A PROJECT REPORT ON

ROUTE TO MARKET IN BEVERAGE INDUSTRY

PROJECT UNDERTAKEN AT ADVANCE SALES & SERVICES COCA-COLA, LUCKNOW

In partial fulfillment of POST GRADUATE DIPLOMA IN MANAGEMENT (2009-11)

By: KULDEEP TIWARI Roll No. TPS (A)-18023

SIVA SIVANI INSTITUTE OF MANAGEMENT, KOMPALLY, SECUNDERABAD-500014

ACKNOWLEDGEMENT
I would like to express my heartiest gratitude to Ms. MEGHNA (HR Manager) of Advance Sales & Services-Coca-Cola, Lucknow for giving me an opportunity to associate myself to the worlds largest soft drink Co. I would like to express my heartiest gratitude to MR. VYOM SRIVASTAVA (RTM Manger) of Advance Sales & Services-Coca-Cola, Lucknow for giving me an opportunity to associate myself to the worlds largest soft drink Co., without whom an internship with, Advance Sales & Services-Coca-Cola, Lucknow would not have been possible. I am grateful to him, for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I express my gratitude to Advance Sales & Services-Coca-Cola, Lucknow for having given me an opportunity to work with them and make the best out of my internship.

Place: Secunderabad Date:

Signature Kuldeep Tiwari

DECLARATION

I, KULDEEP TIWARI, declare that this project report titled Route To Market has been carried out by me under the guidance of Prof. K.S.HARISH of Siva Sivani Institute Of Management and Mr. Vyom Srivastava of Advance Sales & Services Pvt Ltd Lucknow; and it is my original work as part of my academic course.

Signature Kuldeep Tiwari

CONTENT

TABLE OF CONTENT

PAGE NO.

CHAPTER- 1: INTRODUCTION..6
1.1: A brief insight- The FMCG Industry in India..7 1.2: A brief insight- The Beverage Industry in India.....8 Figure: Beverage Industry in India.. 10 1.3: Objectives of the 1.4 study.11

A Literature Review..11

CHAPTER 2
2.1 Industry profile ..15

2.2 Company profile.27 2.3 Departmental Details.34

2.4 Product profile36

CHAPTER-3 RESEARCH METHODLOGY

3.1 Introduction42 3.2 Research Design42 3.3 Sample Profile...42 3.4 Tools and Methods Data Collection.43 3.5 Limitations....43

CHAPTER- 4
4.1 Data Analysis...44 4.2 Interpretation52.

CHAPTER-5
5.1 Findings58 5.2 Suggestion.60 5.3 Bibliography.61

CHAPTER-1
INTRODUCTION-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. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The CocaCola Company the worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. Coca-Cola being a global company has several brands throughout the globe. It has its operations in more than 200 countries and India is one of them. The company is leading over rivalry companies with major market share and most preferred brands in India. The company is having 8 major brands viz Coke, Thumbs-up, Sprite, Limca, Fanta, Maaza, Pulpy Orange and Kinley in India. Out of these brands the company is having 3 major juice drinks which are Maaza , Pulpy Orange and Nimbozz Fresh of which the latter one is recently introduced in Indian market. In India Coca-Cola does its business on franchise basis. This `RTM` project is done for an area of Advance Sales And Service Pvt Ltd (Franchise in Lucknow). RTM stands for Route To Market, helps in designing route and planning for distribution.

Coca-cola enterprise Inc.

Type Founded Headquarters Chief Executing Officer Industry Revenue Operating income Net Income Employees : : : : : : : : : Public 1886 Atlanta Georgia USA Mutthar Kent Beverages $19800 billion USD $1.495 billion USD $1.143 billion USD 95000 (approx)

1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA-Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an

increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. The FMCG sector consists of the following categories:Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble. Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, CocaCola, Cadbury, Pepsi and Dabur Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT-In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

FIGURE: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:--- Alcoholic, non-alcoholic and sports beverages Natural and Synthetic beverages

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

1.3: OBJECTIVES OF STUDY- The main objective of this RTM project is to increase the sales of the company. To find out the effectiveness of RTM Program To find out cost effective and efficient routes for distribution To develop new routes for seamless distribution The study helps to know the distribution and marketing strategy of the company. To find out total number of outlets for chowk distributor. To find out the present status of COCA -COLA (ThumsUp, Coke, Sprite, Limca, Fanta, Maaza) at the retail outlets in the area. To find out available opportunities in the market by finding gaps. To find out the condition of visi cooler. To collect data for the activation of new map and new channels. To enhance the market share of the company. To find out the ROI of the distributer.

1.4 : A LITERATURE REVIEW-Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is a competitor to CocaCola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. Coca-Cola Co. slightly increased its lead over rival Pepsi-Cola Co. in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to U.S. soft drink industry rankings released last week. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter and data service. The company captured a larger share of the market even though its Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates 44.3 percent

of the U.S. soft drink market, but saw its market share drop between 1999 and 2001. With the latest gains, it's only 0.2 percentage points away from where it stood in 1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2 company commands 31.4 percent of the U.S. soft drink market.

RTM Concept
The full form of RTM is ROUTE TO MARKET. In this the researcher is given a area and the researcher has to make a list according to the outlets he gets in that particular area side by side the researcher has to make a map showing all the outlets which he has listed in his sheet . While drawing map the researcher should plot the outlets as well as big landmark very clearly. RTM helps organization to prepare strategy for effective and efficient distribution. It is the function which starts the process of planning before distribution- directly by franchise and indirectly by distributor. In the case of direct distribution, it involves the planning, developing new routes, deciding appropriate vehicle and number of vehicle and making strategy for seamless distribution. In the case of indirect distribution RTM helps the organization in selecting potential distributor by evaluating available infrastructure of the distributor, deciding and suggesting appropriate infrastructure for the distributor, planning seamless distribution in that area by clubbing appropriate street, developing new routes and deciding which kind of vehicle will visit a particular route.

Red Concept
Red(right execution daily) is a tool to measure sale team and distributors performance in the outlets with respect to all parameters of execution. RED lays down standards for visi-coolers, brand norms and in-outlet activation elements. It lays down specific norms and elements for enhanced in-out brand execution. It tracks brands and brand pack penetration in outlets.

Types of Outlets:
The company has divided their outlets on the basis of the following criteria1. Volume 2. Channel 3. Income group

Volume:
There are four types of outlets according to the volume of sales of the outletDiamond - 800>C/s & above Gold - 500-799C/s Silver - 200-499C/s Bronze - <200C/s

Channel:
(a) Grocery Store (b) Eating & drinking channel 1 (c) Eating & Drinking channel 2 (d) Convenience channel

Income Group:
According to the income group of the area Low Medium High

CHAPTER-2
2.1: INDUSTRY PROFILE-Soft drink Industry in India--Soft drink market size for FY00 was around 270 m.n cases (6480mn bottles). The market witnessed 5- 6% growth in the early90s. Presently the market growth has growth rate of 7- 8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 mn bottles.

Soft Drink Production area The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage market. Growth promotional activities The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of domestic players like campa, thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control.

Types
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. The market can also be segmented on the basis of types of products into cola products and noncola products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango. Since the early 1990s Coca-Cola Corporation and PepsiCo have beencombating on what is known as the Beverage Battlefield in India. Today India is one of the most sought after countries for foreign investments because of their continually growing market opportunities. However during CocaCola and Pepsis attempts to broaden their global consumer bases both companies encountered several obstructions on their pursuits of conquering the Indian soft drink market.

Initial difficulties
From a historical standpoint, Coca-Cola and Pepsi were facing obstructions even before entering the market in the late 1980s. Coca Colas past venture in India had ended on bad terms with the Indian government BEVERAGES Alcoholic Non-Alcoholic Carbonated Non-Carbonated Cola Non-Cola Non-Cola when they refused to offer up their trade secrets. During the absence of foreign investment in the soft drink industry in India a local company, Parle, became the market leader. Parle invested a great deal into their leading brand, Thums Up, and played a dominant role in the soft drink industry until the liberalization of the Indian economy in 1991. After this time many of the political and legal obstacles facing Coca-Cola and Pepsi were lessened.

Political challenges
Other political challenges hindered the success of Coca-Cola and Pepsi in India as well. In 2003, when the United States and Britain invaded Iraq, the All-India Anti-Imperialist Forum called a boycott on goods from America and India. Indians protested American companies for the war and specifically targeted Coca-Cola and Pepsi products. While the war was beyond control for these two companies, management perhaps couldve done more to not only attempt to predict the

backlash from Indian consumers due to the war, but also couldve created advertisement campaigns to address the situation. While political and legal factors produced problems for Coca-Cola and Pepsi, both Coca-Cola and Pepsi did a lot of things to prevent that situation from happening. Both companies heavily participated in the cultural festival of Navratri in western India to promote their products and create brand awareness in a culturally traditional setting. The companies also produced television and print advertisements that linked important Indian themes to their products by building a connect using the relevant local idioms Coca-Cola and Pepsi both utilized popular Indian sporting events, athletes, and celebrities to endorse their products. Both companies couldve made the mistake of using American celebrities or already made American commercials to advertise their products in India, but instead made the right move by making advertisements to specifically target their foreign market.

Pricing price for Indian market

Coca-Cola and Pepsi also made the right moves by adapting to cultural barriers in India. One such barrier was the affordability of products for Indians. Because India is a country where people are known to live on very little a day, the idea of getting people to spend what little they have on a soft drink could be quite a stretch. However Coca-Cola India went with an aggressive pricing policy and reduced the price of their soft drinks in 2003 from 15% to 25% nationwide. To compete competitively in the market ,Pepsi reduced their prices as well. This move allowed both companies to offer products that were affordable to the target market in India but also encouraged more Indians to consume Pepsi and Coca Cola products. Both companies also created smaller sized bottles to allow for lower prices for Indian consumers. Coca-Cola and Pepsi created bottles ranging in size from 200 ml to 500 ml to adapt to cultural needs and increase their sales. By offering smaller sized bottles many consumers also increased the frequency in which they were purchasing the soft drinks.

Coca-cola in India
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 Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference. This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the Company's international family of brands, including Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sunfill hit the market. From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the countrys top international investors.22 By 2003, Coca- Cola India had won the prestigious Woodruf Cup from among 22 divisions of the Company based on three broad parameters of volume, profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew 23% nationally and the Company reached breakeven profitability in the region for the first time.23 Encouraged by its 2002 performance, Coca-Cola India announced plans to double its capacity at an investment of $125 million (Rs. 750 crore) between September 2002 and March 2003.24 Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven whollyowned bottling operations supplemented by seventeen franchisee-owned bottling operations and a network of twenty-nine contractpackers to manufacture a range of products for the company. The complete manufacturing process had a documented quality control and assurance program including over 400 tests performed throughout the process The complexity of the consumer soft drink market demanded a distribution process to support 700,000 retail outlets serviced by a fleet that includes 10- ton trucks, open-bay three wheelers, and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the cities.25 In addition to its own employees,

Coke indirectly created employment for another 125,000 Indians through its procurement, supply, and distribution networks.

Poters five force Models:

Defining the industry: Both concentrate producers (CP) and bottlers are profitable. These
two parts of the industry are extremely interdependent, sharing costs in procurement, production, marketing and distribution. Many of their functions overlap; for instance, CPs do some bottling, and bottlers conduct many promotional activities. The industry is already vertically integrated to some extent. They also deal with similar suppliers and buyers. Entry into the industry would involve developing operations in either or both disciplines. Beverage substitutes would threaten both CPs and their associated bottlers. Because of operational overlap and similarities in their market environment, we can include both CPs and bottlers in our definition of the soft drink industry. In 1993, CPs earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14% (Exhibit 1). This industry as a whole generates positive economic profits.

Rivalry: Revenues are extremely concentrated in this industry, with Coke and Pepsi, together
with their associated bottlers, commanding 73% of the case market in 1994. Adding in the next tier of soft drink companies, the top six controlled 89% of the market. In fact, one could characterize the soft drink market as an oligopoly, or even a duopoly between Coke and Pepsi, resulting in positive economic profits. To be sure, there was tough competition between Coke and Pepsi for market share, and this occasionally hampered profitability. For example, price wars resulted in weak brand loyalty and eroded margins for both companies in the 1980s. The Pepsi Challenge, meanwhile, affected market share without hampering per case profitability, as Pepsi was able to compete on attributes other than price.

Substitutes: Through the early 1960s, soft drinks were synonymous with colas in the mind
of consumers. Over time, however, other beverages, from bottled water to teas, became more popular, especially in the 1980s and 1990s. Coke and Pepsi responded by expanding their offerings, through alliances (e.g. Coke and Nestea), acquisitions (e.g. Coke and Minute Maid), and internal product innovation (e.g. Pepsi creating Orange Slice), capturing the value of

increasingly popular substitutes internally. Proliferation in the number of brands did threaten the profitability of bottlers through 1986, as they more frequent line set-ups, increased capital investment, and development of special management skills for more complex manufacturing operations and distribution. Bottlers were able to overcome these operational challenges through consolidation to achieve economies of scale. Overall, because of the CPs efforts in diversification, however, substitutes became less of a threat.

Power of Suppliers: The inputs for Coke and Pepsis products were primarily sugar and
packaging. Sugar could be purchased from many sources on the open market, and if sugar became too expensive, the firms could easily switch to corn syrup, as they did in the early 1980s. So suppliers of nutritive sweeteners did not have much bargaining power against Coke, Pepsi, or their bottlers. NutraSweet, meanwhile, had recently come off patent in 1992, and the soft drink industry gained another supplier, Holland Sweetener, which reduced Searles bargaining power and lowering the price of aspartame. With an abundant supply of inexpensive aluminum in the early 1990s and several can companies competing for contracts with bottlers, can suppliers had very little supplier power. Furthermore, Coke and Pepsi effectively further reduced the supplier of can makers by negotiating on behalf of their bottlers, thereby reducing the number of major contracts available to two. With more than two companies vying for these contracts, Coke and Pepsi were able to negotiate extremely favorable agreements. In the plastic bottle business, again there were more suppliers than major contracts, so direct negotiation by the CPs was again effective at reducing supplier power.

Power of buyers: The soft drink industry sold to consumers through five principal channels:
food stores, convenience and gas, fountain, vending, and mass merchandisers (primary part of Other in Cola Warscase). Supermarkets, the principal customer for soft drink makers, were a highly fragmented industry. The stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due to their tremendous degree of fragmentation (the biggest chain made up 6% of food retail sales, and the largest chains controlled up to 25% of a region), these stores did not have much bargaining power. Their only power was control over premium shelf space, which could be allocated to Coke or Pepsi products. This power did give them some control over soft drink profitability. Furthermore, consumers expected to pay less through this channel, so prices were lower, resulting in somewhat lower profitability. National mass merchandising chains such as Wal-Mart, on the

other hand, had much more bargaining power. While these stores did carry both Coke and Pepsi products, they could negotiate more effectively due to their scale and the magnitude of their contracts. For this reason, the mass merchandiser channel was relatively less profitable for soft drink makers. The least profitable channel for soft drinks, however, was fountain sales. Profitability at these locations was so abysmal for Coke and Pepsi that they considered this channel paid sampling. This was because buyers at major fast food chains only needed to stock the products of one manufacturer, so they could negotiate for optimal pricing. Coke and Pepsi found these channels important, however, as an avenue to build brand recognition and loyalty, so they invested in the fountain equipment and cups that were used to serve their products at these outlets. As a result, while Coke and Pepsi gained only 5% margins, fast food chains made 75% gross margin on fountain drinks. Vending, meanwhile, was the most profitable channel for the soft drink industry. Essentially there were no buyers to bargain with at these locations, where Coke and Pepsi bottlers could sell directly to consumers through machines owned by bottlers. Property owners were paid a sales commission on Coke and Pepsi products sold through machines on their property, so their incentives were properly aligned with those of the soft drink makers, and prices remained high. The customer in this case was the consumer, who was generally limited on thirst quenching alternatives. The final channel to consider is convenience stores and gas stations. If Mobil or Seven-Eleven were to negotiate on behalf of its stations, it would be able to exert significant buyer power in transactions with Coke and Pepsi. Apparently, though, this was not the nature of the relationship between soft drink producers and this channel, where bottlers profits were relatively high, at $0.40 per case, in 1993. With this high profitability, it seems likely that Coke and Pepsi bottlers negotiated directly with convenience store and gas station owners. So the only buyers with dominant power were fast food outlets. Although these outlets captured most of the soft drink profitability in their channel, they accounted for less than 20% of total soft drink sales. Through other markets, however, the industry enjoyed substantial profitability because of limited buyer power.

Barriers to Entry: It would be nearly impossible for either a new CP or a new bottler to
enter the industry. New CPs would need to overcome the tremendous marketing muscle and market presence of Coke, Pepsi, and a few others, who had established brand names that were as much as a century old. Through their DSD practices, these companies had intimate relationships with their retail channels and would be able to defend their positions effectively through

discounting or other tactics. So, although the CP industry is not very capital intensive, other barriers would prevent entry. Entering bottling, meanwhile, would require substantial capital investment, which would deter entry. Further complicating entry into this market, existing bottlers had exclusive territories in which to distribute their products. Regulatory approval of intrabrand exclusive territories, via the Soft Drink Interbrand Competition Act of 1980, ratified this strategy, making it impossible for new bottlers to get started in any region where an existing bottler operated, which included every significant market in the US. In conclusion, an industry analysis by Porters Five Forces reveals that the soft drink industry in 1994 was favorable for positive economic profitability, as evidenced in companies financial outcomes. Compare the economics of the concentrate business to the bottling business. Why is the profitability so different? In some ways, the economics of the concentrate business and the bottling business should be inextricably linked. The CPs negotiates on behalf of their suppliers, and they are ultimately dependent on the same customers. Even in the case of materials, such as aspartame, that are incorporated directly into concentrates, CPs pass along any negotiated savings directly to their bottlers. Yet the industries are quite different in terms of profitability. The fundamental difference between CPs and bottlers is added value. The biggest source of added value for CPs is their proprietary, branded products. Coke has protected its recipe for over a hundred years as a trade secret, and has gone to great lengths to prevent others from learning its cola formula. The company even left a billion-person market (India) to avoid revealing this information. As a result of extended histories and successful advertising efforts, Coke and Pepsi are respected household names, giving their products an aura of value that cannot be easily replicated. Also hard to replicate are Coke and Pepsis sophisticated strategic and operational management practices, another source of added value. Bottlers have significantly less added value. Unlike their CP counterparts, they do not have branded products or unique formulas. Their added value stems from their relationships with CPs and with their customers. They have repeatedly negotiated contracts with their customers, with whom they work on an ongoing basis, and whose idiosyncratic needs are familiar to them. Through long-term, in depth relationships with their customers, they are able to serve customers effectively. Through DSD programs, they lower their customers costs, making it possible for their customers to purchase and sell more product. In this way, bottlers are able to grow the pie of the soft drink market. Their other source of

profitability is their contract relationships with CPs, which grant them exclusive territories and share some cost savings. Exclusive territories prevent intrabrand competition, creating oligopolies at the bottler level, which reduce rivalry and allow profits. To further build glass houses, as described by Nalebuff and Brandenberger (Co-opetition, p. 88), for their bottlers, CPs pass along some of their negotiated supply savings to their bottlers. Coke gives 2/3 of negotiated aspartame savings to its bottlers by contract, and Pepsi does this in practice. This practice keeps bottlers comfortable enough, so that they are unlikely to challenge their contracts. Bottlers principal ability is to use their capital resources effectively. Such operational effectiveness is not a driver of added value, however, as operational effectiveness is easily replicated. Between 1986 and 1993, the differences in added value between CPs and bottlers resulted in a major shift in profitability within the industry. Exhibit 1 demonstrates these dramatic changes. While industry profitability increased by 11%, CP profits rose by 130% on a per case basis, from $0.10 to $0.23. During this period, bottler profits actually dropped on a per case basis by 23%, from $0.35 to 0.27. One possibility is that product line expansion in defense against new age beverages helped CPs but hurt bottlers. This would be expected if bottlers per case costs increased due to the operational challenges and capital costs of producing and distributing broader product lines. This, however, was not the case; cost of sales per case decreased for both CPs and bottlers by 27% during this period, mostly due to economies of scale developed through consolidation. The real difference between the fortunes of CPs and bottlers through this period, then, is in top line revenues. While CPs were able to charge more for their products, bottlers faced price pressure, resulting in lower revenues per case. These per case revenue changes occurred during a period of slowing growth in the industry, as shown in Exhibit 2. Growth in per capita consumption of soft drinks slowed to a 1.2% CAGR in the period 1989 to 1993, while case volume growth tapered to 2.3%. In an struggle to secure limited shelf space with more products and slower overall growth, bottlers were probably forced to give up more margin on their products. CPs, meanwhile, could continue increasing the prices for their concentrates with the consumer price index. Coke had negotiated this flexibility into its Master Bottling Contact in 1986, and Pepsi had worked price increases based on the CPI into its bottling contracts. So, while the bottlers faced increasing price pressure in a slowing market, CPs could continue raising their prices. Despite improvements in per case costs, bottlers could not improve

their profitability as a percent of total sales. As a result, through the period of 1986 to 1993, bottlers did not gain any of the profitability gains enjoyed by CPs. Why have contracts between CPs and bottlers taken the form they have in the soft drink industry? Contracts between CPs and bottlers were strategically constructed by the CPs. Although beneficial to bottlers on the surface, the contracts favored the CPs long-term strategies in important ways. First, territorial exclusivity is beneficial to bottlers, as it prevents intrabrand competition, ensures bargaining power over buyers and establishes barriers to entry. But it is also beneficial to CPs, who are also not subject to price wars within their own brand. The contracts also excluded bottlers from producing the flagship products of competitors. This created monopoly status for the CPs, from the bottler perspective. Each bottler could only negotiate with one supplier for its premium product. Violation of this stipulation would result in termination of the contract, which would leave the bottler in a difficult position. Historically, contracts were designed hold syrup prices constant into perpetuity, only influenced by rising prices of sugar. This changed in 1978 and 1986, as contracts were renegotiated, first to accommodate for rises in the CPI, and then to give general flexibility to the CP (Coke) in setting prices. Coke could negotiate this more flexible pricing because its bottlers were dependent on it for business. It further ensured that its bottlers would be captive to its monopoly status by buying major bottlers and then selling them into the CCE holding company, which would only produce Coke products. Coke would capture 49% of the dividends from CCE, without the complications of vertical integration.

SWOT Analysis
Strength Branding and packaging Appealing to young generation Superior Taste (in Blind Tests) Many distributions Opportunities Global markets Threats Health Conscious Consumer Trends Weakness Hard to enter markets occupied by Coca-Cola Lack of novelty in advertising

Additional Youth Consumers entering More substitutes the market

Competitor of coca-cola:
Apart from coca-cola, other major players are as follows: PEPSICO: PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational corporation headquartered in Purchase, NY with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. Their main product, Pepsi Cola, sells over 100 billion cans a year. Besides the Pepsi-Cola brands, the company owns the brands Quaker Oats, Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Coppell, Mountain Dew, Miranda and 7-Up (outside the USA). PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab governmentowned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.

DABUR INDIA- Dabur india ltd Dabber India Limited is the fourth largest FMCG Company in India and Dabur had a turnover of approximately US$ 600 Million (Rs. 2,834.11 Corer fy09) & Market Capitalization of over US$ 2.2 Billion (Rs 10,000 Corer), with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real . About Real- Real has been the preferred choice of consumers when it comes to packaged fruit juices, which is what makes India's No. 1 Fruit Juice brand. A validation of this success is that Real has been awarded Indias Most Trusted Brand status for four years in a row. Today, Real has a range of 14 exciting variants - from the exotic Indian Mango, Mausambi, Guava & Litchi to international favorites like Pomegranate, Tomato, Cranberry, Peach, Blackcurrant & Grape and the basic Orange, Pineapple, Apple & Mixed Fruit. This large range helps cater different needs and occasions and has helped Real maintain its dominant market share. Real Active - Real Active is a range of unsweetened juices that contain no adder sugar colours or preservatives. Real Active juices are made from concentrated juices. After the juice is pressed from the fruit, the water is removed to reduce transportation load. Real Burst - Real Burst, the latest addition to Dabur's Foods portfolio, has a range of light & refreshing fruit beverage. Available in 4 exciting flavours of Mixed Fruit, Crispy Apple, Orange Bytes and Mango Mania, Real Burrst promises an experience that delivers refreshment through lightness of fresh fruits to you.Ral Burrst comes in an attractive tetrapack highlighting the 'Lite and Refreshing' qualities of fruits that it brings to you. All 4 variants are made available in 1 liter and 200 ml packs, priced at Rs. 65 and Rs. 15 respectively. GODREJ INDIA- Godrej Hershey, Ltd. markets juices and fruit drinks, soymilk based drinks, edible oils, packaged tea, and confectionery products. Godrej Hershey, Ltd. was formerly known as Godrej Beverages and Food, Ltd. The company was founded in 2002 and is based in Mumbai, India. It has a confectionery plant in the Chittoor. As of May 2007, Godrej Hershey, Ltd. operates as a subsidiary of Hershey Co. PARLEY AGRO Parle Agro is a trusted name in the Indian beverage industry and has been refreshing India since two decades with leading brands like Frooti, Appy, Appy Fizz, LMN and packaged drinking water, Bailley. As an industry pioneer, Parle Agro is the first to introduce fruit

drinks in a Tetra Pak in India, the first to introduce apple nectar and the first to introduce fruit drinks in PET bottles. In 2007, Parle Agro forayed into the confectionery business. In the confectionery division, Parle Agro has brands like Mintrox, Buttercup, Buttercup Softease and Frewt clairs. The latest product from Parle Agro Saint Juice was launched in 2008.

2.2: COMPANY PROFILESHistory of coca-colaThe world has changed in many ways since pharmacist, John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. The name and the product mean so many things to hundreds of Millions of consumers around the globe. Coca-Cola products are served more than 705 million times every day, quenching the thirsts of consumers in more than 195 countries in every climate. That's a long way to come after such a modest beginning... May 1886 - Pemberton concocted a caramel-colored syrup in a three-legged brass kettle in his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. 1886 - Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drink brand ever since. 1891 - Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola business for $2,300. Pemberton was forced to sell because he was in a state of poor health and was in debt. Within four years, Candler's merchandising flair helped expand consumption of Coca-Cola to every state and territory. 1893 - In January "Coca-Cola" was registered in the U.S. Patent office. 1917 - 3 Million Coke's sold per day. " " is the worlds most recognized trademark. 1919 - The Coca-Cola Company was sold to a group of investors for $25 million. 1923 - The Coca-Cola Company was sold after the Prohibition Era to Ernest Woodruff for 25 million dollars. He gave Coca-Cola to his son, Robert Woodruff, who would be president for six decades. Woodruff's leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over. During the Woodruff era, Mr. Woodruff made a

promise to the armed forces of the United States to supply Coca-Cola to every serviceperson. He said that costs and location did not matter; he supplied 5 billion bottles to the service. 1925 - 6 Million Coke's sold per day. 1927 - The first Coca-Cola radio advertisement. 1928 - Sales of bottled Coca-Cola surpassed fountain sales for the first time. 1943 - On June 29, an urgent cablegram arrived from General Dwight Eisenhower's Allied Headquarters in North Africa, requesting 10 Coca-Cola bottling plants to serve American servicemen overseas. Eventually, 64 plants were set up during WWII. 1950 - Advertising on on the television began. Currently Coca-Cola is advertised on over five hundred TV channels around the world. 1961 - Sprite was introduced. 1971 - The song "I'd like to Buy the World a Coke" was released. 1978 - The two liter bottle was introduced, and during that same year the company also introduced plastic bottles 1982 - Diet Coke was introduced in July. 1985 - The Coca-Cola Company made what has been known as one of the biggest marketing blunder. They stumbled onto a new formula in efforts to produce diet Coke. They put forth 4 million dollars of research to come up with the new formula. The new formula was a sweeter variation with less tang, it was also slightly smoother. The factor that influenced the change was that Coke's market share fell 2.5 percent in four years. Each percentage point lost or gain meant 200 million dollars. This was the first flavor change since the existence of the Coca-Cola company. The change was announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV and newspaper reporters attended this very glitzy announcement. The change to the world's best selling soft drink was heard by 81 percent of the United States population within twenty-four hours of the announcement. Within a week of the change, one thousand calls a day were floo ding the company's eight hundred number. Most of the callers were shocked and/or outraged, many said that they were considering switching to Pepsi. Within six weeks, the eight hundred number was being jammed by six thousand calls a day. The company also fielded over forty thousand letters, which were all answered and each person got a coupon for the new Coke.

1985 - July 10, eighty-seven days after the new Coke was introduced, the old Coke was brought back in addition to the new one. This was greatly due to dropping market share and consumer protest. The market share fell from a high of 15 percent to a low of 1.4 percent. This was said to be a classic marketing retreat. Coca-Cola executives admitted that they had goofed by taking the old Coke off the market. The Coca-Cola company's eight hundred number received eighteen thousand calls of gratitude. The comeback of old Coke drove stock prices to the highest level in twelve years. This was said to be the only way to regain the lead on the cola wars. 1993 - Coca-Cola exceeds 10 Billion cases sold worldwide. 1996 - The Summer Olympics will be held in Atlanta, Georgia, the home of Coca-Cola. For more than 65 years, Coca-Cola has been a sponsor of the Olympics.

CSR (Company social responsibility)One great earmark that the Coca-Cola Company has is helping the people of Atlanta. They accomplish this through scholarships, hotlines, donations and contributions. Another large accomplishment that the Coca-Cola has, Is being the first company to make and use recycled plastic bottles.

Coke in IndiaDespite the formidable track of its parent $18 billion giant in Atlanta USA. Coke India record 1800 crore soft drink makers is prominent. Coca-Cola entered in India market after 16 years from Hathras Dec 1993.Cocacola became the undisputed leader of the Indian soft drink market because of their aquiring rights of Ramesh Chauhan aerated Parle drinks with one stroke of pen and a bill of 140 crore, coke picked by five brands Thums up, limca, Goldspot, Citra, Maaza with a combined rate of 65% with Thumsup alone accounting for 56% then 650 crore segment.

Benchmark- Coca-Cola ranks no.1 brand in the world by the business world survey followed by companies like Microsoft and IBM. Cocacola is the market leader in the whole world in beverage industry. Business week magazine ranks Cocacola on 4th position in India FMCG industry.

 Coca-Cola enjoys approx 60% market share in Indian beverage industry.

Quality Assurance-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 countrys top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations.

Coca-Cola Advertisements its The Real Thing-Advertising has played an important role in the success of companys products since first

newspaper ad in 1886, which read, "Coca-Cola. Delicious! Refreshing! Exhilarating! Invigorating." The Company uses advertising to trigger desire as often and in as many ways as possible. Throughout the years, slogans for Coca-Cola have always been memorable. Here are some highlights: 2000 - Coca-Cola Enjoy 1993 - Always Coca-Cola 1990 - Can t Beat the Real Thing 1989 - Can t Beat the Feeling 1986 - Red, White and You 1982 - Coke Is It 1976 - Coke Adds Life 1971 - I d Like to Buy the World a Coke 1969 - It s the Real Thing 1963 - Things Go Better with Coke 1959- Be Really Refreshed 1944- Global High Sign 1942- It s the Real Thing

1936- It s the Refreshing Thing To Do 1929 - The Pause That Refreshes Fine illustrations by noted artists, including Norman Rockwell and N. C. Wyeth, were the hallmark of early campaigns in premier magazines. Artist Haddon Sundblom s portraits for holiday ads, which began in the 1930s, helped mould the national image of a red-suited Santa Claus. Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high standard of quality for other products around the world. The Company recognizes that Coca-Cola belongs to the billions of consumers in every corner of the globe who have chosen it as their favorite soft drink. Companys advertising reflects that special relationship between consumers and the simple moments of pleasure they have come to associate with Coca-Cola. Company Global Bottling System-Today, coke products reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by The Coca-Cola Company, companys global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide. The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for our consumers. Coca-Cola began as a fountain product, but candy merchant Joseph A. Biedenharn of Mississippi was looking for a way to serve this refreshing beverage at picnics. He began offering bottled Coca-Cola, using syrup shipped from Atlanta, during an especially busy summer in 1894. In 1899, large-scale bottling became possible when Asa Candler granted exclusive bottling rights to Joseph B. Whitehead and Benjamin F. Thomas of Chattanooga, Tennessee. The contract marked the beginning of The Coca-Cola Companys unique independent bottling system that remains the foundation of Company soft drink operations.

Brand Localization Strategy: The Two Indians-India A: Life ho to anise India A, the designation Coca-Cola gave to the market segment including metropolitan areas and large towns, represented 4% of the countrys population. This segment sought social bonding as a need and responded to inspirational messages, celebrating the benefits of their increasing social and economic freedoms. Life ho to anise, (life as it should be) was the successful and relevant tagline found in Coca-Colas advertising to this audience. India B: Thanda Matlab Coca-Cola Coca-Cola India believed that the first brand to offer communication targeted to the smaller towns would own the rural market and went after that objective with a comprehensive strategy. India B included small towns and rural areas, comprising the other 96% of the nations population. This segments primary need was out-of-home thirst-quenching and the soft drink category was undifferentiated in the minds of rural consumers. Additionally, with an average Coke costing Rs. 10 and an average days wages around Rs. 100, Coke was perceived as a luxury that few could afford.

Distribution system of Coca Cola Lucknow

Brindavan Bottlers Pvt. Ltd. Safedabad Barabanki

Charbagh Depot

Khurram Nagar
Depot

Chinhat Depot

Distribution Department

General Trade

General Trade

General Trade

Key Accounts

Dealers and agencies

Route 1 Route 2 Route 3

Route 1 Route 2 Route 3

Route 1 Route 2 Route 3

Direct Route

Various Districts

2.3: DEPARTMENTAL DETAILS

M.D
M.D. Ladani

DIRECTOR
Vivek Ladani

G.M Sales &Mktg

Sales Head

Rajiv Saxena

B.K.Srivastava

ASM (5)

R.D Manager Anil Nigam

H.R Manager Meghana

KEY A/L

RTM Manager Vyom krishna

MEM

Ashok Malhotra

Devender Srivastava

Mission

To refresh the world... In mind, body and spirit. To inspire moments of optimism through our brands and our actions. To create value and make a difference everywhere we engage.

Vision More than a billion times a day, consumer choose our brand of refreshment because coca cola is... The Symbol of Quality Customers and Consumers Satisfaction

A Responsible Citizen of the World

2.4: PRODUCT PROFILE

BRANDS TAGLINE
Thumsup - Taste the thunder Cocacola - Open happiness Sprite - Seedhi baat no bakwaas ,clear hai Limca Maaza taazgi ka Fanta Dikhao apne asli rang Maaza - Bina guthli wala aam MMNF- Bilkul ghar jaisa MMPO - Refreshingly Orange KINLEY - Boond-Boond Mein Vishwas

BRAND AMBASSDORS
Thumsup -Akshay Kumar Cocacola -Imran Khan Sprite -Shahrukh Khan Fanta -Genelia Dsouza Limca -Riya Sen MMPO Nikhil Chinnappa

BRAND VALUE
2008 Rank2007 RankBrandSector2008 Brand Value ($m) coca-cola Beverages66,667Coca-Cola has once again retained its status as the worlds most valuable brand. Proving that it still has a few tricks up its sleeve, current trends toward healthier diets have seen Coke shift focus to betterfor-you drinks in the last year, with the launch of products like the vitamin and mineral enriched Diet Coke Plus and the continued push behind Coke Zero, which is now available in more than 80 countries. Coke has also worked hard to engage consumers, with innovative online campaigns such as Design Your Own that invited people to design their own Coke containers and share them with the world.

2008 2007 2006 2005 2004 2003 2002 2001

66,667 65,324 67,000 67,525 67,394 70,453 69,637 68,945

ABOUT BRANDS

Coca-colaThe worlds favorite and valuable drink and brand. Coca -cola has having truly remarkable heritage. From a humble beginning in 1886,it is now the flagship brand of the largest manufacturer, marketer and distributer of non alcoholic beverage in the world. Coca-colas advertisement campaigns jo chaho ho jaye and life ho to aisi were very popular and had entered the youths vocabulary. The campaign thanda matlab coca-cola make it indias favorite brand. Coca-cola had signed on various celebrities including stars such as Krishna kapoor, cricketers such as srinath, sourav ganguly, Its brand ambassadors are Amir Khan and Hrithik Roshan. The competitor on the cola category is Pepsi.

Thums up
Thums up is leading sparking soft drink and most trusted brand in india. Originally introduced in 1977,and acquired coca-cola company in 1993.thumps is known as for its strong ,fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys. The competitor of the brand on same category is Pepsi.

Sprite
In selling sprite is the rank no. 4 in world and is sold in more than 165 countries. It was launched in year 1999 and 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. Its clear crisp refreshing taste encourage the todays youth to trust their instincts,inluence them to be true to who they are and to be their thirst. Sprite is liked by all age groups & people. Jan 09 report of The times of India claims sprite to be the second brand in sales after Thumsup Competitor : 7up & Mountain dew

Fanta
It is the orange drink of the coca-cola company. It entered the Indian market in the year 1993.fanta stands for its vibrant colour, tempting taste and tingling bubbles. over the years fanta

has occupied a strong market place and is identified as the fun catalyst. Fanta has two flavors apple & orange. This is very popular drink among females. Competitor: Mirinda, Parles Appy fizz

Limca
Limca derived from nimbu+jaisa, hence lime sa .limca has lived up to its promise and has been the original choice of millions of consumer for over three decades. It born in 1971 ,limca has remained unchallenged as the no, 1 sparking drink in the cloudy lemon segment. The success formula of limca is its freshness power. Limcas freshness is like no other-lime n lemoni limca refreshes, reenergizes, rejuvenates not just your body but also your emotions. Freshness of emotions idea stemmed from the inside about our consumerthe desire to rejuvenate her/his emotions which are constantly being dulled in the routine pursuit of success. Competitor : Nimbooz

Minute maid pulpy orange

This concept comes when the florida food corporation developed orange juice powder. they branded it minute maid, a name connoting the convenience and the ease of preparation(in minute).the lunch of minute made pulpy orange in india(starting from the south of the country) is aimed to further extend the leadership of coca-cola in india in the juice drink category. This contains no sugar & added flavor .This is a family drink

Maaza
Maaza is the most popular drink being the mango variety, so much that over the years, the Maaza brand has become synonymous with Mango. Maaza currently dominates the fruit drink category and competes with Pepsi's Slice brand of mango drink and Frooti, manufactured by Parle Agro. Maaza was launched in 1976 in India.Maaza was acquired by Coca-Cola India in 1993 from Parle-Bisleri along with other brands such as Limca, Citra, Thums Up and Gold Spot. Maaza is popular among children and women. Competitor: Slice, frooti

Kinley-

The importance of water can never understand. Particularly in a nation like india where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to the sub-continent. Soft drink major Coca-Cola has launched a new marketing initiative for its packaged drinking water brand, Kinley.The previous marketing campaign for Kinley sported the tag line Boond-Boond Mein Vishwas (trust in every drop). This time around the tag line, an extension of Kinleys previous campaign, reads Vishwas Karo.

Minute Made Nimbu FreshRiding on the success of Minute Maid Pulpy Orange, Coca-Cola in India today announced the launch of its latest product variant under the Minute Maid brand umbrella.The new Minute Maid Nimbu Fresh is a lemon juice-based drink with no added preservative or added colour, developed for the Indian market. The lemon-flavoured drink is made out of fresh lemon juice concentrate, emulating home-made 'nimbu pani', and casrries the tagline: 'Bilkul ghar jaisa' (just like home). The product will be available in two pack sizes of 400 ml and 1 litre, priced at Rs15 and Rs40 respectively. The new drink is targeted at consumers across all age groups who are on the look out for a naturally refreshing juice drink.

BRAND NAME Coca-cola

GLASS 200 ml, 300 ml

PET 600 ml, 1.25 L, 500 ml + 100 ml 600 ml, 1.25 L 500 ml + 100 ml 600 ml, 1.25 L, 500 ml + 100 ml 600 ml, 1.25 L, 500 ml + 100 ml 600 ml, 1.5 L,

CAN 330 ml

FOUNTAIN Various Sizes

Various Sizes 330 ml Various Sizes 330 ml Various Sizes 330 ml Various Sizes 330 ml

THUMPS UP

200 ml, 300 ml

SPRITE

200 ml, 300 ml

FANTA

200 ml, 300 ml

LIMKA MINUTE MAID PULPY ORANGE

200 ml, 300 ml 400 ml, 1 L, 1.25 L

MAAZA KINLEY

200 ml, 250 ml,

250 ml, 600 ml, 1.2 L

POCKET MAAZA 200 ml

500 ml, 1000 ml

PACK 300 ml 250 ml 200 ml 600 ml 1.2 L

NO. OF BOTTELS IN A CASE 24 24 24 24 12

2L

CHAPTER- 3
Research Methodology:
The research method to developing route to increase the sale and market share of coke in the market. The research is as following-3.1: IntroductionType of Research Method of Research Sampling method Sample Unit Sample Size Statistical Tool : : : : : : Exploratory Research Design Data Collection method Random Sampling Outlets 170 Route Map

3.2: Research designA descriptive research design has been chosen to study the assessment of market potential for juice segment in rural areas. The reasons for chosen descriptive research design are:-

To describe the extent of association between the variables under consideration. Research design was pre-planned and structured.

3.3: Sampling planThe study is conducted in Lucknow. For the purpose of study, a sample size of 165 numbers of outlets was taken. Simple Random sampling method has been used for the present study.

3.4: Method of Data Collection1. Primary data collection: Data for the project is collected from the primary sources. The sheet was filled by the author as a part of the survey. 2. Secondary Data: Data collected from the organizations web site

Variables of the study Types of outlets(E&D,CON.GRO) Kinds of outlet on the basis of inventory(A,B,C,D)

3.5: Limitation of the study Secondary data might not be authentic enough for the correct representation of objective. The project is conducted in Lucknow, so it is not possible to draw correct picture of overall performance. The study is only confined to retailers and so the preference of actual consumers could not be taken. The retailers may or may not reveal the true expected sales figures

CHAPTER-4

4.1: DATA ANALYSIS

DESIGN ROUTE WITH DATA:-

Route no 1:- Chowk, Phoolvali gali, Ban vali gali, Choodi vali gali, Tulasi das
marg, Nakkas, Shahmeera road, Medical crossing, Jawahar nagar, Janta gali, Buddha park, KGMC, Khun-khun ji road, Koneswar chauraha.

S.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Outlet name Shukla general store Blow hot blow cold Mishra bhojanlay Kumar cool jalpan grih Maa durga kachaudi bhandar Dixit cool corner Bhaiya pan and cig shop Dixit amul Radhey lal Tiwari Hot and cool caf Mishra pan bhandar Satish kumar Bhola pan bhandar Dixit chat bhandar Cool ganga ATN cool corner Sri lassi corner Agarwal general store Munna pan bhandar Anita masala company Radhey lal misthan bhandar Sanket tea centre K.L tiwati juice corner Krishna sweet point Dixit bhojnalay Dixit tambaku bhandar Prem misthan bhandar Gaurav fast food Amana bhojanalaya Bharat lal dugdh bhandar Radhe lal dudghe bhandar

Address Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk Chowk chauraha Chowk chauraha Chowk chauraha Chowk Chowk Chowk Chowk Chowk Chowk

Contact no 9307266383 9208447220 9451575744 9336044346

SGA NO NO NO Yes Yes

coke 10 5 4 7 5 10 5 4 7 10 3 5 6 5 25 7 22 25 8 5 10 4 4 12 6 5 5 5 6 15 10

pepsi 12 5 6 3 2 1 12 18 2 0 3 7 8 3 15 6 12 10 6 2 8 5 6 8 9 7 2 4 5 18 9

9335894656 9307574030 9795728889 9696684951 9839821504

Yes Yes NO Yes Yes Yes Yes

9369153165 9838995028 2257238

Yes Yes Yes NO

2254444 6540499 9235153247 2252404 6533510 9696847782 9369340529 9336358150 9335097550

Yes Yes NO Yes Yes NO NO Yes NO Yes

9919788635

NO NO

9305737206 9839704344

Yes Yes NO

32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Gomati general store Sanjay store Jitu juice corner Adardh general store Vej corner Tanu kachaudi corner Vishal thandai corner Jai dudgh bhandar Chaurasia Pan bhandar Lalgi tea stall Keshaw pan misthan bhandar Pandit ji Ashok general store Gupta pco Kayam pan masala Atul hotel Rishab general store Tandon provisional store maya kirana store Arjun misthan bhandar Ganpati kachaudi bhandar Rahul pan bhandar Pappu general store Manoj rathorer Anjani kumar general store Shiwam general store Gomati general store Sirag general store Sarkar bakers

Banwaligali Banwaligali Khun khun ji road Khun khun ji road Khun khun ji road Khun khun ji road Khun khun ji road Koneshwar Phool gali Phool gali Phool gali Phool gali Phool gali Phool gali Phool gali Joota bajar Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Badi kali mandir Tulsidas Tulsidas

9415543096 9453210999 9415596592 9451309120 9669121567 9335791254

NO NO Yes NO Yes NO Yes

3 10 10 10 7 7 14 12 4 5 5 3 7 6 4 8 1 2 5 4 10 3 4 7 2 3 5 12 20

5 4 6 5 4 7 4 13 5 7 5 3 6 3 5 6 8 5 3 4 1 4 4 5 6 7 10 14 22

9918669533

Yes NO NO Yes

8081939732 9956620447 3230397

NO Yes NO NO NO NO

9305295898 9335576858 9335748812 9026030532 9696333988 9335959876

NO NO NO Yes Yes Yes NO

5223251427 9369411428 93053572180 9369662084 9396482665

NO Yes NO Yes Yes

62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90

S K general store Arsad general store Vishal mega mart Alica pco Sahab anwar Haren bow Sakeel canteen Yam coffee Shiwam kachaudi bhandar New mrk Raj Unity business centre Janak cool point Yadav hotel Yadav cool corner Amit cool corner Master tea stall Arsad cool corner Sambhu nath chaurasia Shyam nath pan bhandar Aggrawal stores Om namah siva general store Cool and coffee corner Shiwam kachaudi bhandar Deelip tea stall shyam kissan Ravi cool corner Umar cool corner R. k. caters

Tulsidas Tulsidas Tulsidas Tulsidas Tulsidas Tulsidas Nakkas Nakkas Mehandicross Jawahar nagar Jawahar nagar Jawahar nagar Buddhapark Buddhapark Buddhapark Shahmeena Shahmeena Shahmeena Shahmeena Shahmeena Shahmeena Janta nagar Medical collage Medical collage Medical collage Medical collage Medical collage Medical collage Medical collage

8896373765 9389024373

Yes Yes Yes

30 5 12 5 5 3 25 0 10 7 8 15 22 0 0 3 10 35 0 7 5 4 8 8 14 4 8 10 6

7 15 10 20 10 1 0 100 3 4 6 15 25 4 5 5 2 12 7 25 5 6 10 12 4 10 6 8 9

9335863129 9935531339 2651727 9655269244 9026884930 9336965762 9450643461

Yes NO Yes Yes Yes NO Yes Yes

9389480591 9838581050 9005677826 9336023753 9335907778 9721312493 9335822157 9506639814 9453315315 9505528714 8081433626 5226530828 9336965762 9453546785 9453313313 9336721648 9838145432 9453541830

Yes Yes NO Yes NO Yes NO Yes Yes Yes NO Yes NO No Yes NO Yes Yes

Route 2:- Ram ganj, Daulat ganj, Mufti ganj, Husainabad, Ahamadganj,
Musahibganj,Mohinipurva, Gagughat, Barafkhana

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

Golu general store Chotu general store Aamir general store fahim genaral store Mo.salim Aarif hogery Heena general store Mejbaan bakery Lucky general store Sachin general store Mufti general store taki general store Vivek general store Mani general store Sushil jaiswal kallu bhai pinwale Aslam general store Arsad general store Mehandi general store Madina general store N cool point Samma battery Meena battery Mohammed mujib farkan provisional store lakhan general store Mahfooz general store M hanif Aamir shop Chaurasia pan bhandar Safi general store Igris Atul general store

Ramganj Ramganj Ramganj Ramganj Ramganj Ramganj Ramganj Ramganj Daulatgang Daulatgang Daulatgang Daulatgang Daulatgang Daulatgang Daulatgang Muftigang Muftigang Muftigang Muftigang Muftigang Muftigang Hussainabad Hussainabad Hussainabad Hussainabad Hussainabad Hussainabad Hussainabad Hussainabad Hussainabad Hussainabad Ahmedganj Ahmedganj 9389933232 9235721564 9044849784 9335249588 9919491033 9883906591 9305240084 9795872034 9336422890 9696963413 9026365710 9305112382 9235296879 9236549668 9415197846 9936959007 9795928210 9305665699 9389668753 9919467417 9838631026

Yes Yes Yes No No Yes No No No No No No No No No No No No No No Yes No Yes Yes No Yes No No No No Yes No No

6 15 20 6 4 25 0 0 25 3 0 3 4 4 3 2 2 20 20 0 18 2 16 10 15 5 0 0 10 0 5 5 16

12 5 0 12 8 0 25 20 0 9 23 8 3 4 6 10 6 0 7 25 6 8 8 5 5 5 20 25 20 10 5 5 8

34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53

Rakesh general store Sujeet general store Singh general store Prashant cool corner Shiv misthan bhandar Brijesh T stall Sallu general store Baba general store Manoj general store Ajay kirana Bipin general store taki general store Ganga Dhaba Seraj general store A.G traders Gopi hotel Al mohammadia stall Jari materrial shop Tripathi general store Samara doodh dairy

Musahibganj Musahibganj Musahibganj Musahibganj Musahibganj Gaughat Gaughat Gaughat Gaughat Barafkhana Mohinipurva Mohinipurva Mohinipurva Mohinipurva Mohinipurva Mallahitola Barafkhana Barafkhana Barafkhana Barafkhana 9335287718 9235707454 9621232118 9369625112 9235721564 9305111210 9792761461 9794727965 9307721505 9936248254 9235166701 9839126554 9889719907 9307464934 9795487050

Yes Yes No Yes No No No Yes No No Yes No No No No Yes Yes No No No

12 10 4 20 0 7 20 12 8 6 3 3 8 7 5 4 6 2 4 4

6 10 8 10 15 7 10 6 8 6 9 6 4 7 5 7 6 4 8 4

Route 3:- Murmary toola, Convention centre, Kudiyaghat, Nimbu park, Lohiya
park, Lagpat nagar, Husainabad, Chhota imambada, Bada imambada

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 23 24 25 26

Sahu general store Royal caf Rita kachauri and coffee centre Maa Gomti PCO and cool corner Maa vaisnavi cool and hot centre Mata general and kirana store MB cool corner Maa bhojanalya Froot corner Maa Anandi stationary Anand Gift house sharma pco and confectionary tandon talk point Rahul cool corner Sahni store Channan Ram prasad pan bhandar Asim general store MM cool point Raju shree general store Abbas canteen raju general store Ankit general store banarsi misthan bhandar juice corner ramesh cool corner

Murmary toola Convention centre Convention centre kudiaghat kudiaghat kudiaghat kudiaghat nimbupark lohiyapark Lajpatnagar Lajpatnagar Lajpatnagar Lajpatnagar Lajpatnagar Lajpatnagar Lajpatnagar Lajpatnagar Hussainabad Hussainabad Hussainabad Hussainabad chotaimambada chotaimambada chotaimambada chotaimambada chotaimambada chotaimambada 9307378031 9307877374 9415788205 9936964138 9695057593 2253990 9307199273 9235160622 9795785576 9335262187 9305112030 9889053950 9305398819

No No Yes Yes Yes Yes No Yes No Yes No Yes No No No No No No No Yes Yes No Yes No Yes

10 10 25 20 18 40 30 0 5 8 15 25 10 20 0 3 5 7 8 15 20 6 2 10 12 20 12

10 10 10 5 6 0 0 40 4 10 15 0 10 0 30 12 6 7 8 5 2 6 8 10 15 10 15

salesme n@ 4000 Mon th Sale (%) No. of sales man 2 2 3 3 3 3 2 2 2 2 2 2 no.of loader

loader @ 3000 salary Sales man 8000 8000 12000 12000 12000 12000 8000 8000 8000 8000 8000 8000 127000

ROI WORKING FOR ZAIDI ASSOCITAES fuel cost@1 vechile 2.33 salary loader km fuel cost per km vechile manite nance 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 30000 mislle nious total expend iture 20272. 5 20272. 5 25690. 5 31690. 5 31690. 5 31690. 5 20272. 5 20272. 5 20272. 5 20272. 5 20272. 5 20272. 5 282942

volu me 50000 sale

Avg p/cs profit 15 TOTA L REVE NUE 7500 15000 60000 127500 180000 127500 60000 67500 52500 22500 22500 7500 750000 1935 000 Net profit Roi %

RGB SALE 325 2600 3900 4875 7800 5525 2925 1950 1300 650 325 325 32500

PET SALE 175 1400 2100 2625 4200 2975 1575 1050 700 350 175 175 17500

jan feb mar apr may jun jul aug sep oct nov dec

1% 2% 8% 17% 24% 17% 8% 9% 7% 3% 3% 1% 100%

2 2 2 4 4 4 2 2 2 2 2 2

6000 6000 6000 12000 12000 12000 6000 6000 6000 6000 6000 6000 90000

25 25 45 45 45 45 25 25 25 25 25 25

1747.5 1747.5 3145.5 3145.5 3145.5 3145.5 1747.5 1747.5 1747.5 1747.5 1747.5 1747.5 26562

2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 24000

500 1000 4000 8500 12000 8500 4000 4500 3500 1500 1500 500 50000

-12772.5 -5272.5 34309.5 95809.5 148310 95809.5 39727.5 47227.5 32227.5 2227.5 2227.5 -12772.5 467058

-0.66 -0.27 1.77 4.95 7.66 4.95 2.05 2.44 1.67 0.12 0.12 -0.66 24.14

4.2: INTERPRETATION-

AVAILABILITY OF BRANDS OF COCA-COLA

140 120 100 80 60 40 20 0

TOTAL COCA COLA THUMPS UP SHOPS Series1 127 127

SPRITE 125

COCA-COLA 112

MAAZA 107

KINLEY 78

LIMCA 73

FANTA 82

MMPO 39

In the total 127 coca-cola shops, the different brands thumps, sprite, coca- cola, mazza, kinley, limca, fanta, mmpo are present in this number 127,125,112,107,78,73,82,39 respectively.

NO. OF COCA-COLA SHOPS=127 TYPE OF OUTLETS

CON GRO E&D

12 43

72

In 127 shops, 72 shops are grocery, 43 shops are E&D and 12 shops are convenience.

NO.OF VISI AVALIABLE SHOPS IN COCA-COLA =89

12 10 8 6 10 4 2 0 VISI CONDITION CON Series1

In 127 coca-cola shops,89 shops(con=10,gro=47,E&D=32) are having the visi cooler.

PET SALE
350 1050 700 175 175 175 1400 2100 2625 4200

1575

2975

RGB SALE
8000 7000 6000 5000 4000 3000 2000 1000 0 325 2600 4875 3900 2925 1950 1300 650 325 325 jan feb mar apr may jun jul aug sep oct nov dec 5525 7800

jan feb mar apr may jun jul aug sep oct nov dec RGB SALE 325 2600 3900 4875 7800 5525 2925 1950 1300 650 325 325

1% 3% 3%

Sale(%)
1% 2% 8% 17% 7%

9% 8%

17%

24%

Net profit in different months

160000 140000 120000 100000 80000 60000 40000 20000 0 -20000 -40000

jan

feb mar apr may jun

jul

aug

sep

oct

nov dec

Net profit

TOTAL EXPENDITURE ( in month )

35000 30000 25000 20000 15000 10000 5000 0 jan feb mar apr may jun jul aug sep oct nov dec total expenditure, 20272.5

RETURN OF INVESTMENT (%)

9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 -1.00 -2.00 7.66 4.95 4.95 2.05 2.44 1.67 0.12 0.12 -0.66 jul aug sep oct nov dec

1.77 -0.66 -0.27 jan feb mar apr may jun

Roi % -0.6 -0.2 1.77 4.95 7.66 4.95 2.05 2.44 1.67 0.12 0.12 -0.6

8000 6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 11 12 RGB SALE RGB SALE PET SALE

The selling of RGB is more then the PET .

CHAPTER- 5

5.1: FINDINGS COCA-COLA is the market leader and the PEPSI is the market challenger in the major portion in the area where I surveyed The 57% market is covered by coca-cola and 43% is covered by PEPSI. In COCA-COLA, the most popular flavor in the market is THUMS UP and SPRITE. SPRITE has the fastest grown up brand in the clear lime segment in the recent years KINLEY was present in 61% outlets of the area, I surveyed. The product of COCA-COLA, MINUTE MAID PULPY ORANGE is yet not successful in that area. RTM has been very effective in the terms of market reach and distribution. Earlier company was covering just 50% of the outlets present in that area now after new design of routes they are targeting total 165 outlets. The marketing strategy of Advance Sales And Services Pvt Ltd depends on two types of distribution one is direct and another one indirect. The total number of outlets present in the area is 165. Out of 165 , Coca-Cola is present in 127 outlets. In 127 outlets ,Thumps up , Sprite, Coca-cola, Maaza, Limca, Fanta, MMPO, Kinley are present respectively in 127,125,112,107,73,82,39,78. In the market the supply of PEPSI is better than the COCA-COLA with more schemes and retailers preferred billing process. Many outlet owners have complaint on improperly working visi- cooler i.e. its cooling and repairing and with the time duration involved in installation of VISIcooler(i.e. more than15 days after the completion of all the paper work)

The sale of RGB is more the PET. March, April, May, June are the pick sale month of the soft drink industry. The selling of RGB is more then the PET.

Out of 127 outlets, 89 outlets are having visi cooler. Out of 89 outlets 46 are pure and 43 are impure. Out of 127 outlets 12 are convenient, 47 are grocery and 32 are eating and drinking outlets. In 12 convenient outlets 10 are having visi. Out of 10 only 7 outlets are pure. In 72 grocery outlets 47 are having visi. Out of 47 outlets 27 are pure In 43 E&D outlets 32 are having visi. Out of 32 only 12 are pure. VISI-coolers, in many shops, are filled with personal things instead of company`s products. Sometimes according to the demand, delivery of products are not made available in the outlets (supply of LIMCA and MAAZA have been complained more. Sales person are not well trained. In many areas retailers give more preference to the COCA-COLA products like THUMS UP, SPRITE, MAAZA, AND FANTA but due to absence of retailer friendly schemes and improper distribution they have to keep products of PEPSI. Advertisement materials are not available in the right time at the right place i.e. Different Channels like Grocery, Convenience, E&D. The stores are categorized on the basis of their sales, volume and channel. In many shops of the area where I surveyed there is no direct contacts of company with the retailers. In some area (Mushadganj, Muniopurwa, Husainabad, Barafkhana) retailers have to use their own vehicle because company`s or distributors vehicles are not visiting those areas The biggest threat of coca cola in the market is the distinctive BOTTEL exchanging strategy of PEPSI. I found that distributors are using fewer infrastructures than required. Some distributors are using drivers as sales man and as loader where driver as sales man is fine but when drivers are also working as loader it is making late start of distribution because when all the vehicles are loaded then only they start from Go down.

5.2: SUGESSTIONS The company must try to make all brands of Coca-Cola available at every retail outlet whether it is large or small, otherwise the consumer may go for substitute. Sales People and delivery persons should properly monitor the market whether stocks are available and are properly utilized in the market or not. Display material should be provided to the retailers on more regular basis to increase the sales level. Maintenance work of refrigerator; i.e. purity must be improved. Coca-cola can also adapt BOTTEL EXCHANGE strategy of PEPSI to provide more comfort for retailers. Market developer and Sales executives should be responsible for making retailers aware about the new schemes and their work should be monitored by respective departments. It can also be done by taking helps of Interns who are doing their projects but Sales Manager should also take this responsibility by using new technology for example SMS. Department heads should make sure that market developers and sales executive are visiting the areas regularly. For stopping SCHEME HIDING company should pay attention on the salary of market developer and sales executive. It will also help in improving VISI conditions.

5.3: Bibliography
The following things were helpful for the completion of the project:

Web Sites:
Cocacolaindia.com Cocacola.com Domain-b.com

JOURNELS: Marketing generals News papers

TEXT BOOK: Business Statistics J K Sharma

Marketing Management - Philip Kotler