A Project Report Study On

HORIZONTAL EXPANSION OF COCA COLA

Submitted in Partial Fulfillment Of Award Of Degree MBA (Master of Business Administration)

Submitted to: Fms maiet

Submitted by : Arvind Duwa

MAHARISHI ARVIND INSTITUTE OF ENGEENIAREING AND TECHNOLOGY

Declaration

I hereby that I have worked on the topic Analysis of Horizontal Expansion Strategy of Coke in Jaipur All the information that has been collected, analyzed and documented for the project is authentic possession to me. I would like to categorically mention that the work here has neither been purchased nor acquired by any other unfair means. The data and information existing in this report are accurate and update to the current data, to the best of our knowledge. However, for this purpose of the project, information already compiled in many sources has been utilized. All information in this report is true representation of what I have experienced during the project.

Arvind duwa

PREFACE
I feel great pleasure in doing my project Total project Management at the Distributor and Retailer Level of Hindustan Coca-Cola Beverages Pvt. Ltd. with Coca-Cola. Their whole hearted support enabled me to complete this project. This project is on Quality initiatives taken by Coca-Cola in pursuit of TQM Phase- III certification for the Kaladera Plant in Jaipur. In the I phase of the project I collected various samples from the Distributors and Retailers and surveyed the warehouses along various quality parameters with the help of questionnaires and observation method. In the second phase I analyzed the data generated in the I phase, generated report on its basis and presented the same to the quality department officials with the help of bar graphs, pie-charts and histograms.

Arvind duwa

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. Jagan (TRAINER), for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project.

I would also like to thank the supporting my college faculty MR. ANKUR RASTOGI for her help and cooperation throughout our project.

Arvind duwa

EXECUTIVE SUMMARY
Over the last few years, hundreds of companies have greatly improved their performance &the graph of growth through superior sales promotion services. Today many companies are building on these foundations and are tuning their products in Soft drink segment into a formidable competitive weapon. Sales Promotion services have become a subject of huge interest in recent years.

Sales Promotion Services is growing because: In the face of ever-increasing competition in organizations feel, it is important to build reliable & sustainable processes with focus on strong relationships with customers. Significant revenue & profit gains can be made from successful Sales Promotion Activities that improve efficiency & help serve customers better & faster.

The different distribution channels are as follows:" 1. Eating & Drinking 2.Convenience 3.Grocery Activation is the key part of Coca-Cola marketing strategy Company believes that soft drink sell is not a planned sell it's a impulse buying, and activation create impulse for buying For improvement of Coca-Cola market, a proper research work has done. Sales Promotion Strategies are offering new & better ways of addressing industries objectives. Coca-Cola has developed a unique sales promotion strategy that offer a unique way to increase the sales of the soft drink.

TABLE OF CONTENTS

1) Introduction to the Industry 2) Introduction to the Organization 3) Research Methodology i) Title of the Study ii) Duration of the project iii) Objective of the study iv) Types of research v) Sample size and method vi) Scope of the study vii) Limitation 4) Facts & Findings 5) Analysis & Interpretation 6) SWOT Analysis 7) Conclusion 8) Recommendations & Suggestion 9) Appendix 10) Bibliography

CHAPTER 1 INTRODUCTION OF INDUSTRY

INTRODUCTION
SOFT DRINK MARKET IN INDIA

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, the Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local operations in
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over 200 countries around the world. The basic proposition of the business is simple, solid and timeless. The company aims at bringing refreshment, value, joy and fun to its stakeholders, they successfully nurture particularly Coca-Cola. More than a billion times every day, thirsty people around the world reach for CocaCola products for refreshment. They deserve the highest qualityevery time. Our promise to deliver that quality is the most important promise we make. And it involves a worldwide, yet distinctively local, network of bottling partners, suppliers, distributors and retailers whose success is paramount to our own. Our investment in local communities in over 200 countries totals billions of dollars in jobs, facilities, and marketing, the purchase of local goods and services, and local business partnerships. Always and everywhere, we pursue continuous innovation in the products we offer, the processes we use to make them, the packages we develop and the ways we bring them to market. The Coca-Cola system is one of the most diverse organizations on earth, with a rich mosaic of talented colleagues who bring a variety of intellectual, professional, ethnic and cultural perspectives to our enterprise. They reflect the nations, cultures and languages of the world. Our policy is to foster an inclusive environment that encourages all employees to develop and perform to their fullest potential. Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending machines of more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company produces concentrate, which is then sold to licensed Coca-Cola 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. Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North
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and

protect brands,

America and western Europe. The Coca-Cola Company also sells concentrate for soda fountains to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee. In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The company has stated that it plans to remove E211 from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found.

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden, Louisiana. The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European coca wine. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca.The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.It was initially sold as a patent medicine for five cents[10] a glass at soda fountains, which were popular in the United States at the time due to the belief that

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carbonated water was good for the health.[ Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine,[14] Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholicson Charley Pemberton began selling his own version of the product. John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

Old German Coca-Cola bottle opener In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia.[19]
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Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset stomach. New Coke

One of Coke's ads to promote the flavor change. On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula, under the name Coca-Cola Classic on July 10, 1985. 21st century On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose, the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium.[25] In 2007, Coca-Cola began to

12

sell a new "healthy soda": Diet Coke with vitamins B 6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus." On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke. Use of stimulants in formula When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl ecgonine) and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes). Coca cocaine Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola did once contain an estimated nine milligrams of cocaine per glass, but in 1903 it was removedCoca-Cola still contains coca flavoring. After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves the leftovers of the cocaine-extraction process with cocaine trace levels left over at a molecular level. To this day, Coca-Cola uses as an ingredient a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.

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In the United States, Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant, which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis, Missouri pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use. Kola nuts caffeine Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including CaffeineKola nuts contain about 2 percent to 3.5 percent caffeine, are of bitter flavor and are commonly used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently, in 1912 the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label. Coca-Cola contains 46 mg of caffeine per 12 fluid ounces, while Caffeine-Free CocaCola and Diet Coke Caffeine-Free contain 0 mg.

Production

Coca-Cola 375 mL 24 can pack (AU) Ingredients

Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine Phosphoric acid v. Caramel (E150d)

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Natural flavorings

A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories. Formula of natural flavorings Main article: Coca-Cola formula The exact formula of Coca-Cola's natural flavorings (but not its other ingredients which are listed on the side of the bottle or can) is a trade secret. The original copy of the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919. A popular myth states that only two executives have access to the formula, with each executive having only half the formulaThe truth is that while CocaCola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process. On February 11, 2011 Ira Glass revealed on his PRI radio show, This American Life, that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found basically matched the formula found in Pemberton's diary. Franchised production model The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company".

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Brand portfolio Name Launched Discontinued Notes The original version of Coca-Cola. The caffeine free Picture

Coca-Cola

1886

Caffeine-Free Coca-Cola

1983

version of Coca-Cola.

New Coke/"Coca-Cola II"

1985 2002 Still available in Yap and American Samoa Still available in: American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France,

Coca-Cola with Lemon

2001 2005 Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, Norway, Runion,

Singapore, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza Coca- 2002 2005 Still Cola Vanilla available in: Austria, Australia, China, Germany, Hong Kong, New Zealand (600 mL

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only) Malaysia, Sweden (Imported) and Russia. Was called "Vanilla Coca-Cola (Vanilla Coke)" during initial U.S. availability.

20 It

was

07 reintrodu ced June 2007 by in

popular demand

Co 20 20 Wa ca- 03 07 s Co la C2 onl y av ail abl e in Ja pa

17

n, Ca na da, an d the Un ite d St ate s.

Available Coca-Cola with Lime

in

Belgium,

Netherlands,

2005 Singapore, Canada, the United Kingdom, and the United States.

Coca-ColaJune End Was Raspberry 2005 of only

2005 available in New

Zealand.

Coca-Cola Zero

2005 Only available in Federation of Bosnia and

Coca-Cola M5

2005 Herzegovina, Germany, Italy, Spain, Mexico and Brazil

Coca- 2006 Middle Was Cola Black Cherry of replaced

2007 by Vanilla

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Vanilla

Coke in June 2007

Co 20 Be On ca- 06 gin ly Co la Bl k nin av g ail of abl 20 e 08 in the Un ite d St ate s, Fra nc e, Ca na da, Cz ec h Re pu bli c, Slo va k

19

Re pu bli c, Fe der ati on of Bo sni a an d He rze go vin a, Bul gar ia an d Lit hu ani a

Co 20 ca- 06 Co la Cit

On ly av ail abl

20

ra

e in Fe der ati on of Bo sni a an d He rze go vin a, Ne w Ze ala nd an d Ja pa n.

Coca-Cola Light Sango Coca-Cola Orange

2006 Only available in France and Belgium.

2007 Only available in the United Kingdom and Gibraltar. In Germany, Austria and Switzerland it's sold unter the label

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Mezzo Mix.

Logo design

Detail on Elmira Coca-Cola Bottling Plant, Elmira, NY. The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885.[50] Robinson came up with the name and chose the logo's distinctive cursive script. The typeface used, known as Spencerian script, was developed in the mid 19th century and was the dominant form of formal handwriting in the United States during that period. Robinson also played a significant role in early Coca-Cola advertising. His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs Contour bottle design

Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle.

The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts.

2 Litre bottle label The equally famous Coca-Cola bottle, called the "contour bottle" within the company, but known to some as the "hobble skirt" bottle, was created by bottle designer Earl

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R. Dean. In 1915, the Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for the beverage that would distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was."[52] Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana, turned the project over to members of his supervisory staff, including company auditor T. Clyde Edwards, plant superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to find any information about coca or kola. Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopedia Britannica. Dean made a rough sketch of the pod and returned back to the plant to show Mr. Root. He explained to Root how he could transform the shape of the pod into a bottle. Chapman Root gave Dean his approval. Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24 hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean then proceeded to create a bottle mold and produced a small number of bottles before the glass-molding machinery was turned off. Chapman Root approved the prototype bottle and a design patent was issued on the bottle in November, 1915. The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen over other entries and was on the market the same year. By 1920, the contour bottle became the standard for the Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!". As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the

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Owens-Illinois Glass Company bought out the Root Glass Company in the mid1930s. Dean went on to work in other Midwestern glass factories. Although endorsed by some[this version of events is not considered authoritative by many[who consider it implausible. One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while Loewy did serve as a designer of Coke cans and bottles in later years, he was in the French Army the year the bottle was invented and did not emigrate to the United States until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to a Victorian hooped dress. In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to articulate the doctrine of strict liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case in U.S. law today.[56] In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous bottle, on a few test markets, including Terre Haute, Indiana. The new can has never been widely released. A new slim and tall can began to appear in Australia as of December 20, 2006; it cost AU$1.95. The cans have a distinct resemblance to energy drink cans. The cans were commissioned by Domino's Pizza and are available exclusively at their restaurants. In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling, removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this is merely a name change and the product remains the same. The cans still bear the "Classic" logo in the United States. In 2007, Coca-Cola introduced an aluminum can designed to look like the original glass Coca-Cola bottles. In 2007, the company's logo on cans and bottles changed. The cans and bottles retained the red color and familiar typeface, but the design was simplified, leaving only the logo and a plain white swirl (the "dynamic ribbon").

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In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including the larger 1.5- and 2-liter bottles) was changed to include a new plastic screw cap and a slightly taller contoured bottle shape, designed to evoke the old glass bottles. Coke Mini

200 mL "stubby" bottle widely available throughout China. These are sold in small shops for 1 yuan, and must be consumed on site in order to return the bottle. Coke mini is a 7.5 ounce can packaging of Coca-Cola that debuted in December 2009.[59][60][61] There are plans to also sell smaller cans of Sprite, Fanta Orange, Cherry Coca-Cola and Barq's Root Beer. Designer bottles Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles for Coca-Cola. Lagerfeld is not the first fashion designer to create a special version of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by fashion designers for Coca Cola Light soda have been created in the last few years. In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of the recognizable contour bottle. Well known Italian designers Alberta Ferretti, Blumarine, Etro, Fendi, Marni, Missoni, Moschino, and Versace each designed limited edition bottles.

Local competitors Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around the world, some local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in Mexico, is a fast-growing competitor to Coca-Cola.[64] On the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led

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The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in IndiaTropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future cola is a competitor. In Slovenia, the locally produced Cockta is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive competitor. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on the Portuguese island of Madeira. Coca-Cola has stated that Pepsi was not its main rival in the UK, but rather Robinsons drinks.

Advertising

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The ad is titled Drink Coca-Cola 5. (US)

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Coca-Cola ghost sign in Fort Dodge, Iowa. Note older Coca-Cola ghosts behind Borax and telephone ads.

Coca-Cola signboard in Lahore, Pakistan.

Coca-Cola sales booth on the Cape Verde island of Fogo in 2004. Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common.[69][70] Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915.[71][72] Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman. 1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola".[73] In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single. Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born. Some of the memorable Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST

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19361950, WAGA 19511959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for CocaCola featured movie stars, sports heroes and popular singers. During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "fifty percent of the participants who said they preferred Coke actually chose the Pepsi." Statisticians were quick to point out the problematic nature of a 50/50 result: most likely, all the taste tests really showed was that in blind tests, most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market. Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles.[74] The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images in many of its films. After a few early successes during CocaCola's ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989. Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes," "I'd like to buy the world a Coke," and "Coke is it" (see Coca-Cola slogans). In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries

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Holiday campaigns

Coca-Cola Christmas truck in Dresden, Germany. The "Holidays are coming!" advertisement features a train of red delivery trucks, emblazoned with the Coca-Cola name and decorated with Christmas lights, driving through a snowy landscape and causing everything that they pass to light up and people to watch as they pass through. The advertisement fell into disuse in 2001, as the Coca-Cola company restructured its advertising campaigns so that advertising around the world was produced locally in each country, rather than centrally in the company's headquarters in Atlanta, Georgia. However, in 2007, the company brought back the campaign after, according to the company, many consumers telephoned its information center saying that they considered it to mark the beginning of Christmas.[76] The advertisement was created by U.S. advertising agency Doner, and has been part of the company's global advertising campaign for many years. Keith Law, a producer and writer of commercials for Belfast CityBeat, was not convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying that "I don't think there's anything Christmassy about HGVs and the commercial is too generic. In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a single, Wonderful Dream (Holidays are Coming), which entered the pop-music charts in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to radio, employing several variations of the jingle.[82] Sports sponsorship

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Special aluminum bottle designs, designed exclusively for the Vancouver 2010 Olympic Winter Games Torch Relay. Available in Canada. Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in Amsterdam, and has been an Olympics sponsor ever since. [83] This corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Most recently, Coca-Cola has released localized commercials for the 2010 Olympics in Vancouver; one Canadian commercial referred to Canada's hockey heritage and was modified after Canada won the gold medal game on February 28, 2010 by changing the ending line of the commercial to say "Now they know whose game they're playing".[84] Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other competitions organized by FIFA. In fact, one FIFA tournament trophy, the FIFA World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called "FIFA Coca Cola Cup".[85] In addition, Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor Speedway in Concord, North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, National Basketball Association and the National Hockey League, as well as with many teams within those leagues. Coca-Cola is the official soft drink of many collegiate football teams throughout the nation. Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi Daredevils in Indian Premier League. In England, Coca-Cola is the main sponsor of The Football League, a name given to the three professional divisions below the Premier League in football (soccer). It is also responsible for the renaming of these divisions until the advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans, who see it as farcical that the third tier of English Football is now called "League One." In 2005, Coca-Cola launched a competition for

30

the 72 clubs of the football league it was called "Win a Player". This allowed fans to place 1 vote per day for their beloved club, with 1 entry being chosen at random earning 250,000 for the club; this was repeated in 2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions, Leeds United AFC had the most votes by more than double, yet they did not win any money to spend on a new player for the club. In 2007, the competition changed to "Buy a Player". This competition allowed fans to buy a bottle of Coca-Cola Zero or CocaCola and submit the code on the wrapper on the Coca-Cola website {www.cocacolafootball.co.uk}. This code could then earn anything from 50p to 100,000 for a club of their choice. This competition was favored over the old "Win A Player" competition, as it allowed all clubs to win some money. Introduced March 1, 2010, in Canada, to celebrate the 2010 Olympics, Coca Cola will sell gold colored cans in packs of 12 355 mL each, in select stores.[86] In mass media Coca-Cola has been prominently featured in countless films and television programs. It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must Be Crazy. It provides a setting for comical corporate shenanigans in the novel Syrup by Maxx Barry. And in music, in the Beatles' song, "Come Together", the lyrics said, "He shoot Coca-Cola, he say..." Health effects Since studies indicate "soda and sweetened drinks are the main source of calories in [the] American diet",[87] most nutritionists advise that Coca-Cola and other soft drinks can be harmful if consumed excessively, particularly to young children whose soft drink consumption competes with, rather than complements, a balanced diet. Studies have shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A.[88] The drink has also aroused criticism for its use of caffeine, which can cause physical dependence.[89] A link has been shown between long-term regular cola intake and osteoporosis in older women (but not men).[90] This was thought to be due to the presence of phosphoric acid, and the risk was found to be same for caffeinated and noncaffeinated colas, as well as the same for diet and sugared colas.

31

A common criticism of Coke based on its allegedly toxic acidity levels has been found to be baseless by researchers; lawsuits based on these notions have been dismissed by several American courts for this reason. Although numerous court cases have been filed against The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is dangerous, no evidence corroborating this claim has been found. Under normal conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm.[91] Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS) as an ingredient. Originally it was used in combination with more expensive canesugar, but by late 1984 the formulation was sweetened entirely with HFCS. Some nutritionists caution against consumption of HFCS because it may aggravate obesity and type-2 diabetes more than cane sugar.[92] Also, a 2009 study found that almost half of tested samples of commercial HFCS contained mercury, a toxic substance. In India, there is a major controversy whether there are pesticides and other harmful chemicals in bottled products, including Coca-Cola. In 2003 the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer and a breakdown of the immune system. CSE found that the Indian produced Pepsi's soft drink products had 36 times the level of pesticide residues permitted under European Union regulations; Coca-Cola's soft drink was found to have 30 times the permitted amount. CSE said it had tested the same products sold in the U.S. and found no such residues.[94] After the pesticide allegations were made in 2003, Coca-Cola sales in India declined by 15 percent. In 2004 an Indian parliamentary committee backed up CSE's findings and a government-appointed committee was tasked with developing the world's first pesticide standards for soft drinks. The Coca-Cola Company has responded that its plants filter water to remove potential contaminants and that its products are tested for pesticides and must meet minimum health standards before they are distributed.[95] In the Indian state of Kerala sale and production of Coca-Cola, along with other soft drinks, was initially banned after the allegations, until the High Court in Kerala overturned ruled that only the federal government can ban food products. Coca-Cola has also been accused of excessive water usage in India.[96]
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The 2008 Ig Nobel Prize (a parody of the Nobel Prizes) in Chemistry was awarded to Sheree Umpierre, Joseph Hill, and Deborah Anderson, for discovering that CocaCola is an effective spermicide, and to C.Y. Hong, C.C. Shieh, P. Wu, and B.N. Chiang for proving it is not. Criticism Main article: Criticism of Coca-Cola Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children, exploitative labor practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labor, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists.[100] Use as political and corporate symbol

Coca-Cola advertising in the High Atlas mountains in Morocco.

Coke dispenser flown aboard the Space Shuttle in 1996. (US) The Coca-Cola drink has a high degree of identification with the United States, being considered by some an "American Brand" or as an item representing America. The identification with the spread of American culture has led to the pun "CocaColanization". The drink is also often a metonym for the Coca-Cola Company.

33

There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's early investment in Israel during the Arab League boycott of Israel (its competitor Pepsi stayed out of Israel).[102] Mecca Cola and Pepsi have been successful alternatives in the Middle East. A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus2 or FGBA-2) was developed for use on the Space Shuttle as "a test bed to determine if carbonated beverages can be produced from separately stored carbon dioxide, water and flavored syrups and determine if the resulting fluids can be made available for consumption without bubble nucleation and resulting foam formation". The unit flew in 1996 aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet Coke.[103]

34

SPEECH BY CHAIRMAN
Our workplace must be a place where everyone's ideas and contributions are valued. Our employees deserve equal treatment under our policies governing compensation, advancement, health, safety and other aspects of workplace life. We understand that fairness in the workplace, coupled with the opportunity to develop individual capabilities, fosters our collective success. Responsible stewardship of the environment is a top priority for The Coca-Cola Company. By preserving and enhancing our natural world, we brighten the future for our planet and for each other. We put this principle into practice through The CocaCola Environmental Management System, known as eKOsystem. We operate our business as stewards of the environment, with a commitment to continually move our business toward sustainability: striving to consume fewer natural resources, and to recover and reuse resources more extensively. Our commitment to protect the environment extends throughout our organization, involving officers, managers and employees at all levels. We are accountable for our actions, conducting assessments of our environmental performance and taking action toward continuous improvement in all that we do. Society advances on the strength of community: people sharing their ideas and resources to reach common goals. We seek to strengthen local communities worldwide through our support for education, through partnerships with other organizations and through acts of citizenship by the people of Coca-Cola. We support education because of its power to expand opportunities for individuals and increase understanding between cultures. We partner with national and international organizations to alleviate economic disadvantage and help improve the quality of life in local communities. Together with our local bottling partners, we strengthen communities by giving with our hands and our hearts, as partners in the promise of a better life. There's never been a better time to be a part of The Coca-Cola Company. Our people are dedicated to strengthening relationships with stakeholders and

35

communities.

The Coca-Cola Company E.neville Isdell leads The Coca-Cola Company into the new century with a firm commitment to the values and spirit of the world's greatest brand. He was elected chairman and chief executive officer in February 2000 and is the 11th person in the history of the Company to hold this title.

Under E.neville Isdell leadership, we have positioned The Coca-Cola Company for growth, guided by our mission to provide branded beverages that refresh people around the world, anywhere, any time, everyday. By moving key decision-making closer to local markets, we have spurred innovation, accelerated growth and fostered deeper connections to consumers. Simply put, we are closer than ever to you. A talented and highly experienced worldwide management team coordinates our new, nimble and entrepreneurial network.

Across more than 200 countries ... more than 100 languages ... a multitude of cultures and geographies, The Coca-Cola Company strives to be a special part of people's lives. This privilege comes with a responsibility. We have chosen to take a leadership role, knowing that our differences make us stronger in our business and in our communities - each and every day. We embrace our commitment to diversity in all its forms at The Coca-Cola Company as a core value. Diversity - of race, gender, sexual orientation, ideas, ways of living, cultures and business practices - provides the creativity and innovation essential to our economic well-being. Equally important is a highly motivated, healthy and productive workforce that achieves business success through superior execution and superb customer satisfaction. In today's volatile economic environment, this kind of performance requires unprecedented commitment to the principles of integrity and leadership. We are intent on keeping that commitment.

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Although Coca-Cola was first created in the United States, it quickly became popular wherever it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama, soon followed by many more. Today, we produce nearly 400 brands in over 200 countries. More than 70 percent of our income comes from outside the U.S., but the real reason we are a truly global company is that our products meet the varied taste preferences of consumers everywhere.

Bottling One of our great strengths is our ability to conduct business on a worldwide scale while maintaining a local approach. At the heart of this approach is our bottling system.

Before any one of our nearly 400 brands is consumed by anybody around the world, it has to be produced, packaged and distributed. Since we reach six billion consumers in over 200 countries, our bottling system has to be the best.

Our bottling partners are local companies - some independently owned, some partially owned by The Coca-Cola Company - so they are rooted in their communities, thinking and acting locally. They are employers, purchasers of local goods and services, good neighbors, and, of course, producers of the world's most popular beverages. It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance, boats transport Coca-Cola and our other brands between the many hundreds of islands that make up that nation. In the Amazon, where the main road is often the river itself, water-borne distribution is also common. In some of the higher elevations of the Andes, Coca-Cola is sometimes transported by four-legged power. Across much of Africa, bottlers deliver to thousands of family-run kiosks and home-based stores on which local economies depend. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.

37

Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that CocaCola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass

manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval.

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1920s Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and '30s International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries 1940s Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26ounce versions. Cans were also introduced, becoming generally available in 1960.

1960s New brands introduced Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERaDE and Fruitopia in the 1990s.

1970s and '80s Consolidation to serve customers

39

As technology led to a global economy, retail customers of The Coca-Cola Company merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.

1990s New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

21st Century Think local, act local The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows. MARKET STRATEGY OF COCA COLA Our local marketing strategy enables Coke to listen to all the voices around the world skiing for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of which they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends

40

around the world, and we never forget it. Now if we talk about India. Coke has its focus on the youth market in India. Real example of it is that they present their product by star cricketer and bollywood stars to get the attention of youth. But now a days coca cola is moving to rural market because it is the real market of India. When Amir Khan started advertisement of coca cola and the tag line of this adds thanda matlab coca cola was directly targeted rural area. And the

current situation is that they are very much successful in this target. COCA COLA CLOSE TO PEOPLE The heart and soul of our enterprise have always been our people. Over the past century, Coca-Cola people have led our success by living and working with a consistent set of ideals. While the world and our business will continue to change rapidly, respecting these ideals will continue to be essential to our long-term success. Nothing is more important to our success than integrity. This begins with insisting on absolute quality for every one of our products, and acting with a strong sense of accountability in everything we do. Coca-Cola people have always known that building and nurturing our relationships with other people and the world around us is an essential part of our work. No matter how big or complex our business becomes, we must always demonstrate complete respect for each other. As the world becomes more interconnected, yet more firmly rooted in local pride, recognition of our interdependence with our stakeholders becomes even more essential. A large part of our relationship with the world around us is our relationship with the physical world. While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our businesses. As we have expanded over the decades, our company has benefited from the various cultural insights and perspectives of the societies in which we do business. Much of our future success will depend on our ability to develop a worldwide team that is rich in its diversity of thinking, perspectives, backgrounds and culture. Coca-

41

Cola is the world's most inclusive brand, and Coca-Cola must also be the world's most inclusive company.

COCA COLA GUIDING PRINCIPLE FOR CITIZENSHIP We will adhere to the highest ethical standards, knowing that the quality of our products, the integrity of our brands and the dedication of our people build trust and strengthen relationships.

We will serve the people who enjoy our brands through innovation, superb customer service, and respect for the unique customs and cultures in the communities where we do business. :::: Enrich the workplace:::: We will treat each other with dignity, fairness and respect. We will foster an inclusive environment that encourages all employees to develop and perform to their fullest potential, consistent with a commitment to human rights in our workplace. The Coca-Cola workplace will be a place where everyone's ideas and contributions are valued, and where responsibility and accountability are encouraged and rewarded.

:::: Preserve the environment :::: Our approach to environmental issues is guided by a simple principle: We will conduct our business in ways that protect, preserve and enhance the environment. The Coca-Cola eKO System translates this principle into action by establishing a framework for successfully managing our environmental performance worldwide. :::: Strengthen the community::::

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We will seek to improve the quality of life through locally-relevant initiatives wherever we do business.

Coca-Cola in India - Products & Quality Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the Company's international family of brands including Coca-Cola, Diet Coke, Sprite and Fanta, plus the Schweppes product range. Our Kinley water brand was launched in 2000 In 2001, our energy drink Shock and our first powdered concentrate, Sunfill, hit the market Annual per capita consumption of soft drinks in India is nine 8-ounce servings In early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of the Year awards for the Thanda Matlab Coca-Cola all-media campaign In early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of the Year awards for the Thanda Matlab Coca-Cola all-media campaign The Coca-Cola system adheres not only to national laws on food processing and labeling, but also to our own strict standards for exceptional quality In everything we do, from the selection of ingredients to the production of our beverages and their delivery to the marketplace, we use our specialised quality management system, The Coca-Cola Quality System, to ensure that we are offering consumers only the highest quality products We monitor our success through our customer and consumer feedback and our in-trade monitoring programmes, and this information enables us to continuously improve our already demanding systems. From source water to soft drink bottle
A t T h e C o c a - C o l a o u r C o m p a n y , a c c e p t e d

t h r o u g h a n d

g l o b a l l y

v a l i d a t e d a n d

m a n u f a c t u r i n g

p r o c e s s e s

Q u a l i t y

43

M a n a g e m e n t e n s u r e t h a t

S y s t e m s , o u r

w e

m a n u f a c t u r i n g e q u i p p e d c o n s u m e r p o s s i b l e e a c h y o u a n d t o

f a c i l i t i e s t h e

a r e

p r o v i d e t h e

w i t h

h i g h e s t

q u a l i t y L e t t h e u s

b e v e r a g e n o w t a k e

t i m e . t h r o u g h Q u a l i t y

p r o c e s s e s

A s s u r a n c e f o l l o w e d b y o u r

P r o g r a m m e s w o r l d - c l a s s f a c i l i t i e s i n

m a n u f a c t u r i n g I n d i a .

Even before the plant is constructed, the site is selected based on the availability of source water meeting the potability quality standards. At all our carbonated and noncarbonated soft drink manufacturing locations, the source water is tested for all requirements of potable drinking water. The analysis is always conducted by independent third party accredited laboratories. The source water is then properly protected and re-tested periodically to ensure conformance to potability standards. The water is then drawn through sealed pipelines into the storage tanks in secured water treatment areas of the manufacturing plant.. 1. The first step in the manufacturing of soft drinks is the disinfection of water using the globally approved procedure of chlorination. This treatment ensures the destruction of microorganisms including pathogens and oxidation of heavy metal ions and organic impurities.

2. The second step is the filtration at the molecular level, which is achieved either by coagulation/flocculation or reverse osmosis. Contaminants commonly removed by this process include:

Dirt, clay and any other suspended matter in the water. Microbial matter (including bacteria, yeast, moulds, virus, protozoa).

44

Heavy metals and compounds which may cause an off-taste When coagulation/flocculation is used, colloidal materials and

suspended particles are removed by settling plus enhanced filtration through multi-media. If needed, alkalinity reduction may also be achieved by lime softening or ion exchange filters. 3. The third step to stop potential contaminants is water purification using granular activated carbon filters. The granular activated carbon, with its large and porous surface area, ensures effective removal of trace levels of organic compounds (including pesticides and herbicides), colour, off-taste and odourcausing compounds using the principle of absorption. 4. T h e l a s t s t e p i s p o l i s h i n g i s

f i l t r a t i o n , p a s s i n g h i g h

w h i c h

w a t e r

t h r o u g h 5 - m i c r o n e v e r y i s

e f f i c i e n c y t o

f i l t e r s d r o p f r e e o f

e n s u r e

t r e a t e d a n y

w a t e r

f r o m

a c t i v a t e d a n d i s s a f e

c a r b o n f o r u s e

f i n e s i n t o

5. S i m i l a r n o r m s b u y

t h e f o r

s t r i n g e n t w a t e r , s u g a r m i l l s w e f r o m i n

u s e d

h i g h - g r a d e

a u t h o r i z e d I n d i a w i t h a a n d

s u g a r t h i s i s

t r e a t e d

g l o b a l l y

a c c l a i m e d w h i c h

c a r b o n r e m o v e s a n d i s

t r e a t m e n t a n y

i m p u r i t i e s u s e d o f f o r t h e

t h e n

p r e p a r a t i o n s u g a r s y r u p t h e s y r u p . i s

p u r i f i e d s u g a r w i t h

T h i s

t h e n d r i n k

b l e n d e d

s o f t

c o n c e n t r a t e .

45

Carbon-dioxide from authorised suppliers meeting international purity standards is procured, which goes through stringent quality control checks before being used in the beverage process. The three ingredients of syrup, treated water and carbon-dioxide are blended as per The Coca-Cola Company's specifications. The glass bottles returned from the market are thoroughly cleaned and sanitised with specially formulated cleaning agents at high temperature that use sophisticated state-of-the-art Bottle Washers or Bottle Rinsers (in case of PET). These bottles are then transported to the filler using a fully automated conveyor system after a thorough visual inspection. The beverage is then filled into glass containers or virgin food grade PET bottles using a high-speed automated filling machine. The entire filling operation is fully automated and untouched by human hands. The bottles are finally capped/crowned, date coded and packed into crates/cartons to make them available to our consumers.

The complete manufacturing process has a well defined and structured Quality Control and Assurance Programme. All the manufacturing facilities employ qualified, experienced and trained professionals for manufacturing and testing of our products.

Routine tests carried out by bottling operations and external laboratories:

An employee operates a proportioner, where the syrup, carbon-dioxide and water are blended.

Analysts

examine

water

samples

using

UV

spectrophotometer.

All the bottling facilities follow the Good Manufacturing Practices requirements as applicable to the food industry. All manufacturing equipments fulfills the stringent requirements of GMP and sanitary design.

46

The entire quality management system of each plant is documented, managed and continually improved through a world-wide accepted system of TCCQS (The CocaCola Quality System). The Company also has a strong internal audit system to monitor compliance to international and local standards. The manufacturing facilities also get audited by accredited external audit agencies against quality management standards.This internal checks and balances system works virtually in every aspect of our business and gives us the confidence to reassure our promise to consumers every day. At The Coca-Cola Company, we are committed to delivering high quality products to our customers and consumers throughout the globe. Each and every time. Pr No oc . of es tes s ts pa ra me ter

1 Wa71 ter

2 Wa68 ter Tre at me nt & Au xili

47

ary Ch em ica ls

3 CO50 2

4 Su 13 gar

5 Syr17 up

6 Pa 25 ck agi ng Ma teri al

7 Co 17 nta ine r Wa shi ng

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8 Fin 18 ish ed Pr od uct

9 Ma 15 rke t sa mp les

10 External

Lab147

TO 44 TA 1 L

The Power of knowledge

O n e

o f

I n d i a ' s

g r e a t e s t i s b o t h a

m a l a d i e s , c a u s e a n d

p o v e r t y , e f f e c t a n d o f

p o o r

e d u c a t i o n i l l i t e r a c y . a c t i v e l y e f f o r t s

w i d e s p r e a d I n d i a

C o c a - C o l a

s u p p o r t s t o e x t e n d

g o v e r n m e n t

e d u c a t i o n a l

o p p o r t u n i t i e s s e c t i o n s

t o o f

u n d e r p r i v i l e g e d
49

s o c i e t y ,

f o r m i n g w i t h l o c a l n o n -

p a r t n e r s h i p s g o v e r n m e n t a l ( N G O s ) a d d r e s s a n d t h e

o r g a n i s a t i o n s t o

c o m m u n i t i e s i s s u e .

This has resulted in a variety of educational initiatives in slums and villages, including non-formal education, remedial education, vocational training, and IT training. Several of India's leading NGOs - including Child Relief and You (CRY), Pratham, Prayas, Naandi Foundation and Literacy India - help identify areas lacking in primary educational facilities. NGOs design the projects so they require minimum recurring expenses, and help ensure community participation. Coca-Cola serves as the overall project facilitator and provides financial support and continuous supervision, and employees also volunteer their time and resources. Communities contribute infrastructure and daily supervision and also form self-help groups, nominating volunteers to help lead classes. The various initiatives have included support towards eight Jagriti

(Awakening) Learning Centres (JLCs), which provide educational resources and opportunities for nearly 2,000 underprivileged primary school children in areas near Coca-Cola offices and bottling plants. The Company is also working with community leaders to put on street plays on themes of community awareness, such as a series in 50 villages in Gurgaon that reached almost 500,000 villagers. Cola and the Battle for Safe Water Water harvesting is the buzzword. Millions of rupees are being sunk to promote water harvesting. And at the same time, licenses are being issued to private companies to not only exploit ground water but to go in for 'water mining'. In the past few years, for instance, the number of golf courses has multiplied in and around the

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major metros in India and at the same time more and more bottling plants for softdrinks are being set up. The basic objective being very clear: let the average consumer conserve water for the benefit (and luxury) of the rich and the elite! In India, as the prestigious fortnightly Down to Earth estimates that the ever-swelling numbers of urban consumers who are hitting the (soft-drink) bottle and the increasing ability of the beverage manufacturers to penetrate the rural market have ensured that sales and revenues head north. According to market sources, the softdrink industry was estimated at 6.5 billion bottles in the year 2000 and volumes have been increasing at 14-15 per cent per annum since then. "An international soft drink association put the market size of the soft-drink sector in India at about 1.4 billion litres in 1998. Producing this quantity would require a staggering 5.6 billion litres of water. Most of this is extracted from groundwater resources. Assuming that the per capita consumption of water is 30 litres per day, the water consumed annually by the soft-drink industry is enough to meet the water needs of more then 5 lakh people (say, for the district of Bolangir in Orissa, which is chronically drought hit) for a year." In Kerala, marketed by the State tourism as God's own country, an NGO "Jananeethi" is waging a lone battle against the excessive extraction of groundwater and the resulting deterioration of water quality caused by Hindustan Coca-Cola Beverages Pvt Ltd -- a local unit of the multinational soft-drink giant. The resulting impact on agriculture in the region has been very well documented.

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Distribution Network

Mansarovar Vidhyadharnagar Shastrinagar Malviya Nagar Adarsh Nagar Tonk road Ajmer Puliya Banipark Station road M D road Dadi ka Phatak Jhotwara

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DISTRIBUTION PROCESS

The Coca-Cola soft drinks are produced in the Plants at Kaladera. Here products are supplied to the warehouse. From warehouse; the products are distributed through direct & indirect routes.

Direct Routes: Means direct supply from producer to supplier.

Indirect Routes: Indirect routes are those in which the products are supplied to the distributors appointed to the different areas. The distributors then distribute products in their own trucks or tampoos to the retailers. Finally retailers serve the products to the factory

PRODUCTION PROCESS

INGREDIENT DELIVERY Ingredients are not the only things delivered to the plant. Other materials such as bottles, canes, labels & packaging are also delivered. Many plants outside the United States use refillable bottles for economic reasons, while in the United States they do not. When bottles & canes are delivered to the plant, they are carefully inspected to ensure that they meet our exacting standards. One these have passed initial inspection, they move on to be washes and/or rinsed. SWEETNER Supplied by selected producers, a variety of sweeteners plays a central role in creating in our beverages. Sweetener vary by location & range from sucrose (table sugar) and high-fructose starch syrup to low calorie products such as aspartame,

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which is often use in the USA with diet beverages and acesulfame-K, which is often soused in European countries with light beverages. WATER Since water is key component to all our beverages, its quality is critical. Since public water quality varies around the world. Each plant further treats the water it uses. This means that before water is added to any of our bev erages, its rigorously filtered & cleanses. We then continuously sample the water to ensure it meets our standards.

WASHING & RINSING To ensure quality, each bottle is washed, sanitized & rinsed before being filled. While this sounds simple, the actual steps can differ per bottling plant. Outside the United States many plants use refillable glass or plastic bottles. To be ensuring they meet our cleanliness standards, bottles are first hit with pre-rinse jet which removes any dirt or debris. They are then soaked in a high temperature deep cleaning solution that removes any remaining direct and sanitizes them. The bottles then moves to hydro wash where they are washed again with a deep cleaning pressure spray. Finally, the bottles are rinsed with cooling water jets before being visually and/or electronically inspected. In the United States, we primarily use new bottles, not refillable once. This allows the washing & rinsing steps to move much more quickly. MIXING & BLENDING H2O: Mixing & blending begins eighth the simple step of mixing pure water with refined sugar, which creates simple syrup. While in some countries measuring the correct amount of sugar is done by batch, in many North America and European plants measurements are made using continuous blending systems. SECRET FORMULA Our secret formula is.still secret! That right, the secret formula remains a mystery to the millions of people in nearly 200 countries who enjoy our refreshing beverages

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every day. Even through cannot tell you the secret, you can be sure that Life Tastes Good with Coca-Cola.

H2O & SYRUP Uncorroborated beverage. However, the water and syrup must be mixed in right ratio. This done by the With the syrup nearing its final state, we mix it with pure water, creating the finished beverage proportioning equipment. It accurately measures the correct ratio for each and this mixture to the carbonator. Co2 ADDED Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverage. Carbon dioxide not only gives our beverages their effervescent zest, but it also adds to the distinctive and familiar taste everyone has come to expect from our beverages. FILLING Once all the ingredients have been mixed and blended and the bottles have been cleaned and sanitized, were ready to start filling. This is a surprisingly complex process requiring precision at each step. To begin with, bottles must be carefully timed as they move to the filler synchronization is key. Once at the filler, bottles are either held securely in place by flexible grippers or precisely placed under filling valves by centering devices. Before the bottles can be filled, the inside of the bottle must be pressurized. This allows for the force of gravity itself to draw the beverage into the bottle-a process that ensures the smooth flow of liquid, with little to no foaming. CAPPING Once filled, bottles are then capped. We use different caps for different bottles-glass bottles are usually topped with a metal crown while plastic bottles are primarily topped with a plastic screw top. Each can type than moves through different parts of the machine, which ensures each cap stay scratch free and is in the right position to be precisely placed on the bottle. As quality and freshness is key, we use a no-closure

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detector during the capping process and a go-no-gauge or torque meter after the bottle has been capped the no closure detector checks if a screw to or crown has been placed on a bottle. The process actually stops if the detector doesnt find a closure. The go-no-gauge checks for the proper crown crimp and the torque meter check make sure the screw top are good and tight. LABELLING Once the bottles have been filled and capped, they move on to be labeled. A special machine dispenses labels from large rollers cuts them and places them on the bottle. For special labels such as commemorative bottles for football championship, the labels are send to the bottling plants from approval, and then used for packaging. Depending on the occasion, some of these special bottles will go only to specific locations. For examples, a national football championship bottle will be sent only to the home town or state of the championship team. CODING The bottle is now ready to be coded. Each one of our beverages is marked with a special code that identifies specific information about it. Some codes simply identify their date the beverage was bottle or caned. Some come in the form of a date stamp while other codes are much more complex. These codes identify the day, month, shift and plant in which the beverage was made and use a combination of letters a d numbers. You cannot see code on your container. It is because some bottlers use invincible ink that can only we reed with special technology. INSPECTION We respect bottles at many points during the process with refillable bottles, it happens when they are first bottles plant. They are also inspected after they are washed and are filled; inspectors look for external bottle important and make sure each bottle has the right amounts the beverage. White for a substitute for a human inspector we also use bottles inspection machine. When inspecting empty bottles, the machine shoots a strong light beam and through the bottom of the bottle to light collector variation in the light mean that bottle must be discarded. Once the bottle is filled, some plant deft whether the exact among of beverage has been fitted the bottle. If no these are discarded. Even after fitting samples bottles for analysis in its lab. to ensure quality is upto standard.

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Once our filled beverages have passed final inspection, they are ready to package for delivery. Generally, packaging can refer to everything from the unique bottle and can designs, to label designs, to cardboard boxes and containers, to plastic rings. Because the needs and tastes of our consumers are so diverse, the packaging varies depending on where the beverages are being sent. In order to make sure the freshest beverages possible get to you each warehouse must efficiently manage the thousands of beverages cases produced each day. Beverage organization is key, though it is the bottle and cane coding that allow for the necessary precision. From the warehouse, we load beverages on to our distinctive trucks. Night and day, or trucks are delivering our refreshing beverages to stores, soda fountains and vending machines near you.

PRICING STRATEGIES

All the pricing strategies are set by the coca-cola India. The company announces all the prices of the product line all the franchise companies are bound to follow the decisions of the company regarding the product prices. Local company just decides and schemes, which are to be given to the distributors and schemes, which are to the distributors. They decide the discount considering their distribution cost and other incurred costs in delivering the product

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CHAPTER 2 INTRODUCTION TO THE ORGANIZATION

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2. INTRODUCTION TO THE ORGANIZATION

Coca Cola in IndiaAfter a 16 years absence, coca cola returned to India on October 26,1993 with its launch in Agra. An engagement in March 1993 with the Parle Group gave the company instant ownership of the nations top soft drinks brands, with access to parleys 53-plant bottling network, and a base for rapid introduction of the companys international brands. This network remains Indias largest soft drink bottling and distribution infrastructure, reaching out too Indian consumers through a universe of over 8000000 retail outlets spread across the country. As the leading producer and marketer of soft drinks in India, the company leads the flavored, carbonated soft drink market . the Coca-cola Companys products in India include the companys international brands- Coca cola, sprite and fanta, as well as Indias leading soft drink brands, Thumps Up Limca and Maaza- brands acquired from the Parle Group in 1993

Brands in India:1. Coca-Cola 2. diet Coke 3. Sprite 4. Fanta 5. Schweppes 6. Thums Up 7. Limca 8. Maaza 9. Citra 10. Gold Spot 11. Kinley water 12. Sun fill concentrate 13. Shock 14. RIMZIM
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Bottling Information
The Coca-Cola Company received approval from the government in July 1996 to set up a holding company to invest US$700 million in downstream operating subsidiaries to engage in the preparation, packaging, sale and distribution of beverages. In July 1997, the holding company was permitted by the government to operationalize its bottling subsidiaries. The bottling subsidiary currently owns and operates twenty-six bottling plants and sixty distribution centers across India. In addition, it uses 20 contract packers to augment its production capacity and cater to the increasing demand for its wide portfolio of beverages. To reach India's 300 million soft-drink consumers, the company distributes its products in over 700,000 retail outlets, serviced via trucks, converted three-wheelers, tricycles and pushcarts.

Employment/Economic Impact
The Coca-Cola system in India directly employs over 7,000 workers. For every direct job in the system, seven indirect jobs are created in the supply chain. Over the past nine years, The Coca-Cola Company has invested US$827 million in India, US$805 million of which has been invested in its bottling subsidiary.

Community Involvement
The Coca-Cola Company in India supports eight Jagriti (Awakening) Learning Centers (JLC), managed by India's well-known organizations, such as CRY, Pratham, Prayas and Literacy India. The program provides education at the primary level to underprivileged children, as well as computers and training for teachers. Over 1,800 students per year have benefit from the program. Working with state and district governments, our company provides support to primary health centers in areas where our bottlers are located. In 2002, in partnership with The St. John's Ambulance Brigade (Associate of Red Cross), we conducted health camps for those who live in poverty-stricken urban
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areas to sensitize the community on pertinent issues such as HIV/AIDS, communicable diseases, immunization, hygiene and sanitation, and reproductive and child health. Free health check-ups and medicine were provided, with over 10,000 people benefiting from the campaign. The company supports a rainwater harvesting project as part of a major government initiative to combat water scarcity and reduce ground water tables across the country. We are analyzing options for rainwater harvesting at our major bottling plants. Along with the Resident Welfare Association of Greater Kailash, our company installed four rainwater harvesters. The Chief Minister of Delhi unveiled one of the rainwater harvesting units in a dedication to local residents. Several of our bottling plants provide safe drinking water to local villagers through the organization of water tankers, bore wells and hand pumps. The company has funded India's first national polio eradication drive, as well as a national drought relief program. Sponsorships The company sponsors a unique national radio program for women called "The HER Show" (Health Education and Recreation). The 30-minute weekly program informs and educates housewives on primary health and education issues. We sponsored a one-day "Mother & Child Health district Mela" in Ghaziabad. Several hundred women and children from five villages received free medical checkups and consultation. With a large work force complemented by a vast network of indigenous suppliers ,the company not only contributes to the development of the soft drink industry ,but to the development of related industries and the economy as a whole. Over the past 5 years , coco-cola India has led the Indian Soft drink industry through a series of innovative industry initiatives . These include upgradation of technical infrastructure and talent ,enhancement of quality standards , improvement in the distribution systems and stimulation of local entrepreneurs in the marketplace to the benefit of the consumers.

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HINDUSTAN COCA COLA BEVRAGES PVT. LTD.

Industry: Consumer product / FMCG products HINDUSTAN COCA COLA BEVRAGES PVT. LTD. Types of Company: Private Limited Company, Foreign Based Company Location: Sales Office: A-164, SECTOR 63, NOIDA (NCR)

Plant: RIICO INDUSTRIAL AREA, KALADERA TEHSIL CHOMU, JAIPUR.

FEW WORDS ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares an experience that millions of others have served. All of those individual experiences combined have created a worldwide phenomenon a truly global brand. On the distribution front, 10-tonne trucks, open-bay three wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country.

HISTORY
Coca-Cola Company, nourishing the global community with the worlds largest selling soft drink since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs-up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. No wonder, our brands have assumed an iconic status in the minds of the consumers. Coca-Cola serves in India some of the most recalled brands across the world including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up, Limca, Sprite Maaza and Kinley (packaged drinking water and soda), Minute Maid Nimbu Fresh.

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Bottlers
In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or produce) syrup concentrate which is then sold to various bottlers throughout Pharmacist John Smith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories. The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500

All India Division COBOs are now ISO 14001 certified

All 25 of the Divisions Company-owned bottling plants have gained the international standard ISO 14001 Environment Management System certificate. The ISO 14001 certificate is the internationally recognized standard of Environmental Management. A company must demonstrate management commitment, the total involvement of all employees and a compliance with applicable regulatory and internal company standards. Strict division compliance with EKO system ensured that the bottling plants were ready to meet the tough evaluation criteria and standards of the ISO auditors.

RIGHT EXECUTION DAILY (R.E.D.) R.E.D. is the survey method that company started earlier. For the survey of R.E.D., Company had hired the person A.C. Nielson one of the best survey company. This survey gets done once in a month. R.E.D. is the set of norms divided into outlet wise.

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ABOUT THE R.E.D. SURVEY The survey named as R.E.D. (Right Execution Daily). The survey has been conducted to check the cooler management, availability of products & activation of coca-cola in various outlets. THE SURVEY WAS BASED ON THREE TOPICS Firstly, I have to check the cooler management i.e. the customer, are properly managed/working or not. And lastly the most important aspect of cooler management was the brand order. Secondly, I have to check the availability of the product i.e. whether the product is available to the customer or not. Lastly, I have to check the activation, which is a very important because activation helps to boost the sales. Activation is done through boards i.e. glow sign. DPS, Flanges and Combo Boards. Mostly combo boards are given to the E & D outlets. And is very helpful in attracting the customers. Racks with header are provided to the Grocery outlet, which should be fully charged. Right Execution Daily (R.E.D.) is the diversification of outlets as Channel, Class. Let us know what are the Channel and Class respectively.

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PRODUCTS AND BRANDS

Diet Coke
It was introduced in 1982 to offer an alternative to dieters worried about the high number of calories present in regular Coca-Cola. The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its namesake Coca-Cola beverage. This includes other varieties of Coca-Cola such as:

Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-based sweetener in place of sugar Diet Coke Caffeine-Free Cherry Coke (1985) Diet Cherry Coke (1986) Coke with Lemon (2001) Diet Coke with Lemon (2001) Vanilla Coke (2002) Diet Vanilla Coke (2002) Coca-Cola C2 (2004) Coca-Cola Black Cherry Vanilla (2006) Diet Coca-Cola Black Cherry Vanilla (2006) Coca-Cola BlK (2006) Diet Coke Plus (2007) Coca-Cola Orange (2007)

Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a sugar substitute. Introduced in 1963, the product is still sold today, however its sales have dwindled since the introduction of Diet Cok

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Type

Cola

Manufacturer

The Coca-Cola Company

Country of origin

India

Introduced

1977

Related products

Coca-Cola, Pepsi, Campa Cola

Thums Up is a carbonated soft drink (cola) that is very popular [citation needed] in India, where its bold, red thumbs up logo are common. It is similar in flavor to other colas but has a unique taste reminiscent of betel nut. Introduced in 1977 to offset the expulsion of The Coca-Cola Company and other foreign companies from India, Thums Up, Limca, and Campa Cola gained nationwide acceptance. The brand was bought out by Coca-Cola who later re-launched it to fight against Pepsi after unsuccessful attempts at brand killing. Background

During late 1970s, the American cola giant Coca-Cola was banned by the Indian government. Following this, the Parle brothers, Ramesh Chauhan and Prakash Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot (orange flavored). Thums Up was basically a cola drink, but the company never claimed it as such. The formula was just as closely guarded as the famous Coke formula. During the same time, the owners of Coca-Colas bottling plant, Pure Drinks Ltd., launched Campa Cola and Campa Orange, both of which had a higher dose of carbon dioxide. The Thums Up logo was a logo showing a red thumbs up hand gesture with a slanted white serif typeface. This would later be modified by Coca-

Cola with blue strokes and a more modern-looking typeface. This to reduce the dominant red color in their signage.

was mainly done

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The picture shows the thums up mountain or thums up pahaad (in Hindi)manmade hills which has a natural top like thums up logo and is a popular sight from trains .Its famous caption until the early `80s was, Happy days are here again, coined by then famous copywriter Vasant Kumar, whose father was spiritual philosopher U. G. Krishnamurti. Later it was changed to "Taste the thunder!.

Market

Thums Up enjoyed a near monopoly with a much stronger market share often overshadowing its other rivals like Campa cola, Double seven and Dukes, but there were many small regional players had their own market. It even withstood liquor giant United Breweries Group (makers of Kingfisher Beer) McDowells Crush, which was another Cola drink and one more Double Cola. It was one of the major advertisers throughout the 80s. In mid-80s it had a brief threat from a newcomer Double Cola which suddenly disappeared within a few years. In 1990, when Indian government opened the market to multinationals, Pepsi was the first to come in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending in the Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named Maha Cola. This nickname gained popularity in smaller towns where people would ask for "Maha Cola" instead of Thums Up. The consumers were divided where some felt the Pepsis mild taste was rather bland. In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But Coca-Colas entry made things even more complicated and the fight became a three-way battle. That same year, in a move that baffled many, Parle sold out to Coke for a meager US$ 60 million (considering the market share it had). Some assumed Parle had lost the appetite for a fight against the two largest cola brands; others surmised that the international brands seemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-Colas, and Coke has a habit of killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up brand which at that time still had more than 30% market share.

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Re-launch

Despite its strong overall equity, the brand was losing its popularity among the core cola drinking age group of 12 to 25 year olds, partly due to nil advertising. Coca-Cola apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more than Coke if Thums Up was withdrawn from the market. Instead, Coke decided to use Thums Up to attack Pepsi. The Coca-Cola Company by this time had about 60.5% share of the Indian soft-drink market but much to its dismay found out that if it takes out Thums Up, it would remain with only 28.72% of the market (according to a report by NGO Finance Trade in India), hence again dusted out the Thums Up brand and re-launched targeting the 30 to 45 year olds. The brand was re-positioned as a manly drink, drawing on its strong taste qualities. Known to be a strong drink with more power packed into it than other colas, it was a favorite in Rum based Cocktails and the byword rum and Thums Up. Hence Thums Up kick-started an aggressive campaign directly attacking Pepsis television advertisement, focusing on the strength of the drink hoping that the depiction of adult drink would appeal to young consumers. Grow up to Thums Up was a successful campaign. The brands market share and equity soared northwards. The brand was unshakeable and Coca-Colas declaration that Thums Up was Indias premier cola brand in terms of market share did not surprise many. Other campaigns from Thums Ups build on the strength of its cola and build associations as a macho drink. Ads showing the Thums Up man, riding through the desert in search of a cantina that sells Thums Up rather than drink another cola, stick in the minds of many Indians and caught the imagination of youngsters who want to be seen as men.

Sponsorship and Souvenirs

Thums Up was one of the major sponsors in the Cricket Matches. In early 80s it came out with several postcards featuring Sunil Gavaskar and Imran Khan. Parles southern bottler was a major sponsor in the Indian motor sport scene in 80s; to several Indian track drivers in Sholavaram races and also to several regional Car and Bike rallies. Today old Thums Up souvenirs and stickers have become

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Limca

Limca is a lemon and lime flavored carbonated soft drink made in India and certain parts of the U.S. It is less bubbly than its American counterparts like Seven Up and Sprite, and it has a slight flavor of ginger. In 1992, when the government allowed Coca-Cola to return, at the same time as it admitted Pepsi for the first time, CocaCola bought Limca, Thums Up, Maaza and other drink brands. Like other sodas, Limca is generally sold in glass bottles within India,

Type Manufacturer Country of origin Introduced

Lemon-lime soda The Coca-Cola Company India 1977

Limca is a lemon and lime flavored carbonated soft drink made in India and certain parts of the U.S. It is less bubbly than its American counterparts like Seven Up and Sprite, and it has a slight flavor of ginger.

In 1992, when the government allowed Coca-Cola to return, at the same time as it admitted Pepsi for the first time, Coca-Cola bought Limca, Thums Up, Maaza and other drink brands.

Like other sodas, Limca is generally sold in glass bottles within India, which are returned to the store or restaurant after the contents have been drunk. The bottles are sent back to the manufacturer, washed and reused, because they are more expensive than the soda itself.

Rates and sizes

2.25 ltr. plastic bottles cost Rs.60 1.25 ltr. plastic bottles cost Rs.33 600ml plastic bottles cost Rs. 22 300ml glass bottles cost Rs. 12

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200ml glass bottles cost Rs. 8

Limca also publishes the Limca Book of Records, a record book similar to the Guinness Book of Records. The Limca Book of Records details feats, records and other unique statistics from an Indian perspective.

One of Limca's original and very popular taglines was "Limca. It's very very Lime & Lemoni." In India reigning top Hindi film actress and actors are generally chosen as models for the product.

Sprite

Type Manufacturer Country of origin Introduced

Lemon-lime The Coca-Cola Company Germany 1961

Sprite is a clear soda, lemon-lime flavored, caffeine free soft drink, produced by the Coca-Cola Company. It was introduced to the United States in 1961. This was Coke's response to the popularity of 7 Up, which had begun as "Lithiated Lemon" in 1929. It comes in a primarily green and blue can or a green transparent bottle with a primarily green and blue label.

History

Originating in Germany as Fanta Klare Zitrone ("Clear Lemon Fanta"), Sprite was introduced to the United States in 1961 to compete against 7-Up. In the 1980s, many years after Sprite's introduction, Coke pressured its large bottlers that distributed 7 Up to replace the competitor with the Coca-Cola product. In large part due to the

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strength of the Coca-Cola system of bottlers, Sprite finally became the market leader position in the lemon-lime soda category in 1989 Global naming Sprite, as a lemon-lime soda, is referred to by consumers around the world in a variety of ways. It is called lemonade in Australia and New Zealand. In Ireland and Canada, Sprite and 7-up are interchangeable and, when asked, a person may say Sprite or 7-up to mean the same drink. In South Africa, Sprite and Schweppes Lemonade are almost interchangeable. In some parts of Switzerland, Sprite (or any other type of lemonade) is also known simply as Citra.

Fanta

Type Manufacturer Country of origin Introduced

Soft drink The Coca-Cola Company Germany 1940

Fanta is a global brand of fruit-flavored soft drink from the Coca-Cola Company. There are over 115 flavors world-wide; however, most of them are only available in some countries. The brand was originally introduced in Germany in 1940, and was purchased by Coca-Cola in 1960. Today it is available in 180 countries.

History In 1940 Fanta was created by the German chemist Schetelig during World War II in Germany, by the German Coca-Cola bottling company in Essen. Due to war time restrictions on shipping between Germany and the United States, the German bottling plant could not get Coca-Cola syrup. The CEO of the plant, Max Keith, needed a product to keep the plant in operation and devised a fruit flavored drink made from available ingredients.

Using apple fiber remaining from cider pressing and whey, a byproduct from cheese manufacture,

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Fanta was created and became quite popular. The original German Fanta had a yellow color and a different flavor from that of Fanta Orange. The flavor varied throughout the war, depending on the ingredients used. The name 'Fanta' was coined during an employee contest to name the new beverage. Keith told them to let their Fantasy (German for "imagination") run wild. On hearing that, salesman Joe Knipp spontaneously arrived upon the name Fanta. After World War II, Fanta was introduced to the United States by Coca-Cola, and in 1960 they bought the trademark. Fanta Orange is the most popular Fanta flavor, available in 180 countries. In terms of volume, Brazil is the largest consumer of Fanta in the world. Fanta remains more popular in Europe and South America than in the United States. Primary competitors to Fanta have included Tango, Orangina, PepsiCo's Slice and Tropicana Twister. In some markets, Coca-Cola also has spun off various diet Fanta varieties including Fanta "Z" and Fanta Zero Orange.

Ingredients
The composition of Fanta, for the same flavor, varies from country to country. For example, the European Fanta Orange has orange juice (in variable percentages), whereas the US formulation does not. The Australian version contains 5% fruit juice, and South American formulations also have orange juice, especially in Brazil, where it contains 10% of orange juice. These differences mean the taste of Fanta differs greatly from country to country, more so than regular Coca Cola, and may in part explain why the drink's popularity varies so much between different countries.

Fanta in other countries

There are over 70 different flavors world-wide. For example, in Romania (and some other countries), there is "Fanta Shokata" based on the traditional Romanian and Balkan drink Socata made from elderflower (a wordplay between "soc"- elderberry in Romanian- and "shock"). In Switzerland and the Netherlands the local fruit, blackcurrant is used to produce Fanta as well. Some identical flavors have different names in different markets. The classic orange, for example, was rebranded "Fanta
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Funky Orange" in 2003 for the Nordic countries and Belgium, and to 'Fanta Original Orange' in the Netherlands while other countries retain the older "Fanta Orange" brand. As of the year 2005, the Fanta brand has been connected with the word Bambaacha (or Bamboocha), which is often seen in the Fanta commercials. Tab diet Cola was originally produced by the Fanta division of Coca-cola and was, at one time, available in a variety of non-cola flavors as well. Later in 2005, Fanta branched out into new Fanta Zero (diet versions) varieties in Great Britain. In Great Britain, the new Fanta logo is introduced.

Maaza

Type Manufacturer Country of origin Introduced Variants Related products

Fruit juice The Coca-Cola Company India 1976 Maaza Orange, Maaza Pineapple Slice, Frooti

Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the most popular drink being the mango variety so much that over the years, the Maaza brand has become synonymous with Mango. Initially Coca-Cola had also launched Maaza in orange and pineapple variants, but these variants were subsequently dropped. Coca-Cola has recently re-launched these variants again in the Indian market. Mango drinks currently account for 90% of the fruit juice market in India. Maaza currently dominates the fruit drink category and competes with Pepsi's Slice brand of mango drink and Frooti, manufactured by Parle Agro. While Frooti was sold in small cartons, Maaza and Slice were initially sold in returnable bottles. However, all brands are also now available in small cartons and

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large PET bottles. Of late, the Indian market is witnessing the entry of a large number of small manufacturers producing only mango fruit drink. Maaza has a distinct pulpy taste as compared to Frooti and tastes slightly sweeter than Slice. Maaza claims to contain mango pulp of the Alphorns variety, which is known as the "King of Mangoes" in India.

History
Maaza was launched in 1976 in India. The Union Beverages Factory, based in the United Arab Emirates, began selling Maaza as a franchisee in the Middle East and Africa in 1976. By 1995, it had acquired rights to the Maaza brand in these countries through Maaza International Co LLC Dubai. In India, Maaza was acquired by CocaCola India in 1993 from Parle-Bisleri along with other brands such as Limca, Citra, Thums Up and Gold Spot. As for North America, Maaza was acquired by House of Spices in 2005.

KINLEY

Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. The importance of water can never be understood. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday ritual or as the monsoon which gives life to the sub-continent. Kinly water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca- Cola Company. That is why they introduced Kinley with reverse-osmosis along with latest technology to ensure the purity of their product. Thats why they go through rigorous testing procedures at each and every location where Kinley is produced. Because they

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believe that right to pure, safe drinking water is fundamental. A universal need that can not be left to chance. Channels Grocery Outlet primarily engaged in retailing of food & various household items. It includes Grocers (Outlets dealing mainly in grains, provisions, spices, edible oil, vanaspati etc.) and General Stores (Outlet selling items of day to day requirements & stocking a variety of branded products) E&D types 1 Outlet selling items of eat which are being consumed primarily standing in the outlet or being taken away for Future Consumption. Does Not Have Place To Sit. It includes bakery / sweet shops/ QSR / juice centers / soft drink shops/ Tea shops etc. E & D type 2 Outlet selling items of eats which are being cooked/made within outlet possibility of consuming those products within the outlet. The Outlet Should have A Place To Sit. It includes Sit down restaurants / Bars / Dhabas / Cafes etc. Convenience- includes outlets which are small stores, generally accessible locally. These are often located alongside busy roads. It includes Chemists / STD Booths / Pan Beedi shops, etc.

Class Bronze- Those outlets, which sells <= 200 carets per year. Silver- Those outlets, which sells 201 - 499 carets per year. Gold- Those outlets, which sells 500-799 carets per year. Diamond- Those outlets, which sells more than 800 carets per year.

Story Salesperson hello sir, I am from Coke and I have a proposal that will surely increase your income. May I present you?

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Shopkeeper yes please present it Salesperson - Sir if you will start to sell coke then your overall sale will be increased and it is not tough to sell coke because Coke is the leader in beverage industry and a very well known brand. Shopkeeper- yes, but how it can increase my overall sale? Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products have a very good combination with cold drink. If a person wants to purchase any of these products then it is quite possible that he will purchase Coke and vice versa. Shopkeeper But how Coke can increase my profit? Salesperson Sir if you are really interested to explore through Coke, you may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2.25 liter. And for start selling Coke you need to invest only Rs. 2000. We will provide you 3 empty carets WeRa QT M. Re Pr ighte Y. R. ve ofi t of P.( nu t(R Rs e( s.) .) Rs .)

of ca Pr se( od Rs uct.) (M L)

20 16 24 8 19 24 0 8 2

300 600 2250

240 492 500

24 24 9

12 22 60

288 528 540

48 36 40

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Sir your daily profit from coke (in Peak season) = Rs. 148 Profit per month (in Peak season) Profit of whole season = Rs. 4440 = Rs. 26640

(Because the peak season for Coke is only of 6 months) Profit of rest of the 6 months = Rs. 13320

(Because as per the Coke assumption income in the off season is decreased by half in comparison to the Peak season) Profit of whole year Your investment Your ROI = Rs.39960 = Rs. 2000 = 39960 * 100/2000*360 = 66.6% Shopkeeper But I do not think this much will work what about those stuffs that needs to support trading of Coke and I have to provide them like electricity, ice etc. Salesperson Sir thats a really nice question, we can understand your anxiety and we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator for the storage purpose of Coke if will be all right as the refrigerator can work by consuming power as low as 2 units per day which will cost you Rs. 8 per day. So, what you have to say about our offer? Shopkeeper Yes, I think it will be a nice idea to accept your offer. Salesperson Thank you sir and Congratulation (Shaking Hands) I will be dropping my products within 10 minutes as I have the carrying vehicle with me and within next 15 minutes you are all set to go for selling Coke.

Benefits of horizontal expansion: Provides Incremental Volume & Revenue for Business

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By horizontal expansion there will be more outlets of our product In the market which will sell our product in more quantity. This will generate incremental revenue for the business.

Helps Improve Route Productivity There are pre determined routes through which product is transported and delivered at the coke outlets. If we open more outlets on the routes it will increase the productivity because more outlets will be covered and more products will be delivered with a negligible increase in time and efforts. Hence it will improve productivity of the route

Improves Profitability of Our Distributors Expenses on routes and delivery of product are incurred by the distributors. Opening new outlets will give more revenue to our distributors also. With the increase in route productivity will improve profitability of the distributors.

Reduced Dependence on Large Customers, We know that coke products have a very good demand. To comply with this we have to provide large amount of supply. In case we have few outlets a large amount of stock is gathered at few retailers. In this case they become monopolistic and demand many things like coolers refrigerators discounts margins etc. from the company. So it is very necessary to reduce dependence on large retailers by opening new outlets.

Increase market visibility selling at more outlets give more market visibility of the product which gives higher product recognition and brand value to the products.

Economies of scale Economies of scope Increase in market power over supplier and downstream market channels

Advantage of horizontal expansion over vertical expansion: Both expansion techniques are meant for increasing sales volumes. But in horizontal expansion company can earn more profits by spending less. Lets see the profit story of horizontal expansion

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Above tables clearly indicate the importance of opening new outlets. By doing vertical expansion only growth in profit was not very effective but because of opening just 200 new outlets sales increased to a large extent. Total profit margin and return on investment also increased.

OUTCOME OF THE PROJECT Apart from the other benefits of horizontal expansion, its main benefit is to generate incremental revenue for the company. During the project I studied strategies and analyzed the market. My major job was to use different tools provided by the company for horizontal expansion like refrigerator, ice box etc. and to open outlets for coca cola products. With my other team mates and our outcome is as follows:No. of New outlets in Mansarovar = 12 No. of New outlets in Vidhyadharnagar = 10 No. of New outlets in other areas = 15 TERMS AND TERMINOLOGY I targeted the market of Jaipur

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1.) DOD- DESPATCH OUT DATE- The date at which the product must leave the factory warehouse and reach retail outlet. If any product is going to attain its DOD in a weeks time then it must be communicated to the manger of the warehouse & the stock should be cleared as soon as possible.

2.) Focus Stock- The stock whose DOD is less than 15 days away. 3.) BBD- Best Before Date- The date before which the product is fit for consumption. BBD stock cant be sold in market.

4.) Clearance Stock- The stock which is between the Focus & BBD stage.

5.) Quality Distributor Audit- Companys quality auditor pays regular visits to the warehouses of the distributor and the retailer to check whether all the quality parameters are met or not. 6.) RGB- Refill Glass Bottle. These bottle are made up of glass.

7.) PET- These bottle are made of plastic.

TOTAL PRODUCT MANAGEMENT AT DIFFERENT LEVEL

Production:-

Management should be efficient enough in order to minimize the wastage and to increase and optimize the productivity. Proper training should be given to the worker. Proper material holding from the raw material to the finished goods. Production is done in such a way that the product is made should have proper label, date of manufacturing and it should be hygiene and the packaging should be proper.

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Warehouse:In warehouse the goods are kept properly. It should be kept clean in shade not in open and direct sunlight should not fall on stock specially on Limca and Fanta because it change the colour and taste. Proper board should be made for every lot of stock. The board contain the following:1) Lot number 2) Date of manufacturing 3) Date of Dispatch (DOD) 4) Best before date (BBD) 5) Quantity of goods Distribution: Note arrival time of truck and departure time from plant Check conformity of brand/pack against indent Note date code & segregate date wise and tag Select cool ventilated area of low temperature Move older lot for first out dispatch

Improve storage condition godown/layout Check stock against target& trend Decide order dispatch schedule by brand/pack Ensure fifo practice by agent Create awarness of TPM specifically PET- maaza- sprite Rationalise route and brand time table (small vehicle) Do not kill or over order stocks Personality supervise date code check all products BBD lapse is a direct revenue hit Report high risk stock take suitable action Demonstrate educate enforce FIFO at pos along with the daily route activity

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Be polite but firm about agents and retailers negligence . Dont let replacement be taken for granted

ROLL OUT PLAN Make deadlines Dispatch schedule of distributors firm numbers Direct route sale plan Calculate stock level against plan Work reorder plan for brand pack or action of cxcess stock well in advance

FIFO method should be follow while placing the stock so it is easy for shipping department at the time of dispatch, so the old stock is not remain in warehouse and become BBD stock. FIFO method is strictly followed in shipping department. The stock is reach to the distributor point with in dispatch out date (DOD) is half of best before date (BBD). DOD is very important. It is the maximum time allowed for reaching the goods from production to distributor. Proper receiving of goods from company and maintain the record of each stock. The following step is maintained:1) Record for stock received.

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2) Stock is placed in such a way that FIFO method is follow. 3) Ageing analysis board should be maintained regularly. 4) Proper ventilation and lighting should be there. 5) Should be free from insects and pests. 6) Place Dry and proper temperature should be maintained. 7) Proper management of product delivery to retailer.

We do the retailers survey in which we see the manufacturing date of each brand present at retailers shop. From this we conclude that this product is BBD or not, if it is BBD then, it means that the sale of this flavor is not very good and this flavor is not liked by the consumer. If the product is fresh not BBD then the sale of product is good because in this business the flavor is most important element. In this survey we inform the distributor to replace the BBD product. This process helps management to decide which flavor is more popular & which is less popular. We also conclude that Thumsup and Limca (RGB) flavor are more wanted or sale at juice center. 2L PET is more at provision store and department store. In rural area RGBs Selling is more because it cost Rs. 35 and give 2L in comparision to 300 ml and 500 ml and the quantity is also sufficient for family members. In this summer sale of 2L PET of Thumsup and Limca is more because in comparison of 300 ml and 500 ml, 2L cost less.

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CHAPTER 3 RESEARCH METHODOLOGY

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3. RESEARCH METHODOLOGY

The study is based on Primary data and Secondary data. Secondary Data was collected from the Companys website and MDs Sales Presenter as well as Primary Data was collected through structured questionnaire. The questionnaire was designed by keeping all the objectives of the study in mind.

3.1. Title of the Study: - HORIZONTAL EXPANSION OF COCA COLA. 3.2. Duration of the Project: - I have been assigned this project as 15 days
training.

3.3 .Objective of Research

Primary Objective:

1. To understand & explain the Horizontal Expansion Concept with respect to HCCB operations at retail end. 2. To enlist the benefits of Horizontal Expansion for the company at retail end. 3. To enlist the roles and responsibilities for Horizontal Expansion at retail end. Secondary Objectives:

1. To identify if there exists any training requirement for the improvement of sales to its sales team? 2. To understand how to make The Horizontal Expansion Process more effective 3. To study the distribution system of the company. 4. To study the behavior of sales man and distributor towards shopkeeper. To develop the business, expand the market coverage, acquisition of retailers, retention strategies and maintaining customer relations

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3.4.Types of Research
The type of research which is used to conduct survey was. Primary research, in contrast, is research that you design and conduct yourself. For example, you may need to find out whether consumers

would prefer that your soft drinks be sweater or tarter. Secondary research involves using information that others have already put together. For example, if you are thinking about starting a business making drinks for people, you dont need to question people about what type of drink they prefer for major and minor likes. that information has already been published by the Indian Governm ent. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete. For example, Coca Cola did a great deal of research prior to releasing the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace traditional Coke.

3.5. Sample size and Data collection Method

Sampling units are outlets owners/ shopkeepers selling soft drinks. Method of data collection: The study is based on Primary data and Secondary data. Secondary Data was collected from the Companys website and MDs Sales Presenter as well as Primary Data was collected through structured questionnaire. The questionnaire was designed by keeping all the objectives of the study in mind.

Universe: Jaipur
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Thus questionnaires and discussions were the two main tools/instruments used. Sample Size: Sample Size of 50 outlets. Sample Technique: Sample Technique is Simple Random Technique.

3.6. Scope of study

What is Horizontal Expansion?

Expansion of business capacity through the absorption of facilities or buildings as well as through the acquisition of new equipment to handle an increased volume in sales in which the business is already engaged. In microeconomics and strategic management, the term Horizontal Expansion describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. Horizontal Expansion in marketing is much more common than Vertical Expansion is in production. Horizontal Expansion occurs when a firm is being taken over by, or merged with, another firm which is in the same industry and in the same stage of production as the merged firm, e.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to improve its sale from Coke monopoly outlets, means Cokes monopoly outlets are being taken over by Pepsi now in this condition to improve its sale Coke need to open new outlets which is called Horizontal Expansion Strategy. A monopoly created through Horizontal Expansion is called a Horizontal Monopoly. This is the expansion of a firm within an industry in which it is already active for the purpose of increasing its share of the market for a particular product or service.

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Reason Of Horizontal Expansion? The ultimate objective of coke is to acquire more customers and serve them properly. While doing Horizontal Expansion take care to the competitors strategy. The main competitor is PEPSI, who has opted Vertical Expansion to generate more sell however Coke do not believe on Vertical Expansion because Vertical Expansion has limited preview so COKE is great believer in Horizontal Expansion and this strategy helped to the company to maintain its leadership in the soft drink industry. India is a big country having diversified taste and appearance and same character is reflected in their demography. Horizontal Expansion helps the company to serve the more people and more customers touch point because in the waste country many customers commute

How to Do Horizontal Expansion

To do Horizontal Expansion more efficiently we made a profit story and talk to the shopkeepers according to that story.

From April to October 2009 we shared early drafts of this report with over 50 senior representatives from NGOs, academia, government, professional bodies and retail customers at four stakeholder workshops, facilitated by the Oxford Health Alliance. These stakeholders provided a series of recommendations both for our reporting in this, our first report, and for our future reporting and strategy. We responded to many of their recommendations for this report, including:

Greater focus on short-term action as well as medium - long-term transformation

Clear future vision - what kind of company we want to be, what kind of products we want to sell

Greater specificity and clarity on pledges - clearer timelines, scope and nutritional definitions - so we can be held to account

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Pledges covering what we can influence, as well as what we can control - for example widening the retail availability of our healthier product.

3.7.Limitations of study
1. The training was for shorter period of time that is why it was not possible to carry out a detail study.

2. The sample size was limited.

3. The strategies of the company changes very frequently it is difficult to make exact recommendation.

4. Behavior of many retailers was not co-operative.

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CHAPTER 4 FACTS AND FINDINGS

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4. FACTS AND FINDINGS

1. It is felt that outlet owner are more concern about schemes like offers on cases, under crown schemes etc and Pepsi is providing them better schemes then Coke.

2. It is felt that distributor is not doing his work honestly, he is not sending route in the market properly. When the salespersons generate orders with retailer, due to problem like salesman is on leave, vehicle is not available etc they delay the order and retailer cancel the order with the distributors that affects the sales volume.

3. Distributors are more concern about Wholesaler rather than Retailer.

4. As per policy, both companies are not entitled to collect competitor empty bottles from the shops but Pepsi is not adhering to it. Therefore this hampering the business of coca-cola in the market as Pepsi is more preferable to carry on the business in a suave manner.

5. The distributor in its area is facilitating sales by establishing monopoly of offers and schemes that do not reach to the outlet.

6. Due to infiltration from Moon Beverages (FOBO) in Jaipur from Delhi, difference in the rates for the shopkeepers has been perceived as a major problem in the market. The disparity is being created due to COBO and FOBO.

7. Distributor rarely keeps any interest to work and communicate with the customer who results in of the companys sales as well as image are getting adversely affected.

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CHAPTER 5 ANALYSIS AND INTREPRETATION

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5. ANALYSIS AND INTREPRETATION

(1) What Type of Channel do you hold? a) E & D b) Grocery c) Convenience d) Other E&D Grocery10 20

Convenience Other, Please specify

20 0

(2) What Type of outlet are you in? a) Pepsi Exclusive b) Coke Exclusive c) Never sell cold drinks d) Both a & b

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Pepsi Exclusive Coke Exclusive 10

10

Never sell cold drinks Both a & b

10 20

(3) What is the chilling equipment you are using? a) Coca cola Fridge b) Pepsi Fridge c) Own your Assert Fridge d) Ice Box e) Both (A & B). Coca cola Fridge Pepsi 10 Fridge 10

Own your Assert Fridge Ice Box Both (A & B).

5 7 18

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(4) Kindly rate the level of satisfaction on Communication from the company a) Highly satisfied b) Quite satisfied c) Neither satisfied nor dissatisfied d) Quite dissatisfied

Highly satisfied Quite satisfied 19

Neither satisfied nor dissatisfied Quite dissatisfied Highly dissatisfied

8 13 4

(5) If a brand which you prefer is not delivered to you properly, then what do you do? a) Go for other brand b) Call to distributor c) Call to companys sales person d) Stop selling that brand e) Other actions Go 32 for oth er bra nd

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Call to distributor Call to companys sales person Stop selling that brand Other 0 actions

0 13 5

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(6) Which of the following promotions affect the sale mostly? a) Scheme b) Case refund c) Price pack d) Under Crown Scheme e) Any Other Sc 21 he me

Case refund Price pack Under Crown Scheme Any 0 Other

7 4 18

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(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any affect of it on sales? a) No b) Yes c) Cant Say No Yes Cant10 Say 12 28

(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak season, like Summer)? a) Increase b) Decrease c) No effect d) Cant say Increase Decrease No effect Cant15 7 6 22

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say

CHAPTER 6 SWOT ANALYSIS

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6. SWOT ANALYSIS
Strength
Stronger brands in Cold drinks Defining taste Dominant market shares First mover advantage Established distribution network. Aggressive market development

Weaknesses
Bakeries and hotels do not appreciate the policy of price difference between wholesalers and distributors. It doesnt have tie ups with big hotel chains { like Oberoi and Taj } The company does not distribute samples to potential users. Service provided by the distributor is not up to the mark.

Visi coolers provided by the company are not adequate in number.

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Opportunities
Impulse snacking is an Indian habit. Attitude and disposable income changes are favourable to impulse drink. Large youth population, 47% of urban India is growing dominant cold drink consuming segment. Child and gifting segments expected to grow at faster rate. Great opportunity lies in the untapped new channels (school, colleges , clubs, hotels etc.

Threats
Aggressive marketing by competitors in hotels. Foreign drinks have entered the market, and are eating up the market share of coca cola.

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CHAPTER 7 CONCLUSION
CONCLUSION
Coca - Cola beverage pvt. ltd. is worlds largest beverage company and as we know that the coca-cola company is on that stage because of its large number of products and by giving the customer complete satisfaction regarding taste and quality. Now a day its necessary to show customer and to make believe them that our product is better than others in the aspects which can be done in a better way through merchandising the products.

As far as journey with the company, I grasped lots of knowledge within two months. Because many of the company officials has assisted and given me the valuable notes and experience of their life.

The primary objective of the my research is to analyze the horizontal expansion strategy of Coke and at the end of the research I found that there is requirement of changing the strategy for acquiring new customer for Coke but company should take care of its existing customer because they are the main instrument of promotion for any company so old customer should be fully satisfied with the company.

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CHAPTER 8 SUGGESTION AND RECOMMENDATION

8. SUGGESTION AND RECOMMENDATION
1. It is suggested that the company should embark upon improved marketing strategies with special importance to the following a. Sales person should be provided with all the facilities that will help them in reaching shops that are generally inaccessible due to factors like distance, time etc. For this purpose, the company should enable its marketing wings in such a way that they can facilitate communication and accessibility to penetrate into markets devoid of sales person services. A suggestion can be forwarded to the company if they can afford to supply carrying vehicles (delivery vans) to the sales persons in order to extend markets. 2. Another problem that must be taken care of is rivals competitive edge over companys performance. Pepsi is going brilliantly with its strategy of bottle collection in an unbiased way. This is actually getting detrimental to the

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companys hold of overall market share of the area. So Coke is also suggested to stop Pepsi for collecting Cokes bottles. 3. A major problem has been detected in the area surveyed. This problem can be ranked in the first order as it is related to the distribution channel itself the problem lies with the distributor who, in executing a strange dictate, has established a monopoly in its business and not letting several critical factors to be considered. These include pricing policy as a primary factor where the distributor is setting the price on its own will and taking care of its own business profitability. If Coke does not pay attention towards the matter, not only it will affect its market populism in an ill way, also will it pave the way for Pepsi to capture its lost market. 4. It is necessary for the company to resist FOBO of its vandalism of market infiltration to save the image of the company in Jaipur and to maintain controlled rates as well. For this purpose, two things need to be considered; awareness in the market about distinction between COBO and FOBO and to set an easily understandable demarcation to recognize the distinction. It is suggested to the company to introduce code system which can exclusively identify both COBO and FOBO. With it, shopkeepers should get the acknowledgement from the companys side about checking the products before keeping them to their stores. 5. A strange feedback from the market has, however, paused comprehension about Cokes market. The survey has shown that the practice of delay for supplying products in the market can create a compelling situation for the shopkeepers to change or switch over from COKE. It is humbly recommended that, in order to win over problems in the prospective market of Jaipur, Coke should always step forward to verify and maintain its supply chain system in striking a balance between what is produce and how much is sold. 6. The final round of question, however, revealed that schemes and offers will always trigger shopkeepers enthusiasm in selling the product. Coke should find out a cost effective solution so that it could extend favor to the shopkeepers in keeping beverages from the company along with competitors products.

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CHAPTER 9 APPENDIX
(1) What Type of Channel do you hold? e) E & D f) Grocery g) Convenience h) Other, Please specify

___________________________________________________ (2) What Type of outlet are you in? e) Pepsi Exclusive f) Coke Exclusive g) Never sell cold drinks h) Both a & b (3) What is the chilling equipment you are using? f) Coca cola Fridge g) Pepsi Fridge

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h) Own your Assert Fridge i) Ice Box (4) Kindly rate the level of satisfaction on Communication from the company f) Highly satisfied g) Quite satisfied h) Neither satisfied nor dissatisfied i) Quite dissatisfied

(5) If a brand which you prefer is not delivered to you you do? f) Go for other brand g) Call to distributor h) Call to companys sales person i) Stop selling that brand

properly, then what do

j) Other actions, please specify __________________________________________.

(6) Which of the following promotions affect the sale f) Scheme g) Case refund h) Price pack i) Any Other,

mostly?

Please

Specify

________________________________________________.

(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any affect of it on sales?
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d) No e) Yes f) Cant Say

(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak season, like summer)? e) Increase f) Decrease g) No effect h) Cant say (9) I. Kindly rate the behavior of sales man (Overall year) towards: A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied D) Dissatisfied E) Highly dissatisfied

10)

Delivery

(timeliness)

_____________________________________________________ a) Once in a week b) Twice in a week

c) more than twice in a week d) Once in a Month

11). Kindly rate the behavior of sales man (Peak season) towards: A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied
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D) Dissatisfied E) Highly dissatisfied

(12) Kindly rate the behavior of distributer (Overall year) towards: A) Satisfied C) Neither satisfied nor dissatisfied B) Dissatisfied D) Dont Know Distribute

BIBLIOGRAPHY

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10. Bibliography

Reference: www.coca-cola.com www.coca-colaindia.com

Books:

Market Research (Naresh K. Malhotra)

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