Professional Documents
Culture Documents
Eshitaaggarwalreport 2 121co126065349 Phpapp01
Eshitaaggarwalreport 2 121co126065349 Phpapp01
Eshitaaggarwalreport 2 121co126065349 Phpapp01
Beverage
Non-Alcoholic Beverages
Alcoholic Beverages
Grain
Non-carbonated
Carbonated
Fruit Based
Fruit Juices,
Colas,
Wine,
Beer,
Coffee,
Soda,
Brandy
Whisky
Tea,
Tonic Water
Packaged
Water
India, various positive factors drive the beverage markets. One is the rising number
of people in the middle class with extra money to spend on new beverages like
wine, new brands of imported whiskey, or the fancy energy drinks, some of which
are really good to enable people to work
longer, to listen longer during conferences, and even to party longer and have fun.
Leader in this segment is Red Bull, but some other good and very effective drinks,
one
even
very
healthy
are
already
or
soon
entering
the
market.
Another factor is the sheer size of the number of people in India. Even the rural
households, as long as the monsoon is good, get purchasing power and can
participate in consumer markets. Where ever the purchasing power is still not big
enough, companies offer smaller packs for Rs. 10 or Rs. 5, especially to be seen in
the snack market. Hot summers in India also help a bit to sell beverages.
The large untapped market potential for store-bought non-alcoholic beverages, in
particular carbonated beverages, juice based drinks and energy or sports drinks
among urban/suburban consumers in India.Approximately 120 billion litres of
beverages are consumed by Indians every year, but only 5% represent store-bought
packaged beverages. The majority of Indian consumers (75%) still consume nonalcoholic store-bought beverages less than once a day, highlighting a large
untapped market opportunity, particularly in the carbonated drinks and juice or juicebased categories (estimated to be worth $1.5 Billion and $.25 billion respectively). In
order to increase consumption and penetration of such beverages manufacturers
will have to address the two primary reasons why some Indians abstain entirely, that
is, health concerns and undesirable taste.
The study investigates consumption frequency and habits, the importance of various
product attributes, and brand preferences across age, household income, city in
India and beverage category. This study has implications for manufacturers,
distributors, retailers and investors hoping to capitalize on the growth of these
beverage categories in India and distinguish themselves in the increasingly crowded
marketplace.
3
India is a booming market for the beverage industry as well. It already accounts for
about ten per cent of global beverage consumption today. This means that the
country has the third-largest beverage consumption after the USA and China. But
that is not the end of the road. Market analyses indicate that beverage sales in India
will be increasing by more than 60 per cent between 2008 and 2012. Since India is
(still) a country of tea and coffee drinkers, packaged cold drinks have enormous
potential. Packaged water, beer, spirits and carbonated drinks are recording what
rates are in some cases high double-digit growth. All in all, annual per capita
consumption of packaged beverages is supposed to triple from 2.6 litres in 2000 to
8.7 litres in 2012.
Demand for milk and milk-based beverages are also rising. India is the worlds
biggest producer and consumer of milk, since milk plays a major role in the Indian
diet. The consumption of milk and milk-based beverages has increased by an
annual average of 2.7 per cent in the last four years and most of them (65 per cent)
are sold loose / unpackaged.
The proportion of the market accounted for by packaged milk and dairy products are
increasing, however. In the past four years, for example, demand for milk filled in
pouches has grown by 4.5 per cent annually, while the figure for milk in cartons is
about 25 per cent. The rising consumption is making it necessary for appropriate
investments to be made by the beverage industry.
The sector is highly fragmented and 95 per cent of these producers have small or
very small operations. Of this, the health beverage industry is valued at $230 million.
The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than half of this is available in unpacked or loose form. Indian hot
beverage market is a tea dominant market. Consumers in different parts of the
country have heterogeneous tastes. Dust tea is popular in southern India, while
loose tea in preferred in western India. The urban-rural split of the tea market was
51:49 in 2000. Coffee is consumed largely in the southern states. The size of the
total packaged coffee market is 19,600 tonnes or $87 million.
4
The total soft drink (carbonated beverages and juices) market is estimated at 284
million crates a year or $1 billion. The market is highly seasonal in nature with
consumption varying from 25 million crates per month during peak season to 15
million during offseason. The market is predominantly urban with 25 per cent
contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks
market. Mineral water market in India is a 65 million crates ($50 million) industry. On
an average, the monthly consumption is estimated at 4.9 million crates, which
increases to 5.2 million during peak season.
The market is predominantly urban with 25 per cent contribution from rural
areas.
Coca cola and Pepsi dominate the Indian soft drinks market.
Indian Mineral water market size : 50 million industry.
Economic growth
Population growth
Power of retailers
Globalization / Regionalization
Technological Developments
Governance Issues
A typical challenge in the Indian beverage sectors fight against corruption is the
complex interrelationship between politics and the private sector. Strong governance
is clearly vital for companies to ensure the integrity of their organizations,
relationships with consumers and government authorities to avoid corrupt business
practices.
Companies should look to providing more transparency and accountability in terms
of the selection of board members, remuneration, links between remuneration and
performance, diversity of the board and decision making processes.
Alcohol companies should ensure a high level of transparency in terms of the
financial support provided for industry groups that in turn lobby national
governments for changes in alcohol policies
Companies should put in place initiatives and get involved in collective action to
raise corporate integrity, especially in relation to corruption and bribery.
Environmental Issues
Companies need to first assess to what extent they and their suppliers depend on
water and the associated risks. This should be done in consultation with key
stakeholders.
Companies need to realize that global commitments to improve water efficiency can
only be implemented locally, requiring versatility and local management support.
Companies should disclose water performance and the initiatives that they are
putting in place.
Companies need to assess their contribution to climate change, put in place
measures to reduce emissions and waste and report on progress.
STRENGTH
Availability of key raw materials, cheaper labor costs and presence across
the entire value chain gives India a competitive advantage.
WEAKNESS
OPPORTUNITIES
Market globalization
THREATS
10
Leading Players
There are so many large companies present in India who are leading players in the
Indian Beverages Industry. The companies are having large annual turnovers with
wide range of product portfolios which include all kinds of beverage drinks from
soda to energy drinks. These companies are having a large variety of products like
soda, water, Colas, Fruit based drinks, Lemon based drinks, Milk beverages, and
Fruit based wine, beer, Whisky, Coffee, and Tea etc. with so many health and
energy drinks portfolio.
These companies have a strong distribution and marketing channel which supply
the beverages products to customers through retailers, Coffee shops, Restaurant,
Hypermarket and Supermarkets. The segment is highly distributed all over the
country through a long chain of retailers and suppliers who are providing very
efficient service to the company.
The leading Indian Beverage sector players are as follows:
1.
Coca-Cola Company
2.
PepsiCo
3.
UB Group
4.
5.
6.
Nestl India
7.
8.
leading
manufacturer,
marketer,
and
distributor
of
nonalcoholic
beverage concentrates and syrups, used to produce nearly 400 beverage brands.
The company makes and distributes sodas, waters, fruit juice, teas and coffees and
energy drinks. Through the world's
largest
beverage
distribution
system,
consumers in more than 200 countries drink the company's beverages at a rate
exceeding 1.5 billion servings each day. Major brands include Coke, Diet Coke,
Sprite, Bacardi, A&W, Minute Maid, Dasani, Nestea, PowerAde and Hi C.
in the north Indian state of Punjab. Kandhari Beverages Ltd is among Coca-Cola
India's top 4 franchisee bottlers. Over a period of time, the Group ventured deep into
Aerated Water business and expanded its scope of operations to other Indian states
including Punjab, Haryana, Chandigarh and Himachal Pradesh.
In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought
over PARLE brand of soft drink products, being one of the star bottlers of PARLE the
Group switched to manufacturing, bottling & marketing of Coke brand of soft drink
products
Distribution Network.
Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local
account management at the store level.
Indirect distribution: In indirect distribution, an organization which is not part of the
Coca-Cola system has control on one or more of the distribution elements (Sales,
delivery, merchandising and local account management).
Merchandising: Merchandising means communication with the consumer at the
point of purchase to convey product benefit, value and Quality. Sales people and
delivery personnel both have this responsibility. In certain locations special teams
who go into business locations to specifically merchandise our products.
Distribution Chain
13
Coca Cola India Co. LTD has a wide and well managed distribution network.
A typical distribution chain at KO would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution
Warehouse --- Retail Stock --- Retail Shelf --- Consumer
The customers of the Company are divided into different categories and different
routes, and every salesman is assigned to one particular route, which is to be
followed by him on a daily basis. A detailed and organized distribution system
contributes to the efficiency of the salesmen. It also leads to low costs; higher sales
and higher efficiency thereby lead to higher profits to the firm.
The departments that are involved in the distribution system are shipping and
warehousing department, finance department and distribution department.
14
One of the early investors in India, the Coca-Cola system provides direct and
indirect employment to more than 1, 50,000 people.
The Coca-Cola System in India has more than 1 million retailers and our business
has a multiplier effect on employment and earning opportunities. Coca-Cola in India
is the largest domestic buyer of sugar and one of the top buyers of mango pulp. The
Coca-Cola System in India business also positively impacts industries like Glass,
Plastics, Resin Manufacturers, Sugar, Automobiles, White Goods Manufacturers,
Banking etc.
The Coca-Cola Company has always placed high value on good citizenship. At the
heart of business is a mission statement called the Coca-Cola Promise - The CocaCola Company exists to benefit and refresh everyone that it touches.
This basic proposition entails that the Companys business should refresh the
markets, protect, preserve and enhance the environment and strengthen the
community. Coca-Cola India provides extensive support for community programs
across the country, with a focus on education, health and water conservation. The
Company has installed more than 500 rain water harvesting structures in the
country. The Company has also undertaken the rejuvenation and reconstruction of
several traditional water bodies including check dams.
We are also working towards providing clean drinking water to school children in
Chennai and areas in West Bengal in partnership with Rotary International and UN
Habitat respectively. The Company is committed to work with communities across
India in its effort to contribute to mutual growth and development.
16
17
Business in India
Coca-Cola is a leading player in the Indian beverage market with a 60 per cent
share in the carbonated soft drinks segment, 36 per cent share in fruit drinks
segment and 33 per cent share in the packaged water segment.
18
In keeping with its goal of emerging as the single largest entity in the beverage
market, Coca-Cola has a presence in multiple segments.
Carbonated soft drinks (Coke, Diet Coke, Fanta, Thums Up, Sprite and
Limca)
Fruit juice based drinks (Maaza)
Powdered soft drinks (Sunfill)
Coffee and tea (Georgia)
Bottled water (Kinley) and Bottled soda (Kinley Soda)
The company leverages this comprehensive portfolio, which includes a mix of its
global brands as well as the locally acquired brands like Thums Up, Limca and
Maaza
It sells these beverages in multiple volumes of 200 ml, 300ml, 500ml, 1.5 l
bottles, tetra packs as well as through vendors (fountain machines)
Explores new markets with the introduction of new drinks (Georgia, coffee and
tea segment) and flavors (Vanilla Coke)
20
TYPES OF PRODUCTS(BRANDS)
1. COCA COLA
The worlds favorite drink.The worlds most valuable brand.The most
recognizable word across the world after OK. Coca Cola has a truly
remarkable heritage from a humble beginning in 1886, it is now the
flagship brand of the largest manufacturer, marketer and distributor of
non- alcoholic beverages in the world.
2. THUMS UP
It is a leading sparkling soft drink and most trusted brand in India.
Originally introduced in 1977, Thums up was acquired by the Coca Cola
Company in 1993.This brand known for its strong, fizzy taste and its confident,
mature and uniquely masculine attitude.
3. SPRITE
Sprite is global leader in the lemon line category, is the largest parkling
beverage brand in India. Launched in 1999, Sprite with its cut thru
perspective has managed to be a true teen
21
FANTA
Fanta has entered in Indian market in the year 1993.Fanta stands for its
vibrant color, tempting taste and tingling bubbles
LIMCA
Born in 1971,Limca has remained unchallenged as the No. 1 sparkling Drink
in the cloudy lemon segment. The main point in the brand is the Freshness.
PULPY ORANGE
The company developed a process that eliminated 80 % of the water in orange
juice forming a frozen concentrate that when reconstituted created orange
juice.
Available in 400 ml,1 L and 1.25 L and also in PET pack size.
MAAZA
Mango. It is a fruit associated with good times like no other. Its called the
king o fruits.
KINLEY
Kinley water understands the importance and value of the life giving fore.Kinley
water comes with the assurance of safety from the Coca-Cola Company.
Coca-Cola introduced Kinley with reverse osmosis along with latest
technology.
Available in 500ml,100ml in PET.
22
GEORGIA GOLD
Introduced in 2004,the Georgia gold of tea and coffee beverage is perfect
solution for the office and restaurant needs!It is available at quick service
restaurant, Cinemas, Airports and in Coporates across all major matros in
India.
Hot Bevarges : Espresso, Americano, Cappucino, Caffe Latte, Machaccino , Hot
chocolate, Cardamom Tea
Cold Bevarages: Iced Teas,Cold Coffee
RED
23
Cooler
Channel Activation
RED works on three categories :
OBJECTIVES OF RED:
It lays down the standards for brand norms, in outlet activation elements
It lays down specific norms for enhanced in outlet brand execution
It tracks the brands and brand pack penetration
It allows for development of short, mid and long term strategies, tactic plans
Due to audit characteristic of RED, each brand can be measured against specific
execution goals.
BENEFITS OF RED:
25
RED helps to find out the promotion activities of the company and help to
make relevant changes according to their rivalry company.
This study ensures the availability of the product in the market.
The study also helps in the evaluation of the market developer .RED helps to
maintain the outlets in a well designed way to attract consumers.
26
RECOMMENDATIONS
This is one of the most important and most difficult part of the study. I arrived at
certain recommendations for COCA-COLA co India after the analysis of the data.
Some of the important recommendations are as follows.
Some Retailers wants large size of visi coolers. So this should be also taken
into consideration.
We need to come up with more pack sizes because RGB is losing its market.
We need to come with more flavors because Real Juices and Tropicana
Juices are leading the market with 12-15 flavors.
We need to focus on margins because retailers go their where they get high
margins on product.
We must visit all RED outlets where the activation elements are missing and it
must be activated immediately.
The company should make hindrance free arrangement for its customers to
make any feedback or suggestions.
27
The visibility of any product plays an important role in making the customer,
aware about it and is vital for the growth and development of any product.
28