SUMMER

TRAINING
PROJECT
BY:-RAHUL PANDITA
TOPIC: DISTRIBUTION NETWORK OF COCA COLA
GUIDED BY – MR. SATISH BHAWANI
MR. RAHUL MAGOTRA
The world’s most recognized trademark it is recognized
by 94% of the world’s population.
 DECLARATION

I hereby declare that this internship report on DISTRIBUTION NETWORK OF COCA

COLA at HINDUSTAN COCA COLA BEVERAGES PVT. LTD. submitted in partial
fulfillment of the requirement for III Semester MBA Degree. This work has been done
under the supervision of Prof. JANKI MISTRY in VEER NARMAD SOUTH GUJARAT
UNIVERSITY.

DATE: 7th july 2019

CERTIFICATE OF THE COMPANY
 CERTIFICATE OF DEPARTMENT

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

VEER NARMAD SOUTH GUJARAT UNIVERSITY

CERTIFICATE

To whomsoever it may concern

This is to certify that Mr. Rahul Pandita has completed his summer training
at coca cola, Jammu as a part of MBA curriculum. He has successfully
completed a study on “ DISTRIBUTION NETWORK OF COCA COLA”.

His work is found to be of the standard required for summer training of

MBA curriculum.

Dr. Janki Mistry Dr. Renuka Garg

(Project Supervisor) (Head of Department)

 ACKNOWLEDGEMENTS

An internship report is a result not only of the student who prepared it, but also the combine

effort of the faculty guide and members of the institute where the project is done and most
importantly the advisor who gives the final touch.

. I extend my heartfelt thanks to Mrs. RUCHITA (HR Manager) and VEER NARMAD

SOTH GUJARAT UNIVERSITY for providing me with a platform to experience the

corporate world in its true form. Such trainings are a great way to instill in a student the
confidence to face the corporate world at the time of the final placements

The compilation of the project is a milestone in the life of the management student and its
execution is inevitable with the co-operation of the project guide. I wish to record a deep
sense of respect and gratitude to my project guide, Mr. SATISH BHAWANI for their
encouragement to course of my work.

Lastly, no words are enough to express my heartiest gratitude to my all Faculties VEER
NARMAD SOUTH GUJARAT UNIVERSITY of whose encouragement inspires me in the
foundation of my work.
EXECUTIVE SUMMARY
Selling the product is not as important as awareness about the product. Awareness creates
the demand itself. To spread the awareness of the products companies carry out some
promotional activities through television , radio, newspaper , magazines ,exhibition ,
posters etc. This plays a key role to spread the awareness about the product to the public or
target customer. In soft drink industry promotions participate a very crucial role. Every
soft drink company bring into play promotional activity to promote their product in the
market. In soft drink industry coca cola enjoys the biggest soft drink company in the
world.

This era is the era of competition. All the companies are competing with each other. They
are using different promotional tools and techniques to be the market leader. In beverage
industry there are two major players coca cola and pepsico. where coca cola have no.1
position in the world as well as in India. Company wants to grasp more market share, for
that purpose company have launched new sales promotion concept recently in the market.
According to this concept company provides some tools like Flange, table top, Ariel mobile
hanger, three tier racks etc. to the retail outlet to display the product in outlets. This helps
in increasing the sale of the products.

Market provides a key to gain actual success only to those companies which match best to
the current environment i.e. “imperative” which can be delivered what are the people
needs and they are ready to buy at the right time without any delay. It is perfectly true but
this also depends on the availability of good quality products and excellent services, which
further attract and add a golden opportunity plus sufficient amount of products for sales in
the coming next financial year.

This study report will provide an opportunity to know retailers psychographic needs, it
may provide an opportunity to the coca cola to frame a good future plan to satisfy
maximum needs, taste preferences of the retailers and established its guiding role in the
market of Jammu region.

An analysis report provides detailed information about prevailing status of promotional

tools of the company in the outlets. And which channels need to focus more so that
company can meet with its desired destination. Thus the company has to prepare itself to
meet the market challenge by making adjustment in its new strategy and promotional tools.
OBJECTIVES OF THE STUDY:
1. The survey was done to know the current status of activation element of coca cola in the
outlets.

2. To know the effect of the activation elements of coca cola in market.

3. To increase incidence through effective utilization of activation elements of coca cola in

the outlets.

4. To ensure the visibility of coca cola products in the outlets.

5. To find out the present status of coca cola brands in the retail outlets.

SCOPE OF THE STUDY:

1. This study will help the company to know about their new concepts position in the
market.

2. This study will help the company also to know about its promotional activities.

3. Through this study company will know about the visibility of its products in the market.

4. This study will help the company to increase the sales through effective utilization of
activation

elements.

5. During my project i came to know about pepsi.co marketing strategy that is the biggest

competitor of coca cola.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

1.1: A brief insight- The FMCG Industry in India

1.2: A brief insight- The Beverage Industry in India

Figure 1: Beverage Industry in India

CHAPTER 2: THE COCA-COLA COMPANY

2.1: History of coca-cola jammu

2.2: History of coca-cola jammu plant

2.3 ManIfesto for growth

2.3.1 Values

2.3.2 Vision

2.3.3 Mission

2.3.4 Quality policy

2.4 Bottling

Figure 2 Contour bottle design

2.4.1: COCA-COLA bottling history

2.4.2 The Coca-Cola Bottle over the Years

Figure 3: The Coca-Cola Bottle over the Years

2.5: Production

2.5.1 Coca-cola formula

2.5.2 Logo design

2.5.3 Manufacturing unit of HCCBPL

2.5.3.1 Manufacturing Process

CHAPTER 3: DISTRIBUTION NETWORK

3.1 Distribution routes

3.2 Distribution system

3.3 Departments involved in the distribution process

3.4 Swot analysis of HCCBPL

CHAPTER 4: PRODUCTS

4.1 Packaging details

CHAPTER 5: RESEARCH METHODOLOGY

5.1 Sampling

5.2 Research design

5.3 Data collection method

5.4 Data collection technique

CHAPTER 6: DATA ANALYSIS

CHAPTER 7: FINDINGS

7.1 Major findings

7.2 Suggestion

7.3 Conclusion

Biblography
CHAPTER 1: INTRODUCTION

• Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer,
marketer and distributor of non-alcoholic beverage concentrates and syrups, used to
produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling
and canning operators, distributors, fountain retailers and fountain wholesalers. The
Company’s beverage products comprises of bottled and canned soft drinks as well as
concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also
produces and markets sports drinks, tea and coffee. The Coca-Cola Company began
building its global network in the 1920s. Now operating in more than 200 countries and
producing nearly 400 brands, the Coca-Cola system has successfully applied a simple
formula on a global scale: “Provide a moment of refreshment for a small amount of money-
a billion times a day.”

• The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that
system is dedicated to people working long and hard to sell the products manufactured by
the Company. This unique worldwide system has made The Coca-Cola Company the
world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,
Coca-Cola, more than any other consumer product, has brought pleasure to thirsty
consumers around the globe. For more than 115 years, Coca-Cola has created a special
moment of pleasure for hundreds of millions of people every day.

• The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver .

• Satisfaction and value to consumers through a worldwide system of superior brands and
services, thus increasing brand equity on a global basis. They aim at managing their
business well with people who are strongly committed to the Company values and culture
and providing an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure compliance
with the framework of policies and protect the Company’s assets and resources whilst
limiting business risks.
1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

• Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG) are products that have a quick turnover and relatively low cost. Consumers
generally put less thought into the purchase of FMCG than they do for other products.

• The Indian FMCG industry witnessed significant changes through the 1990s. Many
players had been facing severe problems on account of increased competition from small
and regional players and from slow growth across its various product categories. As a
result, most of the companies were forced to revamp their product, marketing, distribution
and customer service strategies to strengthen their position in the market.

• By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian
customer witnessed an increasing exposure to new domestic and foreign products through
different media, such as television and the Internet. Apart from this, social changes such as
increase in the number of nuclear families and the growing number of working couples
resulting in increased spending power also contributed.

• To the increase in the Indian consumers' personal consumption. The realization of the
customer's growing awareness and the need to meet changing requirements and
preferences on account of changing lifestyles required the FMCG producing companies to
formulate customer-centric strategies. These changes had a positive impact, leading to the
rapid growth in the FMCG industry. Increased availability of retail space, rapid
urbanization, and qualified manpower also boosted the growth of the organized retailing
sector

• HLL led the way in revolutionizing the product, market, distribution and service formats
of the FMCG industry by focusing on rural markets, direct distribution, creating new
product, distribution and service formats. The FMCG sector also received a boost by
government led initiatives in the 2003 budget such as the setting up of excise free zones in
various parts of the country that witnessed firms moving away from outsourcing to
manufacturing by investing in the zones.

• Though the absolute profit made on FMCG products is relatively small, they generally
sell in large numbers and so the cumulative profit on such products can be large. Unlike
some industries, such as automobiles, computers, and airlines, FMCG does not suffer from
mass layoffs every time the economy starts to dip. A person may put off buying a car but he
will not put off having his dinner.

• Unlike other economy sectors, FMCG share float in a steady manner irrespective of
global market dip, because they generally satisfy rather fundamental, as opposed to
luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest
sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making
up 32% of the sector, is the South Indian region.

• The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the
Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of
the sector, is the South Indian region. It is predicted that in the year 2014, the FMCG
sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the
Indian Economy .

• It will provide up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories:

The FMCG sector consists of the following categories:-

• Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants
and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the
major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and
Procter & Gamble.

• Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household
cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito
repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever
Limited, Nirma and Ricket Colman.

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

• Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB
1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

• In India, beverages form an important part of the lives of people. It is an industry, in

which the players constantly innovate, in order to come up with better products to gain
more consumers and satisfy the existing consumers.

• BEVERAGES

• Alcoholic

• Non-Alcoholic

• Carbonated

• Non-carbonated

• Cola

• Non-Cola

BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:

• Alcoholic,

non-alcoholic and

sports beverages

• Natural and Synthetic beverages

• In-home consumption and out of home on premises consumption.

• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens

• Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.

• If the behavioral patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and
that beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.

• Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

•The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.

•The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.

• Consumer education is a must to bring out benefits of beverage consumption whether in

terms of health, taste, relaxation,

• stimulation , refreshment, well-being or prestige relevant to the category.

• Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

• The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for
brand and sales growth in turn to add up to the overall growth of the food and beverage
industry in the economy.
 CHAPTER 2: THE COCA-COLA COMPANY

2.1: HISTORY

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

•Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and
penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He
suggested that “the two Cs would look well in advertising.” The first newspaper ad for
Coca Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new
and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola”
appeared on store awnings, with the suggestions “Drink” added to inform passersby that
the new beverage was for soda fountain refreshment.

• By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a
distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton
grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of
the beverage he created. He gradually sold portions of his business to various partners
and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G.
Candler, an entrepreneur from atlanta

• By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete
ownership and control of the Coca-Cola business. Within four years, his merchandising
flair had helped expand consumption of Coca-Cola to every state and territory after which
he liquidated his pharmaceutical business and focused his full attention on the soft drink.
With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and
two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola
Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered
in the United States Patent Office on January 31, 1893.

• The business continued to grow, and in 1894, the first syrup manufacturing plant outside
Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los
Angeles, California, the following year. In 1895, three years after The Coca-Cola
Company’s incorporation, Mr. Candler announced in his annual report to share owners
that “Coca-Cola is now drunk in every state and territory in the United States.”

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

• Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company
instant ownership of the top soft drink brands of the nation. With access to 53 of Parle’s
plants and a well set bottling network, an excellent base for rapid introduction of the
Company’s International brands was formed. The Coca-Cola Company acquired soft
drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as
these products had achieved a strong consumer base and formed a strong brand image in
Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part
of range of products of the Coca-Cola Company.

• In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry
into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the
Coca-Cola Company. However, this was based on numerous commitments and stipulations
which the Company agreed to implement in due course. One such major commitment was
that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of
resident shareholders by June 2002.

• Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing

locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned
Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the
manufacture process of a range of products for the company. It also has a supporting
distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all
goods and services required to cater to the Indian market are made locally, with help of
technology and skills within the Company. The complexity of the Indian market is reflected
in the distribution fleet which includes different modes of distribution, from 10- tonne
trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian
cities and trademarked tricycles and pushcarts.
• “Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life
ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted
in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between
2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the
new packaging of 200 ml returnable glass bottles which were made available at a price of
Rs.5 per bottle. This new market accounted for over 80% of India’s new Coca-Cola
drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their
business should benefit, thereby inducing them to uphold these values, enabling the
Company to achieve success, recognition and loyalty worldwide. location of cobo fobo and
contract packing in india LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING
IN INDIA .

2.2 COCA COLA JAMMU PLANT HISTORY

J&k is a state with very diverse geographical and ecological environment. Mainly it has
three provinces i.e. Srinagar, Jammu and Ladakh.

It has two plants, which are situated at Jammu city and Srinagar .Srinagar plant is not in
operation at present. Jammu plant is of Ground Field Plant (not constructed by the
company) (other category of plant is Green Field Plant – constructed by the coca cola
company e.g. Dasna plant).

For Jammu Location distribution is almost totally indirect and company has 62
distributors and more than 12500 customers all across the length and breadth of J&K from
Kathua to Jammu, Rajouri , Poonch, Doda, Kishtawar, Anantnag, Baramulla, and Leh-
Ladakh.

Despite much of the supply chain function being centrally managed there is still vital
importance of local suppliers for Jammu location. J&K being at the end of country’s north
difficult accessibility’s additional taxation is important issues for supply chain.

There is definitely need of vendor development in case of supply of many services and
materials.
2.3 MANIFESTO FOR GROWTH :

2.3.1: VALUES :
The values that the employees in the Company are expected to keep up to and work by
regularly are as follows:

1. LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy
and zeal, to deliver outstanding results.

2.INNOVATION: To continuously strive for progress and reach the next level of excellence
in everything we do.

3. PASSION: To be deeply committed and display drive and energy in the quest to deliver
outstanding performance.

4.TEAMWORK: To unite for greater strength and work collectively as a group towards
the achievement of common goals.

5. OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the
lowest appropriate level.

6.ACCOUNTABILITY: To be individually and transparently accountable to our

colleagues for delivering agreed targets and goals.

2.3.2: VISION:

To achieve sustainable growth; we have established a vision with clear goals.

1. PROFIT: Maximizing return to shareowners while being mindful of our overall

responsibilities.

2. PEOPLE: Being a great place to work where people are inspired to be the best they can
be.

3. PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy people’s desires and needs.

4. PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

5. PLANET: Being a responsible global citizen that makes a difference.

2.3.3: MISSION

•To create consumer products, services and communications, customer service and bottling
system strategies, processes and tools in order to create competitive advantage and deliver
superior value to; Consumers as a superior beverage experience

•Consumers as an opportunity to grow profits through the use of finished drinks

•Bottlers as an opportunity to grow profits in volumes

•Bottlers as a trademark enhancement and positive economic value added

•Suppliers as an opportunity to make reasonable profits when creating real value-added in

an environment of system-wide team work, flexible business system and continuous
improvement

•Indian society in the form of a contribution to economic and social development.

2.3.4: QUALITY POLICY

• “To ensure customer delight, we commit to quality in our thoughts, deeds and actions by
continually improving our processes…Every time.”
2.4 BOTTLING :

2.4.1 HISTORY OF BOTTLING

• Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
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.
YEAR WISE HISTORY OF BOTTLING:

• Year 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 Coca-Cola be bottled, but Candler focused on
fountain sales.

YEAR 1899: THE FIRST BOTTLING AGREEMENT

• Two young attorneys from Chattanooga, Tennessee believed they could build a business
around bottling CocaCola. 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 a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their
venture.

YEARS 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.

YEAR 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. The Contour Bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized
icons in the world.
IN THE 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.

IN THE 1920S AND 1930S: 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.

IN THE 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 wartime plants were later converted to
civilian use, permanently enlarging the bottling system and accelerating the growth of the
Company's worldwide business.

IN THE 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 26 ounce
versions. Cans were also introduced, becoming generally available in 1960.
IN THE 1960S: INTRODUCTION OF NEW BRANDS

• 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
customers

• Advancement in technology led to global economy, retail customers of The Coca-Cola

Company merged and evolved into international mega chains. Such customers required a
new approach.

IN THE 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: COCA-COLA TODAY

• 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.
2.4.2 COCA COLA BOTTLES OVER THE YEARS

COCA-COLA BOTTLES OVER THE YEARS

2.5 PRODUCTION

INGREDIENTS:

• Carbonated water

Sugar (sucrose or high-fructose corn syrup depending on country of origin)

• Caffeine

• Phosphoric acid

• Caramel color (E150d)

• 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.

2.5.1 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
was held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in
1919. On December 8, 2011, the original secret formula was moved from the vault at
SunTrust Banks to a new vault containing the formula which will be on display for visitors
to its World of Coca-Cola museum in downtown Atlanta.

• A popular myth states that only two executives have access to the formula, with each
executive having only half the formula The truth is that while Coca-Cola 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.

2.5.2 LOGO DESIGN

• The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason
Robinson, in 1885.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.

2.5.3: MANUFACTURING UNIT OF HCCBPL

• The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and one
of the bottling operations owned by the company. The Plant has one PET line which has
the capacity of yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines
which yields 600 bottles per minute each and one Juice line which yield 155 bottles per
minute. It caters to the whole of South Karnataka through a network of more than 80
distributors. There are three depots in Bangalore; North Depot, East Depot and Mega
Depot.

Manufacturing process involves the following process:

• The manufacturing of the products of Coca-Cola involves the following steps:

• Water is received from the River Cauvery and it passes through the water treatment
plant, further passing through the sand filter and the activated carbon filter, so as to
attain pure cleansed water.

• In the syrup room, the concentrate received from another bottling plant situated at Pune,
is blended with the sugar syrup

• Once both the water and the final syrup are ready, they are both mixed together and sent
to the carbonator section where Carbon Dioxide is added to the mixture to form the final
product.

• On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected
and washed for the purpose of filling in the final product in it. This step does not take place
in the PET bottle line as the bottles once used are disposed.

•The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of
PET bottles), labeled and cased in order to be sent into the warehouse for distribution.
2.5.3.1 MANUFACTURING PROCESS :
CHAPTER 3: DISTRIBUTION NETWORK

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

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse - -- Retail
Stock --- Retail Shelf --- 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 called as beat. A detailed and well organized distribution system contributes to
the efficiency of the salesmen or MD. It also leads to low costs, higher sales and higher
efficiency thereby leading to higher profits to the firm.

3.1: DISTRIBUTION ROUTES

•The various routes formulated by HCCBPL for distribution of products are as follows:

• Key Accounts: The customers in this category collectively contribute a large chunk of the
total sales of the Company. It basically consists of organizations that buy large quantities of
a product in one single transaction. The Company provides goods to these customers on
credit, payments being made by them after a certain period of time i.e. either a month of
half a month.

• Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Hotel ASIA

•Future Consumption: This route consists of outlets of Coca-Cola products, wherein a

considerable amount of stock is kept in order to use for future consumption. The stock does
not exhaust within a day or two, instead as and when required stocks are stacked up by
them so as to avoid shortage or non availability of the product. Examples: Departmental
stores, Super markets etc.

.Immediate Consumption: The outlets in this route are those which require stocks on a
daily basis. The stocks of products in these outlets are not stored for future use instead, are
exhausted on the same day and might run a little into the next day i.e. the products are
consumed at a fast pace.

• Examples: Small sized bars and restaurants, educational institutions etc.

• General: Under this route, all the outlets that come in a particular area or an area along
with its neighboring areas are catered to. The consumption period is not taken into
consideration in this particular route.

3.2: DISTRIBUTION SYSTEM

• Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local account
management at the store level.

• Indirect distribution: In indirect distribution, an organization which is not part of the

Coca-Cola system has control on one or more of the distribution elements (Sales, delivery,
merchandising and local account management).

• Merchandising: Merchandising means communication with the consumer at the 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.

• 3.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

• The Distribution process mainly consists of three departments:

• Distribution Department: It appoints distributors and establishes a distribution network,

processes approved sale orders and prepares invoices, arranges logistics and ship products,
co-ordinates with distributors for collections and monitors distribution stocks and their set-
up.

• Finance Department: It checks credit limits and approves sales orders in compliance with
the credit policy followed by the firm, records collections from distributors, periodically
reconciles outstanding balances from distributors, obtains balance confirmation from
distributors and follows up outstanding balances.

•Shipping or Warehousing Department: It dispatches goods as per approved by order,

ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out
area and updates warehouse stock records in a timely manner.
3.4: SWOT ANALYSIS OF HCCBPL
STRENGTHS :

• DISTRIBUTION NETWORK: The Company has a strong and reliable distribution

network. The network is formed on the basis of the time of consumption and the amount of
sales yielded by a particular customer in one transaction. It has a distribution network
consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors.
The distribution fleet includes different modes of distribution, from 10-tonne trucks to
open-bay three wheelers that can navigate through narrow alleyways of Indian cities and
trademarked tricycles and pushcarts.

• STRONG BRAND IMAGE: The products produced and marketed by the Company have
a strong brand image. People all around the world recognize the brands marketed by the
Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to
the brand name of the Coca-Cola Company as a whole. The red and white CocaCola is one
of the very few things that are recognized by people all over the world. Coca-Cola has been
named the world's top brand for a fourth consecutive year in a survey by consultancy Inter
brand. It was estimated that the Coca-Cola brand was worth $70.45billion.
(http://news.bbc.co.uk/1/hi/business/4706275.stm)

•LOW COST OF OPERATIONS: The production, marketing and distribution systems

are very efficient due to forward planning and maintenance of consistency of operations
which minimizes wastage of both time and resources leads to lowering of costs.

Distribution is done both in primary and secondary:

• Primary means from manufacturer plant to distributors godown.

• Secondary means from distributors godown to retailers outlet.

• All the working members of coke have to look after both the primary and secondary
activities. Distributors in jammu city

• In jammu city there are 8 distributors out of which upon 4 I have worked.(top four)

• Sri Sai distributors ( Rehari Chungi)

• BEE EMM traders (Janipur)

• Khajuria Traders (Poonch House, Talab Tillo)

• Sahil Enterprises (Talab Tillo)

• MSD traders (Bus Stand)

• Friends cold drink (Sangrampur)

• Dheer cold drink (Lower Paloura)

• Out of all 8 Sahil enterprises is leading with 23% growth.

REASONS FOR GROWTH:-

• Large area to cover. A tough thing but still managed to use it positively.

• Full dedication towards work.

• Better contacts with shopkeepers. Stock in Pet and RGB is sold in different volume from
different distributors. Ranging in an average from 200 units to 500 units per day, per
distributor depending upon area Also there is a RTM who looks after route to market
briefly known as supply chain of the coca cola company. Targets are being set for each and
every distributor , from the top management to lower order everyone is given target to
achieve . Certain benefits and incentives are there upon showing skills of management.

VIZIES

In coke language vizies means refrigerator. A container to cool the containers. In jammu
city there are

5 types of vizies .

These are:-

• 7 caser

• 9 caser

• 15 caser
• 20 caser

• 30 caser

• Each vizi is provided to shopkeepers keeping in view its market area consumption...
More consumption bigger the size of vizi..

WEAKNESSES:

• LOW EXPORT LEVELS: The brands produced by the company are brands produced
worldwide thereby making the export levels very low. In India, there exists a major
controversy concerning pesticides and other harmful chemicals in bottled products
including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a
nongovernmental organization in New Delhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and CocaCola, contained
toxins including lindane, DDT, malathion and chlorpyrifospesticides that can contribute to
cancer and a breakdown of the immune system. Therefore, people abroad, are
apprehensive about Coca-Cola products from India.

• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND

ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried out on a
small scale and due to Government restrictions and ‘red-tapism’, the Company finds it
very difficult to invest in technological advancements and achieve economies of scale.

OPPORTUNITIES :

•LARGE DOMESTIC MARKETS: The domestic market for the products of the Company
is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a
58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola
market. Other products account for 16 per cent market share, chiefly led by Limca. The
company appointed 50,000 new outlets in the first two months of this year, as part of its
plans to cover one lakh outlets for the coming summer season and this also covered 3,500
new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.

• EXPORT POTENTIAL: The Company can come up with new products which are not
manufactured abroad, like Maaza etc and export them to foreign nations. It can come up
with strategies to eliminate apprehension from the minds of the people towards the Coke
products produced in India so that there will be a considerable amount of exports and it is
yet another opportunity to broaden future prospects and cater to the global markets rather
than just domestic market.

• HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an

increase in the per capita income thereby causing an increase in disposable income. Unlike
olden times, people now have the power of buying goods of their choice without having to
worry much about the flow of their income. The beverage industry can take advantage of
such a situation and enhance their sales.

THREATS:

• IMPORTS: As India is developing at a fast pace, the per capita income has increased over
the years and a majority of the people are educated, the export levels have gone high.
People understand trade to a large extent and the demand for foreign goods has increased
over the years. If consumers shift onto imported beverages rather than have beverages
manufactured within the country, it could pose a threat to the Indian beverage industry as
a whole in turn affecting the sales of the Company.

• TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a

variety of regulations at each stage on the consequence from production to consumption.
When a license is issued, the production capacity is mentioned on the license and every time
the production capacity needs to be increased, the license poses a problem. Renewing or
updating a license every now and then is difficult. Therefore, this can limit the growth of
the Company and pose problems.

•SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not
without its problems: Low per capita disposable incomes that is half the urban disposable
income; large number of daily wage earners, acute dependence on the vagaries of the
monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor
roads; power problems; and inaccessibility to conventional advertising media. All these
problems might lead to a slowdown in the demand for the company’s products.

3.10: COMPETITORS TO HCCBPL

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

The key competitors in the industry are as follows:

• PEPSICO: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks
include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo
sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo
also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together,
a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to
Pepsi.

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

• DABUR: Dabur in India, is one of the most trusted brands as it has been operating ever
since times and people have laid all their trust in the Company and the products of the
Company. Apart from food products, Dabur has introduced into the market Real Juice
which is packaged fresh fruit juice. These products give a strong competition to Maaza and
the latest product Minute Maid Pulpy Orange.
CHAPTER 4: PRODUCTS
•The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices and bottled mineral water. The Company is always looking to
innovate and come up with, either complete new products or new ways to bottle or pack the
existing drinks. The Coca-Cola Company has a wide range of products out of which the
following products are marketed by HCCBPL:

• In the Cola Section:

 IN LEMON SECTION:
 • IN ORANGE SECTION:

 IN JUICE SECTION:
4.1 PACKAGING DETAILS :

Coca-Cola, Thums Up, Fanta , Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable
glass bottles; 500+100ml, 1.5lt and 2 litre PET bottles.

200ml 300ml 300ml 600ml

2lt

Diet Coke: 330 ml can and 500 ml PET bottle:

330ml

500ml
 • MAAZA : 200 ml and 250 ml Returnable Glass Bottle;
500+100 ml and 1litre+200 ml free PET bottles and the newly
introduced 200 ml Tetra Pack :

• Minute Maid Pulpy Orange: 400 Ml And 1 Litre Pet Bottles:

400ml 1lt

• Kinley Soda Water: 300 Ml Returnable Glass Bottles, 500+100 Ml

Free And 1.5 Litre PET Bottles:
CHAPTER 5: RESEARCH METHODOLOGY
5.1 Sampling:
Sampling consists of

• Sampling unit: The retailer of Grocery shop, general store, provision store, tea stall
and dhaba walas was selected from different places of jammu city.

•sample size: 150 Outlets.

• Sampling procedure: Simple random sampling procedure was followed

• Sampling method: Data were collected by retailer survey. The retailers are directly
contacted and interviewed at their retail counter.

5.2 RESEARCH DESIGN

The research was divided into two parts they were:

1. survey

For the survey purpose i visited three places

a) Bus stand area which had crowded places like bus stand, jewel, indira chowk.

b) Railway station.

c) canal road, resham garh, bakshi nagar.

As per the route planner provided by the company the survey was conducted through
questionnaires. The route planner consisted the list of RED OUTLETS.

DETAILS OF RED OUTLETS:

The Red outlets are divides as:

1. IRON

2. BRONZE
3. SILVER

4. GOLD

5. DIAMOND

The basis for the above division are as follows:

 Iron outlets are the outlets those are newly opened.

 Bronze outlets are those outlets who sells less than 199 cases a year.
 Silver outlets are those outlets who sells 200 cases to 499 cases a year.
 Gold outlets are those outlets who sells 500 cases to 799 cases a year.
 Diamond outlets are those outlets who sells 800 and above cases a year.

2. Implementation:
After the survey was conducted the implementation work was carried out for the
surveyed outlets, during the remaining period i.e. 16 weeks.

In this procedure the visits were made to the outlets along with the company vehicle and
seen that the different problems encountered with the outlets during the survey were sorted
out and seem to it the promotional activities were actually implemented. The problems of
display, credit etc was known during survey. So these problems were solved during the
implementation part.

It was also seen that every outlet survey had a proper display of the company’s product.

In short the product delivery system was learnt.

THERE ARE TWO TYPES OF SOURCES

1) Primary sources

2) Secondary sources
  Primary source:

Primary data can be collected by three methods.

a) Observation

b) Questionnaire

c) Personal Interaction

 Secondary source:

a) Related information from internet

b) Organization report

5.3 DATA COLLECTION METHOD:

a) Retailer Survey

b) Personal Interview

5.4 DATA COLLECTION TECHNIQUES

a) Questionnaire

b) Personal Interview

CHAPTER 6: DATA ANALYSIS

CHAPTER 7: FINDINGS, SUGGESTIONS AND CONCLUSION

7.1 FINDINGS

1. The organization has good working environment provided by the management.

2. Staff and workers were fully involved in their work during shift hours.

3. Canteen facility is good with fresh and hygiene food.

4. Most of the people have positive attitude towards the organization.

5. HCCBPL was maintaining good relation between employee and employer.

6. Management is very much concerned for the workers welfare.

7. They maintain good safety measures to their employees as well as for the workers in the
organization under the welfare program.

7.1.1 MAJOR FINGINGS

“COCA-COLA WORKS ON DIKHEGA TOH BIKEGA” philosophy.

This is the main formula of the marketing strategy of each company . So availability of
product in the market is clear. For this reason market developer daily come in market to
check their product availability.

FOCUS ON VISIBILITY OF COKE PRODUCT IN OUTLET

There is big difference between the availability of products in market and outlets. Coca-
cola want that their product displayed in each outlet in market so it is important that the
product first available in market after than it put on outlets.

FOCUS ON VISIBILITY OF COKE PRODUCT IN OUTLET

The aim of coca-cola is that its product should be visible for the customers so company
gives to retailers racks so many display items. Now days the company is giving vizicoolers
to retailers for visible their chilled product in market for more sales.

AGGRESSIVE ADVERTISEMENT
COCA-COLA use the concept of aggressive advertises for sales promotion. Company
introduces different schemes and advertises them with electronic and print media. These
advertisements build brand image and establishes awareness. Brand ambassador plays an
important role. Brand ambassador encourage the today youth to trust their instincts ,
influence them. Successful advertisement campaigns like “ taaza mango, maaza
mango” and “bottle mein aam, maaza hain naam”. Help lot to make market image
of maaza. Coca-cola advertising campaigns “JO CHAHO HO JAYE” and “LIFE
HO TO AISI” was very popular and had entered in youth vocabulary.

7.2 SUGGESTIONS

The suggestions made in this section are based on the market study conducted as part of
coca-cola. The suggestions are arranged in order of priority , highrst first.

1. Perform a detail demand survey at regular interval to know about the unique needs and
requirements of the customer.

2. The company should make hindrance free arrangement for its customers/ retailers to
make any feedback or suggestions as and when they feel.

3. The company should focus to bring some more flavours like health drinks and other low-
calorie offerings. Coca-cola can also introduce some fruit based drinks, as it has already
entered the energy drink arena with “BURN”.

4. coca-cola’s distribution channel is mostly through retail. Whereas the competitors also
concentrates more on the multiplexes, pubs, and restaurants. Coca-cola should try to
increase their distribution in these areas.

5. The company must keep a watch on its primary competitors in market in order to be
able to compete with them.
6. The company should use new attractive system of word of mouth advertisement to keep
alive the general awareness in the whole market as a whole.

7. The company should be always in a position to receive continuous feedback and

suggestions from its customers/ consumers as well as from the market and try to solve it
without any delay to establish its own good credibility.

8. A strong watch should be kept on distributors so that the goodwill of the brand does not
get affected.

7.1 CONCLUSION
During the course of the project i realized that the customer willingly answered the closed
end questions.

From the analysis of the data collected and from the experiences i have reached the
following conclusions: COKE is most popular amongst its users mainly because of its
TASTE, BRAND NAME, INNOVATIVENESS. Thus it should focus on good taste so that
it can capture the major part of the market. But most of the consumers prefer THUMSUP
as their first preference and then COKE we comes to the conclusion that visibility affects
the sales of project in a very special way and in terms of the advertisements lays is lacking
behind. Mostly consumers remember the advertisements because of the frequency of add
and brand ambassadors, creativity. After acquiring a new customer, there is lot of
importance of its retention also. This can be done only by providing extra flavors and good
taste in today’s scenario , customer is the king because he has got various choices around
him. If you are not capable of providing him the desired result he will definitely switch over
to the other provider. Therefore to survive in thus cutthroat competition, you need to be
best. Customer is no more loyal in today’s scenario, so you need to be always on your toes.
We feel that there is cutthroat competition between COKE, PEPSI, THUMSUP so to be on
top of mind of the customers they need to do something outstanding every time.
 BIBLOGRAPHY

1. WEBSITES:

 www.thecoca-colacompany.com
 www.india-server.com
 www.magindia.com
 www.coca-colaindia.com
 www.wikiinvest.com
 www.open2.net
 www.superbrand.com
 www.wikipedia.org

2. OTHERS:

 Previous projects

3. Distributors

4. Retailers