Pradeep Cokes Final

SHRI RAMSWAROOP MEMORIAL COLLEGE OF
ENGINEERING AND MANAGEMENT, LUCKNOW
SUMMER TRAINING PROJECT REPORT ON
“ANALYSIS OF DISTRIBUTION CHANNELS AND OTHER FACTOR TO INCREASE
SALES ”
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF
DEGREE OF MASTER OF BUSINESS ADMINSTRATION
BY
G.B.T.U UNIVERSITY, LUCKNOW

ACADEMIC YEAR 2009-11
Submitted to: Submitted by:

Prof. Bobby W Layall Pradeep singh
Department of Management Studies Roll. No.-
0912270052
SRMCEM, LUCKNOW. MBA 3rd Semester
PRADEEP SINGH/0912270052/2009-2011
\ SHRI RAMSWAROOP MEMORIAL COLLEGE
OF ENGINEERING AND MANAGEMENT, LUCKNOW
SUMMER TRAINING PROJECT REPORT ON
“ANALYSIS OF DISTRIBUTION CHANNELS AND OTHER FACTOR TO INCREASE
SALES ”
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF
DEGREE OF MASTER OF BUSINESS ADMINSTRATION
BY
G.B.T.U UNIVERSITY, LUCKNOW

ACADEMIC YEAR 2009-11
organisational head UNDER GUIDENCE OF

Mr Nizamudin khan MS SHILPI BAJPAI
[Area sales officer} SRMCEM LUCKNOW
SRMCEM, LUCKNOW. \
SUBMITED BY
PRADEEP SINGH
MBA3th SEM, 0912270052
PRADEEP SINGH/0912270052/2009-2011
PRADEEP SINGH/0912270052/2009-2011
PREFACE
Summer training is an integral part of our academic curriculum. During the training a student
gets an opportunity to understand the practical aspects of theory. Training makes the concept
clearer.
This project report is outcome of the summer training that I have undergone at COCA-COLA
Industries limited for the partial fulfillment of MASTER OF BUSINESS ADMINISTRATION.
The topic allotted to me by the company is “ Analysis of distribution channel and other factors to
increase sales ”.
The project emphasizes on the comparative study of the company. I have tried to my best to
make a good report. However no one can claim perfection in its entirely. So I apologize for the
discrepancy, if any, crept in. Preparation of project requires perseverance, initiatives, proper
guidance and direction. So it’s mandatory to take the aid of various departments. Actually a
project summarized forms of seven activities. They are-
 Planning
 Resource collection
 Organizing
 Joint efforts
PRADEEP SINGH/0912270052/2009-2011
 Efficiency
 Communication
ACKNOWLEDGEMENT
In an organization, be one man working in isolation can achieve it Industry, a school or society,
no outcome. It’s always a group working and achieving the outcome totality
My effort in this work are just a small part, it is the part of all the guidance and support that
received from this organization.
I am thankful to all of the placement department of shri ramswaroop memorial college of
Engineering and management to arrange my training program.
I am also thankful to member of the marketing and sales Department of coca cola industry pvt
lmt for making available all resource required for the completion of this project report.
In the last I would like to thank Mr. Nizamudin, Manager (Marketing and sales). His valuable
guidance and constant encouragement have helped me tremendously in the completion of this
project.
Last but not the least I would like to thank my teachers without whose feedback and
encouragement, this project would not has been possible. There help has gone a long way in
successful completion of my project.
PRADEEP SINGH/0912270052/2009-2011
PRADEEP SINGH/0912270052/2009-2011
DECLARATION
I, Pradeep singh, student of M.B.A. final year of SRMCEM, LUCKNOW Batch-2009-2011,
hereby declare that this dissertation entitled “FINANCIAL RATIO ANALYSIS OF
DISTRIBUTION CHANNEL AND OTHER FACTORS TO INCREASE SALES ” is based
on my original research work and has not been submitted for the award of any other degree,
diploma or fellowship and has not been published in any journal or magazine.
All the persons who helped me during and in the preparation of this report are duly
acknowledged. The results that are published here are purely for academic purpose only.
DATE: PRADEEP SINGH
PLACE:
PRADEEP SINGH/0912270052/2009-2011
INDEX DETAILS
CHAPTERS TO BE COVERED
 INTRODUCTION
 ABOUT COMPANY
 Company profile
 Vision, Mission & Values
 Some recent Milestone
 About Company & Products and Process
 PROFILE OF PLANT/PRIVATE CONCERN/FRANCHISERS
Profile
Process with the layout of processing areas
 INTRODUCTION TO TOPIC
Concept
Objective
Role
Purpose
PRADEEP SINGH/0912270052/2009-2011
 RESEARCH METHODOLOGY
 Research Design
 Data Collection
 Sampling Plan
 ANALYSIS & INTERPRETATION
ABOUT TOPIC
 ANALYSIS of VARIOUS FACTORS FOR SALES
 INTERPRETATION OF MOST IMPORTANT FACTOR
 ANALYSIS OF DISTRIBUTION CHANNEL
 FINDINGS
 CONCLUSION
 LIMITATION
 SUGGESTION
 BIBLIOGRAPHY
INTRODUCTION
PRADEEP SINGH/0912270052/2009-2011
_______________________________________________
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.
PRADEEP SINGH/0912270052/2009-2011
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.
PRADEEP SINGH/0912270052/2009-2011
: 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
PRADEEP SINGH/0912270052/2009-2011
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. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs.(Source: HCCBPL, Monthly Circular, March)
PRADEEP SINGH/0912270052/2009-2011
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
PRADEEP SINGH/0912270052/2009-2011
HISTORY:
Coca-Cola Enterprises, established in 1986, is a young company by
the standards of the Coca-Cola system. Yet each of its franchises
has a strong heritage in the traditions of Coca-Cola that is the
foundation for this Company.
The Coca-Cola bottling system continued to operate as
independent, local businesses until the early 1980s when
franchises began to consolidate. In 1986, The Coca-Cola Company
merged some of its company-owned operations with two large
ownership groups that were for sale, the John T. Lupton franchises
and BCI Holding Corporation's bottling holdings, to form Coca-Cola
Enterprises Inc. The Company offered its stock to the public on
November 21, 1986, at a split-adjusted price of $5.50 a share. On
an annual basis, total unit case sales were 880,000 in 1986.
The Coca-Cola Company traces it’s beginning to 1886, when an
PRADEEP SINGH/0912270052/2009-2011
Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-
Cola syrup for sale in fountain drinks. However the bottling
business began in 1899 when two Chattanooga businessmen
, Benjamin F. Thomas and Joseph B. Whitehead, secured the
exclusive rights to bottle and sell Coca-Cola for most of the United
States from The Coca-Cola Company.
In December 1991, a merger between Coca-Cola Enterprises and
the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a
larger, stronger Company, again helping accelerate bottler
consolidation. As part of the merger, the senior management team
of Johnston assumed responsibility for managing the Company, and
began a dramatic, successful restructuring in 1992.Unit case sales
had climbed to 1.4 billion, and total revenues were $5 billion
PRADEEP SINGH/0912270052/2009-2011
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g
QUALITY
We measure key product and package quality attributes to ensure our beverage products in the
marketplace meet Company requirements and consumer expectations. Consistency and reliability
are critical to our product quality and to meeting global regulatory requirements and Company
standards. The global nature of our business requires that the Coca-Cola system has the highest
standards and processes for ensuring consistent product safety and quality -- from our
concentrate production to our bottling and product delivery.
To ensure such consistency and reliability, the Coca-Cola system is governed by The Coca-Cola
Management System (TCCMS). TCCMS is our integrated quality management program, which
holds all of our operations systemwide to the same standards for production and distribution of
our beverages. It guarantees the highest standards in the management of product quality, the
environment, and health and safety throughout the Coca-Cola system.
TCCMS has endorsement from all leadership throughout the Coca-Cola system. It guides our
product safety and quality by integrating and aligning business and quality objectives with
consistent metrics to monitor performance; integrating preventive action as a management tool,
including more rigorous demands when planning new product and service introductions;
incorporating Hazard Analysis and Critical Control Points (HACCP) into our system standards;
and defining problem-solving methodologies and tools to drive continuous product safety and
quality improvements.
PRADEEP SINGH/0912270052/2009-2011
To stay current with new regulations, industry best practices and marketplace
conditions, we consistently reassess the relevance of our product safety and quality guidelines in
TCCMS. Given the increased awareness of the importance of food safety, not only in
manufacturing but also throughout the entire supply chain, we are refining our requirements to
further ensure that TCCMS embodies the most recent and stringent manufacturing processes.
Each business within the Coca-Cola system must establish, implement, document and maintain a
safety and quality system in accordance with TCCMS requirements.
In 2007 and 2008, our Company's Global Product Quality Index rating was 94.5, our highest-
ever value. Our 2008 Company Global Package Quality Index rating increased to 91.2 from 90.4
in 2007, also reaching our highest-ever value.
Ingredients
Variety is the foundation of our commitments to our consumers. With our range of beverage
products, package sizes and nutrition information provided on our packages, we strive to inform,
motivate and empower consumers to make sensible beverage choices. Our goal is to help people
around the world lead healthier lives by providing beverages for every lifestyle, life stage and
life occasion. Read our "Advertising and Marketing to Children Policy."
We have over 500 beverage brands inclusive of more than 3,300 beverages. They range from
full-, reduced-, low- and no-calorie sparkling beverages to still beverages such as 100 percent
fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk- and
soy-based beverages. All of these beverages are made of high-quality ingredients and can be part
of a healthy, balanced diet.
PRADEEP SINGH/0912270052/2009-2011
In 2009, the Company launched more than 600 new beverage products globally,
including more than 180 low- and no-calorie options for consumers. The launch of these low-
and no-calorie options expanded our portfolio of that category by approximately 25 percent from
2008 to 2009. To date, we have more than 800 low- and no-calorie beverage products,
accounting for approximately 25 percent of our 2009 unit case volume. Coca-Cola Zero, now
available in more than 100 countries, has been an important addition to these no-calorie beverage
alternatives.
As an additional way to help consumers manage calories, we continue to introduce smaller
packaging sizes in markets throughout the world. In the United States, we introduced the 8-
ounce, 100-calorie aluminum cans of Coca-Cola, Cherry Coke and Sprite in 2007. We also
began introducing our new "Coca-Cola mini can" at the end of 2009, offering consumers a 7.5-
ounce, 90-calorie serving of Coca-Cola.
Understanding the growing consumer need for products that deliver enhanced beverage benefits,
we offer functional beverages that can help consumers address nutrition gaps and performance
needs. For example, NutriJuice, a vitamin- and mineral-fortified orange juice drink specifically
developed to help address the problem of iron-deficiency anemia and malnutrition in children,
was launched in the Philippines in 2007. To date, approximately 36,000 children have benefited
from consuming this free product which is provided to elementary school children during the
school year. In 2008, we introduced Powerade Zero -- a calorie-free beverage with electrolytes
and B vitamins -- which offers consumers health benefits and hydration in a no-calorie option.
Other fortified products are Nurisha, ViMngo and Nuricier.
PRADEEP SINGH/0912270052/2009-2011
The Beverage Institute for Health & Wellness
The Coca-Cola Company's Beverage Institute For Health & Wellness, formed in 2004, is part of
our ongoing commitment to using health and nutrition science to advance the role that beverages
can play in health and well-being. The Institute and our team of medical and nutrition scientists
are responsible for the Company’s clinical research programs and serve as a valuable resource
for internal and external parties interested in the science of beverages and their benefits and role
in active, healthy living.
The Institute fosters:
 Understanding of health and nutrition issues facing consumers and the opportunities
related to these issues.
 Science and research by advancing existing and emerging nutrition and health science
with application to beverages.
 Education so that consumers better understand the basics of nutrition, the role of
beverages in nutrition and the necessary balance between diet and physical activity.
 Communication and sharing information to advance knowledge of the science of
beverages.
 Community and stakeholder outreach through participation in programs that leverage all
of our learnings in the communities we serve
PRADEEP SINGH/0912270052/2009-2011
PRADEEP SINGH/0912270052/2009-2011
MANIFESTO FOR GROWTH
VALUES:
Coca-Cola is guided by shared values that both the employees as individuals
and the Company will live by; the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
PRADEEP SINGH/0912270052/2009-2011
INTEGRITY: Be real
ACCOUNTABILITY: If it is to be, it’s up to me
COLLABORATION: Leverage collective genius
INNOVATION: Seek, imagine, create, delight
QUALITY: What we do, we do well and actions
• To Create Value and Make a Difference... Everywhere we engage.
: VISION FOR SUSTAINABLE GROWTH
• PROFIT: Maximizing return to shareowners while being mindful of our
overall responsibilities.
• PEOPLE: Being a great place to work where people are inspired to be
the best they can be.
• PORTFOLIO: Bringing to the world a portfolio of beverage brands
that anticipate and satisfy peoples’ Desires and needs.
PARTNERS: Nurturing a winning network of partners and building
mutual loyalty.
MISSION
To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands
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Mission statement is to maximize shareowner over time.
In order to achieve this mission, company must create value for all the
constraints we serve, including our consumers, our customers, our bottlers,
and our communities. The Coca Cola Company creates value by executing
comprehensive business strategy guided by six key beliefs:
Consumer demand drives everything we do Brand Coca Cola is the core of our business
We will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink through out the day.
We will be the best marketers in the world.
We will think and act locally.
We will lead as a model corporate citizen.
STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked
which resulted in making Coca Cola Company the world’s leading
company. In 2001, company accomplished the crust of it’s strategy as
Worldwide volume increased by 4 percent with strong international growth
of percent and clear signs that our North American business is growing
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solidly and predictable.
Earnings per share grew by 82 percent, as we delivered on our commitment
create volume growth while aggressive Return on common equity grew from 23 percent in 2000
to 38 percent thisyear.Return on capital increased from 16 percent in 2000 to 27 percent in
2001.The company has generated free cash flow of $3.1 billion, up from $2.8
billion in2000, a clear indication of its underlying financial strength.
The strategy for the future of the company is very straightforward. The
marketing strategy for the year 2002 is as follows, Accelerate carbonated soft-drink growth, led
by Coca-Cola.Selectively broaden the family of beverage brands to drive profitable growth.
Grow system profitability and capability together with our bottling partners.
Serve customers with creativity and consistency to generate growth across all channels.
• Direct investments to highest potential areas across markets.
• Drive efficiency and cost-effectiveness everywhere.
MAJOR COMPETOITR
PEPSI INTERNATIONAL
HISTORY
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PepsiCo is a world leader in convenient foods and beverages, with
revenues of about $27 billion and over 143,000 employees. The company
consists of the snack businesses of Frito-Lay North America and Frito-Lay
International; the beverage businesses of Pepsi- Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International
; and Quaker Foods North America, manufacturer and marketer of ready-
to-eat cereals and other food products. PepsiCo brands are available in
nearly 200 countries and territories.
Many of PepsiCo's brand names are over 100-years-old, but the
corporation is relatively young. PepsiCo was founded in 1965 through the
merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and
PepsiCo merged with The Quaker Oats Company, including Gatorade, in
2001.would entertain the listener with the latest musical selections
rendered by violin or piano or both. The new name, “Pepsi Cola”, is derived
from the two of the principle ingredients, Pepsin and Kola Nuts. It was first
used on the August 28. At that time, Bradham’s advertising praises his
drink as “Exhilarating, invigorating, aids digestion”.
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1990-2002
The advertisement of the Pepsi changes to, “You got the right one baby,
Uh-Huh!”.With the extensive usage of the stars in the adds, the popularity
of Pepsi increase. In 1992 Pepsi- Cola formed a partnership with Thomas
J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in
the United States. Outside the United States, Pepsi-Cola Company's soft
drink operations include the business of Seven-Up International. Pepsi-
Cola beverages are available in more than 190 countries and territories.
In Asia, they selected Lahore to make their regional office. This was done
in 1970. This regional office is monitoring all the operations carried out in
South West Asia. As in Pakistan, they only entered beverage industry.
They have eleven bottlers covering whole Pakistan. The plant operating
here is Riaz Bottlers (Pvt) LTD. This plant was established at Lahore in
1974. The total capacity of the plant is 30,000 cases per day. They have
four filling lines in the plant operating on the three shift bases. Each shift is
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of eight hours. They have permanent work force of 750 people and they
employee approximately 1000 people more on temporary basis during
summer season.
Pepsi’s Products
• Pepsi
• Teem
• Mirinda
• Pepsi Max
• Pepsi Lemon
• Pepsi Blue
• Mountain Dew
PepsiCo: The PepsiCo challenge, to keep up with archrival, the
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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
FACTORS EFFECTING SALES
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There are so many factors, which affects the sale of coke. Here we are
discussing
three major factors which effects coke.
• Per capita income
• Competitors
• Weather
Per Capita Income
First we will discuss about “ Per capita income”. This is major factor that
affects the sale of this soft drink. Because which every passing year
budgets are becoming very strict and tight in order to purchase things. So
the disposable incomes of the people are coming down. They spend
heavily on rents, utilities, and education and basic necessities and after that
when they get extra money they think about this soft drink .So the
decreasing per capita income effects badly in selling and production of this
soft drink. And to get through with this difficulty there is need to increase the
level of per capita income of Pakistan because it is much lesser than the rest of the countries.
Competitors
Coke’s major competitor is “PEPSI” and there is no hesitation to say this because
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every one knows that and all the other cold drinks and water, coffee, tea are the
competitors.
Weather
weather is the third major factor in effecting the Coke’s selling. This is
underdeveloped market so the coke’s consumption in summers is 60% and in winters is 40%.
MAJOR CUSTOMERS NEED
First of all the majority don’t care that what they are going to have. In other words,
they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t
actually Differentiate between these two brands in order to their tastes
.Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.
For this reason Coca-Cola have provided their coolers and freezers in the
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market. They have maximum number of coolers and freezers in the market.
They provide this infrastructure free of cost just to provide child coke to
their customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has
its infrastructure to check that either it is in proper condition or not, if not
then they immediately change or repair it.
THREATS AND OPPORTUNITIES FOR PRICE
Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
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After paying all these taxes coke has to pay electricity charges. We have to
spend on distributions. After paying all these expenses Coke’s margin
squeezed and consumers have to pay for increasing tariffs.
These are the opportunities through which we can increase the price and can get profits.
Threats
There are much more threats in increasing prices. Because same problem
of substitute. If Coke increase the price lets say 1 rupee. Then people
definitely won’t go for coke. They have the best substitute of Coke that is
Pepsi. So these are the threats in increasing prices. Coke will lose the
margin of its profit and can face loss.
TARGETS THAT WOULD LIKE TO ATTAIN
Every organization runs on the bases of profit maximization so Coke is also
looking for a high profit margin
STRATEGIES OF GETTING GOALS
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To increase the price is the least thing, which Coke can adopt. There are so
many
ways through which Coke can increase the profits. Some major ways are as
follows.
• Volume can be increased
• Interest level of consumers
• To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of coke. Through
advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in “Fanta”, this is one
of the product of coke. Through offering different flavors Coke can
increase the Level of consumers and through this profits can be gained.
How to take part in energetic festivals?
Coke is already taking part in the festival like “Basant” since last 3 years.
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Coke offers different attractive things in their festival and through this Coke
gained high profit and consumption of coke increased on these occasions.
And this year in this year 2002 people were anxiously waiting that what interesting thing coke is
going to offer.
MARKETING STRATEGY
Our local marketing strategy enables Coke to listen to all the voices around
the world asking for beverages that span the entire spectrum of tastes and
occasions. What people want in a beverage is a reflection of who 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
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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 around the world,
and we never forget it.
Coca-Cola reports 22% jump in India sales
The Indian arm of the Coca-Cola corporation registered a
22% growth in sales during the second quarter of the current calendar year,
the company reported Wednesday.
"During the second quarter of 2010, we continued to achieve solid business
results. This was our 16th consecutive quarter of growth," said Atul Singh,
chief executive and president for India and South Asia.
"Coca-Cola India's unit case volume grew by 22% during the quarter. We
are seeing strong growth across our portfolio both in sparkling and in
stills," he said in a statement.
"Going forward, we plan to continue our investments in our system to build
the health of our brands fuelled by world-class marketing and innovation."
Globally the maker of soft drinks like Fanta, Sprite and Diet Coke said its
net income grew to $2.37 billion in the second quarter which ended on July
2 from $2.04 billion in the same quarter last year.
Coca-Cola India’s growth story continued in the second quarter of this
calendar year. Its unit case volume grew by 22 per cent in the quarter
(April-June), the 16th continuous quarter of such growth, of which 13
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quarters have had double-digit growth.
its result announcement yesterday, rival Pepsi also stated it had registered
double-digit growth volume in India.
Coca-Cola India’s volume growth is in sharp contrast to its growth
worldwide. Worldwide, the beverage giant registered a volume growth of
just five per cent in the reported quarter. The company’s net revenue grew
by five per cent for the same period.
Atul Singh, President and CEO, Coca-Cola India and South West Asia,
said: “We are seeing strong growth across our portfolio, both in sparkling
and in stills. Brand Coca-Cola, too, registered strong growth during the
same quarter. We plan to continue our investments to build the health of
our brands, fuelled by world-class marketing and innovation.”
The strong Indian growth is a result of the company’s continuous
investment in sales and distribution channels. It has also added more
number to its retail outlets. New launches also contributed to the
impressive growth. In the recent past, the company launched Nimbu Fresh
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and an energy drink, Burn.
Strong brand growth for Coca-Cola has come from a diversity of markets,
including Brazil, Mexico, the Philippines, Turkey, Thailand, Russia, India
and the United States.
old coca cola adds-
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I really love many of the old ads I’ve seen for Coca-Cola. In this post are
just two examples of my favorites.
The ad above is from the September 1908 issue of Good Housekeeping. I
just love the illustration of the group of friends at the soda fountain! It looks
like they are having such a good time, and these are the types of scenes
that make me wish I could go back in time and experience it. The ad claims
that Coca-Cola is “liked by and good for all classes, ages, and sexes.”
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The beautiful ad here is from the June 1906 issue of The Burr
McIntosh Monthly. I think the illustration is gorgeous, but the text
is also very interesting here. It is a great example of how the
language in ads has changed. This ad states that Coca-Cola “is a
most refreshing relief from fatigue and excitement - a
grateful invigorant without reactionary lassitude…”. It also
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tells us that Coke was available at both soda fountains and also
carbonated in bottles.
There are many other great ads for Coca-Cola and I am sure I
will feature more of them in the future.
Share of stomach
If you think of convenience channel beverage sales as one big stomach –
full to the gunnels with soft drinks, flavoured milks, fruit juices, energy
drinks sports drinks and waters – cola makes up 24% of the volume and
28% of the dollars. This is quite a bit lower than only three years ago (32% of the dollars).
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Cola sales are still growing (3% by volume), but sales of other drinks such as
energy drinks, juice and water are growing much faster. In particular, energy drinks have
increased their share of stomach from 12% to 15% with sales growth over 30%
MARKET SHARE OF DIFFERENT UNITS OF COCA COLA
COLA UNITS % COLA SALES
Coca-Cola 600 ML PET 24%

Coca-Cola 1.25 L PET 12%
Coca-Cola 2 L PET 11%
Coca-Cola 390 ML PET 7%
Coca-Cola 375 ML CAN 7%
Diet Coke 600 ML PET 7%
Pepsi Max Diet 600 ML PET 3%
Diet Coke 1.25 L PET 3%
Diet Coke 390 ML PET 2%
Vanilla Coke 800 ML PET 2%
Diet Coke 2 L PET 2%
Coca-Cola continues to dominate the cola market in convenience,
particularly sugar cola.
Pepsi Max accounts for over 20% of the non-sugar cola segment which is
the fastest growing. The growing popularity of non-sugar cola is in
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keeping with the overall trend towards healthier, as well as more
functional, beverages. These trends need to be reflected in fridge space
allocation between non-sugar and sugar colas.“Non-sugar cola volumes
are growing 12.5%,” says Mark Smith, Managing Director, Cadbury
Schweppes.
“Pepsi Max and Pepsi Light are driving the segment with double-digit growth.
“When consumers are asked to identify a cola with no sugar, 46% recall
Pepsi Max, according to the Millward Brown Tracking data.”
The biggest shift in the soft drink category – from sugar to sugar-free –
reflects the changing demographic.
“Diet Coke appeals to the over thirties,” says Kate Wilson. “The increase
in interest in health, wellness
and life stages is partly driving growth in diet Coke, but also accounts for
the appeal of other beverages such as water.”
Demographic change also means that cola needs to extend its appeal to
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the over forties who do not want to be treated as old but do want products to
suit their life stages.
“The brands that do well are emotionally appealing and functionally relevant to people,” adds
Kate Wilson.
Summer promotions
The major campaigns to stimulate sales this summer are underway.
Coke Live 05, which began rolling out on 1 May, builds on the successful
Coca-Cola Live ’n Local Tour in 2004. This year, there will be five months
of music giveaways, an extensive online music hub, music
rewards, access to live gigs for under 18s and a major concert tour
featuring Australian bands.
Last year, the campaign attracted more than 45,000 music fans to
concerts, over 50,000 prizes were given away and entries were received
from unsigned bands all around Australia. In 2005, the program
will offer consumers more chances to get involved.
“These promotions are very popular with teenagers who do not often
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have the chance to experience live music because bands usually play in
licensed venues,” says Kate Wilson.
Marketing support includes TV commercials, cinema and street press
, radio advertising and point of sale material.
The theme for Coke and Lime promotions is ‘out and about’, with a
strong emphasis on mobile technology, including featuring in the video-
streamed soap opera, Random Place, and in outdoor advertising – the
hypertag. There are eight outdoor locations around the Sydney CBD
where you can download sounds (such as a bottle opening) and music to
a mobile phone.“Coca-Cola is one of the first companies to take
advantage of this new technology,” says Kate Wilson.
“We are keeping consumers engaged with the brand in new and different
ways to maintain interest.
“Everything we do has an experiential element. We are learning a lot
from the online component of Coke Live 05 which drew together a
community of 200,000 people. Consumers want to connect to like-
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minded people.”
This led to the creation of the AFL website which has 250,000 registered users.
“The appeal is that you can win something for your team,” adds Kate
Wilson. “We will be building more networks in 2006 because the market is
online and mobile.”
Pepsi and Pepsi Max have strong summer support programs for 2005-06,
with total brand investment of $7 million.
“The summer programs for cola brands build brand preference in the key
selling period of the year,” says Mark Smith. “Pepsi’s programs respond to
consumer insights with a ‘life-changing’ promotion and the theme ‘dare
to be different’.”
In the ‘Be Heaps Rich” promotion, one lucky Pepsi Max consumer will win a prize pack valued
at $350,000, including an Audi TT and over $100,000 in Qantas international
flights.
Supporting the Pepsi brand, the ‘Dare for More’ campaign adds three
fresh young faces – pop star Tammin Sursok, actress Holly Brisley, and
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rugby league star Sonny Bill Williams – to billboards across Australia in the
Pepsi LARGE format.
“The “Dare For More” campaign leverages brand personality and Pepsi’s
fun attitude while retaining similar cues from the previous campaign and
the familiar Pepsi look,” says Mark Smith.
Cola producers put a lot of creativity, effort and money into these
campaigns, and you can share in the rewards by matching your in-store
(or should we say, in-fridge?) execution with point of sale and
product positioning.
Just for the taste of it Market share of Coke Classic and Pepsi-
Cola have both withered over the past several years, with Coke
losing about 9 percent and Pepsi shedding about 12 percent since
2000, according to Beverage Digest.
However, Coca-Cola does have a strong heavyweight in its
portfolio: Diet Coke. In fact, it is the only one of the top six
selling soft-drinks to gain market share over the past four years.
Still, now that Coke has latched onto the low-carb craze,investors
have to be wondering if Coke is messing with a good thing. Will
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the new C2 eat into Diet Coke sales?
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Type Public (NYSE: KO)
Dow Jones Industrial
Averagecomponent
Industry Beverage
Founded 1892
Headquarters Atlanta, Georgia, United States
Area served Worldwide
Key people Muhtar Kent
(Chairman and CEO)[1]
Products Coca-Cola
Carbonated Soft Drinks
Water
Other Non-alcoholic beverages
[2]
Revenue ▲ US$31.0 Billion (FY 2009)[3]
Operating ▲ US$8.23 Billion (FY 2009)[3]
income
Net income ▲ US$5.82 Billion (FY 2009)[3]
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Total assets ▲ US$48.7 Billion (FY 2009)[4]
Total equity ▲ US$24.8 Billion (FY 2009)[4]
Employees 92,800 (July 2010)
Website Official Website
Things go better with Pepsi? In the soft-drink market, the Atlanta-based company has held the
top spot for years, with Pepsi second, as Coke flexed its marketing muscle and spread its iconic
brand around the world.
The two companies have been engaged in their cola wars for decades, often launching similar
products within months of each other.
But the similarity ends there. Coke shares have remained flat this year while Pepsi's stock has
climbed 15 percent year-to-date on the continued strength of its Frito-Lay snack food business.
MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes:
• Coke.
• Sprite.
• Fanta.
• Diet Coke.
And company offers their products in different bottle sizes these includes:
• SSRB
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(standers size returnable bottle)
• LRB
(litter returnable bottle)
• NRB
(no return bottle) or disposable bottle
• PET 1.5
(1.5 litter plastic bottle)
• CANS
(tin pack 330 ml)
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Packing
Coca cola products are available in different packing
• 24 regular bottle shell
• 6 bottle pack for 1.5 pets
• 12 bottles in a pack for disposable bottle
• 24 cans in one pack
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MANUFACTURING PROCESS
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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.
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AUDIT PROCEDURE
Audit Committee Charter
Purpose
The Committee will represent and assist the Board in fulfilling its oversight responsibility to the
shareowners and others relating to the integrity of the Company's financial statements and the
financial reporting process, the systems of internal accounting and financial controls, the internal
audit function, the annual independent audit of the Company's financial statements, the
Company's compliance with legal and regulatory requirements, and its ethics programs as
established by management and the Board, including the Company's Code of Business Conduct.
The Committee shall also oversee the independent auditors' qualifications and independence. The
Committee will evaluate the performance of the Company's internal audit function
(responsibilities, budget and staffing) and the Company's independent auditors, including a
review and evaluation of the engagement partner and coordinating partner. In so doing, it is the
responsibility of the Committee to maintain free and open communication between the
Committee, independent auditors, the internal auditors and management of the Company. The
Committee is also responsible for producing an annual report for inclusion in the Company's
proxy statement.
Committee Membership
The Committee shall be appointed by the Board and shall comprise at least three directors. Each
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Committee member shall meet the requirements of the New York Stock
Exchange listing standards, and federal laws and regulations, with respect to audit committees, as
they may become applicable from time to time, as well as the requirements of the Company's
Corporate Governance Guidelines. No member may serve on the audit committees of more than
three public companies, unless the Board of Directors shall have affirmatively determined that
the Director will be able to devote sufficient time and attention to the business of the Committee.
Committee members may have no direct or indirect financial relationship whatsoever with the
Company other than the receipt of director's fees. All Committee members will be financially
literate, and at least one member of the Committee will meet the definition of "audit committee
financial expert" set forth in the rules and regulations of the Securities and Exchange
Commission (SEC). The Board will designate a Chairman for the Committee. The Committee
may form and delegate authority to subcommittees when appropriate.
Committee Authority and Responsibilities
The primary responsibility of the Committee is to oversee the Company's financial controls and
reporting processes on behalf of the Board and report the results of its activities to the Board.
Management is responsible for preparing the Company's financial statements, and the
independent auditors are responsible for auditing those financial statements. The Committee in
carrying out its responsibilities believes its policies and procedures should remain flexible, in
order to best react to changing conditions and circumstances. The Committee should take the
appropriate actions to set the overall corporate "tone" for quality financial reporting, sound
business risk practices, and ethical behavior.
The following shall be the principal recurring processes of the Committee in carrying out its
oversight responsibilities. The Committee may perform such other duties and responsibilities as
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are consistent with its purpose and as the Board or the Committee deems
appropriate.
1. Independent Auditors. The Committee shall have a clear understanding with management and
the independent auditors that the independent auditors are ultimately accountable to the
Committee and the Board, as representatives of the Company's shareowners. The Committee
shall have the sole authority and responsibility to hire, evaluate and, where appropriate, replace
the independent auditors and, in its capacity as a committee of the Board, shall be directly
responsible for the appointment, compensation and general oversight of the work of the
independent auditors. The Committee shall discuss the auditors' qualifications and independence
from management and the Company, including whether the auditors' performance of permissible
non-audit services is compatible with their independence. This process will include, at least
annually, the Committee's receipt of a report by the independent auditors' describing their
internal control procedures, any material issues raised by the most recent internal quality-control
review, or inspections by the Public Company Accounting Oversight Board (PCAOB), of the
independent auditors, or by any inquiry or investigation by governmental or professional
authorities, within the preceding five years, respecting one or more independent audits carried
out by the independent auditors, and any steps taken to deal with any such issues; and (to assess
the auditors' independence) a report on all relationships between the independent auditors and the
Company, or persons in a financial reporting oversight role at the Company, that may reasonably
be thought to bear on independence. Annually, the Committee will review the qualifications and
performance of the Company's current independent auditors, and select the Company's
independent auditors for the next year, subject to shareowner ratification.
2. Audit Services. The Committee shall discuss with the internal auditors and the independent
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auditors the overall scope and plans for their respective audits including their
respective responsibilities and the adequacy of staffing and compensation. The Committee shall
approve in advance all audit engagement fees and the terms of all audit services to be provided
by the independent auditors.
3. Permissible Non-audit Services; Pre-Approval Policy. The Committee shall approve in
advance all permissible non-audit services to be provided by the independent auditors. The
Committee shall establish policies and procedures for the engagement of the independent
auditors to provide permissible audit and non-audit services. The Committee will consider and, if
appropriate, give advance approvals to specified classes of non-audit services in accordance with
policies adopted by the Committee. No non-audit services shall be provided by the independent
auditors, except as approved in advance by the Committee.
4. Review of Interim Financial Statements and Earnings Releases. The Committee shall meet and
review the interim financial statements, and the Company's disclosures under Management's
Discussion and Analysis of Financial Condition and Results of Operations, with management
and the independent auditors prior to the filing of each of the Company's Quarterly Reports on
Form 1O-Q. The Committee will discuss the Company's policies and procedures with respect to
earnings releases and review financial information included in releases and earnings guidance
provided to analysts and rating agencies. The Committee will discuss the results of the quarterly
review and any other matters required to be communicated to the Committee by the independent
auditors under auditing standards established from time to time by the PCAOB and by SEC
rules.
5. Review of Annual Audited Financial Statements. The Committee shall meet and review with
management and the independent auditors the financial statements to be included in the
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Company's Annual Report on Form 10-K (or the annual report to shareowners
if distributed prior to the filing of the Form 10-K), including (a) their judgment about the quality,
not just acceptability, of the Company's accounting principles, including significant financial
reporting issues and judgments made in connection with the preparation of the financial
statements; (b) the clarity of the disclosures in the financial statements; and (c) the Company's
disclosures under Management's Discussion and Analysis of Financial Condition and Results of
Operations, including critical accounting policies.
The Committee will also review with management and the independent auditors (a) major issues
regarding accounting principles and financial statement presentations, including significant
changes in the selection or application of accounting principles; (b) major issues regarding the
adequacy of internal controls and steps taken in light of material deficiencies; and, (c) the effects
of regulatory and accounting initiatives on the financial statements.
The Committee will discuss: (a) the results of the annual audit; (b) any difficulties the
independent auditors encountered in the course of their audit work, including any restrictions on
the scope of the auditors' activities or on access to requested information, and any significant
disagreements with management; and (c) management's response to any difficulties encountered
in the course of the auditors' audit work. The Committee will also discuss any other matters
required to be communicated to the Committee by the independent auditors under auditing
standards established from time to time by the PCAOB and by SEC rules. , and the annual report
on internal controls by the Chief Executive Officer and Chief Financial Officer, as reviewed by
the independent auditors.
Based on these reviews, the Committee will make a recommendation to the Board as to whether
the audited financial statements should be included in the Company's Annual Report on Form
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10-K.
6. Risk Assessment and Risk Management. The Committee will review and
discuss with management, the internal auditors, and the independent auditors the Company's
policies and procedures with respect to risk assessment and risk management.
7. Internal Controls, Disclosure Controls and Procedures. The Committee will discuss with
management, the internal auditors, and the independent auditors the Company's internal controls
(with particular emphasis on the scope and performance of the internal audit function), and
review and discuss with the internal auditors the results of the internal audit program. The
Committee will review and discuss the Company's disclosure controls and procedures, and the
quarterly assessments of such controls and procedures by the Chief Executive Officer and Chief
Financial Officer. The Committee shall consider issues involving related person transactions
with the Chairman of the Board (if he is an employee of the Company) or the Chief Executive
Officer or any holder of 5% or more of the Company's common stock. The Committee shall have
the authority to consider for approval any such related person transactions and if possible
approve such transactions before they are entered into.
8. Complaint Procedures. The Committee shall establish and oversee procedures for handling
complaints regarding accounting, internal accounting controls, and auditing matters, including
procedures for confidential, anonymous submission of concerns by employees regarding
accounting and auditing matters.
9. Compliance Programs. The Committee shall periodically review and discuss with
management, the internal auditors, and the independent auditors the overall adequacy and
effectiveness of the Company's legal, regulatory and ethical compliance programs, including the
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Company's Code of Business Conduct.
10. Report for Inclusion in Proxy Statement. The Committee shall prepare the
report that SEC rules require to be included in the Company's annual proxy statement.
11. Hiring of Auditor Personnel. The Committee shall set hiring policies with regard to
employees and former employees of the independent auditors.
12. Charter. The Committee shall annually review and reassess the adequacy of this Charter and
recommend any proposed changes to the Board for approval.
13. Annual Performance Evaluation. The Committee shall annually review its own performance.
14. Investigative Authority. In discharging its oversight role, the Committee is empowered to
investigate any matter brought to its attention with full access to all books, records, facilities and
personnel of the Company.
Outside Advisors
The Committee shall have the authority to retain such outside counsel, accountants, experts and
other advisors as it deems appropriate to assist the Committee in the performance of its
functions. The Committee shall be provided with appropriate funding, as determined by the
Committee, for payment of compensation to such outside counsel, accountants, experts and other
advisors.
Meetings
The Committee will meet as often as may be deemed necessary or appropriate in its judgment, at
least quarterly each year, and at such times and places as the Committee shall determine. The
majority of the members of the Committee shall constitute a quorum. The Committee will meet
separately, at least quarterly, with the internal auditors, the independent auditors, the general
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counsel and other senior management to discuss any matters that they wish to
bring to the Committee's attention or that the Committee wishes to bring to their attention.
The Committee shall report to the Board with respect to its meetings, including any significant
issues that arise with respect to the quality or integrity of the Company's financial statements, the
Company's compliance with legal or regulatory requirements, the performance and independence
of the Company's independent auditors, or the performance of the internal audit function.
Development, training & benefits
The work here at Coca-Cola is demanding. We all enjoy the challenge of contributing to the
growth of the business
but it can be tough. You need to be firing on all cylinders and giving your very best.
To help each of our employees do just that, we have an impressive range of benefits,
development initiatives and
training programmes around.Benefits at Coca-Cola are as varied as the drinks we make. Some
will put a spring in
your step; others will provide you with a feeling of calm; others still will be good for your health,
now and in the future
. The exact package depends on your position and geographical location, but underlying all our
benefits, however, is the fact that they are tailored to your needs and competitive among peer
organisations.
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Our training and development programs are equally impressive.
We have an extensive on the job training program to focus on the day-to-day
needs of our people and in each of our offices across the continent there are a number of local
training initiatives catering to particular regional needs.
In addition, The Coca-Cola University (CCU) provides excellent learning opportunities to help
you develop both personally and in business. You can take advantage of a variety of flexible,
tailored and diverse resources including:
 Instructor led training classes in a range of areas including People Leadership, Franchise
Leadership, Consumer Marketing and Customer/Commercial Leadership;
 E-learning to share core knowledge;
 Workshops to help generate new ideas and apply them practically;
 Just-in-time training and development for critical skills;
 An extensive online library of books and other resources to support on the job learning
 External speakers reviewing the latest thinking on hot topics.
ORGANISATION RESOURSE At Coca Cola
Coca Cola is one of the leading beverage companies of the industry. It runs its business
campaigns all across the world. It deals with different types of products such as soft drinks,
bottled water, tea, sport juices, etc. Coca-Cola has a franchising model for the production and
distribution purposes. Only the syrup concentrate are manufactured by the company which is
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sold to the bottlers who are its franchisers (Coca-Cola Bottling, 2008).
It is important on the part of management to organize the activities of human resources and
organizing technology along with other resources such as physical assets, monetary resources
and knowledge of the employees and to establish effective and efficient internal organizational
structure of the business. The organizing function focuses on division, coordination, and control
of tasks and flow of information within the organization. Moreover, managers distribute
responsibility and authority to job holders
Human Resource Management
Human Resource Management is an essential part for any organization. Moreover, development
of this department is the first step, the ground on which the future of the company depends. It is
essential for every single business unit and especially for such international company as Coca
Cola. It is people, not technology who create the company. Human Resource Management at
Coca Cola Company has many advantages as well as disadvantage. It is the global company and
it is impossible to create certain policies or procedures applicable in all divisions of the company,
cultural and political differences need to be taken into account.
Human Resource Management- is used to describe the function that is concerned with people-the
employees. Human resource management is the function performed in organizations that
facilitates the most effective use of people (employees) to achieve organizational and individual
goals.
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Human Resource Management consists of numerous activities including:
• Equal employment opportunity (EEO) compliance
INTRODUCTION TO THE TOPIC
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:
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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 well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.
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
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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.
DISTRIBUTIONS In today’s market situation, consumer has various options and choice. He
can choose the best options available in the market, which gives them better service for the long
time. So, in order to fulfill all the needs and demands of the consumer, the manufacturing
companies should concentrate on the distribution channel and should make an effective and
efficient distribution network
Product distribution (or place) is one of the four elements of the marketing mix. An organization
or set of organizations (go-betweens) involved in the process of making a product or service
available for use or consumption by a consumer or business user.
The other three parts of the marketing mix are product, pricing, and promotion.
The distribution channel
It is defined as a chain of intermediaries, each passing the product down the chain to the next
organization, before it finally reaches the consumer or end-user. This process is known as the
'distribution chain' or the 'channel.' Each of the elements in these chains will have their own
specific needs, which the producer must take into account, along with those of the all-important
end-user.
Channels
A number of alternate 'channels' of distribution may be available:
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 Distributor, who sells to retailers,
 Retailer (also called dealer or reseller), who sells to end customers
 Advertisement typically used for consumption goods
Distribution channels may not be restricted to physical products alone. They may be just as
important for moving a service from producer to consumer in certain sectors, since both direct
and indirect channels may be used. Hotels, for example, may sell their services (typically rooms)
directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation
systems, etc.
If we mention in a single sentence the distribution channel is nothing but it is a process of
transfer the products or services from Producer to Customer or end user.
There have also been some innovations in the distribution of services. For example, there has
been an increase in franchising and in rental services - the latter offering anything from
televisions through tools. There has also been some evidence of service integration, with services
linking together, particularly in the travel and tourism sectors. For example, links now exist
between airlines, hotels and car rental services. In addition, there has been a significant increase
in retail outlets for the service sector. Outlets such as estate agencies and building society offices
are crowding out traditional grocers from major shopping areas.
Channel decisions
 Channel strategy
 Gravity & Gravity
 Push and Pull strategy
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 Product (or service)
 Cost
 Consumer location
Managerial concerns
The channel decision is very important. In theory at least, there is a form of trade-off: the cost of
using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer
goods manufacturers could never justify the cost of selling direct to their consumers, except by
mail order. Many suppliers seem to assume that once their product has been sold into the
channel, into the beginning of the distribution chain, their job is finished. Yet that distribution
chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations
to be market-oriented, their job should really be extended to managing all the processes involved
in that chain, until the product or service arrives with the end-user. This may involve a number of
decisions on the part of the supplier:
 Channel membership
 Channel motivation
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 Monitoring and managing channels
Type of marketing channel
1. Intensive distribution - Where the majority of resellers stock the 'product' (with
convenience products, for example, and particularly the brand leaders in consumer goods
markets) price competition may be evident.
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2. Selective distribution - This is the normal pattern (in both consumer and
industrial markets) where 'suitable' resellers stock the product.
3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically
only one per geographical area) are allowed to sell the 'product'.
Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales and service
support. Motivating the owners and employees of the independent organizations in a distribution
chain requires even greater effort. There are many devices for achieving such motivation.
Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in
the channel to push the product rather than its competitors; or a compensation is offered to the
distributors' sales personnel, so that they are tempted to push the product. Dent defines this
incentive as a Channel Value Proposition or business case, with which the supplier sells the
channel member on the commercial merits of doing business together. He describes this as
selling business models not products.
Monitoring and managing channels
In much the same way that the organization's own sales and distribution activities
need to be monitored and managed, so will those of the distribution chain.
In practice, many organizations use a mix of different channels; in particular, they may
complement a direct salesforce, calling on the larger accounts, with agents, covering the smaller
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customers and prospects. These channels show marketing strategies of an
organisation. Effective management of distribution channel requires making and implementing
decision in these areas
IN RURAL AREAS
IN URBAN AREAS
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Distribution channels move products and services from businesses to consumers and to other
businesses. Also known as marketing channels, channels of distribution consist of a set of
interdependent organizations—such as wholesalers, retailers, and sales agents—involved in
making a product or service available for use or consumption. Distribution channels are just one
component of the overall concept of distribution networks, which are the real, tangible systems
of interconnected sources and destinations through which products pass on their way to final
consumers. As Howard J. Weiss and Mark E. Gershon noted in Production and Operations
Management, a basic distribution network consists of two parts: 1) a set of locations that store,
ship, or receive materials (such as factories, warehouses, retail outlets); and 2) a set of routes
(land, sea, air, satellite, cable, Internet) that connect these locations. Distribution networks may
be classified as either simple or complex. A simple distribution network is one that consists of
only a single source of supply, a single source of demand, or both, along with fixed
transportation routes connecting that source with other parts of the network. In a simple
distribution network, the major decisions for managers to make include when and how much to
order and ship, based on internal purchasing and inventory considerations.
In short, distribution describes all the logistics involved in delivering a company's products or
services to the right place, at the right time, for the lowest cost. In the unending efforts to realize
these goals, the channels of distribution selected by a business play a vital role in this process.
Well-chosen channels constitute a significant competitive advantage, while poorly conceived or
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chosen channels can doom even a superior product or service to failure in the
market.
MULTIPLE CHANNELS OF DISTRIBUTION
For many products and services, their manufacturers or providers use multiple channels of
distribution. A personal computer, for example, might be bought directly from the manufacturer,
either over the telephone, direct mail, or the Internet, or through several kinds of retailers,
including independent computer stores, franchised computer stores, and department stores. In
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addition, large and small businesses may make their purchases through other
outlets.
Channel structures range from two to five levels. The simplest is a two-level structure in which
goods and services move directly from the manufacturer or provider to the consumer. Two-level
structures occur in some industries where consumers are able to order products directly from the
manufacturer and the manufacturer fulfills those orders through its own physical distribution
system. In a three-level channel structure retailers serve as intermediaries between consumers
and manufacturers. Retailers order products directly from the manufacturer, then sell those
products directly to the consumer. A fourth level is added when manufacturers sell to
wholesalers rather than to retailers. In a four-level structure, retailers order goods from
wholesalers rather than manufacturers. Finally, a manufacturer's agent can serve as an
intermediary between the manufacturer and its wholesalers, creating a five-level channel
structure consisting of the manufacturer, agent, wholesale, retail, and consumer levels. A five-
level channel structure might also consist of the manufacturer, wholesale, jobber, retail, and
consumer levels, whereby jobbers service smaller retailers not covered by the large wholesalers
in the industry.
FUNCTION
If selling directly from the manufacturer to the consumer were always the most efficient
methodology for doing business, the need for channels of distribution would be obviated.
Intermediaries, however, provide several benefits to both manufacturers and consumers:
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improved efficiency, a better assortment of products, routinization of
transactions, and easier searching for goods as well as customers.
The improved efficiency that results from adding intermediaries in the channels of distribution
can easily be grasped with the help of a few examples. Take five manufacturers and 20 retailers,
for instance. If each manufacturer sells directly to each retailer, there are 100 contact lines—one
line from each manufacturer to each retailer. The complexity of this distribution arrangement can
be reduced by adding wholesalers as intermediaries between manufacturers and retailers. If a
single wholesaler serves as the intermediary, the number of contacts is reduced from 100 to 25:
five contact lines between the manufacturers and the wholesaler, and 20 contact lines between
the wholesaler and the retailers. Reducing the number of necessary contacts brings more
efficiency into the distribution system by eliminating duplicate efforts in ordering, processing,
shipping, etc.
In terms of efficiency there is an effect of diminishing returns as more intermediaries are added
to the channels of distribution. If, in the example above, there were three wholesalers instead of
only one, the number of essential contacts increases to 75: 15 contacts between five
manufacturers and three wholesalers, plus 60 contacts between three wholesalers and 20
retailers. Of course this example assumes that each retailer would order from each wholesaler
and that each manufacturer would supply each wholesaler. In fact geographic and other
constraints typically eliminate some lines of contact, making the channels of distribution more
efficient.
Intermediaries provide a second benefit by bridging the gap between the assortment of goods and
services generated by producers and those in demand from consumers. Manufacturers typically
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produce large quantities of a few similar products, while consumers want small
quantities of many different products. In order to smooth the flow of goods and services,
intermediaries perform such functions as sorting, accumulation, allocation, and creating
assortments. In sorting, intermediaries take a supply of different items and sort them into similar
groupings, as exemplified by graded agricultural products. Accumulation means that
intermediaries bring together items from a number of different sources to create a larger supply
for their customers. Intermediaries allocate products by breaking down a homogeneous supply
into smaller units for resale. Finally, they build up an assortment of products to give their
customers a wider selection.
A third benefit provided by intermediaries is that they help reduce the cost of distribution by
making transactions routine. Exchange relationships can be standardized in terms of lot size,
frequency of delivery and payment, and communications. Seller and buyer no longer have to
bargain over every transaction. As transactions become more routine, the costs associated with
those transactions are reduced.
The use of intermediaries also aids the search processes of both buyers and sellers. Producers are
searching to determine their customers' needs, while customers are searching for certain products
and services. A degree of uncertainty in both search processes can be reduced by using channels
of distribution. For example, consumers are more likely to find what they are looking for when
they shop at wholesale or retail institutions organized by separate lines of trade, such as grocery,
hardware, and clothing stores. In addition, producers can make some of their commonly used
products more widely available by placing them in many different retail outlets, so that
consumers are more likely to find them at the right time.
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ROLE OF DISTRIBUTION CHANNEL
Distribution is important because:
Firstly, it affects sales - if it's not available it can't be sold. Most customers won't wait.
Secondly, distribution affects profits and competitiveness since it can contribute up to 50 percent
of the final selling price of some goods. This affects cost competitiveness as well as profits since
margins are squeezed by distribution costs.
Thirdly, delivery is seen as part of the product influencing customer satisfaction. Distribution
and its associated customer service play a big part in relationship marketing.
Decisions about physical distribution are key strategic decisions. They are not short term.
Increasingly it involves strategic alliances and partnerships which are founded on trust and
mutual benefits. We are seeing the birth of strategic distribution alliances. You can see
Southwestern Bell in the Hall Of Fame explain how marketing marriages provide new ways of
getting products and services in front of customers.
Channels change throughout a product's life cycle. Changing lifestyles, aspirations and
expectations along with the IT explosion offer new opportunities of using distribution to create a
competitive edge.
Controlling the flow of products and services from producer to customer requires careful
consideration. It can determine success or failure in the market place.
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The choice of channel includes choosing among and between distributors,
agents, retailers, franchisees, direct marketing and a sales force.
Deciding between blanket coverage or selective distribution, vertical systems or multi-channel
networks, strategic alliances or solo sales forces, requires strong strategic thinking.
Decisions about levels of stock, minimum order quantities, delivery methods, delivery frequency
and warehouse locations have major cash flow implications as well as customer satisfaction
implications.
All of these questions are considered in more detail in the sections on channels and strategies.
Meanwhile remember Lambin - "distribution is one of the two main roles of marketing."
Distribution Strategy
Distribution strategy is influenced by the market structure, the firm's objectives, its resources and
of course its overall marketing strategy. All these factors are addressed in the section on selecting
Distribution Channels.
The first strategic decision is whether the distribution is to be: Intensive (with mass distribution
into all outlets as in the case of confectionery); Selective (with carefully chosen distributors e.g.
speciality goods such as car repair kits); or Exclusive (with distribution restricted to upmarket
outlets, as in the case of Gucci clothes).
The next strategic decision clarifies the number of levels within a channel such as agents,
distributors, wholesalers, retailers. In some Japanese markets there are many, many
intermediaries involved.
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Next comes a sensitive strategic decision whether to go single channel or multi-
channel. Some producers, like Manchester United FC, use multi-channels - they use many
different routes, direct and indirect, to bring their products to their customers. Multi-channel
Systems like this are common where intensive distribution is required. So direct marketing is
combined with indirect marketing through intermediaries.
Then comes the next level of strategic decisions concerning strategic relationships and
partnerships. Two common strategies are Vertical Marketing Systems and Horizontal Marketing
Systems.
Vertical Marketing Systems involve suppliers and intermediaries working closely together
instead of against each other. They plan production and delivery schedules, quality
levels,promotions and sometimes prices. Resources, like information, equipment and expertise,
are shared. The system is usually managed by a dominant member, or 'channel captain'. VMS is
more flexible than vertical integration where the manufacturer actually owns the distribution
channel, for example, Doctor Martens boot manufacturers own their own retail store.
Horizontal Marketing Systems occur where organisations operating on the same channel level
(e.g. two suppliers or two retailers) co-operate. They then share their distribution expertise and
distribution channels. This can speed up the time taken to penetrate the market. There is room for
creative alliances here. See Southwestern Bell's alliance with Granada TV Shops in the Hall Of
Fame.
Resources available affect distribution strategy. Who can handle outbound logistics, marketing
and sales, and servicing? Can the supplier afford to deliver small quantities, can it provide more
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trucks, can its sales force 'push' products into national retail chains? Can the
organisation deal with thousands, maybe even millions of customers - can it cope? Does it want
to devote huge resources here or would it prefer to utilise someone else's resources in return for a
slice of the profits?
Difficult marketing dilemmas which make distribution strategy both critical and interesting. The
sections on Distribution Channels explore this in more detail.
Selecting members within a channel
Having decided to go through intermediaries the next question is whether to use agents or
distributors and also how many. Unlike distributors, agents don't hold stocks - they only act as
sales agents finding customers, collecting orders and passing them on to the supplier in return for
a percentage commission.
How would you select a distributor or an agent? Here are some criteria:
1. Market Coverage, 2. Sales Forecast, 3. Cost, 4. Other Resources, 5. Profitability, 6. Control, 7.
Motivation, 8. Reputation, 9. Competition, 10. Contracts
1. Market Coverage: - does the profile of existing customers match your target market profile? -
is the number of customers big enough to meet the required distribution penetration? - is the
existing sales force big enough to cover the territory? - are they dependant on a single
individual? - are the existing delivery fleet and warehouse facilities adequate?
2. Sales Forecast: How many can they sell? What are their forecasts based upon? Do they give a
'best, worst and average' forecast? Will they invest in large stock commitment? Do they have
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budgets to run promotions? Some suppliers even ask their distributors for a
marketing plan showing how they intend to market the supplier's products.
3. Cost: What will it cost in terms of discounts, commissions, stock investment and marketing
support?
4. Other Resources: Does the target market require anything special such as technical advice,
installation, quick deliveries, instant availability? If so can the distributor provide it?
5. Profitability: How much profit will the distributor generate for the supplier?
6. Control: Do they have a reporting system in place? How do they deal with problems? How
often are review meetings scheduled? Can you influence the way they present your products?
7. Motivation: Does the agent or distributor convey a sense of excitement and enthusiasm about
the product? What about its sales force - what's their reaction?
8. Reputation: Has it got a good track record? This includes the number of years in business,
growth and profit record, solvency, general stability and overall reliability. Is it dependant on one
key player?
9. Competition: Do they distribute any competitor's products?
10. Contracts: Some distributors demand exclusivity. Some agreements tie the supplier in for
certain periods of time. Check for flexibility in case things go wrong.
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The bottom line is: Can the agent or distributor be motivated, controlled and
trusted? Motivated to sell your product among a range of others. Controlled to feed back results
or change strategy if requested. And trusted to act as a reliable ambassador of your product?
Motivating Channel Members
Imagine these three scenarios:
You are a producer of 'Grand Pens' a brand of fountain pens.
A customer seeks advice from a pen shop on which pen to buy and the retailer strongly
recommends yours.
A customer asks a retailer, who stocks your pen, for another brand called 'Bad Pens'. The retailer
recommends and offers your pen as superior.
A retailer actively solicits business for you by asking customers buying other products to come
and have a look at the exquisite 'Grand Pen'.
This retailer is obviously very motivated. 'Mindshare', as it is called in the USA, has to do with
how important your product is in the distributor's mind relative to the other lines they carry.
Winning the battle for the distributor's share of mind can be more important than many other
marketing strategies. It applies in industrial markets and consumer markets where intermediaries
play important roles in the distribution channel.
In reality, maintaining continually high levels of motivation among intermediaries presents a
challenge. It requires a reasonable quality product, creative promotions, product training, joint
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visits between producer and distributor, co-operative advertising,
merchandising and display.
Most of these apply to agents as much as distributors and retailers.
Keeping the intermediary stimulated is important. Positive motivators, like sales contests are
preferred to negative motivators like sanctions such as reduced discounts and the threat of
terminating the relationship.
A positive reward works better than a negative punishment. Ideally there should be a shared
sense of responsibility - a partnership - a strategic partnership. The supplier and intermediary are
there to help each other. Vertical Marketing Systems are a good example.
Clear communications, covering sales goals, review meetings, reporting procedures, marketing
strategy, training , market information required, suggestions for improvements, all help. Regular
contact through visits, review meetings, dinners, competitions, newsletters, thank you letters,
congratulatory awards all help to keep everyone working closely together.
These are all non-financial incentives which provide a form of psychic income as opposed to
financial income. That's not to say that financial incentives aren't useful motivators, it just means
that there are other motivations there too. In fact the money spent on financial incentives is often
spent more effectively when the sales person is rewarded with a plaque, a gold pen or a holiday
in the Bahamas rather than just the cash which tends to get soaked up and lost in a sea of
ordinary household daily expenditure.
PRADEEP SINGH/0912270052/2009-2011
Non cash rewards appeal to the higher levels of Maslow's Hierarchy of Needs -
belonging, esteem and self actualisation.
Despite this, conflict can occur when too many distributors are appointed within close proximity
of each other, or the producer engages in a multiple channel strategy of direct marketing as well
as marketing through intermediaries.
Carefully motivating distributors is vital if goods are to flow smoothly through the channel and
reach satisfied customers.
WHAT FLOWS THROUGH THE CHANNELS
Members of channels of distribution typically buy, sell, and transfer title to goods. There are,
however, many other flows between channel members in addition to physical possession and
ownership of goods. These include promotion flows, negotiation flows, financing, assuming risk,
ordering, and payment. In some cases the flow is in one direction, from the manufacturer to the
consumer. Physical possession, ownership, and promotion flow in one direction through the
channels of distribution from the manufacturer to the consumer. In other cases there is a two-way
flow. Negotiation, financing, and the assumption of risk flow in both directions between the
manufacturer and the consumer. Ordering and payment are channel flows that go in one direction
from the consumer to the manufacturer.
There are also a number of support functions that help channel members perform their
distribution tasks. Transportation, storage, insurance, financing, and advertising are tasks that can
PRADEEP SINGH/0912270052/2009-2011
be performed by facilitating agencies that may or may not be considered part of
the marketing channel. From a channel management point of view, it may be more effective to
consider only those institutions and agencies that are involved in the transfer of title as channel
members. The other agencies involved in supporting tasks can then be described as an ancillary
or support structure. The rationale for separating these two types of organizations is that they
each require different types of management decisions and have different levels of involvement in
channel membership.
Effective management of the channels of distribution involves forging better relationships among
channel members. With respect to the task of distribution, all of the channel members are
interdependent. Relationships between channel members can be influenced by how the channels
are structured. Improved performance of the overall distribution system is achieved through
managing such variables as channel structure and channel flows.
SELECTING CHANNELS FOR SMALL BUSINESSES
Given the importance of distribution channels—along with the limited resources generally
available to small businesses—it is particularly important for entrepreneurs to make a careful
assessment of their channel alternatives. In evaluating possible channels, it may be helpful first
to analyze the distribution channels used by competitors. This analysis may reveal that using the
same channels would provide the best option, or it may show that choosing an alternative
channel structure would give the small business a competitive advantage. Other factors to
consider include the company's pricing strategy and internal resources. As a general rule, as the
number of intermediaries included in a channel increase, producers lose a greater percentage of
their control over the product and pay more to compensate each participating channel level. At
PRADEEP SINGH/0912270052/2009-2011
the same time, however, more intermediaries can also provide greater market
coverage.
Among the many channels a small business owner can choose from are: direct sales (which
provides the advantage of direct contact with the consumer); original equipment manufacturer
(OEM) sales (in which a small business's product is sold to another company that incorporates it
into a finished product); manufacturer's representatives (salespeople operating out of agencies
that handle an assortment of complimentary products); wholesalers (which generally buy goods
in large quantities, warehouse them, then break them down into smaller shipments for their
customers—usually retailers); brokers (who act as intermediaries between producers and
wholesalers or retailers); retailers (which include independent stores as well as regional and
national chains); and direct mail. Ideally, the distribution channels selected by a small business
owner should be close to the desired market, able to provide necessary services to buyers, able to
handle local advertising and promotion, experienced in selling compatible product lines, solid
financially, cooperative, and reputable.
Since many small businesses lack the resources to hire, train, and supervise their own sales
forces, sales agents and brokers are a common distribution channel. Many small businesses
consign their output to an agent, who might sell it to various wholesalers, one large distributor,
or a number of retail outlets. In this way, an agent might provide the small business with access
to channels it would not otherwise have had. Moreover, since most agents work on a commission
basis, the cost of sales drops when the level of sales drops, which provides small businesses with
some measure of protection against economic downturns. When selecting an agent, an
PRADEEP SINGH/0912270052/2009-2011
entrepreneur should look for one who has experience with desired channels as
well as with closely related—but not competitive—products.
Other channel alternatives can also offer benefits to small businesses. For
example, by warehousing goods, wholesalers can reduce the amount of storage
space needed by small manufacturers. They can also provide national distribution
that might otherwise be out of reach for an entrepreneur. Selling directly to
retailers can be a challenge for small business owners. Independent retailers tend
to be the easiest market for entrepreneurs to penetrate. The merchandise buyers
for independent retailers are most likely to get their supplies from local
distributors, can order new items on the spot, and can make adjustments to
inventory themselves. Likewise, buyers for small groups of retail stores also tend
to hold decision-making power, and they are able to try out new items by writing
small orders. However, these buyers are more likely to seek discounts, advertising
allowances, and return guarantees.
Medium-sized retail chains often do their buying through a central office. In order to convince
the chain to carry a new product, an entrepreneur must usually make a formal sales presentation
with brochures and samples. Once an item makes it onto the shelf, it is required to produce a
certain amount of revenue to justify the space it occupies, or else it will be dropped in favor of a
more profitable item. National retail chains, too, handle their merchandise buying out of
centralized offices and are unlikely to see entrepreneurs making cold sales calls. Instead, they
usually request a complete marketing program, with anticipated returns, before they will consider
PRADEEP SINGH/0912270052/2009-2011
carrying a new product. Once an item becomes successful, however, these
larger chains often establish direct computer links with producers for replenishment.
RESEARCH METHODOLOGY
As mentioned earlier in the report, Andhra Pradesh, Tamil Nadu and Karnataka, were a part of
the phased launch of the product in the market. A consumer sampling involving 5.5 lakh people
was conducted in a span of 30 days across major cities in order to give the product the required
marketing push and to recognize the prospective consumers and their opinion in order to develop
and market the product in a better way in the near future. The methodology used in studying and
understanding the perceived views of consumers towards the product was ‘SAMPLING’.
Sampling, by definition, is that part of statistical practice concerned with the selection of
individual observations intended to yield some knowledge about a population of concern,
especially for the purposes of statistical inference. Each observation measures one or more
properties of an observable entity enumerated to distinguish objects or individuals. In the case of
PRADEEP SINGH/0912270052/2009-2011
Minute Maid Pulpy Orange, the properties taken into concern are, the opinion
of people
Research Type-: Exploratory Research
 Sample Technique: Convenient Sampling
 Size: 70 Respondent and 3distributors are included in mysample size
 Description : Distributors, retailers and consumers were the different part of the
lucknow
Instrument: : Questionnaire
:observations of the respondent
RESPONDENT DETAILS
CHIL
CON. TYPE OF APPROX RAC DETA
OUTLET NAME PERSON CON .NO OUTLET SALES JUICE K S

M
KO PC S Ko V
995630778 1 1
Ariz gnrl store Arif 6 gen store 2 1 ko

993556850 1 .5 .
gwaof sweet house usman 4 gen store 1 5 ko+pc

993688743 1 2
Rambharosai yadav Rambharosai 5 tea stall 1 1 ko+pc

punjab di hati manu 2440692 gen store 1 0.5 ko
PRADEEP SINGH/0912270052/2009-2011
1
1 5 .
sribabulal store Anand kumar 32293032 gen store 1 5 ko

993640403 1 .5 .
sashi gnrl store mukan singh 8 gen store 1 5 ko /

979329981
Tushar gnrl store manoj kumar 5 gen store 2 0.5 ko

988974928
barkatu egg store niyaz 6 egg store 3 pc

979384442
Hazi sam store sohaid 1 gen store 2.5 1 pc

.
Nawal 920811769 .5 . 5 .
sahu gnrl store kishore 7 gen store 5 5 ko+pc

.
993573924 1 5 .
Hari om gnrl store Hari om 9 gen store 1 5 ko+pc

800432670 1
sukla misthan Nikhil shukla 2 sweets house 1 0.5 ko+pc

941515460 .5
yadav sweets R.k yadav 5 sweets house 1 - pc /

.
Makhan 945428778 5 .
maharaja bakery singh 6 sweets house 3 5 ko /

933660299 1.5
Adarsh gupta Adarsh 3 gen store 3 0.5 ko+pc

.
prabhat provison 945001709 5 .
store satish gupta 7 gen store 2 5 pc

993567191 1.5 1
lala furat lal jai prakash 1 gen store - .5 ko+pc /

Jetainder cofee 950736361
centre jetainder 7 cofee shop 2 pc /
PRADEEP SINGH/0912270052/2009-2011
10

sirdi bakeri niranjan lal cofee shop 2 - 1 ko+pc
raj kumar 933527797
Rk traders gupta 3 gen store 0.5 pc

959816668
Ishaar ishaar 3 gen store 3 - 1 pc

941557538 3
Om sweets ajay 8 rstrn 3 1 pc /

969576438
jhanka jal pan anurag 6 rstrn 3 2 pc
OUTLET SGA
NAME GLASS DETAILS STATUS SINGE REMARKS

KO
KO PC PC supply problem
/
12 9 MIX / freeze not provided

6 8 MIX / / supply problem
5 16 MIX / / supply problem
5 8 MIX /
6 7 MIX supply problem
5 MIX / - supply problem
6 MIX / supply problem
3 MIX / supply problem
9 MIX / small freeze
5 7 MIX / /
4 MIX / /
6 MIX /
6 5 MIX / small freeze
6 MIX /
7 5 MIX / /
No care of
7 - MIX / complaints
7 MIX / / small freeze
5 MIX / / small freeze
6 - MIX / small freeze
4 4 MIX / supply problem
5 4 MIX /
6 6 MIX / /
PRADEEP SINGH/0912270052/2009-2011
5 6 MIX / /
CHILLE
TYPE OF RAC DETAIL
OUTLET NAME CON. PERSON CON .NO OUTLET APPROX SALES JUICE K S
Pc
KO PC M S ko+pc Ko Vc Vc
983902944
cool zone prateek 0 cold drink .5 .5 .5 .5 ko+pc

ravindernathmish 993597452 sweet
Rama sweets ra 4 house .5 .5 .5 .5 ko+pc

941576293
Reva bakery pankaj 0 bakery .5 .5 .5 .5 ko+pc / /

genral
A s stores anil kumar 2442469 store .5 .5 .5 - ko+pc

936907000
laxmi bakers sunil kumar 8 restaurant 5 5 2 1 ko+pc / /

930790780 coffe
rohit coofhouse rohit yadav 9 house 3 2 3 2 ko+pc /

ravindernathmish genral
ravikishore ra store 2 ko+pc

993617121 genral
ganga gnrl store sandeep 3 store 3 - /
PRADEEP SINGH/0912270052/2009-2011
Himanshu gnrl genral
store myank store 3 1 1 pc /

mathuralal gnrl 995658994 genral .5 .
store gp guta 1 store 1 1 5 ko+pc /

993656607 genral
sindh bakery akash 6 store 3 1 1 - ko /

945002408 sweet
angli sweets ganesh akash 6 house 3 - 1 - ko /

palvi bakery palvi bakery 2 - 1 2 ko+pc /
890804270 sweet .5 .
deepti sweets deepak 4 house 3 3 5 ko+pc / /

920811055
gupta bhojanalya kapil 9 tea stall 1 1 2 1 ko+pc /

900520999 .5 .
raj pal heera lal 5 dhaba 1 5 ko

945045110 2
sanik restaurant raddheer 1 restaurant 4 3 1 ko+pc / /

933581558 .5
pawan restaurant bawn 2 restaurant 2 3 1 ko+pc /

lukys family 522244252 1
restrnt ali 2 restaurant 5 - 1 ko+pc /

991872338 1
ganpati restaurant raj 9 restaurant 1 1 1 ko+pc /
OUTLET GLASS
NAME DETAILS SGA STATUS SINGE REMARK

KO
ko pc PC
10 5 mix / freeze not available
11 6 mix
7 4 mix
3 4 mix supply problem
PRADEEP SINGH/0912270052/2009-2011
13 14 mix /
9 8 mix
2 mix
15 12 mix /
8 mix l/
7 2 mix /
11 - mix
7 3 mix /
12 6 mix
15 18 mix /
7 3 mix /
1 mix
17 19 mix / freeze not working
11 6 mix supply problem
15 13 mix / freeze not available
6 7 mix
CON. TYPE OF
OUTLET NAME PERSON CON .NO OUTLET APPROX SALES JUICE RACK
KO PC M S
1
resurb computers 9559431138 stationary 3 - - ko

Prag milk booth 9936333899 gen store 2 - 1 pc
1
Natghat multi store 9838375790 gen store 2 1 1 ko+pc

vind vasni store 9793419466 gen store 2 1 1 ko+pc
Priti store gen store 1 - 0.5 ko
PRADEEP SINGH/0912270052/2009-2011
1 1 1
rajesh shop 9956344620 coldrink 1 ko

Singh medical store 9795517426 coldrink 2 - 1 ko
.5 .
Satnam medical store 9506504930 medical 2 1 5 ko

1
shri bajrang bolnaly 9307805459 sweets 1 1 1 ko

1
jai guru store 9389329469 sweets 1 1 1 ko

1
lala chawk 9305822261 gen store 1 1 1 ko

.5 .
kum kum 9580293529 gen store 1 1 5 ko

.5 .
Raj gen store 9793032454 gen store 1 1 5 ko
OUTLET SGA
NAME GLASS DETAILS STATUS SINGE REMARK

ko pc KO PC
6 7 mix / /
4 5 mix / /
6 6 mix / /
5 3 mix / - small frezer
5 - mix /
8 - mix / /
7 - mix /
8 - mix /
7 5 mix /
6 7 mix / /
7 7 mix /
8 6 mix / /
supply
7 6 mix / / problem
PRADEEP SINGH/0912270052/2009-2011
ANALYSIS OF DATA
PRADEEP SINGH/0912270052/2009-2011
Above chart shows the sales of the coke at neelmatha
Observation -I found sales of coke at neelmatha is more than pepsi but pepsi is penetrating more
than coke in people’s mind, one reason can be strong
Observation
PRADEEP SINGH/0912270052/2009-2011
Chillers of coke are more than pepsi but coke could,nt able to retain the
shoopkeeprs because their complains are not seriously taken .
PRADEEP SINGH/0912270052/2009-2011
PRADEEP SINGH/0912270052/2009-2011
CONCLUSION
After thorough research, we come to the conclusion that the marketing
strategy of Coca Cola is working for them and the product is gaining
popularity among youth day by day,but the distribution channel lack many
things and company strategy regarding focusing on the other segments
apart from youth is not very effective The Sampling activity was a good first step into the area of
Marketing and Sales. It gave good amount of exposure mainly because after being trained,
trainees were given an opportunity to carry out the process ourselves. It helped in developing a
considerable amount of convincing skills, because, it took a lot of it to convince the store
managers to give us cooler space to cool the product for 2 hours and even more to convince the
customers into tasting the product and to get reviews from them. A good understanding of the
market was accomplished as around 70 people were spoken to and that group consisted of a
variety of customers. This even helped in the polishing of communication skills, a must-have to
survive and make it big in the present world. It even gave a good understanding of behavior of
customers when placed in different situations. It was a good opportunity to work on the skill of
patience, as a large number of customers were to be dealt with. It helped in developing the kind
of relations one needs to uphold in the corporate world and it helped in building up the right
attitude.
PRADEEP SINGH/0912270052/2009-2011
As all the points in the above mentioned paragraph, are the must-have skills for
anyone in the field of Marketing and Sales, the training period was a good experience and a good
stepping stone into the real business world.
LIMITATION OF SURVEY
PRADEEP SINGH/0912270052/2009-2011
As every aspect of life has its own limitation the same goes with research. The
few limitations attached to this research are:
1. As time and tide wits for none so is the case with this research. A much more
detailed analysis could be done had there been more time spent for data collection.
2. Data given by retailer are approximate and not properly provide due to which real
picture of market is not reflected.
3. Results indicate responses from a carefully selected bunch of respondents.
However they may vary from others.
4. The views of respondents are likely to change, as human nature is very dynamic.
5. The result figure may be baised since the subjects/ investors may provide wrong
information.
6. The survey may not give the whole scenario of market.
 Some subjects were not co-operative on their approach
SUGGESTIONS
Taking the above analysis into consideration, the following points can be
regarded for further marketing of the product:
PRADEEP SINGH/0912270052/2009-2011
• Advertisements should target the entire family, mainly because it has been
observed that irrespective of age and gender, more than 75% of the people have liked the product
and look forward to buy it again. Advertisements should highlight the main features of the
product that is the existence of pulp (which is already made prominent in Advertisements); it
should lay emphasis on the health and nutrition value of the product and also on the fact that it is
as good as fresh fruit juice.
• Due to the current prices, an eyebrow raiser for some, the product could be sold in packs of 2 or
more and there could be a price reduction.
• At Modern Trade Outlets, where shoppers buy in bulk, Minute Maid Pulpy Orange could be
given away free, if the customer buys goods worth more than a certain price line. This strategy is
already being carried out at the Food World outlets. It could be introduced even at Fab Mall,
Subhiksha, Spencer’s Daily, Big Bazaar etc.
• Coca Cola Company should try to emphasis more on providing their
infrastructure in the market to facilitate their customers.
• Marketing team should try to increase the availability of Coke in rural areas.
• They should also focus the old people.
• Now young generation has a trend to drink a coke 2 regular bottles at same
time, so providing more satisfaction to them company should introduce ½ liter
disposable bottle.
Company must pay attention to its distribution channel
PRADEEP SINGH/0912270052/2009-2011
DATA SOURCES:
_______________________________________________
http://www.cybernoon.com
http://news.bbc.co.uk
http://www.thecoca-colacompany.com
http://www.coca-cola.com
http://www.ko.com
PRADEEP SINGH/0912270052/2009-2011
•
http://www.hoovers.com
http://www.google.com
http://www.wikipedia.org
Monthly circular for the month of March, Hindustan Coca-Cola
Beverage Private Limited
Pradeep Singh
Contact number-8090087763
E-mail address: pradeep_singh1432002@yahoo.com
Career Objective:
To work with your organization to gain an opportunity to strengthen myself and organization.
Professional Qualification:
Pursuing Master of Business Administration from Shri Ramswaroop Memorial College of Engineering
& Management, Lucknow.
Area of Specialization:
Marketing (major) & Finance (minor)
PRADEEP SINGH/0912270052/2009-2011
Academic Qualification:
Science Graduate from AMITY University with 56%
Higher Senior Secondary from CBSE Board with 60%
Successfully completed Matriculation from CBSE Board with 52%
Summer Training Project:
Market research and selling of COCA COLA
Project:
Prepare a project on Electricity Consumption at Graduation level.
Extra- Curricular Activities:

Participated in Industrial Player in College & secured 1 rd position.
Personal Profile:
Date of Birth - 1st Jan.1988
Mother’s Name - Smt pushpa. devi
Father`s name - shri yadvender singh
Corresponding address:-
5a kalidash margj Lucknow. 226001
PRADEEP SINGH/0912270052/2009-2011
(pradeep singh)
Date:- 15-12-2010
Place: Lucknow
PRADEEP SINGH/0912270052/2009-2011

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SHRI RAMSWAROOP MEMORIAL COLLEGE OF

ENGINEERING AND MANAGEMENT, LUCKNOW

SUMMER TRAINING PROJECT REPORT ON

“ANALYSIS OF DISTRIBUTION CHANNELS AND OTHER FACTOR TO INCREASE

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF

DEGREE OF MASTER OF BUSINESS ADMINSTRATION

G.B.T.U UNIVERSITY, LUCKNOW

Submitted to: Submitted by:

OF ENGINEERING AND MANAGEMENT, LUCKNOW

SUMMER TRAINING PROJECT REPORT ON

“ANALYSIS OF DISTRIBUTION CHANNELS AND OTHER FACTOR TO INCREASE

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF

DEGREE OF MASTER OF BUSINESS ADMINSTRATION

G.B.T.U UNIVERSITY, LUCKNOW

organisational head UNDER GUIDENCE OF

Industries limited for the partial fulfillment of MASTER OF BUSINESS ADMINISTRATION.

project summarized forms of seven activities. They are-

received from this organization.

I am thankful to all of the placement department of shri ramswaroop memorial college of

Engineering and management to arrange my training program.

successful completion of my project.

I, Pradeep singh, student of M.B.A. final year of SRMCEM, LUCKNOW Batch-2009-2011,

hereby declare that this dissertation entitled “FINANCIAL RATIO ANALYSIS OF

DISTRIBUTION CHANNEL AND OTHER FACTORS TO INCREASE SALES ” is based

DATE: PRADEEP SINGH

 Vision, Mission & Values

 Some recent Milestone

 About Company & Products and Process

 PROFILE OF PLANT/PRIVATE CONCERN/FRANCHISERS

Process with the layout of processing areas

 ANALYSIS & INTERPRETATION

 ANALYSIS of VARIOUS FACTORS FOR SALES

 INTERPRETATION OF MOST IMPORTANT FACTOR

 ANALYSIS OF DISTRIBUTION CHANNEL

small amount of money- a billion times a day.”

people every day.

strategies to strengthen their position in the market.

preferences on account of changing lifestyles required the FMCG producing companies to

growth in the FMCG industry. Increased

put off having his dinner.

to 4 million jobs.(Source: HCCBPL, Monthly Circular, March)

Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic

detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides

Lever Limited, Nirma and Ricket Colman.

• Branded and Packaged foods and beverages- Health beverages,

Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

Coca-Cola Enterprises, established in 1986, is a young company by

the standards of the Coca-Cola system. Yet each of its franchises

has a strong heritage in the traditions of Coca-Cola that is the

foundation for this Company.

The Coca-Cola bottling system continued to operate as

independent, local businesses until the early 1980s when

franchises began to consolidate. In 1986, The Coca-Cola Company

merged some of its company-owned operations with two large

and BCI Holding Corporation's bottling holdings, to form Coca-Cola

Enterprises Inc. The Company offered its stock to the public on

November 21, 1986, at a split-adjusted price of $5.50 a share. On

an annual basis, total unit case sales were 880,000 in 1986.

The Coca-Cola Company traces it’s beginning to 1886, when an

Cola syrup for sale in fountain drinks. However the bottling

business began in 1899 when two Chattanooga businessmen

, Benjamin F. Thomas and Joseph B. Whitehead, secured the