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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

TABLE OF CONTENTS
Chapter
TITLE PAGE CERTIFICATE DECLARATION ACKNOWLEDGEMETS 1 2 3 4 5 6 7 8 INTRODUCTION RESEARCH M ETHODOLOGY INDUSTRY PROFILE COMPANY PROFILE THEORICAL ASPECTS OF THE STUDY RESERCH FINDINGS AND CONCLUSION RECOMMANDATION LEARNINGS BIBLIOGRAPHY I II III 2 6 9 22 47 56 75 76 77

Topic

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

CHAPTER 1 INTRODUCTION

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Soft drinks are non-alcoholic water-based flavored drinks that are optionally sweetened, acidulated and carbonated. Some carbonated soft drinks also contain caffeine; mainly the brown-colored cola drinks. Globally, carbonated soft drinks are third most consumed beverages. Per capita annual consumption of carbonated soft drinks is nearly four times the per capita consumption of fruit beverages (Source: Data from the Beverage marketing Corporation, as reported by the Canadian Soft drink Association). Soft drink consumption is growing by around 5% a year, according to the publication Global Soft drinks, published by the Zenith International. Total Volume reached 412,000 million liters, giving a global per capita consumption of around 67.5 liters per year. Major Players-Global The global soft drink industry is highly concentrated, being largely controlled by the two multinational companies; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft drink market in most countries in the world with 60% of the global cola market with its flagship CocaCola brand. Other notable players include Cadbury Schweppes.

Indian Scenario Market According to government estimates soft drinks marketed in India were 6540 million bottles in March 2001. The market growth rate, which was around 2-3% in 80s, increased to 5-6% in the early 90s and is presently 7-8% per annum. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days, which contributes more than 50% of the total yearly sales. In terms of regional distribution cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks and sodas are popular in southern states. Western markets have preference towards mango-flavored drinks.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Non-alcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks available in glass bottles, aluminum cans, PET bottles or disposable containers can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks and noncarbonated drinks include mango drinks. Soft drinks can also be divided into cola products and non-cola products. Cola products in Indian include brands like Coca- Cola, Diet Coke, Thumps Up Pepsi Cola, Diet Pepsi, etc. Cola drinks account for nearly 61-62% of the total soft drinks market in India. Non-Cola products account for 36% the total soft drink market (Source: India Info line Sector Report). Major Players in India The two global majors PepsiCo and Coca-Cola dominate the soft drink market in India. Coca-Cola, which had winded up its India operations during the introduction of the FERA regime, re-entered India 16 years later in 1993. Coca-Cola bought local brands-Thumps Up, Limca and Gold Spot from Parle Beverages and soft drink brands Crush, Canada Dry and Sport Cola from Cadbury Schweppes in early 1999. Pepsi started a couple of years before Coca Cola, in 1991 has bought over Mumbai based Dukes range of soft drink brands. There are conflicting figures about their market share. Some estimates put the market share of PepsiCo to be higher and some put the market share of Coca Cola to be higher. However, the soft drinks segment, dominated by these two companies, accounted for Rs 6,247 crores in sales.

1.2 Work Summary

23rd March, 2012 26th March, 2012 27th-29th March, 2012

Orientation with Mr. Sapan Patnaik, Sales Manager at city office. Route visit with salesman. Collection of data of outlets who deals with cold drinks at Aadalaj, New C.G.Road and Motera.

30th-31st March, 2012 2nd April, 2012

Making New customer at New C.G. Road Revisited to outlets of Motera


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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION 3rd-4th April, 2012 5th April, 2012 Making New customer at Motera Visited at Moteras Outlets and collected the information about the discount offered by Pepsi 6th- 10th April, 2012 Retail Market Survey(This survey is all about the customer satisfaction towards Coke service) 11th -16th April, 2012 17th -18th April, 2012 19th -20th April, 2012 21st -24th April, 2012 Making new customer at Motera Collection of data of outlet at I.O.C Road. Route visit with salesman. Visited the outlets of Pepsi and collected the information about the discount provided by Pepsi at Aadalaj, New C.G.Road and Motera. 10th -14th May, 2012 15th -17th May, 2012 Making new customer at Motera MIT(Most Important Task) has done in Motera with Mr. Sapan Patnaik. 18th- 26th May 2012 28th May -2nd June 2012 4th-11th June 2012 Collecting data and making new customer at I.O.C Road and Chandkheda. 12th -13th June 2012 14th -15th June 2012 Collecting data and making new customer at D. Cabin. Collecting data and making new customer at Janatanagar Making new customer at Motera. Making new customer at New C.G.Road

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

CHAPTER 2 RESEARCH METHODOLOGY

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R E D N orm for 2011


V PO --> P/D

E&D Type -1 & Conve n ie n ce


Hi+M e d Inc Cla s s
G S B D

Low Inc Cla s s


G S B

A vailability of S park ling 200 m l ond/G old (Cola + 3) ; S ilver/B ronz e (Cola [Diam 20 REGION + 2)] - M in 6 bottles of eac h S K U Chilled A vailability of S park ling CA N (330m l) or Xpres s [Diam ond/G old (Cola 2.1 Research Objective: (350m l) + 1) - M in 4 CA Ns / 6 bottles of eac h S K U Chilled 3

COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH


20 3 10 5 5 5 3 5 4 5 5 5 5 3 5 14 10 5 5 5 3 5 4 5 10 5 5 5 3 5 4 5 5 5 5 5 3 5 5 5 3 5 14 14 23 28 23 23 28 28

A vailability of Primary objective [Diam ond (Cola + 3), G old (Cola + 2), S park ling M obile (600 M L) 10 10 S ilver/ B ronz e (Cola + 1)] - M in 4 bottles of eac h S K U Chilled To make New Customer (retailer) for Coca Cola Company. A vailability of Fridge P ac k 1.25 ltr ond/G old (Cola + 2), S ilver/B ronz e [Diam 5 5 (Cola + 1)] - M in 2 bottles of eac h S K U. Chilled if the V C s iz e > = 9 c as er A vailability of c hilled brand Cok e: 3 fac ings of RG B /CA N/Xpres s /M ob with [M in 5 Secondary objective m in 4 bottles /CA Ns per fac ing] {Fac ings of any 1 pac k } A vailability of Juic e RG B 200m l or 250m l 6 bottles Chilled] [M in 5 5 3 5 4

To know the retailers perception towards Coca Cola.


3

A vailability of Juic Tetrastudy the6distribution system of Coca cola. e To 200m lin- pac k s Chilled] [M

A vailability of Juic MTo know the merchandising at ;Coca Cola. e (1 e obile ond / G old (2 flavours )) S ilver/B ronz [Diam 5 flavour)] - M in 4 bottles of eac h S K U Chilled A vailability of W ater T 1 Ltr M in 2 bottles Chilled PE -

To try to solve the problem of retailer by knowing their problems.. To understand the RED strategy.
4

Chilled F ac ings of RG B (ins ide V is i-Cooler) - Lead Cola, Flavour and M aaz a To understand the manufacturing process of coca cola. (M in 3 fac ings of eac h in Diam ond/G old, M in 2 fac ings of eac h in S ilver/B ronz e). 5 5 S hould have M in 4 bottles per fac ings

Availab ility T o tal

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65

65

65

65

65

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2.2 Scope of the study


This report is limited to survey area in Ahmadabad-Aadalaj, New C.G.Road, Motera, I.O.C Road, Chandkheda, D.Cabin and Jantanagar.

2.3 Research plan:


Type of Research: Data collection: Primary data collected: Secondary data collected: Personal interview, Questionnaires Companys website, Companys magazine, Internet
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Descriptive

COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Research instruments: Personal Interview, Observation, Survey

2.4 Sample design:


Sample size: Sampling type: Sampling tool for collecting information: 345 Convenient Personal Interview, Observation

2.5 Data Analysis


Tools: SWOT Analysis, Porters five force model and PESTEL Analysis.

2.6 Limitations
Surveying requires special skills, sending the questionnaire at dealership may bias the respondent. Non-cooperative approach and rude behavior of some of the respondents. Personal experiences and biases are there. This report is purely limited to retailers perspective.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

CHAPTER 3 INDUSTRY PROFILE

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

3.1 INTRODUCTION TO THE BEVERAGE INDUSTRY

Food & beverage companies are faced with market challenges driven by the slow industry growth, margin pressures and a marketplace crowded with new product introductions, which makes it difficult to differentiate and build brand value. Many food & beverage companies realize that an efficient supply chain can provide a competitive advantage. Global market forces are driving the continual evolution of the food and beverage industry. Consolidation, changing consumer preferences and increasing government regulations are dramatically impacting manufacturing and business strategy. In this fiercely competitive marketplace, you must offer a greater variety of products to meet consumer demand. At the same time, you must consistently and cost-effectively produce high quality products In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola has a 1% share, and the rest is divided among local players. Industry watchers say, fake products also account for a good share of the balance. There are about 110 soft drink producing units (60% being owned by Indian bottlers) in the country, employing about 125,000 people. There are two distinct segments of the market, cola and non-cola drinks. The cola segment claims a share of 62%, while the non-cola segment includes soda, clear lime, cloudy lime and drinks with orange and mango flavors. The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's) compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico 605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth Rs 2 bn. It also supports growth of industries like glass, refrigeration, transportation, paper and sugar. The Department of Food Processing Industries had stipulated that 'contains-no-fruit-juice' labels be pasted on returnable glass bottles. About 85% of the soft drinks are currently sold in returnable bottles. There was a floating stock of about 1000 mn bottles valued at Rs 6 bn. If the industry were to abide by the new guidelines, it would have to invest in new bottles, resulting in a cost outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest such a large amount. If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. The industry estimates that the beverage market should grow at twice the rate of GDP growth. The Indian market should have, therefore, grown by at least 12%. However, it has been growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a year, while the Russian market expanded at almost four times the rate of growth of the Indian market.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Soft and aerated drinks were considered products for the middle class and the affluent. That segregation is no more valid. Soft and aerated drinks are consumed by all except those who cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the lower, middle and upper middle classes. The soft drink industry has been urging the government to categories aerated waters (soft drinks) equitably with other consumer products of mass consumption and remove special excise duty. Here the demand of soft drink has articulated in graph witnessing past and future data.

Exhibit 1: Demand of soft drink

(Source: Ministry of food and beverage industry) Leading Brands Coca Cola, Thums Up, Limca, Fanta, Gold Spot, Rim Zim, Maaza, Pepsi, Mirinda, 7'UP, Mangola, Slice, Duke's, Lemonada, Crush, Canada Dry, Campa.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Exhibit 2: market Growth rate of Beverage industry in India Market Growth Rates 1990-91 - 1996-97 1996-97 - 2001-02 2001-02 - 2006-07 2004-05 - 2009-10 2009-10 - 2014-15 Sensitivity Coefficient 9.4% 7.8% 6.5% 5.4% 3.5% 5.2%

(Source: Ministry of food and beverage industry)

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

3.2 PORTERS FIVE FORCE MODEL

Rivalry Condition: Two main players Coca cola Pepsi


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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Duopoly competition The whole spectrum of market is divided only on two parts. One is in the hand of PepsiCo and second is in the hand of Coke. There are many more players like Parle agro but still is in the nascent stage. The main headache is fountain soda walah who are catering the market on the bases of low cost. Both are attacking on each other and hampering the profitability.

Substitute Product: There are many more products available in the market which can easily substitute Coke and its wide range of product. The first is fountain soda Welchs now a day sprawled like anything and directly attacks this branded beverage. Existing substitute products available in the market: Tea Juices Wine Milk Sport drink Coffee Beers Bottled water Powered drink Fountain soda

The main reason behind these substitutes is low price. The popularity of non branded products has created a buzz in the mind of customers through WOM

Threats of new Entrants: Barriers to entry: Established brand of Coke and Pepsi

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Both the companies have intimate relationship with their retail channels and would be able to defend their positions effectively through discounting or other tactics New comers need to overcome the tremendous marketing muscle and market presence of Pepsi, Coke, and some others. The soft drink inter-brand competition act of 1980, ratified strategy, making it impossible for new bottlers to get started in any region where existing bottlers operated. Power of Suppliers: Bargaining power of suppliers is low. There are main two inputs used. 1) Sugar Sugar: o Readily available in the open market o Its production is low Packaging: A lot of major supplier Abundant supply of inexpensive aluminum 2) Packaging

Power of Buyers: Five principle channel Food store Fountain Mass merchandisers Convenient stores

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Vending machine Bargaining power of buyers is high for fountain market and mass merchandisers. They will have strong negotiation power for bulk merchandising. The franchise holder may have legs on the head of company because of less profitability. Bargaining power is very low in vending machine because they have already a high profit margin.

3.3 PESTEL ANALYSIS


PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It is a tool that helps the organizations for making strategies and to know the EXTERNAL environment in which the organization is working and is going to work in the future. Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic drinks also need to undergo this PESTLE analysis to know about the external environment (especially their competitors and the opportunities available) in order to keep pace with the fast growing economy. Political Analysis: Political factors are how far a government intervenes in the operations of the company. The political factors may include tax policy, trade restrictions, environmental policy, laws imposed on the recruiting labors, amount of permitted goods by the government and the service provided by the government. Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and Drug Administration), it is an agency in the United States Department of Health and Human Services. Its headquarters is in USA and it has started opening offices in foreign countries as well. The job of the FDA is to check and certify whether the ingredients used in the manufacturing of Coca-Cola products in the particular country is meeting to the standards or not. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before introducing any ingredients in
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION its products and get prior approval from the FDA. The company also has to take into consideration of the regulation imposed by FDA on plastic bottled products. Apart from FDA the other political factors includes tax policies and accounting standards. The accounting standards used by the company changes from time to time which have a significant role in the reported results. The company also is subjected to income tax policies according to the jurisdiction of various countries. In addition to this, the company is also subjected to import and excise duties for distribution of the products in the countries where it does not have the outsourcing units. Moreover, if there is any unrest or changes in the government and any kind of protest by the political activists may decline the demand for the products. Also the situations like the unsure conditions prevailing in Iraq and escalation of the terrorist activities in these areas could affect the international market of our product. It creates an inability for the company to penetrate in the markets of such countries. Economic Factors: The economic factors analyze the potential areas where the firm can grow and expand. It includes the economic growth of the country, interest rates, exchange rates, inflation rates, wage rates and unemployment in the country. The company first analyzes the economic condition of the country before venturing into that country. When there is an economic growth in the country, the purchasing power among people increases. It gives the company or the marketer a good chance to market the product. Coca-Cola, in the past identified this correctly and rightly started its distribution across various countries. The net operating profits for the company outside US stands at around 72%. Along with this the company uses 63 various types of currencies other than US Dollar. Hence there is a definite impact in the revenues due to the fluctuating foreign currency exchange rates. A strong and weak currency tends to affect the exporting of the products globally. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. When there is an increase in the interest rates, it may deter the company in
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand, when there is an increase in the inflation the employee demand for a higher wage rate to cope up with the cost of living. This comes as additional cost for the company which cannot be reflected in the price of the final product as the competition and risk in this segment is higher. This is a threat in the external environment faced by the company. From the above explanation it is clearly seen that the economic factors involves a major impact in the behaviour of the company during various economic situations. Social Factors: Social factors are mainly the culture aspects and attitude, health consciousness among people, population growth with age distribution, emphasis on safety. The company cannot change the social factors but the company has to adjust itself to the changing society. The company adapts various management strategies to adapt to these social trends. Coca-Cola which is a B2C company, is directly related to the customer, so social changes are the most important factors to consider. Each and every country has a unique culture and attitude among the people. It is very important to know about the culture before marketing in a particular country. Coca-Cola has about 3300+ products in their stable, when entering into a country it does not introduce all the products. It introduces minimum number of products according to the culture of the country and the attitude of the people. Consumers and government are becoming increasingly aware of the public health consequences, mainly obesity which is the second social factor in the soft drinks industry. It inspired the company to venture into the areas of Diet Coke and zero calorie soft drinks. The problem of obesity is taken seriously among the youngsters who like to maintain a good physique. Hence Coke introduced dietary products for those youngsters who can enjoy Coke with zero calories. In one of the study it is said that Consumer from the age groups 37 to 55 are also increasingly concerned with nutrition. Since many are aware, they are concerned with the longevity of their lives. This will

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION affect the demand of the company in the existing product and also is an opportunity to venture into new health and energy drinks industry. Population growth rate and the age distribution is another social factor to be considered. It is very important because non-alcoholic markets have most of its share from the children and youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country becomes important for the success of the product in a country.

Technological Factors: Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of the products is relatively a Low-Tech business, although the creation of a new product with the perfect blend and taste is a science (an art in itself). Technological contributions are most important in packaging. The company relies on their bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit case volume is manufactured and distributed by their bottling partners in whom the company does not have controlling power. Hence it is necessary for the company to maintain a cordial relation with their bottling partners. If the company do not give ample support in pricing, marketing and advertising then the bottling industry while increase their short term profits, may become detrimental to the company. The advancement in technology in the company has led to: Introduction of new ways for the availability of Coca-Cola, it introduced general vending machines all over the world. In products it led to the development of new products like Cherry Coke, Diet Coke etc. The technical advancement in the bottling industries include, introduction of recyclable and non refillable bottles, introduction of cans which are trendy, stylish and popular among the youngsters. Legal Factors The legal factors include discrimination law, customer law, antitrust law, employment law and health and safety law. In Coca-Cola the business is subjected to various laws and regulation in the
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION numerous countries in which they do the business, the laws include competition, product safety, advertising and labeling, container deposits, environment protection, labour practices. In the US the products of the company is subjected to various acts like Federal Food, Drug and Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various environment related acts and regulations, the production, distribution, sale and advertising of all the products are subjected to various laws and regulations. Changes in these laws could result in increased costs and capital expenditures, which affects the company profitability and also the production and distribution of the products. Various jurisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health consequences. These requirements if become applicable in the future the company must be ready to accept and have necessary changes in hand for the same. Environment Factors These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. Also the company must follow the environmental issues related to the product manufacturing, packaging and distributing in various countries. It must adhere to the norms and market the product accordingly. Usage of renewable plastic in the PET bottles is followed by the company strictly.

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CHAPTER 4 COMPANY PROFILE

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HISTORY OF COMPANY Birth of refreshing idea John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. It was of 1886 when the pharmacist concocted a caramel-colored syrup in a three-legged brass bottle in his backyard. He first distributed the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed Delicious and Refreshing. Dr. Pembertons Partner and bookkeeper, Frank M. Robinson suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide today. Mr.Robinson taught the two Cs would look well in advertising. In 1886 sales of Coca-Cola averaged 9 drinks per day. That first, Dr.Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the no 1 soft drink brand ever since. For his efforts, Dr. Robbinson grossed $50 and spent $73.96 on advertising. By 1891, Atlanta entrepreneur Asia G. Candler had acquired complete ownership of the Coca-Cola business. Within four years, his merchandising flair helped expand consumption for $25 million. Robert W. Woodruff became president of the Coca-Cola Company in 1923, and his more than 6 decades of leadership took the business to unrivalled height of commercial success, making Coca-Cola an institution world over. 1894 A modest start for a Bold Idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called CocaCola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights bottle Coca-Cola across most of the United States (specifically excluding Vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. 1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the contour bottle Bottlers worried that the straight-sided bottle for CocaCola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit after their 1923 introduction. A
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to

The

contour bottle became one of the few packages ever granted trademark status by the U.S. Patent

COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and 30s International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s Packaging innovations For the first time, consumers had choices of Coca-Cola package and type -- the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s New brands introduced Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world. 1970s and 80s Consolidation to serve customers size

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

1990s New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

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4.2 Mission of the Coca Cola Company


The Mission of the Coca-Cola Company is to increase shareowner value over time. The Company over accomplished the by working with its business partners to deliver satisfaction and value to customers an consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis.

4.3 Vision of Coca-Cola Company


To achieve sustainable growth, we have established a vision with clear goals. Profit: Maximizing return to share owns 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: Being 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. Planet: Being a responsible global citizen that makes a difference.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

4.4 ABOUT THE COMPANY


Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.

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4.5 ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN HCCBPL:

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4.6 MANUFACTURING PROCESS AT HCCBPL

WATER TREATMENT:

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION We at HCCBPL Varanasi follow a batch treatment which includes coagulation & flocculation. The method ensures disinfection and settling of all macro impurities and thereafter it pass to sand, carbon filters to remove off odour ,off colour, off taste, and thus it is strictly bought in line with the WHO requirements. We are also using state of art micron filtration process where the water is filtered up to the extent of 1 micron before it is fed to the process. This extensive treatment of water under strict monitoring and sampling for quality leads to pure hygienic water with the highest quality meeting the Coca-Cola standards.

SYRUP PREPARATION: Coca-Cola uses highest quality of sugar which is controlled and ensured by its stringent pre-laid standards, which serves as the strict criteria before acceptance of a lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is given a contact time with hyflo and carbon at elevated temperature. It is then passed through a filter press which removes the carbon particles and other impurities before it declared fit for concentrate mixing. All this process takes place under the strict vigil by the quality department which maintains the appropriate records of the numerous tests carried out in the entire process which makes it a foolproof process. In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple syrup in very strict hygienic condition to yield final syrup. The entire syrup manufacturing area is maintained under a constant positive pressure which rules out the possibility of any external particles entering into the process room. CONTAINER WASHING: Container has been identified as one of the major critical control point in the entire manufacturing process & thats the reason that company has laid some of the very stringent and full proof systems which ensures Coca-Cola product to be of the highest quality and reflects our commitment towards delivering the best in class product to the consumers.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION The bottles received from the market are loaded on the conveyor by the uncasing machine and the arrays of the unwashed bottles passes through the four pre-wash inspections stations which ensures removal of rusty neck bottles, excessively dirty bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles pass into the bottle washing machine which uses intensive mechanical and chemical processes to clean and disinfect the bottles thoroughly and ensures the bottles to be ready for filling. However as an additional safety, there is again a post wash inspection station comprising of 4 sub-stations, which ensures removal of the chip necked bottles and suspected bottles from the lot. Thus the bottles are subjected to series of stringent inspections before it is fed to the filler for filling. MIXING, PROPORTIONING: Proportioning is basically a process where ready syrup is diluted in a predetermined fixed proportion with water and carbonated concentrate in to beverage conforming strictly to companys norms and specifications. It is carried out by an Italian Machine-MOJONNIER. FILLING & CROWNING: The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles through a rotator machine named FILLER. The bottles are immediately crowned by crowner (adjacent to the filler) and thereafter bottles passes through the date coding machine which enable the consumer to be 100 percent sure of consuming a perfectly safe and fresh product.

FINAL INSPECTION: After date coding, there is once again a final inspection station where light inspectors all low or high filled bottles and permit only the saleable product to pass through for casing to the caser machine. MANAGING THE WASTE WATER: Production lines maintain the waste water from the bottle washers, Syrup and Filler rooms. Entire waste water generated is treated at Waste Water Treatment Plant and discharged
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION through a 800 meters long pipeline specially laid to discharge the treated waste water away from inhabited areas. Part of this water is being used for gardening purpose within the plant premises. MARKET & CUSTOMERS: Once the finished product is ready, it is transported to the distribution centers and then to retail outlets by way of route trucks. The consumer buys the soft drink from the retailer outlets. The empty bottles are simultaneously collected by the distribution channels at the time of dispensing the finished products. SUPPLIERS AND OTHER BUSINESS PARTNER: Other than water and concentrate, bottling operation require sugar, CO2, bottles, crates and other miscellaneous materials. The Coca-Cola India division has a Supplier authorization program where suppliers are authorized based on a defined criterion. Environmental considerations are amongst the critical of these criterions.

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4.7 PRODUCT OF COCA-COLA


In RGB Segment 1. Coca-Cola

Coca-Cola is the most popular and highest-selling soft drink in history, as well as the bestknown product in the world. Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it's now the flagship brand of the largest manufacturer, marketer and distributor of non alcoholic beverages in the world.

2. Diet Coke

World's Third Largest Selling Soft Drink Diet Coke is for those who want plenty of taste but no calories. Diet Coke is also known as Coke light in some countries

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION 3. Thumbs Up

Today it is the largest selling soft drink brand in India. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude.

This brand clearly seeks to separate the men from the boys.

4. Sprite

Sprite is the brand that gained most share in sparkling beverages in year 2010. Present in over 130 countries worldwide. In India sprite is the second largest brand of soft drinks.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION 5. Fanta

Fanta the 'orange' drink Over the years Fanta has occupied a strong market place and is identified as the "The Fun Catalyst".

6. Limca

Limca's freshness is like no other- 'lime n lemoni' Lime 'n' lemoni Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from 'Nimbu' + 'jaisa' hence Lime Sa, Limca has lived up to its promise of refreshment and has been the original thirst choice of millions of consumers for over 3 decade.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

7. Maaza

Maaza the wholesome family fun Mango. Imagine this delicious fruit, bottled. This is what Maaza is all about. Maaza- the most loved beverage brand in India. It provides the most authentic experience of rich, juicy mangoesanytime, anywhere!

8. Maaza Milky Delite

A lip smacking milky blend of juicy and delicious mangoes.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Perfectly blended and delightfully refreshing, it offers a great taste in every sip. A taste so irresistible that you will never want to share it with anyone. More so, it is from Maaza that has been delighting mango lovers for over three decades. 9. Minute Maid Pulpy Orange

Refreshingly Orange Surprisingly Pulpy! Minute Maid one of the world's largest juice and juice drink brands.

10. Minute Maid Nimbu Fresh

Just Like Home-made Lemonade A lemon drink with no added preservative or colour, Minute Maid Nimbu Fresh offers a refreshing drinking experience as close to homemade Nimbu Paani as possible in a packaged format.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Nostalgia in a bottle, Minute Maid Nimbu Fresh offers 'Ghar Ki Yaadon Ka Ras' (memories of home-made lemonade) in every sip.

11. Minute Maid 100% Juice

Coca-Cola India Launched The Globally Successful Minute Maid 100% Juice In The Country.

Launch further strengthens its diversified product portfolio and will provide more choice to consumers.

12. Kinley Water

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Water you can trust and be truly safe and pure. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be.

13. Kinley Soda

India's no.1 National Soda brand. With its unique taste and formula Kinley Soda packs quite a punch

14. Burn (Energy Drink)

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Launched in North Europe in year 2000. Burn has expanded over 40 countries over a short 10 years period.

15. Schweppes

Schweppes was launched in India in 1999 after the international takeover of the brand from Cadbury Schweppes Ever since its launch Schweppes is recognized as a mixer that knows its drink the best. It is available in select towns and channels.

16. Georgia Gold

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Introduced in 2004. Come and explore the world. From freshly Ground Bean to cup Coffee, Quality Tea, Refreshing chilled Iced Teas and cold coffee.

4.8 FACTORS AFFECTING BUSINESS

Seasonality: Seasonality is one of the most important factors that affect the soft drink business. Seasonality is primarily influenced either by the weather, or by holidays and religious festivals. Within the Group, soft drink business has different seasonal cycles throughout the year.

Service frequency: This is another factor that affects the business. Service frequency is the time gap between visiting a particular outlet again. Service frequency directly affects the rotation time which in turn affects the value of business.

Demand pattern for the market: Every product has a different demand pattern and affects the business.

Price of the product: Price of the soft drinks also affects the business. Due to perfect competition in soft drink market, price of a product plays a major role in business.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Disposable Income: Disposable Income of the consumers also affects the business of the soft drink players. A high disposable income of the consumers ensures a high demand for the products in the market.

Demographic Profile: Demographic profile of consumer also affects the business and needs to be considered.

Competitors Policy: The policies of the competitors also affect the working of the business of other companies.

Government Policies: The government policies related to taxation or political interference also affect the business of the players in the soft drink industry.

4.9 SWOT ANALYSIS

STRENGTH: The company has got various strengths, which leads the company be a market leader. Some of the strengths listed below: A) Strong product line: The company has got various fast moving products which are going great job in the market. These soft drinks not only quench thirst but also refresh everyone it touches. One of the strong brands of the company is Thumps Up, which specially doing well in the Indian market. It has captured one of the major shares of the soft drink market. B.) Advertising:

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Advertising plays a major in promoting sales of the product. The company has got one of the best advertising strategies. Appointing film actors, as the brand ambassadors, makes a great impact on the mind of the customers. The company should try to launch more and more advertising and sales campaigns to promote sales to the maximum

WEAKNESS: As no man in this world is a complete man and so are the companies. Every company has got weakness so as Coca-Cola Company too. Some of the weaknesses which the company should overcome are as follows: A.) Distribution network: The company has got an average distribution network this is one of the reason why the company fails to fulfill the demand of the customer at time of peak seasons. It must go for some more bottling plants and should opt for better distribution channels to increase the sales in the best possible manner. B.) Pricing strategy: The company has got a pricing strategy as there is no certainty of rising or fall of price during the peak season. This also hamper the sales of the company as the retailers and distributor get dilemma whether to place the next order or not as increase or decrease in price may hamper their profit margin and blockage of the goods.

OPPORTUNITIES: Instead of weakness and threats the company the company has got various opportunities to which it has to go for. The opportunities for the company are as follows: A.) Large Market:

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION As India is said to be one of the biggest market in the world, thus the company survive for long and can expands to its length and width. Still there are thousands of villages which have not been covered by soft drink companies. If the company targets the rural market it can easily make large profits and thus can also satisfy its aim to benefit and refresh the whole nation. B.)Launch of other brands: Coca- Cola Company has got more than 300 brands which is running successfully over the world. Thus it can launch some more brands in the country, after studying the demand and desire of the people and can deep its roots by winning their minds and hearts.

THREATS: Some of the threats which the can face: (A) Competitors: One of the strong competitors of the company is Pepsi Co. thus it has to formulate such strategies which make it to remain one step ahead and give a strong competition to the competitors. Some of the other competitor in the path of growth to the company is the local soft drinks manufacturers who play an active part at the time of peak season. The other local refreshers like Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the company. (B) Govt. Policies: The policies of the government also play a major role for the company. The company can not perform well or in its own way by violating the rules of the government. Thus if the
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION government formulates some policies which creates hindrances in the working of the company it will prove to be one of the major threats.

CHAPTER-5 THEORETICAL ASPECTS OF THE STUDY


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5.1 DISTRIBUTION NETWORK


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

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail Stock --- Retail Shelf --- Consumer
The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. 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.

5.2 DISTRIBUTION ROUTES


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

Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Examples: Clubs, fine dine restaurants, hotels, multiplexes, Corporate houses etc.

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

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

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

5.3 DISTRIBUTION SYSTEM

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

Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)

Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. business locations to specifically merchandise our products. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS The Distribution process mainly consists of three departments:

Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their setup.

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

Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.

5.4 Red concept


RED stands for Right Execution Daily. It is a survey method for the company to know their position in the market. About red To check the availability of the visi cooler provided by the company to the retail outlets for their products. To check the activation in various outlets. To check the branding order of the various products in the cooler.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

There are four major factors to be taken care under RED strategy. 1. Impurity It means that if Coke has provided visi cooler to some outlet. So, it is need to make sure that no others companys product should kept in that visi cooler except Cokes products. 2. Brand order The company has given a brand order to the market developers to arrange the different brands in a specific order in the cooler. The order should be in such a way Thumsup Coca cola Sprite Limca Fanta Maaza Kinley Pet & Juice

3. Availability Availability is done according the type of outlet. There are four type of outlet mentioned below. According to this market developer has to ensure the availability of the products in the particular outlet. 4. Activation

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Activation is important because it helps to boost the sales of the company. it is done through the Glow sign, Shelf display, flanges. Combo boards, Table tops .This boards usually gives to the E&D outlets .It helps to attract the customers. Rack with header is provided to the grocery stores.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Activation Elements Market developer must ensure that all these activation elements must available at all the outlets. Detail of activation elements must available at GROCERY STORES: 1. WARM DISPLAY RACK 2. SHELF DISPLAY

Shelf display Other elements:1. Standee 3. Visi cooler brand strip 5. Table top rack

Display of rack 2. Six mobile hanger 4. Warm display rack 6. Tent card

visi cooler

5.5 Types of outlets


The company has divided their outlets on the basis of the following criteria Volume Channel Income group
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

1. Volume There are four types of outlets according to the volume of sales of the outletPlatinum Diamond Gold Silver Bronze >1500C/s & above per year >800C/s & above per year 500-799C/s per year 200-499C/s per year <200C/s per year

2. Channel (A) Grocery store Grocery (customer profile): Store stocking a variety of regular uses household items. The channels provide an opportunity for penetration as it propels home consumption. It includes all kirana stores, juice, departmental stores, supermarkets, provision stores etc. Necessary Availability - 2 liter and 300ml

(B) Eating & drinking channel 1 Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas. These outlets offer multiple opportunities to effect sales as people usually order something to drink along with food. It includes

- Restaurants

- Bars and Pubs


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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION - Dhabas - Cafes

(C) Eating & drinking channel 2 It includes bakery, sweet shops, tea shops, soft drink shops and juice centre.

(D) Convenience channel Pan/bidi shops (customer profile) : This segment includes PAN BIDDI outlets that stock cigarettes, mint, confectionary. It covers STD/ISD phone booths, travel channel etc. small outlets that mainly sell 200ml or 300ml bottles. They may also sell 600ml.

3. Income group According to the income group of the area Low Those outlets where low income customer comes.

Medium- Those outlets where medium income customer comes. High- Those outlets where high income customer comes

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

5.6 PJP (permanent journey plan)


(P.J.P. plan): The P.J.P. plan is a day wise schedule of a M.D.(Market Developer) which contains the names of the outlets to be visited by him coming under the campaign R.E.D. where the project has to be implemented. After getting permanent journey plan the next step was to visit the outlets for gaining initial information of every individual outlet as well as market on a whole. The visit to all the outlets of that area helped in revealing its market condition. Visiting the outlets clearly showed the picture of the market situation prevalent in market..

5.7 PRE SALE CONCEPT


This is a new concept by the company. In this concept company takes order one day before and then delivers the product to each route. So this gives more time to market developer to assure RED. This concept has so many advantages This gives more time to the market developer for the activation & branding purpose. By this company can easily implement the RED concept in better way. Presale concept makes assure of more availability of the products in the market. This concept is easy in processing. By this concept market developer can arrange the product in better way.
The Company can display its products in proper way so that customers can attract towards

it.
Does the preseller come to your outlet & clean companys cooler & arranges the product

properly?

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Chapter 6 Research Findings and Conclusion

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6.1 SEGREGATION OF OUTLETS

ADALAJ

Interpretation
As per above chart we can see that 52% Outlets are selling only Coke. And 14% outlets are selling both Coke and Pepsi thats means 66% of outlets are dealing with Coke whereas only 32% of outlets are selling exclusive. In Total 46% of outlet are dealing with Pepsi. Thats means Coke has good market share at adalaj. After having a healthy discussion with retailers of Adalaj it has been conclude that: There is need to provide products on time.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

If we can offer good discount some more outlets can shift to Coca-Cola. As there is some outlets who deals with Pepsi just due to discount offered by them.

D. CABIN

Interpretation
As per above chart we can see that 44% Outlets are selling only Coke, whereas only 7% outlet are dealing with Pepsi. There is huge scope in D.Cabin as 47% of outlet in not dealing with any kind of soft drinks.

After having a healthy discussion with retailers of D.Cabin it has been conclude that: There is need to concentrate on D.Cabin.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION


Retailers are interested in keeping Coke but due to the bad irregular service there were some outlets that stop selling Cokes product. By providing regular service there is scope to increase sale and no. of Cokes outlet.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

JANTANAGAR

Interpretation
As per above chart we can see that 47% Outlets are selling only Coke, whereas only 5% outlet are dealing with Pepsi. There is huge scope in Jantanagar as 45% of outlet in not dealing with any kind of soft drinks. After having a healthy discussion with retailers of Jantanagar it has been conclude that:

Need to focus on Jantanagar. Retailers are interested in keeping Coke but due to the bad irregular service there were some outlets that stop selling Cokes product. By providing regular service there is scope to increase sale and no. of Cokes outlet. If we can offer good discount some more outlets will start to coca cola.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION NEW C.G.ROAD (BEFORE)

Interpretation
As per above chart we can see that 32% Outlets are selling only Coke. And 18% outlets are selling both Coke and Pepsi thats means 50% of outlets are dealing with Coke whereas 36% of outlets are selling exclusive Pepsi and in total 54% of outlet are dealing with Pepsi. Thats means Pepsi has more command at New C.G.Road. After having a healthy discussion with retailers and observe the market of New C.G. Road it has been conclude that:

There is huge scope for Coke as the demand is very high of soft drink at New. C.G.Road Some retailers are not happy with the service and the discount offered by Coca-Cola. By providing regular service there is scope to increase sale and no. of Cokes outlet.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION NEW C.G ROAD (AFTER)

Interpretation
After working around 10 days at New C.G. Road I tried to convert the outlets of pepsi into Coke and also targeted those outlet which does not dealing with any type of softdrinks and have potential to sell the Coke. So, from the above graph we can see that there is 50% of outlets are now dealing with Coke. Earlier it was only 32%. 20% of outlets are dealing with Coke and Pepsi thats means in total 70% of market is covered by Coca-Cola. These are the following steps has taken to convert the outlets: Tried my best to solve the problem of retailers with help of Sales Executive and Market Developer. Company has improved the service. Company came up with different types of schemes to improve the sale and cover the market of New C.G. Road.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION


MOTERA (BEFORE)

Interpretation
As per above chart we can see that only 15% Outlets are selling only Coke. And 22% outlets are selling both Coke and Pepsi thats means only 37% of outlets are dealing with Coke whereas 38% of outlets are selling exclusive Pepsi and in total 60% of outlet are dealing with Pepsi. So basically Motera is dominated by Pepsi. After having a healthy discussion with retailers and observe the market of Motera it has been conclude that:

The Service is very bad. People are interested in keeping Coke but not getting product regularly thats why they stop dealing with Coke. Most of the outlets have pepsi but it can get converted into Coke.
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There is huge scope for Coke as the demand is very high of soft drink at Motera

MOTERA (AFTER)

Interpretation
After working around 25 days at Motera I tried to convert the outlets of Pepsi into Coke and also targeted those outlet which does not dealing with any type of soft drinks and have potential to sell the Coke. So, from the above graph we can see that there is 40% of outlets are now dealing with Coke, earlier it was only 15%. 27% of outlets are dealing with Coke and Pepsi thats means in total 67% of market has covered by Coca-Cola. These are the following steps has taken to convert the outlets:
MIT(Most Important Task) of 3 days has done at motera with Sapan Patnaik G .S.M of

Coca-Cola and Lavanya Hatwaine A.S.M . Tried my best to solve the problem of retailers with help of Sales Executive and Market Developer. Company has improved the service.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION Company came up with different types of schemes to improve the sale and cover the market of Motera. I.O.C ROAD AND CHANDKHEDA (BEFORE)

Interpretation
As per above chart we can see that only 11% Outlets are selling only Coke, whereas there is no shared outlet. 59% of outlets are selling exclusive Pepsi .So basically I.O.C Road and Chandkheda is dominated by Pepsi.

After having a healthy discussion with retailers and observe the market of New C.G. Road it has been conclude that: Retailers had problem with Distributor.
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION


Most of the outlets have Pepsi but it can get converted into Coke. There is huge scope for Coke as the demand is very high of soft drink at I.O.C Road and Chandkheda

I.O.C ROAD AND CHANDKHEDA (AFTER)

Interpretation
After working around 10 days at I.O.C Road and Chandkheda I tried to convert the outlets of Pepsi into Coke and also targeted those outlet which does not dealing with any type of soft drinks and have potential to sell the Coke. So, from the above graph we can see that there is 52% of outlets are now dealing with Coke, earlier it was only 11%. 15% of outlets are dealing with Coke and Pepsi thats means in total 67% of market has covered by Coca-Cola. These are the following steps has taken to convert the outlets:

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION MIT(Most Important Task) has done at I.O.C Road with Lavanya Hatwaine A.S.M and Wasim Sayiad Sales Executive . Tried my best to solve the problem of retailers with help of Sales Executive and Market Developer. Company has improved the service.
Company came up with different types of schemes to improve the sale and cover the

market of I.O.C Road and Chandkheda.

6.2 RETAIL MARKET SURVEY OF COCA-COLA OUTLETS


This survey has conducted to understand the satisfaction level of Retailers from Coca- Cola in regards to: 1) Service 2) SGA (Cooler) Problem 3) Discount Problem 4) Credit Problem

1) SERVICE PROBLEM

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Interpretation
As per the above chart we can see that there are15% of existing customer of Coca-Cola is having problem of service 2) SGA (COOLER) PROBLEM

Interpretation

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION As per the above chart we can see that there are 9% of existing customer of Coca-Cola is having cooler problem.

3) DISCOUNT PROBLEM

Interpretation
As per the above chart we can see that there are 11% of existing customer of Coca-Cola is having problem in discount. That means they want more discount.

4) CREDIT PROBLEM

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

Interpretation
As per the above chart we can see that there are3% of existing customer of Coca-Cola is having Credit Problem. It means they want product on credit.

Conclusion:
From the above chart we can see that the main problem is Service and discount provided by the Coke. It has also seen that 9% of retailers is not happy with the cooler. Coke is needed to provide good service and more discounts to the retailers. Otherwise there is chance that they will shift to Pepsi. They need to provide regular service of SGA (cooler).

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

6.3 RETAIL MARKET SURVEY OF PEPSI OUTLETS


This survey has conducted to understand Problem of Pepsi retailers with Coca-Cola. So with the help of this survey they can understand the problem and thry to solve them. And try to convert them from Pepsi to Coca-Cola. For that they have used certain tools: 1) Service Problem 2) Discount Problem 3) Past Conflict 4) Credit Problem

1) SERVICE PROBLEM

Interpretation
As per the above chart we can see that there are 36% of Pepsi Outlets having a problem with service of Coca-Cola and thats why they are with Pepsi.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION 2) DISCOUNT PROBLEM

Interpretation
As per the above chart we can see that there are 14% of Pepsi Outlets having a problem of discount with Coca-Cola and thats why they are with Pepsi.

3) PASTCONFLICT

Interpretation

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION As per the above chart we can see that there are 4% of Pepsi Outlets having past conflict with Coca-Colas distributor and thats why they are with Pepsi. 4) CREDIT PROBLEM

Interpretation
As per the above chart we can see that there are 1% of Pepsi Outlets having credit problem with Coca-Cola and thats why they are with Pepsi.

Conclusion:
From the above chart we can see that the main problem is Service and discount provided by the Coke. It has also seen that credit is not a problem.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION If Coke with provide good service and come up with some good scheme then they can easily convert some outlet from Pepsi to Coke.

N.C (NEW CUSTOMER)

When company opens a new counter of Coca-Cola whether converted from Pepsi to Coke or to those outlets which are not selling any type of soft drinks or we convinced them to sell Coke is become N.C for company. We had made 60 N.C in which 25 at Motera, 17 at I.O.C Road, 4 at Chandkheda, 10 at New C.G.Road, 2 at Jantanagar and 2 at D. Cabin. LIST OF N.C

SL. NO.
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

NAME OF OUTLETS
1 Sri Umiya Parlor Amba Store Shriji Ice Cream & Parlor Chatrapal Store Aanand Traders Villege Pool Savariya Bhojanalay Bapasitaram Pan Place Radhe Parlour Shri Ji milk Palace Nakoda Dairy Parlour the Spice root shiv shakti chavana prakash Store Bhavishay Kirana store Umiya Dairy Vahanvati Kirana store Kodiyar Pan Parlor

AREA
Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera Motera
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Grukrupa Tea Stall Joyti Super Market Chehar Pan Parlour Shri Ambika Super Market Om Dairy Brahinani Kirana Shivganga Soda Shop Pappu Pan Parlour Mukhavas pan Parlour Shrinath Dairy parlour Aastha Amul Parlour Krish Novelty Saini sweets and dairy parlour Sundha kirana Store Ganesh Kirana store Pruthavi Pan Parlour Vaishali Pan Parlour Jay Ambe Tea Stall Minal Chavana Shree Nimbeshwer Chawana and sweet mart Khetlaji Kirna Store Chamunda Dairy Parlour Shree ji dairy Parlour Shree Chamunda Dairy Parlour Joyti pentry Service Shreeji Parlor shoping center Dhanlaxmi Kirana Store Harsh Provision store Raj Kirana store Dolby Pan Place Swad Panjab Karunavati Vadapav and dabeli raj laxmi kirana store Radhaswami Parlour shobaram ice cream Ramdev Kirana Store Shoper's Point Ashok Pan Parlour Motera Motera Motera Motera Motera Motera Motera I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road I.O.C Road Chandkheda Chandkheda Chandkheda Chandkheda New C.G. Road New C.G. Road New C.G. Road New C.G. Road New C.G. Road New C.G. Road New C.G. Road New C.G. Road New C.G. Road New C.G. Road Jantanagar
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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION 58 Savan Pan Parlour 59 Ramvijay Provision Store 60 Mahakali Soda Shop Jantanagar D.cabin D.cabin

FINDINGS AND CONCLUSION


Demands of Coca- Cola products are very high. Coca-Cola is market leader. Distributor is not concentration much on small outlets. They are just concentrating on sales not market share. Services in this area are very bad especially at Motera. Schemes are not reaching to the retailers. Schemes of Pepsi are more than Coke. Around 10% of outlets are having cooler problem. Credit facilities are not available by Distributor. Company should provide Racks and other material of advertisement to retailers.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

CHAPTER -7 RECOMMENDATIONS
Company should insure that distributor in not doing any kind of discrimination between small outlet and big outlets. And providing product on time as per the requirement of the outlet. For that they can conduct the monthly survey to the small outlets. Company should ensure that retailers are getting regular service. For that any senior person can make a surprise visit at distributor points and outlets. Company should increase the profit margin of retailer, which help them to increase sale and get the competitive advantages. Company should provide more and regular schemes to retailer. And they also need to ensure that it reaches to the retailer. For that they can conduct the survey on monthly basis, which also help them in maintaining good relation with retailers. Company should more effectively handle the cooler complaints. To solve this problem they can appoint 1 engineer for each area. Company should provide the one week credit facilities to that retailer who is asking for credit. Credit facilities in not asked by every outlet. As per my survey there is not more than 10% of retailers are asking for credit. For that company need to talk to the Distributor and come up with some solution. Because those 10% outlets can make a great change in companys sales. Company should provide Racks and other material of advertisement to retailers. For that they can ask the M.D (Market Developer) to make a data of outlets that dont have any

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION kind of advertising materials. And provide them the same, which is also Help Company to increase sale. Overall service should be improved for getting more sales and to be the market leader. For that they can do a survey on monthly basis.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

LEARNINGS

In this project my job was to collect information of outlets and making new customer (retailer) for Coca- Cola for which I need to go all the outlets and get the information and also approach those outlets who deals with Pepsi to start with Coke products which helps me to increase my confidence level.

My main work was to convince those retailer who deals with Pepsi and the retailer who do not deal with any kind of soft drinks to start with Coke Product. This helps me to increase my convincing power.

I had also learned how to build and maintain relationship. As this business is basically based on relationship. If the company executives have good relation with retailers, then sales will automatically increase.

I had also learned that how to handle the customer at different situation.

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COMPARATIVE STUDY ON SOFTDRINK RETAILER OF AHMEDABADS NORTH REGION

BIBLIOGRAPHY
Websites:
www.scribd.com http://www.Coca-Colaindia.com/products/product_list_desc.html http://en.wikipedia.org/wiki/Coca-Cola http://www.Coca-Colaindia.com/ourcompany/missionvalues.html http://www.Coca-Cola.co.uk/brands

Thank you

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