College
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION CHAPTER 2: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) CHAPTER 3: ORGANIZATION STRUCTURE OF COCA-COLA CHAPTER 4: DIVISIONS WITHIN COCA-COLA CHAPTER 5: NATURE OF BUSINNESS WITHI ALTERNATIVE BEVERAGES CHAPTER 6: DISTRIBUTION MODEL FOLLOWED CHAPTER 7: PARAMETERS WHICH DETERMINE THE HEALTH OF A CHALLEP PARTNER CHAPTER 8: SUGGESTIVE METHODS TO INCREASE THE HEALTH OF A CHANNEL PARTNER CHAPER 9: CONCLUSION
CHAPTER 1: INTRODUCTION
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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 worlds 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 Companys beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-todrink 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 worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Companys assets and resources whilst limiting business risks.
of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of 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.
(HCCBPL)
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 INTEGRITY: Be real ACCOUNTABILITY: If it is to be, its up to me COLLABORATION: Leverage collective genius
MISSION
To Refresh the World... In body, mind, and spirit To Inspire Moments of Optimism... Through our brands and our actions To Create Value and Make a Difference... Everywhere we engage.
2.2: PRODUCTS
The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The CocaCola Company has a wide range of products out of which the following products are marketed by HCCBPL:
In KINLEY section:
AGM/AOD
Human
Plant Manager
Route to Market
Resource Manager
Finance Manager
Sales Executive
Market Developer
Key Accounts
There are 2 main divisions within coca-cola they are Mainline Alternative beverages
Under alternative beverages there are two main divisions they are:
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.
DISTRIBUTION ROUTES
The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
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.
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)
In order to determine the health of a channel partner below there is a swot analysis about sai eshwari enterprises
Strengths
1. Customers typically rebel against price increases by switching to competing products, but if a company has pricing power, customers will continue using Channel partners products and services. Channel partner has the ability to charge customers higher prices 2. Channel partners get a profit margin of 4% 3. If the products gets expiry the company will take the products in return and as an exchange the company will provide the fresh stock to the channel partners 4. Size advantages lower Channel partners risks. The larger Channel partner gets, the more resources they have to pursue new markets and defend themselves against rivals 5. Lower costs lead to higher profits for Channel partner. A low cost leader can undercut rivals on price 6. When given a choice, customers are loyal to Channel partner. Instead of targeting all customers, Channel partner only needs to target new customers in order to grow their business 7. A strong brand name is a major strength of Channel partner. This helps Channel partner to distribute their the products easily to their targeted costumers because consumers place additional value in the brand
Weaknesses
1. An inefficient work environment means that Channel partners goods and services are not being utilized properly 2. A high debt burden increases the risk that Channel partner goes bankrupt if they make a poor business decision. Increasing risks can increase Channel partners debt interest payments 3. Weak customer service hurts Channel partners reputation and causes customers to flee to competitors, who are more respondent 4. A weak supply chain can delay the arrival of products to Channel partners customers. Unnecessary delays can hurt Channel partner over the long run, because customers will cancel orders 5. There is a high staff turnover in distributors place
Opportunities
1. Leveraging the balance sheet allows Channel partner to quickly expand into other markets and products 2. New services help Channel partner to better meet their customers needs. These services can expand Channel partners business and diversify their customer base 3. Emerging markets are fast growing regions of the world that enable Channel partner to quickly expand 4. New markets allow Channel partner to expand their business and diversify their portfolio of products and services
Threats
1. Mature markets are competitive. In order for Channel partner to grow in a mature market, it has to increase market share, which is difficult and expensive 2. The availability of substitute products hurts Channel partners ability to raise prices, because customers can easily switch to another product or service (for Eg:- Del Monte products) 3. Intense completion can lower Channel partners profits, because competitors can entice consumers away with superior products 4. Consumers can change their tastes very quickly. Channel partner depends on knowing which goods and services consumers want
The channel partner has to concentrate more on the outlets which located
in north Bangalore such as in Devanahalli and yelahanka
The channel partner has to concentrate in cracking new outlets Their must be a proper time should be fixed for PSR in order to visit the
market because many of the PSRs are not regular in time properly in the markets
The salary of the PSRs must be increased then they would work The channel partners should not treat all the customers in a similar
Golden customers: The customers who buy large N.O of stock Eg: Mudhuloka, Drops, DPS etc Silver customers: The customers who buy average N.O of stock Eg: Volga wines, SLNS wines, wine yard, spritz and more etc Bronze customers: The customers who buy limited N.O of stock Eg: college canteens, small restaurants etc
CHAPTER 8: CONCLUSION
The activity was a good experience in the area of Sales. It gave me a good amount of exposure mainly because after being trained, I got an opportunity to carry out the process with the help of ASM Team leader and PSRs. It helped me in developing a considerable amount of convincing skills, because, it took a lot of it to convincing the store managers to buy the products and even in collecting cheques and even more to convince the customers to buy new products which they werent selling before. A good understanding of the market was accomplished as I spoke to many people 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. 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.