A Project Report On

“ANALYZING AND ENHANCING

MARKET OPPORTUNITIES OF
COCA COLA IN GHAZIABAD.”

2008-10
Under the Supervision of:
Submitted By:

Mr. Alok Agarwal (ASM)

Sheetal Kachroo
(PGDM-

Marketing 2nd Year)

JAIPURIA INSTITUTE OF
MANAGEMENT NOIDA
ACKNOWLEDGEMENT

1
The Research report will be incomplete without
acknowledge giving my sincere, gratitude to all persons
who have helped me in the preparation of this report. First
of all, I thank “GOD ALIMIGHTY” for the blessings
showered on me throughout this project work, which has
helped me in the successful completion of the training. I
express our thanks to Hindustan Coca Cola Beverages
Pvt. Ltd. (HCCBPL) for granting me the permission to work
with the esteem organization.

I am also thankful to Mr. Vineesh Priyadarshan (GSM)

and then to Mr. Alok Aggarwal (ASM) and then to
Sushant Tiwari (SE) of Coca cola Hindustan Beverage
Ltd. They guided and helped me in all possible ways they
could, at every stage of the report.

I would also like to thank all the Executives, distributors &

staff of Hindustan Coca Cola Beverages Pvt. Ltd. who
provided us all the relevant information and their kind
support, on the basis of which this report has been
prepared.

I thank my college Jaipuria Institute of Management for

having given me this opportunity to put to practice, the
theoretical knowledge that I imparted from the program. I
thank the internship mentor, Ritu Wadhwa for having
guided and supported me through the course of the
internship. I take this opportunity to thank my parents and
friends who have been with me and offered emotional
strength and moral support.

Last but not the least, I am thankful to all Retailers who

gave us their precious time and support to fulfill this task,
without their co-operation the study would not have seen
the light of the day& complete.

Sheetal Kachroo
2
PGDM –Marketing
2nd Year.

3
 PREFACE

In summer the consumption of soft drinks is more due to

hot weather in this time chilled weather is needed
everywhere and everybody irrespective of age difference.
In the market peoples not only need water, but they want
some taste too. Here comes the need of soft drinks: it has
become an essential part of market as people like it in
addition to the bottles, now days packages of soft drinks
i.e. Tin cans, Pet packs of i.e. Litters canisters and
dispensers are introduced to enhance the impact in sales.

The PGDM curriculum is designed in such a way that

student can grasp maximum knowledge and can get
practical exposure to the corporate world in minimum
possible time. Business schools of today realize the
importance of practical knowledge over the theoretical
base.

The research report is necessary for the partial fulfillment

of PGDM curriculum and it provides an opportunity to the
student in understanding the industry with special
emphasis on the development of skills in analyzing and
interpreting practical problems through the application of
management theories and techniques. It is a new platform
of learning through practical experience, which
incorporates survey and comparative analysis. It gives the
learner an opportunity to relate the theory with the
practice, to test the validity and applicability of his
classroom learning against real life business situations.

EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-
known taste was born in Atlanta, Georgia, on May 8, 1886.
Coca-Cola Company is the world’s leading manufacturer,

4
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. Coca-Cola
was first introduced by John Syth Pemberton, a
Pharmacist, in the year 1886 in Atlanta, Georgia when he
concocted caramel-colored syrup in a three-legged brass
kettle in his backyard. He first “distributed” the product by
carrying it in a jug down the street to Jacob’s Pharmacy
and customers bought the drink for five cents at the soda
fountain. Carbonated water was teamed with the new
syrup, whether by accident or otherwise, producing a drink
that was proclaimed “delicious and refreshing”, a theme
that continues to echo today wherever Coca-Cola is
enjoyed.

Coca-Cola originated as a soda fountain beverage in 1886

selling for five cents a glass. Early growth was
impressive, but it was only when a strong bottling system
developed that Coca-Cola became the world-famous brand
it is today. 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. 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.

The main objective of this report attempts to reveal the

secrets and tools which would be helpful in horizontal
market expansion for the whole coca cola product range
by first analyzing and then enhancing the market of Coca

5
 Cola. The study was divided into two parts. First was to
analyze the existing market, try to find their problems and
reasons for doing business with company. In second part
untouched market was explored and their reasons for not
doing business with company where studied. Thus report
will provide an opportunity to know existing and new
retailers psychographic needs, it may provide an
opportunity to the Coca-Cola to frame a good future plan
to satisfy maximum needs, taste preferences of the
retailers and established its guiding role in the market of
Ghaziabad & in marketing plan for different areas.

T A B L E O F C O NT E N T S
S.NO. PARTICULARS P. NO.

1. INTRODUCTION 1
1.1 A Brief Insight - The FMCG Industry in India 3
1.2 A Brief Insight – Beverage Industry in India
5

2. THE COCA COLA COMPANY 9

2.1 History 9

2.2 Manifesto for Growth 11

2.2.1 Values 11
2.2.2 Mission 12
2.2.3 Vision for Sustainable Growth 12
2.3 Soft Drink Market in India 13

6
3. HINDUSTAN COCA COLA BEVERAGES PVT. LTD. 16
(HCCBPL)

3.1 About the Company 16

3.2 Manifesto for Growth 19

3.2.1 Values 19
3.2.2 Vision for Suitable Growth 20
3.2.3 Mission 20
3.2.4 Quality Policy 21
3.3 SWOT Analysis of HCCBPL 21
3.3.1 Strengths 21
3.3.2 Weaknesses 22
3.3.3 Opportunities 23
3.3.4 Threats 24

4. PRODUCTS 26

5. ABOUT PROJECT 34

5.1 Data Collection 35

5.2 Types of Expansion 35
5.2.1 Vertical Expansion 35
5.2.2 Horizontal Expansion 36

5.3 Horizontal Expansion 36

5.3.1 Reasons for Horizontal Expansion. 37
5.3.2 Benefits of Horizontal Expansion 37
5.3.3 Advantages of Horizontal Expansion 37
over Vertical Expansion

5.4 Seven Criteria’s 40

5.5 Segmentation Model 42
5.6 Procedure for Opening a New Outlet 43
5.6.1 Analysing the outlet 44
5.7 Steps for Targeting the New Retailers 45
5.8 Paraphernalia Used 48
7
 5.9 Intangible Element of Project 49
5.9.1 R.E.D Survey 49

6. INTRODUCTION TO STUDY 50

6.1 Purpose of the Study 50

6.2 Objective of the Study 50

6.3 Work Assigned 50

6.4 Objective of the Work 51

6.4.1 Primary Objective 51
6.4.2 Secondary Objective 51

7. RESEARCH METHODOLOGY 52

8. FINDINGS & ANALYSIS 55

8.1 Questionnaire for Existing Retailers 55

8.2 Questionnaire for New Retailers 67

8.3 Other General Findings 74

9. LIMITATIONS, SUGGESTIONS & CONCLUSION 78

9.1 Limitations 78

9.2 Suggestions 79
9.3 Conclusion 82

10. SIGNIFICANCE OF STUDY 83

10.1 To the Researcher 83

10.2 To the Company 83

10.3 To Others 83

11. ACHIEVEMENTS IN TERMS OF SALES 84

11.1 Models & Working Formats 84

11.2 The 3 A’s Strategy 85

8
11.3 Working Methodology 86
11.3.1 Route visit 86

11.4 Focus on Availability of Products in Outlets 86

11.5 Focus on Visibility of Coke Products in 87
Outlets 87
11.6 Achievements 92
11.7 Some Important Points

BIBLIOGRAPHY 95

APPENDIX

MISCELLANEOUS

9
 LIST OF FIGURES

Fig. Particulars Page

No . No.
Chapter 1
1 Market of Drinks in India 2
2 Soda Companies Market Share & 3
Change in Volume, World Wide
3 Beverage Industry in India 6
4 Market Share of Soft Drinks in India 7
Chapter 2
5 Vision for Suitable Growth 13
Chapter 3
6 Location of COBO, FOBO & Contract 18
Packaging in India
7 Chain Followed from Manufacturer to 25
Retailer
Chapter 5
8 Opportunity to Open New Outlets 35
9 Impact of New Retailers on Business 37
10 Impact of New Retailers on 38
Distributors
Chapter 8
11 Location of Existing Outlets 55
12 Type of Existing Outlets 56
13 Depth of Problems in Different Areas 66
14 Location of New Outlets 68
15 Type of New Outlets 68
16 Exclusive Outlets 76
7

17 Different Type of Outlets Selling 73

Different Brands

LIST OF TABLES

TABLE Particulars Page

10
 No. No.
Chapter 8 CROSS TABULATION

1. Location & Sale 58

2. Type of Outlet & Reasons for Doing 60
Business with Coke
3. Location & Problems Faced While 63
Doing Business
4. Type of Outlet & Reasons for Not 69
Doing Business
5. Location & Life span of business 72

11
 CHAPTER - 1

INTRODUCTION

Coca-Cola, the product that has given the world its best-
known taste was born in Atlanta, Georgia, on May 8, 1886.
Coca-Cola Company is the world’s leading manufacturer,
marketer and distributor of non-alcoholic beverage
concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and
syrups to bottling and canning operators, distributors,
fountain retailers and fountain wholesalers. The
12
Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and
not-ready-to-drink powder products. In addition to this, it
also produces and markets sports drinks, tea and coffee.
The Coca-Cola Company began building its global network
in the 1920s. Now operating in more than 200 countries
and producing nearly 400 brands, the Coca-Cola system
has successfully applied a simple formula on a global
scale: “Provide a moment of refreshment for a small
amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers

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

The Company aims at increasing shareowner value over

time. It accomplishes this by working with its business
partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and
services, thus increasing brand equity on a global basis.
They aim at managing their business well with people who
are strongly committed to the Company values and culture
and providing an appropriately controlled environment, to
meet business goals and objectives. The associates of
this Company jointly take responsibility to ensure

13
compliance with the framework of policies and protect the
Company’s assets and resources whilst limiting business
risks.

Figure 1: Market of drinks in India

(Source: - Beverages Marketing Corporation)

Figure 2: Soda companies market share & change in volume,

worldwide (Source: - Beverage Digest)

14
1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN
INDIA

Fast Moving Consumer Goods (FMCG), also known as

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

The Indian FMCG industry witnessed significant changes

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

By the turn of the 20th century, the face of the Indian

FMCG industry had changed significantly. With the
liberalization and growth of the Indian economy, the
Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media,
such as television and the Internet. Apart from this, social
changes such as increase in the number of nuclear
families and the growing number of working couples
resulting in increased spending power also contributed to
the increase in the Indian consumers' personal
consumption. The realization of the customer's growing
awareness and the need to meet changing requirements
and preferences on account of changing lifestyles
required the FMCG producing companies to formulate
customer-centric strategies.

These changes had a positive impact, leading to the rapid

growth in the FMCG industry. Increased availability of
15
retail space, rapid urbanization, and qualified manpower
also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market,

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

16
Though the absolute profit made on FMCG products is
relatively small, they generally sell in large numbers and
so the cumulative profit on such products can be large.
Unlike some industries, such as automobiles, computers,
and airlines, FMCG does not suffer from mass layoffs
every time the economy starts to dip. A person may put off
buying a car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a

steady manner irrespective of global market dip, because
they generally satisfy rather fundamental, as opposed to
luxurious needs. The FMCG sector, which is growing at
the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 crores. The main
contributor, making up 32% of the sector, is the South
Indian region. It is predicted that in the year 2010, the
FMCG sector will be worth Rs.143000 crores. The sector
being one of the biggest sectors of the Indian Economy
provides up to 4 million jobs.

1.2: A BRIEF INSIGHT: BEVERAGE INDUSTRY IN

INDIA
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.

17
Non-Alcoholic
Non-Carbonated
Carbonated
Beverages
Non-Cola
Alcoholic
Cola

FIGURE 3: Beverage industry in India

18
 Figure
4: Market shares (%) of soft drinks in India
(Source: - www. Google.com – Images)

19
The beverage industry is vast and there various ways of
segmenting it, so as to cater the right product to the right
person. The different ways of segmenting it are as
follows:

• Alcoholic, non-alcoholic and sports beverages

• Natural and Synthetic beverages
• In-home consumption and out of home on
premises consumption.
• Age wise segmentation i.e. beverages for kids, for
adults and for senior citizens
• Segmentation based on the amount of
consumption i.e. high levels of consumption and
low levels of consumption.

If the behavioural 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.

20
Four strong strategic elements to increase consumption of
the products of the beverage industry in India are:

• The quality and the consistency of beverages needs

to be enhanced so that consumers are satisfied and
they enjoy consuming beverages.
• The credibility and trust needs to be built so that
there is a very strong and safe feeling that the
consumers have while consuming the beverages.
• Consumer education is a must to bring out benefits
of beverage consumption whether in terms of health,
taste, relaxation, stimulation, refreshment, well-
being or prestige relevant to the category.
• Communication should be relevant and trendy so
that consumers

The beverage market has still to achieve greater

penetration and also a wider spread of distribution. It is
important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up
to the overall growth of the food and beverage industry in
the economy.

21
CHAPTER - 2

22
 THE COCA-COLA COMPANY

2.1: HISTORY

T
his story begins in Atlanta, Georgia on May 8,
1886, when a pharmacist called Dr. John Smith
Pemberton first mixed Coca-Cola in his back
yard. This formula, which was made from
carbonated water, cane sugar syrup, caffeine, extracts of
kola nuts and cola leaves, was brought to the nearby
Jacobs’ Pharmacy where it made its Debut as a soft drink
the same day, selling for only 5 cent. His bookkeeper
named this drink “Coca-Cola” after the first two
ingredients and the same distinctive script he wrote it in is
the same logo they use to this day.

He first “distributed” the product by carrying it in a jug

down the street to Jacob’s Pharmacy and customers
bought the drink for five cents at the soda fountain.
Carbonated water was teamed with the new syrup,
whether by accident or otherwise, producing a drink that
was proclaimed “delicious and refreshing”, a theme that
continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M.

Robinson, suggested the name and penned “Coca-Cola” in
the unique flowing script that is famous worldwide even
today. He suggested that “the two Cs would look well in
advertising.” The first newspaper ad for Coca-Cola soon
appeared in The Atlanta Journal, inviting thirsty citizens
to try “the new and popular soda fountain drink.” Hand-
23
painted oil cloth signs reading “Coca-Cola” appeared on
store awnings, with the suggestions “Drink” added to
inform passersby that the new beverage was for soda
fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine

drinks per day. The first year, Dr. Pemberton sold 25
gallons of syrup, shipped in bright red wooden kegs. Red
has been a distinctive colour associated with the soft
drink ever since. For his efforts, Dr. Pemberton grossed
$50 and spent $73.96 on advertising. Dr. Pemberton never
realized the potential of the beverage he created. He
gradually sold portions of his business to various partners
and, just prior to his death in 1888, sold his remaining
interest in Coca-Cola to Asa G. Candler, an entrepreneur
from Atlanta. By the year 1891, Mr. Candler proceeded to
buy additional rights and acquire complete ownership and
control of the Coca-Cola business. Within four years, his
merchandising flair had helped expand consumption of
Coca-Cola to every state and territory after which he
liquidated his pharmaceutical business and focused his
full attention on the soft drink. With his brother, John S.
Candler, John Pemberton’s former partner Frank Robinson
and two other associates, Mr. Candler formed a Georgia
corporation named the Coca-Cola Company. The
trademark “Coca-Cola,” used in the marketplace since
1886, was registered in the United States Patent Office on
January 31, 1893.

24
The business continued to grow, and in 1894, the first
syrup manufacturing plant outside Atlanta was opened in
Dallas, Texas. Others were opened in Chicago, Illinois,
and Los Angeles, California, the following year. In 1895,
three years after The Coca-Cola Company’s
incorporation, report to share owners that “Coca-Cola is
now drunk in every state and territory in the United
States.”

As demand for Coca-Cola increased, the Company quickly

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

2.2: MANIFESTO FOR GROWTH

2.2.1: 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, it’s up to me.
• Collaboration: Leverage collective genius.
• Innovation: Seek, imagine, create and delight.
25
• Quality: What we do, we do well.

2.2.2: Mission

• To refresh the world, in body, mind, and spirit.

• To inspire moments of optimism, through our brands
our actions.
• To create value and make a difference, everywhere
we engage.

2.2.3: Vision for sustainable growth

• Profit: Maximizing return to shareowners while being

mindful of our overall responsibilities.
• People: Being a great place to work where people
are inspired to be the best they can be.
• Portfolio: Bringing to the world a portfolio of
beverage brands that anticipate and satisfy people’s
desires and needs.
• Partners: Nurturing a winning network of partners
and building mutual loyalty.
• Planet: Being a responsible global citizen that makes
a difference.

26
 Figure 5: Vision for sustainable growth
(Source: - HCCBPL).

2.3: SOFT DRINK MARKET IN INDIA

Today India is one of the most potential markets, with

population of around 900 million people, the Indian soft
drinks market was only of 200 cases per year. This was
very low even compared to Pakistan and Philippines.
Population and potential market are two major reasons for
major multinational companies of entering India. They feel
that a huge population coupled with low consumption can
only lead to an increase in the soft drink market. Another
increase in the sale of soft drinks in the scorching heat
and the climate of India, which is together have
contributed to a 30% growth in the soft drinks industry. If
the demand continues growing at the same rate, within
two years the volume could touch 1 billion cases. All
27
these factors are the reasons for the entry two giant of
the soft drink industry of the world to enter the Indian
market. These two giants Pepsi and Coca-Cola,
Themselves share 96% of the soft drink market share.
Rest is shared by Cadbury’s Schweppes, Campa Cola and
other soft drink brands. But was the scene same 20 years
ago? The answer is No. 1970 was the year of pure soft
drinks Campa Cola and Parle people (Thums Up and
Limca).

Soft drink consists of a flavour base, sweetener and

carbonated water. In general terms non-alcoholic drinks
are considered as soft drinks this name soft drink was
given by Americans as against hard which is mainly
alcoholic. The major participants involved in the
production and distribution of soft drink are concentrate
and syrup producers, bottlers and retail channel.
Concentrate producers manufacture basic soft drink
flavours and retail channel refers to business location that
tells or serves the products directly to consumers.

Soft drink is not a product, which a person plans to buy

before hand, but is an impulse purchase. Lots of sale
depends upon the strength of merchandizing done at the
point of sale. It all begin in 1977, a change in central
government led the exit of coca-cola which preferred to
quit rather diluting its equity to 40% in compliance with
the Foreign Exchange Regulation Act (FERA). The first
national cola drink to pop up was double seven. In the
meantime, Pure Drinks, Delhi on coke’s exit, switched
over to Campa Cola.

The beginning of 1980’s saw the birth of another cola

drink, Thums Up, Parle the Gold spot people, launched it
in 1978-79, as “Refreshing Cola”. By the mid-eighties Mc

28
Dowells launched Thrill, and by the late eighties there was
Double Cola, which entered in India market, as a NRO-run
outfit with its plant in Nasik (Maharashtra), in 1978 Parle,
Indian soft drinks market (share 33%) with its gold spot
and Limca brands. Later Thums Up also started Thums
Up. At the same time the threat to the Indian soft drinks
was that of fruit drinks. In 1988, fruit drinks market was
valued at Rs. 40 crores and grew at the rate 20%.

Coca-Cola entered Indian by buying up to 69% of the

1,800 crores soft drink market (i.e. 5 Parle Export brands
of Thums Up’s, Limca, Gold spot, Citra & Maaza). Today
the scene has changed making it a direct battle between
two giant Coca-Cola and Pepsi. The picture will become
clearer by looking at the India market shares in the
beverage industry.

One of the strongest weapons in Coke armoury is the

flexibility it has empowered its people with. In Coke every
employee, may he be a manager or salesman, have an
authority to take whatever steps he or she feels will make
the consumers aware of the brand and increase its
consumption. Thus Coke believes in establishing and
nurturing creditability of the salesman and making
commitment to grow business in accounts. All these
factors together led to a high growth in the Indian market
and constantly increasing market share.

29
CHAPTER - 3

30
 HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED (HCCBPL)

3.1: ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of

refreshment and shares an experience that millions of
others have savoured. All of those individual experiences
combined have created a worldwide phenomenon – a truly
global brand. On the distribution front, 10-tonne trucks,
open-bay three-wheelers that can navigate the narrow
alleyways of Indian cities, ensure availability of Coke
brands in every nook and corner of the country. The
company-owned Bottling arm of the Indian Operations,
Hindustan Coca-Cola Beverages Private Limited is
responsible for the manufacture, sale and distribution of
beverages across the country.

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 Parle’s plants and a well set bottling network, an
excellent base for rapid introduction of the Company’s
International brands was formed. The Coca-Cola Company
acquired soft drink brands like Thumps Up, Gold-Spot,

31
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 favour of
resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500

managers, over 60 manufacturing locations, 27 Company
Owned Bottling Operations (COBO), 17 Franchisee Owned
Bottling Operations (FOBO) and a network of 29 Contract
Packers that facilitate the manufacture process of a range
of products for the company. It also has a supporting
distribution network consisting of 700,000 retail outlets
and 8000 distributors. Almost all goods and services
required to cater to the Indian market are made locally,
with help of technology and skills within the Company.
The complexity of the Indian market is reflected in the
distribution fleet which includes different modes of
distribution, from 10-tonne trucks to open-bay three
wheelers that can navigate through narrow alleyways of
Indian cities and trademarked tricycles and pushcarts.
“Think local, act local”, is the mantra that Coca-Cola
follows, with punch lines like “Life ho to Aisi” for Urban
India and “Thanda Matlab Coca-Cola” for Rural India.

32
This resulted in a 37% growth rate in rural India visa-vie
24% growth seen in urban India. Between 2001 and 2003,
the per capita consumption of cold drinks doubled due to
the launch of the new packaging of 200 ml returnable
glass bottles which were made available at a price of Rs.5
per bottle. This new market accounted for over 80% of
India’s new Coca-Cola drinkers. At Coca-Cola, they have
a long standing belief that everyone who touches their
business should benefit, thereby inducing them to uphold
these values, enabling the Company to achieve success,
recognition and loyalty worldwide.

COBO
FOBO
CONTRACT PACKAGING

Figure 6: Locations of COBO, FOBO & Contract Packaging in India.

(Source: - www. Google.com – Images)

3.2: MANIFESTO FOR GROWTH

3.2.1: Values

The values that the employees in the Company are

expected to keep up to and work by regularly are as
follows:

33
• Leadership: To take an initiative and lead, motivate
and drive the team with energy and zeal, to deliver
outstanding results.
• Innovation: To continuously strive for progress and
reach the next level of excellence in everything we
do.
• Passion: To be deeply committed and display drive
and energy in the quest to deliver outstanding
performance.
• Teamwork: To unite for greater strength and work
collectively as a group towards the achievement of
common goals.
• Ownership: To think and act like owners at all levels;
to have decisions taken at the lowest appropriate
level.
• Accountability: To be individually and transparently
accountable to our colleagues for delivering agreed
targets and goals.

34
3.2.2: Vision for sustainable growth

To provide exceptional strategic leadership in the Coca-

Cola India System-resulting in consumer and customer
preference and loyalty, through Coca-Cola’s commitment
to them, and in a highly profitable Coca-Cola Corporate
branded beverages system.

3.2.3: Mission

To create consumer products, services and

communications, customer service and bottling system
strategies, processes and tools in order to create
competitive advantage and deliver superior value to;

• Consumers as a superior beverage experience.

• Consumers as an opportunity to grow profits through
the use of finished drinks.
• Bottlers as an opportunity to grow profits in volumes.
• Bottlers as a trademark enhancement and positive
economic value added.
• Suppliers as an opportunity to make reasonable profits
when creating real value-added in an environment of
system-wide team work, flexible business system and
continuous improvement.
• Indian society in the form of a contribution to economic
and social development.

35
3.2.4: Quality policy

“To ensure customer delight, we commit to quality in

our thoughts, deeds and actions by continually
improving our processes every time.”

3.3: SWOT ANALYSIS OF HCCBPL

3.3.1: Strengths

• Distribution network: The Company has a strong and

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

• Strong brands: The products produced and marketed

by the Company have a strong brand image. People
all around the world recognize the brands marketed
by the Company. Strong brand names like Sprite,
Fanta, Limca, Thums Up and Maaza add up to the
brand name of the Coca-Cola Company as a whole.
The red and white Coca-Cola is one of the very few
things that are recognized by people all over the
world. Coca-Cola has been named the world's top
brand for a fourth consecutive year in a survey by

36
 consultancy Interbrand. It was estimated that the
Coca-Cola brand was worth $70.45billion.

• Low cost of operations: The production, marketing

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

3.3.2: Weaknesses

• Low export levels: The brands produced by the

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

37
 • Small scale sector reservations limit ability to invest
and achieve economies of scale: The Company’s
operations are carried out on a small scale and due
to Government restrictions and ‘red-tapism’, the
Company finds it very difficult to invest in
technological advancements and achieve economies
of scale.

3.3.3: Opportunities

• Large domestic markets: The domestic market for the

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

• Export potential: The Company can come up with

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

38
 • Higher income among people: Development of India
as a whole has lead to an increase in the per capita
income thereby causing an increase in disposable
income. Unlike olden times, people now have the
power of buying goods of their choice without having
to worry much about the flow of their income. The
beverage industry can take advantage of such a
situation and enhance their sales.

3.3.4: Threats

• Imports: As India is developing at a fast pace, the

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

• Tax and regulatory sector: The tax system in India is

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

• Slowdown in rural demand: The rural market may be

alluring but it is not without its problems: Low per

39
 capita disposable incomes that is half the urban
disposable income; large number of daily wage
earners, acute dependence on the vagaries of the
monsoon; seasonal consumption linked to harvests
and festivals and special occasions; poor roads;
power problems; and inaccessibility to conventional
advertising media. All these problems might lead to a
slowdown in the demand for the company’s products.

Sales
Manufacturing
Indirect
Direct
andDistributors
Distribution
Distribution
Outlets
Distribution
Plant,Operations
DASNA

Figure 7: Chain followed from manufacture to retailer

40
 CHAPTER - 4

PRODUCTS

The Coca-Cola Company offers a wide

range of products to the customers
including beverages, fruit juices and bottled
mineral water. The Company is *always
looking to innovate and come up with, either complete new
products or new ways to bottle or pack the existing drinks.
The Coca-Cola Company has a wide range of products out
of which the following products are marketed by HCCBPL:

BRANDS OF INDIA:-

41
 The world's favourite drink. The world's most valuable
brand. The most recognizable word across the world after
OK. Coca-Cola has a truly remarkable heritage. From a
humble beginning in 1886, it is now the flagship brand of
the largest manufacturer, marketer and distributor of non-
alcoholic beverages in the world. In India, Coca-Cola was
the leading soft-drink till 1977 when govt. policies
necessitated its departure. Coca-Cola made its return to
the country in 1993 and made significant investments to
ensure that the beverage is available to more and more
people, even in the remote and inaccessible parts of the
nation. Coca-Cola returned to India in 1993 and over the
past ten years has captured the imagination of the nation,
building strong associations with cricket, the thriving
cinema industry, music etc. Coca-Cola has been very
strongly associated with cricket, sponsoring the World
Cup in 1996 and various other tournaments, including the
Coca-Cola Cup in Sharjah in the late nineties. Coca-
Cola's advertising campaigns Jo Chaho Ho Jaye and Life
ho to Aisi were very popular and had entered the youth's
vocabulary. In 2002, Coca-Cola launched the campaign
"Thanda Matlab Coca-Cola" which sky-rocketed the brand
to make it India's favourite soft-drink brand. In 2003, Coke
was available for just Rs. 5 across the country and this
pricing initiative together with improved distribution
ensured that all brands in the portfolio grew leaps and

Glass PET Can Fountain

200 ml, 3 0 05 0 0 m l , 1 . 5 L ,
Various
ml, 500 m l ,2 L , 2 . 2 5 L , 330 ml
Sizes
1000 ml 500 ml + 100 ml
bounds.

p is k nown for its s trong, fiz z y tas te and its confident, m ature and uniquely m as c uline attitude. This
42 brand c learl
Glass PET Can Fountain
200 ml, 3 0 05 0 0 m l , 1 . 5 L ,
Various
ml, 500 m l ,2 L , 2 . 2 5 L , 330 ml
Sizes
1000 ml 500 ml + 100 ml

Lime n' lemoni Limca, the

drink that can cast a tangy refreshing spell on anyone,
anywhere. Born in 1971, Limca has been the original thirst
choice, of millions of consumers for over 3 decades. The
brand has been displaying healthy volume
growths year on year and Limca continues to be the
leading flavour soft drink in the country.

The success formula? The sharp fizz and lemoni bite

combined with the single minded positioning of the brand
as the ultimate refresher has continuously strengthened
43
the brand franchise. Limca energizes refreshes and
transforms. Dive into the zingy refreshment of Limca and
walk away a new person.
Glass PET Can Fountain
500 ml, 1.5 L,
200 ml, 300 m l ,2 L , 2 . 2 5 L ,
330 ml Various Sizes
500 ml, 1000 ml 500 ml + 100
ml

Worldwide Sprite is ranked as the No. 4 soft drink & is

sold in more than 190 countries In India, Sprite was
launched in year 1999 & today it has grown to be one of
the fastest growing soft drinks, leading the Clear lime
category. Today Sprite is perceived as a youth icon. Why?
With a strong appeal to the youth, Sprite has stood for a
straight forward and honest attitude. Its clear crisp
refreshing taste encourages the today's youth to trust
their instincts, influence them to be true to who they are

Glass PET Can Fountain

500 ml, 1.5 L,
200 ml, 300 Various
2 L, 2.25 L, 330 ml
ml, Sizes
500 ml + 100 ml
and to obey their thirst

44
Internationally, Fanta - The 'orange'
drink of The Coca-Cola Company, is
seen as one of the favorite drinks
since 1940's.

Fanta entered the Indian market in

the year 1993. Over the years Fanta has occupied a
strong market place and is identified as "The Fun
Catalyst". Perceived as a fun youth brand, Fanta stands
for its vibrant colour, tempting taste and tingling bubbles
that not just uplifts feelings but also helps free spirit thus
encouraging one to indulge in the moment. This positive
imagery is associated with happy, cheerful and special

Glass PET Can Fountain

500 ml, 1.5 L,
200 ml, 300 Various
2 L, 2.25 L, 330 ml
ml, Sizes
500 ml + 100 ml
times with friends.

Maaza was
launched in
1976. There was a
drink that offered
the same real taste of fruit juices and was available
throughout the year. In 1993, Maaza was acquired by
Coca-Cola India. Maaza currently dominates the fruit drink
category. Over the years, brand Maaza has become
synonymous with Mango. This has been the result of such
successful campaigns like "Taaza Mango,Maaza Mango"
and "Botal mein Aam, Maaza hain Naam". Consumers

45
regard Maaza as wholesome, natural, fun drink which
delivers the real experience of fruit. The current
advertising of Maaza positions it as an enabler of fun
friendship moments between moms and kids as moms trust
the brand and the kids love its taste. The campaign builds
on the existing equity of the brand and delivers a relevant
emotional benefit to the moms rightly captured in the
tagline "Yaari Dosti Taaza Maaza"

Glass Tetra pack PET Fountain

200 ml, 125 ml,
1000 ml Various Sizes
250 ml 200 ml

Water, a thirst quencher that

refreshes, a life giving force that
washes all the toxins away. A ritual
purifier that cleanses, purifies,
transforms. Water, the most basic
need of life, the very sustenance of
life, a celebration of life itself.

The importance of water can never be understated.

Particularly in a nation such as India where water governs
the lives of the millions, be it as part of everyday rituals
or as the monsoon which gives life to the sub-continent.
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. Water you can trust to be
truly safe and pure.

46
Kinley water comes with the assurance of safety from the
Coca-Cola Company. That is why we introduced Kinley
with reverse-osmosis along with the latest technology to
ensure the purity of our product. That's why we go through
rigorous testing procedures at each and every location
where Kinley is produced. Because we believe that right
to pure, safe drinking water is fundamental.

In the company's journey towards the

vision 'leading the beverage
revolution in India', now even Garam
matlab Coca-Cola. A hot new launch
from Coca-Cola India. Georgia,
quality tea and coffee served from
state of the art vending machines is positioned to tap into
the nation’s biggest beverage category. Georgia, which
promises a great tasting, consistent, hygienic and
affordable cuppa is available in a range of 7 sizzling
flavours, Adrak, Elaichi, Masala and Plain tea
Cappuccino, Mochaccino and Regular coffee.
Georgia is currently in the roll out stage after a successful
launch in Delhi & Kolkata. Georgia aims to become the
consumers preferred choice of hot beverage when he is on
the go; the brand is well on course to achieving its vision.
While Georgia is a mass market offering, Georgia Gold is
the premium brand which caters to the connoisseur. Made
from freshly roasted and ground coffee beans, Georgia
Gold is delicious tasting aroma with the tantalizing aroma
of fresh coffee. Currently available exclusively at
McDonald’s outlets across the country Georgia Gold has
driven coffee sales through the roof. The success of hot
beverages from Georgia Gold has resulted in extension
into the cold category, with the introduction of Ice Tea
and Cold Coffee

47
M I N UT E MAID - A 62 year
success story.
The history of the Minute Maid brand
goes as far back as 1945 when the
Florida Foods Corporation
developed orange juice powder. The
company developed a process that eliminated 80 percent
of the water in orange juice, forming a frozen
concentrates that when reconstituted created orange
juice. They branded it Minute Maid, a name connoting the
convenience and the ease of preparation (In a minute).
Minute Maid thus moved from a powdered concentrate to
the first ever orange juice from concentrate. Minute Maid-
One of the world's largest juice and juice drink brands
over the years, through innovations and unmatched
consumer experience provided in over 60 countries,
Minute Maid brand has clearly become one of the world's
largest juice and juice drink brands. The launch of Minute
Maid Pulpy Orange in India (starting with the south of the
country) is aimed to further extend the leadership of
Coca-Cola in India in the juice drink category.

Available in two PET pack sizes

400 ml and 1 litre and 1.25 litres.

48
CHAPTER - 5

ABOUT PROJECT
49
The work assigned was to analyze and enhance the
market opportunities for Coca Cola in Ghaziabad, by
creating awareness to retailers about the brand value,
profit ratio and to find out the factors which are creating
impediment in its expansion.

Thus project was divided into two parts:-

First Part:-
• Analyze the needs and wants of existing retailers
(customers).
• Find out the problems faced by them while doing
business with Coke.
• 36There reasons of doing business with Coke.
• For this survey on 350 existing outlets was done.

Second Part:-
• Find out the reasons for not doing business with
Coke from new retailers (customers).
• For this survey on 250 new outlets was done.

While doing second part of the survey few new outlets

were opened, OYA refrigerators were sold & Visi -
Coolers were installed.

50
 5.1: DATA COLLECTION:-

Data was collected from different locations of

Ghaziabad as:-

1. Govindpuram
2. Kavi Nagar
3. Rakesh Marg
4. Ghantaghar
5. Dadri Road
6. Gandhi Nagar
7. Mali wada
8. Shastri Nagar

5.2: TYPES OF EXPANSION

Expansion can be done both vertically & horizontally and

for this different questionnaires were prepared for both
existing and new retailers.

5.2.1: Vertically expansion

It means increasing the existing outlets capacity of sales.

There are following techniques used in vertical expansion:

• RED ( Right Execution Daily)

• PJP (Pre Journey Planner)
• Pre Sell

51
5.2.2: Horizontal expansion

It means opening new outlets. It is done to increase the

market share and to increase the visibility of product in
the market which will ultimately lead to higher sales
volume and larger market share.

5 . 3 : H O R I Z O NT A L E X P A N S I O N

5.3.1: Reasons for horizontal expansion

Figure 8: Opportunity to oen new outlets (India).

(Sourse:- AC Neilsen –Retail audit & FMCG track)

Above data shows that Coke is far behind from its

competitors in case of market coverage thus huge
potential for expansion.

52
5.3.2: Benefits of horizontal expansion

• Improves profitability of distributors

• Helps improve route productivity
• Incremental revenue for the business

• Helps in distributing the market demand

• Increase market visibility

5.3.3: Advantage of horizontal expansion over vertical

expansion

Both expansion techniques are meant for increasing sales

volumes. But in horizontal expansion company can earn
more profits by spending less. Let’s see the profit story of
horizontal expansion.

53
Figure 9: Impact of new outlets on business (Source:
HCCBPL, Monthly Circular, June).

54
Figure 10: Impact of new outlets on distributors

55
 (Source: HCCBPL, Monthly Circular, June).

Above tables clearly indicate the importance of opening

new outlets. By doing vertical expansion only growth in
profit was not very effective but because of opening just
200 new outlets sales increased to a large extent. Total
profit margin and return on investment also increased.

5.4: SEVEN CRITERIAS TO FORM A NEW OUTLET

1. Outlet already owns electric chilling equipment of any
type–

This is necessary to open an outlet which much has its

own chilling equipment because initially company cannot
provide a new cooler. So, it’s preferable that he starts his
business with his own chilling equipment and as business
grows company can provide him cooler. Company also
provides OYA refrigerators at reduced priced from market.
(For rural areas Ice Box, Outlets location and daily sales
is kept in mind while giving preference to SGA).

2. Outlet is already selling Pepsi products

This criterion ensures that outlet is suitable for the

business in soft drinks, it has demand for soft drinks and
can also sell Coke products, the only thing required is to
solve the problems and finalize the agreement.

3. Outlet is on the main road or has 2 adjacent roads

The shop must be easily reachable for our salesman, else

it would affect the economies of scale and it will not be a
profitable business to go on with.

56
 4. There are no other outlets selling Soft Drinks within
150 steps in any direction from that outlet

This is done to create particular population cluster at one

point only to prevent the local competition among Coke
outlets.

5. Outlet is listed as part of the list of non-dealers

submitted by Nielsen

AC NIELSEN has provides us a list of potential outlets in

Ghaziabad, if our target outlet is in the list it must be
approached without considering any other criteria.

6. It is an E & D outlet with 5 tables

There are 2 types of E&D outlets,

E &D Type 1 & 2

E&D 1- Does not have a place to sit.

E&D 2- The outlet should have a place to sit.

Criteria no. 6 is valid only for E&D 1

7. It is an outlet stocking branded FMCG products.

(Products in the range of Rs. 20 and above)

This is very important criteria to ensure that the outlet

keeps branded product and can spend some money to
purchase a branded product. The targeted outlet must
meet at least 2 criteria out of 7 mentioned above; if the
outlet does not meet above criterion it will not be a
profitable outlet.

5.5: SEGMENTATION MODEL

Coke’s Markets can be Segmented along 3 Lines- Outlet Volume,
Locality Income & Channel Cluster. 57
x

Grocery: Selling household items

etc.
E & D Type 1: Does not have a place to
sit.
E & D Type 2: The outlet should have a place to sit.
Convenience: Small stores or shops e.g. STD booths

58
Similar grouping
Segmenting
Classifying
ofLOW
G
B
S
OULLET
D Outlets
Consumers
LOCALITY
CHANNEL
OUTLET
KOE VPO
HIGH
MEDIUM basis
CONVENIENCE
TYPE
GROCERY on
Volume
format
basis&Per
SLAB
CLASSIFICATION
&DIAMOND
BRONZE
1500-799
2200-499
SILVER
DGOLD
>800
<200 ofshopper
Income
Outlet ocasion
Grocery: Selling household items
IR
O INCOME
CLUSTER
VOLUME
(PHY C/S) etc.
A
E & D TypeL 1: Does not have a place to
O
MD
N
V sit.
E & D TypeE 2: The outlet should have a
OZ place to sit.
NE
R Small stores or shops e.g. STD booths
Convenience:
D

This model is followed by the company while

segmenting - Type of outlets, volume & their income.

59
5.6: PROCEDURE FOR OPENING A NEW
OUTLET:-

• Find a probable or Dry outlet:

Dry outlet can be defined as an outlet that used to
sell coke before but now it is not activated and
reluctant in doing business with coke. He may be a
competitor’s outlet.

• Scrutinize the outlet:

In this step I had to find the possibility and
suitability of the outlet for keeping the coke
products. There are 7 criterion defined and the outlet
must meet at least two of them. My job is also to
analyze whether selling him coke would be profitable
or not. Also the population cluster and footfalls is
also analyzed and accordingly deal is finalized.

• Targeting the outlet:

After I have analyzed the outlet, I have to approach
the outlet owner. Then I explain him about the
product range of my company. Then I tell him about
the cost, selling prices and schemes given on the
product. I try to convince him that doing business
with coke is very profitable and convenient for him
and it will add more customers and money to his
business i.e. explaining him the profit story.

• Solving the problems:

I also listen to my customer very carefully to his
queries, objections and problems and try to solve
them with the different solutions provided by the
company. Mainly the problem is about SGA (Selling

60
 Good Assets) & agreement for it was done by
analyzing the outlet.

• Insertion of the order:

If he is convinced I inform the salesman give him the
address of new outlet and tell him the stock to be
delivered and end successfully.

My job was also to look after the sales of the outlet &
inform concerning authority if any problem.

5.6.1: Analyzing the outlet

Once the outlet has met the required criteria we have to

target that outlet. Before targeting we have to quickly
analyze the population cluster around the outlet. We have
to analyze income group of people living around the outlet
because these people will be the customer to our retailer.
This helps us making an approach to the outlet also we
have to determine the density of population; this will
determine the footfalls on the outlet. As we know
beverage business depends upon the sales volume so
footfalls and population cluster determination is very
important.

This is done very quickly and product range is offered

accordingly. For example- in urban area MMPO and Maaza
are most selling products, but in rural area small packs
(200ml) are more successful.

61
5.7: STEPS FOR TARGETING THE NEW
RETAILERS-

Before targeting a new outlet (customer), we have to

prepare physically and mentally & following sets were
followed:-

• Take Initiative
• Deal with objections
• Profit Story
• Any other quandary
• Sustain relations

Take Initiative- We personally contact the retailer. As a

representative from Coke we tell about the company, the
project range, about the profit margins, offers, schemes
etc.

Deal with objections- Here retailer puts his objections

and we have to tackle them very carefully, some
common objections raised are as:-

1-Your Business is NOT Very money-spinning?

Answer-
• Our products have Good Margin in the range of 7% -
15%, higher than most of the products you sell.

• Our products are well known and have a faster rotation

which will result in higher earnings for you.

• We have a wide range of product to offer which will

help you cater to larger number of customers.

• We ensure business round the year by activating your

outlet and product promotions.

62
2- The nearby outlet is selling Soft drink. Why should I
sell?

Answer-
• Would you not like to make more profits?
• Our product is usually purchased on impulse and can
be bought along with other products you sell.
• There are products sold in nearby outlet that is
available in your outlet as well. So why not soft
drinks.

3-How will you service my outlet? Will I get stocks I want?

Answer-
• We have a trained salesman who services outlets in
your area. He will visit your outlet twice in a week.
• Our products have shelf life so we would take extra
care so as not to supply you more stocks.
• Our superior distribution system and processes will
ensure you to get the required stocks in time.

63
Profit Story- We explain to the outlet the profit story; we
keep in mind that investment should be told on daily basis
and profits in long term.

Example- Investment of Rs. 910 will add more than Rs.

16,000 to the yearly profit of the retailer if he sells only 2
packs of 2lts soft drink (9*2+2 free) daily. (As C.P is Rs.
455 & S.P is Rs. 495 for 2 lt. pack so, profit is Rs. 40 on 1
pack so, on 2 it will be Rs, 80 Per day i.e. Rs. 2,400
/month and for peek season (3 months- April, May & June
in which sale is suppose to be 50% of estimated yearly
sales) the profit will be Rs. 2400*3= Rs. 7,200 & Rs.
14,400 for whole year (Rs. 7,200 for next 9 months.)
Substrate electricity bill (Rs. 8 per unit, approx daily Rs.
16 so yearly 16*365 = Rs. 5,840.
Rs. 14,400 (Profit) – Rs. 5,840 (Electricity bill) + Rs.
7,920 (Discount as free 2 600ml bottles with 2 packs, so
profit = Rs. 44 per day, Rs 1,320 per month, for peek
season Rs. 3960 (Rs. 1320*3) & for whole year (Rs. 3,960
+ Rs. 3,960 (for next 9 months)) = Rs. 7,920) = Rs.
16,480

This amount of profit is on only 2 2lt packs & it will surely

increase if he sells complete product range.

Any other quandary- If the retailers are having any

problem we provide them with best optimal solution.
Example- If he doesn’t have display item we will provide
him with display racks, hangers, wall paintings etc.

64
Sustain relations- We assure him the good supply of
stock and good service quality that will be provided by the
company. We take his contact no. and address for delivery
of goods and for further references.

5.8: PARAPHERNALIA USED:

1. Profit story (P 46)

2. The Sales presenter (Appendix 3).
It is the most important tool, as it contains all the
information related to different models, activation
standards, shelf order standards, activation
standards, brand order, cooler specifications,
energy management system & profit stories.

3. Schemes & discounts.

4. Display coolers (VISI-COOLER).
5. Point of sale material (POSM).
6. Refrigerators (OYA refrigerators at discounted rate,
thus becomes retailer’s property, OYA – Own Your
Assets).
7. Display tools (hangers, racks, pole header, posters,
etc, (In Appendix 3)
8. Ice box
9. For some retailers or areas before approaching we
have to be well prepared & tackle their problems wisely.
10. Follow up- It plays a very important role of sales
promotion as we observe in the market that some retailers
were confused, and they needed time to decide, it’s a
responsibility to follow them up properly. We approach
them again and again and solve their problem each time.
11. Questionnaires (Appendix 1).
12. Tracker for new & existing outlets (Appendix 2).

65
5 . 9 : I N T A N G I BL E E L E M E N T

In this element we make sure the availability of the

product to the retailer, to do this we have to inform the
respective salesman of that particular area about the
outlets location, and thus stock required. I also make sure
that the product must be delivered on time at the outlet.

To increase sales on the existing outlet or new outlets we

have to adopt vertical expansion strategy (VMS), IN VMS
there are 3 tools used,

• Pre sell- By this demand of the stock by a

particular retailer is calculated and required stock
is provided at the outlet, within time.
• PJP (PRE JOURNEY PLANNER) –We make a time
schedule for approaching the outlets for delivering
the product.
• R.E.D- Right Execution Daily is the survey method
that company started earlier. For the survey of
R.E.D., Company had hired the people from A.C.
NIELSON one of the best survey company. This
survey gets done once or twice a month. R.E.D is the
set of norms divided into outlet wise.

5.9.1: About the R.E.D survey

The survey has being conducted to check the cooler

management, availability of products, displays etc. in
short to cross check ground level work of related
employees of Coke.

66
CHAPTER - 6

67
 INTRODUCTION TO STUDY

6.1: PURPOSE OF THE STUDY

The study was carried to gain an insight about the

perception of the retailers about the company and to study
various factors which directly or indirectly influence the
sale of the company.

6 . 2 : O B J E C T I V E S O F T H E ST U D Y

• To identify the needs and wants of both the retailers

and dealers and how well are they being managed by
the company’s anxious authorities.
• To find out various reasons which are creating
stumbling block in market expansion.
• To identify the wakefulness of the brand and the
company’s products in the market.
• To find out the gratification level of customers and
problems faced while doing business with Coke.

6.3: WORK ASSIGNED

The work assigned was to analyze and enhance the

market opportunities for Coca Cola in Ghaziabad, by
creating awareness to retailers about the brand value,
profit ratio and to find out the factors which are creating
hurdle in its expansion.

68
6.4: OBJECTIVES OF THE WORK

6.4.1: Primary Objectives:

The prime objective was to analyze and enhance the

market opportunities for Coca Cola in Ghaziabad.

6.4.2: Secondary Objectives:

• To find the reasons from the retailers for not selling

Coke products.
• To create awareness among new retailers about the
company, brand value, product line & profit ratio.
• To find out the reasons behind their unawareness.
• To find out new ways to make them aware about
different offers.
• To maximize the market share of Coke in Ghaziabad
region by making agreements with new dealers &
retailers.
• Ratio of exclusive type of outlets selling different
brands.
• Try to form & convert existing outlets as Coke
Monopolists by explaining them the profit story and
providing them with special discounts & schemes.
• To formulate the strategies for targeting the retailers
effectively.

69
 CHAPTER - 7

RESEARCH METHODOLOGY

Type of research: Exploratory and descriptive Research

Type of data collected:
1. Primary data
2. Secondary data

70
• Research instrument: Printed Questionnaire was
used as the research instrument to collect the
required information.
• Area of surveys: The survey was conducted in
different location of Ghaziabad city.

1. Primary data collection methods–

• General observation method-

• The retailers were observed to have an insight about
the mindset and preference for a particular brand.

• Personal interaction method-

I made interactions with some retailers during market
survey, who want to give some extra information
other than questionnaire and who were busy and not
ready to fill the questionnaire. This was conducted
without the help of any questionnaire. The objective
was to draw a general understanding about their
problems, performance of the distributer, their
preferences and other useful information. This
technique helped to clear doubts arising due to
observation method.

71
• Questionnaire method-
Questionnaire was divided in two parts. First part
was for exiting retailers (customers). The other part
was for new retailers. The basic aim of both was to
analyze the psychology, need & wants of retailers.

2. Secondary data collection methods-

Secondary data was collected from various websites
– Coca Cola India, Beverage Marketing Corporation,
Canadean, Beverage Digest, Myenjoyzone, from
company records and data of AC Neilson’s research
etc. to have a comprehensive knowledge about the
beverage industry and Hindustan Coca Cola
Beverages Pvt. Ltd.

Time dimension:

The time dimension of the study was approximately 8

weeks as provided by the institute guidelines during
summer training period.

72
Sampling unit:

The retailers of Grocery shop, E & D, Convenience

shop, Medicine store and Juice corners was selected
from different places of Ghaziabad.

• Sampling size: 550 Outlets.

• Sampling procedure: As Coke has mainly

three types of modules of customers as:-
Grocery store, Convenience store & E&D with
different grades so sampling size was divided
according to area, type of store & VPO of the
store.

• Sampling method: Data were collected by

retailer survey. The retailers were directly
contacted and interviewed at their retail
counter.

73
 CHAPTER - 8

FINDINGS & ANALYSIS

STATUS OF OUTLETS COVERED FOR SAMPLE

SIZE

74
Out of sample size of 600 - old retailers were 350 and new were
retailers 250.

8.1: QUESTIONNAIRE FOR EXISTING RETAILERS

Q1. Name of Outlet:

Q2. Location:

For first part of survey(existing retailers) location was

decided according to sales; (data from Hindustan Soft
Drinks) area having more sales was given more part of
sample size for existing outlets, in order to understand
the psychology of existing outlets as shown in Figure 9.

Q3. Life span of business:

Q4. Total sale per day:

Q5. Criteria no.’s (7 criteria’s for a new outlet) of the

retailer:

Q6. Type of Outlet:

Each route under HSD was analyzed with delivery

van & complete knowledge about the area was taken
from respective market developer of each area. So,
distribution of sample size for type of outlets

75
 (existing) was according to the route plan of delivery
vans as shown in clear in Figure 10.

As clear from graph of existing outlets the most of the

outlets we approached are Grocery stores, E & Outlets
and Convenience stores. It makes clear that Coke is
having very less business with Medical stores & Juice
corners. So, this part of market needs more attention.
There is huge potential is this area so must be targeted
effectively.

E & D existing outlets covered were 71 as 53 were E&D 1

& 18 E&D 2.

It signifies that company is lacking in sales for E&D 2.

Q7. Deal with beverages, packaged juices and packaged

water:

Q8. If yes, which brands?

Q9. Retailers VPO (Volume Per Outlet)

Q10. How often do u order?

Q11. Reasons for doing business with Coke

Q12. Problems faced while doing business with Coke.

76
➢ C r o s s t a b u l a t i o n o f Q 2 ( L o c a t i o n ) & Q 4 ( Sa l e p e r
day)

Sale per day of Coke (Rs)

S. Location & < 251 - 501 - 751 - 1001 >
250 500 750 1000 1250 1251 Total
No No.of outlets
Govindpuram
3.37 10.1 22.47 23.6 25.8 14.61 100
1. (89)
1 0 4
Kavi nagar %
2.66 12 21.33 10.6 37.3 16.01 100
2. (75)
Wi 7 3
Rakesh Marg
th 9.68 41.9 14.51 9.68 17.7 6.45 100
3. (62)
4 4
Ghantaghar
27.9 51.1 16.30 0 4.64 0 100
4. (43)
0 6
Dadri Road In
10 23.3 16.30 0 23.3 26.67 100
5. (30)
3 3
Gandhi Nagar Th

6. (10) e 40 10 30 0 20 0 100
Mali wada

77
7. (19) 21.0 31.5 21.05 15.7 10.5 0 100
5 8 9 3
Lo
ShastriNagar
ca 36.3 31.8 0 22.7 9.09 0 100
8. (22)
tio 6 2 3

Total (% / 100 * No. for (appo

each one & them of all) 42 86 62 41 77 34 x)350

Table 1: Cross tabulation of Location & Sale of Coke.

INTERPRETATION

Above table shows the relationship between the average

sales per day and the location & No. of outlets. In my
sample of 350 existing outlets, I found that all the outlets
are not evenly distributed in case of sales in a particular
area and income level of different retailers of different
areas varies a lot. It is also clear that sale per day of
Coke in maximum outlets covered in our area is between
Rs.1001 – 1250.

78
 Reasons for doing business with Coke
S. Type of
No Outlets B BS HD GS HP GQ AO
Grocery
79.5 29.5 84.5 54.9 44.3 78.8 47.8
1. Stores(142)
0 8 0 3 6 7 9
%
Medical
16.6 0 33.3 16.6 0 0 0
2. Stores(6)
Withi 7 3 7
E & D
n
85.1 24.3 48.6 74.3 29.7 78.3 66.2
3. Outlets(71)
4 2 5 2 3 8 1
Convenience Type
75 38.2 88.2 57.8 29.6 76.5 60.9
4. store(128)
8 8 0 9 6 3
Juice Of
33.3 0 0 0 0 0 0
5. Corners(3)
3
Busi
ness
Total (% / 100 * Total
No. for each one, then 274 109 271 208 123 268 198
sum of all).

➢ Cross tabulation of Q6 (Type of outlet) & Q11

(Reasons for doing business with Coke).

Table 2: Cross tabulation of Type of outlets & Reasons for

doing business with Coke.

v alue, BS – Better sc hem e, HD – High dem and, GS – Good Supply , HP – High profit, GS – Good Serv ic e Qualit

79
80
 INTERPRETATION

From this table it is clear that maximum retailers want to

do business with Coke because of Brand value, High
demand and Good service quality. It also shows that:-

• The major reasons for keeping Coca Cola products

by grocery store are brand value, high demand and
good service quality, but less population is
satisfied with schemes and discounts provided by
company. After analysing market it was found that
Pepsi is providing more schemes and discounts as
compare to Coke.

• Sale of products in Medical stores is very less so

huge potential is there. Company should make
effective schemes to motivate them to sell their
products.

• The major reasons for selling Coke products by E & D

outlets are Brand value, Demand and Good supply
quality.

But after analyzing the E & D outlets E & D type

1 are 53 and type 2 only 21. E & D type 2
outlets were selling more Pepsi as company is
providing them selling assets like chairs,
tables, racks etc

81
• After studying Convenience store market it came to
know that this sector was most satisfied and they are
enjoying lot of reasons for doing business with Coke.

• If discussing Juice corners, Coke is having very less

reach to them. There is a major gap which needs to
be bridged.

In Ghaziabad this is sector is almost untapped so, lot of

potential to increase business is there.

82
 ➢ Cross tabulation of Q2 (Location) &
Q12 (Problems faced while doing

Problems faced while doing business with Avg.

Coke (Sum
S. Location of
of
N outlets TF SM SA DO CI DM AO all /
o.
No.)
Govindpuram
1. (89) 25.84 7.87 14.60 62.92 48.31 70.78 30.33 2.93

Kavi nagar %
2. (75) 22.67 8 18.67 25.33 46.67 30.67 46.67 2.65

Rakesh Marg
(62) Wit 40.32 27.4 11.29 37.09 61.29 58.06 61.29 4.79
3.
h
Ghantaghar
4. (43) 44.18 18.6 6.97 34.88 62.79 13.95 37.20 5.08
In
Dadri Road
5. (30) 6.67 3.33 0 23.33 23.33 70 56.67 6.11
The
Gandhi
6. Nagar (10) 0 0 40 0 50 40 20 15
Loc
Nehru Marg
atio
7. (19) 21.05 10.5 0 31.57 47.36 0 57.89 8.86
n
Shastri
8. Nagar(22) 27.27 0 13.63 31.81 18.18 0 40.90 6
Total (% / 100 * No. fo
reach one & them of all) 96 41 71 133 168 144 155

business with Coke).

Table 3: Cross tabulation of Location & Problems faces while doing
business with Coke

INTERPRETATION

1. From the above cross tabulation it is clear that Gandhi

Nagar is facing more problems while doing business
with Coke followed by Nehru Marg & Dadri
83
2. It also reveals the fact that most common problem is,
complete information & daily schemes. According to
retailers delivery men were not providing them the
complete information.

3. As distribution is indirect and sometimes there is

shortage from plant too, daily in orders becomes
trouble for retailers.

4. As clear from the table that most common problem

faced by retailers is, complete information & daily
schemes. The reasons were that as schemes were
changing daily and no written notice comes from
concerned authorities they have no choice other than to
ask delivery man about the schemes & have to believe
on him up to a great extend.

Any other problems are as:-

• Retailers want credit facilities.

• Mode of payment.

• Service of Visi coolers.

• Size of cooler not in proper ratio with sales.

• Busted Bottle replacement conditions.

• B.T.C (Below the crown) offers:-

Retailers were not satisfied with the B.T.C offers, as
retailer has to pay on spot its customers the discount
under B.T.C and company was taking lot of time to
pay them back and even sometimes they were not

84
 accepted by company as they come with short life
period. Loss due to delay in collecting and
submitting those crowns in company which is the
duty of sales man has to be unwillingly bear by the
retailer. Problem become terrible when a customer
demands a gift mentioned under B.T.C.

• Policies made for Schemes and discounts:-

While doing first part of my survey that was to analyze
existing retailers an important fact came to my notice
that schemes and discounts were not fixed i.e. they
change frequently and sales man were taking undue
advantage of this policy.

• Timing and frequency of van:-

It was most common problem of retailers of Ghantaghar
and Rakesh Marg. The reason was that delivery vans of
these two areas were of less capacity and the area is
also congested. These factors become problem for the
delivery men to reach every retailer in same day.

85
 But if we discuses Shastri Nagar and Govindpuram,
these two areas are largest areas under Hindustan Soft
Drinks (HSD), thus becomes difficult for the delivery
van to cover whole area in one day.
Moreover problems become worse when demand of soft
drinks is high and delivery van becomes empty before
covering the whole area.

• Few retailers did not also like the behaviour of Sales

man.

Depth of problems in different areas. Figure 13

86
8.2: QUESTIONNAIRE FOR NEW RETAILERS

Q1. Name of Outlet:

Q2. Location:

Q3. Life span of business:

Q4. Total sale per day:

Q5. Criteria no’s

Q6. Type of Outlet

Q7. Reasons for not doing business with Coke?

Suggestions, if any:-

87
➢ Findings - Q2 & Q6 - Location & Type of outlet.

For distribution of the sample size for new location & new
outlets it was decided that the area & type of outlets
which were giving less sales must be having more part of
sample size, in order to smudge the reasons for less sales
in particular area and type of outlet.

88
 Cross tabulation of Q6 (Type of outlet) & Q7
( R e a s o n s f o r n o t d o i n g b u s i n e s s w i t h Co k e ) .

Reasons for not doing business with Coke

S. Type of
Outlet NA LD P CP C DS L N AO
N
o
Grocery
Store (42) % 35.7 0 28.5 64.2 32.4 59.5 0 0 19.0
1.
1 7 9 8 2 5
Medical
Wit
Store (70) 44.2 77.1 42.8 40 38.5 4.28 0 44.2 0
2. h
9 4 6 7 9
E & D
In
Outlets (52) 53.8 0 21.1 32.6 0 63.4 0 0 23.0
3.
5 5 9 6 7
Convenience Typ
Stores (41) e 29.2 0 34.1 19.5 0 53.6 0 0 14.6
4.
Of 7 5 1 7 3
Juice
Corners(45) 22.2 62.2 37.7 82.2 15.5 6.67 28.8 73.3 51.1
5. Bus
ines 2 2 8 2 6 9 3 1

s
Total (% / 100 * Total
No. of outlets, then 96 82 84 117 48 86 13 64 49
sum of all).

Table 4: Cross tabulation of Type of outlets & Reasons for not

doing business with Coke

Dem and, P – Profitability , CP – Company Polic ies , C – Competition from nearby outlet, DS – Dis tribution Sy s tem

89
 INTERPRETATION

The reasons for not doing business with Coke were

segmented into 9 major factors. The major reason was
that retailers were not satisfied with company policies as
clear from the table too. A major factor is:-

• Selling Goods Assets (SGA).

It means those assets which help a retailer to sell goods.
As refrigerator was an important SGA for a retailer and
every retailer was demanding it, so it was becoming
impossible for the company to satisfy need of every
retailer.

• Second major factor was company never approached

and according to company too, they have only covered
13% FMCG outlets, while FMCG giant HUL has covered
82% FMCG outlets. Thus lot of scope for company to
expand business.

• Thirdly in Ghaziabad distribution is indirect

(manufacturer to dealer then to market), and retailers
have commented a lot on this factor and effect of this is
shown in table too.

• Fourthly Coke is providing less commission, schemes

and discounts as compare to its follower Pepsi and
retailers are only interested in profit.

90
• Non suitability was another factor as medical stores and
juice corners were resisting for doing business with
Coke. Company need to make special policies to tab this
untouched market.

• Any other factors include:-

• Providing selling good assets (S.G.A) to

retailers at the initial stage was impossible for
the company so to satisfy needs of every
retailer, company gives the priority level to
them, which depends on location, sale of
products etc.

• The major reason for not entering in soft drink

sector by grocery store is that they find lot of
problem when customers take R.G.B bottles
and don’t return them back.

• Lack of knowledge about the product line.

91
 Life span of business (Years)
S. Location of Total
No outlets <1 1-3 >3-5 >5-7 >7-9 >9
Govindpuram %
1. (20) 0 20 35 30 0 15 100
Kavi Nagar
2. (23) 4.34 30.43 17.39 0 0 0 100
With
Rakesh Marg
3. (25) 0 12 36 52 0 0 100
Ghantaghar
4. (27) 0 3.7 44.44 51.85 0 0 100
Dadri Road
In
5. (39) 23.07 19.23 11.53 46.15 0 0 100
Gandhi
6. Nagar (33) 0 9.09 21.21 39.39 30.30 0 100
Nehru Marg
7. (37) The 2.70 40.54 45.94 0 0 10.81 100
Shastri
8. Nagar (46) 28.26 45.65 13.04 0 13.04 0 100

Loca
tion
Total (% / 100 * Total (appr
No. of outlets, then 24 61 67 64 16 4 250

sum of all).

Cross tabulation of Q2 (Location) & Q3 (Life

span of business).

Table 5: Cross tabulation of Location & Life span of business.

92
 INTERPRETATION

It is clear that there is huge potential for the company to

expand its business as lot of market is intact. Company
should first find out the reasons why this market remain
untouched and then extend its product line to these
untouched retailers by providing better guidance to sales
people and by providing lucrative schemes to these
retailers.

93
 OTHER GENERAL FINDINGS

• Pricing of products as - 200 ml for Rs. 8 & 600 ml for Rs.

22. It becomes difficult for the retailer to pay back the
balance money.

• Competition with local drink like- Fruit juice, lemon water,

sharbat, lassi & tea.

• Competition with local drink brands like- Jayanti, Lijjet,

Prem ji in small areas.
• Most of retailers are having problem with timing and
frequency of van. Dealers should increase the frequency
or add more vehicles were required.

• Impurity of Coke Visi coolers.

• Brand order is not maintained in coolers.

• The marketing strategy of Coca-Cola is better than its
main competitor.

• The sales promotion techniques like- discount to

monopoly retailers & schemes on products is better than
the competitors.
• The market share of Coke products is higher than the
other products.
• Thums-up is the leading brand of Coca-Cola in different
regions.
• Sale of a product is largely based on display.
• Company investing more focus now in retailers of rural
areas.

• Aggressive advertising campaigns of Coca-Cola in

Ghaziabad helped it lot to increase its sales.

• I found the proper display of products in racks & in

coolers.
• Sales of Coke are increasingly rapidly in Ghaziabad
market where I do work study mostly.
94
• Retailers play an important role while selling products as
they can divert the desire of a customer by providing
same thing of other brands.
• Found many good outlets that want Visi coolers from
coca-cola.
• Also found dead & useless coolers.
• Some retailers complain about the service & repair of
coolers.
• Retailers want if company want to change schemes daily
delivery people should come with written orders from
concerned authorities as they fell they are cheated.
• The most popular flavour in the market is Thums Up.
• From the Coca-Cola products Thums Up and the
Pepsi products Dew is the highest selling in the
market.
• Coca-cola is the market leader in overall market.
• In the case of the packaged drinking water Aquafina
(Pepsi) is selling more than Kinley (Coke).
• I have found that a retailer gives more preference to
the Coca-Cola products like Thums-Up, Mazaa,
Sprite, Limca and Fanta.
• Minute Maid, pulpy orange is sellable more in Kavi
Nagar market.
• If discussing schemes & discounts, Pepsi is
providing more schemes than the Coca-Cola.
• Sales have increased after locating Visi cooler
outside of outlet.
• The companies’ new concept pre-sale is welcomed in
market
• Few retailers do not get the company’s actual
scheme.
• Products are sold out of assigned areas by
distributors in order to increase sales.
• If retailers complaints regarding discounting & trade
scheme then they are not responded properly.

95
• There is a communication gap in distribution channel
so retailers are not getting advantages of
discounting & trade scheme.

Exclusive outlets found during survey on

existing outlets:
Figure 16: Exclusive outlets

96
Different types of outlets selling different
brands

Figure 17: Different types of outlets selling different brands

97
CHAPTER - 9

98
 LIMITATIONS, SUGGESTIONS
& CONCLUSION

9.1: LIMITATIONS

• The study was restricted to 8 regions of Ghaziabad only,

with sample size of 550 (350 new outlets & 200 new
outlets) so, the interpretations & findings are accordingly
to it only.
• The time period of 2 months was the major limitation.
• Due to the financial and time constraints the study was
not able to include more retailers.
• To convince the retailer for a proper interviewing process
was also difficult.
• Retailers some time give wrong data.
• The reluctance on the part of the retailers was also a
major setback.
• The analysis of project was based on observations and
interpretation on the basis of sample survey.
• Another limitation could be lack of knowledge. Being a
student I undertake this project as a learning experience.
I have made many mistakes and then learned from them. I
have tried my best to be as authentic and as accurate as
possible in the research analysis taking the help of my
project mentor on relevant primary and secondary data.

• The secondary data was not easily available.

• Limited knowledge of the researcher in the field of

research may lead to interpretation errors.

• Certain retailers were not comfortable divulging the

figures and data, as they want to keep it confidential.
• The respondents may be based or influence by other
factor.
99
 • A busy schedule of dealers/retailers had made my
collation of information very difficult.
• The projection is purely based on verbal meetings and
may be influenced by unprecedented factors.
• Non-co-operative behaviour of respondent was a big
problem in this survey & it is the important fact which
should be taken into consideration.
• The minor concept & techniques at the marketing
management are used significant in the project concern.
• The research was based on primary collection of data so
there may be chances of human error and biasness.

9.2: SUGGESTIONS

• The company should measure retailers’ satisfaction

regularly.

• Company can increase the sales if it will consider more on

retailers, their suggestions or complaints about service
and product so that necessary actions can be taken.

• Review meeting should be often held so that the working

pattern of the sales people can be checked and improved
if needed.

• Company representatives should visit retailers and should

make a long-term liaison with retailers so that they can
push the product.
• Since brand value of Coke & expectation of retailers from
this brand is high, as the brand image shows their quality
is supervene so the company should also take feedback
time to time. By this they can maintain their brand loyalty
in their customers.

10
0
• Distributers should be convinced to pass the incentives to
the retailers so that they are motivated to promote this
brand.
• Increase the number of dealers and retailers as this will
help in making high sales volume.
• Cash discount should be given &it should be competitive
and luring.
• Try to maintain the good image of the monopoly outlets in
market by developing the image i.e. by glow boards, sign
boards, and point of sale material (P.O.S.M) and by
providing good quality services. By this the monopoly of
the retailer will continue and it will promote other retailers
to adopt Coke monopoly.
• Company should also attain to small outlets so that there
sales can increase.
• Company should diverse its business in related parts of
F.M.C.G sector like-Ice creams, butter & chocolates as
company has well established systems in every.
• Now company should launch new taste of soft drinks like
recently launched Minute Maid & also launched new
product in another flavours.
• Company representatives should search new areas for
increase in sales.
• In winter Season company gives more discount & schemes
to the retailers so they sell more our product.
• Company must make aggressive & new strategies to fight
with major competitors and local cold drinks brands.
• Company should promote new dealers.
• If possible try to give more discounts and schemes were
ever required.
• Supply and distribution system should improve in the
areas like Ghantaghar and Rakesh Marg.
• The company should work out in their complaints
regarding to the Visi cooler.
• Company should give proper schemes to the outlet.

10
1
• The refrigerator purity should be given the priority.
• Overall services should be improved for getting more
sales and to continue to be the market leader.
• Proper usage of P.O.S.M material.
• Company should take the problem of “cut off rates
seriously”.
• Coca-Cola should be written on florescent boards
displaying location and distances on road.
• Illegal distribution done by some distributors should be
minimized.

10
2
9.3: CONCLUSION

Everything in this world is made to utilize properly

but it should be reach at the proper person or to the
proper utilized areas. Otherwise the value added to
those things became in vein.

As there is a proverb:-

“Far from eye, far from heart”

Thus marketing role plays a very important role in

achieving the objectives of a company. Undoubtly,
value utility is created by the manufacture of product
or service but time and place utilities are created by
marketing role. According to Drucker, “Both the
market and the distribution channels are often
more crucial than the product”.
They are primary: the product is secondary. In an
economy like that of India, where marginal shortages
can lead to disproportion, distortion in prices, a
dependable and efficient distribution system is very
much essential. The distribution system creates a
value added to all most all products.

All from the above study not withstanding its

restricting efforts Pepsi is still far away with its great
competitor like Coke.

10
3
 CHAPTER - 10

SIGNIFICANCE OF STUDY

10.1: To the researcher:

• It gave a chance to use the conceptual knowledge in

actual environment and prepares the researcher to use
the knowledge for better in his future endeavours.

10
4
• It helped in the assessing the factors, which influenced
the retailers purchasing and selling products to the
consumer from Coca-Cola.
• The study is essential for the researcher in partial
fulfilment of PGDM curriculum. The study gave the
researcher the experiences to conduct survey.

10.2: To the company:

Cold drinks companies are facing a great competition

nowadays. Consumers are very much aware and curious
about safely products, services, brands and other
upcoming products. This study provides an insight to the
company that what kind of strategies must be adopted in
order to sell more products to consumers and also
satisfying them.

10.3: To the others:

The study gave an insight into various aspects of the

Beverage companies, discussed in this study. One can
easily come to know about what is happening in Beverage
companies in the current environment. How they make
attraction of Retailers & consumer mind.

10
5
 CHAPTER - 11

ACHIEVEMNTS IN TERMS OF SALES

FOR THE COMPANY.

In two months of summer training work I receive an

exclusive live project work. While doing survey we were
told to expand market share of Coke in area under the
Hindustan soft Drink (HSD) the leading distributer of coca
cola in Ghaziabad. Their previous achieved sales were
3.20 lakh’s cases per year.
A current target average sale for them by company is 3.5
lakh’s cases.

1 1 . 1 : M O D E L S A N D W O R K I N G F O RM A T S

10
6
 These were made clear to us before working on this live
project and they are as:-

• SEGMENTATION MODEL: - Appendix 3

• PITA MODEL: - Population (number of shoppers or

consumers in given universe) + Incidence (% of population
that buy our product) + Transaction size (amount in
volume bought per transaction) + Avg. Profit (amount of
profit in value per transaction).
Appendix 3

• Working format for new and existing outlets.

Appendix 2
Various questions were asked from both new and existing
retailers as mentioned in format.

11.2: THE 3A’S STRATEGY WAS FOLLOWED:-

This strategy is for increasing numbers of retailers and is

based on the belief that consumers will buy our products it
they are Available, Affordable and Acceptable.

The 3A’s is Coca-Cola underlying strategy for meeting its

goal to reach increasing numbers of consumer’s. How
does Coke position its limited resources to help meet its
best. A brief explanation of these 3A’s is as follow:-

Availability:-
Some of the ways in which the Coca-Cola Company hopes
to increase availability of its product include improved or
innovative packaging, dispensing systems, distributions
system, and marketing.

10
7
 Affordability:-
The ways to address affordability include pricing
decisions, as well as resource management. To make its
product available at a price affordable to the consumer.
Continually processes more efficient and therefore more
cost-effective.

Acceptability:-
Making Coke brand and its product line the beverage
choice for any occasions depends on a variety of
strategies to reach the target audience. The common
strategies bespoke to effect acceptability were though
sponsorships, promotion youth market activities,
community programs, and other activates.
11.3: WORKING METHODOLOGY

11.3.1: Route visit:-

• We visited the routs with the distributer’s vehicle where

the distributer supplies the products.
• I observed the display norms for outlets in all route &
each type of outlet.
• Every morning I went to one corresponding route &
observed all techniques of selling product to retailers by
coca-cola salesman & also try to know the mentality of the
consumers and retailers.
• I visited all routes under HSD with delivery man and
market developers of respective areas.
• With this work I take interview retailers ask them about
OYA refrigerators, visi coolers & display items.

11.4: FOCUS ON AVAILABILITY OF PRODUCTS IN

OUTLET.

10
8
There is big difference between the availability of
products in market & outlets. Coca-Cola want that their
product displayed in each outlet in market so, it is
important that the product first available in market after
than it put on outlets.

10
9
 11.5: FOCUS ON VISIBILTY OF COKE PRODUCTS
IN OUTLETS.

• The aim of coca-cola is that its product should be visible

for the customers so company gives to retailers racks so
many display items.

• Now days the company is giving Visi coolers to

retailers for visible their chilled product in market for
more sales.

• Extra focus was given on monopoly outlets and Pre

selling concept.

11.6: ACHIEVEMENTS.

I opened 27 new outlets, installed 4 OYA refrigerators

(Own Your Assets) appendix 4, installed 49 Visi coolers
(in existing & new outlets) and upgraded refrigerators of 7
outlets.

STATUS, E = Existing, N = New. *

Where cooler size was upgraded.
OYA = Own Your Assets (Refrigerators sold by
collecting draft).

11
0
 DADRI ROAD

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Baba Hotel Lohai mandi E 9

2. Shiv Kiryana Store Chaprola E 9
3. Chawal Mill, Canteen Chaprola E 30
4. Goyal Provisional Lohai Mandi N 9
Store
5. Anju Lal kuwa N 9
6. Anupurana Lal kuwa E 20*
7. Sawati Store Lal kuwa E 20
8. Samtal -1 Dadri road E 30*
9. Lavish General Store Chaprola E 9
10. Boby General Store Girdarpur N 9
11. Rakesh Kiryana Lal Kuwa N OYA

GOVINDPURAM

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Sachin Book Depo Indergadi E 20

2. Durga Confectionary Gangapuram E 30*
3. Muskan Confictionary Gangapuram N 30
4. Santosh Dept. Store Gangapuram N 9
5. Akg College (Boys Govindpuram E 9
Hostel)
6. Rainbow Harsava N 20
7. Singhal Sweets Govindpuram E 20
8. Puja Departmental Govindpuram E 20
Store
9. Koshik Medicoach Govindpuram N 9
10. Laxmi Prov. Store Govindpuram N OYA

11
1
 GANDHI NAGAR

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Snow Bell Ice Gandhi Nagar N 20

Point
2. Hind Super Store Gandhi Nagar E 20
3. Dolphin Store Mms College E 30*
4. Raju Sweets Tehsil N 9
5. Babar Sweets Tehsil E 9
6. Raj Kumar Tea Tehsil N 9
Stall
7. Yadav Sweets Tehsil N 20

KAVI NAGAR

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Goyal F Block E 9
2. Archna Cosmetic E Block, Nagar N 9
Nigam
3. Rohi Prov. Store K Block, Shiv N 9
Mandir
4. Setty Electronics C Block N 20
5. Gandhi F Block E 9
Communication
6. Bala Ji Cold Drink Hapur Road N _

M AL I W A D A

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Kwality Store Mali Wada E 20

2. Pavitra Mali Wada N 9
3. New Dharm Dairy Nehru Nagar N 9

11
2
 SHASTRI NAGAR

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Good Morning Shastri Nagar E 9

2. Ishu Confectionary Shastri Nagar E 9
3. Shubham Prov. Mahindra Enclave E 9
Store
4. Sona Prov. Store Mahindra Enclave N 9
5. A.K Confectionary Main Road E 9
6. Lalit Pan Shastri Nagar E 20*
7. Shivam Mahindra Enclave E 30*
8. Chodhary Dept. Shastri Nagar E` 30*
Store
9. Vandhna Prov. Mahindra Enclave N OYA
Store
10. Tirupati Balaji Mahindra Enclave N OYA

RAKESH MARG

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Vidatri Kendra Ashok Nagar E 9

2. Kamak Thok Vikreta Nehru Nagar N 9
3. Gova Confictionary Ashok Nagar E 9
4. Chacha Dish Ashok Nagar N 9
5. Gorav Prov. Store Rakesh Marg N 20

11
3
 GANTAGARH

S. NO. NAME OF OUTLET LOCATION STATUS SIZE

1. Fardeen Ghantaghar E 9
Confectionary
2. Balaji Food Point Ghantaghar N 9
3. Fine Chicken Point Near Manohar E 20
Cinema
4. Prince Beauty Corner Ghantaghar N 9

11
4
11.6: SOME IMPORTANT POINTS

Benefits of installing a Visi cooler:-

• Attractive presentation of products.

• Consumer’s connivances easier access to the product.
• Increase in sales and income. When consumer see the
product he willing to buy it.
• It fills the consumers want & willingness.
• The salespersons easily come to knows that what is in the
cooler and what would be the demand of the retailer.

Benefits of install a cooler outside the outlet:-

• Larger income. More consumers will buy beverages from

shop. JO DIKTA HAI WHO BIKHTA HAI.
• Increase in selling space.
• Outside cooler arouses more consumers’ interest and
increase sales through good beverage exposure.
• Outside outlet, it enlarges the amount of consumers
visiting outlets.
• Easier access to chilled product triggers the consumers
purchase impulse.
• Effective use of shop space.
• Attractive and convenient form of beverage presentation.
• Complimentary installation and services.

11
5
 Cooler installation process:-

Company set the coolers in a systematic way the way is

following.
• To examine the prime position of Visi cooler outside the
outlet.

• Night cover for the cooler.

• After establishment of the guarder than cooler set

• When cooler has been set in guarder than the price
communication on cooler tray & set the trays properly in
coolers.
• When the cooler is properly installed at outlet after it is
charged by Coke products follow the brand order.
• We also set the menu boards with combo on e & d outlets.
• On small convenience outlets we put their also hanging
rack.
• Set up warm display on outlets.

Benefits of setting up menu boards with combo:-

• Transaction value increases (meal + beverages) and as a

result, raises trade turnover and income.
• Attractive offer for the consumers.

• Combo visualization shortens consumer’s decision making

time.
• Chosen meals purchase suggestion makes dish
preparation and sales planning easier.
• Seeing “saving” communication consumers perceive
combo as promotion and buy them more willingly.
• Combo price is prominently visible to the consumer.

11
6
 Benefits of setting up hanging rack

• Easier access to product for consumers.

• Easier product merchandising.
• Product in order and visible.
• Selling space enlargement using small outlet space.
• Placed on consumers route will trigger impulse so that a
lot of consumers will buy beverages in soaps thus
increasing transaction value.

Benefits of setting up warm display

• Attractive presentation of products in coolers.

• Consumer’s connivances easier access to the product.
• Increase in sales and income. When consumer sees the
product he will be willing to buy it.

• Less time spent by the shop staff in filling up the

products.
• It fills the consumers want & willingness.
• Seeing “saving” communication consumers perceive
display as promotion and buy them more willingly.

11
7
BIBLIOGRAPHY
WEBSITES
• C o c a Co l a I n d i a
• Myenjoyzone
• Beverage Marketing
Corporation
• Beverage Digest

BOOKS
• Company’s monthly circulars
• AC Neilson research papers

11
8
APPENDIX
• Questionnaires

• Work Formats
• Sales Presenter

• Drafts
• Cash Bills

APPENDIX – 1
Questionnaire for Existing Outlets:

Hindustan Coca Cola Beverages Pvt. Ltd.

Disclaimer:-
This survey is being carried out to in compliance of the course curriculum of
the Summer Trainee, by filling out this questionnaire you accept and provide
the permission to use the data in the survey. The questionnaire will take 5-6
mins. to fill out (result of the pilot test). Just tick ( ) whichever is applicable
in the appropriate questions.

Questionnaire
11
9
Q1. Name of Outlet:

Q2. Location:

Q3. Life span of business:

Q4. Total revenue per day:

Q5. Criteria no.’s (7 criteria’s for a new outlet) of the

retailer.

Q6. Type of Outlet

a. Grocery Store b. Medical Store c. E & D
Outlets

d. Convenience store e. Juice Corner T1

T2

Q7. Deal with beverages, packaged juices and packaged

water
a. Yes b. No c. Not all

Q8. If yes, which brands?

a. Pepsi b. Coco cola c. Parle

d. Dabur e. Any others

Q9. Retailers VPO (Volume Per Outlet)

a. Coke b. Pepsi c. For
other

Q10. How often do u order?

12
0
Q11. If you do business with Coke, give reasons for
keeping it.
a. Brand Value b. Better
scheme

c. High Demand d. Good Supply

e. High Profit Margin f. Good Service
Quality

g. Any Other

12
1
Q12. Any problem do you face while doing business with a
Coke.
a. Timing & Frequency of Van b. Sales man’s
ability
c. Sales man’s attitude d. Daily in orders
e. Complete information & daily schemes
f. Delivery man’s professionalism
h. Any Other

Suggestions, if any:-

Signature Dated: - …/…/2009

Questionnaire for New Outlets:

Hindustan Coca Cola Beverages Pvt. Ltd.

12
2
 Disclaimer:-
This survey is being carried out to in compliance of the course curriculum of the Summer Trainee,
by filling out this questionnaire you accept and provide the permission to use the data in the survey.
The questionnaire will take 5-6 mins. to fill out (result of the pilot test). Just tick ( ) whichever is
applicable in the appropriate questions.
Questionnaire
Q1. Name of Outlet:

Q2. Location:

Q3. Life span of business:

Q4. Total sale per day:

Q5. Criteria no.’s (7 criteria’s for a new outlet) of the retailer?

Q6. Type of Outlet

a. Grocery Store b. Medical Store c. E & D
Outlets

d. Convenience store e. Juice Corner T1 T2

Q7. Reasons for not doing business with Coke?

a. Never approached by the company b. Less Demand

c. Profitability d. Company Policies

e. Competition from the near by outlet f. Distribution system
g. lack of space in shop h. Non Suitability
i. Any other

Suggestions, if any:-

Signature Dated: - …/…/2009

New Outlet Opening – 2009(Tracker)

D / STL

rea / Location Target

12
3
 Date of
IceOpenin
Box
S. g
Type
G.
A K P
ODate
Bill No.
Type of
refrigera
Estimat
tored VPO+
Size
Channe
Ko
l
PEP
J OWN
Sells
Em u Chips
pty s PEP
Sta t
Cooling
tus Equipm
T
i Ko
ent
c
k Pepsi
Own
Locati
( on /
Area
)
Criteria
NO.
(1 To 7)
Contact
No.
Distribu
tor

Outlet
Addres
Name
s

S.Contact
New Outlet Opening – 2009(Tracker) no
MD / STL No.

Area / Location OutletTarget

Name

12
4
12
5
SALES
PRESENTER

12
6
DRAFTS

12
7
CASH
BILLS

12
8