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SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

In Partial Fulfillment of Requirement for the


Award of Master in Business Administration
Submitted By:
AMAYA KUMAR PATRO
Roll No: 11MBAS03059

Submitted To:

DDCE, SAMBALPUR UNIVERSITY

EXAMINERS CERTIFICATE
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SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

The Summer Training Report of Amaya Kumar Patro Marketing Mix of CocaCola Is approved and is acceptable in quality and form.

Internal Examiner

External Examiner

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

DECLARATION
I, Amaya Kumar Patro undersigned hereby declare that this
report

entitled

Marketing

Mix

of

Coca-Cola

in

Hindustan Coca Cola Beverage Ltd with the requirement for


the degree of Master in Business Administration is the
record of original work done by me, under the guidance of
Mr.

Atulya

Kumar

Samantarya,

Marketing

(ASM).

The

empirical findings in this report are based on the data


collected by my self.

Amaya Kumar Patro


Roll No. : 11MBAS03059

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

CERTIFICATE
This is to certify that Mr. Amaya Kumar Patro, a student of
DDCE, Sambalpur University has prepared a report titled
Marketing Mix of Coca Cola as a partial fulfillment of
Master in Business Administration. This has not formed a
basis for the award of any Degree /Diploma by this university
or any other university.

We wish all success in his future endeavor.

Atulya Kumar Samantarya


Marketing (ASM)

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

IMST
CERTIFICATE OF GUIDE
This is to certify that Mr. Amaya Kumar Patro, bearing the
Roll No. 11MBAS03059 is a bonafide student of DDCE,
Sambalpur University. He has conducted the project on
Marketing Mix of Coca Cola under my guidance as per
the partial fulfillment of the requirement of the degree of
MBA.
To the best of my knowledge he has work sincerely to being
this report.

Srikant Chandra Pradhan

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

ACKNOWLEDGEMENT
I wish to take this opportunity to express my deep sense of gratitude to
Srikant Chandra Pradhan, IMST, ANGUL for his invaluable guidance in
this endeavour. He has been a constant source of inspiration and I sincerely
thank him for his suggestions and help to prepare this report.
I express my deep sense of gratitude to my Company Guide Mr. Atulya
Kumar Samantarya of Hindustan Coca Cola Beverage Ltd, for offering me
suggestions and help in successfully completing my project report.
Finally, It is my foremost duty to thank all my respondents, who helped me
to complete my project work without which this project would not have been
possible.

Amaya Kumar Patro

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

CERTIFICATE OF APPROVAL
This is to certify that the summer training report entitled:
Marketing Mix of Coca Cola
Submitted by Amaya Kumar Patro (Roll No 11MBAS03059), Sambalpur University,
Burla towards partial fulfillment of the requirements for the award of the degree of
Master of Business Administration (MBA) is a bona fide record of the work carried out
by him under the able guidance of Srikant Chandra Pradhan, Faculty, IMST, ANGUL.

(Approval of the Center Director)

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

PREFACE
The MBA 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 in necessary for the partial fulfillment of MBA
curriculum and it provides an opportunity to the researcher in
understanding the industry with special emphasis on the development
of skills in analyzing and interpreting practical problems through t he
application of management theories an 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.

SUBMITTED BY: AMAYA KUMAR PATRO | ROLL NO: 11MBAS03059

CONTENTS
Chapter 1

Introduction

Chapter 2

Beverage Industry In India

Chapter 3

Coca Cola World Wide

Chapter 4

Manufacturing Process

Chapter 5

Brand In Coca- Cola

Chapter 6

Theoretical Framework

Chapter 7

Distribution Channels Of Coca-Cola

Chapter 8

Cost Analysis

Chapter 9

Research Methodology

Chapter 10

Conclusions

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INTRODUCTION
In order to increase more wealth, most of the people depend on
business. So after a good deal of thought Government has introduced MBA
course, so that business may be managed and guided and developed
methodically
Management as a process by which manager create, direct, maintain
and operate purposive organization through system, systematic co-ordinate
co-operative human effort. Management is the art of getting thing done
through and with the people in formally organized groups. It is the
concerned with ideas, things and people. Ideas represent though,
conceptions, innovations, opinions and researches, things denotes activities
or task people may be taken to be employs, workers and subordinates who
work within the organization.
On the societal front, we have the family, the clubs, the societies and
art and cultural (ethnic) groups. In business too, there are groups in the
forms of firms, companies and conglomerates. It is the presence of groups
that give rise to the concept of organization.
In the present competitive scenario the emergence of globalization and
liberalization policy has brough explosive growth in global trade. It has
removed all trade barriers. It triggers companies to extend their market
rather than to remain confined within domestic region. This is the reason
why MNCS are entering into a domestic market. Though competition among
firms create problem for one to exist. To deal with such critical situation
companies are required to measure their status in the market. Previously the
seller was the ruler in the market as oligopoly market was continuing.
In the modern context, with the increase in the number of seller, customers
are the sole regulator of the market. To wider the coverage of market it is
essential to establish the image of the product in the mind of the customer.
After its exit from India in the 1970s, Coca-Cola returned to India 1993. It
was formally launched in 1994 when it took over the Parle brands such as
Thumps Up, Gold Spot and Limca. Coca-Cola also bought over the
distribution system from Parle. The bottlers of Coca-Cola India were
franchisees who paid a certain amount of royalty to Coca-Cola for bottling
its products but in order to make their distribution system more effective
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Coca-Cola India took over its bottlers around 1996-97-98. This has seen a
tremendous increase in the total market share of Coca-Cola in India, which
according to the research conducted by ORG-MARG is at 59% and in
Mumbai it is around 47%. The turnover for Coca-Cola for the year 1999 has
been around 2800 crores.

EXECUTIVE SUMMARY
Distribution plays a key role in the end profitability of any organization. In a
beverage giant like Coca Cola, distribution is the one main factor that has
helped it to create a near monopolistic situation in soft drink Industry. Coca
Cola India is divided into the North, South and Central Zones. This report
deals with the study conducted at Hindustan Coca Cola Beverages Pvt
Ltd, Bhubaneswar which is a wholly owned subsidiary of Coca Cola India.
It specifically handles the operations in Orissa.
Distribution cannot be isolated without considering the manufacturing
process, product type, the plant location and the financial ability of the
company. The entire logistical operation therefore has to be considered
before setting up a distribution network.
The Raw material procurement in this company is economical and
manufacturing activities take place at the Khurda plant. The company has
two production units in Orissa, one at Khurda and other at Rourkela, all
operating at around 95-98 % efficiency, which presents a very healthy
picture. The conversion of raw material to final product is well mechanized
using automatic flow of materials from one unit to another.
At Hindustan Coca-Cola there are two intermediary levels, the distributors
and the retailers (customers) operating before the goods reach the final
consumer. The circular distribution network where the empty bottles are
returned to the bottling plant is what distinguishes the soft drink distribution
chains from others.
The entire channel management decisions, the major channel alternatives
available, the strategies required to successfully make the product available
to the consumer are highlighted. Today the only competition that Coke faces
is from Pepsi Foods and juice manufactures. With a well-established market
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and being voted as the most valuable brand in 2000 Coca Cola Pvt. Ltd is
constantly touching new horizons of success.
The following report aims at giving a holistic picture of the operations at
Hindustan Coca Cola Beverages Pvt Ltd, and how these very operations
contribute to its overall successful functioning. It also throws light on the
various strategies and promotional activities undertaken by the organization
in order to sell its products. The report reveals facts as to how quickly the
organization is able to distribute the finished goods to the customers at the
least cost and achieve high market share and profit.

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BEVERAGE INDUSTRY IN INDIA


Non-alcoholic soft drink beverage market can be divided into fruit drinks
and soft drinks. Soft drinks can be further divided into carbonated and noncarbonated drinks. Cola, lemon and oranges are carbonated drinks while
mango drinks come under non-carbonated category. The soft drinks market
till early 1990s was in hands of domestic players like Campa,
Thums up, Limca etc but with opening up of economy and coming of MNC
players Pepsi and Coke the market has come totally under their control.
While world wide Coke is the leader in carbonated drinks market in India it
is Pepsi which scores over Coke but this difference is fast decreasing
(courtesy huge ad-spending by both the players). Pepsi entered Indian
market in 1991 coke re-entered (After they withdrew in 1977) in 1993.
Pepsi has been targeting its products towards youth and it has struck right
chord with the market and the sales have been doing well by sticking to this
youth bandwagon. Coke in a span of 7 years of its operations in the county it
changed its CEO four times but finally they seem to have started
understanding the pulse of Indian consumers.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for
home consumption. Fountains also dispense them in disposable containers.
Segmentation
The market can also be segmented on the basis of types of products into cola
products and non-cola products.
Non-cola can be divided into 4 categories based on the types of
flavors available, namely:
Orange
Cloudy Lime
Clear Lime
Mango

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i. Orange flavor based soft drinks. The segment is largely dominated by


national brands like Fanta of Coca Cola and Mirinda Orange of
PepsiCo.
ii. Cloudy Lime flavor is largely dominated by Limca of Coca cola and
Mirinda Lemon of PepsiCo...
Clear Lime: this segment of the market witnessed good growth in with
all the players launching their brands in the segment. The brands
available in this segment are 7 Up of Pepsi, Sprite of Coca Cola.
iii. Mango: The leading brands in this segment are: Maaza of Coca Cola,
Mangola (Earlier of Dukes now of PepsiCo) and Slice of PepsiCo &
Frooti
Major Players
The soft drink market in India is dominated by the two global majors Pepsi
and Coca-Cola. Coca-Cola, which had winded up its India operations during
the introduction of the FERA regime, reentered India 16 years later in 1993.
Coca-Cola acquired a major chunk of the soft drink market by buying out
local brands Thumps Up, Limca and Gold Spot from Parle Beverages. Coca
Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada
Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired
distribution rights of these brands from IFB Agro Limited. Pepsi although
started a couple of years before Coca Cola in 1991, has a lower market share
today. It has bought over Mumbai based Dukes range of soft drink brands.
Both the cola manufacturers come up with their own market share figures
and claim to have increased their share. Recently in August '00 Pepsi
claimed to have increased its market share for first five months of calendar
year 2000, to 49% from earlier levels of 47.3%, while Coke claims to have
increased its share in the market to 57% in the same period from 55% in the
corresponding period last year.

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COCA-COLA WORLDWIDE
The Coca-Cola Company is the world's leading manufacturer, marketer, and
distributor of nonalcoholic beverage concentrates and syrups, with world
headquarters in Atlanta, Georgia. The Company and its subsidiaries employ
nearly 31,000 people around the world. Syrups, concentrates and beverage
bases for Coca-Cola, the Company's flagship brand, and over 230 other
Company soft-drink brands are manufactured and sold by the Coca-Cola
Company and its subsidiaries in nearly 200 countries around the world.
By contract with the Coca-Cola Company or its local subsidiaries, local
businesses are authorized to bottle and sell Company soft drinks within
certain territorial boundaries and under conditions that ensure the highest
standards of quality and uniformity.
The Evolution of Coca Cola
Dr. John S. Pemberton in Atlanta, Georgia invented Coca-Cola in May
1886. The name "Coca-Cola" was suggested by Dr. Pemberton's bookkeeper,
Frank Robinson. He penned the name Coca-Cola in the flowing script that is
famous today. Coca-Cola was first sold at a soda fountain in Jacob's
Pharmacy in Atlanta by Willis Venable. During the first year, sales of CocaCola averaged nine drinks a day, adding up to total sales for that year of $50.
Since the year's expenses were just over $70, Dr. Pemberton faced a loss.
Today, products of the Coca-Cola Company are consumed at the rate of
more than one billion drinks per day.
Trademark Origin:
It has been said that if production plants and inventories of The Coca-Cola
Company were to go up in flames overnight, any bank would lend the funds
for rebuilding. The loan would be secured only on the value of the
trademarks "Coca-Cola" and "Coke," the number-one soft drink worldwide.
Soon after John S. Pemberton prepared the first batch of Coca-Cola syrup in
1886, his friend and bookkeeper, F.M. Robinson, chose an alliterative name.
He wrote the words in the now-familiar flowing script, and, in 1893, "CocaCola" was registered officially in the U.S. Patent and Trademark Office.
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Early advertising discouraged calling the product "Coke." It urged "Ask for
Coca-Cola by its full name; nicknames encourage substitution." Since
people kept asking for "Coke," the Company relented to popular demand. In
1941, the trademark "Coke" received equal prominence in advertising with
"Coca-Cola," and in 1945, "Coke" was registered as a trademark.
The shape and design of the contour bottle for Coca-Cola is also a U.S.
registered trademark, one of the few package designs to receive this
distinction. The bottle was designed in 1915 by Alexander Samuelson, an
employee of the Root Glass Company of Indiana. Legend suggests that the
bottle was shaped deliberately to resemble the fashionable hobble skirt.
Bottling System
One of The Coca-Cola Company's greatest strengths lies in its ability to
conduct business on a global scale while maintaining a local approach. At
the heart of this approach is the bottler system. The Company has business
relationships with three types of bottlers: (1) independently owned bottlers,
in which it has no ownership interest; (2) bottlers in which it has invested
and have a noncontrolling ownership interest; and (3) bottlers in which it has
invested and has a controlling ownership interest.
During 1999, independently owned bottling operations produced and
distributed approximately 27 percent of its worldwide unit case volume.
Bottlers in which we own a noncontrolling ownership interest produced and
distributed approximately 58 percent of its 1999 worldwide unit case
volume. Controlled bottling and fountain operations produced and
distributed approximately 15 percent. The company views certain bottling
operations in which it has a non controlling ownership interest as key or
anchor bottlers due to their level of responsibility and performance. The
strong commitment of both key and anchor bottlers to their own profitable
volume growth helps it to meet its strategic goals and furthers the interests
of its worldwide production, distribution and marketing systems. These
bottlers tend to be large and geographically diverse, with strong financial
resources for long-term investment and strong management resources. These
bottlers give the company strategic business partners on every major
continent.
Brand Wagon
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These aren't the only trademarks of The Coca-Cola Company. As lifestyles


grew more diverse, consumers demanded soft drinks to meet different
thirsts. For example, a consumer may want a sugar and caffeine-containing
drink in the morning, a diet soft drink at lunch and a caffeine-free product in
the evening. The extension of the Coca-Cola name began in 1982 with the
introduction of diet Coke (also called Coca-Cola light in some countries).
Diet Coke quickly became the number one selling low-calorie soft drink in
the world. In 1983, caffeine-free versions of Coke and diet Coke were
introduced. And, in 1985, Cherry Coke made its appearance. With these line
extensions, mega brand Coca-Cola has more products that more people can
enjoy more often and on more occasions than ever before. The name
"Fanta" was first registered as a trademark in Germany in 1941, when it was
used for a few years for a soft drink created from available materials and
flavors. The name was then revived in 1955 in Naples, Italy, when it was
used for the "Fanta" orange drink we know today. Fanta is now the #1
orange soft drinks in the world. The idea for the name of the lemon-lime soft
drink, Sprite, came from early advertising. During the 1940s, an elf with
silver hair and a big smile (and most often wearing a bottle cap for a hat!),
was used in advertising for Coca-Cola. This character, known affectionately
as the "Sprite Boy," urged consumers to buy more of the product.
In the late 1950s, the Company developed a citrus-flavored drink. The short,
sharp and memorable sound of "Sprite" made it an ideal name for the new
product. Since another company had been using the name since 1955, the
Company had to purchase and register "Sprite" as its property. In 1961,
Sprite made its U.S. debut.
Guiding principles of Coca Cola India
We will conduct ourselves and our business activities with the highest
standards of honesty, integrity and professionalism.
We will recognize the positive contributions that we make as individuals and
team members to produce our business success.
We will encourage a learning environment where people can constantly
grow, develop and contribute.
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We will strive for excellence and seek continuous improvement in


everything we do.
We will respect all stakeholders, including employees, partners and suppliers
and instill them with a passion to deliver the highest quality goods and
services.
We will foster initiative and creativity by empowering individuals to attain
well-defined objectives.
Vision of Coca Cola India
Provide exceptional strategic leadership in the coca-cola India systemresulting in consumer and customer preference and loyalty, through cocacolas commitment to them, and in a highly profitable coca cola corporate
branded beverages system.
Mission of Coca Cola India
customer service and bottling system strategies, processes and tools a 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 and volume.
TCCC as 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 teamwork, flexible business
system and continuous improvement.
CCI Associates as superior career opportunity.
Indian society in the form of a contribution to economic and socio
development.

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Plant locations
The following are the main Divisions of the plant.
1. Khurda Plant- RGB (Returnable Glass Bottle), Pet bottles & Cans are
manufactured here.
2. Rourkela Plant- RGB (Returnable Glass Bottle), Pet bottles & Cans are
manufactured here
Transportation -The department is responsible for the dispatch of
packed goods to the final destination described in detail later)

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MANUFACTURING PROCESS
1. INGREDIENT DELIVERY
Sweetener
Team of professionals, work on selecting,
auditing, sampling, testing, approving and then
authorizing the sugar suppliers and the list of
such authorized suppliers with approved sugar
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lots and along with the certificate of analysis are sent across to all the
bottling unit for procurement.
Secret formula
Created in special concentrate plants, it's delivered, held and used under
strict controls to maintain its integrity and security. Each unit of concentrate
is especially identifiable to allow the "history" of each component to be
researched at any stage of production, storage or use.
Co2 Formula
When delivered to the plant, carbon dioxide, or CO2, comes in cylinders for
easy delivery and storage. But what is it? In essence, it's a colorless and
odorless gas that provides the "fizz" for our beverages. But it's also a byproduct of our breathing and used by plants and trees to produce oxygen.
Water
Since water is a key component to all our beverages, its quality is critical.
And, since public water quality varies around the world, each plant further
treats the water it uses. This means that before water is added to any of our
beverages; it's rigorously filtered and cleansed. We then continuously
sample the water to ensure it meet our standards.
Materials
Ingredients are not the only things delivered to the plant. Other materials
such as bottles, cans, labels and packaging are also delivered. Our plants in
India use refillable bottles, CANS, PET etc. in the Production Process, when
bottles and cans are delivered to the plant; they are carefully inspected to
ensure that they meet our exacting standards. Once these have passed initial
inspection, they move on to be washed and/or rinsed.
2. WASHING AND RINSING
To ensure quality, each bottle is washed,
sanitized and rinsed before being filled. While
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this sounds simple, the actual steps can differ by bottling plant. In India, our
plants use refillable glass, cans or PET bottles. To ensure they meet our
cleanliness standard, bottles are first hit with prerinse jets which remove any
dirt or debris. They are then soaked in a high-temperature deep cleaning
solution that removes any remaining dirt and sanitizes them. The bottles then
move to the "hydro wash" where they are washed again with a deep cleaning
pressure-spray.
3. MIXING AND BLENDING
H2 O
and
Sugar
Mixing and blending begin with the steps of mixing pure water with refined
sugar, which creates simple syrup. The syrup is then measured for the
correct amount of sugar.
SecretFormula
Our secret formula is... still secret! That's right; the secret formula remains a
mystery to the millions of people in nearly 200 countries that enjoys our
refreshing beverages everyday. Even though we can't tell you the secret, you
can be sure that LIFE TASTES GOOD with coca-cola.
H20andSyrup
With the syrup nearing its final state, we mix it with pure water, creating the
finished uncarbonated beverage. However, the water and syrup must be
mixed in right ratio. This is done by the beverage proportioning equipment.
It accurately measures the correct ratio for each and sends this mixture to the
carbonator
CO2Adding
Adding CO2 or carbon dioxide gas is the final touch that carbonates the
beverages. Carbon dioxide not only gives our beverages their effervescent
zest, but it also adds to the distinctive and familiar taste everyone has come
to expect from our beverages.
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4. FILLING
Once all the ingredients have been mixed and
blended and the bottles have been cleaned and
sanitized, we're ready to start filling. This is a
surprisingly complex process requiring precision
at each step. To begin with, bottles must be
carefully timed as they move to the filler synchronization is key. Once at the filler, bottles are either held securely in
place by flexible grippers or precisely placed under filling valves by
centering devices. Before the bottles can be filled, the inside of the bottles
must be pressurized. This allows for the force of gravity itself to draw the
beverage into the bottle - a process that ensures the smooth flow of liquid,
with little to no foaming.
5. CAPPING
Once filled, bottles are then capped. We use
different caps for different bottles - glass bottles are
usually topped with a metal crown while "PET
BOTTLES" are topped with a plastic screw-top.
Each cap type then moves through different parts of
the machine, which ensures each cap stays scratch
free and is in the right position to be precisely
placed on the bottle. As quality and freshness are key, we use a "no closure"
detector during the capping process and a "go-no-go gauge" or "torque
meter" after the bottles has been capped. The "no-closure" detector checks if
a screw top or crowns has been placed on bottle. The process actually stops
if the detector doesn't find a closure. The "go-no-go gauge" checks for the
proper crown crimp and the "torque meter" checks to make sure the screwtop is good and tight. If the bottle cap isn't just right, the beverages can
become flat or be affected in other ways. If this happens, the bottle is
discarded.
6. LABELING
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Once the bottles have been filled and capped, they


move on to be labeled. A special machine dispenses
labels from large rollers, cuts them and place on the
bottles. For special labels such as commemorative
bottles for football championships, the labels are
sent to the bottling plants for approval, and then used
for packaging. Depending on the occasion, some of
these special bottles will go only to the specific
locations. For example, a national football championship bottle will be sent
only to the home town or state of the championship team.
7. CODING
The bottle is now ready to be coded. Each one of
our beverages is marked with a special code that
identifies specific information about it. The
codes simply identify the date the beverages was
bottled or canned. These codes identify the date,
time, batch no. and the MRP. Product coding allows us to ensure that u
receive our beverages at their flavorful best.

8. INSPECTION
We inspect bottles at many points during the
process. With refillable bottles, it happens they
are first brought into the plant. They are also
inspected after they are washed and again after
they are filled. Inspectors look for external bottle
imperfections and make sure each bottle has the
right amount of beverages. Even after filling,
each plant samples bottles for analysis in its lab
to ensure quality is up to standards.

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9. PACKAGING
Once our filled beverages have passed final
inspection, they are ready to be packaged for
delivery. Generally, packing can refer to
everything from the unique BOTTLE &
CAN designs, to cardboard boxes and
containers, to plastic rings. Because the needs and tastes of our consumers
are so diverse, the packaging varies depending on where the beverages are
being sent.
10. WAREHOUSING & DELIVERY
In order to make sure the freshest beverages
possible get to you, each warehouse must
efficiently manage the thousands of beverages
cases produced each day. Beverage organization
is key, though it's the bottle and can coding that
allow for the necessary precision. From the warehouse, we load beverages
onto our distinctive trucks. Night and day, our trucks are delivering our
refreshing beverages to stores, soda fountains, and vending machines near
you.

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Different Brands in coca-cola

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The world's favorites 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. CocaCola'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 skyrocketed the brand to make it India's favorites 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 leap sand
bounds. Coca-Cola had signed on various celebrities including movie stars
such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly,
southern celebrities like Vijay in the past and today, its brand ambassadors
are Aamir Khan and Hrithik Roshan.

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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 color, 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 times
with friends.

Maaza was launched in 1976. Here 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 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
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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"

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 the brand franchise. Limca energizes refreshes
and transforms. Dive into the zingy refreshment of Limca and walk away a
new person.

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Strong Cola Taste, Exciting Personality


Thums Up is a leading carbonated soft drink and most trusted brand in
India. Originally introduced in 1977, Thums Up was acquired by The CocaCola Company in 1993. Thums Up is known for its strong, fizzy taste and
its confident, mature and uniquely masculine attitude. This brand clearly
seeks to separate the men from the boys.

World wide Sprite is ranked as the No.4 soft drink & is sold in
more than 190 countries. In India, Sprite was launched in
year1999 & today it has grown to be one of the fastest
growing soft drinks, leading the Clear lime category.

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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
nations biggest beverage category.
Georgia, which promises a great tasting,
consistent, hygienic and affordable cuppa is
available in a range of
sizzling flavours,
adrak, elaichi, masala and plain tea cappuccino, ochaccino 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
McDonalds outlets across the country Georgia
Gold has driven coffee sales

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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 subcontinent.
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.
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. A
universal need that cannot be left to chance.

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Minute 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.

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Marketing Channels
A marketing channel performs the function of moving goods and products to
consumers. It overcomes the major time, place, and possession gaps that
separate goods and services from those who would use them. A marketing
channel covers the following functions.
1. Research gathering of information necessary for planning and
facilitating exchange.
2. Promotion development and dissemination of persuasive
communications about and offer.
3. Contact searching out and communicating with prospective buyers.
4. Matching shaping and fitting the offer to the buyers requirements
(grading assembling, packing etc.)
5. Negotiation the attempt to reach the final agreement on price and other
terms of the offer so that transfer of ownership or possession can be
affected.
6. Physical distribution transporting and storing of goods.
7. Financing acquisition and dispersal of funds to cover the costs of the
channel work.
8. Risk taking assumption of risks in connection with carrying out the
channel work.
A Distribution channel is a set of firms and individuals that take title, or
assist in transferring title, to the particular good or service as it moves from
the producer to the consumer.
In a distribution channel the role of intermediaries is to transform the
assortment of products made by producers into the assortment wanted by
consumers. Thus intermediaries play an important role in matching supply
and demand.
Distribution Strategies
Marketing channels are set of interdependent organization involved in the
process of making a product or service available for use. There are basically
four consumer marketing channels. They are:
1. Zero level channel
2. One level channel
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3. Two level channel


4. Three level channel
There are basically two kinds of strategies adopted by organization to
distribute their product.
1. Push Strategy: under this method the producer pushes the stock in the
market. This can be achieved through various promotional methods. The
agents are given incentives to increase the volumes of sales through
aggressive selling.

Manufact
urer

Distributors

Consume

Retailer
s

2. The Pull Strategy: under this strategy the demand for the product by the
consumer is created. The consumer feels the need to buy the product.
This is done through advertisement and other consumer schemes.
Ruchi uses both techniques to enhance its sales

Distributors

Manufactu
rer

Retailer
s

Consume
r

This technique of push and pull have been extremely successful in the
company which has boosted its sales.
Eg. There was a particular scheme where the retailers were required to
maintain the Ruchi product display racks, place them attractively and stock
it only with their products. This was a display rack contest where the retailer
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who maintained it best was given discount and other prizes. This was a
promotional technique, which also helped to push the product into the
market thus magnifying the sales.
Inside Orissa Marketing:
As the COCA-COLA products are very old for Orissa and it is a company
that is situate-d at Orissa, marketing is very each for this area. Generally
they adopt two level channel marketing. The products go to the distributors
and from the distributor to the retailer.
Distributors
Retailers
COCA-COLAS CHANNEL OF MARKETING IN OUTSIDE OF
ORISSA:
Outside Orissa marketing of COCA-COLA product adopt different channel
marketing system. They generally appoint the super stockiest in outside
Orissa market. Then the super stockiest appoints the distributors in different
areas and controls them. Then the distributor distributes the goods among
the retailers.

Super stockiest
Distributors
Retailers

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Distribution Channel at Hindustan Coca Cola


Marketing and distribution channels can be characterized by the number of
channel levels. Each middleman that performs some work in bringing the
product and its ownership closer to the final buyer constitutes a channel
level. Since the producer and the consumer both perform some work they are
a part of every channel. The number of intermediary levels determines the
actual length of any channel.
Direct distribution channel: In this type of distribution the producer sells the
products directly to the consumers. This type of system is commonly found
in the case of cosmetics like Avon where the salesman does door- to- door
service.

Consumer

Manufacturer

Indirect distribution channel: In this type of channel there are one or more
intermediaries operating in order to reach the product to the final consumer.
All FMCGs operate through the indirect marketing channel.
Coca-Cola, which is an FMCG also, uses the indirect method of distribution.
The following shows the distribution system used by the company:

Manufacturer

Distributors

Retailers

Consume
r

Unlike most FMCGs the soft drinks industry has a relatively smaller channel
of distribution. In the above diagram we can see that at Hindustan CocaCola there are basically two intermediary levels operating before the goods
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reach the final consumer. This procedure is basically followed in


Bhubaneswar and other cities.
As soft drink is an item, which is consumed by all types of, consumers it
should be made available at all kind of retail outlets. The retail outlets can be
further classified as follows:

1)
2)
3)

Channel of trade:
Grocery
Eat & Drink
Convenience

Key Accounts: these are certain high profile retail outlets, which have
major status attraction but deliver relatively lower volumes. For e.g. the
various discotechques, theatres and other entertainment centers, large
shopping malls like Big Bazaar etc. McDonalds is another example but it
generates very large volumes and is one of the largest and most precious
customers for Coca-Cola.
How should goods be flipped (Transportation).
Transportation plays a very important role, because Coke being a fast
moving good is in high demand & also there is a 2 way movement of the
goods, filled bottles from Coke to customers & return of empty bottles from
customers to Coke.
Coke follows the Motor Carriers mode. Some of these Trucks are owned by
Coke and some hired. Most of these trucks have a special design, which
facilitates easy handling and storage of the crates. From the distributor there
are specific auto rickshaws which carry the products to the retail outlets.
For e.g. a auto rickshaw covers specific routes daily
Each auto is accompanies by a sales man & a couple of helpers. The auto
carries these crates and gives it to the various retailers and restaurants. There
is a deposit charged on each crate. Once the agent gives the customer the
required number of crates he gives him the bill and in return asks for empty
bottles. The helpers sort the empty bottles and arrange all Coke products in
one crate.
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Over the years Coke has been operating through franchisees (franchisee
owned bottling operation FOBO). Only recently it is trying to take over the
bottling plants formerly owned by independent bottlers. It wants to set up an
integrated bottling system in India. This is being vigorously opposed by the
independent bottlers who would have to sell 51 per cent of their equity to
Coke and participate in a joint venture. Coca-Cola was offering $ 5 per crate
to bottlers to buy them out. Bottlers allege that the company offered a much
higher price of $ 13 per crate to bottlers in Pakistan.
Unlike Pepsi, which has taken the more capital-intensive route of
owning and running its own bottling factories alongside those of its
franchisees, Coke operates only through FOBO. Coke supplies its soft drink
concentrate (the secret potion) to its bottlers around the globe. To reduce
loading time and enable faster disbursement of crates, Coke has introduced
special A-frame (the inside of the truck has a structure resembling the
alphabet A and the crates are stacked against it). The trucks also give the
company permanent hoarding space on their sides and backs.

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THE FINISHED GOODS FLOW

PLANT
KHURANT
RGB, Cans & PET

Coke
Distributor

E
M
P
T
Y
B
O
T
T
L
E
S

R
E
F
I
L
L
I
N
G

Various Routes through Trucks

Customers
Customers

Customers

Physical
Distribution in Bhubaneswar
The Coca-Cola manufacturing plant is situated at Khurda. There are
distributor centers or depots located at Bhubaneswar. These depots handle
various predetermined routes and reach out to the various retail outlets. 1
particular auto rickshaw is assigned for every route. So in this way there are
many rickshaw covering different routs of BBSR. Thus these distributors try
to cover the entire city.
Details of the auto rickshaw:
- Some of the autos are distributor owned while the others are hired.
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- Bottles are deposited on each crate.


- 1 crate can contain 24 bottles of 300 mls.
The filled stock moves from the plant to the distributor (warehouse) at
regular intervals.
The auto leave with filled stock from the distributors depot early in the
morning. They follow the route list assigned for the day. Every auto
makes approximately 2 visits in a day.
The route agents go to each outlet on the route and make the sales and
take spot payment. They also collect empties from each outlet.
The retailers then sell the product to the final consumer. The promotional
items are also passed on to the retailers from time to time.
The order for each day is anticipated.
In the evening the empty stock are sent back to the plant.
The route salesmen do the cash accounting immediately and hand it over
to the distributor.
This cycle operates on a daily basis.
Distribution flow
The distribution flow at Hindustan Coca-Cola can be classified into the
following:

Physical flow
Title flow
Payment flow
Information flow
Promotion flow

1. Physical flow: this describes the actual flow of physical stock of the
company right from the manufacturers to the final consumers.
The manufacturing plant of Hindustan Coca-Cola is the bottlers. They
bottle the syrup and the soda and do the labeling, branding etc.
The goods then move out from the manufacturing plant to the various
depots or warehouses, which are also the distribution centers. These
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distribution centers have salaried agents called the route agents who act
as the salesmen of the company.
These route agents then go in the delivery vehicle into the market and sell
the stock to the retailers.
The retailers finally sell the product to the end consumer on demand.
The empty bottles stacked by the retailers are returned to the agents who
in turn send them back to the manufacturer.
It is thus a circular flow of where the filled stock moves out of the
company and the empty stock is returned.
This system operates a little different from the conventional FMCGs
where the stock requisites are made in advance. In this case the demand
is on a day-today basis.

2. Title Flow: this describes the passage of ownership from one channel
member to another.
In this case the title of ownership passes in the same way as the
movement of the goods. The title of ownership first belongs to the
manufacturers. It then moves on to route agents who carry the stock.
When the retailers purchase the stock from the route agents, the tile of
ownership for the purchased stock then passes product he becomes the
owner of the product.
3. Information Flow: this shows how channel organizations exchange
information. At Coca-Cola the information passes from one level to the
other in an ascending order.
The company passes on information regarding the stock, various
strategies to be undertaken etc. to the distributors.
The distributors in turn pass on information regarding various
customer and consumer schemes, and other requirements.
The retailer finally informs the consumer of the various changes
taking place or the benefits the consumer can derive.

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Sometimes the information also passes on from the company directly


to the consumers in the form of advertisements.

Manufacturer

(Distributors)

Retailers

Consumer

4. Promotion flow: this describes the directed flows of influence


(advertising, personal selling, sales promotions, and publicity) from one
party to another.
In this case the company may either adopt direct method of
advertisements to educate the consumers of the various products
styles and trends in the market.
Another promotional flow takes place from the manufacturer to the
route agents who emphasize on the merchandising and scheme
implementation to the various retailers. These retailers then do the
required promotion of the product in terms of posters, banners,
paintings, and other POPs. They also pass on the consumer schemes,
which attract the end consumer.

Manufacturer

Advertiser

Distribut
ors

Retailers

Consumer

Identifying Major Alternatives


The company has had to identify the major channel alternatives based on
the following factors: 1. The types of business intermediaries: Whether it requires a sales force
from the company itself, or separate distributors, how they should
categorize the retailers etc
2. The number of business intermediaries: It has to decide the number of
channel members. Since soft drinks are products, which have daily
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demand and are sold at almost all retail outlets they, needed to adopt
intensive distribution?
Evaluating major Channel objectives
Based on the types and number of intermediaries and the terms and
responsibilities of the channel members the company has major channel
alternatives. It then evaluates each alternative on the basis of the following:
1. Economic criteria: The Company decides which channel is most
economic and cost effective. Which channel will help it to achieve the
desired objective? Coca-Cola believes that investing heavily in channel
management is acceptable as long as it yields the desired returns.
2. Control criteria: The Company has to decide on the control factor while
deciding upon any particular channel. There are various issues related to
control that the company may face.
Damages: Coca-Cola tries to make sure that the distributors are
efficient in handling the product. It often happens that due to
inadequate and careless handling of the product and other company
possessions there are heavy losses incurred by the firm. In this respect
the company prefers to have reduced handling of the stocks.
Control over distribution: Coca-Cola has to monitor if the distribution
is taking place through the right channel members and the stock is
actually moving fast.
Control over promotion: The Company makes sure that the retail
channels are actually doing the necessary merchandising for the
company as they get various incentives to do it. The points of
purchases and other schemes have to reach out to the consumers.

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Cost Analysis
The percentage of the cost of the entire logistical operation in coke is around
30% of the manufacturing cost.
The break up is as follows:
1. Raw materials

60%
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2. Transport
5%
3. Inventory
10%
(Increases in seasons as mentioned before around 15%)
4. Labeling
4%
5. Bottling
5%
6. Warehousing
10%
7. Inspection
4%
8. Wastage & breakage
2%.
Cost control and distribution efficiency
Customer visibility arrives as one of the direct co-relations to brand
mobility. Ensuring this crucial customer visibility implies executing a timely
product delivery at the doorstep of the consumer. The soft drinks major
Coco-Cola India Pvt. Limited has initiated a string of cost- conscious action
plans. They incorporate advanced planning of stock dispatches, cost
optimization right from the production backrooms to the front-end retail
shelves and instituting efficient performance mechanisms for a smoother,
speedier and unhindered movement of SKUs. All these systems and
initiatives rolled into a single actionable unit would hence indicate that the
corporate has solved the logistics maze.

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RESEARCH METHODOLOGY
A brief survey was conducted in certain areas of Bhubaneswar to study the
functioning of Coca Cola and observing the availability of the product. It
covered areas like Bapuji Nagar, Cuttack Puri road, Ashok Nagar, Satya
Nagar, Master Canteen, Sriaya Stutee theater areas, Kesari hall etc.
MARKETING RESEARCH
DEFINATION: It is defined as the systematic design, collection, and
analysis and reporting of data and findings to a specific marketing situation
facing the company.
RESEARCH OBJECTIVES:
To enhance the distribution system by: Analysing the distribution system to identify the weak areas and gaps.

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Making a comparative study of availability of Coca-Cola and its


competitors products.
Suggesting strategies for making improvements in the availability,
thereby increasing sales.
Strategy to convert the shared outlets to Coco-cola monopoly outlets.
RESEARCH PLAN:
DATA SOURCES:
Primary data The data was collected from different retail outlet of
Bhubaneswar.
RESEARCH APPROACHES:
The survey was done on 45 shared retail outlets in areas of Bapuji Nagar &
Cuttack Road to find the interests of retailer to convert into monopoly
outlets & approximately 40 retail outlets in other part of BBSR to know their
preference, distribution gap and satisfaction.

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Research Design : Quantitative


RESEARCH INSTRUMENTS
QUESTIONNAIRE:
A questionnaire consists of a set of questions presented to the retailer,
because of its flexibility, the questionnaire is by far the most common
instrument used to collect primary data. The questionnaire used for the
survey had both the open ended as well as close ended questions.
SAMPLING PLAN :
1. Sampling Unit: All the retailers selling Coco-cola & Pepsi beverages.
2. Sample Size : 40 Retail outlets to know the distribution gap & 45
retail out let to know the distribution gap and convert the shared
retail outlet to monopoly outlet in different parts of Bhubaneswar .
CONTACT METHOD:
Personal interview: The retailers were asked to fill the questionnaire only
after a depth interview. Their views were well understood and noted down.
Analysis & Findings of the 45 surveyed retail outlets of BapujiNagar

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A number of prominent features were observed with regard to display


merchandising, attitude of the agents etc that are enumerated below. Also a
few recommendations are given in these aspects.
Observations
1. ATTITUDE
In relation to competition, the attitude of the route agents of the CocaCola company seemed very laid-back. Some of these predetermined
route are old thus they have not been able to adapt to the changing market
scenario, resulting in loss of sales.
2. SCHEME IMPLEMENTATION
During the course of the survey we noticed that many customers were,
either unaware of the several schemes introduced by the company such as
two RGB free with buying of one karate of Limca scheme were not
provided to the customer on time causing hesitation amongst the
customer to keep RGB . Some schemes meant for the consumers are also
not communicated properly to the retailers.
3. COOLER SERVICEDHAKHINA KALI AGENCY
Many customers expressed dissatisfaction about the services of the
company coolers. The servicing was rated as inefficient and always
delayed.
4. MERCHANDISING
While conducting the survey it was observed that there was extensive
abuse of Coca-Cola coolers and display racks.

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CONCLUSION
A multinational giant like Coca Cola is looking to continuously expand its
operation in India where it sees tremendous growth opportunities. With the
launch of Kinley in the branded water segment, the company is leaving no
stone unturned to increase its market share. Coke has also decided to venture
into e-commerce trying to link its 31 factories with its 150 warehouses and
6000 distribution centers all over the country, cost reduction being the main
motive. This goes to prove its magnitude and investment capability.
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As we have observed, the take over of the Parle brands has immensely
helped Coke to establish itself in the Indian Market ever since its come back
in 1993. Coca Colas superior brand image coupled with dense distribution
network that Parle already had, has helped it to create a wave in the soft
drink market like no other.
To conclude, this report has tried to analyze the distribution operations and
understand what are the key factors that have spelt magic for Coca Cola in
India and the world over.

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QUESTIONNAIRE
1. Which Brand is selling more?
i) coke ii) Pepsi iii) Fanta
2. Which company gives more no of schemes round the year?
i) Coca-cola ii) Pepsi
3. Is Coca-cola a good corporate citizen? How does it support local
communities?
4. What is your policy on ethics?
5. Can soft drink be part of a healthy diet?
6. Should I be concerned about the amount of sugar and calories in soft
drinks?
7. Does sugar make children hyperactive?
8. Are soft drink bad for my teeth?
9. Do soft drink have a lot of caffeine?
10. Is caffeine safe?
11. Is there a connection between soft drinks and bones?

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BIBLIOGRAPHY
1.

Marketing Management by Philip Kotler

2.

Research Methodology by C. R. Kothari

3.

Marketing Management by Rajan Saxena

4.

Product Management by Ramanuj Majumdar

5.

Market Research Journal

6.

Coca-Cola profile

7.

Annual Report of Coca-cola

8.

www.coca-colaindia.com

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