Post on 06-Apr-2018
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PROJECT REPORT
SUMMER TRANING
ONANALYSIS THE RELATIONSHIP BETWEEN SALES AND CHANNEL OF
DISTRIBUTION OF COCO-COLA IN AGRA
AT
AGRA SALES AND MARKETING SERVICE PVT.LTD
RAMBHAGH, AGRA
FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT
FOR THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
UNDER THE GUIDANCE OF UNDER THE SUPERVISIONAMBRISH SHARMA MR. DARSHAN SAXENA
SUBMITTED BYANJU RATHOREMBA (2010-2012)
Enrolment No.2010MBA020
INSTITUTE OF BUSINESS MANAGEMENTMANGALAYATANUNIVERSITY
33rd
KM STONE, ALIGARH – MATHURA HIGHWAY
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PREFACE
In summer the consumption of soft drinks is more due to hot weather in this time chilled water is
needed everywhere and everybody irrespective of age difference. In the market peoples not only
need water, but they want same 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 day‟s 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.
As an integral part as curriculum all M.B.A a participant are required to undergo practical
summer training in any industry for 6 weeks period. The main objective of this training is to
supplement theoretical knowledge with exposure to practical operation of an organization or
industry. Candidate tale much help from this training when he get the job after completing the
curriculum in this training candidate get the better opportunity to meet the Retailer conjurer,
whole sellers dealer by which candidates gain more and more information about the market. By
this practical experience candidate‟s confidence level gets improved. Consequently we can say
this training provide better understanding of all functional areas of management skills.
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ACKNOWLEDGMENT
Summer training is a bridge connecting the educational qualification and the professional use. It
is the path leading to success by shouldering responsibilities under the careful guidance of
seniors and experienced Personnel without fear and failure.
It gives me immense pleasure to take the opportunity to remember and thanks the personalities
who have involved with this project work. I express my thanks and deep gratitude who are
directly and indirectly associated in the completion of this project.
I would like to thanks to Mr. Darshan Saxena (Training Manager), Agra Sales & Marketing
Services Pvt. Ltd. at Agra 282002 for assigning an extremely challenging project thereby giving
unique opportunity to meaning full contribution of growing and vibrant organization like Coca-
Cola Ltd. guiding throughout the project, without his help the project would have not added
enough value. I am extremely grateful for the time he spends from his busy schedule.
My sincere thank Director Dr.R.C.Gupta & all my friends for their support and help.
ANJU RATHORE
MBA-III SEM.
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DECLARATION
Anju Rathore of M.B.A.-III semester hereby declare that sales And Channel Of Distribution Of
Coca-Cola at (Dayalbagh, Balkeshwar, Highway, T P Nagar, RamBagh)
Agra Sales & Marketing Services Pvt. Ltd, UP Tower Sanjay Place Agra-282002, is my
original work.
ANJU RATHORE
M.B.A III SEM
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TABLE OF CONTENTS
Cover Page
Certificates-
Preface/Acknowledgement
Declaration
Contents with page
Chapter1 Beverage& Soft Drink Industry
Chapter 2 Coca cola profile
Chapter 3Project profile & Research Methodology.
Chapter 4 Data Analyses & Interpreter
Chapter 5 Finding & Recommendation
Chapter 6 Conclusion
Annexures-
1-Questionaire
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Chapter- 1
INDUSTRY PROFILE
(THE BEVERAGE & SOFT DRINK INDUSTRY)
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Introduction
Soft drink market size for FY00 was around 270mn cases (6480mn bottles). The market
witnessed 5- 6% growth in the early„90s. Presently the market growth has growth rate of 7- 8%
per annum compared to 22% growth rate in the previous year. The market size for FY01 is
expected to be 7000 mm bottles.
Soft Drink Production area
The market preference is highly regional based. While cola drinks have main markets in metro
cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in
southern states. Sodas too are sold largely in southern states besides sale through bars. Western
markets have preference towards mango flavored drinks. Diet coke presently constitutes just
0.7% of the total carbonated beverage market.
Growth promotional activities
The government has adopted liberalized policies for the soft drink trade to give the industry a
boast and promote the Indian brands internationally. Although the import and manufacture of
international brands like Pepsi and Coke is enhanced in India the local brands are being
stabilized by advertisements, good quality and low cost.
TYEPS
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.
Fountains also dispense them in disposable containers Non-alcoholic
soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
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The market can also be segmented on the basis of types of products into cola products and non-
cola products. Cola products account for nearly 61-62% of the total soft drinks market. The
brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc.
Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of
flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.
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SOFT DRINK INDUSTRY
Barbara Murray explained the soft drink industry by stating, “For years the story in the
nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop
fight has topped out, the industry's giants have begun relying on new product flavors…and
looking to noncarbonated beverages for growth.” In order to fully understand the soft drink
industry, the following should be considered: the dominant economic factors, five competitive
sources, industry trends, and the industry‟s key factors. Based on the analyses of the industry,
specific recommendations for competitors can then be created.
Dominant Economic Factors
Market size, growth rate and overall profitability are three economic indicators that can
be used to evaluate the soft drink industry. The market size of this industry has been changing.
Soft drink consumption has a market share of 46.8% within the non-alcoholic drink
industry, illustrated in Table 1. Data monitor (2005) also found that the total market value of soft
drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009.
Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft
drink industry is lucrative with a potential for high profits, but there are several obstacles to
overcome in order to capture the market share.
The growth rate has been recently criticized due to the U.S. market saturation of soft drinks.
Datamonitor (2005) stated, “Looking ahead, despite solid growth in consumption, the
global soft drinks market is expected to slightly
decelerate, reflecting stagnation of market prices.” The change is attributed
to the other growing sectors of the non-alcoholic industry including tea and coffee
(11.8%) and bottled water (9.3%). Sports drinks and energy drinks are also
expected to increase in growth as competitors start adopting new product lines.
Profitability in the soft drink industry will remain rather solid, but market saturation
especially in the U.S. has caused analysts to suspect a slight deceleration of growth in the
industry (2005). Because of this, soft drink leaders are establishing themselves in alternative
markets such as the snack, confections, bottled water, and sports drinks industries (Barbara
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Murray, 2006c). In order for soft drink companies to continue to grow and increase profits they
will need to diversify their product offerings.
The geographic scope of the competitive rivalry explains some of the economic features
found in the soft drink industry. According to Barbara Murray (2006c), “The sector is dominated
by three major players…Coca-Cola is king of the soft drink-empire and boasts a global market
share of around 50%, followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.” Aside
from these major players, smaller companies such as Corporation and National Beverage
Company make up the remaining market share. All five of these companies make a portion of
their profits outside of the United States. Table 3 shows that the US does not hold the
highest percentage of the global market share, therefore companies need to be able
to compete globally in order to be successful.
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Coca-Cola has a similar distribution of sales in Europe, North America, and Asia. On the
other hand, the majority of PepsiCo‟s profits come from the United States (see Table 5).
Compared to PepsiCo, Cadbury Schweppes has a stronger global presence with their global mix
(see Table 7). Smaller companies are also trying to establish a global presence. Cott Corporation
is a good example as indicated in Table 8. The saturation of the US markets has increased the
global expansion by soft drink leaders to increase their profits.
The ease of entry and exit does not cause competitive pressure on the major soft drink
companies. It would be very difficult for a new company to enter this industry because they
would not be able to compete with the established brand names, distribution channels, and high
capital investment. Likewise, leaving this industry would be difficult with the significant loss of
money from the fixed costs, binding contracts with distribution channels, and advertisements
used to create the strong brand images. This industry is well established already, and it would be
difficult for any company to enter or exit successfully.
Three leading companies have prominent presence in the soft drink industry. The leaders include
the Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the Coca-Cola annual
report (2004), it has the most soft drink sales with $22 billion. The Coca-Cola product line has
several popular soft drinks including Coca-Cola, Diet Coke, Fanta, Barq‟s, and Sprite, selling
over 400 drink brands in about 200 nations (Murray 2006a). PepsiCo is the next top competitor
with soft drink sales grossing $18 billion for the two beverage subsidiaries, PepsiCo
Beverages North America and PepsiCo International (PepsiCo Inc., 2004).
PepsiCo‟s soft drink product line includes Pepsi, Mountain Dew,
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and Slice which make up more than one quarter of its sales. Cadbury
Schweppes had soft drink sales of $6 billion with a product line consisting of soft
drinks such as A&W Root Beer, Canada Dry, and Dr. Pepper (Cadbury
Schweppes, 2004).
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ORIGIN AND DEVELOPMENT OF THE INDUSTRY
The history of soft drinks began with the end of the last century. It‟s back to the civil war
in USA in 1860. at that time people were suffering from many diseases.
Problem at that time was how to cure all these diseases since no remedy was present at
that time. It was a big question for American people. So in 1885 Mr. Jihn Plmwartion, who lived
in Antonica, made a drink and got it registered with the name French wine cola in the beginning
this drink was made with mixture of cocaine and alcohol but later on it was converted and
changed into a soft drink
The drinking of either natural or artificial mineral water was considered a healthy
practice. American pharmacists, who were selling most of the mineral waters, started to add
medicine and other flavored herbs to this drink. The early drug stores with their sod fountains
became popular part of American culture.
Drink bottle tops. The bottles were under a lot of pressure from the gas. Inventors were
trying to find the best way to prevent the carbondioxide from escaping. In 1892, the crown cork
bottle seal was presented by William Painter, a Baltimore machine shop operator. It was the first
very successful method of keeping the bubbles in the bottles. In 1899 the first patent was issued
for a glass blowing machine for the automatic production of glass bottles. Earlier glass bottles
had all been hand blown. Four years later, the new bottle blowing machine was in operation. It
was first operated by the inventor, Michael J. Owens, an employee of Libby Glass Company.
Within a few years, glass bottle production increased from 1500 bottlesa day to 57000 bottles a
say.
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GROWTH AND PRESENT STATUS OF THE INDUSTRY
The cola war in India increases everyday between coca cola and Pepsi. These two soft
drink are trying to overcome and white wash each other from the soft drink market. For that
these companies are promoting their products in different ways. No other soft drink company can
remain the market for the long time before these two companies.
The war started when coca cola broadcasted an ad film featuring Mr. perfectionist Amir
Khan. In the ad film Amir‟s slogan was “Thanda Matlab” Coca Cola” which was most liked by
the youth and they start asking for Thanda instead of Coca cola. After that also Amir came in
different roles and slogans such as “ yara Da Tushun”, “Sir Utha ke piyo”and “Pandav kitne
the….. Paanch”. These all ad films became very popular among youth. In respond to that Pepsi
also made an ad film and got it broadcasted. In that ad film two beach bums, played Fardin Khan
and Rahul Khanna decides to take jobs in two shacks, one selling Pepsi and the other selling
coke. The Pepsi seller is overcrowded with consumers while the coke seller stands idle. An
exchange with a young child who repeatedly buys Pepsi for a friend reveals that the friend is the
consumer less coke vendor who uses Thanda in the sense of declining. When he calls out, “cold
business means…….‟ The young child shouts, “coca cola”
Since that commercial appeared, the gloves have been off, escalating the two brands‟
usual rivalry to incendiary heights as customers watch in amusement.
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FUTURE OF THE INDUSTRY
Maximum consumer today, wants chilled soft drinks. It does not matter to them whether
it is Coke or Pepsi. The things matter to the consumer is that the liquid should be chilled and
testy.
It was noticed that both same flavor brands Coke and Pepsi are established and reckoned.
So many problems are there and much confusion is into the costumers mind in choosing the
brand. It is also from the finding that 70% of cold drinks consumers are not able to identify the
taste of these clearly and correctly. That indicates some distinct taste of flavor in some soft
drinks should be introduced in place of present flavors presented in the market.
One thing to be noticed from the project and the survey and work that the females nowadays are
consuming cola drinks rather than the lemon or mango drinks and men are found to like the
mango and lemon drinks. So there lies a need of effective and impressive advertisement of coca
cola and introduction of new flavors (such as Cokehas launched its MinuteMaid Pulpy Orange &
Apple.)
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OBJECTIVES
1. To find out sale of coca cola and channel of distribution .
2. To know share of coca cola the market
3. To know the retailer view about the product.
4. To know the effectiveness of the distribution channel of coke.
(a). company →distributer →dealer →retailor → customer.
(b). company →Distributor →company vehicle→retailor→customer.
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Chapter- 2
COMPANY PROFILE
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History of Coca-Cola
Birth of refreshing idea
The product that has given the world its best-known taste was born in Atlanta, Georgia,
on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for
Coca-Cola®, and carried a jug of the new product down the street to Jacobs'
Pharmacy, where it was sampled, pronounced "excellent" and placed on sale for five
cents a glass as a soda fountain drink. Carbonated water was teamed with the new
syrup to produce a drink that was at once "Delicious and Refreshing," a theme that
continues to echo today wherever Coca-Cola is enjoyed.
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Thinking that "the two Cs would look well in advertising," Dr. Pemberton's partner
and bookkeeper, Frank M. Robinson, suggested the name and penned the now famous
trademark "Coca-Cola" in his unique script. 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-painted oilcloth signs reading "Coca-Cola"
appeared on store awnings, with the suggestion "Drink" added to inform passersby
that the new beverage was for soda fountain refreshment. During the first year, sales
averaged a modest nine drinks per day.
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 Atlantan with great
business acumen, Mr. Candler proceeded to buy additional rights and acquire complete
control.
Learn the rest of the history by selecting another chapter from the drop-down menu on
the right.
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COCA-COLA FIRST BOTTLED
Coca Cola began as a frenetic product but candy merchant Joseph A. Biedentrnn of Mississippi
was looking for a way to serve this refreshing beverage at picnics. Tie began offering bottled
Coca – Cola, using syrup shipped from Atlanta, during an especially, busy summer in 1894.
In 1899, large scale bottling become possible when as concluder granted exclusive bottling rights
to Joseph B. whiter head and Benjamin F. Thomas of Chattanooga, Jenacessec. The contract
market the beginning of the Coca cola Company‟s unique intendment bottling system that
remains the formation of the company soft drink operations.
Back then, sod bottles were all very similar and Coca-Cola has many imitators, which consumers
would be unable to identify until they took a sip.
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The answer way to create a distinct bottle for Coca Cola. As a result the genuine Coca Cola
bottle with the contour shape now known the world way developed in 1915 by the red Glass
Company.
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PRODUCT ADVANCEMENT
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AROUND THE WORLD
Although Coca-Cola® was first created in the United States; it quickly became popular wherever
it went. Our first international bottling plants opened in 1906 in Canada, Cuba and Panama, soon
followed by many more. Today, we produce more than 400 brands in over 200 countries. More
than 70 percent of our income comes from outside the U.S., but the real reason we are a truly
global company is that our products meet the varied taste preferences of consumers everywhere.
Coca-Cola is recognized by 94% of the world‟s population.
Approximately 10,450 Coca-Cola brand drinks are consumed around the world each second of
every day
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Neville Isdell
Chairman, Board of DirectorsThe Coca-Cola Company
Neville Isdell is chairman of the Board of Directors of The Coca-Cola Company.
Under a leadership succession plan announced in December 2007, Muhtar Kent (then president
and COO) succeeded Mr. Isdell as CEO (effective July 1, 2008), and Mr. Isdell continues to
serve as chairman of the Board through April 2009. He is the 12th chairman of the Board in the
history of the Company.
A native of Ireland, Mr. Isdell joined The Coca-Cola Company in 1966 with the local bottling
company in Zambia. In 1972, he became general manager of Coca-Cola Bottling of
Johannesburg -- the largest Coca-Cola bottler in Africa. Mr. Isdell was named region manager
for Australia in 1980. In 1981, he became president of the bottling joint venture between The
Coca-Cola Company and San Miguel Corporation in the Philippines, where he oversaw the
turnaround and renewal of the Coca-Cola business in that key country.
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Muhtar KentChairman of the Board and Chief Executive OfficerThe Coca-Cola Company
Mr. Kent joined The Coca-Cola Company in Atlanta in 1978 and has held a variety of marketingand operations roles throughout his career. In 1985, he was appointed General Manager of Coca-Cola Turkey and Central Asia. From 1989 to 1995, he served as President of the Company's EastCentral Europe Division and Senior Vice President of Coca-Cola International, withresponsibility for 23 countries.
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Mission, Vision & Values
Our mission, vision and values outline who we are, what we seek to achieve, and how we wantto achieve it. They provide a clear direction for our Company and help ensure that we are allworking toward the same goals.
Everything we do is inspired by our enduring Mission:
• To Refresh the World...in body, mind, and spirit.
• To Inspire Moments of Optimism...through our brands and our actions.
• To Create Value and Make a Difference...everywhere we engage.
To achieve sustainable growth, we have established a Vision with clear goals:
• People: Being a great place to work where people are inspired to be the best they can be.
• Planet: Being a responsible global citizen that makes a difference.
• Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfypeoples' desires and needs.
• Partners: Nurturing a winning network of partners and building mutual loyalty.
• Profit: Maximizing return to shareowners while being mindful of our overallresponsibilities.
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THE PRESENT POSITION COKE IN INDIA
Coke is a house holds name and is the lips of every one. In present time every person knows the
name of coca cola since India is one of biggest market and sultry summer from March the end of
October and huge population has immensely helped in the sales the sales of coke in India and its
making it more economical.
Last years, the market share of Coca Cola was not specific. In this year company‟s top
management adopted new policy and decreased the rate of all brands of coke. By this decision
top management determined the rate of 300 ml / 10Rs. And they made a new brand of 200 ml
determine the rate of this brand 5Rs. By which medium size family and lower level family can be
taken the enjoy of coke. By this decision company‟s marketing share has been increased.
In present time coke is captured approximate 70% market share in cold Drinks line. Now coke
has defeated all the soft drinks company. According to service and according to advertising coke
has appropriate position.
It has now emerged as the winner and has a good image in the market.
Coke has even sponsored the wills cricket world cup 96 at an estimated cost of 26 crores.
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ORGANIZATION STRUCTURE IN COCO-COLA,INDIA
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The manufacturing of the products of Coca-Cola involves the following steps:
Water is received from the River Cauvery and it passes through the water treatment
plant, further passing through the sand filter and the activated carbon filter, so as to
attain pure cleansed water.
In the syrup room, the concentrate received from another bottling plant situated at
Pune, is blended with the sugar syrup.
Once both the water and the final syrup are ready, they are both mixed together and
sent to the carbonator section where Carbon Dioxide is added to the mixture to form
the final product.
On the other hand, simultaneously, the returnable glass bottles are depalletized,
inspected and washed for the purpose of filling in the final product in it. This step
does not take place in the PET bottle line as the bottles once used are disposed.
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PRODUCTION PROCESS OF COCA-COLA
Coca-Cola Created in special concentrate plants, it has delivered, held and used under strict
controls to maintain its integrity. Since water is a key component to all our beverages, its quality
is critical. Our secret formula is... still secret! That is right; the secret formula remains a mystery
to the millions of people in nearly 200 countries that enjoys our refreshing beverages everyday.
Even though Company cannot tell the secret, Drinkers can be sure that "LIFE TASTES GOOD"
with Coca-Cola but company discloses its production process i.e.
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KNOWLEDGE ABOUT FLAVOR
Soft drinks a mixture of co2 +sugar + concerted + soft water
How to prepare soft drinks.
Making of soft drink have the following process.
1. Bottle washer machine - It is a big machine that controls three compartment.
All the empty bottles, which are collected from the market are washed in this
machine and prepare for refilling at new drinks.
2. Water treatment plant – In this machine hard water converted into soft water
which mix with converted and also treated for drinking.
3. Mixer – In this machine prepare mixture of flavor and sugar.
4. Co2 - Paper co2 gas.
5. Filler- In this machine fields the empty bottle soft drinks. This machine have
three nasals one for co2 one for treated soft water and one for flavor. This three
nasals together which we drink in market.
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What is cola?
Originally it was the caffeine extract of cola now grown in Brazil and Syria, a commodity
banned for imports. So Indian manufacturers have to resort to synthetic substitute for it. Thumps
contains coffin extract was not been used parliament recorded that three are no means of
determining whether a cola contains coffin and from what source the manufacturing are there
fore with in their rights to call their drinks cola although its accept once as such depends on its
consumer.
Coca Cola- Coke is caffeine extract of Cola now grown. In Brazil and Syria Coca Cola is the
main flavor of Coke Company. The colour of coca cola beverage is black. It is very much asked
by its user.
Thums UP - It contains caffeine extract and sugar it is also a sub flavor of Coca Cola. It was
Domestic Brand but in present time Thums up came under the Coke Thums up merged in coke.
It is also has some colour beverage. It is also asked by its brand loyal person.
Coke = Sprite Pepsi = 7UP, Dew
Cloudy lemon
Limca comes under the cloudy lemon. It is a basically lemon based drinks contents
no fruit juice contents add flavour. Limca is having very much brand Loyalty in all
other Cold Drinks.
Coke = Limca Pepsi = Lemon Mirinda
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Mango Flavour
Maaza comes under the Mango Flavour. It is a basically mango based drinks make with mango
pulp and sugar. Under coke three types of Maaza Produce.
Coke – mango maaza Pepsi = Mango slice Orange maaza
Pineapple maaza
Orange Flavour
Fanta comes under the orange flavour. It is a basically orange Fanta based pure culd drink. It has
three varity.
Coke – Orange Fanta Pepsi =Mirinda orange
Green Fanta
Water Melon
Soda –
It is basically co2 water base drink . Kinley soda
Mineral water -
Coke =kinley Pepsi =Aquafina
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Chapater-3
SALES &CHANNEL OF DISTRIBUTION
&
Reserch Methadology
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OUT LINE DYGRAM OF DISTRIBUTION CHANNEL OF COCA COLA
Company
Manufacturing goods
Distributors
Dealer Company
Vehicle
Retailer Retailer
Consumer Consumer
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DISTRIBUTION CHANNEL
Distribution means supply of goods from company to its ultimate user. After manufacturing the
product the important work for the is to provide its goods to its ultimate user at the right time and
when manufacturing process is finished then marketing work will be started by the marketing
Department which adopts the policy for providing goods to the consumer at the right time and
place. Distribution means the way by which the product reach to the hand of consumer these all
process comes under the Distribution of Network. Good distribution network is essential for
more selling and customer satisfaction. If customer or retailer is not satisfied with your
distribution net work, it reflects that company‟s Distribution is not good and some thing is wrong
any where.
The Distribution of Coca Cola is one of the best. Companies don‟t want to take any type of risk
so they have made the distributor in different 2 areas. Distributor take the flavors from the
company and deposit all the payment in advance by this process company get all the money at
the right time. Distributors establish all the goods in ware house and company appoints 2 or 3
executive for marketing. Executives get the salary from company. But sales man helper, loader,
appointed by the Distributor. Distributor is liable to give the salary to the sales man, helper,
loader and clerk. The sales men do the work under the pressure of Executive.
1) By the company vehicle
From the ware house company launch the flavors in the market. The flavors reach in the market
to the retailer by two medium.
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1) Dealer
Company vehicle and dealer both provides the flavors to the Retailer.
Retailer sales the flavor to the consumer. This is the good marketing strategy.
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COKE’S MARKETING STRATEGIES
Coke decides on its marketing strategies at a national level and lends them a local flavor. For
example, while festival mood plays a strong role in marketing, it is activated for Durga Puja in
Calcutta; Dandiya in Gujarat, etc., Coke has its focus on the youth market in India.
As a first step toward catching the attention of the youth, coke signed on cricket heroes Saurav
Ganguly and JavagalSrinath. It slowly started talking about youth passions like cricket, films,
festivals and food. Soon the advertisements started giving the message, “Eat Cricket, Sleep
Cricket, Drinkonly Coca-Cola” And now it has started modifying film hits to frame catch lines
that appeal to the youth. This particular strategy has workedwell for coke.
Coke is focused on distribution to ensure that its products are within customer’s reach.
And it saves its focus has begun to pay it dividends. As per mid-1998 figures coke is selling
as many bottles in the hinterland of Punjab as it does the fourmetros
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COCA COLA GLOBALIZATION STRATEGIES
The coca-cola company is global player and approximately 70 % of its volume and 80 % of its
profit come from outside the United States of America. Although it was perceived as a
standardized brand across the world, coca-cola had been quietly fine turning its international
marketing strategies to suit the needs of individual national markets. Only the brand coca-cola,
sprite and fanta were marketed globally. In latin America and Europe, where a heavy consumer
preference existed for lemon lime and orange sodas. Coke had developed a wide range of
formulations and flavors to cater the needs of different countries. In ei Salvador and Venezuela, a
version of fanta called fanta kolita a cream soda type of drink became extremely popular.
Similarly, in Indonesia coke had been selling pineapple and banana limca, maaza and thums up
in 1993.
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COKE’S BOTTLING STRATEGIES
In the soft drink business the bottlers are responsible significant extent for ensuring the
availability of the products. Bottlers are supplied with concentrate to which they add aerated
water and bother ingredients before packing and sealing either cans or bottles. Bottlers play a
strategic role in the success of soft drinks companies and this was not far from Goizueta‟s mind.
In 1986 the company merged some of its company owned bottling operations with two large
ownership groups that had been put up for sale. All these bottling activities were combined to
from its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling operations. The Coca-
Cola Company took 49 percent equity stake in Coca-Cola Enterprises enabling it to retain its
own balance sheet.
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ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
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SWOT ANALYSIS
STRENGTH:
Consumers across the globe choose our brands for refreshment more than a billion times every
day because Coca-Cola is...
Company product having a good brand name and trade mark. So that there is no such
problem for convenes the user.
Being a franchise company product trade mark. That‟s why it‟s scope is worldwide.
Coca cola capturing near about 71% market in cold drinks line remaining 29% captured
by its main competitor Pepsi. The reason behind that good supply and its all flavor like
Thumsup, Limca, Fanta, Maaza and Sprite also asked by the user in Agra Area.
Coca Cola good Brand Image not only in India rather all over the world. That‟s why there
is no need of Advertisement.
Company marketing policy is consumer oriented by doing mentioned M.R.P. and
manufactured date.
Company having expert management so that company can provides better goods &
service for the ultimate user.
Coca Cola has been constantly innovating in terms of products to offer such incisive products to
every user segments which cater more than 1 billion people per day.
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Coca Cola has a very innovative Research and Development divisions to develop new tastes and
flavours.
Over 55000 employees working for one organization across the globe.
So, these standards are the strengths of Coca Cola Company.
WEAKNESS:
It is very difficult to any company to maintain its operation in more than 200 countries
successfully, So Coca Cola is also phasing some problems which shows its weakness in some
part of its operational countries which are as follows :
Weak distribution network, particularly in some part of India.
Company is also lagging behind in products like Lays and Lehar as compare to its
main competitor PepsiCo.
Company has offer very few products in India from its impressive product profile
of more than 400 products across the globe.
Coca Cola have incurred losses in some part of world.
Some products are expensive as compared to its close competitors.
The Coca-Cola Company, alone, could never reach and serve all of its consumers.
The Company relies on numerous groups to work together to make our brands
available to consumers throughout the world.
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Coca Cola has a very innovative Research and Development divisions to develop new tastes and
flavours.
Over 55000 employees working for one organization across the globe.
So, these standards are the strengths of Coca Cola Company.
WEAKNESS:
It is very difficult to any company to maintain its operation in more than 200 countries
successfully, So Coca Cola is also phasing some problems which shows its weakness in some
part of its operational countries which are as follows :
Weak distribution network, particularly in some part of India.
Company is also lagging behind in products like Lays and Lehar as compare to its
main competitor PepsiCo.
Company has offer very few products in India from its impressive product profile
of more than 400 products across the globe.
Coca Cola have incurred losses in some part of world.
Some products are expensive as compared to its close competitors.
The Coca-Cola Company, alone, could never reach and serve all of its consumers.
The Company relies on numerous groups to work together to make our brands
available to consumers throughout the world.
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OPPORTUNITIES:
A compny which serves over 1 billion people per day in more than 200 countries with refreshing
series of more than 400 products has always have great opportunities to grab. Some of these
opportunities are :
Countries like India, company have great opportunities to serve over 1 billion
people.
In India company have more than 60 percent market share only with 11 products,
So here big opportunity to offer more than 390 products from its product basket.
THREATS:
A company which serves in more than 200 countries is always prone to threats. Some of these
threats are :
Government Policy.
Market Competitors mainly PepsiCo.
Dependent over distributor for distribution.
Wrong weather forecasting for production.
Cultural Restrictions.
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PROMOTION: THE COCA-COLA WAY
Goal for the 21st century
“TO PLACE COCA-COLA WITHIN AN ARM‟S REACH OF DESIRE.
Consumer activity clusters :-
Grocery shopping
Other shopping & services
Eating and drinking
Entertainment / Recreation / Leisure
Travel / Transportation / Hospitality
Educational
At Work
The 3A’s:-
The strategy for reaching in creasing numbers of consumers in India is based on the belief that
consumers will buy our products if they are Available, Affordable and Acceptable.
Strategies for the 3A‟s
Focus on the consumer and customer.
To provide quality customer services, and caring about the quality of performance in
respective jobs.
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Caring enough about what we do, to it the best we know how.
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 good. Let us explore
the specific ways in which the Coca-Cola system addresses each of the 3A‟s :-
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, marketing.
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 coca-cola brand products the beverage choice for any occasions depends on a variety of
strategies to reach the target audience. The common strategies adapted to effect acceptability
were though sponsorships, promotion youth market activities, community programs, and other
activates.
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KNOW THE SCIENCE BEHIND OUR QUALITY
A Tour Through Our Scientific Manufacturing Processes:
At The Coca-Cola Company, through our globally accepted and validated manufacturing
processes and Quality Management Systems, we ensure that our manufacturing facilities are
equipped to provide the consumer with the highest possible quality beverage each time. Let us
now take you through the processes and Quality Assurance Programs followed by our world-
class manufacturing facilities in India.
Testing Source Water for Plant Site Selection:
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Even before the plant is constructed; the site is selected based on the availability of source water
meeting the portability quality standards. At all our carbonated and non-carbonated soft drink
manufacturing locations, the source water is tested for all requirements of potable drinking
water. The analysis is always conducted by independent third party accredited laboratories. The
source water is then properly protected and re-tested periodically to ensure conformance to
portability standards.
The water is then drawn through sealed pipelines into the storage tanks in secured water
treatment areas of the manufacturing plant.
Water Treatment - Know The Chemistry Of Purity:
1. The first step in the manufacturing of soft drinks is the disinfections of water using the
globally approved procedure of chlorination. This treatment ensures the destruction of micro-
organisms including pathogens and oxidation of heavy metal ions and organic impurities.
2. The second step is the filtration at the molecular level, which is achieved either by
coagulation/flocculation or reverse osmosis. Contaminants commonly removed by this process
include:
- Dirt, clay and any other suspended matter in the water.
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Microbial matter (including bacteria, yeast, moulds, virus, protozoa).
- Heavy metals and compounds which may cause an off-taste.
When coagulation/flocculation is used, colloidal materials and suspended particles are removed
by settling plus enhanced filtration through multi-media. If needed, alkalinity reduction may also
be achieved by lime softening or ion exchange filters.
3. The third step to stop potential contaminants is water purification using granular activated
carbon filters. The granular activated carbon, with its large and porous surface area, ensures
effective removal of trace levels of organic compounds (including pesticides and herbicides),
colour, off-taste and odour-causing compounds using the principle of absorption.
4. The last step is polishing filtration, which is passing water through high efficiency 5-micron
filters to ensure every drop of treated water is free from any activated carbon fines and is safe for
use in beverages.
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The Purity Of Our Sugar Is Crystal Clear:
Similar to the stringent norms used for water, we buy high-grade sugar from authorized sugar
mills in India and this is treated with a globally acclaimed carbon treatment which removes all
impurities and is then used for the preparation of purified sugar syrup. This sugar syrup is then
blended with the soft drink concentrate..
Carbon Dioxide Meeting International Purity Standards :
Carbon-dioxide from authorized suppliers meeting international purity standards is procured,
which goes through stringent quality control checks before being used in the beverage process.
The three ingredients of syrup, treated water and carbon-dioxide are blended as per The Coca-
Cola Company's specifications.
The Automated Bottling Process:
The glass bottles returned from the market are thoroughly cleaned and sanitized with specially
formulated cleaning agents at high temperature that use sophisticated state-of-the-art Bottle
Washers or Bottle Rinsers(in case of PET). These bottles are then transported to the filler using a
fully automated conveyor system after a thorough visual inspection. The beverage is then filled
into glass containers or virgin food grade PET bottles using a high-speed automated filling
machine. The entire filling operation is fully automated and untouched by human hands.
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The bottles are finally capped/crowned, date coded and packed into crates/cartons
to make them available to our consumers.
The complete manufacturing process has a well defined and structured Quality
Control and Assurance Program.
All the manufacturing facilities employ qualified, experienced and trained
professionals for manufacturing and testing of our products.
All the bottling facilities follow the Good Manufacturing Practices requirements as
applicable to the food industry. All manufacturing equipment fulfil the stringent
requirements of GMP and sanitary design.
The entire quality management system of each plant is documented, managed and
continually improved through a world-wide accepted system of TCCQS (The
Coca-Cola Quality System).
Internal & External Audit Monitor Compliance Clauses:
The Company also has a strong internal audit system to monitor compliance to international and
local standards. The manufacturing facilities also get audited by accredited external audit
agencies against quality management standards.
This internal checks and balances system works virtually in every aspect of our
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business and gives us the confidence to reassure our promise to consumers every
day.
At The Coca-Cola Company, we are committed to delivering high quality products
to our customers and consumers
throughout the globe. In each and
every sip.
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OBSERVE THE PROBLEM
Under this investigate by own observation without interviewing the respondent. This was
adopted by me because observation data can be collected more correctly. It depends upon ability
of investigator.
COLLECT THE DATA
After collecting the data I considered that what the problem is for the company and when
company ants to know his weakness.
ANALYSING THE PROBLEM
After collecting the problem I analyzed the problem such as how many problems are
general and how many are different from others and how many problem is considerable and
solvable.
TAKE SOLUTION
After analyzing the problem I found that 80% problems were general and I found 20% problem
personal and I also found 10% problem as Genuine which is considerable and solvable. General
solution solve the general problem remaining 10% problems solution we found and then after we
implement the solution.
IMPLEMENTATION OF SOLUTION
After founding the solution we apply the solution and satisfy the customer & consumer.
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Research METHODOL
OGY
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Research Design : The research design which has been used in the project report is
descriptive in nature.
SIZE OF SAMPLE:
The survey was conducted of 100 respondents
Types of data:
Primary Data
Secondary Data
Primary Data:
Tools to use in collection of primary data - :
Questionairre
Secondary Data:
Internet, Literatures, Magazines
Area of Study:
Dayalbagh,Balkeshwar- Agra
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USE OF RESEARCH METHODOLOGY
Without using research methodology to find new fact and knowledge is not possible.
First of all question is arises what is research -
“Research as a scientific and systematic search for pertinent information on a specific topic. In
fact research is an art of scientific investigation”
METHOD ADOPTING IN THE RESEARCH
Personal interview method
Adopted the personnel personal interview method in this method we made a questionnaire with
this questionnaire we used to go in the market and see the customer one by one. First of all we
used to give the introduction with smile enthusiastic and with proper eye contact and demand to
give 2 or 3 minute to fill this questioner and then after we started to put the questionnaire at the
retailer and completed the questionnaire. This method is most appropriate method for collecting
the data. By this method researcher get the actual report
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Chapter-4
Data Analysis
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What is the accuracy of selling order of coke?
A-50 below
B-50-80
C-100 Above
Interpretation-
The accuracy of selling order of coke 50% to 80 %.
100%
80%
50%
Below
50-80
Above
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MARKET SHARE COCA COLA & PEPSI
a-Coke = 60%b-Pepsi = 40%
Interpretation-
In Present situation of Coca Cola is very good in the market. The company has good market
share app.60% and remains 40% market share covered by his close competitor Pepsi in this
Area.
60%
40%
Coke Pepsi
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The Source of procurement coca cola product
A-Dealer =25%
B-Whole Seller =35
C- Company vehicle = 40
Interpretation-
The retailer is purchasing the Source of procurement coca cola product by the company.
40%
5%
25%
Dealer
Whole seller
Com an vehicle
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How frequently sales person come to take order from retailer ?
A-Daily
B-week.
Interpretation-
The sales Person come to take order from retailer weekly
60%
40% Daily
Weekly
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Are you satisfied with the behavior of distributor
sales person.
A-Yes
B- No
Interpretation-
70% of the retailers are satisfied by the behaviors of sales person.
70%
30%
Yes no
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Do sales person provide complete information about new product
daily schemes.
A-Yes
B -No
Interpretation-
75% of The sales person provide complete information about new product daily schemes
75%
25%
yes no
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Chapter-5
FINDINGS ,LIMITATION
&
RECOMMENDATIONS
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FINDINGS
1. The accuracy of selling order of coke 50% to 80 %
2.Market share of coca cola 60%
3.The sales person come to take order from retailer weekly
4.70% of the retailers are satisfied by the behaviors of sales person.
5.The sales person provide complete information about new product daily schemes
6. The retailer is purchasing the Source of procurement coca cola product by the company
7.The retailer prefer to purchase coca cola brands on demand
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LIMITATIONS
1. The survey is only limited to MG-1 Agra
2. The outlets in each area are kept limited due to time and financial constraints.
3. The company did not provide any financial support for the project.
4. I had lack of deep knowledge about the product of the local market.
5. The time allowed for the project very short (8 weeks). It was very tough to study deeply
in that short period.
Psychology and Temperament of the respondent at the time of survey should have direct impact
on the responses. E.g. some person is very sensitive and some are very tolerant
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RECOMMENDATIONS/ SUGESSATION
Company should prepare future plan for maintaining selling in market. Because company‟s
competitor can increase and can capture the market.
Company should provide special benefit to the retailer. Other wise his interest will go down
from cold drinks.
Present time competition is not high in this line because it‟s competitor is only Pepsi. So that
company can do compromise with Pepsi and both can increase product‟s M.R.P.
Company should appointed a special representative for listening retailer‟s problem and solve
them. He can also find out some shortcomings of salesman & others.
Sale of cold drinks is mostly dependent on retailer. Hence his satisfaction is needed.
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Defected goods should be returnable or changeable.
Good execution is a main factor in more selling good execution improves selling.
Sales executive & salesman relation and good behavior also provide effective guidelines in
increasing selling.
For more selling company‟s person should fulfill his commitment.
In Cold Drinks line brand loyalty found only 20%. So that which will be visible that will
saleable.
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Chapter-6
CONCLUSION
1. From the analysis of the data, it can be concluded that the market share of Coca-Cola is
more than the market share of Pepsi. The demand of Coca-Cola‟s product is more with
the comparison of Pepsi product.
2. Replacement procedure of faulty bottles is very low. It promotes retairs dissatisfaction.
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3. It can be noticed that the company has spent a lot on its advertising and sales promotion, its
sales are better.
4. The only thing that is lacking to some extent is service. So by enhancing the quality of service
and also by modifying some of the routes of distribution, the company can gain more turnovers
from the market what the company just doing is just concentrating on increasing the sales
without bothering the relationship with the retailers. So, instead of relying on volume of sales,
the company should try to build a long-lasting relationship with the retailers.
BIBLIOGRAPHY
Interet site
www.cocacola.com
www.cocacolaindia.com
www.pepsico.com
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News items of English dailies,
The Times of India
The Hindustan Times.
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QUESTIONNAIRE
Market research on Behalf of Coca-Cola
Topic - Sales & Distribution Channel of Coca-Cola
Company - Agra Sales & Marketing Services Pvt. Ltd, UP Tower
Sanjai Place Agra-282002
1. Name of the outlet ………………………………………………………….. 2. Contact Person………………………………………………………………
3. Address ………………………………………………………………
………………………………………………………………
4. Telephone No. ………………………………………………………………
5. What is the accuracy of selling order of coke?
a-50 below [ ] b-50-80 [ ] c-100 [ ]
6. What is the Source of procurement
a-Dealer [ ] b-Whole Seller [ ] c- Company vehicle [ ]
7. How frequently sales person come to take order from retailer?
a-Daily [ ] b-week [ ]
8. Are you satisfied with the behavior of distributor sales person.
a-Yes [ ] b-No [ ]
9. Do sales person provide complete information about new product daily schemes.
a-Yes [ ] b -No [ ]