"Analysing The Opportunities for Horizontal Expansion of Coca-Cola Company"

Analyzing The Opportunities For Horizontal Expansion

THE FMCG INDUSTRY- A BRIEF INSIGHT

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers

generally put less thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many

players had been facing severe problems on account of increased competition from small

and regional players and from slow growth across its various product categories. As a

result, most of the companies were forced to revamp their product, marketing,

distribution and customer service strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed

significantly. With the liberalization and growth of the Indian economy, the Indian

customer witnessed an increasing exposure to new domestic and foreign products through

different media, such as television and the Internet. Apart from this, social changes such

as increase in the number of nuclear families and the growing number of working couples

resulting in increased spending power also contributed to the increase in the Indian

RNS Institute Of Technology, Bangalore


consumers' personal consumption. The realization of the customer's growing awareness

and the need to meet changing requirements and preferences on account of changing

lifestyles required the FMCG producing companies to formulate customer-centric

strategies. These changes had a positive impact, leading to the rapid growth in the FMCG

industry. Increased availability of retail space, rapid urbanization, and qualified

manpower also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats

of the FMCG industry by focusing on rural markets, direct distribution, creating new

product, distribution and service formats. The FMCG sector also received a boost by

government led initiatives in the 2003 budget such as the setting up of excise free zones

in various parts of the country that witnessed firms moving away from outsourcing to

manufacturing by investing in the zones.

Though the absolute profit made on FMCG products is relatively small, they generally

sell in large numbers and so the cumulative profit on such products can be large. Unlike

some industries, such as automobiles, computers, and airlines, FMCG does not suffer

from mass layoffs every time the economy starts to dip. A person may put off buying a

car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of

global market dip, because they generally satisfy rather fundamental, as opposed to

luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth

largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor,

making up 32% of the sector, is the South Indian region. It is predicted that in the year

2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the

biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL,

Monthly Circular, March 2008)



The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,

Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products)

and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps,

Colgate, Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents),

Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners,

Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major

players being; Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks,

Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods,

Chocolates,

Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat,

Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major

players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and

Dabur.

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB.



COMPANY PROFILE

2.1 BACKGROUND AND INCEPTION OF COCA-COLA:

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer,

marketer and distributor of non-alcoholic beverage concentrates and syrups, used to

produce nearly 450 beverage brands. It sells beverage concentrates and syrups to bottling

and canning operators, distributors, fountain retailers and fountain wholesalers. The

Company’s beverage products comprises of bottled and canned soft drinks as well as

concentrates, syrups and not-ready-to drink powder products. In addition to this, it also

produces and markets sports drinks, tea and coffee. The Coca-Cola Company began

building its global network in the 1920s. Now operating in more than 200 countries and

producing nearly 450 brands, the Coca-Cola system has successfully applied a simple

formula on a global scale: “Provide a moment of refreshment for a small amount of

money- a billion times a day.”

The Food and beverages sector is witnessing recently large-scale transformation,

huge advertisement spending, awareness campaign about the products and brands. Key

factors to success are distribution and advertising. A large MNC in the food and

beverage industry may be covering as many as 10 lakhs outlets across the country with

the help of thousands of distributors.

The Coca-Cola Company and its network of bottlers comprise the most

sophisticated and pervasive production and distribution system in the world. More than

anything, that system is dedicated to people working long and hard to sell the products

manufactured by the Company. This unique worldwide system has made The Coca-Cola

Company the world’s premier soft-drink enterprise. From Boston to Beijing, from

Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought

pleasure to thirsty consumers around the globe. For more than 123 years, Coca-Cola has

created a special moment of pleasure for hundreds of millions of people every day.



Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the

year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-

legged brass kettle in his backyard. He first “distributed” the product by carrying it in a

jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at

the soda fountain. Carbonated water was teamed with the new syrup, whether by accident

or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme

that continues to echo today wherever Coca-Cola is enjoyed.

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

the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide

even today. He suggested that “the two Cs would look well in advertising.” The first

newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty

citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs

reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to

inform passersby that the new beverage was for soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The

first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs.

Red has been a distinctive color associated with the soft drink ever since. For his efforts,

Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never

realized the potential of the beverage he created. He gradually sold portions of his

business to various partners and, just prior to his death in 1888, sold his remaining

interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891,

Mr. Candler proceeded to buy additional rights and acquire complete ownership and

control of the Coca-Cola business. Within four years, his merchandising flair had helped

expand consumption of Coca-Cola to every state and territory after which he liquidated

his pharmaceutical business and focused his full attention on the soft drink. With his

brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other

associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company.

The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the

United States Patent Office on January 31, 1893.



The business continued to grow, and in 1894, the first syrup

manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in

Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years

after The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual

report to share owners that “Coca-Cola is now drunk in every state and territory in the

United States.”

As demand for Coca-Cola increased, the Company quickly outgrew its

facilities. A new building erected in 1898 was the first headquarters building devoted

exclusively to the production of syrup and the management of the business. In the year

1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert

W. Woodruff became the President of the Company in the year 1923 and his more than

sixty years of leadership took the business to unsurpassed heights of commercial success,

making Coca-Cola one of the most recognized and valued brands around the world.

BOTTLERS:

One of the main ways by which the Coca-Cola system throughout the world

maintains a global brand with a local approach is its Bottling system. Since the Coca-

Cola Company has over 2,400 products spread over 200 countries, its bottling system has

to be the best. Before any Coca-Cola product reaches the consumer in any part of the

world, it is produced, sold and distributed by a bottler from that region.

The Bottlers form the link between the brand and the customers and their services help

the product reach the customers. The bottlers are local companies which assist the

business to get an indigenous perspective which will help cater to its consumers in a far

better way. Each bottler maintains a different method to serve their respective regions in

an appropriate way.



COCA-COLA INDIA

Coca-Cola India has made significant investments to build and continually

improve its business in India, including new production facilities, wastewater treatment

plants, and distribution systems and marketing equipment. During the past decade, The

Coca-Cola System has invested more than US $1 billion in India, making Coca-Cola one

of the country’s top international investors and in 2003, Coca-Cola India pledged to

invest a further $100 million in its operations.

The Coca-Cola System in India includes 24 Company-owned bottling operations and

another 25 franchisee-owned bottling operations that directly employ 5,500 local people

and create jobs for another 150,000. The Coca-Cola Company and its independent

bottlers have been engaged at the international, national and community levels to support

programs that protect the environment, conserve water, promote education, and provide

healthcare.

2.2 VISION AND MISSION STATEMENT:

Company Mission

Company Roadmap starts with the mission, which is enduring. It declares company’s

purpose as a company and serves as the standard against which company weigh for

actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Company Vision

Company vision serves as the framework for company Roadmap and guides every aspect

of the business by describing what company needs to accomplish in order to continue

achieving sustainable, quality growth.



People: Be a great place to work where people are inspired to be the best they can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate

and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization.

2.3 QUALITY POLICY AND COMPANY VALUE

QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and actions by

continually improving our processes…Every time.”

COMPANY VALUE

Leadership: “The courage to shape a better future”

Passion: “Committed in heart and mind”

Integrity: “Be real”

Accountability: “If it is to be, it’s up to me”

Collaboration: “Leverage collective genius”

Innovation: “Seek, imagine, create, delight”

Quality: “What we do, we do well”



2.4 PRODUCT PROFILE

COCA- COLA

The biggest-selling soft drink in history, and the best-known product in the

world. It is also considered as the World’s most valuable brand. From a humble

beginning in the year 1886, it is now the flagship brand of the largest

manufacturer, marketer and distributor of non-alcoholic beverages in the world.

The word 'Coca-Cola' itself is even thought to be the second most widely

understood word in the world after ‘OK’!

DIET COKE

Introduced in the United States in 1982 and in Britain a year later, 'diet Coke' –

or ‘Coca Cola Light’ as it’s sometimes known - is now sold in 149 countries

across the world, with sales in Britain second only to those of the United States.

Whether diet or light, this is the soft drink for those who live life to the

full and embrace a healthy lifestyle, and it's deliciously sugar free.

THUMS UP

Thums-Up is a leading sparkling soft drink and most trusted brand in India.

Originally introduced in 1977, Thums-up was acquired by Coca Cola

Company in 1993. It is similar in flavor to other colas but has a unique taste

reminiscent of betel nut and is promoted as a masculine and a bold drink.



SPRITE

First introduced in 1961, 'Sprite' is now the world’s leading lemon-lime

flavored soft drink and the No. 4 soft drink worldwide, sold in 190 different

countries! The idea for the name came from Haddon Sundblom’s ‘Coca-Cola’

advertisements featuring ‘the little sprite’ – an elf with silver hair and a big

smile. Millions of people around the world enjoy 'Sprite' for its crisp, clean taste.

FANTA

'Fanta' is the soft drink with the vibrant taste of real fruit flavors. 'Fanta'

became only the second drink - after 'Coca-Cola' itself - to be marketed by

The Coca Cola Company, but was soon available in many different countries.

Originally only orange flavored, 'Fanta' is now produced in 70 different

varieties worldwide, with flavors often derived from the native fruits of the

region where it is being sold. Coca Cola has recently launched the Fanta Apple flavor.

LIMCA

Lime n lemoniLimca, the drink that can cast a tangy refreshing spell on

anyone, anywhere. Born in 1971, Limca has the original thirst choice, of

millions of consumers for over 3 decades. The brand has been displaying

the leading flavor soft drinks in the country. The success formula? The

sharp fizz and lemoni bite combined with single minded positioning of the

brand as the ultimate refresher has continuously strengthened the brand

franchise. Limca energizes refreshes and transforms.



MAAZA

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.

Mango drinks currently account for 90% of the fruit juice market in India.

Maaza currently dominates the fruit drink category and competes with

Pepsi's Slice brand of mango drink and Frooti, manufactured by Parle

Agro. While Frooti was sold in small cartons, Maaza and Slice were

initially sold in returnable bottles. However, all brands are also now

available in small cartons and large PET bottles.

MINUTE MAID

The history of the Minute Maid brand goes back as 1945 when the

Florida Corporation developed orange juice power. The company

developed a process that eliminated 80 percent of the water in 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.



KINLEY

Water, a thirst quencher that refreshes a life giving force that washes all the toxins away.

A ritual purifier that cleanses, purifies, transforms. Kinley water understands

the importance and value of life giving force. Kinley water thus promises

water that is as it is meant to be. Water you can trust to be safe and pure.

GEORGIA

Georgia was launched by the company to address the competition offered by its

substitutes. It is available as tea or coffee and is available in seven sizzling flavors. It

promises a great tasting, consistent, hygienic and affordable cuppa made

available by vending machines.



2.5 AREA OF OPERATION

Coca-Cola is often thought to be produced and distributed around the world

by a single company. In reality, our portfolios of more than 3500 beverages are produced

by a vibrant business system operating in more than 200 countries around the world.

Made up of The Coca-Cola Company and nearly 300 Coca-Cola bottlers, this system

allows us to manufacture and distribute our products to customers and consumers around

the world.

Imagine what it's like to touch 200 countries -- and countless communities -- with

almost everything you do. Associates of The Coca-Cola Company have the opportunity

to experience this firsthand.

Our bottling partners are local companies so they are rooted in their communities,

thinking and acting locally. They are employers, purchasers of local goods and services,

good neighbors and, of course, producers of the world's most popular beverages.

Understand how The Coca-Cola Company works with more than 300 bottlers to produce,

deliver, market and sell products around the world.

In Indonesia, for instance, boats transport Coca-Cola and our other brands among

many hundreds of islands. In the Amazon, where the main road is often the river itself,

waterborne distribution is also common. In the higher elevations of the Andes, Coca-Cola

is sometimes transported by four-legged power. Across much of Africa, bottlers deliver

to thousands of family-run kiosks and home-based stores on which local economies

depend.

That kind of flexibility doesn't just sell beverages; it also helps us respond

immediately in times of need. In the last two years alone, we have delivered hundreds of

thousands of beverages to people touched by the South Asian tsunami, the Pakistan

earthquake, Hurricane Katrina and other natural disasters while our people have

dedicated their personal time and money to helping these communities through their

challenging times. We attain global growth by understanding and being a part of local

communities. Only the presence and partnership of our bottlers can make that happen.

The industry’s complexity has led to the evolution of very different organizational

models. Many food and beverage companies are still organized along local/regional lines,



with a presence in only a limited number of categories, often with a short shelf life. Some

have taken a global, multi-category approach, remaining highly diversified in many

different categories but with a small number of truly global brands. Coca Cola is one such

brand.

FIGURE2- SHOWING GLOBAL PRESENCE OF COCA-COLA



India falls under Coca-Cola’s Eurasia region of Operation.



2.6 OWNERSHIP PATTERN:

The Coca Cola Company is a public limited company (plc). They offer shares

to the general public through the company. It is mainly larger companies such as Coca

Cola that are public limited companies.

The advantages of a public limited company are:

* Shareholders have limited liability

* The sale of shares enables larger sums of money to be raised

* While the company has this money permanently, the individual owners can recoup their

money by selling their shares to others.

* Directors may be brought in as experts in certain fields

* Produce goods at lower unit cost

* Due to their size they can benefit from economies of scale, e.g. bulk buying, cheaper

borrowing.

The disadvantages of a public limited company are:

· There are a number of legal requirements to fulfill in setting up a

Company · Regulations mean that a company is more expensive to set up than a sole

trader or partnership, although the cost may be as little as £100, and some already

registered companies can be bought off the peg· The accounting of a company is less

private than for other forms of organization. The company could become too large

resulting in poor labor relations

· There could be a conflict of interest between shareholders and the Board of Directors

· Possibility of takeover or merger because shares can be bought by anyone.

Coca Cola also have limited liability as they are a public limited company. A limited

company is owned by its shareholders. There is no legal maximum to the number of

shareholders. There are two forms of Limited Liability Company in the UK, the Private

Limited Company (Ltd) and the Public Limited Company (Plc). The essential difference,

between the two, is that the Private Limited Company cannot legally offers its shares to

the general 'public', therefore this form of



Company is usually associated with family run businesses. Whilst the Public Limited

Company can sell its shares to the general public on the Stock Exchange, providing the

potential for far greater finances to be raised.

The owners of a limited company are referred to as its members, or shareholders. An

individual can become an owner of the business by purchasing shares in that business.

When the profits of the business are distributed to shareholders, they are distributed in the

form of a dividend. The value of the dividend is decided upon not by the owners, but by

the Directors of the business.

Some shareholders had invested their life savings and not only lost their money, but their

homes, limited liability was designed to protect shareholders from this mistake, but the

key motive was to ensure that large projects could continue to raise capital.

2.7 COMPETITORS INFORMATION

The competitors to the products of the company mainly lie in the non-alcoholic beverage

industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company

never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks

include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;

PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.

PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola

hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the

rest belongs to Pepsi.

Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals

with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has

been introduced into the market by Nestle provides a considerable amount of competition

to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it

is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk

products also have become substitutes to the products of the company due to growing

health awareness among people.



Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever

since times and people have laid all their trust in the Company and the products of the

Company. Apart from food products, Dabur has introduced into the market Real Juice

which is packaged fresh fruit juice. These products give a strong competition to Maaza

and the latest product Minute Maid Pulpy Orange.

2.8 AWARDS & RECOGNITION:

Responsible CEO of the Year Award, Muhtar Kent, Corporate Responsibility

Magazine (November 2010).

50 Most Admired Companies, FORTUNE (March 2010).

2009 CSR Award, Coca-Cola China, AmCham Shanghai 2009 Corporate Social

Responsibility Conference and Awards (November 2009).

Corporate Social Responsibility Awards, Coca-Cola India (May 2009).

Most Socially Responsible Company 2008, Coca-Cola Nigeria Limited, Social

Enterprise Reports and Award (SERA) 2008, (August 2008)

Foods and Beverages Most Socially Responsible Company in Nigeria 2008,

Coca-Cola Nigeria Limited, Social Enterprise Reports and Award (SERA) 2008,

(August 2008)

One of Ten "Most-Admired" Companies in Germany, The Coca-Cola Company,

Manager Magazine (February 2008)

Philanthropist of the Year, Coca-Cola Ukraine, World of Child, Ukrainian Fund

of Philanthropists and Ukraine 3000 (December 2007)

Named Strategic Partners in Poland's Responsible Business Forum, Coca-Cola

Poland Services (CCPS) and Coca-Cola HBC Polska (CCHBCP), Responsible

Business Forum (FOB) (December 2007)

No. 2, 2007 Corporate Social Responsibility Study, Coca-Cola Mexico, Excélsior

(December 2007)

World's Most Accountable Corporations, One World Trust 2007 Global

Accountability Report (December 2007).

Asia Society Leadership Award (November 2007)



No. 2, India's Most Respected Fast Moving Consumer Goods Company, and No.

7, Most Respected Multinational Corporation in India, Coca-Cola India, Business

World, in conjunction with the Indian Market Research Bureau (November 2007)

No. 13, World's Most Respected Companies survey, Barron's (September 2007)

No. 1, Food and Beverage Industry Category, Best Ethical Quote Progress and

Best Reported Performance Categories (July 2007)

No. 2, Leaders Across All Sectors for Best Reported Performance, Ethical Quote

(July 2007)

FTSE4Good Index of Socially Responsible Companies (July 2007)

No. 4, Most Respected Companies, Coca-Cola India, Business World (April

2007)

No. 8, America's Most Responsible Companies Consumer Index (March 2007)

Best Sustainability Initiative, eKO freshment program, Zenith International

Publishing Beverage Innovation Awards (March 2007)

No. 3, Beverage Industry Category, America's Most Admired Companies Survey,

Fortune Magazine (March 2007)

Corporate Social Responsibility Award, Mexican American Legal Defense and

Education Fund (March 2007)

Ethical Brand Awards: No. 1 in the U.S., No. 3 in Spain and No. 8 in France, five-

country study by market research group GfK NOP (February 2007)

"Global 100," unranked list of the world's 100 most sustainable corporations

(January 2007)

Product Innovation Best Ideas on Social Responsibility Issues, Coca-Cola Spain,

Actualidad Economica (2007)

Best Companies of the Year, Coca-Cola Spain, Dirigentes (2007)

Best Professional Ethics - 3rd Place, Coca-Cola Spain, Actualidad Economica

(2007).



2.9 WORK FLOW MODEL

The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest

plant and one of the bottling operations owned by the company. The plant has one PET

line which has the capacity of yielding 210 bottles per minute, and RGB bottles i.e. 600

bottles per minute. It caters to the whole of South Karnataka through a network of more

than 80 distributors. There are three depots in Bangalore; North Depot, East Depot, and

Mega Depot.

Manufacturing plant

Bidadi

Sales and

Distribution

Distributors

2.10 FUTURE GROWTH:


Outlets

Outlets


Not just growth, but sustainable growth -- meeting our short-term

commitments while investing to meet our long-term goals. And we have a vision and

clear goals to guide our journey to achieve long-term growth -- the kind of long-term

growth that allows careers to flourish.

We are building on our fundamental strengths in marketing and innovation,

driving increased efficiency and effectiveness in interactions with our system and

generating new energy through core brands that focus on health and wellness.



Mc. KINSEY’S 7S FRAMEWORK

STRUCTURE:



Structure of Coca-Cola:-


Chief Executive Office

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

Region Vice President

AGM/AOD (Unit 1)

AGM/AOD (Unit2)

AGM/AOD (Unit3)

AGM/AOD (Unit4)

Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region cold Drinks

Region Legal

Region BSG



Region Director/Manager

Region Capability Management

Region Channel


STRATEGY:


AGM/AOD

Plant Manager Route to Market Human Resource Manager

Finance Manager

General Sales Manager

Area Sales manager

Channel Manager Area Capability Manager

Sales Executive MarketingSales Trainer

Market DeveloperKey Accounts

Distributors and Salesman


What will drive for the success in the future is not just growth, but sustainable

growth meeting short term commitments while investing to meet long term goals. And

Coca-Cola company have clear goals to achieve long term growth.

The strategies are to build their fundamental strenghts in marketing and innovation,

driving increased efficency and effectiveness in interactions with the system and

generating new energy through core brands that focus on health and wellness.

As Coca-Cola is the world’s most recognised family of brands , they deliver more than

3500 beverages to over 200 countries around the world. Not just soft drinks , but juice

and juice drinks, sport drinks, water , coffee and milk. And every day they explore new

ways to create and share beverages to energize, relax, nourish , hydrate and enjoy.As

Coca-Cola is the world’s largest distributor of non alcoholic beverages, they maintain a

trusted local presence in every community.Coca-Cola have increased the annual

marketing budget substaintlly, launched many new products, and developed a new model

to help retail customers to maximize their sales while we continue to plan for the next one

, five and ten years in business.

SYSTEM:

Coca-Cola system in world wide and in India

Globally, the Coca-Cola system includes the company and more than 300

bottling partners. The Coca-Cola company manufactures and sells concerate and

beverage bases. In India the Coca-Cola system comprises of a wholly owned subsidiary

of the Coca- Cola company namely the Coca Cola India Pvt Ltd which manufactures and

sells concentrate and beverage bases and powdered beverage mixes, a company owned

bottling entity, namely Hindustan Coca-Cola beverages Pvt Ltd Thirteen authorized

bottling partners of the Coca-Cola company, who are authorized to prepare, package, sell

and distribute beverages under certain specified trademarks of the Coca-Cola company

and an extensive distribution system comprising of our customers, distributors and

retailers. Coca-Cola India Pvt Ltd sells concentrate and beverage bases to authorized

bottlers who are authorized to use these to produce our portfolio of beverages.



STAFF:

The people are the face of the brands. They are talented and passionate, and they

take immense pride in being a pert of company with a global scale. The Coca-Cola

system in India directly employs over 25,000 people including those on contract. The

system has created indirect employment for more than 1,50,000 people in related

industries through its vast procurement, supply and distribution system. The coco-cola

staff strive to ensure that the work environment is safe and inclusive and that are plentiful

opportunities for people in India and across the world.

SKILLS:

Working in Coca-Cola company, is going to be working with people who are

top of the league at what they do. The slill that is mainly deployed is of training skills.

Coca-Cola company has an extensive on the job training program to focus on day today

needs of the people and in each of the offices across the continent there are number of

local training innitatives.

STYLES:

There are four main types of management styles that each business would use.

Coca Cola have four principles of citizenship that they would have to incorporate into the

management style:

* Provide quality in the marketplace

* Enrich the workplace

* Preserve the environment

* Strengthen the community

A management style is an overall method of leadership used by the manager. The Coca

Cola Company use the following management styles, but each one in different

departments. There are three main types of management styles used in businesses:



Autocratic:

Where the leader makes all the decisions, there is no negotiation andis very prescriptive

and there is little job satisfaction. However, the job gets done quickly and there is less

conflict between different ideas. This style is hardly used among the company as they

believe that the lack of input could lead to poor results.

Autocratic does:

Save a lot of time as quick decisions can be made and there is no timewasted on

discussion resulting in the business saving time and money.

Democratic:

This emphasises on group agreements to generate new ideas. There aretwo types of

democratic management styles; democratic and consultative democratic. Democratic is

where all the managers, junior managers and employees are involved in the ideas and

final decision process. Out of all the workers, no-one has a higher level than the others n

this management style.

Consultative democratic:

This is where the managers allow the employees to make the ideas butthe ideas are

forwarded to the executive's or the manager consults their team to make the final

decision. Coca Cola applies consultative management style to the company more as there

can be less conflict for what the final decision is. The advantage of this is that it helps to

motivate staff as they are aware that they have a say in the company to some extent. The

disadvantages of this that the process is verytime consuming and effort will be needed by

a manager to do this.

Management encourages employees to set goals in line within theorganization aims.

There are reviewed regularly in performanceappraisals. The advantages of this style are

that it will increase efficiency of individuals and help to motivate them and train them so

they are productive. The disadvantages of this are that it needs to be well organized and

will not work in highly structured jobs.



Democratic style is the management style that Coca cola adopts. Thissort of management

style involves empowerment. In this management style individuals and teams are given

responsibilities and decisions to make, usually within a given framework. If anything

wrong happens then the individuals and teams are then held responsible for the decisions

that are chosen. With this type of management style it allows the manager to feel

comfortable with other people in the organization making some of the decisions.

Democratic managers will often want feed back from their employees on decisions being

made. Democratic leaders listen and act on the opinions of the group. This type of

management is good as it makes the employees happy and productivity is high. This is a

very good method because employee's thoughts and suggestions are listened to by the

business. This makes the employees seem as if they are respected and that their thoughts

are valid.

SHARED VALUES:

Coca-Cola company is guided by the shared values such a

Leadership: ‘The courage to shape a better future.

Passion: ‘Committed in heat and mind’

Integrity: ‘Be real.’

Accountability: ‘If it is to be, it is up to me’.

Collaboration: ‘Leverage collective genius’.

Innovation: ‘Seek, imagine, create and delight.’

Quality: “What we do, we do well.

SWOT ANALYSIS



SWOT Analysis is the process of analyzing the company and the environment in which

it is operating. This analysis helps in formulating effective strategy for the company to deal with

competition. SWOT stands for Strengths, weaknesses, opportunities and threats. Strengths and

weakness are internal to the organization, whereas opportunities and threats are external to the

organization.

Strengths:

High Quality Products: The products of Coca Cola are well known for their

product quality.

Highly Reliable Products: Coca Cola products are highly reliable in the Indian

beverages market.

Best Seller Products: Coca cola has two of the bestselling products Thums Up,

Sprite all over India.

Brand Loyalist: Coca cola has huge number of brand loyal people. It has been

already proved, as the Coca Cola products are the best seller in the beverages

segment all over the world.

Coca cola has a huge product mix to cater every segment of the market.

Availability, Affordability, Acceptability: These additional features of our product

give us an added advantage over our rivals in the CSD segment.

Weaknesses:

Less efficient distribution channel: The present distribution channel lacks

penetration because retailer activation involves higher cost. Coca cola needs

to become the Hindustan lever of India.

Brand killing strategy of coca cola: Coca cola tends to kill the local brand in

order to promote its own international brands. Coca cola has done this in past

and still follow this strategy. Coca cola has put behind Limca in order to

promote its other international brand Sprite and MMPO.

Horizontal and vertical conflict exists in the distribution channel. Distributors

are trying to eat up the profit of the distributors of the adjoining area.

Opportunities:



Some of the segments are still untouched by coca cola like the juice segment and

the milk product segment. Our rival Pepsi has paid attention to this segment and

therefore gained a lot from this segment. A vast market of 1200 crores or 500

million cases has been untouched by coca cola.

Every market has its own local needs. People need changes over the season for

example people tend to switch over to drinks like Lassi and Neembupani. Coca

Cola should come up with drinks which are more local and seasonal.

In metropolitan areas people are becoming more health conscious and therefore

prefer drinks which are nutritious and health beneficial. This segment needs

attention.

Threats:

In the CSD segment there is still a price war between Coke and Pepsi, therefore

both the rivals maintain the same price but the way in which the rivals can gain

advantage is by influencing the distributor and the retailers by offering them

special schemes.

Since retailers are always profit oriented they tend to shift their preferences which

can turn out to be a major loss.

LEARNING EXPERIENCE

Through internship project at Hindustan Coca-Cola Beverages Pvt. Ltd,

Bangalore I got an opportunity to learn and get experienced with the principles and

practices followed in the company. It also gave me a real time interaction with the



market, the marketing concepts followed as well as the real time challenges faced in the

market, which directly or indirectly affects the overall operation of the business.

It also helped me to know how an organization functions by providing an insight

of different departments of an organization and their co-ordination with other

departments to achieve the common objective of the organization.

While working on project I have learned many crucial things which were very

difficult to get through theoretical study. This Project has given me a platform to apply

my theoretical background which I have learnt during my academics. During this Project

I visited several customers and interacted with corporate people who enriched my

knowledge base.

Learning experience from the study

Through this study I got an understanding of the business carried out by the

company.

The study helped me to experience the operations and functions of the

organization

It helped me to understand how the database is prepared and maintained.

The study gave me a real time experiencing on Profiling of the customer bases

and segmenting the same into different sectors.

The study gave me an overview of procedure of creating a new Customer &

retaining them for long term goals.

While working on the project I got an exposure to how to develop a strategy plan

for increasing present customer base & generating a continuous business from the

existing customer

The study helped to understand the Porter's Five Forces concept and the method

of using the strategic tools.



The project also helped me to know the job profile of employees at different levels in the

organization, their job responsibilities and their contribution towards the success of the

organization.

GENERAL INTRODUCTION

What is Horizontal Expansion?

Expansion of business capacity through the absorption of facilities or

buildings as well as through the acquisition of new equipment to handle an increased



volume in sales in which the business is already engaged .In microeconomics and

strategic management, the term Horizontal Expansion describes a type of ownership and

control. It is a strategy used by a business or corporation that seeks to sell a type of

product in numerous markets. Horizontal Expansion in marketing is much more common

than Vertical Expansion is in production. Horizontal Expansion occurs when a firm is

being taken over by, or merged with, another firm which is in the same industry and in

the same stage of production as the merged firm,

E.g. Pepsi has adopted strategy of Vertical Expansion by which Pepsi wants to

improve its sale from Coke monopoly outlets, means Coke’s monopoly outlets are being

taken over by Pepsi now in this condition to improve its sale Coke need to open new

outlets which is called Horizontal Expansion Strategy. A monopoly created through

Horizontal Expansion is called a Horizontal Monopoly.

This is the expansion of a firm within an industry in which it is already active for the

purpose of increasing its share of the market for a particular product or service.

Horizontal Expansion:

It is defined as expanding a business beyond what is presently known as its core

functions. Best illustrated by example, a typical case of horizontal expansion was when

ProBlogger decided to introduce their Job Boards. While ProBlogger’s core functions

was providing bloggers with tips on how to make money through their blogs, the team

behind the site identified that a job board could compliment what they already provided

their “customers” (readers) with, and at the same time create a new cash flow and

increase their revenue (by charging for the listings on the job board).

This is a type of horizontal expansion where you expand on your already existing brand

and go beyond your core activity in order to create new and (hopefully) rewarding cash

flows that by calculation will, at some point, make your business more profitable.

Another type of Horizontal Expansion is to create a completely new section of your

company, and only tie them together under an umbrella. In the world of small,

independent online publishers a feasible example would be that if you run a popular blog

on a certain videogame, you can start a completely new blog on another videogame, and



tie them together only by a company/network blog or website. Of course, the other

method of expanding horizontally would be to simply extend the topic of your current

blog to include the additional new videogame.

When developing an market business you will always be looking for ways to maximize

your revenue, and expanding your fields of operation is often a possibility that surfaces

when you are evaluating the future of your businesses. While common to most of those

who have formally studied business management, the concepts of Vertical Expansion and

Horizontal Expansion are not always recognized by small time internet entrepreneurs

such as myself.

Generally when facing the option of expansion, you will have two initial paths to choose

from, and the way we usually separate them is by classifying them as horizontal or

vertical.

Reason Of Horizontal Expansion?

The ultimate objective of coke is to acquire more customer and serve them

properly. While doing Horizontal Expansion take care to the competitor’s strategy.

The main competitor is PEPSI, who has opted Vertical Expansion to generate more

sell however Coke do not believe on Vertical Expansion because Vertical Expansion

has limited preview so COKE is great believer in Horizontal Expansion and this

strategy helped to the company to maintain its leadership in the soft drink industry.

India is a big country having diversified taste and appearance and same

character is reflected in their demography. Horizontal Expansion helps the company

to serve the more people and more customers touch point because in the waste

country many customers commute.

Benefits of horizontal expansion

Through this study company can know about its growth compared to its major

competitor

PepsiCo.



This study will also help to the company to know about their new concepts position in

the market

This study will also help to the company to know about its promotional activities

involved in advertising.

Through this study company will know about the availability of its products in the

market.

This study is helpful to find out the sales trends of the Coke products and its effect on

consumers value and satisfaction.

This study is helpful to find out the number of outlets coming under RED concept

This study is also helpful to find out the outlets efficiency which are coming under

RED.

This study directly deals with interaction of different kinds of people in the

organization which helps me to understand the corporate communication system.

This study also helps me to understand how the marketing strategy like Pull and

Push works in the corporate. (For push – at the time of pulpy promotion, for pull

at the time of more demand of sprite.).

Provides Incremental Volume & Revenue for Business

By horizontal expansion there will be more outlets of our product In the market

which will sell our product in more quantity. This will generate incremental

revenue for the business.

Helps to Improve Route Productivity.

Increase in market power over supplier and downstream market channels

OUTCOME OF THE PROJECT

Apart from the other benefits of horizontal expansion, its main benefit is to

generate incremental revenue for the company. During the project I studied strategies

and analyzed the market. My major job was to use different tools provided by the

company for horizontal expansion like refrigerator, ice box etc. and to open outlets



for coca cola products. With my other team mates I targeted the market of Bengaluru

and added 27 new Outlets to The Company.

6.1 STATEMENT OF THE PROBLEM

The ultimate objective of coke is to acquire more customers and serve them

properly. They are also concerned to the competitor’s strategy. The main competitor

is PEPSI, who has opted Vertical Expansion to generate more sell however Coke do

not believe on Vertical Expansion because Vertical Expansion has limited preview so

COKE is great believer in Horizontal Expansion and this strategy helped to the

company to maintain its leadership in the soft drink industry.

Horizontal Expansion helps the company to serve the more people and more

customers touch point that is why company is in to analyzing the opportunities for

horizontal expansion in the market.

6.2 OBJECTIVES OF THE STUDY

1. To understand and explain the concept of Horizontal Expansion to the retailers.

2. To understand how to make the Horizontal expansion process more effective.

3. To Know the Demand in terms of coco-cola products from the Retailers.

4. To enhance the business, and to expand the market coverage

5. To study the distribution system of the company.

6. To enlist the benefits of horizontal expansion for the company at the retail end.

6.3 SCOPE OF THE STUDY

Horizontal merger provides the following advantages to the companies which are

merged:

1) Economies of scope

The notion of economies of scope resembles that of economies of scale. Economies of

scale principally denote effectiveness related to alterations in the supply side, for



example, growing or reducing production scale of an individual form of commodity. On

the other hand, economies of scope denote effectiveness principally related to alterations

in the demand side, for example growing or reducing the range of marketing and supply

of various forms of products. Economies of scope are one of the principal causes for

marketing plans like product lining, product bundling, as well as family branding.

2) Economies of scale

Economies of scale refer to the cost benefits received by a company as the result of a

horizontal merger. The merged company is able to have bigger production volume in

comparison to the companies operating separately. Therefore, the merged company can

derive the benefits of economies of scale. The maximum use of plant facilities can be

done by the merged company, which will lead to a decrease in the average expenses.

The important benefits of economies of scale are the following:

• Synergy

• Growth or expansion

• Risk diversification

• Diminution in tax liability

• Greater market capability and lesser competition

• Financial synergy (Improved creditworthiness, enhancement of borrowing power,

decrease in the cost of capital, growth of value per share and price earnings ratio, capital

raising, smaller flotation expenses

• Motivation for the managers

For attaining economies of scale, there are two methods and they are the following:

• Increased fixed cost and static marginal cost

• No or small fixed cost and decreasing marginal cost

One example of economies of scale is that if a company increases its production twofold,

then the entire expense of inputs goes up less than twofold.

6.4 RESEARCH METHODOLOGY

Research Design:



Once the problem is identified, the next step is the research design. Research

design is the basic framework of rest of the study. A research design specifies the

methods and procedures for conducting particular study.

In this project I am following descriptive research design.

Source of Data:

There are two types of data:

1. Primary data

2. Secondary data

Primary Data:

The primary data is fresh information collected for a specified study. The primary data

can be gathered by observational, experimentation and survey method. Here the entire

scheme of plan starts with the definition of various terms used, units to be employed,

type of enquiry to be conducted, extent of accuracy aimed etc.,

The methods commonly used for the collection of primary data are:

1. Direct personal investigation, where the data is collected by the investigator

from the sources concerned.

2. Indirect oral interviews, where the interview is conducted directly or

indirectly concerned with subject matter of the enquiry.

3. Information received through local agencies, which are appointed by the

investigator.

4. Mailed questionnaire method, here the method consists in preparing a

questionnaire (a list of questions relating to the field of enquiry and providing

space for the answers to be filled by the respondents.), which is mailed to the

respondents with a request for quick response with in the specified time.

In this project mailed questionnaire method is used to collect the primary data.



Secondary Data:

The secondary data refers to data, which already exists. The secondary data collect from

internal records, business magazines, company websites and Newspapers.

Research instruments:

For the collection of primary data a structured questionnaire was prepared covering

various aspects of the study.

The questionnaire contains closed-ended and dichotomous questions.

Sampling Procedure:

It is a procedure required from defining a population to the actual selection of the sample.

PROCESS

The study is based on Primary data and Secondary data. Secondary Data was collected

from the Company’s website and MD’s Sales Presenter as well as Primary Data was

collected through structured questionnaire. The questionnaire was designed by keeping

all the objectives of the study in mind.

The type of research which is used to conduct survey was.

Sample Unit:

Sampling units are outlets owners/ shopkeepers selling soft drinks.

Sample Size:

Sample size of 80 Outlet.

Sample Technique:

Sample Technique is Simple Random Technique.

Method of data collection:

Method of data collection is survey method.



6.5 LIMITATIONS OF THE STUDY:

1. The training was for shorter period of time that is why it was not possible to

carry out a detail study.

2. The sample size was limited.

3. The strategies of the company changes very frequently it is difficult to make

exact recommendation.

DATA INTERPRETATION

1. What type of outlet do you hold?

Type of Outlets

Type of Outlets Number Percentage



Grocery Store 15 19

E&D 1- Bakery 15 19

Convenience Store 50 62

TOTAL 80 100

Source Primary Data

Graph-1: Type of outlets

ANALYSIS:

In this Graph Convenience Stores are 62 in percentage whereas E&D Bakery and

Grocery Store are of 19%.

INTERPRETATION:

By knowing the above graph it is very obvious that the visited area included more

number of Convenience Store and hence our more effort was to enroll these stores to

expand the business.

2. Do you deal with beverages?

Outlets deal with beverages

Response Number Percentage

Yes 45 56

No 35 44



Total 80 100

Source: Primary Data

Graph-2: Outlets deal with beverages

ANALYSIS:

Among 80 Outlets 45 outlets are deal with beverages and 35 Outlets do not deal with

beverages.

INTERPRETATION:

In the above graph out of 80 visited new outlets 45 outlets are deal with beverages and 35

outlets do not deal with beverages. Here I tried to convince those outlets also which were

not interested but only in few cases I got success. If Company comes up with good

profitable scheme then may be these outlets can be enroll for the Company.

3. If yes which brand do you keep?

Percentage of Outlets Holding Other Brands

Brands Number Percentage

Pepsi 31 69



Parle 12 27

Dabur 2 4

Total 45 100

Source Primary Data

Graph-3: Percentage of outlets holding other brands

ANALYSIS:

In Market most the outlets keeps Pepsi Products. Among 45 new Outlets 31 Outlets hold

Pepsi Products and 12 Outlets and 2 Outlets keeps Parle and Dabur respectively.

INTERPRETATION:

Most of the Outlets were keeping Pepsi products the reason behind it may be Coca-Cola

Company have not approached them still or may be that particular area have less demand

of Coke Product.

4. Are you aware of Coca-Cola products?

Awareness of Coca-Cola

Variable Number Percentage

Yes 80 100



No 0 0

TOTAL 80 100

Source Primary Data

Graph-4: Awarness of Coca-Cola

Analysis: The above table shows that 100% of outlets owners are aware of Coca-Cola products and nil% said No.

Interpretation: So here it can be interpreted that all the outlet owners sre sware of Coca-Cola products.

5. If Yes how did you come to know?

Media which created awareness of coca-colaVariable Number PercentageBanner 8 10Hoarding 32 40Television 30 37.5



Newspaper 10 12.5TOTAL 80 100Source Primary Data

Graph-5: Media which created awareness of Coca-Cola

ANALYSIS:

The above table shows that

10% of outlet owners came to know about the coca-cola products through banner.

40% of outlet owners came to know about the Coca-Cola product through Hoarding

37.5%of outlet owners came to know about the Coca-Cola product through television.

12.5% of outlet owners came to know about the Coca-Cola product through Newspaper

INTREPRETATION:

From the analysis of the above data it can be interpreted that advertisement through

hoardings and television are the major tool for creating awareness to the consumers.

6. What is the chilling equipment you use?

Chilling Equipment Uses by Retailers Numbers Percentage

Pepsi Fridge 17 38

Own Fridge 15 33



Ice Box 2 4

Both Pepsi fridge and own box 11 25

Total 45 100

Source Primary Data

Graph-6: Chilling equipments used by retailers

ANALYSIS:

From the above graph it is analyzed that Outlets keep mostly Pepsi and their own

Chilling equipment.

INTERPRETATION:

Pepsi fridge holding outlets are more and next is own fridge holding outlets and only 2

outlets are keeping Ice fridge out of 45 outlets & both Pepsi and own ice box are 11 in

number.

7. Does outlet fits in Balance 2 criteria? (Pepsi products)

Outlets Fits in Balance 2 Criteria




Yes 31 39

No 49 61

Total 80 100

Source Primary Data

Graph-7: Outlets fit in Balance 2 criteria

ANALYSIS:

49 Outlets fits in balance 2 criteria and 31 does not fits.

INTERPRETATION:

In the above Graph among 80 new Outlets 31 Outlets keep Pepsi Products and 49 Outlets

they were not having any of the beverages like Coca- Cola and Pepsi. There was a more

opportunity to enroll new outlets because most of the outlets do not have any beverages

products.

8. How often do you order for the products?

Frequency of Placing Order For The Products

Days Number Percentage



Daily 10 22

Weekly 29 64

Monthly 6 14

TOTAL 45 100

Source Primary Data

Graph-8: Frequency of placing order for the products

ANALYSIS:

29 Outlets order weekly 10 Outlets Daily and 5 Outlets Monthly.

INTERPRETATION:

There are 29 outlets which order in weekly basis and only 10 outlets are there which

order daily and only 5 outlets are there which order in monthly basis. Commonly outlets

order for weekly basis.

9. What do you do if a brand which you prefer is not delivered to you on time?

Response of The Retailer If Product is not Delivered on Time




Go for other brand 25 31

call to distribute 8 10

Call to company's Sales Person 22 28

Stop Selling that Brand 25 31

Total 80 100

Source Primary Data

Graph-9: Response of the retailer if products is not delivered on time

ANALYSIS:

Among 80 new Outlets 55 Outlets said that they will go for other brand whereas 27 said

they stop selling the Brand and 23 and 13 outlets said call to Company’s Salesperson and

Distributor respectively.

INTERPRETATION:

If brand product is not delivered on time then commonly outlets go for other Brand. But

if demand is high for the same product then they try to contact company to get the

Product on time.

10. Coca-Cola Company does not take empty bottles of Pepsi, but the latter does. Does it

have any effect on sales?

Effect On Sales If Coca-Cola Does not Take Empty Bottles of Pepsi




Yes 2 4

No 18 40

Can't Say 25 56

Total 45 100

Source Primary Data

Graph-10: Affect on sales if Coca-Cola does not take empty bottles of pepsi

ANALYSIS:

There are 25 Outlets have not given any response for this Questionnaire and 18 and 3

Outlets said NO and YES respectively.

INTERPRETATION:

Coca-Cola does not take empty bottles, most of the retailers were not having any idea of

this but some said that there is no any impact on sales.

11. Kindly rate the behavior of salesman of the beverages you deal with?

Behavior of Salesman of The CompanyResponse Number PercentageHighly Satisfied 4 8Satisfied 24 54



Neither Satisfied nor Dissatisfied 13 29Dissatisfied 4 8Highly Dissatisfied 0 0Total 45 100Source Primary Data

Graph-11: Behaviour of salesman of the company

ANALYSIS:

From the above Graph 24 Outlets were very satisfied with Pepsi services and 4 are highly

satisfied. 13 Outlets were not satisfied or dissatisfied and only 4 outlets among 45 Outlets

were dissatisfied.

INTERPRETATION:

Pepsi provided better services to the outlets and hence it is required for the Coca-Cola

Company to come up with better scheme and provide a better services to the outlets then

competitors.

12. If you wish to do business with Coco-Cola, give reasons for it?

Reason Behind Keeping Coca-Cola ProductsReasons Numbers PercentageBrand Value 35 44



Better Scheme 2 3High Demand 41 51Good Supply 0 0High Profit Margin 0 0Good Service Quality 1 1Any Other 1 1Total 80 100Source Primary Data

Graph-12: Reason behind keeping Coca-Cola products

ANALYSIS:

There are 44 new Outlets wants to go for Coca-Cola Products because of their Brand

Value and 51 Outlets because of High Demand. Only 3 Outlets for better scheme and 1

outlet for Good Service and any other reason.

INTERPRETATION:

There are 49 outlets they want to do business with Coca-Cola Company and 51 Outlets

they do business because Coca-Cola Product have high Demand.

13. How you rate the price of beverages you keep other than Coca-Cola?

Rate 1 if it is least price and Rate 5 if it is highly priced.



Rating of the price of beverages other than Coca-ColaRate Numbers Percentage

1 1 22 14 313 17 384 9 205 4 9

TOTAL 45 100Source Primary Data

Graph -13: Rating the price of beverages other then Coca-Cola

ANALYSIS:Among the total respondents 2% retailers says that the Coca-Cola products are priced

high, 31% says it is priced more then others, 38% have neutral opinion about it, 20% says

it is priced lower then others and remaining 9% says that it is priced least.

INTERPRETATION:

Majority of the retailers have an opinion that the products of Coca-Cola is priced cheaper

then other beverages. However the percentage of retailers saying that the coca-cola

products are rated higher then other products is sufficient enough for the company to

consder the revision of the pricing policy.

14. Which type of packaging attracts the retailers to open the outlet?

Packaging attracts the retailersParticulars Number Percentage



R G B 23 50%Pet Bottles 18 40%Tetra Packs 1 2%Cans 3 8%TOTAL 45 100Source Primary Data

Graph-14: Packaging attracts the retailers

ANALYSIS:

By knowing above graph, R G B is 50%, Pet bottles is 40%, Tetra packs is 2%

and Cans is 8% contribution towards attracting the retailers for opening a new

outlet

INTERPRETATION:

Here R G B is highest percentage and TETRA PACKS having lowest percentage

in attracting the retailers to open a new outlet

15. Which of the following promotions affect the opening and retaining of outlets?

Promotions affecting the opening and retaining of outlet

Schemes 32 40%



Case re-fund 28 35%

Price pack 20 25%

TOTAL 80 100

Source Primary Data

Graph-15: Promotions affecting the opening and retaining of outlet

ANALYSIS:

By knowing above graph, Schemes 40%, Case re-fund 35% and Price pack is

25% effect on the opening and retaining of outlet.

INTERPRETATION:

Here SCHEMES is having highest percentage and PRICE PACK is having lowest

percentage.

FINDINGS

1. In the survey I recognized that there is 51% of demand for the Coca-Cola products

than any other products.



2. It is felt that outlet owners are very much interested in supply part. So the company

needs to take care of the supply division.

3. Pepsi provided better services to the outlet and hence it is required for the Coca-Cola

Company to come up with better service options for the outlets than its competitors.

4. I found out that around 43.75% of new outlets were not keeping any kind of

beverages. Hence there was more opportunity to enroll new outlets.

5. Most of the outlets i.e. around 69% of outlets were keeping Pepsi products. The

reason behind it would be Coca-Cola Company might not have approached them.

6. My survey found that 44% of outlets trust the Coca-Cola brand name and goodwill.

Hence there is a good business opportunity with these new outlets.

7. My survey found that there is 100% awareness of Coca-Cola products.

RECOMMENDATION AND SUGGESTTION

1. Whenever the retailers have problems with their cooling equipment prompt after

sales services can be provided.



2. After sales service is very important factor and should be looked into sincerely.

3. Exchange policy should be improved. So that retailers won’t suffer from any

losses and will be happy.

4. Consumer preference is towards Coco-Cola brand because of its taste and

quality. So the company should maintain the same.

5. Company should try to maintain the availability of Coca- Cola Products in rural

areas.

6. The supply and distribution services should be improved for getting more sales

and being remain as market leader.

CONCLUSION

In the present competitive world the success of the company depends on

satisfying the customers as well as channel members. This is the area of retail business

and to win the race and be on the top companies are out Performing by spending more on

trade promotions. The channel members play a key role in increasing the sales of FMCG



products. So the company has to pay more attention on distribution, promotion and

availability of brand to win sales in the market. The study concludes that the Hindustan

Coca Cola Beverages Pvt. Ltd has to strengthen its product line by introducing new

flavors and new sizes. It also has to increase the stock holding and availability of Coke

brands through motivating channel members by offering attractive schemes and

incentives.

QUESTIONNARE

1. Name of Outlet: ________________________________________

2. Location:______________________________________________

3. Life Span of Business:____________



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

5. What Type of Outlet do you hold?

a) Grocery Store

b) E&D 1- Bakery

c) Convenience Store

6. Do you deal with beverages?

a) Yes

b) No

7. If yes which Brand do you keep ?

a) Pepsi

b) Parle

c) Dabur

8. Are you aware of Coca-Cola Products ?

a) Yes

b) No

9. If yes, how did you come to know ?

a) Banner

b) Hoarding

c) Television

d) Newspaper

10. What is Chilling Equipment you use?

a) Pepsi Fridge

b) Own Fridge

c) Ice Box

d) Both Pepsi and Own Fridge

11. Does outlet fit in Balance 2 Criteria?

a)Yes

b)No

12. How often do you Order?

a) Monthly



b) Weekly

c) Daily

13. What do you do if a Brand which you prefer is not delivered to you on time?

a) Go for other Brand

b) Call to Distributor

c) Call to Company’s Sales Person

d) Stop Selling that Brand

14. Coca-Cola Company does not take empty bottles of Pepsi, but the latter does.

Does it have any effect on sales?

a) Yes

b) No

c) Can’t Say

15. Kindly rate the behavior of salesman of the beverages you deal with?

a) Highly Satisfied

b) Satisfied

c) Neither Satisfied nor Dissatisfied

d) Dissatisfied

e) Highly Dissatisfied

16. If you wish to do business with Coco-Cola, give reasons for it?

a) Brand Value

b) Better Scheme

c) High Demand

d) Good Supply

e) High Profit Margin

f) Good Service Quality

g) Any Other

17. How you rate the price of Beverages you keep other than Coca-Cola?

a) Rate 1 If it is least price and

b) Rate 5 if it is highly priced



18. Which type of packaging attracts the retailer to open the outlet

a) R G B

b) Pet bottle

c) Tetra Pack

d) Cans

19. Which of the following promotions affect the opening and retaining of outlets

a) Schemes

b) Case refund

c) Price pack

Suggestions if any:

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BIBLIOGRPHY

Books:

Marketing Management- Philip Kotler (Pg.no. 5,12,452,455 etc.)

Business Research Methods by Prof. S.N. Murthy and Dr. U.Bhojanna

Websites

www. coca - cola india.com

www. coca - cola .com

http://en.wikipedia.org/wiki/The_Coca-Cola_Company

http://www.123helpme.com/view.asp?id=148943

www.the coca - cola company.com


http://www.thecoca-colacompany.com/

http://www.123helpme.com/view.asp?id=148943

http://en.wikipedia.org/wiki/The_Coca-Cola_Company

http://www.coca-cola.com/

http://www.coca-colaindia.com/

"Analysing The Opportunities for Horizontal Expansion of Coca-Cola Company"

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