Coca Cola Final Dissertation(2)

“Thanda Matlab, Coca Cola”

“IMPACT OF RED ON THE SALE OF COCA COLA PRODUCT: A STUDY IN LUCKNOW MARKET” 2008 - 09

CHAPTER 1

Introduction:

The introduction of soft drink was due to necessity of traveling particular in the

absence of availability of reliable water. But meaning quietly changed with

changing in time. It has become so, popular commodity fashion & habit instead of

requirement of quenching thirst.

The Coca Cola Company is the largest manufacture, distributor and marketer of non

alcoholic beverages concentrates and syrups in the world. Finished beverages

products bearing company trademarks, sold in the United States since 1886 are

now sold in more than 200 countries. Along with Coca Cola, this is recognized as the

world’s most valuable brand. Coca Cola market four of the world’s top five

nonalcoholic sparkling brands, including Diet Coke, Fanta and Sprite. Coca Cola

Company has emerged as a global leader in the beverages sector. It has a variety of

products in the market which provides benefits to the customer as well as to the

government. The customer uses Coca Cola product for their refreshment as per the

requirement of their willingness. The Company provides large number of

employment in the form of jobs to the people working in our country. The

Government in return generates profits from the company as it is a multinational

company due to the induction of foreign investment policy adopted by the

government of India. Coca Cola also continues to broaden the range of low and no

colour alternatives that they provide to help people manage their colour intake.

I.I.P.S, DAVV, INDORE - 1 -



They are offering an increasing variety of package sizes to allow customers to

manage their consumption. They continue to expand its beverages with added

health and nutrition benefits such as vitamins and nutrients. Intense competition

between other companies and Pepsi in particular has characterized the soft drink

industry for decades. In this game of giant firm, Coca Cola dominated the soft drink

market throughout the 1950’s, 1960’s and the early 1970’s. It outsold Pepsi two to

one. Then this chess game switched to the international arena.

The Company business is in nonalcoholic beverages-principally sparkling beverages,

but also a variety of still beverages. Company manufacture beverages concentrates

and syrups, which company sell to bottling and canning operations, fountain

wholesalers and some fountain retailers as well as finished beverages, which

company sell primarily to distributors. Company owns or licenses more than 450

brands, including diet and light beverages, water, enhanced waters, juices and

juices drinks, teas, coffees, and energy & sports drinks. in addition, company has

ownership interests in numerous beverages joint venture, bottling and canning

operations, although most of these operations are independently owned and

managed. Ever Since, Coca-Cola India has made significant investments to build and

continually consolidate its business in the country, including new production

facilities, waste water treatment plants, distribution systems and marketing

channels. Coca-Cola India is among the country’s top international investors, having

invested more than US$ 1 billion in India within a decade of its presence and

further pledged another US$100 million in 2003 for its operations. Hindustan Coca




Cola Beverages Pvt Ltd., India division under Eurasia Operating Group has been

working on RED i.e. Right Execution Daily since FEB 2006.

Coca Cola Company believes that its success depends on their ability to connect

with consumers by providing them with a wide variety of choices to meet their

desires, needs and lifestyles choices. Company success further depends on the

ability of their people to execute effectively, every day. Coca Cola product helps

the customer in an instant digestion process. However the customers are using

their product in order to feel energetic and refreshing. Whenever the customer

feels thirsty then they use the soft drink to quench their thirst instead of water.

Therefore the Company enables the employees to join hands to make the company

profit.




CHAPTER 2

RESEARCH METHODOLOGY

2.1 INTRODUCTION

The management decision process has become complex and requires an effective

and full proof management information system. During the year of growing

complexities, the management needs more and more rigorous information to

reduce uncertainties involved in introducing new products and penetrating a new

market. Market research has today becomes an important component of the

marketing information system, to manage all areas of management in general

amount to marketing management in particular.

Marketing research is the collection, analysis and interpretation of facts and figures

pertaining to marketing management.




Marketing management needs essential information regarding products, prices,

market condition of demand and supply, customer’s need and desires, selling

methods, physical flow of goods, competitive decision, external marketing

environment and other factors of marketing thus a systematic approach is applied

termed as research methodology. Glasser has defined “Market research is the

application of scientific method of the study of the factors that affects the buying

decision in a given market and the profitability of the business concerned”

2.2 RESEARCH METHODOLOGY:

Research methodology has many dimensions and research methods are integral

part of it. Research methodology has a wider scope than that of research methods.

Research methodology is systematic way for solving research problem. It is a

science of studying 'how Research is done scientifically.

It is essential for any researcher to know not only research techniques but also

research methodology. In research methodology we study the various steps that

are generally adopted by researcher in studying his research problem along with

logic behind them so that research results are capable of being evaluated either by

the researcher himself or by any other person.




2.3 TYPES OF RESEARCH:

There are different types of research viz., analytical research, fundamental

research, quantitative research, qualitative research, conceptual research, empirical

research. Present study is a Exploratory study.

Exploratory Research: The researcher has to use facts or information already

available and analyze these to make a critical evaluation of the material.

2.4 SELECTION OF SUBJECT:

Selecting the subject of research is a crucial decision for the researcher. The idea of

the subject should be very clear in his mind. The selected subject should be clear

and precise and ambiguity should be avoided. In the present instance the subject

related for study consists of analyzing the impact of RED on the sale of coca-cola

product in patna market.

2.5 SELECTION OF TITLE:

The title given to the subject matter to research work should not be ambiguous; the

reader should be able to form an idea about the contents of the research work




after going' through its title. The title of this research work is Impact of “RED”-Right

Execution Daily on the sale of coca-cola product in patna market.

2.6 RESEARCH OBJECTIVES:Following are the various objectives of study

To study marketing strategies adopted by coca-cola.

To study customer satisfaction about coca-cola products.

To study the effect of RED on boosting sales of coca-cola products.

2.7 SCOPE OF THE STUDY:

Study of Management of RED helps the management in the following ways:-

1. It improves management’s ability to plan and control the sales of Coca Cola.

2. It will certainly help the strategies for survival and growth of the Company.

3. It avoids wastage and underutilization of resources which can be employed

profitably.

4. It is relevant to inflows and outflows conditions of the Company.

2.9 DATA COLLECTION AND RELIABILITY OF DATA:

For this research work there is need of both Primary & Secondary

data. Here I have taken the Primary data which was collected from the

Customers.




The secondary data are those, which have already been collected by someone else

for other purpose. The data, which are secondary in the hands of one, may be

primary for others. Here the Secondary data is collected from the company’s R&D

department.

2.10 LIMITATION OF THE REPORT

I found the following limitations during my actual project execution:-

o More stress was given on the primary data.

o The finding of the survey will be strictly based on the response of the

consumers, since it is difficult to ascertain the authenticity of the statements.

o All the observation and recommendation will be made on the feedback

obtained from the survey.

2.11 HYPOTHESIS:

After the researcher has collected the data and before starting work on it,

he forms a hypothesis. Hypothesis is the assumption made by the researcher about

the outcome of the study. Based on objectives following hypothesis was made.

Here the hypothesis formed is:

Marketing strategy of Coca Cola beverages Pvt. Ltd is strong enough to

increase the profit and sales volume of the Company.

Retailers and distributors are satisfied with the RED.

2.12 ANALYZING THE DATA:




The next step in the research process is to extract pertinent findings from the data.

The researcher tabulates the data and uses various financial tools to assess the

financial soundness of the company.

2.13 FINDINGS

After analyzing the data and conducting various tests upon it the researcher

comes to know of certain facts. These facts are the findings of the study.

2.14 REPORTING

When the researcher finishes analyzing the data and various facts are found

out the research work is almost over. These findings are then summarized and

conclusions are drawn from it.




CHAPTER 3

COMPANY PROFILE

3.1 EXECUTIVE SUMMARY

The Coca Cola Company was incorporated in September 1919 under the laws of the

State of Delaware and succeeded to the business of a Georgia Corporation with the

same name that had been organized in 1892. Coca Cola Company is one of

numerous competitors in the commercial beverages market. Of the approximately

53 billion beverage servings of all type of consumed worldwide every day.

Beverages bearing trademarks owned by or licensed to company account for

approximately 1.5 billion. Coca-Cola, the corporate nourishing the global

community with the worlds largest selling soft drink concentrates since 1886. Coca

Cola Company put his first step in India in 1952 but withdrew completely in 1977

due to change in Indian Government polices. Again returned to India in 1993 after a

gap of 16 years giving a new thumb up to the Indian Soft Drink Market. In the same

year, the Company took over ownership of the nation's top soft-drink brands and

bottling network. No wonder, their brands have assumed an iconic status in the

minds of the consumers.




Coca-Cola serves in India some of the most recalled brands across the world, which

include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the

Schweppes product range. The acquisition of Thums Up brought some of the

leading national soft drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under

its umbrella. To add to this, Kinley mineral water was launched in the year 2000.

The Company ranking up "firsts" in the introduction of Canned and PET soft drinks,

vending machines and backpack dispensers for crowds of cricket supporters.

Ever Since, Coca-Cola India has made significant investments to build and

continually consolidate its business in the country, including new production

facilities, waste water treatment plants, distribution systems and marketing

channels.

Coca-Cola India is among the country’s top international investors, having invested

more than US$ 1 billion in India within a decade of its presence and further pledged

another US$ 100 million in 2003 for its operations.

RED, IN INDIA

Hindustan Coca Cola Beverages Pvt.Ltd., India division under Eurasia Operating

Group has been working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola

Company believes that its success depends on their ability to connect with

consumers by providing them with a wide variety of choices to meet their desires,

needs and lifestyles choices. Company success further depends on the ability of

their people to execute effectively, every day.




COMPANY GOAL

Company goal is to use the Company’s asset –company brands, financial strength,

unrivaled distribution system, global reach and talent and strong commitment of

our management and associates-to become more competitive and to accelerate

growth in manner that creates value for our shareowners.

3.2 COCA-COLA PORTFOLIO




3.3 CHRONOLOGICAL INCIDENT IN THE DEVELOPMENT OF


Glass PET Can Fountain

200 ml 500 ml 330 ml Various Sizes

300 ml500 ml + 100 ml free

500 ml 1L+ 200 ml free

1000 ml 1.5 L

2 L



SOFT DRINKS:-

1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation mineral waters.

1819 The "soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 A manual hand & foot operated filling & corking device, first used for bottling soda water.

1851 Ginger ale created in Ireland.

1861 The term "pop" first coined.

1874 The first ice-cream soda sold

1876 Root beer mass produced for public sale.

1881 The first cola-flavored beverage introduced.

1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used to produce glass bottles.

1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.


http://inventors.about.com/library/inventors/blpepsi.htm

http://inventors.about.com/library/inventors/blcocacola.htm

http://inventors.about.com/library/inventors/bldrpepper.htm

http://inventors.about.com/library/inventors/bl_root_beer.htm

http://inventors.about.com/library/weekly/blginger_al.htm

http://inventors.about.com/library/inventors/blsodafountain.htm



1919 The American Bottlers of Carbonated Beverages formed.

1920 The U.S. Census reported that more than 5,000 bottlers now exist.

Early 1920's The first automatic vending machines dispensed sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.

1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 Up".

1934 Applied color lab

els first used on soft drink bottles, the coloring was baked on the face of the bottle.

1952 The first diet soft drink sold called the "No-Cal Beverage" a ginger ale sold by Kirsch.

1957 The first aluminum cans used.

1959 The first diet cola sold.

1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

1963 The Schlitz Brewing company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio.

1965 Soft drinks in cans dispensed from vending machines.

1965 The resaleable top invented.


http://inventors.about.com/library/inventors/bl7up.htm

http://inventors.about.com/library/inventors/blvendingmachine.htm



1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.

1970 Plastic bottles are used for soft drinks.

1973 The PET (Polyethylene Terephthalate) bottle created.

1974 The stay-on tab invented. Introduced by the Falls City Brewing Company of Louisville, KY.

1979 Mello Yello soft drink is introduced by the Coca Cola Company as competition against Mountain Dew.

1981 The "talking" vending machine invented.

3.4 THE VALUE CHAIN




3.5 BUSINESS MODEL OF COCA-COLA

Manufactures Concentrate

Beverage Base & Syrup

Manufactures Finished

Bottle/Can Fountain syrup

3.6 INTRODUCTION TO SOFT DRINKS IN INDIA

Gold Spot considered as the first soft drink, established 50 years ago before all

empowering Coca-Cola entered the company to dominate the scene. It faced no

competition and its euphoric image built up in western countries helped it get

ready clientele & glamour. Parle export private ltd. should be regarded as the first


The Coca-Cola Company

Bottler

Customer

Consumer



Indian company introducing limca a lemon drink complimentary to their well

entiemched Gold Spot in 1970 which got moderate success. However, before this, it

had also introduced Cola-Pepino which was withdrawn in face tough competition

from Coca-cola.

When Coca-cola bid farewell in 1977, Indian market was open for various cold

drinks and several companies came forward pushing the different in the market.

Parle people introduced their Cola-Thumps Up with a mightily bang saying “Happy

days are here again” as if happy days went away with Coca-cola pure drinks of

Delhi, also without loosing much time introduced pure drinks with Campa Orange

and Campa Lemon. Modern bakeries interested the market Double Seven, Mohan

Meakings with Marry and Pick Up & McDowell with Thrill, Rush and Sprint and

Indian Market where there was competition previously a cut throat competition

and heavy advertising was on. Each one was trying their best to be come under one

company with “A Class” products in the field of soft drink business, now after a long

gap; Govt. of India had given permission to the Coca-Cola to start their business in

India. Coca-Cola came with Parle to do business on the Indian soil. They are trying

best regaining its prestige which it had before.

3.7 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. The soft drinks market till early 1990s was in hands of domestic players like

Campa, Thumps up, Limca etc but with opening up of economy and coming of MNC

players Pepsi and Coke the market has come totally under their control.

The distribution network of Coca Cola had6.5 lakhs outlets across the country in

FY00, which the company is planning to increase to 8 lakhs by FY01. On the other

hand Pepsi Co's distribution network had 6 lakhs outlets across the country during

FY00 which it is planning to increase to 7.5 lakhs by FY01.

3.8 MARKET BIFURCATION OF SOFT DRINKS

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.




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 38% can

be divided into 4 categories based on the types of flavors available, namely:

Orange, Cloudy Lime, Clear Lime and Mango.

non cola product, 38

cola product, 62

non cola product

cola product




3.9 PRODUCTS & DISTRIBUTION

Coca Cola Company manufactures and sells beverage concerates, sometimes

referred to as “beverages bases” and syrups, including fountain syrups, and

finished beverages.

As used in this report:

“Concentrates” means flavoring ingredients and depending on the

products, sweetners used to prepare syrups or finished beverages;

“syrups” means the beverages ingredients produced by combining

concentrates and, depending on the product,

sweetners and added water;

“Fountain syrups” means syrups that are sold to fountain retailers, such as

restaurants, that use dispensing equipment to mix the syrups with

sparkling or still water at the time of purchase to produce finished

beverages that are served in cups or glasses for immediate consumption;

“Sparkling beverages” means nonalcoholic ready to drink beverages with

carbonation, including energy drinks and carbonated waters and flavored

waters;




“Still beverages” means nonalcoholic beverages without carbonation,

including non-carbonated waters, flavored waters& enhanced waters,

juices & juices drinks, teas, coffees, and sports drinks.

3.10 MISSION, VISION & VALUES

Coca Cola mission, vision and values outline who they are, what they seek to

achieve, and how they want to achieve it. These provide a clear direction for the

Company and help ensure that they are all working toward the same goals.

MISSION

Everything Coca Cola do is inspired by their enduring Mission:

To Refresh the World...in body, mind, and spirit.

To Inspire Moments of Optimism...through their brands and their actions.

To Create Value and Make a Difference...everywhere they engage.

VISION

To achieve sustainable growth, Coca Cola has established a Vision with clear




goals:

Planet : Being a responsible global citizen that makes a difference.

Portfolio: Bringing to the world a portfolio of beverage brands that

anticipate and satisfy Peoples' desires and needs.

Partners: Nurturing a winning network of partners and building mutual

loyalty. Profit: Maximizing return to shareowners while being mindful

of our

VALUES

Coca Cola is guided by shared Values that they will live by as a company and as individuals:

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”




3.11 GET TO KNOW OUR LEADERS

Leading the Industry & Refreshing the World Responsibly

Since Coca Cola first soda fountain sales in 1897, they have been a driver of marketplace innovation and an investor in local economies. Today they lead the beverage industry with over 450 brands -- including four of the world's top-five sparkling brands. But while their business opportunities are enormous, their commitment to their consumers and the communities in which they operate is even greater.

E. Neville Isdell, named chairman and chief executive officer in June 2004, leads them into the new century with a firm commitment to the values and spirit of the world's greatest brand. With his proven leadership and the talent and experience of their management team, they will continue our mission to provide quality beverages while helping to improve lives around the world.

Board Of Directors:

E. Neville Isdell : - 12th Chairman of the Board of Directors & CEO.

Muhtar Kent : - President & Operating Officer.

Herbert A. Allen : - President & CEO Allen & Company Inc.


http://www.thecoca-colacompany.com/ourcompany/bios/bio_20.html

http://www.thecoca-colacompany.com/ourcompany/board_kent.html

http://www.thecoca-colacompany.com/ourcompany/board.html

http://www.thecoca-colacompany.com/ourcompany/board.html



Ronald W. Allen : - Advisory Director, Former Chairman of the Board Allen & Co.

Cathleen P. Black : - President, Hearst Magazines

Barry Diller : - Chair of the Board & CEO Inter Active Corp.

Alexis M. Herman : - Chair & CEO New Ventures,LLC.

Donald R. Keough : - Non Executive Chair of the Board Allen & Co. Inc.

Donald F. McHenry : - Distinguished Proff. In the Practice of Diplomacy &Internal

Sam Nunn : - Co-Chair & CEO Nuclear Threat Initiative.

James D. Robinson III : - General Partner, RRE Ventures, President, J. D. Robinson, INC.

Peter V. Ueberroth : - Investor & Chairman, Contrarian Group Inc.

Jacob Wallenberg : - Chair of the Board, Investor AD.

James B. Williams : - Former Chairman of the Board & CEO Sun Trust Bank Inc.

3.12 BEVERAGE PRODUCTS















Coca Cola Company continues to expand Its beverage portfolio, as well as packaging

options and sizes, in order to meet consumers' evolving needs and preferences.

Coca Cola currently offer more than 2,800 beverage products around the world.

In addition to sparkling drinks, Coca Cola increasingly offer juice and juice drinks,

waters, sports and energy drinks, teas and coffees, soy-based drinks and beverages

with added nutritional benefits. They market four of the world's top five

nonalcoholic sparkling brands: Coca-Cola®, Diet Coke®, Sprite® and Fanta®. In 2006,

Coca Cola globally ranked:

No. 1 in Sales of Juice and Juice Drinks

No. 1 in Sales of Ready-to-Drink Coffees and Teas

No. 2 in Sales of Sports Drinks

No. 3 in Sales of Water

Coca cola also continue to broaden the range of low- and no-calorie alternatives

that they provide to help people manage their caloric intake. And they offer an

increasing variety of package sizes to allow consumers to manage their

consumption. they continue to expand into beverages with added health and

nutrition benefits such as vitamins and nutrients. Some examples around the world

include the following:

Health Works in Hong Kong

Ipsei in Germany

Minute Maid with added Vitamin D in the U.S.

Odwalla in the U.S.




Minute Maid ready-to-drink milk beverages in Mexico

Aquarius Active Diet functional water supplement in Japan

They are also conducting exploratory programs to help address malnutrition with

fortified products. Scientists working with their Beverage Institute For Health and

Wellness developed Nurisha, a water-soluble powder of 12 vitamins and minerals

to add to beverages, and conducted clinical trials in Botswana and Peru. Their first

beverage fortified with Nurisha is now in trials in South African schools, and they

are looking for opportunities to expand it and other fortified beverages in other

countries.

3.13 SWOT ANALYSIS

Strength

Coca Cola competitive strengths include leading brands with a high level of

consumer acceptance, a worldwide network of bottlers & distributors of company

products, sophisticated marketing capabilities; & a talented group of dedicated

associates.

Weakness

Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal,

with the second & third calendar quarters accounting for highest sales volumes.

The volume of sales in the beverages business may be affected by weather

conditions.


http://www.thebeverageinstitute.org/

http://www.thebeverageinstitute.org/



Opportunities

Over the next several years Soft Drinks Industry’s growth is expected to out pace

the growth of the world economy. By 2010 is projected to eclipse $650 billion in

total revenue. There is tremendous opportunity to grow our sparkling beverages in

both developed & emerging markets.

Threats

Coca Cola Company competes in the nonalcoholic beverages segment of the

commercial beverages industry. Based on internally available data & a variety of

industry sources, Coca Cola believe that in 2007, worldwide sales of Company

products accounted for approximately 10% of total worldwide sales of nonalcoholic

beverages products. The nonalcoholic beverages segment of the commercial

beverages industry is highly competitive, consisting of numerous firms.

A STRONG YEAR

The following pages tell the story of a company delivering consistent performance

that is well-balanced across markets, categories, customers and products -- a

company that is moving forward with a clear strategic agenda. In 2007, The Coca-

Cola Company earned $2.57 per share, an increase of 19 percent. Unit case volume

grew 6 percent. And net operating revenues grew 20 percent to $28.9 billion.

We took several key steps in 2007, including

strengthening our sparkling portfolio with new brands and brand

extensions;




expanding our still portfolio with strategic acquisitions and innovations;

improving our capabilities in consumer marketing, commercial leadership

and franchise leadership;

Creating a more sustainable future through more efficient energy, water

and operational practices.

3.14 BUILDING OUR CAPABILITIES

A year ago in this report, we said we were going to fuel growth by creating

inspirational consumer marketing, providing enhanced value to millions of retail




partners and to our bottling partners, who make up the world's largest and most

powerful beverage distribution network.

The men and women of The Coca-Cola Company, working closely with our

dedicated bottling partners around the world, delivered on our commitments with

great discipline and skill. Our product mix is the strongest it has ever been, our

innovation pipeline is growing, and our brands are winning again at the point of

sale.

Our progress in consumer marketing and commercial leadership has renewed

interest in our expanding portfolio among shoppers, retail customers and our

bottling partners. Creative marketing is part of our DNA and has always been our

core competency in eras of success.

In the past year, with "The Coke Side of Life," Happiness Factory-The Movie and

other award-winning marketing programs, we reinvigorated the energy and

optimism at the heart of our brands. We also invited our consumers to experience




the magic and history of the world's most valuable brand at the highly successful

new World of Coca-Cola, which opened this past year in Atlanta.

3.15 ENHANCING THE COMMUNITIES WE SERVE

We recognize that we cannot have a healthy and growing business unless the

communities we serve are sustainable themselves. Careful consideration of

environmental, economic and social factors plays into all our decision making and

resulted in a number of new partnerships to support the health of our business and

our planet. Across the Coca-Cola system, we made significant progress in reducing

our water, packaging and energy imprint.

Water is essential to our business. In 2007, we set the ambitious goal to return the

water we use, in our beverages and in their production, back to nature. And our

expanded global partnership with World Wildlife Fund (WWF) aims to help

conserve seven of the world's most important watersheds, as well as to further

improve water efficiency in our operations and strengthen our climate protection

initiatives. Additionally, we signed The CEO Water Mandate, a partnership with the

United Nations Global Compact that commits companies to help protect and

preserve freshwater resources by making water-resource management a strategic

priority throughout their operations and supply chain.

We see packaging not as waste, but as a valuable resource for future use. In 2007,

we established a goal of recycling or reusing 100 percent of our PET* packaging in

the United States. We took an important step toward this goal through a major

investment in the world's largest PET bottle-to-bottle recycling plant in South




Carolina and the launch of a new recycling business called Coca-Cola Recycling LLC

led by our bottling partner, Coca-Cola Enterprises Inc. In India, we are partnering

with the Indian Association of Plastic Manufacturers in significant PET recycling

initiatives in more than 100 locations across the country. And in Brazil, which

recycles nearly 50 percent of PET containers, the Company remains a long-time

supporter of CEMPRE, a nonprofit association dedicated to the promotion of

recycling and waste management.

We also are scaling up our efforts to reduce carbon emissions. We are committed

to growing our business, without growing our carbon footprint. In 2007, we

launched Project ESKO to reduce emissions in manufacturing and drive productivity

improvements. For example, at our 2-million-square-foot world headquarters in

Atlanta, we are working to reduce energy consumption by 23 percent. These efforts

are expected to eliminate more than 10,000 metric tons of carbon dioxide

emissions each year, which is the equivalent of removing 2,000 cars from the road.

And we are using our voice on the world stage to call for responsible standards on

greenhouse gas emissions through our support of the United Nations Global

Compact “Caring for Climate” leadership platform and the “Bali Communiqué.”

*Polyethylene terephthalate (PET)




Our commitment to being a responsible company includes being a responsible

employer. In 2007, we launched our global Workplace Rights Policy and Human

Rights Statement, guided by the principles of the International Labour.

Organization and other well-known international organizations. Our Workplace

Rights Policy formalizes our long-standing commitment to ensure that each of our

90,500 associates around the world is treated with dignity and fairness.

3.16 THE ROAD AHEAD




To reach our peak performance in 2008, we will focus on five strategic priorities:

First, we will continue to grow our leadership in sparkling beverages, the core of

our business today and tomorrow. We know there is tremendous opportunity to

grow our sparkling beverages in both developed and emerging markets. Second, we

will drive even faster growth in our still beverage portfolio by adding new functional

benefits, developing affordable formulations, pursuing relevant bolt-on acquisitions

and seeking margin enhancements. Juice and juice drinks, sports drinks, water,

coffees, teas and emerging categories offer exciting opportunities for future growth

around the world.

Second, we will continue to generate and take advantage of the balanced growth

we have achieved across our portfolio and the markets we serve. In the world's

emerging economies, our business is buoyed by growing urbanization, rising

middle-class consumers and the corresponding conversion to ready-to-drink

beverages that meet new lifestyle needs. In North America, our flagship market, we

will continue to focus on renewing the health of our business.

3.17 OPERATING GROUP

The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating

Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific,

Bottling Investments. Certain prior year amounts have been reclassified to conform

to the current year presentation.




1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)

Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded

an approximate $65 million increase in accrued income taxes in their consolidated

balance sheet for unrecognized tax benefits, which was accounted for as a

cumulative effect adjustment to the January 1, 2007 balance of reinvested earnings.

2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)

No.158, "Employers' Accounting for Defined Benefit Pension and Other

Postretirement Plans -- an amendment of FASB Statements No. 87, 88, 106, and

132(R)."

3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and

Disclosure Guidance for the Foreign Earnings Repatriation Provision within the

American Jobs Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company

to record the tax expense associated with the repatriation of foreign earnings in

2005 when the previously unremitted foreign earnings were actually repatriated.

4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable

Interest Entities," effective April 2, 2004.




3.18 ORGANIZATIONAL STRUCTURE

Coca Cola in India




3.19 RED i.e... A Right Execution Daily

3.19.1 CONCEPT OF RED

Hindustan Coca Cola Beverages Pvt Ltd., India division under Eurasia Operating

Group has been working on RED i.e. Right Execution Daily since FEB 2006.

Coca Cola Company believes that its success depends on their ability to connect

with consumers by providing them with a wide variety of choices to meet their

desires, needs and lifestyles choices. Company success further depends on the

ability of their people to execute effectively, every day.

3.19.2 DETAIL ANALYSIS OF RED: -

Right Execution Daily is segregated under three important point they are as follows:

VisiCooler: -

Visicooler is the Sales Generating Assets, which not only make the beverages

product chilled which the company served its customers at the purchase point but




also attract the number of shoppers or consumers in a given universe to buy

company products.

In the visicooler, attention are given on the following points: -

The visicooler is as per standard or not.

The visicooler as per prime position or not.

Is the visicooler in a working condition?

Is the visicooler light working?

Is the visicooler 100% pure?

Is the visicooler brand order compliant?

Availability: -

Under Availability, company ensures that their all products are available at the shop

as per the standards of the company to serves the consumers or the shoppers. The

main focuses of Availability are as follows: -

The company products are available at the shop in full flavor & range.

Consumers have enough choice to select the company’s beverage products

as per their desire.




10 to 15% of total shoppers are those who drink only particular brand &

particular brand & particular flavor. So, company doesn’t want to loose that

consumer also.

Activation: -

Activation is the important ingredients under RED. It is a techniques by which the

sales are generated. It is a complex set of activity by which the shoppers are

stimulated to come at the shop. By proper activation buyers are induced to come at

the purchase point.

3.19.3 Important tools for activation

Important tools for activation are Counter Top, Aerial Mobile Hanger, Crate Display,

Road Standee, Flange, Signage, Branded Menu Cards, Combo Communication, Flex

or Glow Sign Board, Three Tire Display Rack, Price Communication.

Under the Activation, the attention is given to ensure the following points at the purchase point: -

Prices of HCCBPL products communicated in a clear & visible manner.

DPS/Flex Board/Glow Sign Board, Flange, or Road Standee, at least 1, should be in a proper condition.




Ariel Mobile Hanger with at least 4 mobiles displayed at stores front in Convenience Stores.

OBM/Drinking Shot Communication present at each store.

Table Top display unit/Hanging Rack, at least 1 should be pure & should be at least 50% charged in Convenience Stores.

Self Display Rack in which minimum 8 facings of any PET displayed & visible in Grocery.

Rack should be pure & should be at least 50% full in Grocery.

Combo Communication should be present in E&D.

Branded Menu Cards with KO (cola) Beverages Menu (at least 5 Menu Cards)/Menu Board (at least 1) with KO beverages listing.

3.19.4 TOOLS USED FOR CONTROL UNDER RED

Market Developer RED Tracker

Survey conducted by Individual Agency

Market Developer RED Tracker

It is a tool by which the Market Developer, checks its performance. It shows

where the Market Developer is put their efforts, by which the RED Score will be

increasing. It throws light on, where are the Execution Team lacking. It also aids




to the Management in tuning the Market Execution Team. There are two parts of

the Market Developer RED tracker: -

Market Developer Permanent Journey Plan

It is a tool, which fix the activities of the Market Developer for the given period.

In the Market Development Permanent Journey Plan, the information about the

following things is given: -

Permanent Journey Plan for the Market Developer

Name of the Market Developer

Distributor/Direct Route Name

Sales Team Leader Name

Sales Trainer Name

The Town/City where the execution plans are executed.

Month of the Execution Plan

No. Of Outlet visited at a particular date Daily Market Report

It is a survey conduct by the Market Developer himself. Market Developer

has to prepare this Report before he starts his execution activities at the

Customer Place. It helps to get the actual figure & also help to check the

execution impact of the previous day.




3.19.5 RED SCORING

RED Scoring is the techniques by which the quality of services & performance

executed by the company’s personnel are enumerated in terms of numbers.

The total marks assigned under RED are 100 and these total marks are segregated

among the three factors of the RED, which are as follows: -

VISICOOLER = 30 MARKS

AVIABILITY = 50 MARKS

ACTIVATION = 20 MARKS

For RED Scoring sheet: Please refer Appendix…Point No. 7.3

3.20 CASE STUDY OF COCA COLA

Coca Cola India has been working on RED (Right Execution Daily) since 2006. In Patna Region RED was introduced in FEB 2006. RED is an integration of Sales




Management & Marketing Execution Plan. By this, company not only has been increasing its Sales & Market Shares but it also has proved as a media for the company to come closer to its Customers & Shoppers.

This case of Coca Cola Company is related to the Patna Region where the company is the leader in the both the Market Shares & the Sales Volume. After RED was introduced in Patna, the Company continuously tried to improve its RED Score Card.

Its RED Score Card shown in April 2008, in Patna Region (especially Exhibition Road, Pirmohani, Goriatoli & New Market) was 34.5% (Approx), which was not near to the Standard i.e. 50, fixed for the month.

The Standard for the month May was fixed 60 by the Sales Management for this Region. But the result was negative for this month i.e. 22.3%(approx). The RED Score declined by 63% in this month as it was fixed by sales management.

It put extra pressure on Sales Execution Team to uplift this Score in the month of June. So, it was the challenge for the Sales Execution Force to regain its prestige but still they didn’t achieve the minimum Standard of 60% but somehow manage the score 31.1% which was increased from the previous month.




3.21 SURVEY REPORT CONDUCTED BY INDIVIDUAL AGENCY

FOR THE MONTH MARKSAPRIL 34.5MAY 22.3JUNE 30.1




CHAPTER 4

DATA COLLECTION, ANALYSIS & INTERPRETATION

4.1 INTRODUCTION:




Both Primary as well as secondary data has been collected. Here I am going to give

the analysis of Primary data first and then the analysis of secondary data will follow.

4.2 ANALYSIS OF PRIMARY DATA:

Primary data is in the form of a questionnaire which has been collected by asking

civilians to fill in a questionnaire. Below given is the analysis of many of the

questions in the Questionnaire. The Questionnaire is present in the Appendix.

Question No. 1.a).…..Refer question in Appendix.

Analysis:

Table: On the basis of Age




Table 4.2.1.a

Figure: On the basis of Age

Fig. 4.2.1.a

Interpretation:

In the above fig. I have done survey on the basis of age group15-25, 26-35,

36-45, 46-55 where the no. of consumers are 68, 41, 23, 18 respectively.

Question No. 1.b)……..Refer question in Appendix.


Age No. of Persons % of Respondents

15 - 25 68 45.33%26 - 35 41 27.33%36 - 45 23 15.33%46 - 55 18 12.00%

150 100%



Analysis:

Table: On the basis of Gender

Table 4.2.2.b

Figure: On the basis of Gender

Fig. 4.2.2.b

Interpretation:

In the above fig. the respondents are grouped on the basis of gender in which

male corresponds to 120 and female 30.


Gender No. of Persons

Male 120Female 30

Total 150



Question No. 1.c)……..Refer question in Appendix.

Analysis:

Table: On the basis of Occupation

Table 4.2.3.c

Figure: On the basis of Occupation

Fig. 4.2.3.c

Interpretation:


Occupation No. of Persons

Student 45Others 29

Servicemen 46Businessmen 30

Total 150



In the above fig. respondents are classified on the basis of occupation in which

there are 45 students, 46 servicemen, 30 businessmen and the rest 29.

Question No.2……..Refer question in Appendix.

Analysis:

Table: On the basis of Preference

Table 4.2.2

Figure: On the basis of Preference

Fig. 4.2.2


Yes / No No. of Respondents

Yes 131No 19

Total 150



Interpretation:

In the above fig., 131 repondents take beverages and the rest don’t prefer to

take.

Question No. 3……..Refer question in Appendix.

Analysis:

Table: On the basis of Choice

Table 4.2.3

Figure: On the basis of Choice


Type of Cold Drink No. of Respondents

Coca-Cola 57Pepsi 31Frooti 39Others 23Total 150



Fig. 4.2.3

Interpretation:

In the above fig., most repondents (i.e) 57, prefer to take Coca Cola , 39 Frooti, 31

Pepsi and others 23.


Analysis:

Table: On the basis of Likeness

Table 4.2.5



Thumps Up 45Coca Cola 30

Sprite 22Maaza 53Total 150



Figure: On the basis of Likeness

Fig. 4.2.5

Interpretation:

In the above fig., 53 people like to take Maaza, 45 Thumps up, 30 Coca Cola and

22 Sprite.


Analysis:

Table: On the basis of characteristics


Characteristics No. of Respondents

Quality 40Taste 78

Benefit 10To quench thirst 22

Total 150



Table 4.2.6

Figure: On the basis of characteristics

Fig. 4.2.6

Interpretation:

In the above fig., almost everyone prefers to take the beverages on th basis of

Taste, then quality, thirdly to quench thirst and lastly for its benefits.


Analysis:

Table: On the basis of Sources of Beverages


Sources No. of Respondents

Advertising 100Friends 39

Newspapers 01Others 10Total 150



Table 4.2.7

Figure: On the basis of characteristics

Fig. 4.2.7

Interpretation:

In the above fig., consumers know about the product thru advertising that is 100

respondents, 39 thru friends, 1 thru newspapers and the rest from other means.


Analysis:

Table: On the basis of Urge(“ Prefer More Often”)




Table 4.2.8

Figure: On the basis of Urge(“ Prefer More Often”)

Fig. 4.2.8

Interpretation:

In the above fig., 43 prefer to take Thumps up and the 2’nd is 37 Maaza Fans


Analysis:



Thumps Up 43Limca 12Fanta 12Maaza 37Sprite 21

Coca Cola 25Total 150



Table: On the basis of Satisfaction of availability

Table 4.2.10

Figure: On the basis of Satisfaction of availability

Fig. 4.2.10

Interpretation:

In the above fig., 113 respondents are satisfied with the availability offered by the

Coca Cola Company and the rest don’t prefer it.



Satisfaction of availability

No. of Respondents

Yes 113No 37

Total 150



Analysis:

Table: On the basis of right condition of product

Table 4.2.11

Figure: On the basis of right condition of product

Fig. 4.2.11

Interpretation:

In the above fig., 113 respondents find Coca Cola product in the right condition

and 37 didn’t find it.


Right condition of Product

No. of Respondents

Yes 113No 37

Total 150




Analysis:

Table: On the basis of problem with the price tag affixed

Table 4.2.13

Figure: On the basis of problem with the price tag affixed

Fig. 4.2.13

Interpretation:


Problem with the price tag affixed

No. of Respondents

Yes 64No 51

Can’t Say 35Total 150



In the above fig., 64 repondents have issues regarding the price affixed by the

Company and 51 are not while the rest are in doubt.


Analysis:

Table: On the basis of factor

Table 4.2.14

Figure: On the basis of problem with the factor

Fig. 4.2.14


Factor No. of Respondents

Person Factor 64Advt. Factor 20

To remain Chill 50Parties 16Total 150



Interpretation:

In the above fig., 64 repondents take beverages on the personal front while 50

others take it to remain chill while the others take it on other basis.


Analysis:

Table: On the basis of purchase quantity

Table 4.2.15

Figure: On the basis of purchase quantity


Quantity No. of Respondents

200 ml 74300 ml 44500 ml 22

1.5 litres 10Total 150



Fig. 4.2.15

Interpretation:

In the above fig. 74 respondents take 200ml while 300ml is preferred by 44

others, 500ml by 22 others and the rest 10 on 1.5 litres.


Analysis:

Table: On the basis of purchase decisions

Table 4.2.17

Figure: On the basis of purchase decisions


Decision Maker No. of Respondents

Own Judgement 95friends 24

Family Members 12Shopkeeper 14Any Other 05

Total 150



Fig. 4.2.17

Interpretation:

In the above fig., 95 people take it on own judgment, 24 by friends, 14 by

shopkeepers, 12 by family members and the rest five members.


Analysis:

Table: On the basis of brand switching

Table 4.2.18


Go for Brand Switching?

No. of Respondents

Yes 93No 35

Can’t Say 22Total 150



Figure: On the basis of brand switching

Fig. 4.2.18

Interpretation:

In the above fig., majority 93 will switch over to the other brand, 35 will not

switch over and the rest cant say anything.


Analysis:

Table: On the basis of awareness of promotional schemes

Table 4.2.19


Awareness of Promotional Schemes

No. of Respondents

Yes 95No 55

Total 150



Figure: On the basis of awareness of promotional schemes

Fig. 4.2.19

Interpretation:

In the above fig., 95 people are aware of the promotional schemes while he rest

are not aware.


Analysis:

Table: On the basis of activation board attraction


Go for Brand Switching?

No. of Respondents

Yes 75No 36

Didn’t Notice 39Total 150



Table 4.2.20

Figure: On the basis of activation board attraction

Fig. 4.2.20

Interpretation:

In the above fig., 75 people get attracted on account of activation boards while 36

don’t get attracted and the rest 39 didn’t notice it.


Analysis:

Table: On the basis of properly visualizing the visicooler


See Visicooler in proper order?

No. of Respondents

Absolutely 79Yes, but not always 30

Hardly ever 13Can’t say, maybe 21

Never 07Total 150



Table 4.2.22

Figure: On the basis of properly visualizing the visicooler

Fig. 4.2.22

Interpretation:

In the above fig., 79 see the visicooler in proper condition while the rest see it

frequently, 21 are unable to say, 13 see it hardly ever while the rest 7 never see.

CHAPTER 5

CONCLUSIONS & SUGGESTIONS




5.1 CONCLUSIONS:

The outcome of any research is the systematic and well conclusion (i.e) what

one can gain from it. This report is truly a unique specimen of the

aforementioned statement. Efforts in the form of Survey and survey data have

been collected after lot of hectic work spanning may days. So I have done my

level best in going ahead with this project and I take the honour of undertaking

this research.

After analysis & interpretation, I came to know that:

1) Most of the respondents prefer to take the beverage on the basis of taste.

2) Out of the whole lot of the Coca Cola products most of the people prefer

to take Maaza in Large quantities.

3) Majority of the people know the beverages of Coca Cola thru

advertisements.

4) It is heartening to notice that the availability of the Coca Cola Product is

excellent.

5) The Coca Cola products are always found in its optimum condition in

which it is expected to be.

6) It has come to my notice that most of the customers are unsatisfied with

the price of the beverages.




7) Almost all the respondents take the beverages on the basis of personal

judgment.

8) Also it is good to observe that most of the people are aware of the

promotional schemes offered by the Company.

9) All the products in the Visicooler are kept in a systematic way(CLOJ).

10)It has been observed that most of the people visualize the activation

boards properly in front of the Outlets.

5.2 SUGGESTIONS:

1) Well, I would advise the Company to reduce the price affixed to each and

very of beverages so that all the classes and categories of the people can

have the pleasure of drinking the Coca Cola product.

2) Most of the respondents wants to increase the flavours of the Coca Cola

Ionized beverages as they have been consuming the same flavor over a

period of time.

3) Promotion and promotional schemes need to be propagated in the rural

areas so as to tap the unsaid and unclaimed potential of the rural life and

habitat.

CHAPTER 6

BIBLIOGRAPHY




6.1 BOOKS

1) Philip Cotler, “Principle of Marketing Management”, 5th

Edition, Prentice Hall of India Pvt. Ltd., New Delhi.

2) Ramaswamy, “Marketing Management”,

6.2 WEBSITES

www.financialexpress.com

www.businessworld.com

www.cocacolacompany.com

www.cocacolaindia.com


http://www.cocacolaindia.com/

http://www.cocacolacompany.com/

http://www.businessworld.com/

http://www.financialexpress.com/



CHAPTER 7

APPENDIX

7.1 Questionnaire

Dear Respondent,

A survey is being carried out on Impact of “RED-Right Execution

Daily” on the sales of Coca-Cola product: A case study of PATNA MARKET. It is the

part of my academic, which is carried under my Department of Business

Administration and Research, S.S.G.M.C.E.SHEGAON. I will be thankful if you would




please convey yours views on the following questions referred and Co-operate me

for bringing a grand success.

RAHUL

TRIVEDI

[ M.B.A

Marketing]

1. Consumer details:-

a) Name:-

…………………………………………………………………………

…………………………

b) Age:-

…………………………………………………………………………

……………………………

c) Gender:-

…………………………………………………………………………

d) Occupation:-

…………………………………………………………………………

……………….




e) Address:-

…………………………………………………………………………

……………………

2. Do you take any beverage or not?

a) yes [ ] b) no [ ]

3. Which beverages do you prefer to take?

a) coca-cola [ ] b) pepsi [ ] c) frooti [ ] d) real juice [ ]

4. Do you know anything about flavours of beverages of coca-cola?

a) coke [ ] b) lemon [ ] c) orange [ ] d) juicy [ ]

5. Which flavour do you like the most?

a) thumps-up [ ] b) coca-cola [ ] c) sprite [ ] d) maaza [ ]

e) others [ ]

6. You take beverages on what basis?

a) quality [ ] b) taste [ ] c) benefits [ ] d) to quench thirst [ ]

7. From what sources you know about the beverages?

a) advertising [ ] b) friends [ ] c) newspapers [ ] d) others [ ]

8. Out of the beverages given below which one do you prefer more often:- a)

Thumps –up [ ] b) Limca [ ] c) Fanta [ ] d) Maaza [ ]

e) Sprite [ ] f) Coca-Cola [ ]

9. How many times do you consume the beverages in a day?

a)once [ ] b) twice [ ] c) thrice [ ] d) more than four times [ ]

10. Are you satisfied with the availability offered by the coca-cola company of

the selected beverages types?

a) yes [ ] b) no [ ]




11. Do you find coca-cola product in the right condition when you ask for it? a)

yes [ ] b) no [ ]

12. Do you prefer to recommend the coca-cola beverages’ to your friends or

family members?

a) yes [ ] b) no [ ]

13. Do you have any problem regarding the price affixed by the price tag of

coca-cola product?

a) yes [ ] b) no [ ] c) can’t say [ ]

14. You take beverages on account of which factor?

a) personal factor [ ] b) advertisement impact [ ]

c) to remain chill [ ] d) parties [ ]

15. You purchases coca-cola bottles in what quantity?

a) 200ml [ ] b) 300ml [ ] c) 500ml [ ] d)1.5ltrs[ ]

16. Do you prefer to stock coca-cola product at homes to take a stand when you

desire?

a) yes [ ] b) no [ ]

17. Who is in your opinion taking decision relating to purchase?

a) own judgment [ ] b) friends [ ] c) family members [ ] d) shop

keepers [ ] e) any others [ ]

18. If the current brand is not available then will you switch over to the other

brand?

a)yes [ ] b) no [ ] c) can’t say [ ]

19. Are you aware of any promotional schemes offered by the company for you?

a) Yes [ ] b) no [ ]




20. Do you visualize any attractions in the form of activation boards or hoardings

or banners in front or above the outlets in which cold drinks from the Coca

Cola Inc. are being sold?

a) Yes [ ] b) No [ ] c) Didn’t notice [ ]

21.Whether activation boards or hoardings or banners encourages you to

consume Coca-Cola?

a)Always [ ] b)Sometimes [ ] c)Rarely [ ]

22.When inside any Coca Cola Drink Outlet, do you see the Visicooler in proper

condition?

a) Absolutely [ ] b) Yes, but not always! [ ] c) Hardly ever [ ]

d) Can’t say, maybe! [ ] e) Never [ ]

23.Do you suggest any improvement in the current version of coca-cola beverages

(please specify):-………………………………....................................

………………………………………………………………………………………

………………………………..




7.2 FINANCIAL OVERVIEW OF COCA-COLA COMPANY:

7.2.1 Unit Case Data

Year Ended December 31,

2007 2006 2005 2004 2003

Unit Case Volume (in billions)

22.7 21.4 20.6 19.8 19.4

7.2.2 Selected Financial Data


20071 20062 20053 20043,4 2003

(in millions except per share data)

7.2.3 SUMMARY OF OPERATIONS




Net operating revenues

$ 28,857 $ 24,088 $ 23,104 $ 21,742 $ 20,857

Cost of goods sold 10,406 8,164 8,195 7,674 7,776

Gross profit 18,451 15,924 14,909 14,068 13,081

Selling, general and administrative expenses

10,945 9,431 8,739 7,890 7,287

Other operating charges

254 185 85 480 573

Operating income 7,252 6,308 6,085 5,698 5,221

Interest income 236 193 235 157 176

Interest expense 456 220 240 196 178

Equity income -- net 668 102 680 621 406

Other income (loss) -- net

173 195 (93) (82) (138)

Gains on issuances of stock by equity investees

-- -- 23 24 8




Income taxes 1,892 1,498 1,818 1,375 1,148

Net income $ 5,981 $ 5,080 $ 4,872 $ 4,847 $ 4,347

Average shares outstanding

2,313 2,348 2,392 2,426 2,459

Average shares outstanding assuming dilution

2,331 2,350 2,393 2,429 2,462

7.2.4 PER SHARE DATA

Basic net income $ 2.59 $ 2.16 $ 2.04 $ 2.00 $ 1.77

Diluted net income 2.57 2.16 2.04 2.00 1.77

Cash dividends 1.36 1.24 1.12 1.00 0.88

Closing market price on December 31

61.37 48.25 40.31 41.64 50.75




7.2.5 TOTAL MARKET VALUE OF COMMON STOCK

$ 142,289 $ 111,857 $ 95,504 $ 100,325 $ 123,908

7.2.6 BALANCE SHEET DATA

Cash, cash equivalents and current marketable securities

$ 4,308 $ 2,590 $ 4,767 $ 6,768 $ 3,482

Property, plant and equipment -- net

8,493 6,903 5,831 6,091 6,097

Depreciation 958 763 752 715 667

Capital expenditures 1,648 1,407 899 755 812

Total assets43,269 29,963 29,427 31,441 27,410

Long-term debt 3,277 1,314 1,154 1,157 2,517

Shareowners' equity 21,744 16,920 16,355 15,935 14,090




NET CASH PROVIDED BY OPERATING ACTIVITIES

$ 7,150 $ 5,957 $ 6,423 $ 5,968 $ 5,456

7.2.7 Unit Case Data


2007 2006 2005 2004 2003

Unit Case Volume (in billions)

22.7 21.4 20.6 19.8 19.4

7.2.8 Selected Financial Data


20071 20062 20053 20043,4 2003

(in millions except per share data)

7.2.9 SUMMARY OF OPERATIONS

Net operating revenues

$ 28,857 $ 24,088 $ 23,104 $ 21,742 $ 20,857




Cost of goods sold 10,406 8,164 8,195 7,674 7,776

Gross profit 18,451 15,924 14,909 14,068 13,081

Selling, general and administrative expenses

10,945 9,431 8,739 7,890 7,287

Other operating charges

254 185 85 480 573

Operating income 7,252 6,308 6,085 5,698 5,221

Interest income 236 193 235 157 176

Interest expense 456 220 240 196 178

Equity income -- net 668 102 680 621 406

Other income (loss) -- net

173 195 (93) (82) (138)

Gains on issuances of stock by equity investees

-- -- 23 24 8




Income taxes 1,892 1,498 1,818 1,375 1,148

Net income $ 5,981 $ 5,080 $ 4,872 $ 4,847 $ 4,347

Average shares outstanding

2,313 2,348 2,392 2,426 2,459

Average shares outstanding assuming dilution

2,331 2,350 2,393 2,429 2,462

7.2.10 PER SHARE DATA

Basic net income $ 2.59 $ 2.16 $ 2.04 $ 2.00 $ 1.77

Diluted net income 2.57 2.16 2.04 2.00 1.77

Cash dividends 1.36 1.24 1.12 1.00 0.88

Closing market price on December 31

61.37 48.25 40.31 41.64 50.75

7.2.11 TOTAL MARKET VALUE OF

$ 142,289 $ 111,857 $ 95,504 $ 100,325 $ 123,908




COMMON STOCK

7.2.12 BALANCE SHEET DATA

Cash, cash equivalents and current marketable securities

$ 4,308 $ 2,590 $ 4,767 $ 6,768 $ 3,482

Property, plant and equipment -- net

8,493 6,903 5,831 6,091 6,097

Depreciation 958 763 752 715 667

Capital expenditures 1,648 1,407 899 755 812

Total assets43,269 29,963 29,427 31,441 27,410

Long-term debt 3,277 1,314 1,154 1,157 2,517

Shareowners' equity 21,744 16,920 16,355 15,935 14,090

NET CASH PROVIDED BY OPERATING

$ 7,150 $ 5,957 $ 6,423 $ 5,968 $ 5,456




ACTIVITIES

7.3 RED SCHORING SHEETS

7.3.1 RED SCHORING SHEET (Diamond):

About VisiCooler

Diamond

Q. No

E&D Grocery Convenience Remarks

1. Is a Coca Cola Visi/Chest-cooler present?(if answeris No. skip questions 2-7)

2. Is the Visi/Chest-cooler as per standard?

3 3 3 Low Income: 9/10.5/20cs & Med/High Income20/30cs.For

Chest Cooler-10cs+

3. Is the visicooler in the 7 7 7 All channels: At Entrance &




prime position? Outside Shop. Additionally only for E&D outlets-if full face visible from main dining area. No point for Chest Cooler.

4. Is the Visi/Chest-cooler in a working condition?

2 2 2 Should be able to chill products. Switched off coolers deemed as not working. If cooler is in working condition & there is power cut ,marked as working.

5. Is the Visicooler light working?

2 2 2 Light should switch on. No points if light is in working condition, but switch off. No points for Chest Cooler.

6. Is the Visi/Chest Cooler 100% pure?

10 10 10 Coolers should have only Coca Cola Company inside.

7. Is the Visi-cooler brand order complaint?

6 6 6 As per note on CLOJ-K brand order. No points for Chest-Cooler.

TOTAL 30 30 30




7.3.2 RED SCHORING SHEET (Diamond): -

About Availability

Diamond

Q.No E&D Grocery Convenience Remarks

1. Sparkling Soft Drink (SSD) 200 or 300 ml (Cola + 3)

20 20 Min. 6 bottles per brand (Chilled). Can have Cola + 3 in any pack size (200ml or 300ml).A mix packs (200ml+300ml)wont be allowed.




2. SSD, Mobile PET 500/600 ml (Cola +3)

12 18 12 Only SSD: Min 6 bottles per brand, Chilled for E&D/Convenience, & Chilled or warm for Grocery.

3. Maaza RGB (200 or 250 ml)

5 5 Min. 6 bottles (chilled) of either of the pack (200 or 250 ml).

4. Maaza TP 200 ml available

3 3 Min. 6 packets chilled.

5. Juice Mobile (2 flavours) 6 6 6 Min.6 bottles (chilled).

6. Juice Large PET (2 flavours)

6 Min. 6 bottles (Chilled or warm)

7. Can (Diet Coke +1) 4 4 Min. 6 cans (chilled)

8. Large PET 1.25 ltr / 1.5 ltr / 2 ltr (Cola + 3)

20 Min. 6 bottles per brand (Chilled or Warm)

TOTAL 50 50 50

7.3.3 RED SCHORING SHEET (Diamond): - About ActivationE&D




1. Branded Menu cards with KO Beverages Menu (at least 5 Menu Cards) /Menu Boards (at least 1) with KO Beverages Listing

5 Any one Should have KO Beverages Listing.

2. Combo Communication: Combo standee/Combo wall hanging/Menu Board (at least 1 of the 3 options)

5 At least One of the options given.

3. Flange, Road Standee, Flex, GSB, (at least 1 of the 4).

3 At least One of the 4 options given.

Grocery

4. Is there a 3 tier Display Rack with header present? (If answer is No, skip question 5).

5. Is the Rack Pure & Charged? (Should be pure & should be at least 50% full).

8 100% pure & at least 50% charged & with header otherwise no score

6. Shelf Display (other than Rack). Min. 8 facings of any PET displayed & visible.

5 Should be arranged display.

Convenience

7. Table Top Display Unit/or hanging Rack (at least 1, should be pure & at least 50% charged).

5 Should be 100% pure , charged at least 50% , moreover, it should be on /near the front counter, where it is easily visible to the customer




8. Aerial Mobile Hanger 5 With at least 4 mobiles display at storefront.

9. DPS/Flex Board, GSB, Flange, or Road Standee.

3 At least 1 should be in a proper condition.

All Channels

10. OBM/Drinking Shot Communication.

3 3 3 Can be a Separate communication or a part of any activation material relevant to channel.

11. Are prices of HCCBPL products communicated in a clear & visible manner?

4 4 4 Any price communication, either in the form of Visi-Cooler price strips, poster menu boards, tent cards, etc. Should communicate price of at least the top 2 Packs (2 of RGB/Mobile/Large PET/Juice PET/Maaza RGB).

TOTAL

20 20 20




7.3.4 RED SCHORING SHEET (Gold): -

About VisiCooler

Gold

Q. No


1. Is a Coca Cola Visi/Chest-cooler present?(if answeris No. skip questions 2-7)



Chest Cooler-10cs+

3. Is the visicooler in the prime position?

7 7 7 All channels: At Entrance & Outside Shop. Additionally only for E&D outlets-if full face visible from main dining area. No point for Chest Cooler.

4. Is the Visi/Chest-cooler in 2 2 2 Should be able to chill




a working condition?

products. Switched off coolers deemed as not working. If cooler is in working condition & there is power cut ,marked as working.

5. Is the Visicooler light working?






TOTAL 30 30 30




7.3.5 RED SCHORING SHEET (Gold): -

About Availability

Gold
















7. Large PET 1.25 ltr / 1.5 ltr / 2 ltr (Cola + 3)


TOTAL 50 50 50

7.3.6 RED SCHORING SHEET (Gold): - About Activation

E&D

1. Branded Menu cards with KO Beverages Menu (at least 5 Menu Cards) /Menu Boards (at least 1) with KO Beverages Listing

5 Any one Should have KO Beverages Listing.




2. Combo Communication: Combo standee/Combo wall hanging/Menu Board (at least 1 of the 3 options)




Grocery

4. Is there a 3 tier Display Rack with header present? (If answer is No, skip question 5).



6. Shelf Display (other than Rack). Min. 8 facings of any PET displayed & visible.

5 Should be arranged display.

Convenience









All Channels





TOTAL

20 20 20




7.3.7 RED SCHORING SHEET (Silver): -

About VisiCooler

Silver

Q. No


1. Is a Coca Cola Visi/Chest-cooler present? (If answer is No. Skip questions 2-7)



Chest Cooler-10cs+

3. Is the VisiCooler in the prime position?

7 7 7 All channels: At Entrance & Outside Shop. Additionally only for E&D outlets-if full face visible from main dining area. No point for Chest Cooler.

4. Is the Visi/Chest-cooler in a working condition?

2 2 2 Should be able to chill products. Switched off coolers deemed as not working. If cooler is in working condition




& there is power cut, marked as working.

5. Is the VisiCooler light working?






TOTAL 30 30 30




7.3.8 RED SCHORING SHEET (Silver): -

About Availability

Silver
















7. Large PET 1.25 ltr / 1.5 ltr / 2 ltr (Cola +1)


TOTAL 50 50 50

7.3.9 RED SCHORING SHEET (Silver): -About ActivationE&D

1. Menu Board (at least 1)with KO Beverages Listing/Branded Menu Cards with KO Beverages Menu (at least 5 menu cards) /Combo Communication/Table Top Vinly

7 Any of the 4 options is ok.

2. Outside Crate Display (Min 3 crates with wrap).







Grocery

4. Is there any Display Rack with header present? (If answer is No, skip question 5).



6. Outside Crate Display. (Min 3 crates with crate wrap)

3 Crate Wrap Must

7. Shelf Display (other than rack ,min 8 facing of any PET displayed & visible).

3 Should be an arranged display.

Convenience






All Channels








TOTAL

20 20 20

7.4 Outlets Of Training Area

S.N0. Exhibition Road Pirmohani & Goriatoli

New Market

1 Gupta Pan - C./G Uma Cinema-C/D Vijay Paan-C/D

2 Gaurav Res. – E.&D / G Gariblal-C/D H.K. Pan-C/D

3 Talkwell-C/G Patna Dairy-C/D Hayat GEN.-C/G

4 Rajdarbar-E&D/G Dadiji Rest-C/S Shamim-C/D




5 Shivam Kirana-C/G Bharat Paan-C/S Sonu Gen.-C/G

6 Hotel Republic-C/S Galaxy Cigg.-C/S Royal pan- C/D

7 Biryani House-C/S Jagdamba Gen.-C/S Mohan Pan- C/S

8 Bahadur Litti-C/S Prem Hotel-C/S Om Jarda-C/S

9 Pradeep Gen.-Gr./S Preety Paan-C/S Banarsidoodh-C/S

10 JJ STD-C/S Radhekrishna Gen.-C/S Bihar Kirana-C/D

12 Amininfront-C/S Vinod Cigg.C/S Aftab Gen.-C/D

13 Ice & milkbar-C/S Gopal Lassi-C/S Shahbudin Gen.-C/S

14 Gift corner-C/G Gyan Ganga-C/S Parvati Gen.-Gr./D

15 Sweta Gen.-C/G Prasad Pan-C/S Shankar Lassi-C/D

16 Baba Kirana-C/G Manish Paan-C/S Supershahi- C/D

17 Vishno Hotel-C/D Pankaj Gen.-C/D Urmila Med.-C/D

18 Nandkishore Hotel-C/D Gupta Paan-C//S Jaimaa Shakti-C/S

19 Windsor Rest.-E&D/D Sai STD-C/S Rajdhani Hotel-E&D/D

20 Ramfal Paan-C/D Naina Gen.-C/S Shavitri PCO-C/G

21 Contact Point-C/D Jagdamba PCO-C/S Gupta Homeo-C/S


Coca Cola Final Dissertation(2)

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