A

Project Report Study On

“HORIZONTAL EXPANSION OF COCA COLA”

Submitted in Partial Fulfillment

Of Award Of Degree

MBA (Master of Business Administration)

Submitted to: Submitted by :

Fms maiet Arvind Duwa

MAHARISHI ARVIND INSTITUTE OF ENGEENIAREING AND TECHNOLOGY

1

Declaration

I hereby that I have worked on the topic “Analysis of Horizontal Expansion

Strategy of Coke in Jaipur”

All the information that has been collected, analyzed and documented for the

project is authentic possession to me.

I would like to categorically mention that the work here has neither been

purchased nor acquired by any other unfair means. The data and information

existing in this report are accurate and update to the current data, to the best of

our knowledge.

However, for this purpose of the project, information already compiled in many

sources has been utilized.

All information in this report is true representation of what I have experienced

during the project.

Arvind duwa

2

PREFACE

I feel great pleasure in doing my project “Total project Management at the Distributor

and Retailer Level of Hindustan Coca-Cola Beverages Pvt. Ltd.” with Coca-Cola.

Their whole hearted support enabled me to complete this project.

This project is on “Quality initiatives taken by Coca-Cola” in pursuit of TQM Phase- III

certification for the Kaladera Plant in Jaipur.

In the I phase of the project I collected various samples from the Distributors and

Retailers and surveyed the warehouses along various quality parameters with the

help of questionnaires and observation method.

In the second phase I analyzed the data generated in the I phase, generated report

on its basis and presented the same to the quality department officials with the help

of bar graphs, pie-charts and histograms.

Arvind duwa

3

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. Jagan (TRAINER), for guiding

me right from the inception till the successful completion of the project. I sincerely

acknowledge her for extending their valuable guidance, support for literature, critical

reviews of project and the report and above all the moral support she had provided

to me with all stages of this project.

I would also like to thank the supporting my college faculty MR. ANKUR RASTOGI

for her help and cooperation throughout our project.

Arvind duwa

4

EXECUTIVE SUMMARY

Over the last few years, hundreds of companies have greatly improved their

performance &the graph of growth through superior sales promotion services. Today

many companies are building on these foundations and are tuning their products in

Soft drink segment into a formidable competitive weapon. Sales Promotion services

have become a subject of huge interest in recent years.

Sales Promotion Services is growing because:

In the face of ever-increasing competition in organizations feel, it is important

to build reliable & sustainable processes with focus on strong relationships

with customers. Significant revenue & profit gains can be made from

successful Sales

Promotion Activities that improve efficiency & help serve customers better &

faster.

The different distribution channels are as follows:"

1. Eating & Drinking 2.Convenience 3.Grocery

Activation is the key part of Coca-Cola marketing strategy

Company believes that soft drink sell is not a planned sell it's a impulse

buying, and activation create impulse for buying

For improvement of Coca-Cola market, a proper research work has done.

Sales Promotion Strategies are offering new & better ways of addressing

industries objectives.

Coca-Cola has developed a unique sales promotion strategy that offer a

unique way to increase the sales of the soft drink.

5

TABLE OF CONTENTS

1) Introduction to the Industry

2) Introduction to the Organization

3) Research Methodology

i) Title of the Study

ii) Duration of the project

iii) Objective of the study

iv) Types of research

v) Sample size and method

vi) Scope of the study

vii) Limitation

4) Facts & Findings

5) Analysis & Interpretation

6) SWOT Analysis

7) Conclusion

8) Recommendations & Suggestion

9) Appendix

10)Bibliography

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CHAPTER 1

INTRODUCTION OF INDUSTRY

7

INTRODUCTION

SOFT DRINK MARKET IN INDIA

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded

in 1886, the Company is the world's leading manufacturer, marketer, and distributor

of nonalcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. Our corporate headquarters are in Atlanta, with local operations in

over 200 countries around the world. The basic proposition of the business is

simple, solid and timeless. The company aims at bringing refreshment, value, joy

8

and fun to its stakeholders, they successfully nurture and protect brands,

particularly Coca-Cola.

More than a billion times every day, thirsty people around the world reach for Coca-

Cola products for refreshment. They deserve the highest quality—every time. Our

promise to deliver that quality is the most important promise we make. And it

involves a worldwide, yet distinctively local, network of bottling partners, suppliers,

distributors and retailers whose success is paramount to our own. Our investment in

local communities in over 200 countries totals billions of dollars in jobs, facilities, and

marketing, the purchase of local goods and services, and local business

partnerships. Always and everywhere, we pursue continuous innovation in the

products we offer, the processes we use to make them, the packages we develop

and the ways we bring them to market.

The Coca-Cola system is one of the most diverse organizations on earth, with a rich

mosaic of talented colleagues who bring a variety of intellectual, professional, ethnic

and cultural perspectives to our enterprise. They reflect the nations, cultures and

languages of the world. Our policy is to foster an inclusive environment that

encourages all employees to develop and perform to their fullest potential.

Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending

machines of more than 200 countries. It is produced by The Coca-Cola Company of

Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of

The Coca-Cola Company in the United States since March 27, 1944). Originally

intended as a patent medicine when it was invented in the late 19th century by John

Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose

marketing tactics led Coke to its dominance of the world soft-drink market throughout

the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola

bottlers throughout the world. The bottlers, who hold territorially exclusive contracts

with the company, produce finished product in cans and bottles from the concentrate

in combination with filtered water and sweeteners. The bottlers then sell, distribute

and merchandise Coca-Cola to retail stores and vending machines. Such bottlers

include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North

America and western Europe. The Coca-Cola Company also sells concentrate for

soda fountains to major restaurants and food service distributors.

9

The Coca-Cola Company has, on occasion, introduced other cola drinks under the

Coke brand name. The most common of these is Diet Coke, with others including

Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola

Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.

In response to consumer insistence on a more natural product, the company is in the

process of phasing out E211, or sodium benzoate, the controversial additive used in

Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The

company has stated that it plans to remove E211 from its other products, including

Sprite and Oasis, as soon as a satisfactory alternative is found.

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first

distributed in 1888 to help promote the drink. By 1913, the company had redeemed

8.5 million tickets.

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,

Louisiana.

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical

Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a

coca wine called Pemberton's French Wine Coca. He may have been inspired by the

formidable success of Vin Mariani, a European coca wine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton

responded by developing Coca-Cola, essentially a non-alcoholic version of French

Wine Coca.The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8,

1886.It was initially sold as a patent medicine for five cents[10] a glass at soda

fountains, which were popular in the United States at the time due to the belief that

carbonated water was good for the health.[ Pemberton claimed Coca-Cola cured

many diseases, including morphine addiction, dyspepsia, neurasthenia, headache,

10

and impotence. Pemberton ran the first advertisement for the beverage on May 29 of

the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola — sold by three separate businesses — were

on the market. Asa Griggs Candler acquired a stake in Pemberton's company in

1887 and incorporated it as the Coca Cola Company in 1888. The same year, while

suffering from an ongoing addiction to morphine,[14] Pemberton sold the rights a

second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy

and E.H. Bloodworth. Meanwhile, Pemberton's alcoholicson Charley Pemberton

began selling his own version of the product.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the

other two manufacturers could continue to use the formula. So, in the summer of

1888, Candler sold his beverage under the names Yum Yum and Koke. After both

failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late

1888, in order to force his two competitors out of the business. Candler purchased

exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk

Walker. However, in 1914, Dozier came forward to claim her signature on the bill of

sale had been forged, and subsequent analysis has indicated John Pemberton's

signature was most likely a forgery as well.

Old German Coca-Cola bottle opener

In 1892 Candler incorporated a second company, The Coca-Cola Company (the

current corporation), and in 1910 Candler had the earliest records of the company

burned, further obscuring its legal origins. By the time of its 50th anniversary, the

drink had reached the status of a national icon in the USA. In 1935, it was certified

kosher by Rabbi Tobias Geffen, after the company made minor changes in the

sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor

wall advertisement was painted in the same year as well in Cartersville, Georgia.[19]

Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in

Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor

11

was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very

different from the much later hobble-skirt design that is now so familiar. Asa Candler

was tentative about bottling the drink, but two entrepreneurs from Chattanooga,

Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and

were so persuasive that Candler signed a contract giving them control of the

procedure for only one dollar. Candler never collected his dollar, but in 1899

Chattanooga became the site of the first Coca-Cola bottling company. The loosely

termed contract proved to be problematic for the company for decades to come.

Legal matters were not helped by the decision of the bottlers to subcontract to other

companies, effectively becoming parent bottlers.

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small

quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

New Coke

One of Coke's ads to promote the flavor change.

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula

of the drink with "New Coke". Follow-up taste tests revealed that most consumers

preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola

management was unprepared for the public's nostalgia for the old drink, leading to a

backlash. The company gave in to protests and returned to a variation of the old

formula, under the name Coca-Cola Classic on July 10, 1985.

21st century

On February 7, 2005, the Coca-Cola Company announced that in the second quarter

of 2005 they planned to launch a Diet Coke product sweetened with the artificial

sweetener sucralose, the same sweetener currently used in Pepsi One. On March

21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with

a blend of aspartame and acesulfame potassium.[25] In 2007, Coca-Cola began to

sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and

zinc, marketed as "Diet Coke Plus."

12

On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for

the first time since the Arab League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to

"Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer

in production, eliminating the need to differentiate between the two. The formula

remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-

ounce bottles sold in parts of the southeastern United States. The change is part of a

larger strategy to rejuvenate the product's image

In November 2009, due to a dispute over wholesale prices of Coca-Cola products,

Costco stopped restocking its shelves with Coke and Diet Coke.

Use of stimulants in formulaUse of stimulants in formula

When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl

ecgonine) and caffeine. The cocaine was derived from the coca leaf and the caffeine

from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a

"C" for marketing purposes).

Coca — cocaine

Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose;

in 1891, Candler claimed his formula (altered extensively from Pemberton's original)

contained only a tenth of this amount. Coca-Cola did once contain an estimated nine

milligrams of cocaine per glass, but in 1903 it was removedCoca-Cola still contains

coca flavoring.

After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves —

the leftovers of the cocaine-extraction process with cocaine trace levels left over at a

molecular level. To this day, Coca-Cola uses as an ingredient a cocaine-free coca

leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.

In the United States, Stepan Company is the only manufacturing plant authorized by

the Federal Government to import and process the coca plant, which it obtains

mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca

13

flavoring agent for Coca-Cola, Stepan Company extracts cocaine from the coca

leaves, which it sells to Mallinckrodt, a St. Louis, Missouri pharmaceutical

manufacturer that is the only company in the United States licensed to purify cocaine

for medicinal use.

Kola nuts — caffeine

Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for

example, the ingredient label states "Flavourings (Including CaffeineKola nuts

contain about 2 percent to 3.5 percent caffeine, are of bitter flavor and are commonly

used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty

Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove

caffeine from its formula. The case was decided in favor of Coca-Cola.

Subsequently, in 1912 the U.S. Pure Food and Drug Act was amended, adding

caffeine to the list of "habit-forming" and "deleterious" substances which must be

listed on a product's label.

Coca-Cola contains 46 mg of caffeine per 12 fluid ounces, while Caffeine-Free Coca-

Cola and Diet Coke Caffeine-Free contain 0 mg.

ProductionProduction

Coca-Cola 375 mL 24 can pack (AU)

Ingredients

Carbonated water

Sugar (sucrose or high-fructose corn syrup depending on country of origin)

Caffeine

Phosphoric acid v. Caramel (E150d)

Natural flavorings

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A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar,

approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and

140 calories.

Formula of natural flavorings

Main article: Coca-Cola formula

The exact formula of Coca-Cola's natural flavorings (but not its other ingredients

which are listed on the side of the bottle or can) is a trade secret. The original copy

of the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the

Trust Company, was the underwriter for the Coca-Cola Company's initial public

offering in 1919. A popular myth states that only two executives have access to the

formula, with each executive having only half the formulaThe truth is that while Coca-

Cola does have a rule restricting access to only two executives, each knows the

entire formula and others, in addition to the prescribed duo, have known the

formulation process.

On February 11, 2011 Ira Glass revealed on his PRI radio show, This American Life,

that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The

formula found basically matched the formula found in Pemberton's diary.

Franchised production model

The actual production and distribution of Coca-Cola follows a franchising model. The

Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers

throughout the world, who hold Coca-Cola franchises for one or more geographical

areas. The bottlers produce the final drink by mixing the syrup with filtered water and

sweeteners, and then carbonate it before putting it in cans and bottles, which the

bottlers then sell and distribute to retail stores, vending machines, restaurants and

food service distributors.

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling

Company".

Brand portfolioBrand portfolio

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Name Launched Discontinued Notes Picture

Coca-Cola 1886The original version of

Coca-Cola.

Caffeine-Free Coca-Cola 1983The caffeine free

version of Coca-Cola.

New Coke/"Coca-Cola II" 1985 2002 Still available in Yap and American Samoa

Coca-Cola with Lemon 2001 2005

Still available in:

American Samoa, Austria, Belgium, Brazil,

China, Denmark, Federation of Bosnia and

Herzegovina, Finland, France, Germany,

Hong Kong, Iceland, Korea, Luxembourg,

Macau, Malaysia, Mongolia, Netherlands,

Norway, Réunion, Singapore, Spain,

Switzerland, Taiwan, Tunisia, United

Kingdom, United States, and West Bank-

Gaza

Coca-

Cola

Vanilla

2002200

5

Still

available

in:

Austria,

Australia,

China,

Germany,

Hong

Kong, New

Zealand

(600 mL

only)

16

Malaysia,

Sweden

(Imported)

and

Russia.

Was called

"Vanilla

Coca-Cola

(Vanilla

Coke)"

during

initial U.S.

availability.

20

07

It was

reintrodu

ced in

June

2007 by

popular

demand

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Coca-Cola with Lime 2005

Available in Belgium, Netherlands,

Singapore, Canada, the United Kingdom,

and the United States.

Coca-

Cola

Raspberry

June

200

5

End

of

2005

Was

only

available

in New

Zealand.

Coca-Cola Zero 2005

Coca-Cola M5 2005

Only available in Federation of Bosnia and

Herzegovina, Germany, Italy, Spain, Mexico

and Brazil

Coca-

Cola

Black

Cherry

Vanilla

2006Middl

e of

2007

Was

replaced

by

Vanilla

Coke in

18

June

2007

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06

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Coca-Cola

Light Sango2006 Only available in France and Belgium.

Coca-Cola

Orange2007

Only available in the United Kingdom and Gibraltar. In

Germany, Austria and Switzerland it's sold unter the label

Mezzo Mix.

21

Logo design

Detail on Elmira Coca-Cola Bottling Plant, Elmira, NY.

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank

Mason Robinson, in 1885.[50] Robinson came up with the name and chose the logo's

distinctive cursive script. The typeface used, known as Spencerian script, was

developed in the mid 19th century and was the dominant form of formal handwriting

in the United States during that period.

Robinson also played a significant role in early Coca-Cola advertising. His

promotional suggestions to Pemberton included giving away thousands of free drink

coupons and plastering the city of Atlanta with publicity banners and streetcar signs

Contour bottle design

Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle.

The prototype never made it to production since its middle diameter was larger than

its base, making it unstable on conveyor belts.

2 Litre bottle label

The equally famous Coca-Cola bottle, called the "contour bottle" within the company,

but known to some as the "hobble skirt" bottle, was created by bottle designer Earl

R. Dean. In 1915, the Coca-Cola Company launched a competition among its bottle

suppliers to create a new bottle for the beverage that would distinguish it from other

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beverage bottles, "a bottle which a person could recognize even if they felt it in the

dark, and so shaped that, even if broken, a person could tell at a glance what it

was."[52]

Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana,

turned the project over to members of his supervisory staff, including company

auditor T. Clyde Edwards, plant superintendent Alexander Samuelsson, and Earl R.

Dean, bottle designer and supervisor of the bottle molding room. Root and his

subordinates decided to base the bottle's design on one of the soda's two

ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient

looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and

were unable to find any information about coca or kola. Instead, Dean was inspired

by a picture of the gourd-shaped cocoa pod in the Encyclopedia Britannica. Dean

made a rough sketch of the pod and returned back to the plant to show Mr. Root. He

explained to Root how he could transform the shape of the pod into a bottle.

Chapman Root gave Dean his approval.

Faced with the upcoming scheduled maintenance of the mold-making machinery,

over the next 24 hours Dean sketched out a concept drawing which was approved

by Root the next morning. Dean then proceeded to create a bottle mold and

produced a small number of bottles before the glass-molding machinery was turned

off.

Chapman Root approved the prototype bottle and a design patent was issued on the

bottle in November, 1915. The prototype never made it to production since its middle

diameter was larger than its base, making it unstable on conveyor belts. Dean

resolved this issue by decreasing the bottle's middle diameter. During the 1916

bottler's convention, Dean's contour bottle was chosen over other entries and was on

the market the same year. By 1920, the contour bottle became the standard for the

Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the most

recognized packages on the planet..."even in the dark!".

As a reward for his efforts, Dean was offered a choice between a $500 bonus or a

lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the

Owens-Illinois Glass Company bought out the Root Glass Company in the mid-

1930s. Dean went on to work in other Midwestern glass factories.

23

Although endorsed by some[this version of events is not considered authoritative by

many[who consider it implausible. One alternative depiction has Raymond Loewy as

the inventor of the unique design, but, while Loewy did serve as a designer of Coke

cans and bottles in later years, he was in the French Army the year the bottle was

invented and did not emigrate to the United States until 1919. Others have attributed

inspiration for the design not to the cocoa pod, but to a Victorian hooped dress.

In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took

advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to

articulate the doctrine of strict liability for defective products. Traynor's concurring

opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case

in U.S. law today.[56]

In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous

bottle, on a few test markets, including Terre Haute, Indiana. The new can has never

been widely released.

A new slim and tall can began to appear in Australia as of December 20, 2006; it

cost AU$1.95. The cans have a distinct resemblance to energy drink cans. The cans

were commissioned by Domino's Pizza and are available exclusively at their

restaurants.

In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling,

removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this

is merely a name change and the product remains the same. The cans still bear the

"Classic" logo in the United States.

In 2007, Coca-Cola introduced an aluminum can designed to look like the original

glass Coca-Cola bottles.

In 2007, the company's logo on cans and bottles changed. The cans and bottles

retained the red color and familiar typeface, but the design was simplified, leaving

only the logo and a plain white swirl (the "dynamic ribbon").

In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including

the larger 1.5- and 2-liter bottles) was changed to include a new plastic screw cap

and a slightly taller contoured bottle shape, designed to evoke the old glass bottles.

24

Coke Mini

200 mL "stubby" bottle widely available throughout China. These are sold in small

shops for 1 yuan, and must be consumed on site in order to return the bottle.

Coke mini is a 7.5 ounce can packaging of Coca-Cola that debuted in December

2009.[59][60][61] There are plans to also sell smaller cans of Sprite, Fanta Orange,

Cherry Coca-Cola and Barq's Root Beer.

Designer bottles

Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles

for Coca-Cola. Lagerfeld is not the first fashion designer to create a special version

of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by

fashion designers for Coca Cola Light soda have been created in the last few years.

In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of

the recognizable contour bottle. Well known Italian designers Alberta Ferretti,

Blumarine, Etro, Fendi, Marni, Missoni, Moschino, and Versace each designed

limited edition bottles.

Local competitorsLocal competitors

Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets.

Around the world, some local brands compete with Coke. In South and Central

America Kola Real, known as Big Cola in Mexico, is a fast-growing competitor to

Coca-Cola.[64] On the French island of Corsica, Corsica Cola, made by brewers of the

local Pietra beer, is a growing competitor to Coca-Cola. In the French region of

Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led

The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust

outsells Coca-Cola during the Christmas season. In Scotland, the locally produced

Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet

Coke began to outpace its sales. In India, Coca-Cola ranked third behind the leader,

25

Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums

Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in IndiaTropicola, a

domestic drink, is served in Cuba instead of Coca-Cola, due to a United States

embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the

Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major

competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam Cola

and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future

cola is a competitor. In Slovenia, the locally produced Cockta is a major competitor

to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's

biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive

competitor. Classiko Cola, made by Tiko Group, the largest manufacturing company

in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is

the top-selling soft drink on the Portuguese island of Madeira. Coca-Cola has stated

that Pepsi was not its main rival in the UK, but rather Robinsons drinks.

AdvertisingAdvertising

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The

ad is titled Drink Coca-Cola 5¢. (US)

Coca-Cola ghost sign in Fort Dodge, Iowa. Note older Coca-Cola ghosts behind

Borax and telephone ads.

26

Coca-Cola signboard in Lahore, Pakistan.

Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.

Coca-Cola's advertising has significantly affected American culture, and it is

frequently credited with inventing the modern image of Santa Claus as an old man in

a red-and-white suit. Although the company did start using the red-and-white Santa

image in the 1930s, with its winter advertising campaigns illustrated by Haddon

Sundblom, the motif was already common.[69][70] Coca-Cola was not even the first soft

drink company to use the modern image of Santa Claus in its advertising: White

Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first

using him to sell mineral water in 1915.[71][72] Before Santa Claus, Coca-Cola relied on

images of smartly dressed young women to sell its beverages. Coca-Cola's first such

advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark

as its spokeswoman.

1941 saw the first use of the nickname "Coke" as an official trademark for the

product, with a series of advertisements informing consumers that "Coke means

Coca-Cola".[73] In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach

the World to Sing", produced by Billy Davis, became a hit single.

Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that

everyone on Earth drank Coca-Cola as their preferred beverage. This is especially

true in southern areas of the United States, such as Atlanta, where Coke was born.

Some of the memorable Coca-Cola television commercials between 1960 through

1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST

1936–1950, WAGA 1951–1959) during his career as a producer for the McCann

Erickson advertising agency. Many of these early television commercials for Coca-

Cola featured movie stars, sports heroes and popular singers.

During the 1980s, Pepsi-Cola ran a series of television advertisements showing

people participating in taste tests demonstrating that, according to the commercials,

"fifty percent of the participants who said they preferred Coke actually chose the

27

Pepsi." Statisticians were quick to point out the problematic nature of a 50/50 result:

most likely, all the taste tests really showed was that in blind tests, most people

simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to

combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of

Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding

which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the

market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She

filmed three commercials for the company. In 1994, to commemorate her five years

with the company, Coca-Cola issued special Selena coke bottles.[74]

The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting

Coke-product images in many of its films. After a few early successes during Coca-

Cola's ownership, Columbia began to under-perform, and the studio was sold to

Sony in 1989.

Coca-Cola has gone through a number of different advertising slogans in its long

history, including "The pause that refreshes," "I'd like to buy the world a Coke," and

"Coke is it" (see Coca-Cola slogans).

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign

where consumers earn points by entering codes from specially marked packages of

Coca-Cola products into a website. These points can be redeemed for various prizes

or sweepstakes entries

Holiday campaigns

Coca-Cola Christmas truck in Dresden, Germany.

28

The "Holidays are coming!" advertisement features a train of red delivery trucks,

emblazoned with the Coca-Cola name and decorated with Christmas lights, driving

through a snowy landscape and causing everything that they pass to light up and

people to watch as they pass through.

The advertisement fell into disuse in 2001, as the Coca-Cola company restructured

its advertising campaigns so that advertising around the world was produced locally

in each country, rather than centrally in the company's headquarters in Atlanta,

Georgia. However, in 2007, the company brought back the campaign after,

according to the company, many consumers telephoned its information center saying

that they considered it to mark the beginning of Christmas. [76] The advertisement was

created by U.S. advertising agency Doner, and has been part of the company's

global advertising campaign for many years.

Keith Law, a producer and writer of commercials for Belfast CityBeat, was not

convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying that "I

don't think there's anything Christmassy about HGVs and the commercial is too

generic.

In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a

single, Wonderful Dream (Holidays are Coming), which entered the pop-music charts

in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to

radio, employing several variations of the jingle.[82]

Sports sponsorship

Special aluminum bottle designs, designed exclusively for the Vancouver 2010

Olympic Winter Games Torch Relay. Available in Canada.

Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928

games in Amsterdam, and has been an Olympics sponsor ever since.[83] This

corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which

allowed Coca-Cola to spotlight its hometown. Most recently, Coca-Cola has released

localized commercials for the 2010 Olympics in Vancouver; one Canadian

29

commercial referred to Canada's hockey heritage and was modified after Canada

won the gold medal game on February 28, 2010 by changing the ending line of the

commercial to say "Now they know whose game they're playing".[84]

Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other

competitions organized by FIFA. In fact, one FIFA tournament trophy, the FIFA

World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called

"FIFA  — Coca Cola Cup".[85] In addition, Coca-Cola sponsors the annual Coca-Cola

600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor

Speedway in Concord, North Carolina and Daytona International Speedway in

Daytona, Florida. Coca-Cola has a long history of sports marketing relationships,

which over the years have included Major League Baseball, the National Football

League, National Basketball Association and the National Hockey League, as well as

with many teams within those leagues. Coca-Cola is the official soft drink of many

collegiate football teams throughout the nation.

Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on

the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi

Daredevils in Indian Premier League.

In England, Coca-Cola is the main sponsor of The Football League, a name given to

the three professional divisions below the Premier League in football (soccer). It is

also responsible for the renaming of these divisions  — until the advent of Coca-Cola

sponsorship, they were referred to as Divisions One, Two and Three. Since 2004,

the divisions have been known as The Championship (equiv. of Division 1), League

One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused

unrest amongst some fans, who see it as farcical that the third tier of English

Football is now called "League One." In 2005, Coca-Cola launched a competition for

the 72 clubs of the football league  — it was called "Win a Player". This allowed fans

to place 1 vote per day for their beloved club, with 1 entry being chosen at random

earning £250,000 for the club; this was repeated in 2006. The "Win A Player"

competition was very controversial, as at the end of the 2 competitions, Leeds United

AFC had the most votes by more than double, yet they did not win any money to

spend on a new player for the club. In 2007, the competition changed to "Buy a

Player". This competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-

Cola and submit the code on the wrapper on the Coca-Cola website {www.coca-

30

colafootball.co.uk}. This code could then earn anything from 50p to £100,000 for a

club of their choice. This competition was favored over the old "Win A Player"

competition, as it allowed all clubs to win some money.

Introduced March 1, 2010, in Canada, to celebrate the 2010 Olympics, Coca Cola

will sell gold colored cans in packs of 12 355 mL each, in select stores.[86]

In mass media

Coca-Cola has been prominently featured in countless films and television programs.

It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid,

and The Gods Must Be Crazy. It provides a setting for comical corporate

shenanigans in the novel Syrup by Maxx Barry. And in music, in the Beatles' song,

"Come Together", the lyrics said, "He shoot Coca-Cola, he say..."

Health effectsHealth effects

Since studies indicate "soda and sweetened drinks are the main source of calories in

[the] American diet",[87] most nutritionists advise that Coca-Cola and other soft drinks

can be harmful if consumed excessively, particularly to young children whose soft

drink consumption competes with, rather than complements, a balanced diet.

Studies have shown that regular soft drink users have a lower intake of calcium,

magnesium, ascorbic acid, riboflavin, and vitamin A.[88] The drink has also aroused

criticism for its use of caffeine, which can cause physical dependence.[89] A link has

been shown between long-term regular cola intake and osteoporosis in older women

(but not men).[90] This was thought to be due to the presence of phosphoric acid, and

the risk was found to be same for caffeinated and noncaffeinated colas, as well as

the same for diet and sugared colas.

A common criticism of Coke based on its allegedly toxic acidity levels has been

found to be baseless by researchers; lawsuits based on these notions have been

dismissed by several American courts for this reason. Although numerous court

cases have been filed against The Coca-Cola Company since the 1920s, alleging

that the acidity of the drink is dangerous, no evidence corroborating this claim has

been found. Under normal conditions, scientific evidence indicates Coca-Cola's

acidity causes no immediate harm.[91]

31

Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS)

as an ingredient. Originally it was used in combination with more expensive cane-

sugar, but by late 1984 the formulation was sweetened entirely with HFCS. Some

nutritionists caution against consumption of HFCS because it may aggravate obesity

and type-2 diabetes more than cane sugar.[92] Also, a 2009 study found that almost

half of tested samples of commercial HFCS contained mercury, a toxic substance.

In India, there is a major controversy whether there are pesticides and other harmful

chemicals in bottled products, including Coca-Cola. In 2003 the Centre for Science

and Environment (CSE), a non-governmental organization in New Delhi, said

aerated waters produced by soft drinks manufacturers in India, including

multinational giants PepsiCo and Coca-Cola, contained toxins including lindane,

DDT, malathion and chlorpyrifos  — pesticides that can contribute to cancer and a

breakdown of the immune system. CSE found that the Indian produced Pepsi's soft

drink products had 36 times the level of pesticide residues permitted under European

Union regulations; Coca-Cola's soft drink was found to have 30 times the permitted

amount. CSE said it had tested the same products sold in the U.S. and found no

such residues.[94] After the pesticide allegations were made in 2003, Coca-Cola sales

in India declined by 15 percent. In 2004 an Indian parliamentary committee backed

up CSE's findings and a government-appointed committee was tasked with

developing the world's first pesticide standards for soft drinks. The Coca-Cola

Company has responded that its plants filter water to remove potential contaminants

and that its products are tested for pesticides and must meet minimum health

standards before they are distributed.[95] In the Indian state of Kerala sale and

production of Coca-Cola, along with other soft drinks, was initially banned after the

allegations, until the High Court in Kerala overturned ruled that only the federal

government can ban food products. Coca-Cola has also been accused of excessive

water usage in India.[96]

The 2008 Ig Nobel Prize (a parody of the Nobel Prizes) in Chemistry was awarded to

Sheree Umpierre, Joseph Hill, and Deborah Anderson, for discovering that Coca-

Cola is an effective spermicide, and to C.Y. Hong, C.C. Shieh, P. Wu, and B.N.

Chiang for proving it is not.

CriticismCriticism

Main article: Criticism of Coca-Cola

32

Coca-Cola has been criticized for alleged adverse health effects, its aggressive

marketing to children, exploitative labor practices, high levels of pesticides in its

products, building plants in Nazi Germany which employed slave labor,

environmental destruction, monopolistic business practices, and hiring paramilitary

units to murder trade union leaders. In October 2009, in an effort to improve their

image, Coca-Cola partnered with the American Academy of Family Physicians,

providing a $500,000 grant to help promote healthy-lifestyle education; the

partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians

and nutritionists.[100]

Use as political and corporate symbolUse as political and corporate symbol

Coca-Cola advertising in the High Atlas mountains in Morocco.

Coke dispenser flown aboard the Space Shuttle in 1996. (US)

The Coca-Cola drink has a high degree of identification with the United States, being

considered by some an "American Brand" or as an item representing America. The

identification with the spread of American culture has led to the pun "Coca-

Colanization".

The drink is also often a metonym for the Coca-Cola Company.

There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's

early investment in Israel during the Arab League boycott of Israel (its competitor

Pepsi stayed out of Israel).[102] Mecca Cola and Pepsi have been successful

alternatives in the Middle East.

A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus-

2 or FGBA-2) was developed for use on the Space Shuttle as "a test bed to

determine if carbonated beverages can be produced from separately stored carbon

dioxide, water and flavored syrups and determine if the resulting fluids can be made

33

available for consumption without bubble nucleation and resulting foam formation".

The unit flew in 1996 aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet

Coke.[103]

SPEECH BY CHAIRMAN

Our workplace must be a place where everyone's ideas and contributions are

valued. Our employees deserve equal treatment under our policies governing

compensation, advancement, health, safety and other aspects of workplace life. We

34

understand that fairness in the workplace, coupled with the opportunity to develop

individual capabilities, fosters our collective success.

Responsible stewardship of the environment is a top priority for The Coca-Cola

Company. By preserving and enhancing our natural world, we brighten the future for

our planet and for each other. We put this principle into practice through The Coca-

Cola Environmental Management System, known as eKOsystem. We operate our

business as stewards of the environment, with a commitment to continually move our

business toward sustainability: striving to consume fewer natural resources, and to

recover and reuse resources more extensively. Our commitment to protect the

environment extends throughout our organization, involving officers, managers and

employees at all levels. We are accountable for our actions, conducting

assessments of our environmental performance and taking action toward continuous

improvement in all that we do. Society advances on the strength of community:

people sharing their ideas and resources to reach common goals. We seek to

strengthen local communities worldwide through our support for education, through

partnerships with other organizations and through acts of citizenship by the people of

Coca-Cola.

We support education because of its power to expand opportunities for individuals

and increase understanding between cultures. We partner with national and

international organizations to alleviate economic disadvantage and help improve the

quality of life in local communities. Together with our local bottling partners, we

strengthen communities by giving with our hands and our hearts, as partners in the

promise of a better life.

There's never been a better time to be a part of The Coca-Cola Company. Our

people are dedicated to strengthening relationships with stakeholders and

communities. .

The Coca-Cola Company E.neville Isdell leads The Coca-Cola Company into the

new century with a firm commitment to the values and spirit of the world's greatest

brand. He was elected chairman and chief executive officer in February 2000 and is

the 11th person in the history of the Company to hold this title.

35

Under E.neville Isdell leadership, we have positioned The Coca-Cola Company for

growth, guided by our mission to provide branded beverages that refresh people

around the world, anywhere, any time, everyday. By moving key decision-making

closer to local markets, we have spurred innovation, accelerated growth and fostered

deeper connections to consumers. Simply put, we are closer than ever to you.

A talented and highly experienced worldwide management team coordinates our

new, nimble and entrepreneurial network.

Across more than 200 countries ... more than 100 languages ... a multitude of

cultures and geographies, The Coca-Cola Company strives to be a special part of

people's lives. This privilege comes with a responsibility. We have chosen to take a

leadership role, knowing that our differences make us stronger in our business and

in our communities - each and every day.

We embrace our commitment to diversity in all its forms at The Coca-Cola Company

as a core value. Diversity - of race, gender, sexual orientation, ideas, ways of living,

cultures and business practices - provides the creativity and innovation essential to

our economic well-being. Equally important is a highly motivated, healthy and

productive workforce that achieves business success through superior execution and

superb customer satisfaction.

In today's volatile economic environment, this kind of performance requires

unprecedented commitment to the principles of integrity and leadership. We are

intent on keeping that commitment.

Although Coca-Cola® was first created in the United States, it quickly became

popular wherever it went. Our first international bottling plants opened in 1906 in

Canada, Cuba and Panama, soon followed by many more. Today, we produce

nearly 400 brands in over 200 countries. More than 70 percent of our income comes

from outside the U.S., but the real reason we are a truly global company is that our

products meet the varied taste preferences of consumers everywhere.

36

Bottling

One of our great strengths is our ability to conduct business on a worldwide scale

while maintaining a local approach. At the heart of this approach is our bottling

system.

Before any one of our nearly 400 brands is consumed by anybody around the world,

it has to be produced, packaged and distributed. Since we reach six billion

consumers in over 200 countries, our bottling system has to be the best.

Our bottling partners are local companies - some independently owned, some

partially owned by The Coca-Cola Company - 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.

It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance,

boats transport Coca-Cola® and our other brands between the many hundreds of

islands that make up that nation. In the Amazon, where the main road is often the

river itself, water-borne distribution is also common. In some of 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. Coca-Cola® originated as a soda fountain

beverage in 1886 selling for five cents a glass.

Early growth was impressive, but it was only when a strong bottling system

developed that Coca-Cola became the world-famous brand it is today.

1894 … A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage

called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began

bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.

Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler

37

thanked him but took no action. One of his nephews already had urged that Coca-

Cola be bottled, but Candler focused on fountain sales.

1899 … The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a

business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas

and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most

of the United States -- for the sum of one dollar. A third Chattanooga lawyer, John T.

Lupton, soon joined their venture.

1900-1909 … Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights

to local entrepreneurs. Their efforts were boosted by major progress in bottling

technology, which improved efficiency and product quality. By 1909, nearly 400

Coca-Cola bottling plants were operating, most of them family-owned businesses.

Some were open only during hot-weather months when demand was high.

1916 … Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with

imitators. A group representing the Company and bottlers asked glass

manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass

Company of Terre Haute, Indiana won enthusiastic approval.

1920s … Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the

U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit

starting in 1923. A few years later, open-top metal coolers became the forerunners of

automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola

exceeded fountain sales.

1920s and '30s … International expansion

38

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the

Company began a major push to establish bottling operations outside the U.S.

Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and

South Africa. By the time World War II began, Coca-Cola was being bottled in 44

countries

1940s … Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops.

This followed an urgent request for bottling equipment and materials from General

Eisenhower's base in North Africa. Many of these war-time plants were later

converted to civilian use, permanently enlarging the bottling system and accelerating

the growth of the Company's worldwide business.

1950s … Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the

traditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26-

ounce versions. Cans were also introduced, becoming generally available in 1960.

1960s … New brands introduced

Sprite®, Fanta®, Fresca® and TAB® joined brand Coca-Cola in the 1960s. Mr.

Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke®

and Cherry Coke®, followed by POWERaDE® and Fruitopia® in the 1990s.

1970s and '80s … Consolidation to serve customers

As technology led to a global economy, retail customers of The Coca-Cola Company

merged and evolved into international mega-chains. Such customers required a new

approach. In response, many small and medium-size bottlers consolidated to better

serve giant international customers. The Company encouraged and invested in a

number of bottler consolidations to assure that its largest bottling partners would

have capacity to lead the system in working with global retailers.

39

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or

underdeveloped for decades. After the fall of the Berlin Wall, the Company invested

heavily to build plants in Eastern Europe. As the century closed, more than $1.5

billion was committed to new bottling facilities in Africa.

21st Century … Think local, act local

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the Company well today as consumers seek

brands that honor local identity and the distinctiveness of local markets. As was true

a century ago, strong locally based relationships between Coca-Cola bottlers,

customers and communities are the foundation on which the entire business grows.

MARKET STRATEGY OF COCA COLA

Our local marketing strategy enables Coke to listen to all the voices around the world

skiing for beverages that span the entire spectrum of tastes and occasions. What

people want in a beverage is a reflection of which they are, where they live, how they

work and play, and how they relax and recharge. Whether you're a student in the

United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break,

a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after

a run together, we're there for you. We are determined not only to make great drinks,

but also to contribute to communities around the world through our commitments to

education, health, wellness, and diversity. Coke strives to be a good neighbor,

consistently shaping our business decisions to improve the quality of life in the

communities in which we do business. It's a special thing to have billions of friends

around the world, and we never forget it. Now if we talk about India. Coke has its

focus on the youth market in India. Real example of it is that they present their

product by star cricketer and bollywood stars to get the attention of youth. But now a

days coca cola is moving to rural market because it is the real market of India. When

Amir Khan started advertisement of coca cola and the tag line of this adds

“thanda matlab coca cola” was directly targeted rural area. And the

current situation is that they are very much successful in this target.

40

COCA COLA CLOSE TO PEOPLE

The heart and soul of our enterprise have always been our people. Over the past

century, Coca-Cola people have led our success by living and working with a

consistent set of ideals. While the world and our business will continue to change

rapidly, respecting these ideals will continue to be essential to our long-term

success.

Nothing is more important to our success than integrity. This begins with insisting on

absolute quality for every one of our products, and acting with a strong sense of

accountability in everything we do.

Coca-Cola people have always known that building and nurturing our relationships

with other people and the world around us is an essential part of our work. No matter

how big or complex our business becomes, we must always demonstrate complete

respect for each other. As the world becomes more interconnected, yet more firmly

rooted in local pride, recognition of our interdependence with our stakeholders

becomes even more essential.

A large part of our relationship with the world around us is our relationship with the

physical world. While we have always sought to be sensitive to the environment, we

must use our significant resources and capabilities to provide active leadership on

environmental issues, particularly those relevant to our businesses.

As we have expanded over the decades, our company has benefited from the

various cultural insights and perspectives of the societies in which we do business.

Much of our future success will depend on our ability to develop a worldwide team

that is rich in its diversity of thinking, perspectives, backgrounds and culture. Coca-

Cola is the world's most inclusive brand, and Coca-Cola must also be the world's

most inclusive company.

COCA COLA GUIDING PRINCIPLE FOR CITIZENSHIP

41

We will adhere to the highest ethical standards, knowing that the quality of our

products, the integrity of our brands and the dedication of our people build trust and

strengthen relationships.

We will serve the people who enjoy our brands through innovation, superb customer

service, and respect for the unique customs and cultures in the communities where

we do business.

:::: Enrich the workplace::::

We will treat each other with dignity, fairness and respect. We will foster an inclusive

environment that encourages all employees to develop and perform to their fullest

potential, consistent with a commitment to human rights in our workplace.

The Coca-Cola workplace will be a place where everyone's ideas and contributions

are valued, and where responsibility and accountability are encouraged and

rewarded.

:::: Preserve the environment ::::

Our approach to environmental issues is guided by a simple principle: We will

conduct our business in ways that protect, preserve and enhance the environment.

The Coca-Cola eKO System translates this principle into action by establishing a

framework for successfully managing our environmental performance worldwide.

:::: Strengthen the community::::

We will seek to improve the quality of life through locally-relevant initiatives wherever

we do business.

Coca-Cola in India - Products & Quality

42

Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the

Company's international family of brands including Coca-Cola, Diet Coke, Sprite

and Fanta, plus the Schweppes product range.

Our Kinley water brand was launched in 2000 In 2001, our energy drink Shock and

our first powdered concentrate, Sunfill, hit the market Annual per capita consumption

of soft drinks in India is nine 8-ounce servings In early 2003, Coca-Cola India

collected Advertiser of the Year and Campaign of the Year awards for the Thanda

Matlab Coca-Cola all-media campaign

In early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of the

Year awards for the Thanda Matlab Coca-Cola all-media campaign The Coca-Cola

system adheres not only to national laws on food processing and labeling, but also to

our own strict standards for exceptional quality In everything we do, from the

selection of ingredients to the production of our beverages and their delivery to the

marketplace, we use our specialised quality management system, The Coca-Cola

Quality System, to ensure that we are offering consumers only the highest quality

products We monitor our success through our customer and consumer feedback and

our in-trade monitoring programmes, and this information enables us to continuously

improve our already demanding systems.

From source water to soft drink bottle

A t T h e C o c a - C o l a C o m p a n y ,

t h r o u g h o u r g l o b a l l y a c c e p t e d

a n d v a l i d a t e d m a n u f a c t u r i n g

p r o c e s s e s a n d Q u a l i t y

M a n a g e m e n t S y s t e m s , w e

e n s u r e t h a t o u r

m a n u f a c t u r i n g f a c i l i t i e s a r e

e q u i p p e d t o p r o v i d e t h e

c o n s u m e r w i t h t h e h i g h e s t

p o s s i b l e q u a l i t y b e v e r a g e

e a c h t i m e . L e t u s n o w t a k e

y o u t h r o u g h t h e p r o c e s s e s

a n d Q u a l i t y A s s u r a n c e

P r o g r a m m e s f o l l o w e d b y o u r

43

w o r l d - c l a s s m a n u f a c t u r i n g

f a c i l i t i e s i n I n d i a .

Even before the plant is constructed, the site is selected based on the availability of

source water meeting the potability quality standards. At all our carbonated and non-

carbonated soft drink manufacturing locations, the source water is tested for all

requirements of potable drinking water. The analysis is always conducted by

independent third party accredited laboratories. The source water is then properly

protected and re-tested periodically to ensure conformance to potability standards.

The water is then drawn through sealed pipelines into the storage tanks in secured

water treatment areas of the manufacturing plant..

1. The first step in the manufacturing of soft drinks is the disinfection of water

using the globally approved procedure of chlorination. This treatment ensures

the destruction of microorganisms including pathogens and oxidation of heavy

metal ions and organic impurities.

2. The second step is the filtration at the molecular level, which is achieved

either by coagulation/flocculation or reverse osmosis. Contaminants

commonly removed by this process include:

- Dirt, clay and any other suspended matter in the water.

- Microbial matter (including bacteria, yeast, moulds, virus, protozoa).

Heavy metals and compounds which may cause an off-taste

- When coagulation/flocculation is used, colloidal materials and

suspended particles are removed by settling plus enhanced filtration

through multi-media. If needed, alkalinity reduction may also be

achieved by lime softening or ion exchange filters.

3. The third step to stop potential contaminants is water purification using

granular activated carbon filters. The granular activated carbon, with its large

and porous surface area, ensures effective removal of trace levels of organic

44

compounds (including pesticides and herbicides), colour, off-taste and odour-

causing compounds using the principle of absorption.

4. T h e l a s t s t e p i s p o l i s h i n g

f i l t r a t i o n , w h i c h i s

p a s s i n g w a t e r t h r o u g h h i g h

e f f i c i e n c y 5 - m i c r o n f i l t e r s

t o e n s u r e e v e r y d r o p o f

t r e a t e d w a t e r i s f r e e f r o m

a n y a c t i v a t e d c a r b o n f i n e s

a n d i s s a f e f o r u s e i n

5. S i m i l a r t o t h e s t r i n g e n t

n o r m s u s e d f o r w a t e r , w e

b u y h i g h - g r a d e s u g a r f r o m

a u t h o r i z e d s u g a r m i l l s i n

I n d i a a n d t h i s i s t r e a t e d

w i t h a g l o b a l l y a c c l a i m e d

c a r b o n t r e a t m e n t w h i c h

r e m o v e s a n y i m p u r i t i e s a n d

i s t h e n u s e d f o r t h e

p r e p a r a t i o n o f p u r i f i e d

s u g a r s y r u p . T h i s s u g a r

s y r u p i s t h e n b l e n d e d w i t h

t h e s o f t d r i n k c o n c e n t r a t e .

Carbon-dioxide from authorised suppliers meeting international purity standards

is procured, which goes through stringent quality control checks before being

used in the beverage process.

The three ingredients of syrup, treated water and carbon-dioxide are blended as per

The Coca-Cola Company's specifications.

The glass bottles returned from the market are thoroughly cleaned and sanitised with

specially formulated cleaning agents at high temperature that use sophisticated

state-of-the-art Bottle Washers or Bottle Rinsers (in case of PET). These bottles are

then transported to the filler using a fully automated conveyor system after a

thorough visual inspection. The beverage is then filled into glass containers or virgin

45

food grade PET bottles using a high-speed automated filling machine. The entire

filling operation is fully automated and untouched by human hands.

The bottles are finally capped/crowned, date coded and packed into crates/cartons

to make them available to our consumers.

The complete manufacturing process has a well defined and structured Quality

Control and Assurance Programme. All the manufacturing facilities employ qualified,

experienced and trained professionals for manufacturing and testing of our products.

Routine tests carried out by bottling operations and external laboratories:

An employee operates a proportioner, where the syrup, carbon-dioxide and water

are blended.

Analysts examine water samples using a UV spectrophotometer.

All the bottling facilities follow the Good Manufacturing Practices requirements as

applicable to the food industry. All manufacturing equipments fulfills the stringent

requirements of GMP and sanitary design.

The entire quality management system of each plant is documented, managed and

continually improved through a world-wide accepted system of TCCQS (The Coca-

Cola Quality System).

The Company also has a strong internal audit system to monitor compliance to

international and local standards. The manufacturing facilities also get audited by

accredited external audit agencies against quality management standards.This

internal checks and balances system works virtually in every aspect of our business

and gives us the confidence to reassure our promise to consumers every day.

At The Coca-Cola Company, we are committed to delivering high quality products to

our customers and consumers throughout the globe. Each and every time.

  Pr No

46

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44

1

The Power of knowledge

O n e o f I n d i a ' s g r e a t e s t

m a l a d i e s , p o v e r t y , i s b o t h a

c a u s e a n d e f f e c t o f p o o r

e d u c a t i o n a n d w i d e s p r e a d

i l l i t e r a c y . C o c a - C o l a I n d i a

a c t i v e l y s u p p o r t s g o v e r n m e n t

e f f o r t s t o e x t e n d e d u c a t i o n a l

o p p o r t u n i t i e s t o

u n d e r p r i v i l e g e d s e c t i o n s o f

s o c i e t y , f o r m i n g p a r t n e r s h i p s

w i t h l o c a l n o n - g o v e r n m e n t a l

o r g a n i s a t i o n s ( N G O s ) a n d

c o m m u n i t i e s t o a d d r e s s t h e

i s s u e .

This has resulted in a variety of educational initiatives in slums and villages,

including non-formal education, remedial education, vocational training, and IT

training.

Several of India's leading NGOs - including Child Relief and You (CRY), Pratham,

Prayas, Naandi Foundation and Literacy India - help identify areas lacking in primary

educational facilities.

49

NGOs design the projects so they require minimum recurring expenses, and help

ensure community participation. Coca-Cola serves as the overall project facilitator

and provides financial support and continuous supervision, and employees also

volunteer their time and resources.

Communities contribute infrastructure and daily supervision and also form self-help

groups, nominating volunteers to help lead classes.

The various initiatives have included support towards eight Jagriti

(Awakening) Learning Centres (JLCs), which provide educational resources and

opportunities for nearly 2,000 underprivileged primary school children in areas near

Coca-Cola offices and bottling plants.

The Company is also working with community leaders to put on street plays on

themes of community awareness, such as a series in 50 villages in Gurgaon that

reached almost 500,000 villagers.

Cola and the Battle for Safe Water

Water harvesting is the buzzword. Millions of rupees are being sunk to promote

water harvesting. And at the same time, licenses are being issued to private

companies to not only exploit ground water but to go in for 'water mining'. In the past

few years, for instance, the number of golf courses has multiplied in and around the

major metros in India and at the same time more and more bottling plants for soft-

drinks are being set up. The basic objective being very clear: let the average

consumer conserve water for the benefit (and luxury) of the rich and the elite!

In India, as the prestigious fortnightly Down to Earth estimates that the ever-swelling

numbers of urban consumers who are hitting the (soft-drink) bottle and the

increasing ability of the beverage manufacturers to penetrate the rural market have

ensured that sales and revenues head north. According to market sources, the soft-

drink industry was estimated at 6.5 billion bottles in the year 2000 and volumes have

been increasing at 14-15 per cent per annum since then.

"An international soft drink association put the market size of the soft-drink sector in

India at about 1.4 billion litres in 1998. Producing this quantity would require a

staggering 5.6 billion litres of water. Most of this is extracted from groundwater

50

resources. Assuming that the per capita consumption of water is 30 litres per day,

the water consumed annually by the soft-drink industry is enough to meet the water

needs of more then 5 lakh people (say, for the district of Bolangir in Orissa, which is

chronically drought hit) for a year."

In Kerala, marketed by the State tourism as God's own country, an NGO

"Jananeethi" is waging a lone battle against the excessive extraction of groundwater

and the resulting deterioration of water quality caused by Hindustan Coca-Cola

Beverages Pvt Ltd -- a local unit of the multinational soft-drink giant. The resulting

impact on agriculture in the region has been very well documented.

Distribution Network

Mansarovar

Vidhyadharnagar

Shastrinagar

Malviya Nagar

Adarsh Nagar

Tonk road

Ajmer Puliya

Banipark

51

Station road

M D road

Dadi ka Phatak

Jhotwara

DISTRIBUTION PROCESS

The Coca-Cola soft drinks are produced in the Plants at Kaladera. Here products are

supplied to the warehouse. From warehouse; the products are distributed through

direct & indirect routes.

Direct Routes: Means direct supply from producer to supplier.

Indirect Routes: Indirect routes are those in which the products are supplied to the

distributors appointed to the different areas. The distributors then distribute products

52

in their own trucks or tampoos to the retailers. Finally retailers serve the products to

the factory

PRODUCTION PROCESS

INGREDIENT DELIVERY

Ingredients are not the only things delivered to the plant. Other materials such as

bottles, canes, labels & packaging are also delivered. Many plants outside the United

States use refillable bottles for economic reasons, while in the United States they do

not. When bottles & canes are delivered to the plant, they are carefully inspected to

ensure that they meet our exacting standards. One these have passed initial

inspection, they move on to be washes and/or rinsed.

SWEETNER

Supplied by selected producers, a variety of sweeteners plays a central role in

creating in our beverages. Sweetener vary by location & range from sucrose (table

sugar) and high-fructose starch syrup to low calorie products such as aspartame,

which is often use in the USA with diet beverages and acesulfame-K, which is often

soused in European countries with light beverages.

WATER

Since water is key component to all our beverages, its quality is critical. Since public

water quality varies around the world. Each plant further treats the water it uses. This

means that before water is added to any of our bev

erages, it’s rigorously filtered & cleanses. We then continuously sample the water to

ensure it meets our standards.

WASHING & RINSING

53

To ensure quality, each bottle is washed, sanitized & rinsed before being filled. While

this sounds simple, the actual steps can differ per bottling plant. Outside the United

States many plants use refillable glass or plastic bottles. To be ensuring they meet

our cleanliness standards, bottles are first hit with pre-rinse jet which removes any

dirt or debris. They are then soaked in a high temperature deep cleaning solution

that removes any remaining direct and sanitizes them. The bottles then moves to

“hydro wash” where they are washed again with a deep cleaning pressure spray.

Finally, the bottles are rinsed with cooling water jets before being visually and/or

electronically inspected. In the United States, we primarily use new bottles, not

refillable once. This allows the washing & rinsing steps to move much more quickly.

MIXING & BLENDING

H2O:

Mixing & blending begins eighth the simple step of mixing pure water with

refined sugar, which creates simple syrup. While in some countries measuring the

correct amount of sugar is done by batch, in many North America and European

plants measurements are made using continuous blending systems.

SECRET FORMULA

Our secret formula is….still secret! That right, the secret formula remains a mystery

to the millions of people in nearly 200 countries who enjoy our refreshing beverages

every day. Even through cannot tell you the secret, you can be sure that “Life Tastes

Good” with Coca-Cola.

H2O & SYRUP

Uncorroborated beverage. However, the water and syrup must be mixed in right

ratio. This done by the With the syrup nearing its final state, we mix it with pure

water, creating the finished beverage proportioning equipment. It accurately

measures the correct ratio for each and this mixture to the carbonator.

Co2 ADDED

Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverage.

Carbon dioxide not only gives our beverages their effervescent zest, but it also adds

54

to the distinctive and familiar taste everyone has come to expect from our

beverages.

FILLING

Once all the ingredients have been mixed and blended and the bottles have been

cleaned and sanitized, were ready to start filling. This is a surprisingly complex

process requiring precision at each step. To begin with, bottles must be carefully

timed as they move to the filler synchronization is key. Once at the filler, bottles are

either held securely in place by flexible grippers or precisely placed under filling

valves by centering devices. Before the bottles can be filled, the inside of the bottle

must be pressurized. This allows for the force of gravity itself to draw the beverage

into the bottle-a process that ensures the smooth flow of liquid, with little to no

foaming.

CAPPING

Once filled, bottles are then capped. We use different caps for different bottles-glass

bottles are usually topped with a metal crown while plastic bottles are primarily

topped with a plastic screw top. Each can type than moves through different parts of

the

machine, which ensures each cap stay scratch free and is in the right position to be

precisely placed on the bottle. As quality and freshness is key, we use a “no-closure”

detector during the capping process and a “go-no-gauge” or “torque meter” after the

bottle has been capped the no closure detector checks if a screw to or crown has

been placed on a bottle. The process actually stops if the detector doesn’t find a

closure. The “go-no-gauge” checks for the proper crown crimp and the torque meter

check make sure the screw top are good and tight.

LABELLING

Once the bottles have been filled and capped, they move on to be labeled. A special

machine dispenses labels from large rollers cuts them and places them on the bottle.

For special labels such as commemorative bottles for football championship, the

labels are send to the bottling plants from approval, and then used for packaging.

Depending on the occasion, some of these special bottles will go only to specific

55

locations. For examples, a national football championship bottle will be sent only to

the home town or state of the championship team.

CODING

The bottle is now ready to be coded. Each one of our beverages is marked with a

special code that identifies specific information about it. Some codes simply identify

their date the beverage was bottle or caned. Some come in the form of a date stamp

while other codes are much more complex. These codes identify the day, month,

shift and plant in which the beverage was made and use a combination of letters a d

numbers. You cannot see code on your container. It is because some bottlers use

invincible ink that can only we reed with special technology.

INSPECTION

We respect bottles at many points during the process with refillable bottles, it

happens when they are first bottles plant. They are also inspected after they are

washed and are filled; inspectors look for external bottle important and make sure

each bottle has the right amounts the beverage. White for a substitute for a human

inspector we also use bottles inspection machine. When inspecting empty bottles,

the machine shoots a strong light beam and through the bottom of the bottle to light

collector variation in the light mean that bottle must be discarded. Once the bottle is

filled, some plant deft whether the exact among of beverage has been fitted the

bottle. If no these are discarded. Even after fitting samples bottles for analysis in its

lab. to ensure quality is upto standard.

Once our filled beverages have passed final inspection, they are ready to package

for delivery. Generally, packaging can refer to everything from the unique bottle and

can designs, to label designs, to cardboard boxes and containers, to plastic rings.

Because the needs and tastes of our consumers are so diverse, the packaging

varies depending on where the beverages are being sent. In order to make sure the

freshest beverages possible get to you each warehouse must efficiently manage the

thousands of beverages cases produced each day. Beverage organization is key,

though it is the bottle and cane coding that allow for the necessary precision. From

the warehouse, we load beverages on to our distinctive trucks. Night and day, or

trucks are delivering our refreshing beverages to stores, soda fountains and vending

machines near you.

56

PRICING STRATEGIES

All the pricing strategies are set by the coca-cola India. The company announces

all the prices of the product line all the franchise companies are bound to follow the

decisions of the company regarding the product prices. Local company just decides

and schemes, which are to be given to the distributors and schemes, which are to

the distributors. They decide the discount considering their distribution cost and other

incurred costs in delivering the product

57

CHAPTER 2

INTRODUCTION TO THE ORGANIZATION

2. INTRODUCTION TO THE ORGANIZATION

Coca Cola in India-

After a 16 years absence, coca cola returned to India on October 26,1993 with its

launch in Agra. An engagement in March 1993 with the Parle Group gave the

company instant ownership of the nation’s top soft drinks brands, with access to

parley’s 53-plant bottling network, and a base for rapid introduction of the company’s

international brands. This network remains India’s largest soft drink bottling and

58

distribution infrastructure, reaching out too Indian consumers through a universe of

over 8000000 retail outlets spread across the country. As the leading producer and

marketer of soft drinks in India, the company leads the flavored, carbonated soft

drink market . the Coca-cola Company’s products in India include the company’s

international brands- Coca cola, sprite and fanta, as well as India’s leading soft drink

brands, Thumps Up Limca and Maaza- brands acquired from the Parle Group in

1993

Brands in India:-

1. Coca-Cola

2. diet Coke®

3. Sprite®

4. Fanta®

5. Schweppes

6. Thums Up®

7. Limca®

8. Maaza®

9. Citra™

10.Gold Spot®

11.Kinley™ water

12.Sun fill™ concentrate

13.Shock™

14.RIMZIM®

Bottling Information

The Coca-Cola Company received approval from the government in July 1996 to set

up a holding company to invest US$700 million in downstream operating subsidiaries

to engage in the preparation, packaging, sale and distribution of beverages.

In July 1997, the holding company was permitted by the government to

operationalize its bottling subsidiaries.

The bottling subsidiary currently owns and operates twenty-six bottling plants and

sixty distribution centers across India. In addition, it uses 20 contract packers to

59

augment its production capacity and cater to the increasing demand for its wide

portfolio of beverages.

To reach India's 300 million soft-drink consumers, the company distributes its

products in over 700,000 retail outlets, serviced via trucks, converted three-wheelers,

tricycles and pushcarts.

Employment/Economic Impact

The Coca-Cola system in India directly employs over 7,000 workers. For every direct

job in the system, seven indirect jobs are created in the supply chain.

Over the past nine years, The Coca-Cola Company has invested US$827 million in

India, US$805 million of which has been invested in its bottling subsidiary.

Community Involvement

The Coca-Cola Company in India supports eight Jagriti (Awakening) Learning

Centers (JLC), managed by India's well-known organizations, such as CRY,

Pratham, Prayas and Literacy India. The program provides education at the primary

level to underprivileged children, as well as computers and training for teachers.

Over 1,800 students per year have benefit from the program.

Working with state and district governments, our company provides support to

primary health centers in areas where our bottlers are located.

In 2002, in partnership with The St. John's Ambulance Brigade (Associate of Red

Cross), we conducted health camps for those who live in poverty-stricken urban

areas to sensitize the community on pertinent issues such as HIV/AIDS,

communicable diseases, immunization, hygiene and sanitation, and reproductive

and child health. Free health check-ups and medicine were provided, with over

10,000 people benefiting from the campaign.

The company supports a rainwater harvesting project as part of a major government

initiative to combat water scarcity and reduce ground water tables across the

country. We are analyzing options for rainwater harvesting at our major bottling

plants. Along with the Resident Welfare Association of Greater Kailash, our company

installed four rainwater harvesters. The Chief Minister of Delhi unveiled one of the

rainwater harvesting units in a dedication to local residents.

60

Several of our bottling plants provide safe drinking water to local villagers through

the organization of water tankers, bore wells and hand pumps.

The company has funded India's first national polio eradication drive, as well as a

national drought relief program.

Sponsorships

The company sponsors a unique national radio program for women called "The HER

Show" (Health Education and Recreation). The 30-minute weekly program informs

and educates housewives on primary health and education issues.

We sponsored a one-day "Mother & Child Health district Mela" in Ghaziabad.

Several hundred women and children from five villages received free medical check-

ups and consultation.

With a large work force complemented by a vast network of indigenous suppliers ,the

company not only contributes to the development of the soft drink industry ,but to the

development of related industries and the economy as a whole.

Over the past 5 years , coco-cola India has led the Indian Soft drink industry through

a series of innovative industry initiatives . These include upgradation of technical

infrastructure and talent ,enhancement of quality standards , improvement in the

distribution systems and stimulation of local entrepreneurs in the marketplace to the

benefit of the consumers.

HINDUSTAN COCA COLA BEVRAGES PVT. LTD.

Industry: Consumer product / FMCG products HINDUSTAN COCA COLA

BEVRAGES PVT. LTD.

Types of Company: Private Limited Company, Foreign Based Company

Location:

Sales Office: A-164, SECTOR 63, NOIDA (NCR)

Plant: RIICO INDUSTRIAL AREA, KALADERA TEHSIL CHOMU, JAIPUR.

61

FEW WORDS ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares

an experience that millions of others have served. All of those individual experiences

combined have created a worldwide phenomenon – a truly global brand. On the

distribution front, 10-tonne trucks, open-bay three wheelers that can navigate the

narrow alleyways of Indian cities, ensure availability of our brands in every nook and

corner of the country.

HISTORY

Coca-Cola Company, nourishing the global community with the world’s largest

selling soft drink since 1886, returned to India in 1993 after a gap of 16 years giving

a new thumbs-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, our 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

including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up, Limca,

Sprite Maaza and Kinley (packaged drinking water and soda), Minute Maid Nimbu

Fresh.

Bottlers

In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or

produce) syrup concentrate which is then sold to various bottlers throughout

Pharmacist John Smith Pemberton in 1886. The Coca-Cola formula and brand was

bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.

Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400

brands in over 200 countries or territories. The company operates a franchised

distribution system dating back to 1889 where TCCC only produces syrup

62

concentrate which is then sold to various bottlers throughout the world who hold an

exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its

stock is listed on the NYSE and is part of DJIA and S&P 500

All India Division COBO’s are now ISO 14001 certified

All 25 of the Divisions Company-owned bottling plants have gained the international

standard ISO 14001 Environment Management System certificate.

The ISO 14001 certificate is the internationally recognized standard of Environmental

Management.

A company must demonstrate management commitment, the total involvement of all

employees and a compliance with applicable regulatory and internal company

standards.

Strict division compliance with EKO system ensured that the bottling plants were

ready to meet the tough evaluation criteria and standards of the ISO auditors.

RIGHT EXECUTION DAILY (R.E.D.)

R.E.D. is the survey method that company started earlier. For the survey of R.E.D.,

Company had hired the person A.C. Nielson one of the best survey company. This

survey gets done once in a month. R.E.D. is the set of norms divided into outlet wise.

ABOUT THE R.E.D. SURVEY

The survey named as R.E.D. (Right Execution Daily).

The survey has been conducted to check the cooler management, availability

of products & activation of coca-cola in various outlets.

THE SURVEY WAS BASED ON THREE TOPICS

63

Firstly, I have to check the cooler management i.e. the customer, are properly

managed/working or not. And lastly the most important aspect of cooler

management was the brand order.

Secondly, I have to check the availability of the product i.e. whether the

product is available to the customer or not.

Lastly, I have to check the activation, which is a very important because

activation helps to boost the sales. Activation is done through boards i.e. glow

sign. DPS, Flanges and Combo Boards. Mostly combo boards are given to

the E & D outlets. And is very helpful in attracting the customers. Racks with

header are provided to the Grocery outlet, which should be fully charged.

Right Execution Daily (R.E.D.) is the diversification of outlets as Channel, Class. Let

us know what are the Channel and Class respectively.

PRODUCTS AND BRANDS

Diet Coke

It was introduced in 1982 to offer an alternative to dieters worried about the

64

high number of calories present in regular Coca-Cola.

The Coca-Cola Company offers nearly 400 brands in over 200 countries,

besides its namesake Coca-Cola beverage. This includes other varieties of

Coca-Cola such as:

Diet Coke (introduced in 1982), which uses aspartame, a synthetic

phenylalanine-based sweetener in place of sugar

Diet Coke Caffeine-Free

Cherry Coke (1985)

Diet Cherry Coke (1986)

Coke with Lemon (2001)

Diet Coke with Lemon (2001)

Vanilla Coke (2002)

Diet Vanilla Coke (2002)

Coca-Cola C2 (2004)

Coca-Cola Black Cherry Vanilla (2006)

Diet Coca-Cola Black Cherry Vanilla (2006)

Coca-Cola BlāK (2006)

Diet Coke Plus (2007)

Coca-Cola Orange (2007)

Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a

sugar substitute. Introduced in 1963, the product is still sold today, however its sales

have dwindled since the introduction of Diet Cok

Type Cola

Manufacturer The Coca-Cola Company

Country of origin India

Introduced 1977

65

Related products Coca-Cola, Pepsi, Campa Cola

Thums Up is a carbonated soft drink (cola) that is very popular [citation needed] in

India, where its bold, red thumbs up logo are common. It is similar in flavor to other

colas but has a unique taste reminiscent of betel nut. Introduced in 1977 to offset the

expulsion of The Coca-Cola Company and other foreign companies from India,

Thums Up, Limca, and Campa Cola gained nationwide acceptance. The brand was

bought out by Coca-Cola who later re-launched it to fight against Pepsi after

unsuccessful attempts at brand killing.

Background

During late 1970s, the American cola giant Coca-Cola was banned by the Indian

government. Following this, the Parle brothers, Ramesh Chauhan and Prakash

Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship

drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot

(orange flavored). Thums Up was basically a cola drink, but the company never

claimed it as such. The formula was just as closely guarded as the famous Coke

formula. During the same time, the owners of Coca-Cola’s bottling plant, Pure Drinks

Ltd., launched Campa Cola and Campa Orange, both of which had a higher dose of

carbon dioxide.

The Thums Up logo was a logo showing a red thumbs up hand gesture with a

slanted white serif typeface. This would later be modified by Coca-

Cola with blue strokes and a more modern-looking typeface. This was mainly done

to reduce the dominant red color in their signage.

The picture shows the thums up mountain or thums up pahaad (in Hindi)manmade

hills which has a natural top like thums up logo and is a popular sight from trains .Its

famous caption until the early `80s was, “Happy days are here again”, coined by then

famous copywriter Vasant Kumar, whose father was spiritual philosopher U. G.

Krishnamurti. Later it was changed to "Taste the thunder!”.

Market

66

Thums Up enjoyed a near monopoly with a much stronger market share often

overshadowing its other rivals like Campa cola, Double seven and Dukes, but

there were many small regional players had their own market. It even withstood

liquor giant United Breweries Group (makers of Kingfisher Beer) McDowell’s Crush,

which was another Cola drink and one more Double Cola.

It was one of the major advertisers throughout the 80’s. In mid-80’s it had a

brief threat from a newcomer Double Cola which suddenly disappeared within a few

years.

In 1990, when Indian government opened the market to multinationals, Pepsi

was the first to come in. Thums Up went up against the international giant for an

intense onslaught with neither side giving any quarter. With Pepsi roping in major

Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased

its spending in the Cricket sponsorship. Then the capacity went from 250ml to

300ml, aptly named Maha Cola. This nickname gained popularity in smaller towns

where people would ask for "Maha Cola" instead of Thums Up. The consumers were

divided where some felt the Pepsi’s mild taste was rather bland.

In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to

1993. But Coca-Cola’s entry made things even more complicated and the fight

became a three-way battle. That same year, in a move that baffled many, Parle sold

out to Coke for a meager US$ 60 million (considering the market share it had). Some

assumed Parle had lost the appetite for a fight against the two largest cola brands;

others surmised that the international brands seemingly endless cash reserves

psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke has a habit of

killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its

cola in cans which was all the rage in India, with Thums Up introduced alongside,

albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up

brand which at that time still had more than 30% market share.

Re-launch

Despite its strong overall equity, the brand was losing its popularity among the core

cola drinking age group of 12 to 25 year olds, partly due to nil advertising. Coca-Cola

apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more

than Coke if Thums Up was withdrawn from the market. Instead, Coke decided to

use Thums Up to attack Pepsi. The Coca-Cola Company by this time had about

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60.5% share of the Indian soft-drink market but much to its dismay found out that if it

takes out Thums Up, it would remain with only 28.72% of the market (according to a

report by NGO Finance Trade in India), hence again dusted out the Thums Up brand

and re-launched targeting the 30 to 45 year olds.

The brand was re-positioned as a “manly” drink, drawing on its strong taste

qualities. Known to be a strong drink with more power packed into it than other colas,

it was a favorite in Rum based Cocktails and the byword “rum and Thums Up.”

Hence Thums Up kick-started an aggressive campaign directly attacking Pepsi’s

television advertisement, focusing on the strength of the drink hoping that the

depiction of “adult” drink would appeal to young consumers.

“Grow up to Thums Up” was a successful campaign. The brand’s market share and

equity soared northwards. The brand was unshakeable and Coca-Cola’s declaration

that Thums Up was India’s premier cola brand in terms of market share did not

surprise many.

Other campaigns from Thums Up’s build on the “strength” of its cola and build

associations as a macho drink. Ads showing the Thums Up man, riding through the

desert in search of a cantina that sells Thums Up rather than drink another cola, stick

in the minds of many Indians and caught the imagination of youngsters who want to

be seen as men.

Sponsorship and Souvenirs

Thums Up was one of the major sponsors in the Cricket Matches. In early 80’s it

came out with several postcards featuring Sunil Gavaskar and Imran Khan. Parle’s

southern bottler was a major sponsor in the Indian motor sport scene in 80’s; to

several Indian track drivers in Sholavaram races and also to several regional Car

and Bike rallies. Today old Thums Up souvenirs and stickers have become

Limca

Limca is a lemon and lime flavored carbonated soft drink made in India and certain

parts of the U.S. It is less bubbly than its American counterparts like Seven Up and

Sprite, and it has a slight flavor of ginger. In 1992, when the government allowed

Coca-Cola to return, at the same time as it admitted Pepsi for the first time, Coca-

Cola bought Limca, Thums Up, Maaza and other drink brands.

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Like other sodas, Limca is generally sold in glass bottles within India,

Type Lemon-lime soda

Manufacturer The Coca-Cola Company

Country of origin India

Introduced 1977

Limca is a lemon and lime flavored carbonated soft drink made in India and certain

parts of the U.S. It is less bubbly than its American counterparts like

Seven Up and Sprite, and it has a slight flavor of ginger.

In 1992, when the government allowed Coca-Cola to return, at the same time as it

admitted Pepsi for the first time, Coca-Cola bought Limca, Thums Up, Maaza and

other drink brands.

Like other sodas, Limca is generally sold in glass bottles within India, which are

returned to the store or restaurant after the contents have been drunk. The bottles

are sent back to the manufacturer, washed and reused, because they are more

expensive than the soda itself.

Rates and sizes

2.25 ltr. plastic bottles cost Rs.60

1.25 ltr. plastic bottles cost Rs.33

600ml plastic bottles cost Rs. 22

300ml glass bottles cost Rs. 12

200ml glass bottles cost Rs. 8

Limca also publishes the Limca Book of Records, a record book similar to the

Guinness Book of Records. The Limca Book of Records details feats, records and

other unique statistics from an Indian perspective.

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One of Limca's original and very popular taglines was "Limca. It's very very Lime

& Lemoni." In India reigning top Hindi film actress and actors are generally chosen

as models for the product.

Sprite

Type Lemon-lime

Manufacturer The Coca-Cola Company

Country of origin Germany

Introduced 1961

Sprite is a clear soda, lemon-lime flavored, caffeine free soft drink, produced by the

Coca-Cola Company. It was introduced to the United States in 1961. This was

Coke's response to the popularity of 7 Up, which had begun as "Lithiated Lemon" in

1929. It comes in a primarily green and blue can or a green transparent bottle with a

primarily green and blue label.

History

Originating in Germany as Fanta Klare Zitrone ("Clear Lemon Fanta"), Sprite was

introduced to the United States in 1961 to compete against 7-Up. In the 1980s, many

years after Sprite's introduction, Coke pressured its large bottlers that distributed 7

Up to replace the competitor with the Coca-Cola product. In large part due to the

strength of the Coca-Cola system of bottlers, Sprite finally became the market leader

position in the lemon-lime soda category in 1989

Global naming Sprite, as a lemon-lime soda, is referred to by consumers around the

world in a variety of ways. It is called lemonade in Australia and New Zealand. In

Ireland and Canada, Sprite and 7-up are interchangeable and, when asked, a person

may say Sprite or 7-up to mean the same drink. In South Africa, Sprite and

Schweppes Lemonade are almost interchangeable. In some parts of Switzerland,

Sprite (or any other type of lemonade) is also known simply as Citra.

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Fanta

Type Soft drink

Manufacturer The Coca-Cola Company

Country of origin Germany

Introduced 1940

Fanta is a global brand of fruit-flavored soft drink from the Coca-Cola Company.

There are over 115 flavors world-wide; however, most of them are only available in

some countries. The brand was originally introduced in Germany in 1940, and was

purchased by Coca-Cola in 1960. Today it is available in 180 countries.

History

In 1940 Fanta was created by the German chemist Schetelig during World

War II in Germany, by the German Coca-Cola bottling company in Essen. Due to

war time restrictions on shipping between Germany and the United States, the

German bottling plant could not get Coca-Cola syrup. The CEO of the plant, Max

Keith, needed a product to keep the plant in operation and devised a fruit flavored

drink made from available ingredients.

Using apple fiber remaining from cider pressing and whey, a byproduct from

cheese manufacture,

Fanta was created and became quite popular. The original German Fanta had

a yellow color and a different flavor from that of Fanta Orange. The flavor varied

throughout the war, depending on the ingredients used.

The name 'Fanta' was coined during an employee contest to name the new

beverage. Keith told them to let their Fantasy (German for "imagination") run wild.

On hearing that, salesman Joe Knipp spontaneously arrived upon the name Fanta.

After World War II, Fanta was introduced to the United States by Coca-Cola,

and in 1960 they bought the trademark. Fanta Orange is the most popular Fanta

flavor, available in 180 countries. In terms of volume, Brazil is the largest consumer

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of Fanta in the world. Fanta remains more popular in Europe and South America

than in the United States.

Primary competitors to Fanta have included Tango, Orangina, PepsiCo's Slice

and Tropicana Twister.

In some markets, Coca-Cola also has spun off various diet Fanta varieties

including Fanta "Z" and Fanta Zero Orange.

Ingredients

The composition of Fanta, for the same flavor, varies from country to country. For

example, the European Fanta Orange has orange juice (in variable percentages),

whereas the US formulation does not. The Australian version contains 5% fruit juice,

and South American formulations also have orange juice, especially in Brazil, where

it contains 10% of orange juice. These differences mean the taste of Fanta differs

greatly from country to country, more so than regular Coca Cola, and may in part

explain why the drink's popularity varies so much between different countries.

Fanta in other countries

There are over 70 different flavors world-wide. For example, in Romania (and some

other countries), there is "Fanta Shokata" based on the traditional Romanian and

Balkan drink Socata made from elderflower (a wordplay between "soc"- elderberry in

Romanian- and "shock"). In Switzerland and the Netherlands the local fruit,

blackcurrant is used to produce Fanta as well. Some identical flavors have different

names in different markets. The classic orange, for example, was rebranded "Fanta

Funky Orange" in 2003 for the Nordic countries and Belgium, and to 'Fanta Original

Orange' in the Netherlands while other countries retain the older "Fanta Orange"

brand. As of the year 2005, the Fanta brand has been connected with the word

Bambaacha (or Bamboocha), which is often seen in the Fanta commercials. Tab diet

Cola was originally produced by the Fanta division of Coca-cola and was, at one

time, available in a variety of non-cola flavors as well. Later in 2005, Fanta branched

out into new Fanta Zero (diet versions) varieties in Great Britain. In Great Britain, the

new Fanta logo is introduced.

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Maaza

Type Fruit juice

Manufacturer The Coca-Cola Company

Country of origin India

Introduced 1976

Variants Maaza Orange, Maaza Pineapple

Related products Slice, Frooti

Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the

most popular drink being the mango variety so much that over the years, the Maaza

brand has become synonymous with Mango. Initially Coca-Cola had also launched

Maaza in orange and pineapple variants, but these variants were subsequently

dropped. Coca-Cola has recently re-launched these variants again in the Indian

market.

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. Of late, the Indian market is witnessing the entry of a large

number of small manufacturers producing only mango fruit drink.

Maaza has a distinct pulpy taste as compared to Frooti and tastes slightly

sweeter than Slice. Maaza claims to contain mango pulp of the Alphorns variety,

which is known as the "King of Mangoes" in India.

History

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Maaza was launched in 1976 in India. The Union Beverages Factory, based in the

United Arab Emirates, began selling Maaza as a franchisee in the Middle East and

Africa in 1976. By 1995, it had acquired rights to the Maaza brand in these countries

through Maaza International Co LLC Dubai. In India, Maaza was acquired by Coca-

Cola India in 1993 from Parle-Bisleri along with other brands such as Limca, Citra,

Thums Up and Gold Spot. As for North America, Maaza was acquired by House of

Spices in 2005.

KINLEY

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

away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need

of life, the very sustenance of life, a celebration of life itself.

The importance of water can never be understood. Particularly in a nation such as

India where water governs the lives of the millions, be it as part of everyday ritual or

as the monsoon which gives life to the sub-continent.

Kinly water understands the importance and value of this life giving force. Kinley

water thus promises water that is as pure as it is meant to be. Water you can trust to

be truly safe and pure.

Kinley water comes with the assurance of safety from the Coca- Cola Company.

That is why they introduced Kinley with reverse-osmosis along with latest technology

to ensure the purity of their product. That’s why they go through rigorous testing

procedures at each and every location where Kinley is produced. Because they

believe that right to pure, safe drinking water is fundamental. A universal need that

can not be left to chance.

Channels

Grocery – Outlet primarily engaged in retailing of food & various household items. It

includes Grocers (Outlets dealing mainly in grains, provisions, spices, edible oil,

vanaspati etc.) and General Stores (Outlet selling items of day to day requirements &

stocking a variety of branded products)

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E&D types 1 – Outlet selling items of eat which are being consumed primarily

standing in the outlet or being taken away for Future Consumption. Does Not Have

Place To Sit. It includes bakery / sweet shops/ QSR / juice centers / soft drink

shops/ Tea shops etc.

E & D type 2 – Outlet selling items of eats which are being cooked/made within

outlet possibility of consuming those products within the outlet. The Outlet Should

have A Place To Sit. It includes Sit down restaurants / Bars / Dhabas / Cafes etc.

Convenience- includes outlets which are small stores, generally accessible locally.

These are often located alongside busy roads. It includes Chemists / STD Booths /

Pan – Beedi shops, etc.

Class

Bronze- Those outlets, which sells <= 200 carets per year.

Silver- Those outlets, which sells 201 - 499 carets per year.

Gold- Those outlets, which sells 500-799 carets per year.

Diamond- Those outlets, which sells more than 800 carets per year.

Story

Salesperson – hello sir, I am from Coke and I have a proposal that will surely

increase your income. May I present you?

Shopkeeper – yes please present it

Salesperson - Sir if you will start to sell coke then your overall sale will be increased

and it is not tough to sell coke because Coke is the leader in beverage industry and

a very well known brand.

Shopkeeper- yes, but how it can increase my overall sale?

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Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products

have a very good combination with cold drink. If a person wants to purchase any of

these products then it is quite possible that he will purchase Coke and vice versa.

Shopkeeper – But how Coke can increase my profit?

Salesperson – Sir if you are really interested to explore through Coke, you may be

able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2.25

liter. And for start selling Coke you need to invest only Rs. 2000. We will provide you

3 empty carets

We

igh

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Pr

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uc

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Rs

.)

QT

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Re

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Rs

.)

Pr

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20

0

16

8

24 8 19

2

24

300 240 24 12 288 48

600 492 24 22 528 36

2250 500 9 60 540 40

Sir your daily profit from coke (in Peak season) = Rs. 148

Profit per month (in Peak season) = Rs. 4440

Profit of whole season = Rs. 26640

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(Because the peak season for Coke is only of 6 months)

Profit of rest of the 6 months = Rs. 13320

(Because as per the Coke assumption income in the off season is decreased

by half in comparison to the Peak season)

Profit of whole year = Rs.39960

Your investment = Rs. 2000

Your ROI = 39960 * 100/2000*360

= 66.6%

Shopkeeper – But I do not think this much will work what about those stuffs that

needs to support trading of Coke and I have to provide them like electricity, ice etc.

Salesperson – Sir that’s a really nice question, we can understand your anxiety and

we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300

ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator

for the storage purpose of Coke if will be all right as the refrigerator can work by

consuming power as low as 2 units per day which will cost you Rs. 8 per day.

So, what you have to say about our offer?

Shopkeeper – Yes, I think it will be a nice idea to accept your offer.

Salesperson – Thank you sir and Congratulation (Shaking Hands) I will be

dropping my products within 10 minutes as I have the carrying vehicle with me and

within next 15 minutes you are all set to go for selling Coke.

Benefits of horizontal expansion:

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 Improve Route Productivity

There are pre determined routes through which product is transported and

delivered at the coke outlets. If we open more outlets on the routes it will

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increase the productivity because more outlets will be covered and more

products will be delivered with a negligible increase in time and efforts. Hence

it will improve productivity of the route

Improves Profitability of Our Distributors Expenses on routes and delivery of

product are incurred by the distributors. Opening new outlets will give more

revenue to our distributors also. With the increase in route productivity will

improve profitability of the distributors.

Reduced Dependence on Large Customers, We know that coke products

have a very good demand. To comply with this we have to provide large

amount of supply. In case we have few outlets a large amount of stock is

gathered at few retailers. In this case they become monopolistic and demand

many things like coolers refrigerators discounts margins etc. from the

company. So it is very necessary to reduce dependence on large retailers by

opening new outlets.

Increase market visibility selling at more outlets give more market visibility of

the product which gives higher product recognition and brand value to the

products.

Economies of scale

Economies of scope

Increase in market power over supplier and downstream market channels

Advantage of horizontal expansion over vertical expansion:

Both expansion techniques are meant for increasing sales volumes. But in horizontal

expansion company can earn more profits by spending less. Let’s see the profit story

of horizontal expansion

Above tables clearly indicate the importance of opening new outlets. By doing

vertical expansion only growth in profit was not very effective but because of opening

just 200 new outlets sales increased to a large extent. Total profit margin and return

on investment also increased.

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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 Jaipur

and our outcome is as follows:-

No. of New outlets in Mansarovar = 12

No. of New outlets in Vidhyadharnagar = 10

No. of New outlets in other areas = 15

TERMS AND TERMINOLOGY

1.) DOD- DESPATCH OUT DATE- The date at which the product must leave the

factory warehouse and reach retail outlet. If any product is going to attain its

DOD in a week’s time then it must be communicated to the manger of the

warehouse & the stock should be cleared as soon as possible.

2.) Focus Stock- The stock whose DOD is less than 15 days away.

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3.) BBD- Best Before Date- The date before which the product is fit for

consumption. BBD stock can’t be sold in market.

4.) Clearance Stock- The stock which is between the Focus & BBD stage.

5.) Quality Distributor Audit- Company’s quality auditor pays regular visits to

the warehouses of the distributor and the retailer to check whether all the

quality parameters are met or not.

6.) RGB- Refill Glass Bottle. These bottle are made up of glass.

7.) PET- These bottle are made of plastic.

TOTAL PRODUCT MANAGEMENT AT DIFFERENT LEVEL

Production:-

Management should be efficient enough in order to minimize the wastage and

to increase and optimize the productivity.

Proper training should be given to the worker.

Proper material holding from the raw material to the finished goods.

Production is done in such a way that the product is made should have

proper label, date of manufacturing and it should be hygiene and the

packaging should be proper.

Warehouse:-

In warehouse the goods are kept properly. It should be kept clean in shade

not in open and direct sunlight should not fall on stock specially on Limca and Fanta

because it change the colour and taste. Proper board should be made for every lot of

stock.

The board contain the following:-

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1) Lot number

2) Date of manufacturing

3) Date of Dispatch (DOD)

4) Best before date (BBD)

5) Quantity of goods

Distribution:-

Note arrival time of truck and departure time from plant

Check conformity of brand/pack against indent

Note date code & segregate date wise and tag

Select cool – ventilated area of low temperature

Move older lot for first out dispatch

Improve storage condition – godown/layout

Check stock against target& trend

Decide order – dispatch schedule by brand/pack

Ensure fifo practice by agent

Create awarness of TPM specifically PET- maaza- sprite

Rationalise route and brand time table (small vehicle)

Do not kill or over order stocks

Personality supervise date code – check – all products

BBD lapse is a direct revenue hit

Report high risk stock – take suitable action

Demonstrate – educate – enforce FIFO at pos along with the daily route

activity

Be polite but firm about agent’s and retailer’s negligence . Don’t let

replacement be taken for granted

ROLL OUT PLAN

Make deadlines

Dispatch schedule of distributors – firm numbers

Direct route sale plan

Calculate stock level against plan

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Work reorder plan for brand pack or action of cxcess stock well in advance

FIFO method should be follow while placing the stock so it is easy for shipping

department at the time of dispatch, so the old stock is not remain in warehouse and

become BBD stock. FIFO method is strictly followed in shipping department. The

stock is reach to the distributor point with in dispatch out date (DOD) is half of best

before date (BBD). DOD is very important. It is the maximum time allowed for

reaching the goods from production to distributor.

Proper receiving of goods from company and maintain the record of each stock.

The following step is maintained:-

1) Record for stock received.

2) Stock is placed in such a way that FIFO method is follow.

3) Ageing analysis board should be maintained regularly.

4) Proper ventilation and lighting should be there.

5) Should be free from insects and pests.

6) Place Dry and proper temperature should be maintained.

7) Proper management of product delivery to retailer.

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We do the retailer’s survey in which we see the manufacturing date of each brand

present at retailer’s shop. From this we conclude that this product is BBD or not,

if it is BBD then, it means that the sale of this flavor is not very good and this

flavor is not liked by the consumer. If the product is fresh not BBD then the sale

of product is good because in this business the flavor is most important element.

In this survey we inform the distributor to replace the BBD product. This process

helps management to decide which flavor is more popular & which is less

popular.

We also conclude that Thumsup and Limca (RGB) flavor are more wanted or sale

at juice center. 2L PET is more at provision store and department store. In rural

area RGB’s Selling is more because it cost Rs. 35 and give 2L in comparision to

300 ml and 500 ml and the quantity is also sufficient for family members. In this

summer sale of 2L PET of Thumsup and Limca is more because in comparison

of 300 ml and 500 ml, 2L cost less.

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CHAPTER 3

RESEARCH METHODOLOGY

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3. RESEARCH METHODOLOGY

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.

3.1. Title of the Study: - “HORIZONTAL EXPANSION OF COCA COLA”.

3.2. Duration of the Project: - I have been assigned this project as 15 days

training.

3.3 .Objective of Research

Primary Objective:

1. To understand & explain the Horizontal Expansion Concept with respect to

HCCB operations at retail end.

2. To enlist the benefits of Horizontal Expansion for the company at retail end.

3. To enlist the roles and responsibilities for Horizontal Expansion at retail end.

Secondary Objectives:

1. To identify if there exists any training requirement for the improvement of

sales to its sales team?

2. To understand how to make The Horizontal Expansion Process more effective

3. To study the distribution system of the company.

4. To study the behavior of sales man and distributor towards shopkeeper.

To develop the business, expand the market coverage, acquisition of retailers,

retention strategies and maintaining customer relations

3.4.Types of Research

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

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Primary research, in contrast, is research that you design and conduct

yourself.  For example, you may need to find out whether consumers

would prefer that your soft drinks be sweater or tarter.

Secondary research involves using information that others have already

put together.  For example, if you are thinking about starting a business

making drinks for people, you don’t need to question people about what

type of drink they prefer for major and minor likes.—that information has

already been published by the Indian Government.  

Research will often help us reduce risks associated with a new product,

but it cannot take the risk away entirely.   It is also important to ascertain

whether the research has been complete.   For example, Coca Cola did a

great deal of research prior to releasing the New Coke, and consumers

seemed to prefer the taste.  However, consumers were not prepared to

have this drink replace traditional Coke.

3.5. Sample size and Data collection Method

Sampling units are outlets owners/ shopkeepers selling soft drinks.

Method of data collection:

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.

Universe:

Jaipur

Thus questionnaires and discussions were the two main tools/instruments used.

Sample Size:

Sample Size of 50 outlets.

Sample Technique:

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Sample Technique is Simple Random Technique.

3.6. Scope of study

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 it’s sale

from Coke monopoly outlets, means Coke’s monopoly outlets are being taken over

by Pepsi now in this condition to improve it’s 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.

Reason Of Horizontal Expansion?

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The ultimate objective of coke is to acquire more customers 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

How to Do Horizontal Expansion

To do Horizontal Expansion more efficiently we made a profit story and talk to the

shopkeepers according to that story.

From April to October 2009 we shared early drafts of this report with over 50 senior

representatives from NGOs, academia, government, professional bodies and retail

customers at four stakeholder workshops, facilitated by the Oxford Health Alliance.

These stakeholders provided a series of recommendations both for our reporting in

this, our first report, and for our future reporting and strategy. We responded to many

of their recommendations for this report, including:

Greater focus on short-term action as well as medium - long-term

transformation

Clear future vision - what kind of company we want to be, what kind of

products we want to sell

Greater specificity and clarity on pledges - clearer timelines, scope and

nutritional definitions - so we can be held to account

Pledges covering what we can influence, as well as what we can control - for

example widening the retail availability of our healthier product.

3.7.Limitations of study

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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.

4. Behavior of many retailers was not co-operative.

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CHAPTER 4

FACTS AND FINDINGS

4. FACTS AND FINDINGS

90

1. It is felt that outlet owner are more concern about schemes like offers on

cases, under crown schemes etc and Pepsi is providing them better schemes

then Coke.

2. It is felt that distributor is not doing his work honestly, he is not sending route

in the market properly. When the salespersons generate orders with retailer,

due to problem like salesman is on leave, vehicle is not available etc they

delay the order and retailer cancel the order with the distributors that affects

the sales volume.

3. Distributors are more concern about Wholesaler rather than Retailer.

4. As per policy, both companies are not entitled to collect competitor empty

bottles from the shops but Pepsi is not adhering to it. Therefore this

hampering the business of coca-cola in the market as Pepsi is more

preferable to carry on the business in a suave manner.

5. The distributor in its area is facilitating sales by establishing monopoly of

offers and schemes that do not reach to the outlet.

6. Due to infiltration from Moon Beverages (FOBO) in Jaipur from Delhi,

difference in the rates for the shopkeepers has been perceived as a major

problem in the market. The disparity is being created due to COBO and

FOBO.

7. Distributor rarely keeps any interest to work and communicate with the

customer who results in of the company’s sales as well as image are getting

adversely affected.

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CHAPTER 5

ANALYSIS AND INTREPRETATION

92

5. ANALYSIS AND INTREPRETATION

(1) What Type of Channel do you hold?

a) E & D

b) Grocery

c) Convenience

d) Other

E & D 20

Groc

ery

1

0

Convenience 20

Other, Please specify 0

(2) What Type of outlet are you in?

a) Pepsi Exclusive

b) Coke Exclusive

c) Never sell cold drinks

d) Both a & b

Pepsi Exclusive 10

Coke

Exclusi

ve

1

0

93

Never sell cold drinks 10

Both a & b 20

(3) What is the chilling equipment you are using?

a) Coca cola Fridge

b) Pepsi Fridge

c) Own your Assert Fridge

d) Ice Box

e) Both (A & B).

Coca cola Fridge 10

Pep

si

Frid

ge

1

0

Own your Assert Fridge 5

Ice Box 7

Both (A & B). 18

(4) Kindly rate the level of satisfaction on Communication from the company

94

a) Highly satisfied

b) Quite satisfied

c) Neither satisfied nor dissatisfied

d) Quite dissatisfied

Highly satisfied 6

Quite

satisfi

ed

1

9

Neither satisfied nor dissatisfied 8

Quite dissatisfied 13

Highly dissatisfied 4

(5) If a brand which you prefer is not delivered to you properly, then what do

you do?

a) Go for other brand

b) Call to distributor

c) Call to company’s sales person

d) Stop selling that brand

e) Other actions

Go

for

oth

er

bra

nd

32

Call to distributor 0

Call to company’s sales person 13

95

Stop selling that brand 5

Othe

r

actio

ns

0

96

(6) Which of the following promotions affect the sale mostly?

a) Scheme

b) Case refund

c) Price pack

d) Under Crown Scheme

e) Any Other

Sc

he

me

21

Case refund 7

Price pack 4

Under Crown Scheme 18

An

y

Ot

her

0

97

(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any

affect of it on sales?

a) No

b) Yes

c) Can’t Say

No 12

Yes 28

Ca

n’t

Sa

y

1

0

(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak

season, like Summer)?

a) Increase

b) Decrease

c) No effect

d) Can’t say

Increase 7

Decrease 6

98

No effect 22

Ca

n’t

sa

y

1

5

CHAPTER 6

99

SWOT ANALYSIS

6. SWOT ANALYSIS

Strength

Stronger brands in Cold drinks

Defining taste

Dominant market shares

First mover advantage

Established distribution network.

Aggressive market development

Weaknesses

Bakeries and hotels do not appreciate the policy of price difference

between wholesalers and distributors.

It doesn’t have tie ups with big hotel chains { like Oberoi and Taj }

The company does not distribute samples to potential users.

Service provided by the distributor is not up to the mark.

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Visi coolers provided by the company are not adequate in number.

Opportunities

Impulse snacking is an Indian habit.

Attitude and disposable income changes are favourable to impulse drink.

Large youth population, 47% of urban India is growing dominant cold drink

consuming segment.

Child and gifting segments expected to grow at faster rate.

Great opportunity lies in the untapped new channels (school, colleges ,

clubs, hotels etc.

Threats

Aggressive marketing by competitors in hotels.

Foreign drinks have entered the market, and are eating up the market

share of coca cola.

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CHAPTER 7

CONCLUSION

CONCLUSION

Coca - Cola beverage pvt. ltd. is world’s largest beverage company and as we know

that the coca-cola company is on that stage because of its large number of products

and by giving the customer complete satisfaction regarding taste and quality.

Now a day it’s necessary to show customer and to make believe them that our

product is better than others in the aspects which can be done in a better way

through merchandising the products.

As far as journey with the company, I grasped lots of knowledge within two months.

Because many of the company officials has assisted and given me the valuable

notes and experience of their life.

The primary objective of the my research is to analyze the horizontal expansion

strategy of Coke and at the end of the research I found that there is requirement of

changing the strategy for acquiring new customer for Coke but company should take

care of its existing customer because they are the main instrument of promotion for

any company so old customer should be fully satisfied with the company.

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CHAPTER 8

SUGGESTION AND RECOMMENDATION

8. SUGGESTION AND RECOMMENDATION

1. It is suggested that the company should embark upon improved marketing

strategies with special importance to the following

a. Sales person should be provided with all the facilities that will help them in

reaching shops that are generally inaccessible due to factors like distance,

time etc. For this purpose, the company should enable its marketing wings

in such a way that they can facilitate communication and accessibility to

penetrate into markets devoid of sales person services. A suggestion can

be forwarded to the company if they can afford to supply carrying vehicles

(delivery vans) to the sales persons in order to extend markets.

2. Another problem that must be taken care of is rival’s competitive edge over

company’s performance. Pepsi is going brilliantly with its strategy of bottle

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collection in an unbiased way. This is actually getting detrimental to the

company’s hold of overall market share of the area. So Coke is also

suggested to stop Pepsi for collecting Coke’s bottles.

3. A major problem has been detected in the area surveyed. This problem can

be ranked in the first order as it is related to the distribution channel itself the

problem lies with the distributor who, in executing a strange dictate, has

established a monopoly in its business and not letting several critical factors

to be considered. These include pricing policy as a primary factor where the

distributor is setting the price on its own will and taking care of its own

business profitability. If Coke does not pay attention towards the matter, not

only it will affect its market populism in an ill way, also will it pave the way for

Pepsi to capture its lost market.

4. It is necessary for the company to resist FOBO of its vandalism of market

infiltration to save the image of the company in Jaipur and to maintain

controlled rates as well. For this purpose, two things need to be considered;

awareness in the market about distinction between COBO and FOBO and to

set an easily understandable demarcation to recognize the distinction. It is

suggested to the company to introduce code system which can exclusively

identify both COBO and FOBO. With it, shopkeepers should get the

acknowledgement from the company’s side about checking the products

before keeping them to their stores.

5. A strange feedback from the market has, however, paused comprehension

about Coke’s market. The survey has shown that the practice of delay for

supplying products in the market can create a compelling situation for the

shopkeepers to change or switch over from COKE. It is humbly recommended

that, in order to win over problems in the prospective market of Jaipur, Coke

should always step forward to verify and maintain its supply chain system in

striking a balance between ‘what is produce’ and ‘how much is sold’.

6. The final round of question, however, revealed that schemes and offers will

always trigger shopkeeper’s enthusiasm in selling the product. Coke should

find out a cost effective solution so that it could extend favor to the

shopkeepers in keeping beverages from the company along with competitor’s

products.

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CHAPTER 9

APPENDIX (1) What Type of Channel do you hold?

e) E & D

f) Grocery

g) Convenience

h) Other, Please specify

___________________________________________________

(2) What Type of outlet are you in?

e) Pepsi Exclusive

f) Coke Exclusive

g) Never sell cold drinks

h) Both a & b

(3) What is the chilling equipment you are using?

f) Coca cola Fridge

105

g) Pepsi Fridge

h) Own your Assert Fridge

i) Ice Box

(4) Kindly rate the level of satisfaction on Communication from the company

f) Highly satisfied

g) Quite satisfied

h) Neither satisfied nor dissatisfied

i) Quite dissatisfied

(5) If a brand which you prefer is not delivered to you properly, then what do

you do?

f) Go for other brand

g) Call to distributor

h) Call to company’s sales person

i) Stop selling that brand

j) Other actions, please specify __________________________________________.

(6) Which of the following promotions affect the sale mostly?

f) Scheme

g) Case refund

h) Price pack

i) Any Other, Please Specify

________________________________________________.

106

(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any

affect of it on sales?

d) No

e) Yes

f) Can’t Say

(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak

season, like summer)?

e) Increase

f) Decrease

g) No effect

h) Can’t say

(9) I. Kindly rate the behavior of sales man (Overall year) towards:

A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied

D) Dissatisfied E) Highly dissatisfied

10) Delivery (timeliness)

_____________________________________________________

a) Once in a week

b) Twice in a week

c) more than twice in a week

d) Once in a Month

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11). Kindly rate the behavior of sales man (Peak season) towards:

A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied

D) Dissatisfied E) Highly dissatisfied

(12) Kindly rate the behavior of distributer (Overall year) towards:

A) Satisfied C) Neither satisfied nor dissatisfied

B) Dissatisfied D) Don’t Know Distribute

BIBLIOGRAPHY

108

10. Bibliography

Reference:

www.coca-cola.com

www.coca-colaindia.com

Books:

Market Research (Naresh K. Malhotra)

109

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