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AN INTERNSHIP REPORT


MARKET STUDY ON 300ML SKU OF
COCA-COLA












Submitted By:
PARITOSH SACHDEVA
M090700054





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Acknowledgement

I would like to express my gratitude to the management of KANDHARI
BEVERAGES Pvt. Ltd. (Coca-Cola), Chandigarh for giving me the opportunity to
undertake my summer internship program in the company which gave me an insight
into the working of the company and the FMCG and BEVERAGES sector as a
whole.
I owe my sincere thanks and heartfelt gratitude to Mr. Gurdeep Saggu (DGM),
Mr. Amit (A.S.M), and Ms. Preeti who gave time to share their thoughtful criticism
and suggestions to improve the work. Their contribution gave me valuable insights
into this project and immense knowledge of the area.
I am thankful to Mr. S.R TANEJA (DEAN-MBA, CHITKARA UNIVERSITY) for his
help and guidance at every stage to help me complete this dissertation on time
..
Last but not the least, I would also like to thank my institute Chitkara Business
School, Chitkara University for inculcating in me the management knowledge and
skills and then providing me with the best opportunity to apply and update my
knowledge and skills through summer internship in such an esteemed organization



Paritosh Sachdeva







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Table of Contents

Executive Summary

SECTION - A
Chapter 1: Introduction
Chapter 2: Beverage industry
Chapter 3: Brands of Coca-Cola
Chapter 4: BCG Matrix, Porters five forces
Chapter 5: Competitor and Financial analysis

SECTION - B
Chapter 6: Methodology
Chapter 7: Research, Key Findings and Analysis
Chapter 8: Conclusion and Recommendation
References & Bibliography
Annexure












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EXECUTIVE SUMMARY


The scope of the project is to study the 300ml Sku of Coca-Cola in Chandigarh.
From the last three months or so our group is in the process of a continuous
research on marketing functions and strategies adopted by Coca Cola. These
marketing functions mainly include the marketing mix i-e, Product Strategy and
OPPORTUNITY MAPPING as well as other market strategies.

By looking into this study, the company will be able to take corrective measures to
avoid the loopholes provided by the company in earlier period as a result the market
share of the company will increase.

Moreover the project also discusses the analysis of competition, market growth and
trend, opportunity analysis and strategies for creating competitive advantage
adopted by Coca Cola.

We will like to add that the project will provide the readers and listeners very high
profile information about the marketing strategies as a whole and also about the
Coca Cola Company. Therefore the company is the market leader among all
beverages in 21
st
century.

In the end we hope that the project will result very profitable for the readers and
Coca Cola. Your feedback in the end either critical or substantial will be very highly
appreciated




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INTRODUCTION

The Coca-Cola Company exists to benefit and refresh everyone it touches.
Coca-Cola, the product that has given the world its best- known taste was born in
Atlanta, Georgia on May 8, 1886. Coca-Cola Company is the worlds leading
manufacturer, Marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage
brands. The corporate headquarters are in
Atlanta, with local operations in over 200
countries around the world. The Coca-Cola
Company began building its global network in
the 1920s.Coca-Cola system has successfully
applied a formula on a global scale Provide a
moment of refreshment for small amount of
money a billion times a day.

When launched Coca-Cola two key ingredients
were cocaine (benzoyl methyl 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-Cola often referred to
simply as Coke (a registered trademark of The Coca-Cola Company in the United
States since March 27, 1944)was invented in May 1886 by Dr. John Stith Pemberton
in Atlanta, Georgia. The name "Coca-Cola" was suggested by Dr. Pemberton's
bookkeeper, Frank Robinson. He penned the name Coca-Cola in the flowing script
that is famous today.

Coca-Cola was first sold at a soda fountain in Jacob's
Pharmacy in Atlanta by Willis Venable. 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 a glass at soda
fountains, which were popular in the United States at the time
Type Public(NYSE:KO)
Industry Beverage
Founded 1886, USA
Headquarters Atlanta, Georgia , USA
Area served Worldwide
Key People Muhtar Kent
(Chairman and CEO)
Products Coca Cola
Carbonated Soft Drinks
Water
Other non alcoholic beverages
Employees 92,400 (October 2009)
Website KO.com

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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, and impotence.
Pemberton ran the first advertisement for the beverage on May 29 of the same year
in the Atlanta Journal. The company was formed to sell three main products:
Pemberton's French Wine Cola (later known as Coca-Cola), Pemberton's Indian
Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.
[
The Coca-Cola
formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-
Cola Company in 1892.

In 1892 Candler incorporated a second
company, The Coca-Cola Company (the
current corporation), 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. CAN of Coke first
appeared in 1955. 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. 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 India, Coca-Cola ranked third behind the leader, 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 India.

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. Special aluminum bottle
designed exclusively for the Vancouver 2010 Olympic Winter
Games Torch Relay.

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This corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta,
which allowed Coca-Cola to spotlight its hometown.
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".

In 2010 it was announced that Coca-Cola had become the first brand to top 1 billion
in annual UK grocery sales
Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid v. Caramel (E150d)
Natural flavorings
A Can of Coke (12 fl ounces/355ml) has 39 grams of
carbohydrates (all from sugar, approximately 10
teaspoons), 50 mg of sodium, 0 grams fat, 0 grams
potassium,140calorie.
Formula of natural flavorings
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 formula. The 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.

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Logo
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank
Mason Robinson, in 1885. 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.


The Worlds Most Powerful Brand
Interbrands Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the
World, estimated its brand value at $70.45 billion .The rankings methodology
determined a brands valuation on the basis of how much it was likely to earn in the
future, distilling the percentage of revenues that could be credited to the brand, and
assessing the brands strength to determine the risk of future earnings forecasts.
Considerations included market leadership, stability, and global reach, incorporating
its ability to cross both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and the creation of
a distinct personality. Its catchy, well-liked slogans (Its the real thing (1942, 1969),
Things go better with Coke (1963), Coke is it (1982), Cant beat the Feeling
(1987), and a 1992 return to Cant beat the real thing) linked that personality to the
core values of each generation and established Coke as the authentic, relevant, and
trusted refreshment of choice across the decades and around the globe.



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MANIFESTO FOR GROWTH
MISSION:-
To Refresh the world..In body, mind and spirit.
To Inspire Moments of Optimism.Through our brands and our actions.
To Create Value and Make a Difference.Everywhere we engage.

VISION:-
To achieve sustainable growth, we have established a vision with clear goals.
Profit

People

Portfolio

Partners
Planet
Maximizing return to shareowners while being mindful of our overall
responsibilities.
Being a great place to work where people are inspired to be the best they
can be.
Bringing to the world portfolios of beverage brands that anticipate satisfy
peoples; desires and needs.
Nurturing a winning network of partners and building mutual loyalty.
Being a responsible global citizen that makes a difference


VALUES:-
Our values serve as a compass for our actions and describe how we behave in the world.
Leadership
Collaboration
Integrity
Accountability
Passion
Diversity
Quality
The courage to shape a better future
Leverage collective genius
Be real
If it is to be, it's up to me
Committed in heart and mind
As inclusive as our brands
What we do, we do well


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Two types of bottlers:
A) FOBO Franchised owned bottling operations.
B) COBO Company owned bottling operations.

Franchised production model
In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370
franchisees by 1910.The company operates a franchised distribution system dating
from 1889 where The Coca-Cola Company only produces syrup concentrate which
is then sold to various bottlers throughout the world who hold an exclusive territory.
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.
In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or
produce) syrup concentrate which is then sold to various bottlers throughout the
world who hold a Coca-Cola franchise. Coca-Cola 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 the resulting Coca-Cola product to retail stores,
vending machines, restaurants and food service distributors.
One notable exception to this general relationship between TCCC and bottlers is
fountain syrups in the United States, where TCCC bypasses bottlers and is
responsible for the manufacture and sale of fountain syrups directly to authorized
fountain wholesalers and some fountain retailers.
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

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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 Coca-Cola Company owns minority shares in some of its largest franchises, like
Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company
(CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce almost half
of the volume sold in the world. Independent bottlers are allowed to sweeten the
drink according to local tastes
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling
Company"


Indian History
India is home to one of the most ancient cultures in the world dating back over 5000
years. At the beginning of the twenty-first century, twenty-six different languages
were spoken across India, 30% of the population knew English, and greater than
40% were illiterate. At this time, the nation was in the midst of great transition and
the dichotomy between the old India and the new was stark. Remnants of the caste
system existed alongside the worlds top engineering schools and growing
metropolises as the historically agricultural economy shifted into the services sector.
In the process, India had created the worlds largest middle class, second only to
China.

A British colony since 1769 when the East India Company gained control of all
European trade in the nation, India gained its independence in 1947 under Mahatma
Ghandi and his principles of non-violence and self-reliance. In the decades that
followed, self-reliance was taken to the extreme as many Indians believed that
economic independence was necessary to be truly independent. As a result, the
economy was increasingly regulated and many sectors were restricted to the public
sector. This movement reached its peak in 1977 when the Janta party government
came to power and Coca-Cola was thrown out of the country.

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In INDIA


Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than
reveals its formula to the government and reduces its equity stake as required under
the Foreign Exchange Regulation Act (FERA) which governed the operations of
foreign companies in India. After a 16-year absence, Coca-Cola returned to India in
1993, cementing its presence with a deal that gave Coca-Cola ownership of the
nation's top soft-drink brands and bottling network. Cokes acquisition of local
Popular Indian brands including Thums Up (the most trusted brand in India21),
Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing,
bottling, and distribution assets but also strong consumer preference. This
combination of local and global brands enabled Coca-Cola to exploit the benefits of
global branding and global trends in tastes while also tapping into traditional
domestic markets.

Leading Indian brands joined the Company's international family of brands, including
Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In
2000, the company launched the Kinley water brand and in 2001, Shock energy
drink and the powdered concentrate Sunfill hit the market. While The Coca-Cola
Company is a global company with some of the world's most widely brands, the
Coca-Cola business in India, as in each country where it operates, is a local
business.

After a 16-years absence, Coca-Cola returned to India in 1993. The Company's
presence in India was cemented in November that year in a deal that gave Coca-
Cola ownership of the nation's top soft-drink brands and bottling network.

Coca-Cola India has made significant investments to build and continually improve
its business in India, including new production facilities, wastewater treatment plants,
and distribution systems and marketing equipment


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During the past decade, the Coca-Cola system has invested more than US$ 1
billion in India
Coca-Cola is one of the country's top international investors by 2003; Coca-Cola
India had won the prestigious Woodruff Cup from among 22 divisions of the
Company based on three broad parameters of volume, profitability, and quality.

In 2003, Coca-Cola India pledged to invest a further US$100 million in its
operations
In India, we indirectly create employment for more than 125,000 people in
related industries through our vast procurement, supply and distribution system
Virtually all the goods and services required to produce and market Coca-Cola
locally are made in India
The Coca-Cola
system in India
comprises 27
wholly-owned
company-owned
bottling operations
and another 17
franchisee-owned
bottling operations.
A network of 29 contract-packers also manufactures a range of products for the
Company
The complexity of the Indian market is reflected in the distribution fleet, which
includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow
alleyways of Indian cities, and trademarked tricycles and pushcarts.
The complete manufacturing process had a documented quality control and
assurance program including over 400 tests performed throughout the process.

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We will collaborate creatively with those who sell our products in the
marketplace, developing relationships built on mutual success, not only from our
brands, but also from our services.
Ranking: We own 4 of the worlds top 5 non-alcoholic sparkling beverage brands:
Coca-Cola, Diet Coke, Sprite and Fanta.


2010- 7000 local employees, 500 managers, over 60
manufacturing locations, 27 Company Owned Bottling
Operations (COBO), 17 Franchisee Owned Bottling
Operations (FOBO) and a network of 29 Contract Packers
that facilitate the manufacture process of a range of products
for the company
1996
Can, PET plant
started in Pune
Oct 1993
Coke relaunched
in Agra
1993 - Pune
Concentrate
Plant
Sept 1997
Acquired first bottling
plant, Bareilly
2000
6 COBO regions,
1 FOBO operation
22 Acquired,
7 Greenfield

1997 - 1999
4 bottling
companies

1998
First greenfield
plant, Ahmedabad






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Beverage industry in India; a brief insight:-

In India, beverages form an important part of the lives of people. It is an industry, in
which the players constantly innovate, in order to come up with better products to
gain more consumers and satisfy the existing consumers.

The soft-drink industry comprises companies that manufacture nonalcoholic
beverages and carbonated mineral waters or concentrates and syrups for the
manufacture of carbonated beverages.

Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft
drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks.
Cola, lemon and oranges are carbonated drinks while mango drinks come under non
carbonated category.

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Cola products account for over 60% of the total soft drink market and include popular
brands such as Coca-Cola, Pepsi, and Thumps up etc. Non-cola segment
constitutes for over 35% of the market.

Types of
beverages
Alcoholic Non Alcoholic Hot & cold Others
Examples
Beer, champagne
etc.
Non Alcoholic
wine, apple-cider,
squash,
lemonade, juices,
carbonated
Tea, coffee,
iced tea, cold
coffee
Milk,
soup
THE TYPES OF BEVERAGES (WIKIPEDIA, 2010)

Flavored carbonated beverages, or soft drinks, were developed by apothecaries
And chemists in the early nineteenth century by the addition of flavored
Syrups to fountain dispensed carbonated water. The introduction of proprietary
Flavors began in the late 1880s. Charles H. Hires introduced his root beer extract
In 1876, Vernorss Ginger Ale was marketed by James Vernor in 1880, R. S.
Lazen by perfected the formula for Dr. Pepper in 1885, and John S. Pemberton
Developed the formula for Coca-Cola in 1886.Brads Drink was introduced in 1896
and was later renamed Pepsi-Cola in 1898.

The per capita consumption of soft drinks in India is among the lowest in the world -
5 bottles per annum compared to the 800 bottles per annum in the USA. Delhi
reports highest per capita consumption in the country, 50 bottles per annum. The
consumption of PET bottles is more in the urban areas [75% of total PET bottle
(plastic bottles) consumption] whereas the sales of 200ml bottles were higher in the
rural areas. According to a survey, 91% of the soft drink consumption in India is in
the lower, lower middle and upper middle class section.
Last one century witnessed the entry of various soft drink companies but only few of
them were able to survive. The major among them are COKE and PEPSI. These are
the only two companies that has shared the whole market between them and left a
very small share for the remaining ones. This made the word cola drink synonymous
to the word soft drink.

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Entry Barriers in Beverage Market
What are the factors that made the soft drink market a duopoly market?
The several factors that make it very difficult for the competition to enter the soft
drink market include:
The factors that made the duopoly soft drink market and that make it very difficult for
the competition to enter the soft drink market include:

Network Bottling:
Both Coke and PepsiCo have franchisee agreements with their existing bottlers who
have rights in a certain geographic area in perpetuity. These agreements prohibit
bottlers from taking on new competing brands for similar products. Also, with the
recent consolidation among the bottlers and the backward integration with both
Coke and Pepsi buying significant percent of bottling companies, it is very difficult for
a firm entering to find bottlers willing to distribute their product.
The other approach to try and build their bottling plants would be very capital-
intensive effort with new efficient plant capital requirements in 2009 being more than
$500 million.

Advertising Spend:
The advertising and marketing spend in the industry is very high by Coke, Pepsi and
their bottlers. This makes it extremely difficult for an entrant to compete with the
incumbents and gain any visibility.

Brand Image / Loyalty:
Coke and Pepsi have a long history of heavy advertising and this has earned them
huge amount of brand equity and loyal customers all over the world. This makes it
virtually impossible for a new entrant to match this scale in this market place.

Fear of Retaliation:
To enter into a market with entrenched rival behemoths like Pepsi and Coke is not
easy as it could lead to price wars which would affect the new comer.



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Retailer Shelf Space (Retail Distribution):
Retailers enjoy significant margins of 15-20% on these soft drinks for the shelf space
they offer. These margins are quite significant for their bottom-line. This makes it
tough for the new entrants to convince retailers to carry/substitute their new products
for Coke and Pepsi.
BUSINESS MODELS OF





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COMPANY PROFILE:
Kandhari Beverages Pvt. Ltd


KANDHARI GROUP was established in 1967 by Late Mr. Teja Singh Kandhari, is
presently a progressive business house in India. The groups first venture was a
bottling unit as a franchisee of PARLEs soft drink manufacturing Gold Spot under
license from PARLE established at Amritsar in the north Indian state of Punjab.

The Company is engaged in the business of manufacturing, marketing and
distribution of aerated water under franchise agreement with the Coca-Cola
Company, USA. The Company has two mega Greenfield bottling plants for filling soft
drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village
Katha, Baddi, District Solan (HP). Present gross turnover of the company is approx.
Rs. 190crores. The company has also entered the power sector by setting up a 6.25
MW Wind Mill project having 5 units in the State of Maharashtra.

In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought
over PARLE brand of soft drink products, being one of the star bottlers of PARLE the
Group switched to manufacturing, bottling & marketing of Coke brand of soft drink
products.

The Group companies are fully
conscious of their socio-
economic responsibilities and
have taken up a series of
community development
programs especially the funding
& setting up of Rain harvesting
projects to conserve the scarce
natural resource

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ORGANIZATIONAL STRUCTURE



CEO (Ashish sethi)
General Manager
(Eesh sethi)
Vice-President
(Jaspal bhatia)
RED head
(Kamal sharma)
Deputy GM
(Gurdeep saggu)
SGA Manager
(Satinder)
Sales Manager
(Pragraj)
Astt Sales
Manager
Sr. Sales
Executive
Sales
Supervisors
Team Leaders
Market
developers
Salesman
Marketing
Manager
(Mohnish)
Market
Research
Executive
(Preeti)

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MISSION :
In line with our main partner coca cola we wish to refresh the world and in addition we
further aim to create value and make a difference by making our environment a cleaner and
a better place to live for our future generation.

VISSION :
Our company vision as was established by the founder of our group remains to provide the
people that work in the group, be it the owners or the managers a great place to work
where people are inspired to be the best they can be and work with quality brands and
partners to maximize profit and productivity.





LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA


COBO
FOBO
CONTRACT PACKAGING

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VISIT TO PLANT AND UNDERSTANDING OPERATIONS IN THE PLANT


Water is received from the 300 ft. tube-well and it passes through the water
treatment plant, further passing through the sand filter and the activated
carbon filter, so as to attain pure cleansed water.
In the syrup room, the concentrate received from another bottling plant
situated at Pune, is blended with the sugar syrup.
Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is added to
the mixture to form the final product.
On the other hand, simultaneously, the returnable glass bottles are
depalletized, inspected and washed for the purpose of filling in the final
product in it. This step does not take place in the PET bottle line as the bottles
once used are disposed.

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The product is finally filled in the bottles, crowned (in case of RGB)/ capped
(in case of PET bottles), labeled and cased in order to be sent into the
warehouse for distribution

INGREDIENT DELIVERY

SWEETENER
Team of professionals, work on selecting, auditing, sampling, testing, approving and
then authorizing the sugar suppliers and the list of such authorized suppliers with
approved sugar lots and along with the certificate of analysis are sent across to all
the bottling unit for procurement.

SECRET FORMULA
Created in special concentrate plants, its delivered held
and used under strict controls to maintain its integrity
and security. Each unit of concentrate is especially
identifiable to allow the
History of each
component to be
researched at any stage
of production, storage or
use.


CO2 FORMULA
When delivered to the plant, co2 comes in cylinders for easy delivery and storage.
In essence co2 a colorless and odorless gas that provides the Fizz for our
beverages.

WATER
Since water is a key component to all our beverages, its quality is critical. And since
public water quality varies around the world, each plant further treats the water it
uses. This means that before water is added to any of the beverages, its rigorously
filtered and cleansed.

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MATERIALS
Ingredients are not the only things delivered to the plant, other materials such as
bottles, cans, labels and packaging are also delivered. Coca cola plants use refillable
glass bottles (RGB) in the production process. When bottles are delivered to the
plant, they are carefully inspected to ensure that they meet the exacting standards.
Once these have passed initial inspection, they move on to be washed and rinsed.

WASHING AND RINSING
To ensure quality, each bottle is washed,
sanitized and rinsed before being filled. While
this sounds simple, the actual steps can
differ by bottling plant. In Coca cola plants
use refillable glass bottles. To ensure they
meet the cleanliness standard of the
company, bottles are first hit with pre-rinse
jets which remove a dirt or debris. They are
then soaked in a high temperature deep
cleaning solution that removes any remaining
dirt and sanitizes them. The bottles then
move to the Hydro wash where they are washed again with a deep cleaning
pressure spray.

MIXING AND BLENDING

H2O AND SUGAR
Mixing and blending begins with the steps of mixing pure water with refined sugar,
which creates simple syrup. The syrup is then
measured for the correct amount of sugar.
H2O AND SYRUP
With the syrup nearing its final state, it is
mixed with pure water, creating the finished
carbonated beverage. However, the water
and syrup must be mixed in right ratio.

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This is done by the beverage proportioning equipment. It accurately measures the
correct ratio for each and sends this mixture to the carbonator.


CO2 ADDING
Adding CO2 or carbon dioxide gas, it is the final touch that carbonates the
beverages, CO2 not only give our beverages their effervescent zest but it also adds
to the distinctive and familiar taste everyone has come to expect from our
beverages.


CAPPING
Once filled, bottles are then
capped. Company uses
different bottles, glass
bottles are usually topped
with a metal. Each cap type
then moves through different
parts of the machine which
ensures each cap stays
scratch free and is in the
right position to be precisely
placed on the bottle. The
process actually stops if the
detector doesnt find a
closure. If the bottle cap isnt
just right, the beverages can
become flat or be affected in
other ways. If this happens
the bottle is discarded.


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CODING
The bottle is now ready to be
coded. Each one of the
beverages is marked with a
special code that identifies
specific information about it.
The codes simply identify the
data the beverages was bottled.
These codes identify the date,
time, batch no. and the MRP.







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


27

PACKAGING

Once the filled beverages have passed final inspection, they are ready to be
packaged for delivery.

WAREHOUSING AND DELIVERY


In order to make sure the freshest
beverages possible get to you, each
warehouse must efficiently manage
the thousands of beverages cases
produce each day. From the
warehouse, beverages are loaded
onto the distinctive trucks.







28

BRANDS IN INDIA:







29

THUMPS- UP is a leading carbonated soft drink and most trusted
brand in India. Originally introduced in 1977, Thums Up was acquired
by The Coca-Cola Company in 1993.

Thums Up is known for its strong, fizzy taste and its confident, mature
and uniquely masculine attitude. This brand clearly seeks to separate
the men from the boys.



RGB PET Can
200 ml, 300 ml,
1000 ml
500 ml, 1.5 L,
2 L
330 ml




Internationally, FANTA - The 'orange' drink of The Coca-Cola
Company, is seen as one of the favorite drinks since 1940's.
Fanta entered the Indian market in the year 1993.
Over the years Fanta has occupied a strong market place and is
identified as "The Fun Catalyst".
Perceived as a fun youth brand, Fanta stands for its vibrant
color, tempting taste and tingling bubbles that not just uplifts
feelings but also helps free spirit thus encouraging one to indulge in the moment.
This positive imagery is associated with happy, cheerful and special times with
friends.


RGB PET Can
200 ml, 300 ml,
500 ml, 1.5 L,
2 L
330 ml


30


World's favorite drinks, the most valuable brand and the most recognizable word
across the world after OK.

COCA-COLA returned to India in 1993 and
over the past ten years has captured the
imagination of the nation, building strong
associations with cricket, the thriving cinema
industry, music etc. Coca-Cola has been very
strongly associated with cricket, sponsoring the
World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in
Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye
and Life ho to Aisi were very popular and had entered the youth's vocabulary. In
2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-
rocketed the brand to make it India's favorite soft-drink brand. In 2003, Coke was
available for just Rs. 5 across the country and this pricing initiative together with
improved distribution ensured that all brands in the portfolio grew leaps and bounds.

Coca-Cola had signed on various celebrities including movie stars such as Karishma
Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in
the past and today, its brand ambassadors are Aamir Khan and Hrithik Roshan.






RGB PET Can
200 ml, 300 ml
1000ml
500 ml, 1.5 L,
2 L
330 ml




31


Lime n' lemony Limca , the drink that can cast a tangy refreshing spell on anyone,
anywhere. Born in 1971, Limca has been the original thirst choice, of millions of
consumers for over 3 decades. The brand has been displaying healthy volume
growths year on year and Limca continues to be the leading flavors soft drink in the
country.
The sharp fizz and lemony bite combined with the single minded positioning of the
brand as the ultimate refresher has continuously strengthened the brand franchise.
Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca
and walk away a new person.


RGB PET Can
200 ml, 300 ml,
1000 ml
500 ml, 1.5 L,
2 L
330 ml




Diet Coke was born in 1982 and quickly became the No. 1 sugar-
free drink in diet-conscious America. Known as Diet Coke in the
U.S., Canada, Australia and Great Britain, and as Coca-Cola light in
other countries, it's now the No. 3 soft drink in the world.
It's the drink for people who want no calories, but plenty of taste. Ad
campaigns around the world for Diet Coke share a playful,
sophisticated and fun-loving attitude.




Can
330 ml

32


Maaza was launched in 1976. Here was a drink
that offered the same real taste of fruit juices and was available throughout the year.
In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the
fruit drink category.

Over the years, brand Maaza has become synonymous with Mango. This has been
the result of such successful campaigns like "Taaza Mango, Maaza Mango" and
"Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome,
natural, fun drink which delivers the real experience of fruit.

The current advertising of Maaza positions it as an enabler of fun friendship
moments between moms and kids as moms trust the brand and the kids love its
taste. The campaign builds on the existing equity of the brand and delivers a relevant
emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza
Maaza".



RGB Tetra pack PET
250 ml 200 ml 1.2 L







33

Worldwide Sprite is ranked as the No. 4 soft
drink &is sold in more than 190 countries.
In India, Sprite was launched in year 1999 & today it has grown to be one of the
fastest growing soft drinks, leading the Clear lime category.
Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,
Sprite has stood for a straight forward and honest attitude. Its clear crisp refers hing
taste encourages the today's youth to trust their instincts, influence them to be true to
who they are and to obey their thirst.







Orange juice with real orange pulp with this slogan, Coca cola
launched its minute maid brand of orange juices for the first time in
the country at Hyderabad. Though Coca cola India had in its
portfolio the highly successful Maaza brand in the juices segment
(which it got from the chouhans), this is the first time the company is
introducing some of the products from its own Minute maid portfolio.
The roll out of the naturally refreshing orange beverage with real pulp has been
designed to extend the Companys market leadership in the juice segment and with
this launch; it is expected to further extend its leadership.


PET
400ML,1.25 L
RGB PET Can
300 ml
500 ml, 1.5 L,
2 L
330 ml

34



Water is thirst quencher that refreshes, life giving force that washes all the toxins
away. A ritual purifier that cleanses, purifies, transforms. Water the most basic need
of life, the very sustenance of life, a celebration of life itself. The importance of water
can never be understated. Particularly in a nation such as India where water governs
the lives of the millions, be it as part of everyday rituals or as the monsoon which
gives life to the sub-continent.

Kinley water understands the importance and value of this life giving force. Kinley
water thus promises water that is as pure as it is meant to be. Water you can trust to
be truly safe and pure. Kinley water comes with the assurance of safety from the
Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along
with the latest technology to ensure the purity of our product. That's why we go
through rigorous testing procedures at each and every location where Kinley is
produced.

Because we believe that right to pure, safe drinking water is fundamental.




Kinley water Soda
500ml, 1L 1L





35


In the company's journey towards the vision 'leading the beverage revolution in
India', now even Garam matlab Coca-Cola A hot new launch from Coca-Cola
India
Georgia, quality tea and coffee served from state of the art vending machines is
positioned to tap into the nations biggest beverage category.

Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is
available in a range of 7 sizzling flavors, adrak, elaichi, masala and plain tea
cappuccino, mochaccino and regular coffee.

Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata.
Georgia aims to become the consumers preferred choice of hot beverage when he is
on the go; the brand is well on course to achieving its vision.

While Georgia is a mass market offering, Georgia Gold is the premium brand which
caters to the connoisseur. Made from freshly roasted and ground coffee beans,
Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee.
Currently available exclusively at McDonalds outlets across the country Georgia
Gold has driven coffee sales through the roof. The success of hot beverages from
Georgia Gold has resulted in extension into the cold category, with the introduction
of Ice Tea and Cold Coffee.








36

BCG (BOSTON CONSULTING GROUP) APPROACH


In the BCG approach, a company classifies all its Bus according to the growth share
matrix. Coke is one of the main product lines of the Coca Cola Company. It is the
one which is giving maximum revenues to it by different products in this line. Here
we have classified some of its major products in the BCG matrix on the basis of their
fame and liking of the people.





Stars - Coke, Limca ? Kinley, Diet coke, Sprite,
Nimbu fresh, Pulpy orange
Cash cows - Fanta,
Thumps up
Dogs - Kinley soda






37

Michael Porters Five Force Analysis










BARGAINING POWER
OF SUPPLIERS
The bargaining power of
suppliers is very low.
As the coca cola company
have developed
captive suppliers
& entered into a contract.
So the company
is not at the mercy
of the suppliers.




BARGAINING POWER OF
BUYERS
Is very high
due to the presence
of various
brands and also
the unorganized sector.
This gives the buyer
a wide variety
of brands to
choose from.
There is additional
pressure from buyer
to introduce schemes
and reduction in cost.
Threats from Substitutes

Fruit Juices
Water
Lemonade
Local Cola's
Others Cold Beverages

Threats from New Entrants

As there is no report of any new
company entering the
Beverage market.
As it reqires large amount of capital.

EXISTING
COMPETITORS

Pepsi
Parle
R.C Cola
others

38

SWOT ANALYSIS

SWOT analysis is a basic, straightforward model that provides direction and serves
as a basis for the development of marketing plans. It accomplishes this by assessing
an organizations Strength (what an organization can do) and Weakness (what an
organization can not do) in addition to Opportunities (potential favorable conditions
for an organization) and Threats (potential unfavorable condition for an organization).
SWOT analysis is an important step in planning and its value is often underestimated
despite the simplicity in creation. The role of SWOT analysis is to take the
information from the surrounding and separate it form internal issues (strength and
weaknesses) and external issues (opportunities and threats). SWOT analysis assists
the firm in accomplishing its objectives (strength or opportunity) and overcoming the
obstacles (weakness or threats).




Better network covers whole of the city.
Brand recognition brand image among customers
Product availability coca cola has distributors all over
India so the product is regularly supplied to its outlets,
Maximum market share
Brand equity high equity in the market.
Advertisement policy CocaCola Company endorsed
with famous personalities like Aamir Khan, Hrithik Roshan,
Akshya Kumar, Priyanka Chopra, Kareena Kapoor and many
more.
Bottling plants there are 29 bottling plants in India.
These plants are company owned and not franchised like
Pepsi.
Promotional schemes to activate sales company is
providing Umbrellas, Chairs, Tables, racks, flanges,
visicooler & glasses.
People Reliance on Quality of our Product and Brand.
Knowledge Regarding Competitor
Hardworking Staff & Distributor
STRENGTH


39



Retailers interested in short term gains.
Customer feedback system is not effective.
Product availability Distributors give products to specific
retailers only when they have limited due to low
production.
CANS are not available.
This year Pepsi giving hard time to coca cola due to strong
relationship with retailers.
Coca-Cola giving less schemes and incentives to its retailers
then Pepsi.
Customer demand is augmented day by day, which is not
satisfied well on time.
Retailers complain for irregular visit of distributors.
Promotional schemes Schemes are not available to all
retailers.
Greater opportunity in rural areas where coca cola CAN
gain a substantial base.
Company should give more number of schemes.
Improvement in distribution channel.
70% of total population lies in rural area, and market
penetration of soft drink is only 12% hence there is greater
scope of increasing revenue of the coca cola company.
Covering greater institutional areas as younger generation
gets much fascination out of such beverages
Coca cola can create more monopoly outlets by giving
heavy discounts as brand image and quality speaks itself.
Opening new outlets in convent schools, Hotels and multi
activity channels ,as more urbanization
Improvement in distribution channel and in bottling plant.
In the present scenario can come up with more verities in
the fruit drink along with more flavours.

40


























Future Plan



Effective service
Increase visibility by
giving more visi-
cooler, boards,
hoarding to retailers.
Activation
Highest Quality
Wide range of
products is being
available
Health conscious people are boycotting
soft drinks.
Threat from Competitors as they give
offers at cheaper rates than coca cola.
Its too seasonal
Preference of juices and energy drinks
over cold drinks
May lose the market share to its
competitor, if they dont look upon the
demands of retailers who ultimately sell
product to the end customer.
Impulse customers bye what ever is in the
offer, so company should give offers
regularly
Retailers are more inclined towards Pepsi
as better services and good relationship
are being made by them.
Lack of adequate new trends.
THREATS


41

COMPETITOR ANALYSIS











Coke,
42.90%
Pepsi,
31.20%
Cadbury
14.90%
Others
11%
Market Share in 2006
Coke,
42.80%
Pepsi,
31.10%
Cadbury
15%
Others,
11.10%
Market Share in 2007
Coke,
42.70%
Pepsi,
30.80%
Cadbury
15.30%
Others,
11.2%
Market Share in 2008
Coke,
41.90%
Pepsi,
29.90%
Cadbury
16.4%
Others,
11.80%
Market Share in 2009

42

MARKET SHARE (Brands) -------







Sale of (CSD) Carbonated Soft drinks Cases (in billions)


The volume of the U.S CSD business declined -2.1% in 2009, to a total of 9.4 bil
cases. That is somewhat better than the -3% decline in 2008. The CSD category last
grew in 2004 as shown in FIG. It was down in -2.3% in 2007. With the volume
declines of the last five years, the categorys volume is back down to about where it
was in 1996, eliminating years of growth.


BRANDS(Top 7) 2009 2008 2007 2006
Coke 17.0 17.3 17.2 17.3
Pepsi 9.9 10.3 10.7 11.0
Diet Coke 9.9 10.0 10.0 9.8
Diet Pepsi 5.6 5.7 6.0 6.0
Dew 6.7 6.8 6.6 6.6
Sprite 5.5 5.6 5.6 5.7
Cadbury (dr. pepper) 6.1 6.1 5.9 5.8

43



Coca-Cola and Pepsi both lost share and volume last year. Cokes CSD volume was
down -3.9% worse than in 2008 when it was down -3.1%.
PepsiCo was down -5%, worse than its 2008 -4% result. However, Dr Pepper posted
a CSD volume increase of +4.8% after being down -1.3% 2008.







Regular Pepsi and Diet Coke moved into virtue tie, each with a 9.9 share. Its shows
Pepsi with about 100,000 more cases than Diet Coke, but that incorporates some
numerical rounding, so they are essentially tied, as 100.000 case difference amounts
to 0.001%. The two big colas- Coke and Pepsi continued to deteriorate, with coke
down -4% and Pepsi down -5.5%. Pepsi fell below 1bil cases in 2008, for the first
time in decades.

0 2000 4000 6000 8000 10000 12000
2006
2007
2008
2009
4357.5
4241.1
4107.6
3947
3167.5
3082.8
2960.4
2815.3
1512.9
1491.3
1471.2
1541.5
1119.9
1104.6
1081.8
1112.3
Sale of Cases of Companies (in mlns)
COKE PEPSI CADBURY OTHERS

44







DIRECT COMPETITOR COMPARISON

COKE (KO) PEPSICO
Market Cap 120.64B 102.49B
Employees 92,800 203,000
Rev. Growth 5.40% 4.50%
Revenue 30.99B 43.23B
Gross Margin 64.22% 53.51%
EBITDA 9.78B 9.60B
Operating Margins 27.57% 18.69%
Net Income 6.82B 5.94B
EPS 2.930 3.7700
PE 17.85 16.86



0
200
400
600
800
1000
1200
1400
1600
1800
Coke Pepsi Diet Coke Diet Pepsi Dew Sprite Cadbury
2006 1760.1 1113.2 998 607 666.3 575.2 588.2
2007 1707.3 1059.8 990 594.9 659.6 553.3 585.9
2008 1664.6 990.9 960.3 550.3 653 536.7 586.1
2009 1598 936.4 936.3 525.5 630.1 515.2 575.9
N
o
.

o
f

c
a
s
e
s

Sale of cases of brands(in mlns)

45

Comparative Balance Sheet
Particulars Dec-08 Dec-09 Absolute Change % change
Current Assets
Cash & Cash Equivalents 4701000 6959000 2258000 48.032
Short term Investments 278000 2192000 1914000 6.88
Net Receivables 3090000 3758000 668000 0.216
Inventory 2187000 2354000 167000 0.076
Other Current Assets 1920000 2226000 306000 0.159
Total Current Assets 17551000 12176000
Fixed Assets
Long Term Investments 5779000 6755000 976000 0.168
Property Plant & Equipment 8326000 9561000 1235000 0.148
Goodwill 4029000 4224000 195000 0.048
Intangible Assets 8476000 8604000 128000 0.0151
Other Assets 1976000 1733000 -243000 -0.1402
Total Assets 40519000 48671000

Current Liabilities
Accounts Payable 6152000 6921000 796000 0.125
Short Term Debt 6531000 6800000 269000 0.0411
Other Liabilities 305000
Total Current Liabilities 12988000 13721000
Long Term Debt 2781000 5059000 2278000 0.8191
Other Liabilities 3401000 2965000 436000 0.218
Deferred Long Term Liability
Charge 877000 1580000 703000 0.801
Monthly Interest 547000
Total Liabilities 20047000 23872000

Stockholders Equity
Common Stock 880000 880000
Retained Earnings 38513000 41537000 3024000 0.0785
Treasury Stock -2.4E+07 -25398000
Capital Surplus 8537000 7966000 -571000 -0.0716
Other Stock hold Equity -2674000 -757000
Total 40519000 48671000








46

















Ratio Analysis

1. CURRENT RATIO
Current Ratio = Current Assets/ Current Liabilities

Current ratio is used to measure the short term financial solvency of a
company ie. whether the company is able to meet its short term liabilities or
not. A current ratio of 2:1 is generally considered satisfactory.
Thus, from the above graph we can interpret that the short term solvency
position of the company is fair.
0.95
0.92
0.94
1.28
0
0.2
0.4
0.6
0.8
1
1.2
1.4
December'06 December'07 December'08 December'09
C
u
r
r
e
n
t

R
a
t
i
o

Time Period
Current Ratio
Trend Analysis
Year Current
Assets
% IBT %
Dec-07 12105000 100 7873000 100
Dec-08 12176000 100.59 7439000 94.487
Dec-09 17551000 144.99 8946000 113.63

47

2. QUICK RATIO
Quick Ratio = Liquid Assets/ Current Liabilities
Liquid Assets = Current Assets stock Prepaid expenses





Quick or Acid Test or Liquid Ratio helps the company to assess its short term
financial position in a better way. It measures the firm's capacity to pay off current
obligations immediately and is more rigorous test of liquidity than the current ratio A
liquid ratio of 1:1 is generally considered acceptable.
Thus, from the above graph we can interpret that the short term liquidity position of
Coke is fairly good but still not satisfactory as the ratio should be 1:1







0.58 0.58
0.62
0.95
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
December'06 December'-07 December'08 December'09
Q
u
i
c
k

R
a
t
i
o

Time Period
Quick Ratio

48

3. NET PROFIT RATIO

Net Profit Ratio = Net Profit/ Net Sales *100
Net Profit= Gross profit + operating & non-op. incomes - Non-op. expenses






Net Profit Ratio indicates net margin earned on sales in terms of percentage. NP
ratio is used to measure the overall profitability and hence it is very useful to
proprietors. This ratio also indicates the firm's capacity to face adverse economic
conditions such as price competition, low demand, etc. Obviously, higher the ratio
the better is the profitability.
Overall the companys profitability position is reasonably fair.






26.19
25.13
26.44
26.56
24
24.5
25
25.5
26
26.5
27
December'06 December'07 December'08 December'09
O
p
e
r
a
t
i
n
g

P
r
o
f
i
t

Time Period
Operating Ratio

49

4. OPERATING RATIO
Operating Ratio = Operating Cost/ Net sales * 100
Operating Cost = Cost of Goods Sold + Operating Expenses



Operating Ratio measures the operating cost of the concern in terms of percentage
of sales. Operating ratio shows the operational efficiency of the business. Lower
operating ratio shows higher operating profit and vice versa.












26.19
25.13
26.44
26.56
24
24.5
25
25.5
26
26.5
27
December'06 December'07 December'08 December'09
O
p
e
r
a
t
i
n
g

P
r
o
f
i
t

Time Period
Operating Ratio

50

PROJECT

MARKET STUDY ON 300ML SKU




History of Contour bottle design
The equally famous Coca-Cola bottle, called the "contour bottle" within the company,
but known to some as the "hobble skirt" bottle, was created in 1915 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 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.

51

Chapman J. Root, president of the Root Glass Company, 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!







52

Objectives of the study:-

The main objective of this study lies in studying and understanding Market
which comprises of consumers and retailers perception and opinion about the
product 300 ML RGB.
To find out competition provided by its competitors and the extra benefits or
offerings or services provided by its competitors.
Comparative analysis among brand packages.

Methodology
The selection of the research method is crucial for the conclusions as it affects what
we have to say about the cause and factors influencing the project work. It was
important to choose a research method which was within the limits of what could be
done. Time, feasibility, ethics and availability to measure the phenomenon correctly
were issues constraining the project work. Research was conducted in
CHANDIGARH.

Instrument
TWO questionnaires was devised to carry out one for Consumers and other for
Retailers

Sources of Data
1.) Primary Sources
The sample consists of students, employees, people on the streets and retailers.
Various measurable factors were identified. Based on these variables, primary
sources were identified.

2.) Secondary Sources
It was collected from the employees and HR of the company; they provided few
editions of the annual magazines being published by Kandhari, which really helped
in gathering the information.



53

QUESTIONNAIRE DESIGN

First of all for designing the questionnaire, there are scaling techniques available
like:
1) Comparative Scales.
a) Paired Comparison
b) Rank order
c) Constant Sum
d) Other Techniques
2) Non Comparative Scales
a) Continuous Rating Scales
b) Itemized Rating Scales
Likert Scale
Semantic Differential Scale
Staple
Out of all these mentioned techniques for designing the questionnaire, I have opted
for Comparative Scale Technique since this way it becomes much more easy for
answering the questions and also the context in which the questions have been
asked, gets delivered across to the other party easily. And thus we can analyze the
responses in a better way.
And to obtain the graphical view of the responses being generated, we have used
the Bar graph and Pie chart analysis, since it also helped in doing justification to
the responses being gathered from the sample, as it again clearly becomes visible
that how much percentage of customers agree with which question being asked and
thus accordingly a collective percentage of the participants, really helped us to
gather/ conclude our findings in a more effective and an efficient manner

Method of Data Collection
Data collection means gathering information to address those critical evaluation
questions that were identified earlier in the evaluation process. Data was collected
by conducting opinion surveys by filling out questionnaires on paper and on internet.


54


Data Collection:
The data was collected through survey.

Consumers
Number of consumers who were survey 100
Number of responses through email 25
Number of responses obtained by personal interview 75

Retailers
Number of retailer who were survey through personal interview 100

Sampling
Sampling involves selecting units from a population of interest so that by studying
the sample one can fairly generalize the results back to the population from which
they were chosen. In the present course work, convenience sampling was used and
an aggregate sample size of 100 consumers was considered.

Sampling technique

Sample Type: Non Probabilistic Convenience sampling was followed.
Convenience sampling is used in exploratory research where the researcher is
interested in getting an inexpensive approximation of the truth. As the name implies,
the sample is selected as per the convenience
Sample size: 100

Analysis and Discussion
The variables relevant for analysis of data were collected. Various analysis and
interpretations have been shown in graphical and tabular form




55

Analysis of 300ML sku (Consumers)

This graph makes a distinction between the number of males and number of
females with whom sampling was conducted. The percentage is almost the
same in both categories.

This graph depicts the total number of consumers divided on the basis of the
age group they belong to. The age of consumers included in the sampling
activity ranged from 10 years. Accordingly the age groups 10 to 20, 20 to 30,
30 to 40, 40 to 50, 50 to 60 and 60 above.


MEN, 48%
WOMEN
52%
Gender
10
32
20
18
12
8
0
5
10
15
20
25
30
35
10 to 20 20 to 30 30 to 40 40 to 50 50 to 60 above 60
Age group

56

1. Favorite soft-drink?
a) Coca cola b) Pepsi c) others

The following graph denotes
the feedback of consumers
irrespective of the age group
they belong to or their
gender. This is an overall
perception of the consumers
towards their Favorite soft
drink. Coke has larger share
then Pepsi in Chandigarh.


I. If Coke which brand
a) Thumps-up b) Sprite c) Coca-Cola d) Maaza
e) Limca f) Fanta

It was found that out
of 100 correspondences 47
of them prefer Coke.
From these 47
correspondences favorite
brand of Coke was asked.
The outcome of survey is
shown in graph. Thumps is
preferred by youth and
Limca by all age group but
more famous among old
people


Coke, 47%
Pepsi, 40%
Others,
13%
Favorite Soft Drink
10
15
3
4
3
12
0
2
4
6
8
10
12
14
16
If Coke then which product

57

II. If Pepsi which brand
a) Dew b) 7-up c) Pepsi d) Slice
e) Mirinda (lemon) f) Mirinda (orange)

It was found
that out of 100
correspondences 40 of them
prefer Pepsi.
From these 40
correspondences favorite
brand of Pepsi was asked.
The outcome of survey is
shown in graph. Pepsi and
Dew are most selling brands



If Pepsi, Have you ever tried coke product YES / NO

i. If Yes, then what made you change over from Coke to Pepsi
a) Taste b) Flavor c) Celebrity
d) Advertisement e) Brand loyalty f) Availability

40 correspondences who said that
their favorite soft drink is Pepsi
were asked that have they tried
Coke and all of them said yes, they
were again asked what made them
to choose Pepsi instead of Coke,
common answer was taste.
Advertisement also had great
impact.

10
21
7
2
0 0
0
5
10
15
20
25
Dew Pepsi 7 up Slice Mirinda (o)Mirinda (L)
If Pepsi then which product
3
7
15
6
6
0 5 10 15 20
Why Pepsi instead of Coke

58

2. Which size you prefer more
a) 200ml b) 300ml c) Pet bottle (500ml)
d) Pet bottle (2L) e) Can

From 100
respondent 43
people like pet
bottle and 28
people like 300ml
8 people
preferred cans
and rest 2l and
200ml.Pet bottles
are more famous
among youth.
According to
survey done Pie
chart shows which brand package size are preferred by consumers

3. Do you think rate of 300ml bottle which is available at Rs.12 is worth it?
a) Yes b) No

Out of 100 People 53
people said the rate of 300ml is
more then what it should be
keeping in mind the inflation rate
and 47 people said yes rate of
300 ml is fine and 300ml RGB
has 85% share in market when
compared with 200ml RGB, it
clearly shows that people want
more while they want to spend
less money.
Preferred Brand package
200 ml
300 ml
500 ml Pet
2 L Pet
Cans
YES, 47%
NO, 53%
Rate of 300ml is worth it?

59

4. Do you find the display attractive of
a) Coke b) Pepsi c) Same

37 people think
that Pepsi display is
more attractive than
Coke display and 34 said
Coke display is better
and 29 said both are
same neck to neck. From
this it can be seen that
companies spend lot of
money in
advertisements.



5. Source of supply of soft drink
a) Grocery store b) Confectioneries c) Eating & drinking d) Others

It was found that source
of supply of soft drinks is
more from convenience
than grocery store or
eating & drinking hubs. It
shows that there are
more convenience store
in Chandigarh, it is found
that mostly grocery shop
only keep Pet bottles,
they avoid RGB was it
require lots of attention.

Pepsi, 37%
Coke, 34%
Same, 29%
Display Attractive
23
39
31
7
0
5
10
15
20
25
30
35
40
45
Source of supply

60

6. Have you ever experience that, you asked for the Coke product and
vendor supplied you with Pepsi product
a) Yes b) No






Out of 100 respondents, it was coincidence that 50 people said YES and
same number of people said NO. From this it can be concluded that mostly
vendors sell those things which consumers doesnt ask for

i. If yes, did you buy that Pepsi product
a) Yes b) No

50 persons said
that it happened with them that
when they had asked for Coke
product and vendor supplied
with Pepsi product in that case
another question was asked
Did they buy that product?
36 people said YES they bought
and 16 dont. This shows the
brand loyalty of 16 people with
Coke.

YES, 50%
NO, 50%
34
16
0
5
10
15
20
25
30
35
40
YES NO

61

7. Choose ONE you like most out of given TWO:

Following are the answer given by 100 respondents as they have to choose one out
of two given. Respondents choose which they liked the most.
With this it can be analyze, Brands of both companies has direct competition with
each other like Maaza competitor is Slice, Limca competitor is Mirinda Lemon
likewise Fanta with Mirinda orange, Sprite with 7-up and Coke with Pepsi








Dew,
74%
Thu
ms,
26%
Thums-up vs Dew
Coke
56%
Peps
i
44%
Coke vs Pepsi
Maa
za,
62%
Slice
38%
Maaza vs Slice
Fant
a,
71%
Miri
nda,
29%
Fanta vs Mirinda
(orange)
Sprit
e,
63%
7-up,
37%
Sprite vs 7-up
Limc
a,
73%
Miri
nda,
27%
Limca vs Mirinda
(lemon)

62

Analysis of 300ML sku (Retailers)

1.) TYPE OF SHOP:
a) Grocery b)Convenience c) Eating & Drinking

In survey almost
equal number of types of
shops are covered, so that
it will not favor any
question that been asked
to any particular type of
shop. 100 RGB Retailers
has been surveyed. From
this it is analyze that
convenience shops are
more in Chandigarh than
other two types of shops.

2.) Which package sells more:
a) 300ML b) PET c) SAME

From 100 RGB retailers it
was asked which package
sells more in your shop, it
was found that Pet bottles
and Rgb almost sells equal
in city. RGB sells more
because Pet bottle mostly
used in household and Rgb
sells more at E&D and
convenience, these types of
shops are more in the city.

Grocery,
33%
Convenienc
e, 34%
Eating &
Drinking,
33%
Type of shop
PET, 45%
300 ml,
48%
SAME, 9%
Which package sells more

63

3) Which 300ml RGB brand you are more satisfied to sell?
a) Pepsi b) Coca cola c) Same

50 retailers out of 100 are
more satisfied to sell Coke
then Pepsi and 30 retailers
are inclined towards Pepsi
and 20 are satisfied with
both. This shows that
demand of coke is more
thats why vendors are
satisfied or in these 50
monopoly or discounted
outlets are there of coke.



I. If PEPSI, why?
a) More margin/schemes than coke c) Brand loyalty
b) Services d) Supply


Out of 30
those who are satisfied
with 300ml Rgb of Pepsi
were asked why Pepsi?

17 of them said more
margin then Coke
13 are more satisfied with
Pepsi services than which
Coke offered.

COKE, 50%
PEPSI,
30%
SAME,
20%
0
13
17
0
0 5 10 15 20
Why Pepsi

64

4) Reaction towards 300ml RGB, are you happy to sell?
a) Satisfied b) Mix response c) Not satisfied

Out of 100 retailers only
47 are satisfied which
less than 50% of total
outcome. Retailers are
facing many problems by
selling glass bottle. They
prefer to sell Pet bottles
instead of glass bottle.
Glass bottle require lots
of maintenance and it is
also quite expensive to
refill glass bottle for companies.

I. If Not satisfied, what problems you are facing?
a) Margin is less then Pet bottles d) Space problem
b) Breakage / Replacement problem e) Change
c) Sometime you need stock but due to empty cant buy it

Space
problem is mostly
faced by grocery
store; they are
more interested
in pet bottles. Pet
bottles also give
more margins
and there are no
issues of empty
and breakage is
also minimized
43
47
10
0 10 20 30 40 50
0
2
4
6
8
10
12
14
16
18

65

5) Do you think 300ML RGB should be replaced with 300ML Pet bottle?
Yes
No
Through internship
I came to know about the problems that are being faced by vendors regarding 300ml
Rgb. So I think of if glass bottle being replaced by pet bottle

6) Do you think rate of 300ml bottle which is available at Rs.12 is worth it?
a) Yes b) No
74 retailers think the rate of
300ml Rgb bottle which is available at Rs.12 is worth it keeping in mind the scenario
of inflation rate and rest 26 think that it is not worth it.
YES, 100%
300 ml RGB should be replaced with 300 ml
Pet
YES, 74%
NO, 26%

66

Details of actual work undertaken


Coca cola has its own management system which is a major tool that helps
management in problem solving and framing marketing strategy.
Followings are done in CHANDIGARH during INTERNSHIP of 3 months.








ROUTE RIDDING
CREATE MARKET FOR 200ML RGB
MERCHANDISING IMPACTING (MIT)
SCOPE OF OPPORTUNITY FOR OPENING NEW OUTLETS
COKE VS PEPESI
DEVELOPMENT/IMPROVEMENT/COMPLAINTS
PRESELL ORDER
EDSR (EVERY DEALER SURVEY REPORT)

67


Route Ridding was the first thing done during 3 months of internship.
In route riding the task was to go along with salesman in truck, the main motive of
route ridding is to see how orders being taken from vendors and different schemes
being told by salesman, schemes changes daily.
Through route ridding it came to know that outlets are classified in two categories
which are as follow -:













Based on Consumption pattern


ROUTE RIDDING
OUTLETS
Consumption Volume

68

E&D: - This stands for Eating & Drinking outlets. Generally all the RESTUARANTS,
HOTELS, FAST FOOD come under this.

GROCERY: - This is a part of merchandising. Generally all the GENERAL stores
and GROCERY shops comes under this category.

CONVENIENCE: - Includes outlet which are small stores or shops, generally
accessible locality. There are often located along side busy roads. It includes STD,
PAN, CONFECTIONERY shop etc.


Based on volume pattern

DIAMOND: - Those outlets are known as Diamond outlets where the annual sale of
Coca cola soft drinks is more than 800 crates.
GOLD: - Those outlets are known as Gold outlets where the sale is in between 500
crates to 800 crates per annum.
SILVER: - Those outlets are known as Silver outlets where the sale is in between
200 to 499 crates per annum.
BRONZE: - Those outlets are known as Bronze outlets where the sale is less than
200 crates per annum.

VOLUME
DIAMOND GOLD SILVER BRONZE

69



































70


In three months internship another task was given to create market for
200ml bottle i.e. CHOTA COKE. Task was to go to vendors, tell them about the
availability of the product is there, which was not there earlier, and to convince
the retailer to buy 200ml coke.
Strategies where made to sell 200ml coke, different scheme were given
Some areas surrounding Chandigarh are AMC, AMC are the area like villages,
colonies etc. where lower middle class people resides. These area are operated
by distributors not directly by FOBO.
Following data show the order taken from the vendors in Manimajra an AMC.





These above orders were mainly in consideration of 200 ml and Cans, as it was told
that the orders from this AMC are not there regarding 200ml and cans.



This was another task that was given on every Fridays and Saturdays in a week.
In this, task was to go along with MD (Market developer) and check out each outlet
under the area of Market developer. Main motive of market impacting are as follow

To see that if all products are available at that particular outlet or not,
If not then products are being made available to vendors.
To see Visi-cooler is at prime location or not
Products are arranged in COLAGE in Visi-cooler, Sequence of COLAGE
is COKE, Thumps-up, Limca, Sprite, Fanta, Maaza, and Minute-maid.
Any problem being faced by him regarding stocks and services.

CREATE MARKET FOR 200ML RGB
MERCHANDISING IMPACTING (MIT)
No. of shops visited Order taken
15
200ml coke 14 cases
CAN 6 cases

71


This was another very interesting task that was given. Main motive was to open new
outlets. In this Visi-cooler i.e. SGA (Sales Generating Asset) was to be provided to
the new outlet. Main focus for opening new outlet was not any shop or restaurant.
New outlet should be open at the fuel pumps in Chandigarh. SGA should be given to
the fuel pumps.
What I observed was many fuel pumps has their own food court or it was company
owned.
There are 22 fuel pumps in Chandigarh out of which 7 of them were convince to sell
Coca-Cola products and SGA were given to them.


Development/ Improvement/Complaints Performa were made for the vendors. In this
all the complaints were registered which were facing by the outlet owners; this was
done to improve the services of Coca-Cola and to make development.
It was found that majority of share is of Coke in Chandigarh nearly 60% and
strangely same percentage of owners i.e.60% are not satisfied with Coke, they have
complaints moreover they are happy to sell Pepsi instead of Coke. They just keep
Coke because of consumer demand else they are not satisfied.
Rests 40% who are satisfied are either monopoly counter of Coke or Discounted
outlets or has good relationship with the salesman.
Through this it was found that services of Pepsi are far better than Coke and margin
is also little higher in case of Pepsi.
Mostly complaints of Outlets are as follow:-
Replacement was not done of breakage, expired products, regarding Quality.
Margin is high in case of Pepsi as compare with Coke.
Stock of each brand packs are not available or given to specific outlets.
Visi-cooler problem not working well or require bigger Visi-cooler as
formalities has been done still nothing done.
Schemes were not given to them.
SCOPE OF OPPORTUNITY FOR OPENING NEW OUTLETS
DEVELOPMENT/IMPROVEMENT/COMPLAINTS

72



EDSR was to get how much stock does the particular outlet has. In this to get the
mobile number of the owner so that daily message being send to the owner
regarding the Schemes, in Coke schemes changes everyday. It also helps to
compare the stock between Coke and Pepsi available at outlets.

Below is Performa which was needed to be filled up:-

SECTOR- EDSR DATE-
Outlet name Phone no.
Visi Empty RGB 500 Pet 2L PET Soda Pet Cans Water
Ko Pc Ko Pc Ko Pc Ko Pc Ko Pc Ko Pc Ko Pc


Performa need to be filled in numbers that how much stock does outlet has.
KO Coca-Cola
PC Pepsi






Presell order was to get order one day prior of the delivery. Orders were taken from
the vendors one day before and delivery was given next day. This was done
because vendors were facing problems regarding the brand package size that are
not available when they want.
Orders were taken of all brand packages with main focus on Cans and Juices. There
were shortages of Cans, only some parts of the city are being supplied with Cans.
Vendors always gave complaint regarding stock, whether they required or not. So
this problem was solve out through presell order.




EDSR (EVERY DEALER SURVEY REPORT)
PRESELL ORDER

73

Findings of the Study

In the due course of time of project, which lasted for 8 weeks, I got the chance of
visiting to many outlets and also interact with each and every person of those outlets
in Chandigarh. By formal interaction with the dealers and retailers, I got to know
many things from the outlets. In this particular city Coca cola has larger share than
Pepsi. But there are few mixed outlets too, so to increase the market share of Coca
cola it should tap all the mixed outlets. About 60% of market is owned by it, yet more
is expected to be achieved

Share of 300ML in restaurants and hotels of Chandigarh is 69% whereas 2L
share is 21%; 500ml pet has 6% and cans have 4%.

Distribution channel is effective at present but in long run it needs to be
upgraded. Retailers in Chandigarh comes under direct operations and
retailers in small town in surrounding areas of Chandigarh comes under
indirect operations

The major competitor PEPSI is getting the market aggressively through its
services and high margin issues.

Retailer in some area revealed that they are not getting schemes i.e.
distributors are not providing schemes properly, basically in rural areas.

Minute maid Nimbo Fresh and 200ml RGB brand packages are getting
popularity.











74

Recommendations


I strongly believe that RGB(refill glass bottle) should be replaced with Pet
bottles of same size because it will solve out all the problems which are as
follow :-
I. For Retailers
a) Breakage
b) No empty bottles required to fill carat
c) No extra space required to keep the carat outside shop
II. For Company
a) To carry the empty carat back to manufacturing unit to refill again
b) Cost will be reduced Pet bottle are cheaper than Glass bottle
c) Process of rinsing and washing RGB bottle again will be eliminated
which will lead to less wastage of water.

Services of Pepsi are far better than Coke, good relationship with vendors,
solving any problem with in no time should be done

Due to the current prices, an eyebrow raiser for some, the product could be
sold in packs of 2 or more and there could be a price reduction.

New flavors can be introduced into the market as early as possible consumers
were eager to know if the drink would come in more flavors, health drinks like
milk proteins content soft drink can be invented

Younger generation are more interested in soft drinks ,so new openings in
institutional areas should be increased

Use some proper methodology to provide the information about the schemes
directly to the retailers. Company has to try to sort out the personal
misunderstandings between distributors and retailers.



75

Limitations


Time and cost constraints were also there.

A Samples size of 100 has been use due to other work also done regularly
which was given to us by company.

The time period of study was only for three month so it was not possible to
cover all the areas and go into the depth of the problem and make analysis.

Chances of some biasness could not be eliminated.

Lastly, some amount of error exists in the data filling process because of the
following reasons.

Influence of others.
Misunderstanding of the concept.
Hurried filling of the questionnaire.


























76



References & Bibliography



Websites Visited:


http://www.thecoca-colacompany.com

http://www.coca-cola.com

http://www.ko.com

http://www.google.com

http://www.wikipedia.org



















77

Annexure

Questionnaire of consumer

Name of the respondent
Gender: a) Male b) Female
Marital status: a) Married b) Single
Age: a) 10-20 b) 21-30 c) 31-40 d) 41-50 e) 51-60 f) >60
Education: a) School going b) Intermediate (+2) c) Graduate d) Postgraduate
Occupation: a) Self employed b) Govt. Employee c) Non Govt. employee
e) Student f) Others
Monthly Income: a) 5000-15000 b) 15,001-30,000 c) 30,001- 45000 d) 45000 <

1. Favorite soft-drink?
b) Coca cola b) Pepsi c) others

If Coke which brand
b) Thumps-up b) Sprite c) Coca-Cola d) Maaza e) Limca
f) Fanta
If Pepsi which brand
b) Dew b) 7-up c) Pepsi d) Slice e) Mirinda (lemon)
f) Mirinda (orange)

If Pepsi, Have you ever tried coke product YES / NO
i. If Yes, then what made you change over from Coke to
Pepsi
b) Taste b) Flavor c) Celebrity
e) Advertisement e) Brand loyalty f) Availability
ii. If No, Any specific reason for not trying Coke product?
a) Taste b) Non-Availability c) Brand loyalty with
Pepsi
d) Favorite celebrity endorsing Pepsi e) Bad publicity

78

2. Which size you prefer more
a) 200ml b) 300ml c) Pet bottle (500ml)
d) Pet bottle (2L) e) Can

3. Do you think rate of 300ml bottle which is available at Rs.12 is worth it?
a) Yes b) No

4. Which will you prefer more
a) 300 ml for Rs12 b) 200 ml for Rs10

5. Do you find the display attractive of
a) Coke b) Pepsi c) Same

6. Source of supply of soft drink

a) Grocery store b) Confectioneries c) Eating & drinking d)
others


7. Have you ever experience that, you asked for the coke product and
vendor supplied you with Pepsi product

a) Yes b) No

ii. If yes, did you buy that Pepsi product

b) Yes b) No


8. Choose ONE you like most out of given TWO:






a) Thumps-up b) Mountain dew a) Coca-Cola b) Pepsi
a) Sprite b) 7-up a) Limca b) Mirinda (Lemon)
a) Fanta b) Mirinda (orange) a) Maaza b) Slice

79

Questionnaire for Retailers

1.) OUTLET NAME:
SECTOR:
TYPE OF SHOP:
b) Grocery c) E&D 1
c) Convenience d) E&D 2

2.) Which package sells more:
300ML
PET

3.) Which 300ml RGB brand you are more satisfied to sell?
a) Pepsi
b) Coca cola
c) Same

If PEPSI, why?
More margin/schemes than coke
Brand loyalty
Services
Supply

4.) Reaction towards 300ml RGB, are you happy to sell?
Satisfied
Mix response
Not satisfied

a) If Not satisfied, what problems you are facing?
Margin is less then Pet bottles
Breakage problem
Space problem
Change
Sometime you need stock but due to empty cant buy it

5.) Do you think 300ML RGB should be replaced with 300ML Pet bottle?
Yes
No

6.) Do you think rate of 300ml bottle which is available at Rs.12 is worth it?
b) Yes b) No