INDEX

Contents
Chapter 1 :

Chapter 2 :
Chapter 3 :
Chapter 4 :
Chapter 5 :
Chapter 6 :

Annexure

Page No.

Introduction

Objectives of the study

Need for the study

Methodology of the study

Limitations of the study

Industry Profile
Company Profile
Theoretical Frame Work
Data Analysis and Interpretation
Findings

9
10
21
32
49
59

Suggestions

60

Conclusion
Questionnaire

61
62

Bibliography

64

Clippings

CHAPTER-1
INTRODUCTION

1.1THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)
are products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products. The Indian FMCG industry
witnessed significant changes through the 1990s. Many players had been facing severe problems on
2

account of increased competition from small and regional players and from slow growth across its
various product categories. As a result, most of the companies were forced to revamp their product,
marketing, distribution and customer service strategies to strengthen their position in the market.By
the turn of the 20th century, the face of the Indian FMCG industry hadchanged significantly. With
the liberalization and growth of the Indianeconomy, the Indian customer witnessed an increasing
exposure to newdomestic and foreign products through different media, such as televisionand the
Internet. Apart from this, social changes such as increase in thenumber of nuclear families and the
growing number of working couplesresulting in increased spending power also contributed to the
increase in theIndian consumers' personal consumption. The realization of the customer'sgrowing
awareness and the need to meet changing requirements andpreferences on account of changing
lifestyles required the FMCG producingcompanies to formulate customer-centric strategies. These
changes had apositive impact, leading to the rapid growth in the FMCG industry. Increased
availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of
the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution
and service formats. The FMCG sector also received a boost by government led initiatives in the
2003 budget such as the setting up of excise free zones in various parts of the country that
witnessed firms moving away from outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell
in large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs
every time the economy starts to dip. A person may put off buying a car but he will not put off
having his dinner.Unlike other economy sectors, FMCG share float in a steady mannerirrespective
of global market dip, because they generally satisfy ratherfundamental, as opposed to luxurious
needs.

1.2BEVERAGE INDUSTRY IN INDIA

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.

Figure 1.2 classifications of beverages

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages.

Natural and Synthetic beverages.
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
Segmentation based on the amount of consumption i.e. high levels of consumption and

low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages
have to be consumed occasionally. These two perceptions are the biggest challenges faced by the
beverage industry. In order to leverage the beverage industry, it is important to address this issue
so as to encourage regular consumption as well as and to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry in
India are:

The quality and the consistency of beverages needs to be enhanced so that consumers are

satisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling that
the consumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in

terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant

to the category.
Communication should be relevant and trendy so that consumers are able to find an appeal
to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and
sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.

OBJECTIVES OF THE STUDY

The main objective of the RED project is to increase the sales of the company.
To advertise the various Products of the company.
To find out the present status about the availability of ThumsUp, Coke, Sprite, Limca,
Fanta, Maaza at the retail outlets in the area.
To find out available opportunities in the market by finding gaps in competitors penetration.
To collect data from retailers for the activation of new channels
To find out ways to push sale in different outlets of a particular area.
5

 To understand the criteria of selection of distributors in Hindustan Coca Cola Beverages

Pvt. Limited.
To study the presale concept of the Coke.
To enhance the market share of the company.

NEED OF THE STUDY

The present study is conducted considering the following aspects. Firstly Visakhapatnam is
a perspective of soft drink marketing in the country, which is highly promising with a lot of
potential, which is to be tapped. Secondly, the behaviour of the target consumers are highly vibrant
showing the past movement in this life that is also market drive. The marketing has accompanied to
representation, both formal and informal marketing. Having considered one by one of both
consumer and retailer in present day market an attempt was made to study the perception of both
consumers and retailers on the channels of distribution of Coca-Cola brands in general and market
share of coke in Visakhapatnam.

Soft drink industry has got a special place in marketing consumer product. World
over, the market rivalry between international giants like Coke and Pepsi are widely known as cold
wars.
Indian soft drink industry is dominated few players like Parle drinks etc... That with
the liberalization in 1990s in the Indian Economy, the competitors in this industry have increased
tremendously and the end consumer had got the wide range of chief choices among.
It is the time to take the steps to improve the market share of the Coke products.
Hence focus had laid on its marketing functions like channels of distribution.

METHODOLOGY
The methodology used to analyse the project is mainly based on survey method and this survey was
conducted through Questionnaires and it also include direct contact with grocery retailer,
convenience store, eating and drinking and consumer. For survey sample size was taken from
different location of Visakhapatnam and it was covered with the help of market developer and key
account manager.The sample collected from two hundred fifty outlet of each Grocery, Convenience
and Eating & Drinking.
Design:
7

A research design is purely and simply the work or plan for a study that guides the collection and
analysis of the data.A research design is the specification of methods and procedures for acquiring
the needed information. It is overall operational pattern or framework of the project that stipulates
what information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:

Exploratory Research.
Descriptive Research.
Casual Research.

1. Exploratory Research:-The objective of exploratory research is to gather preliminary

information that will help define problems and suggest hypothesis.
2. Descriptive Research:-The objective of descriptive research is to describe things, such
as the market potential for a product or the demographics and attitudes of consumers who
buy the product.

3. Casual Research:-The objective of casual research is to test hypothesis about casual and
effect relationships.
Based on the above definitions it can be established that this study is a Descriptive Research as the
attitudes of the customers who buy the products have been stated. Through this study we are trying
to analyse the various factors that may be responsible for the preference of Coca-Cola products.

Sampling:
Sampling studies are becoming more and more popular in all types of mass study. The result of
sampling has attained a sufficiently high standard accuracy
Sample Design: Non random sampling
Size of sample: 200
Sources Of Data Collection
The data are collected from primary and secondary sources.
Primary Sources
Gather information through Questionnaire.
Direct interview with Grocery outlet, Convenience store, Eating and drinking and consumer.
8

Secondary Sources

www.Coca-Cola.com,
www.wikipedia.com,
www.coca-colaindia.com
Activation booklet of the coca-cola.
RED tracker of the market developer.
Magazines - Business World, Management and Technology

SCOPE OF THE STUDY

This study helps company in knowing its growth in the Market. This study helps the
company to know what their actual position in the Market Vis--Vis their competitor.

 RED helps to find out the promotional activities of the company and help to make relevant
changes according to their competitor.
This study ensures the availability of the product in the market
The study also helps in the evaluation of the Market Developer performance.
RED helps to maintain the outlets in a well-designed way to attract the consumers.
RED helps in maintaining the attractiveness of their sales generating asset i.e. their
visicooler.
RED helps in Visual merchandising.

LIMITATIONS
Although all efforts have been taken to make the results of survey as accurate as possible but the
survey suffers from the following limitations:

10

 The time period of study was only for two month so it was not possible to cover all the areas
and go into the depth of the problem and make analysis.
The area of survey was Visakhapatnam district and it was concentrated on urban area only.
The psychological condition varies from place to place because in many places outlet owner
was not supportive.
Some respondents left some of the questions unanswered either due to inability to put a
strain on mind or they did not know the answer.

11

CHAPTER-2
INDUSTRY PROFILE

INDUSTRY PROFILE
THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)
are products that have a quick turnover and relatively low cost. Consumers generally put less
12

thought into the purchase of FMCG than they do for other products. The Indian FMCG industry
witnessed significant changes through the 1990s. Many players had been facing severe problems on
account of increased competition from small and regional players and from slow growth across its
various product categories. As a result, most of the companies were forced to revamp their product,
marketing, distribution and customer service strategies to strengthen their position in the market.By
the turn of the 20th century, the face of the Indian FMCG industry hadchanged significantly. With
the liberalization and growth of the Indianeconomy, the Indian customer witnessed an increasing
exposure to newdomestic and foreign products through different media, such as televisionand the
Internet. Apart from this, social changes such as increase in thenumber of nuclear families and the
growing number of working couplesresulting in increased spending power also contributed to the
increase in theIndian consumers' personal consumption. The realization of the customer'sgrowing
awareness and the need to meet changing requirements andpreferences on account of changing
lifestyles required the FMCG producingcompanies to formulate customer-centric strategies. These
changes had apositive impact, leading to the rapid growth in the FMCG industry. Increased
availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of
the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution
and service formats. The FMCG sector also received a boost by government led initiatives in the
2003 budget such as the setting up of excise free zones in various parts of the country that
witnessed firms moving away from outsourcing to manufacturing by investing in the zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell
in large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs
every time the economy starts to dip. A person may put off buying a car but he will not put off
having his dinner.Unlike other economy sectors, FMCG share float in a steady mannerirrespective

13

of global market dip, because they generally satisfy ratherfundamental, as opposed to luxurious
needs.

BEVERAGE INDUSTRY IN INDIA

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 beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages.

Natural and Synthetic beverages.
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
Segmentation based on the amount of consumption i.e. high levels of consumption and

low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages
have to be consumed occasionally. These two perceptions are the biggest challenges faced by the
beverage industry. In order to leverage the beverage industry, it is important to address this issue
so as to encourage regular consumption as well as and to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry in
India are:
14

The quality and the consistency of beverages needs to be enhanced so that consumers are

satisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling that

the consumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant

to the category.
Communication should be relevant and trendy so that consumers are able to find an appeal
to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and
sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.

Background:
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks.
Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and
oranges are carbonated drinks while mango drinks come under non-carbonated category. The soft
drinks market till early 1990 were in the hands of domestic players like Campa, Thumps Up, Limca
etc., but with the opening of the economy and liberalization of economic policies, many foreign
multinationals started ventures in India by buying over competitors. Soft drinks are available in
glass bottles, aluminium cans and pet bottles for home consumption. Fountains also dispense them
in disposable containers.
The two American cola giant have cleared up the arena and are backing all their
power behind the Indian franchise of their globe girdling brands. While Pepsi which scores over
Coke but this difference is fast decreasing. Pepsi entered into the Indian market in 1991 and Coke
re-entered (after they were thrown out in 1977, by the Central Government) in 1993.

Market Characteristics;
The soft drink market is highly skewed in terms of place of consumption, regional
distribution and soft drink flavours. While 80% of the consumption is impulse based outside home,
20% comes from consumption at home. This trend is slowly changing with increase in occasion led
15

sales. Changing lifestyle, increasing urbanization and impact of liberalization has slowly and
gradually stared moving the market from impulse led to occasion led home refrigeration led
consumption.
The market preference is highly regional base. While Cola drinks have main markets in
metro cities and northern states like UP, Punjab, Haryana, etc. Orange flavoured drinks are popular
in Southern states. Sodas too are sold largely in southern states decides sale through bars. Western
markets have preference towards mango-flavoured drinks. Diet Coke presently constitutes just
0.7% of the total carbonated beverage market.

Soft Drink sector in India:

The Coca-Cola Company is one of the largest manufacturers, distributors and marketers of
non-alcoholic beverage concentrates and syrups in the world. The company is best known for its
flagship product Coca-Cola, invented by pharmacist John Smith Pemberton in 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 due to the belief that carbonated water was good for the health. Pemberton is the
first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. For the first
eight months only nine drinks were sold each day.
The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated the
Coca-Cola Company in 1892. Besides its name sake Coca-Cola beverage, Coca-Cola currently
offers nearly 400 brands in over 200 countries or territory.

Products and Brands:

Diet Coke was introduced in 1982 to offer and alternative to dieters worried about the high
number of calories present in regular Coca-Cola. The Coca-Cola Company has, on occasion,
introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke,
which has become a major diet cola. However, others exist, including Diet Coke Caffeine-Free,
Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon and with lime and
even with coffee.
Diet Coke (1982)
Cherry Coke (1985)
Diet Cherry Coke (1986)

16

Coke with Lemon (2001)

Diet Coke with Lemon (2001)
Vanilla Coke (2002)
Diet Vanilla Coke (2002)
Coca-Cola C2 (2004)
Coke with Lime (2004)
Diet Coke with Lime (2004)
Diet Coke Sweetened with splendid (2005)
Coca-Cola Zero (2005)
Coca-Cola Black Cherry Vanilla (2006)
Diet Coca-Cola Black Cherry Vanilla (2006)
Coca-Cola Black (2006)
Diet Coke Plus (2007)
Coca-Cola Orange (2007)
The Coca-Cola Company also produces a number of other soft drinks including Fanta
(introduced around 1942 or 1943) and Sprite.
During the 1990s, the company responded to the growing consumer interest in healthy
beverages by introducing several new non-carbonated beverage brands. These included Minute
Main Juices, sports beverage, flavoured tea Nestea (in a joint venture with Nestle), Fruitopia fruit
drink and Dasani water, among others. In 2001, Minute Maid division launched the Simply Orange
brand of juices including orange juice.
Coca-Cola is the best-selling soft drink in most countries. While the Middle East is one of
the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola
nonetheless holds almost 25% market share (to Pepsis 75%) and had double-digit growth in 2003.
Some claim Coke is less popular in India due to suspicions regarding the health standards of the
drink. However, market share data does not back this view. Specifically, in 2005, Coca-Cola Indias
market share was 60.9%. However, ThumsUp, a brand acquired by The Coca-Cola Company,
contributes a major part of this market share rather than Coke.

17

In regard to environmental issues in India, there has been a controversy over pesticides
possibly showing up in the product, as well as the companys over use of local water supplies in
some locations.

18

CHAPTER-3
COMPANY PROFILE

COMPANY PROFILE
Hindustan Coca-Cola Beverages Pvt. Ltd., Visakhapatnam is a corporate branch of the
Coca-Cola Company registered in North Atlanta, North America. The basic unit is divided into five
zones all together.
They are:
North America

19

Africa
Latin America
Europe
Eurasia
Middle East Asia
The present Hyderabad unit is under Asia zone of the division of India. In India there are
around 55 units (plants) and in Andhra Pradesh & Telangana there are 5 plants namely
Visakhapatnam
Vijayawada
Nellore
Sri Kalahasthi
Hyderabad
It all the started in the year 1967 It was started as a small unit in the industrial estate with as
many as of employees. As the day went by the same plant was made into big plant with the help of
Government and it was called as Ameenpur bottling Company. All this as further improved with
the help of the taking of the task of becoming the sole franchise of the Parle products. Then it came
to be called as the Gold Spot Company. They were manufacturing all products of the Parle. The
deal was struck and it was acquired by the Coca Cola in the year 1992.
From then on it became a sole authority to the property of the VBC and since then it was
operating as a fully owned company. This plant operates with around 200 permanent employees and
100 labourers. The plant is located at the picturesque location of Manchu Konda gardens and it runs
to around 20 acres of land. The plant lay out is given below which depicts the extent of care taken
by the management.

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. It sells beverage concentrates and syrups to bottling and canning operators, distributors,
fountain retailers and fountain wholesalers. Coca Cola was first introduced by John Styth
Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored
syrup in a three-legged brass kettle in his backyard. He first distributed the product by carrying it
in a jug down the street to Jacobs Pharmacy and customers bought the drink for five cents at the
soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise,
producing a drink that was proclaimed delicious and refreshing, a theme that continues to echo
20

today wherever Coca-Cola is enjoyed. 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.
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. In
the new liberalized and deregulated environment in 1993, Coca Cola made its re-entry into India
through its 100% owned subsidiary, Coca Cola India, the Indian bottling arm of the Coca-Cola
Company. Coca Cola today has a diverse product portfolio ranging from refreshing drinks to thirst
quenchers to energy drinks.
The company has also started penetrating rural markets as well with its innovative
refrigerator which runs without electricity. It is partnering with small shopkeepers in villages to
large retail outlets in cities thereby catering to wide and diverse customer segments. What lies
behind the success of Coca Cola Company Well successful companies have certain systems and
procedures around which companys marketing and operational strategies revolve, in Coca Colas
case it is RED which stands for Right Execution Daily. RED is a tool to measure sales team and
distributors performance in the outlets with respect to all parameters of execution. These
parameters are broadly classified as Visicooler Specification, Outlet activation & Brand packs and
order availability. RED audit is conducted by AC Nielson every month but Its Pre Sale
Representative responsibility to maintain RED parameters on a daily basis in his outlets and entire
market, since RED Standards are maintain on a daily basis it is referred as Right Execution Daily.
RED is in fact the power of Coca Cola system and this project is a humble effort in understanding
this concept and its execution in Visakhapatnam market.

MISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.

To refresh the world...

To inspire moments of optimism and happiness...
To create value and make a difference.

VISION:
21

Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and

satisfy people's desires and needs.

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

mutual, enduring value.

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

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

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

22

WINNINGCULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality.

LIVEOUR VALUES:
Our values serve as a compass for our actions and describe how we behave in the world.

Leadership: The courage to shape a better future.

Collaboration: Leverage collective genius.
Integrity: Be real.
Accountability: If it is to be, it's up to me.
Passion: Committed in heart and mind.
Diversity: As inclusive as our brands.
Quality: What we do, we do well.

WORK SMART:
Act with urgency.
Remain responsive to change.
Have the courage to change course when needed.
Remain constructively discontent.
Work efficiently.

23

ACT LIKE OWNERS:

Be accountable for our actions and inactions.
Steward system assets and focus on building value.
Reward our people for taking risks and finding better ways to solve problems.
Learn from our outcomes -- what worked and what didnt.

BE THE BRAND:
Inspire creativity, passion, optimism and fun.

HISTORY OF COCA-COLA
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 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.[9] 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 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
Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O.
24

Murphy, C.O. Mullahy and E.H. Blood worth. Meanwhile, Pemberton's alcoholic son 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 Coke. 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.
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. 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 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.
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
25

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.
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 sweetenersucralose
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. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B 6
B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus. 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.

GLOBAL MARKET SHARE OF COCA-COLA

Everyone has heard of Coca-Cola, and you would be hard pressed to find somebody who was
unable to recognize the iconic white lettering against the bright red background of this global
brand. Various sources cite Coca-Cola as a billion dollar brand and that is not surprising, when
one considers it was rated by Interbrain as one of the most valuable brands in 2014, based on a
brand

value

amounting

to

81.56

billion

U.S.

dollars.

The Coca-Cola Company is a global key player in the beverage industry. The firm comprises
the corporate division, headquartered in Atlanta, GA, and about 300 bottling partners
26

worldwide. According to its most recent annual report from 2014, Coca-Cola's net operating
revenue amounted to 46 billion U.S. dollars. Bringing in 46.7 percent of the global revenue in
2014 was the North America segment, making it the company's flagship market.
In the U.S., the Coca-Cola Company held a market share in the soft drink segment with 42.3
percent in 2014. The companys leading four brands in the U.S. market are Coca-Cola, Diet
Coke, Sprite, and Fanta. The Coca-Cola Classic brand itself, held a market share of 17.6
percent in the United States in 2014.

FINANCIAL STRENGTHS :
Coca-Cola being and MNC has a wide network and market for its products worldwide. The
finance to the company comes from the corporate office and financial institution abroad. The
units which have been setup in India are subsidiary concerns of the group. These units mobilize
their own funds and pay a Lampson amount to the corporate group for getting technology and
the product specification to be manufactured in the company, for which the formulation comes
from the office situated abroad.
As these units are franchisee units of the company, the owners of these companies, have to
perform individually in establishing the market and in the distribution of the products in the
areas specified.
These companies are generally situated in a economical processing zones (EPZs) Are
industrial units where by they get subsidies in various forms from the Govt. as well as financial
institution.
The unit under study has secured loans from the central Govt. and APEDA (Ministry of
Commerce) for setting up its unit at Hyderabad.

PLANT LAYOUT :
The layout of bottling plant installed by the company is confirmed to produce on line layout.
The machines and equipment are arranged according to the sequence of operations. The
27

machines and workers are specialized in the performance of specific operations such as
preparation of syrup filling the bottles, aerating and sealing the bottles with liquid. All those
operations are continuous movement.
Volume of production is adequate for reasonable equipment utilization.
Dem and for the production brands are reasonable stable.
All brands are standardized products.
Supply of material in continuous.
This type of layout is more advantageous when compared to other layout.

Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close
down its operation by a socialist government in the drive for self sufficiency. After 16 years of
absence, coca cola returned to India and witnessed a different culture and economic platform.
During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along
with, they also formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA.
In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main
competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be
28

able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start
helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola)
to return to India. Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the American way of life, which turned out to be a
mistake.
Coca-Cola invested heavily in India for the first five years, which got them credit of being one
of the biggest investor in the country; however, their sales figures were not so impressive.
Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever
that reducing their will result in more turnover, hence leading to profit. They launched an
extensive market research in India. They ascertained that in India 3 As must be applied;
Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with
local drinks such as NimbuPani, NarialPani, Lassi etc. and reached to a conclusion that
competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.

Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products. In
various regions they tried portraying coca cola products with different regional food products.
One of the most famous ad campaigns in India was ThandaMatlab Coca-Cola; they featured
the same quote with different regional entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water
Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a
competitive pricing policy, they have regained their throne.With virtually all the goods and
services required to produce and market Coca-Cola being made in India, the business system of
the Company directly employs approximately 6,000 people, and indirectly creates employment
for more than 125,000 people in related industries through its vast procurement, supply, and
distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers

29

manufactures a range of products for the Company.

On the distribution front, 10-tonne trucks open bay three-wheelers that can navigate the
narrow alleyways of Indian cities constantly keep our brands available in every nook and
corner of the Countrys remotest areas.

PRODUCTS OF COCA-COLA INDIA

COCA-COLA:In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments
to ensure that the beverage is available to more and more people, even in remote and
inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India Cricket, movies, music & food. Coca-Colas advertising campaigns Jo
ChahoHoJaye&Life HoTohAise were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign ThandaMatlab Coca-Cola which sky
rocketed the brand to make it Indias favourite soft drink brand.

30

PET

GLASS
200ml,

300ml, 500ml,

500ml, 1000ml

1.5L,

2L,

CAN

FOUNTAIN

330 ml

VARIOUS SIZES

2.25L, 500ml, 100ml

Table : Coca-Cola different packs and sizes

LIMCA:Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni
bite combined with the single minded proposition of the brand as the provider of
Freshness.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu + Jaise
hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original
thirst choice of millions of customers for over 3 decades.

PET

GLASS
200ml,

300ml, 500ml,

500ml, 1000ml

1.5L,

2L,

CAN

FOUNTAIN

330 ml

VARIOUS SIZES

2.25L, 500ml, 100ml

Table : Limca different packs and sizes

THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is
known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This
brand clearly seeks to separate the men from the boys.

31

PET

GLASS
200ml,

300ml, 500ml,

500ml, 1000ml

1.5L,

2L,

CAN

FOUNTAIN

330 ml

VARIOUS SIZES

2.25L, 500ml, 100ml

Table : ThumsUp different packs and sizes

SPRITE:Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand
in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen
icon.

PET

RGB
200ml, 300ml

500ml,

600ml,

1250ml,

1500ml,

CAN

FOUNTAIN

330 ml

VARIOUS SIZES

2000ml, 2250ml
Table : Sprite different packs and sizes

FANTA:Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as The Fun Catalyst. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, 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.

32

GLASS
200ml, 300ml

PET

500ml,

1.5L,

2L,

CAN

FOUNTAIN

330 ml

VARIOUS SIZES

2.25L, 500ml, 100ml

Table : Fanta different packs and sizes

MINUTE MAID PULPY ORANGE:The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that eliminated
80% of the water in the orange juice, forming a frozen concentrate that when reconstitute
created orange juice. They branded it Minute Maid a name connoting the convenience and the
ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever
orange juice from concentrate. The launch of Minute Maid in India (started with the south of
the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink
category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA:Maaza was introduced in late 1970s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is
the mango lovers first choice.

RGB
200ml, 250ml

PET

POCKET MAAZA

250ml, 600ml, 1.2L

Table : Maaza different packs and sizes

33

200ml

KINLEY: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 a part of everyday ritual or as the monsoon
which gives life to the sub continent. Kinley water comes with the assurance of safety from the
Coca-Cola Company.
Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is
available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major
metros in India.

HOT BEVERAGES

Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino,

Hot Chocolate, Cardamon Tea.

COLD BEVERAGES

Ice Teas, Cold Coffee.

Table : Georgia different products

MARKETING MIX OF COCA-COLA INDIA:

34

 PRODUCT:Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where
Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was aRs
1,000 cr industry and growing by 40% every year. PDW was a low margin high volume
business, but it was an attractive proposition for bottlers as it increased plant utilization rates.
In this market Cokes Kinley was pitched against Ramesh Chauhans Bisleri and Pepsis
Aquafina. The product not only faced intense competition but also was difficult to differentiate.
Coke positioned Kinley as natural water with the tag line BhoondBhoond Mein Vishwas
(Trust in each drop of water).In early 1999, the parent company acquired Cadbury Schweppes.
As a result 12 more bottlers were brought into CCIs fold. This acquisition added Crush,
Canada Dry and Sport Cola to CCIs product line. This meant CCI had three orange, clear lime
and cola drinks each in its portfolio.

PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like
India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond
the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in coastal
Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30%
demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5 was
rolled out countrywide in January 2003. The advertising Campaign highlighted the
affordability and Indian image.To make it affordable, Coke introduced Kinley in 200ml
pouches for Re. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra,
priced at Rs 3 per cup in testing marketing exercise conducted in mid 2002. In 2002 Kinley
with 35% market share had become the leader in the retail PDW segment and was contributing
20% of CCIs revenues.

35

 PLACE:Coke pushed down responsibilities from corporate headquarters to the local business units. The
aim was to effectively align CCI's corporate resources, support systems and culture to leverage
the local capabilities. CCI's operations had been divided into North, Central and Southern
regions. Each region had a president at the top, with divisions comprising marketing, finance,
human resources and bottling operations. The heads of the divisions reported to the CEO.
Bottling operations were divided into four companies directed by the bottling head from
headquarters. Under the new plan, CCI shifted to a six region profit center set up where
product customization and packaging, marketing and brand building were taken up locally. A
Regional General Manager (RGM) headed each region with the regional functional heads
reporting to him. All the RGMs reported to VP (Operations, who in turn reported to CEO. The
four bottling operations, with 37 bottling plants, were merged into Hindustan Coca-Cola
Beverages (HCCB). Each of the six regions had on an average six bottling plants. Each plant
was headed by an Area General Manager (AGM) and held profit center responsibility for a
business territory. He reported to the RGM as well as the head of bottling at the head quarters.

PROMOTION:In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible.
The overall marketing effort was also not focused as CCI changed the head of marketing three
times during the period. Thumps Up remained neglected. Inadequate marketing support for
other Parle brands also led to their declining market shares.The bottlers taken over by Coke
also had problems adjusting to a new work culture. They argued that CCI's lack of interest in
promoting Thumps Up was resulting in falling sales and asked CCI to take corrective action.
Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen
by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well
known personalities popular to this age group. During 90'ies Coke's promotion efforts did not
seem to be effective. They were focused on mega events like the 1996 Cricket World Cup held
in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official
36

about it" campaign. Major analysts were surprised that Thumps Up was totally out of the
picture during such a mega event. In 1998 localization of marketing efforts, CCI signed up
celebrities like Aamir Khan, AishwaryaRai, and Sunil Gavaskar to promote Coke. Coke also
began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was
declared the fastest growing market within the Coca-Cola system. But things were far from
normal. Attempts at building growth through discounts and PET take home segment were not
very successful because of lack of coordination between the launches and marketing back-up.
To maintain good relationships with bottlers and avoid defections to the other camp, dealers
had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments
in India, amounting to $400 Mn. The revised value of CCI's assets after the charge was $300
million. CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it
had become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a
juice brand and saw a growth of almost 30% in 2001. Since India was a large country of
different tastes and cultures, CCI customized its marketing strategy for different regions. It
promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta in
Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra. Now
it has come up with many advertising plans for different sectors of people.
ss

2.7 SWOT ANALYSIS

37

1. STRENGTHS:

DISTRIBUTION NETWORK: The Company has a strong distribution network consisting

of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The
distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay
three wheelers that can navigate through narrow alleyways of Indian cities and trademarked
tricycles.

STRONG BRANDS: The Coca-Cola has been named the world's top brand for a fourth
consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola
brand was worth $70.45billion. People all over the world enjoy coca cola products more
than 1.3 billion times per day.

COST OF OPERATIONS: The production, marketing and distribution systems are very
efficient due to forward planning and maintenance of consistency of operations, which
minimizes wastage of both time and resources, leads to lowering of costs.

2. WEAKNESSES:

38

LOW EXPORT LEVELS: The brands produced by the company are brands produced
worldwide thereby making the export levels very low. In India, there exists a major
controversy concerning pesticides and other harmful chemicals in bottled products including
Coca-Cola .Therefore, people abroad, are apprehensive about Coca-Cola products from
India.

SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND

ACHIEVE ECONOMIES OF SCALE:The Companys operations are carried out on a
small scale and due to Government restrictions and red-tapism, the Company finds it very
difficult to invest in technological advancements and achieve economies of scale.

3. OPPORTUNITIES:

LARGE DOMESTIC MARKETS: Coca-Cola India claims a 60.1 per cent share of the
soft drinks market; this includes a 42 per cent share of the cola market. Other products
account for 18.1 per cent market share, chiefly led by Limca.

EXPORT POTENTIAL: The Company can come up with new products, which are not
manufactured abroad, like Maaza etc and export them to foreign nations. It can come up
with strategies to eliminate apprehension from the minds of the people towards the Coke
products produced in India.

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an

increase in the per capita income thereby causing an increase in disposable income. The
beverage industry can take advantage of such a situation and enhance their sales.

4. THREATS:
39

IMPORTS: As India is developing at a fast pace, the per capita income has increased over
the years .If consumers shift onto imported beverages rather than have beverages
manufactured within the country, it could pose a threat to the Indian beverage industry as a
whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a

variety of regulations at each stage on the consequence from production to consumption.
Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND: Low per capita disposable income, large number
of daily wage earners, poor roads; power problems; and inaccessibility to conventional
advertising media. All these problems might lead to a slowdown in the demand for the
companys products.

CHANGING OF CONSUMERS PREFERENCE: The Company should keep a eye on

the changing preferences of the consumers.

2.8 COMPETITORS OF HCCBPL:

40

The competitors to the products of the company mainly lie in the non-alcoholic beverage
industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:

PEPSICO:The PepsiCo Challenge, to keep up with archival, the company never ends for
the worlds second position, carbonated soft-drink maker. The companys soft drinks include
Pepsi, Mountain Dew and Slice. Cola is not the companys only beverage, PepsiCo sell
Tropicana juice brands, Gatorade sports drink and Aquafina water.
PepsiCo also sells Dole juices and Lipton ready to drink tea. PepsiCo and Coca-Cola hold
together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest held
by competitors.

NESTLE: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, baby foods and chocolates. But the iced tea that is Nestea which has
been introduced into the market by Nestle provides a considerable amount of competition to
the products of the company. Iced tea is one of the closed substitutes to the cola as it is a
thirst quencher and it is healthier when compared to fizz drinks. The flavoured milk
products also have become substitutes to the products of the company due to growing health
awareness among people.

DABUR: Dabur in India, one of the most trusted brands as it has been operation ever since
times and people have laid all their trust in the company and the products of the company.
Apart from food products, Dabur has introduced into the market Real Juice which is
packaged fresh fruit juice. These products give a strong competition to Maaza and the latest
product Minute maid pulpy orange.

41

CHAPTER-4
THEORETICAL
FRAMEWORK

THEORETICAL FRAMEWORK
RED (Right Execution Daily) is a tool to measure sales team and Distributors Performance in the
outlet with respect to all the parameters of execution.RED lays down standard for Visi-coolers,
Brand norms and in outlet activation elements.It lays down specific norms and elements for
enhanced in-outlet Brand execution.It tracks Brand and Brand pack penetration in outlets.It allows
42

for Development of short, mid and long term execution strategies, tactics and action plan.Due to
audit characteristic Of RED each Brand can be measured against its specific execution goals can be
precisely monitored.

Figure 3.1 Right Execution Daily classification

1. Types Of Outlet (Channel)

(A) Grocery Store
Grocery Store stocking a variety of regular uses household items. The channels provide an
opportunity for penetration as it propels home consumption It includes all kirana stores, juice stall,
cold drink stall, departmental stores, supermarkets, provision stores etc. Necessary
Availability - 2 liter and 300ml.

(B) Eating & Drinking Channel 1

Eating and Drinking Channel: Outlets range from the high-end restaurants to the smaller dhabas.
These outlets offer multiple Opportunity to effect sales as people usually order something to drink
along with food. It includes-:
- Restaurants
- Bars and Pubs
43

- Dhabas
- Sweet shops
- Quick service restaurants
(C) Eating & Drinking Channel 2
It includes minimum 5 set table & chair outlets where people can sit while dining.
(D) Convenience Channel
Pan/beedi shops: This segment includes Pan/beedi outlets that stock cigarettes, mint, and
confectionary. It covers STD/ISD phone booths, travel channel etc. Small outlets that mainly sell
200ml or 300ml bottles. They may also sell 600ml mobile PET.
INCOME GROUP
According to the income group of the people living in a particular area
-Low income
-Medium income
-High income
Based on Volume Pattern, According to the volume sale in the outlets the company has adopted a
unique policy of categorizing the outlets in four different segments such as:
-DIAMOND
-GOLD
-SILVER
-BRONZE
DIAMOND-Those outlets in which the annual sale of Coca Cola products are more than 800 crates.
GOLD-Those outlets in which the annual sale of Coca Cola products are less than 200 crates.
SILVER-Those outlets which give an annual sale of Coca Cola products between 200 to 499 crates.
BRONZE-Those outlets in which annual sale of Coca Cola products are less than 200 crates.

3.2 RED PARAMETERS OF EXECUTION

44

R
EE
D

OO
O
P

A
RR
A
M
E
T
E
R
S

E
R

SS

I
C

A
I

O
N

Figure 3.2 Right Execution Daily parameters classifications

VISICOOLER SPECIFICATIONS
Visicooler is SGA (sales generating asset) for both Coca Cola company and its customers which
comprises of Shopkeepers, General merchants, Malls, Bakeries, Convenience stores,etc. Through
which the product reaches to end consumer therefore it becomes very important to maintain the
cleanliness and purity standard of visicooler. RED stipulates that the following conditions should be
fulfilled with regards to visicooler

Visicooler should be in working condition.

It should be placed in prime location in the shop/outlet so that it is visible to each and
every customer.
It should be clean and pure from Non coca cola products.
It should follow rack and brand order compliance
i.e.
COLOJ-K (colas, lemon, orange, juice, Kinley water & soda).

ACTIVATION ELEMENTS
Activation elements refer to those visual elements which activate the need of particular product in
the consumers mind. These tools include glow signs standees, flanges, Menu boards for combo
offers etc. Given to outlets by the company for effective sales promotion and triggering impulse
sales. Market developer/Pre Sales representatives must ensure that all these activation elements
must available at all the outlets.
Details of activation elements-:
Activation elements for Grocery Stores:
1. Warm Display Rack
2. Shelf Display
Optional Elements-:
1. Standee
45

2. Flange
3. Six Mobile Hanger
4. Visi Cooler Brand Strip
Activation Elements for E&D:1. Combo Standee
2. Flange or Standee
3. Branded Table Mat
4. Menu Board or Menu Card
Optional Elements-:
1. Warm Display Rack
2. Table Top Rack
3. Tent Card
Activation Elements for Convenience:1. Warm Display Rack or 1 Tier Rack
2. Flange or Standee
3. Aerial Mobile Hanger
Optional Elements:1. Table Top Display
2. Visicooler Brand Strip

Price List/Price Communication

Activation is not complete until price list is not stuck on visicooler.Price communication is essential
for complete activation of a particular outlet. Price list should be complete and clear for easy
understanding of prospective consumer.

46

Availability Brand Packs and Order

All the brands should be present in the every distribution channel but main concern is that 300 ml &
200ml should be present in the every channel and 600 ml and 1.5 litres per bottles should be present
in the Eating and. Drinking, convenience and Grocery shop. All the Brands should be available to
consumer on all the outlets as per RED segmentation in various packaging available.

Red Score Tracking

The performance of market developer is measured on the basis of score tracking.
Tracking will be done on the following Parameters:
1. Visicooler 20 points
2. Availability 70oints
3. Activation Elements 10 points.

N-1 purity:
N-1 purity refers to purity of the cooler in which retailers are allowed use one lower shelf of the
cooler for storing their items and the others for coke brands.
This includes brand order in the format of coke, Fanta, sprite, limca, thumsup, maaza, kinley.
In the order of ascending from 200 ml to 2.25 ml
As part of RED execution, I have visited retail shops and made sure that the outlet has n-1 pure
cooler and mark them based on the norms of red.
Below images show the norms of RED and the evaluation sheets are also given for daily evaluation.

3.3 RED TRACKER

47

Figure 3.3 RED tracker used for the collection of data

3.4 RED SCORE CARD

48

Figure 3.4 RED score card for the employee reference

49

Figure 3.4.1 Simplified RED score card

50

3.5 GREEN SCORE CARD

Figure 3.5 GREEN score card used for the employee reference

51

3.6 MARKETING PROCESS

Presale Concept
In this concept company takes order one day before and then delivers the product to each route. So
this gives more time to market developer to assure RED compliance.
This concept has following advantages

This gives more time to the market developer for the activation & branding purpose.
By this company can easily implement the RED concept in better way
Presale concept makes assure of more availability of the products in the market.
This concept is easy in processing By this concept market developer can arrange the product

in better way.
The Company can display its products in proper way so that customers can attract towards
it.
Permanent Journey Plan (PJP)/Route Card
The P.J.P. plan is a day wise schedule of a market Developer which contains the names of the
outlets to be visited by him coming under R.E.D. where it has to be implemented after getting
permanent journey plan the next step was to visit the outlets for gaining initial information of every
individual outlet as well as market on a whole. The visit to all the outlets of that area helped in
revealing its market condition. Visiting the outlets clearly showed the picture of the market situation
prevalent in market. This Route card has to be filled before visiting the market by each market
developer and Presale representative.
Daily Sales Report
In this report details of various outlet visited is entered by the pre-sale representative/ market
developer. It also helps in tracking market conditions of a particular area and performance of
particular market developer or pre sale representative.
Order Sheet
In this Order of various Brands and SKU`s required by the particular outlet as per the demand is
entered from where it goes into office records. A copy of this order sheet is given to depot manager
who then dispatches these demanded products in a delivery truck or trolley the very next day.

52

CHAPTER-5
DATA ANALYSIS &
INTERPRETATION

Table 1

1. Are you familiar with project RED?

a) Yes
b) No
53

S.No.
1.
2.

Opinion
Yes
No

No. Of respondents
62
38

Satisfaction Level
62%
38%

RED Awareness

38%

Familiar
62%

Unfamiliar

Interpretation:
Among the total outlets chosen for the study the RED awareness in people is they are 62% familiar
and 38% unfamiliar.

Table 2
2. Prime Position
a) Yes
S.No.
1.
2.

Opinion
Yes
No

b) No
No. Of respondents
72
28
54

Satisfaction Level
72%
28%

Prime Position

28%
Yes
No
72%

Interpretation:
Among the total outlets chosen for the study, the prime position from the coke 72%says yes and
28% says no.

Table 4

3. N-1 Purity
a) Yes
S.No.
1.

Opinion
Yes

b) No
No. Of respondents
62
55

Satisfaction Level
62%

2.

No

38

38%

N-1 Purity

38%

Yes
62%

No

Interpretation:
Among the total outlets chosen for the study, the n-1 purity from the coke 62%says yes and 38%
says no.

Table 5
4. Activation Elements
a) Yes
b) No
S.No.
1.
2.

Opinion
Yes
No

No. Of respondents
75
25

56

Satisfaction Level
75%
25%

Activation Elements

25%
Yes
No
75%

Interpretation:
Among the total outlets chosen for the study, the activation elements from the coke 75%says yes
and 25% says no.

Table 5

5. Do you agree that RED helps in Developing a better market by

developing an outlet?
a) Yes
b) No

S.No.
1.
2.

Opinion
Yes
No

No. Of respondents
80
20
57

Satisfaction Level
80%
20%

RED Performance
20%
Yes
No
80%

Interpretation:
Among the total outlets chosen for the study, the developing a better market by developing an outlet
80%says yes and 20% says no.

Table 6

6. What kind of expectations you have from the company/ distributors?

a) Schemes
b) Coupons
c) Cash discount
d) None
S.No.
1.
2.
3.
4.

Offers
Schemes
Coupons
Cash Discount
None

No. Of respondents
36
34
14
16
58

Satisfaction Level
36%
34%
14%
16%

Interpretation:
Among the total outlets chosen for the study, the expectations from the company ,the people says
36%by schemes, 34% by coupons, 14%by cash discount and 16% by none.

Table 7
7. Improvement in condition of cooler?
a) Yes
b) No
c) As it is

S.No.
1.
2.
3.

Opinion
Yes
No
As it is

No. Of respondents
80
9
11

Satisfaction Level
80%
9%
11%

Improvement of Cooler

11%
9%
Yes
No
As it is
80%

Interpretation:
59

Among the total outlets chosen for the study, the improvement in cooler condition by the company
they says that 80% yes, 9%no, and 11% As it is.

Table 8
8. Has the availability of the product increased?
a) Yes
b) No
c) As it is

S.No.
1.
2.
3.

Opinion
Yes
No
As it is

No. Of respondents
74
13
13

Satisfaction Level
74%
13%
13%

Increase in Availabilty of Stock

13%
13%

Yes
No
As it is
74%

Interpretation:
Among the total outlets chosen for the study, the availability of product by the company they says
that 74% yes, 13%no, and 13% As it is.
60

Table 9

9. Do you give importance to brand name while choosing your cold drink?
a) Yes
b) No
c) Cant say
S.No.
1.
2.
3.

Opinion
Yes
No
As it is

No. Of respondents
79
12
9

Satisfaction Level
79%
12%
9%

Selecting Soft Drink by Brand Name

9%
12%
Yes
No
As it is
79%

Interpretation:
Among the total outlets chosen for the study, the importance to select the brand name while
choosing the cold drink they says that 79% yes,12%no, and 9% As it is.

61

Table 10
10.Which brand you prefer most?
a) Coke
b) Pepsi
c) Both
S.No.
1.
2.
3.
4.

Brand
Coke
Pepsi
Both
Others

No. Of respondents
64
21
12
3

d) Others
Satisfaction Level
64%
21%
12%
3%

Brand Preference

12%

3%
Coke
Pepsi

21%
64%

Both
Others

Interpretation:
Among the total outlets chosen for the study, the brand name which prefer in the cold drink they
says that 64% coke, 21% Pepsi, 12% both, and 3% others .

Table 11
62

11.In your opinion which brand of cold drink is most demanded or popular?
a) Coke
b) Pepsi
c) Others
S.No.
1.
2.
3.

Brand
Coke
Pepsi
Others

No. Of respondents
72
22
6

Satisfaction Level
72%
22%
6%

Most Demanded Product

6%
22%
Coke
Pepsi
Others
72%

Interpretation:
Among the total outlets chosen for the study, the brand name which is most demanded or popular in
the cold drink they says that 72% coke, 22% Pepsi, and 6% others .

Table 12

63

12.What is the performance of the Preseller?

a) Poor
b) Good
c) Better
S.No.
1.
2.
3.
4.

Opinion
Poor
Good
Better
Best

No. Of respondents
4
70
19
7

d) Best
Satisfaction Level
4%
70%
19%
7%

Performance of Pre-Seller

7%

4%

19%

70%

Interpretation:
64

Among the total outlets chosen for the study, the performance from pre seller they says that 4%
poor,70% good, 19% better and 7% best .

CHAPTER-6
FINDINGS &
SUGGESTIONS

65

5.1 RED SCORE TRACK:

66

67

5.2 CRITERIAS FOR PRE SELLERS:

Figure 5.2 Pre- Sellers criteria for second quarter

Figure 5.3 RED and GREEN incentives for pre-sellers

68

5.5FINDINGS:
75% outlet from the sample of 100 outlets which have sufficient activation elements but
remaining 25% outlets are not fully activated.
In our study it is revealed that 67% from the selected outlet follow the Brand Order COLTJK, but remaining 33%are not following the brand order.
68% of visited outlet, visicooler are pure i.e. in visicooler only the product of Coca cola are
placed and 32% of outlets dont keep visi cooler pure.
72% of visi cooler are at prime position where consumer can see our product and choose as
per there need whereas 28% visicoolers are not in prime location.
82% outlets are convenience store, 11% are under the E&D and 7% are grocery shops.
12% are 9 caser, 10% are 10 caser, 20% are 15 caser, 27% are 20 caser and 31% are 30
caser.

The brand preference of the soft drinks which is an impulse product given a response of
64% of the consumers prefer coke and 21% prefer Pepsi and remaining prefer other
products.

The performance of the pre-seller is 7% are providing best service to the outlets, 19% are
better, 70% are good and 4% of the employees are providing poor service.
92% outlets dont have a sufficient number glass order demand i.e. they can create stock
pile according to the visi coolers provided to them and 8% are those outlets which have
sufficient number of GOD.

5.4SUGGESTIONS:

69

The suggestions made in this section are based on the market study conducted as part of CocaCola India. The suggestions are arranged in order of priority, highest first.
Perform a detail demand survey at regular interval to know about the unique needs and
requirements of the customer.
The company should make hindrance free arrangement for its customers/retailers to make
any feedback or suggestions as and when they feel.
Coca-Colas distribution channel is mostly through retail. Whereas the competitors also
concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try to
increase their distribution in these areas.
The company should be always in a position to receive continuous feedback and
suggestions from its customers/ consumers as well as from the market and try to solve it
without any delay to establish its own good credibility.
A strong watch should be kept on distributors so that the goodwill of the BRAND doesnt
get affected.
Company should also bother about the stock delivery and the delivery persons as in if they
are really following the companys norms.
Company should ensure creating faith in customers towards the company about solving the
issues without any delay or partiality.
It should keep a watch on its employees and consider the complaints of the customers in to
account.
Most of the complaints from the customers are regarding coolers and coupons which have
to be taken care.
Remote areas are also to be considered as the stock problem is arising there and
competitors are capturing the market.

5.7CONCLUSION:
Prime position of Visi-cooler outside the outlet plays an important role in the selection of
the soft drink by customer.

70

 Few activation elements like Table Top, Glow Shine Board, Hanger; Road Stand plays a
major role in increasing sale of the soft drink.
Supply of product as well as stock keeping unit is not up to the mark
Availability standard in outlet is not according to terms and conditions of the company.
There are number of unsatisfied red outlet with complains regarding product shortage.

71

QUESTIONNAIRE

Questionnaire
Outlet type:

Grocery

Convenience

Outlet Name:..........................................

E&D

Location:..........................

Address:..................................................................................................................
72

................................................................................................................................
1. Vlsi Cooler Size
a) 9vc
b) 10 Vc

c) 15Vc

d) 20Vc

e) 30Vc

2. Are you familiar with project RED?

a) Yes
b) No
3. Prime Position
b) Yes

b) No

4. N-1 Purity
a) Yes

b) No

5. Activation Elements
b) Yes

b) No

6. Do you agree that RED helps in Developing a better market by developing an

outlet?
b) Yes
b) No
7. What kind of expectations you have from the company/ distributors?
b) Schemes
b) Coupons
c) Cash discount
d) None
AFTER PROJECTED RED
8. Improvement in condition of cooler?
b) Yes
b) No

c) As it is

9. Has the availability of the product increased?

b) Yes
b) No
c) As it is
10. Do you give importance to brand name while choosing your cold drink?
b) Yes
b) No
c) Cant say
11. Which brand you prefer most?
b) Coke
b) Pepsi

c) Both

d) Others

12. In your opinion which brand of cold drink is most demanded or popular?
b) Coke
b) Pepsi
c) Others
13. What is the performance of the Preseller?
73

b) Poor

b) Good

c) Better

d) Best

14.Do you prefer to keep the warm stock into cooler immediately, even when there is no
stock in the cooler?
.........................................................................................................................................
.........................................................................................................................................
..............................................................................................................
15. Your comment on RED
.........................................................................................................................................
.........................................................................................................................................
..............................................................................................................
Thank You for your valuable time giving to us in filling this form.

74

BIBLIOGRAPHY

75

BIBLIOGRAPHY
BOOKS:
Marketing Management Kotler Philip.
Marketing- Paul Baines, Chris fill, Kelly page
Research Methodology Chawla.D

REFERENCES:
http://www.coca-colacompany.com/search?q=Right%20Execution%20Daily&fT=00000138-b42ad589-a1bf-bcaef3cd001e
http://www.coca-colaindia.com/press-center/coke-in-news/page/3/
http://www.hindustancoca-cola.com/vision_mission.aspx
http://www.hindustancoca-cola.com/How_we_execute.aspx
http://www.beverage-digest.com/editorial/datastats.html
http://www.coca-colacompany.com/our-company/the-coca-cola-system

76

LISTS OF TABLES
2.5.1 Coca-Cola different packs and sizes
2.5.2 Limca different packs and sizes
2.5.3 ThumsUp different packs and sizes
2.5.4 Sprite different packs and sizes
2.5.5 Fanta different packs and sizes
2.5.6 Maaza different packs and sizes
2.5.7 Georgia different products

14
15
15
15
16
17
17

LISTS OF FIGURES
1.2

Classification of Beverages

03

3.1

Right Execution Daily Classifications

26

3.2

Right Execution Daily parameters classification

28

3.3

RED tracker used for the collection of data

31

3.4

RED score card for the employee reference

32

3.4.1

Simplified RED score card

33

3.5

GREEN score card used for the employee reference

34

77

5.1

RED Score Track

42

5.2

Criteria for ESM/Pre-Seller

43

5.2.1

RED and GREEN Incentive

43

5.4.1

VisiCooler size distribution

45

5.4.2

RED awareness in the market

45

5.4.3

Prime position of VisiCooler at outlets

46

5.4.4

N-1 Purity of VisiCooler size

5.4.5

Activation Elements at retail outlets

46

5.4.6

RED performance developing the market

47

5.4.7

Expectations of outlets from the company

47

5.4.8

Improvement of VisiCooler after projecting RED concept

47

5.4.9

Availability of products after projecting RED Concept

48

46

5.4.10 Selection of soft drinks on the brand name

48

5.4.11 Brand preference of soft drinks

48

5.4.12 Most demanded product of soft drinks

49

5.4.13 Performance of pre-seller in the market

49

78