1.

INTRODUCTION
With the development of world and human being, the taste, need and the attitude of human being also changes. India is one of the common market in the world with a population of more than one billion. Soft drink is a popular common product which is generally purchased by consumers for quenching their thirst in summer and also to have cooling refreshment. As far as the market of soft drinks is concerned, it is facing cut throat competition from the larger number of soft drinks available in the market. Different brands are available in every segment of flavors, but the attitudes of the consumers differ from each other due to several factors. Every company tries to increase their market share and their sales volume. Discounting system followed by the companies proved to be an essential factor to boost up the purchases made by the retailers. The companies try to attract the retailers to purchase more by providing some schemes or incentives or cash/card discount. If more discount or any other incentive scheme is given to the outlets, they make purchases to avail that offer. Therefore, it is essential for any company to have an efficient and effective discounting system. Distribution is the spine of any FMCG company. The main function of a retailer is to bridge the gap between the supplier and the customer. The central focus of distribution is to increase the efficiency of time, place, and delivery utility. For any FMCG product it is essential to have a good distribution network which should be better than that of its competitors.

Distribution is the key area for any FMCG business. For a smooth distribution network, it is essential to keep the retail outlets satisfied which in turn mainly depend upon the profitability. Their profitability is checked by keeping a satisfied profit margin for them. Apart from that, the company also provides discount on purchase of different pack sizes to some HVOs which in turn increases their profit margin. Sometimes the company also provides incentives to the outlets which make frequent and high purchases. To meet stiff and challenging competition from some of the other brands, it is essential for the company to have an effective and efficient distribution network. Therefore, the company tries to keep the outlets satisfied by offering discounts and some other incentive schemes from time to time.

HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.

1.1 COMPANY PROFILE Coca-Cola (also known as Coke, a name that was trademar ked by The Coca-Cola Company after it was discovered many people called it by that particular name) is a very popular cola (a carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often referred to as simply Coca-Cola or Coke. Coke is one of the worlds most recognizable and widely sold commercial brands; its major rival is Pepsi. Coke was originally intended as a patent medicine when it was invented in the late 19th century, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Although faced with critiques of its health effects and various allegations of wrongdoing by the company, Coca-Cola has remained a popular soft drink to the present day 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 thanks to a belief that carbonated water was good for the health. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only

nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on March 12, 1894,

and cans of Coke first appeared in 1955. By 1888, three versions of Coca-Cola - sold by three separate businesses were on the market. On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned a launch of a Diet Coke product sweetened with the artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. The company actually produces concentrate for Coca-Cola, which is then sold to various 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 in cans and bottles to retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the single largest Coca-Cola bottler in North America and Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke brand name. The most famous of these is Diet Coke, which has become a major diet cola but others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns and

markets other soft drinks that do not carry the Coca-Cola branding, such as Sprite, Fanta, and others. The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers

Through out the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottlers are normally also responsible for all advertisement and other sales initiatives within their areas. Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. The products of the company reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by the Coca-Cola Company, their global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide. The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for their consumers.

The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977, an honor awarded very few packages. The most valuable assets happen to be the trademarks they possess.

For Coca-Cola, the most drunk soft drink on earth is one of the world s best-known and most admired trademarks, recognized by more than 90 percent of the world s population. Interestingly, the world that is touched by the cherished drinks for every moment, the Coca-Cola trademarks happen not only to be their most valuable assets but of the entire earth. The business system of the Company in India directly employs approximately 6,000 people, and indirectly creates employment for many more in related industries through our vast procurement, supply and distribution system. On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country. The term soft drink originally applied to carbonated drinks made from concentrates, although it now commonly refers to almost any cold drink that does not contain alcohol. Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US based Coca-cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan

Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of beverages across the country. Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations. It is the worlds largest selling soft drink since 1886. The Coca-cola Company returned to India in 1993 after a gap of 16 years giving a new thumbs up to the Indian Soft Drink Market and took over the ownership of the

nation's top soft-drink brands and bottling network. The vast Indian operations comprises 25 wholly company owned bottling operations and another 24 franchisee owned bottling operations and a network of 21 contract packers also manufactures a range of products for the Company.

1.2 MISSION OF HCCBPL: To refresh the world in mind, body & spirit. Being a global leader in beverages. To create a value in brands & difference every where we engage. To make a difference in our product. Our product in each hand. To inspire the moments of optimism through our brand and action To do every thing differs.

VISION OF HCCBPL:Profit People : Maximize the return of the shareholder. : Establish a great place to work where people are inspired to the best they can do. Portfolio : Bringing to the world a portfolio of beverage brand that anticipates and secure peoples desires & need. Partners Planet : Nurturing a winning network of partners & building a mutual loyality. : Being a responsible citizen that makes a difference.

1.5 SWOT ANALYSIS:Coca-Cola Company is one of the leading MNC in the world. It has made a remarkable growth since it origin and it has got a good potential in spite of various hurdles coming its way. By going through its SWOT analysis we can know much more about the company.

STRENGTH:
The company has got various strengths, which leads the company be a market leader. Some of the strengths listed below: A) Strong product line: The company has got various fast moving products which are going great job in the market. These soft drinks not only quench thirst but also refresh everyone it touches. One of the strong brands of the company is Thumps Up, which specially doing well in the Indian market. It has captured one of the major shares of the soft drink market. B.) Advertising: Advertising plays a major in promoting sales of the product. The company has got one of the best advertising strategies. Appointing film actors, as the brand ambassadors, makes a great impact on the mind of the customers. The company should try to launch more and more advertising and sales campaigns to promote sales to the maximum.

WEAKNESS:
As no man in this world is a complete man and so are the companies. Every company has got weakness so as Coca-Cola Company too. Some of the weaknesses which the company should overcome are as follows: A.) Distribution network: The company has got an average distribution network this is one of the reason why the company fails to fulfill the demand of the customer at time of peak seasons. It must go for some more bottling plants and should opt for better distribution channels to increase the sales in the best possible manner. B.) Pricing strategy: The company has got a pricing strategy as there is no certainty of rising or fall of price during the peak season. This also hamper the sales of the company as the retailers and distributor get dilemma whether to place the next order or not as increase or decrease in price may hamper their profit margin and blockage of the goods.

OPPORTUNITIES:
Instead of weakness and threats the company the company has got various opportunities to which it has to go for. The opportunities for the company are as follows:

A.) Large Market: As India is said to be one of the biggest market in the world, thus the company survive for long and can expands to its length and width. Still there are thousand of villages which have not been covered by soft drink companies. If the company targets the rural market it can easily make large profits and thus can also satisfy its aim to benefit and refresh the whole nation. B.) Launch of other brands: Coca- Cola Company has got more than 300 brands which is running successfully over the world. Thus it can launch some more brands in the country, after studying the demand and desire of the people and can deep its roots by winning their minds and hearts.

THREATS:
Some of the threats which the can face: (A) Competitors: One of the strong competitors of the company is Pepsi Co. thus it has to formulate such strategies which make it to remain one step ahead and give a strong competition to the competitors. Some of the other competitor in the path of growth to the company is the local soft drinks manufacturers who play an active part at the time of peak season. The other local refreshers like Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the company. (B) Govt. Policies: The policies of the government also play a major role for the company. The company can not perform well or in its own way by violating the rules of the government. Thus if the government formulates some policies which creates hindrances in the working of the company it will prove to be one of the major threats.

1.7 PRODUCTS AND PACK SIZES:

Coca-cola is the world's favorite drink. It is the world's most valuable brand and the most
recognizable word across the world. Coca-Cola has a truly remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. In India, Coca-Cola was the leading soft-drink till 1977 when govt. 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 the remote and inaccessible parts of the nation. Over the past ten years it has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. CocaCola 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 the 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.

Thums 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.

Fanta 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". Fanta is perceived as a fun youth brand and 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.

Lime n' lemoni 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 flavor soft drink in the country.

The sharp fizz and lemoni 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.

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. With a strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. Its clear crisp refresh hingtaste encourages the today's youth to trust their instincts, influence them to be true to who they are and to obey their thirst.

Maaza was launched in 1976. It is a drink which offered the same real taste of fruit juices and
was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India and it currently dominates the fruit drink market.

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"

Kinley Water, a thirst quencher that refreshes, a life giving force that washes all the toxins
away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. The importance of water can never be 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 the company believes that right to pure, safe drinking water is fundamental. Its a universal need which cannot be left to chance.

The below table shows the brands and products of different pack sizes being sold by the company in Kanpur region :
BRAND NAME GLASS Coca-cola 200 ml and 300ml Thums up 200 ml and 300ml Fanta 200 ml and 300ml Limca 200 ml and 300 ml Sprite 200 ml and 300 ml Maaza 250 ml Diet Coke Kinley Water 500 ml 300 ml TETRA PACK 200ml PET 2L and 600 ml 2L and 600 ml 2L and 600 ml 2L and 600 ml 2L and 600 ml 1.2L 500 ml CAN 330 ml 330 ml 330 ml 330 ml 330 ml 330 ml FOUNTAIN Various sizes Various sizes Various sizes Various sizes Various sizes -

The different pack sizes on which discount is given by the company are:
1 2

200 ml RGB1 CSD2 250 ml juice3 300 ml RGB CSD 600 ml Pet4 CSD 1200 ml Pet Juice 2000 ml Pet CSD 330 ml Can CSD 200 ml Tetra Pack Juice

RGB Returnable Glass Bottles CSD Concentrated Soft Drink 3 Juice Maaza 4 Pet Plastic bottle

The below table shows the number of bottles in each case and brands available in different pack sizes.
Pack Sizes 200 ml RGB 250 ml RGB 300 ml RGB 330 ml Can 500 ml Pet 600 ml Pet 200 ml Tetra Pack 1.2 ltr Pet 2 ltr Pet No. of bottles per case 24 24 24 24 24 24 27 12 9 Brands Coke, Fanta, Limca, Thums up and Sprite Maaza Coke, Fanta, Limca, Thums up, Kinley Soda and Sprite Coke, Fanta, Limca, Thums up, Sprite and Diet Coke Diet Coke and Kinley Soda Coke, Fanta, Limca, Thums up, Sprite and Maaza Maaza Maaza Coke, Fanta, Limca, Thums up and Sprite

1.8 MANAGEMENT STYLE: DONT The company discourages such conduct and habits which are likely to undermine the way of life in the organization.

If it is mandatory for the company to adopt both the accounting standards i.e. UGAAP & IGAAP, then the company should make sure there should not be violation of any of the accounting standards in UGAAP as well as in IGAAP at any cost.

DOES The company should make aware and impart knowledge to the employees regarding

clear cut bifurcation of standards used UGAAP & IGAAP.

The company should take necessary steps so that paper work should be as less as

possible, but this should not be at the cost of effectiveness in work. NOTE: 1. UGAAP -- UNITED STATES STANDARDS GENERALLY ACCEPTED ACCOUNTING PRINCIPLES 2. IGAAP -- INDIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

2. KEY ACCOUNTS
2.1 INTRODUCTION:
Responsible for building and maintaining relationships with key customers in order to maximize sales and ensure proper execution of pricing and promotional programs. Key Accounts are those accounts which are effective to increase the sale of company. These key accounts have some special agreements with company. There are pre decided sale volume agreement between company and keys accounts. They have monopoly outlets to sale the HCCBPLs products. They are not supposed to sale any other brand besides coca cola.

2.2 AN IMPORTANCE OF KEY ACCOUNTS

A lot of organizations appreciate the importance of Key Account Management but fail to identify their KEY ACCOUNTS in a strategic fashion. This is simply because of a common misconception that big (company size) is also key and that offering special treatment costs more. In this series of articles, I will highlight the importance and steps for identification of key accounts, an approach to segmentation and categorization of accounts, and steps for developing a key accounts. Key account helps companies gain the status of strategic rather than commodity supplier to their major customers, guarding margins and improving security of retention.

2.3 CUSTOMER SEGMENTATION APPROACH TO IDENTIFYING KEY ACCOUNTS Identification of key accounts should be a quantitative exercise rather than a motional one based on personal preferences. The recommended approach\is suggested below:

Step 1: Group our customers into three or more categories by sales. For instance International Accounts, National Accounts and Regional Accounts.

Step 2: Include contribution margins and direct profit or any other financial matrices that make sense for our business.

Step 3: Identifying key accounts based on the accounts that have the highest impact or company financials.

2.4 KEY ACCOUNTS STRATEGY Most companies that 80 percent of their business comes from 20 percent of their customers. Yet they often fail to have a specific key account strategy. All customers are not created equal rather each customer has a unique set of needs that must be met to satisfy their business requirement. Key account watch strategy is focused on increasing customer retention by identifying issues that influence customer loyalty as well as potential vulnerability regarding your products and services. We help uncover issues of cultural, knowledge and process that can form barriers to your becoming a customer centric organization and also will assist your organization In leveraging your loyalty initiatives within your key customers accounts. Key account strategy has three key elements: Implement Loyalty Partnering - Our loyalty partnering strategy helps you focus on your key customers to monitor them for secure status the ability to withstand competitive advances and the potential for being lost to the competition. The loyalty partnering includes identifying every fact of the customer retention process and assigning an account manager to each key account to serve as the customers advocate. In this role they become thoroughly, knowledgeable of the customers business objectives, organization, products, service as well as their competitors.

 Analysis, Conclusions and Recommendations Analyze both quantitative and qualitative measurements to determine the quality of customer service provided. As a result, your organization is better prepared to turn customers matrices information into effective management action. Our loyalty professionals assist you in identifying competitive advantages and deficiencies and than prioritizing and targeting opportunities that lead to enhanced customer retention.

Loyalty Intelligence Report We develop a key account loyalty presentation that highlights service provided, customer satisfaction with those services as well as identification of key open issues and related corrective action plans.

2.5 LIST OF KEY ACCOUNTS

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Account Name Checkmate Temptation Aromas Jungle Water Park Ganges Club Hotel Landmark Upper Crust Adarsh Bakery Gurudev Cinema Mehfil Kool Kat Cawnpoore Club SGM Rave @ Moti Rave 3 Entertainment Treat Vishal Mega Mart Reliance A-1 Plaza, Unnao Reliance A-1 Plaza, Handia Reliance A-1 Plaza, Saini BPCL In & Out, Tilak Nagar BPCL In & Out, Kakadeo Domino's Domino's - Rave @ Moti Region/National Region Key A/C Region Key A/C Region Key A/C Region Region Region Region Region Region Region Region Region Region Region Region Region Key Key Key Key Key Key Key Key Key Key Key Key Key A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C A/C Channel E&D E&D E&D Entertainme nt E&D Horeca E&D E&D Cineplex E&D E&D E&D Grocery Cineplex Cineplex E&D Modern Trade Travel Travel Travel Modern Trade Modern Trade E&D E&D Shared/Exclusiv e Exclusive Exclusive Exclusive Exclusive Exclusive Shared Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Exclusive Shared Shared Shared Shared Shared Shared Exclusive Exclusive

National Key A/C National Key A/C National Key A/C National Key A/C National Key A/C National Key A/C National Key A/C National Key A/C

25

Big Bazar (Kanpur)

National Key A/C

E&D

Exclusive

2.6 RESPONSIBILITIES FOR KEYS

Build develop and maintain customer relationships with key accounts or channels. Direct calls o customers, sells in initiatives such as new brands and packages, marketing promotions. Resolve customer concerns and issues. Develop and maintain strong working relationships with our customers and actively participate in their business planning process. Build an execute sales forecasting and ensure proper execution of pricing promotional programs and Customer Marketing Agreements (CMA) or channel pricing. Assure in outlet standards are executed per channel direction. Develop and implement business plans. Execute creative marketing promotions, develop and deliver sales presentations. Maintain and assure implementation of ad calendar. Communicate market conditions with internal sales force. Acquire new customer information and advise business representatives. Review business results with customers at pre-determined frequencies and agree on business improvement initiatives. Develop collaboratively with customer a trimester price / package plan that generates desired results for both customer and Coke systems.

3. FREIGHT

3.1 FRIEGHT AGREEMENT Company points of view The company is interested in hiring the services of the transporter for carrying the goods. The transporter is engaged in the business of transport of goods and has approached the company, to offer its services for the transportation of goods on mutually agreed terms and condition. The parties are now desirous of recording the terms and conditions of this agreement

Definition unless repugnant to the context the following terms shall have the meaning assigned to them here under: Door delivery- means the delivery of goods by the transporter at designated location stated in the delivery challan. Factory- shall mean the manufacturing location of the company or its co. packers as the case may be. Freight rate- shall mean the rate detailed in annexure-1 for one way or round trip and is inclusive of incidental cost & cost of supporting wooden angles if any tarpaulins, plastic

sheets, govt. tax sure change. Transit risk no additional payment shall be made unless explicitly agreed to in writing by the company

Goods shall means all the merchandise, commodity items and other property handed over to the transporter for transporting on door delivery basis at the location at designated in the challlan Intellectual property- shall means all the trademarks including but not limited to coca cola(R), coke(R), fanta (R) sprite(R) thumps-up(R) limca (R) kinley (R) maaza (R) Citra(R),diet coke(R)TM; there word mark(s) symbols, trade names(s) dynamic ribbon device and all its related trademarks or any variations thereof whether owned by the company. USA or any its subsidiaries. One way trips- shall means loading of goods from the factory for transporting on door delivery basis at the location designated in the challan. Transshipment- means the transfer of goods form the 1 truck to another.

Truck- shall means the commercial vehicle as specified in annexure 2 attached her to be used for carriage of goods. Two way trips- shall means loading of goods from the factory for transporting on door delivery basis of the location (unloading location) designated in the challan issued at such factory and returning to the factory of delivery of goods loaded form the unloading location.

Payments & accounting-

Subject to the terms and conditions of these presence, company shall pay the transporter as per the freight rates specified in annexure 1

The freight shall be paid by an account payee cheque by the factory after receiving the original fright bill proper acknowledgement of the consignee for receipt of goods and all other proper such as copy after challan, statutory form etc. drivers copy of lorry receipt (L/R) will be accepted as proof of receipts only in accept ional cases at the role discretion of the company. the transporter need to submit such documentation of 1-15 of the months by 22 of same month and of 16 to end of the month by 7 of next month payment shall be made by the company within the 10 working days from the date of receipt of such clear and complete documentation

Payment to the transporter shall be subject to deduction of tax at source, service tax and all other applicable taxes and levies.

Transshipment-

There shall be no transshipment of goods accept in case of accident / breakdown of trucks. In which the transporter would obtain prior written permission of the company for such transshipment. The transporter shall not be entitled to any additional payment on account of such transshipment.

The transporter confirms that any damages to goods during transshipment shall be deemed as shortage the provision of clause & shall come onto force.

Quality of trucks The transporter undertakes not each truck shall in addition to the specification laid out in annexure 1meet the following quality requirement. It shall always be free from any bad order or foul smell. the transporter will be safely responsible for rejection of goods due to bad odor, foul smell or usage of cement/ fertilizers/pesticides/chemical trucks etc. and in such circumstances, the transporter shall be liable for delivery of such rejected goods back at the factory and the company shall in such event be not liable for making any payment to the transporter & shall in addition be entitled to change for the transporter for the invoice value of such damaged goods.

It shall not carry any protrusion/ sharp objects particularly at its internal body or where the goods are to be stacked.

It shall always carry adequate undamaged tarpaulins for covering the top as well as the bottom of the trucks.

Protection The transporter shall only be entitled to refuse the leaking/ breakage of cartoons into the truck. The transporter shall ensure proper loading & carrying of goods & tie the ropes with the tarpaulins to prevent damage to the cartoons, Failing which the company shall be entitled to recover all losses suffered on account of such lapses from the transporter. At the unloading location the transporter shall collect the receipt advice mentioning the leakages, damages & shortage found on receipt & submit the same along with the documents for the payments to the concerned factory.

SHORTAGE & DAMAGES It is agreed and understood that for shortage in receipt of goods based on the stock receipt advice issued by the consignee the company shall recover the loss on amount of short receipt of goods at the invoice value of the goods. The company shall have the right to recover this amount by deducting the same from the freight payment due or in such manner as it may due fit.

The transporter shall be fully liable for any all the losses or damages suffered by the transporter and or company due to negligence attributable to any at or omission of the transporter.

The parties have agreed to settle losses on account of losses on receipt as under.

There would be a deduction if a maximum of 1-open/ leakage: 50% of liquid and no above deduction. 2-burst vehicle capacity: 300-325 500-550 no. of bottles. 6 nos. 10 nos.

In case abnormal breakage more than one case each case will be handled separately & mutually. In the abnormal breakage payment will be hold & balance payment will be released on mutual understanding.

Transporter has to deposit all the burst /breakage/ leakage bottles at any factory in order to claim breakage allowance.

In case short delivery the full value of shortage will be deduct from the transporter bill (shortage amount will be calculated on invoice value.

Delays-

The transporter shall ensure the recording of date and time of reporting to the consignee. This shall be the basis for the damages for the delay changes.

In case of any delay in the delivering the goods the company reserves the right to make the deduction from transporters bills at the rate of rs.200 pr day (DCM vehicle) and Rs.350 per day (LP vehicle) for first to days of delays @ 300& 450 respectively per day for everyday of delay thereafter.

Statutory Compliance The transporter shall be solely responsible for and undertake to comply with all the laws regulation and requirement of any government and of many municipal or any other authority having jurisdiction in any manner whatsoever in connection with its operations. One transporter shall ensure that driver of a truck does not suffer from any disability, whether legal or physical.

Indemnity The transporter shall indemnify and at all times keep the company indemnified against:Actions, proceedings, claims, demands on prosecutions. Whatsoever which may be brought commenced or instituted against the company for the damages or loss or accident caused to any third party arising out of or relating to the transportation of the goods & also against all costs, damages, loses , expenses which the company may be required or

caused to be paid or incurred in defending or settling the the same in consequence thereof. Confidentiality All financial information exchanged between the parties here to shall be kept strictly confidential and non of the parties shall utilize , dissolve or divulge any much information to any person or persons, in any manner whether directly or indirectly, whether for consideration otherwise except as required under law.

The freight rate shall remain valid for the term. The company shall entertain no request for rate revision however it may opt to consider revision in case of any material change in the diesel price of more than Rs.1.50 over Rs.34.37 per liter (base date being consider as Jan. 2009) in kanpur. The company may evaluate the option of revision of the freight the on the basis of mileage of 3.5 km. per liter of diesel in case of LP.vehicle & Rs. 5 km. per liter in case of DCM vehicle or the basis of fixed formula as detailed here under whichever is lower.

Increase in freight- distance *(P-PO)/ mileage) Where distance= two way distance from factory P=new fuel rate per liter PO=old fuel rate per liter

Detention

Detention changes for the trucks reporting at destination with the prescribed transit time, shall be payable at the rate of Rs.300 per for load site of 300-350 case and Rs.450 for 351-600c/s for first 3 days & Rs.300 pr day load size of 300-350 c/s and Rs.450 for 351-600 c/s Rs.700 for 1000 c/s & above.

Thereafter in case companys distributors inability to unload the trucks within 24 hours of the prescribed transit time. Detention changes shall be computed for the period

commencing 24 hours after the prescribed reporting time.

Freight Payable Freight is a major cost head of the company. Every company puts an extra effort to reduce this head to the best possible extent in order to reduce its cost of the product. The Company pays two types of freight which includes freight inward and freight outward Freight inward is the amount that is paid by the company for acquiring goods like raw material, advertising goods or for bringing finished goods in the company. Like wise the company purchases sugar, Carbon Di Oxide for manufacturing various types of beverages in its product portfolio. Freight Outward is the sum that is paid by the company for delivering goods by the transporters at the distributors outlet. The freight rates are previously determined by the company with the help of a contract/ agreement which is made to acquire services on a yearly basis. The rates for various stations are negotiated and after the process of negotiation the agreement is made or renewed for providing services. The agreement includes various terms and conditions

which is applicable from when the truck is hired for a station till the time it does not reaches the destination. Like one of the condition is of detention which means that the truck should be unloaded by the distributor within 24 hours of reaching the distributors outlet if the truck is detained for more than 24 hours then the company has to pay extra charges to the transporter so as to remunerate the labour employed by the transporter.

The amount paid in lieu of detention depends upon the load size the truck is taking to the distributors outlet. Likewise if the load size of 300 350 cases (crates) the amount of detention is Rs.300 for the first three days and Rs. 400 there onwards. If the load size is of 351 600 cases then Rs. 450 for the first three days and Rs. 500 there onwards. But the detention is not payable if the transporter writes in the invoice was detained for two days. On the invoice the distributor gives the receiving about the detail of goods and he writes the arrival time and departure time of the distributor. This in turn needs to be verified by the Territory Manager who in turn clarifies with the sales executive and then only authorizes the number of days the vehicle was detained. The transporters bills have supporting invoices which are presented at the time when payment claims are made. The bill gives the detail about the Good Receipt Note Number, Invoice number, Invoice date, Name of the Distributor & station to which the vehicle was sent, vehicle number, load size, amount as per the contract and over load charges if any.

Over load charges means that the extra load than the actual capacity of the vehicle. The transporter uses two types of vehicle one of which is DCM Toyota and other one is the normal size of the truck. The maximum load that the DCM can take is 350 cases and the maximum of 550 cases for the other one. Anything above that would be considered for both as overload and the company has to pay the overload charges.

Club load means if one vehicle at a time is taking goods to two stations. In this case of the company has to pay Rs. 400 for extra station and the freight rate will be applicable of the station whose fright rate is more amongst the two. The part which takes the most attention while analyzing the freight bills of the company is when the transporter gives the bills it has the supporting invoices along with it which one by one is picked up. The analysis part is of carefully matching the goods receipt note number, invoice number, invoice date, the station to which the goods have been invoiced, the quantity as stated on the bill. After this the invoice is seen through on which the distributor gives the receiving of filled bottles. If the distributor writes actual quantity received as per the invoice then no deductions are made and if the distributor writes quantity received in good condition, number of bottles short (bottles not received), number of leakages received, number of bottles found open, number of bursts received then it calls for deduction.

There is actually a rebate slab in the contract which tells the maximum number of leakages, bursts, open and breakages allowed depending upon the load size. Short bottles are not allowed and if bottles are found short then the actual amount (glass and flavor) is deductible from the total bill amount. Particulars Burst/ Breakages Leakage/ Open 251 - 350 6 351 - 550 10 550 - 700 13 700 1000 20

FULLS :
Fulls mean bottles with flavor like ThumsUp, Coca-Cola, and Sprite etc If a bottle is found short then the amount of glass and flavor is deductible as there is no rebate allowed. Similar is in the case if a bottle is found Burst but the difference in Shortage and Burst is that in burst some relief is allowed to the transporter whereas in case of shortage no relief is allowed.In case of leakage or open relief is allowed but the amount deductible is only of flavor and not of glass. If a bottle of 200 ml is found short / burst then the amount deductible is Rs. 7 for the flavour and Rs. 6.07 for the glass i.e. Rs 13.07. In case of 300 ml bottle is found short then amount deductible for the glass is same Rs. 6.07 and Rs. 10 for the flavor i.e. Rs. 16.07. In case of Cans, Pet Bottles whole amount is deductible. In some cases when the load is like of 700 which includes 200 ml, 300 ml, 330 ml, 1.2 ltr., 2 ltr. And the distributor writes leakages, short, open, found while unloading in all the product varieties then the rebate that would be allowed on will be on 200 ml bottles and rest whole amount would be deductible.

PERFORMA OF INVOICE OR FULLS DESPATCH ADVICE InvoiceNumber:0020/2007-08 Name of Distributor: XYZ Vehicle Number : S.No. Particulars 1. ThumsUp(24) 2. Limca (9) 3. Maaza(24) TOTAL Size 200 2.0 250 Transporters Name : Qty. 100 25 75 200 --------Rate Amount Date:14/6/07

EMPTY:
In case of empty the Invoice is matched with Empty Receipt Advice (ERA) that the empty bottles that is being sent by the distributor is being received in full or not. The slab mentioned above is also applicable in this case. But only shortage and breakage of bottles is deductible. Sometimes fulls that are being invoiced in the name of the distributors firm turn out to be less when they are being unloaded in crates that means the bottle as well as the crates is received short. In this case the amount that is deductible is of Crate, Glass and Flavor. The total sum of all this turns out to Rs. 397 for 200 ml bottles and Rs. 420. The bifurcation is like Rs. 136 for the plastic crate, Rs. 144 for the glass & Rs. 117 for the flavor. The plastic crates are known as Cases on Loans, glass bottles are known as Returnable glass bottles.

PERFORMA OF EMPTY RECEIPT ADVICE Name : No : Date : Vehicle Number : S.No. Particulars 1. Coca-Cola(24) 2. ThumsUp(24) 3. Fanta(24) 4. Maaza(24) Size 300 200 300 250 Transporters Name : Qty. 200 100 75 75 Rate Amount

TOTAL

450

-------

SELF CLAIMS :
Self claims are made by the distributor when it does not uses the company vehicle in order to receive the goods instead of that it sends his own vehicle to the company and takes the goods on his own risk. In this case no shortages, open bottles, burst or breakages or leakages can be claimed. The order that is received by the company from the distributor includes the freight and no extra charges are made. In case of self claims the company gives the credit into the distributors account in the tally but the total number of crates is matched. The rate at which the self claims are settled is mutual settlement between the company and the distributor. The rate at which the claim is settled is on a per case basis is far more than what it actually pays to the company hired transporter while delivering the goods at the distributors outlet.

4. REAL TIME GROSS SETTLEMENT (RTGS)

FAQ1

What is RTGS Facility?

RTGS System is a funds transfer mechanism where transfer of money takes place from one bank to other on Real Time and on Gross basis (Transaction is settled on one to-one basis without bunching with any other transaction)

FEATURES
This is fastest possible money transfer system through banking channel The facility is being extended to more than 53000 bank branches across India It is primarily for large value transactions. Minimum Amount to be remitted should be at least Rs 1 lakh RTGS cut off timings

Week Days MondayFriday Saturday

Customer Transaction Inter- Bank Transaction Timings Timings 9.00 hrs to 16.30 hrs 9.00 hrs to 18.00 hrs 9.00 hrs to 12.30 hrs 9.00 hrs to 14.30 hrs

FAQ 2

How is RTGS different from Electronic Funds National

Transfer ( EFT) or

Electronic Funds Transfer System ( NEFT) ?

EFT and NEFT are electronic funds transfer modes that operate on deferred net settlement (DNS) basis which settle transactions in batches . In DNS, settlement takes place at a particular point of time. E.g. in NEFT, settlement takes place 6 times a day during week days and 3 times a day on Saturdays. Any transaction initiated after a designated settlement time would have to wait till next designated settlement time

FAQ 3

What is the time taken for effecting funds transfer from one account to another under RTGS?

Under Normal Circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiarys account within 2 hours of receiving the funds transfer message

FAQ 4

What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected ?

Amount to be remitted Account number to be Debited Name of beneficiary bank Name of beneficiary customer Account number of beneficiary customer IFSC Code of receiving branch

FAQ 5

How would one know the IFSC Code of the receiving branch ?

The beneficiary customer can obtain IFSC code from his branch. The IFSC code is available in the cheque leaf. FAQ 6 How is HCCB Using this benefits of RTGS ?

E- Payments HQ has started making payments to employees and vendors through RTGS/
EFT. A list of payments to be made is generated by Cola and loaded to Citi Banks Site.

Payments are verified and authorized online. Citi Bank sends an e-mail and payment advices electronically to vendor/ employee intimating him/ her regarding credit of funds to the account.

Advantages
Reduced Paper Work No mailing cost Timely Payments Approval of payments possible through Internet

E- Collection- We have started collections through e-banking from our distributors/ customers across India.

Advantages
Reduced Time and Cost ( Cash Management Fee, Admin Charges) Faster turnaround Time Real Time information & data Reduced value at risk. ( avoided incidences of cheque bouncing)

5. OBJECTIVES & SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY:
To study How the Finance Department of Hindustan Coca-Cola Beverage Pvt. Ltd. To have a broad view of the companys financial policies. To learn what points are considered while making reconciliation statement of key accounts. To learn what points are considered while processing freight claims of the transporters. To ensure that processes are within policies and procedures of the company. To ensure that the payment of the freight is made within the specified amount of time. To study what formalities that have to be fulfilled while making purchases and while making payments. To ensure the transactions that occur are properly recorded and are recorded with the specified procedures.

6. REVIEW OF LITERATURE

6.1 COMPETITOR ANALYSIS Indian soft drinks market is predominantly controlled by two major multinationals namely CocaCola and Pepsi, which have carefully stifled out the local competition here in India. Penetrating tough Indian psychology and making their products feel accepted was the toughest challenge in front of them. A brief overview of the soft drinks giant biggest competitor will help in gaining a better insight of the soft drinks market in totality. 6.2 CURRENT MARKET POSITION There has been much controversy and debate on the market share standings between the two companies in the Indian subcontinent and a substantial and a consolidated figure has been unavailable for reference. This is mainly because both companies had approached different market research companies for making a study about the market share standings. Pepsi Co had approached IMRB while Coca- Cola had entrusted this responsibility on ORG. According to the survey done by IMRB Pepsis market share was found to have increased from 47% to 49% while according to the study conducted by ORG Coca- Colas market share was claimed to be 59%.

6.3 FACTORS AFFECTING BUSINESS Seasonality: Seasonality is one of the most important factors that affect the soft drink business. Seasonality is primarily influenced either by the weather, or by holidays and religious festivals. Within the Group, soft drink business has different seasonal cycles throughout the year. Service frequency: This is another factor that affects the business. Service frequency is the time gap between visiting a particular outlet again. Service frequency directly affects the rotation time which in turn affects the value of business. Demand pattern for the market: Every product has a different demand pattern and affects the business. Price of the product: Price of the soft drinks also affects the business. Due to perfect competition in soft drink market, price of a product plays a major role in business. Disposable Income: Disposable Income of the consumers also affects the business of the soft drink players. A high disposable income of the consumers ensures a high demand for the products in the market. Demographic Profile: Demographic profile of consumer also affects the business and needs to be considered. Competitors Policy: The policies of the competitors also affect the working of the business of other companies. Government Policies: The government policies related to taxation or political interference also affect the business of the players in the soft drink industry.

6. CONCEPTUAL FRAMEWORK & METHODOLOGY

RESEARCH DESIGN:
What is Research Design? Research design can be thought of as the structure of research -- it is the "glue" that holds all of the elements in a research project together. We often describe a design using a concise notation that enables us to summarize a complex design structure efficiently. What are the "elements" that a design includes? They are:

Observations or Measures These are symbolized by an 'O' in design notation. An O can refer to a single measure (e.g., a measure of body weight), a single instrument with multiple items (e.g., a 10-item self-esteem scale), a complex multi-part instrument (e.g., a survey), or a whole battery of tests or measures given out on one occasion. If you need to distinguish among specific measures, you can use subscripts with the O, as in O1, O2, and so on.

Treatments or Programs These are symbolized with an 'X' in design notations. The X can refer to a simple intervention (e.g., a one-time surgical technique) or to a complex hodgepodge program (e.g., an employment training program). Usually, a no-treatment control or comparison group has no symbol for the treatment (some researchers use X+ and X- to indicate the treatment and control respectively). As with observations, you can use subscripts to distinguish different programs or program variations.

Groups Each group in a design is given its own line in the design structure. if the design notation has three lines, there are three groups in the design.

Assignment to Group Assignment to group is designated by a letter at the beginning of each line (i.e., group) that describes how the group was assigned. The major types of assignment are:

R = random assignment N = nonequivalent groups C = assignment by cutoff

Time Time moves from left to right. Elements that are listed on the left occur before elements that are listed on the right.

RESEARCH HYPOTHESIS:
A non-stationary time series is said to be integrated in order one, often denoted by I(1), if the time series is stationary after the first order differencing. The theory of cointegration applies to the study of testing the efficiency of a futures market where S t is the spot price at time t and Ft-i is futures price taken at i periods before the contracts matures at tome t and i the number of periods to maturity. If both St and Ft-i are I (1) the co integration of the vector (S t, Ft-i) is a necessary condition for market efficiency (Lai & Lai, 1991). Co integration of two prices series is a necessary condition for market efficiency hypothesis which implies that the future price is an unbiased predictor of the future spot price. If the two series are co integrated, St and Ft-i move together and will not tend to drift apart over time. First of all the series are tested for stationary using Augmented Dicky Fuller test (ADF). Here the null hypothesis is H0: @ = 0; (Unit root is equal to one or no stationary) H1: @ 0 If the test statistics is less negative than the critical value, null is accepted and series is not stationarity and vice versa.

If series are found to be stationary after first differencing then series would be called I (1). After this the Johansens Cointegration tests are conducted where the rank of the rank of the coefficient matrix of Kth order VAR model (in our case the no of type of series are two therefore the k=2). H0: r = 0; (no Cointegration) H1: r 0 If the value of trace statistics is less than the critical value, accept the null or no-cointegration. And if the alternate is accepted then only the cointegration is significant and weak-form EMH holds true. TEST APPLIED FOR WEAK FORM HYPOTHESIS TESTING.

VAR MODEL(VECTOR AUTO REGRESSIVE MODEL) UNIT ROUTE TEST

VAR MODEL (VECTOR AUTO REGRESSIVE MODEL)

A reduced form of the autoregressive model with multi-variable time series is denoted as follows, where yt is a j vector of endogenous variables, xt is a k vector of exogenous variables, l i and m i are matrixes of coefficients to be estimated, and ut is a j vector of error terms or impulses in the language of VAR:

Since VAR models do not distinguish the dependent variables from the independent variables, the notation of yt and xt is conventional. Under the assumption that ut is neither autocorrelated nor correlated with any of the right-hand side variables, we can appropriately estimate the coefficients by OLS. The number of lags m is again determined by Akaike information criterion (AIC), or Schwarz criterion (SC).

UNIT ROUTE TEST

Let us denote the stochastic error term by ut, which has zero mean, constant variance, and is not autocorrelated. Such an error term is called white noise. If t = xt - xt-1 x is stationary, where is the first-difference operator, the original series xt is called integrated of order 1, and denoted by I(1). In general, if a time series has to be differenced r times before it becomes stationary, it is integrated of order r, or I(r).

Consider the autoregressive model xt = r xt-1+ ut, where ut is white noise. If r =1, then xt is a non-stationary time-series known as a random walk, and we say that xt has a unit root. The model can be modified as xt = ( r - 1) xt-1+ ut = a xt-1+ ut, where a = r - 1. The unit root is tested for xt under the null hypothesis that a = 0. More generally, the unit root is tested for xt under the null hypothesis that a = 0 in the time series model xt =a xt-1 + b t +g + ut, where t is a time trend, and g is a drift parameter (intercept). If the error term ut is auto correlated, then the model is modified to include more lags:

The number of lagged difference terms to include m is determined empirically by Akaike information criterion (AIC) or Schwarz criterion (SC). The unit root test for xt under the null hypothesis a = 0 applied to the model (1) is called augmented Dickey-Fuller (ADF) test. We can effectively apply the Phillips-Perron (PP) test to the same model, when ut is auto correlated.

RESEARCH METHODOLOGY:
Research is a diligent and systematic inquiry or investigation into a subject In order to discover or revise facts, theories, and applications. Methodology is the system of methods followed by particular discipline thus; research methodology is the way how we conduct our research.

Types of Research and The Research Design

The type of the research that will be used in this research is qualitative research. The writers will get the data by analysis and interpretation of themes, words and also using cases as the base. As for the research design, the descriptive research is being used in this research. Descriptive research is a research which specific predictions is made, the percentage of units in a specified population exhibiting a certain behavior is measured, the characteristics of relevant groups is described, the degree to which marketing variables are associated is determined, and to determine the perceptions of product characteristics.

Types of Data and Data Collection Methods

There are two types of data: 1. Primary Data The primary data are data which are being collected by the researcher for the specific purpose of answering the problem on hand. It is taken by the observation during the research for four different times and interview with the owner who is also the supervisor of the restaurant, captain, chef, and two cooks.

2. Secondary Data The secondary data is being obtained by the literature study and the articles from the internet. and this is report has been prepared on the basis of the secondary data as made available by some previous researchers.

Population and Sampling Design

Population is a group of people or objects from which the sample for statistical measurement is going to be taken. Sample is a part of population which represents the characteristics of population and suits with the researchs purpose. The population and the sample of this research is the owner who is also the supervisor, captain, chef, and two cooks of the Lucky City Restaurant. The sampling technique that will be used is judgmental sampling in which the sample is being decided based on the judgments of the writers in order to achieve the purpose of the research.

Variables
Variable is a symbol (like x or y) that is used in mathematical or logical expressions to represent a variable quantity . There are two types of variable: a. Dependent Variable A dependent variable is a variable which is influenced by another variable. The dependent variable of this research is food hygiene.

b. Independent Variable An independent variable is a variable which gives influence to another variable. The independent variables of this research are storing, preparing, cooking, holding and service, cooling leftovers, reheating, personal hygiene, dish and equipment cleanliness, and facility design.n urban areas, the 8 to 10 percent of total sales of coke is through Area Market Contractors (AMC) who is equivalent to big retailers and other outlets. In the village areas .coke uses so called distributors for the sales. A striking feature in the logistics of Coke is that the AMCs supply material directly using trucks but in case of inaccessibility to retail outlets due to location-constraints, supply is made through auto rickshaws also.

The truck also gives the company permanent hoarding space on their sides and backs. Also, as the industry competition is strong dealer push at the point of purchase is an important factor for sales. The retailer often can play manufactures against each other to obtain favorable deals. To avoid this situation coke incorporates a high degree of standardization with respect to the price waterfall elements (the various types of discount offered), through there are differences in the timing. Innovation in availability is something that coke can lay claim to. Coke introduced the pushcart. Coke is busy putting in place infrastructure to hit villages with its small 200 ml bottle, priced aggressively at Rs. 5. With 200 ml it has larger market. It is exploding this market with low unit price packs and pushing growth in home consumption through the PET bottles. Cokes game plan is to have high volume, low margin business. The infrastructure costs will be high but they have to rework their other costs coke credits and discounts and bring them down.

6. ADVERTISEMENT

6.1 ADVERTISING Advertising has played an important role in the success of products since first newspaper ad in 1886, which read Coca-Cola Delicious! Refreshing! Exhilarating! Invigorating! The company uses adver4tising to trigger desire as often and in as many ways as possible. Through out the years, slogans or coca-cola have been memorable .Here are some highlights: 2000-Coca-Cola Enjoy 1993-Always Coca-Cola 1990- Cant Beat the Real Thing 1989-Cant Beat the Feeling 1986-Red,White and You 1982-Coke Is It 1976-Coke Adds Life 1971-Id Like to Buy the World a Coke 1969-Its the Real Thing 1963-Things Go Better With Coke

 1959-Be really Refreshed 1944-Global High Sign 1942-Its the Real Thing 1936-Its the Refreshing thing to do 1929-The Pause That Refreshes. 6.2 BRAND AMBESSDORS Coca-Cola had signed on various celebrities including movie stars and cricket players such as Karishma Kapoor, Hritik Roshan, Amir Khan, Akshay Kumar, Aishwerya Rai, Vivek Oberai, Rani Mukherjee, Bipasha Basu, Riya Sen, Saurav Ganguly, Virendar Sehwag, southern celebrities like Vijay in the past and today its brand ambassadors .

7. MISSION AND LEADERSHIP

through our brand and our action.

7.1 MISSION

Our mission is to refresh the world in mind, body & spirit and to inspire moment of optimism

Create consumer products, services & communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage & deliver superior value to: Consumers as a superior beverage experience. Consumers as an opportunity to grow profits through the use of finished drink. Bottlers as an opportunity to grow profit and volume. TCCC as a trade mark enhancement & positive economic value added. Suppliers as an opportunity to make reasonable profits when creating real value added in an environment of system-wide teamwork, flexible business system & continuous improvement. CCI Associates as superior career opportunity. Indian society in the form of a contribution to economic and socio development.

7.2 LEADERSHIP Theres never been a better time to be the part of The Coca-Cola Company. Our people are dedicated to strengthening relationship with stake holders and communities everywhere.

Mr. Isdell leads the Coca-Cola Company into the new century with a firm commitment to the values and spirit of the worlds greatest brand. Under Isdells leadership, the Coca-Cola Company is positioned for growth, guided by the mission to provide the branded beverage that refresh people around the world, anywhere, anytime, everyday. By making key decision making closer to the local markets, it has spurred innovation, accelerated growth and fostered deeper connection to the consumer. Simply put they are closure than over to us. A talented and highly experienced world wide management team coordinates the new, nimble and entrepreneurial network .The local strategy enables them to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions.

The company quotes what people want in the beverage is reflection of who they are, where they live, who they work and play, and how they relax and recharge. Whether you are a student in the United States enjoying a refreshing Coca-Cola, women in Italy taking a tea break, a child in Peru is asking for a juice drink, or couple in Korea buying bottled water after a run together, we are there for you. The company is determined not only to make great drinks, but also to contribute to communities around the world through the commitments to the education, health, wellness, and diversity. It strives be good neighbour, consistently shaping its business decision to improve the quality of life in the communities in which it does business. It is a special thing to have billions of friends around the world, and the company never forgets it.

8. MANUFACTURING PROCESS

We at Coca-Cola are committed to manufacture our products with utmost care and with quality at top priority which makes it the world leader in the soft drink industry. Following is the overview of the stringent Processes adopted in manufacturing before our quality product reaches finally to our proud consumers.

8.1 WATER TREATMENT: We at HCCBPL Varanasi follow a batch treatment which includes coagulation & flocculation. The method ensures disinfection and settling of all macro impurities and thereafter it pass to sand, carbon filters to remove off odour ,off colour, off taste, and thus it is strictly bought in line with the WHO requirements. We are also using state of art micron filtration process where the water is filtered up to the extent of 1 micron before it is fed to the process. This extensive treatment of water under strict monitoring and sampling for quality leads to pure hygienic water with the highest quality meeting the Coca-Cola standards. 8.2 SYRUP PREPARATION:

Coca-Cola uses highest quality of sugar which is controlled and ensured by its stringent pre-laid standards, which serves as the strict criteria before acceptance of a lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is given a contact time with hyflo and carbon at elevated temperature. It is then passed through a filter press which removes the carbon particles and other impurities before it declared fit for concentrate mixing. All this process takes place under the strict vigil by the quality department which maintains the appropriate records of the numerous tests carried out in the entire process which makes it a foolproof process. In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple syrup in very strict hygienic condition to yield final syrup. The entire syrup manufacturing area is maintained under a constant positive pressure which rules out the possibility of any external particles entering into the process room.

8.3 CONTAINER WASHING: Container has been identified as one of the major critical control point in the entire manufacturing process & thats the reason that company has laid some of the very stringent and foolproof systems which ensures Coca-Cola product to be of the highest quality and reflects our commitment towards delivering the best in class product to the consumers. The bottles received from the market are loaded on the conveyor by the uncasing machine and the arrays of the unwashed bottles passes through the four pre-wash inspections stations which ensures removal of rusty neck bottles, excessively dirty bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles pass into the bottle washing machine which uses

intensive mechanical and chemical processes to clean and disinfect the bottles thoroughly and ensures the bottles to be ready for filling. However as an additional safety, there is again a post wash inspection station comprising of 4 sub-stations, which ensures removal of the chip necked bottles and suspected bottles from the lot. Thus the bottles are subjected to series of stringent inspections before it is fed to the filler for filling. 8.4 MIXING, PROPORTIONING: Proportioning is basically a process where ready syrup is diluted in a predetermined fixed proportion with water and carbonated concentrate in to beverage conforming strictly to companys norms and specifications. It is carried out by an Italian Machine-MOJONNIER. 8.5 FILLING & CROWNING: The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles through a rotator machine named FILLER. The bottles are immediately crowned by crowner (adjacent to the filler) and thereafter bottles passes through the date coding machine which enable the consumer to be 100 percent sure of consuming a perfectly safe and fresh product.

8.6 FINAL INSPECTION: After date coding, there is once again a final inspection station where light inspectors all low or high filled bottles and permit only the saleable product to pass through for casing to the caser machine. 8.7 MANAGING THE WASTE WATER: Production lines maintain the waste water from the bottle washers, Syrup and Filler rooms. Entire waste water generated is treated at Waste Water Treatment Plant and discharged through a 800 meters long pipeline specially laid to discharge the treated waste water away from inhabited areas. Part of this water is being used for gardening purpose within the plant premises.

8.8 MARKET & CUSTOMERS: Once the finished product is ready, it is transported to the distribution centers and then to retail outlets by way of route trucks. The consumer buys the soft drink from the retailer outlets. The empty bottles are simultaneously collected by the distribution channels at the time of dispensing the finished products. 8.9 SUPPLIERS AND OTHER BUSINESS PARTNER: Other than water and concentrate, bottling operation require sugar, CO2, bottles, crates and other miscellaneous materials. The Coca-Cola India division has a Supplier authorization program where suppliers are authorized based on a defined criterion. Environmental considerations are amongst the critical of these criterions.

8.10 EMPLOYEES, PLANTS & MACHINERY: The no of total unit employees is approximately 113 & in summer season, which is a peak season for sale of soft drinks, the plant works for three shift operation round the clock. The overall education level of the employees is good and they obviously have a good expertise in water treatment and purification processes. Extensive in-house training programs are conducted to maintain the competency of the manpower in respective areas. The plant and machinery consists of state of art bottling machinery and test equipment to get consistent quality product at the optimum usage of raw materials. The plant also has an extensive quality test

laboratory with equipment like spectrophotometer, density meter, micro lab etc. to conduct on the spot tests at various stages of production. A typical bottling line will consist of uncaser- pre wash inspection station conveyers-bottle washer-post wash bottle inspection stationfiller-final light inspection station-conveyor-and caser.

Annexure 1 : Market Share of Coke and Pepsi

Market Share as per Ma OR

** The following shares were calculated with respect to only Pepsi and Coca- Cola. Other companies were not brought under the purview of the research by the research organizations.

Coca- Cola

Coca - Cola

51%

59%

Annexure 2 : Factors affecting soft drinks market

Annexure 3 : Graph showing the sales generated by different pack sizes in the 1st quarter of the year 2007

* Sales volume represents the sales of the products to HVOs only.

Annexure 4 : Graph showing discount given on different pack sizes in the 1st quarter of the year 2007

Discount 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0
l 30 0m l 33 0 ca n 60 0m l 12 00 m l 20 0m 25 0m 2L Te tr a l

Discount

11. Objectives of the Study

20 0

 To study How the Finance Department of Hindustan Coca-Cola Beverages Company works. To have a broad view of the companys financial policies. To learn what points are considered while processing key accounts and freight . To ensure that processes are within policies and procedures of the company. To ensure that the payment of the bills is made within the specified amount of time. To study what formalities those have to be fulfilled while making purchases and while making payments. To ensure the transactions that occur are properly recorded and are recorded with the specified procedures. To study the work process of direct route & indirect route.

10. Limitations of Study

Every study has some limitations in terms of time, cost or human error etcI have tried my best at my level to make it an original and a genuine one. Due to shortage of time it may be that the expectations wouldnt have been met, still an attempt has been made in order to represent one of the best reports. This project report aims at describing the processes that are followed while reconciling the key accounts of HCCBPL and freight payments to the transporters, receiving payments from the distributors. I have tried to explain the actual process but the meaning that it has is not what it actually is. Some human errors would have been resulted while preparing this project report.

14. REFERENCES

www.coca-colaindia.com. www.cocacola.com.

www.yahoo.com. www.wikipedia.com. www.google.co.in. Actual processes in which training was received have been defined. With the help of the senior executives of the company an attempt has been made in order to define the processes and procedures followed.