A PROJECT REPORT ON

Outlet mapping of a

major soft drink company in Patna region

AT

Hindustan coca cola Beverage Pvt.. Ltd.

Patna
BY

ALOK KUMAR
UNDER THE GUIDENCE OF
PROF. R. G. ANANDIKAR
SUBMITTED TO
UNIVERSITY OF PUNE

IN PARTIAL FUFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTERS IN MARKETING MANAGEMENT
(2010-2012)

FOR

INDIRA INSTITUTE OF MANAGEMENT PUNE

ACKNOWLEDGEMENT
At the very outset of engaging myself in to the Project Report. I would like to express my sincere gratitude to all those who extended their not only to convey their best wishes but also to give me support on this hi-undertone path. This Project Report on my 8 weeks practical training in Hindustan coca cola Beverage Pvt. Ltd., Patna is a part of my course curriculum of my MMM. This project could not have been completed without timely suggestion advice and cooperation of a lot of persons. I am extremely thankful and pay my gratitude to our Director Dr. Pandit Mali and my Internal faculty guide Prof. R. G. Aanandikar of Indira Institute of Management, Pune for his valuable guidance and support on completion of this project in its presently . I am also equally thankful to Mr. Sanjeev Kumar (Area Sales manager, Patna) who taught me every minute aspect of marketing. A special appreciative Thank you in accorded to all staff of Hindustan coca cola Beverage Pvt.. Ltd., Patna for their positive support. I also acknowledge with a deep sense of reverence, my gratitude towards my parents and member of my family, who has always supported me morally as well as economically. At last but not least gratitude goes to all of my friends who directly or indirectly helped me to complete this project report.

(Alok kumar)

TABLE OF CONTENTS

SR. NO.

CHAPTER TITLE

PAGE NO.

1.

Title Page

2.

Company Certificate

II

3.

College Certificate

III

4.

Acknowledgement

IV

5.

Table of Content

V - VI

6.

List of Tables

VII

7.

List Of Graphs

VIII

8.

Executive Summary

IX - X

INDEX
SR. NO. CHAP. NO. CHAPTER TITLE PAGE NO 11 13 14 18 19 37 38 39 40 46 47 57 58 59 60 61 62 63 64 65

1.

CHAPTER 1

Introduction

2.

CHAPTER 2

Industry Profile

3.

CHAPTER 3

Company & Product Profile

4.

CHAPTER 4

Objectives & Scope

5.

CHAPTER 5

Research Methodology

6.

CHAPTER 6

Data analysis & Interpretation

7.

CHAPTER 7

Observations & Findings

8.

CHAPTER 8

Conclusion

9.

CHAPTER 9

Suggestions

Reference

Annexure

66 - 69

LIST OF TABLE

SR. NO.

TABLE NO.

TITLE OF TABLE

PAGE NO.

1.

6.1.1

Service Quality provided by the Distributor

48

2.

6.2.1

Service Quality provided by the Pre-Seller

49

3.

6.3.1

Service Efficiency provided by the Distributor

50

4.

6.4.1

Frequency of Service provided by the Distributor

51

5.

6.5.1

Schemes provided by the Distributor

52

6.

6.6.1

Timely availability of required order

53

7.

6.7.1

Monthly sales

54

8.

6.8.1

Merchandise provided by the distributor

55

9.

6.9.1

Grievance redressed by the Distributor

56

10.

6.10.1

Other party purchases

57

LIST OF GRAPH

SERIAL NO.

GRAPH NO.

TITLE OF GRAPH

PAGE NO.

1.

6.1.2

Service Quality provided by the Distributor

48

2.

6.2.2

Service Quality provided by the Pre-Seller

49

3.

6.3.2

Service Efficiency provided by the Distributor

50

4.

6.4.2

Frequency of Service provided by the Distributor

51

5.

6.5.2

Schemes provided by the Distributor

52

6.

6.6.2

Timely availability of required order

53

7.

6.7.2

Monthly sales

54

8.

6.8.2

Merchandise provided by the distributor

55

9.

6.9.2

Grievance redressed by the Distributor

56

10.

6.10.2

Other party purchases

57

EXECUTIVE SUMMARY
Management is a course which teaches the student to get the work done properly from different available sources viz. man, machine, material, money etc. So there can be a satisfaction from the organization side and the workers side who play a significant role in achieving success. So far the fulfillment or the management course, it gives emphasis to project work and students learn how to plan in practical terms rather in terms of theory only. Student tends to develop analytical and problem solving skill. We necessary become motivated and competitive, in fact all the learning that goes on for the two year term become so much the part of our thinking that we developed a well all rounded personality. Within the time limit, I tried my best to select the sample representative of the whole group. During my training, I maintained different chart for different routes during my dealer survey. Researcher has collected data from the distributors, retailers & consumers of Patna. Project Title Company Place Objective

: : : :

Outlet mapping of a major soft drink company in Patna region Hindustan coca cola Beverages Pvt.. Ltd. Patna Patna (Bihar)

The main objective of this project is Mapping of the available marketing channels of HCCBPL in Patna. To find the comfort level of the dealers with the current distribution system To find the lacunas in the current distribution system. To Study of soft drink market share by mapping in Patna.

Research Methodology

: : : Descriptive. Survey method Questionnaire 8 weeks

Research design Research method Research period

Research instrument : :

 Sampling design Sample unit Sample size

: : : Patna city Individual retailers selling cold drinks & consumers : : 250 respondents Non-Probability sampling

Sample Universe

Sample techniques Method of data collection Primary data Secondary data Data analysis techniques Key Findings

: : : : Structured questionnaire books, internet, news papers etc.

Table, graphs and charts : Majority of the respondents receive sufficient display facility & merchandise. 42% of the outlets receive order as per required, whereas 40% of them do not receive orders as per required. Approx 68% of the retailers are satisfied with the service provided by the distributor. Key Suggestions : Company should make plans and impart training to the salesperson for better their performance. Aggressive Marketing by market developer for increasing the sales volume. Regular visit to distributors for better co-ordination. Provide better schemes & services in order to gain market share. Conclusion : Maximum retailers are satisfied with the services provided by the distributor. Most of the respondents told that distributor provides frequent service. Distributor does not provide enough schemes on a regular basis.

CHAPTER - 1

INTRODUCTION

1.1 INTRODUCTION
There is a famous saying The theory without practical is lame and practical without theory is blind. This modern era is era of consumers. Consumers satisfy themselves according to their needs and desires, so they choose that commodity from where they extract maximum satisfaction. It has been identified that in the beginning of 21st century the market was observed a drastic change. The successful brand presents itself in such a way that buyers buy them in special values which match their needs. Marketing is an important part of any business and advertisement is the most important part of marketing. Summer training is an integral part of the MMM and student of Management have to undergo training session in a business organization for 8 weeks to gain some practical knowledge in their specialization and to gain some working experience. Our institution has come forward with the opportunity to bridge the gap by imparting modern scientific management principle underlying the concept of the future prospective managers. To the emphasis on practical aspect of management education the faculty of Indira Institute of Management, Pune has with a modern system of practical training of repute and following management technique to the student as integral part of MMM. in according with the above obligation under going project in Hindustan coca cola Beverages Pvt. Ltd. Patliputra, Patna. The title of my project is A Project report on Effectiveness of Channel of distribution of Pepsi product in Patna Certainly this analysis explores my abilities and strength to its fullest extent for the achievement of organization as well as my personal goal. When Mr. Rajeev Gandhi came into the power as Prime Minister of India, then it was expected the liberalization of Indian economy. This was the expectation of his modern concept regarding every walk of life. Despite love for ones own motherhood and traditional concept of Indian people it was assumed that it is very hard to make and create taste and preference about soft drinks but despite of having so many confusion, no one was able to assume such a wide aspect Coca-

cola that has got not only a place in Indian hospitality, but also taken place of traditional sharbat of lemon and sugar. And needless to say Generation next has become the slogan of the day. In India, Coca cola was the leading and favorite soft drink till 1977 when government policies necessitated its departure. Coca cola returned to India after 16 years absence on Oct 24th 1993 with its launch in Agra. An agreement on March 1993, with the Parle group gave the company instant ownership of 53 bottling plant network and 2 bases for the rapid introduction of the companys international brands. This network recognizes Indias largest soft drink bottling and distribution infrastructure reaching out in India consumers though more than 300,000retails outlets spread across the country. Coca-cola India Pvt.. Ltd. Is a large organization. It has 62 bottling plants in India. Geographically the organization has been divided into four divisions.

Bharat coca cola North West Pvt. ltd. Bharat coca cola south west Pvt. ltd. Hindustan coca cola north east Pvt. ltd Hindustan coca cola south east Pvt. ltd.

1.2 IMPORTANCE AND RELEVANCE OF THE STUDY

Cold drinks were started with the idea of quenching the thirst of the persons traveling. It was also felt that reliable good water was not available everywhere. So people would really on their packed bottle and with this idea its makers made these drinks available mostly, at those places where water was not available i.e. on highways and long distance trains.

CHAPTER 2

INDUSTRY PROFILE

2.1 A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG) 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 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 had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive 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 manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian

region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March) FMCG sector in India has been experiencing a phenomenal pace of growth since last decade owing to increasing consumer incomes and rapidly changing consumer tastes and preferences. Large scale and low cost production, modern retailing strategies, branding and maintenance of intense distribution network have given FMCGs an edge over others in raising hovering revenues. At present Indian FMCG sector is worth Rs. 1300 billion and expected to be around a whopping value of Rs. 4000 to Rs. 6000 billion by 2020. Henceforth FMCG and its closest companion Retail sector, both are likely to create most of the jobs in India in the coming years primarily in functions like marketing, sales, advertising, supply chain, logistics, human resources, product packaging and development, finance, operations, general management, supervising and so on. THE TOP 10 COMPANIES IN FMCG SECTOR Sr. No. Companies 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

These companies are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk. Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space.

The FMCG sector consists of the following categories: Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; The major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and

Procter & Gamble. Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito

repellents, Metal polish and Furniture polish; The major players being; Hindustan Lever Limited, Nirma and Ricket Colman. Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Icecreams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; The major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur, spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

2.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

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

CHAPTER 3

COMPANY PROFILE

3.1 HISTORY
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-coloured 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 today wherever CocaCola is enjoyed. Dr. Pembertons partner and book-

keeper, Frank M. Robinson, suggested the name and penned Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings, with the suggestions Drink added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an

entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-Cola, used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Companys incorporation, Mr. Candler announced in his annual report to share owners that Coca-Cola is now drunk in every state and territory in the United States.

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

3.2 MANIFESTO FOR GROWTH

3.2.1 VALUES: The values that the employees in the Company are expected to keep up to and work by regularly are as follows: LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and zeal, to deliver outstanding results. INNOVATION: To continuously strive for progress and reach the next level of excellence in everything we do. PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding performance.

TEAMWORK: To unite for greater strength and work collectively as a group towards the achievement of common goals. OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the lowest appropriate level. ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets and goals. 3.2.2: MISSION To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to; To refresh the world in body, mind, and spirit To inspire moments of optimism, through our brands and our actions To create value and make a difference everywhere we engage. Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use of finished drinks Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic value added Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of system-wide team work, flexible business system and continuous improvement. Indian society in the form of a contribution to economic and social development.

3.2.3 VISION FOR SUSTAINABLE GROWTH To provide exceptional strategic leadership in the Coca-Cola India System resulting in consumer and customer preference and loyalty, through Coca-Colas commitment to them and in a highly profitable Coca-Cola Corporate branded beverages system. PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities. PEOPLE: Being a great place to work where people are inspired to be the best they can be.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples Desires and needs. PARTNERS: Nurturing a winning network of partners and building mutual loyalty. PLANET: Being a responsible global citizen that makes a difference.

FIGURE 1: VISION FOR SUSTAINABLE GROWTH

3.2.4: QUALITY POLICY To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processes every time.

3.3 HINDUSTAN COCA-COLA BEVERAGES Pvt.. Ltd. (HCCBPL)

3.3.1: ABOUT THE COMPANY 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 Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parles plants and a

well set bottling network, an excellent base for rapid introduction of the Companys International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its reentry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which 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 and pushcarts. Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to Aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.

FIGURE 2: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA Coca-Cola Timeline 1886 - Coca-Cola invented 1923 - Woodruffs initiatives of Personal Training, Better Service and Quality Products introduced 1929 - Foreign Sales Group formed for global expansion 1945 - Coca-Cola established as a global brand 1952 - Coca-Cola was introduced in India 1960 - Fanta and Sprite introduced 1970 - Focus on marketing 1980 - The Coca-Cola system stabilized 1993 - Coca-Cola re-enters India 2004 - E. Neville Isdell rolls out MFG(Manifesto For Growth)

ORGANIZATION STRUCTURE IN COCA-COLA

ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

3.3.2 MANUFACTURING PROCESS AT HCCBPL

The manufacturing of the products of Coca-Cola involves the following steps: Water is received from the River Cauvery and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water. In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with the sugar syrup. Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product. On the other hand, simultaneously, the returnable glass bottles are depalletised, inspected and washed for the purpose of filling in the final product in it. The product is finally filled in the bottles, crowned (in case of RGB), labelled and cased in order to be sent into the warehouse for distribution.

An efficient distribution network in FMCG has a base of a well managed production capacity

3.4.1 DISTRIBUTION NETWORK HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them.

A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --Retail Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.

3.4.1 DISTRIBUTION ROUTES The various routes formulated by HCCBPL for distribution of products are as follows: Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc. Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. General: Under this route, all the outlets that come in a particular area or an area along with its neighbouring areas are catered to. The consumption period is not taken into consideration in this particular route.

3.4.2 DISTRIBUTION SYSTEM Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level. Indirect distribution: In indirect distribution, an organization which is not part of the

Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management) Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

3.4.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS The Distribution process mainly consists of three departments: Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up. Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances. Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.

3.5 COMPETITORS TO HCCBPL

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 archrival, the Coca-Cola Company never ends for the World's # 2, carbonated soft drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange 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 belongs to Pepsi.

Nestl: 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 closest substitutes to the Colas 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, is one of the most trusted brands as it has been operating 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.

SWOT ANALYSIS

PRODUCT PROFILE

3.6 PRODUCTS: The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-Cola Company has a wide range of products out of which the following products are marketed by HCCBPL: In the Cola Section:

In the Lemon section:

In the Orange section:

In the Juice section:

In the Soda Water and Bottled Mineral Water section:

CHAPTER 4

OBJECTIVES & SCOPE

4.1 OBJECTIVES OF THE PROJECT:

To map available marketing channel of HCCBPL in Patna. To find the comfort level of the dealers with the current distribution system To find the lacunas in the current distribution system. To analyze level of satisfaction of retailers towards distributor. To find out level of penetration of Coca Cola with respect to other brand.

4.2 SCOPE:
Geographic: Patna city Study: Current organization work-culture Industry practical knowledge. Better awareness about market competition. Distribution channel efficiency Satisfaction level of retailers Brand penetration into market

CHAPTER - 5

RESEARCH METHODOLOGY

5.1 RESEARCH METHODOLOGY

The term Research is composed of two words Re and Search. Re means

again & again, Search means search about new facts. Thus the term Research can be defined as a careful investigation or enquiry specially to search new facts in any branch of knowledge. The term Research refers to the systematic method consisting of enunciating the problems, formulating the hypothesis, collecting the fact or data, analyzing the facts and reaching certain conclusion either in the form of solution toward the concerned problem or in certain generalization for some theoretical formulation. According to CLIFFORD WOODY, Research is a careful inquiry or examination in setting the facts or principle, a diligent investigation to ascertain something.

METHODOLOGY
Methodology is the systematic and objective identification, collection analysis, dissemination, and use of information for the purpose of improving decision making related to the identification and solution of problem.

During the course of conducting the study the information were gathered mainly through the primary sources. Conducting field survey by talking to the individual and the methodology used in the survey was personal observation and interview with the consumer with the help of questionnaire.

5.2 RESEARCH DESIGN

Research design is a plan,structure and strategy of investigation conceived so as to obtain answer to the research question and control varience.There are three type of research design system Exploratory research Descriptive research Causal research

Exploratory research:
Exploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.

Descriptive research:
Descriptive research design is a valid method for researching specific subjects and as a precursor to more quantitative studies. Whilst there are some valid concerns about the statistical validity, as long as the limitations are understood by the researcher, this type of study is an invaluable scientific tool.

Causal research:
Causal Research explores the effect of one thing on another and more specifically, the effect of one variable on another. The research is used to measure what impact a specific change will have on existing norms and allows market researchers to predict hypothetical scenarios upon which a company can base its business plan. Among the above mention type descriptive research applicable to this project.

Reason for selecting descriptive research:

Descriptive research are used to identify customer retention towards product, pack availability with big bazaars and to identify the impact on promotional scheme for the respective areas. It is also used to know the competitors value in the market.

5.3 SAMPLING PLAN

Since it is generally impossible to study an entire population (every individual in a country, all college students, every geographic area, etc.), researchers typically rely on sampling to acquire a section of the population to perform an experiment or observational study. It is important that the group selected be representative of the population, and not biased in a systematic manner. There are two types of sampling techniques:

1.

Probability sampling: Probability sampling is a sampling technique wherein the samples are gathered in a process that gives all the individuals in the population equal chances of being selected. It utilizes some form of random selection.

2.

Non- Probability sampling: Non-probability sampling is a sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

The most common sampling designs are simple random sampling, stratified random sampling, and multistage random sampling. Simple random sampling is the basic sampling technique where we select a group of subjects (a sample) for study from a larger group (a population). Each individual is chosen entirely by chance and each member of the population has an equal chance of being included in the sample. Every possible sample of a given size has the same chance of selection. There may often be factors which divide up the population into sub-populations (groups / strata) and we may expect the measurement of interest to vary among the different subpopulations. This has to be accounted for when we select a sample from the population in order that we obtain a sample that is representative of the population. This is achieved by stratified sampling. A multistage random sample is constructed by taking a series of simple random samples in stages. This type of sampling is often more practical than simple random sampling for studies requiring "on location" analysis, such as door-to-door surveys. In a multistage random sample, a large area, such as a country, is first divided into smaller regions (such as states), and a random sample of these regions is collected. In the second stage, a random sample of smaller areas (such as counties) is taken from within each of the regions chosen in the first stage. Then, in the third stage, a random sample of even smaller areas (such as neighbourhoods) is taken from within each of the areas chosen in the second stage. If these areas are sufficiently small for the purposes of the study, then the researcher might stop at the third stage. If not, he or she may continue to sample from the areas chosen in the third stage, etc., until appropriately small areas have been chosen.

Sample Universe:
Collection, population, or set of entities, items, or quantities(grouped together on the basis of common or defining characteristics or features) from which a representative sample is drawn for comparison or measurement.

Sample Frame:
A sample frame is the source material or device from which a sample is drawn. It is a list of all those within a population who can be sampled, and may include individuals, households or institutions.

Sample Unit:
A "sample unit" is typically thought of as an object that has been sampled from a statistical population. This term is commonly used in opinion polling and survey sampling. Sample Universe Sample frame Sample unit Sample size Sample techniques : : : Patna city Retailers of Patna Individual retailers selling cold drinks & consumers : : 250 respondents Non-Probability sampling

5.4 DATA COLLECTION

The task of data collection begins after a research problem has been defined and research design has been chalked out. While deciding about the method of data collection to be used for the study, the research should keep in mind two types of data viz. Primary and Secondary.

SOURCES OF DATA PRIMARY DATA:

The Primary Data are those, which are collected afresh and for the first time and thus happen to be original in character.

The observation method is the most commonly used method especially in studies relating to behavioral sciences. Questionnaire method is also very widely used in order to give a structure to the entire study.

SECONDARY DATA:
The secondary Data are those which have been already collected by someone else and which

have already been passed through statistical process. The Secondary Data regarding the project was given by the company which was a list of the outlets that were to be visited.

METHODOLOGY ADOPTED FOR RESEARCH

For this project, the method available was to get enough information through personal interaction with the outlet owners with the aid of a questionnaire. The collection of primary data requires considerable time. In this research the Primary data were obtained by actual working in the market and interacting with the outlet owners or managers who are involved in the process. The secondary data was a list of the outlets that were to be surveyed and was given by the company.

5.5 DATA ANALYSIS TECHNIQUE:

Data analyzed by tabulation, graphical presentation and charts

5.6 LIMITATIONS
Organization does not provide strategic information.

Organization does not give time and attention to the Management Trainees.

Time provide by institute i.e. 60 days is not sufficient to get practical knowledge.

Seasonality was the biggest threat because the duration of the project was in the summer. This is peak selling time for the company on the other hand in the rainy season the picture is different. That affects the sample size and also the sale.

Finding and analysis was for the specific area (Routes) only.

During the project we have to trust the dealers and their perception actual situation may vary.

CHAPTER - 6

DATA ANALYSIS & INTERPRETATION

6.1 SERVICE QUALITY PROVIDED BY THE DISTRIBUTOR

Following table and graph gives the information about the quality & efficiency in service provided by the distributor and the pre-seller to the retailers. It is classified as very good, good, ok, bad & very bad. [For questions 1, 2 & 3: 1 - Very Good 2 - Good 3 - Ok 4 - Bad 5 - Very Bad]

Table No:6.1.1 [Service Quality provided by the Distributor] Particulars Very Good Good Ok Bad Very Bad Service Quality 33 90 48 52 27 Percentage (%) 13 36 19 21 11

Graph No: 6.1.2 [Service Quality provided by the Distributor]

very bad bad ok good very good 0 10 20 30 40 very bad bad ok good very good

Interpretation:

Most of the retailers are very well satisfied with the service provided by the distributor where as very few has told bad to the quality of service provided.

6.2 SERVICE QUALITY PROVIDED BY THE PRE-SELLER

Table No:6.2.1 [Service Quality provided by the Pre-Seller] Particulars Very Good Good Ok Bad Very Bad Service Quality 45 63 83 35 24 Percentage (%) 18 26 33 14 9

Graph No: 6.2.2 [Service Quality provided by the Pre-Seller]

very bad

bad

very bad bad

ok

ok good

good

very good

very good 0 5 10 15 20 25 30 35

Interpretation: Only 18% of the retailers are very well satisfied with the service provided by the preseller, where as 26% of them feel that the quality of service provided is good & 33% of the retailers feel that the quality of service provided by the pre-seller is average and 23% of the retailers are not happy with the service. 9% of them feel completely dissatisfied by the service of the distributor pre-seller.

6.3 SERVICE EFFICIENCY PROVIDED BY THE DISTRIBUTOR

Table No:6.3.1 [Service Efficiency provided by the Distributor] Particulars Very Good Good Ok Bad Very Bad Service Quality 45 63 83 35 24 Percentage (%) 18 26 33 14 9

Graph No: 6.3.2 [Service Efficiency provided by the Distributor]

very bad

bad

very bad bad

ok

ok good

good

very good

very good 0 5 10 15 20 25 30 35

Interpretation: 33% of the retailers feel satisfactory enough by the quality of service provided. 26 % of them feel that the quality of service provided is good. 18% of the retailers are very well satisfied with the service provided by the distributor. 14% of the retailers are not happy with the service provided to them. 9% of them feel completely dissatisfied by the service of the distributor.

6.4 FREQUENCY OF SERVICE PROVIDED BY THE DISTRIBUTOR

Table No: 6.4.1 [Frequency of Service provided by the Distributor] Frequency Twice a week Weekly Fortnightly Infrequent Uncovered Outlets Service 107 55 13 30 45 Percentage ( % ) 43 22 5 12 18

Graph No:6. 4.2 [Frequency of Service provided by the Distributor]

50 45 40 35 30 25 20 15 10 5 0 Twice a week Weekly Fortnightly Infrequent Uncovered outlet Twice a week Weekly Fortnightly Infrequent Uncovered outlet

Interpretation:
The frequency of service for majority of the retail outlets is very good with 43% covering 107 of 250 outlets. This means that the majority of the retail outlets in the Patna are filled with Coca-Cola stock twice every week. This is followed by 22% of the outlets which are served weekly. However, the number of uncovered outlets is 45, which constitute 18% of the entire Patna region. This is quite a large number, which the distributor will have to take note of in order to improve his business.

6.5 SCHEMES PROVIDED BY THE DISTRIBUTOR Table No:6.5.1 [Schemes provided by the Distributor] Particulars Yes No Occasionally Uncovered outlets

Service frequency
53 78 75 45

Percentage ( % )
21 31 30 18

Graph No: 6.5.2 [Schemes provided by the Distributor]

service frequency %

18%

21% Yes No

30%

31%

Occasionally Uncovered outlets

Interpretation: This shows that the distributor does not provide enough schemes on a regular basis to the retail outlets. 31% of them do not receive any schemes, and 30% receive the schemes occasionally. Hence, only 21% of the retail outlets are well served which fetches them the majority of the business.

6.6 TIMELY AVAILABILITY OF REQUIRED ORDER

Table No:6.6.1 [Timely availability of required order] Particulars Yes No Uncovered outlets Service frequency 105 100 45 Percentage ( % ) 42 40 18

Table No:6.6.2 [Timely availability of required order]

service frequency %
18% 42% yes no 40% uncovered outlets

Interpretation:
42% of the outlets receive order as per required, whereas 40% of them do not receive orders as per required.

There is a good potential scope of improvement by the distributor in the areas of

uncovered outlets (18%) as well as those outlets which do not get the order as per requirement (40%)

6.7 MONTHLY SALES

Table No. 6.7.1 [Monthly sales] Brand Pepsi Coca cola Monthly sale (in carret) 32 68

Graph No. 6.7.2 [Monthly sales]

monthly sale

32%

pepsi 68% coca cola

Interpretation:
The sales for coca-cola products exceed the same for those of Pepsi products. However, the sale of coca-cola products is low as compared to its sale in the entire.

6.8 DISPLAY & MERCHANDISE PROVIDED BY THE DISTRIBUTOR

Table No. 6.8.1 (Merchandise provided by the distributor)

Particulars
Yes No Ocassionaly Uncovered outlets

Display Facilities
65 47 93 45

Percentage %
26 19 37 18

Graph No. 6.8.2 (Merchandise provided by the distributor)

40% 35% 30% 25% yes 20% 15% 10% 5% 0% yes no ocassionaly uncovered outlets no ocassionaly uncovered outlets

Interpretation:
This shows that the distributor does provide enough schemes on a regular basis to the retail outlets. 26% of them do receive sufficient display facility & merchandise; and also, 37% receive the schemes occasionally. Only 19% of the retail outlets are not well served.

6.9 GRIEVANCE REDRESSED BY THE DISTRIBUTOR

Table No: 6.9.1 [Grievance redressed by the Distributor]

Particulars
Yes No Only if pressurized Uncovered outlets

Display Facilities
47 73 85 45

Percentage %
19 29 34 18

Graph No: 6.9.2 [Grievance redressed by the Distributor]

40% 35% 30% 25% yes 20% 15% 10% 5% 0% Yes No Only if pressurized Uncovered outlets no only if presurised uncovered outlets

Interpretation:
34% of the respondents said that distributor provides grievances if the pressurized. 18% of the outlets are uncovered outlets.

6.10 OTHER PARTY PURCHASES

Table No: 6.10.1 [Other party purchases]

Particulars
Yes No Some times Uncovered outlets

Display Facilities
7 178 20 45

Percentage %
3 71 8 18

Graph No: 6.10.2 [Other party purchases]

80% 70% 60% 50% yes 40% 30% 20% 10% 0% Yes No some times Uncovered outlets no some times uncovered outlets

Interpretation:
71% of the total respondents have never approached other party. Only 3% of the retailers have ever approached other party for purchase.

CHAPTER - 7

OBSERVATION & FINDINGS

OBSERVATIONS & FINDINGS

The conclusions drawn from the project study are as follows:

There were total 250 outlets surveyed for checking the service provided by the distributor in the region of Patna. Majority of the retail outlets receive sufficient display facility & merchandise.

42% of the outlets receive order as per required, whereas 40% of them do not receive orders as per required. There is a good potential scope of improvement by the distributor in the areas of uncovered outlets (18%) as well as those outlets which do not get the order as per requirement (40%).

Approx 68% of the retailers are satisfied with the service provided by the distributor. Very few i.e., only 9 % respondents are fully dissatisfied with the services provided by the pre-seller.

18 % outlets are uncovered by distributor. 71 % of the total respondents have never approached other party for purchase.

CHAPTER -8

CONCLUSIONS

CONCLUSIONS

The major conclusions are.

Maximum retailers are satisfied with the services provided by the distributor. Most of the respondents told that distributor provides frequent service. Distributor does not provide enough schemes on a regular basis. Very few respondents have ever approached other party for purchase. There are 18% of the total outlets uncovered by the distributor.

CHAPTER 9

SUGGESTIONS

SUGGESTIONS
We can sum the recommendations in brief as follows:

Communications should be improved by fulfilling the demand of product by company. In the field, sales persons work independently and away from the office. Good communication requires interaction between those preparing and those receiving reports.

Company should make plans and impart training to the salesperson for better their performance.

Aggressive Marketing by market developer for increasing the sales volume.

Regular visit to distributors for better co-ordination.

Improve the market share by: providing efficient & effective distribution catering to busy retailers atleast 3 times a week widening the region(i.e. area of sales)

Company should adhere to and implement the customers suggestions and complaints about products, service policies, price changes, advertising, etc.

Increase in the number of sales vehicles.

Provide better schemes & services in order to gain market share.

REFERENCE

REFERENCE

BOOKS & MAGAZINES:

Monthly circular for the month of March, April, May and June HCCBPL Kumar, Aaker & Day, Essentials of Marketing Research 2nd Edition Kotler Philip & Keller Kelvin , Marketing Management, 12th Edition

INTERNET: http://www.coca-cola.com/index.jsp
http://www.thecoca-colacompany.com http://www.ko.com http://www.hoovers.com http://in.nielsen.com/site/index.shtml http://www.pepsico.com/Brands/Pepsi_Cola-Brands.html

ANNEXURE

ANNEXURE 1: Questionnaire
Name of the Shop: Location: Type of Monopoly: Rating Scale: (1 Very Good; 2 Good; 3 Ok; 4 Bad; 5 Very Bad.) Particulars 1) How is the service provided by the distributor? 2) How is the service provided by the sales staff? 3) How is the efficiency of the delivery by the distributor? 1 2 3 4 5 Shop Code: Visi Cooler Status: . CK/ PC .

4)

What is the frequency of the delivery? Twice a Week Fortnightly Weekly Infrequent

5)

Does the distributor give good schemes? Yes No Occasionally

6)

Do you get the order as per your requirement? Yes No

7)

What are your sales for Coca-Cola products for the month of May09(in Rs.)? 300 700 1100 1500 700 1100 1500 & above

8) What are your sales for competitors products (viz. Pepsi) for the month of May09(in Rs)? 0 400 800 1200 400 800 1200 & above

9)

Does the distributor provide you with display facilities such as banners, hoardings, menu, cooler, racks, etc? Yes No Occasionally

10)

Does the distributor respond to your grievances, if any, in a timely manner? Yes No Only if Pressurised

11)

Do you approach any other party (retailers, malls, etc.) for your purchases? Yes No Sometimes

12) If yes, whom do you approach? (in relation to question no. 11) Other Retailers ` Sub dealers Malls Others

ANNEXURE 2: GLOSSARY OF TERMS

Abbreviation
HCCBPL E&D RGB PET CK PC SH VG

Acronym
Hindustan coca cola beverages Pvt.. Ltd. Eating and Drinking Returnable Glass Bottle Polyethylene Terephthalate Coke Pepsi Shared Virgin