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PROJECT REPORT ON

“Study on RED activation and Sales and Distribution of


Coca-Cola Company in Jaipur region”

At

HINDUSTAN COCA COLA BEVERAGES PVT


LTD, JAIPUR (RAJ)

Submitted by
Lalit Kothari
17-028
PGDM(TPS)

Faculty Guide
Prof. Dr. Madhavi Pandya

Siva Sivani Institute of Management


Kompally, Secunderabad
(2008-2010)
ACKNOWLEDGEMENT

It gives me immense gratification to place on records my profound gratitude and sincere


appreciation to each and every one of those who have helped me in this endeavor. I am
ineffably indebted to my faculty guide Prof. Dr. Madhavi Pandya for her most valuable
and regular guidance without which my project would not have been completed.

I extend my sincere thanks to Mr. Ashvini Gurung, Area Sales Manager, Hindustan Coca
Cola Beverages Pvt Ltd for his valuable suggestions throughout the project.

I am also very much thankful to Mr. Manish Pandey, Sales Executive and Mr
Chandershekar Kausik, Market Development Executive for his continuous motivation
throughout this project, which really helped me in completing the project. I would also
like to thank the entire staff of Hindustan Coca Cola Beverages Pvt Ltd,Jaipur for their
cooperation and support.
Any omission in this brief acknowledgement may not be taken as lack of gratitude.

Date: (Signature)
Place: Lalit Kothari

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DECLARATION

I, Lalit Kothari declare that this project titled ―Study on RED activation and Sales and

Distribution of Coca Cola company in Jaipur region‖ has been completed by me at

Hindustan Coca Cola Beverages Pvt Ltd,Jaipur (Raj) under the guidance of Prof. Dr.

Madhavi Pandya, faculty, Marketing and Communication of Siva Sivani Institute of

Management. I further declare that this is my original work as part of my academic

course.

Date: (Signature)
Place: Lalit Kothari

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CONTENTS

AKNOWLEDGEMENT
DECLARATION
LIST OF TABLE

CHAPTER 1: INTRODUCTION…………………………………………3
Introduction

Objective of the study

Scope of the study

Significance of study

Literature review

RED concept

CHAPTER 2: PROFILES………………………………………………..11

Industry profile

Company profile

CHAPTER 3: METHODOLOGY......................................................…...39

Route Visit for Sales and Marketing

Method of Data Collection

Primary Data

Research Instrument

Area of Sampling

Sample Size

Sampling Procedure

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CHAPTER 4: ANALYSIS AND INTERPRETATION………………....43

Analysis of the data

CHAPTER 5: FINDINGS AND SUGGESTIONS…………………...….53

Findings

Suggestions

Conclusion

Bibliography……………………………………………………….57

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CHAPTER 1:
INTRODUCTION
Introduction

Objective of the study

Scope of the study

Significance of study

Literature review

RED concept

INTRODUCTION
Coca-Cola, the corporate nourishing the global community with the worlds largest
selling soft drink concentrates since 1886, returned to India in 1993 after a gap of
16 years giving a new thumbs up to the Indian Soft Drink Market. In the same
year, the Company took over ownership of the nation's top soft-drink brands and
bottling network.
Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and
vending machines in more than 200 countries.It is produced by The Coca-Cola
Company and is often referred to simply as Coke. Originally intended as a patent
medicine when it was invented in the late 19th century by John Pemberton, Coca-
Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft drink market throughout the
20th century.

The manufacturing of the soft drinks began in the 1830’s. However, evolution of
the soft drinks took place over a much longer period. The forerunners of soft
drinks began more than 2,000 year ago when Hippocrates, the ―Father of

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Medicine‖, first suspected that mineral waters could be beneficial to our well
being.

The soft drink industry was seasonal business in the early days, operating the
primarily during the summer months. Gradually, demand grew for soft drink to be
consumed in the home. Automatic vending machines began to appear in the
1920’s, one again changing the business of soft drinks. Vending machines and
fountain dispensers led the way to the expansion of soft drink to industrial outlets.
New technology helped soft drink bottlers meet going consumer demand by
significantly increasing the product availability. The mushrooming demand for the
product resulted in the growth of the soft drink industry. Inventors of the soft
drinks spread their products across by opening a few strategically placed bottling
facilities so franchise agreements.

Responding to consumer demand, industry rolled out soft drinks in cans and
introduces diet beverages to the market. Carriers were develop for convenience
and ease in taking soft drinks from the store to the home. Development of new
flavors, sale of cans products in vending machines and invention of polyethylene
Terephthalate (PET) bottles followed.

The soft drinks market in India till early 1990’s was in hands of domestic players
like Campa , Thums Up, Limca etc but with opening up of the economy and
coming of MNC players, Pepsi and Coke, the market has come totally under their
control.

Coca-Cola is the one of the biggest leading company in beverage sector in Jaipur
and its main competitor is Pepsi. In Jaipur, Coca-Cola is producing several brands
like Thumps up, Coca Cola, Sprite, Limca, Fanta and they have come with their
new brand Minut Maid Pulpy Orange. Pulpy orange is the sixty year old brand in
China but for India it is new. Apart from this company also produces products like
Kinley soda & water and Bonaqua new water brand.
Coca Cola distributes its products in Jaipur through a mix of different types of
retailers and outlets categorizing them as Convenience, Grocery and E&D.

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BRANDS OF INDIA

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Objectives of the study

 To know effectiveness of the marketing strategy, sales promotion &


distribution of Coca Cola in market.

 To know the market share of Coca-Cola.


 To ensure the availability and visibility of product.
.
 To study the ―RED‖ activation on outlets of COCA-COLA Company.

Scope of the study


Scope of the study for Coca-cola by this study the company will come to know:-

 To find out problem of the counters and to find out their requirement for
more sales.

 About market share of Company comparison to Pepsi.

 Through this study company will know about the availability of its products
in the Market.

 About RED activation score of outlets and what are the reasons for low
RED score.

Significance of the study

Significance of the study is following


 The project directly deals with interaction of different kinds of people. So
this project helps me to understand the corporate communication system.

 This study is helpful to find out the sales trends of the Coke products and
its effect on consumers value and satisfaction

 This study provides an insight to the company that what kind of strategy
must be adopted in order to increase the sales and satisfaction of
consumers.

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Literature Review
Control of market share is the key issue in this study. The situation is both Coke and
Pepsi are trying to gain market share in this beverage market, which is valued at over $30
billion a year. Just how this is done in such a competitive market is the underlying issue.
The facts are that each company is coming up with new products and ideas in order to
increase their market share. The creativity and effectiveness of each company's marketing
strategy will ultimately determine the winner with respect to sales, profits, and customer
loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi,
but they are also thinking of ways in which to increase market share in other beverage
categories. Although the goal of both companies is exactly the same, the two companies
rely on somewhat different marketing strategies. Both companies have also relied on
finding new markets, especially in foreign countries. In the foreign markets, Coke has
been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a
barter system that proved to fail. However, in certain countries that allow direct
comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the
marketing concept by offering products that meet consumer needs in order to gain market
share. Both companies cannot just sell one product; if they do they will not succeed. They
have to always be creating and updating their marketing plans and products. The
companies must be willing to accommodate their ―target markets‖. Gaining market share
occurs when a company stays one-step ahead of the competition by knowing what the
consumer wants. Apart from this study previous studies were based on the distribution
network and market share of some of these beverages companies. This study is based on
to find out the market share of coca-cola in some of the areas of Kanpur city.

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities.
Around the world, some local brands do compete with Coke. In India, Coca-Cola ranked
third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola
Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-
share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in
which there exists a United States embargo. Mecca Cola and Qibla Cola, in the Middle
East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-
Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are
major competitors to Coca-Cola. Coca-Cola Co. slightly increased its lead over rival
Pepsi-Cola Co. in 2002, thanks to the successful launch of Vanilla Coke and the growth
of Diet Coke, according to U.S. soft drink industry rankings released last week. Coke
gained 0.6 percentage points in market share and increased its case volume by 2.1
percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter
and data service. The company captured a larger share of the market even though its
Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates 44.3
percent of the U.S. soft drink market, but saw its market share drop between 1999 and
2001. With the latest gains, it's only 0.2 percentage points away from where it stood in
1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2 company
commands 31.4 percent of the U.S. soft drink market.

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In 1990, when Indian government opened the market to multinationals, Pepsi was the
first to come in. Thums Up went up against the international giant for an intense
onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie
stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending in
the Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named
MahaCola. This nickname gained popularity in smaller towns where people would ask
for "Maha Cola" instead of Thums Up. The consumers were divided where some felt the
Pepsi’s mild taste was rather bland.

In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But
Coca-Cola’s entry made things even more complicated and the fight became a three-way
battle. That same year, in a move that baffled many, Parle sold out to Coke for a meager
US$ 60 million (considering the market share it had). Some assumed Parle had lost the
appetite for a fight against the two largest cola brands; others surmised that the
international brands seemingly endless cash reserves psyched-out Parle. Either way, it
was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might
overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in
India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-
Cola started pulling out the Thums Up brand which at that time still had more than 30%
market share

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Concept of RED:
Right execution daily (RED) is the classification of outlets into Channel, Class,
Income.
Let’s know what are the Channel, Class, and Income respectively.

 CHANNEL - Type of outlet like E&D (EATING AND DRINKING),


GROCERY, or CONVINIENCE?

E&D 1- It includes Bakery/Sweet shops/QSR/Juice centers/Soft drink


shops/Tea shops etc.

E&D 2- It includes Sit down restaurants/Bars/Dhabas/Cafes etc.

GROCERY- Outlets primarily engaged in retailing of food and various


houses hold items.

CONVENIENCE-Includes outlets which are small stores and shops,


generally accessible locally.

 CLASS -Standard class of outlets like SILVER, GOLD or DIAMOND?


SILVER- Those outlets which sells 200-499 crates per year.

GOLD- Those outlets which sells 500-799 crates per year.

DIAMOND- Those outlet which sells 800 & above crates per year.

 INCOME – Locality income group of outlets like HIGH, MEDIUM AND


LOW.

HIGH- Those outlets where high income customer comes.

MEDIUM- Those outlets where medium income customer comes.

LOW- Those outlets where low income customer comes.

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CHAPTER 2:
PROFILES

Industry profile

Company profile

INDUSTRY PROFILE
India’s one billion people, growing middle class, and low per capita consumption
of soft drinks made it a highly contested prize in the global CSD market in the
early twenty-first century. Ten percent of the country’s population lived in urban
areas or large cities and drank ten bottles of soda per year while the vast remainder
lived in rural areas, villages, and small towns where annual per capita
consumption was less than four bottles. Coke and Pepsi dominated the market and
together had a consolidated market share above 95%. While soft drinks were once
considered products only for the affluent, by 2003 91% of sales were made to the
lower, middle and upper middle classes. Soft drink sales in India grew 76%
between 1998 and 2002, from 5,670 million bottles to over 10,000 million (See
Exhibit 6) and were expected to grow at least 10% per year through 2012.28 In
spite of this growth, annual per capita consumption was only 6 bottles versus 17 in
Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States29.
With its large population and low consumption, the rural market represented a
significant opportunity for penetration and a critical battleground for market
dominance. In 2001, Coca-Cola recognized that to compete with traditional
refreshments including lemon water, green coconut water, fruit juices, tea, and
lassi, competitive pricing was essential. In response, Coke launched a smaller
bottle priced at almost 50% of the traditional package.

Carbonated Soft Drinks

At the core of the beverage industry is the carbonated soft-drink category. The
dominant players in this area (Coca Cola, Pepsi, and Cadbury-Schweppes) own

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virtually all of the North American market’s most widely distributed and best-
known brands. They are dominant in world markets as well. These companies’
products occupy large portions of any supermarket’s shelf space, often covering
more territory than real food categories like dairy products, meat, or produce. As
with many mature retail industries, the beverage giants have a problem – growth in
the sales of their flagship carbonated products are at a near standstill in the key
U.S. market, with 1% growth or less. After years of rapid growth, it seems that
the average American can’t drink any more flavored, fizzy soda water. To remedy
that, these three companies are rapidly expanding both globally as they enter and
promote new markets for existing products and locally, as they add products from
adjacent beverage categories in the supermarket, in categories that are still
expanding. We'll talk about these areas in a later posting.

The prototype of all marketing and branding struggles, the ―Cola Wars‖ keep
expanding. The Pepsi and Coca Cola keep rolling out the big guns: dueling pop
stars, and new branded products in the form of ―Vanilla Coke‖ and ―Pepsi

Blue.‖ . They are fighting on the TV, in the fast-food restaurants, and in the
supermarkets; they are also dueling in the schools. One of the biggest pushes of
the last few years has been convincing school districts, universities, and other
institutions to go all-Coke or all-Pepsi, in return for a (small) cut of the gross sales.

Selling costly sugared water and building an increasing demand for it, even in
Third World countries, involves marketing in its purest form, unsullied by any
preexisting need or local tradition. Markets in Eastern Europe, China, India, and
Mexico, among others, are expanding fast, and both Coke and Pepsi are finding
local partners (bottlers) in these countries to keep extending their reach. And
while the American market may be mature, there’s still an opportunity worldwide
to replace hot beverages like coffee and tea that require some preparation with
these cold, iconic.

All this worldwide activity can’t disguise an unpleasant core reality for the
vendors: U.S. carbonated soft drink sales increased only 0.5% in the year 2002.
Although total sales for the industry was up slightly, per capita consumption was
down for the third year in a row In other words, domestic soft drink growth is not
keeping pace with population growth.

Overall soda market

In fact, Coke and Pepsi have a third major rival on the bottled soft drink shelves,
namely Cadbury-Schweppes. The big three carbonated beverage makers now exist

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in a stable oligopoly those changes only by small increments and which controls
over 90% of the market. Over the years, Cadbury-Schweppes (the result of a
merger between a British candy company and a British beverage company) has
improved its position by acquiring key brands in the US, namely Dr. Pepper and
Seven-Up, along with A & W and Canada Dry.

In past decades, the carbonated beverage section had been the beneficiary of an
amazing record of growth, where consumption has more than doubled over the
past 25 years. Americans consume twice as much soda as they did 25 years ago,
up from 22 gallons per person per year to over 56.

In 2000, these three companies had almost exactly the same share of the U.S.
market they had in 1999, namely:

Company
Percentage Brands
Coca Cola 44.1% Coke, Sprite, Barq, Fanta, Mello Yello, etc.
PepsiCo 31.4% Pepsi, Mountain Dew, Mug, Slice, etc.

While individual flavors go up and down, the relative market share of the big three
changes at a glacial rate. The next biggest North American soda company, the
Canadian-based Cott Beverage Company, had only a little over 3% of the market
and that company specialize in supplying private label soda to supermarkets and
other chains.

In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to


battle against the big guys. This gave the company more shelf position and
immediately gave the RC Cola brand, long a distant also-ran with weak marketing
muscles, more sales and market presence. Pepsi gave itself a small boost because
of the popularity of newly introduced Mountain Dew Code Red, a hyper-
caffeinated soda. Coke’s numbers declined slightly. The market share figures in
2001.

Company Percentage
Coca Cola 43.7%
PepsiCo 31.6%
Cadbury/Schweppes 15.8%

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It’s pretty indicative of this mature market that the only major move in market
share comes through a takeover. Moreover, the takeover targets that are left are so
small that the biggest remaining brand doesn’t make more than 1% difference in
total volume.

New age beverages

In the last part of our look at the beverage business, we noted that oligopolies
Coca Cola, PepsiCo, and Cadbury Schweppes had "flooded" a mature market, so
that there was minimal growth potential in the carbonated beverages category. So,
how can these companies grow, something all oligopolies are compelled to
do? First, by expanding internationally. Second, by acquiring or adding new
products in other beverage areas, which show both faster growth and less well-
defined competition. In fact, other beverage types have only in the last decade
come into focus as separate, important categories.
So the search for new beverage footholds has become the second front of the Cola
Wars. There is a scramble for new territories in beverage shelf space, and Coke
and Pepsi are investing heavily.

These alternative beverages areas were established by startup or small cap


companies, including Snapple and Arizona Iced Teas, Ocean Spray and Nantucket
Nectars, SoBe and Calistoga. The emerging categories began to look like both a
threat and an opportunity for the big three. In 2001, according to Beverage Age
Magazine. The segments of alternative or "New Age" beverages ranked by order
of sales, were:

Bottled water in clear plastic containers


Mildly flavored water (Clearly Canadian, Veryfine, Acqua Vie)
Fruit juices and drinks (some shelf-stable, like Ocean Spray, Mott's,
DelMonte; some refrigerated, like Nantucket Nectars, Tropicana)
Sports and energy drinks (Gatorade. Powerade, SoBE Power, Red Bull, G-
Up)
Iced tea (Snapple, Arizona, Lipton, Nestea)
Premium soda (Thomas Kemper Soda, Jones Soda)
Cold coffee drinks (Starbucks cappuccino drinks, PlanetJava, Arizona)
Vegetable/fruit juice blends, (V8, Odwalla)
Enhanced dairy drinks (Smooth Moos, Chocolate Moose Energy Shakes,
drinkable yogurt)
Soy-based and other non-dairy beverages (Odwalla, Health Source)
Other nutrient-enhanced beverages, so called neutriceutical beverages
(SoBe, Hansen, Naked Juice, Fresh Samantha)

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The problem with this market, like most emerging categories in the grocery
business, is an excess of vendors and products, making it hard for retailers to
decide who to assign their precious shelf space to. This is accompanied with an
even larger number of SKUs of different sizes and flavors, causing generally
chaos in the market.

That makes for a great opportunity for the oligopolists, who have entered into
these markets in a big way. We'll talk about the water category later, but here are
some of the other alternative brands now owned in the alternative market by the
carbonated Big Three. (The notation (lic.) denoted a beverage licensed from
another company.)

Cadbury-
Category Coca Cola Pepsico Notes
Schweppes
Lipton #1,
Nestea (lic. Lipton (lic.
Iced tea Snapple Nestea #2,
Nestle) Unilever)
Snapple #3
Gatorade #1,
Sports drinks Powerade Gatorade Mistic
Powerade #2
Health drinks KMX SoBe
Coffee Starbucks Starbucks #1,
Planet Java
Drinks (lic.) Planet Java #3
Minute Maid, Tropicana #1,
Refrigerated Tropicana; Nantucket
Odwalla, Fresh Minute Maid
Juices Dole (lic.) Nectars
Samantha #2
Orangina; Mott's;
Shelf-stable
Dole (lic.) Welch's (lic.);
juices
Clamato
Milk-based Yoo-hoo; Raging
drinks Cow
Soy-based Tropicana
drinks smoothies

Note that most of these products were bought or started in the last three years. The
big three already have the salesmen, the vending machines, the bottlers, the money
to advertise, and the international reach. With this power, they have managed to
take over a second aisle in the supermarket, along with a solid section of the
refrigerator case. And as we'll see, the biggest potential is in water.

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Bottled Water

The bottled water industry in North America is growing aggressively. It is the


fastest growing segment in the beverage industry (around 30% annually, compared
to 1% or so in carbonated beverages), and the cost of goods sold is almost
negligible. Once confined to Perrier and Evian sippers at fancy restaurants or
people with bad--tasting local tap water, there's been a tripling of US consumption
since 1985. As a recent FORTUNE magazine article put it,

The most brutal battle in the beverage industry is the one for dominance of bottled
water. With the niche growing at a 30% annual clip, bottled water will likely
catapult ahead of coffee and beer to become the second-best-selling beverage--just
behind soft drinks--by 2005. (Currently bottled water's barely ahead of No. 5
milk).

Another article in Beverage Marketing notes the concentration of the market as


water gets to be a bigger deal.

Super marketers have revolutionizing the industry. Since the costs of buying and
holding shelf space is so expensive, the small, regional firms, which used to be
major water suppliers, are being priced out. The only companies that can get their
products on the shelves are the new water oligopolists, large national and
multinational companies. Four companies now dominate the North American
market for bottles water: Nestle, Danone, Coca Cola, and Pepsico.

Like other areas of the beverage market, water, once the province of small, local
spring bottlers and a few European importers, has now become an oligopoly.
While Nestle (originally a Swiss chocolate company) and Danone (originally a
French dairy firm) have been in the market for a while, Pepsi and Coke are
Johnnies-come-lately to the market, Pepsi in 1995 and Coca Cola in 1999. But
they have so much marketing savvy, power in the distribution and bottling area,
and store presence, that they have made their two brands, Aquafina (Pepsi) and
Dasani (Coke), the top two selling brands in the US market. That's in spite of the
fact that, unlike most of the competitors, these are simply filtered and bottled local
tap water. Yet bottles of the either of these essentially free liquids sell for almost
the same a similar container of soda or iced tea. Not a bad business to be in!

Both companies use their vast experience in associating drinks with lifestyle,
sharpened during the cola wars. They are ramping up their ad budgets and getting
significant growth in volume as they do so. And they have a big opportunity.
According to estimates, one third of American households have never tried bottled
water, and carrying around a bottle of water has become a status symbol for many
younger Americans.

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Nestle is in fact the overall market leader, with $2.5 billion overall in water sales.
It sells a number of brands that are popular in various regions of the country, such
as Poland Spring in the Northeast. Arrowhead and Calistoga in California, and so
on. These are actual spring waters that have to be trucked to the bottler. Nestle
also sells Perrier, San Pelligrino, and some other European imports.Danone is
number four in volume, with its imported Evian, Volvic, and others, along with
Naya and Sparkletts from the U.S. Of the big four, Danone is the one that is
sinking, losing sales to the others. In fact, they just signed an agreement with Coca
Cola to market and distribute several of its brands in the US, including Dannon
and Sparkletts, and some economy brands. Evian and other European brands will
not be affected.

In 2002, these four companies had achieved over 60% of the water sales in the US,
and that was rapidly expanding. Only two competitors have shares over 2%:
Suntory Group (part of a Japanese conglomerate) and independent Crystal Geyser.
Our guess is that minor brands will more and more be crowded off the shelf. (By
the way, Cadbury-Schweppes has a limited water role at present.)

Supermarket sales of cases of water are starting to show competition, as Nestle,


Coke, and Pepsi are starting to compete on price as a Wall Street Journal report
noted. Coke and Pepsi are trying to avoid a water version of the cola wars, in
which they battled it out with price, cuts in the supermarket aisle. That's why
they're concentrating some 60% to 70% of their sales in the lucrative business of
selling single, cold bottles in convenience stores or vending machines.

But the next step is differentiating waters by making them vitamin-enriched


nutriceutucals. Pepsi, through its Gatorade subsidiary, now offers Propel,
enhanced with vitamins and minerals. It is also selling something called Aquafina
Essentials, which is flavored water (some sugar added), doubtless a healthy drink.
Coke is selling Dasani Nutriwater, a similar gimmick. Even the water category,
only recently discovered by these companies, is now spawn new categories,
opening new fronts in the cola wars.

Company Select Brands


Perrier, Poland Spring, Arrowhead, Deer Park, Zephyrhills, Ozarka,
Nestle
Ice Mountain, Calistoga, Vittel, San Pellegrino, Acqua Panna, Vittel
PepisCo Aquafina
Coca-
Dasani
Cola
Evian, Volvic, Dannon, Naya, Ferrarelle, Sparkletts, Pure American,
Danone
Castle Rock

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COMPANY PROFILE

Headquarters: One Coca-Cola Plaza


Atlanta, GA 30313
Employees: 71,000
CEO: Neville Isdell
Stock Symbol: KO

Website: http://www.coca-cola.com/

Coca-Cola is the world's leading beverage company. The company is the world's
leading manufacturer, marketer, and distributor of nonalcoholic beverage
concentrates and syrups, used to produce nearly 400 beverage brands.

The company makes and distributes sodas, waters, fruit juice, teas and coffees and
energy drinks. Through the world's largest beverage distribution system,
consumers in more than 200 countries drink the company's beverages at a rate
exceeding 1.5 billion servings each day.

Major brands include Coke, Diet Coke, Sprite, Bacardi, A&W, Minute Maid,
Dasani, Nestea, Powerade and Hi C.

In 2007, revenues were $28.8 billion, a 20% increase from the previous year, and
net income was $5.9 billion. Unit volume increased 6%.

In 2007, the company said it will acquire Energy Brands, Inc., known as glacéau,
and its full range of fast-growing, enhanced water brands, including Vitamin
Water for $4.1 billion.

Coca-Cola announced in September it is investing more than $60 million to build the
world's largest plastic-bottle-to-bottle recycling plant and support recycling in the U.S.
These investments are part of a comprehensive goal to recycle or reuse 100 percent of the
Company's plastic bottles in the U.S.

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PLANTS OF INDIA

Beverage Bottling Plant of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. at


Jaipur (Rajasthan, India)

Beverage Bottling Plant of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. at


Ghaziabad, Goa, Bangalore and Vijayawada (India)

Hindustan Coca-Cola Beverages Pvt. Ltd. at Vijayawada

MFG. PROCESS OF COCA-COLA PRODUCTS

INGREDIENT DELIVERY

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

Secret Formula
Created in special concentrate plants, it's delivered, held and used under strict
controls to maintain its integrity and security. Each unit of concentrate is
especially identifiable to allow the "history" of each component to be researched at
any stage of production, storage or use.

CO2 Formula
When delivered to the plant, carbon dioxide, or CO2, comes in cylinders for easy
delivery and storage. But what is it? In essence, it's a colorless and odorless gas
that provides the "fizz" for our beverages. But it's also a by-product of our
breathing and used by plants and trees to produce oxygen.

21
Water
Since water is a key component to all our beverages, its quality is critical. And,
since public water quality varies around the world, each plant further treats the
water it uses. This means that before water is added to any of our beverages; it's
rigorously filtered and cleansed. We then continuously sample the water to ensure
it meet our standards.

Materials
Ingredients are not the only things delivered to the plant. Other materials such as
bottles, cans, labels and packaging are also delivered. Our plants in India use
refillable bottles, CANS, PET etc. in the Production Process, when bottles and
cans are delivered to the plant; they are carefully inspected to ensure that they
meet our exacting standards. Once these have passed initial inspection, they move
on to be washed and/or rinsed.

WASHING AND RINSING

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

MIXING AND BLENDING

H2O and Sugar


Mixing and blending begin with the steps of mixing pure water with refined sugar,
which creates simple syrup. The syrup is then measured for the correct amount of
sugar.

Secret Formula
Our secret formula is... still secret! That's right; the secret formula remains a
mystery to the millions of people in nearly 200 countries that enjoys our refreshing
beverages everyday. Even though we can't tell you the secret, you can be sure that
"LIFE TASTES GOOD" with Coca-Cola.

22
H20 and Syrup
With the syrup nearing its final state, we mix it with pure water, creating the
finished uncorroborated beverage. However, the water and syrup must be mixed in
right ratio. This is done by the beverage proportioning equipment. It accurately
measures the correct ratio for each and sends this mixture to the carbonator.

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

FILLING

Once all the ingredients have been mixed and blended and the bottles have been
cleaned and sanitized, we're ready to start filling. This is a surprisingly complex
process requiring precision at each step. To begin with, bottles must be carefully
timed as they move to the filler - synchronization is key. Once at the filler, bottles
are either held securely in place by flexible grippers or precisely placed under
filling valves by centering devices. Before the bottles can be filled, the inside of
the bottles must be pressurized. This allows for the force of gravity itself to draw
the beverage into the bottle - a process that ensures the smooth flow of liquid, with
little to no foaming.

CAPPING

Once filled, bottles are then capped. We use different caps for different bottles -
glass bottles are usually topped with a metal crown while "PET BOTTLES" are
topped with a plastic screw-top. Each cap type then moves through different parts
of the machine, which ensures each cap stays scratch free and is in the right
position to be precisely placed on the bottle. As quality and freshness are key, we
use a "no closure" detector during the capping process and a "go-no-go gauge" or
"torque meter" after the bottles has been capped. The "no-closure" detector checks
if a screw top or crowns has been placed on bottle. The process actually stops if
the detector doesn't find a closure. The "go-no-go gauge" checks for the proper
crown crimp and the "torque meter" checks to make sure the screw-top is good
and tight. If the bottle cap isn't just right, the beverages can become flat or be
affected in other ways. If this happens, the bottle is discarded.

23
LABELING

Once the bottles have been filled and capped, they move on to be labeled. A
special machine dispenses labels from large rollers, cuts them and place on the
bottles. For special labels such as commemorative bottles for football
championships, the labels are sent to the bottling plants for approval, and then
used for packaging. Depending on the occasion, some of these special bottles will
go only to the specific locations. For example, a national football championship
bottle will be sent only to the home town or state of the championship team.

CODING

The bottle is now ready to be coded. Each one of our beverages is marked with a
special code that identifies specific information about it. The codes simply identify
the date the beverages was bottled or canned. These codes identify the date, time,
batch no. and the MRP. Product coding allows us to ensure that u receive our
beverages at their flavorful best.

INSPECTION

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

PACKAGING

once our filled beverages have passed final inspection, they are ready to be
packaged for delivery. Generally, packing can refer to everything from the unique
"BOTTLE" and "CAN" designs, to label designs, to cardboard boxes and
containers, to plastic rings.
Because the needs and tastes of our consumers are so diverse, the packaging varies
depending on where the beverages are being sent.

24
WAREHOUSING & DELIVERY

In order to make sure the freshest beverages possible get to you, each warehouse
must efficiently manage the thousands of beverages cases produced each day.
Beverage organization is key, though it's the bottle and can coding that allow for
the necessary precision. From the warehouse, we load beverages onto our
distinctive trucks. Night and day, our trucks are delivering our refreshing
beverages to stores, soda fountains, and vending machines near you.

25
PRODUCT INTRODUCTION

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.
Coca-Cola returned to India in 1993 and over the past ten years has captured the
imagination of the nation, building strong associations with cricket, the thriving
cinema industry, music etc. Coca-Cola has been very strongly associated with
cricket, sponsoring the World Cup in 1996 and various other tournaments,
including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's
advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular
and had entered the youth's vocabulary. In 2002, Coca-Cola launched the
campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it
India's favourite soft-drink brand. In 2003, Coke was available for just Rs. 5 across
the country and this pricing initiative togetherwith improved distribution ensured
that all brands in the portfolio grew leaps and bounds.
Coca-Cola had signed on various celebrities including movie stars such as
Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities
like Vijay in the past and today, its brand ambassadors are Aamir Khan and
Hrithik Roshan.

Glass PET Can Fountain


500 ml, 1.5 L,
200 ml, 300 ml, 500
2 L, 2.25 L, 330 ml Various Sizes
ml, 1000 ml
500 ml + 100 ml

26
Strong Cola Taste, Exciting Personality

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.

Glass PET Can Fountain


500 ml, 1.5 L,
200 ml, 300 ml, 500
2 L, 2.25 L, 330 ml Various Sizes
ml, 1000 ml
500 ml + 100 ml

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 flavour soft drink in the country.

The success formula. 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.

27
Glass PET Can Fountain
500 ml, 1.5 L,
200 ml, 300 ml, 500
2 L, 2.25 L, 330 ml Various Sizes
ml, 1000 ml
500 ml + 100 ml

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 refers
hung taste encourages the today's youth to trust their instincts, influence them to
be true to who they are and to obey their thirst.

Glass PET Can Fountain


500 ml, 1.5 L,
200 ml, 300 2 L, 2.25 L,
330 ml Various Sizes
ml, 500 ml + 100
ml

28
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". Perceived as a fun youth brand, Fanta stands for its vibrant color,
tempting taste and tingling bubbles that not just uplifts feelings but also helps free
spirit thus encouraging one to indulge in the moment. This positive imagery is
associated with happy, cheerful and special times with friends.

Glass PET Can Fountain


500 ml, 1.5 L,
200 ml, 300 2 L, 2.25 L,
330 ml Various Sizes
ml, 500 ml + 100
ml

29
Maaza was launched in 1976. ere was a drink that offered the same real taste of
fruit juices and was available throughout the year. In 1993, Maaza was acquired
by Coca-Cola India. Maaza currently dominates the fruit drink category.

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

The current advertising of Maaza positions it as an enabler of fun friendship


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

Maaza was launched in 1976. ere was a drink that offered the same real taste of
fruit juices and was available throughout the year. In 1993, Maaza was acquired
by Coca-Cola India. Maaza currently dominates the fruit drink category.
Over the years, brand Maaza has become synonymous with Mango. This has been
the result of such successful campaigns like "Taaza Mango,Maaza Mango" and
"Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome,
natural, fun drink which delivers the real experience of fruit.

The current advertising of Maaza positions it as an enabler of fun friendship


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

Glass Tetrapak PET Fountain


Glass
200 ml, Tetrapak
125 ml, PET Fountain
1000 ml Various Sizes
200
250 ml,
ml 125
200 ml,
ml
1000 ml Various Sizes
250 ml 200 ml
30
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.

Minute Maid - A 62 year success story

The history of the Minute Maid brand goes as far back as 1945 when the Florida
Foods Corporation developed orange juice powder. The company developed a
process that eliminated 80 percent of the water in orange juice, forming a frozen
concentrate that when reconstituted created orange juice. They branded it Minute
Maid, a name connoting the convenience and the ease of preparation (In a minute).

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Minute Maid thus moved from a powdered concentrate to the first ever orange
juice from concentrate.

Minute Maid- One of the world's largest juice and juice drink brands

Over the years, through innovations and unmatched consumer experience provided
in over 60 countries, Minute Maid brand has clearly become one of the world's
largest juice and juice drink brands. The launch of Minute Maid Pulpy Orange in
India (starting with the south of the country) is aimed to further extend the
leadership of Coca-Cola in India in the juice drink category.

Available in two PET pack sizes

400 ml and 1 liters and 1.25 liters.

Trademark Registration of Coca-Cola


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.

Mission

“To refresh the world... In mind, body and spirit.


To inspire moments of optimism… through our brands and our actions.
To create value and make a difference… everywhere we engage.”

With the mission to refresh this world the coca cola company gear up the company
to reach its potential; mission is to create a growth strategy that bring good to the
world by refreshing people every day and inspiring them with optimism through
the brands and our actions

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Vision
More than a billion times a day, consumer chooses our brand of refreshment
because coca cola is...
“The Symbol of Quality
Customers and Consumers Satisfaction
A Responsible Citizen of the World”

The company asks 150 of top leaders to re-imagine The Coca-Cola Company.
This would result to lead company to a holistic vision that the company is working
to accomplish over the next 10 years.

Brands
A&W, Barq's, Caffeine Free Coca-Cola Classic, Caffeine Free Diet Coke,Cherry
Coke, Citra, Coca-Cola C2, Coca-Cola Classic, Crush, Dasani, DietBarq's, Diet
Cherry Coke,Diet Coke, Diet Mello Yello, Diet Sprite, Dr.Pepper, Fanta, Five
Alive,Fresca,Fruitopia, Georgia Coffee, Hi-C, MelloYello, Minute Maid, Mr. Pibb,
Nordic Mist, Odwalla, Powerade, Santiba,Simply Orange, Sprite, Surge, Tab ,
Pulpy orange.

Brands in India
Coca Cola , Thumps-up, Sprite, Limca, Fanta , Fanta Apple,Kinley, Maaza and
MMPO.

History of Coke
The Early Days Coca-Cola was created in 1886 by John Pemberton, a pharmacist
in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for
mental and physical disorders. The formula changed hands three more times
before Asa D. Candler added carbonation and by 2003, Coca-Cola was the world’s
largest manufacturer, marketer, and distributor of nonalcoholic beverage
concentrates and syrups, with more than 400 widely recognized beverage brands
in its portfolio. With the bubbles making the difference, Coca-Cola was registered
as a trademark in 1887 and by 1895, was being sold in every state and territory in
the United States. In 1899, it franchised its bottling operations in the U.S., growing
quickly to reach 370 franchisees by 1910.10 Headquartered in Atlanta with
divisions and local operations in over 200 countries worldwide, Coca-Cola
generated more than 70% of its income outside the United States by 2003.

The Coca-Cola Company (NYSE: KO)is the largest manufacturer, distributor


and marketer of non-alcoholic beverage concentrates and syrups in the world, and
one of the largest corporations in the United States. The company is best known

33
for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton
in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler
who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-
Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries
or territories.

The company operates a franchised distribution system dating back to 1889 where
TCCC only produces syrup concentrate which is then sold to various bottlers
throughout the world who hold an exclusive territory.

The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed


on the NYSE and is part of DJIA and S&P 500.

Coca Cola Company is one of the United States based company founded in the
year 1886. It is one of the world's leading manufacturer, marketer and distributor
of cola type’s products. The industrial type of the company comes under the
Beverages. The company's headquarter is situated at Atlanta. It has its worldwide
operation in more than 200 countries of the MAAZA

The company for the year 2002 was regarded as the company having highest
Brand value. The brand value was measured at 69,637,000,000 in terms of $.
Presently the company has more than 400 brands over the world.

The company employs approximately 55,000 peoples over the world. The net
income of the company as of the year ended on December 31, 2005 reached at $
4,872 millions.

Presently E. Neville Isdell is the Chairman, Board of Directors and the Chief
Executive Officer of the Company.

Overview

The Coca-Cola Company, incorporated in September 1919, is the manufacturer,


distributor and marketer of nonalcoholic beverage concentrates and syrups in the
world. Finished beverage products bearing its trademarks are sold in more than
200 countries. The Company markets nonalcoholic sparkling brands, which
includes Diet Coke, Fanta and Sprite. Its business is nonalcoholic beverages,
principally sparkling beverages, but also a variety of still beverages. The Company
manufactures beverage concentrates and syrups, which it sells to bottling and
canning operations, fountain wholesalers and some fountain retailers, as well as
finished beverages, which it sells primarily to distributors. The Company owns or

34
licenses more than 450 brands, including diet and light beverages, waters,
enhanced waters, juices and juice drinks, teas, coffees, and energy and sports
drinks. In addition, it has ownership interests in numerous beverage joint ventures,
bottling and canning operations, although most of these operations are
independently owned and managed.

On June 7, 2007, the Company acquired Energy Brands Inc. On February 22,
2007, the Company acquired the remaining 65% interest in Coca-Cola Bottlers
Philippines, Inc. During the year ended December 31, 2007, the Company
acquired a 50% interest in Jugos del Valle and a 34% interest in Tokyo Coca-Cola
Bottling Company. In 2007, it acquired glaceau, 18 German bottling and
distribution operations, Fuze and Leao Junior.

The Company sells the concentrates and syrups for bottled and canned beverages
to authorized bottling and canning operations. In addition to concentrates and
syrups for sparkling beverages and flavored still beverages, it also sells
concentrates (in powder form) for purified water products, such as Dasani to
authorized bottling operations. Its beverage products include Coca-Cola, Coca-
Cola Classic, caffeine free Coca-Cola, caffeine free Coca-Cola Classic, Cherry
Coke, Diet Coke (sold under the trademark Coca-Cola Light in many countries
other than the United States), caffeine free Diet Coke, Diet Coke Sweetened with
Splenda, Diet Coke with Lime, Diet Cherry Coke, Diet Coke Plus, Coca-Cola
Zero (sold under the trademark Coke Zero in some countries), Fanta brand
sparkling beverages, Sprite, Diet Sprite/Sprite Zero (sold under the trademark
Sprite Light in many countries other than the United States), Pibb Xtra, Mello
Yello, Tab, Fresca brand sparkling beverages, Barq’s, Powerade, Aquarius,
Sokenbicha, Ciel, Bonaqa/Bonaqua, Dasani, Dasani brand flavored waters,
Georgia brand ready-to-drink coffees (sold in Japan), Lift, Thums Up, Kinley,
Eight O’Clock, Qoo, Vault, Full Throttle and other products developed for specific
countries. In many countries (excluding the United States, among others), its
Company’s beverage products also include Schweppes, Canada Dry, Dr Pepper
and Crush.

The Company produces, distributes and markets juice and juice-drink products,
including Minute Maid juices and juice drinks, Simply juices and juice drinks,
Odwalla nourishing health beverages, Five Alive refreshment beverages, Bacardi
mixers concentrate (manufactured and marketed under license agreements from
Bacardi & Company Limited) and Hi-C ready-to-serve juice drinks. The Company
has a license to manufacture and sell concentrates for Seagram’s mixers, a line of
sparkling drinks, in the United States and certain other countries.

The Company has an exclusive master distribution agreement for Evian bottled
water in the United States and Canada, and for Rockstar, an energy drink, in most

35
of the United States and in Canada. In the United States the Company markets
Nestea and Enviga products under a sublicense agreement with Nestlé USA, Inc.
Multon, a Russian juice business (Multon) operated as a joint venture with Coca-
Cola Hellenic Bottling Company S.A., markets juice products under various
trademarks, including Dobriy, Rich and Nico, in Russia, Ukraine and Belarus.
Beverage Partners Worldwide (BPW), the Company’s joint venture with Nestle
S.A. (Nestle), markets ready-to-drink tea products under various trademarks,
including Yang Guang, Nagomi, Frestea, Ten Ren and Shi-Zen, in various markets
worldwide, other than the United States and Japan. During 2007, concentrates and
syrups for beverages bearing the trademark Coca-Cola or any trademark that
includes Coca-Cola or Coke (Coca-Cola Trademark Beverages) accounted for
approximately 53% of the Company’s total concentrate sales. In 2007, concentrate
sales in the United States (U.S. concentrate sales) represented approximately 24%
of the Company’s

Quality Is Our Highest Business objective


The Coca-Cola Company exists to benefit and refresh everyone it touches. For us,
Quality is more than just something we taste or see or measure. It shows in our
every action. We relentlessly strive to exceed the world's ever-changing
expectations because keeping our Quality promise in the marketplace is our
highest business objective and our enduring obligation.

Consumers across the globe choose our brand of refreshment more than a billion
times every day because Coca-Cola is. The Symbol of Quality
Customer and Consumer Satisfaction A Responsible Citizen of the World

Corporate Citizenship

The Coca-Cola Company believes our business has always been based on the trust
consumers everywhere place in us—trust that is earned by what we do as a
corporate citizen and by our ability to live our values as a commercial enterprise.
There is much in our world to celebrate, refresh, strengthen and protect.
Through our actions as local citizens, we strive every day to refresh the
marketplace, enrich the workplace, preserve the environment and strengthen our
communities.
At the heart of our business is the trust consumers place in us. They rightly expect
that we are managing our business according to sound ethical principles, that we
are enhancing the health of our communities, and that we are using natural
resources responsibly.

36
Coca-Cola Advertisements It’s the Real Thing

Advertising has played an important role in the success of company’s products


since first newspaper ad in 1886, which read, "Coca-Cola. Delicious! Refreshing!
Exhilarating! Invigorating." The Company uses advertising to trigger desire as
often and in as many ways as possible. Throughout the years, slogans for Coca-
Cola have always been memorable.

Here are some highlights:


2000 - Coca-Cola Enjoy
1993 - Always Coca-Cola
1990 - Can t Beat the Real Thing
1989 - Can t Beat the Feeling
1986 - Red, White and You
1982 - Coke Is It
1976 - Coke Adds Life
1971 - I d Like to Buy the World a Coke
1969 - It s the Real Thing
1963 - Things Go Better with Coke
1959- Be Really Refreshed
1944- Global High Sign
1942- It s the Real Thing
1936- It s the Refreshing Thing To Do
1929 - The Pause That Refreshes

Revenue

According to the 2005 Annual Report, the company sells beverage products in
more than 312 countries or territories. The report further states that of the more
than 90 billion beverage servings of all types consumed worldwide every day,
beverages bearing the trademarks owned by or licensed to Coca-Cola account for
approximately 4.5 billion. Of these, beverages bearing the trademark "Coca-Cola"
or "Coke" accounted for approximately 78% of the Company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed
as follows:

37% in the United States


43% in Mexico, Brazil, Japan and China

20% spread throughout the world

37
Coca cola in India

The Coca Cola got approval from the Government of India in July 1996 for setting
up a company (holding type) for investing US $ 700 Millions. In July 1997 the
holding company got permission for its bottling subsidiaries. The company has
stepped forward for reaching 300 millions soft drink consumers through 700,000
retail outlets In India.
The coca cola company in India has given a direct employment of over 7,000
peoples. Over the years the company has invested around US $827 Millions in
India. The company has also taken different initiatives in India for the social sector
development in the recent year’s sponsorship program.

Coca- Cola Company in Jaipur

This is the one of the biggest leading company in beverage sector in Jaipur also. In
the Jaipur the coca cola company is a manufacturing company. They are
producing several brands like Thumps up, Coca Cola, Sprite, Limca, Fanta, Mazza
and they have come with their new brand Minute Maid Pulpy Orange. Pulpy
orange is the sixty year old brand in China but for India it is new. Apart from this
company also produces products like Kinley soda & water and Bonaqua new
water brand.

Products and brands

The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides
its namesake Coca-Cola beverage. This includes other varieties of Coca-Cola such
as:

Diet Coke (introduced in 1982), which uses aspartame, a synthetic


phenylalanine-based sweetener in place of sugar
Diet Coke Caffeine-Free
Cherry Coke (1985)
Diet Cherry Coke (1986)
Coke with Lemon (2001)
Diet Coke with Lemon (2001)
Vanilla Coke (2002)
Diet Vanilla Coke (2002)
Coca-Cola C2 (2004)
Coke with Lime (2004)
Diet Coke with Lime (2004)

38
Diet Coke Sweetened with Splenda (2005)
Coca-Cola Zero (2005)
Coca-Cola Black Cherry Vanilla (2006)
Diet Coca-Cola Black Cherry Vanilla (2006)
Coca-Cola BlāK (2006)
Diet Coke Plus (2007)
Coca-Cola Orange (2007)
Summer Of US Coke Range (2007-2008)

39
CHAPTER 3:
METHODOLOGY

Route Visit for Sales & Marketing

Method of Data Collection

Primary Data

Research Instrument

Area of Sampling

Sample Size

Sampling Procedure

40
Research Methodology

Route Visit for Sales & marketing:


I visited the routs with the MD or Sales executive or with the Company’s and
distributor’s vehicle where they supply the products. There I observed the display
norms for outlets in all route & each type of outlet.
Every morning I went to one corresponding route & observed all techniques of
selling product to retailers also try to know the mentality of the consumers and
retailers.

I visited following towns:

1. DUDU

2. PADASOLI

3. RAMNAGAR

4. PHULERA

5. RINGUS

6. HARMADA

7. CHOMU

8. KHATU SHYAMJI

9. BHANKROTA

10. MAHLA

41
Data Collection

I have collected two types of data:


1- Primary Data
2- Secondary Data

1. Primary Data Collection:-


Here survey method of data collection is preferred which is very suitable to reach
the researchers motto.

 Research Instrument: - Printed questionnaire was used as the research


instrument to collect the required information.
 Area of Survey: - The survey was conducted in two towns of Jaipur district
Dudu and Phulera.

Sampling Plan: - Sampling plan consists of:


 Sampling Unit: - The retailer of grocery shop, general store, betel shop, was
selected from different places of Dudu and Phulera towns.
 Sample Size: - For this study I have taken sample size of 100 respondents
 Sampling Procedure: - Simple Random sampling procedure was followed.
 Sampling Method: - Data were collected by retailer survey. The retailers
are directly contacted and interviewed at their retail counter.

2. Secondary Data Collection:-


I have collected secondary data from company records. Any other kind of
secondary data has not been collected from the retailers. I have been providing
various details about the company.

42
Limitations:

Though this study was taken up with sincere effort to accomplish the objectives,
there were certain factors that held back the satisfactory completion of the same.

These factors include:

 The study being undertaken in the peak season of May month might not
have produced accurate data.

 Some retailers shown non-cooperative behavior at the time of data


collection for this study.

 The research was depend on the information provided by the respondents


(retailers). It may be biased or insufficient.

43
CHAPTER 4: ANALYSIS AND INTERPRETATION

Analysis of the data


Data are collected from two towns of Jaipur district:
Dudu (sample size of 50 outlets)
Phulera (sample size of 49 outlets)

Survey Analysis

The survey was conducted in different towns of Jaipur district. A total survey of
100 outlets was conducted. With the use of collected data I have tried to give the
answers of following questions:

1. How many outlets is KO exclusive, PC exclusive or Shared?


2. Market share of Coca Cola and Pepsi Company according to the sales
volume of month May, 2009.
3. Coca Cola and Pepsi empties (Cases bottles) available in the outlets?

4. Channels of outlets?

5. Availability of cooling systems in the outlets?

6. How many outlets are seasonal and permanent?

7. How many Drinking shots are available on outlets?

8. How many outlets have Racks?

9. Income class of the outlets?

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1. How many outlets is KO exclusive, PC exclusive or Shared?

Dudu

KO Exclusive
20%

KO Exclusive
PC Exclucive
Shared PC Exclucive Shared
62% 18%

INTERPRETATION
With the help of pie chart I have interpreted 62% outlets are selling Coke and
Pepsi both the brand (shared) and 20% outlets are selling only Coke brand
(exclusive).

Phulera

KO Exclusive
30%
Shared
40% KO Exclusive
PC Exclusive
Shared

PC Exclusive
30%

INTERPRETATION
With the help of pie chart I have interpreted 40% outlets are selling Coke and
Pepsi both the brand (shared) and 30% outlets are selling only Coke brand
(exclusive).

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2. Market share of Coca Cola and Pepsi Company according to the sales
volume of month May, 2009.

Dudu

PC
40%
KO

KO PC
60%

INTERPRETATION
According to pie-chart we can see Coca Cola Company is the market leader with
the 60% of the market share and Pepsi has only 40% market share in Dudu town.

Phulera

PC
35%
KO
PC
KO
65%

INTERPRETATION
As we can see in Phulera also Coca Cola Company is the market leader with the
65% of the market share and Pepsi has only 35% market share.

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3. Coca Cola and Pepsi empties (Cases bottles) available in the outlets?
Dudu

PC
371
39% KO
KO PC
578
61%

INTERPRETATION
It is clear from the chart that Coca cola has 61% empties comparing to 39% of
Pepsi.

Phulera

PC
76
33%
KO
PC
KO
151
67%

INTERPRETATION
As per chart it is clear that Coca cola has 67 % empties comparing to Pepsi.

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4. Channels of outlets?

Dudu

ED-2
Grocery
24%
29%
Grocery
Convenience
ED-1 ED-1
8% ED-2

Convenience
39%

INTERPRETATION
As per chart we can say that max 39% outlets are convenience and 29% outlets are
Grocery.

Phulera

ED-2
3%
Grocery
ED-1 19%
6%
Grocery
Convenience
ED-1
ED-2

Convenience
72%

INTERPRETATION
According to chart we can see that in Phulera town max 72% outlets are comes
under Convenience and 19% outlets come under Grocery.

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5. Availability of cooling systems in the outlets?

Dudu

KO-VC KO-VC
28% KO-CC
OWN
37% KO-OYA
PC-VC
KO-CC PC-CC
8% PC-OYA
KO-OYA OWN
PC-OYA PC-CC
PC-VC 8%
11% 2% 6%

INTERPRETATION
It is clear that 37% outlets have there own freeze, 28% outlets have Coca cola visi-
coolers and only 6% have Pepsi visi-coolers, 8% have Coca cola chest cooler and
only 2% have Pepsi chest cooler.

Phulera

KO-VC
15%
KO-VC
KO-CC
9% KO-CC
KO-OYA
KO-OYA
OWN 6% PC-VC
58% PC-OYA
PC-VC
6% OWN

PC-OYA
6%

INTERPRETATION
It is clear that 58% outlets have there own freeze, 15% outlets have Coca cola visi-
coolers and only 6% have Pepsi visi-coolers, 9% have Coca cola chest cooler and
only 6% have Pepsi chest cooler.

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6. How many outlets are seasonal and permanent?

Dudu

Seasonal
Seasonal
Permanent 47%
53% Permanent

INTERPRETATION
According to data in Dudu town 53% outlets are permanent and 47% outlets are
seasonal.

Phulera

Seasonal
39%
Seasonal
Permanent
Permanent
61%

INTERPRETATION
As per data 61% of outlets are permanent and only 39% outlets are seasonal.

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7. How many Drinking shots are available on outlets?

Dudu

PC
5
22%

KO
PC

KO
18
78%

INTERPRETATION
It is clear that 78% outlets have Coca cola’s drinking shots but only 22% outlets
have Pepsi Drinking shots.

Phulera

PC
4 KO
KO
44%
5 PC
56%

INTERPRETATION
As per data we can see that 56% of outlets have Coca cola’s drinking shots and
44% outlets have Pepsi’s drinking shots.

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8. How many outlets have Racks?

Dudu

PC
33%
KO
PC
KO
67%

INTERPRETATION
According to chart it is clear that 67% outlets have Coca cola’s rack but only 33%
outlets have Pepsi’s rack.

Phulera

PC
43% KO
KO PC
57%

INTERPRETATION
As per chart we can see that 57% outlets have Coca cola’s racks and 43% outlets
have Pepsi’s racks.

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9. Income class of the outlets?

Dudu

High
12%
Low
37%
Low
Medium
High

Medium
51%

INTERPRETATION
According to data shown in the chart we can see that maximum 51% outlets in
Dudu town comes under medium class,37% outlets comes under low category and
only 12% are in high class.

Phulera

High
5%
Medium
20%
Low
Medium
High

Low
75%

INTERPRETATION
As per chart it is clear that maximum 75% outlets comes under low category,20%
outlets comes under medium class and only 5% of outlets are in high class.

53
CHAPTER 5:

FINDINGS AND SUGGESTIONS

Findings

Suggestions

Conclusion

Findings:
 In Jaipur region Coca cola Company is providing less schemes to retailers
comparing to competitors. Some retailers are not satisfied with the schemes
provided by company

 On Phulera railway station most of the retailers are selling competitors


product. They have some demands which can be satisfied by the company.

 On some outlets Coke RGB cases are available but bottles are exchanged
by competitors, therefore coke suppliers are facing problem to provide
them RGB products due to lack of empties.

 Some activation things like racks and hanger are not enough in Dudu and
Phulera market.

 Thums up is the most selling brand of the company.


 Coke has been rapidly providing visi coolers to retailers at present 25 Coke
Visi-coolers are available in Dudu town.

 Coke’s RED concept is very effective, it ensure the availability of products


and activation on outlets.

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 In both of towns market share of Coke is more then its competitors.

 Company is facing competition with local brands like Captain, Toral.,


Jayanti etc. They are providing same products with low quality in low rates.

 There are electricity phase problem in Dudu area, so visi coolers need more
maintenance,
 I found that Fanta promotion programs which was held in Dudu and
Phulera towns is effective in order to make aware the peoples about the
product.

Suggestions:
 Company should increase its schemes because competitors are providing
almost double schemes comparing to coke.

 In winter company should provide more schemes to retailers in order to


increase the sales.

 Company should provide the special discounts on Phulera railway station


then they may be ready to sell the coke’s products. Because they are
permanent counters so it will help to company to maintain its sales in the
winter also.

 MDs and sales men should be given some more powers of decision making.
For example they can make their own strategy of marketing according to
situation of their territory.

 Proper display of products play important role in sales so company should


provide enough rakes, hangers and other tools to retailers.

 Company should make some strategy to compete with local cold drink
brands.

 Promotion program which was held for Fanta in Dudu and Phulera towns
should be done for other brands also.

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 Most of MDs are working on vertical expansion only; they should work for
horizontal expansion also.

Conclusion:

I have studied on topic ―RED activation and Sales and Distribution‖ of


Coca-Cola Company in Jaipur district’. The objective of my study was to
find out the market share of COKE in the comparison of the PEPSI, study
on RED concept and find out that how many outlets are selling the COKE
products. To study the RED concept I visited different routes in company’s
vehicle. I worked on RED in different towns with company’s MDs and
sales team leader.

Finally to know the market share of company I have taken two town’s
outlets to achieving my objectives i.e. Dudu and Phulera. I have taken 100
outlets as sample size of my study. I have collected primary data from
outlets by taking interview from them and secondary data taken from
company’s record. Then after I analyzed the data and interpret ended it.

During my study I found the most popular flavor in the market is cola, In
Dudu Market share of COKE (60%) is higher than PEPSI (40%) and in
Phulera also market of of Coke(65%) is higher then Pepsi(35%). Coca-Cola
is market leader and Pepsi is the market challenger in the whole market
where I have surveyed, Pepsi is providing more schemes than the Coca-
Cola, Sales has increased after locating visi cooler out side of outlet etc.
I have concluded that market share of Coca-Cola is higher than Pepsi and
almost all the outlets are selling the coke’s products.. After my study I can
suggest the company should work out early on their complains regarding to
visi cooler, Availability of visi cooler in the outlets should be increase so
that sale could increase, Company should give proper scheme to the outlets
and in the last I would like to say that Pepsi is far away from the Coke in
the competition.

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BIBILOGRAPHY:

INTERNET:

www.cokeiindia.com
www.coca-colaindia.com
www.oligopolywatch.com
www.superbrand.com

TEXT BOOK:

Marketing concepts & cases Etlzer, Walker & Stanton


Marketing Management Kotler and Keller

RESEARCH PAPER:

News & Magazine

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