Chapter 1

Introduction to the topic Need / Significance of Study

Objectives of study Scope of study Research design Limitations of the study

INTRODUCTION:
Retailer survey is to be done TO ASSESS THE EFFECTIVENESS OF
DISTRIBUTION CHANNEL OF COCA COLA At

isa!hapatnam" #he areas

selected in

isa!hapatnam are $aju%a!a& Simhagiri 'olony& A(emabad&

)ailashNagar& Nellmu!!u& *+ 'olony& R* 'olony& ,eeda $antyada& )ailash Nagar& Sanjeeva Nagar& +' 'olony& -ayal Nagar& etc" I have been given a project on
A STUDY TO ASSESS THE EFFECTIVENESS OF DISTRIBUTION CHANNEL OF COCA COLA CO.

#his project done for

'oca.'ola ,vt" Ltd" /ith their distribution points" 0ltimate objective of the every organi(ation is to satisfy the needs and %ants of their customer in %hich distribution channel plays a vital role " #he study %ill be done ta!ing 112 as the Sample Si(e" #he sampling method used is 3Stratified Random Sampling 3" #he source for conducting survey %as ta!en from the distributors Red Outlet List provided by the distributors in isa!hapatnam " #his study helps the organi(ation in the follo%ing %ay4 #o !no% performance of e5isting distribution channel #o !no% if there are any flo%s in the channel #o !no% their retailers satisfaction level %ith respect to the e5isting channel" In these I need to go every outlet to get some information regarding all the +rands of the Soft drin!s i"e" about their strategies& service& delivery problem& cooler problem i"e" %hether the company is providing or they using of their o%n" All these follo%ing 6uestions have been prepared based on the retailer7s prospective" #he coca.cola company is facing the problem %ith ,epsi as leading product for sale" So it focuses on the people those %ho live in near rural areas of isa!hapatnam in order to ma!e them stay %ith the product" 8or this issue
9

they introduced a concept called display of products in every individual outlet" #here %e faced a problem %ith language" 'oca.'ola is the most popular and biggest.selling soft drin! in history& as %ell as the best brand" On :ay ;& 9211< 'oca.'ola celebrated its 191th anniversary" 'reated in 1;;= in Atlanta& $eorgia& by -r" >ohn S" ,emberton& 'oca.'ola %as first offered as a fountain beverage at >acob?s ,harmacy by mi5ing 'oca.'ola syrup %ith carbonated %ater" 'oca.'ola %as patented in 1;;@& registered as a trademar! in 1;AB and by 1;A1 it %as being sold in every state and territory in the 0nited States" In 1;AA& #he 'oca.'ola 'ompany began franchised bottling operations in the 0nited States" 'oca.'ola might o%e its origins to the 0nited States& but its popularity has made it truly universal" #oday& you can find 'oca.'ola in virtually every part of the %orld"

NEED/SI NIFICANCE OF STUDY:

#he customer needs to !no% the place that %here it is comfortable and visible to the end user" All this are considered to be silly but ma!es a lot of difference in the minds of consumers" See& %e canCt e5pect the people only to buy coca.cola product that %e predict" Dven %e need to attract the consumer %here he steps into" So for that reason %e need to get the display in order to reach out of the each and every individual" #he main purpose of the survey %as to visit the outlets in a particular sub route and get as much information as possible" #o !no% the competitive position of 'oca cola brands and other brands such as ,epsi" #o !no% the most consumption pattern of the consumer the situation demand a mar!et analysis through survey %hich gives an over vie% of the mar!et in 6uantitative terms"

OB!ECTIVE OF STUDY:
3#he main objective behind this project is to study and understand distribution channel and its effectiveness in bringing products in right time to right customersE #o study the main objective the follo%ing are the necessities4 #he performance level of the e5isting distribution channel" #he cover area" ,roblems related to the e5isting channel" Satisfaction level of the customers FretailersG to%ards the e5isting distribution channel"

SCO"E OF THE STUDY:

#he mar!et survey for A STUDY TO ASSESS THE EFFECTIVENESS OF
DISTRIBUTION CHANNEL OF COCA COLA CO.

In

isha!hapatnam

city" #he scopes of study FsurveyG areas selected in

isha!hapatnam are

$aju%a!a& Simhagiri 'olony& A(emabad& )ailashNagar& Nellmu!!u& *+ 'olony& R* 'olony& ,eeda $antyada& )ailash Nagar& Sanjeeva Nagar& +' 'olony& -ayal Nagar& etc #he scope of study is to reach the places of the isha!hapatnam and ma!e them drin! FavailabilityG":y study deals %ith #*D D88D'#I DNDSS O8 -IS#RI+0#ION '*ANNDL O8 'O'A 'OLA 'O" products in each and every place especially to the areas selected in isha!hapatnam %hich includes the rural areas also" #his leads to generate lots of ideas regarding the ne% strategies to be adopted in the near future %hich help to increase in ,rofitability mar!et" #here is a change in the sales of coca.cola further"

RESEARCH DESI N AND #ETHODOLO Y:

1G ,rimary data collection 9G Secondary data collection 1G #he primary data collection can be done in t%o %ays" aG Intervie% bG Iuestioner 9G #he secondary data collection can be ta!en up by t%o %ays aG +y the reference of Sales e5ecutive Jchannel e5ecutive bG Internet Se$e%t&'( ') *ea+,re*e(t te%h(&-,e Iuantitative analysis& bar J pie chart "r&*ar. %'(+&/erat&'( ') +a*p$&(0 ."'p,$at&'(: Retailers of isha!hapatnam city .Sa*p$e )ra*e4 Selected areas in isha!hapatnam .Sa*p$e +&1e: 112 outlets .Sa*p$e p$a(: isit to every outlet in a selected area #eth'/ ') A(a$.+&+ Iuantitative

LI#ITATIONS OF STUDY:
#he study %as confirmed to isha!hapatnam city Limitation of time" #he project report conducted only in from places to places" isha!hapatnam area& it may differ

#he findings are based on the survey conducted in the month of >anuary

and :arch" +ut it differs in seasons" #he outlet o%ners may not give some true information related to other brands and may hide related information" #he bias of my !no%ledge ma!es me to get this detailed information %hich other may get more than this"

Chapter 2
Industry ,rofile

Organisational ,rofile

Or0a(&+at&'(a$ "r')&$e:

H&+t'r.:
'oca.'ola %as invented by -octor >ohn ,emberton a pharmacist from Atlanta $eorgia in :ay of 1;;=" >ohn ,emberton concocted the 'oca 'ola formula in a three legged brass !ettle< all this %as done in his bac!yard" #he name 'oca 'ola %as actually given to >ohn ,emberton by his boo!!eeper 8ran! Robinson" 8ran! Robinson had e5cellent penmanship" *e first scripted K'oca 'olaK into the flo%ing letters %hich has become the famous logo %e !no% and love today" #he soft drin! %as first sold to the public at the soda fountain in >acob?s ,harmacy in Atlanta on :ay ;& 1;;=" About nine servings of the soft drin! %ere sold each day" Sales for that first year added up to a total of about L12" #he funny thing %as that it cost >ohn ,emberton over L@2 in e5panses& so the first year of sales %ere a loss" 0ntil 1A21& the soft drin!& mar!eted as a tonic& contained e5tracts of cocaine as %ell as the caffeine.rich !ola nut"

Dr .!'h( "e*3ert'( In 1;;@& another Atlanta pharmacist and businessman& Asa 'andler bought the formula for 'oca 'ola from inventor >ohn ,emberton for L9&B22"+y the late 1;A2s& 'oca 'ola %as one of America?s popular fountain drin!s< 'andler?s aggressive mar!eting of the product ta!es credit for that" /ith Asa 'andler& no% at the helm& the 'oca 'ola 'ompany increased syrup sales by over H222M bet%een 1;A2 and 1A22" Advertising %as an important factor in >ohn ,emberton and Asa 'andler?s success and by the turn of the century& the drin! %as sold across the 0nited States and 'anada" 'oca 'ola began selling syrup to independent bottling companies licensed to sell the drin!" Still today& the 0S soft drin! industry is organi(ed on this principle" E4'$,t&'( ') C'%a C'$a

One afternoon& he stirred up a fragrant& caramel.colored li6uid and& %hen it %as done& he carried it a fe% doors do%n to >acobs? It %as 1;;=& and in Ne% Nor! *arbor& %or!ers %ere constructing the Statue of Liberty" Dight hundred miles a%ay& another great American symbol %as about to be unveiled" Li!e many people %ho change history& >ohn ,emberton& an Atlanta pharmacist& %as inspired by simple curiosity ,harmacy" *ere& the mi5ture %as combined %ith carbonated %ater and sampled by customers %ho all agreed ..this ne% drin! %as something special" So& >acobs? ,harmacy put it on sale for five cents a glass" Dmber ton7s boo!!eeper& 8ran! Robinson& named the mi5ture 'oca. 'olaO& and %rote it out in his distinct script" #o this day& 'oca.'ola is %ritten the same %ay" In the first year& ,emberton sold just A glasses of 'oca.'ola a day" A century later& #he 'oca.'ola 'ompany has produced more than 12 billion gallons of syrup" 0nfortunately for ,emberton& he died in 1;;; %ithout reali(ing the success of the beverage he had created" Over the course of three years& 1;;;.1;A1& Atlanta businessman As a $riggs 'andler secured rights to the business for a total of about L9&B22" 'andler %ould become the 'ompany?s first president& and the first to bring real vision to the business and the brand"

12

Asa $" 'andler& a natural born salesman& transformed 'oca.'ola from an invention into a business" *e !ne% there %ere thirsty people out there& and 'andler found brilliant and innovative %ays to introduce them to this e5citing ne% refreshment" *e gave a%ay coupons for complimentary first tastes of 'oca.'ola& and outfitted distributing pharmacists %ith cloc!s& urns& calendars and apothecary scales bearing the 'oca.'ola brand" ,eople sa% 'oca.'ola every%here& and the aggressive promotion %or!ed" +y 1;A1& 'andler had built syrup plants in 'hicago& -allas and Los Angeles" Inevitably& the soda?s popularity led to a demand for it to be enjoyed in ne% %ays" In 1;AH& a :ississippi businessman named >oseph +iedenharn became the first to put 'oca.'ola in bottles" *e sent 19 of them to 'andler& %ho responded %ithout enthusiasm" -espite being a brilliant and innovative businessman& he didn?t reali(e then that the future of 'oca.'ola %ould be %ith portable& bottled beverages customers could ta!e any%here" *e still didn?t reali(e it five years later& %hen& in 1;AA& t%o 'hattanooga la%yers& +enjamin 8" #homas and >oseph +" /hitehead& secured e5clusive rights from 'andler to bottle and sell the beverage ..for the sum of only one dollar"

11

Imitation may be the sincerest form of flattery& but #he 'oca.'ola 'ompany %as none too pleased about the proliferation of copycat beverages ta!ing advantage of its success" #his %as a great product& and a great brand" +oth needed to be protected" Advertising focused on the authenticity of 'oca.'ola& urging consumers to K-emand the genuineK and KAccept no substitute"K #he 'ompany also decided to create a distinctive bottle shape to assure people they %ere actually getting a real 'oca. 'ola" #he Root $lass 'ompany of #erre *aute& Indiana& %on a contest to design a bottle that could be recogni(ed in the dar!" In 1A1=& they began manufacturing the famous contour bottle" #he contour bottle& %hich remains the signature shape of 'oca.'ola today& %as chosen for its attractive appearance& original design and the fact that& even in the dar!& you could identify the genuine article" As the country roared into the ne% century& the 'oca.'ola 'ompany gre% rapidly& moving into 'anada& ,anama& 'uba& ,uerto Rico& 8rance& and other countries and 0"S" territories" In 1A22& there %ere t%o bottlers of 'oca.'ola< by 1A92& there %ould be about 1&222"

19

THE 5OODRUFF LE ACY 617178179:;

'oca cola enjoyed in 1B countries %orld%ide" It introduced = pac!s" In 1A91& =222222 drin!s per day" ,erhaps no person had more impact on #he 'oca. 'ola 'ompany than Robert /oodruff" In 1A9B& four years after his father Drnest purchased the 'ompany from Asa 'andler& /oodruff became the 'ompany president" /hile 'andler had introduced the 0"S" to 'oca.'ola& /oodruff %ould spend more than =2 years as 'ompany leader introducing the beverage to the %orld beyond" /oodruff %as a mar!eting genius %ho sa% opportunities for e5pansion every%here" *e led the e5pansion of 'oca.'ola overseas and in 1A9; introduced 'oca.'ola to the Olympic $ames for the first time %hen 'oca.'ola travelled %ith the 0"S" team to the 1A9; Amsterdam Olympics" /oodruff pushed development and distribution of the si5 pac!& the open top cooler& and many other innovations that made it easier for people to drin! 'oca.'ola at home or a%ay" #his ne% thin!ing made 'oca.'ola not just a huge success& but a big part of people?s lives"

The 5ar a(/ It+ Le0a%. 61791817<7;

1B

'oca cola enjoyed in 192 countries %orld%ide by Introducing 'o!e" In 1AH1& America entered /orld /ar II" #housands of men and %omen %ere sent overseas" #he country& and 'oca.'ola& rallied behind them" /oodruff ordered that Kevery man in uniform gets a bottle of 'oca.'ola for 1 cents& %herever he is& and %hatever it costs the 'ompany"K In 1AHB& $eneral -%ight -" Disenho%er sent an urgent cablegram to 'oca.'ola& re6uesting shipment of materials for 12 bottling plants" -uring the %ar& many people enjoyed their first taste of the beverage& and %hen peace finally came& the foundations %ere laid for 'oca.'ola to do business overseas" /oodruff7s vision that 'oca.'ola be placed %ithin Karm?s reach of desire&K %as coming true ..from the mid. 1AH2s until 1A=2& the number of countries %ith bottling operations nearly doubled" ,ost.%ar America %as alive %ith optimism and prosperity" 'oca. 'ola %as part of a fun& carefree American lifestyle& and his imagery of its advertising ..happy couples at the drive.in& carefree moms driving big yello% convertibles ..reflected the spirit of the times" 'oca cola enjoyed in 1=1 countries %orld%ide" It introduced can in 1A=2" In 1A;1 Roberto c" $oi(ueta became chairman and 'DO of the coca cola company After @2 years of success %ith one brand& 'oca.'olaO& the 'ompany decided to e5pand %ith ne% flavours4 8antaO& originally developed in the 1AH2s and introduced in the 1A12s< SpriteO follo%ed in 1A=1& %ith #A+O in 1A=B and 8rescaO in 1A==" In 1A=2& #he 'oca.'ola 'ompany ac6uired #he :inute :aid 'ompany& adding an entirely ne% line of business juicesto the 'ompany" #he 'ompany?s presence %orld%ide %as gro%ing rapidly& and year after year& 'oca.'ola found a home in more and more places4 'ambodia& :ontserrat& ,araguay& :acau& #ur!ey and more" Advertising for 'oca.'ola& al%ays an important and e5citing part of its business& really came into its o%n in the 1A@2s& and reflected a brand connected %ith fun& friends and good times" #he international appeal of 'oca.'ola %as embodied by a 1A@1 commercial& %here a group of young people from all over the %orld gathered on a hilltop in Italy to sing KI?d Li!e to +uy the /orld a 'o!e"K In 1A@;& #he 'oca.'ola

1H

'ompany %as selected as the only 'ompany allo%ed selling pac!aged cold drin!s in the ,eople?s Republic of 'hina"

DIET CO=E AND NE5 CO=E 617>2817>7;

'oca cola enjoyed in 1=1 countries %orld%ide" In 1A;9 diet co!e %as introduced" #he 1A;2s the era of leg%armers& headbands and the fitness cra(e& and a time of much change and innovation at #he 'oca.'ola 'ompany" In 1A;1& Roberto '" $oi(ueta became chairman of #he +oard of -irectors and 'DO of #he 'oca.'ola 'ompany" $oi(ueta& %ho fled 'astro?s 'uba in 1A=1& completely overhauled the 'ompany %ith a strategy he called Kintelligent ris! ta!ing"K Among his bold moves %as organi(ing the numerous 0"S" bottling operations into a ne% public company& 'oca.'ola Dnterprises Inc" *e also led the introduction of diet 'o!eO& the very first e5tension of the 'oca.'ola trademar!< %ithin t%o years& it had become the top lo%.calorie drin! in the %orld& second in success only to 'oca.'ola" One of $oi(ueta?s other initiatives& in 1A;1& %as the release of a ne% taste for 'oca.'ola& the first change in formulation in AA years" In taste tests& people loved the ne% formula& commonly called 3ne% 'o!e"E In the real %orld& they had a deep emotional attachment to the original& and they begged and pleaded to get it bac!" 'ritics called it the biggest mar!eting blunder ever" +ut the 'ompany listened& and the original formula %as returned to the mar!et as 'oca.'ola classicO& and the product began to increase its lead over the competition a lead that continues to this day"

NE5#AR=ETS AND BRAND 6177:81777;

11

In 1AAB pet bottles are introduced" 'oca cola enjoyed in 922 countries %orld%ide" #he 1AA2s %ere a time of continued gro%th for #he 'oca.'ola 'ompany" #he 'ompany?s long association %ith sports %as strengthened during this decade& %ith on.going support of the Olympic $ames& 8I8A /orld 'upP football FsoccerG& Rugby /orld 'up and the National +as!etball Association" 'oca.'ola classic became the Official Soft -rin! of NAS'AR racing& connecting the brand %ith one of the %orld?s fastest gro%ing and most popular spectator sports" And 1AAB sa% the introduction of the popular KAl%ays 'oca.'olaK advertising campaign& and the %orld met the lovable 'oca.'ola ,olar +ear for the first time" Ne% mar!ets opened up as 'oca.'ola products %ere sold in Dast $ermany in 1AA2 and returned to India in 1AAB" Ne% beverages joined the 'ompany?s line.up& including ,o%eradeO sports drin!& IooO children?s fruit drin! and -asaniO bottled %ater" #he 'ompany?s family of brands further e5panded through ac6uisitions& including LimcaO& :aa(aO and #hums 0pO in India& +ar6?sO root beer in the 0"S"& Inca )olaO in ,eru& and 'adbury Sch%eppes?O beverage brands in more than 192 countries around the %orld" +y 1AA@& the 'ompany already sold 1 billion servings of its products every day& yet !ne% that opportunity for gro%th %as still around every corner"

In 1;;=& 'oca.'olaO brought refreshment to patrons of a small Atlanta pharmacy" No%%ell into its second century& the 'ompany?s goal is to provide magic every time someone drin!s one of its more than H22 brands" 'oca.'ola has fans from +oston to +udapest to +ahrain& drin!ing brands such as Ambasa& egitabeta and 8rescolita" In the remotest comers of the globe& you can still find 'oca.'ola" 'oca.'ola is committed to local mar!ets& paying attention to %hat people from different cultures and bac!grounds li!e to drin!& and %here
1=

and ho% they %ant to drin! it" /ith its bottling partners& the 'ompany reaches out to the local communities it serves& believing that 'oca.'ola e5ists to benefit and refresh everyone it touches" 8rom the early beginnings %hen just nine drin!s a day %ere served& 'oca 'ola has gro%n to the %orld7s most ubi6uitous brand& %ith more than 1"H billion beverage servings sold each day" /hen people choose to reach for one of #he 'oca.'ola 'ompany brands& the 'ompany %ants that choice to be e5citing and satisfying& every single time" #r. At,$ S&(0h "re+&/e(t a(/ CEO? C'%a8C'$a I(/&a Atul Singh too! over as the ,resident and 'DO& 'oca.'ola India from 1st September 9221" Atul holds a :+A degree from #e5as 'hristian 0niversity" ,rior to this assignment& Atul Singh %as the ,resident of Dast& 'entral J South FD'SG 'hina -ivision in >anuary 9221" ,rior to joining 'oca.'ola& Atul %or!ed for the 'olgate ,almolive 'ompany for 12 years and held several roles including 'ountry $eneral :anager& Nigeria F1AA1.1AA;G& '8O then $eneral :anager& Romania F1AA9.1AA1G and 8inance :anager& 0SA +ody 'are F1AA2.1AA9G& ,rior to 'olgate& Atul %or!ed as an Auditor %ith ,rice /aterhouse in Ne% Nor!" 'oca.'ola& the corporation nourishing the global community %ith the %orld7s largest selling soft drin! concentrates since 1;;=& returned to India in 1AAB after a 1= year hiatus& giving ne% thumbs up to the Indian soft drin! mar!et" In the same year& the 'ompany too! over o%nership of the nation7s top soft.drin! brand and bottling net%or!" It7s no %onder our brands have assumed an iconic status in the minds of the %orld7s consumers" 'oca.'ola re.entered the Indian mar!et on 9=th October 1AAB after a gap of 1= years& %ith its launch in Agra" An agreement %ith the ,arle $roup gave the 'ompany instant o%nership of the top soft drin! brands of the nation" /ith access to 1B of ,arle7s plants and a %ell set bottling net%or!& an e5cellent base for rapid introduction of the 'ompany7s International brands %as formed" #he 'oca.'ola 'ompany ac6uired soft drin! brands li!e #humps 0p& $old spot& Limca& :aa(a& %hich %ere floated by ,arle& as these products had achieved a strong consumer base
1@

and formed a strong brand image in Indian mar!et during the re.entry of 'oca. 'ola in 1AAB"#hus these products became a part of range of products of the 'oca.'ola 'ompany"In the ne% liberali(ed and deregulated environment in 1AAB& 'oca.'ola made its re.entry into India through its 122M o%ned subsidiary& *''+,L& the Indian bottling arm of the 'oca.'ola 'ompany" *o%ever& this %as based on numerous commitments and stipulations %hich the 'ompany agreed to implement in due course" One such major commitment %as that& the *industan 'oca.'ola *oldings %ould divest HAM of its shareholding in favor of resident shareholders by >une 9229"

1;

CO#"ANY "ROFILE:
3/e sell moments of pleasure& cents at a time& 1"= billion servings every day& and %e feel that there is tremendous continued opportunity both today and tomorro%" In the coming decade& as a billion ne% consumers enter into the middle class around the %orld& %e see great opportunity for our per capita consumption to continue rising" And %e firmly believe that our 'oca.'ola system is ideally and uni6uely positioned to capture this opportunity and achieve the goals of our 9292 ision"E. says :uhtar )ent 'hairman and 'hief D5ecutive Officer& 'oca 'ola 'ompany" :uhtar )ent Fborn in 1A19G& is a #ur!ish American businessman& %ho is currently 'hairman and 'hief D5ecutive Officer F'DOG of #he 'oca.'ola 'ompany" *e %as appointed to assume the position of 'hief Operating Officer of the 'ompany in 922;" :uhtar )ent found a job at #he 'oca.'ola 'ompany through a ne%spaper ad" *e toured the country in truc!s to sell 'oca.'ola& and thereby learned its distribution& mar!eting and logistics systems"

In 1A;1& he %as promoted to the general manager position of 'oca.'ola #ur!ey and 'entral Asia& and transferred the head6uarters of the company
1A

from I(mir to Istanbul" #hree years later& he %as appointed vice president of 'oca.'ola International& responsible for 9B countries in a region from the Alps to the *imalayas" Living in ienna& Austria& he served at this post until 1AA1" 8rom 1A;A to 1AA1& he served as president of the 'ompany7s Dast 'entral Durope -ivision during %hich he %as responsible for 9B countries" ,romoted further& :uhtar )ent became in 1AA1 managing director of 'oca. 'ola Amatil.Durope" In t%o years& he increased the turnover of the company about 12M& %hich covered bottling operations in 19 Duropean countries" In 1AAA& he left the 'oca.'ola 'ompany after 92 years of service" Returning to #ur!ey& :uhtar )ent assumed the post of top e5ecutive of Dfes +everage $roup at Anadolu $roup& the largest local shareholder of the 'oca.'ola franchise in #ur!ey and one of Durope?s largest international beverage businesses" *e e5tended the company?s territory from the Adriatic to 'hina" In :ay 9221& he re.joined 'oca.'ola after almost = years and %as appointed president and chief operating officer of the company7s North Asia& Durasia and :iddle Dast $roup& a position reporting directly to chairman and chief e5ecutive officer Neville Isdell" :uhtar )ent?s rise continued and he %as promoted in >anuary 922=& the ne%ly.created position of president of International Operations" In this capacity& he %as responsible for all operations outside of North America& and all group presidents outside of North America reported to him" *is successful career too! him finally to the summit of the 'oca.'ola 'ompany& %hich named him chairman and chief e5ecutive officer& effective >uly 1& 922;" *e currently serves on the board of directors of the National 'ommittee on 0nited States.'hina Relations" /hile 'DO of 'oca. 'ola in 922;& :uhtar )ent?s earnings totaled L1A&=9;&1;1& %hich included a base salary of L1&122&222& a cash bonus of LH&122&222& stoc!s granted of L9&AAA&A@1& and options granted of L12&9;2&H9;

92

O(e ') the C'%a8C'$a C'*pa(.@+ hea/-,arter+ 3,&$/&(0+ &( At$a(ta

A3',t the C'*pa(.:

#ISSION:
'oca 'ola Roadmap starts %ith their mission& %hich is enduring" It declares our purpose as a company and serves as the standard against %hich %e %eigh our actions and decisions" 1" #o refresh the %orld" FIn mind& body and spirit" G 9" #o inspire moments of optimism and happiness" F#hrough our brands and our actions"G B" #o create value and ma!e a difference" FDvery%here %e engage"G

VISION:
3#he %orld is changing all around us" #o ensure our business %ill continue to thrive over the ne5t 12 years and beyond& %e are loo!ing ahead to understand the trends and forces that %ill shape our industry in the future" Our 9292 ision creates a long.term destination for our business" It provides us %ith business goals that outline %hat %e need to accomplish %ith our global bottling partners in order to continue %inning in the mar!etplace and achieving sustainable& 6uality gro%th" 8or each goal& %e have a set of guiding principles and strategies for %inning throughout the entire 'oca.'ola system"E

91

The C'%a8C'$a "r'*&+e: #he 'oca.'ola 'ompany e5ists to benefit and refresh everyone %ho is touched by our business" O,r 5&((&(0 C,$t,re: Our /inning 'ulture defines the attitudes and behaviors that %ill be re6uired of us to ma!e our 9292 ision a reality" L&4e O,r Va$,e+: Our values serve as a compass for our actions and describe ho% %e behave in the %orld"

99

F'%,+ '( the #arAet: 1" 8ocus on needs of our consumers& customers and franchise partners 9" $et out into the mar!et and listen& observe and learn B" ,ossess a %orld vie% H" 8ocus on e5ecution in the mar!etplace every day 1" +e insatiably curious

9B

5'rA S*art 1" Act %ith urgency 9" Remain responsive to change B" *ave the courage to change course %hen needed H" Remain constructively discontent 1" /or! efficiently A%t $&Ae OB(er+ 1" +e accountable for our actions and inactions 9" Ste%ard system assets and focus on building value B" Re%ard our people for ta!ing ris!s and finding better %ays to solve problems H" Learn from our outcomes .. %hat %or!ed and %hat didn7t Be the Bra(/ Inspire creativity& passion& optimism and fun

9H

Or0a(&1at&'( Str,%t,re &( HCCB"L

H&(/,+ta( C'%a8C'$a Be4era0e+ "r&4ate L&*&te/

91

#a(,)a%t,r&(0 "r'%e++ ') HCCB"L

9=

TY"ES OF OUTLETS #he company has divided their outlets on the basis of the follo%ing criteria.
9@

1" 'hannel 9" olume

B" Income group CHANNEL #he various routes formulated by *''+,L for distribution of products is as follo%s4 )ey Accounts4 #he customers in this category collectively contribute a large chun! of the total sales of the 'ompany" It basically consists of organi(ations that buy large 6uantities of a product in one single transaction" #he 'ompany 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" ECa*p$e+: 'lubs& fine dines restaurant& hotels& corporate houses etc" F,t,re C'(+,*pt&'(: #his route consists of outlets of 'oca.'ola products& %herein a considerable amount of stoc! is !ept in order to use for future consumption" #he stoc! does not e5haust %ithin a day or t%o& instead as and %hen re6uired stoc!s are stac!ed up by them so as to avoid shortage or non. availability of the product" ECa*p$e+4 -epartmental stores& Super mar!ets etc" I**e/&ate C'(+,*pt&'(: #he outlets in this route are those %hich re6uire stoc!s on a daily basis" #he stoc!s of products in these outlets are not stored for future use instead& are e5hausted on the same day and might run a little into the ne5t day i"e" the products are consumed at a fast pace" ECa*p$e+: Small si(ed bars and restaurants& educational institutions etc" e(era$:

9;

0nder this route& all the outlets that come in a particular area or an area along %ith its neighboring areas are catered to" #he consumption period is not ta!en into consideration in this particular route" VOLU#E #here are four types of outlets according to the volume of sales of the outlet4

CHAIN FOLLO5ED FRO# #ANUFACTURE TO DISTRIBUTION *industa( 'oca.'ola +everages ,rivate Limited has a %ide a(/ %ell. managed net%or! of salesmen appointed for ta!ing up the responsibility of distribution of products to diverse parts of the cities" #he distribution channels are constructed in such a %ay that the demand of customers is fulfilled at the right place and the right time %hen they need it" A typical distribution chain at *industan 'oca.'ola +everages ,rivate Limited %ould be4

9A

#he customers of the 'ompany are divided into different categories and different routes& and every salesman is assigned to one particular route& %hich is to be follo%ed by him on a daily basis" A detailed and %ell.organi(ed distribution system contributes to the efficiency of the salesmen" It also leads to lo% costs& higher sales and higher efficiency thereby leading to higher profits to the firm" S5OT ANALYSIS

B2

DUALITY $olden ,eacoc! National Iuality A%ard 922H . 'oca.'ola India -ivision ,resident& :r" Sanjiv $upta received the $olden ,eacoc! National Iuality A%ard 922H along %ith the 'oca.'ola team at the 11th /orld congress on #otal Iuality in :umbai on >anuary 1H& 9221" /e ensure the 6uality and safety of our beverages through the coca.cola 6uality system F#''ISG& our integrated approach to managing 6uality& environment& health and safety" /e continuously revie% #''IS to ensure it meets the most stringent and up to date global re6uirements related to food safety& as %ell as 6uality management methods& industry best practice and mar!etplace conditions" In our ingredients evaluation laboratories& for e5ample& %e perform precise analyses of fruit juices and other ingredients sent to us by our suppliers& to ensure and to improve product 6uality" Our processes& too& undergo constant security& to safeguard the %ater %e use in our products and the pac!aging that carries them to our consumers" /e inform and educate our business partners about our standards so that they meet the highest 6uality re6uirements" 0nder #''IS& 6uality is our highest business objective and our enduring obligations"

The C'%a8C'$a D,a$&t. S.+te* Dveryone %ho %or!s for or %ith coca
cola is empo%ered and e5pected to maintain the highest standards of 6uality in products& processes and relationship" #''IS mandates in.depth self. assessment throughout our operations& by all our business units" #his enables us to continually raise our standards" #he latest version of our system. evolution B& launched in 922H has been e5ternally benchmar!ed against international 6uality standards ISO A221" It also incorporates *a(ards Analysis 'ritical 'ontrol ,oint System"

B1

Chapter 8E
#heoretical 8rame%or! FaG #opic related concepts FbG Revie% of Literature

B9

The'ret&%a$ Fra*eB'rA:
:AR)D#IN$
It is a process by %hich One identifies the needs and %ants of the people" One determines and creates a product/service to meet the needs and %ants" Q,RO-0'#R One determines a %ay of ta!ing the product/service to the mar!et place" Q,LA'DR

One determines the %ay of communicating the product to the mar!et place" Q,RO:O#IONSR

One determines the value for the product"Q,RI'DR" One determines the people& %ho have needs/ %ants" Q,DO,LDR and then creating a transaction for e5changing the product for a value" And thus creating a satisfaction to the buyer?s needs/%ants"

TER#S t' ,(/er+ta(/ 1" ,roduct/Service means a product or service or idea to satisfy the people7s needs / %ants" 9" Needs mean %hen a person feels deprived of something" B" /ants mean %hen a person7s need is formed / shaped by personality& culture& and !no%ledge" H" alue means the benefits that the customer gains from o%ning and using the product and the cost of the product" Satisfaction means the e5tent to %hich a product7s perceived performance matches a buyer7s e5pectation" =" D5change means the act of obtaining a needed/ %anted object by offering something in return" @"#ransactions mean trade off bet%een a buyer seller that involves an e5change at agreed conditions" :ar!eting is based on identifying& anticipating and satisfying customer needs effectively and profitably" It encompasses mar!et research& pricing& promotion& distribution& customer care& your brand image and much more"

BB

F#C

I(/,+tr.:
INDUSTRY IN INDIA:

A BRIEF INSI HT8 THE F#C

8ast :oving 'onsumer $oods F8:'$G goods are popularly named as %'(+,*er pa%Aa0e/ 0''/+" Items in this category include all consumables FOther than groceries/pulsesG people buy at regular intervals" #he most common in the list are toilet soaps& detergents& shampoos& toothpaste& shaving products& shoe polish& pac!aged food stuff& and house hold accessories and e5tends to certain electronic goods" #hese items are meant for daily of fre6uent consumption and have a high return" #he Indian 8:'$ sector is an important contributor to the country7s $-," #he 8:'$ sector is the fourth largest sector of Indian economy" #he 8:'$ mar!et is estimated to treble from its current figure in the coming decade" #he Indian 8:'$ sector is the fourth largest sector in the economy %ith a total mar!et si(e in e5cess of L1B"1 billion" It has a strong :N' presence and is characteri(ed by a %ell.established distribution net%or!& intense competition bet%een the organi(ed and unorgani(ed segments and lo% operational cost" Availability of !ey ra% materials& cheaper labor costs and presence across the entire value chain gives India a competitive advantage" #he 8:'$ mar!et is set to treble from L11"= billion in 922B to LBB"H billion in 9211" ,enetration level as %ell as per capita consumption in most product categories li!e jams& toothpaste& s!in care& hair %ash etc" in India is lo% indicating the untapped mar!et potential" +urgeoning Indian population& particularly the middle class and the rural segments& presents an opportunity to ma!ers of branded products to convert consumers to branded products" $ro%th is also li!ely to come from consumer ?upgrading? in the matured product categories" /ith 922 million people e5pected to shift to processed and pac!aged food by 9212& India needs around L9; billion of investment in the food.processing industry" In this year %hen almost all the stoc!s have been tumbled heavily on the -alal Street& the one sector %hich completely outperformed the mar!et is 8:'$" -uring last 19 %ee!s the SDNSDS has lost by around 1BM& %hile +SD 8:'$ has just lost by belo% 12M" Sense5 %itnessed strong bull mar!et journey %ith almost @ fold gains from B222 in 922B to 91222 in 922;& the 8:'$ did not match the Inde5 e6uivalently but managed to follo% the trend by almost B"1 times gain for the same period" No% in a bear mar!et scenario& the 8:'$ is buc!ing the trend %hich is a big sigh of relief for investors" He(%e Be 3e$&e4e F#C &+ +tr'(0 a(/ /e)e(+&4e +e%t'r and one should consider this sector for his portfolio and allocate some portion for it" *LL led the %ay in revolutioni(ing the product& mar!et& distribution and service formats of the 8:'$ industry by focusing on rural mar!ets& direct distribution& creating ne% product& distribution and service formats" #he
BH

8:'$ sector also received a boost by government led initiatives in the 922B budget such as the setting up of e5cise free (ones in various parts of the country that %itnessed firms moving a%ay from outsourcing to manufacturing by investing in the (ones" #hough the absolute profit made on 8:'$ products is relatively small& they generally sell in large numbers and so the cumulative profit on such products can be large" 0nli!e some industries& such as automobiles& computers& and airlines& 8:'$ does not suffer from mass layoffs every time the economy starts to dip" A person may put off buying a car but he %ill not put off having his dinner" 0nli!e other economy sectors& 8:'$ share float in a steady manner irrespective of global mar!et dip& because they generally satisfy rather fundamental& as opposed to lu5urious needs" #he 8:'$ sector& %hich is gro%ing at the rate of AM is the fourth largest sector in the Indian Dconomy and is %orth Rs"AB222 crores" #he main contributor& ma!ing up B9M of the sector& is the South Indian region" It is predicted that in the year 9212& the 8:'$ sector %ill be %orth Rs"1HB222 crores" #he sector being one of the biggest sectors of the Indian Dconomy provides up to H million jobs"
(Source: HCCBPL, Monthly Circular, March)

BEVERA E INDUSTRY IN INDIA: A BRIEF INSI HT

Since the early 1AA27s 'oca.'ola 'orporation and ,epsi'o have been combating on %hat is !no%n as the 3+everage +attlefieldE in India" #oday India is one of the most sought after countries for foreign investments because of their continually gro%ing mar!et opportunities" *o%ever during 'oca.'ola and ,epsi7s attempts to broaden their global consumer bases both companies encountered several obstructions on their pursuits of con6uering the Indian soft drin! mar!et"

The I(/&a( Be4era0e #arAet

India7s one billion people& gro%ing middle class& and lo% per capita consumption of soft drin!s made it a highly contested pri(e in the global 'Smar!et in the early t%enty.first century" #en percentage of the country7s population lived in urban areas or large cities and dran! ten bottles of soda per year %hile the vast remainder lived in rural areas& villages& and small to%ns %here annual per capita consumption %as less than four bottles" 'o!e and

B1

,epsi dominated the mar!et and together had a consolidated mar!et share above A1M" /hile soft drin!s %ere once considered products only for the affluent& by 922B A1M of sales %ere made to the lo%er& middle and upper middle classes" Soft drin! sales in India gre% @=M bet%een 1AA;and 9229& from 1&=@2 million bottles to over 12&222million and %ere e5pected to gro% at least 12M per year through 9219"9; In spite of this gro%th& annual per capita consumption %as only = bottles versus 1@in ,a!istan& @B in #hailand& 1@B in the ,hilippines and;22 in the 0nited States" /ith its large population and lo% consumption& the rural mar!et represented a significant opportunity for penetration and a critical battleground for mar!et dominance" In 9221& 'oca.'ola recogni(ed that to compete %ith traditional refreshments including lemon %ater& green coconut %ater& fruit juices& tea& and lassi& competitive pricing %as essential" In response& 'o!e launched a smaller bottle priced at almost 12M of the traditional pac!age" #he beverage industry is vast and there various %ays of segmenting it& so as to cater the right product to the right person the different %ays of segmenting it are as follo%s4 1" Alcoholic& non.alcoholic and sports beverages 9" Natural and Synthetic beverages B" In.home consumption and out of home on premises consumption" H" Age %ise segmentation i"e" beverages for !ids& for adults and for senior citi(ens 1" Segmentation based on the amount of consumption i"e" high levels of consumption and lo% levels of consumption" C$a++&)&%at&'( ') Be4era0e+

B=

If the behavioral patterns of consumers in India are closely noticed& it could be observed that consumers perceive beverages in t%o different %ays i"e" beverages are a lu5ury and that beverages have to be consumed occasionally" #hese t%o perceptions are the biggest challenges faced by the beverage industry" In order to leverage the beverage industry& it is important to address this issue so as to encourage regular consumption as %ell as and to ma!e the industry more affordable" 8our strong strategic elements to increase consumption of the products of the beverage industry in India are4 1" #he 6uality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages" 9" #he credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have %hile consuming the beverages" B" 'onsumer education is a must to bring out benefits of beverage consumption %hether in terms of health& taste& rela5ation& stimulation& refreshment& %ell.being or prestige relevant to the category" H" 'ommunication should be relevant and trendy so that consumers are able to find an appeal to go out& purchase and consumer" #he beverage mar!et has still to achieve greater penetration and also a %ider spread of distribution" It is important to loo! at the entire beverage mar!et& as a

B@

big opportunity& for brand and sales gro%th in turn to add up to the overall gro%th of the food and beverage industry in the economy"

6a; T'p&% re$ate/ %'(%ept+

Cha((e$ ') D&+tr&3,t&'(:
:eans used to transfer merchandise from the manufacturer to the end user" Intermediaries in the channel are called middlemen" #hose %ho actually ta!e title to the merchandise and resell the goods are merchant middlemen" #hose %ho act as +ro!er but do not ta!e title are agent middlemen" :erchant middlemen include %holesalers and retailers" Agent middlemen include :anufacturer?s Representatives& bro!ers& and sales agents" /hether these e5change processes occur bet%een manufacturers and their suppliers& retailers and consumers& or in some other buyer.seller relationship& mar!eting channels offer an important %ay to build competitive advantages in today?s global mar!etplace" #his is so for t%o major reasons4

-istribution strategy lies at the core of all successful mar!et entry and e5pansion strategies" #he globali(ation of manufacturing and mar!eting re6uires the development of e5change relationships to govern the movement of goods and services"
B;

Ne% technologies are creating real.time FparallelG information e5change and reducing cycle times and inventories" #a!e as an e5ample -ell 'omputer& %hich produces on.command& customi(ed computers to satisfy individual customer preferences" At the same time& -ell is able to align its need for material inputs Fsuch as chipsG %ith customer demand for its computers" -ell uses just-in-time production capabilities" Internet.based organi(ations no% compete vigorously %ith traditional suppliers& manufacturers& %holesalers& and retailers" :ar!eting channels al%ays emerge from the demands of a mar!etplace"

*o%ever& mar!ets and their needs are al%ays changing" It?s true& then& that mar!eting channels operate in a state of continuous evolution and transformation" 'hannels of distribution must constantly adapt in response to changes in the global mar!etplace" #his ne% selling orientation inspired the development of ne% intermediaries as manufacturers sought ne% %ays to e5pand mar!et coverage to an increasingly mobile population" #he selling orientation re6uired that more intimate access be established to a no% more diversified mar!etplace" In response& %holesale and retail intermediaries evolved to reach consumers living in rural areas& ne%ly emerging suburbs and densely populated urban centers" Relationship mar!eting is driven by t%o principles having particular relevance to mar!eting channel strategy4

BA

Long.term& ongoing relationships bet%een channel members are cost. effective" FAttracting ne% customers costs more than ten times more than retaining e5isting customers"G

#he interactive dialogue bet%een providers and users of goods and services is based on mutual trust"

The R'$e ') I(ter*e/&ar&e+:

#his progression from a production to a relationship orientation allo%ed many ne% channel intermediaries to emerge because they created ne% customer values" Intermediaries provide many utilities to customers" " #%o principal tas!s associated %ith the sorting function4

Categorizing. At some point in every channel& large amounts of heterogeneous supplies have to be converted into smaller homogeneous categories"

Breaking bulk. ,roducers %ant to produce in bul! 6uantities" #hus& it is necessary for intermediaries to brea! homogeneous lots into smaller units"

#he role intermediaries play in building customer confidence is their most overloo!ed function" Several types of ris!s are associated %ith e5changes in

H2

channels of distribution& including need uncertainty& mar!et uncertainty& and transaction uncertainty" Intermediaries create value by reducing these ris!s .
CO=E "RODUCTS IN INDIA: 1" 'oca.cola 9" #humps 0p B" Sprite H" 8anta 1" Limca =" :aa(a @" )inley ;" :inute :aid O,t ') Bh&%h 'oca.cola& :aa(a& )inley& Sprite& :inute :aid are 'oca.'ola products a(/ #humps up& Limca& 8anta are the products of ,arle %hich are purchased by the 'oca.'ola 'o" STRATAS OF COCA8COLA C'. INDIA

India is been divided into three FBG strata7s they are

1" North 9" South B" 'entral

H1

CEO

NORTH

SOUTH

CENTRAL

N'te: Ea%h +trata/re0&'( ha+ a Re0&'(a$ V&%e "re+&/e(t

DIVISION OF THE SOUTH INDIA FOR COCA8COLA INDIA: SOUTH 6RE IONAL VICE "RESIDENT;

ANDRA"RADESH =ARNATA=A N'te: Ea%h +tate ha+ a

CHENNAI

=ERALA

AREA

ENERAL

#ANA ER

6A. .#;

OR ANIFATIONGS SALES CHART ARDA $DNDRAL :ANA$DR $DNDRAL SALDS :ANA$DR SALDS :ANA$DR ASSO'IA#D SALDS :ANA$DR

H9

ARDA SALDS :ANA$DR SDNIOR SALDS DSD'0#I D DSD'0#I D SALDS O88I'DR #RAINDD SALDS O88I'DR R0RAL SALDS ,RO:O#DR / :AR)D# -D DLO,DRS DISTRIBUTION CHANNEL OF COCA8COLA "RODUCTS +O##LIN$ ,LAN#

-D,O#

-IS#RI+0#OR

RD#AILDRS

'ONS0:DRS The p$a(t &+ /&4&/e/ &(t' the )'$$'B&(0 FOUR 69; /epart*e(t+?

HB

1" A''O0N#S 9" LO$IS#I'S B" SALDS H" *0:AN RDSO0R'D 1" :AR)D#IN$ =" I0ALI#N 'ON#ROL

TY"ES OF O"ERATIONS UNDERTA=EN BY THE CO#"ANY:

'oca.cola India *olding& the intermi5 of the company.o%ned bottling operations F'O+O7sG and franchisee o%ned bottling operations F8O+O7sG"

CO#"ANY8O5NED BOTTLIN

O"ERATIONS 6COBOSG4 'O+O refers

to the operations directly carried by the company" #hese 'O+O7s have to %or! under the guidelines by the 'oca.cola 'o" #here are three FBG 'O+O units in South India they are at follo%ing places4

+angalore F+iddiG Andhra ,radesh 'hennai

FRANCHISEE O5NED BOTTLIN O"ERATIONS 6FOBOGS;: 8O+O7s refers to the operations carried out by the 8RAN'*ISDR7s

#he plant at *ospet %as initially a 8O+O unit but no% it7s been purchased by the company and soon the company operations %ill start in that plant"

HH

DISTRIBUTORS DETAILS IN VISA=HA"ATNA#: 'riteria for selecting the distributors4 #he company loo!s at the prospects before permitting/Authori(ing for distributor" #herefore the criteria7s are as follo%s& *e should have a godo%n ehicles :anpo%er -eposit for cases/crates at the rate of appro5" 922 each Li6uid value

D&+tr&3,t'r+ r',te "$a((&(0:

-istributors identify t%o routes they are& ,otential route Non ,otential route

Note4 8or ,otential the vehicle goes daily and for non potentials it goes once in a %ee! #he potential routes are those routes in %hich the distributor gets ma5imum business as the number of outlets %ill be more and therefore the vehicle goes daily to meet the mar!et demand" D54 If a distributor has H22 outlets in his area he has to plan accordingly as per his route %here in he has to visit =2 outlets per route"

O"ERATIONAL "LANS FOR THE YEAR:

H1

-istributors have t%o plans a year 1" 8irst plan from >anuary 1st to >une 11th 9" Second ,lan from >une 11th to -ecember B1st FIRST "LAN: #his plan is considered as yielding season %here ma5imum business %ill be earned" #he @2M of the target needs to be achieved during this season

SECOND "LAN: *ere in this plan there %ill be minimum business and during this season there %ill be lot of promotional activities underta!en" The r'$e ') /&+tr&3,t'r &( *arAet: #he distributors7 salesman is trained properly %ith respect to his behaviour %ith the retailers" As soon as the vehicle goes to the outlet it is the duty of the sales person to 1" $reet the retailer and have a loo! at the cooler/refrigerator" 9" *e has to suggest the retailer about the stoc! needed B" 'onvince him for purchase H" ,lace the products in the cooler as per brand order 1" Loo! at the %arm displays =" 8ollo% up and handle complaints S,pp'rt )r'* the %'*pa(. t' the /&+tr&3,t'r

H=

#he company supports the distributors in terms of incentives during the off season i"e" during the second plan in order to retain the distributor"
DETAILS OF RED OUTLETS:

#he Red outlets are divided as4 1" +RONTD 9" SIL DR B" $OLH" -IA:ON-

The Ba+&+ )'r the a3'4e /&4&+&'( &+ a+ )'$$'B+

1" +ron(e outlets are those outlets %ho sell less than 9AA cases a Near" 9" Silver outlets are those outlets %ho sell B22 cases to HAA cases a Near" B" $old outlets are those outlets %ho sell 122 cases to @AA cases a Near" H" -iamond outlets are those outlets that sell ;22 and above cases a Near"

H@

REVIE5 OF LITETURE:
LITRATURE 1 O,DRA#ION S#RA#D$IDS 8OR 'O'A.'OLA S ,D,SI 'O:,ANIDS #O A##RA'# #*DIR '0S#O:DRS :ojtaba Saeidinia 'andidate of :+A& :anagement and Science 0niversity& 8aculty of :anagement& :alaysia D.mail4 :"saeidinia1A;AUgmail"com :ehrdad Salehi 'andidate of :+A& :anagement and science university& 8aculty of :anagement& :alaysia D.mail4 DmsVsalehi=HUyahoo"com LITRATURE 2 ULithe 'oca.'ola 'ompany versus ,epsi'o& Inc" Andy +erg 0fuoma Omosebi Intermediate Accounting III A''B21 1A November& 9211 'oca 'ola and ,epsi are the t%o most popular and %idely recogni(ed beverage brands in the 0nited States" ,epsi and 'oca 'ola contrast each

H;

other on their taste& its associated colors and themes& and ingredients" Dven the pension plans and funding status are a competitive comparison" LITRATURE E 'oca cola and ,epsi4 A comparative study of ,ension plans& investment and Dmployment preference April Oa!s.+runson :s" +renda Adams Intermediate Accounting III 8ebruary& 1;& 9211

HA

Chapter 9
Analysis of Study

2. T.pe ') O,t$et

Ta3$e:

O,#IONS ,an Shop *ome 8oods J s%eets )irana J Retail Stores

N0:+DR O8 RDS,ON-DN#S H@ 99 1=

12

Other7s

91

F&0,re:

I(terpretat&'(:

In this survey& different types of outlets7 %ere covered in %hich there are about B1M )irana J Retail Stores& B1M ,an Shops& *ome 8oods J S%eets of 11M"

11

E. Nat,re ') the O,t$et+ &+

Ta3$e:

O,#IONS 'oca W 'ola ,epsi'o Shared

N0:+DR O8 RDS,ON-DN#S ;1 1B 19

F&0,re:

19

I(terpretat&'(:

#hrough this Survey& :ajority of the Outlets are having 'oca W 'ola i"e" about 1@M and Remaining B1M is of ,epsi'o7s& ;M is shared"

9. Re$at&'(+h&p ') the /&+tr&3,t'r/*arAet /e4e$'per+/+a$e+ eCe%,t&4e+ B&th .',

Ta3$e:

1B

O,#IONS $ood +ad

N0:+DR O8 RDS,ON-DN#S 19A 91

F&0,re:

I(terpretat&'(:

According to this ;1M of the Outlets are having good relationship %ith the distributor/mar!et developers/sales e5ecutives and vice W versa"

1H

H'B *a(. t&*e+ a C'%a 8 C'$a /&+tr&3,t'r/ Sa$e+ eCe%,t&4e 4&+&t+ .',r ',t$et per BeeA
<.

Ta3$e:

O,#IONS Once #%ice -aily

N0:+DR O8 RDS,ON-DN#S 9 1H; 2

F&0,re:

11

I(terpretat&'(:

A9M of 'oca . 'ola distributor/sales D5ecutives visits t%ice for every outlet per %ee!"

H. H'B *a(. t&*e+ B',$/ .', eCpe%t /&+tr&3,t'r 4eh&%$e t' 4&+&t .',

Ta3$e:

O,#IONS

N0:+DR O8 RDS,ON-DN#S

1=

Once #%ice -aily

2 112 2

F&0,re:

I(terpretat&'(:

As per Rules of the company& Dvery -istributor :ust isit Outlet #%ice per %ee!"

1@

I. H'B *a(. t&*e+ a "ep+&C'G+ /&+tr&3,t'r/ Sa$e+ eCe%,t&4e 4&+&t+ .',r

',t$et per BeeA

Ta3$e:

O,#IONS Once #%ice -aily

N0:+DR O8 RDS,ON-DN#S 2 2 112

F&0,re:

1;

I(terpretat&'(:

122M of ,epsi'o7s distributor/ Sales D5ecutive visits -aily for every outlet per %ee!"

>. Are %'AeG+ pr'/,%t /e$&4ere/ &( t&*e

Ta3$e:

O,#IONS Nes No

N0:+DR O8 RDS,ON-DN#S 112 2

1A

F&0,re:

I(terpretat&'(:

According to this 122M of the retailers responded yes in terms of satisfaction in delivery J 2M feel not"

=2

7.

Reta&$erG+ are +at&+)&e/ B&th the +,pp$. ') %'Ae /,r&(0 ea%h /e$&4er.

Ta3$e:

O,#IONS Nes No

N0:+DR O8 RDS,ON-DN#S 1H= H

F&0,re:

=1

I(terpretat&'(:

According to this A@M of the retailers responded yes in terms of satisfaction in delivery J BM feel not"

1:. Reta&$er+ are ('t +at&+)&e/ B&th the +,pp$. ') %'Ae /,r&(0 ea%h /e$&4er.

Ta3$e:

O,#IONS Improper ,roducts delivery

N0:+DR O8 RDS,ON-DN#S 1H; 2 9

Improper +illing System Others

F&0,re:

=9

I(terpretat&'(:

According to this AAM of the Retailers are not satisfied %ith the supply of co!e during each delivery because of Improper ,roducts -elivery

11. N'. O) %a+e+ +a$e+ per BeeA are

=B

Ta3$e:

O,#IONS 2 W 1 'ases = W 12 'ases 12 Above

N0:+DR O8 RDS,ON-DN#S 191 1H 11

F&0,re:

=H

I(terpretat&'(: According to this the ma5imum retailer7s sales per %ee! FNo" of 'asesG is ;1M i"e" up to 1 'ases J the minimum sales per %ee! of the retailer7s is AM i"e" = . 12 cases per %ee!"

12. The Fa%t'r+ *aAe+ the Reta&$er+ t' +e$$ "E"SI &( the ',t$et+

Ta3$e:

O,#IONS +rand Name D5ecutives Relationship 'ustomers demand :argin +enefits

N0:+DR O8 RDS,ON-DN#S 9 12 B ;1

F&0,re:

=1

I(terpretat&'(:

8rom the Survey %e came to !no% that about ;1M of the outlets are selling ,epsi'o products due to margin +enefits and 12M are due to loyalty and relationship

1E. pr'/,%t+ ') C'%a8 %'$a Bh&%h &+ *'+t$. /e*a(/e/ 3. %'(+,*er+ &( Reta&$ St're+

Ta3$e:

==

O,#IONS 'oca W 'ola #humps up Sprite Limca :aa(a 8anta

N0:+DR O8 RDS,ON-DN#S B @; A B1 1B 19

F&0,re:

I(terpretat&'(: According to the survey #humps up %hich is consumed mostly by the consumers i"e" 19M< %hich is follo%ed by Limca& Sprite& :aa(a and 8anta"

=@

19. pr'/,%t+ ') "ep+&C' Bh&%h &+ *'+t$. /e*a(/e/ 3. %'(+,*er+ &( Reta&$ St're+

Ta3$e:
O,#IONS ,epsi :ountain -e% -iet ,epsi @ up :iranda N0:+DR O8 RDS,ON-DN#S 9H 19 H B@ @B

F&0,re:

I(terpretat&'(: According to the survey :iranda up %hich is consumed mostly by the consumers i"e" H;M< %hich is follo%ed by @ up& ,epsi& :ountain -e% and -iet ,epsi
=;

1<. Reta&$er+ 4&eB &( re0ar/+ t' -,a$&t. a+ Be$$ a+ -,a(t&t.

Ta3$e: O,#IONS Nes in terms of 6uality No in terms of 6uality Nes in terms of 6uantity No in terms of 6uantity N0:+DR O8 RDS,ON-DN#S 121 92 9B =

F&0,re:

I()ere(%e:
According to this =@M of the retailers responded yes in terms of 6uality J 1HM feel not" 11M Nes in terms of 6uantity J HM no"

=A

1H. Rat&(0 )'r C'%a %'$a J "ep+& +er4&%e

Ta3$e: O"TIONS D5cellent $ood Satisfactory +ad NO. OF RES"ONDENTS 6COCA COLA; H= 1= B9 = NO. OF RES"ONDENTS 6"E"SI; 99 B@ B9 A

F&0,re:

@2

I()ere(%e:
According to this most of the retailers are B9M satisfied %ith coca cola J B9M %ith ,epsi" AM of them rated bad for ,epsi J =M for 'oca cola" H=M preferred D5cellent as 'o!e J 99M to ,epsi" And 1=M good for ,epsi J B@M for 'oca cola

1I. Are .', &()'r*&(0 a3',t the re4&eBe/ D&+%',(tG+ '( C'Ae pr'/,%t+

Ta3$e:
O"TIONS Nes No NO. OF RES"ONDENTS 191 9A

F&0,re:

@1

I(trepretat&'(: According to this information about the revie%ed -iscount7s on 'o!e products are revie%ing to 'ustomer7s %hich is given highest preference given by the retailers i"e" A=M" And vice. ersa is HM"

1>. Ch''+&(0 a pr'/,%t ') a part&%,$ar Bra(/ 3. reta&$er+ a%%'r/&(0 t' the 'pt&'(+. Ta3$e:
O"TIONS #aste 'ustomer Service *ealth 'onvenience Speed NO. OF RES"ONDENTS 6COCA COLA; 9H 1H H 1= ;

@9

Location Atmosphere ariety ,rice

1B H 1H B

F&0,re:

I(trepretat&'(: According to this #aste is the important factor %hich is given highest preference given by the retailers i"e" 9HM" And lo%est is to ,rice %hich is BM"
17. 5h&%h Bra(/ ha+ a B&/e ra(0eK

Ta3$e:
O"TIONS NO. OF RES"ONDENTS 'oca.'ola ,epsi'o Other7s 122 2 2

@B

F&0,re:

I(trepretat&'(: According to this 'oca.cola +rand has a %ide range %hich the highest is given by the retailers i"e" 122M"

2:. #'+t ') the Re*arA+ re%e&4e/ )r'* the C,+t'*er+G &.e. O,t$et+ are Ta3$e:
O"TIONS NO. OF RES"ONDENTS

@H

8ridge demands J repairs7 No 'omplaints service has to Improve

11 1B1 H

F&0,re:

I(terpretat&'(: 8rom the survey& most of the 'ustomers7 are satisfied %ith the service J having no complaints i"e" about A2M& some Outlets are having minor issues li!e 8ridge -emands J repairs7 i"e" @M& and service has to improve is BM"

@1

Chapter <
Summary of 8indings and Suggestions B&3$&'0raph.L A((eC,re

F&(/&(0+ )r'* the +,r4e.:

In this survey& different types of outlets7 %ere covered in %hich there are about B1M )irana J Retail Stores& B1M ,an Shops& *ome 8oods J S%eets of 11M" :ajority of the Outlets are having 'oca W 'ola i"e" about 1@M and Remaining B1M is of ,epsi'o7s& ;M is shared"

@=

 ;1M of the Outlets are having good relationship %ith the distributor/mar!et developers/sales e5ecutives and vice W versa" A9M of 'oca . 'ola distributor/sales D5ecutives visits t%ice for every outlet per %ee!" 122M of ,epsi'o7s distributor/ Sales D5ecutive visits -aily for every outlet per %ee!" According to this A@M of the retailers responded yes in terms of satisfaction in delivery J BM feel not" According to this AAM of the Retailers are not satisfied %ith the supply of co!e during each delivery because of Improper ,roducts -elivery #he ma5imum retailer7s sales per %ee! FNo" of 'asesG is ;1M i"e" up to 1 'ases J the minimum sales per %ee! of the retailer7s is AM i"e" = . 12 cases per %ee!" about ;1M of the outlets are selling ,epsi'o products due to margin +enefits and 12M are due to loyalty and relationship According to the survey #humps up %hich is consumed mostly by the consumers i"e" 19M< %hich is follo%ed by Limca& Sprite& :aa(a and 8anta" According to the survey :iranda up %hich is consumed mostly by the consumers i"e" H;M< %hich is follo%ed by @ up& ,epsi& :ountain -e% and -iet ,epsi According to this =@M of the retailers responded yes in terms of 6uality J 1HM feel not" 11M Nes in terms of 6uantity J HM no" #he retailers are B9M satisfied %ith coca cola J B9M %ith ,epsi" AM of them rated bad for ,epsi J =M for 'oca cola" H=M preferred D5cellent as 'o!e J 99M to ,epsi" And 1=M good for ,epsi J B@M for 'oca cola According to this information about the revie%ed -iscount7s on 'o!e products are revie%ing to 'ustomer7s %hich is given highest preference given by the retailers i"e" A=M" And vice. ersa is HM" #aste is the important factor %hich is given highest preference given by the retailers i"e" 9HM" And lo%est is to ,rice %hich is BM"

@@

 'oca.cola +rand has a %ide range %hich the highest is given by the retailers i"e" 122M" most of the 'ustomers7 are satisfied %ith the service J having no complaints i"e" about A2M& some Outlets are having minor issues li!e 8ridge -emands J repairs7 i"e" @M& and service has to improve is BM"

S,00e+t&'(:
'onsumer prefers 'oca cola +rands more than that of ,epsi because of its %ide range and its taste" $ood taste is the major factor& %hich influence to buy a soft drin!" #herefore company should try to retain its taste" Retailers are satisfied %ith sale of 'oca cola but they also e5pect some benefits li!e repairs charges& cooler charges& gifts and improved taste" So& they can sell more" #his has been observed that major of retailers are happy %ith delivery at right time& credit facilities and commission& 'oupons" 'oca W 'ola -rin! is observed as less sale product in the mar!et& In order to improve its condition improvements in taste has to be made" Some of the areas %hich are located in *ill top areas li!e *imayanth Nagar etc F:al!apuram W +"c road mar!et G %here truc!s are not suitable for delivery& auto carriers are to be used to increase mar!et share" Si(es7 J ,rice7s are changing continuously %hich leads to confusion in 'onsumers and customers" #his must be ta!en care by changing occasionallty but not continuously"

@;

 No%.a.days most of the consumers7 prefer pet bottles" So introduce a ne% pet bottle in bet%een 922ml to 912ml into the mar!et %ith more or less same price by removing $lass +ottles periodically"

CONCLUSION:
-istribution 'hannel plays a very important role especially %ith respect to the Soft drin! industry because if the product is not available on time the consumer /ill s%itch on to other brands and the company %ill loose its mar!et share and *ence an effective distribution channel is the need of this industry" #he -istribution channel of 'oca 'ola 'ompany is effective It is true to any e5tent that the customer is in a state of confusion than comfort" -ue to the mind boggling advertising" Strategies used by all the brands& consumer choice have increased numerously" Still consumer is the !ing holds its highest value" Although there is a nec! competition %ith ,epsi& 'oca . 'ola had emerged as the strongest brand" #he factors influencing %hile decision ma!ing in consuming soft drin!s in isha!hapatnam are the taste of product& +rand name and advertisements& celebrities that influence the consumer attitude to a large e5tent" #here is greater mar!et potential for 'oca cola ,roducts in the city"

@A

BIBLIO RA"HY
Fre/er&%A A$$e(" Secret 8ormula4 *o% +rilliant :ar!eting and Relentless Salesmanship :ade 'oca.'ola the +est.)no%n ,roduct in the /orld" Ne% Nor!4 *arper'ollins" 1AAH" 122pp" #&%hae$ B$a(/&(0" #he 'o!e :achine4 #he -irty #ruth +ehind the /orld?s 8avorite Soft -rin!" ,enguin" 9212" B@1pp" E$&1a3eth Ca(/$er raha*M Ra$ph R'3ert+" #he Real Ones4 8our $enerations of the 8irst 8amily of 'oca.'ola" +arricade +oo!s" 1AA9" BHHpp" Da4&/ re&+&(0" I?d li!e the /orld to +uy a 'o!e4 the Life and Leadership of Roberto $oi(ueta" Somerset& N>4 >ohn /iley J Sons" 1AA;" BBHpp" C'(+ta(%e L. Ha.+" #he Real #hing4 #ruth and ,o%er at the 'oca.'ola 'ompany" Random *ouse" 922H" BA;pp"

;2

DUESTIONAIRE FOR RETAILERS

1. Na*e a(/ A//re++ NNNNNNNNNNNNNNNNNNNNN 2. T.pe ') O,t$et

E. 5hat aG 'o!e &) aG Supply problem of 'o!e &+

NNNNNNNNNNNNNNNNNNNNNN.
the (at,re bG ,epsi OBG bG Any other problem ') ',t$et %; Share/ 5h.

9. Re$at&'(+h&p ') the /&+tr&3,t'r/*arAet /e4e$'per+/+a$e+ eCe%,t&4e+ B&th .', aG $ood <. H'B *a(. t&*e+ bG +ad a /&+tr&3,t'r 4&+&t+ .',r ',t$et per BeeA

aG Once

bG t%ice

cGdaily

H. H'B *a(. t&*e+ B',$/ .', eCpe%t /&+tr&3,t'r 4eh&%$e t' 4&+&t .', aG Once bG t%ice cGdaily

I. H'B *a(. t&*e+ a "ep+&C'G+ /&+tr&3,t'r/ Sa$e+ eCe%,t&4e 4&+&t+ .',r ',t$et per BeeA
aG Once >. Are aG Nes %'AeG+ bG t%ice pr'/,%t bG No /e$&4ere/ cGdaily &( t&*e

;1

7. Are .', +at&+)&e/ B&th the +,pp$. ') %'Ae /,r&(0 ea%h /e$&4er. aG Nes 1:. I) N' the( YKK aG Improper products delivery cG othersXX" 11. Y',r aG 2.12 +a$e+ per bG 12.92 BeeA 6N'. ') %a+e+; bG Improper +illing system bG No

cG 92 above

12. 5hat Fa%t'r+ *aAe+ the Reta&$er+ t' +e$$ "E"SI &( the&r ',t$et+K

aG +rand Name dG :argin J other +enefits

bG D5ecutive Relationship

cG customer demand

1E. 5h&%h pr'/,%t ') C'%a8 %'$a &+ *'+t$. /e*a(/e/ 3. %'(+,*er+ &( Reta&$ St're+K

aG 'oca.cola dG 8anta

bG #humps up eG Limca

cG Sprite fG :aa(a

19. 5h&%h pr'/,%t ') "ep+&C' &+ *'+t$. /e*a(/e/ 3. %'(+,*er+ &( Reta&$ St're+K

aG ,epsi dG @ 0p

bG :ountain -e% eG :iranda

cG -iet ,epsi

1<. D' .', )ee$ .', are 0ett&(0 Bhat .', pa&/ )'r &( re0ar/+ t' -,a$&t. a+ Be$$ a+ -,a(t&t.K

;9

aG Nes in terms of 6uality bG Not in terms of 6uality cG Nes in terms of 6uantity dG Not in terms of 6uantity

eG both

1H. H'B /' .', rate %'*pa(. +er4&%eK

'oca cola ,epsi OthersF:ention G

D5cellent D5cellent D5cellent

$ood $ood $ood

Satisfactory Satisfactory Satisfactory

+ad +ad +ad

1I. Are .', &()'r*&(0 a3',t the re4&eBe/ D&+%',(tG+ '( C'Ae pr'/,%t+K aG Nes bG No

1>. *o% important are each of the follo%ing %hen choosing a product of a particular +rand" N'. ') Re+p'(/e(t+ #aste 'ustomer Service *ealth 'onvenience Speed Location Atmosphere ariety ,rice

17. 5h&%h Bra(/ ha+ a B&/e ra(0eK aG 'oca cola bG ,epsi cG Others FmentionG

2:. Re*arA+ NNNNNNNNNNNNNNNNNNNNNNNN.

;B