1

CHAPTER 1
INTRODUCTION













2


Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer,
marketer and distributor of non-alcoholic beverage concentrates and syrups, used to
produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling
and canning operators, distributors, fountain retailers and fountain wholesalers. The
Companys beverage products comprises of bottled and canned soft drinks as well as
concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also
produces and markets sports drinks, tea and coffee. The Coca- Cola Company began
building its global network in the 1920s. Now operating in more than 200 countries and
producing nearly 400 brands, the Coca-Cola system has successfully applied a simple
formula on a global scale: Provide a moment of refreshment for a small amount of
money- a billion times a day.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that
system is dedicated to people working long and hard to sell the products manufactured by
the Company. This unique worldwide system has made The Coca-Cola Company the
worlds premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,
Coca-Cola, more than any other consumer product, has brought pleasure to thirsty
consumers around the globe. For more than 115 years, Coca-Cola has created a special
moment of pleasure for hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers through
a worldwide system of superior brands and services, thus increasing brand equity on a
global basis. They have nine aims at managing their business well with people who are
strongly committed to the company values and culture and providing an appropriately
controlled environment, to meet business goals and objectives. The associates of this
Company jointly take responsibility to ensure compliance with the framework of policies
and protect the companys assets and resources whilst limiting business risks.




3









CHAPTER 2
INDUSTRY PROFILE












4

SOFT DRINKS INDUSTRY IN INDIA

(Hierarchy chart-1)
INDIAN BEVERAGES INDUSTRY

Beverages can be classified as non-alcoholic Beverages and Alcoholic Beverages.

NON ALCOHOLIC BEVERAGES
MALTED FOOD & HEALTH BEVERAGE INDUSTRY

The Rs. 14.4 brand malted foods market is composed of two segments brown and white.
While the brown drinks are held to be as energy boosters, the white drinks are regarded as
milk substitutes.
Malted beverages with nutritional attributes control around 70% of the total market and
energy drinks (brown beverages) account for the rest. The malted food drink industry is

dominated by few players. These include brands such as Horlicks, Complan and Viva,
which are mainly known as white beverages. Boost, Bournvita, Milo and Maltova on the
other hand are classified as brown drink. Smithkline Beecham's Horlicks and Boost
dominate the segment with around 65 % of the market share.
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-
Carbonated
Cola Non-Cola Non-Cola

5


TEA INDUSTRY
The Rs 86 billion Indian tea industry's leaders have launched a number of instant tea
drinks for the new-generation consumers. Tea has managed to remain on top despite
repeated onslaughts by other beverage segments largely because of its price advantages.
India has a vast domestic market. About 88 per cent of tea grown in India belongs to CTC
variety. India generally produces black tea. Black tea can be classified into two groups-
Orthodox tea and Crush, Tear and Curl (CTC), a cheaper variety depending on the system
of processing the green leaves.
Consumers in different parts of the country have heterogeneous taste. Dust tea is very
popular in the south and in central India. In the western states, good quality loose tea is
preferred in Gujarat, whereas in Maharashtra, consumers provide a large market to packet
as well as unbranded tea. The eastern states of West Bengal and Orissa and northern
states consume CTC.
The main players in the tea industry are Hindustan Lever, Tata Tea, Williamson Magors,
George Williamson, Harrisons Malayalam, McLeod Russel, Bishnauth Tea, Dhunseri
Tea, Warren tea, AFT Industries. These ten companies took together account for
approximately 75 per cent of the turnover. In the packet / branded tea segment Hindustan
lever is the leader. The major segment of the market is dominated by the unorganized
players. Besides, many local brands have entered the packaged tea segment. There are
about1000 brands of tea in the country and out of which more than 90 % brands are
represented by the regional players. Regional brands have increased their market share
from about 37 per cent to around 50 per cent.
COFFEE INDUSTRY
Coffee is consumed largely in the southern states. The size of the total packaged coffee
market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee market was
61:39 in 2000 as against 59:41 in 1995.

CARBONATED BEVERAGES AND JUICES INDUSTRY
The total soft drink (carbonated beverages and juices) market is estimated at 284 million
crates a year or US$ 1 billion. The market is highly seasonal in nature with consumption
varying from 25 million crates per month during peak season to 15 million during

6

offseason. The market is predominantly urban with 25 per cent contribution from rural
areas. Coca cola and Pepsi dominate the Indian soft drinks market.

ALCOHOLIC BEVERAGES
Alcoholic beverages are growing industry in India. The alcoholic beverages industry in
India is generally divided into two main categories-Industrial Alcohol and Potable
Alcohol. Potable Alcohol segment comprises some categories as Beer, Country Liquor,
Indian Made Foreign Liquor (IMFL) and wine. IFML primarily comprises wine, vodka,
gin, whisky, rum and brandy. United Breweries Ltd, Shaw Wallace, MC Dowell & Co
Ltd (part of the UB Group), Radico Khaitan, Mohan Meakins, Sula Vineyards, Mount
Shivalik, Seagram India Ltd are among the familiar names in the alcoholic beverage
industry in the country. UB accounts for nearly 40 per cent of total domestic beer sales
and controls close to 50 per cent of the brewing capacity. United Breweries (UB) Ltd, and
Millennium Alcobev Ltd (MABL), a three-way joint venture with UK's Scottish &
Newcastle (S&N) and UB group, now manage almost half of the beer sales in the world's
second most populous market. Strong beer, which has 5% of alcohol content, outsells
mild beer in India and accounts for more than 68 % of the total sales.
The Indian wine market, estimated at 5 lakh cases annually, has witnessed robust 30%
growth over the past few years. The domestic production is having a growth of about 20
per cent.












7


CHAPTER 3
COMPANY PROFILE















8




The Coca-Cola Company
Coke would rather be long term wiser, than being short term
smarter Abraham Ninan
Director External Affairs,
Coca-Cola, India





9

COCA COLA ENTERPRISES INC.

TYPE : PUBLIC (NYSE:CCE)

FOUNDED : 1926

HEAD QUARTERS : ATLANTA, GEORGIA, U.S.A.

CHIEF EXECUTIVE OFFICER : MUTHER KENT

CHIEF FINANCIAL OFFICER : GRAY P. FAYARD

INDUSTRY : BEVERAGES

REVENUE : $46.854 BILLION USD(2013)

OPERATING INCOME : $10.228 BILLION USD

NET INCOME : $8.584 BILLION USD

EMPLOYEES : 1,30,600(2013)




10

HI STORY
1886-1892
It was 1886, like many people who change history, John Pemberton, an Atlanta
pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant,
caramel-coloured liquid and, when it was done, he carried it a few doors down to Jacobs'
Pharmacy. There, the mixture was combined with carbonated water and sampled by
customers who all agreed this new drink was something special.
Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote it
out in his distinct script. To this day, Coca-Cola is written the same way. In the first year,
Pemberton sold just 9 glasses of Coca-Cola a day.
A century later, The Coca-Cola Company has produced more than 10 billion gallons of
syrup. Unfortunately for Pemberton, he died in 1888 without realizing the success of the
beverage he had created.
Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler
secured rights to the business for a total of about $2,300. Candler would become the
Company's first president, and the first to bring real vision to the business and the brand.
1893-1904
Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention into a
business. He knew there were thirsty people out there, and Candler found brilliant and
innovative ways to introduce them to this exciting new refreshment. He gave away
coupons for complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola
brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By
1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-
Cola in bottles. He sent 12 of them to Candler, who responded without enthusiasm.
Despite being a brilliant and innovative businessman, he didn't realize then that the future
of Coca-Cola would be with portable, bottled beverages customers could take anywhere.
He still didn't realize it five years later, when, in 1899, two Chattanooga lawyers,

11

Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler to
bottle and sell the beverage for the sum of only one dollar.
1905-1918
Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none
too pleased about the proliferation of copycat beverages taking advantage of its success.
This was a great product, and a great brand. Both needed to be protected. Advertising
focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine"
and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure people they were
actually getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana, won
a contest to design a bottle that could be recognized in the dark. In 1916, they began
manufacturing the famous contour bottle. The contour bottle, which remains the signature
shape of Coca-Cola today, was chosen for its attractive appearance, original design and
the fact that, even in the dark, you could identify the genuine article.
As the country roared into the new century, The Coca-Cola Company grew rapidly,
moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S.
territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there would be about
1,000.
1919-1940
Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff.
In 1923, four years after his father Ernest purchased the Company from Asa Candler,
Woodruff became the Company president. While Candler had introduced the U.S. to
Coca-Cola, Woodruff would spend more than 60 years as Company leader introducing
the beverage to the world beyond.
Woodruff was a marketing genius who saw opportunities for expansion everywhere. He
led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the
Olympic Games for the first time when Coca-Cola travelled with the U.S. team to the
1928 Amsterdam Olympics. Woodruff pushed development and distribution of the six-
pack, the open top cooler, and many other innovations that made it easier for people to

12

drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge
success, but a big part of people's lives.
1941-1959
In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that "every
man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it
costs the Company." In 1943, General Dwight D. Eisenhower sent an urgent cablegram to
Coca-Cola, requesting shipment of materials for 10 bottling plants. During the war, many
people enjoyed their first taste of the beverage, and when peace finally came, the
foundations were laid for Coca-Cola to do business overseas.
Woodruffs vision that Coca-Cola be placed within "arm's reach of desire," was coming
true from the mid-1940s until 1960, the number of countries with bottling operations
nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola
was part of a fun, carefree American lifestyle, and the imagery of its advertising happy
couples at the drive-in, carefree moms driving big yellow convertibles reflected the spirit
of the times.
1960-1981
After 70 years of success with one brand, Coca-Cola, the Company decided to expand
with new flavours Fanta, originally developed in the 1940s and introduced in the 1950s;
Sprite followed in 1961, with TAB in 1963 and Fresco in 1966. In 1960, The Coca-Cola
Company acquired The Minute Maid Company, adding an entirely new line of business
juices to the Company.
The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola
found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey
and more.
Advertising for Coca-Cola, always an important and exciting part of its business, really
came into its own in the 1970s, and reflected a brand connected with fun, friends and
good times. The international appeal of Coca-Cola was embodied by a 1971 commercial,
where a group of young people from all over the world gathered on a hilltop in Italy to
sing "I'd Like to Buy the World a Coke." In 1978, The Coca-Cola Company was selected

13

as the only Company allowed selling packaged cold drinks in the People's Republic of
China.
1982-1989
The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much
change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta
became chairman of The Board of Directors and CEO of The Coca-Cola Company.
Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a
strategy he called "intelligent risk taking."
Among his bold moves was organizing the numerous U.S. bottling operations into a new
public company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, the
very first extension of the Coca-Cola trademark; within two years, it had become the top
low-calorie drink in the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola,
the first change in formulation in 99 years. In taste tests, people loved the new formula,
commonly called new Coke. In the real world, they had a deep emotional attachment to
the original, and they begged and pleaded to get it back. Critics called it the biggest
marketing blunder ever. But the Company listened, and the original formula was returned
to the market as Coca-Cola classic, and the product began to increase its lead over the
competition a lead that continues to this day.
1990-1999
The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby World
Cup and the National Basketball Association. Coca-Cola classic became the Official Soft
Drink of NASCAR racing, connecting the brand with one of the world's fastest growing
and most popular spectator sports.
And 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign,
and the world met the lovable Coca-Cola Polar Bear for the first time. New markets
opened up as Coca-Cola products were sold in East Germany in 1990 and returned to
India in 1993.

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New beverages joined the Company's line-up, including Power sports drink, childrens
fruit drink and bottled water. The Company's family of brands further expanded through
acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the
U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage brands in more than 120
countries around the world. By 1997, the company already sold 1 billion servings of its
products every day, yet knew that opportunity for growth was still around every corner. In
1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well
into its second century, the Company's goal is to provide magic every time someone
drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to
Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest
comers of the globe, you can still find Coca-Cola. Coca-Cola is committed to local
markets, paying attention to what people from different cultures and backgrounds like to
drink, and where and how they want to drink it. With its bottling partners, the Company
reaches out to the local communities it serves, believing that Coca-Cola exists to benefit
and refresh everyone it touches. From the early beginnings when just nine drinks a day
were served, Coca-Cola has grown to the worlds most ubiquitous brand, with more than
1.4 billion beverage servings sold each day. When people choose to reach for one of The
Coca-Cola Company brands, the Company wants that choice to be exciting and
satisfying, every single time.

History of Bottling


15


Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today.
1894 A modest start for a bold idea
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called
Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-
Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to
Asa Griggs Candler, who owned the Company. Candler thanked him but took no action.
One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on
fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build business
around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph
B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United
States (specifically excluding Vicksburg) -- for the sum of one dollar. A third
Chattanooga lawyer, John T. Lupton, soon joined their venture.
1900-1909 Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling rights to
local entrepreneurs. Their efforts were boosted by major progress in bottling technology,
which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling
plants were operating, most of them family-owned businesses. Some were open only
during hot-weather months when demand was high.

16

1916 Birth of the contour bottle
Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with
imitators. A group representing the Company and bottlers asked glass manufacturers to
offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The
contour bottle became one of the few packages ever granted trademark status by the U.S.
Patent Office. Today, it's one of the most recognized icons in the world - even in the dark!
1920s Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fuelled steady growth. Six-bottle cartons were a huge hit after their
1923 introduction. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.
1920s and 30s International expansion
Led by long-time Company leader Robert W. Woodruff, chief executive officer and
chairman of the Board, the Company began a major push to establish bottling operations
outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium,
Italy, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-
Cola was being bottled in 44 countries.
1940s Post-war growth
During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General
Eisenhower's base in North Africa. Many of these war-time plants were later converted to
civilian use, permanently enlarging the bottling system and accelerating the growth of the
Company's worldwide business.
1950s Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type the
traditional 6.5-ounce contour bottle, or larger servings including 10, 12 and 26-ounce
versions. Cans were also introduced, becoming generally available in 1960.

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1960s New brands introduced
Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand Coca-
Cola in the 1960s. Mr.Pibb and Mello Yello were added in the 1970s. The 1980s brought
diet Coke and Cherry Coke, followed by Powerade and Dasani in the 1990s. Today
hundreds of other brands are offered to meet consumer preferences in local markets
around the world.
1970s and 80s Consolidation to serve customers
As technology lead to a global economy, the retailers who sold Coca-Cola merged and
evolved into international mega-chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a number of bottler
consolidations to assure that its largest bottling partners would have capacity to lead the
system in working with global retailers.
1990s New and growing markets
Political and economic changes opened vast markets that were closed or underdeveloped
for decades. After the fall of the Berlin Wall, the Company invested heavily to build
plants in Eastern Europe. And as the century closed, more than $1.5 billion was
committed to new bottling facilities in Africa.
21st Century
The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as people seek brands that honour local
identity and the distinctiveness of local markets. As was true a century ago, strong locally
based relationships between Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.
HINDUSTAN COCA-COLA BEVEAGES PRIVATE LIMITED
(HCCBPL)
ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveals its formula to the Government and reduces its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in

18

India. Coca-Cola re-entered the Indian market on 26
th
October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company
instant ownership of the top soft drink brands of the nation. With access to 53 of Parles
plants and a well set bottling network, an excellent base for rapid introduction of the
Companys International brands was formed. The Coca-Cola Company acquired soft
drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as
these products had achieved a strong consumer base and formed a strong brand image in
Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a
part of range of products of the Coca-Cola Company.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry
into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the
Coca-Cola Company. However, this was based on numerous commitments and
stipulations which the Company agreed to implement in due course. One such major
commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favour of resident shareholders by June 2002.
Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing
locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned
Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the
manufacture process of a range of products for the company. It also has a supporting
distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all
goods and services required to cater to the Indian market are made locally, with help of
technology and skills within the Company. The complexity of the Indian market is
reflected in the distribution fleet which includes different modes of distribution, from 10-
tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of
Indian cities and trademarked tricycles and pushcarts.
Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life
ho to aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted
in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between
2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of
the new packaging of 200 ml returnable glass bottles which were made available at a
price of Rs.5 per bottle. This new market accounted for over 80% of Indias new Coca-
Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches

19

their business should benefit, thereby inducing them to uphold these values, enabling the
Company to achieve success, recognition and loyalty worldwide.

(Diagram No-
2)
HCCBPL is large beverage bottling company, responsible for the manufacture,
package, sale and distribution of beverage under the trademark the Coca-Cola
Company, USA, in India.

HCCBPL has an extensive distribution system spanning more than a million
outlets operating with world class execution standards. The focus of the system is
to develop strong customer value while delivering preferred choice of refreshment
at an arm's length of desire to the consumer.
HCCBPL's Product Portfolio has an extensive range to choose from:

COBO
FOBO
CONTRACT PACKAGING

20

Sparkling Beverages Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca,
Kinley Soda, Schweppes Tonic Water.
Still Beverages Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh,
Minute Maid100% Juices (Apple, Grapes, Orange, and Mixed Fruit), Minute
Maid range of fruit flavoured drinks.
Water - Kenly, Bonaqua.
Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on building
world class operations based on principles of safety, profitability and solid
governance to claim sustained growth. As part of our journey of moving towards
being a World Class Company, we have strengthened our organization in terms of
Supply Chain, Infrastructure, Market Execution, People, Processes, Compliance,
Governance and Route-to-Market. This approach has enabled us to build our
portfolio through launching new packs and brands, coupled with a competitive
pricing strategy based on a balance of value pricing and eliminating waste.

Vision:
To make every Indians first choice of refreshment available within easy
reach.
Mission:
To build a consumer driven, customer-focused, profitable, sustainable, and
socially responsible business in India.
Values
Leadership
Empowerment
Passion for wining
Citizenship
Integrity
Accountability
Teamwork


INDIAN BUSINESS MODEL:-


21




(Distribution Line Diagram No-3)
PRESENT SCENARIO

Latter on when globalizing our economy opening it up for MNCs like Pepsi, Coca-Cola,
and Cadbury etc to enter the real cola war had begun. Although the import and
manufacture of international brands like coke and Pepsi is enhanced in India, the local
brands are being stabilized by advertisement good quality and low cost. Ever since the
entry of Pepsi, the competition between Pepsi and Parle was a battle of small arms, as the
alliance of Parle with coke and constant reveal of sophisticated management techniques
by Coke and full fledge highly innovative promotional activates by Pepsi has really made
the industry as a battle field of cannons.One can make above statement by seeing
advertisement expenditure and investment of Coke and Pepsi. Coke is expected to pump
2400 crores and Pepsi 300 crores into the Indian markets apart their initial investment of
250 crores and 500 crores respectively.


22

MARKET SHARE

Cola products account for nearly 61-62% of the total soft drink market. The brands that
fall in this category are Pepsi, Thumps Up, Diet Coke, Diet Pepsi etc. Non-Cola segments
which constitute 36% can be divided into four categories based on the types of flavors
available namely orange, cloudy Lime, Clear Lime and mango. Coca Cola, king of soft
drinks industry boasts a global market share of around 50% followed by Pepsi Company
at about 21% and Cadbury Schweppes at 7%.

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED,
BIDADI-BANGALORE.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry
into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the
Coca-Cola Company.
Hindustan Coca-Cola Beverages Private Limited, Bidadi unit was formally inaugurated
on 12 February, 2000 by Chief Minister Mr. S. M. Krishna.
The Bidadi Unit is spread over an area of 15 acres. The company follows the policies of
The Coca-Cola Company, Atlanta and also by the Indian headquarters, Gurgoan. The
Bidadi unit is spread over an area of 15 acres. This is the State of the art bottling facility
with four lines one of which is a pet line.
Manufacturing Capability
There are 5 Bottling lines in Bidadi plant and 1 Canister line and 1 Bag in Bag line. Out
of 3 PET line, one has a capacity of 200 bottles per minute (carbonated soft drinks), one
has a capacity of 600 bottler per minute (carbonated soft drinks) and one water line which
has a capacity of 200 bottles per minute. There are two RGB lines out of which one has a
capacity of 600 bottles per minute (carbonated soft drinks) and there is one Maaza line
which has a capacity of 155 bottles per minute. The brands produced here include Coca-
Cola, Sprite, Fanta, Thums Up, Limca, Maaza, Kinley Soda, Kinley Mineral Water and
Diet Coke. Hindustan Coca-Cola Beverages Private Limited has 3 COBO (Company
Owned Bottling Operations) region and 27 COBO units. Hindustan Coca-Cola Beverages
Private Limited handles manufacturing of finished products, selling and delivery to
customer. HCCBPLs vision is to create a World Class Selling Organization and a
Culture of Operating Excellence to continually improve consumer experience, customer
satisfaction, employee capability and company profitability.

23





















24






CHAPTER 4
ORGANISATIONAL
HIERARCHY










25







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

In Cola section
Coca Cola, Diet Coke, Thums Up



In Lemon Section
Sprite, Limca



26




In Orange Section
Fanta Orange



In Juice Section

Maaza, Minute Maid PULPY ORANGE


In Soda Water and Bottled Mineral Water Section
Kinley Soda, Kinley Mineral water


27






1. Organization Structure
India Organization Structure


(ChartNo-5)








CEO
VP,
Sales
VP,
Supply
Chain
CFO
Director
, HR
VP, BSG
Region
VP,
North
Region
VP,
South
Region
VP,
Central

28



Region Organization Structure

(Chart No-6)









Region VP
AGM/AOD
Unit 1
AGM/AOD
Unit 2
AGM/AOD
Unit 3
AGM/AOD
Unit 4
Region
Finance
Region HR
Region
Customer
Service
Region
External
Affairs
Region Cold
Drink
Region Legal
Region BSG
Region Director/
Manager
Market Execution
Region
Capability
Development
Region
Channel

29







CHAPTER 5
FUNCTIONAL DIVISION









30




Hindustan Coca Cola Beverages Private Limited, Bidadi Unit
Organization Structure
Direct Report to Factory Manager
5.1 PRODUCTION DEPARTMENT
The function of this department is to execute the production and production related
activities in an effective and efficient manner.

Factory Manager
Manager Production
Manager Maintenance
Manager Quality
Manager Shipping
Team Leader- Stores
Manager Human Resources

31

(Chart-7)

Department Structure-2


(Chart-8)

Factory Manager
HOD PRDODUCTION AND
MAINTAINENCE
4 LINE
MANAGERS
HOD QUALITY
4 QUALITY
EXECUTIVES
ADMI
NISTR
ATIO
N
Depart
ment

32



PRODUCTION PROCESS



33



34




(Production Layout)


35




















Figure: Bottling and Filling Process





Figure: Coca-Cola Filling and Bottling Process
( Diagram No-9 )

Raw Water Plant.
BIDADI
LAKE
WATER
TREATMENT
PLANT
SUGAR
DUMPING
AREA
SYRUP ROOM
PET BOTTLING PROCESS
PERFORMA
BLOWN
FILLING
PROCESS
CHECKING WITH
VIDEO SENSOR
LABELLING
PALLETIZING


36

The whole production process is shown in the above chart which shows how raw material
passes through different process and results into the finished products. First of all raw
water is collected from the Bidadi lake in Raw Water Plant. Collected water is then
purified through 7 layer of sedimentation process. Purified water is then passed through
carbonated filter to make soft water. Water filtered through carbonated filter is moved to
syrup room where it is mixed with concentration and sugar. Then this solution is passed
to bottling floor for being filled up in pet bottles.
Pet bottles are made by blowing the Performa received from certified suppliers. Performa
blowing is done with nitrogen gas to make it hard bound. As the Performa takes the shape
of the pet bottle it will be filled up with solution. Then, bottle is labelled with appropriate
labels. Quality assurance is being implemented through the use of video sensors for
overall production process. Any flaws found during this process will lead to rejection of
bottles automatically.
Finally, the pet bottles are moved through automatic palletizer to wrap with thin plastic so
that it is ready for shipment.














37

THE MANUFATURING OF THE PRODUCTS OF COCA-COLA
INVOLVES THE FOLLOWING STEPS:

Water is received from the Bidadi and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure cleansed
water.

In the syrup room, the concentrate received from another bottling plant situated at Pune, is
blended with the sugar syrup.

Once both the water and the final syrup are ready, they are both mixed together and
Carbon Dioxide is also added to the mixture to form the final product.

On the other hand, simultaneously, PET Bottles are made by blowing the Performa which
are done by the Blower machine.

The product is finally filled in the PET bottles, capped, labelled and cased in order to be
sent into the warehouse for distribution.

There are 2 Bottling lines in Bidadi plant. Out of 2 PET lines, one has a capacity of 4000 bottles
per hour (noncarbonated drinks) and another has the capacity of 3600 bottles per hour (carbonated
drinks).












38


PRODUCTION AND MAINTENANCE DEPARTMENT

Organisation study was initiated by HOD of quality department Mr. Amresh and Mr.Anmol HOD
of production and maintenance. We were mainly placed in the production and maintenance
department guided by Mr.Anmol HOD. Bottle Parameter test was done by us. Testing is done in
lab and sometimes from market sample is taken and testing is done.1000ml pet water bottle
quality testing was done. Gate area thickness, base clearance ,height, base thickness, label panel
thickness and upper shoulder thickness, removal torque, pressure test, label panel weight test,
upper shoulder weight test, base weight test, bottle burst test, bottle diameter, net content test was
done. From this reading, cp and cpk value was calculated.
Cp and Cpk.
Process Capability is the ability of a process to meet product specifications/technical specification.
It is conducted only when the process is normally distributed. Process capability is the ability of
the process to make a product within its tolerance. Process capability enables successful
manufacturing and sales. It helps to prevents scrap, sorting, rework. It allows job to run well.It has
major impact on cost and schedule.
This Cpk is about 2 very good, This Cpk is less than 1 we desire a minimum of 1.33 and
ultimately we want 2 or more.

HOW TO MEASURE Cp?
Cp= USL- LSL
6
IfCp<1.0 poor process, Cp=1.0 so ok, Cp1.3 -1.5 good,Cp=2 excellent, that is6 sigma.
Cp is not enough, we need Cpk because Cp tells you only about the smartness of the curve
Cpk tells about the positing/ location of the curve.
CPK =MIN( USL-MEAN, MEAN-LSL)
3 3
Importance of Cp and Cpk

To ensure quality.
To ensure that process capability defect free.
To reduce the wastage.



39


5.2 QUALITY DEPARTMENT
To maintain Quality of product while purchasing and producing product.
The quality system is committed to ensure:
Consumer satisfaction.
Protection and enhancement of the trademark and brand image.
Production of 100% quality product.
Responsible; environmental friendly citizen.
The quality is maintained at different levels; they are
Production material sugar, water and co2.
Auxiliary material water, treatment and syrup treatment.
Packing materials- cartoons, labels etc.





40

Department Structure

(Chart-
10)
Responsibilities of Microbiologist
Responsible for Microbiological testing, water sampling, online samples and
market samples.
Responsible for documentation for test reports and generation of other reports as
required and proper handling and filling of reports.
Responsible for housekeeping/ sanitation parameters in plant including lab.
Responsible for periodic checking shelf life samples and market samples.
Responsible for incoming raw materials checking.
Responsible for Responsible for calibration of hydrometer/ density meter.

Factory Manager
Quality Manager
Team
Leader-QA
Process
Executive-
QA
Team
Leader- QA
Line
Incharge
Executive-
QA
Trainees
RMPM
Executive
QA

Microbiolog
ist
Executive-
QA
Fountain
Chemist
Executive
QA

41

Chemist
Responsible for quality testing of raw materials of production.
Supervisor of the syrup preparation process.
Responsible for checking quality parameters.
Test of shelf sample, market sample.
Documentation of syrup reports/ preparation of various reports.
Responsible for quality parameters for online production process.
Executive
Responsible for quality norms for entire plant.
Responsible for ensuring product specification and mixing instruction.
Responsible for overall required quality test of raw materials, packing and
finished products as per specification.
KAIZEN PROCESS
Kaizen meaning continuous or ongoing improvement in Japanese it is an inseparable
aspect of the management of quality. Kaizen has basically do with small, step by step
continuous improvements. Kaizen philosophy believes that people at all levels, including
the lowermost level in the organizational hierarchy.
APPLICATION OF KAIZEN AT HCCBPL
Customer orientation.
Total quality control
Quality circles
Suggestion system
Total Productive Maintenance(TPM)
Productivity improvement
New product development
Labour-management relation
Zero defects
Just-in-time system



42


5.3 MAINTAINANCE DEPARTMENT
Department Structure

(Chart-
13)
Ninety per cent of the problems come through cleanliness.in a year we do health check of
plant for 4 times a year.
Maintenance Department has 3 different approaches to maintenance. Breakdown
maintenance is done when the breakdown has already occurred. The Purpose of
Breakdown maintenance is to reduce the downtime losses and reduce the impact of the
breakdown on immediate sales. Preventive Maintenance is best for equipment that has
unpredictable performance, complexity and history of erratic behaviour. In Predictive
maintenance, they anticipate probable problems that can happen.
The functions of Maintenance Department includes
Lab Equipment maintenance
Maintenance of Forklift
Bottle washer maintenance
Electrical maintenance
Facility and Grounds maintenance
Filler maintenance
Fountain Equipment maintenance
Maintenance of PET and Maaza line Equipment.
Factory
Manager
Manager
Maintenance
Team Leader-
Maintenance
Executive-
Maintenance

43



5.4. SHIPPING DEPARTMENT
Function of Shipping Department includes
To maintain glass breakage below 1.1 % of total production.
To achieve 100 % dispatches for trade against order within 24 hrs.
Achieve GMP (Good Manufacturing Practices) of 85 %
Department Structure


(Chart-
14)
Responsibilities of Manager
Responsible for loading/ unloading operations and documentations.
Responsible and ensure brand wise inventory handling of empties/ fills.
Responsible for allocation of labour in shipping process (load/ unload).
Ensure that warehouse and yard is always clean and manages storage space.

Factory
Manager
Manager -
Shipping
Executive-
Shipping

44


Responsible for proper handling/ storage of finished products transferred from
production to warehouse.
Responsible for maintaining accurate physical counting of empties on a daily
basis.
Prepare reports with respect to empties sorting and bottle breakage during loading/
unloading operations.
Executives
Responsible for sales invoice verification on a daily basis.
Responsible for preparation of waybill register.
Responsible for periodical verification of all excisable materials and identify/
notify.
Responsible for loading/ unloading operations and documentation.
Responsible and ensure brand wise inventory handling of empties/ fills.
Responsible for allocation of labour in shipping process (load/ unload).
Responsible for the warehouse and yard is always kept clean and manage storage
space.
Responsible for proper handling/ storage of finished products transferred from
production to warehouse.
Responsible for maintaining accurate physical counting of empties on a daily
basis.
Prepare reports with respect to empties sorting and bottle breakage loading/
unloading operations.
Responsible for selection and monitoring of transport activities.
Responsible for maintaining GMP norms in finished goods.
Responsible for proper dispatches of customers within stipulated time.






45



5.5 STORES DEPARTMENT
Department Structure

(Chart-
15)
Functions
The process of stores department starts from Receipts and then issuing and Inventory
Planning. In Inventory planning there is a status ID for materials i.e. Red- Reject, Green-
accepts and Yellow-On holds. Using FEFO (first Expiry First Out)
Responsibilities
Direct responsibility for all stores including raw materials, packing materials and
spare parts.
Direct responsibility for purchase and availability of all materials for production.
Direct responsibility for control of raw materials, packing materials and spares.
Direct responsibility for maintaining the record of receipts, issues and reconciling
physical inventory.
Direct responsibility for implementation for inventory management systems.
Factory
Manager
Team
Leader-
Stores
Executive-
Stores

46

Direct responsibility for building constructive relationship with material suppliers
and giving delivery schedules for raw material and spares.
Direct responsibility for identification of inspection and test status for all
materials.

Provide assistance in negotiations with suppliers and developing local suppliers.
Direct responsibility for ensuring stock rotation of raw packing materials.
Direct responsibility for selection, coaching, feedback and development of store
personal.
Direct responsibility for discipline in store work force.
Direct responsibility for ensuring audit of inventory records.
Direct responsibility for reporting inventory to the relevant managers and
personal.
Direct responsibility for responsibility of personnel, facilities and equipment.

5.6 SUPPLY CHAIN DEPARTMENT
Department Structure:


(Chart-16)
Functions
Factory
Manager
Manager -
Supply Chain
Team Leader-
Supply Chain
Executive -
Supply Chain

47

After receiving information from user department, it is the responsibility of the
Supply chain Department to get the quote from vendor.
After Purchase order, ensure for early release from Finance Department and
timely informing to vendor/ User Department and maintaining all details.

Track between Purchase Requisition to Purchase Order.
To maintain weekly report on money spent on each department.
To maintain list of authorised dealers and distributors.
To maintain report on Raw material and Purchase material tracking, Critical item
list, Material in Transit.
Filing Purchase order with signature as per Certificate Of Analysis.
All Purchase order amendments should be made after approval from Finance
Department.

5.7. MARKETING DEPARTMENT

(Chart-
17)



A.G.M
Marketing
Officer
Marketing
Manager
Marketing
Executive
Office
Staff

48


Marketing Mix
Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing
objectives. It has a classification for these marketing tools. These marketing are classified
and called as the Seven Ps i.e. Product, Positioning, Packaging, Price, Promotion, Place &
Distribution and Physical Distribution Issues.
The most basic marketing tool is product which includes product design, quality, features,
branding, and packaging. A critical marketing tool is price i.e. the amount of money that
customers pay for the product. It also includes discounts, allowances, credit terms and
payment period.
Place is another key marketing mix tool. And it includes various activities the company
undertakes to make the product accessible and available to the customer. Some factors
that decide the place are transport facilities, channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the activities that the
company undertakes to communicate and promote its product to target market. Promotion
includes sales promotion, advertising, sales force, public relations, direct marketing, etc.

Product

Many products are physical objects that you can own and take home. But the word
product means much more than just physical goods. In marketing, product also refers to
services, such as holidays or a movie, where you enjoy the benefits without owning the
result of the service. Businesses must think about products on three different levels,
which are the core product, the actual product and the augmented product. The core
product is what the consumer is actually buying and the benefits it gives. Coca Cola
customers are buying a wide range of soft drinks. The actual product is the part and
features, which deliver the core product. Consumers will buy the coke product because of
the high standards and high quality of the Coca Cola products. The augmented product is
the extra consumer benefits and services provided to customers. Since soft drinks are a
consumable good, the augmented level is very limited. But Coca Cola do offer a help line
and complaint phone service for customers who are not satisfied with the product or wish
to give feedback on the products.




49


Positioning

Once a business has decided which segments of the market it will compete in, developed
a clear picture of its target market and defined its product, the positioning strategy can be
developed. Positioning is the process of creating, the image the product holds in the mind
of consumers, relative to competing products.
Coca Cola and Franklins both make soft drinks; although Franklins may try to compete
they will still be seen as down market from Coca Cola. Positioning helps customers
understand what is unique about the products when compared with the competition. Coca
Cola plan to further create positions that will give their products the greatest advantage in
their target markets. Coca Cola has been positioned based on the process of positioning
by direct comparison and have positioned their products to benefit their target market.
Most people create an image of a product by comparing it to another product, thus evident
through the famous battles between Coca-Cola and Pepsi products.

Packaging

Packaging, which is not as highly perceived by businesses, is still an important factor to
examine in the marketing mix. Packaging protects the product during transportation,
while it sits in the shelf and during use by consumers, promotes the product and
distinguishes it from the competition. Packaging can allow the business to design
promotional schemes, which can generate extra revenue and advertisements. Coca-Cola
has benefited from packaging the product with incentives and endorsements on the
labelling as a promotional strategy to increase its volume of sales and revenue.

Price:

Price is a very important part of the marketing mix as it can affect both the supply and
demand for Coca Cola. The price of Coca Colas products is one of the most important
factors in a customers decision to buy. Price will often be the difference that will push a
customer to buy our product over another, as long as most things are fairly similar. For
this reason pricing policies need to be designed with consumers and external influences in
mind, in order to effectively achieve a stable balance between sales and covering the
production costs. Price strategies are important to Coca Cola because the price determines
the amount of sales and profit per unit sold. Businesses have to set a price that is

50

attractive to their customers and provides the business with a good level of profit. Long
before a sale was ever

made .Coca Cola had developed a forecast of consumer demand at different prices which
inevitably determined whether or not the product came on the market, as well as the
allocation of adequate money and resources to produce promote and distribute the
product.

Pricing Strategies and Tactics:

The pricing Strategy a business will use will have to focus on achieving the marketing
plans objectives and support the positioning of the product, and take external factors
such as economic conditions and competitors in to account. There are 5 strategies
available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price
Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of
grabbing a foothold in the market and won a market share. Its product penetrated the
marketplace. Once customer loyalty is established as seen with Coca Cola it is then able
to slowly raise the price of its product. There has been a fierce pricing rivalry between
Coca Cola and Pepsi products as each company competes for customer recognition and
satisfaction. Till now it appears as if Coke has come up on top, although in order to gain
long term profits Coke had to sacrifice short term profits where in some cases it either
went under of just broke even, but as seen it has been all for the best.

Pricing Methods

Good pricing decisions are based on an analysis of what target customers expect to pay,
and what they perceive as good quality. If the price is too high, consumers will spend
their money on other goods and services. If the price is tool, the firm can lose money and
go out of business.

Pricing methods include: Cost based Pricing, Market based pricing and Competition
based Pricing. Over the years Coca has lost ground here in its pricing but has regained its
strength as it employed the Competition-based pricing method which allowed it to
compete more effectively in the soft drink market. Leader follower pricing occurs when
there is one quite powerful business in the market which is thought to be the market

51

leader. The business will tend to have a larger market share, loyal customers and some
technological edge, thus the

case currently with Coke; it was first the follower but through effective management has
now become the leader of the market and is working towards achieving the marketing
objectives of the Coca Cola. Coke controls 42% of the total carbonated soft drink market,
compared with Pepsi's 30%, according to Beverage Digest.
Promotion


Olympic 2012 IPL EURO 2012

In todays competitive environment, having the right product at the right place in the right
place at the right time may still not be enough to be successful. Effective communication
with the target market is essential for the success of the product and business. Promotion
is the p of the marketing mix designed to inform the market place about who you are, how
good your product is and where they can buy it. Promotion is also used to persuade the
customers to try a new product, or buy more of an old product. The promotional mix is
the combination of personal selling, advertising, sales promotion and public relations that
it uses in its marketing plan. Above the line promotions refers to mainstream.
PUSH & PULL STRATEGY
PUSH STRATEGY
HCCBPL is using Push strategy in which they use its sales force and trade promotion
money to induce intermediaries to carry, promote and sell the product to end users i.e.
consumers.
For example-as HCCBPL is giving free pet bottles and other trade schemes to
distributors, agency owners and retailers.

52


PULL STRATEGY
HCCBPL is also using Pull strategy in which they are using advertising and promotion to
persuade consumers to ask intermediaries for the company brand product by this way
HCCBPL inducing customer to order it from shopkeeper.
For example-HCCBPL is using flanges, display racks, tier racks, standees, mobile
hangers and visicooler brand strips.

Media

Advertising through common media such as television, radio, transport, and billboards
and in newspapers and magazines. Because most of the target is most likely to be exposed
to media such as television, radio and magazines, Coca Cola has used this as the main
form of promotion for extensive range of products. Although advertising is usually very
expensive, it is the most effective way of reminding and exposing potential customers to
Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests,
coupons, and free samples. These activities are an effective way of getting people to give
your product ago.

Place and Distribution

The place P of the marketing mix refers to distribution of the product- the ways of getting
the product to the market. The distribution of products starts with the producer and ends
with the consumer. One key element of the Place/Distribution aspect is the respective
distribution channels that Coca Cola has elected to transport and sells its product.
Selecting the most appropriate distribution channel is important, as the choice will
determine sales levels and costs. The choice for a distribution channel for any business
depends on numerous factors, these include:

How far away the customers are;
The type of product being transported;
The lead times required; and;
The costs associated with transport;

53


There are four types of distribution strategies that Coca Cola could have chosen from,
these are: intensive, selective, exclusive and direct distribution. It is apparent from the
popularity of the Coca Cola s product on the market that the business in the past used the
method of intensive distribution as the product is available at every possible outlet. From
supermarkets to service stations to your local corner shop, anywhere you go you will find
the Coca Cola products.

Physical Distribution Issues

Coca Cola needs to consider a number of issues relating to the physical distribution of its
soft drink products. The five components of physical distribution are, order processing,
warehousing, materials handling, inventory control, transportation. Coca-Cola must
further try to balance their operations with more efficient distribution channels. Order
Processing- Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery
to selling canters), as this is inefficient business functioning and is portrays a flawed
image of the product and overall business. Warehousing and inventory control-
warehousing of Coca Cola products is necessary.
Inventory control is another important aspect of distribution as inventory makes up a
large percentage of businesses assets. Choosing the correct and desired inventory measure
that Jacksons sees as most effective is vital. Jacksons must remember though that there
are factors involved with inventory control that can hinder the products sales and
customer perceptions (hazards, distribution from storage facilities, etc).Materials
handling- this deals with physically handling the product and using machinery such as
forklifts and conveyor belts. When holding products, then Coca-Cola has benefited from
purchasing or renting respective machinery.
Transportation- transporting Coca Cola products is the one most important components of
physical distribution. Electing either to transport the sports drink by air, rail, road or water
depends on the market (i.e. global, or domestic?) and depends on the associated costs.
The most beneficial transportation method for Coca Cola would be ROAD if the product
were moved around from storage to the cost centres.

5.8. HUMAN RESOURCE DEPARTMENT
Department Structure

54


(Char1
8)

Major functions of HR Department are
Recruitment.
Training and development.
Performance management system.
Administration/payroll.
Employee relation.
Legal compliances.
Compensation and benefit.
Retirement.

Recruitment
Recruitment policy: The Factory Manager and HR manager will recruit the
particular person and they will close within 30 days.

Area HR
Manager
Factory HR
Manager
Executive HR Security Officer
Administration
Support

55

Manpower sources of Organization: The manpower are recruited in the form of
Consultancy, Employee Exchange, Employee Reference, Work Interview etc.
For recruitment policy, they are not considering any reservation for any kind of
category of employees.
Selection
In a selection committee there will be Factory Manager, HR & particular
department head. For selection of employee, first it goes with department head
then HR and Factory Manager.

For technical people only they are conducting written exams. For other people,
there will be direct interview.
The interview is done by particular department head and HR manager basing on
vacancy of job in particular department. After recruiting he will be sent to
induction programme for one day. Afterwards they will be send to each
department for knowing the functioning and also for route to market.
TRAINING AND DEVELOPMENT POLICY
OBJECTIVES
To equip associates with the knowledge, skills and attitudes to perform effectively
on their current as well as anticipated future assignments
To ensure that associates have the necessary skills to meet business objectives


PROCEDURE
The Manager, Management Development well meet with the functional heads at
the beginning of each year to identify the training needs for each department. The
training needs would be linked to the corporate objectives as well as the current
competency levels of the associates. The training needs would be linked to the
corporate objectives as well as the current competency levels of the associates. .

56

Based on an analysis of the training needs identified, need-Based training
programs are designed and an annual Training Calendar will be compiled. This
document will be shared with the Executive Committee to get their feedback.
The training Calendar will be released within the one month of receiving all the
appraisals. It will contain a brief description of the programs, the recommended
target audience and the program schedules.
Internal training programs will be conducted if there is a minimum of 8
participants for a given program. Facilitators for these programs will include the
Manger, Management Development for monitoring.
After attending the program, the associate will complete the Training Evaluation
form and submit it to the Manager, Management Development for monitoring.
After attending the program, the associate will complete the Training Evaluation
form and submit it to the Manager, Management development. Associates
attending outstation-training programs will be reimbursed expenses as per the
travel policy guidelines relevant to them. This cost will be borne by each
associates department.
OBJECTIVE
To provide employees with an environment conductive to individual productivity, growth
and development, consistent with business conditions and the operating needs of the
company.
It is the companys policy to,
Manage employee relations in a fair and consistent manner.
Maintain effective communication practices
Be aware of and responsive to employee needs
Strive to maintain relationships among employees that merit their trust and
confidence and create an environment to enhance the quality of work life.

57



SERVICE CONDITIONS
OBJECTIVE
To ensure that all employee actions are consistent with the laid-out organizational
policies.
CONDITIONS OF SERVICE
An employee is required at all times to diligently and faithfully serve the company and
is required to devote his/her whole time and attention exclusively to the business and
interest of the company and to the best of his /her skill carry out his /her duties and
attend punctually at the place or places where he/she is employed.
Employees should hold themselves in readiness to perform any duties required of them
to the best of their ability.
TERMS OF EMPLOYMENT
The terms of employment of any employee of the company are as per the details
contained in their letter of appointment. The company reserves the right to amend, alter
or change any of the terms and conditions of employment.
GENERAL RULES AND REGULATIONS

COMMUNICATION
The company firmly believes that effective communications at all levels significantly aids
efficient operation. Should any associate have any queries/questions regarding his/her
work, the associate is encouraged to discuss them with his/her supervisor/manager. From
time to time, the departmental head or the Country Head may call special communication
meetings to ensure that all staff is kept informed of significant issues. Other
announcements will either be circulated or posted on the Company.

58

SEXUAL HARASSMENT
The company has a long-standing commitment to maintaining a work environment free of
all forms of discrimination, including sexual harassment, for all employees. All
employees are encouraged to cooperate and participate in helping the company maintain
an environment that is conducive to individual productivity, growth and development.
ATTIRE POLICY
The company is committed to upholding its professional image, specifically as relates to
dress and appearance of employees. It is expected that all employees will be dressed in an
acceptably professional manner while on the job. All employees are required to wear
standard business attire or, if required working clothes and / or uniforms as issued by the
company, from Monday through Thursday, during working hours. Casual clothes like T-
shirts, jeans, etc., are not allowed in the office during normal working hours except
Fridays.

TRAVEL RULES
Travel and hotel stays are governed by the guidelines contained in the travel policy/guide,
issued by the admin department. Any employee seeking clarifications on any of these
guidelines should contact the HR Manager.
EMPLOYEE PERSONNEL FILES
The company maintains personnel files for employees who contain information required
for business and legal purposes.
5.9. FINANCE DEPARTMENT
Department Structure

59


(Chart-
19)
The finance manager has to report to the AGM and regional finance manager. The
finance department has the power to take any financial decisions like allocation of
budgets, approval of budgets etc.
The finance department also has the following functions:
Follow up of the collections.
Preparation of the negative financing reports (distributors AR-closing stock)
Claims handling and distributors Reconciliation.
Getting the report from the S&D on the sale proceeds.
During the monthly closing the finance department has to ensure the AR reconciliation and
COL reconciliation. The scope of financial analysis however depends on its purpose from
an investor point of view, predicting the future is what financial statement analysis is useful
both as a way to anticipate future conditions.


Area
Finance
Manager
Manager-
Finance
Executive
Finance

60




CHAPTER 6
SWOT ANALYSIS









61




1. PepsiCo
. PepsiCo Inc. is an American multinational food and beverage corporation headquartered
in Purchase, New York, United States, with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and other products. It is 66.41billion
Dollar Company with 274,000 employees. The company's soft drinks include Pepsi,
Mountain Dew and Slice. Cola is not the company's only beverage; PepsiCo sells
Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also
sells Dole juices and Lipton ready-to-drink tea. PepsiCo's success is the result of superior
products, high standards of performance and distinctive competitive strategies.

2. Nestle
It is 92.16 billion company with 333,000 employee. Nestle does not give that tough a
competition to Coca-Cola as it mainly deals with milk products, Baby foods and
Chocolates. But the iced tea that is Nestea which has been introduced into the market
by Nestle provides a considerable amount of competition to the products of the
Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst
quencher and it is healthier when compared to fizz drinks. The flavoured milk
products also have become substitutes to the products of the company due to growing
health awareness among people.

3. Dabur
It is 1 billion dollar company with 6,154 employees. Dabur in India, is one of the
most trusted brands as it has been operating ever since times and people have laid all
their trust in the Company and the products of the Company. Apart from food
products, Dabur has introduced into the market Real Juice which is packaged fresh

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fruit juice. These products give a strong competition to Maaza and the latest product
Minute Maid Pulpy Orange.




STRENGTHS
DISTRIBUTION NETWORK
The Company has a strong and reliable distribution network. The network is
formed on the basis of the time of consumption and the amount of sales yielded by
a particular customer in one transaction. It has a distribution network consisting of
a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The
distribution fleet includes different modes of distribution, from 10-tonne trucks to
open-bay three wheelers that can navigate through narrow alleyways of Indian
cities and trademarked tricycles and pushcarts.

STRONG BRANDS
The products produced and marketed by the Company have a strong brand image. People
all around the world recognize the brands marketed by the Company. Strong brand names
like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-

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Cola Company as a whole. The red and white Coca-Cola is one of the very few things
that are recognized by people all over the world. Coca-Cola has been named the world's
top brand for a fourth consecutive year in a survey by consultancy Inter brand. It was
estimated that the Coca-Cola brand was worth$70.45billion.


LOW COST OF OPERATION
The production, marketing and distribution systems are very efficient due to forward
planning and maintenance of consistency of operations which minimizes wastage of both
time and resources leads to lowering of costs.
Improved quality control.
Latest technology.
Heavy investment in both infrastructure and sales promotion campaigns.
Modified and attractive packaging.
Strong advertising network.
WEAKNESSES
LOW EXPORT LEVEL
The brand produced by the company are brands produced worldwide thereby making the
export levels very low. In India, there exists a major controversy concerning pesticides
and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre
for Science and Environment (CSE), a non-governmental organization in New Delhi, said
aerated waters produced by soft drinks manufacturers in India, including multinational
giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, Malathion and
chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune
system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.






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SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO
INVEST AND ACHIEVE ECONOMIES OF SCALE
The Companys operations are carried out on a small scale and due to Government
restrictions and red-tapism, the Company finds it very difficult to invest in technological
advancements and achieve economies of scale.
Gaps in distribution system during peak season
Same old distributers, co loosing grip from many such mkts.
Fear of retrenchment among the workers.
Customer satisfaction level goes down during peak season.
OPPORTUNITIES
LARGE DOMESTIC MARKETS
The domestic market for the products of the Company is very high as compared to any
other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft
drinks market; this includes a 42 per cent share of the cola market. Other products
account for 16 per cent market share, chiefly led by Limca. The company appointed
50,000 new outlets in the first two months of this year, as part of its plans to cover one
lakh outlets for the coming summer season and this also covered 3,500 new villages. In
Bangalore, Coca-Cola amounts for 74% of the beverage market.

EXPORT POTENTIAL
The Company can come up with new products which are not manufactured abroad, like
Maaza etc and export them to foreign nations. It can come up with strategies to eliminate
apprehension from the minds of the people towards the Coke products produced in India
so that there will be a considerable amount of exports and it is yet another opportunity to
broaden future prospects and cater to the global markets rather than just domestic market.

HIGHER INCOME AMONG PEOPLE
Development of India as a whole has lead to an increase in the per capita income thereby
causing an increase in disposable income. Unlike olden times, people now have the power
of buying goods of their choice without having to worry much about the flow of their

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income. The beverage industry can take advantage of such a situation and enhance their
sales.
Highly potential and huge market.
Highly potential untapped rural market.
Distribution gaps and can be rectified by appointing new dist and more effective
coverage of outlets.

THREATS
IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years
and a majority of the people are educated, the export levels have gone high. People
understand trade to a large extent and the demand for foreign goods has increased over
the years. If consumers shift onto imported beverages rather than have beverages
manufactured within the country, it could pose a threat to the Indian beverage industry as
a whole in turn affecting the sales of the Company.

TAX AND REGULATORY SECTOR
The tax system in India is accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is issued, the production
capacity is mentioned on the license and every time the production capacity needs to be
increased, the license poses a problem. Renewing or updating a license every now and
then is difficult. Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND
The rural market may be alluring but it is not without its problems: Low per capita
disposable incomes that is half the urban disposable income; large number of daily wage
earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked
to harvests and festivals and special occasions; poor roads; power problems; and
inaccessibility to conventional advertising media. All these problems might lead to a
slowdown in the demand for the companys products.
Stiff competition.
Illegal distribution done by some unauthorized fat dealers.

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Changing of consumer preference.














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CHAPTER 7
FINDING, SUGGETION&
CONCLUSION






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FINDING

1. The organization has good working environment provided by the management.
2. Staff and workers were fully involved in their work during shift hours.
3. Canteen facility is good with fresh and hygiene food.
4. Most of the people have positive attitude towards the organization.
5. Management is very much concerned for the workers welfare.
6. HCCBPL was maintaining good relation between employee and employer.
7. Different welfare programs are conducted in different departments.
8. The employer- employee relations in this HCCBPL is very good.
9. They maintain good safety measures to their employees as well as for the workers
in the organization under the welfare programs.
10. The HCCBPL provides various non-statutory welfare schemes also such as
medical facilities, insurance and regular medical check-up.
CONCLUSION AND SUGGESTION
It was a very exciting Organizational Study at Hindustan Coca-Cola Beverages Private
Limited, Bidadi, Bangalore. We have seen how the management functions are practiced.
It was a great experience to go there and get a practical touch with the theory and
concepts what we have studied in books.
We can conclude that Coca-Cola has a good image attached to it and hence it should
maintain its image, because todays scenario people are very much conscious of their
health and look for value of their money.Quality test of bottle,water coke was done in
labroratory. Hence with such a great brand name established for them is a real advantage
for them and with this can reach to new heights.




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BIBLIOGRAPHY
Books:
Organizational Behaviour-k Aswathappa. Organizational Culture
Publisher is Himalaya Publishing House. 9
th
Edition. Page N0-529-596. 649-666.

Business Environment-Francis cherunilam. Part-1 an Overview of Business
Environment. Publisher is Himalaya Publishing House. Eighteenth Revised
Edition:2008..Page no-1-137

Production and Operations Management- SN charry.
Chapter-11.New Quality Concepts and Initiatives, Total Quality Management.
Publisher is Tata McGRAW HILL. Third Edition.Page no-11.13
Marketing Management-Dr.C.B Gupta & Dr. N. Rajan Nair
Marketing Mix Publishers is Sultan Chand & sons
Edition-2004

Websites:

http://news.bbc.co.uk
http://www.coca-cola.com
http://www.google.com
www.coca-colaindia.com
www.superbrand.com
www.wikipedia.org





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