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INTRODUCTION

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

Distribution is the spine of any FMCG company. The main function of a retailer
is to bridge the gap between the supplier and the customer. The central focus of
distribution is to increase the efficiency of time, place, and delivery utility. For any
FMCG product it is essential to have a good distribution network which should be better
than that of its competitors.

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

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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 aim 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.

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A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG) are products that have a quick turnover and relatively low cost. Consumers
generally put less thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many
players had been facing severe problems on account of increased competition from
small and regional players and from slow growth across its various product categories.
As a result, most of the companies were forced to revamp their product, marketing,
distribution and customer service strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian
customer witnessed an increasing exposure to new domestic and foreign products
through different media, such as television and the Internet. Apart from this, social
changes such as increase in the number of nuclear families and the growing number of
working couples resulting in increased spending power also contributed to the increase
in the Indian consumers' personal consumption. The realization of the customer's
growing awareness and the need to meet changing requirements and preferences on
account of changing lifestyles required the FMCG producing companies to formulate
customer-centric strategies. These changes had a positive impact, leading to the rapid
growth in the FMCG industry. Increased availability of retail space, rapid urbanization,
and qualified manpower also boosted the growth of the organized retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats
of the FMCG industry by focusing on rural markets, direct distribution, creating new
product, distribution and service formats. The FMCG sector also received a boost by
government led initiatives in the 2003 budget such as the setting up of excise free zones
in various parts of the country that witnessed firms moving away from outsourcing to
manufacturing by investing in the zones.

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Though the absolute profit made on FMCG products is relatively small, they generally
sell in large numbers and so the cumulative profit on such products can be large. Unlike
some industries, such as automobiles, computers, and airlines, FMCG does not suffer
from mass layoffs every time the economy starts to dip. A person may put off buying a
car but he will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of
global market dip, because they generally satisfy rather fundamental, as opposed to
luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth
largest sector in the Indian Economy and is worth Rs.93000 crores. The main
contributor, making up 32% of the sector, is the South Indian region. It is predicted that
in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being
one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source:
HCCBPL, Monthly Circular, March)

The FMCG sector consists of the following categories:

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,
Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products)
and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps,
Colgate, Marico, Dabur and Procter & Gamble.

Household Care- Fabric wash (Laundry soaps and synthetic detergents),


Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners,
Insecticides and Mosquito repellants, Metal polish and Furniture polish; the
major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

Branded and Packaged foods and beverages- Health beverages, Soft drinks,
Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods,
Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables,
Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar,

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Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola,
Cadbury, Pepsi and Dabur

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

In India, beverages form an important part of the lives of people. It is an industry, in


which the players constantly innovate, in order to come up with better products to gain
more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages

Natural and Synthetic beverages

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In-home consumption and out of home on premises consumption.

Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and
that beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it
is important to address this issue so as to encourage regular consumption as well as and
to make the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

The quality and the consistency of beverages needs to be enhanced so that


consumers are satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe
feeling that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-being
or prestige relevant to the category.
Communication should be relevant and trendy so that consumers are able to find
an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity,
for brand and sales growth in turn to add up to the overall growth of the food and
beverage industry in the economy.

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THE COCA-COLA COMPANY
HISTORY

Coca-Cola (also known as Coke, a name that was trademarked by The Coca-
Cola Company after it was discovered many people called it by that particular name) is
a very popular cola (a carbonated soft drink) sold in stores, restaurants and vending
machines in more than 200 countries. It is produced by the Coca-Cola Company
(NYSE: KO), which is also often referred to as simply Coca-Cola or Coke. Coke is one
of the worlds most recognizable and widely sold commercial brands; its major rival is
Pepsi.

Coke was originally intended as a patent medicine when it was invented in the
late 19th century, Coca-Cola was bought out by businessman Asa Griggs Candler,
whose marketing tactics led Coke to its dominance of the world soft drink market
throughout the 20th century. Although faced with critiques of its health effects and
various allegations of wrongdoing by the company, Coca-Cola has remained a popular
soft drink to the present day It was initially sold as a patent medicine for five cents a
glass at soda fountains, which were popular in the United States at the time thanks to a
belief that carbonated water was good for the health. The first sales were made at
Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months
only nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on
March 12, 1894, and cans of Coke first appeared in 1955. By 1888, three versions of
Coca-Cola - sold by three separate businesses were on the market.

On February 7, 2005, the Coca-Cola Company announced that in the second


quarter of 2005 they planned a launch of a Diet Coke product sweetened with the
artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi
One. The company actually produces concentrate for Coca-Cola, which is then sold to
various Coca-Cola bottlers throughout the world. The bottlers, who hold territorially-
exclusive contracts with the company, produce finished product in cans and bottles from
the concentrate in combination with filtered water and sweeteners. The bottlers then
sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores and

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vending machines. Such bottlers include Coca-Cola Enterprises, which is the single
largest Coca-Cola bottler in North America and Europe. The Coca-Cola Company also
sells concentrate for fountain sales to major restaurants and food service distributors.

The Coca-Cola Company has on occasion introduced other cola drinks under the
Coke brand name. The most famous of these is Diet Coke, which has become a major
diet cola but others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-
Cola Company owns and markets other soft drinks that do not carry the Coca-Cola
branding, such as Sprite, Fanta, and others. The actual production and distribution of
Coca-Cola follows a franchising model. The Coca-Cola Company only produces a
syrup concentrate, which it sells to various bottlers throughout the world who hold
Coca-Cola franchises for one or more geographical areas. The bottlers produce the final
drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill
it into cans and bottles, which the bottlers then sell and distribute to retail stores,
vending machines, restaurants and food service distributors. The bottlers are normally
also responsible for all advertisement and other sales initiatives within their areas.

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some
localities. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink
Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. The
products of the company reach consumers and customers around the world through a
vast distribution network made up of local bottling companies. These bottlers are
located around the world, and most are independent businesses. Using syrups,
concentrates and beverage bases produced by the Coca-Cola Company, their global
bottling system packages and markets products, then distributes them to more than 14
million retail outlets worldwide. The Coca-Cola Company is committed to assisting its
bottlers with the functions of an efficient bottling operation and initiating quality
systems to ensure the highest quality products for their consumers.

The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark
Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to
consumers everywhere, was granted registration as a trademark by the U.S. Patent and

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Trademark Office in 1977; an honor awarded very few packages. The most valuable
assets happen to be the trademarks they possess. For Coca-Cola, the most drunk soft
drink on earth is one of the world s best-known and most admired trademarks,
recognized by more than 90 percent of the world s population. Interestingly, the world
that is touched by the cherished drinks for every moment, the Coca-Cola trademarks
happen not only to be their most valuable assets but of the entire earth. The business
system of the Company in India directly employs approximately 6,000 people, and
indirectly creates employment for many more in related industries through our vast
procurement, supply and distribution system. On the distribution front, 10-tonne trucks,
open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, ensure
availability of our brands in every nook and corner of the country. The term soft drink
originally applied to carbonated drinks made from concentrates, although it now
commonly refers to almost any cold drink that does not contain alcohol.

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in
Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his
backyard. He first distributed the product by carrying it in a jug down the street to Jacobs
Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water
was teamed with the new syrup, whether by accident or otherwise, producing a drink that was
proclaimed delicious and refreshing, a theme that continues to echo today wherever Coca-
Cola is enjoyed.

Dr. Pembertons partner and book-keeper, Frank M. Robinson, suggested the name and penned
Coca-Cola in the unique flowing script that is famous worldwide even today. He suggested
that the two Cs would look well in advertising. The first newspaper ad for Coca-Cola soon
appeared in The Atlanta Journal, inviting thirsty citizens to try the new and popular soda
fountain drink. Hand-painted oil cloth signs reading Coca-Cola appeared on store awnings,
with the suggestions Drink added to inform passersby that the new beverage was for soda
fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a

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distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed
$50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage
he created. He gradually sold portions of his business to various partners and, just prior to his
death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from
Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete
ownership and control of the Coca-Cola business. Within four years, his merchandising flair had
helped expand consumption of Coca-Cola to every state and territory after which he liquidated
his pharmaceutical business and focused his full attention on the soft drink. With his brother,
John S. Candler, John Pembertons former partner Frank Robinson and two other associates, Mr.
Candler formed a Georgia corporation named the Coca-Cola Company. The trademark Coca-
Cola, used in the marketplace since 1886, was registered in the United States Patent Office on
January 31, 1893.

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

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

HISTORY OF BOTTLING

Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US


based Coca-Cola Company. The company-owned Bottling arm of the Indian
Operations, Hindustan Coca-Cola Beverages Private Limited is responsible for the
manufacture, sale and distribution of beverages across the country. Coca-Cola India is

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among the countrys top international investors, having invested more than US$ 1
billion in India within a decade of its presence and further pledged another US$ 100
million in 2003 for its operations. It is the worlds largest selling soft drink since 1886.
The Coca-Cola Company returned to India in 1993 after a gap of 16 years giving new
Thums up to the Indian Soft Drink Market and took over the ownership of the nation's
top soft-drink brands and bottling network. The vast Indian operations comprises 25
wholly company owned bottling operations and another 24 franchisee owned bottling
operations and a network of 21 contract packers also manufactures a range of products
for the Company.
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.

YEAR WISE HISTORY OF BOTTLING:

Year 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.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a 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 for a sum of one
dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights to local

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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.
Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle 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. The Contour Bottle became one of the few packages ever granted
trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the
world.

In the 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 fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. 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.

In the 1920s and 1930s: International expansion

Led by 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 and South Africa. By the time World War
II began, Coca-Cola was being bottled in 44 countries.
In the 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.

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In the 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.

In the 1960s: Introduction of new brands

Sprite, Fanta, 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 Fruitopia in the 1990s. Today scores of other brands are offered to meet
consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-Cola


Company 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.

In the 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. As the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as consumers seek brands that honor local identity and
the distinctiveness of local markets. As was true a century ago, strong locally based

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relationships between Coca-Cola bottlers, customers and communities are the foundation on
which the entire business grows.

COMPETITOR ANALYSIS

Indian soft drinks market is predominantly controlled by two major


multinationals namely Coca- Cola and Pepsi, which have carefully stifled out the local
competition here in India. Penetrating tough Indian psychology and making their
products feel accepted was the toughest challenge in front of them. A brief overview of
the soft drinks giant biggest competitor will help in gaining a better insight of the soft
drinks market in totality.

CURRENT MARKET POSITION

There has been much controversy and debate on the market share standings
between the two companies in the Indian subcontinent and a substantial and a
consolidated figure has been unavailable for reference. This is mainly because both
companies had approached different market research companies for making a study
about the market share standings. Pepsi Co had approached IMRB while Coca- Cola
had entrusted this responsibility on ORG. According to the survey done by IMRB
Pepsis market share was found to have increased from 47% to 49% while according to
the study conducted by ORG Coca- Colas market share was claimed to be 59%.

MANIFESTO FOR GROWTH


VALUES:
Coca-Cola is guided by shared values that both the employees as individuals and the Company
will live by; the values being:

LEADERSHIP: The courage to shape a better future

PASSION: Committed in heart and mind

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INTEGRITY: Be real

ACCOUNTABILITY: If it is to be, its up to me

COLLABORATION: Leverage collective genius

INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well


MISSION

To Refresh the World... In body, mind, and spirit

To Inspire Moments of Optimism... Through our brands and our actions

To Create Value and Make a Difference... Everywhere we engage.

VISION FOR SUSTAINABLE GROWTH

PROFIT: Maximizing return to shareowners while being mindful of our overall


responsibilities.

PEOPLE: Being a great place to work where people are inspired to be the best they can
be.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples Desires and needs.

PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

PLANET: Being a responsible global citizen that makes a difference.

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FIGURE 2: VISION FOR SUSTAINABLE GROWTH

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED


(HCCBPL)
ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its
formula to the Government and reduce its equity stake as required under the Foreign Regulation
Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-
entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra.
An agreement with the Parle Group gave the Company instant ownership of the top soft drink
brands of the nation. With access to 53 of Parles plants and a well set bottling network, an
excellent base for rapid introduction of the Companys International brands was formed. The
Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza,
which were floated by Parle, as these products had achieved a strong consumer base and formed
a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these
products became a part of range of products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its 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 favor of resident
shareholders by June 2002.

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Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing
locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling
Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture
process of a range of products for the company. It also has a supporting distribution network
consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services
required to cater to the Indian market are made locally, with help of technology and skills within
the Company. The complexity of the Indian market is reflected in the distribution fleet which
includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that
can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to
aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37%
growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the
per capita consumption of cold drinks doubled due to the launch of the new packaging of 200
ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new
market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have a
long standing belief that everyone who touches their business should benefit, thereby inducing
them to uphold these values, enabling the Company to achieve success, recognition and loyalty
worldwide.

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FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

MANIFESTO FOR GROWTH


VALUES

The values that the employees in the Company are expected to keep up to and work by regularly
are as follows:

LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy
and zeal, to deliver outstanding results.

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INNOVATION: To continuously strive for progress and reach the next level of
excellence in everything we do.

PASSION: To be deeply committed and display drive and energy in the quest to deliver
outstanding performance.

TEAMWORK: To unite for greater strength and work collectively as a group towards
the achievement of common goals.

OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the
lowest appropriate level.

ACCOUNTABILITY: To be individually and transparently accountable to our


colleagues for delivering agreed targets and goals.

VISION FOR SUSTAINABLE GROWTH

To provide exceptional strategic leadership in the Coca-Cola India System-resulting in


consumer and customer preference and loyalty, through Coca-Colas commitment to them, and
in a highly profitable Coca-Cola Corporate branded beverages system.

MISSION

To create consumer products, services and communications, customer service and bottling
system strategies, processes and tools in order to create competitive advantage and deliver
superior value to;

Consumers as a superior beverage experience

Consumers as an opportunity to grow profits through the use of finished drinks

Bottlers as an opportunity to grow profits in volumes

19
Bottlers as a trademark enhancement and positive economic value added

Suppliers as an opportunity to make reasonable profits when creating real value-added


in an environment of system-wide team work, flexible business system and continuous
improvement

Indian society in the form of a contribution to economic and social development.

QUALITY POLICY

To ensure customer delight, we commit to quality in our thoughts, deeds and actions by
continually improving our processesEvery time.

20
ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
IN HCCBPL:

AGM/AOD

Human General
Plant Route to Resource Finance Sales
Manager Market Manager Manager Manager

Area
Area Sales Channel Capability
Manager Manager Manager

Sales Sales
Marketing
Executive Trainers

Market Key
Developer Accounts

Distributors
And
Salesmen

FIGURE 6: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

21
MANUFACTURING UNIT OF HCCBPL

The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and one of the
bottling operations owned by the company. The Plant has one PET line which has the capacity
of yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines which yields 600
bottles per minute each and one Juice line which yield 155 bottles per minute. It caters to the
whole of South Karnataka through a network of more than 80 distributors. There are three
depots in Bangalore; North Depot, East Depot and Mega Depot.

Manufacturing Plant,
Bidadi

Sales and
Distribution
Operations

Distributors Outlets

Outlets

FIGURE 7: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

22
The manufacturing of the products of Coca-Cola involves the following steps:

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

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

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

On the other hand, simultaneously, the returnable glass bottles are depalletized,
inspected and washed for the purpose of filling in the final product in it. This step does
not take place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of
PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

23
BUSINESS PLAN MODEL AT HCCBPL
Coca-Cola India Manufactures
division, Concentrate, Beverage
Gurgaon base and Syrup

Regional Bottlers Manufactures finished


COBO/FOBO Bottles/Cans/Fountain
Syrup

Customers

Consumers

BUSINESS PLAN MODEL

DISTRIBUTION NETWORK

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

A typical distribution chain at HCCBPL would be:


Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --- Retail
Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily

24
basis. A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.

DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:

Key Accounts: The customers in this category collectively contribute a large chunk
of the total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to
these customers on credit, payments being made by them after a certain period of time
i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

Future Consumption: This route consists of outlets of Coca-Cola products, wherein


a considerable amount of stock is kept in order to use for future consumption. The
stock does not exhaust within a day or two, instead as and when required stocks are
stacked up by them so as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.

Immediate Consumption: The outlets in this route are those which require stocks on
a daily basis. The stocks of products in these outlets are not stored for future use
instead, are exhausted on the same day and might run a little into the next day i.e. the
products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.

General: Under this route, all the outlets that come in a particular area or an area
along with its neighboring areas are catered to. The consumption period is not taken
into consideration in this particular route.

25
DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local account
management at the store level.

Indirect distribution: In indirect distribution, an organization which is not part of the


Coca-Cola system has control on one or more of the distribution elements (Sales,
delivery, merchandising and local account management)

Merchandising: Merchandising means communication with the consumer at the point


of purchase to convey product benefit, value and Quality. Sales people and delivery
personnel both have this responsibility. In certain locations special teams who go into
business locations to specifically merchandise our products.

DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments:

Distribution Department: It appoints distributors and establishes a distribution


network, processes approved sale orders and prepares invoices, arranges logistics and
ship products, co-ordinates with distributors for collections and monitors distribution
stocks and their set-up.

Finance Department: It checks credit limits and approves sales orders in compliance
with the credit policy followed by the firm, records collections from distributors,
periodically reconciles outstanding balances from distributors, obtains balance
confirmation from distributors and follows up outstanding balances.

Shipping or Warehousing Department: It dispatches goods as per approved by order,


ensures that stocks are dispatched on a FIFO basis, ensures physical control over load
out area and updates warehouse stock records in a timely manner.

26
SWOT ANALYSIS OF HCCBPL
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-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 Interbrand. It was estimated that the Coca-Cola brand was worth
$70.45billion. (http://news.bbc.co.uk/1/hi/business/4706275.stm)

LOW COST OF OPERATIONS: 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.

WEAKNESSES
LOW EXPORT LEVELS: The brands produced by the company are brands produced
world wide 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.

27
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.

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 income. The beverage industry can take
advantage of such a situation and enhance their sales.

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

28
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.

COMPETITORS TO HCCBPL

The competitors to the products of the company mainly lie in the non-alcoholic beverage
industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks
include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;
PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina
water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-
Cola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola
and the rest belongs to Pepsi.

29
Nestl: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which
has been introduced into the market by Nestle provides a considerable amount of
competition to the products of the Company. Iced tea is one of the closest substitutes to
the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The
flavored milk products also have become substitutes to the products of the company due
to growing health awareness among people.

Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever
since times and people have laid all their trust in the Company and the products of the
Company. Apart from food products, Dabur has introduced into the market Real Juice
which is packaged fresh fruit juice. These products give a strong competition to Maaza
and the latest product Minute Maid Pulpy Orange.

30
PRODUCTS
_______________________________________________

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

In the Cola Section:

In the Lemon section:

In the Orange section:

31
In the Juice section:

In the Soda Water and Bottled Mineral Water section:

In the Tonic Water section:

32
PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 ml
returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles

Diet Coke: 330 ml can and 500 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml
free PET bottles and the newly introduced 200 ml Tetra Pack

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET bottles

Schweppes Mineral Water: 750 ml PET bottles

Schweppes Tonic Water: 330 ml can

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET
bottles.

33
CONSUMER PRECEPTION

Merchants aim to increase their sales by determining what drives their customers'
purchase decisions. Consumer perception theory attempts to explain consumer behavior
by analyzing motivations for buying -- or not buying -- particular items. Three areas of
consumer perception theory relate to consumer perception theory: self perception, price
perception and perception of a benefit to quality of life.

Definition

Consumer perception applies the concept of sensory perception to marketing and


advertising. Just as sensory perception relates to how humans perceive and process
sensory stimuli through their five senses, consumer perception pertains to how
individuals form opinions about companies and the merchandise they offer through the
purchases they make. Merchants apply consumer perception theory to determine how
their customers perceive them. They also use consumer perception theory to develop
marketing and advertising strategies intended to retain current customers -- and attract
new ones.

Self Perception

Self perception theory attempts to explain how individuals develop an understanding of


the motivations behind their own behavior. Self perception by customers relates to
values and motivations that drive buying behavior -- which is also an important aspect
of consumer perception theory. For instance, a study by researchers at the University of
Massachusetts at Amherst addressed how self perception shaped consumers' buying
behavior. The study considered the question of whether consumers believed their
buying decisions had a real effect on issues such as environmental impact. The
researchers concluded that consumers' self perception was a driving factor in whether or

34
not they placed a priority on socially conscious purchase and consumption practices.
Consumers who viewed themselves as socially conscious tended to place more weight
on issues such as environmental impact when making buying decisions than consumers
who did not hold similar views of themselves.

Price Perception

While mass merchandisers such as Wal-Mart emphasize low prices as an inherent


virtue, upscale merchants attempt to emphasize quality and value for money to appeal to
potential customers. Researchers at the School of Business Administration at LaSalle
University and LeBow College of Business at Drexel University considered several
factors, including price perception -- whether consumers believed they were being
charged fair prices -- in determining whether online shoppers would make repeat
purchases through the same website. The researchers concluded that price perception
strongly influenced whether customers were satisfied with their purchases and whether
they would make future purchases. Two factors that shaped price perception were the
perceived quality of the merchandise or service in question and price comparisons with
merchants offering similar merchandise or services.

Benefit Perception

"It's good, and it's good for you." Many consumers are familiar with this phrase
frequently associated with food advertising. Researchers from Marquette University,
Louisiana State University and the University of Arkansas surveyed customers to
determine how nutrition claims associated with food affected their perception of that
food's nutritional value. The researchers found that consumers tend to reject general,
unsupported claims of enhanced nutrition, especially concerning high nutritional value
for foods that are traditionally viewed as unhealthy. The researchers also theorized that
consumers would demonstrate a trend toward applying more scrutiny to nutrition claims
and would demand more specific information about the foods they purchase.

OBJECTIVE OF THE STUDY

35
The main objective of this study lies in studying and understanding the consumers
perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced
into India, by the Coca-Cola Company. Perception can be defined as intuitive
recognition of a truth, aesthetic quality and the way a person sees or understands. In the
case of Minute Maid Pulpy Orange, one could define perception as the levels of
awareness and acceptance among people towards the product.

ABOUT THE PRODUCT

Minute Maid is a 62-year-old brand and entered the Coca-Cola fold in 1960. The history
of the Minute Maid brand goes as far back as 1945 when the Florida Foods
Corporation developed an orange juice powder. The company developed a process that
eliminated 80% of the water content in orange juice to form a frozen concentrates
which, when reconstituted created orange juice. The product was thereby branded
Minute Maid, a name signifying the convenience and the ease of preparation i.e. the
drink could be prepared in just about a minute. Minute Maid thus moved from a
powdered concentrate to the first ever orange juice from concentrate. Over the years,
through innovation and unmatched consumer experience provided in over 60 countries,
Minute Maid brand has clearly become one of the world's largest juice and juice drink
brands. Minute Maid Pulpy Orange in India was launched in Hyderabad on the 19 th Of
February. The product is aimed to further extend the leadership of Coca-Cola in India in
the juice drink category.

There are over a 100 products in the Minute Maid banner that include fruit drinks in
various flavors and fortified varieties. Coca-Cola is exploring its options to introduce
some of these in India in future after tweaking them to suit local tastes and conditions.
The product is made available in two packs; one being a 400 ML bottle priced at Rs. 25
and the other being a 1 LT bottle priced at Rs. 60. The exclusivity of the product lies in
the presence of real orange pulp in the drink contributing to its unique and refreshing
taste. Currently, the pulp is imported from Florida and the juice from Brazil, the largest

36
producers of Orange in the world. The product is bottled at the bottling unit of Coca-
Cola in Chittoor, Andhra Pradesh. In the long run, the company would be sourcing these
components locally by teaming up with farmers.

The product is made available in groceries, large format stores, eating and drinking
outlets, convenience stores etc. Mr. John Ustas, CEO of HCCBPL, said that Minute
Maid Pulpy Orange would be retailed across 25,000 outlets in the three Southern States
of Karnataka, Andhra Pradesh and Tamil Nadu in the months of March and April.

37
INTRODUCTION
Business research can be defined as a systematic and objective process of gathering,
recording and analyzing data that provides information to guide business decisions. It is
used either to understand market trends, to find the optimal marketing mix, to devise
effective HR policies, or to find the best investment options.

In the present fast track business environment marked by cutthroat competition, many
organizations rely on business research to gain a competitive advantage and greater
market share. A good research study helps an organization understand processes,
products, customers, markets and competition and to develop policies, strategies, and
tactics that are most likely to succeed.

ROLE OF BUSINESS RESEARCH IN DECISION-MAKING

For effective planning and implementation of business decisions, accurate


information about the internal and external business environments is of primary
importance. The key objective of business research is to provide accurate, relevant, and
timely information to the top management, so that they can make effective decisions.
The business decision-making process in an organization going through the following
key interrelated stages:
Problem/opportunity Identification
Problem/opportunity prioritization and selection
Problem/opportunity resolution
Implementing the selected course of action
Business Research helps the management in each of the stages by providing useful and
timely information
RESEARCH DESIGN

38
A research design is the arrangement of conditioned for collection and analysis of data
in a manner that aims to combine relevance to the research purpose which economy in
procedure. Main characteristics of research design can be summarized in two words-

Anticipation
Specification

My research design is COSUMER PERCEPTION

TYPE OF RESEARCH:

The basic types of research are as follows :


1. Descriptive research:
The major purpose of this research is description of the state of affairs as it exist at
present.
2. Analytical Research:
In this research, the researcher has to use facts or information already available these to
make, and analyze these to make a critical evaluation of the material.
3. Applied research:
It aims and finding a solution for an immediate problem facing a society or an
industry/business organization.
4. Fundamental research:
It mainly concerned with generalization & with the formulation of a theory
5. Quantitative Research:
It is based on the measurement of quantity or amount. It is applicable to phenomena that
can be expressed in terms of quantity.
6. Qualitative Research:
It is concerned with the qualitative phenomenon, i.e., phenomena relating to or
involving or king.
7. Conceptual Research:

39
It is related to some abstract ideas or theory.
8. Empirical Research:
It is data- based research, coming with a conclusions which are Capable of being
verified by the observation and experiment.
9. Diagnostic Research:
Such a research fallow case study method or in depth approaches to reach the basic
casual relation.
10. Exploratory Research:
The objective of this research is the development of hypothesis rather than their testing.

Source of Information
In our research we have made use of both primary and secondary data.

PRIMARY DATA:
Schedule
Personal interview
Telephonic interaction
e-mail

SECONDARY DATA:
Articles published in different magazines.
Article published in internet.
Internet.

Statistical Tools:

Representation of statistical data by diagram, graphs, charts or pictures is more

effective than tabular representation being easily intelligible to a layman, indeed

diagrams is most essential whenever it is required to convey any statistical

information to the general public.

40
Sample Size : 100

Type of Sampling : Random Sampling.

The more important types of diagram which are use in statistical work

are:-

1. Bar Diagram :

Mode of diagrammatic representation of data is the bar diagram. In this

method bar of equal width are taken for the different items of the series. The

length of the bar represents value of the variables concerned.

2. Pie Chart :

It is a circle whose area is divided proportionately among the different

components by straight lines drawn from the center to the circumference of the

circle. When statistical data are given for a number of categories and we are

interested in the comparison of various categories or between a part of the

whole, such a diagram is very helpful in effectively displaying the data.

41
STEPS IN THE RESEARCH PROCESS

Identifying & Defining Problem/ Opportunity

Planning the Research Design

Selecting a Research Method

Selecting the Sampling Procedure

Data Collection

Evaluating the Data

42
Preparing and presenting the Research Report

SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues. SWOT stands for
strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal
factors. Opportunities and threats are external factors

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Strengths-

43
Believe on the customer satisfaction.
Pepsi has a broader product line and outstanding reputation.
Record revenues and increasing market share
Number one maker of snacks, such as corn chips and potato chips
Great brands, strong distribution, innovative capabilities
popular with younger people, wide array of brands
has a big share , popular, well know by costumers, hier celebrities for promotion
company has good market share in GURGAON.
Company has a Brand Equity among Consumers.
Weaknesses-

No provision for regular replacement of damage of bottles.


Distribution is not proper so we can say not justified .
not as popular with older crowd, not associated with key restaurants (i.e. Pepsi /
McDonalds', while Pepsi / Pizza Hut)

Opportunities-

water related products, non-soft drinks, energy drinks


Increase the coverage areas.
Increase market share by improving service
Increase the target consumer every year.
Company can go for more Monopoly counters .

Threats-

Disributors are reducing in GURGAON city.


constant competition with coke. Olympic branding from coke.
other drink companies are increasing competition.
Decline in market reputation due to ineffectiveness & declaring service.
Aggressive marketing strategies of Coke.

44
PROCEDURE

The students appointed as summer trainees by the organization were assigned to carry
out the process of sampling. Each trainee was allotted different outlets on different days
and a specific number of cases containing 24 bottles of 400 ml each were given to them
for the purpose. A standardized procedure was to be followed by the trainees to carry
out the work, in order to achieve uniformity in the process, i.e. as follows:

Talk to the store Manager in the respective store and attain chiller space in order
to chill the bottles as it was necessitated that the drinks be served chill to the
consumers and chill the bottles for about two hours.

When the consumer entered or exited the store, the trainee had to stop the
consumer and tell the consumers few facts about the product i.e. that it was the
latest product introduced by Coca-Cola, that it was an orange drink with real
orange pulp in it and that it was to be had chilled and shaken well before use.

Then the bottles were to be shaken well, opened and given to the consumer to
taste and once they sipped the drink, the consumer would be requested to give
an oral opinion about the product.

After this, in order to make a report, the approximate age of the consumer,
gender and their opinion was to be made note of.

45
GRAPH 1

This graph depicts the total number of consumers divided on the basis of the age group they
belong to. The age of consumers included in the sampling activity ranged from 5 years to 75
years. Accordingly the age groups 5 to 15, 15 to 25, 25 to 35, 35 to 45, 45 to 55, 55 to 65 and 65
to 75 have been formulated. There is not set limit for the age of the consumers mainly because
Minute Maid Pulpy Orange is a fruit drink and it can be consumed by people across different
age groups with no restrictions being laid and consumers of all ages enter food world on a given
day, either individually and in the case of children, with their parents. The consumers who were
sampled with were between 5 years and 75 years of age. The approximate age of the consumers
was to be guessed and noted down. Around 50% of consumers fall in the 25 years to 35 years
and 35 years to 45 years age groups and the other 50% is distributed among the other age
groups.

46
GRAPH 1: TOTAL NUMBER OF CONSUMERS BASED ON AGE GROUP

GRAPH 2

47
This graph makes a distinction between the number of males and number of females
with whom sampling was conducted. The percentage is almost the same in both
categories, but the number of females i.e. 365 is a little more than the number of males
i.e. 331, due to the fact that, most of the household shopping is done by women rather
than by men.

GRAPH 2: TOTAL NUMBER OF CONSUMERS BASED ON GENDER

GRAPH 3

48
The following graph denotes the feedback of consumers irrespective of the age group
they belong to or their gender. This is an overall perception of the consumers towards
Minute Maid Pulpy Orange.

GRAPH 3: GENERAL REACTION OF CONSUMERS ABOUT MMPO

From the above graph, it can be seen that, more than half the people who tasted the product
liked the product, i.e. they gave positive feedback about the product and 15% of the consumers
did not like the product. Out of the remaining 19% of consumers, 11% people came up with
mixed reactions i.e. they had reasons both to like and dislike the product and a small chunk of
8% of the total consumers sampled with, said they did not like the drink too much, neither did
they love the drink.

GRAPH 4

49
The following graph denotes the perception of consumers on the basis of the age group they
belong to. This kind of a classification becomes necessary, because consumers of different age
groups have different tastes and moreover, the ages of consumers in the sample range from 5
years all the way to 75 years.

GRAPH 4: REACTION ANALYSED ON BASIS OF AGE GROUP

From the above graph, it is evident that, across all age groups, a major portion of consumers
liked the product. Further opinions received from different age groups could be compared and
analysed as follows:

Ranging from ages 5 to 55, it can be noticed that, in every age group, more than 50% of
the consumers have liked the product.
In the age group of 5 years to 15 years, 87% of the consumers have liked the products.
The main reason behind this is children are fond of juices and sweet substances. They

50
crave to have anything that is cold and the product when sampled, was made sure was
cold and the remaining 13% is divided between average and disliked. There were no
consumers who gave mixed reactions. This could be due to the reason that children
cannot come up with good enough reasons as to why they like or dislike a product.
They just give their opinion.

In age groups 15 years to 25 years, 25 years to 35 years and 35 years to 45 years and 45
years to 55 years, the reactions were almost the same. This age group mostly consisted
of college going students, working people and house wives. The percentage of
consumers who liked the product ranged from 60 to 70%, so it could be said that,
around 3 quarters of consumers belonging to those age groups liked the products. The
main reasons for this could be that the most consumers belonging to these age groups
are health conscious and Orange juice is considered to be one of the most nutritious and
healthy juices. Almost 96% of the house wives who were spoken to liked the product.
House wives are home managers and they make decisions when it comes to daily
consumables and they wanted to buy the products especially because they wanted their
children and the rest of their family to have it as it was safe and healthy.

Consumers belonging to age groups 55 years to 65 years and 65 years to 75 years,


almost have the same perception about the product. More than 50% of the consumers
jointly fell in Disliked, Average and Mixed reaction categories mainly because
consumers belonging to the age group of 55 to 75 years are diabetics and they do not
intake or they are not allowed to intake excessive quantities of sugar; Minute Maid
Pulpy Orange being a fruit juice and have added sugar in it was a big no to them. Some
of them were even apprehensive about the Coca-Cola brand name attached to the
product; according to them Coca-Cola makes only carbonated soft drinks.

GRAPH 5

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The following graph is a representation of the comparison and analysis of the feedback given by
the consumers based on the gender they belong to. This kind of an analysis is important due to
the fact that males and females have different tastes, likes and dislikes especially when it comes
to choice of foods and beverages.

GRAPH 5: REACTION ANALYSED ON BASIS OF GENDER

On analysis of the above graph, it can be noted that, the gender of the consumer has not made
an impact on the reaction obtained from the consumers. Males and females have shown the
same kind of reaction towards the product. About 70% of the both males and females liked the
product. This may be due to the fact that Orange juice is a universal favorite and people across
the world, across both genders love having orange juice. Around 20% of both males and
females gave an average rating to the products and the rest were confused.

ADDITIONAL DETAILS

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The reasons given by consumers for having liked the product were:

It tastes like fresh orange juice.

It is a good thirst quencher, especially in the summer season.

It is not bitter like other readymade juice products that are available in the market.

It has got real pulp in it and when one can feel the pulp and this makes the drink tastier.

It is a non-carbonated drink.

It is as sweet as natural oranges that one buys in the market.

Due to the natural orange pulp, the juice is healthier.

It is a ready-to-drink fruit juice.

The reasons given by consumers for having disliked the product were:

It is too sweet.

It is too watery i.e. the consistency is not good.

Fresh fruit juice is preferable.

Tropicana is preferred because that is not as sweet as Minute Maid Pulpy Orange.
It is too bitter.

It is not as sweet as natural orange juice.

It was a product of the Coca-Cola Company and ever since the controversy, consumers
are a little apprehensive about the products of that company.

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Preferred water to drinking juice.

It is not exactly a drink for adults; the taste is more to suit children rather than adults.

It tastes more like Rasna/Tang.

The above points under categories liked and disliked are contradictory to each other. Both
categories have few same points like the bitterness and the sweetness of the juice. This
contradiction arises due to the following reasons:

Consumers belonged to different age groups ranging from as young as 5 years all the
way to 75 years of age.

Consumers have different likes and dislikes.

Consumers have different tastes.

Level of health consciousness is different among different consumers.

FINDINGS:

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This report depicts the total number of consumers divided on the basis of the age group
they belong to. The age of consumers included in the sampling activity ranged from 5
years to 75 years. Accordingly the age groups 5 to 15, 15 to 25, 25 to 35, 35 to 45, 45 to
55, 55 to 65 and 65 to 75 have been formulated.

This report makes a distinction between the number of males and number of
females with whom sampling was conducted.

The following report denotes the feedback of consumers irrespective of the age
group they belong to or their gender. This is an overall perception of the
consumers towards Minute Maid Pulpy Orange.

From the above report, it can be seen that, more than half the people who tasted the
product liked the product, i.e. they gave positive feedback about the product and 15% of
the consumers did not like the product. Out of the remaining 19% of consumers, 11%
people came up with mixed reactions i.e. they had reasons both to like and dislike the
product and a small chunk of 8% of the total consumers sampled with, said they did not
like the drink too much, neither did they love the drink.
The following report denotes the perception of consumers on the basis of the age group
they belong to. This kind of a classification becomes necessary, because consumers of
different age groups have different tastes and moreover, the ages of consumers in the
sample range from 5 years all the way to 75 years.

Ranging from ages 5 to 55, it can be noticed that, in every age group, more than 50% of
the consumers have liked the product.
In the age group of 5 years to 15 years, 87% of the consumers have liked the products.
The main reason behind this is children are fond of juices and sweet substances.
In age groups 15 years to 25 years, 25 years to 35 years and 35 years to 45 years and 45
years to 55 years, the reactions were almost the same. This age group mostly consisted
of college going students, working people and house wives. The percentage of
consumers who liked the product ranged from 60 to 70%, so it could be said that,
around 3 quarters of consumers belonging to those age groups liked the products.

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Consumers belonging to age groups 55 years to 65 years and 65 years to 75 years,
almost have the same perception about the product. More than 50% of the consumers
jointly fell in Disliked, Average and Mixed reaction categories mainly because
consumers belonging to the age group of 55 to 75 years are diabetics and they do not
intake or they are not allowed to intake excessive quantities of sugar; Minute Maid
Pulpy Orange being a fruit juice and have added sugar in it was a big no to them. Some
of them were even apprehensive about the Coca-Cola brand name attached to the
product; according to them Coca-Cola makes only carbonated soft drinks.

The following report is a representation of the comparison and analysis of the feedback
given by the consumers based on the gender they belong to. This kind of an analysis is
important due to the fact that males and females have different tastes, likes and dislikes
especially when it comes to choice of foods and beverages.
On analysis of the above graph, it can be noted that, the gender of the consumer has not
made an impact on the reaction obtained from the consumers. Males and females have
shown the same kind of reaction towards the product. About 70% of the both males and
females liked the product. This may be due to the fact that Orange juice is a universal
favorite and people across the world, across both genders love having orange juice.
Around 20% of both males and females gave an average rating to the products and the
rest were confused.

LIMITATIONS OF STUDY

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It is well know fact that constraint and limitations are bound to be present in
any study do this also has some limitation as:-

1- The survey has been conducted only in few areas of GURGAON due to limited
time.
2- It is very difficult to make people understand the significance of conducting
survey.
3- Lack of consumers interest to answer the questions is also an important
limitation.
4- Lack of knowledge of area has affected the research.
5- the information given by the client may be false and biased.

SUGGESTIONS

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Taking the above analysis into consideration, the following points can be regarded for
further marketing of the product:

Advertisements should target the entire family, mainly because it has been
observed that irrespective of age and gender, more than 75% of the people have
liked the product and look forward to buy it again. Advertisements should
highlight the main features of the product that is the existence of pulp (which is
already made prominent in Advertisements); it should lay emphasis on the
health and nutrition value of the product and also on the fact that it is as good as
fresh fruit juice.

Due to the current prices, an eyebrow raiser for some, the product could be sold
in packs of 2 or more and there could be a price reduction.

At Modern Trade Outlets, where shoppers buy in bulk, Minute Maid Pulpy
Orange could be given away free, if the customer buys goods worth more than a
certain price line. This strategy is already being carried out at the Food World
outlets. It could be introduced even at Fab Mall, Subhiksha, Spencers Daily,
Big Bazaar etc.

New flavors can be introduced into the market as early as possible because
around 30% of the consumers were eager to know if the drink would come in
more flavors and another 10% of the consumers did not like Orange juice so
they were anticipating the probable launch of other flavors.

Smaller packs of Minute Maid Pulpy Orange like tetra packs of 200-300 ml can
be introduced as, when a customer wants a small amount of the drink just to
quench his thirst for that moment, he would not want to buy a bottle containing
400 ml or 1litre of the juice. Therefore, smaller packs of the product do come in
handy.
CONCLUSION

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The Sampling activity was a good first step into the area of Marketing and Sales. It gave
good amount of exposure mainly because after being trained, trainees were given an
opportunity to carry out the process ourselves. It helped in developing a considerable
amount of convincing skills, because, it took a lot of it to convince the store managers
to give us cooler space to cool the product for 2 hours and even more to convince the
customers into tasting the product and to get reviews from them. A good understanding
of the market was accomplished as around 700 people were spoken to and that group
consisted of a variety of customers. This even helped in the polishing of communication
skills, a must-have to survive and make it big in the present world. It even gave a good
understanding of behavior of customers when placed in different situations. It was a
good opportunity to work on the skill of patience, as a large number of customers were
to be dealt with. It helped in developing the kind of relations one needs to uphold in the
corporate world and it helped in building up the right attitude.

As all the points in the above mentioned paragraph, are the must-have skills for anyone
in the field of Marketing and Sales, the training period was a good experience and a
good stepping stone into the real business world.

As a future line of research, the Marketing and Sales Department at HCCBPL could
offer projects like:

Analysis Impact of advertisements on the Sales of a particular product

Analysis of major trends in the Indian Non-Alcoholic Beverage market

Analysis of changing trends in the market for Coca-Cola products

Formulation of Market penetration strategies

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BIBLIOGRAPHY

http://www.cybernoon.com

http://news.bbc.co.uk

http://www.thecoca-colacompany.com

http://www.coca-cola.com

http://www.ko.com

http://www.hoovers.com

http://www.google.com

http://www.wikipedia.org

Monthly circular for the month of March, Hindustan Coca-Cola Beverage


Private Limited

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QUESTIONNAIRE
Name:

Sex : Age:

Occupation:

Address:

Contact Number: +91989

Q1. What is your age group?

(a) 5-15 (b) 15-25 (c) 25-35 (d) 35-45 (e) 45-55

Q2. Which brand advertisement appeals you most?

(a) Coke (b) Pepsi (c) Others.

Q3 Do you take cold drink?

(a) Yes (b) No

Q4. If yes how frequently? (Daily)

(a) Less than 2 (b) 2 4 (c) More than 4

Q5. Which flavour do you like most?

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(a) Cola (b) Citric (c) Orange (d) Lemon (e) Others

Q6. Most effective punch line in your opinion of?

(a) Coke (b) Thumps up (c) Pepsi (d) Others.

Q7. You like the product which is promoted by the celebrity?

(a) Yes (b) No (c) Cant Say

Q8. Do you think that the pricing strategy adopted by the cola ompanies

fascinate the consumer?

(a) Yes (b) No (c) Cant Say

Q.9 What product of the company you like most?

(a) MMPO (B) MAAZA (C) SPRITE (D) OTHER

Q10 What is your opinion about Minute Maid Pulpy Orange?

(a) Liked (b) Average (c) Mix reaction (d) Dislike

Q11 Why do you like MMPO?

(a) Taste (b) Price (c) quantity (d) Quality

Q12. If you do not like MMPO then what is the reason?

(a) Too Sweet (b) Too Waterly (c) Too Bitter


(d) Not sweet as natural orange

Q13. You like the product which is promoted by the celebrity?

(a) Yes (b) No (c) Cant Say

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Q 14. Do you think that the pricing strategy adopted by the cola companies

fascinate the consumer?

(a) Yes (b) No (c) Cant Say

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