HINDUSTAN COCA-COLA

BEVERAGES PRIVATE LIMITED

AN INTERNSHIP REPORT
ANURADHA NAYAK
SSN: 888-93-2972

IN PARTIAL FULFILMENT OF THE MASTERS PROGRAM

IN BUSINESS ADMINISTRATION,
OHIO UNIVERSITY, ATHENS, USA

OHIO UNIVERSITY CHRIST COLLEGE ACADEMY FOR MANAGEMENT

EDUCATION

CHRIST COLLEGE CAMPUS

HOSUR ROAD, BANGALORE-29

APRIL 2007

_______________________________________________
ACKNOWLEDGEMENT

I would like to thank my Mr. U Narendra Kini, General Manager, Coca-Cola India, without whom an internship

with, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would not have been possible. I am grateful to

him for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I

express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an
opportunity to work with them and make the best out of my internship. I thank my trainers, Miss Poornima and Miss

Neha Kashyap for having trained me and constantly guided and supported me throughout the training period. My

heartfelt gratitude also goes out to the staff and employees at HCCBPL for having co-operated with me and guided

me throughout the one and a half months of my internship period. I thank my school, Ohio University Christ College

Academy of Management Studies for having given me this opportunity to put to practice, the theoretical knowledge

that I imparted from the program. I thank the internship co-coordinators, Dr. Amalendu Jyotishi and Mr. Girish M

for having guided and supported me through the course of the internship. I take this opportunity to thank my parents

and friends who have been with me and offered emotional strength and moral support.

EXECUTIVE SUMMARY

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 world’s 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. 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 Jacob’s 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. 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. 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. 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. The main objective of this study lies

in understanding the organization and studying and understanding the consumers’ perception and opinion about the

latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling

involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the

required marketing push and to recognize the3

prospective consumers and their opinion in order to develop and market the product in a better way in the near

future. The methodology used in studying and understanding the perceived views of consumers towards the product

was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs and suggestions have been

offered there from.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION…………………………………………………
…71.1: A brief insight- The FMCG Industry in India…………………………
…………..8
1.2: A brief insight- The Beverage Industry in India……………………
………….10
Figure 1: Beverage Industry in India…………………………
……….10
CHAPTER 2: THE COCA-COLA COMPANY…………………………………
…13
2.1: History…………………………………………………………………………
……………..13
2.2: History of Bottling…………………………………………………………
……………..15
2.3: Manifesto for Growth………………………………………………………
……………18
2.3.1: Values…………………………………………………………………………
………………18
2.3.2: Mission………………………………………………………………………
………………..19

Figure 6: Organization Structure of the Sales

Department…….27
3.5: Manufacturing Unit of HCCBPL…………………………………………
……………28
Figure 7: Chain followed from Manufacture to
Distribution…….28
3.6: Manufacturing process at HCCBPL……………………………………
…………..29
Figure 8: Manufacturing process………………………………
…………29
3.7: Business Plan model at HCCBPL………………………………………
…………….30
Figure 9: Business Plan model at HCCBPL…………………
…………30
3.8: Distribution Network………………………………………………………
…………….31
3.8.1: Distribution Routes………………………………………………
…………….31
3.8.2: Distribution System………………………………………………
……………32
3.8.3: Departments involved in the Distribution process………
………….33
3.9: SWOT Analysis of HCCBPL………………………………………………
……………33
3.9.1: Strengths……………………………………………………………
…………….33
3.9.2: Weaknesses…………………………………………………………
……………34
3.9.3: Opportunities………………………………………………………
…………….35
6

3.9.4: Threats………………………………………………………………
……………..36
3.10: Competitors to HCCBPL…………………………………………………
……………37
CHAPTER 4: PRODUCTS…………………………………………………………
38
5.1: Packaging details…………………………………………………………
………………40
CHAPTER 5: PROJECT: PERCEPTION OF CONSUMERS TOWARDS
MINUTE MAID PULPY ORANGE……………………………………………
…..41
5.1: Objective of the Study……………………………………………………
…………….42
5.2: About the Product…………………………………………………………
……………..42
5.3: Methodology…………………………………………………………………
…………….43
5.4: Procedure……………………………………………………………………
………………44
5.5: Findings………………………………………………………………………
………………45
5.5.1: Graph 1: Total number of Consumers based on Age
Group……45
7

5.5.2: Graph 2: Total number of Consumers based on Gender…

………465.5.3: Graph 3: General reaction of Consumers about MMPO…
………..46
5.5.4: Graph 4: Reaction analyzed on basis of Age Group………
……….48
5.5.5: Graph 5: Reaction analyzed on basis of gender…………
………….50
5.6: Additional Details…………………………………………………………
………………51
5.7: Suggestions…………………………………………………………………
………………53
CHAPTER 6: CONCLUSION…………………………………………………
…...54
APPENDIX…………………………………………………………………………..
55
DATA SOURCES……………………………………………………………………
58
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 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.

18

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.

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

19

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 relationships

FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA
29
Region Vice
President
AGM/AOD
Unit 1
AGM/AOD
Unit 2
AGM/AOD
Unit 3
AGM/AOD

Unit4

Region Finance

Region Human

Resource
Region Customer
Service
Region External
Affairs

Region Cold Drink

Region Legal

Region BSG

Region
Director/Manager
Region Capability
Management
Region Channel
FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA
3.4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
IN
HCCBPL:
30
AGM/AOD
Plant
Manager
Route to
Market
Human
Resource
Manager
Finance
Manager
General
Sales
Manager

Area
Sales
Manager

Channel
Manager
Area

Capabilit
y
Manager

Sales
Executive
Sales
Trainers
Market
Develope
r
Distributor
s
And
Salesmen
Marketin
g
Key
Accounts

FIGURE 6: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

3.5: 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.

31

20
Coca Cola Report