HINDUSTAN COCA-COLA

BEVERAGES PRIVATE LIMITED

PROJECT REPORT
Submitted for Partial
fulfillment for
The Award of the degree of Master in
Business
Administration
(2007-2009)
HINDUSTAN COLLEGE OF SCIENCE
TECHNOLOGY AND MANAGEMENT
FARAH,MATHURA(U.P)

SUBMITTED TO: SUBMITTED

BY:
PROF.DUSHYANT SHARMA
ATUL SINHA

1
FACULTY GUIDE ROLL. NO:-

MBA

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.

_______________________________________________

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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

3
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 the
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……………………………………………………7
1.1: 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

4
 2.3: Manifesto for
Growth……………………………………………………………………18
2.3.1:
Values…………………………………………………………………………………………18
2.3.2:
Mission………………………………………………………………………………………..19
2.3.3: Vision for Sustainable
Growth………………………………………………………..19
Figure 2: Vision for Sustainable
Growth…………………………………………20

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE

LIMITED………………………………………………………………………..……
21
3.1: About the
Company…………………………………………………………………….21
Figure 3: Location of COBO, FOBO and Contract
packers………..22
3.2: Manifesto for
Growth……………………………………………………………………23
3.2.1:
Values………………………………………………………………………………23
3.2.2: Vision for Sustainable
Growth……………………………………………..23
3.2.3:
Mission……………………………………………………………………………..24
3.2.4: Quality
Policy…………………………………………………………………….24
3.3: Organization Structure of Coca-Cola
India………………………………………25

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 Figure 4: Organization Structure of Coca-Cola
India……………….25
Figure 5: Organization Structure of Coca-Cola
India……………….26
3.4: Organization Structure of the Sales Department in
HCCBPL……………..27
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

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 3.9.1:
Strengths………………………………………………………………………….33
3.9.2:
Weaknesses………………………………………………………………………34
3.9.3:
Opportunities…………………………………………………………………….35
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

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 5.4:
Procedure………………………………………………………………………………
……44
5.5:
Findings…………………………………………………………………………………
……45
5.5.1: Graph 1: Total number of Consumers based on Age
Group……45
5.5.2: Graph 2: Total number of Consumers based on
Gender…………46
5.5.3: 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…………………………………………………………………………..5
5

DATA SOURCES……………………………………………………………………
58

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CHAPTER 1: INTRODUCTION
_______________________________________________

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. The Company’s
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 world’s premier
soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,

9
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
Company’s assets and resources whilst limiting business risks.

1.1: 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

10
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.

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

11
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, 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

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

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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

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

• Age wise segmentation i.e. beverages for kids, for adults and for
senior citizens

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 • 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.

14
CHAPTER 2: THE COCA-COLA COMPANY
_______________________________________________

2.1: HISTORY

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

15
drink that was proclaimed “delicious and refreshing”, a theme that
continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s 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 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
Pemberton’s 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 Company’s incorporation, Mr. Candler

16
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.

2.2: HISTORY OF BOTTLING

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:

17
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 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

18
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.

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.

19
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

20
markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation
on which the entire business grows.

2.3: MANIFESTO FOR GROWTH

2.3.1: 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

• INTEGRITY: Be real

• ACCOUNTABILITY: If it is to be, it’s up to me

• COLLABORATION: Leverage collective genius

• INNOVATION: Seek, imagine, create, delight

• QUALITY: What we do, we do well

2.3.2: MISSION

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

21
 • To Inspire Moments of Optimism... Through our brands and our
actions

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

2.3.3: 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.

22
FIGURE 2: VISION FOR SUSTAINABLE GROWTH

23
CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED (HCCBPL)
_______________________________________________

3.1: 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
Parle’s plants and a well set bottling network, an excellent base for rapid
introduction of the Company’s 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.

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

24
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 India’s 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.

25
 COBO
FOBO
CONTRACT PACKAGING

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

3.2: MANIFESTO FOR GROWTH

3.2.1: 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.

• 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.

26
 • 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.

3.2.2: 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-
Cola’s commitment to them, and in a highly profitable Coca-Cola Corporate
branded beverages system.
3.2.3: 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

• Bottlers as a trademark enhancement and positive economic value

added

27
 • 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.

3.2.4: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds

and actions by continually improving our processes…Every time.”

3.3: ORGANIZATION STRUCTURE OF COCA-COLA IN

INDIA

28
FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

29
 FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA
3.4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT
IN
HCCBPL:

30
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
 Manufacturing Plant,
Bidadi

Sales and
Distribution
Operations

Distributors Outlets

Outlets

FIGURE 7: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

3.6: MANUFACTURING PROCESS AT HCCBPL

32
FIGURE 8: MANUFACTURING PROCESS

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.

33
 • 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.

3.7: BUSINESS PLAN MODEL AT HCCBPL

Coca-Cola India
division, Manufactures
Gurgaon Concentrate, Beverage
base and Syrup

Regional Bottlers Manufactures finished

COBO/FOBO Bottles/Cans/Fountain
Syrup

Customers

Consumers

FIGURE 9: BUSINESS PLAN MODEL

3.8: DISTRIBUTION NETWORK

34
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 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.

3.8.1: 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.

35
 • 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.

3.8.2: 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)

36
 • 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.

3.8.3: 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.

3.9: SWOT ANALYSIS OF HCCBPL

37
3.9.1: 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.

3.9.2: WEAKNESSES

• LOW EXPORT LEVELS: The brands produced by the company are

brands produced world wide thereby making the export levels very

38
 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.

• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO

INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s
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.

3.9.3: 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.

39
 • 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.
3.9.4: THREATS

• IMPORTS: As India is developing at a fast pace, the per capita

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

• TAX AND REGULATORY SECTOR: The tax system in India is

accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is
issued, the production capacity is mentioned on the license and every
time the production capacity needs to be increased, the license poses
a problem. Renewing or updating a license every now and then is

40
 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 company’s products.

3.10: 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.

41
 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.

• Nestlé: 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.

CHAPTER 4: 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:

42
• In the Lemon section:

• In the Orange section:

• In the Juice section:

• In the Soda Water and Bottled Mineral Water section:

43
 • In the Tonic Water section:

4.1: 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

44
• 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.

45
 CHAPTER 5: PROJECT
PERCEPTION OF CONSUMERS
TOWARDS
MINUTE MAID PULPY ORANGE

5.1: OBJECTIVE OF THE STUDY

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,

46
one could define perception as the levels of awareness and acceptance
among people towards the product.

5.2: 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 19th 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 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.

47
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.

5.3: METHODOLOGY

As mentioned earlier in the report, Andhra Pradesh, Tamil Nadu and

Karnataka, were a part of the phased launch of the product in the market. 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 the 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’.

Sampling, by definition, is that part of statistical practice concerned with the

selection of individual observations intended to yield some knowledge about
a population of concern, especially for the purposes of statistical inference.
Each observation measures one or more properties of an observable entity
enumerated to distinguish objects or individuals. In the case of Minute Maid
Pulpy Orange, the properties taken into concern are, the opinion of people
regarding the product, taking into consideration their age and gender.

The process of Sampling in the city of Bangalore was conducted in the chain
of Food World outlets all over the city. A modern trade outlet like Food
World was chosen because of facts like; the number of Food World outlets is
high and the number of walk ins at each outlet was comparatively high as
compared to any other stores or any other modern trade outlets. In recent
years, consumers have preferred shopping for grocery and other
necessaries at super markets due to reasons like, location of the store,

48
shopping at leisure and convenience, spacious stores, availability of a wide
array of products, prices offered and the quality of the products. Food World
has been existent in the city for a very long time now and it is an outlet
which satisfies all the above conditions and keeping that in mind, it was
chosen.

5.4: 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.

49
5.5: FINDINGS

5.5.1: 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.

Total No. o

8%
50
GRAPH 1: TOTAL NUMBER OF CONSUMERS BASED ON AGE GROUP
5.5.2: GRAPH 2

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

No. o

women rather than by men.

GRAPH 2: TOTAL NUMBER OF CONSUMERS BASED ON GENDER

51
5.5.3: GRAPH 3

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’.

Opinion of

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.
11%
they had reasons both to like and dislike the product and a small chunk of

52
8% of the total consumers sampled with, said they did not like the drink too
much, neither did they love the drink.

5.5.4: GRAPH 4

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.

Feedb
87
90

80 76

70

GRAPH 4: REACTION ANALYSED ON BASIS OF AGE GROUP

60
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:
umers

50 53
• 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 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

54
 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.
5.5.5: GRAPH 5

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.

70

60

GRAPH 5: REACTION ANALYSED ON BASIS OF GENDER

50
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
onsumers

consumers. Males and females have shown the same kind of reaction

40
55
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.

5.6: ADDITIONAL DETAILS

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.

56
 • 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.

• 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.

57
 • Level of health consciousness is different among different consumers.

5.7: SUGGESTIONS

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, Spencer’s 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

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 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.

CHAPTER 6: CONCLUSION
_______________________________________________

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.

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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

APPENDIX

Total number of Consumers sampled and their opinion

Age
Groups Gender Opinion
Mix
M F T Liked Average Reaction Disliked
M F T M F T M F T M F T
5 to 15 26 19 45 23 16 39 2 2 4 0 0 0 1 1 2
15 to 1
25 42 28 70 35 18 53 3 2 5 4 8 2 0 0 0
25 to 19 13 1 1
35 86 108 4 56 78 4 6 8 4 6 10 6 18 12 30
35 to 18 13 1 1
45 93 96 9 65 70 5 10 6 6 6 10 6 12 10 22
45 to
55 36 54 90 21 31 52 5 4 9 5 4 9 5 15 20
55 to 1
65 18 40 58 8 15 23 0 3 3 6 12 8 4 10 14
65 to
75 30 20 50 12 8 20 4 2 6 5 4 9 9 6 15
33 36 69 22 23 45 3 2 5 4 8 4 5 10
1 5 6 0 6 6 0 7 7 32 8 0 9 4 3

Key
M Male
F Female
T Total
L Liked
A Average

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M Mixed
R Reaction
D Disliked

Table for Graph 1

Age Total No. of
Group Consumers
5 to 15 45
15 to 25 70
25 to 35 194
35 to 45 189
45 to 55 90
55 to 65 58
65 to 75 50

Table for Graph

2
Male 331
Female 365

Table for Graph 3

45
Liked 6
Average 57
Mix Reaction 80
10
Disliked 3

Table for Graph 4 (In Numbers)

Age Group Liked Average Mix Reaction Disliked
5 to 15 39 4 0 2
15 to 25 53 5 12 0
25 to 35 134 14 16 30
35 to 45 135 16 16 22
45 to 55 52 9 9 20

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 55 to 65 23 3 18 14
65 to 75 20 6 9 15

Table for Graph 4 (Rounded Up % ages used in Graph)

Age Group Liked Average Mix Reaction Disliked
5 to 15 87 9 0 4
15 to 25 76 7 17 0
25 to 35 69 7 8 16
35 to 45 72 8 8 12
45 to 55 58 10 10 22
55 to 65 40 5 31 24
65 to 75 40 12 18 30

Table for Graph 5 (In Numbers)

Gende Like Averag Mix Dislike
r d e Reaction d
Male 220 30 32 49
Femal
e 236 27 48 54

Table for Graph 5 (Rounded Up %ages)

Gende Like Averag Mix Dislike
r d e Reaction d
Male 67 9 10 14
Femal
e 65 7 13 15

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DATA SOURCES:
_______________________________________________

• 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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