Coca Cola

The effectiveness of distribution channel of coca cola co.
at Gangavathi
GUNJAHALLI HIRE NAGAPPA COLLEGE OF COMMERCE

PAMPANAGAR GANGAVATHI, DIST: KOPPAL
AFFILIATED TO GULBARGA UNIVERSITY, GULBARGA
(NAAC ACCREDITED -”B” GRADE)
A PROJECT REPORT ON
“CUSTOMER SATISFACTION & ITS IMPACT ON SALES OF RCM
BUSINESS AT GANGAVATHI”
(A case Study of Gangavathi Branch)
SUBMITTED TO
GULBARGA UNIVERSITY, GULBARGA
SUBMITTED BY
VINOD
2009-10
G.H.N.COLLEGE GANGAVATHI-583227
The effectiveness of distribution channel of coca cola co. at Gangavathi
GUNJAHALLI HIRE NAGAPPA COLLEGE OF COMMERCE,

PAMPANAGAR, GANGAVATHI. DIST: KOPPAL
AFFILIATED TO GULBARGA UNIVERSITY, GULBARGA
(NAAC ACCREDITED – “B” GRADE)
CERTIFICATE
This is to certify that Sri VINOD B.B.M VI semester student of this
institution, he has prepared project report entitled “CUSTOMER
SATISFACTION & ITS IMPACT ON SALES OF RCM BUSINESS
AT GANGAVATHI” is authentic report carried out under our
guidance and supervision for the partial fulfillment for completion of
degree of B.B.M of Gulbarga University, Gulbarga.
Date:
Place:
Project Report Guide Principal
DECLARATION
I hereby declare that this project report title “ CUSTOMER

SATISFACTION & ITS IMPACT ON SALES OF RCM BUSINESS
AT GANGAVATHI ”, during 2009-10 as part of corporate exposure &
learning in carried under guidance of our faculty.
Place: Gangavathi VINOD
Date:
Contents
Chapter-I
 Introduction
 Executive summery
 Objectives of the study
 Scope of the study
 Benefits of the study
 Data collection approach
 Limitations of Study
Chapter-II
 Organization profile
 Values & commitment at the coca cola company

 Value chain
 Working with the bottlers
 The coca cola system
Chapter-III
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.Co
ca cola production I India
............................Sta
te’s of coca cola co. India
............................Or
ganizations sales chart for Karnataka
............................Dis
tribution channel of coca cola production
............................Ty
pes of operations under taken by the company
............................Sa
mpling
Chapter-IV
 Data Analysis & Interpretation
Chapter—V
 Findings
 Suggestions
 Conclusion
ANNEXURE
 Questionnaires
 Bibliography
CHAPTER-I
• Executive summery
• Introduction
• Objectives of the study
• Scope of the study
• Benefits of the study
• Data collection approach
• Limitations of Study
INTRODUCTION
The project started from 2nd AUG 2009 to 31st AUG 2009 and 16 weeks (2
days in a week from Jan 08 to April 08) in Gangavathi city.
The project was carried due to the criteria of the University for the
Completion of Masters of Business Administration.The main objective of this
in-plant training was to get an exposure to the working environment in an
organization. This was an opportunity for me to relate concepts learned by me
to the practical application in the organization.
This in-plant training helped me in interacting with a highly experience
managers which helped me to improve my practical knowledge.
EXECUTIVE SUMMARY
This project report is on the “THE STUDY TO ASSESS THE

EFFECTIVENESS OF DISTRIBUTION CHANNEL OF COCA COLA
CO. AT GANGAVATHI CITY”
This project for done for Coca-Cola Pvt. Ltd. With their distribution points at
Gangavathi Ultimate objective of the every organization is to satisfy the needs
and wants of their customer in which distribution channel plays a vital role.
The study will be done taking 100 as the Sample Size. The sampling method
used y is “Stratified Random Sampling “. The source for conducting survey
was taken from the distributors Red Outlet List provided by the distributors in
Gangavathi city.
This study helps the organization in the following way:

• To know performance of existing distribution channel
• To know if there are any flows in the channel
• To know their retailers satisfaction level with respect to the existing
channel.
OBJECTIVE OF THE PROJECT:
“The main objective behind this project is to study and understand

distribution channel and its effectiveness in bringing products in right time to
right customers”
To study the main objective the following are the necessities:
The performance level of the existing distribution channel.

The cover area
Problems related to the existing channel
Satisfaction level of the customers (retailers) towards the existing distribution
channel.
SCOPE OF THE STUDY
The study is confined to the retailers in Gangavathi city
BENEFITS OF THE STUDY
The study will confront me the following:
The culture of the company

Their distribution channel
Satisfaction level of the customers
DATA COLLECION APPROACH:
The Data was collected through two sources,

1. Primary sources:
• Questionnaire
• Personal interaction
2. Secondary sources:
• Related information from internet:
• Organization Report
LIMITATIONS OF THE STUDY
Due to the time constraint the study is restricted only to the retailers of
Gangavathi City and not to the surrounding villages
The coverage of the objective of the study is limited to the extent of the
information given by the company.
Inspire of the above mentioned limitations, every effort has been made and
the report is prepared to the best of my knowledge.
CHAPTER-II
• Organization profile
• Values & commitment at the coca cola company
• Value chain
• Working with the bottlers
• The coca cola system
ORGANIZATION PROFILE
COCA – COLA Pvt. Ltd

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 today1894 … 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 Asia Griggs Candler, who owned the Company.
Candler thanked him but took no action. One of his nephews already had
urged that Coca-Cola be bottled, but Candler focused on fountain sales.1899
… The first bottling agreement two young attorneys from Chattanooga,
Tennessee believed they could build 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 the sum of one dollar. A third Chattanooga lawyer, John T. Lupton,
soon joined their venture.1900-1909 … Rapid growth the three pioneer
bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling
technology, which improved efficiency and product quality. By 1909, nearly
400 Coca-Cola bottling plants were operating, most of them family-owned
businesses. Some were open only during hot-weather months when demand
was high.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's one of the most recognized icons in the world - even in the dark!
1920s … Bottling overtakes
Fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers
were operating in the U.S. Their ideas and zeal 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.
1920s and '30s … 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, Gangavathi, Italy and South Africa.
By the time World War II began, Coca-Cola was being bottled in 44

countries.
1940s … Post-war growth
During the war, 64 bottling plants were set up around the world to supply the
troops. This followed an urgent request for bottling equipment and materials
from General Eisenhower's base in North Africa. Many of these war-time
plants were later converted to civilian use, permanently enlarging the bottling
system and accelerating the growth of the Company's worldwide business.
1950s…Packaging Innovations
For the first time, consumers had choices of Coca-Cola package size and
type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10-,
12- and 26-ounce versions. Cans were also introduced, becoming generally
available in 1960.
1960sNewbrands
Introduced 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.
1970s and ‘80s… Consolidation
As technology led to a 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.
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 …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 between Coca-Cola bottlers, customers
and communities are the foundation on which the entire business grows.
Vision
”To achieve sustainable growth; we have established a vision with clear
goals.
• 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”.
Mission
”Everything we do is inspired by our enduring 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”.
Values
they are guided by shared values that they will live by as a company and as
individuals.
 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"
Beliefs
“There is much in our world to celebrate, refresh, strengthen and protect. The
Coca-Cola Company is a vibrant network of people, in over 200 countries,
putting citizenship into action. Through our actions as local citizens, we strive
every day to refresh the marketplace, enrich the workplace, protect the
environment and strengthen our communities”. We are a local employer, with
responsibility to enable our people to tap into their full potential; working at
their innovative best and representing the diversity of the world we serve”.
”We are an investor in local economies and a driver of marketplace

innovation, with a responsibility to act as a good steward of our natural
environment”.
”And we are a local citizen, understanding our responsibility to contribute to
an improved quality of life in our communities”.
Values and Commitments at The Coca-Cola Company
The reputation of The Coca-Cola Company is built on trust and respect. Our
employees and those who do business with us around the world know we are
committed to earning their trust with a set of values that represent the highest
standards of quality, integrity, excellence, compliance with the law, and
respect for the unique customs and cultures in communities where we operate.
Our Company has always endeavored to conduct business responsibly and

ethically. We respect international human rights principles aimed at
promoting and protecting human rights our acknowledgment of these
international principles is consistent with our dedication to enriching the
workplace, preserving the environment, strengthening the communities where
we operate.
Supplier Guiding Principles
The Supplier Guiding Principles (SGP) is a vital pillar of The Coca-Cola

Company's workplace accountability programs. These programs are driven by
the belief that good corporate citizenship is essential to our long-term
business success and must be reflected in our relationships and actions in our
workplaces and the workplaces of those who are authorized to directly supply
our business.
Recognizing that there are differences in laws, customs, and economic

conditions that affect business practices around the world, we believe that
shared values must serve as the foundation for relationships between The
Coca-Cola Company and its suppliers. The Supplier Guiding Principles
communicate our values and expectations and emphasize the importance of
responsible workplace policies and practices that comply, at a minimum, with
applicable environmental laws and with local labor laws and regulations. The
principles outlined below reflect the values we uphold in our own policies,
and we expect our direct suppliers to follow the spirit and intent of these
guiding principles.
• Freedom of Association and Collective Bargaining
Respect employees' right to join, form, or not to join a labor union without
fear of reprisal, intimidation or harassment. Where employees are
represented by a legally recognized union, establish a constructive
dialogue with their freely chosen representatives and bargain in good faith
with such representatives.
• Prohibit Child Labor

• Adhere to minimum age provisions of applicable laws and regulations.
• Prohibit Forced Labor and Abuse of Labor
• Prohibit physical abuse of employees and prohibit the use of all forms
of forced labor, including prison labor, indentured labor, bonded labor,
military labor or slave labor.
• Eliminate Discrimination
Maintain workplaces that are free from discrimination or physical or

verbal harassment. The basis for recruitment, hiring, placement, training,
compensation, and advancement should be qualifications, performance,
skills and experience.
• Work Hours and Wages
Compensate employees relative to the industry and local labor market.

Operate in full compliance with applicable wage, work hours, overtime
and benefits laws, and offer employees opportunities to develop their skills
and capabilities, and provide advancement opportunities where possible.
• Provide a Safe and Healthy Workplace
Provide a secure, safe and healthy workplace. Maintain a productive

workplace by minimizing the risk of accidents, injury, and exposure to
health risks.
• Protect the Environment

o Conduct business in ways which protect and preserve the
environment.
• 8. Compliance with Applicable Laws and Standards
Suppliers to The Coca-Cola Company and suppliers authorized by The

Coca-Cola Company are required to meet the following standards, at a
minimum, with respect to their operations as a whole:
• Laws and Regulations
Supplier will comply with all applicable local and national laws, rules,
regulations and requirements in the manufacturing and distribution of our
products and supplies and in the provision of services.
• Child Labor
Supplier will comply with all applicable local and national child labor
laws.
• Forced Labor
Supplier will not use forced, bonded, prison, military or compulsory labor.
• Abuse of Labor
Supplier will comply with all applicable local and national laws on abuse
of employees and will not physically abuse employees.
• Freedom of Association and Collective Bargaining
Supplier will comply with all applicable local and national laws on
freedom of association and collective bargaining.
• Discrimination
Supplier will comply with all applicable local and national discrimination
laws.
• Wages and Benefits
Supplier will comply with all applicable local and national wages and
benefits laws.
• Work Hours and Overtime
Supplier will comply with all applicable local and national work hours and
overtime laws.
• Health and Safety
Supplier will comply with all applicable local and national health and
safety laws.
• Environment
Supplier will comply with all applicable local and national environmental
laws.
• Demonstration of Compliance
Supplier must be able to demonstrate compliance with the Supplier

Guiding Principles at the request and satisfaction of The Coca-Cola
Company
These minimum requirements are a part of all agreements between The Coca-
Cola Company and its direct and authorized suppliers. We expect our
suppliers to develop and implement appropriate internal business processes to
ensure compliance with the Supplier Guiding Principles. The Company
routinely utilizes independent third-parties to assess suppliers' compliance
with the SGP. The assessments generally include confidential interviews with
employees and on-site contract workers. If a supplier fails to uphold any
aspect of the SGP requirements, the supplier is expected to implement
corrective actions. The Company reserves the right to terminate an agreement
with any supplier that cannot demonstrate that they are upholding the SGP
requirements.
Quality
We ensure the quality and safety of our beverages through The Coca-Cola
Quality System (TCCQS), our integrated approach to managing quality,
environment, health and safety. We continuously review TCCQS to ensure it
meets the most stringent and up-to-date global requirements related to food
safety, as well as quality management methods, industry best practices and
marketplace conditions.
In our ingredient evaluation laboratories, for example, we perform precise

analyses of fruit juices and other ingredients sent to us by our suppliers, to
ensure and to improve product quality. Our processes, too, undergo constant
scrutiny, to safeguard the water we use in our products and the packaging that
carries them to our consumers. We inform and educate our business partners
about our standards so that they meet the highest quality requirements. Under
(TCCQS) The Coca-Cola Quality System, quality is our highest business
objective and our enduring obligation.
worldwide initiative involving every aspect of our business. Everyone who
works for or with Coca-Cola is empowered and expected to maintain the
highest standards of quality in products, processes and relationships. TCCQS
mandates in-depth self-assessment throughout our operations, by all our
business units. This enables us to continually raise our standards.
The latest version of our system-Evolution 3, launched in 2004-has been
externally benchmarked against international quality standard ISO 9001. It
also incorporates the Hazard Analysis Critical Control Point system.
Value Chain
• Our Suppliers
Our suppliers include those business partners who supply our system
with materials, including ingredients, packaging and machinery as well
as goods and services. At a minimum, all authorized and direct
suppliers must comply with all applicable laws and regulations,
including those concerning child labor, forced labor, abuse of labor,
freedom of association and collective bargaining, discrimination, wages
and benefits, working hours and overtime, health and safety, and
environmental practices. All our new agreements with suppliers require
compliance with our Supplier Guiding Principles.
Our Customers
Our customers include large, international chains of retailers and
restaurants, as well as small, independent businesses. Some of our
customers are major corporations as globally familiar as the name
Coca-Cola; others are the corner market or the local pushcart vendor.
Whether customers are large or small, we work with them to create
mutual benefit. Helping them to grow their businesses helps to grow
ours, too. Together with our bottling partners, we serve our customers
through account management teams, providing services and support
tailored to their needs.
Customer Development and Training: We provide support to smaller
customers to help make their businesses more efficient and profitable.
These centers provided training in general management, marketing,
finance, inventory management and customer service-at no cost-to
more than 21,000 independent retailers in 2005.
\We also work with customers to broaden the range of beverages they
offer, provide nutritional information and ensure our beverages are
marketed responsibly.
Packaging - Why It Matters
Far from being a burden and waste, packaging adds value to products by
extending the shelf-life of goods, minimizing breakage, reducing
transportation and handling costs, safeguarding public health and providing
product-use information and convenience to the consumer. The negative
perceptions of packaging simply as a troublesome byproduct are at direct
odds with the significant role it plays in society.
Recognizing the role of packaging in no way diminishes the need to further

minimize its impact on the environment. In fact, in an emerging era of scarcer
natural resources, rising energy costs and greater global environmental
awareness, companies focused on long-term success are moving beyond
simply limiting impacts and are working toward competitive packaging
solutions that maximize social and environmental value.
About Bottling
One of our great strengths is our ability to conduct business on a worldwide

scale while maintaining a local approach. At the heart of this approach is our
bottling system. Before any of our 2,400 beverage products is consumed by
anybody around the world, it has to be produced, packaged and distributed.
Since we reach 6 billion consumers in over 200 countries, our bottling system
has to be the best. Our business opportunities are enormous and our
commitment to our consumers and communities is great.
WORKING WITH THE BOTTLERS
PLANET: We act as a responsible global citizen, focused on our

environment efforts and making a difference wherever we engage.
PEOPLE: We inspire to be a great workplace where people are inspired to be

the best they can be.
PROFIT: We maximize returns to our shareowners while being mindful of

our overall responsibilities.
PORTFOLIO: We bring the global market place beverage brands that

anticipate and satisfy people’s desires and needs.
PARTNERS: We actively nurture a winning network of beverages and

bottling patterns building mutual loyalty
Our bottling partners are local companies so they are rooted in their
communities, thinking and acting locally. They are employers, purchasers of
local goods and services, good neighbors, and, of course, producers of the
world's most popular beverages.
It's a big job, and sometimes it's done quite creatively. In Indonesia, for
instance, boats transport Coca-Cola® and our other brands between the many
hundreds of islands that make up that nation. In the Amazon, where the main
road is often the river itself, water-borne distribution is also common. In some
of the higher elevations of the Andes, Coca-Cola is sometimes transported by
four-legged power. Across much of Africa, bottlers deliver to thousands of
family-run kiosks and home-based stores on which local economies depend.
Our System: How We Operate
Coca-Cola is often thought to be one brand made by one company. In reality,

it is a vibrant business system, in more than 200 countries around the world,
made up of The Coca-Cola Company and more than 300 Coca-Cola bottlers.
Most of our bottlers are independently owned and not controlled by our
Company. Together with our bottling partners, we operate the most extensive
beverage distribution system in the world. Known informally as the Coca-
Cola system, this network of 848 plants, approximately 200,000 vehicles and
more than nine million coolers and vending machines helps us to manufacture
and distribute our products to customers and consumers around the world,
where our beverages are consumed at a rate of more than 1.3 billion servings
each day.
The Coca-Cola System
• The Coca-Cola Company
Owns the global Coca-Cola brand and owns or licenses over 400 other
brands. Manufactures and sells beverage concentrate and syrup to
bottling and canning operations, distributors, fountain wholesalers and
some fountain retailers. Manufactures and sells some finished
beverages, both carbonated and noncarbonated.
• Our Bottling Partners
Combine our syrup with carbonated water or combine our concentrate

with sweetener and water and/or carbonated water (depending on the
product) to produce a finished beverage.
Place beverages in cans or bottles and then transport the finished

beverages to warehouses or to customer locations.
Our bottling partners operate the majority of Coca-Cola bottling and canning
operations, producing and distributing more than 80 percent of our worldwide
volume.
The Coca-Cola Company also operates a limited number of bottling and

canning facilities.
Bottling partners range from international and publicly traded businesses to

small, family-owned operations. Although we invest in the majority of
bottling companies, we have a controlling ownership interest in only a small
number, meaning that the vast majority of bottlers operate with separate
governance and management structures, and in accordance with applicable
laws and customs. Our relationship with these partners is one of collaboration
and support, based on mutual self-interest, common goals and shared values.
We make every effort to positively influence environmental activities and
policies throughout our bottling system and to provide information from both
our Company-owned operations and our broader system.
Community
We live and work in more than 200 countries and have deep roots in
communities around the world. We are connected to the lives and livelihoods
of those communities. And we are intensely committed to the economic
success and continued growth of these communities.
We contribute to economic success through our day-to-day business, by

providing jobs in our own operations as well as jobs in businesses we touch
along the way. We call it the multiplier effect, where we not only positively
affect those directly employed by our business but also create and expand
businesses that do business with us.
In addition to economic impact, we invest in local economies through

substantive and locally relevant community programs. Wherever we operate,
we work with local leaders, businesses and governments to identify
community needs and aspirations. The resulting partnerships and programs
are an important part of how we contribute to the well-being of the
communities where we operate.
Economic Impact
The Coca-Cola business is essentially a local one. With our bottling partners,
we produce our products in more than 800 plants around the world. In those
plants and other facilities, we employ local people, pay taxes to governments,
pay suppliers for goods, services and capital equipment, and support
community investment programs.
We support socioeconomic development in developing and emerging markets

through economic opportunities and wealth creation as well as technology
and knowledge transfer; local entrepreneurship; and other international
investment.
Local Initiatives
The Company and our bottling partners contribute to a wide range of

community causes in countries around the world. In keeping with the local
nature of our business and the differing needs of individual communities, our
approach is primarily a local one, with community investment priorities
determined on a market-by-market basis. We work with people in
communities and governmental organizations and NGOs to create and support
projects most relevant to communities.
Responding to Local Needs: We support a wide range of initiatives that

respond to specific local needs:
• Health: Tackling such health issues as polio, tuberculosis, hepatitis,

malnutrition and hygiene education
• HIV/AIDS: Educational campaigns, condom distribution, HIV/AIDS
orphanages, hospices
• Micro enterprise: Supporting self-help groups, establishing funds,
providing training
• Cultural heritage and the arts: Promoting the arts and artists, preserving
heritage
CHAPTER-III
..........................Co
ca cola production I India
..........................Sta
te’s of coca cola co. India
..........................Or
ganizations sales chart for Karnataka
..........................Dis
tribution channel of coca cola production
..........................Ty
pes of operations under taken by the company
..........................Sa
mpling
COCA-COLA PRODUCTS IN INDIA:
1. Coca-cola
2. Thumps Up
3. Sprite
4. Fanta
5. Limca
6. Maaza
7. Kinley
8. Minute Maid
Out of which
• Coca-cola, Maaza, Kinley, Sprite, Minute Maid are Coca-Cola

products
• Thumps up, Limca, Fanta are the products of Parle which are
purchased by the Coca-Cola Co.
PROFITABLE BRANDS ARE:
• 300ml - Maaza, Coke, Sprite

• 600 ml - all brands
• 2 liter – All brands
STATE”S OF COCA-COLA Co. INDIA
India is been divided into three (3) strata’s they are
A) North b) South c) Central
DIVISION OF THE SOUTH INDIA FOR COCA-COLA INDIA
SOUTH (REGIONAL VICE PRESIDENT)
ANDRAPRADESH CHENNAI KERALA

KARNATAKA
Note: Each state has an AREA GENERAL MANAGER (A.G.M)
A.G.M. for Karnataka is Mr. Krishnan
DIVISION FOR KARNATAKA UNIT OF COCA-COLA INDIA
The entire Karnataka unit is divided into mainly TWO (2) territories and
accordingly there is general sales manager been assigned to each territory.
1. North Karnataka
2. South Karnataka
Note: The AGM for North Karnataka is: Mr. Vilas
The AGM for South Karnataka is: Mr. Deepak
South Karnataka is further divided into
1. Bangalore city
2. Up-country consisting places like Mysore Mangalore, Tumkur, Kolar
etc.
ORGANIZATION’S SALES CHART FOR KARNATAKA
AREA GENERAL MANAGER
GENERAL SALES MANAGER
SALES MANAGER
ASSOCIATE SALES MANAGER
AREA SALES MANAGER
SENIOR SALES EXECUTIVE
EXECUTIVE
SALES OFFICER
TRAINEE SALES OFFICER
RURAL SALES PROMOTER / MARKET DEVELOPERS
DISTRIBUTION CHANNEL OF COCA-COLA PRODUCTS FOR
GANGAVATHI, GADAG, HAVERI, NORH KANARA
BOTTLING PLANT (BANGALORE)
DEPOT (DHARWAD)
DISTRIBUTORS
(GANGAVATHI, GADAG, HAVERI, NORH KANARA)
RETAILERS
CONSUMERS
BANGALORE PLANT DETAILS
PLANT
ACCOUNTS LOGISTICS SALES H R MARKETING QUALITY

CONTROL
The plant is divided into the following FOUR (4) departments,
1. ACCOUNTS
2. LOGISTICS
3. SALES
4. HUMAN RESOURCE
5. MARKETING
6. QUALITY CONTROL
TYPES OF OPERATIONS UNDERTAKEN BY THE COMPANY
Coca-cola India Holding, the intermix of the company-owned bottling

operations (COBO’s) and franchisee owned bottling operations (FOBO’s).
 COMPANY-OWNED BOTTLING OPERATIONS (COBOS): COBO

refers to the operations directly carried by the company. These COBO’s have
to work under the guidelines by the Coca-Cola Co. There are three (3) COBO
units in South India they are at following places:
 Bangalore (Biddi)
 Andhra Pradesh
 Chennai
“FRANCHISEE OWNED BOTTLING OPERATIONS” (FOBO’S):
FOBO’s refers to the operations carried out by the FRANCHISER’s
The plant at Hospet was initially a FOBO unit but now it’s been purchased by
the company and soon the company operations will start in that plant.
DISTRIBUTORS DETAILS IN GANGAVATHI
Criteria for selecting the distributors:
The company looks at the prospects before permitting/Authorizing for

distributor. Therefore the criteria’s are as follows,
 He should have a godown

 Vehicles
 Manpower
 Deposit for cases/crates at the rate of 200 each
 Liquid value
Distributors in Gangavathi
1. Trimurthi
2. Desai
3. Tejasvi
Number of units possessed by distributors
In season - 14 units
In off-season – 6 units
* Units refers to the vehicles possessed by the distributors for local logistics
Factors influencing the assignment of areas to distributor’s salesman
1. An average number of outlets the salesman effectively works on. A

salesman can handle 60 outlets on an average effectively in a day
2. Depending on the frequency of a particular route. The distributors
follow three types of frequencies they are:
A) Daily
b) Alternative days
c) Once a week
Note: Once in a week is only followed for the up country areas
Working of distributors The distributor first has to maintain the following
• The Brand pack separately after unloading the vehicle i.e. the brand
order in the following sequence
• Coke
• Lime
• Orange
• Juice
• Water
• Days stock to meet the demand.
The company gives target to the distributors and these distributors with help
of sales executives break the target into
1. Daily
2. Weekly
3. Brand wise
4. Sales wise
Here the distributor focuses on weaker brands and tries to push maximum
number of these weaker units into the mixed cases ordered by the retailers.
For Ex: The sales of Fanta are considered to be low then the distributor adds
more number of Fanta units in a mixed case.
The distributor have to maintain a four (4) day stock with them which will
become the reorder level once when the order is placed at the Dharwad depot
the stock comes up the next day but an important point to note here is unless
and until the empty bottles reach the depot the new stock will not reach the
distributor.
Distributors route Planning: Distributors identify two routes they are,
• Potential route
• Non Potential route
Note: For Potential the vehicle goes daily and for non potentials it goes
once in a week
The potential routes are those routes in which the distributor gets
maximum business as the number of outlets will be more and therefore the
vehicle goes daily to meet the market demand.
Ex: If a distributor has 400 outlets in his area he has to plan accordingly as
per his route wherein he has to visit 60 outlets per route.
OPERATIONAL PLANS FOR THE YEAR
Distributors have two plans a year
1. First plan from January 1st to June 15th

2. Second Plan from June 15th to December 31st
FIRST PLAN:
This plan is considered as yielding season where maximum business will be

earned. The 70% of the target needs to be achieved during this season
SECOND PLAN:
Here in this plan there will be minimum business and during this season there
will be lot of promotional activities undertaken.
The role of distributor in market:
The distributors’ salesman is trained properly with respect to his behaviors

with the retailers. As soon as the vehicle goes to the outlet it is the duty of the
sales person to.
1. Greet the retailer and have a look at the cooler/refrigerator.

2. He has to suggest the retailer about the stock needed
3. Convince him for purchase
4. Place the products in the cooler as per brand order
5. Look at the warm displays
6. Follow up and handle complaints
Support from the company to the distributor
The company supports the distributors in terms of incentives during the off
season i.e. during the second plan in order to retain the distributor.
EXAMPLE FOR CALCULATION OF ROI (RETURN ON
INVESTMENTS) FOR DISTRIBUTORS:
The deposit of 1500 cases at the rate of 200 Rs per case = 3, 00,000
Liquid Value on an average including all mini, 300 ml, half litre and 2
liter = 2, 00,000
Go down deposit = 20,000
Vehicle = 4, 80,000
Therefore the total investment is Rs 10, 00,000
Now to calculate the ROI = ({Volume X Case rate} – Expenses) / Investment
If a distributor has 50,000 volume, 11 Rs per case and Other Expenses 35,000
then,
50,000 X 11 =55,000 – 35,000 =20,000 Rs
Therefore ROI = 20,000 /10, 00,000 = 0.20 = 20%

Hence the ROI is favorable.
SAMPLING
Selection of Sample:
Sampling allows us to concentrate our attention upon relatively small number
of people and hence devote more energy to ensure that the information
collected from them is accurate.
POPULATION:
• People from the Gangavathi city.
SAMPLE FRAME:
• Retailers at Gangavathi city.
SAMPLE UNIT:
• Retailers who sell Cold-drinks
SAMPLING SIZE:
• 100 retailers only.
SAMPLE METHOD:
• Stratified Sampling.
RESEARCH DESIGN
The research was divided into two parts they were,
1. Survey
2. Implementation
In the month of December survey was conducted and in the remaining period
implementation was carried out.
Survey:
For the survey purpose the entire Gangavathi city was divided into three
strata’s,
1. Bus stand area which had places like Bus stand, Fort road , Khade
Bazaar, Chavat galli, Shivaji Nagar etc.
2. College Road , Tilakwadi , Vadagoan, Shahpur etc.
3. Club road, Sadhaahiv nagar, Azam nagar, Nehru nagar, JNMC road
Shiva Basav nagar etc.
As per the route planner provided by the company the survey was conducted
through questionnaires. The route
planner consisted the list of RED OUTLETS
DETAILS OF RED OUTLETS:
The Red outlets are divided as:
1. BRONZE
2. SILVER
3. GOLD
4. DIAMOND
The Basis for the above division is as follows
Bronze outlets are those outlets who sell less than 299 cases a Year.
Silver outlets are those outlets who sell 300 cases to 499 cases a Year.
Gold outlets are those outlets who sell 500 cases to 799 cases a Year.
Diamond outlets are those outlets that sell 800 and above cases a Year.
Implementation
After the survey was conducted the Implementation work was carried out for
the surveyed outlets, during the remaining period i.e. 16 weeks (2 days in a
week from Jan 07 to April 07).
In this procedure the visits were made to the outlets along with the company
vehicle and seen that the different problems encountered with the outlets
during the survey were sorted out and seen to it the promotional activities
were actually implemented.
The problems of display, Credit etc was known during survey. So these
problems were solved during the implementation part.
It was also seen that every outlet survey had a proper display of the
company’s product.
In short the product delivery system was learnt.
MEASURMENT TECHNIQUES:
This project is analyzed with the help of SPSS software wherein the data is
analyzed with the help of
• Bar Graphs
• Frequency tables
• Percentage tables
CHAPTER-IV
 Data Analysis & Interpretation
1. What is the nature of the outlet?
products frequency percent Valid Cumulative

percentage percentage
coke 23 23.0 23.0 23.0
Pepsi 1 1.0 1.0 24.0
shared 76 76.0 76.0 100.0
total 100 100.0 100.0
23
coke
pepsi
shared
24
76
Interpretation:
The above chart shows that out of the surveyed outlets 76% outlets surveyed
are shared outlets, 23% are coke monopoly outlets, and 1% is Pepsi
monopoly.
2) How is the relationship with the distributor?
product frequency Percentage Valid Cumulative

percentage percent
Good 99 99.0 99.0 99.0
Bad 1 1.0 1.0 100.0
Total 100 100.0 100
good
bad
99
Interpretation:
The above chart shows that 99% of the retailers surveyed had good opinion
towards the distributors; therefore the distributors have to maintain the same.
Only 1% of the retailers surveyed have bad opinion therefore the distributors
have to control this aspect because the word of mouth plays a very important
role and they should try to make their relationship 100%.
Q3) How many times the distributor visits outlets per week
product Frequency Percentage Valid % Cumulative %

Once 7 7.0 7.0 7.0
Alternative 47 47.0 47.0 54.0
Daily 46 46.0 46.0 100.0
Total 100 100.0 100.0
47% once
46% 46% alternative
daily
7%
Interpretation
The above chart reveals the frequency of visit made by the distributor in the
market. This chart shows that to 47% of the outlets surveyed the visit was on
alternative days, 46% of the outlets surveyed the visit was on daily basis and
7% of the outlets surveyed the visits are made once a week. This shows that
the company is mostly following the Alternative and daily routes.
Q4) how many times he is expected to visit Statistics
product Frequency percentage Valid Cumulative

percent percent
Once 3 3.0 3.0 3.0
alternative 36 36.0 36.0 39.0
daily 61 61.0 61.0 100.0
Total 100 100.0 100.0
61 daily
alternative
il y
da
36 once
e
iv
at
3
rn
te
al
ce
on
0 50 100
Interpretation:
The above chart shows that there is a huge demand for Coke Products in
Gangavathi city and therefore 61% of the retailers are expecting daily visits
from the distributors in order to meet the demand from the consumers,
therefore the company has to look to this aspect seriously. 36% expect an
alternative day’s visit instead of daily visits; the outlets which are non
potential outlets expect the distributor to visit once a week
Q 5) Are coke's product delivered on time Statistics
Products Frequency Percentage Valid % Cumulative %

Yes 75 75.0 75.0 75.0
No 25 25.0 25.0 100.0
Total 100 100.0 100.0
Are coke's product delivered on time

80
60
40
20
Percent
0
yes No
Are coke's product delivered on time
Interpretation:
The above chart shows that delivery of the products is on time and 75% of the
retailers have agreed to this question and 25% have not agreed.
The company has to make efforts to supply the products to these 25% outlets.
Q 6) Are you satisfied with the supply each time?
Product Frequency Percent Valid % Cumulative %

Yes 66 66.0 66.0 66.0
No 34 33.0 33.0 100.
Total 100 100.0 100.0
Are yousatisfied withthe supply eachtime

70
60
50
40
30
20
Percent
10
0
yes No
Are you satisfied with the supply each time
Interpretation:
The chart shows that the company is effective during each supply with respect
to the behaviors and suggestions to the retailers.
Therefore 66% of the retailers surveyed are satisfied with the supply during
each delivery and 34% are dissatisfied with the same.
Q 7) Sales per week Statistics
Product Frequency Percentage Valid % Cumulative %

0-10 50 50.0 50.0 50.0
10-20 45 45.0 45.0 95.0
20-above 5 5.0 5.0 100.0
Total 100 100 100.0
Sales per week

60
50
40
30
20
Percent
10
0
0-10 10-20 20 and above
Sales per week
Interpretation:
The chart shows that the sales per week of 50% of the retailers is 0-10 cases
and 45% is 10-20 cases so efforts should be made to increase the sales by
proper supply and other promotional activities. Another method is to supply
according to their wants and there should not be shortage of products to these
outlets.
CHAPTER-V
 Findings
 Suggestions
 Conclusion
FINDINGS
 Most of the outlets are shared.

 The basic problem is that the supply from the plant to the depot and then to
the distributors takes a long time due to which the distributors are not in the
position the supply the required quantity to the retailers.
 On an average the sales per week of the retailers is between 0-20 cases.
 The sales people and the distributor have maintained good relationship
with the retailers.
 On an average the expected visits are daily.
SUGGESTIONS
1. The company must have a super stockiest in gangavathi city so that this
can cater not only the need of the gangavathi market but also the surroundings
places.
2. The company has to convert Pepsi outlets into coke outlets by giving
them promotions like schemes, gifts, proper supply.
3. The company has to start its plant in Hospet as soon as possible so that
there will be no problem to the distributors as well as the retailers with respect
to the stock.
4. The company has to put on their best efforts to convert the76% shared
outlets into coke monopoly outlets by giving promotional activities and also
by on time delivery of stocks which plays a very important role.
5. 36% of the retailers expect alternative days visits instead of daily visits,
the outlets which are non potential outlets expect the distributor to visit once a
week therefore the company has to supply accordingly.
6. To make the satisfaction level of the retailers to 100% the company has
to supply properly to the remaining 34% outlets surveyed.
CONCLUSION
Distribution Channel plays a very important role especially with respect to the
soft drink industry because if the product is not available on time the
consumes will switch on to other brands and the company will lose its market
share and hence an effective distribution channel is the need of this industry.
The distribution channel of Coca Cola Company is effective
ANNEXURE
Questionnaires
Bibliography
QUESTIONAIRE FOR RETAILERS
Name: ____________________________
Address:___________________________
Contact No: _______________________
Email ID: __________________________
1. Gender: Male ( ) Female ( )
2. What is the nature of outlet?
a) Coke b) Pepsi c) shared
3. Relationship of the distributor/market developers/sales executives with you
a) Good b) Bad
4. How many times a distributor visits your outlet per
week?
a) Once b) alternative days c) daily
5. Are coke’s product delivered in time?
a) Yes b) no
6. Are you satisfied with the supply of coke during each delivery?
a) Yes b) no
7. Your sales per week (No. of cases)
a) 0-10 b) 10-20 c) 20 above
8) How do you rate the service of coca cola?
Good Bad Average
9) Are the coca cola outlets in the gangavathi city are connivance to reach?
1) Yes 2) No
12) Display of the products in the coca cola outlets?
1) Organized 2) unorganized
10) Which factor do you consider while purchasing coca cola products?
1) Product quality
2) Incentive
3) Service of the coca cola
4) Reasonable Price
5) Availability of the product at coca cola outlets.
BIBLOGRAPHY:
All the information needed to complete this project is obtained from the
following sources:
1. Mr. Rajesh Coke Sales Executive for North Karnataka.

2. Company Website: www.coca-cola.com
3. Search Engines
4. Market Developers.
5. Distributors
6. Marketing Research Book by Toll and Hawkins

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The effectiveness of distribution channel of coca cola co.

GUNJAHALLI HIRE NAGAPPA COLLEGE OF COMMERCE

GUNJAHALLI HIRE NAGAPPA COLLEGE OF COMMERCE,

Project Report Guide Principal

I hereby declare that this project report title “ CUSTOMER

Place: Gangavathi VINOD

 Values & commitment at the coca cola company

This project report is on the “THE STUDY TO ASSESS THE

This study helps the organization in the following way:

OBJECTIVE OF THE PROJECT:

“The main objective behind this project is to study and understand

To study the main objective the following are the necessities:

The performance level of the existing distribution channel.

SCOPE OF THE STUDY

The study is confined to the retailers in Gangavathi city

BENEFITS OF THE STUDY

The study will confront me the following:

The culture of the company

DATA COLLECION APPROACH:

The Data was collected through two sources,

LIMITATIONS OF THE STUDY

COCA – COLA Pvt. Ltd

Tennessee believed they could build a business around bottling Coca-Cola. In

By the time World War II began, Coca-Cola was being bottled in 44

1990s … New and growing

• Profit: Maximizing return to shareowners while being mindful of

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

 Leadership: "The courage to shape a better future"

”We are an investor in local economies and a driver of marketplace

Values and Commitments at The Coca-Cola Company

Our Company has always endeavored to conduct business responsibly and

Supplier Guiding Principles

The Supplier Guiding Principles (SGP) is a vital pillar of The Coca-Cola

Recognizing that there are differences in laws, customs, and economic

• Freedom of Association and Collective Bargaining

• Prohibit Child Labor

Maintain workplaces that are free from discrimination or physical or

• Work Hours and Wages

Compensate employees relative to the industry and local labor market.

• Provide a Safe and Healthy Workplace

Provide a secure, safe and healthy workplace. Maintain a productive

• Protect the Environment

Suppliers to The Coca-Cola Company and suppliers authorized by The

• Laws and Regulations

• Freedom of Association and Collective Bargaining

• Work Hours and Overtime

• Health and Safety

Supplier must be able to demonstrate compliance with the Supplier

In our ingredient evaluation laboratories, for example, we perform precise

Packaging - Why It Matters

Recognizing the role of packaging in no way diminishes the need to further

One of our great strengths is our ability to conduct business on a worldwide

WORKING WITH THE BOTTLERS

PLANET: We act as a responsible global citizen, focused on our

PEOPLE: We inspire to be a great workplace where people are inspired to be

PROFIT: We maximize returns to our shareowners while being mindful of

PORTFOLIO: We bring the global market place beverage brands that

PARTNERS: We actively nurture a winning network of beverages and

Our System: How We Operate

Coca-Cola is often thought to be one brand made by one company. In reality,

The Coca-Cola System

• The Coca-Cola Company