Project report of coca cola summer internship

OF
The world’s most recognized trademark it is
recognized by 94% of the world’s population

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
1: INTRODUCTION
1.1: A brief insight- The FMCG Industry in India
1.2: A brief insight- The Beverage Industry in India
Figure 1: Beverage Industry in India
CHAPTER 2: THE COCA-COLA COMPANY
2.1: History
2.2: History of Bottling
Figure 2 Contour bottle design
2.3: The Coca-Cola Bottle over the Years
Figure 3: The Coca-Cola Bottle over the Years
2.4: Production
2.5 Brand Portfolio
2.6: Manifesto for Growth
2.6.1: Values
2.6.2: Mission
2.6.3: Vision for Sustainable Growth
Figure 4: Vision for Sustainable Growth
CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED
3.1: About the Company
Figure 5: Location of COBO, FOBO and Contract packers
3.2: Manifesto for Growth
3.2.1:Values
3.2.2:Vision for Sustainable Growth

3.2.3:Mission
3.2.4: Quality Policy
3.3: Organization Structure of Coca-Cola India
Figure 6: Organization Structure of Coca-Cola India
Figure 7: Organization Structure of Coca-Cola India
3.4: Organization Structure of the Sales DepartmentinHCCBPL
Figure 8: Organization Structure of the Sales Department
3.5: Manufacturing Unit of HCCBP
Figure 9: Chain followed from Manufacture to Distribution
3.6: Manufacturing process at HCCBPL
Figure 10: Manufacturing process
3.7: Business Plan model at HCCBPL
Figure 11: Business Plan model at HCCBPL
CHAPTER 4: PRODUCCTS
4.1: Packaging detailS

CHAPTER 5: PROJECT:
Distribution network
CHAPTER 6: Methodology
6.1: Research Methodology
6.2: Data Analysis
6.3: Findings
6.4: Suggestions
CHAPTER 7: CONCLUSION
DATA SOURCES
APPENDIX

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, 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 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.

• . 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 2014, the FMCG sector will be worth Rs.143000
crores. The sector being one of the biggest sectors of the
Indian Economy .
•
• It will provide up to 4 million jobs. (Source: HCCBPL,
Monthly Circular, March)
• The FMCG sector consists of the following categories:

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
•
• 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:
•

• Beverages:-
• Alcoholic , Non Alcoholic
• Carbonated , Non Carbonated
• Cola , non cola non cola

• 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
•
• 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.
•

CHAPTER 2: THE COCA-COLA COMPANY
2.1: HISTORY
•
• John Smyth Pemberton, a pharmacist, first introduced Coca-Cola 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.
•
• 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 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:
•
• 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 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.
• 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.
• 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 the 1990s: New and growing markets
•
• Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the
Company invested heavily to build plants in Eastern Europe. As the century
closed, more than $1.5 billion was committed to new bottling facilities in
Africa.
• 21st Century: Coca-Cola today
•
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers
seek brands that honor local identity and the distinctiveness of local
markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the
foundation on which the entire business grows.

Coca cola bottles over the years

• 2.4 Production
•
• Ingredients
• Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
• Caffeine
• Phosphoric acid
• Caramel color (E150d)
• Natural flavorings
• A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar, approximately 10
teaspoons),50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.
•
• Formula of natural flavorings
• Coca-Cola formula:
•
• The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are listed on the side of
the bottle or can) is a trade secret. The original copy of the formula was held in SunTrust Bank's main vault in
Atlanta for 86 years. Its predecessor, the Trust Company, was the underwriter for the Coca-Cola Company's initial
public offering in 1919. On December 8, 2011, the original secret formula was moved from the vault at SunTrust
Banks to a new vault containing the formula which will be on display for visitors to its World of Coca-Cola museum
in downtown Atlanta.
•
•

• A popular myth states that only two executives have
access to the formula, with each executive having only
half the formula The truth is that while Coca-Cola does
have a rule restricting access to only two executives,
each knows the entire formula and others, in addition
to the prescribed duo, have known the formulation
process.
• On February 11, 2011, Ira Glass revealed on
his PRI radio show, This American Life, that the secret
formula to Coca-Cola had been uncovered in a 1979
newspaper. The formula found basically matched the
formula found in Pemberton's diary.

• Logo design
•
• The famous Coca-Cola logo was created by John Pemberton's
bookkeeper, Frank Mason Robinson, in 1885.Robinson came up
with the name and chose the logo's distinctive cursive script.
The typeface used, known as Spencerian script, was developed in
the mid-19th century and was the dominant form of formal
handwriting in the United States during that period.
• Robinson also played a significant role in early Coca-Cola
advertising. His promotional suggestions to Pemberton included
giving away thousands of free drink coupons and plastering the city
of Atlanta with publicity banners and streetcar signs

• 2.6: MANIFESTO FOR GROWTH
•
• 2.6.1: 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

• 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 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.

LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA
location of cobo fobo and contract
packing 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.
•
• 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.

• 3.2.3: 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
•
• 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.”
•

ORGANIZATION STRUCTURE OF
COCA-COLA IN INDIA
Chief Executive
Officer
Vice President
Supply Chain
Chief Finance
Officer
Human Resource
Director
Vice President
BSG
Regional Vice
President
(North)
Regional Vice
President
(Central)

Region Vice
President
AGM/AOD
Unit 1
AGM/AOD
Unit 2
AGM/AOD
Unit 3
AGM/AOD
Unit4
Region Finance
Region Human
Resource
Region Customer
Service
Region External
Affairs
Region Cold Drink
Region Legal
Region BSG
Region
Director/Manager
Market Execution
Region Capability
Management
Region Channel

ORGANIZATION STRUCTURE OF THE
SALES DEPARTMENT IN HCCBPL
AGM/AOD
Plant
Manage
r
Route to
Market
Human
Resource
Manager
Finance
Manager
General
Sales
Manager
Area Sales
Manager
Sales
Executiv
e
Market
Develop
er
Distributors
And
Salesmen
Channel
Manager
Marketin
g
Key
Accounts
Area
Capability
Manager
Sales
Trainers

• 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.

• The manufacturing of the products of Coca-Cola involves the following steps:
•
• Water is received from the River Cauvery and it passes through the water treatment plant, further
passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.
•
• In the syrup room, the concentrate received from another bottling plant situated at Pune, is
blended with the sugar syrup
•
• Once both the water and the final syrup are ready, they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to the mixture to form the final product.
•
• On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and
washed for the purpose of filling in the final product in it. This step does not take place in the PET
bottle line as the bottles once used are disposed.
•
• The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles),
labeled and cased in order to be sent into the warehouse for distribution.
•

• 3.8: DISTRIBUTION NETWORK
•
• HCCBPL has a wide and well managed network of salesmen appointed for taking
up the responsibility of distribution of products to diverse parts of the cities. The
distribution channels are constructed in such a way that the demand of customers
is fulfilled at the right place and the right time when it is needed by them.
•
• A typical distribution chain at HCCBPL would be:
• Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse -
-- Retail Stock --- Retail Shelf --- Consumer
• The customers of the Company are divided into different categories and different
routes, and every salesman is assigned to one particular route, which is to be
followed by him on a daily basis called as beat. A detailed and well organized
distribution system contributes to the efficiency of the salesmen or MD. 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. Hotel ASIA
•
• 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)
•
• 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
•
• 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.
•
•

• Distribution is done both in primary and
secondary.
• Primary means from manufacturer plant to
distributors godown.
• Secondary means from distributors godown to
retailers outlet.
• All the working members of coke have to look
after both the primary and secondary
activities.

Distributors in jammu city
• In jammu city there are 8 distributors out of
which upon 4 I have worked.(top four)
• Sri Sai distributors ( Rehari Chungi)
• BEE EMM traders (Janipur)
• Khajuria Traders (Poonch House, Talab Tillo)
• Sahil Enterprises (Talab Tillo)
• MSD traders (Bus Stand)
• Friends cold drink (Sangrampur)
• Dheer cold drink (Lower Paloura)

• Out of all 8 Sahil enterprises is leading with
23% growth.
• Reasons for growth:-
• Large area to cover. A tough thing but still
managed to use it positively.
• Full dedication towards work.
• Better contacts with shopkeepers.

Stock in Pet and Rgb is sold in different volume from different
distributors. Ranging in an average from 200 units to 500 units per
day, per distributor depending upon area
Also there is a RTM who looks after route to market briefly known as
supply chain of the coca cola company.
Targets are being set for each and every distributor , from the top
management to lower order everyone is given target to achieve .
Certain benefits and incentives are there upon showing skills of
management..

VIZIES
• In coke language vizies means refrigerator. A container
to cool the containers. In jammu city there are 5 types
of vizies . These are:-
• 7 caser
• 9 caser
• 15 caser
• 20 caser
• 30 caser .
• Each vizi is provided to shopkeepers keeping in view its
market area consumption... More consumption bigger
the size of vizi..

• 3.9.2: WEAKNESSES
•
• LOW EXPORT LEVELS: The brands produced by the company are brands produced
worldwide thereby making the export levels very low. In India, there exists a major
controversy concerning pesticides and other harmful chemicals in bottled products
including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental
organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-
Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos-pesticides
that can contribute to cancer and a breakdown of the immune system.
Therefore, people abroad, are apprehensive about Coca-Cola products from India.
•
• 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.
•
• 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
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. 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:

Packaging details
Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, ml and 300 ml returnable glass bottles; 500+100 ml, 1.5
and 2 litre PET bottles
300 ml 330 ml 200 ml 600 ml 2lt

Diet Coke: 330 ml can and 500 ml PET bottle

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

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

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

• 5.3: OBJECTIVE OF THE STUDY
• The main objective of this study lies in
studying and understanding the present offers
and schemes providing by the Coca-Cola and
how much retailer satisfying with present
offers.

• CHAPTER 6 METHODOLOGY______________________
•
• 6.1 RESEARCH METHODOLOGY
•
• This research involved a study, which was descriptive as well as explorative in nature it
basically aims at gathering data about how the coca-cola scheme playing in the mind of
shopkeepers & consumer.
•
•
• METHODS OF DATA COLLECTION:
•
• THERE ARE TWO TYPES OF DATA
•
• 1. Primary data
• 2. Secondary data
•
•
• 1) Primary data collection: Primary data can be collected by three methods.
•
• Observation
• Experiment
• Surveys

• Sampling plan: sampling plan consists of
•
• Sampling unit: The retailer of Grocery shop, general store, provision store, tea stall
and dhaba walas was selected from different places of jammu city.
•
• Sampling size: 150 Outlets. Per MD.
•
• Sampling procedure: Simple random sampling procedure was followed
•
• Sampling method: Data were collected by retailer survey. The retailers are directly
contacted and interviewed at their retail counter.
•
• 2) Secondary data collection: As secondary data were not available with
shopkeepers as well as stockist, so these were collected from company records.

• SURVEY ANALYSIS
•
• THE SURVEY WAS CONDUCTED IN DIFFERENT LOCATION OF VIZAG. A TOTAL
SURVEY OF 200 OUTLETS WAS CONDUCTED.
•
• OBSERVATION
•
• 1. I visited about 200 outlets.
•
• 2. Out of 200 shops covered in different areas, I focused on covering different
shops according to location, so that I can know where coca-cola products have
the best penetration. Among the shop covered, 17% were on the chauraha, 35%
were on the main road, 28% in the market and 20% were near a residential area.
•
• 3. I assigned the various shops covered into different categories. The various
categories covered were Grocery, Confectionary, Bakery, Juice Shops, Ice Cream
parlors, Restaurant, Food Points, P.C.O, Dairy, Pan Shops and Tea stalls.

• 6.3 FINDINGS
•
• Which type of promotions do you like?
•
• Volume Linked Schemes
• Cash Discount Schemes
• Most of the shopkeepers showed their willingness with the cash discounted schemes . They
calculate the schemes provided to them by company in monetary transaction…after calculating
they decide whether are going to take the product or not.
•
• INTERPRTATION:-
•
• As per the above question most of the retailers like cash discounts on their each purchase from the
company. In my survey most of the outlets are groceries so their sale is limited when there is no
need of more volume they don’t want other two schemes.
• So as per my study if company want to launch scheme better it should be a cash
discount type.

Project report of coca cola summer internship

Project report of coca cola summer internship

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