71
A PROJECT ON “A STUDY ON HORIZONTAL EXPANSION OF RETAIL STORES AND CONSUMERS PREFERENCES FOR COCA COLA” SUBMITTED TOWARDS FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (Approved by AICTE, Govt. of India) (Equivalent to MBA) ACADEMIC SESSION 2011-2013 Under the Guidance of : Submitted By : Prof. Dr. Madhavi Pandya MANASH BHUSHAN BISWAS Marketing & Communication ROLL NO. – M6--28 SSIM SIVA SIVANI INSTITUTE OF MANAGEMENT NH—7, KOMPALLY, SECUNDERABAD – 500014 ANDRA PRADESH

Coca Cola Industry internship Report

Embed Size (px)

Citation preview

Page 1: Coca Cola Industry internship Report

A PROJECT ON“A STUDY ON HORIZONTAL EXPANSION OF RETAIL STORES

AND CONSUMERS PREFERENCES FOR COCA COLA”

SUBMITTED TOWARDSFULFILLMENT

OFPOST GRADUATE DIPLOMA IN MANAGEMENT

(Approved by AICTE, Govt. of India)(Equivalent to MBA)ACADEMIC SESSION

2011-2013

Under the Guidance of: Submitted By:Prof. Dr. Madhavi Pandya MANASH BHUSHAN BISWASMarketing & Communication ROLL NO. – M6--28SSIM

SIVA SIVANI INSTITUTE OF MANAGEMENT

NH—7, KOMPALLY, SECUNDERABAD – 500014

ANDRA PRADESH

INDIA

TEL: +91-40-27165450/54, 65457236/37, FAX: +91-40-27165452

Page 2: Coca Cola Industry internship Report

WEBSITE: www.ssim.ac.in

ACKNOWLEDGEMENTS

I am highly indebted to my project mentor Prof. Dr.

Madhavi Pandya for his continuous support, supervision

motivation and guidance throughout the tenure of my project in

spite of his hectic schedule who truly remained driving spirit in

my project and her experience gave me the light in handling

research project and helped me in clarifying the abstruse

concepts, requiring knowledge and perception, handling critical

situations and in understanding the objective of my work.

I would also like to express my heartiest thanks to all the

respondents who took time for answering my questions.

MANASH BHUSHAN BISWAS

Page 3: Coca Cola Industry internship Report

PREFACE

Market provides a key to gain actual success only to those brands which match best to the current environment i.e. which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide opportunity plus sufficient amount of products for sales in the coming next financial year. This report introduces study of consumer’s preferences for COCA COLA. After going through a detail analysis of market behavior and future prospect, it may also provide an opportunity to COCA COLA to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of KOLKATA, BARRACKPORE AND KHARDAH. The study report will also provide an opportunity to its market potential business areas, products& services are to be offered by the company to the customers. Marketing Division of COCA COLA has to keep in mind various factors specially while preparing plan for marketing its product or services. Detail description along with analysis of surveyed data is being presented in this report.

Page 4: Coca Cola Industry internship Report

TABLE OF CONTENTS

Introduction……………………………………………………………………………………......5Executive summary………………………………………………………………………………..5Company Profile………………………….…………………………………………………..…...6History…………………………………………………………………………………….............8Organizations and Organizational Effectiveness…………………….…………………………....9Stakeholders, Managers, and Ethics…………………………………...………………………...10Organizational Design…………………………………………………………………………...11Designing Organizational Structure: Authority & Control…………………………………..…..12Designing Organizational Structure: Specialization & Coordination……………………………13Managing in a Changing Global Environment…………………………………………………..13Organizational Design & Strategy……………………………………………………………….14Creating & Managing Organizational Culture…………………………………………………...15Organizational Technology………………………………………………………………………16Organizational Transformations…………………………………………………………………16Decision Making…………………………………………………………………………………17Mission, Vision and Values……………………………………………………………………...18Product Profile…………………………………………………………………………………...20Quality control…………………………………………………………………………………...23SWOT Analysis………………………………………………………………………………….27Market Analysis……………………………………………………………………………........30

Marketing Objectives…………………………………………………………………………….34Introduction to Research Work…………………………………………………………………..43Objective of the Study…………………………………………………………………………...43Research Methodology…………………………………………………………………………..43Implementation and Control……………………………………………………………………..43Suggestion ……………………………………………………………………………………….45Conclusion……………………………………………………………………………………….46Limitation of the Study…………………………………………………………………………..46

Page 5: Coca Cola Industry internship Report

INTRODUCTION

The Coca-Cola Company is a beverage company, manufacturer, distributor, and marketer

of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship

product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola

formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola

Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more

than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The

company operates a franchised distribution system dating from 1889 where The Coca-Cola

Company only produces syrup concentrate which is then sold to various bottlers throughout the

world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta,

Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index

and the Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent.

 

EXECUTIVE SUMMARY The objective of the project is to know the consumers preferences for Cola Drinks, to study the

Market Potential of COCA COLA and the report contains a brief introduction of Coca Cola. The

company COCA COLA has interests in various sectors and they provide consistent quality

products to meet our costumer’s requirement worldwide. This report clearly mentions objective

of the study and the research methodology utilized. Both primary data and secondary data. The

data collection method used is structured no disguised questionnaire in which the types of

questions used are open ended, multiple-choice and close ended. Some of the research areas are

CHIRIAMORE, BARRACKPORE AND KHARDAH. This project reveals one of the important findings

like more and more displays of the window hiring and can be given to the retail outlets as it has

been said that “JItna Dikhega Utna Bikega”. To increase its consumption, more schemes like

‘Seasonal Schemes’ and other schemes can be given to the consumers. A detailed survey of the

consumers was carried to find out their preferences for COCACOLA. The details of the

Page 6: Coca Cola Industry internship Report

methodology are stated below. Areas are KOLKATA, BARRACKPORE AND KHARDAH research

design: Exploratory and descriptive. Sources of information are primary and secondary data.

Data collection method structured no designed questionnaire. Types of questions used open

ended, multiple choice and close ended. Sampling methods random sampling. In this study I

found that most of the consumers prefer COCA COLA as their 1st preference and then PEPSI.

COMP ANY PROFILE Douglas N. Daft was elected chairman, Board of Directors, and chief executive officer of The

Coca-Cola Company on February 17, 2000. Mr. Daft is the 11th chairman of the Board in the

history of the Company. Mr. Daft, 60, joined the Company in 1969 as planning officer in the

Sydney, Australia office. He held positions of increasing responsibilities throughout Asia and in

1982 was named vice president of Coca-Cola Far East Ltd. In December 1988, Mr. Daft was

named president of the North Pacific Division and president of Coca-Cola (Japan) Co., Ltd. He

moved to the Company's Atlanta headquarters in 1991 to assume the responsibility of president

of the Pacific Group and in 1999 his responsibilities were expanded to include the Company's

Africa Group, and Schweppes Beverage Division, as well as the Middle and Far East Group. Mr.

Daft was elected president and chief operating officer of The Coca - Cola Company in December

1999. He serves on the boards of Sun Trust Banks, the Boys& Girls Clubs of America, Catalyst,

the CERGE-EI Foundation(Center for Economic Research and Graduate Education - Economics

Institute) in the Czech Republic, the Lauder Institute for Management and International Studies

at the University of Pennsylvania, the Prince of Wales International Business Leaders Forum, the

Grocery Manufacturers of America, the British - American Chamber of Commerce, the G100, the

Woodruff Arts Center, the Commerce Club, and the McGraw-Hill Companies. Mr. Daft is a

trustee of Emory University, the American Assembly and the Center for Strategic & International

Studies. He is also a member of The Trilateral Commission, the Business Council, and the

Business Round table. Mr. Daft received a bachelor's degree in mathematics from the University

of New England and a post-12 Graduate degree in administration from the University of New

Page 7: Coca Cola Industry internship Report

South Wales. He holds an honorary doctorate in international law from Thunderbird, the

American Graduate School of International Management

IN INDIAThe Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India

Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy

to foreign investments in 1991. Since then its operations have grown rapidly through a model

that supports bottling operations, both company owned as well as locally owned and includes

over 7,000 Indian distributors and more than 1.3 million retailers. Today, our brands are the

leading brands in most beverage segments. The Coca-Cola Company’s brands in India include

Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza

Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and Nestea Iced tea, the

Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients).

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola

Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and

beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,

Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola

Company, who are authorized to prepare, package, sell and distribute beverages under certain

specified trademarks of The Coca-Cola Company; and an extensive distribution system

comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells

concentrate and beverage bases to authorized bottlers who are authorized to use these to

produce our portfolio of beverages. These authorized bottlers independently develop local

markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and

numerous other businesses. In turn, these customers make our beverages available to

consumers across India.

The Coca-Cola Company has invested nearly USD 1.1 billion in its operations in India since its re-

entry back into India in 1992. The Coca-Cola system in India directly employs over 25,000 people

including those on contract. The system has created indirect employment for more than

1,50,000 people in related industries through its vast procurement, supply and distribution

Page 8: Coca Cola Industry internship Report

system. We strive to ensure that our work environment is safe and inclusive and that there are

plentiful opportunities for our people in India and across the world.

The beverage industry is a major driver of economic growth. A National Council of Applied

Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this

industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage

is increased, the direct and indirect effect on the economy will be twice of that. In terms of

employment, the NCAER study notes that “an extra production of 1000 cases generates an extra

employment of 410 man days.”

As a Company, our products are an integral part of the micro economy particularly in small

towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is

amongst the largest domestic buyers of certain agricultural products.

As an industry which has strong backward and forward linkages, our operations catalysis

growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial

and agricultural products. Our operations also lead to incremental growth for enterprises

engaged in post production activities like merchandising, marketing and sales. In addition, we

share best practices and technological advancements with our suppliers, vendors and allied

industries which often lead to improvement in the overall standards of quality across industries.

The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition

entails that our Company’s business should refresh the market; enrich the workplace; protect

and preserve the environment; and strengthen the community. We leverage our unique

strengths to actively support and respond to local needs -- be it the need for education, health,

water or nutrition. We have used our distribution network for disaster relief, our marketing

prowess to raise awareness on issues such as PET recycling, and our presence in communities to

improve access to education and potable water. The Coca-Cola India Foundation is now taking

forward in the community at large, projects and programs of social relevance to carry forward

the message of inclusive growth and development.

Page 9: Coca Cola Industry internship Report

BENGAL BEVERAGES PRIVATE LTD.

Bengal Beverages Pvt. Ltd. is among India’s leading beverages manufacturing

companies (Authorized Bottlers of Coca Coca Company), with consolidated

revenues of around Rs.250 crores (USD 50 million) in 2010-11. It is one of the

leading beverage industries in the soft drinks segment in West Bengal. The

Company's over 600 employees are guided by the vision of “Consumer

Satisfaction is our Asset.” Its key products include Thums Up, Sprite, Coca-Cola,

Fanta, Limca, Maaza, Kinley Soda & Kinley Water.

Bengal Beverages started its operations in the year of 1984. Its sales jurisdiction

is spread over approximately 80% area of West Bengal (Hooghly, Howrah, Part

of Kolkata (North), Murshidabad, Burdwan, Midnapore, 24 Parganas North,

Nadia, etc.) The Factory and Administrative office are located at Durgapur

Expressway, P.O- Dankuni Coal Complex, P.S. – Dankuni, Distt. – Hooghly, PIN –

712 310.

HISTORY OF COLA

The cola industry has phenomenal possibilities for rocketing profit growth in spite of the sign of

relief heaved by the manufacture at the abrupt sensational termination of coca cola monopoly

the tastes of cola is by no means extinguished the coca. Cola have a status symbol to it...,

generated by the sub standard, penetrated, advertising and extensive distribution network.

Total soft drink segment is growing at the rate of 10% per year still if international standard

area considered the per capita consumption of three serving in rock bottom, less than even our

neighbors’ Pakistan and Bangladesh, where it is four more as much. So with kind of a market

potential coke entered in India in 1991 after the permissions of setting up Britico Food company

to coke was granted by the government in Pune in 1992the plant was established for is

deducted then the bottle are taken out of the line and Cleaned again or rejected. The most

Page 10: Coca Cola Industry internship Report

important step is the mixing of drink concentrate dissolved in the soft water the sugar syrup at

the same time. Carbon dioxide is passed in the drink to produce a fizz. After the crowing of the

bottle the crown contains the manufacturing data batch number and Time

ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS

What allows an organization to continue to operate for over 125 years, and along the way,

become one of the most globally recognizable brand names? The ability to adapt and find new

markets has helped Coca-Cola become an icon of the American culture. Coca-Cola was invented

in 1885 and since The Coca-Cola Company’s incorporation in 1892; a strong focus on growth and

marketing has existed. Besides traditional advertisements in the local newspaper, the

company’s founder, Asa Candler, distributed thousands of coupons for free glasses of Coca-Cola

so that many more people would be inclined to taste the product. He also distributed countless

souvenirs that depicted the Coca-Cola trademark logo. By 1900, the organization, already, had

operations in the United States and Canada. This focus on aggressive marketing is, still, the

cornerstone for The Coca-Cola Company’s strategy and culture. The Coca-Cola Company was

eager to take advantage of new markets, and expansion efforts quickly led to Cuba, Puerto Rico,

Guam, and the Philippines before long, Coca-Cola was being sold in Europe. When The United

States entered World War II, Coca-Cola was being sold to both sides. The Coca-Cola Company

turned what many would view as a threat, into an enormous opportunity. In 1941, the

company’s president, Robert Woodruff made an order to provide American troops with Coca-

Cola, regardless of where they were, and what it cost to the company. During the war, 64

bottling plants were set up in Europe and the Pacific. This not only allowed American troops to

acquire a taste for the drink, but it left Coca-Cola with a solid foundation to greatly expand its

operations overseas. Over time, The Coca-Cola Company has remained adamant about staying

in the non-alcoholic beverage industry. Besides soft drinks, The Coca-Cola Company sells energy

drinks, juice drinks, sports drinks, tea, and water. The current focus of The Coca-Cola Company is

still that of growth. The current objective of the organization “is to use our formidable assets-

brands, financial strength, unrivalled distribution system, global reach, and a strong

Page 11: Coca Cola Industry internship Report

commitment by our management and employees worldwide-to achieve long-term sustainable

growth”

The key inputs for production are the raw materials used in the beverages. The company uses

different types of sweeteners depending on where the concentrate is being produced. Water is

one of the main ingredients used in every beverage. Since the organization greatly focuses on

marketing, human capital is an important asset to the company as well. Without its employees’

knowledge and abilities, The Coca-Cola Company would not be nearly as successful. The secret

formula for Coca-Cola is another key input for the company. The Coca-Cola Company does not

actually produce soda. They produce the concentrate or syrup, which is then sent to distributors.

Distributors add carbonated water and any other ingredient necessary to create the final

product. The production process of Coca-Cola is a secret; however, it mainly consists of adding

the correct amount of ingredients, and mixing them. The process to create each beverage is

extremely mechanized in order to achieve quick and efficient production. The outputs of The

Coca-Cola Company are the syrups and concentrates of its beverages. The Coca-Cola Company

faces a number of challenges, many of which stem from the fact that the organization operates

on such a large level. Each market has its own trends and demands. Consumers in some markets

have become more heath conscious. In order to react to this trend, many diet and low-calorie

drinks have been created. The Coca-Cola Company is always trying to find ways to be innovate.

Due to the anti-carbohydrate trends created by the Atkins diet, Coca-Cola C2 was introduced. It

is supposed to have the same taste as Coca-Cola, but contain half the carbohydrates. Another

problem The Coca-Cola Company faces is derived from the social and political differences of

each market. For example, different countries have different laws. Most developing countries

have more relaxed pollution requirements. In some countries, bribes of government officials are

considered normal and expected. While it is company policy that The Coca-Cola Company will

follow the laws of every country that it operates in, it still has strong criticism from other parts

of the world for its actions. The company has recently been the subject of strong criticism the

company’s bottling plants in Colombia are alleged to have killed workers who were attempting

to unionize. Even though the bottling plants are independently owned and operated, and

Page 12: Coca Cola Industry internship Report

nothing has happened legally to the bottling plants in Colombia, The Coca-Cola Company has

been facing strong criticism for it in the United States. The Coca-Cola Company’s structure has

characteristics of both organic and mechanistic models. The organization has a more centralized

structure, however in recent years there has been a movement towards decentralization. A

more in-depth analysis of the organization’s structure will be discussed later. The Coca-Cola

Company measures success in many ways. The Coca-Cola Company believes that if they analyze

sales based on volume growth, it is an indicator of trends at the consumer level. The company

obviously looks at profit as a way to measure success. Recently, The Coca-Cola Company has

been focused on being a more responsible global citizen. The company has over 70 clean-water

projects in countries all across the globe.

STAKEHOLDERS, MANAGERS, AND ETHICS

The stakeholders for The Coca-Cola Company as stated in the company’s Corporate

Responsibility Review are:

a. Shareowners

b. Employees

c. Bottling partners

d. Governmental agencies

e. Suppliers

f. Retail customers

g. Consumers

h. Local Communities

i. NGOs

Because each group of stakeholders has a different goal, conflicts arise. The shareowners are

concerned with earning a profit, while local communities care deeply about environmental

issues and labor standards. Suppliers want to charge as much as possible to create more

revenues, and The Coca-Cola Company wants to get the lowest prices to decrease costs.

Page 13: Coca Cola Industry internship Report

Management wants to keep labor costs down, while employees want raises and increased

benefits. The organization’s divisional managers run company operations in a general region of

the globe. The functions of each vice president are divided into functions such as human

resources, innovation/research and development, marketing, and public affairs and

communication. The two functions most critical in taking advantage of the company’s

competitive advantages are marketing and innovation/research and development. As stated

time and time again, the organization tries to capitalize on its brand name as much as possible,

which is why the marketing function is so important to the company. The Innovation/research

and development department must come up with the products that the marketing function

demands. The majority of the top level managers at The Coca-Cola Company have worked in

many different regions and areas of the company. Many have worked for or ran the bottling

companies that partner with the organization. The fact that members of the top management

team have well rounded backgrounds allow for problems to be looked at from multiple angles.

ORGANIZATIONAL DESIGN

The Coca-Cola Company realizes that it needs to be able to meet the ever changing demands of

its customers. This is why the company pushed towards decentralization in the nineties, and

even more so recently. The organization has two operating groups called Bottling Investments

and Corporate. There are also operating groups divided by different regions such as: Africa,

Eurasia, European Union, Latin America, North America, and Pacific. Each of these divisions is

again divided into geographic regions. By allowing decisions to be made on a more local level,

the organization can quickly respond to changing market demands, and higher-level

management can focus more on long-term planning. Certain divisions of the company, such as

finance, human resources, innovation, marketing, and strategy and planning are centrally

located within the corporate division of the company. Some of these functions take place at

lower levels in each of the regions of the company; however, most decisions are made at the top

of the hierarchy. For example, in 2011 the decision to sponsor the World Cup was done at the

corporate level. Corporate headquarters, however, allowed the local divisions to make the

advertising decisions. This allowed each division to specifically design commercials and ads that

Page 14: Coca Cola Industry internship Report

would appeal to the local market. When Neville Isdell took over as CEO and chairmen of The

Coca-Cola Company in 2004, he began to using more complex integrating mechanisms. In order

to deal with organization’s extremely low growth rate, Isdell used teams of top managers to

create solutions to the organization’s most pressing problems. Face-to-face meetings were held

regularly at the local levels so employees could remain informed. Besides the use of teams and

meetings, the intranet was overhauled to provide a source of real-time sharing of information.

The use of complex integrating mechanisms is important in such a tall and wide organization. It

is important that each function of the company is able to share up-to-date information quickly

with each other. The organization seems to be doing an excellent job of balancing

standardization and mutual adjustment. The Code of Conduct for the organization is guidebook

for how every employee should act. Should an employee act improperly, they are subject to

disciplinary actions. Due to the changes implemented by Isdell, mutual adjustment has started

to play a larger role in the organization. Employees feel more engaged and turnover has been

reduced. Isdell’s changes have led to increased growth rates for the organization, and return on

equity for stockholders went from a negative return to a 20percent return. This balance is

essential, because it allows employees some flexibility, but also gives the organization some

predictability. The Coca-Cola Company’s structure is a hybrid of both mechanistic and organic

models. The focal point of The Coca-Cola Company is on responsiveness. The complex

integrating mechanisms previously discussed are characteristic of an organic structure. The

surveys and interviews used by the company allowed information to flow from the bottom-up,

and the intranet allows for information to be exchanged laterally. The surveys have also caused

The Coca-Cola Company to pursue simplification and standardization. Centralization and high

standardization are associated with a mechanistic structure. The blending of both types of

structures seems to be ideal for the organization. Flexibility is essential when trying to appeal to

such a vast number of independent markets, however, high standardization is important to

remain efficient in production. The use of complex integrating mechanisms allows for easier

coordination for the global company. Centralization keeps organizational choices aligned with

organizational goals. Now that information in the company is flowing in every direction, upper-

management will have access to information more quickly, adding to the organization’s

Page 15: Coca Cola Industry internship Report

flexibility and responsiveness. The recent shift towards a more decentralized and organic

structure corresponds with the uncertainty of the organization’s environment  

DESIGNING ORGANIZATIONAL STRUCTURE: AUTHORITY &CONTROL

The Coca-Cola Company currently employs approximately 94,800 employees. According to a

general organizational chart obtained from the company’s website, there are more than

5hierarchical levels at the corporate level. For example: the head of the Canadian division

reports to the president and COO of the North American Group. That president reports to the

CFO, who reports to the Office of the General Counsel. The General Counsel then reports to the

CEO. It is fair to assume that there are at least a few more steps in the hierarchy at the local

level. Due to its tall structure, the organization has experienced communication problems. One

of the problems discovered through a survey, was that the people and the company lacked clear

goals. Tall hierarchies also cause motivation problems, which is why the organization is

attempting to get employees more engaged. The increased usefulness of the company’s intranet

will greatly increase the communication between every level of employees, and allow upper

management to effectively communicate to the front line employees. Based on information

from Report 2006 this span of control seems somewhat slim for the CEO of such a large

organization. The CEO is also a member of the Senior Leadership Team. This team consists of

each head of the eight operating groups aforementioned, and also has other top executives in

areas like innovation and technology and marketing. Although there are only six people that

answer directly to the CEO, the CEO is able to receive input from a wide variety of divisions

because of this leadership team. Since the team is comprised of members from various divisions,

the CEO is able to obtain a wide variety of information. The move to decentralization has caused

structural changes for The Coca-Cola Company. New offices have been opened to facilitate

decisions being made closer to the local markets. The organization has also undergone

centralization of some of the company’s departments. In 2006, the Bottling Investments division

was created to “establish internal organization for our consolidated bottling operations and our

unconsolidated bottling investments.” It appears that the organization is striving for a hybrid

structure, which allows them to have advantages of both mechanistic and organic structures,

while trying to minimize the negative consequences of each. The strategic structural changes

Page 16: Coca Cola Industry internship Report

that the organization has gone through in recent years have created a much needed positive

impact on the company. Sales growth increased and employees are much more satisfied. The

organization is trying to create a more innovative culture by pushing towards decentralization.

DESIGNING ORGANIZATIONAL STRUCTURE: SPECIALIZATION & COORDINATION

The Coca-Cola Company realizes that a divisional structure gives the organization the best

opportunity to react to the changes in its uncertain environment, but also allow it to maintain a

level of stability. The multidivisional structure is beneficial for the organization for a variety of

reasons. The division based on geographic region allows certain aspects of the company’s

operations to be tailored to the individual market. One advertising campaign or slogan may not

be appropriate for another market, so decisions about specific ads are made closer to the

individual markets. Multidivisional structures allow divisional managers to handle daily

operations while corporate managers are free to focus on long-term planning. There are also

problems associated with this type of structure. If the company creates divisional competition,

coordination may decrease because each division wants to have an advantage over everyone

else. Communication problems may also exist because information can become distorted when

it has to travel up and down tall hierarchies. A multidivisional matrix structure may be better

suited for The Coca-Cola Company. This would increase coordination between corporate and

divisional levels, and managers at each level would work together to create solutions to

problems. While such a structure may be too complex for a global organization, the company

may want to look into it.

MANAGING IN A CHANGING GLOBAL ENVIRONMENT

Due to its tremendous global presence, The Coca-Cola Company operates in an extremely

uncertain environment. Increased competition from global and local companies has led to

competition over the most important resource: customers. The Coca-Cola Company must not

only compete for customers, but also raw materials needed for each product. In some parts of

the world, clean water is becoming increasingly hard to come by. The Coca-Cola Company has

only one or two suppliers for some of its raw materials. For example, they view The NutraSweet

Page 17: Coca Cola Industry internship Report

Company as one of only two viable sources for the ingredient aspartame .The Coca-Cola

Company is at a strong disadvantage if they cannot decrease their reliance on a small number of

suppliers. If relations with suppliers deteriorate, or if the suppliers go bankrupt, it would have

dire consequences for The Coca-Cola Company.

The Coca-Cola Company must also compete to get the best employees possible. The production

of the beverages does not require skilled labor, The Coca-Cola Company’s top choices for the

open CEO position decided not to join the company because they did not like the actions of the

Board of Directors. Due to the organization’s high credit rating, the company has the ability to

raise funds at a lower cost. This allows the organization the opportunity to finance operations

such as expansion through the issuance of debt. This may be necessary if The Coca-Cola

Company looks to expand into new markets, or purchase new brands. The environment in which

The Coca-Cola Company operates in is extremely dynamic. The environment is difficult to predict

and control due to the global nature of the operations. The Coca-Cola Company faces the threat

of reduced production or disruption in distribution if there is a problem in a market. Another

reason the company’s environment is tremendously dynamic is due to the nature of their raw

materials. Some of their key raw materials are dependent on specific climates. Climate changes

may impact the price of the materials they need to obtain and, in turn, affect the cost of

production. The strength and interconnectedness of the general forces that The Coca-Cola

Company must deal with make the environment extremely complex. Recently in the United

States, two forces have started to become inter-woven: cultural/social values and

political/environmental forces. Many American companies are now being lambasted if they do

not try to be more environmentally friendly, and The Coca- Cola Company is no different. The

company has received plenty of criticism for its operations in India, with claims that they cause a

great deal of pollution and have damaged local water supplies. The Coca-Cola Company uses a

wide variety of techniques to manage relationships with its stakeholders, the most useful tool

being strategic alliances. A former CEO of the organization claimed that 100 percent of its

revenues came from strategic alliances. The company uses exclusive contracts with its bottling

partners and other customers as well. In1999, the organization signed a ten-year deal with

Burger King to be the restaurants only supplier of beverages. Even though PepsiCo was willing to

Page 18: Coca Cola Industry internship Report

give Wendy’s a much better deal, the restaurant signed a ten-year deal with The Coca-Cola

Company. This example show show powerful the Coca-Cola© brand name really is.

The Coca-Cola Company has done an excellent job managing some aspects of the environment,

but done a poor job at managing other parts of the environment. The negative publicity

received from its operations in India and the actions of its bottling partner in Colombia has led

to boycotts of Coca-Cola products on some campuses. While this is clearly bad for the company,

the average consumer is completely unaware of these allegations. This means that The Coca-

Cola Company is doing a decent job of damage control. While the company has not had any

trouble with suppliers lately, the future is always uncertain. It does not seem like the company is

not actively trying to secure supplies, which is why vertical integration was recommended.

ORGANIZATIONAL DESIGN & STRATEGY

The core competences that give the organization its best competitive advantages are its strong

brand name and its network of bottlers and distributors. Along with its marketing capabilities

and broad portfolio of products, The Coca-Cola Company has core competences which are

extremely difficult, if not impossible to duplicate. The strong Coca-Cola brand name gives the

company a great deal of bargaining power and leverage. In 1999, PepsiCo and The Coca-Cola

Company were fighting to become the supplier of beverages for the Wendy’s restaurant chain.

Wendy’s opted to partner with The Coca-Cola Company even though PepsiCo was offering much

more money. The brand name recognition that the company enjoys is a powerful bargaining

tool. The Coca-Cola name even has an influence on consumer tastes. When The Coca-Cola

Company was looking to launch Diet Coke, they performed some blind taste tests with

consumers. The consumers preferred a glass labeled Diet Coke over a glass labeled Tab by 12

percent, even though the liquids in each glass were identical. It has taken the organization over

120 years to build such a strong brand preference, and this cannot be imitated by competitors.

The relationships that the organization has with its distributors are another competitive

advantage that cannot easily be imitated. The contracts and relationships between the two

groups create symbiotic interdependencies, which mean that the success of both companies has

a direct impact on each other. The Coca-Cola Company agrees not to sell to other parties in the

Page 19: Coca Cola Industry internship Report

local market, and the bottler agrees to only purchase the syrup and concentrate from the

company’s authorized dealers. The Coca-Cola Company at times provides the retailers and

distributors with promotions, and capital at times. Because the organization does not have to

worry about the distribution in the local markets, it allows the company to focus on more

important issues. The Coca-Cola Company’s business-level strategy is one of differentiation. This

is evident in the previous example of consumers preferring identical beverages just because the

Coke brand name was attached. They have been successful pursuing differentiation because the

focus of the company has always been on marketing. The Coca-Cola Company is “known for

innovative marketing that constantly promotes their brand names and protects their domains

from competitors. The hybrid structure of The Coca-Cola Company is ideal for its differentiation

strategy. The centralization of the marketing and innovation functions allows the company to

retain control over development, marketing and production. By performing extensive market

research and creating more local offices, the company is always looking for new ways to serve

new customers. The use of complex integrating mechanisms allows coordination between all

levels and divisions of the company.

CREATING & MANAGING ORGANIZATIONAL CULTURE

The culture of The Coca-Cola organization is mission driven; focused on refreshing the mind,

inspiring optimism, and making a difference (Thecocacolacompany.com). The rich history of the

organization has allowed the company to compile hundreds of stories of consumers and

employees. These stories share real life examples of what Coca-Cola means to their consumers

and give employees a sense of pride to be a part of something that means so much for so many

people. They also inspire new employees to make appositive impact on the world. Stories are so

important to The Coca-Cola Company that they created a museum in Las Vegas that focuses on

the stories of customers. After visitors heard others’ stories, they could record their own, which

the company could use in the future. As stated previously, the company has been trying to

change the culture by allowing employees to essentially shape and reform the goals of The

Page 20: Coca Cola Industry internship Report

Coca-Cola Company (Fox,2007). The positive stories that the company chooses to focus on

provide a foundation to encourage employees to be not only model workers, but model citizens.

ORGANIZATIONAL TECHNOLOGY

Currently, output processes are the greatest source of uncertainty for the organization. As

previously stated, The Coca-Cola Company does not produce the end product. Distributors and

bottlers mix other ingredients (mainly carbonated water) with syrups and concentrates and then

sell the products. The Coca-Cola brand name is on the end product, regardless of who bottles it.

The company must keep pressure on the bottlers to maintain high quality outputs, or it could

have negative consequences for The Coca-Cola Company. There exists very little information

about the production of the Coca-Cola syrup. Even at The World of Coca-Cola, a museum for the

company, there is no mention of how the syrup is produced. The production of Dasani, the

company’s bottled water, is extremely mechanized, and it is fair to assume that the production

of every Coca-Cola product is the same. This mass production and high mechanization leads to a

high level of technical complexity. Classification Level of Technical Complexity

a. Small-Batch and Unit Production Low to Medium

b. Large-Batch and Mass Production Medium to High Continuous Process or Flow Production

High The typical structure of a manufacturing company that uses mass production is a

mechanistic structure, in which efficient production is the desired end. The Coca-Cola Company’s

structure is unique in that it has a lot of the characteristics of an organic structure. This is due to

its focus on marketing and local appeal. The structural mismatch means that production in the

organization may not be as efficient as possible; however, the benefits of the organization’s

structure outweigh the consequences

ORGANIZATIONAL TRANSFORMATIONS

The Coca-Cola Company was founded in 1888 to take advantage of the already popular Coca-

Cola name. Of the four life cycle stages (birth, growth, decline, death), after 120 years, the

company remains in the growth stage because the company’s value creation skills continue to

Page 21: Coca Cola Industry internship Report

evolve. The company has faced a variety of internal problems over the years. A constant

struggle in any organization is trying to meet employees’ demands while trying to keep labor

costs low. In 2005, workers went on strike because management wanted to institute a policy

where employees would pay a greater portion of their health benefits. If the organization

experiences any work stoppage, the company may not be able to meet customer demand and

lose out on revenue. Another internal problem within the company is that the board exercises a

great deal of power and influence. As previously stated, the company failed to attract its top

choices for CEO in 2004, and the board has even pulled ads because they thought the

commercials did not fit the company’s image .Uncertainty in the environment has caused many

external problems for the organization, ranging from uncertainty with its suppliers and

distributors to political and societal pressures.. While there was not information regarding policy

changes because of this, many believe that the power of the board will diminish because long

time director Warren Buffet has stepped down. Buffet has been viewed as rather conservative

and also involved himself in the decision making of the organization. As the company has

continued to grow, top managers have pushed operational responsibility and decision making

down to the local levels. This move allows the company to react better to each market, and it

also allows corporate managers to concentrate on strategic and long-term planning. By

allowing lower level managers to become intricately involved in the company’s growth efforts,

Neville Isdell created an environment in which everyone felt responsible for the company’s

performance. He has also promoted employees within the organization, which aligns both the

goals of the managers and the organization. The fifth and final stage of Greiner’s model is

focused on reducing bureaucracy to speed up decision making. In April2007, COO Muhtar Kent

stated that the company is focusing on simplifying the structure to reduce bureaucracy. Theory

postulates that an organization in this stage would be wise to pursue a product team or matrix

structure. Because The Coca-Cola Company only operates in one domain and has over 400

products, the product team structure would be too costly and unrealistic. A matrix structure

would be an idea worth considering; however the organization uses divisions based on

geography, not product. Due to lack of information about the company’s regional structure, it is

Page 22: Coca Cola Industry internship Report

hard to say whether the company should pursue a matrix structure or remain as a

multidivisional structure.

DECISION MAKING

The majority of decisions made by The Coca-Cola Company are done so by using the incremental

method. Each year, the company would analyze results, and then make slight changes in

operations to create better results next year. The company does not just quickly decide to create

a new product, or change operations. Drastic changes take time. Recently, realizing that the

company was in desperate need for a drastic change, Isdell sought to figure out why the

company performance was declining. By starting at the lower levels of the organization to find

solutions, the company was able to make some drastic changes to the company’s culture, how

employees were rewarded, and made efforts to get employees more involved. The changes

brought on by using the unstructured decision making model created much better results for the

company. One of the biggest flaws in the organization is that the board of directors is

responsible for some of the non-programmed decisions made by the company. When The Coca-

Cola Company was seeking to purchase Quaker Oats, the deal was almost finalized, but then

stopped because the board felt the price was too. When decisions are made by the board, it

means they lack confidence in the upper management of the company to make vital decisions.

This is problematic for the company for a few reasons. Because members of the board have so

much money invested in company stock, they want to minimize risk, and thus, are extremely

prone to take fewer chances. The members of the board do not or have not worked for the

company, so they are not close enough to know all the pertinent information required to make

complex decisions.

Page 23: Coca Cola Industry internship Report

MANAGING CONFLICTS, POWER AND POLITICS

Conflicts can be a healthy way for an organization to improve decision making, and create new

ways for looking at problems. Conflicts can also be a significant source of trouble for an

organization when they cause production declines or important decisions cannot be made.

When the organization sought a new CEO in 2004, their top choices turned them down because

the prospects felt that the board had too much power.

This type of conflict can drastically affect the organization’s ability to change and adapt quickly,

a necessity in the company’s extremely uncertain environment. The example also shows that it

can prevent the organization from acquiring important human resources. The marketing

department is the most powerful subunit in the organization. According to the data, “The

marketing department has considerable power because it is the department that can attract

customers – the critical scarce resource.” The heavy emphasis on marketing could prevent the

company from finding ways to become more efficient in production or distribution. The benefits

derived from the power allocated to the marketing function greatly outweigh any negative

consequence. By providing the department with more resources, the company can conduct

greater market research. For example, even though the organization had a diet beverage on the

market, research indicated that by simply using the name Diet Coke, preferences for the same

tasting beverage increased dramatically. Allocating more capital to the department also allows

for each marketing campaign to be tailored to specific markets, making advertisements more

effective. Market research also saves money for the company. If consumer data shows the

company that one of their ideas would not do well, the company can decide not to produce that

beverage. The strong emphasis on marketing has allowed Coca-Cola to become one of the most

recognized brand names in the world, which gives the company an advantage over its

competition and gives it more bargaining power. One negative consequence of putting such a

great emphasis on marketing research is evidenced in what has become known as one of the

greatest flops in history. Taste tests indicated that consumers would prefer a new, sweeter

version of Coca-Cola, which lead to the creation of New Coke in 1985. The strong brand

attachment that the company worked so hard to achieve with consumers caused a severe

Page 24: Coca Cola Industry internship Report

backlash towards the reformulation of Coca-Cola. This example proves that market research

cannot always be an indicator of what will actually happen.

M I S S I O N , V I S I O N A N D V A L U E S

Following are the mission, vision statements and company’s core values taken from the

company’s official website:-

The world is changing all around us. To continue to thrive as a business over the next ten years

and beyond, we must look ahead, understand the trends and forces that will shape our business

in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow

today. That's what our 2020 Vision is all about. It creates a long-term destination for our

business and provides us with a "Roadmap" for winning together with our bottling partners.

Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company

and serves as the standard against which we weigh our actions and decisions.

A. To refresh the world

B. To inspire moments of optimism and happiness

C. To create value and make a difference.

Page 25: Coca Cola Industry internship Report

Our Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our business by

describing what we need to accomplish in order to continue achieving sustainable, quality

growth.

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

b. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires and needs.

c. Partners: Nurture a winning network of customers and suppliers, together we create mutual,

enduring value.

d. Planet: Be a responsible citizen that makes a difference by helping build and support

sustainable communities.

e. Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.

f. Productivity: Be a highly effective, lean and fast-moving organization

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.

a. Leadership: The courage to shape a better futureb. Collaboration: Leverage collective genius

Page 26: Coca Cola Industry internship Report

c. Integrity: Be reald. Accountability: If it is to be, it's up to mee. Passion: Committed in heart and mindf. Diversity: As inclusive as our brandsg. Quality: What we do, we do well

Focus on the Market

a. Focus on needs of our consumers, customers and franchise partnersb. Get out into the market and listen, observe and learnc. Possess a world viewd. Focus on execution in the marketplace every daye. Be insatiably curious

Work Smart

a. Act with urgencyb. Remain responsive to changec. Have the courage to change course when neededd. Remain constructively discontente. Work efficiently

Act Like Owners

a. Be accountable for our actions and inactionsb. Steward system assets and focus on building valuec. Reward our people for taking risks and finding better ways to solve problemsd. Learn from our outcomes -- what worked and what didn’t

Be the BrandInspire creativity, passion, optimism and fun

Coca-Cola is the best-selling soft drink in most countries. While the Middle East is one of the only

regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless

holds almost 25% market share (to Pepsi's 75%) and had double-digit growth in2003.

Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures

show that both Coca-Cola and Diet Coke now outsell Irn-Bru. In Peru, the native Inca Kola has

been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the

Page 27: Coca Cola Industry internship Report

soft drinks company and buy 50% of its stakes. In Japan, the best selling soft drink is not cola, as

(canned) tea and coffee are more popular.

PRODUCT PROFILE The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its namesake

Coca-Cola beverage. Tab was Coca-Cola's first attempt to develop a diet soft drink, using

saccharin as a sugar substitute. Introduced in 1963, the product is still sold today, however its

sales have dwindled since the introduction of Diet Coke. The Coca-Cola Company also produces

a number of other soft drinks including Fanta and Sprite. Fanta's origins date back to World War

II when Max Keith, who managed Coca-Cola's operations in Germany during the war, wanted to

make money from Nazi Germany but did not want the negative publicity. Keith resorted to

producing a different soft drink, Fanta, which proved to be a hit, and when Coke took over again

after the war, it adopted the Fanta brand as well. The German Fanta Klare Zitrone ("Clear

Lemon Fanta") variety became Sprite, another of the company's bestsellers and its response to 7

Up. During the 1990s, the company responded to the growing consumer interest in healthy

beverages by introducing several new non-carbonated beverage brands. These included Minute

Maid Juices to Go, PowerAde sports beverage, flavored tea Nestea (in a joint venture with

Nestle), Fruitopia fruit drink and Dasani water, among others. In2001, Minute Maid division

launched the Simply Orange brand of juices including orange juice.

INDIAN PRODUCT RANGE

 Flavor Ingredients Pack Product CompanyC o l a Cola Flavor

carbonated watersugar

200Ml.300Ml.500Ml.1 Litre1.5 Litre2 Litre

Coke,Thumsup

Coca-Coal

Page 28: Coca Cola Industry internship Report

Orange Orange Flavor +Carbonated Water+ Sugar

200Ml.300Ml.500Ml.1 Litre1.5 Litre2 Litre

Fanta Coca-Cola

F r u i t J u i c e M a n g o P u l p T r e a t e d w a t e r sugar

250 ML Maaza Coca-Cola

Cloudy Lemon L e m o n F l a v o r + Carbonated Water+ Sugar

200Ml.300Ml.500Ml.1 Litre1.5 Litre2 Litre

Limca Coca-Cola

Clear Lemon Lemon Flavor+ Carbonated Water + Sugar

200Ml.300Ml.500Ml.1 Litre1.5 Litre2 Litre

Sprite Coca-Cola

MAJOR PRODUCTS OF COCA-COLA

Product Name Image

Coke

Sprite

Fanta

Page 29: Coca Cola Industry internship Report

Diet Coke

Minute Maid

Minute Maid Juices

Kinley Drinking Water

Quality Control

Chemical & Microbiological Laboratory

Chemical and Microbiological tests conforming to the BIS norms are being performed in the QC Lab to ensure proper quality of the finished product. The requisite tests are being carried out both in-house and outside and strict quality control monitoring is done to cater the market with the highest level of quality standards.

Page 30: Coca Cola Industry internship Report

Hygiene & Cleanliness

All the plant & machineries are housed in air-conditioned and dust free environment and no compromise is being made for cleanliness and hygienic conditions under strict supervision of the management.

Regular Upkeepment & Maintenance

A stringent sanitation and maintenance program at regular and fixed intervals is carried on under strict supervision of the quality control team. Some of the steps include cleaning and sanitization of the storage tanks, fumigation, etc.

InfrastructureMost of the water borne diseases emanates from unclean water, poor and obsolete technology used to purify the water, unhygienic condition and most importantly the source of water and chances of contamination from surrounding industries and locality.

Treated drinking water coming out of EBPL ensures safe, clean, potable water for human consumption, anytime and every time.

A bottle of water is treated through State-of-the-Art technology comprising of Dual Media Filtration, Activated Carbon Filtration, Reverse Osmosis (R.O), Micron Filtration and through U.V treatment and Ozonisation.

Stretch Blow Formation (SBF)

EBPL has captive production facilities of bottles from best of quality pet pre-forms in our Blowing unit equipped with hi-tech national and international automatic machines. The machines are manned by experienced operators and are supervised by experienced professionals.

Page 31: Coca Cola Industry internship Report

Water Treatment Plant

Two numbers of Water Treatment Plants for treating water through Reverse Osmosis technology are installed. The plants are being operated and managed by the personnel veterans of the industry with rich hands on experience.

Rinsing, Filling & Capping Unit

A fully automatic Rinsing, Filling & Capping machine is installed, wherein the empty bottles are fed in and the rinsing, filling and capping is done automatically to avoid single human contact in the production area.

Jar Filling Section

A separate jar filling section is set up with an automatic Jar Filing Machine, which includes an automatic 6 stage rinsing and washing of the jar before automatic filling of-the water.

Page 32: Coca Cola Industry internship Report

Tips to choose the correct Bottled WaterIS Water is simply one compound, H20, which by itself has no taste. No taste at all and no nutritional value.

Dissolved solids generally only affect appearances and clarity. Look for water in high grade containers (glass or PET plastic) .Try and wash the bottle before drinking, or at least wipe the bottle and specially the cap and the neck area before you gulp the first drop. This will safeguard you from any dust, germs which may get stick on to the bottle from outside and may mix with the water when you open the cap.

Don't take or consume any PDW whose cap and seal is broken or even scratched or if water is leaking from the cap or the bottle.

Beware of spurious fillers who provide cheap PDW. You are never sure from what source is this water coming. Globally the shelf life of PDW is 1 year and in some cases don't have any limitation on the shelf life of bottled water. In India the BIS prescribed shelf life is 6 months.

Before you gulp the first drop. This will safeguard you from any dust, germs which may get stick on to the bottle from outside and may mix with the water when you open the cap.

Corporate Social ResponsibilityAs part of our ongoing Endeavour to provide a better life, care for our environment & our future generation, Corporate stated Philosophy the promoter group is associated with multiple NGOs across the country as part of the group's CSR. Carrying forward the objective, we believe that to bring in the change around us it's necessary to inculcate the change that we want across the organization starting from care for the people, supporting education for the less privileged, basic healthcare and environment at large.

Page 33: Coca Cola Industry internship Report

Water Facts & Trivia

70% of Adult body is water, at birth its 80%.

75% of normal human brain is water

Frozen water is 9% lighter than water, which is why ice floats on water.

Of all the water on earth, only 2.5% is fresh water. Fresh water is either groundwater (0.5%),or readily accessible water in lakes, streams, rivers, etc. (0,01 %).

Over 90% of the world's supply of fresh water is located in Antarctica.

Less than 1 % of the water supply on earth can be used as drinking water.

A person can live about a month without food, but only about a week without water.

A person must consume 2 litres of water daily to live healthily. Humans drink an average of 75,000 litres of water throughout their life.

Globally an average person spends less than 1 % of his or her total personal expenditure for water, wastewater, and water disposal services.

Less than 1 % of the water treated by public water systems is used for drinking and cooking.

It takes 5,680 litres (1,500 gallons) of water to process one barrel of beer.

About 25,700 litres (6,800 gallons) of water is required to grow a day food for a family of four.

SWOT Analysis:

Strengths Weaknesses

Page 34: Coca Cola Industry internship Report

The ultimate objectives of our business strategy are:

To increase volume

Expand our share of worldwide nonalcoholic ready to drink beverages sale

Maximize our long-term cash flows

The Coca Cola system has more than 16 million customers around the world that sells or serves

our products directly to consumers. We keenly focus on enhancing value for these customers

and helping them grow their beverage businesses. We strive to understand each customer’s

business and needs, whether that customer is a sophisticated retailer in a developed market a

kiosk owner in an emerging market.

Aims:

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

Strengths Weaknesses

Page 35: Coca Cola Industry internship Report

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and

satisfy people's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create

mutual, enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and support

sustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall

responsibilities.

Sponsorship

Sports

Coca-Cola sponsored the English Football League from the beginning of the 2004-

05 season (beginning August 2004) to the start of 2010/11 season, when the

Football League found a new sponsor in NPOWER.

Other major sponsorships include NASCAR, the NBA, the PGA Tour, NCAA

Championships, the Olympic Games, the NRL, the FIFA World Cups and the UEFA

Euro.

In the Philippines, it has a team in the Philippine Basketball Association, the PowerAde Tigers.

Television

Page 36: Coca Cola Industry internship Report

The company sponsors the hit Fox singing-competition series American Idol. Coca-

Cola is a sponsor of the nightly talk show on PBS, Charlie Rose in the US.

The Coca-Cola Company   Stock Quote   (NYSE:   KO)

Latest

06/20/11 12:20:50

EST

Change ($) Change (%) High Low

$66.11  0.490  0.750 $66.12 $65.37

Page 37: Coca Cola Industry internship Report

Quotes delayed 15 minutes for NASDAQ, 20 minutes for NYSE and AMEX. Market

Data provided by Interactive Data. Powered and Implemented by  Interactive Data

Manage Solutions.

Page 38: Coca Cola Industry internship Report

INTRODUCTION OF RESEARCHWORK

This report attempts to study the marketing mix keeping in mind the current market situation.

Besides, this report also studies the customer feedback about the COCA COLA. Thus it can be

said that there are two broad goals of the research i.e. TO STUDY THECONSUMERS PREFERENCE

FOR COCA COLA as a whole and other to CREATE A TOP OF MIND AWARENESS OF COCA COLA.

The research work was done through the collection of primary data and secondary data by a

common questionnaire through the market survey technique. Thus; based on our research, we

have made some conclusions and suggestions to make the performance of COCA COLA amongst

all players better.

Consumption of soft drinks has increased tremendously in India. Every age of group like it, now

days it become a household necessary item. In field of marketing many kind of surveys are

conducted by Coca-Cola team time to time.

OBJECTIVE OF THE STUDY To study the consumers preferences for Coca Cola.

To know which brand’s advertisement mostly people have seen.

To know the reason to buy cola drinks.

To know why was the advertisement being noticed by the consumer?

To create a top of mind awareness about COCA COLA by providing the information to consumers

Page 39: Coca Cola Industry internship Report

Scope of Study

1. Scope of this business research study is to know the consumer preference for the company product.

2. To understand the consumer perception about the product

Significance of the StudyTo the Researcher:

•It gave a chance to use the conceptual knowledge in actual environment and prepares the

researcher to use the knowledge for better in his future endeavors.

It helped in the assessing the factors, which influenced the retailers purchasing and selling

products to the consumer from Coca-Cola.

•The study is essential for the researcher in partial fulfillment of PGDM curriculum. The study

gave the researcher the experiences to conduct survey

To the Company:

Cold drinks companies are facing a great competition nowadays. Consumers are very much

aware and curious about safely products, services, brands and other upcoming products. This

study provides an insight to the company that what kind of strategies must be adopted in order

to sell more products to consumers and also satisfying them.

To the Others:

The study gave an insight into various aspects of the Beverage companies, discussed in this

study. One can easily come to know about what is happening in Beverage companies in the

current environment. How they make attraction of Retailers & consumer mind.

Page 40: Coca Cola Industry internship Report

LIMITATIONS OF THE STUDY Some of the respondents refused to fill the questionnaires.

The responses may vary as some people did not want to come up with real answers.

Limitation of time.

The survey is conducted only in few areas of AREAS: KOLKATA(Barrackpore- chiriamore, lalkuti, shantibazaar, nona chandanpukur, barasat roadKhardah;- rahra, B.T road )

Hence the results may vary in other parts of the cities.

Small sample size.

And like any other research the limitation of personal bias of respondents limits the

scope of the study. The findings are based on the survey conducted in the month of

APRIL and MAY; the results may vary in other months

RESEARCH METHODOLOGYA detailed survey of consumers was carried out to find out their preferences for COCACOLA the

details of the methodology are stated below:

Type of Research •Exploratory Research•Descriptive Research

Sampling technique •Convenience sampling

Samplings Areas KOLKATA(Barrackpore- chiriamore, lalkuti, shantibazaar, nona chandanpukur, barasat road

Page 41: Coca Cola Industry internship Report

Khardah;- rahra, B.T road )HYDERABAD

Primary Data Responses through questionnaires

Secondary Data WebsitesSample Size 100

ANAL YSIS

•Focus on availability of products in market.

•Focus on availability of products in outlets.

•Coke products visible for consumers.

•More focus in rural area.

•Regular market vigilance by market developer.

•Distribution of product according locality.

•Extra focus on monopoly outlets.

•Aggressive rural area advertisement.

•Target core brands.

•Satisfy market priorities.

•Focus on villages’.

MAJOR FINDINGS

Page 42: Coca Cola Industry internship Report

Focus on availability of products in market.

“Coca-Cola works on dikega to bikega” philosophy.

This is the main formula of the marketing strategy of each company. So availability of product in

the market is clear. For this reason market developer daily come in market to check their

product availability.

Focus on availability of products in outlets.

There is big difference between the availability of products in market & outlets. Coca-Cola want

that their product displayed in each outlet in market so it is important that the product first

available in market after than it put on outlets.

Focus on visibility of coke product in outlet

The aim of Coca-Cola is that its product should be visible for the customers so company gives

to retailers racks so many display items. Now days the company is giving visicoolers to retailers

for visible their chilled product in market for more sales.

Regular market vigilance by market developer

To know the position of Coke’s product in the market coca-cola appoint some executive those

going market & check availability, visibility of product, take care companies assets, check

visicoolers and talk to shopkeeper & take feedback about their product.

Distribution of product according locality

.Coca-cola Company distributes their schemes according to area. Area or place where soft

drinks sold in a large manner, on those place company gives good schemes to shopkeeper and

retailer. Place like railway station bus stand are consider in this category and place which

Page 43: Coca Cola Industry internship Report

have low selling where company gives small schemes to the shopkeeper.

Extra focus on monopoly outlets

Outlets which only sales coca-cola product and gives good sale to company, Are consider in this

category company gives extra schemes, discount and other gift to these shops and tries to keep

them happy and make long relationship. Problem of these kinds of outlets resolve as soon as

possible

Aggressive advertisement

Coca-cola use the concept of aggressive advertises for sales promotion. Company introduces

different schemes and advertises them with electronic and print media. These advertisements

build Brand image and establish awareness. Brand ambassador play an important role. Brand

ambassador encourage the today youth to trust their instincts, influence them. Successful

advertisement campaigns like “taaza mango, maaza mango” and “bottle mein

aam, maaza hain naam”. Help lot to make market image of maaza. Coca-cola advertising

cam Gains Jo Chaho Ho Jaye. & Life Ho To Asi was very popular & had entered in

youth vocabulary.

Implementation & Control

Page 44: Coca Cola Industry internship Report

Implementation:

Currently, Coca Cola Intl. issuing the following techniques to increase shareholders wealth

maximize customer satisfaction and satisfy the market:

Value Positioning

Value Pricing

Promotional Pricing

Differentiation

o Image

o Product

o Channel Personnel

Market Strategy

o Niche Marketing

o Mass Marketing

Control:

Coca Cola Intl. has controlled sales via:

Geographic Market Organization

They have invested millions in their R&D facility to maintain Product Quality Control.

The overall strategic control is implemented in all plants and factories throughout the

200 countries which Coca Cola proudly serves.

SUGGESTIONS AND FINDINGS On the basis of above study following suggestions can be given:

Page 45: Coca Cola Industry internship Report

Perform a detail demand survey at regular interval to know about the unique

needs and requirements of the customer.

The company should make hindrance free arrangement for its

customers/retailers to make any feedback or suggestions as and when they

feel.

Currently in there is more demand of Coke, the company can extend their

portfolio by introducing new flavors.

It is observed that people less sweet cola drink. So the Coca-Cola Company

should think about bringing innovations in their products for example new

diet flavors or maybe more juices so as to fulfill the need of local market.

Marketing team should try to increase the availability of Coke in rural areas.

The company should focus to bring some more flavors and variety of schemes

rather then bring second and repeat same old one. It is always better to be

first than being better.

The company must be aware of and keep at least the latest knowledge of its primary

competitors in market and try to make perfect anticipated efforts to meet the same

The company should also use time to time some more and new attractive system of word

of mouth advertisement to keep alive the general awareness in the whole market as a

whole.

The company should be always in a position to receive continuous feedback and

suggestions from its customers

The market and try to solve it without any delay to establish its own good credibility..

Page 46: Coca Cola Industry internship Report

The visibility of any product plays an important role in making the customer, aware

about it and is vital for the growth and development of any product.

For their advertisement they can also introduce a brand ambassador, because most of

the consumers remember advertisement because of their brand ambassador.

A strong watch should be kept on distributors also, because in some cases they are found

to be cheating the retailers and affecting the goodwill of the BRAND.

Competition with local drink like- Fruit juice, lemon water, sharbat & lassi.tea

C/s problems.

Irregular supply in small villages.

Find purity Coca-Cola visicoolers.

I find so many OYC, VISI, D-FREEZE & other company freeze in different areas in differ region.

Found so many outlets they want visi coolers from Coca-Cola.

Also found dead & useless coolers.

Some retailers complain about the service &repair of coolers.

CONCLUSION

During the course of the project I realized that the customer willingly answered the closed end

questions.

Page 47: Coca Cola Industry internship Report

From the analysis of the data collected and from the experiences I have reached the following

conclusions: COKE is most popular amongst its users mainly because of its TASTE, BRAND NAME,

INNOVATIVENESS Thus it should focus on good taste so that it can capture the major part of the

market. But most of the consumers prefer THUMSUP as their 1st preference, and then COKE we

comes to the conclusion that visibility affects the sales of project in a very special way. And in

terms of the advertisements lays is lacking behind,. Mostly consumers remember the

advertisement because of the frequency of add and brand ambassadors, creativity. After

acquiring a new customer, there is lot of importance of its retention also. This can be done only

by providing extra flavors and good taste in today’s scenario, customer is the king because he

has got various choices around him. If you are not capable of providing him the desired result he

will definitely switch over to the other provider. Therefore to survive in this cutthroat

competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need

to be always on your toes. We feel that there is cutthroat competition between

COKE,PEPSI,THUMSUP so to be on top of mind of the customers they need to do something

outstanding every time