A SUMMER TRAINING PROJECT REPORT

ON

NEW PRODUCT DEVELOPMENT &

R.E.D. (RIGHT EXECUTION DAILY)

For the partial fulfillment of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Session 2009-2011

Under the supervision of: Submitted by:Mr. DEEP KAMAL KHURANA Ankit SrivastavAREA SALES MANAGER Roll No. 0928370004NAJIBABAD, BIJNOR.

LDC Institute of Technical Studies

1

Soraon, Allahabad.

OUTLINES OF RESEARCH PROJECT REPORT

TITLE Page

CONTENTS

• Certificate. 5

• Declaration. 6

• Preface. 7

• Acknowledgement. 8

Part: I

Chapter-1: Brief insight & mission.

A Brief Insight-The FMCG Industry in India. 10

A Brief Insight-The Beverages Industry in India. 11

Mission. 14

Chapter-2: The Coca-Cola Company.

Introduction. 15

History. 18

Production. 21

Local Competitors. 32

Advertising. 34

Organization Structure of Coca-Cola In India. 40

Coca-Cola Channel Marketing & Profits. 42

Criticism of Coca-Cola Company. 44

2

Chapter-3: Hindustan Coca-Cola Beverages Private Ltd., Najibabad.

Plant Profile. 48

Organization Structure of Sales Department in HCCBPL. 51

Products of company. 52

Quality Assurance. 69

Transportation. 73

Part: II

Chapter-4: New Product Development & Right Execution Daily (RED).

Basis of New Product Development. 78

New Product Development Process. 79

New Product Opportunity. 85

Product Development System. 86

New Product in Coca-Cola. 88

Basis of Right Execution Daily (RED). 101

Market Segmentation Model. 104

Visi-Cooler Presence & Condition. 105

RED Score Tracking. 108

Objectives of RED. 110

Part: III

Chapter-5: Finding Analysis

SWOT Analysis. 112

Chapter-6: Field Experience 114

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Research Methodology.

Initial Stage & Later Stage 115

My Role in Project RED. 118

Findings of Project. 120

Recommendations. 121

Limitations of Project. 122

Conclusion. 124

BIBLIOGRAPHY: 125

• BOOKS

Example: - Philip Kottler – “Marketing Management”, Bound, Stash &

Others-“Marketing Research” & “Booklet of RED”, Coca-Cola India.

• WEBSITES

Example: - www.google.com & www.coca-cola.com

4

CERTIFICATE

This is to certify that the Summer Training Project Report entitled

“NEW PRODUCT DEVELOPMENT & RED (RIGHT EXECUTION DAILY) “

submitted in partial fulfillment for the award of Master of Business

Administration degree by G B Technical University, Lucknow, was carried out

by Mr. ANKIT SRIVASTAV . This has not been submitted to any other

University or Institution for the award of any degree/diploma/certificate.

Dr. K. VENKAIAH BABUHead of the Department

DECLARATION

5

I hereby declare that this Summer Training Project Report entitled

“NEW PRODUCT DEVELOPMENT & RED (RIGHT EXECUTION

DAILY)” submitted by me to LDC Institute of Technical Studies,

Allahabad, is bonafide work undertaken by me and it is not

submitted to any other University or Institution for the award of

any degree/diploma/ certificated or published any time before.

(ANKIT SRIVASTAV)

PREFACE

“Acceptance of New challenge makes the path For Future success”

Master of Business Administration is a course, which combines both

theory and its applications as its contents of study in the field of

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management. As part and parcel of this course, every aspirant has to

undergo an ‘in – company training’ in an organization. The purpose of this

training is to expose the student of management sciences with real life

situations existing in the organization and to provide an insight into the

various functions who can visualize things what they have been taught in

classrooms. Actually, it is the life force of management. It is in practical

training that the effectiveness of management itself is realized. I was

fortunate enough to do my training in Coca-Cola Company.

As a complementary to training, every trainee has to prepare and

submit a report on the working of the organization. This report is in

continuation of that tradition. It is an attempt to present an account of

practical knowledge and observations gathered during the training.

7

Acknowledgement

This project bears the imprint of many people who were either directly

or indirectly involved in the successful completion of this project work.

I am grateful to Dr. K.Venkaiah Babu, Head of Department of LDC

INTISTUTE OF TECHNICAL STUDIES, ALLAHABAD, for giving me the

opportunity to work on a project. I am thankful to Deep Kamal Khurana for

assigning me this project and also help me to handle the project.

I would also thankful to my Area Sales Executive Mr. Rohit

Tondon for help me this project. Last but not least, I extend a special

thanks to my parents and my brother Mr. Ashish Srivastav for their

committed support, devotion and co-operation.

(Ankit Srivastav)

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Part: I

9

Chapter-1: Brief insight & mission

A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA: -

Fast Moving Consumer Goods (FMCG), also known as Consumer

Packaged Goods (CPG) is 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.

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Though the absolute profit made on FMCG products is relatively

small, they generally sell in large numbers and so the cumulative profit on

such products can be large. Unlike some industries, such as automobiles,

computers, and airlines, FMCG does not suffer from mass layoffs every

time the economy starts to dip. A person may put off buying a car but he

will not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner

irrespective of global market dip, because they generally satisfy rather

fundamental, as opposed to luxurious needs. The FMCG sector, which is

growing at the rate of 9% is the fourth largest sector in the Indian Economy

and is worth Rs.93000 Crores. The main contributor, making up 32% of the

sector, is the South Indian region. It is predicted that in the year 2010, the

FMCG sector will be worth Rs.143000 Crores. The sector being one of the

biggest sectors of the Indian Economy provides up to 4 million jobs.

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

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better products to gain more consumers and satisfy the existing

consumers.

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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.

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.

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.

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THE CREATOR OF COCA COLA

John Pemberton invented Coke in 1886

MISSION

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

To Inspire Moments of Optimism... Through our brands and our

actions

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

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Chapter-2:The Coca-Cola Company

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. 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. The

Company aims at increasing shareowner value over time. 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. 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

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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.

LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

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COCA COLA

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending

machines in more than 200 countries. It is produced by The Coca-Cola Company

and is often referred to simply as Coke. Originally intended as a patent medicine

when it was invented in the late 19th century by John Pemberton, Coca-Cola was

bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke

to its dominance of the world soft drink market throughout the 20th century.

The company actually produces concentrate, which is then sold to various

licensed Coca-Cola bottlers throughout the world. The bottlers, who hold

territorially exclusive contracts with the company, produce finished product in cans

and bottles from the concentrate in combination with filtered water and sweeteners.

The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to

retail stores and vending machines. Such bottlers include Coca-Cola Enterprises,

which is the largest single Coca-Cola bottler in North America and Western

Europe. The Coca-Cola Company also sells concentrate for fountain sales to major

restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks

under the Coke brand name. The most common of these is Diet Coke, which has

become a major diet cola. However, others exist, including Diet Coke Caffeine-

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Free, Cherry Coke, Coca-Cola Zero, Vanilla Coke and special editions with lemon

and with lime and even with coffee.

In response to consumer insistence on a more natural product, the company

is in the process of phasing E211 or Sodium Benzoate, the controversial additive

linked to DNA damage and hyperactivity in children, out of Diet Coke. The

company has stated that it plans to remove the controversial additive from its other

products - including Sprite, and Oasis - as soon as a satisfactory alternative is

discovered.

History:

Old German Coca-Cola bottle opener.

The first Coca-Cola recipe was invented in Columbus, Georgia at a

drugstore by John Stith Pemberton, originally as a cocawine called

Pemberton's French Wine Coca in 1885. He may have been inspired by the

formidable success of European Angelo Mariani's cocawine, Vin Mariani.

In 1886, when Atlanta and Fulton County passed prohibition

legislation, Pemberton responded by developing Coca-Cola, essentially a

carbonated, non-alcoholic version of French Wine Cola.

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The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May

8, 1886 It was initially sold as a patent medicine for five cents a glass at

soda fountains, which were popular in the United States at the time due to

the belief that carbonated water was good for the health Pemberton

claimed Coca-Cola cured many diseases, including morphine addiction,

dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the

first advertisement for the beverage on May 29 of the same year in the

Atlanta Journal. For the first eight months only nine drinks were sold each

day.[citation needed]

By 1888, three versions of Coca-Cola — sold by three separate

businesses — were on the market. Asa Griggs Candler acquired a stake in

Pemberton's company in 1887 and incorporated it as the Coca Cola

Company in 1888 The same year, while suffering from an ongoing

addiction to morphine, Pemberton sold the rights a second time to four

more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H.

Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton

began selling his own version of the product.

In an attempt to clarify the situation, John Pemberton declared that

the name Coca-Cola belonged to Charley, but the other two manufacturers

could continue to use the formula. So, in the summer of 1888, Candler sold

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his beverage under the names Yum Yum and Koke. After both failed to

catch on, Candler set out to establish a legal claim to Coca-Cola in late

1888, in order to force his two competitors out of the business. Candler

purchased exclusive rights to the formula from John Pemberton, Margaret

Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to

claim her signature on the bill of sale had been forged, and subsequent

analysis has indicated John Pemberton's signature was most likely a

forgery as well.

In 1892, Candler incorporated a second company, The Coca-Cola

Company (the current corporation), and in 1910, Candler had the earliest

records of the company burned, further obscuring its legal origins.

Regardless, Candler began marketing the product, although the efficacy of

his concerted advertising campaign would not be realized until much later.

By the time of its 50th anniversary, the drink had reached the status of a

national icon for the USA. In 1935, it was certified kosher by Rabbi Tobias

Geffen, after the company made minor changes in the sourcing of some

ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894.

Cans of Coke first appeared in 1955. The first bottling of Coca-Cola

occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in

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1891. Its proprietor was Joseph A. Biedenharn. The original bottles were

Biedenharn bottles, very different from the much later hobble-skirt design

that is now so familiar.

Asa Candler was tentative about bottling the drink, but the two

entrepreneurs who proposed the idea were so persuasive that Candler

signed a contract giving them control of the procedure. However, the

loosely termed contract proved to be problematic for the company for

decades to come. Legal matters were not helped by the decision of the

bottlers to subcontract to other companies—in effect, becoming parent

bottlers.

Coke concentrate, or Coke syrup, was and is sold separately at

pharmacies in small quantities, as an over-the-counter remedy for nausea

or mildly upset stomach.

Production:

New Coke

On April 23, 1985, Coca-Cola, amid much publicity, attempted to

change the formula of the drink with "New Coke." Follow-up taste tests

revealed that most consumers preferred the taste of New Coke to both

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Coke and Pepsi. Coca-Cola management was unprepared, however, for

the nostalgic sentiments the drink aroused in the American public. The new

Coca-Cola formula caused a public backlash. Protests caused the

company to return to the old formula under the name Coca-Cola Classic on

July 10, 1985.

21st century

On February 7, 2005, the Coca-Cola Company announced that in the

second quarter of 2005 they planned a launch of a Diet Coke product

sweetened with the artificial sweetener sucralose ("Splenda"), the same

sweetener currently used in Pepsi One On March 21, 2005, it announced

another diet product, "Coca-Cola Zero", sweetened partly with a blend of

aspartame and acesulfame potassium Recently Coca-Cola has begun to

sell a new "healthy soda" Diet Coke with Vitamins B6, B12, Magnesium,

Niacin, and Zinc, marketed as "Diet Coke Plus".

On July 05, 2005, it was revealed that Coca-Cola would resume operations

in Iraq for the first time since the Arab League boycotted the company in

1968. In April 2007, in Canada, the name "Coca-Cola Classic" was

changed back to "Coca-Cola". The word "Classic" was truncated because

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"New Coke" was no longer in production, eliminating the need to

differentiate between the two. The formula remained unchanged.

Use of stimulants in formula

When launched Coca Cola's two key ingredients were cocaine

(benzoylmethyl ecgonine) and caffeine. The cocaine was derived from the

coca leave and the caffeine from kola nuts - Coca-Cola (the 'K' in Kola was

replaced with a C for marketing purposes).

Coca - Cocaine

Pemberton called for five ounces of coca leaf per gallon of syrup, a

significant dose, whereas, in 1891, Candler claimed his formula (altered

extensively from Pemberton's original) contained only a tenth of this

amount. Coca Cola did once contain an estimated nine milligrams of

cocaine per glass, but in 1903 it was removed Coca Cola still contains coca

flavoring.

After 1904, Coca Cola started using, instead of fresh leaves, "spent"

leaves - the leftovers of the cocaine-extraction process with cocaine trace

levels left over at a molecular level. To this day, Coca Cola uses as an

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ingredient a cocaine free coca leaf extract prepared at a Stepan Company

plant in Maywood, New Jersey.

In the United States, Stepan Company is the only manufacturing

plant authorized by the Federal Government to import and process the

coca plant Stepan laboratory in Maywood, N.J., is the nation's only legal

commercial importer of coca leaves, which it obtains mainly from Peru and,

to a lesser extent, Bolivia. Besides producing the coca flavoring agent for

Coca Cola, Stepal Company extracts cocaine from the coca leaves, which

it sells to Mallinckrodt Inc, a St. Louis pharmaceutical manufacturer that is

the only company in the United States licensed to purify cocaine for

medicinal use N.J. Stepan buys about 100 metric tons of dried Peruvian

coca leaves each year, said Marco Castillo, spokesman for Peru's state-

owned National Coca Co.

Kola Nuts - Caffeine

Kola nuts act as a flavoring in Coca Cola, but are also the beverage's

source of caffeine. In Britain, for example, the ingredient labels states

"Flavorings (Including Caffeine)". Kola nuts contain about 2 to 3.5 percent

caffeine, are of bitter flavor and are commonly used in cola soft drinks. In

1911 The US government initiated United States v. Forty Barrels and

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Twenty Kegs of Coca-Cola, hoping to force Coca Cola to remove caffeine

from its formula. The case was decided in flavor of Coca Cola.

Subsequently, in 1912 the US Pure Food and Drug Act was amended,

adding caffeine to the list of "habit-forming" and "deleterious" substances

which must be listed on a product's label.

Coca Cola contains 46 mg/12 fl oz of caffeine, while Diet Coke Caffeine-

Free contains 0 mg. Caffeine may be used by athletes as ergogenic aid - to

increasing the capacity for mental or physical labor. The ergogenic qualities

of caffeine are contested, although there is strong evidence that it may

significantly enhance endurance performance. For this reason, caffeine is

listed as a restricted substance by the International Olympic Committee

(IOC). Nevertheless Coca Cola was the leading sponsor of the 1996

summer Olympic Games

The exact formula of Coca-Cola is a famous trade secret. The original copy

of the formula is held in SunTrust Bank's main vault in Atlanta. Its

predecessor, the Trust Company, was the underwriter for the Coca-Cola

Company's initial public offering in 1919. 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

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and others, in addition to the prescribed duo, have known the formulation

process.

Franchised production model

The actual production and distribution of Coca-Cola follows a

franchising model. The Coca-Cola Company only produces a syrup

concentrate, which it sells to various bottlers throughout the world who hold

Coca-Cola franchises for one or more geographical areas. The bottlers

produce the final drink by mixing the syrup with filtered water and sugar (or

artificial sweeteners) and then carbonate it before filling it into cans and

bottles, which the bottlers then sell and distribute to retail stores, vending

machines, restaurants and food service distributors

The Coca-Cola Company owns minority shares in some of its largest

franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola

Hellenic Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully

independent bottlers produce almost half of the volume sold in the world.

Since independent bottlers add sugar and sweeteners, the sweetness of

the drink differs in various parts of the world, to cater for local tastes

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Brand portfolio

Name Launched Discontinued Notes

Coca-Cola 1886

Coca-Cola Cherry

1985

Coca-Cola with Lemon

2001 2005

Still available in: American Samoa, Austria, Australia, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, Norway, Philippines, Reunion, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Tunisia, United States, and West Bank-Gaza

Coca-Cola Vanilla

2002 2005Still available in: Austria, Australia, China, Germany, Hong Kong, South Africa, New Zealand (600ml and 350 ml only) and Russia

2007 It was reintroduced in June 2007 by popular demand

Coca-Cola C2

2004 2007 Was only available in Japan, Canada, and the United States.

Coca-Cola with Lime

2005Still available in Belgium, Singapore

Coca-Cola Raspberry

June 2005 End of 2005 Was only available in New Zealand.

Coca-Cola M5

2005Only available in Federation of Bosnia and Herzegovina, Germany, Italy, Spain, Mexico and Brazil

Coca-Cola Black Cherry Vanilla

2006Middle of 2007

Was replaced by Vanilla Coke in June 2007

Coca-Cola Blāk

2006Beginning of 2008

Only available in the United States, France, Canada, Czech Republic, Federation of Bosnia and Herzegovina, Bulgaria and Lithuania

Coca-Cola Citra

2006 Only available in Federation of Bosnia and Herzegovina, New Zealand and Japan.

Coca-Cola Light Sango

2006 Only available in France and Belgium.

Coca-Cola-Orange

2007 Only available in United Kingdom

Fanta Apple

2009 Available in India

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Bottle and logo design

The famous Coca-Cola logo was created by John Pemberton's

bookkeeper, Frank Mason Robinson, in 1885 It was Robinson who came

up with the name, and he also 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.

Earl R.Dean's original 1915 concept drawing of the contour Coca-Cola

bottle.

Dean reduced the middle diameter...and the famous Contour Coca-Cola

Bottle was born.

The prototype never made it to production since its middle diameter

was larger than its base. This would make it unstable on conveyor belts.

The equally famous Coca-Cola bottle, called the "contour bottle"

within the company, but known to some as the "hobble skirt" bottle, was

created in 1915 by bottle designer, Earl R. Dean. In 1915, the Coca-Cola

Company launched a competition among its bottle suppliers to create a

new bottle for the beverage that would distinguish it from other beverage

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bottles... "a bottle which a person could recognize even if they felt it in the

dark, and so shaped that, even if broken, a person could tell at a glance

what it was" Chapman J. Root, president of the Root Glass Company,

turned the project over to members of his supervisory staff including

company auditor T. Clyde Edwards, plant superintendent Alexander

Samuelsson and Earl R. Dean, bottle designer and supervisor of the bottle

molding room.

Root and his subordinates decided to base the bottle’s design on one

of the soda’s two ingredients, the coca leaf or the cola nut, but were

unaware of what either ingredient looked like. Dean and Edwards went to

the Emeline Fairbanks Memorial Library and were unable to find any

information about coca or cola. Instead they were inspired by a picture of

the gourd-shaped cocoa pod in the Encyclopedia Britannica which

Chapman Root approved as the model for the prototype.[39]

Faced with the upcoming scheduled maintenance of the mold-making

machinery, over the next 24 hours Dean sketched out and created the mold

for the bottle. Dean then molded a small number of bottles before the

glass-molding machinery was turned off.

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Chapman Root approved the prototype bottle and a design patent

was issued on the bottle in November, 1915. The bottle was chosen over

other entries at the bottler’s convention in 1916 and was on the market the

same year. By 1920, Dean’s contoured bottle became the standard for the

Coca-Cola Company. Today, the contour Coca-Cola bottle is one of the

most recognized packages on the planet..."even in the dark!"

As a reward for his efforts, Dean was offered a choice between a

$500 bonus or a lifetime job at the Root Glass Company. He chose the

lifetime job and kept it until the Owens-Illinois Glass Company bought out

the Root Glass Company in the mid 1930s. Dean went on to work in other

Midwestern glass factories.

Although endorsed by some, this version of events is not considered

authoritative by many who cite its implausibility as difficult to believe. One

alternative depiction has Raymond Loewy as the inventor of the unique

design, but although Loewy did serve as a designer of Coke cans and

bottles in later years, he was in the French Army in the year the bottle was

invented and did not migrate to the United States until 1919. Others have

attributed inspiration for the design not to the cacao pod, but to a Victorian

hooped dress.

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In 1997, Coca-Cola also introduced a "contour can", similar in shape

to their famous bottle, on a few test markets, including Terre Haute,

Indiana. This new can was however never widely released.

A new slim and tall can has begun to appear in Australia as of

December 20, 2006, which costs an average of $2AUD. The cans have a

distinct resemblance to energy drinks that are popular with the teenage

demographic. It is unknown if this design is of limited edition or may soon

replace the current 355 ml cans that have been used in the past (the new

slim cans are 300 ml, making the volume to cost ratio even smaller).

In January 2007, Coca-Cola Canada changed "Coca-Cola Classic"

labelling, removing the "Classic" designation, leaving only "Coca-Cola".

Coca-Cola stated this is merely a name change and the product remains

the same. The cans still bear the "Classic" logo in the United States.

Coca-Cola in the new aluminum bottle.

Coca-Cola is a registered trademark in most countries around the

world and should always be written with the hyphen and not as "Coca

Cola". The US trademark was registered in the United States Patent Office

on 31 January 1893. In the UK Coca-Cola was registered with the UK

Patent Office on 11 July 1922, under registration number 427817.

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In 2007, Coca-Cola introduced an aluminum can that is designed to

look like the original glass bottles that Coca-Cola was first distributed in .

In 2007, the Coca-Cola logo on cans and bottles has changed,

retaining the red color and familiar typeface but taking branding back in

time by removing much of the clutter on the can, leaving only the logo and

a plain white swirl-- the "dynamic ribbon".

In 2008, the Coca-Cola plastic bottles for all Coke varieties was

changed with a new plastic screw cap and contoured bottle shape

designed to evoke the old glass bottles.

Local competitors

Pepsi is often second to Coke in terms of sales, but outsells Coca-

Cola in some localities. Around the world, some local brands do compete

with Coke. In South and Central America, Kola Real, known as Big Cola in

Mexico, is a fast growing competitor to Coca-Cola On the French island of

Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a

growing competitor to Coca-Cola. In the French region of Bretagne, Breizh

Cola is available. In Peru, Inca Kola outsells Coca-Cola. However, The

Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust

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outsells Coca-Cola during the Christmas season. In Scotland, the locally-

produced Irn-Bru was more popular than Coca-Cola until 2005, when

Coca-Cola and Diet Coke began to outpace its sales In India, Coca-Cola

ranked third behind the leader, Pepsi-Cola, and local drink Thums Up.

However, The Coca-Cola Company purchased Thums Up in 1993 As of

2004, Coca-Cola held a 60.9% market-share in India Tropicola, a domestic

drink, is served in Cuba instead of Coca-Cola, in which there exists a

United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is

a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to

Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola

and Parsi Cola are major competitors to Coca-Cola. In some parts of

China, Future cola can be bought. In Slovenia, the locally-produced Cockta

is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola,

which is sold only in the country's biggest supermarket chain, Mercator. In

Madagascar, Classiko Cola, made by Tiko Group, the largest

manufacturing company in the country, is a serious competitor to Coca-

Cola in many regions. On the Portuguese island of Madeira, Laranjada is

the top selling soft drink. In the UK Coca-Cola stated that Pepsi was not its

main rival, but rather Robinsons drinks.

33

Advertising

A 1890s advertisement showing model Hilda Clark in formal 19th

century attire. The ad is entitled Drink Coca-Cola 5¢.

Coca-Cola's advertising has had a significant impact on American

culture, and is frequently credited with the "invention" of the modern image

of Santa Claus as an old man in red-and-white garments; however, while

the company did in fact start promoting this image in the 1930s in its winter

advertising campaigns, it was already common before that. In fact, Coca-

Cola was not even the first soft drink company to utilize the modern image

Santa Claus in its advertising – White Rock Beverages used Santa in

advertisements for its ginger ale in 1923 after first using him to sell mineral

water in 1915

Before Santa Claus, however, Coca-Cola relied on images of smartly-

dressed young women to sell its beverages. Coca-Cola's first such

advertisement appeared in 1895 and featured a young Bostonian actress

named Hilda Clark as its spokesperson.

34

In the 1970s, a song from a Coca-Cola commercial called "I'd Like to

Teach the World to Sing", produced by Billy Davis, became a popular hit

single.

Coca-Cola has a policy of avoiding using children younger than the

age of 12 in any of its advertising. This decision was made as a result of a

lawsuit from the beginning of the 20th century that alleged that Coke's

caffeine content was dangerous to children. However, in recent times, this

has not stopped the company from targeting young consumers.

Coke's advertising is rather pervasive, as one of Woodruff's stated

goals was to ensure that everyone on Earth drank Coca-Cola as their

preferred beverage. This is especially true in southern areas of the United

States, such as Atlanta, where Coke was born.

Some of the memorable Coca-Cola television commercials between

1960 through 1986 were written and produced by former Atlanta radio

veteran Don Naylor (WGST 1936-1950, WAGA 1951-1959) during his

career as a producer for the McCann Erickson advertising agency. Many of

these early television commercials for Coca-Cola featured movie stars,

sports heroes, and popular singers of the day.

35

During the 1980s, Pepsi-Cola ran a series of television

advertisements showing people participating in taste tests essentially

demonstrating that: "Fifty percent of the participants who said they

preferred Coke actually chose the Pepsi". Statisticians were quick to point

out the problematic nature of a 50/50 result; that most likely all this really

showed was that in blind tests, most people simply cannot tell the

difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's

ads in an incident sometimes referred to as the cola wars; one of Coke's

ads compared the so-called Pepsi challenge to two chimpanzees deciding

which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership

in the market.

Selena was a spokesperson for Coca-Cola from 1989 till the time of

her death. She filmed three commercials for the company. In 1994 to

commemorate her 5 years with the company, Coca-Cola issued special

Selena coke bottles

In an attempt to broaden its portfolio, Coca-Cola purchased Columbia

Pictures in 1982. Columbia provided subtle publicity through Coke product

placements in many of its films while under Coke's ownership. However,

after a few early successes, Columbia began to under-perform, and was

dropped by the company in 1989.

36

Coca-Cola has gone through a number of different advertising

slogans in its long history, including "The pause that refreshes", "I'd like to

buy the world a Coke", and "Coke is it" (see Coca-Cola slogans).

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty

campaign where consumers earn virtual "points" by entering codes from

special marked packages of Coca-Cola products into a website. These

points can in turn be redeemed for various prizes or sweepstakes entries

Sponsorship of sporting events

Coca-Cola was the first-ever sponsor of the Olympic games, at the

1928 games in Amsterdam and has been an Olympics sponsor ever since.]

This corporate sponsorship included the 1996 Summer Olympics hosted in

Atlanta, which allowed Coca-Cola to spotlight its hometown. Since 1978

Coca-Cola has sponsored each FIFA World Cup and other competitions

organized by FIFA. In fact, one of the FIFA tournament trophy: FIFA World

Youth Championship from Tunisia in 1977 to Malaysia in 1997 was called

"FIFA - Coca Cola Cup".[54] In addition, Coca-Cola sponsors the annual

Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at

Lowe's Motor Speedway in Charlotte, North Carolina and Daytona

International Speedway in Daytona, Florida. Coca-Cola has a long history

37

of sports marketing relationships, which over the years have included Major

League Baseball, the National Football League, National Basketball

Association and the National Hockey League, as well as with many teams

within those leagues. Coca-Cola is the official soft drink of many collegiate

football teams throughout the nation.

In India Coca Cola was the one of the official Sponsors of the 1996

Cricket World Cup.

In England, Coca-Cola is the main sponsor of The Football League, a

name given to the three professional divisions below the Premier League in

football (soccer). It is also responsible for the renaming of these divisions-

until the advent of Coca-Cola sponsorship; they were referred to as

Divisions One, Two and Three. Since 2004, the divisions have been known

as The Championship (equiv. of Division 1), League One (equiv. of Div. 2)

and League 2 (equiv. of Division 3). This renaming has caused unrest

amongst some fans that see it as farcical that the third tier of English

Football is now called "League One." In 2005 Coca-cola launched a

competition for the 72 clubs of the football league - it was called "Win a

Player". These allowed fans to place 1 vote per day for their beloved club,

with 1 entry being chose at random earning £250,000 for the club. This was

repeated in 2006. The "Win a Player" competition was very controversial,

38

as at the end of the 2 competitions, Leeds United AFC had the most votes

by more than double, yet they did not win any money to spend on a new

player for the club. In 2007 the competition changed to "Buy a Player". This

competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-Cola

and submit the code on the wrapper on the Coca-Cola website {www.coca-

colafootball.co.uk}. This code could then earn anything from 50p to

£100,000 for a club of their choice. This competition was favored over the

old "Win A Player" competition as it allowed all clubs to win some money,

instead of all the money going to one winning club.

39

ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

40

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

41

Region VicePresident

AGM/AOD Unit 1

AGM/AOD Unit 2

AGM/AODUnit 3

AGM/AODUnit4

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

Coca Cola Channel Marketing and Profits

Coca Cola has managed their company marketing and sales strategy

within channels. Have you ever considered the significance of the Coke

vending machine to the success

and profitability of the Coca Cola company? This channel is direct to

consumer and vending machines often have little to no competition and no

trade or price promotions. Develop solutions for groups of customers and

deploy your benefit throughout the channel as compared to forcing a broad

solution onto multiple customer types.

For many food companies, the answer to this single question can point to

sizeable new profits and opportunities for growth via adding new sales

channels and opening new markets with profits and speed.

The Coke Company operates three primary delivery systems for its

business channels:

42

• Bulk delivery for the channels of large Supermarkets, Mass

Merchandisers and

Club stores;

• For smaller channels Coke does advanced sale delivery for convenience

stores, drug stores, small supermarkets and on-premise fountain

accounts.

• Full service delivery for its full service vending customers.

Key Channel Listing

Supermarkets

Convenience Stores

Fast Food

Petroleum Retailers

Chain Drug Stores

Hotels/Motels/Resorts

Mass Merchandisers

U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and

DECA

Vending

If you noticed the growth of tractor trailer deliveries by Coke into C-Stores

and other channels in the past year or so, you noticed their new delivery

scheme. In 2006, the Company began changing its delivery method for its

route delivery system. Historically, the Company loaded its trucks at a

43

warehouse with products the route delivery employee would deliver. The

delivery employee was responsible for pulling the required products off a

side load truck at each customer location to fill the customer's order. Coke

began using a new Coo Lift® delivery system in 2006 in a portion of the

Company's territory which involves pre-building orders in the warehouse on

a small pallet the delivery employee can roll off a truck directly into the

customer's location. The Coo Lift® delivery system involves the use of a

rear loading truck rather than a conventional side loading truck. Coke

anticipates the implementation of this delivery system will continue over the

next several years. This rollout required additional capital spending for the

rear loading delivery vehicle. The Company anticipates that this change in

delivery methodology will result in significant savings in future years and

more efficient delivery of a greater number of products.

CriticismsIt has been suggested that some of the information in this article's Criticism

or Controversy section(s) be merged into other sections to achieve a more neutral

presentation.

The Coca-Cola Company has been criticized for its business practices as

well as the alleged adverse health effects of its flagship product. A common

criticism of Coke based on its allegedly toxic acidity levels has been found to be

44

baseless by researchers; lawsuits based on these criticisms have been dismissed by

several American courts for this reason.

Since there are indications that "soda and sweetened drinks are the main

source of calories in [the] American diet,"] most nutritionists advise that Coca-Cola

and other soft drinks can be harmful if consumed excessively, particularly to young

children whose soft drink consumption competes with, rather than complements, a

balanced diet. Studies have shown that regular soft drink users have a lower intake

of calcium, magnesium, ascorbic acid, riboflavin, and vitamin A The drink has also

aroused criticism for its use of caffeine, due to the possibility of physical

dependence A link has been shown between long-term regular cola intake, of

which Coca-Cola is the most consumed brand worldwide, and osteoporosis in

older women (but not men)This was thought to be due to the presence of

phosphoric acid, and the risk was found to be same for caffeinated and no

caffeinated colas, as well as the same for diet and sugared colas.

Although numerous court cases have been filed against The Coca-Cola

Company since the 1920s, alleging that the acidity of the drink is dangerous, no

evidence corroborating this claim has been found. Under normal conditions,

scientific evidence indicates Coca-Cola's acidity causes no immediate harm.

45

There is also some concern regarding the usage of high fructose corn syrup

in the production of Coca-Cola. Since 1985 in the U.S., Coke has been made with

high fructose corn syrup, instead of sugar glucose or fructose, to reduce costs. This

has come under criticism because of concerns that the corn used to produce corn

syrup may come from genetically altered plants. Some nutritionists also caution

against consumption of high fructose corn syrup because of possible links to

obesity and type-2 diabetes.

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. Tested products included Coke, Pepsi, and

several other soft drinks, many produced by the Coca-Cola Company. CSE found

that the Indian produced Pepsi's soft drink products had 36 times the level of

pesticide residues permitted under European Union regulations; Coca-Cola's soft

drink was found to have 30 times the permitted amount. CSE said it had tested the

same products sold in the US and found no such residues. After the pesticide

allegations were made in 2003, Coca-Cola sales declined by 15%. In 2004, an

46

Indian parliamentary committee backed up CSE's findings, and a government-

appointed committee was tasked with developing the world's first pesticide

standards for soft drinks. The Coca-Cola Company has responded that its plants

filter water to remove potential contaminants and that its products are tested for

pesticides and must meet minimum health standards before they are distributed. [63]

In the Indian state of Kerala, sale and production of Coca-Cola, along with other

soft drinks, was initially banned, before the High Court in Kerala overturned the

ban ruling that only the federal government can ban food products. Coca-Cola has

also been accused of excessive water usage in India.

47

Chapter 3: Hindustan Coca-Cola Beverages

Pvt. Ltd. Najibabad

Plant Profile

Najibabad plant (the company) is spread over an area of about 50

thousand square meter. The plant was established in 1983 as Mansarover

Bottling Company Ltd. This plant was a franchise outlet for Parle Exports

Bombay.

As per the BIFR ruling, coca-cola took over this plant on 14th Feb.

And absorbed all the 275 permanent employees.

The only major change in the operational set up was the appointment of a

General Manager and a Finance Manager. This change led to a certain

amount of distrust and uncertainty among the employees. This feeling was

further strengthened ,when certain employees who in the past were high in

the hierarchy were left with limited authority and responsibility .A change in

the management of decision making.

48

The Najibabad bottling plant’s product line consists of the

following:

Coke

Thums UP

Sprit

Fanta

Maaza

Kinley Soda

Limca

The plant procures the concentrate required for producing the soft

drinks from Pune .The cans and the pet bottles for all the soft drink and

procured from Pune and Ghaziabad. The plant produces both 300 ml and

200ml of Coke. Coca-cola India has also introduced Maaza tetra packs that

are produced in Bhopal and then distributed in the region.

49

Capacity of the plant

The product is seasonal in nature thus the production depends upon

the seasons. The peak season when the production is the maximum is

between April and July.

The per day peak production capacity is as follows:

Aerated Drinks: 23,000 Crates

Maaza : 10,000 Crates

The per day production during non-peak season is as per demand.

The plant has three bottling lines. Two bottling lines produced aerated

drinks and the line produces a non- aerated drink i.e., Maaza.

-Aerated Drink:

Lin 1: 340 Bottles per minute.

Line 2: 200 Bottles per minute.

-Non- Aerated Drink:

Line 3: 240 Bottles per minute.

The number of hours the machines woks depends upon the season

and the demand .During the peak season the machines run approximately

for 16 hrs-24 hrs. But during the non peak season the plant is closed down

for maintenance from the month of November till January .Other than this,

the plant is operated according to market demand.

50

Organization structure of the sales

Department in Hccbpl

51

AGM/AOD

Plant Manager

Route to Market

Human ResourceManager

Finance Manager

General Sales

Manager

Area Sales

Manager

ChannelManager

Area Capabilit

yManager

Sales Executive

Sales Trainers

Market Develope

r

Distributors

AndSalesmen

Marketing

Key Accounts

MARKETING MIX OF H.C.C.B.P.L

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:

Products of Company

In the Cola Section:

THUMS UP

‘Strong cola Taste, exciting personality’

Thums up is the leading carbonated soft drink and trusted brand in India.

Originally introduced in 1977 it was acquired by the Coca-Cola

Company in 1993. It is known for its strong fizzy taste and it’s confident,

52

mature and uniquely masculine attitude. This brand clearly seeks to

separate the men from the boys.

Volumes of the thumps up

It has dark brown color with very high content of CO2 which makes the

Cola flavor is very strong .It is available in different volumes in the

market likes-

200 ml glass bottle.

300 ml glass bottle.

350 ml express pack.

330 ml can.

600 ml pet bottle.

1.25lt pet bottle.

2lt bottle.

53

DIET COKE

“Looking good and tasting great”

Diet coke was born in 1982 and quickly became the No.1 sugar free drink

in diet conscious America, known as Diet coke in the U.S. ,Canada,

Australia and great Britain and coca-cola light in other countries ,it now the

No.3 soft drink in the world. It’s the drink for people who want no calories,

but plenty of taste. Ad campaigns around the world for diet coke share a

playful, sophisticated and sexy attitude.

Visit our Audio/Video center to witness how the Diet coke north American

ad campaign celebrates the real and human attributes that make people

alluring in the eyes of others.

54

Coca- Cola

Cola-cola is the most popular and biggest selling soft drinks in

history, as well as the best known product in the world. Created by

Dr.John.S.Pemberton, Coca-cola was first offered as fountain beverages

by mixing Coca-cola syrup with Carbonated water. Coca-cola was

registered as a trademark in 1895.Coca-cola was being sold in every state

and territory in the united state. In 1899, the co. began Franchised bottling

operations in the United States.

Today, you can find coca-cola in virtually every part of the world and

the coca-cola company has more than 230 beverages to its portfolio.

55

Volumes of the Coca- Cola

It has brown color with very high content of CO2 which makes the Cola

flavor is very strong .It is available in different volumes in the market

likes-

200 ml glass bottle.

300 ml glass bottle.

350 ml express pack.

330 ml can.

600 ml pet bottle.

1.25lt pet bottle.

2.25lt pet bottle.

56

In the Lemon Section

SPRITE

“Clear, crisp, refreshing.”

Introduced in 1960, Sprite is the world’s leading lemon lime flavored

soft drink .sprite is sold in more than 190 countries and ranks as the No.4

soft drink worldwide with a strong appeal to young people. Millions of

people enjoy Sprite because of its crisp, clean taste that really quenches

your thirst .But also has an honest, straightforward attitude about things

that sets it apart from others soft drinks. Sprite encourages you to be true

to who are and to obey your thirst.

57

Volumes of the Sprite

It is color less with packing in green colored bottle. It has content of CO2

.It is available in different volumes in the market likes-

200 ml glass bottle.

300 ml glass bottle.

350 ml express pack.

330 ml can.

600 ml pet bottle.

1.25lt pet bottle.

2. Lt Pet bottle.

LIMCA

“Light and Lemony”This thirst quenching beverages features a fresh, light lemon –lime

taste and fun –loving attitude. It’s a homegrown, national treasure in India,

where the Coca-Cola co. acquired it in 1993 the product’s invigoration taste

58

and cloudy look haven’t changed, but the brand has been revitalized with a

new marketing campaign. Limca continues to build a loyal following among

young adults who love the lighthearted way it compliments the best

moments of their lives. It’s also become a hit in many Persian Gulf

countries. Grab a limca and go.

Volumes of the LIMCA

It is light grey color. It has content of CO2 that makes its flavor tasty. It is

available in different volumes in the market likes-

200 ml glass bottle.

300 ml glass bottle.

350 ml express pack.

330 ml can.

600 ml pet bottle.

1.25Lt pet bottle.

2Lt pet bottle.

59

Minute maid Nimbu Fresh

The new Minute Maid Nimbu Fresh is a truly refreshing lemon juice-based

drink with no added preservative or added color. The latest offering is a

lemon juice-based drink from the Coca-Cola Company's (TCCC) stable

developed especially for consumers in India. Minute Maid Nimbu Fresh is

made out of great quality fresh lemon juice concentrate, providing

consumers with a great refreshing experience - just like natural, home-

made ‘nimbu pani'.

Volumes of the Minute Maid Nimbu Fresh

It is actually a Minute maid nimbu fresh , which is very easy to prepare by

mixing water in it and its packing in the market are :

400 ml pet bottle

1200 ml pet bottle.

In the Orange section:

FANTA

60

The coca-cola company acquired a favorite in Europe since the 1940

Fanta in 1960. Fanta orange is the core flavor , representing about 70% of

sales, but other citrus and fruit flavors have their own solid fan base.

Consumers around the world, particularly teens, fondly associate FANTA

with happiness and special times with friends and family. This positive

imagery is driven by the brand’s fun playful personality, which goes hand in

hand with the bright color, bold fruit taste, and tingly carbonation. Fanta

sells best in Brazil,Germany,Spain ,Japan, Italy and Argentina. Fanta

distribution was increased in the U.S. in 2001 with the return of four flavors:

Orange, Strawberry, Pineapple, and Grape.

Orange, the biggest seller, is now available in most of the country.

Volumes of the Fanta

It comes many flavors like orange. It has content of CO2 that makes

its flavor tasty. It is available in different volumes in the market likes

200 ml glass bottle.

300 ml glass bottle.

350 ml express pack.

330 ml can.

600 ml pet bottle.

1.25Lt pet bottle.

2 Lt pet bottle

61

In the Juice section:

MAAZA

“Yaari Dosti Taaza Maaza”

It is a real fruit taste Kids love ,plus added calcium Maaza tagline

“Yaari Dosti Taaza Maaza” means “Friendship moments with fresh

Maaza” in hindi . Maaza was introduced in India in 1984 as a no

carbonated mango fruit drink .It was acquired by the Coca-cola Co. in 1993

and is currently available in three flavors, mango, pineapple And orange

plus added calcium.

Volumes of the Maaza

It is of yellow color with decent taste of mango .It doesn’t contain

CO2 .It is available in different volumes in the market likes

200 ml Tetra pack. 250 glass Bottle. 250 express pack 600 ml pet bottle. 1.2Lt pet bottle.

62

MINUTE MAID

PULPY ORANGE

Minute maid pulpy orange , which is haired by the coca-cola company and

now its manufacturing in under coca-cola company with the better taste of

Orange’s.

Volumes of the Minute made pulpy orange

It is actually a Minute made pulpy orange , which is very easy to prepare

by mixing water in it and its packing in the market are :

400 ml pet bottle

1200 ml pet bottle.

63

In the Soda Water and Bottled Mineral Water section:

KINLEY CLUB SODA

This is thirst –Quenching beverage features fresh the fresh water with

the saturated oxygen level. This is thirst – quenching beverages features

a fresh and light oranges taste and a lighthearted attitude.

Volumes of the Clube Soda

It is color less and available in market :

300 ml glass bottle.

500 ml pet bottle.

64

KINLEY MINERAL WATER

This is thirst –Quenching beverage features fresh the fresh water with the

saturated oxygen level.

Volumes of the Kinley mineral water

K- Water is a mineral water available in following volumes in the market:

500 ml pet bottle

1 Lt ,pet bottle

2 Lt ,pet bottle

65

KINLEY Mineral Water

PACKAGING DETAILS

66

1.2 LTR

1 .25LTR

600ML

2 LTR

250ML

350 ML

200ML

300ML

330ML

PACK

SODA

LIMCA

SPRITE

FANTA

THUMSUP

COKEMAAZA

YES

NO

YES

NO

YES

NO

NO

NO

NO

NO

YES

YES

YES

NO

YES

YES

YES

YES

YES

NO

YES

YES

YES

YES

YES

YES

YES

YES

NO

NO

NO

YES

NO

YES

NO

YES

NO

YES

YESYESYESYESYES

NOYESYESYESYES

NONONONONO

NO

NO

YES

YES

YES

YES

YES

YES

YES

YES

PRICE DETAILS

Pack Retail Price Price for retailer

300 ML 12/- 264

200 ML 8/- 170

250 ML 12/- 264

350 ML 17/- 3782 Lt Pet 60/- 505

1.2 Lt 50/- 560

1.25 Lt 38/- 378

67

1.2 LTR

1 .25 LTR

600mL

2 LITRES

250ML

200ML

300ML

PACK NO.OF BOTTLES IN A CASE

12

12

24

9

24

24

24

EXPLANATION OF MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following

steps:

1. Water passes through the water treatment plant, further passing through

the sand filter and the activated carbon filter, so as to attain pure cleansed

water.

2. In the syrup room, the concentrate is blended with the sugar syrup

3 .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.

4. 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.

5. 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.

68

CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

QUALITY ASSURANCE(QA)

QA department ensure the total quality in each and every aspect of

the organization .This quality is not only concerned with individual

department like production of goods but it is concerned with every

functioning of the organization such as hygiene in the organization like

providing the nutrias food from the canteen , cleanliness in the

bathrooms ,not polluting the environment etc.

69

MANUFACTURING PLANT

BADDI (HP)

SALES AND DEPOT WARE HOUSE

DISTRIBUTION

OUT LETS

One of the major function of QA department is pre and post

manufacturing tests which ensures zero defect so that consumers can get

right quantity and quality of products .All the procured materials have to

undergo a rigorous quality check. Even before procurement the quality of

the material has been ensured by the sample check of material.

Objectives :

Total cost-: The first and foremost objectives is to bring down

overall cost. The costs involved in Logistics Operations-

a) Transportation of supplies to the plant and distribution of finished

goods through distribution system.

b) Processing customers orders.

c) Packaging.

d) Providing customers services.

e) Maintaining warehouse .

These functions are directly not responsible for sales . But they do

support the sales activites . So the total cost approach refers to

evaluation of all logistics expanded for any given sales revenue .By

using the cost approach the manager would try to maintain total logistics

cost as compared to the historical performance of the firm and in

comparison with other firms of the same industry

Sub – Optimization -: It is a term applied to a situation in which one

department objective or function is optimized without considering the

affect of action on others departments . The goal of logistics is to

70

manage the system to provide designated levels of manufacturing

supply at the least possible cost.

Cost Trade –Off -: This occur when a change in destination system

causes some costs to increase and other cost to decrease.

Customers Service -: Elements of customers service are :

a) On time delivery.

b) Proper handling of merchandise.

c) Quantity assembled should be according invoice.

d) On time service which includes after sales service, etc.

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

they need it.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution

Warehouse --- Retail Stock --- Retail Shelf --- Consumer

71

The customers of the Company are divided into different categories and

different routes, and every salesman is assigned to one particular route, which is to

be followed by him on a daily basis. A detailed and well-organized distribution

system contributes to the efficiency of the salesmen. It also leads to low costs,

higher sales and higher efficiency thereby leading to higher profits to the firm.

72

TRANSPORTATION LOGISTICS

The distribution function has to perform two functions: it has to

generates demand for the product and secondly ,it has to make sure that

demand thus created is matched by adequate and time supply .While all

the members of the channel will have to take part in dual function , the

transporter has primary responsibility .A logistics plan can be drawn by

considering the following points:

What are the alternatives modes of transport , viz .,road, rail, air, etc.

Available for transporting the goods from the point of manufacture to

the point of purchase ?

What is the mode which is optimal from the standpoint of total

distribution cost?

Is there any need for warehousing arrangements .keeping in view the

products and marketing characteristics.

In fact the first two are important enough to be considered even at the

time of selection of markets . The non- availability of required transportation

facility can out weigh all other marketing advantages that a company may

have . The perishable nature of products demands that must reach the

consumers within the shortest possible time.

73

Therefore, unless the potential markets are served ,delivery of such

time items cannot be undertaken.

To consider the second aspect , namely selection of the appropriate

mode of transport ,it is necessary first to identify the elements that taken

together constitute the total distribution costs. In a study carried out in the

US it is found that the total distribution costs are allocated over the various

components in the following proportion:

Administration 11.0%

Transportation 29.4%

Receiving and Shipping 7.8%

Packaging 11.9%

Warehouse 17.04%

Inventory carrying costs 17.04%

Order processing 5.5%

The proportion obviously will vary from product to product ,but all the

cost components, with sole exception of warehousing ,will have to be

considered for determining the total distribution costs of each and every

product.It is ,therefore obvious that the selection of the mode cannot be

taken only on the basis of the freight element, which at best will be only an

74

important segment of total distribution costs .But the decision will depend

on the total incidence of costs for alternative modes of transport. In general

the criteria that should be taken in mind deciding on the proper modes of

transport are cost speed frequency ,reliability , safety and appropriates with

regards to the product.

FACTORS AFFECTING CHANNEL DECISION:

Unit value – In general , direct sales preferred for items of high unit Value and wholesaler are approached for items of low value.

Bulk and Weight _: If bulk transportation is possible , direct exporting is preferred.

Technical nature-: Technologically complex and specialized products are usually sold direct.

Perish ablity_: The more perishable the product the shorter should be the channel leasing is usually adopted for technological perishable products.

Standardizations-: Indirect channels are possible for standardized products.

Stage of market development-_ New products are promoted by

Direct sales. In direct channels may be adapted for established products.

75

LOGISTICS IN COCA-COLA

The company HCCBPL PVT LTD. Najibabad, does its business in full fledge between March and June in western U.P. Approx 60% of the business of the year is done in these 4 months of period.

The company 80% of business depends on Returnable Glass Bottles company always try to receive same amount of empty bottles as it has been dispatched to distributers because if the organization will not do so then its production will hamper and that ultimately effect the sale.

Company always sends two-way vehicles instead of one-way vehicles .The concept of two-way is that vehicle will distribute the full bottles and return by taking empty bottles from them.

The one-way vehicles cost much higher than two-way vehicles are also returned to enable further production

This is beneficial for both company and distributor because company gives glass bottles and crates on loan to distributors and their money is receiving the bottles in the plant.

The company pays freight according to distance and load. It has a policy of paying freight according to load slabs & destination.

76

Part: II

77

Chapter-4: New Product Development in Coca-Cola :

INTRODUCTION ABOUT NEW PRODUCT DEVELOPMENT

Product development is the process of designing, creating, and

marketing an idea or product. The product can either be one that is new to

the marketplace or one that is new to your particular company, or, an

existing product that has been improved. In many instances a product will

be labeled new and improved when substantial changes have been made.

The Product Development Process

All product development goes through a similar planning process.

Although the process is a continuous one, it is crucial that companies stand

back after each step and evaluate whether the new product is worth the

investment to continue. That evaluation should be based on a specific set

of objective criteria, not someone's gut feeling. Even if the product is

wonderful, if no one buys it the company will not make a profit.

Brainstorming and developing a concept is the first step in product

development. Once an idea is generated, it is important to determine

whether there is a market for the product, what the target market is, and

78

whether the idea will be profitable, as well as whether it is feasible from an

engineering and financial standpoint. Once the product is determined to be

feasible, the idea or concept is tested on a small sample of customers

within the target market.

New Product Development Process :

• Idea Generation and Screening• Concept Development and Testing• Marketing Strategy• Business Analysis• Product Development• Test Marketing • Commercialization

Step 1. Idea Generation

Simply having an “idea” is worthless--you need to have proof of when you

came up with the idea for your invention. Write down everything you can

think of that relates to your invention, from what it is and how it works to

how you’ll make and market it. This is the first step to patenting your idea

and keeping it from being stolen. You’ve probably heard about the “poor

man’s patent”--writing your idea down and mailing it to yourself in a sealed

envelope so you have dated proof of your invention’s conception. This is

unreliable and unlikely to hold up in court. Write your idea down in an

inventor’s journal and have it signed by a witness. This journal will become

79

your bible throughout the patent process. An inventor's journal can by any

bound notebook whose pages are numbered consecutively and can't be

removed or reinserted. You can find specially designed inventor's journals

at bookstores (try Nolo Press or the Book Factory to start), or you can save

money and purchase a generic notebook anywhere they're sold, such as

the grocery store, office supply store, stationary store, etc

Systematic Search for New Product Ideas Internal sources Customers Competitors Distributors Suppliers

Step 2. Idea Screening

Criteria Process to spot good ideas and drop poor ones

– Market Size– Product Price– Development Time & Costs– Manufacturing Costs– Rate of Return

80

Step 3. Concept Development & Testing

1. Develop Product

Ideas into Alternativ

eProduct

Concepts

1. Develop Product

Ideas into Alternativ

eProduct

Concepts2. Concept

Testing - Test theProduct

Concepts with

Groupsof Target

Customers

2. Concept Testing - Test theProduct

Concepts with

Groupsof Target

Customers

3. Choose the

Best One

3. Choose the

Best One

81

Step 4. Marketing Strategy Development

Part One - Overall:Target Market

Planned Product Positioning

Sales & Profit Goals Market Share

Part One - Overall:Target Market

Planned Product Positioning

Sales & Profit Goals Market Share

Part Two - Short-Term:Product’s Planned Price

DistributionMarketing Budget

Part Two - Short-Term:Product’s Planned Price

DistributionMarketing Budget

Part Three - Long-Term:Sales & Profit Goals

Marketing Mix Strategy

Part Three - Long-Term:Sales & Profit Goals

Marketing Mix Strategy

82

Step 5. Business Analysis-

After management develop the product concept and

marketing strategy , it can evaluate the proposal’s business

attractiveness management needs to prepare sales ,cost and

profit projection to determine whether they satisfy company .As

new information comes in the business analysis will undergo

revision and expansion.

In business analysis doing a estimating total sales and

estimating cost and profits in business.

Business Analysis

- Review of Product Sales, Costs,

-and Profits Projections to See if

-They Meet Company Objectives

Step 6. Product Development-

83

The next stage of new product development is product

development. The job of translating target customer requirement

into a working prototype is helped dy a set of method known as

Quality Deployment. The methodology takes the list of Desired

cutomers attributes generated by market research and them into

a list of engineering attributes can be use a engineers.

The research and development department will develop

one or more physical versions of the product concept.

Step 7: Market Testing:

After management is satisfied with functional and psychologoical

performance, the product ready to be dressed up with a brand name and

packaging and put into a market test.The new product is introduced into an

authentic setting to learn how large the market is and how consumers and

dealers to handling using and repurchasing the product .

The amount of market testing is influenced by the investment cost

and risk on the one hand ,and the time pressutre and research cost on the

other .High investment –high risk products.

84

Step 8- Commercialization-

If the company goes a head with commercialization it will face its

largest cost to date the company will have to contract for manufacture or

build or rent a full scale manufacturing facility

New Product Opportunity

Understanding the customers and the market.

Economic change brigs about economic development increase in the

income in the long run but economic cycles and price changes in the

short run.

Sociological and development changes may appear in such factors as

decreasing family size.The trend affects the preference for products and

services.

Technological changes make changes in the product features and

innovation.

Political legal change brings about new trade agreement and government

contract.

85

New product development system

An effective product strategy links product decisions with cash

flow,market dynamics ,product life-cycle and organization capabilities .A

company must have cash for product development understand the changes

taking place in the market and have the necessary talent and resource for

product development.

86

Product development stages

Ideas for many sources

↓

Does the firm have ability to carry out the idea

↓

Customer requirement to win orders.

↓

Fuctional Specification.

↓

Product Specification

↓

Design Review

Are these product Spections the best

Way to meet customer expectation?

↓

Test market does the product meet customer

Expectation?

↓

Introduction

↓

Evaluations

87

Issues for product design

Robust design-: Means that the product is designed so that small variation in production or assembly does not affect the product.

Modular design-: Product design in easily segmented components are known as modular design .Modular design offer flexibility to production and marketing as it makes change easier.

Computer aided design-: Is the use of computer to interactively design product and prepare engineering documentation ,CAD software allows designers to save time and money y shortening development cycles for all product.

Computer aided manufacturing-: Refers to the use of

Specialized computer programs to direct and control manufactering

equipment.

NEW PRODUCT OF COCA COLACoca-Cola India refreshes millions of consumers throughout the

country .The company launch the new product in 350 ML express pack

and 1.25 Lt I Fridge Pack in, Coca-Cola, Thums Up, Fanta, Limca, Sprite,

Maaza, and also introduced Minute Maid Pulpy Orange, and Minute Maid

Nimbu Fresh in duration of 2008-2010. The company has invested more

than US$ 1 billion in its Indian operations, emerging as one of the country's

top international investors. In-addition the company’s business operations

also engage approximately 1,50,000 people in India.

88

Coke to launch 350 ml packs for people on-the-move

Place: New Delhi

Global beverages firm Coca Cola is planning to introduce 350 ml packs of most of its major brands, including Coca Cola, Diet Coke, Thumps Up and Mazaa, in a bid to attract on-the-move consumers ahead of the expected sales drop in the winter.

The company has already introduced the new Xpress 350 ml pack for its Sprite brand and plans to expand it to other products in a phased manner.

"Xpress 350 ml pack to be also made available in Coca-Cola, Diet Coke, Thumps Up, Maaza and Kinley Club Soda in the first phase followed by Fanta, Limca and Minute Maid Pulpy Orange in the second phase,".

"The Sprite Xpress packaging innovation will be the perfect complement to the on-the-move lifestyles of today's youth and it will further strengthen the brands youth connect,"

Launch a product in the following place in india

The latest packaging would be available in select markets including Delhi and NCR, Bangalore, Mumbai, Pune, Goa, Jaipur, Ahmedabad, Jodhpur and Udaipur.

The company will also launch a special campaign titled 'Seedhi Baat, No Bakwaas' to promote its latest format.

The integrated campaign would focus on out-of-home media through location-specific creatives in spots like shopping malls, parking areas and hang-out zones.

89

Launching   Date:  2008-09-29  

Coke in 350 ML

THUMPS UP 350 ML

Thums up is the leading carbonated soft drink and trusted brand It is

known for it’s strong fizzy taste and it,s confident, mature and uniquely

masculine attitude. This brand clearly seeks to separate the men from the

boys.

Price

Availability:

Model:MRP

Manufacturer:

Average Rating:

Rs. 17

In stock

18.00

COKE

Not rated.

Price

Availability:

Model:MRP

Manufacturer:

Average Rating:

Rs. 17

In stock

18.00

Thumps Up

Not rated.

90

91

SPRITE 350 ML

Sprite Xpress pack - a 350 ml on-the-go packaging innovation, priced at

Rs.15

Launched last year builds a stronger connect with the youth, who are

always on

The lookout of opportunities to move up the ladder. They prefer Sprite

simply

because of its unmatched thirst quenching ability and stating facts as they

are –

Seedhi Baat ,No Bakwaas, Clear Hai?!

Coke to launch 1.25 Ltr Fridge pack

Coca-Cola India’s innovative 1.25 liter Fridge Pack. The innovation, backed

by extensive research has been specially designed for Indian consumers. It

is aptly called the “Fridge Pack” as it easily fits into any average size

refrigerator owned by most families. To further strengthen consumer

connect especially within the in-home segment, Coca-Cola India has

extended its latest packaging innovation across its entire sparkling

beverage portfolio i.e. Coca-Cola, Thums Up, Sprite, Fanta, Limca.

92

First launched in select markets of Delhi, Mumbai, Nasik and states like

Gujarat and Orissa, the Fridge Pack has been a runaway success within 2

months of its launch in end March ‘08. Now as part of the 5 million

milestone celebration, Coca-Cola India today announced plans to

NATIONALLY roll out the 1.25 liter Fridge Pack across all markets.

According to Venkatesh Kini, Vice-President, Marketing, Coca-Cola India,

“Innovation has always been the hallmark of Coca-Cola’s business strategy

in India. With the trend of in-home consumption of ready to drink packaged

beverages on the rise, the success of the innovative 1.25 liter fridge pack is

exciting. It is heartening to see the packaging innovation cross the 5 million

milestone within 2 months of its launch in select markets. The challenge

now is to extend the benefits offered by the fridge pack to maximum

number of consumers. We are now in the process of rolling out this latest

innovation in a phased manner nationally, across our entire portfolio of

sparkling beverage brands.”

Advantages:

The Fridge Pack, comes loaded with numerous advantages for

consumers- be it the convenience to store in an average size refrigerator,

provide an ideal serving for one occasion consumption for 4-5 people. In-

93

addition, the packaging innovation also provides for better fizz retention

and at Rs 35 offers real value for money. The company has been launch

the fridge pack in Coca –Cola ,Thums up , Sprite,Fanta , Limca.

India’s largest selling Soft Drink brand in the clear lime segment, orange

segment,cola section. is all set to unveil its latest communication - Fridge

Mein Jayega Bade Kaam Ayega on

In.Com for the FIRST timeon August, 8, 2009.

New Delhi: Coca-Cola in India announced on Saturday the launch of the

latest communication initiative for Sprite – India’s largest selling Soft Drink

brand in the clear lime segment. The initiative Fridge Mein Jayega Bade

Kaam Ayega (fits in your Fridge, comes in handy in everyday life) for the

innovative 1.25 liter Fridge Pack has been designed to strengthen Sprite’s

consumer connect in the segment of in-home consumption. The 1.25 liter

Fridge Pack - a packaging innovation - comes loaded with numerous

Sprite Thums

94

advantages for consumers- be it the convenience to store in an average

size refrigerator or providing an ideal serving for one occasion consumption

for 4-5 people.

According to Mr. Srinivas Murthy – General Manager, Marketing

(Flavors) at Coca-Cola India, “Packaging innovation has always added a

new dimension to the whole experience of having a soft drink, making it

far more convenient for consumption and also offering better value for

money. With the trend of in-home consumption of ready to drink

packaged beverages on the rise, the convenient 1.25 liter fridge pack

offers immense benefits to the consumers. The new communication

initiative depicts the convenience of this pack through a creative

rendition that is peculiar to brand Sprite .The strategy includes building a

stronger connect with the youth, who prefer Sprite simply because of its

unmatched thirst quenching ability and its refreshingly honest attitude.

The clutter breaking innovative initiative is designed to bring out the no

nonsense and unpretentious attitude of Sprite.

Leveraging the online platform, Sprite will also launch an exciting consumer

contest on In.Com on August 7, ‘09, a day prior to the Online Premier of the

communication for its innovative 1.25 liter Fridge Pack.

95

Leveraging the Digital platform

Leveraging the online platform, Sprite will also launch an exciting consumer

contest on In.Com, a day prior to the Online Premier of the communication

for its innovative 1.25 liter Fridge Pack. As part of the communication,

Consumers get an opportunity to predict the entire plot of the

communication just by viewing the TVC for the initial 8 seconds. The

consumers are expected to predict the way forward for the protagonist who

uses a Fridge Pack to find a way for his dinner. 6 lucky consumers selected

from a computer generated lucky draw with the correct answers win Nokia

Multimedia Phones.

96

Minute Maid pupply Orange

Minute Maid is a product line of beverages, usually associated with

lorange juice, but now extends to soft drinks of many kinds, including Hi-C.

Minute Maid is sold under Cappy brand . .

Minute Maid was the first company to market orange juice concentrate,

allowing it to be distributed throughout the United States and served year-

round. The Minute Maid company is now owned by The Coca-Cola

Company, and is the world's largest marketer of fruit juices and drinks. The

firm opened its headquarters in Sugar Land Town Square in Sugar Land,

Texas, United States, on February 16, 2009; previously it was

The Minute Maid company was purchased by Coca-Cola in 1960

97

In 1967, Minute Maid relocated to Houston, Texas, and is joined with

Duncan Foods to form the Coca-Cola Foods division.

In 1970, the company was involved in a scandal in the United States about

bad housing, often referred to as "slave quarters," and working conditions

of Minute Maid farm laborers in Florida. The United Farm Workers stepped

in to support the workers. NBC reported on the issue in a 1970

documentary called Chet Huntley's Migrant: An NBC White Paper In

response to the bad press and a boycott in Florida, the company

established a program that improved the workers' situation

In 1973, the company released its first ready-to-drink, chilled orange juice

product in the United States, entering an "orange juice war" with Tropicana

In 1996, the name was changed from Minute Maid Corp. to The Minute

Maid Company.

The Coca-Cola Company sold its Minute Maid orange groves in Florida in

1997. The United Farm Workers again took the side of the orange growers

during this time

In 2001, the Minute Maid division of Coca-Cola launched the Simply

Orange brand.

98

In 2002, Minute Maid bought the naming rights to re-brand the Houston

Astros ballpark from Enron Field to Minute Maid Park

In 2003, Minute Maid's division fully merges with Coca-Cola North America

It is actually a Minute made pulpy orange , which is very easy to prepare by

mixing water in it and its packing in the market are :

400 ml pet bottle

1200 ml pet bottle.

Minute Maid Nimbu Fresh

Riding on the success of Minute Maid Pulpy Orange, Coca-Cola in India

today announced the launch of its latest product innovation under the

Minute Maid brand umbrella. The new Minute Maid Nimbu Fresh is a truly

refreshing lemon juice-based drink with no added preservative or added

color. The latest offering is a lemon juice-based drink from the Coca-Cola

Company's (TCCC) stable developed especially for consumers in India.

Minute Maid Nimbu Fresh is made out of great quality fresh lemon juice

concentrate, providing consumers with a great refreshing experience - just

like natural, home-made ‘nimbu pani'.

"Innovation has always been the hallmark of Coca-Cola's business strategy

99

in India. The launch of Minute Maid Nimbu Fresh is the latest example. Part

of a phased launch, the latest product innovation would be first made

available to consumers across the state of Tamil Nadu. As part of the same

process, over the next two months, Minute Maid Nimbu Fresh would be

retailed across 35,000 outlets in the state followed by a nation-wide launch

later this year", said T. Krishnakumar, CEO, Hindustan Coca-Cola

Beverages Pvt. Ltd at the press conference in Chennai ..

The latest innovation by Coca-Cola in India is targeted at consumers

across all age groups who are on the lookout for a naturally refreshing juice

drink. The innovative consumer proposition of Minute Maid Nimbu Fresh

especially formulated to offer a refreshing experience is best explained by

the brand's tagline – ‘Bilkul Ghar Jaisa' (just like home).

"We at Coca-Cola India are constantly trying to find new ways to delight

and refresh our consumers. It gives me immense pleasure to announce the

launch of Minute Maid Nimbu Fresh, a refreshing lemon juice-based drink

developed especially for Indian consumers said Ricardo Fort, Vice

President, Marketing, Coca-Cola India at the launch. "The roll out of the

latest innovation has been designed to further extend the company's

market leadership in the juice drink segment."

100

Minute Maid Nimbu Fresh is being made available in two pack sizes - on-

the-go 400 ml PET and 1 liter PET all affordably priced at Rs 15 and Rs 40

respectively. Coca-Cola in India currently enjoys market leadership in the

juice drink segment with brand Maaza (no.1 mango juice drink in the

country) and Minute Maid Pulpy Orange (no.1 orange juice drink in the

country). With the launch of Minute Maid Nimbu Fresh, Coca-Cola in India

is all set to further extend its leadership in this fast growing segment.

R E D(RIGHT EXECUTION DAILY)

101

RED works on two categories

1) Type of outlets

2) Volume of Outlet

1. Type of Outlet (Channel)

(A) GROCERY STORE

Grocery (customer profile): Store stocking a variety of regular uses

household items. The channels provide an opportunity for penetration as it

propels home consumption.

It includes all karyana stores, departmental stores, supermarkets,

provision stores etc.

Necessary Availability - 2 liter and 300ml

(B) EATING & DRINKING CHANNEL

Eating and Drinking Channel: Outlets range from the high-end restaurants

to the smaller dhabas. These outlets offer multiple

Opportunity to effect sales as people usually order something to drink along

with food. It includes

- Restaurants

- Bars and Pubs

102

- Dhabas

(C) CONVIENCE CHANNEL

Pan/bidi shops (customer profile): This segment includes PAN BIDDI

outlets that stock cigarettes, mint, and confectionary. It covers STD/ISD

phone booths, travel channel etc. Small outlets that mainly sell 200ml or

300ml bottles. They may also sell 600ml.

2. VOLUME OF OUTLETS

Diamond : > 800 cs Gold : 500-799 cs

Silver : 200-499 cs Bronze : < 200 cs

103

Market Segmentation models

CHANNELCLUSTER

Based on consumption

occasion

104

Visi-cooler presence & condition

Under RED market developer has to ensure that shopkeeper must display

all products. Display may be in the form of Shelf Display, Table Top Display

etc. All products must be displayed in brand order COLOJK i.e. Coke,

Thums up, Limca, Sprite, Fanta, Maaza, Minute Maid Pulpy Orange, Kinley

(mineral water & Soda water).

105

Activation Elements

Market developer must ensure that all these activation elements must

available at all the outlets. Detail of activation elements must available at

GROCERY STORES:

1. WARM DISPLAY RACK

2. SHELF DISPLAY

OPTIONAL ELEMENTS:-

1. STANDEE

2. FLANGE

3. SIX MOBILE HANGER

4. VISI COOLER BRAND STRIP

ACTIVATION ELEMENTS FOR E&D:-

1. COMBO STANDEE

2. FLANGE OR STANDEE OR GSB

3. BRANDED TABLE MAT

4. MENU BOARD OR MENU CARD

OPTIONAL ELEMENTS:-

1. WARM DISPLAY RACK

2. TABLE TOP RACK

3. TENT CARD

ACTIVATION ELEMENTS FOR CONVENIENCE:-

1. WARM DISPLAY RACK OR 1 TIER RACK

2. FLANGE OR STANDEE

3. AERIAL MOBILE HANGER

106

OPTIONAL ELEMENTS:-

1. TABLE TOP DISPLAYRED SCORING SHEET 2009, ALL CHANNELS ALI VPO CLASS

Q No E&D Type 1 E&D Type 2 Grocery Convenience

D G S D G S D G S D G S

VIS

ICO

OL

ER

1. Is a Coca Cola Visicooler present (if answer is no skip question 2-8)

2. Is the Visicooler/Chest as per standerd?

6 6 6 6 6 6 6 6 6 6 6 6

3. Stills Cooler (in diamond outlets only)

1 1 1 1

4. Is the Visicooler in the Prime position?

5 5 5 5 5 5 5 5 5 5 5 5

5. Is the Visicooler into working condition?

1 2 2 1 2 2 1 2 2 1 2 2

6. Is the Visicooler in the light working?

1 1 1 1 1 1 1 1 1 1 1 1

7. Is the Visicooler 100% pure? 10 10 10 10 10 10 10 10 10 10 10 10

8. Is the Visicooler shelf order compliant ?

6 6 6 6 6 6 6 6 6 6 6 6

Subtotal 30 30 30 30 30 30 30 30 30 30 30 30

AV

AIL

AB

ILIT

Y

9. Sparking soft drink (SSD) including soda 200 or 300 ml (Diamond/Gold Cola +3) Silver (Cola +2)

20 20 22 36 36 40 6 6 16 20 20 22

10. Sparking soft drink (SSD) including soda Mobile pet 500/600 Ml Dimond (Cola + 3) Gold (Cola +2) Silver (Cola +1) Xpress 350 Ml Diamond/Gold(Sprite +2) Silver(Silver+1)

16 16 16 12 12 12 16 16 16

11. Any Juice RGB (200/250 ML any Juice Tetra)

6 6 6 9 9 10 3 3 6 6 6 6

12. Mobile Juice (Diamond/Gold 2 flavour) Silver (1 flavour)

6 6 6 6 6 6 6 6 6

13. Juice large Pet (Diamond/Gold 2 flavours)

6 6

14. Large Pet 1.25 Ltr/1.5 Ltr/2 Ltr/2.25 Ltr including soda (Diamond (Cola +3) Gold (Cola +2) Silver (Cola +1)

15 15 10

15. Water (either 500 ml or 1 ltr) 2 2 5 5 2 2 2 2

Sub Total 50 50 50 50 50 50 50 50 50 50 50 50

AC

TIV

AT

ION

E & D

16. Branded Menu cards with KO beverages menu(at least 5 menu cards) Menu board (at least 1) Combo element

10 10 10 10 10 10 10

17. Flange/Road Standee/Flex/Glow sign board (at least 1 of the four)

3 3 3 3 3 3

2. VISICOOLER BRAND STRIP

107

RED SCORE TRACKING

The performance of market developer is measured on the basis of score

tracking.

Tracking will be done of the following Parameters:

1. Visi-cooler 30 points

2. Availability 50 points

3. Activation Elements 20 points

4. Bonus 05 points

GRAND TOTAL 105 points

These 105 points are distributed in various Parameters explained in the

following table:

108

AC

TIV

AT

ION

Grocery

18. Three tier rack pure & charged

8 8 8

19. Shelf display (other than rack)

5 5 5

Convenience

20. Table too display unit/hanging rack/aerial hanger

5 5 5

21. Shelf Display (other than rack)

5 5 5

22. Flange/Road Standee/Flex/Glow Sign Board(at least 1 of the 4)

3 3 3

All Channels

23. OBM/Dnnking Shot communication

3 3 3 3 3 3 3 3 3 3 3 3

24. Are prices of Coca Cola products communicated in a clear and visible manner?

4 4 4 4 4 4 4 4 4 4 4 4

Sub Total 20 20 20 20 20 20 20 20 20 20 20 20

Total 100 100 100 100 100 100 100 100 100 100 100 100Bonus Points

BO

NU

S

25. Large Pet/Fridge pack bonus/Diamond (Cola +3) Gold (Cola +2) Silver (Cola +1)

5 5 5

26. Mobile Express pack bonus mobile diamond (cola +3) gold (cola +2) Silver (cola +1) Express (diamond/gold/silver +2 sprite +1)

5 5 5 5 5 5 5 5 5

Grand Total 105 105 105 105 105 105 105 105 105 105 105 105

RED SCORING SHEET

109

OBJECTIVES OF RED

1. The main objective of this RED project is to increase the sales of

the company.

2. The next objective of this projects is to advertise the various

Products of the company.

3. The main objective of RED is to look out the retail outlets for the displays

of company products.

4. To study the channel analysis of Coca Cola through retail outlets in

Kotdwar.

5. To study the effectiveness of advertising products in the retail outlets and

their correction to visualize through consumer.

Someone has rightly said that

1. JO DIKHTA VO BIKTA HAI

2. JITNA DIKHTA HAI UTNA BIKTA HAI

3. JAISA DIKHTA HAI VAISA BIKTA HAI

110

Part III

111

Chapter-5: Findings And Analysis

SWOT ANALYSIS

STRENGTH:-

Coca-cola Potential brand position in the market.

Good quality and innovation of product for long term customers

relations ship.

Good advertising campaign, and brand ambassador.

Advertisement campaign more effective and change punch line

make. Emotional touch with customers and retail.

High investment in research and development.

Coca-cola has a good market share.

Segment of coke product to every age group.

To satisfy of retail or through schemes SGA, display.

WEAKNESS:

Lack of proper distribution in many areas.

Lack availability 1 it and 1.5 it product pack.

Lack supply of Kinley water in the market.

Rising No. of date dealers that will wrong effect in market

condition.

Retailers are not getting schemes at the time.

No distribute enough signage to retailers.

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Opportunity:

Coke is able to capture large market share.

More monopoly countries of coke brand.

To improve market mix (Product, price, promotion, place)

To increase the sale of Kinley water.

Threats:

Pepsi is the major competitors, that means watch myopia in the

market every time.

Pepsi have captured major market of 500ML, 1.5 and 2LT

Retailers divert to Pepsi because they are getting good schemes and SGA

signage. Increase local brand in the market.

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Chapter-6: Field Experience

The success of any survey depends upon the quality and integrity of

the survey or who collect the basic data by expressing the subject under

the study and on the respondent who provides the data required by filling

up the questionnaire. The accuracy of the data collected solely depends

upon the cooperation and truthfulness of the person who is being

interviewed.

Keeping this in mind i have tried my best to collect the reliable data.

During this process .I came across a variety of experiences some

interesting and some bitter ones.

After knowing the utility of the survey some of the respondent filled up

this questionnaire sincerely whereas some of the other was not interested

in it. How ever most of respond were friendly and cooperative and willingly

filled up the

Questionnaire with utmost sincerity and to est. of their knowledge.

Barring few exceptions I had a pleasant time with respondent .I hope that the

Respondent did not feel the interview insipid and boring.

I got the opportunity to interact with different people of different areas

in The Hindustan coca-cola beverages Pvt. Ltd. Najibabad ,Distt. Bijnor and

adjoining region like, KOTDWAR.

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RESEARCH METHODOLOGY

Project RED is a live project. It can broadly be classified in two stages,

which can be described as follows.

Initial Stage:-

This stage comprises of Product Knowledge and Process Knowledge.

The product knowledge means the knowledge of every product and

its variants offered by the company-

The Process Knowledge means the knowledge about the distribution

of the product and its variants from the sales depot to the different

retailers of the city.

The actual knowledge about the product and the process was

attained with the help of Route Riding.

Route Riding means to visit different outlets on the commuting

vehicle (vehicle which carries coke product from depot to different outlets)

along with salesman. By the route riding it is very easy to grasp and

understand how the cola market actually works. Route riding elaborated the

factors influencing the cola market and provided the information about the

competitor’s strategies and schemes which they offer to the retailers in

order to gain advantage. Retailer’s grievances were best known with the

help of route riding through personal interaction. Also with route riding any

one can know about the sales status of an outlet on a daily basis.

Later stage:

This stage comprises of the serious implementation of the project

RED in the area of Kotdwar. To ensure effective and fruitful

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implementation of the campaign, market developers (M.D.) were appointed

by the company. Market Developers carried the responsibility to handle all

the activities under the R.E.D. campaign.

The first step involved in this stage was to select the outlets where the

campaign has to be implemented. The outlets are selected on the basis of

some parameters like annual sale of the outlet, type of the outlet, space

available at the outlet etc. Total available market was mainly segmented on

two parameters, which are given below on the next page.

Outlet volume

On basis of outlet volume outlets are divided into e

main types.

(a) Diamond: -

This category includes those outlets whose annual sale is

more than 800 crates.

(b.) Gold :-

This category includes those outlets whose annual

sale is from 500 to 799 crates.

(c.) Silver :-

This category includes those outlets

whose annual sales is from 200 to 499 crates.

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(2.) Channel cluster

On basis of channel cluster outlets are divided into 3 main types.

(a.) Grocery :-

These outlets are primarily engaged in retailing of food and

various household items. It includes grocers (outlets dealing mainly in

grains, provision, spices, edible, oil etc.), and general stores.

(b.) E & D

(Eating and Drinking):- Outlets selling items to eat which are being cooked

within outlet, made at the outlet with possibility of consuming those

products within the outlet. The outlet may have a place to sit. It includes

Bakery, sweets shop, Restaurant, Bars, Juice centers, Ice cream parlor.

(c.) Convenience: - It includes outlets which are small stores or

shops, generally accessible locally. These are often located alongside of

busy roads. It includes Chemists, STD booths, Pan Shops etc.

After the identification of the outlet on the pre specified norms, the total

area of Kotdwar market was fragmented and each fragmented sub market

was to be looked after by the market developers appointed by the

company. Each M.D. had his permanent journey plan

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MY ROLE IN PROJECT “RED”

IMPLEMENTATION – First and foremost task for me was to implement the

project in the given area with the support of MD’s (MARKET

DEVELOPER). Various norms for different outlets had been fixed but their

implementation was very important. Different areas were assigned to me in

which I implemented RED and these areas are further visited by various

higher.

NAME   TOWN   VISICOOLER

AVAILABILITY (BRANDS IN No.s)  

ACTIVATION

S.NO.NAME OF OUTLETS

AREA

CHANNEL

CAT.

PRIME

LOCATION

PURITY

RGB

600 ML

2 Ltr

RGB MAAZA

JUICE M

OBILE

JUICE PET

RACK

SHELF DISPLAY

TABLE TOP

MOBILE

HANGER

                                 

                                 

                                 

                                 

                                 

                                 

                                 

                                 

                                 

                                 

                                 

                                 TOTAL                              

SIGNATURE OF ASM SIGNATURE OF SESIGNATURE OF DGM / SM

SIGNATURE OF ASM SIGNATURE OF SE

SIGNATURE OF MARKET DEVELOPER

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IMPLEMENTATION – First and foremost task for me was to

implement the project in the given area with the support of MD’s (MARKET

DEVELOPER). Various norms for different outlets had been fixed but their

implementation was very important. Different areas were assigned to me in

which I implemented RED and these areas are further visited by various

higher officials of the organization.

I measured the performance of sales team and distributors (under RED) in outlets With respect to all parameters of execution. I have to check the stock, that is available in the shop, then I have to make a report, and send to me team leader, the format of the report is that.

MARKET AUDITING (TRACKING PERFORMANCE) – Tracking

performance of the MD of corresponding area was also my responsibility. I

had to score him on fixed norms (RED SCORING SHEET) and also give

the feedback on his performance.

FINDING LOOPHOLES – Finding loopholes in the system like

absence of co-ordination between MD’s and SALES TEAM and

report to higher officials (Mr. Kamal Sharma) and DGM (SALES).

BRAND CONTACT - I had to interact regularly with shopkeepers to

know their grievances and solve them. If I could solve them then I

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reported them to my company guide, else he suggested me the

alternatives.

AVAILABILTY - I also need to give company Daily availability report

of Kotdwar of various brands.

FINDINGS OF PROJECT1). According to the demand of outlet owners, delivery of products are not

Made available in the outlets.

2). Efficient brands of coca – cola are not available in outlets.

3). Sales people and delivery persons do not visit the outlets on a regular basis.

4). Advertisement materials are not available in the right time at the right place i.e.

Different Channels like Grocery, Convenience, E&D.

5). Many outlet owners have complains on improperly working VISICOOLER i.e. its cooling Capacity is low or its lights are not working.

6). Improper management is seen as No mechanics visit the outlets despite of Complaints issued by outlet owners

7). Visicoolers are not placed at their Prime locations in many outlets

8). Many outlet owners express deep in satisfaction towards coca-cola as they do not get Any Prize or Cash discount as they receive from other companies.

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RECOMMENDATIONS

1. Delivery position should be maintained to get good return from the

market.

2. The company must try to make different brands of Coca-Cola available

at every retail outlet whether it is large or small, otherwise the

consumer may go for substitute.

3. Sales People and delivery persons should properly monitor the market

whether stocks are available and are properly utilized in the market or

not.

4. If Sign boards/Display boards are costly then we can provide them

alternate arrangements like wall paintings and posters.

5. We can provide them beautiful display racks, tablemats, menu-cards

etc, containing the trademark and brand name of the company.

6. Display material should be provided to the retailers on more regular

basis to increase the sales level.

7. Maintenance work of refrigerator must be improved.

8. The company should take steps to replace damaged or un-sellable

Coca-Cola

goods frequently from the retailers.

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9. The Company employees should make direct contact with the

consumers, so that they may aware with real situation of the market and

consumers attitude towards the product. For this they can arrange

awareness camps in different locations.10. At every petrol-pump we

should install Fountain Machine. It will be helpful in generating impulse

purchase and also as awareness about the products of the company

among the consumers.

LIMITATIONS OF THE PROJECT:

1. Out of nearly 650 total coca cola selling outlets were selected by the

company (These selected outlets had a very high volume of sales of coca

cola & its different brands. To maintain all the brands in the required

orientation Brand pack Order was very tough).

2. Many of the retailers were reluctant to keep there Visicoolers pure or

in the prescribed brand pack order without any genuine reason. They were

hesitant even in allowing the company appointed MD’s to pure their v/c’s.

They wanted to keep the products in the way convenient to them.

3. Each retail counter exhibited a different sales scenario. In some

shops the sales of R.G.B. Scaled heights whereas in others pet bottles

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were in high demand. Due to this influencing factor the retailers were

tentative to stock the prescribed product variants.

4. Time constraint-the campaign R.E.D was designed to be implemented

over a period spanning one year. Many aspects of the campaign are still

left unexplored as the project highlights the analysis for the work done for

14 weeks.

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CONCLUSION

RED is a worldwide project of COCA COLA Company. This project is

playing a very important role for the company. With the help of this project,

sale of the company has been increased. Because in this project there is

one market developer who has to ensure that Visicoolers must be on prime

location, all brands must available, all brands must displayed in brand order

i.e. COLOJK. All the activation elements like warm display rack, table top

rack, standees etc must be available at all outlets come under RED. All

these elements help the company in increasing the sales because

1. JO DIKHTA VO BIKTA HAI

2. JITNA DIKHTA HAI UTNA BIKTA HAI

3. JAISA DIKHTA HAI VAISA BIKTA HAI

Definitely when sales increase then profits also increases. With the help of

this project company has increased its sale in Kotdwar region and also

company can measure or check the performance of each franchises

working all over the world with COCA COLA COMPANY.

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BIBLIOGRPHY:

Books:

Marketing Management : Philip Kottler

Marketing Research : Bound, Stash & Others

“Booklet of RED”, COCA COLA INDIA

Websites:

www.coca-cola.com & www.Google.com

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