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Coca-Cola Summer Internship Report

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1. Summer Internship Repot2010AnamikaTarafdarM0907000079048753143250Kandhari Beverages Private LimitedAn Internship Report
Anamika

Tarafdar
M090700007
IN

PARTIAL FULFILMENT OF THE MASTERS

PROGRAM IN BUSINESSADMINISTRATION,
, H.P., INDIAACADEMIC SESSION 2009-11__________________________________

____________
PREFACE
In

summer the consumption of soft drinks is

more due to hot weather in this time chilled

weather is needed everywhere and

everybody irrespective of age difference. In

the market peoples not only need water, but

they want some taste too. Here comes the

need of soft drinks: it has become an

essential part of market as people like it in

addition to the bottles, now days packages

of soft drinks i.e. Tin cans, Pet packs of i.e.

Litters canisters and dispensers areintroduced to enhance the impact in sales.

The Maters curriculum is designed in


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such a way that student can grasp maximum

knowledge and can get practical exposure to

the corporate world in minimum possible

time. Business schools of today realize theimportance of practical knowledge over the

theoretical base.
The research report

is necessary for the partial fulfillment of

Masters curriculum and it provides an

opportunity to the student in understanding

the industry with special emphasis on the

development of skills in analyzing and

interpreting practical problems through theapplication of management theories and

techniques. It is a new platform of learning

through practical experience, which

incorporates survey and comparative

analysis. It gives the learner an opportunity

to relate the theory with the practice, to test

the validity and applicability of his classroom

learning against real life business

situations.
ACKNOWLEDGEMENTWe think if any of us honestly reflects on

who we are, how we got here, what we think

we might do well, and so forth, we discover

a debt to others that spans written history.

The work of some unknown person makes

our lives easier every day. We believe it'sappropriate to acknowledge all of these

unknown persons; but it is also necessary to


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acknowledge those people, we know have

directly shaped our lives and our work.I express my gratitude to the Kandhari

Beverages Private Limited (KBL) and Mr.Eesh Sethi, General Manager for giving me

an opportunity to work with them and make

the best out of my internship.
I

specially thank my trainers, Deputy General

Manager Mr. Sagoo for constantly guiding

and supporting me throughout the training

period. My heartfelt gratitude also goes out

to the staff and employees and specificallyto Miss Preeti Bain, Marketing Research

Executive at KBL for co-operating with me

and guiding me throughout the three months

of my internship period.
I thank my

school, Chitkara Business School for being

the constant driving force to put to practice,

the theoretical knowledge that I imparted

from the program. I thank the internship co-

coordinators, Dr. S.R.Taneja, Dr. Sandhir

Sharma and Dr. Santhosh for imparting their

wisdom on my thought process.
Last

but not of least importance, I take this

opportunity to thank my parents and friends

who have been with me and offered

emotional strength and moral support.
Table of Contents
Annexure A:

Overview of the Company
CHAPTER


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1:

INTRODUCTION

1.1: A brief insight-

The FMCG Industry inIndia.

1.2: A brief insight- The Beverage Industry in

India.
1.3:

Industry

Profile

....
CHAPTER 2: THE

COCA-COLA

COMPANY
2.1: History of Coca-

Cola. 2.2: Evolution of Coca-

Cola

2.3: Manifesto for

Growth

2.3.1:

Values

2.3.2:

Mission

2.3.3: Vision

for Sustainable

Growth

CHAPTER 3: COCA-COLA

PRODUCTS

3.1: Brands of Coca-

Cola


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CHAPTER 4: KANDHARI

BEVERAGES PRIVATE LIMITED
4.1:

Introduction to the

Company
4.2: Coca-Cola and

Franchisee

.
4.3: The

Company4.3.1: Manifesto for

Growth
4.3.2:

Management4.3.3: HumanResources..
4.3.4:

Kandhari Beverages Pvt.

Ltd..
4.3.5: Enrich Agro

Food Products Pvt.Ltd..4.3.6: Growth Record

4.4: Organization Structure

4.5:

Manufacturing Unit of

KBL

4.6: Manufacturing process

at

KBL

..
4.7: Business Plan model at

KBL

.
4.8: Distribution

Network

4.8.1: Distribution


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Routes

4.8.2: Distribution

System

4.8.3: Departments involved inthe Distribution process 4.9: SWOT Analysis of

KBL

4.9.1:

Strengths

.
4.9.2:

Weaknesses

4.9.3:Opportunities

4.9.4:

Threats

4.10:

Competitors to

KBL

CHAPTER 5:

FINANCIAL

ANALYSIS..

..
5.1: Financial

statements

CHAPTER 6:

STRATEGIC MANAGEMENT BY COCA-

COLA
CHAPTER 7:

FUTURE PLAN- THEROADMAP.

Annexure B: Summer Project


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Undertaken
CHAPTER 8 : THE

PROJECT

.. 8.1: ExecutiveSummary

.
8.2: Need and

Objective of the

Study

..
8.3: Critical Literature

Review

8.4: Research

Methodology
CHAPTER 9 :

INTERPRETATION AND

ANALYSIS.

9.1: Data

Interpretation

9.1.1: Graph 1:

Total number of Consumers based on Age

Group
9.1.2: Graph 2: Total

number of Consumers based on

Gender
9.1.3: Graph 3:

General reaction of Consumers about

MMPO.
9.1.4: Graph 4:

Reaction analyzed on basis of Age

Group.
9.1.5: Graph 5:

Reaction analyzed on basis ofgender.
9.2: End

Consumer


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Questionnaire

9.3: Q2

ANALYSIS

...
9.3.1: TrendAnalysis

9.3.2: Gap

Analysis

9.3.3:

Implementations

..
9.3.4:

Recommendations

CHAPTER10: SOME SPECIFIC

OBSERVATION

...
Annexure C: Market Research

Execution
CHAPTER 11: EXECUTIVE

SUMMARY...CHAPTER 12: SEGMENTATION

MODEL --

RED...CHAPTER 13: SAMPLING BY

CCI ...CHAPTER 14: MARKET IMPACT

TEAM...CHAPTER 15: OPEN REVIVE GROUP

(ORG ACCOUNT)...CHAPTER 16: PLACEMENT OF SGA INMARKETCHAPTER 17: SOME SPECIFIC


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OBSERVATION

...
CHAPTER 18: PROMOTIONAL

ACTIVITY......CONCLUSION.

......APPENDIX

..BIBLIOGRAPHY

EXECUTIVE SUMMARY
Coca-Cola,

the product that has given the world its best-known taste was born in Atlanta, Georgia,

on May 8, 1886. Coca-Cola Company is the

worlds leading manufacturer, marketer and

distributor of non-alcoholic beverage

concentrates and syrups, used to produce

nearly 400 beverage brands. It sells

beverage concentrates and syrups to

bottling and canning operators, distributors,

fountain retailers and fountain wholesalers.

Coca-Cola was first introduced by John Syth

Pemberton, a pharmacist, in the year 1886

in Atlanta, Georgia when he concocted

caramel-colored syrup in a three-legged

brass kettle in his backyard. He first

distributed the product by carrying it in a

jug down the street to Jacobs Pharmacy

and customers bought the drink for five


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cents at the soda fountain. Carbonated water was teamed with the

new syrup, whether by accident or

otherwise, producing a drink that wasproclaimed delicious and refreshing, a

theme that continues to echo today

wherever Coca-Cola is enjoyed. Coca-Cola

originated as a soda fountain beverage in

1886 selling for five cents a glass. Early

growth was impressive, but it was only when

a strong bottling system developed that

Coca-Cola became the world-famous brandit is today. Coca-Cola was the leading soft

drink brand in India until 1977, when it left

rather than reveal its formula to the

Government and reduce its equity stake as

required under the Foreign Regulation Act

(FERA) which governed the operations of

foreign companies in India.
In the new

liberalized and deregulated environment in

1993, Coca-Cola made its re-entry into India

through one of its largest bottler, KBL, the

North Indian bottling arm of the Coca-Cola

Company.
The main objective of this

study lies in understanding the organization

and studying the market of the SSD

(sparkling soft drinks) brands by Coca-Colaand understanding the consumers

perception and opinion about the products,


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with more inclination towards the study on

market of juices and Kinley water & soda,

and the respective competitors analysis. This report will also give insight to thecompanys norms to maintain standards, the

production process, their strategies to keep

up with their retailers, companys approach

towards the sales of SSD and most

importantly this report will provide an

opportunity to know the psychographic

needs of the retailers which in turn shows

the company an avenue to create a goodfuture plan. This report will provide detailed

information about prevailing market

competition and thus prepare itself to meet

the market challenge by making adjustment

in its new strategy and promotional activity.

The project begins with in-depth

interview with the owner of retail outlets, as

primary source, to extract the reality on

ground level about retailers psychology as

our distributor and competitors position and

strategy. The third need was to know the

psychographic needs of our consumers,

which was achieved by

feedback/questionnaire process among 100

to 150 youngsters. The conclusion drawnfrom the quantative analysis of data via

graphs and open ended feedbacks, are


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represented in under the tag of gap

analysis/grievances and

implications/suggestions.
Chapter 1:

INTRODUCTION
1.1: A brief insight-The FMCG Industry in India
Fast

Moving Consumer Goods (FMCG), also

known as Consumer Packaged Goods

(CPG) are products that have a quick

turnover and relatively low cost. Consumers

generally put less thought into the purchase

of FMCG than they do for other products.The Indian FMCG industry witnessedsignificant 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 newdomestic and foreign products through

different media, such as television and the


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Internet. Apart from this, social changes

such as increase in the number of nuclear

families and the growing number of working

couples resulting in increased spendingpower also contributed to the increase in the

Indian consumers' personal consumption.

The realization of the customer's growing

awareness and the need to meet changing

requirements and preferences on account of

changing lifestyles required the FMCG

producing companies to formulate customer-

centric strategies. These changes had apositive impact, leading to the rapid growth

in the FMCG industry. Increased availability

of retail space, rapid urbanization, and

qualified manpower also boosted the growth

of the organized retailing sector. 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 economysectors, FMCG share float in a steady

manner irrespective of global market dip,


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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 sectorin 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.
TheFMCG sector consists of the following

categories:
Personal Care- Oral care,

Hair care, Wash (Soaps), Cosmetics and

Toiletries, Deodorants and Perfumes, Paper

products (Tissues, Diapers, Sanitary

products) and Shoe care; the major players

being; Hindustan Lever Limited, Godrej

Soaps, Colgate, Marico, Dabur and Procter

& Gamble.
Household Care- Fabric

wash (Laundry soaps and synthetic

detergents), Household cleaners

(Dish/Utensil/Floor/Toilet cleaners), Air

fresheners, Insecticides and Mosquito

repellants, Metal polish and Furniture polish;

the major players being; Hindustan LeverLimited, Nirma and Ricket Colman.Branded and Packaged foods and


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beverages- Health beverages, Soft drinks,

Staples/Cereals, Bakery products (Biscuits,

Breads, Cakes), Snack foods, Chocolates,

Ice-creams, Tea, Coffee, Processed fruits,Processed vegetables, Processed meat,

Branded flour, Bottled water, Branded rice,

Branded sugar, Juices; the major players

being; Hindustan Lever Limited, Nestle,

Coca-Cola, Cadbury, Pepsi and Dabur.Spirits and Tobacco- the major players

being; ITC, Godfrey, Philips and UB.1.2: A

brief insight- The Beverage Industry inIndia
In India, beverages form an

important part of the lives of people. It is an

industry, in which the players constantly

innovate, in order to come up with better

products to gain more consumers and

satisfy the existing consumers. BEVERAGESAlcoholicNon-

AlcoholicCarbonatedNon-

CarbonatedColaNon-ColaNon-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 andsports beverages.
Natural and

Synthetic beverages.
In-home


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consumption and out of home on premises

consumption.
Age wise segmentation

i.e. beverages for kids, for adults and for

senior citizens.
Segmentation based onthe amount of consumption i.e. high levels of

consumption and low levels of

consumption.
If the behavioral patterns

of consumers in India are closely noticed, it

could be observed that consumers perceive

beverages in two different ways i.e.

beverages are a luxury and that beverages

have to be consumed occasionally. Thesetwo perceptions are the biggest challenges

faced by the beverage industry. In order to

leverage the beverage industry, it is

important to address this issue so as to

encourage regular consumption as well as

and to make the industry more affordable.

Soft drinks witnesses healthy growth

in India
Soft drinks recorded robust

double digit off-trade value growth in 2009,

which was higher than that witnessed in

2008. Bottled water and fruit/vegetable juice

continued to grow strongly as more

consumers turned to these products in the

search of healthier options. Carbonates also

witnessed good sales growth as the longsummer helped to fuel sales. Energy drinks

has witnessed a slowdown in sales growth


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as its is a premium priced product type and

therefore not considered a necessity.

Importantly, more consumers refrained from

spending on non-essential items in the wakeof the economic downturn.
Soft drinks

is expected to record healthy sales growth in

the forecast period
Soft drinks is

expected to witness a healthy double-digit

total volume CAGR growth over the forecast

period. As consumer awareness and

understanding of the variety of soft drinks

increases and as manufacturers continue tobe innovative, soft drinks is expected to

perform well. Products on the health and

wellness platform and niche categories can

expect to see good sales growth in the

forecast period.
Chapter 2: THE

COCA-COLA COMPANYHeadquarters: One Coca-Cola Plaza

Atlanta, GA 30313
Employees: 71,000

CEO: Neville Isdell
Stock

Symbol: KO
Website:

http://www.Coca-Cola.com/
Coca-Cola

is the world's leading beverage company.

The company is the world's leading

manufacturer, marketer, and distributor of

nonalcoholic beverage concentrates andsyrups, used to produce nearly 400

beverage brands. The company makes and


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distributes sodas, waters, fruit juice, teas

and coffees and energy drinks. Through the

world's largest beverage distribution system,

consumers in more than 200 countries drinkthe company's beverages at a rate

exceeding 1.5 billion servings each day.

Major brands include Coke, Diet Coke,

Sprite, Bacardi, A&W, Minute Maid, Dasani,

Nestea, Powerade and Hi C.
2.1:

History of Coca-Cola
Coca-Cola was

invented by Doctor John Pemberton a

pharmacist from Atlanta Georgia in May of1886. John Pemberton concocted the Coca-

Cola formula in a three legged brass kettle;

all this was done in his backyard. The name

Coca-Cola was actually given to John

Pemberton by his bookkeeper Frank

Robinson had excellent penmanship. He

first scripted " Coca-Cola" into the flowing

letters which has become the famous logo

we know and love today.
The soft drink

was first sold to the public at the soda

fountain in Jacob's Pharmacy in Atlanta on

May 8, 1886. About nine servings of the soft

drink were sold each day. Sales for that first

year added up to a total of about $50. The

funny thing was that it cost John Pembertonover $70 in expanses, so the first year of

sales were a loss. Until 1905, the soft drink,


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marketed as a tonic, contained extracts of

cocaine as well as the caffeine-rich kola nut.

In 1887, another Atlanta pharmacist and

businessman, Asa Candler bought theformula for Coca-Cola from inventor John

Pemberton for $2,300.
By the late

1890s, Coca-Cola was one of America's

most popular fountain drinks; Candler's

aggressive marketing of the product takes

credit for that. With Asa Candler, now at the

helm, the Coca-Cola Company increased

syrup sales by over 4000% between 1890and 1900.
Advertising was an

important factor in John Pemberton and Asa

Candler's success and by the turn of the

century, the drink was sold across the

United States and Canada. Coca-Cola

began selling syrup to independent bottling

companies licensed to sell the drink. Still

today, the US soft drink industry is

organized on this principle
2.2:

Evolution of Coca-Cola
Coca-Cola





Coca-Cola became the world-famous brandit is today.
1894 A modest start for a

Bold Idea
In a candy store in


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Vicksburg, Mississippi, brisk sales of the

new fountain beverage called Coca-Cola

impressed the store's owner, Joseph A.

Biedenharn. He began bottling Coca-Cola tosell, using a common glass bottle called a

Hutchinson. Biedenharn sent a case to Asa

Griggs Candler, who owned the Company.

Candler thanked him but took no action.

One of his nephews already had urged that

Coca-Cola be bottled, but Candler focused

on fountain sales.
1899 The first

bottling agreement
445770046990Twoyoung attorneys from Chattanooga,

Tennessee believed they could build a

business around bottling Coca-Cola. In a

meeting with Candler, Benjamin F. Thomas

and Joseph B. Whitehead obtained

exclusive rights to bottle Coca-Cola across

most of the United States (specifically

excluding Vicksburg) -- for the sum of one

dollar. A third Chattanooga lawyer, John T.

Lupton, soon joined their venture.1900-1909 Rapid growth
The

three pioneer bottlers divided the country

into territories and sold bottling rights to local

entrepreneurs. Their efforts were boosted by

major progress in bottling technology, whichimproved efficiency and product quality. By

1909, nearly 400 Coca-Cola bottling plants


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were operating, most of them family-owned

businesses. Some were open only during

hot-weather months when demand was

high.
1916 Birth of the contourbottle
014605Bottlers worried that the

straight-sided bottle for Coca-Cola was

easily confused with imitators. A group

representing the Company and

4591050379730bottlers asked glass

manufacturers to offer ideas for a distinctive

bottle. A design from the Root Glass

Company of Terre Haute, Indiana wonenthusiastic approval in 1915 and was

introduced in 1916. The contour bottle

became one of the few packages ever

granted trademark status by the U.S. Patent

Office. Today, it's one of the most

recognized icons in the world - even in the

dark!
1920s Bottling overtakes

fountain sales
As the 1920s dawned,

more than 1,000 Coca-Cola bottlers were

operating in the U.S. Their ideas and zeal

fueled steady growth. Six-bottle cartons

were a huge hit after their 1923 introduction.

A few years later, open-top metal coolers

became the forerunners of automated

vending machines. By the end of the 1920s,bottle sales of Coca-Cola exceeded fountain

sales.
4114800723901920s and 30s


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International expansion
Led by

longtime Company leader Robert W.

Woodruff, chief executive officer and

chairman of the Board, the Company begana major push to establish bottling operations

outside the U.S. Plants were opened in

France, Guatemala, Honduras, Mexico,

Belgium, Italy, Peru, Spain, Australia and

South Africa. By the time World War II

began, Coca-Cola was being bottled in 44

countries.
088901940s Post-war

growth
During the war, 64 bottlingplants were set up around the world to

supply the troops. This followed an urgent

request for bottling equipment and materials

from General Eisenhower's base in North

Africa. Many of these war-time plants were

later converted to civilian use, permanently

enlarging the bottling system and

accelerating the growth of the Company's

worldwide business.41148003321051950s Packaging

innovations
For the first time,

consumers had choices of Coca-Cola

package size and type -- the traditional 6.5-

ounce contour bottle, or larger servings

including 10-, 12- and 26-ounce versions.Cans were also introduced, becoming

generally available in 1960.
1960s


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New brands introduced
Following

Fanta in the 1950s, Sprite, Minute

Maid, Fresca and TaB joined brand

Coca-Cola in the 1960s. Mr. Pibb andMello Yello were added in the 1970s. The

1980s brought diet Coke and Cherry

Coke, followed by POWERADE and

DASANI in the 1990s. Today hundreds of

other brands are offered to meet consumer

preferences in local markets around the

world.
1970s and 80s Consolidation

to serve customers
As technology ledto a global economy, the retailers who sold

Coca-Cola merged and evolved into

international mega-chains. Such customers

required a new approach. In response,

many small and medium-size bottlers

consolidated to better serve giant

international customers. The Company

encouraged and invested in a number of

bottler consolidations to assure that its

largest bottling partners would have capacity

to lead the system in working with global

retailers.
1990s New and growing

markets
Political and economic

changes opened vast markets that were

closed or underdeveloped for decades. Afterthe fall of the Berlin Wall, the Company

invested heavily to build plants in Eastern


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Europe. And as the century closed, more

than $1.5 billion was committed to new

bottling facilities in Africa.
21st

Century
The Coca-Cola bottling systemgrew up with roots deeply planted in local

communities. This heritage serves the

Company well today as people seek brands

that honor local identity and the

distinctiveness of local markets. As was true

a century ago, strong locally based

relationships between Coca-Cola bottlers,

customers and communities are thefoundation on which the entire business

grows.
2001 launched the new

fridge pack in USA a thinner longer 12 pack

design
2005 innovative aluminum

contour bottles introduced commonly called

M5 as the magnificent five bottles., Coca-

Cola zero a zero calorie Coca-Cola with real

Coca-Cola taste launched.
2006

Coca-Cola turns 120. Launches the every

drop counts campaign to make the

consumers remind of the variety of products

Coca-Cola offers.
2007 launches

the PET bottle which uses 5% less plastic

than the other PET bottles opens up new

world of Coca-Cola in Atlanta Georgia onMay 24th.
2.3: Manifesto for Growth The world is changing all around us. To


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continue to thrive as a business over the

next ten years and beyond, we must look

ahead, understand the trends and forces

that will shape our business in the future andmove swiftly to prepare for what's to come.

We must get ready for tomorrow today.

That's what our 2020 Vision is all about. It

creates a long-term destination for our

business and provides us with a " Roadmap"

for winning together with our bottling

partners.
2.3.1: Our Mission
Our

Roadmap starts with our mission, which isenduring. It declares our purpose as a

company and serves as the standard

against which we weigh our actions and

decisions.
To refresh the world...To inspire moments of optimism and

happiness...
To create value and make

a difference.
2.3.2: Our Vision Our vision serves as the framework for our

Roadmap and guides every aspect of our

business by describing what we need to

accomplish in order to continue achieving

sustainable, quality growth.
People:

Be a great place to work where people are

inspired to be the best they can be. Portfolio: Bring to the world a portfolio ofquality beverage brands that anticipate and

satisfy people's desires and needs.


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/>Partners: Nurture a winning network of

customers and suppliers, together we create

mutual, enduring value.
Planet: Be a

responsible citizen that makes a differenceby helping build and support sustainable

communities.
Profit: Maximize long-

term return to shareowners while being

mindful of our overall responsibilities. Productivity: Be a highly effective, lean

and fast-moving organization.
2.3.3:

Our Winning CultureOur Winning Culture

defines the attitudes and behaviors that willbe required of us to make our 2020 Vision a

reality.
2.3.4: Live Our Values Our

values serve as a compass for our actions

and describe how we behave in the world.

Leadership: The courage to shape a

better future
Collaboration: Leverage

collective genius
Integrity: Be realAccountability: If it is to be, it's up to mePassion: Committed in heart and mind Diversity: As inclusive as our brandsQuality: What we do, we do well2.3.5: Focus on the Market
Focus on

needs of our consumers, customers and

franchise partners
Get out into the

market and listen, observe and learn
Possess a world view
Focus on

execution in the marketplace every day


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/>Be insatiably curious
2.3.6: Work

Smart
Act with urgency.
Remain

responsive to change.
Have the

courage to change course when needed.
Remain constructively discontent.Work efficiently.
2.3.7: Act Like

Owners
Be accountable for our actions

and inactions.
Steward system assets

and focus on building value.
Reward

our people for taking risks and finding better

ways to solve problems.
Learn from

our outcomes -- what worked and whatdidnt.
2.3.8: Be the Brand Inspire

creativity, passion, optimism and fun.

Chapter 3: COCA-COLA

PRODUCTS
The Coca-Cola Company

offers a wide range of products to the

customers including beverages, fruit juices

and bottled mineral water. The Company is

always looking to innovate and come up

with, either complete new products or new

ways to bottle or pack the existing drinks.

3.1: Brands of Coca-Cola 37433251993900015875Coca-Cola Zero

has been one of the most successful

product launch hes in Coca-Colas history.

In 2007, Coca-Colas sold nearly 450 million

cases globally. Put into perspective, that's

roughly the same size as Coca-Colas total


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business in the Philippines, one of our top

15 markets. As of September 2008, Coca-

Cola Zero is available in more than 100

countries.
2933700365125EnergyDrinks
For those with a high-intensity

approach to life, Coca-Colas brands of

Energy Drinks contain ingredients such as

ginseng extract, guarana extract, caffeine

and B vitamins.
29781536195
-

12382545085Juices/Juice Drinks
We

bring innovation to the goodness of juice in

Coca-Colas more than 20 juice and juicedrink brands, offering both adults and

children nutritious, refreshing and flavorful

beverages.
-85725142875171450-

170815Soft Drinks
Coca-Colas dozens

of soft drink brands provide flavor and

refreshment in a variety of choices. From the

original Coca-Cola to most recent

introductions, soft drinks from The Coca-

Cola Company are both icons and

innovators in the beverage industry.3606165-1905002857500160020Sports

Drinks
Carbohydrates, fluids, and

electrolytes team together in Coca-Colas

Sports Drinks, providing rapid hydration and

terrific taste for fitness-seekers at anylevel.
Tea and CoffeeBottled and

canned teas and coffees provide consumers'


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favorite drinks in convenient take-anywhere

packaging, satisfying both traditional tea

drinkers and today's growing coffee

culture.314325358775
-134620165102922270318770Water
Smooth and

essential, our Waters and Water Beverages

offer hydration in its purest form.423545180340
-181546597790Other

Drinks
So much more than soft drinks.

Coca-Colas brands also include milk

products, soup, and more so you canchoose a Coca-Cola Company product

anytime, anywhere for nutrition, refreshment

or other needs.
Coca-Cola IndiaIn the Cola Section:

In the

Lemon section:

In the Orange

section:

In the Juice section:
In the Soda Water and Bottled

Mineral Water section:

In the

Tonic Water section:

In the Tea

and Coffee section:
Chapter 4:

KANDHARI BEVERAGES PVT. LTD.4.1: Introduction to the CompanyCoca-Cola was the leading soft drink

brand in India until 1977, when it left rather

than reveal its formula to the Governmentand reduce its equity stake as required

under the Foreign Regulation Act (FERA)


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which governed the operations of foreign

companies in India. Coca-Cola re-entered

the Indian market on 26th October 1993

after a gap of 16 years, with its launch inAgra. An agreement with the Parle Group

gave the Company instant ownership of the

top soft drink brands of the nation. With

access to 53 of Parles plants and a well set

bottling network, an excellent base for rapid

introduction of the Companys International

brands was formed. The Coca-Cola

Company acquired soft drink brands likeThumps Up, Goldspot, Limca, Maaza, which

were floated by Parle, as these products had

achieved a strong consumer base and

formed a strong brand image in Indian

market during the re-entry of Coca-Cola in

1993.Thus these products became a part of

range of products of the Coca-Cola

Company.
left0KANDHARI GROUP

was established in 1967 by Late Mr. Teja

Singh Kandhari, is presently a progressive

business house in India. The groups first

venture was a bottling unit as a franchisee of

PARLEs soft drink manufacturing Gold

Spot under license from PARLE

established at Amritsar in the north Indianstate of Punjab.Kandhari Beverages Ltd is

among Coca-Cola India's top 4 franchisee


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bottlers.Over a period of time, the Group

ventured deep into Aerated Water business

and expanded its scope of operations to

other Indian states including Punjab,Haryana, Chandigarh and Himachal

Pradesh.
left0In 1993, the world

renowned soft drink giant - Coca-Cola

entered India and bought over PARLE brand

of soft drink products, being one of the star

bottlers of PARLE the Group switched to

manufacturing, bottling & marketing of Coke

brand of soft drink products.
4.2: Coca-Cola and Franchisee
Coca-Cola is

made up of 7000 local employees, 500

managers, over 60 manufacturing locations,

27 Company Owned Bottling Operations

(COBO), 17 Franchisee Owned Bottling

Operations (FOBO) and a network of 29

Contract Packers that facilitate the

manufacture process of a range of products

for the company. It also has a supporting

distribution network consisting of 700,000

retail outlets and 8000 distributors. Almost

all goods and services required to cater to

the Indian market are made locally, with help

of technology and skills within the Company.

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

INDIA
4.3: The Company
4.3.1:


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MANIFESTO FOR GROWTH
OUR

MISSION In line with our main partner Coca-

Cola we wish to refresh the world and in

addition we further aim to create value andmake a difference by making our

environment a cleaner and better place to

live for our future generations. OUR VISION

Our Company vision as was established by

the founder of our Group remains to provide

the people that work in the group, be it the

owners or managers a great place to work

where people are inspired to be the bestthey can be and work with quality brands

and Partners to maximize profit and

productivity.
4.3.2: MANAGEMENTMr. Nirmal Singh Kandhari, Group

Chairman has been a pioneer figure in

Indian soft drink industry. He was

instrumental in establishing Kandhari Group

as a soft drink manufacturing giant with a

number of bottling units in Northern India.Mr.

Jaspal Singh Kandhari, Managing

Director, has been steering the Group to

new heights by redefining business strategy

of the family business. Mr.Jaspal Kandhari is

Mr. Nirmal Singh Kandharis younger

brother.Mr.Varinder Pal Singh Kandhari,Executive Director looks after the day to day

operations of the group. He is the son of Mr.


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Nirmal Singh.
4.3.3: HUMAN

RESOURCE
The Kandhari Group has

more than 3000+ employees, which include

around 300 professionals with various skillset and professional competence in the

various industries they are handling. The

Group has different project execution ,

maintenance teams for different application

areas in Information Technology Industry.

4.3.4: KANDHARI BEVERAGES PVT.

LTD.
Kandhari Beverages Pvt. Ltd,

Nabipur, Punjab and Baddi, HimachalPradeshleft0The Company is engaged in the

business of manufacturing, marketing and

distribution of aerated water under franchise

agreement with the Coca-Cola Company,

USA. The Company has two mega

greenfield bottling plants for filling soft drinks

located at Village Nabipur, District

Fatehagarh Sahib (Punjab) and Village

Katha, Baddi, District Solan (HP). Present

gross turnover of the company is approx Rs.

190.00 Crores. The company has also

entered the power sector by setting up a

6.25 MW Wind Mill project having 5 units in

the State of Maharashtra.
4.3.5:

ENRICH AGRO FOOD PRODUCTS PVT.LTD.
Enrich Agro Food Products Pvt.

Ltd., Gurgaon, HaryanaThe Company is an


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production along with financial discipline,

leading to consistently increasing sales

graph and an unblemished track record of

dealings with FIs/banks. Although soft drinkbusiness still remains core activity of the

Group, yet sensing increased focus on

industrial activity in India, the Group has

ventured out into other infrastructural

projects of prime importance like Power &

Energy generation from non-conventional

resources and mining.26479503384554.4: OrganisationalStructure
285750111125ORGANIZATION STRUCTURE IN COCA-

COLA, INIDA
ORGANIZATION

STRUCTURE IN KANDHARI BVG PVT

LTD.
4.5: Manufacturing
The

Company has two mega greenfield bottling

plants for filling soft drinks located at Village

Nabipur, District Fatehagarh Sahib (Punjab)

and Village Katha, Baddi, District Solan

(HP).
17145360045Manufacturing

Process
Processing ProductionSoft drink bottling or manufacturing

involves five major processes, each with its

own safety issues that must be evaluated

and controlled:
1. Treating water.
2. Compounding ingredients.
3.

Carbonating product.
4. Filling


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product.
5. Packaging.
The

production of soft drink begins with the

preparation or batching of thick, high-solid

syrup. This syrup is made in a stainlesssteel tank by the blending of a flavored

concrete containing various artificial and

natural flavours (the concentrate is

manufactured by and purchased from the

parent company by the individual bottlers),

sodium benzoate (preservative), sugar, and

treated water. This syrup is checked by

quality control for conformance toestablished company standards and then

pumped to the proportioner in the filling

area. At the proportioner, the syrup and

treated water pass through pre-set orifices

at a constant rate of flow and are blended at

a ratio of approximately 1 part syrup to 5

parts of treated water. The product is then

pumped to the chiller/carbonator to produce

the final soft drink of the proper carbonation

and fed to the can or bottle filler. During the

carbonating process the soft drink is chilled

to approximately 2-5C to prevent foaming

during filing process.

Soft drink

canning line showing filling operationsReturnable bottles to be filled are usuallyhand fed by the case onto a conveyer which

carries the cases of empty bottles to


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uncaser. The uncaser removes the bottles

from the cases and places them onto the

empty bottle conveyer. From the uncaser,

the conveyor carries the bottles to the bottlewasher where they are immersed in a 3-5%

hot caustic solution for a specified time

period and rinsed with fresh water prior to

their discharge from the bottle washer. Prior

to entering the filler, the bottles are

inspected either visually by employees or

electronically by a light scanner to insure no

foreign objects or debris is left in the bottle.Non-returnable bottles and cans pass

through a rinser which consists of a series of

cold water spray. These sprays remove

loose dust and debris from inside and

outside of the containers.

Eight-

packs of 2-litre soft drink plastic bottles on

the way to an automatic palletizer
The

individual bottles are then filled, discharged

from the filler, and conveyed to the

capper/closure machine where a crimp cap

or twist-off type closure is applied. The

containers are then coded an then passed

through the bottle warmer. The warm water

sprays inside the warmer to bring the

temperature of the product to approximateroom temperature. The purpose of the

warmer is to avoid excessive condensation


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which would form on the containers exterior

if they were allowed to gradually warm to

room temperature. Any condensation on the

containers exterior would cause problemsfor the rest of the packaging involved,

including label application and fiber carton

packaging.
After the bottles are

discharged from the warmer they are

conveyed to the labeler and then to the case

packer where the filled bottles are re-

packaged into cases. The cases of product

travel to the palletiser which automaticallystacks the cases on a pallet for storage and

shipping.
4.5: Business Plan model at

KBL
Let us look at the sequential

system of the distribution network right from

the beginning.
Concentrate / syrup

from CCIBaddi plantNabipur plantPlant ware housePlant ware houseRegional depot house of Himachal

Pradesh.Regional depot house of Punjab

and Haryana.
Imports of canisters`
Distribution Routes to Retail

ShelfDistribution Routes to Retail ShelfConsumer
4.6: Distribution

Network
KBPL has a wide and well

managed network of salesmen appointed fortaking up the responsibility of distribution of

products to diverse parts of the cities. The


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distribution channels are constructed in such

a way that the demand of customers is

fulfilled at the right place and the right time

when it is needed by them.
A typicaldistribution chain at KBPL would be: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 leadsto low costs, higher sales and higher

efficiency thereby leading to higher profits to

the firm.
4.6.1: Distribution RoutesThe various routes formulated by KBPL for

distribution of products are as follows:Key Accounts: The customers in this

category collectively contribute a large

chunk of the total sales of the Company. It

basically consists of organizations that buy

large quantities of a product in one single

transaction. The Company provides goods

to these customers on credit, payments

being made by them after a certain period of

time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants,hotels, Corporate houses etc.
Future

Consumption: This route consists of outlets


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of Coca-Cola products, wherein a

considerable amount of stock is kept in

order to use for future consumption. The

stock does not exhaust within a day or two,instead as and when required stocks are

stacked up by them so as to avoid shortage

or non-availability of the product.

Examples: Departmental stores, Super

markets etc.
Immediate Consumption:

The outlets in this route are those which

require stocks on a daily basis. The stocks

of products in these outlets are not storedfor future use instead, are exhausted on the

same day and might run a little into the next

day i.e. the products are consumed at a fast

pace.
Examples: Small sized bars

and restaurants, educational institutions etc.

General: Under this route, all the

outlets that come in a particular area or an

area along with its neighboring areas are

catered to. The consumption period is not

taken into consideration in this particular

route.4.6.2: Distribution System
The

system adopted by the Chandigarh Bottling

Company (CBC) to distribute its products in

the city is, direct on-spot delivery on on-spot

demand by the retail outlet.
Thesalesman hired by the company is

accompanied by an assistant and a Market


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Developer (MD). They carry all the skus in

the goods carrying truck and are assigned a

specific route, on which they have to deliver

all the products to all the retail outlets thatfalls along that route, and deliver as per the

demand on-spot and get paid in cash

(exceptions are there).
Direct

distribution: In direct distribution, the bottling

unit or the bottler partner has direct control

over the activities of sales, delivery, and

merchandising and local account

management at the store level.
Indirectdistribution: In indirect distribution, an

organization which is not part of the Coca-

Cola system has control on one or more of

the distribution elements (Sales, delivery,

merchandising and local account

management)
Merchandising:

Merchandising means communication with

the consumer at the point of purchase to

convey product benefit, value and Quality.

Sales people and delivery personnel both

have this responsibility. In certain locations

special teams who go into business

locations to specifically merchandise our

products.
4.6.3: Departments involved

in the Distribution process
TheDistribution process mainly consists of three

departments:
Distribution Department:


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It appoints distributors and establishes a

distribution network, processes approved

sale orders and prepares invoices, arranges

logistics and ship products, co-ordinateswith distributors for collections and monitors

distribution stocks and their set-up.Finance Department: It checks credit limits

and approves sales orders in compliance

with the credit policy followed by the firm,

records collections from distributors,

periodically reconciles outstanding balances

from distributors, obtains balanceconfirmation from distributors and follows up

outstanding balances.
Shipping or

Warehousing Department: It dispatches

goods as per approved by order, ensures

that stocks are dispatched on a FIFO basis,

ensures physical control over load out area

and updates warehouse stock records in a

timely manner.
4.7: SWOT Analysis of

KBL
4.7.1: StrengthsDISTRIBUTION NETWORK: The

Company has a strong and reliable

distribution network. The network is formed

on the basis of the time of consumption and

the amount of sales yielded by a particular

customer in one transaction. It has adistribution network consisting of a number

of efficient salesmen, 26,000 retail outlets.


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The distribution fleet includes different

modes of distribution, from contracted

transportation for goods carrying task of 10-

tonne trucks to open-bay three wheelers thatcan navigate through narrow alleyways of

Indian cities and trademarked three-

wheelers.
STRONG BRANDS: The

products produced and marketed by the

Company have a strong brand image.

People all around the world recognize the

brands marketed by the Company. Strong

brand names like Sprite, Fanta, Limca,Thums Up and Maaza add up to the brand

name of the Coca-Cola Company as a

whole. The red and white Coca-Cola is one

of the very few things that are recognized by

people all over the world. Coca-Cola has

been named the world's top brand for a

fourth consecutive year in a survey by

consultancy Interbrand. It was estimated

that the Coca-Cola brand was worth

$70.45billion.
LOW COST OF

OPERATIONS: The production, marketing

and distribution systems are very efficient

due to forward planning and maintenance of

consistency of operations which minimizes

wastage of both time and resources leads tolowering of costs.
4.7.2:

Weaknesses
LOW EXPORT LEVELS:


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The brands produced by the company are

brands produced worldwide thereby making

the export levels very low. Over that even

domestic demands are sometimes gounfulfilled. 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, includingmultinational giants PepsiCo and Coca-

Cola, contained toxins including lindane,

DDT, malathion and chlorpyrifos- pesticides

that can contribute to cancer and a

breakdown of the immune system.

Therefore, people abroad, are apprehensive

about Coca-Cola products from India.IMPORT FROM OTHER

MANUFACTURERS: Import of few particular

packagings from other manufacturers ads a

cost to the business, like importing of cans

from Pune and water from Delhi etc. But this

problem will be soon removed with the

establishment of new bottling line in

Saha.
4.7.3: Opportunities
LARGE DOMESTIC MARKETS: The

domestic market for the products of the


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Company is very high as compared to any

other soft drink manufacturer. Coca-Cola

India claims a 58 per cent share of the soft

drinks market; this includes a 42 per centshare of the cola market. Other products

account for 16 per cent market share, chiefly

led by Limca.
HIGHER INCOME

AMONG PEOPLE: Development of India as

a whole has lead to an increase in the per

capita income thereby causing an increase

in disposable income. Unlike olden times,

people now have the power of buying goodsof their choice without having to worry much

about the flow of their income. The beverage

industry can take advantage of such a

situation and enhance their sales. 4.7.4: Threats
IMPORTS: As India is

developing at a fast pace, the per capita

income has increased over the years and a

majority of the people are educated, the

export levels have gone high. People

understand trade to a large extent and the

demand for foreign goods has increased

over the years. If consumers shift onto

imported beverages rather than have

beverages manufactured within the country,

it could pose a threat to the Indian beverageindustry as a whole in turn affecting the

sales of the Company.
SLOWDOWN


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IN RURAL DEMAND: The rural market may

be alluring but it is not without its problems:

Low per capita disposable incomes that is

half the urban disposable income; largenumber of daily wage earners, acute

dependence on the vagaries of the

monsoon; seasonal consumption linked to

harvests and festivals and special

occasions; poor roads; power problems; and

inaccessibility to conventional advertising

media. All these problems might lead to a

slowdown in the demand for the companysproducts.
4.8: Products and Packaging

Details
Though the Coca-Cola

Company owns the innovation of 3,300

drinks including beverages, tea and coffee,

fresh juices, packaged water and energy

drinks but, all of them are not dominant at

every place, may be due to cultural,

geographic, demographic, production and

demand limitations. Kandhari Beverages

Pvt. Ltd. In association with The Coca-Cola

Company manufactures the following

mentioned brands and in mentioned

packagings.
The worlds favourite

drink. The worlds most valuable brand. The

most recognizable word across the worldafter OK. Coca-Cola has a remarkable

heritage. From a humble beginning in 1886,


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its now the flagship brand of the largest

manufacturer, marketer and distributor of

non-alcoholic beverages in the world.Coca-Cola returned to India in 1992 andover the past fourteen years has enthralled

consumers in India by connecting with

passions of India- cricket, movies, music

and food. Coca-Cola has been very strongly

associated with cricket, sponsoring the world

cup in 1996 and various other tournaments,

including the Coca-Cola Cup in Sharjah in

the late 90s. Coca-Colas advertisingcampaigns Jo Chaho Ho Jaye and Life Ho

To Aisi were very popular and had entered

the youths vocabulary. In 2002, Coca-Cola

launched its iconic campaign Thanda

Matlab Coca-Cola which sky-rocketed the

brand to make it Indias favourite soft-drink

brand. In 2003, Coke was made available

for just Rs.5 across the country and this

pricing initiative together with enhanced

distribution ensured that all brands in the

portfolio grew exponentially.
Coca-Cola

had signed on various celebrities including

movie stars such as Karishma Kapoor,

Cricketer such as Srinath, Sourav Ganguly,

southern celebrities like Vijay in the past andtoday, its brand ambassador is Amir Khan.

Strong Cola Taste, Macho Personality.


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Thums Up is a leading sparkling soft drink

and most trusted brand in India. Originally

introduced in 1977, Thums Up was acquired

by The Coca-Cola Company in 1993.
Thums Up is known for its strong, fizzy

taste and its confident, mature and uniquely

masculine attitude. This brand clearly seeks

to separate the men from boys.Worldwide Sprite is ranked as the No.4

soft drink & is sold in more than 190

countries. In India, Sprite was launched in

the year 1999 & today it has grown to beone of the fastest growing soft drinks,

leading the Clear lime category.
Today

Sprite is perceived as a youth icon. Why?

With a strong appeal to the youth, Sprite has

stood for straight forward and honest

attitude. Its clear crisp refreshing taste

encourages the todays youth to trust their

instincts, influence them to be true to who

they are and to obey their thirst.

Internationally, Fanta the orange drink of

The Coca-Cola Company, is seen as one of

the favourite drinks since 1940s. Fanta

entered Indian market in the year 1993.

Over the years Fanta has occupied a strong

market place and identified as The Fun

Catalyst.
Perceived as a fun youth

brand, Fanta stands for its vibrant color,


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tempting taste and tingling bubbles that not

just uplifts feelings but also helps free spirit

thus encouraging one to indulge in the

moment. This positive imagery is associatedwith happy, cheerful and special time with

friends.
Lime n Lemoni Limca can

cast a tangy refreshing spell on anyone,

anywhere. Derived from Nimbu +Jaisa

hence LimeSa, Limca has lived up to its

promise of refreshment and has been the

original thirst choice of millions of

consumers for 3 decades. Born in 1971,Limca has remained unchallenged as the

No.1 Sparkling Drink in the Cloudy lemon

Segment. The success formula is the sharp

fizz and lemoni bite combined with the single

minded proposition of the brand as the

provider of Freshness.
Limcas

Freshness is like no other- lime n lemoni

Limca refreshness, reenergizes, rejunevates

not just your body but also your

emotions.The new Limca campaign takes

the first step towards taking the earlier

water-like freshness idea to sn emotional

platform relevant for the young-adult, who

pursue success and achievement, but still

want freshness to rejuvenate the fun,energy, excitement and romance in their

lives. Freshness of Emotions idea


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stemmed from the insight about our

consumer- the desire to rejuvenate her/his

emotions which are constantly being dulled

in routine pursuit of success.
MinuteMaid- A 62 year success story. The history

of the Minute Maid brand goes as far as

back as 1945 when the Florida Foods

Corporation developed orange juice powder.

The company developed a process that

eliminates 80% of the water in orange juice,

forming a frozen concentrate that when

reconstituted created orange juice. Theybranded it Minute Maid, a name connoting

the convenience and the ease of

preparation(in a minute). Minute Maid thus

moved to the first ever orange juice from

concentrate.
Mango. It is a fruit

associated with good times like no other.

Aptly called the king of fruits, mangoes are

to mango lovers what romance is to a

Casanova. Now imagine this delicious fruit,

bottled. This is what Maaza all about.

Introduced in the late 1970s, Maaza has

today come o symbolize the very spirit of

mangoes. Universally loved for its taste,

colour,thickness and wholesome properties,

Maaza is the mango lovers first choice. Maazas universal appeal was

responsible for the brand being recognized


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as a drink that provides wholesome family

fun. Even today people hum the memorable

lines-taaza mango, maaza mango and

botal main aam maaza hai naam. Maaza was realiswed to be about the

ultimate mango indulgence. And this was

because; only the freshest, juiciest Alphonso

mangoes go into a Maaza.
This

thought found voice creativity in the idea of

Tempting the mango expert. This idea

struck a chord with everyone and found a

universal appeal. It was to nobodys surprisethen that Maaza soon became the most

loved beverage rand in India.
Today

maaza has come a long way to stand as the

ideal way to satisfy ones craving for

mangoes. Aptly framed, the line Maaza lao,

aam ki pyaas bujhao symbolizes the very

essence of mangoes that has been captured

in a bottle.
It provides consumers the

most authentic experience of rich, juicy

mangoes to satisfy their thirst for mangoes-

anytime, anywhere!
Water, a thirst

quencher that refreshes, a life giving force

that washes away all the toxins away. A

ritual purifier that cleanses, purifies,

transforms. Water, the most basic need oflife, the very substance of life, a celebration

of life itself. The importance of water can


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never be understood. Particularly in a nation

such as India where water governs the lives

of millions, be it as a part of everyday rituals

or as the monsoon which gives life to thesub-continent.
Kinley water

understands the importance and value of

this life giving force. Kinley water thus

promises water that is as pure as it is meant

to be. Water you can trust to be truly safe

and pure. Kinley water comes with the

assurance of safety from the Coca-Cola

company. That is why we introduced Kinleywith reverse-osmosis aling with the latest

technology to ensure the purity of our

product. Thats why we go through rigorous

testing procedure at each and every location

where Kinley is produced. Because we

believe that right to pure, safe drinking water

is fundamental. A universal need, that

cannot be left to chance.
4.9:

Competitors to KBL
The competitors to

the products of the company mainly lie in the

non-alcoholic beverage industry consisting

of juices and soft drinks. The key

competitors in the industry are as follows:: The PepsiCo challenge, to keep up with

archrival, the Coca-Cola Company neverends for the World's # 2, carbonated soft-

drink maker. The company's soft drinks


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include Pepsi, Mountain Dew, and Slice.

Cola is not the company's only beverage;

PepsiCo sells Tropicana orange juice

brands, Gatorade sports drink, and Aquafinawater. PepsiCo also sells Dole juices and

Lipton ready-to-drink tea. PepsiCo and

Coca-Cola hold together, a market share of

95% out of which 60.8% is held by Coca-

Cola and the rest belongs to Pepsi. : Nestle

does not give that tough a competition to

Coca-Cola as it mainly deals with milk

products, Baby foods and Chocolates. Butthe iced tea that is Nestea which has been

introduced into the market by Nestle

provides a considerable amount of

competition to the products of the Company.

Iced tea is one of the closest substitutes to

the Colas as it is a thirst quencher and it is

healthier when compared to fizz drinks. The

flavored milk products also have become

substitutes to the products of the company

due to growing health awareness among

people. : Dabur in India, is one of the most

trusted brands as it has been operating ever

since times and people have laid all their

trust in the Company and the products of the

Company. Apart from food products, Daburhas introduced into the market Real Juice

which is packaged fresh fruit juice. These


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products give a strong competition to Maaza

and the latest product Minute Maid Pulpy

Orange.,Godrej and Bisleri: On local levels

these three pose a great threat to ourproducts. Parles Frooti, Godrejs Jumpin,

and Bisleris Water and Taaza maaza are

hampering the sales of Coca-Colas

products on the margins.The competitors to

KBL are those who are competitors to Coca-

Cola, and not any other franchise of our

competitors. Rival Pepsi's biggest bottler in

Punjab is the Chandigarh-based DhillonKool Drinks and Beverages Ltd. Chapter 5: FINANCIAL ANALYSIS OF

COCA-COLA
Latest 12 Months Data

Items- Latest Full Context Quarter Ending

Date (2010/03)
Gross Profit

Margin68.8%Pre-Tax Profit

Margin29.7%Interest Coverage27.0Current

Ratio1.3Quick Ratio0.9Receivables

Turnover9.2Most Recent DataAsset

Turnover0.7Return on Invested

Capital24.2%Total Debt/ Equity0.47Return

on Assets14.9%5-Year AveragesReturn on

Equity28.5%Return on Invested

Capital25.1%Gross Profit Margin68.5%Net

Profit Margin (TotalOperations)20.6%Current P/E Ratio 16.95-

Year High P/E Ratio 26.35-Year Avg. P/E


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Ratio20.712 Month Normalized P/E

Ratio16.6
Financial HighlightsFirst quarter 2010 reported net revenues

increased 5%. Net revenues increased 1%on a comparable currency neutral basis,

reflecting a 2% impact due to the

deconsolidation of certain entities required

by a change in accounting guidance, as well

as geographic mix.
First quarter 2010

reported operating income increased 17%,

and comparable currency neutral operating

income increased 9%. This was driven by acontinued strong focus on cost management

and the leveraging of productivity initiatives

as well as favorable timing of selling,

general and administrative expenses.Cash from operations in the quarter

increased 52% to $1.3 billion. There were no

share repurchases during the first quarter

due to the pending Coca-Cola Enterprises

(CCE) transaction.
During the quarter,

the Company announced its 48th

consecutive annual dividend increase,

raising the quarterly dividend 7% from 41

cents to 44 cents per common share. This is

equivalent to an annual dividend of $1.76

per share, up from $1.64 per share in2009.
The PER CAPITA

CONSUMPTION of Coca-Cola Beverage


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Products.Figures are in LitresRevenue

Growth EarningsGrowthYearEarnings2009$6.906

billion2008$5.807 billion2007$5.981billion2006$5.080 billionYearRevenue2009$30.990

billion2008$31.944 billion2007$28.857

billion2006$24.088 billion
Over the

past 3 years, Coca Cola has had a

respectable 8.7% in annual revenue

growth.Coke has enjoyed nearly 11%

annual earnings growth over the past threeyears. The most recent year, from 2008 to

2009, saw a 19% increase. Analysts predict

11.4% EPS growth in 2010 and 9.6% EPS

growth in 2011.Cash Flow GrowthYearCash Flow2009$8.186

billion2008$7.571 billion2007$7.150

billion2006$5.957 billion
Dividend

GrowthYearDividendYield2009$1.64$3.28%2008

$1.523.04%2007$1.362.50%2006$1.242.80

%
Annually, thats a cash flow growth

rate of over 11%. Coke has grown stock

dividends by 9.7% over the past three years.

The most recent increase, from 2009 to

2010, was a 7.3% increase. The payout ratiois a moderate 56%, so the dividend is safe

for a while and has room to grow.The


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company has also been repurchasing

shares annually. In 2009, they repurchased

$1.5 billion worth of shares.
Chapter 6:

STRATEGIC MANAGEMENT BY
COCA-COLA
6.1: StrategiesPOSITIONING STRATEGY
It means

that you try to give image to your product in

the mind of the customers. To give a true

and positive picture of the product is the

best positioning. The company should

promote its good points or comparative

advantage which it has over itscompetitor.
DIFFERENTIATION

STRATEGY
In order to serve your

target market you introduce different things

to your product so that your product can be

differentiated from other products.

Basis of Differentiation There are many

bases on which a product can be

differentiated but Coke has differentiated its

product on the following base:
Product

Differentiation- Coke differentiate its product

from its competitors on the basis of brand,

quality and taste. Image Differentiation-

Logo is used for image differentiation. Logo

is what establishes a brand name in the

consumer mind. It is the brandsidentification, signature and image. Coca-

Cola has kept on changing its logo from time


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to time.PROMOTION STRATEGIESPrice Strategy Trade Promotion:Coca-Cola Company gives incentives to

middle men or retailers in a way that theyoffer them free samples and free empty

bottles, by this these retailers and middle

man push their product in the market. And

that's why Coca-Cola seen more in the

market. And they have a good sale in the

market because according to the expert

which product seen more in the market that

sells more." Seen as sold"
They doagreements with a shop keepers and stores

to exclusive sale in those stores. These

stores are called as KEY accounts in their

local language.
And coke also invest

heavy budget on these stores and offers

them free samples and free bottles and

some time cash incentives.Advertisement Strategies:
Coca-Cola

Company use different mediums for

advertisement.
Print media : They

often use print media for advertisement.

They have a separate department for print

media.
TV commercial : As everybody

know that TV is a most common entertaining

medium so TV commercials is one of themost attractive way of doing advertisement.

So Coca-Cola Company does regular TV


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commercials on different channels.

Billboards and holding;
6.2: Our

Competitive strategies
The Coca-Cola

Company is one of the largest, mostsuccessful and most widely recognized

corporations in existence. Coca-Cola is a

dominating force in the beverage industry

and sets a very high standard of

competition. Research shows that its

trademark is recognized by over 94% of the

worlds population. There are many factors

contributing to Coca-Colas success,however, we believe that their key success

factors are Marketing, Innovation, and

Globalization.
Marketing:
Coca-

Cola is seen as one of the founding fathers

of the modern day marketing model. They

were among the pioneers of advertising

techniques and styles used to capture an

audience. They were also one of the first

companies to offer a gimmick with their

product, this being a mini yo-yo. It was

around 1900 when Coca-Cola began

presenting their signature drink as a

delicious and refreshing formula. This

slogan has been repeated for over the last

100 years selling Coke all over the world.Through its intense marketing campaigns,

Coke has developed an image that is


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reflected in what we think of when we buy

Coke and what we associate with drinking

Coke. This image has been subconsciously

installed in our brain by the advertisingcampaigns that show Coca-Cola associated

with good times.
Innovation: Coca-Cola has been able to survive and

grow in an ever-changing market because of

its ability to systematically innovate and

deliver new products. In the late 90s the

company, typically showing earnings growth

of 15-20% per year, turned in three straightyears of falling profits. It was apparent that

the market was changing and in order to

keep up with these changes, Coca-Cola had

to move from a single core product to a total

beverage company. This was a major

change because their past success was

base on having one successful core product.

Coca-Cola began to employ a strategy

referred to as play to win innovation. The

company began operating in a decentralized

environment that was unfeasible in previous

years. Now Coca- Cola offers nearly 400

different products in and is still dominating

the beverage industry. This is made possible

by the companys ability to innovate and

adapt to changing markets. Globalization:
Todays big business


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takes place on a global scale, and Coca-

Cola is no exception. Technology is

continually changing business, and these

constant changes have been making it morefeasible and profitable for businesses to

expand their operations globally in order to

serve all different types of diverse markets

around the world. This global view is

reflected in Cokes recent Id like to teach

the world to sing commercial. Coca-Cola is

taking advantage of the large revenue

opportunities made possible by participatingin a global market and now offers products

in 200 countries around the world.
6.3:

Industrial Environment and 5 Forces Model

for Coca-Cola
Bargaining Power of

SuppliersThe bargaining power of suppliers

is very low. As the coca cola company have

developed captive suppliers & entered into a

contract. So the company is not at the mercy

of the suppliers.Threats from

SubstitutesFruit JuicesWaterOthers Cold

BeveragesExisting Competitors Pepsi Parle

Other Local BrandsThreats from New

EntrantsAs there is no report of any new

company entering the Beverage

market.Bargaining power of BuyersThebargaining power of buyers is very high due

to the presence of various brands and also


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the unorganized sector. This gives the buyer

a wide variety of brands to choose from.

There is additional pressure from buyer to

introduce schemes and reduction in cost.
Applying Porters 5 forces allows the

garnering a retrospective view of the

potential attractiveness in terms of

profitability of the company. Analyzing the

beverage industry will also allow a more

accurate outlook on its potential.
6.4:

COCA-COLA COMPANY- THE SWOT

ANALYSIS
The Coca-Cola Company(Coca-Cola) is a leading manufacturer,

distributor and marketer of Non-alcoholic

beverage concentrates and syrups, in the

world. Coca-Cola has a strong brand name

and brand portfolio. Business-Week and

Inter brand, a branding Limca Common

drink. Fanta basically preferred by Ladies

and Kids. Maaza is branded for mango

lovers be it a kid a woman or a man. Sprite

defines for the straight attitude of todays

youth. Kinley Soda Mostly those who

consume liquor
Consultancy, recognize

Coca-Cola as one of the leading brands in

their top 100 global brands ranking in 2008.

The Business Week- Interbred valued Coca-Cola at $67,000 million in 2008. Coca-Cola

ranks well ahead of its close competitor


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Pepsi which has a ranking of 22 having a

brand value of $12,690 million; The

Companys strong brand value facilitates

customer recall and allows Coca-Cola topenetrate markets. However, the company

is threatened by intense competition which

could have an adverse impact on the

companys market share.
SWOT

Analysis StrengthsWeaknessesInternalPopularityw

ell knownbranding obvious and easily

recognizedA lot of financecustomerloyaltyInternational TradeWord of mouth

lack of popularity of many Coca-Colas

brands Most unknown and rarely seen result

of low profile or non-existent advertising

health issues Threats

OpportunitiesExternalchanging health-

consciousness attitude legal issues Health

ministerscompetition (Pepsi)many

successful brands to pursueadvertise its

less popular productsbuy out competition.

More Brand recognition Chapter7: FUTURE

PLAN-A LOOK FROM PRESENTMaximise Company and bottler long-term

cash flow.Attract, engage and retain the best

talent. Develop and deploy the worlds most

innovative and effective marketing.As we

look ahead to the year 2020, we see


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tremendous growth opportunities for our

franchise system and for the entire

nonalcoholic ready-to-drink beverage

industry. We are working closely with ourbottling partners around the globe,

leveraging our scale and the increased

presence of our brands. We remain

confident in our ability to deliver against our

strategies while laying the foundation for

consistent, profitable and sustainable long-

term growth, inspired by our 2020 Vision in a

growing world of refreshment."Aggressivelyincrease the value of our portfolio.Think and

act like an integrated global enterprise while

intensifying our local focus. Become a

critical part of our customers growth

strategies.Create competitive advantage by

fulfilling our Live Positively

commitments.Design and implement the

most effective and efficient business

system.KBLs future plan is just to track

ways to strengthen their position in the

market more firmly and not only to

strengthen old relations with a decade long

known retailers but also with the evolving

novice in the market. Other areas of

improvement include, effective planning ofdistribution system and acquiring a good

work force i.e. strengthening bond with hard


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smart and hard working employees. The

short term goals, as always, include the

effective removal of breaking flaws between

Coca-Cola and retailers. The main vision ofKBL is to induce such a perfection in their

market execution such that it converts its all

outlets to RED accounts i.e. all 26,000

outlets to be under RED standards.Chapter 8: THE PROJECT
8.1:

Executive Summary
Coca-Cola, the

product that has given the world its best-

known taste was born in Atlanta, Georgia,on May 8, 1886. Coca-Cola Company is the

worlds leading manufacturer, marketer and

distributor of non-alcoholic beverage

concentrates and syrups, used to produce

nearly 400 beverage brands. It sells

beverage concentrates and syrups to

bottling and canning operators, distributors,

fountain retailers and fountain wholesalers.

Coca-Cola was first introduced by John Syth

Pemberton, a pharmacist, in the year 1886

in Atlanta, Georgia when he concocted

caramel-colored syrup in a three-legged

brass kettle in his backyard. He first

distributed the product by carrying it in a

jug down the street to Jacobs Pharmacy

and customers bought the drink for five

cents at the soda fountain.


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/>Carbonated water was teamed with the

new syrup, whether by accident or

otherwise, producing a drink that was

proclaimed delicious and refreshing, atheme that continues to echo today

wherever Coca-Cola is enjoyed. Coca-Cola





Coca-Cola became the world-famous brand

it is today. Coca-Cola was the leading softdrink brand in India until 1977, when it left

rather than reveal its formula to the

Government and reduce its equity stake as

required under the Foreign Regulation Act

(FERA) which governed the operations of

foreign companies in India.
In the new

liberalized and deregulated environment in

1993, Coca-Cola made its re-entry into India

through one of its largest bottler, KBL, the

North Indian bottling arm of the Coca-Cola

Company.
The main objective of this

study lies in studying the market of the SSD

(sparkling soft drinks) brands by Coca-Cola

and understanding the consumers

perception and opinion about the products,with more inclination towards the study on

market of juices and Kinley water & soda,


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and the respective competitors analysis. This report gives an insight to the current

scenario of our products in Hotels, Clubs,

Hospitals and Govt. canteens segment. Thiswould be a direct attempt to point out the

flaws prevailing this segment of market and

possibly the better way to overcome them

through detailed study of this segment, as is

done in this project report.
This is an

opportunity to peep into the psychographic

status of the people working in this segment

and predict the possible way out of non-dominance in this market. This report will

provide detailed information about prevailing

market competition and thus prepare itself to

meet the market challenge by making

adjustment in its new strategy and

promotional activity, particularly for the

Hospitality Segment.
The project

begins with in-depth interview with the

owner of retail outlets, as primary source, to

extract the reality on ground level about

retailers psychology as our distributor and

competitors position and strategy. The

third need was to know the psychographic

needs of our consumers, which was

achieved by feedback/questionnaire processamong 50 to 80 youngsters. The conclusion

drawn from the quantitative and qualitative


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(Q2) analysis of data via graphs and open

ended feedbacks, are represented in under

the tag of gap analysis/grievances and

implications/suggestions.
8.2:Objective of this Report
The main

objective of this report is to evolve an

increased change in the Sales of Coca-Cola

Brands in Hotels, Clubs, Hospitals and Govt.

canteens.
The task would be mainly to

graph out the psychology of the retailers

who sell our SSD brands, Juices, Water and

Soda.
The first and foremost task is toidentify the flaws in our service system to

the retailers, which in turn hurts the sales of

Coca-Cola products. The next step involves

identification of potential markets and

recognition of opportunities where the

visibility and availability of our products can

be increased. The only task left after

identification of problems and opportunities

is to frame strategies which will eliminate the

flaws and take advantage of the

opportunities.8.3: Critical Literature

Review
There has been a lot of fuss

regarding the carbonated soft drinks and

pesticide issues, despite all the

demagnification the slowdown in thebusiness is not evident rather after a

slowdown in 2007 it has gone drastically


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high in the current scenario. The most

important fact to be mentioned here that the

report concentrates on the market segment

of Hotels, Clubs, Hospitals and Eating &Drinking points in Govt. offices.
Until

now there is no such effort evident from

references which have looked upon the

hospitality segment in the domestic market

of Chandigarh. The work clearly shows a lot

of gap into this segment.
8.4:

Research Methodology
In order to look

deeply into as to what is the positioning ofour products in consumers mind, a direct

interaction is a method to come to a

conclusive view. The purpose of this report

is to provide a roof-top view ofRetailers perceptionConsumers

perception Competitors analysisThese three

concepts will frame the problem accurately

and as it is said that a problem well defined

is half solved.
As retailers are KBLs

first consumer and first step into the market

and it is very necessary to keep a strict

watch on all the networks to these retail

outlets.
So the direct method adopted

was to do in-depth interview of the retailers,

demanding both qualitative and quantitativedata from them, which throws light not only

on retailers perspective but also on the


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consumers perception and a clear picture of

competitors position against our market

strategies.
Since more focus is

Documents

Sample Report Coke