SYNOPSIS

A STUDY OF CONSUMER BEHAVIOUR TOWARDS COLDRINK

WITH SPECIAL REFRENCE TO COCA COLA
COCA COLA
Submitted in partial fulfillment for the
Award of degree of

Master of Business Administration

SUBMITTED TO:
SUBMITTED BY:
Dr. Preeti Guta

Praveen

Singh Rathore
MBA IV SEM

SUBODH INSTITUTE OF MANAGEMENT &

CAREER STUDIES, RAM BAGH CIRCLE,
JAIPUR

(2014-2016)

Declaration

I hereby that I have worked on the topic A STUDY OF CONSUMER

BEHAVIOUR TOWARDS COLDRINK WITH SPECIAL REFRENCE TO

COCA COLA

All the information that has been collected, analyzed and documented for the project
is authentic possession to me.

I would like to categorically mention that the work here has neither been purchased
nor acquired by any other unfair means. The data and information existing in this
report are accurate and update to the current data, to the best of our knowledge.

PREFACE
I feel great pleasure in doing my project Total project Management at the Distributor
and Retailer Level of Hindustan Coca-Cola Beverages Pvt. Ltd. with Coca-Cola.
Their whole hearted support enabled me to complete this project.

This project is on Quality initiatives taken by Coca-Cola in pursuit of TQM Phase- III
certification for the Kaladera Plant in Jaipur.

In the I phase of the project I collected various samples from the Distributors and
Retailers and surveyed the warehouses along various quality parameters with the
help of questionnaires and observation method.

EXECUTIVE SUMMARY
Over the last few years, hundreds of companies have greatly improved their
performance &the graph of growth through superior sales promotion services. Today
many companies are building on these foundations and are tuning their products in
Soft drink segment into a formidable competitive weapon. Sales Promotion services
have become a subject of huge interest in recent years.
Sales Promotion Services is growing because:
In the face of ever-increasing competition in organizations feel, it is important
to build reliable & sustainable processes with focus on strong relationships
with customers. Significant revenue & profit gains can be made from
successful Sales
Promotion Activities that improve efficiency & help serve customers better &
faster.
The different distribution channels are as follows:"
1. Eating & Drinking 2.Convenience 3.Grocery
Activation is the key part of Coca-Cola marketing strategy
Company believes that soft drink sell is not a planned sell it's a impulse
buying, and activation create impulse for buying
For improvement of Coca-Cola market, a proper research work has done.
Sales Promotion Strategies are offering new & better ways of addressing
industries objectives.
Coca-Cola has developed a unique sales promotion strategy that offer a
unique way to increase the sales of the soft drink.

CONTENTS
S. NO.

Descriptions

Page no.

1.

Introduction to the industry

7-27

2.

Introduction to the Organization

28-39

3.

Research Methodology

40-46

3.1 Title of the Study

3.2 Duration of the Project
3.3 Objective of the Study
3.4 Types of Research
3.5 Collection Method and Sample Size
3.6 Scope of Study
3.7 Limitation of Study
4.

Facts and Findings

47

5.

Data Analysis and Interpretation

48-55

6.

Swot Analysis

56

7.

Conclusion

57

8.

Recommendation and Suggestion

58-59

9.

Appendix

60-62

10.

BIBLIOGRAPHY

63

INTRODUCTION TO THE ORGANIZATION

SOFT DRINK MARKET IN INDIA

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded
in 1886, the Company is the world's leading manufacturer, marketer, and distributor
of nonalcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. Our corporate headquarters are in Atlanta, with local operations in
over 200 countries around the world. The basic proposition of the business is simple,
solid and timeless. The company aims at bringing refreshment, value, joy and fun
to its stakeholders, they successfully nurture and protect brands, particularly CocaCola.

More than a billion times every day, thirsty people around the world reach for CocaCola products for refreshment. They deserve the highest qualityevery time. Our
promise to deliver that quality is the most important promise we make. And it
involves a worldwide, yet distinctively local, network of bottling partners, suppliers,
distributors and retailers whose success is paramount to our own. Our investment in
local communities in over 200 countries totals billions of dollars in jobs, facilities, and
marketing, the purchase of local goods and services, and local business
partnerships. Always and everywhere, we pursue continuous innovation in the
products we offer, the processes we use to make them, the packages we develop
and the ways we bring them to market.
The Coca-Cola system is one of the most diverse organizations on earth, with a rich
mosaic of talented colleagues who bring a variety of intellectual, professional, ethnic
and cultural perspectives to our enterprise. They reflect the nations, cultures and
languages of the world. Our policy is to foster an inclusive environment that
encourages all employees to develop and perform to their fullest potential.
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending
machines of more than 200 countries. It is produced by The Coca-Cola Company of
Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of
The Coca-Cola Company in the United States since March 27, 1944). 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 produces concentrate, which is then sold to 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 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
soda fountains 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, with others including
Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola
Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the
process of phasing out E211, or sodium benzoate, the controversial additive used in
Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The
company has stated that it plans to remove E211 from its other products, including
Sprite and Oasis, as soon as a satisfactory alternative is found.

Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first
distributed in 1888 to help promote the drink. By 1913, the company had redeemed
8.5 million tickets.

This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,
Louisiana.
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a
coca wine called Pemberton's French Wine Coca. He may have been inspired by the
formidable success of Vin Mariani, a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French
8

Wine Coca.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[10] 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.
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,[14] 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 alcoholicson Charley Pemberton
began selling his own version of the product.
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 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.

Old German Coca-Cola bottle opener

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. By the time of its 50th anniversary, the
drink had reached the status of a national icon in 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. The first outdoor
wall advertisement was painted in the same year as well in Cartersville, Georgia.[19]
Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in
Vicksburg, Mississippi, at the Biedenharn Candy Company in 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 two entrepreneurs from Chattanooga,
Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and
were so persuasive that Candler signed a contract giving them control of the
procedure for only one dollar. Candler never collected his dollar, but in 1899
Chattanooga became the site of the first Coca-Cola bottling company. 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, effectively 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.
New Coke
One of Coke's ads to promote the flavor change.
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 Coke and Pepsi, but Coca-Cola
management was unprepared for the public's nostalgia for the old drink, leading to a
backlash. The company gave in to protests and returned to a variation of 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 to launch a Diet Coke product sweetened with the artificial
10

sweetener sucralose, 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.[25] In 2007, Coca-Cola began to
sell a new "healthy soda": Diet Coke with vitamins B 6, B12, magnesium, niacin, and
zinc, marketed as "Diet Coke Plus."
On July 5, 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 "CocaCola." The word "Classic" was truncated because "New Coke" was no longer in
production, eliminating the need to differentiate between the two. The formula
remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16ounce bottles sold in parts of the southeastern United States. The change is part of a
larger strategy to rejuvenate the product's image
In November 2009, due to a dispute over wholesale prices of Coca-Cola products,
Costco stopped restocking its shelves with Coke and Diet Coke.
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 leaf and the caffeine
from kola nut, leading to the name 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;
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 removedCoca-Cola still contains
coca flavoring.
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves
the leftovers of the cocaine-extraction process with cocaine trace levels left over at a
11

molecular level. To this day, Coca-Cola uses as an 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, which it obtains
mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca
flavoring agent for Coca-Cola, Stepan Company extracts cocaine from the coca
leaves, which it sells to Mallinckrodt, a St. Louis, Missouri pharmaceutical
manufacturer that is the only company in the United States licensed to purify cocaine
for medicinal use.
Kola nuts caffeine
Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for
example, the ingredient label states "Flavourings (Including CaffeineKola nuts
contain about 2 percent to 3.5 percent caffeine, are of bitter flavor and are commonly
used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty
Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove
caffeine from its formula. The case was decided in favor of Coca-Cola.
Subsequently, in 1912 the U.S. 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 of caffeine per 12 fluid ounces, while Caffeine-Free CocaCola and Diet Coke Caffeine-Free contain 0 mg.

Production
Coca-Cola 375 mL 24 can pack (AU)
Ingredients

Carbonated water

Sugar (sucrose or high-fructose corn syrup depending on country of origin)

Caffeine

Phosphoric acid v. Caramel (E150d)

12

Natural flavorings

A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar,
approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and
140 calories.
Formula of natural flavorings
Main article: Coca-Cola formula
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients
which are listed on the side of the bottle or can) is a trade secret. The original copy
of the formula 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 formulaThe truth is that while CocaCola does have a rule restricting access to only two executives, each knows the
entire formula and others, in addition to the prescribed duo, have known the
formulation process.
On February 11, 2011 Ira Glass revealed on his PRI radio show, This American Life,
that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The
formula found basically matched the formula found in Pemberton's diary.
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 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
sweeteners, and then carbonate it before putting it in 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

13

of the volume sold in the world. Independent bottlers are allowed to sweeten the
drink according to local tastes
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling
Company".
Brand portfolio
Name

Launched Discontinued Notes

Coca-Cola

1886

Caffeine-Free
Coca-Cola

Picture

The original version of Coca-Cola.

The caffeine free version of Coca-

1983

Cola.

Was available in Canada starting

in 1996. Called "Cherry CocaCoca-Cola
Cherry

Cola (Cherry Coke)" in North

1985

America until 2006. Zero-calorie

variant (Coca-Cola Cherry Zero)
also currently available.

New
Coke/"Coca- 1985
Cola II"

2002

Still

available

American Samoa

14

in

Yap

and

Still available in:

American

Samoa,

Austria,

Belgium, Brazil, China, Denmark,

Federation
Coca-Cola
with Lemon

of

Herzegovina,
2001

2005

Bosnia

Finland,

and

France,

Germany, Hong Kong, Iceland,

Korea,

Luxembourg,

Macau,

Malaysia, Mongolia, Netherlands,

Norway,
Spain,

Runion,

Singapore,

Switzerland,

Taiwan,

Tunisia, United Kingdom, United

States, and West Bank-Gaza
Still available in:

Coca-Cola

2002

2005

Austria,

Australia,

Germany,

Hong

China,

Kong,

New

Zealand (600 mL only) Malaysia,

Sweden (Imported) and Russia.

Vanilla

Was called "Vanilla Coca-Cola

(Vanilla Coke)" during initial U.S.
availability.
It was reintroduced in June 2007

2007

Coca-Cola C2 2003

by popular demand

2007

Was only available in Japan,

Canada, and the United States.

Available
Coca-Cola
with Lime

in

Belgium,

Netherlands, Singapore, Canada,

2005

the United Kingdom, and the

United States.

Coca-Cola

June

Raspberry

2005

End of 2005

Was

only

available

Zealand.

15

in

New

Coca-Cola
Zero

2005

Only available in Federation of

Bosnia

Coca-Cola M5 2005

and

Herzegovina,

Germany, Italy, Spain, Mexico and

Brazil

Coca-Cola
Black Cherry 2006
Vanilla

Middle
2007

of Was replaced by Vanilla Coke in

June 2007
Only

available

in

the

United

States, France, Canada, Czech

Coca-Cola
Blk

2006

Beginning of Republic,

Slovak

2008

of

Federation

Republic,

Bosnia

Herzegovina,

and

Bulgaria

and

Lithuania
Coca-Cola
Citra
Coca-Cola
Light Sango

Only available in Federation of

2006

Bosnia and Herzegovina, New

Zealand and Japan.

2006

Only available in France and

Belgium.
Only

Coca-Cola
Orange

available

Kingdom
2007

Germany,

in

and

the

United

Gibraltar.
Austria

In
and

Switzerland it's sold unter the

label Mezzo Mix.

16

Logo design

Detail on Elmira Coca-Cola Bottling Plant, Elmira, NY.

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank
Mason Robinson, in 1885.[50] Robinson came up with the name and chose the logo's
distinctive cursive script. The typeface used, known as Spencerian script, was
developed in the mid 19th century and was the dominant form of formal handwriting
in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising. His
promotional suggestions to Pemberton included giving away thousands of free drink
coupons and plastering the city of Atlanta with publicity banners and streetcar signs
Contour bottle design

17

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

The prototype never made it to production since its middle diameter was larger than
its base, making it unstable on conveyor belts.

2 Litre bottle label

The equally famous Coca-Cola bottle, called the "contour bottle" within the company,
but known to some as the "hobble skirt" bottle, was created 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 bottles, "a bottle which a person could recognize even if they felt it in the

18

dark, and so shaped that, even if broken, a person could tell at a glance what it
was."[52]
Advertising

An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The
ad is titled Drink Coca-Cola 5. (US)

Coca-Cola ghost sign in Fort Dodge, Iowa. Note older Coca-Cola ghosts behind
Borax and telephone ads.

19

Coca-Cola signboard in Lahore, Pakistan.

Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.

Coca-Cola's advertising has significantly affected American culture, and it is
frequently credited with inventing the modern image of Santa Claus as an old man in
a red-and-white suit. Although the company did start using the red-and-white Santa
image in the 1930s, with its winter advertising campaigns illustrated by Haddon
Sundblom, the motif was already common.[69][70] Coca-Cola was not even the first soft
drink company to use the modern image of 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.[71][72] Before Santa Claus, Coca-Cola relied on
images of smartly dressed young women to sell its beverages. Coca-Cola's first such
advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark
as its spokeswoman.
A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus2 or FGBA-2) was developed for use on the Space Shuttle as "a test bed to
determine if carbonated beverages can be produced from separately stored carbon
dioxide, water and flavored syrups and determine if the resulting fluids can be made
available for consumption without bubble nucleation and resulting foam formation".
The unit flew in 1996 aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet
Coke.[103]
1894 A modest start for a bold idea
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began
bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler

20

thanked him but took no action. One of his nephews already had urged that CocaCola be bottled, but Candler focused on fountain sales.
1899 The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a
business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas
and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most
of the United States -- for the sum of one dollar. A third Chattanooga lawyer, John T.
Lupton, soon joined their venture.

1900-1909 Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights
to local entrepreneurs. Their efforts were boosted by major progress in bottling
technology, which improved efficiency and product quality. By 1909, nearly 400
Coca-Cola bottling plants were operating, most of them family-owned businesses.
Some were open only during hot-weather months when demand was high.
1916 Birth of the Contour Bottle
Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with
imitators. A group representing the Company and bottlers asked glass manufacturers
to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval.
1920s Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the
U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit
starting in 1923. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.
1920s and '30s International expansion
Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the
Company began a major push to establish bottling operations outside the U.S.

21

Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and
South Africa. By the time World War II began, Coca-Cola was being bottled in 44
countries
1940s Post-war growth
During the war, 64 bottling plants were set up around the world to supply the troops.
This followed an urgent request for bottling equipment and materials from General
Eisenhower's base in North Africa. Many of these war-time plants were later
converted to civilian use, permanently enlarging the bottling system and accelerating
the growth of the Company's worldwide business.
1950s Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type-the
traditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26ounce versions. Cans were also introduced, becoming generally available in 1960.
1960s New brands introduced
Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr.
Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke
and Cherry Coke, followed by POWERaDE and Fruitopia in the 1990s.
1970s and '80s Consolidation to serve customers
As technology led to a global economy, retail customers of The Coca-Cola Company
merged and evolved into international mega-chains. Such customers required a new
approach. In response, many small and medium-size bottlers consolidated to better
serve giant international customers. The Company encouraged and invested in a
number of bottler consolidations to assure that its largest bottling partners would
have capacity to lead the system in working with global retailers.

1990s New and growing markets

Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company invested
heavily to build plants in Eastern Europe. As the century closed, more than $1.5
billion was committed to new bottling facilities in Africa.
22

21st Century Think local, act local

The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as consumers seek
brands that honor local identity and the distinctiveness of local markets. As was true
a century ago, strong locally based relationships between Coca-Cola bottlers,
customers and communities are the foundation on which the entire business grows.
MARKET STRATEGY OF COCA COLA
Our local marketing strategy enables Coke to listen to all the voices around the world
skiing for beverages that span the entire spectrum of tastes and occasions. What
people want in a beverage is a reflection of which they are, where they live, how they
work and play, and how they relax and recharge. Whether you're a student in the
United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break,
a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after
a run together, we're there for you. We are determined not only to make great drinks,
but also to contribute to communities around the world through our commitments to
education, health, wellness, and diversity. Coke strives to be a good neighbor,
consistently shaping our business decisions to improve the quality of life in the
communities in which we do business. It's a special thing to have billions of friends
around the world, and we never forget it. Now if we talk about India. Coke has its
focus on the youth market in India. Real example of it is that they present their
product by star cricketer and bollywood stars to get the attention of youth. But now a
days coca cola is moving to rural market because it is the real market of India. When
Amir Khan started advertisement of coca cola and the tag line of this adds
thanda matlab coca cola was directly targeted

rural area.

And the

current situation is that they are very much successful in this target.
COCA COLA CLOSE TO PEOPLE
The heart and soul of our enterprise have always been our people. Over the past
century, Coca-Cola people have led our success by living and working with a
consistent set of ideals. While the world and our business will continue to change
rapidly, respecting these ideals will continue to be essential to our long-term
success.

23

Nothing is more important to our success than integrity. This begins with insisting on
absolute quality for every one of our products, and acting with a strong sense of
accountability in everything we do.
Coca-Cola people have always known that building and nurturing our relationships
with other people and the world around us is an essential part of our work. No matter
how big or complex our business becomes, we must always demonstrate complete
respect for each other. As the world becomes more interconnected, yet more firmly
rooted in local pride, recognition of our interdependence with our stakeholders
becomes even more essential.
A large part of our relationship with the world around us is our relationship with the
physical world. While we have always sought to be sensitive to the environment, we
must use our significant resources and capabilities to provide active leadership on
environmental issues, particularly those relevant to our businesses.
As we have expanded over the decades, our company has benefited from the
various cultural insights and perspectives of the societies in which we do business.
Much of our future success will depend on our ability to develop a worldwide team
that is rich in its diversity of thinking, perspectives, backgrounds and culture. CocaCola is the world's most inclusive brand, and Coca-Cola must also be the world's
most inclusive company.
WASHING & RINSING
To ensure quality, each bottle is washed, sanitized & rinsed before being filled. While
this sounds simple, the actual steps can differ per bottling plant. Outside the United
States many plants use refillable glass or plastic bottles. To be ensuring they meet
our cleanliness standards, bottles are first hit with pre-rinse jet which removes any
dirt or debris. They are then soaked in a high temperature deep cleaning solution
that removes any remaining direct and sanitizes them. The bottles then moves to
hydro wash where they are washed again with a deep cleaning pressure spray.
Finally, the bottles are rinsed with cooling water jets before being visually and/or
electronically inspected. In the United States, we primarily use new bottles, not
refillable once. This allows the washing & rinsing steps to move much more quickly.

24

MIXING & BLENDING

H2O:
Mixing & blending begins eighth the simple step of mixing pure water with
refined sugar, which creates simple syrup. While in some countries measuring the
correct amount of sugar is done by batch, in many North America and European
plants measurements are made using continuous blending systems.
SECRET FORMULA
Our secret formula is.still secret! That right, the secret formula remains a mystery
to the millions of people in nearly 200 countries who enjoy our refreshing beverages
every day. Even through cannot tell you the secret, you can be sure that Life Tastes
Good with Coca-Cola.

H2O & SYRUP

Uncorroborated beverage. However, the water and syrup must be mixed in right
ratio. This done by the With the syrup nearing its final state, we mix it with pure
water, creating the finished beverage proportioning equipment. It accurately
measures the correct ratio for each and this mixture to the carbonator.
Co2 ADDED
Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverage.
Carbon dioxide not only gives our beverages their effervescent zest, but it also adds
to the distinctive and familiar taste everyone has come to expect from our
beverages.
FILLING
Once all the ingredients have been mixed and blended and the bottles have been
cleaned and sanitized, were ready to start filling. This is a surprisingly complex
process requiring precision at each step. To begin with, bottles must be carefully
timed as they move to the filler synchronization is key. Once at the filler, bottles are
either held securely in place by flexible grippers or precisely placed under filling
valves by centering devices. Before the bottles can be filled, the inside of the bottle
must be pressurized. This allows for the force of gravity itself to draw the beverage
25

into the bottle-a process that ensures the smooth flow of liquid, with little to no
foaming.
CAPPING
Once filled, bottles are then capped. We use different caps for different bottles-glass
bottles are usually topped with a metal crown while plastic bottles are primarily
topped with a plastic screw top. Each can type than moves through different parts of
the
machine, which ensures each cap stay scratch free and is in the right position to be
precisely placed on the bottle. As quality and freshness is key, we use a no-closure
detector during the capping process and a go-no-gauge or torque meter after the
bottle has been capped the no closure detector checks if a screw to or crown has
been placed on a bottle. The process actually stops if the detector doesnt find a
closure. The go-no-gauge checks for the proper crown crimp and the torque meter
check make sure the screw top are good and tight.
LABELLING
Once the bottles have been filled and capped, they move on to be labeled. A special
machine dispenses labels from large rollers cuts them and places them on the bottle.
For special labels such as commemorative bottles for football championship, the
labels are send to the bottling plants from approval, and then used for packaging.
Depending on the occasion, some of these special bottles will go only to specific
locations. For examples, a national football championship bottle will be sent only to
the home town or state of the championship team.
CODING
The bottle is now ready to be coded. Each one of our beverages is marked with a
special code that identifies specific information about it. Some codes simply identify
their date the beverage was bottle or caned. Some come in the form of a date stamp
while other codes are much more complex. These codes identify the day, month,
shift and plant in which the beverage was made and use a combination of letters a d
numbers. You cannot see code on your container. It is because some bottlers use
invincible ink that can only we reed with special technology.

26

2. INTRODUCTION TO THE ORGANIZATION

Coca Cola in IndiaAfter a 16 years absence, coca cola returned to India on October 26,1993 with its
launch in Agra. An engagement in March 1993 with the Parle Group gave the
company instant ownership of the nations top soft drinks brands, with access to
parleys 53-plant bottling network, and a base for rapid introduction of the companys
international brands. This network remains Indias largest soft drink bottling and
distribution infrastructure, reaching out too Indian consumers through a universe of
over 8000000 retail outlets spread across the country. As the leading producer and
marketer of soft drinks in India, the company leads the flavored, carbonated soft
drink market . the Coca-cola Companys products in India include the companys
international brands- Coca cola, sprite and fanta, as well as Indias leading soft drink
brands, Thumps Up Limca and Maaza- brands acquired from the Parle Group in
1993

Brands in India:1. Coca-Cola

2. diet Coke
3. Sprite
4. Fanta
5. Schweppes
6. Thums Up
7. Limca
8. Maaza
9. Citra
10. Gold Spot
11. Kinley water
12. Sun fill concentrate
13. Shock
14. RIMZIM

27

Bottling Information
The Coca-Cola Company received approval from the government in July 1996 to set
up a holding company to invest US$700 million in downstream operating subsidiaries
to engage in the preparation, packaging, sale and distribution of beverages.
In July 1997, the holding company was permitted by the government to
operationalize its bottling subsidiaries.
The bottling subsidiary currently owns and operates twenty-six bottling plants and
sixty distribution centers across India. In addition, it uses 20 contract packers to
augment its production capacity and cater to the increasing demand for its wide
portfolio of beverages.
To reach India's 300 million soft-drink consumers, the company distributes its
products in over 700,000 retail outlets, serviced via trucks, converted three-wheelers,
tricycles and pushcarts.

Employment/Economic Impact
The Coca-Cola system in India directly employs over 7,000 workers. For every direct
job in the system, seven indirect jobs are created in the supply chain.
Over the past nine years, The Coca-Cola Company has invested US$827 million in
India, US$805 million of which has been invested in its bottling subsidiary.

Community Involvement
The Coca-Cola Company in India supports eight Jagriti (Awakening) Learning
Centers (JLC), managed by India's well-known organizations, such as CRY,
Pratham, Prayas and Literacy India. The program provides education at the primary
level to underprivileged children, as well as computers and training for teachers.
Over 1,800 students per year have benefit from the program.
Working with state and district governments, our company provides support to
primary health centers in areas where our bottlers are located.
In 2002, in partnership with The St. John's Ambulance Brigade (Associate of Red
Cross), we conducted health camps for those who live in poverty-stricken urban
areas to sensitize the community on pertinent issues such as HIV/AIDS,

28

communicable diseases, immunization, hygiene and sanitation, and reproductive

and child health. Free health check-ups and medicine were provided, with over
10,000 people benefiting from the campaign.
The company supports a rainwater harvesting project as part of a major government
initiative to combat water scarcity and reduce ground water tables across the
country. We are analyzing options for rainwater harvesting at our major bottling
plants. Along with the Resident Welfare Association of Greater Kailash, our company
installed four rainwater harvesters. The Chief Minister of Delhi unveiled one of the
rainwater harvesting units in a dedication to local residents.
Several of our bottling plants provide safe drinking water to local villagers through
the organization of water tankers, bore wells and hand pumps.
The company has funded India's first national polio eradication drive, as well as a
national drought relief program.
Sponsorships
The company sponsors a unique national radio program for women called "The HER
Show" (Health Education and Recreation). The 30-minute weekly program informs
and educates housewives on primary health and education issues.
We sponsored a one-day "Mother & Child Health district Mela" in Ghaziabad.
Several hundred women and children from five villages received free medical checkups and consultation.
With a large work force complemented by a vast network of indigenous suppliers ,the
company not only contributes to the development of the soft drink industry ,but to the
development of related industries and the economy as a whole.
Over the past 5 years , coco-cola India has led the Indian Soft drink industry through
a series of innovative industry initiatives . These include upgradation of technical
infrastructure and talent ,enhancement of quality standards , improvement in the
distribution systems and stimulation of local entrepreneurs in the marketplace to the
benefit of the consumers.

29

HINDUSTAN COCA COLA BEVRAGES PVT. LTD.

Industry: Consumer product / FMCG products HINDUSTAN COCA COLA
BEVRAGES PVT. LTD.
Types of Company: Private Limited Company, Foreign Based Company
Location:
Sales Office: A-164, SECTOR 63, NOIDA (NCR)

Plant: RIICO INDUSTRIAL AREA, KALADERA TEHSIL CHOMU, JAIPUR.

FEW WORDS ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares
an experience that millions of others have served. All of those individual experiences
combined have created a worldwide phenomenon a truly global brand. On the
distribution front, 10-tonne trucks, open-bay three wheelers that can navigate the
narrow alleyways of Indian cities, ensure availability of our brands in every nook and
corner of the country.

30

HISTORY
Coca-Cola Company, nourishing the global community with the worlds largest selling
soft drink since 1886, returned to India in 1993 after a gap of 16 years giving a new
thumbs-up to the Indian Soft Drink Market. In the same year, the Company took over
ownership of the nation's top soft-drink brands and bottling network. No wonder, our
brands have assumed an iconic status in the minds of the consumers. Coca-Cola
serves in India some of the most recalled brands across the world including names
such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up, Limca, Sprite Maaza and
Kinley (packaged drinking water and soda), Minute Maid Nimbu Fresh.

Bottlers
In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or
produce) syrup concentrate which is then sold to various bottlers throughout
Pharmacist John Smith Pemberton in 1886. The Coca-Cola formula and brand was
bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.
Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400
brands in over 200 countries or territories. The company operates a franchised
distribution system dating back to 1889 where TCCC only produces syrup
concentrate which is then sold to various bottlers throughout the world who hold an
exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its
stock is listed on the NYSE and is part of DJIA and S&P 500

All India Division COBOs are now ISO 14001 certified

All 25 of the Divisions Company-owned bottling plants have gained the international
standard ISO 14001 Environment Management System certificate.
The ISO 14001 certificate is the internationally recognized standard of Environmental
Management.

31

A company must demonstrate management commitment, the total involvement of all

employees and a compliance with applicable regulatory and internal company
standards.
Strict division compliance with EKO system ensured that the bottling plants were
ready to meet the tough evaluation criteria and standards of the ISO auditors.

RIGHT EXECUTION DAILY (R.E.D.)

R.E.D. is the survey method that company started earlier. For the survey of R.E.D.,
Company had hired the person A.C. Nielson one of the best survey company. This
survey gets done once in a month. R.E.D. is the set of norms divided into outlet wise.
ABOUT THE R.E.D. SURVEY

The survey named as R.E.D. (Right Execution Daily).

The survey has been conducted to check the cooler management, availability
of products & activation of coca-cola in various outlets.

THE SURVEY WAS BASED ON THREE TOPICS

Firstly, I have to check the cooler management i.e. the customer, are properly
managed/working or not. And lastly the most important aspect of cooler

management was the brand order.

Secondly, I have to check the availability of the product i.e. whether the

product is available to the customer or not.

Lastly, I have to check the activation, which is a very important because
activation helps to boost the sales. Activation is done through boards i.e. glow
sign. DPS, Flanges and Combo Boards. Mostly combo boards are given to
the E & D outlets. And is very helpful in attracting the customers. Racks with
header are provided to the Grocery outlet, which should be fully charged.

Right Execution Daily (R.E.D.) is the diversification of outlets as Channel, Class. Let
us know what are the Channel and Class respectively.

32

PRODUCTS AND BRANDS

33

Diet Coke
It was introduced in 1982 to offer an alternative to dieters worried about the
high number of calories present in regular Coca-Cola.
The Coca-Cola Company offers nearly 400 brands in over 200 countries,
besides its namesake Coca-Cola beverage. This includes other varieties of
Coca-Cola such as:

Diet Coke (introduced in 1982), which uses aspartame, a synthetic

phenylalanine-based sweetener in place of sugar

Diet Coke Caffeine-Free

Cherry Coke (1985)

Diet Cherry Coke (1986)

Coke with Lemon (2001)

Diet Coke with Lemon (2001)

Vanilla Coke (2002)

Diet Vanilla Coke (2002)

Coca-Cola C2 (2004)

Coca-Cola Black Cherry Vanilla (2006)

Diet Coca-Cola Black Cherry Vanilla (2006)

Coca-Cola BlK (2006)

Diet Coke Plus (2007)

Coca-Cola Orange (2007)

Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a
sugar substitute. Introduced in 1963, the product is still sold today, however its sales
have dwindled since the introduction of Diet Cok

34

Thums Up
Type

Cola

Manufacturer

The Coca-Cola Company

Country of origin

India

Introduced

1977

Related products

Coca-Cola, Pepsi, Campa Cola

Thums Up is a carbonated soft drink (cola) that is very popular [citation needed] in
India, where its bold, red thumbs up logo are common. It is similar in flavor to other
colas but has a unique taste reminiscent of betel nut. Introduced in 1977 to offset the
expulsion of The Coca-Cola Company and other foreign companies from India,
Thums Up, Limca, and Campa Cola gained nationwide acceptance. The brand was
bought out by Coca-Cola who later re-launched it to fight against Pepsi after
unsuccessful attempts at brand killing.
Background
During late 1970s, the American cola giant Coca-Cola was banned by the Indian
government. Following this, the Parle brothers, Ramesh Chauhan and Prakash
Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship
drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot
(orange flavored). Thums Up was basically a cola drink, but the company never
claimed it as such. The formula was just as closely guarded as the famous Coke
formula. During the same time, the owners of Coca-Colas bottling plant, Pure Drinks
Ltd., launched Campa Cola and Campa Orange, both of which had a higher dose of
carbon dioxide.

35

The Thums Up logo was a logo showing a red thumbs up hand gesture with a
slanted white serif typeface. This would later be modified by CocaCola with blue strokes and a more modern-looking typeface. This

was mainly done

to reduce the dominant red color in their signage.

The picture shows the thums up mountain or thums up pahaad (in Hindi)manmade
hills which has a natural top like thums up logo and is a popular sight from trains .Its
famous caption until the early `80s was, Happy days are here again, coined by then
famous copywriter Vasant Kumar, whose father was spiritual philosopher U. G.
Krishnamurti. Later it was changed to "Taste the thunder!.
Market

Thums Up enjoyed a near monopoly with a much stronger market share often
overshadowing its other rivals like Campa cola, Double seven and Dukes, but
there were many small regional players had their own market. It even withstood
liquor giant United Breweries Group (makers of Kingfisher Beer) McDowells Crush,
which was another Cola drink and one more Double Cola.

36

It was one of the major advertisers throughout the 80s. In mid-80s it had a
brief threat from a newcomer Double Cola which suddenly disappeared within a few
years.
In 1990, when Indian government opened the market to multinationals, Pepsi
was the first to come in. Thums Up went up against the international giant for an
intense onslaught with neither side giving any quarter. With Pepsi roping in major
Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased
its spending in the Cricket sponsorship. Then the capacity went from 250ml to
300ml, aptly named Maha Cola. This nickname gained popularity in smaller towns
where people would ask for "Maha Cola" instead of Thums Up. The consumers were
divided where some felt the Pepsis mild taste was rather bland.
In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to
1993. But Coca-Colas entry made things even more complicated and the fight
became a three-way battle. That same year, in a move that baffled many, Parle sold
out to Coke for a meager US$ 60 million (considering the market share it had). Some
assumed Parle had lost the appetite for a fight against the two largest cola brands;
others surmised that the international brands seemingly endless cash reserves
psyched-out Parle. Either way, it was now Coca-Colas, and Coke has a habit of
killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its
cola in cans which was all the rage in India, with Thums Up introduced alongside,
albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up
brand which at that time still had more than 30% market share.
Re-launch
Despite its strong overall equity, the brand was losing its popularity among the core
cola drinking age group of 12 to 25 year olds, partly due to nil advertising. Coca-Cola
apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more
than Coke if Thums Up was withdrawn from the market. Instead, Coke decided to
use Thums Up to attack Pepsi. The Coca-Cola Company by this time had about
60.5% share of the Indian soft-drink market but much to its dismay found out that if it
takes out Thums Up, it would remain with only 28.72% of the market (according to a
report by NGO Finance Trade in India), hence again dusted out the Thums Up brand
and re-launched targeting the 30 to 45 year olds.

37

The brand was re-positioned as a manly drink, drawing on its strong taste
qualities. Known to be a strong drink with more power packed into it than other colas,
it was a favorite in Rum based Cocktails and the byword rum and Thums Up.
Hence Thums Up kick-started an aggressive campaign directly attacking Pepsis
television advertisement, focusing on the strength of the drink hoping that the
depiction of adult drink would appeal to young consumers.
Grow up to Thums Up was a successful campaign. The brands market share and
equity soared northwards. The brand was unshakeable and Coca-Colas declaration
that Thums Up was Indias premier cola brand in terms of market share did not
surprise many.
Other campaigns from Thums Ups build on the strength of its cola and build
associations as a macho drink. Ads showing the Thums Up man, riding through the
desert in search of a cantina that sells Thums Up rather than drink another cola, stick
in the minds of many Indians and caught the imagination of youngsters who want to
be seen as men.

38

3. RESEARCH METHODOLOGY
The study is based on Primary data and Secondary data. Secondary Data was
collected from the Companys website and MDs Sales Presenter as well as Primary
Data was collected through structured questionnaire. The questionnaire was
designed by keeping all the objectives of the study in mind.

3.1. Title of the Study: - A STUDY OF CONSUMER BEHAVIOUR

TOWARDS COLDRINK WITH SPECIAL REFRENCE TO COCA COLA.
3.2. Duration of the Project: - I have been assigned this project as 15 days
training.

3.3 .Objective of Research

Primary Objective:
1. To understand & explain the Horizontal Expansion Concept with respect to
HCCB operations at retail end.
2. To enlist the benefits of Horizontal Expansion for the company at retail end.
3. To enlist the roles and responsibilities for Horizontal Expansion at retail end.
Secondary Objectives:
1. To identify if there exists any training requirement for the improvement of
sales to its sales team?
2. To understand how to make The Horizontal Expansion Process more effective
3. To study the distribution system of the company.
4. To study the behavior of sales man and distributor towards shopkeeper.
To develop the business, expand the market coverage, acquisition of retailers,
retention strategies and maintaining customer relations

39

3.4. Types of Research

The type of research which is used to conduct survey was.
Primary research, in contrast, is research that you design and conduct
yourself.

For example, you may need to find out whether consumers

would prefer that your soft drinks be sweater or tarter.

Secondary research involves using information that others have already
put together. For example, if you are thinking about starting a business
making drinks for people, you dont need to question people about what
type of drink they prefer for major and minor likes.that information has
already been published by the Indian Government.
Research will often help us reduce risks associated with a new product,
but it cannot take the risk away entirely. It is also important to ascertain
whether the research has been complete. For example, Coca Cola did a
great deal of research prior to releasing the New Coke, and consumers
seemed to prefer the taste. However, consumers were not prepared to
have this drink replace traditional Coke.

3.5. Sample size and Data collection Method

Sampling units are outlets owners/ shopkeepers selling soft drinks.
Method of data collection:
The study is based on Primary data and Secondary data. Secondary Data was
collected from the Companys website and MDs Sales Presenter as well as Primary
Data was collected through structured questionnaire. The questionnaire was
designed by keeping all the objectives of the study in mind.

40

Universe:
Jaipur
Thus questionnaires and discussions were the two main tools/instruments used.
Sample Size:
Sample Size of 50 outlets.
Sample Technique:
Sample Technique is Simple Random Technique.

3.6. Scope of study

What is Horizontal Expansion?

Expansion of business capacity through the absorption of facilities or buildings as

well as through the acquisition of new equipment to handle an increased volume in
sales in which the business is already engaged. In microeconomics and strategic

41

management, the term Horizontal Expansion describes a type of ownership and

control. It is a strategy used by a business or corporation that seeks to sell a type of
product in numerous markets. Horizontal Expansion in marketing is much more
common than Vertical Expansion is in production. Horizontal Expansion occurs when
a firm is being taken over by, or merged with, another firm which is in the same
industry and in the same stage of production as the merged firm, e.g. Pepsi has
adopted strategy of Vertical Expansion by which Pepsi wants to improve its sale
from Coke monopoly outlets, means Cokes monopoly outlets are being taken over
by Pepsi now in this condition to improve its sale Coke need to open new outlets
which is called Horizontal Expansion Strategy. A monopoly created through
Horizontal Expansion is called a Horizontal Monopoly.
This is the expansion of a firm within an industry in which it is already active for the
purpose of increasing its share of the market for a particular product or service.
Reason Of Horizontal Expansion?
The ultimate objective of coke is to acquire more customers and serve them
properly. While doing Horizontal Expansion take care to the competitors strategy.
The main competitor is PEPSI, who has opted Vertical Expansion to generate more
sell however Coke do not believe on Vertical Expansion because Vertical Expansion
has limited preview so COKE is great believer in Horizontal Expansion and this
strategy helped to the company to maintain its leadership in the soft drink industry.
India is a big country having diversified taste and appearance and same
character is reflected in their demography. Horizontal Expansion helps the company
to serve the more people and more customers touch point because in the waste
country many customers commute

42

SD: Functionality

Sales Support

Sales

Shipping and Transportation

Billing

Credit Management

Foreign Trade

Sales & Distribution

S&D Structure

Client

Company Code

Sales Area

Sales Organization

Distribution Channel

Division

Plant

Shipping Point

Loading Point

Internal Sales Structure

Sales Offices

Sales Groups

Salesperson

43

From April to October 2009 we shared early drafts of this report with over 50 senior
representatives from NGOs, academia, government, professional bodies and retail
customers at four stakeholder workshops, facilitated by the Oxford Health Alliance.
These stakeholders provided a series of recommendations both for our reporting in
this, our first report, and for our future reporting and strategy. We responded to many
of their recommendations for this report, including:

Greater focus on short-term action as well as medium - long-term

transformation

Clear future vision - what kind of company we want to be, what kind of
products we want to sell

Greater specificity and clarity on pledges - clearer timelines, scope and

nutritional definitions - so we can be held to account

Pledges covering what we can influence, as well as what we can control - for
example widening the retail availability of our healthier product.

Customer Master
o

Contains all of the information necessary for processing orders,

deliveries, invoices and customer payment

Every customer MUST have a master record

Customer Master Data is created by Sales Area

44

Sales Organization

Distribution Channel

Division

The customer master information is divided into 3 areas:

o

General Data

Company Code Data

Sales Area Data

Material Master
o

Contains all the information a company needs to manage about a

material

It is used by most components within the SAP system

Sales and Distribution

Materials Management

Production

Plant Maintenance

Accounting/Controlling

Quality Management

Material master data is stored in functional segments called Views

3.7.Limitations of study
1. The training was for shorter period of time that is why it was not possible to
carry out a detail study.

45

2. The sample size was limited.

3. The strategies of the company changes very frequently it is difficult to make
exact recommendation.
4. Behavior of many retailers was not co-operative.

46

4. FACTS AND FINDINGS

1. It is felt that outlet owner are more concern about schemes like offers on
cases, under crown schemes etc and Pepsi is providing them better schemes
then Coke.
2. It is felt that distributor is not doing his work honestly, he is not sending route
in the market properly. When the salespersons generate orders with retailer,
due to problem like salesman is on leave, vehicle is not available etc they
delay the order and retailer cancel the order with the distributors that affects
the sales volume.
3. Distributors are more concern about Wholesaler rather than Retailer.
4. As per policy, both companies are not entitled to collect competitor empty
bottles from the shops but Pepsi is not adhering to it. Therefore this
hampering the business of coca-cola in the market as Pepsi is more
preferable to carry on the business in a suave manner.

5. The distributor in its area is facilitating sales by establishing monopoly of

offers and schemes that do not reach to the outlet.
6. Due to infiltration from Moon Beverages (FOBO) in Jaipur from Delhi,
difference in the rates for the shopkeepers has been perceived as a major
problem in the market. The disparity is being created due to COBO and
FOBO.
7. Distributor rarely keeps any interest to work and communicate with the
customer who results in of the companys sales as well as image are getting
adversely affected.

47

5. ANALYSIS AND INTREPRETATION

(1) What Type of Channel do you hold?
a) E & D
b) Grocery
c) Convenience
d) Other
E&D
Grocery
Convenience
Other, Please specify

20
10
20
0

(2) What Type of outlet are you in?

a) Pepsi Exclusive
b) Coke Exclusive
c) Never sell cold drinks
d) Both a & b
Pepsi Exclusive

10

48

Coke Exclusive
Never sell cold drinks
Both a & b

10
10
20

(3) What is the chilling equipment you are using?

a) Coca cola Fridge
b) Pepsi Fridge
c) Own your Assert Fridge
d) Ice Box
e) Both (A & B).
Coca cola Fridge
Pepsi Fridge
Own your Assert Fridge

10
10
5
49

Ice Box
Both (A & B).

7
18

(4) Kindly rate the level of satisfaction on Communication from the company
a) Highly satisfied
b) Quite satisfied
c) Neither satisfied nor dissatisfied
d) Quite dissatisfied

Highly satisfied
Quite satisfied
Neither satisfied nor dissatisfied
Quite dissatisfied
Highly dissatisfied

6
19
8
13
4

50

(5) If a brand which you prefer is not delivered to you properly, then what do
you do?
a) Go for other brand
b) Call to distributor
c) Call to companys sales person
d) Stop selling that brand
e) Other actions
Go for other brand
Call to distributor
Call to companys sales person
Stop selling that brand
Other actions

32
0
13
5
0

51

52

(6) Which of the following promotions affect the sale mostly?

a) Scheme
b) Case refund
c) Price pack
d) Under Crown Scheme
e) Any Other
Scheme
Case refund
Price pack
Under Crown Scheme
Any Other

21
7
4
18
0

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(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any
affect of it on sales?
a) No
b) Yes
c) Cant Say
No
Yes
Cant Say

12
28
10

(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak
season, like Summer)?
a) Increase
54

b) Decrease
c) No effect
d) Cant say
Increase
Decrease
No effect
Cant say

7
6
22
15

6. SWOT ANALYSIS
Strength
Stronger brands in Cold drinks
Defining taste

55

 Dominant market shares

First mover advantage
Established distribution network.
Aggressive market development

Weaknesses
Bakeries and hotels do not appreciate the policy of price difference
between wholesalers and distributors.
It doesnt have tie ups with big hotel chains { like Oberoi and Taj }
The company does not distribute samples to potential users.
Service provided by the distributor is not up to the mark.
Visi coolers provided by the company are not adequate in number.

Opportunities
Impulse snacking is an Indian habit.
Attitude and disposable income changes are favourable to impulse drink.
Large youth population, 47% of urban India is growing dominant cold drink
consuming segment.
Child and gifting segments expected to grow at faster rate.
Great opportunity lies in the untapped new channels (school, colleges ,
clubs, hotels etc.

Threats

Aggressive marketing by competitors in hotels.

Foreign drinks have entered the market, and are eating up the market
share of coca cola.

7. CONCLUSION

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Coca - Cola beverage pvt. ltd. is worlds largest beverage company and as we know
that the coca-cola company is on that stage because of its large number of products
and by giving the customer complete satisfaction regarding taste and quality.
Now a day its necessary to show customer and to make believe them that our
product is better than others in the aspects which can be done in a better way
through merchandising the products.
As far as journey with the company, I grasped lots of knowledge within two months.
Because many of the company officials has assisted and given me the valuable
notes and experience of their life.
The primary objective of the my research is to analyze the horizontal expansion
strategy of Coke and at the end of the research I found that there is requirement of
changing the strategy for acquiring new customer for Coke but company should take
care of its existing customer because they are the main instrument of promotion for
any company so old customer should be fully satisfied with the company.

8. SUGGESTION AND RECOMMENDATION

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1. It is suggested that the company should embark upon improved marketing

strategies with special importance to the following
a. Sales person should be provided with all the facilities that will help them in
reaching shops that are generally inaccessible due to factors like distance,
time etc. For this purpose, the company should enable its marketing wings
in such a way that they can facilitate communication and accessibility to
penetrate into markets devoid of sales person services. A suggestion can
be forwarded to the company if they can afford to supply carrying vehicles
(delivery vans) to the sales persons in order to extend markets.
2. Another problem that must be taken care of is rivals competitive edge over
companys performance. Pepsi is going brilliantly with its strategy of bottle
collection in an unbiased way. This is actually getting detrimental to the
companys hold of overall market share of the area. So Coke is also
suggested to stop Pepsi for collecting Cokes bottles.
3. A major problem has been detected in the area surveyed. This problem can
be ranked in the first order as it is related to the distribution channel itself the
problem lies with the distributor who, in executing a strange dictate, has
established a monopoly in its business and not letting several critical factors
to be considered. These include pricing policy as a primary factor where the
distributor is setting the price on its own will and taking care of its own
business profitability. If Coke does not pay attention towards the matter, not
only it will affect its market populism in an ill way, also will it pave the way for
Pepsi to capture its lost market.
4. It is necessary for the company to resist FOBO of its vandalism of market
infiltration to save the image of the company in Jaipur and to maintain
controlled rates as well. For this purpose, two things need to be considered;
awareness in the market about distinction between COBO and FOBO and to
set an easily understandable demarcation to recognize the distinction. It is
suggested to the company to introduce code system which can exclusively
identify both COBO and FOBO. With it, shopkeepers should get the
acknowledgement from the companys side about checking the products
before keeping them to their stores.
5. A strange feedback from the market has, however, paused comprehension
about Cokes market. The survey has shown that the practice of delay for

58

supplying products in the market can create a compelling situation for the
shopkeepers to change or switch over from COKE. It is humbly recommended
that, in order to win over problems in the prospective market of Jaipur, Coke
should always step forward to verify and maintain its supply chain system in
striking a balance between what is produce and how much is sold.
6. The final round of question, however, revealed that schemes and offers will
always trigger shopkeepers enthusiasm in selling the product. Coke should
find out a cost effective solution so that it could extend favor to the
shopkeepers in keeping beverages from the company along with competitors
products.

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9. APPENDIX
(1) What Type of Channel do you hold?
e) E & D
f) Grocery
g) Convenience
h)

Other,

Please

specify

___________________________________________________
(2) What Type of outlet are you in?
e) Pepsi Exclusive
f) Coke Exclusive
g) Never sell cold drinks
h) Both a & b
(3) What is the chilling equipment you are using?
f) Coca cola Fridge
g) Pepsi Fridge
h) Own your Assert Fridge
i) Ice Box
(4) Kindly rate the level of satisfaction on Communication from the company
f) Highly satisfied
g) Quite satisfied
h) Neither satisfied nor dissatisfied
i) Quite dissatisfied

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(5) If a brand which you prefer is not delivered to you

properly, then what do

you do?
f) Go for other brand
g) Call to distributor
h) Call to companys sales person
i) Stop selling that brand
j) Other actions, please specify __________________________________________.

(6) Which of the following promotions affect the sale

mostly?

f) Scheme
g) Case refund
h) Price pack
i)

Any

Other,

Please

Specify

________________________________________________.
(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any
affect of it on sales?
d) No
e) Yes
f) Cant Say
(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak
season, like summer)?
e) Increase
f) Decrease
g) No effect
h) Cant say

61

(9) I. Kindly rate the behavior of sales man (Overall year) towards:
A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied
D) Dissatisfied E) Highly dissatisfied

10)

Delivery

(timeliness)

_____________________________________________________
a) Once in a week
b)

Twice

in

c) more than twice in a week

d) Once in a Month

11). Kindly rate the behavior of sales man (Peak season) towards:
A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied
D) Dissatisfied E) Highly dissatisfied

(12) Kindly rate the behavior of distributer (Overall year) towards:

A) Satisfied C) Neither satisfied nor dissatisfied
B) Dissatisfied D) Dont Know Distribute

62

week

10. Bibliography
Books:
Kothari, C.R, Research Methodology New Age International Publication, New Delhi
Naresh K. Malhotra Market Research
Kotler, Philip Marketing Management
Ramaswamy Marketing Management

Reference:
http://www.coca-cola.com
www.financialexpress.com
www.businessworld.com
www.cocacolacompany.com
www.cocacolaindia.com
http://www.google.com

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