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A

SUMMER TRAINING PROJECT REPORT


ON

“SUPPLY CHAIN MANAGEMENT”


At
UDAIPUR BEVERAGES LIMITED RICHHAI JABALPUR

Submitted towards the partial fulfillment for award of


Master of Business Administration Degree.
(2009-10)

SHERWOOD COLLEGE OF ENGINEERING & RESEARCH


TECHNOLOGY
BARABANKI

Affiliated to
U. P. TECHNICAL UNIVERSITY
Lucknow, U.P.

Submitted to Submitted by
R. SHRIVASTAVA ADITYA VIKRAM SINGH
Facutly, M.B.A. III Sem.
SCERT, Barabanki Roll No. 0928170002

Udaipur Beverages Limited, Jabalpur 1


SHERWOOD COLLEGE OF ENGINEERING &
RESEARCH TECHNOLOGY
BARABANKI

TO WHOM IT MAY CONCERN

This is to certify that Aditya Vikram Singh of MBA- 3rd Sem has
completed the Project Entitled “STUDY OF PROJECT SUPPLY CHAIN
MANAGEMENT” at “Udaipur Beverages Limited Jabalpur.” under my
guidance.

DATE: ANGA MUTTU


(Director)
SCERT, Barabanki

Udaipur Beverages Limited, Jabalpur 2


DECLARATION

I hereby declare that this work of project titled “study of


projected Supply Chain (June 2010 – July 2010)” is genuinely
based on the research work done by me in “Udaipur Beverages
Limited.”, Richhai Industrial area Jabalpur [M.P.] All the findings
are based on the data provided by the factory head there. The
findings are true to my knowledge and believe.

Date: - ADITYAVIKRAM SINGH.

MBA 3’rd Sem.

Roll. No.-0928170002

Udaipur Beverages Limited, Jabalpur 3


ACKNOWLEDGEMENT
I would like to thank Mr. Vikas Mittal Director & Mr.
Deepak Kumar, Factory Head, Udaipur Beverages Limited
(UBL) without whom a summer training with, would not
have been possible. I am grateful to him for having taken
time off his busy schedule and spoken to the concerned
person to get me this summer training. I express my
gratitude to the Udaipur Beverages Limited (UBL) for
having given me an opportunity to work with them and
make the best out of my summer training. I thank my
trainers, Mr. Vibhas and Mr. Nayier for having trained me
and constantly guided and supported me throughout the
training period. My heartfelt gratitude also goes out to
the staff and employees at U.B.L. for having co-operated
with me and guided me throughout the one and a half
months of my summer training period. I thank my
college, Sherwood College of Engineering Research &
Technology [SCERT] for having given me this opportunity
to put to practice, the theoretical knowledge that I
imparted from the program. I thank the summer training
co-coordinators, Mr. Retish Srivastava and Mr. Raman
Kumar for having guided and supported me through the
course of the summer training I take this opportunity to
thank my parents and friends who have been with me
and offered emotional strength and moral support.

Udaipur Beverages Limited, Jabalpur 4


PREFACE
One of the aspects of MBA program is the summer
training which took place at the end of the first year, and
for that purpose I choose Udaipur Beverages Limited, and
marketing as the field of my training. I got the topic of
“Supply Chain”

The MBA programme is well structured and integrated


course of business studies. The main objective of
practical training at MBA level is to develop skill in
student by supplement to the theoretical study of
business management in general. Industrial training
helps to gain real life knowledge about the industrial
environment and business practices. The MBA
programme provides student with a fundamental
knowledge of business and organizational functions and
activities as well as an exposure to strategic thinking of
management.
In every professional course, training is an important
factor. Professors give us theoretical knowledge of
various subjects in the college but we are practically
exposed of such subjects when we get the training in the
organization. It is only the training through which I come
to know that what an industry is and how it works. I can
learn about various departmental operations being

Udaipur Beverages Limited, Jabalpur 5


performed in the industry, which would, in return, help
me in the future when I will enter the practical field.
Training is an integral part of MBA and each and
every student has to undergo the training for 2 months in
a company and then prepare a project report on the same
after the completion of training.
During this whole training I got lot of experience and
came to know about the management practices in real
that how it differs from those of theoretical knowledge
and the practically in the real life.
In todays globalize world, where cutthroat
competition is prevailing in the market, theoretical
knowledge is not sufficient. Beside this one need to have
practical knowledge, which would help an individual in
his/her carrier activities and it is true that “Experience is
the best teacher”.

Udaipur Beverages Limited, Jabalpur 6


_____________________________________________

Chapter – 1 Introduction

Chapter – 2 Executive Summary

Chapter – 3 Introduction of Cocacola

Chapter – 4 Introduction of FMCG

4.1 A Brief Insight – The FMCG Industry in India

4.2 Beverage Industry in India A brief Insight

Chapter – 5 History of Coca – Cola

5.1 History

5.2 Company Profile

5.3 Generate in Coca – Cola

5.3.11883-1892 [Atlanla Begning]

5.3.2 1893-1904 [Beyond Atalnta]

5.3.31905-1918 [Safe Guarding the brand]

5.3.41919-1940 [The woodsuff legacy]

5.3.51941-1959 [The war & its legacy]

5.3.61960-1981 [Award of Customers]

5.3.71987-1989 [Diet coke & new coke]

5.3.81990-1999 [ New market & brands]

5.3.92000- & now [Coca – cola now]

Chapter – 6 History of Bottling

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6.1 Manifests for growth

6.1.1Values

6.1.2Mission

Chapter -7 Udaipur Bevearges limited

7.1 About the company

Chapter – 8 What is Supply Chain

8.1 Supply chain Modeling

8.2 Supply chain Management

Chapter – 9 Organizations

9.1 Organization structure of coca- cola in India

9.2 Organization Structure of the sales Department in


UBL

9.3 Manufacturing unit of UBL

9.4 Manufacturing Process

9.4.1Water treatment

9.4.2Syrup Preparation

9.4.3Container washing

9.4.4Mixing Proportioning

9.4.5Filling & Crowing

9.4.6Final Inspection

9.4.7Managing the waste water

9.4.8Market & Customer

Udaipur Beverages Limited, Jabalpur 8


9.4.9Employees, Plant & Machines

9.5 Manufacturing Press at UBL

9.6 Business Plan model at UBL

9.7 Distribution Network

9.7.1 Distribution Routes

9.7.2 Distribution System

9.7.3 Department Involved in the


Distribution Process

9.8 SWOT Analysis of UBL

9.8.1Strength

9.8.2Weakness

9.8.3Opportunities

9.8.4Threats

9.9 Competitor Analysis

9.9.1Current Market Position

9.9.2Factor Affecting Business

9.10 Competition to UBL

Chapter – 10 Products

10.1 Products and Pack Sizes

10.2 Packaging

Chapter – 11 Advertising

11.1 Brand Ambassadors

Udaipur Beverages Limited, Jabalpur 9


Chapter – 12 Prospect Minute maid Pulpy Orange

12.1 Objective of the study

12.2 About the product

12.3 Methodology

12.4 Procedure

12.5 Findings

12.5.1Graph – 1

12.5.2Graph – 2

12.5.3Graph – 3

12.5.4Graph – 4

12.5.5Graph – 5

12.6 Additional Details

12.7 Suggestions

Chapter – 13 Management Style

Chapter – 14 Annexure

Chapter – 15 Objective of the study

Chapter – 16 Conclusion

Chapter – 17 Appendix

Chapter – 18 Management style

Chapter – 19 Data Sources and References

Udaipur Beverages Limited, Jabalpur 10


Chapter - 1

INTRODUCTION
With the development of world and human being, the taste,
need and the attitude of Human being also changes. India is one
of the common market in the world with a population of more
than one billion. Soft drink is a popular common product, which
is generally purchased by consumers for quenching their thirst in
summer, and also to have cooling Refreshment As far as the
market of soft drinks is concerned, it is facing cutthroat
Competition from the larger number of soft drinks available in
the market. Different brands are available in every segment of
flavors, but the attitudes of the consumers differ from each other
due to several factors. Every company tries to increase their
market share and their sales Volume. Discounting system
followed by the companies proved to be an essential factor to
boost up the purchases made by the retailers.

The companies try to attract the retailers to purchase more


by providing some schemes or incentives or cash/card discount.
If more discount or any other incentive scheme is given to the
outlets, they make purchases to avail that offer. Therefore, it is
essential for any company to have an efficient and effective
discounting system.

Distribution is the spine of any FMCG company. The main


function of a retailer is to bridge the gap between the supplier
and the customer. The central focus of distribution is to increase

Udaipur Beverages Limited, Jabalpur 11


the efficiency of time, place, and delivery utility. For any FMCG
product it is essential to have a good distribution network which
should be better than that of its competitors.

Distribution is the key area for any FMCG business. For a


smooth distribution network, it is essential to keep the retail
outlets satisfied which in turn mainly depend upon the
profitability. Their profitability is checked by keeping a
satisfied profit margin for them.

Apart from that, the company also provides discount on


purchase of different pack sizes to some HVOs which in turn
increases their profit margin. Sometimes the company also
provides incentives to the outlets which make frequent and high
purchases. To meet stiff and challenging competition from some
of the other brands, it is essential for the company to have an
effective and efficient distribution network. Therefore, the
company tries to keep the outlets satisfied by offering discounts
and some other incentive schemes from time to time.

1.1 OBJECTIVES
1.1.1 Primary Objectives

 To find out any kind of miss representation being done


by salesmen or by distributors related to daily sales by
making out their own personal benefits from the
discounting system.

 To compare the discounts given to HVOs on the basis


of their sales volume.

Udaipur Beverages Limited, Jabalpur 12


 To make proposals to minimize the revenue leakages
and this will help the company in saving its funds.

1.1.2 Secondary Objectives

 To study the discounting policies of the company.

 To know about the different pack sizes being sold by


the company

 To find out the outlets where the company is offering


high discounts.

 To analyze the discount rates offered to HVOs.

 To find out whether they are actually getting the


products at the pre – decided discounted price or not.

1.2 METHODOLOGY
1.2.1: Understanding Phase:

This being the primary phase of the study involves the


understanding of the basic factors that affect discounting. In
FMCG businesses, there are many factors that affect the
discounting policies directly or indirectly and it is essential to
have the knowledge of all these factors to understand the
discounting system. Every company has their own terms and
ways of doing things. It is essential to have an in depth
knowledge about everything to understand different prospective
of business. This phase includes three stages:

Udaipur Beverages Limited, Jabalpur 13


Stage1: To have the knowledge of all the factors that affects the
discount to be given to different HVOs. This includes factors like
sales, competitor’s strategy, negotiation, etc.

Stage2: To collect the data of sales and discounts of different


HVOs. This includes the collection of data of sales and discounts
for the year 2006 and 2007 of different HVOs being served by
the company. It includes direct as well as indirect HVOs.

Stage3: This stage involves the short-listing of the HVOs for


personal visits and for making inter comparison of the discounts
of the HVOs on the basis of their sales volume.

1.2.2 Analysis phase:

After being familiar with the basics of the business, the


next part of the project work includes personal market visits and
visits through route rides to detect any kind of wrong practices
being adopted by the salesmen and the distributors to fetch out
their own personal benefits from the discounting system. It also
includes analyzing the discounts given to the short listed HVOs
and to make a comparative study of the discount and sales
volume of the HVOs.

1.2.3 Interpretation Phase:-

After carefully analyzing the discounts of various


HVOs, the next part involves finding out the variations where
some HVOs are getting higher discounts on different pack sizes
as compared to other short listed HVOs and recommendations
have to be made as to how the leakages can be reduced and a

Udaipur Beverages Limited, Jabalpur 14


fair discounting system can be maintained. The basic aim of this
stage is to give suggestions that can work as decision making
information which will be solely for the use of the organization.

Udaipur Beverages Limited, Jabalpur 15


Chapter - 2

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 world’s leading manufacturer, marketer and
distributor of non-alcoholic beverage concentrates and syrups,
used to produce nearly 400 beverage brands. It sells beverage
concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. 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 Jacob’s Pharmacy and customers bought the drink for
five cents at the soda fountain. Carbonated water was teamed
with the new syrup, whether by accident or otherwise, producing
a drink that was proclaimed “delicious and refreshing”, a theme
that continues to echo today wherever Coca-Cola is enjoyed.
Coca-Cola originated as a soda fountain beverage in 1886 selling
for five cents a glass. Early growth was impressive, but it was
only when a strong bottling system developed that Coca-Cola
became the world-famous brand it is today. 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

Udaipur Beverages Limited, Jabalpur 16


new liberalized and deregulated environment in 1993, Coca-Cola
made its re-entry into India through its 100% owned subsidiary,
HCCBPL, the Indian bottling arm of the Coca-Cola Company. The
main objective of this study lies in understanding the
organization and studying and understanding the consumers’
perception and opinion about the latest product, Minute Maid
Pulpy Orange, introduced into India, by the Coca-Cola Company.
A consumer sampling involving 5.5 lakh people was conducted in
a span of 30 days across major cities in order to give the product
the required marketing push and to recognize the prospective
consumers and their opinion in order to develop and market the
product in a better way in the near future. The methodology
used in studying and understanding the perceived views of
consumers towards the product was ‘SAMPLING’. The findings of
the activity have been drawn out in form of graphs and
suggestions have been offered there from.

Udaipur Beverages Limited, Jabalpur 17


Chapter - 3

INTRODUCTION OF COCA-COLA
Coca-Cola, the product that has given the world its
best-known taste was born in Atlanta, Georgia, on May 8, 1886.
Coca-Cola Company is the world’s leading manufacturer,
marketer and distributor of non-alcoholic beverage concentrates
and syrups, used to produce nearly 400 beverage brands. It sells
beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain
wholesalers. The Company’s beverage products comprises of
bottled and canned soft drinks as well as concentrates, syrups
and not-ready-to-drink powder products. In addition to this, it
also produces and markets sports drinks, tea and coffee. The
Coca-Cola Company began building its global network in the
1920s.

Now Operating in more than 200 countries and


producing nearly 400 brands, the Coca-Cola system has
successfully applied a simple formula on a global scale: “Provide
a moment of refreshment for a small amount of money- a billion
times a day.”

The Coca-Cola Company and its network of bottlers


comprise the most sophisticated and pervasive production and
distribution system in the world. More than anything, that
system is dedicated to people working long and hard to sell the
products manufactured by the Company. This unique worldwide

Udaipur Beverages Limited, Jabalpur 18


system has made The Coca-Cola Company the world’s premier
soft-drink enterprise. From Boston to Beijing, from Montreal to
Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For
more than 115 years, Coca-Cola has created a special moment
of pleasure for hundreds of millions of people every day.

The Company aims at increasing shareowner value


over time. It accomplishes this by working with its business
partners to deliver satisfaction and value to consumers through
a worldwide system of superior brands and services, thus
increasing brand equity on a global basis. They aim at managing
their business well with people who are strongly committed to
the Company values and culture and providing an appropriately
controlled environment, to meet business goals and objectives.
The associates of this Company jointly take responsibility to
ensure compliance with the framework of policies and protect
the Company’s assets and resources whilst limiting business
risks.

Chapter - 4

Udaipur Beverages Limited, Jabalpur 19


INTRODUCTION OF FMCG
4.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as


Consumer Packaged Goods (CPG) is products that have a quick
turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other
products.

The Indian FMCG industry witnessed significant changes


through the 1990s. Many players had been facing severe
problems on account of increased competition from small and
regional players and from slow growth across its various product
categories. As a result, most of the companies were forced to
revamp their product, marketing, distribution and customer
service strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG
industry had changed significantly.

With the liberalization and growth of the Indian economy,


the Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media, such as
television and the Internet. Apart from this, social changes such
as increase in the number of nuclear families and the growing
number of working couples resulting in increased spending
power also contributed to the increase in the Indian consumers'
personal consumption. The realization of the customer's growing
awareness and the need to meet changing requirements and

Udaipur Beverages Limited, Jabalpur 20


preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies.
These changes had a positive impact, leading to the rapid
growth in the FMCG industry. Increased availability of retail
space, rapid urbanization, and qualified manpower also boosted
the growth of the organized retailing sector.

HUL led the way in revolutionizing the product, market,


distribution and service formats of the FMCG industry by
focusing on rural markets, direct distribution, creating new
product, distribution and service formats.

The FMCG sector also received a boost by government led


initiatives in the 2003 budget such as the setting up of excise
free zones in various parts of the country that witnessed firms
moving away from outsourcing to manufacturing by investing in
the zones.

Though the absolute profit made on FMCG products is


relatively small, they generally sell in large numbers and so the
cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG
does not suffer from mass layoffs every time the economy starts
to dip. A person may put off buying a car but he will not put off
having his dinner.

Unlike other economy sectors, FMCG share float in a steady


manner irrespective of global market dip, because they generally
satisfy rather fundamental, as opposed to luxurious needs. The
FMCG sector, which is growing at the rate of 9% is the fourth

Udaipur Beverages Limited, Jabalpur 21


largest sector in the Indian Economy and is worth Rs.93000
corers. 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 corers.

The sector being one of the biggest sectors of the Indian


Economy provides up to 4 million jobs.

The FMCG sector consists of the following categories:

• Personal Care- Oral care, Hair care, Wash (Soaps),


Cosmetics and Toiletries, Deodorants and Perfumes, Paper
products (Tissues, Diapers, Sanitary products) and Shoe
care; the major players being; Hindustan Lever Limited,
Godrej Soaps, Colgate, Marico, Dabur and Procter &
Gamble.

• Household Care- Fabric wash (Laundry soaps and


synthetic detergents), Household cleaners
(Dish/Utensil/Floor/Toilet cleaners), Air fresheners,
Insecticides and Mosquito repellants, Metal polish and
Furniture polish; the major players being; Hindustan Lever
Limited, Nirma and Ricket Colman.

• Branded and Packaged foods and beverages- Health


beverages, Soft drinks, Staples/Cereals, Bakery products
(Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-
creams, Tea, Coffee, Processed fruits, Processed
vegetables, Processed meat, Branded flour, Bottled water,

Udaipur Beverages Limited, Jabalpur 22


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

4.2: BEVERAGE In India INDUSTRY IN INDIA: A BRIEF


INSIGHT

, beverages form an important part of the lives of people.


It is an industry, in which the players constantly
innovate, in order to come up with better products to
gain more consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

FIGURE: 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

Udaipur Beverages Limited, Jabalpur 23


right person. The different ways of segmenting it are as
follows:

• Alcoholic, non-alcoholic and sports beverages

• Natural and Synthetic beverages

• In-home consumption and out of home on premises


consumpion.

• Age wise segmentation i.e. beverages for kids, for


adults and for senior citizens

• Segmentation based on the amount of consumption


i.e. high levels of consumption and low levels of
consumption.

If the behavioral patterns of consumers in India are


closely noticed, it could be observed that consumers
perceive beverages in two different ways i.e. beverages
are a luxury and that beverages have to be consumed
occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to
leverage the beverage industry, it is important to
address this issue so as to encourage regular
consumption as well as and to make the industry more
affordable.

Four strong strategic elements to increase


consumption of the products of the beverage industry in
India are:

Udaipur Beverages Limited, Jabalpur 24


• The quality and the consistency of beverages needs
to be enhanced so that consumers are satisfied and
they enjoy consuming beverages.

• The credibility and trust needs to be built so that


there is a very strong and safe feeling that the
consumers have while consuming the beverages.

• Consumer education is a must to bring out benefits


of beverage consumption whether in terms of health,
taste, relaxation, stimulation, refreshment, well-
being or prestige relevant to the category.

• Communication should be relevant and trendy so


that consumers are able to find an appeal to go out,
purchase and consume.

The beverage market has still to achieve greater


penetration and also a wider spread of distribution. It is
important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up
to the overall growth of the food and beverage industry
in the economy.

Udaipur Beverages Limited, Jabalpur 25


Chapter - 5

THE COCA-COLA COMPANY


5.1: HISTORY

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 Jacob’s Pharmacy and customers bought the
drink for five cents at the soda fountain. Carbonated
water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was
proclaimed “delicious and refreshing”, a theme that
continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M.


Robinson, suggested the name and penned “Coca-Cola”
in the unique flowing script that is famous worldwide
even today. He suggested that “the two Cs would look
well in advertising.” The first newspaper ad for Coca-Cola
soon appeared in The Atlanta Journal, inviting thirsty
citizens to try “the new and popular soda fountain
drink.” Hand-painted oil cloth signs reading “Coca-Cola”
appeared on store awnings, with the suggestions “Drink”

Udaipur Beverages Limited, Jabalpur 26


added to inform passersby that the new beverage was for
soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine


drinks per day. The first year, Dr. Pemberton sold 25
gallons of syrup, shipped in bright red wooden kegs. Red
has been a distinctive color associated with the soft drink
ever since. For his efforts, Dr. Pemberton grossed $50
and spent $73.96 on advertising. Dr. Pemberton never
realized the potential of the beverage he created. He
gradually sold portions of his business to various
partners and, just prior to his death in 1888, sold his
remaining interest in Coca-Cola to Asa G. Candler, an
entrepreneur from Atlanta.

By the year 1891, Mr. Candler proceeded to buy


additional right and acquire complete ownership and
control of the Coca-Cola business. Within four years, his
merchandising flair had helped expand consumption of
Coca-Cola to every state and territory after which he
liquidated his pharmaceutical business and focused his
full attention on the soft drink. With his brother, John S.
Candler, John Pemberton’s former partner Frank
Robinson and two other associates, Mr. Candler formed a
Georgia corporation named the Coca-Cola Company. The
trademark “Coca-Cola,” used in the marketplace since
1886, was registered in the United States Patent Office
on January 31, 1893.

Udaipur Beverages Limited, Jabalpur 27


The business continued to grow, and in 1894, the
first syrup manufacturing plant outside Atlanta was
opened in Dallas, Texas. Others were opened in Chicago,
Illinois, and Los Angeles, California, the following year. In
1895, three years after The Coca-Cola Company’s
incorporation, Mr. Candler announced in his annual
report to share owners that “Coca-Cola is now drunk in
every state and territory in the United States.”

As demand for Coca-Cola increased, the Company


quickly outgrew its facilities. A new building erected in
1898 was the first headquarters building devoted
exclusively to the production of syrup and the
management of the business. In the year 1919, the Coca-
Cola Company was sold to a group of investors for $25
million. Robert W. Woodruff became the President of the
Company in the year 1923 and his more than sixty years
of leadership took the business to unsurpassed heights of
commercial success, making Coca-Cola one of the most
recognized and valued brands around the world.

5.2: COMPANY PROFILE

Coca-Cola (also known as Coke, a name that was


trademarked by The Coca-Cola Company after it was
discovered many people called it by that particular name)
is a very popular cola (a carbonated soft drink) sold in
stores, restaurants and vending machines in more than
200 countries. It is produced by the Coca-Cola Company

Udaipur Beverages Limited, Jabalpur 28


(NYSE: KO), which is also often referred to as simply
Coca-Cola or Coke. Coke is one of the world’s most
recognizable and widely sold commercial brands; its
major rival is Pepsi.

Coke was originally intended as a patent medicine


when it was invented in the late 19th century, 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.
Although faced with critiques of its health effects and
various allegations of wrongdoing by the company, Coca-
Cola has remained a popular soft drink to the present day
It was initially sold as a patent medicine for five cents a
glass at soda fountains, which were popular in the United
States at the time thanks to a belief that carbonated
water was good for the health. The first sales were made
at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886,
and for the first eight months only nine drinks were sold
each day. Coca-Cola was sold in bottles for the first time
on March 12, 1894, and cans of Coke first appeared in
1955. By 1888, three versions of Coca-Cola - sold by three
separate businesses were on the market. On February 7,
2005, the Coca-Cola Company announced that in the
second quarter of 2005 they planned a launch of a Diet
Coke product sweetened with the artificial sweetener
sucralose ("Splenda"), the same sweetener currently
used in Pepsi One. The company actually produces

Udaipur Beverages Limited, Jabalpur 29


concentrate for Coca-Cola, which is then sold to various
Coca-Cola bottlers throughout the world. The bottlers,
who hold territorially-exclusive contracts with the
company, produce finished product in cans and bottles
from the concentrate in combination with filtered water
and sweeteners. The bottlers then sell, distribute and
merchandise Coca- Cola in cans and bottles to retail
stores and vending machines. Such bottlers include Coca-
Cola Enterprises, which is the single largest Coca-Cola
bottler in North America and Europe. The Coca-Cola
Company also sells concentrate for fountain sales to
major restaurants and food service distributors.

The Coca-Cola Company has on occasion introduced


other cola drinks under the Coke brand name. The most
famous of these is Diet Coke, which has become a major
diet cola but others exist, such as Cherry Coke, Coke
Zero, and Vanilla Coke. The Coca-Cola Company owns and
markets other soft drinks that do not carry the Coca-Cola
branding, such as Sprite, Fanta, and others. The actual
production and distribution of Coca-Cola follows a
franchising model. The Coca-Cola Company only produces
a syrup concentrate, which it sells to various bottlers
throughout the world who hold Coca-Cola franchises for
one or more geographical areas. The bottlers produce the
final drink by mixing the syrup with filtered water and
sugar (or artificial sweeteners) and fill it into cans and
bottles, which the bottlers then sell and distribute to

Udaipur Beverages Limited, Jabalpur 30


retail stores, vending machines, restaurants and food
service distributors. The bottlers are normally also
responsible for all advertisement and other sales
initiatives within their areas. Pepsi is often second to
Coke in terms of sales, but outsells Coca-Cola in some
localities. In India, Coca-Cola ranks third behind the
leader, Pepsi-Cola, and local drink Thums Up. However,
The Coca-Cola Company purchased Thums Up in 1993.
The products of the company reach consumers and
customers around the world through a vast distribution
network made up of local bottling companies. These
bottlers are located around the world, and most are
independent businesses. Using syrups, concentrates and
beverage bases produced by the Coca-Cola Company,
their global bottling system packages and markets
products, then distributes them to more than 14 million
retail outlets worldwide. The Coca- Cola Company is
committed to assisting its bottlers with the functions of
an efficient bottling operation and initiating quality
systems to ensure the highest quality products for their
consumers. The trademark "Coca-Cola" was registered
with the U.S. Patent and Trademark Office in 1893,
followed by "Coke" in 1945. The unique contour bottle,
familiar to consumers everywhere, was granted
registration as a trademark by the U.S. Patent and
Trademark Office in 1977; an honor awarded very few
packages. The most valuable assets happen to be the

Udaipur Beverages Limited, Jabalpur 31


trademarks they possess. For Coca-Cola, the drunken soft
drink on earth is one of the world s best-known and most
admired trademarks, recognized by more than 90 percent
of the world s population. Interestingly, the world that is
touched by the cherished drinks for every moment, the
Coca-Cola trademarks happen not only to be their most
valuable assets but of the entire earth. The business
system of the Company in India directly employs
approximately 6,000 people, and indirectly creates
employment for many more in related industries through
our vast procurement, supply and distribution system. 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. The term soft drink
originally applied to carbonated drinks made from
concentrates, although it now commonly refers to almost
any cold drink that does not contain alcohol.

Udaipur Beverages Limited, Jabalpur 32


Udaipur Beverages Limited

Is an Indian subsidiary of the US based Coca-Cola


Company. The company-owned Bottling arm of the Indian
Operations, Udaipur Beverages Limited is responsible for
the manufacture, sale and distribution of beverages
across the country. Coca-Cola India is among the
country’s top international investors, having invested in
2003 for its operations. It is the world’s largest selling
soft drink since 1886. The Coca-Cola Company returned
to India in 1993 after a gap of 16 years giving new Thums
up to the Indian Soft Drink Market and took over the
ownership of the nation's top soft-drink brands and
bottling network. The vast Indian operations comprises
25 wholly company owned bottling operations and
another 24 franchisee owned bottling operations and a
network of 21 contract packers also manufactures a
range of products for the Company.

5.3: GENERATIONS IN COCA COLA


5.3.1: 1886-1892

ATLANTA BEGINNING

It was 1886, and in New York Harbor, workers were


constructing the Statue of Liberty. Eight hundred miles
away, another great American symbol was about to be
unveiled. Like many people who change history, John
Pemberton, an Atlanta pharmacist, was inspired by

Udaipur Beverages Limited, Jabalpur 33


simple curiosity. One afternoon, he stirred up a fragrant,
caramel-colored liquid and, when it was done, he carried
it a few doors down to Jacobs' Pharmacy. Here, the
mixture was combined with carbonated water and
sampled by customers who all agreed -- this new drink
was something special. So Jacobs' Pharmacy put it on
sale for five cents a glass. Pemberton's bookkeeper,
Frank Robinson, named the mixture Coca Cola®, and
wrote it out in his distinct script. To this day, Coca-Cola is
written the same way. In the first year, Pemberton sold
just 9 glasses of Coca-Cola a day. A century later, The
Coca- Cola Company has produced more than 10 billion
gallons of syrup. Unfortunately for Pemberton, he died in
1888 without realizing the success of the beverage he
had created. Over the course of three years, 1888-1891,
Atlanta businessman Asa Griggs Candler secured rights
to the business for a total of about $2,300. Candler would
become the Company's first president, and the first to
bring real vision to the business and the brand.

5.3.2: 1893-1904

BEYOND ATLANTA

Coca cola hires first celebrity spoke person music


hall performer Hilda Clark Asa G. Candler, a natural born
salesman, transformed Coca-Cola from an invention into
a business. He knew there were thirsty people out there,
and Candler found brilliant and innovative ways to

Udaipur Beverages Limited, Jabalpur 34


introduce them to this exciting new refreshment. He gave
away coupons for complimentary first tastes of Coca-
Cola, and outfitted distributing pharmacists with clocks,
urns, calendars and apothecary scales bearing the Coca-
Cola brand. People saw Coca-Cola everywhere, and the
aggressive promotion worked. By 1895, Candler had built
syrup plants in Chicago, Dallas and Los Angeles.

Inevitably, the soda's popularity led to a demand for


it to be enjoyed in new ways. In 1894, a Mississippi
businessman named Joseph Biedenharn became the first
to put Coca-Cola in bottles. He sent 12 of them to
Candler, who responded without enthusiasm. Despite
being a brilliant and innovative businessman, he didn't
realize then that the future of Coca-Cola would be with
portable, bottled beverages customers could take
anywhere. He still didn't realize it five years later, when,
in 1899, two Chattanooga lawyers, Benjamin F. Thomas
and Joseph B. Whitehead, secured exclusive rights from
Candler to bottle and sell the beverage -- for the sum of
only one dollar.

5.3.3: 1905-1918

SAFEGUARDING THE BRAND

Coca cola enjoyed in 8 countries worldwide. To


combat copycats coca cola develops unique bottle
Imitation may be the sincerest form of flattery, but The
Coca-Cola Company was none too pleased about the

Udaipur Beverages Limited, Jabalpur 35


proliferation of copycat beverages taking advantage of
its success. This was a great product, and a great brand.
Both needed to be protected.

Advertising focused on the authenticity of Coca-Cola,


urging consumers to "Demand the genuine" and "Accept
no substitute."

The Company also decided to create a distinctive bottle


shape to assure people they were actually getting a real
Coca-Cola. The Root Glass Company of Terre Haute,
Indiana, won a contest to design a bottle that could be
recognized in the dark. In 1916, they began
manufacturing the famous contour bottle. The contour
bottle, which remains the signature shape of Coca-Cola
today, was chosen for its attractive appearance, original
design and the fact that, even in the dark, you could
identify the genuine article. As the country roared into
the new century, The Coca-Cola Company grew rapidly,
moving into Canada, Panama, Cuba, Puerto Rico, France,
and other countries and U.S. territories. In 1900, there
were two bottlers of Coca-Cola; by 1920, there would be
about 1,000.

5.3.4: 1919-1940

THE WOODRUFF LEGACY

Coca cola enjoyed in 53 countries world wide. It


introduced 6 packs. In 1925 6000000 drinks per day.

Udaipur Beverages Limited, Jabalpur 36


Perhaps no person had more impact on The Coca-Cola
Company than Robert Woodruff. In 1923, four years after
his father Ernest purchased the Company from Asa
Candler, Woodruff became the Company president. While
Candler had introduced the U.S. to Coca-Cola, Woodruff
would spend more than 60 years as Company leader
introducing the beverage to the world beyond. Woodruff
was a marketing genius who saw opportunities for
expansion everywhere. He led the expansion of Coca-Cola
overseas and in 1928 introduced Coca-Cola to the
Olympic Games for the first time when Coca-Cola traveled
with the U.S. team to the 1928 Amsterdam Olympics.
Woodruff pushed development and distribution of the
six-pack, the open top cooler, and many other
innovations that made it easier for people to drink Coca-
Cola at home or away. This new thinking made Coca-Cola
not just a huge success, but a big part of people's lives.

5.3.5: 1941-1959

THE WAR AND ITS LEGACY

Coca cola enjoyed in 120 countries world wide.


Introducing Coke. In 1961 Sprite is introduced. 1963 Tab
Company’s first diet soft drink is introduced In 1941,
America entered World War II. Thousands of men and
women were sent overseas. The country, and Coca-Cola,
rallied behind them. Woodruff ordered that "every man in
uniform gets a bottle of Coca-Cola for 5 cents, wherever

Udaipur Beverages Limited, Jabalpur 37


he is, and whatever it costs the Company." In 1943,
General Dwight D. Eisenhower sent an urgent cablegram
to Coca-Cola, requesting shipment of materials for 10
bottling plants.

During the war, many people enjoyed their first taste


of the beverage, and when peace finally came, the
foundations were laid for Coca-Cola to do business
overseas. Woodruff’s vision that Coca-Cola be placed
within "arm's reach of desire," was coming true -- from
the mid-1940s until 1960, the number of countries with
bottling operations nearly doubled. Post-war America
was alive with optimism and prosperity.

Coca-Cola was part of a fun, carefree American


lifestyle, and his imagery of its advertising -- happy
couples at the drive-in, carefree moms driving big yellow
convertibles -- reflected the spirit of the times.

5.3.6: 1960-1981

A WORLD OF CUSTOMERS

Coca cola enjoyed in 163 countries world wide. It


introduced can in 1960. In 1981 Roberto c. Goizueta
became chairman and CEO of the coca cola company After
70 years of success with one brand, Coca-Cola®, the
Company decided to expand with new flavors: Fanta®,
originally developed in the 1940s and introduced in the

Udaipur Beverages Limited, Jabalpur 38


1950s; Sprite® followed in 1961, with TAB® in 1963 and
Fresca® in 1966.

In 1960, The Coca-Cola Company acquired The


Minute Maid Company, adding an entirely new line of
business -- juices -- to the Company. The Company's
presence worldwide was growing rapidly, and year after
year, Coca-Cola found a home in more and more places:
Cambodia, Montserrat, Paraguay, Macau, Turkey and
more. Advertising for Coca-Cola, always an important and
exciting part of its business, really came into its own in
the 1970s, and reflected a brand connected with fun,
friends and good times. The international appeal of Coca-
Cola was embodied by a 1971 commercial, where a group
of young people from all over the world gathered on a
hilltop in Italy to sing "I'd Like to Buy the World a Coke."
In 1978, The Coca-Cola Company was selected as the only
Company allowed to sell packaged cold drinks in the
People's Republic of China.

5.3.7: 1982-1989

DIET COKE AND NEW COKE

Coca cola enjoyed in 165 countries world wide. In


1982 diet coke is introduced.

The 1980s -- the era of legwarmers, headbands and


the fitness craze, and a time of much change and
innovation at The Coca-Cola Company. In 1981, Roberto

Udaipur Beverages Limited, Jabalpur 39


C. Goizueta became chairman of The Board of Directors
and CEO of The Coca-Cola Company. Goizueta, who fled
Castro's Cuba in 1961, completely overhauled the
Company with a strategy he called "intelligent risk
taking." Among his bold moves was organizing the
numerous U.S. bottling operations into a new public
company, Coca-Cola Enterprises Inc. He also led the
introduction of diet Coke®, the very first extension of the
Coca-Cola trademark; within two years, it had become the
top lowcalorie drink in the world, second in success only
to Coca-Cola. One of Goizueta's other initiatives, in 1985,
was the release of a new taste for Coca-Cola, the first
change in formulation in 99 years. In taste tests, people
loved the new formula, commonly called “new Coke.” In
the real world, they had a deep emotional attachment to
the original, and they begged and pleaded to get it back.
Critics called it the biggest marketing blunder ever. But
the Company listened, and the original formula was
returned to the market as Coca-Cola classic®, and the
product began to increase its lead over the competition --
a lead that continues to this day.

5.3.8: 1990-1999

NEW MARKETS AND BRANDS

In 1993 pet bottles are introduced. Coca cola enjoyed


in 200 countries world wide.

Udaipur Beverages Limited, Jabalpur 40


The 1990s were a time of continued growth for The
Coca-Cola Company. The Company's long association with
sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup™
football (soccer), Rugby World Cup and the National
Basketball Association. Coca-Cola classic became the
Official Soft Drink of NASCAR racing, connecting the
brand with one of the world's fastest growing and most
popular spectator sports. And 1993 saw the introduction
of the popular "Always Coca-Cola" advertising campaign,
and the world met the lovable Coca-Cola Polar Bear for
the first time. New markets opened up as Coca-Cola
products were sold in East Germany in 1990 and returned
to India in 1993. New beverages joined the Company's
line-up, including Powerade® sports drink, Qoo®
children's fruit drink and Dasani® bottled water. The
Company's family of brands further expanded through
acquisitions, including Limca®, Maaza® and Thums Up®
in India, Barq's® root beer in the U.S., Inca Kola® in
Peru, and Cadbury Schweppes'® beverage brands in
more than 120 countries around the world. By 1997, the
Company already sold 1 billion servings of its products
every day, yet knew that opportunity for growth was still
around every corner.

5.3.9: 2000 and Now

COCA COLA NOW

Udaipur Beverages Limited, Jabalpur 41


In 1886, Coca-Cola® brought refreshment to patrons
of a small Atlanta pharmacy. Now well into its second
century, the Company's goal is to provide magic every
time someone drinks one of its more than 400 brands.
Coca-Cola has fans from Boston to Budapest to Bahrain,
drinking brands such as Ambasa, Vegitabeta and
Frescolita. In the remotest comers of the globe, you can
still find Coca-Cola. Coca- Cola is committed to local
markets, paying attention to what people from different
cultures and backgrounds like to drink, and where and
how they want to drink it. With its bottling partners, the
Company reaches out to the local communities it serves,
believing that Coca-Cola exists to benefit and refresh
everyone it touches.From the early beginnings when just
nine drinks a day were served, Coca-Cola has grown to
the world’s most ubiquitous brand, with more than 1.4
billion beverage servings sold each day. When people
choose to reach for one of The Coca-Cola Company
brands, the Company wants that choice to be exciting
and satisfying, every single time.

6.1: HISTORY OF BOTTLING


Coca-Cola originated as a soda fountain beverage in
1886 selling for five cents a glass. Early growth was
impressive, but it was only when a strong bottling system
developed that Coca-Cola became the world-famous
brand it is today.

Udaipur Beverages Limited, Jabalpur 42


YEAR WISE HISTORY OF BOTTLING:
YEAR 1894: A MODEST START FOR A BOLD IDEA

In a candy store in Vicksburg, Mississippi, brisk sales


of the new fountain beverage called Coca-Cola impressed
the store's owner, Joseph A. Biedenharn. He began
bottling Coca-Cola to sell, using a common glass bottle
called a Hutchinson. Biedenharn sent a case to Asa
Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews
already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.

YEAR 1899: THE FIRST BOTTLING AGREEMENT

Two young attorneys from Chattanooga, Tennessee


believed they could build a business around bottling
Coca-Cola. In a meeting with Candler, Benjamin F.
Thomas and Joseph B. Whitehead obtained exclusive
rights to bottle Coca-Cola across most of the United
States for a sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.

YEARS 1900-1909: RAPID GROWTH

The three pioneer bottlers divided the country into


territories and sold bottling rights to local entrepreneurs.
Their efforts were boosted by major progress in bottling

Udaipur Beverages Limited, Jabalpur 43


technology, which improved efficiency and product
quality. By 1909, nearly 400 Coca-Cola bottling plants
were operating, most of them family-owned businesses.
Some were open only during hot-weather months when
demand was high.

YEAR 1916: BIRTH OF THE CONTOUR BOTTLE

Bottlers worried that Coca-Cola's straight-sided


bottle was easily confused with imitators. A group
representing the Company and bottlers asked glass
manufacturers to offer ideas for a distinctive bottle. A
design from the Root Glass Company of Terre Haute,
Indiana won enthusiastic approval. The Contour Bottle
became one of the few packages ever granted trademark
status by the U.S. Patent Office. Today, it is one of the
most recognized icons in the world.

IN THE 1920S: BOTTLING OVERTAKES FOUNTAIN


SALES

As the 1920s dawned; more than 1,000 Coca-Cola


bottlers were operating in the U.S. Their ideas and zeal
fueled steady growth. Six-bottle cartons were a huge hit
starting in 1923. A few years later, open-top metal
coolers became the forerunners of automated vending
machines. By the end of the 1920s, bottle sales of Coca-
Cola exceeded fountain sales.

Udaipur Beverages Limited, Jabalpur 44


IN THE 1920S AND 1930S: INTERNATIONAL
EXPANSION

Led by Robert W. Woodruff, chief executive officer


and chairman of the Board, the Company began a major
push to establish bottling operations outside the U.S.
Plants were opened in France, Guatemala, Honduras,
Mexico, Belgium, Italy and South Africa. By the time
World War II began, Coca-Cola was being bottled in 44
countries.

In the 1940s: Post-war growth during the war, 64


bottling plants were set up around the world to supply
the troops. This followed an urgent request for bottling
equipment and materials from General Eisenhower's base
in North Africa. Many of these war-time plants were later
converted to civilian use, permanently enlarging the
bottling system and accelerating the growth of the
Company's worldwide business.

IN THE 1950S: PACKAGING INNOVATIONS

For the first time, consumers had choices of Coca-


Cola package size and type-the traditional 6.5 ounce
Contour Bottle, or larger servings including 10, 12 and 26
ounce versions. Cans were also introduced, becoming
generally available in 1960.

IN THE 1960S: INTRODUCTION OF NEW BRANDS

Udaipur Beverages Limited, Jabalpur 45


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. Today
scores of other brands are offered to meet consumer
preferences in local markets around the world.

IN THE 1970S AND 1980S: CONSOLIDATION TO


SERVE CUSTOMERS

Advancement in technology led to global economy,


retail customers of The Coca-Cola Company merged and
evolved into international mega chains. Such customers
required a new approach. In 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.

IN THE 1990S: NEW AND GROWING MARKETS

Political and economic changes opened vast markets


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

21ST CENTURY: COCA-COLA TODAY

Udaipur Beverages Limited, Jabalpur 46


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.

6.2: MANIFESTO FOR GROWTH


6.2.1: VALUES:

Coca-Cola is guided by shared values that both the


employees as individuals and the Company will live by;
the values being:

• LEADERSHIP: The courage to shape a better future

• PASSION: Committed in heart and mind

• INTEGRITY: Be real

• ACCOUNTABILITY: If it is to be, it’s up to me

• COLLABORATION: Leverage collective genius

• INNOVATION: Seek, imagine, create, delight

• QUALITY: What we do, we do well

6.2.2: MISSION

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

Udaipur Beverages Limited, Jabalpur 47


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

• To Create Value and Make a Difference... Everywhere


we engage.

6.2.3: VISION FOR SUSTAINABLE GROWTH

• PROFIT: Maximizing return to shareowners while


being mindful of our overall responsibilities.

• PEOPLE: Being a great place to work where people


are inspired to be the best they can be.

• PORTFOLIO: Bringing to the world a portfolio of


beverage brands that anticipate and satisfy peoples’
Desires and needs.

• PARTNERS: Nurturing a winning network of partners


and building mutual loyalty.

• PLANET: Being a responsible global citizen that


makes a difference.

Udaipur Beverages Limited, Jabalpur 48


FIGURE: VISION FOR SUSTAINABLE GROWTH

Chapter – 7

UDAIPUR BEVERAGES LIMITED (UBL)


7.1: ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in


India until 1977, when it left rather than reveal its
formula to the Government and reduce its equity
stake as required under the Foreign Exchange
Regulation Act (FERA) which governed the
operations of foreign companies in India. Coca-Cola
re-entered the Indian market on 26th October 1993
after a gap of 16 years, with its launch in Agra. An
agreement with the Parle Group gave the Company
instant ownership of the top soft drink brands of the
nation. With access to 53 of Parle’s plants and a well

Udaipur Beverages Limited, Jabalpur 49


set bottling network, an excellent base for rapid
introduction of the Company’s International brands
was formed. The Coca-Cola Company acquired soft
drink brands like Thumps Up, Goldspot, Limca,
Maaza, which were floated by Parle, as these
products had achieved a strong consumer base and
formed a strong brand image in Indian market during
the re-entry of Coca-Cola in 1993.Thus these
products became a part of range of products of the
Coca-Cola Company.

In the new liberalized and deregulated


environment in 1993, Coca-Cola made its re-entry
into India through its 100% owned subsidiary, UBL,
the Indian bottling arm of the Coca-Cola Company.

Udaipur Beverages Limited has started from 2004. The


unit is franchisee of coca cola India owner of regd. Trade
marks coke and soda products. Udaipur Beverages
Limited has own fully automatic plant for manufacturing
the Coca-Cola products. They produce all major products
of Coca-Cola. The capacity of bottling unit in M.P. is 5600
carats of 24 bottles of each, per eight hour schedule.
Utilizing capacity is about 75% of the total capacity.
Originally all the flavors were bottled in 300 ml. container
bottling of the process carried out under a technically
qualified production plant. Now a days it also produces
200 ml., and 300 ml. RGB, along with the PET bottles. The

Udaipur Beverages Limited, Jabalpur 50


plant has the support of 40 qualified and skilled
technicians, having capacity to operate various
equipment of the plant. It also has a modern laboratory
for sample testing and quality control of the
manufactured product, along with a huge and properly
ventilated godown attached to the plant to store the
finished products and raw material. Total of the project
at the time of installation was Rs. 1.26 cores. Mr. Vikas
Mittal Director & Mr. Deepak Kumar factory head UBL has
give their experience to the company for the success.
Udaipur Beverages Limited has largest production
capacity and highest sale in central M.P. And now it is
having a largest production capacity and highest sale in
central M.P. for the last several years.

The U.B.L. has a management board and the


managing director is the executive head of the board,
and holds the top position in the organization. Mr. Vikas
Mittal is presently the managing director of U.B.L. , but
overall policies regarding management decision and the
executive function are performed and looked after by
director Mr. V. Mittal , who is well assisted and advised
by the managing director. The director looks after all
functional departments i.e. sales, production, finance and
accounts, purchase, and administration.

Every department head report directly to the


director and are responsible of their working. The plant

Udaipur Beverages Limited, Jabalpur 51


engineer is the head of production department and looks
after bottling process inspection, storage of raw material,
maintenance etc. he is also the head of quality control
department.

Coca-Cola is made up of 10000 local employees,


1000 managers, over 70 manufacturing locations, 27
Company Owned Bottling Operations (COBO), 17
Franchisee Owned Bottling Operations (FOBO) and a
network of 29 Contract Packers that facilitate the
manufacture process of a range of products for the
company. It also has a supporting distribution network
consisting of 700,000 retail outlets and 8000 distributors.
Almost all goods and services required to cater to the
Indian market are made locally, with help of technology
and skills within the Company. The complexity of the
Indian market is reflected in the distribution fleet which
includes different modes of distribution, from 10-tonne
trucks to open-bay three wheelers that can navigate
through narrow alleyways of Indian cities and
trademarked tricycles and pushcarts.

“Think local, act local”, is the mantra that Coca-Cola


follows, with punch lines like “Life ho to aisi” for Urban
India and “Thanda Matlab Coca-Cola” for Rural India. This
resulted in a 37% growth rate in rural India visa-vie 24%
growth seen in urban India. Between 2001 and 2003, the
per capita consumption of cold drinks doubled due to the

Udaipur Beverages Limited, Jabalpur 52


launch of the new packaging of 200 ml returnable glass
bottles which were made available at a price of Rs.5 per
bottle. This new market accounted for over 80% of India’s
new Coca-Cola drinkers. At Coca-Cola, they have a long
standing belief that everyone who touches their business
should benefit, thereby inducing them to uphold these
values, enabling the Company to achieve success,
recognition and loyalty worldwide.

COBO
FOBO
CONTRACT PACKAGING

FIGURE: LOCATIONS OF COBO, FOBO & CONTRACT


PACKAGING IN INDIA

Chapter - 8

What Is Supply Chain


Supply chain

Udaipur Beverages Limited, Jabalpur 53


A supply chain is a system of organizations, people,
technology, activities, information and resources
involved in moving a product or service from supplier to
customer. Supply chain activities transform natural
resources, raw materials and components into a finished
product that is delivered to the end customer. In
sophisticated supply chain systems, used products may
re-enter the supply chain at any point where residual
value is recyclable. Supply chains link value chains.

The Council of Supply Chain Management


Professionals (CSCMP) defines Supply Chain Management
as follows: “Supply Chain Management encompasses the
planning and management of all activities involved in
sourcing and procurement, conversion, and all logistics
management activities. Importantly, it also includes
coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third-party
service providers, and customers. In essence, supply

Udaipur Beverages Limited, Jabalpur 54


chain management integrates supply and demand
management within and across companies. Supply Chain
Management is an integrating function with primary
responsibility for linking major business functions and
business processes within and across companies into a
cohesive and high-performing business model. It includes
all of the logistics management activities noted above, as
well as manufacturing operations, and it drives
coordination of processes and activities with and across
marketing, sales, product design, finance and
information technology.”

A typical supply chain begins with ecological and


biological regulation of natural resources, followed by the
human extraction of raw material, and includes several
production links (e.g., component construction,
assembly, and merging) before moving on to several
layers of storage facilities of ever-decreasing size and
ever more remote geographical locations, and finally
reaching the consumer.

Many of the exchanges encountered in the supply


chain will therefore be between different companies that
will seek to maximize their revenue within their sphere of
interest, but may have little or no knowledge or interest
in the remaining players in the supply chain. More
recently, the loosely coupled, self-organizing network of

Udaipur Beverages Limited, Jabalpur 55


businesses that cooperates to provide product and
service offerings has been called the Extended Enterprise

8.1: SUPPLY CHAIN MODELING

A diagram of a supply chain. The black arrow


represents the flow of materials and information and the
gray arrow represents the flow of information and
backhauls. The elements are (a) the initial supplier, (b) a
supplier, (c) a manufacturer, (d) a customer, (e) the final
customer.

There are a variety of supply chain models, which


address both the upstream and downstream sides.

The SCOR Supply-Chain Operations Reference model,


developed by the Supply Chain Council, measures total
supply chain performance. It is a process reference model
for supply-chain management, spanning from the
supplier's supplier to the customer's customer. It
includes delivery and order fulfillment performance,
production flexibility, warranty and returns processing
costs, inventory and asset turns, and other factors in
evaluating the overall effective performance of a supply
chain.

Udaipur Beverages Limited, Jabalpur 56


The Global Supply Chain Forum (GSCF) introduced
another Supply Chain Model. This framework is built on
eight key business processes that are both cross-
functional and cross-firm in nature. Each process is
managed by a cross-functional team, including
representatives from logistics, production, purchasing,
finance, marketing and research and development. While
each process will interface with key customers and
suppliers, the customer relationship management and
supplier relationship management processes form the
critical linkages in the supply chain.

The American Productivity & Quality Center (APQC)


Process Classification Framework (PCF) SM is a high-
level, industry-neutral enterprise process model that
allows organizations to see their business processes from
a cross-industry viewpoint. The PCF was developed by
APQC and its member companies as an open standard to
facilitate improvement through process management and
benchmarking, regardless of industry, size, or geography.
The PCF organizes operating and management processes
into 12 enterprise level categories, including process
groups and over 1,000 processes and associated
activities.

Udaipur Beverages Limited, Jabalpur 57


8.2: SUPPLY CHAIN MANAGEMENT

A German paper factory receives its daily supply of


75 tons of recyclable paper as its raw material In the
1980s, the term Supply Chain Management (SCM) was
developed to express the need to integrate the key
business processes, from end user through original
suppliers. Original suppliers being those that provide
products, services and information that add value for
customers and other stakeholders. The basic idea behind
the SCM is that companies and corporations involve
themselves in a supply chain by exchanging information
regarding market fluctuations and production
capabilities.

If all relevant information is accessible to any


relevant company, every company in the supply chain has
the possibility to and can seek to help optimizing the

Udaipur Beverages Limited, Jabalpur 58


entire supply chain rather than sub optimize based on a
local interest. This will lead to better planned overall
production and distribution which can cut costs and give
a more attractive final product leading to better sales
and better overall results for the companies involved.

Incorporating SCM successfully leads to a new kind


of competition on the global market where competition is
no longer of the company versus company form but
rather takes on a supply chain versus supply chain form.

Many electronics manufacturers of Guangdong rely


on supply of parts from numerous component shops in
Guangzhou The primary objective of supply chain
management is to fulfill customer demands through the
most efficient use of resources, including distribution
capacity, inventory and labor. In theory, a supply chain
seeks to match demand with supply and do so with the
minimal inventory. Various aspects of optimizing the

Udaipur Beverages Limited, Jabalpur 59


supply chain include liaising with suppliers to eliminate
bottlenecks; sourcing strategically to strike a balance
between lowest material cost and transportation,
implementing JIT (Just In Time) techniques to optimize
manufacturing flow; maintaining the right mix and
location of factories and warehouses to serve customer
markets, and using location/allocation, vehicle routing
analysis, dynamic programming and, of course,
traditional logistics optimization to maximize the
efficiency of the distribution side.

There is often confusion over the terms supply chain


and logistics. It is now generally accepted that the term
Logistics applies to activities within one
company/organization involving distribution of product
whereas the term supply chain also encompasses
manufacturing and procurement and therefore has a
much broader focus as it involves multiple enterprises,
including suppliers, manufacturers and retailers, working
together to meet a customer need for a product or
service.

Starting in the 1990s several companies chose to


outsource the logistics aspect of supply chain
management by partnering with a 3PL, Third-party
logistics provider. Companies also outsource production
to contract manufacturers.

Udaipur Beverages Limited, Jabalpur 60


There are actually four common Supply Chain
Models. Besides the two mentioned above, there are the
American Productivity & Quality Center's (APQC) Process
Classification Framework and the Supply Chain Best
Practices Framework.

An unusual food supply chain operated by illiterate


Dabbawalas in Mumbai is noted for being extremely
reliable without using any computers or modern
technology. It has been verified to be a six sigma supply
chain, meaning they make less than 1 mistake in 3.4
million deliveries.

Udaipur Beverages Limited, Jabalpur 61


Chapter – 9

9.1: ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)


FIGURE: ORGANIZATION STRUCTURE IN COCA-COLA,
INIDA

Udaipur Beverages Limited, Jabalpur 62


Region Vice
President

AGM/ AOD
Unit 1

AGM/ AOD
Unit 2

AGM/ AOD
Unit 3

AGM/ AOD
Unit4

Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal

Region BSG

Region Director/ Manager


Market Execution

Region Capability Region Channel


Management

FIGURE: ORGANIZATION STRUCTURE IN COCA-COLA,


INDIA

Udaipur Beverages Limited, Jabalpur 63


9.2: ORGANIZATION STRUCTURE OF THE SALES
DEPARTMENT IN UBL:

AGM/ AOD

Human General
Plant Route to Resource Finance Sales
Manager Market Manager Manager Manager

Area
Area Sales Channel Capability
Manager Manager Manager

Sales Marketing Sales


Executive Trainers

Market Key
Developer Accounts

Distributors
And
Salesmen

FIGURE: ORGANIZATION STRUCTURE OF THE SALES


DEPARTMENT

Udaipur Beverages Limited, Jabalpur 64


9.3: MANUFACTURING UNIT OF UBL
The manufacturing unit of UBL, situated at Jabalpur,
is the largest plant and one of the bottling operations
owned by the company. The Plant has one PET line which
has the capacity of yielding 209 bottles, per minute, two
RGB (Returnable glass bottles) lines which yields 600
bottles per minute each and one Juice line which yield
155 bottles per minute. It caters to the whole of center
Madhya Pradesh through a network of more than 120
distributors. There are three depots in Jabalpur; North
Depot, East Depot and Mega Depot. We at Coca-Cola are
committed to manufacture our products with utmost care
and with quality at top priority which makes it the world
leader in the soft drink industry. Following is the
overview of the stringent Processes adopted in
manufacturing before our quality product reaches finally
to our proud consumers.

Manufacturing
Plant, Jabalpur

Sales and
Distribution
Operations

Distributors Outlets

Outlets

Udaipur Beverages Limited, Jabalpur 65


FIGURE: CHAIN FOLLOWED FROM MANUFACTURE TO
DISTRIBUTION

9.4: MANUFACTURING PROCESS


9.4.1: WATER TREATMENT

We at UBL Jabalpur follow a batch treatment which


includes coagulation & flocculation. The method ensures
disinfection and settling of all macro impurities and
thereafter it pass to sand, carbon filters to remove off
odour ,off color, off taste, and thus it is strictly bought in
line with the WHO requirements. We are also using state
of art –micron filtration process where the water is
filtered up to the extent of 1 micron before it is fed to the
process.

This extensive treatment of water under strict


monitoring and sampling for quality leads to pure
hygienic water with the highest quality meeting the Coca-
Cola standards.

9.4.2: SYRUP PREPARATION

Coca-Cola uses highest quality of sugar which is


controlled and ensured by its stringent prelaid standards,
which serves as the strict criteria before acceptance of a
lot. To ensure high quality of syrup, it is subjected to hot
treatment wherein it is given a contact time with hyflo
and carbon at elevated temperature. It is then passed
through a filter press which removes the carbon particles

Udaipur Beverages Limited, Jabalpur 66


and other impurities before it declared fit for concentrate
mixing. All this process takes place under the strict vigil
by the quality department which maintains the
appropriate records of the numerous tests carried out in
the entire process which makes it a foolproof process.

In the ready syrup tank the pre-decided quantity of


concentrate is mixed to the simple syrup in very strict
hygienic condition to yield final syrup. The entire syrup
manufacturing area is maintained under a constant
positive pressure which rules out the possibility of any
external particles entering into the process room.

9.4.3: CONTAINER WASHING

Container has been identified as one of the major


critical control point in the entire manufacturing process
& that’s the reason that company has laid some of the
very stringent and foolproof systems which ensures Coca-
Cola product to be of the highest quality and reflects our
commitment towards delivering the best in class product
to the consumers.

The bottles received from the market are loaded on


the conveyor by the uncasing machine and the arrays of
the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck
bottles, excessively dirty bottles, bottles carrying foreign
matter, foreign bottles. And thus the good bottles pass
into the bottle washing machine which uses intensive

Udaipur Beverages Limited, Jabalpur 67


mechanical and chemical processes to clean and disinfect
the bottles thoroughly and ensures the bottles to be
ready for filling. However as an additional safety, there is
again a post wash inspection station comprising of 4 sub-
stations, which ensures removal of the chip necked
bottles and suspected bottles from the lot. Thus the
bottles are subjected to series of stringent inspections
before it is fed to the filler for filling.

9.4.4: MIXING, PROPORTIONING

Proportioning is basically a process where ready


syrup is diluted in a predetermined fixed proportion with
water and carbonated concentrate in to beverage
conforming strictly to company’s norms and
specifications. It is carried out by an Italian Machine-
MOJONNIER.

9.4.5: FILLING & CROWNING

The chilled carbonated beverage fed by the


MOJONNIER is filled into the bottles through a rotator
machine named FILLER. The bottles are immediately
crowned by crowner (adjacent to the filler) and thereafter
bottles passes through the date coding machine which
enable the consumer to be 100 percent sure of
consuming a perfectly safe and fresh product.

9.4.6: FINAL INSPECTION

Udaipur Beverages Limited, Jabalpur 68


After date coding, there is once again a final
inspection station where light inspectors all low or high
filled bottles and permit only the saleable product to
pass through for casing to the caser machine.

9.4.7: MANAGING THE WASTE WATER

Production lines maintain the waste water from the


bottle washers, Syrup and Filler rooms.

Entire waste water generated is treated at Waste


Water Treatment Plant and discharged through a 800
meters long pipeline specially laid to discharge the
treated waste water away from inhabited areas. Part of
this water is being used for gardening purpose within the
plant premises.

9.4.8: MARKET & CUSTOMERS

Once the finished product is ready, it is transported


to the distribution centers and then to retail outlets by
way of route trucks. The consumer buys the soft drink
from the retailer outlets. The empty bottles are
simultaneously collected by the distribution channels at
the time of dispensing the finished products.

9.4.9: SUPPLIERS AND OTHER BUSINESS PARTNER

Udaipur Beverages Limited, Jabalpur 69


Other than water and concentrate, bottling operation
require sugar, CO2, bottles, crates and other
miscellaneous materials. The Coca-Cola India division has
a Supplier authorization program where suppliers are
authorized based on a defined criterion. Environmental
considerations are amongst the critical of these
criterions.

Udaipur Beverages Limited, Jabalpur 70


9.4.10: EMPLOYEES, PLANTS & MACHINERY

The no of total unit employees is approximately 113


& in summer season, which is a peak season for sale of
soft drinks, the plant works for three shift operation
round the clock.

The overall education level of the employees is good


and they obviously have a good expertise in water
treatment and purification processes. Extensive in-house
training programs are conducted to maintain the
competency of the manpower in respective areas. The
plant and machinery consists of state of art bottling
machinery and test equipment to get consistent quality
product at the optimum usage of raw materials. The plant
also has an extensive quality test laboratory with
equipment like spectrophotometer, density meter, micro
lab etc. to conduct on the spot tests at various stages of
production.

A typical bottling line will consist of uncased- pre


wash inspection station –conveyers-bottle washer-post
wash bottle inspection station—filler-final light inspection
station-conveyor-and caser.

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9.5: MANUFACTURING PROCESS AT UBL

FIGURE: MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves


the following steps:

• Water is received from the Under Ground boring and


it passes through the water treatment plant, further
passing through the sand filter and the activated
carbon filter, so as to attain pure cleansed water.

• In the syrup room, the concentrate received from


another bottling plant situated at Indore, is blended
with the sugar syrup

Udaipur Beverages Limited, Jabalpur 72


• Once both the water and the final syrup are ready,
they are both mixed together and sent to the
carbonator section where Carbon Dioxide is added to
the mixture to form the final product.

• On the other hand, simultaneously, the returnable


glass bottles are depolarized, inspected and washed
for the purpose of filling in the final product in it.
This step does not take place in the PET bottle line
as the bottles once used are disposed.

• The product is finally filled in the bottles, crowned


(in case of RGB)/ capped (in case of PET bottles),
labeled and cased in order to be sent into the
warehouse for distribution.

Udaipur Beverages Limited, Jabalpur 73


9.6: BUSINESS PLAN MODEL AT UBL

Coca-Cola India
division, Manufactures
Jabalpur Concentrate, Beverage
base and Syrup

Regional Bottlers Manufactures finished


COBO/FOBO Bottles/Cans/Fountain
Syrup

Customers

Consumers

FIGURE: BUSINESS PLAN MODEL

9.7: DISTRIBUTION NETWORK


U.B.L. has a wide and well managed network of
salesmen appointed for taking up the responsibility of
distribution of products to diverse parts of the cities. The
distribution channels are constructed in such a way that
the demand of customers is fulfilled at the right place
and the right time when it is needed by them.

A typical distribution chain at U.B.L. would be:

Udaipur Beverages Limited, Jabalpur 74


Production --- Plant Warehouse --- Depot Warehouse
--- Distribution Warehouse --- Retail Stock --- Retail Shelf
--- Consumer

The customers of the Company are divided into


different categories and different routes, and every
salesman is assigned to one particular route, which is to
be followed by him on a daily basis. A detailed and well
organized distribution system contributes to the
efficiency of the salesmen. It also leads to low costs,
higher sales and higher efficiency thereby leading to
higher profits to the firm.

9.7.1: DISTRIBUTION ROUTES

The various routes formulated by UBL 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.

Udaipur Beverages Limited, Jabalpur 75


• Future Consumption: This route consists of outlets
of Coca-Cola products, wherein a considerable
amount of stock is kept in order to use for future
consumption. The stock does not exhaust within a
day or two, instead as and when required stocks
are stacked up by them so as to avoid shortage or
non-availability of the product.
Examples: Departmental stores, Super markets etc.

• Immediate Consumption: The outlets in this route


are those which require stocks on a daily basis. The
stocks of products in these outlets are not stored
for future use instead, are exhausted on the same
day and might run a little into the next day i.e. the
products are consumed at a fast pace.

Examples: Small sized bars and restaurants,


educational institutions etc.

• General: Under this route, all the outlets that come


in a particular area or an area along with its
neighboring areas are catered to. The consumption
period is not taken into consideration in this
particular route.

9.7.2: DISTRIBUTION SYSTEM

• Direct distribution: In direct distribution, the bottling


unit or the bottler partner has direct control over the
activities of sales, delivery, and merchandising and
local account management at the store level.
Udaipur Beverages Limited, Jabalpur 76
• Indirect distribution: In indirect distribution, an
organization which is not part of the Coca-Cola
system has control on one or more of the distribution
elements (Sales, delivery, merchandising and local
account management)

• Merchandising: Merchandising means communication


with the consumer at the point of purchase to
convey product benefit, value and Quality. Sales
people and delivery personnel both have this
responsibility. In certain locations special teams who
go into business locations to specifically
merchandise our products.

9.7.3: DEPARTMENTS INVOLVED IN THE


DISTRIBUTION PROCESS

The Distribution process mainly consists of three


departments:

• Distribution Department: It appoints distributors and


establishes a distribution network, processes
approved sale orders and prepares invoices,
arranges logistics and ship products, co-ordinates
with distributors for collections and monitors
distribution stocks and their set-up.

• Finance Department: It checks credit limits and


approves sales orders in compliance with the credit
policy followed by the firm, records collections from

Udaipur Beverages Limited, Jabalpur 77


distributors, periodically reconciles outstanding
balances from distributors, obtains balance
confirmation from distributors and follows up
outstanding balances.

• Shipping or Warehousing Department: It dispatches


goods as per approved by order, ensures that stocks
are dispatched on a FIFO basis, ensures physical
control over load out area and updates warehouse
stock records in a timely manner.

9.8: SWOT ANALYSIS OF U.B.L.


9.8.1: STRENGTHS

• DISTRIBUTION NETWORK: The Company has a strong


and reliable distribution network. The network is
formed on the basis of the time of consumption and
the amount of sales yielded by a particular customer
in one transaction. It has a distribution network
consisting of a number of efficient salesmen,
700,000 retail outlets and 8000 distributors. The
distribution fleet includes different modes of
distribution, from 10-tonne trucks to open-bay three
wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles
and pushcarts.

• STRONG BRANDS: The products produced and


marketed by the Company have a strong brand

Udaipur Beverages Limited, Jabalpur 78


image. People all around the world recognize the
brands marketed by the Company. Strong brand
names like Sprite, Fanta, Limca, Thums Up and
Maaza add up to the brand name of the Coca-Cola
Company as a whole. The red and white Coca-Cola is
one of the very few things that are recognized by
people all over the world. Coca-Cola has been named
the world's top brand for a fourth consecutive year in
a survey by consultancy Interbrand. It was estimated
that the Coca-Cola brand was worth $70.45billion.

(http://news.bbc.co.uk/1/hi/business/4706275.stm)

• LOW COST OF OPERATIONS: The production,


marketing and distribution systems are very efficient
due to forward planning and maintenance of
consistency of operations which minimizes wastage
of both time and resources leads to lowering of
costs.

9.8.2: WEAKNESSES

• LOW EXPORT LEVELS: The brands produced by the


company are brands produced world wide thereby
making the export levels very low. In India, there
exists a major controversy concerning pesticides and
other harmful chemicals in bottled products
including Coca-Cola. In 2003, the Centre for Science
and Environment (CSE), a non-governmental
organization in New Delhi, said aerated waters

Udaipur Beverages Limited, Jabalpur 79


produced by soft drinks manufacturers in India,
including multinational giants PepsiCo and Coca-
Cola, contained toxins including lindane, DDT,
malathion and chlorpyrifos- pesticides that can
contribute to cancer and a breakdown of the immune
system. Therefore, people abroad, are apprehensive
about Coca-Cola products from India.

• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY


TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The
Company’s operations are carried out on a small
scale and due to Government restrictions and ‘red-
tapism’, the Company finds it very difficult to invest
in technological advancements and achieve
economies of scale.

9.8.3: OPPORTUNITIES

• LARGE DOMESTIC MARKETS: The domestic market for


the products of the Company is very high as
compared to any other soft drink manufacturer.
Coca-Cola India claims a 58 per cent share of the soft
drinks market; this includes a 42 per cent share of
the cola market. Other products account for 16 per
cent market share, chiefly led by Limca. The
company appointed 50,000 new outlets in the first
two months of this year, as part of its plans to cover
one lakh outlets for the coming summer season and

Udaipur Beverages Limited, Jabalpur 80


this also covered 3,500 new villages. In Bangalore,
Coca-Cola amounts for 74% of the beverage market.

• EXPORT POTENTIAL: The Company can come up with


new products which are not manufactured abroad,
like Maaza etc and export them to foreign nations. It
can come up with strategies to eliminate
apprehension from the minds of the people towards
the Coke products produced in India so that there
will be a considerable amount of exports and it is yet
another opportunity to broaden future prospects and
cater to the global markets rather than just domestic
market.

• HIGHER INCOME AMONG PEOPLE: Development of


India as a whole has lead to an increase in the per
capita income thereby causing an increase in
disposable income. Unlike olden times, people now
have the power of buying goods of their choice
without having to worry much about the flow of their
income. The beverage industry can take advantage
of such a situation and enhance their sales.

9.8.4: 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

Udaipur Beverages Limited, Jabalpur 81


increased over the years. If consumers shift onto
imported beverages rather than have beverages
manufactured within the country, it could pose a
threat to the Indian beverage industry as a whole in
turn affecting the sales of the Company.

• TAX AND REGULATORY SECTOR: The tax system in


India is accompanied by a variety of regulations at
each stage on the consequence from production to
consumption. When a license is issued, the
production capacity is mentioned on the license and
every time the production capacity needs to be
increased, the license poses a problem. Renewing or
updating a license every now and then is difficult.
Therefore, this can limit the growth of the Company
and pose problems.

• SLOWDOWN IN RURAL DEMAND: The rural market


may be alluring but it is not without its problems:
Low per capita disposable incomes that is half the
urban disposable income; large number of daily
wage earners, acute dependence on the vagaries of
the monsoon; seasonal consumption linked to
harvests and festivals and special occasions; poor
roads; power problems; and inaccessibility to
conventional advertising media. All these problems

Udaipur Beverages Limited, Jabalpur 82


might lead to a slowdown in the demand for the
company’s products.

• GOVT. POLICIES: The policies of the government also


play a major role for the company. The company can
not perform well or in its own way by violating the
rules of the government. Thus if the government
formulates some policies which creates hindrances in
the working of the company it will prove to be one of
the major threats.

9.9 COMPETITOR ANALYSIS

Indian soft drinks market is predominantly controlled


by two major multinationals namely Coca- Cola and Pepsi,
which have carefully stifled out the local competition
here in India. Penetrating tough Indian psychology and
making their products feel accepted was the toughest
challenge in front of them. A brief overview of the soft
drinks giant biggest competitor will help in gaining a
better insight of the soft drinks market in totality.

9.9.1 CURRENT MARKET POSITION

There has been much controversy and debate on the


market share standings between the two companies in
the Indian subcontinent and a substantial and a
consolidated figure has been unavailable for reference.
This is mainly because both companies had approached
different market research companies for making a study

Udaipur Beverages Limited, Jabalpur 83


about the market share standings. Pepsi Co had
approached IMRB while Coca- Cola had entrusted this
responsibility on ORG.

According to the survey done by IMRB Pepsi’s


market share was found to have increased from 47% to
49% while according to the study conducted by ORG
Coca- Cola’s market share was claimed to be 59%.

9.9.2 FACTORS AFFECTING BUSINESS

 Seasonality: Seasonality is one of the most


important factors that affect the soft drink
business. Seasonality is primarily influenced
either by the weather, or by holidays and
religious festivals. Within the Group, soft drink
business has different seasonal cycles
throughout the year.

 Service frequency: This is another factor that


affects the business. Service frequency is the
time gap between visiting a particular outlet
again. Service frequency directly affects the
rotation time which in turn affects the value of
business.

 Demand pattern for the market: Every product


has a different demand pattern and affects the
business.

Udaipur Beverages Limited, Jabalpur 84


 Price of the product: Price of the soft drinks also
affects the business. Due to perfect competition
in soft drink market, price of a product plays a
major role in business.

 Disposable Income: Disposable Income of the


consumers also affects the business of the soft
drink players. A high disposable income of the
consumers ensures a high demand for the
products in the market.

 Demographic Profile: Demographic profile of


consumer also affects the business and needs to
be considered.

 Competitor’s Policy: The policies of the


competitors also affect the working of the
business of other companies.

 Government Policies: The government policies


related to taxation or political interference also
affect the business of the players in the soft
drink

9.10: COMPETITORS TO U.B.L.

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:

Udaipur Beverages Limited, Jabalpur 85


• PepsiCo: the PepsiCo challenge, to keep up with arch
rival, the Coca-Cola Company never ends for the
World’s #2, carbonated soft-drink maker. The
company's soft drinks include Pepsi, Mountain Dew,
and Slice. Cola is not the company's only beverage;
PepsiCo sells Tropicana orange juice brands,
Gatorade sports drink, and Aquafina water. PepsiCo
also sells Dole juices and Lipton ready-to-drink tea.
PepsiCo and Coca-Cola hold together, a market share
of 95% out of which 60.8% is held by Coca-Cola and
the rest belongs to Pepsi.

• Nestlé: Nestle does not give that tough a


competition to Coca-Cola as it mainly deals with milk
products, Baby foods and Chocolates. But the iced
tea that is Nestea which has been introduced into
the market by Nestle provides a considerable
amount of competition to the products of the
Company. Iced tea is one of the closest substitutes
to the Colas as it is a thirst quencher and it is
healthier when compared to fizz drinks. The flavored
milk products also have become substitutes to the
products of the company due to growing health
awareness among people.

• Dabur: Dabur in India, is one of the most trusted


brands as it has been operating ever since times and
people have laid all their trust in the Company and

Udaipur Beverages Limited, Jabalpur 86


the products of the Company. Apart from food
products, Dabur has introduced into the market Real
Juice which is packaged fresh fruit juice. These
products give a strong competition to Maaza and the
latest product Minute Maid Pulpy Orange.

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Chapter - 10

PRODUCTS
The Coca-Cola Company offers a wide range of
products to the customers including beverages, fruit
juices and bottled mineral water. The Company is always
looking to innovate and come up with, either complete
new products or new ways to bottle or pack the existing
drinks. The Coca-Cola Company has a wide range of
products out of which the following products are
marketed by U.B.L.:

• In the Cola Section:

• In the Lemon section:

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Udaipur Beverages Limited, Jabalpur 89
• In the Orange section:

• In the Juice section:

• In the Soda Water and Bottled Mineral Water


section:

• In the Tonic Water section:

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10.1: PRODUCTS AND PACK SIZES:

Coca-cola is the world's favorite drink. It is the


world's most valuable brand and the most recognizable
word across the world. Coca-Cola has a truly remarkable
heritage.

From a humble beginning in 1886, it is now the


flagship brand of the largest manufacturer, marketer and
distributor of non-alcoholic beverages in the world.

In India, Coca-Cola was the leading soft-drink till


1977 when govt. policies necessitated its departure.
Coca-Cola made its return to the country in 1993 and
made significant investments to ensure that the
beverage is available to more and more people, even in
the remote and inaccessible parts of the nation. Over the
past ten years it has captured the imagination of the
nation, building strong associations with cricket, the

Udaipur Beverages Limited, Jabalpur 91


thriving cinema industry, music etc. 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
nineties. Coca-Cola's advertising campaigns Jo Chaho Ho
Jaye and Life ho to Aisi were very popular and had
entered the youth's vocabulary. In 2002, Coca-Cola
launched the campaign "Thanda Matlab Coca-Cola" which
sky-rocketed the brand to make it India's favorite soft-
drink brand. In 2003, Coke was available for just Rs. 5
across the country and this pricing initiative together
with improved distribution ensured that all the brands in
the portfolio grew leaps and bounds.

Coca-Cola had signed on various celebrities including


movie stars such as Karishma Kapoor, cricketers such as
Srinath, Sourav Ganguly, southern celebrities like Vijay in
the past and today, its brand ambassadors are Aamir
Khan and Hrithik Roshan.

Udaipur Beverages Limited, Jabalpur 92


Thums Up is a leading carbonated 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 the boys.

Udaipur Beverages Limited, Jabalpur 93


Fanta Internationally, Fanta - The 'orange' drink of
the Coca-Cola Company, is seen as one of the favorite
drinks since 1940's. Fanta entered the Indian market in
the year 1993.

Over the years Fanta has occupied a strong market


place and is identified as "The Fun Catalyst".

Fanta is perceived as a fun youth brand and stands


for its vibrant color, 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 associated with happy, cheerful and
special times with friends.

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“Lime n' lemoni Limca” , the drink that can cast a
tangy refreshing spell on anyone, anywhere. Born in
1971, Limca has been the original thirst choice, of
millions of consumers for over 3 decades. The brand has
been displaying healthy volume growths year on year and
Limca continues to be the leading flavor soft drink in the
country.

The sharp fizz and lemoni bite combined with the


single minded positioning of the brand as the ultimate
refresher has continuously strengthened the brand
franchise. Limca energizes, refreshes and transforms.
Dive into the zingy refreshment of Limca and walk away a
new person.

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Worldwide Sprite is ranked as the No. 4 soft drink &
is sold in more than 190 countries. In India, Sprite was
launched in year 1999 & today it has grown to be one of
the fastest growing soft drinks, leading the Clear lime
category. Today Sprite is perceived as a youth icon. With
a strong appeal to the youth, Sprite has stood for a
straight forward and honest attitude. It’s clear crisp
refresh hingtaste encourages the today's youth to trust
their instincts, influence them to be true to who they are
and to obey their thirst.

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Maaza was launched in 1976. It is a drink which
offered the same real taste of fruit juices and was
available throughout the year. In 1993, Maaza was
acquired by Coca-Cola India and it currently dominates
the fruit drink market.Over the years, brand Maaza has
become synonymous with Mango. This has been the
result of such successful campaigns like "Taaza Mango,
Maaza Mango" and "Botal mein Aam, Maaza hain Naam".
Consumers regard Maaza as wholesome, natural, fun
drink which delivers the real experience of fruit.

The current advertising of Maaza positions it as an


enabler of fun friendship moments between moms and
kids as moms trust the brand and the kids love its taste.
The campaign builds on the existing equity of the brand
and delivers a relevant emotional benefit to the moms
rightly captured in the tagline "Yaari Dosti Taaza Maaza"

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Kinley Water, a thirst quencher that refreshes, a life
giving force that washes all the toxins away. A ritual
purifier that cleanses, purifies, transforms. Water, the
most basic need of life, the very sustenance of life, a
celebration of life itself.

The importance of water can never be understated.


Particularly in a nation such as India where water
governs the lives of the millions, be it as part of everyday
rituals or as the monsoon which gives life to the sub-
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.

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Kinley water comes with the assurance of safety
from the Coca-Cola Company. That is why we introduced
Kinley with reverse-osmosis along with the latest
technology to ensure the purity of our product. That's
why we go through rigorous testing procedures at each
and every location where Kinley is produced. Because the
company believes that right to pure, safe drinking water
is fundamental. It’s a universal need which cannot be left
to chance.

10.2: PACKAGING DETAILS

• Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml


can, 200 ml and 300 ml returnable glass bottles;
500+100 ml free, 1.5 litre and 2 litre PET bottles

• Diet Coke: 330 ml can and 500 ml PET bottle

• Maaza: 200 ml and 250 ml Returnable Glass Bottle;


500+100 ml free and 1litre+200 ml free PET bottles
and the newly introduced 200 ml Tetra Pack

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


bottles

• Schweppes Soda Water: 300 ml returnable glass


bottles, 500+100 ml free PET bottles

• Schweppes Mineral Water: 750 ml PET bottles

• Schweppes Tonic Water: 330 ml can

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

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Chapter - 11

ADVERTISING
Advertising has played an important role in the
success of products since first newspaper add in 1886,
which read “Coca-Cola Delicious! Refreshing!
Exhilarating! Invigorating!” The company uses
adver4tising to trigger desire as often and in as many
ways as possible.

Through out the years, slogans or coca-cola have


been memorable .Here are some highlights:

 2000-Coca-Cola Enjoy

 1993-Always Coca-Cola

 1990- Can’t Beat the Real Thing

 1989-Can’t Beat the Feeling

 1986-Red,White and You

 1982-Coke Is It

 1976-Coke Adds Life

 1971-I’d Like to Buy the World a Coke

 1969-It’s the Real Thing

 1963-Things Go Better With Coke

 1959-Be really refreshed

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 1944-Global High Sign

 1942-It’s the Real Thing

 1936-It’s the Refreshing thing to do

 1929-The Pause That Refreshes.

11.1 BRAND AMBASSADORS

Coca-Cola had signed on various celebrities including


movie stars and cricket players such as Shahrukh Khan,
Hritik Roshan, Amir Khan, Akshay Kumar, Aishwerya Rai,
Vivek Oberai, Rani Mukherjee, Bipasha Basu, Riya Sen,
Saurav Ganguly, Virendar Sehwag, southern celebrities
like Vijay in the past and today its brand ambassadors.

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Chapter 12

PROJECT PERCEPTION OF CONSUMERS


TOWARDS
MINUTE MAID PULPY ORANGE

12.1: OBJECTIVE OF THE STUDY

The main objective of this study lies in studying and


understanding the consumers’ perception and opinion
about the latest product, Minute Maid Pulpy Orange,

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introduced into India, by the Coca-Cola Company.
Perception can be defined as intuitive recognition of a
truth, aesthetic quality and the way a person sees or
understands. In the case of Minute Maid Pulpy Orange,
one could define perception as the levels of awareness
and acceptance among people towards the product.

12.2: ABOUT THE PRODUCT

Minute Maid is a 62-year-old brand and entered the


Coca-Cola fold in 1960. The history of the ‘Minute Maid’
brand goes as far back as 1945 when the Florida Foods
Corporation developed an orange juice powder. The
company developed a process that eliminated 80% of the
water content in orange juice to form a frozen
concentrates which, when reconstituted created orange
juice. The product was thereby branded ‘Minute Maid’, a
name signifying the convenience and the ease of
preparation i.e. the drink could be prepared in just about
a minute. Minute Maid thus moved from a powdered
concentrate to the first ever orange juice from
concentrate. Over the years, through innovation and
unmatched consumer experience provided in over 60
countries, Minute Maid brand has clearly become one of
the world's largest juice and juice drink brands. Minute
Maid Pulpy Orange in India was launched in Hyderabad
on the 19th Of February. The product is aimed to further

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extend the leadership of Coca-Cola in India in the juice
drink category.

There are over a 100 products in the Minute Maid


banner that include fruit drinks in various flavors and
fortified varieties. Coca-Cola is exploring its options to
introduce some of these in India in future after tweaking
them to suit local tastes and conditions. The product is
made available in two packs; one being a 400 ML bottle
priced at Rs. 25 and the other being a 1 LT bottle priced
at Rs. 60. The exclusivity of the product lies in the
presence of real orange pulp in the drink contributing to
its unique and refreshing taste. Currently, the pulp is
imported from Florida and the juice from Brazil, the
largest producers of Orange in the world. The product is
bottled at the bottling unit of Coca-Cola in Chittoor,
Andhra Pradesh. In the long run, the company would be
sourcing these components locally by teaming up with
farmers.

The product is made available in groceries, large


format stores, eating and drinking outlets, convenience
stores etc. Mr. Deepak Kumar, Factory Head U.B.L., said
that Minute Maid Pulpy Orange would be retailed across
25,000 outlets in the three States of India

12.3: METHODOLOGY

As mentioned earlier in the report, in three States of


India, were a part of the phased launch of the product in

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the market. A consumer sampling involving 5.5 lakh
people was conducted in a span of 30 days across major
cities in order to give the product the required marketing
push and to recognize the prospective consumers and
their opinion in order to develop and market the product
in a better way in the near future. The methodology used
in studying and understanding the perceived views of
consumers towards the product was ‘SAMPLING’.

Sampling, by definition, is that part of statistical


practice concerned with the selection of individual
observations intended to yield some knowledge about a
population of concern, especially for the purposes of
statistical inference. Each observation measures one or
more properties of an observable entity enumerated to
distinguish objects or individuals. In the case of Minute
Maid Pulpy Orange, the properties taken into concern
are, the opinion of people regarding the product, taking
into consideration their age and gender.

The process of Sampling in the city of Bangalore was


conducted in the chain of Food World outlets all over the
city. A modern trade outlet like Food World was chosen
because of facts like; the number of Food World outlets is
high and the number of walk ins at each outlet was
comparatively high as compared to any other stores or
any other modern trade outlets. In recent years,
consumers have preferred shopping for grocery and

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other necessaries at super markets due to reasons like,
location of the store, shopping at leisure and
convenience, spacious stores, availability of a wide array
of products, prices offered and the quality of the
products. Food World has been existent in the city for a
very long time now and it is an outlet which satisfies all
the above conditions and keeping that in mind, it was
chosen.

12.4: PROCEDURE

The students appointed as summer trainees by the


organization were assigned to carry out the process of
sampling. Each trainee was allotted different outlets on
different days and a specific number of cases containing
24 bottles of 400 ml each were given to them for the
purpose. A standardized procedure was to be followed by
the trainees to carry out the work, in order to achieve
uniformity in the process, i.e. as follows:

• Talk to the store Manager in the respective store and


attain chiller space in order to chill the bottles as it
was necessitated that the drinks be served chill to
the consumers and chill the bottles for about two
hours.

• When the consumer entered or exited the store, the


trainee had to stop the consumer and tell the

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consumers few facts about the product i.e. that it
was the latest product introduced by Coca-Cola, that
it was an orange drink with real orange pulp in it and
that it was to be had chilled and shaken well before
use.

• Then the bottles were to be shaken well, opened and


given to the consumer to taste and once they sipped
the drink, the consumer would be requested to give
an oral opinion about the product.

• After this, in order to make a report, the


approximate age of the consumer, gender and their
opinion was to be made note of.

12.5: FINDINGS

12.5.1: GRAPH 1

This graph depicts the total number of consumers


divided on the basis of the age group they belong to. The
age of consumers included in the sampling activity
ranged from 5 years to 75 years. Accordingly the age
groups 5 to 15, 15 to 25, 25 to 35, 35 to 45, 45 to 55, 55
to 65 and 65 to 75 have been formulated. There is not set
limit for the age of the consumers mainly because
‘Minute Maid Pulpy Orange’ is a fruit drink and it can be
consumed by people across different age groups with no
restrictions being laid and consumers of all ages enter
food world on a given day, either individually and in the

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case of children, with their parents. The consumers who
were sampled with were between 5 years and 75 years of
age. The approximate age of the consumers was to be
guessed and noted down. Around 50% of consumers fall
in the 25 years to 35 years and 35 years to 45 years age
groups and the other 50% is distributed among the other
age groups.

Total No. of Consumers based on Age Group

7% 6%

8%
10%

13%

29%

27%

5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75

GRAPH 1: TOTAL NUMBER OF CONSUMERS BASED ON AGE


GROUP

12.5.2: GRAPH 2

This graph makes a distinction between the number


of males and number of females with whom sampling was
conducted. The percentage is almost the same in both
categories, but the number of females i.e. 365 is a little
more than the number of males i.e. 331, due to the fact

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that, most of the household shopping is done by women
rather than by men.

No. of Consumers based on Gender

52% 48%

Male Female

GRAPH 2: TOTAL NUMBER OF CONSUMERS BASED ON


GENDER

12.5.3: GRAPH 3

The following graph denotes the feedback of


consumers irrespective of the age group they belong to
or their gender. This is an overall perception of the
consumers towards ‘Minute Maid Pulpy Orange’.

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Opinion of people on Minute Maid Pulpy Orange

15%

11%

66%
8%

Liked Average Mix Reaction Disliked

GRAPH 3: GENERAL REACTION OF CONSUMERS ABOUT


MMPO

From the above graph, it can be seen that, more


than half the people who tasted the product liked the
product, i.e. they gave positive feedback about the
product and 15% of the consumers did not like the
product. Out of the remaining 19% of consumers, 11%
people came up with mixed reactions i.e. they had
reasons both to like and dislike the product and a small
chunk of 8% of the total consumers sampled with, said
they did not like the drink too much, neither did they love
the drink.

12.5.4: GRAPH 4

The following graph denotes the perception of


consumers on the basis of the age group they belong to.

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This kind of a classification becomes necessary, because
consumers of different age groups have different tastes
and moreover, the ages of consumers in the sample
range from 5 years all the way to 75 years.

Feedback of Consumers about MMPO


87
90

80 76
72
69
70

58
60
% of Consumers

50

40 40
40
31 30
30
24
22
18
20 17 16
12 12
1010
9 8 88
10 7 7 5
4
0 0
0
5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75
Age Group

Liked Average Mix Reaction Disliked

GRAPH 4: REACTION ANALYSED ON BASIS OF AGE GROUP

From the above graph, it is evident that, across all age


groups, a major portion of consumers liked the product.
Further opinions received from different age groups
could be compared and analysed as follows:

• Ranging from ages 5 to 55, it can be noticed that, in


every age group, more than 50% of the consumers
have liked the product.

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• In the age group of 5 years to 15 years, 87% of the
consumers have liked the products. The main reason
behind this is children are fond of juices and sweet
substances.

• They crave to have anything that is cold and the


product when sampled, was made sure was cold and
the remaining 13% is divided between average and
disliked. There were no consumers who gave mixed
reactions. This could be due to the reason that
children cannot come up with good enough reasons
as to why they like or dislike a product. They just
give their opinion.

• In age groups 15 years to 25 years, 25 years to 35


years and 35 years to 45 years and 45 years to 55
years, the reactions were almost the same. This age
group mostly consisted of college going students,
working people and house wives. The percentage of
consumers who liked the product ranged from 60 to
70%, so it could be said that, around 3 quarters of
consumers belonging to those age groups liked the
products. The main reasons for this could be that the
most consumers belonging to these age groups are
health conscious and Orange juice is considered to
be one of the most nutritious and healthy juices.
Almost 96% of the house wives who were spoken to
liked the product. House wives are home managers

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and they make decisions when it comes to daily
consumables and they wanted to buy the products
especially because they wanted their children and
the rest of their family to have it as it was safe and
healthy.

• Consumers belonging to age groups 55 years to 65


years and 65 years to 75 years, almost have the
same perception about the product. More than 50%
of the consumers jointly fell in Disliked, Average and
Mixed reaction categories mainly because consumers
belonging to the age group of 55 to 75 years are
diabetics and they do not intake or they are not
allowed to intake excessive quantities of sugar;
Minute Maid Pulpy Orange being a fruit juice and
have added sugar in it was a big no to them. Some of
them were even apprehensive about the Coca-Cola
brand name attached to the product; according to
them Coca-Cola makes only carbonated soft drinks.

12.5.5: GRAPH 5

The following graph is a representation of the


comparison and analysis of the feedback given by the
consumers based on the gender they belong to. This kind
of an analysis is important due to the fact that males and
females have different tastes, likes and dislikes

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especially when it comes to choice of foods and
beverages.

Feedback on basis of Gender

70

60

50
% of Consumers

40

30

20

10
67 65 10 13 14 15
9 7

0
Liked Average Mix Reaction Disliked
Opinion

Male Female

GRAPH 5: REACTION ANALYSED ON BASIS OF GENDER

On analysis of the above graph, it can be noted that,


the gender of the consumer has not made an impact on
the reaction obtained from the consumers. Males and
females have shown the same kind of reaction towards
the product. About 70% of the both males and females
liked the product. This may be due to the fact that
Orange juice is a universal favorite and people across the
world, across both genders love having orange juice.
Around 20% of both males and females gave an average
rating to the products and the rest were confused.

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12.6: ADDITIONAL DETAILS

The reasons given by consumers for having liked the


product were:

• It tastes like fresh orange juice.

• It is a good thirst quencher, especially in the


summer season.

• It is not bitter like other readymade juice products


that are available in the market.

• It has got real pulp in it and when one can feel the
pulp and this makes the drink tastier.

• It is a non-carbonated drink.

• It is as sweet as natural oranges that one buys in


the market.

• Due to the natural orange pulp, the juice is


healthier.

• It is a ready-to-drink fruit juice.

• The reasons given by consumers for having disliked


the product were:

• It is too sweet.

• It is too watery i.e. the consistency is not good.

• Fresh fruit juice is preferable.

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• Tropicana is preferred because that is not as sweet
as Minute Maid Pulpy Orange.

• It is too bitter.

• It is not as sweet as natural orange juice.

• It was a product of the Coca-Cola Company and ever


since the controversy, consumers are a little
apprehensive about the products of that company.

• Preferred water to drinking juice.

• It is not exactly a drink for adults; the taste is more


to suit children rather than adults.

• It tastes more like Rasna/Tang.

• The above points under categories liked and disliked


are contradictory to each other. Both categories
have few same points like the bitterness and the
sweetness of the juice. This contradiction arises due
to the following reasons:

• Consumers belonged to different age groups ranging


from as young as 5 years all the way to 75 years of
age.

• Consumers have different likes and dislikes.

• Consumers have different tastes.

• Level of health consciousness is different among


different consumers.

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12.7: SUGGESTIONS

Taking the above analysis into consideration, the


following points can be regarded for further marketing of
the product:

• Advertisements should target the entire family,


mainly because it has been observed that
irrespective of age and gender, more than 75% of
the people have liked the product and look forward
to buy it again. Advertisements should highlight the
main features of the product that is the existence of
pulp (which is already made prominent in
Advertisements); it should lay emphasis on the
health and nutrition value of the product and also on
the fact that it is as good as fresh fruit juice.

• Due to the current prices, an eyebrow raiser for


some, the product could be sold in packs of 2 or
more and there could be a price reduction.

• At Modern Trade Outlets, where shoppers buy in


bulk, Minute Maid Pulpy Orange could be given away
free, if the customer buys goods worth more than a
certain price line. This strategy is already being
carried out at the Food World outlets. It could be
introduced even at Fab Mall, Subhiksha, Spencer’s
Daily, Big Bazaar etc.

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• New flavors can be introduced into the market as
early as possible because around 30% of the
consumers were eager to know if the drink would
come in more flavors and another 10% of the
consumers did not like Orange juice so they were
anticipating the probable launch of other flavors.

• Smaller packs of Minute Maid Pulpy Orange like tetra


packs of 200-300 ml can be introduced as, when a
customer wants a small amount of the drink just to
quench his thirst for that moment, he would not
want to buy a bottle containing 400 ml or 1litre of
the juice. Therefore, smaller packs of the product do
come in handy.

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Chapter – 13

MANAGEMENT STYLE
DONT

• The company discourages such conduct and


habits which are likely to undermine the way of
life in the organization.

• If it is mandatory for the company to adopt


both the accounting standards i.e. UGAAP &
IGAAP, then the company should make sure
there should not be violation of any of the
accounting standards in UGAAP as well as in
IGAAP at any cost.

DOES

• The company should make aware and impart


knowledge to the employees regarding clear cut
bifurcation of standards used UGAAP & IGAAP.

• The company should take necessary steps so


that paper work should be as less as possible,
but this should not be at the cost of
effectiveness in work.

NOTE :

1. UGAAP -- UNITED STATES STANDARDS – GENERALLY ACCEPTED


ACCOUNTING PRINCIPLES

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2. IGAAP -- INDIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Chapter - 14

ANNEXURE
ANNEXURE 1 : MARKET SHARE OF COKE AND PEPSI

** The following shares were calculated with respect to


only Pepsi and Coca- Cola. Other companies were not
brought under the purview of the research by the
research organizations.

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ANNEXURE 2 : FACTORS AFFECTING SOFT DRINKS
MARKET

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Chapter - 15

OBJECTIVES OF THE STUDY

• To study How the Finance Department of


Udaipur Coca-Cola Marketing Company works.

• To have a broad view of the company’s


financial policies.

• To learn what points are considered while


processing claims of the discount schemes or
general bills.

• To ensure that processes are within policies


and procedures of the company.

• To ensure that the payment of the bills is


made within the specified amount of time.

• To study what formalities that have to be


fulfilled while making purchases and while
making payments.

• To ensure the transactions that occur are


properly recorded and are recorded with the
specified procedures.

• To study the work process of direct route &


indirect route.

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Chapter - 16

CONCLUSION
The Sampling activity was a good first step into
the area of Marketing and Sales. It gave good amount of
exposure mainly because after being trained, trainees
were given an opportunity to carry out the process
ourselves. It helped in developing a considerable amount
of convincing skills, because, it took a lot of it to convince
the store managers to give us cooler space to cool the
product for 2 hours and even more to convince the
customers into tasting the product and to get reviews
from them. A good understanding of the market was
accomplished as around 700 people were spoken to and
that group consisted of a variety of customers. This even
helped in the polishing of communication skills, a must-
have to survive and make it big in the present world. It
even gave a good understanding of behavior of
customers when placed in different situations. It was a
good opportunity to work on the skill of patience, as a
large number of customers were to be dealt with. It
helped in developing the kind of relations one needs to
uphold in the corporate world and it helped in building up
the right attitude.

Udaipur Beverages Limited, Jabalpur 124


As all the points in the above mentioned
paragraph, are the must-have skills for anyone in the
field of Marketing and Sales, the training period was a
good experience and a good stepping stone into the real
business world.

As a future line of research, the Marketing and


Sales Department at U.B.L. could offer projects like:

Analysis Impact of advertisements on the Sales


of a particular product

• Analysis of major trends in the Indian Non-Alcoholic


Beverage market

• Analysis of changing trends in the market for Coca-


Cola products

• Formulation of Market penetration strategies

Udaipur Beverages Limited, Jabalpur 125


Chapter – 17

APPENDIX

Total number of Consumers sampled and their opinion


Age
Group
s Gender Opinion
Mix
M F T Liked Average Reaction Disliked
M F T M F T M F T M F T
5 to
15 26 19 45 23 16 39 2 2 4 0 0 0 1 1 2
15 to 1
25 42 28 70 35 18 53 3 2 5 4 8 2 0 0 0
25 to 10 19 13 1 1 1 1 1
35 86 8 4 56 78 4 6 8 4 6 0 6 8 2 30
35 to 18 13 1 1 1 1 1 1
45 93 96 9 65 70 5 0 6 6 6 0 6 2 0 22
45 to 1
55 36 54 90 21 31 52 5 4 9 5 4 9 5 5 20
55 to 1 1 1
65 18 40 58 8 15 23 0 3 3 6 2 8 4 0 14
65 to
75 30 20 50 12 8 20 4 2 6 5 4 9 9 6 15
33 36 69 22 23 45 3 2 5 3 4 8 4 5 10
1 5 6 0 6 6 0 7 7 2 8 0 9 4 3

Key
M Male

Udaipur Beverages Limited, Jabalpur 126


F Female
T Total
L Liked
A Average
M Mixed
R Reaction
D Disliked

Table for Graph 1


Age Total No. of
Group Consumers
5 to 15 45
15 to
25 70
25 to
35 194
35 to
45 189
45 to
55 90
55 to
65 58
65 to
75 50

Table for
Graph 2
Male 331

Udaipur Beverages Limited, Jabalpur 127


Femal
e 365

Table for Graph


3
45
Liked 6
Average 57
Mix
Reaction 80
10
Disliked 3

Table for Graph 4 (In Numbers)


Age Like Averag Mix Dislike
Group d e Reaction d
5 to 15 39 4 0 2
15 to 25 53 5 12 0
25 to 35 134 14 16 30
35 to 45 135 16 16 22
45 to 55 52 9 9 20
55 to 65 23 3 18 14
65 to 75 20 6 9 15
Table for Graph 4 (Rounded Up % ages used in
Graph)
Age Like Averag Mix Dislike
Group d e Reaction d

Udaipur Beverages Limited, Jabalpur 128


5 to 15 87 9 0 4
15 to 25 76 7 17 0
25 to 35 69 7 8 16
35 to 45 72 8 8 12
45 to 55 58 10 10 22
55 to 65 40 5 31 24
65 to 75 40 12 18 30

Table for Graph 5 (In Numbers)


Gende Like Averag Mix Dislike
r d e Reaction d
Male 220 30 32 49
Femal
e 236 27 48 54

Table for Graph 5 (Rounded Up %ages)


Gende Like Averag Mix Dislike
r d e Reaction d
Male 67 9 10 14
Femal
e 65 7 13 15

Chapter – 18

MANAGEMENT STYLE

Udaipur Beverages Limited, Jabalpur 129


Every study has some limitations in terms of time,
cost or human error etc…I have tried my best at my level
to make it an original and a genuine one. Due to shortage
of time it may be that the expectations wouldn’t have
been met, still an attempt has been made inorder to
represent one of the best reports.

This project report aims at describing the processes


that are followed while making payments to the vendors,
receiving payments from the distributors. I have tried to
explain the actual process but the meaning that it has is
not what it actually is.

Some human errors would have been resulted while


preparing this project report.

Udaipur Beverages Limited, Jabalpur 130


Chapter - 19

DATA SOURCES / REFERENCES


• http://www.cybernoon.com

• http://news.bbc.co.uk

• http://www.thecoca-colacompany.com

• http://www.coca-cola.com

• http://www.ko.com

• http://www.hoovers.com

• http://www.google.com

• http://www.yahoo.com

• http://www.coca-colaindia.com

• http://www.wikipedia.org

• http://www.indiamba.com

• http://www.coca-cola.co.in

• Monthly circular for the month of March, Udaipur


Beverage Limited

• Actual processes in which training was received have


been defined.

• With the help of the senior executives of the


company an attempt has been made in order to
define the processes and procedures followed.

Udaipur Beverages Limited, Jabalpur 131

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