coca cola complete report

7/29/2019 COCA COLA COMPLETE REPORT

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HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED

PROJECT REPORT

Monitoring the health of a channel partner

CollegeALLIANCE

SCHOL OF MANAGEMENT

M.B.A (2012-2014)

NAVEEN DSOUZA


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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

CHAPTER 2: HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED (HCCBPL)

CHAPTER 3: ORGANIZATION STRUCTURE OF COCA-COLA

CHAPTER 4: DIVISIONS WITHIN COCA-COLA

CHAPTER 5: NATURE OF BUSINNESS WITHI ALTERNATIVE

BEVERAGES

CHAPTER 6: DISTRIBUTION MODEL FOLLOWED

CHAPTER 7: PARAMETERS WHICH DETERMINE THE HEALTH OF A

CHALLEP PARTNER

CHAPTER 8: SUGGESTIVE METHODS TO INCREASE THE HEALTH

OF A CHANNEL PARTNER

CHAPER 9: CONCLUSION


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CHAPTER 1: INTRODUCTION

_______________________________________________

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

Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. The Companys 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 system has made The Coca-Cola Company the worlds 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 Companys assets and resources

whilst limiting business risks.


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CHAPTER 2: HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED (HCCBPL)

_______________________________________________

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

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 softdrink brands of the nation. With access to 53 of Parles plants and a well set bottling network,

an excellent base for rapid introduction of the Companys International brands was formed. The

Coca-Cola Company acquired soft drink brands 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, HCCBPL, the Indian bottling arm of the Coca-Cola

Company. However, this was based on numerous commitments and stipulations which the

Company agreed to implement in due course. One such major commitment was that, the

Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident

shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations,

27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations

(FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range

of products for the company. It also has a supporting distribution network consisting of 700,000

retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian

market are made locally, with help of technology and skills within the Company. The complexity


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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 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 Indias 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.

2.1:VALUES, MISSION AND VISION OF (HCCBPL)

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, its up to me

COLLABORATION: Leverage collective genius


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INNOVATION: Seek, imagine, create, delight

QUALITY: What we do, we do well

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

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

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

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 canbe.

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate andsatisfy 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.


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2.2: 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 HCCBPL:

In the CARBONATED SOFT DRINKS (CSD):

In the Fanta section: Fanta apple Fanta grape


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In the Juice section:

In Minute Maid section: Puply Orange Mango Grape Mixed fruit Linbu fresh

In Schweppes section: Soda Water TONIC Water and GINGER Ale


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In KINLEY section:

In Energy drink section:


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2.3: PACKAGING DETAILS

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 mlreturnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles

Diet Coke: 330 ml can and 600 ml PET bottle

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 mlfree PET bottles and the newly introduced 200 ml Tetra Pack

Minute Maid: 400 ml and 1 litre PET bottles

Schweppes Soda Water: 300 ml returnable glass bottles

Schweppes Ginger Ale: 330 ml can

Schweppes Tonic Water: 330 ml can, 300ml returnable glass bottles

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


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CHAPTER 3: ORGANIZATION STRUCTURE OF COCA-COLA

_______________________________________________

ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

Chief ExecutiveOfficer

Vice PresidentSupply Chain

Chief FinanceOfficer

Human ResourceDirector

Vice President BSG

Regional VicePresident (North)

Regional VicePresident (Central)


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3.1: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN

HCCBPL:

AGM/AOD

lant

nagerRoute to

MarketHuman

Resource

Manager FinanceManager GeneralSales

Manager

Area Sales

Manager

Sales

Executive

Market

Developer

Distributors

And

Salesmen

Channel

Manager

Marketing

Key

Accounts

Area

Capability

Manager

Sales

Trainers


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CHAPTER 4: Divisions within COCA-COLA

There are 2 main divisions within coca-cola they are

MainlineAlternative beverages

Under Mainline coca-cola has Maaza Kinley Water Kinley soda and All returnable glass bottle (RGB)

Such asCoke, Fanta, Maaza, Thums up, Limca, Sprite etc

And even pet bottles such asCoke, Diet coke Fanta, Maaza, Thums up, Limca, Sprite etc

Under alternative beverages coca-cola has Minute Maid juice All Flavors of Fanta All cans of the products such as

Coke, Diet coke Fanta, Maaza, Thums up, Limca, Sprite etc All products of Schweppes such as

Tonic water, Soda, Ginger Ale

Burn energy drink


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CHAPTER 5: Nature of business within alternative beverages

Under alternative beverages there are two main divisions they are:

Key accountsGeneral trade

Under Key Accounts there are Schools and colleges Institutions Business tech parks Canteens MRP liquor shops Clubs Pubs Dance bars Discotheque Movie theaters Restaurants Coffee shops etc

Under General Trade there are Bakeries Kirana stores Grocery stores Super markets Small kiosks Bars etc


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CHAPTER 6: Distribution model followed in coca-cola

DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for taking up the

responsibility of distribution of products to diverse parts of the cities. The distribution channels

are constructed in such a way that the demand of customers is fulfilled at the right place and

the right time when it is needed by them.

A typical distribution chain at HCCBPL would be:

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.

DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:

Key Accounts: The customers in this category collectively contribute a large chunk ofthe 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.


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Future Consumption: This route consists of outlets of Coca-Cola products, whereina 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 stockson 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 areaalong with its neighboring areas are catered to. The consumption period is not taken

into consideration in this particular route.

DISTRIBUTION SYSTEM

Direct distribution: In direct distribution, the bottling unit or the bottler partner hasdirect control over the activities of sales, delivery, and merchandising and local account

management at the store level.

Indirect distribution: In indirect distribution, an organization which is not part of theCoca-Cola system has control on one or more of the distribution elements (Sales,

delivery, merchandising and local account management)


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CHAPTER 7: Parameters which determine the health of a

Channel Partner

In order to determine the health of a channel partner below there is a swotanalysis about sai eshwari enterprises

Strengths

1. Customers typically rebel against price increases by switching to competingproducts, but if a company has pricing power, customers will continueusing Channel partners products and services.Channel partner has the

ability to charge customers higher prices

2. Channel partners get a profit margin of 4%3. If the products gets expiry the company will take the products in return and as

an exchange the company will provide the fresh stock to the channelpartners

4. Size advantages lower Channel partners risks. The largerChannelpartner gets, the more resources they have to pursue new markets and defend

themselves against rivals

5. Lower costs lead to higher profits for Channel partner. A low cost leader canundercut rivals on price

6. When given a choice, customers are loyal to Channel partner. Instead oftargeting all customers, Channel partner only needs to target new customersin order to grow their business

7.A strong brand name is a major strength ofChannel partner. Thishelps Channel partner to distribute their the products easily to their

targeted costumers because consumers place additional value in the brand


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Weaknesses

1.An inefficient work environment means that Channel partners goods andservices are not being utilized properly

2.A high debt burden increases the risk that Channel partner goes bankrupt ifthey make a poor business decision. Increasing risks can increase Channelpartners debt interest payments

3. Weak customer service hurts Channel partners reputation and causescustomers to flee to competitors, who are more respondent

4.A weak supply chain can delay the arrival of products to Channel partnerscustomers. Unnecessary delays can hurt Channel partner over the long run,because customers will cancel orders

5. There is a high staff turnover in distributors place

Opportunities

1. Leveraging the balance sheet allows Channel partner to quickly expand intoother markets and products

2. New services help Channel partnerto better meet their customers needs.These services can expand Channel partners business and diversify their

customer base

3. Emerging markets are fast growing regions of the world that enable Channelpartner to quickly expand

4. New markets allow Channel partner to expand their business and diversifytheir portfolio of products and services


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Threats

1. Mature markets are competitive. In order for Channel partner to grow in amature market, it has to increase market share, which is difficult and expensive

2. The availability of substitute products hurts Channel partners ability to raiseprices, because customers can easily switch to another product or service (for

Eg:- Del Monte products)

3. Intense completion can lower Channel partners profits, because competitorscan entice consumers away with superior products

4. Consumers can change their tastes very quickly. Channel partner depends onknowing which goods and services consumers want


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CHAPTER 8: Suggestive methods to increase the health of a

Channel Partner

The supply of the products must be improved because many customersface the problem of irregular supply

The credit paybackperiod must be increased from 1 month to 45 daysor their must be a change in policy ofcash on delivery

The channel partner has to concentrate more on the outlets which locatedin north Bangalore such as in Devanahalli andyelahanka

The channel partner has to concentrate in cracking new outletsTheir must be a proper time should be fixed for PSRin order to visit the

market because many of the PSRs are not regular in time

The salary of the PSRs must be increased then they would workproperly in the markets

The channel partners should not treat all the customers in a similarmanner, The customers should be divided into three groups such as

Golden customers: The customers who buy large N.O of stockEg: Mudhuloka, Drops, DPS etc

Silver customers: The customers who buy average N.O of stockEg: Volga wines, SLNS wines, wine yard, spritz and more etc

Bronze customers: The customers who buy limited N.O of stockEg: college canteens, small restaurants etc

The PSRs should daily report to the distributors place


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CHAPTER 8: CONCLUSION

The activity was a good experience in the area of Sales. It gave me a good amount of

exposure mainly because after being trained, I got an opportunity to carry out the

process with the help ofASM Team leader and PSRs. It helped me in developing a

considerable amount of convincing skills, because, it took a lot of it to convincing the

store managers to buy the products and even in collecting cheques and even more to

convince the customers to buy new products which they werent selling before. A good

understanding of the market was accomplished as I spoke to many people 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.

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.

coca cola complete report

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