A Franchisee Of Coca Cola

@ Kandhari Beverages Pvt. Ltd.

The Bottles Of Coca-cola Since 1899

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,  and so shaped that, even if broken, a person could tell at a glance what it was.

There are 2 operations in INDIA

COBO

•Company owns bottling operation•Comes under HCCBPL. (Hindustan Coca- Cola Beverages Private Limited).

FOBO

•Franchise owned bottling operations.•13 franchise bottlers across INDIA.

65%

35%

Contribution

COBOFOBO

Source www.cocacolaindia.com

•KANDHARI GROUP was established in 1967

by Late Mr. Teja Singh Kandhari.

•The group’s first venture was a bottling unit

as a franchisee of PARLE’s soft drink

manufacturing “ Gold Spot ” under license

from PARLE established at Amritsar in the

north Indian state of Punjab.

•Kandhari Beverages Ltd is among Coca-Cola

India's top 4 franchisee bottlers.

Group Companies of KBLKandhari beverages Pvt. Ltd., Nabipur Punjab and Baddi, Himachal Pradesh

Versatile Polytech Pvt. Ltd., Gurgoan , Haryana

Heritage beverages Pvt. Ltd,. Gurgaon, Haryana

Universal Electronics & Communications Pvt. Ltd., Gurgoan, Haryana

Farmers Diary Products (INDIA) Pvt. Ltd.

Day and Night news channel, Chandigarh.

 Strengths Weaknesses

Internal • World leading brand

• Strong financial base

• customer loyalty

• Strong relations with

the sports world.

• Marketing strategies

‘think global act local’.

• Lack of popularity of many Coca-

Cola’s brands.

Result of low profile or non-

existent advertising.

Health issues.  

 Opportunities Threats

External Increase in demand of

packed water bottle.

Diversification for other

business like Food and

snacks.

Increase product portfolio in

the non- carbonated drinks

market.

• Commodity prices growth

• The new "healthy" and organic food

trends

• Strong competitors penetration in the

non carbonated drinks market.

• Changing health-consciousness

attitude .

Opportunity or Threat ??

INDIA CHINA RUSSIA MEXICO0

20406080

100120140160180

0.7200000000000

01 1.9 2.9

102.2

2.16 7.7 14.2

160

19982009

The above chart shows per capita consumption of cola products in INDIA was 0.72 L in 1999 and 2.16 L in 2009. India has one of the lowest consumption and shows the

potential to grow. The maximum coke consuming country is MEXICO where per capita consumption in 1999 was 102.2 L

and 160L in 2009.

Major Competitors Of Coca Cola

Battle of brands

10.90%

0.90%

CLOUDY L...

38%

18%

44%

COLA Maket share

PEPSI

THUMS-UP

COCA-COLA

FANTA

MIR

INDA

11%9%

ORANGE

15.30%8.90%

3.50%

CLEAR LIME

13%

38%21%

27%FROOTI

COKE

PEPSI

OTHERS

MARKET SHARE OF FRUIT DRINKS

KINLEY AQUAFINA BISLERI7.50%

8.00%

8.50%

9.00%

9.50%

10.00%

10.50% 10.30%

9.80%

8.70% PACKED WATER

Packed Drinking Water

Growth 2010

INDIA

TURKEY

BRAZIL

LATIN A

MERIC

A

FRANCE

GERMAN

Y

0%

5%

10%

15%

20%

25%

30%

35%

29%

18%

12%

4%5%

2%

UNIT VOLUME GROWTH IN 1ST QUARTER 2010

Financial Highlights OF FIRST QUARTER 2010

•net revenues increased 5%.•operating income increased 17%.•Cash from operations in the quarter increased 52% to $1.3 billion.

The Project

MARKET REVIEW OF 200ML SKU’ STUDY ON

RETAILERS.

Region- Chandigarh

Chota Coke -- 200 ml

• In 2002, CCI launched 200 ml bottles (Chota Coke) priced at Rs

5.

• 200 ml coke was launched to capture rural market.

• Extensive marketing in the mass media as well as through

outdoor advertising.

• CCI also launched television commercials (TVCs) targeted at

rural consumers.

• Birth of ‘Thanda matlab coca cola’.

• CCI marketing initiatives successful, and as a result, its rural

penetration increased from 9% in 2001 to 25% in 2003.

Objectives and Methodology

• Primary Objectives.• To know the reason behind

low MARKET SHARE of 200ml variant.

• To increase the placement of the 200ml variant.

• Secondary objective• To increase the retail

outlets for coca cola.

• Route Visit for Sales & Marketing Team.

• Method of Data Collection.• Research Instrument • Area of Sampling  • Sample Size  • Sampling Procedure

Methodology

Grocerry; 25

Con-vienence;

27

E & D 1; 20

E & D 2; 28

No. Of Outlets Surveyed

GrocerryConvienenceE & D 1E & D 2

300ml; 30%

500ml; 40%

1.25L; 8%

2 L; 22%

Sales

300ml500ml1.25L2 L

< 10% 10% - 20% 20% - 30% 30% & above0

5

10

15

20

25

30

35

40

45

50

12

44

36

8

Contributions of soft drinks in the total sales of retailers

This chart was specifically prepared to ascertain the contributions of the soft drinks in the total sales of the outlets so as to ascertain the research is takes place in the potential market rather just doing the research which has no meaning.

Analysis and Interpretation

Reasons for not keeping the 200ml SKU :• 48% slack of demand of the SKU at their counter.• 24% stressed storage capacity of their visi-coolers is

not enough.• 8% said that salesman doesn’t inform them about the

availability of 200ml.• 12% irregular supply of 200ml.• 8% retailers were such who don’t want to keep RGB

stock at their shops.

Analysis and Interpretation Contd.

YES NO0%

10%

20%

30%

40%

50%

60%

70%

61%

39%

Un-awarness

Major reasons

• 36% very less or no advertisement of this

variant.

• 27% viewed that price difference between

200ml and 300ml is very negligible.

• 31% retailers believe that consumer is

highly satisfied with the quantity of 300ml.

• Few retailers as of 8% said no extra

benefits are given to the retailer to push

the non-productive variant in the market.

Analysis and InterpretationContd.

Factors cited by retailers to increase the sale of 200ml

 

• 38% retailers viewed that the

availability of this variant has to be

increased through different daily

schemes.

• 23% said that increasing display will

help to turn on the sale of 200ml.

• 18% said more advertisement should be

given in the local newspapers or

hoardings should be fixed at prime

locations displaying 200ml.

• Reducing MRP was another suggestion.

Retailers would be attracted to keep the stock of 200ml if special schemes were given only for this variant.

YES NO0%

10%

20%

30%

40%

50%

60%

70%

59%

41%

THE PLACEMENT DRIVE

• During the project 200 ml SKU was placed across Chandigarh in more than 70 outlets.

• Secondary task was to increase retail outlets for coca cola wherein, 8 petrol pumps were, 3 gyms in Chandigarh and few grocery and convenience stores were added.

• Did MIT and EDSR and PRE SELL at various occasions.

Findings and Recommendations

Findings

• Brand pack shortage • Scheme

Communication.• Bill cuts• Leakage and

Breakage • Customer

Relationship• SGA Problems

Recommendations

• Brand pack availability• Review of sales team• Incentives• Bills cuts • Leakage and breakage • Promises should be

kept

Recommendation for 200ml

• Awarenessnewspapers, hoardings, flange. Availability

• Combos scheme.• Contest for retailers.

• Daily schemes• UTC (under the token scheme)

Thank you !!