A GRAND PROJECT ON cocacola

CHAPTER - I GENERAL INFORMATION ۩ COMPANY INTRODUCTION ۩ ۩ ۩ ۩ ۩ ۩ ۩

ORGANIGATION STRUCTURE MISSION, VISION AND VALUE FACT SHEET OF THE COMPANY MILESTONE AWARDS ISO CERTIFICATE PRESIDENT TALK

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۩ COMPANY INTRODUCTION

C

oca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. CocaCola 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 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 2

ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.

The biz.system of coca-cola in India directly employs approximately 6,000 people, & indirectly creates employment for many more related industries throw our wash procurement, supply and distribution system.

The vast Indian operations comprise 25 companies owned bottling operations & 24 franchises –owned bottling operations. The apart a network of contract packers also mfg. a range of the product for company. On the distribution front, 10 tone trucks, open-bay three wheelers that can navigate the narrow alleyways of Indian cities, ensure that our product available in each corner of the country.

The coca cola is responsible for the mfg. distribution & sales of product across the country.

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ŰŠORGANIGATION STRUCTURE

Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central) ORGANIZATION STRUCTURE IN COCA-COLA, INIDA

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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 Management

Region Channel

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ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN HCCBPL:

AGM/AOD

Plant Manager

Route to Market

Human Resource Manager

General Sales Manager

Finance Manager

Area Sales Manager

Channel Manager

Sales Executive

Market Developer

Area Capability Manager

Marketing

Sales Trainers

Key Accounts

Distributors And Salesmen

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ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

۩ MISSION, VISION AND VALUE

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ur mission, vision and values outline who we are, what we seek to achieve, and how we want to achieve it. They provide a clear direction for our Company and help ensure that we are all working toward the same goals.

• OUR MISSION Our mission declares our purpose as a company. It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto.

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.

• OUR VISION Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth.

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 quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

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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

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۩

FACT SHEET OF THE COMPANY

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he Coca-Cola Company is the world’s largest beverage company, refreshing consumers with more than 2,800 products. Along with Coca-Cola®, recognized as the world’s most valuable brand, the Company’s portfolio includes 12 other billion dollar brands, including Diet Coke®, Fanta®, Sprite®, Coca-Cola Zero™, vitaminwater®, POWERADE®,Minute Maid® and Georgia™ Coffee. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees.

Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the Company’s beverages at a rate of 1.5 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that protect the environment, conserve resources and enhance the economic development of the communities where we operate.

Fast Facts: • Established: 1886 • Ranking: We own 4 of the world’s top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta • Company Associates: 90,500 worldwide (as of December 31, 2007) • Operational Reach: 200+ countries • Consumer Servings (per day): 1.5 billion • Beverage Variety: We offer more than 2,800 products including diet and regular sparkling beverages, and still beverages such as 100 percent juices, juice drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages.

• New York Stock Exchange Ticker Symbol: KO

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Our Commitment to Sustainability – 2007/2008 Highlights • Respecting People – We offered more than 1,600 training classes to Company associates.

• Protecting the Environment – We achieved a 2% improvement in water use efficiency in 2007 as compared to 2006.

• Supporting Communities – In 2007, The Coca-Cola Company and The Coca-Cola Foundation made charitable contributions of $99 million to community initiatives worldwide.

• Offering Safe, Quality Products – We launched more than 150 new lowand no-calorie products in 2007, increasing our low- and no-calorie beverage portfolio by 17%.

2007 Financial Highlights: • Our portfolio includes 13 billion dollar brands.

• Unit case volume grew 6% to 22.7 billion unit cases worldwide (as compared to 2006).

• Net operating revenues grew 20% to $28.9 billion (as compared to 2006).

• More than 70% of our net operating revenues and nearly 75% of our unit case volume are generated outside of North America.

• We invested $4.1 billion to acquire glaceau, maker of vitaminwater – the fast-growing premier active-lifestyle beverage.

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۩ MILESTONE Did

you Know?

Around the World: The Coca-Cola Company Citizenship Highlights Vietnam: Launched the Coca-Cola Pushcart Project, which has provided pushcarts, initial product and sales training for more than 4,000 disadvantaged Vietnamese women since 2002.

Kenya: Partnered with CARE to bring wells and water storage facilities to 45 schools in western Kenya.

China: Helped build 57 schools and more than 100 libraries in impoverished areas through a partnership with The China Youth Development Foundation called Project Hope.

Italy: Created programs to encourage physical activity around the world, such as “Schools in Motion” in Italy, in which more than 130,000 students from 1,200 schools have participated.

Uganda: Helped to build a state-of-the-art wastewater treatment plant that reduces water usage and returns treated water to the community for irrigation.

Equador: Partnered with the Galapagos Foundation to establish a recycling education center. As part of the project, approximately 8,700 kg of recycled goods are collected each month.

United States: The Coca-Cola Foundation awarded more than $26 million in higher-education scholarships to 3,250 students in the United States since 1986.

Global: The company and foundation spent $76 million on community projects in 2005

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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 technology, which improved efficiency and produ ct quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hotweather 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.

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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.

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.

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In the 1960s: Introduction of new brands 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 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.

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(From left): Bill Schultz, CEO, Hindustan Coca-Cola Beverages Pvt ltd, Dr Madhav Mehra, President of the World Council for Corporate Governance, UK, Baba Hardev Singhji Maharaj, Head Nirankari Mission, Ola Ullsten, former Prime Minister of Sweden, Sudhanshu Pokhriyal, Director Hyderabad & Coastal Andhra Pradesh operations & Ameer Shahul, Region PA & C Manager (south), recieving the Golden Peacock trophy & the citation.

۩AWARDS

C

oca-Cola Wins Golden Peacock Awards For Environment Management In India

In recognition of Coca-Cola’s efforts in water management & conservation, World Environment Foundation jointly with World Council for CorporateGovernance conferred Golden Peacock award to Coca-Cola India’s Atmakuru Unit in AndhraPradesh.

Bill Schultz, CEO, Hindustan Coca-Cola Beverages Pvt Ltd & Sudhanshu Pokhriyal, Director Hyderabad & Coastal Andhra Pradesh operations, received the prestigious award from Ola Ullsten, former Prime Minister of Sweden at a function in the Himalayan foothills of Palampur.

Judged by the distinguished panel headed by Justice P N Bhagwati, former Chief Justice of India, Atmakuru unit was selected for its efforts 15

in reducing water consumption for beverage production by 20 per cent in last two years. In addition, the sustained drive of the plant helped increased ground water recharge inside the plant premises and the surroundings by 25 per cent.

“As a Company, we remain committed to continually improving our operations to optimize the use of resources for sustainable growth”, said Bill Schultz while receiving the award.

Baba Hardev Singhji Maharaj, Head Nirankari Mission and Dr Madhav Mehra, President of the World Council for Corporate Governance, UK also praised the noteworthy efforts of Coca-Cola in India.

Atmakuru unit has also implemented a briquette-fired boiler replacing petroleum based fuel with briquette made from agricultural waste, which helps the Company in combating global warming by reducing carbon footprint. “This award truly recognizes the importance of doing the right thing. We will continue to strive to have a positive impact in the communities we serve” concluded Bill Schultz.

In the past, the Atmakuru Unit has won laurels for its best environmental practices. Some of them include - AP Pollution Control Board Award for Cleaner Production for Excellence in Water conservation in 2003; Appreciation from National Safety council, Best Employer Award from AP Government 2005 and CII-Exim Bank recognition for Business Excellence in 2005.

Coca-Cola India Wins Golden Peacock Global Award for Corporate Social Responsibility Coca-Cola India was awarded the prestigious 2008 Golden Peacock Global Award for Corporate Social Responsibility on Feb. 15 during a global conference in Vilamoura, Portugal. Dr. Ola Ullsten, former prime minister of Sweden, presented the award to Deepak Jolly, Vice-President, Public Affairs & Communication, Coca-Cola India, on behalf of the Company.

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The Golden Peacock Global CSR Award showcases the “human face of business” by recognizing the continuing commitment of companies “to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families and the local community and society at large.”

A distinguished jury chaired by Dr. Ola Ullsten, former prime minister of Sweden, selected this year’s Golden Peacock award winners.Presenting the award to the Company, Dr. Ola Ullsten, said, “Golden Peacock Awards have been instituted by World Council for Corporate Governance, UK to create competitiveness in the area of Corporate Social Responsibility. We are hopeful that Coca-Cola India’s effort in promoting sustainable communities sets an example for other organizations to follow.”

Her Excellency Ms. Nilima Mitra Ambassador of India in Portugal said that she was very impressed with the manner in which Coca Cola is fulfilling its CSR in India in water management and conservation especially the intervention to ensure potable water to 1000 primary schools in India.

Commenting on the Coca-Cola India winning the award, Atul Singh, President & CEO, Coca-Cola India, said, “Coca-Cola India has always placed high value on good citizenship and has undertaken several initiatives for community development and inclusive growth. We are gratified to receive this global award and are humbled at being recognized for the little contributions that we have been able to make to preserve and protect the environment and towards community development. We are also establishing the Coca-Cola India Foundation which will further strive to make a positive impact on local communities.

The Company remains committed to work with stakeholders and 17

communities across the country in its bid to contribute to mutual growth and development.”

The award recognizes Coca-Cola India’s water conservation/management and community development initiatives. The Company has installed 320 Rain Water Harvesting (RWH) structures in 17 states and has restored several traditional water bodies like the Sarai Bawari and Kale Hanuman ki Bawari in Jaipur and check dams across the country.

Additionally, the Company recently set a target to reach a “net-zero” balance with respect to groundwater usage by 2009 and launched the “Elixir of life” project to provide drinking water to nearly 30,000 children in 100 primary and panchayat schools in and around Chennai. The Company plans to provide clean drinking water in 1,000 schools by 2010.

Coca-Cola India also promotes sustainable packaging through PET recycling and has undertaken several projects in the areas of primary health, primary education and infrastructure for local communities.The Company has undertaken these Citizenship initiatives in partnership with government, NGOs, educational institutions and local communities.

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In 2006, the World Environment Foundation (WEF) honored Coca-Cola India with the Golden Peacock Environment Management Special Commendation Award for its world-class environment practices.

Dr. Olla Ullsten, former Local community using Prime Minister of Sweden water from the and Chairman of the rejuvenated Sarai Bawari Awards jury presenting at Amer, near Jaipur, the Golden Peacock Rajasthan Global Award for Corporate Social Responsibility to Deepak Jolly, Vice President, Public Affairs & Communication, CocaCola India.

A photo of the drinking water project in 100 schools, launched by the Company in Chennai, which will benefit nearly 30,000 children on completion

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Community Recognition To Coca-Cola India Coca-Cola India was recently acknowledged for the various citizenship initiatives in & around Kaladera in Jaipur, Rajasthan. Sunil Sharma, who’s been associated with Coca-Cola India received the certificate of appreciation on behalf of the company from the Cultural Council of the Kaladera community during the celebration of Holi, the festival of colors & joy.

"I’m deeply honored by the recognition of the people of Kaladera" said Sunil Sharma with his face painted in the colors of festivity.

Certificate of appreciation given "Coca-Cola India, has always placed

by Cultural Council, Kaladera very high value on citizenship and has Community in Rajasthan taken various initiatives to conserve water the area."

Coca-Cola India has worked with the government, local bodies & the entire community of Kaladera in the area of water conservation. This includes restoration of Sarai Bawri & Kale Hanuman ki Bawri - historical step wells (over 400 years old), providing water to the people of the community. The company has constructed over 140 recharge shafts in the area. Rain water harvesting projects have been set up in various schools, government bodies & the community areas.

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No other company has ever come forward & worked towards the welfare of the Kaladera Community except Coca-Cola. We appreciate the efforts taken by Coca-Cola for the conservation of water in Kaladera." said Bhura Mal Sharma, a 65 year old farmer.

"The Rain water systems installed by Coca-Cola ensure that the rain water goes back into the ground which is very beneficial to the farmers and if we get good rains this year the results will speak for themselves." Said Shri Sitaram Sanwaria, President, Hanuman Sahaya 70-year-old farmer. Cultural council, Kaladera Community and a local resident, In addition, Coca-Cola India has presenting the certification of undertaken an annual scholarship appreciation to Sunil Sharma, as program for the students in the nearby a token of appreciation to Cocavillages for the fifth consecutive year. Cola India for its community Amongst various educational efforts during Holi celebrations, initiatives, Coca-Cola also supports a festival of colors where people ’Aap Ki Beti’ (your daughter) program play with colors and have fun & to provide education to a girl child. enjoyment. The festival aims at bringing the society together & "The roads, hospitals, medical camps, strengthen the social fabric of the hand pumps etc. all indicate that Coca- country Cola cares for Kaladera. We are confident that the company will carry on need based developmental programs in future also. said Shri Bhagwan Sahai ji, a local social worker and leader. The presence of a company like Coca-Cola in the area is a blessing for the local people of Kaladera." added Shiv Sahay, a 60 year old farmer and a civil contractor.

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"The certificate of appreciation that we to Mr Sunil Sharma is a token of thanks for the relentless efforts of Coca-Cola for the welfare of the community", said Sitaram Sanwaria, President, Cultural council, Kaladera Community.

"There is no better ways to be recognized for your dedicated community efforts than by the people of the community themselves. Getting such a recognition at Holi, which is a festival of colors and binds people together shows the confidence that the community has in us", concluded Sunil Sharma.

Kaladera Community Recognises Coca-Cola’s Community Initiatives Coca-Cola India was recently acknowledged for the various citizenship initiatives in & around Kaladera in Jaipur, Rajasthan. Rakesh Pathak, Unit HR Manager, Kaladera plant and Sunil Sharma, who’s been associated with the company for a long time were felecitated by the villagers of Dabar Basti in Kaladera.

As part of public-private Rakesh Pathak, Unit HR Manager, partnership, Coca-Cola Kaladera plant & Sunil Sharma being installed a new borewell felicitated by Chhittarmal Hatwal, recently in the area to provide Sarpanch (head) of Kaladera at the water in the houses of villagers. community event Chhittarmal Hatwal, Sarpanch (head) of Kaladera presented a Safa (head gear) to Rakesh Pathak & Sunil Sharma as a mark of gratitude to the company.

"We are deeply honored by the recognition of the people of Kaladera" said Rakesh Pathak. "Coca-Cola India, has always placed very high value on citizenship and has taken various initiatives to conserve water the area."

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Coca-Cola India has worked with the government, local bodies & the entire community of Kaladera in the area of water conservation. This includes restoration of Sarai Bawri & Kale Hanuman ki Bawri - historical step wells (over 400 years old), providing water to the people of the community. The company has constructed over 140 recharge shafts in the area. Rain water harvesting projects have been set up in various schools, government bodies & the community areas.

"No other company has ever come forward & worked towards the welfare of the Kaladera Community except Coca-Cola. We appreciate the efforts taken by Coca-Cola for the conservation of water in Kaladera."

Chhittarmal Hatwal, Sarpanch (head) of Kaladera.

In addition, Coca-Cola India has undertaken an annual scholarship program for the students in the nearby villages for the fifth consecutive year. Amongst various educational initiatives, Coca-Cola also supports ’Aap Ki Beti’ (your daughter) program to provide education to a girl child. ’Water Efficient Unit’ Award to Coca-Cola India Hindustan Coca-Cola Beverages Pvt Ltd, Varanasi unit was confered with the National award for Excellence in Water Management for being the ’Water Efficient Unit’ by the Confederation of Indian Industry (CII).

There were in all 38 companies shortlisted by CII for this award. The winner was chosen by nine member jury panel.

Venkata Ramana Rao - Minister of Infrastructure - Andhra Pradesh presented the award to G S Raghu - Region Manager-Technical & Quality (North) and Raman Goel, Factory Manager, Hindustan CocaCola Beverages, Varanasi.

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The various facets of water management highlighted at the CII competition were water conservation efforts for reduction in specific water consumption, reduction in waste water discharge, road map to achieve zero waste water discharge, sustainability projects, rain water harvesting and community involvement in water conservation.

National Award for Excellence(from left) - Venkata Ramana in Water Management for ’WaterRao - Minister of InfrastructureEfficient Unit’ Andhra Pradesh presenting the award to G S Raghu - Region Manager-Technical & Quality (North) and Raman Goel, Factory Manager, Hindustan Coca-Cola Beverages, Varanasi

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Coca-Cola wins Bhagidari Award- Fourth time in a row Coca-Cola India won the Delhi Government's Bhagidari Award for the 4th consecutive year for its efforts in Water Conservation and Community Development. The award was presented on the second day of the two day Bhagidari Utsav at Pragati Maidan, New Delhi on February 3, 2007 by the Hon'ble Chief Minister of Delhi, Smt. Ms. Sheila Dikshit.

We took this opportunity to also present the Water Calendar 2007 to the Hon'ble CM. The Bhagidari Utsav is an annual event to celebrate the success of 'Bhagidari' - A public-private-community partnership program launched by the Delhi government a few years ago.

Among the highlights of the Utsav was an exhibition cum display by some of the partners of the Delhi government, where each partner showcased its initiatives to make Delhi a 'better' place. In recognition of Coca-Cola's efforts in Water Conservation and PET Recycling, we were given two stalls to outline our initiatives in these areas. Ms. Dikshit was one of the first to visit our PET Recycling stall and after being briefed on our PET Recycling program, she urged the Company to spread the awareness on PET Recycling not just amongst the visitors to the

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Bhagidari

Utsav

but

also

among

people

at

large.

Our Water Conservation stall was visited both by the Hon'ble Chief Minister Ms. Sheila Dikshit as well as by the Hon'ble Mr. A. K. Walia, Minister for Finance, Planning, P.W.D & Urban Development, Delhi Government, who were briefed about the various programs undertaken by the Company to spread awareness and to conserve water. The dignitaries were very appreciative of our efforts. We had showcased a device called 'Drip Gauge' for the first time in the country at the stall. Drip Gauge is a simple but effective tool to sensitize people to save water. A 3-D Rain Water Harvesting (RWH) model demonstrating the utility, functioning and commissioning of Rain Water Harvesting projects at individual households & residential colonies was also on display. In addition, people were apprised of simple methods to Reduce, Reuse, Recycle and Recharge water in their daily lives.

Our stalls evoked tremendous response from all stakeholders and nearly 3000 people visited our stalls during the event. Of these, nearly 2500 participated in the two quiz contests that we ran at the stalls. Several Resident Welfare Associations and NGOs also approached us seeking our guidance and help for RWH and PET Recycling programs in their colonies.

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World Environment Foundation Awards - 2005 Golden Peacock Environment Management Award to Kaladera unit The World Environment Foundation (WEF) awarded the prestigious Golden Peacock Environment Management Award 2005 (GPEMA) to the Coca-Cola bottling plant at Kaladera, near Jaipur, in recognition of its world-class environment practices. Coca-Cola Indias ultra-modern ISO 14001 certified bottling plant in the State won this top award in the medium scale Food & Beverage category from amongst more than 17 entries. The Kaladera unit is the fourth plant to get this distinction in the Coca-Cola India after Baddi (Himachal Pradesh), Ameenpur (Andhra Pradesh) and Dasna (Uttar Pradesh).

The Award was presented to the plant team at a glittering function at Palampur by Dr. Ola Ullsten, former Prime Minister of Sweden.

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The Kaladera unit qualified on stringent selection criteria of an eminent international and national jury of experts after a thorough evaluation of the plants compliance with a WEF prescribed program assessment format covering various issues related to environment management. The assessment covered a period of one year from 1st April 2004 to 31st March 2005 and several environmental performance indicators were monitored and evaluated according to WEFs stringent parameters, for grant of this award. Some of the environmental performance monitors are: energy use, water use, wastewater discharge, compliance with Government regulations and positive impact on local community.

The Golden Peacock Environment Management Award The GPEMA is designed to encourage and recognize effective implementation of environmental management system and this achievement has been made possible by the plants adherence to CocaColas total quality program called The Coca-Cola Quality system (TCCQS). TCCQS is all encompassing management system (Total Quality) covering environment management and other business aspects such as safety and loss Prevention (SLP), product quality, packaging quality, process capability improvement and customer satisfaction.

GPEMA has been instituted by the Institute of Directors in association with World Environment Foundation (WEF) and is designed to encourage and recognize effective implementation of environment management system. The awards are given separately for manufacturing and service organizations, and are assessed under the following categories, viz, Large Enterprises (251 and above employees), Medium Enterprises (51 to 250 employees), and Small Enterprises (upto 50 employees).

WEF is a non-profit NGO, which strives to foster partnerships and improve links between industry and environmentalists for developing innovative strategies to minimize the environmental degradation.

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ۊ ISO CERTIFATE All India Division COBO’s are now ISO 14001 certified

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ll 25 of the India Division’s Company-owned bottling plants have gained the international standard ISO 14001 Environment Management System certificate.

The ISO 14001 certificate is the internationally recognized standard of Environmental Management.

A company must demonstrate management commitment, the total involvement of all employees and a compliance with applicable regulatory and internal company standards.

The Company started its compliance effort in February, 2002 and the Bidadi plant near Bangalore in the southern State of Karnataka was the first plant to receive this prestigious the tough evaluation criteria and standards of the ISO auditors.

After only 15 months, when certifying agency Det Norske Veritas completed its audit and granted the ISO certification to the Patna plant in eastern State of Bihar, every plant in the Company owned bottling system held the coveted certificate.

"We have been able to achieve this due the unwavering commitment and belief demonstrated by all our associates in protecting, preserving and enhancing the environment," says India Division President Sanjiv Gupta.

The India Division Environment Resource Management team guided the plant teams in implementing systems that helped fulfill the requirements of the ISO Certifying system. Strict division compliance with the eKO system ensured that the bottling plants were ready to meet the tough evaluation criteria and standards of the ISO auditors.

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The environment management system has resulted in other significant business benefits, including conservation of resources, increased productivity and reduction of overall wastages.

The Division is now working hard to extend the ISO footprint across the entire franchisee owned bottling system as well. accreditation in January 2003.

Strict division compliance with the EKO system ensured that the bottling plants were ready to meet.

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۩

PRESIDENT TALK

President's profile

Atul Singh

P

resident & Chief Executive Officer, Coca-Cola India

Atul Singh is the President & CEO of Coca-Cola India, a responsibility that he took over on September 1, 2005 after working as the President of East, Central & South (ECS) China Division of Coca-Cola. Atul is responsible for Coca-Cola″s operations in India, Sri Lanka, Bangladesh, Bhutan, Nepal and the Maldives.

Under his stewardship, Coca-Cola′s business in India has undergone major transformation and reported nine consecutive quarters of growth.

Atul joined The Coca-Cola Company in 1998 as Vice President, Operations of Coca-Cola, India Division. He led the Franchise Operations and Key Accounts group of the India Division from 1998 to 2001.

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Atul then moved to China for his stint as Region Manager of East China, China Division and later became the President of the ECS, China Division. The Division consisted of Shanghai, the Swire Territories of China, Hong Kong and Taiwan. Additionally, Atul was also responsible for the global and strategic Key Customer Relationships for Greater China and was a member of the Customer Leadership Council. Prior to this, Atul served as Deputy Division President and headed the Operations group of China Division. Under his leadership, mainland China operations were among the fastest growing Coca-Cola businesses.

Prior to joining Coca-Cola, Atul worked with The Colgate Palmolive Company for 10 years and held several roles including Country General Manager, Nigeria (1995-1998), Finance Director and then Country General Manager, Romania (1992-1995) and Finance Manager, Body Care Division, USA (1990-1992). Prior to Colgate, Atul worked as an Auditor with Price Waterhouse in New York.

Atul is currently the Chairman of American Chamber of Commerce (AMCHAM) in India, Chairman of the Environment Committee of Confederation of Indian Industry (CII) and the Chairman of the Sports Committee of Federation of Indian Chambers of Commerce and Industry (FICCI). Atul is also a member of the Young Presidents′ Organization, a global body dedicated to creating ″Better Leaders through Education and Idea Exchange′.

Atul is a Commerce Graduate from St. Xavier′s College, Kolkata and holds an MBA degree from Texas Christian University, USA. He has traveled extensively through the globe and has had working stints in Asia, Africa, Europe and North America.

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CHAPTER – II PRODUCTION & PRODUCTS ۩ PRODUCTION PROCESS ۩ LIST OF PRODUCTS ۩ PRODUCT DISCRIPTION

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۩

PRODUCTION PROCESS

MANUFACTURING PROCESS

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he manufacturing of the products of Coca-Cola involves the following steps:

• Water is received from the River Cauvery 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 Pune, is blended with the sugar syrup • 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 depalletized, 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.

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۩ LIST OF PRODUCTS

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ŰŠ PRODUCT DISCRIPTION Brand Name: Coca-Cola

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oca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world.

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

Brand Name: Fanta 59

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anta: Available in Europe since the 1940s, Fanta was introduced in the United States in 1960. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation.

Beginning in 2009, the U.S. markets will see Fanta Regular Orange, Fanta Zero Orange, Fanta Apple and Fanta Grapefruit in 100% natural flavors.

Available in the following flavors: Aloe Vera Muscat, Apple, Apple Grape, Apple Kiwi, Apple Peach, Apple Vanilla, Apricot, Banana, Banana Fermented Milk, Berry, Berry Blackcurrant, Berry Cherry, Berry Orange, Birch Beer, Bitter Herbal, Bitter Orange, Bitter Water, Blackcurrant, Blackcurrant Blueberry Raspberry, Blackcurrant Lemon, Blueberry, Blueberry Salacider, Bubble Gum, Cherry, Citron, Citrus Blend, Club Soda, Coconut Pineapple, Cranberry, Cranberry White Grape, Floral Lemon, Fruit Punch, Fruit Punch Orange.

Brand Name: Kinley

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inley: Kinley is a carbonated water that comes in wide array of variants such as tonic, bitter lemon, club soda and a myriad of fruit flavors.

Available in the following flavors: Apple Peach, Bitter Grapefruit, Bitter Herbal, Bitter Lemon, Bitter Water, Blueberry Pomegranate, Club Soda, Ginger Ale, Lemon and Raspberry.

Available in the following locations: Austria, Bulgaria, Czech Republic, Denmark, El Salvador, Germany, Hungary, India, Israel, Italy, Netherlands, Poland, Slovakia, Sweden, Switzerland, United States, West Bank-Gaza and Zambia.

Brand Name: Limca 61

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imca: This thirst-quenching beverage features a fresh, light lemon-lime taste and fun-loving attitude. It's a home-grown, national treasure in India, where it was acquired by The CocaCola Company in 1993. Limca continues to build a loyal following among young adults who love the lighthearted way it complements the best moments of their lives.

Available in the following flavor: Lemon Lime.

Available in the following locations: India, Nigeria, United Arab Emirates and Zambia.

Brand Name: Sprite

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Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst.

Available in the following flavors: Bitter Lemon Citrus Grapefruit, Citrus,

Lemon

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Lemon

Lime.

Brand Name: Thums-up 63

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hums-up is also considered to be a cola drink. It is hard in comparison to coke. It is preferred by all section of consumers but especially to teen-agers. It is a big source of company to cash its publicity.

Brand Name: Kinley water

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inley water is a fresh and mineral water and market competitor of Bisleri and Aquafina.

Brand Name: Minute maid

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n Minute maid pupply orange cold drink no gas only based on orange juice. It is a non-aerated soft drink and market competitor of Tropicana Twister.

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CHAPTER - III

MARKETING RESEARCH ۩ SITUATION ANALYSIS ۩ ۩ ۩

DISTRIBUTION CHANNEL SALES PROMOTION MARKETING MIX

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۩ SITUATION ANALYSIS Market Analysis:

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he market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding it’s business as both the internal and external environment and their respective influences will be decisive traits in relation to Coke’s success and survival in the soft drink industry.

Internal Business Environment The internal business environment and its influence is that which is to some extent within the business’s control. The main attributes in the internal environment include efficiency in the production process, through management skills and effective communication channels. To effectively control and monitor the internal business environment, Coke must conduct continual appraisals of the business’s operations and readily act upon any factors, which cause inefficiencies in any phase of the production and consumer process.

External Business Environment The External business environment and its influences are usually powerful forces that can affect a whole industry and, in fact, a whole economy. Changes in the external environment will create opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the economy, changing customer attitudes and values, and demographic patterns heavily influence the success of Coka Cola’s products on the market and the reception they receive from the consumers.

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Product Life cycle: When referring to each and every product or service ever placed before the consumer i.e. in the long term all the existing products and services are dead. For e.g.:- Replacement of Ford Cortina ( a highly successful car) by Ford Sierra, the replacement of sierra by the Ford Mondeo and the replacement of the old Mondeo by the new Mondeo in 2001. So every product is born, grows, matures and dies. So in the commercial market place products and services are created, launched and withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases: Development, Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which is evidenced primarily by the fact that they have a large, loyal group of stable customers.

Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determinant of profitability. In foreign markets the product life cycle is in more of a growth trend Coke's advantage in this area is mainly due to its establishment strong branding and it is now able to use this area of stable profitability to subsidize the domestic Cola Wars.

Insert the picture of the product lifecycle

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۩ DISTRIBUTION CHANNEL BOTTLER’S AGREEMENTS AND DISTRIBUTION AGREEMENTS

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eparate contracts (‘‘Bottler’s Agreements’’) exist between our Company and each of its bottlers regarding the manufacture and sale of soft drinks. Subject to specified terms and conditions and certain variations, the Bottler’s Agreements generally authorize the bottler to prepare particular designated Company Trademark Beverages, to package the same in particular authorized containers, and to distribute and sell the same in (but generally only in) an identified territory. The bottler is obligated to purchase its entire requirement of concentrates or syrups for the designated Company Trademark Beverages from the Company or Company authorized suppliers. We typically agree to refrain from selling or distributing or from authorizing third parties to sell or distribute the designated Company Trademark Beverages throughout the identified territory in the particular authorized containers; however, we typically reserve for ourselves or our designee the right (1) to prepare and package such beverages in such containers in the territory for sale outside the territory and (2) to prepare, package, distribute and sell such beverages in the territory in any other manner or form.

Territorial restrictions on bottlers vary in some cases in accordance with local law. The Bottler’s Agreements between us and our authorized bottlers in the United States differ in certain respects from those in the other countries in which Company Trademark Beverages are sold. As further discussed below, the principal differences involve the duration of the agreements; the inclusion or exclusion of canned beverage production rights; the inclusion or exclusion of authorizations to manufacture and distribute fountain syrups; in some cases, the degree of flexibility on the part of the Company to determine the pricing of syrups and concentrates; and the extent, if any, of the Company’s obligation to provide marketing support.

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OUTSIDE THE UNITED STATES. The Bottler’s Agreements between us and our authorized bottlers outside the United States generally are of stated duration; subject some cases to possible extensions or renewals of the term of the contract. Generally, these contracts are subject to termination by the Company following the occurrence of certain designated events. These events include defined events of default and certain changes in ownership or control of the bottler.

In certain parts of the world outside the United States, we have not granted comprehensive beverage production rights to the bottlers. In such instances, we or our designees typically sell canned (or in some cases bottled) Company Trademark Beverages to the bottlers for sale and distribution throughout the designated territory under distribution agreements, often on a non-exclusive basis. A majority of the Bottler’s Agreements in force between us and bottlers outside the United States authorize the bottler to manufacture and distribute fountain syrups, usually on a non-exclusive basis. Our Company generally has complete flexibility to determine the price and other terms of sale of the concentrates and syrups we sell to bottlers outside the United States. In some instances, however, we have agreed or may in the future agree with the bottler with respect to concentrate pricing on a prospective basis for specified time periods. Outside the Unite States, in most cases we have no obligation to provide marketing support to the bottlers. Nevertheless, we may, in our discretion, contribute towards bottler expenditures for advertising and marketing. We may also elect to undertake independent or cooperative advertising and marketing activities.

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WITHIN THE UNITED STATES. In the United States, with certain very limited exceptions, the Bottler’s Agreements for Coca-Cola and other cola-flavored beverages have no stated expiration date. Our standard contracts for other soft drink flavors and for noncarbonated beverages are of stated duration, subject to bottler renewal rights. The Bottler’s Agreements in the United States are subject to termination by the Company for nonperformance or upon the occurrence of certain defined events of default which may vary from contract to contract. The so-called ‘‘1987 Contract,’’ described below, is terminable by the Company upon the occurrence of certain events including: • The bottler’s insolvency, dissolution, receivership or the like; • Any disposition by the bottler or any of its subsidiaries of any voting securities of any bottler subsidiary Without the consent of the Company; • Any material breach of any obligation of the bottler under the 1987 Contract; or • Except in the case of certain bottlers, if a person or affiliated group acquires or obtains any right to acquire beneficial ownership of more than 10% of any class or series of voting securities of the bottler without authorization by the Company.

Under the terms of the Bottler’s Agreements, bottlers in the United States are authorized to manufacture and distribute Company Trademark Beverages in bottles and cans. However, these bottlers generally are not authorized to manufacture fountain syrups. Rather, as described above, our Company manufactures and sells fountain syrups to authorized fountain wholesalers (including certain authorized bottlers) and some fountain retailers. These wholesalers in turn sell the syrups or deliver them on our behalf to restaurants and other retailers.

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In the United States, the form of Bottler’s Agreement for cola-flavored soft drinks that covers the largest amount of U.S. volume (the ‘‘1987 Contract’’) gives us complete flexibility to determine the price and other terms of sale of soft drink concentrates and syrups for cola-flavored Company Trademark Beverages (‘‘Coca-Cola Trademark Beverages’’) and other Company Trademark Beverages. In some instances, we have agreed or may in the future agree with the bottler with respect to concentrate pricing on a prospective basis for specified time periods.

Bottlers operating under the 1987 Contract accounted for approximately 88% of our Company’s total United States gallon sales for bottled and canned beverages, excluding direct sales by the Company of juice and juice-drink products and other finished beverages (‘‘U.S. bottle/can gallon sales’’) in 2003.

Certain other forms of U.S. Bottler’s Agreements, entered into prior to 1987, provide for soft drink concentrates or syrups for certain Coca-Cola Trademark Beverages to be priced pursuant to a stated formula. The oldest such form of contract, applicable to bottlers accounting for approximately 1% of U.S. bottle/can gallon sales in 2003, provides for a fixed price for Coca-Cola syrup used in bottles and cans. This price is subject to quarterly adjustments to reflect changes in the quoted price of sugar. Bottlers accounting for the remaining approximately 11% of U.S. bottle/can gallon sales in 2003 have contracts for certain Coca-Cola Trademark Beverages with pricing formulas generally providing for a baseline price. This baseline price may be adjusted periodically by the Company, up to a maximum indexed ceiling price, and is adjusted quarterly based upon changes in certain sugar or sweetener prices, as applicable.

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LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

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

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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 of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month.

Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

• Future Consumption: This route consists of outlets 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.

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• 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.

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.

• 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.

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

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• 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.

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۩ SALES PROMOTION

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Coca-Cola Displays Cherry Coke

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oca Cola North America recently use this case stacker display to highlight cans of both Cherry Coke and Cherry Coke Zero in grocery stores.

The combination of the big can images with the giant cherries conveyed the big cherry taste of the products.

The cans of Cherry Coke and Cherry Coke Zero were well organized on both sides of the display.

A Cherry Coke Spectacular display used in conjunction with this program featured a spinning can to draw attention to the display.

This display was created for Coca Cola North America by Ellie, Inc., (www.ellieinc.net), an O’Fallon, MO-based promotion agency and pointof-purchase display firm.

In today’s competitive environment, having the right product at the right place in the right place at the right time may still not be enough to be successful. Effective communication with the target market is essential for the success of the product and business. Promotion is the activity of the marketing mix designed to inform the marketplace

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about who you are, how good your product is and where they can buy it. Promotion is also used to persuade the customers to try a new product, or buy more of an old product.

The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in its marketing plan. Above the line promotions refers to mainstream media: Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Because most of the target is most likely to be exposed to media such as television, radio and magazines, Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products.

Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples. These activities are an effective way of getting people to give your product a go.

Every age of group like all the products of coca-cola. Now a days it become a household necessary item. In field of marketing many kind of surveys are conducted by Coca-Cola team time to time. This is end & last feedback for any kind of organization. By the specific survey, which was conducted by Coca- Cola organization want to know about the right picture.

This work study provides extensive information about the position of company’s brand in rural area.

VARIABLES Marketing variables Display items

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• Visicoolers Sales Promotion variables • Discount for retailers.

• Scheme for retailers.

To know effectiveness of the marketing strategy & sales promotions in market.

Ensuring the visibility of the product.

• Ensuring the availability of products in outlets.

• Analyzing the effect of scheme.

• Analyzing the effect of discounts.

• Evaluating the competitor’s strength & weakness in rural market.

• Retailer’s expectation from company.

• Focus on villages’.

Focus on availability of products in market. Coca-Cola works on dikega to bikega philosophy. This is the main formula of the marketing straregy of each company. So availability of product in the market is clear. For this reason market developer daily come in market to check their product availability. Focus on availability of products in outlets. There is big difference between the availability of products in market & outlets. CocaCola want that their product displayed in each outlet in market so it is important that the product first available in market after than it put on outlets. (Khatushyamji market).

Focus on visibility of coke product in outlet The aim of Coca-Cola is that its product should be visible for the customers so company gives to retailers racks so many display items. Now days the company is giving visicoolers to retailers for visible their chilled product in market for more 83

sales. More focus in rural area. “The rural market is a significant part of our sales promotional discount scheme which is enabling us retailer’s link with our product”. Herminder Singh chabada (STL) Coca-Cola According to company sources main focus now on rural market. In 2000 the Coca-Cola India spokes women Nantoo Banerjee said that.

“The real market in India is the rural market. If u can crack it, there is tremendous potential.” CCI begin focus on rural areas after 2000 in order to increase volumes. This decision is giving a huge size & potential market to company. It is clear that CCI would have shifted its focus to rural market. “THANDA” GOSE RURAL In early 2002 CCI launched a new advertising campaign for attract more rural consumers. The aids with India leading bollywood star Amir Khan. With movie of lagan. (Thanda Matlab Coca- The tag line of aid is Cola) Regular market vigilance by market developer To know the position of Coke’s product in the market coca- cola appoint some executive those go in market & check availability, visibility of product, take care companies assets, check visicoolers and talk to shopkeeper & take feedback about their product. Distribution of product according locality. Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like railway station bus stand are consider in this category and place which have low selling where company gives small schemes to the shopkeeper. Extra focus on monopoly outlets Outlets which only sales coca-cola product and gives good sale to company, Are consider in this category company gives extra schemes, discount and other gift to these shops and tries to keep them happy and make long relationship. Problem of these kinds of outlets resolve as soon as possible aggressive advertisement.

Coca-cola use the concept of aggressive advertises for sales promotion.

Company introduces different schemes and advertises them with electronic and print media. These advertisements build Brand image and establish awareness. Brand ambassador play an important role. Brand 84

ambassador encourage the today youth to trust their instincts, influence them. Successful advertisement campaigns like “taaza mango , maaza mango” and “ botal mein aam, maaza hain naam”. Halp lot to make market image of maaza. Coca-cola advertising cam gains Jo Chaho Ho Jaye. & Life Ho To Asi were very popular & had entered in youth vocabulary. Matlab In 2002 company launched the campaign “Thanda Coca-Cola” which is sky rocketed the brand to make.Coca- Cola lunched so many advertising for rural market capture Amir soniyoThanda piyo Khan’s aid “Oye Social festivals in rural areas. 27 Coca-Cola Company time to time introduced rural social festival. In 2007 company launched JALASA programmed in so many rural areas like RINGUS, RENWAL, CHOMU, PHULERA, for take attention of the consumers. Focus on villages’ now coca-cola considers more on villages after semi urban areas. Company making now days strategies for villages because they know India leave in Villages.

Outlet at petrol pumps- Convenience outlets selling top up items, may be open till late at nights or 24 hrs. Travel & convenience kiosks- Permanent kiosks within the airports/ railways/ bus stand premises (inside or outside) selling only beverages or a food & beverage kiosks.

SALES PROMOTION tools are used by most organization including manufactures, distributors, traders, non profit instructions & retailers etc.

Today many customers packaged goods company’s sales promotion

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accounts for 75% or more of all marketing expenditure. Sales promotion 12% annually, compared with advertising increase of only 7.7%. SALES PROMOTION IS BASICALLY in 3 FORMS. Consumer promotion:Targeted final buyers. Trade promotion: - Targeted retailers & wholesalers.

Sales force Promotion: - Targeted the numbers of sales force COCACOLA USING WHY SALES PROMOTION (Objective of sales promotion) Sales promotion is main tool for increasing sales so flowing causes for adopting sales promotion.

• • • • • • • • • • • • • • •

To stimulate the demand by popularizing product To face competition effectively.

To keep the memory of products in mind of consumers.

To supplement the personal selling & advertising.

To establish the large market segment.

To capture more market share from competitor.

To maintain the market.

To attract distributors towards our brands.

To attract more consumers by gave them free gifts on products.

To include middle man wholesaler & retailers to purchase goods in large quantity by offer them more facilities on higher trade more cash discount, bonus etc.

To arrest seasonal decline in sales.

To assist sales man in increasing sales, achieving sales target & salesman’s activities for problem sales.

To help of new products this introduced in market recently.

To introduce such sales promotion methods as to adopt aggressive selling and their by increase sales.

To stimulate market research.

METHODS OF SALES PROMOTION 86

Various types of sales promotion methods are being used in organization in Coca-Cola these following methods are using in sales promotion technique. Consumer sales promotion methods. Traders, wholesalers, retailer’s sales promotion methods. Sales force promotion methods.

Consumer sales promotion methods:- Consumer sales promotion methods are those methods which are directed at consumers to induce them to buy the company’s product the are some consumer sales promotion devices.

• Free trails. • Samples • Premium • Bonus stamps • Cash refund offer Trade sales promotion method: Trade sales promotion is an incentive given to middle man to buy Goods in large quaint form the producer or manufacturer. The main sales promotion methods are such as: • Discount • Display and advertising allowance • Buy-back allowances • Store demonstration free goods • free tours etc. 3.Sales promotion method: Sales promotion method is those methods which intended to motivate the sales force to increase sales. These methods 40 support a sales man to perform his job more effectively and sincerely. • Bonus to sales force Sales force contests • Sales meeting convention and conferences Promotion strategies A promotion strategy is an important element of market strategy. A key ingredient in marketing campaigns consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or trade. Co-operate objective Marketing objective Marketing Strategy Promotion Production Advertising Pricing Sales promotion Distribution Personal selling Publicity

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۩ MARKETING MIX

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he marketing mix is probably the most crucial stage of the marketing planning process. This is where the marketing tactics for each product are determined. The marketing mix refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a business’s marketing strategy. In this step of the marketing planning process, marketing mix must be designed to satisfy the wants of target markets and achieve the marketing objectives. The most successful businesses have continually monitored and changed their marketing mix due to respective internal and external factors and have monitored the external business environment in order to maximize their marketing mix components.

Factors Influencing Consumer Choice When making decisions on products a business must look at factors that influence consumer choice such as psychological factors, Sociocultural factors, Economic factors and Government Factors.

Psychological Factors: such as motivation, perception, lifestyle, personality and self concept, learning, and attitudes influence the consumer’s behavior towards a product and Coca Cola has addressed this issue by introducing Diet Coke to satisfy different lifestyles.

Sociocultural factors: such as culture, subculture, socio-economic status, family and reference groups influence the consumer’s behavior towards a product.

Economic factors: such as Disposable income and discretionary income.

Coca Cola has addressed this side of the influence by maintaining a low price on the price of its products.

Government Factors: such as new regulations, inflation, interest rates all influence consumer spending and choice.

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Product: Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service.

Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives.

Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product.

Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products.

Positioning Once a business has decided which segments of the market it will compete in, developed a clear picture of its target market and defined its product, the positioning strategy can be developed. Positioning is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Coca Cola and Franklins both make soft drinks; although Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning helps customers understand what is unique about the products when compared with the competition. Coca Cola plan to further create positions that will give their products the greatest advantage in their target markets. Coca Cola has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Most people create an image of a product by comparing it to another product, thus evident through the famous battles between Coca-Cola and Pepsi products.

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Branding It is often hard to say exactly why we buy one company’s product over another. Companies such as Nike and Adidas spend large amounts of money trying to win consumers away from their competitors who make products that are very similar. The popularity of the brand is often the deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in world wide recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population and is the most widely recognized word after "OK". Coca Cola’s red and white colors and special writing are all examples of world-wide trademarks.

There are a number of branding strategies: Generic brand strategy, Individual brand strategy, Family brand strategy, Manufacturer’s brand strategy, Private brand strategy and Hybrid brand strategy. Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they maybe presented as different lines they operate under the name of Coca Cola.

Packaging Packaging, which is not as highly perceived by businesses, is still an important factor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers; it promotes the product and distinguishes it from the competition. Packaging can allow the business to design promotional schemes, which can generate extra revenue and advertisements. CocaCola has benefited from packaging the product with incentives and endorsements on the labeling as a promotional strategy to increase its volume of sales and revenue.

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Price: Price is a very important part of the marketing mix as it can effect both the supply and demand for Coca Cola. The price of Coca Cola’s products is one of the most important factors in a customer’s decision to buy. Price will often be the difference that will push a customer to buy our product over another, as long as most things are fairly similar. For this reason pricing policies need to be designed with consumers and external influences in mind, in order to effectively achieve a stable balance between sales and covering the production costs.

Price strategies are important to Coca Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with a good level of profit. Long before a sale was ever made Coca Cola had developed a forecast of consumer demand at different prices which inevitably determined whether or not the product came on the market, as well as the allocation of adequate money and resources to produce promote and distribute the product.

Pricing Strategies And Tactics The pricing Strategy a business will use will have to focus on achieving the marketing plan’s objectives and support the positioning of the product, and take external factors such as economic conditions and competitors in to account. There are 5 strategies available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a market share. It’s product penetrated the marketplace. Once customer loyalty is established as seen with Coca Cola it is then able to slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Cola and Pepsi products as each company competes for customer recognition and satisfaction. Till now it appears as if Coke has come up on top, although in order to gain long term profits Coke had to sacrifise short term profits where in some cases it either went under of just broke even, but as seen it has been all for the best.

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Pricing Methods Good pricing decisions are based on an analysis of what target customers expect to pay, and what they perceive as good quality. If the price is too high, consumers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business.

Pricing methods include: Cost based Pricing, Market based pricing and Competition based Pricing. Over the years Coca has lost ground here in it’s pricing but has regained it’s strength as it employed the Competitionbased pricing method which allowed it to compete more effectively in the soft drink market. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader.

The business will tend to have a larger market share, loyal customers and some technological edge, thus the case currently with Coke, it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the Coca Cola. Survival in the market place, own 60 % of market share by 2007, increase further awareness of product and a return on 20% on capital employed for August 2007.

Promotion: In today’s competitive environment , having the right product at the right place in the right place at the right time may still not be enough to be successful. Effective communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good your product is and where they can buy it. Promotion is also used to persuade the customers to try a new product, or buy more of an old product.

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The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in its marketing plan.

Above the line promotions refers to mainstream media:Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Because most of the target is most likely to be exposed to media such as television, radio and magazines, Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples. These activities are an effective way of getting people to give your product a go.

Place and Distribution: The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market.The distribution of products starts with the producer and ends with the consumer.

One key element of the “Place/Distribution” aspect is the respective distribution channels that Coca Cola has elected to transport and sell its product.

Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include: • How far away the customers are; • The type of product being transported; • The lead times required; and; • The costs associated with transport;

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There are four types of distribution strategies that Coca Cola could have chosen from, these are: intensive, selective, exclusive and direct distribution. It is apparent from the popularity of the Coca Cola’s product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coca Cola products.

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CHAPTER - IV

RESEARCH METHODOLOGY ۩ RESEARCH OBJECTIVE ۩ ۩

RESEARCH ANALYSIS RESEARCH TESTS

95

۩ RESEARCH OBJECTIVE OBJECTIVE OF SUTDY



MAIN OBJECTIVE IS TO COMPARE THE DIFFERENT PRODUCTS OF COCA-COLA WITH RESPECT TO DISTRIBUTION CHANNEL AND SALES PROMOTION.



TO KNOW WHICH PRODUCT OF COCA-COLA IS BEING SELL MORE IN MARKET.



ON WHICH PRODUCT OF COCA-COLA MORE EXPENSES ARE MADE FOR SALES PROMOTION.



WHICH PRODUCT OF COCA-COLA IS PROMOTED MORE IN MARKET?



ON TELEVISION WHICH PRODUCT OF COCA-COLA IS SHOWN MORE DURING THE COMMERCIAL BREAKS?



WHICH PRODUCT OF COCA-COLA IS MORE IN DEMAND ACCORDING TO DISTRIBUTERS?



USING CELEBRITIES IN ADVERTISING THE PRODUCTS OF COCA-COLA CAN INCREASE THE DEMAND OF THE PRODUCT OR NOT.

96

• SOURCES OF DATA

(1) Secondary Data Sources form where secondary data had been collected are,     

Websites of the Company Magazines Newspapers Other Websites General idea from the managers of the Malls and Owner’s of the Grocery shops regarding the sales of brands under study.

(Details are mentioned in annexure)

(2) Primary Data Primary data was collected from the distributors and general public by interviewing them and filling the questionnaire.

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• QUESTIONNAIRE  The questionnaire was structured in form and undisguised.  The questions were framed in close – ended form so as to get similar answers and analysis becomes easy.  It was seen that the language of the questions framed was simple and easy so as to avoid confusions and to attain more accuracy in collecting data.  It was taken care that questions were not framed in a way that would go more personal to the person.  It was seen that the general question were asked first and personal questions were asked last.  The number of questions in the questionnaire was kept less and most of them contain supplementary options.

 SAMPLING METHOD I adopted simple random sampling method to select sample for the survey.

 SAMPLE SIZE Among the different methods of selecting sample size like Adhoc and Statistical, I have adopted the Adhoc method and decided the sample size to be 100 for survey.( 25 for distributors and 75 for general public).

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۩ RESEARCH ANALYSIS PRODUCT THAT SELL MORE IN MARKET ACCORDING TO DISTRIBUTORS 9

SELL IN MARKET

8 7

8

6 5

6

4

5

3 3

2 1

2

1

0 THUMSUP

SPRITE

COKE

MAAZA

FANTA

LIMCA

PRODUCTS

99

PRODUCT THAT REQURES MORE SALES PROMOTION ACCORDING TO DISTRIBUTORS

8

SELL IN MARKET

7

7

6 5 4

5 4

3

4 3

2 1

2

0 THUMSUP

SPRITE

COKE

MAAZA

FANTA

LIMCA

PRODUCTS

100

WHICH MARKETING ACTIVITY CAN INCREASE SALES ACCORDING TO DISTRIBUTORS

16 14

NUMBERS

12

14

10 8 6

7

4 4

2 0 PUBLICITY

PERSONAL SELLING

ADVERTISEMENT

MARKETING ACTIVITY

101

WILL SALES PROMOTION CAN INCREASE SALES ACCORDING TO DISTRIBUTORS

18 16

NUMBERS

14

17

12 10 8 6 4

5

2

3

0 YES

NO

CAN'T SAY

CATEGORY

102

DO LOCAL BRAND CAN AFFECT SALES OF COCACOLA ACCORDING TO DISTRIBUTORS

14 12

NUMBERS

10

13

8

8

6 4

4

2 0 YES

NO

CAN'T SAY

CATEGORY

103

8

4

0 QUALITY SOLD

2

QUANTITY SOLD

2

CUSTOMER SATISFACTION

4

DEMAND

6

PROFIT

RANK 1 GIVEN

RANK 1 PARAMETERS GIVEN BY DISTRIBUTORS

12

10

10

7

2

PARAMETERS

104

PRODUCT THAT PREFERED MORE BY GENERAL PUBLIC AGE GROUP

12 35

13

20-25 26-30 31-35 ABOVE 35

15

105

PREFERED PRODUCT OF COCA-COLA BY GENERAL PUBLIC

7

THUMS-UP

10

30

SPRITE COKE MAAZA FANTA

15 5

8

LIMCA

106

RANK 1 PARAMETERS GIVEN BY GENERAL PUBLIC

25

RANK1 GIVEN

20 15 10 25 22

5 0

TASTE

QUALITY

18

BRAND

10 PRICE

PARAMETERS

107

EDUCATION SCHOOLING GRADUATION POST GRADUATION 20

25

30

108

IS PRODUCTS OF COCA-COLA ARE OVER PRICED ACCORDING TO GENERAL PUBLIC

42

45 40 35

27

NUMBERS

30 25 20 15

6

10 5 0

YES

NO

CAN'T SAY

CATEGORY

109

DO ADVERTISEMENT CAN INCREASE SALES ACCORDING TO GENERAL PUBLIC

NUMBERS

47 50 45 40 35 30 25 20 15 10 5 0

26

2

YES

NO

CAN'T SAY

CATEGORY

110

WHICH ADVERTISEMENT IS LIKED MUCH ACCORDING TO GENERAL PUBLIC 25

NUMBERS

20 15

20

10

15

17

10

5

8

5 0 THUMSUP

SPRITE

COKE

MAAZA

FANTA

LIMCA

PRODUCTS

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۩ RESEARCH TESTS TESTING OF HYPOTHESIS USING CHI-SQUARE TEST 1) Null Hypothesis (H0): Sales of Thums up and Maaza can be increase by doing advertisement.

2) Alternative Hypothesis (H1) : Sales of Thums up and Maaza can not be increase by doing advertisement.

OBSERVED FREQUENCY TABLE PRODUCTS ADVERTISEMENT PUBLICITY

TOTAL

THUMS UP 8

6

14

MAAZA

6

5

11

TOTAL

14

11

25

112

CHI-SQUARE TABLE

SR NO.

OBSERVED FREQUENCY OI

EXPECTED FREQUENCY

(OI-EI)

(OI-EI)2/EI

EI

1

8

7.84

0.16

0.003

2

6

6.16

-0.16

0.004

3

6

6.16

-0.16

0.004

4

5

4.84

0.16

0.005

TOTAL

0.016

DEGREE OF FREEDOM: (C-1) (R-1) = 1 5% LEVEL OF SIGNIFICANT: Table value = 3.84 Statistical conclusion: Table value is MORE then the calculated value i.e 0.016 so null hypothesis is selected.

Conclusion: Here null hypothesis is accepted that means Sales of Thums up and Maaza can be increase by doing advertisement.

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TESTING OF HYPOTHESIS USING Z -TEST 1) Null Hypothesis (H0): 30 % of people prefer Thums up.

2) Alternative Hypothesis (H1) : 30 % of people do not prefer Thums up.

3) Sample size : 75 people.

4) Level of significance: 2% P = 0.30 and q = 0.70 Observed sample proportion ( r ) = 30/75 = 0.4

z=r–p

The test statistic

√pxq n =

0.4 – 0.3 √0.3x0.7 75

= 0.1 0.05 = 2 R:│z│≥ 2.326 Conclusion: The observed value of z is 2 which is in the acceptance region & as such H0 is accepted.

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CHAPTER – V

PRODUCT ANALYSIS WITH THE HELP OF BCG MATRIX

115

INTRODUCTION TO BCG MATRIX

T

he BCG matrix is based on the product life cycle theory that can be used to determine what priorities should be given to a business unit. This can be explaining with the help of following FOUR fictitious business symbols.

ď ś STARS :- Stars are high growth business competing in market where they are relatively strong compared with the competition. They have a high point shares and are the ideal businesses. ď ś CASH :- Cash cows are low-growth business with a relatively high point shares. These businesses were stars but now have lost their attractiveness.

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 QUESTION MARK :- Question marks are businesses with low point share but which may have a high growth rate. This suggests that they have potential but may require huge ever, a competing force extraordinary effort in order to grow point share.  DOGS :- The term dog refer to businesses that have low relative share and low expected growth rate. Dogs may generate enough points to sustain but they are rarely, if ever, a competing force.

NOW ONE BY ONE POSITION OF EVERY PRODUCT OF COCA-COLA WILL BE KNOWN WITH THE HELP OF BCG MATRIX. MORE OVER THIS POSITION HAS BEEN DECIDED ON THE BASIS OF THE SURVEY WHICH HAS BEEN CONDUCTED AND RESULT OF WHICH IS ALSO GIVEN IN CHAPTER – IV.

117

POSITION OF THUMS-UP

118

POSITION OF MAAZA

119

POSITION OF LIMCA

120

POSITION OF COCA-COLA

121

POSITION OF SPRITE

122

POSITION OF FANTA

123

CHAPTER – VI

SWOT ANALYSIS

124

S

WOT stands for Strengths Weakness Opportunities Threats.

SWOT analysis is a technique much used in much general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist.

Strengths: Coca-Cola has been a complex part of world culture for a very long time.

The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995).

Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers.

Weaknesses: Weaknesses for any business need to be both minimised and monitored in order to effectively achieve productivity and efficiency in their business’s activities, Coke is no exception. Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for 125

about 35% of Coke's volume and none of these markets are performing to expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also has got sugar by which continuous drinking of CocaCola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years.

Opportunities: Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse area.

Threats: Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the

126

market. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow Moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence.

127

CHAPTER – VII

SOCIAL RESPONSIBILITY

128

coca-cola in India

C

oca-Cola, the corporation nourishing the global community with the world’s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nation’s top soft-drink brand and bottling network. It’s no wonder our brands have assumed an iconic status in the minds of the world’s consumers.

A Healthy Growth to The Indian Economy Ever since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems, and marketing channels.

Coca-Cola India is among the country’s top international investors, having invested more than US$ 1 billion in India in the first decade, and further pledged another US$100 million in 2003 for its operations.

A Pure Commitment to The Indian Economy The Company has shaken up the Indian carbonated drinks market greatly, giving consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and nutrition needs. It has also been instrumental

129

in giving an exponential growth to the country’s job listings.

Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution system.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufacture a range of products for the Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the country’s remotest areas.

These are only some of the facts that speak about our commitment to the growth of the Indian Economy.

Our promise The Coca-Cola Company believes our business has always been based on the trust consumers everywhere place in us-trust that is earned by what we do as a corporate citizen and by our ability to live our values as a commercial enterprise.

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There is much in our world to celebrate, refresh, strengthen and protect.

Through our actions as local citizens, we strive every day to Refresh the marketplace Enrich the workplace Preserve the environment Strengthen our communities At the heart of our business is the trust consumers place in us. They rightly expect that we are managing our business according to sound ethical principles, that we are enhancing the health of our communities, and that we are using natural resources responsibly.

Charter - Our Four Guiding Principles of Citizenship Refresh the marketplaces we will adhere to the highest ethical standards, knowing that the quality of our products, the integrity of our brands and the dedication of our people build trust and strengthen relationships.

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We will serve the people who enjoy our brands through innovation, superb customer service, and respect for the unique customs and cultures in the communities where we do business.

Enrich the workplace We will treat each other with dignity, fairness and respect.

We will foster an inclusive environment that encourages all employees to develop and perform to their fullest potential, consistent with a commitment to human rights in our workplace.

The Coca-Cola workplace will be a place where everyone's ideas and contributions are valued, and where responsibility and accountability are encouraged and rewarded.

Preserve the environment Our approach to environmental issues is guided by a simple principle: We will conduct our business in ways that protect, preserve and enhance the environment.

The Coca-Cola EKO System translates this principle into action by establishing a framework for successfully managing our environmental performance worldwide.

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Strengthen the community We will contribute our time, expertise and resources to help develop sustainable communities in partnership with local leaders.

We will seek to improve the quality of life through locally-relevant initiatives wherever we do business.

WATER MANAGEMENT Water Conservation Jal Tarang- a Festival to celebrate Water & Culture Coca-Cola India Collaborates with UN-HABITAT to Improve Access to Water & Sanitation in India & Nepal Kolkata Mayor dedicates Rain Water Harvesting System, launches a film on Water Conservation Coca-Cola & UN- Habitat to set up 16 Rain Water Harvesting Projects in Madhya Pradesh Spreading Awareness On Water Conservation At Educational Institutions Coca-Cola Employees Spearhead Mass Awareness Drive On Water Conservation & PET Recycling On Radio Mirchi Coca-Cola India dedicates Roof-Top Rain Water Harvesting Project in Jaipur Think Green, Go Green Every Drop Counts - International Water Conference, 2007

133

Statement from Coca-Cola India on the Assessment of Water Resource Management Practices by TERI World Water Day Celebrations-South Region Coca-Cola launched two Rain Water Projects launched in Delhi Coca-Cola launched two Rain Water Projects launched in Delhi Mayor of Kolkata dedicates Rain Water Harvesting System, launches a film on Water Conservation Coca-Cola launches Rain Water Harvesting Projects in Gurgaon Central Region Celebrates World Water Day Coca-Cola India installs Rain Water Harvesting Structure in Jamshedpur World Water Day Celebrations-South Region Coca-Cola celebrates World Water Day with School Children World Water Day Celebrations!

Coca-Cola India dedicates three Rain Water Harvesting Projects to the Community in Varanasi Coca-Cola Launches Eight New Rain Water Harvesting Structures Three Rain Water Harvesting Projects dedicated to the Community Coca-Cola India Celebrates World Water Day Coca-Cola India spearheads "Jaladhaare Karavan" Coca-Cola Foundation supports ’Watershed Development’ Projects in 134

collaboration with CII & ICRISAT Cola-Cola India wins the Bhadigari award from the Delhi government for its efforts in community development Coca-Cola india dedicates five new rain water harvesting projects to the community Rain Water Harvesting in Thar Desert Area with Jal Bhagirathi Foundation Rain Water Harvesting in Atmakuru - Andhra Pradesh Rain Water Harvesting in Kerala & Alleviating Water Shortage problem Rain Water Harvesting in Kaladera - Jaipur Rajasthan Minister Prof. Sanwar Lal Jat dedicates Sarai Bawari to the community Coca-Cola organizes a seminar on "Rainwater Harvesting: SocioEconomic Benefits of Creating Water Security" Catching Water where it Falls Government of Rajasthan invites Division President to head work group on Water Conservation Rain Water Harvesting - Select projects with Delhi Govt s. Bhagidari Scheme

135

Citizenship in action Preserving Our Environment Coca-Cola Wins Another Gold Award For Its Citizenship Efforts Coca-Cola Joins Hands To Help The Flood Affected In Bihar Central Region Celebrates World Water Day

Education Coca-Cola Restores Education & Welfare to the Children in Kashmir Valley Coca-Cola India installs Rain Water Harvesting Structure in Jamshedpur Coca-Cola Constructs A New School For Tsunami Affected In Sri Lanka Health Warangal Meet Ends, Witnesses Active Participation from Rural Youth Coca-Cola India supports Perfect Health Mela for 5th consecutive year towards its commitment to Health and Wellness Over 750 participants of Thums Up Rural Games hit the grounds of Gadag, Karnataka Water Conservation Jal Tarang- a Festival to celebrate Water & Culture

136

Coca-Cola India Collaborates with UN-HABITAT to Improve Access to Water & Sanitation in India & Nepal Kolkata Mayor dedicates Rain Water Harvesting System, launches a film on Water Conservation And More....

Coca-Cola Joins Hands To Help The Flood Affected In Bihar Coca-Cola India announces the launch of Thums Up Rural Games CIFA - Thums Up Rural Games, 2007 Connect with the Global Virtual World- launch an interactive website

137

CHAPTER – VIII

CONCLUSION

138

F

rom the survey done on distribution channel and sales promotion it was concluded that according to distributors among all the products of coca-cola thums-up is more in demand.

More over when the question was asked that which product of coca-cola requires more sales promotion then the answer came was coke.

Also 17out of 25 agreed with the statement that sales promotion can increase sales.

When question was asked that which marketing activity can increase sales then the answer came that advertising can help more in increasing the sales of products of coca-cola.

When the question was asked that out of different parameters which is the most important parameter for them that affects their business the most then the answer came that for them quality sold is most important parameter.

When the question asked to general public that which is their preferred soft drink among different products of coca-cola then most of them liked thums-up.

Again when they were asked to give rank 1 parameter to the products according to their preference then most of them have given rank 1 to taste of different products of coca-cola.

When they were asked that whether they feel that the price of products of coca-cola are over priced or not then 42 out of 75 agreed that price are more then it should be.

139

CHAPTER – IX

BIBLIOGRAPHY

140

 BOOKS a. Philip Kotler; “Marketing Management”; Prentice-Hall India (PHI); 11th Edition; Pg. No. (418-432). b. Philip Kotler, Gary Armstrong; “Principle of Marketing”; PrenticeHall India (PHI); 10th Edition; Pg. No. (141-164). c. G. C. Beri; “Modern Marketing Research”; 3rd Edition; Pg. No. (4346).  MAGAZINES 1.

2.

3.

4.

Business Today Outlook Insight Advance Edge

 NEWSPAPERS 1. The Times of India 2. The Economics Times 3. Business Times 

WEBSITES www.google.com www.cokeiindia.com www.coca-colaindia.com www.oligopolywatch.com www.superbrand.com

141

CHAPTER – X

ANNEXURES

142

QUESTIONNAIRE FOR DISTRIBUTERS GENERAL INFORMATION 1. According to you which product of COCA-COLA requires more sales promotion?

Thums up

Sprite

Coke

Maaza

Fanta

Limca

2. According to you which product of COCA-COLA is sale more in market / demand more in market?

Thums up

Sprite

Coke

Maaza

Fanta

Limca

3. Do you think by doing sales promotion it will increase the sells of any product of COCA-COLA? Yes

No

Can’t say

4. Do you think if COCA-COLA Company provides any schemes to distributors then it will affect the sell of any product of COCACOLA? Yes

No

Can’t say

143

5. Being distributor give parameter to the following according to your preferences / importance.

Profit

Demand

Quantity sold

Quality sold

Customer satisfaction

6. According to you which marketing activity will increase the demand of product of COCA-COLA? Publicity

Personal selling

Advertisement

7. Do you think local brands of soft drink can affect the demand of COCA-COLA? Yes

No

Can’t say

PERSONAL INFORMATION Name: -----------------------------------------------------------------------Bussiness experience: Quantity of selling during one month: -

144

QUESTIONNAIRE FOR GENERAL PUBLIC GENERAL INFORMATION 1. Give three names of COCA-COLA products that comes to your mind first.

A)______________ B)_____________ C)________________ 2. Which product of COCA-COLA do you prefer more?

Thums up

Sprite

Coke

Maaza

Fanta

Limca

3. Give parameter to the following according to your likings / preference.

Taste

Quality

Brand

Price

4. Do you think product of COCA-COLA having good market?

Yes

No

Can’t say

5. Do you think product of COCA-COLA are over priced?

Yes

No

Can’t say

145

6. Do you think product of COCA-COLA are good for health?

Yes

No

Can’t say

7. Do you think using celebrities for advertisement for any product of COCA-COLA can affect the sale?

Yes

No

Can’t say

8. Which advertisement of the following product of COCA-COLA you like the most?

Thums up

Sprite

Coke

Maaza

Fanta

Limca

PERSONAL INFORMATION Name: -----------------------------------------------------------------------Age: -

Education:-

20 to 25 Above 35

26 to 30

Schooling

Graduation

Yearly income:-

Less than 50000 100001 to 150000

31 to 35 Post Graduation 50001 to 100000 Above 150000 146