AN INTERNSHIP REPORT

MARKET STUDY ON 300ML SKU OF

COCA-COLA

Submitted By:

PARITOSH SACHDEVA

M090700054

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Acknowledgement

I would like to express my gratitude to the management of KANDHARI

BEVERAGES Pvt. Ltd. (Coca-Cola), Chandigarh for giving me the opportunity to

undertake my summer internship program in the company which gave me an insight

into the working of the company and the FMCG and BEVERAGES sector as a

whole.

I owe my sincere thanks and heartfelt gratitude to Mr. Gurdeep Saggu (DGM),

Mr. Amit (A.S.M), and Ms. Preeti who gave time to share their thoughtful criticism

and suggestions to improve the work. Their contribution gave me valuable insights

into this project and immense knowledge of the area.

I am thankful to Mr. S.R TANEJA (DEAN-MBA, CHITKARA UNIVERSITY) for his

help and guidance at every stage to help me complete this dissertation on time

..

Last but not the least, I would also like to thank my institute Chitkara Business

School, Chitkara University for inculcating in me the management knowledge and

skills and then providing me with the best opportunity to apply and update my

knowledge and skills through summer internship in such an esteemed organization

Paritosh Sachdeva

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Table of Contents

Executive Summary

SECTION - A

Chapter 1: Introduction

Chapter 2: Beverage industry

Chapter 3: Brands of Coca-Cola

Chapter 4: BCG Matrix, Porters five forces

Chapter 5: Competitor and Financial analysis

SECTION - B

Chapter 6: Methodology

Chapter 7: Research, Key Findings and Analysis

Chapter 8: Conclusion and Recommendation

References & Bibliography

Annexure

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EXECUTIVE SUMMARY

The scope of the project is to study the 300ml Sku of Coca-Cola in Chandigarh.

From the last three months or so our group is in the process of a continuous

research on marketing functions and strategies adopted by ‘Coca Cola’. These

marketing functions mainly include the marketing mix i-e, Product Strategy and

OPPORTUNITY MAPPING as well as other market strategies.

By looking into this study, the company will be able to take corrective measures to

avoid the loopholes provided by the company in earlier period as a result the market

share of the company will increase.

Moreover the project also discusses the analysis of competition, market growth and

trend, opportunity analysis and strategies for creating competitive advantage

adopted by ‘Coca Cola’.

We will like to add that the project will provide the readers and listeners very high

profile information about the marketing strategies as a whole and also about the

Coca Cola Company. Therefore the company is the market leader among all

beverages in 21st century.

In the end we hope that the project will result very profitable for the readers and

Coca Cola. Your feedback in the end either critical or substantial will be very highly

appreciated

INTRODUCTION

The Coca-Cola Company exists to benefit and refresh everyone it touches.

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

Atlanta, Georgia on May 8, 1886. Coca-Cola Company is the world’s leading

manufacturer, Marketer and distributor of non-alcoholic beverage concentrates and

syrups, used to produce nearly 400 beverage

brands. The corporate headquarters are in

Atlanta, with local operations in over 200

countries around the world. The Coca-Cola

Company began building its global network in

the 1920s.Coca-Cola system has successfully

applied a formula on a global scale “Provide a

moment of refreshment for small amount of

money a billion times a day”.

When launched Coca-Cola two key ingredients

were cocaine (benzoyl methyl ecgonine) and caffeine. The cocaine was derived from

the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K"

in Kola was replaced with a "C" for marketing purposes Coca-Cola often referred to

simply as Coke (a registered trademark of The Coca-Cola Company in the United

States since March 27, 1944)was invented in May 1886 by Dr. John Stith Pemberton

in Atlanta, Georgia. The name "Coca-Cola" was suggested by Dr. Pemberton's

bookkeeper, Frank Robinson. He penned the name Coca-Cola in the flowing script

that is famous today.

Coca-Cola was first sold at a soda fountain in Jacob's

Pharmacy in Atlanta by Willis Venable. The first sales were at

Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was

initially sold as a patent medicine for five cents a glass at soda

fountains, which were popular in the United States at the time

due to the belief that carbonated water was good for the

health.

Pemberton claimed Coca-Cola cured many diseases, including morphine addiction,

dyspepsia, neurasthenia, headache, and impotence.

Pemberton ran the first advertisement for the beverage on May 29 of the same year

in the Atlanta Journal. The company was formed to sell three main products:

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Type Public(NYSE:KO)

Industry BeverageFounded 1886, USA

Headquarters

Atlanta, Georgia , USA

Area served Worldwide

Key People Muhtar Kent(Chairman and CEO)

Products Coca ColaCarbonated Soft Drinks

WaterOther non alcoholic beverages

Employees 92,400 (October 2009)Website KO.com

Pemberton's French Wine Cola (later known as Coca-Cola), Pemberton's Indian

Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.[The Coca-Cola

formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-

Cola Company in 1892.

In 1892 Candler incorporated a second

company, The Coca-Cola Company (the

current corporation), Coca-Cola was sold in

bottles for the first time on March 12, 1894.

The first Outdoor wall advertisement was

painted in the same year as well in

Cartersville, Georgia. CAN of Coke first

appeared in 1955. On February 7, 2005, the

Coca-Cola Company announced that in the second quarter of 2005 they planned to

launch a Diet Coke product sweetened with the artificial sweetener sucralose, the

same sweetener currently used in Pepsi One. On March 21, 2005, it announced

another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame

and acesulfame potassium. On July 5, 2005, it was revealed that Coca-Cola would

resume operations in Iraq for the first time since the Arab League boycotted the

company in 1968. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola,

and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993.

As of 2004, Coca-Cola held a 60.9% market-share in India.

Coca-Cola was the first commercial sponsor of the Olympic

games, at the 1928 games in Amsterdam, and has been an

Olympics sponsor ever since. Special aluminum bottle

designed exclusively for the Vancouver 2010 Olympic Winter

Games Torch Relay.

This corporate sponsorship included the 1996 Summer

Olympics hosted in Atlanta, which allowed Coca-Cola to

spotlight its hometown.

Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other

competitions organized by FIFA. In fact, one FIFA tournament trophy, the FIFA

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World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called

"FIFA — Coca Cola Cup".

In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion

in annual UK grocery sales

Ingredients

Carbonated water

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

Caffeine

Phosphoric acid v. Caramel (E150d)

Natural flavorings

A Can of Coke (12 fl ounces/355ml) has 39 grams of

carbohydrates (all from sugar, approximately 10

teaspoons), 50 mg of sodium, 0 grams fat, 0 grams

potassium,140calorie.

Formula of natural flavorings

The exact formula of Coca-Cola's natural flavorings (but not its other ingredients

which are listed on the side of the bottle or can) is a trade secret. The original copy

of the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the

Trust Company, was the underwriter for the Coca-Cola Company's initial public

offering in 1919. A popular myth states that only two executives have access to the

formula, with each executive having only half the formula. The truth is that while

Coca-Cola does have a rule restricting access to only two executives, each knows

the entire formula and others, in addition to the prescribed duo, have known the

formulation process.

Logo7

The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank

Mason Robinson, in 1885. Robinson came up with the name and chose the logo's

distinctive cursive script. The typeface used, known as Spencerian script, was

developed in the mid 19th century and was the dominant form of formal handwriting

in the United States during that period.

Robinson also played a significant role in early Coca-Cola advertising. His

promotional suggestions to Pemberton included giving away thousands of free drink

coupons and plastering the city of Atlanta with publicity banners and streetcar signs.

The World’s Most Powerful Brand

Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the

World, estimated its brand value at $70.45 billion .The ranking’s methodology

determined a brand’s valuation on the basis of how much it was likely to earn in the

future, distilling the percentage of revenues that could be credited to the brand, and

assessing the brand’s strength to determine the risk of future earnings forecasts.

Considerations included market leadership, stability, and global reach, incorporating

its ability to cross both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and the creation of

a distinct personality. Its catchy, well-liked slogans (“It’s the real thing” (1942, 1969),

“Things go better with Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling”

(1987), and a 1992 return to “Can’t beat the real thing”) linked that personality to the

core values of each generation and established Coke as the authentic, relevant, and

trusted refreshment of choice across the decades and around the globe.

MANIFESTO FOR GROWTH

MISSION:-

To Refresh the world………..In body, mind and spirit.

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

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

VISION:-

To achieve sustainable growth, we have established a vision with clear goals.

Profit

People

Portfolio

Partners

Planet

Maximizing return to shareowners while being mindful of our overall

responsibilities.

Being a great place to work where people are inspired to be the best they

can be.

Bringing to the world portfolios of beverage brands that anticipate satisfy

peoples; desires and needs.

Nurturing a winning network of partners and building mutual loyalty.

Being a responsible global citizen that makes a difference

VALUES:-

Our values serve as a compass for our actions and describe how we behave in the world.

Leadership

Collaboration

Integrity

Accountability

Passion

Diversity

Quality

The courage to shape a better future

Leverage collective genius

Be real

If it is to be, it's up to me

Committed in heart and mind

As inclusive as our brands

What we do, we do well

Two types of bottlers:

A) FOBO – Franchised owned bottling operations.

B) COBO – Company owned bottling operations.

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Franchised production model

In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370

franchisees by 1910.The company operates a franchised distribution system dating

from 1889 where The Coca-Cola Company only produces syrup concentrate which

is then sold to various bottlers throughout the world who hold an exclusive territory.

The company produces concentrate, which is then sold to licensed Coca-Cola

bottlers throughout the world. The bottlers, who hold territorially exclusive contracts

with the company, produce finished product in cans and bottles from the concentrate

in combination with filtered water and sweeteners. The bottlers then sell, distribute

and merchandise Coca-Cola to retail stores and vending machines. Such bottlers

include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North

America and Western Europe. The Coca-Cola Company also sells concentrate for

soda fountains to major restaurants and food service distributors.

In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or

produce) syrup concentrate which is then sold to various bottlers throughout the

world who hold a Coca-Cola franchise. Coca-Cola bottlers, who hold territorially

exclusive contracts with the company, produce finished product in cans and bottles

from the concentrate in combination with filtered water and sweeteners. The bottlers

then sell, distribute and merchandise the resulting Coca-Cola product to retail stores,

vending machines, restaurants and food service distributors.

One notable exception to this general relationship between TCCC and bottlers is

fountain syrups in the United States, where TCCC bypasses bottlers and is

responsible for the manufacture and sale of fountain syrups directly to authorized

fountain wholesalers and some fountain retailers.

The Coca-Cola Company only produces a syrup concentrate, which it sells to

bottlers throughout the world, who hold Coca-Cola franchises for one or more

geographical areas. The bottlers produce the final drink by mixing the syrup with

filtered water and sweeteners, and then carbonate it before putting it in cans and

bottles, which the bottlers then sell and distribute to retail stores, vending machines,

restaurants and food service distributors.

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The Coca-Cola Company owns minority shares in some of its largest franchises, like

Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company

(CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce almost half

of the volume sold in the world. Independent bottlers are allowed to sweeten the

drink according to local tastes

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling

Company"

Indian History

India is home to one of the most ancient cultures in the world dating back over 5000

years. At the beginning of the twenty-first century, twenty-six different languages

were spoken across India, 30% of the population knew English, and greater than

40% were illiterate. At this time, the nation was in the midst of great transition and

the dichotomy between the old India and the new was stark. Remnants of the caste

system existed alongside the world’s top engineering schools and growing

metropolises as the historically agricultural economy shifted into the services sector.

In the process, India had created the world’s largest middle class, second only to

China.

A British colony since 1769 when the East India Company gained control of all

European trade in the nation, India gained its independence in 1947 under Mahatma

Ghandi and his principles of non-violence and self-reliance. In the decades that

followed, self-reliance was taken to the extreme as many Indians believed that

economic independence was necessary to be truly independent. As a result, the

economy was increasingly regulated and many sectors were restricted to the public

sector. This movement reached its peak in 1977 when the Janta party government

came to power and Coca-Cola was thrown out of the country.

In INDIA

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Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than

reveals its formula to the government and reduces its equity stake as required under

the Foreign Exchange Regulation Act (FERA) which governed the operations of

foreign companies in India. After a 16-year absence, Coca-Cola returned to India in

1993, cementing its presence with a deal that gave Coca-Cola ownership of the

nation's top soft-drink brands and bottling network. Coke’s acquisition of local

Popular Indian brands including Thums Up (the most trusted brand in India21),

Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing,

bottling, and distribution assets but also strong consumer preference. This

combination of local and global brands enabled Coca-Cola to exploit the benefits of

global branding and global trends in tastes while also tapping into traditional

domestic markets.

Leading Indian brands joined the Company's international family of brands, including

Coca- Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In

2000, the company launched the Kinley water brand and in 2001, Shock energy

drink and the powdered concentrate Sunfill hit the market. While The Coca-Cola

Company is a global company with some of the world's most widely brands, the

Coca-Cola business in India, as in each country where it operates, is a local

business.

After a 16-years absence, Coca-Cola returned to India in 1993. The Company's

presence in India was cemented in November that year in a deal that gave Coca-

Cola ownership of the nation's top soft-drink brands and bottling network.

Coca-Cola India has made significant investments to build and continually improve

its business in India, including new production facilities, wastewater treatment plants,

and distribution systems and marketing equipment

During the past decade, the Coca-Cola system has invested more than US$ 1

billion in India

Coca-Cola is one of the country's top international investors by 2003; Coca-Cola

India had won the prestigious Woodruff Cup from among 22 divisions of the

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Company based on three broad parameters of volume, profitability, and quality.

In 2003, Coca-Cola India pledged to invest a further US$100 million in its

operations

In India, we indirectly create employment for more than 125,000 people in

related industries through our vast procurement, supply and distribution system

Virtually all the goods and services required to produce and market Coca-Cola

locally are made in India

The Coca-Cola

system in India

comprises 27

wholly-owned

company-owned

bottling operations

and another 17

franchisee-owned

bottling operations.

A network of 29 contract-packers also manufactures a range of products for the

Company

The complexity of the Indian market is reflected in the distribution fleet, which

includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow

alleyways of Indian cities, and trademarked tricycles and pushcarts.

The complete manufacturing process had a documented quality control and

assurance program including over 400 tests performed throughout the process.

We will collaborate creatively with those who sell our products in the

marketplace, developing relationships built on mutual success, not only from our

brands, but also from our services.

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Ranking: We own 4 of the world’s top 5 non-alcoholic sparkling beverage brands:

Coca-Cola, Diet Coke, Sprite and Fanta.

Beverage industry in India; a brief insight:-

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In India, beverages form an important part of the lives of people. It is an industry, in

which the players constantly innovate, in order to come up with better products to

gain more consumers and satisfy the existing consumers.

The soft-drink industry comprises companies that manufacture nonalcoholic

beverages and carbonated mineral waters or concentrates and syrups for the

manufacture of carbonated beverages.

Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft

drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks.

Cola, lemon and oranges are carbonated drinks while mango drinks come under non

carbonated category.

Cola products account for over 60% of the total soft drink market and include popular

brands such as Coca-Cola, Pepsi, and Thumps up etc. Non-cola segment

constitutes for over 35% of the market.

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BEVERAGES

ALCOHOLIC NON-ALCOHOLIC

CORBONATED

COLA NON-COLA

NON- CORBONATE

D

NON-COLA

Types of

beveragesAlcoholic Non Alcoholic Hot & cold Others

ExamplesBeer, champagne

etc.

Non Alcoholic

wine, apple-cider,

squash,

lemonade, juices,

carbonated

Tea, coffee,

iced tea, cold

coffee

Milk,

soup

THE TYPES OF BEVERAGES (WIKIPEDIA, 2010)

Flavored carbonated beverages, or soft drinks, were developed by apothecaries

And chemists in the early nineteenth century by the addition of flavored

Syrups to fountain dispensed carbonated water. The introduction of proprietary

Flavors began in the late 1880s. Charles H. Hires introduced his root beer extract

In 1876, Vernors’s Ginger Ale was marketed by James Vernor in 1880, R. S.

Lazen by perfected the formula for Dr. Pepper in 1885, and John S. Pemberton

Developed the formula for Coca-Cola in 1886.Brad’s Drink was introduced in 1896

and was later renamed Pepsi-Cola in 1898.

The per capita consumption of soft drinks in India is among the lowest in the world -

5 bottles per annum compared to the 800 bottles per annum in the USA. Delhi

reports highest per capita consumption in the country, 50 bottles per annum. The

consumption of PET bottles is more in the urban areas [75% of total PET bottle

(plastic bottles) consumption] whereas the sales of 200ml bottles were higher in the

rural areas. According to a survey, 91% of the soft drink consumption in India is in

the lower, lower middle and upper middle class section.

Last one century witnessed the entry of various soft drink companies but only few of

them were able to survive. The major among them are COKE and PEPSI. These are

the only two companies that has shared the whole market between them and left a

very small share for the remaining ones. This made the word cola drink synonymous

to the word soft drink.

Entry Barriers in Beverage Market

What are the factors that made the soft drink market a duopoly market?

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The several factors that make it very difficult for the competition to enter the soft

drink market include:

The factors that made the duopoly soft drink market and that make it very difficult for

the competition to enter the soft drink market include:

Network Bottling:

Both Coke and PepsiCo have franchisee agreements with their existing bottler’s who

have rights in a certain geographic area in perpetuity. These agreements prohibit

bottler’s from taking on new competing brands for similar products. Also, with the

recent consolidation among the bottler’s and the backward integration with both

Coke and Pepsi buying significant percent of bottling companies, it is very difficult for

a firm entering to find bottler’s willing to distribute their product.

The other approach to try and build their bottling plants would be very capital-

intensive effort with new efficient plant capital requirements in 2009 being more than

$500 million.

Advertising Spend:

The advertising and marketing spend in the industry is very high by Coke, Pepsi and

their bottler’s. This makes it extremely difficult for an entrant to compete with the

incumbents and gain any visibility.

Brand Image / Loyalty:

Coke and Pepsi have a long history of heavy advertising and this has earned them

huge amount of brand equity and loyal customer’s all over the world. This makes it

virtually impossible for a new entrant to match this scale in this market place.

Fear of Retaliation:

To enter into a market with entrenched rival behemoths like Pepsi and Coke is not

easy as it could lead to price wars which would affect the new comer.

Retailer Shelf Space (Retail Distribution):

Retailers enjoy significant margins of 15-20% on these soft drinks for the shelf space

they offer. These margins are quite significant for their bottom-line. This makes it

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tough for the new entrants to convince retailers to carry/substitute their new products

for Coke and Pepsi.

BUSINESS MODELS OF

COMPANY PROFILE:

Kandhari Beverages Pvt. Ltd

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KANDHARI GROUP was established in 1967 by Late Mr. Teja Singh Kandhari, is

presently a progressive business house in India. The group’s first venture was a

bottling unit as a franchisee of PARLE’s soft drink manufacturing “Gold Spot” under

license from PARLE established at Amritsar in the north Indian state of Punjab.

The Company is engaged in the business of manufacturing, marketing and

distribution of aerated water under franchise agreement with the Coca-Cola

Company, USA. The Company has two mega Greenfield bottling plants for filling soft

drinks located at Village Nabipur, District Fatehagarh Sahib (Punjab) and Village

Katha, Baddi, District Solan (HP). Present gross turnover of the company is approx.

Rs. 190crores. The company has also entered the power sector by setting up a 6.25

MW Wind Mill project having 5 units in the State of Maharashtra.

In 1993, the world renowned soft drink giant - Coca-Cola entered India and bought

over PARLE brand of soft drink products, being one of the star bottlers of PARLE the

Group switched to manufacturing, bottling & marketing of Coke brand of soft drink

products.

The Group companies are fully

conscious of their socio-

economic responsibilities and

have taken up a series of

community development

programs especially the funding

& setting up of Rain harvesting

projects to conserve the scarce

natural resource

ORGANIZATIONAL

STRUCTURE

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CEO (Ashish sethi)

General Manager (Eesh sethi)

Vice-President (Jaspal bhatia)

RED head (Kamal sharma)

Deputy GM (Gurdeep saggu)

SGA Manager (Satinder)

Sales Manager (Pragraj)

Astt Sales Manager

Sr. Sales Executive

Sales Supervisors

Team Leaders

Market developers

Salesman

Marketing Manager (Mohnish)

Market Research

Executive (Preeti)

MISSION :In line with our main partner coca cola we wish to refresh the world and in addition we further aim to create value and make a difference by making our environment a cleaner and a better place to live for our future generation.

VISSION :Our company vision as was established by the founder of our group remains to provide the people that work in the group, be it the owners or the managers a great place to work where people are inspired to be the best they can be and work with quality brands and partners to maximize profit and productivity.

LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

VISIT TO PLANT AND UNDERSTANDING OPERATIONS IN THE PLANT

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Water is received from the 300 ft. tube-well 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.

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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

INGREDIENT DELIVERY

SWEETENER

Team of professionals, work on selecting, auditing, sampling, testing, approving and

then authorizing the sugar suppliers and the list of such authorized suppliers with

approved sugar lots and along with the certificate of analysis are sent across to all

the bottling unit for procurement.

SECRET FORMULA

Created in special concentrate plants, its delivered held

and used under strict controls to maintain its integrity

and security. Each unit of concentrate is especially

identifiable to allow the

“History” of each

component to be

researched at any stage

of production, storage or

use.

CO2 FORMULA

When delivered to the plant, co2 comes in cylinders for easy delivery and storage.

In essence co2 a colorless and odorless gas that provides the “Fizz” for our

beverages.

WATER

Since water is a key component to all our beverages, its quality is critical. And since

public water quality varies around the world, each plant further treats the water it

uses. This means that before water is added to any of the beverages, its rigorously

filtered and cleansed.

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MATERIALS

Ingredients are not the only things delivered to the plant, other materials such as

bottles, cans, labels and packaging are also delivered. Coca cola plants use refillable

glass bottles (RGB) in the production process. When bottles are delivered to the

plant, they are carefully inspected to ensure that they meet the exacting standards.

Once these have passed initial inspection, they move on to be washed and rinsed.

WASHING AND RINSING

To ensure quality, each bottle is washed,

sanitized and rinsed before being filled.

While this sounds simple, the actual steps

can differ by bottling plant. In Coca cola

plants use refillable glass bottles. To ensure

they meet the cleanliness standard of the

company, bottles are first hit with pre-rinse

jets which remove a dirt or debris. They are

then soaked in a high temperature deep

cleaning solution that removes any remaining

dirt and sanitizes them. The bottles then

move to the “Hydro wash” where they are washed again with a deep cleaning

pressure spray.

MIXING AND BLENDING

H2O AND SUGAR

Mixing and blending begins with the steps of mixing pure water with refined sugar,

which creates simple syrup. The syrup is then

measured for the correct amount of sugar.

H2O AND SYRUP

With the syrup nearing its final state, it is

mixed with pure water, creating the finished

carbonated beverage. However, the water

and syrup must be mixed in right ratio.

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This is done by the beverage proportioning equipment. It accurately measures the

correct ratio for each and sends this mixture to the carbonator.

CO2 ADDING

Adding CO2 or carbon dioxide gas, it is the final touch that carbonates the

beverages, CO2 not only give our beverages their effervescent zest but it also adds

to the distinctive and familiar taste everyone has come to expect from our

beverages.

CAPPING

Once filled, bottles are then

capped. Company uses

different bottles, glass

bottles are usually topped

with a metal. Each cap type

then moves through different

parts of the machine which

ensures each cap stays

scratch free and is in the

right position to be precisely

placed on the bottle. The

process actually stops if the

detector doesn’t find a

closure. If the bottle cap isn’t

just right, the beverages can

become flat or be affected in

other ways. If this happens

the bottle is discarded.

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CODING

The bottle is now ready to be coded. Each one of the beverages is marked with a

special code that identifies

specific information about it.

The codes simply identify the

data the beverages was bottled.

These codes identify the date,

time, batch no. and the MRP.

INSPECTION

Company inspects bottles at

many points during the

process. With the refillable

bottles, it happens when they

are first brought into the plant.

They are also inspected after

they are washed and again

after they are filled. Inspectors

look for external bottle

imperfections and make sure each bottle has the right amount of beverages. Even

after filling, the plant samples bottles for analysis in its lab to ensure quality is up to

standards.

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PACKAGING

Once the filled beverages have passed final inspection, they are ready to be

packaged for delivery.

WAREHOUSING AND DELIVERY

In order to make sure the freshest

beverages possible get to you, each

warehouse must efficiently manage

the thousands of beverages cases

produce each day. From the

warehouse, beverages are loaded

onto the distinctive trucks.

27

BRANDS IN INDIA:

28

THUMPS- UP is a leading carbonated soft drink and most trusted

brand in India. Originally introduced in 1977, Thums Up was acquired

by The Coca-Cola Company in 1993.

 Thums Up is known for its strong, fizzy taste and its confident, mature

and uniquely masculine attitude. This brand clearly seeks to separate

the men from the boys.

RGB PET Can

200 ml, 300 ml,

1000 ml

500 ml, 1.5 L,

2 L330 ml

Internationally, FANTA - The 'orange' drink of The Coca-Cola

Company, is seen as one of the favorite drinks since 1940's.

Fanta entered the Indian market in the year 1993.

Over the years Fanta has occupied a strong market place and is

identified as "The Fun Catalyst".

Perceived as a fun youth brand, Fanta stands for its vibrant

color, tempting taste and tingling bubbles that not just uplifts

feelings but also helps free spirit thus encouraging one to indulge in the moment.

This positive imagery is associated with happy, cheerful and special times with

friends.

RGB PET Can

200 ml, 300 ml,500 ml, 1.5 L,

2 L330 ml

29

World's favorite drinks, the most valuable brand and the most recognizable word

across the world after OK.

COCA-COLA returned to India in 1993 and

over the past ten years has captured the

imagination of the nation, building strong

associations with cricket, the thriving cinema

industry, music etc. Coca-Cola has been very

strongly associated with cricket, sponsoring the

World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in

Sharjah in the late nineties. Coca-Cola's advertising campaigns “Jo Chaho Ho Jaye”

and “Life ho to Aisi” were very popular and had entered the youth's vocabulary. In

2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-

rocketed the brand to make it India's favorite soft-drink brand. In 2003, Coke was

available for just Rs. 5 across the country and this pricing initiative together with

improved distribution ensured that all brands in the portfolio grew leaps and bounds.

Coca-Cola had signed on various celebrities including movie stars such as Karishma

Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in

the past and today, its brand ambassadors are Aamir Khan and Hrithik Roshan.

RGB PET Can

200 ml, 300 ml

1000ml

500 ml, 1.5 L,

2 L330 ml

30

Lime n' lemony Limca , the drink that can cast a tangy refreshing spell on anyone,

anywhere. Born in 1971, Limca has been the original thirst choice, of millions of

consumers for over 3 decades. The brand has been displaying healthy volume

growths year on year and Limca continues to be the leading flavors soft drink in the

country.

The sharp fizz and lemony bite combined with the single minded positioning of the

brand as the ultimate refresher has continuously strengthened the brand franchise.

Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca

and walk away a new person.

RGB PET Can

200 ml, 300 ml,

1000 ml

500 ml, 1.5 L,

2 L330 ml

Diet Coke was born in 1982 and quickly became the No. 1 sugar-

free drink in diet-conscious America. Known as Diet Coke in the

U.S., Canada, Australia and Great Britain, and as Coca-Cola light in

other countries, it's now the No. 3 soft drink in the world.

It's the drink for people who want no calories, but plenty of taste. Ad

campaigns around the world for Diet Coke share a playful,

sophisticated and fun-loving attitude.

31

Can

330 ml

Maaza was launched in 1976. Here was a drink

that offered the same real taste of fruit juices and was available throughout the year.

In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the

fruit drink category.

Over the years, brand Maaza has become synonymous with Mango. This has been

the result of such successful campaigns like "Taaza Mango, Maaza Mango" and

"Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome,

natural, fun drink which delivers the real experience of fruit.

The current advertising of Maaza positions it as an enabler of fun friendship

moments between moms and kids as moms trust the brand and the kids love its

taste. The campaign builds on the existing equity of the brand and delivers a relevant

emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza

Maaza".

RGB Tetra pack PET

250 ml 200 ml 1.2 L

32

Worldwide Sprite is ranked as the No. 4 soft

drink &is sold in more than 190 countries.

In India, Sprite was launched in year 1999 & today it has grown to be one of the

fastest growing soft drinks, leading the Clear lime category.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,

Sprite has stood for a straight forward and honest attitude. Its clear crisp refers hing

taste encourages the today's youth to trust their instincts, influence them to be true to

who they are and to obey their thirst.

‘’Orange juice with real orange pulp” with this slogan, Coca cola

launched its minute maid brand of orange juices for the first time in

the country at Hyderabad. Though Coca cola India had in its

portfolio the highly successful Maaza brand in the juices segment

(which it got from the chouhans), this is the first time the company is

introducing some of the products from its own Minute maid portfolio.

The roll out of the naturally refreshing orange beverage with real pulp has been

designed to extend the Company’s market leadership in the juice segment and with

this launch; it is expected to further extend its leadership.

PET

400ML,1.25 L

33

RGB PET Can

300 ml500 ml, 1.5 L,

2 L330 ml

Water is thirst quencher that refreshes, life giving force that washes all the toxins

away. A ritual purifier that cleanses, purifies, transforms. Water the most basic need

of life, the very sustenance of life, a celebration of life itself. The importance of water

can never be understated. Particularly in a nation such as India where water governs

the lives of the millions, be it as part of everyday rituals or as the monsoon which

gives life to the sub-continent.

Kinley water understands the importance and value of this life giving force. Kinley

water thus promises water that is as pure as it is meant to be. Water you can trust to

be truly safe and pure. Kinley water comes with the assurance of safety from the

Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along

with the latest technology to ensure the purity of our product. That's why we go

through rigorous testing procedures at each and every location where Kinley is

produced.

Because we believe that right to pure, safe drinking water is fundamental.

Kinley water Soda

500ml, 1L 1L

34

In the company's journey towards the vision 'leading the beverage revolution in

India', now even Garam matlab Coca-Cola …A hot new launch from Coca-Cola

India

Georgia, quality tea and coffee served from state of the art vending machines is

positioned to tap into the nation’s biggest beverage category.

Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is

available in a range of 7 sizzling flavors, adrak, elaichi, masala and plain tea

cappuccino, mochaccino and regular coffee.

Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata.

Georgia aims to become the consumers preferred choice of hot beverage when he is

on the go; the brand is well on course to achieving its vision.

While Georgia is a mass market offering, Georgia Gold is the premium brand which

caters to the connoisseur. Made from freshly roasted and ground coffee beans,

Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee.

Currently available exclusively at McDonald’s outlets across the country Georgia

Gold has driven coffee sales through the roof. The success of hot beverages from

Georgia Gold has resulted in extension into the cold category, with the introduction

of Ice Tea and Cold Coffee.

35

BCG (BOSTON CONSULTING GROUP) APPROACH

In the BCG approach, a company classifies all its Bus according to the growth share

matrix. Coke is one of the main product lines of the Coca Cola Company. It is the

one which is giving maximum revenues to it by different products in this line. Here

we have classified some of its major products in the BCG matrix on the basis of their

fame and liking of the people.

Stars - Coke, Limca ? – Kinley, Diet coke, Sprite,

Nimbu fresh, Pulpy orange

Cash cows - Fanta,

Thumps up

Dogs - Kinley soda

36

Michael Porters Five Force Analysis

SWOT ANALYSIS

37

BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is very low.

As the coca cola company have developed captive suppliers

& entered into a contract. So the company

is not at the mercyof the suppliers.

BARGAINING POWER OF BUYERS

Is very highdue to the presence

of variousbrands and also

the unorganized sector.This gives the buyer

a wide variety of brands to choose from.

There is additional pressure from buyer

to introduce schemes and reduction in cost.

Threats from Substitutes

Fruit JuicesWater

LemonadeLocal Cola's

Others Cold Beverages

Threats from New Entrants

As there is no report of any new company entering the

Beverage market.As it reqires large amount of capital.

EXISTING COMPETITORS

PepsiParle

R.C Colaothers

SWOT analysis is a basic, straightforward model that provides direction and serves

as a basis for the development of marketing plans. It accomplishes this by assessing

an organizations Strength (what an organization can do) and Weakness (what an

organization can not do) in addition to Opportunities (potential favorable conditions

for an organization) and Threats (potential unfavorable condition for an organization).

SWOT analysis is an important step in planning and its value is often underestimated

despite the simplicity in creation. The role of SWOT analysis is to take the

information from the surrounding and separate it form internal issues (strength and

weaknesses) and external issues (opportunities and threats). SWOT analysis assists

the firm in accomplishing its objectives (strength or opportunity) and overcoming the

obstacles (weakness or threats).

38

STRENGTHWEAKNESSES

OPPORTUNITY

THREATS

Better network – covers whole of the city.

Brand recognition – brand image among customers

Product availability – coca cola has distributors all over

India so the product is regularly supplied to its outlets,

Maximum market share

Brand equity – high equity in the market.

Advertisement policy – CocaCola Company endorsed

with famous personalities like Aamir Khan, Hrithik Roshan,

Akshya Kumar, Priyanka Chopra, Kareena Kapoor and many

more.

Bottling plants – there are 29 bottling plants in India.

These plants are company owned and not franchised like

Pepsi.

Promotional schemes – to activate sales company is

providing Umbrellas, Chairs, Tables, racks, flanges,

visicooler & glasses.

People Reliance on Quality of our Product and Brand.

Knowledge Regarding Competitor

Hardworking Staff & Distributor

Retailers interested in short term gains.

Customer feedback system is not effective.

Product availability – Distributors give products to specific

retailers only when they have limited due to low

production.

CANS are not available.

This year Pepsi giving hard time to coca cola due to strong

relationship with retailers.

Coca-Cola giving less schemes and incentives to its retailers

then Pepsi.

Customer demand is augmented day by day, which is not

satisfied well on time.

Retailers complain for irregular visit of distributors.

Promotional schemes – Schemes are not available to all

retailers.

Greater opportunity in rural areas where coca cola CAN

gain a substantial base.

Company should give more number of schemes.

Improvement in distribution channel.

70% of total population lies in rural area, and market

penetration of soft drink is only 12% hence there is greater

scope of increasing revenue of the coca cola company.

Covering greater institutional areas as younger generation

gets much fascination out of such beverages

Coca cola can create more monopoly outlets by giving

heavy discounts as brand image and quality speaks itself.

Opening new outlets in convent schools, Hotels and multi

activity channels ,as more urbanization

Improvement in distribution channel and in bottling plant.

In the present scenario can come up with more verities in

the fruit drink along with more flavours.

Health conscious people are boycotting

soft drinks.

Threat from Competitors as they give

offers at cheaper rates than coca cola.

Its too seasonal

Preference of juices and energy drinks

over cold drinks

May lose the market share to its

competitor, if they don’t look upon the

demands of retailers who ultimately sell

product to the end customer.

Impulse customer’s bye what ever is in the

offer, so company should give offers

regularly

Retailers are more inclined towards Pepsi

as better services and good relationship

are being made by them.

Lack of adequate new trends.

Future Plan

COMPETITOR ANALYSIS

Coke; 42.90%

Pepsi; 31.20%

Cadbury 14.90%

Others 11%

Market Share in 2006

Coke; 42.80%

Pepsi; 31.10%

Cadbury 15%

Others; 11.10%

Market Share in 2007

39

Effective service

Increase visibility by giving more visi-cooler, boards, hoarding to retailers.

Activation

Highest Quality

Wide range of products is being available

Coke; 42.70%

Pepsi; 30.80%

Cadbury 15.30%

Others, 11.2%

Market Share in 2008

Coke; 41.90%

Pepsi; 29.90%

Cadbury 16.4%

Others; 11.80%

Market Share in 2009

MARKET SHARE (Brands) -------

BRANDS(Top 7) 2009 2008 2007 2006Coke 17.0 17.3 17.2 17.3Pepsi 9.9 10.3 10.7 11.0

Diet Coke 9.9 10.0 10.0 9.8Diet Pepsi 5.6 5.7 6.0 6.0

Dew 6.7 6.8 6.6 6.6Sprite 5.5 5.6 5.6 5.7

Cadbury (dr. pepper) 6.1 6.1 5.9 5.8

Sale of (CSD) Carbonated Soft drinks Cases (in billions)

The volume of the U.S CSD business declined -2.1% in 2009, to a total of 9.4 bil

cases. That is somewhat better than the -3% decline in 2008. The CSD category last

grew in 2004 as shown in FIG. It was down in -2.3% in 2007. With the volume

40

declines of the last five years, the category’s volume is back down to about where it

was in 1996, eliminating years of growth.

Coca-Cola and Pepsi both lost share and volume last year. Coke’s CSD volume was

down -3.9% worse than in 2008 when it was down -3.1%.

PepsiCo was down -5%, worse than its 2008 -4% result. However, Dr Pepper posted

a CSD volume increase of +4.8% after being down -1.3% 2008.

41

2006

2007

2008

2009

0 2000 4000 6000 8000 10000 12000

4357.5

4241.1

4107.6

3947

3167.5

3082.8

2960.4

2815.3

1512.9

1491.3

1471.2

1541.5

1119.9

1104.6

1081.8

1112.3

Sale of Cases of Companies (in mlns)

COKE PEPSI CADBURY OTHERS

Regular Pepsi and Diet Coke moved into virtue tie, each with a 9.9 share. Its shows

Pepsi with about 100,000 more cases than Diet Coke, but that incorporates some

numerical rounding, so they are essentially tied, as 100.000 case difference amounts

to 0.001%. The two big colas- Coke and Pepsi – continued to deteriorate, with coke

down -4% and Pepsi down -5.5%. Pepsi fell below 1bil cases in 2008, for the first

time in decades.

42

Coke Pepsi Diet Coke Diet Pepsi Dew Sprite Cadbury

2006 1760.1 1113.2 998 607 666.3 575.2 588.2

2007 1707.3 1059.8 990 594.9 659.6 553.3 585.9

2008 1664.6 990.9 960.3 550.3 653 536.7 586.1

2009 1598 936.4 936.3 525.5 630.1 515.2 575.9

100300500700900

1100130015001700

Sale of cases of brands(in mlns)

No. o

f cas

es

DIRECT COMPETITOR COMPARISON

COKE (KO) PEPSICOMarket Cap 120.64B 102.49BEmployees 92,800 203,000Rev. Growth 5.40% 4.50%Revenue 30.99B 43.23BGross Margin 64.22% 53.51%EBITDA 9.78B 9.60BOperating Margins 27.57% 18.69%Net Income 6.82B 5.94BEPS 2.930 3.7700PE 17.85 16.86

43

Comparative Balance SheetParticulars Dec-08 Dec-09 Absolute Change % changeCurrent AssetsCash & Cash Equivalents 4701000 6959000 2258000 48.032Short term Investments 278000 2192000 1914000 6.88Net Receivables 3090000 3758000 668000 0.216Inventory 2187000 2354000 167000 0.076Other Current Assets 1920000 2226000 306000 0.159Total Current Assets 17551000 12176000Fixed AssetsLong Term Investments 5779000 6755000 976000 0.168Property Plant & Equipment 8326000 9561000 1235000 0.148Goodwill 4029000 4224000 195000 0.048Intangible Assets 8476000 8604000 128000 0.0151Other Assets 1976000 1733000 -243000 -0.1402Total Assets 40519000 48671000

Current LiabilitiesAccounts Payable 6152000 6921000 796000 0.125Short Term Debt 6531000 6800000 269000 0.0411Other Liabilities 305000Total Current Liabilities 12988000 13721000Long Term Debt 2781000 5059000 2278000 0.8191Other Liabilities 3401000 2965000 436000 0.218Deferred Long Term Liability Charge 877000 1580000 703000 0.801Monthly Interest 547000Total Liabilities 20047000 23872000

Stockholders EquityCommon Stock 880000 880000Retained Earnings 38513000 41537000 3024000 0.0785Treasury Stock -2.4E+07 -25398000Capital Surplus 8537000 7966000 -571000 -0.0716Other Stock hold Equity -2674000 -757000Total 40519000 48671000

44

Trend AnalysisYear Current

Assets% IBT %

Dec-07 12105000 100 7873000 100

Dec-08 12176000 100.59 7439000 94.487

Dec-09 17551000 144.99 8946000 113.63

Ratio Analysis

1. CURRENT RATIO

Current Ratio = Current Assets/ Current Liabilities

December'06 December'07 December'08 December'090

0.2

0.4

0.6

0.8

1

1.2

1.4

0.95 0.92 0.94

1.28

Current Ratio

Time Period

Curr

ent

Rati

o

Current ratio is used to measure the short term financial solvency of a

company ie. whether the company is able to meet its short term liabilities or

not. A current ratio of 2:1 is generally considered satisfactory.

Thus, from the above graph we can interpret that the short term solvency

position of the company is fair.

45

2. QUICK RATIO

Quick Ratio = Liquid Assets/ Current Liabilities

Liquid Assets = Current Assets – stock – Prepaid expenses

December'06 December'-07 December'08 December'090

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0.58 0.580.62

0.95

Quick Ratio

Time Period

Qui

ck R

atio

Quick or Acid Test or Liquid Ratio helps the company to assess its short term

financial position in a better way. It measures the firm's capacity to pay off current

obligations immediately and is more rigorous test of liquidity than the current ratio A

liquid ratio of 1:1 is generally considered acceptable.

Thus, from the above graph we can interpret that the short term liquidity position of

Coke is fairly good but still not satisfactory as the ratio should be 1:1

46

3. NET PROFIT RATIO

Net Profit Ratio = Net Profit/ Net Sales *100

Net Profit= Gross profit + operating & non-op. incomes - Non-op. expenses

December'06 December'07 December'08 December'0924

24.5

25

25.5

26

26.5

27

26.19

25.13

26.4426.56

Operating Ratio

Time Period

Ope

rati

ng P

rofit

Net Profit Ratio indicates net margin earned on sales in terms of percentage. NP

ratio is used to measure the overall profitability and hence it is very useful to

proprietors. This ratio also indicates the firm's capacity to face adverse economic

conditions such as price competition, low demand, etc. Obviously, higher the ratio

the better is the profitability.

Overall the company’s profitability position is reasonably fair.

47

4. OPERATING RATIO

Operating Ratio = Operating Cost/ Net sales * 100

Operating Cost = Cost of Goods Sold + Operating Expenses

December'06 December'07 December'08 December'0924

24.5

25

25.5

26

26.5

27

26.19

25.13

26.4426.56

Operating Ratio

Time Period

Ope

rati

ng P

rofit

Operating Ratio measures the operating cost of the concern in terms of percentage

of sales. Operating ratio shows the operational efficiency of the business. Lower

operating ratio shows higher operating profit and vice versa.

48

PROJECT

MARKET STUDY ON 300ML

SKU

History of Contour bottle design

The equally famous Coca-Cola bottle, called the "contour bottle" within the company,

but known to some as the "hobble skirt" bottle, was created in 1915 by bottle

designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition

among its bottle suppliers to create a new bottle for the beverage that would

distinguish it from other beverage bottles, "a bottle which a person could recognize

even if they felt it in the dark and so shaped that, even if broken, a person could tell

at a glance what it was”.

49

300 ML RGB(RETURNABLE GLASS BOTTLE)

Chapman J. Root, president of the Root Glass Company, turned the project over to

members of his supervisory staff, including company auditor T. Clyde Edwards, plant

Superintendent Alexander Samuelsson, and Earl R. Dean, bottle

designer and supervisor of the bottle molding room. Root and his

subordinates decided to base the bottle's design on one of the

soda's two ingredients, the coca leaf or the kola nut, but were

unaware of what either ingredient looked like. Dean and

Edwards went to the Emeline Fairbanks Memorial Library and

were unable to find any information about coca or kola. Instead,

Dean was inspired by a picture of the gourd-shaped cocoa pod

in the Encyclopedia Britannica. Dean made a rough sketch of the

pod and returned back to the plant to show Mr. Root. He

explained to Root how he could transform the shape of the pod

into a bottle. Chapman Root gave Dean his approval.

Faced with the upcoming scheduled maintenance of the mold-making machinery,

over the next 24 hours Dean sketched out a concept drawing which was approved

by Root the next morning. Dean then proceeded to create a bottle mold and

produced a small number of bottles before the glass-molding machinery was turned

off.

Chapman Root approved the prototype bottle and a design patent was

issued on the bottle in November, 1915. The prototype never made it to

production since its middle diameter was larger than its base, making it

unstable on conveyor belts. Dean resolved this issue by decreasing the

bottle's middle diameter. During the 1916 bottler's convention, Dean's

contour bottle was chosen over other entries and was on the market the

same year. By 1920, the contour bottle became the standard for the Coca-

Cola Company. Today, the contour Coca-Cola bottle is one of the most

recognized packages on the planet..."even in the dark!”

50

Objectives of the study:-

The main objective of this study lies in studying and understanding Market

which comprises of consumers and retailers perception and opinion about the

product 300 ML RGB.

To find out competition provided by its competitors and the extra benefits or

offerings or services provided by its competitors.

Comparative analysis among brand packages.

Methodology

The selection of the research method is crucial for the conclusions as it affects what

we have to say about the cause and factors influencing the project work. It was

important to choose a research method which was within the limits of what could be

done. Time, feasibility, ethics and availability to measure the phenomenon correctly

were issues constraining the project work. Research was conducted in

CHANDIGARH.

Instrument

TWO questionnaires was devised to carry out one for Consumers and other for

Retailers

Sources of Data

1.) Primary Sources

The sample consists of students, employees, people on the streets and retailers.

Various measurable factors were identified. Based on these variables, primary

sources were identified.

2.) Secondary Sources

It was collected from the employees and HR of the company; they provided few

editions of the annual magazines being published by Kandhari, which really helped

in gathering the information.

51

QUESTIONNAIRE DESIGN

First of all for designing the questionnaire, there are scaling techniques available

like:

1) Comparative Scales.

a) Paired Comparison

b) Rank order

c) Constant Sum

d) Other Techniques

2) Non – Comparative Scales

a) Continuous Rating Scales

b) Itemized Rating Scales

Likert Scale

Semantic Differential Scale

Staple

Out of all these mentioned techniques for designing the questionnaire, I have opted

for Comparative Scale Technique since this way it becomes much more easy for

answering the questions and also the context in which the questions have been

asked, gets delivered across to the other party easily. And thus we can analyze the

responses in a better way.

And to obtain the graphical view of the responses being generated, we have used

the Bar graph and Pie chart analysis, since it also helped in doing justification to

the responses being gathered from the sample, as it again clearly becomes visible

that how much percentage of customers agree with which question being asked and

thus accordingly a collective percentage of the participants, really helped us to

gather/ conclude our findings in a more effective and an efficient manner

Method of Data Collection

Data collection means gathering information to address those critical evaluation

questions that were identified earlier in the evaluation process. Data was collected

by conducting opinion surveys by filling out questionnaires on paper and on internet.

52

Data Collection:

The data was collected through survey.

Consumers

Number of consumers who were survey – 100

Number of responses through email – 25

Number of responses obtained by personal interview – 75

Retailers

Number of retailer who were survey through personal interview – 100

Sampling

Sampling involves selecting units from a population of interest so that by studying

the sample one can fairly generalize the results back to the population from which

they were chosen. In the present course work, convenience sampling was used and

an aggregate sample size of 100 consumers was considered.

Sampling technique

Sample Type: “Non Probabilistic” Convenience sampling was followed.

Convenience sampling is used in exploratory research where the researcher is

interested in getting an inexpensive approximation of the truth. As the name implies,

the sample is selected as per the convenience

Sample size: 100

Analysis and Discussion

The variables relevant for analysis of data were collected. Various analysis and

interpretations have been shown in graphical and tabular form

Analysis of 300ML sku (Consumers)

53

This graph makes a distinction between the number of males and number of

females with whom sampling was conducted. The percentage is almost the

same in both categories.

MEN; 48%

WOMEN 52%

Gender

This graph depicts the total number of consumers divided on the basis of the

age group they belong to. The age of consumers included in the sampling

activity ranged from 10 years. Accordingly the age groups 10 to 20, 20 to 30,

30 to 40, 40 to 50, 50 to 60 and 60 above.

10 to 20 20 to 30 30 to 40 40 to 50 50 to 60 above 600

5

10

15

20

25

30

35

10

32

2018

12

8

Age group

1. Favorite soft-drink?

54

a) Coca cola b) Pepsi c) others

The following graph denotes

the feedback of consumers

irrespective of the age group

they belong to or their gender.

This is an overall perception of

the consumers towards their

Favorite soft drink. Coke has

larger share then Pepsi in

Chandigarh.

I. If Coke which brand

a) Thumps-up b) Sprite c) Coca-Cola d) Maaza

e) Limca f) Fanta

It was found that out of

100 correspondences

47 of them prefer Coke.

From these 47

correspondences

favorite brand of

Coke was asked.

The outcome of

survey is shown

in graph. Thumps

is preferred by

youth and Limca

by all age group

but more famous

among old people

55

Coke; 47%

Pepsi; 40%

Others; 13%Favorite Soft Drink

Thumps-up Coca-cola Sprite Maaza Fanta Limca0

2

4

6

8

10

12

14

16

10

15

34

3

12

If Coke then which product

II. If Pepsi which brand

a) Dew b) 7-up c) Pepsi d) Slice

e) Mirinda (lemon) f) Mirinda (orange)

It was found that

out of 100

correspondences

40 of them prefer

Pepsi.

From these 40

correspondences

favorite brand of

Pepsi was asked.

The outcome of

survey is shown

in graph. Pepsi

and Dew are most selling brands

If Pepsi, Have you ever tried coke product YES / NO

i. If Yes, then what made you change over from Coke to Pepsi

a) Taste b) Flavor c) Celebrity

d) Advertisement e) Brand loyalty f) Availability

56

Dew Pepsi 7 up Slice Mirinda (o) Mirinda (L)0

5

10

15

20

25

10

21

7

20 0

If Pepsi then which product

40 correspondences who said that

their favorite soft drink is Pepsi were

asked that have they tried Coke and

all of them said yes, they were again

asked what made them to choose

Pepsi instead of Coke, common

answer was taste. Advertisement

also had great impact.

2. Which size you prefer more

a) 200ml b)

300ml c) Pet

bottle (500ml)

d) Pet bottle (2L) e) Can

From 100

respondent

43 people

like pet

bottle and

28 people

like 300ml 8

people

preferred

cans and

rest 2l and

200ml.Pet

bottles are

more famous among youth. According to survey done Pie chart shows which

brand package size are preferred by consumers

3. Do you think rate of 300ml bottle which is available at Rs.12 is worth it?

a) Yes b) No

57

Availability

Addvertisement

Taste

Flavor

Brand loyalty

0 2 4 6 8 10 12 14 16

3

7

15

6

6

Why Pepsi instead of Coke

9%

28%

43%

12%

8%

Preferred Brand package

200 ml 300 ml

500 ml Pet 2 L Pet

Cans

Out of 100 People 53 people

said the rate of 300ml is

more then what it should be

keeping in mind the inflation

rate and 47 people said yes

rate of 300 ml is fine and

300ml RGB has 85% share

in market when compared

with 200ml RGB, it clearly

shows that people want

more while they want to

spend less money.

4. Do you find the display

attractive of

a) Coke b) Pepsi c) Same

37 people think

that Pepsi display is

more attractive than

Coke display and 34

said Coke display is

better and 29 said

both are same neck

to neck. From this it

can be seen that

companies spend

lot of money in

advertisements.

5. Source of supply of soft drink

58

YES; 47%NO; 53%

Rate of 300ml is worth it?

Pepsi; 37%

Coke; 34%

Same; 29%

Display Attractive

a) Grocery store b) Confectioneries c) Eating & drinking d) Others

It was found that source of

supply of soft drinks is

more from convenience

than grocery store or eating

& drinking hubs. It shows

that there are more

convenience store in

Chandigarh, it is found that

mostly grocery shop only

keep Pet bottles, they avoid

RGB was it require lots of

attention.

6. Have you ever experience that, you asked for the Coke product and

vendor supplied you with Pepsi product

a) Yes b) No

Out of 100 respondents, it was coincidence that 50 people said YES and

same number of people said NO. From this it can be concluded that mostly

vendors sell those things which consumers doesn’t ask for

i. If yes, did you buy that Pepsi product

a) Yes b) No

59

Grocery ConvenienceEatind & Drinking

Others

0

5

10

15

20

25

30

35

40

45

23

39

31

7

Source of supply

YES; 50%NO; 50%

50 persons said that

it happened with

them that when they

had asked for Coke

product and vendor

supplied with Pepsi

product in that case

another question

was asked

Did they buy that product?

36 people said YES they bought

and 16 don’t. This shows the

brand loyalty of 16 people with Coke.

7. Choose ONE you like most out of given TWO:

Following are the answer given by 100 respondents as they have to choose one out

of two given. Respondents choose which they liked the most.

With this it can be analyze, Brands of both companies has direct competition with

each other like Maaza competitor is Slice, Limca competitor is Mirinda Lemon

likewise Fanta with Mirinda orange, Sprite with 7-up and Coke with Pepsi

60

YES NO0

5

10

15

20

25

30

35

40

34

16

Dew; 74%

Thums; 26%

Thums-up vs Dew

Coke 56%

Pepsi 44%

Coke vs Pepsi

Maaza; 62%

Slice 38%

Maaza vs Slice

Fanta; 71%

Mirinda; 29%

Fanta vs Mirinda (orange)

Sprite; 63%7-up; 37%

Sprite vs 7-up

Limca; 73%

Mirinda; 27%

Limca vs Mirinda (lemon)

Analysis of 300ML sku (Retailers)

1.) TYPE OF SHOP:

a) Grocery b)Convenience c) Eating & Drinking

In survey almost equal number of types of shops are covered, so that it will

not favor any question that been asked to any particular type of shop. 100

RGB Retailers has been surveyed. From this it is analyze that convenience

61

shops are more in

Chandigarh than

other two types of

shops.

2.) Which package sells

more:

a) 300ML

b) PET

c) SAME

From 100 RGB retailers it was asked which package sells more in your shop,

it was found that Pet bottles and Rgb almost sells equal in city. RGB sells

more because Pet bottle mostly used in household and Rgb sells more at

E&D and convenience, these types of shops are more in the city.

3) Which 300ml RGB brand you are more satisfied to sell?

a) Pepsi b) Coca cola c) Same

62

Grocery; 33%

Convenience; 34%

Eating & Drink-ing; 33%

Type of shop

PET; 45%

300 ml; 48%

SAME; 9%

Which package sells more

50 retailers out of 100 are

more satisfied to sell Coke

then Pepsi and 30 retailers

are inclined towards Pepsi

and 20 are satisfied with both.

This shows that demand of

coke is more that’s why

vendors are satisfied or in

these 50 monopoly or

discounted outlets are there of

coke.

I. If PEPSI, why?

a) More margin/schemes than coke c) Brand loyalty

b) Services d) Supply

Out of 30

those who are

satisfied with

300ml Rgb of

Pepsi were

asked why

Pepsi?

17 of them

said more

margin then

Coke

13 are more satisfied with Pepsi services than which Coke offered.

63

COKE; 50%

PEPSI; 30%

SAME; 20%

Brand Loyalty

Services

More Margin

Supply

0 2 4 6 8 10 12 14 16 18

0

13

17

0

Why Pepsi

4) Reaction towards 300ml RGB, are you happy to sell?

a) Satisfied b) Mix response c) Not satisfied

Out of 100 retailers only 47

are satisfied which less

than 50% of total outcome.

Retailers are facing many

problems by selling glass

bottle. They prefer to sell

Pet bottles instead of glass

bottle. Glass bottle require

lots of maintenance and it

is also quite expensive to

refill glass bottle for

companies.

I. If Not satisfied, what problems you are facing?

a) Margin is less then Pet bottles d) Space problem

b) Breakage / Replacement problem e) Change

c) Sometime you need stock but due to empty cant buy it

Space

problem is

mostly faced

by grocery

store; they

are more

interested in

pet bottles.

Pet bottles

also give

64

Satisfied

Not Satisfied

Mix Response

0 5 10 15 20 25 30 35 40 45 50

43

47

10

Margin Breakage/Replace No Empty Space Change0

2

4

6

8

10

12

14

16

18

more margins and there are no issues of empty and breakage is also

minimized

5) Do you think 300ML RGB should be replaced with 300ML Pet bottle?

Yes

No

YES, 100%

300 ml RGB should be replaced with 300 ml Pet

Through internship

I came to know about the problems that are being faced by vendors regarding 300ml

Rgb. So I think of if glass bottle being replaced by pet bottle

6) Do you think rate of 300ml bottle which is available at Rs.12 is worth it?

a) Yes b) No

65

YES; 74%

NO; 26%

74 retailers think the rate of

300ml Rgb bottle which is available at Rs.12 is worth it keeping in mind the scenario

of inflation rate and rest 26 think that it is not worth it.

Details of actual work undertaken

Coca cola has its own management system which is a major tool that helps

management in problem solving and framing marketing strategy.

Followings are done in CHANDIGARH during INTERNSHIP of 3 months.

66

Route Ridding was the first thing done during 3 months of internship.

In route riding the task was to go along with salesman in truck, the main motive of

route ridding is to see how orders being taken from vendors and different schemes

being told by salesman, schemes changes daily.

Through route ridding it came to know that outlets are classified in two categories

which are as follow -:

67

ROUTE RIDDING

CREATE MARKET FOR 200ML RGB

MERCHANDISING IMPACTING (MIT)

SCOPE OF OPPORTUNITY FOR OPENING NEW OUTLETS

COKE VS PEPESI

DEVELOPMENT/IMPROVEMENT/COMPLAINTS

PRESELL ORDER

EDSR (EVERY DEALER SURVEY REPORT)

ROUTE RIDDING

OUTLETS

Based on Consumption pattern

E&D: - This stands for Eating & Drinking outlets. Generally all the RESTUARANTS,

HOTELS, FAST FOOD come under this.

GROCERY: - This is a part of merchandising. Generally all the GENERAL stores

and GROCERY shops comes under this category.

CONVENIENCE: - Includes outlet which are small stores or shops, generally

accessible locality. There are often located along side busy roads. It includes STD,

PAN, CONFECTIONERY shop etc.

68

Co

nsu

mp

tio

n Eating & Drinking (E&D) E&D 1

E&D 2

GROCERY

CONVENIENCE

Consumption Volume

Based on volume pattern

DIAMOND: - Those outlets are known as Diamond outlets where the annual sale of

Coca cola soft drinks is more than 800 crates.

GOLD: - Those outlets are known as Gold outlets where the sale is in between 500

crates to 800 crates per annum.

SILVER: - Those outlets are known as Silver outlets where the sale is in between

200 to 499 crates per annum.

BRONZE: - Those outlets are known as Bronze outlets where the sale is less than

200 crates per annum.

69

VOLUME

DIAMOND GOLD SILVER BRONZE

In three months internship another task was given to create market for

200ml bottle i.e. “CHOTA COKE”. Task was to go to vendors, tell them about the

availability of the product is there, which was not there earlier, and to convince

the retailer to buy 200ml coke.

Strategies where made to sell 200ml coke, different scheme were given

Some areas surrounding Chandigarh are AMC, AMC are the area like villages,

colonies etc. where lower middle class people resides. These area are operated

by distributors not directly by FOBO.

70

CREATE MARKET FOR 200ML RGB

Following data show the order taken from the vendors in Manimajra an AMC.

These above orders were mainly in consideration of 200 ml and Cans, as it was told

that the orders from this AMC are not there regarding 200ml and cans.

This was another task that was given on every Friday’s and Saturday’s in a week.

In this, task was to go along with MD (Market developer) and check out each outlet

under the area of Market developer. Main motive of market impacting are as follow

To see that if all products are available at that particular outlet or not,

If not then products are being made available to vendors.

To see Visi-cooler is at prime location or not

Products are arranged in COLAGE in Visi-cooler, Sequence of COLAGE

is COKE, Thumps-up, Limca, Sprite, Fanta, Maaza, and Minute-maid.

Any problem being faced by him regarding stocks and services.

This was another very interesting task that was given. Main motive was to open new

outlets. In this Visi-cooler i.e. SGA (Sales Generating Asset) was to be provided to

the new outlet. Main focus for opening new outlet was not any shop or restaurant.

New outlet should be open at the fuel pumps in Chandigarh. SGA should be given to

the fuel pumps.

What I observed was many fuel pumps has their own food court or it was company

owned.

71

MERCHANDISING IMPACTING (MIT)

SCOPE OF OPPORTUNITY FOR OPENING NEW OUTLETS

No. of shops visited Order taken

15200ml coke – 14 cases

CAN – 6 cases

There are 22 fuel pumps in Chandigarh out of which 7 of them were convince to sell

Coca-Cola products and SGA were given to them.

Development/ Improvement/Complaints Performa were made for the vendors. In this

all the complaints were registered which were facing by the outlet owners; this was

done to improve the services of Coca-Cola and to make development.

It was found that majority of share is of Coke in Chandigarh nearly 60% and

strangely same percentage of owners i.e.60% are not satisfied with Coke, they have

complaints moreover they are happy to sell Pepsi instead of Coke. They just keep

Coke because of consumer demand else they are not satisfied.

Rests 40% who are satisfied are either monopoly counter of Coke or Discounted

outlets or has good relationship with the salesman.

Through this it was found that services of Pepsi are far better than Coke and margin

is also little higher in case of Pepsi.

Mostly complaints of Outlets are as follow:-

Replacement was not done of breakage, expired products, regarding Quality.

Margin is high in case of Pepsi as compare with Coke.

Stock of each brand packs are not available or given to specific outlets.

Visi-cooler problem not working well or require bigger Visi-cooler as

formalities has been done still nothing done.

Schemes were not given to them.

EDSR was to get how much stock does the particular outlet has. In this to get the

mobile number of the owner so that daily message being send to the owner

regarding the Schemes, in Coke schemes changes everyday. It also helps to

compare the stock between Coke and Pepsi available at outlets.

Below is Performa which was needed to be filled up:-

72

DEVELOPMENT/IMPROVEMENT/COMPLAINTS

EDSR (EVERY DEALER SURVEY REPORT)

SECTOR- EDSR DATE-

Outlet name Phone no.

Visi Empty RGB 500 Pet 2L PET Soda Pet Cans Water

K

oPc Ko Pc

K

oPc Ko Pc Ko Pc Ko Pc Ko Pc

Performa need to be filled in numbers that how much stock does outlet has.KO – Coca-ColaPC – Pepsi

Presell order was to get order one day prior of the delivery. Orders were taken from

the vendors one day before and delivery was given next day. This was done

because vendors were facing problems regarding the brand package size that are

not available when they want.

Orders were taken of all brand packages with main focus on Cans and Juices. There

were shortages of Cans, only some parts of the city are being supplied with Cans.

Vendors always gave complaint regarding stock, whether they required or not. So

this problem was solve out through presell order.

73

PRESELL ORDER

Findings of the Study

In the due course of time of project, which lasted for 8 weeks, I got the chance of

visiting to many outlets and also interact with each and every person of those outlets

in Chandigarh. By formal interaction with the dealers and retailers, I got to know

many things from the outlets. In this particular city Coca cola has larger share than

Pepsi. But there are few mixed outlets too, so to increase the market share of Coca

cola it should tap all the mixed outlets. About 60% of market is owned by it, yet more

is expected to be achieved

Share of 300ML in restaurants and hotels of Chandigarh is 69% whereas 2L

share is 21%; 500ml pet has 6% and cans have 4%.

Distribution channel is effective at present but in long run it needs to be

upgraded. Retailers in Chandigarh comes under direct operations and

retailers in small town in surrounding areas of Chandigarh comes under

indirect operations

The major competitor PEPSI is getting the market aggressively through its

services and high margin issues.

Retailer in some area revealed that they are not getting schemes i.e.

distributors are not providing schemes properly, basically in rural areas.

Minute maid Nimbo Fresh and 200ml RGB brand packages are getting

popularity.

74

Recommendations

I strongly believe that RGB(refill glass bottle) should be replaced with Pet

bottles of same size because it will solve out all the problems which are as

follow :-

I. For Retailers

a) Breakage

b) No empty bottles required to fill carat

c) No extra space required to keep the carat outside shop

II. For Company

a) To carry the empty carat back to manufacturing unit to refill again

b) Cost will be reduced Pet bottle are cheaper than Glass bottle

c) Process of rinsing and washing RGB bottle again will be eliminated

which will lead to less wastage of water.

Services of Pepsi are far better than Coke, good relationship with vendors,

solving any problem with in no time should be done

Due to the current prices, an eyebrow raiser for some, the product could be

sold in packs of 2 or more and there could be a price reduction.

New flavors can be introduced into the market as early as possible consumers

were eager to know if the drink would come in more flavors, health drinks like

milk proteins content soft drink can be invented

Younger generation are more interested in soft drinks ,so new openings in

institutional areas should be increased

Use some proper methodology to provide the information about the schemes

directly to the retailers. Company has to try to sort out the personal

misunderstandings between distributors and retailers.

75

Limitations

Time and cost constraints were also there.

A Samples size of 100 has been use due to other work also done regularly

which was given to us by company.

The time period of study was only for three month so it was not possible to

cover all the areas and go into the depth of the problem and make analysis.

Chances of some biasness could not be eliminated.

Lastly, some amount of error exists in the data filling process because of the

following reasons.

Influence of others.

Misunderstanding of the concept.

Hurried filling of the questionnaire.

76

References & Bibliography

Websites Visited:

http://www.thecoca-colacompany.com

http://www.coca-cola.com

http://www.ko.com

http://www.google.com

http://www.wikipedia.org

77

Annexure

Questionnaire of consumer

Name of the respondent……………………………………

Gender: a) Male b) Female

Marital status: a) Married b) Single

Age: a) 10-20 b) 21-30 c) 31-40 d) 41-50 e) 51-60 f) >60

Education: a) School going b) Intermediate (+2) c) Graduate d) Postgraduate

Occupation: a) Self employed b) Govt. Employee c) Non Govt. employee e) Student f) Others Monthly Income: a) 5000-15000 b) 15,001-30,000 c) 30,001- 45000 d) 45000 <

1. Favorite soft-drink?

b) Coca cola b) Pepsi c) others

If Coke which brand

b) Thumps-up b) Sprite c) Coca-Cola d) Maaza e) Limca

f) Fanta

If Pepsi which brand

b) Dew b) 7-up c) Pepsi d) Slice e) Mirinda (lemon)

f) Mirinda (orange)

If Pepsi, Have you ever tried coke product YES / NO

i. If Yes, then what made you change over from Coke to

Pepsi

b) Taste b) Flavor c) Celebrity

e) Advertisement e) Brand loyalty f) Availability

ii. If No, Any specific reason for not trying Coke product?

a) Taste b) Non-Availability c) Brand loyalty with

Pepsi

d) Favorite celebrity endorsing Pepsi e) Bad publicity

78

2. Which size you prefer more

a) 200ml b) 300ml c) Pet bottle (500ml)

d) Pet bottle (2L) e) Can

3. Do you think rate of 300ml bottle which is available at Rs.12 is worth it?

a) Yes b) No

4. Which will you prefer more

a) 300 ml for Rs12 b) 200 ml for Rs10

5. Do you find the display attractive of

a) Coke b) Pepsi c) Same

6. Source of supply of soft drink

a) Grocery store b) Confectioneries c) Eating & drinking d) others

7. Have you ever experience that, you asked for the coke product and vendor supplied you with Pepsi product

a) Yes b) No

ii. If yes, did you buy that Pepsi product

b) Yes b) No

8. Choose ONE you like most out of given TWO:

Questionnaire for Retailers

79

a) Thumps-up b) Mountain dew a) Coca-Cola b) Pepsia) Sprite b) 7-up a) Limca b) Mirinda (Lemon)

a) Fanta b) Mirinda (orange) a) Maaza b) Slice

1.) OUTLET NAME:SECTOR:TYPE OF SHOP:

b) Grocery c) E&D 1c) Convenience d) E&D 2

2.) Which package sells more: 300ML PET

3.) Which 300ml RGB brand you are more satisfied to sell?a) Pepsib) Coca colac) Same

If PEPSI, why? More margin/schemes than coke Brand loyalty Services Supply

4.) Reaction towards 300ml RGB, are you happy to sell? Satisfied Mix response Not satisfied

a) If Not satisfied, what problems you are facing? Margin is less then Pet bottles Breakage problem Space problem Change Sometime you need stock but due to empty cant buy it

5.) Do you think 300ML RGB should be replaced with 300ML Pet bottle? Yes No

6.) Do you think rate of 300ml bottle which is available at Rs.12 is worth it? b) Yes b) No

80