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A
Project Report Study On
“HORIZONTAL EXPANSION OF COCA COLA”
Submitted in Partial Fulfillment
Of Award Of Degree
MBA (Master of Business Administration)
Submitted to: Submitted by :
Fms maiet Arvind Duwa
MAHARISHI ARVIND INSTITUTE OF ENGEENIAREING AND TECHNOLOGY
1
Declaration
I hereby that I have worked on the topic “Analysis of Horizontal Expansion
Strategy of Coke in Jaipur”
All the information that has been collected, analyzed and documented for the
project is authentic possession to me.
I would like to categorically mention that the work here has neither been
purchased nor acquired by any other unfair means. The data and information
existing in this report are accurate and update to the current data, to the best of
our knowledge.
However, for this purpose of the project, information already compiled in many
sources has been utilized.
All information in this report is true representation of what I have experienced
during the project.
Arvind duwa
2
PREFACE
I feel great pleasure in doing my project “Total project Management at the Distributor
and Retailer Level of Hindustan Coca-Cola Beverages Pvt. Ltd.” with Coca-Cola.
Their whole hearted support enabled me to complete this project.
This project is on “Quality initiatives taken by Coca-Cola” in pursuit of TQM Phase- III
certification for the Kaladera Plant in Jaipur.
In the I phase of the project I collected various samples from the Distributors and
Retailers and surveyed the warehouses along various quality parameters with the
help of questionnaires and observation method.
In the second phase I analyzed the data generated in the I phase, generated report
on its basis and presented the same to the quality department officials with the help
of bar graphs, pie-charts and histograms.
Arvind duwa
3
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr. Jagan (TRAINER), for guiding
me right from the inception till the successful completion of the project. I sincerely
acknowledge her for extending their valuable guidance, support for literature, critical
reviews of project and the report and above all the moral support she had provided
to me with all stages of this project.
I would also like to thank the supporting my college faculty MR. ANKUR RASTOGI
for her help and cooperation throughout our project.
Arvind duwa
4
EXECUTIVE SUMMARY
Over the last few years, hundreds of companies have greatly improved their
performance &the graph of growth through superior sales promotion services. Today
many companies are building on these foundations and are tuning their products in
Soft drink segment into a formidable competitive weapon. Sales Promotion services
have become a subject of huge interest in recent years.
Sales Promotion Services is growing because:
In the face of ever-increasing competition in organizations feel, it is important
to build reliable & sustainable processes with focus on strong relationships
with customers. Significant revenue & profit gains can be made from
successful Sales
Promotion Activities that improve efficiency & help serve customers better &
faster.
The different distribution channels are as follows:"
1. Eating & Drinking 2.Convenience 3.Grocery
Activation is the key part of Coca-Cola marketing strategy
Company believes that soft drink sell is not a planned sell it's a impulse
buying, and activation create impulse for buying
For improvement of Coca-Cola market, a proper research work has done.
Sales Promotion Strategies are offering new & better ways of addressing
industries objectives.
Coca-Cola has developed a unique sales promotion strategy that offer a
unique way to increase the sales of the soft drink.
5
TABLE OF CONTENTS
1) Introduction to the Industry
2) Introduction to the Organization
3) Research Methodology
i) Title of the Study
ii) Duration of the project
iii) Objective of the study
iv) Types of research
v) Sample size and method
vi) Scope of the study
vii) Limitation
4) Facts & Findings
5) Analysis & Interpretation
6) SWOT Analysis
7) Conclusion
8) Recommendations & Suggestion
9) Appendix
10)Bibliography
6
CHAPTER 1
INTRODUCTION OF INDUSTRY
7
INTRODUCTION
SOFT DRINK MARKET IN INDIA
The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded
in 1886, the Company is the world's leading manufacturer, marketer, and distributor
of nonalcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. Our corporate headquarters are in Atlanta, with local operations in
over 200 countries around the world. The basic proposition of the business is
simple, solid and timeless. The company aims at bringing refreshment, value, joy
8
and fun to its stakeholders, they successfully nurture and protect brands,
particularly Coca-Cola.
More than a billion times every day, thirsty people around the world reach for Coca-
Cola products for refreshment. They deserve the highest quality—every time. Our
promise to deliver that quality is the most important promise we make. And it
involves a worldwide, yet distinctively local, network of bottling partners, suppliers,
distributors and retailers whose success is paramount to our own. Our investment in
local communities in over 200 countries totals billions of dollars in jobs, facilities, and
marketing, the purchase of local goods and services, and local business
partnerships. Always and everywhere, we pursue continuous innovation in the
products we offer, the processes we use to make them, the packages we develop
and the ways we bring them to market.
The Coca-Cola system is one of the most diverse organizations on earth, with a rich
mosaic of talented colleagues who bring a variety of intellectual, professional, ethnic
and cultural perspectives to our enterprise. They reflect the nations, cultures and
languages of the world. Our policy is to foster an inclusive environment that
encourages all employees to develop and perform to their fullest potential.
Coca-Cola is a carbonated soft drink sold in the stores, restaurants, and vending
machines of more than 200 countries. It is produced by The Coca-Cola Company of
Atlanta, Georgia, and is often referred to simply as Coke (a registered trademark of
The Coca-Cola Company in the United States since March 27, 1944). Originally
intended as a patent medicine when it was invented in the late 19th century by John
Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose
marketing tactics led Coke to its dominance of the world soft-drink market throughout
the 20th century.
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.
9
The Coca-Cola Company has, on occasion, introduced other cola drinks under the
Coke brand name. The most common of these is Diet Coke, with others including
Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola
Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee.
In response to consumer insistence on a more natural product, the company is in the
process of phasing out E211, or sodium benzoate, the controversial additive used in
Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children. The
company has stated that it plans to remove E211 from its other products, including
Sprite and Oasis, as soon as a satisfactory alternative is found.
Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first
distributed in 1888 to help promote the drink. By 1913, the company had redeemed
8.5 million tickets.
This Coca-Cola advertisement from 1943 is still displayed in the small city of Minden,
Louisiana.
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a
coca wine called Pemberton's French Wine Coca. He may have been inspired by the
formidable success of Vin Mariani, a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French
Wine Coca.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[10] 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,
10
and impotence. Pemberton ran the first advertisement for the beverage on May 29 of
the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola — sold by three separate businesses — were
on the market. Asa Griggs Candler acquired a stake in Pemberton's company in
1887 and incorporated it as the Coca Cola Company in 1888. The same year, while
suffering from an ongoing addiction to morphine,[14] Pemberton sold the rights a
second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy
and E.H. Bloodworth. Meanwhile, Pemberton's alcoholicson Charley Pemberton
began selling his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the
other two manufacturers could continue to use the formula. So, in the summer of
1888, Candler sold his beverage under the names Yum Yum and Koke. After both
failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late
1888, in order to force his two competitors out of the business. Candler purchased
exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk
Walker. However, in 1914, Dozier came forward to claim her signature on the bill of
sale had been forged, and subsequent analysis has indicated John Pemberton's
signature was most likely a forgery as well.
Old German Coca-Cola bottle opener
In 1892 Candler incorporated a second company, The Coca-Cola Company (the
current corporation), and in 1910 Candler had the earliest records of the company
burned, further obscuring its legal origins. By the time of its 50th anniversary, the
drink had reached the status of a national icon in the USA. In 1935, it was certified
kosher by Rabbi Tobias Geffen, after the company made minor changes in the
sourcing of some ingredients.
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.[19]
Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in
Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor
11
was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very
different from the much later hobble-skirt design that is now so familiar. Asa Candler
was tentative about bottling the drink, but two entrepreneurs from Chattanooga,
Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and
were so persuasive that Candler signed a contract giving them control of the
procedure for only one dollar. Candler never collected his dollar, but in 1899
Chattanooga became the site of the first Coca-Cola bottling company. The loosely
termed contract proved to be problematic for the company for decades to come.
Legal matters were not helped by the decision of the bottlers to subcontract to other
companies, effectively becoming parent bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.
New Coke
One of Coke's ads to promote the flavor change.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula
of the drink with "New Coke". Follow-up taste tests revealed that most consumers
preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola
management was unprepared for the public's nostalgia for the old drink, leading to a
backlash. The company gave in to protests and returned to a variation of the old
formula, under the name Coca-Cola Classic on July 10, 1985.
21st century
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.[25] In 2007, Coca-Cola began to
sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and
zinc, marketed as "Diet Coke Plus."
12
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 April 2007, in Canada, the name "Coca-Cola Classic" was changed back to
"Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer
in production, eliminating the need to differentiate between the two. The formula
remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-
ounce bottles sold in parts of the southeastern United States. The change is part of a
larger strategy to rejuvenate the product's image
In November 2009, due to a dispute over wholesale prices of Coca-Cola products,
Costco stopped restocking its shelves with Coke and Diet Coke.
Use of stimulants in formulaUse of stimulants in formula
When launched Coca-Cola's two key ingredients were cocaine (benzoylmethyl
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 — cocaine
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose;
in 1891, Candler claimed his formula (altered extensively from Pemberton's original)
contained only a tenth of this amount. Coca-Cola did once contain an estimated nine
milligrams of cocaine per glass, but in 1903 it was removedCoca-Cola still contains
coca flavoring.
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves —
the leftovers of the cocaine-extraction process with cocaine trace levels left over at a
molecular level. To this day, Coca-Cola uses as an ingredient a cocaine-free coca
leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.
In the United States, Stepan Company is the only manufacturing plant authorized by
the Federal Government to import and process the coca plant, which it obtains
mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca
13
flavoring agent for Coca-Cola, Stepan Company extracts cocaine from the coca
leaves, which it sells to Mallinckrodt, a St. Louis, Missouri pharmaceutical
manufacturer that is the only company in the United States licensed to purify cocaine
for medicinal use.
Kola nuts — caffeine
Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for
example, the ingredient label states "Flavourings (Including CaffeineKola nuts
contain about 2 percent to 3.5 percent caffeine, are of bitter flavor and are commonly
used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty
Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove
caffeine from its formula. The case was decided in favor of Coca-Cola.
Subsequently, in 1912 the U.S. Pure Food and Drug Act was amended, adding
caffeine to the list of "habit-forming" and "deleterious" substances which must be
listed on a product's label.
Coca-Cola contains 46 mg of caffeine per 12 fluid ounces, while Caffeine-Free Coca-
Cola and Diet Coke Caffeine-Free contain 0 mg.
ProductionProduction
Coca-Cola 375 mL 24 can pack (AU)
Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caffeine
Phosphoric acid v. Caramel (E150d)
Natural flavorings
14
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from sugar,
approximately 10 teaspoons), 50 mg of sodium, 0 grams fat, 0 grams potassium, and
140 calories.
Formula of natural flavorings
Main article: Coca-Cola formula
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 formulaThe 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.
On February 11, 2011 Ira Glass revealed on his PRI radio show, This American Life,
that the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The
formula found basically matched the formula found in Pemberton's diary.
Franchised production model
The actual production and distribution of Coca-Cola follows a franchising model. The
Coca-Cola Company only produces a syrup concentrate, which it sells to 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.
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling
Company".
Brand portfolioBrand portfolio
15
Name Launched Discontinued Notes Picture
Coca-Cola 1886The original version of
Coca-Cola.
Caffeine-Free Coca-Cola 1983The caffeine free
version of Coca-Cola.
New Coke/"Coca-Cola II" 1985 2002 Still available in Yap and American Samoa
Coca-Cola with Lemon 2001 2005
Still available in:
American Samoa, Austria, Belgium, Brazil,
China, Denmark, Federation of Bosnia and
Herzegovina, Finland, France, Germany,
Hong Kong, Iceland, Korea, Luxembourg,
Macau, Malaysia, Mongolia, Netherlands,
Norway, Réunion, Singapore, Spain,
Switzerland, Taiwan, Tunisia, United
Kingdom, United States, and West Bank-
Gaza
Coca-
Cola
Vanilla
2002200
5
Still
available
in:
Austria,
Australia,
China,
Germany,
Hong
Kong, New
Zealand
(600 mL
only)
16
Malaysia,
Sweden
(Imported)
and
Russia.
Was called
"Vanilla
Coca-Cola
(Vanilla
Coke)"
during
initial U.S.
availability.
20
07
It was
reintrodu
ced in
June
2007 by
popular
demand
Co
ca-
Co
la
C2
20
03
20
07
Wa
s
onl
y
av
ail
abl
e
in
Ja
pa
17
n,
Ca
na
da,
an
d
the
Un
ite
d
St
ate
s.
Coca-Cola with Lime 2005
Available in Belgium, Netherlands,
Singapore, Canada, the United Kingdom,
and the United States.
Coca-
Cola
Raspberry
June
200
5
End
of
2005
Was
only
available
in New
Zealand.
Coca-Cola Zero 2005
Coca-Cola M5 2005
Only available in Federation of Bosnia and
Herzegovina, Germany, Italy, Spain, Mexico
and Brazil
Coca-
Cola
Black
Cherry
Vanilla
2006Middl
e of
2007
Was
replaced
by
Vanilla
Coke in
18
June
2007
Co
ca-
Co
la
Blā
k
20
06
Be
gin
nin
g
of
20
08
On
ly
av
ail
abl
e
in
the
Un
ite
d
St
ate
s,
Fr
an
ce,
Ca
na
da,
Cz
ec
h
Re
pu
bli
c,
Slo
va
k
Re
19
pu
bli
c,
Fe
der
ati
on
of
Bo
sni
a
an
d
He
rze
go
vin
a,
Bul
gar
ia
an
d
Lit
hu
ani
a
Co
ca-
Co
la
Cit
ra
20
06
On
ly
av
ail
abl
e
20
in
Fe
der
ati
on
of
Bo
sni
a
an
d
He
rze
go
vin
a,
Ne
w
Ze
ala
nd
an
d
Ja
pa
n.
Coca-Cola
Light Sango2006 Only available in France and Belgium.
Coca-Cola
Orange2007
Only available in the United Kingdom and Gibraltar. In
Germany, Austria and Switzerland it's sold unter the label
Mezzo Mix.
21
Logo design
Detail on Elmira Coca-Cola Bottling Plant, Elmira, NY.
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank
Mason Robinson, in 1885.[50] 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
Contour bottle design
Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle.
The prototype never made it to production since its middle diameter was larger than
its base, making it unstable on conveyor belts.
2 Litre bottle label
The equally famous Coca-Cola bottle, called the "contour bottle" within the company,
but known to some as the "hobble skirt" bottle, was created 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
22
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."[52]
Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana,
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!".
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a
lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the
Owens-Illinois Glass Company bought out the Root Glass Company in the mid-
1930s. Dean went on to work in other Midwestern glass factories.
23
Although endorsed by some[this version of events is not considered authoritative by
many[who consider it implausible. One alternative depiction has Raymond Loewy as
the inventor of the unique design, but, while Loewy did serve as a designer of Coke
cans and bottles in later years, he was in the French Army the year the bottle was
invented and did not emigrate to the United States until 1919. Others have attributed
inspiration for the design not to the cocoa pod, but to a Victorian hooped dress.
In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took
advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to
articulate the doctrine of strict liability for defective products. Traynor's concurring
opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case
in U.S. law today.[56]
In 1997, Coca-Cola also introduced a "contour can," similar in shape to its famous
bottle, on a few test markets, including Terre Haute, Indiana. The new can has never
been widely released.
A new slim and tall can began to appear in Australia as of December 20, 2006; it
cost AU$1.95. The cans have a distinct resemblance to energy drink cans. The cans
were commissioned by Domino's Pizza and are available exclusively at their
restaurants.
In January 2007, Coca-Cola Canada changed "Coca-Cola Classic" labeling,
removing the "Classic" designation, leaving only "Coca-Cola." Coca-Cola stated this
is merely a name change and the product remains the same. The cans still bear the
"Classic" logo in the United States.
In 2007, Coca-Cola introduced an aluminum can designed to look like the original
glass Coca-Cola bottles.
In 2007, the company's logo on cans and bottles changed. The cans and bottles
retained the red color and familiar typeface, but the design was simplified, leaving
only the logo and a plain white swirl (the "dynamic ribbon").
In 2008, in some parts of the world, the plastic bottles for all Coke varieties (including
the larger 1.5- and 2-liter bottles) was changed to include a new plastic screw cap
and a slightly taller contoured bottle shape, designed to evoke the old glass bottles.
24
Coke Mini
200 mL "stubby" bottle widely available throughout China. These are sold in small
shops for 1 yuan, and must be consumed on site in order to return the bottle.
Coke mini is a 7.5 ounce can packaging of Coca-Cola that debuted in December
2009.[59][60][61] There are plans to also sell smaller cans of Sprite, Fanta Orange,
Cherry Coca-Cola and Barq's Root Beer.
Designer bottles
Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles
for Coca-Cola. Lagerfeld is not the first fashion designer to create a special version
of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by
fashion designers for Coca Cola Light soda have been created in the last few years.
In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of
the recognizable contour bottle. Well known Italian designers Alberta Ferretti,
Blumarine, Etro, Fendi, Marni, Missoni, Moschino, and Versace each designed
limited edition bottles.
Local competitorsLocal competitors
Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets.
Around the world, some local brands compete with Coke. In South and Central
America Kola Real, known as Big Cola in Mexico, is a fast-growing competitor to
Coca-Cola.[64] On the French island of Corsica, Corsica Cola, made by brewers of the
local Pietra beer, is a growing competitor to Coca-Cola. In the French region of
Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led
The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust
outsells Coca-Cola during the Christmas season. In Scotland, the locally produced
Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet
Coke began to outpace its sales. In India, Coca-Cola ranked third behind the leader,
25
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 IndiaTropicola, a
domestic drink, is served in Cuba instead of Coca-Cola, due to a United States
embargo. French brand Mecca Cola and British brand Qibla Cola, popular in the
Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major
competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam Cola
and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future
cola is a competitor. In Slovenia, the locally produced Cockta is a major competitor
to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's
biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive
competitor. Classiko Cola, made by Tiko Group, the largest manufacturing company
in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is
the top-selling soft drink on the Portuguese island of Madeira. Coca-Cola has stated
that Pepsi was not its main rival in the UK, but rather Robinsons drinks.
AdvertisingAdvertising
An 1890s advertisement showing model Hilda Clark in formal 19th century attire. The
ad is titled Drink Coca-Cola 5¢. (US)
Coca-Cola ghost sign in Fort Dodge, Iowa. Note older Coca-Cola ghosts behind
Borax and telephone ads.
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Coca-Cola signboard in Lahore, Pakistan.
Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.
Coca-Cola's advertising has significantly affected American culture, and it is
frequently credited with inventing the modern image of Santa Claus as an old man in
a red-and-white suit. Although the company did start using the red-and-white Santa
image in the 1930s, with its winter advertising campaigns illustrated by Haddon
Sundblom, the motif was already common.[69][70] Coca-Cola was not even the first soft
drink company to use the modern image of Santa Claus in its advertising: White
Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first
using him to sell mineral water in 1915.[71][72] Before Santa Claus, Coca-Cola relied on
images of smartly dressed young women to sell its beverages. Coca-Cola's first such
advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark
as its spokeswoman.
1941 saw the first use of the nickname "Coke" as an official trademark for the
product, with a series of advertisements informing consumers that "Coke means
Coca-Cola".[73] In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach
the World to Sing", produced by Billy Davis, became a hit single.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that
everyone on Earth drank Coca-Cola as their preferred beverage. This is especially
true in southern areas of the United States, such as Atlanta, where Coke was born.
Some of the memorable Coca-Cola television commercials between 1960 through
1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST
1936–1950, WAGA 1951–1959) during his career as a producer for the McCann
Erickson advertising agency. Many of these early television commercials for Coca-
Cola featured movie stars, sports heroes and popular singers.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing
people participating in taste tests demonstrating that, according to the commercials,
"fifty percent of the participants who said they preferred Coke actually chose the
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Pepsi." Statisticians were quick to point out the problematic nature of a 50/50 result:
most likely, all the taste tests really showed was that in blind tests, most people
simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to
combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of
Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding
which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the
market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She
filmed three commercials for the company. In 1994, to commemorate her five years
with the company, Coca-Cola issued special Selena coke bottles.[74]
The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting
Coke-product images in many of its films. After a few early successes during Coca-
Cola's ownership, Columbia began to under-perform, and the studio was sold to
Sony in 1989.
Coca-Cola has gone through a number of different advertising slogans in its long
history, including "The pause that refreshes," "I'd like to buy the world a Coke," and
"Coke is it" (see Coca-Cola slogans).
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign
where consumers earn points by entering codes from specially marked packages of
Coca-Cola products into a website. These points can be redeemed for various prizes
or sweepstakes entries
Holiday campaigns
Coca-Cola Christmas truck in Dresden, Germany.
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The "Holidays are coming!" advertisement features a train of red delivery trucks,
emblazoned with the Coca-Cola name and decorated with Christmas lights, driving
through a snowy landscape and causing everything that they pass to light up and
people to watch as they pass through.
The advertisement fell into disuse in 2001, as the Coca-Cola company restructured
its advertising campaigns so that advertising around the world was produced locally
in each country, rather than centrally in the company's headquarters in Atlanta,
Georgia. However, in 2007, the company brought back the campaign after,
according to the company, many consumers telephoned its information center saying
that they considered it to mark the beginning of Christmas. [76] The advertisement was
created by U.S. advertising agency Doner, and has been part of the company's
global advertising campaign for many years.
Keith Law, a producer and writer of commercials for Belfast CityBeat, was not
convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying that "I
don't think there's anything Christmassy about HGVs and the commercial is too
generic.
In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a
single, Wonderful Dream (Holidays are Coming), which entered the pop-music charts
in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to
radio, employing several variations of the jingle.[82]
Sports sponsorship
Special aluminum bottle designs, designed exclusively for the Vancouver 2010
Olympic Winter Games Torch Relay. Available in Canada.
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.[83] This
corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which
allowed Coca-Cola to spotlight its hometown. Most recently, Coca-Cola has released
localized commercials for the 2010 Olympics in Vancouver; one Canadian
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commercial referred to Canada's hockey heritage and was modified after Canada
won the gold medal game on February 28, 2010 by changing the ending line of the
commercial to say "Now they know whose game they're playing".[84]
Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other
competitions organized by FIFA. In fact, one FIFA tournament trophy, the FIFA
World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called
"FIFA — Coca Cola Cup".[85] In addition, Coca-Cola sponsors the annual Coca-Cola
600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor
Speedway in Concord, North Carolina and Daytona International Speedway in
Daytona, Florida. Coca-Cola has a long history of sports marketing relationships,
which over the years have included Major League Baseball, the National Football
League, National Basketball Association and the National Hockey League, as well as
with many teams within those leagues. Coca-Cola is the official soft drink of many
collegiate football teams throughout the nation.
Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on
the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi
Daredevils in Indian Premier League.
In England, Coca-Cola is the main sponsor of The Football League, a name given to
the three professional divisions below the Premier League in football (soccer). It is
also responsible for the renaming of these divisions — until the advent of Coca-Cola
sponsorship, they were referred to as Divisions One, Two and Three. Since 2004,
the divisions have been known as The Championship (equiv. of Division 1), League
One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused
unrest amongst some fans, who see it as farcical that the third tier of English
Football is now called "League One." In 2005, Coca-Cola launched a competition for
the 72 clubs of the football league — it was called "Win a Player". This allowed fans
to place 1 vote per day for their beloved club, with 1 entry being chosen at random
earning £250,000 for the club; this was repeated in 2006. The "Win A Player"
competition was very controversial, as at the end of the 2 competitions, Leeds United
AFC had the most votes by more than double, yet they did not win any money to
spend on a new player for the club. In 2007, the competition changed to "Buy a
Player". This competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-
Cola and submit the code on the wrapper on the Coca-Cola website {www.coca-
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colafootball.co.uk}. This code could then earn anything from 50p to £100,000 for a
club of their choice. This competition was favored over the old "Win A Player"
competition, as it allowed all clubs to win some money.
Introduced March 1, 2010, in Canada, to celebrate the 2010 Olympics, Coca Cola
will sell gold colored cans in packs of 12 355 mL each, in select stores.[86]
In mass media
Coca-Cola has been prominently featured in countless films and television programs.
It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid,
and The Gods Must Be Crazy. It provides a setting for comical corporate
shenanigans in the novel Syrup by Maxx Barry. And in music, in the Beatles' song,
"Come Together", the lyrics said, "He shoot Coca-Cola, he say..."
Health effectsHealth effects
Since studies indicate "soda and sweetened drinks are the main source of calories in
[the] American diet",[87] most nutritionists advise that Coca-Cola and other soft drinks
can be harmful if consumed excessively, particularly to young children whose soft
drink consumption competes with, rather than complements, a balanced diet.
Studies have shown that regular soft drink users have a lower intake of calcium,
magnesium, ascorbic acid, riboflavin, and vitamin A.[88] The drink has also aroused
criticism for its use of caffeine, which can cause physical dependence.[89] A link has
been shown between long-term regular cola intake and osteoporosis in older women
(but not men).[90] This was thought to be due to the presence of phosphoric acid, and
the risk was found to be same for caffeinated and noncaffeinated colas, as well as
the same for diet and sugared colas.
A common criticism of Coke based on its allegedly toxic acidity levels has been
found to be baseless by researchers; lawsuits based on these notions have been
dismissed by several American courts for this reason. Although numerous court
cases have been filed against The Coca-Cola Company since the 1920s, alleging
that the acidity of the drink is dangerous, no evidence corroborating this claim has
been found. Under normal conditions, scientific evidence indicates Coca-Cola's
acidity causes no immediate harm.[91]
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Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS)
as an ingredient. Originally it was used in combination with more expensive cane-
sugar, but by late 1984 the formulation was sweetened entirely with HFCS. Some
nutritionists caution against consumption of HFCS because it may aggravate obesity
and type-2 diabetes more than cane sugar.[92] Also, a 2009 study found that almost
half of tested samples of commercial HFCS contained mercury, a toxic substance.
In India, there is a major controversy whether there are pesticides and other harmful
chemicals in bottled products, including Coca-Cola. In 2003 the Centre for Science
and Environment (CSE), a non-governmental organization in New Delhi, said
aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including lindane,
DDT, malathion and chlorpyrifos — pesticides that can contribute to cancer and a
breakdown of the immune system. CSE found that the Indian produced Pepsi's soft
drink products had 36 times the level of pesticide residues permitted under European
Union regulations; Coca-Cola's soft drink was found to have 30 times the permitted
amount. CSE said it had tested the same products sold in the U.S. and found no
such residues.[94] After the pesticide allegations were made in 2003, Coca-Cola sales
in India declined by 15 percent. In 2004 an Indian parliamentary committee backed
up CSE's findings and a government-appointed committee was tasked with
developing the world's first pesticide standards for soft drinks. The Coca-Cola
Company has responded that its plants filter water to remove potential contaminants
and that its products are tested for pesticides and must meet minimum health
standards before they are distributed.[95] In the Indian state of Kerala sale and
production of Coca-Cola, along with other soft drinks, was initially banned after the
allegations, until the High Court in Kerala overturned ruled that only the federal
government can ban food products. Coca-Cola has also been accused of excessive
water usage in India.[96]
The 2008 Ig Nobel Prize (a parody of the Nobel Prizes) in Chemistry was awarded to
Sheree Umpierre, Joseph Hill, and Deborah Anderson, for discovering that Coca-
Cola is an effective spermicide, and to C.Y. Hong, C.C. Shieh, P. Wu, and B.N.
Chiang for proving it is not.
CriticismCriticism
Main article: Criticism of Coca-Cola
32
Coca-Cola has been criticized for alleged adverse health effects, its aggressive
marketing to children, exploitative labor practices, high levels of pesticides in its
products, building plants in Nazi Germany which employed slave labor,
environmental destruction, monopolistic business practices, and hiring paramilitary
units to murder trade union leaders. In October 2009, in an effort to improve their
image, Coca-Cola partnered with the American Academy of Family Physicians,
providing a $500,000 grant to help promote healthy-lifestyle education; the
partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians
and nutritionists.[100]
Use as political and corporate symbolUse as political and corporate symbol
Coca-Cola advertising in the High Atlas mountains in Morocco.
Coke dispenser flown aboard the Space Shuttle in 1996. (US)
The Coca-Cola drink has a high degree of identification with the United States, being
considered by some an "American Brand" or as an item representing America. The
identification with the spread of American culture has led to the pun "Coca-
Colanization".
The drink is also often a metonym for the Coca-Cola Company.
There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's
early investment in Israel during the Arab League boycott of Israel (its competitor
Pepsi stayed out of Israel).[102] Mecca Cola and Pepsi have been successful
alternatives in the Middle East.
A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus-
2 or FGBA-2) was developed for use on the Space Shuttle as "a test bed to
determine if carbonated beverages can be produced from separately stored carbon
dioxide, water and flavored syrups and determine if the resulting fluids can be made
33
available for consumption without bubble nucleation and resulting foam formation".
The unit flew in 1996 aboard STS-77 and held 1.65 liters each of Coca-Cola and Diet
Coke.[103]
SPEECH BY CHAIRMAN
Our workplace must be a place where everyone's ideas and contributions are
valued. Our employees deserve equal treatment under our policies governing
compensation, advancement, health, safety and other aspects of workplace life. We
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understand that fairness in the workplace, coupled with the opportunity to develop
individual capabilities, fosters our collective success.
Responsible stewardship of the environment is a top priority for The Coca-Cola
Company. By preserving and enhancing our natural world, we brighten the future for
our planet and for each other. We put this principle into practice through The Coca-
Cola Environmental Management System, known as eKOsystem. We operate our
business as stewards of the environment, with a commitment to continually move our
business toward sustainability: striving to consume fewer natural resources, and to
recover and reuse resources more extensively. Our commitment to protect the
environment extends throughout our organization, involving officers, managers and
employees at all levels. We are accountable for our actions, conducting
assessments of our environmental performance and taking action toward continuous
improvement in all that we do. Society advances on the strength of community:
people sharing their ideas and resources to reach common goals. We seek to
strengthen local communities worldwide through our support for education, through
partnerships with other organizations and through acts of citizenship by the people of
Coca-Cola.
We support education because of its power to expand opportunities for individuals
and increase understanding between cultures. We partner with national and
international organizations to alleviate economic disadvantage and help improve the
quality of life in local communities. Together with our local bottling partners, we
strengthen communities by giving with our hands and our hearts, as partners in the
promise of a better life.
There's never been a better time to be a part of The Coca-Cola Company. Our
people are dedicated to strengthening relationships with stakeholders and
communities. .
The Coca-Cola Company E.neville Isdell leads The Coca-Cola Company into the
new century with a firm commitment to the values and spirit of the world's greatest
brand. He was elected chairman and chief executive officer in February 2000 and is
the 11th person in the history of the Company to hold this title.
35
Under E.neville Isdell leadership, we have positioned The Coca-Cola Company for
growth, guided by our mission to provide branded beverages that refresh people
around the world, anywhere, any time, everyday. By moving key decision-making
closer to local markets, we have spurred innovation, accelerated growth and fostered
deeper connections to consumers. Simply put, we are closer than ever to you.
A talented and highly experienced worldwide management team coordinates our
new, nimble and entrepreneurial network.
Across more than 200 countries ... more than 100 languages ... a multitude of
cultures and geographies, The Coca-Cola Company strives to be a special part of
people's lives. This privilege comes with a responsibility. We have chosen to take a
leadership role, knowing that our differences make us stronger in our business and
in our communities - each and every day.
We embrace our commitment to diversity in all its forms at The Coca-Cola Company
as a core value. Diversity - of race, gender, sexual orientation, ideas, ways of living,
cultures and business practices - provides the creativity and innovation essential to
our economic well-being. Equally important is a highly motivated, healthy and
productive workforce that achieves business success through superior execution and
superb customer satisfaction.
In today's volatile economic environment, this kind of performance requires
unprecedented commitment to the principles of integrity and leadership. We are
intent on keeping that commitment.
Although Coca-Cola® was first created in the United States, it quickly became
popular wherever it went. Our first international bottling plants opened in 1906 in
Canada, Cuba and Panama, soon followed by many more. Today, we produce
nearly 400 brands in over 200 countries. More than 70 percent of our income comes
from outside the U.S., but the real reason we are a truly global company is that our
products meet the varied taste preferences of consumers everywhere.
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Bottling
One of our great strengths is our ability to conduct business on a worldwide scale
while maintaining a local approach. At the heart of this approach is our bottling
system.
Before any one of our nearly 400 brands is consumed by anybody around the world,
it has to be produced, packaged and distributed. Since we reach six billion
consumers in over 200 countries, our bottling system has to be the best.
Our bottling partners are local companies - some independently owned, some
partially owned by The Coca-Cola Company - so they are rooted in their
communities, thinking and acting locally. They are employers, purchasers of local
goods and services, good neighbors, and, of course, producers of the world's most
popular beverages.
It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance,
boats transport Coca-Cola® and our other brands between the many hundreds of
islands that make up that nation. In the Amazon, where the main road is often the
river itself, water-borne distribution is also common. In some of the higher elevations
of the Andes, Coca-Cola is sometimes transported by four-legged power. Across
much of Africa, bottlers deliver to thousands of family-run kiosks and home-based
stores on which local economies depend. Coca-Cola® originated as a soda fountain
beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system
developed that Coca-Cola became the world-famous brand it is today.
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
37
thanked him but took no action. One of his nephews already had urged that Coca-
Cola be bottled, but Candler focused on fountain sales.
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 the sum of one dollar. A third Chattanooga lawyer, John T.
Lupton, soon joined their venture.
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 product quality. By 1909, nearly 400
Coca-Cola bottling plants were operating, most of them family-owned businesses.
Some were open only during hot-weather months when demand was high.
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.
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.
1920s and '30s … International expansion
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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
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.
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.
1960s … New brands introduced
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.
1970s and '80s … Consolidation to serve customers
As technology led to a 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.
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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 … Think local, act local
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.
MARKET STRATEGY OF COCA COLA
Our local marketing strategy enables Coke to listen to all the voices around the world
skiing for beverages that span the entire spectrum of tastes and occasions. What
people want in a beverage is a reflection of which they are, where they live, how they
work and play, and how they relax and recharge. Whether you're a student in the
United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break,
a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after
a run together, we're there for you. We are determined not only to make great drinks,
but also to contribute to communities around the world through our commitments to
education, health, wellness, and diversity. Coke strives to be a good neighbor,
consistently shaping our business decisions to improve the quality of life in the
communities in which we do business. It's a special thing to have billions of friends
around the world, and we never forget it. Now if we talk about India. Coke has its
focus on the youth market in India. Real example of it is that they present their
product by star cricketer and bollywood stars to get the attention of youth. But now a
days coca cola is moving to rural market because it is the real market of India. When
Amir Khan started advertisement of coca cola and the tag line of this adds
“thanda matlab coca cola” was directly targeted rural area. And the
current situation is that they are very much successful in this target.
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COCA COLA CLOSE TO PEOPLE
The heart and soul of our enterprise have always been our people. Over the past
century, Coca-Cola people have led our success by living and working with a
consistent set of ideals. While the world and our business will continue to change
rapidly, respecting these ideals will continue to be essential to our long-term
success.
Nothing is more important to our success than integrity. This begins with insisting on
absolute quality for every one of our products, and acting with a strong sense of
accountability in everything we do.
Coca-Cola people have always known that building and nurturing our relationships
with other people and the world around us is an essential part of our work. No matter
how big or complex our business becomes, we must always demonstrate complete
respect for each other. As the world becomes more interconnected, yet more firmly
rooted in local pride, recognition of our interdependence with our stakeholders
becomes even more essential.
A large part of our relationship with the world around us is our relationship with the
physical world. While we have always sought to be sensitive to the environment, we
must use our significant resources and capabilities to provide active leadership on
environmental issues, particularly those relevant to our businesses.
As we have expanded over the decades, our company has benefited from the
various cultural insights and perspectives of the societies in which we do business.
Much of our future success will depend on our ability to develop a worldwide team
that is rich in its diversity of thinking, perspectives, backgrounds and culture. Coca-
Cola is the world's most inclusive brand, and Coca-Cola must also be the world's
most inclusive company.
COCA COLA GUIDING PRINCIPLE FOR CITIZENSHIP
41
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.
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.
:::: Strengthen the community::::
We will seek to improve the quality of life through locally-relevant initiatives wherever
we do business.
Coca-Cola in India - Products & Quality
42
Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the
Company's international family of brands including Coca-Cola, Diet Coke, Sprite
and Fanta, plus the Schweppes product range.
Our Kinley water brand was launched in 2000 In 2001, our energy drink Shock and
our first powdered concentrate, Sunfill, hit the market Annual per capita consumption
of soft drinks in India is nine 8-ounce servings In early 2003, Coca-Cola India
collected Advertiser of the Year and Campaign of the Year awards for the Thanda
Matlab Coca-Cola all-media campaign
In early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of the
Year awards for the Thanda Matlab Coca-Cola all-media campaign The Coca-Cola
system adheres not only to national laws on food processing and labeling, but also to
our own strict standards for exceptional quality In everything we do, from the
selection of ingredients to the production of our beverages and their delivery to the
marketplace, we use our specialised quality management system, The Coca-Cola
Quality System, to ensure that we are offering consumers only the highest quality
products We monitor our success through our customer and consumer feedback and
our in-trade monitoring programmes, and this information enables us to continuously
improve our already demanding systems.
From source water to soft drink bottle
A t T h e C o c a - C o l a C o m p a n y ,
t h r o u g h o u r g l o b a l l y a c c e p t e d
a n d v a l i d a t e d m a n u f a c t u r i n g
p r o c e s s e s a n d Q u a l i t y
M a n a g e m e n t S y s t e m s , w e
e n s u r e t h a t o u r
m a n u f a c t u r i n g f a c i l i t i e s a r e
e q u i p p e d t o p r o v i d e t h e
c o n s u m e r w i t h t h e h i g h e s t
p o s s i b l e q u a l i t y b e v e r a g e
e a c h t i m e . L e t u s n o w t a k e
y o u t h r o u g h t h e p r o c e s s e s
a n d Q u a l i t y A s s u r a n c e
P r o g r a m m e s f o l l o w e d b y o u r
43
w o r l d - c l a s s m a n u f a c t u r i n g
f a c i l i t i e s i n I n d i a .
Even before the plant is constructed, the site is selected based on the availability of
source water meeting the potability quality standards. At all our carbonated and non-
carbonated soft drink manufacturing locations, the source water is tested for all
requirements of potable drinking water. The analysis is always conducted by
independent third party accredited laboratories. The source water is then properly
protected and re-tested periodically to ensure conformance to potability standards.
The water is then drawn through sealed pipelines into the storage tanks in secured
water treatment areas of the manufacturing plant..
1. The first step in the manufacturing of soft drinks is the disinfection of water
using the globally approved procedure of chlorination. This treatment ensures
the destruction of microorganisms including pathogens and oxidation of heavy
metal ions and organic impurities.
2. The second step is the filtration at the molecular level, which is achieved
either by coagulation/flocculation or reverse osmosis. Contaminants
commonly removed by this process include:
- Dirt, clay and any other suspended matter in the water.
- Microbial matter (including bacteria, yeast, moulds, virus, protozoa).
Heavy metals and compounds which may cause an off-taste
- When coagulation/flocculation is used, colloidal materials and
suspended particles are removed by settling plus enhanced filtration
through multi-media. If needed, alkalinity reduction may also be
achieved by lime softening or ion exchange filters.
3. The third step to stop potential contaminants is water purification using
granular activated carbon filters. The granular activated carbon, with its large
and porous surface area, ensures effective removal of trace levels of organic
44
compounds (including pesticides and herbicides), colour, off-taste and odour-
causing compounds using the principle of absorption.
4. T h e l a s t s t e p i s p o l i s h i n g
f i l t r a t i o n , w h i c h i s
p a s s i n g w a t e r t h r o u g h h i g h
e f f i c i e n c y 5 - m i c r o n f i l t e r s
t o e n s u r e e v e r y d r o p o f
t r e a t e d w a t e r i s f r e e f r o m
a n y a c t i v a t e d c a r b o n f i n e s
a n d i s s a f e f o r u s e i n
5. S i m i l a r t o t h e s t r i n g e n t
n o r m s u s e d f o r w a t e r , w e
b u y h i g h - g r a d e s u g a r f r o m
a u t h o r i z e d s u g a r m i l l s i n
I n d i a a n d t h i s i s t r e a t e d
w i t h a g l o b a l l y a c c l a i m e d
c a r b o n t r e a t m e n t w h i c h
r e m o v e s a n y i m p u r i t i e s a n d
i s t h e n u s e d f o r t h e
p r e p a r a t i o n o f p u r i f i e d
s u g a r s y r u p . T h i s s u g a r
s y r u p i s t h e n b l e n d e d w i t h
t h e s o f t d r i n k c o n c e n t r a t e .
Carbon-dioxide from authorised suppliers meeting international purity standards
is procured, which goes through stringent quality control checks before being
used in the beverage process.
The three ingredients of syrup, treated water and carbon-dioxide are blended as per
The Coca-Cola Company's specifications.
The glass bottles returned from the market are thoroughly cleaned and sanitised with
specially formulated cleaning agents at high temperature that use sophisticated
state-of-the-art Bottle Washers or Bottle Rinsers (in case of PET). These bottles are
then transported to the filler using a fully automated conveyor system after a
thorough visual inspection. The beverage is then filled into glass containers or virgin
45
food grade PET bottles using a high-speed automated filling machine. The entire
filling operation is fully automated and untouched by human hands.
The bottles are finally capped/crowned, date coded and packed into crates/cartons
to make them available to our consumers.
The complete manufacturing process has a well defined and structured Quality
Control and Assurance Programme. All the manufacturing facilities employ qualified,
experienced and trained professionals for manufacturing and testing of our products.
Routine tests carried out by bottling operations and external laboratories:
An employee operates a proportioner, where the syrup, carbon-dioxide and water
are blended.
Analysts examine water samples using a UV spectrophotometer.
All the bottling facilities follow the Good Manufacturing Practices requirements as
applicable to the food industry. All manufacturing equipments fulfills the stringent
requirements of GMP and sanitary design.
The entire quality management system of each plant is documented, managed and
continually improved through a world-wide accepted system of TCCQS (The Coca-
Cola Quality System).
The Company also has a strong internal audit system to monitor compliance to
international and local standards. The manufacturing facilities also get audited by
accredited external audit agencies against quality management standards.This
internal checks and balances system works virtually in every aspect of our business
and gives us the confidence to reassure our promise to consumers every day.
At The Coca-Cola Company, we are committed to delivering high quality products to
our customers and consumers throughout the globe. Each and every time.
Pr No
46
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48
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10 External Lab
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44
1
The Power of knowledge
O n e o f I n d i a ' s g r e a t e s t
m a l a d i e s , p o v e r t y , i s b o t h a
c a u s e a n d e f f e c t o f p o o r
e d u c a t i o n a n d w i d e s p r e a d
i l l i t e r a c y . C o c a - C o l a I n d i a
a c t i v e l y s u p p o r t s g o v e r n m e n t
e f f o r t s t o e x t e n d e d u c a t i o n a l
o p p o r t u n i t i e s t o
u n d e r p r i v i l e g e d s e c t i o n s o f
s o c i e t y , f o r m i n g p a r t n e r s h i p s
w i t h l o c a l n o n - g o v e r n m e n t a l
o r g a n i s a t i o n s ( N G O s ) a n d
c o m m u n i t i e s t o a d d r e s s t h e
i s s u e .
This has resulted in a variety of educational initiatives in slums and villages,
including non-formal education, remedial education, vocational training, and IT
training.
Several of India's leading NGOs - including Child Relief and You (CRY), Pratham,
Prayas, Naandi Foundation and Literacy India - help identify areas lacking in primary
educational facilities.
49
NGOs design the projects so they require minimum recurring expenses, and help
ensure community participation. Coca-Cola serves as the overall project facilitator
and provides financial support and continuous supervision, and employees also
volunteer their time and resources.
Communities contribute infrastructure and daily supervision and also form self-help
groups, nominating volunteers to help lead classes.
The various initiatives have included support towards eight Jagriti
(Awakening) Learning Centres (JLCs), which provide educational resources and
opportunities for nearly 2,000 underprivileged primary school children in areas near
Coca-Cola offices and bottling plants.
The Company is also working with community leaders to put on street plays on
themes of community awareness, such as a series in 50 villages in Gurgaon that
reached almost 500,000 villagers.
Cola and the Battle for Safe Water
Water harvesting is the buzzword. Millions of rupees are being sunk to promote
water harvesting. And at the same time, licenses are being issued to private
companies to not only exploit ground water but to go in for 'water mining'. In the past
few years, for instance, the number of golf courses has multiplied in and around the
major metros in India and at the same time more and more bottling plants for soft-
drinks are being set up. The basic objective being very clear: let the average
consumer conserve water for the benefit (and luxury) of the rich and the elite!
In India, as the prestigious fortnightly Down to Earth estimates that the ever-swelling
numbers of urban consumers who are hitting the (soft-drink) bottle and the
increasing ability of the beverage manufacturers to penetrate the rural market have
ensured that sales and revenues head north. According to market sources, the soft-
drink industry was estimated at 6.5 billion bottles in the year 2000 and volumes have
been increasing at 14-15 per cent per annum since then.
"An international soft drink association put the market size of the soft-drink sector in
India at about 1.4 billion litres in 1998. Producing this quantity would require a
staggering 5.6 billion litres of water. Most of this is extracted from groundwater
50
resources. Assuming that the per capita consumption of water is 30 litres per day,
the water consumed annually by the soft-drink industry is enough to meet the water
needs of more then 5 lakh people (say, for the district of Bolangir in Orissa, which is
chronically drought hit) for a year."
In Kerala, marketed by the State tourism as God's own country, an NGO
"Jananeethi" is waging a lone battle against the excessive extraction of groundwater
and the resulting deterioration of water quality caused by Hindustan Coca-Cola
Beverages Pvt Ltd -- a local unit of the multinational soft-drink giant. The resulting
impact on agriculture in the region has been very well documented.
Distribution Network
Mansarovar
Vidhyadharnagar
Shastrinagar
Malviya Nagar
Adarsh Nagar
Tonk road
Ajmer Puliya
Banipark
51
Station road
M D road
Dadi ka Phatak
Jhotwara
DISTRIBUTION PROCESS
The Coca-Cola soft drinks are produced in the Plants at Kaladera. Here products are
supplied to the warehouse. From warehouse; the products are distributed through
direct & indirect routes.
Direct Routes: Means direct supply from producer to supplier.
Indirect Routes: Indirect routes are those in which the products are supplied to the
distributors appointed to the different areas. The distributors then distribute products
52
in their own trucks or tampoos to the retailers. Finally retailers serve the products to
the factory
PRODUCTION PROCESS
INGREDIENT DELIVERY
Ingredients are not the only things delivered to the plant. Other materials such as
bottles, canes, labels & packaging are also delivered. Many plants outside the United
States use refillable bottles for economic reasons, while in the United States they do
not. When bottles & canes are delivered to the plant, they are carefully inspected to
ensure that they meet our exacting standards. One these have passed initial
inspection, they move on to be washes and/or rinsed.
SWEETNER
Supplied by selected producers, a variety of sweeteners plays a central role in
creating in our beverages. Sweetener vary by location & range from sucrose (table
sugar) and high-fructose starch syrup to low calorie products such as aspartame,
which is often use in the USA with diet beverages and acesulfame-K, which is often
soused in European countries with light beverages.
WATER
Since water is key component to all our beverages, its quality is critical. 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 our bev
erages, it’s rigorously filtered & cleanses. We then continuously sample the water to
ensure it meets our standards.
WASHING & RINSING
53
To ensure quality, each bottle is washed, sanitized & rinsed before being filled. While
this sounds simple, the actual steps can differ per bottling plant. Outside the United
States many plants use refillable glass or plastic bottles. To be ensuring they meet
our cleanliness standards, bottles are first hit with pre-rinse jet which removes any
dirt or debris. They are then soaked in a high temperature deep cleaning solution
that removes any remaining direct and sanitizes them. The bottles then moves to
“hydro wash” where they are washed again with a deep cleaning pressure spray.
Finally, the bottles are rinsed with cooling water jets before being visually and/or
electronically inspected. In the United States, we primarily use new bottles, not
refillable once. This allows the washing & rinsing steps to move much more quickly.
MIXING & BLENDING
H2O:
Mixing & blending begins eighth the simple step of mixing pure water with
refined sugar, which creates simple syrup. While in some countries measuring the
correct amount of sugar is done by batch, in many North America and European
plants measurements are made using continuous blending systems.
SECRET FORMULA
Our secret formula is….still secret! That right, the secret formula remains a mystery
to the millions of people in nearly 200 countries who enjoy our refreshing beverages
every day. Even through cannot tell you the secret, you can be sure that “Life Tastes
Good” with Coca-Cola.
H2O & SYRUP
Uncorroborated beverage. However, the water and syrup must be mixed in right
ratio. This done by the With the syrup nearing its final state, we mix it with pure
water, creating the finished beverage proportioning equipment. It accurately
measures the correct ratio for each and this mixture to the carbonator.
Co2 ADDED
Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverage.
Carbon dioxide not only gives our beverages their effervescent zest, but it also adds
54
to the distinctive and familiar taste everyone has come to expect from our
beverages.
FILLING
Once all the ingredients have been mixed and blended and the bottles have been
cleaned and sanitized, were ready to start filling. This is a surprisingly complex
process requiring precision at each step. To begin with, bottles must be carefully
timed as they move to the filler synchronization is key. Once at the filler, bottles are
either held securely in place by flexible grippers or precisely placed under filling
valves by centering devices. Before the bottles can be filled, the inside of the bottle
must be pressurized. This allows for the force of gravity itself to draw the beverage
into the bottle-a process that ensures the smooth flow of liquid, with little to no
foaming.
CAPPING
Once filled, bottles are then capped. We use different caps for different bottles-glass
bottles are usually topped with a metal crown while plastic bottles are primarily
topped with a plastic screw top. Each can type than moves through different parts of
the
machine, which ensures each cap stay scratch free and is in the right position to be
precisely placed on the bottle. As quality and freshness is key, we use a “no-closure”
detector during the capping process and a “go-no-gauge” or “torque meter” after the
bottle has been capped the no closure detector checks if a screw to or crown has
been placed on a bottle. The process actually stops if the detector doesn’t find a
closure. The “go-no-gauge” checks for the proper crown crimp and the torque meter
check make sure the screw top are good and tight.
LABELLING
Once the bottles have been filled and capped, they move on to be labeled. A special
machine dispenses labels from large rollers cuts them and places them on the bottle.
For special labels such as commemorative bottles for football championship, the
labels are send to the bottling plants from approval, and then used for packaging.
Depending on the occasion, some of these special bottles will go only to specific
55
locations. For examples, a national football championship bottle will be sent only to
the home town or state of the championship team.
CODING
The bottle is now ready to be coded. Each one of our beverages is marked with a
special code that identifies specific information about it. Some codes simply identify
their date the beverage was bottle or caned. Some come in the form of a date stamp
while other codes are much more complex. These codes identify the day, month,
shift and plant in which the beverage was made and use a combination of letters a d
numbers. You cannot see code on your container. It is because some bottlers use
invincible ink that can only we reed with special technology.
INSPECTION
We respect bottles at many points during the process with refillable bottles, it
happens when they are first bottles plant. They are also inspected after they are
washed and are filled; inspectors look for external bottle important and make sure
each bottle has the right amounts the beverage. White for a substitute for a human
inspector we also use bottles inspection machine. When inspecting empty bottles,
the machine shoots a strong light beam and through the bottom of the bottle to light
collector variation in the light mean that bottle must be discarded. Once the bottle is
filled, some plant deft whether the exact among of beverage has been fitted the
bottle. If no these are discarded. Even after fitting samples bottles for analysis in its
lab. to ensure quality is upto standard.
Once our filled beverages have passed final inspection, they are ready to package
for delivery. Generally, packaging can refer to everything from the unique bottle and
can designs, to label designs, to cardboard boxes and containers, to plastic rings.
Because the needs and tastes of our consumers are so diverse, the packaging
varies depending on where the beverages are being sent. In order to make sure the
freshest beverages possible get to you each warehouse must efficiently manage the
thousands of beverages cases produced each day. Beverage organization is key,
though it is the bottle and cane coding that allow for the necessary precision. From
the warehouse, we load beverages on to our distinctive trucks. Night and day, or
trucks are delivering our refreshing beverages to stores, soda fountains and vending
machines near you.
56
PRICING STRATEGIES
All the pricing strategies are set by the coca-cola India. The company announces
all the prices of the product line all the franchise companies are bound to follow the
decisions of the company regarding the product prices. Local company just decides
and schemes, which are to be given to the distributors and schemes, which are to
the distributors. They decide the discount considering their distribution cost and other
incurred costs in delivering the product
57
CHAPTER 2
INTRODUCTION TO THE ORGANIZATION
2. INTRODUCTION TO THE ORGANIZATION
Coca Cola in India-
After a 16 years absence, coca cola returned to India on October 26,1993 with its
launch in Agra. An engagement in March 1993 with the Parle Group gave the
company instant ownership of the nation’s top soft drinks brands, with access to
parley’s 53-plant bottling network, and a base for rapid introduction of the company’s
international brands. This network remains India’s largest soft drink bottling and
58
distribution infrastructure, reaching out too Indian consumers through a universe of
over 8000000 retail outlets spread across the country. As the leading producer and
marketer of soft drinks in India, the company leads the flavored, carbonated soft
drink market . the Coca-cola Company’s products in India include the company’s
international brands- Coca cola, sprite and fanta, as well as India’s leading soft drink
brands, Thumps Up Limca and Maaza- brands acquired from the Parle Group in
1993
Brands in India:-
1. Coca-Cola
2. diet Coke®
3. Sprite®
4. Fanta®
5. Schweppes
6. Thums Up®
7. Limca®
8. Maaza®
9. Citra™
10.Gold Spot®
11.Kinley™ water
12.Sun fill™ concentrate
13.Shock™
14.RIMZIM®
Bottling Information
The Coca-Cola Company received approval from the government in July 1996 to set
up a holding company to invest US$700 million in downstream operating subsidiaries
to engage in the preparation, packaging, sale and distribution of beverages.
In July 1997, the holding company was permitted by the government to
operationalize its bottling subsidiaries.
The bottling subsidiary currently owns and operates twenty-six bottling plants and
sixty distribution centers across India. In addition, it uses 20 contract packers to
59
augment its production capacity and cater to the increasing demand for its wide
portfolio of beverages.
To reach India's 300 million soft-drink consumers, the company distributes its
products in over 700,000 retail outlets, serviced via trucks, converted three-wheelers,
tricycles and pushcarts.
Employment/Economic Impact
The Coca-Cola system in India directly employs over 7,000 workers. For every direct
job in the system, seven indirect jobs are created in the supply chain.
Over the past nine years, The Coca-Cola Company has invested US$827 million in
India, US$805 million of which has been invested in its bottling subsidiary.
Community Involvement
The Coca-Cola Company in India supports eight Jagriti (Awakening) Learning
Centers (JLC), managed by India's well-known organizations, such as CRY,
Pratham, Prayas and Literacy India. The program provides education at the primary
level to underprivileged children, as well as computers and training for teachers.
Over 1,800 students per year have benefit from the program.
Working with state and district governments, our company provides support to
primary health centers in areas where our bottlers are located.
In 2002, in partnership with The St. John's Ambulance Brigade (Associate of Red
Cross), we conducted health camps for those who live in poverty-stricken urban
areas to sensitize the community on pertinent issues such as HIV/AIDS,
communicable diseases, immunization, hygiene and sanitation, and reproductive
and child health. Free health check-ups and medicine were provided, with over
10,000 people benefiting from the campaign.
The company supports a rainwater harvesting project as part of a major government
initiative to combat water scarcity and reduce ground water tables across the
country. We are analyzing options for rainwater harvesting at our major bottling
plants. Along with the Resident Welfare Association of Greater Kailash, our company
installed four rainwater harvesters. The Chief Minister of Delhi unveiled one of the
rainwater harvesting units in a dedication to local residents.
60
Several of our bottling plants provide safe drinking water to local villagers through
the organization of water tankers, bore wells and hand pumps.
The company has funded India's first national polio eradication drive, as well as a
national drought relief program.
Sponsorships
The company sponsors a unique national radio program for women called "The HER
Show" (Health Education and Recreation). The 30-minute weekly program informs
and educates housewives on primary health and education issues.
We sponsored a one-day "Mother & Child Health district Mela" in Ghaziabad.
Several hundred women and children from five villages received free medical check-
ups and consultation.
With a large work force complemented by a vast network of indigenous suppliers ,the
company not only contributes to the development of the soft drink industry ,but to the
development of related industries and the economy as a whole.
Over the past 5 years , coco-cola India has led the Indian Soft drink industry through
a series of innovative industry initiatives . These include upgradation of technical
infrastructure and talent ,enhancement of quality standards , improvement in the
distribution systems and stimulation of local entrepreneurs in the marketplace to the
benefit of the consumers.
HINDUSTAN COCA COLA BEVRAGES PVT. LTD.
Industry: Consumer product / FMCG products HINDUSTAN COCA COLA
BEVRAGES PVT. LTD.
Types of Company: Private Limited Company, Foreign Based Company
Location:
Sales Office: A-164, SECTOR 63, NOIDA (NCR)
Plant: RIICO INDUSTRIAL AREA, KALADERA TEHSIL CHOMU, JAIPUR.
61
FEW WORDS ABOUT THE COMPANY
Every person who drinks a Coca-Cola enjoys a moment of refreshment and shares
an experience that millions of others have served. All of those individual experiences
combined have created a worldwide phenomenon – a truly global brand. On the
distribution front, 10-tonne trucks, open-bay three wheelers that can navigate the
narrow alleyways of Indian cities, ensure availability of our brands in every nook and
corner of the country.
HISTORY
Coca-Cola Company, nourishing the global community with the world’s largest
selling soft drink since 1886, returned to India in 1993 after a gap of 16 years 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 brands and bottling network. No
wonder, our brands have assumed an iconic status in the minds of the consumers.
Coca-Cola serves in India some of the most recalled brands across the world
including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up, Limca,
Sprite Maaza and Kinley (packaged drinking water and soda), Minute Maid Nimbu
Fresh.
Bottlers
In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or
produce) syrup concentrate which is then sold to various bottlers throughout
Pharmacist John Smith Pemberton in 1886. The Coca-Cola formula and brand was
bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.
Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400
brands in over 200 countries or territories. The company operates a franchised
distribution system dating back to 1889 where TCCC only produces syrup
62
concentrate which is then sold to various bottlers throughout the world who hold an
exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its
stock is listed on the NYSE and is part of DJIA and S&P 500
All India Division COBO’s are now ISO 14001 certified
All 25 of the Divisions 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.
Strict division compliance with EKO system ensured that the bottling plants were
ready to meet the tough evaluation criteria and standards of the ISO auditors.
RIGHT EXECUTION DAILY (R.E.D.)
R.E.D. is the survey method that company started earlier. For the survey of R.E.D.,
Company had hired the person A.C. Nielson one of the best survey company. This
survey gets done once in a month. R.E.D. is the set of norms divided into outlet wise.
ABOUT THE R.E.D. SURVEY
The survey named as R.E.D. (Right Execution Daily).
The survey has been conducted to check the cooler management, availability
of products & activation of coca-cola in various outlets.
THE SURVEY WAS BASED ON THREE TOPICS
63
Firstly, I have to check the cooler management i.e. the customer, are properly
managed/working or not. And lastly the most important aspect of cooler
management was the brand order.
Secondly, I have to check the availability of the product i.e. whether the
product is available to the customer or not.
Lastly, I have to check the activation, which is a very important because
activation helps to boost the sales. Activation is done through boards i.e. glow
sign. DPS, Flanges and Combo Boards. Mostly combo boards are given to
the E & D outlets. And is very helpful in attracting the customers. Racks with
header are provided to the Grocery outlet, which should be fully charged.
Right Execution Daily (R.E.D.) is the diversification of outlets as Channel, Class. Let
us know what are the Channel and Class respectively.
PRODUCTS AND BRANDS
Diet Coke
It was introduced in 1982 to offer an alternative to dieters worried about the
64
high number of calories present in regular Coca-Cola.
The Coca-Cola Company offers nearly 400 brands in over 200 countries,
besides its namesake Coca-Cola beverage. This includes other varieties of
Coca-Cola such as:
Diet Coke (introduced in 1982), which uses aspartame, a synthetic
phenylalanine-based sweetener in place of sugar
Diet Coke Caffeine-Free
Cherry Coke (1985)
Diet Cherry Coke (1986)
Coke with Lemon (2001)
Diet Coke with Lemon (2001)
Vanilla Coke (2002)
Diet Vanilla Coke (2002)
Coca-Cola C2 (2004)
Coca-Cola Black Cherry Vanilla (2006)
Diet Coca-Cola Black Cherry Vanilla (2006)
Coca-Cola BlāK (2006)
Diet Coke Plus (2007)
Coca-Cola Orange (2007)
Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a
sugar substitute. Introduced in 1963, the product is still sold today, however its sales
have dwindled since the introduction of Diet Cok
Type Cola
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1977
65
Related products Coca-Cola, Pepsi, Campa Cola
Thums Up is a carbonated soft drink (cola) that is very popular [citation needed] in
India, where its bold, red thumbs up logo are common. It is similar in flavor to other
colas but has a unique taste reminiscent of betel nut. Introduced in 1977 to offset the
expulsion of The Coca-Cola Company and other foreign companies from India,
Thums Up, Limca, and Campa Cola gained nationwide acceptance. The brand was
bought out by Coca-Cola who later re-launched it to fight against Pepsi after
unsuccessful attempts at brand killing.
Background
During late 1970s, the American cola giant Coca-Cola was banned by the Indian
government. Following this, the Parle brothers, Ramesh Chauhan and Prakash
Chauhan, along with then CEO Bhanu Vakil, launched Thums Up as their flagship
drink, adding to their portfolio of older brands Limca (lime flavour) and Gold Spot
(orange flavored). Thums Up was basically a cola drink, but the company never
claimed it as such. The formula was just as closely guarded as the famous Coke
formula. During the same time, the owners of Coca-Cola’s bottling plant, Pure Drinks
Ltd., launched Campa Cola and Campa Orange, both of which had a higher dose of
carbon dioxide.
The Thums Up logo was a logo showing a red thumbs up hand gesture with a
slanted white serif typeface. This would later be modified by Coca-
Cola with blue strokes and a more modern-looking typeface. This was mainly done
to reduce the dominant red color in their signage.
The picture shows the thums up mountain or thums up pahaad (in Hindi)manmade
hills which has a natural top like thums up logo and is a popular sight from trains .Its
famous caption until the early `80s was, “Happy days are here again”, coined by then
famous copywriter Vasant Kumar, whose father was spiritual philosopher U. G.
Krishnamurti. Later it was changed to "Taste the thunder!”.
Market
66
Thums Up enjoyed a near monopoly with a much stronger market share often
overshadowing its other rivals like Campa cola, Double seven and Dukes, but
there were many small regional players had their own market. It even withstood
liquor giant United Breweries Group (makers of Kingfisher Beer) McDowell’s Crush,
which was another Cola drink and one more Double Cola.
It was one of the major advertisers throughout the 80’s. In mid-80’s it had a
brief threat from a newcomer Double Cola which suddenly disappeared within a few
years.
In 1990, when Indian government opened the market to multinationals, Pepsi
was the first to come in. Thums Up went up against the international giant for an
intense onslaught with neither side giving any quarter. With Pepsi roping in major
Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased
its spending in the Cricket sponsorship. Then the capacity went from 250ml to
300ml, aptly named Maha Cola. This nickname gained popularity in smaller towns
where people would ask for "Maha Cola" instead of Thums Up. The consumers were
divided where some felt the Pepsi’s mild taste was rather bland.
In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to
1993. But Coca-Cola’s entry made things even more complicated and the fight
became a three-way battle. That same year, in a move that baffled many, Parle sold
out to Coke for a meager US$ 60 million (considering the market share it had). Some
assumed Parle had lost the appetite for a fight against the two largest cola brands;
others surmised that the international brands seemingly endless cash reserves
psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke has a habit of
killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its
cola in cans which was all the rage in India, with Thums Up introduced alongside,
albeit in minuscule numbers. Later Coca-Cola started pulling out the Thums Up
brand which at that time still had more than 30% market share.
Re-launch
Despite its strong overall equity, the brand was losing its popularity among the core
cola drinking age group of 12 to 25 year olds, partly due to nil advertising. Coca-Cola
apparently did try to kill Thums Up, but soon realized that Pepsi would benefit more
than Coke if Thums Up was withdrawn from the market. Instead, Coke decided to
use Thums Up to attack Pepsi. The Coca-Cola Company by this time had about
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60.5% share of the Indian soft-drink market but much to its dismay found out that if it
takes out Thums Up, it would remain with only 28.72% of the market (according to a
report by NGO Finance Trade in India), hence again dusted out the Thums Up brand
and re-launched targeting the 30 to 45 year olds.
The brand was re-positioned as a “manly” drink, drawing on its strong taste
qualities. Known to be a strong drink with more power packed into it than other colas,
it was a favorite in Rum based Cocktails and the byword “rum and Thums Up.”
Hence Thums Up kick-started an aggressive campaign directly attacking Pepsi’s
television advertisement, focusing on the strength of the drink hoping that the
depiction of “adult” drink would appeal to young consumers.
“Grow up to Thums Up” was a successful campaign. The brand’s market share and
equity soared northwards. The brand was unshakeable and Coca-Cola’s declaration
that Thums Up was India’s premier cola brand in terms of market share did not
surprise many.
Other campaigns from Thums Up’s build on the “strength” of its cola and build
associations as a macho drink. Ads showing the Thums Up man, riding through the
desert in search of a cantina that sells Thums Up rather than drink another cola, stick
in the minds of many Indians and caught the imagination of youngsters who want to
be seen as men.
Sponsorship and Souvenirs
Thums Up was one of the major sponsors in the Cricket Matches. In early 80’s it
came out with several postcards featuring Sunil Gavaskar and Imran Khan. Parle’s
southern bottler was a major sponsor in the Indian motor sport scene in 80’s; to
several Indian track drivers in Sholavaram races and also to several regional Car
and Bike rallies. Today old Thums Up souvenirs and stickers have become
Limca
Limca is a lemon and lime flavored carbonated soft drink made in India and certain
parts of the U.S. It is less bubbly than its American counterparts like Seven Up and
Sprite, and it has a slight flavor of ginger. In 1992, when the government allowed
Coca-Cola to return, at the same time as it admitted Pepsi for the first time, Coca-
Cola bought Limca, Thums Up, Maaza and other drink brands.
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Like other sodas, Limca is generally sold in glass bottles within India,
Type Lemon-lime soda
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1977
Limca is a lemon and lime flavored carbonated soft drink made in India and certain
parts of the U.S. It is less bubbly than its American counterparts like
Seven Up and Sprite, and it has a slight flavor of ginger.
In 1992, when the government allowed Coca-Cola to return, at the same time as it
admitted Pepsi for the first time, Coca-Cola bought Limca, Thums Up, Maaza and
other drink brands.
Like other sodas, Limca is generally sold in glass bottles within India, which are
returned to the store or restaurant after the contents have been drunk. The bottles
are sent back to the manufacturer, washed and reused, because they are more
expensive than the soda itself.
Rates and sizes
2.25 ltr. plastic bottles cost Rs.60
1.25 ltr. plastic bottles cost Rs.33
600ml plastic bottles cost Rs. 22
300ml glass bottles cost Rs. 12
200ml glass bottles cost Rs. 8
Limca also publishes the Limca Book of Records, a record book similar to the
Guinness Book of Records. The Limca Book of Records details feats, records and
other unique statistics from an Indian perspective.
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One of Limca's original and very popular taglines was "Limca. It's very very Lime
& Lemoni." In India reigning top Hindi film actress and actors are generally chosen
as models for the product.
Sprite
Type Lemon-lime
Manufacturer The Coca-Cola Company
Country of origin Germany
Introduced 1961
Sprite is a clear soda, lemon-lime flavored, caffeine free soft drink, produced by the
Coca-Cola Company. It was introduced to the United States in 1961. This was
Coke's response to the popularity of 7 Up, which had begun as "Lithiated Lemon" in
1929. It comes in a primarily green and blue can or a green transparent bottle with a
primarily green and blue label.
History
Originating in Germany as Fanta Klare Zitrone ("Clear Lemon Fanta"), Sprite was
introduced to the United States in 1961 to compete against 7-Up. In the 1980s, many
years after Sprite's introduction, Coke pressured its large bottlers that distributed 7
Up to replace the competitor with the Coca-Cola product. In large part due to the
strength of the Coca-Cola system of bottlers, Sprite finally became the market leader
position in the lemon-lime soda category in 1989
Global naming Sprite, as a lemon-lime soda, is referred to by consumers around the
world in a variety of ways. It is called lemonade in Australia and New Zealand. In
Ireland and Canada, Sprite and 7-up are interchangeable and, when asked, a person
may say Sprite or 7-up to mean the same drink. In South Africa, Sprite and
Schweppes Lemonade are almost interchangeable. In some parts of Switzerland,
Sprite (or any other type of lemonade) is also known simply as Citra.
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Fanta
Type Soft drink
Manufacturer The Coca-Cola Company
Country of origin Germany
Introduced 1940
Fanta is a global brand of fruit-flavored soft drink from the Coca-Cola Company.
There are over 115 flavors world-wide; however, most of them are only available in
some countries. The brand was originally introduced in Germany in 1940, and was
purchased by Coca-Cola in 1960. Today it is available in 180 countries.
History
In 1940 Fanta was created by the German chemist Schetelig during World
War II in Germany, by the German Coca-Cola bottling company in Essen. Due to
war time restrictions on shipping between Germany and the United States, the
German bottling plant could not get Coca-Cola syrup. The CEO of the plant, Max
Keith, needed a product to keep the plant in operation and devised a fruit flavored
drink made from available ingredients.
Using apple fiber remaining from cider pressing and whey, a byproduct from
cheese manufacture,
Fanta was created and became quite popular. The original German Fanta had
a yellow color and a different flavor from that of Fanta Orange. The flavor varied
throughout the war, depending on the ingredients used.
The name 'Fanta' was coined during an employee contest to name the new
beverage. Keith told them to let their Fantasy (German for "imagination") run wild.
On hearing that, salesman Joe Knipp spontaneously arrived upon the name Fanta.
After World War II, Fanta was introduced to the United States by Coca-Cola,
and in 1960 they bought the trademark. Fanta Orange is the most popular Fanta
flavor, available in 180 countries. In terms of volume, Brazil is the largest consumer
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of Fanta in the world. Fanta remains more popular in Europe and South America
than in the United States.
Primary competitors to Fanta have included Tango, Orangina, PepsiCo's Slice
and Tropicana Twister.
In some markets, Coca-Cola also has spun off various diet Fanta varieties
including Fanta "Z" and Fanta Zero Orange.
Ingredients
The composition of Fanta, for the same flavor, varies from country to country. For
example, the European Fanta Orange has orange juice (in variable percentages),
whereas the US formulation does not. The Australian version contains 5% fruit juice,
and South American formulations also have orange juice, especially in Brazil, where
it contains 10% of orange juice. These differences mean the taste of Fanta differs
greatly from country to country, more so than regular Coca Cola, and may in part
explain why the drink's popularity varies so much between different countries.
Fanta in other countries
There are over 70 different flavors world-wide. For example, in Romania (and some
other countries), there is "Fanta Shokata" based on the traditional Romanian and
Balkan drink Socata made from elderflower (a wordplay between "soc"- elderberry in
Romanian- and "shock"). In Switzerland and the Netherlands the local fruit,
blackcurrant is used to produce Fanta as well. Some identical flavors have different
names in different markets. The classic orange, for example, was rebranded "Fanta
Funky Orange" in 2003 for the Nordic countries and Belgium, and to 'Fanta Original
Orange' in the Netherlands while other countries retain the older "Fanta Orange"
brand. As of the year 2005, the Fanta brand has been connected with the word
Bambaacha (or Bamboocha), which is often seen in the Fanta commercials. Tab diet
Cola was originally produced by the Fanta division of Coca-cola and was, at one
time, available in a variety of non-cola flavors as well. Later in 2005, Fanta branched
out into new Fanta Zero (diet versions) varieties in Great Britain. In Great Britain, the
new Fanta logo is introduced.
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Maaza
Type Fruit juice
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1976
Variants Maaza Orange, Maaza Pineapple
Related products Slice, Frooti
Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh, the
most popular drink being the mango variety so much that over the years, the Maaza
brand has become synonymous with Mango. Initially Coca-Cola had also launched
Maaza in orange and pineapple variants, but these variants were subsequently
dropped. Coca-Cola has recently re-launched these variants again in the Indian
market.
Mango drinks currently account for 90% of the fruit juice market in India.
Maaza currently dominates the fruit drink category and competes with Pepsi's Slice
brand of mango drink and Frooti, manufactured by Parle Agro.
While Frooti was sold in small cartons, Maaza and Slice were initially sold in
returnable bottles. However, all brands are also now available in small cartons and
large PET bottles. Of late, the Indian market is witnessing the entry of a large
number of small manufacturers producing only mango fruit drink.
Maaza has a distinct pulpy taste as compared to Frooti and tastes slightly
sweeter than Slice. Maaza claims to contain mango pulp of the Alphorns variety,
which is known as the "King of Mangoes" in India.
History
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Maaza was launched in 1976 in India. The Union Beverages Factory, based in the
United Arab Emirates, began selling Maaza as a franchisee in the Middle East and
Africa in 1976. By 1995, it had acquired rights to the Maaza brand in these countries
through Maaza International Co LLC Dubai. In India, Maaza was acquired by Coca-
Cola India in 1993 from Parle-Bisleri along with other brands such as Limca, Citra,
Thums Up and Gold Spot. As for North America, Maaza was acquired by House of
Spices in 2005.
KINLEY
Water, a thirst quencher that refreshes, a life giving force that washes all the toxins
away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need
of life, the very sustenance of life, a celebration of life itself.
The importance of water can never be understood. Particularly in a nation such as
India where water governs the lives of the millions, be it as part of everyday ritual or
as the monsoon which gives life to the sub-continent.
Kinly 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 they introduced Kinley with reverse-osmosis along with latest technology
to ensure the purity of their product. That’s why they go through rigorous testing
procedures at each and every location where Kinley is produced. Because they
believe that right to pure, safe drinking water is fundamental. A universal need that
can not be left to chance.
Channels
Grocery – Outlet primarily engaged in retailing of food & various household items. It
includes Grocers (Outlets dealing mainly in grains, provisions, spices, edible oil,
vanaspati etc.) and General Stores (Outlet selling items of day to day requirements &
stocking a variety of branded products)
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E&D types 1 – Outlet selling items of eat which are being consumed primarily
standing in the outlet or being taken away for Future Consumption. Does Not Have
Place To Sit. It includes bakery / sweet shops/ QSR / juice centers / soft drink
shops/ Tea shops etc.
E & D type 2 – Outlet selling items of eats which are being cooked/made within
outlet possibility of consuming those products within the outlet. The Outlet Should
have A Place To Sit. It includes Sit down restaurants / Bars / Dhabas / Cafes etc.
Convenience- includes outlets which are small stores, generally accessible locally.
These are often located alongside busy roads. It includes Chemists / STD Booths /
Pan – Beedi shops, etc.
Class
Bronze- Those outlets, which sells <= 200 carets per year.
Silver- Those outlets, which sells 201 - 499 carets per year.
Gold- Those outlets, which sells 500-799 carets per year.
Diamond- Those outlets, which sells more than 800 carets per year.
Story
Salesperson – hello sir, I am from Coke and I have a proposal that will surely
increase your income. May I present you?
Shopkeeper – yes please present it
Salesperson - Sir if you will start to sell coke then your overall sale will be increased
and it is not tough to sell coke because Coke is the leader in beverage industry and
a very well known brand.
Shopkeeper- yes, but how it can increase my overall sale?
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Salesperson - Sir, you are selling Chips, Pastry and snacks. And these products
have a very good combination with cold drink. If a person wants to purchase any of
these products then it is quite possible that he will purchase Coke and vice versa.
Shopkeeper – But how Coke can increase my profit?
Salesperson – Sir if you are really interested to explore through Coke, you may be
able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 6oo ml and 1 case of 2.25
liter. And for start selling Coke you need to invest only Rs. 2000. We will provide you
3 empty carets
We
igh
t
of
Pr
od
uc
t
(M
L)
Ra
te
of
ca
se(
Rs
.)
QT
Y.
M.
R.
P.
(R
s.)
Re
ve
nu
e(
Rs
.)
Pr
ofi
t(R
s.)
20
0
16
8
24 8 19
2
24
300 240 24 12 288 48
600 492 24 22 528 36
2250 500 9 60 540 40
Sir your daily profit from coke (in Peak season) = Rs. 148
Profit per month (in Peak season) = Rs. 4440
Profit of whole season = Rs. 26640
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(Because the peak season for Coke is only of 6 months)
Profit of rest of the 6 months = Rs. 13320
(Because as per the Coke assumption income in the off season is decreased
by half in comparison to the Peak season)
Profit of whole year = Rs.39960
Your investment = Rs. 2000
Your ROI = 39960 * 100/2000*360
= 66.6%
Shopkeeper – But I do not think this much will work what about those stuffs that
needs to support trading of Coke and I have to provide them like electricity, ice etc.
Salesperson – Sir that’s a really nice question, we can understand your anxiety and
we have to offer much more for this. We have minimum Rs. 10 offer on 200 and 300
ml and Minimum Rs. 20 on Pet bottles. More over if you are keeping your refrigerator
for the storage purpose of Coke if will be all right as the refrigerator can work by
consuming power as low as 2 units per day which will cost you Rs. 8 per day.
So, what you have to say about our offer?
Shopkeeper – Yes, I think it will be a nice idea to accept your offer.
Salesperson – Thank you sir and Congratulation (Shaking Hands) I will be
dropping my products within 10 minutes as I have the carrying vehicle with me and
within next 15 minutes you are all set to go for selling Coke.
Benefits of horizontal expansion:
Provides Incremental Volume & Revenue for Business
By horizontal expansion there will be more outlets of our product In the market
which will sell our product in more quantity. This will generate incremental
revenue for the business.
Helps Improve Route Productivity
There are pre determined routes through which product is transported and
delivered at the coke outlets. If we open more outlets on the routes it will
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increase the productivity because more outlets will be covered and more
products will be delivered with a negligible increase in time and efforts. Hence
it will improve productivity of the route
Improves Profitability of Our Distributors Expenses on routes and delivery of
product are incurred by the distributors. Opening new outlets will give more
revenue to our distributors also. With the increase in route productivity will
improve profitability of the distributors.
Reduced Dependence on Large Customers, We know that coke products
have a very good demand. To comply with this we have to provide large
amount of supply. In case we have few outlets a large amount of stock is
gathered at few retailers. In this case they become monopolistic and demand
many things like coolers refrigerators discounts margins etc. from the
company. So it is very necessary to reduce dependence on large retailers by
opening new outlets.
Increase market visibility selling at more outlets give more market visibility of
the product which gives higher product recognition and brand value to the
products.
Economies of scale
Economies of scope
Increase in market power over supplier and downstream market channels
Advantage of horizontal expansion over vertical expansion:
Both expansion techniques are meant for increasing sales volumes. But in horizontal
expansion company can earn more profits by spending less. Let’s see the profit story
of horizontal expansion
Above tables clearly indicate the importance of opening new outlets. By doing
vertical expansion only growth in profit was not very effective but because of opening
just 200 new outlets sales increased to a large extent. Total profit margin and return
on investment also increased.
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OUTCOME OF THE PROJECT
Apart from the other benefits of horizontal expansion, its main benefit is to generate
incremental revenue for the company. During the project I studied strategies and
analyzed the market. My major job was to use different tools provided by the
company for horizontal expansion like refrigerator, ice box etc. and to open outlets
for coca cola products. With my other team mates I targeted the market of Jaipur
and our outcome is as follows:-
No. of New outlets in Mansarovar = 12
No. of New outlets in Vidhyadharnagar = 10
No. of New outlets in other areas = 15
TERMS AND TERMINOLOGY
1.) DOD- DESPATCH OUT DATE- The date at which the product must leave the
factory warehouse and reach retail outlet. If any product is going to attain its
DOD in a week’s time then it must be communicated to the manger of the
warehouse & the stock should be cleared as soon as possible.
2.) Focus Stock- The stock whose DOD is less than 15 days away.
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3.) BBD- Best Before Date- The date before which the product is fit for
consumption. BBD stock can’t be sold in market.
4.) Clearance Stock- The stock which is between the Focus & BBD stage.
5.) Quality Distributor Audit- Company’s quality auditor pays regular visits to
the warehouses of the distributor and the retailer to check whether all the
quality parameters are met or not.
6.) RGB- Refill Glass Bottle. These bottle are made up of glass.
7.) PET- These bottle are made of plastic.
TOTAL PRODUCT MANAGEMENT AT DIFFERENT LEVEL
Production:-
Management should be efficient enough in order to minimize the wastage and
to increase and optimize the productivity.
Proper training should be given to the worker.
Proper material holding from the raw material to the finished goods.
Production is done in such a way that the product is made should have
proper label, date of manufacturing and it should be hygiene and the
packaging should be proper.
Warehouse:-
In warehouse the goods are kept properly. It should be kept clean in shade
not in open and direct sunlight should not fall on stock specially on Limca and Fanta
because it change the colour and taste. Proper board should be made for every lot of
stock.
The board contain the following:-
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1) Lot number
2) Date of manufacturing
3) Date of Dispatch (DOD)
4) Best before date (BBD)
5) Quantity of goods
Distribution:-
Note arrival time of truck and departure time from plant
Check conformity of brand/pack against indent
Note date code & segregate date wise and tag
Select cool – ventilated area of low temperature
Move older lot for first out dispatch
Improve storage condition – godown/layout
Check stock against target& trend
Decide order – dispatch schedule by brand/pack
Ensure fifo practice by agent
Create awarness of TPM specifically PET- maaza- sprite
Rationalise route and brand time table (small vehicle)
Do not kill or over order stocks
Personality supervise date code – check – all products
BBD lapse is a direct revenue hit
Report high risk stock – take suitable action
Demonstrate – educate – enforce FIFO at pos along with the daily route
activity
Be polite but firm about agent’s and retailer’s negligence . Don’t let
replacement be taken for granted
ROLL OUT PLAN
Make deadlines
Dispatch schedule of distributors – firm numbers
Direct route sale plan
Calculate stock level against plan
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Work reorder plan for brand pack or action of cxcess stock well in advance
FIFO method should be follow while placing the stock so it is easy for shipping
department at the time of dispatch, so the old stock is not remain in warehouse and
become BBD stock. FIFO method is strictly followed in shipping department. The
stock is reach to the distributor point with in dispatch out date (DOD) is half of best
before date (BBD). DOD is very important. It is the maximum time allowed for
reaching the goods from production to distributor.
Proper receiving of goods from company and maintain the record of each stock.
The following step is maintained:-
1) Record for stock received.
2) Stock is placed in such a way that FIFO method is follow.
3) Ageing analysis board should be maintained regularly.
4) Proper ventilation and lighting should be there.
5) Should be free from insects and pests.
6) Place Dry and proper temperature should be maintained.
7) Proper management of product delivery to retailer.
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We do the retailer’s survey in which we see the manufacturing date of each brand
present at retailer’s shop. From this we conclude that this product is BBD or not,
if it is BBD then, it means that the sale of this flavor is not very good and this
flavor is not liked by the consumer. If the product is fresh not BBD then the sale
of product is good because in this business the flavor is most important element.
In this survey we inform the distributor to replace the BBD product. This process
helps management to decide which flavor is more popular & which is less
popular.
We also conclude that Thumsup and Limca (RGB) flavor are more wanted or sale
at juice center. 2L PET is more at provision store and department store. In rural
area RGB’s Selling is more because it cost Rs. 35 and give 2L in comparision to
300 ml and 500 ml and the quantity is also sufficient for family members. In this
summer sale of 2L PET of Thumsup and Limca is more because in comparison
of 300 ml and 500 ml, 2L cost less.
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CHAPTER 3
RESEARCH METHODOLOGY
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3. RESEARCH METHODOLOGY
The study is based on Primary data and Secondary data. Secondary Data was
collected from the Company’s website and MD’s Sales Presenter as well as Primary
Data was collected through structured questionnaire. The questionnaire was
designed by keeping all the objectives of the study in mind.
3.1. Title of the Study: - “HORIZONTAL EXPANSION OF COCA COLA”.
3.2. Duration of the Project: - I have been assigned this project as 15 days
training.
3.3 .Objective of Research
Primary Objective:
1. To understand & explain the Horizontal Expansion Concept with respect to
HCCB operations at retail end.
2. To enlist the benefits of Horizontal Expansion for the company at retail end.
3. To enlist the roles and responsibilities for Horizontal Expansion at retail end.
Secondary Objectives:
1. To identify if there exists any training requirement for the improvement of
sales to its sales team?
2. To understand how to make The Horizontal Expansion Process more effective
3. To study the distribution system of the company.
4. To study the behavior of sales man and distributor towards shopkeeper.
To develop the business, expand the market coverage, acquisition of retailers,
retention strategies and maintaining customer relations
3.4.Types of Research
The type of research which is used to conduct survey was.
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Primary research, in contrast, is research that you design and conduct
yourself. For example, you may need to find out whether consumers
would prefer that your soft drinks be sweater or tarter.
Secondary research involves using information that others have already
put together. For example, if you are thinking about starting a business
making drinks for people, you don’t need to question people about what
type of drink they prefer for major and minor likes.—that information has
already been published by the Indian Government.
Research will often help us reduce risks associated with a new product,
but it cannot take the risk away entirely. It is also important to ascertain
whether the research has been complete. For example, Coca Cola did a
great deal of research prior to releasing the New Coke, and consumers
seemed to prefer the taste. However, consumers were not prepared to
have this drink replace traditional Coke.
3.5. Sample size and Data collection Method
Sampling units are outlets owners/ shopkeepers selling soft drinks.
Method of data collection:
The study is based on Primary data and Secondary data. Secondary Data was
collected from the Company’s website and MD’s Sales Presenter as well as Primary
Data was collected through structured questionnaire. The questionnaire was
designed by keeping all the objectives of the study in mind.
Universe:
Jaipur
Thus questionnaires and discussions were the two main tools/instruments used.
Sample Size:
Sample Size of 50 outlets.
Sample Technique:
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Sample Technique is Simple Random Technique.
3.6. Scope of study
What is Horizontal Expansion?
Expansion of business capacity through the absorption of facilities or buildings as
well as through the acquisition of new equipment to handle an increased volume in
sales in which the business is already engaged. In microeconomics and strategic
management, the term Horizontal Expansion describes a type of ownership and
control. It is a strategy used by a business or corporation that seeks to sell a type of
product in numerous markets. Horizontal Expansion in marketing is much more
common than Vertical Expansion is in production. Horizontal Expansion occurs when
a firm is being taken over by, or merged with, another firm which is in the same
industry and in the same stage of production as the merged firm, e.g. Pepsi has
adopted strategy of Vertical Expansion by which Pepsi wants to improve it’s sale
from Coke monopoly outlets, means Coke’s monopoly outlets are being taken over
by Pepsi now in this condition to improve it’s sale Coke need to open new outlets
which is called Horizontal Expansion Strategy. A monopoly created through
Horizontal Expansion is called a Horizontal Monopoly.
This is the expansion of a firm within an industry in which it is already active for the
purpose of increasing its share of the market for a particular product or service.
Reason Of Horizontal Expansion?
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The ultimate objective of coke is to acquire more customers and serve them
properly. While doing Horizontal Expansion take care to the competitor’s strategy.
The main competitor is PEPSI, who has opted Vertical Expansion to generate more
sell however Coke do not believe on Vertical Expansion because Vertical Expansion
has limited preview so COKE is great believer in Horizontal Expansion and this
strategy helped to the company to maintain its leadership in the soft drink industry.
India is a big country having diversified taste and appearance and same
character is reflected in their demography. Horizontal Expansion helps the company
to serve the more people and more customers touch point because in the waste
country many customers commute
How to Do Horizontal Expansion
To do Horizontal Expansion more efficiently we made a profit story and talk to the
shopkeepers according to that story.
From April to October 2009 we shared early drafts of this report with over 50 senior
representatives from NGOs, academia, government, professional bodies and retail
customers at four stakeholder workshops, facilitated by the Oxford Health Alliance.
These stakeholders provided a series of recommendations both for our reporting in
this, our first report, and for our future reporting and strategy. We responded to many
of their recommendations for this report, including:
Greater focus on short-term action as well as medium - long-term
transformation
Clear future vision - what kind of company we want to be, what kind of
products we want to sell
Greater specificity and clarity on pledges - clearer timelines, scope and
nutritional definitions - so we can be held to account
Pledges covering what we can influence, as well as what we can control - for
example widening the retail availability of our healthier product.
3.7.Limitations of study
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1. The training was for shorter period of time that is why it was not possible to
carry out a detail study.
2. The sample size was limited.
3. The strategies of the company changes very frequently it is difficult to make
exact recommendation.
4. Behavior of many retailers was not co-operative.
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CHAPTER 4
FACTS AND FINDINGS
4. FACTS AND FINDINGS
90
1. It is felt that outlet owner are more concern about schemes like offers on
cases, under crown schemes etc and Pepsi is providing them better schemes
then Coke.
2. It is felt that distributor is not doing his work honestly, he is not sending route
in the market properly. When the salespersons generate orders with retailer,
due to problem like salesman is on leave, vehicle is not available etc they
delay the order and retailer cancel the order with the distributors that affects
the sales volume.
3. Distributors are more concern about Wholesaler rather than Retailer.
4. As per policy, both companies are not entitled to collect competitor empty
bottles from the shops but Pepsi is not adhering to it. Therefore this
hampering the business of coca-cola in the market as Pepsi is more
preferable to carry on the business in a suave manner.
5. The distributor in its area is facilitating sales by establishing monopoly of
offers and schemes that do not reach to the outlet.
6. Due to infiltration from Moon Beverages (FOBO) in Jaipur from Delhi,
difference in the rates for the shopkeepers has been perceived as a major
problem in the market. The disparity is being created due to COBO and
FOBO.
7. Distributor rarely keeps any interest to work and communicate with the
customer who results in of the company’s sales as well as image are getting
adversely affected.
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CHAPTER 5
ANALYSIS AND INTREPRETATION
92
5. ANALYSIS AND INTREPRETATION
(1) What Type of Channel do you hold?
a) E & D
b) Grocery
c) Convenience
d) Other
E & D 20
Groc
ery
1
0
Convenience 20
Other, Please specify 0
(2) What Type of outlet are you in?
a) Pepsi Exclusive
b) Coke Exclusive
c) Never sell cold drinks
d) Both a & b
Pepsi Exclusive 10
Coke
Exclusi
ve
1
0
93
Never sell cold drinks 10
Both a & b 20
(3) What is the chilling equipment you are using?
a) Coca cola Fridge
b) Pepsi Fridge
c) Own your Assert Fridge
d) Ice Box
e) Both (A & B).
Coca cola Fridge 10
Pep
si
Frid
ge
1
0
Own your Assert Fridge 5
Ice Box 7
Both (A & B). 18
(4) Kindly rate the level of satisfaction on Communication from the company
94
a) Highly satisfied
b) Quite satisfied
c) Neither satisfied nor dissatisfied
d) Quite dissatisfied
Highly satisfied 6
Quite
satisfi
ed
1
9
Neither satisfied nor dissatisfied 8
Quite dissatisfied 13
Highly dissatisfied 4
(5) If a brand which you prefer is not delivered to you properly, then what do
you do?
a) Go for other brand
b) Call to distributor
c) Call to company’s sales person
d) Stop selling that brand
e) Other actions
Go
for
oth
er
bra
nd
32
Call to distributor 0
Call to company’s sales person 13
95
Stop selling that brand 5
Othe
r
actio
ns
0
96
(6) Which of the following promotions affect the sale mostly?
a) Scheme
b) Case refund
c) Price pack
d) Under Crown Scheme
e) Any Other
Sc
he
me
21
Case refund 7
Price pack 4
Under Crown Scheme 18
An
y
Ot
her
0
97
(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any
affect of it on sales?
a) No
b) Yes
c) Can’t Say
No 12
Yes 28
Ca
n’t
Sa
y
1
0
(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak
season, like Summer)?
a) Increase
b) Decrease
c) No effect
d) Can’t say
Increase 7
Decrease 6
98
No effect 22
Ca
n’t
sa
y
1
5
CHAPTER 6
99
SWOT ANALYSIS
6. SWOT ANALYSIS
Strength
Stronger brands in Cold drinks
Defining taste
Dominant market shares
First mover advantage
Established distribution network.
Aggressive market development
Weaknesses
Bakeries and hotels do not appreciate the policy of price difference
between wholesalers and distributors.
It doesn’t have tie ups with big hotel chains { like Oberoi and Taj }
The company does not distribute samples to potential users.
Service provided by the distributor is not up to the mark.
100
Visi coolers provided by the company are not adequate in number.
Opportunities
Impulse snacking is an Indian habit.
Attitude and disposable income changes are favourable to impulse drink.
Large youth population, 47% of urban India is growing dominant cold drink
consuming segment.
Child and gifting segments expected to grow at faster rate.
Great opportunity lies in the untapped new channels (school, colleges ,
clubs, hotels etc.
Threats
Aggressive marketing by competitors in hotels.
Foreign drinks have entered the market, and are eating up the market
share of coca cola.
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CHAPTER 7
CONCLUSION
CONCLUSION
Coca - Cola beverage pvt. ltd. is world’s largest beverage company and as we know
that the coca-cola company is on that stage because of its large number of products
and by giving the customer complete satisfaction regarding taste and quality.
Now a day it’s necessary to show customer and to make believe them that our
product is better than others in the aspects which can be done in a better way
through merchandising the products.
As far as journey with the company, I grasped lots of knowledge within two months.
Because many of the company officials has assisted and given me the valuable
notes and experience of their life.
The primary objective of the my research is to analyze the horizontal expansion
strategy of Coke and at the end of the research I found that there is requirement of
changing the strategy for acquiring new customer for Coke but company should take
care of its existing customer because they are the main instrument of promotion for
any company so old customer should be fully satisfied with the company.
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CHAPTER 8
SUGGESTION AND RECOMMENDATION
8. SUGGESTION AND RECOMMENDATION
1. It is suggested that the company should embark upon improved marketing
strategies with special importance to the following
a. Sales person should be provided with all the facilities that will help them in
reaching shops that are generally inaccessible due to factors like distance,
time etc. For this purpose, the company should enable its marketing wings
in such a way that they can facilitate communication and accessibility to
penetrate into markets devoid of sales person services. A suggestion can
be forwarded to the company if they can afford to supply carrying vehicles
(delivery vans) to the sales persons in order to extend markets.
2. Another problem that must be taken care of is rival’s competitive edge over
company’s performance. Pepsi is going brilliantly with its strategy of bottle
103
collection in an unbiased way. This is actually getting detrimental to the
company’s hold of overall market share of the area. So Coke is also
suggested to stop Pepsi for collecting Coke’s bottles.
3. A major problem has been detected in the area surveyed. This problem can
be ranked in the first order as it is related to the distribution channel itself the
problem lies with the distributor who, in executing a strange dictate, has
established a monopoly in its business and not letting several critical factors
to be considered. These include pricing policy as a primary factor where the
distributor is setting the price on its own will and taking care of its own
business profitability. If Coke does not pay attention towards the matter, not
only it will affect its market populism in an ill way, also will it pave the way for
Pepsi to capture its lost market.
4. It is necessary for the company to resist FOBO of its vandalism of market
infiltration to save the image of the company in Jaipur and to maintain
controlled rates as well. For this purpose, two things need to be considered;
awareness in the market about distinction between COBO and FOBO and to
set an easily understandable demarcation to recognize the distinction. It is
suggested to the company to introduce code system which can exclusively
identify both COBO and FOBO. With it, shopkeepers should get the
acknowledgement from the company’s side about checking the products
before keeping them to their stores.
5. A strange feedback from the market has, however, paused comprehension
about Coke’s market. The survey has shown that the practice of delay for
supplying products in the market can create a compelling situation for the
shopkeepers to change or switch over from COKE. It is humbly recommended
that, in order to win over problems in the prospective market of Jaipur, Coke
should always step forward to verify and maintain its supply chain system in
striking a balance between ‘what is produce’ and ‘how much is sold’.
6. The final round of question, however, revealed that schemes and offers will
always trigger shopkeeper’s enthusiasm in selling the product. Coke should
find out a cost effective solution so that it could extend favor to the
shopkeepers in keeping beverages from the company along with competitor’s
products.
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CHAPTER 9
APPENDIX (1) What Type of Channel do you hold?
e) E & D
f) Grocery
g) Convenience
h) Other, Please specify
___________________________________________________
(2) What Type of outlet are you in?
e) Pepsi Exclusive
f) Coke Exclusive
g) Never sell cold drinks
h) Both a & b
(3) What is the chilling equipment you are using?
f) Coca cola Fridge
105
g) Pepsi Fridge
h) Own your Assert Fridge
i) Ice Box
(4) Kindly rate the level of satisfaction on Communication from the company
f) Highly satisfied
g) Quite satisfied
h) Neither satisfied nor dissatisfied
i) Quite dissatisfied
(5) If a brand which you prefer is not delivered to you properly, then what do
you do?
f) Go for other brand
g) Call to distributor
h) Call to company’s sales person
i) Stop selling that brand
j) Other actions, please specify __________________________________________.
(6) Which of the following promotions affect the sale mostly?
f) Scheme
g) Case refund
h) Price pack
i) Any Other, Please Specify
________________________________________________.
106
(7) While COKE does not take empty bottles of PEPSI, latter does. Is there any
affect of it on sales?
d) No
e) Yes
f) Can’t Say
(8) Is there any effect of mega events (eg. IPL) on sale of COKE (In peak
season, like summer)?
e) Increase
f) Decrease
g) No effect
h) Can’t say
(9) I. Kindly rate the behavior of sales man (Overall year) towards:
A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied
D) Dissatisfied E) Highly dissatisfied
10) Delivery (timeliness)
_____________________________________________________
a) Once in a week
b) Twice in a week
c) more than twice in a week
d) Once in a Month
107
11). Kindly rate the behavior of sales man (Peak season) towards:
A) Highly satisfied B) Satisfied C) Neither satisfied nor dissatisfied
D) Dissatisfied E) Highly dissatisfied
(12) Kindly rate the behavior of distributer (Overall year) towards:
A) Satisfied C) Neither satisfied nor dissatisfied
B) Dissatisfied D) Don’t Know Distribute
BIBLIOGRAPHY
108
10. Bibliography
Reference:
www.coca-cola.com
www.coca-colaindia.com
Books:
Market Research (Naresh K. Malhotra)
109
110