A
Summer Training Research Report On“PROCESS OF PAYMENT TO FREIGHT AND
ANALYSIS WITH DIFFERENT COST” OF
HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITEDSUBMITTED TO:
Gautam Buddha Technical University, LucknowFor The Partial fulfillment of the requirement of
Masters of Business Administration(MBA-2011-2013)
UNDER THE SUPERVISION OF:Mr. Alok kumar
SUBMITTED BY:Deepak Kumar Singh
Roll No:1106170042
SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW25, SECTOR, INDIRA NAGER
LUCKNOW-226016
SHERWOOD COOLEGE OF MANAGEMENT
Approved by AICTE. Ministry of HRD, Govt. of India & Affiliated to G.B.
Technical
University, Lucknow (Under the Management of U.S. Srivastava Memorial
Education Society)
Sector-25, Indira Nagar, Lucknow – 226016. (U.P.) INDIA Ph.: (0522) 2716630
Fax: 0522-2716526, Phone: 0522-2716630,
Website: www.sherwoodindia.in, E-mail: [email protected]
Date: _________
CERTIFICATE
This is to certify that Mr. Deepak Kumar Singh of Master of Business
Administration session 2011-2013 has completed his Summer Training
on the Topic “PROCESS OF PAYMENT TO FREIGHT AND
ANALYSIS WITH DIFFERENT COST”
A partial fulfillment for award of Master of Business Administration.
The Summer Training Report submitted by him/her is a genuine work
done by him/her and the same is being submitted for evaluation.
Place: Lucknow (Name &Signature of the Internal Guide)
Date:
(Mr. Mayank Singh)
Prof Dr. Vivek Inder Kochher
Director
2
ACKNOWLEDGEMENT
Report with such topic demands for some experienced knowledge, professional help
and encouragement from many quarters. I have deep regard for and gratefully thank
Mr. ALOK KUMAR (AREA SALES MANAGER) of AMRIT BOTTLERS
PVT. LTD. FAIZABAD. who have devoted their precious time, friendly assistance,
support and guidance for encouraging me to develop this project report. I would feel
pleasure if I could contribute even to the smallest extent in this regard. .
I extend my heartfelt gratitude to Mr. VIVEK INDER KOCHHER, DIRECTOR,
SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW invaluable
guidance and advice.
I extend my heartfelt gratitude to Mr. MAYANK SINGH, Faculty, SHERWOOD
COLLEGE OF MANAGEMENT, LUCKNOW invaluable guidance and advice,
full support and attention.
Last but not the least I must thank Almighty God for his inspiration and guidance and
my family members for their unquestioning encouragement without which this work
would not be possible.
3
DECLARATION
“PROCESS OF PAYMENT TO FREIGHT AND ANALYSIS WITH
DIFFERENT COST” is an authenticated work carried out by me at AMRIT
BOTTLERS PVT. LTD. under the guidance of Mr Alok Kumar , I DEEPAK
KUMAR SINGH , hereby declare that the project work entitled under Mr. ALOK
KUMAR for the partial fulfillment of the award of the Degree of MBA and this
work has not been submitted for similar purpose anywhere else except to
SHERWOOD COLLEGE OF MANAGEMENT, LUCKNOW, approved by
Gautam Buddha Technical University(G.B.T U.)
Deepak kumar singh
Date:
Place:
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PREFACE
The MBA program is well structured and integrated course of business studies.
The main objective of practical training at MBA level is to develop skill in student by
supplement to the theoretical study of business management in general. Industrial
training helps to gain real life knowledge about the industrial environment and
business practices. The MBA program provides student with a fundamental
knowledge of business and organizational functions and activities, as well as an
exposure to strategic thinking of management.
In every professional course, training is an important factor. Professors give us
theoretical knowledge of various subjects in the college but we are practically
exposed of such subjects when we get the training in the organization. It is only the
training through which I come to know that what an industry is and how it works. I
can learn about various departmental operations being performed in the industry,
which would, in return, help me in the future when I will enter the practical
field.Training is an integral part of MBA and each and every student has to undergo
the training for eight weeks in a company and then prepare a project report on the
same after the completion of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge
and the practically in the real life.In today’s globalize world, where cutthroat
competition is prevailing in the market, theoretical knowledge is not sufficient. Beside
this one need to have practical knowledge would help an individual in his/her carrier
activities and it is true that “Experience is best teacher”
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TABLE OF CONTENTS
Sr.No . Title Page No.
(i) Institute’s Certificate (I)
(ii) Company’s certificate (II)
(iii) Acknowledgement (III)
(iv) Declaration (IV)
(v) Preface (V)
1. Introduction : 1-5
Objective of the study 5
2. Industry Profile 6-7
3. Company Profile 8-24
4. Trade Profile
25-74
5. Research Methodology 75-79
6. Findings 80-81
7. Limitations of the study 82- 88
8. Annexure 89-94
9. Suggestion 95
10. Conclusion 96
11. Bibliography 97
Questionnaires 88-90
Sample information 91-93
12. Bibliography 94-95
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EXECUTIVE SUMMARY
Doing this project was a great experience. The Coca-Cola in India has set up an
independent organizations which is H.C.C & B.C.C. with a capital of 350 U.S. $ each
by virtue of sellout decision of the passed managing director Mr. S.C.Agarwal.
Present soft drink boon in India was attributed to the legacy of Coca-Cola, which was
there in India till 1977. In today’s market the Coca-Cola hold a 62% market share that
appears to bear concentrated rush to beg a big share in the soft drink market.
Being a capital & biggest business center of India I choose the area of Delhi to
conduct my study and to get lot of exposure & various opportunities to meet different
kind of customers. This project has been under taken to study the availability of
complete range of Coca-Cola products to retail outlets.
To conduct the detail study of my project, I worked for a distributor in south Delhi.
During the training period I covered the whole market of center Delhi and gathered
the information from retail outlets regarding the availability of whole range of Coca-
Cola products. After getting the information, I list out those retail outlets and getting
the response regarding the various promotional schemes of coke and other.
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INTRODUCTION
In our present day economy, finance is defined as the provision of money at the time
when it is required. Every enterprise, whether big, medium or small, needs finance to
carry on its operations and to achieve its targets. In fact, finance is so indispensable
today what it is rightly said be the lifeblood of an enterprise. Without adequate
finance, no enterprise can possibly accomplish its objectives.
Finance is the lifeblood and nerve centre of a business, finance is very essential to
smooth running of the business. No business, whether big, medium or small can be
started without an adequate amount of finance. The most crucial decisions of firm are
those related to finance.
Financial management is concerned with procurement and use of funds. There are
various alternatives available for using business funds. The pros and cons of various
decisions have to look into before making a final selection There are many kinds of
financial management decisions that the firm makes in pursuit of maximizing
shareholder's wealth viz., kind of assets to be acquired, pattern of capitalization,
distribution of firm's income etc. We can classify these decisions into three majors
groups:
1. Investment decisions
2. Financing decisions
3. Dividend decisions
1. Investment decisions: it is related to the determination of the total amount of assets
to be held in the firm, the composition of these assets and the business risk
complexions of the firm as perceived by its investors. Since Funds are available in a
limited quantity, its proper utilization is to achieve the goal of wealth maximization.
The investment decision can be classified under two broad groups:-
Long term Investment
Short term Investment
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2. Financing decisions: once the firm has taken the investment decisions and
committed itself to new investments the needs for financial decisions are on going.
Hence a firm will be continuously planning for financial needs.
A finance manager has to select such sources of funds which will make optimum
capital structure. The important thing to be decided here is the preparation of various
sources in the overall capital mix of the firm. The debt-equity ratio should be fixed in
such a way that it helps in maximizing to profitability of the concern.
3. Dividend decision: the third major financial decision relates to the disbursement of
the profiles back to investors who supplied capitals to the firm the term dividend to
that past of profiles of a company which is distributed by it among it shareholder .it is
the reward of shareholder for investment made by them in the share capital of the
company.
In today’s complex economic environment, the measurement and presentation of
financial information is critical as far as allocation of economic resources is
concerned. The TRANSPORTATION COST is more important for the FMCG
Company. FMCG is basically for sales generating though manufacturing all Brands.
FMCG Company depends on Sales and the transportation cost is major part of its
expenses. All the expenses are fixed such as Administration cost, Advertisement cost,
Selling cost, Manufacturing cost etc.
Transportation costs are made on accrual basis.
Transportation costs are always change due to various reason such as increase in rate
of diesel & petrol(fuel), increase in rate of taxes, toll tax, change in contract with
Travel Agency, etc.
In this Project Report, an effort has been made to provide a COMPARATIVE
ANALYSIS OF BASIC CONCEPT OF TRANSPORTATION COST which directly
effect to the cost of company.
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The company has no its own carriers so the company heir the carrier agencies. The
company pays the freight to the carrier agencies. Some distributors have its own
vehicles. The carrier agencies are as follows:-
Ajay Roadways.
Mini Roadways
Murli Roadways
The distributors have its own vehicles are as follows:-
Maa Mansha cold Drinks
Vandana Agencies
Shiv Traders
Ashish Traders
Astha Enterprises
Baba Enterprises
ETC
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OBJECTIVE OF THE STUDY
1) To analyze the transportation cost of the company .
2) To analyses the satisfaction level of transporter towards company.
3) Determination of various strategies to reduce the freight charges.
4) Comparing the freight charges with other companies.
5) Comparing the freight charges with other cost of companies.
6) To adopt the suitable process of payment of freight of the company.
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INDUSTRIAL PROFILE
Present soft drink boon in India was attributed to the legacy of Coca Cola, which was
there in INDIA till 1977. In today’s market the Coca-Cola (Coke, Thumps Up, Fanta,
Limca, Sprite, Vanilla Coke, etc.) hold a 62% market share that appears to bear
concentrated rush to beg a big share in the soft drink market.
Various national & multinational firms are engaged in soft drink market due to
increase in its demand day by day. As far as INDIA soft drink market is concerned
there are major company’s engaged having a big completion to capture the soft drink
market are namely Coca-Cola & Pepsi. While Campa Cola & many local cola’s still
notice in the Indian Market.
Pepsi Cola attacked Coca-Cola before World War II. Coca Cola dominated the
American soft drink industry, Pepsi cola was a drink less to manufactures & with a
less satisfactory taste then Coke. Where as Coca-Cola major selling point was more
drink for the same price and Pepsi emphasized on advertising.
During World War II Pepsi & Coke both enjoyed increased sale. After the war Pepsi
sale was started to fall relatively to Coke, resulting the Coca-Cola had starting to click
the Market share. A number of factory contributed to Pepsi problem were poor image,
poor taskforce, poor quality control etc.
At that point Alfred.N. Steeler came to the presidency of Pepsi cola with a great
reputation for merchandising. He and his staff recognized that the main hope lay
transforming Pepsi from a cheap imitator of Coke into a class on soft drink
manufacturer.
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By 1955 all Pepsi’s major weakness had been overcome, resulting sales had climbed
substantially. These actions from 1955 to 1960 led to a considerable sales growth for
Pepsi.
In India another company engaged in soft drink market is Coca-Cola. It is one of the
most widely known, accepted and admired trademarks of the world. Coca-Cola was
there in India till 1977, when the Indian Government banned it due to strong
resentment against multinational company’s Coca-Cola was re-launched again in
India in September 1993 at “HATHRAS” near Agra. The India people welcomed the
come back of their most loved Cola in the country with great enthusiasm and vigor.
Coca-Cola marked its re-launching with acquiring five Parley drinks viz. Thumps
Up, Gold Spot, Limca, Citra, Maaza, Soda.
Soft drink industry is one of the fastest growing industries in India. The basic idea
behind the rapid growth of this industry is due to following reasons:
1. The great corporate war between Coke & Pepsi, who left no stone unturned,
for monopolizing the India Soft Drink market.
2. The basic ideology of these two giants is to promote soft drinks as a food
item in India hold.
3. The long hot summers in India have increased the consumption of soft
drinks.
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COMPANY PROFILE
Coca – Cola company is the global company and has completed 122 years of
consumer service with some of the world’s most widely recognized brands , the coca-
cola business in INDIA, as in each country where they operate, is a local business .
Their beverage is produced locally employing Indian citizen, their product range and
marketing reflects Indian taste and lifestyles.
After a 16 – year’s absence, Coca-Cola returned to India in 1993. The company
presence in India was cemented in November that year in a deal that gave Coca-Cola
ownership of the nation’s top soft drinks brands and bottling network .Coca-Cola
India has made significant investment to builds and continually improve its business
in India , including new production facilities , wastewater treatment plants , and
distribution system and marketing equipment .
Coca- cola business system directly employs approximately 6000 local people in
India. In fact, they indirectly create employment for more than 1, 25,000 people in
related industries through their vast procurement, supply and distribution systems.
Virtually all the goods and services required to be produced and marketed by coca-
cola locally are made in India.
The coca-cola system in India comprises 27 wholly owned companies -owned
bottling operations and another 17 franchise –owned bottling operations. A network
of 29 contracts –packers also manufactures a range of products for the company. The
complexity of the Indian market is reflected in the distribution fleet, which include 10
tones trucks, open bay three wheelers that can navigate the narrow alleyways of
Indian cities, and trademark tricycles and pushcarts.
One wrong move can lead to dramatic changes in market share. The pricing is quite
essential in the business and any minor change can lead to huge changes in fortunes.
Advertising here is conventional, not in content but in terms of time frames.
Everything boils down to advertising and distribution strategies , its plan or lack of
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them for the non-cola segment , plan of attack in rural markets , and its profitability
and growth rates.
Soft drinks have fairly high elasticity of demand, which ensures that producers must
strike a fine balance between prices and sales volumes. Coke has decided to peg
prices similar to other products and tries to gain market share through vigorous
promotional activities.
The infrastructural cost are high but you have to rework your other costs like credits
and discounts and bring them down , which is exactly what it is doing at the moments.
Coke sells mostly through fat dealers who sell the products of both companies and
they undercut all the time. There are plenty of innovations possible in distribution that
can cut costs. For the same no of accounts in the north you require more people,
vehicles, and basically more expenditure. Therefore it makes sense to pre-sell or in
other words, book orders and then sell this reduces recurring costs and revenue
expenditure comes down.
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Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola
on May 8, 1886. Coca-Cola originated as a soda fountain beverage in 1886 selling 5
cents for 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.
The Coca-Cola offers more than 400 brands in over 200 countries. From Inca
Kola, a soft drink found in north & south America and Samurai, an energy drink
available in Asia, to Vita, an African juice drink and Bon Aqua, a water found in 4
continents. The Coca-Cola Company is dedicated to not only producing quality
products, but satisfying the thirst for opportunity, education and economic
development across the Globe. Our product variety spans the Globe.
BRIEF HISTORY OF
COCA-COLA
is the biggest and the most popular selling drink in history, as well as
the best known brand in the world. The company was created on May 8th, 1886 by Dr.
John Styth Pemberton in Atlanta .He made world’s favorite soft drink by mixing
carbonated water with caramel coloured syrup. The name & trademark
was carried by Pemberton’s partner Frank M. Robinson.
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As a G. Candler acquired in 1891 by an investment of $ 2300. He was
druggist & businessman in Atlanta.
Candler sold out the company in1919 to Atlanta banker Ernest Woodruff. His son
Robert Woodruff was elected as president in 1923.
In 1967, a Minute Maid Company was formed which added fruit juice concentrates to
portfolio. The Coca-Cola was acquired by Columbia Pictures & Belmont Spring
Water Company in 1982.
In 1989, Belmont Spring Water was sold and its stake in Columbia Pictures
Entertainment Inc.
A joint venture Company was formed in 1991 with the name of Nestle SA to
manufacture market & distribute Nestea & Nescafe.
After sometime, moved from being a carbonated soft drink to a total
beverage company by showing its presence in Fruit Juice, Coffee, and Health Drink &
Water.
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HISTORY OF BOTTLING
Coca –Cola originated as a soda fountain beverage in 1886 selling for 5 cents a
glass. Early growth was impressive, but it was only when a strong bottling system
develop that Coca-Cola became the world famous brand.
1894 … A modest start for a bold idea
In a candy store 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 of Asa Griggs Candler, who owned the company. Candler
thanked him but took no action. One of his nephews already had urged that Coca-Cola
be bottled, but Candler focused on fountain sale.
1899…The first bottling agreement
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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 ventures.
1900-1909…Rapid growth
The three pioneered bottles divided the countries into territories and 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 business. Some
were open only during hot-weather months when demand was high.
1916…Birth of the Contour Bottle
Bottles worried that Coca-Cola’s straight sided bottle was easily confused with
imitators. A group representing the company and bottlers asked glass manufacturers
to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few
packages ever granted trademark status by the U.S. Patent Office. Today, it’s one of
the most recognized icons in the world even in the dark!
1920s…Bottling overtakes fountain sales
As the 1920s dawned, more than 1000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six bottle cartons were huge hit starting in
1923. A few years later, open-top metal cooler became the fore runners of automated
vending machines. By the end of the 1920s, bottle sales of the 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 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 IInd began, Coca-Cola was being bottled in 44
countries.
1940s…Post-war growth
During 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 world wide 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 in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by Fruitopia in 1990s. Today scores of the other brands are offered to meet
consumer preferences in the local markets around the world.
1970s and ‘80s…consolidation to serve customers
As technology led to global economy, retail customers of the Coca-Cola Company
merged and evolved into bottlers consolidated to better serve giant international
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customers. The company encouraged and invested in a no of bottler consolidation to
assure that its largest bottling partners would have capacity to lead the system in
working with global retailers.
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 honors local identity and distinctiveness of the local markets. As was true a
century ago, strong locally based relationship between Coca-Cola bottlers, customers
and communities are the foundation on which the entire business grows.
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BUSINESS OVERVIEW:
Introduction:
Coca-Cola, the world’s most famous brand completing 118th year of its existence on
8th May this year. Today the Company is an unquestionable leader in the world
business of non-alcoholic beverages. Coca-Cola is the world largest soft-drink and
arguably the most successful product ever launched in the history of the commerce.
More than one billion servings of the Coca-Cola products are consumed everyday
around the world in more than 200 countries.
In India, Coca-Cola operates through the Coca-Cola India Division Office situated at
Gurgaon near New Delhi. Hindustan Coca-Cola Beverages Private Ltd is fully owned
subsidiary of the Coca-Cola India which runs a number of bottling plants all over
India.
Hindustan Coca-Cola Beverage Private Ltd, Varanasi is one of the key units in East
U.P. This unit is situated at approximately 18-km from the city and 40-km from the
nearest airport of Varanasi The unit has single bottling lines of 600 bottles per minute
capacity. Almost all brands of Coca-Cola Company, prominent amongst them, Coca-
Cola, Thumps up, Limca, Fanta, Sprite, Kinley Soda etc., are manufactured here. The
sizes of the packaging vary from 200ml, 300ml to 1-litre capacity. Returnable glass
23
bottle (RGB) is the only package used. Glass bottles are handled in plastic reusable
crates. Thus there is no any significant environmental impact because of packaging.
The raw materials used are Water, Sugar, Concentrate and Carbon Di-Oxide.
Concentrate plant near Pune supplies concentrate to this bottling unit.
The wastes generated during the manufacturing process are mainly waste water and
non-hazardous solid waste in saleable and non-saleable category. Saleable waste
includes broken glass, plastics, papers, gunny bags, metal scrap and other
miscellaneous waste.
Obviously the saleable waste is recycled or reused as raw material to businesses and
industrial activities and has no adverse environmental impact. Non-saleable waste
consists of biological ETP Sludge, used carbon, garbage and canteen waste etc. The
quality of this non-saleable solid waste is very little as compared to the total waste
and the waste is non-hazardous in character. No on-site burial or burning of waste is
carried out.
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Manufacturing process:
We at Coca-Cola are committed to manufacture our products with utmost care and
with quality at top priority which makes it the world leader in the soft drink industry.
Following is the overview of the stringent
Processes adopted in manufacturing before our quality product reaches finally to our
proud consumers.
WATER TREATMENT:
We at HCCBPL Varanasi follow a batch treatment which includes coagulation &
flocculation. The method ensures disinfection and settling of all macro impurities and
thereafter it pass to sand, carbon filters to remove off odour ,off colour, off taste, and
thus it is strictly bought in line with the WHO requirements. We are also using state
of art –micron filtration process where the water is filtered up to the extent of 1
micron before it is fed to the process.
25
This extensive treatment of water under strict monitoring and sampling for quality
leads to pure hygienic water with the highest quality meeting the Coca-Cola
standards.
SYRUP PREPARATION:
Coca-Cola uses highest quality of sugar which is controlled and ensured by its
stringent pre-laid standards, which serves as the strict criteria before acceptance of a
lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is given
a contact time with hyflo and carbon at elevated temperature. It is then passed through
a filter press which removes the carbon particles and other impurities before it
declared fit for concentrate mixing. All this process takes place under the strict vigil
by the quality department which maintains the appropriate records of
26
the numerous tests carried out in the entire process which makes it a foolproof
process.
In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple
syrup in very strict hygienic condition to yield final syrup. The entire syrup
manufacturing area is maintained under a constant positive pressure which rules out
the possibility of any external particles entering into the process room.
CONTAINER WASHING:
Container has been identified as one of the major critical control point in the entire
manufacturing process & that’s the reason that company has laid some of the very
stringent and foolproof systems which ensures Coca-Cola product to be of the highest
quality and reflects our commitment towards delivering the best in class product to
the consumers.
The bottles received from the market are loaded on the conveyor by the uncasing
machine and the arrays of the unwashed bottles passes through the four pre-wash
inspections stations which ensures removal of rusty neck bottles, excessively dirty
bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles pass
into the bottle washing machine which uses intensive mechanical and chemical
processes to clean and disinfect the bottles thoroughly and ensures the bottles to be
ready for filling. However as an additional safety, there is again a post wash
inspection station comprising of 4 sub-stations, which ensures removal of the chip
necked bottles and suspected bottles from the lot. Thus the bottles are subjected to
series of stringent inspections before it is fed to the filler for filling.
MIXING, PROPORTIONING:
Proportioning is basically a process where ready syrup is diluted in a predetermined
fixed proportion with water and carbonated concentrate in to beverage conforming
strictly to company’s norms and specifications. It is carried out by an Italian Machine-
MOJONNIER.
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FILLING & CROWNING:
The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles
through a rotator machine named FILLER. The bottles are immediately crowned by
crowner (adjacent to the filler) and thereafter bottles passes through the date coding
machine which enable the consumer to be 100 percent sure of consuming a perfectly
safe and fresh product.
FINAL INSPECTION:
After date coding, there is once again a final inspection station where light inspectors
all low or high filled bottles and permit only the saleable product to pass through for
casing to the caser machine.
MANAGING THE WASTE WATER:
Production lines maintain the waste water from the bottle washers, Syrup and Filler
rooms. Entire waste water generated is treated at Waste Water Treatment Plant and
discharged through a 800 meters long pipeline specially laid to discharge the treated
waste water away from inhabited areas. Part of this water is being used for gardening
purpose within the plant premises.
MARKET and CUSTOMERS:
Once the finished product is ready, it is transported to the distribution centers and then
to retail outlets by way of route trucks. The consumer buys the soft drink from the
retailer outlets. The empty bottles are simultaneously collected by the distribution
channels at the time of dispensing the finished products.
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SUPPLIERS AND OTHER BUSINESS PARTNER:
Other than water and concentrate, bottling operation require sugar, CO2, bottles,
crates and other miscellaneous materials. The Coca-Cola India division has a Supplier
authorization program where suppliers are authorized based on a defined criterion.
Environmental considerations are amongst the critical of these criterions.
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EMPLOYEES, PLANTS & MACHINERY:
The no of total East UP unit employees is approximately 98 & in summer season,
which is a peak season for sale of soft drinks, the plant works for three shift operation
round the clock.
The overall education level of the employees is good and they obviously have a good
expertise in water treatment and purification processes. Extensive in-house training
programs are conducted to maintain the competency of the manpower in respective
areas. The plant and machinery consists of state of art bottling machinery and test
equipment to get consistent quality product at the optimum usage of raw materials.
The plant also has an extensive quality test laboratory with equipment like
spectrophotometer, density meter, micro lab etc. to conduct on the spot tests at various
stages of production.
A typical bottling line will consist of uncaser- pre wash inspection station –conveyers-
bottle washer-post wash bottle inspection station—filler-final light inspection station-
conveyor-and caser.
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COKE PENETRATION IN RURAL MARKET
In urban areas, the 8 to 10 percent of total sales of coke is through Area Market
Contractors (AMC) who is equivalent to big retailers and other outlets. In the village
areas .coke uses so called distributors for the sales. A striking feature in the logistics
of Coke is that the AMC’s supply material directly using trucks but in case of
inaccessibility to retail outlets due to location-constraints, supply is made through
auto rickshaws also.
The truck also gives the company permanent hoarding space on their sides and backs.
Also, as the industry competition is strong dealer push at the point of purchase is an
important factor for sales. The retailer often can play manufactures against each other
to obtain favorable deals. To avoid this situation coke incorporates a high degree of
standardization with respect to the price waterfall elements (the various types of
discount offered), through there are differences in the timing. Innovation in
availability is something that coke can lay claim to. Coke introduced the pushcart.
Cok3e is busy putting in place infrastructure to hit villages with its small 200 ml
bottle, priced aggressively at Rs. 5. With 200 ml it has larger market. It is exploding
this market with low unit price packs and pushing growth in home consumption
through the PET bottles. Coke’s game plan is to have high volume, low margin
business. The infrastructure costs will be high but they have to rework their other
costs coke credits and discounts and bring them down.
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PRODUCTS:
Leading Indian brands Thumps Up, Limca and Maaza joins the company’s
international family of brands including Coca – cola, diet coke, sprite and
Fanta, plus the Schweppes product range.
A Kinley water brand was launched in 2000.
In 2001, Coke’s energy drinks shock and first powdered concentrate, Sun Fill,
and hit the market.
In 2004, company launched its ice creamy thanda products, vanilla Coke.
QUALITY:
In everything Coke do from the selection of ingredients to the production of
beverages and their delivery to the marketplace, they use their specialized quality
management system. The coca-cola quality system ensures that they are offering
consumers only the highest quality products. They monitor their customers and
consumer feedback and they are in trade monitoring programs, and this information
enables them to continuously improve their already demanding systems.
ADVERTISING:
Advertising has played an important role in the success of products since first
newspaper ad in 1886, which read “Coca-Cola Delicious! Refreshing! Exhilarating!
Invigorating!” The company uses adver4tising to trigger desire as often and in as
many ways as possible. Through out the years, slogans or coca-cola have been
memorable .Here are some highlights:
2000-Coca-Cola Enjoy
1993-Always Coca-Cola
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1990- Can’t Beat the Real Thing
1989-Can’t Beat the Feeling
1986-Red,White and You
1982-Coke Is It
1976-Coke Adds Life
1971-I’d Like to Buy the World a Coke
1969-It’s the Real Thing
1963-Things Go Better With Coke
1959-Be really Refreshed
1944-Global High Sign
1942-It’s the Real Thing
1936-It’s the Refreshing thing to do
1929-The Pause That Refreshes.
34
BRAND INFORMATION:
COCA-COLA:-
It is the world’s favorite drink and most valuable brand. The most
recognizable word across the world after OK. Coca-Cola has truly remarkable
heritage. From the humble beginning in 1886, it is now the flagship brand of the
largest manufacturer, marketer and distributor of non-alcoholic beverages in the world
in India; Coca-Cola was the leading soft drink till 1977 when govt. policies
necessitated its departure. Coca-Cola made its return to the country in 1993 and made
significant investments to ensure that the beverage is available to more and more
people even in remote and inaccessible parts of the nation.
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THUMPS UP:-
Strong cola taste for exciting personality. Thumps Up is a leading carbonated
soft drink and most trusted soft-drink brand in India .Originally introduced in 1977 by
Parle and later on was acquired by the Coca-Cola Company in 1993.
Thumps Up is known for its strong fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys.
LIMCA:-
Limca is the drinks that can cast a tangy refreshing spell on anyone, anywhere. Born
in 1971, Limca has been the original thirst choice, of millions of consumers for over
three decades.
The brand has been displaying healthy volume growth year on year and Limca
continues to be the leading flavors soft drink in the country with a market share of
12%. The success formula of Limca lies in its sharp fizz and lemony bite combined
with the single minded positioning of the brand as the ultimate refresher has
continuously strengthened the brand franchise. Limca energizes refreshes and
transforms. Dive into the zingy refreshment of Limca and walk away a new person.
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FANTA:-
Internationally, Fanta- the orange drink of coca-cola company is seen as one
of the favorite drinks since 1940’s. Fanta entered the Indian market in the year 1993.
Over the years Fanta has occupied a strong market place and is identified as “The Fun
Catalyst” Perceived as a fun youth brand, Fanta stands for its vibrant colour , tempting
taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus
encouraging one to indulge in the moment. This positive imagery is associated with
happy, cheerful and special times with friends. Fanta advertising over the time has the
highest association with fun and friends that has reflected through past TV
commercials like Misty Ka Apna Taste, Bajao Masti Ki Ghanti , Dil Khol Ke, to the
recent commercial “ Kya Dhakkan Hain”. Rani Mukerjee, as the brand ambassador
for Fanta is the perfect embodiment of brand character vies fun, vivacious and
energetic. Fanta is available around the country in 200 ml, 300 ml, 600 ml, 1.5 liters
and 330 ml cans.
SPRITE:-
World wide sprite is ranked as the No. 4 soft drink and is sold in more than
190 countries. In India, Sprite was launched in year 1999 and today it has grown to be
the one of the fastest growing soft drinks, leading the clear lime category.
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Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,
Sprite has stood for straightforward and honest attitude. Its clear crisp refreshing taste
encourages the today’s youth to trust their instincts, influence them to be true to who
they are and to obey their thirst.
Sprite advertising has always been memorable with very high recall value, especially
amongst the youth. With popular TV commercial like Lisa Ray, Aish, Market
research and its latest take on its competitor- ‘ I don’t want to Do’ Sprite has stood in
the minds of youth as “Sprite Bujhaye Only Pyaas , Baki All Bakwaas” , which has
become recognizable around the country. Sprite is available around the country in
200ml, 300 ml, 500 ml + 100 ml free, 1.5 ltr, 2 ltr, 2.25 ltr and 330 ml cans.
DIET COKE:-
Diet Coke was born in 1982 and quickly become the No.1 sugar free drink in
diet-conscious America. Known as Diet Coke in the U.S., Canada, Australia and
Great Britain, and as Coca-Cola light in other
Countries, its now the No.3 soft drinks in the world. It’s the drink for people who
want no calories, but plenty of taste. Ad campaign around the world for Diet Coke
shares a playful, sophisticated and fun-loving attitude. Looking Good and Tasting
Great!
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MAAZA:-
Maaza was launched in 1976. Here was a drink that offered the same real taste
of fruit juices and was available throughout the year.
In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the
fruit drink category. Over the years, brand has become synonymous with Mango. This
has been the result of such successful campaigns like “Taaza Mango, Maaza Mango”
and Botal mein Aam, Maaza hain Naam”. Consumer regards Maaza as a wholesome,
natural, fun drink, which delivers the real experience of fruit.
The current advertising of Maaza positions it as an enabler of fun friendship moments
between moms and kids as moms trust the brand and the kids loves its taste. The
campaign builds on the existing equity of the brand and delivers a relevant emotional
benefit to the moms rightly captured in the tagline “Yaari Dosti Taaza Maaza”
It is available in SKUs of 200 ml RGB, 250 ml RGB, 125ml tetrapak and 200ml Tetra
pack.
VANILLA COKE:-
Vanilla Coke was launched in2002 in North America and subsequently in
various other markets across the world and met with immense success. The idea of the
refreshment of Coca-Cola with a hint of Vanilla was found very appealing when
tested in India and we launched Vanilla Coke in April 2
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The “Thanda Matlab Coca-Cola” campaign which was launched in 2002, had made
Coca-Cola India’s favorite so0ft drink and this helped launched vanilla coke as ‘Ice –
Creamy Thanda’, thereby making the new brand something familiar and comfortable
with that consumer.
Vanilla Coke was launched with high profile TV commercial featuring teen
heartthrob VIVEK OBEROI in remarkably new and different avatar. Directed by Ram
Madhvani, the TVC has become a rage in the country with people from various walks
of life using the term ‘WAKAW’ in various contexts. The Bappi Lahiri Track has also
become very popular.
The brand is currently available in 200 ml RGB/ 300ml RGB, 500 ml PET and 300 ml
cans.
SUNFILL POWDER DRINK:-
Sun fill powder drink has been developed locally based on the Indian
consumer preferences. We have kept in mind the Indian palate
(Taste/Sweetness/Sourness/Orange flavor). Sun fill is also present in other countries,
either in the form of fruit juice based drink, or in the powdered concentrate form in
countries like Indonesia, Sri Lanka, and Bangladesh. It has been developed using the
Coca-Cola Company’s expertise in the beverage business.
Sun fill regular priced at Rs. 2.50 per serves gives the consumer a world-class
product, which not only is convenient, but also has a very attractive price. The product
is available in single serve (23gms) & multi serve (200gms) and in 4 flavors –
Orange, Mango, Lemon and Pineapple.
Sun fill anand was launched with strategy cater to SEC C, D, E and rural India. It is a
non – sugared concentrate, which provide one serving at 50 paisa only. Anand has
also been launched in multilevel pack, which provides 22 glasses only at Rs 10.
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The advertising campaign emanates from the winning product and brand concept and
is based on extensive consumer research. Sun fill is bounty in the hands of the
housewife. It is ref
GEORGIA COFFEE:-
Coffee the Way Japan Likes It
It is a ready to serve, canned coffee that’s the best selling non-carbonated soft
drink in Japan. Georgia’s flavors blends are favorite of hard –working people.
Georgia can be served at room temperature, cold or hot. At the 1998 Olympic Winter
Games held in Nagano, Georgia became the first hot soft drink served at an Olympic
Games. Some of the Japan’s top comedians are featured in the series of comic
episodes that make up the drink’s current television ads.
Georgia coffee is available in Original, Mocha Kilimanjaro, Emerald, Mountain
Blend and a variety of other delicious flavors that are introduced from time to time.
POSITIONING/STANDING IN THE MARKET
PRODUCT:-
Coca-Cola returned to India in 1993and over the past ten years has captured the
imagination of the nation building strong association with cricket, the thriving cinema industry,
music etc. coca-cola has been strongly associated with cricket sponsoring the world cup in1996
and various tournaments, including the coca-cola cup in Sharjah in the late nineties. Coca-
Cola’s advertising campaigns “JO CHAHO HO JAYE” and “LIFE HO TO AISI “were very
popular and had entered the youth vocabulary. In 2002, coca-cola launched the campaign
“THANDA MATLAB COCA-COLA” which sky- rocketed the brand to make it India’s
favorite soft drink brand. In 2003, Coke was available for just Rs. 5 across the country and this
45
pricing initiative together with improved distribution ensured that all brands in the portfolio
grew leaps and bounds.
BRAND AMBASSADORS
Coca-Cola had signed on various celebrities including movie stars such as
Imran Khan, cricketers such as Sachin Tendulkar, Saurav Gangualy, southern
celebrities like Vihay in the past and today its brand ambassadors are Aamir Khan ,
Aishwarya Rai , Akshay Kumar , Vivek Oberai , Rani mukherjee , Bipasha Basu ,
Sonali Bendre and Cricketer Virendar Sehwag .
46
LEADERSHIP AT
COCA-COLA
“There’s never been a better time to be the part of The Coca-Cola Company. Our
people are dedicated to strengthening relationship with stake holders and communities
everywhere.”
48
Mr. 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. Under Isdell’s
leadership, the Coca-Cola Company is positioned for growth, guided by the mission
to provide the branded beverage that refresh people around the world, anywhere,
anytime, everyday. By making key decision making closer to the local markets, it has
spurred innovation, accelerated growth and fostered deeper connection to the
consumer. Simply put they are closure than over to us.
A talented and highly experienced world wide management team coordinates the new,
nimble and entrepreneurial network .The local strategy enables them to listen to all
the voices around the world asking for beverages that span the entire spectrum of
tastes and occasions.
The company quotes “what people want in the beverage is reflection of who they are,
where they live, who they work and play, and how they relax and recharge. Whether
you are a student in the United States enjoying a refreshing Coca-Cola, women in
Italy taking a tea break, a child in Peru is asking for a juice drink, or couple in Korea
buying bottled water after a run together, we are there for you.”
The company is determined not only to make great drinks, but also to contribute to
communities around the world through the commitments to the education, health,
wellness, and diversity.
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It strives be good neighbors, consistently shaping its business decision to improve the
quality of life in the communities in which it does business. It is a special thing to
have billions of friends around the world, and the company never forgets it.
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MISSION
Our mission is to refresh the world in mind, body & spirit and to inspire moment of
optimism through our brand and our action.
Create consumer products, services & communications, customer service and bottling
system strategies, processes and tools in order to create competitive advantage &
deliver superior value to:
Consumers as a superior beverage experience.
Consumers as an opportunity to grow profits through the use of finished drink.
Bottlers as an opportunity to grow profit and volume.
TCCC as a trade mark enhancement & positive economic value added.
Suppliers as an opportunity to make reasonable profits when creating real
value added in an environment of system-wide teamwork, flexible business
system & continuous improvement.
CCI Associates as superior career opportunity.
Indian society in the form of a contribution to economic and socio
development.
eKOsystem: The Coca-Cola Environmental Management System. The Coca-Cola
Company has 78 manufacturing location across 24 states of the country. The
Company has one single environmental system, eKO system,
implemented at all its operations in 202 countries
across the world. The eKO system is a tool that integrates
environment management with business planning
cycle. The eKO system primarily comprises of two
main facets namely:
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(i) Environment and
(ii) E Safety and loss Prevention (SLP)
Both the facets are aligned with international management system standards, ISO
14001 for Environment Management and OSHAS 18001 for Safety Management. As
on June 2005, 33 manufacturing units are certified to ISO 14001 and 8 units are
certified to OSHAS 18001 standards. Company owned bottling operations at Jaipur
received prestigious Golden Peacock Award on Environment Management for 2005.
The same award was also received by the company operations at Dasna, Ameenpur,
and Baddi for 2004, 2003 and 2002 respectively. The awards are conferred by
Institute of Directors in association with World Environment Foundation (WEF) in
recognition of effective implementation of Environmental and Quality Management
System (EMS) by these units.
Some of the Prime Environmental considerations followed in business decision are:
1. Environmental due diligence before acquiring land.
2. Environmental impact assessment before commencing operations.
3. Ground water and environmental surveys before selecting sites.
4. Diligent compliance with all regulatory environmental requirements.
5. Ban on purchase of refrigeration equipment containing CFCs (known to be
Ozone depleting).
6. Installation of effluent treatment plant at each manufacturing locations.
7. Separate collection and treatment of domestic and industrial effluent as per
Company OR Local Standard.
8. Separate discharge of industrial, domestic and storm water to prevent storm
water pollution.
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COMPANY POLICIES
The Coca-Cola eKO system are governed by five
major policies that affirm the environmental
responsibilities of The Coca-Cola Company and
serve as guidelines for our business partners around
the world. Each of these policies is supported by
specific requirements and practices that govern our
daily operations and are fundamental to achieving results consistent with
environmental leadership.
Our Five Policies are:
1. COMMITMENT
2. COMPLIANCE & BEYOND
3. MINIMIZING IMPACT, MAXIMIZING OPPURTUNITY
4. ACCOUNTABILITY
5. CITIZENSHIP
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SWOT ANALYSIS
Coca-Cola Company is one of the leading MNC in the world. It has made a
remarkable growth since it origin and it has got a good potential in spite of various
hurdles coming its way. By going through its SWOT analysis we can know much
more about the company
STRENGTH:
The company has got various strengths, which leads the company be a market leader.
Some of the strengths listed below:
A) Strong product line:
The company has got various fast moving products which are going great job in the
market. These soft drinks not only quench thirst but also refresh everyone it touches.
One of the strong brands of the company is Thumps Up, which specially doing well in
the Indian market. It has captured one of the major shares of the soft drink market.
B.) Advertising:
Advertising plays a major in promoting sales of the product. The company has got
one of the best advertising strategies. Appointing film actors, as the brand
ambassadors, makes a great impact on the mind of the customers. The company
should try to launch more and more advertising and sales campaigns to promote sales
to the maximum
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WEAKNESS:
As no man in this world is a complete man and so are the companies. Every company
has got weakness so as Coca-Cola Company too. Some of the weaknesses which the
company should overcome are as follows:
A.) Distribution network:
The company has got an average distribution network this is one of the reason why
the company fails to fulfill the demand of the customer at time of peak seasons. It
must go for some more bottling plants and should opt for better distribution channels
to increase the sales in the best possible manner.
B.) Pricing strategy:
The company has got a pricing strategy as there is no certainty of rising or fall of
price during the peak season. This also hamper the sales of the company as the
retailers and distributor get dilemma whether to place the next order or not as increase
or decrease in price may hamper their profit margin and blockage of the goods.
OPPORTUNITIES:
Instead of weakness and threats the company the company has got various
opportunities to which it has to go for. The opportunities for the company are as
follows:
A.) Large Market:
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As India is said to be one of the biggest market in the world, thus the company
survive for long and can expands to its length and width. Still there are thousand of
villages which have not been covered by soft drink companies. If the company targets
the rural market it can easily make large profits and thus can also satisfy its aim to
benefit and refresh the whole nation.
B.)Launch of other brands:
Coca- Cola Company has got more than 300 brands which is running successfully
over the world. Thus it can launch some more brands in the country, after studying the
demand and desire of the people and can deep its roots by winning their minds and
hearts.
THREATS:
Some of the threats which the can face:
(A) Competitors
One of the strong competitors of the company is Pepsi Co. thus it has to formulate
such strategies which make it to remain one step ahead and give a strong competition
to the competitors.
Some of the other competitor in the path of growth to the company is the local soft
drinks manufacturers who play an active part at the time of peak season. The other
local refreshers like Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the
company.
(B) Govt. Policies
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The policies of the government also play a major role for the company. The company
can not perform well or in its own way by violating the rules of the government. Thus
if the government formulates some policies which creates hindrances in the working
of the company it will prove to be one of the major threats.
MEANING OF TRANSPORTATION
COST Transportation cost means carrying cost which is huge expensive for company.
Transportation refers to the movement of product from one location to another, as it
makes it way from the beginning of the supply chain to the hands of the customer’s
hands. It plays a key role in every supply chain because products are rarely produced
and consumed at the same location. It is a significant cost most supply chains incur.
With the growth of e- commerce and the associated home delivery of products,
transportation costs have become even more significant in retailing. From the book
industry to the food industry, online firms are delivering products in a small number
to the customers instead of delivering in huge numbers to the retail stores. As the
result transportation cost is larger in fraction of the delivered cost of products sold
online.
Factors affecting carrier decisions
A carrier’s goal is to make investment decisions and set operating policies that
maximize the return on its assets. A carrier such as an airline, railroad or trucking
company must account for the following costs while investing in assets or setting
pricing and operating policies:
1. Vehicle related costs – This is the cost a carrier incurs for the purchase or the
lease of the vehicle used to transport goods. The vehicle related cost is
incurred whether the vehicle is used or not and is considered fixed for a short
term operational decisions by the carrier. While making long term strategic
decisions or medium term planning decisions, these costs are variable and the
57
number of vehicles purchased or leased is one of the choices that a carrier
makes. The vehicle related cost is proportional to the number of vehicles
leased or purchased.
2. Fixed operating cost – This includes any cost associated with the terminals,
airport gates, and labour that are incurred whether vehicles are used or not.
Examples include the fixed cost of a trucking terminal facility. If drivers were
paid independent for their travel schedule, their salary would also be included
in this category. For operational decisions, these costs are fixed. For planning
and strategic decisions involving the location and size of the facilities, these
costs are variable. The fixed operating cost is generally proportional to the size
of operating facility.
3. Trip related cost – This cost is incurred each time a vehicle leaves on a trip
and includes the price of labour and fuel. The trip related costs depends on the
length and duration of the trip but is independent of the quantity shipped. This
is considered variable while making strategic or planning decisions. The cost
is also considered variable while making operational decisions that affect the
length and duration of the trip.
4. Quality related cost – This category includes loading/unloading costs and a
portion of the fuel cost that varies with the quantities being transported. These
costs are generally variable in all transportation decisions unless labor used for
loading and unloading is fixed.
5. Overhead costs – This category includes the cost of planning and scheduling a
transportation network as well as any investment in information technology.
When a truck company invests in routing software that allows a manager to
device good delivery routes, the investment in the software and its operation is
included in the overheads.
A large portion of the carrier’s cost is independent of the quantity being carried on the
truck. It does however depend on the utilization and that is affected by routing and
scheduling of vehicles. A carrier’s decisions are also effected by the responsiveness it
seeks to provide its target segment and the prices that the market will bear.
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PROCESS OF GIVING TRAVELLING
COST
Before giving the traveling cost the company has some format which has to fulfill
both by the Traveling Agencies as well as the company. One form is given by
company and one form form is given by Traveling Agent. In this form following
things are required:-
BSR (INVOICE NO):-
DPG (INVOICE NO):-Duty Paid Goods
ERA NO.:- Empty Received advice
TRANSPORT SLIP NO.:-
TRANSPORT CONFIRMATION NO:-.
DATE:-
NAME OF DISTRIBUTORS:-
NAME OF TRANSPORTER:-
TRUCK NO:-
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DETAIL OF FULL SENT :-
DETAIL OD EMPTY SENT :-
DETAIL OF ALL KIND OF DAMAGES:-
FRA:-Fulls Received Advice
SIGNATURE OF FOLLOWING:-
PREPARED BY:- Shipping Executive
CHECKED BY:- Sr. Shipping Executive
APPROVED BY:- Shipping Manager
Before giving the traveling cost the company has to maintain all the data in two
software one is Excel sheet and other is Jaguar which is company’s own software.
Invoice no are unique no so there is no chance of double tracing and it has to link with
Jaguar so there is no chance of default. There are two rates of traveling first one is LP
rate and other is DCM rate. DCM rates stands for 300-350 cases, LP rate stands for
500-550 cases.
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PROCESS OF GIVING TRANSPORTATION
COST
Finance Department gives order to Shipping Department for loading according to the
demand of distributors. Shipping Department load the truck with fulls and the
transporter transport the fulls to the distributors. Distributors unload fulls and load
empties. Then the transporter transport empties to the Shipping Departments. The
transporters raise bills of empties and fulls. Shipping Departments check the empties
or fulls return, if there is any damage then it is written on the bill and send to Finance
Department. Finance Department track all the bills and make payment to the
distributors.
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Order send by FinancDepartment
Order received by shipping department
Loading fulls
Send to Distributors
Distributors unload empties
Shipping department receipt empties
Transporters make bills
Bills track in Finance Department
Process of payment is made in Finance Department
Final Payment
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When the goods are transported by the Transporters they give the detail to the
Shipping department how much they carry how much kilometers run and how much
they charge. Before giving goods to the transporter company make an agreement for
payment. The Shipping department prepares TRANSPORT SLIP CONFIRMATION.
It is prepared by the shipping executive and check by the Sr. executive and approved
by the Shipping manager.
When it is approved by the shipping manager it comes to Finance department. the
executive of the finance department track it in Excel Sheet and Jaguar. When it is
track in excel sheet the payment request send in Journal Voucher to other executive
for entry in Tally. After entry of the freight it is checked by the team leader of
executive.
When all the process of entry is true and the amount is true it is given for making
cheque.
When cheque is made it is send to Finance Manager or Associated Finance Manager
for signature. When Finance Manager or Associated Finance Manager make signature
on the cheque it is given for dispatched.
When payment is made to the Party the process of reconciliation is done with the
Party A/c. If there is any missing it is rectify with the help of the documents. If there
is any excess payment it is adjusted with the Party.
The process of payment is so long. There are so many people who check this entire
thing for the accuracy of the payment. Though here so many people for freight there is
very little chance for mistake in payments.
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COMPARATIVE COST ANALYSIS OF SAVING BY THE
SHIPPING DEPARTMENT IN ONE QUARTER OF OFF AND
PEAK SEASON
In this part of the project a comparison is done between the percentage of savings
done by the shipping department during a quarter of off season (October, November
and December) and a quarter of peak season (March, April and May).
Since the accounting procedure in the Coca Cola, Varanasi is based on the method of
standard costing thus every year an Annual Business Plan (ABP) is prepared for each
department and those targets are communicated to the respective departments. Based
on those standards the accounting for the profits generates or the savings made are
done for each department and accordingly plans for the next month are made
depending on the situation and the season.
In this cost analysis the budgeted plans for the shipping department are being
compared to those expenses actually occurred during that period. There are some
major heads for the shipping department in Coca Cola and those are:
1. Freight
2. Loading charges
3. Unloading charges
4. Sorting charges
My study is also based on these heads. First we must understand the work done under
these heads and for what the money is charged.
Freight – This is the amount paid to the transporter for taking the fulls to the
distributors and coming back with the committed empties or in other words it can be
said that these are transportation charges paid by the company for the transportation
65
of final goods from the plant to the distributor’s warehouse and transporting the
empty bottles from the distributors warehouse to the plant.
Loading charges – These are the charges paid to the labour for loading a case into the
transportation vehicle.
Unloading charges – These are those charges paid to the labour for unloading the
empty bottle cases from the transportation vehicle.
Sorting charges – These are those charges paid to the labour for sorting the bottles
brand wise and those of the competitors.
In this study all these heads will accounted for each month and an average percentage
saving will be found out for the different quarters and compared for finding whether
the shipping saves more in the peak season or in the off season and then reasons for
the finding will be given at the end of the analysis.
BUDGETED AMOUNTS FOR DIFFERENT MONTH
MONTHS BUDGETED AMOUNT
October 2,94,200
November 1,53,936
December 1,87,188
March 3,61,818
April 2,80,116
May 3,67,560
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LOADING, UNLOADING & SORTING CHARGES
These charges are given per case in Rs.
Month Loading Unloading Sorting
October 0.16 0.2 0.24
November 0.16 0.2 0.24
December 0.16 0.2 0.24
March 0.13 0.16 0.2
April 0.13 0.16 0.2
May 0.13 0.16 0.2
It has been assumed that the number of cases loaded is equal to number of cases
unloaded.
Also the capacities of the two transport vehicle used are:
LP = 550 – 700 cases
DCM = 350 – 365 case
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CALCULATION OF AMOUNT PAID FOR
LOADING, UNLOADING & SORTING
LOADING
Month
No. of cases
loaded
Loading charges Total
October 53,730 0.16 8,596.8
November 28,557 0.16 4,569.12
December 25,728 0.16 4,116.48
March 3,07,843 0.13 40,019.59
April 4,92,433 0.13 64,016.29
May 6,33,872 0.13 82403.36
UNLOADING
Month No. of cases unloaded Unloading charges Total
October 53,730 0.2 10,746
November 28,557 0.2 5,711.4
December 25,728 0.2 5,145.6
March 3,07,843 0.16 49,254.88
April 4,92,433 0.16 78,789.28
May 6,33,872 0.16 1,01,419.5
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SORTING
Month No. of cases sorted Sorting charges Total
October 13,324 0.24 3,197.76
November 7,273 0.24 1,745.32
December 6910 0.24 1,658.4
March 35,106 0.2 7,021.2
April 44,547 0.2 8,909.4
May 57,387 0.2 11,477.4
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CALCULATION FOR FREIGHT CHARGES
FREIGHT CHARGES BY Kms for DISTRIBUTORS
Party code Party Name Place
1 A. K. DISTIBUTORS NAINI NAINI
2 A.M.DISTRIBUTORS NAINI NAINI
3 A.S.DISTRIBUTORS,CHILBILA CHILBILA
4 A.V.A. AGENCY BHADOHI BHADOHI
5 AARTI ENTERPRISES BALLIA BALIA
6 ABHISHEK TRADERS JAUNPUR
7 AGRAWAL AGENCY ALLAHABAD ALLAHABAD
8 AKASH COLD DRINKS SAIDABAD ALLAHABAD
9 AMAN TRADERS,KOPERGANJ KOPERGANJ
10 AMUL ENTER PRISES GHOSHI MAU
11 ANSHIKA ENTERPRISES,VARANASI SHIVPUR
12 ANUJ ENTERPRISES PHOOLPUR PHOOLPUR
13 ARIHANT TRADING COMPANY,MIRZAPUR MIRZAPUR
14 ASHISH TRADERS,BALIA BALIA
15 ASHU MARKETING ALLAHABAD
16 BABA AGENCIES ALLAHABAD
17 BABULAL &COMPANY GAZIPUR
18 BALAJEE ENTER PRISES JAUNPUR JAUNPUR
19 BANDEVI ENTERPRISES,BADUA BADUA GODAM
20 BHAIRO AGENCY DULLAHPUR DULLAHPUR
21 BHARAT COLD DRINKS,DUBIYA MODE DUBIYAMODE
24 BRIGANATH PRAM PRREMSHANKAR BARIA
25 CHAWALA AGENCY ALLHABAD ALLAHABAD
26 CHOURASIA COLD DRINKS,MUBARAKPUR MUBARAKPUR
27 DILIP COLD DRINKS. MIRZAPUR
70
28 DILSHAD COLD DRINKS ALLAHABAD
29 Durga Trading Allahabad ALLAHABAD
30 EKTA AGENCIES ALLAHABAD
31 EVERGEEN ENTER PRISES MAU MAU
32 FREINDS ENTERPRISES,MADHUBAN MADHUBAN
33 G.M.DISTRIBUTOR GHURPUR(NAINI) GHURPUR
34 GAJENDRA ENTERPRISES RENUKOOT
38 GAURAV ENTERPRISES,ALLAHABAD ALLAHABAD
39 GAURAV TRADERS BALIA
40 GOMTI TRADERS ALLD ALLAHABAD
41 GUPTA ENTERPRISES,BHADORA BHADORA
42 GUPTA SALES ASSOCIATION MARHIYAHU
43 HARI OM ENTERPRISES GAZIPUR
44 HARIYANA AGENCY OBRA RENUKOOT
45 HARSH ENTERPRISES,DHUDDI DHUDDI
46 HARSHIT ENTERPRISES MIRZAPUR
47 HASAN COLD DRINKS KAZZAKPURA VARANASI
48 J .P. ENTERPRISES MAUIMA MAUIMA
49 JAI AMBEY COLD DRINKS,JIYANPUR JIYANPUR
50 JAI MAA COLD DRINKS NARIBARI
51 JAI MAA VAISHNAV MAU
52 JAI MATADI COLD DRINKS MAU
53 JAI PRAKASH ENTERPRISES,SIPHA SIPHA
54 JAI SHANKAR ENTERPRISES,BANSDIH BANSDIH
55 JAI SRI RAM AGENCY VARANASI
56 JAIN AGENCY MOHMDABAD MOHMDABAD
57 JAISWAL TRADERS MAU MAU
58 JAISWAL AGENCIES,SUJAN GANJ SUJANGANJ
59 JYOTI AGENCY BHADOHI BHADOHI
60 JYOTI ENTERPRISES MUGALSARAI MUGALSARAI
61 KRISHNA ENTER PRISES VARANASI
62 KULDEEP COLD DRINKS HANUMANGANG HANUMANGANJ
63 KUMAR AGENCY,BADLAPUR BADLAPUR
64 LAXMI Traders ALLAHABAD
71
65 LOVE GERU ENTERPRISES ALLAHABAD
66 M/S DURGA TREDERS KOROAN KORAON
67 MAA ALOPE JEE CD,SAHSON SAHSON
68 MAA DURGA COLD DRINKS,KACHWA BAZAR
KACHWA
BAZAR
69 MAA KALI AGENCIES ALLAHABAD ALLAHABAD
70 MAA MANSHA COLD DRINKS GHAZIPUR GAZIPUR
71 MAA PARWATI ENTERPRISES,GHORAWAL GHORAWAL
72 MAA SAVITRI AGENCIES,ALLAHABAD ALLAHABAD
73 MAA SHANTI ENTERPRISES,SONBHADRA SONBHADRA
74 MAA SHARDA COLD DRINKS,JHUSI JHUSI
75 MAA TRIVENI DRINKS ALLHABAD ALLAHABAD
76 MAA VAISHNAV COLD DRINKS,RASRA RASRA
79 MADHU ENTERPRISES,SHANKARGARG, ALLD. Shankargarh
80 MAHAVEER ENTERPRISES GAZIPUR
81 MAMTA ENTERPRISES,BINA BINA
82 MANIK ENTERPRISES,MRZAPUR MIRJAPUR
83 MANISH COLD DRINK KOIRONA
84 Manju Enterprise VARANASI
85 MANOJ TRADERS ALLHABAD ALLAHABAD
86 MISHRA COLD DRINKS BELTHRA BELTHRA
87 MITTAL AGENCY BEEJPUR BEEJPUR
88 NARAYANA ENTERPRISES,JHANAGANJ JAHANAGANJ
89 NAVEEN AGENCIES,SULEMSARAI SULEMSARAI
90 NEERAJ COLD DRINKS AZAMATGARH AZAMATGARH
91 NEETIN ENTERPRISE JAUNPUR
92 NEHA TRADERS SIKANDARPUR SIKENDERPUR
93 NIGAM ENTERPRISES MACHHLI MACHALISHAHR
94 NIRMAL AGENCY ALLAHABAD ALLAHABAD
95 OM DISTIBUTORS VARANASI VARANASI
96 OM SHRI SHARDA LAXMI AGENCY ALLAHABAD
97 P P ENTERPRISES VARANASI
98 PARMATAMA ENTERPRISES ,GAIPURA GAIPURA
72
99 PARWATI COLD DRINKS HANDIA HANDIA
100 PATEL COLD DRINKS,SARAI MAMRESH
SARAI
MAMRESH
101 PAWAN ENTER PRISES VARANASI VARANASI
102 PAYAL COLD DRINKS LALGANJ(MZP)
103 PINTU COLD DRINKS AGENCY ALLAHABAD
104 PITAMAH COLD DRINKS GHAZIPUR GAZIPUR
105 POOJA TRADERS,RATANPURA RATANPURA
106 Pradeep CD,Allahabad ALLAHABAD
107 PRATAP ENTERPRISES, AZAMGARH
108 PREM COLD DRINKS,BARAUT BARAUT
109 PRINCE DISTRIBUTOR,KARCHANA BAZAR KARCHANA
110 PRITANSHI AGENCY,SHAHGANJ SHAHGANJ
111 R.K ENTER PRISES SAID PUR GAZIPUR
112 R.K.DISTRIBUTOR,VARANASI VARANASI
113 RACHANA COLD DRINKS KHARIANI
114 Rahil Enterprises ALLAHABAD
115 RAHUL TRADERS BHADOHI
116 RAINE COLD DRINKS MEZA ROAD MEZAROAD
117 RAJ AGENCY,SORAON SORAON
120 RAJPOOT SPORTS SHAKTINAGAR
121 RAKESH COLD DRINKS ATTROLIYA ATROULIA
122 RATAN AGENCIES,TELIYARGANJ ALLAHABAD
123 RITESH AGENCY GOPIGANJ GOPIGANJ
124 S.S ENTERPRISES LALGANJ
125 SAHU COLD DRINKS,DEVGAON DEVGAON
126 SANGAM ENTERPRISES VARANASI
127 SANGAM TRADERS,MONGRABADSAHPUR MONGRABAD
128 SANJAY AGENCIES ALLAHABAD
129 SANJAY TRADERS,JANGHAI JANGHAI
130 SANTOSH COLD DRINKS,ANAPARA ANAPARA
131 SARA TRADERS JAUNPUR
132 SARDAR COLD DRINKS MYORPUR MYORPUR
73
133 SARNATH COLD DRINKS VARANASI
134 SARVAGYA AGENCIES,ALLAHABAD ALLAHABAD
135 SATYA SAI ENTERPRISES,VARANASI MANDUADIH
136 SATYAM ENTER PRISES KHUTHAN KHUTHAN
137 SHABNAM COLD DRINKS GAZIPUR
138 Shalimar CD,Azamgarh CHANDPATTI
139 SHANTI ENTERPRISES,BALIA BALIA
140 SHARDA ENTERPRISES VARANASI
141 SHARDA ENTERPRISES AZAMGARH AZAMGARH
142 SHARDA ENTERPRISES(RAILWAY) MUGALSARAI
143 Sharma Enterprise BHAURALI
144 SHASHI ENTERPRISES AZAMGARH
145 SHIV COLD DRINKS CHEETBARAGAON BALIA
146 SHIV GANGA ENTERPRISES,LALGOPALGANJ LALGOPALGNJ
147 SHIV SHAKTI ENTER PRISES AURAI AURAI
148 SHIV SHANKAR AGENCIES ALLAHABAD
149 SHIV TRADERS AZAMGARH
150 SHIVAM AGENCY VARANASI
151 SHREE DISTRIBUTORS ALLAHABAD
152 SHRI SAI HARI ALLAHABAD
153 SHUBHI SANKAT MOCHAN AGENCY ALLAHABAD
154 SIDDARTH COLD DRINKS MGL- MUGALSARAI
155 SINGH COLD DRINKS,NANDGANJ NANDGANJ
156 SITA RAM & SONS KATRA RENUKOOT RENUKOOT
157 SM ENTERPRISES ALLAHABAD
158 SNEH RISHU ENTERPRISES JAUNPUR JAUNPUR
159 SRI BAJRANG ENTERPRISE MAU
162 SRI RAM & BROTHERS-NAGRA BALIA
163 SRI RAM ENTERPRISES VARANASI
164 SUBHAM AGENCY SIRATHU SIRATHU
165 SUPER AGENCY ALLAHABAD
166 SURBHI ENTERPRISES AZAMGARH
74
167 TAQEER COLD DRINKS ALLAHABAD
168 TRIPATHI COLD DRINKS MUBARAKPUR
169 UMESH CORPORATION,RENOOKOOT RENOOKOOT
170 USHA ENTERPRISES MEERGUNJ
171 V&K SK MIRZA PUR MIRZAPUR
172 VAISHNAV DISTRIBUTORS,CHOUBEPUR CHOUBEPUR
173 VANDANA AGENCY VARANASI
174 VARMA AGENCY MUBARAKPUR MUBARAKPUR
175 VASU AGENCY,MEHRUDEEH MEHRUDEEH
176 VIMALA ENTER PRISES JIGANA JIGNA
177 Vishal Enterprise JAUNPUR
178 VISHANATH COLD DRINKS CHOUBEPUR CHOUBEPUR
179 VIVEK COLD DRINKS BHARWARI BHARWARI
180 V'N ENTER PRISES ROBERTGANJ ROBERTGANJ
181 YADAV AGENCY RAMPUR RAMPUR
182 YASH DISTRIBUTERS VARANASI
183 YASHARTH AGENCY,ALLAHABAD ALLAHABAD
184 ZISHAN COLD DRINKS BILIRYAGANJ
For sake of convenience and shortage of space from here party codes will be used
over the party name. Also some of these notations will be used to save the space:
1. PC – Party Code
2. CD – Cases Demanded
3. NLP – Number of LP trips
4. NDCM – Number of DCM trips
5. LPF – LP Freight (two way)
6. DCMF – DCM Freight (two way)
7. TLPF – Total LP Freight
8. TDCMF – Total DCM Freight
9. TF-Total Freight
75
COST SHEET OF HINDUSTAN COCA COLA BEVERAGES PVT LTD.
PARTICULARS
AMOUNT PER
UNIT IN RS
200ML 300ML 2L
RAW MATERIAL CONSUMED 1.83 2.69 15.96
DIRECT LABOUR 0.32 0.71 7.34
PRIME COST 2.15 3.4 23.3
ADD: FACTORY OVERHEAD 1.51 1.95 6.35
WORKS COST 3.66 5.35 29.65
ADD OPENING WIP 0.14 0.35 1.45
LESS CLOSING WIP 0.15 0.45 1.25
COST OF GOODS MANUFACTURED 3.95 6.15 32.35
ADD GENERAL AND ADMINISTRATION EXP 0.85 1.05 3.24
ADD SELLING AND DISTRIBUTION EXP 1.35 1.65 7.05
ADD OPENING STOCK OF FINISHED GOODS 0.14 0.23 1.26
LESS CLOSING STOCK OF FINISHED GOODS 0.15 0.18 1.35
COST OF GOODS SOLD 6.45 9.26 45.25
PROFIT 0.55 0.74 4.75
SALES 7 10 50
RATIO OF FREIGHT WITH DIFFERENT COST
FREIGHT 0.35 0.42 2.05
RATIO OF FREIGHT WITH SALES
0.35/7*100 5%
0.42/10*100 4.20%
2.05/50*100 4.10%
RATIO OF FREIGHT WITH COST OF GOODS SOLD
0.35/6.45*100 5.42%
0.42/9.26*100 4.54%
76
2.05/45.25*100 4.53%
RATIO OF FREIGHT WITH COST OF MANUFACTURE
0.35/3.95*100 8.86%
0.42/6.15*100 6.83%
2.05/32.35*100 6.34%
RATIO OF FREIGHT WITH WORKS COST
0.35/3.66*100 9.56%
0.42/5.35*100 7.85%
2.05/29.65*100 6.91%
RATIO OF FREIGHT WITH PRIME COST
0.35/2.15*100 16.28%
0.42/3.4*100 12.35%
2.05/23.3*100 8.80%
77
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the problem.
It may be understood as a science of studying how research is done scientifically. In it
we study the various steps that are generally adopted by the researcher in studying his
research problem along with logic behind them . it is necessary for the researcher to
know not only the research methods/techniques but also the methodology used.
Researchers not only need to know how to develop certain indices or tests , how to
calculate mean or median or mode, how to apply particular research techniques but
must also know which of these methods or techniques are relevant and what would
they mean and indicate and why.
Research process consists of series of actions or steps necessary to effectively carry
out the research.
RESEARCH DESIGN:
The function of research design is to provide for collection of relevant evidence with
minimal expenditure of time effort and money. I followed the census method as I did
daily route riding along with the executives and the salesmen. I got opportunity to
meet and interact with each one of the retailers and closely came to know specific
need of the promotion of Coca-Cola in the market as a whole. I covered the
distribution area under highways at Faizabad area. Under the supervision I got
number of relevant data from on spot inspection and personal observation.
METHODS OF DATA COLLECTION:
Observation and interaction with the retailers provided me in depth knowledge about
the availability of changes in promotional items provided by Pepsi and Coca-Cola by
the distributors. I collected all vital data from the outlets visits and survey during my
79
summer training and which would be of high consideration regarding the designing of
the coming years marketing budget by the Coca-Cola Company.
The survey sheet was instantaneously equipped of data duly observed by me and in a
systematic manner. The data thus inculcated is through Primary Source by Personal
Interviews, Enquiries and Observation. The responses thus received were also
encouraging on my behalf and as well as the company.
1.) MARKETING RESEARCH OBJECTIVES:
a.) To understand the market study to know the Coca-Cola
transportation cost.
b.) Comparative transportation cost analysis with regard to
Pepsi and Coca-Cola.
2. TYPE OF STUDY : EXPLORATORY
3. RESEARCH AREA : LUCKNOW & FAIZABAD REGION
4 SOURCE OF INFORMATION : (PRIMARY)
In this type of data collection mode the interviewer uses the wording and order that
seems most appropriate in the context of each interview. These interviews are useful
in obtaining a clearer understanding of the problem and determining what areas
should be investigated.
80
5 DATA COLLECTION INSTRUMENT : (SURVEY SHEET)
There are several ways of collecting the information considerably in the context of
money costs, time and other resources at the disposal of the researcher.
I collected data for my project work through the medium of Survey Sheets
In this method I got the prepared sheets from the company comprising of relevant
questions related with my project. Then I contacted respondents on their shops along
with the sheets for collecting the information.
6.) RESEARCH APPROACH: (SURVEY METHOD)
7.) SAMPLING PLAN:
Sample design is a definite plan determined before any data are actually collected for
obtaining a sample for a given population. The sample design to be used must be
decided by the researcher taking into consideration the nature of inquiry and other
related factors.
I have paid attention on the following points while designing the sample:
a) Target population
b) Sample Unit
c) Sampling Size
d) Sampling Method
a). TARGET POPULATION:
the population of the study consisted of retailers and dealers. Target population was
taken from the city of FAIZABAD.
b). SAMPLING UNIT:
Random sampling was chosen that is where any outlet of the whole population was
likely to be selected as any other outlet that is all the outlets of the population have
equal chances.
Shops pursuing promotional tools (both dealers and retailers) in FAIZABAD cities.
81
c). SAMPLE SIZE:
a total of 100 shops were observed from the city -FAIZABAD.
d). SAMPLING METHOD: Purposive Sampling
82
FINDINGS
1) The cost of transportation cost is very high.
2) The process of payment of freight is so long.
3) The Transporter of the company is not satisfied with late payment.
84
LIMITATION
This report is based on only 100 peoples.
Observed only the people of FAIZABAD city
Purity of report depends on the respondents how willingly they have given
the answer
Respondent were giving biased answers.
Many respond were not ready to give answers.
85
ANALYSE OF FREIGHT FOR COST
SAVING
1. When there is off season the company should have take empty bottle with club
load because when the company take it with two parties the cost of freight will
reduce.
2. When there is off season the company should take one way in very less time,
if company take less time one way receipt it reduced the cost of freight.
3. When there is off season the company should reduce the detention cost, it is
necessary for cost saving.
4. When there is off season the company should promote the incremental cost
because it reduce the cost of freight due to extra case carry.
5. When there is off season the cost of freight on daily loads is very high, this
time sales is very low so the company should reduce daily loads.
86
Factors Affecting The transportation
Cost:
Diesel Rates: - The cost of diesel is very important for transportation cost if the
rate of diesel is increase there is changes in the agreement according to the
increased.
Number of Competitor:- If the number of transporters are very much in the
market then it is possible to bargain with the transporters for transportation cost, if
there is less transporter in the market then we have no choice for bargain.
Monopoly of the transporter comes and we have to use the high rate transportation
cost.
Demand of the products:- If the demand of the product is very high and the
transporters show the demand of product and think if they attached with the
company it is beneficiary for the transporter then the cost of transportation is low.
Area to Covered:- The other factor of the transportation cost is area to cover, if
the area is far from the factory the cost of transportation is high so area is very
important for the transportation cost.
Distribution Channel:- If distribution channel is very high then the
transportation cost for the company is very less because the company send the
goods to the mediators.
Competitor’s Market Strategy:- If the transporter company show the strategy
of the market that it is beneficiary for them then they reduced transportation cost.
87
Season:- In the peck season the transporters carry a huge number of product,
there is no change in the agreement but they carry goods in heavy vehicles and the
cost of transportation is very less in the heavy vehicles.
No. in Units
88
This is the graph of fulls which carry by the transporters during the peck season, off
season or the starting peck season. We can easy understand by showing the graph that
in the peck season heavy truck carry goods and small truck carry goods according to
the sales, in peck season sales are very much so heavy trucks carry more then small
truck.
No. in Units
89
RECOMMENDATION AND
SUGGESSION1) The company has to make more club load in off season for reduce the
transportation cost.
2) The company has to reduce the detention cost.
3) The company has to reduce one way carries.
4) If any area of the Market is far from the factory the company should make
distribution channel for that location.
91
CONCLUSION1) The cost is very high.
2) The various Retailer had an enormous demand for better GSB’s and in many
cases of DPS for a better, impressive outlet look to attract consumers.
3) The endless demand of visicoolers in order to store large quantity of stock as a
part of marketing and distribution promotional function of the company is
studied therein.
4) The steady flow of the company’s promotional accessories could be felt
irrespective of the consumption of the outlets of the product. For example:
racks, counters, sign boards, etc.
5) In a competitive environment the company got to study the schemes of their
closest rivals, which they followed and in return fulfilled, the needs regarding
their outlets set up.
6) Timely check up of the proper usage of the Co’s assets (SGA) being made as
well as their malfunctioning is rectified.
7) Misuse of the Coca-Cola SGA’s should be brought into consideration as a
retailers, stock, other companies, stock and depreciate the demand of the
source company.
8) The archrivals product study can be entertained from the retailers and the
privilege on their part is known which helps in formulation of better marketing
promotional scheme’s
9) Pepsi’s regular stockholders be traced and break up by providing motivational
introductory offers enhancing the market capture.
10) Coca-Cola should try to make arrangements so that the marketing
representatives would visit the retail outlets regularly and try to solve the
92
retailers, as well as the distributors, problems which they usually face during
the peak season.
11) Better efficient sales representatives be appointed to update the retailers about
the schemes in comparison to Pepsi. This would encourage a curiosity
regarding the Coca-Cola schemes among them.
12) The complaints of the retailers be studied and paid attention of the highest
degree to ensure better market capturing.
BIBLOGRAPHY
BOOKS:-
Finance Management – R. Radhaswami
Financial Management – M. Y. Khan
FUTURE OF BUSINESS
ET Knowledge Series- Marketing Management
Barry Berman, Joel R. Evans-Retail and Marketing Management: A Strategic
Approach
MAGAZINES / NEWSPAPERS:-
Business World
Business Times
The Financial Express
The Times of India
The Economics Times
The Business Standards
REFERENCES:-
www.cocacola.com
www.foodinfast.com
www.food-n-fast.com
www.rocsearch.com
93
ANALYSIS and INTERPRETATION
How many units do you sold in every week in range?
Ans.
A) Less than 1000 unit B)1000-5000 unit
C) 5000-10000 unit D)more than 10000 units
94
QUES-2
How much stock you have to keep every month?
Ans.
A) Less than 1000 unit B)1000-5000 unit
C) 5000-10000 unit D)more than 10000 units
95
Ques-4 what are the expectations of the distributors from you?
Ans.
a.) Public grievance b.) Stock maintenance
c.) Business promotion d.) Transportation
97
Ques no-5 which Mode of payment used by Retailer ?
a) Cheque b) Demand Draft
c)Post Dated Cheque d) Cash
98
Ques-6 Average sales turnover in last one year?
a.) 10,000,00 unit b.) 12,000,00 unit
b.) 15,000,00 unit d.) 20,000,00 unit
Unit in Lakhs
99
Ques-7 How much unit have you sold in every week in range?
a)10,000-15,000 unit b.) 15,000-20,000 unit
c)20,000-25,000 unit d.)25,000-30,000 unit
Unit in Lakh’s
100
Ques-8
What is the range of profit you earn per month?(Average)
a) Approx. 20,000 b) Approx. 30,000
c) Approx. 40,000 d) Approx. 50,000
101
Ques-10
If there is any damage/ problem during of transportation of goods, what is
coverage by the company and channel members?
a) Replacement of goods
b) Cost cutting of damaged goods
c) Compensation due to damage
103
QUESTIONNAIRE FOR
DISTRIBUTORS
Average sales turnover in last one year?
c.) 10,000,00 unit b.) 12,000,00 unit
d.) 15,000,00 unit d.) 20,000,00 unit
How much unit have you sold in every week in range?
a.) 10,000-15,000 unit b.) 15,000-20,000 unit
e.) 20,000-25,000 unit d.)25,000-30,000 unit
What is the range of profit you earn per month?(Average)
a) Approx. 20,000 b) Approx. 30,000
c) Approx. 40,000 d) Approx. 50,000
How much stock you have to keep in each month to open sales?
a.) 5,000 units b)10,000 units
c) 15,000 units d) 20,000 units
Festival offers come from company?
a) Discount offers
b) Free gift offers
c) BOTH
What offers are provided in festivals to your retailers?
a.) Bonus Stock b.) Festival discount
c.) Festival utility gifts d.) All of these
What are the expectations of the company from the channel members?
a.) Proper distribution of goods
b.) Customer satisfaction
c.) Business promotion
d.) Market analysis
How often is the performance evaluation done and how are goals set? Please tick
() The option that applies.
Goal settings
104
( ) Quarterly ( ) Bi-Annually
( ) Annually ( ) Monthly
Performance Evaluation
( ) Weekly ( ) Bi-Annually
( ) Monthly ( ) Quarterly
Mode of payment
a.) Cheque b.) Commercial Banking
c.) Internet Banking d.) Demand Draft
What is the credit period?
a.) 1 weeks b)2 weeks
c) 3weeks d) 4 weeks
What is the credit sale?
a.) Approx.1,00,000 b)Approx.1,50,000
c)Approx.2,00,000 d)Approx.2,50,000
Mode of transportation
( ) Railways ( ) Plane
( ) Cargo ship ( ) Roadways
If there is any damage/ problem in time of transportation what is coverage by
the company and channel members?
a.) Replacement of goods
b.) Cost cutting of damaged goods
In case of new product/ change in technology, Does Company informs about
the product to their channel members?
a.) Yes
b.) No
Communication among the channel members (Hand shaking process)
One way ___________________________
Two way ___________________________
105
QUESTIONNAIRE FOR RETAILER
How much unit have you sold in every week in range?
Ans.
B) Less than 1000 unit B)1000-5000 unit
C) 5000-10000 unit D)more than 10000 units
How much stock you have to keep every month?
Ans.
B) Less than 1000 unit B)1000-5000 unit
C) 5000-10000 unit D)more than 10000 units
Do festival offers come from the distributors?
a) YES b) NO c) SOMETIMES
What are the expectations of the distributors from you?
Ans.
a.) Public grievance b.) Stock maintainence
c.) Business promotion c.) Transportation
Does distributer provide you productson credits?
a) YES b) NO
What is the limit of credits?
a.)Less than 5000 unit b.) 5000 unit To 10000 unit
c.)10000 unit To 15000 unit d.) More than 15000 unit
Mode of payment:-
a) Cheque b) Demand Draft
c)Post Dated Cheque d) Cash
Does a distributor provide any gift for good sales?
a) YES b) NO
What is the mode of transportation?
a) Airways b) Railways c)Roadways
In case of new product, does distributors inform you about the product?
106
a) YES b) NO
What is the method of communication between you and distributors?
a) One way b)Two ways
Are you satisfied with the services provided by distributor?
a) YES b)NO
107