COCA COLA COMPLETE REPORT
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Transcript of COCA COLA COMPLETE REPORT
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HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED
PROJECT REPORT
Monitoring the health of a channel partner
CollegeALLIANCE
SCHOL OF MANAGEMENT
M.B.A (2012-2014)
NAVEEN DSOUZA
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
CHAPTER 2: HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED (HCCBPL)
CHAPTER 3: ORGANIZATION STRUCTURE OF COCA-COLA
CHAPTER 4: DIVISIONS WITHIN COCA-COLA
CHAPTER 5: NATURE OF BUSINNESS WITHI ALTERNATIVE
BEVERAGES
CHAPTER 6: DISTRIBUTION MODEL FOLLOWED
CHAPTER 7: PARAMETERS WHICH DETERMINE THE HEALTH OF A
CHALLEP PARTNER
CHAPTER 8: SUGGESTIVE METHODS TO INCREASE THE HEALTH
OF A CHANNEL PARTNER
CHAPER 9: CONCLUSION
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CHAPTER 1: INTRODUCTION
_______________________________________________
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Companys beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-
drink powder products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating
in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has
successfully applied a simple formula on a global scale: Provide a moment of refreshment for a
small amount of money- a billion times a day.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the Company.
This unique worldwide system has made The Coca-Cola Company the worlds premier soft-drink
enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other
consumer product, has brought pleasure to thirsty consumers around the globe. For more than
115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They
aim at managing their business well with people who are strongly committed to the Company
values and culture and providing an appropriately controlled environment, to meet business
goals and objectives. The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Companys assets and resources
whilst limiting business risks.
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CHAPTER 2: HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED (HCCBPL)
_______________________________________________
ABOUT THE COMPANY
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its
formula to the Government and reduce its equity stake as required under the Foreign
Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola
re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in
Agra. An agreement with the Parle Group gave the Company instant ownership of the top softdrink brands of the nation. With access to 53 of Parles plants and a well set bottling network,
an excellent base for rapid introduction of the Companys International brands was formed. The
Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which
were floated by Parle, as these products had achieved a strong consumer base and formed a
strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these
products became a part of range of products of the Coca-Cola Company.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into
India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola
Company. However, this was based on numerous commitments and stipulations which the
Company agreed to implement in due course. One such major commitment was that, the
Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident
shareholders by June 2002.
Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations,
27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations
(FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range
of products for the company. It also has a supporting distribution network consisting of 700,000
retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian
market are made locally, with help of technology and skills within the Company. The complexity
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of the Indian market is reflected in the distribution fleet which includes different modes of
distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles and pushcarts.
Think local, act local, is the mantra that Coca-Cola follows, with punch lines like Life ho to
aisi for Urban India and Thanda Matlab Coca-Cola for Rural India. This resulted in a 37%
growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003,
the per capita consumption of cold drinks doubled due to the launch of the new packaging of
200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This
new market accounted for over 80% of Indias new Coca-Cola drinkers. At Coca-Cola, they have
a long standing belief that everyone who touches their business should benefit, thereby
inducing them to uphold these values, enabling the Company to achieve success, recognition
and loyalty worldwide.
2.1:VALUES, MISSION AND VISION OF (HCCBPL)
VALUES:Coca-Cola is guided by shared values that both the employees as individuals and the Company
will live by; the values being:
LEADERSHIP: The courage to shape a better future
PASSION: Committed in heart and mind
INTEGRITY: Be real
ACCOUNTABILITY:If it is to be, its up to me
COLLABORATION: Leverage collective genius
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INNOVATION: Seek, imagine, create, delight
QUALITY: What we do, we do well
MISSION To Refresh the World... In body, mind, and spirit
To Inspire Moments of Optimism... Through our brands and our actions
To Create Value and Make a Difference... Everywhere we engage.
VISION FOR SUSTAINABLE GROWTH PROFIT: Maximizing return to shareowners while being mindful of our overall
responsibilities.
PEOPLE: Being a great place to work where people are inspired to be the best they canbe.
PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate andsatisfy peoples Desires and needs.
PARTNERS: Nurturing a winning network of partners and building mutual loyalty.
PLANET: Being a responsible global citizen that makes a difference.
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2.2: PRODUCTS
The Coca-Cola Company offers a wide range of products to the customers including beverages,
fruit juices and bottled mineral water. The Company is always looking to innovate and come up
with, either complete new products or new ways to bottle or pack the existing drinks. The Coca-
Cola Company has a wide range of products out of which the following products are marketed
by HCCBPL:
In the CARBONATED SOFT DRINKS (CSD):
In the Fanta section: Fanta apple Fanta grape
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In the Juice section:
In Minute Maid section: Puply Orange Mango Grape Mixed fruit Linbu fresh
In Schweppes section: Soda Water TONIC Water and GINGER Ale
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In KINLEY section:
In Energy drink section:
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2.3: PACKAGING DETAILS
Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 mlreturnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles
Diet Coke: 330 ml can and 600 ml PET bottle
Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 mlfree PET bottles and the newly introduced 200 ml Tetra Pack
Minute Maid: 400 ml and 1 litre PET bottles
Schweppes Soda Water: 300 ml returnable glass bottles
Schweppes Ginger Ale: 330 ml can
Schweppes Tonic Water: 330 ml can, 300ml returnable glass bottles
Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PETbottles.
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CHAPTER 3: ORGANIZATION STRUCTURE OF COCA-COLA
_______________________________________________
ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA
Chief ExecutiveOfficer
Vice PresidentSupply Chain
Chief FinanceOfficer
Human ResourceDirector
Vice President BSG
Regional VicePresident (North)
Regional VicePresident (Central)
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3.1: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN
HCCBPL:
AGM/AOD
lant
nagerRoute to
MarketHuman
Resource
Manager FinanceManager GeneralSales
Manager
Area Sales
Manager
Sales
Executive
Market
Developer
Distributors
And
Salesmen
Channel
Manager
Marketing
Key
Accounts
Area
Capability
Manager
Sales
Trainers
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CHAPTER 4: Divisions within COCA-COLA
There are 2 main divisions within coca-cola they are
MainlineAlternative beverages
Under Mainline coca-cola has Maaza Kinley Water Kinley soda and All returnable glass bottle (RGB)
Such asCoke, Fanta, Maaza, Thums up, Limca, Sprite etc
And even pet bottles such asCoke, Diet coke Fanta, Maaza, Thums up, Limca, Sprite etc
Under alternative beverages coca-cola has Minute Maid juice All Flavors of Fanta All cans of the products such as
Coke, Diet coke Fanta, Maaza, Thums up, Limca, Sprite etc All products of Schweppes such as
Tonic water, Soda, Ginger Ale
Burn energy drink
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CHAPTER 5: Nature of business within alternative beverages
Under alternative beverages there are two main divisions they are:
Key accountsGeneral trade
Under Key Accounts there are Schools and colleges Institutions Business tech parks Canteens MRP liquor shops Clubs Pubs Dance bars Discotheque Movie theaters Restaurants Coffee shops etc
Under General Trade there are Bakeries Kirana stores Grocery stores Super markets Small kiosks Bars etc
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CHAPTER 6: Distribution model followed in coca-cola
DISTRIBUTION NETWORK
HCCBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution channels
are constructed in such a way that the demand of customers is fulfilled at the right place and
the right time when it is needed by them.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse ---
Retail Stock --- Retail Shelf --- Consumer
The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily
basis. A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.
DISTRIBUTION ROUTES
The various routes formulated by HCCBPL for distribution of products are as follows:
Key Accounts: The customers in this category collectively contribute a large chunk ofthe total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to
these customers on credit, payments being made by them after a certain period of
time i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
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Future Consumption: This route consists of outlets of Coca-Cola products, whereina considerable amount of stock is kept in order to use for future consumption. The
stock does not exhaust within a day or two, instead as and when required stocks are
stacked up by them so as to avoid shortage or non-availability of the product.
Examples: Departmental stores, Super markets etc.
Immediate Consumption: The outlets in this route are those which require stockson a daily basis. The stocks of products in these outlets are not stored for future use
instead, are exhausted on the same day and might run a little into the next day i.e.
the products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.
General: Under this route, all the outlets that come in a particular area or an areaalong with its neighboring areas are catered to. The consumption period is not taken
into consideration in this particular route.
DISTRIBUTION SYSTEM
Direct distribution: In direct distribution, the bottling unit or the bottler partner hasdirect control over the activities of sales, delivery, and merchandising and local account
management at the store level.
Indirect distribution: In indirect distribution, an organization which is not part of theCoca-Cola system has control on one or more of the distribution elements (Sales,
delivery, merchandising and local account management)
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CHAPTER 7: Parameters which determine the health of a
Channel Partner
In order to determine the health of a channel partner below there is a swotanalysis about sai eshwari enterprises
Strengths
1. Customers typically rebel against price increases by switching to competingproducts, but if a company has pricing power, customers will continueusing Channel partners products and services.Channel partner has the
ability to charge customers higher prices
2. Channel partners get a profit margin of 4%3. If the products gets expiry the company will take the products in return and as
an exchange the company will provide the fresh stock to the channelpartners
4. Size advantages lower Channel partners risks. The largerChannelpartner gets, the more resources they have to pursue new markets and defend
themselves against rivals
5. Lower costs lead to higher profits for Channel partner. A low cost leader canundercut rivals on price
6. When given a choice, customers are loyal to Channel partner. Instead oftargeting all customers, Channel partner only needs to target new customersin order to grow their business
7.A strong brand name is a major strength ofChannel partner. Thishelps Channel partner to distribute their the products easily to their
targeted costumers because consumers place additional value in the brand
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Weaknesses
1.An inefficient work environment means that Channel partners goods andservices are not being utilized properly
2.A high debt burden increases the risk that Channel partner goes bankrupt ifthey make a poor business decision. Increasing risks can increase Channelpartners debt interest payments
3. Weak customer service hurts Channel partners reputation and causescustomers to flee to competitors, who are more respondent
4.A weak supply chain can delay the arrival of products to Channel partnerscustomers. Unnecessary delays can hurt Channel partner over the long run,because customers will cancel orders
5. There is a high staff turnover in distributors place
Opportunities
1. Leveraging the balance sheet allows Channel partner to quickly expand intoother markets and products
2. New services help Channel partnerto better meet their customers needs.These services can expand Channel partners business and diversify their
customer base
3. Emerging markets are fast growing regions of the world that enable Channelpartner to quickly expand
4. New markets allow Channel partner to expand their business and diversifytheir portfolio of products and services
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Threats
1. Mature markets are competitive. In order for Channel partner to grow in amature market, it has to increase market share, which is difficult and expensive
2. The availability of substitute products hurts Channel partners ability to raiseprices, because customers can easily switch to another product or service (for
Eg:- Del Monte products)
3. Intense completion can lower Channel partners profits, because competitorscan entice consumers away with superior products
4. Consumers can change their tastes very quickly. Channel partner depends onknowing which goods and services consumers want
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CHAPTER 8: Suggestive methods to increase the health of a
Channel Partner
The supply of the products must be improved because many customersface the problem of irregular supply
The credit paybackperiod must be increased from 1 month to 45 daysor their must be a change in policy ofcash on delivery
The channel partner has to concentrate more on the outlets which locatedin north Bangalore such as in Devanahalli andyelahanka
The channel partner has to concentrate in cracking new outletsTheir must be a proper time should be fixed for PSRin order to visit the
market because many of the PSRs are not regular in time
The salary of the PSRs must be increased then they would workproperly in the markets
The channel partners should not treat all the customers in a similarmanner, The customers should be divided into three groups such as
Golden customers: The customers who buy large N.O of stockEg: Mudhuloka, Drops, DPS etc
Silver customers: The customers who buy average N.O of stockEg: Volga wines, SLNS wines, wine yard, spritz and more etc
Bronze customers: The customers who buy limited N.O of stockEg: college canteens, small restaurants etc
The PSRs should daily report to the distributors place
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CHAPTER 8: CONCLUSION
The activity was a good experience in the area of Sales. It gave me a good amount of
exposure mainly because after being trained, I got an opportunity to carry out the
process with the help ofASM Team leader and PSRs. It helped me in developing a
considerable amount of convincing skills, because, it took a lot of it to convincing the
store managers to buy the products and even in collecting cheques and even more to
convince the customers to buy new products which they werent selling before. A good
understanding of the market was accomplished as I spoke to many people and that
group consisted of a variety of customers. This even helped in the polishing of
communication skills, a must-have to survive and make it big in the present world. It
even gave a good understanding of behavior of customers when placed in different
situations. It was a good opportunity to work on the skill of patience, as a large number
of customers were to be dealt with. It helped in developing the kind of relations one
needs to uphold in the corporate world and it helped in building up the right attitude.
As all the points in the above mentioned paragraph, are the must-have skills for anyone
in the field of Marketing and Sales, the training period was a good experience and a
good stepping stone into the real business world.