Basic Informations

BASIC INFORMATIONS Company Profile Name of the Organization: Hindustan Coca – Cola Beverages Private Limited Year of Establishment: October 1993 Form of Business: Private Limited Nature of Business: Leading Producer & marketer of soft drinks in India Address of Corporate Office: Coca – Cola India Enkay Towers, Udyog Vihar V, Gurgaon, Haryana – 122106. Tel.: (0124) 2234 8041/8571. Plant Address (Gujarat): Village: Goblej, Dist.: Kheda, Gujarat – 387440. Name of the President: Mr. Sanjiv Gupta Telephone: 02694 84386 / 87 / 77585 E – Mail: [email protected] Website: http://www.coca-colaindia.com

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History Birth of a Refreshing Idea John Styth Pemberton first introduced the refreshing taste of Coca – Cola in Atlanta, Georgia. It was of 1886 when the pharmacist concocted a caramel – colored syrup in a three – legged brass kettle in his backyard. He first “distributed” the new product by carrying Coca – Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca – Cola at the soda fountain. Whether by design or accident, carbonated water was proclaimed “Delicious & Refreshing”

Dr.

Pemberton’s

partner

&

bookkeeper, Frank M. Robinson suggested the name & panned “Coca – Cola” in the unique flowing script that is famous worldwide today. Mr. Robinson thought ‘the two C’s would look well in advertising. In 1886 sales of Coca – Cola averages nine drinks per day. The first, Dr. Pemberton sold 25 gallon of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the no. 1 soft drink brand ever since. By 1891, Atlanta entrepreneur Asa G.

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Candler had acquired complete ownership of Coca – Cola business. Within four years, his merchandising flair helped expand consumption for $ 25 million. Robert W. Woodruff became president of The Coca – Cola Company in 1923, & his more than six decades of leadership took the business to unrivalled height of commercial success, making Coca – Cola an institution the world over. Coca – Cola began as a fountain product, but candy merchant Joseph A. Biedenhurn of Mississippi was looking for a way to serve this refreshing beverage at picnics.

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Coca-Cola First Bottled Coca-Cola began as a fountain product, but candy merchant Joseph A. Biedenharn of Mississippi was looking for a way to serve this refreshing beverage at picnics. He began offering bottled Coca-Cola, using syrup shipped from Atlanta, during an especially busy summer in 1894. In 1899, large-scale bottling became possible when Asa Candler granted exclusive bottling rights to Joseph B. Whitehead and Benjamin F. Thomas of Chattanooga, Tennessee. The contract marked the beginning of

The

Coca-Cola

Company's

unique

independent bottling system that remains the foundation of Company soft drink operations. Back then, soda bottles were all very similar. And Coca-Cola had many imitators, which consumers would be unable to identify until they took a sip. The answer was to create a distinct bottle for Coca-Cola. As a result, the contour bottle for Coca-Cola with the shape now known around the world was developed in 1915 by the Root Glass Company.

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Coca – Cola in India After a 16-years absence, Coca-Cola returned to India in 1993. The Company's presence in India was cemented in November that year in a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Coca-Cola India has made significant investments to build and continually improve its business in India, including new production facilities, wastewater treatment plants, and distribution systems and marketing equipment. During the past decade, the Coca-Cola system has invested more than US$ 1 billion in India. Coca-Cola is one of the country's top international investors. In 2003, Coca-Cola India pledged to invest a further US$100 million in its operations. Coca-Cola business system directly employs approximately 6,000 local people in India. In India, we indirectly create employment for more than 125,000 people in related industries through our vast procurement, supply and distribution system.

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Coca – Cola India PARTNERS IN PROGRESS

Virtually all the goods and services required to produce and market Coca-Cola locally are made in India. The Coca-Cola system in India comprises 27 wholly-owned company-owned bottling operations and another 17 franchisee-owned bottling operations. A network of 29 contract-packers also manufactures a range of products for the Company.

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Coca – Cola India PARTNERS IN PROGRESS

Name of the Directors Douglas N. Draft is chairman, Board of Director & Chief Executive Officer. Carl Ware is Executive Vice President of Public affairs & Administration. Brian G. Dyson is Vice Chairman & Chief Operating officer. Steven S. Heyer is Executive Vice President & Chief Operating Officer, Coca – Cola Ventures. Stephen C. Jones is Senior Vice President & C.M.O. David L. Patrick is Executive Vice President of General Counsel. Mary E. Minnick is Executive Vice President & Chief Operating Officer in Asia. Alexander R. C. Allen is Executive Vice President & Chief Operating Officer in Europe, Eurasia & Middle East. Alexander B. Cumming Jr. is President of Africa Group. Gary P. Fayard is Senior Vice President & C.F.O. Sanjiv Gupta is a President of Coca – Cola India.

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Mission THE COCA – COLA COMPANY EXISTS TO BENEFITS & REFRESH EVERYONE IT TOUCHES, THIS IS OUR PROMISE

WE STRIVE TO DELIVER ON THIS PROMISE EVERYDAY CREATING STRONGER & MORE SUSTAINABLE FUTURE FOR OUR BUSINESS & FOR THE COMMUNITIES WE SERVE

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Quality Policy The Coca-Cola Company exists to benefit and refresh everyone it touches. For us, Quality is more than just something we taste or see or measure. It shows in our every action. We relentlessly strive to exceed the world's everchanging expectations because keeping our Quality promise in the marketplace is our highest business objective and our enduring obligation. More than a billion times every day, consumers choose our brand of refreshment because Coca-Cola is... The Symbol of Quality Customer and Consumer Satisfaction A Responsible Citizen of the World

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SWOT Analysis S. = Strengths
It is a company with an experience more than 100 years.
Coca – Cola is no 1 Soft Drink Company of the world.
The company has never look back because of its innovative ideas.
It has got a very good infrastructure which helps the process of production.
Its trademark is identified by almost 95% of world population.
Maintains its major focus on worldwide expansion of cola market. W. = Weaknesses
Relationship with bottling subsidiaries could create territorial & other loyal problems.
Large region bottlers may not have the adequate finance resources to continue expansion; this may decrease or spoil the relationship.

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O. = Opportunities
It has got golden opportunities of promoting its product trough out the nation.
Coca – Cola tries to grab every opportunity that comes their way.
World wide economy development & population growth to sustain sales & profit.
Strong brands name of the company.
Its logo is identified by almost about 95% of the world population. T. = Threats
The main threat which not only the Coca – Cola, but also the Soft drink Industry.
It has captured believe that the next turn will be that of India.
The biggest threat to coke is its competitor Pepsi.
It has another threat to increase its advertisement budget.

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Coca – Cola India PARTNERS IN PROGRESS

ORGANIZTIONAL ASPECTS Organizational Structure

Board of Directors Managing Director Executive Director Vice President Senior General Manager General Manager Head of the Department Supervisors Workers

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Departments of Organization There are so many departments of this company. There are many sub departments of the department. The some major departments are described under: PRODUCTION DEPARTMENT This is the department, which looks after the whole production process, there are also some sub divisions. 1. Water Treatment Department: In this department water is treated to make is pure & safe water, they use RO Plant, UV rays, Chlorine etc. to make it pure. 2. Flavour Department: This is the department, which looks after the taste & proper amount of flavour added into it. This is the reason why the taste of Coca – Cola is same an over the world. 3. Bottling Department: In this department all the bottles are manually checked so that no damaged bottles are filled. Bottles are first cleaned with automatic machines & then filled with a machine that as capacity to fill 600 bottles per min.

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SALES DEPARTMENT This department looks after the sale of the production, the Coca – Cola has an indirect distribution channel of supply, this department plays a major role. There are more than 300,000 retail outlets across the country & to keep watch on this outlet is duty of sales department, so that this outlet never cheats the consumer. FINANCIAL DEPARTMENT This department looks after all financial needs of the company’s any department. To expand the business or to yet it divers the company should look that is this department has enough finance to do so or not. MARKETING DEPARTMENT This department looks after how the production of the company can be promoted in the market. This department thinks of schemes to be given along with the product. It can be in form of discount or sample of new product is given free or anything else. RESEARCH & DEVELOPMENT DEPARTMENT This department do research to improve the quality of product along it is great. This department does research or how the drink should be packed & sold in the market at the lowest cost. This department develops new & new taste soft drinks. 24

Coca – Cola India PARTNERS IN PROGRESS

PRODUCTION ASPECTS Various Products

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Coca – Cola India PARTNERS IN PROGRESS

Coca – Cola: In India, Coca-Cola was the leading softdrink 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 the remote and inaccessible parts of the nation. Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leaps and bounds.

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Thums Up: Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993 from Parle. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

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Limca: “Lime n’ lemoni Limca”. The drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavor soft drink in the country. The sharp fizz and lemoni 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 The Coca-Cola Company, is seen as one of the favorite drinks since 1940's. Fanta entered the Indian

market

in

the

year

1993.

Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst". Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. Fanta advertising over the time has had the highest association with fun and friends that has reflected through past TV commercials like Masti ka Apna Taste, Bajao Masti Ki Ghanti to the recent commercials Dil Khol Ke at the Airport. Rani Mukerjee, as the brand ambassador for Fanta is the perfect embodiment of brand character vis fun, vivacious and energetic.

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Sprite:

Worldwide 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 one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp refreshing taste encourages the today's youth to trust their instincts, influences them to be true to who they are and to obey their thirst. Sprite advertising for has always been memorable with very high recall value, specially amongst the youth. With popular TV commercials like Lisa Ray, Aish, Market Research and it's 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 became recognizable around the country.

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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 Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango,Maaza Mango" and "Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers

the

real

experience

of

fruit.

The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"

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Diet Coke: “Looking good and tasting great!” Diet Coke was born in 1982 and quickly became the No. 1 sugar-free drink in diet-conscious America. Known as Diet Coke in the U.S., Canada, Australia and Great Britain, and as Coca-Cola light in other countries, it's now the No. 3 soft drink in the world. It's the drink for people who want no calories, but plenty of taste. Ad campaigns around the world for Diet Coke share a playful, sophisticated and fun-loving attitude.

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Sunfill: Sunfill 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). Sunfill is also present in other countries, either in the form of a 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. Keeping in mind the affordability factor and the competition, Sunfill is available in three variants- Sunfill Regular, Sunfill Anand and Sunfill Tarang. Sunfill is great tasting, convenient and economical. Sunfill Regular priced at Rs. 2.50 per serve gives the consumer a world class product, which not only is very convenient, but also has a very attractive price. The product is available in single serve (23gms) & multi serve (200gms) and in 4 flavours- Orange, Lemon, Mango and Pineapple. Sunfill Anand was launched with the strategy cater to SEC C, D, E and Rural India. It is a non-sugared concentrate which provides one serving at 50 paise only. Anand has also been launched in a multi-serve pack which provides 22 glasses only at Rs. 10.

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Coca – Cola India PARTNERS IN PROGRESS

Sunfill Tarang is targeted at housewives in the high-end grocery segment keeping in mind the age-old Indian custom of making squashes at home. It is a non-sugared concentrate and is available in a multi-serve pack

which

makes

18

glasses

at

Rs.

15.

The advertising campaign emanates from the winning product and brand concept and is based on extensive consumer research. Sunfill is bounty in the hands of the housewife. It is refreshing, economical and convenient.

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Coca – Cola India PARTNERS IN PROGRESS

Kinley Water: Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself.

The importance of water can never be

understated. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to the sub-continent. Kinley

water

understands

the

importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the CocaCola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced. Because we believe that right to pure, safe drinking water is fundamental. A universal need, that cannot be left to chance. Kinley water - Boond Boond Mein Vishvaas! 35

Coca – Cola India PARTNERS IN PROGRESS

Georgia: In the company's journey towards the vision 'leading the beverage revolution in India', now even Garam matlab Coca-Cola…. A hot new launch from Coca-Cola India.

Georgia, quality tea &

coffee served from state of the art vending machines is positioned to tap into the nation’s biggest beverage category. Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in a range of 7 sizzling flavors, adrak, elaichi, masala and plain tea cappuccino, mochaccino and regular coffee. Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims to become the consumers preferred choice of hot beverage when he is on the go, the brand is well on course to achieving its vision. While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at McDonalds outlets across the country Georgia Gold has driven coffee sales through the roof. 36

Coca – Cola India PARTNERS IN PROGRESS

The success of hot beverages from Georgia Gold has resulted in extension into the cold category, with the introduction of Ice Tea and Cold Coffee.

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Coca – Cola India PARTNERS IN PROGRESS

Georgia Gold: In the company's journey towards the vision 'leading the beverage revolution in India', now even Garam matlab Coca-Cola…. A hot new launch from Coca-Cola India. Georgia, quality tea and coffee

served from

state of the art vending machines is positioned to tap into the nations biggest beverage category. Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in a range of 7 sizzling flavours, adrak, elaichi, masala and plain tea cappuccino, mochaccino and regular coffee. Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims to become the consumers preferred choice of hot beverage when he is on the go and the with 23 million cups so far, the brand is well on course to achieving its vision. While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the connoisseur. Made from freshly 38

Coca – Cola India PARTNERS IN PROGRESS

roasted and ground coffee beans, Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at McDonald’s outlets across the country Georgia Gold has driven coffee sales through the roof. The success of hot beverages from Georgia Gold has resulted in extension into the cold category, with the introduction of Ice Tea and Cold Coffee.

39

Coca – Cola India PARTNERS IN PROGRESS

Vanilla Coke: Vanilla Coke was launched in 2002 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 2004. The Thanda Matlab Coca-Cola campaign which was launched in 2002 had made Coca-Cola India’s favourite soft drink and this helped launch Vanilla Coke as ‘Ice-Creamy Thanda’, thereby making the new brand something familiar and comfortable to the consumer. Vanilla Coke was launched with a high profile TVC featuring teen heartthrob Vivek Oberoi in a remarkably new and different retro 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. Other than the TVC, radio & outdoor, the 360 degrees campaign includes a complete internet led brand experience that you can catch on www.myenjoyzone.com/vanillacoke and outdoor activation.

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Plant Layout THE GOBLEJ PLANT ∗ Commissioned in March 1998. ∗ Situated at the peaceful environs of Goblej just 30 km away from Ahmedabad City. ∗ Have two RGB lines & One Hot fill Line. ∗ Capable of Producing 55000 cases/day. ∗ The World’s favorite soft drink is Ahmedabad’s favorite too, evident from the phenomenal growth rate that Coca – Cola has achieved since its re – introduction in India. In Goblej, government facilities are very good; there are lots of non – skilled people here at Goblej. Coca – Cola generated lots of employment in Goblej. The staff of Goblej plant coming from allover Gujarat. The struggling time for the pant is Rainy Season. In rainy season everything will go down, production to marketing. The profitable time is summer. In summer consumption goes up because here at Gujarat, the temperature is very hot at the time of summer. That’s why in summer production should be on full speed.

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Coca – Cola India PARTNERS IN PROGRESS

Technology At The Coca-Cola Company, through our globally accepted and validated manufacturing processes and Quality Management Systems, they ensure that their manufacturing facilities are equipped to provide the consumer with the highest possible quality beverage each time. Let us now take you through the processes and Quality Assurance Programs followed by our world-class manufacturing facilities in India. Even before the plant is constructed, the site is selected based on the availability of source water meeting the portability quality standards. At all their carbonated and non-carbonated soft drink manufacturing locations, the source water is tested for all requirements of potable drinking water. The analysis is always conducted by independent third party accredited laboratories. The source water is then properly protected and re-tested periodically to ensure conformance to potability standards. The water is then drawn through sealed pipelines into the storage tanks in secured water treatment areas of the manufacturing plant. 1. The first step in the manufacturing of soft drinks is the disinfections of water using the globally approved procedure of chlorination. This treatment ensures the destruction of microorganisms including pathogens and oxidation of heavy metal ions and organic impurities. 42

Coca – Cola India PARTNERS IN PROGRESS

2. The second step is the filtration at the molecular level, which is achieved either by coagulation/flocculation or reverse osmosis. Contaminants commonly removed by this process include: -Dirt,

clay

and

any

other

suspended

matter

in

the

water.

-Microbial matter (including bacteria, yeast, moulds, virus, protozoa). -Heavy metals and compounds which may cause an off-taste. When coagulation/flocculation is used, colloidal materials and suspended particles are removed by settling plus enhanced filtration through multi-media. If needed, alkalinity reduction may also be achieved by lime softening or ion exchange filters. 3. The third step to stop potential contaminants is water purification using granular activated carbon filters. The granular activated carbon, with its large and porous surface area, ensures effective removal of trace levels of organic compounds (including pesticides and herbicides), colour, off-taste and odour-causing compounds using the principle of absorption.

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Coca – Cola India PARTNERS IN PROGRESS

4. The last step is polishing filtration, which is passing water through high efficiency 5-micron filters to ensure every drop of treated water is free from any activated carbon fines and is safe for use in beverages. Similar to the stringent norms used for water, we buy high-grade sugar from authorized sugar mills in India and this is treated with a globally acclaimed carbon treatment which removes any impurities and is then used for the preparation of purified sugar syrup. This sugar syrup is then blended with the soft drink concentrate. Carbon-dioxide from authorized suppliers meeting international purity standards is procured, which goes through stringent quality control checks before being used in the beverage process. The three ingredients of syrup, treated water and carbon-dioxide are blended as per The CocaCola Company's specifications. The glass bottles returned from the market are thoroughly cleaned and sanitized with specially formulated cleaning agents at high temperature that use sophisticated state-of-the-art Bottle Washers or Bottle Rinsers (in case of PET). These bottles are then transported to the filler using a fully automated conveyor system after a thorough visual 44

Coca – Cola India PARTNERS IN PROGRESS

inspection. The beverage is then filled into glass containers or virgin food grade PET bottles using a high-speed automated filling machine. The entire filling operation is fully automated and untouched by human hands. The bottles are finally capped/crowned, date coded and packed into crates/cartons to make them available to our consumers. The complete manufacturing process has a well defined and structured Quality Control and Assurance Program. All the manufacturing facilities employ qualified, experienced and trained professionals for manufacturing and testing of our products. All the bottling facilities follow the Good Manufacturing Practices requirements as applicable to the food industry. All manufacturing equipments fulfills the stringent requirements of GMP and sanitary design. The entire quality management system of each plant is documented, managed and continually improved through a world-wide accepted system of TCCQS (The Coca-Cola Quality System). The Company also has a strong internal audit system to monitor compliance to international and local standards. The manufacturing facilities also get audited by accredited external audit agencies against quality management standards. This internal checks and balances system 45

Coca – Cola India PARTNERS IN PROGRESS

works virtually in every aspect of our business and gives us the confidence to reassure our promise to consumers every day. At The Coca-Cola Company, they are committed to delivering high quality products to our customers and consumers throughout the globe. Each and every time.

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Coca – Cola India PARTNERS IN PROGRESS

Basic Production Process: The secret ingredient People love to speculate about the secret ingredient in Coca-Cola. Some say it could be ferreted out by simple analytical chemistry. Others are sure they taste a distinctive flavour base. But most are simply delighted that it makes Coca-Cola, the world’s premier soft drink, taste so consistently delicious. What’s our secret? Well, one secret is locked safely away in a secured vault. But another is just an arm’s length away. It’s the consistent quality of CocaCola. Wherever we do business, the Coca-Cola system adheres not only to local and national laws for food processing and labeling, but also to our own strict standards for exceptional quality. Everything we do, from the selection of ingredients to the delivery of our finished products, reflects our commitment to offering you the highest quality products. Let’s take a closer look at that commitment.

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Coca – Cola India PARTNERS IN PROGRESS

Concentrate and syrup manufacturing Most of our flavours are produced as concentrates, which are rigorously analyzed to ensure that they meet quality specifications. Each concentrate lot is coded and packaged, then shipped on for the next step the addition of sweetener and water to the concentrates to produce syrups for our products. The quality standards are very high. Mixing tanks must be of a specified grade of stainless steel. The entire syrup manufacturing system must employ hot sanitation. Precise control over water and sweetener components must be demonstrated. And, quality control professionals must oversee each step of the process. Our syrups start with fresh water, treated by using a multiple barrier filtration process to ensure its quality. In addition to the water and concentrate, sweeteners are added to produce syrup for most products. Throughout the manufacturing process, we take special care to ensure that every step - from the selection of ingredients to the calibration of equipment - adheres to our own strict requirements. The final step is to verify that our efforts have been successful by testing the syrups for taste and adherence to their formulas.

48

Coca – Cola India PARTNERS IN PROGRESS

The Process The magic of turning syrup into a finished beverage is the role of bottlers and canners. They bring together the essential ingredients - syrup, water and carbon dioxide - and transform them into the essence of refreshment. To do this, many producers now use the latest in computer technology and statistical process control. It’s a modern way to achieve our one traditional goal - consistent quality. Because they know that quality cannot be "tested in" to a product, they work tirelessly to ensure that they make it right the first time. They clearly define the process and control the inputs and steps in the process so that we can predict the quality of what we produce. Then, they test our work as a confirmation of our tightly controlled process. For instance, syrup-to-water ratios (mixtures) are accurately established at production start-up and are monitored frequently during the production run. Some plants use "in-line" electronic monitors, which continuously test the ratios and the carbonation of the beverage. No matter what sophisticated techniques are utilized, frequent taste-testing confirms that the blending process has produced exactly the right flavour ... the flavour you expect every time you drink one of our products. Adding pure carbon dioxide to the blend, 49

Coca – Cola India PARTNERS IN PROGRESS

in just the right proportion, puts the "sparkle" in soft drinks. To ensure we have it right, technicians periodically check production runs. In addition to consistent syrup and beverage quality, packaging must also pass rigorous standards. We not only work with our packaging suppliers to ensure quality in their production, but also employ our own testing methods. All packages must be free from defects. Cans are regularly "torn down" to check the quality of liners and seams. Bottles, whether glass or plastic, must meet standards for finish and uniformity. Once the package has been inspected and rinsed, it passes to the filler. The filler injects

a

precise

amount

of

product.

Immediately, a can end, metal crown or plastic closure seals the package. Each closure application method must pass regular testing. Metal crowns for glass bottles must be properly crimped onto the bottle lip. Plastic closures are tested for proper alignment, threading and torque (how hard you have to twist to get the closure off the bottle). Can ends are inspected for smooth, uniform application without gaps or leaks. Checking fill heights or net contents of our products helps to ensure that each package contains the proper volume. Can fill levels are continuously checked by an electronic device, which rejects any can not 50

Coca – Cola India PARTNERS IN PROGRESS

properly filled. Bottle fill heights are measured gravimetrically, or by weight. Labeling and graphics for all packages must meet clearly defined standards. Every production lot is coded by date and producing facility. Trained route sales people use this code extensively to provide the freshest, best-tasting product possible. It’s our primary tool for maintaining high quality standards throughout the distribution cycle, right to you - our consumer. At The Coca-Cola Company, quality is more than just something they taste, or see, or measure or manage. Quality shows itself in their every action; it encompasses everything they do. From processing to packaging to pouring, anything less than 100 percent quality is unacceptable. Their consumers throughout the world deserve the highest quality beverages we can produce. Every time.

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Coca – Cola India PARTNERS IN PROGRESS

Pollution Policy Coca-Cola India is in the business of beverages that refresh people. They will carry out their operations in ways that Protect, Preserve and Enhance the Environment they work in. their activities are guided by Coca-Cola eKOsystem, which provides a framework to transform this principle in actions. Towards this objective, it shall endeavor to: 1. Establish, maintain and operate facilities to comply with all applicable Environmental Safety and Health laws, Statutes and Consents. 2. Formulating sound environmental objectives and targets and integrate a continuous process review in all essential elements of corporate management. 3. Conservation of natural resources specifically in water, energy and Fuel by continually improving its usage and reducing wastage. 4. Working as catalyst to enhance collection of post consumer PET bottles through awareness programs and synergizing relevant agencies for getting better pricing to the consumer. 5. Seek Co-operation with Public, Private and Governmental Organizations in identifying solutions to relevant environmental issues. 52

Coca – Cola India PARTNERS IN PROGRESS

6. Advertising initiatives are to be critically evaluated while advertising in Eco-sensitive areas. Do not put advertisement on Historical Monuments, Religious, Political Buildings & Structures and other specially protected and sensitive areas. 7. Using

cooling

equipment

with

environmentally

friendly

technologies. 8. Managing fleet operations in a manner to minimize environmental impacts by ensuring good maintenance, improving & tracking fuel efficiency and effectively managing wastes. 9. Ensuring Procurement policies that consider the environmental impact of packaging materials and all direct and indirect process aids used within the operation. 10. Ensuring all operations implement eKO Management System and requirements under ISO 14001 before December 2004. This pollution eKO System policy was issued by President of Coca – Cola India Mr. Sanjiv Gupta, on 21st September, 2003.

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PERSONNEL ASPECTS Broad Overview & Pyramidal Break up

B.O.D. M.D.

General Manager, Heads of Departments, Assistants,

Supervisors, Technical Persons, Examiners,

Workers – Workers – Workers – Workers

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Recruitment Look beyond the unified team of Coca-Cola and you'll see the reason why we work so well together. Commitment, tempered by passion for the brand and the company, seasoned with a huge deal of fun is what life at Coke is all about. Collectively addressing every issue, Coke draws upon the many strengths of its people. Be it an external adversity or a challenging target internally, the invisible glue that makes us stick together has to be experienced firsthand. Building our strategies in touch with the market, right from the bottoms-up Annual Business Plan to the Engagement Program, every associate participates wholeheartedly. The annual engagement survey backed with business interventions, that gauge satisfaction, is a two-way tool to enable clarity of deliverables, channelize feedback and constantly improve ourselves. True to our values of People, Integrity, Quality, Image and Diversity, Coca-Cola surges forward to facilitate our commitment to our internal and external customers and the environment. Entrepreneur? CEO? If that's how you picture yourself some years from now then Coca-Cola is the perfect place to nuture your ambitions. Working at thrice the pace of an ordinary FMCG and reverse logistics make the beverage industry much more challenging.

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Selection Process With large areas of the Indian consumer market remaining untapped and riding on a double digit growth rate business is booming. With new products being introduced each year, new distribution & marketing strategies will be a challenge in the coming years…from the brand position to the distribution strategy- it could be all yours!

Campus Recruitments  Summer Trainees The Program

Coca-Cola is

Summer

designed

to

Trainee

facilitate

the

professional development of young talent and identify talented culture-fit employees for the company's Management Trainee program. The Summer Trainee program provides a learning of the vagaries and complexities of our business 'from the ground up'. With value-creating live projects, the intern begins appreciating the intricacies of his or her function and the impact that it’s has on business. The quality and content of projects provides an opportunity to complement your classroom learning with hand-on experience.

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We offer a traineeship in the following areas: * Sales * Marketing * Human Resources * Supply Chain

 Management Trainee The Coca-Cola Management Trainee Program is the first step towards developing business general managers. A structured assessment process at some of the country's premier business schools ensures that we hire the right talent to groom them into senior management positions A crossfunctional training program spread over six months across the country builds an appreciation of the complexity of the business as well as help you understand the its interlinkages. The learning experience is also spiced up with a few value-creating projects in the functional stints. Ground learnings are further consolidated with structured classroom sessions from the field managers themselves. A Community Development stint helps the leaders of tomorrow to relate to their environment and reaffirms our commitment to the community.

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The functional training stints include Sales, Marketing, Technical, Finance and Human Resources. We offer a traineeship in the following areas: * Sales * Marketing * Human Resources * Supply Chain * Logistics * Finance

 Graduate Engineer Trainees & Quality Operations Trainees Quality is one of the key values for Coca-Cola. To deliver on thier the promise of 100% Quality, they begin with a comprehensive training program for Quality executives. The Quality Operations Trainee Program has a mix of candidates from the country’ best Food Technology Institutes and internal high potential executives. In addition, the technical expertise across our bottling plants is honed during a year long program -the Graduate Engineer Trainee 58

Coca – Cola India PARTNERS IN PROGRESS

program, which boasts of a mix of graduates from premiere Engineering colleges and high potential internal candidates, both of whom are selected through a rigorous assessment process. Coaches and mentors at the locations supplement their education thereby enhancing the learning quotient of the program. During the training program the trainees are exposed to various cross-functional modules besides in-depth practical knowledge of their core function. Each trainee as specific learning objectives through a project in each plant that he is assigned during the course of his or her training. Each trainee has a stint at, at least three different plants working with the central technical/ quality team at Gurgaon, thus delivering and contributing to the Business even while learning.

 WOTES - Women Operations Trainees Program The WOTES program is based on a simple approach that reemphasizes Equal Opportunity and Meritocracy as a core value of the Company’s operations. The program not only aims to grow the business in sync with the Company’s diverse community and consumer base but also intends to engage the confident educated Indian women to be an integral part of the management. 59

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The WOTES or Women Operations Trainees Program is a focused Sales Training program for Women executives who will supplement the sales force in Frontline Sales. Spanning six-months the program consists of a three-month introduction to Sales the Coke way, followed by three months of on-the-job training at their prospective locations. The program imparts invaluable learning and an exposure to on-ground market conditions. At the end of the training, the WOTES will join the field force managing

the

sales

operations

across

the

country.

Lateral Recruitments The wisdom of experience that you bring to the table will complement the challenging nature of our assignments that form your ladder of progress...

All positions are those of an entrepreneur: Working with a business that constantly evolves newer ways of managing business & processes; we are learning-relearning old & new lessons every day. With a business plan

to grow double digit every year, it is your impatience to deliver results that will see you charged through the year. Working with the bottling operations would imply working as part of these business units and

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working very closely with all functions on a daily basis. The opportunities of working on cross functional projects and the high autonomy that our roles offer would set you thinking nothing less than an entrepreneur!!

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Training & Development Successful candidates placed on the jobs need training to perform their duties effectively. Workers must be trained to operate machines, reduce scrap & avoid accidents. It is only the workers who need training. Supervisors, managers & executives also need to be developed in order to enable them to grow & acquire maturity of thought & action. Training & Development constitute an ongoing process in any organization. This chapter is denoted to a detailed discussion on the nature & process of training & development in a typical industrial establishment.

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Compensation The objective of our compensation philosophy is simple- to attract, retain and motivate talented and qualified people to achieve business objectives. One of the guiding principles of the Compensation & Benefits policy of The Coca-Cola Company is that the compensation and benefit program is market competitive. The activity of determining 'The Target Market' and benchmarking our remuneration in relation to that market is based on this very principle.

Guiding principles for compensation  Market Competitive: The Company’s compensation practices are competitive with other employers who are comparable in size, scope and performance with Coca-Cola India.  Flexible: Compensation practices are tailored to address specific business needs as well as local business issues and local market differences.  Performance-linked: Compensation is linked to key business results and is driven by business, individual and team performance.  Equitable: The use of consistent standards in the administration of compensation practices throughout the Company results in equitable treatment for all employees.

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 Team-oriented: Compensation

practices

encourage

an

environment of teamwork and co-operation in which associates can effectively achieve business objectives.  Developmental: Compensation practices are structured to facilitate the development and application of individual talent through our Company.  Clearly communicated: The compensation program is clearly defined and communicated to all associates. But that's just the plain vanilla; the Coca-Cola Corporate Incentives Program is a globally administered variable pay program of The CocaCola Company to reward your individual performance and that of your team. Payout in this programme is based on: o Company Performance o Division Performance o Your Performance

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MARKETING ASPECTS Introduction Marketing set up and Marketing organization: Coca-Cola’s operation in India is divided into 5 regions and has a corporate entity by the name of Coca-Cola India. Marketing as an operation also is divided into 2 roles, Coca-Cola India marketing (corporate role) and Region marketing (local role). While the corporate marketing is involved in developing the brand personality and ensuring share of voice (thru above the line marketing spends), the region marketing is responsible for the on ground activation and ensuring share of throat (thru effective below the line spends). There is a marketing resource allocated to each unit under a region to carry out local activation and execution of brand plans, hence each unit is self sufficient. Basic marketing philosophy and marketing objectives: Marketing philosophy is to, be the most preferred brand in all the categories of beverage that we operate in & the marketing objective is to provide an integrated approach towards being the most preferred brand and top of mind in all categories. This is enabled thru our innovative advertising (in all mediums) and effective promotions on respective brands. This is also triggered thru launches of new packaging & flavours.

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Environmental influences on marketing strategies: Coca-Cola Company’s very high quality standards and international appeal provide all our brands a distinct credibility. Also it being an impulse product with affordability strategy, there is hardly a factor which influences the marketing strategy drastically. Coca-Cola India as a corporate citizen is involved in a lot of projects promoting the social and cultural fabric of India. It works very closely with the government and NGOs on the conservation of scarce resources in the country. Brief assessment of the competitive environment: PepsiCo India has a first mover advantage in some select parts of the country; however, nationally Coca-Cola India is leading with a market share of 60%. We lead in the concentrated soft drinks (CSD) and non-concentrated soft drinks (NCSD) business; however, in water business we are second to Bisleri nationally. On the brand front, Pepsi is the second most preferred cola brand in the country after Thums Up. In the clear lime category, our Sprite competes with their 7UP and Mountain Dew put together and still leads. Limca is the undisputed leader in the category. In the orange segment, both the companies share an even platform. Their distribution model is 60% franchise oriented and 40% owned.

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Importance of marketing research in your organization: Coca-Cola worldwide is heavily dependent on the market pulse for formulating its marketing strategy. There are various tools which the company engages to understand the behavior at the retail outlet level and the consumer level. The company tracks its performance monthly on these key parameters. Market segmentation – target marketing and positioning strategies: The Company has 6 offerings in the CSD business, 1 offering in the NCSD, 2 offerings in the powdered segment (both hot and cold). Each segment is targeted as per the international guidelines and moderating the same to suit the local expectations. Each brand has a specific positioning statement and a target group which also is tracked and monitored on the monthly basis. Product line – product mix and branding: The Company exists in 5 product lines, CSD, NCSD, Ready to drink Hot, Ready to drink Cold and Water. Each line has various products offering with specific branding and variant mix. For eg. Under Ready to drink Cold beverage, the company has a brand called Sunfill with variants as Anand and Tarang.

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Channels of distribution, Role of intermediaries and physical distribution: Largely it’s a 3 tier structure. From the manufacturing plant to the distributors and further to the retail outlets. Role of intermediaries is the key and hence the selection is the key. Physical distribution happens through both mechanized and non-mechanized vehicles from these distributor depots into the markets. Each distributor has a defined area of operation. We then work out the routing for the area and deploy resources to cater to the area. Sales promotion – Advertising – Advertising strategy: As mentioned in point no. 1, above the line advertising strategy and execution happens at the corporate level. While below the line sales promotions happens at the region/ unit level. Over all the advertising strategy is to provide differentiated messages with an adequate opportunity to see. To create innovative ads and ways to communicate the same. Sales promotions at the other end happen to create push for the brand or specific SKU.

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Sales pattern in domestic and international markets and indicative market shares: While the market shares have been mentioned in the point no. 4, the sales pattern is quite different locally as compared to the international trends. This is because of the channels behaving differently. Outside India, large format departmental stores or organized shopping is pretty prevalent hence it is garnering the shelf space. Locally, there are huge numbers of small outlets across channels hence penetration is the key. Pricing philosophy as a marketing mix variable: The soft drink consumption habit in the country still is at a nascent stage, hence, pricing is aggressive (affordability strategy). All other marketing mix variables get driven to deliver affordability strategy in the market place.

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Compensation & Market Share There are mainly 2 major players in this industry, Pepsi & Coca – Cola. Coca – Cola, which winded up in India operation during the introduction of the FERA region reentered in India after 16 years later in 1993. Coca – Cola acquired a major clank of soft drink market by buying out local brands like Thums – up, Limca & Gold Spot from Parle Beverages. Coca – Cola acquired Cadbury sweetener soft drink brand Crush, Canada Dry & Sport Cola in early 1990 & now recently in October 2000 is required distribution rights of these brands from IFB Agro Limited. Pepsi Started a couple of years before Coca – Cola in 1991, & then also right now it has lower market share. It has brought over Mumbai based Duties range of soft drink. Both Cola manufacturers Coca – Cola & Pepsi came up with their own market share & claims to have increased their share.

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Price Strategy Prices of Coca – Cola brands are as under: Price in Rs.

Brands Coca – Cola Thums up Sprite Fanta Maaza Canada Dry Kinley Soda Kinley Water Crush Limca Diet Coke Vanilla Coke

200 ml

300 ml 6 6 6 6 6 6 -

8 8 8 8 8 8 6 6 8 8 8

500 1 ltr. 1.5 2 ltr. 330 ml ltr. ml 18 30 35 42 15 18 30 35 42 15 18 30 35 42 15 18 30 35 42 15 15 15 10 30 42 12 30 35 42 15 35 42 15 18 30 35 42 15

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Distribution Channel A distribution channel transfers goods from producer to end users that are consumers. It overcomes the major factor such as time placed & possession gaps that separate goods & services from those who could use them. Members of the marketing channel perform many functions. To the extent that the manufacture performs these function, its cost rise & its price become high. At the same time, when some of these functions are shifted to inter medicals the producer’s cost & the prices may be lower. But the intermediacies must change more, to cover the cost of their work in adverting the work of channel. The various functions showed are the channel member who can perform them most effectual & affectively to provide satisfaction assessments of goods to target cost. Channel of distribution can also called tread channels. The problem of selecting most suitable channel of distribution for a product. Distribution channels may be classified as non – integrated & integrated distribution channel can be design in many ways according to availability of resources of it could be use follow:

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Model of Distribution Channel:

Manufacturer s Wholesaler s Semi Wholesalers Retailers Consumers

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Distribution Network The actual sale & distribution of that magic elixir is handled largely by a number of independent bottlers. These bottlers mix syrup it with carbonated water & distribute it to retailers in their area. The number of retailers who sell coke to the public almost exceeds counting. In India, the bottling subsidiary currently owns & operates 26 bottling plants & 60 distribution centers. In addition, it uses 20 contract packers to argument its production capacity & later to the increasing demand for its wide portfolio of beverages. To reach India’s 300 million soft drink consumers, the company distributes its product in over 70000 retail outlets, serviced via trucks. Converted three wheelers, tricycles & push carts.

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Advertising It’s now cool and hip to carry water and the ads are targeted at the young and the health – conscious those who care about their bodies. Advertising Objectives of the company: 1. To stimulate demand. 2. To strengthen offer, promotion mix elements, i.e. preselling of product. 3. To develop brand preference. 4. To cut cost as sales increase. 5. To lower price as it increases competition. 6. To be a competitive weapon. Advertising has played an important role in the success of our products since our first newspaper ad in 1886, which read, "Coca-Cola. Delicious! Refreshing! Exhilarating! Invigorating!" The Company uses advertising to trigger desire as often and in as many ways as possible. Throughout the years, slogans for Coca-Cola have always been memorable. Here are some highlights: 2000 – Coca-Cola Enjoy 1993 – Always Coca-Cola 1990 – Can't Beat the Real Thing 1989 – Can't Beat the Feeling 75

Coca – Cola India PARTNERS IN PROGRESS

1986 – Red, White and You 1982 – Coke Is It 1976 – Coke Adds Life 1971 – I'd like to buy the World a Coke 1969 – Its the Real Thing 1963 – Things Go Better with Coke 1959 – Be Really Refreshed 1944 – Global High Sign 1942 – Its the Real Thing 1936 – Its the Refreshing Thing to Do 1929 – The Pause That Refreshes Fine illustrations by noted artists, including Norman Rockwell and N. C. Wyeth, were the hallmark of early campaigns in premier magazines. Artist Haddon Sundblom's portraits for holiday ads, which began in the 1930s, helped mould the national image of a red-suited Santa Claus. Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high standard of quality for other products around the world. The Company recognizes that Coca-Cola belongs to the billions of consumers in every corner of the globe who have chosen it as their favorite soft drink. Our advertising reflects that special relationship

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between consumers and the simple moments of pleasure they have come to associate with Coca-Cola.

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TV Commercials COCA – COLA:

VANILLA COKE:

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THUMS UP:

FANTA:

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SPRITE:

MAAZA:

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SUNFILL:

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Pricing Philosophy Supply & demand tie into how these companies are performing. Pricing strategies & advertisements mostly affects this outcome. Coke overseas having a hard time because of the economic factors economy is down. So supply is large & they are forced to drum up business by dropping prices to get rid of the excess supply. Soft drinks are especially sensitive to supplies: they are produced with harvested crops. Orange juice for example, needs of oranges to be made. If the product is hit by bad harvest of oranges, then they supply of juice drop dramatically. This creates a demand & allows a producer to charge a lot more of it. This industry also takes place in price wants to win market share, lowering the price creates & supply needed. This is because the lower price, more beverages are sold & that means more demand is put on producers. This is odd because producers would prefer to sell their products at a high price & produce less when the retail price is lower. Business without competition would not offer the public a fair price, because monopolies would become dominate. It there were only one company, then they could set a price & people would not have a choice but to pay the price to but their products.

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Research & development is done at the head lab situated in plant, however for testing & recruiting local brands, a lab is opened in Hindustan Beverages. This lab maintains quality control for marketing of coke all over India.

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AMAZING FACTS If all the Coca-Cola ever produced were in 8 ounce bottles loaded on average-size route trucks passing a given point bumper-to-bumper at a speed of 65 miles per hour, it would take 5 years, 5 months and 2 days for all the trucks to pass. All the Coca-Cola ever produced were in traditional 8 ounce bottles and placed end-to-end, they would reach all the way to the moon and back 1,057 times over. If all the Coca-Cola ever produced were flowing over Niagara Falls and at its normal rate of 1.5 million Gallons per Second, the falls would flow for 38 hours and 46 minutes. If all the Coca-Cola ever produced were in traditional 8 ounce bottles and placed side-by-side and end-to-end, to form a four-lane highway, it would wrap around the Earth 82 times. If all the Coca-Cola ever produced were to erupt from "Old Faithful" at its normal rate of 15,000 Gallons per Hour, the Geyser would flow continually for 1,689 years.

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BIBLOGRAPHY 1 Books Kottler Philip Armstrong Gerry, “Principal of Marketing” Pearson Education, Tenth Edition

2 News Paper: 1. “coca cola awarded as best T.V. Commercial of year 2003-2004”, Times of India; 13th September 2004 2 “contact technology to rule”, Business World, 30th June 2004 pg no 15 to 28

3 Websites: 1. www.coca-colaindia.com 2. www.timesofindia.com

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CONCLUSION My overall impression about this company is an expressible the experience of industrial visit as a report of Second Year Bachelor of Business Administration is unforgettable experience to Coca - Cola is a successful industry and after this report I can conclude that it has very bright future. I am sure that successors are equally capable and innovative. Coca - Cola showed the world that if one cabling itself to the different combination and a utility is property that the success would achieve.

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