Final Report Of Iip On Coca Cola, Jaipur

PROJECT REPORT ON “Study on RED activation and Sales and Distribution of Coca-Cola Company in Jaipur region” At

HINDUSTAN COCA COLA BEVERAGES PVT LTD, JAIPUR (RAJ)

Submitted by Lalit Kothari 17-028 PGDM(TPS) Faculty Guide Prof. Dr. Madhavi Pandya

Siva Sivani Institute of Management Kompally, Secunderabad (2008-2010)

ACKNOWLEDGEMENT It gives me immense gratification to place on records my profound gratitude and sincere appreciation to each and every one of those who have helped me in this endeavor. I am ineffably indebted to my faculty guide Prof. Dr. Madhavi Pandya for her most valuable and regular guidance without which my project would not have been completed.

I extend my sincere thanks to Mr. Ashvini Gurung, Area Sales Manager, Hindustan Coca Cola Beverages Pvt Ltd for his valuable suggestions throughout the project.

I am also very much thankful to Mr. Manish Pandey, Sales Executive and Mr Chandershekar Kausik, Market Development Executive for his continuous motivation throughout this project, which really helped me in completing the project. I would also like to thank the entire staff of Hindustan Coca Cola Beverages Pvt Ltd,Jaipur for their cooperation and support. Any omission in this brief acknowledgement may not be taken as lack of gratitude.

Date:

(Signature)

Place:

Lalit Kothari

2

DECLARATION I, Lalit Kothari declare that this project titled ―Study on RED activation and Sales and Distribution of Coca Cola company in Jaipur region‖ has been completed by me at Hindustan Coca Cola Beverages Pvt Ltd,Jaipur (Raj) under the guidance of Prof. Dr. Madhavi Pandya, faculty, Marketing and Communication of Siva Sivani Institute of Management. I further declare that this is my original work as part of my academic course.

Date:

(Signature)

Place:

Lalit Kothari

3

CONTENTS AKNOWLEDGEMENT DECLARATION LIST OF TABLE CHAPTER 1: INTRODUCTION…………………………………………3 Introduction Objective of the study Scope of the study Significance of study Literature review RED concept CHAPTER 2: PROFILES………………………………………………..11 Industry profile Company profile CHAPTER 3: METHODOLOGY......................................................…...39 Route Visit for Sales and Marketing Method of Data Collection Primary Data Research Instrument Area of Sampling Sample Size Sampling Procedure 4

CHAPTER 4: ANALYSIS AND INTERPRETATION………………....43 Analysis of the data

CHAPTER 5: FINDINGS AND SUGGESTIONS…………………...….53 Findings Suggestions Conclusion Bibliography……………………………………………………….57

5

CHAPTER 1: INTRODUCTION Introduction Objective of the study Scope of the study Significance of study Literature review RED concept

INTRODUCTION Coca-Cola, the corporate nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. Coca-Cola is a cola (a type of carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries.It is produced by The Coca-Cola Company and is often referred to simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th century by John Pemberton, CocaCola was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. The manufacturing of the soft drinks began in the 1830’s. However, evolution of the soft drinks took place over a much longer period. The forerunners of soft drinks began more than 2,000 year ago when Hippocrates, the ―Father of

6

Medicine‖, first suspected that mineral waters could be beneficial to our well being. The soft drink industry was seasonal business in the early days, operating the primarily during the summer months. Gradually, demand grew for soft drink to be consumed in the home. Automatic vending machines began to appear in the 1920’s, one again changing the business of soft drinks. Vending machines and fountain dispensers led the way to the expansion of soft drink to industrial outlets. New technology helped soft drink bottlers meet going consumer demand by significantly increasing the product availability. The mushrooming demand for the product resulted in the growth of the soft drink industry. Inventors of the soft drinks spread their products across by opening a few strategically placed bottling facilities so franchise agreements. Responding to consumer demand, industry rolled out soft drinks in cans and introduces diet beverages to the market. Carriers were develop for convenience and ease in taking soft drinks from the store to the home. Development of new flavors, sale of cans products in vending machines and invention of polyethylene Terephthalate (PET) bottles followed. The soft drinks market in India till early 1990’s was in hands of domestic players like Campa , Thums Up, Limca etc but with opening up of the economy and coming of MNC players, Pepsi and Coke, the market has come totally under their control. Coca-Cola is the one of the biggest leading company in beverage sector in Jaipur and its main competitor is Pepsi. In Jaipur, Coca-Cola is producing several brands like Thumps up, Coca Cola, Sprite, Limca, Fanta and they have come with their new brand Minut Maid Pulpy Orange. Pulpy orange is the sixty year old brand in China but for India it is new. Apart from this company also produces products like Kinley soda & water and Bonaqua new water brand. Coca Cola distributes its products in Jaipur through a mix of different types of retailers and outlets categorizing them as Convenience, Grocery and E&D.

7

BRANDS OF

INDIA

8

Objectives of the study  To know effectiveness of the marketing strategy, sales promotion & distribution of Coca Cola in market.

 To know the market share of Coca-Cola.  To ensure the availability and visibility of product. .  To study the ―RED‖ activation on outlets of COCA-COLA Company. Scope of the study Scope of the study for Coca-cola by this study the company will come to know:-

 To find out problem of the counters and to find out their requirement for more sales.

 About market share of Company comparison to Pepsi.  Through this study company will know about the availability of its products in the Market.

 About RED activation score of outlets and what are the reasons for low RED score.

Significance of the study Significance of the study is following  The project directly deals with interaction of different kinds of people. So this project helps me to understand the corporate communication system.  This study is helpful to find out the sales trends of the Coke products and its effect on consumers value and satisfaction  This study provides an insight to the company that what kind of strategy must be adopted in order to increase the sales and satisfaction of consumers.

9

Literature Review Control of market share is the key issue in this study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how this is done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share. The creativity and effectiveness of each company's marketing strategy will ultimately determine the winner with respect to sales, profits, and customer loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi, but they are also thinking of ways in which to increase market share in other beverage categories. Although the goal of both companies is exactly the same, the two companies rely on somewhat different marketing strategies. Both companies have also relied on finding new markets, especially in foreign countries. In the foreign markets, Coke has been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter system that proved to fail. However, in certain countries that allow direct comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the marketing concept by offering products that meet consumer needs in order to gain market share. Both companies cannot just sell one product; if they do they will not succeed. They have to always be creating and updating their marketing plans and products. The companies must be willing to accommodate their ―target markets‖. Gaining market share occurs when a company stays one-step ahead of the competition by knowing what the consumer wants. Apart from this study previous studies were based on the distribution network and market share of some of these beverages companies. This study is based on to find out the market share of coca-cola in some of the areas of Kanpur city. Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% marketshare in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a United States embargo. Mecca Cola and Qibla Cola, in the Middle East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to CocaCola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. Coca-Cola Co. slightly increased its lead over rival Pepsi-Cola Co. in 2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke, according to U.S. soft drink industry rankings released last week. Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter and data service. The company captured a larger share of the market even though its Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates 44.3 percent of the U.S. soft drink market, but saw its market share drop between 1999 and 2001. With the latest gains, it's only 0.2 percentage points away from where it stood in 1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2 company commands 31.4 percent of the U.S. soft drink market.

10

In 1990, when Indian government opened the market to multinationals, Pepsi was the first to come in. Thums Up went up against the international giant for an intense onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending in the Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named MahaCola. This nickname gained popularity in smaller towns where people would ask for "Maha Cola" instead of Thums Up. The consumers were divided where some felt the Pepsi’s mild taste was rather bland. In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But Coca-Cola’s entry made things even more complicated and the fight became a three-way battle. That same year, in a move that baffled many, Parle sold out to Coke for a meager US$ 60 million (considering the market share it had). Some assumed Parle had lost the appetite for a fight against the two largest cola brands; others surmised that the international brands seemingly endless cash reserves psyched-out Parle. Either way, it was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in India, with Thums Up introduced alongside, albeit in minuscule numbers. Later CocaCola started pulling out the Thums Up brand which at that time still had more than 30% market share

11

Concept of RED: Right execution daily (RED) is the classification of outlets into Channel, Class, Income. Let’s know what are the Channel, Class, and Income respectively.

 CHANNEL - Type of outlet like E&D (EATING AND DRINKING), GROCERY, or CONVINIENCE? E&D 1- It includes Bakery/Sweet shops/QSR/Juice centers/Soft drink shops/Tea shops etc. E&D 2- It includes Sit down restaurants/Bars/Dhabas/Cafes etc. GROCERY- Outlets primarily engaged in retailing of food and various houses hold items. CONVENIENCE-Includes outlets which are small stores and shops, generally accessible locally.

 CLASS -Standard class of outlets like SILVER, GOLD or DIAMOND? SILVER- Those outlets which sells 200-499 crates per year. GOLD- Those outlets which sells 500-799 crates per year. DIAMOND- Those outlet which sells 800 & above crates per year.

 INCOME – Locality income group of outlets like HIGH, MEDIUM AND LOW. HIGH- Those outlets where high income customer comes. MEDIUM- Those outlets where medium income customer comes. LOW- Those outlets where low income customer comes.

12

CHAPTER 2: PROFILES

Industry profile Company profile

INDUSTRY PROFILE India’s one billion people, growing middle class, and low per capita consumption of soft drinks made it a highly contested prize in the global CSD market in the early twenty-first century. Ten percent of the country’s population lived in urban areas or large cities and drank ten bottles of soda per year while the vast remainder lived in rural areas, villages, and small towns where annual per capita consumption was less than four bottles. Coke and Pepsi dominated the market and together had a consolidated market share above 95%. While soft drinks were once considered products only for the affluent, by 2003 91% of sales were made to the lower, middle and upper middle classes. Soft drink sales in India grew 76% between 1998 and 2002, from 5,670 million bottles to over 10,000 million (See Exhibit 6) and were expected to grow at least 10% per year through 2012.28 In spite of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States29. With its large population and low consumption, the rural market represented a significant opportunity for penetration and a critical battleground for market dominance. In 2001, Coca-Cola recognized that to compete with traditional refreshments including lemon water, green coconut water, fruit juices, tea, and lassi, competitive pricing was essential. In response, Coke launched a smaller bottle priced at almost 50% of the traditional package.

Carbonated Soft Drinks At the core of the beverage industry is the carbonated soft-drink category. The dominant players in this area (Coca Cola, Pepsi, and Cadbury-Schweppes) own 13

virtually all of the North American market’s most widely distributed and bestknown brands. They are dominant in world markets as well. These companies’ products occupy large portions of any supermarket’s shelf space, often covering more territory than real food categories like dairy products, meat, or produce. As with many mature retail industries, the beverage giants have a problem – growth in the sales of their flagship carbonated products are at a near standstill in the key U.S. market, with 1% growth or less. After years of rapid growth, it seems that the average American can’t drink any more flavored, fizzy soda water. To remedy that, these three companies are rapidly expanding both globally as they enter and promote new markets for existing products and locally, as they add products from adjacent beverage categories in the supermarket, in categories that are still expanding. We'll talk about these areas in a later posting. The prototype of all marketing and branding struggles, the ―Cola Wars‖ keep expanding. The Pepsi and Coca Cola keep rolling out the big guns: dueling pop stars, and new branded products in the form of ―Vanilla Coke‖ and ―Pepsi Blue.‖ . They are fighting on the TV, in the fast-food restaurants, and in the supermarkets; they are also dueling in the schools. One of the biggest pushes of the last few years has been convincing school districts, universities, and other institutions to go all-Coke or all-Pepsi, in return for a (small) cut of the gross sales. Selling costly sugared water and building an increasing demand for it, even in Third World countries, involves marketing in its purest form, unsullied by any preexisting need or local tradition. Markets in Eastern Europe, China, India, and Mexico, among others, are expanding fast, and both Coke and Pepsi are finding local partners (bottlers) in these countries to keep extending their reach. And while the American market may be mature, there’s still an opportunity worldwide to replace hot beverages like coffee and tea that require some preparation with these cold, iconic. All this worldwide activity can’t disguise an unpleasant core reality for the vendors: U.S. carbonated soft drink sales increased only 0.5% in the year 2002. Although total sales for the industry was up slightly, per capita consumption was down for the third year in a row In other words, domestic soft drink growth is not keeping pace with population growth.

Overall soda market In fact, Coke and Pepsi have a third major rival on the bottled soft drink shelves, namely Cadbury-Schweppes. The big three carbonated beverage makers now exist

14

in a stable oligopoly those changes only by small increments and which controls over 90% of the market. Over the years, Cadbury-Schweppes (the result of a merger between a British candy company and a British beverage company) has improved its position by acquiring key brands in the US, namely Dr. Pepper and Seven-Up, along with A & W and Canada Dry. In past decades, the carbonated beverage section had been the beneficiary of an amazing record of growth, where consumption has more than doubled over the past 25 years. Americans consume twice as much soda as they did 25 years ago, up from 22 gallons per person per year to over 56. In 2000, these three companies had almost exactly the same share of the U.S. market they had in 1999, namely: Company Coca Cola PepsiCo

Percentage 44.1% 31.4%

Brands Coke, Sprite, Barq, Fanta, Mello Yello, etc. Pepsi, Mountain Dew, Mug, Slice, etc.

While individual flavors go up and down, the relative market share of the big three changes at a glacial rate. The next biggest North American soda company, the Canadian-based Cott Beverage Company, had only a little over 3% of the market and that company specialize in supplying private label soda to supermarkets and other chains. In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to battle against the big guys. This gave the company more shelf position and immediately gave the RC Cola brand, long a distant also-ran with weak marketing muscles, more sales and market presence. Pepsi gave itself a small boost because of the popularity of newly introduced Mountain Dew Code Red, a hypercaffeinated soda. Coke’s numbers declined slightly. The market share figures in 2001.

Company Percentage Coca Cola 43.7% PepsiCo 31.6% Cadbury/Schweppes 15.8%

15

It’s pretty indicative of this mature market that the only major move in market share comes through a takeover. Moreover, the takeover targets that are left are so small that the biggest remaining brand doesn’t make more than 1% difference in total volume.

New age beverages In the last part of our look at the beverage business, we noted that oligopolies Coca Cola, PepsiCo, and Cadbury Schweppes had "flooded" a mature market, so that there was minimal growth potential in the carbonated beverages category. So, how can these companies grow, something all oligopolies are compelled to do? First, by expanding internationally. Second, by acquiring or adding new products in other beverage areas, which show both faster growth and less welldefined competition. In fact, other beverage types have only in the last decade come into focus as separate, important categories. So the search for new beverage footholds has become the second front of the Cola Wars. There is a scramble for new territories in beverage shelf space, and Coke and Pepsi are investing heavily. These alternative beverages areas were established by startup or small cap companies, including Snapple and Arizona Iced Teas, Ocean Spray and Nantucket Nectars, SoBe and Calistoga. The emerging categories began to look like both a threat and an opportunity for the big three. In 2001, according to Beverage Age Magazine. The segments of alternative or "New Age" beverages ranked by order of sales, were: Bottled water in clear plastic containers Mildly flavored water (Clearly Canadian, Veryfine, Acqua Vie) Fruit juices and drinks (some shelf-stable, like Ocean Spray, Mott's, DelMonte; some refrigerated, like Nantucket Nectars, Tropicana) Sports and energy drinks (Gatorade. Powerade, SoBE Power, Red Bull, GUp) Iced tea (Snapple, Arizona, Lipton, Nestea) Premium soda (Thomas Kemper Soda, Jones Soda) Cold coffee drinks (Starbucks cappuccino drinks, PlanetJava, Arizona) Vegetable/fruit juice blends, (V8, Odwalla) Enhanced dairy drinks (Smooth Moos, Chocolate Moose Energy Shakes, drinkable yogurt) Soy-based and other non-dairy beverages (Odwalla, Health Source) Other nutrient-enhanced beverages, so called neutriceutical beverages (SoBe, Hansen, Naked Juice, Fresh Samantha)

16

The problem with this market, like most emerging categories in the grocery business, is an excess of vendors and products, making it hard for retailers to decide who to assign their precious shelf space to. This is accompanied with an even larger number of SKUs of different sizes and flavors, causing generally chaos in the market. That makes for a great opportunity for the oligopolists, who have entered into these markets in a big way. We'll talk about the water category later, but here are some of the other alternative brands now owned in the alternative market by the carbonated Big Three. (The notation (lic.) denoted a beverage licensed from another company.) Category

Coca Cola

Pepsico

CadburySchweppes

Notes

Lipton (lic. Unilever)

Snapple

Lipton #1, Nestea #2, Snapple #3

Sports drinks Powerade

Gatorade

Mistic

Gatorade #1, Powerade #2

Health drinks KMX

SoBe

Coffee Drinks

Planet Java

Starbucks (lic.)

Refrigerated Juices

Minute Maid, Odwalla, Fresh Samantha

Tropicana; Dole (lic.)

Nantucket Nectars

Dole (lic.)

Orangina; Mott's; Welch's (lic.); Clamato

Iced tea

Nestea (lic. Nestle)

Shelf-stable juices Milk-based drinks Soy-based drinks

Starbucks #1, Planet Java #3 Tropicana #1, Minute Maid #2

Yoo-hoo; Raging Cow Tropicana smoothies

Note that most of these products were bought or started in the last three years. The big three already have the salesmen, the vending machines, the bottlers, the money to advertise, and the international reach. With this power, they have managed to take over a second aisle in the supermarket, along with a solid section of the refrigerator case. And as we'll see, the biggest potential is in water.

17

Bottled Water The bottled water industry in North America is growing aggressively. It is the fastest growing segment in the beverage industry (around 30% annually, compared to 1% or so in carbonated beverages), and the cost of goods sold is almost negligible. Once confined to Perrier and Evian sippers at fancy restaurants or people with bad--tasting local tap water, there's been a tripling of US consumption since 1985. As a recent FORTUNE magazine article put it, The most brutal battle in the beverage industry is the one for dominance of bottled water. With the niche growing at a 30% annual clip, bottled water will likely catapult ahead of coffee and beer to become the second-best-selling beverage--just behind soft drinks--by 2005. (Currently bottled water's barely ahead of No. 5 milk). Another article in Beverage Marketing notes the concentration of the market as water gets to be a bigger deal. Super marketers have revolutionizing the industry. Since the costs of buying and holding shelf space is so expensive, the small, regional firms, which used to be major water suppliers, are being priced out. The only companies that can get their products on the shelves are the new water oligopolists, large national and multinational companies. Four companies now dominate the North American market for bottles water: Nestle, Danone, Coca Cola, and Pepsico. Like other areas of the beverage market, water, once the province of small, local spring bottlers and a few European importers, has now become an oligopoly. While Nestle (originally a Swiss chocolate company) and Danone (originally a French dairy firm) have been in the market for a while, Pepsi and Coke are Johnnies-come-lately to the market, Pepsi in 1995 and Coca Cola in 1999. But they have so much marketing savvy, power in the distribution and bottling area, and store presence, that they have made their two brands, Aquafina (Pepsi) and Dasani (Coke), the top two selling brands in the US market. That's in spite of the fact that, unlike most of the competitors, these are simply filtered and bottled local tap water. Yet bottles of the either of these essentially free liquids sell for almost the same a similar container of soda or iced tea. Not a bad business to be in! Both companies use their vast experience in associating drinks with lifestyle, sharpened during the cola wars. They are ramping up their ad budgets and getting significant growth in volume as they do so. And they have a big opportunity. According to estimates, one third of American households have never tried bottled water, and carrying around a bottle of water has become a status symbol for many younger Americans.

18

Nestle is in fact the overall market leader, with $2.5 billion overall in water sales. It sells a number of brands that are popular in various regions of the country, such as Poland Spring in the Northeast. Arrowhead and Calistoga in California, and so on. These are actual spring waters that have to be trucked to the bottler. Nestle also sells Perrier, San Pelligrino, and some other European imports.Danone is number four in volume, with its imported Evian, Volvic, and others, along with Naya and Sparkletts from the U.S. Of the big four, Danone is the one that is sinking, losing sales to the others. In fact, they just signed an agreement with Coca Cola to market and distribute several of its brands in the US, including Dannon and Sparkletts, and some economy brands. Evian and other European brands will not be affected. In 2002, these four companies had achieved over 60% of the water sales in the US, and that was rapidly expanding. Only two competitors have shares over 2%: Suntory Group (part of a Japanese conglomerate) and independent Crystal Geyser. Our guess is that minor brands will more and more be crowded off the shelf. (By the way, Cadbury-Schweppes has a limited water role at present.) Supermarket sales of cases of water are starting to show competition, as Nestle, Coke, and Pepsi are starting to compete on price as a Wall Street Journal report noted. Coke and Pepsi are trying to avoid a water version of the cola wars, in which they battled it out with price, cuts in the supermarket aisle. That's why they're concentrating some 60% to 70% of their sales in the lucrative business of selling single, cold bottles in convenience stores or vending machines. But the next step is differentiating waters by making them vitamin-enriched nutriceutucals. Pepsi, through its Gatorade subsidiary, now offers Propel, enhanced with vitamins and minerals. It is also selling something called Aquafina Essentials, which is flavored water (some sugar added), doubtless a healthy drink. Coke is selling Dasani Nutriwater, a similar gimmick. Even the water category, only recently discovered by these companies, is now spawn new categories, opening new fronts in the cola wars. Company

Select Brands

Nestle

Perrier, Poland Spring, Arrowhead, Deer Park, Zephyrhills, Ozarka, Ice Mountain, Calistoga, Vittel, San Pellegrino, Acqua Panna, Vittel

PepisCo

Aquafina

CocaCola

Dasani

Danone

Evian, Volvic, Dannon, Naya, Ferrarelle, Sparkletts, Pure American, Castle Rock

19

COMPANY PROFILE

Headquarters: One Coca-Cola Plaza Atlanta, GA 30313 Employees: 71,000 CEO: Neville Isdell Stock Symbol: KO Website: http://www.coca-cola.com/

Coca-Cola is the world's leading beverage company. The company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. The company makes and distributes sodas, waters, fruit juice, teas and coffees and energy drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries drink the company's beverages at a rate exceeding 1.5 billion servings each day. Major brands include Coke, Diet Coke, Sprite, Bacardi, A&W, Minute Maid, Dasani, Nestea, Powerade and Hi C. In 2007, revenues were $28.8 billion, a 20% increase from the previous year, and net income was $5.9 billion. Unit volume increased 6%. In 2007, the company said it will acquire Energy Brands, Inc., known as glacéau, and its full range of fast-growing, enhanced water brands, including Vitamin Water for $4.1 billion. Coca-Cola announced in September it is investing more than $60 million to build the world's largest plastic-bottle-to-bottle recycling plant and support recycling in the U.S. These investments are part of a comprehensive goal to recycle or reuse 100 percent of the Company's plastic bottles in the U.S.

20

PLANTS OF

INDIA

Beverage Bottling Plant of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. at Jaipur (Rajasthan, India) Beverage Bottling Plant of M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. at Ghaziabad, Goa, Bangalore and Vijayawada (India) Hindustan Coca-Cola Beverages Pvt. Ltd. at Vijayawada

MFG. PROCESS OF COCA-COLA PRODUCTS

INGREDIENT DELIVERY Sweetener Team of professionals, work on selecting, auditing, sampling, testing, approving and then authorizing the sugar suppliers and the list of such authorized suppliers with approved sugar lots and along with the certificate of analysis are sent across to all the bottling unit for procurement. Secret Formula Created in special concentrate plants, it's delivered, held and used under strict controls to maintain its integrity and security. Each unit of concentrate is especially identifiable to allow the "history" of each component to be researched at any stage of production, storage or use. CO2 Formula When delivered to the plant, carbon dioxide, or CO2, comes in cylinders for easy delivery and storage. But what is it? In essence, it's a colorless and odorless gas that provides the "fizz" for our beverages. But it's also a by-product of our breathing and used by plants and trees to produce oxygen.

21

Water Since water is a key component to all our beverages, its quality is critical. And, since public water quality varies around the world, each plant further treats the water it uses. This means that before water is added to any of our beverages; it's rigorously filtered and cleansed. We then continuously sample the water to ensure it meet our standards. Materials Ingredients are not the only things delivered to the plant. Other materials such as bottles, cans, labels and packaging are also delivered. Our plants in India use refillable bottles, CANS, PET etc. in the Production Process, when bottles and cans are delivered to the plant; they are carefully inspected to ensure that they meet our exacting standards. Once these have passed initial inspection, they move on to be washed and/or rinsed.

WASHING AND RINSING To ensure quality, each bottle is washed, sanitized and rinsed before being filled. While this sounds simple, the actual steps can differ by bottling plant. In India, our plants use refillable glass, cans or PET bottles. To ensure they meet our cleanliness standard, bottles are first hit with precise jets which remove any dirt or debris. They are then soaked in a high-temperature deep cleaning solution that removes any remaining dirt and sanitizes them. The bottles then move to the "hydro wash" where they are washed again with a deep cleaning pressure-spray.

MIXING AND BLENDING H2O and Sugar Mixing and blending begin with the steps of mixing pure water with refined sugar, which creates simple syrup. The syrup is then measured for the correct amount of sugar. Secret Formula Our secret formula is... still secret! That's right; the secret formula remains a mystery to the millions of people in nearly 200 countries that enjoys our refreshing beverages everyday. Even though we can't tell you the secret, you can be sure that "LIFE TASTES GOOD" with Coca-Cola.

22

H20 and Syrup With the syrup nearing its final state, we mix it with pure water, creating the finished uncorroborated beverage. However, the water and syrup must be mixed in right ratio. This is done by the beverage proportioning equipment. It accurately measures the correct ratio for each and sends this mixture to the carbonator. CO2 Adding Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverages. Carbon dioxide not only gives our beverages their effervescent zest, but it also adds to the distinctive and familiar taste everyone has come to expect from our beverages.

FILLING Once all the ingredients have been mixed and blended and the bottles have been cleaned and sanitized, we're ready to start filling. This is a surprisingly complex process requiring precision at each step. To begin with, bottles must be carefully timed as they move to the filler - synchronization is key. Once at the filler, bottles are either held securely in place by flexible grippers or precisely placed under filling valves by centering devices. Before the bottles can be filled, the inside of the bottles must be pressurized. This allows for the force of gravity itself to draw the beverage into the bottle - a process that ensures the smooth flow of liquid, with little to no foaming.

CAPPING Once filled, bottles are then capped. We use different caps for different bottles glass bottles are usually topped with a metal crown while "PET BOTTLES" are topped with a plastic screw-top. Each cap type then moves through different parts of the machine, which ensures each cap stays scratch free and is in the right position to be precisely placed on the bottle. As quality and freshness are key, we use a "no closure" detector during the capping process and a "go-no-go gauge" or "torque meter" after the bottles has been capped. The "no-closure" detector checks if a screw top or crowns has been placed on bottle. The process actually stops if the detector doesn't find a closure. The "go-no-go gauge" checks for the proper crown crimp and the "torque meter" checks to make sure the screw-top is good and tight. If the bottle cap isn't just right, the beverages can become flat or be affected in other ways. If this happens, the bottle is discarded.

23

LABELING Once the bottles have been filled and capped, they move on to be labeled. A special machine dispenses labels from large rollers, cuts them and place on the bottles. For special labels such as commemorative bottles for football championships, the labels are sent to the bottling plants for approval, and then used for packaging. Depending on the occasion, some of these special bottles will go only to the specific locations. For example, a national football championship bottle will be sent only to the home town or state of the championship team.

CODING The bottle is now ready to be coded. Each one of our beverages is marked with a special code that identifies specific information about it. The codes simply identify the date the beverages was bottled or canned. These codes identify the date, time, batch no. and the MRP. Product coding allows us to ensure that u receive our beverages at their flavorful best.

INSPECTION We inspect bottles at many points during the process. With refillable bottles, it happens they are first brought into the plant. They are also inspected after they are washed and again after they are filled. Inspectors look for external bottle imperfections and make sure each bottle has the right amount of beverages. Even after filling, each plant samples bottles for analysis in its lab to ensure quality is up to standards

PACKAGING once our filled beverages have passed final inspection, they are ready to be packaged for delivery. Generally, packing can refer to everything from the unique "BOTTLE" and "CAN" designs, to label designs, to cardboard boxes and containers, to plastic rings. Because the needs and tastes of our consumers are so diverse, the packaging varies depending on where the beverages are being sent.

24

WAREHOUSING & DELIVERY In order to make sure the freshest beverages possible get to you, each warehouse must efficiently manage the thousands of beverages cases produced each day. Beverage organization is key, though it's the bottle and can coding that allow for the necessary precision. From the warehouse, we load beverages onto our distinctive trucks. Night and day, our trucks are delivering our refreshing beverages to stores, soda fountains, and vending machines near you.

25

PRODUCT INTRODUCTION

Coca-Cola has a truly remarkable heritage. From a 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 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 favourite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative togetherwith improved distribution ensured that all brands in the portfolio grew leaps and bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan and Hrithik Roshan. Glass

PET 500 ml, 1.5 L, 200 ml, 300 ml, 500 2 L, 2.25 L, ml, 1000 ml 500 ml + 100 ml

26

Can

Fountain

330 ml

Various Sizes

Strong Cola Taste, Exciting Personality 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. 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. Glass

PET 500 ml, 1.5 L, 200 ml, 300 ml, 500 2 L, 2.25 L, ml, 1000 ml 500 ml + 100 ml

Can

Fountain

330 ml

Various Sizes

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 flavour soft drink in the country. The success formula. 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.

27

Glass

PET 500 ml, 1.5 L, 200 ml, 300 ml, 500 2 L, 2.25 L, ml, 1000 ml 500 ml + 100 ml

Can

Fountain

330 ml

Various Sizes

Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries. In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. With a strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. Its clear crisp refers hung taste encourages the today's youth to trust their instincts, influence them to be true to who they are and to obey their thirst.

Glass 200 ml, 300 ml,

PET 500 ml, 1.5 L, 2 L, 2.25 L, 500 ml + 100 ml

Can

Fountain

330 ml

Various Sizes

28

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.

Glass

PET 500 ml, 1.5 L, 200 ml, 300 2 L, 2.25 L, ml, 500 ml + 100 ml

Can

Fountain

330 ml

Various Sizes

29

Maaza was launched in 1976. ere 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" Maaza was launched in 1976. ere 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"

Glass Glass 200 ml, 200 250 ml, ml 250 ml

Tetrapak Tetrapak 125 ml, 125 200 ml, ml 200 ml

PET PET 1000 ml 1000 ml 30

Fountain Fountain Various Sizes Various Sizes

The importance of water can never be understated. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday rituals or as the monsoon which gives life to the sub-continent. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced.

Minute Maid - A 62 year success story The history of the Minute Maid brand goes as far back as 1945 when the Florida Foods Corporation developed orange juice powder. The company developed a process that eliminated 80 percent of the water in orange juice, forming a frozen concentrate that when reconstituted created orange juice. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (In a minute).

31

Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. Minute Maid- One of the world's largest juice and juice drink brands Over the years, through innovations and unmatched consumer experience provided in over 60 countries, Minute Maid brand has clearly become one of the world's largest juice and juice drink brands. The launch of Minute Maid Pulpy Orange in India (starting with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category.

Available in two PET pack sizes 400 ml and 1 liters and 1.25 liters.

Trademark Registration of Coca-Cola The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977; an honor awarded very few packages.

Mission “To refresh the world... In mind, body and spirit. To inspire moments of optimism… through our brands and our actions. To create value and make a difference… everywhere we engage.” With the mission to refresh this world the coca cola company gear up the company to reach its potential; mission is to create a growth strategy that bring good to the world by refreshing people every day and inspiring them with optimism through the brands and our actions

32

Vision More than a billion times a day, consumer chooses our brand of refreshment because coca cola is... “The Symbol of Quality Customers and Consumers Satisfaction A Responsible Citizen of the World” The company asks 150 of top leaders to re-imagine The Coca-Cola Company. This would result to lead company to a holistic vision that the company is working to accomplish over the next 10 years.

Brands A&W, Barq's, Caffeine Free Coca-Cola Classic, Caffeine Free Diet Coke,Cherry Coke, Citra, Coca-Cola C2, Coca-Cola Classic, Crush, Dasani, DietBarq's, Diet Cherry Coke,Diet Coke, Diet Mello Yello, Diet Sprite, Dr.Pepper, Fanta, Five Alive,Fresca,Fruitopia, Georgia Coffee, Hi-C, MelloYello, Minute Maid, Mr. Pibb, Nordic Mist, Odwalla, Powerade, Santiba,Simply Orange, Sprite, Surge, Tab , Pulpy orange.

Brands in India Coca Cola , Thumps-up, Sprite, Limca, Fanta , Fanta Apple,Kinley, Maaza and MMPO.

History of Coke The Early Days Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for mental and physical disorders. The formula changed hands three more times before Asa D. Candler added carbonation and by 2003, Coca-Cola was the world’s largest manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized beverage brands in its portfolio. With the bubbles making the difference, Coca-Cola was registered as a trademark in 1887 and by 1895, was being sold in every state and territory in the United States. In 1899, it franchised its bottling operations in the U.S., growing quickly to reach 370 franchisees by 1910.10 Headquartered in Atlanta with divisions and local operations in over 200 countries worldwide, Coca-Cola generated more than 70% of its income outside the United States by 2003. The Coca-Cola Company (NYSE: KO)is the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world, and one of the largest corporations in the United States. The company is best known 33

for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake CocaCola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories. The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500. Coca Cola Company is one of the United States based company founded in the year 1886. It is one of the world's leading manufacturer, marketer and distributor of cola type’s products. The industrial type of the company comes under the Beverages. The company's headquarter is situated at Atlanta. It has its worldwide operation in more than 200 countries of the MAAZA The company for the year 2002 was regarded as the company having highest Brand value. The brand value was measured at 69,637,000,000 in terms of $. Presently the company has more than 400 brands over the world. The company employs approximately 55,000 peoples over the world. The net income of the company as of the year ended on December 31, 2005 reached at $ 4,872 millions. Presently E. Neville Isdell is the Chairman, Board of Directors and the Chief Executive Officer of the Company.

Overview The Coca-Cola Company, incorporated in September 1919, is the manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Finished beverage products bearing its trademarks are sold in more than 200 countries. The Company markets nonalcoholic sparkling brands, which includes Diet Coke, Fanta and Sprite. Its business is nonalcoholic beverages, principally sparkling beverages, but also a variety of still beverages. The Company manufactures beverage concentrates and syrups, which it sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as finished beverages, which it sells primarily to distributors. The Company owns or 34

licenses more than 450 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. In addition, it has ownership interests in numerous beverage joint ventures, bottling and canning operations, although most of these operations are independently owned and managed. On June 7, 2007, the Company acquired Energy Brands Inc. On February 22, 2007, the Company acquired the remaining 65% interest in Coca-Cola Bottlers Philippines, Inc. During the year ended December 31, 2007, the Company acquired a 50% interest in Jugos del Valle and a 34% interest in Tokyo Coca-Cola Bottling Company. In 2007, it acquired glaceau, 18 German bottling and distribution operations, Fuze and Leao Junior. The Company sells the concentrates and syrups for bottled and canned beverages to authorized bottling and canning operations. In addition to concentrates and syrups for sparkling beverages and flavored still beverages, it also sells concentrates (in powder form) for purified water products, such as Dasani to authorized bottling operations. Its beverage products include Coca-Cola, CocaCola Classic, caffeine free Coca-Cola, caffeine free Coca-Cola Classic, Cherry Coke, Diet Coke (sold under the trademark Coca-Cola Light in many countries other than the United States), caffeine free Diet Coke, Diet Coke Sweetened with Splenda, Diet Coke with Lime, Diet Cherry Coke, Diet Coke Plus, Coca-Cola Zero (sold under the trademark Coke Zero in some countries), Fanta brand sparkling beverages, Sprite, Diet Sprite/Sprite Zero (sold under the trademark Sprite Light in many countries other than the United States), Pibb Xtra, Mello Yello, Tab, Fresca brand sparkling beverages, Barq’s, Powerade, Aquarius, Sokenbicha, Ciel, Bonaqa/Bonaqua, Dasani, Dasani brand flavored waters, Georgia brand ready-to-drink coffees (sold in Japan), Lift, Thums Up, Kinley, Eight O’Clock, Qoo, Vault, Full Throttle and other products developed for specific countries. In many countries (excluding the United States, among others), its Company’s beverage products also include Schweppes, Canada Dry, Dr Pepper and Crush. The Company produces, distributes and markets juice and juice-drink products, including Minute Maid juices and juice drinks, Simply juices and juice drinks, Odwalla nourishing health beverages, Five Alive refreshment beverages, Bacardi mixers concentrate (manufactured and marketed under license agreements from Bacardi & Company Limited) and Hi-C ready-to-serve juice drinks. The Company has a license to manufacture and sell concentrates for Seagram’s mixers, a line of sparkling drinks, in the United States and certain other countries. The Company has an exclusive master distribution agreement for Evian bottled water in the United States and Canada, and for Rockstar, an energy drink, in most

35

of the United States and in Canada. In the United States the Company markets Nestea and Enviga products under a sublicense agreement with Nestlé USA, Inc. Multon, a Russian juice business (Multon) operated as a joint venture with CocaCola Hellenic Bottling Company S.A., markets juice products under various trademarks, including Dobriy, Rich and Nico, in Russia, Ukraine and Belarus. Beverage Partners Worldwide (BPW), the Company’s joint venture with Nestle S.A. (Nestle), markets ready-to-drink tea products under various trademarks, including Yang Guang, Nagomi, Frestea, Ten Ren and Shi-Zen, in various markets worldwide, other than the United States and Japan. During 2007, concentrates and syrups for beverages bearing the trademark Coca-Cola or any trademark that includes Coca-Cola or Coke (Coca-Cola Trademark Beverages) accounted for approximately 53% of the Company’s total concentrate sales. In 2007, concentrate sales in the United States (U.S. concentrate sales) represented approximately 24% of the Company’s Quality Is Our Highest Business objective 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 ever-changing expectations because keeping our Quality promise in the marketplace is our highest business objective and our enduring obligation. Consumers across the globe choose our brand of refreshment more than a billion times every day because Coca-Cola is. The Symbol of Quality Customer and Consumer Satisfaction A Responsible Citizen of the World

Corporate Citizenship The Coca-Cola Company believes our business has always been based on the trust consumers everywhere place in us—trust that is earned by what we do as a corporate citizen and by our ability to live our values as a commercial enterprise. There is much in our world to celebrate, refresh, strengthen and protect. Through our actions as local citizens, we strive every day to refresh the marketplace, enrich the workplace, preserve the environment and strengthen our communities. At the heart of our business is the trust consumers place in us. They rightly expect that we are managing our business according to sound ethical principles, that we are enhancing the health of our communities, and that we are using natural resources responsibly.

36

Coca-Cola Advertisements It’s the Real Thing Advertising has played an important role in the success of company’s products since 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 CocaCola 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 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

Revenue According to the 2005 Annual Report, the company sells beverage products in more than 312 countries or territories. The report further states that of the more than 90 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 4.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78% of the Company's total gallon sales. Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows: 37% in the United States 43% in Mexico, Brazil, Japan and China 20% spread throughout the world 37

Coca cola in India The Coca Cola got approval from the Government of India in July 1996 for setting up a company (holding type) for investing US $ 700 Millions. In July 1997 the holding company got permission for its bottling subsidiaries. The company has stepped forward for reaching 300 millions soft drink consumers through 700,000 retail outlets In India. The coca cola company in India has given a direct employment of over 7,000 peoples. Over the years the company has invested around US $827 Millions in India. The company has also taken different initiatives in India for the social sector development in the recent year’s sponsorship program.

Coca- Cola Company in Jaipur This is the one of the biggest leading company in beverage sector in Jaipur also. In the Jaipur the coca cola company is a manufacturing company. They are producing several brands like Thumps up, Coca Cola, Sprite, Limca, Fanta, Mazza and they have come with their new brand Minute Maid Pulpy Orange. Pulpy orange is the sixty year old brand in China but for India it is new. Apart from this company also produces products like Kinley soda & water and Bonaqua new water brand.

Products and brands The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its namesake Coca-Cola beverage. This includes other varieties of Coca-Cola such as: Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-based sweetener in place of sugar Diet Coke Caffeine-Free Cherry Coke (1985) Diet Cherry Coke (1986) Coke with Lemon (2001) Diet Coke with Lemon (2001) Vanilla Coke (2002) Diet Vanilla Coke (2002) Coca-Cola C2 (2004) Coke with Lime (2004) Diet Coke with Lime (2004)

38

Diet Coke Sweetened with Splenda (2005) Coca-Cola Zero (2005) Coca-Cola Black Cherry Vanilla (2006) Diet Coca-Cola Black Cherry Vanilla (2006) Coca-Cola BlāK (2006) Diet Coke Plus (2007) Coca-Cola Orange (2007) Summer Of US Coke Range (2007-2008)

39

CHAPTER 3: METHODOLOGY

Route Visit for Sales & Marketing Method of Data Collection Primary Data Research Instrument Area of Sampling Sample Size Sampling Procedure

40

Research Methodology Route Visit for Sales & marketing: I visited the routs with the MD or Sales executive or with the Company’s and distributor’s vehicle where they supply the products. There I observed the display norms for outlets in all route & each type of outlet. Every morning I went to one corresponding route & observed all techniques of selling product to retailers also try to know the mentality of the consumers and retailers.

I visited following towns: 1. DUDU 2. PADASOLI 3. RAMNAGAR 4. PHULERA 5. RINGUS 6. HARMADA 7. CHOMU 8. KHATU SHYAMJI 9. BHANKROTA 10. MAHLA

41

Data Collection I have collected two types of data: 1- Primary Data 2- Secondary Data

1. Primary Data Collection:Here survey method of data collection is preferred which is very suitable to reach the researchers motto.  Research Instrument: - Printed questionnaire was used as the research instrument to collect the required information.  Area of Survey: - The survey was conducted in two towns of Jaipur district Dudu and Phulera.

Sampling Plan: - Sampling plan consists of:  Sampling Unit: - The retailer of grocery shop, general store, betel shop, was selected from different places of Dudu and Phulera towns.  Sample Size: - For this study I have taken sample size of 100 respondents  Sampling Procedure: - Simple Random sampling procedure was followed.  Sampling Method: - Data were collected by retailer survey. The retailers are directly contacted and interviewed at their retail counter.

2. Secondary Data Collection:I have collected secondary data from company records. Any other kind of secondary data has not been collected from the retailers. I have been providing various details about the company.

42

Limitations: Though this study was taken up with sincere effort to accomplish the objectives, there were certain factors that held back the satisfactory completion of the same. These factors include:  The study being undertaken in the peak season of May month might not have produced accurate data.  Some retailers shown non-cooperative behavior at the time of data collection for this study.  The research was depend on the information provided by the respondents (retailers). It may be biased or insufficient.

43

CHAPTER 4: ANALYSIS AND INTERPRETATION Analysis of the data Data are collected from two towns of Jaipur district: Dudu (sample size of 50 outlets) Phulera (sample size of 49 outlets)

Survey Analysis The survey was conducted in different towns of Jaipur district. A total survey of 100 outlets was conducted. With the use of collected data I have tried to give the answers of following questions: 1. How many outlets is KO exclusive, PC exclusive or Shared? 2. Market share of Coca Cola and Pepsi Company according to the sales volume of month May, 2009. 3. Coca Cola and Pepsi empties (Cases bottles) available in the outlets? 4. Channels of outlets? 5. Availability of cooling systems in the outlets? 6. How many outlets are seasonal and permanent? 7. How many Drinking shots are available on outlets? 8. How many outlets have Racks? 9. Income class of the outlets?

44

1. How many outlets is KO exclusive, PC exclusive or Shared? Dudu

KO Exclusive 20%

KO Exclusive PC Exclucive Shared 62%

PC Exclucive 18%

Shared

INTERPRETATION With the help of pie chart I have interpreted 62% outlets are selling Coke and Pepsi both the brand (shared) and 20% outlets are selling only Coke brand (exclusive).

Phulera

Shared 40%

KO Exclusive 30% KO Exclusive PC Exclusive Shared

PC Exclusive 30%

INTERPRETATION With the help of pie chart I have interpreted 40% outlets are selling Coke and Pepsi both the brand (shared) and 30% outlets are selling only Coke brand (exclusive). 45

2. Market share of Coca Cola and Pepsi Company according to the sales volume of month May, 2009. Dudu

PC 40%

KO KO 60%

PC

INTERPRETATION According to pie-chart we can see Coca Cola Company is the market leader with the 60% of the market share and Pepsi has only 40% market share in Dudu town. Phulera

PC 35% KO PC KO 65%

INTERPRETATION As we can see in Phulera also Coca Cola Company is the market leader with the 65% of the market share and Pepsi has only 35% market share.

46

3. Coca Cola and Pepsi empties (Cases bottles) available in the outlets? Dudu

PC 371 39%

KO KO 578 61%

PC

INTERPRETATION It is clear from the chart that Coca cola has 61% empties comparing to 39% of Pepsi. Phulera

PC 76 33%

KO KO 151 67%

INTERPRETATION As per chart it is clear that Coca cola has 67 % empties comparing to Pepsi.

47

PC

4. Channels of outlets? Dudu

ED-2 24%

Grocery 29% Grocery Convenience

ED-1 8%

ED-1 ED-2 Convenience 39%

INTERPRETATION As per chart we can say that max 39% outlets are convenience and 29% outlets are Grocery.

Phulera ED-2 3% ED-1 6%

Grocery 19% Grocery Convenience ED-1 ED-2

Convenience 72%

INTERPRETATION According to chart we can see that in Phulera town max 72% outlets are comes under Convenience and 19% outlets come under Grocery.

48

5. Availability of cooling systems in the outlets? Dudu

KO-VC 28%

OWN 37%

KO-VC KO-CC KO-OYA PC-VC

KO-CC 8% KO-OYA PC-OYA PC-CC PC-VC 8% 11% 2% 6%

PC-CC PC-OYA OWN

INTERPRETATION It is clear that 37% outlets have there own freeze, 28% outlets have Coca cola visicoolers and only 6% have Pepsi visi-coolers, 8% have Coca cola chest cooler and only 2% have Pepsi chest cooler. Phulera

KO-VC 15% KO-CC 9% KO-OYA 6%

OWN 58%

PC-VC 6%

KO-VC KO-CC KO-OYA PC-VC PC-OYA OWN

PC-OYA 6%

INTERPRETATION It is clear that 58% outlets have there own freeze, 15% outlets have Coca cola visicoolers and only 6% have Pepsi visi-coolers, 9% have Coca cola chest cooler and only 6% have Pepsi chest cooler.

49

6. How many outlets are seasonal and permanent? Dudu

Seasonal 47%

Permanent 53%

Seasonal Permanent

INTERPRETATION According to data in Dudu town 53% outlets are permanent and 47% outlets are seasonal.

Phulera

Seasonal 39%

Seasonal Permanent

Permanent 61%

INTERPRETATION As per data 61% of outlets are permanent and only 39% outlets are seasonal.

50

7. How many Drinking shots are available on outlets? Dudu

PC 5 22% KO PC KO 18 78%

INTERPRETATION It is clear that 78% outlets have Coca cola’s drinking shots but only 22% outlets have Pepsi Drinking shots.

Phulera

PC 4 44%

KO 5 56%

KO PC

INTERPRETATION As per data we can see that 56% of outlets have Coca cola’s drinking shots and 44% outlets have Pepsi’s drinking shots.

51

8. How many outlets have Racks? Dudu

PC 33% KO PC KO 67%

INTERPRETATION According to chart it is clear that 67% outlets have Coca cola’s rack but only 33% outlets have Pepsi’s rack.

Phulera

PC 43%

KO KO 57%

PC

INTERPRETATION As per chart we can see that 57% outlets have Coca cola’s racks and 43% outlets have Pepsi’s racks.

52

9. Income class of the outlets? Dudu

High 12% Low 37%

Low Medium High

Medium 51%

INTERPRETATION According to data shown in the chart we can see that maximum 51% outlets in Dudu town comes under medium class,37% outlets comes under low category and only 12% are in high class.

Phulera

High 5% Medium 20% Low Medium High Low 75%

INTERPRETATION As per chart it is clear that maximum 75% outlets comes under low category,20% outlets comes under medium class and only 5% of outlets are in high class.

53

CHAPTER 5: FINDINGS AND SUGGESTIONS

Findings Suggestions Conclusion

Findings:  In Jaipur region Coca cola Company is providing less schemes to retailers comparing to competitors. Some retailers are not satisfied with the schemes provided by company

 On Phulera railway station most of the retailers are selling competitors product. They have some demands which can be satisfied by the company.

 On some outlets Coke RGB cases are available but bottles are exchanged by competitors, therefore coke suppliers are facing problem to provide them RGB products due to lack of empties.

 Some activation things like racks and hanger are not enough in Dudu and Phulera market.

 Thums up is the most selling brand of the company.  Coke has been rapidly providing visi coolers to retailers at present 25 Coke Visi-coolers are available in Dudu town.

 Coke’s RED concept is very effective, it ensure the availability of products and activation on outlets.

54

 In both of towns market share of Coke is more then its competitors.  Company is facing competition with local brands like Captain, Toral., Jayanti etc. They are providing same products with low quality in low rates.

 There are electricity phase problem in Dudu area, so visi coolers need more 

maintenance, I found that Fanta promotion programs which was held in Dudu and Phulera towns is effective in order to make aware the peoples about the product.

Suggestions:  Company should increase its schemes because competitors are providing almost double schemes comparing to coke.

 In winter company should provide more schemes to retailers in order to increase the sales.

 Company should provide the special discounts on Phulera railway station then they may be ready to sell the coke’s products. Because they are permanent counters so it will help to company to maintain its sales in the winter also.

 MDs and sales men should be given some more powers of decision making. For example they can make their own strategy of marketing according to situation of their territory.

 Proper display of products play important role in sales so company should provide enough rakes, hangers and other tools to retailers.

 Company should make some strategy to compete with local cold drink brands.

 Promotion program which was held for Fanta in Dudu and Phulera towns should be done for other brands also.

55

 Most of MDs are working on vertical expansion only; they should work for horizontal expansion also.

Conclusion: I have studied on topic ―RED activation and Sales and Distribution‖ of Coca-Cola Company in Jaipur district’. The objective of my study was to find out the market share of COKE in the comparison of the PEPSI, study on RED concept and find out that how many outlets are selling the COKE products. To study the RED concept I visited different routes in company’s vehicle. I worked on RED in different towns with company’s MDs and sales team leader. Finally to know the market share of company I have taken two town’s outlets to achieving my objectives i.e. Dudu and Phulera. I have taken 100 outlets as sample size of my study. I have collected primary data from outlets by taking interview from them and secondary data taken from company’s record. Then after I analyzed the data and interpret ended it. During my study I found the most popular flavor in the market is cola, In Dudu Market share of COKE (60%) is higher than PEPSI (40%) and in Phulera also market of of Coke(65%) is higher then Pepsi(35%). Coca-Cola is market leader and Pepsi is the market challenger in the whole market where I have surveyed, Pepsi is providing more schemes than the CocaCola, Sales has increased after locating visi cooler out side of outlet etc. I have concluded that market share of Coca-Cola is higher than Pepsi and almost all the outlets are selling the coke’s products.. After my study I can suggest the company should work out early on their complains regarding to visi cooler, Availability of visi cooler in the outlets should be increase so that sale could increase, Company should give proper scheme to the outlets and in the last I would like to say that Pepsi is far away from the Coke in the competition.

56

BIBILOGRAPHY:

INTERNET: www.cokeiindia.com www.coca-colaindia.com www.oligopolywatch.com www.superbrand.com

TEXT BOOK: Marketing concepts & cases Marketing Management

Etlzer, Walker & Stanton Kotler and Keller

RESEARCH PAPER: News & Magazine

57