COCA COLA INDIA LTD.

MODERN TRADE
IMPACT OF COCA COLA

SUBMITTED BY

Timir Baran Basu

ICFAI National College
3rd Semester
2008-2010 batch

UNDER THE GUIDENCE OF

COMPANY GUIDE: Mr. Ratnadeep Dey

Mr. Arpan Saikia

The project covers Modern trades and their impact on the beverage companies. Especially
on COCA COLA. What is the procedure of their dealings, how they maintain their
relationship and many more………………..

Page 1
Acknowledgement
At the very outset, I would like to give my heartfelt thanks to my S.I.P. Company
‘COCA COLA’ for considering me as a management trainee in its organization. It
is only because of the Company that I have gathered my first experience in the
corporate world and this training of 3 months has well equipped me with a lot of
new qualities.I would like to forward my thanks to my Company Guide Mr.
Ratnadeep Dey and Mr. Arpan Saikia who has been one of the prominent figures
during the course of my Internship Programme. He has always been very kind
towards me and taught me about each and every small thing in a very considerate
manner, showing me my drawbacks and also helping me rectifying it. I shall
always be indebted to him for being a good guide during my first experience in
the corporate field. I would also like to thank my Faculty guide, Mr. Jagadish
Nath from the core of my heart. He has been one of the best mentor throughout
my entire hardships of the Internship Programme. He has been a great source of
inspiration for the achievements that I have made so far during the 3 months of
my S.I.P. I shall always be indebted to him for his great support. Last but not the
least; I would like to thank all those people who were directly or indirectly related
to the accomplishment of my work. They were very cooperative and have been
really considerate towards me. They had shared their opinion with me in the
course of interaction and their various views have paved a new way for me to
have a new outlook towards what the customers expect from a service provider.
This survey is an eye opener for most of the students who are for the first time are
experiencing working in the dynamic corporate market. My friends have been
like a pillar of strength who have stood by me at all times during this
project. I would also like to thank my family members, without their
love and support I would not have been here. Last but not the least I
would like to thank God and my institution for giving me an opportunity
which has helped me explore the best in me.

Page 2
Content
PROJECT
• SYNOPSIS…………………………………………………………
• RESEARCH PROBLEM…………………………………………..
• INTRODUCTION………………………………………………….
• OBJECTIVE………………………………………………………..
• LIMITATION………………………………………………………
• METHODOLOGY…………………………………………………
• PROCEEDURE…………………………………………………….
• HISTORY OF THE COMPANY…………………………………..
• PRODUCTION PROCEEDURE…………………………………..
• RECENT UPDATES……………………………………………….
• DIFFERENT PRODUCTS OF COCA COLA……………………...
• COMPANY PROFILE………………………………………………
• AIMS OF THE COMPANY…………………………………………
• OBJECTIVES OF THE COMPANY………………………………..
• DISTRIBUTION CHANNELIZATION……………………………..
• MODERN TRADE…………………………………………………..
• MODERN TRADE IN GUWAHATI………………………………..
• PROCEEDURE OF DEALINGS………………………………….....
• CUSTOMERS OF MODERN TRADE………………………………
• COMPETITORS………………………………………………………
• VISI-COOLER STANDARDS……………………………………….
• QUESTIONS ASKED TO THE CONSUMERS……………………..
• QUESTIONS ASKED TO THE OUTLETS………………………….
• LEARNING IN EXECUTIVE TRAINING…………………………..
• SUGESSIONS…………………………………………………………
• COMPANY FEEDBACK……………………………………………...
• CONCLUSION…………………………………………………………
• BIBLIOGRAPHY……………………………………………………....
• ROOT MAP……..………………………………………………………

Page 3
 Synopsis

Soft- drinks have been found to be an effective medium of refreshment, which can cover
large population packets within low cost. In Summer Soft-drinks is the only medium that
has a one-on-one relationship with consumers. A person likes to have soft-drinks to get
rid of heat of summer, and not only in summer but in other seasons also it is the best way
of refreshment. Owing to the usefulness of soft-drinks in refreshment, now a days it has
been used as medium of honor and used in different social occasions.

Page 4
Soft-drinks are an effective medium of refreshment for all the classes of people. Though
their was a time where soft-drinks lost its hold in the Indian market but in recent times its
back with a bang and it’s now a business of more then 15000crore. Because of the
growing popularity of soft-drinks there is a fierce competition between various
companies which have made the products more competent and rational so that they don’t
loose their hold in the market and have a competitive edge over its competitors.
Soft-drinks Industry is growing very rapidly, as many players are joining the industry
now and then, some of the major players are COCA COLA, PEPSICO, PERLEY AGRO
and many more who are taking the Lionel part of the market share in the Indian market.
It has becomes important for all the companies to know the market well so that they can
survive the competition and this could be done if they know the ambiguity of the
customers that might hamper their business in future. The project which has been given
to me by COCA COLA is mainly to study the behavior of the customers of the Modern
Trade in the city and make a thorough analysis of the trading procedure of COCA COLA
with the Modern trades through survey.
The COCA COLA Company put the emphasis on the project because they want to know
about their loopholes in the sales procedure and the distribution channelization and what
are their competitive advantages so that they make their position in the business more
strong. They also want to know what the consumers expect from them so that they can
offer better products and services according to the taste and the preference of their
customers.

The Company wants to have better understanding of its impact on local

people lives. The project evaluates the public's perception on different
products available in the city and compares RETAIL TRADE with MODERN
TRADE, and also to analyze MODERN TRADE with benchmarks and considers
what turns SOFT-DRINKS might take in future.

Page 5
 Research Problem

Soft- drinks reaches out to 90 per cent of India’s population and is the most cost-effective
medium of refreshment. So we can term soft-drinks as a medium for communication and
refreshment. In last few years soft-drinks has revived again as the people in India uses the
soft-drinks as a medium of their feelings, so in party or in get together or refresh the soul
they uses the only medium which is soft-drinks. The better products with an affordable
range of the price lists have made soft-drinks an effective medium of refreshment. But
again there are some basic problems in the soft-drinks industry i.e. when people consume
these soft-drinks it have a side effect the human boy also as its ingredients includes
carbon and a high amount of saccharine, sugar and different types of acids. When they
see any advertisement they conceptualize the advertisement in their own mind which
might sometimes change the meaning of the message because sometimes the
advertisements are very action –packed performed by the idols from different sectors, so
general people also want to follow them and could herm him/herself. Moreover there is a
fierce competition between various soft-drinks companies which have made the products
more competent and rational so that they don’t loose their hold in the market and have a
competitive edge over its competitors.

The project is mainly to make an analysis of some competitive soft-drink companies in

the city who are doing their business in Modern Trades and make a through analysis of
the survey.

Page 6
 • INTRODUCTION:-----

BACKGROUND:-----

Soft drinks are enormously popular beverages consisting primarily of carbonated water,
sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual
consumption of more than 34 billion gallons. Soft drinks rank as America's favorite
beverage segment, representing 25% of the total beverage market. In the early 1990s per
capita consumption of soft drinks in the U.S. was 49 gallons, 15 gallons more than the
next most popular beverage, water.

The roots of soft drinks extend to ancient times. Two thousand years ago Greeks and
Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a
practice that continues to the present. In the late 1700s Europeans and Americans began
drinking the sparkling mineral water for its reputed therapeutic benefits. The first
imitation mineral water in the U.S. was patented in 1809. It was called "soda water" and
consisted of water and sodium bicarbonate mixed with acid to add effervescence.
Pharmacists in America and Europe experimented with myriad ingredients in the hope of
finding new remedies for various ailments. Already the flavored soda waters were hailed
as brain tonics for curing headaches, hangovers, and nervous afflictions.

Pharmacies equipped with "soda fountains" featuring the medicinal soda water soon
developed into regular meeting places for local populations. Flavored soda water gained
popularity not only for medicinal benefits but for the refreshing taste as well. The market
expanded in the 1830s when soda water was first sold in glass bottles. Filling and capping
the gaseous liquid in containers was a difficult process until 1850, when a manual filling
and corking machine was successfully designed. The term "soda pop" originated in the
1860s from the popping sound of escaping gas as a soda bottle was opened.

New soda flavors constantly appeared on the market. Some of the more popular flavors
were ginger ale, sarsaparilla, root beer, lemon, and other fruit flavors. In the early 1880s
pharmacists experimented with powerful stimulants to add to soda water, including cola
nuts and coca leaves. They were inspired by Bolivian Indian workers who chewed coca
leaves to ward off fatigue and by West African workers who chewed cola nuts as a
stimulant. In 1886 an Atlanta pharmacist, John Pemberton, took the fateful step of
combining coca with cola, thus creating what would become the world's most famous
drink, "Coca-Cola". The beverage was advertised as refreshing as well as therapeutic:
"French Wine Cola—Ideal Nerve and Tonic Stimulant." A few years later another
pharmacist, Caleb Bradham, created "Pepsi-Cola" in North Carolina. Although the name
was a derivation of pepsin, an acid that aids digestion, Pepsi did not advertise the
beverage as having therapeutic benefits. By the early 20th century, most cola companies
focused their advertising on the refreshing aspects of their drinks.

Page 7
As flavored carbonated beverages gained popularity, manufacturers struggled to find an
appropriate name for the drinks. Some suggested "marble water," "syrup water," and
"aerated water." The most appealing name, however, was "soft drink," adapted in the
hopes that soft drinks would ultimately supplant the "hard liquor" market. Although the
idea never stuck, the term soft drink did.

Until the 1890s soft drinks were produced manually, from blowing bottles individually to
filling and packaging. During the following two decades automated machinery greatly
increased the productivity of soft drink plants. Probably the most important development
in bottling technology occurred with the invention of the "crown cap" in 1892, which
successfully contained the carbon dioxide gas in glass bottles. The crown cap design
endured for 70 years.

The advent of motor vehicles spawned further growth in the soft drink industry. Vending
machines, serving soft drinks in cups, became regular fixtures at service stations across
the country. In the late 1950s aluminum beverage cans were introduced, equipped with
convenient pull-ring tabs and later with stay-on tabs. Light-weight and break-resistant
plastic bottles came into use in the 1970s, though it was not until 1991 that the soft drink
industry used plastic PET (polyethylene terephthalate) on a wide scale.

Soft drink manufacturers have been quick to respond to consumer preferences. In 1962
diet colas were introduced in response to the fashion of thinness for women. In the 1980s
the growing health consciousness of the country led to the creation of caffeine-free and
low-sodium soft drinks. The 1990s ushered in clear colas that were colorless, caffeine-
free, and preservative-free.

Page 8
 Objective

The objectives of the projects are:-

 To make the comparative analysis between the soft-drinks companies

in the City who are dealing with Modern Trades.
 Expectation of customers from the soft-drink companies especially
from COCA COLA.
 To provide the company with the suggestion that comes from the
customers.
 To know about the customers preference of COCA COLA’s products
with other companies products.
 Area where the company is lacking behind.
 Their Competitive advantage.

Limitation
 The study seeks to provide a helicopter view of the field reality and hence
inferences drawn don’t provide conclusive evidence.
 During the survey the whole of the city was not covered most of the part
of the city was remained untouched.
 Such survey needs to be undertaken periodically to gauge the exact
consumer perception that they keep changing with the time.

Page 9
 It may so happen that consumers provide an incomplete information or
even wrong information.
 Sometimes listeners are reluctant to provide us with correct information.

 Sometimes listeners are reluctant to provide us with correction

information.
 Some of the respondents did not answer properly as they were busy hence the right
information could not be obtained.
 Since I was not familiar with the area of operation the study took more time than what
it actually deserved.
 Due to the climatic condition sometime problem arises regarding daily sales targets.
 Lots of competition among various companies, all of which can not be touched.

Methodology

To decide on the plan of action, the entire project was divided into parts. The
first part involved the desk research of the available literature. Information collected
in this section was to provide an introduction to the soft-drinks industry, COCA-COLA
and its competitors.

The second part actually involved designing the questionnaire, conducting interviews and
analyzing the data for the primary research.

The main focus of the project was to make comparative analysis between different soft-
drinks companies in Guwahati city.

Page 10
The survey has been conducted using both Primary Data as well as Secondary Data. The
sources of both are:

• PRIMARY DATA SOURCES:-

Data are collected from personal interview from various parts of the citiy and between
various age groups. Most of the research findings are dependent on the response given by
them.

As an instrument of collecting Primary Data, questionnaire method is used here. The

questionnaire contains a set of questions presented to respondents to get relevant answers.

• SECONDARY DATA SOURCES:-

Data collecting from the record observation made by the company. Also partly by
consulting journals, magazines and publications and surfing the website.

SAMPLING PLAN:-

As a sampling procedure, both techniques of sampling i.e. probability sampling as well

as non probability sampling is used. In the probability sampling, stratified random
sampling as well as simple random sampling is applied. In the non probability sampling,
judgment sampling is applied here. Both the sampling methods of probability sampling
mentioned here are used as in all the areas simple random sampling is not applicable and
in some cases stratification is a must.

SCALE:

The data required for measuring the quantitative and the parameters of the project a self
developed questionnaire is made which given to the customers for getting the required
information. The questionnaire for the above project is in the form of appendix below.

Page 11
Page 12
 PROCEDURE

Procedure for the collection of information was as follows:

 First of the questionnaire was prepared and then survey was conducted to collect
more information and to know about the ground reality of the performance of the
company. This questionnaire was supposed to be produced to the customers of the
company to be filled by them.
 There are two types of Questionnaires which were prepared, one for the peoples
from Modern Trade and the second type was for the customers of Modern Trade..
 Secondly I also collected data from internet to know more about the company, its
customers, and its competitors.
 Lastly to come to any conclusion based on the information collected through
various sources.

Page 13
RESEARCH METHODOLOGY DIAGRAM

DEVELOP OBJECTIVES

Design of Qualitative Research

• Methodology
• Sample Design
• Data Collection Instrument

Designing of Questionnaire

Collection of Data through

Interview and Survey

Limitation

Data Analysis

Reports, Findings, Suggestion & Conclusion

Page 14
 THE HISTORY OF COCA COLA COMPANY

The first Coca-Cola recipe was invented in Columbus, Georgia, by John Stith Pemberton,
originally as a cocawine called Pemberton's French Wine Coca in 1885. He may have
been inspired by the formidable success of European Angelo Mariani's cocawine, Vin
Mariani. In 1885, when Atlanta and Fulton County passed Prohibition legislation,
Pemberton responded by developing Coca-Cola, essentially a carbonated, non-alcoholic
version of French Wine Cola. The first sales were at Jacob's Pharmacy in Atlanta,
Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass
at soda fountains, which were popular in the United States at the time due to the belief
that carbonated water was good for the health. Pemberton claimed Coca-Cola cured many
diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and
impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same
year in the Atlanta Journal. For the first eight months only nine drinks were sold each
day. By 1888, three versions of Coca-Cola — sold by three separate businesses — were
on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering from
an ongoing addiction to morphine, Pemberton sold the rights a second time to four more
businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth.
Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version
of the product. In an attempt to clarify the situation, John Pemberton declared that the
name Coca-Cola belonged to Charley, but the other two manufacturers could continue to
use the formula. So, in the summer of 1888, Candler sold his beverage under the names
Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal
claim to Coca-Cola in late 1888, in order to force his two competitors out of the business.
Candler purchased exclusive rights to the formula from John Pemberton, Margaret
Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her
signature on the bill of sale had been forged, and subsequent analysis has indicated John
Pemberton's signature was most likely a forgery as well. In 1892, Candler incorporated a
second company, The Coca-Cola Company (the current corporation), and in 1910,
Candler had the earliest records of the company burned, further obscuring its legal
origins. Regardless, Candler began marketing the product, although the efficacy of his
concerted advertising campaign would not be realized until much later. By the time of its
50th anniversary, the drink had reached the status of a national icon for the USA. In
1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor
changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first
time on March 12, 1894. Cans of Coke first appeared in 1955. The first bottling of Coca-
Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its

Page 15
proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very
different from the much later hobble-skirt design that is now so familiar. Asa Candler
was tentative about bottling the drink, but the two entrepreneurs who proposed the idea
were so persuasive that Candler signed a contract giving them control of the procedure.
However, the loosely termed contract proved to be problematic for the company for
decades to come. Legal matters were not helped by the decision of the bottlers to
subcontract to other companies—in effect, becoming parent bottlers.Coke concentrate, or
Coke syrup, was and is sold separately at pharmacies in small quantities, as an over-the-
counter remedy for nausea or mildly upset stomach.

BACKGROUND:-----

Soft drinks are enormously popular beverages consisting primarily of carbonated water,
sugar, and flavorings. Nearly 200 nations enjoy the sweet, sparkling soda with an annual
consumption of more than 34 billion gallons. Soft drinks rank as America's favorite
beverage segment, representing 25% of the total beverage market. In the early 1990s per
capita consumption of soft drinks in the U.S. was 49 gallons, 15 gallons more than the
next most popular beverage, water.

The roots of soft drinks extend to ancient times. Two thousand years ago Greeks and
Romans recognized the medicinal value of mineral water and bathed in it for relaxation, a
practice that continues to the present. In the late 1700s Europeans and Americans began
drinking the sparkling mineral water for its reputed therapeutic benefits. The first
imitation mineral water in the U.S. was patented in 1809. It was called "soda water" and
consisted of water and sodium bicarbonate mixed with acid to add effervescence.
Pharmacists in America and Europe experimented with myriad ingredients in the hope of
finding new remedies for various ailments. Already the flavored soda waters were hailed
as brain tonics for curing headaches, hangovers, and nervous afflictions.

Pharmacies equipped with "soda fountains" featuring the medicinal soda water soon
developed into regular meeting places for local populations. Flavored soda water gained
popularity not only for medicinal benefits but for the refreshing taste as well. The market
expanded in the 1830s when soda water was first sold in glass bottles. Filling and capping
the gaseous liquid in containers was a difficult process until 1850, when a manual filling
and corking machine was successfully designed. The term "soda pop" originated in the
1860s from the popping sound of escaping gas as a soda bottle was opened.

Page 16
New soda flavors constantly appeared on the market. Some of the more popular flavors
were ginger ale, sarsaparilla, root beer, lemon, and other fruit flavors. In the early 1880s
pharmacists experimented with powerful stimulants to add to soda water, including cola
nuts and coca leaves. They were inspired by Bolivian Indian workers who chewed coca
leaves to ward off fatigue and by West African workers who chewed cola nuts as a
stimulant. In 1886 an Atlanta pharmacist, John Pemberton, took the fateful step of
combining coca with cola, thus creating what would become the world's most famous
drink, "Coca-Cola". The beverage was advertised as refreshing as well as therapeutic:
"French Wine Cola—Ideal Nerve and Tonic Stimulant." A few years later another
pharmacist, Caleb Bradham, created "Pepsi-Cola" in North Carolina. Although the name
was a derivation of pepsin, an acid that aids digestion, Pepsi did not advertise the
beverage as having therapeutic benefits. By the early 20th century, most cola companies
focused their advertising on the refreshing aspects of their drinks.

As flavored carbonated beverages gained popularity, manufacturers struggled to find an

appropriate name for the drinks. Some suggested "marble water," "syrup water," and
"aerated water." The most appealing name, however, was "soft drink," adapted in the
hopes that soft drinks would ultimately supplant the "hard liquor" market. Although the
idea never stuck, the term soft drink did.

Until the 1890s soft drinks were produced manually, from blowing bottles individually to
filling and packaging. During the following two decades automated machinery greatly
increased the productivity of soft drink plants. Probably the most important development
in bottling technology occurred with the invention of the "crown cap" in 1892, which
successfully contained the carbon dioxide gas in glass bottles. The crown cap design
endured for 70 years.

The advent of motor vehicles spawned further growth in the soft drink industry. Vending
machines, serving soft drinks in cups, became regular fixtures at service stations across
the country. In the late 1950s aluminum beverage cans were introduced, equipped with
convenient pull-ring tabs and later with stay-on tabs. Light-weight and break-resistant
plastic bottles came into use in the 1970s, though it was not until 1991 that the soft drink
industry used plastic PET (polyethylene terephthalate) on a wide scale.

Soft drink manufacturers have been quick to respond to consumer preferences. In 1962
diet colas were introduced in response to the fashion of thinness for women. In the 1980s
the growing health consciousness of the country led to the creation of caffeine-free and
low-sodium soft drinks. The 1990s ushered in clear colas that were colorless, caffeine-
free, and preservative-free.

Page 17
USE OF STIMULANTS IN FORMULA
The beverage was named Coca-Cola because, originally, the stimulant mixed in the
beverage was coca leaves from South America, which the drug cocaine is derived from.
In addition, the drink was flavored using kola nuts, also acting as the beverage's source of
caffeine. Pemberton called for five ounces of coca leaf per gallon of syrup, a significant
dose, whereas, in 1891, Candler claimed his formula (altered extensively from
Pemberton's original) contained only a tenth of this amount. Coca-Cola did once contain
an estimated nine milligrams of cocaine per glass, but in 1903 it was removed. After
1904, Coca-Cola started using, instead of fresh leaves, "spent" leaves - the leftovers of
the cocaine-extraction process with cocaine trace levels left over at a molecular level. To
this day, Coca-Cola uses as an ingredient a non-narcotic coca leaf extract prepared at a
Stepan Company plant in Maywood, New Jersey. In the United States, Stepan Company
is the only manufacturing plant authorized by the Federal Government to import and
process the coca plant.

NEW COKE

New Coke stirred up a controversy when it replaced the original Coca-Cola in 1985.
Coca-Cola Classic was reinstated within a few months of New Coke's introduction into
the market.

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of
the drink. Some authorities believe that New Coke, as the reformulated drink was called,
was invented specifically to respond to its commercial competitor, Pepsi (which had

Page 18
more lemon oil and less orange oil, and used vanillin rather than vanilla). Double-blind
taste tests indicated that most consumers preferred the taste of Pepsi to Coke. In taste
tests, drinkers were more likely to respond positively to sweeter drinks, and Pepsi had the
advantage over Coke because it was much sweeter. Coca-Cola tinkered with the formula
and created "New Coke". Follow-up taste tests revealed that most consumers preferred
the taste of New Coke to both Coke and Pepsi. The reformulation was led by the then-
CEO of the company, Roberto Goizueta, and the president Don Keough. It is unclear
what part long-time company president Robert W. Woodruff played in the reformulation.
Goizueta claimed that Woodruff endorsed it a few months before his death in 1985;
others have pointed out that, as the two men were alone when the matter was discussed,
Goizueta might have misinterpreted the wishes of the dying Woodruff, who could speak
only in monosyllables. It has also been alleged that Woodruff might not have been able to
understand what Goizueta was telling him. The commercial failure of New Coke
therefore came as a grievous blow to the management of the Coca-Cola Company. It is
possible that customers would not have noticed the change if it had been made secretly or
gradually, and thus brand loyalty could have been maintained. Coca-Cola management
was unprepared, however, for the nostalgic sentiments the drink aroused in the American
public; some compared changing the Coke formula to rewriting the American
Constitution. The new Coca-Cola formula subsequently caused a public backlash. Gay
Mullins, from Seattle, Washington, founded the Old Cola Drinkers of America
organization, which attempted to sue the company, and lobbied for the formula of Old
Coke to be released into the public domain. This and other protests caused the company
to return to the old formula under the name Coca-Cola Classic on July 10, 1985. The
company was later accused of performing this volte-face as an elaborate ruse to introduce
a new product while reviving interest in the original. Donald Keough, company president
at the time, responded to the accusation by declaring: "Some critics will say Coca-Cola
made a marketing mistake. Some cynics will say that we planned the whole thing. The
truth is we are not that dumb, and we are not that smart." The Coca-Cola Company is the
world's largest consumer of natural vanilla extract. When New Coke was introduced in
1985, this had a severe impact on the economy of Madagascar, a prime vanilla exporter,
since New Coke used vanillin, a less-expensive synthetic substitute. Purchases of vanilla
more than halved during this period. But the flop of New Coke brought a recovery.
Meanwhile, the market share for New Coke had dwindled to only 3% by 1986. The
company renamed the product "Coke II" in 1992 (not to be confused with "Coke C2", a
reduced-sugar cola launched by Coca-Cola in 2004). However, sales falloff caused a
severe cutback in distribution. By 1998, it was sold in only a few places in the
Midwestern U.S.
21ST CENTURY

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of
2005 they planned a launch of a Diet Coke product sweetened with the artificial
sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi One. On
March 21, 2005, it announced another diet product, "Coca-Cola Zero", sweetened partly

Page 19
with a blend of aspartame and acesulfame potassium. Recently Coca-Cola has begun to
sell a new "healthy soda" Diet Coke with Vitamins B6, B12, Magnesium, Niacin, and
Zinc, marketed as "Diet Coke Plus". In April 2007, in Canada, the name "Coca-Cola
Classic" was changed back to "Coca-Cola". The word "Classic" was removed because
"New Coke" was no longer in production, eliminating the need to differentiate between
the two. The formula remained unchanged.

PRODUCTION
FORMULA

Coca-cola and bubbles

The exact formula of Coca-Cola is a famous trade secret. The original copy of the
formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in
1919. A popular myth states that only two executives have access to the formula, with
each executive having only half the formula. The truth is that while Coca-Cola does have
a rule restricting access to only two executives, each knows the entire formula and others,
in addition to the prescribed duo, have known the formulation process.

RAW MATERIALS

Carbonated water constitutes up to 94% of a soft drink. Carbon dioxide adds that special
sparkle and bite to the beverage and also acts as a mild preservative. Carbon dioxide is an
uniquely suitable gas for soft drinks because it is inert, non-toxic, and relatively
inexpensive and easy to liquefy.

Page 20
The second main ingredient is sugar, which makes up 7-12% of a soft drink. Used in
either dry or liquid form, sugar adds sweetness and body to the beverage, enhancing the
"mouth-feel," an important component for consumer enjoyment of a soft drink. Sugar
also balances flavors and acids.

Sugar-free soft drinks stemmed from a sugar scarcity during World War II. Soft drink
manufacturers turned to high-intensity sweeteners, mainly saccharin, which was phased
out in the 1970s when it was declared a potential carcinogen. Other sugar substitutes
were introduced more successfully, notably aspartame, or Nutra-Sweet, which was
widely used throughout the 1980s and 1990s for diet soft drinks. Because some high-
intensity sweeteners do not provide the desired mouth-feel and aftertaste of sugar, they
often are combined with sugar and other sweeteners and flavors to improve the beverage.

The overall flavor of a soft drink depends on an intricate balance of sweetness, tartness,
and acidity (pH). Acids add a sharpness to the background taste and enhance the thirst-
quenching experience by stimulating saliva flow.

The most common acid in soft drinks is citric acid, which has a lemony flavor. Acids also
reduce pH levels, mildly preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel, aroma, and appearance
of the beverage. There is an endless range of flavorings; they may be natural, natural
identical (chemically synthesized imitations), or artificial (chemically unrelated to natural
flavors). Emulsions are added to soft drinks primarily to enhance "eye appeal" by serving
as clouding agents. Emulsions are mixtures of liquids that are generally incompatible.
They consist of water-based elements, such as gums, pectins, and preservatives; and oil-
based liquids, such as flavors, colors, and weighing agents. Saponins enhance the foamy
head of certain soft drinks, like cream soda and ginger beer.

To impede the growth of microorganisms and prevent deterioration, preservatives are

added to soft drinks. Anti-oxidants, such as BHA and ascorbic acid, maintain color and
flavor. Beginning in the 1980s, soft drink manufacturers opted for natural additives in
response to increasing health concerns of the public.

THE MANUFACTURING PROCESS

Most soft drinks are made at local bottling and canning companies. Brand name franchise
companies grant licenses to bottlers to mix the soft drinks in strict accordance to their
secret formulas and their required manufacturing procedures.

CLARIFYING THE WATER

Page 21
 • The quality of water is crucial to the success of a soft drink. Impurities, such as
suspended particles, organic matter, and bacteria, may degrade taste and color.
They are generally removed through the traditional process of a series of
coagulation, filtration, and chlorination. Coagulation involves mixing a gelatinous
precipitate, or floc (ferric sulphate or aluminum sulphate), into the water. The floc
absorbs suspended particles, making them larger and more easily trapped by
filters. During the clarification process, alkalinity must be adjusted with an
addition of lime to reach the desired pH level.

FILTERING, STERILIZING, AND DECHLORINATING THE WATER

• The clarified water is poured through a sand filter to remove fine particles of floc.
The water passes through a layer of sand and courser beds of gravel to capture the
particles.
• Sterilization is necessary to destroy bacteria and organic compounds that might
spoil the water's taste or color. The water is pumped into a storage tank and is
dosed with a small amount of free chlorine. The chlorinated water remains in the
storage tank for about two hours until the reaction is complete.
• Next, an activated carbon filter dechlorinates the water and removes residual
organic matter, much like the sand filter. A vacuum pump de-aerates the water
before it passes into a dosing station.

MIXING THE INGRIDIENTS

• The dissolved sugar and flavor concentrates are pumped into the dosing station in
a predetermined sequence according to their compatibility. The ingredients are
conveyed into batch tanks where they are carefully mixed; too much agitation can
cause unwanted aeration. The syrup may be sterilized while in the tanks, using
ultraviolet radiation or flash pasteurization, which involves quickly heating and
cooling the mixture. Fruit based syrups generally must be pasteurized.
• The water and syrup are carefully combined by sophisticated machines, called
proportioners, which regulate the flow rates and ratios of the liquids. The vessels
are pressurized with carbon dioxide to prevent aeration of the mixture.

CARBONATING THE BEVARAGE

• Carbonation is generally added to the finished product, though it may be mixed

into the water at an earlier stage. The temperature of the liquid must be carefully
controlled since carbon dioxide solubility increases as the liquid temperature
decreases. Many carbonators are equipped with their own cooling systems. The
amount of carbon dioxide pressure used depends on the type of soft drink. For
instance, fruit drinks require far less carbonation than mixer drinks, such as
tonics, which are meant to be diluted with other liquids. The beverage is slightly

Page 22
 over-pressured with carbon dioxide to facilitate the movement into storage tanks
and ultimately to the filler machine.

FILLING AND PACKAGING

• The finished product is transferred into bottles or cans at extremely high flow
rates. The containers are immediately sealed with pressure-resistant closures,
either tinplate or steel crowns with corrugated edges, twist offs, or pull tabs.
• Because soft drinks are generally cooled during the manufacturing process, they
must be brought to room temperature before labeling to prevent condensation
from ruining the labels. This is usually achieved by spraying the containers with
warm water and drying them. Labels are then affixed to bottles to provide
information about the brand, ingredients, shelf life, and safe use of the product.
Most labels are made of paper though some are made of a plastic film. Cans are
generally pre-printed with product information before the filling stage.
• Finally, containers are packed into cartons or trays which are then shipped in
larger pallets or crates to distributors.

QUALITY CONTROL

Soft drink manufacturers adhere to strict water quality standards for allowable dissolved
solids, alkalinity, chlorides, sulfates, iron, and aluminum. Not only is it in the interest of
public health, but clean water also facilitates the production process and maintains
consistency in flavor, color, and body. Microbiological and other testing occur regularly.
The National Soft Drink Association and other agencies set standards for regulating the
quality of sugar and other ingredients. If soft drinks are produced with low-quality sugar,
particles in the beverage will spoil it, creating floc. To prevent such spoilage, sugar must
be carefully handled in dry, sanitized environments.

It is crucial for soft drink manufacturers to inspect raw materials before they are mixed
with other ingredients, because preservatives may not kill all bacteria. All tanks, pumps,
and containers are thoroughly sterilized and continuously monitored. Cans, made of
aluminum alloy or tin-coated low-carbon steel, are lacquered internally to seal the metal
and prevent corrosion from contact with the beverage. Soft drink manufacturers also
recommend specific storage conditions to retailers to insure that the beverages do not
spoil. The shelf life of soft drinks is generally at least one year.

RECYCLING

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The $27 billion dollar soft drink industry generated about 110 billion containers each
year in the early 1990s. About half of soft drink containers were aluminum cans and the
other half, about 35 billion, were PET plastic bottles. Nearly 60% of all soft drink
containers were recycled, the highest rate for any packaging in the United States.
Environmental concerns continued to lead to improvements and innovations in packaging
technology, including the development of refillable and reusable containers.

THE FUTURE OF COCA COLA

In the 1990s there were more than 450 types of soft drinks on the market and new flavors
and sweeteners are developed all the time to meet market demands. In the future,
advanced technology will lead to greater efficiency of soft drink production at all stages.
New methods of water clarification, sterilization, and pasteurization will improve
production and minimize the need for preservatives in soft drinks. Concerns with
consumer health, safety, and the environment will continue to have a positive impact on
trends in the soft drink industry.

RECENT UPDATES; INDIA'S CHRONIC AND WIDESPREAD WATER

SUPPLY PROBLEMS

“The Coca-Cola Company has recently announced, to much fanfare, a three-year,

US$20 million partnership with the World Wildlife Fund on water conservation.

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• At face value, such an announcement is obviously welcome. After all, who would

object to water conservation projects in a world where over 1 billion people still

lack access to clean drinking water?

• But the announcement by Coca-Cola deserves scrutiny - something sorely

lacking from the media and even NGO's - primarily because it is the Coca-Cola

Company that is announcing water conservation projects.

• The Coca Cola Company used 290 billion liters of water in 2006 alone, enough to

meet the entire world's drinking water needs for 10 days”. (Amit Srivastava, July

30, 2007) The Coca-Cola Company converted two-thirds of the freshwater it

used into wastewater. According to Srivastava, The company used the vast

majority of the freshwater it uses for cleaning in its production process, and the

result is that the Coca-Cola Company is a champion of turning perfectly fine (and

increasingly scarce) freshwater into wastewater.

• This article makes it very clear that Coca Cola’s image in India is not a very good

one. One of India’s biggest problems is the water shortage. Coca Cola used a lot

of water. It doesn’t take a high IQ to make the connection that these two things

don’t go well together. Coca Cola needs to look in to this problem with great

attention and figure out how to adjust or change their strategy or even developing

(water conversion) plans. To be able to build trust with the population, this is

what they must do in order to be able to create a strong and profitable market in

India.

Page 25
 DIFFERENT PRODUCTS OF COCA COLA :

The Coca Cola Company has seven products in the Guwahti market.
They are:

1) COCA-COLA

Coca cola is the world’s favorite drink as well as world’s most valuable
brands. “Coke” is the second most recognizable word across the word
after “OK”.

Coca cola’s advertising campaign Jo Chahe ho Jaye and Life ho to aisi was very popular
and had entered the youth’s vocabulary in 2002. Coca Cola launched the campaign
Thanda mat lab Coca Cola,Piyo Sar Utha ke , Sabka Thanda Ek, Which sky rocketed
the brand to make it India’s favorite soft drink.

2) THUMS UP

Page 26
Thums up is the leading carbonated soft drink and the most trusted
brand in India. It was introduced in the market in 1977. The Coca Cola
Company acquired Thums up in 1993.

This brand 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.

3) SPRITE :

Sprite is the named as the NO-4 Soft drink and is sold in more than 190 countries. In
India Sprite launched in the year of 1999 and today it has grown to be one f the fastest
growing soft drinks leading the clear lime category.

Today Sprite is perceived as a youth Icon because it encourages the

today’s youth to trust their instincts, influence them to be true to
whom they are and to obey their thirst.

Page 27
 3) FANTA

Fanta the orange drink of The Coca Cola Company is seen as one of
the favorite drinks since 1940s.It was introduced in Indian market in
the year of 1993.Over the years Fanta has occupied a strong market
place and is identified as “The Fun Catalyst”.

4) LIMCA:

Limca was introduced in the market in 1971 has been the thirst choice
of millions of consumers for over 3 decades. The brand has been
displaying healthy volume growths on year and Limca continues to be
the leading flavors soft drink in the country.

5) MAAZA:

Page 28
Maaza was launched in 1976. It was a drink that offered the same real
taste of fruits juices and was available throughout the year. In 1993
Maaza was acquired by Coca-Cola India.

The brands dominates the fruit drink category has been the result of
such successful campaigns line “Taaza Mango, Maazza Mango” and
“Botal mein Aam, Maaza hain Naam”.

6) KINLEY

Kinley water comes with the assurance of safety from the Coca-Cola
Company. The company introduces it with reverse osmosis along with
the latest technology to ensure the purity of company’s product.

COMPANY PROFILE
Company Name : HINDUSTAN COCA COLA BEVERAGES PVT LTD.

Address: Dihang arcade, ABC ,guwahati ,Assam

Page 29
The Atlanta pharmacist and patent medicine maker John S. Pemberton invented the soft
drink Coca-Cola in 1886. Its name, suggested by an employee, Frank Robinson.

Coca-Cola's exited its operations from the country in 1977 ,in the wake of the Foreign
Exchange Regulation Act (FERA) of 1973, after a 25- year presence in the Indian market,
but again Coca-Cola, reentered India in 1993.After reentering India, Coca-Cola
encountered problems one after the other. The company focused on establishing the Coke
brand quickly, believing that its international image was well entrenched in the minds of
the Indian consumers. However, the emergence of many local soft drink brands since the
time it had left India and competition from Pepsi, made things difficult for Coca-Cola. To
gain a quick entry into the market and neutralize Pepsi's early mover advantage, CCI
decided to buy out a local soft drink company, Parle in 1993. Parle's popular brands like
Thums Up, Limca, Maaza, Citra and Gold Spot had a 60% market share.

With virtually all the goods and services required to produce and market Coca-Cola being
made in India, the business system of the Company directly employs approximately
6,000 people, and indirectly creates employment for more than 125,000 people in related
industries through our vast procurement, supply and distribution system.

Basically, Coca Cola is an American based company. It has spread all over the
world through its different product lines which is mainly through its soft-
drinks products. Its branch in the Indian region is popularly known as the
Coca Cola India Ltd.

In 1886 an Atlanta pharmacist, John Pemberton, took the fateful step of combining coca
with cola, thus creating what would become the world's most famous drink, "Coca-Cola".
The beverage was advertised as refreshing as well as therapeutic: "French Wine Cola—
Ideal Nerve and Tonic Stimulant." A few years later another pharmacist, Caleb Bradham,
created "Pepsi-Cola" in North Carolina. Although the name was a derivation of pepsin,

Page 30
an acid that aids digestion, Pepsi did not advertise the beverage as having therapeutic
benefits. By the early 20th century, most cola companies focused their advertising on the
refreshing aspects of their drinks.

AIMS: ---

Business activity is focused around the achievement of appropriate business goals. These
can be categorized into Business aims and business objectives a business aim is the goal a
business wants to achieve. It may have several aims. In the private sector businesses aim
to make a profit. Others aim to survive as a primary aim, as survival is necessary for the
business to continue. Other aims include: expanding, maximizing sales, to be more
competitive and to be environmentally friendly.

A business objective is a detailed picture of a step you plan to take in order to achieve a
stated aim. These need to be SMART in order for the business to know what progress it
has made towards achieving the objective. SMART objectives are developed in the
theory section 'Setting aims and objectives'. Production aims for a company like Coca-
Cola or Nissan will focus on quality and meeting particular targets and standards.

Marketing aims for a company like Kellogg's or Kraft will focus on identifying and
meeting the needs of consumers. Customer service aims for organizations like the Inland
Revenue or Argos will focus on delighting customers. Business objectives and functional
objectives make it possible to set targets. These targets then create a direction for
activities.

OBJECTIVES:--

The overarching aims of an organization can be translated into specific activity

objectives. For example, a section head in a supermarket may have the objective at the
end of each working day to make sure that there are enough employees scheduled to
carry out the required work activities on the following day. Individual employees will
have their own work Objectives and schedules - e.g. to make sure that a particular section
of shelves are filled by a given time. Objectives therefore provide a clear structure for all

Page 31
of the various activities that an organization carries out. By measuring how well an
objective has or has not been achieved, managers can make necessary changes to their
activities to ensure progress and achievements of the stated objectives are made within
the timescale allocated. Objectives within an organization are established at a number of
levels from top level corporate objectives, down to team objectives and individual
objectives that create a framework for operational activities.

Downloaded from The Times 100 Edition - http://www.thetimes100.co.uk

Downloaded from The Times 100 Edition - http://www.thetimes100.co.uk

DISTRIBUTION CHANELIZATION:---

The company has to go through different channels to reach to its

ultimate customers. Mainly there are different distribution houses at different places of
the different cities. These distribution houses cover the different areas of the city. From
these distribution houses the Coke products reach to the outlets situated at different areas.
And from these outlets the products reach the ultimate customers.

This distribution channelization we can easily understand through

the example of the Guwahati city.

Page 32
 As there is a plant of Coca Cola in Barnihat an area situated near to
Guwahati. Here all the Coke products are produced & sent to all the distribution houses at
Guwahati .There are mainly four distribution houses in Guwahati. They are:---

A) Swastik

B) Ramdeo

C) Jai Mata Di

D) Purnima

A) Swastik covers the area from Bhangagarh to Barnihat &Guwahati Club to

Satgaon.

B) Ramdeo covers Jyotikuchi, Lokhora, Bhangagarh & Paltan Baazar.

C) Jai Mata Di covers the area of Maligaon to VIP.

D) Purnima covers Fancy Bazaar ,Pan Bazaar &Ambary area. So in this way they
covers the whole area of Guwahati & reach to their ultimate customers.

Page 33
 DISTRIBUTION NETWORK

COCA COLA’S OPERATION IN GUWAHATI:-

SWASTIK

RAMDEO
PLANT
RETAILERS

PURNIMA

JAI MATA DI

MODERN TRADE

With the organized retail sector growing at 30 per cent, the contribution of large-format
retail stores to the turnover of fast moving consumer goods (FMCG) firms is set to more
than double in 2008. The FMCG sector has taken some steps to match the pace of growth

Page 34
in the organized retail sector. Companies have launched dedicated sales personnel for
modern trade channels and taken initiatives to boost point of purchase (POP)
management at the large stores.

Modern trade refers to retailing through large-format stores whereas general trade refers
to retailing through kirana stores. V S Sitaram, executive director, marketing (consumer
care division) Dabur India said, “The servicing needs of modern trade are vastly different
from the traditional stores and it requires a ‘sell through’ approach. The exciting new
formats also open up immense opportunities for “brand activation” at the point of
purchase. The selling skills are vastly different and are of a higher order.
A team with appropriate skill sets has been put in place within Dabur India to respond to
the requirements in modern trade and the results are most encouraging. It has initiated a
programme titled “DARE – Driving Achievement of Retail Excellence” aimed at
improving Dabur’s distribution effectiveness in organized retail sector.
Industry experts say that while the emergence of modern trade has surely altered the retail
landscape in India, the fact remains that a bulk of FMCG sales still comes from
traditional trade. On an average 95 per cent of the sales come from kirana stores with a
meager 5 per cent coming from large format retail stores. For Dabur, about 3 per cent of
sales come from modern trade and it expects it to grow up to 7.5 per cent in the near
future.
For some categories of products like premium skin and hair care, organized retail
contributes a higher percentage of up to 50 per cent. Secondly, the main fear of FMCG
companies that modern retailers will squeeze their margins was dispelled by the head of a
leading retail chain who said in a seminar on retail that “Unlike developed countries
where FMCG companies are pressed on margins by retailers, in India since the retail
sector is just picking up, retailers tend to not pressurize companies for margins.
This year, FMCG major Hindustan Unilever (HUL) also announced a joint venture with
South-Africa based Smollan Holdings to provide “in-store” services to its customers and
point-of-purchase management at large format retail stores. Sanjiv Kakkar, executive
director, sales and customer development, HUL, said, “Modern trade in India is growing

Page 35
and evolving rapidly and our strategy for winning in this growing retail market is to win
at point-of-purchase with our shoppers and by delivering best-in-class service to our
modern trade customers. This JV will bring in world class execution excellence in the
market and build the right capabilities to deliver the company’s marketing strategy in
modern trade”. Market research reports say 25-40 per cent of consumers switch brands at
the point of sale driven by display or promotion. Other companies that have a dedicated
team for modern trade include Colgate-Palmolive, Procter & Gamble India and Marico.
However, the companies cannot afford to neglect kirana stores, as they still remain the
biggest source of revenue. Along with forming the JV with Smollan, HUL also went fast-
forward this year with its Super Value Store (SVS) programme, which is aimed at
enhancing the customer experience at select kirana stores in urban areas. Similarly,
Marico and Dabur launched Mera and Parivaar programme were aimed at activating the
general trade channel by giving consultancy to mom-and-pop shop owners. In retail,
consumers need convenience.

The neighborhood kirana store, by virtue of being the nearest store to the consumers, will
always occupy that position of convenience. Unlike a developed market where consumers
need to travel some distance for shopping, Indian consumers in most parts of the country
have the kirana stores to service them on all days, all through the year. The companies
hence are expected to follow a twin-focus in 2008 to get the most out of retailers.
Organized retail will give the companies access to high-income consumers and kirana
stores will give much greater volume, say analysts.

MODERN TRADES IN GUWAHATI

As with the present situation and the changing Economy Modern trades have influenced
general peoples mind and life. Human being is such an animal who wants to be lazy. So it
finds the way to decrease its workload and whenever the chance is given to him to

Page 36
decrease his workload he immediately grabs the opportunity. Again with that he has some
tremendous pressure of finishing his work in the shortest meanwhile as soon as possible.

In the previous years a man has to go to different places to buy all those things whatever
he needs, so it consumed much valuable time. That’s why the concept of Modern trade
came. It was a very wonderful concept, because for this concept much of the valuable
times are saved as all the possible items which are needed for easy going of day to day
life are available in such outlets.

This concept was firstly introduced in Germany. The outlet was so successful that the
concept was spread to all over the world very soon. The Modern trade concept came to
Guwahati in 1990’s, and the concept became very successful. So now there are 59
Modern trades in the city of Guwahati presently. They are:--

SL OUTLETS SL OUTLETS SL OUTLETS

NO. NO. NO.

1 GNRC 22 GNRC BELTOLA 40 GNRC CHA

GANESHGURI 1 2 NDMARI

2 GNRC 23 GNRC SIX MILES 41 GNRC

GANESHGURI 2 ANURADHA

3 GNRC SURVEY 1 24 GNRC HOSPITAL 42 GNRC GHY

CLUB

4 GNRC SURVEY 2 25 GNRC SATGAON 43 GNRC

UZANBAZAR

5 GNRC HATIGAON 26 GNRC NARENGI 44 GNRC ZOO

TINIALI

6 GNRC LAKHI 27 GNRC 45 GNRC JONALI

MANDIR NOONMATI

Page 37
7 GNRC BELTOLA 1 28 GNRC 46 GNRC
BAMUNIMAIDAN REHABARI

8 GNRC SILPUKURI 1 29 GREEN WOOD 47 CINEMAX

RESORT

9 GNRC SILPUKHURI 30 PANTALOON 48 POLITOS

2

10 GNRC ULUBARI 1 31 7 TO 9 NURSERY 49 GAMS

DELICACY

11 GNRC ULUBARI 2 32 DOWN TOWN 50 KHORIKA

HOSPITAL

12 GNRC 33 NAYAN TARA 51 PRARTHANA

KUMARPARA

13 GNRC PALTAN 34 ARAMBHANI 52 ANURADHA

BAZAR CINEMA

14 TANZ SUPER 35 ISBT 53 GHY

MARKET MEDICAL
COLLEGE

15 RAILWAYS 36 HUB 54 BIG BAZAR

16 ASSAM ENGG. 37 US PIZZA 55 CITY OVEN

COLLEGE

17 LUCKY STORE 38 PRASAD 56 CLAY OVEN

HATHIGAON RESTAURANT

18 B C STORE 39 TIWARI 57 MINI MART

HATHIGAON RESTAURANT
HATI GAON

19 IANTOSH 40 APSARA CICEMA 58 YAMEE POP

CORN

20 ACCOLAND 41 VISHAL MEGA 59 7 TO 9

Page 38
 MART

CHANDMARI

21 MARKETING
RELATED WORKS

Page 39
PROCEEDURE OF THE DEALINGS

The procedure of dealings of COCA COLA with Modern trade is a little bit different
from the small retail outlets. Generally in small outlets the process of pre- sell was done.
But it was found that the pre-sell method is not that much good as it was thought before.
Because in this concept the market developers go to the outlets and took the order and
submit it to the distributors and according to the orders, next day the salesmen go and
serve the products to the outlets. But some times there is an immediate need of the
products, and then the distributors can not deliver the products to the retailers which
create a bad impact. So now a day on the spot delivery system comes into existence, in
this system salesmen go with the products and deliver them according to the need of the
retailers.

But different from pre-sell and spot delivery system, in Modern trade another system
works. As modern trades like VISHAL MEGA MART, etc. deals in a large quantity so it
is almost difficult for the distributors to supply goods directly to those outlets. So the
products in these types of outlets come directly from the plant itself. But in comparatively
small outlets like GNRC’s, Cinema halls etc. the distributer itself delivers the products.

But here in Modern trades another concept of dealings exists which is known as PO
(PURCHASE ORDER) system. In this system the MD (MARKET DEVELOPER) who
visits the Modern trades go to the outlets and receives the PO (PURCHASE ORDER). A
Purchase Order is nothing but the systematized order slip of the products needed. In a PO
the address of registered office, address of the vendor, payment terms, VAT no., CST no,
and the description of the products are given. Generally the payment terms of the Modern
trade are nearly about 30 days, like in BIG BAZAR and in PANTALOON which are
under the same brand name FUTURE GROOPS the payment due term is 21 days.

After getting the PO the MD submits it to the distributor’s office. Then he delivers the
products to the respective outlets. After getting the products the Modern trade outlets give
GRN ( GOODS RECEIVED NOTE) to the MD or the company. Then they dispatched
this GRN to the head-office and within the specified limit the cheque of the desired
amount comes.

The PO includes some extra charges also , like Landing rate and tax. Here a chart shown
below to refer the Landing rates and taxes charged in the Big Bazar.

Page 40
ARTICLES TAX % LANDING RATE

KINLEY SODA 600M 12.5 13.2

COCA COLA 1.5 12.5 37.4

THUMS UP 300 12.5 17.6

SPRITE 330 12.5 17.6

THUMS UP 1.5 12.5 37.4

SPRITE 1.5 12.5 37.4

FANTA 1.5 12.5 37.4

FANTA 600 12.5 19.35

MAAZA1.2 4 42.2

MAAZA600 4 24.64

FANTA APPLE 600 12.5 19.35

The Terms & Conditions are :--

• The freight expenses are to be borne by the vendor.

• The freight expenses may be borne by the PRIL if there is any contract.

• The Insurance of the goods are to be borne by the PRIL.

• The Invoices are to be raised by the PT/ CTL/ BB/ FB etc.

• Other conditions are subject to the jurisdiction of Mumbai.

Page 41
CUSTOMERS OF MODERN TRADE

There are different types of customers existing in the market. There tastes & preferences
are also different. so with this view the company has launched different types of products
to match their customers tastes & preferences e.g.---

1) Coca Cola is such a brand with the help of which the company is targeting the whole
family. So in their Advertisements they every time shows in any party or when some
friends gather they would like to choose the particular product.

2) Thumbs Up is such a product by which the company is targeting the youth

generation who likes adventures & thrills. So they have chosen Mr. Akshay Kumar
as he is famous for his stunts & adventures.

3) Again Sprite is such a product by which they are targeting the straight- forward
youths, so their punch line is “ Sidhi Baat No Bakwas “ .

4) Limka is the product by which they are targeting the simple people who wants some
moments of leisure.

5) By Fanta the co. is attracting especially the ladies section of the society. So the
brand ambassador the product is Jane Desuza

6) And with Maaza & Milk maid Pulpy orange they are targeting the people from all
the ages who are fruit specially Mango & Orange-lovers.

7) And last but not the least with Kinley the mineral water & soda they try to get an
impact of purity with the punch line “ Boond Boond Mein Biswas “.

Page 42
India has one of the largest youth populations in the world, it’s key for every marketer to
crack this market. A new Coca-Cola India commissioned research study titled ‘The Truth
about Youth: Exploding the Youth Homogeneity Myth’ is a good descriptor of young
people’s consumption styles today. Some of the Key Highlights of the Research are:

1. The motto of the Indian youth is I want it and I want it Now. An impatient lot in
pursuit of all the good things in life but equipped with very narrow attention
spans, they move from one exhilarating experience to another without any
certainty of returning or lasting loyalties.
2. Young adults are focused on short-term obsessions rather than longterm
unwavering passion. So what does it mean for marketing men? “The key and
challenge is to stay with a brand position long enough to make an impact but not
too long because then you might have to deal with the threat of losing the group,”.
3. While in metros the youth focus is money, in smaller towns it’s fame and the
aspiration to be a local hero – Bunty & Babli fascination.
4. While small town boys and girls are less discerning and possess high loyalty, in
the metros the young and restless are a bit more critical.
5. Growing intensity for liberation among young girls both in small and big towns
— an insight that Srinivas Murthy, head, coloured drinks, Coca-Cola India, says
was used to develop advertising for Fanta’s latest apple flavoured variant.

We can divide the customers in some more groups, which are:--

• Type 1:-- Some peoples come to visit the outlets to purchase the necessary

Products of the day to day life. The soft-drinks are a part of every ones

life now a days , so they purchase the coke products.

• Type 2 :-- Again some of the people comes to the outlet without any purpose, so

they purchase the coke products and enjoy the visit.

• Type 3 :-- Some of the people are influenced by their younger ones and purchase

the products.

• Type 4 :-- Some of the people are influenced by the warm display and purchase

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 the product.

• Type 5 :-- Some of the people are yet also influenced by the offers given in the

Modern trades, so they purchase the products.

COMPETITORS: ----

In the soft-drinks line PepsiCo. India & Parley Agro are the main
competitors of the Coca –Cola Company.

They have alternative products as well as the Coca Cola have.For example---

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 Thumps Up Vs Pepsi

Limka Vs Nimbus

Fanta Vs Mirinda

Maaza Vs Slice & Fruity

Sprite Vs 7Th Up & Mountain Dew

VISI- COOLER STANDARDS

As we know the Modern Trades are huge outlets who deals in huge quantity, so we
can classify them as the diamond outlets as there dealings are more than 800 cases a
year.

As per availability standard

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200ml, 250ml, 300ml
Xpress (350ml )
Mobile (500ml, 600 ml)
Fridge pack (1 L,1.2L,1.25L)
Party Pack (1.5 L,2L,2.25L)
Water (500ml, 1L )
SHELF ORDER STANDARD
JUICE RGB
JUICE MOBILE
WATER
3 SHELF NCB COOLER
Coke, at least 3 types of other brands
+Maaza
Sprite + at least 2 types of other
brands
Coke + at least 3 types of other
brands +Maaza+MMPO
Coke + at least 3 types of other
brands +Maaza+MMPO
Coke + at least 3 types of other
brands
Kineley
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RGB

RGB

XPRESS (FULL
SHELF ) OR
MOBILE (FULL
SHELF )
MOBILE RGB

FRIDGE PACK/ RGB

PARTY PACK+
WATER XPRESS (FULL
SHELF ) OR
MOBILE (FULL
SHELF )
MOBILE

FRIDGE PACK/
PARTY PACK+
WATER

5 SHELF COOLER 5 SHELF DOUBLE DOOR COOLER

ACTIVATION STANDARD

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 Essential Activation Standard:

• 3 Tier Display Rack with Header--- It should be pure and at least 50 % charged
• Shelf Display--- Other then rack, 6facing of any PET displayed together and
visible. It can be a cut case display as well.
• Price communication
• Visi- cooler in prime position
• OBM/ Drinking shot communication.

QUESTIONS ASKED TO THE CONSUMERS

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Page 49
Page 50
BATTLE OF THE BRANDS

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 QUESTIONS ASKED TO THE OUTLETS

1. WHICH COKE PRODUCT SOLD MORE IN BIG BAZAR?

ANSWER ACCORDING TO THE 16.06.2009 PO OF BIG BAZAR AND

20.06.2009 PO OF PANTALOON

2. SO FOR WHICH REASONS THE JUICY PRODUCT

NAMED MAAZA SOLD MORE?

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ANSWER ACCORDING TO 20 PEOPLE FROM FOOD BAZAR FROM EACH
OUTLET….

TAST PRIC PREFEREN OFFE CONVENIEN WARM

E E CES RS CES DISPL
AY

NO. OF 7 5 3 1 3 1
PEOPLE

PERCENTA 35 25 15 5 15 5
GE

3. DO YOU THINK THE SERVICES PROVIDED BY THE

COCA COLA ARE GOOD?

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 4. IN WHICH SECTORS THEY HAVE TO MAKE PROGRESS
?

ANSWER: In this question the respondents were given ten marks to distribute
them in the given points (i.e.—DISTRIBUTION, MORE OFFRES, MARKETING,
and RELATIONSHIP)

This question was asked to those 8 respondents who were not satisfied with services
of COCA COLA.

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 5. WHICH BRAND OF SOFT- DRINKS GIVES YOU MORE
PROFIT ?

ANSWER:-- They doesn’t want to disclose the actual figure of profit as it is

confidential. So the graph has been drawn according to the mostly sold products.

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6. DO YOU THINK THAT THE DISPLAY CAN IMPROVE
THE SALES?

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 7. WHAT TYPE OF OFFERS OR HELP DO YOU WANT
FROM COCA COLA ?

This question was asked to the 20 respondents chosen from the Modern Trade
where they have to give marks out of 10 to those points mentioned above.

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Learning in the Executive Training

I had learnt lots of things in my Executive training in the fame-holder company COCA
COLA

• I came to know about the style of the corporate life which is very busy and having
a little time to spare

• I came to know about the working environment of the corporate life.

• I came to know about the marketing tactics of the company.

• I came to know about the company’s supply and distribution channel.

• I came to know about the customers views on the different products of the
company.

• I came to know about the area where the company is lacking behind which is
mainly its supply and distribution channel.

• I came to know about the market situation and different strategies of the company
to retain its customers at the same time making new customers.

• Again I was taken to the COCA COLA plant situated at Barnihat, which helped
me a lot to understand the making process of the soft-drinks and the system how
the soft drinks come to the market.

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SUGESSION
• In the mid of summer there is a huge demand for the Coke products & the company
is unable to satisfy the whole demand of the customer. So they have to give more
stress on their distribution channel.

• Sometimes , in the bye-lane areas the sales- persons don’t want to go for their
inconvenience, for that those outlets which are at the bye-lanes don’t get the
products which led’s a bad relationship between the company and the customers.
So it is important for the company person or the respective Market Developers to
visit each outlet under him and to ensure that they are getting the sufficient
products or not.

COMPANY FEEDBACK

Working in COCA COLA is an experience I shall cherish for life. I have been learning a
lot and this shall help me in all my future endeavors. The work environment at COCA
COLA is warm and friendly and it is almost becoming my second home.

COCA COLA had become popular and that is why it has been crowned as the fastest
growing trade. Moreover my surveys also prove that the masses are more inclined towards
COCA COLA. COCA COLA”s USP is that it targets all ranges of society. I strongly
believe that if COCA COLA keeps moving in this direction its progress will grow even
more.

CONCLUSION

Coca Cola holds nearly 75 percentage of the market share in Guwahati.

The company is far ahead of with regard to the competition with its
different competitors mainly Pepsi. Coca cola has not only shakes up
the Indian carbonated drinks market, and given consumers the pleasure
of world-class drinks to fill up their hydration, refreshment & nutrition

59
needs but has also been instrumental in giving an exponential growth to
job opportunities. In Guwahati it has managed to have a good
distribution system. Although the area of operations is much more than
the number of distributors in the city but with the help of Supply chain
management system it has shown a good distribution network among
its customers. SCM has a great effect in fulfilling the demand of their
customers when the overall demand is high in the market, especially in
the summer.

The Project and the OJT carried out during the course of the SIP was indeed an eye-opener
to me in more than one way. This project and the OJT assigned helped me to increase the
current understanding of the industry in general and analyze customers taste and preference
of products. The study helped me to cast light on the much unexamined area of industry.
The study also revealed that the COCA COLA is the most identified brand by the soft-
drinkers in the city when compared to its competitors. The Project is an attempt to study
the factors that influence the listeners. The main results of the study indicate the following.

• The factors underlying the choice of the customers are made by the good taste less
prices.
• Some of the people drink a particular brand for different reasons like taste, price,
character, brand ambassador etc.
• The most interesting thing that I came across my survey was that generally most
people belonging to middle aged can’t identify products accurately, they identify
the products by its flavor or colors.
. In most of the cases the general people doesn’t know which are the products of which
company, they mixed COCA COLA’s products with the products of its competitors.

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 BIBLIOGRAPHY

R.C.Agarwal. Marketing Management. Third Edition. Agra: Published by: Lakshmi Narain
Agarwal, Hospital Road, Agra.

Study Material of Marketing Management. Published by ICFAI University Press.

Marketing Management – philip kotler

Website

 www.google.com
 www.ciaadvertising.org
 www.cocacolaindia.com

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