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RESEARCH PROJECT REPORT

ON

A STUDY OF EMPLOYEES AWARENESS & COMPLIANCE


TOWARDS VARIOUS SAFETY MEASURE(A CASE OF
BRINDAVAN BEVERAGES
SESSION :( 2015-2016)

Submitted in partial fulfillment of the degree of


MASTER OF BUSINESS ADMINISTRATION

Dr A.P.J. ABDUL KALAM UNIVERSITY


SUBMITTED TO:
MR..GAURAV SAXENA

SUBMITTED BY:
DEEKSHA KHANNA
MBA:II YEAR

FUTURE INSTITUTE OF MANAGEMENT


AND TECHNOLOGY,BAREILLY

Submitted to:

Faculty Guide

Company Guide

Mrs. Durga Taksande

Mrs. Swapnili Tiwari

S.I.B.M

Assistant Finance

Vadgaon

Manager

Pune

Hindustan Coca Cola


Beverages Pvt. Ltd.
Kanpur

Table of Contents
1. Introduction
1.1 Objectives
1.1.1 Primary Objectives....
1.1.2 Secondary Objectives
1.2 Methodology..
1.2.1 Understanding Phase
1.2.2 Analysis Phase.
1.2.3 Interpretation Phase.
2. Hindustan Coca-cola Beverages Pvt. Ltd.
2.1 Company Profile....
2.2 Competitor Analysis
2.3 Current Market Situation...
2.4 Factors Affecting Business. .................
2.5 Products and Pack Sizes...
3. Claim Process
3.1 Introduction
3.2 Importance of claims
3.3 Claim strategy
3.4 Working of claims
4. Freight Payable..........
5. Coke Penetration in Rural Market..
6. Advertisement
7. Vision & Leadership......................................................................................
8. Manufacturing Process.....

8.1 Water Treatment.....


8.2 Syrup Preparation...........
8.3 Container Washing.
8.4 Mixing Proportioning..
8.5 Filling & Crowning..
8.6 Final Inspection........

8.7 Managing the Waste Water.....


8.8 Market & Customers ....
8.9 Suppliers and Other Business Partners....
8.10 Employees, Plants & Machinery......

9. SWOT Analysis.
10. Management Style..

11. Annexure
12. Objectives of the Study
13. Limitations of the Study ..
14. References...

1. INTRODUCTION
With the development of world and human being, the taste, need and the attitude of
human being also changes. India is one of the common market in the world with a population
of more than one billion. Soft drink is a popular common product which is generally
purchased by consumers for quenching their thirst in summer and also to have cooling
refreshment. As far as the market of soft drinks is concerned, it is facing cut throat
competition from the larger number of soft drinks available in the market. Different brands
are available in every segment of flavors, but the attitudes of the consumers differ from each
other due to several factors. Every company tries to increase their market share and their sales
volume. Discounting system followed by the companies proved to be an essential factor to
boost up the purchases made by the retailers. The companies try to attract the retailers to
purchase more by providing some schemes or incentives or cash/card discount. If more
discount or any other incentive scheme is given to the outlets, they make purchases to avail
that offer. Therefore, it is essential for any company to have an efficient and effective
discounting system.
Distribution is the spine of any FMCG company. The main function of a retailer is to
bridge the gap between the supplier and the customer. The central focus of distribution is to
increase the efficiency of time, place, and delivery utility. For any FMCG product it is
essential to have a good distribution network which should be better than that of its
competitors.

Distribution is the key area for any FMCG business. For a smooth distribution
network, it is essential to keep the retail outlets satisfied which in turn mainly depend upon
the profitability. Their profitability is checked by keeping a satisfied profit margin for them.
Apart from that, the company also provides discount on purchase of different pack sizes to
some HVOs which in turn increases their profit margin. Sometimes the company also
provides incentives to the outlets which make frequent and high purchases. To meet stiff and
challenging competition from some of the other brands, it is essential for the company to
have an effective and efficient distribution network. Therefore, the company tries to keep the
outlets satisfied by offering discounts and some other incentive schemes from time to time.

1.1 OBJECTIVES
1.1.1 Primary Objectives

To find out any kind of misrepresentation being done by salesmen or by distributors


related to daily sales by making out their own personal benefits from the discounting
system.

To compare the discounts given to HVOs on the basis of their sales volume.

To make proposals to minimize the revenue leakages and this will help the company
in saving its funds.

1.1.2 Secondary Objectives

To study the discounting policies of the company.

To know about the different pack sizes being sold by the company.

To find out the outlets where the company is offering high discounts.

To analyze the discount rates offered to HVOs.

To find out whether they are actually getting the products at the pre - decided
discounted price or not.

1.2 METHODOLOGY

1.2.1 Understanding Phase: This being the primary phase of the study involves the
understanding of the basic factors that affect discounting. In FMCG businesses, there are
many factors that affect the discounting policies directly or indirectly and it is essential to
have the knowledge of all these factors to understand the discounting system. Every
company has their own terms and ways of doing things. It is essential to have an in depth
knowledge about everything to understand different prospective of business. This phase
includes three stages:

Stage1: To have the knowledge of all the factors that affects the discount to be
given to different HVOs. This includes factors like sales, competitors
strategy, negotiation, etc.

Stage2: To collect the data of sales and discounts of different HVOs. This
includes the collection of data of sales and discounts for the year 2006 and
2007 of different HVOs being served by the company. It includes direct as
well as indirect HVOs.

Stage3: This stage involves the short listing of the HVOs for personal visits
and for making inter comparison of the discounts of the HVOs on the basis of
their sales volume.

1.2.2 Analysis phase: After being familiar with the basics of the business, the next part
of the project work includes personal market visits and visits through route rides to detect
any kind of wrong practices being adopted by the salesmen and the distributors to fetch
out their own personal benefits from the discounting system. It also includes analyzing
the discounts given to the short listed HVOs and to make a comparative study of the
discount and sales volume of the HVOs.

1.2.3 Interpretation Phase:- After carefully analyzing the discounts of various HVOs,
the next part involves finding out the variations where some HVOs are getting higher
discounts on different pack sizes as compared to other short listed HVOs and
recommendations have to be made as to how the leakages can be reduced and a fair
discounting system can be maintained. The basic aim of this stage is to give suggestions
that can work as decision making information which will be solely for the use of the
organization.

2. HINDUSTAN COCA-COLA BEVERAGES PVT. LTD.

1 COMPANY PROFILE
Coca-Cola (also known as Coke, a name that was trademarked by The Coca-Cola
Company after it was discovered many people called it by that particular name) is a very
popular cola (a carbonated soft drink) sold in stores, restaurants and vending machines in
more than 200 countries. It is produced by the Coca-Cola Company (NYSE: KO), which is
also often referred to as simply Coca-Cola or Coke. Coke is one of the worlds most
recognizable and widely sold commercial brands; its major rival is Pepsi.
Coke was originally intended as a patent medicine when it was invented in the late
19th century, Coca-Cola 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. Although faced with critiques of its health effects and various allegations of
wrongdoing by the company, Coca-Cola has remained a popular soft drink to the present day
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 thanks to a belief that carbonated water was good for
the health. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8,
1886, and for the first eight months only nine drinks were sold each day. Coca-Cola was sold
in bottles for the first time on March 12, 1894, and cans of Coke first appeared in 1955. By
1888, three versions of Coca-Cola - sold by three separate businesses were on the market.
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. The company

actually produces concentrate for Coca-Cola, which is then sold to various Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially-exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise CocaCola in cans and bottles to retail stores and vending machines. Such bottlers include CocaCola Enterprises, which is the single largest Coca-Cola bottler in North America and Europe.
The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and
food service distributors.
The Coca-Cola Company has on occasion introduced other cola drinks under the
Coke brand name. The most famous of these is Diet Coke, which has become a major diet
cola but others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola
Company owns and markets other soft drinks that do not carry the Coca-Cola branding, such
as Sprite, Fanta, and others. The actual production and distribution of Coca-Cola follows a
franchising model. The Coca-Cola Company only produces a syrup concentrate, which it
sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more
geographical areas. The bottlers produce the final drink by mixing the syrup with filtered
water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers
then sell and distribute to retail stores, vending machines, restaurants and food service
distributors. The bottlers are normally also responsible for all advertisement and other sales
initiatives within their areas.
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some
localities. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink
Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. The products
of the company reach consumers and customers around the world through a vast distribution

network made up of local bottling companies. These bottlers are located around the world,
and most are independent businesses. Using syrups, concentrates and beverage bases
produced by the Coca-Cola Company, their global bottling system packages and markets
products, then distributes them to more than 14 million retail outlets worldwide. The CocaCola Company is committed to assisting its bottlers with the functions of an efficient bottling
operation and initiating quality systems to ensure the highest quality products for their
consumers.
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. The most valuable assets happen to be the
trademarks they possess. For Coca-Cola, the most drunk soft drink on earth is one of the
world s best-known and most admired trademarks, recognized by more than 90 percent of the
world s population. Interestingly, the world that is touched by the cherished drinks for every
moment, the Coca-Cola trademarks happen not only to be their most valuable assets but of
the entire earth. The business system of the Company in India directly employs
approximately 6,000 people, and indirectly creates employment for many more in related
industries through our vast procurement, supply and distribution system. On the distribution
front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of
Indian cities, ensure availability of our brands in every nook and corner of the country. The
term soft drink originally applied to carbonated drinks made from concentrates, although it
now commonly refers to almost any cold drink that does not contain alcohol.

Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US


based Coca-Cola Company. The company-owned Bottling arm of the Indian Operations,
Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and
distribution of beverages across the country. Coca-Cola India is among the countrys top
international investors, having invested more than US$ 1 billion in India within a decade of
its presence and further pledged another US$ 100 million in 2003 for its operations. It is the
worlds largest selling soft drink since 1886. The Coca-Cola Company returned to India in
1993 after a gap of 16 years giving new Thums up to the Indian Soft Drink Market and took
over the ownership of the nation's top soft-drink brands and bottling network. The vast Indian
operations comprises 25 wholly company owned bottling operations and another 24
franchisee owned bottling operations and a network of 21 contract packers also manufactures
a range of products for the Company.
2.2 GENERATIONS IN COCA COLA

2.2.1: 1886-1892

Atlanta beginning

It was 1886, and in New York Harbor, workers were constructing the Statue of
Liberty. Eight hundred miles away, another great American symbol was about to be
unveiled. Like many people who change history, John Pemberton, an Atlanta
pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant,
caramel-colored liquid and, when it was done, he carried it a few doors down to
Jacobs' Pharmacy. Here, the mixture was combined with carbonated water and
sampled by customers who all agreed -- this new drink was something special. So
Jacobs' Pharmacy put it on sale for five cents a glass.

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola, and wrote
it out in his distinct script. To this day, Coca-Cola is written the same way. In the first
year, Pemberton sold just 9 glasses of Coca-Cola a day. A century later, The CocaCola Company has produced more than 10 billion gallons of syrup. Unfortunately for
Pemberton, he died in 1888 without realizing the success of the beverage he had
created. Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs
Candler secured rights to the business for a total of about $2,300. Candler would
become the Company's first president, and the first to bring real vision to the business
and the brand.
2.2.2: 1893-1904

Beyond Atlanta

Coca cola hires first celebrity spoke person music hall performer Hilda Clark
Asa G. Candler, a natural born salesman, transformed Coca-Cola from an invention
into a business. He knew there were thirsty people out there, and Candler found
brilliant and innovative ways to introduce them to this exciting new refreshment. He
gave away coupons for complimentary first tastes of Coca-Cola, and outfitted
distributing pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the aggressive
promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and
Los Angeles.

Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put
Coca-Cola in bottles. He sent 12 of them to Candler, who responded without

enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize


then that the future of Coca-Cola would be with portable, bottled beverages customers
could take anywhere. He still didn't realize it five years later, when, in 1899, two
Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead, secured
exclusive rights from Candler to bottle and sell the beverage -- for the sum of only
one dollar.
2.2.3: 1905-1918

Safeguarding the brand

Coca cola enjoyed in 8 countries worldwide.To combat copycats coca cola


develops unique bottle
Imitation may be the sincerest form of flattery, but The Coca-Cola Company was
none too pleased about the proliferation of copycat beverages taking advantage of its
success. This was a great product, and a great brand. Both needed to be protected.
Advertising focused on the authenticity of Coca-Cola, urging consumers to "Demand
the genuine" and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure people they
were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute,
Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916,
they began manufacturing the famous contour bottle. The contour bottle, which
remains the signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could identify the
genuine article. As the country roared into the new century, The Coca-Cola Company
grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other

countries and U.S. territories. In 1900, there were two bottlers of Coca-Cola; by
1920, there would be about 1,000.
2.2.4 1919-1940

The woodruff legacy

Coca cola enjoyed in 53 countries world wide. It introduced 6 packs.


In 1925 6000000 drinks per day.
Perhaps no person had more impact on The Coca-Cola Company than Robert
Woodruff. In 1923, four years after his father Ernest purchased the Company from
Asa Candler, Woodruff became the Company president. While Candler had
introduced the U.S. to Coca-Cola, Woodruff would spend more than 60 years as
Company leader introducing the beverage to the world beyond. Woodruff was a
marketing genius who saw opportunities for expansion everywhere. He led the
expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the Olympic
Games for the first time when Coca-Cola traveled with the U.S. team to the 1928
Amsterdam Olympics. Woodruff pushed development and distribution of the sixpack, the open top cooler, and many other innovations that made it easier for people to
drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge
success, but a big part of people's lives.

The war and its legacy

Coca cola enjoyed in 120 countries world wide. Introducing Coke. In 1961
Sprite is introduced. 1963 Tab Companys first diet soft drink is introduced
In 1941,
America entered World War II. Thousands of men and women were sent overseas.
The country, and Coca-Cola, rallied behind them. Woodruff ordered that "every man
in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it
costs the Company." In 1943, General Dwight D. Eisenhower sent an urgent
cablegram to Coca-Cola, requesting shipment of materials for 10 bottling plants.
During the war, many people enjoyed their first taste of the beverage, and when peace
finally came, the foundations were laid for Coca-Cola to do business overseas.
Woodruffs vision that Coca-Cola be placed within "arm's reach of desire," was
coming true -- from the mid-1940s until 1960, the number of countries with bottling
operations nearly doubled. Post-war America was alive with optimism and prosperity.
Coca-Cola was part of a fun, carefree American lifestyle, and his imagery of its
advertising -- happy couples at the drive-in, carefree moms driving big yellow
convertibles -- reflected the spirit of the times.

A world of customers

Coca cola enjoyed in 163 countries world wide. It introduced can in 1960. In
1981 Roberto c. Goizueta became chairman and CEO of the coca cola company
After 70 years of success with one brand, Coca-Cola, the Company decided to
expand with new flavors: Fanta, originally developed in the 1940s and introduced in
the 1950s; Sprite followed in 1961, with TAB in 1963 and Fresca in 1966. In
1960, The Coca-Cola Company acquired The Minute Maid Company, adding an
entirely new line of business -- juices -- to the Company. The Company's presence
worldwide was growing rapidly, and year after year, Coca-Cola found a home in more
and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more.
Advertising for Coca-Cola, always an important and exciting part of its business,
really came into its own in the 1970s, and reflected a brand connected with fun,
friends and good times. The international appeal of Coca-Cola was embodied by a
1971 commercial, where a group of young people from all over the world gathered on
a hilltop in Italy to sing "I'd Like to Buy the World a Coke." In 1978, The Coca-Cola
Company was selected as the only Company allowed to sell packaged cold drinks in
the People's Republic of China.

2.2.7: 1982-1989

Diet coke and new coke

Coca cola enjoyed in 165 countries world wide. In 1982 diet coke is
introduced.
The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of
much change and innovation at The Coca-Cola Company. In 1981, Roberto C.
Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola
Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the
Company with a strategy he called "intelligent risk taking." Among his bold moves
was organizing the numerous U.S. bottling operations into a new public company,
Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, the very first
extension of the Coca-Cola trademark; within two years, it had become the top lowcalorie drink in the world, second in success only to Coca-Cola. One of Goizueta's
other initiatives, in 1985, was the release of a new taste for Coca-Cola, the first
change in formulation in 99 years. In taste tests, people loved the new formula,
commonly called new Coke. In the real world, they had a deep emotional
attachment to the original, and they begged and pleaded to get it back. Critics called it
the biggest marketing blunder ever. But the Company listened, and the original
formula was returned to the market as Coca-Cola classic, and the product began to
increase its lead over the competition -- a lead that continues to this day.

2.2.8: 1990-1999

New markets and brands

In 1993 pet bottkles are introduced. Coca cola enjoyed in 200 countries world
wide.
The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby
World Cup and the National Basketball Association. Coca-Cola classic became the
Official Soft Drink of NASCAR racing, connecting the brand with one of the world's
fastest growing and most popular spectator sports. And 1993 saw the introduction of
the popular "Always Coca-Cola" advertising campaign, and the world met the lovable
Coca-Cola Polar Bear for the first time. New markets opened up as Coca-Cola
products were sold in East Germany in 1990 and returned to India in 1993. New
beverages joined the Company's line-up, including Powerade sports drink, Qoo
children's fruit drink and Dasani bottled water. The Company's family of brands
further expanded through acquisitions, including Limca, Maaza and Thums Up
in India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury
Schweppes' beverage brands in more than 120 countries around the world. By 1997,
the Company already sold 1 billion servings of its products every day, yet knew that
opportunity for growth was still around every corner.

2.2.9: 2000 and Now

Coca cola now

In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta


pharmacy. Now well into its second century, the Company's goal is to provide magic
every time someone drinks one of its more than 400 brands. Coca-Cola has fans from
Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and
Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. CocaCola is committed to local markets, paying attention to what people from different
cultures and backgrounds like to drink, and where and how they want to drink it. With
its bottling partners, the Company reaches out to the local communities it serves,
believing that Coca-Cola exists to benefit and refresh everyone it touches.From the
early beginnings when just nine drinks a day were served, Coca-Cola has grown to the
worlds most ubiquitous brand, with more than 1.4 billion beverage servings sold each
day. When people choose to reach for one of The Coca-Cola Company brands, the
Company wants that choice to be exciting and satisfying, every single time.

2.3 COMPETITOR ANALYSIS

Indian soft drinks market is predominantly controlled by two major multinationals


namely Coca- Cola and Pepsi, which have carefully stifled out the local competition here in
India. Penetrating tough Indian psychology and making their products feel accepted was the
toughest challenge in front of them. A brief overview of the soft drinks giant biggest
competitor will help in gaining a better insight of the soft drinks market in totality.

2.4 CURRENT MARKET POSITION

There has been much controversy and debate on the market share standings between
the two companies in the Indian subcontinent and a substantial and a consolidated figure has
been unavailable for reference. This is mainly because both companies had approached
different market research companies for making a study about the market share standings.
Pepsi Co had approached IMRB while Coca- Cola had entrusted this responsibility on ORG.
According to the survey done by IMRB Pepsis market share was found to have increased
from 47% to 49% while according to the study conducted by ORG Coca- Colas market share
was claimed to be 59%.

2.5 FACTORS AFFECTING BUSINESS

Seasonality: Seasonality is one of the most important factors that affect the soft drink
business. Seasonality is primarily influenced either by the weather, or by holidays and
religious festivals. Within the Group, soft drink business has different seasonal cycles
throughout the year.

Service frequency: This is another factor that affects the business. Service frequency
is the time gap between visiting a particular outlet again. Service frequency directly
affects the rotation time which in turn affects the value of business.

Demand pattern for the market: Every product has a different demand pattern and
affects the business.

Price of the product: Price of the soft drinks also affects the business. Due to perfect
competition in soft drink market, price of a product plays a major role in business.

Disposable Income: Disposable Income of the consumers also affects the business of
the soft drink players. A high disposable income of the consumers ensures a high
demand for the products in the market.

Demographic Profile: Demographic profile of consumer also affects the business and
needs to be considered.

Competitors Policy: The policies of the competitors also affect the working of the
business of other companies.

Government Policies: The government policies related to taxation or political


interference also affect the business of the players in the soft drink industry.

2.6 PRODUCTS AND PACK SIZES:

Coca-cola is the world's favorite drink. It is the world's most valuable brand and
the most recognizable word across the world. 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. Over the past ten years it has captured

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

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.

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".
Fanta is perceived as a fun youth brand and 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.

Lime n' lemoni Limca , the drink that can cast a tangy refreshing spell on
anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of
consumers for over 3 decades. The brand has been displaying healthy volume growths year
on year and Limca continues to be the leading flavor soft drink in the country.

The sharp fizz and lemoni bite combined with the single minded positioning of the
brand as the ultimate refresher has continuously strengthened the brand franchise. Limca
energizes, refreshes and transforms. Dive into the zingy refreshment of Limca and walk away
a new person.

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 refresh hingtaste encourages the today's youth to trust their
instincts, influence them to be true to who they are and to obey their thirst.

Maaza was launched in 1976. It is a drink which offered the same real taste of fruit
juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola
India and it currently dominates the fruit drink market.

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"

Kinley Water, a

thirst

quencher

that

refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses,
purifies, transforms. Water, the most basic need of life, the very sustenance of life, a
celebration of life itself.
The importance of water can never be understated. Particularly in a nation such as
India where water governs the lives of the millions, be it as part of everyday rituals or as the
monsoon which gives life to the sub-continent. Kinley water understands the importance and
value of this life giving force. Kinley water thus promises water that is as pure as it is meant
to be. Water you can trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the 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. Because the company believes that right to pure,
safe drinking water is fundamental. Its a universal need which cannot be left to chance.

The below table shows the brands and products of different pack sizes being sold by
the company in Kanpur region:

BRAND NAME GLASS


Coca-cola
200 ml and

TETRA PACK
-

300ml
Thums up

200 ml and

200 ml and

200 ml and
300 ml

FOUNTAIN
Various sizes

350 ml, 600 ml,

330 ml

Various sizes

330 ml

Various sizes

330 ml

Various sizes

1.25L and 2L
-

300ml
Limca

CAN
330 ml

and 2l

300ml
Fanta

PET
600 ml, 1.25l

600 ml, 1.25L


and 2L

600 ml, 1.25L


and 2L

Sprite

200 ml and

300 ml
Maaza

200 ml

Diet Coke
Kinley Water

350 ml, 600 ml,

330 ml

Various sizes

1.25L and 2L
200ml

600 ml, 1.2L

500 ml, 1L

330 ml
-

The different pack sizes on which discount is given by the company is:

200 ml RGB1 CSD2

250 ml juice3

300 ml RGB CSD

600 ml Pet4 CSD

1200 ml Pet Juice

2000 ml Pet CSD

330 ml Can CSD

200 ml Tetra Pack Juice

RGB Returnable Glass Bottles

CSD Concentrated Soft Drink

Juice Maaza

Pet

Plastic bottle

The below table shows the number of bottles in each case and brands available in
different pack sizes.

Pack Sizes
200 ml RGB
250 ml RGB
300 ml RGB

No. of bottles per


case
24
24
24

Brands
Coke, Fanta, Limca, Thums up and Sprite
Maaza and Minute Maid Pulpy Orange
Coke, Fanta, Limca, Thums up, Kinley Soda

24

and Sprite
Coke, Fanta, Limca, Thums up, Sprite and

400 ml
500 ml Pet
600 ml Pet

24
24
24

Diet Coke
Minute Maid Pulpy Orange
Diet Coke, Kinley Soda and Kinley water
Coke, Fanta, Limca, Thums up, Sprite and

200 ml Tetra P
1 Ltr
1.2 ltr Pet
2 ltr Pet
2.25 ltr Pet

27
12
12
9

330 ml Can

Maaza
Maaza
Kinley Water
Maaza and Minute Maid Pulpy Orange
Coke, Fanta, Limca, Thums up and Sprite
Coke, Thums up and Sprite

3. CLAIMS
3.1 INTRODUCTION:
Responsible for building and maintaining relationships with distributors in order to
maximize sales and ensure proper execution of pricing and promotional programs. Claims are
those which are effective to increase the sale of company. The claims are

the promotional

schemes given by the company to the distributors for the retailer in order to increase the sale.
The distributors have some special agreements with company. There are pre decided sale
volume agreement between company and distributors. They have monopoly outlets to sale the
HCCBPLs products. They are not supposed to sale any other brand besides coca cola.

3.2 AN IMPORTANCE OF CLAIMS


The claim is the amount which is to be reimbursed to the distributor on the scheme
run by him in the market. These are the promotional scheme given to the distributor to give it
to the retailer in order to increase the sales of the company. In order to earn more and more by
the help of extra sale these scheme are very helpful and in order to survive from the
competitors these schemes carry much importance. In this series of articles, I will highlight
the importance and steps of Claims, an approach to segmentation and categorization of
accounts.

3.3 CLAIMS STRATEGY


The recommended approach is suggested below:

Step 1: Group our distributors according to the volume they do in the market
and decide the budget according to the volume done by them and make an
agreement with them.

Step 2: Include contribution margins and direct profit or any other financial
matrices that make sense for our business.

Step 3: Identifying the profitable monopoly outlets of the distributors from


their prospective and make an agreement with based on proposed budget to the
ASM and SE and the understanding of the distributor.
Step 4: After the agreement is tied the MER is opened of each pack i.e 600
ml, 200ml, 1.25l, 2l and IL water.

3.4 WORKING OF CLAIM

Step 1: Company does 75 percent of its business by the help of distributors and the
rest is done by the Direct Route Operation (DRO). In DRO what ever sale is made it
is of cash not on credit so any sale made the discount is given at the spot to the retailer
and a credit note is prepared and the amount is credited to the retailers account. But in
case of Indirect selling sale is done to by the help of distributors. The are of operation
is divided into various territories and each territory is appointed an Area Sales
Manager (ASM), Senior Executive (SE) and Route To Market Executive (RTM). Each
territory is appointed a budget based on the volume done by the area and ASM
decides what budget is to be given to the distributors based on the volume done by
them.

Step 2: once the budget is decided by the ASM the MER is blocked for each an every
distributor. The MER is blocked in every fortnight i.e. in every 15 days. Claims are
divided into various buckets, and there are two buckets in a month and 24 buckets in a
year. The schemes are given of two types one is bottle scheme and other is the
monopoly schemes. In bottle scheme the distributor gives free bottles on sale of 1
case or crate say scheme of 2 bottle of 200 ml on sale of 1 case of 200 ml. and in the
monopoly a fixed amount is given on sale of 1 case of a particular pack say 200 ml,
600ml, 1.25L, 2 and many more. In monopoly the distributor claim on of the free
bottle given and in monopoly the claim is made on the discount given on sale of 1
case of any pack.

Step 3: odd buckets contain only bottle scheme claims i.e. 1, 3,5,7,9,11,13,15 etc and
even contain both i.e. 2,4,6,8,10,12,14 etc, because the monopoly scheme is for a
month and the bottle scheme is for a specific date or period. When the scheme is run
by the distributor in the market he is specified of the scheme by the company and also
about the period or the date. A top sheet is prepared in which the MER no is given and
the details of the scheme and the date is given. Once the scheme is given to the
retailers the distributor after the 15 of the month fills the top sheet and attach the
secondary sheet which shows the sale made or not along with the bill and send it to
the company for reimbursement.

Step 4: Then the executive in the finance team check the scheme given by verifying
the sale made in the secondary sheet. If the claim is more than the secondary sheet
then he deducts the excess amount and if the claim is equal or less then the sale then
he passes the claim amount. If the claim made is more then the MER blocked volume
then the claim is deducted and the blocked volume is passed and the rest is cut from
the claim.

Step 5: In the monopoly claim if the distributor is claiming any amount more then
the MER blocked then we have the right to pass it but till the limit i.e. not more than
the agreement volume. But we have to look after the blocked volume in that bucket
and if the claim volume is excess then we forward the volume to the net bucket say
from 8th bucket to 10th bucket

4. FREIGT PAYABLE
Freight is a major cost head of the company. Every company puts an extra effort to reduce
this head to the best possible extent in order to reduce its cost of the product. The Company
pays two types of freight which includes freight inward and freight outward

Freight inward is the amount that is paid by the company for acquiring goods like raw
material, advertising goods or for bringing finished goods in the company. Like wise the
company purchases sugar, Carbon Di Oxide for manufacturing various types of beverages in
its product portfolio.

Freight Outward is the sum that is paid by the company for delivering goods by the
transporters at the distributors outlet. The freight rates are previously determined by the
company with the help of a contract/ agreement which is made to acquire services on a yearly
basis.

The rates for various stations are negotiated and after the process of negotiation the
agreement is made or renewed for providing services. The agreement includes various terms
and conditions which is applicable from when the truck is hired for a station till the time it
does not reaches the destination.

Like one of the condition is of detention which means that the truck should be unloaded by
the distributor within 24 hours of reaching the distributors outlet if the truck is detained for
more than 24 hours then the company has to pay extra charges to the transporter so as to
remunerate the labour employed by the transporter.

The amount paid in lieu of detention depends upon the load size the truck is taking to the
distributors outlet. Likewise if the load size of 300 350 cases (crates) the amount of
detention is Rs.300 for the first three days and Rs. 400 there onwards. If the load size is of
351 600 cases then Rs. 450 for the first three days and Rs. 500 there onwards.
But the detention is not payable if the transporter writes in the invoice was detained for two
days. On the invoice the distributor gives the receiving about the detail of goods and he
writes the arrival time and departure time of the distributor. This in turn needs to be verified
by the Territory Manager who in turn clarifies with the sales executive and then only
authorizes the number of days the vehicle was detained.

The transporters bills have supporting invoices which are presented at the time when payment
claims are made. The bill gives the detail about the Good Receipt Note Number, Invoice
number, Invoice date, Name of the Distributor & station to which the vehicle was sent,
vehicle number, load size, amount as per the contract and over load charges if any.

Over load charges means that the extra load than the actual capacity of the vehicle. The
transporter uses two types of vehicle one of which is DCM Toyota and other one is the
normal size of the truck. The maximum load that the DCM can take is 350 cases and the
maximum of 550 cases for the other one. Anything above that would be considered for both
as overload and the company has to pay the overload charges.

Club load means if one vehicle at a time is taking goods to two stations. In this case of the
company has to pay Rs. 400 for extra station and the freight rate will be applicable of the
station whose fright rate is more amongst the two.

The part which takes the most attention while analyzing the freight bills of the company is
when the transporter gives the bills it has the supporting invoices along with it which one by
one is picked up. The analysis part is of carefully matching the goods receipt note number,
invoice number, invoice date, the station to which the goods have been invoiced, the quantity
as stated on the bill.

After this the invoice is seen through on which the distributor gives the receiving of filled
bottles. If the distributor writes actual quantity received as per the invoice then no deductions
are made and if the distributor writes quantity received in good condition, number of bottles
short (bottles not received), number of leakages received, number of bottles found open,
number of bursts received then it calls for deduction.

There is actually a rebate slab in the contract which tells the maximum number of leakages,
bursts, open and breakages allowed depending upon the load size. Short bottles are not
allowed and if bottles are found short then the actual amount (glass and flavour) are
deductible from the total bill amount.

Particulars

0 - 350

351 - 550

Burst/ Breakages

10

Leakage/ Open

FULLS :
Fulls mean bottles with flavors like ThumsUp, Coca-Cola, and Sprite etc If a bottle is
found short then the amount of glass and flavour is deductible as there is no rebate allowed.
Similar is in the case if a bottle is found Burst but the difference in Shortage and Burst is that
in burst some relief is allowed to the transporter whereas in case of shortage no relief is
allowed. In case of leakage or open relief is allowed but the amount deductible is only of
flavour and not of glass.

If a bottle is found short / burst then the amount deductible is Rs. 8 for the flavour and Rs. 7
for the glass i.e. 15.

In case of Cans, Pet Bottles whole amount is deductible. In some cases when the load is like
of 700 which includes 200 ml, 300 ml, 330 ml, 1.2 ltr., 2 ltr. And the distributor writes
leakages, short, open, found while unloading in all the product varieties then the rebate that
would be allowed on will be on 200 ml bottles and rest whole amount would be deductible.

EMPTY:
In case of empty the Invoice is matched with Empty Receipt Advice (ERA) that the empty
bottles that is being sent by the distributor is being received in full or not. The slab mentioned
above is also applicable in this case. But only shortage and breakage of bottles is deductible.

Sometimes fulls that are being invoiced in the name of the distributors firm turn out to be less
when they are being unloaded in crates that means the bottle as well as the crates is received
short. In this case the amount that is deductible is of Crate, Glass and Flavour. The total sum
of all this turns out to Rs. 397 for 200 ml bottles and Rs. 420. The bifurcation is like Rs. 136
for the plastic crate, Rs. 144 for the glass & Rs. 117 for the flavour.

The plastic crates are known as Cases on Loans, glass bottles are known as Returnable
glass bottles.

PERFORMA OF INVOICE OR FULLS DESPATCH ADVICE


InvoiceNumber: 0020/2009-10

Date: 14/6/09

Name of Distributor: XYZ


Vehicle Number:

Transporters Name:

S.No. Particulars

Size

Qty.

1. ThumsUp (24)

200

100

2. Limca (9)

2.0

25

3. Maaza (24)

250

75

TOTAL

200

Rate

Amount

---------

PERFORMA OF EMPTY RECEIPT ADVICE


Name :

No :

Date :
Vehicle Number :

Transporters Name :

S.No. Particulars

Size

Qty.

1. Coca-Cola(24)

300

200

2. ThumsUp(24)

200

100

3. Fanta(24)

300

75

4. Maaza(24)

250

75

TOTAL

450

Rate

Amount

-------

SELF CLAIMS:
Self claims are made by the distributor when it does not uses the company vehicle in order to
receive the goods instead of that it sends his own vehicle to the company and takes the goods
on his own risk. In this case no shortages, open bottles, burst or breakage or leakages can be
claimed.

The order that is received by the company from the distributor includes the freight and no
extra charges are made. In case of self claims the company gives the credit into the
distributors account in the tally but the total number of crates is matched.
The rate at which the self claims are settled is mutual settlement between the company and
the distributor. The rate at which the claim is settled is on a per case basis is far more than
what it actually pays to the company hired transporter while delivering the goods at the
distributors outlet.

5. COKE PENERATION IN RURAL MARKET

In urban areas, the 8 to 10 percent of total sales of coke is through Area Market Contractors
(AMC) who is equivalent to big retailers and other outlets. In the village areas .coke uses so
called distributors for the sales. A striking feature in the logistics of Coke is that the AMCs
supply material directly using trucks but in case of inaccessibility to retail outlets due to
location-constraints, supply is made through auto rickshaws also.

The truck also gives the company permanent hoarding space on their sides and backs. Also,
as the industry competition is strong dealer push at the point of purchase is an important
factor for sales. The retailer often can play manufactures against each other to obtain
favorable deals. To avoid this situation coke incorporates a high degree of standardization
with respect to the price waterfall elements (the various types of discount offered), through
there are differences in the timing. Innovation in availability is something that coke can lay
claim to. Coke introduced the pushcart.

Cok3e is busy putting in place infrastructure to hit villages with its small 200 ml bottle,
priced aggressively at Rs. 5. With 200 ml it has larger market. It is exploding this market with
low unit price packs and pushing growth in home consumption through the PET bottles.
Cokes game plan is to have high volume, low margin business. The infrastructure costs will
be high but they have to rework their other costs coke credits and discounts and bring them
down.

6.1 ADVERTISING
Advertising has played an important role in the success of products since first newspaper add
in 1886, which read Coca-Cola Delicious! Refreshing! Exhilarating! Invigorating! The
company uses adver4tising to trigger desire as often and in as many ways as possible.
Through out the years, slogans or coca-cola have been memorable .Here are some highlights:

2000-Coca-Cola Enjoy

1993-Always Coca-Cola

1990- Cant Beat the Real Thing

1989-Cant Beat the Feeling

1986-Red,White and You

1982-Coke Is It

1976-Coke Adds Life

1971-Id Like to Buy the World a Coke

1969-Its the Real Thing

1963-Things Go Better With Coke

1959-Be really Refreshed

1944-Global High Sign

1942-Its the Real Thing

1936-Its the Refreshing thing to do

1929-The Pause That Refreshes.

6.2 BRAND AMBESSDORS

Coca-Cola had signed on various celebrities including movie stars and cricket players
such as Shahrukh Khan, Hritik Roshan, Amir Khan, Akshay Kumar, Aishwerya Rai,
Vivek Oberai, Rani Mukherjee, Bipasha Basu, Riya Sen, Saurav Ganguly, Virendar
Sehwag, southern celebrities like Vijay in the past and today its brand ambassadors .

7. MISSION AND LEADERSHIP

7.1 MISSION

Our mission is to refresh the world in mind, body & spirit and to inspire
moment of optimism through our brand and our action.

Create consumer products, services & communications, customer service and bottling system
strategies, processes and tools in order to create competitive advantage & deliver superior
value to:

Consumers as a superior beverage experience.

Consumers as an opportunity to grow profits through the use of finished drink.

Bottlers as an opportunity to grow profit and volume.

TCCC as a trade mark enhancement & positive economic value added.

Suppliers as an opportunity to make reasonable profits when creating real value added
in

an environment of system-wide teamwork, flexible business system &

continuous

improvement.

CCI Associates as superior career opportunity.

Indian society in the form of a contribution to economic and socio development.

7.2 LEADERSHIP

Theres never been a better time to be the part of The Coca-Cola Company.
Our people are dedicated to strengthening relationship with stake holders and communities
everywhere.

Mr. Isdell leads the Coca-Cola Company into the new century with a firm
commitment to the values and spirit of the worlds greatest brand. Under Isdells leadership,
the Coca-Cola Company is positioned for growth, guided by the mission to provide the
branded beverage that refresh people around the world, anywhere, anytime, everyday.
By making key decision making closer to the local markets, it has spurred innovation,
accelerated growth and fostered deeper connection to the consumer. Simply put they are
closure than over to us.

A talented and highly experienced world wide management team coordinates the new, nimble
and entrepreneurial network .The local strategy enables them to listen to all the voices around
the world asking for beverages that span the entire spectrum of tastes and occasions.

The company quotes what people want in the beverage is reflection of who they are,
where they live, who they work and play, and how they relax and recharge. Whether
you are a student in the United States enjoying a refreshing Coca-Cola, women in Italy
taking a tea break, a child in Peru is asking for a juice drink, or couple in Korea buying
bottled water after a run together, we are there for you.

The company is determined not only to make great drinks, but also to contribute to
communities around the world through the commitments to the education, health, wellness,
and diversity.

It strives be good neighbour, consistently shaping its business decision to improve the quality
of life in the communities in which it does business. It is a special thing to have billions of
friends around the world, and the company never forgets it.

8. MANUFACTURING PROCESS

We at Coca-Cola are committed to manufacture our products with utmost care and with
quality at top priority which makes it the world leader in the soft drink industry. Following is
the overview of the stringent
Processes adopted in manufacturing before our quality product reaches finally to our proud
consumers.

8.1 WATER TREATMENT:

We at HCCBPL Varanasi follow a batch treatment which includes coagulation & flocculation.
The method ensures disinfection and settling of all macro impurities and thereafter it pass to
sand, carbon filters to remove off odour ,off colour, off taste, and thus it is strictly bought in
line with the WHO requirements. We are also using state of art micron filtration process
where the water is filtered up to the extent of 1 micron before it is fed to the process.

This extensive treatment of water under strict monitoring and sampling for quality leads to
pure hygienic water with the highest quality meeting the Coca-Cola standards.

8.2 SYRUP PREPARATION:

Coca-Cola uses highest quality of sugar which is controlled and ensured by its stringent prelaid standards, which serves as the strict criteria before acceptance of a lot. To ensure high
quality of syrup, it is subjected to hot treatment wherein it is given a contact time with hyflo
and carbon at elevated temperature. It is then passed through a filter press which removes the
carbon particles and other impurities before it declared fit for concentrate mixing. All this
process takes place under the strict vigil by the quality department which maintains the
appropriate records of the numerous tests carried out in the entire process which makes it a
foolproof process.

In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple syrup
in very strict hygienic condition to yield final syrup. The entire syrup manufacturing area is
maintained under a constant positive pressure which rules out the possibility of any external
particles entering into the process room.

8.3 CONTAINER WASHING:

Container has been identified as one of the major critical control point in the entire
manufacturing process & thats the reason that company has laid some of the very stringent
and foolproof systems which ensures Coca-Cola product to be of the highest quality and
reflects our commitment towards delivering the best in class product to the consumers.

The bottles received from the market are loaded on the conveyor by the uncasing machine
and the arrays of the unwashed bottles passes through the four pre-wash inspections stations
which ensures removal of rusty neck bottles, excessively dirty bottles, bottles carrying
foreign matter, foreign bottles. And thus the good bottles pass into the bottle washing
machine which uses intensive mechanical and chemical processes to clean and disinfect the
bottles thoroughly and ensures the bottles to be ready for filling. However as an additional
safety, there is again a post wash inspection station comprising of 4 sub-stations, which
ensures removal of the chip necked bottles and suspected bottles from the lot. Thus the
bottles are subjected to series of stringent inspections before it is fed to the filler for filling.

8.4 MIXING, PROPORTIONING:

Proportioning is basically a process where ready syrup is diluted in a predetermined fixed


proportion with water and carbonated concentrate in to beverage conforming strictly to
companys norms and specifications. It is carried out by an Italian Machine-MOJONNIER.

8.5 FILLING & CROWNING:

The chilled carbonated beverage fed by the MOJONNIER is filled into the bottles through a
rotator machine named FILLER. The bottles are immediately crowned by crowner (adjacent
to the filler) and thereafter bottles passes through the date coding machine which enable the
consumer to be 100 percent sure of consuming a perfectly safe and fresh product.

8.6 FINAL INSPECTION:

After date coding, there is once again a final inspection station where light inspectors all low
or high filled bottles and permit only the saleable product to pass through for casing to the
caser machine.

8.7 MANAGING THE WASTE WATER:

Production lines maintain the waste water from the bottle washers, Syrup and Filler rooms.
Entire waste water generated is treated at Waste Water Treatment Plant and discharged
through a 800 meters long pipeline specially laid to discharge the treated waste water away
from inhabited areas. Part of this water is being used for gardening purpose within the plant
premises.

8.8 MARKET & CUSTOMERS:

Once the finished product is ready, it is transported to the distribution centers and then to
retail outlets by way of route trucks. The consumer buys the soft drink from the retailer
outlets. The empty bottles are simultaneously collected by the distribution channels at the
time of dispensing the finished products.
8.9 SUPPLIERS AND OTHER BUSINESS PARTNER:

Other than water and concentrate, bottling operation require sugar, CO2, bottles, crates and
other miscellaneous materials. The Coca-Cola India division has a Supplier authorization
program where suppliers are authorized based on a defined criterion. Environmental
considerations are amongst the critical of these criterions.

8.10 EMPLOYEES, PLANTS & MACHINERY:

The no of total unit employees is approximately 113 & in summer season, which is a peak
season for sale of soft drinks, the plant works for three shift operation round the clock.

The overall education level of the employees is good and they obviously have a good
expertise in water treatment and purification processes. Extensive in-house training programs
are conducted to maintain the competency of the manpower in respective areas. The plant and
machinery consists of state of art bottling machinery and test equipment to get consistent
quality product at the optimum usage of raw materials. The plant also has an extensive
quality test laboratory with equipment like spectrophotometer, density meter, micro lab etc. to
conduct on the spot tests at various stages of production.

A typical bottling line will consist of uncaser- pre wash inspection station conveyers-bottle
washer-post wash bottle inspection stationfiller-final light inspection station-conveyor-and
caser.

9. SWOT ANALYSIS

Coca-Cola Company is one of the leading MNC in the world. It has made a remarkable
growth since it origin and it has got a good potential in spite of various hurdles coming its
way. By going through its SWOT analysis we can know much more about the company.

STRENGTH:
The company has got various strengths, which leads the company be a market leader.
Some of the strengths listed below:

A) Strong product line:

The company has got various fast moving products which are going great job in the market.
These soft drinks not only quench thirst but also refresh everyone it touches. One of the
strong brands of the company is Thumps Up, which specially doing well in the Indian
market. It has captured one of the major shares of the soft drink market.

B.) Advertising:

Advertising plays a major in promoting sales of the product. The company has got one of the
best advertising strategies. Appointing film actors, as the brand ambassadors, makes a great
impact on the mind of the customers. The company should try to launch more and more
advertising and sales campaigns to promote sales to the maximum

WEAKNESS:

As no man in this world is a complete man and so are the companies. Every company
has got weakness so as Coca-Cola Company too. Some of the weaknesses which the
company should overcome are as follows:

A.) Distribution network:

The company has got an average distribution network this is one of the reason why the
company fails to fulfill the demand of the customer at time of peak seasons. It must go for
some more bottling plants and should opt for better distribution channels to increase the sales
in the best possible manner.

B.) Pricing strategy:

The company has got a pricing strategy as there is no certainty of rising or fall of price during
the peak season. This also hamper the sales of the company as the retailers and distributor get
dilemma whether to place the next order or not as increase or decrease in price may hamper
their profit margin and blockage of the goods.

OPPORTUNITIES:

Instead of weakness and threats the company the company has got various
opportunities to which it has to go for. The opportunities for the company are as
follows:

A.) Large Market:

As India is said to be one of the biggest market in the world, thus the company survive for
long and can expands to its length and width. Still there are thousand of villages which have
not been covered by soft drink companies. If the company targets the rural market it can
easily make large profits and thus can also satisfy its aim to benefit and refresh the whole
nation.

B.)Launch of other brands:

Coca- Cola Company has got more than 300 brands which is running successfully over the
world. Thus it can launch some more brands in the country, after studying the demand and
desire of the people and can deep its roots by winning their minds and hearts.

THREATS:

Some of the threats which the can face:

(A) Competitors:

One of the strong competitors of the company is Pepsi Co. thus it has to formulate such
strategies which make it to remain one step ahead and give a strong competition to the
competitors.

Some of the other competitor in the path of growth to the company is the local soft drinks
manufacturers who play an active part at the time of peak season. The other local refreshers
like Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the company.

(B) Govt. Policies:

The policies of the government also play a major role for the company. The company can not
perform well or in its own way by violating the rules of the government. Thus if the
government formulates some policies which creates hindrances in the working of the
company it will prove to be one of the major threats.

10. MANAGEMENT STYLE

DONT

The company discourages such conduct and habits which are likely to undermine the way
of life in the organization.

If it is mandatory for the company to adopt both the accounting standards i.e. UGAAP &
IGAAP, then the company should make sure there should not be violation of any of the
accounting standards in UGAAP as well as in IGAAP at any cost.

DOES

The company should make aware and impart knowledge to the employees regarding clear
cut bifurcation of standards used UGAAP & IGAAP.

The company should take necessary steps so that paper work should be as less as
possible, but this should not be at the cost of effectiveness in work.

NOTE :

1. UGAAP -- UNITED STATES STANDARDS GENERALLY ACCEPTED


ACCOUNTING PRINCIPLES
2. IGAAP -- INDIAN GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES

11. ANNEXURE
Annexure 1 : Market Share of Coke and Pepsi

** The following shares were calculated with respect to only Pepsi and Coca- Cola. Other
companies were not brought under the purview of the research by the research organizations.

Annexure 2 : Factors affecting soft drinks market

12. OBJECTIVES OF THE STUDY

To study How the Finance Department of Hindustan Coca-Cola


Marketing Company works.

To have a broad view of the companys financial policies.

To learn what points are considered while processing claims of the


discount schemes or general bills.

To ensure that processes are within policies and procedures of the


company.

To ensure that the payment of the bills is made within the specified
amount of time.

To study what formalities that have to be fulfilled while making


purchases and while making payments.

To ensure the transactions that occur are properly recorded and are
recorded with the specified procedures.

To

study the work process of direct route & indirect route.

10. MANAGEMENT STYLE


Every study has some limitations in terms of time, cost or human error
etcI have tried my best at my level to make it an original and a genuine
one. Due to shortage of time it may be that the expectations wouldnt
have been met, still an attempt has been made inorder to represent one
of the best reports.

This project report aims at describing the processes that are followed
while

making payments to the vendors, receiving payments from the

distributors. I have tried to explain the actual process but the meaning
that it has is not what it actually is.

Some human errors would have been resulted while preparing this project
report.

14. REFERENCES

www.coca-colaindia.com.

www.cocacola.com.

www.yahoo.com.

www.wikipedia.com.

www.google.co.in.

Actual processes in which training was received have


been defined.

With the help of the senior executives of the company


an attempt has been made inorder to define the processes and
procedures followed.

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