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ltd
ACKNOWLEDGEMENT
Gratitude takes three forms ‘a feeling from heart ,an expression in words and a giving return, I
take this opportunity to express my heartful feeling.
I Thank Prof.S.H. Shettar our principal, Basaveshwar commerce college, Bagalkot, for
permitting me to do this project.
I would also like to thank other faculty members of B.B.A for their valuable support and all the
staff members of the organization who helped me throughout in-plant training.
Finally its my foremost duty to thank all people those who have been helped directly or
indirectly for successful completion of the project report.
DECLARATION
I undersigned hereby declare that this project report entitled “EFFECTIVENESS OF
DISTRIBUTION CHANNEL” in Laxminarayan Agencies ,Bagalkot, has been prepared by me
during the December and January 2107-18 under the valuable guidance of Prof.Vidya I. Vastrad
department of B.B.A, Basaveshwar Commerce College Bagalkot.
Further I declare that this project report is genuine and the result of my own efforts, it has been
submitted to RANI CHANNAMMA UNIVERSITY ,BELGAVI.
DATE:
Mr. Vishal S Somani
PLACE:
EXECUTIVE SUMMARY
CONTENTS
1. General information
2. Introduction to the problem
1. Type of an organization
2. Vision & Mission
3. Different departments and their functions
4. Board of Director list
5. Organizational chart
4. Theoretical perspectives
5. Methodology
1. Research design
2. Data collection methods
3. Sample plan
7. Findings
8. Conclusion and recommendation
9.Annexure
10.Bibliography
CHAPTER – 1
GENERAL INFORMATION
The main production of soft drink was stored in 1830’s & sincethen from those experimental
beginning there was an evolution until in1781, when the worlds first cola flavored beverage was
introduced.These drinks were called soft drinks, only to separate them fromhard alcoholic drinks. This
drinks do not contains alcohol & broadlyspecifying this beverages, includes a variety of
regulated carbonated softdrinks, diet & caffeine free drinks, bottled water juices, juice drinks,
sportdrinks & even ready to drink tea/coffee packs. So we can say that softdrinks mean carbonated
drinks.Today, soft drink is more favorite refreshment drink than tea,coffee, juice etc.It is said that
where there is a consumer, there is a producer & thisresult into completion. Bigger the player,
the harder it plays. In suchsituation broad identity is very strong. It takes long time to make
broadfamous.Coca – Cola has its beginning in 1981 & since then has been one of the three most
dominate players in this soft drink industry.
In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.
BEVERAGES
NON-
ALCOHOLIC
ALCOHOLIC
NON-
CARBONATED
CARBONATED
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
CHAPTER 2
The scope of the study is restricted to 40 Retailers of Bagalkot District. And Scope of study
was limited to an extent of 30 days.
The coverage of objective of study is limited to the extent of the information given by the
organization
CHAPTER – 3
A BRIEF DESCRIPTION OF THE ORGANIZATION
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him
but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler
focused on fountain sales.
1899 … The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting wit
h Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle
Coca-Cola across most of the United States -- for the sum of one dollar. A third Chattanooga
lawyer, John T. Lupton, soon joined their venture.
The Coca-Cola Quality System: a worldwide initiative involving every aspect of our business.
Everyone who works for or with Coca-Cola is empowered and expected to maintain the highest
standards of quality in products, processes and relationships. TCCQS mandates in-depth self-
assessment throughout our operations, by all our business units. This enables us to continually
raise our standards
The latest version of our system-Evolution 3, launched in 2004-has been externally benchmarked
against international quality standard ISO 9001. It also incorporates the Hazard Analysis Critical
Control Point system.
Values
They are guided by shared values that they will live by as a company and as individuals.
Beliefs
“There is much in our world to celebrate, refresh, strengthen and protect. The Coca-Cola
Company is a vibrant network of people, in over 200 countries, putting citizenship into action.
Through our actions as local citizens, we strive every day to refresh the marketplace, enrich the
workplace, protect the environment and strengthen our communities”.
”We are a local employer, with responsibility to enable our people to tap into their full potential;
working at their innovative best and representing the diversity of the world we serve”.
compliance with the law, and respect for the unique customs and cultures in communities where
we operate.
Our Company has always endeavored to conduct business responsibly and ethically. We respect
international human rights principles aimed at promoting and protecting human rights
Our acknowledgment of these international principles is consistent with our dedication to
enriching the workplace, preserving the environment, strengthening the communities where we
operate.
Quality
We ensure the quality and safety of our beverages through The Coca-Cola Quality System
(TCCQS), our integrated approach to managing quality, environment, health and safety. We
continuously review TCCQS to ensure it meets the most stringent and up-to-date global
requirements related to food safety, as well as quality management methods, industry best
practices and marketplace conditions.
In our ingredient evaluation laboratories, for example, we perform precise analyses of fruit juices
and other ingredients sent to us by our suppliers, to ensure and to improve product quality. Our
processes, too, undergo constant scrutiny, to safeguard the water we use in our products and the
packaging that carries them to our consumers. We inform and educate our business partners
about our standards so that they meet the highest quality requirements. Under TCCQS, quality is
our highest business objective and our enduring obligation.
Value Chain
Our Suppliers
Our suppliers include those business partners who supply our system with materials, including
ingredients, packaging and machinery as well as goods and services. At a minimum, all
authorized and direct suppliers must comply with all applicable laws and regulations, including
those concerning child labor, forced labor, abuse of labor, freedom of association and collective
bargaining, discrimination, wages and benefits, working hours and overtime, health and safety,
and environmental practices. All our new agreements with suppliers require compliance with our
Supplier Guiding Principles.
Our Customers
Our customers include large, international chains of retailers and restaurants, as well as small,
independent businesses. Some of our customers are major corporations as globally familiar as the
name Coca-Cola; others are the corner
Customer Development and Training: We provide support to smaller customers to help make
their businesses more efficient and profitable. These centers provided training in general
management, marketing, finance, inventory management and customer service-at no cost-to
more than 21,000 independent retailers in 2005.
We also work with customers to broaden the range of beverages they offer, provide nutritional
information and ensure our beverages are marketed responsibly.
VISION
”To achieve sustainable growth; we have established a vision with clear goals.
MISSION:
Far from being a burden and waste, packaging adds value to products by extending the shelf-life
of goods, minimizing breakage, reducing transportation and handling costs, safeguarding public
health and providing product-use information and convenience to the consumer. The negative
perceptions of packaging simply as a troublesome byproduct are at direct odds with the
Recognizing the role of packaging in no way diminishes the need to further minimize its impact
on the environment. In fact, in an emerging era of scarcer natural resources, rising energy costs
and greater global environmental awareness, companies focused on long-term success are
moving beyond simply limiting impacts and are working toward competitive packaging solutions
About Bottling
One of our great strengths is our ability to conduct business on a worldwide scale while
maintaining a local approach.
At the heart of this approach is our bottling system. Before any of our 2,400 beverage
products is consumed by anybody around the world, it has to be produced, packaged and
distributed. Since we reach 6 billion consumers in over 200 countries, our bottling system has to
be the best. Our business opportunities are enormous and our commitment to our consumers and
communities is great.
PLANET: We act as a responsible global citizen, focused on our environment efforts and
PEOPLE: We inspire to be a great workplace where people are inspired to be the best they can
be.
PROFIT: We maximize returns to our shareowners while being mindful of our overall
responsibilities.
PORTFOLIO: We bring the global market place beverage brands that anticipate and satisfy
Our bottling partners are local companies so they are rooted in their communities, thinking and
acting locally. They are employers, purchasers of local goods and services, good neighbors, and,
It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance, boats transport
Coca-Cola® and our other brands between the many hundreds of islands that make up that
nation. In the Amazon, where the main road is often the river itself, water-borne distribution is
also common. In some of the higher elevations of the Andes, Coca-Cola is sometimes
Coca-Cola is often thought to be one brand made by one company. In reality, it is a vibrant
business system, in more than 200 countries around the world, made up of The Coca-Cola
Company and more than 300 Coca-Cola bottlers. Most of our bottlers are independently owned
Together with our bottling partners, we operate the most extensive beverage distribution system
in the world. Known informally as the Coca-Cola system, this network of 848 plants,
approximately 200,000 vehicles and more than nine million coolers and vending machines helps
us to manufacture and distribute our products to customers and consumers around the world,
where our beverages are consumed at a rate of more than 1.3 billion servings each day.
Manufactures and sells some finished beverages, both carbonated and noncarbonated.
Combine our syrup with carbonated water or combine our concentrate with sweetener
and water and/or carbonated water (depending on the product) to produce a finished
beverage.
Place beverages in cans or bottles and then transport the finished beverages to
+5Our bottling partners operate the majority of Coca-Cola bottling and canning operations,
producing and distributing more than 80 percent of our worldwide volume. The Coca-Cola
Bottling partners range from international and publicly traded businesses to small, family-owned
ownership interest in only a small number, meaning that the vast majority of bottlers operate
with separate governance and management structures, and in accordance with applicable laws
and customs. Our relationship with these partners is one of collaboration and support, based on
mutual self-interest, common goals and shared values. We make every effort to positively
influence environmental activities and policies throughout our bottling system and to provide
information from both our Company-owned operations and our broader system.
Community
We live and work in more than 200 countries and have deep roots in communities around the
world. We are connected to the lives and livelihoods of those communities. And we are intensely
We contribute to economic success through our day-to-day business, by providing jobs in our
own operations as well as jobs in businesses we touch along the way. We call it the multiplier
effect, where we not only positively affect those directly employed by our business but also
In addition to economic impact, we invest in local economies through substantive and locally
relevant community programs. Wherever we operate, we work with local leaders, businesses and
governments to identify community needs and aspirations. The resulting partnerships and
programs are an important part of how we contribute to the well-being of the communities where
we operate.
Economic Impact
The Coca-Cola business is essentially a local one. With our bottling partners, we produce our
products in more than 800 plants around the world. In those plants and other facilities, we
employ local people, pay taxes to governments, pay suppliers for goods, services and capital
opportunities and wealth creation as well as technology and knowledge transfer; local
Local Initiatives
The Company and our bottling partners contribute to a wide range of community causes in
countries around the world. In keeping with the local nature of our business and the differing
needs of individual communities, our approach is primarily a local one, with community
communities and governmental organizations and NGOs to create and support projects most
relevant to communities.
Responding to Local Needs: We support a wide range of initiatives that respond to specific local
needs:
Health: Tackling such health issues as polio, tuberculosis, hepatitis, malnutrition and
hygiene education
hospices
Cultural heritage and the arts: Promoting the arts and artists, preserving heritage
1. Coca-cola
2. Thumps Up
3. Sprite
4. Fanta
5. Limca
6. Maaza
7. Kinley
8. Minute Maid
Out of which
1. Coca-cola, Maaza, Kinley, Sprite, Minute Maid are Coca-Cola products AND
2. Thumps up, Limca, Fanta are the products of Parle which are purchased by the
Coca-Cola Co.
ORGANIZATIONAL CHART
SALES MANAGER
EXECUTIVE
SALES OFFICER
Bord of directors
Names Position or status
Jean Claude Bega B.O.D chairman & audit & risk committee
chairman
CHAPTER-4
THEOREOTICAL PROSPECTIVES
Channel of Distribution
Means used to transfer merchandise from the manufacturer to the end user. Intermediaries in the
channel are called middlemen. Those who actually take title to the merchandise and resell the
goods are merchant middlemen. Those who act as Broker but do not take title are agent
middlemen. Merchant middlemen include wholesalers and retailers. Agent middlemen include
Manufacturer's representatives, brokers, and sales agents.
Whether these exchange processes occur between manufacturers and their suppliers, retailers and
consumers, or in some other buyer-seller relationship, marketing channels offer an important
way to build competitive advantages in today's global marketplace.
Marketing channels always emerge from the demands of a marketplace. However, markets and
their needs are always changing. It's true, then, that marketing channels operate in a state of
continuous evolution and transformation. Channels of distribution must constantly adapt in
response to changes in the global marketplace.
This new selling orientation inspired the development of new intermediaries as manufacturers
sought new ways to expand market coverage to an increasingly mobile population. The selling
orientation required that more intimate access be established to a now more diversified
marketplace. In response, wholesale and retail intermediaries evolved to reach consumers living
in rural areas, newly emerging suburbs and densely populated urban centers.
Relationship marketing is driven by two principles having particular relevance to marketing
channel strategy:
The role intermediaries play in building customer confidence is their most overlooked function.
Several types of risks are associated with exchanges in channels of distribution, including need
uncertainty, market uncertainty, and transaction uncertainty. Intermediaries create value by
reducing these risks.
SWOT ANALYSIS
Strengths:
Weakness:
Opportunities:
Threats:
1. Health awareness
2. Water scarcity and cost
3. Hard competition from PepesiCo in BRIC
CHAPTER - 5
METHODOLOGY
Research Design
1. Survey
2. Implementation
In the month of January survey was conducted and in the remaining period
implementation was carried out.
Survey:
For the survey purpose the entire bagalkot city was divided into 3 parts
1. Bus stand area
2. College area
3. Extension area
1. Retailer Survey
2. Personal Interview
Research Instruments
1. Bar graphs
2. Frequency tables
3. Percentage tables
SAMPLING
Sampling allows us to concentrate our attention upon relatively small number of people and
hence devote more energy to ensure that the information collected from them is accurate.
POPULATION:
People from the Bagalkot city.
SAMPLE FRAME:
Retailers at Bagalkot city.
SAMPLE UNIT:
Retailers who sell Cold-drinks
SAMPLING SIZE:
20 retailers only.
SAMPLE METHOD:
Stratified Sampling.
CHAPTER-6
DATA ANALYSIS AND INTERPRETION
80
60
40
20
Percent
0
Coke Pepsi Sahred
Nature of outlet
The above chart shows that out of the surveyed outlets 76% outlets surveyed are shared outlets,
23% are coke monopoly outlets, 1% is Pepsi monopoly.
100
80
60
40
20
Percent
0
Good Bad
The above chart shows that 99% of the retailers surveyed had good opinion towards the
distributors; therefore the distributors have to maintain the same.
Only 1% of the retailers surveyed have bad opinion therefore the distributors have to control this
aspect because the word of mouth plays a very important role and they should try to make their
relationship 100%.
Q3) Table showing how many times the distributor visits outlets per week
40
30
20
10
Percent
0
Once Alternative Daily
The above chart reveals the frequency of visit made by the distributor in the market. This chart
shows that to 47% of the outlets surveyed the visit was on alternative days, 46% of the outlets
surveyed the visit was on daily basis and 7% of the outlets surveyed the visits are made once a
week. This shows that the company is mostly following the Alternative and daily routes.
60
50
40
30
20
Percent
10
0
Once Alternative Daily
The above chart shows that there is a huge demand for Coke Products in Bagalkot city and
therefore 61% of the retailers are expecting daily visits from the distributors in order to meet the
demand from the consumers, therefore the company has to look to this aspect seriously.
36% expect an alternative days visits instead of daily visits, the outlets which are non potential
outlets expect the distributor to visit once a week
60
40
20
Percent
0
yes No
The above chart shows that delivery of the products is on time and 75% of the retailers have
agreed to this question and 25% have not agreed.
The company has to make efforts to supply the products to these 25% outlets.
Areareyou
Q 6) Table showing satisfied
you satisfied witheach
with the supply thetimesupply
? each time
70
60
50
40
30
20
Percent
10
0
yes No
The chart shows that the company is effective during each supply with respect to the behaviour
and suggestions to the retailers.
Therefore 66% of the retailers surveyed are satisfied with the supply during each delivery and
34% are dissatisfied with the same .
50
40
30
20
10
Percent
0
0-10 10-20 20 and above
The chart shows that the sales per week of 50% of the retailers is 0-10 cases and 45% is 10-20
cases so efforts should be made to increase the sales by proper supply and other promotional
activities.
Another method is to supply according to their wants and there should not be shortage of
products to these outlets.
CHAPTER -7
FINDINGS
FINDINGS:
1. Most of the outlets are shared.
2. The basic problem is that the supply from the plant to the depot and then to the
distributors takes a long time due to which the distributors are not in the position
the supply the required quantity to the retailers.
3. On an average the sales per week of the retailers is between 0-20 cases.
4. The sales people and the distributor have maintained good relationship with the
retailers.
5. On an average the expected visits are daily.
RECOMMENDATIONS
1. The company must have a super stockiest in Belgaum city so that this can cater not only
the need of the Belgaum market but also the surroundings places.
2. The company has to convert Pepsi outlets into coke outlets by giving them promotions
like schemes, gifts, proper supply.
3. The company has to start its plant in Hospet as soon as possible so that there will be no
problem to the distributors as well as the retailers with respect to the stock.
4. The company has to put on their best efforts to convert the76% shared outlets into coke
monopoly outlets by giving promotional activities and also by on time delivery of stocks
which plays a very important role.
5. 36% of the retailers expect alternative days visits instead of daily visits, the outlets which
are non potential outlets expect the distributor to visit once a week therefore the company
6. has to supply accordingly.
7. To make the satisfaction level of the retailers to 100% the company has to supply
properly to the remaining 34% outlets surveyed.
CHAPTER-8
CONCLUSION
CONCLUSION
Distribution Channel plays a very important role especially with respect to the soft drink industry
because if the product is not available on time the consumes will switch on to other brands and
the company will loose its market share and hence an effective distribution channel is the need of
this industry.
The distribution channel of coca cola company is effective
CHAPTER -9
ANNEXURE
5. How many times would you expect distributor vehicle to visit you
a) Once b) alternative days c) daily
7. Are you satisfied with the supply of coke during each delivery
a) Yes b) No
9. Any suggestions?
CHAPTER-10
BIBLOGRAPHY
All the information needed to complete this project is obtained from the following sources:
1. Company Website: www.coca-cola.com
2. Search Engines
3.Market Developers.
4.Distributors
5.Marketing Research Book by Tull and Hawkins