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PRIVATE LIMITED
AN INTERNSHIP REPORT
ANURADHA NAYAK
SSN: 888-93-2972
1
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ACKNOWLEDGEMENT
I would like to thank my Mr. U Narendra Kini, General Manager, Coca-Cola India,
without whom an internship with, Hindustan Coca-Cola Beverages Private Limited
(HCCBPL) would not have been possible. I am grateful to him for having taken time off
his busy schedule and spoken to the concerned person to get me this internship. I
express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL)
for having given me an opportunity to work with them and make the best out of my
internship. I thank my trainers, Miss Poornima and Miss Neha Kashyap for having
trained me and constantly guided and supported me throughout the training period.
My heartfelt gratitude also goes out to the staff and employees at HCCBPL for having
co-operated with me and guided me throughout the one and a half months of my
internship period. I thank my school, Ohio University Christ College Academy of
Management Studies for having given me this opportunity to put to practice, the
theoretical knowledge that I imparted from the program. I thank the internship co-
coordinators, Dr. Amalendu Jyotishi and Mr. Girish M for having guided and supported
me through the course of the internship. I take this opportunity to thank my parents
and friends who have been with me and offered emotional strength and moral support.
_______________________________________________
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EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a
pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored
syrup in a three-legged brass kettle in his backyard. He first “distributed” the product
by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the
drink for five cents at the soda fountain. Carbonated water was teamed with the new
syrup, whether by accident or otherwise, producing a drink that was proclaimed
“delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is
enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five
cents a glass. Early growth was impressive, but it was only when a strong bottling
system developed that Coca-Cola became the world-famous brand it is today. Coca-
Cola was the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. In the new liberalized and deregulated environment in 1993, Coca-Cola made its
re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling
arm of the Coca-Cola Company. The main objective of this study lies in understanding
the organization and studying and understanding the consumers’ perception and
opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by
the Coca-Cola Company. A consumer sampling involving 5.5 lakh people was
conducted in a span of 30 days across major cities in order to give the product the
required marketing push and to recognize the prospective consumers and their opinion
in order to develop and market the product in a better way in the near future. The
methodology used in studying and understanding the perceived views of consumers
towards the product was ‘SAMPLING’. The findings of the activity have been drawn out
in form of graphs and suggestions have been offered there from.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION……………………………………………………7
1.1: A brief insight- The FMCG Industry in India……………………………………..8
1.2: A brief insight- The Beverage Industry in India……………………………….10
Figure 1: Beverage Industry in India………………………………….10
4
Figure 4: Organization Structure of Coca-Cola India……………….25
Figure 5: Organization Structure of Coca-Cola India……………….26
3.4: Organization Structure of the Sales Department in HCCBPL……………..27
Figure 6: Organization Structure of the Sales Department…….27
3.5: Manufacturing Unit of HCCBPL………………………………………………………28
Figure 7: Chain followed from Manufacture to Distribution…….28
3.6: Manufacturing process at HCCBPL………………………………………………..29
Figure 8: Manufacturing process…………………………………………29
3.7: Business Plan model at HCCBPL…………………………………………………….30
Figure 9: Business Plan model at HCCBPL……………………………30
3.8: Distribution Network…………………………………………………………………….31
3.8.1: Distribution Routes…………………………………………………………….31
3.8.2: Distribution System……………………………………………………………32
3.8.3: Departments involved in the Distribution process………………….33
3.9: SWOT Analysis of HCCBPL……………………………………………………………33
3.9.1: Strengths………………………………………………………………………….33
3.9.2: Weaknesses………………………………………………………………………34
3.9.3: Opportunities…………………………………………………………………….35
3.9.4: Threats……………………………………………………………………………..36
3.10: Competitors to HCCBPL………………………………………………………………37
CHAPTER 4: PRODUCTS…………………………………………………………38
5.1: Packaging details…………………………………………………………………………40
5
CHAPTER 5: PROJECT: PERCEPTION OF CONSUMERS TOWARDS
MINUTE MAID PULPY ORANGE………………………………………………..41
5.1: Objective of the Study………………………………………………………………….42
5.2: About the Product………………………………………………………………………..42
5.3: Methodology……………………………………………………………………………….43
5.4: Procedure……………………………………………………………………………………44
5.5: Findings………………………………………………………………………………………45
5.5.1: Graph 1: Total number of Consumers based on Age Group……45
5.5.2: Graph 2: Total number of Consumers based on Gender…………46
5.5.3: Graph 3: General reaction of Consumers about MMPO…………..46
5.5.4: Graph 4: Reaction analyzed on basis of Age Group……………….48
5.5.5: Graph 5: Reaction analyzed on basis of gender…………………….50
5.6: Additional Details…………………………………………………………………………51
5.7: Suggestions…………………………………………………………………………………53
CHAPTER 6: CONCLUSION……………………………………………………...54
APPENDIX…………………………………………………………………………..55
DATA SOURCES……………………………………………………………………58
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CHAPTER 1: INTRODUCTION
______________________________________________
_
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s. Now
operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola
system has successfully applied a simple formula on a global scale: “Provide a moment
of refreshment for a small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from
Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought
pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola
has created a special moment of pleasure for hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and services, thus increasing brand
equity on a global basis. They aim at managing their business well with people who
are strongly committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and objectives. The
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associates of this Company jointly take responsibility to ensure compliance with the
framework of policies and protect the Company’s assets and resources whilst limiting
business risks.
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG) are products that have a quick turnover and relatively low cost. Consumers
generally put less thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many
players had been facing severe problems on account of increased competition from
small and regional players and from slow growth across its various product categories.
As a result, most of the companies were forced to revamp their product, marketing,
distribution and customer service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian
customer witnessed an increasing exposure to new domestic and foreign products
through different media, such as television and the Internet. Apart from this, social
changes such as increase in the number of nuclear families and the growing number of
working couples resulting in increased spending power also contributed to the increase
in the Indian consumers' personal consumption. The realization of the customer's
growing awareness and the need to meet changing requirements and preferences on
account of changing lifestyles required the FMCG producing companies to formulate
customer-centric strategies. These changes had a positive impact, leading to the rapid
growth in the FMCG industry. Increased availability of retail space, rapid urbanization,
and qualified manpower also boosted the growth of the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service formats
of the FMCG industry by focusing on rural markets, direct distribution, creating new
product, distribution and service formats. The FMCG sector also received a boost by
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government led initiatives in the 2003 budget such as the setting up of excise free
zones in various parts of the country that witnessed firms moving away from
outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they generally
sell in large numbers and so the cumulative profit on such products can be large.
Unlike some industries, such as automobiles, computers, and airlines, FMCG does not
suffer from mass layoffs every time the economy starts to dip. A person may put off
buying a car but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of
global market dip, because they generally satisfy rather fundamental, as opposed to
luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth
largest sector in the Indian Economy and is worth Rs.93000 crores. The main
contributor, making up 32% of the sector, is the South Indian region. It is predicted
that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector
being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.
(Source: HCCBPL, Monthly Circular, March)
• Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,
Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products)
and Shoe care; the major players being; Hindustan Lever Limited, Godrej
Soaps, Colgate, Marico, Dabur and Procter & Gamble.
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Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables,
Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar,
Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola,
Cadbury, Pepsi and Dabur
• Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
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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:
• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
• The credibility and trust needs to be built so that there is a very strong and
safe feeling that the consumers have while consuming the beverages.
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• Consumer education is a must to bring out benefits of beverage consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-
being or prestige relevant to the category.
The beverage market has still to achieve greater penetration and also a wider spread
of distribution. It is important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up to the overall growth of the
food and beverage industry in the economy.
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CHAPTER 2: THE COCA-COLA COMPANY
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2.1: HISTORY
Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year
1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged
brass kettle in his backyard. He first “distributed” the product by carrying it in a jug
down the street to Jacob’s Pharmacy and customers bought the drink for five cents at
the soda fountain. Carbonated water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was proclaimed “delicious and
refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.
Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name
and penned “Coca-Cola” in the unique flowing script that is famous worldwide even
today. He suggested that “the two Cs would look well in advertising.” The first
newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty
citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs
reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to
inform passersby that the new beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been
a distinctive color associated with the soft drink ever since. For his efforts, Dr.
Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized
the potential of the beverage he created. He gradually sold portions of his business to
various partners and, just prior to his death in 1888, sold his remaining interest in
Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr.
Candler proceeded to buy additional rights and acquire complete ownership and
control of the Coca-Cola business. Within four years, his merchandising flair had
helped expand consumption of Coca-Cola to every state and territory after which he
13
liquidated his pharmaceutical business and focused his full attention on the soft drink.
With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson
and two other associates, Mr. Candler formed a Georgia corporation named the Coca-
Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was
registered in the United States Patent Office on January 31, 1893.
The business continued to grow, and in 1894, the first syrup manufacturing plant
outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois,
and Los Angeles, California, the following year. In 1895, three years after The Coca-
Cola Company’s incorporation, Mr. Candler announced in his annual report to share
owners that “Coca-Cola is now drunk in every state and territory in the United States.”
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new
building erected in 1898 was the first headquarters building devoted exclusively to the
production of syrup and the management of the business. In the year 1919, the Coca-
Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff
became the President of the Company in the year 1923 and his more than sixty years
of leadership took the business to unsurpassed heights of commercial success, making
Coca-Cola one of the most recognized and valued brands around the world.
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2.2: HISTORY OF BOTTLING
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed
that Coca-Cola became the world-famous brand it is today.
In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage
called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began
bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.
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.
Two young attorneys from Chattanooga, Tennessee believed they could build a
business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas
and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of
the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton,
soon joined their venture.
The three pioneer bottlers divided the country into territories and sold bottling rights to
local entrepreneurs. Their efforts were boosted by major progress in bottling
technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-
Cola bottling plants were operating, most of them family-owned businesses. Some
were open only during hot-weather months when demand was high.
15
Year 1916: Birth of the Contour Bottle
Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with
imitators. A group representing the Company and bottlers asked glass manufacturers
to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre
Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few
packages ever granted trademark status by the U.S. Patent Office. Today, it is one of
the most recognized icons in the world.
As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting
in 1923. A few years later, open-top metal coolers became the forerunners of
automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.
Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the
Company began a major push to establish bottling operations outside the U.S. Plants
were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa.
By the time World War II began, Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-war growth
During the war, 64 bottling plants were set up around the world to supply the troops.
This followed an urgent request for bottling equipment and materials from General
Eisenhower's base in North Africa. Many of these war-time plants were later converted
to civilian use, permanently enlarging the bottling system and accelerating the growth
of the Company's worldwide business.
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In the 1950s: Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type-the
traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce
versions. Cans were also introduced, becoming generally available in 1960.
Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello
Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke,
followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are
offered to meet consumer preferences in local markets around the world.
Political and economic changes opened vast markets that were closed or
underdeveloped for decades. After the fall of the Berlin Wall, the Company invested
heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion
was committed to new bottling facilities in Africa.
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21st Century: Coca-Cola today
The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as consumers seek brands that honor
local identity and the distinctiveness of local markets. As was true a century ago,
strong locally based relationships between Coca-Cola bottlers, customers and
communities are the foundation on which the entire business grows.
2.3.1: VALUES:
Coca-Cola is guided by shared values that both the employees as individuals and the
Company will live by; the values being:
• INTEGRITY: Be real
18
2.3.2: MISSION
• PEOPLE: Being a great place to work where people are inspired to be the best
they can be.
19
FIGURE 2: VISION FOR SUSTAINABLE GROWTH
20
CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES
PRIVATE LIMITED (HCCBPL)
_______________________________________________
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveal its formula to the Government and reduce its equity stake as required under the
Foreign Regulation Act (FERA) which governed the operations of foreign companies in
India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16
years, with its launch in Agra. An agreement with the Parle Group gave the Company
instant ownership of the top soft drink brands of the nation. With access to 53 of
Parle’s plants and a well set bottling network, an excellent base for rapid introduction
of the Company’s International brands was formed. The Coca-Cola Company acquired
soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by
Parle, as these products had achieved a strong consumer base and formed a strong
brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these
products became a part of range of products of the Coca-Cola Company.
In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-
entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm
of the Coca-Cola Company. However, this was based on numerous commitments and
stipulations which the Company agreed to implement in due course. One such major
commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its
shareholding in favor of resident shareholders by June 2002.
21
distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost
all goods and services required to cater to the Indian market are made locally, with
help of technology and skills within the Company. The complexity of the Indian market
is reflected in the distribution fleet which includes different modes of distribution, from
10-tonne trucks to open-bay three wheelers that can navigate through narrow
alleyways of Indian cities and trademarked tricycles and pushcarts.
“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life
ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This
resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India.
Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the
launch of the new packaging of 200 ml returnable glass bottles which were made
available at a price of Rs.5 per bottle. This new market accounted for over 80% of
India’s new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that
everyone who touches their business should benefit, thereby inducing them to uphold
these values, enabling the Company to achieve success, recognition and loyalty
worldwide.
COBO
FOBO
CONTRACT PACKAGING
22
3.2: MANIFESTO FOR GROWTH
3.2.1: VALUES
The values that the employees in the Company are expected to keep up to and work
by regularly are as follows:
• LEADERSHIP: To take an initiative and lead, motivate and drive the team with
energy and zeal, to deliver outstanding results.
• INNOVATION: To continuously strive for progress and reach the next level of
excellence in everything we do.
• PASSION: To be deeply committed and display drive and energy in the quest
to deliver outstanding performance.
• OWNERSHIP: To think and act like owners at all levels; to have decisions
taken at the lowest appropriate level.
23
3.2.3: MISSION
“To ensure customer delight, we commit to quality in our thoughts, deeds and actions
by continually improving our processes…Every time.”
24
3.3: ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA
25
Region Vice
President
AGM/AOD
Unit 1
AGM/AOD
Unit 2
AGM/AOD
Unit 3
AGM/AOD
Unit4
Region Finance
Region Customer
Service
Region Legal
Region BSG
Region
Director/Manager
Region Capability
Region Channel
Management
26
3.4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN
HCCBPL:
AGM/AOD
Human General
Plant Route to Resource Finance Sales
Manager Market Manager Manager Manager
Area
Area Sales Channel Capability
Manager Manager Manager
Sales Sales
Marketing
Executive Trainers
Market Key
Developer Accounts
Distributors
And
Salesmen
27
3.5: MANUFACTURING UNIT OF HCCBPL
The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and
one of the bottling operations owned by the company. The Plant has one PET line
which has the capacity of yielding 209 bottles, per minute, two RGB (Returnable glass
bottles) lines which yields 600 bottles per minute each and one Juice line which yield
155 bottles per minute. It caters to the whole of South Karnataka through a network of
more than 80 distributors. There are three depots in Bangalore; North Depot, East
Depot and Mega Depot.
Manufacturing Plant,
Bidadi
Sales and
Distribution
Operations
Distributors Outlets
Outlets
28
3.6: MANUFACTURING PROCESS AT HCCBPL
• Water is received from the River Cauvery and it passes through the water
treatment plant, further passing through the sand filter and the activated
carbon filter, so as to attain pure cleansed water.
• In the syrup room, the concentrate received from another bottling plant
situated at Pune, is blended with the sugar syrup
• Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is added to
the mixture to form the final product.
29
• On the other hand, simultaneously, the returnable glass bottles are
depalletized, inspected and washed for the purpose of filling in the final product
in it. This step does not take place in the PET bottle line as the bottles once
used are disposed.
• The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in
case of PET bottles), labeled and cased in order to be sent into the warehouse
for distribution.
Customers
Consumers
30
3.8: DISTRIBUTION NETWORK
HCCBPL has a wide and well managed network of salesmen appointed for taking up
the responsibility of distribution of products to diverse parts of the cities. The
distribution channels are constructed in such a way that the demand of customers is
fulfilled at the right place and the right time when it is needed by them.
The customers of the Company are divided into different categories and different
routes, and every salesman is assigned to one particular route, which is to be followed
by him on a daily basis. A detailed and well organized distribution system contributes
to the efficiency of the salesmen. It also leads to low costs, higher sales and higher
efficiency thereby leading to higher profits to the firm.
The various routes formulated by HCCBPL for distribution of products are as follows:
31
consumption. The stock does not exhaust within a day or two, instead as and
when required stocks are stacked up by them so as to avoid shortage or non-
availability of the product.
Examples: Departmental stores, Super markets etc.
• Immediate Consumption: The outlets in this route are those which require
stocks on a daily basis. The stocks of products in these outlets are not stored
for future use instead, are exhausted on the same day and might run a little
into the next day i.e. the products are consumed at a fast pace.
Examples: Small sized bars and restaurants, educational institutions etc.
• General: Under this route, all the outlets that come in a particular area or an
area along with its neighboring areas are catered to. The consumption period
is not taken into consideration in this particular route.
32
3.8.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS
3.9.1: STRENGTHS
33
includes different modes of distribution, from 10-tonne trucks to open-bay
three wheelers that can navigate through narrow alleyways of Indian cities and
trademarked tricycles and pushcarts.
3.9.2: WEAKNESSES
• LOW EXPORT LEVELS: The brands produced by the company are brands
produced world wide thereby making the export levels very low. In India, there
exists a major controversy concerning pesticides and other harmful chemicals in
bottled products including Coca-Cola. In 2003, the Centre for Science and
Environment (CSE), a non-governmental organization in New Delhi, said
aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and Coca-Cola, contained toxins including lindane,
DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a
breakdown of the immune system. Therefore, people abroad, are apprehensive
about Coca-Cola products from India.
34
• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST
AND ACHIEVE ECONOMIES OF SCALE: The Company’s operations are
carried out on a small scale and due to Government restrictions and ‘red-
tapism’, the Company finds it very difficult to invest in technological
advancements and achieve economies of scale.
3.9.3: OPPORTUNITIES
• LARGE DOMESTIC MARKETS: The domestic market for the products of the
Company is very high as compared to any other soft drink manufacturer. Coca-
Cola India claims a 58 per cent share of the soft drinks market; this includes a
42 per cent share of the cola market. Other products account for 16 per cent
market share, chiefly led by Limca. The company appointed 50,000 new outlets
in the first two months of this year, as part of its plans to cover one lakh
outlets for the coming summer season and this also covered 3,500 new
villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.
• EXPORT POTENTIAL: The Company can come up with new products which
are not manufactured abroad, like Maaza etc and export them to foreign
nations. It can come up with strategies to eliminate apprehension from the
minds of the people towards the Coke products produced in India so that there
will be a considerable amount of exports and it is yet another opportunity to
broaden future prospects and cater to the global markets rather than just
domestic market.
35
income. The beverage industry can take advantage of such a situation and
enhance their sales.
3.9.4: THREATS
• IMPORTS: As India is developing at a fast pace, the per capita income has
increased over the years and a majority of the people are educated, the export
levels have gone high. People understand trade to a large extent and the
demand for foreign goods has increased over the years. If consumers shift onto
imported beverages rather than have beverages manufactured within the
country, it could pose a threat to the Indian beverage industry as a whole in
turn affecting the sales of the Company.
36
3.10: COMPETITORS TO HCCBPL
The competitors to the products of the company mainly lie in the non-alcoholic
beverage industry consisting of juices and soft drinks.
• Dabur: Dabur in India, is one of the most trusted brands as it has been
operating ever since times and people have laid all their trust in the Company
and the products of the Company. Apart from food products, Dabur has
introduced into the market Real Juice which is packaged fresh fruit juice. These
37
products give a strong competition to Maaza and the latest product Minute
Maid Pulpy Orange.
CHAPTER 4: PRODUCTS
_______________________________________________
The Coca-Cola Company offers a wide range of products to the customers including
beverages, fruit juices and bottled mineral water. The Company is always looking to
innovate and come up with, either complete new products or new ways to bottle or
pack the existing drinks. The Coca-Cola Company has a wide range of products out of
which the following products are marketed by HCCBPL:
38
• In the Juice section:
39
4.1: PACKAGING DETAILS
• Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 ml
returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles
• Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and
1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack
• Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET
bottles
40
• Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5
litre PET bottles.
CHAPTER 5: PROJECT
PERCEPTION OF
CONSUMERS TOWARDS
MINUTE MAID PULPY
ORANGE
41
5.1: OBJECTIVE OF THE STUDY
The main objective of this study lies in studying and understanding the consumers’
perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced
into India, by the Coca-Cola Company. Perception can be defined as intuitive
recognition of a truth, aesthetic quality and the way a person sees or understands. In
the case of Minute Maid Pulpy Orange, one could define perception as the levels of
awareness and acceptance among people towards the product.
Minute Maid is a 62-year-old brand and entered the Coca-Cola fold in 1960. The
history of the ‘Minute Maid’ brand goes as far back as 1945 when the Florida Foods
Corporation developed an orange juice powder. The company developed a process
that eliminated 80% of the water content in orange juice to form a frozen concentrates
42
which, when reconstituted created orange juice. The product was thereby branded
‘Minute Maid’, a name signifying the convenience and the ease of preparation i.e. the
drink could be prepared in just about a minute. Minute Maid thus moved from a
powdered concentrate to the first ever orange juice from concentrate. Over the years,
through innovation and unmatched consumer experience provided in over 60
countries, Minute Maid brand has clearly become one of the world's largest juice and
juice drink brands. Minute Maid Pulpy Orange in India was launched in Hyderabad on
the 19th Of February. The product is aimed to further extend the leadership of Coca-
Cola in India in the juice drink category.
There are over a 100 products in the Minute Maid banner that include fruit drinks in
various flavors and fortified varieties. Coca-Cola is exploring its options to introduce
some of these in India in future after tweaking them to suit local tastes and conditions.
The product is made available in two packs; one being a 400 ML bottle priced at Rs. 25
and the other being a 1 LT bottle priced at Rs. 60. The exclusivity of the product lies in
the presence of real orange pulp in the drink contributing to its unique and refreshing
taste. Currently, the pulp is imported from Florida and the juice from Brazil, the largest
producers of Orange in the world. The product is bottled at the bottling unit of Coca-
Cola in Chittoor, Andhra Pradesh. In the long run, the company would be sourcing
these components locally by teaming up with farmers.
The product is made available in groceries, large format stores, eating and drinking
outlets, convenience stores etc. Mr. John Ustas, CEO of HCCBPL, said that Minute Maid
Pulpy Orange would be retailed across 25,000 outlets in the three Southern States of
Karnataka, Andhra Pradesh and Tamil Nadu in the months of March and April.
5.3: METHODOLOGY
As mentioned earlier in the report, Andhra Pradesh, Tamil Nadu and Karnataka, were a
part of the phased launch of the product in the market. A consumer sampling involving
5.5 lakh people was conducted in a span of 30 days across major cities in order to give
the product the required marketing push and to recognize the prospective consumers
43
and their opinion in order to develop and market the product in a better way in the
near future. The methodology used in studying and understanding the perceived views
of consumers towards the product was ‘SAMPLING’.
Sampling, by definition, is that part of statistical practice concerned with the selection
of individual observations intended to yield some knowledge about a population of
concern, especially for the purposes of statistical inference. Each observation measures
one or more properties of an observable entity enumerated to distinguish objects or
individuals. In the case of Minute Maid Pulpy Orange, the properties taken into concern
are, the opinion of people regarding the product, taking into consideration their age
and gender.
The process of Sampling in the city of Bangalore was conducted in the chain of Food
World outlets all over the city. A modern trade outlet like Food World was chosen
because of facts like; the number of Food World outlets is high and the number of
walk ins at each outlet was comparatively high as compared to any other stores or any
other modern trade outlets. In recent years, consumers have preferred shopping for
grocery and other necessaries at super markets due to reasons like, location of the
store, shopping at leisure and convenience, spacious stores, availability of a wide array
of products, prices offered and the quality of the products. Food World has been
existent in the city for a very long time now and it is an outlet which satisfies all the
above conditions and keeping that in mind, it was chosen.
5.4: PROCEDURE
The students appointed as summer trainees by the organization were assigned to carry
out the process of sampling. Each trainee was allotted different outlets on different
days and a specific number of cases containing 24 bottles of 400 ml each were given
to them for the purpose. A standardized procedure was to be followed by the trainees
to carry out the work, in order to achieve uniformity in the process, i.e. as follows:
44
• Talk to the store Manager in the respective store and attain chiller space in
order to chill the bottles as it was necessitated that the drinks be served chill to
the consumers and chill the bottles for about two hours.
• When the consumer entered or exited the store, the trainee had to stop the
consumer and tell the consumers few facts about the product i.e. that it was
the latest product introduced by Coca-Cola, that it was an orange drink with
real orange pulp in it and that it was to be had chilled and shaken well before
use.
• Then the bottles were to be shaken well, opened and given to the consumer to
taste and once they sipped the drink, the consumer would be requested to give
an oral opinion about the product.
• After this, in order to make a report, the approximate age of the consumer,
gender and their opinion was to be made note of.
5.5: FINDINGS
5.5.1: GRAPH 1
This graph depicts the total number of consumers divided on the basis of the age
group they belong to. The age of consumers included in the sampling activity ranged
from 5 years to 75 years. Accordingly the age groups 5 to 15, 15 to 25, 25 to 35, 35 to
45, 45 to 55, 55 to 65 and 65 to 75 have been formulated. There is not set limit for the
age of the consumers mainly because ‘Minute Maid Pulpy Orange’ is a fruit drink and it
can be consumed by people across different age groups with no restrictions being laid
and consumers of all ages enter food world on a given day, either individually and in
the case of children, with their parents. The consumers who were sampled with were
between 5 years and 75 years of age. The approximate age of the consumers was to
be guessed and noted down. Around 50% of consumers fall in the 25 years to 35
years and 35 years to 45 years age groups and the other 50% is distributed among
the other age groups.
45
Total No. of Consumers based on Age Group
7% 6%
8%
10%
13%
29%
27%
5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75
46
This graph makes a distinction between the number of males and number of
females with whom sampling was conducted. The percentage is almost the
same in both categories, but the number of females i.e. 365 is a little more
than the number of males i.e. 331, due to the fact that, most of the household
shopping is done by women rather than by men.
52% 48%
Male Female
5.5.3: GRAPH 3
47
The following graph denotes the feedback of consumers irrespective of the age
group they belong to or their gender. This is an overall perception of the
consumers towards ‘Minute Maid Pulpy Orange’.
15%
11%
66%
8%
From the above graph, it can be seen that, more than half the people who tasted the
product liked the product, i.e. they gave positive feedback about the product and 15%
of the consumers did not like the product. Out of the remaining 19% of consumers,
11% people came up with mixed reactions i.e. they had reasons both to like and
dislike the product and a small chunk of 8% of the total consumers sampled with, said
they did not like the drink too much, neither did they love the drink.
5.5.4: GRAPH 4
48
The following graph denotes the perception of consumers on the basis of the age
group they belong to. This kind of a classification becomes necessary, because
consumers of different age groups have different tastes and moreover, the ages of
consumers in the sample range from 5 years all the way to 75 years.
80 76
72
69
70
58
60
% of Consumers
50
40 40
40
31 30
30
24
22
18
20 17 16
12 12
1010
9 8 8 8
10 7 7 5
4
0 0
0
5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75
Age Group
From the above graph, it is evident that, across all age groups, a major portion of
consumers liked the product. Further opinions received from different age groups could
be compared and analysed as follows:
• Ranging from ages 5 to 55, it can be noticed that, in every age group, more
than 50% of the consumers have liked the product.
• In the age group of 5 years to 15 years, 87% of the consumers have liked the
products. The main reason behind this is children are fond of juices and sweet
49
substances. They crave to have anything that is cold and the product when
sampled, was made sure was cold and the remaining 13% is divided between
average and disliked. There were no consumers who gave mixed reactions.
This could be due to the reason that children cannot come up with good
enough reasons as to why they like or dislike a product. They just give their
opinion.
50
The following graph is a representation of the comparison and analysis of the feedback
given by the consumers based on the gender they belong to. This kind of an analysis is
important due to the fact that males and females have different tastes, likes and
dislikes especially when it comes to choice of foods and beverages.
70
60
50
% of Consumers
40
30
20
10
67 65 10 13 14 15
9 7
0
Liked Average Mix Reaction Disliked
Opinion
Male Female
On analysis of the above graph, it can be noted that, the gender of the consumer has
not made an impact on the reaction obtained from the consumers. Males and females
have shown the same kind of reaction towards the product. About 70% of the both
males and females liked the product. This may be due to the fact that Orange juice is
a universal favorite and people across the world, across both genders love having
orange juice. Around 20% of both males and females gave an average rating to the
products and the rest were confused.
51
The reasons given by consumers for having liked the product were:
• It is not bitter like other readymade juice products that are available in the
market.
• It has got real pulp in it and when one can feel the pulp and this makes the
drink tastier.
• It is a non-carbonated drink.
The reasons given by consumers for having disliked the product were:
• It is too sweet.
52
• It is not as sweet as natural orange juice.
• It was a product of the Coca-Cola Company and ever since the controversy,
consumers are a little apprehensive about the products of that company.
• It is not exactly a drink for adults; the taste is more to suit children rather than
adults.
The above points under categories liked and disliked are contradictory to each other.
Both categories have few same points like the bitterness and the sweetness of the
juice. This contradiction arises due to the following reasons:
5.7: SUGGESTIONS
53
Taking the above analysis into consideration, the following points can be regarded for
further marketing of the product:
• Advertisements should target the entire family, mainly because it has been
observed that irrespective of age and gender, more than 75% of the people
have liked the product and look forward to buy it again. Advertisements should
highlight the main features of the product that is the existence of pulp (which is
already made prominent in Advertisements); it should lay emphasis on the
health and nutrition value of the product and also on the fact that it is as good
as fresh fruit juice.
• Due to the current prices, an eyebrow raiser for some, the product could be
sold in packs of 2 or more and there could be a price reduction.
• At Modern Trade Outlets, where shoppers buy in bulk, Minute Maid Pulpy
Orange could be given away free, if the customer buys goods worth more than
a certain price line. This strategy is already being carried out at the Food World
outlets. It could be introduced even at Fab Mall, Subhiksha, Spencer’s Daily, Big
Bazaar etc.
• New flavors can be introduced into the market as early as possible because
around 30% of the consumers were eager to know if the drink would come in
more flavors and another 10% of the consumers did not like Orange juice so
they were anticipating the probable launch of other flavors.
• Smaller packs of Minute Maid Pulpy Orange like tetra packs of 200-300 ml can
be introduced as, when a customer wants a small amount of the drink just to
quench his thirst for that moment, he would not want to buy a bottle
containing 400 ml or 1litre of the juice. Therefore, smaller packs of the product
do come in handy.
CHAPTER 6: CONCLUSION
_______________________________________________
54
The Sampling activity was a good first step into the area of Marketing and Sales. It
gave good amount of exposure mainly because after being trained, trainees were
given an opportunity to carry out the process ourselves. It helped in developing a
considerable amount of convincing skills, because, it took a lot of it to convince the
store managers to give us cooler space to cool the product for 2 hours and even more
to convince the customers into tasting the product and to get reviews from them. A
good understanding of the market was accomplished as around 700 people were
spoken to and that group consisted of a variety of customers. This even helped in the
polishing of communication skills, a must-have to survive and make it big in the
present world. It even gave a good understanding of behavior of customers when
placed in different situations. It was a good opportunity to work on the skill of
patience, as a large number of customers were to be dealt with. It helped in
developing the kind of relations one needs to uphold in the corporate world and it
helped in building up the right attitude.
As all the points in the above mentioned paragraph, are the must-have skills for
anyone in the field of Marketing and Sales, the training period was a good experience
and a good stepping stone into the real business world.
As a future line of research, the Marketing and Sales Department at HCCBPL could
offer projects like:
APPENDIX
55
Total number of Consumers sampled and their opinion
Age
Groups Gender Opinion
M F T Liked Average Mix Reaction Disliked
M F T M F T M F T M F T
5 to 15 26 19 45 23 16 39 2 2 4 0 0 0 1 1 2
15 to 25 42 28 70 35 18 53 3 2 5 4 8 12 0 0 0
25 to 35 86 108 194 56 78 134 6 8 14 6 10 16 18 12 30
35 to 45 93 96 189 65 70 135 10 6 16 6 10 16 12 10 22
45 to 55 36 54 90 21 31 52 5 4 9 5 4 9 5 15 20
55 to 65 18 40 58 8 15 23 0 3 3 6 12 18 4 10 14
65 to 75 30 20 50 12 8 20 4 2 6 5 4 9 9 6 15
331 365 696 220 236 456 30 27 57 32 48 80 49 54 103
Key
M Male
F Female
T Total
L Liked
A Average
MR Mixed Reaction
D Disliked
56
Table for Graph 3
Liked 456
Average 57
Mix Reaction 80
Disliked 103
57
Table for Graph 5 (Rounded Up %ages)
Gender Liked Average Mix Reaction Disliked
Male 67 9 10 14
Female 65 7 13 15
DATA SOURCES:
_______________________________________________
58
• http://www.cybernoon.com
• http://news.bbc.co.uk
• http://www.thecoca-colacompany.com
• http://www.coca-cola.com
• http://www.ko.com
• http://www.hoovers.com
• http://www.google.com
• http://www.wikipedia.org
• Monthly circular for the month of March, Hindustan Coca-Cola Beverage Private
Limited
59