COCA-COLA INDIA PVT. LTD.

create and share beverages to energize, relax, nourish, hydrate and enjoy.

VISION,MISSION & VALUES

Growth, Leadership & Sustainability Mission At Coca-Cola India We strive to refresh the world, inspire moments of optimism & happiness, create value & make a difference.

Introduction
Coca Cola Sales & Distribution is termed asCoca Cola Systems that comprises of the Co. Itself & 300 Bottling Partners all over the world. Manufactures and sells concentrate and beverage bases. Customer to Ultimate Consumer: the grocers, small retailers, hypermarkets, restaurants, convenience stores and millions of other businesses that are the final points of distribution in the Coca-Cola system. The Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; 13 Authorized Bottling Partners of The Coca-Cola Company These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make their beverages available to consumers across India.

Products they serve...

Coca-Cola Diet Coke Thumsup Sprite Fanta Limca Maaza Maaza Milky Delite Minute Maid Pulpy Orange Minute Maid Nimbu Fresh Burn Kinley Water Kinley Soda Nestea Schweppes Georgia Gold

Coca Cola India

25000 Employees( 1,50,000 indirect employees) 500 Managers 60 Manufacturing Locations 27 COBO( Uniformly located) 28 FOBO( more in Northern & Western Region) 21 Contract Packers Supporting Distribution Network-7 Lacs Retail Outlet & 8000 Distributors

Business Plan Model

Coca Cola India

Manufactures Concentrate, Beverage base and Syrup Manufacture Finished Bottles/Cans/Fountain Syrup Grocers, Small Retailers, Hypermarkets, Restaurants, Convenience Stores The Ultimate Consumer

Regional Bottlers(C OBO/FOB O)

Customer s

Consumer s

Distribution Chain: Production---Plant Warehouse---Depot Warehouse--DistributionWarehouse---Retail Stock ---Retail Shelf --Consumer

Manufacturing Plant

Process / Operations :

Packed & Resent to the stores

The Distribution Channel at Coca-Cola & CustomerConsumer relationship

Retailers
Supermarkets, Kiosks Airlines

Consumers

Bottler

Clubs, Bars

Restaurants, Hotels
Vending machines

Innovative Distribution Strategies with 'RED' Approach

Deals with the distinctive distribution strategies of CocaCola India (CCI) for the rural and urban market segments in India; In urban areas, it distributes products directly from bottling plants to retailers. However, owing to lack of proper infrastructure and difficult access to the remote villages, it modified its distribution chains and adopted the three-tier hub and spoke distribution model, to penetrate into the rural areas and increase its sales. CCI adopted Right Execution Daily (RED) strategy for effective execution of its distribution mainly in urban areas, which boosted the sales of the company.

FINANCIAL HIGHLIGHTS

Brand Share

Market Share in 2011

Others, 11.80%

Market Share in 2010

Others, 11.2%

Cadbury 16.4%

Coke, 41.90%

Cadbury 15.30%

Coke, 42.70%

Pepsi, 29.90%

Pepsi, 30.80%

Market Share in 2009

Others, 11.10%

Market Share in 2008

Others 11%

Cadbury 15%

Coke, 42.80%

Cadbury 14.90%

Coke, 42.90%

Pepsi, 31.10%

Pepsi, 31.20%

Sale of Cases of Companies (in mlns)

2011

3947

2815.3

1541.5

1112.3

2010

4107.6

2960.4

1471.2

1081.8

2009

4241.1

3082.8

1491.3

1104.6

2008
0

4357.5

3167.5

1512.9

1119.9

2000

4000
COKE PEPSI

6000
CADBURY

8000
OTHERS

10000

12000

Sale of cases of brands(in mlns)

1800 1600 1400 1200 1000 800 600 400 200 0

No. of cases

Coke

Pepsi 1113.2 1059.8 990.9 936.4

2008 1760.1 2009 1707.3 2010 1664.6 2011 1598

Diet Coke 998 990 960.3 936.3

Diet Pepsi 607 594.9 550.3 525.5

Dew 666.3 659.6 653 630.1

Sprite 575.2 553.3 536.7 515.2

Cadbury 588.2 585.9 586.1 575.9

Competition Analysis
BRANDS(Top 7) Coke Pepsi
Diet Coke Diet Pepsi Dew Sprite

2011 17.0 9.9

9.9 5.6 6.7 5.5 6.1

2010 17.3 10.3

10.0 5.7 6.8 5.6 6.1

2009 17.2 10.7

10.0 6.0 6.6 5.6 5.9

2008 17.3 11.0

9.8 6.0 6.6 5.7 5.8

Cadbury (dr. pepper)

Profitability & Revenue Analysis (2011 Results)

Full-year reported EPS of $3.69 Full-year reported net revenues grew 33% Full-year reported operating income grew 20% In the Rs 11,000-crore soft drinks market, PepsiCo reported 17% volume growth during April-June while Coca-Cola grew 8%.

Coke Rural Initiatives

Competitive pricing Increase in the number of outlets

Bridging the gap between soft drinks and other local options Doubled the spend on Doordarshan Tapping of local forms of entertainment Huge investments in infrastructure Result: 80% of new coke drinkers accounted by rural market

Tremendous growth for coke in rural markets

Rural Marketing Strategy

AvailabilityCentral distribution system not feasible for rural areas; Adopted hub and spoke distribution system; All-possible means of transportation used for transporting the stock; Affordability300 ml bottles were not popular; Price of Rs 10 was considered as too high; Chota Coke was introduced in 200 ml bottles and priced at Rs 5 Awareness Hoardings were put and also name Coca Cola was painted on the compound;

Distribution Strategy
Hit list of high potential villages from various districts Appointment of Hubs Offering of full-load supplies Fixed journey plans on a weekly basis

Recommendations :
It is believed that RGB(refill glass bottle) should be replaced with Pet bottles of same size because it will solve out all the problems which are as follow : For Retailers
Breakage No empty bottles required to fill carat No extra space required to keep the carat outside shop

For Company
To carry the empty carat back to manufacturing unit to refill again Cost will be reduced Pet bottle are cheaper than Glass bottle Process of rinsing and washing RGB bottle again will be eliminated which will lead to less wastage of water.

Coke should maintain good relationship with vendors, solving any problem with in no time should be done.

 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.
New flavors can be introduced into the market as early as possible consumers were eager to know if the drink would come in more flavors, health drinks like milk proteins content soft drink can be invented Younger generation are more interested in soft drinks ,so new openings in institutional areas should be increased Use some proper methodology to provide the information about the schemes directly to the retailers. Company has to try to sort out the personal misunderstandings between distributors and retailers.

RECENT HIGHLIGHTS

Coca-Cola India partners with ISB to launch the Coca-Cola ISB Retail Academy

To educate and train middle level professionals in the retail sector in India and takes forward the company's commitment to strengthen the dynamic sector following its very successful retail training program Parivartan

BEST BOTTLER AWARD

Brindavan & Ludhiana Beverages Win Top Honors at the All India Bottler Conference for Franchise Bottlers. Coca-Cola India conferred the Lakshya Awards Excellence in Bottling to Brindavan and Ludhiana Beverages for excelling in the first and second quarters respectively. The conference was Based on the theme, Execute, Accelerate & Grow.

The Fact is....

THEY SELL 1.6 BILLION DRINKS EVERYDAY