Preface

This project, “studying outlet mapping of a major soft drink company” in Nasik,
Paanchvati region was undertaken for duration of two months as a part of learning
process during the summer training at Hindustan Coca Cola Beverages Pvt. Ltd.
Mumbai

The main objective of this study lies in understanding the organization, studying,
understanding the marketing channels of the company and to correct its distribution
activities as well.

Deep learning regarding channel efficiency and understanding the market structure,
identifying potential outlets and practical survey with Mr. Gajendra (Market
Developer) was also undertaken.

This project is regarding the distribution effectiveness, to study the impact of it on

sales and how the company understands the market using different strategies. The
project was undertaken for a period of sixty days and was carried out within the limits
of Panchvati, Nasik.

During the entire course of the project, a total of 130 outlets were surveyed for
analysis regarding distribution effectiveness & channel mapping.

In the first part of the project, a survey of selected outlets was conducted by taking
interview of outlet owners or managers. Based on the information gathered through
the outlet managers or owners service and distribution improvement, competitive
position in the different areas and scope for the market expansion is studied.

It was an excellent experience while working with Hindustan Coca Cola Beverages
Pvt. Ltd. I learnt about the environment and culture of the organization, its
distribution structure; which I feel will help me in my future endeavors in life.

This report consists of five chapters. The first chapter deals with “Introduction of
project, Essentials of Project study”. The second chapter deals with Project objectives,
Research Methodology, and Project scope & limitations to the research or data which
is collected at that time. The third chapter deals with Company Profile and Product
Profile. The fourth chapter deals with Findings, Analysis and Interpretation of data
collected from various outlets. The fifth chapter deals with Conclusion of project &
with Recommendations and Annexure having Questionnaire, and Bibliography etc.

1
 CHAPTER 1:
INTRODUCTION

2
 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.

3
1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG) 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 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

4
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)

The FMCG sector consists of the following categories:

 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.
 Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household
cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and
Mosquito repellents, Metal polish and Furniture polish; the major players being;
Hindustan Lever Limited, Nirma and Ricket Colman.
 Branded and Packaged foods and beverages- Health beverages, Soft drinks,
Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, 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

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT

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.
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:
 Alcoholic, non-alcoholic and sports beverages
 Natural and Synthetic beverages
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
 Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.

5
 If the behavioural patterns of consumers in India are closely noticed, it could be
observed that consumers perceive beverages in two different ways i.e. beverages are a luxury
and that beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make
the industry more affordable. Four strong strategic elements to increase consumption of the
products of the beverage industry in India are:
 The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
 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.
 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.
 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

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.

6
 CHAPTER 2:
OBJECTIVE
HYPOTHESIS
RESEARCH METHODOLOGY
SCOPE AND LIMITATIONS

7
2.1 OBJECTIVES OF THE PROJECT

 The main objective of this project is “Mapping of the available marketing

channels of HCCBPL” in Paanchvati region of Nasik

 To find the comfort level of the dealers with the current distribution system

 To find the lacunas in the current distribution system.

 To suggest remedial measures

 Study of soft drink market share by mapping in Paanchvati Nasik.

2.2 HYPOTHESIS:-

I: “Current distribution followed by Coca-Cola is less effective”

II: “Dissonance of the dealers is the main concern for the company”

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2.3 RESEARCH METHODOLOGY

The term Research is composed of two words Re and Search. Re means

again & again, Search means search about new facts. Thus the term Research can be
defined as a careful investigation or enquiry specially to search new facts in any
branch of knowledge. The term Research refers to the systematic method consisting
of enunciating the problems, formulating the hypothesis, collecting the fact or data,
analyzing the facts and reaching certain conclusion either in the form of solution
toward the concerned problem or in certain generalization for some theoretical
formulation.
According to CLIFFORD WOODY, “Research is a careful inquiry or
examination in setting the facts or principle, a diligent investigation to ascertain
something.”

METHODOLOGY
Methodology is the systematic and objective identification, collection
analysis, dissemination, and use of information for the purpose of improving
decision making related to the identification and solution of problem.

During the course of conducting the study the information were gathered
mainly through the primary sources. Conducting field survey by talking to the
individual and the methodology used in the survey was personal observation and
interview with the consumer with the help of questionnaire.

DATA COLLECTION:
The task of data collection begins after a research problem has been defined and
research design has been chalked out. While deciding about the method of data
collection to be used for the study, the research should keep in mind two types of
data viz. Primary and Secondary.

SOURCES OF DATA

a) Primary Data.

b) Secondary Data.

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PRIMARY DATA:

The Primary Data are those, which are collected afresh and for the first time
and thus happen to be original in character.

The observation method is the most commonly used method especially in studies
relating to behavioral sciences.
Questionnaire method is also very widely used in order to give a structure to the
entire study.

SECONDARY DATA:

The secondary Data are those which have been already collected by someone else
and which have already been passed through statistical process.
The Secondary Data regarding the project was given by the company which was
a list of the outlets that were to be visited.

METHODOLOGY ADOPTED FOR RESEARCH

 For this project, the method available was to get enough information through
personal interaction with the outlet owners with the aid of a questionnaire.
The collection of primary data requires considerable time. In this research the
Primary data were obtained by actual working in the market and interacting
with the outlet owners or managers who are involved in the process.

 The secondary data was a list of the outlets that were to be surveyed and was
given by the company.

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2.4 AREA OF RESEARCH
 Panchvati, Nashik
– From Aurangabad Naka till Godavari River & Peth Road, Dhindori Road
Signal till Ram Ghat.
• Krishna Nagar
• Ram Ghat
• Panchvati Circle
• Old Panchvati
• Gurudwara Lane
• Nimani Circle
• Malegoan Stand
• Peth Fata
• Ramwadi

2.5 INCOME GROUP

• Around 70% of the area is covered under middle income group of people.
• 10% is covered by lower-middle or lower income group.
• Only 15% (approx) is marked by higher-middle & higher income group of
people.
• 5-7% of the area is unmarked.
Source: Internal (HCCBPL)

2.6 TYPES OF LAYOUT

1. E & D Outlet
2. Grocery Store(Kirana)
3. Medical
4. Pan & Beedi Shops
5. Tea Stalls
6. Convenience Store

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2.7 SCOPE:-

A Training Program of 60 days in any organization provides information to all

students like…

i) Current organisation work-culture

ii) Industry practical knowledge.

iii) Gives Professional touch.

iv) Better awareness about market competition.

v) Get chance to face different types of customers and tackle with different
situation.

2.8 Product Range:

The entire product range that the company has was taken into consideration for the
study. This includes Coca Cola, Diet Coke, Thump Up, Sprite, Limca, Fanta and
Kinley Soda in the carbonated section and Maaza and Minute Maid Pulpy Orange in
the juices section.

2.9 LIMITATIONS:-

i) Organization does not provide strategic information.

ii) Organization does not give time and attention to the Management Trainees.

iii) Time provide by institute i.e. 60 days is not sufficient to get practical
knowledge.

iv) Seasonality was the biggest threat because the duration of the project was in
the summer. This is peak selling time for the company on the other hand in the
rainy season the picture is different. That affects the sample size and also the
sale.

v) Finding and analysis was for the specific area (Routes) only.

vi) During the project we have to trust the dealers and their perception actual
situation may vary.

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 CHAPTER 3:
THE COCA-COLA COMPANY

13
3.1: HISTORY

Coca-Cola was first introduced by

John Syth Pemberton, a pharmacist, in
the year 1886 in Atlanta, Georgia when
he concocted caramel-coloured 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

14
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 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.

15
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.
 TEAMWORK: To unite for greater strength and work collectively as a group
towards the achievement of common goals.
 OWNERSHIP: To think and act like owners at all levels; to have decisions taken at
the lowest appropriate level.
 ACCOUNTABILITY: To be individually and transparently accountable to our
colleagues for delivering agreed targets and goals.

3.2.2: MISSION
To create consumer products, services and communications, customer service and bottling
system strategies, processes and tools in order to create competitive advantage and deliver
superior value to;
 To Refresh the World... In body, mind, and spirit
 To Inspire Moments of Optimism... Through our brands and our actions
 To Create Value and Make a Difference... Everywhere we engage.
 Consumers as a superior beverage experience
 Consumers as an opportunity to grow profits through the use of finished drinks
 Bottlers as an opportunity to grow profits in volumes
 Bottlers as a trademark enhancement and positive economic value added
 Suppliers as an opportunity to make reasonable profits when creating real value-added
in an environment of system-wide team work, flexible business system and
continuous improvement
 Indian society in the form of a contribution to economic and social development.

16
3.2.3: VISION FOR SUSTAINABLE GROWTH
To provide exceptional strategic leadership in the Coca-Cola India System resulting in
consumer and customer preference and loyalty, through Coca-Cola’s commitment to them
and in a highly profitable Coca-Cola Corporate branded beverages system.

 PROFIT: Maximizing return to shareowners while being mindful of our overall

responsibilities.
 PEOPLE: Being a great place to work where people are inspired to be the best they
can be.
 PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate
and satisfy peoples’ Desires and needs.
 PARTNERS: Nurturing a winning network of partners and building mutual loyalty.
 PLANET: Being a responsible global citizen that makes a difference.

FIGURE 1: VISION FOR SUSTAINABLE GROWTH

3.2.4: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and actions by
continually improving our processes…Every time.”

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3.3 HINDUSTAN COCA-COLA BEVERAGES Pvt. Ltd. (HCCBPL)

3.3.1: ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather
than reveals its formula to the Government and reduces 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 favour of resident
shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing

locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling
Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture
process of a range of products for the company. It also has a supporting 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.

18
 “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.

FIGURE 2: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

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Coca-Cola Timeline
 1886 – Coca-Cola invented
 1923 – Woodruff’s initiatives of Personal Training, Better Service and Quality
Products introduced
 1929 – Foreign Sales Group formed for global expansion
 1945 – Coca-Cola established as a global brand
 1952 – Coca-Cola was introduced in India
 1960 – Fanta and Sprite introduced
 1970 – Focus on marketing
 1980 – The Coca-Cola system stabilized
 1993 – Coca-Cola re-enters India
 2004 – E. Neville Isdell rolls out MFG(Manifesto For Growth)

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3.3.2: ORGANIZATION STRUCTURE OF COCA-COLA

FIGURE 3: ORGANIZATION STRUCTURE IN COCA-COLA

FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, India

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FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

FIGURE 6: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

22
3.3.3: MANUFACTURING PROCESS AT HCCBPL

FIGURE 7: MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:
 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.
 On the other hand, simultaneously, the returnable glass bottles are depalletised,
inspected and washed for the purpose of filling in the final product in it.
 The product is finally filled in the bottles, crowned (in case of RGB), labelled and
cased in order to be sent into the warehouse for distribution.

23
3.3.4: BUSINESS PLAN MODEL AT HCCBPL

FIGURE 8: BUSINESS PLAN MODEL

“An efficient distribution network in FMCG has a base of a well managed production
capacity”

24
3.4 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.
A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse ---
Retail Stock --- Retail Shelf --- Consume

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.

Figure 9: Distribution Chain at HCCBPL

25
3.4.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:
 Key Accounts: The customers in this category collectively contribute a large chunk
of the total sales of the Company. It basically consists of organizations that buy large
quantities of a product in one single transaction. The Company provides goods to
these customers on credit, payments being made by them after a certain period of time
i.e. either a month of half a month.
Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

 Future Consumption: This route consists of outlets of Coca-Cola products, wherein

a considerable amount of stock is kept in order to use for future 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 neighbouring areas are catered to. The consumption period is not taken
into consideration in this particular route.

26
3.4.2: DISTRIBUTION SYSTEM
 Direct distribution: In direct distribution, the bottling unit or the bottler partner has
direct control over the activities of sales, delivery, and merchandising and local
account management at the store level.

 Indirect distribution: In indirect distribution, an organization which is not part of the

Coca-Cola system has control on one or more of the distribution elements (Sales,
delivery, merchandising and local account management)

 Merchandising: Merchandising means communication with the consumer at the

point of purchase to convey product benefit, value and Quality. Sales people and
delivery personnel both have this responsibility. In certain locations special teams
who go into business locations to specifically merchandise our products.

3.4.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments:
 Distribution Department: It appoints distributors and establishes a distribution
network, processes approved sale orders and prepares invoices, arranges logistics and
ship products, co-ordinates with distributors for collections and monitors distribution
stocks and their set-up.

 Finance Department: It checks credit limits and approves sales orders in compliance
with the credit policy followed by the firm, records collections from distributors,
periodically reconciles outstanding balances from distributors, obtains balance
confirmation from distributors and follows up outstanding balances.

 Shipping or Warehousing Department: It dispatches goods as per approved by

order, ensures that stocks are dispatched on a FIFO basis, ensures physical control
over load out area and updates warehouse stock records in a timely manner.

27
3.5 SWOT ANALYSIS OF HCCBPL

28
3.6 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. The key competitors in the industry are as
follows:

 PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's # 2, carbonated soft drink maker. The company's soft
drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only
beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and
Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea.
PepsiCo and Coca-Cola hold together, a market share of 95% out of which 60.8% is
held by Coca-Cola and the rest belongs to Pepsi.

29
 Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which
has been introduced into the market by Nestle provides a considerable amount of
competition to the products of the Company. Iced tea is one of the closest substitutes
to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks.
The flavoured milk products also have become substitutes to the products of the
company due to growing health awareness among people.

 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 products give a strong competition to
Maaza and the latest product Minute Maid Pulpy Orange.

 Parle Agro

30
3.7 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:

· In the Cola Section:

31
· In the Lemon section:

· In the Orange section:

32
· In the Juice section:

· In the Soda Water and Bottled Mineral Water section:

33
 Chapter 4:
DATA PRESENTATION
&
DATA ANALYSIS

34
Graph No: 4.1 [Type of Monopolies]

Type of Monopolies

37%
7% Shared
11% Coke
Pepsi
45%
Virgin

 There were total 130 outlets surveyed for checking the service provided by
the distributor in the Panchvati region of Nasik.

 Of these, monopoly outlets details is as under:

Table No: 4.1 [Type of Monopolies]

Particulars Number
Coke 59
Shared 48
Pepsi 14
Virgin 9
Total 130

Graph No: 4.2 [Visi-Coolers]

% of Visi Coolers
Coke Pepsi
39%

61%

35
4.1 SERVICE QUALITY PROVIDED BY THE DISTRIBUTOR

Following table and graph gives the information about the quality & efficiency in
service provided by the distributor and the pre-seller to the retailers.
 It is classified as very good, good, ok, bad & very bad.
[For questions 1, 2 & 3:
1 – Very Good
2 – Good
3 – Ok
4 – Bad
5 – Very Bad]

Analysis is tabulated and graphical represented are as follows.

Table No: 4.2 [Service Quality provided by the Distributor]

Particulars Service Percentage (%)

Quality
1. Very Good 13 10
2. Good 47 36
3. Ok 22 17
4. Bad 21 16
5. Very Bad 4 3
Total 107

36
Graph No: 4.3 [Service Quality provided by the Distributor]

Interpretation:

1. 10% of the retailers are very well satisfied with the service provided by the
distributor.
2. 36% of them feel that the quality of service provided is good.
3. 17% of the retailers feel satisfactory enough by the quality of service provided.
4. 16% of the retailers are not happy with the service provided to them.
5. 3% of them feel completely dissatisfied by the service of the distributor.
6. Remaining 18% are either having Pepsi monopoly or they have not yet started their
outlet for any beverages (i.e. they are virgin outlets)

37
4.2 SERVICE QUALITY PROVIDED BY THE PRE-SELLER

Table No: 4.3 [Service Quality provided by the Pre-Seller]

Particulars Service Percentage (%)

Quality
1. Very Good 5 4
2. Good 27 21
3. Ok 36 28
4. Bad 30 23
5. Very Bad 9 7
Total 107

Graph No: 4.4 [Service Quality provided by the Pre-Seller]

Interpretation:
1. Only 4% of the retailers are very well satisfied with the service provided by the pre-
seller.
2. 21% of them feel that the quality of service provided is good.
3. 28% of the retailers feel that the quality of service provided by the pre-seller is
average.
4. 23% of the retailers are not happy with the service provided to them.
5. 7% of them feel completely dissatisfied by the service of the distributor pre-seller.
6. Remaining 18% are either having Pepsi monopoly or they have not yet started their
outlet for any beverages (i.e. they are virgin outlets)

38
4.3 SERVICE EFFICIENCY PROVIDED BY THE DISTRIBUTOR

Table No: 4.4 [Service Efficiency provided by the Distributor]

Particulars Service Percentage (%)
Quality
1. Very Good 8 6
2. Good 31 24
3. Ok 33 25
4. Bad 25 19
5. Very Bad 10 8
Total 107

Graph No: 4.5 [Service Efficiency provided by the Distributor]

Interpretation:
1. 6% of the retailers are very well satisfied with the service provided by the distributor.
2. 24% of them feel that the quality of service provided is good.
3. 25% of the retailers feel satisfactory enough by the quality of service provided.
4. 19% of the retailers are not happy with the service provided to them.
5. 8% of them feel completely dissatisfied by the service of the distributor.
6. Remaining 18% are virgin outlets.

39
4.4 FREQUENCY OF SERVICE PROVIDED BY THE DISTRIBUTOR

Table No: 4.5 [Frequency of Service provided by the Distributor]

Particulars Service Percentage

Frequency (%)
 Twice a week 56 43
 Weekly 27 22
 Fortnightly 7 5
 Infrequent 17 12
 Uncovered Outlets 23 18
Total 130

Graph No: 4.6 [Frequency of Service provided by the Distributor]

Interpretation:
 The above graph shows that the frequency of service for majority of the retail
outlets is very good with 43% covering 56 of 130 outlets. This means that the
majority of the retail outlets in the Panchvati area of Nasik are filled with Coca-
Cola stock twice every week.
 This is followed by 21% of the outlets which are served weekly.
 However, the number of uncovered outlets is 23, which constitute 18% of the
entire Panchvati region. This is quite a large number, which the distributor will
have to take note of inorder to improve his business.

40
4.5 SCHEMES PROVIDED BY THE DISTRIBUTOR

Table No: 4.6 [Schemes provided by the Distributor]

Particulars Service Percentage

Frequency (%)
 Yes 27 21
 No 41 31
 Occasionally 39 30
 Uncovered Outlets 23 18
Total 130

Graph No: 4.7 [Schemes provided by the Distributor]

Interpretation:
This shows that the distributor does not provide enough schemes on a regular basis to the
retail outlets.
 31% of them do not receive any schemes, and 30% receive the schemes
occasionally.
 Hence, only 21% of the retail outlets are well served which fetches them the
majority of the business.

41
4.6 TIMELY AVAILABILITY OF REQUIRED ORDER

Table No: 4.7

Particulars Service Percentage
Frequency (%)
 Yes 55 42
 No 52 40
 Uncovered Outlets 23 18
Total 130

Graph No: 4.8

Interpretation:
 42% of the outlets receive order as per required, whereas 40% of them do not
receive orders as per required.
 There is a good potential scope of improvement by the distributor in the areas of
uncovered outlets (18%) as well as those outlets which do not get the order as per
requirement (40%)

42
4.7 MONTHLY SALES

Graph No: 4.9.1

Interpretation:
 The sales for coca-cola products exceed the same for those of pepsi products.
 However, the sale of coca-cola products is low as compared to its sale in the entire
Nasik district which is approx. 78% (Source: Survey report by AC Nielsen)

Graph No: 4.9.2

Monthly Stock – May’09(in crates)

43
4.8 DISPLAY & MERCHANDISE PROVIDED BY THE DISTRIBUTOR

Table No: 4.8 [Display & Merchandise provided by the Distributor]

Particulars Display Percentage

Facilities (%)
 Yes 34 26
 No 25 19
 Occasionally 48 37
 Uncovered Outlets 23 18
Total 130

Graph No: 4.10 [Display & Merchandise provided by the Distributor]

Interpretation:
This shows that the distributor does provide enough schemes on a regular basis to the retail
outlets.
 26% of them do receive sufficient display facility & merchandise; and also, 37%
receive the schemes occasionally.
 Only 19% of the retail outlets are not well served.

44
4.9 GRIEVANCE REDRESSED BY THE DISTRIBUTOR

Table No: 4.9 [Grievance redressed by the Distributor]

Particulars Display Percentage

Facilities (%)
 Yes 25 19
 No 38 29
 Only if Pressurized 44 34
 Uncovered Outlets 23 18
Total 130

Graph No: 4.11 [Grievance redressed by the Distributor]

45
4.10 OTHER PARTY PURCHASES

Table No: 4.10 [Other party purchases]

Particulars Display Percentage

Facilities (%)
 Yes 4 3
 No 92 71
 Sometimes 11 8
 Uncovered Outlets 23 18
Total 130

Graph No: 4.12.1 [Other party purchases]

Graph No: 4.10.2 [Other party purchases]

46
 Chapter 5:
CONCLUSION
&
SUGGESTION

47
5.1 CONCLUSION
The conclusions drawn from the project study are as follows:

 There were total 130 outlets surveyed for checking the service provided by the
distributor in the Panchvati region of Nasik.
Of these, monopoly outlets details are as under:
Particulars Number
Coke 59
Shared 48
Pepsi 14
Virgin 9
Total 130

 The sales for Coca-Cola products exceed the same for those of Pepsi products.
However, the sale of coca-cola products is low as compared to its sale in the
entire Nasik district which is approx. 78% (Source: Survey report by AC Nielsen).

 Majority of the retail outlets receive sufficient display facility & merchandise.

 42% of the outlets receive order as per required, whereas 40% of them do not receive
orders as per required.
There is a good potential scope of improvement by the distributor in the areas
of uncovered outlets (18%) as well as those outlets which do not get the order as per
requirement (40%).

 31% of them do not receive any schemes, and 30% receive the schemes occasionally.
Only 21% of the retail outlets fetch Coca-cola the majority of the business.
Hence, there is a tremendous scope for the company to progress in this area.

 The frequency of service for majority of the retail outlets is very good with covering
56 of 130 outlets. Majority of the retail outlets in the Panchvati area of Nasik (approx.
43%) are filled with Coca-Cola stock twice every week.
However, the number of uncovered outlets is 23, which constitute 18% of the
entire Panchvati region. This is quite a large number, which the distributor will have
to take into account inorder to improve his business.

48
 Approx 60% of the retailers are satisfied with the service provided by the distributor
(Gaikhe Sales) in Panchvati area of Nasik.

 28% of the retailers feel that the quality of service provided by the pre-seller is
average. Also, approx. 30% of the retailers are not satisfied by the service provided by
the retailers.
Around 18% of the retail outlets form a part of either Pepsi monopoly or that
are not served at all, from a part of the pre-sellers duty to convert them into coca-cola
monopoly or shared outlet.

 But the overall efficiency of the distribution in the Panchvati region of coca-cola
products is hampered due to the fact that it has a sale of 68% as compared to its sale
in the entire Nasik district which is approx. 78% (Source: Internal Source as well as
survey report by AC Nielsen)

49
5.2 RECOMMENDATION
We can sum the recommendations in brief as follows:

 Communications should be improved by fulfilling the demand of product by

company. In the field, sales persons work independently and away from the office.
Good communication requires interaction between those preparing and those
receiving reports.

 Company should make plans and impart training to the salesperson for better their
performance.

 Aggressive Marketing by market developer for increasing the sales volume.

 Regular visit to distributors for better co-ordination.

 Improve the market share by:

o providing efficient & effective distribution
o catering to busy retailers atleast 3 times a week
o widening the region(i.e. area of sales)

 Company should adhere to and implement the customers’ suggestions and complaints
about products, service policies, price changes, advertising, etc.

 Increase in the number of sales vehicles.

 Provide better schemes & services inorder to gain market share.

50
ANNEXURES

51
ANNEXURE 1: QUESTIONNAIRE 1

Name of the Shop: ____________________________________________.

Location: ______________________. Shop Code: ___________________.
Type of Monopoly: _____________. Visi – Cooler Status: CK/ PC
______________________________________________________________________________________________________________________

Rating Scale:
(1 – Very Good; 2 – Good; 3 – Ok; 4 – Bad; 5 – Very Bad.)
Particulars 1 2 3 4 5
1) How is the service provided by the
distributor?
2) How is the service provided by the
pre-seller?
3) How is the efficiency of the
delivery by the distributor?

4) What is the frequency of the delivery?

Twice a Week Weekly
Fortnightly Infrequent

5) Does the distributor give good schemes?

Yes No Occasionally

6) Do you get the order as per your requirement?

Yes No

7) What are your sales for Coca-Cola products for the month of May’09(in Rs.)?
300 – 700 700 – 1100
1100 – 1500 1500 & above

8) What are your sales for competitors’ products (viz. Pepsi) for the month of May’09(in
Rs)?
0 – 400 400 – 800
800 – 1200 1200 & above

52
9) Does the distributor provide you with display facilities such as banners, hoardings,
menu, cooler, racks, etc?
Yes No Occasionally

10) Does the distributor respond to your grievances, if any, in a timely manner?
Yes No Only if Pressurised

11) Do you approach any other party (retailers, malls, etc.) for your purchases?
Yes No Sometimes

12) If yes, whom do you approach? (in relation to question no. 11)
Other Retailers Malls
` Sub – dealers Others

Thank You

53
ANNEXURE 2: QUESTIONNAIRE 2

54
ANNEXURE 3 – GOOGLE MAPS

55
 GLOSSARY OF TERMS

Abbreviation Acronym
HCCBPL Hindustan coca cola beverages Pvt. Ltd.
E&D Eating and Drinking
RGB Returnable Glass Bottle
PET Polyethylene Terephthalate
CK Coke
PC Pepsi
SH Shared
VG Virgin

56
 BIBLIOGRAPHY

INTERNET:

• http://www.coca-cola.com/index.jsp
• http://www.thecoca-colacompany.com
• http://www.ko.com
• http://www.hoovers.com
• Google-maps
• http://in.nielsen.com/site/index.shtml
• http://www.pepsico.com/Brands/Pepsi_Cola-Brands.html

BOOKS & MAGAZINES:

• Monthly circular for the month of March, April, May and June - HCCBPL
• Kumar, Aaker & Day, Essentials of Marketing Research 2nd Edition
• Kotler Philip & Keller Kelvin , Marketing Management, 12th Edition

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