INTERNSHIP REPORT ON ORGANIZATIONAL STUDY AT

HINDUSTAN COCA-COLA BEVERAGES PVT. LTD

By

Ankit Raj Upadhaya 13MB4857

III SEMESTER MBA

Guide

Prof.Vaishnavi Bhatt

Internship Report submitted to the University of Mysore in partial fulfillment of the

requirements of III Semester MBA degree examinations – 2014

Ramaiah Institute of Management Sciences

#15, New BEL Road, MSRIT Post, M S Ramaiah Nagar
Bangalore – 560054

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 CERTIFICATE FROM THE GUIDE

This is to certify that this Internship Report on Organizational Study at “HINDUSTAN

COCA-COLA BEVERAGES PRIVATE LIMITED” is a bonafide study of Ankit Raj
Upadhaya, carried out under my guidance and supervision.

Place: Bangalore

Date: AUGUST29, 2014

Signature

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 DECLARATION
I hereby declare that this Internship Report on Organizational Study at HINDUSTAN
COCA COLA BEVERAGES Pvt. Ltd. submitted in partial fulfillment of the
requirement for III Semester MBA Degree examinations 2014 of University of Mysore
through Ramaiah Institute of Management Sciences is my original work and not
submitted to any other university. This work has been done under the supervision of
Prof.Vaishnavi Bhatt in Ramaiah Institute of Management Sciences, Bangalore.

Place: Bangalore

Date: 29 August 2014 Signature

13MB4857

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 ACKNOWLEDGEMENT

I would like to thank Mr. Amresh, HOD of Quality Department, Hindustan Coca Cola
Beverages Private Limited (HCCBPL) without whom internship would not have been
possible. I am grateful to him for having taken time off his busy schedule and spoken to
concerned person to get me this internship. My indebtedness also goes to Mr. Anmol Sir
HOD of Production and Maintenance Department HOD, whose constructive guidance,
continuous support, stimulating suggestions and words of encouragement made internship
most fruitful and productive.

I express my gratitude to 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. My heartfelt gratitude also goes out to the staff and employees at HCCBPL for
having co-operated throughout one month of internship period.

I thank my collegeRamaiah Institute of Management Studies and our director Dr.

M.R. Pattabiram and our dean Dr. Y.Rajaram for having given me this opportunity to
put to practice, the theoretical knowledge that I gained from the program. I thank my
guide Prof. Vaishnavi Bhatt for having guided and supported me through the course of
the internship. I take this opportunity to thank my friends and family who have been with
me and offered emotional strength and moral support.

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 CONTENTS

Certificate from the Company ………………………………………………………..

Certificate from the Faculty Guide ……………………………………………………2

Declaration …………………………………………………………………………….3

Acknowledgement …………………………………………………………………….4

1. Introduction………………………………………………………………………..7-8

2. Industry Profile …………………………………………………………………...9-12.

3. Company Profile …………………………………………………………………13-28

4. Organizational Hierarchy ………………………………………………………..29-33

5. Study of Functional Departments ………………………………………………..34-62

Production Department ……………………………………………………………37

Finance Department ………………………………………………………………..61

Marketing Department ……………………………………………………………..51

Human Resource Department ………………………………………………………57

6. My Job Experience…………………………………………………………….....63-65

7. SWOT Analysis ………………………………………………………………….66-71

8. Findings Conclusions and Suggestions…… ...……………………………………72-73

9. Bibliography ………………………………………………………………………..74

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 LIST OF TABLES AND FIGURES
Fig no-1 Soft Drinks In India 10
Fig no-2 Coca-Cola plant Across the 24
country
Fig no-3 Indian Business Model 26
Fig no-4 India Organization Structure 32
Fig no-5 Regional Organization 33
Structure
Fig no-6 Production Department 35
Fig no-7 Department Structure-2 36
Fig no-8 Bottling and Filling Process 40
Fig no-9 Quality Department 43
Figno-10 Maintenance Department 45
Fig no-11 Shipping Department 46
Fig no-12 Stores Department 48
Fig no-13 Supply Chain Department 49
Fig no-14 Marketing Department 50
Fig no-15 Human Resource 57
Department
Fig no-16 Finance Department 61

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 CHAPTER 1
INTRODUCTION

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Introduction

Coca-Cola, the product that has given the world its best-known taste wasborn in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’sleading manufacturer,
marketer and distributor of non-alcoholic beverageconcentrates and syrups, used to
produce nearly 400 beverage brands. Itsells beverage concentrates and syrups to bottling
and canning operators,distributors, fountain retailers and fountain wholesalers. The
Company’sbeverageproducts comprises of bottled and canned soft drinks as well
asconcentrates, syrups and not-ready-to-drink powder products. In addition tothis, it also
produces and markets sports drinks, tea and coffee. The Coca-Cola Company began
building its global network in the 1920s. Nowoperating in more than 200 countries and
producing nearly 400 brands, theCoca-Cola system has successfully applied a simple
formula on a globalscale: “Provide a moment of refreshment for a small amount of
money- abillion times a day.”

The Coca-Cola Company and its network of bottlers comprise the mostsophisticated and
pervasive production and distribution system in the world.More than anything, that
system is dedicated to people working long andhard to sell the products manufactured by
the Company. This uniqueworldwide system has made The Coca-Cola Company the
world’s premiersoft-drink enterprise. From Boston to Beijing, from Montreal to
Moscow,Coca-Cola, more than any other consumer product, has brought pleasure
tothirsty consumers around the globe. For more than 115 years, Coca-Colahas created a
special moment of pleasure for hundreds of millions of peopleevery day.

The Company aims at increasing shareowner value over time. Itaccomplishes this by
working with its business partners to deliversatisfaction and value to consumers through a
worldwide system of superiorbrands and services, thus increasing brand equity on a
global basis. They have nineaims at managing their business well with people who are
stronglycommitted to the company values and culture and providing anappropriately
controlled environment, to meet business goals andobjectives. The associates of this
Company jointly take responsibility toensure compliance with the framework of policies
and protect thecompany’s assets and resources whilst limiting business risks.

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 CHAPTER 2
INDUSTRY PROFILE

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SOFT DRINKS INDUSTRY IN INDIA

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-
Carbonated

Cola Non-Cola Non-Cola

(Source: www.coca-cola.com)

(Fig no-1)
INDIAN BEVERAGES INDUSTRY

Beverages can be classified as non-alcoholic Beverages and Alcoholic Beverages.

 NON ALCOHOLIC BEVERAGES

 MALTED FOOD & HEALTH BEVERAGE INDUSTRY

The malted foods market is composed of two segments brown and white. While the
brown drinks are held to be as energy boosters, the white drinks are regarded as milk
substitutes.
Malted beverages with nutritional attributes control around 70% of the total market and
energy drinks (brown beverages) account for the rest. The malted food drink industry is
dominated by few players. These include brands suchas Horlicks, Complan and Viva,
which are mainly known as white beverages. Boost, Bournvita, Milo and Maltova on the
other hand are classified as brown drink. Smithkline Beecham's Horlicks and Boost
dominate the segment with around 65 % of the market share.

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TEA INDUSTRY
The Rs 86 billion Indian tea industry's leaders have launched a number of instant tea
drinks for the new-generation consumers. Tea has managed to remain on top despite
repeated onslaughts by other beveragesegments largely because of its price advantages.
India has a vast domestic market. About 88 per cent of tea grown in India belongs to CTC
variety. India generally produces black tea. Black tea can be classified into two groups-
Orthodox tea and Crush, Tear and Curl (CTC), a cheaper variety depending on the system
of processing the green leaves.
Consumers in different parts of the country have heterogeneous taste.Dust tea is very
popular in the south and in central India. In the western states, good quality loose tea is
preferred in Gujarat, whereas in Maharashtra, consumers provide a large market to packet
as well as unbranded tea. The eastern states of West Bengal and Orissa and northern
states consume CTC.
The main players in the tea industry are Hindustan Lever, Tata Tea, Williamson Magors,
George Williamson, Harrisons Malayalam, McLeod Russel, Bishnauth Tea, Dhunseri
Tea, Warren tea, AFT Industries. These ten companies took together account for
approximately 75 per cent of the turnover. In the packet / branded tea segment Hindustan
lever is the leader. The major segment of the market is dominated by the unorganized
players. Besides, many local brands have entered the packaged tea segment. There are
about1000 brands of tea in the country and out of which more than 90 % brandsare
represented by the regional players. Regional brands have increased their market share
from about 37 per cent to around 50 per cent.

COFFEE INDUSTRY
Coffee is consumed largely in the southern states. The size of the total packaged coffee
market is 19,600 tonnes or US$ 87 million. The urban rural split in the coffee market was
61:39 in 2000 as against 59:41 in 1995.

CARBONATED BEVERAGES AND JUICES INDUSTRY

The total soft drink (carbonated beverages and juices) market is estimated at 284 million
crates a year or US$ 1 billion. The market is highly seasonal in nature with
consumptionvarying from 25 million crates per month during peak season to 15 million
during offseason. The market is predominantly urban with 25 per cent contribution from
rural areas. Coca cola and Pepsi dominate the Indian soft drinks market.

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ALCOHOLIC BEVERAGES
Alcoholic beverages are growing industry in India. The alcoholic beverages industry in
India is generally divided into two main categories-Industrial Alcohol and Potable
Alcohol. Potable Alcohol segment comprises some categories as Beer, Country Liquor,
Indian Made Foreign Liquor (IMFL) and wine. IFML primarily comprises wine, vodka,
gin, whisky, rum and brandy. United Breweries Ltd, Shaw Wallace, MC Dowell & Co
Ltd (part of the UB Group), RadicoKhaitan, Mohan Meakins, Sula Vineyards, Mount
Shivalik, Seagram India Ltd are among the familiar names in the alcoholic beverage
industry in the country. UB accounts for nearly 40 per cent of total domestic beer sales
and controls close to 50 per cent of the brewing capacity. United Breweries (UB) Ltd, and
Millennium Alcobev Ltd (MABL), a three-way joint venture with UK's Scottish &
Newcastle (S&N) and UB group, now manage almost half of the beer sales in the world's
second most populous market. Strong beer, which has 5% of alcohol content, outsells
mild beer in India and accounts for more than 68 % of the total sales.
The Indian wine market, estimated at 5 lakh cases annually, has witnessed robust 30%
growthover the past few years. The domestic production is having a growth of about 20
per cent.

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 CHAPTER 3
COMPANY PROFILE

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 The Coca-Cola Company
“Coke would rather be long term wiser, than being short term
smarter” AbrahamNinan

Director External Affairs,

Coca-Cola, India

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 COCA COLA ENTERPRISES INC.

TYPE : PUBLIC (NYSE:CCE)

FOUNDED : 1926

HEAD QUARTERS : ATLANTA, GEORGIA, U.S.A.

CHIEF EXECUTIVE OFFICER : MUTHER KENT

CHIEF FINANCIAL OFFICER :GRAY P. FAYARD

INDUSTRY : BEVERAGES

REVENUE : $46.854 BILLION USD(2013)

OPERATING INCOME : $10.228 BILLION USD

NET INCOME : $8.584 BILLION USD

EMPLOYEES : 1,30,600(2013)

(Source: www.coca-cola.com)

HISTORY
1886-1892

It was 1886, like many people who change history, John Pemberton, an Atlanta
pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a fragrant,
caramel-coloured liquid and, when it was done, he carried it a few doors down to Jacobs'
Pharmacy. There, the mixture was combined with carbonated water and sampled by
customers who all agreed this new drink was something special.

Pemberton's bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and wrote it
out in his distinct script. To this day, Coca-Cola is written the same way. In the first year,
Pemberton sold just 9 glasses of Coca-Cola a day.

A century later, The Coca-Cola Company has produced more than 10 billion gallons of
syrup. Unfortunately for Pemberton, he died in 1888 without realizing the success of the
beverage he had created.

Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs Candler
secured rights to the business for a total of about $2,300. Candler would become the
Company's first president, and the first to bring real vision to the business and the brand.

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1893-1904

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

Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways. In
1894, a Mississippi businessman named Joseph Biedenharn became the first to put Coca-
Cola in bottles. He sent 12 of them to Candler, who responded without enthusiasm.
Despite being a brilliant and innovative businessman, he didn't realize then that the future
of Coca-Cola would be with portable, bottled beverages customers could take anywhere.

He still didn't realize it five years later, when, in 1899, two Chattanooga lawyers,
Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler to
bottle and sell the beverage for the sum of only one dollar.

1905-1918

Imitation may be the sincerest form of flattery, but The Coca-Cola Company was none
too pleased about the proliferation of copycat beverages taking advantage of its success.
This was a great product, and a great brand. Both needed to be protected. Advertising
focused on the authenticity of Coca-Cola, urging consumers to "Demand the genuine"
and "Accept no substitute."

The Company also decided to create a distinctive bottle shape to assure people they were
actually getting a real Coca-Cola. The Root Glass Company of TerreHaute, Indiana, won
a contest to design a bottle that could be recognized in the dark. In 1916, they began
manufacturing the famous contour bottle. The contour bottle, which remains the signature
shape of Coca-Cola today, was chosen for its attractive appearance, original design and
the fact that, even in the dark, you could identify the genuine article.

As the country roared into the new century, The Coca-Cola Company grew rapidly,
moving into Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S.

16
territories. In 1900, there were two bottlers of Coca-Cola; by 1920, there would be about
1,000.

1919-1940

Perhaps no person had more impact on The Coca-Cola Company than Robert Woodruff.
In 1923, four years after his father Ernest purchased the Company from Asa Candler,
Woodruff became the Company president. While Candler had introduced the U.S. to
Coca-Cola, Woodruff would spend more than 60 years as Company leader introducing
the beverage to the world beyond.

Woodruff was a marketing genius who saw opportunities for expansion everywhere. He
led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the
Olympic Games for the first time when Coca-Cola travelled with the U.S. team to the
1928 Amsterdam Olympics. Woodruff pushed development and distribution of the six-
pack, the open top cooler, and many other innovations that made it easier for people to
drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge
success, but a big part of people's lives.

1941-1959

In 1941, America entered World War II. Thousands of men and women were sent
overseas. The country, and Coca-Cola, rallied behind them. Woodruff ordered that "every
man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it
costs the Company." In 1943, General Dwight D. Eisenhower sent an urgent cablegram to
Coca-Cola, requesting shipment of materials for 10 bottling plants. During the war, many
people enjoyed their first taste of the beverage, and when peace finally came, the
foundations were laid for Coca-Cola to do business overseas.

Woodruff’s vision that Coca-Cola be placed within "arm's reach of desire," was coming
true from the mid-1940s until 1960, the number of countries with bottling operations
nearly doubled. Post-war America was alive with optimism and prosperity. Coca-Cola
was part of a fun, carefree American lifestyle, and the imagery of its advertising happy
couples at the drive-in, carefree moms driving big yellow convertibles reflected the spirit
of the times.

1960-1981

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After 70 years of success with one brand, Coca-Cola, the Company decided to expand
with new flavours Fanta, originally developed in the 1940s and introduced in the 1950s;
Sprite followed in 1961, with TAB in 1963 and Fresco in 1966. In 1960, The Coca-Cola
Company acquired The Minute Maid Company, adding an entirely new line of business
juices to the Company.

The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola
found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey
and more.

Advertising for Coca-Cola, always an important and exciting part of its business, really
came into its own in the 1970s, and reflected a brand connected with fun, friends and
good times. The international appeal of Coca-Cola was embodied by a 1971 commercial,
where a group of young people from all over the world gathered on a hilltop in Italy to
sing "I'd Like to Buy the World a Coke."In 1978, The Coca-Cola Company was selected
as the only Company allowed selling packaged cold drinks in the People's Republic of
China.

1982-1989

The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much
change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta
became chairman of The Board of Directors and CEO of The Coca-Cola Company.
Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a
strategy he called "intelligent risk taking."

Among his bold moves was organizing the numerous U.S. bottling operations into a new
public company, Coca-Cola Enterprises Inc. He also led the introduction of diet Coke, the
very first extension of the Coca-Cola trademark; within two years, it had become the top
low-calorie drink in the world, second in success only to Coca-Cola.

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola,
the first change in formulation in 99 years. In taste tests, people loved the new formula,
commonly called “new Coke.” In the real world, they had a deep emotional attachment to
the original, and they begged and pleaded to get it back. Critics called it the biggest
marketing blunder ever. But the Company listened, and the original formula was returned
to the market as Coca-Cola classic®, and the product began to increase its lead over the
competition a lead that continues to this day.

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1990-1999

The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup football (soccer), Rugby World
Cup and the National Basketball Association. Coca-Cola classic became the Official Soft
Drink of NASCAR racing, connecting the brand with one of the world's fastest growing
and most popular spectator sports.

And 1993 saw the introduction of the popular "Always Coca-Cola" advertising campaign,
and the world met the lovable Coca-Cola Polar Bear for the first time. New markets
opened up as Coca-Cola products were sold in East Germany in 1990 and returned to
India in 1993.

New beverages joined the Company's line-up, including Power sports drink, children’s
fruit drink and bottled water. The Company's family of brands further expanded through
acquisitions, including Limca, Maaza and Thums Up in India, Barq's root beer in the
U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage brands in more than 120
countries around the world. By 1997, the company already sold 1 billion servings of its
products every day, yet knew that opportunity for growth was still around every corner. In
1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well
into its second century, the Company's goal is to provide magic every time someone
drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to
Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest
comers of the globe, you can still find Coca-Cola. Coca-Cola is committed to local
markets, paying attention to what people from different cultures and backgrounds like to
drink, and where and how they want to drink it. With its bottling partners, the Company
reaches out to the local communities it serves, believing that Coca-Cola exists to benefit
and refresh everyone it touches. From the early beginnings when just nine drinks a day
were served, Coca-Cola has grown to the world’s most ubiquitous brand, with more than
1.4 billion beverage servings sold each day. When people choose to reach for one of The
Coca-Cola Company brands, the Company wants that choice to be exciting and
satisfying, every single time

History of Bottling

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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.

1894 … A modest start for a bold idea

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.

1899 … The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build 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

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States (specifically excluding Vicksburg) -- for the sum of one dollar. A third
Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 … Rapid growth

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.

1916 … Birth of the contour bottle

Bottlers worried that the straight-sided bottle for Coca-Cola 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 in 1915 and was introduced in 1916. The
contour bottle became one of the few packages ever granted trademark status by the U.S.
Patent Office. Today, it's one of the most recognized icons in the world - even in the dark!

1920s … Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S.
Their ideas and zeal fuelled steady growth. Six-bottle cartons were a huge hit after their
1923 introduction. 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.

1920s and 30s … International expansion

Led by long-time Company leader 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, Peru, Spain, Australia and South Africa. By the time World War II began, Coca-
Cola was being bottled in 44 countries.

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

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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.

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.

1960s … New brands introduced

Following Fanta in the 1950s, Sprite, Minute Maid, 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 Dasani in the 1990s. Today
hundreds of other brands are offered to meet consumer preferences in local markets
around the world.

1970s and 80s … Consolidation to serve customers

As technology lead to a global economy, the retailers who sold Coca-Cola merged and
evolved into international mega-chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a number of bottler
consolidations to assure that its largest bottling partners would have capacity to lead the
system in working with global retailers.

1990s … New and growing markets

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. And as the century closed, more than $1.5 billion was
committed to new bottling facilities in Africa.

21st Century …

The Coca-Cola bottling system grew up with roots deeply planted in local communities.
This heritage serves the Company well today as people seek brands that honour local

22
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.

HINDUSTAN COCA-COLA BEVEAGES PRIVATE LIMITED

(HCCBPL)
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-

23
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 “ThandaMatlab 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

(Fig no-2)

24
HCCBPL is large beverage bottling company, responsible for the manufacture, package,
sale and distribution of beverage under the trademark the Coca-Cola Company, USA, in
India.

HCCBPL has an extensive distribution system spanning more than a million outlets
operating with world class execution standards. The focus of the system is to develop
strong customer value while delivering preferred choice of refreshment at an arm's length
of desire to the consumer.

HCCBPL's Product Portfolio has an extensive range to choose from:

Sparkling Beverages – Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca, Kinley
Soda, Schweppes Tonic Water.

Still Beverages – Maaza, Minute Maid Pulpy Orange, Minute MaidNimbu Fresh, Minute
Maid100% Juices (Apple, Grapes, Orange, and Mixed Fruit), Minute Maid range of fruit
flavoured drinks.

Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on building world
class operations based on principles of safety, profitability and solid governance to claim
sustained growth. As part of our journey of moving towards being a World Class
Company, we have strengthened our organization in terms of Supply Chain,
Infrastructure, Market Execution, People, Processes, Compliance, Governance and Route-
to-Market. This approach has enabled us to build our portfolio through launching new
packs and brands, coupled with a competitive pricing strategy based on a balance of value
pricing and eliminating waste.

Vision:

 To make every Indian’s first choice of refreshment available within easy

reach.

Mission:

 To build a consumer driven, customer-focused, profitable, sustainable, and

 socially responsible business in India.

Values

25
  Leadership
 Empowerment
 Passion for wining
 Citizenship
 Integrity
 Accountability
 Teamwork

INDIAN BUSINESS MODEL:-

(Fig no-3)

26
PRESENT SCENARIO
Latter on when globalizing our economy opening it up for MNC’s like Pepsi, Coca-Cola,
and Cadbury etc to enter the real cola war had begun.Although the import and
manufacture of international brands like coke andPepsi is enhanced in India, the local
brands are being stabilized byadvertisement good quality and low cost. Ever since the
entry of Pepsi, the competition between Pepsi and Parle was a battle of small arms, as the
alliance of Parle with coke and constant reveal of sophisticated management techniques
by Coke and full fledge highly innovative promotional activates by Pepsi has really made
the industry as abattle field of cannons.One can make above statement by seeing
advertisement expenditure andinvestment of Coke and Pepsi. Coke is expected to pump
2400 crores and Pepsi 300 crores into the Indian markets apart their initial investment of
250 croresand 500 crores respectively.

MARKET SHARE

Cola products account for nearly 61-62% of the total soft drink market.The brands that
fall in this category are Thumps Up, Diet Coke, DietPepsietc. Non-Cola segments which
constitute 36% can be dividedinto four categories based on the types of flavors available
namely orange,cloudy Lime, Clear Lime and mango. Coca Cola, king of soft drinks
industryboasts a global market share of around 50% followed by Pepsi Company atabout
21% and Cadbury Schweppes at 7%.

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED,

BIDADI-BANGALORE.
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.
Hindustan Coca-Cola Beverages Private Limited, Bidadi unit was formally inaugurated
on 12 February, 2000 by Chief Minister Mr. S. M. Krishna.
The Bidadi Unit is spread over an area of 15 acres. The company follows the policies of
The Coca-Cola Company, Atlanta and also by the Indian headquarters, Gurgoan. The
Bidadi unit is spread over an area of 15 acres. This is the State of the art bottling facility
with four lines one of which is a pet line.

27
Manufacturing Capability
There are 2 Bottling lines in Bidadi plant. Out of 2 PET line, one has a capacity of 40000
bottles per day (carbonated soft drinks), one water line which has a capacity of 40000
bottles per day. The brands produced here include Coca-Cola, Sprite, Fanta,Kinley
Mineral Water. Hindustan Coca-Cola Beverages Private Limited has 3 COBO
(Company Owned Bottling Operations) region and 27 COBO units. Hindustan Coca-Cola
Beverages Private Limited handles manufacturing of finished products, selling and
delivery to customer.HCCBPL’s vision is to createa World Class Selling Organization
and a Culture of Operating Excellence to continually improveconsumer experience,
customer satisfaction, employee capability and company profitability.

(Source:www.hindustancoca-cola.com)

28
 CHAPTER 4
ORGANISATIONAL
HIERARCHY

29
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 Cola section
Coca Cola, Diet Coke, Thums Up

In Lemon Section
Sprite, Limca

In Orange Section
Fanta Orange

30
In Juice Section

Maaza, Minute Maid PULPY ORANGE

In Soda Water and Bottled Mineral Water Section

Kinley Soda, Kinley Mineral water

31
 1. Organization Structure

India Organization Structure

CEO

VP, Region Region Region Region

VP, Supply CFO Director VP VP, VP, VP,
, HR South Central
Sales Chain East North

(Fig no-4)

The above illustrated figure shows the hierarchical structure of Coca-Cola Company in
India. Here CEO is the head of the company from where authority flows to sales
department, supply chain department, finance department, human resource department
and regional vice president.

32
Region Organization Structure

Region VP

AGM/AOD Region Region Cold Region Director/

Unit 1 Finance Drink Manager
Market Execution
AGM/AOD
Region HR Region Legal Region
Unit 2
Capability
Development
AGM/AOD Region
Region
Customer
Unit 3 Microbiologist Region
Service
Channel

AGM/AOD Region
External
Unit 4 Affairs

(Fig no-5)
The above figure shows the regional organizational structure and flow of authority
through regional vice president to its subordinates.

33
 CHAPTER 5
FUNCTIONAL DIVISION

34
Hindustan Coca Cola Beverages Private Limited, Bidadi Unit
Organization Structure
Direct Report to Factory Manager

PRODUCTION DEPARTMENT

The function of this department is to execute the production and production related
activities in an effective and efficient manner.

Manager Production

Manager Maintenance

Manager Quality

Factory Manager
Manager Shipping

Team Leader- Stores

Manager Human Resources

(Fig no-6)

35
Department Structure-2

Factory Manager

ADMI
NISTR
HOD PRDODUCTION AND ATIO
HOD QUALITY N
MAINTAINENCE
Depart
ment

4 LINE 4 QUALITY
MANAGERS EXECUTIVES

(Fig no-7)

36
PRODUCTION PROCESS

37
38
Fig:Production Layout)

39
BIDADI
Raw Water Plant.
LAKE WATER
TREATMENT
PLANT

SUGAR SYRUP ROOM

DUMPING

AREA

PET BOTTLING PROCESS

FILLING CHECKING WITH

PERFORMA
PROCESS VIDEO SENSOR
BLOWN

LABELLING

PALLETIZING

Figure: Bottling and Filling Process(Fig no-8)

40
The whole production process is shown in the above chart which shows how raw material
passes through different process and results into the finished products. First of all raw
water is collected from the Bidadi lake in Raw Water Plant. Collected water is then
purified through 7 layer of sedimentation process. Purified water is then passed through
carbonated filter to make soft water. Water filtered through carbonated filter is moved to
syrup room where it is mixed with concentration and sugar. Then this solution is passed
to bottling floor for being filled up in pet bottles.

Pet bottles are made by blowing the Performa received from certified suppliers. Performa
blowing is done with nitrogen gas to make it hard bound. As the Performa takes the shape
of the pet bottle it will be filled up with solution. Then, bottle is labelled with appropriate
labels. Quality assurance is being implemented through the use of video sensors for
overall production process. Any flaws found during this process will lead to rejection of
bottles automatically.

Finally, the pet bottles are moved through automatic palletizer to wrap with thin plastic so
that it is ready for shipment.

CPK =MIN( USL-MEAN, MEAN-LSL)

3σ 3σ
Cp=USL-LSL/6σ

Importance of Cp and Cpk

 To ensure quality.
 To ensure that process capability defect free.
 To reduce the wastage.

41
QUALITY DEPARTMENT

To maintain Quality of product while purchasing and producing product.

The quality system is committed to ensure:

 Consumer satisfaction.
 Protection and enhancement of the trademark and brand image.
 Production of 100% quality product.
 Responsible; environmental friendly citizen.
The quality is maintained at different levels; they are

 Production material – sugar, water and co2.

 Auxiliary material – water, treatment and syrup treatment.
 Packing materials- cartoons, labels etc.

42
Department Structure

Factory Manager

Quality Manager

Team RMPM Microbiolog Fountain

Team
Leader- QA Executive ist Chemist
Leader-QA
Line QA Executive- Executive
Process
Incharge QA QA

Executive- Executive-
QA QA

Trainees

(Fig no-9)

Responsibilities of Microbiologist

 Responsible for Microbiological testing, water sampling, online samples and

market samples.
 Responsible for documentation for test reports and generation of other reports as
required and proper handling and filling of reports.
 Responsible for housekeeping/ sanitation parameters in plant including lab.
 Responsible for periodic checking shelf life samples and market samples.
 Responsible for incoming raw materials checking.
 Responsible for Responsible for calibration of hydrometer/ density meter.

43
Chemist

 Responsible for quality testing of raw materials of production.

 Supervisor of the syrup preparation process.
 Responsible for checking quality parameters.
 Test of shelf sample, market sample.
 Documentation of syrup reports/ preparation of various reports.
 Responsible for quality parameters for online production process.

Executive

 Responsible for quality norms for entire plant.

 Responsible for ensuring product specification and mixing instruction.
 Responsible for overall required quality test of raw materials, packing and
finished products as per specification.

KAIZEN PROCESS

Kaizen meaning ‘continuous or ongoing improvement’ in Japanese it is an inseparable

aspect of the management of quality. Kaizen has basically do with small, step by step
continuous improvements. Kaizen philosophy believes that people at all levels, including
the lowermost level in the organizational hierarchy.

APPLICATION OF KAIZEN AT HCCBPL

 Customer orientation.
 Total quality control
 Quality circles
 Suggestion system
 Total Productive Maintenance(TPM)
 Productivity improvement
 New product development
 Labour-management relation
 Zero defects
 Just-in-time system

44
MAINTAINANCE DEPARTMENT
Department Structure

Factory
Manager

Manager
Maintenance

Team Leader-
Maintenance

Executive-
Maintenance

(Fig no-10)
Ninety per cent of the problems come through cleanliness.in a year we do health check of
plant for 4 times ayear.
Maintenance Department has 3 different approaches to maintenance. Breakdown
maintenance is done when the breakdown has already occurred. The Purpose of
Breakdown maintenance is to reduce the downtime losses and reduce the impact of the
breakdown on immediate sales. Preventive Maintenance is best for equipment that has
unpredictable performance, complexity and history of erratic behaviour. In Predictive
maintenance, they anticipate probable problems that can happen.
The functions of Maintenance Department includes
 Lab Equipment maintenance
 Maintenance of Forklift
 Bottle washer maintenance
 Electrical maintenance
 Facility and Grounds maintenance
 Filler maintenance
 Fountain Equipment maintenance
 Maintenance of PET and Maaza line Equipment.

45
SHIPPING DEPARTMENT
Function of Shipping Department includes
 To maintain glass breakage below 1.1 % of total production.
 To achieve 100 % dispatches for trade against order within 24 hrs.
 Achieve GMP (Good Manufacturing Practices) of 85 %

Department Structure

Factory
Manager

Manager -
Shipping

Executive-
Shipping

(Fig no 11)

Responsibilities of Manager

 Responsible for loading/ unloading operations and documentations.

 Responsible and ensure brand wise inventory handling of empties/ fills.
 Responsible for allocation of labour in shipping process (load/ unload).
 Ensure that warehouse and yard is always clean and manages storage space.
 Responsible for proper handling/ storage of finished products transferred from
production to warehouse.
 Responsible for maintaining accurate physical counting of empties on a daily
basis.
 Prepare reports with respect to empties sorting and bottle breakage during loading/
unloading operations.
46
Executives

 Responsible for sales invoice verification on a daily basis.

 Responsible for preparation of waybill register.
 Responsible for periodical verification of all excisable materials and identify/
notify.
 Responsible for loading/ unloading operations and documentation.
 Responsible and ensure brand wise inventory handling of empties/ fills.
 Responsible for allocation of labour in shipping process (load/ unload).
 Responsible for the warehouse and yard is always kept clean and manage storage
space.
 Responsible for proper handling/ storage of finished products transferred from
production to warehouse.
 Responsible for maintaining accurate physical counting of empties on a daily
basis.
 Prepare reports with respect to empties sorting and bottle breakage loading/
unloading operations.
 Responsible for selection and monitoring of transport activities.
 Responsible for maintaining GMP norms in finished goods.
 Responsible for proper dispatches of customers within stipulated time.

47
STORES DEPARTMENT

Department Structure

Factory
Manager

Team
Leader-
Stores

Executive-
Stores

(Fig no-12)

Functions

The process of stores department starts from Receipts and then issuing and Inventory
Planning. In Inventory planning there is a status ID for materials i.e. Red- Reject, Green-
accepts and Yellow-Onholds. Using FEFO (first Expiry First Out)

Responsibilities

 Direct responsibility for all stores including raw materials, packing materials and
spare parts.
 Direct responsibility for purchase and availability of all materials for production.
 Direct responsibility for control of raw materials, packing materials and spares.
 Direct responsibility for maintaining the record of receipts, issues and reconciling
physical inventory.
 Direct responsibility for implementation for inventory management systems.
 Direct responsibility for building constructive relationship with material suppliers
and giving delivery schedules for raw material and spares.

48
 Direct responsibility for identification of inspection and test status for all
materials.
 Provide assistance in negotiations with suppliers and developing local suppliers.
 Direct responsibility for ensuring stock rotation of raw packing materials.
 Direct responsibility for selection, coaching, feedback and development of store
personal.
 Direct responsibility for discipline in store work force.
 Direct responsibility for ensuring audit of inventory records.
 Direct responsibility for reporting inventory to the relevant managers and
personal.
 Direct responsibility for responsibility of personnel, facilities and equipment.

SUPPLY CHAIN DEPARTMENT

Department Structure:

Factory
Manager

Manager -
Supply Chain

Team Leader-
Supply Chain

Executive -
Supply Chain

(Fig no-13)

49
Functions
 After receiving information from user department, it is the responsibility of the
Supply chain Department to get the quote from vendor.
 After Purchase order, ensure for early release from Finance Department and
timely informing to vendor/ User Department and maintaining all details.
 Track between Purchase Requisition to Purchase Order.
 To maintain weekly report on money spent on each department.
 To maintain list of authorised dealers and distributors.
 To maintain report on Raw material and Purchase material tracking, Critical item
list, Material in Transit.
 Filing Purchase order with signature as per Certificate Of Analysis.
 All Purchase order amendments should be made after approval from Finance
Department.

MARKETING DEPARTMENT

A.G.M

Marketing
Officer

Marketing Marketing Office

Manager Executive Staff

(Fig no-14)

50
Marketing Mix

Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing
objectives. It has a classification for these marketing tools. These marketing are classified
and called as the Seven Ps i.e. Product, Positioning, Packaging, Price, Promotion, Place &
Distribution and Physical Distribution Issues.
The most basic marketing tool is product which includes product design, quality, features,
branding, and packaging. A critical marketing tool is price i.e. the amount of money that
customers pay for the product. It also includes discounts, allowances, credit terms and
payment period.
Place is another key marketing mix tool. And it includes various activities the company
undertakes to make the product accessible and available to the customer. Some factors
that decide the place are transport facilities, channels of distribution, coverage area, etc.
Promotion is the fourth marketing mix tool which includes all the activities that the
company undertakes to communicate and promote its product to target market. Promotion
includes sales promotion, advertising, sales force, public relations, direct marketing, etc.

Product

Many products are physical objects that you can own and take home. But the word
product means much more than just physical goods. In marketing, product also refers to
services, such as holidays or a movie, where you enjoy the benefits without owning the
result of the service. Businesses must think about products on three different levels,
which are the core product, the actual product and the augmented product. The core
product is what the consumer is actually buying and the benefits it gives. Coca Cola
customers are buying a wide range of soft drinks. The actual product is the part and
features, which deliver the core product. Consumers will buy the coke product because of
the high standards and high quality of the Coca Cola products. The augmented product is
the extra consumer benefits and services provided to customers. Since soft drinks are a
consumable good, the augmented level is very limited. But Coca Cola do offer a help line
and complaint phone service for customers who are not satisfied with the product or wish
to give feedback on the products.

Positioning

Once a business has decided which segments of the market it will compete in, developed
a clear picture of its target market and defined its product, the positioning strategy can be

51
developed. Positioning is the process of creating, the image the product holds in the mind
of consumers, relative to competing products.
Coca Cola and Franklins both make soft drinks; although Franklins may try to compete
they will still be seen as down market from Coca Cola. Positioning helps customers
understand what is unique about the products when compared with the competition. Coca
Cola plan to further create positions that will give their products the greatest advantage in
their target markets. Coca Cola has been positioned based on the process of positioning
by direct comparison and have positioned their products to benefit their target market.
Most people create an image of a product by comparing it to another product, thus evident
through the famous battles between Coca-Cola and Pepsi products.

Packaging

Packaging, which is not as highly perceived by businesses, is still an importantfactor to

examine in the marketing mix. Packaging protects the product during transportation,
while it sits in the shelf and during use by consumers, promotes the product and
distinguishes it from the competition. Packaging can allow the business to design
promotional schemes, which can generate extra revenueand advertisements. Coca-Cola
has benefited from packaging the product withincentives and endorsements on the
labelling as a promotional strategy to increase its volume of sales and revenue.

Price:

Price is a very important part of the marketing mix as it can affectboththe supply and
demand for Coca Cola. The price of Coca Cola’s products is one of the most important
factors in a customer’s decision to buy. Price will often be the difference that will push a
customer to buy our product over another, as long as most things are fairly similar. For
this reason pricing policies need to be designed with consumers and external influences in
mind, in order to effectively achieve a stable balance between sales and covering the
production costs. Price strategies are important to Coca Cola because the price determines
the amount of sales and profit per unit sold. Businesses have to set a price that is
attractive to their customers and provides the business with a good level ofprofit. Long
before a sale was ever made.Coca Cola had developed a forecast of consumer demand at
different prices which inevitably determined whether or not the product came on the
market, as well as the allocation of adequate money and resources to produce promote
and distribute the product.

52
Pricing Strategies andTactics:

The pricing Strategy a business will use will have to focus on achieving themarketing
plan’s objectives and support the positioning of the product, and take external factors
such as economic conditions and competitors in to account. There are 5 strategies
available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price
Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of
grabbing a foothold in the market and won a market share. Its product penetrated the
marketplace. Once customer loyalty is established as seen with Coca Cola it is then able
to slowly raise the price of its product. There has been a fierce pricing rivalry between
Coca Cola and Pepsi products as each company competes for customer recognition and
satisfaction. Till now it appears as if Coke has come up on top, although in order to gain
long term profits Coke had to sacrifice short term profits where in some cases it either
went under of just broke even, but as seen it has been all for the best.

Pricing Methods

Good pricing decisions are based on an analysis of what target customersexpect to pay,
and what they perceive as good quality. If the price is too high,consumers will spend their
money on other goods and services. If the price is tool, the firm can lose money and go
out of business.

Pricing methods include: Cost based Pricing, Market based pricing and Competition
based Pricing. Over the years Coca has lost ground here in itspricing but has regained its
strength as it employed the Competition-based pricing method which allowed it to
compete more effectively in the soft drink market. Leader follower pricing occurs when
there is one quite powerful business in the market which is thought to be the market
leader. The business will tend to have a larger market share, loyal customers and some
technological edge, thus the case currently with Coke; it was first the follower but
through effective management has now become the leader of the market and is working
towards achieving the marketing objectives of the Coca Cola. Coke controls 42% of the
total carbonated soft drink market, compared with Pepsi's 30%, according to Beverage
Digest.

53
Promotion

Olympic2012IPL EURO 2012

In today’s competitive environment, having the right product at the rightplace in the right
place at the right time may still not be enough to be successful. Effective communication
with the target market is essential for the success of the product and business. Promotion
is the p of the marketing mix designed to inform the market place about who you are, how
good your product is and where they can buy it. Promotion is also used to persuade the
customers to try a new product, or buy more of an old product.The promotional mix is the
combination of personal selling, advertising, sales promotion and publicrelations that it
uses in its marketing plan. Above the line promotions refers to mainstream.

PUSH & PULL STRATEGY

PUSH STRATEGY

HCCBPL is using Push strategy in which they use its sales force and trade promotion

money to induce intermediaries to carry, promote and sell the product to end users i.e.

consumers.For example-as HCCBPL is giving free pet bottles and other trade schemes to

distributors, agency owners and retailers.

PULL STRATEGY

HCCBPL is also using Pull strategy in which they are using advertising and promotion to
persuade consumers to ask intermediaries for the company brand product by this way
HCCBPL inducing customer to order it from shopkeeper.

For example-HCCBPL is using flanges, display racks, tier racks, standees, mobile
hangers and visicooler brand strips.

54
Media

Advertising through common media such as television, radio, transport, and billboards
and in newspapers and magazines. Because most of the target is most likely to be exposed
to media such as television, radio and magazines, Coca Cola has used this as the main
form of promotion for extensive range of products. Although advertising is usually very
expensive, it is the most effective way of reminding and exposing potential customers to
Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests,
coupons, and free samples. These activities are an effective way of getting people to give
your product ago.

Place and Distribution

The place P of the marketing mix refers to distribution of the product- the ways of getting
the product to the market.The distribution of products starts with the producer and ends
with the consumer.One key element of the Place/Distribution aspect is the respective
distribution channels that Coca Cola has elected to transport and sells its product.
Selecting the most appropriate distribution channel is important, as the choice will
determine sales levels and costs. The choice for a distribution channel for any business
depends on numerous factors, these include:

How far away the customers are;

The type of product being transported;
The lead times required; and;
The costs associated with transport;

There are four types of distribution strategies that Coca Cola could have chosen from,
these are: intensive, selective, exclusive and direct distribution. It isapparent from the
popularity of the Coca Cola s product on the market that the business in the past used the
method of intensive distribution as the product is available at every possible outlet. From
supermarkets to service stations to your local corner shop, anywhere you go you will find
the Coca Cola products.

55
Physical Distribution Issues

Coca Cola needs to consider a number of issues relating to the physical distribution of its
soft drink products. The five components of physical distribution are, order processing,
warehousing, materials handling, inventory control, transportation. Coca-Cola must
further try to balance their operations with more efficient distribution channels. Order
Processing- Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery
to selling canter’s), as this is inefficient business functioning and is portrays a flawed
image of the product and overall business. Warehousing and inventory control-
warehousing of Coca Cola products is necessary.
Inventory control is another important aspect of distribution as inventory makes up a
large percentage of businesses assets. Choosing the correct and desired inventory measure
that Jackson’s sees as most effective is vital. Jackson’s must remember though that there
are factors involved with inventory control that can hinder the products sales and
customer perceptions (hazards, distribution from storage facilities, etc).Materials
handling- this deals with physically handling the product and using machinery such as
forklifts and conveyor belts. When holding products, then Coca-Cola has benefited from
purchasing or renting respective machinery.
Transportation- transporting Coca Cola products is the one most important components of
physical distribution. Electing either to transport the sports drink by air, rail, road or water
depends on the market (i.e. global, or domestic) and depends on the associated costs. The
most beneficial transportation method for Coca Cola would be ROAD if the product were
moved around from storage to the cost centres.

56
HUMAN RESOURCE DEPARTMENT
Department Structure

Area HR
Manager

Factory HR
Manager

Administration
Executive HR Security Officer
Support

(Fig no-15)

Major functions of HR Department are

 Recruitment.
 Training and development.
 Performance management system.
 Administration/payroll.
 Employee relation.
 Legal compliances.
 Compensation and benefit.
 Retirement.
Recruitment

 Recruitment policy: The Factory Manager and HR manager will recruit the
particular person and they will close within 30 days.

57
  Manpower sources of Organization: The manpower are recruited in the form of
Consultancy, Employee Exchange, Employee Reference, Work Interview etc.
 For recruitment policy, they are not considering any reservation for any kind of
category of employees.

Selection

 In a selection committee there will be Factory Manager, HR & particular

department head. For selection of employee, first it goes with department head
then HR and Factory Manager.
 For technical people only they are conducting written exams. For other people,
there will be direct interview.
 The interview is done by particular department head and HR manager basing on
vacancy of job in particular department.After recruiting he will be sent
toinductionprogramme for one day. Afterwards they will be send to each
department for knowing the functioning and also for route to market.

TRAINING AND DEVELOPMENT POLICY

OBJECTIVES

 To equip associates with the knowledge, skills and attitudes to perform effectively
on their current as well as anticipated future assignments
 To ensure that associates have the necessary skills to meet business objectives

PROCEDURES

 The Manager, Management Development well meet with the functional heads at
the beginning of each year to identify the training needs for each department. The
training needs would be linked to the corporate objectives as well as the current
competency levels of the associates. The training needs would be linked to the
corporate objectives as well as the current competency levels of the associates. .
 Based on an analysis of the training needs identified, need-Based training
programs are designed and an annual Training Calendar will be compiled. This
document will be shared with the Executive Committee to get their feedback.

58
  The training Calendar will be released within the one month of receiving all the
appraisals. It will contain a brief description of the programs, the recommended
target audience and the program schedules.
 Internal training programs will be conducted if there is a minimum of 8
participants for a given program. Facilitators for these programs will include the
Manger, Management Development for monitoring.
 After attending the program, the associate will complete the Training Evaluation
form and submit it to the Manager, Management Development for monitoring.
 After attending the program, the associate will complete the Training Evaluation
form and submit it to the Manager, Management development. Associates
attending outstation-training programs will be reimbursed expenses as per the
travel policy guidelines relevant to them. This cost will be borne by each
associate’s department.

OBJECTIVE

To provide employees with an environment conductive to individual productivity, growth

and development, consistent with business conditions and the operating needs of the
company.

It is the company’s policy to,

 Manage employee relations in a fair and consistent manner.

 Maintain effective communication practices
 Be aware of and responsive to employee needs
 Strive to maintain relationships among employees that merit their trust and
confidence and create an environment to enhance the quality of work life.

SERVICE CONDITIONS

OBJECTIVE

To ensure that all employee actions are consistent with the laid-out organizational
policies.

59
CONDITIONS OF SERVICE

An employee is required at all times to diligently and faithfully serve the company and is
required to devote his/her whole time and attention exclusively to the business and
interest of the company and to the best of his /her skill carry out his /her duties and attend
punctually at the place or places where he/she is employed.

Employees should hold themselves in readiness to perform any duties required of them to
the best of their ability.

TERMS OF EMPLOYMENT

The terms of employment of any employee of the company are as per the details
contained in their letter of appointment. The company reserves the right to amend, alter or
change any of the terms and conditions of employment.

GENERAL RULES AND REGULATIONS

COMMUNICATION

The company firmly believes that effective communications at all levels significantly aids
efficient operation. Should any associate have any queries/questions regarding his/her
work, the associate is encouraged to discuss them with his/her supervisor/manager. From
time to time, the departmental head or the Country Head may call special communication
meetings to ensure that all staff is kept informed of significant issues. Other
announcements will either be circulated or posted on the Company.

SEXUAL HARASSMENT

The company has a long-standing commitment to maintaining a work environment free of

all forms of discrimination, including sexual harassment, for all employees. All
employees are encouraged to cooperate and participate in helping the company maintain
an environment that is conducive to individual productivity, growth and development.

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ATTIRE POLICY

The company is committed to upholding its professional image, specifically as relates to

dress and appearance of employees. It is expected that all employees will be dressed in an
acceptably professional manner while on the job. All employees are required to wear
standard business attire or, if required working clothes and / or uniforms as issued by the
company, from Monday through Thursday, during working hours. Casual clothes like T-
shirts, jeans, etc., are not allowed in the office during normal working hours except
Fridays.

TRAVEL RULES

Travel and hotel stays are governed by the guidelines contained in the travel policy/guide,
issued by the admin department. Any employee seeking clarifications on any of these
guidelines should contact the HR Manager.

EMPLOYEE PERSONNEL FILES

The company maintains personnel files for employees who contain information required
for business and legal purposes.

FINANCE DEPARTMENT

Department Structure

Area
Finance
Manager

Manager-
Finance

Executive
Finance

(Fig no-16)

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 The finance manager has to report to the AGM and regional finance manager. The
finance department has the power to take any financial decisions like allocation of
budgets, approval of budgets etc.

The finance department also has the following functions:

 Follow up of the collections.

 Preparation of the financing reports (distributors AR-closing stock)
 Claims handling and distributors Reconciliation.
 Getting the report from the S&D on the sale proceeds.

During the monthly closing the finance department has to ensure the AR reconciliation.
The scope of financial analysishowever depends on its purpose from an investor point of
view, predicting the future is what financial statement analysis is useful both as a way to
anticipate future conditions.

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 CHAPTER 6
MY JOB EXPERIENCE

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Following are my on job experience for one month’s working at HCCBPL,Bidadi

1st week:

On 4th July organisation study was initiated.I met Mr.Amresh Sir, the quality
HOD. He provided a brief introduction about the company and showed the
various manufacturing units and the process.Treatment of river water from Bidadi
Lake was explained. The water is treated in order to make it chlorine free and
passed through sand filters and activated carbon filters for further purification.
Then it pumped to syrup room where it is mixed with concentrated syrup.

Manufacturing process of syrup was explained. Highest quality refined sugar is

mixed with treated water to form simple syrup which is pumped through filters to
ensure purity and clarity. Carbonated filter paper is used for this purpose. At this
stage different proportion of sugar is added for manufacturing the syrup of
concerned drink like Fanta,coke,spriteetc.Distinctive blend of ingredients are
added in order to form the cola syrup. Now this syrup is pumped to de-aerator
proportional cooler carbonator where a proportionate amount of de-aerated water
is mixed which is further cooled and carbonated. Now the syrup is ready for
filling.

2nd week:

In second week, manufacturing process of pet bottles was explained.Pet bottles

are made by blowing the Performa received from certified suppliers. Performa
blowing is done with nitrogen gas to make it hard bound. As the Performa takes
the shape of the pet bottle it will be filled up with solution. Then, bottle is labelled
with appropriate labels. Quality assurance is being implemented through the use
of video sensors for overall production process. Any flaws found during this
process will lead to rejection of bottles automatically.

Finally, the pet bottles are moved through automatic palletizer to wrap with thin
plastic so that it is ready for shipment.

3rdweek:I was mainly placed in the production and maintenance department

guided by Mr.Anmol HOD. Bottle Parameter test was done by us. Testing is done
in lab and sometimes from market sample is taken and testing is done.1000ml pet
water bottle quality testing was done. Gate area thickness, base clearance ,height,
base thickness, label panel thickness and upper shoulder thickness, removal
torque, pressure test, label panel weight test, upper shoulder weight test, base
weight test, bottle burst test, bottle diameter, net content test was done. From this
reading, cp and cpk value was calculated.

4th week:

In this week different department like quality department, maintenance

department,shippingdepartment,store department,

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supplychain,HRdepartment,financedepartmentfunction,managersresponsibilities.
Procedures were explained in the brief.Ninety per cent of the problems come
through cleanliness.in a year we do health check of plant for 4 times a year.

Maintenance Department has 3 different approaches to maintenance. Breakdown

maintenance is done when the breakdown has already occurred. The Purpose of
Breakdown maintenance is to reduce the downtime losses and reduce the impact
of the breakdown on immediate sales. Preventive Maintenance is best for
equipment that has unpredictable performance, complexity and history of erratic
behaviour.

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 CHAPTER 7
SWOT ANALYSIS

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PepsiCo
PepsiCo Inc. is an American multinational food and beverage corporation headquartered
in Purchase, New York, United States, with interests in the manufacturing, marketing and
distribution of grain-based snack foods, beverages, and other products. It is 66.41billion
Dollar Company with274,000 employees. 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's success is the result of superior
products, high standards of performance and distinctive competitive strategies.
Nestle
It is 92.16 billion company with333,000 employee.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
It is 1 billion dollar company with6,154 employees.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.

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STRENGTHS

DISTRIBUTION NETWORK

The Company has a strong and reliable distribution network. The network is
formed on the basis of the time of consumption and the amount of sales yielded by
a particular customer in one transaction. It has a distribution network consisting of
a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The
distribution fleet 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.

STRONG BRANDS
The products produced and marketed by the Company have a strong brand image. People
all around the world recognize the brands marketed by the Company. Strong brand names
like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-
Cola Company as a whole. The red and white Coca-Cola is one of the very few things
that are recognized by people all over the world. Coca-Cola has been named the world's
top brand for a fourth consecutive year in a survey by consultancy Interbrand.Itwas
estimated that the Coca-Cola brand was worth$70.45billion.

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LOW COST OF OPERATION
The production, marketing and distribution systems are very efficient due to forward
planning and maintenance of consistency of operations which minimizes wastage of both
time and resources leads to lowering of costs.

 Improved quality control.

 Latest technology.
 Heavy investment in both infrastructure and sales promotion campaigns.
 Modified and attractive packaging.
 Strong advertising network.

WEAKNESSES

LOW EXPORT LEVEL

The brand produced by the company are brands produced worldwide 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.

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.

 Gaps in distribution system during peak season

 Same old distributers, co loosing grip from many such markets.
 Fear of retrenchment among the workers.
 Customer satisfaction level goes down during peak season.

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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.

HIGHER INCOME AMONG PEOPLE

Development of India as a whole has led to an increase in the per capita income thereby
causing an increase in disposable income. Unlike olden times, people now have the power
of buying goods of their choice without having to worry much about the flow of their
income. The beverage industry can take advantage of such a situation and enhance their
sales.

 Highly potential and huge market.

 Highly potential untapped rural market.
 Distribution gaps and can be rectified by appointing new distributor and more
effective coverage of outlets.

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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.

TAX AND REGULATORY SECTOR

The tax system in India is accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is issued, the production
capacity is mentioned on the license and every time the production capacity needs to be
increased, the license poses a problem. Renewing or updating a license every now and
then is difficult. Therefore, this can limit the growth of the Company and pose problems.

SLOWDOWN IN RURAL DEMAND

The rural market may be alluring but it is not without its problems: Low per capita
disposable incomes that is half the urban disposable income; large number of daily wage
earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked
to harvests and festivals and special occasions; poor roads; power problems; and
inaccessibility to conventional advertising media. All these problems might lead to a
slowdown in the demand for the company’s products.

 Stiff competition.
 Illegal distribution done by some unauthorized fat dealers.
 Changing of consumer preference.

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 CHAPTER 8
FINDINGS,SUGGETIONS
AND CONCLUSIONS

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FINDINGS
1. The organization has good working environment provided by the management.
2. Staff and workers were fully involved in their work during shift hours.
3. Canteen facility is good with fresh and hygiene food.
4. Most of the people have positive attitude towards the organization.
5. Management is very much concerned for the workers welfare.
6. HCCBPL was maintaining good relation between employee and employer.
7. Different welfare programs are conducted in different departments.
8. The employer- employee relations in this HCCBPL is very good.
9. They maintain good safety measures to their employees as well as for theworkers in
the organization under the welfare programs.
10. The HCCBPL provides various non-statutory welfare schemes also such asmedical
facilities, insurance and regular medical check-up.

CONCLUSIONS AND SUGGESTIONS

It was a very exciting Organizational Study at Hindustan Coca-Cola Beverages Private
Limited, Bidadi, Bangalore. We have seen how the management functions are practiced.
It was a great experience to go there and get a practical touch with the theory and
concepts what we have studied in books.
We can conclude that Coca-Cola has a good image attached to it and hence it should
maintain its image, because today’s scenario people are very much conscious of their
health and look for value of their money.Quality test of bottle,water coke was done in
laboratory. Hence with such a great brand name established for them is a real advantage
for them and with this can reach to new heights.

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BIBLIOGRAPHY

Books:

 Organizational Behaviour-k Aswathappa. “Organizational Culture”

Publisher is Himalaya Publishing House. 9th Edition. Page N0-529-596. 649-666.
 Business Environment-Francis cherunilam. Part-1 an Overview of Business
Environment. Publisher is Himalaya Publishing House. Eighteenth Revised
Edition:2008..Page no-1-137
 Production and Operations Management- SN charry.
Chapter-11.New Quality Concepts and Initiatives, Total Quality Management.
Publisher is Tata McGRAW HILL. Third Edition.Page no-11.13
 Marketing Management-Dr.C.B Gupta &Dr. N. Rajan Nair
“Marketing Mix” Publishers is Sultan Chand & sons
Edition-2004
Websites:
 http://news.bbc.co.uk
 http://www.coca-cola.com
 http://www.google.com
 www.coca-colaindia.com
 www.superbrand.com
 www.wikipedia.org

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