“A Study of Claims & Freight Payable of HINDUSTAN COCA COLA BEVERAGES Pvt. Ltd.“
Submitted to: Faculty Guide
Company Guide
Mrs. Durga Taksande S.I.B.M Vadgaon Pune
Mrs. Swapnili Tiwari Assistant Finance Manager Hindustan Coca Cola Beverages Pvt. Ltd. Kanpur
ACKNOWLEDGEMENT
I would like to express my sincerest gratitude to the head of the organ organiza izatio tion n Mr. Mr. Deepak Deepak Rewadi Rewadi (Area (Area Genera Generall Manag Manager) er),, Mr. Mr. Sandeep Behl (Finance Manager) & Mr. Mr. Sheetla Singh (HR Manager) of my com compan pany. My com compan pany gu guid idee at Hind Hindus usta tan n Coc Coca Col Cola Beve Bevera rage gess Priv Privat atee Limi Limite ted d i.e. i.e. Mrs. Mrs. Swap Swapni nili li Tewar ewarii (Ass (Assis ista tant nt Finance Manager), Mr. Rajesh Makwana (Team Leader - Finance, Mr. Anup Anup Pand Pandeey (Ex (Execu ecutiv tive - Acc Accou oun nts Paya Payabl ble) e),, Moh ohd. d. Sart Sartaj aj (Executive – Indirect Route (A.R) for providing me with valuable insigh insights, ts, regula regularr guidan guidance, ce, suppor supportt and encour encourage agemen mentt during during the period of my project with a keen interest, enthusiasm, vigor. vigor.
Very special thanks to Mr. Alok Chand (Manager RTM); Gaurav Agarwal, Niranjan Chauhan and Manpreet Singh RTM Executives who made it an unforgettable summer internship for me. It was really a very wonderful experience working under their guidance. Also I would like to thank all the staff members at the depot and plant of the company in Kanpur for their support and for providing me with information whenever needed. I am also grateful to my faculty guide at Sinhgad Institute of Busi Busine ness ss Manag anagem emen ent, t, Vadga adgaon on,, Pune Pune i.e. i.e. Mr. Mr. Dani Daniel el Penk Penkar ar (Director – S.I.B.M.) and Mrs. Durga Taksande (Faculty - Finance) for their regular guidance, support and encouragement throughout my project work.
Mandeep Singh PGDM-PGDFT
Table of Contents
1. Introduction………………………………………………………………… 1.1 Objectives…………………………………………………………… 1.1.1 Primary Objectives………………………………………….... 1.1.2 Secondary Objectives………………………………………… 1.2 Methodology……………………………………………………….. 1.2.1 Understanding Phase………………………………………… 1.2.2 Analysis Phase………………………………………………. 1.2.3 Interpretation Phase…………………………………………. 2. Hindustan Coca-cola Beverages Pvt. Ltd…………………………………. 2.1 Company Profile…...………………………………………………. 2.2 Competitor Analysis………………………………………………… 2.3 Current Market Situation...………………………………………… 2.4 Factors Affecting Business. .........……………………………........ 2.5 Products and Pack Sizes……………………………………..……. 3. Claim Process 3.1 Introduc Introduction tion 3.2 Importance Importance of claims 3.3 Claim Claim strateg strategy y 3.4 Working of of claims claims 4. Freight Payable………..……….………………………………………....... 5. Coke Penetration in Rural Market….………………………………………. 6. Advertisement……………………………………………………………… 7. Vision & Leadership.............................................. Leadership..................................................................... ........................................ ................. 8. Manufacturing Process....……………………………………………………. 8.1 Water Treatment……………….....………………………………… 8.2 Syrup Preparation…………...………………………………......….. 8.3 Container Washing……. …………………………………………… 8.4 Mixing Proportioning…………………..…………………………… 8.5 Filling & Crowning………………………………………………….. 8.6 Final Inspection………………....…...……………………………….
8.7 Managing Managi ng the th e Waste Water…………...………………….……….… Water…………...………………….……….… 8.8 Market & Customers……… …………...………………….………… 8.9 Suppliers and Other Business Partners..………………….……….… 8.10 Employees, Plants & Machinery…………...………………….……..
9. SWOT Analysis……………………………………………………………. 10. Management Style………………………………………………………….. 11. Annexure …………………………………………………………………… 12. Objectives of the Study…………………………………………………… 13. Limitations of the Study ………………………………………………….. 14. References…………………………………………………………………...
1. INTRODUCTION
1. INTRODUCTION
With the development of world and human being, the taste, need and the attitude of human being also changes. India is one of the common market in the world with a population of more than one billion. Soft drink is a popular common product which is generally purchased by consumers for quenching their thirst in summer and also to have cooling refre refreshm shmen ent. t. As far far as the the marke markett of soft soft drinks drinks is conce concerne rned, d, it is facin facing g cut cut throa throatt competition from the larger number of soft drinks available in the market. Different brands are available in every segment of flavors, but the attitudes attitudes of the consumers differ from each other due to several factors. Every company tries to increase their market share and their sales volume. Discounting system followed by the companies proved to be an essential factor to boost up the purchases made by the retailers. The companies try to attract the retailers to purchase more by providing some schemes or incentives or cash/card discount. If more discount or any other incentive scheme is given to the outlets, they make purchases to avail that offer. Therefore, it is essential for any company to have an efficient and effective discounting system. Distribution Distribution is the spine of any FMCG company. company. The main function of a retailer is to bridge the gap between the supplier and the customer. The central focus of distribution is to increase the efficiency of time, place, and delivery utility. For any FMCG product it is essent essential ial to have have a goo good d distr distribu ibuti tion on netwo network rk which which should should be better better than than that that of its its competitors. Dist Distrib ributi ution on is the the key area area for any FMCG FMCG busin business ess.. For For a smoot smooth h distr distribu ibuti tion on network, it is essential to keep the retail outlets satisfied which in turn mainly depend upon the profitability. profitability. Their profitability is checked by keeping a satisfied profit margin for them. Apart from that, the company also provides discount on purchase of different pack sizes to some HVOs which in turn increases increases their profit profit margin. margin. Sometime Sometimess the company also provides incentives incentives to the outlets which make frequent and high purchases. To To meet stiff and challenging competition from some of the other brands, it is essential for the company to have an effective effective and efficient efficient distribution network. Therefore, Therefore, the company tries to keep the outlets satisfied by offering discounts and some other incentive schemes from time to time.
1.1 OBJECTIVES
1.1.1 Primary Objectives •
To find out any kind of misrepresentation being done by salesmen or by distributors related to daily sales by making out their own personal benefits from the discounting system.
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To compare the discounts given to HVOs on the basis of their sales volume.
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To make proposals to minimize the revenue leakages and this will help the company in saving its funds.
1.1.2 Secondary Objectives •
To study the discounting policies of the company.
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To know about the different pack sizes being sold by the company.
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To find out the outlets where the company is offering high discounts.
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To analyze the discount rates offered to HVOs.
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To find out whether they are actually getting the products at the pre - decided discounted price or not.
1.2 METHODOLOGY
This is being being the prima primary ry phase phase of the study involve involvess the 1.2.1 Understanding Phase : Th understanding understanding of the basic factors that affect discounting. discounting. In FMCG businesses, businesses, there are many factors that affect the discounting policies directly or indirectly and it is essential to have the knowledge of all these factors to understand the discounting system. Every company has their own terms and ways of doing things. It is essential to have an in depth knowledge about everything to understand different prospective of business. This phase includes three stages:
Stage1 : To have the knowledge of all the factors that affects the discount to be given given to differ different ent HVOs HVOs.. Th This is includ includes es factor factorss like like sales, sales, comp competi etitor’ tor’ss strategy, negotiation, etc. Stage2: To collect the data of sales and discounts of different HVOs. This includes the collection of data of sales and discounts for the year 2006 and 2007 of different HVOs being served by the company. It includes direct as well as indirect HVOs. Stage3: This stage involves the short listing of the HVOs for personal visits and for making inter comparison of the discounts of the HVOs on the basis of their sales volume.
1.2.2 Analysis phase: After being familiar with the basics of the business, the next part of the project work includes personal market visits and visits through route rides to detect any kind of wrong practices being adopted by the salesmen and the distributors to fetch out their own personal benefits from the discounting system. It also includes analyzing the discounts given to the short listed HVOs and to make a comparative study of the discount and sales volume of the HVOs.
1.2.3 Interpretation Interpretation Phase:- After carefully analyzing the discounts of various HVOs, the next part involves finding out the variations where some HVOs are getting higher disc discou ount ntss on diff differ eren entt pack pack size sizess as comp compar ared ed to othe otherr shor shortt list listed ed HVOs HVOs and and recommendations have to be made as to how the leakages can be reduced and a fair discounting system can be maintained. The basic aim of this stage is to give suggestions that can work as decision making information which will be solely for the use of the organization.
2. HINDUSTAN COCA-COLA BEVERAGES PVT. LTD. 1 COMPANY CO MPANY PROFI PR OFILE LE Coca-Cola (also known as Coke, a name that was trademarked by The Coca-Cola Company after it was discovered many people called it by that particular name) is a very popular cola (a carbonated soft drink) sold in stores, restaurants and vending machines in more than 200 countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often referred to as simply Coca-Cola or Coke. Coke is one of the world’s most recognizable and widely sold commercial brands; its major rival is Pepsi.
Coke was originally intended as a patent medicine when it was invented in the late 19th 19th centur century y, Coca Coca-C -Cola ola was was bou bought ght out by busin business essma man n Asa Asa Grig Griggs gs Candl Candler er,, whose whose marketing tactics led Coke to its dominance of the world soft drink market throughout the 20th century. Although faced with critiques of its health effects and various allegations of wrongdoing by the company, Coca-Cola has remained a popular soft drink to the present day It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time thanks to a belief that carbonated water water was good for the health. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight months only nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on March 12, 1894, and cans of Coke first appeared in 1955. By 1888, three versions of Coca-Cola - sold by three separate businesses were on the market. On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned a launch of a Diet Coke product sweetened sweetened with the artificial sweetener sucralos sucralosee ("Splen ("Splenda") da"),, the same same sweeten sweetener er currentl currently y used in Pepsi Pepsi One. The company company actually produces concentrate for Coca-Cola, which is then sold to various Coca-Cola bottlers througho throughout ut the world. world. The bottlers bottlers,, who hold territo territorial riallyly-excl exclusiv usivee contract contractss with with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise CocaCola in cans and bottles to retail stores and vending machines. Such bottlers include CocaCola Enterprises, which is the single largest Coca-Cola bottler in North America and Europe. The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service distributors. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke brand name. The most famous of these is Diet Coke, which has become a major diet cola but others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns and markets other soft drinks that do not carry the Coca-Cola branding, branding, such as Sprite, Fanta, and others. The actual production and distribution of Coca-Cola follows a
franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers throughout the world who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants and food service distributors. The bottlers are normally also responsible for all advertisement and other sales initiatives within their areas. Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. The products of the company reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most most are are indepe independe ndent nt busine business sses. es. Using Using syrup syrups, s, conce concentr ntrate atess and bever beverage age bases bases produced by the Coca-Cola Company, their global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide. The CocaCola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for their consumers. The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977; an honor awarded very few packages. The most valuable assets happen to be the trademarks they possess. For Coca-Cola, the most drunk soft drink on earth is one of the world s best-known and most admired trademarks, recognized by more than 90 percent of the world s population. Interestingly, Interestingly, the world that is touched by the cherished drinks for every moment, the Coca-Cola trademarks happen not only to be their most valuable assets but of the the enti entire re eart earth. h. Th Thee busi busine ness ss syst system em of the the Compa ompany ny in Indi Indiaa dire direct ctly ly empl employ oyss approximately 6,000 people, and indirectly creates employment for many more in related industries through our vast procurement, supply and distribution system. On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our brands in every nook and corner of the country. The term soft drink originally applied to carbonated drinks made from concentrates, although it now commonly refers to almost any cold drink that does not contain alcohol.
Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US based based Coca-Col Coca-Colaa Company Company.. The company company-own -owned ed Bottlin Bottling g arm of the Indian Indian Operati Operations, ons, Hindustan Hindustan Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribu distribution tion of beverage beveragess across across the country country.. Coca-Co Coca-Cola la India India is among among the country country’’s top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations . It is the world’s largest selling soft drink since 1886. The Coca-Cola Company returned to India in 1993 after a gap of 16 years giving new Thums up to the Indian Soft Drink Market and took over the ownership of the nation's top soft-drink brands and bottling network. The vast Indian operations comprises comprises 25 wholly company owned bottling anotherr 24 bottling operation operationss and anothe franchisee owned bottling operations and a network of 21 contract packers also manufactures a range of products for the Company.
2.2 GENERATIONS IN COCA COLA 2.2.1: 1886-1892
Atlanta beginning It was 1886, and in New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles away, another great American symbol was about to be unveil unv eiled. ed. Like Like many many people people who who change change histor history y, John John Pembe Pembert rton, on, an Atlan Atlanta ta pharmacist, pharmacist, was inspired by simple curiosity. curiosity. One afternoon, afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he carried it a few doors down to Jacobs' Jacobs' Pharma Pharmacy cy.. Here, Here, the mixture mixture was combined combined with carbonated carbonated water water and sampled by customers who all agreed -- this new drink was something special. So Jacobs' Pharmacy put it on sale for five cents a glass. 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, year, Pemberton sold just 9 glasses of Coca-Cola Coca-Cola a day. A century century later, later, The CocaCola Company has produced more than 10 billion gallons of syrup. Unfortunately 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 businessman Asa 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.
2.2.2: 1893-1904
Beyond Atlanta Coca cola hires first celebrity spoke person music hall performer Hilda Clark 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 gave away away coupon couponss for for compli complime menta ntary ry first first taste tastess of CocaCoca-Co Cola la,, and and outfit outfitte ted d distributing pharmacists with clocks, urns, calendars and apothecary scales bearing the CocaCoca-Co Cola la brand. brand. Peopl Peoplee saw saw CocaCoca-Co Cola la every everywh where ere,, and the aggre aggressi ssive ve promotion worked. By 1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles. Inevitably, Inevitably, the soda's popularity 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 CocaCoca-Co Cola la in bottle bottles. s. He sent sent 12 of them them to Candl Candler er,, who who respo responde nded d witho without ut 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 Chatt Chattano anooga oga lawy lawyers ers,, Benj Benjami amin n F. Th Thoma omass and Joseph Joseph B. White Whitehea head, d, secure secured d exclusive rights from Candler to bottle and sell the beverage -- for the sum of only one dollar.
2.2.3: 1905-1918
Safeguarding the brand Coca cola enjoyed in 8 countries worldwide.To combat copycats coca cola develops unique bottle 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 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 Terre Haute, Indiana, won a contest to design a bottle that could be recognized in the dark. In 1916, they began manufac manufacturi turing ng the famous famous contour contour bottle. bottle. The contour contour bottle, bottle, which remai remains ns the signa signatur turee shape shape of CocaCoca-Co Cola la today today,, was was chosen chosen for its its attra attracti ctive ve 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 countrie countriess and U.S. territori territories. es. In 1900, there were two bottlers bottlers of Coca-C Coca-Cola; ola; by 1920, there would be about 1,000.
2.2.4 1919-1940
The woodruff legacy Coca cola enjoyed in 53 countries world wide. It introduced 6 packs. In 1925 6000000 drinks per day. Perha Perhaps ps no person person had more more impac impactt on Th Thee Coca Coca-C -Cola ola Compan Company y than than Rober Robertt Woodruff. In 1923, four years after his father Ernest purchased the Company from Asa Asa Candl Candler er,, Wood oodruf rufff became became the Comp Company any presid presiden ent. t. Whil Whilee Candl Candler er 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 marke marketin ting g genius genius who who saw opp opport ortuni uniti ties es for expans expansion ion every everywh where ere.. He led led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the Olympic Games for the first time when Coca-Cola traveled 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.
2.2.5: 1941-1959
The war and its legacy Coca cola enjoyed in 120 countries world wide. Introducing Coke. In 1961 Sprite is introduced. 1963 Tab Company’s first diet soft drink is introduced In 1941, America entered World War II. Thousands of men and women were sent overseas. The country, country, and Coca-Cola, rallied behind them. Woodruff Woodruff ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents, wherever he is, and whatever it costs costs the the Comp Company any." ." In 194 1943, 3, Gener General al Dwigh Dwightt D. Eise Eisenho nhowe werr sent sent an urge urgent nt 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 finally came, the foundati foundations ons were laid for Coca-Co Coca-Cola la to do business business overseas. 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 his imagery of its advert advertisi ising ng -- happy happy coupl couples es at the drive drive-in -in,, caref carefree ree moms moms drivi driving ng big yello yellow w convertibles -- reflected the spirit of the times. 2.2.6: 1960-1981
A world of customers Coca cola enjoyed in 163 countries world wide. It introduced can in 1960. In 1981 Roberto c. Goizueta became chairman and CEO of the coca cola company After 70 years of success with one brand, Coca-Cola®, the Company decided to expand with new flavors: Fanta®, originally developed in the 1940s and introduced in the 1950s; Sprite® followed in 1961, with TAB® in 1963 and Fresca® 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 more places places:: Cambod Cambodia ia,, Mo Monts ntserr errat at,, Para Paragua guay y, Macau Macau,, Turkey urkey and more 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 World a Coke." In 1978, The Coca-Cola Company was selected as the only Company allowed to sell packaged cold drinks in the People's Republic of China.
2.2.7: 1982-1989
Diet coke and new coke Coca Coca cola cola enjoy enjoyed ed in 165 165 coun countr trie iess worl world d wide wide.. In 1982 1982 diet diet coke coke is introduced. The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much much chang changee and innov innovati ation on at Th Thee CocaCoca-Co Cola la Comp Company any.. In 198 1981, 1, Rober Roberto to 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 with a strategy he called "intelligent "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 lowcalorie drink in the world, world, second in success only to Coca-Cola. Coca-Cola. One of Goizueta's 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, comm common only ly call called ed “new “new Coke Coke.” .” In the the real real worl world, d, they they had had a deep deep emot emotio iona nall 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. 2.2.8: 1990-1999
New markets and brands In 1993 pet bottkles are introduced. Coca cola enjoyed in 200 countries world wide. Thee 199 Th 1990s 0s were were a time time of conti continue nued d growt growth h for Th Thee CocaCoca-Co Cola la Comp Company any.. Th Thee 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 Official Soft Drink of NASCAR NASCAR racing, connecting the brand with one of the world's fastest growing growing and most popular spectator spectator sports. And 1993 saw the introduction 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 product productss were sold in East Germany Germany in 1990 and returned returned to India in 1993. New beverages beverages joined the Company's line-up, line-up, including Powerade® Powerade® sports drink, Qoo® children's fruit drink and Dasani® bottled water. The Company's family of brands further expanded through acquisitions, including Limca®, Maaza® and Thums Up® in Indi India, a, Barq Barq''s® root root beer beer in the the U.S. U.S.,, Inca Inca Kola Kola® ® in Peru Peru,, and and Cadbu adbury ry 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.
2.2.9: 2000 and Now
Coca cola now In 188 1886, 6, CocaCoca-Co Cola la® ® broug brought ht refres refreshm hment ent to patron patronss of a small small Atlanta Atlanta pharmacy. pharmacy. Now well into its second century, century, the Company's Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola 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. CocaCola 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.
2.3 COMPETITOR ANALYSIS
Indian soft drinks market is predominantly controlled by two major multinationals namely Coca- Cola and Pepsi, which have carefully stifled out the local competition here in India. Penetrating tough Indian psychology and making their products feel accepted was the toughe toughest st chall challeng engee in front front of them. them. A brief brief overvi overview ew of the soft soft drinks drinks giant giant bigges biggestt competitor will help in gaining a better insight of the soft drinks market in totality.
2.4 CURRENT MARKET POSITION
There has been much controversy and debate on the market share standings between the two companies in the Indian subcontinent and a substantial and a consolidated consolidated figure has been unavailable for reference. This is mainly because both companies had approached different market research companies for making a study about the market share standings. Pepsi Co had approached approached IMRB while Coca- Cola had entrusted this responsibility on ORG. According to the survey done by IMRB Pepsi’s market share was found to have increased from 47% to 49% while according to the study conducted by ORG Coca- Cola’s market share was claimed to be 59%.
2.5 FACTORS AFFECTING BUSINESS •
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Seasonality: Seasonality is one of the most important factors that affect the soft drink business. Seasonality is primarily influenced either by the weather, or by holidays and religious festivals. Within the Group, soft drink business has different seasonal cycles throughout the year. Service frequency: frequency: This is another factor that affects the business. Service frequency is the time gap between visiting a particular outlet again. Service frequency directly affects the rotation time which in turn affects the value of business. Demand pattern for the market: Every product has a different demand pattern and affects the business. Price of the product: Price of the soft drinks also affects the business. Due to perfect competition in soft drink market, price of a product plays a major role in business. Disposable Income: Disposable Income of the consumers also affects the business of the soft drink drink players. players. A high disposab disposable le income income of the consumers consumers ensures ensures a high demand for the products in the market. Demographic Profile: Demographic profile of consumer also affects the business and needs to be considered. Competitor’s Policy: The policies of the competitors also affect the working of the business of other companies.
Thee gov govern ernme ment nt polici policies es relate related d to taxat taxation ion or politi political cal Governme Government nt Policies Policies: Th interference also affect the business of the players in the soft drink industry.
2.6 PRODUCTS AND PACK SIZES:
Coca-cola is the world's favorite drink. It is the world's most valuable brand and the most recognizabl recognizablee word word across across the world. world. Coca-Co Coca-Cola la has a truly truly remarka remarkable ble heritage heritage.. From a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world. In India India,, CocaCoca-Co Cola la was was the leadi leading ng soft-d soft-drin rink k till till 1977 1977 when when gov govt. t. polici policies es necessit necessitated ated its departur departure. e. Coca-Co Coca-Cola la made its return return to the country country in 1993 and made made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation. Over the past ten years it has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all the brands in the portfolio grew leaps and bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan and Hrithik Roshan.
Thums Up
is a leading carbonated soft drink and most trusted brand in India. Originally Originally introduced in 1977, Thums Up was acquired by the Coca-Cola Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.
Fanta
Internationally, Fanta - The 'orange' drink of the Coca-Cola Company, is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst".
Fanta is perceived as a fun youth brand and stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends.
“Lime n' lemoni Limca” , the drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year ear and and Limc Limcaa cont contin inue uess to be the the lead leadin ing g flav flavor or soft soft drin drink k in the the coun countr try y. The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes, refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new person.
Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries. In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. With a strong appeal to the youth, Sprite has stood for a straight forward and honest attitude. It’s clear crisp refresh hingtaste encourages the today's youth to trust their instincts, influence them to be true to who they are and to obey their thirst.
Maaza was launched in 1976. It is a drink which offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India and it currently dominates the fruit drink market. Over the years, brand Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango, Maaza Mango" and "Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, wholesome, natural, fun drink which delivers the real experience of fruit. The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"
Kinley Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. The importance of water can never be understated. Particularly in a nation such as India where water governs the lives of the millions, be it as part of everyday rituals rituals or as the monsoon which gives life to the sub-continent. sub-continent. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola Coca-Cola Company. Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced. Because the company believes that right to pure, safe drinking water is fundamental. It’s a universal need which cannot be left to chance.
The below table shows the brands and products of different pack sizes being sold by the company in Kanpur region: BRAND NAME
GLASS
TETRA PACK
PE T
CAN
FOUNTAIN
Coca-cola
200 ml and 300ml
-
600 ml, 1.25l and 2l
330 ml
Various sizes
Thums up
200 ml and 300ml
-
350 ml, 600 ml, 1.25L and 2L
330 ml
Various sizes
Fanta
200 ml and 300ml
-
600 ml, 1.25L and 2L
330 ml
Various sizes
Limca
200 ml and 300 ml
-
600 ml, 1.25L and 2L
330 ml
Various sizes
Sprite
200 ml and 300 ml
-
350 ml, 600 ml, 1.25L and 2L
330 ml
Various sizes
Maaza
200 ml
200ml
600 ml, 1.2L
-
-
-
500 ml, 1L
330 ml -
-
Diet Coke Kinley Water
The different pack sizes on which discount is given by the company is: 200 ml RGB1 CSD2 250 ml juice3 300 ml RGB CSD 600 ml Pet4 CSD 1200 ml Pet Juice 2000 ml Pet CSD 330 ml Can CSD 200 ml Tetra Pack Juice • • • • • • • •
1
RGB – Returnable Glass Bottles
2
CSD – Concentrated Soft Drink
3
Juice – Maaza
4
Pet –
Plastic bottle
The below table shows the number of bottles in each case and brands available in different pack sizes.
Pack Sizes
200 ml RGB 250 ml RGB 300 ml RGB
No. of bottles per case 24 24 24
330 ml Can
24
400 ml 500 ml Pet 600 ml Pet
24 24 24
200 ml Tetra P 1 L tr 1.2 ltr Pet 2 ltr Pet 2.25 ltr Pet
27 12 12 9
Brands
Coke, Fanta, Limca, Thums up and Sprite Maaza and Minute Maid Pulpy Orange Coke, Fanta, Limca, Thums up, Kinley Soda and Sprite Coke, Fanta, Limca, Thums up, Sprite and Diet Coke Minute Maid Pulpy Orange Diet Coke, Kinley Soda and Kinley water Coke, Fanta, Limca, Thums up, Sprite and Maaza Maaza Kinley Water Maaza and Minute Maid Pulpy Orange Coke, Fanta, Limca, Thums up and Sprite Coke, Thums up and Sprite
3. CLAIMS
3.1 INTRODUCTION:
Responsible for building and maintaining relationships with distributors in order to maximize sales and ensure proper execution of pricing and promotional programs. Claims are those those which which are effect effective ive to increase increase the sale of compa company ny.. The The clai claims ms are the promotio promotional nal schemes given by the company to the distributors for the retailer in order to increase the sale. The distributors have some special agreements with company. There are pre decided sale volume agreement between company and distributors. They have monopoly outlets to sale the HCCBPL’s products. They are not supposed to sale any other brand besides coca cola.
3.2 AN IMPORTANCE IMPORTANCE OF O F CLAIMS
The claim is the amount which is to be reimbursed to the distributor on the scheme run by him in the market. These are the promotional scheme given to the distributor to give it to the retailer in order to increase the sales of the company. In order to earn more and more by the help of extra sale these scheme are very helpful and in order to survive from the competitors these schemes carry much importance. In this series of articles, I will highlight the importance and steps of Claims, an approach to segmentation and categorization of accounts.
3.3 CLAIMS STRATEGY
The recommended approach is suggested below:
Step 1: Group our distributors according to the volume they do in the market and decide the budget according to the volume done by them and make an agreement with them.
Step 2: Include contribution margins and direct profit or any other financial matrices that make sense for our business.
Step 3: Identifying the profitable monopoly outlets of the distributors from their prospective and make an agreement with based on proposed budget to the ASM and SE and the understanding of the distributor.
Step 4: After the agreement is tied the MER is opened of each pack i.e 600 ml, 200ml, 1.25l, 2l and IL water.
3.4 3.4 WO WORK RKIN ING G OF CLAI CLAIM M Step 1: Company does 75 percent of its business by the help of distributors and the rest is done by the Direct Route Operation (DRO). In DRO what ever sale is made it is of cash not on credit so any sale made the discount is given at the spot to the retailer and a credit note is prepared and the amount is credited to the retailers account. But in case of Indirect selling sale is done to by the help of distributors. The The are of operation is divid divided ed into into variou variouss territ territori ories es and each each territ territory ory is appoi appointe nted d an Area Sale Saless Manager (ASM), Senior Executive (SE) and Route To Market Executive (RTM). Each territory is appointed a budget based on the volume done by the area and ASM decides what budget is to be given to the distributors based on the volume done by them. Step 2: once the budget is decided by the ASM the MER is blocked for each an every distributor. The MER is blocked in every fortnight i.e. in every 15 days. Claims are divided into various buckets, and there are two buckets in a month and 24 buckets in a year. The schemes are given of two types one is bottle scheme and other is the monopoly schemes. In bottle scheme the distributor gives free bottles on sale of 1 case or crate say scheme of 2 bottle of 200 ml on sale of 1 case of 200 ml. and in the monopoly a fixed amount is given on sale of 1 case of a particular pack say 200 ml, 600ml, 1.25L, 2 and many more. In monopoly the distributor claim on of the free bottle given and in monopoly the claim is made on the discount given on sale of 1 case of any pack. Step 3: odd buckets contain only bottle scheme claims i.e. 1, 3,5,7,9,11,13,15 etc and even contain both i.e. 2,4,6,8,10,12,14 etc, because the monopoly scheme is for a month and the bottle scheme is for a specific date or period. When the scheme is run by the distributor in the market he is specified of the scheme by the company and also about the period or the date. A top sheet is prepared in which the MER no is given and the details of the scheme and the date is given. Once the scheme is given to the retailers the distributor after the 15 of the month fills the top sheet and attach the secondary sheet which shows the sale made or not along with the bill and send it to the company for reimbursement. Step 4: Then the executive in the finance team check the scheme given by verifying the sale made in the secondary sheet. If the claim is more than the secondary sheet then he deducts the excess amount and if the claim is equal or less then the sale then he passes the claim amount. If the claim made is more then the MER blocked volume then the claim is deducted and the blocked volume is passed and the rest is cut from the claim. Step 5: In the monopoly claim if the distributor is claiming any amount more then the MER blocked then we have the right to pass it but till the limit i.e. not more than the agreement volume. But we have to look after the blocked volume in that bucket and if the claim volume is excess then we forward the volume to the net bucket say from 8th bucket to 10th bucket
4. FREIGHT PAYABLE
Freight is a major cost head of the company. Every company puts an extra effort to reduce this head to the best possible extent in order to reduce its cost of the product. The Company pays two types of freight which includes freight inward and freight outward Freight inward is the amount that is paid by the company for acquiring goods like raw material, advertising goods or for bringing finished goods in the company. Like wise the company purchases sugar, sugar, Carbon Di Oxide for manufacturing various types of beverages in its product portfolio. Freight Outward is the sum that is paid by the company for delivering goods by the transporters at the distributor’s outlet. The freight rates are previously determined by the company with the help of a contract/ agreement which is made to acquire services on a yearly basis. The rates The rates for vario various us stati stations ons are are negot negotiat iated ed and and after after the proce process ss of negot negotia iatio tion n the agreement agreement is made or renewed for providing services. The The agreement includes various terms and conditions which is applicable from when the truck is hired for a station till the time it does not reaches the destination. Like one of the condition is of detention which means that the truck should be unloaded by the distributor within 24 hours of reaching the distributors outlet if the truck is detained for more than 24 hours then the company has to pay extra charges to the transporter so as to remunerate the labour employed by the transporter. The amount paid in lieu of detention depends upon the load size the truck is taking to the distributor’s outlet. Likewise if the load size of 300 – 350 cases (crates) the amount of detention is Rs.300 for the first three days and Rs. 400 there onwards. If the load size is of 351 – 600 cases then Rs. 450 for the first three days and Rs. 500 there onwards.
But the detention is not payable if the transporter writes in the invoice was detained for two days. On the invoice the distributor gives the receiving about the detail of goods and he writes the arrival time and departure time of the distributor distributor.. This in turn needs to be verified by the Territory Manager who in turn clarifies with the sales executive and then only authorizes the number of days the vehicle was detained. The transporters bills have supporting invoices which are presented at the time when payment claims are made. The bill gives the detail about the Good Receipt Note Number, Invoice number, Invoice date, Name of the Distributor & station to which the vehicle was sent, vehicle number, load size, amount as per the contract and over load charges if any. Over load charges means that the extra load than the actual capacity of the vehicle. The transporter uses two types of vehicle one of which is DCM Toyota and other one is the normal size of the truck. The maximum load that the DCM can take is 350 cases and the maximum of 550 cases for the other one. Anything above that would be considered for both as overload and the company has to pay the overload charges. Club load means if one vehicle at a time is taking goods to two stations. In this case of the company has to pay Rs. 400 for extra station and the freight rate will be applicable of the station whose fright rate is more amongst the two. The part which takes the most attention while analyzing the freight bills of the company is when the transporter gives the bills it has the supporting invoices invoices along with it which one by one is picked up. The analysis part is of carefully matching the goods receipt note number, invoice number, number, invoice date, the station to which the goods have been invoiced, the quantity as stated on the bill. After this the invoice is seen through on which the distributor gives the receiving of filled bottles. If the distributor writes actual quantity received as per the invoice then no deductions are made and if the distributor writes quantity received in good condition, number of bottles short (bottles not received), number of leakages received, number of bottles found open, number of bursts received then it calls for deduction. There is actually a rebate slab in the contract which tells the maximum number of leakages, bursts, open and breakages allowed depending upon the load size. Short bottles are not allowed and if bottles are found short then the actual amount (glass and flavour) are deductible from the total bill amount.
Particulars Burst/ Breakage’s Leakage/ Open
0 - 350 6 -
351 - 550 10 -
FULLS : Fulls mean bottles with flavors like ThumsUp, Coca-Cola, and Sprite etc… If a bottle is found short then the amount of glass and flavour is deductible as there is no rebate allowed. Similar is in the case if a bottle is found Burst but the difference in Shortage and Burst is that in burst some relief is allowed to the transporter whereas in case of shortage no relief is allowed. In case of leakage or open relief is allowed but the amount deductible is only of flavour and not of glass.
If a bottle is found short / burst then the amount deductible is Rs. 8 for the flavour and Rs. 7 for the glass i.e. 15.
In case of Cans, Pet Bottles whole amount is deductible. deductible. In some cases when the load is like of 700 which includes 200 ml, 300 ml, 330 ml, 1.2 ltr., 2 ltr. And the distributor writes leakages, short, open, found while unloading in all the product varieties then the rebate that would be allowed on will be on 200 ml bottles and rest whole amount would be deductible.
EMPTY: In case of empty the Invoice is matched with “Empty Receipt Advice” Advice” (ERA) that the empty bottles that is being sent by the distributor is being received in full or not. The slab mentioned above is also applicable in this case. But only shortage and breakage of bottles is deductible. Sometimes fulls that are being invoiced in the name of the distributors firm turn out to be less when they are being unloaded in crates that means the bottle as well as the crates is received short. In this case the amount that is deductible is of Crate, Glass and Flavour. Flavour. The total sum of all this turns out to Rs. 397 for 200 ml bottles and Rs. 420. The bifurcation bifurcation is like Rs. 136 for the plastic crate, Rs. 144 for the glass & Rs. 117 for the flavour. The plastic crates are known as ‘Cases on Loans’, glass bottles are known as ‘Returnable glass bottles’.
PERFORMA OF INVOICE OR FULLS DESPATCH ADVICE
InvoiceNumber: 0020/2009-10
Date: 14/6/09
Name of Distributor: XYZ
Vehicle Number:
Transporters Name:
S.No. Particulars
Size
Qty. Qty.
1. ThumsUp (24)
200
100
2. Limca (9)
2.0
25
3. Maaza (24)
250
75
TOTAL TOTAL
200
Rate
Amount
------------- ----
PERFORMA OF EMPTY RECEIPT ADVICE
Name :
No : Date :
Vehicle Number :
Transporters Name :
S.No. Particulars
Size
Qty. Qty.
1. Coca-Cola(24)
300
200
2. ThumsUp(24)
200
100
3. Fanta(24)
300
75
4. Maaza(24)
250
75
TOTAL TOTAL
450
Rate
Amount
---------- ---
SELF CLAIMS: Self claims are made by the distributor when it does not uses the company vehicle in order to receive the goods instead of that it sends his own vehicle to the company and takes the goods on his own risk. In this case no shortages, open bottles, burst or breakage or leakages can be claimed.
The order that is received by the company from the distributor includes the freight and no extra charges are made. In case of self claims the company gives the credit into the distributors account in the tally but the total number of crates is matched. The rate at which the self claims are settled is mutual settlement between the company and the distributor. The rate at which the claim is settled is on a per case basis is far more than what it actually pays to the company hired transporter while delivering the goods at the distributor’s outlet.
5. COKE PENERATION IN RURAL MARKET
In urban areas, the 8 to 10 percent of total sales of coke is through Area Market Contractors (AMC) who is equivalent to big retailers and other outlets. In the village areas .coke uses so called distributors for the sales. A striking feature in the logistics of Coke is that the AMC’s supply material directly using trucks but in case of inaccessibility to retail outlets due to location-constraints, supply is made through auto rickshaws also. The truck also gives the company permanent hoarding space on their sides and backs. Also, as the industry competition is strong dealer push at the point of purchase is an important factor factor for for sales. sales. Th Thee retail retailer er often often can play play manuf manufact acture uress agains againstt each each other other to obtain obtain favorable deals. To avoid this situation coke incorporates a high degree of standardization with respect to the price waterfall elements (the various types of discount offered), through there are differences in the timing. Innovation in availability is something that coke can lay claim to. Coke introduced the pushcart. Cok3e is busy putting in place infrastructure to hit villages with its small 200 ml bottle, priced aggressively at Rs. 5. With 200 ml it has larger market. It is exploding this market with low unit price packs and pushing growth in home consumption through the PET bottles. Coke’s game plan is to have high volume, low margin business. The infrastructure costs will be high but they have to rework their other costs coke credits and discounts and bring them down.
6. ADVERTISEMENT
6.1 ADVERTISING
Advertising Advertising has played an important important role in the success of products since first newspaper add in 1886, which read “Coca-Cola Delicious! Refreshing! Exhilarating! Invigorating!” The company uses adver4tising to trigger desire as often and in as many ways as possible. Through out the years, slogans or coca-cola have been memorable .Here are some highlights: 2000-Coca-Cola Enjoy 1993-Always Coca-Cola 1990- Can’t Beat the Real Thing 1989-Can’t Beat the Feeling
You 1986-Red,White and You 1982-Coke Is It 1976-Coke Adds Life 1971-I’d Like to Buy the World a Coke 1969-It’s the Real Thing 1963-Things Go Better With Coke 1959-Be really Refreshed
1944-Global High Sign 1942-It’s the Real Thing 1936-It’s the Refreshing thing to do 1929-The Pause That Refreshes.
6.2 BRAND AMBESSDORS
Coca-Cola had signed on various celebrities including movie stars and cricket players such as Shahrukh Khan, Hritik Roshan, Amir Khan, Akshay Kumar, Aishwerya Rai, Vivek Oberai, Rani Mukherjee, Bipasha Basu, Riya Sen, Saurav Ganguly, Virendar Sehwag, southern celebrities like Vijay in the past and today its brand ambassadors .
7. MISSION AND LEADERSHIP
7.1 MISSION
Our mission is to refresh the world in mind, body & spirit and to inspire moment of optimism through our brand and our action. Create consumer products, services & communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage & deliver superior value to: • • • • •
• •
Consumers as a superior beverage experience. Consumers as an opportunity to grow profits through the use of finished drink. Bottlers as an opportunity to grow profit and volume. TCCC as a trade mark enhancement & positive economic value added. Suppliers Suppliers as an opportunity to make reasonable profits when creating real value added in an environment of system-wide teamwork, flexible business system & continuous improvement. CCI Associates as superior career opportunity. Indian society in the form of a contribution to economic and socio development.
7.2 LEADERSHIP
“There’ “There’ss never been a better time to be the part of The Coca-Cola Coca-Cola Company. Company. Our people are dedicated to strengthening relationship with stake holders and communities everywhere.”
Mr. Mr. Isde Isdell ll lead leadss the the Coca Coca-C -Col olaa Comp Compan any y into into the the new new cent centur ury y with with a firm firm commitment to the values and spirit of the world’s greatest brand. Under Isdell’s leadership, the Coca-Cola Company is positioned for growth, guided by the mission to provide the branded beverage that refresh people around the world, anywhere, anytime, everyday. By making key decision making closer to the local markets, it has spurred innovation, accelerated growth and fostered deeper connection to the consumer. Simply put they are closure than over to us. A talented and highly experienced world wide management team coordinates the new, nimble and entrepreneurial network .The local strategy enables them to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. The company quotes “what people want in the beverage is reflection of who they are, where they live, who they work and play, and how they relax and recharge. Whether you are a student in the United States enjoying a refreshing Coca-Cola, women in Italy taking a tea break, a child in Peru is asking for a juice drink, or couple in Korea buying bottled water after a run together, we are there for you.” The compan The company y is deter determi mined ned not only only to make make great great drinks drinks,, but also to contri contribut butee to communities around the world through the commitments to the education, health, wellness, and diversity div ersity.. It strives be good neighbour, consistently shaping its business decision to improve the quality of life in the communities in which it does business. It is a special thing to have billions of friends around the world, and the company never forgets it.
8. MANUFACTURING PROCESS
We at Coca-Cola are committed to manufacture our products with utmost care and with quality at top priority which makes it the world leader in the soft drink industry. Following is the overview of the stringent Processes adopted in manufacturing before our quality product reaches finally to our proud consumers.
8.1 WATER TREATMENT:
We at HCCBPL Varanasi Varanasi follow a batch treatment trea tment which includes incl udes coagulation coagulat ion & flocculation. floccula tion. The method ensures disinfection and settling of all macro impurities impurities and thereafter thereafter it pass to sand, carbon filters to remove off odour ,off colour, colour, off taste, and thus it is strictly bought in line with the WHO requirements. We are also using state of art –micron filtration process where the water is filtered up to the extent of 1 micron before it is fed to the process. This extensive treatment of water under strict monitoring and sampling for quality leads to pure hygienic water with the highest quality meeting the Coca-Cola standards.
8.2 SYRUP PREPARATION: PREPARATION:
Coca-Cola Coca-Cola uses highest quality of sugar which is controlled and ensured by its stringent stringent prelaid standards, which serves as the strict criteria before acceptance of a lot. To ensure high quality of syrup, it is subjected to hot treatment wherein it is given a contact time with hyflo and carbon at elevated temperature. It is then passed through a filter press which removes the carbon particles and other impurities before it declared fit for concentrate mixing. All this process takes place under the strict vigil by the quality department which maintains the appropriate records of the numerous tests carried out in the entire process which makes it a foolproof process. In the ready syrup tank the pre-decided quantity of concentrate is mixed to the simple syrup in very strict hygienic condition to yield final syrup. The entire syrup manufacturing area is maintained under a constant positive pressure which rules out the possibility of any external particles entering into the process room.
8.3 CONTAINER WASHING:
Conta Contain iner er has been been identi identifi fied ed as one of the major major criti critical cal contr control ol point point in the entire entire manufacturing process & that’s the reason that company has laid some of the very stringent and foolproof systems which ensures Coca-Cola product to be of the highest quality and reflects our commitment towards delivering the best in class product to the consumers. The bottles received from the market are loaded on the conveyor by the uncasing machine and the arrays of the unwashed bottles passes through the four pre-wash inspections stations which ensures removal of rusty neck bottles, excessively dirty bottles, bottles carrying foreign matter, foreign bottles. And thus the good bottles pass into the bottle washing machine which uses intensive mechanical and chemical processes to clean and disinfect the bottles thoroughly and ensures the bottles to be ready for filling. However as an additional safety, there is again a post wash inspection station comprising of 4 sub-stations, which ensures removal of the chip necked bottles and suspected bottles from the lot. Thus the bottles are subjected to series of stringent inspections before it is fed to the filler for filling.
8.4 MIXING, PROPORTIONING:
Proportioning is basically a process where ready syrup is diluted in a predetermined fixed proportion with water and carbonated concentrate in to beverage conforming strictly to company’s norms and specifications. It is carried out by an Italian Machine-MOJONNIER.
8.5 FILLING & CROWNING:
The chilled carbonated beverage fed by the MOJONNIER MOJONNIER is filled into the bottles through a rotator machine named FILLER. The bottles are immediately crowned by crowner (adjacent to the filler) and thereafter bottles passes through the date coding machine which enable the consumer to be 100 percent sure of consuming a perfectly safe and fresh product.
8.6 FINAL INSPECTION:
After date coding, there is once again a final inspection station where where light inspectors all low or high filled bottles and permit only the saleable product to pass through for casing to the caser machine.
8.7 MANAGING MANA GING THE WASTE WATER:
Production lines maintain the waste water from the bottle washers, Syrup and Filler rooms. Entire waste water generated is treated at Waste Water Treatment Plant and discharged through a 800 meters long pipeline specially laid to discharge the treated waste water away from inhabited areas. Part of this water is being used for gardening purpose within the plant premises.
8.8 MARKET & CUSTOMERS:
Once the finished product is ready, it is transported to the distribution centers and then to retail outlets by way of route trucks. The consumer buys the soft drink from the retailer outlets. The empty bottles are simultaneously collected by the distribution channels at the time of dispensing the finished products.
8.9 SUPPLIERS AND OTHER BUSINESS PARTNER:
Other than water and concentrate, bottling operation require sugar, CO2, bottles, crates and other miscellaneous materials. The Coca-Cola India division has a Supplier authorization p prog rogram ram where where suppl supplier ierss are are autho authori rized zed based based on a defin defined ed criter criterion ion.. En Envi viron ronme ment ntal al considerations are amongst the critical of these criterions.
8.10 EMPLOYEES, PLANTS & MACHINERY: MACHINERY:
The no of total unit employees is approximately 113 & in summer season, which is a peak season for sale of soft drinks, the plant works for three shift operation round the clock. The overall education level of the employees is good and they obviously have a good expertise in water treatment and purification processes. Extensive in-house training programs are conducted to maintain the competency of the manpower in respective areas. The plant and machinery consists of state of art bottling machinery and test equipment to get consistent quality product at the optimum usage of raw materials. The plant also has an extensive quality test laboratory with equipment like spectrophotometer, density meter, micro lab etc. to conduct on the spot tests at various stages of production. A typical bottling line will consist of uncaseruncaser- pre wash inspection station –conveyers-bottle –conveyers-bottle washer-post washer-post wash bottle inspection station—filler station—filler-final -final light inspection inspection station-conveyor station-conveyor-and -and caser.
9. SWOT ANALYSIS ANALYSIS
Coca-Cola Company is one of the leading MNC in the world. It has made a remarkable growth since it origin and it has got a good potential in spite of various hurdles coming its way. By going through its SWOT analysis we can know much more about the company.
STRENGTH: The company has got various strengths, which leads the company be a market leader. Some of the strengths listed below:
A) Strong product line:
The company has got various fast moving products which are going great job in the market. These soft drinks not only quench thirst but also refresh everyone it touches. One of the strong brands of the company is Thumps Up, which specially doing well in the Indian market. It has captured one of the major shares of the soft drink market.
B.) Advertising:
Advertising Advertising plays a major in promoting sales of the product. The company has got one of the best advertising strategies. Appointing film actors, as the brand ambassadors, makes a great impact on the mind of the customers. The company should try to launch more and more advertising and sales campaigns to promote sales to the maximum
WEAKNESS: As no man in this world is a complete man and so are the companies. Every company has got weakness so as Coca-Cola Company too. Some of the weaknesses which the company should overcome are as follows:
A.) Distribution network:
The company has got an average distribution network this is one of the reason why the company fails to fulfill the demand of the customer at time of peak seasons. It must go for some more bottling plants and should opt for better distribution channels to increase the sales in the best possible manner.
B.) Pricing strategy: strategy:
The company has got a pricing strategy as there is no certainty of rising or fall of price during the peak season. This also hamper the sales of the company as the retailers and distributor get dilemma whether to place the next order or not as increase or decrease in price may hamper their profit margin and blockage of the goods.
OPPORTUNITIES: Inst Instea ead d of weak weakne ness ss and and thr threats eats the the comp compan any y the the comp compan any y has has got got vari variou ouss opportunities to which it has to go for. The opportunities for the company are as follows:
A.) Large Market:
As India is said to be one of the biggest market in the world, thus the company survive for long and can expands to its length and width. Still there are thousand of villages which have not been covered by soft drink companies. If the company targets the rural market it can easily make large profits and thus can also satisfy its aim to benefit and refresh the whole nation. B.)Launch of other brands:
Coca- Cola Company has got more than 300 brands which is running successfully over the world. Thus it can launch some more brands in the country, after studying the demand and desire of the people and can deep its roots by winning their minds and hearts.
THREATS: Some of the threats which the can face: (A) Competitors:
One of the strong competitors of the company is Pepsi Co. thus it has to formulate such strategies which make it to remain one step ahead and give a strong competition to the competitors. Some of the other competitor in the path of growth to the company is the local soft drinks manufacturers who play an active part at the time of peak season. The other local refreshers like Nimbu Pani, lassi, fruit juice etc. which hampers the sales of the company.
(B) Govt. Policies:
The policies of the government also play a major role for the company. The company can not perform well or in its own way by violating the rules of the government. Thus if the govern gov ernme ment nt formu formulat lates es some some polici policies es which which create createss hindra hindrance ncess in the worki working ng of the company it will prove to be one of the major threats.
10. MANAGEMENT STYLE
DONT •
•
The company discourages such conduct and habits which are likely to undermine the way of life in the organization. If it is mandatory for the company to adopt both the accounting standards i.e. UGAAP & IGAAP, then the company should make sure there should not be violation of any of the accounting standards in UGAAP as well as in IGAAP at any cost.
DOES •
•
The company should make aware and impart knowledge to the employees regarding clear cut bifurcation of standards used UGAAP & IGAAP. The company should take necessary steps so that paper work should be as less as possible, but this should not be at the cost of effectiveness in work.
NOTE :
STATES STANDARDS – GENERALLY ACCEPTED 1. UGAAP -- UNITED STA ACCOUNTING PRINCIPLES GENERALLY ACCEPTED ACCOUNTING ACCOUNTIN G 2. IGAAP -- INDIAN GENERALLY PRINCIPLES
11. ANNEXURE ANNEXU RE
Annexure 1 : Market Share of Coke and Pepsi
Market Share as per ORG
Coca- Cola
59%
Market Share as per IMRB
Pepsi 41%
Coca - Cola
Pepsi 49%
51%
** The following shares were calculated with respect to only Pepsi and Coca- Cola. Other companies were not brought under the purview of the research by the research organizations.
Annexure 2 : Factors affecting soft drinks market
12. OBJECTIVES OF THE STUDY
To study study Ho How w the Financ Finance e Depart Departmen mentt of “Hindu “Hindusta stan n CocaCoca-Col Cola a Marketing Company works.
To have a broad view of the company’s financial policies.
To learn what points are considered while processing claims of the discount schemes or general bills.
To ensure that processes are within policies and procedures of the company.
To ensure that the payment of the bills is made within the specified amount of time.
To study study what what formal formaliti ities es that that have have to be fulfil fulfilled led while while making making purchases and while making payments.
To ensure the transactions that occur are properly recorded and are recorded with the specified procedures.
To
study the work process of direct route & indirect route.
13. LIMITATIONS OF THE STUDY
10. MANAGEMENT STYLE
Every study has some limitations in terms of time, cost or human error etc…I have tried my best at my level to make it an original and a genuine one. Due to shortage of time it may be that the expectations wouldn’t have been met, still an attempt has been made inorder to represent one of the best reports.
This project report aims at describing the processes that are followed while while making making paymen payments ts to the vendor vendors, s, receivin receiving g paymen payments ts from the distributors. I have tried to explain the actual process but the meaning that it has is not what it actually is.
Some human errors would have been resulted while preparing this project report.
14. REFERENCES
www.coca-colaindia.com .
www.cocacola.com.. www.cocacola.com
www.yahoo.com.. www.yahoo.com
www.wikipedia.com.. www.wikipedia.com
www.google.co.in.. www.google.co.in
Actual processes in which training was received have been defined.
With the help of the senior executives of the company an attempt has been made inorder to define the processes and procedures followed.
