24-11-2012, 05:10 PM
A PROJECT REPORT on ORGANISATION STUDY carried out at Hindustan Coca-Cola Beverages Pvt. Ltd; Bangalore
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INTRODUCTION
oca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 450 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 450 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.”
The Food and beverages sector is witnessing recently large-scale transformation, huge advertisement spending, awareness campaign about the products and brands. Key factors to success are distribution and advertising. A large MNC in the food and beverage industry may be covering as many as 10 lakhs outlets across the country with the help of thousands of distributors.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 123 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.
RED OPERATION
The RED operation (right execution daily) is a tool used by Coca- Cola to measure sales team and distribution performance in the outlets with respect to all parameters execution. Through RED we strive to add values to our retailers and consumer through “Excellence in Execution” at the point of sales. In the CSD sector Coke and Pepsi are the two major competitors. There has been constant price war between the two to increase their sales volume Coca cola has taken Operation Red to increase its sales and gain a competitive advantage over Pepsi.
THE FMCG INDUSTRY- A BRIEF INSIGHT
ast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.
COMPANY BACKGROUND
oca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.
Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.
BOTTLERS
ne of the main ways by which the Coca-Cola system throughout the world maintains a global brand with a local approach is its Bottling system. Since the Coca-Cola Company has over 2,400 products spread over 200 countries, its bottling system has to be the best. Before any Coca-Cola product reaches the consumer in any part of the world, it is produced, sold and distributed by a bottler from that region.
The Bottlers form the link between the brand and the customers and their services help the product reach the customers. The bottlers are local companies which assist the business to get an indigenous perspective which will help cater to its consumers in a far better way. Each bottler maintains a different method to serve their respective regions in an appropriate way.
COCA-COLA INDIA
oca-Cola India has made significant investments to build and continually improve its business in India, including new production facilities, wastewater treatment plants, distribution systems and marketing equipment. During the past decade, The Coca-Cola System has invested more than US $1 billion in India, making Coca-Cola one of the country’s top international investors and in 2003, Coca-Cola India pledged to invest a further $100 million in its operations.
The Coca-Cola System in India includes 24 Company-owned bottling operations and another 25 franchisee-owned bottling operations that directly employ 5,500 local people and create jobs for another 150,000. The Coca-Cola Company and its independent bottlers have been engaged at the international, national and community levels to support programs that protect the environment, conserve water, promote education, and provide healthcare.
PRODUCTS AT A GLANCE
COCA- COLA
The biggest-selling soft drink in history, and the best-known product in the world. It is also considered as the World’s most valuable brand. From a humble beginning in the year 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non-alcoholic beverages in the world.
The word 'Coca-Cola' itself is even thought to be the second most widely understood word in the world after ‘OK’!
DIET COKE
Introduced in the United States in 1982 and in Britain a year later, 'diet Coke' – or ‘Coca Cola Light’ as it’s sometimes known - is now sold in 149 countries across the world, with sales in Britain second only to those of the United States.
Whether diet or light, this is the soft drink for those who live life to the full and embrace a healthy lifestyle, and it's deliciously sugar free.
THUMS UP
Thums Up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquired by Coca Cola Company in 1993. It is similar in flavor to other colas but has a unique taste reminiscent of betel nut and is promoted as a masculine and a bold drink.