21-12-2012, 03:15 PM
HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED
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INTRODUCTION
Coca-Cola, the product that has given the world its best-known taste was
born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s
leading manufacturer, marketer and distributor of non-alcoholic beverage
concentrates and syrups, used to produce nearly 400 beverage brands. It
sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Company’s
beverage products comprises of bottled and canned soft drinks as well as
concentrates, syrups and not-ready-to-drink powder products. In addition to
this, it also produces and markets sports drinks, tea and coffee. The Coca-
Cola Company began building its global network in the 1920s. Now
operating in more than 200 countries and producing nearly 400 brands, the
Coca-Cola system has successfully applied a simple formula on a global
scale: “Provide a moment of refreshment for a small amount of money- a
billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most
sophisticated and pervasive production and distribution system in the world.
More than anything, that system is dedicated to people working long and
hard to sell the products manufactured by the Company. This unique
worldwide system has made The Coca-Cola Company the world’s premier
soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,
Coca-Cola, more than any other consumer product, has brought pleasure to
thirsty consumers around the globe. For more than 115 years, Coca-Cola
has created a special moment of pleasure for hundreds of millions of people
every day.
The Company aims at increasing shareowner value over time. It
accomplishes this by working with its business partners to deliver
satisfaction and value to consumers through a worldwide system of superior
brands and services, thus increasing brand equity on a global basis. They
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aim at managing their business well with people who are strongly
committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to
ensure compliance with the framework of policies and protect the
Company’s assets and resources whilst limiting business risks.
A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA
Fast 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.
By the turn of the 20th century, the face of the Indian FMCG industry had
changed significantly. With the liberalization and growth of the Indian
economy, the Indian customer witnessed an increasing exposure to new
domestic and foreign products through different media, such as television
and the Internet. Apart from this, social changes such as increase in the
number of nuclear families and the growing number of working couples
resulting in increased spending power also contributed to the increase in the
Indian consumers' personal consumption. The realization of the customer's
growing awareness and the need to meet changing requirements and
preferences on account of changing lifestyles required the FMCG producing
companies to formulate customer-centric strategies. These changes had a
positive impact, leading to the rapid growth in the FMCG industry. Increased
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availability of retail space, rapid urbanization, and qualified manpower also
boosted the growth of the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and
service formats of the FMCG industry by focusing on rural markets, direct
distribution, creating new product, distribution and service formats. The
FMCG sector also received a boost by government led initiatives in the 2003
budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to
manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they
generally sell in large numbers and so the cumulative profit on such
products can be large. Unlike some industries, such as automobiles,
computers, and airlines, FMCG does not suffer from mass layoffs every time
the economy starts to dip. A person may put off buying a car but he will not
put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner
irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which is
growing at the rate of 9% is the fourth largest sector in the Indian Economy
and is worth Rs.93000 crores. The main contributor, making up 32% of the
sector, is the South Indian region. It is predicted that in the year 2010, the
FMCG sector will be worth Rs.143000 crores. The sector being one of the
biggest sectors of the Indian Economy provides up to 4 million jobs. (Source:
HCCBPL, Monthly Circular, March)
The FMCG sector consists of the following categories:
· Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and
Toiletries, Deodorants and Perfumes, Paper products (Tissues,
Diapers, Sanitary products) and Shoe care; the major players being;
Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and
Procter & Gamble.
· Household Care- Fabric wash (Laundry soaps and synthetic
detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners),
Air fresheners, Insecticides and Mosquito repellants, Metal polish and
Furniture polish; the major players being; Hindustan Lever Limited,
Nirma and Ricket Colman.
· Branded and Packaged foods and beverages- Health beverages,
Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads,
Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed
fruits, Processed vegetables, Processed meat, Branded flour, Bottled
water, Branded rice, Branded sugar, Juices; the major players being;
Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and
Dabur
· Spirits and Tobacco; the major players being; ITC, Godfrey, Philips
and UB
1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
In India, beverages form an important part of the lives of people. It is an
industry, in which the players constantly innovate, in order to come up with
better products to gain more consumers and satisfy the existing consumers.