Coke Intership
Coke Intership
Coke Intership
Submitted to the Bangalore University in partial fulfillment of the requirement of the Degree of MASTER OF BUSINESS ADMINISTRATION
Bangalore Submitted by
University
TIWARI PRAWIN B. REG NO: 10YUCMA108 Under the guidance and supervision of Internal Guide Prof-SUHAS SHETIYA Faculty ABBS External Guide Mr. VIJAY DESHPANDE HR- HCCBPL
Acharya's Bangalore B School #3, Lingadheeranahalli, Off Magadi Road, Bangalore 560 091, Karnataka, India 2010-2011
STUDENT DECLARATION
I hereby declare that the internship project titled ORGANISATION STUDY AT Hindustan CocaCola beverages Private Limited is submitted in partial fulfillment of requirement for the award of the degree of Master of Business Administration is my original work under the guidance and supervision of Prof- SUHAS SHETIYA, Faculty of ABBS and Mr. VIJAY DESHPANDE Hindustan Coca-Cola beverages Private Limited.
ACKNOWLEDGEMENT
My sincere regards to Prof SUHAS SHETIYA, faculty of Acharyas Bangalore B School, Bangalore. He has been source of inspiration throughout our training, his guidance and advice coupled with sustained encouragement has made this project report possible.
I would like to express my gratitude towards Mr. Vijay Deshpande, HR manager of HCCBPL WADA PLANT for providing me an opportunity to do the project work in their organization, special thanks for the kind cooperation from Mr. Madhusudan Mishra Team Leader purchase Dept. Wada plant Mumbai
Finally, I sincerely acknowledge my parents and my friends who stood by me as a source of inspiration to complete this task and also my respondents who were kind enough to spare time for me.
CERTIFICATE
This is to certify that Mr. Tiwari Prawin B. (10YUCMA108) student of Master of Business Administration, Acharyas Bangalore B-School, Bangalore-560091 has successfully completed the In plant Training on Organizational study of HCCBPL for a period of 4 weeks under the guidance of various departments of Hindustan Coca-Cola beverages Private Limited.
HCCBPL
CONTENTS
CHAPTER
PARTICULARS
PAGE NO:
INTRODUCTION
COMPANY PROFILE
ORGANIZATIONAL STRUCTURE
PRODUCT PROFILE
SWOT ANALYSIS
BIBLIOGRAPHY
Executive Summary
Giant soft drink company Coca Cola has come under intense scrutiny by investors due to its inability to effectively carry out its marketing program. Consequently it is seeking the help of Polarities Marketing Company Pty Ltd to develop a professional marketing plan which will help the business achieve its objectives more effectively and efficiently, and inevitably regain there iron fist reign on the soft drink industry. When establishing a re-birthed marketing plan every aspect of the marketing plan must be critically examined and thoroughly researched. This consists of examining market research, auditing business and current situation (situation analysis) and carefully scrutinizing the soft drink industry and possibilities for Coca Cola in the market. Once Coca Cola have carefully analyzed the internal and external business environment and critically examined the industry in general the most suitable marketing strategies will be selected and these strategies will be administered by effectively and continually monitoring external threats and opportunities and revising internal efficiency procedures.
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 refreshment. As far as the market of soft drinks is concerned, it is facing cut throat competition from the larger number of soft drinks available in the market. Different brands are available in every segment of flavors, but the 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 is the spine of any FMCG 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 essential to have a good distribution network which should be better than that of its competitors. Distribution is the key area for any FMCG business. For a smooth distribution network, it is essential to keep the retail outlets satisfied which in turn mainly depend upon the 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 their profit margin. Sometimes the company also provides incentives to the outlets which make frequent and high purchases. To meet stiff and challenging competition from some of the other brands, it is essential for the company to have an effective and efficient distribution network. Therefore, the company tries to keep the outlets satisfied by offering discounts and some other incentive schemes from time to time.
History of Company
John Pemberton
In 1886, John Pemberton created Coca-Cola in Atlanta, Georgia, and sold it at a local pharmacy. His partner and bookkeeper Frank Robinson named the product and drew the famous flowing Coca-Cola script. Atlanta entrepreneur Asa G. Candler realized the business potential of the drink and acquired complete ownership of the Coca-Cola business for $2,300 in 1891. Within four years, Candler's merchandising flair -- including the use of coupons -- helped expand consumption of Coca-Cola to every part of the nation. Until 1899, Coca-Cola was sold only as a fountain drink. Dubious about portable packaging, Candler sold the bottling rights in 1899 for $1. The first two plants were in Chattanooga, Tennessee, and Atlanta, but by 1929, 24 countries had bottling operations. The 1916 introduction of the patented contour bottle made Coca-Cola instantly recognizable from imitators by taste, sight and touch. The contour bottle was granted trademark registration in 1977, an honor awarded few other packages. In 1919, the Candlers sold the Company for $25 million to an investment group, led by Atlanta banker Ernest Woodruff, which soon sold stock to the public at $40 a share. Ernest brought aboard his son Robert to run the
Company in 1923. Robert W. Woodruff's more than six decades of leadership took the business to unrivaled heights of commercial success, making Coca-Cola an institution the world over.
Strong leadership for the Company continued through the years, and in 1981 Roberto C. Goizueta was elected chairman and chief executive officer. He led the Company for 16 years. During his tenure in 1988, an independent worldwide survey found that Coca-Cola was the best known, most admired trademark in the world. And after selling a mere nine drinks a day in 1886, sales of Coca-Cola and other Company products exceeded 1 billion servings per day by 1998. In 2000, Doug Daft was elected the Company's 11th chairman and CEO. In September of that year, The Coca-Cola Company sponsored the Olympic Games in Sydney, Australia, continuing an association that began in 1928. The Company's Olympic involvement continued with the 2002 Games in Salt Lake City, Utah. In 2003, the Company launched a new marketing platform for its flagship brand. The "Coca-Cola ... Real" campaign included new advertising, strong music and digital components, promotions, properties, one-to-one marketing initiatives, and new packaging and graphics.
Mission
Coke Roadmap starts with their mission, which is enduring. It declares their purpose as a company and serves as the standard against which Coke weigh thier actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.
Vision
Coke vision serves as the framework for their Roadmap and guides every aspect of business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Winning Culture
Coke Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.
Live Values
Coke values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future Collaboration: Leverage collective genius Integrity: Be real Accountability: If it is to be, it's up to me Passion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well Focus on the Market
Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view
Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didnt
Be the Brand
Inspire creativity, passion, optimism and fun.
Central Region:
Wada (Mumbai), Ahmadabad, Pune, Nasik, Goa, Bhopal, Khurda (Orissa).
Bottling Plants
In India.
North Region
Centrial Region
South Region
Knpur(UP)
Ptana (Bihar)
Siliguri ( W.B.)
Wada
Pune
Nasik
Bidadi(K aenatak a)
Neman( TN)
Southern Region:
Bidadi(Karnataka),Hospet(Karnataka), Moula Ali(AP), Chittor(AP), Ameenpur(AP), Vijay Wada(AP), Neman(Tamil Nadu).
Spare part (Changeable part) room Coding Air compressor & ammonia compressor room Cooling tower & Heat Exchanger Boiler Quality Control lab
Hindustan Coca-Cola Beverages Company franchise owned bottling Operations in India. Hindustan Coca-Cola Beverages Company owned bottling operations in India . Hindustan Coca-Cola Beverages Company Contract Packaging unit in India Coca-Cola Company operated in India figure.
Systems: formal and informal procedures that support the strategy and structure. The Soft S Style: The culture of the organization, consisting of two components, namely:Organizational Culture: The dominant values and beliefs, and norms, which develop over time and become relatively enduring features of organizational life. Management Style: More a matter of what managers do than what they say, how does a companys Manager spend their time? What are they focusing attention on? Symbolism-the creation and maintenance of meaning is a fundamental responsibility of managers. Staff: The people or human resource management processes used to develop managers, socialization processes, ways of shaping basic values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees. Skills the distinctive competences-what the company does best, ways of expanding or shifting competences. Shared Values: Guiding concepts, fundamental ideas around which a business is built must be simple, usually stated at abstract level, have great meaning inside the organizational even though outsiders may not see or understand them. Effective organization achieves a fit between above mentioned seven elements of the Model. This criterion is origin of the other name of the Model Diagnostic Model for organizational effectiveness.
Skills
Style
Strategy
HOD MARKETING
HOD FINANCE
HOD COMMERCIAL
PRODUCTS:
Coca-Cola Thums-Up Diet Coke Can Sprite Limca Fanta Maaza Minute Maid Nimbu Fresh Minute Maid Pulpy Orange Apple Juice Grape Juice Orange Juice Nestea Lemon Kinley Water Kinley Soda Schweppes Soda Schweppes Tonic Water
Brand Name: Coca-Cola Drink Type: Soft Drink Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in history, as well as
the best-known product in the world. On May 8, 2011, Coca-Cola marks its 125th anniversary. Created in 1886 in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage at Jacob's Pharmacy by mixing Coca-Cola syrup with carbonated water. Coca-Cola was patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world.
Brand Name: Diet Coke Drink Type: Soft Drink Diet Coke: Diet Coke was born in 1982 and quickly became the No. 1 sugar-free drink in dietconscious America. Known as Coca-Cola light in some countries, it's now the No. 3 soft drink in the world. Diet Coke is the drink for people who want no calories, but plenty of taste.
Brand Name: Sprite Drink Type: Soft Drink Sprite: Introduced in 1961, Sprite is the world's leading lemon-lime flavored soft drink. Sprite
is sold in more than 190 countries and ranks as the No. 4 soft drink worldwide, with a strong appeal to young people. Millions of people enjoy Sprite because of its crisp, clean taste that really quenches your thirst. But Sprite also has an honest, straightforward attitude that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst.
Brand Name: Limca Drink Type: Soft Drink Limca: This thirst-quenching beverage features a fresh, light lemon-lime taste and fun-loving
attitude. It's a home-grown, national treasure in India, where it was acquired by The Coca-Cola Company in 1993. Limca continues to build a loyal following among young adults who love the lighthearted way it complements the best moments of their lives.
Brand Name: Fanta Drink Type: Soft Drink Fanta: Available in Europe since the 1940s, Fanta was introduced in the United States in 1960.
Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family. This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with its bright color, bold fruit taste and tingly carbonation. Beginning in 2009, the U.S. markets will see Fanta Regular Orange, Fanta Zero Orange, Fanta Apple and Fanta Grapefruit in 100% natural flavors.
Brand Name: Maaza Drink Type: Juice/Juice Drink Maaza: With the real fruit taste kids love, plus added calcium, Maaza's tagline, "Yaari-Dosti
Taaza Maaza," means "friendship moments with fresh Maaza" in Hindi.
Brand Name: Minute Maid Nimbu Fresh Drink Type: Juice/Juice Drink Minute Maid Nimbu Fresh: The history of Minute Maid brand goes as far back as 1945,
when the Florida Foods Corporation launched the brand Minute Maid. Coca-Cola subsequently acquired the brand in 1960 and today, it is sold in 60 countries worldwide.
Brand Name: Minute Maid Pulpy Orange Drink Type: Juice/Juice Drink Minute Maid Pulpy Orange: The history of the Minute Maid brand goes as far back as
1945 when the Florida Food Corporation developed orange juice powder. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (In a minute).
Kinley water comes with the assurance of safety from The Coca-Cola Company. That is why we introduced Kinley with reverse osmosis along with the latest technology to ensure purity of our product. Because we believe that right to pure, safe drinking water is fundamental.
Part of the Beverage Partners Worldwide (BPW) partner Ship between Nestle and Coca-Cola, One of the largest selling ready-to-drink tea brands sold in over 60 countries. It is launched in India in 2010 in Mumbai Coca-Cola India launched Nestea in Mumbai in 2010.
Market Analysis
The market analysis investigates both the internal and external business environment. It is vital that Coca cola carefully monitor both the internal and external aspects regarding its business as both the internal and external environment and their respective influences will be decisive traits in relation to Cokes success and survival in the soft drink industry.
Financial Forecasts
Financial forecasts are predictions of future events relating strictly to expected costs and revenue costs for future years. There are five major marketing expenditures, which include research costs, product development costs, product costs, promotion costs and distribution costs. Sales force composite is the most logical method in forecasting revenue. This involves estimates from individual salespeople to sell to work out a total for the whole business. Once these costs and revenues are forecasted, management can then decide which combination of marketing mix strategies will deliver the most sales revenue at the lowest cost.
Implementing
Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work. Successful implementation depends on how well the business blends its people, organizational structure and company culture into a cohesive program that supports the marketing plan. For its further success, Coca Cola must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged.
i. Sales Analysis
The sales analysis breaks down total business sales by market segments to identify strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products vary from major retail supermarkets to small corner stores. This gives the its products maximum exposure to customers at their convenience.
Strengths:
1. Coca-Cola has been a complex part of world culture for a very long time. The product's image is loaded with over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 1.7 billions times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment".
2. Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers.
Weaknesses:
1. Weaknesses for any business need to be both minimized and monitored in order to effectively achieve productivity and efficiency in their businesss activities, Coke is no exception. Although domestic business as well as many international markets are thriving (volumes in Latin America were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case sales fell 3% in the second quarter scary because while Japan generates around 5% of worldwide volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of these markets are performing to expectation.
2. Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, 0because drinking of Coca-Cola daily has an effect on your body after few years.
Opportunities:
1. Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The primary concern over the past few years has been to get this name brand to be even better known. Packaging changes have
also affected sales and industry positioning, but in general, the public has tended not to be affected by new products. Coca-Cola's bottling system also allows the company to take advantage of infinite growth opportunities around the world. This strategy gives Coke the opportunity to service a large geographic, diverse area.
Threats:
1. Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but consumers are not necessarily married to it. Possible substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the changing health-consciousness of the market could have a serious affect. Of course, both Coke and Pepsi have already diversified into these markets, allowing them to have further significant market shares and offset any losses incurred due to fluctuations in the market. Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and Coke has produce a very slow moving industry in which management must continuously respond to the changing attitudes and demands of their consumers or face losing market share to the competition. Furthermore, consumers can easily switch to other beverages with little cost or consequence.
RECOMMENDATIONS: DISTRIBUTION DYNAMICSACHIEVABLE TARGETSThe monthly target set for distributor should be practical and achievable. To complete the target distributor uses pre-act technique and black marketing which is very harmful for the company. The target set must have pressure on the distributor but it should be at least achievable. The target set for season and off season. Production plant not shut during the off season and also not less product produces during that time. STABILIZE DISTRIBUTIONThe market is hugely affected if the distributor of the market changes frequently. Distribution change means no supply of stock to the market for at least one week. There was no stock in market for three weeks as the old distributor was allotted a new market and the new distributor could not start its services till 3 weeks. No EVD in the market accounts to very bad reputation of the company in the market. The distributors complained that they have very low profit margins. Salary to staff is their biggest problem. EFFICIENT MIS SHOULD BE APPOINTED DIRECTLY BY THE COMPANYMIS is the person that handles the system that connects the distributor point to the company. MIS must be an efficient worker because all the information flows through the MIS. The MIS at should weak that they could not even check daily mails and there were no updates at distribution point. MIS must be appointed and trained by the company and he must know how to completely use the company software. We should take initiatives to form a strong & long term relationship with the counter We should arrange training programs for selected counter regarding how to sale new products and schemes etc. We can arrange some higher ups visit at least once in quarter to make them engaged in the business and can be called for a dealer meet addressed by the Sr. Managers of the company. These counters should be encouraged to involve company sales Officers as much as possible to give better service We should try to give business thru local parties or events by these outlets.
We should remember special occasions (like anniversary, birthday, new year etc)
of these outlets and give some momentous in these occasions.
CONCLUSION
It was observed that Coca-Cola has been perceived quite positively as it has been projected. People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a product is launched, avoid Coke drinkers choose this soda over any other competitor simply because it's a Coca-Cola product and they trust it. Although Coke has been into controversies, people still prefer to stay loyal to the Brand with Coca-Cola being termed as a more popular brand than Pepsi. Coca-Cola products would appear, on the shelf, to have the most expensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the extra costs of promotions, for which no name brands do without. When people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap. In supermarkets and convenience stores Coca-Cola has their own fridge which contains only their products. There is little personal selling, but that is made up for in public relations and corporate image. Coca-Cola sponsors a lot of events including sports and recreational activities.
So
REFERENCES MANAGEMENT BOOKS Personnel Manual of various Departments. Human Resource and Personnel Management by K. Aswathappa. TATA McGraw HILL, Publications. Business Research Methods by Donald R Cooper & Pamela S Schindler. TATA McGraw HILL, Publications. Production & Operations Management by K. Aswathappa & K. Sridhar Bhatt. Himalaya Publishing House.