Summer Internship Project on Coca-Cola

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A PROJECT REPORT
ON
“STUDY ON ROLE OF MARKETING CAMPAIGNS IN SALES
PROMOTION OF COCA-COLA BEVERAGES”
FOR
Hindustan Coca-Cola Beverages Pvt. Ltd.
Submitted to
Marwadi Education Foundation’s Group of Institutions
In partial fulfillment of the requirement of the award for the degree of
Master of Business Administration
Under
Gujarat Technological University
Under the guidance of
Faculty Guide: Company Guide:
Prof. Amar Gandhi Mr. Sagar Trivedi
Submitted by
PRASHANT T. AGHARA
Enrolment No.:128270592002
MBA Semester III
Marwadi Education Foundation‟s Group of Institutions
MBA Program
Affiliated to Gujarat Technological University
Ahmedabad
July 2013
SUMMER INTERNSHIP PROJECT [SIP]-2013

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DECLARATION
I Prashant T. Aghara hereby declare that the report for „Summer Training
Project‟ entitled “STUDY ON ROLE OF MARKETING CAMPAIGNS IN
SALES PROMOTION OF COCA-COLA BEVERAGES” Is a result of my own
work and my indebtedness to other work publications, references, if any, have
been duly acknowledged.
I am presenting an authentic report of my work to Marwadi Education
Foundation‟s Group of Institutions, Rajkot carried out at Hindustan Coca-Cola
Beverages Private Limited, Rajkot for the partial fulfillment of the requirement
of Master of Business Administration degree program of Gujarat
Technological University, Ahmedabad.
Place: Rajkot Student Signature
Date: PRASHANT T. AGHARA

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PREFACE
It is said that “Knowledge is power” but “applied knowledge is power” seems
to be a correct statement.
In this modern world, theoretical study has no value without its practical
application; practical knowledge is more powerful than the knowledge of
books. In today‟s business world, practical knowledge plays an important role;
course involves industrial training, which provides practical knowledge and
experience to the students in the field of management.
Keeping the same in mind Marwadi Education Foundation’s Group of
Institutions has introduced practical outlook to well known organizations and
to make the students familiar with the practical managerial functions, the
institution arranged Summer Internship Program at Hindustan Coca-Coca
Beverage Private Limited (HCCBPL), Rajkot (Guj).
Research is a feedback that any organization sought for the purpose of
effective policies and decision making. It is the systematic problem analysis,
model building & fact finding for the purpose of important decision-making &
control in making of goods and services. Summer Project is a part of our
curriculum so that we get exposed to the practical side of our theoretical
know-how. This is basically designed to the real life situation. In this training
program, the students use their academic knowledge practically which
polishes the decision making abilities of MBA students. For developing
healthy managerial and administrative skills of potential managers .It is
necessary that theoretical knowledge must be supplemented with exposure to
real life business environment. It is a practical training that the measuring
itself is realized.

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ACKNOWLEDGEMENT
This is a great pleasure to submit this report. I would like to express my
profound gratitude to all those who have been instrumental in the preparation
of this “Summer Internship Project Report”.
First of all, I wish to place on records, my deep gratitude to our Placement
Head Mr. K.S.R. Swami and other staff of this department, for giving me a
chance to sit in selection interview of my SIP. I am also very much thankful to
Mr Suresh Ahluwalia(Sales HR, HCCBPL) and Ujjwal sir for selecting me
as an intern and giving me a chance to prove myself. I am highly obliged to
my project guide Prof. Amar Gandhi for giving me a valuable and timely
guidance throughout my SIP and I also like to thank our dean Mr. S.C. Reddy
for granting me a permission to join my training during lectures.
I will always be much thankful to my company guide Mr. Sagar Trivedi for his
major support, co-operation and attentiveness during my training. I also would
like to thank all Marketing and Sales staff of HCCBPL at rajkot, without whom
my training might not have been completed and I am thankful to all my friends
with whom I have been working, for all kind of help in completion of my
“Summer Internship Project”.
My gratitude will not be completed without thanking my parents and all my
well-wishers for being a source of motivation and their suggestions towards
my betterment.

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INDEX
Sr. No. Particulars Page No.
PART-I General Information
1. Industry Overview 8
1.1: Beverage Industry in India 10
1.2: Growth And Performance of Industry 12
1.3: Major Market Players in Industry 15
2. Company Overview 16
2.1: History: Coca-Cola- International 16
2.2: History: Coca-Cola - INDIA 26
2.3: Coca-Cola System Worldwide and in India 28
2.4: About Hindustan Coca-Cola Beverages Pvt. Ltd. 30
2.5: Hierarchy of the Organization 33
2.6: Growth and Development 34
2.7: Performance Highlights (Jan 2013) 36
2.8: Product Profile 38
2.9: Departmental Overview 40
2.10: SWOT Analysis 48
2.11: About Competitors 50
PART-II Research Work
3. Introduction of the Study 52
3.1: Background of The Study 52
3.2: Statements of The Problems 52
3.3: Objectives of the Study 53
4. Research Methodology 54
4.1: Introduction 54
4.2: Research Design 54
4.3: Scope of The Study 55
4.4: Data Collection 55
4.5: Instrument for Data Collection 56
5. About Marketing Campaigns 57
5.1: Campaign 1: “Shop in Shop Activity” 59
5.1.6: Data Analysis and Interpretation of S-I-S 63
5.1.7: Result and Findings 65
5.2: Campaign 2: “Horizontal Expansion” 67
5.2.5: Result and Findings 73
6. Suggestions and Recommendations 76
7. Limitations of The Study 77

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8. Conclusion 78
10. Bibliography 79
11. Annexure 80
CHART INDEX
Chart
No.
Chart Name Page No.
1.
Avg. bottle sold per day before and after S-I-S Activity
at each outlet.
65
2.
Total avg. selling per day before, during and after
S-I-S Activity.
66
3.
Revenue generated from the 1st
order for particular
distributor
74
TABLE INDEX
Table no. Table Name Page No.
1. Worksheet of Shop-In-Shop Activity 63

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PART-I: General Information
“Study on Role of Marketing Campaigns in
Sales Promotion of Coca-Cola Beverages”

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CHAPTER: 1- INDUSTRY OVERVIEW
FMCG Industry
Fast Moving Consumer Goods (FMCG) goods are all consumable items
(other than groceries/pulses) that one needs to buy at regular intervals. These
are items which are used daily, and so have a quick rate of consumption, and
a high return. FMCG can broadly be categorized into three segments which
are:
1. Household items as soaps, detergents, household accessories, etc,
2. Personal care items as shampoos, toothpaste, shaving products, etc
and finally
3. Food and Beverages as snacks, processed foods, tea, coffee, edible
oils, soft drinks etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever
Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola,
Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc.
Overview:
The burgeoning middle class Indian population, as well as the rural sector,
presents a huge potential for this sector. The FMCG sector in India is at
present, the fourth largest sector with a total market size in excess of USD 13
billion as of 2012. This sector is expected to grow to a USD 33 billion industry
by 2015 and to a whooping USD 100 billion by the year 2025.
This sector is characterized by strong MNC presence and a well established
distribution network. In India the easy availability of raw materials as well as
cheap labor makes it an ideal destination for this sector. There is also intense
competition between the organized and unorganized segments and the fight
to keep operational costs low.

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A look at some factors that will drive growth in this sector:
 Increasing rate of urbanization, expected to see major growth in
coming years.
 Rise in disposable incomes, resulting in premium brands having faster
growth and deeper penetration.
 Innovative and stronger channels of distribution to the rural segment,
leading to deeper penetration into this segment.
 Increase in rural non-agricultural income and benefits from government
welfare programs.
 Investment in stock markets of FMCG companies, which are expected
to grow constantly.
Some of the challenges this sector is likely to face are:
 Increasing rate of inflation, which is likely to lead to higher cost of raw
materials.
 The standardization of packaging norms that is likely to be
implemented by the Government by 2013 is expected to increase cost
of beverages, cereals, edible oil, detergent, flour, salt, aerated drinks
and mineral water.
 Steadily rising fuel costs, leading to increased distribution costs.
 The present slow-down in the economy may lower demand of FMCG
products, particularly in the premium sector, leading to reduced
volumes.
 The declining value of rupee against other currencies may reduce
margins of many companies, as Marico, Godrej Consumer Products,
Colgate, Dabur, etc who import raw materials.

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In conclusion:
This sector will continue to see growth as it depends on an ever-increasing
internal market for consumption, and demand for these goods remains more
or less constant, irrespective of recession or inflation. Hence this sector will
grow, though it may not be a smooth growth path, due to the present world-
wide economic slowdown, rising inflation and fall of the rupee. This sector will
see good growth in the long run and hiring will continue to remain robust.
1.1: 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.
The beverage industry is vast and there various ways of segmenting it, so as
to cater the right product to the right person. The different ways of segmenting
it are as follows:
 Alcoholic, non-alcoholic and sports beverages
 Natural and Synthetic beverages
BEVERAGES
Alcoholic Non-Alcoholic
Carbonated Non-Carbonated
Cola Non-Cola Non-Cola

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 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior
citizens
 Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be
observed that consumers perceive beverages in two different ways i.e.
beverages are a luxury and that beverages have to be consumed
occasionally. These two perceptions are the biggest challenges faced by the
beverage industry. In order to leverage the beverage industry, it is important
to address this issue so as to encourage regular consumption as well as and
to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the
beverage industry in India are:
 The quality and the consistency of beverages needs to be enhanced so
that consumers are satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong
and safe feeling that the consumers have while consuming the
beverages.
 Consumer education is a must to bring out benefits of beverage
consumption whether in terms of health, taste, relaxation, stimulation,
refreshment, well-being or prestige relevant to the category.
 Communication should be relevant and trendy so that consumers are
able to find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider
spread of distribution. It is important to look at the entire beverage market, as
a big opportunity, for brand and sales growth in turn to add up to the overall
growth of the food and beverage industry in the economy.

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1.2: Growth and Performance of Beverage Industry
“Indian beverage industry's double-digit growth will continue, says IBA”
April 13, 2013
The Indian Beverage Association (IBA) expects the country's beverage
industry to continue to grow in double digits in 2013, despite the recessionary
trends being shown by most economies the world over, including the Indian
economy.
Speaking at an IBA-organised seminar titled 'Agenda for Growth: Indian
Beverage Industry – Leveraging International Practices' in Delhi, experts from
the beverage industry stated that it could witness a revolution, fuelled by
changing lifestyles, a growing middle-class, rapid urbanisation and increased
disposable incomes.
Participants in the seminar included Rakesh Kacker, secretary, Ministry of
Food Processing Industries, Government of India; K Chandramouli, chairman,
Food Safety and Standards Authority of India (FSSAI); Geoff Parker,
president, International Council of Beverages Associations, and Patricia
Vaughan, senior vice-president, American Beverage Association.
The non-alcoholic ready-to-drink beverage segment has been growing at a
compound annual growth rate (CAGR) of 13 per cent since 2009, and is one
of the segments that have defied the slowing economic growth.
Arvind Varma, secretary general, IBA, said, "The non-alcoholic ready-to-drink
beverage industry is one of the largest investors in the country and has
contributed significantly to the growth of allied industries. This industry is
witnessing robust growth, driven by a combination of factors such as
increased investments and innovations.”
“However, the government needs to take a long-term view on the industry
while formulating policies or else there is a chance this industry‟s growth may
get derailed,” he stated.
“IBA aims to act as a catalyst to enable the non-alcoholic beverage industry to
play an increasingly significant role in the growth of the economy, by providing

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employment opportunities and driving income growth and therefore has raised
its expectations with the government authorities,” Varma added.
IBA's suggestions
At the deliberations in the seminar, speakers observed that the macro-
indicators and the demographic dividends favour robust growth for the
beverage industry in India.
“With an enabling policy regime, which includes a more rational tax structure,
frequent consultations with the industry on food regulations, giving the
industry its due recognition as manufacturers of high quality, healthy and
nutritious products as well as life-critical products like water, will further help
the industry realize its potential,” IBA stated.
As an industry that has strong backward linkages with agriculture, its growth
will also benefit millions of farmers across the country.
GST
One of the key areas where the beverage industry expects central and state
government intervention is goods and service tax (GST) and direct tax code
(DTC).
The beverage industry has learnt that a single rate for both Central GST and
state GST, which was proposed earlier, is reportedly being talked about as
three different rates. This defies economic logic and is indicative of difficulty in
moving forward the proposal of a Constitutional amendment in Parliament.
IBA also suggested that the beverage industry be made a key stakeholder in
the introduction of GST, and should be a natural partner in the process of
consultation while formulating the plan and roll-out of GST. The extent of
involvement of industry currently in the consultation process needs to be
scaled up and made more intense and frequent.
VAT
The value-added tax (VAT) rate of six per cent is applicable to fruit juice and
fruit juice-based drinks. Despite the states coming to an understanding that

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VAT would be charged at the rate of six per cent on fruit juice and fruit juice-
based drinks, some states have increased the VAT substantially. The move to
increase VAT on fruit juice and fruit juice-based drinks will subvert the growth
of the juice industry as also the development of the fruit and vegetable
processing industry.
The soft drink industry is already reeling under margin pressure due to the
high rate of taxes it is paying to the Central and state governments, but some
states have also increased the VAT on carbonated soft drinks.
This increase in taxes will, therefore, have to be passed on to the consumer
leading to an increase in the price of the soft drinks, which will restrict
purchase of soft drinks by the general mass.
This, in turn, will have an adverse effect on the beverage industry and
industries that depend on the beverage industry. An increase in price also
favors spurious manufacturers to sell their products on the basis of cost
arbitrage.
R&D
Industry players also felt that their prowess in research and development
would help them move beyond global brands and develop local, indigenous
product to suit regional palates, thereby driving further growth in the market.
These innovations are meant to address the low per-capita consumption of
packaged beverages and will create both a direct and an indirect impact.
Regulatory aspect
The industry also expects that the food safety authorities remove roadblocks
and provide much faster clearances and approvals on ingredients and new
products, without compromising the safety and quality of new products.
This is most relevant in case of proprietary foods, where inordinate delays
result in food and beverage companies having to wait for many months before
launching new products.

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IBA also suggested that CODEX should be made a reference point for
national food control agencies. The international food standards, guidelines
and codes of practice laid down by CODEX contribute to the safety, quality
and fairness of international food trade.
Referring to CODEX will help the Indian beverage industry contribute a higher
share to the global food and beverage trade, which is estimated at $200 billion
dollars.
1.3: Major Market Players in Industry
Followings are major players in beverage industry:
1. The Coca-Cola Company
2. PepsiCo
3. Nestlé
4. Suntory Holdings (Suntory)
5. Dr Pepper Snapple (DPS)
6. Red Bull
7. Groupe Danone (Danone)
8. Kirin Holdings (Kirin)
9. Asahi Breweries (Asahi)

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CHAPTER: 2-COMPANY OVERVIEW
2.1: History: Coca-Cola Company- INTERNATIONAL
Coca-Cola Enterprises, established in 1886, is a young company by the
standards of the Coca-Cola system. Yet each of its franchises has a strong
heritage in the traditions of Coca-Cola that is the foundation for this Company.
The Coca-Cola Company traces it‟s beginning to 1886, when an Atlanta
pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale
in fountain drinks. However the bottling business began in 1899 when two
Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead,
secured the exclusive rights to bottle and sell Coca-Cola for most of the
United States from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as independent, local
businesses until the early 1980s when bottling franchises began to
consolidate. In 1986, The Coca-Cola Company merged some of its company-
owned operations with two large ownership groups that were for sale, the
John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to
form Coca-Cola Enterprises Inc. The Company offered its stock to the public
on November 21, 1986, at a split-adjusted price of $5.50 a share. On an
annual basis, total unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the
Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger

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Company, again helping accelerate bottler consolidation. As part of the
merger, the senior management team of Johnston assumed responsibility for
managing the Company, and began a dramatic, successful restructuring in
1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5
billion.
The Coca-Cola Company is the world‟s largest beverage company. They
operate in more than 200 countries & markets more than 3500 beverage
products. Headquartered at Atlanta, Georgia, they have approximately
146,200 employees all over the world. It is often referred to simply as Coke or
(in European and American countries) as Cola or Pop.
2.1.1- Heritage timeline:
1886-1892:
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 unveiled.
Like many people who change history, John Pemberton, an Atlanta
pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a
fragrant, caramel-colored liquid and, when it was done, he carried it a few
doors down to Jacobs' Pharmacy. Here, the mixture was combined with
carbonated 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, Pemberton sold just 9 glasses of Coca-Cola a
day.
A century later, The Coca-Cola Company has produced more than 10 billion
gallons of syrup. Unfortunately for Pemberton, he died in 1888 without
realizing the success of the beverage he had created.

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Over the course of three years, 1888-1891, Atlanta businessman Asa Griggs
Candler secured rights to the business for a total of about $2,300. Candler
would become the Company's first president, and the first to bring real vision
to the business and the brand.
1893-1904:
Asa G. Candler, a natural born salesman, transformed Coca-Cola from an
invention into a business. He knew there were thirsty people out there, and
Candler found brilliant and innovative ways to introduce them to this exciting
new refreshment. He gave away coupons for complimentary first tastes of
Coca-Cola, and outfitted distributing pharmacists with clocks, urns, calendars
and apothecary scales bearing the Coca-Cola brand. People saw Coca-Cola
everywhere, and the aggressive promotion worked. By 1895, Candler had
built syrup plants in Chicago, Dallas and Los Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new
ways. In 1894, a Mississippi businessman named Joseph Biedenharn
became the first to put Coca-Cola in bottles. He sent 12 of them to Candler,
who responded without enthusiasm. Despite being a brilliant and innovative
businessman, he didn't realize then that the future of Coca-Cola would be with
portable, bottled beverages customers could take anywhere. He still didn't
realize it five years later, when, in 1899, two Chattanooga lawyers, Benjamin
F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler
to bottle and sell the beverage -- for the sum of only one dollar.
1905-1918:
Imitation may be the sincerest form of flattery, but The Coca-Cola Company
was none too pleased about the proliferation of copycat beverages taking
advantage of its success. This was a great product, and a great brand. Both
needed to be protected. Advertising focused on the authenticity of Coca-Cola,
urging consumers to "Demand the genuine" and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to assure
people they were actually getting a real Coca-Cola. The Root Glass Company
of Terre Haute, Indiana, won a contest to design a bottle that could be

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recognized in the dark. In 1916, they began manufacturing the famous
contour bottle. The contour bottle, which remains the signature shape of
Coca-Cola today, was chosen for its attractive appearance, original design
and the fact that, even in the dark, you could identify the genuine article.
As the country roared into the new century, The Coca-Cola Company grew
rapidly, moving into Canada, Panama, Cuba, Puerto Rico, France, and other
countries and U.S. territories. In 1900, there were two bottlers of Coca-Cola;
by 1920, there would be about 1,000.
1919-1940:
Perhaps no person had more impact on The Coca-Cola Company than
Robert Woodruff. In 1923, four years after his father Ernest purchased the
Company from Asa Candler, Woodruff became the Company president. While
Candler had introduced the U.S. to Coca-Cola, Woodruff would spend more
than 60 years as Company leader introducing the beverage to the world
beyond.
Woodruff was a marketing genius who saw opportunities for expansion
everywhere. He led the expansion of Coca-Cola overseas and in 1928
introduced Coca-Cola to the Olympic Games for the first time when Coca-
Cola 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.
1941-1959:
In 1941, America entered World War II. Thousands of men and women were
sent overseas. The country, and Coca-Cola, rallied behind them. Woodruff
ordered that "every man in uniform gets a bottle of Coca-Cola for 5 cents,
wherever he is, and whatever it costs the Company." In 1943, General Dwight
D. Eisenhower sent an urgent cablegram to Coca-Cola, requesting shipment
of materials for 10 bottling plants. During the war, many people enjoyed their

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first taste of the beverage, and when peace finally came, the foundations were
laid for Coca-Cola to do business overseas.
Woodruff‟s vision that Coca-Cola be placed within "arm's reach of desire,"
was coming true -- from the mid-1940s until 1960, the number of countries
with bottling operations nearly doubled. Post-war America was alive with
optimism and prosperity. Coca-Cola was part of a fun, carefree American
lifestyle, and the imagery of its advertising -- happy couples at the drive-in,
carefree moms driving big yellow convertibles -- reflected the spirit of the
times.
1960-1981:
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 places: Cambodia, Montserrat,
Paraguay, Macau, Turkey and more.
Advertising for Coca-Cola, always an important and exciting part of its
business, really came into its own in the 1970s, and reflected a brand
connected with fun, friends and good times. The international appeal of Coca-
Cola was embodied by a 1971 commercial, where a group of young people
from all over the world gathered on a hilltop in Italy to sing "I'd Like to Buy the
World a Coke."
In 1978, The Coca-Cola Company was selected as the only Company allowed
to sell packaged cold drinks in the People's Republic of China.

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1982-1989:
The 1980s -- the era of legwarmers, headbands and the fitness craze, and a
time of much change and innovation at The Coca-Cola Company. In 1981,
Roberto C. Goizueta became chairman of The Board of Directors and CEO of
The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961,
completely overhauled the Company with a strategy he called "intelligent risk
taking."
Among his bold moves was organizing the numerous U.S. bottling operations
into a new public company, Coca-Cola Enterprises Inc. He also led the
introduction of diet Coke®, the very first extension of the Coca-Cola
trademark; within two years, it had become the top low-calorie drink in the
world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a new taste for
Coca-Cola, the first change in formulation in 99 years. In taste tests, people
loved the new formula, commonly called “new Coke.” In the real world, they
had a deep emotional attachment to the original, and they begged and
pleaded to get it back. Critics called it the biggest marketing blunder ever. But
the Company listened, and the original formula was returned to the market as
Coca-Cola classic®, and the product began to increase its lead over the
competition -- a lead that continues to this day.
1990-1999:
The 1990s were a time of continued growth for The Coca-Cola Company. The
Company's long association with sports was strengthened during this decade,
with ongoing support of the Olympic Games, FIFA World Cup™ football
(soccer), Rugby World Cup and the National Basketball Association. Coca-
Cola classic became the Official Soft Drink of NASCAR racing, connecting the
brand with one of the world's fastest growing and most popular spectator
sports.
And 1993 saw the introduction of the popular "Always Coca-Cola" advertising
campaign, and the world met the lovable Coca-Cola Polar Bear for the first

24
time. New markets opened up as Coca-Cola products were sold in East
Germany in 1990 and returned to India in 1993.
New beverages joined the Company's line-up, including 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 India, Barq's root beer in the U.S., Inca Kola in Peru,
and Cadbury Schweppes' beverage brands in more than 120 countries
around the world. By 1997, the Company already sold 1 billion servings of its
products every day, yet knew that opportunity for growth was still around
every corner.
2000-Now:
In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta
pharmacy. Now well into its second century, the Company's goal is to provide
magic every time someone drinks one of its more than 500 brands. Coca-Cola
has fans from Boston to Budapest to Bahrain, drinking brands such as
Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you
can still find Coca-Cola.
Coca-Cola is committed to local markets, paying attention to what people from
different cultures and backgrounds like to drink, and where and how they want
to drink it. With its bottling partners, the Company reaches out to the local
communities it serves, believing that Coca-Cola exists to benefit and refresh
everyone it touches.
From the early beginnings when just nine drinks a day were served, Coca-
Cola has grown to the world‟s most ubiquitous brand, with more than 1.7
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.

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2.1.2: Mission, Vision and Values (Global)
The world is changing all around us. To continue to thrive as a business over
the next ten years and beyond, we must look ahead, understand the trends
and forces that will shape our business in the future and move swiftly to
prepare for what's to come. We must get ready for tomorrow today. That's
what our 2020 Vision is all about. It creates a long-term destination for our
business and provides us with a "Road map" for winning together with our
bottling partners.
Our Mission:
Our Road map starts with our mission, which is enduring. It declares our
purpose as a Company and serves as the standard against which we weigh
our actions and decisions.
 To refresh the world.
 To inspire moments of optimism and happiness.
 To create value and make a difference.
Our Vision:
Our vision serves as the framework for
our Road map and guides every aspect of our
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

26
 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 share owners while being mindful
of our overall responsibilities
 Productivity: Be a highly effective, lean and fast-moving organization
Our Winning Culture:
Our Winning Culture defines the attitudes and behaviors that will be required
of us to make our 2020 Vision a reality.
Live Our Values:
Our 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

27
 Focus on execution in the marketplace every day
 Be insatiably curious
Work Smart:
 Act with urgency
 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently
Act like Owners:
 Be accountable for our actions and in actions
 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 didn‟t
Be the Brand:
 Inspire creativity, passion, optimism and fun

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2.2: History: Coca-Cola - INDIA
The Coca-Cola Company re-entered India through its wholly owned
subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in
1993 after the opening up of the Indian economy to foreign investments in
1991. Since then its operations have grown rapidly through a model that
supports bottling operations, both company owned as well as locally owned
and includes over 7,000 Indian distributors and more than 2.2 million retailers.
Today, our brands are the leading brands in most beverage segments. The
Coca-Cola Company's brands in India include Coca-Cola, Fanta Orange,
Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute Maid Pulpy Orange,
Minute Maid Nimbu Fresh and the Georgia Gold range of teas and coffees
and Vitingo (a beverage fortified with micro-nutrients).
In India, the Coca-Cola system comprises of a wholly owned subsidiary of
The Coca-Cola Company namely Coca-Cola India Pvt Ltd which
manufactures and sells concentrate and beverage bases and powdered
beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-
Cola Beverages Pvt. Ltd; thirteen authorized bottling partners of The Coca-
Cola Company, who are authorized to prepare, package, sell and distribute
beverages under certain specified trademarks of The Coca-Cola Company;
and an extensive distribution system comprising of our customers, distributors
and retailers. Coca-Cola India Private Limited sells concentrate and beverage
bases to authorized bottlers who are authorized to use these to produce our
portfolio of beverages. These authorized bottlers independently develop local
markets and distribute beverages to grocers, small retailers, supermarkets,
restaurants and numerous other businesses. In turn, these customers make
our beverages available to consumers across India.
The Coca-Cola system in India has already invested USD 2 Billion till 2011,
since its re-entry into India. The company will be investing another USD 5
Billion till the year 2020. The Coca-Cola system in India directly employs over
25,000 people including those on contract. The system has created indirect

29
employment for more than 1,50,000 people in related industries through its
vast procurement, supply and distribution system. We strive to ensure that our
work environment is safe and inclusive and that there are plentiful
opportunities for our people in India and across the world.
The beverage industry is a major driver of economic growth. A National
Council of Applied Economic Research (NCAER) study on the carbonated
soft-drink industry indicates that this industry has an output multiplier effect of
2.1. This means that if one unit of output of beverage is increased, the direct
and indirect effect on the economy will be twice of that. In terms of
employment, the NCAER study notes that "an extra production of 1000 cases
generates an extra employment of 410 man days."
As a Company, our products are an integral part of the micro economy
particularly in small towns and villages, contributing to creation of jobs and
growth in GDP. Coca-Cola in India is amongst the largest domestic buyers of
certain agricultural products.
As an industry which has strong backward and forward linkages, our
operations catalysis growth in demand for products like glass, plastic,
refrigeration, transportation, and Industrial and agricultural products. Our
operations also lead to incremental growth for enterprises engaged in post-
production activities like merchandising, marketing and sales. In addition, we
share best practices and technological advancements with our suppliers,
vendors and allied industries which often lead to improvement in the overall
standards of quality across industries.
The Coca-Cola Company has always placed high value on good citizenship.
Our basic proposition entails that our Company's business should refresh the
market; enrich the workplace; protect and preserve the environment; and
strengthen the community. We leverage our unique strengths to actively
support and respond to local needs -- be it the need for education, health,
water or nutrition. We have used our distribution network for disaster relief,

30
our marketing prowess to raise awareness on issues such as PET recycling,
and our presence in communities to improve access to education and potable
water. The Coca-Cola India Foundation is now taking forward in the
community at large, projects and programs of social relevance to carry
forward the message of inclusive growth and development.
2.3: Coca-Cola System Worldwide and in India
At the core of our business in India, as in the rest of the world is our
production and distribution network, which we call the “Coca-Cola system”.
Globally, the Coca-Cola system includes our Company and more than 300
bottling partners. The Coca-Cola Company manufactures and sells
concentrate and beverage bases. Our authorized bottlers combine our
concentrate or beverage bases as the case may be with sweetener
(depending on the product), water or carbonated water to produce finished
beverages. These finished beverages are packaged in authorized containers
bearing our trademarks -- such as cans, refillable glass bottles, non-refillable
PET bottles and tetra packs -- and are then sold to wholesalers or retailers. In
India, additionally, the Company also sells certain powdered beverage mixes
such as Vitingo.
Our beverages reach our ultimate consumers through our customers: the
grocers, small retailers, hypermarkets, restaurants, convenience stores and
millions of other businesses that are the final points of distribution in the Coca-
Cola system. What truly defines the Coca-Cola system, and indeed what
makes it unique among businesses, is our ability to create value for our
customers and consumers.
In India, the Coca-Cola system comprises of a wholly owned subsidiary of
The Coca-Cola Company namely Coca-Cola India Pvt Ltd which
manufactures and sells concentrate and beverage bases and powdered
beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-
Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-
Cola Company, who are authorized to prepare, package, sell and distribute
beverages under certain specified trademarks of The Coca-Cola Company;

31
and an extensive distribution system comprising of our customers, distributors
and retailers. Coca-Cola India Private Limited sells concentrate and beverage
bases to authorized bottlers who are authorized to use these to produce our
portfolio of beverages. These authorized bottlers independently develop local
markets and distribute beverages to grocers, small retailers, supermarkets,
restaurants and numerous other businesses. In turn, these customers make
our beverages available to consumers across India.

32
2.4: About “Hindustan Coca-Cola Beverages Private Limited”
Overview:
HCCBPL is the largest bottling partner of The Coca-Cola Company
(www.coca-colacompany.com) in India. It is a part of The Coca-Cola
Company‟s Bottling Investments Group (BIG) and responsible for the
manufacture, package, sale and distribution of beverages under the
trademarks of The Coca-Cola Company.
Coca-Cola India Pvt. Ltd. - (www.coca-colaindia.com) is a Wholly-Owned
Subsidiary of The Coca-Cola Company, USA. While building the consumer
franchise for The Coca-Cola Company trademarks, it also leads world class
governance systems for the operations of all partners in bottling, suppliers,
distributors and other stakeholders.

33
Hindustan Coca-Cola Beverages Pvt. Ltd. - As part of the Bottling
Investments Group of The Coca-Cola Company, HCCBPL has 24 bottling
plants at strategic locations in various states spread across India. We cover
approximately 65% of bottling operations for the Coca-Cola System in India.
HCCBPL has an extensive distribution system spanning more than a million
outlets operating with world class execution standards. The focus of the
system is to develop strong customer value while delivering preferred choice
of refreshment at an arm's length of desire to the consumer.
Over the years, Hindustan Coca-Cola Beverages Pvt. Ltd. has focused on
building world class operations based on principles of safety, profitability and
solid governance to claim sustained growth. As part of our journey of moving
towards being a World Class Company, we have strengthened our
organization in terms of Supply Chain, Infrastructure, Market Execution,
People, Processes, Compliance, Governance and Route-to-Market. This
approach has enabled us to build our portfolio through launching new packs
and brands, coupled with a competitive pricing strategy based on a balance of
value pricing and eliminating waste.

34
2.4.1: Vision, Mission and Values of HCCBPL:

35
2.5: Hierarchy of the Organization
CHIEF EXECUTIVE OFFICER
RVP
AGM/AOD
FINANCE
MANAGER
RTM
MANAGER
MARKETING
MANAGER
SALES
MANAGER
PRODUCTION
HEAD
HR HEAD
ACCOUNTS MARKETING
EXECUTIVES
RTM
EXECUTIVE
SALES TEAM
LEADER
MARKET
DEVELOPER
PURCHASE
AREA SALES
MANAGER
R&D QUALITY

36
2.6: Growth and Development:
First Quarter 2013 Highlights:
 Solid 4% first quarter global volume growth. Volume growth of 3%
for Coca-Cola Americas and 5% for Coca-Cola International.
 Global sparkling beverage volume grew 3%, led by brand Coca-Cola,
up 3%, and global still beverage volume grew 6% in the first quarter.
 First quarter reported net revenues declined 1%. Excluding the impact
of currency and structural changes, net revenues grew 2% despite two
fewer selling days in the quarter.
 First quarter reported operating income declined 4% and comparable
currency neutral operating income grew 5%, in line with our
expectations and reflecting the impact of two fewer selling days in the
quarter.
 First quarter reported EPS was $0.39, down 13%, and comparable
EPS was $0.46, up 5%, including a currency headwind of
approximately 4%.
 The Company announces implementation of a new partnership model
in the United States.
ATLANTA, April 16, 2013 – The Coca-Cola Company today reported first
quarter 2013 results. Muhtar Kent, Chairman and Chief Executive Officer
of The Coca-Cola Company said, "I am pleased with our first quarter
performance results, having once again delivered solid growth against the
backdrop of a still uncertain global economy. Guided by our 2020 Vision, our
roadmap for winning together with our global system bottling partners, we
enter 2013 and the fourth year of our journey to 2020 focused and on track to
reach our goals.
"Together, we are working to unlock value, to execute with excellence and to
keep winning volume and value share. We proudly serve more than
500 brands through 23 million retail customer outlets each week, providing

37
consumers a wide array of choices in package sizes, sweeteners and
beverages – including more than 800 low- and no-calorie options. Our focus
each and every day is to refresh the world, inspire moments of optimism and
happiness, create value and make a meaningful difference. I am proud of all
we are achieving alongside our customers, bottlers and other partners. Even
so, we remain constructively discontent as we seek to make the most of the
vast growth opportunities we continue to see around the world."
Fig: Chart showing Revenue Growth of Coca-Cola

38
2.7: Performance Highlights (Jan 2013):
The Coca-Cola Company reported worldwide volume growth of 4% for the
first quarter, with 3% growth in Coca-Cola Americas and 5% growth in Coca-
Cola International. The Company reported solid volume growth in key
developed markets, including Germany (+3%), North America (+1%) and
Japan (+1%). Europe volume was even for the first quarter and a sequential
improvement from fourth quarter 2012, despite ongoing uncertain
macroeconomic conditions and unseasonably cold weather. The Company
also delivered strong volume growth during the quarter in key emerging
markets, including Thailand (+18%), India (+8%), Russia (+8%), Mexico
(+3%) and Brazil (+3%). Our China business delivered 1% volume growth in
the quarter, a sequential improvement from fourth quarter 2012, despite the
economic slowdown and poor weather in the quarter. Strong volume growth
continued in countries with per capita consumption of Company brands less
than 150 eight-ounce servings per year, with volume up 7% in the quarter
overall, reflecting the strength of our geographic portfolio, with our products
sold in more than 200 countries worldwide.
We grew value share in nonalcoholic ready-to-drink (NARTD) beverages for
the 23rd
consecutive quarter and we maintained global volume share in the
quarter. Importantly, value share growth once again outperformed volume
share. Further, our immediate consumption (IC) volume grew 3% globally in
the first quarter, with sparkling IC volume up 2% and still IC volume up 3%,
driven by focused in-store activation efforts and continued cold-drink
equipment expansion, building on the 1.3 million units placed in 2012.
Worldwide sparkling beverage volume grew 3% for the quarter. We grew
volume and value share in global core sparkling beverages in the quarter, led
once again by brand Coca-Cola, as we activated our "Crazy for Good"
marketing campaign in many markets around the world and continued to offer
consumers relevant price and package size choices as well as promotions
centered on "Coke with Meals". Worldwide brand Coca-Cola volume grew
3% for the quarter, with growth across diverse markets, including Thailand
(+38%), India (+30%), Russia (+15%), China (+6%), Germany (+4%), Japan

39
(+2%) and Brazil (+2%). In addition, Fanta volume grew 6%
and Sprite volume grew 5% for the quarter, reflecting a balanced portfolio
approach to growth across the core sparkling beverage category. Growth
was driven by innovation in sweeteners and packaging and activation of
global marketing campaigns in locally relevant ways such as the Fanta "Play"
campaign and the Sprite "Uncontainable Game" NBA partnership.
Worldwide still beverage volume grew 6% in the quarter, with volume growth
across most beverage categories, including ready-to-drink tea, juices and
juice drinks, packaged water, energy drinks and sports drinks. Excluding the
impact of acquired volume, primarily from the Aujan partnership in the Eurasia
and Africa Group, still beverage volume grew 4% in the quarter. We grew
global volume and value share in still beverages and realized volume and
value share gains in juices and juice drinks, ready-to-drink tea, and packaged
water.
Ready-to-drink tea volume grew double digits in the quarter, with continued
strong performance of key brands such as Gold Peak and Honest Tea in
North America, Ayataka green tea in Japan and Fuze Tea, which we
expanded across multiple markets worldwide during the quarter. Juices and
juice drinks volume grew 9% in the quarter, with growth across all of our
geographic operating groups as we continue to introduce a common visual
identity across our portfolio of juice brands around the world. Energy drinks
volume also grew 9% in the quarter. Packaged water volume grew 1% in the
quarter, as we strengthened our focus on innovative and sustainable
immediate consumption packaging to grow value in the category.
Our two newest billion-dollar brands, I LOHAS single-serve water and
Ayataka premium green tea, both in Japan, grew 22% and 13%, respectively,
in the quarter, as we build on our strong history of brand innovation to capture
growth opportunities across beverage categories and occasions in this
important market. The Company now has 16 billion-dollar brands.

40
2.8: Product Profile
Different brands of company:
The Coca-Cola Company offers a wide range of products to the customers
including beverages, fruit juices and bottled mineral water. The Company is
always looking to innovate and come up with, either complete new products or
new ways to bottle or pack the existing drinks. The Coca-Cola Company has
a wide range of products out of which the following products are marketed by
HCCBPL:
Product Name Image
Coke
Diet Coke
Thums Up
Sprite
Fanta
Limca

41
Maaza
Minute Maid
Minute Maid Juices
Burn Energy Drink
Schweppes (Tonic Soda and Tonic
Water)
Georgia (Tea and Coffee Beverage)
Kinley Soda
Kinley Drinking Water

42
Manufacturing Plant,
Goblej,Kheda
Sales and Distribution
Operations
Distributors
Outlets
Outlets
2.9: Departmental Overview
2.9.1: MANUFACTURING UNIT OF HCCBPL
The industry has established it soft drink manufacturing and bottling plant at
Goblej, Dist. Kheda in Gujarat, India. An Effluent Treatment Plant involving
Activated Sludge process is designed and commissioned by CA to treat 1200
cu.m/day of effluent with inlet COD 3000 mg/L. The total cost of the project
was in Millions and the plant was successfully commissioned in 1998 with
treated effluent COD – 100 mg/L. The industry has appointed CA as their
consultants to operate and maintain the above mentioned treatment.
Fig: Chain followed from manufacture to distributors

43
Manufacturing Process at HCCBPL:
Fig: Manufacturing Process
The manufacturing of the products of Coca-Cola involves the following steps:
 Water is received from the River Cauvery and it passes through the
water treatment plant, further passing through the sand filter and the
activated carbon filter, so as to attain pure cleansed water.
 In the syrup room, the concentrate received from another bottling plant
is blended with the sugar syrup.
 Once both the water and the final syrup are ready, they are both mixed
together and sent to the carbonator section where Carbon Dioxide is
added to the mixture to form the final product.
 On the other hand, simultaneously, the returnable glass bottles are de-
palletized, inspected and washed for the purpose of filling in the final

44
product in it. This step does not take place in the PET bottle line as the
bottles once used are disposed
 The product is finally filled in the bottles, crowned (in case of RGB)/
capped (in case of PET bottles), labeled and cased in order to be sent
into the warehouse for distribution
Business Plan Model at HCCBPL:
Fig: Business Plan Model
Coca-Cola India
division, Gurgaon
Regional Bottlers
Customers
Manufactures
Concentrate, Beverage
base and Syrup
Manufactures finished
Bottles/Cans/Fountain
Syrup
Consumers

45
2.9.2: DISTRUBUTION PROCESS OVERVIEW:
Distribution of coca cola is done basically in two ways:-
a) Direct operation.
b) Indirect operation.
But the distribution of Coca Cola varies from place to place. In India Coca
Cola is doing his distribution by direct operation, indirect operation & by both
also. Especially in Rajkot Coca-Cola is doing its distribution by both direct
operation & indirect operation.
Distribution Network:
HCCBPL has a wide and well-managed network of salesmen appointed for
taking up the responsibility of distribution of products to diverse parts of the
cities. The distribution channels are constructed in such a way that the
demand of customers is fulfilled at the right place and the right time when they
need it. A typical distribution chain at HCCBPL would be:
Production  Plant Warehouse  Depot Warehouse  Distribution
Warehouse  Retail Stock  Retail Shelf  Consumer
The customers of the Company are divided into different categories and
different routes, and every salesman is assigned to one particular route(PJP),
which is to be followed by him on a daily basis. A detailed and well-organized
distribution system contributes to the efficiency of the salesmen.
DISTRIBUTION OF PRODUCT ACCORDING TO LOCALITY
Coca-cola Company distributes their schemes according to area. Area or
place where soft drinks sold in a large manner, on those place company gives
good schemes to shopkeeper and retailer. Place like railway station bus stand
are consider in this category and place which have low selling where
company gives small schemes to the shopkeeper.
Direct Operation:
Here company does its distribution by himself. There is no role of middle man.
Every activities of a distribution process is under the control of the company.
Here coca cola runs its own vehicles in that particular area for the distribution.

46
By direct operation company gains a lot. The direct operation of the coca cola
is as follows:-
In 2006 there were only 14 towns under DSD which has been increased to
more than 50 towns by 2012.
Indirect Operation:
Here in the distribution process middleman‟s role came into existence. In coca
cola the distributor is the middle man. Everything is not under the control of
the company. Basically Coca Cola Company selects a person for some
specific areas for the distribution process.
Indirect operation of coca cola in Rajkot is as follows:--
COMPANY
COMPANY
DSD RETAILERS CONSUMERS
COMPANY
COMPANY
DEPOT
DISTRIBUTOR
RETAILER
CONSUMER

47
2.9.3: MARKETING OVERVIEW
Marketing Objectives
The ultimate objectives of our business strategy are:
 To increase volume.
 Expand our share of worldwide nonalcoholic ready to drink
beverages sale.
 Maximize our long-term cash flows.
The Coca Cola system has more than 16 million customers around the world
that sells or serves our products directly to consumers. We keenly focus on
enhancing value for these customers and helping them grow their beverage
businesses. We strive to understand each customer‟s business and needs,
whether that customer is a sophisticated retailer in a developed market a
kiosk owner in an emerging market.
Target Market
Coke‟s commercials basically based on young generations, So, the young
generation is the target market of Coke because they want to represent Coke
with the youth and energy but they also consider about the old people they
take then as a co-target market.
Major Segments
Major segments are basically those people who take this drink daily and those
areas where the demand is higher than the other areas. There are so many
people who take this drink daily and those people who take weekly and those
who take less often are always there as well. So, their basic segments are
those people who take this drink regularly.

48
2.9.4: FOUR P’s OF BUSINESS MARKETING
Price, Promotion, Product, and Place
a) Product:
Businesses must think about products on three different levels, which are the
core products, the actual product and the augmented product. The core
product is what the consumer is actually buying and the benefits it gives.
Coca Cola customers are buying a wide range of soft drinks. The actual
product is the parts and features, which deliver the core product. Consumers
will buy the coke product because of the high standards and high quality of
the Coca Cola products. The augmented product is the extra consumer
benefits and services provided to customers. Since soft drinks are a
consumable good, the augmented level is very limited.
b) Promotion
Over the time Coca-Cola has spent millions of dollars developing and
promoting their brand name, resulting in worldwide recognition. 'Coca-Cola' is
the most recognized trademark, recognized by 94% of the world's population
and is the most widely recognized word after "OK". Coca Cola‟s red and
white colors and special writing are all examples of world-wide trademarks.
There are a number of branding strategies:
 Generic brand strategy
 Individual brand strategy
 Family brand strategy
 Manufacturer‟s brand strategy
 Private brand strategy
 Hybrid brand strategy
Coca Cola utilizes the Individual brand strategy as Coca Cola‟s major
products are given their own brand names e.g. Fanta, Sprite, Coca Cola etc

49
although they may be presented as different lines they operate under the
name of Coca Cola.
c) Place:
The Coca Cola Company has always focused wide scale distribution. This is
the reason, 94% of the world‟s population knows about Coke. “Coca Cola” is
the most recognized word after OK.
Coca Cola sets its own distributions directly to stores. Stores include a wide
variety of Supermarket, Marts, Convenience Stores, Retail Stores and
Departmental Stores. The channel distribution of Coca Cola Intl is extremely
large.
Over time, they have produced many products and thus have increased
number of warehouses for specific products.
Coca Cola Intl has also improved services via setting up a national service
network.
d) Price
Since Coca-Cola faces a major threat from its competitor Pepsi Co., so
naturally the Pricing is done keeping in view the increasing rivalry with Pepsi.
Pricing is basically standard for all over the world.

50
2.10: SWOT ANALYSIS
SWOT analysis is a basic, straightforward model that provides direction and
serves as a basis for the development of marketing plans. It accomplishes this
by assessing an organizations Strength (what an organization can do) and
Weakness (what an organization cannot do) in addition to Opportunities
(potential favorable conditions for an organization) and Threats (potential
unfavorable condition for an organization).
SWOT analysis is an important step in planning and its value is often
underestimated despite the simplicity in creation. The role of SWOT analysis
is to take the information from the surrounding and separate it from internal
issues (strength and weaknesses) and external issues (opportunities and
threats). SWOT analysis assists the firm in accomplishing its objectives
(strength or opportunity) and overcoming the obstacles (weakness or threats).
STRENGTHS:
1. Better network – covers whole of the city.
2. Brand recognition – brand image among customers
3. Brand equity – high equity in the market.
4. Advertisement policy – Coca Cola Company has endorsed with famous
celebrities like Aamir Khan, Hrithik Roshan, Akshya Kumar, Priyanka
Chopra, Kareena Kapoor and many more.
5. Bottling plants –27 wholly-owned bottling operations Supplemented by
17 franchisee-owned bottling operations and a Network of 29
contract-packers to manufacture a range of products for the company.
6. Promotional schemes – to activate sales company is providing
Umbrellas, Chairs, Tables, Racks, Flanges, Visicoolers & Glasses.

51
WEAKNESSES:
1. Weak and irregular supply.
2. Irregular visit of EXECUTIVES.
3. Low product availability.
4. Scarcity of manpower.
OPPORTUNITIES:
1. Greater opportunity in rural areas where Coca-cola can gain a
substantial base.
2. 70% of total population lies in rural area, and market penetration of soft
Drink is only 12% hence there is greater scope of increasing revenue
of the Coca-Cola Company.
3. Opening new outlets in the area where the coca cola‟s market share is
less.
4. Company should offer schemes for long term profit to the retailer so
that they get involved in long term association.
5. Covering greater institutional areas as younger generation gets much
Fascination out of such beverages.
THREATS:
1. Impulse customer‟s buy whatever is in the offer, so company should
2. Give offers regularly.
3. Health conscious people are boycotting soft drinks.
4. Threat from Competitors as they give offers at cheaper rates than
coca-cola.
5. It‟s too seasonal.
6. People are becoming health conscious.

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2.11: ABOUT COMPETITORS
The major competition faced by Coca-Cola International is PepsiCo Inc.
PepsiCo is a world leader in convenient foods and beverages, with revenues
of more than $66 billion and over 297,000 employees. The company consists
of the snack businesses of Frito-Lay North America and Frito-Lay
International; the beverage businesses of Pepsi-Cola North America,
Gatorade/Tropicana North America and PepsiCo Beverages International;
and Quaker Foods North America, manufacturer and marketer of ready-to-eat
cereals and other food products. PepsiCo brands are available in nearly 200
countries and territories.
Major PepsiCo. products include:
 Pepsi
 Teem
 Mirinda
 Pepsi Max
 Pepsi Lemon
 Pepsi Blue
 Mountain Dew
 7up
HCCBPL is also facing considerable amount of competition by local
companies and by local fountain beverages especially in Rajkot. Some market
segment is much conscious about price as well, so rather being brand loyal,
they would prefer local drinks which they can get at cheaper rate.

53
PART-II : Research Work
“Study on Role of Marketing Campaigns in
Sales Promotion of Coca-Cola Beverages”

54
CHAPTER: 3- INTRODUCTION OF THE STUDY:
3.1: BACKGROUND OF THE STUDY
Sales and distribution is an integral part of marketing. Here, Coca-Cola the
leading brand in soft drinks worldwide. Coca-cola has maintained its brand
image with high precision. The marketing strategy of Coca-cola products is
very stringent than others. The main features in their marketing are their
offerings and its sales and distribution. It‟s my gratitude to work with
Hindustan Coca-Cola Beverages Pvt. Ltd. especially in marketing department.
I have been placed their in sales and distribution department for my
internship. The research work was not as easy as HCCBPL is very strict in
their marketing policy. In the beginning the main reason for conducting this
study was to know the proper allocation of distribution to the suppliers and
also to know about the products sales. Further, it is to understand the
availability of the product and to check out that there is the proper advertising
of the product and also to know the working condition of the visi-cooler
provided by the company. Also to know the various schemes provided by the
HCCBL is really applied in the market or not and to compare the schemes
with Pepsi products and others. The study is done to understand the problem
of the retailers, to understand the presale concept and to increase the current
selling of products.
3.2: STATEMENTS OF THE PROBLEMS
Main reasons behind doing different kind of campaigns for sales promotion
was to solve some problems and to promote the current selling. HCCBPL was
facing some of the problems as stated bellow
1. Why some products of Coca-cola are not performing well in Rajkot
especially 200ml Coke?
2. Why numbers of retail outlets are decreasing from the existing one?
3. Why overcharging above MRP is being takes place by retailers in
market??
4. Why retailers are not satisfied with the profit margin given to them?

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3.3: OBJECTIVES OF STUDY
Primary objective:
 To find the role of marketing campaigns in sales promotion.
 To increase current selling by consumer awareness and creating totally
new outlets in the market.
Secondary Objectives:
 To analyze the distribution channel system.
 To check the brand availability.
 To analyze the effectiveness of the schemes launched by the
company.
 To find the retailer‟s satisfaction.
 To give valued suggestion to the company.
Campaigns undertaken to solve the problems
As HCCPBL was facing so many problems stated above, it became vital for
them to solve these problems by doing some of the marketing campaigns. By
keeping nature of the problems in mind, HCCBPL has designed some
marketing campaigns as bellow:
1. Shop in Shop Activity
To solve following problems:
 Why some products of Coca-cola are not performing well in
Rajkot especially 200ml Coke?
 Why overcharging above MRP is being takes place by retailers
in market??
2. Horizontal Expansion
To solve following problems:
 Why numbers of retail outlets are decreasing from the existing
one?
 Why retailers are not satisfied with the profit margin given to
them?

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CHAPTER: 4- RESEARCH METHODOLOGY
4.1: INTRODUCTION
The topic “Study on Role of Marketing Campaigns in Sales Promotion”
for the project work was suggested to me by the MOE (Market Operation
Executive) of Hindustan Coca-Cola Beverage private limited, Rajkot. He
asked me to conduct a study in areas where the coca-cola market is weak as
well as high and to make a study of problems arising in sales promotion.
Armed with the ideas provided to me by the MOE and the Area Sales
Manager, I went ahead for the research with the help of marketing campaigns
designed by them. While working on the campaigns I was responsible myself
to collect necessary information from the market which can be helpful in my
study. In my research, the retailers in Rajkot comprise the universe.
Therefore, they are the ones who constitute as the main source of information
to me. I also needed to be in contact with Market Developers for that
particular area in order get sufficient information about particular outlets.
4.2: RESEARCH DESIGN
The design appropriate for this study is Experimental Research Design.
Experimental research studies are also termed as Conclusive research
studies. The main purpose of such studies is to observe the current situation
and comparing it with situation after doing Experiment.
In marketing campaign called “Shop in Shop Activity”, I was analyzing
sales figures before the activity is done and after the activity is done at
particular outlet. In another campaign called “Horizontal Expansion”, I was
measuring the increase in sales after completion of some portion of this
campaign and total increase in sales after fully completion of this marketing
activity.
The study during these campaigns was conducted in RAJKOT by asking
retailers and market developers (MDs) of particular areas in which campaigns
are going on.

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4.3: SCOPE OF THE STUDY
1. By this study company can know its growth.
2. This study helps the company to know their actual position in the
market.
3. This study also helps to get a clear idea about where the company is
lagging behind & where it is ahead of its competitors.
4.4: DATA COLLECTION
The data can be dichotomized into two types: primary data and secondary
data. In this study the data collected was mainly primary data. The
respondents were from the area of Rajkot only. The secondary data were
obtained from the HCCBPL city office. The information collected for the
various objectives were from the total number of outlets covered by me under
those campaigns.
4.4.1: Method of data collection
There are different methods of data collection. They are observation,
experimentation, uncontrolled experimentation, controlled experimentation,
survey and focus group. Here the data are collected by market survey and
experiments.
Market survey and Experiments
Market survey is one of the most widely used MR (Market Research)
techniques. It is at times viewed as synonymous with marketing research.
This is erroneous. It has to be understood clearly that market survey is just
one of the techniques of MR and is not synonymous with MR. It is just one of
the methods of collecting marketing information required for a given marketing
assignment. It is used when the required data is not available with the
company‟s internal records, as well as external published source. Here the
researcher carries out opinion pools involving sales persons, dealers, traders
and experts. Trade surveys are very common. In conducting these surveys,
the researcher has to carefully select the instrument and methods of
surveying.

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4.5: INSTRUMENT FOR DATA COLLECTION
The primary data collected through the survey method for the purpose of the
study. The survey was done by doing Experiments with help of marketing
campaigns. Beside this I had an informal discussion with the retail outlets.
Secondary data: information regarding the organization was obtained from
secondary sources like company journals, company websites, publications &
records.
How Campaigns helped in collecting Data?
Basically these two campaigns called “Shop in Shop Activity” and
“Horizontal Expansion” were designed by MOE of HCCBPL to deal with the
problem statements mentioned earlier. My study was totally depends on
external market so I had to do some experiments through which I can come in
to direct touch with market. These two campaigns have shown their potentials
to solve all problems that HCCBPL was facing.
These campaigns have helped me to explore myself in market and also
helped me to collect important information from retail outlets and some other
outlets dealing with competitor‟s products as well. I have enough of
information with me through these activities and with the help of sales and
distribution staff of HCCBPL at Rajkot.
Literature Review:
 My Research was totally based on Market Experiments to solve
problems of HCCBPL. So, As a part of my Research Work , I had to
gain knowledge of different marketing experiments done by HCCBPL in
Past, especially in Rajkot.
 I surveyed literatures provided by my company guide on different
Marketing Campaigns conducted in past by HCCBPL in Rajkot. Some
problems were there in design and execution of those campaigns so
we had to design new campaigns to solve some market problems
HCCBPL was facing.

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CHAPTER: 5- ABOUT MARKETING CAMPAIGNS
What is Marketing Campaign?
Marketing Campaigns are specific activities designed to promote a product,
service or business. A marketing campaign is a coordinated series of steps
that can include promotion of a product through different mediums (television,
radio, print, online) using a variety of different types of advertisements. The
campaign doesn't have to rely solely on advertising, and can also include
demonstrations, word of mouth and other interactive techniques.
Gist of Marketing Campaign
A marketing campaign isn't something that comes to you while you're taking a
shower. Successful campaigns tend to be carefully researched, well thought-
out and focused on details and execution, rather than resting on a single,
grand idea. Planning a marketing campaign starts with understanding your
position in the marketplace and ends with details such as the wording of an
advertisement.
Keep in mind that your plan for a marketing campaign is not supposed to be a
prison. You have to leave room to make changes as you go along because no
plan can perfectly capture reality. But you should also be able to commit fully
to implementing your plan or some future version of it if you want to take a
strong step toward growth.
Need of Marketing Campaign
Nowadays it became very difficult to sustain market share and market growth
of the company even for market leaders so without doing any promotional
activities one may not survive in this competitive market.
Marketing campaigns helps in promoting your products and making
customers aware about your products. It also helps you to create brand image
of your products and so as of your company also. Hence marketing
campaigns has a vital role in sales promotion of products in competition.

60
Different ways to launch Marketing Campaign
Here are some ways to launch your campaign:
 Speak at community events: Offering your expertise at public
occasions is an easy way to get the word out about your business.
You'll maximize your impact and lend credibility to your product or
service.
 Ask customers for referrals: Generating referrals from current
customers is one of the best ways to market your business. Don't
forget to query your vendors (they're likely to have many contacts) and
explain to your customers exactly what kinds of referrals you're looking
for and how they can help.
 Spend two days in your customers' shoes: To find out what your
customers really want, visit a wide range of businesses they're likely to
frequent. Observe how customers are treated, as well as the kinds of
services that appear important to them; then adapt your business
accordingly.
 Offer free samples: If you can get someone to try your product or
service, chances are they'll buy it later. Have employees pass out
product samples in front of your business; if you provide a service, offer
free services on a trial basis.
Campaigns undergone for study purpose
Followings are the campaigns that I underwent during my SIP project and
through which I have collected some important information for my study.
1. Shop-In-Shop Activity
2. Horizontal Expansion

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5.1: Campaign 1: “Shop in Shop Activity”
5.1.1: What is Shop-In-Shop?
This campaign is been named as a “Shop-In-Shop Activity” because in this
campaign we were doing retail selling of 200ml coke at its MRP (i.e. Rs. 8) in
premises of selected outlets with prior permission of their owners. We were
having our separate stall with enough communication banners to deal with
consumers and were simultaneously doing same activity at different outlets in
different areas in a group of two.
5.1.2: Aim of Shop-In-Shop Activity
Main aim of this activity was to spread price awareness among our customers
and telling them, not to pay over its MRP (i.e. Rs. 8). During this activity we
came in a contact with thousand of consumers and tried to convince them to
fulfill main aims of this activity.

62
5.1.3: Need of Shop-In-Shop Activity:
This activity was needed not only for promoting 200 ml Coke but also was
needed to make consumers aware about actual MRP of 200 ml Coke.
Some retailers were charging more price than the MRP of 200 ml coke (i.e.
Rs. 8) which makes customers to switch on some other company‟s products
or to local fountain beverages.
It was very necessary to spread awareness among customers and that was
only possible through this type of activity
Why to promote 200ml Coke only through this campaign?
It was a subjective decision of HCCBPL to promote only 200ml Coke through
this activity because Coke is an oldest formula of Coca-cola and it is having
high market in other countries with compared to India.
Other products of Coca-cola are performing well in Rajkot although they all
are having more MRPs than Coke so it was in need to promote 200ml Coke to
increase sales of Coke and to compete with Pepsi.
5.1.4: How we executed Shop-In-Shop Activity?
This was the challenge for HCCBPL to successfully complete this activity. We
all interns were ready to work on this campaign so we all assigned under the
guidance of MOE and we were responsible for daily reporting for our work to
our company guide.
We all were given basic ideas about this activity and we had to work
accordingly. Generally we were working in a group of two throughout this
activity and all groups had been assigned to different outlets in different areas
of Rajkot to perform the same activity.
It was a role of Market Developers (MDs) who were working under STLs to
convince outlet owners for performing this activity in their premises for given
days. It was very difficult for MDs to convince outlet owners who were
overcharging for Coca-cola products as we were going to sale at its MRP but
still somehow they managed it and convinced them for this campaign. It was

63
pre-decided for us to sale 200ml Coke from the stock of outlet only and profit
would be of outlet owners.
How we were working during this Campaign?
We were about 5-6 groups with all equipments (i.e. Umbrella, Table-Chair,
Ice-Box, Counter-top, Different Communication Banners, etc.) given to
us. We all were working simultaneously at different outlets in different areas.
This activity should be performed minimum for two day at single outlet. It can
be done for more than two days depending upon footfall of that outlet.
We need to set our stall in such a way that people who passing from, could
see it easily. We had to manage for ice daily to keep bottles cool in Ice-box.
Payments for ice would be given by company so outlet owners didn‟t need to
spend for ice.
We need to convince people who come to that outlet to have coke or the
people who passing nearby. We were also responsible for giving answers for
the doubts of consumers and to aware them about price and product. We
were keeping record of sales and people visiting per hour. At the end of the
day we were summing up all figures to analyze per day selling. We always
need to be at our stall for customers during the time of activity and it was a
time of summer so peak time of a day would be more crucial to sale as many
Coke as possible.
People would attract by communication banners and table-top which were
having tag of “200 ml Coke only at Rs. 8”. We were having our pen and
papers with us to keep daily Sales Record and to note some questions asked
by peoples and suggestions given by them.
Through this campaign, HCCBPL became successful to expand the market
for “Coke “, and also helped their customers to be aware about price.
It was a major question for HCCBPL that after doing this campaign, whether
outlets will be agreed for not to overcharge and to sale product at its MRP
only.

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5.1.5: Major Challenges faced to successfully complete this Campaign
1. As our main goal was to convince our retailers to sale our products at
its MRP only not more than that so it was very difficult to convince all
the retailers because they were not satisfied with the profit margin
given to them by HCCBPL and that‟s why they were charging more to
earn more.
So this was a challenge for us to make our retailers agree with
company policies but at the end we convinced them with our marketing
skills and by simply telling them “Higher the Price lower the Demand
and Lower the Price higher the Demand” and we also proved this.
2. It was again a challenge for us to give answers of some difficult
questions asked by retail customers but we have managed it with our
deep knowledge about company‟s policies and their practices.
3. We were responsible to convince some people who have not tried
Coke to taste it once and also telling them how our product is good
then Pepsi product.
How Shop-In-Shop Activity helped me to do my study?
Before starting this campaign, we have surveyed market with the help of MDs
assigned under different distributor‟s area. We analyzed whole market and
current selling of particular product in particular area. So this information has
become prior observation before doing this campaign.
Now all we needed to do was to perform this campaign and to make it
successful. We were keen to know that what will the effects of this campaign
in the market later, whether it will help HCCBPL to expand its market or not?.
And finally we were very happy to conclude this campaign because it has
helped HCCBPL a lot to fulfill all their objectives behind this activity.
Market was far better than preview situation now after undergoing Shop-In-
Shop Activity in selected areas of Rajkot.

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5.1.6: Data Analysis and Interpretation of Shop-In-Shop Activity:
Table: Worksheet of Shop-In-Shop Activity
Sr.
No.
Date
(2013)
Outlet
Name
Address
(Rajkot)
Average
Footfall
per Day
Average Sale per Day (No.
of Bottles) Increase
in Sales
(in %)
Before
S-I-S
Activity
During
S-I-S
Activity
After
S-I-S
Activity
1
3
rd
to
5
th
April
Vishal Pan
Limda
Chowk
146
6-7
bottles
33
bottles
11-12
bottles
83-84%
2
6
th
to
9
th
April
Momai
Cold-
Drinks
Bhaktinagar
Circle
212
16-17
bottles
79
bottles
26-27
bottles
62-63 %
3
10
th
and
11
th
April
Balaji Belt
Boghani
Street, Soni
Bazar
169
12-13
bottles
62
bottles
17-18
bottles
41-42 %
4
12
th
and
13
th
April
Babul Pan
and
Coldrinks
Near
Keshari
Bridge,
Naklank
Chowk
126
5-6
bottles
42
bottles
9-10
bottles
80-81 %
5
15
th
to 17
th
April
Bajarang
Pan and
Tea
Yagnik
Road
204
15-16
bottles
57
bottles
19-20
bottles
26-27 %
6
18
th
and
19
th
April
Sakti Pan
Popat Para
main road
93
4-5
bottles
39
bottles
8-9
bottles
100%
7
20
th
and
22
nd
April
Patel Pan
Sadhu
Vaswani
Road
120
6-7
bottles
38
bottles
10-11
bottles
66-67 %
8
23
rd
to 25
th
April
Raj-
mandir
Cold-
Drinks
Sadhu
Vaswani
Road
132
8-9
bottles
44
bottles
14-15
bottles
75-76 %
9
26
th
and
27
th
April
Priya Pan
Kishan
Para
Chowk
247
12-13
bottles
42
bottles
15-16 25-26 %
10
29
th
April
to 1
st
May
Viddhi
Ice-Cream
Kalavad
Road, Opp.
Atmiya
College
193
13-14
bottles
53
bottles
18-19
bottles
38-39 %
11
2
nd
to
4
th
May
A-1
Coldrinks&
Ice
creams
Kotecha
Chowk
172
17-18
bottles
77
bottles
25-26
bottles
47-48%
Total/
Avg
4899
10-11
Btl/day
1554
(65 cs)
16-17
Btl/day
58 – 60
%

66
Above table shows the analysis and interpretation of the data collected by me
during this activity. It shows average selling per day before, during and after
Shop-In-Shop Activity. This table helps us to know effectiveness of this
campaign outlet wise and it also shows increase in the average selling of
200ml Coke at particular outlet.
Mainly I covered 11 outlets during this campaign to do retail selling of 200ml
Coke and I kept record of average footfall per day and average selling (In
bottles) per day as shown in table. Last column shows percentage increase in
sales at that particular outlet.
How I found average selling per day, before and after?
Before starting “Shop-In-Shop Activity” at any outlet, I was getting information
about per day selling from outlet owners and with the help of Market
Developers (MDs) of that area. Through this I got idea about per day selling of
that outlet before this campaign.
I was also keeping record of per day selling during this activity so that I can
measure the effectiveness of Shop-In-Shop.
Main challenge was to measure increase in sales at particular outlet after
completion of this campaign at that outlet. For this, I was visiting those outlets
daily for next 10 days at which we performed this activity and was asking
them about increase in sales of 200ml Coke due to this campaign. So, this
how, I collected data about increase in sales at particular outlet.
Table Shows
 Shop-In-Shop Activity has positive result as it has helped HCCBPL to
fulfill desired aims and helped to solve problems.
 Total Avg. Increase in sales of these 11 outlets was about 58% to
60% and I sold total 1554 bottles (i.e. ~65 CS) of 200ml Coke at the
end of this activity.
 Total number of retail customers I came in touch with during this entire
activity were near about 4899 (Customers might got repeated), so most

67
of them got awareness about product price and service we provided to
them.
 Average selling of all these 11 outlets was 10-11 bottles per day
before S-I-S activity. It was 51-52 bottles per day during S-I-S
activity and increased to 16-17 bottles per day after S-I-S activity.
5.1.7: RESULT AND FINDINGS
Chart 1:
Chart: 1- Avg. bottle sold per day before and after S-I-S Activity at each outlet
Above bar chart demonstrates the data available in previous table. Chart
includes all outlets that I covered during shop-in-shop activity.
0
5
10
15
20
25
30
OL-1 OL-2 OL-3 OL-4 OL-5 OL-6 OL-7 OL-8 OL-9 OL-10 OL-11
6.5
16.5
12.5
5.5
15.5
4.5
6.5
8.5
12.5 13.5
17.511.5
26.5
17.5
9.5
19.5
8.5
10.5
14.5 15.5
18.5
25.5
Increase in Sales(Outlet wise)
Before S-I-S Activity After S-I-S Activity

68
In char-1, Bars in front show average bottle sold per day before S-I-S activity
at particular outlet and bars at backside show average bottle sold per day
after S-I-S activity at particular outlet.
Chart 2:
Chart: 2-Total avg. selling per day before, during and after S-I-S Activity
Chart-2 shows total average selling of 200ml Coke of all 11 outlets per day
before, during and after Shop-In-Shop Activity.
Before S-I-S, Avg. selling was 10.5 bottles per day of all outlets and during
this activity, average selling was much higher, i.e. 51.5 bottles a day and due
to this activity total average selling increased to 16.5 bottles a day.
5.1.8: CONCLUSION OF SHOP-IN-SHOP ACTIVITY:
All above charts and table shows that “Shop-In-Shop Activity” has helped
HCCBPL to increase average selling of 200ml Coke in given areas of Rajkot.
It has got the growth of 58% to 60% in selling of Coke at those 11 outlets.
This activity has proved its role in sales promotion of Coca-cola product and
spread awareness among thousands of people about Price and Product. It
was executed effectively to achieve desired results and HCCBPL has got that.
10.5
51.5
16.5
0
10
20
30
40
50
60
Before S-I-S During S-I-S After S-I-S
Total Avg. Selling Per day

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5.2: Campaign 2: “Horizontal Expansion”
5.2.1: What is “Horizontal Expansion” in General meaning?
It is an expansion of business capacity through the absorption of facilities or
buildings as well as through the acquisition of new equipment to handle an
increased volume in sales in which the business is already engaged. In
microeconomics and strategic management, the term Horizontal Expansion
describes a type of ownership and control. It is a strategy used by a business
or corporation that seeks to sell a type of product in numerous markets.
Horizontal Expansion in marketing is much more common than Vertical
Expansion is in production. Horizontal Expansion occurs when a firm is being
taken over by, or merged with, another firm which is in the same industry and
in the same stage of production as the merged firm, e.g. Pepsi has adopted
strategy of Vertical Expansion by which Pepsi wants to improve its sale from
Coke monopoly outlets, means Coke‟s monopoly outlets are being taken over
by Pepsi now in this condition to improve its sale Coca-cola needs to open
new outlets which is called Horizontal Expansion Strategy. A monopoly
created through Horizontal Expansion is called a Horizontal Monopoly.
5.2.2: Need of Horizontal Expansion
The ultimate objective of Coca-cola is to acquire more customers and serve
them properly. While doing Horizontal Expansion take care to the competitor‟s
strategy. The main competitor is PEPSI, who has opted Vertical Expansion to
generate more sell however Coca-cola does not believe on Vertical
Expansion because Vertical Expansion has limited preview so Coca-cola is
great believer in Horizontal Expansion and this strategy helped to the
company to maintain its leadership in the soft drink industry. India is a big
country having diversified taste and appearance and same character is
reflected in their demography. Horizontal Expansion helps the company to
serve more people and more customers touch points.
Main reason behind doing Horizontal Expansion was to sustain against the
competitors‟ strategies. It was very necessary for HCCBPL to keep their
growth high and for that this kind of market expansion campaign was needed.

70
5.2.3: How we performed “Horizontal Expansion”?
This campaign was all about “Creating new outlets” for selling of Coca-cola
products. Horizontal Expansion is one of the most effective market expansion
strategy used by well reputed companies in the world. Making expansion in
same business or for same product can be referred as a Horizontal
Expansion.
We were working in a group of 2 people and we had such 4 groups in our
team to perform this campaign of Horizontal Expansion. We all had been
provided enough materials (such as Product Samples, Price List of Products,
NC kits, NC forms, etc.) and information needed to do this activity. We were
working in clusters to perform “HE” in some main areas of Rajkot, such as
1. Mavdi 4. Sadhuvasvani Road
2. Atika 5. University Road
3. Bajarang vadi 6. Kalavad Road
We used to have get meetings with MOE (Our company guide) and STL to
design our day to day activity. Our guide decides which group will cover which
area and we had to work accordingly. Different group would be covering
different areas. We were responsible for reporting our day to day work to him.
To convince new outlets we had to tell them all benefits will be given to them
by coca-cola if they agree to sell our products. We were also responsible for
doing commitment to provide visi-cooler if required and to collect necessary
documents from them for further processing.
Targeted Outlets
Basically we were targeting outlets like:
E&Ds (Eating & Drinking), Grocery Shops, Dairy farms and Medicals (for
Kinley Water).

71
Reason behind targeting all above outlets was mainly to attract ladies
customers to purchase Coca-cola products especially available in PET.
Usually they don‟t visit PAN shops to purchase PET bottles.
We were also targeting outlets having Pepsi products to convert them in to
Coca-cola outlets.
We were targeting Medical stores for Kinley water available in 500ml as well
as in 1ltr.
Above, in the picture is one of the outlets we convinced for Horizontal
Expansion. You can see the display of Coca-cola products as per the
company norms. We were responsible to inform distributors to dispatch
products at newly convinced outlets as per the order generated by them. And
we would be making display of products in convenience to outlet space.

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5.2.4: How we convinced for new outlets?
To do Horizontal Expansion more efficiently we made a profit story and talked
to the shopkeepers according to that story.
Story:
Salesperson – Hello sir, I am from Coca-cola and I have a proposal that will
surely increase your income. May I present you?
Shopkeeper – Yes, you can present it.
Salesperson – Thank you Sir, if you will start to sell our products then your
overall sale will be increased and it is not tough to sell our products because
Coca-cola is the leader in beverage industry and a very well known brand.
Shopkeeper- Okay I know that, but how it will increase my overall sale?
Salesperson - Sir, you are selling Chips, Pastries, Snacks and kind of things.
So these products have a very good combination with cold drinks. If a person
wants to purchase any of these products then it is quite possible that he/she
will purchase Coca-cola products and vice versa.
Shopkeeper- May be but I have to put your products in the cooler to chill and
without cooler, I think it‟s impossible for me to sale your products.
Salesperson- Sir you are right but see, in starting, I want you to keep PET
bottles only. People can‟t consume whole bottle at a time and they would
purchase to bring it home and will keep there in fridge. And we will also
provide you cooler once you start selling our products but it has legal
processor through which we need to pass which will take around 25 days to
dispatch your cooler. So you can start with small order also.
Shopkeeper- Okay but what is overall profit margin and do you provide any
extra schemes?
Salesperson- Yes sir, we currently have market schemes on purchase of
whole case. We are giving 2 free bottles of 1 ltr kinley water on case of any of
our products (600ml, 1.25ltr, 2,25ltr). We provide 1 free bottle of 400ml on

73
purchase of 400ml case. On purchase of kinley soda, we provide 2 bottles
free of the same. For mazza tetra packs, we are giving 3 pieces free on
purchase of 1 case.
Including this schemes, your total profit margin will be around 12-13 %, which
is not bad.
Shopkeeper – Okay and how much profit can I earn through your products?
Salesperson – Sir if you are really interested to explore through our products,
you may be able to sell 1 case of 400ml, 1 case of 600ml, 1 case of 1.25ltr
and 1 case of 2.25ltr in mix. And to start selling our products you need to
invest near about 2281 Rs.
We will also provide you free NC kit as compulsory given by Coca-cola and
Communication banners or rack to hold our products if you want.
Consider following table (for non-coke products only with scheme):
Weight of
products
Rate per
case(Rs.)
Qty MRP (Rs.)
Revenue
(Rs.)
Profit (Rs.)
400ml 522 24+1 free 23 575 53
600ml 677 24+ 2 K.W. 30 760 83
1.25ltr 496 12+ 2 K.W. 45 580 84
2.25ltr 586 9 + 2 K.W. 70 670 84
Total 2281 304
Sir if you order same, 8 times in a month (Even in Peak season)
Profit per month will be (in Peak season) = Rs. 2432
Profit of whole peak season = Rs. 9728
(Consider peak season of our products is only of 4 months)
Profit of rest of the 8 months (Per month: Rs.1824) = Rs. 14592
(Because as per assumption that in OFF season our income becomes 2/3
with compare to the peak season)

74
Profit of whole year = Rs. 24,320
Your investment = Rs. 2281
Your ROI = 24,320 * 100/2281
= 1066.199%
Shopkeeper - But I do not think this much will work what about electricity bill
that I need to bear to keep your products cool?
Salesperson- Nice question sir but let me tell you. If you are keeping our
cooler ON for whole day, it will consume power as low as 2 units per day.
Which, we can‟t compare with your rate of return.
So, what you have to say about our offer?
Shopkeeper - Yes, I think it will be a profitable deal to accept your offer.
Salesperson - Thank you sir and Congratulation (Shaking Hands). Your order
will be dispatched within 2 days as our salesman will have this route.
On some big outlets we had to offer coolers and for that we were in need to
collect 1 photo copy of Driving license, 1 photo copy of electricity bill and 1
passport size photo of shopkeeper.

75
5.2.5: RESULT AND FINDINGS (Outcome of Horizontal Expansion)
Apart from the other benefits of horizontal expansion, its main benefit is to
generate incremental revenue for the company. During the project I studied
strategies and analyzed the market. My major job was to use different tools
provided by the company for horizontal expansion like visi-coolers, ice box
etc. to open outlets for coca-cola products. With my other team mates I
targeted the market of Rajkot and our outcome was as follows:
No. of New outlets in 150ft Road=12
No. of New outlets in Mavdi Chowk area=11
No. of New outlets in Sadhuvasvani Road = 8
No. of New outlets in Bajarang wadi area= 6
No. of New outlets in Atika area= 5
No. of New outlets in other areas= 13
Total new outlets created during “HE”= 55
(Note: see annexure for the list of outlets)
Revenue generated through Horizontal Expansion for the company
Average order at each outlet = 3 cases per outlet
Total Sales = 55*3 = 165 cases
Avg. price per case =Rs. 570 (approx.)
Total Revenue generated in single order = 570*165
= Rs. 94,050
If we assume that each new outlet will place same order 4 times in a month
then Total Revenue per year = 94050*4*12 =Rs. 45,14,400.
Hence we can see the huge revenue generated by the horizontal Expansion.
It also increased the visibility and market share of the coca cola products.

76
Revenue generated by “HE” for different distributors:
There are different distributors of coca-cola in Rajkot to cover different areas.
We helped those distributors to increase their revenue by creating new outlets
in their areas. All 55 new outlets created by us are served by specific
distributor under which particular outlets fall. Following chart shows revenue
generated for different distributors by “Horizontal Expansion”.
Chart 3:
Chart: 3- Revenue generated from the 1st
order for particular distributor
Above chart illustrates revenue generated from the first order of all 55 new
outlets for individual distributor. From this chart we can conclude that Balaji
Enterprise has generated large amount of revenue through this campaign
undertaken by us. More numbers (14 outlets) of new outlets fall under area of
this distributor so it has generated high revenue. Parth Enterprise has
generated revenue from 11 new outlets simultaneously Madhav and Siddhbali
Enterprises have generated revenue from 13 and 7 new outlets respectively.
10 outlets were covered by other distributors of Rajkot.
Parth
Enterprise
Balaji
Enterprise
Madhav
Enterprise
Siddhbali
Enterprise
Other
Distributor
s
Revenue Generated 18,810 23,940 22,230 11,970 17,100
0
5
10
15
20
25
30
Rupee
Thousands
Revenue Generated

77
5.2.6: Benefits of horizontal expansion
 Provides Incremental Volume & Revenue for the Business.
 By horizontal expansion there will be more outlets of our products in
the market which will sell our products in more quantity. This will
generate incremental revenue for the business.
 Helps to improve route productivity:
 There are pre determined routes through which product is transported
and delivered at the coca-cola outlets. If we open more outlets on the
routes it will increase the productivity because more outlets will be
covered and more products will be delivered with a negligible increase
in time and efforts. Hence it will improve productivity of the route.
 Opening new outlets will also give more revenue to our distributors
hence it improves profitability of our distributors.
 Reduced dependence on large customers. We know that coca-cola
products have a very good demand and to comply with this we have to
provide large amount of supply. In case we have few outlets a large
amount of stock is gathered at few retailers. In this case they become
monopolistic and so they can demand more things like coolers,
discounts, margins etc. from the company. So it is very necessary to
reduce dependence on large retailers by opening new outlets.
5.2.7: Role of “Horizontal Expansion” in Sales Promotion
This campaign named “Horizontal Expansion” has proved its role in sales
promotion of coca-cola products as it has helped in generating large amount
of incremental revenue for Coca-cola. It has also helped to convert Pepsi
outlets in to Coca-cola outlets. These newly generated “55” outlets will help
HCCBPL to come in touch with more number of retail customers which
ultimately leads to expand current market of Coca-cola.
Hence we can say that this campaign has served its purpose for which had
been designed.

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