HINDUSTAN COCA-COLA BEVERAGES

PRIVATE LIMITED

“Think local, act local”

Submitted To:- Submitted By:-

Mr. Pitamber Dwivedi Yashi Arora

Priyanka Singh

Priyanka Shee

Anuj Dalal

Mohd. Rizvan

Dharmesh
 ACKNOWLEDGMENT

We are grateful to Mr.Pitamber Diwedi of IILM GSM who gave us project to work to
understand the distribution channel of a company .We chose COCA-COLA better known
as HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED.

We would like to thank to my institute also where we got all the knowledge and skills
required for this project work.

We are obliged to our faculty Mr.Diwedi who took our project seriously and kept check
on this time to time without the co-opeartion this work certainly would not have been as
complete as it now.

ABOUT THE COMPANY

Coca-Cola was the leading soft drink brand in India until 1977, when it left

rather than reveal its formula to the Government and reduce its equity stake

as required under the Foreign Regulation Act (FERA) which governed the

operations of foreign companies in India. Coca-Cola re-entered the Indian

market on 26th October 1993 after a gap of 16 years, with its launch in Agra.

An agreement with the Parle Group gave the Company instant ownership of

the top soft drink brands of the nation. With access to 53 of Parle’s plants

and a well set bottling network, an excellent base for rapid introduction of

the Company’s International brands was formed. The Coca-Cola Company

acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which

were floated by Parle, as these products had achieved a strong consumer

base and formed a strong brand image in Indian market during the re-entry

of Coca-Cola in 1993.Thus these products became a part of range of

products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Colamade its re-entry
into India through its 100% owned subsidiary, HCCBPL, the

Indian bottling arm of the Coca-Cola Company. Coca-Cola follows, with punch

lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for

Rural India. Between 2001 and 2003, the per capita

consumption of cold drinks doubled due to the launch of the new packaging

of 200 ml returnable glass bottles which were made available at a price of

Rs.5 per bottle. This new market accounted for over 80% of India’s new

Coca-Cola drinkers

VALUES

The values that the employees in the Company are expected to keep up to

and work by regularly are as follows:

•LEADERSHIP: To take an initiative and lead, motivate and drive the

team with energy and zeal, to deliver outstanding results.

•INNOVATION: To continuously strive for progress and reach the next

level of excellence in everything we do.

•PASSION: To be deeply committed and display drive and energy in

the quest to deliver outstanding performance.

•TEAMWORK: To unite for greater strength and work collectively as a

group towards the achievement of common goals.

•OWNERSHIP: To think and act like owners at all levels; to have

decisions taken at the lowest appropriate level.

•ACCOUNTABILITY: To be individually and transparently accountable

to our colleagues for delivering agreed targets and goals.

VISION

To provide exceptional strategic leadership in the Coca-Cola India System resulting

in consumer and customer preference and loyalty, through Coca-

Cola’s commitment to them, and in a highly profitable Coca-Cola Corporate

branded beverages system.

MISSION

To create consumer products, services and communications, customer

service and bottling system strategies, processes and tools in order to

create competitive advantage and deliver superior value to;

•Consumers as a superior beverage experience

•Consumers as an opportunity to grow profits through the use of

finished drinks

•Bottlers as an opportunity to grow profits in volumes

•Bottlers as a trademark enhancement and positive economic value

Added

•Suppliers as an opportunity to make reasonable profits when creating

real value-added in an environment of system-wide team work,

flexible business system and continuous improvement

•Indian society in the form of a contribution to economic and social

development.

QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds

and actions by continually improving our processes…Every time.”

 MANUFACTURING UNIT OF HCCBPL

The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest

plant and one of the bottling operations owned by the company. The Plant

has one PET line which has the capacity of yielding 209 bottles, per minute,

two RGB (Returnable glass bottles) lines which yields 600 bottles per minute

each and one Juice line which yield 155 bottles per minute. It caters to the

whole of South Karnataka through a network of more than 80 distributors.

There are three depots in Bangalore; North Depot, East Depot and Mega

Depot.

MANUFACTURING PROCESS AT HCCBPL

The manufacturing of the products of Coca-Cola involves the following steps:

Water passing from River Cauvery,passes through water treatment plan.and then
activating carbon filter to attain pure filled water.

In the syrup room, the concentrate received from another bottling

plant situated at Pune, is blended with the sugar syrup

Once both the water and the final syrup are ready, 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 Depalletized , inspected and washed for
the purpose of filling in the final product in it.
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.

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 it

is needed by them.

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,

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.

It also leads to low costs, higher sales and higher efficiency thereby leading

to higher profits to the firm.

 DISTRIBUTION ROUTES
•Key Accounts: The customers in this category collectively

contribute a large chunk of the total sales of the Company. It

basically consists of organizations that buy large quantities of a

product in one single transaction. The Company provides goods to

these customers on credit, payments being made by them after a

certain period of time i.e. either a month of half a month.

Examples: Clubs, fine dine restaurants, hotels, Corporate houses

etc.

•Future Consumption: This route consists of outlets of Coca-Cola

products, wherein a considerable amount of stock is kept in order to

use for future consumption. The stock does not exhaust within a day

or two, instead as and when required stocks are stacked up by them

so as to avoid shortage or non-availability of the product.

Examples: Departmental stores, Super markets etc.

•Immediate Consumption: The outlets in this route are those

which require stocks on a daily basis. The stocks of products in

these outlets are not stored for future use instead, are exhausted on

the same day and might run a little into the next day i.e. the

products are consumed at a fast pace.

Examples: Small sized bars and restaurants, educational

institutions etc.

•General: Under this route, all the outlets that come in a particular
area or an area along with its neighboring areas are catered to. The

consumption period is not taken into consideration in this particular

route.

DISTRIBUTION SYSTEM
•Direct distribution: In direct distribution, the bottling unit or the

bottler partner has direct control over the activities of sales, delivery,

and merchandising and local account management at the store level.

•Indirect distribution: In indirect distribution, an organization which

is not part of the Coca-Cola system has control on one or more of the

distribution elements (Sales, delivery, merchandising and local

account management)

•Merchandising: Merchandising means communication with the

consumer at the point of purchase to convey product benefit, value

and Quality. Sales people and delivery personnel both have this

responsibility. In certain locations special teams who go into business

locations to specifically merchandise our products.

DEPARTMENTS INVOLVED IN THE DISTRIBUTION

PROCESS
The Distribution process mainly consists of three departments:

•Distribution Department: It appoints distributors and establishes a

distribution network, processes approved sale orders and prepares

invoices, arranges logistics and ship products, co-ordinates with

distributors for collections and monitors distribution stocks and their

set-up.

•Finance Department: It checks credit limits and approves sales

orders in compliance with the credit policy followed by the firm,

records collections from distributors, periodically reconciles

outstanding balances from distributors, obtains balance confirmation

from distributors and follows up outstanding balances.

•Shipping or Warehousing Department: It dispatches goods as

per approved by order, ensures that stocks are dispatched on a FIFO

basis, ensures physical control over load out area and updates

warehouse stock records in a timely manner

Evolution of Channels of Distribution :

What’s the
value added Direct Retailer Wholesaler Agent/Broker Agent/Broker
from each Channel Channel Channel Channel Channel
Intermediary?
Producer Producer Producer Producer Producer

Agents or Agents or
Brokers Brokers

Wholesalers Wholesalers Wholesalers

Retailers Retailers Retailers Retailers

Can we retain
the value
without Consumers Consumers Consumers Consumers Consumers
intermediary?

Conventional Vertical Marketing

Marketing Channel System (VMS)

Channels of Distribution
 The Distribution
Channel at Coca-Cola

Retailers
Super-
markets,
Kiosks Consumers

Airlines
Bottler

Clubs,
Bars
Restaur-
ants,
Hotels

Vending
machines

Coca-Cola is made up of 7000 local employees, 500 managers, over 60

manufacturing locations, 27 Company Owned Bottling Operations (COBO),

17 Franchisee Owned Bottling Operations (FOBO) and a network of 29

Contract Packers that facilitate the manufacture process of a range of

products for the company. It also has a supporting distribution network

consisting of 700,000 retail outlets and 8000 distributors. Almost all goods

and services required to cater to the Indian market are made locally, with

help of technology and skills within the Company. The complexity of the

Indian market is reflected in the distribution fleet which includes different

modes of distribution, from 10-tonne trucks to open-bay three wheelers that

can navigate through narrow alleyways of Indian cities and trademarked

tricycles and pushcarts.

SWOT ANALYSIS:
STRENGTHS WEAKNESS
.Distribution networks
.LOW EXPORT LEVELS
.Strong brands
. SMALL SCALE SECTOR
.Low cost of operations RESERVATIONS LIMIT
ABILITY TO

INVEST AND ACHIEVE

ECONOMIES OF SCALE

OPPORTUNITIES THREATS
.Large domestic markets .Imports

.Export potential .tax and regulatory

sector
.Higher Income among
people .slowdown in rural
demand

COMPETITORS TO HCCBPL

The competitors to the products of the company mainly lie in the nonalcoholic

beverage industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:

•PepsiCo: The PepsiCo challenge, to keep up with archrival, the

Coca-Cola Company never ends for the World's # 2, carbonated softdrink

maker. The company's soft drinks include Pepsi, Mountain Dew,

and Slice. Cola is not the company's only beverage; PepsiCo sells

Tropicana orange juice brands, Gatorade sports drink, and Aquafina

water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-
Cola hold together, a market share of 95% out of

which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.

•Dabur: Dabur in India, is one of the most trusted brands as it has

been operating ever since times and people have laid all their trust in

the Company and the products of the Company. Apart from food

products, Dabur has introduced into the market Real Juice which is

packaged fresh fruit juice. These products give a strong competition

to Maaza and the latest product Minute Maid Pulpy Orange.

•Nestlé: Nestle does not give that tough a competition to Coca-Cola

as it mainly deals with milk products, Baby foods and Chocolates. But

the iced tea that is Nestea which has been introduced into the market

by Nestle provides a considerable amount of competition to the

products of the Company. Iced tea is one of the closest substitutes to

the Colas as it is a thirst quencher and it is healthier when compared

to fizz drinks. The flavored milk products also have become

substitutes to the products of the company due to growing health

awareness among people.

PRODUCTS SECTION
In the Cola SECTION-DIET COKE ,COCA-COLA,THUMS UP

In the LEMON SECTION- SPRITE ,LIMCA

In the ORANGE SECTION-FANTA

In the JUICE SECTION-MAAZA,MINUTE MAID PULPY ORANGE

In the Soda Water and Bottled Mineral Water section: SCHWEPPES,KINLEY

In the Tonic Water section: SCHWEPPES

Conclusion:
It was a good opportunity to

work on the skill of patience, as a large number of customers were to be

dealt with. It helped in developing the kind of relations one needs to uphold

in the corporate world and it helped in building up the right attitude.