Coca Cola Report

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

AN INTERNSHIP REPORT

ANURADHA NAYAK SSN: 888-93-2972

IN PARTIAL FULFILMENT OF THE MASTERS PROGRAM IN BUSINESS ADMINISTRATION, OHIO UNIVERSITY, ATHENS, USA

OHIO UNIVERSITY CHRIST COLLEGE ACADEMY FOR MANAGEMENT EDUCATION CHRIST COLLEGE CAMPUS HOSUR ROAD, BANGALORE-29 APRIL 2007

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_______________________________________________

ACKNOWLEDGEMENT I would like to thank my Mr. U Narendra Kini, General Manager, Coca-Cola India, without whom an internship with, Hindustan Coca-Cola Beverages Private Limited (HCCBPL) would not have been possible. I am grateful to him for having taken time off his busy schedule and spoken to the concerned person to get me this internship. I express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them and make the best out of my internship. I thank my trainers, Miss Poornima and Miss Neha Kashyap for having trained me and constantly guided and supported me throughout the training period. My heartfelt gratitude also goes out to the staff and employees at HCCBPL for having co-operated with me and guided me throughout the one and a half months of my internship period. I thank my school, Ohio University Christ College Academy of Management Studies for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank the internship co-coordinators, Dr. Amalendu Jyotishi and Mr. Girish M for having guided and supported me through the course of the internship. I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support.

_______________________________________________

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EXECUTIVE SUMMARY Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a threelegged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. CocaCola 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. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The main objective of this study lies in understanding the organization and studying and understanding the consumers’ perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the

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prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The methodology used in studying and understanding the perceived views of consumers towards the product was ‘SAMPLING’. The findings of the activity have been drawn out in form of graphs and suggestions have been offered there from.

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION………………………………………………… …7 1.1: A brief insight- The FMCG Industry in India………………………… …………..8 1.2: A brief insight- The Beverage Industry in India…………………… ………….10 Figure 1: Beverage Industry in India………………………… ……….10

CHAPTER 2: THE COCA-COLA COMPANY………………………………… …13 2.1: History………………………………………………………………………… ……………..13 2.2: History of Bottling………………………………………………………… ……………..15 2.3: Manifesto for Growth……………………………………………………… ……………18 2.3.1: Values………………………………………………………………………… ………………18 2.3.2: Mission……………………………………………………………………… ………………..19

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2.3.3: Vision for Sustainable Growth………………………………………… ……………..19 Figure 2: Vision for Sustainable Growth……………………………… …………20

CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED………………………………………………………………………..…… 21 3.1: About the Company……………………………………………………… …………….21 Figure 3: Location of COBO, FOBO and Contract packers… ……..22 3.2: Manifesto for Growth……………………………………………………… ……………23 3.2.1: Values………………………………………………………………… ……………23 3.2.2: Vision for Sustainable Growth………………………………… …………..23 3.2.3: Mission……………………………………………………………… ……………..24 3.2.4: Quality Policy……………………………………………………… …………….24 3.3: Organization Structure of Coca-Cola India………………………… ……………25 Figure 4: Organization Structure of Coca-Cola India……… ……….25 Figure 5: Organization Structure of Coca-Cola India……… ……….26 3.4: Organization Structure of the Sales Department in HCCBPL…… ………..27

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Figure 6: Organization Structure of the Sales Department…….27 3.5: Manufacturing Unit of HCCBPL………………………………………… ……………28 Figure 7: Chain followed from Manufacture to Distribution…….28 3.6: Manufacturing process at HCCBPL…………………………………… …………..29 Figure 8: Manufacturing process……………………………… …………29 3.7: Business Plan model at HCCBPL……………………………………… …………….30 Figure 9: Business Plan model at HCCBPL………………… …………30 3.8: Distribution Network……………………………………………………… …………….31 3.8.1: Distribution Routes……………………………………………… …………….31 3.8.2: Distribution System……………………………………………… ……………32 3.8.3: Departments involved in the Distribution process……… ………….33 3.9: SWOT Analysis of HCCBPL……………………………………………… ……………33 3.9.1: Strengths…………………………………………………………… …………….33 3.9.2: Weaknesses………………………………………………………… ……………34 3.9.3: Opportunities……………………………………………………… …………….35

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3.9.4: Threats……………………………………………………………… ……………..36 3.10: Competitors to HCCBPL………………………………………………… ……………37 CHAPTER 4: PRODUCTS………………………………………………………… 38 5.1: Packaging details………………………………………………………… ………………40

CHAPTER 5: PROJECT: PERCEPTION OF CONSUMERS TOWARDS MINUTE MAID PULPY ORANGE…………………………………………… …..41 5.1: Objective of the Study…………………………………………………… …………….42 5.2: About the Product………………………………………………………… ……………..42 5.3: Methodology………………………………………………………………… …………….43 5.4: Procedure…………………………………………………………………… ………………44 5.5: Findings……………………………………………………………………… ………………45 5.5.1: Graph 1: Total number of Consumers based on Age Group……45

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5.5.2: Graph 2: Total number of Consumers based on Gender… ………46 5.5.3: Graph 3: General reaction of Consumers about MMPO… ………..46 5.5.4: Graph 4: Reaction analyzed on basis of Age Group……… ……….48 5.5.5: Graph 5: Reaction analyzed on basis of gender………… ………….50 5.6: Additional Details………………………………………………………… ………………51 5.7: Suggestions………………………………………………………………… ………………53 CHAPTER 6: CONCLUSION………………………………………………… …...54 APPENDIX………………………………………………………………………….. 55 DATA SOURCES…………………………………………………………………… 58

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CHAPTER 1: INTRODUCTION _______________________________________________ Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The CocaCola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The

Company

aims

at

increasing

shareowner

value

over

time.

It

accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They

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aim at managing their business well with people who are strongly committed

to

appropriately

the

Company

controlled

values

environment,

and to

culture meet

and

providing

business

goals

an and

objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.

1.1: A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased

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availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country

that

witnessed

firms

moving

away

from

outsourcing

to

manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular, March) The FMCG sector consists of the following categories:

•

Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries,

Deodorants

and

Perfumes,

Paper

products

(Tissues,

Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.

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•

Household

Care- Fabric wash (Laundry soaps and

synthetic

detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.

•

Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur

•

Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

1.2: BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

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BEVERAGES

Alcoholic

Non-Alcoholic

Carbonated

Cola

Non-Carbonated

Non-Cola

Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

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

•

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.

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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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CHAPTER 2: THE COCA-COLA COMPANY _______________________________________________ 2.1: HISTORY Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first “distributed” the product by carrying it in a jug down the street to Jacob’s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed “delicious and refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.

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Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He suggested that “the two Cs would look well in advertising.” The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States.”

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As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making CocaCola one of the most recognized and valued brands around the world.

2.2: HISTORY OF BOTTLING Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.

YEAR WISE HISTORY OF BOTTLING: Year 1894: A modest start for a bold idea

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In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage

called

Coca-Cola

impressed

the

store's

owner,

Joseph

A.

Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. Year 1899: The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle CocaCola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture. Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world.

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In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. In the 1940s: Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960. In the 1960s: Introduction of new brands

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Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world. In the 1970s and 1980s: Consolidation to serve customers Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships

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between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

2.3: MANIFESTO FOR GROWTH 2.3.1: VALUES: Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being:

•

LEADERSHIP: The courage to shape a better future

•

PASSION: Committed in heart and mind

•

INTEGRITY: Be real

•

ACCOUNTABILITY: If it is to be, it’s up to me

•

COLLABORATION: Leverage collective genius

•

INNOVATION: Seek, imagine, create, delight

•

QUALITY: What we do, we do well

2.3.2: MISSION •

To Refresh the World... In body, mind, and spirit

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•

To Inspire Moments of Optimism... Through our brands and our actions

•

To Create Value and Make a Difference... Everywhere we engage.

2.3.3: VISION FOR SUSTAINABLE GROWTH •

PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities.

•

PEOPLE: Being a great place to work where people are inspired to be the best they can be.

•

PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ Desires and needs.

•

PARTNERS: Nurturing a winning network of partners and building mutual loyalty.

•

PLANET: Being a responsible global citizen that makes a difference.

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FIGURE 2: VISION FOR SUSTAINABLE GROWTH

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CHAPTER 3: HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) _______________________________________________ 3.1: 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-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. 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

24

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. “Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban 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. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.

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COBO FOBO CONTRACT PACKAGING

FIGURE 3: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

3.2: MANIFESTO FOR GROWTH 3.2.1: 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.

26

•

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.

3.2.2: VISION FOR SUSTAINABLE GROWTH To provide exceptional strategic leadership in the Coca-Cola India Systemresulting in consumer and customer preference and loyalty, through CocaCola’s commitment to them, and in a highly profitable Coca-Cola Corporate branded beverages system.

3.2.3: 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

27

•

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.

3.2.4: QUALITY POLICY “To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processes…Every time.”

Chief Executive Officer

3.3: ORGANIZATION STRUCTURE OF COCA-COLA IN INDIA

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North) 28 Regional Vice President (Central)

Region Vice President AGM/AOD Unit 1 FIGURE 4: ORGANIZATION STRUCTURE IN COCA-COLA, AGM/AOD INIDA

Unit 2 AGM/AOD Unit 3 AGM/AOD Unit4 Region Finance Region Human Resource Region Customer Service Region External Affairs Region Cold Drink

Region Legal

Region BSG Region Director/Manager Region Capability Management

Region Channel

29

AGM/AOD

Plant Manager

Route to Market

Human Resource Manager

General Sales Manager

Finance Manager

FIGURE 5: ORGANIZATION STRUCTURE IN COCA-COLA, INDIA

3.4: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT IN HCCBPL:

Area Sales Manager

Channel Manager

Sales Executive

Market Develope r

Distributor s And Salesmen

Area Capabilit y Manager

Marketin g

Sales Trainers

Key Accounts

30

FIGURE 6: ORGANIZATION STRUCTURE OF THE SALES DEPARTMENT

3.5: 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.

31

Manufacturing Plant, Bidadi

Sales and Distribution Operations

Distributors

Outlets

Outlets FIGURE 7: CHAIN FOLLOWED FROM MANUFACTURE TO DISTRIBUTION

3.6: MANUFACTURING PROCESS AT HCCBPL

32

FIGURE 8: 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 situated at Pune, 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.

33

•

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. 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.

3.7: BUSINESS PLAN MODEL AT HCCBPL

Coca-Cola India division, Gurgaon

Regional Bottlers COBO/FOBO

Manufactures Concentrate, Beverage base and Syrup

Manufactures finished Bottles/Cans/Fountain Syrup

Customers

Consumers FIGURE 9: BUSINESS PLAN MODEL

3.8: DISTRIBUTION NETWORK 34

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.

3.8.1: DISTRIBUTION ROUTES The various routes formulated by HCCBPL for distribution of products are as follows:

•

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.

35

•

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.

3.8.2: 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)

36

•

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.

3.8.3:

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.

3.9: SWOT ANALYSIS OF HCCBPL

37

3.9.1: STRENGTHS •

DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet 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.

•

STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white CocaCola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated

that

the

Coca-Cola

brand

was

worth

$70.45billion.

(http://news.bbc.co.uk/1/hi/business/4706275.stm)

•

LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

3.9.2: WEAKNESSES

38

•

LOW EXPORT LEVELS: The brands produced by the company are brands produced world wide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a nongovernmental organization in New Delhi, said aerated waters produced

by

multinational

soft giants

drinks

manufacturers

PepsiCo

and

in

Coca-Cola,

India,

including

contained

toxins

including lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.

•

SMALL

SCALE

SECTOR

RESERVATIONS

LIMIT

ABILITY

TO

INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

3.9.3: OPPORTUNITIES •

LARGE

DOMESTIC

MARKETS:

The domestic market for the

products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.

39

•

EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.

•

HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.

3.9.4: THREATS •

IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

•

TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is

40

difficult. Therefore, this can limit the growth of the Company and pose problems.

•

SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company’s products.

3.10: 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.

41

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.

•

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.

•

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.

CHAPTER 4: PRODUCTS _______________________________________________ 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:

•

In the Cola Section:

42

•

In the Lemon section:

•

In the Orange section:

•

In the Juice section:

•

In the Soda Water and Bottled Mineral Water section:

43

•

In the Tonic Water section:

4.1: PACKAGING DETAILS •

Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles

44

•

Diet Coke: 330 ml can and 500 ml PET bottle

•

Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack

•

Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

•

Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET bottles

•

Schweppes Mineral Water: 750 ml PET bottles

•

Schweppes Tonic Water: 330 ml can

•

Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET bottles.

45

CHAPTER 5: PROJECT PERCEPTION OF CONSUMERS TOWARDS MINUTE MAID PULPY ORANGE

5.1: OBJECTIVE OF THE STUDY

46

The main objective of this study lies in studying and understanding the consumers’ perception and opinion about the latest product, Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. Perception can be defined as intuitive recognition of a truth, aesthetic quality and the way a person sees or understands. In the case of Minute Maid Pulpy Orange, one could define perception as the levels of awareness and acceptance among people towards the product.

5.2: ABOUT THE PRODUCT Minute Maid is a 62-year-old brand and entered the Coca-Cola fold in 1960. The history of the ‘Minute Maid’ brand goes as far back as 1945 when the Florida Foods Corporation developed an orange juice powder. The company developed a process that eliminated 80% of the water content in orange juice to form a frozen concentrates which, when reconstituted created orange juice. The product was thereby branded ‘Minute Maid’, a name signifying the convenience and the ease of preparation i.e. the drink could be prepared in just about a minute. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. Over the years, through innovation and unmatched consumer experience provided in over 60 countries, Minute Maid brand has clearly become one of the world's largest juice and juice drink brands. Minute Maid Pulpy Orange in India was launched in Hyderabad on the 19th Of February. The product is aimed to further extend the leadership of Coca-Cola in India in the juice drink category. There are over a 100 products in the Minute Maid banner that include fruit drinks in various flavors and fortified varieties. Coca-Cola is exploring its options to introduce some of these in India in future after tweaking them to suit local tastes and conditions. The product is made available in two packs; one being a 400 ML bottle priced at Rs. 25 and the other being a 1 LT bottle priced at Rs. 60. The exclusivity of the product lies in the presence of real orange pulp in the drink contributing to its unique and refreshing taste.

47

Currently, the pulp is imported from Florida and the juice from Brazil, the largest producers of Orange in the world. The product is bottled at the bottling unit of Coca-Cola in Chittoor, Andhra Pradesh. In the long run, the company would be sourcing these components locally by teaming up with farmers. The product is made available in groceries, large format stores, eating and drinking outlets, convenience stores etc. Mr. John Ustas, CEO of HCCBPL, said that Minute Maid Pulpy Orange would be retailed across 25,000 outlets in the three Southern States of Karnataka, Andhra Pradesh and Tamil Nadu in the months of March and April.

5.3: METHODOLOGY As mentioned earlier in the report, Andhra Pradesh, Tamil Nadu and Karnataka, were a part of the phased launch of the product in the market. A consumer sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give the product the required marketing push and to recognize the prospective consumers and their opinion in order to develop and market the product in a better way in the near future. The methodology used in studying and understanding the perceived views of consumers towards the product was ‘SAMPLING’. Sampling, by definition, is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of statistical inference. Each observation measures one or more properties of an observable entity enumerated to distinguish objects or individuals. In the case of Minute Maid Pulpy Orange, the properties taken into concern are, the opinion of people regarding the product, taking into consideration their age and gender. The process of Sampling in the city of Bangalore was conducted in the chain of Food World outlets all over the city. A modern trade outlet like Food World

48

was chosen because of facts like; the number of Food World outlets is high and the number of walk ins at each outlet was comparatively high as compared to any other stores or any other modern trade outlets. In recent years,

consumers

have

preferred

shopping

for

grocery

and

other

necessaries at super markets due to reasons like, location of the store, shopping at leisure and convenience, spacious stores, availability of a wide array of products, prices offered and the quality of the products. Food World has been existent in the city for a very long time now and it is an outlet which satisfies all the above conditions and keeping that in mind, it was chosen.

5.4: PROCEDURE The students appointed as summer trainees by the organization were assigned to carry out the process of sampling. Each trainee was allotted different outlets on different days and a specific number of cases containing 24 bottles of 400 ml each were given to them for the purpose. A standardized procedure was to be followed by the trainees to carry out the work, in order to achieve uniformity in the process, i.e. as follows: •

Talk to the store Manager in the respective store and attain chiller space in order to chill the bottles as it was necessitated that the drinks be served chill to the consumers and chill the bottles for about two hours.

•

When the consumer entered or exited the store, the trainee had to stop the consumer and tell the consumers few facts about the product i.e. that it was the latest product introduced by Coca-Cola, that it was an orange drink with real orange pulp in it and that it was to be had chilled and shaken well before use.

49

•

Then the bottles were to be shaken well, opened and given to the consumer to taste and once they sipped the drink, the consumer would be requested to give an oral opinion about the product.

•

After this, in order to make a report, the approximate age of the consumer, gender and their opinion was to be made note of.

5.5: FINDINGS 5.5.1: GRAPH 1 This graph depicts the total number of consumers divided on the basis of the age group they belong to. The age of consumers included in the sampling activity ranged from 5 years to 75 years. Accordingly the age groups 5 to 15, 15 to 25, 25 to 35, 35 to 45, 45 to 55, 55 to 65 and 65 to 75 have been formulated. There is not set limit for the age of the consumers mainly because ‘Minute Maid Pulpy Orange’ is a fruit drink and it can be consumed by people across different age groups with no restrictions being laid and consumers of all ages enter food world on a given day, either individually and in the case of children, with their parents. The consumers who were sampled with were between 5 years and 75 years of age. The approximate age of the consumers was to be guessed and noted down. Around 50% of consumers fall in the 25 years to 35 years and 35 years to 45 years age groups and the other 50% is distributed among the other age groups.

50

Total No. of Consumers based on Age Group

7%

6%

8%

10%

13%

29%

27%

5 to 15

15 to 25

25 to 35

35 to 45

45 to 55

55 to 65

65 to 75

GRAPH 1: TOTAL NUMBER OF CONSUMERS BASED ON AGE GROUP

5.5.2: GRAPH 2

51

This graph makes a distinction between the number of males and number of females with whom sampling was conducted. The percentage is almost the same in both categories, but the number of females i.e. 365 is a little more than the number of males i.e. 331, due to the fact that, most of the household shopping is done by

No. of Consumers based on Gender

52%

Male

48%

Female

women rather than by men. GRAPH 2: TOTAL NUMBER OF CONSUMERS BASED ON GENDER

5.5.3: GRAPH 3

52

The following graph denotes the feedback of consumers irrespective of the age group they belong to or their gender. This is an overall perception of the consumers towards ‘Minute Maid Pulpy Orange’.

Opinion of people on Minute Maid Pulpy Orange

15%

11%

66%

8%

Liked

Average

Mix Reaction

Disliked

GRAPH 3: GENERAL REACTION OF CONSUMERS ABOUT MMPO

From the above graph, it can be seen that, more than half the people who tasted the product liked the product, i.e. they gave positive feedback about the product and 15% of the consumers did not like the product. Out of the remaining 19% of consumers, 11% people came up with mixed reactions i.e. they had reasons both to like and dislike the product and a small chunk of 8% of the total consumers sampled with, said they did not like the drink too much, neither did they love the drink.

5.5.4: GRAPH 4 53

The following graph denotes the perception of consumers on the basis of the age group they belong to. This kind of a classification becomes necessary, because consumers of different age groups have different tastes and moreover, the ages of consumers in the sample range from 5 years all the way to 75 years.

Feedback of Consumers about MMPO 90

87

80

76 72

69

70

58

% of Consumers

60 50

40

40 40

31 30

22 17

20 10

9 0

4

30 24 18

16 7

7

8

12 88

12

1010 5

0

0

5 to 15

15 to 25

25 to 35

35 to 45

45 to 55

55 to 65

65 to 75

Age Group Liked

Average

Mix Reaction

Disliked

GRAPH 4: REACTION ANALYSED ON BASIS OF AGE GROUP

From the above graph, it is evident that, across all age groups, a major portion of consumers liked the product. Further opinions received from different age groups could be compared and analysed as follows: •

Ranging from ages 5 to 55, it can be noticed that, in every age group, more than 50% of the consumers have liked the product.

54

•

In the age group of 5 years to 15 years, 87% of the consumers have liked the products. The main reason behind this is children are fond of juices and sweet substances. They crave to have anything that is cold and the product when sampled, was made sure was cold and the remaining 13% is divided between average and disliked. There were no consumers who gave mixed reactions. This could be due to the reason that children cannot come up with good enough reasons as to why they like or dislike a product. They just give their opinion.

•

In age groups 15 years to 25 years, 25 years to 35 years and 35 years to 45 years and 45 years to 55 years, the reactions were almost the same. This age group mostly consisted of college going students, working people and house wives. The percentage of consumers who liked the product ranged from 60 to 70%, so it could be said that, around 3 quarters of consumers belonging to those age groups liked the products. The main reasons for this could be that the most consumers belonging to these age groups are health conscious and Orange juice is considered to be one of the most nutritious and healthy juices. Almost 96% of the house wives who were spoken to liked the product. House wives are home managers and they make decisions when it comes to daily consumables and they wanted to buy the products especially because they wanted their children and the rest of their family to have it as it was safe and healthy.

•

Consumers belonging to age groups 55 years to 65 years and 65 years to 75 years, almost have the same perception about the product. More than 50% of the consumers jointly fell in Disliked, Average and Mixed reaction categories mainly because consumers belonging to the age group of 55 to 75 years are diabetics and they do not intake or they are not allowed to intake excessive quantities of sugar; Minute Maid Pulpy Orange being a fruit juice and have added sugar in it was a big no to them. Some of them were even apprehensive about the Coca-Cola brand name attached to the

55

product; according to them Coca-Cola makes only carbonated soft drinks.

5.5.5: GRAPH 5 The following graph is a representation of the comparison and analysis of the feedback given by the consumers based on the gender they belong to. This kind of an analysis is important due to the fact that males and females have different tastes, likes and dislikes especially when it comes to choice of foods and beverages.

Feedback on basis of Gender

70

60

% of Consumers

50

40

30

20

10

67

65

9

10

7

13

14

15

0

Liked

Average

Mix Reaction

Disliked

Opinion Male

Female

GRAPH 5: REACTION ANALYSED ON BASIS OF GENDER

On analysis of the above graph, it can be noted that, the gender of the consumer has not made an impact on the reaction obtained from the consumers. Males and females have shown the same kind of reaction towards the product. About 70% of the both males and females liked the product. This may be due to the fact that Orange juice is a universal favorite and people across the world, across both genders love having orange juice.

56

Around 20% of both males and females gave an average rating to the products and the rest were confused.

5.6: ADDITIONAL DETAILS The reasons given by consumers for having liked the product were: •

It tastes like fresh orange juice.

•

It is a good thirst quencher, especially in the summer season.

•

It is not bitter like other readymade juice products that are available in the market.

•

It has got real pulp in it and when one can feel the pulp and this makes the drink tastier.

•

It is a non-carbonated drink.

•

It is as sweet as natural oranges that one buys in the market.

•

Due to the natural orange pulp, the juice is healthier.

•

It is a ready-to-drink fruit juice.

The reasons given by consumers for having disliked the product were: •

It is too sweet.

•

It is too watery i.e. the consistency is not good.

•

Fresh fruit juice is preferable.

57

•

Tropicana is preferred because that is not as sweet as Minute Maid Pulpy Orange.

•

It is too bitter.

•

It is not as sweet as natural orange juice.

•

It was a product of the Coca-Cola Company and ever since the controversy, consumers are a little apprehensive about the products of that company.

•

Preferred water to drinking juice.

•

It is not exactly a drink for adults; the taste is more to suit children rather than adults.

•

It tastes more like Rasna/Tang.

The above points under categories liked and disliked are contradictory to each other. Both categories have few same points like the bitterness and the sweetness of the juice. This contradiction arises due to the following reasons: •

Consumers belonged to different age groups ranging from as young as 5 years all the way to 75 years of age.

•

Consumers have different likes and dislikes.

•

Consumers have different tastes.

•

Level of health consciousness is different among different consumers.

58

5.7: SUGGESTIONS Taking the above analysis into consideration, the following points can be regarded for further marketing of the product: •

Advertisements should target the entire family, mainly because it has been observed that irrespective of age and gender, more than 75% of the people have liked the product and look forward to buy it again. Advertisements should highlight the main features of the product that is the existence of pulp (which is already made prominent in Advertisements); it should lay emphasis on the health and nutrition value of the product and also on the fact that it is as good as fresh fruit juice.

•

Due to the current prices, an eyebrow raiser for some, the product could be sold in packs of 2 or more and there could be a price reduction.

•

At Modern Trade Outlets, where shoppers buy in bulk, Minute Maid Pulpy Orange could be given away free, if the customer buys goods worth more than a certain price line. This strategy is already being carried out at the Food World outlets. It could be introduced even at Fab Mall, Subhiksha, Spencer’s Daily, Big Bazaar etc.

•

New flavors can be introduced into the market as early as possible because around 30% of the consumers were eager to know if the drink would come in more flavors and another 10% of the consumers

59

did not like Orange juice so they were anticipating the probable launch of other flavors. •

Smaller packs of Minute Maid Pulpy Orange like tetra packs of 200300 ml can be introduced as, when a customer wants a small amount of the drink just to quench his thirst for that moment, he would not want to buy a bottle containing 400 ml or 1litre of the juice. Therefore, smaller packs of the product do come in handy.

CHAPTER 6: CONCLUSION _______________________________________________ The Sampling activity was a good first step into the area of Marketing and Sales. It gave good amount of exposure mainly because after being trained, trainees were given an opportunity to carry out the process ourselves. It helped in developing a considerable amount of convincing skills, because, it took a lot of it to convince the store managers to give us cooler space to cool the product for 2 hours and even more to convince the customers into tasting the product and to get reviews from them. A good understanding of the market was accomplished as around 700 people were spoken to and that group consisted of a variety of customers. This even helped in the polishing of communication skills, a must-have to survive and make it big in the present world. It even gave a good understanding of behavior of customers when placed in different situations. 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. As all the points in the above mentioned paragraph, are the must-have skills for anyone in the field of Marketing and Sales, the training period was a good experience and a good stepping stone into the real business world. As a future line of research, the Marketing and Sales Department at HCCBPL could offer projects like:

60

•

Analysis Impact of advertisements on the Sales of a particular product

•

Analysis of major trends in the Indian Non-Alcoholic Beverage market

•

Analysis of changing trends in the market for Coca-Cola products

•

Formulation of Market penetration strategies

APPENDIX

Total number of Consumers sampled and their opinion Age Groups

5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75

M F T L A M R D

Gender

Opinion Liked

Mix Reaction

M

F

T

Average

M

F

T

M

F

26

19

45

23

16

39

2

2

4

0

0

42

28

35

18

2

8

56

78

6

8

6

10

93

96

65

70

10

6

5 1 4 1 6

4

108

53 13 4 13 5

3

86

70 19 4 18 9

6

10

36

54

90

21

31

52

5

4

9

5

4

18

40

58

8

15

23

0

3

3

6

30 33 1

20 36 5

50 69 6

12 22 0

8 23 6

20 45 6

4 3 0

2 2 7

6 5 7

5

T

M

32

F

Disliked

T

M

F

1

1

2

0

0

0

18

12

30

12

10

22

5

15

20

12

9 1 8

4

10

14

4 4 8

9 8 0

9 4 9

6 5 4

15 10 3

0 1 2 1 6 1 6

T

Key Male Female Total Liked Average Mixed Reaction Disliked

61

Table for Graph 1 Age Total No. of Group Consumers 5 to 15 45 15 to 25 70 25 to 35 194 35 to 45 189 45 to 55 90 55 to 65 58 65 to 75 50 Table for Graph 2 Male 331 Female 365

Table for Graph 3 45 Liked 6 Average 57 Mix Reaction 80 10 Disliked 3

Age Group 5 to 15 15 to 25 25 to 35 35 to 45 45 to 55 55 to 65 65 to 75

Table for Graph 4 (In Numbers) Liked Average Mix Reaction 39 4 0 53 5 12 134 14 16 135 16 16 52 9 9 23 3 18 20 6 9

Disliked 2 0 30 22 20 14 15

62

Table for Graph 4 (Rounded Up % ages used in Graph) Age Group Liked Average Mix Reaction Disliked 5 to 15 87 9 0 4 15 to 25 76 7 17 0 25 to 35 69 7 8 16 35 to 45 72 8 8 12 45 to 55 58 10 10 22 55 to 65 40 5 31 24 65 to 75 40 12 18 30

Gende r Male Femal e

Table for Graph 5 (In Numbers) Like Averag Mix Dislike d e Reaction d 220 30 32 49 236

27

48

54

Table for Graph 5 (Rounded Up %ages) Gende Like Averag Mix Dislike r d e Reaction d 67 9 10 14 Male Femal 65 7 13 15 e

63

DATA SOURCES: _______________________________________________ •

http://www.cybernoon.com

•

http://news.bbc.co.uk

•

http://www.thecoca-colacompany.com

•

http://www.coca-cola.com

•

http://www.ko.com

•

http://www.hoovers.com

•

http://www.google.com

•

http://www.wikipedia.org

•

Monthly circular for the month of March, Hindustan Coca-Cola Beverage Private Limited

64

65