HRM 2
HRM 2
HRM 2
HCCB – a company started in 1997 with the simple aim of making beverages for
the India of the 21st century. Two decades later, we are one of India’s top FMCG
companies. Only because fellow Indians, who have faith in the quality and purity
of our products, pick our beverages, 477 times per second.
What we do?
Manufacturing
Our 18 factories, spread across India, manufacture the beverages that India
wants. And if it is about India, we better make the best. With stringent
processes, world-class machines, state-of-the-art equipment, and the best
packaging materials, we make 55 different beverage products in multiple
categories.
Packaging
At a very basic and functional level, they help keep your favourite
beverages, safe, hygienic and consistent. At their most evolved, they can be
ambassadors of goodwill and messengers of change. Packages are an
integral part of the HCCB story.
Distribution
HCCB – where warehousing and logistics integrates seamlessly with
manufacturing and planning. Because when it is about serving 442
beverages per second, across 493 districts, through 20 lakh retailers, supply
chain and distribution capability holds the mirror on us.
COMPANY HISTORY
1886-1892
It was 1886, like many people who change history, John Pemberton, an Atlanta
pharmacist, was inspired by simple curiosity. One afternoon, he stirred up a
fragrant, caramel-coloured liquid and, when it was done, he carried it a few doors
down to Jacobs' Pharmacy. There, the mixture was combined with carbonated
water and sampled by customers who all agreed this new drink was something
special.
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.
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.
Two young attorneys from Chattanooga, Tennessee believed they could build
business around bottling Coca-Cola. In a meeting with Candler, Benjamin F.
Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola
across most of the United States (specifically excluding Vicksburg) for the sum of
one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture .
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.
Bottlers worried that the straight-sided bottle for Coca-Cola 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 in 1915 and was
introduced in 1916. The contour bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office. Today, it's one of the most
recognized icons in the world - even in the dark!
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the
U.S. Their ideas and zeal fuelled steady growth. Six-bottle cartons were a huge hit
after their 1923 introduction. 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.
Led by long-time Company leader 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, Peru, Spain, Australia and South Africa. By the time World
War II began, Coca- Cola was being bottled in 44 countries.
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.
Following Fanta in the 1950s, Sprite, Minute Maid, 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 Dasani in
the 1990s. Today hundreds of other brands are offered to meet consumer
preferences in local markets around the world.
As technology lead to a global economy, the retailers who sold Coca-Cola 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.
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. And as the century closed,
more than $1.5 billion was committed to new bottling facilities in Africa .
21st Century ..
.
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek brands
that honour local.
COMPANY PROFILE
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather
than reveals its formula to the Government and reduces 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 26 ^ (th)
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.
Hindustan Coca-Cola Beverages Private Limited, unit was formally inaugurated on
12 February, 2000 by Chief Minister Mr. S. M. Krishna.
The Unit is spread over an area of 15 acres. The company follows the policies of
The Coca-Cola Company, Atlanta and also by the Indian headquarters, Gurgoan.
The unit is spread over an area of 15 acres. This is the State of the art bottling
facility with four lines one of which is a pet line.
"Think local, act local", is the mantra that Coca-Cola follows, with punch lines like
"Life ho to aisi" for Urban India and "ThandaMatlab 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.
HCCBPL is large beverage bottling company, responsible for the manufacture,
package, sale and distribution of beverage under the trademark the Coca-Cola
Company, USA, 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.
HCCBPL's Product Portfolio has an extensive range to choose from:
Sparkling Beverages Coca-Cola, Diet Coke, Thums Up, Sprite, Fanta, Limca, Kinley
Soda, Schweppes Tonic Water.
Still Beverages - Maaza, Minute Maid Pulpy Orange, Minute MaidNimbu Fresh,
Minute Maid 100% Juices (Apple, Grapes, Orange, and Mixed Fruit). Minute Maid
range of fruit flavoured drinks.
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.
Vision:
✔To make every Indian's first choice of refreshment available within easy reach.
Mission:
In Soda section
1. Coca Cola,
2. Thumbs Up,
3. Sprite,
4. Limca,
5. Fanta
6. Maaza
7. Kinley
The Coca-Cola Company offers nearly 400 brands in over 200 countries,
besides its namesake Coca-Cola beverage. Tab was Coca-Cola's first attempt to
develop a diet soft drink, using saccharin as a sugar substitute. Introduced in
1963, the product is still sold today, however its sales have dwindled since the
introduction of Diet Coke. The Coca-Cola Company also produces a number of
other soft drinks including Fanta and Sprite. Fanta's origins date back to World
War Il when Max Keith, who managed Coca-Cola's operations in Germany
during the war, wanted to make money from Nazi Germany but did not want
the negative publicity. Keith resorted to producing a different soft drink, Fanta,
which proved to be a hit, and when Coke took over again after the war, it
adopted the Fanta brand as well. The German Fanta Klare Zitrone ("Clear
Lemon Fanta") variety became Sprite, another of the company's bestsellers
and its response to 7 Up. During the 1990s, the company responded to the
growing consumer interest in healthy beverages by introducing several new
non-carbonated beverage brands. These included Minute Maid Juices to Go,
PowerAde sports beverage, flavored tea Nestea (in a joint venture with
Nestle), Fruitopia fruit drink and Dasani water, among others. In2001, Minute
Maid division launched the Simply Orange brand of juices including orange
juice.
Following are the mission, vision statements and company's core values taken
from the company's official website:-
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 "Roadmap" for winning together with our
bottling partners.
1. Mission
Our Roadmap starts with our mission, which is enduring. It declares our
purpose as company and serves as the standard against which we weigh our
actions and decisions.
A. To refresh the world
B. To inspire moments of optimism and happiness
C. To create value and make a difference.
2. Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect
of our business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth.
a. People: Be a great place to work where people are inspired to be the best
they can be.
b. Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
c. Partners: Nurture a winning network of customers and suppliers, together
we create mutual, enduring value.
d. Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
e. Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.
f. Productivity: Be a highly effective, lean and fast-moving organization
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.
a. Leadership: The courage to shape a better future
b. Collaboration: Leverage collective genius
Infrastructure
Most of the water borne diseases emanates from unclean water, poor and
obsolete technology used to purify the water, unhygienic condition and most
importantly the source of water and chances of contamination from
surrounding industries and locality.
Treated drinking water coming out of EBPL ensures safe, clean, potable water
for human consumption, anytime and every time.
A bottle of water is treated through State-of-the-Art technology comprising of
Dual Media Filtration, Activated Carbon Filtration, Reverse Osmosis (R.O),
Micron Filtration and through U.V treatment and Ozonisation.
MARKET ANALYSIS
The biggest company in the soft drink industry, Coca Cola enjoys the largest
market share. This company controls about 59% of the world market.
In 2002, the company grew their carbonated soft-drink business by nearly 250
million unit cases and generated record volumes. Because carbonated soft
drinks are the largest growth segment within the nonalcoholic ready-to-drink
beverage category measured by volume, that is why they are focusing more on
this and they are continually increasing the pace because they know that
accelerating this pace is crucial to their future success.
In Asian population, which is the satisfied customer of Coca Cola, is
approximately 4.2 billion and the average consumer enjoys close to four
servings of our products each month. Through an intense focus on Coca-Cola,
innovation and new beverages, the company has achieved volume growth of
22 percent in 2009.
So the company is emphasizing more in this area and is trying to develop a
strategy, which can increase the growth of the consumption of Coca Cola by
the people of Asia. Among the countries of Asia, Japan has the highest
percentage, which is about 29%. Among others, Pakistan, India and
Bangladesh are those countries where the average consumption is increasing
day by day.
a) External Factors
i) Customers:
• Customer Database
• Getting new potential customers, side by side retaining old ones.
• Giving customers more than just a soft drink.
• Brand loyalty.
Internal Factors:
i) Company:
The Coca Cola Company has always focused on portraying a simple yet strong
brand image. Their motto was:
Know the most recognized word on the planet after "OK"!
Coca-Cola
The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is
a world leader in convenient foods and beverages, with revenues of about $27
billion and over 143,000 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.
SWOT ANALYSIS
a) Strengths:
Coca-Cola has been holding a large part of world culture for a very long time.
Coca cola has focused on brand image and brand loyalty along with providing
supreme taste and quality. The Coca-Cola image is displayed on T-shirts, hats,
and collectible memorabilia. This extremely recognizable branding is one of
Coca-Cola's greatest strengths.
"Enjoyed more than 685 million times a day around the world Coca-Cola
stands as a simple, yet powerful symbol of quality and enjoyment" (Allen,
1995).
Additionally, Coca-Cola's bottling system is one of their greatest strengths. It
allows them to conduct business on a global scale while at the same time
maintain a local approach. The bottling companies are locally owned and
operated by independent business people who are authorized to sell products
of the Coca-Cola Company. Because Coke does not have outright ownership of
its bottling network, its main source of revenue is the sale of concentrate to its
bottlers.
Consumers basically drink what they get.
They believe on "WHATS COLD GETS SOLD"
Consumer's availability in brands is basically works like:
Push availability.
Pull consumer's demand.
For this reason Coca-Cola Intl has provided their coolers and freezers in the
market. They have maximum number of coolers and freezers in the market.
They provide this infrastructure free of cost just to provide child coke to their
customer, which they want to be purchase.
b) Weaknesses:
Coca-Cola contains caffeine and caramel which can adverse effects on the
teeth (if prolonged) which is an issue for health care. It also has got sugar by
which continuous drinking of Coca-Cola may cause health problems. Being
addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola
daily has an effect on your body after few years.
Another weakness which may be considered regionally is its sugar content.
Pepsi Co. makes its sales only because Pepsi is so far, having a larger market
share only because it is more sugary and Asian people focus on sugary drinks.
c) Opportunities:
d) Threats:
The main threat is Price. A small increase in price, let's say just 1 rupee will
have a drastic effect on sales. Only because people will go for the next
available substitute i.e. Pepsi so price change is a major factor in affecting
Sales of coca cola and in marginal profits. Coca Cola can face major losses if it
goes for a sudden increase or decrease in price.
Keys to Success
Coca Cola marketing team focuses not only on the results as well as the tasks
assigned.
They firmly believe if you want to establish a clear image in the minds of
consumers, you first need a clear image in your own mind.
Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on
neutralizing the competition.
Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl
launched Diet Coke.
The Coca Cola marketing team maintained their focus strongly on the product
itself. When they changed bottle shape, many people started buying bottles
instead of the drink itself
The Coca Cola team learnt from everything. Even if a customer said "no", they
focused on "why" did he say no and then found out ways on "how" to solve
that issue.
Formula for positioning success:
✓ Define
✓ Over deliver
✓Claim
✓ Succeed
They specified the criteria for each product offered because if you don't
specify the criteria for choosing, consumers will develop their own, which is
dangerous.
Critical Issues
Coca-Cola has been criticized for alleged adverse health effects, its aggressive
marketing to children exploitative labor practices, high levels of pesticides in
its products, building plants in Nazi Germany which employed slave labor,
environmental destruction, monopolistic business practices, and hiring
paramilitary units to murder trade union leaders. In October 2009, in an effort
to improve their image, Coca-Cola partnered with the American Academy of
Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle
education; the partnership spawned sharp criticism of both Coca-Cola and the
AAFP by physicians and nutritionists.
MARKETING OBJECTIVES
1. To increase volume
Expand our share of worldwide nonalcoholic ready to drink beverages sale
2. Maximize our long-term cash flows
3. Create economic value added by improving economic profit.
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.
DECISION MAKING
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
Create economic value added by improving economic profit.
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.
RESEARCH DESIGN
This report attempts to study the marketing mix keeping in mind the current
market situation. Besides, this report also studies the customer feedback
about the COCA COLA. Thus it can be said that there are two broad goals of
the research i.e. TO STUDY THECONSUMERS PREFERENCE FOR COCA COLA as a
whole and other to CREATE A TOP OF MIND AWARENESS OF COCA COLA. The
research work was done through the collection of primary data and secondary
data by a common questionnaire through the market survey technique. Thus;
based on our research, we have made some conclusions and suggestions to
make the performance of COCA COLA amongst all players better.
SCOPE OF STUDY
1. To the Researcher:
2. It gave a chance to use the conceptual knowledge in actual
environment and prepares the researcher to use the knowledge for
better in his future endeavors.
ANALYSIS
CONCLUSION
BIBLIOGRAPHY
Books: