A

Report on

By

A1 Group

MBA- I
A1 GROUP ME MBERS:

NAME GRADE

1. V aibhav Sonavale A

2. Dhanashree A mbekar A

3. A mar Makhija A

4. Aakanksha Chaturvedi A

5. Sonali Bangar A

6. Omesh Girap A

7. Prasad Gadakh A

8. A bhishek Y adav A

9. Nikhil Avinashe A

10. Ramziya A

11. Atorud A

12. Harshal Sakhare A

2
13. Aniket Gaikwad A

15. K ristina Ganchenko A

ACK NOWLEDGEME NT

We are grateful towards Prof. Pandit Mali, Director of Indira Institute of Management,
Pune for giving us an opportunity to study and research the macro as well as micro
approach of FMCG sector.

We also thank Dr. Shriram Nerlekar, Indira Institute of Management, for conducting
Abhivyakti for us which has and would in future help us in understanding various sectors

of the market.

If words are considered to be signs of gratitude then these words convey the very same
our sincere gratitude to Coca-Cola for providing us with the required information.

We thank our faculty mentor Prof. Santosh Phullewar, for all his help and support.

A special mention to the persistent and undying efforts put in by our student mentor

Mr. Prashant Chaudhari who trusted us with this project and sailed us through
successfully.

We are grateful to all faculty members of IIMP and our seniors who have helped us in

the successful completion of this project.

3
We take deep pride in recognizing all the contributors who have been a constant source

of knowledge and help.

Regards,

Group A1

INDEX
1. MACROANALYSIS Page No.
1.1. History of FMCG sector 6

1.2. Market Structure 9

1.3. Recent Trends and T echnology

13

1.4. Mergers and Acquisitions 17

1.5. Government Policies 18

1.6. Related T erms 21

2. MICROANALYSIS
2.1. Introduction of Coca-Cola 23

2.2. Current Position in Market 26

2.3. SWOT Analysis 27

4
2.4. Financial Analysis 30

2.5. 4 P„ s of Marketing 33

2.6. HR Policies 41

2.7. Organizational structure 45

2.8. Differential strategies 47

2.9. CSR Initiatives 48

2.10. Achievement and Awards 51

2.11. Career opportunities 52

2.12. Conclusion 53

2.13 Bibliography 53

5
MACRO

ANALYSIS
OF

FMCG SECTOR

6
1.1 INTRODUCTION

Fast Moving C onsumer Goods:

 The term FMCG refers to those retail goods that are generally replaced or fully
used up over a short period of days, weeks, or months, and within one year. This

contrasts with durable goods or major appliances such as kitchen appliances,

which are generally replaced over a period of several years.

 FMCG have a short shelf life, either as a result of high consumer demand or

because the product deteriorates rapidly. Some FMCG such as meat, fruits and
vegetables, dairy products and baked goods – are highly perishable. Other goods

such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products
have high turnover rates.

 Fast Moving Consumer Goods (FMCG) are products that are sold quickly at

relatively low cost. It includes non-durable goods such as soft drinks, toiletries,
grocery items etc. Though the absolute profit made on FMCG products is

relatively small, they generally sell in large quantities, so the cumulative profit on
such products can be large.

The following are the typical characteristics of FMCGs.

 From the consumers' perspective:

o Frequent purchase

o L ow involvement (little or no effort to choose the item -- products with

strong brand loyalty are exceptions to this rule)

o value for money

 From the marketers' angle:

7
 o High volumes

o Extensive distribution networks

o High stock turnover

HISTORY OF FMCG SECTOR

 Lackluster Stage:

During the time period of 1950 – 1970 the FMCG companies in India focused
more on the upper classes and also positioned their products for the urban

consumers. Hardly any emphasis was given to the rural market.

 Rural Sensitization Stage:

During the 1970 – 1990 time periods, the FMCG sector realized the potential of

the sector in India with the challenges that Nirma and Cavinkare put forth to
major multinational companies in India like HLL (now HUL) and Proctor & Gamble

(P&G).

When Nirma was launched by a local entrepreneur from Gujrat, Mr. K arsanbhai
Patel, companies like HUL were largely dismissive of it. But with its affordable

price (target market being the low income group population, which dominates
India) the product was a huge success. Its entry changed the whole FMCG sector

in India. Nirma paid focus on „value for money‟ and laid a path for other to follow.
Also, during the early 1980‟s Cavinkare with its introduction of shampoos in

sachets, which were affordable compared to major MNCs, Mr. C. K. Ranganathan

took on P&G an HLL. This was the time when these companies realized the huge

potential of the rural market in FMCG in India.

 “L iberalization boom and stabilization” Stage:

8
 With the liberalization came the choices the Indian urban consumers were

looking for. Liberalization paved way for many foreign companies to come in
India and also the market saw a high number of domestic choices. With standard

of living increasing in the urban markets and the huge potential of the rural
market, companies started investing more and more in India.

The companies focused more on increasing their reach and towards up trading
the consumer to their premium offerings. With the increased number of choices

the affluent consumer, who always had the money, started splurging. This period
also saw companies using each others network to increase their reach (P&G -

Marico). The Sales boom was observed for first 4 to 5 years and then it stabilized.

 Drop Stage:
During the years 2000 – 2005, the FMCG market had become very crowded. Most
of the companies were finding it difficult to sell their products. The economic

conditions in rural India didn‟ t help either. Buyers were down trading to reduce
their monthly grocery expenditure. The industry grew at just under 3%. Despite

the slowdown, many categories saw rise in sales, for example, atta and salt. The
mid range and entry level variants of products saw growth in their sales.

Thus, prompting most FMCG marketers to offer variants at lower price points.
The declining sales of the FMCG sector could also be explained by the fact that,
consumers had started spending more on consumer durables during the same
period as it saw a huge influx of products in the market.

 Boom R evisited:
2006 saw a sharp rebound in FMCG sales. With a lot of goods like mobiles, for
example, becoming cheaper leading to availability of disposable income with the

consumer was one of the major factors driving sales.

The growing number of organized retail outlets hitting the cities saw consumers
shifting from their trips to the local mom and pop stores to modern trade

9
 (hypermarkets). Product offers that such stores provided, helped drive the

consumer spending.
Also, consumers started purchasing in bulk, largely due to such offers being

available. The rural sector also saw a rise in their spending power, prompting
companies to shift their focus towards them.

1.2 MARKET STRUCTURE:

According to a FICCI-Techno park report, India's FMCG sector is poised to reach US$ 43

billion by 2013 and US$ 74 billion by 2018. The report states that implementation of the
proposed goods and services tax (GST) and the opening of foreign direct investment

(FDI) are expected to fuel growth further and raise the industry's size to US$ 47 billion
by 2013 and US$ 95 billion by 2018.

According to figures released by market researcher Nielsen, demand for personal care

products grew faster in rural areas than urban areas during the period January-May
2010. In shampoos, rural demand grew by 10.7 per cent in value terms, while in urban

markets, it rose by 6.8 per cent. Similarly, toothpaste sales grew by 9.1 per cent in rural
India and by 4.4 per cent in urban markets.

10
Furthermore, according to data from market researcher Nielsen, the FMCG industry

posted a 14 per cent sales growth year-on-year in A pril 2010, the highest in eight
months. Some of the categories and major companies in the sector are as follows:

 Personal Wash: (Soaps, Detergents) Major companies being HUL, P&G, Godrej
 Personal Care: (Shampoos, Creams) Major companies being HUL, P&G, Marico

 Health Care: (OTCs, Oral care products) Major Companies being R eckitt B enckiser,
GSK

 Household Care: (Dish Cleaners, floor cleaners, mosquito repellents) Major

companies being R eckitt B enckiser, HUL

 Confectionary: (Mints, Chocolates) Major Companies in this sector are Cadburys,

Perfetti, ITC

 Packaged Foods: (Biscuits, Potato chips) Major companies being Parle, Brittania,
ITC, Pepsi Co

 Beverages: (Soft Drinks, health Drinks) Major companies being Pepsi Co, Coco
Cola

 Staples: (Atta, Salt, Species) Major companies being ITC, Tata

 Tobacco: (Cigarettes, Chewing tobacco) Major companies being ITC, GPI

11
 (Source: IBEF)

12
Top 5 FMCG companies in the world:

Rank C ompany C ountry Product sectors Net Sales

(Million $)

1 Nestle SA Switzerland Food, Drinks 1,01,823.00

Proctor and United Personal and Household

2 79,029.00
Gamble States Products

3 Japan T obacco Inc Japan Food, Drinks, T obacco 68,323.00

Phillip Morris United

4 Food, Drinks, T obacco 63,640.00
International States

United Personal and Household

5 Unilever Group 59,623.00
Kingdom Products

(Global Powers of the Consumer Products Industry, 2010)

Top 10 FMCG companies in India

Crores

Sales
Rank C ompany Product Sector
Turnover

1 ITC Limited Tobacco, Foods, Personal Care 18,382.24

2 HUL Foods, Personal Care 17,725.33

GCMMF Foods, Confectionary,

3 6711.3
(Amul) Beverages

13
 4 Nestle India Foods, B evereges 5,149.99

5 Asian Paints Paint 4,270.05

6 Brittania Foods 3,416.60

7 Dabur India Personal Care 2,874.60

8 Rei A gro Foods 2,448.23

Cadbury
9 Confectionary 2,045.08
India

10 Marico Personal Care 2,030.85

(Source: Money control)

Top 10 FMCG companies in India

14
15
1.3 RECE NT TRENDS AND TECHNOL OGIES:

1. F ocus on Health
Companies are widening their health food portfolio to cash in on the rich, urban, health

conscious Indian. In recent we have seen flurry of products in this segment. Have a look
of some of them:

1) Sugar free Chywanprash

2) Organic spices/ pulses

3) Multi grain pastas/ Biscuits

4) Processed foods particularly juices

5) Probiotic Ice Creams

6) Butter Lite (Nutralite)

7) Corn Flakes/ Oats

8) L ays (40% less saturated fats) – Snack Smart

9) L ow Calorie Sweetners

2. I mpact of Inflation: The expenditure of FMCG in the consumer's wallet is coming

down year on year. This is leading to low sensitivity with price increases. Almost a
decade back people use to down trade from expensive brands to value for money ones.

But now the trend is changing. Consumer is not switching to cheaper substitutes. Rather
companies have come with lower quantity SKUs and make consumers switch from

higher to lower SKUs and not from premium to popular brands (like Dove to L ux
International). Just to give you an example, Henkel instead of increasing the price of

their Henkwl detergent from Rs. 46 to Rs. 50, they have launched a new SKU of 400gms
for Rs. 40. During the time of inflation, people shift to sachets of their brands. Sales

numbers of FMCG companies are quite robust.

FMCG spend now comprises a smaller share of consumer‟s wallet

16
3. Micro Segmentation/ Niches: It‟s interesting and funny to see that companies
are not leaving any opportunity to micro segment the market. I can foresee that we are

here to see further segments in different categories. Here are some examples:

Age
a) Junior Horlicks
b) Junior Chyawanprash

c) Pepsodent B arbie for Kids/ Colgate Strawberry

Sex
a) Women‟ s Horlicks
b) Male fairness cream

Specialized Household Cleaners

a) Kitchen Cleaner: Mr. Muscle

b) Power Cleaner (Rust): E asy Off Bang

4. L ow value SK Us - Sachetization: Y ou name the category it has a sachet. We all

know that it all started in 1980's with shampoos. Here is a small list of sachets:
4.1) Shampoos

4.2) Butter (Munna Pack)

4.3) Hair Oils (Navratan – Thanda T handa Cool Cool)

4.4) Noodles (Chotu Maggi)

17
4.5) K etchup (Pichko)

4.6) T oothpaste

5. J et Age C onsumer Products: B ecause of changing lifestyles, busy jobs etc

marketers are coming up with Jet A ge consumer products.

Ready to E at
1) Corn Flakes/ Oats
2) Pastas

3) Biscuits
4) Noodles

5) Pizzas
6) Burgers

Ready to Drink
1) E nergy Drinks

2) Non-C ola Drinks (Juices)

Ready to C ook

18
1) Cut V egetables

2) Soups
3) Paranthas/ R otis

4) Snacks

6. Mainstream Penetrated Growth Categories: The high penetrated

categories like Hair Oils, Washing Detergents, Detergent Cakes, Soaps etc are expected

to grow at a healthy rate of 10%, attributed to price increases (not much impact of
inflation - explained in point 2) and low volume growth.

7. Under-penetrated Growth Categories: Barring few main mainstream

categories as mentioned above, there are number of FMCG categories with low
penetration and are expected to grow by 20% during 2008-2009. Have a look of that

list:
1) Men‟ s grooming products

2) Skin care & Cosmetics

3) skin/fairness cream
4) Anti-aging solution
5) Shampoos

6) T oothpaste
7) Hair Colour

8) Deodorants
There lies a huge potential in these categories.

8. L ow Per Capita Consumption: Currently India is nowhere near to other

developing countries in terms of per capita consumption. B e it L aundry, Skin Care,

19
Shampoos or deodorants. Marketers have put in efforts to increase the consumption

frequency or quantum of consumption per occasion. Colgate started the "twice a day"
campaign few years back. Recently Good Night came up with Double power pack. Per

Re1 increase in per capita consumption of a category will lead to growth of more than
100 crores (with a popular base of more than 1 Billion)

9) E volved Product F orms: 20 years back consumers had limited choices to pick
from. T he days of T ortoise Mosquito repellent coils are gone. This is the age of aerosols
with value added functionality

Here is the list:

Dish Wash: Powder to Bar to Liquid

Shaving: Creams to Foams/ Gels

Repellents: Coils to A erosols/ B ody Creams/ Gels

Air Fresheners‟: Sprays to Electric

Toilet Cleaner: Acid to Harpic to In-Cistern .

20
1.4 MERGERS AND ACQUISITIONS:

As part of the assignment in FMCG industry, following mergers have taken place :

 Dabur India L imited acquisition of Balsra Group

Dabur acquired three Balsara companies - B esta Cosmetics, Balsara Hygiene

Products and B alsara Home Products in January 2005 for a consideration of Rs

143 Cr. The three companies were loss making units but with distinct brands. This
conglomerate merger was done primarily for product extension but synergies

were also seen in the distribution network.

The merger has been quite successful considering the fact that all loss making
units were turned around in within 6 months.

 HUL Acquisition of Modern F oods India L imited:

Hindustan L ever Limited bought a 74% stake in Modern Foods Limited, a

company disinvested by the central government as part of the privatization

program.

 In the Foods and FMCG sector a controlling stake of Shaw Wallace and Company

was acquired by United Breweries Group owned by Vijay Mallya. This deal was
worth $371.6 million (Rs. 16.2 billion in Indian currency).

 Another important one in this sector, worth $48.2 million (Rs 2.1 billion in Indian

currency) was the acquisition of 90% stake in Williamson T ea Assam by McL eod
Russell India.

21
 Fast moving consumer goods company Marico Monday said it had acquired

Malaysian hair styling products firm Code 10 a subsidiary of Colgate-Palmolive.

 India‟s fast moving consumer goods and personal care major Marico L td has
acquired health care brand Ingwe from South Africa‟s Guideline Trading. Ingwe
has a turnover of Rs.150 million and its range of products includes immune
boosters.

22
1.5 GOVERNMENT POLICIES

RELETED GOVERNME NT BODIES

Ministry of F ood Processing Industries: This is the main central agency responsible for
promoting and regulating the food processing sector. The Ministry covers the products

of fruits and vegetables, dairy, meat, poultry, fishery, consumer food, grains, non-
molasses based alcoholic drinks, aerated water and soft drink. It acts as a catalyst for
bringing in greater investments into this sector.

REGULATORY ACTS

Food Safety and Standards Act, 2006 (Integrated F ood L aw) - This aims to achieve a

high degree of consumer confidence in the quality and safety of produced, processed,
sold or exported food and has been enacted to:

· Consolidate the laws relating to food;

· Establish the F ood Safety and Standards Authority of India for laying down

science based standards for articles of food;

· Regulate manufacture, storage, distribution, sale and import of food articles with

a view to ensure availability of safe and wholesome food for human consumption
and;

· Pool infrastructure, manpower and testing facilities for better standard fixation
and enforcement through their proper re-deployment.

Essential C ommodities Act, 1955: A number of quality control orders have been issued
under E ssential Commodities Act such as FPO, MMPO, Meat Product Order and

23
Vegetable Oils Control Order. These orders are primarily meant for regulating the

hygienic conditions. Following are the orders:

· Fruit Products Order (FPO), 1955 - It provides for regulation of sanitary and

hygienic conditions in manufacture of fruit and vegetable products.

· Meat Food Products Order (MFPO), 1973 – It deals with quality control of meat

food products from processing to finished product by way of ante-mortem and

post-mortem inspection of meat animals so as to ensure hygienic conditions of

processing of meat food products.

· Milk and Milk Products Order, 1992 - T he objective of this order is to maintain

and increase the supply of liquid milk of desired quality in the interest of the
general public and also for regulating the production, processing and distribution

of milk and milk products.

· Vegetable Oil Control Orders: The V egetable Oil Industry is administered through

the following control / regulation orders which are statutory in nature deriving
their powers from the Essential Commodities Act:

o Vegetable Oil Products (Regulation) Order, 1998,

o Edible Oils Packaging (Regulation) Order, 1998; and

o Solvent Extracted Oil, De-oiled Meal and E dible Flour (Control) order, 1967.

Prevention of F ood Adulteration Act, 1955 lays down specifications for various food
products for the food safety.

The Standards of Weights and Measures Act, 1976, and Standards of Weights and

Measures (Packaged C ommodities) Rules, 1977: This act governs sale of packaged
commodities and provides for mandatory registration for all packaged products in the

country.

24
Agriculture Produce (Grading & Marking) Act (Ministry of Rural Development)
which lays down the specifications for various agricultural commodities including some
processed foods.

Bureau of Indian Standards Act, 1986, which is the largest body for formulating

standards for various food items.

The Drugs and C osmetics Act, 1940: This Act regulates the import, manufacture,
distribution and sale of drugs in India.

The C onsumer Protection Act, 1986: Under the Consumer Protection Act 1986, a

consumer is guaranteed the following rights:

 Right to choice wherever possible, access to a variety of goods and

services at competitive prices.

 Right to consumer education

 Right to be protected against the marketing of goods and overhaul that is

risky to life and property.

 Right to seek reprisal against unfair trade practices corrupt utilization of

consumers.

 Right to be informed about the quality, amount, effectiveness, purity,

regular and price of goods or services so as to protect the consumer

against unfair trade practices.

 Right to be heard and to be assured that consumers' interests will receive

due consideration at appropriate forums.

 Right to clean and healthy environment.

25
26
1.6 RELATED TERMS OF FMCG SECTOR:

FMCG (Fast Moving Consumer Goods)-

It is related to goods which are not durable in nature and those goods required
for daily consumption.
NPD (New Product Development)-
It is the term used to describe the complete process of bringing a new product
or service to market.

ATL (Above the Line)-

It means “Promotional activities carried out through mass media, such as
television, radio and newspaper, are classed as above the line promotion.”

BTL (Below the Line)-

The terms “below the line” promotion or communications, refers to forms of
non-media communication, even non-media advertising.”
TTL (Through the Line)-
It refers to an advertising strategy involving both above and below the line
communications in which one form of advertising points the target to another
form of advertising thereby crossing the “line”.
Down Trading-
“Down Trading” refers to consumers moving to lower priced brands or generic
“house brands”. This is caused by a number of factors but generally due to
consumers having less to spend.
B2B (Business to Business) –
Marketing or Sales related from one business to another business.
B2C (B usiness to Consumer) –
Marketing or Sales related from business directly to end consumers.

27
 MICRO

ANALYSIS
OF

FMCG SECTOR

28
2.1The coca-cola company Heritage time line

Atlanta Beginnings (1886-1892)

It was 1886, and in New Y ork Harbor, workers were constructing the Statue of Liberty.

Eight hundred miles away, another great A merican symbol was about to be unveiled.

Like many people who change history, John Pemberton, an Atlanta pharmacist, was
inspired by simple curiosity. One afternoon, he stirred up a fragrant, caramel -colored

liquid and, when it was done, he carried it a few doors down to Jacobs' Pharmacy. Here,
the mixture was combined with carbonated water and sampled by customers who all

agreed -- this new drink was something special. So Jacobs' Pharmacy put it on sale for
five cents a glass. Pemberton's bookkeeper, Frank R obinson, named the mixture Coca-

Cola®, and wrote it out in his distinct script. T o this day, Coca-Cola is written the same
way. In the first year, Pemberton sold just 9 glasses of Coca-Cola a day. A century later,

The Coca-Cola Company has produced more than 10 billion gallons of syrup.
Unfortunately for Pemberton, he died in 1888 without realizing the success of the

beverage he had created. Over the course of three years, 1888-1891, Atlanta
businessman Asa Griggs Candler secured rights to the business for a total of about

$2,300. Candler would become the Company's first president, and the first to bring real
vision to the business and the brand.

Beyond Atlanta (1893-1904)

Asa G.Candler, a natural born salesman, transformed Coca-Cola from an invention into a

business. He knew there were thirsty people out there, and Candler found brilliant and
innovative ways to introduce them to this exciting new refreshment. He gave away

coupons for complimentary first tastes of Coca-Cola, and outfitted distributing

pharmacists with clocks, urns, calendars and apothecary scales bearing the Coca-Cola

29
brand. People saw Coca-Cola everywhere, and the aggressive promotion worked. By

1895, Candler had built syrup plants in Chicago, Dallas and L os Angeles. Inevitably, the
soda's popularity led to a demand for it to be enjoyed in new ways. In 1894, a

Mississippi businessman named Joseph Biedenharn became the first to put Coca-Cola in
bottles. He sent 12 of them to Candler, who responded without enthusiasm. Despite

being a brilliant and innovative businessman, he didn't realize then that the future of
Coca-Cola would be with portable, bottled beverages customers could take anywhere.

He still didn't realize it five years later, when, in 1899, two Chattanooga lawyers,
Benjamin F. Thomas and Joseph B. Whitehead, secured exclusive rights from Candler to

bottle and sell the beverage -- for the sum of only one dollar.

Safeguarding the brand (1905-1918)

The Company also decided to create a distinctive bottle shape to assure people they
were actually getting a real Coca-Cola. The Root Glass Company of Terre Haute, Indiana,

won a contest to design a bottle that coul d be recognized in the dark. In 1916, they
began manufacturing the famous contour bottle. The contour bottle, which remains the

signature shape of Coca-Cola today, was chosen for its attractive appearance, original
design and the fact that, even in the dark, you could identify the genuine article. As the

country roared into the new century, The Coca-Cola Company grew rapidly, moving into
Canada, Panama, Cuba, Puerto Rico, France, and other countries and U.S. territories. In

1900, there were two bottlers of Coca-Cola; by 1920, there would be about 1,000.

The woodruff L egacy (1919-1940)

Woodruff was a marketing genius who saw opportunities for expansion everywhere. He
led the expansion of Coca-Cola overseas and in 1928 introduced Coca-Cola to the

Olympic Games for the first time when Coca-Cola traveled with the U.S. team to the
1928 Amsterdam Olympics. Woodruff pushed development and distribution of the six -

30
pack, the open top cooler, and many other innovations that made it easier for people to

drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge
success, but a big part of people's lives.

The war and its L egacy (1941-1959)

Woodruff‟ s vision that Coca-Cola be placed within "arm's reach of desire," was coming
true -- from the mid-1940s until 1960, the number of countries with bottling operations

nearly doubled. Post-war A merica was alive with optimism and prosperity. Coca-C ola

was part of a fun, carefree A merican lifestyle, and the imagery of its advertising -- happy
couples at the drive-in, carefree moms driving big yellow convertibles -- reflected the

spirit of the times.

The world of customer (1960-1981)

After 70 years of success with one brand, Coca-Cola®, the Company decided to ex pand

with new flavors: Fanta originally developed in the 1940s and introduced in the 1950s;
Sprite® followed in 1961, with TAB ® in 1963 and Fresca in 1966. In 1960, The Coca-C ola

Company acquired T he Minute Maid Company, adding an entirely new line of business -
- juices -- to the Company. In 1978, The Coca-Cola Company was selected as the only

Company allowed to sell packaged cold drinks in the People's R epublic of China.

Diet coke and new coke (1982-1989)

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-C ola,
the first change in formulation in 99 years. In taste tests, people loved the new formula,

31
commonly called “new Coke.” In the real world, they had a deep emotional attachment

to the original, and they begged and pleaded to get it back.

New markets and brands (1990-1999)

The 1990s were a time of continued growth for The Coca-Cola Company. The

Company's long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby

World Cup and the National Basketball Association. Coca-Cola classic became the

Official Soft Drink of NASCAR racing, connecting the brand with one of the world's
fastest growing and most popular spectator sports.

Coca-cola now (2000-2010)

Coca-Cola is committed to local markets, paying attention to what people from different
cultures and backgrounds like to drink, and where and how they want to drink it. With

its bottling partners, the Company reaches out to the local communities it serves,
believing that Coca-Cola exists to benefit and refresh everyone it touches. From the

early beginnings when just nine drinks a day were served, Coca-Cola has grown to the

world‟ s most ubiquitous brand, with more than 1.4 billion beverage servings sold each
day.

32
2.2 C urrent Position in Market:

• Ranking: Coca Cola Company owns 4 of the world‟s top 5 nonalcoholic sparkling

beverage brands which are - Coca-Cola, Diet Coke, Sprite and Fanta.

• Company Associates: 92,800 worldwide (as of December 31, 2009)

• Operational Reach: 200+ countries

• Consumer Servings (per day): 1.6 billion

• B everage V ariety: Coca Cola offers more than 3,300 products including diet and

regular sparkling beverages, and still beverages such as 100 percent juices, juice drinks,
waters, sports and energy drinks, teas and coffees, and milk- and soy-based beverages.

33
2.3SWOT ANALYSIS:

Strengths:

 World’s leading brand:

Coca-Cola has strong brand recognition across the globe. The company has a leading
brand value and a strong brand portfolio. Coca-Cola owns a large portfolio of product

brands. The company‟s strong brand value facilitates customer recall and allows Coca-
Cola to penetrate new markets and consolidate existing ones.

 Large scale of operations

Coca-Cola is the largest manufacturer, distributor and marketer of nonalcoholic
beverage concentrates and syrups in the world. Coco-Cola is selling trademarked

beverage products since the year 1886 in the US. The company currently sells its
products in more than 200 countries.

 Stands The T est Of Time

These values ensure Coke is as relevant and appealing to today‟s generation as it has
always been and underpins fierce consumer loyalty, affection & love

 Strong supply chain and distribution network.

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

34
the efficiency of the salesmen. It also leads to low costs, higher sales and higher

efficiency thereby leading to higher profits to the firm.

Weakness:

 Negative publicity:
The company received negative publicity in India during September 2006.The Company
was accused by the Center for Science and E nvironment (CSE) of selling products

containing pesticide residues. Coca-Cola products sold in and around the Indian
national capital region contained a hazardous pesticide residue. These pesticides

included chemicals which could cause cancers, damage the nervous and reproductive
systems and reduce bone mineral density. Such negative publicity could adversely

impact the company‟s brand image and the demand for Coca-Cola products. This could
also have an adverse impact on the company‟s growth prospects in the international

markets.

 Storage facility:
The standard storage condition for coca cola is to be kept in chillers so if that product is
ex posed to room temp then it affects the quality of product as well as its taste. B ecause

of that customers don‟t get satisfied.

 Health related issues:

35
Generally doctors do not recommend excessive consumption carbonated drinks, as it a

carbonated drink, it affects digestive system. The effect of this is severely observed in
children. Also regular excessive consumption can lead to tooth decay.

Opportunities

 Huge untapped market:

Although being at the pinnacle of the global market, it has its operations in Indian urban

markets only, it is not a preferred in rural markets. So the company is trying to expand
their business in these areas.

 Increasing income and purchasing capacity:

With the increasing income of the consumers their purchasing power also has gone up
thus the people in the future are anticipated of spending more on these products which

will be an opportunity for the company to expand.

 Rapid rate of urbanization:

The current rate of urbanization is 28% which is expected to grow upto 40% by 2030,
which in turn would improve standard of living of masses hence significant growth in

demand can be expected.

Threats:

 Inclination towards traditional drinks

36
As the traditional drinks in India are cheaply and easily available thus the Indian

population is expected to prefer traditional drinks like Nimbu Pani, Lassi, Buttermilk etc…
instead of soft drinks.

 Climatic conditions:
Due to the seasonal changes in India the consumption of carbonated drinks is confined

only to summer and lesser in winters, thus due to such changes in climate, the demand
for company products is not constant. So it might directly affect the revenue of the

company.

 Sluggish gr owth of carbonated beverages

Consumers have started to look for greater variety in their drinks and are becoming
increasingly health conscious. This has led to a decrease in the consumption of

carbonated beverages. Moreover in the recent years, beverage companies have been
criticized for selling carbonated beverages with high amounts of sugar and

unacceptable levels of dangerous chemical content, and have been implicated for
facilitating poor diet and increasing childhood obesity.

37
2.4 FINANCIAL ANALYSIS:

Financial Highlights:

For the year ended December 31 2009 2008

Net R evenue $30990 $31944

Net Income 6844 5807

Gross Profit 19902 20570

Earnings per share of common stock

Basic net income $2.95 $2.51

Diluted net income 2.93 2.49

Cash Dividents 1.64 1.52

BAL ANCE SHEET DATA

Cash and Cash E quivalents $7,021 $4,701

Marketable securities 62 278

Total current Assets 17,551 12,176

Equity Method Investments 6,217 5,316

Total Assets $48,671 $40,519

Total current liabilities 13,721 12,988

L ong term Debit 5,059 2,781

Capital Surplus 8,537 7,966

Reinvested earnings 41,537 38,513

Total E quity 25,346 20,862

Total L iabilities $48,671 $40,519

Coca cola Company (in mln $)

38
Financial Analysis:
 In 2009, net operating revenues generated by Company owned or consolidated

bottling operations represented approximately 26 percent of Company‟ s

consolidated net operating revenues and distributed approximately 11 percent of

worldwide unit case volume.

 In 2009, bottling partners in which Company has no ownership interest or a no

controlling ownership interest produced and distributed approximately 79

percent of worldwide unit case volume. The remaining approximately 10 percent

of worldwide unit case volume in 2009 was produced by fountain operations and
juice and juice drink, sports drink and other finished beverage operations.

 Amortization expense for infrastructure programs was approximately $150

million, $162 million and $151 million for the years ended December 31- 2009,

2008 and 2007 respectively.

 Net Income Per Share :

Basic net income per share is computed by dividing net income by the
weighted-average number of common shares outstanding during the reporting

period.
Diluted net income per share is computed similarly to basic net income per

share, except that it includes the potential dilution that could occur if dilutive

securities were exercised.

Approximately, 103 million, 59 million and 71 million stock option awards were

excluded from the computations of diluted net income per share in 2009, 2008
and 2007 respectively.

 Cash Flow Hedging Strategy :

39
 The Company uses cash flow hedges to minimize the variability in cash flows of

assets or liabilities or forecasted transactions caused by fluctuations in foreign

currency exchange rates, commodity prices or interest rates.

The Company did not discontinue any cash flow hedging relationships during
the year ended December 31, 2009.

The maximum length of time over which the Company hedges its exposure to
future cash flows is typically three years.

 L ong term Debit :

As of December 31, 2009 and 2008, all long-term debt had fixed interest rates.

The weighted-average interest rate on the outstanding balances of Company‟ s

long-term debt was 5.0 percent and 5.7 percent for the years ended December

31, 2009 and 2008 respectively.

Total interest paid was approximately $346 million, $460 million and $405 million

in 2009, 2008 and 2007 respectively.

Financial Ratios :
 Current Ratio :

Current ratio = Current Asset

Current L iability

Particulars C oca-C ola

Current Assets 17551

Current Liabilities 13721

Current Ratio 1.28:1

The Current R atio of the Coca-Cola Company is 1.28:1

40
  Gross Profit :

Gross Profit Ratio= Gross Profit * 100

Sales

Particulars C oca-C ola

Gross Profit 19902

Sales 6844

Gross Profit Ratio 290.8

The Gross Profit Ratio of the company is 290.8

2.5 F our P’s of Marketing:

Product:

Product mix of Coca-Cola consists of the various brand packs and flavors given in the

table. Product strategy of the Coca-Cola is to promote all the brands available in all the
brands packs and to introduce the product in new flavors and. even new product.
Regarding this Kinley soda is introduced. Fanta in green apple flavor is also introduced.

Coke Brands in Indian Origin

COCA-COLA:

Developed in a brass pot in 1886, Coca-Cola is the most recognized and admired

trademark around the globe. Not to mention the best selling soft drink in the world.

SPRITE:

41
In 1961, a citrus-flavored drink made its U.S. debut, using "Sprite Boy" as inspiration for

its name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-
Cola. Sprite is now the fastest growing major soft drink in the U.S., and the world's most

popular lemon-lime soft drink.

FANTA:

The name "Fanta" was first registered as a trademark in Germany in 1941, when it was

used for a few years for a soft drink created from available materials and flavors.

The name was then revived in 1955 in Naples, Italy, when it was used for the "Fanta"
orange drink we know today. It is now the trademark name for a line of flavored drinks

sold around the world.

DIET COKE:

The extension of the Coca-Cola name began in 1982 with the introduction of diet Coke
(also called Coca-Cola light in some countries). Diet coke quickly became the number-

one selling low-calorie soft drink in the world.

LIMCA:

This is thirst-quenching beverage features a fresh and light lemon-lime taste and a
lighthearted attitude. The Limca brand was introduced in 1971 and acquired by the

Coca-Cola Company in 1993.

MAAZA:

42
Maaza, launched in 1984 and acquired by The Coca-Cola Company in 1993, is a non

carbonated mango soft drink with a rich, juicy m natural mango taste.

THUMPS UP:

In 1993, The Coca-Cola Company acquired this brand, which was originally introduced in

1977. Its strong and fizzy taste makes it unique carbonated Indian Cola.

KINLEY WATER:

This is thirst-quenching beverage features fresh the fresh water with the saturated

oxygen level.

SUNFILL:

This is thirst-quenching beverage features a fresh and light orange taste and a
lighthearted attitude.

Product Range:

Flavor Ingredients Pack

Cola Cola Flavor carbonated water sugar 200Ml.300Ml.

500Ml.1.5 Litre

2 Litre

43
Orange Orange Flavor + Carbonated 200Ml.300Ml.

Water+ Sugar 500Ml.1.5 Litre

2 Litre

Fruit Juice Mango Pulp+ Treated water+ sugar 250 ML

Cloudy L emon Lemon Flavor+ Carbonated Water+ 200Ml.300Ml.

Sugar 500Ml.1.5 Litre

2 Litre

PRICE

Regarding the Pricing Policy we are not able to have the information regarding the cost
of the product and prices in the other origin but we have the prices at which the

products available in the market below:

All the soft drinks product of the company except MAZZA will have the same prices on

all the different sizes.

ON 200ML:

The prices of the bottle available in the market is Rs.9

ON 250 ML :

The price of the bottle is Rs.10 and this bottle is available for MAZZA only.

ON 600ML:

The prices of the bottle available in the market is Rs.22 and it can be for soft drinks
except MAZZA

44
ON 1lt. Pack:

The prices of this pack available in the market is Rs.35 , MAAZA is of Rs.40 and KINLEY
water bottle is of Rs.12

ON 2lt. Pack:

The prices of this pack available in the market are Rs.55 and MAAZA is of Rs.70.

10% discount has been given in the big retail outlets only in case of 1lt. and 2lt. pack.
Regarding the allowances which are not fixed and can be changed time to time.

PL ACE

The Coca-Cola Company in India is governed from its corporate office located at

Gurgaon in Haryana. It governs the working of five zones covering whole India these
zones are: - Northern zone, E astern zone, Western zone, Southern zone and Andhra

Pradesh zone. These zones are divided in to various, plants, which govern the area
assigned to them. The areas are the various distribution centers called distributors and

C&F agents. Then comes the retailers/customer for the company's product, they receive
goods from distributors and C&F agents. Finally consumer is there, having the product

from the customer's shops or delivered to their home, it is more clearly visible through
this chart. The Coca-Cola Company, which gave its reach to the mouth of billions of

people all around the world having a wide distribution, network. In India, the pace and
speed at which Coca-Cola has widened its business is really amazing. Distribution

network is the biggest strength of the company.

In India, there are over 5 million retail outlets dispersed all over the country. The
retailing industry provides employment to over 18mn people. 1 out of every 25 families

45
in India is engaged in the business of retailing. Ownership and management are

predominantly family controlled. However in sharp contrast to developed countries, unit

average size of a retail outlet in India is very small.

Organized retailing, however, has been a recent phenomenon and is relatively

undeveloped. There are no large super market chains/ shopping malls. Consumers are

unwilling to pay a premium for convenience shopping as their counterparts in the

western countries do. While small chain stores called A pna B azaars and Sahakan

Bhandaars, which offer products at reasonable prices, have been fairly popular,
Department Stores and F ood Stores are slowly gaining popularity. A large number of

corporate have recently ventured into retailing.

The retail outlet in India can be broadly categorized as follows:

- Grocery stores

- General purpose stores

- Food stores

- Pan bidi shops

- Chemist/ drug stores

- Cold chains
The relative share of grocers dropped from over 50% in the early 90's to 35% in the late

90's. Chemist outlets on the other hand, have been expanding their product range to
include high margin FMCG products from shampoos to ketchup. Pan-wallas are also

emerging as fully fledged consumer product outlets.

COMPOSITION OF URBAN OUTLETS

46
COMPOSITION OF RURAL OUTLETS

DISTRIBUTION:

Marketing or Distribution channel refers to the set of marketing intermediaries which

manufacturer's link together to reach their products to the ultimate consumers.

47
Depending on the product, nature of market and manufacturers' resources/strategy,

there can be one or more links between the manufacturer and consumer.

Manufacturer – Retailers

Manufacturer - Wholesalers – R etailers

Manufacturer - Stockiest - Wholesalers - R etailers.

PROMOTION

This part of the marketing is playing a very vital and important role in the current

situation in India. L ooking at the competition and promotion and advertising budget of
both the companies coca cola and Pepsi, one can easily estimate the importance of this.

Top line promotion includes the promotion designed and done by the company's
corporate office of Gurgaon and the office of B ombay TV ads, design of banners, and

other POS done by the company simultaneously all around India. With no Difference in
designs etc. fall in this category. B elow the line promotion includes the promotion

schemes, publicity material, POS display done by the company from zonal, plant, sales
manager and area sales manager level. . At the sales manager and area sales manager

level the promotion done exclusively for the cities in their respective area and other POS
display.

ADVERTISING AND PROMOTION:

Advertising consists of non-personal form of communications. The communication is

conducted through trade media under player sponsorships. Advertising aims at

providing information about the product arouse demand for the product and emphasize
on superior features of the advertised product over others. Players have to decide on

48
overall advertisement budget, message and mode of presentation, type of media, timing

etc. They invariably do post audit of advertising efficacy.

Promotions are of two type‟ s viz. pull promotions where consumers are incentivized and
push promotion where dealers/ retailers are incentivized. There are several forms of

promotion such as distributing free samples, discount coupons; gift offers for consumers
and target based incentives and display schemes etc for retailers. Marketers also

sponsor charity programmes, sports etc to promote corporate/ brand image.

Coca-cola is the official sponsor for Delhi commonwealth games-2010

SALES PROMTION

It is a logistics control process that applies situational understanding from both the

operational and logistical common operating pictures in order to dynamically control

and synchronize the flow of material through the distribution pipelines, including

retrograde and lateral distribution. The last part of the definition - retrograde and lateral
distribution - is critical to future success and is often overlooked in distribution

management schemes. Ability to move material in any direction through the pipelines
provides an economy of effort that actually becomes a force multiplier. In this manner,

distribution management becomes a key enabler of logistics transformation, by

reducing materiel requirements to only those that are needed and by leveraging stocks

positioning to reduce the total cost of sustainment.

It consists with:

 Advanced F orecasting

 Advanced Pricing
 Advanced Stock V aluation
 Agreement Management

49
  Bulk Stock V aluation

 Enterprise Facility
 Planning Inventory Management

2.6 HR POLICIES:

Company culture-

Special training is given to employees; new employees also are placed with old ones to
learn work and the values prevalent in the company. Two cups teas are free for every

50
employee daily which represents the hospitable nature of the company. The company

working environment is a well good blend of Asian and western values.

Motivation for employees-

Wages

Coca cola provides smart wages to its employees, which are competitive and

satisfactory. Along with the wages they are also provided with a lot of facilities and
amenities. Here at coca cola India the blue collar workers are offered wages along with

commission, sales man are offered wages plus the commission pursuing certain criteria
and at the end the white collar executive class draws a handsome amount of salary

which is pretty competitive.

Staffing and training-

The company has always believed that education is an important tool and a powerful
force in developing the quality of life and creating opportunities for peopl e and their

families, all over the world they are trying hard to create a pool of hard working,
knowledge hungry, well educated personnel. Because the company speaks it much-

“Our manifesto for growth is rooted in our greatest asset-our people”

Time management-

The management of the work is done in two shifts, running from 8 am to 4 pm (all the

departments work during this time, except the technical department) 4 pm to 12 am

(only the technical department) Although the company does make a provision for some

extra shifts too when there is a hike in demand.

51
Medical amenities-

The company provides medical facilities to all its employees. The treatment is much

provided according to the designations.

E mployees are assets-

As the company has expanded over the decades, it has benefited itself a lot with the
various cultural insights and perspectives of the society where all the business is there.

The future will be highly depended on the ability to develop a world wide team rich in
the diversity of thinking, perspective, culture and backgrounds.

Also the company believes in-

“Our Company and our leadership must be as inclusive as our brands. It's the lesson of
markets, and the ultimate benefit of inclusive behavior -- as diverse talent proliferates,

ideas and innovation thrive as well… The entire leadership team and I are personally
committed to inclusiveness and fairness, and to making diversity a competitive

advantage for our organization."

E mployee forums-

In the USA, through employee forums, employees can connect with the colleagues who
share similar interests and backgrounds. In this forums and elsewhere, employees

support each other‟s personal and professional growth and enhance their individual and
collective ability to contribute to the company. Forums that are currently active include:

Administrative professionals

African A merican

Asian/pacific American

52
Gay and lesbian

Women

Mentoring programs-

The company is creating a system of mentoring programs that include, one-on-one

mentoring, group mentoring and mentoring self study tools.

Currently, coca cola North A merica and the minute maid company have one-on-one

mentoring programs designed to foster professional growth and development. These

programs promote trusting relationships for networking, coaching, career counseling

and life lessons.

It also increases the flow of information across organizational lines and encourages
diverse thinking and cross functional learning.

Human resource management-

The human resource development has many advantages at the company. Since it is a
global company and it is impossible to create certain policies and procedures applicable

in all divisions of the company, cultural and political differences are needed to be taken

into consideration.

Recruitment process-

It has a well established recruitment process. First following the news papers, website

advertisements etc. The applicants with entertaining CVs are asked for. The recruitment
process then goes through both internal and external recruitment.

Training pr ocess of employees-

53
After the recruitment of the fresh employees they are trained for a period of three

months. Training is also provided to existing employees, depending on conditions like

introduction of new technology, here the start up to the technology is only given when

all the employees are well versed in it.

Performance appraisal-

The appraisals are given annually to the employees with the completion of the

respective tasks assigned to them.

Compensations and benefits-

The various compensations and benefits provided to the employees in the company
are-

Basic salary

Bonus

Medical facilities

Pick and drop

Gratuity fund

Social security

E mployee’s relation-

The company believes that an open door policy is the best policy for the employee‟ s
relation because due to this, the employees feel very independent and they know that if

54
they get into any problem, they can contact directly to the manager of their department.

Thus the company strongly believes in this policy for satisfying its employees.

Safety policy-

The company sets safety standards at the level that ensure compliance with the
government and the company‟s requirements.

Protecting the employees and ensuring public safety extends throughout the
organization. There is an integrated approach to the innovation for the saf ety of

employees at all the levels of operation.

2.7 ORGANIZATIONAL STRUCTURE:

55
BOARD OF DIRECTORS

Sam Nunn
Co- Chairman and Chief Executive Officer ,Nuclear Threat Initiative

Alexis M. Herman
Chair and Chief Executive Officer, New V entures, LLC

Peter V. Ueberroth
Investor and Chairman, Contrarian Group, Inc., and Nonexecutive Co-Chairman, Pebble
Beach Company

Cathleen P. Black
President, Hearst Magazines

Muhtar K ent
Chairman and Chief Executive Officer,The Coca-Cola Company

56
James D. R obinson III
General Partner, RRE Ventures

Maria E lena L agomasino

Chief Executive Officer, GenSpring Family Offices, LLC

Barry Diller
Chairman of the B oard and Chief Executive Officer,IAC/InteractiveCorp, and Chairman of
the B oard and Senior Executive, Expedia, Inc.

Herbert A. Allen
President and Chief Executive Officer, Allen & Company Incorporated

Jacob Wallenber g
Chairman of the B oard, Investor AB, and Vice Chairman of Skandinaviska E nskilda

Banken AB

Donald R. K eough
Nonex ecutive Chairman of the B oard ,Allen & Company Incorporated, and Nonexecutive
Chairman of the B oard, Allen & Company LLC

Ronald W. Allen
Advisory Director, Former Consultant and A dvisory Director, and R etired Chairman of
the B oard, President and Chief Executive Officer, Delta Air Lines, Inc.

James B. Williams

Retired Chairman of the B oard and Chief Executive Officer, SunTrust Banks, Inc.

Donald F. McHenry

Distinguished Professor in the Practice of Diplomacy and International Affairs,

Georgetown University.

57
2.8 DIFFERE NTIATION STRATEGY:

UTC Scheme

UTC mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.

This scheme is very much popular among children.

Event specific promotion:

Coca cola is expert in adapting the change according to the culture of the country
e.g. In India they came up with new promotion for the Diwali, Dasheharra etc.

Collaboration with leading food chains:

Coca cola has tied up with leading food chains like McDonalds, K FC, Dominnos
etc. They serve whole coca cola range to the customers.

2.9 CSR Initiatives

Community Water Programs-

The Coca-Cola Company‟s community water programs are designed to support healthy
watersheds and sustainable programs to balance the water used throughout their
production process. They do this by working on a wide range of locally relevant

58
initiatives, such as watershed protection; expanding community drinking water and

sanitation access; agricultural water use efficiency; and education and awareness
programs.

Together with their bottling partners, they collaborate with the United Nations

Development Programs, Global Water Challenge, Play Pumps International, Ocean

Conservancy and others to protect watersheds and support initiatives that bring clean

water and sanitation to underserved areas. Since 2005, they have developed Community
Water Partnerships, with more than 250 projects in 70 countries.

Sustainable Agricultural:

The Coca-Cola Company's commitment to responsible citizenship includes conservation

of natural resources and protection of the soil, water and climate required to sustain life

on earth. As new ways are considered to make a difference in the communities where
they operate, they recognize that many of greatest social and environmental impacts

occur in agricultural supply chain.

Agriculture touches the lives of billions of people. It plays a vital role in society not only

by providing sustenance required for human survival, but also as the world's largest
industry and its biggest employer.

Education initiatives:

Education is one of the keys to socioeconomic development, and coca-cola create, build

and encourage educational programs for students of all ages. Their programs focus on

building educational infrastructure; mentoring; school drop-out prevention; reading and

literacy; scholarships; business-education partnerships; and other local needs. Their

59
longest-running educational program launched in the United States in 1987. coca-cola

is having educational development facilities in following countries.

 United States
 Argentina
 Chile
 China
 E gypt
 Pakistan
 Philippines

HIV / AIDS Intiatives:

They work with local health officials and a variety of experts to educate communities on

relevant health concerns, tackling such issues as polio, tuberculosis, hepatitis, HIV /AIDS,
malnutrition and proper hygiene.

Some of HIV /AIDS initiatives include:

 The Coca-Cola Africa Foundation has pledged $2.5 million over a three-year

period to further develop community HIV /AIDS programs in E gypt, Ethiopia, K enya,
South Africa and T anzania. We sponsor high-impact community-focused programs

conducted across the continent with our strategic partners: the African Network for
Children Orphaned or At Risk, the African Broadcast Media Partnership A gainst

HIV /AIDS and Dance4Life.

'Men as Partners' is a program they sponsor in Africa, which works with men to play a
constructive role in promoting gender equity and health in their families and

communities.

60
  In China, they launched a program to distribute 100,000 sets of playing cards with

AIDS, tuberculosis and malaria prevention information to migrant workers in provinces

where the incidence of disease is high.

 In Haiti, The Coca-Cola Foundation has provided a $158,000 grant to Counterpart

International, a local NGO, to implement a Y outh AIDS Awareness Project in inner-city

Port-au-Prince. The project is designed to reduce HIV /AIDS transmission among 15- to
24-year-olds, by creating 10 peer-led school awareness clubs and promoting HIV /AIDS

prevention through life skills training and "edutainment" -- the intersection of education
and entertainment. More than 50,000 youths will be reached by HIV /AIDS prevention

activities and messages through this program.

Disaster Relief & Recovery

Their system is in a unique position to provide assistance during and after natural
disasters. The large distribution network allows to deliver necessities quickly and to

reach communities not easily accessible.

The Coca-Cola system's response to the January 12, 2010 earthquake in Haiti was

immediate. The Company donated $2 million to the R ed Cross, and more than 1 million
liters of water and other Coca-Cola beverages traveled by land, air and sea to reach

those in urgent need.

A clean drinking water project was also launched in a local school of Haripur area,
directly benefiting 3,000 students and their families.

61
2.10 Achievements and Awards:

 Coca-Cola and Sprite, Best Global Brands 2010, Interbrand (September 2010).

 Top 10, "World's Most Attractive E mployer 2010" List, Universum survey
(September 2010).

 Greener Package Award for Sustainable Innovation, Plant B ottle Packaging

(August 2010).

 Most Desirable Company to Work for A mong Britons,(July 2010).

 Most Innovative Companies for 2010, BusinessWeek (April 2010).

 50 Most A dmired Companies, FORTUNE 500(March 2010).

 2009 CSR Award, Coca-Cola China, AmCham Shanghai 2009 Corporate Social
Responsibility Conference and Awards (November 2009).

 "Strongest Management," E mployer of the Y ear election, Randstad (survey of

10,000 B elgians aged 18-65) (February 2009).

 Water Care Award, Coca-Cola South Africa's L eak R epair Project, Mail &
Guardian's Greening the Future Awards (June 2008).

 "Best Corporate Brand License of the Y ear" for innovative merchandise made
from "reclaimed, recycled and repurposed" materials, The Coca-Cola Company,
Licensing Industry Merchandisers' Association (LIMA) (June 2008).

62
  No. 1 for the seventh consecutive year, 100 B est Global Brands, Coca-Cola,

BusinessWeek/Interbrand (July 2007).

 No. 1, Food and B everage Industry Category, B est E thicalQuote Progress and B est

Reported Performance Categories (July 2007).

2.11 CARE E R OPPORTUNITIE S:

FINANCE - T he Finance function at T he Coca-Cola Company offers challenges and

opportunities that are simply world-class. Coca-cola gives opportunities available in

Accounting, Financial Analysis, Audit, Business Development, Tax and Treasury.

Regardless of educational background or level of experience.

HUMAN RE SOURCE S – It‟s making sure that people are the very best. The key to the

success is people. T he Coca-Cola Company, understands the importance of Human

Resources, which is why they have one of the most robust departments. Opportunities

include Generalist, Staffing, Training, Compensation and B enefits, Organizational

Development, E mployee R elations and Compliance and Occupational Health.

INFORMATION TE CHNOL OGY – It‟s keeping T he Coca-Cola Company a few steps

beyond the cutting-edge.Coca-cola always invest in people and the technologies that
will power the company for years to come. Coca-cola has opportunities in A pplication

63
Development and Support, Operations, IT Architecture, Infrastructure Systems Support,

Network Management, Business Systems Planning, SAP, Database Management and

Technical Training.

MARK E TING – It‟s driving the success of the one of the world‟s best known brands.

The strength of the brands is tied directly to the people behind them. Coca-cola has
opportunities available in Brand Management, Creative Services, Marketing R esearch,

Advertising, Media, Category Management, Channel and Customer Marketing,

Marketing Asset Management, Promotions and Merchandising/Licensing.

SAL E S AND ACCOUNT MANAGE ME NT – It‟s representing T he Coca-Cola Company

to the world. Millions of servings a day, billions of dollars a year. The Coca-Cola
Company, gives people the resources they need to build long-term relationships with

customers. They have opportunities available in Account Management, Operations

Management, Network Account Management and Sales Analysis/Decision Support.

2.12 CONCL USION

With an elaborate operational reach, a reputed world ranking, a huge variety of 3300

beverages, coca cola reaches to 200+ countries today. Although still it has a huge
untapped market. With a satisfactory gross profit ratio and current ratio it still runs as a

leader in the beverage market. With well defined CSR initiatives, the company is also

heading for social responsibilities. The hard earned rankings around the world are also
seeked out for in India and the company is rigorously working for the same.

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2.13 BIBLIOGRAPHY

1. www.cocacolaindia.com

2. www.moneycontrol.com

3. www.ibef.org

4. Annual report of coca-cola 2009-10

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