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HINDUSTAN COCA-COLA
BEVERAGES
PRIVATE LIMITED(HCCBPL)
AN INTERNSHIP REPORT ON
COCA-COLA
SWOT ANALYSIS IN JAMSHEDPUR
(IN PARTIAL FULFILMENT OF TWO YEARS FULL TIMEPGPBM PROGRAMME)
SUMAN SEN
PGPBM(2009-11)
ISB&M KOLKATA
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THE COCA-COLA MARKET IN JSR.
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CONTENT PG NO
PREFACE ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
ABOUT THE COMPANY
MARKETING STRATEGY CITY INTRODUCTION RIGHT EXECUTION DAILY
RED PARAMETERSVisicoolerAvailability Activation
SWOT ANALYSIS
COMPETITION BETWEENCOKE V/S PEPSI
SWOT MATRIX
ABOUT MY TENURE QUESTIONAIRE
SOME TV COMMERCIAL ADS CHART CONCLUSION
DATA SOURCES
4567-910-1314-1617-19
19-29
30-3637-39
39-414243-4647484950
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PREFACE
The PGPBM course curriculum is designed in such a way
that a student can grasp maximum knowledge through his
practical experience in the corporate world. Business schools
today understand the importance of practical knowledge over
the theoretical base.
The research report is necessary for thepartial fulfillment of the PGPBM curriculum and it provides
an opportunity to the researcher in understanding an industry
with special emphasis on the development of skills in
analyzing and interpreting practical problems through the
application of management theories and techniques. It is a new
platform of learning through practical experience, which
incorporates survey and comparative analysis. It helps the
learner to relate the theory with practice and to test the
validity and applicability of classroom learning with real life
business situations.
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ACKNOWLEDGEMENT
At first I would like to express my sincere gratitude towards
Hindustan coca-cola beverages private limited for having given me
an opportunity to work for them and make the best out of my
internship.It has been an enriching experience for me to undergo
my internship in coca-cola,which would not have been possible
without the goodwill and support of the people around.
I am very thankful to Mr. Ashish Jha(Marketing
Head),Mr.Shashi.B.Kumar(Area Sales Manager),Mr. Kausalendra
Kumar and Mr.Devendra Kumar(Sales Team Leader) my guide who
have always supported me and under whose guidance iam able tocomplete this project.He has given me all his assistance and
information from time to time needed during the course of my
internship.My heartfelt gratitude also goes to all MD‟s and EMD‟s at
HCCBPL in Jamshedpur for having cooperated with me and
guided me throughout the internship period.
My learning experience during the period was immense
and incredible.My Work basically included a detailed study of
developing the marketing strategies and swot analysis of coca-cola
market in Jamshedpur.
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EXECUTIVE SUMMARY
Market provides a key to gain actual success only to those
companies which match best with the current environment ie:
imperative which can deliver to people needs and wants.This can
only be possible with proper availability of good quality of products
and excellent services on time which can add a golden opportunity
for huge sales.
This project report introduces a brief study of marketing
strategy and sales promotion technique of coca-cola for
retailers.This project report would include mainly two aspects:
Right execution daily (RED) in coca-cola.
SWOT analysis of coca-cola in Jamshedpur.
RED is a very important mechanism for coca cola to track its
daily functioning in the market.This report will provide an
opportunity to know retailers psychographic needs and coca-
cola to frame a good future plan to satisfy maximum
needs,taste preferences of the retailers.It would also help coca
cola to establish its guiding role in the market of
Jamshedpur.SWOT generally stands strength,weakness,
oppurtunity and threat which helps a company to
understand its current conditions better and to work upon
upon where it lacks.For coca cola company swot can be
analysed through a detail study of :
Retailers
Customers.
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ABOUT THE COMPANY
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. 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 ahree- legged brass kettle in his backyard.
The coca-cola company began building its global network in
1920s.Now the coca-cola company claims that the beverage is
sold in more than 200 countries producing 400 brands.The
coca-cola system has successfully applied a simple formula on
a global scale.
In July 1985,coke was the first soft drink to be enjoyed in
outer space on the space shuttle challenger.
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 reqired under Foreign Exchange
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.
Coca-cola owns more than 1/2of the world‟s beverages.
Coca-cola is affordable in all the outlets we surveyed.
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Coca-cola comes in variety of sizes worldwide so one can use it
for a crowd as well as for a personal snack.
MISSION OF COCA-COLA:
To refresh the world in mind, body and spirit………… To stand as a global leader in beverages. To make our product available in each hand.
To make our product distinctive. To inspire moments of optimism through our brand and
action. To create value in brands and difference everywhere we
engage.
VISION OF COCA-COLA:
PROFIT: Maximize the return of shareholder. PEOPLE: Establish a great place to work where people
are inspired to the best they can do. PORTFOLIO: Bringing to the world a portfolio of
beverage brands that anticipate and safely people‟s desire
and need. PARTNERS: nurturing a winning network of partners &
building a mutual loyalty. PLANET: being a responsible global citizen that makes a
difference.
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VALUES AT COCA-COLA
The values that the employees in the Company are expected to keepup to and work by regularly are as follows:
LEADERSHIP: To take an initiative and lead, motivate anddrive the team with energy and zeal, to deliver outstandingresults.
INNOVATION: To continuously strive for progress and reachthe next level of excellence in everything we do.
PASSION: To be deeply committed and display drive and
energy in the quest to deliver outstanding performance.
TEAMWORK: To unite for greater strength and workcollectively as a group towards the achievement of commongoals.
OWNERSHIP: To think and act like owners at all levels; tohave decisions taken at the lowest appropriate level.
ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets andgoal.
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MARKETING STRATEGY OF COCA-COLA
Focus on availability of products in market
Focus on availability of products in outlets.
Coke products visible for consumers.
More focus in rural area.
Regular market vigilance by market developer.
Distribution of product according locality.
Extra focus on exclusive outlets.
Aggressive rural area advertisement.
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FOCUS ON AVAILABILITY OF PRODUCTS IN MARKET
Coca cola works on the philosophy of DIKHEGA TO BIKEGA.This is
the main formula of the marketing strategy of each company.So
availability of product in the market is clear.For this reason marketdeveloper daily come in market to check their product availability.
FOCUS ON AVAILABILITY OF PRODUCTS IN OUTLET
There is big difference between the availability of products in
market & outlets. Coca-Cola want that their product displayed in
each outlet in market so it is important that the product firstavailable in market after than it put on outlets.
FOCUS ON VISIBILITY OF COKE PRODUCT IN MARKET
Coca is today aiming at making its products visible to its customers
so it provides the retailers with the racks to display its
items.Company also provides the retailers with the visicoolers to
make the chilled products visible to the customers.
MORE FOCUS ON RURAL AREA
The rural market is a significant part of our sales promotional
discount scheme which is enabling us retailer‟s link with our
product.The real market in India is the rural market. If u can crack
it, there is tremendous potential.In early 2002 CCI launched a newadvertising campaign for attracting more rural consumers. The aids
with India leading bollywood star Aamir Khan,With movie of
lagaan.The tag line of aid is (Thanda Matlab Coca-Cola)
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REGULAR MARKET VIGILANCE BY MARKETDEVELOPER
To know the position of Coke‟s product in the market coca-colaappoint some executives those who go in market to check thevisibility and availability of company‟s products take carecompanies assets, check visicoolers and talk to shopkeeper & takefeedback about their product.
DISTRIBUTION OF PRODUCTS ACCORDING TO
LOCALITY
Coca-cola company distributes their schemes according to area.Area or place where soft drinks sold in a large manner, on thoseplace company gives good schemes to shopkeeper and retailer.Place like railway station, bus stand are consider in this category and place which have low sellings the company gives small schemesto the shopkeepers.
EXTRA FOCUS ON EXCLUSIVE OUTLETS
Outlets which only sales coca-cola product and gives good sale tocompany,are consider in this category company gives extraschemes, discount and other gift to these shops and tries to keepthem happy and make long relationship.Problem of these kind of outlets are resolved as soon as possible.
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AGGRESSIVE ADVERTISEMENT
Coca-cola use the concept of aggressive advertises for sales
promotion.Company introduces different schemes
and advertises them with electronic and print media.
These advertisements build Brand image and establish
awareness.
Brand ambassador play an important role. Brand
ambassador encourage the today youth to trust their instincts and influence
them.some successful advertisements are “taaza mango, maaza mango”and
“bottle mein aam, maaza hai naam”. “life ho to aisi”, “jo chaho wo ho
jaye”.The biggest ad campaign was in 2002 “ thanda matlab coca cola” which
gave a strong push to the product in the market.
“ Thanda matlab coca cola”
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JAMSHEDPUR CITY‟S INTRODUCTION
Jamshedpur is the largest urban conglomeration in the state of Jharkhand, India. Jamshedpur is a well-planned industrial city of India, founded by late
Jamshedji Nusserwanji Tata. It is also known as Steel City and TataNagar orsimply Tata.
Jamshedpur is the headquarters of the East Singhbhum district of Jharkhand.
It has a population of 1.1 million and ranks 28th among the 35 million-pluscities in India. It is located on the Chota Nagpur plateau and is surrounded by the beautiful Dalma Hills. The city is bordered by the rivers Subarnarekha and
Kharkai on the north and west parts of the city.
Jamshedpur is a major industrial center of East India.It houses numerous wellknown company's like Tata Steel, Tata Motors, Tata Power, Lafarge Cement,
Telcon, BOC Gases, Praxair, TCE and many more. It is also home to the one of the largest Industrial Belts of India known as Adityapur.
It is a modern, industrial city; the main industries being iron and steel, truckmanufacturing, tinplate production, cement and other small and medium scaleindustries revolving around these products. The largest factory is that of TataSteel (the erstwhile Tata Iron and Steel Company or TISCO), and it is situated
almost at the center of the city. Tata Steel is the largest iron and steelproducing plant in India, as well as the oldest.
Tata Steel plant in Jamshedpur
The steel plant is large enough and still covers around a fourth of the land areaof Jamshedpur, and has two inland water lakes.
The other major factory in the city is Tata Motors with Telcon, whichmanufactures heavy vehicles and construction/earth moving equipment. Tata
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Motors was previously called The Tata Engineering and Locomotive Company (TELCO), as railway locomotives were once manufactured here.
DEMOGRAPHIC
Jamshedpur had a population of 1,134,788 and ranks 28th among the 35million-plus cities in India according to the census 2001. Males constitute 53%of the population and females 47%. Jamshedpur has an average literacy rate of 82%, higher than the national average of 59.5%. In Jamshedpur, 11% of thepopulation is under 6 years of age.
The conversational language is Hindi. However tribal languages like Santhaliand Ho are also spoken in some parts of the city. The population iscosmopolitan in nature owing to migration of people from all over the country to work in the numerous industries present in the city.
Apart from the native tribal population the other ethno-religious groups are
Bengalis, Biharis, Punjabis, Oriyas, Gujaratis, Marwaris and Muslims . Thereis a small but significant number of South Indians as well.
Telco: This township is owned and maintained by Tata Motors. Telco officialsand employees enjoy all facilities ranging from medical to entertainment allwithin this area itself, including health care, sports and education. There is alsoa 'Telco Club' with a swimming pool and a good cricket ground next to it.
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Adityapur:Connected to the Steel City by Kharkai Bridge, at one time held thestatus of Asia's largest industrial estate. Most of the ancillary businessescatering to Tata Motors and Tata Cummins are located here. Though situated ina district (Saraikela-Kharsawan) other than that in which Jamshedpur islocated (East Singhbhum), it is considered a part of the city. An All India RadioHigh Power broadcasting station is located here.It houses more than 800 smallscale industries and prior to noida was the largest industrial belt in Asia
Mango:Situated across the Subarnarekha River, it's a huge and growingresidential area. Once a suburb, thanks to construction entrepreneurs, Mangois now a real estate hotbed. Locations around Lake Dimna offer the most scenicviews in the City.
Govindpur: Close to Tata Motors, Sumant Mulvakar Park, the Tata Power plant,and the Lafarge Cement plant, Govindpur lies on the way to the Rakha Copper
Project and Jadugora Uranium Mines.
Bhalubasa: A residential area with private housing. Its major landmark is the
flyover connecting Sakchi to the Agrico area.
Map showing the areas of Jamshedpur
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RIGHT EXECUTION DAILY(RED)
To understand Coca-Cola market, „Right Execution Daily‟ (RED) is the only tool
to analyse how its effectiveness has become fundamental to Coca-Cola‟s
growth. Right execution daily is executing a routine that have parameters with
set standards in the market on a daily basis through the channel that
constitutes of management (at various level), Market developers (MD),
distributors and retailers. RED is a tool for the Coca Cola Company that takes
care of the proper maintenance, marketing and sales of the products in the
market.To function properly, the market has been segmented into various types
according to RED.
I. DEPENDING ON THE TYPES OF OUTLET:
GROCERY: Outlets primarily engaged in retailing of food and various
household items. It includes Grocers (Outlets dealing mainly in grains, spices,
edible oil, vanaspati etc.) and General stores (Outlets selling items of day to day
requirements and stocking of variety of branded products).
EATING AND DRINKING: Outlets selling items to eat which are being
cooked within outlet, made at the outlet with possibility of consuming those
products within outlet. The outlet may have a place to sit. It includes
Bakery/Mithai shops/Restaurants/ Bars/ Juice centers/ Soft drink shops/
Tea shops/ Cafes etc.
CONVENIENCE: Includes outlets which are small, generally accessible
locally. These are often located alongside busy roads. It includes Chemists,
STD booths, Pan Shops etc.
II. Depending upon the volume of sales:
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The classification is based on the kind of sales an outlet have in a year. They are
divided into three types DIAMOND, GOLD, SILVER and BRONZE. The table below
shows the volume per outlet categorization:
III.Depending upon the income of the consumers
Depending upon the income of the consumers in an area the market is divided into
HIGH, MEDIUM and LOW. This classification gives an idea to the outlet which product
to go for in a particular market.
BRONZE < 200
SILVER 200-499
GOLD 500-799
DIAMOND >800
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TABLE SHOWING THE INCOME CLASS OF CONSUMERS ON THE BASIS OF
VOLUME SALES
RED PARAMETERS
The RED parameters are VISICOOLER,ACTIVATION & AVAILABILITY.Company can only perform all these activities through RED. To keep a tab on the proper
functioning of RED, RED SCORING is done on the monthly basis by ac nielson. The RED SCORING rates an outlet and gives scores depending on thecompliance of all the parameters. Various other activities assist the functioningof RED to achieve the overall goal of maintenance, marketing and sales of theCoca Cola product.
1. VISICOOLER: Visicooler is the chilling equipment used to keep the drinks chilled so
that it can be served in ready to drink form. In general, It is a
refrigerator . Hence it serves the dual role of chilling equipment as well
HIGH (Diamond& gold)
MEDIUM(silver)
LOW(bronze)
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as the displaying space for the products of Coca Cola. It helps the
consumers the chance or the option of looking at and ultimately buying
the variety of products the company offers.
During my training and the subsequent visits to the outlets it was not
difficult to understand the importance of visicooler. Of course it‟s
primary equipment where the products are kept but what excites me the
most is the way it is used for the purpose of display of products. The
visicooler in a way assist the consumer and hence the company in
making the process of sale and purchase an easy process.
Another important aspect of visicooler is the fact that it adds on to the
overall look of the outlet. The stylish outlook, the shuttle finish and
compact body of the visicooler provides these small outlets the much
needed appearance and look. Sometimes an outlet is very small and the
visicooler is the only item worth looking at. Some of the norm‟s are
followed in RED parameters are:-
1.Visicooler standard-
It depends upon the holding capacity of the drinksin the visicooler.There are various sizes such as
30v/s,20v/s,15v/s,9v/s,7v/s and 4v/s. A standardhas been set depending on whether the outletbelongs to the Diamond, gold or silver category orhigh,medium or low income standard.During my tenure of summer training,I found in my
areas like 30v/s in ADITYAPUR,GOLMOURI,TELCOandDIMNA.In Adityapur like ice cream parlour. Satkar hotel inGolmouri,Kolkata sweets in Telco and Manish store in Dimna .
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Visicooler in a prime position:
Prime position for the visicooler is that visicooler should be present at themost important point of the outlet. Most important point in this case is the
entrance or outside the shop. In case of eating and dinning outlets the place
visible from the main dinning area is considered as the prime position.Prime positions for the visicooler means greater visibility which means greater
awareness and hence increase in sales. Also keeping such an expensive assetinside the shop where no one can see it doesn‟t make any sense, neither to theoutlet nor to the company. In other words if the visicooler is not kept at theprime position it will serve the primary objective i.e. storage but will fail toserve the secondary objective i.e. marketing.
Purity:
Purity of visicooler means that it should contain the products of Coca Cola only . In
my market region purity was the main factor. Like the prime position,
convincing the outlets to keep their visicooler pure is not easy. Especially when
the norms for purity are very strict. Even a single item inside the visicooler
other than the Coca Cola product is considered impure. I have seen visicooler
where outlet owners keep varieties of other products like butter, chocolates,
water (not Kinley), sweets etc. Keeping Pepsi‟s product is simply not acceptable.
in my areas I had found that most of the outlets use other products in
company‟s fridge.in short I found impure.
Visicooler light
Light of the visicooler makes sure that products inside it are visible to
everyone. Though seems an ordinary aspect but is very important for the
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visibility purpose especially in night. An illuminated visicooler in night outside
the outlet is a treat to eyes.
Brand order:
There is a set pattern as to how to keep the bottles (CAN, TETRA PACK, RGB,
MOBILE, PET) inside the visicooler which flavour of the Coca Cola product
will be placed where. As per the norm its COLA (Thumbs up and then Coca
Cola), LIME (Sprite and then Limca), ORANGE (Fanta), JUICE (Maaza and
Minute made pulpy orange) and Kinley soda and water.IN Short it should be
kept in COLOZ-K.In my area,brand order was the another factor.products of
coke are hardly kept in brand order any of the outlets.
AVAILABILITY
Availability of products in the distributor point and the outlets is one of the
most important aspects that is taken care of by RED. Availability is in direct
relation with the sales of the product and is given a lot of attention by thecompany. 50 marks out of 100 to availability in RED score .The bottling plant
in Patna is the major source of the supply of product in the market. PET bottle
and MAZZA are not manufactured in Patliputra‟s plant. They are brought in
from different plant may be from pune. In Jamshedpur the supply is done
through direct sales route. Earlier the plant was set up in ADITYAPUR but due
to some circumstances it had been closed. so now the supply is totally done
from MMTC(GAMHARIA)(where the stock are dumped by the coke industry)and
then the stock are loaded and supplied to the market.
During seasons I had seen some of the issues relating to availibility of products.As we know that there is a wide gap between production point and
consumption point.As the plant is in Patna and from there the distribution is
done. And to remove the hindrance ,transportation is the only mode.
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TABLE SHOWING THE DIRECT SALES ROUTE:
ACTIVATION
Activation means the presence of advertising materials of Coca cola‟s product
in and around the outlets. The various activation materials are Flange,flex,
Glow sign board,simple boards, Table top display unit, Price communicator,
Aerial mobile hanger, Road standee e.t.c. All these materials are provided by
the company at free of cost to the retailers.
Most of the displaying materials remain outside the shop, there is a constant
threat from the antisocial elements of damage or theft. Though these materials
are not very costly but a loss is a loss anyways. During my training
period,through glowsign boards were given to some of the retailers. glowsignboards are generally given to the retailers by seeing their income
standard,outlet and the area where the shop is there. During my tenure most
of the outlets were given Flex.glow sign boards are something different then
flex.glowsign‟s are having light in it which glow during the night hours.these
are much more attractive and eye catching.
COMPANY'S
PLANT
MMTC
MARKET
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Some of the activation part is related to the display of bottles in the racks or
table top display.
flex and glowsign of coca cola
ASSISTANCE FOR RED
In order to make the RED work the way it should, Company assist the wholeconcept through various tools..
1.PERMANENT JOURNEY PLAN (PJP)-Number of RED outlets visits a day by
a MD. which is decided by the team leader.
2.NON PERMANENT JOURNEY PLAN:-It is not necessary to visit those RED
outlets but should be taken care of.
SALES PROMOTION BY COCA COLA COMPANY
Some of the sales promotion activity done by the coca cola company. During
my summer interns there are some of the sales promotion activity done in
flavours like sprite ,coke and thumsup .Coca cola company does do sales
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promotion for retailers and customers too. Various types of sales promotion
done like:-
1.Consumer sales promotion method
2.Retailers , traders and wholesellers promotion method
3.Sales force promotion method
1.CONSUMERS SALES PROMOTION METHOD:-
These are directed to customers to induce them to buy company‟s product by
some of the consumers sales promotion devices.
1. Free trials
2. Samples
3. Premium
4. Bonus stamp
5. Cash refund offer
2.RETAILERS,TRADERS AND WHOLESELLERS PROMOTION METHOD:-
Trade sales promotion is an incentive given to the middlemen to buy goods in
large quantity
from the producer and the consumer.Some of the trade promotion are:
Discount Display and advertising allowance
Store demonstration
Free goods
3.SALES PROMOTION METHOD:-
Sales promotion method are those which are intended to motivate the sales
force to increase sales. These method support the salesmen to do the job
effectively and sincerely.Some of the sales promotion methods are:-
Bonus to sales force
Sales force contests
Sales meeting conferences
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PROMOTION STRATEGIES
Sprite khol Seedha bol offer
This offer for consumer was launched by the company in mid may where it
offers free talk time worth rupees one crore (in total) with every bottle of
SPRITE. A unique code was there inside the crown which consumer was
supposed to sms at a particular number. The tool was extensively used by the
company to make the soft drink market lucrative for the customer. Various
posters and banners were posted in the market regarding this offer and a
conscious effort was done to explain the concept to the outlet of the offer.these
offer was only for the end consumers.
Thumpsup Crown- This offer was also for end customers.this offer was launced in the month
of may,where rs 1,2,10 amount was printed inside the crown and after
returning that crown he will get that amount which was printed inside
the crown.during my tenure this offer was valid.
Quantity discount
Quantity discount varies from time to time and product to product. This
tool is mostly resorted to by Coca Cola during the period when thedemand is low. For instances the Company gave two bottles absolutely
free to the retailers with one crate of soft drink. During my training I
have seen these offers given to the retailers from time to time.
Point of purchase (pop) display
Coca Cola Company supplies POP materials in large numbers to the
retailers for the purpose of proper merchandising of its products. Almost
all retail shops dealing in Coke‟s range of products posses various POPmaterials that include stickers, banners, posters, sign boards, umbrellas,
shelves etc. POP materials play an important role in promoting the sales
volume.
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Chilling equipments
Coca Cola Company provides various chilling equipments like
Visicoolers, Chest coolers and Ice boxes. These equipments are provided
free of cost to the outlets depending upon the kind of sale they have.
Time to time up gradation is also done in case of Visicooler. During my tenure I have seen the distribution of Ice boxes to the very small outlets
and installation of visicoolers in some places.
Free gifts
Free gifts like Shirts, T- Shirts, Wrist watches etc bearing company
name and logo is given to sales personnel and the distributors and
retailers.
HVO (High volume outlet)
It is kind of agreement between the outlet and company where a target is
set for the outlet in consultation with them. On achieving this annualtarget the company pays the decided amount to the outlet. These
agreements are done to increase the efficiency of outlets that already are
outlets with high volume.
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Some of the print ads of coca cola:
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Coca cola brands are:-
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SWOT ANALYSISA SWOT analysis helps find the best match between environmental trends(opportunities and threats) and internal capabilities.
A strength is a resource or capacity the organisation can use effectively to achieve its objectives.
A weakness is a limitation, fault, or defect in the organisation that willkeep it from achieving its objectives.
An opportunity is any favourable situation in the organisation'senvironment. It is usually a trend or change of some kind or anoverlooked need that increases demand for a product or service andpermits the firm to enhance its position by supplying it.
A threat is any unfavourable situation in the organisation'senvironment that is potentially damaging to its strategy. The threatmay be a barrier, a constraint, or anything external that might cause
problems, damage or injury.
In general, an effective strategy is one that takes advantage of theorganisation's opportunities by employing its strengths and wards off threatsby avoiding them or by correcting or compensating for weaknesses.
The first part of any SWOT analysis is to collect a set of key facts about theorganisation and its environment. This will include facts about theorganisation's markets, competition, financial resources, facilities, employees,inventories, marketing and distribution system, R&D;, management,environmental setting (e.g. Technological, political, social, and economic
trends), history and reputation.
The second part of a SWOT analysis is to evaluate data to determine whetherthey constitute strengths, weaknesses, opportunities or threats for theorganisation. This may be done independently by the individuals in a group,results being compared afterwards. It is important to note that any given fact
may give rise to more than one evaluation, and so to ask - " How may this factbe considered as an opportunity as well as a threat?"; "How may thisapparent strength turn out to be a weakness?"; "How does this weaknessreally represent a strength?" The answers to these and similar questions may give managers new insights into choosing appropriate strategies.
With a SWOT analysis it is useful to ask these questions:
How can we use our strengths?
How can we address each weakness?
How can we exploit each opportunity?
How can we guard against each threat?
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Advantages of SWOT
Simple and only costs time to do.
Generates new ideas to help take advantage of an organisation's
strengths and defends against threats.
Awareness of political and environmental threats allows an organisationto have response plans prepared.
Disadvantages of SWOT are:
May tend to persuade organisations to compile lists rather than thinkabout what is actually important in achieving objectives.
Presents lists uncritically and without clear prioritisation so that, forexample, weak opportunities may appear to balance strong threats.
ABOUT COCA COLA SWOT ANALYSIS OF JAMSHEDPURMARKET:-
The Coca-Cola Company (Coca-Cola) is a leading manufacturer, distributor andmarketer of Non-alcoholic beverage concentrates and syrups, in the world.
Coca-Cola has a strong brand name and brand portfolio. The Company‟s strongbrand value facilitates customer recall and allows Coca-Cola topenetrate markets. However, the company is threatened by intense competitionwhich could have an adverse impact on the company‟s market share. For cocacola company, swot can be analysed through:-
RETAILERS:
Product (which product they are selling?)
Process (how they are selling it?) Customer (to which type of customer they are selling?)
Distribution ( reach of company‟s product) Price (at what price they are selling?) Administration (and how they are managing all this?
CUSTOMERS:
Popularity(known to people or not?)
Taste, brand name and distinctive packaging(out of this what they like?)
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Brand(which brand of coke the like? PRICE(appropriately priced or highly priced?)
COMPETITOR(do the like any other competitor brand or not?)
There are internal and external factors of swot which has been analysed by meduring my tenure. they are:-
INTERNAL FACTORS OF COCA COLA IN JAMSHEDPUR ARE: Factors should
be evaluated across the organization in areas such as:
Company culture
Company image
Organizational structure
Key staff
Position on the experience curve
Operational efficiency Operational capacity
Brand awareness
Market share Patents and trade secrets
-Popularity -ISome of the external factors:
1.Strenght are: Popularity
Well known Customer loyalty Branding obvious and easily recognized
Low operating cost2.Weakness are:
Word of mouth
lack of popularity of many Coca Cola‟s brands health issues
3.Opportunity are:
Brand recognition
Many successful brands to pursue Buy out competition
4.Threat : Changing Health consiciousness attitude
Legal issues
Competition(pepsi)
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Strength:-
Coca Cola is an extremely recognizable company.Some of the strength are:
Popularity is one of its superior strengths that is virtually incomparable.
Coca Cola is known very well worldwide. It's branding is obvious and
easily recognized. Things like, logos and promos shown on t-shirts, hats,
and collectible memorabilia. Without a doubt, no beverage company
compares to Coca Cola's social popularity status. Some people buy coke,
not only because of its taste, but because it is widely accepted and they
feel like they are part of something so big and unifying. At the other end
of the spectrum, certain individuals choose not to drink coke, based
solely on rebelling from the world's idea that coke is something of suchgreat power. Overwhelming is the best word to describe Coca Cola's
popularity.
Another strength that is very important to Coca Cola is customer
loyalty. The 80/20 rule comes into effect in this situation. Eighty percent
of their profit comes from 20% of their loyal customers. Many
people/families are extremely loyal to Coca Cola. It would not be rare to
constantly find bottles and cases of a product such as coke in a house.
It seems that some people would drink coke religiously like some peoplewould drink water and milk. This is an improbable feat. Customers will
continually purchase these products, and will probably do so for a very
long time. If two parents were avid Coca Cola drinkers, this will be
passed down do their children as they grow loyal to the company. With
Coca Cola‟s ability to sell their product all over the world, customers will
continue to buy what they know and what they like Coca Cola products.
Coca-Cola has strong brand recognition across the globe. Coca-Cola as
one of the leading brands in their top 100 global brands ranking in2006. The company owns four of the top five soft drink brands in the
world: Coca-Cola, Diet Coke, Sprite , Fanta, Thumpsup and mazza.
Over the years, the company has made large investments in brand
promotions. Consequently, Coca-cola is one of the best recognized global
. The company‟s strong brand value facilitates customer recall and
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allows Coca-Cola to penetrate new markets and consolidate existing
ones.
Coca-Cola is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Coca-Colais selling trademarked beverage products since the year 1886. Thecompany currently sells its products in more than 200 countries. Thecompany‟s operations are supported by a strong infrastructure acrossthe world. Coca-Cola owns and operates 32 principal beverageconcentrates and/or syrup manufacturing plants located throughout theworld..
Weakness:
Coca Cola is a very successful company, with limited weaknesses. Howeverthey do have a variety of weaknesses that need to be addressed if they want torise to the next level.
Word of mouth is probably a strength and weakness of every company.While many people have good things to say, there are many individualswho are against Coca Cola as a company, and the products in which they produce. Word of mouth unfortunately is something that is very hard to
control. While people will have their opinions, you have to try to sway their negative views. If bad comments and views are put out to people
who have yet to try Coca Cola products, then that could produce a lost
customer which shows why word of mouth is a weakness
Another aspect that could be viewed as a weakness is the lack of popularity of many of Coca Cola‟s drinks. Many drinks that they produceare extremely popular such as Coke and Sprite but NIMBU FRESH and
PULPY ORANGE is not so popular as other brands of coke. Most areunknown and rarely seen for available purchase. These drinks do notprobably taste bad, but are rather a result of low profile or non existentadvertising. This is a weakness that needs to be looked at whenanalyzing their company.
Another weakness that has been greatly publicized is the health issuesthat surround some of their products. It is known that a popular productlike coke is not very beneficial to your body and your health. With today‟sconstant shift to health products, some products could possibly loose
customers. This new focus on weight and health could be a problem forthe product that are labeled detrimental to health.
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Opportunity:-
Coca Cola has a few opportunities in its business. It has many successful brands that it should continue to exploit
and pursue. Coca Cola also has the opportunity to advertise itsless popular products. With a large income it has the availablemoney to put some of these other beverages on the market. This
could be very beneficial to the company if they could start sellingthese other products to the same extent that they do with theirmain products.
Another opportunity that we have seen being put to use before isthe ability for Coca Cola to buy out their competition. Thisopportunity rarely presents itself in the world of business.
However, with Coca Cola‟s power and success, such a task is notimpossible. Coca Cola has bought out a countless number of drink brands. An easy way to turn their profit into your profit istoo buy out their company. Even though this may cost a vastamount of money initially, in the long run, if all goes to plan, itresults in a large profit. Also, the company will no longer need toworry about this product being part of the competition.
Brand recognition is the significant factor affecting Cokescompetitive position. Coca Cola is known well throughout 90% of the world population today. Now Coca Cola wants to get there
brand name known even better and possibly get closer and closer
to 100%. It is an opportunity that most companies will ever dreamof, and would be a supreme accomplishment. Coca Cola has anopportunity to continue to widen the gap between them and theircompetitors.
Threat:-
Despite the fact that Coca Cola dominates its market, it still has to deal
with many threat. Even though Coca Cola and Pepsi control nearly 40% of the entirebeverage market, the changing health-consciousness attitude of themarket could have a serious effect on Coca Cola. This definitely needs tobe viewed as a dominant threat. In today‟s world, people are constantly trying to change their eating and drinking habits. This could directly affect the sale of Coca Cola‟s products.
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Another possible issue is the legal side of things. There are alwaysissues with a company of such supreme wealth and popularity.
Somebody is always trying to find fault with the best and take themdown. Coca Cola has to be careful with lawsuits. Health minister could
also be looked at as a threat. Again, some people may try to exploit the
unhealthy side of Coca Cola‟s products and could threaten the statusand success of sales.
Other threats are of course the competition. Coca Cola‟s maincompetition being Pepsi, sells a very similar drink. Coca Cola needs tobe careful that Pepsi does not grow to be a more successful drink. Other
product such as juices, coffee, and milk are threats. These otherbeverage options could take precedent in some people‟s minds over Coca
Cola‟s beverages and this could threaten the potential success itpresents again.
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Competition between coke v/s pepsi
Pepsi and Coca-Cola had/have different brands of soda and other drinkscompeting with each brands of soda and other drinks competing with eachother's company in and across the country.
Flavor/type PepsiCo The Coca-Cola
Company
Dark cola Pepsi
Coca-Cola
New Coke / Coke II
(discontinued)
Diet / Low calorie
Diet Pepsi / Pepsi Light
Pepsi ONE
Pepsi Max
Diet Coke / Coca-
Cola Light
Tab
Coca-Cola Zero
Low carbohydrate
Pepsi Edge
(discontinued)
Coca-Cola C2
(discontinued)
Orange
Tropicana Twister
Slice
Mirinda
Sunkist
Kas
Crush br />Yedigün
(Turkey)
Fanta
Minute Maid
Royal Tru Orange
(Philippines)
Juices
Tropicana
Dole (refrigerated andcans only)
Minute Maid
Iced tea
Lipton (ready-to-drink
products only)
(manufactured by
Unilever)
Nestea (manufactured
by Nestle in the USA
and by Beverage
Partners Worldwide
(BPW), a joint venture
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between Nestle and
Coca-Cola elsewhere)
Water Aquafina
Dasani
Smart Water
BonaquaKinley
Ciel
Eva
Viva! (Philippines)
Turkuaz, Damla
(Turkey)
Chaudfontaine
(Belgium), Mount
Franklin (Australia),
Pump (Australia),Kropla Beskidu
(Poland), Vital (Chile),
Naturaqua(Hungary)
Namthip (Thailand)
Bankia (Bulgaria)
Root beer Mug Root Beer
Barq's
Sarsi (Philippines)
Fanta Root Beer
Sports drinkGatorade
Propel
Powerade
Aquarius
Relentless
Citrus
Teem
Sierra Mist
Mountain Dew
Mountain Dew MDX
(Discontinued)
Kas
Mello Yello
Vault
Fresca
Surge (discontinued)
Rondo (discontinued)
Lift
Sparkle (Philippines)Sprite
Vanilla-flavored
cola
Pepsi Vanilla
(discontinued) Coca-Cola Vanilla
Lime-flavored cola Pepsi LimeCoca-Cola with Lime
(discontinued)
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(discontinued) Diet Coke with Lime
Lemon-flavored cola Pepsi Twist
(discontinued)
Coca-Cola with
Lemon (discontinued)
Enhanced water Sobe Lifewater Glaceau VitaminWater
SWOT MATRIX (TOWS MATRIX)
The SWOT Matrix illustrates how management can match the opportunity by
facing your institution with its own strength and weakness to yield four sets of
possible strategic alternatives. The SWOT Matrix framework lends itself to
brainstorming to create alternative strategies that you might not otherwise
consider.
To develop strategies that take into account the SWOT profile, a matrix of thesefactors can be constructed. The SWOT matrix (also known as a TOWS Matrix)
is shown below:
SWOT / TOWS Matrix
Strengths
Weaknesses
Opportunities
S-O strategies
W-O strategies
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Threats
S-T strategies
W-T strategies
Basically four main strategies are proposed:
S-O strategies pursue opportunities that are a good fit to the companies‟
strengths. These strategies are based on strengths to take advantage of
market opportunities.
W-O strategies overcome weaknesses to pursue opportunities. These
strategies are based on overcoming weaknesses to take advantage of market opportunities.
S-T strategies identify ways that the firm can use its strengths to reduce
its vulnerability to external threats. These strategies are based on
strengths to avoid market threats.
W-T strategies establish a defensive plan to prevent the firm's weaknesses
from making it highly susceptible to external threats. These strategies are
based on overcoming/minimizing weaknesses to avoid market threats.
TOWS MATRIX OF COKE
Following is the detailed analysis of Pepsi-Cola TOWS matrix:
„WT‟ ANALYSIS
One weakness that COKE posses is that it has very strong taste it really
feels that something highly toxic going inside the body, where as the same
product of the coke is not much strong.
They also have a problem of imitators as receives complaints from
customers..
Lack of popularity for some brands of coke.
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„WO‟ ANALYSIS
They lack behind in catering the rural areas and just concentrating in the
urban areas. They should try to increase their distributions and also focus
on capturing rural areas; this will become a big opportunity for them.
The other big weakness is health issues.
„ST‟ ANALYSIS
Coke is much expensive than other competitors brands
Legal issues in market
Rival companies is a big threat for coke market
„SO‟ ANALYSIS
Large No. of diversity businesses is also its main strength as it ahs
diversity in many businesses such as coke beverages, coke foods, coke
Restaurants, and due to large number of diversity they can capture more
customer, therefore it will become such a big opportunity for coke market
in Jamshedpur.
Income class of consumers is also a strength and an opportunity for coke
market Popularity is again the biggest strength and opportunity for coke market.
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ABOUT MY TENURE
During my tenure,I was given to analyse the market of Jamshedpur to knowthe SWOT of coke market. It would be incomplete,if I would not have used theCOKE SWOT STRATEGY. To analyse this I had made sample questionnaire forretailers as well as customers.
RETAILERS:
Product (which product they are selling?)
Process (how they are selling it?) Customer (to which type of customer they are selling?)
Distribution ( reach of company‟s product) Price (at what price they are selling?) Administration (and how they are managing all this?
CUSTOMERS:
Popularity(known to people or not?)
Taste, brand name and distinctive packaging(out of this what they like?) Brand(which brand of coke the like?
PRICE(appropriately priced or highly priced?) COMPETITOR(do the like any other competitor brand or not?)
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The questionnaires are shown below:
QUESTIONAIRE (CONSUMER)
Name Age Sex: M\F
Occupation:-Professional Businessman Service
Student Any other
1. Do you prefer coca cola as a drink?Yes No
2. Which soft drink you prefer the most? (rate it according toyour preference)
Coke Sprite Fanta Thumps up
Pepsi 7up Mirinda Limca
mountain dew
3. Which juice you prefer the most?(rate it)Nimbu fresh Pulpy orange Maaza
Slice Nimbooz
4. In coca cola brand what you like the most?Brand name Taste Availability
Packaging Price Brand ambassador
5. Nimbu fresh a new launched brand in cocacola. Did youliked it?
Yes No
8. Advertisement of which coca cola you like the most?
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Thumps up Sprite Fanta
Limca Maaza Coca cola
9.How do you feel coca cola product are priced?
Extremely over priced Low priced
Appropriately priced Slightly priced
10.Is the coca cola brand are available at your arm reach?
Yes No
If no, where do you want to get it?(Location)
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QUESTIONAIRE( RETAILER)
1. AREA:
2. OUTLET NAME
3. CHANNEL:(a)convenience (b)grocery (c) e&d type1(d)e&d
type2
4. CATEGORY:(a) diamond (b)gold (c)silver(d)bronze
5. INCOME CLASS:(a)high (b)medium (c)low
6. COOLER SIZE:(a)4cc(b)7cc(c)9cc(d)15cc(e)20cc(f)30cc
7. COMPETITOR SIZE:(a)4cc(b)7cc(c)9cc(d)15cc(e)20cc(f)30cc
8. PURITY: (a)Yes (b)no
9. EXCLUSIVE/SHARED
10.
Are you satisfied with the service of coca cola during
Seasons:yes/no lean season: yes/no
11.Are you satisfied with the competitor‟s service during
the:
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Season:yes/no lean season:yes/no
12.Are you satisfied with the visicooler provided by the
company:
(a)yes (b)no
13.Are you satisfied with the visicooler‟s service:
(a)yes (b)no
14.which flavor do you sale the most?(rate it)
Thumsup coke pepsi
Sprite 7up mountain dew
Fanta Mirinda Limca
Maaza Slice MMPO
MMNF Nimbooz
15.Brand shiftment by the consumers: (a)Thumsup(b)Pepsi
16.Any suggestions/queries:
After the analysis of coke market in Jamshedpur,I found some of the issues
like
Non availabity of products during seasons
Service is not good
Customer‟s brand shiftment
Coke products price taste and packaging
Non fulfillment of benefits to retailers by the company
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SOME OF THE TV COMMERCIAL ADS OF COCA COLA BRAND
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CHART SHOWING THE SALES FIGURE OF FLAVOURS IN JAMSHEDPUR.
Sales
150
0
5
10
15
20
25
30
35
40
45
50
thumsup spritefanta
limcamazza MMNF
MMPOKINLEY
WATERCOCA
COLA
Sales 150
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CONCLUSION
Thus at last,I would like to write that coke market is developed in
Jamshedpur,but there are still some places left to be look
out.SWOT analysis helped me to find out the various parameters of
the market condition which is needed to change.SWOT factors are
internal and external but sometimes PEST also influence the
market condition.SWOT helped me to know the market condition of
coca cola. SWOT analysis has been a framework of choice among
many managers for a long time because of its simplicity and its
portrayal of the essence of sound strategy formulation - matching a
firm‟s strength,weakness,oppurtunities and threats.
Thus, it was a very good opportunity to work on the
skill of patience as I got a huge market to deal with.It helped me in
developing the kind of relation one needs to uphold in the corporate
world and also helped me in building up the right attitude.
Therefore, in the field of marketing and sales,the training period in
(HCCBPL)was a good stepping stone into the real business world.
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SOURCES OF INFORMATION
http://www.coca-cola.com
http://www.thecoca-cola company.com
http://www.google.com
http://www.wikipedia.org
http://www.ko.com
http://www.cybernoon .com
Information from the market of jamshedpur
(retail outlets)
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