Internship Report (19M)

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A.

SIP REPORT

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Executive Summary

Coca-Cola was established in 1886 and today has plants in 200 countries worldwide. Coca-Cola is also the
largest producer of non-alcoholic drinks in the world. They have taken steps to supply everyone with a taste
of their product. When they say everyone, they mean everyone including countries like Brazil, China,
Nigeria. I believe this is a great company, that with great success has taken a good idea and made it a great
one.

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Chapter 1

Introduction and Industry Overview

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INTRODUCTION
An internship is a task education, so college students in their free time can go through by using to
supplement their formal education and disclose them to the sector of the work. Internship facilitates
college students get familiar within the area which they have chosen. It is an integral platform for anyone
to gain experience in an actual workplace. Internship is a good opportunity for students to learn, to gain
experience and also to make preparation. Internship also gives an interaction for students to check and
implement the concepts they studied to use in the real time environment. Internship will also help to see
the things in a different angle which could be understood only in the real time environment. It also helps
to develop the adaptive attitude and behavior with different kinds of people and in various situations. It
gives the practical knowledge about the approach in the real world. This will also enable the student to be
prepared before facing the real world directly.
The company of internship (HINDUSTAN COCA-COLA BEVERAGES PVT LTD) falls in the segment
of Beverages under the domain of Fast-Moving Consumer Goods Industry.

1.1 INDUSTRY OVERVIEW


Fast Moving Consumer Goods (FMCG), also known as Consumer-Packaged Goods (CPG) are products
that have a quick turnover and relatively low cost. Consumers generally put less thought into the
purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant
changes through the 1990s. Many players had been facing severe problems on account of increased
competition from small and regional players and from slow growth across its various product categories.
As a result, most of the companies were forced to revamp their product, marketing, distribution and
customer service strategies to strengthen their position in the market.

Source: https://www.alliedmarketresearch.com/fmcg-market

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FMCG sector is the 4th largest sector in the Indian economy with Household and Personal
Care accounting for 50 per cent of FMCG sales in India. Growing awareness, easier access
and changing lifestyles have been the key growth drivers for the sector. The urban segment
(accounts for a revenue share of around 55 per cent) is the largest contributor to the overall
revenue generated by the FMCG sector in India. However, in the last few years, the FMCG
market has grown at a faster pace in rural India compared with urban India. Semi-urban and
rural segments are growing at a rapid pace and FMCG products account for 50 per cent of
total rural spending.

FMCG Key Market Segments


The global FMCG market is segmented based on product type, distribution channel, and
region. Based on product type it is classified as food and beverages, personal care (skincare,
cosmetics, hair care, others), healthcare care (over-the-counter drugs, vitamins & dietary
supplements, oral care, feminine care, others), and home care. The distribution channel
segment comprises of supermarkets and hypermarkets, grocery stores, specialty stores,
specialty stores, e commerce and others. By region, it is analyzed through North America,
Europe, Asia-Pacific, and LAMEA.

By Type
Food & Beverage
Personal Care
Health Care
Home Care
1.2 GLOBAL SENARIO
The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in
more than 200 countries and territories. In addition to the company’s Coca-Cola brands, our
portfolio includes some of the world’s most valuable beverage brands, such as AdeS soy-based
beverages, Ayataka green tea, Dasani waters, Del Valle juices and nectars, Fanta, Georgia
coffee, Gold Peak teas and coffees, Honest Tea, innocent smoothies and juices, Minute Maid
juices, Powerade sports drinks, Simply juices, smart water, Sprite, vitamin water and ZICO
coconut water. We’re constantly transforming our portfolio, from reducing sugar in our drinks to
bringing innovative new products to market. We’re also working to reduce our environmental
impact by replenishing water and promoting recycling. With our bottling partners, we employ
more than 700,000 people, helping bring economic opportunity to local communities worldwide.

Beverage Industry
The beverage industry refers to the industry that produces drinks, in particular ready to drink
beverages. Beverage production can vary greatly depending on the beverage being
made.ManufacturingDrinks.com explains that, "bottling facilities differ in the types of
bottling lines they operate and the types of products they can run". Other bits of required
information include the knowledge of if said beverage is canned or bottled (plastic or glass),
hot-fill or cold- fill, and natural or conventional. Innovations in the beverage industry,
catalyzed by requests for non-alcoholic beverages, include: beverage plants, beverage
processing, and packing.
Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer
from mass layoffs every time the economy starts to dip. A person may put off buying a car
but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in
a steady manner irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate
of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The
main contributor, making up 32% of the sector, is the South Indian region. It is predicted that
in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of
the biggest sectors of the Indian Economy provides up to 4 million jobs.
The global FMCG market is projected to reach $15,361.8 billion by 2025, registering a
CAGR of 5.4% from 2018 to 2025. Fast moving consumer goods (FMCG) also known as
consumer- packaged goods are products that can be bought at a low cost. These products are
consumed on a small scale and are generally available in a variety of outlets including
grocery store, supermarket, and warehouses. The FMCG market has experienced healthy
growth over the last decade because of adoption of experience retailing along with reflecting
consumers desire to enhance their physical shopping experience with a social or leisure
experience.
From the below diagram, Food and Beverages segment dominates the Global FMCG market.

Fig. 1.1

By Distribution Channel
Supermarkets & Hypermarkets
Grocery Stores
Specialty Stores
E-commerce
Others
From the below diagram, Supermarkets and hypermarkets dominates the Global FMCG
market.

Fig. 1.2

By Region
North America

U.S.
Canada
Mexico
Europe
Germany
Spain
UK
From the diagram, Asia-Pacific segment dominates the Global FMCG market

Fig. 1.3
1.3 INDIAN SCENARIO

Coca-Cola India private limited (CCIPL)


CCIPL manufactures and sells concentrates, beverage bases and syrups to the Authorized
bottlers of TCCC in India and is responsible for consumer brand marketing initiatives.,
A Company registered under Section 25 of the Companies’ Act, is a wholly owned not for
profit charitable subsidiary of CCIPL. Anandana provides monetary grants and other
assistance to civil society organizations, cooperatives, philanthropic organizations and such
others who can be suitable partners in implementing projects for social welfare. Anandana
focuses on supporting social projects in the domains of water sustainability and the spread of
new and renewable energy sources. Geographically, Anandana focuses on some of the most
backward regions of the country.
Anandana constantly aspires to ensure project execution, maintenance and sustainability
through active involvement and direct participation of the beneficiary community at the
grass- root level. Anandana is housed in the same premises as CCIPL (at the Corporate Office
in Gurgaon).
Bottling Partners

The authorized bottlers of The Coca-Cola Company prepare, package, distribute and sell
beverages to our customers and vending partners, who in turn sell our products to consumers.

1.1.1 Hindustan Coca- Cola Beverages Private Limited (HCCBPL)


Hindustan Coca-Cola Beverages Private Limited (HCCBPL) is a wholly-owned subsidiary of
TCCC, and the largest bottler in India. It is a part of The Coca-Cola Company’s Bottling
Investments Group (BIG2). 2 The BIG is one of the three major operating groups of The
Coca- Cola Company and one of the largest and most geographically diverse bottlers in the
Coca- Cola system. It was established to improve accountability and drive performance of
Company Owned & Managed Bottlers (CBOs)HCCBPL has 24 bottling plants at strategic
locations spread across the country and covers about two-thirds of the bottling franchise (by
population) in India.
HCCBPL works actively with approximately 3800 distributors across the country to place
beverage products in 1.4 Million retail outlets to provide refreshment to 25 Million
consumers every day
Franchisee Bottling Partners
The Coca-Cola System in India includes Franchisee Bottlers (FBO – licensed by TCCC) who
prepare, package, distribute and sell our beverage brands. Following is a list of such FBOs
who are located across the country:
• Amrit Bottlers Private Limited
• Bengal Beverages Private Limited
• Diamond Beverages Private Limited
• Enrich Argo Food Products Private Limited
• Kandhari Beverages Limited
• Ludhiana Beverages Private Limited
• Moon Beverages Limited
• Narmada Soft Drinks Private Limited
• Sri Sarvaraya Sugars Limited
• Superior Drinks Private Limited
• Udaipur Beverages Private Limited
• Wave Beverages Private Limited

The Coca-Cola System in India has extensive reach and inspires moments of happiness across
the country; a small volume of our beverages also exported to neighboring markets like
Nepal, Bhutan, Bangladesh and Maldives (demand driven). In the year 2013, three new
bottling plant sites became operational at:
• Chhata (Brindavan Argo Industries Limited)
• Unnao (Brindavan Bottlers Limited)
• Bidadi (HCCBPL)
From the below diagram, Locations of HCCBPL Bottling plants, Co-packers and Franchise
Bottlers in India.

Fig 1.4

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL)


About the company
HCCB – a company started in 1997 with the simple aim of making food and beverages for
the India of the 21st century. Two decades later, we are one of India’s top FMCG companies.
Only because fellow Indians, who have faith in the quality and purity of our products, pick
our beverages, 442 times per second.
The HCCB journey
Two decades of taste, tales, talent, techniques, technologies and trophies.

1997
HCCB is incorporated on 14th February
1998
Factory in Bidadi commissioned. Becomes the first factory in the Bidadi Industrial Area
Factory in Dasna becomes operational. Becomes the first factory in UPSIDC (then under a
private developer)
Factories in Vijayawada and Goa also commissioned
Project work for setting up the Bhopal Factory starts.

1999
Factory in Bhopal commissioned. Becomes the first factory operational in the AKVN
Industrial Area, Pilukhedi, MP
Construction of the Factory at Palakkad, Kerala starts
Project work for constructing factories in Wada, Kaladera (Jaipur), Siliguri and Khurda
(Bhubaneshwar), begins

2000
Factories in Wada, Kaladera (Jaipur), Siliguri and Khurda (Bhubaneshwar) are
commissioned.

2002
Time for business expansion and consolidation.
HCCB initiates work to launch juice manufacturing lines capable of hot-filling the product in
PET package
2004
HCCB inaugurates the country’s first hot-fill juice manufacturing line in factories at Chittoor
and Bareilly

2005
HCCB initiates projects to launch juice manufacturing lines that can bottle real fruit pulp in
packaged juice
2006
Introduces hi-speed lines at its factory in Wada

2007
Successfully manufactures the country’s first juice product with real fruit pulp - Minute Maid
Pulpy Orange Introduces tetrapak juice manufacturing lines in its factories in Dasna and
Ameenpur

2008
Business grows. HCCB expands manufacturing capacities at several of its factories, by
introducing additional bottling lines.
2010
Ventures into manufacturing 11 different kinds of fruit drinks and juice products under the
Minute Maid and Maaza brands
2013
Commences project work to establish its first Greenfield factory, since 2003 at Bidadi
Industrial Area, Karnataka
2014
HCCB’s second factory in Bidadi Industrial Area is commissioned
Introduces the country’s first 720 bpm (bottles per minute) line at this factory in Bidadi.

2015
Initiates a project to introduce the world’s first ASSP package

2017
World’s first ASSP beverage rolls out of HCCB’s factory in Vijayawada. Fetches HCCB global
awards for innovation
HCCB starts manufacturing the vapour distilled smart-Water at its manufacturing line in Bidadi
factory
2018
Inaugurates its 18th factory at Sananda, Gujarat.
Commences the manufacturing of its first ever juice + dairy product, with the launch of
Minute Maid Smoothie, from its factory in Vijayawada
HCCB is now one of the largest FMCG companies in India

1.4.1 The HCCB ecosystem


8000 employees
2,50,000 farmers
7,000 partners
20,00,000 retailers.
1.4 INDUSTRY STRUCTURE

Fig 1.5
Industry structure of Sales department at HCCBPL

Fig 1.6

Manufacturing unit of HCCBPL


The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and one of
the bottling operations owned by the company. The Plant has one PET line which has the
capacity of yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines which
yields 600 bottles per minute each and one Juice line which yield 155 bottles per minute. It
caters to the whole of South Karnataka through a network of more than 80 distributors. There
are three depots in Bangalore; North Depot, East Depot and Mega Depot.

Fig 1.7
From the below diagram, Manufacturing process at HCCB.

Fig 1.8
The manufacturing of the products of Coca-Cola involves the following steps:

• Water is received from the River Cauvery and it passes through the water treatment plant,
further passing through the sand filter and the activated carbon filter, so as to attain pure
cleansed water.
• In the syrup room, the concentrate received from another bottling plant situated at Pune, is
blended with the sugar syrup
• Once both the water and the final syrup are ready, they are both mixed together and sent to
the carbonator section where Carbon Dioxide is added to the mixture to form the final
product.

• On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected
and washed for the purpose of filling in the final product in it. This step does not take place in
the PET bottle line as the bottles once used are disposed.
• The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of
PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

Distribution Network
HCCBPL has a wide and well managed network of salesmen appointed for taking up the
responsibility of distribution of products to diverse parts of the cities. The distribution
channels
are constructed in such a way that the demand of customers is fulfilled at the right place and
the right time when it is needed by them.
A typical distribution chain at HCCBPL would be:
Production --- Plant Warehouse --- Depot Warehouse --- Distribution
Warehouse --- Retail Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and
every salesman is assigned to one particular route, which is to be followed by him on a daily
basis. A detailed and well- organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to
higher profits to the firm.

i) Distribution routes

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

• Key Accounts: The customers in this category collectively contribute a large chunk of the
total sales of the Company. It basically consists of organizations that buy large quantities of a
product in one single transaction. The Company provides goods to these customers on credit,
payments being made by them after a certain period of time i.e. either a month of half a
month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.
• Future Consumption: This route consists of outlets of Coca-Cola products, wherein a
considerable amount of stock is kept in order to use for future consumption. The stock does
not exhaust within a day or two, instead as and when required stocks are stacked up by them
so as to avoid shortage or no availability of the product. Examples: Departmental stores,
Super markets etc.
• Immediate Consumption: The outlets in this route are those which require stocks on a daily
basis. The stocks of products in these outlets are not stored for future use instead, are
exhausted on the same day and might run a little into the next day i.e. the products are
consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions
etc.
• General: Under this route, all the outlets that come in a particular area or an area along with
its neighboring areas are catered to. The consumption period is not taken into consideration in
this particular route.
ii) Distribution system

• Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct
control over the activities of sales, delivery, and merchandising and local account
management at the store level.
• Indirect distribution: In indirect distribution, an organization which is not part of the Coca-
Cola system has control on one or more of the distribution elements (Sales, delivery,
merchandising and local account management)
• Merchandising: Merchandising means communication with the consumer at the point of
purchase to convey product benefit, value and Quality. Sales people and delivery personnel
both have this responsibility. In certain locations special teams who go into business locations
to specifically merchandise our products.

iii) Departments involved in distribution process

The Distribution process mainly consists of three departments:


• Distribution Department: It appoints distributors and establishes a distribution network,
processes approved sale orders and prepares invoices, arranges logistics and ship products,
co- ordinates with distributors for collections and monitors distribution stocks and their set-
up.
• Finance Department: It checks credit limits and approves sales orders in compliance with
the credit policy followed by the firm, records collections from distributors, periodically
reconciles outstanding balances from distributors, obtains balance confirmation from
distributors and follows up outstanding balances.
• Shipping or Warehousing Department: It dispatches goods as per approved by order,
ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out
area and updates warehouse stock records in a timely manner.
From the below diagram, Business Model of Coca-cola India- Division
Fig 1.9
1.5 INDUSTRY OUTLOOK

What they do

Manufacturing
Our 18 factories, spread across India, manufacture the beverages that India wants. And if it is
about India, we better make the best. With stringent processes, world-class machines, state-
of- the-art equipment, and the best packaging materials, we make 55 different beverage
products in multiple categories.
Packaging
At a very basic and functional level, they help keep your favorite beverages, safe, hygienic
and consistent. At their most evolved, they can be ambassadors of goodwill and messengers
of change. Packages are an integral part of the HCCB story.

Distribution
HCCB – where warehousing and logistics integrates seamlessly with manufacturing and
planning. Because when it is about serving 442 beverages per second, across 493 districts,
through 20 lakh retailers, supply chain and distribution capability holds the mirror on us.

How do they do it
Technology that makes a difference
Several factories at HCCB use Ergo Bloc-a small idea that has made a big change at our
factories. This technology has helped save electricity and water, while increasing speed and
maximizing output.
Earlier, the process required the blown PET bottles to be conveyed through long air rails
which involved consumption of electricity. Also, the filled bottles were warmed with hot
water spray thus consuming a good amount of water.
But with Ergo Bloc technology, the bottles do not have to be passed through the air
conveying rails, and within a block, they reach the filling machine. Subsequently, the filling
happens at a much higher temperature (15-17 degrees Celsius) than the earlier process. Thus,
the product warming process has been eliminated, which saves a good amount of water.

The process of manufacturing happiness


HCCB’s factories are the source of the consistent great taste you have been enjoying for
decades now. These factories ensure the quality and consistency in the beverages you
consume. And because this is a huge responsibility, the factories are set up with the utmost
care and precaution with a lot of planning put behind the setting up.
The factories are planned and set up keeping an end-to-end balance in mind. It begins right
from the demand, transportation and distribution to the procurement, storage, manufacturing
Digitization
Digital is at the heart of a large size operation. But it can always be in the danger of becoming
everything and at times nothing.

 Digital everywhere … even in procuring display racks


HCCB uses the power of digital to effectively and efficiently procure the racks, through an E-
Auction process on the Ariba platform.
In the traditional process, obtaining details of suppliers and their quotes can be a long
process. Instead, HCCB uses the E-Auction platform, where after identifying the potential
suppliers and through standardizing material specifications, the suppliers are asked to bid.
Since the E-auction platform allows suppliers with their unique ID, it becomes quick and
easy to evaluate the bids and finalize the lowest bidder. The entire process of evaluation can
get over in an hour where in traditional processes; it would take three or more days to just
evaluate the bids.
Also, the E-auction process is transparent and real-time, which further facilitates negotiations
and discussions. “The E-bidding provides equal opportunities to the suppliers for
participation in bidding and receiving the order.

 Digital... Selling

Market Growth Representatives (sales team) of HCCB follow a standard protocol. Visit the
retailers as outlined in their journey plan for the day, take orders, get a first-hand
understanding of the demand, merchandise the outlets and ensure that company products are
arranged and showcased properly.
But before they get to the market, MGRs are given a two-week training to enhance their
familiarity with the digital ecosystem. They are also trained on the use of mobile tablets and
the Sales Force Automation (SFA) tool, therein.

With a connected mobile tablet in hand, blessed with the SFA tool, MGRs are able to offer
the best deals to their customers (retailers). Also, if there is any customer about who he needs
to know more, it is just a click away on his always-connected tablet.
HCCB’s customers find it a great way of working too. Because when MGRs have completed
taking an inventory of all the products that are needed by the retailer, the final and margin for
the customer is displayed on their tablet screen.

Manifesto for growth


i) Values

The values that the employees in the Company are expected to keep up to and work by
regularly are as follows:
• LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and
zeal, to deliver outstanding results.
• PASSION: To be deeply committed and display drive and energy in the quest to deliver
• TEAMWORK: To unite for greater strength and work collectively as a group towards the
achievement of common goals.
• OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the
lowest appropriate level.
• ACCOUNTABILITY: To be individually and transparently accountable to our colleagues
for delivering agreed targets and goals.
ii) Vision

To be the best Sales & Distribution Company for consumer products in India connecting
people and the products of their choice.
iii) Mission

Enriching customer-focused employee- friendly profitable sustainable and socially responsible


business in India.
iv) Quality policy

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

CSR Activities
Educating Communities in Bidadi
In an initiative to support our SHG (Self Help Group) members in generating more income
through various business ventures, HCCB organized EDP (Entrepreneurship Development
Program) training in Bidadi recently. HCCB joined hands with CEDOK (Centre for
Entrepreneurship Development of Karnataka) for 30 SHG members from Jogardoddi,
Byravanadoddi, Abbanakuppe and Medanahalli.

During the session, the participants were given insights on the skills required to become an
entrepreneur and were also informed about schemes available in various departments to start
their businesses. HCCB has supported SHGs in various initiatives such as Papad Making,
Mushroom Cultivation, and Candle Packing.
From the below image, HCCB educating communities in Bidadi.
HCCB also organized Wash, a program to inculcate the habit of having clean and
hygienic hands
To drive awareness among the school children in the area of hygiene, HCCB also organized
WaSH, a program to inculcate the habit of having clean and hygienic hands in the
Abbanakuppe colony primary school for both Primary and High School. Leading the session,
Dr Savitha educated the students on hand and oral hygiene, explaining the importance of
maintaining hygiene and why it is essential. Post the session, an oral check was conducted for
70 children.
From the below image, HCCB organized WASH program.
CHAPTER 2

COMPANY OWERVIEW
2.1 COMPANY OWERVIEW

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

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name and
penned “Coca-Cola” in the unique flowing script that is famous worldwide even today. He
suggested that “the two Cs would look well in advertising.” The first newspaper ad for Coca-
Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and
popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on
store awnings, with the suggestions “Drink” added to inform passersby that the new beverage
was for soda fountain refreshment.
By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr.
Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been
distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton,
grossed
$50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the
beverage he created. He gradually sold portions of his business to various partners and, just
prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an
entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights
and complete ownership and control of the Coca-Cola business. Within four years, his
merchandising flair had helped expand consumption of Coca-Cola to every state and territory
after which he liquidated his pharmaceutical business and focused his full attention on the
soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank
Robinson and two other associates, Mr. Candler formed a Georgia corporation named the
Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was
registered in the United States Patent Office on January 31, 1893. The business continued to
grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas,
Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following
year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Candler
announced in his annual report to share owners that “Coca-Cola is now drunk in every state
and territory in the United States.”
As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new
building erected in 1898 was the first headquarters building devoted exclusively to the
production of syrup and the management of the business. In the year 1919, the CocaCola
Company was sold to a group of investors for $25 million. Robert W. Woodruff became the
President of the Company in the year 1923 and his more than sixty years of leadership took
the business to unsurpassed heights of commercial success, making Coca-Cola one of the
most recognized and valued brands around the world.

History of bottling
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early
growth was impressive, but it was only when a strong bottling system developed that Coca-
Cola became the world-famous brand it is today. Year wise bottling history is mentioned
below:

Year 1894: A modest start for a bold idea


In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called
Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola
to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa
Griggs Candler, who owned the Company. Candler thanked him but took no action. One of
his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain
sales.

Year 1899: The first bottling agreement


Two young attorneys from Chattanooga, Tennessee believed they could build a business
around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B.
Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for
a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.
Years 1900-1909: Rapid growth
The three pioneer bottlers divided the country into territories and sold bottling rights to local
entrepreneurs. Their efforts were boosted by major progress in bottling technology, which
improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only during hot-weather
months when demand was high.

Year 1916: Birth of the Contour Bottle


Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A
group representing the Company and bottlers asked glass manufacturers to offer ideas for a
distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won
enthusiastic approval. The Contour Bottle became one of the few packages ever granted
trademark status by the U.S. Patent Office. Today, it’s one of the most recognized icons
world

In the 1920s: Bottling overtakes fountain sales


As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. ideas
and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few
years later, open-top metal coolers became the forerunners of automated vending machines.
By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion


Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the
Company began a major push to establish bottling operations outside the U.S. Plants were
opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the
time World War II began, Coca-Cola was being bottled in 44 countries.
In the 1940s: Post-war growth
During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General Eisenhower's
base in North Africa. Many of these war-time plants were later converted to civilian use,
permanently enlarging the bottling system and accelerating the growth of the Company's
worldwide business.

In the 1950s: Packaging innovations


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

In the 1960s: Introduction of new brands


Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello
were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by
PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet
consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers


Advancement in technology led to global economy, retail customers of The Coca-Cola
Company merged and evolved into international mega chains. Such customers required a new
approach. In response, many small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a number of bottler consolidations to
assure that its largest bottling partners would have capacity to lead the system in working with global
retailers

In the 1990s: New and growing markets


Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century: Coca-Cola today


The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as consumers seek brands that honor local identity
and the distinctiveness of local markets. As was true a century ago, strong locally based
relationships between Coca-Cola bottlers, customers and communities are the foundation on
which the entire business grows.

Manifesto for growth:


i) Values
Coca-Cola is guided by shared values that both the employees as individuals and the
Company will live by; the values being:
• LEADERSHIP: The courage to shape a better future
• PASSION: Committed in heart and mind
• INTEGRITY: Be real
• ACCOUNTABILITY: If it is to be, it’s up to me
• COLLABORATION: Leverage collective genius
• INNOVATION: Seek, imagine, create, delight
• QUALITY: What we do, we do well

ii) Mission
• To Refresh the World... In body, mind, and spirit
• To Inspire Moments of Optimism... Through our brands and our actions
• To Create Value and Make a Difference... Everywhere we engage.

iii) Vision for sustainable growth

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


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

•PORTFOLIO: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples’ Desires and needs.
• PARTNERS: Nurturing a winning network of partners and building mutual loyalty.
• PLANET: Being a responsible global citizen that makes a difference.

The Coca-Cola Company (TCCC) is the world’s largest beverage company, refreshing
consumers with more than 500 sparkling and still beverage brands. Globally, TCCC is the
No. 1 provider of sparkling beverages, ready-to-drink coffees, juices and juice drinks. While
we are simply viewed as ‘Coca-Cola’, globally, the Coca-Cola System operates through
multiple local channels; the ‘Coca-Cola System’ is not a single entity from a legal or
managerial perspective.
• TCCC re-entered the Indian markets post the economic liberalization of 1991 and established
Coca-Cola India Private Limited (CCIPL) as its wholly-owned subsidiary in 1992.Entities
comprising the Coca-Cola System in India and brief descriptions of their operations are
presented below.

• From the below diagram, Coca-Cola system in India is of CCIPL, HCCBPL, FB and
Anandana.

Fig 1.10
2.2 FINANCIAL PERFORMANCE

For the six months ended 26 June 2020, Coca-Cola Co revenues decreased 16% to $15.75B. Net
income increased 6% to $4.55B. Revenues reflect Bottling Investments segment decrease of
24% to $2.92B, Europe, Middle East & Africa segment decrease of 20% to $2.86B, Global
Ventures segment decrease of 29% to $868M. Net Income benefited from Corporate segment
loss decrease of 36% to $388M. Dividend per share increased from $0.79 to $0.81.

 
Income Statement KO
Trailing Twelve Months
 
Gross margin TTM 60.04% Most Recent Quarter

Operating margin TTM 27.64%

Net Profit margin TTM 26.83%

Return on Investment TTM 14.78%

Jun 26, Mar 27, Dec 31, Sep 27,


Title
2020 2020 2019 2019

Total Revenue 7,150 8,601 9,068 9,507

Gross Profit 4,137 5,230 5,502 5,740

Operating Income 1,924 3,300 2,242 2,021

Net Income 1,779 2,775 2,042 2,593


2.3 PRODUCTS
2.4 SWOT Analysis of HCCBPL

STRENGTHS – Internal Strategic


Factors
Strong brand identity – Coca-Cola is a highly popular brand with a unique brand identity. Its
soft drinks are the most-selling drinks in history.
Highest brand equity – Coca-Cola is undoubtedly one of the most renowned brands with the
highest brand equity. It was also awarded ‘highest brand equity award’ in 2011 by Interbrand.
Extended global reach – It is sold in more than 200 countries with 9 billion servings per day
of Company products. It has introduced more than 500 new products globally. Some of these
are variations of Coca-Cola beverage, like Coco Cola Vanilla and Cherry Coca-Cola. Its
brands are known to touch every lifestyle and demography.
Greatest brand association and customer loyalty – Coca-Cola is considered one of US’s most
emotionally-connected brands. This valuable brand is associated with ‘happiness’ and has
strong customer loyalty. Customers can quickly identify their particular taste. Finding its
substitutes is difficult for them. Moreover, Coca-Cola and Fanta have a huge fan following
than other beverage names in the industry.
Largest Brand Valuation – Coca-Cola is listed as the 3rd Best Global Brand on Interbrand’s
annual ranking. Having an estimated brand value of $79.96 billion, it has retained the top
position for many years.
LOW COST OF OPERATIONS: The production, marketing and distribution systems are
very efficient due to forward planning and maintenance of consistency of operations which
minimizes wastage of both time and resources leads to lowering of costs.
Dominant Market Share – Out of Coca-Cola and Pepsi, the only two largest manufacturers of
soft drinks in the beverage segment, Coca-Cola has the largest market share. Coke, Sprite,
Diet Coke, Fanta, and Maaza are the highest growth drivers for Coca-Cola.
Unparalleled distribution system – Coca-Cola has the most efficient and most extensive
distribution network in the world. The company has nearly 250 bottling partners globally.
Acquisitions – Coca-Cola acquired AdeS in 2016. AdeS is the largest soy-based beverage
brand in Latin America. Through this acquisition, Coca-Cola expanded its ready-to-drink
beverage portfolio.
WEAKNESSES- Internal Strategic Factors
Aggressive competition with Pepsi – Pepsi is the biggest rival of Coca-Cola. Had it not been
Pepsi, Coca-Cola would have been the clear market leader in the beverage.
Product diversification – Coca-Cola has low product diversification. Where Pepsi has
launched many snacks items like Lays and Kurkure, Coca-Cola is lagging in this segment. It
gives Pepsi leverage over Coca-Cola.
Health concerns –Carbonated drinks are one of the major sources of sugar intake. It results in
two grave health issues – obesity and diabetes. Coca-Cola is the biggest manufacturer of
carbonated beverages. Many health experts have prohibited the use of these soft drinks. It is a
controversial issue for the company. However, Coca-Cola hasn’t devised any health
alternative or solution for this problem yet.
SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND
ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried out on a small
scale and due to Government restrictions and ‘redtapism’, the Company finds it very difficult
to invest in technological advancements and achieve economies of scale.

OPPORTUNITIES– External Strategic Factors


• LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is
very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per
cent share of the soft drinks market; this includes a 42 per cent share of the cola market.
Other products account for 16 per cent market share, chiefly led by Limca. The company
appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover
one lakh outlets for the coming summer season and this also covered 3,500 new villages. In
Bangalore, Coca-Cola amounts for 74% of the beverage market.
• EXPORT POTENTIAL: The Company can come up with new products which are not
manufactured abroad, like Maaza etc. and export them to foreign nations. It can come up with
strategies to eliminate apprehension from the minds of the people towards the Coke products
produced in India so that there will be a considerable amount of exports and it is yet another
opportunity to broaden future prospects and cater to the global markets rather than just
domestic market.
• HIGHER INCOME AMONG PEOPLE: Development of India as a whole has led to an
increase in the per capita income thereby causing an increase in disposable income. Unlike
olden times, people now have the power of buying goods of their choice without having to
worry much about the flow of their income. The beverage industry can take advantage of
such a situation and enhance their sales.
Introduce new products and diversify its segments – Coca-Cola has the opportunity to
introduce new offerings in health and food segments just like Pepsi. It can contribute to their
revenue, and they can branch out from carbonated drinks.
Increase presence in developing nations – Many regions with hot climate have the highest
consumption for cold drinks. Thus, increasing presence in such locations can be excellent –
Middle Eastern and African countries are a good example.
Bring advanced supply chain system – Coca Cola’s business is entirely dependent upon
logistics and supply chain. Transportation costs and fuel prices are always on the rise. Thus,
coming up with some advanced and improved systems for distribution can be an opportunity.
Packaged drinking water – Coca-Cola owns several packaged drinking water brands like
Kinley. There is a great potential for expansion in this segment for Coca-Cola. There is an
opportunity to expand and bring more healthy drinks in the market to avoid people’s
criticism.

THREATS– External Strategic Factors


• IMPORTS: As India is developing at a fast pace, the per capita income has increased over
the years and a majority of the people are educated, the export levels have gone high. People
understand trade to a large extent and the demand for foreign goods has increased over the
years. If consumers shift onto imported beverages rather than have beverages manufactured
within the country, it could pose a threat to the Indian beverage industry as a whole in turn
affecting the sales of the Company.
• TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety
of regulations at each stage on the consequence from production to consumption. When a
license is issued, the production capacity is mentioned on the license and every time the
production capacity needs to be increased, the license poses a problem. Renewing or updating
a license every now and then is difficult. Therefore, this can limit the growth of the Company
and pose problems.
• SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not
without its problems: Low per capita disposable incomes that is half the urban disposable
income; large number of daily wage earners, acute dependence on the vagaries of the
monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor
roads; power problems; and inaccessibility to conventional advertising media. All these
problems might lead to a slowdown in the demand for the company’s products.
Water usage controversy – Coca-Cola has faced many criticisms over its water management
issue. Many social and environmental groups have claimed that the company has a vast
consumption of water in water-scarce regions. Besides, people have alleged that Coca-Cola is
polluting water and mixing pesticides in water to clear contaminants.
Packaging controversy – Greenpeace censured Coca-Cola in its published report in 2017 for
its use of single-use plastic bottles. It has also been criticized over its recycling and renewable
sources.
Direct and indirect competition – Although direct competition from Pepsi is clear in the
market, however, there are many other companies which are indirectly competing with Coca-
Cola. Starbucks, Costa Coffee, Tropicana, Lipton juices, and Nescafe, are the indirect
competitors of Coca-Cola which can threaten its market position.

Competitors of HCCBPL:
The competitors to the products of the company mainly lie in the non-alcoholic beverage
industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:

PepsiCo

The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company never ends for
the World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi,
Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana
orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole
juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold together, a market share of
95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.

Nestle

Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk
products, Baby foods and Chocolates. But the iced tea that is Nestea which has been
introduced into the market by Nestle provides a considerable amount of competition to the
products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst
quencher and it is healthier when compared to fizz drinks. The flavored milk products also
have become substitutes to the products of the company due to growing health awareness
among people.
Dabur

Dabur in India, is one of the most trusted brands as it has been operating ever since times and
people have laid all their trust in the Company and the products of the Company. Apart from
food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit
juice. These products give a strong competition to Maaza and the latest product Minute Maid
Pulpy Orange.
Patanjali

Patanjali Ayurveda Limited is an Indian consumer goods company. The company


manufactures mineral and herbal products. According to CLSA and HSBC, Patanjali is the
fastest growing FMCG company in India. It is valued at ₹30 billion (US$430 million) and
some predict revenues of ₹5,000 crore (US$720 million) for the fiscal 2015–16.Patanjali
declared its annual turnover of the year 2016-17 to be estimated ₹10,216 crore (US$1.5
billion).[11] It was listed 13th in the list of India's most trusted brands (The Brand Trust
Report) as of 2018, and ranks first in FMCG category.
Recommendations based on SWOT Analysis
Based on the above SWOT analysis of Coca-Cola, we can conclude that Coca-Cola has a
definitive market position in the Beverage industry. However, it is recommended to bring
more innovative- changes.

Some recommendations are explained as follows:

 Stepping into the food market – Coca-Cola needs to introduce new products in snacks
and food segments.

 Focusing on health-related matters – It should bring some solution to address the


rising health concerns from social activists.
 Improving its water management system and dealing with the criticisms from
environmental agencies.

 Expanding into developing countries with humid temperatures – There are many
products of Coca-Cola like Fuze Tea, Dasani and Hi-C which aren’t distributed in
many developing countries. Coca-Cola needs to increase the distribution of such
products.

 Increasing the distribution of packaged drinking water like Kinley.

 Working on sustainability and green marketing It can improve its brand image in the
market
FMCG in India – Major Players
Britannia India ltd
Dabur India ltd.
Marico
Nirma ltd.
Cadbury India ltd
Nestle
Cargill
Coca-cola
Colgate-Palmolive India
Heinz co.
Unilever
Nestle
Pepsi co.
Jyothy Laboratories
Procter & Gamble
Samsung
LG
Haier
Sony
Whirlpool
IFB
TCL
Electrolux
Videocon

Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer
from mass layoffs every time the economy starts to dip. A person may put off buying a car
but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in
a steady manner irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate
of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The
main contributor, making up 32% of the sector, is the South Indian region. It is predicted that
in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of
the biggest sectors of the Indian Economy provides up to 4 million jobs.
The global FMCG market is projected to reach $15,361.8 billion by 2025, registering a
CAGR of 5.4% from 2018 to 2025. Fast moving consumer goods (FMCG) also known as
consumer packaged goods are products that can be bought at a low cost. These products are
consumed on a small scale and are generally available in a variety of outlets including
grocery store, supermarket, and warehouses. The FMCG market has experienced healthy
growth over the last decade because of adoption of experience retailing along with reflecting
consumers desire to enhance their physical shopping experience with a social or leisure
experience
2.5 OVERVIEW OF DIFFERENT DEPARTMENTS

There is a total of five mainly departments at Coca-Cola Company which are Production
department, Industrial Relation department, Sales and Marketing department, Human Resources
department, and Finance and Accounting department. Each department has their own functions
and responsibility toward the company. Production department is in charge for the overall
production of the Coca-Cola Company. Industrial Relations department is in charge for handling
with problems connected to the operational surroundings of the staff and the matter linked to the
labor unions. Sales and Marketing department is accountable for the producing the goods
obtainable in the market and to deal with the problems associated to the advertisements of the
goods. Human Resources department is in charge for looking the proficient pool of workers,
choosing the professionals and make them pleased so that they should remain faithful to the
company. Finance department deals with overall costing and pricing of the goods. They also deal
with the trade in correlated concern of the company. Accounting department lend a hand to the
sales department in making bill of lading and payroll entries.

COMMERCIAL DEPARTMENT
The key center of business operations. By Market-based Culture, at CCBIL, the Commercial
Department plays its role of key center of business operations. In addition to creating impressive
marketing campaigns, the Commercial Department is also responsible for the implementation of
effective markets, management of optimal sales tools, development of latest products and all
these activities are under the strength analysis of accurate data. Keep trying to improve CCBIL
as a total Beverage Company in Indian markets.

SALES DEPARTMENT
Indomitable, hardworking warriors. The sales department always try to satisfy the customer and
consumer needs by improving the engagement level with them, implementation of effective
markets at stores and maintaining its sales schedules to reach the Coca-Cola's goal

SUPPLY CHAIN DEPARTMENT


Both good production and excellent distribution, operation. Thanks to the devotion and accuracy
of the supply chain department, Coca-Cola's products have been produced and supplied with
quality and consistency while maintaining a safe and good operation for environment and
community. By the partnership among Departments of Planning, Preparation, Production,
Safety, Quality, Logistics and Project; The Supply Chain Department always ensure to provide
market growing demands with full products, timely and fully delivery the lowest cost and
highest quality products to customers, and ensure the infrastructure and system effectiveness for
a good management of asset cycle.
FINANCE DEPARTMENT
The Finance Department assists the company in making number-based decisions by providing
accurate information about financial statements, analyses and consultations. We turn such
numbers into meaningful information for useful analyses as well as consultations, besides, we
ensure a close management, risk control and insurance, and full processes to minimize risks and
maintain the system sustainability.

HR DEPARTMENT
We do not develop business; we do develop human and they do this. With important contribution
to building and developing human, assets and the most essential foundation of the company, the
HR Department always ensures to achieve human goals in business operations by HR and
organizational structure Planning, Attract and Develop Talents, Manage HR Policy,
Administration, Schedules and other staff activities. By strategic connection and partnerships,
the HR Department is able to well and effectively recruit, develop and retain its Human
Resources; Create and maintain a fun, good, safe and effective workplace to maximize the
human and organization potentials as well, turn CCBVL into one of the most popular employers
in market.

Fig 1.11
2.6 FUTURE OUTLOOK

The forward earnings valuation analysis is only meaningful if these companies deliver on
their growth expectations. Over-promising and under-delivering has been the way of coca
cola for the past three years. That said, new CEO Doug daft has been shaking things up
internally in

Order to right the ship. On Thursday, coca -cola announced that its first – quarter unit case
volume (the company’s standard measure of beverage shipments) would grow 4-5%. The
company is counting on accelerating growth in the remaining quarters of this year in order to
meet its full -year 2001 target of 6-7% unit case volume growth. One can’t help but be jaded
by the fact that coke’s sales have grown only 4.3% annually since 1998.
HCCPBL on 12th February 2000 at Bidadi. Almost 400 persons were present for this
auspicious occasion. The Bidadi unit is spread over an area of 15 acres. This is the state-of-
the-art bottling facility with four lines one of which is a pet line. The plant can operate at a
capacity of 1550 bottles per minute and it has distinction of being the largest plant of its kind
in India this is the first pet plat in the system in India to secure single penalty status in the
SLP audit.
The number one juice brand in India, where also rising to the number one position in the
category in south Asia. Continues to see accelerated growth in the market, and is on track to
become the sports drink category leader in India by 2021.
The company follows the policies of the basic coca- cola company, Atlanta and also by the
Indian headquarters, Gurgaon.
CHAPTER 3
SIP PROJECT PROFILE
3.1 PURPOSE OF THE STUDY
An internship is on-the-job training for academic students, to supplement their formal
education and expose them to the world of work. Internships offer to expand familiarity in
them choose area of work, to find out what they have an importance in a specific line of
business, develop professional network links, build interpersonal skill.
This project report gives a short description about the internship which was carried out as a
part of the MBA program in “Hindustan Coca-Cola Beverages India private limited” during 2
months.

3.2 STATEMENT OF THE PROBLEM


The research question is an answerable inquiry into a specific concern or issue. It is the initial
step in a research project. The 'initial step' means after you have an idea of what you want to
study, the research question is the first active step in the research project.

The research will attempt to answer the following questions:


 The company is thus viewed as lacking in this capacity to appreciate its own workers.
 The company should therefore adopt mechanisms that will oversee it improving its
internal image.
 Manage the resources that are already employed in the organization.
 Advertisement material is not available in the right time at the right place

3.3 OBJECTIVE AND SCOPE


The general objective of the study is to determine the effect of human resource planning on
the performance of HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED.
The specific objectives are:

● To determine the effect of appreciation on employee commitment

● To determine if all the resources employed in the organization is properly managed

● To determine if offering new drinks that provide health benefits like hydration and
nutrition

● To determine the effect advertising


Scope of the Study

The study will focus on assessing the effect factors like appreciation, advertising and
determine the effect of managing the resource properly in HINDUSTAN COCA-COLA
BEVERAGES PRIVATE LIMITED
The target population is the top management staffs of HINDUSTAN COCA- COLA
BEVERAGES PRIVATE LIMITED. The study will adopt the simple random sampling
technique. The geographical location of the study will be HINDUSTAN COCA-COLA
BEVERAGES PRIVATE LIMITED

3.4 WORK DONE IN THE COMPANY

 I began my first day of internship with a tour of the Admin office and introductions to
officials and associates. I had a meeting with my company mentor and we discussed
my schedule for the upcoming days. I reviewed departmental polices, rules and
regulations
 I have gone through the various activities performed by the HR department of the
Organization. I have analyzed various Job Descriptions and Job Specifications for
specific Job Titles. What are the strategies to get plenty of applications so that it could
lead to successful selection process?
 I was told to Interview candidates through Phone call. I have asked questions about
their qualification, personal interests, goals etc. It was a wonderful experience
 My Company mentor explained about how and on what basis Compensation is
assigned. About how much there is variation in the pay scale for the Skilled, Semi-
skilled and Unskilled employees. I analyzed the compensations given for the months
of January, February, March and April. I got to know that Basic makes a huge
difference in the Compensation
 HR department has organized cake cutting ceremony for the employees who had their
Birthday in the month of May. I started making my Report based on my observation
and the information I collected
 Every year, health checkup is conducted for the employees in the organization. I
assisted HR department in order to conduct the checkup for employees. Checkup was
done on employee's Body mass index, Blood pressure (BP), Sugar levels. I collected
the data based on the checkup and entered the data
 I assisted HR Manager in filling up new employees details in”Ministry of Skill
Development and Entrepreneurship.” I have collected information from the new
employees regarding their personal details, educational background and the necessary
documents to be sent as it is mandatory so as to coordinate all skill development
efforts throughout the country
 My company mentor explained on what basis the compensation is given, difference in
the compensation based on the experience, work they do, attendance etc. I understood
that basic pay is very important for a good salary. I analyzed on how much
compensation is given to positions like Junior house boy, Shift supervisor, Facility
executive of various departments for the month of January, February, march, April
and May. This is to ensure that there is no mistake in the data. Compensation is
calculated in the following systematic way and multiplied according to the number of
days the employee is present

Basic Salary
D.A. (Special Allowance)
Basic + D.A. – A
HRA
Conveyance
Supplementary Allowance
Total Salary – B
Washing Allowance
Bonus (8.33%) on Basic + DA
Leave Salary -18 Days PA
Total Gross Salary – C
PF (13.15%) on Basic + DA
ESIC (4.75%) on Total Gross
Total-D
Uniform + Safety Shoes
CTC
Management Fees @ 8%
Total Unit Rate
Current CTC
D/f Amount per month
Hike In %
3.5 METHODOLOGY
The study was conducted using Questionnaire designed by me and approved by the HR Manager
of HCCBPL.

3.6 DATA COLLECTION, INTERPRETATION AND ANALYSIS

The data was collected using questionnaire, and it was filled by my friends who work in
different organization, it was also filled by college students and some random public.

Statistical tools used

The data was analyzed using Microsoft Excel.


Descriptive analysis and inferential analysis were conducted to test the hypothesis

Research Hypothesis
The following hypothesis will be tested during the course of the research
CHAPTER 4
KEY LEARNINGS AND RECOMMENDATIONS
4.1 OBSERVATIONS
The coca cola company is one of the most renowned beverage companies in the world today. In
fact, according to Regassa & Corradino, coca cola ranks as the largest soft drink company in
the world today. It is guided by its strong core values and mission that is embedded in its
cultural statements. The company is guided by a number of strong values and a portfolio that
has span years of quality maintenance and a winning trust. This has been safeguarded and taken
into great expectation by members who are ever willing to achieve the best in their work.
One of the core values of the company states that the employees and the entire fraternity work
with determination of heart and mind. This is a great policy that has seen it grow from the low
levels and compete on an international platform. Another belief that is postulated by the
company is a strong leadership scheme and well-trained personnel who work with a
collaborative spirit, real in decisions and of focus to change the future.
This forms the basic fabric upon which the company operates. Its grasp and understanding of
the market, dedication to maintain quality and the prospect of maintaining a long-term
relationship augurs well with all members of its working and task force. This is a major
advantage to a company which is bound to expand while at the same time expunging low
quality competitors. The diversity of cultures and upholding of integrity also serve the purpose
if holding the company into one piece that rotating on the same angulations (Webmaster, 2012).
Diversity and inclusiveness ensure integrity and a permanent focus on the work that members
do. The members of staff also understand that it is up to their responsibility to work and uphold
integrity. Without this, there would be no major undertakings being realized by this rich
oligarchic beverage giant.
Coming to the product observation. First off Diet Coke and Coke Zero.  We drink it because the
marketing claims better health. These products have less calories and less sugars then the real
thing but the 'same' taste. Of-course with that logic why even sell the original but I'll keep
moving on. So, in order to give you less calories and make a product healthier I would assume
the product would take out some ingredients, right?  Let's take a look
Between regular Coke and Diet Coke High Fructose Corn Syrup (sugar) has been taken out and
Aspartame (sugar substitute), Potassium Benzonate and Citric Acid have been added.  If you
drink Diet Coke it would be worth your while to look up those ingredients.  Ok... so less
calories... more ingredients... hmmm. 

Now going on to Coke Zero we have added and replaced some ingredients I can't pronounce but
sound like something I used in my high school Chemistry class.  If this doesn't set off some
alarms, I don't know what does.  

So, in order to lose a few calories, I am replacing those calories with some kind of chemicals?  I
know how I feel about this but the real question is, "how do you feel about this?"  And are those
chemicals worth 140 calories?   

Well what about regular Coke and Vanilla Coke, let's compare those two!  Vanilla has a few
more calories, less sodium, more carbs, and more sugar.  I understand that, I mean it is only
Coke with some Vanilla flavouring in it right?  But no major nutritional difference there.  What
about the ingredients?  What is in the vanilla flavour?  That's weird the ingredient list is exactly
the same for the two products isn't it? 
For me, that again raises some red flags.  At least before I could research these new ingredients
and come to my own conclusion, now I can't.  Maybe those natural flavours aren't so natural?
Many tried to copy the drink. In 1915 Asa hired a man to make a curved glass like a bell. In
1919 Candler sold Coca-Cola to a group of investors for $25 million. They elected Robert W.
Woodruff as president of the company. In 1920 Woodruff had cola put in vending machines so
people could get one for themselves. In conclusion, soft drinks are consumed a lot during a year.
Coke is a very well-known soft drink. Phosphoric acid and citric acid are two of the acids in soda

Despite being a very well-established company that is majorly concerned with profit maximization and
expansion efforts, the company still faces some internal problems and possible wrangles. These are minor
details, but very detrimental in the overall performance of the company. For instance, there are qualms
that the company neglects its workers through a variety of opportunities. Some of them range from the
way the company accords promotions, corporate sponsorships and other internal benefits that are denied
the internal basal worker. Instead the company does a lot of outsourcing before awarding the benefits to
members. It is generally observed that one of the major areas that the company needs to improve on is the
hiring of major managerial jobs. It is observed that its sources for already reputed managers to manage
their premises. This has faced a lot of rebellion in the company with members of the company sidelining
the hiring process as taunted by repressive routines.
4.2 EXPECTATIONS AND ACHIEVEMENTS

Our responsibility does not end at the company gate. We expect our suppliers and system
partners to embrace responsible workplace practices and uphold the principles of our Human
Rights Policy. We communicate these expectations through our Supplier Guiding Principles
(SGP).

The SGP are aligned with our Human Rights Policy and are a part of all contractual agreements
between The Coca-Cola Company and our direct and authorized suppliers. We expect our
suppliers to develop and implement appropriate internal business processes in compliance with
the SGP.

Key SGP topics include:

1. Freedom of association and collective bargaining


2. Prohibit child labour
3. Prohibit forced labour and abuse of labour
4. Eliminate discrimination
5. Work hours and wages
6. Provide a safe and healthy workplace
7. Protect the environment
8. Business integrity
9. Grievance procedure and remedy
10. Management systems for ensuring lawful compliance and respect for all human rights

They closely monitor the implementation of our Supplier Guiding Principles by utilizing
independent third parties to assess supplier and bottler compliance. They partner with a select
number of accredited audit firms and conduct training on a regular basis to ensure they
understand and align to our program requirements. The Company supports the efforts of the
Association of Professional Social Compliance Auditors (APSCA) to ensure a common
accreditation for auditors and audit firms. Currently, all of our preferred audit firms are involved
in APSCA. Our goal for 2020 is 98% compliance of bottling partners and 95% compliance of
direct and authorized suppliers with the SGPs. Progress against these goals can be found in
our Sustainability Report.

Their program is always evolving as we continue to learn and address new challenges. They
regularly benchmark against industry standards and consult stakeholders to improve our
program. As such, the Supplier Guiding Principles are reviewed and updated as needed. They are
anticipating the next update to be rolled out in 2021-2022.

They are a customer-centric business aiming to provide value to our customers by growing their
business and through perfect execution in the market-place, they grow by supporting their
customers’ growth. To do this, we leverage our 24/7 portfolio and segmented sales execution to
grow the overall beverage industry, focusing on areas of high value opportunity and executing
with excellence. With over 100 brands covering eight categories – sparkling, water, juices,
ready-to-drink tea, energy, plant-based, premium spirits and coffee – we have more opportunities
to help our customers delight consumers than ever before, by providing the brands and drinks
people want, when and where they want them.
We have prioritized 5 critical capabilities for growth: Customer Centric Key Account
Management, Tech-enabled Route to Market, Value-led Revenue Growth Management,
Disciplined Innovation and Growth-focused Big Data and Advanced Analytics. Fast-forwarding
these across the organisation, evolving our strategic frameworks and enabling everyone to play
their role, is crucial to delivering growth.

Fig 1.12

Achievements

The Coca-Cola Company is the world's largest beverage company. The company’s best known
product Coca Cola was invented by John Stith Pemberton in 1886. The Coca-Cola formula and
brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892.
The Coca Cola Company Coca-Cola currently offers nearly 400 brands in over 200 countries or
territories and serves 1.5 billion servings each day. The Coca-Cola Company is headquartered in
Atlanta, Georgia. Its current president and CEO is Muhtar Kent. Coca Cola In India Coca-Cola,
the corporate nourishing global community with the worlds largest selling soft drink
concentrates since 1886, returns to India in 1993 after a gap of 16 years. With the acquisitions of
major brands in India it went on to be known as The Hindustan Coca Cola Beverages Pvt Ltd.
Coca Cola In India Hindustan Coca-Cola Beverages Private Limited is a 100% company owned
Bottler. The company has 3 business regions, and operates out of 22 locations across India.
Their business model includes manufacturing the beverage.

Achievements Coca-Cola India won the Delhi Government's Bhagidari Award for its efforts in
Water Conservation and Community Development.

The World Environment Foundation (WEF) conferred the “Golden Peacock Environment
Management Special Commendation” for the year 2006.

All 25 of the COBOs have gained the international standard ISO 14001 Environment
Management System certificate.

The ISO 14001 certificate is the internationally recognized standard of Environmental


Management.
Reduced electrical bill by over $200,000 in 2012 by installing skylights and energy efficient
lighting, and by modifying the air and ammonia compressor systems to run at top efficiency.

Identified and repaired compressed air, nitrogen, and CO2 leaks, saving energy, raw materials,
and CO2 emissions.

Implemented a recycling program that captures over 98% of all waste generated at the facility.

Reduced water consumption by over 18 million gallons annually through changes to the
conveyor system, sanitation process changes, and an inspection procedure to ensure all water
leaks are fixed, no matter how small.

Provided empty drums to various organizations for conversion to rain collection barrel.

Fig 1.13
Fig 1.14

4.3 LEARNING OUTCOMES


HINDUSTAN COCA-COLA BEVERAGE PVT. LTD.

 The Coca Cola Company is the largest beverage business in the world serving more than
200 countries and offering more than 500 brands.

 Coca cola gives employment to more than 146,200 employees as per the survey in 2012

 Revenue of coca cola in 2012 is $48.01 billion. It is a machine that newly invented by
the coca cola That to increases sale of coca cola with new style and at less price.
Basically, it is for new outlet which are not an part of coca cola company.

 On The very first day we get to know about the packages or product by the coca cola.
Total 34 products. Packages 125 ml 200 ml 300 ml 400 ml 500 ml 750 ml products Coca
cola, Thums up, Sprite Fanta, Maaza, Limca, Kinley, club soda Minute maid

 After this, we get trained by brijendr sir for the splashbar machine

 Main parts are- Weekly changing nozzle, Daily sanitation of splashbar

 Distribution channel Production factory Warehouse Distributers Outlet Final consumers

Were, every distributer has billing machine, that on every purchase order distributer have to give
that printed bill to outlet. That have several benefits: -

 Instant exact amount of bill.


 Shows the skim benefit which is given by coca cola company • Daily updating of
inventories.
 It will give accurate data.
 To deal with customers
 To give answer of different different question.
 To take start talking to an unknown person.
 To convince
 .To deal with different situation specially when you are not ready for that .
 Get motivation form negative reply.

 The most popular flavor is THUMSUP in the whole market.


 Coca cola is the market leader and Pepsi is the market challenger.
 Thums up has the highest sales from the coca cola’s side and from the Pepsi’s side
mountain Dew has the highest sales.
 Aquafina has more sales then kinley in mineral water segment.
 Pepsi provides more schemes then coca cola.
 Sprite has the fastest grownup brand in the clear lime segment in the recent years.
 In the off season when the sale is reduced retailers want more schemes.
 Minute maid has not getting good response from the market.

I did not have any idea about the great company like coca cola. What I had learnt in my entire 1 st
year course I realized this practically during my summer internship program. I got a chance to
deal with corporate citizens.
4.4 RECOMMENDATIONS

The company is thus viewed as lacking in this capacity to appreciate its own workers. It should
upgrade its workers through rank and cadre growth. This enhances optimism, positive beliefs
and the right attitude in entrusting the employees’ stake in working with the company. The
overall effect would therefore be relayed in terms of more improved output and productivity.
This would therefore put the company in a very good position in achieving its goals, objectives
and mission statement as envisioned.
The company should therefore adopt mechanisms that will oversee it improving its internal
image. This should be done with a lot of urgency since the world is under a lot of shifts
anconstant dynamism. Employees should be given equal stakes and opportunities to advance in
their work to the maximum without sidelining them in matters of management and senior
company administration.
Another possible effort that the company should make is the introduction of management trainee
programs for its internal staff. This will raise the type of leaders that it sources from the external
space. Management trainings and job analysis in an annual basis will ensure that all faculties of
the company are functioning well. This means that right from the junior members of staff, the
company is to institute proper mechanisms to oversee its efficiency. There should also be a more
spirited expansion and diverseness in brands as its mission and core values state. Other
companies such as PepsiCo have a variety of brands that span the globe (Regassa & Corradino,
2011). This will ensure that its brand names fall outside the usual ones. Diversity is the secret to
a global harness of market and competitiveness. Without this the company will be struggling to
cope with the upcoming rival companies.
A study of market demands should also be undertaken on a regular basis to determine the new
lifestyles. This will help the company to adjust its plans, budget and further advance new ways
and methods of propagating through the murk of shifts. It is pertinent that a company copes with
the current needs of the people, otherwise what it will be doing will go to a waste. There should
be a review of the whole company’s standings in terms of motivation of workers, productivity,
aspirations and focus, mission and reconstruction measures taken to seal the loopholes. Surveys
such as this one will ensure efficiency and high production levels in the company. There would
be quality, inclusiveness and realization of company objectives and values. This would be the
culmination of its investment and perhaps the optimal functionality in terms of operation levels
of the time offering new drinks that provide health benefits like hydration and nutrition
Approach to meet changing tastes and needs includes reducing sugar and calories across many
brands;; expanding the availability of smaller, more convenient packages to help people control
sugar more easily; and providing clear, easy-to-find calorie information to help people make
informed decisions without the guesswork.
Putting the consumer first, Quincey said, starts with rethinking some of the company’s beverage
recipes to reduce sugar, and investing to make the next generation of zero-calorie sweeteners.
The goal is to give people the low and no-sugar drinks they want without having to give up the
great tastes they know and love.

At the same time, The Coca-Cola Company supports the current recommendations of several


leading health authorities, including the World Health Organization (W.H.O.), that people should
limit their intake of added sugar to no more than 10 percent of their total daily calorie/energy
intake.

“We’ve begun our journey toward that goal,” citing efforts to make low- and no-sugar drinks
more visible and easier to find, and bringing more offerings like organic tea, coconut water,
dairy, grab-and-go coffee, juices and purified waters to more people in more places.
4.5 FINDINGS AND CONCLUSIONS

 According to the demand of outlet owners, deliveries of products are not made available
in the outlets

 Efficient brands of coca cola are not available in outlets

 Sales people and delivery persons do not visit the outlets on regular basis

 Advertisement material is not available in the right time at the right place i.e. Different
channels like Grocery, convenience, E&D

 Many outlet owners have complains on improperly working visicooler i.e. its cooling
capacity is low or its lights are not working

 Improper management is seen as no machines visit the outlet despite of complaints


issued by outlet owners

 Visicoolers are not placed at their prime locations in many outlets

 Many outlets owners express deep in satisfaction towards coca cola as they do not get
any prize or cash discount as they receive from other companies

 Outlets who are interested to sell coca cola products they generally demand for free
company fridge, which is not possible to give to all. The availability of rice box and
fridge is limited
Conclusion

The Coca Cola Company is currently one of the biggest and most recognized soft beverage
brands in the world. With over 3000 products in more than 200 countries, the Coca-Cola
Company has surely become part of people’s lives. The Coca-Cola Company owes its success to
the people who do their best to achieve the task at hand. Thus, the Cola-Cola Company takes
cares of its employees in return by creating a good working environment and working along with
unions and government agencies to make sure its employees are safe. The Coca-Cola Company
understands that in today’s business world technology is very essential to run such a big
company like Coca-Cola. Therefore, the Coca-Cola Company uses different types of technology
such as creating databases and data warehouse about their customers and suppliers, doing
business with consumers and other businesses through the internet. The Coca-Cola Company
even offers merchandise over the internet through its very own shopping website
www.cocacolastore.com.The Coca-Cola Company also uses search engines such as Google and
yahoo to advertise its products and make sure its brand reaches more people every day. Coca-
Cola has spent over $2 million just on advertising and marketing. This makes Coca-Cola well
known in many countries In addition, keeping up with today's new trends, the Coca-Cola
Company also advertise its products on myspace, facebook and twitter. The Coca-Cola Company
knows that no business can run without a plan. Because the Coca-Cola Company has been able
to the set the entry barrier in the beverage business very high, new companies are discourage to
compete with Coca-Cola. In addition, the Coca-Cola Company has agreements with many of its
supplier (mostly bottling company) to exclusively provide by their services to Coca-Cola. Thus,
it is almost impossible for new comers to keep up with Coca-Cola and similar competitors with
recognized names in the business such as Pepsi. The Coca-Cola success isn't something that has
been achieved over night. Many years has passed since John Pemberton created the secret
formula for Coca-Cola in 1886. Who would have thought that after over a hundred years, his
creation would have this much impact in the world and turn Coca-Cola into a worldwide
company
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Fig 1.15

THANK YOU

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