A REPORT ON INTERNSHIP AT HINDUSTAN COCA-COLA BEVERAGES PVT. LTD Submitting in partial fulfillment of the requirements for the Award of the Degree of BACHELOR OF BUSINESS MANAGEMENT By MANISH S 13MG1209 Under the Guidance of Prof. C.Surendranath Reddy KRISTU JAYANTI COLLEGE (AUTONOMOUS) K.NARAYANPURA, KOTHANUR POST BANGALORE-560077 2014-2015 CERTIFICATE FROM THE GUIDE This is to certify that this internship work at Hindustan Coca-Cola Beverages Pvt. Ltd, Bangalore is based on an original study conducted by Manish S with register number 13MG1209 of 4th semester BBM under my guidance. This internship has not formed the basis for the award of any degree/ diploma by any university. Place: Date: Name of the Guide CERTIFICATE FROM THE COLLEGE This is to certify that this internship work at Hindustan Coca-Cola Beverages Pvt. Ltd, Bangalore is based on an original study conducted by Manish S with register number 13MG1209 of 4th semester BBM under the guidance of Prof. C.Surendranath Reddy This internship has not formed the basis for the award of any degree/ diploma any university. Head of the Department Principal Place: place: Date: Date: DECLARATION I Manish S hereby declare that this internship work at Hindustan Coca-Cola Beverages Pvt. Ltd, Bangalore is based on the original study conducted by me under the guidance of Prof. C.Surendranath Reddy This has not been submitted earlier for the award of any other degree/diploma from any University. Place: Date: Reg. no: Student Name ACKNOWLEDGEMENT You should acknowledge the help and assistance of your principal, teachers and external people. TABLE OF CONTENTS S.No Content 01 Introduction 02 Company Profile 03 Organisation Structure 04 Functional departments 05 Best Practices 06 Learning Outcome 07 Conclusion INTRODUCTION Page No I have selected Coca Cola as the organisation for my internship during this summer. I have approached the plant manager to request for the permission to do internship. The plant manager was convinced with my explanation and gave permission to do internship. Hindustan Coca-Cola Beverages Pvt. Ltd., Zonal Office of Coca Cola Pvt. Ltd. Located in Bidadi Industrial Area, Bangalore. It was a two weeks internship starting from 4th May, 2015 to 18th May, 2015. Working Days: Monday to Saturday and timings from 9 am to 5 pm. But I stayed back in office along with my mentor till 7pm on certain occasions. During the period of my internship, I have visited all the departments in processing unit of Coca Cola. I have interacted with people working in different departments like purchase, cleaning, filling, warehouse, transportation, human resource, finance and legal cell for the purpose of study and understanding the practices. Mr.Murugesh, the plant manager took me to Mr. Ranjan, my mentor on the first day for the induction program. The supervisor explained me about the activities of the plant, rules and regulations, policies and major departments. The second day onwards my internship started with observing the facilities and practices of the plant. My internship started with understanding the basic production function and it went on with observing and learning the functions of departments like purchase, cleaning, safety, filling, warehouse, human resources, finance and transportation. 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. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. COMPANY PROFILE About Coca Cola: 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 CocaCola soon appeared in The Atlanta Journal, inviting thirsty citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink” added to inform passersby that the new beverage was for soda fountain refreshment. By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton’s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,” used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893. The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual report to share owners that “Coca-Cola is now drunk in every state and territory in the United States.” As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world. About Hindustan Coca-Cola Beverages Pvt. Ltd Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola re-entered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent base for rapid introduction of the Company’s International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company. In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the CocaCola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002. Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. “Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like “Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. ORGANISATION STRUCTURE Organisation structure of Coca Cola in India: Chief Executive Officer Vice President Supply Chain Chief Finance Officer Human R esource Director Vice President BSG Regional Vice President (North) Regional Vice President (Central) Organization Structure of the Sales Department in HCCBPL: AGM/AO D Plant Manager Route to Market Human Resourc e Manager General Sales Manager Finance Manager Area Sales Manager Channel Manager Sales Executiv e Market Develop er Distribut ors And Salesmen Area Capabilit y Manager Marketin g Key Accounts Sales Trainers FUNCTIONAL DEPARTMENTS Production Department: 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. M an uf a c t u r i ng P l a nt , B i d a di S al e s a n d D i s t r i b ut i o n O p e r at i o n s D i s t r i b u t or s O ut l e t s Manufacturing process at HCCBPL O ut l e t s 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 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. 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. 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 non-availability of the product. Examples: Departmental stores, Super markets etc. Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc. General: Under this route, all the outlets that come in a particular area or an area along with its neighbouring areas are catered to. The consumption period is not taken into consideration in this particular route. 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. TYPES OF PRODUCTS 1. Coca Cola The world’s favorite drink.The world’s most valuable brand.The most recognizable word across the world after OK. Coca –Cola has a truly remarkable heritage from a humble beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and distributor of non- alcoholic beverages in the world. 2. Thums up It is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquired by the Coca Cola Company in 1993.This brand known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. 3. Sprite Sprite is global leader in the lemon line category, is the largest sparkling beverage brand in India. Launched in 1999, Sprite with its cut thru perspective has managed to be a true teen 4. Fanta Fanta has entered in Indian market in the year 1993.Fanta stands for its vibrant color, tempting taste and tingling bubbles 5. Limca Born in 1971,Limca has remained unchallenged as the No. 1 sparkling Drink in the cloudy lemon segment. The main point in the brand is the “Freshness”. 6. Pulpy Orange The company developed a process that eliminated 80 % of the water in orange juice forming a frozen concentrate that when reconstituted created orange juice. Available in 400 ml,1 L and 1.25 L and also in PET pack size. 7. Maaza Mango. It is a fruit associated with good times like no other. It’s called the king o fruits. 8. Kinley Kinley water understands the importance and value of the life giving fore. Kinley water comes with the assurance of safety from the Coca-Cola Company. Coca-Cola introduced Kinley with reverse osmosis along with latest technology.Available in 500ml,100ml in PET. 9. Georgia Gold Introduced in 2004,the Georgia gold of tea and coffee beverage is perfect solution for the office and restaurant needs!It is available at quick service restaurant, Cinemas, Airports and in Coporates across all major matros in India. Hot Bevarges : Espresso, Americano, Cappucino, Caffe Latte, Machaccino , Hot chocolate, Cardamom Tea Cold Bevarages: Iced Teas,Cold Coffee BEST PRACTICES DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts. STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white CocaCola is one of the very few things that are recognized by people all over the world. Coca-Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45billion. 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. LEARNING OUTCOME As I expected a serious environment was prevailed most of the times. Everyone with whom I came across in the Office and the ones I interacted with were very friendly including the security personnel and the pantry person. I have learned about the manufacturing process of Coca Cola, the quality standards, methods followed to maintain the premises, labour practices, packing procedures, distribution system and safety measures taken by the company. My mentor Mr. Ranjan is a really jovial and helpful person. I was never turned back whenever I failed to understand anything or needed any help. He used to pause his work and help me out before resuming back to his work again. It is worth mentioning in this context that I had nice experience as an intern at this Zonal Office and my mentor made sure that I had no problems and that I was able to do my work diligently and perfectly. There have been instances when my mentor has asked me to change a major chunk of the work done by me but he never failed to appreciate the good stuffs in it. I have also often engaged in discussions about my career with him CONCLUSION COKE is most popular amongst its users mainly because of its TASTE, BRAND NAME, INNOVATIVENESS Thus it should focus on good taste so that it can capture the major part of the market. In today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need to be always on your toes. We feel that there is cutthroat competition between COKE & PEPSI so to be on top of mind of the customers they need to do something outstanding every time. The best thing that consumers like about the Coca cola brand is their promotions and availability. Suggestions are given by the consumers to improve the quality of the product and to reduce price of its different packaging. Because of increasing health awareness, some consumers do not like drinking sparkling drinks and prefer juice drinks. Coca Cola is more famous for its sparkling drinks. In the previous few years it has come up with juice drinks, energy drinks, tea and coffee. Some of these products are popular among consumers whereas the rest still have to be accepted by the consumers.