CIA-III

SUBJECT: SALES MANAGEMENT AND NEGOTIATION SKILLS

TITLE: A MARKETING OPERATIONAL REPORT ON HINDUSTAN COCA-COLA

BEVERAGES LTD.

SUBMITTED BY SUBMITTED TO

SANDEEP KUMAR GUPTA 1827527 Prof. A. SURESH

SHAUNAK KUNDU 1827528

SOURAV RAKSHIT 1827530

YASH JHA 1827534

RIZVAL 1827553

GAURAV SHARMA 1827561

 TABLE OF CONTENTS

SL NO TOPIC PAGE NO

1 INDUSTRY ANALYSIS

2 PERMANENT JOURNEY PLAN

3 BASIC REPORTING BY SALES FORCE

4 ORGANIZATION STRUCTURE

5 SALES ORGANIZATION STRUCTURE

6 JOB ROLES AND RESPONSIBILITIES

7 DISTRIBUTION CHANNELS

8 SALES FORCE MOTIVATION

9 ANNUAL FORECASTING OF TARGET

10 SALES FUNNELING CONCEPTS

11 ANNUAL SALES PLAN DERIVING METHODS

 INDUSTRY ANALYSIS

Many brand names exist under Coca-Cola Enterprise. The products are all beverage refreshments
yet they differ in the category of refreshments. Three noteworthy businesses that Coca-Cola
Enterprises are engaged with are the soda business, the filtered water industry, and the
tea/espresso industry.

As of 2018, Coca-Cola Enterprise possesses a market share of 48.6% of the beverage industry.
Products of The Coca-Cola Company are consumed at the rate of more than 1.9 billion drinks
per day.

The Coca-Cola Company is the world's largest beverage company. Our operational reach
encompasses + 200 countries worldwide across 5 operating regions: Asia Pacific; Europe,
Middle East & Africa; Latin America; North America; and Bottling Investments – in addition to
Corporate.

Hindustan Coca- Cola Beverages Pvt Ltd. a subsidiary of Coca-Cola as a parent organization is
currently performing its business in the Indian Market and currently posses a market share of 48
% approximately. In some of the regions of the domestic market Coca-Cola is having its
monopoly. However due to growing competition in the market the several local players has
emerged and trying to gain back the market share from Coke thus providing the formation of an
oligopoly market structure. The Coca-Cola Company reemerged India through its entirely
possessed backup, Coca-Cola India Private Limited and re-propelled Coca-Cola in 1993 after the
opening up of the Indian economy in 1991. From that point forward its activities have become
quickly through a model that underpins packaging tasks and the organization currently
incorporates more than 7,000 Indian wholesalers and more than 2.2 million retailers. Today, their
brands are the main brands in most drink sections. The Coca Cola Company's brands in India
incorporate Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Minute
Maid Pulpy Orange, Minute Maid Nimbu Fresh and the Georgia Gold scope of teas and
espressos Vitingo (a drink braced with smaller scale supplements).

In India, the Coca-Cola framework includes a completely possessed auxiliary of The Coca Cola
Company to be specific Coca-Cola India Pvt Ltd which fabricates and sells concentrate and
refreshment bases and powdered drink blends, a Company-claimed packaging substance, to be
specific, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized packaging accomplices of
The Coca-Cola Company, who are approved to plan, bundle, sell and convey drinks under
certain predetermined trademarks of The Coca-Cola Company; and a broad appropriation
framework containing our clients, wholesalers and retailers. Coca-Cola India Private Limited
offers concentrate and refreshment bases to approved bottlers who are approved to utilize these
to create our arrangement of drinks. These approved bottlers freely create nearby markets and
appropriate drinks to food merchants, little retailers, grocery stores, eateries and various different
organizations. Thusly, these clients make our drinks accessible to buyers crosswise over India.

A National Council of Applied Economic Research (NCAER) contemplates on the carbonated

soda pop industry shows that this industry has a yield multiplier impact of 2.1. This implies on
the off chance that one unit of yield of refreshment is expanded; the immediate and circuitous
impact on the economy will be twice of that. Regarding business, the NCAER think about notes
that "an additional creation of 1000 cases produces an additional work of 410 man days."

As a Company, our items are a vital piece of the smaller scale economy especially in
communities and towns, adding to production of occupations and development in GDP. Coca
Cola in India is among the biggest residential purchasers of certain rural items. As an industry
which has solid in reverse and forward linkages, our activities catalysis development popular for
items like glass, plastic, refrigeration, transportation, and Industrial and horticultural items.
 PERMANENT JOURNEY PLAN

Apermanent journey planning plays a crucial role for any organization to achieve its objective in
order to keep a track of its mission and vision policies. Without an effective PJP it is very hard
for any organization to keep a track of its daily activities and controlling of work force. Thus
Coca-Cola beverages as one of the leading global MNC has its own framework of PJP which is
followed meticulously at each and every step of their operation to keep a synergy with the sales,
marketing and channel distribution aspect as discussed in detail in the following concepts:

 The day wise schedule is the first step towards the permanent journey plan wherein the
names of retail stores or outlets are listed.
 These outlets or retail stores are the target places where the company is ought to make or
implement the project or business.
 Once the permanent journey plan is gone through, after this the visits to outlets has to be
done. This is done in order to gain the information from these outlets which are listed in
the list to be covered.
 The first and foremost task is to gain the initial information from every outlet or retail
store. In this process, not just the information from outlets is to gathered but also the
market. And the visits to these outlets or retail stores of a given particular area helps in
revealing the market condition which further helps in making additional plans in regard
to the sales for the organization.
 Visiting the outlets or retail stores clearly gives the picture of the market situation
prevailing.
 The permanent journey plan includes various tasks of which some are: sampling
distribution, meeting the target set, mailing to different departments, daily attendance,
etc.
 BASIC REPORTS/REPORTING REQUIRED TO BE DONE BY SALES FORCE

The basic protocols of functional and operational reporting is done in a daily basis at each and
everyhierarchical level of the organization starting from the very lower end of the organization
structure as it is discussed in the later part of the report.

The various agendas which are required to understand the market dynamics and the current
product demand in the market are estimated through the daily reports generated. Some of the
important attributes which are looked into the report are as follows:

 Salesforce provides powerful reporting from which the future plans are made.
 When business has questions, it is the salesforce having the answers to those.
 The basic reporting to be done by salesforce includes questions like:
1. What is making a product a top-seller, quantity or the revenue?
2. Which is the product preferred most in a particular region?
3. What is the reason behind some products being preferred the most?
4. Which area is accumulating profits the most?
 The main purpose of the company to maintain a report is to maintain the list of records
that meet the criteria the company defines.
 The report is prepared in rows and columns which is later on filtered, grouped and then
displayed in the form of graphical charts which makes it easy to go through the reports.
 With the help of reports, the salesforce provides a set of defined goals to be met.

The daily reports are majorly complied by the area sales managers and the regional managers of
respective product division and they are then sent on a weekly basis to the upper management
namely to the Zonal Managers and the final monthly report is ultimately sent to the AGM’s and
Gm’s from which the top level management gets a clear cut idea about the sales vs forecast
model on a quarterly basis. Thus a well-knitted coordination is expected at each and every level
of the employees and the ground sales force is the source of all relevant market information for
an organization like Coca-Cola.
ORGANIZATION STRUCTURE
 SALES ORGANIZATION STRUCTURE

AGM
Sales
Manager
Area Sales
Manager
Sales Executives
Market Development Executive
/ Pre-Seller

Thesales force organization structure is well described in the above pictorial representations and
it always follows a top-down approach for the implementation of any new sales and marketing
strategy which the organization understands to play a critical role for the growth and expansion
of market share.

Similarly, in case of reporting the actual market scenario the ground level sales force consisting
of the Market development executives and Pre-sellers plays the major role in collection,
assimilation and compilation of all the relevant data fields required to obtain the product
position, acceptance of the product as well as it gives a clear perception of the brand recognition
in the market especially in country like India where there is a presence of multiple local and
regional players.
 JOB ROLE AND RESPONSIBILITIES OF INDIVIDUAL MANAGERS

Assistant General Manager

• Responsible for the daily company operations to ensure positive, safe and profitable
working environment.
• Looks after the order, purchase and stock the merchandises in a timely manner.
• Implement quality and productivity objectives to achieve company goals.
• Ensure that employees follow the company standards, policies and strategies.
• Responsible for planning short and long term projects, budgets, expense controls,
schedules, and manpower.
• Develop and implement staffing and business plans to achieve business target.

Regional Sales Manager

• Looks after the profit and loss .account of the assigned territory and the various. analysis
that needs to be done
• Responsible for looking after the issues .of whether or .not the sales team is
abiding by the .policies that has. been laid by the company
• Responsible for maintaining the cohesiveness of the entire sales. force under him
• Involved in the training and development programs that are there for the Area Sales
Manager
• Ensures outlet. Merchandising standards through trade visit.
Area Sales Manager

• Responsible for all the primary targets that have been assigned to him and
his team of sales executives
• Accompanies various executives on sales calls when the account is crucial .and when some
assistance is required and also participates in the training program of them
• Communicates all the company policies and philosophy to his team and is required to
maintain good relations .with the clients, major account, legal accounts and other
influential. sources in his designated area
• Works with the Distribution team to draw up the route plan of the Route Salesmen.
Sales Executives

• Responsible for secondary target achievements and is required to maintain good relations
with the retailers, distributors and dealers.
• Ensure the smooth execution of the various strategies like selling, promotion etc. and
takes care of the training program of the distributor salesperson.
• Travelling to different markets and distributor points providing them a fair
idea as to what is required at the ground level.

Pre-sellers

• Take orders from retailers and dealers in the market execute various
promotional activities.
• Stay in touch with .them round the year for any operations related to their day to day
job.
• Every distributor has 3-4 Salesperson of their own who are on third party payrolls and
eventually become Pre-sellers depending on their productivity.
 DISTRIBUTION CHANNEL AND SALES NETWORK

For a consumer product like beverage distribution channel plays a major role in making its
predominant presence in the market and Coca-Cola being a leading MNC in this sector is no
exception to it. The manufacturer produces the finished goods which are stored in the warehouse
located at the respective manufacturing unit from there it is being transported to the distributors
followed by the whole sellers and the retailers. An in house Supply Chain Management is thus
performed to keep a track on the total units of beverages that are consumed in the market on a
daily basis which are updated and the data is thus transferred to the upper channels in the supply
chain. The field sales representatives are assigned with the task of meeting the channel partners
and the retailers on a periodic basis which can either be weekly or bi-weekly based on the
volume of sales that are meant to be generated.

A common distribution channel which is followed by Hindustan Coca-Cola Beverages Ltd. for
their southern bottling unit located in the state of Karnataka is shown as below:
 SALES FORCE MOTIVATION

Motivation is an essential factor for the employees which have to be provided by the
organization in order to bring out the best for the dedicated employees so that they can excel
their performance at each and every level. A world class MNC like Coca-Cola always follows
the concept of both intrinsic and extrinsic motivation.

Intrinsic motivation includes the common culture of provision of Well-Done Award along with a
performance certificates and also a steady growth within the organization with added roles and
responsibilities. The extrinsic motivations mainly include the various types of incentive policies
undertaken by the organization as follows:

 Incentives based on quarterly performance

 No. of units and/or total revenue, work as a base for incentives
 Every executive needs to add new outlets every year to get UNIT
incentives
 Target achievers are recognized by giving:
o TV, Fridge, etc.
o Certificates / trophies
o Lunch / outing with senior management, etc.
 Foreign trips for managerial level & above
 ANNUAL FORECASTING OF SALES TARGET

Coca-Cola at present has 28 manufacturing units in India under the name of Hindustan Coca-
Cola Beverages Ltd. across the country located at all the major zones namely North, East, West,
South and Central.

According to our visit information it was noted that each plant is equipped with a daily capacity
of a production of 2000 bottles on an average and the manufacturers selling price is kept at
Rs.8.00 per bottle which generally includes all the direct and indirect expenses as incurred during
the production, product branding as well as the promotional events like advertisement and
celebrity endorsement.

On the basis of this data a preliminary calculation is made to estimate the annual target to be kept
for the Indian Market by segregating it to the respective zones and the inter zonal target on the
basis of demography and location.

It is thus assumed the monthly sales figure for each region on 2nd and 3rd quarter to be as Rs.0.4
Million whereas the monthly sales target for the 1st quarter is increased by 50 % and hence it
turns out to be Rs.0.6 Mn for the stated period. On the contrary in the final quarter of the FY it is
assumed that the sales to reduce by 50 % especially in the Northern and Western territories of the
country due to extreme cold weather during which the average consumption of soft drinks and
cold beverages drops down.
A detailed monthly forecasted model is shown in the following excel data sheet format.

*All units in MN
SALES FUNNELING CONCEPT
B2C Sales Flowchart

Coca Cola Manufacturing Plant

Coca Cola Warehouse

Wholesaler or Distributer

Retailer

Consumer
The 6 major steps of Sales Funneling followed in Coca-Cola India Ltd (B2C SALES)

 SUSPECT: To initiate the business in an untapped region the suspect of potential market
force is very important. Hence Coke follows a pan-market demographic strategy to
understand and develop the actual market potential based upon which they proceed for
the concurrent steps of sales funneling.

 PROSPECT: Based upon the identified market potential the organization follows the
prospect model by cold calling to various local distributors and the whole sellers of every
corner of the potential region in which they want to expand and grow their market. The
field sales representatives are assigned to visit the channel sales members namely the
dealers and the whole sellers based on bits or the frequency interval based on the volume
of sales that is required to be generated for that particular region. The major prospects of
this specific type of business models includes a wide range of sales platform starting with
all major retail stores across the country, followed by local shops, shopping malls, offices
and tech parks and lastly various educational institutions like schools and colleges.

 ASPECT: Based upon the responses of cold calling as obtained by the sales force it leads
to the identification of potential and valued customers. Thus the aspect of the business
volume that can be generated is thus identified. This leads to the formation of the yearly
sales forecast and target of each and every respective region as stated in our earlier report.

 NEGOTIATE: The most important part of any sales funnel is the negotiation and the
terms and conditions associated with it. Mostly for FMCG product like Coca-Cola it is
always indented to go for market dominance and generation of high volume sales at each
and every platform as mentioned earlier. Hence the basic terms of negotiation always
includes advance payment for the new sellers in the market whereas for major and
existing dealers and retailers a credit payment period of 30 days is maintained in general.
The cost of transportation and delivery at the channel sales partner location is under the
scope of the channel sales members themselves as per the terms and conditions of the
purchase order.
  CONFIRM: The process of sales funneling turns out to be prospective as on when the
confirmation of the order is obtained by the organization. This involves lot of sales back
end functions like follow ups, competitor whereabouts. Price of quotations and delivery
schedule. Upon several repeated cold calling and by establishing the brand value as a
whole the order is finalized in most of the cases for a product like refreshment beverage.

 ORDER: Finally the process ends with the placement of order in alliance with the pre set
terms and conditions as negotiated during the confirmation of order and the same has to
be mentioned in the purchase order.

B2B Sales Flow Chart

Coca Cola Manufacturing Plant

Coca Cola Warehouse

Sales Representative of the

company

Restaurant Hotels Modern Trade (Big Others

IT Company
bazar, More, etc.)
 SALES FUNNELING METHODOLOGY FOR B2B SALES

Coca-Cola being a dominant market leader in beverage industry has its similar stronghold in
B2B sales along with B2C. The similar model of sales funneling is thus followed over here
described as below:

 SUSPECT: The stepping stone for B2B sales is the identification of the potential
platform through which volume sales can be generated and hence Coke has its expert
market analyst teams to figure out the most suitable platform for B2B sales to be
effective and efficient. A dedicated sales team of 40 members is developed for each sales
zone that is highly effective and has the ability to establish the brand value of the product
when it comes for the institutional sales.
 PROSPECT: Initially Coke identifies the potential target market to expedite its B2B
sales mainly through educational institutions, tech parks, hospitals, hotels and restaurant
chains where the average footfall for a day ranges in between 700-1500. Thus currently
all the major IT hubs located in the tier 1 cities like Bangalore, Hyderabad, Pune are
some of the major landmarks for this kind of volume business model for Coca-Cola.
 ASPECT: In context of institutional sales Coke also looks beyond the method of
conventional selling that is by setting up of Exclusive Brand Outlets in the specified areas
for carrying out B2B sales. Recently the company has come up with various innovative
promotional ideas of automated vending machines installed at various entry and exit
points of major IT parks of the country. In addition to it they are also setting up fountain
dispensing machines at major restaurants, cafeterias, Movie theaters and amusement
parks. These selling hubs not only acts as a major inducers for creating strong awareness
and recollection of the brand in the minds of the consumer but also at the same time it is
used as a key platform to bring up any kind of promotional event which the company
decides to execute with high cost effectiveness. In a recent scenario all the automated
vending machines of Coke were turned into black instead of the very familiar red color
on the eve of launching “DIET COKE”.
 NEGOTIATE: The negotiation part plays a crucial role for the setting up of kiosks in the
above mentioned hubs in and around the city across the country. The negotiation is
mainly done between the respective area authorities on the basis of average sales that can
 be generated if the company sets up a vending machine or a mobile store in their
premises. The terms of negotiation also includes the daily rental rate and the power
consumption charges that are required to keep the merchandize in its ideal condition
ready for consumption.
 CONFIRM: The final step before the publish of firm sales order, confirmation of the
purchase order takes place between the sales representatives of the organization and the
institutional authorities respectively. This step also includes the process of repeated
follow ups and adherence to the payment terms and conditions as agreed upon the time of
negotiation. The payment terms generally followed in B2B is mostly credit sales since the
organization wants to set its foot and carry out a long term relationship business model
with all the premium institutes which they have targeted for this specific business model.
 ORDER: The final leg for the development of the market and establishment of the brand
in the designated locations comes up with the release of firm purchase order and the other
terms and conditions like the frequency of delivery, scope of delivery or fright charges
are also duly mentioned in the same. The final statistical count of market share and the
annual revenue generation data is thus obtained from it.
ANNUAL SALES PLAN DERIVING METHODOLOGY