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A Study of the Role of Collaboration between Logistic Partners for Business Success: The case of bottling operations at Hindustan Coca cola Beverages - Essay Example

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Coca Cola international had its presence in India till the late 1970’s when it was shut down due to the socialist policies of the then government. The company re-entered…
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A Study of the Role of Collaboration between Logistic Partners for Business Success: The case of bottling operations at Hindustan Coca cola Beverages
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Download file to see previous pages Coca Cola international has 24 company bottling plants and 26 franchisee bottling plants in India. These form the logistical base upon which the company operates in India. Coca Cola international supplies the closely guarded formula for making the bottled drinks and the bottling plants and the suppliers make the final product based on the concentrate that has been given to them.
Over the course of several years, the bottling plants operated by HCCBPL as well as the franchisees have had to deal with several challenges. These primarily relate to the way in which the pricing of the bottled product, Coke has been done and the numerous protests that have accompanied the bottling operations in several states in India. Further there have been allegations of the pesticide content in the Coke brand of drinks that is beyond the permissible level. These allegations were made by a non-profit watchdog, the Centre for Science and Environment (CSE).
If we take the first challenge listed above that is to do with the pricing strategy followed by Coke in India. As the prominent Business Daily, Business Line put it, “Coke has been facing difficulties on several fronts. The company unveiled its low-price, affordability strategy in 2003, which hinged on raising the overall consumer base by offering carbonated soft drinks in smaller pack sizes of 200 ml at Rs. 5. Initially, this strategy appeared to work wonders for Coke in India, with trials on the rise. It also forced arch rival PepsiCo to follow suit. However, before the peak summer season was out, Cokes bottlers, retailers and other stakeholders began to complain. They were up in arms against the low-price strategy because the trade margins were being severely squeezed, denting their bottom-line” (Business Line, 2005). This was the first of the challenges that the company faced as a result of its pricing strategy.
Next, the company and the bottlers have been fighting protracted ...Download file to see next pagesRead More
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