You are on page 1of 88

PREFACE

An attempt to get an insight into the soft drink market growing has been made, by way of market research in various areas of the capital. The campaign encapsulates the new-found confidence of the Indian youth and using wit and humor speaks the language of an empowered generation. Using wit and humor the new campaign speaks the language of an empowered generation. The following report throws to generate mass awareness in Indian market about Coca cola and was basically done for brand recall and deliver the message to the target audience that food tastes best when had with Coca cola.

TABLE OF CONTENTS

CHAPTER-1 INTRODUCTION
1.1 OVERVIEW OF INDUSTRY AS A WHOLE 1.2 PROFILE OF THE COMPANY 1.3 PROBLEMS OF THE COMPANY 1.4 COMPETITION INFORMATION 1.5 SWOT ANALYSIS

1-35
2 13 32 32 35

CHAPTER-2 OBJECTIVE AND METHODOLOGY


2.1 SIGNIFICANCE 2.2 MANAGERIAL USEFULLNESS OF THE STUDY 2.3 OBJECTIVE OF THE STUDY 2.4 SCOPE OF THE STUDY 2.5 RESEARCH METHODOLOGY 2.6 LIMITATIONS OF THE STUDY

36-44
37 37 42 43 43 44

CHAPTER-3 CONCEPTUAL DISCUSSION CHAPTER-4 DATA ANALYSIS CHAPTER-5 FINDINGS AND RECOMMENDATIONS Annexures
Questionnaire

45-58 59-75 76-78

Bibliography

CHAPTER-1 INTRODUCTION

1.1 OVERVIEW OF THE SOFT DRINK INDUSTRY


BACKGROUND Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under noncarbonated category. The soft drinks market till early 1990s was in hands of domestic players like Campa, Thumps Up, Limca, etc. but with opening up of economy and coming of MNC Players: Pepsi and Coke, the market has come totally under their control. While world wide Coke is the leader in carbonated drinks market in India it is Pepsi which scores over Coke but this difference is fast decreasing (courtesy huge adspending by both the players). Pepsi entered Indian market in 1991 coke re-entered (After they were thrown out in 1977, by the then central government) in 1993. Pepsi has been targeting its products towards youth and it has struck right chord with the market and the sales have been doing well by sticking to this youth bandwagon. Coke on the other hand struggled initially in establishing it self in the market. In a span of 7 years of its operations in the county it changed its CEO four times but finally they seem to have started understanding the pulse of Indian consumers. Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers.

Segmentation The soft drink market can be segmented on the basis of place of consumption or on the basis of type of products. The segmentation on the basis of place of consumption divides the market into two parts:

On-premise-80% of the consumption of soft drinks is on premise i.e. restaurants, railways stations, cinema etc.

At-home- the rest 20% of the market compromises of the soft drink purchased for consumption at home.

The market can also be segmented on the basis of types of products into cola products and non-cola products.

Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, Diet Coke, and Diet Pepsi etc.

Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely:

Orange

Cloudy Lime

Clear Lime

Mango

i. Orange flavor based soft drinks constitute around 17% of the market. The segment is largely dominated by national brands like Fanta of Coca Cola and Mirinda Orange of PepsiCo, which collectively form15% of the market rest of the market is in hands of smaller brands like Crush (earlier of Cadbury Schweppes and now of coca Cola), Gold Spot etc.

ii. Cloudy Lime flavor constitutes 14% of the market and is largely dominated by Limca of coca cola and Mirinda Lemon of PepsiCo. iii. Limca is the market leader with around 70-75% of the market followed by Mirinda Lemon. iv. Clear Lime: this segment of the market witnessed good growth initially with all the players launching their brands in the segment. But now the growth in the segment has slowed down. The brands available in this segment are 7 Up of Pepsi, Sprite of Coca Cola and Canada Dry (earlier of Cadbury Schweppes and now of Coca cola). The segment constitutes 3% of the total soft drinks market. v. Mango: this flavor segment constitutes 2% of the total soft drinks market and it directly competes with mango based fruit drinks like Frooti. The leading brands in this segment are: Maaza of Coca Cola, Mangola (Earlier of Dukes now of PepsiCo) and Slice of PepsiCo There is very thin line of difference between the clear and cloudy lime. The most obvious feature is that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the taste. There are some small local brands at city or regional levels. Most of these are either merging with the two big players (Coca-Cola and Pepsi) or they command a very small less than 3%, of the total market in their respective areas.

Consumer Habits and Practices Soft drinks come under the category of products purchased in impulse. Though the market is marred by brand loyalty the purchase decision itself is a low involvement decision. This attitude of impulse buying is slowly changing

to occasion-led buying and also to some extent to consumption through home refrigeration particularly in urban areas. The market is slowly moving from non alcoholic carbonated drinks to fruit based drinks and also to plain bottled water due to lower price and ready availability. Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales. Brand awareness plays a crucial role in purchase decisions. Consumers prefer convenient and economy products. Availability in the chilled form affects the purchase decision. This has made both the companies to push its sales and to increase its retail distribution by offering Coolers to retailers. While there is no aversion to consumption of soft drinks by any age group, the main consumers of this market are people in the age group of 30 and below. Product differentiation is very low, as all the products taste the same. But brand loyalty is high in the case of kids and people in the age group of 20-30 yrs. Consumers are sensitive to the outlay where the purchase of beverages is concerned. Hence the market is price sensitive. Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea, coffee or other drinks like sherbet and squashes.

Per capita consumption in India is among lowest in the world at 5 bottles per annum compared to 80 bottles in Thailand and 800 bottles in USA. Delhi market has highest per capita consumption in the country with 50 bottles per annum compared to 5 bottles for the country While 75% of the PET bottle consumption is in urban areas the 200ml bottles sales are higher in rural areas According to NCAER lower, lower middle and upper middle class people do survey 91% of the total consumption of soft drinks in the country.

Market Size And Growth Soft drink market size for FY00 was around 270mn cases (6480mn bottles). The market, which was witnessing 5-6% growth in the early 90s and even slower growth at around 23% in late 80s. Presently the market growth has slowed down with growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 million bottles.

Year 88-89 89-90 90-91 91-92 92-93 93-94

Production (Mn bottles) 1968 2070 2195 2490 2800 3000

94-95 95-96 96-97 97-98 98-99 99-00 2003-04(E)

3240 4000 4450 4920 5670 6480 7000

The market growth of 22% till last year has got stifled due to high excise duty of 40% leading to higher price of the end product.

Market Characteristics: The soft drink market is highly skewed in terms of place of consumption, in terms of regional distribution & soft drink flavors as well as in terms of SKUs While 80% of the consumption is impulse based outside home 20% comes from consumption at home. This trend is slowly changing with increase in occasion led sales. Changing life style, increasing urbanization and impact of liberalization has slowly and gradually started moving the market from impulse led to occasion led and home refrigeration led consumption. The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango-flavored drinks. Diet Coke presently constitutes just 0.7% of the total carbonated beverage market.

Major Players And Market Shares The two global majors Pepsi and Coca-Cola dominate the soft drink market in India. Coca-Cola, which had winded up its India operations during the introduction of the FERA regime, reentered India 16 years later in 1993. Coca-Cola acquired a major chunk of the soft drink market by buying out local brands Thumps Up, Limca and Gold Spot from Parle Beverages. Coca Cola has also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired distribution rights of these brands from IFB Agro Limited. Pepsi although started a couple of years before Coca Cola in 1991, has a lower market share today. It has bought over Mumbai based Dukes range of soft drink brands. Both the cola manufacturers come up with their own market share figures and claim to have increased their share. Recently in August '00 Pepsi claimed to have increased its market share for first five months of calendar year 2000, to 49% from earlier levels of 47.3%, while Coke claims to have increased its share in the market to 57% in the same period from 55% in the corresponding period last year. Coke figures are based on ORG's data while that of Pepsi are based on IMRB data.

Market Share (in %)

Brand Name

Market Share (in %) ( ORG Market Share (in %) (IMRB figures) figures) 41 57 49 48

Pepsi Coca Cola

Distribution Network There is no involvement of wholesalers in the distribution of products. It is more like an agent network. The companies have divided the country into various regions and established a franchisee in each region. The franchisees have their own bottling plants

and manage all the day-to-day operations. However, of late, the soft drinks companies have started setting up company owned bottling units/ have been acquiring some of its franchise bottles.

Advantages And Limitations Of Franchisee NetworkAdvantages are

Reduced investment levels in manufacturing equipments:

If a company sources its products from franchisees, it does not require setting up its own manufacturing plant for the purpose. The company thus benefits from reduced investments in manufacturing facilities, inventories of raw materials and other functions required for the manufacturing of the components.

Savings on management time:

As the components are outsourced, the company stands to gain by saving on the management time and cost. The role of the company gets restricted to establishing the systems and in quality control at the franchise locations. Over a period of time the systems implemented stabilize and hence the involvement of the company remains on at the strategic decisions level.

Regular supply of components:

With the development of strong relations with the franchisees, the manufacturer can be assured of a regular supply of components as per the manufacturers specifications.

Reduced interfacing and dealing with labor

The labor and union employees involved in the manufacturing are the responsibility of the franchisee. This is beneficial as it reduces the management time and involvement in solving their issues.

Limitations are

Large volumes

To set up an ancillary base, the company is required to produce large volumes as the franchisee may not be interested in making large investments in the manufacturing facilities if the volumes required to be produced are low. Especially the existing franchisees will not take the risk of tying up with new players.

Financial support

In India, most vendors are small in size and do not have the capital to invest in these equipments, which requires the manufacturers to give them the financial support. This problem becomes intense when the manufacturer has an existing franchisee base and wants to increase the capacity.

INDIAN SOFT DRINK INDUSTRY


Dating back to 1993 the share of Cola In all types of soft drinks was (40%), that of orange (20%), Lime and Lemon (30%) and that of Fruit Juice (10%). Of the Rs. 10,000 crore processed food market, cold beverage % share was 16%. Rs. 1,200 crore Indian soft drink market has grown at an average of 2.5 to 3% from 1984 to 1992. In unit terms, total market, today is about 110 million cases where per capita consumption of soft drinks is in India, which amounts to about 5.3 bottles per year.

10

Having begun in 1949, by 1978, Parle led the Indian soft drink Industry market with a share of 33%. Theyre strongest and highest selling brand, Thums Up contributes to its growth in 1990 when the market share touched 70%. But with arrival of Pepsi it has climbed down to 53% Pepsi had a market share of about 20% in early 90's. Till 1990, Parle's chief rival was pure drinks, but had been constantly losing out to Parle and with arrival of Pepsi it has come down to a more 6% from 10%, and its position in the market is still deteriorating. Pure drinks owner was Late Charanjit Singh and his Company's share was largely affected by less number of bottling plants and a limited distribution network, exactly the same reason why Pepsi could not touch or match Parle in the last few years. Till 1994, Parle had 60 bottlers against 'Pepsi's 20 and now Pepsi's bottlers have increased from 20 to 40 bottlers. At that time Coke had around 2,10,000 retailers against

Pepsi's 1,50,000. 70% of Pepsi' plants are in rural areas. In 1977, a change in the government at the centre led to the exit of Coca Cola, which preferred to quit rather than dilute its equity to 40% in compliance with permissions of FERA. So Campa Cola till late 70's was practically alone in the Cola market. The beginning of 80's saw the emergence/birth of another Cola drink, Thums UP. (Was launched by Parle in 1978-79). By mid 80's there was thrill by Mcdowells, and by late 80's, came in double Cola. Double Cola manufacturing Co., was an NRI-run outfit with its plant at Nasik Double Cola (Maharashtra). (It is a U.S. based double Cola co. licensee, and 5 of its 6 franchises were NRI's)

11

Another threat was that of fruit drinks. In 1988, fruit drinks market was valued at Rs. 40 Crore widening at a vigorous rate of 20%. Parle's FROOTI was the brand leader. Today its market size is about Rs. 90 crore. (But the growth rate in past few years. has slowed down). The reason for success in late 80's of Frooti was clue to not only the packaging revolution, but also the established network of Parle dealers at the right time. The non-aerated drink market comprises of squashes, syrups and concentrates. The 3,000 crore Indian soft drink industry is subdivided into the following categories
Cola : Pepsi, Coke, Thums Up, Sports Cola, Campa Cola

Orange Mango Cloudy Clear

: : : :

Mirinda, Fanta, Gold Spot, Crush, Campa Orange Slice, Maaza, Mangola Teem, Limca, Lemonade Schweppes 7 Up, Citra, Canada Dry

Soda

Lehar Everest, Dukes, Bisleri Club Soda

In India, the share of different types of soft drink varies widely in different regions; Northern region is characterized by larger share of Cola and other flavour while the Southern region has a larger share of other flavour drinks.

12

1.2

COMPANY PROFILE - COCA COLA

The best has been made even better. Some may choose to call this the boldest single marketing move in the history of the packaged-goods business. We simply call it the surest move ever made because the taste of coke was shaped by the taste of the consumer.

- Roberto Goizueta at the launch of New Coke AN INTRODUCTION The Coca-Cola Company, popularly known as COKE was the largest aerated beverage manufacturer in the world. Based in Atlanta, coke recorded sales of $18.81 billion and profits of $3.53 billion in 2003. While sales had increased by 0.3%, profits had dropped substantially by 14.3% Coca Cola was one of the largest employers in the world with a staff strength of 30,000 in 2004. Renowned investor, Warren Buffet held an 8%stake in the company. In terms of, market capitalization, Coke was ranked 9th in the world. Coca-Cola and its subsidiaries operated in about 200 countries across the globe. Nearly 70% of sales and 80% of profits came from its international operations. The company took pride in running what it claimed to be a global business that took care of local needs. The flagship grand, Coca-Cola, was arguably the most valuable brand in the world. The brand contributed nearly 70% of Cokes total sales. Worldwide Coke had two of the three top- selling soft drinks: - COLA CLASSIC (#1) DIET COKES (#3)&PEPSI at (#2). Cokes global market share was nearly 50%in 2003. It had a market share of 44%in the US and over 50%in Japan. Cokes Sprite was the fastest-growing soft drink in the us, and Coke Classic was the leader with a 20% share of the market.
13

In early 2004, CEO Douglas Ivester had the formidable task of proving that he could run Coca-Cola as successfully as his formidable predecessor, Roberto Goizueta. Ivestor faced major challenges ahead of him. During 2003 the global currency crisis had cut sales and profit in several regions. Coke sales had hardly grown in two of its most important overseas markets, Brazil and Japan. In Russia, where Coke had made huge investments exceeding $700 million in the 1990s, the Coke system was operating at only 60% capacity. In the US, Coke was facing stiff competition from a sharper and more focussed Pepsi.

India CEO Alexender Von Behr He will surely add fizz to Coca-Colas operations in the country. After all, ALEXENDER VON BEHR, 41, who took over from departing Coca-Cola India CEO, Donald

Short, has the reputation of being a trouble shooter who, as the companys Director, Operations

(Southeast & west Asia), steered it through the great Southeast Asian meltdown last year. I am excited about my new role .we are committed to developing the industry, says Alexander, who has had varied experience, with companies as diverse as tobacco, giant Phillip Morris and consultancy major McKinsey & Co He is also a keen golfer, is talking about lobbying foe excise duty rationalization on soft drinks. Looks like hes going to kick off his innings with a lot of FIZZZZ.

14

HISTORY Dr. John Pemberton, an Atlanta based pharmacist, developed the original formulation of Coca-Cola in 1886. It was based on a combination of oils; extracts from coca leave (cola nut) and various other additives that together created a stimulating drink. The ingredients were refined to create a refreshing carbonated soda. Pembertons bookkeeper, Frank Robinson, suggested that the product be and also developed a way of lettering Coca-Cola in a distinctively flowing script. On May 8, 1886, Coca-Cola went on sale for the first time in the Jacobs drug store the first coke advertisement appeared in The Atlanta Journal on May29th 1886. Pemberton, with modest help from several investors, spent $73.96 on advertising, but was able to sell only 50 gallons of the syrup at $1per gallon. The product slowly gained acceptance after a heavy outpouring of free sample drinks. In 1888, after Pembertons death, Asa Candler, a wholesaler purchased a stake in the company. Coca-Cola sales boomed even without much advertising support and as many as 61,000 servings were sold during 1889. Sensing the potential that the business offered, Candler decided to wind up his drug business and be associated full time with the Coca-Cola business. By 1891, the complete control of Coca-Cola had passed to Candler for the princely sum of $2,300. In 1892, Candler formed The Coca-Cola Company and, a year later, registered Coca-Cola as a trademark. His principal manufacturing facilities were 1,500-gallon wooden tank and a 100 gallon copper kettle. Only Candler and the associate Robinson Knew the named

formula. It was then passed on by the word of mouth and became know as the most closely guarded secret in American industry. Despite occasional rumors,

15

company sources maintained that cocaine was not an ingredient in the formula of coca-cola. While Robinsan concentrated on the creation and development of advertisements, Candler modified the original formulation developed by Pemberton. Sales grew impressively from 20,000 gallons in 1891 to 76,244 gallons in 1895, thanks to heavy advertising. By 1895 Coca-Cola was being sold in all parts of the US, primarily through distributors and fountain owners. When it was launched, Coca-Cola had been advertised as a drink, which relived mental and physical tension and cured headache. Later, Candler and Robinson repositioned Coca-Cola as a refreshment drink. In the Late 1980s, Coca-Cola expanded its sale network to include cities such as (1894) Chicago (1895) and Philadelphia (1897). In 1899, Benjamin Franklin Thomas & Joseph Whitehead opened the first Coca-Cola bottling plant in Chattanooga. Their first advertisement in the Chattanooga Times read, Drink a bottle of Coca-Cola, 5 cents at all stands, grocers & saloons. Candler granted them exclusive rights to bottle Coca-Cola in the UA, with the Exception of New England, Mississippi & Texas. The partnership between Thomas & Whitehead however did not last long. Though bottling activities had got off to a slow Start, by 1904, there were over 120 manufacturing facilities covering almost every State. Dallas

By 1916, some 153 imitators of Coca-Cola had emerged. The company took many of them to court for mitigation of trademark and patent rights. After winning the legal Battles, Coca-Cola emerged as the dominant player in the beverage industry. The term cola, however, ruled to be generic and other competitors were free to use it.

16

The beginning of the 20th century saw corporations in the US coming under attack for promoting adulterated products and restoring to misleading advertising. Coca-Cola was on the ideal target for such attacks. The US government passed the Pure Food & Drugs Act in June 1906. A case was registered against Coca-Cola and the trial, which opened on March 1911, attracted widespread attention all over the US. Coca-Cola eventually won the case. The decision however was reversed in the Supreme Court. Finally, the case was settled out of the court in 1917 with Coca-Cola agreeing to reduce the caffeine content by half. The legal battle led to Candlers children taking partial control in 1916. Candlor who had by now been elected as the Mayor of Atlanta, continued to pull the strings from behind the scenes. By the end of 1918, however, Candlers children had obtained complete legal control of Coca-Cola. A year later, Coca-Cola was sold to an investment group headed by Ernest Woodruff for $25million- $10 million in cash & $15 million in preferred stock.

The Robert Woodruff Era of Coca-Cola The timing of Woodruffs takeover was bad post war inflation had increased the prices of sugar by 400%, leading to disputes over the fixed price of syrup in their contents. A weak sales force had also contributed to the sales decline. In 1923, Ernests son Robert Woodruff took over the reins of Coca-Cola and was known as Mr. Coke, Mr. Anonymous, & Boss. He believed in concentrating on a single product line and refused to diversify. A Marketing Research department was set up and efforts were made to bring about standardization, to ensure that each bottle of Coke tasted the same. His major decision was to make Coke as popular overseas as it was in the US. While expanding in foreign markets Coke faced several problems- local bothers that did

17

promote the product, Government regulations, trademarks registration, languages, & culture. By 1927, cokes sales had climbed steadily; it survived the great depression and continued to flourish. During the fiftieth anniversary of Coca-Cola, Woodruff remarked we are still the pioneers there are hazards in this talk of success in the long life of CocaCola, this half century is hardly more than a flicker, but we can use it, if we will to light a beacon that will be a guide to us and those who follow it. Even though Pepsi Cola emerged as the biggest competitor to Coke in the 1930s Coke Continued to flourish. By the time US entered II world war Coke was 50 years old bad well established. Paul Austins Tenure of Coca-Cola Robert Woodruff retired in 1995, but continued to play a key role in the companys affairs as a Director & Chairman of the boards finance committee. In 1962, Paul Austin became Cokes tenth President & 4 years later, was selected as Chairman & CEO of the Company. One of the first initiatives of Austin was to launch a Diet Drink. In 1964, Coke also acquired a coffee business. The company developed drinks with new flavors and also targeted food chains, which were fast gaining popularity. Austin launched new initiatives to popularize Coke in the communist bloc countries.

18

By 1969 Coke was being sold in 135 countries. In the 1970s, Coke had to face stiff competition from Pepsi. During the period 1977-79, the Coca-Cola stock actually declined in value despite a 2 for 1 stock split in 1977. Robert Woodruff died in 1985. The Boss nominated Roberto Goizueta, a 48 yr. Old chemical engineer of Cuban origin, as the new CEO.

RECENT HISTORY OF THE COCA-COLA After becoming the President of Coke in 1980, Goizueta nominated Don Keough as his CEO. Goizueta drafted a strategic move by selling off non-performing businesses such as wine, coffee, tea, industrial water treatment, and aquaculture. On the other hand it bought Columbia Pictures in 1982. Coke had identified Columbia Pictures as a promising acquisition. Coca-Cola sources were confident that the synergies Identified could be used to manage assets efficiently and reduce the risk in the motion pictures business. By 1989, however Coke had realized that the Columbia Pictures was not an attractive proposition and sold off its stake to Sony for $1.55 billion. In 1982 -Diet Coke was introduced which was a major success. New Coke, however launched in 1985 was a major embarrassment; Goizueta reacted fast and brought back the old formulation as COCA-COLA CLASSIC. By 1993, Cokes competitive position had improved significantly. Fortune mentioned: gone are the days of the wine, tea, coffee, industrial water treatment, and aquaculture

19

Today Coke is a beverage company. It is more focussed, more single minded and surprisingly, more open about its intentions than any other time in its 107 year history. In 1994, Coke introduced Powerade in the sports drink market & Fruitopia. In 1995, Coke bought Root Beer maker, Barqs. In 1997, Goizueta died of lung cancer and was preceded by DOUGLAS IVESTOR. In 1998, Wendys international fast food joint chose Coke as its exclusive soft-drink supplier for its 4600 restaurants, in the same year Coke announced it would buy the Overseas rights to about 30 Cadbury Schweppes beverage brands, including Dr. Pepper, Crush, Schweppes and Canada Dry mixers. In 1999, Coke announced a 5 yr. Marketing alliance with Seagram Companys Universal Studios, which included a promotional tie up with its music group to reach younger audiences. Coke also launched Dasani, its first domestic bottled water brand, and announced that it would buy 50% of Perus Inca Kola soft-drink company.

COCA-COLA MISSION STATEMENT Coca-Cola exist to Create value for share owners on a long-term basis by building a business that enhances the Coca-Cola companys trademarks this also is its ultimate commitment. As the worlds largest beverage company, it refresh that world, it does this by developing superior soft drinks, both carbonated and non-carbonated, and Profitable nonalcoholic beverage systems that create value for the company, the bottling partners are their customers, their share owners and the communities in which they do business.

20

In creating value, they succeed or fail based on their ability to perform as worthy stewards of several key assets. 1) Coca-Cola the worlds most, recognized trademark and other highly valued trademarks. 2) 3) The Worlds most effective and pervasive distribution system. Satisfied customers, who make a good profit selling Coca-Cola Product. Coca-Colas people, are ultimately responsible for building this enterprise. Coca-Cola abundant resources must be intelligently allocated. Its strong global leadership in the beverage industry in particular and in the business world is general.

4) 5) 6)

The Worlds Largest Beverage Company While much of the world has changed since 1886, with the old giving way to the new at almost daily strokes, what has withstood the test and taste of time, binding the young and old to enjoy their moments of simple pleasure and eternal joy is the magic of Coca-Cola. And this year, consumers the world over will reach for products of The Coca-Cola Company more than a billion times every single day. The world s largest beverage company has come a long way since its modest beginnings more than a century ago... The Coca-Cola Company is the world's largest beverage company. Along with CocaCola, recognized as the world's most valuable brand, the Company markets four of the world's top five soft drink brands, including Diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Through the world's largest beverage

21

distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.3 billion servings each day About Coca-Cola India Coca-Cola India refreshes millions of consumers throughout the country with an exciting range of beverages, including Coca-Cola, Diet Coke, Thums Up, Fanta, Limca, Sprite, Maaza, Georgia, Georgia Gold, Kinley and Kinley Club Soda through a network of more than one million outlets. The company has invested more than US$ 1 billion in its Indian operations, emerging as one of the countrys top international investors and companys business operations engage approximately 1, 50,000 people in India. Coca-Cola Advertisements Its the Real thing

Born In a Kettle, Charming the World Forever John Stith Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. It was May of 1886 when the pharmacist concocted a caramel-coloured syrup in a three-legged brass kettle in his backyard. He first "distributed" the new product by carrying Coca-Cola in a jug down the street to Jacobs Pharmacy. For five cents, consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design or accident, carbonated water was teamed with the new syrup, producing a drink that was proclaimed "Delicious and Refreshing." John Pemberton s partner and bookkeeper, Frank M. Robinson, suggested the name and penned "Coca-Cola" in the unique flowing script that is famous worldwide today. Mr. Robinson thought "the two Cs would look well in advertising." In 1886, sales of Coca-Cola averaged nine drinks per day.

The Growing Corporate With an Ever-Refreshing Drink That first year, Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the number one soft drink brand ever since. For his efforts, Pemberton grossed ------ $50 and spent----- $73.96 on advertising. By 1891, Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the

22

Coca-Cola business. Within four years, his merchandising flair helped expand consumption of Coca-Cola to every state and territory. In 1919, The Coca-Cola Company was sold to a group of investors for---- $25 million. Robert W. Woodruff became president of The Coca-Cola Company in 1923, and his more than six decades of leadership took the business to unrivaled heights of commercial success, making CocaCola an institution the world over. Global Bottling System Today, our products reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by The Coca-Cola Company, our global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide so that it reaches every part of the world. .

The Coca-Cola Company is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for our consumers.

The Bottling History Of Coca-Cola Coca-Cola began as a fountain product, but candy merchant Joseph A. Biedenharn of Mississippi was looking for a way to serve this refreshing beverage at picnics. He began offering bottled Coca-Cola, using syrup shipped from Atlanta, during an especially busy summer in 1894. In 1899, large-scale bottling became possible when Asa Candler granted exclusive bottling rights to Joseph B. Whitehead and Benjamin F. Thomas of Chattanooga, Tennessee. The contract marked the beginning of The Coca-Cola Company s unique independent bottling system that remains the foundation of Company soft drink operations.

23

Coca-Cola Bottles As Memorable As the Design Back then, soda bottles were all very similar. And Coca-Cola had many imitators, which consumers would be unable to identify until they took a sip. The answer was to create a distinct bottle for Coca-Cola. As a result, the contour bottle for Coca-Cola with the shape now known around the world was developed in 1915 by the Root Glass Company. Coca-Cola Gets the First Change of Taste in 1886 In 1985, a new cola emerged from laboratory research. Through internal evaluations and thousands of blind taste tests, consumers said they preferred it over both Coca-Cola and its primary competition. As a result, in April 1985, the Company proudly introduced the new taste of Coke - the first change in the secret formula since the product was created in 1886 Trademark Registration Of Coca-Cola The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977; an honor awarded very few packages. Extension Of the Most Cherished Trademark In 1982, The Coca-Cola Company introduced diet Coke to U.S. consumers, marking the first extension of the Company s most precious trademark to another product. Later years saw the introduction of additional products bearing the Coca-Cola name, which now encompasses a powerful line of cola products. Coca-Cola Classic Ruling Since 1886 The launch of Coke with the new taste took place in the United States and Canada. Consumers responded with an unprecedented-and now famous-outpouring of loyalty and affection for the original formula. In July 1985, the original formula of Coca-Cola

24

returned as Coca-Cola classic. In 1986, Coca-Cola classic became, and still remains, the nation s top-selling soft drink. Its Trademarks the Worlds Most Valuable Assets Our most valuable assets happen to be the trademarks we possess. For Coca-Cola, the most drunk soft drink on earth is one of the world s best-known and most admired trademarks, recognized by more than 90 percent of the world s population.

Interestingly, the world that is touched by our cherished drinks for every moment, the Coca-Cola trademarks happen not only to be our most valuable assets but of the entire earth. COCA COLA INDIA LTD

Brings Back the Fizz to India Coca-Cola, the corporate nourishing the global community with the worlds largest selling soft drink concentrates since 1886, returned to India in 1993 after a gap of 16 years giving a new thumbs up to the Indian Soft Drink Market. In the same year, the Company took over ownership of the nation's top soft-drink brands and bottling network. No wonder, our brands have assumed an iconic status in the minds of the consumers. A Healthy Growth To The Indian Economy Ever Since, Coca-Cola India has made significant investments to build and continually consolidate its business in the country, including new production facilities, waste water treatment plants, distribution systems and marketing channels so to reach to everybody. Coca-Cola India is among the countrys top international investors, having invested more than US$ 1 billion in India within a decade of its presence and further pledged another US$ 100 million in 2003 for its operations. A Pure Commitment to the Indian Economy. The Company has not only shacked up the Indian carbonated drinks market, and given consumers the pleasure of world-class drinks

25

to fill up their hydration; refreshment & nutrition needs but has also been instrumental in giving an exponential growth to job opportunities. Creating Enormous Job Opportunities With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through our vast procurement, supply and distribution system. The vast Indian operation comprises 25 wholly-owned- company-owned bottling operations and another 24 franchisee-owned bottling operations. That apart, a network of 21 contract-packers also manufactures a range of products for the Company.

On the distribution front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian cities constantly keep our brands available in every nook and corner of even the countrys remotest areas. PRODUCTS

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. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.

26

Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong associations with cricket, the thriving cinema industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, CocaCola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to make it India's favorite soft-drink brand. In 2003, Coke was available for just Rs. 5 across the country and this pricing initiative together with improved distribution ensured that all brands in the portfolio grew leaps and bounds. Coca-Cola had signed on various celebrities including movie stars such as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in the past and today, its brand ambassadors are Aamir Khan, Aishwarya Rai, Vivek Oberoi and cricketer Virendra Sehwag.

Strong Cola Taste, Exciting Personality Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.

27

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in 1993.

Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst" Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends.

Lime n' lemoni Limca , the drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country. The sharp fizz and lemoni bite combined with the single minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new person.

28

Worldwide Sprite is ranked as the No. 4 soft drink &is sold in more than 190 countries. In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite hasstood for a straight forward and honest attitude. Its clear crisp refers hing taste encourages the today's youth to trust their instincts ,influence them to be true to who they are and to obey their thirst.

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink category. Over the years, brand Maaza has become synonymous with Mango. This has been the result of such successful campaigns like "Taaza Mango,Maaza Mango" and "Botal mein Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the real experience of fruit. The current advertising of Maaza positions it as an enabler of fun friendship moments between moms and kids as moms trust the brand and the kids love its taste. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"

29

Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our product. That's why we go through rigorous testing procedures at each and every location where Kinley is produced.

In the company's journey towards the vision 'leading the beverage revolution in India', now even Garam matlab Coca-Cola. A hot new launch from Coca-Cola India. Georgia, quality tea and coffee served from state of the art vending machines is positioned to tap into the nations biggest beverage category. Georgia, which promises a great tasting, consistent, hygienic and affordable cuppa is available in a range of sizzling flavours, adrak, elaichi, masala and plain tea

cappuccino, mochaccino and regular coffee. Georgia is currently in the roll out stage after a successful launch in Delhi & Kolkata. Georgia aims to become the consumers preferred choice of hot beverage when he is on the go, the brand is well on course to achieving its vision.

30

While Georgia is a mass market offering, Georgia Gold is the premium brand which caters to the connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available exclusively at McDonalds outlets across the country Georgia Gold has driven coffee sales through the roof. The success of hot beverages from Georgia Gold has resulted in extension into the cold category, with the introduction of Ice Tea and Cold Coffee

Minute Maid - A 62 year success story The history of the Minute Maid brand goes as far back as 1945 when the Florida Foods Corporation developed orange juice powder. The company developed a process that eliminated 80 percent of the water in orange juice, forming a frozen concentrate that when reconstituted created orange juice. They branded it Minute Maid, a name connoting the convenience and the ease of preparation (In a minute). Minute Maid- One of the world's largest juice and juice drink brands Over the years, through innovations and unmatched consumer experience provided in over 60 countries, Minute Maid brand has clearly become one of the world's largest juice and juice drink brands. The launch of Minute Maid Pulpy Orange in India (starting with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category. Quality Is Our Highest Business Objective The Coca-Cola Company exists to benefit and refresh everyone it touches. For us, Quality is more than just something we taste or see or measure. It shows in our every

31

action. We relentlessly strive to exceed the world's ever-changing expectations because keeping our Quality promise in the marketplace is our highest business objective and our enduring obligation.

1.3

PROBLEMS OF THE COMPANY


The company withheld a lot of information, which they termed as confidential, as a result of which secondly data had to be reviled upon.

The exhaustive nature of the project comprising of 2 divisions of the company took plenty amount of time in analyzing and prosecuting the report.

It has been a problem collecting secondary data on divisions like HR and Public
relation-as there were no release in any publications or was there a mention of it on the company web site. As a result most information was collected though my

primary sources and regular Visits to the personnel concerned, and interviews.

1.4 COMPETITION INFORMATION


Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke. In South and Central America, Kola Real, known as Big Cola in Mexico, is a fast growing competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola. However, The Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally-produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales. In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased Thums Up in 1993. Tropicola, a

32

domestic drink, is served in Cuba instead of Coca-Cola, in which there exists a United States embargo. Mecca Cola, in the Middle East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China, Future cola or can be bought. In Slovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's biggest supermarket chain, Mercator. Finally, in Madagascar, Classiko Cola made by Tiko Group the largest manufactured company in the country is a serious competitor to Coca-Cola in many regions. Cadbury Schweppes plc Major global beverage and confectionery company. Manufactures, markets, and distributes branded products around the world. Including Schweppes, Dr Pepper, and Snapple. Clearly Canadian One of the pioneers of the New Age or Alternative beverage industry, bottling natural and flavored sparkling water Cott Corporation Leading worldwide supplier of premium retailer branded beverages and the world's fourth largest soft drink company. Dr. Pepper/Seven Up Dr. Pepper is the oldest major soft drink in the U.S. and the principal brand of Dr. Pepper/Seven Up, Inc.

33

Nantucket Nectars The Juice Guys started their business delivering soft drinks and other useful items to visiting yachtsmen in Nantucket Harbor in 1989. They now supply 35 states, Canada, and other countries.

Pepsi Bottling Group World's largest manufacturer, seller and distributor of Pepsi-Cola beverages with operations in the U.S., Canada, Greece, Russia, Spain and Turkey.

PepsiCo Pepsi-Cola Company, Frito-Lay Company, and Tropicana Products, Inc.

Vermont Pure Springs Bottlers of Vermont Pure Natural Spring Water, taken from the Green Mountains of Vermont after being naturally filtered for up to 20 years.

34

1.5

SWOT ANALYSIS

SWOT Analysis of Soft Drink Industry in relation to Coke

Strengths Carbonated soft drink growth 10-15%

Weaknesses Weak infrastructure (esp. Cooling) Small retailers, less shelf space Heavy excise duty (40%), recently have come down a little Cans have to be imported at high duty rates. Problems of empty bottles

Estimated PCC to increase to 6-8 bottles

Opportunities

Threats Political risks Coke and Pepsi indulging in

Low PCC as compared to neighboring countries Growing rural market internecine competition Rising disposable income Changing consumer trends due to satellite TV.

35

CHAPTER-2 RESEARCH METHODOLOGY

2.1

SIGNIFICANCE

The significance of the study is basically is studying the Indian Soft drink industry. Our observation is highly focused on studying the Indian Soft drink industry scenario in the Cola market in the 1990s and studying how Indian consumers have responded to the entrance of the MNCs like Pepsi-Cola and Coke-Cola, 1990 onwards, keeping in mind their growth pattern and their respective market shares. There has been a focused effort to study the various promotional schemes that Coca -Cola India has to offer to its consumers and the effect of these schemes on the consumer buying behavior has been studied. The various Sales Promotion techniques that have been used by Coca-Cola have been discussed through the project in different contexts.

2.2

MANAGERIAL USEFULLNESS OF THE STUDY

TARGET AUDIENCE FOR COCA-COLA. Has everyone as its target audience, irrespective of sex, age, income, and so on which succeeded by appealing to everybody Though targeted at the youth, its appeal is nearly universal and it is believed that at least half the world's population has drunk a bottle of this dark, sweetened and flavoured water. It is true Coca-Cola is drunk by young and old, male or female, in home and, in large quantities, out of home. It is consumed by itself or as a mixture for almost any strong spirit be it rum or whisky; vodka or cheap brandy. Coca-Cola will target diverse groups including a family target audience, a single person eating or drinking on the run, older people, children of all ages and teenagers. Within the different groups, they may segment further to develop more sophisticated marketing programmes. The development of an umbrella brand strategy provides the marketer with a core set of brand values. This umbrella can then be layered with specific initiatives to reach distinct target audience segments.

37

POSITIONING Some of the more successful logo designs are able to translate and adapt a central guiding theme such as Just Do It or Always Coca-Cola. The central theme allows the brand values to be maintained and updated or refreshed regularly. In this way, they act as a guide for the brand. Nevertheless, there is still the possibility to express the positioning locally but within the framework of a central strategy. LOCALISATION In the past, brands were often global through a central strategy or they were very decentralised. The former was more efficient but insensitive to local conditions, the latter far more sensitive but less able to take advantage of economies of scale Coca-Cola recently launched Smart, the first carbonated soft drink from an international company specifically designed for the Chinese market PRODUCT DIFFERENTIATION Its product features, performance, style & design, attributes and the brand image it holds. THE SYMBOL OF QUALITY

Customer and Consumer Satisfaction A Responsible Citizen of the World

FACTS ABOUT PRODUCT Main Attributes of the Brand 1. Is the Product High/Dull/Average Interest to Target audience- high interest to the TA 2. What benefits does it incorporate- relieves the tension of thirst immediately especially in summers. 3. Comparison with competitive Brands Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. Around the world, some local brands do compete with Coke. Consumer mostly like the ad creative of coca cola and taste wise like Pepsi better.

38

ADVERTISING Advertising has played an important role in the success of our products since our first newspaper ad in 1886, which read, "Coca-Cola. Delicious! Refreshing! Exhilarating! Invigourating!" The Company uses advertising to trigger desire as often and in as many ways as possible. Throughout the years, slogans for Coca-Cola have always been memorable. Here are some highlights: 2000 - Coca-Cola Enjoy 1993 - Always Coca-Cola 1990 - Can t Beat the Real Thing 1989 - Can t Beat the Feeling 1986 - Red, White and You 1982 - Coke Is It 1976 - Coke Adds Life 1971 - I d Like to Buy the World a Coke 1969 - It s the Real Thing 1963 - Things Go Better with Coke 1959- Be Really Refreshed 1942- It s the Real Thing 1936- It s the Refreshing Thing To Do Fine illustrations by noted artists, including Norman Rockwell and N. C. Wyeth, were the hallmark of early campaigns in premier magazines. Artist Haddon Sundblom s portraits for holiday ads, which began in the 1930s, helped mould the national image of a red-suited Santa Claus. Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high standard of quality for other products around the world. The Company recognizes that Coca-Cola belongs to the billions of consumers in every corner of the globe who have chosen it as their favorite soft drink. Our advertising reflects that special relationship between consumers and the simple moments of pleasure they have come to associate with Coca-Cola. Coca-Cola's advertising has had a significant impact on American culture, and is frequently credited with the "invention" of the modern image of Santa Claus as an old

39

man in red-and-white garments; however, while the company did in fact start promoting this image in the 1930s in its winter advertising campaigns, it was already common before that. In fact, Coca-Cola was not even the first soft drink company to utilize the modern image Santa Claus in its advertising White Rock Beverages used Santa in advertisements for its ginger ale in 1923 after first using him to sell mineral water in 1915. n the 1970s, a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a popular hit single. Coca-Cola has a policy of avoiding using children younger than the age of 12 in any of its advertising. This decision was made as a result of a lawsuit from the beginning of the 20th century that alleged that Coke's caffeine content was dangerous to children. However, in recent times, this has not stopped the company from targeting young consumers. In addition, it has not been disclosed in exact terms how safe Coke is for consumption by young children (or pregnant mothers). Coke's advertising has been rather pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. Advertising for Coke is now almost ubiquitous, especially in southern areas of North America, such as Atlanta, where Coke was born. Some of the memorable Coca-Cola television commercials between 1960 through 1986, were written and produced by former Atlanta radio veteran Don Naylor (WGST 19361950, WAGA 1951-1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes, and popular singers of the day. During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests essentially demonstrating that: "Fifty percent of the participants who said they preferred Coke actually chose the Pepsi". Statisticians were quick to point out the problematic nature of a 50/50 result; that most likely all this really showed was that in blind tests, most people simply cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees

40

deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market. Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed three commercials for the company. In 1994 to commemorate her 5 years with the company, Coca-Cola issued special Selena coke bottles. In an attempt to broaden its portfolio, Coca-Cola purchased Columbia Pictures in 1982. Columbia provided subtle publicity through Coke product placements in many of its films while under Coke's ownership. However, after a few early successes, Columbia began to under-perform, and was dropped by the company in 1989. Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it" (see Coca-Cola slogans). INDIAN ADVERTISING AWARD In India too, the Companys thrust has always been on reaching the core of the consumers heart through advertising excellence. In fact, we have produced some of the most memorable campaigns of the times. Consequently, in early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of the Year awards for the Thanda Matlab Coca-Cola all-media campaign. SPONSORSHIP OF SPORTING EVENTS Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928 games in Amsterdam and has been an Olympics sponsor ever since. This corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Since 1978 Coca-Cola has sponsored each FIFA World Cup and other competitions organised by FIFA. In fact, one of the FIFA tournament trophy: FIFA World Youth Championship from Tunisia in 1977 to Malaysia in 1997 was called "FIFA - Coca Cola Cup".[34] In addition, Coca-Cola sponsors the annual Coca-Cola 600 for the NASCAR Nextel Cup auto racing series at Lowe's Motor Speedway in Charlotte, North Carolina. Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, National

41

Basketball Association and the National Hockey League, as well as with many teams within those leagues. Coca-Cola is the official soft drink of the Georgia Bulldogs. In England, Coca-Cola is the main sponsor of The Football League, a name given to the three professional divisions below the Premier League in football (soccer). It is also responsible for the renaming of these divisions- until the advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three. Since 2004, the divisions have been known as The Championship (equiv. of Division 1), League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has caused unrest amongst some fans that see it as farcical that the third tier of English Football is now called "League One." A Fukuoka City rugby team are known as the Coca Cola West Red Sparks.

2.3

OBJECTIVE OF THE STUDY


To deliver the message to the target audience that food tastes best when had with Coca cola. To carry forward the concept of Thanda being synonymous with a bottle of CocaCola To project the attitude of the brand in a very entertaining and engaging manner To connect the brand with the youth of the country. To spruce up its marketing campaign for the summer. To have an edge over the competitor e.g. Pepsi and to increase the demand and sales of Coca cola during the coming summer season. The basic objective is to generate mass awareness in Indian market about Coca cola and was basically done for brand recall Using wit and humor the new campaign speaks the language of an empowered generation.

42

The campaign encapsulates the new-found confidence of the Indian youth and using wit and humor speaks the language of an empowered generation

2.4

SCOPE OF THE STUDY


Our area of study is basically is studying the Indian Soft drink industry. Our observation is highly focused on studying the Indian Soft drink industry scenario in the Cola market in the 1990s and studying how Indian consumers have responded to the entrance of the MNCs like Pepsi-Cola and Coke-Cola, 1990 onwards, keeping in mind their growth pattern and their respective market shares. There has been a focused effort to study the various promotional schemes that Coca -Cola India has to offer to its consumers and the effect of these schemes on the consumer buying behavior has been studied. The various Sales Promotion techniques that have been used by Coca-Cola have been discussed through the project in different contexts. An attempt has also been made to study the kind of Advertising Policies and procedures that are being followed at the Coca-Cola Company.

2.5

RESEARCH METHODOLOGY
The work done in the field of advertising & Marketing in the Coca-Cola Company is examined. The fundamental objective was to search for secondary data or information from newspapers, libraries and make a survey of the knowledgeable person in the subject to obtain further information. This project is focused on studying Coca-Colas market share observing their growth and seeking how much their market share is directly proportional to their sales promotion and advertising expenses.

A questionnaire has been made and analyzed to see the impact of Coke brand on consumers and their perceptions of Coca-Cola. Our area of emphasis would be to make a study of Coke-Cola primarily in the Indian soft drink industry. A survey

43

of the Indian Soft Drink Industry has been done on the basis of secondary data and the effect of sales promotion strategies on the consumer buying behavior has been observed through a questionnaire as a source of primary data. A questionnaire has also been drafted to interview the employees working in Coca-Cola so as to analyze the advertising Policies adopted. Geographical scope (including Delhi and Gurgaon) ------------ Survey.

2.6

LIMITATIONS OF THE STUDY


Time Constrain Tendency/Attitude of the persons being interviewed Respondents from Delhi and NCR were only taken. Research was restricted to a sample size of only 25 respondents only.

44

CHAPTER-3 CONCEPTUAL DISCUSSION

THE COCA COLA THANDE KA TADKA AD CAMPAIGN Aamir Khan Adds More "Tadka" To Coca-Colas Summer Campaign Campaign underlines the excellent taste compatibility of Coca-Cola with food

Part of Coca-Colas Thande Ka Tadka Campaign this summer, Aamir Khan is all set to be seen in a new tourist avatar a first of its kind look The latest Coca-Cola brand initiative is a class act powerful messaging combined with rare wit and unmatched acting prowess, presented by the Bollywood Super Star.

Ad. conceptualized by the acclaimed guru of Indian advertising Prasoon Joshi: Directed by the talented Pradip Sarkar of Parineeta fame: and produced by Apocalypso productions.

To hit airwaves across all leading channels on April 26 2006 New brand initiative to be supported by an Integrated Food Campaign including a strong on the ground program.

Coca-Cola, worlds largest beverage company continues its trend of creating the most powerful and appealing brand messaging for its consumers in India. The Coca-Cola Thande ka Tadka campaign, earlier launched by countrys favorite Miss World and Bollywood actor Aishwarya Rai, now takes a big leap forward with Aamir Khan. In the latest brand initiative, Aamir makes a clever and funny appearance as a tourist who not only underlines the message of How food tastes best when had with Coca-Cola, but also reinforces the entire concept of Thanda being synonymous with a bottle of CocaCola. The new brand campaign launches on all leading TV channels on 26th April 2006. According to Vikas Gupta, VP-Marketing Coca-Cola India, "Thanda is synonymous with Coca-Cola. It is also an established fact that food tastes best, when had with the worlds favorite soft drink. To blend and deliver all these messages to the consumer, the new brand initiative utilizes Aamirs humour and acting skills. With the recipe now complete, the initiative further enhances the impact of Coca-Colas brand campaign for the summer - "Thande ka Tadka. The new brand initiative has been conceptualized by the acclaimed

46

advertising guru Prasoon Joshi and has been directed by the talented Pradip Sarkar of Parineeta fame.

According to Prasoon Joshi, Regional Creative Director, South and South East Asia, McCann Erickson, The challenge here was to carry forward the feelings of intense positivism seen in the Piyo Sar Utha Ke campaign and take it forward to an even higher realm. If you notice while piyo sar utha ke worked within the framework of idealismhope-belief, Thande Ka Tadka takes that same belief and converts it into action all the while supported by your very own Coca-Cola. He added, The ad will clearly enhance a more definitive role for Coca-Cola in the consumers life. In addition to above the line initiatives,

Consumer Insights As per studies carried out across soft drink consumers, Coca-Cola has proved to be a beverage which actually enhances the over all food experience because of its unique taste profile. The new advertising initiative is thus aimed at leveraging such consumer insights- enabling Coca-Cola to play a more definitive role in a consumers life by way of an ideal meal accompaniment. Story Board The new Coca-Cola commercial features Aamir mistaken for a `Tourist entering a restaurant and being shown with a special overpriced menu by the cunning manager (trying to fool an unsuspecting tourist). But Aamir asks to be served with Thanda food. The puzzled restaurant manager later on discovers that is actually being asked is - Thanda (Coca-Cola) and food. The denouement is what will leave the audience pleasantly surprised. Aamirs make up man Jogendra G. Gupta needs a special mention for his superb presentation of Aamirs tourist look. Aishwarya Rai To Add " Thande Ka Tadka" To Coca-Cola

47

Coca-Cola Thande ka Tadka brand campaign encapsulates the new-found confidence of the Indian youth.

Using wit and humor the new campaign speaks the language of an empowered generation.

Launch of the new brand initiative, includes unleashing an all-new TV commercial featuring Aishwarya Rai as the central protagonist.

The new ad has been conceptualized by the prolific ad veteran Prasoon Joshi of McCann Erickson and brought to life by the talented direction of Abhijit Chaudhuri of Black Magic Productions.

Coca-Cola Thande ka Tadka ads to be aired in different variants Campaign to go full steam ahead across all leading channels from 26th March 06 onwards.

Coca-Cola, is all set to sizzle consumers this summer as it unleashes a catchy new brand campaign - Coca-Cola Thande Ka Tadka. Launch of the new brand initiative, includes unleashing an all-new TV commercial featuring Aishwarya Rai as the central protagonist. The campaign encapsulates the new-found confidence of the Indian youth and using wit and humor speaks the language of an empowered generation. Coca-Cola Thande Ka Tadka is a refreshing take on the current youth mindset of purposeful action and a self empowered point of view.

The ad for the new campaign has been conceptualized by the prolific ad veteran Prasoon Joshi of McCann Erickson and brought to life by the talented direction of Abhijit Chaudhuri of Black Magic Productions. The Coca-Cola Thande ka Tadka ads would hit the TV screens in different variants. The entire campaign will go full steam ahead across all leading TV channels from 26th March 06 onwards. According to Mr. Vikas Gupta, Vice President Marketing, Coca-Cola India, The youth of today is rearing to take on the world. They are smart, energetic, focused, and confident enough to transform their aspirations into reality. Coca Colas Thande ka Tadka campaign connects instantly with this evolved persona. The campaign ad features

48

Aishwarya in a totally new avatar. She uses emotions like wit and humor and encourages us all to take control of ones life without being intimidated. The new Coca-Cola Thande Ka Tadka series adds yet another dimension and is a natural progression from the earlier campaigns that the company has run. With Thanda Matlab Coca-Cola, the Brand celebrated pride in our national roots and the deep-rooted Indian-ness within all of us.

According to Prasoon Joshi, Regional Creative Director. South Asia & South East Asia, McCann Erickson, The sheer power of the Coca-Cola brand lies in its multi dimensional appeal. Each new dimension when explored, gives a consumer yet another chance to strengthen his or her emotional connect with the brand. Adding further Prasoon said The Coca-Cola Thande ka Tadka campaign projects the attitude of the brand in a very entertaining and engaging manner. It also exploits the youth lingo which helps the brand connect with the youth of the country.

Details About the Coca-Cola Thande Ka Tadka ad featuring Aishwarya Rai

The TVC begins with Aishwarya Rai being whistled at by a group of her own college boys. But, instead of shying away from the rowdy situation she takes the opportunity to change the situation around in an engaging and humorous way. What follows is an entertaining lesson by Aishwarya Rai on the art of whistling (getting it right is many a youth aspiration). The guys are clean bowled not only by her uncommon talent but also her swashbuckling attitude. This end result aptly captures the sign off Thande ka Tadka.

49

ADVERTISEMENT CAMPAIGN SELECTED FOR THE PROJECT Coca colas THANDE KA TADKA featuring Aamir Khan

DETAILS OF THE ADVERTISEMENT

The advertisement opens with Aamir Khan, who has been given the look and get up of a Japanese tourist, entering a restaurant. The manager thinks that he can easily corn this unsuspecting tourist and gives him a special overpriced menu. But Aamir refuses this and instead asks for Thanda Food.

He is shown the menu card the rates go Rs.200 for samosa an so on he points for thanda then samosa and thanda then pakoda but the manager says no sir no thanda, we serve fresh food then Aamir goes in gets two cokes an food then makes the staff and manager his point clear that he need coke and food (note:all this time he doesnt speak at all) then after eating like hell he says in hardcore punjabi thande ka saath khana changa (with coke food tastes gr8!!!!!!) the staff is surprised the waiter prompts sab japani toh hindi bolta hai. Then Aamir says japani wapani nahi hoon mai, woh toh main madhumakhiki chatte ki photo utaar raha taaa unhone meri utardi, ab mein tumhari utaroongaa, doso ka samosaaaa, laoo bill laoooo !!!!!!!!! (I am not a japanese I was taking a photo of honeycomb an they bit my face thats why I look like japanese...now I will teach u a lesson .......Rs.200 for a samosa or what.........get me the bill)........

The manager is perplexed and only later on understands that his wise tourist is asking for Thanda (Coca-Cola) and food. Coca-Cola with this ad campaign is seeking to send out the message that food should be had along with Coca-Cola and it also re-emphasizes the synonymous relation between Coca-Cola and Thanda

50

PERSUASIVE TECHNIQUES USED TO ACHIEVE OBJECTIVES Aamir Khan used as brand ambassador for the add campaign to connect the brand with the youth of the country and to To carry forward the concept of Thanda being synonymous with a bottle of Coca-Cola Punchline Thande ke saath khana changa used to deliver the message of the advertisement and also to develop a recall factor through this punchline. The new brand initiative utilises Aamir's humour and acting skills to further enhances the impact of Coca-Cola's brand campaign for the summer. The creative content used to have the long lasting impact on the consumers mind.

BENEFIT SEGMENT FOR THE ADVERT Youth of the country A combination of all, influencer, decider, buyer and consumer. Children/ kids who like to view humorous advertisements Has everyone as its target audience, irrespective of sex, age, income, and so on which succeeded by appealing to everybody

CELEBRITY USED IN THE ADVERTISEMENT CAMPAIGN: Aamir Khan, who has been given the look and get up of a Japanese tourist thus creating humour in the advertisement, Aamir has been given the complete detailed look of a Japanese tourist with tiny eyes and even the attire of a tourist. And his acting skills and charm adds the final touches to the ad

51

RATIONALE BEHIND FEATURING AAMIR KHAN IN THIS AD CAMPAIGN: The main reason for featuring Aamir khan in this advertisement is the fact that he represents youth. He can be easily connected with the young generation of today. This is important in todays scenario since the youth of today is rearing to take on the world. They are smart, energetic, focused, and confident enough to transform their aspirations into reality. The `Thande ka Tadka' campaign connects instantly with this evolved persona through smart, young and energetic appearance of Aamir Khan. He exploits the youth lingo, which helps the brand connect with the youth of the country. To reinforces the concept of Thanda as being synonymous with a bottle of CocaCola. Aamir makes a clever and funny appearance as a tourist who not only underlines the message of How food tastes best when had with Coca-Cola FACTS ABOUT THE CUSTOMERS/TARGET AUDIENCE Demographically: Almost everybody, irrespective of sex, age, income, and so on. Though targeted at the youth, its appeal is nearly universal. Psycho graphically: Children, Students, working people, people who stay at home and have the desire to make their foos tastes great and have a desire to counter their thirst. Behavioral: Frequent buyers or consumers and all those who regularly eat out and visit food junctions. Also to the people who want to have something with their food even at home. Geographically: All the people around India, urban as well as rural population. Target people living in very remote areas as well.

52

MEDIA GRAPHICS OF TARGET AUDIENCE:

Which media/vehicles does he consult- Daily news papers, national level magazines, TV Channels Like AAJTAK, Star News, India TV, star plus, Sony television, zee TV etc, Radio channels like Radio Mirchi, red FM etc.

When during the day read newspapers every morning, watch television mainly during Night and On weekends both day and night (between 6-10 P.M.) read magazines whenever get time and listen to radio during day time in between reading newspapers and watching television.

Why For Entertainment and Awareness. Involvement with vehicles Very High especially with television.

BUYING BEHAVIOUR OF THE CONSUMER 1. What motivates him to buy Desire to counter the thirst immediately To make the taste of the food great with coca cola. 2. When does he buy Casual buying habits. Whenever thirsty or partying and sometimes to make the food taste great. No regular pattern of buying the product. 3. Does he need any purchase facilitation information Not much information is usually collected by the consumer except for the advertisements shown on the television. These advertisements are mainly for brand recall and entertainment and not much for the reason of information search. The consumers were only active for information search when the dispute of pesticides being found in the brand was there. 4. What is his level of involvement with purchase High involvement is there since it is a matter of the health of the consumers and are very particular regarding the pesticide content in their soft drink. 5. Does he buy the product rationally or emotionally or both Both

53

CREATIVE BRIEF 1. Typical Person the ad is talking to Everybody and of all the age group people irrespective of income group. Any body who have the desire to relieve themselves from the thirst. 2. Main benefits the advertisement is promising o Relieve from thirst o Desire to make the food taste great o Exciting life style. o Entertainment o Using wit and humor the new campaign speaks the language of an empowered generation o Beverage which actually enhances the over all food experience because of its unique taste profile. The new advertising initiative is thus aimed at leveraging such consumer insights- enabling Coca-Cola to play a more definitive role in a consumers life by way of an ideal meal accompaniment. 3. Message of the advertisement To deliver the message to the target audience that food tastes best When had with Coca cola. To carry forward the concept of Thanda being synonymous with a Bottle of Coca-Cola 4. Motivating factor used to influence customers Aamir khan representing youth, new look of Aamir as a Japanese visitor, the music played in the advertisement and the thrilling experience of enjoying the taste of coca cola with food. 5. Tone, Style of Advertising humorous, Convincing, creative, out of box.

54

6. Mandatory Inclusions The punchline THANDE KE SAATH KHANA CHANGA, Coca cola brand logo, bottle of coke. MESSAGE STRATEGY 1.Media vehicle used TV ads and print media ads are used. The purpose of the ad is to draw attention, increase awareness, building brand attitude and retention of message. To hit airwaves across all leading channels from April 26 2006 Coca-Cola Thande ka Tadka ads to be aired in different variants 2.Appeal used the new look of Aamir Khan, the punchline used THANDE KE SAATH KHANA CHANGA PRODUCTION OF ADVERTISEMENT

The latest Coca-Cola brand initiative is a class act powerful messaging combined with rare wit and unmatched acting prowess, presented by the Bollywood Super Star- Aamir Khan

Ad. conceptualized by the acclaimed guru of Indian advertising Prasoon Joshi: Directed by the talented Pradip Sarkar of Parineeta fame: and produced by Apocalypso productions.

MEDIA STRATEGY 1. Who was to be reached, When, Where, How Often

Almost everybody, irrespective of sex, age, income, and so on. Though targeted at the youth, its appeal is nearly universal

Between 5 p.m. 11 p.m. and sometimes in the afternoon. AAJTAK, STAR NEWS, ZEE TV, SONY TV,TIMENOW,AXN, Star World, Star Movies, HBO, ESPN . (During Prime Time)

Two three times a day

2. Various media options exercised TV, Outdoor activities, print and advertisements in magazines.

55

3. Various Media Vehicles used AAJTAK, STAR NEWS,ZEE TV,SONY TV,TIMES NOW,AXN, Star World, Star Movies, HBO, ESPN, AXN, Discovery (14 channels), Doordarshan, almost all the newspapers and many magazines. 4. Linguistically-Hindi mainly and some English words are being used as well. 5. Time duration of the advertisement 2 mins. 6. Clutter in the Vehicle Monday to Thursday not heavy advertising, Weekends Heavy advertising and in the night also heavy advertising as compared to noon hours. REASON FOR THE MEDIA CLASS AND THE CORRESPONDING MEDIA VEHICLE SELECTED FOR THE ADVERTISEMENT REASON FOR THE MEDIA CLASS The reason for targeting the youth through this advertisement is because that the youth of today is rearing to take on the world. They are smart, energetic, focused, and confident enough to transform their aspirations into reality. Coca Colas Thande ka Tadka campaign connects instantly with this evolved persona. REASONS FOR SELECTING THIS MEDIA VEHICLE

Desired

reach

among TA

Geographically

All

over

India.

Demographically All age group and income group people.

Psychological

processing

possibilities

through

vehicle

Attention,

Awareness, Acceptance, Retaining and Entertaining.


For Reproduction of the ad Time spent and Involvement with the Vehicle High Involvement with the Vehicles so therefore these media vehicles were selected.

For Recall factor Luxury and pride on the move.

ADVERTISING BUDGET 1. Overall Budget 4 to 5 crores


56

2. Allocation

Media Cost 3 to 4 Crores Production Cost 80 lacs

PRINT ADVERTISEMENT-THANDE KA TADKA

57

ANOTHER PRINT ADVERTISEMENT

58

CHAPTER-4 DATA ANALYSIS

DATA ANALYSIS
1. Out of the Coke or Pepsi Advertisements Which Companys Ad Campaigns do you like better?

Liking of Coke or Pepsi Advertisements

Pepsi 40% Coke 60%

It can be seen clearly from the above graph that out of the total 25 respondents, 60% of them like the advertisements of Coca cola i.e 15 out of 25 while the rest 40% i.e 10 out of 25 like the ad campaigns of Pepsi.

60

2. Have you seen the Coca colas THANDE KA TADKA (The one featuring Aamir khan as a Chinese visitor) television commercial?

Percentage of Respondents seen the advertisement

No 8%

Yes 92%

It can be seen from the above pie graph that out of the total of 25 respondents, majority of the respondents have seen the coca colas THANDE KA TADKA advertisement featuring Aamir Khan as a Japanese visitor. Only 85 i.e 2 respondents out of the 25 have not seen the Advertisement.

61

3. Do you think that this ad campaign is attractive enough to convert a Pepsi consumer to a Coke consumer?

Ad Campaign attractive to convert a Pepsi consumer to Coke consumer

No, 7, 30% Yes No Yes, 16, 70%

The above graph depicts that 70% of the total respondents feels that the THANDE KA TADKA ad campaign is attractive enough to convert a Pepsi consumer to a coke consumer while 7 out of 23(as 2 have not seen the advertisement) i.e. 30% does not find the add attractive enough to convert a Pepsi consumer to a coke consumer.

62

4. Rate the Creative content of this ad Campaign on the scale of 1 to 10 (10 being the most creative and 1 being the least creative)

Rating of the Creative content on the scale of 1-10


12 10
No of Respondents

10 8 8 6 6 4 4 2 2 0 1 2 3 4 5 Rank 6 7 8 1 0 1 0 0 3 2 2 5 5 7 7

Rank 4 2 No of respondents

10

When asked the respondents about the creative content of the THANDE KA TADKA advertisement, majority of the respondents i.e. 7 out of the total respondent have ranked the creative content as 6 on the scale of 1-10, 10 being the most creative and 1 being the least creative. 5 respondents have rate the creative content as 8, 4 of them have rated it 9 and 2 of them have rated it as 10 on such scale. One of the respondent has also rated it 2 on the scale. The above graph clearly shows that most of the respondents liked the creative content of the advertisement and has therefore rated its content on the higher side of the scale.

63

5. Aamirs acting and humour skills were able to make a long lasting impact on the consumers mind?

Aamir's acting able to make a long lasting impact on consumer mind

Disagree, 5, 22% Agree Disagree Agree, 18, 78%

The above graph clearly depicts that out of the total no of the respondents, 78% of them feels that Aamir Khans acting and humorous skills in the advertisement was able to make a long lasting impact on the consumers mind while 5 respondents i.e. 22% of them feels that he was not attractive enough to make a long lasting impact on the consumers mind.

64

6. How satisfied are you with the fact that this Ad Campaign will further enhance the impact of Coca Colas brand image for this summer?

Ad campaign will further enhance the impact of Coca cola's brand image for summer
12 10

11

No of respondents

8
8 6 4 No of respondents

2
2

2 0

0
Very Satisfied Quite Satisfied Neither Quite Very Satisfied Nor Dissatisfied Dissatisfied Dissatisfied

When respondents were asked about their satisfaction level regarding the fact that this Ad campaign will further enhance the impact of Coca colas brand image for this summer, 2 of the respondents were very satisfied with the fact, maximum no of respondents i.e. 11 of them were Quite satisfied, 8 of them were of the view that they are neither satisfied nor dissatisfied while 2 of them were quite dissatisfied with this fact. None of the respondent was found to be very dissatisfied with the fact.

65

7. Do you feel that Aamir Khan was able to deliver the message of the advertisement to the best?

Aamir khan was able to deliver the message of the Ad to the best

No, 5, 22%

Yes No
Yes, 18, 78%

The above graph clearly depicts that 78% of the respondents i.e. 18 out of the 23 respondents feels that Aamir Khan was able to deliver the message of the Advertisement to the best while 22% of them feels that he was not able to deliver the message of the advertisement to the best. According to them some othe Brand ambassador would have done this better. Apart from Aamir khan being the Brand Ambassador for this advertisement, the other brand ambassadors they suggested were Vivek Oberoi, Virendra Sehwag, Arshad Warsi, Sanjay Dutt, Saif Ali khan to name a few.

66

8. Do you believe that the claims made through this advertisement (Food tastes best when had with Coca Cola / Thande ke saath khana Changa) are realistic enough to be believed?

Claims made through the Ad are realistic enough to be believed

10 8 6 No of respondents 4 2 0 Series1 Yes 8 No 6 Partially 9

It is clearly seen from the above graph that 9 respondents out of the total of 23 (2 have not seen the advertisement) believe partially that the claims made through this advertisement (Food tastes best when had with Coca cola/ Thande ke saath khana changa) are realistic enough to be believed. 8 respondents believe that the claims are realistic while 6 out of the 23 respondents believe that the claims are unrealistic.

67

9. This ad campaign further emphasizes the synonymous relations between Coca Cola and Thanda?

Ad Campaign further emphasizes synonomous relations between Coca cola and Thanda

Disagree, 5, 22%

Agree Disagree
Agree, 18, 78%

This Ad campaign further emphasizes the synonymous relations between Coca cola and Thanda- 78% i.e. 18 out of 23 (2 of them has not seen the advertisement) agree with the fact while 22% of them disagree with the fact i.e 5 respondents out of the total.

68

10. How appealing is the tag Line THANDE KE SAATH KHANA CHANGA for this ad campaign? Rate on the scale of 1-5 (5 being very appealing and 1 being not being appealing)

Appeal of the tag line for the Ad


8 6 No of 4 respondents 2 0 Ratings No of respondent 1 1 1 3 2 2 3 3 3 6 4 4 7 5 5 4
6

5 4
3 3 4

When the respondents were asked how appealing they find the tag line THANDE KE SAATH KHANA CHANGA for this Ad campaign, most of the respondents (7 out of the total) have rated it 4 on the scale of 1-5, 5 being very appealing and 1 being not very appealing. 6 respondents have rated the appeal 3 on such scale, 3 of them have rated it 1 and 4 of the total of 23 respondents have rated it 5 on the scale of 1-5, 5 being very appealing and 1 being not very appealing.

69

11. Out of the two Campaigns of THANDE KA TADKA which one do you like better?

Liking of two Ad campigns- featuring Aamir Khan And Aishwarya Rai

Aishwarya Rai, 7, 30%

Aamir Khan Aishwarya Rai


Aamir Khan, 16, 70%

When people were asked as to out of the two advertisement Campaigns of THANDE KA TADKA which one they like better- the one featuring Aamir Khan or the one featuring Aishwarya rai, most of the respondents i.e. 70% of them liked the ad campaign done by Aamir khan while only 30% of the total respondents like the ad campaign featuring Aishwarya Rai better.

70

DEMOGRAPHICS OF THE RESPONDENT

12. SEX

percentage of respondents Male/Female

Female, 12, 48% Male, 13, 52%

Male Female

Out of the total of 25 respondents, 52% of the respondents i.e 13 out of 25 of them were male and the rest 48% respondents were female.

71

13. Age Group

Age group of Respondents

Above 40 Years Below 18 Years 4% 12% 18-25 Years 40% 25-45 Years 44%

Below 18 Years 18-25 Years 25-45 Years Above 40 Years

The respondents selected for this research were of varied age groups, most of them were in the age group of 25-45 years i.e. 11 out of the total of 25 were in this age group. 40% comprises of the respondents belonging to the age group of 18-25 years. 4% of them were below 18 years and the rest i.e 3 respondents (12% of the total) belong to age group of above 40 years.

72

14. Occupation of the respondent

Occupation of the Respondents

Business 20%

Others 8%

Student 36%

Student Service Business Others

Service 36%

The respondents selected were mainly of the service class and students. 36% of each of them taken. 20% of the respondents were businessmen. Others which comprises of 8% of the respondents, mainly includes housewives.

73

15. Which Media vehicle do you consult the most?

Media they Consult

All 22% Radio 11% TV 35%

News papers 27% magazines 5%

News papers magazines TV Radio All

The above graph clearly depicts the media the respondents mainly consult. Some of the respondents consult more than one media and some consult all the media options given to them. The most common media vehicle consulted by most of them were news papers and television.

74

16. Which income group do you belong to?

Income group of the Respondents

Not Applicable 40% 48% Below 5,000 5,000-10,000 10,000-20,000 12% 0% Above 20,000

Regarding the income group of the respondent, most of them (48% of the total respondents i.e. 25) lies in the income group of above 20,000. 40% of the respondents does not earn anything. None of the respondents were in the income group of 5,00010,000 and 12% of them belong to the income group of 10,000- 20,000.

75

CHAPTER-5 FINDINGS & RECOMMENDATIONS

FINDINGS & RECOMMENDATIONS


FINDINGS

Mostly soft drink consumers like the Ad Campaigns of Coca cola better than Pepsi.

Most of the people feels that this ad campaign is attractive enough to convert a Pepsi consumer to a Coke consumer

Aamir Khan was able to deliver the message of the advertisement to the best Out of the two Campaigns of THANDE KA TADKA, the ad featuring Aamir khan is liked more than the one featuring Aishwarya Rai

The tag Line THANDE KE SAATH KHANA CHANGA is appropriate for the advertisement.

This ad campaign further emphasizes the synonymous relations between Coca Cola and Thanda

The claims made through this advertisement (Food tastes best when had with Coca Cola / Thande ke saath khana Changa) are realistic enough to be believed

77

RECOMMENDATIONS
Need for diversification it is important that Coke innovates constantly in its appeal & packaging The reason being a certain section of the market finds the original Coke little strong, so if a version of Coke is brought out which is a little sweet it may catch on to the market. Lastly it is important that the retailers price of Coke be controlled to a stable level. It has been often seen that retailers charge a higher price than what is the MRP of the product, if this can be controlled it is bound to increase the usage of the product.

Increase of percapita usage in the market would inurn increase the rate of revenue generated.

78

ANNEXURES

QUESTIONNAIRE
I would request you to kindly assist us in this Research by sparing a little time to give us your valuable feedback and suggestions through the Questionnaire below. Please do not hesitate to inform us of any observation that you think may be relevant. 1. Out of the Coke or Pepsi Advertisements Which Companys Ad Campaigns do you like better?

Coke Pepsi 2. Have you seen the Coca colas THANDE KA TADKA (The one featuring Aamir khan as a Chinese visitor) television commercial?

Yes No

3. Do you think that this ad campaign is attractive enough to convert a Pepsi consumer to a Coke consumer?

Yes No

4. Rate the Creative content of this ad Campaign on the scale of 1 to 10 (10 being the most creative and 1 being the least creative)

5. Aamirs acting and humour skills were able to make a long lasting impact on the consumers mind?

Agree Disagree

6. How satisfied are you with the fact that this Ad Campaign will further enhance the impact of Coca Colas brand image for this summer?

Very satisfied Quite satisfied Neither satisfied nor dissatisfied Quite dissatisfied Very dissatisfied

7. Do you feel that Aamir Khan was able to deliver the message of the advertisement to the best?

Yes No

If NO, please suggest a Brand Ambassador which you feel would have been the best suited for this advertisement.

8. Do you believe that the claims made through this advertisement (Food tastes best when had with Coca Cola / Thande ke saath khana Changa) are realistic enough to be believed?

Yes No Partially

9. This ad campaign further emphasizes the synonymous relations between Coca Cola and Thanda?

Agree Disagree f 10. How appealing is the tag Line THANDE KE SAATH KHANA CHANGA for this ad campaign? Rate on the scale of 1-5 (5 being very appealing and 1 being not being appealing)

11. Out of the two Campaigns of THANDE KA TADKA which one do you like better?

The one featuring Aamir Khan The one featuring Aishwarya Rai?

DEMOGRAPHICS

12.Sex Male Female

13. Age group

Below 18 Years 18-25 Years 25-45 years Above 45 Years

14. Your occupation Student Service Business Other (Specify_________)

15. Which media/vehicles do you consult the most?

Daily news papers Magazines TV Channels Radio channels All the Above

16. Which income group do you belong to?

Amount (RS) Monthly Not Applicable Below 5000 5000-10,000 10,000-20,000 Above 20,000

BIBLIOGRAPHY

Books Brand Power Consumer Behaviour and Marketing Strategies Marketing Concept Philip Kotter and Gary Armstrong Paul Stobart J. Paul Peter

Magazines & Newspapers Business Today Business World Economic Times Business Barons
Websites

2004 2004 2004 2005

www.cocacola.com www.financialexpress.com
www.businesstoday.com

www.searchalot.com

You might also like