Professional Documents
Culture Documents
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PROJECT REPORT ON
COCA-COLA COMPANY
SUBMITTED BY:
SUBMITTED TO:
DR.
KARTIK DAVE
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CONTENTS
EXECUTIVE SUMMARY
- PAGE 2
CHAPTER 1
- PAGE 4-6
INTRODUCTION
CHAPTER 2
- PAGE 7-11
INDUSTRY PROFILE
CHAPTER 3
- PAGE 12-63
COMPANY PROFILE
COCA-COLA COMPANY
- PAGE 13-17
GLOBAL MARKET SHARE OF COCA-COLA
- PAGE 17-18
TRENDS AND FORCES
- PAGE 19-22
POTERS FIVE FORCES
- PAGE 22-29
PESTLE ANALYSIS
- PAGE 29-33
SWOT ANALYSIS
- PAGE 33-40
COCA-COLA INDIA
- PAGE 41-42
PRODUCTS IN INDIA
- PAGE 42-46
MARKETING MIX
- PAGE 49-58
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PESTLE ANALYSIS
- PAGE 58-62
SWOT ANALYSIS
- PAGE 60-62
CHAPTER 4
- PAGE 63-68
RESEARCH METHODOLOGY
CHAPTER 5
- PAGE 69-79
DATA ANALYSIS
CHAPTER 6
- PAGE 80-82
BIBLIOGRAPHY
- PAGE 83
ANNEXURE
- PAGE 84-85
EXECUTIVE
SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the
history and current scenario of the Coca-Cola Company globally and locally.
The first part of the study takes us through the present state of affairs of the
beverage industry and Coca-Cola Company globally.
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The report contains a brief introduction of Coca Cola Company and Coca-Cola
India and a detailed view of the tasks, which have been undertaken to analyze
the market of Coca-Cola i.e. we have performed Competitive, PESTLE and
SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of
Coca-Cola India in order to identify areas of potential growth for Coca-Cola.
We have also given a brief description of Trends and Forces that are affecting
Coca-Cola Company globally.
The main objective of this project report is to analyze and study in efficient way
the current position of Coca- Cola Company. The study also aims to perform
Market Analysis of Coca-Cola Company & find out different factors effecting
the growth of Coca-Cola. Another objective of the study was to perform
Competitive analysis between Coca-Cola and its competitors. Apart from these
objectives this study is also conducted to understand the Customer preferences
towards various Coca-Cola products.
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1.
INTRODUCTION
INTRODUCTON
Let reason go before every enterprise,
And counsel before every action
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MARKETING RESEARCH:Marketing research is the function that links the consumer, customer and public
to the marketer through information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements
the data collection process, analyzes and communicates the findings and their
implications.
-American Marketing Association
Marketing research is about researching the whole companys marketing
process.
-Palmer (2000)
INTRODUCTION TO COCA-COLA
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer
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The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the
Company. This unique worldwide system has made The Coca-Cola Company the worlds
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, has brought pleasure to thirsty consumers around the
globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for
hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers through a
worldwide system of superior brands and services, thus increasing brand equity on a global
basis. They aim at managing their business well with people who are strongly committed to
the Company values and culture and providing an appropriately controlled environment, to
meet business goals and objectives. The associates of this Company jointly take
responsibility to ensure compliance with the framework of policies and protect the
Companys assets and resources whilst limiting business risks.
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2.
INDUSTRY PROFILE
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INDUSTRY PROFILE
The Indian FMCG industry witnessed significant changes through the 1990s. Many players
had been facing severe problems on account of increased competition from small and
regional players and from slow growth across its various product categories. As a result, most
of the companies were forced to revamp their product, marketing, distribution and customer
service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian customer
witnessed an increasing exposure to new domestic and foreign products through different
media, such as television and the Internet. Apart from this, social changes such as increase in
the number of nuclear families and the growing number of working couples resulting in
increased spending power also contributed to the increase in the Indian consumers' personal
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HLL led the way in revolutionizing the product, market, distribution and service formats of
the FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in
the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will
not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is
the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs. (Source: HCCBPL, Monthly Circular)
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BEVERAGE
S
NONALCOHOLIC
ALCOHOLIC
NONCARBONAT
ED
CARBONAT
ED
COLA
NON-COLA
NON-COLA
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If the behavioural patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:
The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or
prestige relevant to the category.
Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread
of distribution. It is important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up to the overall growth of the
food and beverage industry in the economy.
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3.
COMPANY PROFILE
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COMPANY PROFILE
MISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.
VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
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Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
WINNING CULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality.
WORK SMART:
Act with urgency.
Remain responsive to change.
Have the courage to change course when needed.
Remain constructively discontent.
Work efficiently.
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HISTORY OF COCA-COLA
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a
drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin
Mariani, a European cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine
Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was
initially sold as a patent medicine for five cents a glass at soda fountains, which were popular
in the United States at the time due to the belief that carbonated water was good for the
health.[9] Pemberton claimed Coca-Cola cured many diseases, including morphine addiction,
dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for
the beverage on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola sold by three separate businesses were on the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an
ongoing addiction to morphine, Pemberton sold the rights a second time to four more
businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile,
Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his
beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out
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On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the
drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the
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According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market
share has increased to 30.8%, while the Coca-Cola Company's has decreased to 42.7% due to
Pepsi marketing schemes still the higher large gap between the market share can be attributed
to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its
bottler's and distribution network especially in developed markets.
"The Coca-Cola Company" is the largest soft drink company in the world. Every year
800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plants
with some exceptions are locally owned and operated by independent business people who
are native to the nations in which they are located. Coca-Cola manufactures, distributes and
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Pepsi is however trying to counter this by competing more aggressively in the emerging
economies where the dominance of Coke is not as pronounced, with the growth in emerging
markets significantly expected to exceed the developed markets, rivalry in international
market is going to be more pronounced.
Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting
Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing
people doing blind taste tests called Pepsi Challenge in which they preferred one product over
the other. Pepsi started hiring more popular spokespersons to promote their products.
In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars,
Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on
billions of packages and cups. They could redeem the points for free Pepsi lifestyle
merchandise. After researching and testing the program for over two years to ensure that it
resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success.
Tens of millions consumers participated. Pepsi outperformed Coke during the summer of the
Atlanta Olympics, held at Coke's hometown where Coke was the lead sponsor for the Games.
Due to its success, the program was expanded to include Mountain Dew into Pepsi's
international markets worldwide. The company continued to run the program for many years,
continually innovating with new features each year.
Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005
& Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi
Stuff ending its services and Coke Rewards still offering prizes on their website. Both were
loyalty programs that give away prizes and product to consumers after collecting bottle caps
and 12 or 24 pack box tops, then submitting codes online for a certain number of points.
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POTENTIAL ENTRANTS:
New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and
Pepsi Co dominate the industry with their strong brand name and great distribution channels.
In addition, the soft-drink industry is fully saturated and growth is small. This makes it very
difficult for new, unknown entrants to start competing against the existing firms.
Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and
economies of scale. New entrants cannot compete in price without economies of scale. These
high capital requirements and market saturation make it extremely difficult for companies to
enter the soft drink industry therefore new entrants are not a strong competitive force.
Capital requirements for producing, promoting, and establishing a new soft drink
traditionally have been viewed as extremely high. According to industry experts, this makes
the likelihood of potential entry by new players quite low, except perhaps in much localized
situations that matter little to Coke or Pepsi. Yet, while this view may reflect conventional
wisdom, some industry observers question whether a new time is coming, with 'new age'
beverages selling to well-informed and health-informed and health-conscious consumers.
This issue was beginning to grab the attention of both Coke and Pepsi in the summer of
1992, when they both were not able to explain a drop in their June 1992 sales.
SUBSTITUTES:
Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit
juices are the more popular substitutes. Availability of shelf space in retail stores as well as
advertising and promotion traditionally has had a significant effect on beverage purchasing
behaviour. Overall total liquid consumption in the United States in 1991 included Coca-
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Political Analysis:
Political factors are how far a government intervenes in the operations of the company. The
political factors may include tax policy, trade restrictions, environmental policy, laws
imposed on the recruiting labours, amount of permitted goods by the government and the
service provided by the government.
Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and
Drug Administration), it is an agency in the United States Department of Health and Human
Services. Its headquarters is in USA and it has started opening offices in foreign countries as
well. The job of the FDA is to check and certify whether the ingredients used in the
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Economic Factors:
The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates,
wage rates and unemployment in the country.
The company first analyzes the economic condition of the country before venturing into that
country. When there is an economic growth in the country, the purchasing power among
people increases. It gives the company or the marketer a good chance to market the product.
Coca-Cola, in the past identified this correctly and rightly started its distribution across
various countries. The net operating profits for the company outside US stands at around
72%. Along with this the company uses 63 various types of currencies other than US Dollar.
Hence there is a definite impact in the revenues due to the fluctuating foreign currency
exchange rates. A strong and weak currency tends to affect the exporting of the products
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Social Factors:
Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing society. The company
adapts various management strategies to adapt to these social trends.
Coca-Cola which is a B2C company, is directly related to the customer, so social changes are
the most important factors to consider. Each and every country has a unique culture and
attitude among the people. It is very important to know about the culture before marketing in
a particular country. Coca-Cola has about 3300+ products in their stable, when entering into a
country it does not introduce all the products. It introduces minimum number of products
according to the culture of the country and the attitude of the people.
Consumers and government are becoming increasingly aware of the public health
consequences, mainly obesity which is the second social factor in the soft drinks industry. It
inspired the company to venture into the areas of Diet coke and zero calorie soft drinks. The
problem of obesity is taken seriously among the youngsters who like to maintain a good
physique. Hence coke introduced dietary products for those youngsters who can enjoy coke
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Technological Factors:
Technology plays a varied role in the soft drinks industry. The manufacturing and distribution
of the products is relatively a Low-Tech business, although the creation of a new product with
the perfect blend and taste is a science (an art in itself).
Technological contributions are most important in packaging. The company rely on their
bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit
case volume is manufactured and distributed by their bottling partners in whom the company
does not have controlling power. Hence it is necessary for the company to maintain a cordial
relation with their bottling partners. If the company do not give ample support in pricing,
marketing and advertising then the bottling industry while increase their short term profits,
may become detrimental to the company.
The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines all over the world. In
products it led to the development of new products like Cherry Coke, Diet Coke etc. The
technical advancement in the bottling industries include, introduction of recyclable and non
refillable bottles, introduction of cans which are trendy, stylish and popular among the
youngsters.
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Legal Factors
The legal factors include discrimination law, customer law, antitrust law, employment law
and health and safety law. In Coca-Cola the business is subjected to various laws and
regulation in the numerous countries in which they do the business, the laws include
competition, product safety, advertising and labelling, container deposits, environment
protection, labour practices.
In the US the products of the company is subjected to various acts like Federal Food, Drug
and Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act,
various environment related acts and regulations, the production, distribution, sale and
advertising of all the products are subjected to various laws and regulations. Changes in these
laws could result in increased costs and capital expenditures, which affects the company
profitability and also the production and distribution of the products.
Various jurisdictions may adopt significant regulations in the additional product labelling and
warning of certain chemical content or perceived health consequences. These requirements if
become applicable in the future the company must be ready to accept and have necessary
changes in hand for the same.
Environment Factors
These factors include the environment such as the weather conditions and the seasons in
which people prefer to buy cool beverages. Also the company must follow the environmental
issues related to the product manufacturing, packaging and distributing in various countries.
It must adhere to the norms and market the product accordingly. Usage of renewable plastic
in the PET bottles is followed by the company strictly.
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WEAKNESS
STRENGTHES
Negative Publicity.
World's leading brand.
Decline in cash from
Large scale of
Operating
Activities.
operations.
Robust revenue growth
SWOTSluggish Performance
America.
THREATS
in 3 segments. ANALYS in North
OPPORTUNITIES
IS Intense Competition.
Acquisitions.
Dependence on bottling
Growing bottled water
Patners.
market.
Sluggish growth of
Growing Hispanic
Carbonated beverages.
Population in U.S.
.
Fig 2.1 SWOT ANALYSIS OF COCA-COLA
STRENGTHES:
WORLDS LEADING BRAND
Coca-Cola has strong brand recognition across the globe. The company has a leading brand
value and a strong brand portfolio. Business-Week and Inter-brand, a branding consultancy,
recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in
2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. CocaCola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand
value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product brands.
The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke,
Sprite and Fanta.
Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry
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Coke and Coke with Lemon. Over the years, the company has made large investments in
brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The
companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate
new markets and consolidate existing ones.
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WEAKNESS:
NEGATIVE PUBLICITY
The Coca-Cola Company has been involved in a number of controversies and lawsuits related
to its relationship with human rights violations and other perceived unethical practices. There
have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle
East and U.S. foreign policy. The company received negative publicity in India during
September 2006.The company was accused by the Centre for Science and Environment
(CSE) of selling products containing pesticide residues. Coca-Cola products sold in and
around the Indian national capital region contained a hazardous pesticide residue.
On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr. Muhtar
Kent, President and Chief Executive Officer, to warn him that the FDA had concluded that
Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food, Drug,
and Cosmetic Act.
In January 2009, the US consumer group the Centre for Science in the Public Interest filed a
class-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along
with the company's flavours, of Vitamin Water. Claims say that the 33 grams of sugar are
more harmful than the vitamins and other additives are helpful.
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In North America the sale of unit cases did not record any growth. Unit case retail volume in
North America decreased 1% primarily due to weak sparkling beverage trends in the second
half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover,
the company also expects performance in North America to be weak during 2007. Sluggish
performance in North America could impact the companys future growth prospects and
prevent Coca-Cola from recording a more robust top-line growth.
OPPORTUNITIES:
ACQUISITIONS
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could leverage its strong position in the bottled water segment to take advantage of growing
demand for flavoured water.
THREATS:
INTENSE COMPETITION
Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages
industry. The company faces intense competition in various markets from regional as well as
global players. Also, the company faces competition from various non-alcoholic sparkling
beverages including juices and nectars and fruit drinks. In many of the countries in which
Coca-Cola operates, including the US, PepsiCo is one of the companys primary competitors.
Other significant competitors include Nestle, Cadbury Schweppes, Groupe DANONE and
Kraft Foods.
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Competitive factors impacting the companys business include pricing, advertising, sales
promotion programs, product innovation, and brand and trademark development and
protection. Intense competition could impact Coca-Colas market share and revenue growth
rates.
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total revenues of $63.9 billion in 2005, this representing a compound annual growth rate
(CAGR) of only 0.2% for the five-year period spanning 2001-2005. The performance of the
market is forecast to decelerate, with an anticipated compound annual rate of change (CAGR)
of -0.3% for the five-year period 2005-2010 expected to drive the market to a value of $62.9
billion by the end of 2010.
Moreover in the recent years, beverage companies such as Coca-Cola have been criticized for
selling carbonated beverages with high amounts of sugar and unacceptable levels of
dangerous chemical content, and have been implicated for facilitating poor diet and
increasing childhood obesity. Moreover, the US is the companys core market. Coca-Cola
already expects its performance in the region to be sluggish during 2007. Coca-Colas
revenues could be adversely affected by a slowdown in the US carbonated beverage market.
Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to
close down its operation by a socialist government in the drive for self sufficiency. After 16
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Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products.
In various regions they tried portraying coca cola products with different regional food
products. One of the most famous ad campaigns in India was Thanda Matlab Coca-Cola;
they featured the same quote with different regional entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged
water Segment, compared to its arch rival, Pepsi. Diversifying their product range and having
a competitive pricing policy, they have regained their throne. With virtually all the goods and
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COCA-COLA:In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated
its departure. 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 remote
and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India Cricket, movies, music & food. Coca-Colas advertising campaigns Jo Chaho Ho
Jaye & Life Ho Toh Aise were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign Thanda Matlab Coca-Cola which sky
rocketed the brand to make it Indias favourite soft drink brand.
PET
CAN
FOUNTAIN
200ml, 300ml,
330 ml
VARIOUS SIZES
500ml, 1000ml
GLASS
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Table - 1.0
LIMCA:Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
lemoni bite combined with the single minded proposition of the brand as the provider of
Freshness.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu +
Jaise hence Lime Sa, Limca has lived up to its promises of refreshment and has been the
original thirst choice of millions of customers for over 3 decades.
PET
CAN
FOUNTAIN
200ml, 300ml,
330 ml
VARIOUS SIZES
500ml, 1000ml
GLASS
Table - 1.1
THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up
is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.
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This brand clearly seeks to separate the men from the boys.
PET
CAN
FOUNTAIN
200ml, 300ml,
330 ml
VARIOUS SIZES
500ml, 1000ml
GLASS
Table - 1.2
SPRITE:Sprite a global leader in the lemon lime category is the second largest sparkling beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a
true teen icon.
RGB
PET
CAN
FOUNTAIN
200ml, 300ml
500ml, 600ml,
330 ml
VARIOUS SIZES
1250ml, 1500ml,
2000ml, 2250ml
Table 1.3
FANTA:-
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Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as The Fun Catalyst. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, 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.
GLASS
200ml, 300ml
PET
CAN
FOUNTAIN
330 ml
VARIOUS SIZES
MINUTE MAID PULPY ORANGE:The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that
eliminated 80% of the water in the orange juice, forming a frozen concentrate that when
reconstitute created orange juice. They branded it Minute Maid a name connoting the
convenience and the ease of preparation. Minute Maid thus moved from a powdered
concentrate to the first ever orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.
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MAAZA:Maaza was introduced in late 1970s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lovers first choice.
PET
RGB
200ml, 250ml
POCKET MAAZA
200ml
Table 1.5
KINLEY:The importance of water can never be understated, Particularly in a nation such as India
where water governs the lives of the millions, be it as a part of everyday ritual or as the
monsoon which gives life to the sub continent. Kinley water comes with the assurance of
safety from the Coca-Cola Company.
Available in PET 500ml and 1000ml.
GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is
available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major
metros in India.
HOT BEVERAGES
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COLD BEVERAGES
PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like
India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond
the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in
coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30%
demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5
was rolled out countrywide in January 2003. The advertising Campaign highlighted the
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PLACE:Coke pushed down responsibilities from corporate headquarters to the local business units.
The aim was to effectively align CCI's corporate resources, support systems and culture to
leverage the local capabilities. CCI's operations had been divided into North, Central and
Southern regions. Each region had a president at the top, with divisions comprising
marketing, finance, human resources and bottling operations. The heads of the divisions
reported to the CEO. Bottling operations were divided into four companies directed by the
bottling head from headquarters. Under the new plan, CCI shifted to a six region profit center
set up where product customization and packaging, marketing and brand building were taken
up locally. A Regional General Manager (RGM) headed each region with the regional
functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn
reported to CEO. The four bottling operations, with 37 bottling plants, were merged into
Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average six
bottling plants. Each plant was headed by an Area General Manager (AGM) and held profit
center responsibility for a business territory. He reported to the RGM as well as the head of
bottling at the head quarters.
PROMOTION:In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible.
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Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen
by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well
known personalities popular to this age group. During 90'ies Coke's promotion efforts did not
seem to be effective. They were focused on mega events like the 1996 Cricket World Cup
held in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing
official about it" campaign. Major analysts were surprised that Thumps Up was totally out of
the picture during such a mega event. In 1998 localization of marketing efforts, CCI signed
up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke
also began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was
declared the fastest growing market within the Coca-Cola system. But things were far from
normal. Attempts at building growth through discounts and PET take home segment were not
very successful because of lack of coordination between the launches and marketing back-up.
To maintain good relationships with bottlers and avoid defections to the other camp, dealers
had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments
in India, amounting to $400 Mn. The revised value of CCI's assets after the charge was $300
mn.
CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had
become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a
juice brand and saw a growth of almost 30% in 2001. Since India was a large country of
different tastes and cultures, CCI customized its marketing strategy for different regions. It
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Political Factors:
Historical
Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than
revealing its formula to the government. They re-entered the country in 1993. However, the
primary barrier for Coca-Colas entry into the Indian market was its political environment.
Despite the liberalization of the Indian economy in 1991 and introduction of the New
Industrial Policy to eliminate barriers such as bureaucracy and regulation, there was still a lot
of protectionism. Indias past promotion of Indigenous availability or Swadeshi
movement depicted its affinity for local products. Due to Indias suspicion of foreign
business entering Indian markets, Coca Cola received alien status its re-entry. This and some
of the policies imposed on foreign enterprises proved as a hindrance to the growth of the
company in the country. To make things worse, the policies were neither clear nor
unchanging.
For example, foreign businesses were not allowed to market their products under the same
name if selling within the Indian market. Thus, Coca Cola had to be changed to Coca Cola
India (and Pepsi had to be renamed to Lehar Pepsi). However, the most controversial, and by
far, the most damaging was when Coca-Cola was forced to sign an agreement to sell 49% of
its equity in order to buy out Indian bottlers. Due to the lack of consistency in the legal
aspects, more importance was being given to lobbying the politicians.
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Recent Scenario
During recent times, Coca Cola India has faced its fair share of problems. On August 5 th
2003, The Centre for Science and Environment (CSE), an activist group in India focused on
environmental sustainability issues (specifically the effects of industrialization and economic
growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi
contain a deadly cocktail of pesticide residues". According to tests conducted by the Pollution
Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve
PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues
surpassing global standards by 30-36 times.
This had an adverse impact on the sales of Coca Cola, with a drop of almost 30-40%1 in only
two weeks on the heels of a 75% five-year growth trajectory. Many leading clubs, retailers,
restaurants, and college campuses across the country had stopped selling Coca-Cola. This
threatened the newly achieved leadership attained over Pepsi due to a successful marketing
campaign.
But this was not the end of Coca Colas troubles. There was widespread discontent around
many of their plants. For example, in Plachimada, Kerala, the communities in and around the
Coca Cola plant blamed the factory for their water problems. Due to this, the local Panchayat
decided not to renew the license issued to Coca Cola to protect public interest". The
company has also been accused of illegally occupying a portion of the village property
resources in Mehdiganj, near Varanasi. However, there are certain positives as well, with a 22
percent increase in its unit case volume last quarter.
Economic Analysis:
The Indian economy sustained the global economic slowdown in the previous year and has
shown a tremendous economic growth. It showed 8.6% of growth in the last quarter of 200910 as compared to 5.8% same time in the previous year. It has emerged as an attractive
economy to invest in as many opportunities has been recognized.
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Economic growth
India is ranked second in economic growth, just behind China. Analysts have said that India
will be the third biggest economy of the world in the coming year behind China and USA.
With economic growth many opportunities have been seen, which have attracted many
foreign investor to the company.
Coca cola India returned to the country in 1993, despite few problems in the start they have
emerged as the king of soft drink industry in India. The strong economic growth of India has
resulted in coca cola to invest heavily in sales and distributive channels. It has introduced two
new products, Nimbu Fresh and an energy drink Burn.
Coca cola registered 22% growth in their unit case volume in the second quarter (April-June).
It is the 16th consecutive quarter of such growth out of which 13 are double digit. Coca cola
Indias growth is in contrast to its overall performance, the beverage king reported a growth
of just 5% (worldwide) in the same quarter.
Inflationary effects
Inflation is one of the main problems that Indian economy has been facing for a year now.
Rising prices in the food and other products doesnt only effect the consumers it also has an
adverse effect on a company. The inflation rate for the year 2009 was recorded to be 11.49%.
As prices have gone up in India for various products, especially oil, there has been
uncertainty in decision making of almost every company. Coca cola India has also been
affected by the same; it has been forced to think about their input costs, as they have been
rising due to inflation. Their expenditure has been rising, with more costs in salaries,
distribution channels and other operating costs. Beverage industry being price competitive
market, they have not revised their product prices.
Exchange rate
The exchange rate of rupee to US Dollar has been stable but in the previous months the rate
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Social Analysis:
Coca- Cola returned to India in 1993 after a 16 year hiatus, amidst competition from Leher
Pepsi which had the advantage of entering the country 7 years earlier. Initially, it struggled to
find acceptance as there were already other brands such as Parles Thums Up which existed in
the market. Coca-Cola had earlier focussed more on the American way of life in their
advertising campaigns, which the Indian consumers could not identify with. Also, they did
not focus on competition from other alternatives such as lemonade, Lassi etc.
These products had been around for centuries, and were also cheaper alternatives to CocaCola. However, things were brought under control when Thums Up was bought over by Coca
Cola, and more attention was paid by the company on their marketing mix.
With the lowering of their prices by almost 15-20%, introduction of newer products which
appealed to the Indian tastes, more investment in market research and focussing on the target
group of 18-24 year olds, they were able to increase their market share and build brand
loyalty.
Coca Cola today, has made significant investments to build its business in India. It has also
generated employment for almost 1,25,000 people in related industry through its
procurement, supply and distribution cycles.
The soft drink industry today is growing steadily due to the booming economy, strengthened
middle class and low per capita consumption. With the increase in health consciousness
among the urban consumers, the company has introduced newer products such as Diet Coke,
which contain lesser calories than ordinary Coca Cola. This is also responsible for the
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Technological Analysis:
Coca-Cola has started operations of its R&D facility in India, with the view of localizing its
product portfolio. The major focus would be on non carbonated drinks and flavours. The
companys R&D team has already rolled out drinks such as Maaza aam panna and also a
Maaza mango milk drink, and is exploring options to enter new categories in India such as
juices in localised flavours, energy drinks, sports drinks and flavoured water. These initiatives
are being taken by the company to further expand their product portfolio.
With the increasing importance of 360 degree media tools and overall ad spend on social
media sets likely to grow by almost 44%, Coca-Cola has increased ad spend on the internet.
Case in point is the recent 2009 Sprite campaign, which was first launched on the internet.
Environmental Analysis:
Coca Cola has earned a title of environment friendly company and Coca Cola India too has
followed in the footsteps. Coca Cola Indias Corporate Social Responsibility (CSR), is an
initiative that prioritizes many social and environmental issues; one of them being water
conservation. They support many community based rainwater harvesting projects and help
lending conservation education.
The company has made sure that the following ideas are considered during their operations:
1. Environmental due diligence before acquiring land
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Legal Analysis:
As the Indian consumer is getting more educated, the government is also paying special
attention to consumer laws. In the past, there were not so many laws protecting the benefits to
the consumer but now every business has to go by the law and fix their operations, strategies
so as to satisfy their consumers, and employees. Keeping in mind the consumer laws,
employment laws, antitrust law, discrimination laws etc. a business should plan out
everything.
Consumer Laws
In the present scenario, consumer is the king, if a product is defective, not meeting the stated
standards a consumer can complain against the manufacturer. Complaining and getting the
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The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967.
From now on, the act establishes a regulatory body, the Food Safety and Standards Authority
of India. Anything that coca cola makes, have to make accordingly to the laws. They have to
check the weight, volume and ingredients of the product. The export or the import of the
products by the company has to meet the quality standards stipulated by the law.
Anti-trust law
The Competition Commission of India was made under the Indian Competition Act 2002,
Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. This committee
looks after all the issues regarding unethical means of doing business, competition issues and
any dispute between two different business entities. CLG competition and anti trust practices
are as follows:
Legal Advice and sophisticated insight into the international best practices on
competition law.
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WEAKNESSES
STRENGTHES
Distribution Network.
Strong Brand Image.
Low Cost of Operation.
OPPORTUNITIES
Large Domestic
Markets.
Export Potential.
High Income among
People.
SWOT
ANALYSIS
THREATS
Imports.
Tax & Regulatory Sector.
Slowdown in Rural
Demand.
STRENGTHES:
DISTRIBUTION NETWORK
The Company has a strong and reliable distribution network. The network is formed on the
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People.
Planet.
Portfolio.
Partners.
Performance.
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WEAKNESSES:
HEALTH CARE ISSUES
In India, there exists a major controversy concerning pesticides and other harmful chemicals
in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment
(CSE), a non- governmental organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola,
contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can
contribute to cancer and a breakdown of the immune system.
OPPORTUNITIES:
LARGE DOMESTIC MARKETS
The domestic market for the products of the Company is very high as compared to any other
soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market;
this includes a 42 per cent share of the cola market.
Other products account for 16 per cent market share, chiefly led by Limca. The company
appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover
one lakh outlets for the coming summer season and this also covered 3,500 new villages. In
Bangalore, Coca-Cola amounts for 74% of the beverage market.
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EXPORT POTENTIAL
The Company can come up with new products which are not manufactured abroad, like
Maaza etc and export them to foreign nations. It can come up with strategies to eliminate
apprehension from the minds of the people towards the Coke products produced in India so
that there will be a considerable amount of exports and it is yet another opportunity to
broaden future prospects and cater to the global markets rather than just domestic market.
HIGHER INCOME AMONG PEOPLE
Development of India as a whole has lead to an increase in the per capita income thereby
causing an increase in disposable income. Unlike olden times, people now have the power of
buying goods of their choice without having to worry much about the flow of their income.
Coca-Cola Company can take advantage of such a situation and enhance their sales.
THREATS:
IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years and a
majority of the people are educated, the export levels have gone high. People understand
trade to a large extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages manufactured within
the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting
the sales of the Company.
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4.
RESEARCH
METHODOLOGY
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The main objective of the project is to analyze and study in efficient way the current
position of Coca- Cola Company.
To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally.
This would help us identify areas of potential growth.
The study was aimed to perform Market Analysis of Coca-Cola Company & find out
different factors effecting the growth of Coca-Cola.
Another objective of the study was to perform Competitive analysis between CocaCola and its competitors.
To understand the reasons behind the purchase of Coca-Cola products.
SCOPE OF THE STUDY:This study basically tries to discover the current position of Coca-cola in the market. It
also tries to discover the preferences of the customers when posed with a choice between
Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in
New Delhi, Noida and Greater Noida
RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:
Exploratory Research.
Descriptive Research.
Casual Research.
1. Exploratory Research:-
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2. Descriptive Research:The objective of descriptive research is to describe things, such as the market potential for
a product or the demographics and attitudes of consumers who buy the product.
3. Casual Research:The objective of casual research is to test hypothesis about casual and effect relationships.
Based on the above definitions it can be established that this study is a Descriptive Research
as the attitudes of the customers who buy the products have been stated. Through this study
we are trying to analyze the various factors that may be responsible for the preference of
Coca-Cola products.
SOURCES OF DATA
The data has been collected from both primary as well as secondary sources.
SECONDARY DATA:It is defined as the data collected earlier for a purpose other than one currently being pursued.
As a researcher I have scanned lot of sources to get an access to secondary data which have
formed a reference base to compare the research findings. Secondary data in this study has
provided an insight and forms an outline for the core objectives established.
The various sources of secondary data used for this study are:-
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News papers.
Magazines.
Text books.
Marketing reports of the company.
Internet.
PRIMARY DATA:The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in
this study.
The methods that have been used to collect the primary data are: Questionnaire.
Personal Interview.
Questionnaire.
Personal interview.
Tables.
Percentages.
Pie-charts.
Bar-charts.
Column charts.
SAMPLING DESIGN
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SAMPLE SIZE:i.
ii.
SAMPLING TOOL:Questionnaire was used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.
Sampling Tools
Respondents
Number
Questionnaire
Customers
150
Personal Interview
Customers
27
Total
177
Table 1.7
FIELD WORK:The study was conducted in New Delhi, Noida and Greater Noida.
The questionnaires were given to the respondents to fill in order to get their feedback.
Questions were read out to the respondents and the answers were noted.
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LIMITATIONS OF THE STUDY:The main purpose of this study is get idea about the preference of the customers towards
various Coca-Cola products. But there are certain factors which affects this study they are as
follow:
Since the sampling procedure was judgmental, the sample selected may not be true
representative of the population.
Economic and market conditions are very unpredictable (Present and future).
The project duration is limited to 4 weeks so it limits the area of study.
The study was confined to New Delhi, Noida and Greater Noida due to which the
result cannot be applied universally.
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5.
DATA ANALYSIS
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Fig 2.4
Male
63%
Female
Fig 2.5
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Fig 2.6
50-100
4%3%
100-150
150-200
81%
Above 200
Fig 2.7
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Fig 2.8
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Parties
Cinemas
Picnics
Festivals
0
20
40
60
80
100
120
Number of respondents
Fig 2.9
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20
10
0
Fig 2.10
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20
40
60
80
100
120
NO. OF RESPONDENTS
Fig 2.11
Fruit drinks
20%
Energy drinks
Alcoholic drinks
14%
27%
40%
Fig 2.12
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Quantity preference
90
80
70
60
50
40
30
Number of responses
20
10
0
Fig 2.13
QUANTITY PREFERENCE:
From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET bottle of
Coca-Cola Products. About 27% prefer to purchase glass bottles, 19% prefer Can of 300ml
and only 8% prefer 1 & 2 litre bottles of Coca-Cola.
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Branding
Pepsi products
Coca-Cola products
20
40
60
80
100
120
NO. OF RESPONDENTS
Fig 2.14
Pricing
120
100
80
60
40
20
0
Coca-Cola products
Pepsi products
Fig 2.15
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Quality
140
120
100
80
60
40
20
0
Coca-Cola products
Pepsi products
Fig 2.16
TASTE
Pepsi products
Coca-Cola products
0
20
40
60
80
100
120
140
NO. OF RESPONDENTS
Fig 2.17
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Availability
Pepsi products
Coca-Cola products
Fig 2.18
Satisfaction
Pepsi products
Coca-Cola products
20
40
60
80
100
120
140
Fig 2.19
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6.
SUGGESTIONS
AND
CONCLUSION
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SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part of
Coca-Cola India. The suggestions are arranged in order of priority, highest first.
Perform a detail demand survey at regular interval to know about the unique needs
and requirements of the customer.
The company should make hindrance free arrangement for its customers/retailers to
make any feedback or suggestions as and when they feel.
The company should focus to bring some more flavors like health drinks and other
low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as
it has already entered the energy drink arena with Burn.
Coca-Colas distribution channel is mostly through retail. Whereas the competitors
also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try
to increase their distribution in these areas.
The company must keep a watch on its primary competitors in market in order to be
able to compete with them.
The company should use new attractive system of word of mouth advertisement to
keep alive the general awareness in the whole market as a whole.
The company should be always in a position to receive continuous feedback and
suggestions from its customers/ consumers as well as from the market and try to
solve it without any delay to establish its own good credibility.
A strong watch should be kept on distributors so that the goodwill of the BRAND
doesnt get affected.
CONCLUSION
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BIBLIOGRAPHY
BOOKS:
Marketing Management Kotler Philip.
Research Methodology Kothari.
WEBSITES:
www.thecoca-colacompany.com
www.news.bbc.co.uk
www.india-server.com
www.magindia.com
www.coca-colaindia.com
www.wikiinvest.com
www.open2.net
OTHERS
Annual report of Coca-Cola 2008.
Annual report of Coca-Cola 2009.
ANNEXURE
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QUESTIONNAIRE
NAME:
..............................................................................
GENDER:
a) Male
b) Female
Do you drink Soft drinks?
a) Yes
b) No
How often do you have soft drinks per week?
a) Once a week
b) Twice a week
c) Thrice a week
d) Everyday
e) Rarely
What drink comes to your mind when you think of soft drinks?
a) Coca-Cola
b) Pepsi
c) Other products of Coca-Cola
d) Other products of Pepsi
e) Other drinks
What quantity do you usually prefer to buy?
a) 200-250 ml Glass bottle
b) 300 ml Can
c) 500 ml Pet bottle
d) 1 litre
e) 2 litre
What do you feel about Coca-Cola product range?
a) Excellent
b) Good
c) Satisfactory
d) Below Satisfactory
e) Bad
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Coca-Cola Products
Pepsi Products
...............................................................................................................
Thank you!
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