Research Project

On
Market Strategy of

Submitted for partial fulfillment of the requirement for the award of the
degree of

Master of Business Administration

By

VIJAY KUMAR

Roll Number:-80301317058

Under Guidance Of

Mrs. J.J Maini (Head of Management Department)

MALOUT INSTITUTE OF MANAGEMENT AND

INFORMATION TECHNOLOGY
(Established by Govt. of Punjab)

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2
 PREFACE
The material presenting in this report is mainly secondly date
colleting and thereafter has been analyzed and interpreted. The report
also contains – primary data as back and proof of the objective method
of data collection, analysis and interpretation.

I would like to express special gratitude to Mr. V M, Cold Drink who

give me valuable information to complete this project. All these who
helped me, in however a way by assisting me to get the information
needed to prepare this report is entitled to my heartful thanks.

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 Acknowledgement
I am very much obliged to Professor: Mrs. J.J. Maini my internal
guide who has given me valuable suggestions by providing me feedback
with which I was immensely benefited.

I was also very much benefited by the help being provided by my

institute, by providing me with the necessary information, reference
books and internet that I required.

CONTENTS

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 Chap
ter No: Contents

1. INTRODUCTION

1.1.1 BIRTH OF A REFRESHING OF IDEA

1.1.2 THE SECRET FORMULA OF COCA-COLA
1.1.3 MISSION OF COCA COLA INDIA
1.1.4 VISION OF COCA-COLA COMPANY
1.1.5 PRODUCTION DEPARTMENT
1.1.6 PRODUCTION PROCESS
1.1.7 RESEARCH OBJECTIVES
1.1.8 SCOPE OF THE STUDY

2. MARKET STRATEGY OF COCA-COLA

2.1.1 INTRODUCTION OF MARKETING

2.1.2 WHAT IS MARKETING
2.1.3 WHAT IS THE MARKET STRATEGY
2.1.4 MARKET STRATEGY RELATED WITH MARKET SEGMENTATION
2.1.5 MARKETING MIX STRATEGY
2.1.6 MARKETING MIX
2.1.7 TYPE OF PRODUCT
2.1.8 PRODUCT MIX
2.1.9 PRODUCT DECISION
2.1.10 PRODUCT LIFE CYCLE
2.2. PRICE
2.2.1 PRICE OF THE COCA – COLA’S
2.2.2 PRICING POLICIES
2.2.3 VARIOUS PRICING POLICIES
2.2.4 THREATS AND OPPORTUNITIES FOR PRICE
2.2.5 STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”
2.3. PLACE
2.3.1 CONTROL OF OUTLET
2.4. PROMOTION
2.4.1 ADVERTISEMENT
2.4.2 PROMOTION STRATEGIES
2.4.3 FACTORS EFFECTING SALES
2.4.4. COMPETITION

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2.4.5 SOWT ANALYSIS OF COCA-COLA

3. DATA SOURCES

3.1 PRIMARY SOURCES

3.2 SECONDARY SOURCES
3.3 SAMPLING PLAN
3.4 LIMITATIONS

4. ANALYSIS AND INTERPRETATION

FINDINGS

CONCLUSION
QUESTIONNAIRE

Chapter 1

6
 1. INTRODUCTION
1.1.1 Birth of a Refreshing Idea

John Styth Pemberton first introduced the refreshing taste of Coca Coal in Atlanta
Georgia. It was may of 1886 when the pharmacist contacted a Caramel coloured
syrup in a 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 Coca Cola at the soda fountain, whether by design
or accident carbonated water was termed with the new syrup. Producing a drink that
was proclaimed delicious and refreshing..

By 1886 sales of Coca Cola averse nine drinks per day. That first year Dr.
Pemberton sold 25 gallons of syrup shipped in bright red wooded kegs. Ref has
been a distinctive colour associated with number of soft drink brand ever since. For
his efforts Dr. Pemberton grossed $ 50 and spent $ 73.96 on advertisement.

In 1981, Atlanta entrepreneur as a candler has acquired complete ownership of the

Coca Cola business within four years, his merchandising flair helped expand
consumption of Coca Cola to every state and territory in 1919. The Coca Coal
Company was sold to a group of investors for $25 million. Robert W. Woodreff
became president of the Coca Coal Company in 1923 and his more than six decade
of leadership took the business to unrivaled heights of commercial success, making
Coca Coal in institution the world over.

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1.1.2 The secret formula of Coca Cola

The mystique of Coca-Cola was also enhanced of course, by its secret

formula, whose blend of flowers was code-named 7x. Soon after frank Robinson
brought him the formula, as a Candler changed it. His son said that he did so
because the Palmerton product did not have an altogether agreeable taste. It was
unstable; it contained too many things, too much some ingredients and too little of
other the bouquet of several of the volatile essential oils previously used was
adversely affected by some ingredients. The main reason that Candler modified the
formula was to distinguish it from all the other recipes floating around. At least ten
people had access to the origin Palmerton. Robinson had a particularly keen nose
and pallet and could detect even a trace of an off flavor, although there are rumors of
the secret formula is no longer a secret, the magical formula of Coca-Cola called 7x
still remain distinctive in flavor till date.

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 1.1.3 MISSION OF COCA COLA INDIA
Create consumer products, services and communication, customer service and
bottling system strategies, processes and takes in order to create competitive
advantage and deliver superior value to

- Consumer as a superior beverage experience.

- Consumers an opportunity to grow profits through the use of finished

drinks.

- Bottlers as an opportunity to grow profits and volume.

- Suppliers as an opportunity to make reasonable profits when creating real

value added in an environment of system wide teamwork, flexible business
system and continuous improvement.

- Indian Society in the from of a contribution to economic and socio

development.

Coca Cola has been termed a failure in India because of its inability to establish itself
as a market leaded. The primary brands for the Coca Cola Company are Coke and
Thums Up. The competing brands for Coca Cola are Pepsi Cola and Mirinda.
According to brand wise market share, Coke lags behind Thums Up and Pepsi.

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 1.1.4 VISION OF COCA-COLA COMPANY

To achieve sustainable growth, we have established a vision with clear goals.

Profit: Maximizing return to share owns while being mindful of our overall
responsibilities.
People: Being a great place to work where people are inspired to be the best they
can be
Portfolio: Being to the world a portfolio of beverage brands that anticipate and
satisfy people’s desires and needs.
Partners: Nurturing a winning network of partners and building mutual loyalty.
Planet: Being a responsible global citizen that makes a difference.

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 Organization Chart

Board of Director

General Manager

Production Finance Marketing Sales

Manager Manager Manager Manager

Assistan Supervisor Subordinates

t
Manager

Workers

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 1.1.5 PRODUCTION DEPARTMENT
Types of Product:-

A Coca Cola Company Limited produce the top ten brands with very successful are
as under:-

1) Coca Cola
2) Sprite
3) Fanta
4) Diet Coke
5) Cherry Coke
6) Citra
7) Mr. Pibb
8) Fruitopia
9) Frescu
10) Fumbling Foot Bear

Some product produce by Hindustan Coca Cola Beverages Pvt. Ltd. are as under.

1) Coca Cola
2) Fanta
3) Sprite
4) Crush
5) Maaza
6) Thumps up
7) Canada dry
8) Kinley soda
9) Kinley water

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 1.1.6 PRODUCTION PROCESS

SUPPLY WATER CHLORINE SAND

CHAIN PROCESS FILTER

UV OSNAIS SOFTENER ACTIVATED

SYSTEM CARBON

TREATED SUGAR SYRUP CARBON

WATER TREATED TREATMENT

DILUTION MOTNER SAMPLE FILTERISATION

SYRUP SYRUP &
FLAVOUR

CHILLING CARBON SOFT DRINK BOTTLING

DIOXIDE READY

EMPTY BOTTLES
ARE BROUGHT

BOTTLE
SNARLING

BOTTLE
WASNER

COSMETIC
SODA

SIMPLE HOT INSPECTION CHLORINATED

WATER SOFT WATER

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 LABELING

In production process first the water is taken from earth (underground) with the help
of motor and machines. Then it is put in the tank. This water is not pure water. There
are mainly bacteria in it. So to remove the bacteria the water is passed from chlorine.
Now the water is coming from underground so in that water there is sand, smell and
colour etc. To remove this the water is passed from sand water. Now the water is
sandless, smellness but in this water there is chlorine to remove this chlorine it is
passed from the activated carbon plant, which remove the chlorine from water after
giving all this treatment the water will become hard so to make it soft the water is
passed from softer plant. Then water will become soft water will pass from R osnais
plant. Now the water is passed from ultra violet rays to remove the bacteria and at
the end treated water is reach.

Now the treated water and sugar are mixed and it will become syrup. The syrup is
given carbon treatment to make syrup pure. After this it will filter in a filterisation plant
and simple syrup is reach. In this simple syrup flavour is added. This flavour is the
secret formula brought from Pune. Now the motner syrup is ready, to keep the soft
drink good in bottle before the consumer use. Now it is packed in the bottles.

Empty bottles are brought and the bottles are snarled before being felt in to the bottle
wasner. Uncleanable and defective bottles are segregated. The bottle washing
operation takes entirely minutes. Bottles are thoroughly washed, cleaned and
scrutinized in a simple hot water and then in caustic soda and at last in a final rinse
of chlorine soft water bottles are washed. Washed bottles are carefully inspected and
bottles are filled. At the end the production date is printed and the labeling is done.

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 1.1.7 RESEARCH OBJECTIVES

The objective of my project report is to study To find out the Market

Strategy of coca cola related with there Market Mix four P’s Product ,
Price, Promotion, Place and Strategy related with there segmentation.

• To know effectiveness of the marketing strategy, sales promotion

& distribution of Coca Cola in market.

• To know the market share of Coca-Cola.

• To ensure the availability and visibility of product.

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 1.1.8 SCOPE OF THE STUDY
Scope of the study for Coca-cola by this study the company will come to
know:-

To find out problem of the counters and to find out their

requirement for
more sales.

About market share of Company comparison to Pepsi.

Through this study company will know about the availability of its
products
in the Market.

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 Chapter 2
2. MARKET STRATEGY OF COCA-COLA

2.1.1 INTRODUCTION OF MARKETING

Marketing is the important function of business. Marketing identifies customer’s

needs wants and determine the goal of marketing is to create customer
satisfaction many people see marketing only as advertising or selling but real
marketing does not involve only it. It is an art of selling what you make marketing
is all around us. “We define marketing as a social and managerial process by
which individuals and groups obtain what they need and want through creating
and exchanging products and
value with other.”

2.1.2 WHAT IS MARKETING

Marketing means “ A social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging
products and value with others.”

Marketing creating customer value and satisfaction Coca – Cola long the
world’s leading soft drink delivers on the simple but enduring promise, “Always
Coca – Cola” always thirst quenching always god with food, always cool always a
part of our life. These and other highly successful companies know that if they
take care of their customers, market share and profits will follow.

We know marketing is all around us we see marketing in the advertising that

fill own television soon, magazines and mail box. Marketing more than any other
business function, deals with customers creating customer value and satisfaction
are the heart of modern marketing thinking and practice, and marketing is the

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delivery of customer satisfaction at a profit. The two fold goal of marketing is to
attract new customers by promising superior value and to keep current customer
by delivering satisfaction.

2.1.3 WHAT IS THE MARKET STRATEGY

A Marketing Strategy is a process that can allow an organization to concentrate
its limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. A marketing strategy should be centered
around the key concept that customer satisfaction is the main goal.

Key part of the general corporate strategy

Marketing strategy is a method of focusing an organization's energies and

resources on a course of action which can lead to increased sales and
dominance of a targeted market niche. A marketing strategy combines product
development, promotion, distribution, pricing, relationship management and other
elements; identifies the firm's marketing goals, and explains how they will be
achieved, ideally within a stated timeframe. Marketing strategy determines the
choice of target market segments, positioning, marketing mix, and
allocation of resources. It is most effective when it is an integral component of
overall firm strategy, defining how the organization will successfully engage
customers, prospects, and competitors in the market arena. Corporate strategies,
corporate missions, and corporate goals. As the customer constitutes the source
of a company's revenue, marketing strategy is closely linked with sales. A key
component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement .

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2.1.4 MARKET STRATEGY RELATED WITH MARKET
SEGMENTATION

Market consists of buyers and buyers differ in one or more ways, they may differ
in their wants, resources location, buying attitude etc. each buyer is potentially a
separate market. Ideally, a seller must design a separate marketing program for
each buyer.

Most sellers face large no. of small buyers and do not final complete
segmentation worth while instead; they look for brand classes of buyers who
differ in their product needs or buying responses.

 Types of Segmentation:-

1 Geographic segmentation:-

Dividing market by its geographical limits does it. For example dividing the
market as rural market urban market, International market, domestic market
etc.

2 Demographic segmentation:-
It is done because of population of a particulars state of a country.

3 Psychographics segmentation:-
It is done because of taste, chose in company preferences, psychology etc.

4 Behavioral segmentation:-
It is bone because of the behavior of the consumer.

Major Segments

Major segments are basically those people who take this drink daily and those areas
where the demands is higher then the other areas. There are so many people who
take this drink daily and those people who take weekly and those who take less often
are always there as well. So, their basic segments are those people who take this
drink regularly.

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Market Targeting

Marketing targeting involves evaluating each markets segment attractiveness

and selecting one or more segment to enter.

A Company should target segments in which it can generate the greatest

consumer value and sustain it overtime. A Company with limited resources might
decide to save only one or a few special segments.

TARGET MARKET STRATEGY

Coke’s commercials basically based on young generations, So, the young

generation is the target market of Coke because they want to represent Coke with
the youth and energy but they also consider about the old people they take then as a
co-target market.

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 2.1.5 MARKETING MIX STRATEGY

Once the company has decided on its overall competitive marketing strategy, it
is ready to being planning the details of the marketing mix. The marketing mix is one
of the major concepts in modern marketing. We define marketing mix as the set of
controllable tactical marketing tools that the firm blends to produce the response it
wants in the target marketing. The marketing mix consists of everything the firm can
do to influence the demand for its product. The many possibilities can be collected
into four groups of variables known as the “Four Ps”: product, price, place, and
promotion. Figure shows the particular marketing tools under each P.

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 2.1.6 MARKETING MIX

1 PRODUCT 2 PRICE
Product variety List piece
Quality Discounts
Features Allowance
Brand name Payment
period
Size Credit terms
Services
Warranties
Returns

Target
Customers

Intended
Positioning

3 PROMOTION 4 PLACE
Advertising Channels
Personal selling Coverage
Sales promotion Assortments
Public relations Locations
Inventory
Transportation
Logistics

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1 Product

“Anything that can be offered to a market for attending, acquisition, use or

consumption that might satisfy a want or need. It includes physical objects
services, persons, places organizations and ideas.”

 Levels of Products:-
There are three levels of product:

Core Product:-

The problems solving services are core-benefits that consumers are really
buying when they obtain a product.

Actual Product:-

A product’s parts, quality, level, features, design brand name packaging and
other attributes that combine to deliver core product benefits.

Augmented Product:-

Additional consumer services and benefit build around the care and actual
products

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Product Line

Retailer can classify by the length and breath of their product assortment.
The most important type of retailers is:

 Specialty store
 Department store
 Super market
 Consequences store
 Super store
 Service business

2.1.7 TYPE OF PRODUCT

The various type of product manufacturing by Hindustan coca cola beverage

pvt ltd.are as follow:-

1. Coca-Cola
2. Fanta
3. Sprite
4. Crush
5. Maaza
6. Thumps up
7. Diet coke
8. Canada dry
9. Kinley soda
10. Kinley water

In the world, Coca-Cola company make and selling their 300 product.
But in India, Coca-Cola Company selling a 8 product of carbon dioxide and other
are safe water.

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2.1.8 Product Mix

A product mix is a set of all the product lines and items that a particular seller
offers for the sale.

A company’s product mix dimension provides the handles for defining the
company’s product strategies. The company can increase its business in three
ways:

 It can add new product lines.

 Its new product line builds on the company’s reputation in its other lines.
 The company can lengthen its existing product line to become a more full line
company.
--- Coca-Cola product like Coca-Cola, Fanta, Sprite, Thumps up
, are provided in various quantity packs such s 300 ml, 500 ml, 1 liter, 1.5 liter
and 2 liter.

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2.1.9 Product Decision

Figure show the important decisions in the development and marketing of

marketing of individuals products and services. We will focus on design about
product attributes brandings, packaging, labeling and product support services.

Product Attributes
Developing a product or service involves defines the benefits that it will offer,
these benefits are communicated and delivered by product attribute such as quality,
features and decision.

Product Packaging Labelin

Attribute Branding g

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Branding
Brand is a name term, sign, symbol, or design or a combination of their
intended to identity the goods or services of one seller or a group of seller and to
differentiate them from those of competitors. The various brands of Coca-Cola in
India are the following:

1. COCA-COLA

Slogan:- “Open Happiness”

“Coca-Cola” has a truly remarked heritage. From a humble beginning in

1886. It is now the flog ship brands of the largest manufacturers markers,
distributor of non-alcoholic beverages in the world.

2.THUMPS UP

Slogan:- “Taste the Thunder”

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 It is a leading carbonated soft drink and most trusted brand in India.
Originally introduced in 1977. “Coca-Col” Company acquired Thumps UP in
1993.

3. FANTA

Slogan:- "Fanta ka signal loud. Bunking allowed."

The orange drink of “Coca-Cola” Company is seen as one of the favorite

drink since 1940. It entered in India market in 1993.

Over the years it has occupied a strong market place and is identified as “FUN
CATALYS”.

4. KINLEY WATER

Slogan:- “Boond Boond Mein Vishwas”

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5. KINLEY SODA

6. SPRITE

Slogan:- “Clear Hay”

Worldwide sprite is ranked as no.4 soft drink and is sold in more than 190
countries.

In India sprite was launched in 1999 and today it has grown to be one of the
fastest growing soft drink.

7.LIMCA

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 8. MAAZA

9.PULPY ORANGE

PACKAGING & LABELNG

Packaging means the activities of designing and producing the container

or wrapper for a product.
Traditionally packaging decisions where based primarily on cost and
production factors, the primary function of the package was to contain and protect
the product. In recent time, however humorous factors have made packaging an
important marketing tool. These factors include all acting attention describing the
product making the sales.
Packaging involves designing and producing the container or wrapper for
product. The package may include the product’s primary container a secondary
package that is thrown away when the product is about to be used and shipping
package necessary to store , information appearing the product labeling printed
information appearing on or with the packaging is also part of packaging. Label ways

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rouge from toys attached from product the to complex graphic that identify the
product or brand, such as the product the label weight also described several things
about the product who made its contents how it is to be used.
Packing refers to the activities of designing and producing the container or
wrapper for a product. The package may include the products primary container.

Coca-Cola products, almost all of them are available in bottles of 250 ml, 500 ml
pet jar, 1000ml, 1500 ml and 2000 ml bottles as well as 330 ml cans.

The company use cola lime for preparing Coca-Cola from Pune, getting raw-
material (glass) from approved suppliers.
The advantages of packaging are as follows
 In strip packaging there is aluminum foil on both the sides. strip
packing is done for providing stability to those products which are
having less productivity.
In facilitates branding and advertising of products.
 In serves as a silent salesman. It induces the buyers to make re order.
 It has got display value.
 It helps the seller to increase his sales and obtained higher prices than
he could get from unpacked good.
 Printed literature containing “Instruction to use the product” can be
easily passed on to the consumers by putting in the package.
 Packaging given the product a prestige an individually and identity
which the goods sold in loose form do.

LEBLELING
Labels may range from simple tags attached to products to complex
graphics that are part of the package.

Labeling is mainly done in order to promote the product through attractive

graphic. In the “Coca-Cola” company, the labels are provided with bottles.

QUALITY

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 The better attributes of the product may be called the quality of the product.
Quality means the ability of the product to perform its functions, overall durability,
precession, case of operation and repair and other valued attributes.

Quality is one of the product which is more important in any product.

Consumers purchase only those products which satisfy their needs and wants.
Which quality result is 100 % and it was good quality than consumer easily
purchased it. Consumer’s satisfaction is closely linked to quality. If any types of
problems arises in quality of product then consumer move to another product.

Coca – Cola’s company also believed on quality. It always take care the
quality. In the company of Coca – Cola they have special category of research
and development when its quality cheeked by the quality expert and after the
quality checking it reach to the consumer because quality is the main function of
any product. Coca – Cola is a quality conscious product due to it taste is same all
around the world.

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 2.1.10 PRODUCT LIFE CYCLE
After launching a product the company wants to survive in a market to
earn a reasonable profit and for the progress and development of the product, but
the product has its own life after its launching into the market it has to pass
through various life cycle stages.

1. Product Development:-

It begins when the company finds and develops a new product concept
or idea. During a product process development sale is zero.

2. Introduction:-

It is a period of slow sales growth as the product is being introduced in the

market. Profits are non-existent in this stage because of the heavy expense of
product introduction.

3. Growth:-

It is a period of rapid market acceptance and increasing profit.

4. Maturity:-

It is a period of slow down in achieve acceptance by most potential buyers

and finally profit level declines.

5. Declines:-

It is a period when product sales fall and profit decline.

Coca-cola is now enjoying the stage of Growth. It is only depends on

company R & D and it’s newness in products. Other factor is that is company has
a strong advertisement strategy policy and it has only one main competitor
PEPESI.

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PRODUCT ADVANCEMENT

In April 1985 the company proudly introduces the new taste of coke the first
change in the secret formula since the product was created in 1886. The launch of
coke with the new taste took place in the United States and Canada. While the initial
response to the new taste confirmed the company’s marketing research, many
consumers told the company they also wanted on option. The company listened and
in July 1985 the original formula of coca-cola returned as Coca-Cola classic, in 1886,
Coca-Cola became an still remains the top selling soft drink of the united state of
America. It is a brand No.1.

2.2.PRICE

“Price is the amount of money customers have to pay to obtain the product
ford calculates suggested retail prices that are dealers might change for each
Taurus. But ford dealers relay charge the full sticker price. Instead they negotiate
the price with each customer offering discount trade in allownness and credit
terms to adjust for current competitive situation and to bring the price in the line
with the buyer’s perception values.

Price is important to stay in the competition every company. If price is very

high then products sales will be reduced. If price is less then product sales will be
increase. But at a less price company will be not able to get profit. So product
price decide according to its competitors based price.

Pricing policy is important because it is directly affects the earning of the

concern and there fore its successful functioning. Price is the amount of money
customers have to pay to obtain the product.

35
 Coke launched the 200ml. bottle at Rs. 5/- in early 2003 which is attract the
consumer. After doubling process its capacity is six month flat. The cola major
had 28 new lines running in six months flat and even suppliers double capacity.
Coke spent big money 100 million in 2003 and 70 million in 2004 to found the
growth initiatives. For the first in months in 2003 the company registered more
than 40 % growth. The Rs. 5/- coke skv was often retailed at Rs. 6/- and the price
point was popular. That is concerned nearly 80 % of the market and 300ml. price
was Rs. 10 /-

2.2.1 PRICE OF THE COCA – COLA’S

200 ml 300 ml 500 ml 1 Liter 2 Liter

Coca – 07 12 25 32 60
Cola
Thums 07 12 25 32 60
Up
Sprite 07 12 25 32 60
Fanta 07 12 25 32 60
Mazza - 12(250ml) - - -
Minute - - - 45 -
Maid
Kinley - 12 15 32 60
Soda
Kinley - - - - -
Water
Limca 07 12 25 32 60

2.2.2 PRICING POLICIES

36
 Pricing policies or strategies have played major, role in the company’s
growth and development over the course denotes the value of product or service
expressed in money only when a buyer and seller agree on price they can
exchange and transact the good and services and lead to transfer of ownership.

Price is a economic factor and pricing an economic mechanism have

received considerable attention at the hands of economist price includes average
total cost and managerial revenue price elasticity of demand and price
determination under different competitive situation.

2.2.3 Various Pricing Policies

A company may choose various kinds of pricing for their product.

At “Coca-Cola” Company limited the price of the product like soft drink,
mineral water, etc. are determined according to various internal and external
factors such as:

 Cost of Row-Material
 Fix Cost
 Variable Cost
 Cost of Packing
 Cost of Sales Promotion

2.2.4 THREATS AND OPPORTUNITIES FOR PRICE

Opportunities

If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget

After paying all these taxes coke has to pay electricity charges. We have to spend on
distributions. After paying all these expenses Coke’s margin squeezed and
consumers have to pay for increasing tariffs.

37
These are the opportunities through which we can increase the price and can get
profits.

Threats

There are much more threats in increasing prices. Because same problem of
substitute. If Coke increase the price lets say 1 rupee. Then people definitely won’t
go for coke. They have the best substitute of Coke that is Pepsi. So these are the
threats in increasing prices. Coke will lose the margin of its profit and can face loss.

2.2.5 STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”

To increase the price is the least thing, which Coke can adopt. There are so many
ways through which Coke can increase the profits. Some major ways are as follows.

• Volume can be increased

• Interest level of consumers
• To take part in energetic festivals

How to increase the volume of consumers?

Coke can increase the volume by expanding the industry of coke. Through
advertisements, offering different interesting things to attract people towards this
product.

How to increase the interest level of consumers?

Coke is increasing the interest level of consumers by offering different flavors.

For example Coke is increasing the number of flavors in “Fanta”, this is one of the
product of coke. Through offering different flavors Coke can increase the Level of
consumers and through this profits can be gained.

38
 2.3. Place
Distribution Channel

These channels transfer goods from producer to end users that are
consumers. It over comes the major factor such as time placed and possession
gaps that separate goods and services from those who would use them.
Members of the marketing channel perform many key functions. To the extant
that the manufacturer performs these functions, its cost rises and its price
becomes high. At the same time, when some at these functions are shifted to
intermediaries the producer is lower, but the intermediaries must change more to
cover the cost of their work in dividing the work of channel. Channel of
distributors are also called trade channels the problems of selecting the most
suitable channel of distribution for a product is complex. Channel is the
combination and sequence of agencies through which one more of marketing
follows and moves.

Distribution channels may be classified as non-integrated and integrated.

39
At “Coca-Cola” Ltd., the distribution channel is as under:

“Coca-Cola” Company Ltd.

Agents

Stock

Whole Sellers

Semi Whole Sellers

Retailers

Consumers

2.3.1 Control of Outlets

About 80% of all retail stores are independence accounting for two thirds of
all retail sales. Other forms of ownership include.

 Corporate Chain
 Voluntary Chain and Retailer Co-operative
 Franchise organization
 Merchandising Conglomerate

40
 2.4. PROMOTION

In evaluation of marketing promotion is not last element in Coca – Cola. In

promotion we include personnel selling, public relation, advertising etc., Coca –
Cola have highest marketing channels. When save the coast and time of the
company. So promotion is important in Coca – Cola.

With the types of products that Coca – Cola manufactures and markets,
needs and therefore markets can be found almost anywhere in the world.
Because these products are specially formulated and fulfill specific needs.
Consumer develops a loyalty towards these brands and these very consumers
promote these brands through world of month the same to their friends,
Colleagues and relatives.

Added to that is Coca – Cola strong advertising and promotional activities and
communication all of which together has ensured that pars enjoy a halting
presence and fame all over its most country India.

In simple word promotion means make popularity of products. It is one of the

part of 4 ‘P’ of marketing. Each and every company always tries to promotion its
products in market. That’s why company tried to realize its product future in the
mind of its customers company tried to make and image in customer mind.

Due to, all these factors company try to make selling more some time
company personally deal with trader. It applies its personal policy for increasing
sales. Company deal to trader that if it sells he could get some special discount
agter selling decide time limit. So, trader always tries to sell that product first. So,
company tries to promote its products to using all these formulas or factors.

41
 2.4.1 Advertisement

Advertisement is important to introduce the product in the market. Advertisement

is the channel of information for consumer advertising is long term channel which
gives benefit in long time when product advertise is very attractive then it affect
the consumer to purchase thereproduct. Advertising makes purchasing easy for
consumer.
Advertisements prove that the particular brand will be better than other brand of
same goods. Today without advertising products sale is very difficult TV
Channels, Radios, Posters, News Papers, Bill Broads are the main way of
advertising.

Advertisement

Coca cola company use different mediums

• Print media
• Pos material
• Tv commercial
• Billboards and holdings

Print Media

They often use print media for advertisement. They have a separate department for
print media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in
the stores and in different areas.

TV Commercials

As everybody know that TV is a most common entertaining medium so TV

commercials is one of the most attractive way of doing advertisement. So Coca Cola
Company does regular TV commercials on different channels.

42
 In India coke give advertising with help of super stars of films and player like
Amir Khan, Aishwarya Rai, Salman Khan, Vivek Obroy , Rajwardhan Rathod etc.
who are the best super stars of the bollywood and every person attract by them
and they gives different messages in their adds about the products.

ICoke select in their add shooter Raj Vardhan who is shooter of India who win
many medal in their shooting game and attract all Indians with their game and
coke selected him in their add and he attract the cokes consumers also with their
thoughts. Obray ,Aishwarya Rai, Virendra Shwag, Amir Khan, Hritik Roshan and
Raj Wardhan Rathod came with Coca – Cola add.

Today Coca - Cola has become the latest company to use an umbrella
advertising coma ping to support its portfolio of brand. Now the coca cola
company make new Brand ambassadors like Imran Khan,
Brand ambassadors:-

Imran Khan
Akshay Kumar
Gautam Gambhir
4. Kalki Koechlin

43
Billboards And Holdings

Coca cola is very much conscious about their billboards and holdings. They have so
many sites in different locations for their billboards.

2.4.2 PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products
in that shelves in that style which show their product more clear and more attractive
for the consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in
eye-catching positions. Normally they keep their freezers near the entrance of the
stores.

Sale Promotion

Company also do sponsorships with different college and school’s cafes and
sponsors their sports events and other extra curriculum activities for getting market
share.

UTC Scheme

UTC mean under the crown scheme, coca cola often do this type of scheme and
they offer very handy prizes in it. Like once they offer bikes, caps, tv sets, cash
prizes etc. This scheme is very much popular among children.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

Direct selling
Indirect selling

Direct Selling

44
In direct selling they supply their products in shops by using their own transports.
They have own vehicles to supply their bottles. In this type of selling company have
more profit margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very
difficult for them to cover all area of Pakistan by their own so they have so many
whole sellers and agencies to assure their customers for availability of coca cola
products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure
these includes:
• Freezers
• Display racks
• Free empty bottles and shells for bottles

Personal Selling:

Personal Selling involves business-to-business trade. In selling to

business, sales people may not offer brides to purchasing agents or to others
who can influence the sale. They may not obtain or use technical or trade secrets
of competitors through bribers or industrial espionage. Finally, sales people must
not disparage competitor or competing product by suggesting things that are not
true.

Public Relations:-

Building good relations with the company various public by obtaining

favorable publicity, building up a good corporate image handling or heading off
unfavorable rumors, stories and events. Major public relations tools include press
relations, product publicity corporate communications, lobbying and counseling.

Major Public Relations Decisions:-

45
a) Setting Public Relations objectives.
b) Choosing Public Relations Messages and Vehicles.
c) Implementing the public Relations Plan.
Evaluating Public Relations Results.

2.4.3 FACTORS EFFECTING SALES

There are so many factors, which affects the sale of coke. Here we are discussing
three major factors which effects coke.

• Per capita income

• Competitors
• Weather

Per Capita Income

First we will discuss about “ Per capita income”. This is major factor that affects the
sale of this soft drink. Because which every passing year budgets are becoming very
strict and tight in order to purchase things. So the disposable incomes of the people
are coming down. They spend heavily on rents, utilities, and education and basic
necessities and after that when they get extra money they think about this soft
drink .So the decreasing per capita income effects badly in selling and production of
this soft drink.And to get through with this difficulty there is need to increase the level
of per capita income of Pakistan because it is much lesser than the rest of the
countries.

Competitors

Coke’s major competitor is “PEPSI” and there is no hesitation to say this because
every one knows that and all the other cold drinks and water, coffee, tea are the
competitors.

Weather

46
Weather is the third major factor in effecting the Coke’s selling. This is
underdeveloped market so the coke’s consumption in summers is 60% and in
winters is 40%.

2.4.4. COMPETITION

Coke : “ Open Happiness”

Pepsi : “Youngistaan
ka WOW”

In 1886 John Pemberton whipped up a refreshing elixir or coca-leaf and coal

nut extracts in back of his Atlant home. By accident, his syrup was mixed with
carbonated not plan, water. Coca – Cola is born six year later, another druggist,
Caleb Brad ham of new Bern north Carolina, trade market the name of a new
cola concoction. Pepsi efforts on dyspepsia, or upset stomach. The battle
between coals brings. Although slowly at first.

That same year 1902, the first magazine advertisement for Coca – Cola
appeared in Munsey’s and it became obvious that the company would need
professional help in creating advertisements. In 1904, as a Candler, president of
the Coca-Cola company appointed the massengale agency trend to create an
image for Coca – Cola by having the art in its ads shoe people drinking the cola
and by attempting to carve out a sociological niche for its characters : middle to
upper class white Americans enjoying them selves on outings. Some how there
were always refreshment stands in the back of these scenes. At this pint in time
massengale advertised in newspapers and magazines but concentrated most
efforts on streetcars and billboards.

Massengale slogans were generally too long and Coca – Cola company trend
to curb this by hiring the W.C.D. Arcy agency to handle part of the Coca – Cola
account. Both ad add agencies shared the responsibility and covered their ads

47
with testimonials. Eventually, the massengale agency was bottled and in 1908 D
Arcy and fellow salesman Sam Dobbs dreamex up the idea for the world’s largest
outdoor sign at the time.

Mean while, Pepsi was tagging along. Its creator Caleb brad ham was busy
proclaiming Pepsi I cola to be “Exhilarating”, “Invigorating” and “Aids Digestion”.
“Don’t forget to purchase Pepsi at the soda fount ion.” In 1909, Pepsi too had its
own testimonial. The Coca – Cola company and ‘D’ Arey responded to Pepsi and
a slew of other would be challengers. Some amusingly called Coca – Cola and
Ko Ke Old/ By inserting phrases such as “Demand the genuine” and “Accept no
substitutes” in their advertisements. Coca – cola’s competitors repeatedly fail in
sales.

2.4.5 SOWT ANALYSIS OF COCA-COLA

Strengths:-

1.Best Quality:-

“Coca-Cola” means quality. When you reach for one of our beverages,
whether it is a soda, juice, water or a soft drink, you know that you are
getting a product made from purest water and finest ingredients.

2.Availablity:-

Whether it is big Taj Hotel or a small pan corner, whether it is an urban

area or a small-unknown village “Coca-Cola” or its brands. As Coca-Cola
are spread all over the world. If you would not get one brand of Coca-Cola
you may get another, but the trademark would be the same coke or thumps
up it doesn’t make any different.

48
 3.No.1 Brand in the world of soft drink:-

“Coca-Cola” is number 1 brand in whole world. We produce nearly 300

brands in almost 200 countries. “Coca-Cola” is proved to be no.1 in all over
the world, as it is a best quality product.

4.Acceptability:-

Our one of the most big strength is that our product is accepted every
where in the world, with the taste that every type of people that is of every
region and religion can be accept.

5.Affordability of our product:-

Our Product is such as affordable product that each and every class of
people can afford to purchase the product is almost the reasonable rates
and one can get the nice drink with the little amount.

Weakness:-

1.Other Substitute:-

When in a small village if can “Coca-Cola” is not available, consumer

may demand for its substitute like Pepsi or any low rate drink. This is the
major weakness of our product.

2.Government Interference:-

Government had made such a pools that we cannot raise or decrease

the price level of any beverage. Our substitute and we are found to sell our
product in a fixed rate. And other government interference is also there.

3.Low Bottling Capacities Procured:-

Experts says India bottling plants typically processed no more than 200
bottles per minute while the world wide norm for “Coca-Cola” was between
1200 to 1600 bottles per minute.

49
 Chapter 3

3. DATA SOURCES

Data is collected from both the Primary sources i.e. questionnaire and also from
Secondary sources.

3.1 Primary sources:

The primary source of data collection is through questionnaire. The Questions are
asked to 100 shopkeepers from Mandi Dabwali, Their view is recorded and used in
analyzing the data.

3.2 Secondary sources :

The secondary sources includes online sites, newspapers and Coca-Cola agency in
Mandi Dabwali.

3.3 Sampling Plan: - Sampling plan consists of

Sampling Unit: - The retailer of grocery shop, general store, betel shop, was
selected from different places of Mandi Dabwali..

Sample Size: - For this study I have taken sample size of 100 respondents

50
Sampling Procedure: - Simple Random sampling procedure was followed.

Sampling Method: - Data were collected by retailer survey. The retailers

are directly contacted and interviewed at their retail counter.

3.4 LIMITATIONS
Though this study was taken up with sincere effort to accomplish the
objectives,there were certain factors that held back the satisfactory completion of the
same.

These factors include:

The study being undertaken in the peak season of April month might not have
produced accurate data.

Some retailers shown non-cooperative behavior at the time of data collection

for this study.

The research was depend on the information provided by the

respondents(retailers). It may be biased or insufficient

51
 CHAPTER-4

4. ANALYSIS AND INTERPRETATION

Analysis of the data

Data are collected from Mandi Dabwali

Survey Analysis

The survey was conducted in different 100 outlets was conducted. It is not
enough to sport the giving the answers of Coca-Cola’s Market Strategy but it
make stronger to my secondary research. With the use of collected data I
have tried to give the answers of following questions:

Are they sold Coca-Cola company’s products? If yes then

proceed further.

1. How many outlets is coca-cola exclusive or Shared?

2. Market share of Coca Cola and Pepsi Company according

to the sales volume of month March, 2010.

3. Coca Cola and Pepsi empties (Cases bottles) available in

the outlets?

4. Channels of outlets?

5. Availability of cooling systems in the outlets?

6. How many outlets are seasonal and permanent?

7. How many Drinking shots are available on outlets?

8. How many outlets have Racks?

9.Income class of the outlets?

10. Supply of Coca-cola products?

52
1. How many outlets is CC exclusive or Shared?

90
80 Shared, 88
70
60
50
40
Coca Cola,
30 12
20
10
0
Coca Cola
Shared

INTERPRETATION
With the help of chart I have interpreted 88% outlets are selling Coke and
Pepsi both the brand (shared) and 12% outlets are selling only Coke
brand(exclusive). By this we understand Coca-cola availability in market.

53
2. Market share of Coca Cola and Pepsi Company according to the sales
volume of month March, 2010.

60
Coca Cola,
60
50

40
Pepsi, 40
30

20

10

0
Coca Cola
Pepsi

4th
13

3rd Q
57%

INTERPRETATION

According to chart we can see Coca -Cola Company is the market leader with
the 60% of the market share and Pepsi has only 40% market share in Dabwali town

54
 3. Coca Cola and Pepsi empties (Cases bottles) available in the outlets?

70

60 Coca Cola,
61
50

40
Pepsi, 39
30

20

10

Coca Cola
Pepsi

INTERPRETATION

It is clear from the chart that Coca cola has 61% empties comparing to 39%
of Pepsi. It shows the Place( distribution )strategy of Coca-Cola.

55
4. Channels of outlets?

80

70
Convenience
60 , 76

50

40

30 Grocery, 24

20

10

Convenience
Grocery

INTERPRETATION

As per chart we can say that max 76% outlets are convenience and 24% outlets are
Grocery. It shows it’s distribution channels.

56
 5. Availability of cooling systems in the outlets?

60

50 CC visi, 53

40 OWN, 31

30

20

10 P visi, 6
CC chest , 8

0 P chest , 2

OWN CC P visi CC
visi P
chest chest

INTERPRETATION

It is clear that 31% outlets have there own freeze, 53% outlets have Coca cola visi-
coolers and only 6% have Pepsi visi-coolers, 8% have Coca cola chest cooler and
only 2% have Pepsi chest cooler. By this chart we see it’s promotion policies and
streatgy.

57
 6. How many outlets are seasonal and permanent?

70

60

50 Permanent,
67

40
Seasonal,
33
30

20

10

Seasonal
Permanent

INTERPRETATION

According to data in Dabwali town 67% outlets are permanent and 33% outlets are
seasonal.

58
 7. How many Drinking shots are available on outlets?

80

70 Coca Cola,
78
60

50

40

30
Pepsi, 22
20

10

Coca Cola
Pepsi

INTERPRETATION

It is clear that 78% outlets have Coca cola’s drinking shots but only 22%
outlets have Pepsi Drinking shots. It shows that distribution strategy of coca-cola.

8. How many outlets have Racks?

59
 70
Coca Cola ,
60 67

50

40

30 Pepsi, 33

20

10

Coca Cola
Pepsi

INTERPRETATION

According to chart it is clear that 67% outlets have Coca cola’s rack but only 33%
outlets have Pepsi’s rack. It show the facilities given by the coca-cola company to
shopkeepers or outlets.

9. Income class of the outlets?

60
 60

50
Medium, 51

40 Low, 37

30

20
High, 12

10

0
High
Low
Medium

INTERPRETATION

According to data shown in the chart we can see that maximum 51% outlets
in Dabwali town comes under medium class,37% outlets comes under low category
and only 12% are in high class. It shows the market segmentation where the medium
shop has a high income.

10. Supply of Coca-cola products?

61
 80
73
70 se,
Ba
ily
60 Da
50
40
30 ,5 ,9
ek k
20 we ee
in W
3 in ,2
10 2
or
O
nc
e
do
m
11
l ,
0 Se No
Daily Base

Once in
Week

No

INTERPRETATION
By this chart we see its distribution to shops or it’s outlets. There is 73% on daily
base through their vans, two or three time in a week is 5%, once in week 9% ,
seldom base is 2% and where it’s van not come is 11%.

62
 FINDINGS
In Sirsa region Coca cola Company is providing less schemes to retailers
comparing to competitors. Some retailers are not satisfied with the schemes
provided by company

On some outlets Coke cases are available but bottles are exchanged
by competitors, therefore coke suppliers are facing problem to provide
them products due to lack of empties.

Some activation things like racks and hanger are not enough in Dabwali
market.

Coca cola is the most selling brand of the company.

Coke has been rapidly providing visi coolers to retailers at present 53 Coke
Visi-coolers are available in Dabwali town.

63
 CONCLUSION

It was nice experience for me to prepare the project of “The Coca Cola Co.” The
Coca Cola Company has been one of the dominant players in this field. The financial
health of the Company is good and can still today Coca Cola Company is a Profit
making company.

After thorough research, we come to the conclusion that the marketing strategy of
Coca Cola is working for them and the product is gaining popularity among youth
day by day.

64
 QUESTIONNAIRE

NAME………………………………………………….. Shop No/Mobile No. (Optional)……………………………

NAME OF SHOP/OUTLET……………………………………………………………

1. How many outlets is coca-cola exclusive or Shared?

CC only Shared Products

2. Maximum sale of Coca Cola or Pepsi Company according to the sales

volume of month March 2010.

Coca-Cola Pepsi

3. Coca Cola and Pepsi empties (Cases bottles) available in the outlets?

Coca-Cola Pepsi

4. Channels of outlets?

Convenience Grocery

5. Availability of cooling systems in the outlets?

Own Freeze Coca cola visi-coolers Pepsi visi-coolers

Coca cola chest cooler Pepsi chest cooler

6. How many outlets are seasonal and permanent?

Permanent Seasonal

7. How many Drinking shots are available on outlets?

Coca-Cola Pepsi

8. How many outlets have Racks?

Coca-Cola Pepsi

9. Income class of the outlets?

High Medium Low

65
10. Supply of Coca-cola products?

Daily Base Two or three times in a week

Once in a Week Seldom No

66
 BIBILIOGRAPHY

 Books

1. “Marketing Management” (Eleventh Edition), PHILIP KOTLER,

Pearson Education

2. “Strategic Management and Business Policy” (Third Edition) AZHAR KAZMI.

 News Papers

 The Times of India

 Website

 www.cocacola.com

 www.cocacolaindia.com

 www.google.com

 www.wikipedia.org

67
 Vijay Kumar

Roll No. 858

68
 M.B.A. 4th Sem.

69