Research Report

“Marketing Strategies at Hindusthan”

Submitted for the partial fulfillment towards the award of the degree in Master of Business

Administration of Mahamaya Technical University.

Submitted by: GAURAV GUPTA

ROLL. NO. 1013370018

(Batch: 2010-2012)

Under the Supervision of:

MR. HARSH AWASTI

Department Of MBA
NOIDA INSTITUTE OF ENGINEERING & TECHNOLOGY (NIET)
19, Knowledge Park- II, Institutional Area, Greater Noida
Gautam Budh Nagar (UP),India- 201306

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 STUDENTS’ DECLARATION

I am Gaurav Gupta, declare that the Project Work entitled “(Marketing Strategies of Hindustan
Coca-cola Beverages Pvt. Ltd.)” is my own work. I have put 45 days attendance with supervisor at
the center.

I further declare that to the best of my knowledge, the Project does not contain any part of any work
which has been submitted for the award of any degree/diploma either in this College or anywhere
else.

Signature of the Student

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 Acknowledgement:

The completion of this project gives me an opportunity to convey my regards to all those who helped
me to reach a stage where I have the confidence to launch my career in the competitive world of
management.
I am thankful to persons, who provided me the most needed guidance, suggestions and support to
make this project a wonderful reality.

Gaurav Gupta

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 TABLE OF CONTENTS

CONTENTS

Certificate from the Institute

Student Declaration
Acknowledgement
1. Mission statement
2. Introduction.
3. Coca Cola.
a. Coca Cola International.
b. History.

4. Management.
5. External Marketing Environment.
6. Market share.
7. Financial report.
8. Dividends and Cash Plan.
9. Products.
10. Market mix of Coca-Cola
11. Strategic planning.
12. Bottlers owned by Coca cola
Financial assets.
 Market share.
 Financial report.
 Products.
 Methodology
13. Some basic information regarding marketing of coke
a. Target market:
b. Major segments:
c. Factors effecting sales:
d. Major competitors:
e. Strategies of quality:
f. Threats from competitors:
g. Targets that would like to attain:
h. Expanding target market
i. Threats and opportunities for price:
j. Strategies of getting goals i.e. “high profits”:
k. Marketing strategy:
l. Expectations for the coming year:
14. Marketing strategies
15. Pest analysis
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 .

CHAPTER 1

INTRODUCTION OF ORGANISATION

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 HISTORY:
Coca-Cola Enterprises, established in 1886, is a young company by the standards of the
Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of
Coca-Cola that is the foundation for this Company.

The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr.
John Pemberton , began to produce Coca-Cola syrup for sale in fountain drinks.
However the bottling business began in 1899 when two Chattanooga businessmen,
Benjamin F. Thomas and Joseph B. Whitehead , secured the exclusive rights to bottle
and sell Coca-Cola for most of the United States from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as independent, local businesses

until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-
Cola Company merged some of its company-owned operations with two large
ownership groups that were for sale, the John T. Lupton franchises and BCI Holding
Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company
offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50
a share. On an annual basis, total unit case sales were 880,000 in 1986.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-
Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping
accelerate bottler consolidation. As part of the merger, the senior management team of
Johnston assumed responsibility for managing the Company, and began a dramatic,
successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total
revenues were $5 billion company is the world’s largest beverage company. They operate in
more than 200 countries & markets more than 2800 beverage products. Headquartered at Atlanta,
Georgia, they employ approximately 90500 employees all over the world. It is often referred to
simply as Coke or (in European and American countries) as Cola.

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 . The Mission Statement of the Coca Cola Company

Our mission statement is to maximize shareowner value over time.

In order to achieve this mission, we must create value for all the constraints we serve, including our
consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value
by executing comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink
beverages they want to drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our share of
worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows,
and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or serves our
products directly to consumers. We keenly focus on enhancing value for these customers and helping
them grow their beverage businesses. We strive to understand each customer’s business and needs,
whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging
market.

There are nearly 6 million people in the world who are potential consumers of our company’s
product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of
their beverage consumption demands and our ability to add value for customers. We achieve this
when we place the right products in the right markets at the right time.

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 MANAGEMENT:

The hierarchy of Coca Cola Company is as follows.

Chairma
n
Board of
governor
s
Vice Chairman
and chief
operating
officer

Executive Vice
Presidents

Senior Vice
Presidents

Vice
Presidents

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 HISTORY OF SOFT DRINKS

Problem at that time was how to cure all these disease, since no remedy was present at that time. It

was a big question for American people. So in 1885 Mr. John Paimwarlion who lives in Antonica

made a drink and registered it as TRENCH WINE COLA. In the beginning this drink was made with

mixture of cocaine and alcohol but later on it is named as COCO-COLA. A new brand named PEPSI

COLA in the year 1887.

 Indian History

Around 1948 the first branded soft drink in the Indian market. This soft drink was named as Gold

Spot. Before Coco-Cola entered the country to dominate the scene in 1950, Parle Exports Pvt.Ltd.

was the first Indian company to introduce a lemon soft drink.This drink was known as Limca and it

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was introduced in 1970. However before this they had introduced Cola Pepine which was withdrawn

in face of tough competition from Coca-Cola.

In the year 1977 Coca-Cola left Indian market and this brought in an opportunity for various Indian

companies to show their caliber. At this time a new soft drink was introduced by Parle products and

this was color. This drink was introduced with mighty saying "happy days are here again". As if

happy days went away with Coca-Cola. There was another company named pure drink, which

introduced the soft drink named Campa -Cola along with arrange and lemon flavours.

Just after this many more companies entered the soft drink market. A soft drink name double. I had

been introduced by a company Morden bakers. Another company Mohan meakins also came up with

a Soft drink named Mary & puch up, Mc Dowell came with thrill.,. Push and Sprint.

Previously there was no competition in the Indian soft drink market but with all companies coming

in the Indian market a huge competition was place with college advertisements. But in the year 1988

Pepsi was given permission to sell its soft drinks in the Indian market by the Government of Indian.

Coca Cola also come back in the year 1993.

 Coca-Cola in India

The Coca-Cola company entered India in early 1950, it setup four bottling plants at Bombay,

Calcutta, Kanpur and Delhi.

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In 1950, as were negligible companies in the Indian market therefore Coca-Cola did not faced much

competition and they were accepted in Indian market more easily. The brand was accepted by all age

group. The full credit must go to coca-cola for making soft drinks popular in Indian by end of

1977.Coca-Cola had captured more than 45% of market share in India Then Coca-Cola left Indian

following public regulations the company was required to Indianise or close operation come to

an end in July 1977.

Coca-Cola come back in the year 1993 after liberalization and was launched at Agra with the slogan

"Old wave have come to Indian again". At the time parle was the leader in the soft drink market and

had more than 60% of the total shore in soft drink. Coca-Cola joined hands with Parle and to enter

India after 17 years. By striking a 40 million deal with Parle. Coke almost made a clear sweep and

made its good as " To become all time all occasion drink not a special treat beverage."

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 CHAPTER 2

INTRODUCTION OF TOPIC

MARKET SHARE:
SHARE

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share.
This company controls about 59% of the world market.

GLOBAL MARKET SHARE:

SHARE:

The following table can show the worldwide operating segments.

(Table)

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 Unit case growth Non- All commercial
alcoholic Beverages
drink

10 year compound 5-year compound 2001 annual growth 2002 2002

annual growth annual growth

Compan Industry Compan Industry Compan Industry Company Compan Compan

y y y share y share y per
capita
Income

6% 5% 5% 5% 4% 4% 18% 9% 70

This shows that the market of the company is geographically vast and it is controlling it with great
success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit
cases and generated record volumes. Because carbonated soft drinks are the largest growth segment
within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are
focusing more on this and they are continually increasing the pace because they know that
accelerating this pace is crucial to their future success. Thus they are increasing their market day by
day.
The operation income earned by Coca Cola Company can be illustrated by the following pie chart.

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This strategy has worked a lot and it has helped them to become the World’s leading Soft Drink
Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The
data of the global unit sale of the Coca Cola Company can be represented by following chart.

(Figure)

So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume
increase by 4% with strong international growth of 5%. This is only due to the innovative marketing
programmers, which has deepened the relationship of the customers and Coca Cola. The financial
health and success of their bottling partners is a critical component of The Coca-Cola Company's
ability to build and deliver leading brands.

In 2002, the company had worked with their bottlers to turn good intentions into reality by
improving the system economics.

The results in 2002 reflect this steadily improving and mutually constructive relationship between
the Company and their bottling partners. The main reason behind this relationship is to continue
realizing shared opportunities for growth, with closer coordination of operations including customer
relationships, logistics and production.

EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS)

Political Analysis for Coca-Cola

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Non-alcoholic beverages fall within the food category under the FDA. The government plays a role
within the operation of manufacturing these products in terms of regulations. There are potential
fines set by the government on companies if they do not meet a standard of laws.

The following are some of the factors that could cause Coca-Cola company's actual results to differ
materially from the expected results described in their underlying company's forward statement:-

 Changes in laws and regulations, including changes in accounting standards, taxation

requirements, (including tax rate changes, new tax laws and revised tax law interpretations)
and environmental laws in domestic or foreign jurisdictions.

 Changes in the non-alcoholic business environment. These include, without limitation,

competitive product and pricing pressures and their ability to gain or maintain share of sales
in the global market as a result of action by competitors.

 Political conditions, especially in international markets, including civil unrest, government

changes and restrictions on the ability to transfer capital across borders.

Political structure and legal considerations also have impinged on Coco-Cola Company’s strategies.
Governments of some Arab nations boycotted Coca-Cola’s products due to a political dispute and
discontented with the company for maintaining distributors in Israel.

Economical Analysis

Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca-Cola to exploit
the economies of scale that was gained by its global marketing and at the same time making its
products appeal to local taste, which these have earned the company an enormous profits quarterly.

As Coca-Cola has expanded over the decades or even nearly a century, the company has benefited
from the various cultural insights and perspectives of the societies in which business is done. No
doubt of the remarkable experience it has, it is still very committed to local markets, to paying
attention to what people from different cultures and backgrounds like to drink, and where and how
they like to drink it, to remain competitive and to develop more new drinks to satisfy its markets.

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Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in
beverage industry globally and about 70 percent of its income comes from countries outside United
States. Every 10 seconds, 126,000 people in the whole world, choose to reach out for one of The
Coca-Cola Company brands, and it is the company’s mission to make that choice exciting and
satisfying, every single time.

Previously the U.S. economy was strong and nearly every part of it was growing and doing well.
However, things changed. Before the attacks on September 11, 2001, the United States was starting
to see the economy recover slightly and it is only just recently that they achieved the economic
levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and
eating out at restaurants. However, many are still handling their money cautiously. They believe that
with lower inflation still to come, consumers will recover their confidence over the next year. As
researching for new products would cost less the Coca-Cola Company will sell its products for less
and the people will spend as they would get cheap products from Coca-cola.

Social Analysis for Coca-Cola

Foreign environment factors have influenced the Coca-Cola’s strategies in international marketing.
Culture has a tremendous effect on people’s preferences and perception. Language is one of the
aspects of culture that marketers must take care of, in term of translating product name, slogans and
promotional messages so as not to convey the wrong meaning. Coca-Cola did not look much into
this aspect when entering into the markets of countries like China and Taiwan as the literal
translation of Coca-Cola in Chinese characters mean, “bite the wax tadpole”.

Changes are necessary in international marketing for consumer’s products, as it is important that the
products suit one’s taste, preferences and fulfill one’s needs. Coca-Cola has continued changing,
improving and developing new drinks to appeal to local tastes.

After discovering that Coke did not appeal as much to Japanese consumers, Coca-Cola developed
over 30 new drinks for the Japanese market, which inclusive of Asian tea, English tea, coffee and
fermented-milk drink.

In China, Coca-Cola has also begun the similar strategy of introducing beverages developed for the
taste buds of local market. It launched a fruit juice drink called Tian Yu Di (Heaven and Earth)
specifically for the Chinese market with

planning of introducing the market with a Chinese iced tea and soy milk drink.

Many U.S. citizens are practicing healthier lifestyles. This has affected the non-alcoholic beverage
industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic
beverages. Also, time management has increased and is at approximately 43% of all households. The
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need for bottled water and other more convenient and healthy products are in important in the
average day-to-day life.

Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large
population of the age range known as the baby boomers. Since many are reaching an older age in life
they are becoming more concerned with increasing their longevity. This will continue to affect the
non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages.

Technological Analysis for Coca-Cola

production of the Coca-Cola company has increased tremendously then it was few years Some
factors that cause company's actual results to differ materially from the expected results are as
follows:

 The effectiveness of company's advertising, marketing and promotional programs. The new
technology of internet and television which use special effects for advertising through media.
They make some products look attractive. This helps in selling of the products. This
advertising makes the product attractive. This technology is being used in media to sell their
products.

 Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier
to carry and you can bin them once they are used.

 As the technology is getting advanced there has been introduction of new machineries all the
time. Due to introduction of this machineries the ago

 Coca-Cola has six factories in Britain which use the most state-of the-art drinks technology
to ensure top product quality and speedy delivery. Europe's largest soft drinks factory was
opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology
to produce cans of Coca-Cola faster than bullets from a machine gun

MARKET SHARE BY AREA:

Coca Cola is the world-renowned soft drink and the company is currently operating through out the
world. The world wide total is about 17.8 billion.
The operation review according to the segments is as follows.

Operation Review

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 (2002 worldwide unit case volume by operating segment)

NORTH LATIN EUROPE & ASIA AFRICA

AMERICA AMERICA MIDDLE EAST

30% 25% 22% 17% 6%

NORTH AMERICA

LATIN AMERICA

EUROPE & MIDDLE

EAST
ASIA

AFRICA

So the volume is least in the Africa and most in the North America. The data about the market share
of this company area wise is given in the following table.

The above table shows the geographical earning of the Coca Cola Company and from this data; we
can find out that the customers of Coca Cola are increasing which is shown by the company’s per
capita income.

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 Unit case equals 24 eight-ounce servings. The column, which shows the non-alcoholic beverages
consist of commercially, sold beverages, as estimated by the Company based on available industry
sources. The country column is derived from

The Company's unit case volume while the industry column includes nonalcoholic ready-to-drink
beverages only, as estimated by the Company based on available industry sources.

(Table)
Country Unit case growth Non- All commercial
alcoholi Beverages
c
Drinks
10 year compound 5-year compound 2002 annual 2002 2002
annual growth annual growth growth
Compan Industry Compan Industry Compan Industry Compan Compan Compa
y y y y share y share ny per
capita
Income
North 4 5 3 3 2 2 22 15 398
America
United 4 5 3 3 2 2 23 16 419
States
Latin 6 7 6 6 3 4 24 15 205
America
Argentin 7 4 6 2 7 2 20 10 236
a
Brazil 5 5 3 6 3 5 23 13 144
Chile 9 6 5 3 (2) 3 56 23 336
Mexico 7 10 8 9 2 5 22 18 462
Europe 6 3 5 3 2 4 12 6 72
& Middle
East
Eurasia 17 8 6 5 (14) 1 14 5 39
France 8 3 9 3 7 3 9 5 110
Germany 1 2 (1) 1 (6) 1 14 7 193
Great 8 2 11 2 8 3 17 6 193
Britain
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 Italy 1 3 4 3 2 2 9 6 104
Middle 12 12 7 5 4 8 8 3 17
East
Spain 6 4 8 5 4 4 17 12 264
Asia 7 6 6 7 10 7 14 5 23
Africa 7 6 8 3 10 6 34 11 34

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and
the average consumer enjoys close to two servings of our products each month. Through an intense
focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 10
percent in 2002. With developing economies and

populations, this region has strong long-term potential, and the company is building an exciting
family of beverage brands in addition to expanding the popularity of our core brands, led by Coca-
Cola. In China, for example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca
Cola in Asia can be shown by the following pie chart.

(Figure)

So the company is emphasizing more in this area and is trying to develop a strategy, which can
increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of
Asia, Japan has the highest percentage, which is about 29%. Among others, India, India and
Bangladesh are those countries where the average consumption is increasing day by day

FINANCIAL REPORT:

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 This company is financially very strong. It is due to the strong finances, the company is still
surviving the ups and down of the business world. The financial report of Coca Cola Company of the
year 2001 and 2000 along with the percentage change is as follows.

(Table)

Year Ended December 31,

(In millions except per share data, ratios and growth rates)

2010 2011 Percentage

change

Net operating revenues 20,092 19,889 1%

Operating income 5,352 3,691 45%

Net income 3,969 2,177 82%

Net income per share (basic) 1.601 0.882 82%

Net income per share (diluted) 1.601 0.882 82%
Net cash provided by operating activities 4,110 3,585 15%
Business reinvestment (963) (779) 24%

Dividends paid (1,791) (1,685) 6%

Share repurchase activity (277) (133) 108%
Free cash flow 3,147 2,806 12%
-
Return on capital 26.6% 16.2%
-
Return on common equity 38.5% 23.1%
Unit case sales (in billions)
International operations 12.5 11.9 5%

North America operations 5.3 5.2 2%

Worldwide 17.8 17.1 4%

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2002 basic and diluted net income per share includes a non-cash gain of $.02 per share after taxes,
which was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity
investors of this company.

2002 basic and diluted net income per share includes the following charges:
 $.24 per share after income taxes related to an organizational Realignment.
 $.19 per share after income taxes related to the Company's portion of charges recorded by the
investors of the company.
 $.16 per share after income taxes related to the impairment of certain bottling, manufacturing
and intangible assets.
 $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.
 $.01 per share after income taxes related to incremental marketing expenses in Central
Europe.

These charges are partially offset by a gain of $.05 per share after income taxes related to the merger
of Coca-Cola Beverages plc and Hellenic Bottling Company S.A. and $.04 per share after income
taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning
strategies.

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 COMPANY STATISTICS;

The statistics of this company is impressive. Since it is operating through out the world that is why
the number of employees and the bottling equipments is highest among the other bottling companies.
There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics
of 2002. This is because; Coca Cola Company is increasing its volume day by day. The expansion of
this company, which shows the success of Coca Cola brands, results in the percentage change in the
statistics of the two years. The statistics is as follows.

(Table)

2011ª 2010

Equivalent cases 4.2 billion 3.8 billion

Bottle and cans 87% 87%
Fountain 13% 13%
Employees 72,000 67,000
Vehicles 54,000 52,000
Cold drink equipments 2.4 million 2.3 million
Facilities
Production only 25 25
Distribution 385 361
Combination 53 50
Total 463 436
Percent of North America population coverage 80% 72%
Number of States of Operation 46 46
Bottle and can equivalent case package distribution
Cans 44% 45%
Non-refillable bottles 52% 51%
Refillable bottles 4% 4%
Capital structure
Net debt to total capital ratio 63% 59%
EBITDA interest coverage 3 3
Weighted average cost of debt 6.3% 6.8%
Key Statistics
Constant territory bottle and can volume growth 3% ½%
Bottle and can net revenues per case change Flat 2%
Bottle and can cost of sales per physical case change 1 ½%
Reported EBITDA (in billions) $1.95 $2.39

Reported EBITDA change (18)% 9%

Coverage of North American Can/bottle volume 83% 74%

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BITDA is the Earnings before interest, taxes, depreciation, and amortization, and other
non-operating items.

 Net Debt is the Long-term debt plus current portion of long-term debt less cash
and marketable securities.

 Equivalent Case or Unit Case is the physical case and fountain gallons
converted to a standard unit of measure defined as 24 eight-ounce servings or
192 ounces per equivalent case sold by Coca-Cola Enterprises.

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 PRODUCTS:

There are different brands of the Coca Cola Company, which are currently in use through out the
world. This company not only deals in the carbonated drinks but also other drinks. While launching
its product, the marketing team considers the culture of the country.

Major brands of coca cola

 Coke

 Sprite

 Fanta

 Diet coke

 Coke classic

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 The over all volume of this company is as follows.

(Figure)

The commitment of the company is to devote resources to water only in markets where it expects
profitable growth. This strategy has paid dividends. The company has successfully applied it’s
approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in Japan,
Bonaqua in Russia and Kinley in India. Backed by a strong network of bottling partners through out
the United States, Dasani became the nation's fastest-growing water brand. In Eurasia, the entire
Turkuaz brand team worked together to launch Turkey's first purified water brand. This year, Coca-
Cola Company also successfully energized a major piece of its beverage strategy—water. By the end
of 2001, it’s bottled water volume exceeded 570 million unit cases, making it the second biggest
contributor to the growth of the company after carbonated soft drinks. Three of the water brands,
Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year.

In 2001and 2002, the company has also made good progress in coffees and teas. Beverage Partners
Worldwide, the renewed and strengthened marketing partnership with Nestlé S.A., began operations
in 2001. This partnership combines Nestlé's knowledge in life science, research and development
with the expertise of Coca Cola Company in brand building and distribution.

At the same time, the company grew Georgia coffee in Japan by 3 percent

26
through award-winning marketing in a category that was flat for the year. Also in Japan—where The
Coca-Cola Company is the leader in the total tea category, the second-largest category in the non-
alcoholic ready-to-drink segment—it launched Marocha Green Tea. With sales of 46 million unit
cases for the year, Marocha Green Tea is the fastest-growing product in the fastest-growing category:
green tea. The popularity of Marocha is also recognized by the industry with a leading trade journal
naming Marocha the most popular new food and beverage product of the year.

Among the soft drinks Fanta and Sprite become successful along with the major brand Coca Cola
and Diet Coke. In key markets, the company has created new packaging sizes to satisfy consumer
demands.

Increasingly, Mexican families have lunch together at home. The average Mexican household drinks
two-and-a-half liters or more of soft drinks during that break, while a two-liter bottle was the largest
available package. So the company introduced a convenient 2-½ liter bottle to select regions,
contributing to the sale of nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger
bottle will complete its nationwide rollout in 2002. In China, Coca-Cola is an integral part of holiday
celebrations and the family get-togethers that accompany such events. Through an intense focus on
Coca-Cola, innovation and new beverages, it has achieved volume growth of 10 percent in 2001. In
China, sales of Coca-Cola increased by 6 percent. In the United States, recognizing that consumers
often enjoy their diet Coke with a slice of lemon, the company "bottled" the concept. The result—
diet Coke with lemon—contributed to volume growth of 4 percent for the number-one diet.

Soft drink in North America: diet Coke. The company increased its two largest bottle sizes during
the 2001 holidays, and festival packaging helped drive a 6 percent volume increase for Coca-Cola.
The packaging innovations do not just involve resizing. The company has also responded to
consumers' changing fashion styles with new bottles.

With brands such as Minute Maid, Hi-C, Simply Orange and Disney juices and juice drinks in the
United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.

27
This year, the company re-launched its global sports-drink business, investing in new products,
packaging, positioning and marketing. The results speak for themselves: it’s global sports drinks, led
by Powerade and Aquarius, grew by 13 percent in 2002, nearly double the growth rate of the
worldwide sports-drink category.

MARKETING MIX OF COCA-COLA

Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is divided
up into 4 parts; product, price, promotions and place.

1. Product:

The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging.
On the product-service continuum we see that a soft drink provides little service, apart from
the convenience. Soft drinks satisfy the need of thirst. However, people are always
different, some want more and others want less. Therefore Coca-Cola has made allowances
for that by providing many sizes. We also have particular tastes, and again they have
provided several options. So, although thirst is what is needed to be satisfied and that is the
core benefit, we are receiving other benefits in the taste and size. Coca-Cola has developed
several different flavours and sizes as mentioned above, but also several brands such as
Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use
of the market to maximize sales.

The product is convenient, that is - bought frequently, immediately, and with a minimum of
comparison and buying effort.The appearance of the product is eye catching with the bright
red colour. It has a uniquely designed bottle shape that fits in your hand better, and creates a
nicer & more futuristic look.

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The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of
the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack or leak,
and are not too heavy to casually walk around with. The cans are also light and safe.

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 Product Lifecycle of Coke:

Product life cycle has four phases

1. Introduction
2. Growth
3. Maturity
4. Decline.

The markets where Coke is a dominant player are United States of America, Europe and Asia,
Africa. There is a vast difference in terms of above given phases for example, in U.S.A & Europe it
has reached maturity stage where it can’t expand its market more but if we consider Asia, it is still in
the growth phase.

Coca-Cola is currently going through the maturity stage in Western countires. This maturity stage
lasts longer than all other stages. Management has to pay special attention to products during this
stage of the product life-cycle. During the maturity stage, products usually go through a slowdown in
sales growth. According to Coca-Cola's 2001 annual report, sales have increased by 1.02% compared
to last year. This percentage has no comparison to the high level of growth Coca-Cola enjoyed
during its growth stage. To add a little variation Coca-Cola took the Coca-Cola Classic and added
variations to it, including Cherry Coke, Vanilla Coke and Diet Coke. Also Coca-Cola went from 6-
oz. glass bottles to 8-oz. cans to plastic liter bottles, all helping increase consumption.

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 COCA-COLA

2. Price:

Like any company who has successfully endured a century of existence, Coca- Cola has had
to remain tremendously fluent with their pricing strategy. They have had the privilege of a
worthy competitor constantly driving them to be smarter, faster, and better. A quote from
Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca-Cola
Company didn't exist, we'd pray for someone to invent them." states it simply. The
relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to
appreciate.

Throughout the years Coca-Cola has made many pricing decisions but one might say that
their ultimate goal has always been to maximize shareholder value. As cola consumption has
decreased in the US colas have come to realize the untapped international market. In 2003
both Coke and Pepsi had a solid presence in India and had each introduced a 300mL bottle.

31
In order to grab market share Pepsi began to drop prices (even with summer approaching,
which was contrary to policy in America). Shortly thereafter, Coca-Cola decided to drop their
prices slightly, but focused on the reduced price point of their 200mL container. Coca- Cola
planned to use the lower price point to penetrate new cities that were especially price
sensitive. The carbonated soft drink market in India is nearly 37% of the total beverage
market there.

This low price strategy was not unfamiliar to Coca-Cola. Both Coke & Pepsi utilized a low
price strategy in the early 1990s. After annihilating the low price store brands, Coke chose to
reposition itself as a "Premium" brand and then raise prices.

Coca-Cola products would appear, on the shelf, to have the most expensive range of soft
drinks common to supermarkets, at almost double the cost of no name brands. This can be
for several reasons apart from just to cover the extra costs of promotions, for which no name
brands do without. It creates consumer perceptions and values. When people buy Coca-Cola
they are not just buying the beverage but also the image that goes with it, therefore to have
the price higher reiterates the fact that the product is of a better quality than the rest and that
the consumer is not cheap. This is known as value-based pricing and is used by many other
industries in attracting consumers.

In India, the average income of a rural worker is Rs.500 a month. Coca Cola launched a 200
ml bottle for just Rs.5, an affordable amount on the pockets of the rural audience.

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 3. Place:

Coca-Cola entered foreign markets in various ways. The most common modes of entry are
direct exporting, licensing and franchising.

Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise
to overseas distributors and companies. Other than exporting, the company markets
internationally by licensing bottlers around the world and supplying them with the syrup
needed to produce the product.

There are different types of franchising. The type that is used by Coca-Cola Company is
manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but
the only difference is that the finished products are sold to the retailers in local market.

Coca Cola has managed their company’s marketing and sales strategy within channels. Have
you ever considered the significance of the Coke vending machine to the success and
profitability of the Coca Cola company? This channel is direct to consumer and vending
machines often have little to no competition and no trade or price promotions.

The Coke Company operates three primary delivery systems for its business channels:

 Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club
stores;
 For smaller channels Coke does advanced sale delivery for convenience stores, drug
stores, small supermarkets and on-premise fountain accounts.
 Full service delivery for its full service vending customers.

Key Channel Listing

 Supermarkets
 Convenience Stores
 Fast Food

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  Petroleum Retailers
 Chain Drug Stores
 Hotels/Motels/Resorts
 Mass Merchandisers
 U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and DECA

In 2006, the Company began changing its delivery method for its route delivery system.
Historically, the Company loaded its trucks at a warehouse with products the route delivery
employee would deliver. The delivery employee was responsible for pulling the required
products off a side load truck at each customer location to fill the customer's order. Coke
began using a new CooLift® delivery system in 2006 in a portion of the Company's territory
which involves pre-building orders in the warehouse on a small pallet the delivery employee
can roll off a truck directly into the customer's location. The CooLift® delivery system
involves the use of a rear loading truck rather than a conventional side loading truck. Coke
will continue to rollout this program over the next several years since they expect such
significant savings and more efficient deliverys. This is a huge investment for Coke.

The company works through independent bottlers of Coke. They work in coordination with
the Coke company which produces the 'secret formula concentrate' and ships to the
distributors and bottlers for final processing and packaging prior to shipment to the stores.

Coca-Cola floods all possible retailing stores in satisfying the third part, place. In
supermarkets and convenient stores, Coca-Cola products are always easy to identify, and
usually make up the greater proportion of options to buy. This increases their market
exposure through effective use of the retailers. For a FMCG it is important that they can be
found and purchased easily. With many automatic Can machines located in many sports
stadiums and shopping malls, you don't even need to go to a store to buy a drink. This
greatly enhances the speed of purchase.

The company produces concentrate, which is then sold to various licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the
34
 company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-
Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-
Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western
Europe and food service distributors.

The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers
throughout the world who hold Coca-Cola franchises for one or more geographical areas.
The bottlers produce the final drink by mixing the syrup with filtered water and sugar (or
artificial sweeteners) and then carbonate it before filling it into cans and bottles, which the
bottlers then sell and distribute to retail stores, vending machines, restaurants and food
service distributors.

The Coca-Cola Company owns minority shares in some of its largest franchises, like Coca-
Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and
Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in
the world. Since independent bottlers add sugar and sweeteners, the sweetness of the drink
differs in various parts of the world, to cater for local tastes.

STRATEGIC PLANNING

In the year 2002, the company had a great success, as the strategy worked which resulted in making
Coca Cola Company the world’s leading company. In 2001, company accomplished the crust of it’s
strategy as

 Worldwide volume increased by 4 percent with strong international growth of 5 percent and
clear signs that our North American business is growing solidly and predictable.

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  Earnings per share grew by 82 percent, as we delivered on our commitment to create volume
growth while aggressively
 Return on common equity grew from 23 percent in 2000 to 38 percent this year.
 Return on capital increased from 16 percent in 2000 to 27 percent in 2001.
 The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a
clear indication of its underlying financial strength.

The strategy for the future of the company is very straightforward. The marketing strategy for the
year 2002 is as follows,

 Accelerate carbonated soft-drink growth, led by Coca-Cola.

 Selectively broaden the family of beverage brands to drive profitable growth.
 Grow system profitability and capability together with our bottling partners.
 Serve customers with creativity and consistency to generate growth across all channels.
 Direct investments to highest potential areas across markets.
 Drive efficiency and cost-effectiveness everywhere.

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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 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
India 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
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%.

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 MAJOR CUSTOMERS NEED

First of all the majority don’t care that what they are going to have. In other words, they don’t care
before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate between these
two brands in order to their tastes.
Consumers basically drink what they get.
They believe on “WHAT COLD THEY SOLD”
Consumer’s availability in brands is basically works like:
Push availability
Pull consumer’s demand.

MAJOR COMPETITORS

Consumers firstly decide that they are going to have a soft drink. Then they compete brands with
each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major
competitor of Coke is Pepsi.
When they motivate to any other brand or on Coke it’s in instinct basically that based on messages
derive certain feelings.
But Coca Cola thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and
all juices, even they take water and tea as their competitors.

STRATEGIES OF QUALITY

After Micro and macro analysis Brand “coke” is primarily role

1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better connection with the public.
These are the “key consumption”.

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 THREATS FROM COMPETITORS

Threats are well planned. Price is the major threat. When price goes certain beyond the exact price
whether come down or go higher its effects the consumption of soft drink.
Because when the price go higher people go for the substitute of “coke” i.e. Pepsi.
And when price goes down they think that there is must be some thing wrong in it.
In short it all depends on customer’s perception.

TARGETS THAT WOULD LIKE TO ATTAIN

Every organization runs on the bases of profit maximization so Coke is also looking for a high profit
margin.

There are three major ways of making money

 Over night profit

 Windfall profit
 Ethical and un-ethical ways

Over Night Profits

They could be over night profit that is for the number 1 brand for the year. This could be got my
increasing sales volume

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 Windfall Profit

Can be windfall profit. They are the extras profit. When the consumption the consumption is on
boom. So, there is different kind of profits.

Ethical And Unethical Ways

Profit can also get through ethical and unethical ways. They believe on this quote
“ Every thing is fare in love and war”.

Some profits stays for some time like “over night profits” and some just come and go like “wind fall
profits”. And they can also get profit through different approaches.

EXPANDING TARGET MARKET

In last 2 years Coke has come back in aggressive manner.

 Consumer has choice

 Attractive brand name
 Brand differentiating

Consumer Has Got Choice

Now the consumer has got choice. Because now they know the name of another big brand, though
coke is the 2nd best name but it can get a better position after some time

Attractive Brand Name

Now the consumers know the Name of Coke, because Coke is the name, which is the most popular
after the word “ok”. So people can better differentiate brands with each other.
40
 Brand Differentiation

Now different companies have got different brand names. So, people can distinguish between
brands. Two major brands “coke” and “Pepsi” also have brand names.

Coca Cola’s Brand

Coca cola is “US” brand. Because they believe in the togetherness, being people together and friends
are being together. Coca Cola strongly believes that Indiai temperament is “US” not “ME”

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

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 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.

How to take part in energetic festivals?

Coke is already taking part in the festival like “Basant” since last 3 years. Coke offers different
attractive things in their festival and through this Coke gained high profit and consumption of coke
increased on these occasions.

And this year in this year 2002 people were anxiously waiting that what interesting thing coke is
going to offer.

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 MARKETING STRATEGY

Our local marketing strategy enables Coke to listen to all the voices around the world asking for
beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a
reflection of who they are, where they live, how they work and play, and how they relax and
recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in
Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled
water after a run together, we're there for you. We are determined not only to make great drinks, but
also to contribute to communities around the world through our commitments to education, health,
wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business
decisions to improve the quality of life in the communities in which we do business. It's a special
thing to have billions of friends around the world, and we never forget it.

MARKET POSITIONING

Product Range

The total range of Coca Cola company in India includes:

 Coke.
 Sprite.
 Fanta.
 Diet Coke.

And company offers their products in different bottle sizes these includes:

 SSRB (standers size returnable bottle)

 LRB (litter returnable bottle)
 NRB (no return bottle) or disposable bottle
 PET 1.5 (1.5 litter plastic bottle)
 CANS (tin pack 330 ml)
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 Packing

Coca cola products are available in different packing

 24 regular bottle shell
 6 bottle pack for 1.5 pets
 12 bottles in a pack for disposable bottle

PRICE STRATEGY

Trade Promotion

Coca cola company gives incentives to middle men or retailers in way a that they offer them free
samples and free empty bottles, by this these retailers and middle man push their product in the
market. And that’s why coca cola seen more in the market. And they have a good sale in the market
because according to the expert which product seen more in the market that sells more.
“Seen as sold”

They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are
called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and free bottles and
some time cash incentives.

Different Price In Different Seasons

Some times Coca Cola Company change their product prices according to the season. Summer is
supposed to be a good season for beverage industry in India.
So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the
prices of their pet bottles or 1 litter glass bottle.

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 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 bicycles, 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

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 Direct Selling

In direct selling they supply their products in shops by using their own transports. They have almost
450 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 India 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:
 Vizi cooler
 Freezers
 Display racks
 Free empty bottles and shells for bottles

ADVERTISEMENT

Coca cola company use different mediums

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

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 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.

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.

EXPECTATIONS FOR THE COMING YEAR

Every thing starts from the attitude of consumer’s behavior. And the basic key to attract the
consumers is to throw the “money away”.

And positive feeling felling with the brand, which they used to have Coke wants to advertise their
products heavily in the coming year. And it will take the 10% of their profits. And when we take it as
a global level it is $ I billion.

Coming year is the challenging year for the industry of Coke. They have to take lots of decisions that
how to increase the production and where they have to spend money.

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For gaining success in coming year they have to have some important things like:
1. Loyal consumers are important for company’s success.

2. Workers should be the brand centric not the promotion centric.

3. They should know how much to for the brand activities.

4. They should also know that how much to do with the promotion activities for brand.

HOW COKE DETERMINE THE YEARLY BUDGET

Coke determines its yearly budget by the

 Sales volume
 Profitability
 Target volume

Sales Volume

Coke determines its yearly budget through the sales volume. They first concentrate on the thing is
“what is the condition of their sales?” if the condition is good of their sales then they definitely
increase their production and sales volume. Otherwise they concentrate on their old strategies.

Profitability:

The second thing through which they determines budget is the “profit” .if they r getting profits with
the high margin, then they definitely want to increase their profits in the next coming year. Every
organization runs on the basis of getting high profits.
No organization wants to face Loss in their business. To get profit is the first priority of the Coke.
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Target Volume:

To run the business every industry has some targets, which they want to achieve in a specific time
period. If industry achieves those goals in that period then for the coming year it increases the
volume of the target.
So Coke Follow the same thing it has also some goals and targets to achieve in the given time
period. When they succeed to achieve that target then they increase their target volume in the next
year.

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 SALES PROMOTION ACTIVITIES

Coca-Cola Cricket

Cricket the most sought after; watched & played game in India .the game of cricket has been owned
by various brands in the industry for the promotion of their products over a period of time. It has
ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the
beverage industry.

The competition has become tougher & tougher as the time has progressed.

Coca-Cola signed a sponsorship agreement with eight of India’s National cricket players. Coca-Cola
realizing the fact that cricket is a very strong element by which it can reach it consumers & masses
invested in the opportunity and launched a massive campaign on mass media showing all these
cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed
three TV commercials & four testimonial ads with the player & ran them on the national net work
during various cricket matches.

These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements
across the board. This campaign helped Coca-Cola to establish its association with the game & the
player.

Coca-Cola Concerts

Abrar-ul-haq’s distinct style, lyrics & songs have made him an instant hit among the masses in India.
His enormous popularity in the country & abroad is supported by Coca-Cola’s commitment towards
providing healthy & fun-filled entertainment for the youth of India. Coca-Cola brought Abrar to his
fans through holding concerts & featuring Abrar in a much-appreciated TVC & MMT featured
throughout the country.

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The TVC campaign focused on the hectic lifestyle of a pop star who found respite & relief through
Coca-Cola in short moments that he had to himself during a concert. Coca-Cola’s brand positioning
of providing deep down

refreshment for the body, soul & mind were captured accurately in the TVC & depicted aptly how
the drink completes the moment for Abrar.

Coca-Cola Food Mela

With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of
Karachi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling city’s
map. The promotion saw the avid families & friends enjoying the delicacies at the restaurants; all
resiliently upholding the Coca-Cola identity.

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 Coca-Cola Basant Festival

In February the month of basant the parks & horticulture authority in Lahore nominated Coca-Cola
the official sponsor of the basant festival .Coca-Cola added to the carnival atmosphere by making the
festival free to enter & decorating all main roads in Lahore with illuminated kites. Coca-Cola also
hosted a concert of pop idol Abrar-ul-haq, had children’s parade & held the Coca-Cola kite flying
championship during the basant festival. Now “where there is basant there is Coca-Cola”, it has been
impossible to envisage basant without Coca-Cola. Coca-Cola give the more refreshing flavor to the
colors of basant by adding more life to the festival, giving the consumer a unique experience which
they had never tasted before.

Coca-Cola GO-RED

Quenching the thirst of motorist, pedestrians & passerby’s during Lahore’s hottest summer season,
Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve & refresh” on the
spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement campaign
the “GO-RED” stall, served well to promote the Coca-Cola industry.

Coca-Cola Party in a Park

In June 2000, Coca-Cola created an experiential musical evening in Lahore, where Junoon
performed. This program was recorded and one-hour program shown in the national TV for free.10
million households saw Coca-Cola ‘Party in a Park’ while 10 thousand people attended the event.

Coca-Cola Ramzan Campaign

A very special occasion for the people of India Ramzan saw another very special Coca-Cola’s
promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off
promotion. The emphasis on enjoying Coca-Cola at “Iftar” with friends & family.

Coca-Cola Wonder of the World Promotion

In July 2000, Coca-Cola set the stage of the grand UTC promotion. Coca-Cola went ahead with the
idea of giving consumer chances to win fabulous, magical “dream vacation” to numerous “wonder
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destination” throughout the world on every purchase of a 250 ml RGB bottle of Coca-Cola, Sprite, &
Fanta.The promotion gave consumers a chance to win free drink, a trip to PARIS, HOLLYWOOD,
NEWYORK, SINGAPORE & CAIRO along with airfare & four nights free stay in these dream
lands. The promotion saw avid consumer collecting Coca-Cola ‘Crown caps’ & sparked a keen
response from the public , rendering an outstanding testimonial campaign in the second phase,
highlighting the winners over whelmed in the magical delight of their favorite beverage Coca-Cola.

Coca-Cola & Nokia

In August 2001, the new under-the-crown promotion “Nikla Kiya?”(What have u won) was
launched in collaboration with Chimera Nokia.The promotion gave consumer a chance to win
thousand’s of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB
bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of promotion was the “Caught Red
Handed” campaign. Branded Coca-Cola with ‘caught red handed’ team in them went to Lahore &
Karachi for three days, with target that anyone being caught drinking Coca-Cola will be awarded a
nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win free supply of
Coca-Cola. Caught red handed become a huge success among the masses as it was one to one
interaction between the Coca-Cola brand & the consumers. This activity helped billed confidence
and brand loyalty among core consumers.

Coca Cola TV Mazza

The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people are getting
television sets of different sizes. These days this scheme is very popular among the people.

Coca-Cola & Mc Donald’s

Coca-Cola & key account of MC Donald’s launched the “we go together” joint promotion to
reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion

53
kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donald’s restaurants along
with a special offer for coke & fries.

SWOT ANALYSIS

Strengths:

Coca-Cola has been a complex part of American culture for over a century. The product's
image is loaded with over-romanticizing, and this is an image many people have taken deeply
to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia.
This extremely recognizable branding is one of Coca-Cola's greatest strengths.

Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to
conduct business on a global scale while at the same time maintain a local approach. The
bottling companies are locally owned and operated by independent business people who are
authorized to sell products of the Coca-Cola Company. Because Coke does not have outright
ownership of its bottling network, its main source of revenue is the sale of concentrate to its
bottlers.

A company like Coca-Cola has much internal and external strength, but when launching a
product of this sort, they begin to run into many internal and external weaknesses as well. As
far as internal strengths go, Coca-Cola itself is a strong company to say the least. Not only
are they a $23 billion company, but in 200 nations, Coke sells about 400 drink brands,
including four of the top five sellers right now. They own 36% of the largest Coke bottler in
the world, Coca-Cola Enterprises, which staffs facilities all over the world.

Although Coke has never produced an organic product, they do own Odwalla, which is a
natural juice company. This product would not be marketed as an Odwalla brand, but
Odwalla's knowledge of natural juice making will be a great strength for Coca-Cola.

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Organic products are on the rise, with 70% of Americans having purchased something
organic at least once. While organics are becoming more and more popular, there still are not
many well-known organic companies; therefore, Coca-Cola will not have much competition.

Perhaps one of their biggest strengths is the brand loyalty their customers have. When this
product is launched, avid Coke drinkers will choose this organic fruit juice or soda over any
other competitor simply because it's a Coca-Cola product and they trust it.

Weaknesses:

Although domestic businesses as well as many international markets are thriving, Coca-Cola
has recently reported some "declines in unit case volumes in Indonesia and Thailand due to
reduced consumer purchasing power." According to an article in Fortune magazine, "In
Japan, unit case sales fell 3% in the second quarter because while Japan generates around 5%
of worldwide volume, it contributes three times as much to profits. Latin America, Southeast
Asia, and Japan account for about 35% of Coke's volume and none of these markets are
performing to expectation.

Coca-Cola on the other side has effects on the teeth's which is an issue for health care. It also
has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being
addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an
effect on your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's
brand name is known well throughout 94% of the world today. Packaging changes have also
affected sales and industry positioning, but in general, the public has tended not to be
affected by new products. Coca-Cola's bottling system also allows the company to take

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 advantage of infinite growth opportunities around the world. This strategy gives Coke the
opportunity to service a large geographic, diverse, area.

Threats:

Currently, the threat of new viable competitors in the carbonated soft drink industry is not
very substantial. The threat of substitutes, however, is a very real threat. The soft drink
industry is very strong, but consumers are not necessarily married to it.

Possible substitutes that continuously put pressure on both Pepsi and Coke include tea,
coffee, juices, milk, and hot chocolate.

Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market, the
changing health-consciousness of the market could have a serious affect. Of course, both
Coke and Pepsi have already diversified into these markets, allowing them to have further
significant market shares and offset any losses incurred due to fluctuations in the market.

Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi and
Coke has produced a very slow moving industry in which management must continuously respond to
the changing attitudes and demands of their consumers or face losing market share to the
competition. Furthermore, consumers can easily switch to other beverages with little cost or
consequence

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 CHAPTER 3

RESEARCH METHADOLOGY

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 RESEARCH METHODOLOGY

Research Type:-

The research done was Descriptive in nature and Analysis based.

Sampling Technique:-

Convenience sampling was applied for selection of sample peoples.

Size of Sample:-

This refers the number of unit to be selected from the finite universe to Constitute a sample size. The
size of my survey sample was 50 selected peoples.

Sample unit:-

A single customer was representing one sample unit.

Area of Research:-

Ghaziabad district and Delhi and NCR region

Nature of Data:-

In this project report, the data is collected through primary data and Secondary data sources.

Method Opted for data collection:-

Primary data collection:-

Primary data was collected through questionnaire. I went to different household of Ghaziabad and
delhi for the purpose of questionnaire filling. Generally I went in evening time so that I met my
target respondent who were of service class.
Secondary data collection:-
For collection of secondary data I used websites and some books of Human resource management
and research methodology.
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 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

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 DATA ANALYSIS

1. Have you ever tried the product (Coca-Cola)?

Out of the 30 people we surveyed, all of them said they had tried Coca-Cola atleast once.
This explains the brand awareness of Coca-Cola.

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 2. Gender

Out of the 30 respondents, there were 18 men & 12 women.

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 3. Age groups

As represented in the chart, majority of the respondents were in the age group of 20-35 years,
the least of the lot being 2 kids who were also asked to participate in the survey.

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 4. Do you enjoy the product (Coca-Cola)?

From the analysis, it was found that majority of 77% (23 people) respondents said they
enjoyed drinking Coca-Cola as against 23% (7 people) who said they preferred other drinks.

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 5. What brand would you say is more popular among the public?

a) Coca-Cola
b) Pepsi
c) Other

As seen in the chart, out of 30 people, 17 respondents said, in their opinion, Coca-Cola was
more popular while 11 respondents said they preferred Pepsi as a popular brand.

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 6. Do you enjoy Coca-Cola’s advertisements on TV?

The chart represents that a majority of people thought the Advertisements were good enough & they
like what they see.

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7. Do you think the price for a can of Coca Cola is cheap or expensive?

As seen in the above figure, a majority of 23 people out of the 30

respondents thought that the Coca-Cola Cans are slightly overpriced with a
few people also rating it as expensive.

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8. If you were to see the Coca-Cola logo somewhere would
you recognize it?

It is understood from the fact that the Logo of the Company still has its image in the
minds of the people with all the respondents saying they would recognize the “Coca-
Cola” Logo.

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 9. How often do you buy the product?

As it can be seen in the figure, it was concluded that majority of the respondents bought the
product quite frequently. This shows the brand loyalty of the customers towards Coca-Cola.

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 10. Where do you buy Coca-Csola products the most?

As seen in the above chart, customers usually preferred to buy Coca-cola in restaurants like
KFC, Mc Donalds, Sub-Way etc. The second largest option was General stores stocking
Coca-Cola.

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 LIMITATIONS

 Time Constraints:

A two months time limits us to understand completely the market requirements and all round
working perspective of the company.

 Position and Authentication Constraints:

With no authority or position it was sometimes difficult to convince the customer in front as
summer trainee holds no responsibilities in the eyes of corporate.

 No Customer Interaction

It is because the customers of Hindustan Coca-Cola Beveragws Private Limited are big
organisations, these organisations are situated outside Hathras. So , there is no interection
with customers of Hindustan Coca-Cola Beveragws Private Limited.

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 CHAPTER 5

RECOMMENDATION AND SUGGESTION

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 RECOMMENDATIONS

After completing our project we have concluded some recommendation for the coca cola company,
which are following.

 Coca Cola Company should try to emphasis more on providing their infrastructure in the
market to facilitate their customers.
 Marketing team should try to increase the availability of Coke in rural areas.
 They should also focus the old people.

Conclusion Of Political Analysis:

As far as the above table is concerned it could be seen that there are very little chances of “political
variables” to effect the coke’s production and selling behavior.
In the “political variables” most of the things are related to Governmental activities. So, they don’t
leave any good or bad impact in the Industry of coke.

And there are some exceptional things like: “environmental protection laws” they some what effect
the industry of Coke. From last two years Government is going to be really very much conscious
about the environment. But after making the adjustments in plants and applying the proper way of
wastage the chances of being affected by the “protection laws” are going to be diminished. So it
impact good for the Coke’s reputation. And the second thing in political variables which effects
Coke is “elections & military take over” Because in the days of elections and marshal law’s
condition the countries production in any field is declined. So it affects slightly the revolution of
Coke.

So “political conditions” are over all leave neutral effects on coke’s industry.

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 SUGGESTIONS

In the report we have seen the graph of order booking targets and sales turnover. In the graph of

order booking we have seen that the order for our product is increasing year. It means that with the

increase of order to target. We have efficiency of the organisation; we have to improve on certain

points:

 Cost efficiency:

To get the achievement of cost efficiency we have to keep certain points in our mind they are

resale of scraps, inventory management, work distribution.

 Profit generation:

In the SWOT analysis we have seen there is a great opportunity products, these can be

turnkey for the company. The company should try to work on export. They should lay more

emphasis on export.

 Improving technology:

There is no doubt that the product of company is good. But from time to time the regular
improvement of the technology is required. It improves the quality of the product as well as
saves the time.

 Becoming a global player:

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With the last dealings we can conclude that the company had satisfy there maximum
customers. After those dealings the company should try to get a good name in India as well
as in international market.

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 CHAPTER 6

CONCLUSION

75
 CONCLUSION

 It was observed that Coca-Cola has been perceived quite positively as it has been projected.
People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a
product is launched, avid Coke drinkers choose this soda over any other competitor simply
because it's a Coca-Cola product and they trust it.

 Although Coke has been into controversies, people still prefer to stay loyal to the Brand with
Coca-Cola being termed as a more popular brand than Pepsi.

 Coca-Cola products would appear, on the shelf, to have the most expensive range of soft
drinks common to supermarkets, at almost double the cost of no name brands. This can be
for several reasons apart from just to cover the extra costs of promotions, for which no name
brands do without. When people buy Coca-Cola they are not just buying the beverage but
also the image that goes with it, therefore to have the price higher reiterates the fact that the
product is of a better quality than the rest and that the consumer is not cheap.

 In supermarkets and convenience stores Coca-Cola has their own fridge which contains only
their products. There is little personal selling, but that is made up for in public relations and
corporate image. Coca-Cola sponsors a lot of events including sports and recreational
activities.

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.

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 CONCLUSION OF SOCIAL ANALYSIS

EDUCATION
The Coca-Cola Company has always believed that education is a powerful force in improving the
quality of life and creating opportunity for people and their families around the world.

The Coca-Cola Company is committed to helping people make their dreams come true. All over the
world, we are involved in innovative programs that give hard-working, Knowledge-hungry students
books, supplies, places to study and scholarships. From youth in Brazil to first generation scholars,
educational programs in local communities are our priority.

ENVIRONMENT

A large part or our relationship with the world around us is our relationship with the physical world.
While we have always sought to be sensitive to the environment, we must use our significant
resources and capabilities to provide active leadership on environmental issues, particularly those
relevant to our business. We want the world we share to be clean and beautiful. We are always
innovating to bring you different delicious beverages. This same spirit of innovation comes alive in
our environment programs. We’re committed to preserving our environment, from use of more than
$ 2 billion (U.S) a year in recycling content and suppliers, and environment Management initiatives,
down to very local neighborhood collection and beautification efforts. Here’s a sample of what we’re
doing in different communities around the world regarding the conservation of water and natural
resources, climate changes, waste environment education.

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 COMMUNITY INVOLVEMENT:

In 2000, when eastern India suffered its worst droughts, The Coca-Cola system initiated a famine-
relief program to help victims and was the first private-sector company to assist.

The Coca-Cola system in India initiated a voluntary Hajj program that allows one employee from
each plant, selected through a draw, to be sent on the Holy Pilgrimage to Mecca at the Company’s
expense.

TECHNOLOGICAL VARIABLES

Technological variables Strongly Some what No Some what Strongly

Effected Effected Effect Effected Effected
++ + +- - --
Have business YES
innovations effectively
promoted your business
Has the government’s YES
regulations ever hindered
in importing technical
equipment
Does Coke help in YES
promoting paperless
environment

Conclusion Of Technological Analysis

Of course business innovation leaves highly good impacts in the business of Coke. As coke use more
advance technology in its production process. It will resulted in increment of their production
through out the country.

As far as the “governmental hindrances” are concerned the impacts highly bad on coke’s
production. Ever year when budget in announced government taxes rates always shoot up. This
approach of government decreases the profit margin of Coke.

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As the coke helping in promoting “paperless environment” .it impacts good, because computers are
the basic need of any person now a days. And though it’s a big industry so it is promoting the trend
of paperless environment. And it is giving the way of other industries to come to new technologies
and into a new world of business.

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 ANNEXURE

QUESTIONNAIRE

1. Have you ever tried the product (Coca-Cola)?

a) Yes
b) No

2. Gender

a) Male
b) Female

3. How old are you?

a) Below 10
b) 10-19
c) 20-35
d) 36-50
e) 51 & Above

4. Do you enjoy the product?

a) Yes
b) No
c) It's not bad

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5. What brand would you say is more popular among the public?

d) Coca-Cola
e) Pepsi
f) Other

6. Do you enjoy Coca Colas advertisements on TV?

a) I really like them

b) They good but nothing special
c) Not bad
d) I don't enjoy them

7. Do you think the price for a can of Coca Cola is cheap or expensive?

a) Cheap
b) Slightly over priced
c) Expensive

8. If you were to see the Coca Cola logo somewhere would you recognize it?

a) Yes
b) No

9. How often do you buy the product?

a) Never
b) Once/few times a year

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 c) Few times a month
d) Few times a week
e) Everyday

10. Where do you buy Coca-Cola products the most?

a) Super Markets
b) General stores
c) Restaurants (McDonald's, Subway, KFC etc)

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 BIBLIOGRAPHY

Bibliography refers to the sources through which information has been retrieved in my project
development:
Books & Magzines:
 Marketing Management By ( Philip Kotler )
 Economic Times
 Annual Report of coca-cola company.
Websites:
 www.google.com
 www.coca-colaindia.com
 www.altavista.com

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