SUMMER TRANNING PROJECT REPORT

ON

“MARKETING STRATEGIES OF COCA COLA”

Partial fulfillment of the requirement for the award of the degree of

“Bachelor in Business Administration” (2015-2018)

Submitted to: Submitted By:

Mr. Anmol Poddar HERSHITA VAID

(Asst. Professor ) 35490001715

Delhi Institute of Rural Development, Nangli Poona

(Affiliated to Guru Gobind Singh Indraprastha University)
 INDEX

S.NO. CONTENTS PAGE NO.

1. Introduction 1-15

2. Literature review 16-17

3. Company profile 18-27

4. Research Methodology 28-34

 Objectives

 Scope

 Limitation

5. Data analysis 35-47

6. Findings 48-49

7. Suggestions 50

8. Conclusion 51

9. Bibliography

10. Annexure
 INTRODUCTION

Marketing strategy and planning

This learning guide was written by Sara Panter, an associate tutor at Ashridge. It is one of a
series produced by the Learning Resource Centre. Each guide sets out to give you a quick
summary of the main theories on a particular topic backed up by a practical commentary
based on Ashridge's long experience of consulting on and teaching management issues. We
hope that it whets your appetite for more information. The guide points you in the direction
of other sources such as key books, articles and videos.

Overview

Introduction

Stage one: Defining strategic marketing objectives

Stage two: Determining strategic focus

Stage three: Defining customer targets

Stage four: Competitor analysis

Stage five: Differential advantage

Stage six: Marketing mix

Stage seven: Implementation

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Introduction

The terms marketing strategy and strategic market planning are often used interchangeably,
which sometimes leads to confusion. We will use the term marketing strategy to mean the
overall strategy of an organisation in relation to a particular market. In this learning guide we
will explore the process of analysis and decision making which organisations go through as
they define and implement their approach to that market. Marketing plans will form part of
this process, in particular when it comes to implementation. Key aspects of the process are
that it is cyclical, ie subject to constant review and reiteration; that it is dynamic, subject to
changes in the environment (including customers and competition); and that it should be
shared within the organisation, rather than being the sole preserve of the marketing
department, if it is to be wholeheartedly adopted and implemented by the whole organisation.
Two interrelated trends in marketing approaches have changed the emphasis of marketing
strategy in recent years. These are relationship marketing and customer economics. The
increased use of sophisticated database information in marketing has helped further the
adoption of these two approaches and indeed both require such information in order to be
successfully implemented. If you are specifically interested in relationship marketing, there is
a further learning guide specifically on this topic.

This overview will introduce a framework for the steps to be followed in a comprehensive
marketing strategy process, the information and analysis required at each stage and the
decisions to be taken at each stage. There are of course other possible frameworks and
approaches which would be equally acceptable, provided all the key steps are included. What
is crucial is to see each stage, and the whole process, as dynamic and iterative.

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Components of marketing strategy

Source: Doyle, P. et al. Japanese Marketing Strategies in the UK: A Comparative study,
Journal of International Business Studies Vol. 17(1) Spring 1986. Reprinted with permission
from Butterworth Heinemann.

Stage one: Defining strategic marketing objectives

These will to a large extent be determined by corporate strategy, and will answer such
questions as: which markets should we compete in? what should be our targets, in terms of
market share and profitability, in these markets?
The answer to the first question will be determined by the inherent attractiveness of the
market and our ability to compete in it. A market may be attractive for a number of reasons:

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because there are high profits to be made in it; because it is growing; because it fits in well
with or fills a gap in our existing portfolio. It is useful at this stage to carry out some
structured analysis using a framework such as Michael Porter's Five Forces of Competition.

Porter's "Five Forces of Competition" analysis

© Porter, M.E. (1980) "Competitive Strategy" New York, The Free Press. Reprinted with
permission It is crucial, however, to ask not just whether the market is inherently attractive,
but whether it matches our capability profile: in other words, do we have particular strengths
which will give us an advantage in the market? A good marketing strategy may be
determined as much by those markets we choose not to enter as by those we do. Targets will
be expressed in terms of market share or profitability, or possibly both. For example, in an
early stage of the stage in the market life cycle, an organisation may concentrate on building
share at the expense of profitability, or at a later stage may be content for share to remain
static whilst profits are high.

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Stage two: Determining strategic focus

Having decided which markets to compete in, the question of how to compete can be
addressed. Should the focus be on growing the overall size of the market, or on taking a
bigger share of an existing market (penetration)? In order to do this, should we be
concentrating on getting existing customers to use more of our product, or on finding new
customers or even new segments? Or can we only increase share by taking customers from
our competitors?

The answers to these questions will depend largely on what stage has been reached in the life
cycle of the market for this product. This in turn will determine whether the market is fairly
homogeneous or divided into segments or sub-segments. The more mature the market, the
more fragmented it tends to be.

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 Phases Of The Product Life Cycle

© Arnold, David (1992) The Handbook of Brand Management, Century Business. Reprinted
with permission from FT Management.

The product market life cycle

Total sales in a particular product market will tend to follow the curve shown in Fig. 3 above
over a period of time. That period of time may span a hundred years or more (as would be the
case for, say, washing powder or banking services) or it may be much shorter, in the case of

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technological innovations such as the cassette recorder or fashion-related items such as
particular types of clothes or music. Each stage in the so called product market life cycle has
different characteristics in terms of customers, competition, and company priorities.

1. The introductory phase

Customers: Unfamiliar with or unaware of product category. Those who do buy

likely to be more experimentalist by nature. Sales low
Competition: Likely to be low Company priorities: Encourage trial. Work with customers on
product development to improve aspects such as packaging or documentation, or to eliminate
"teething troubles"

2. The growth phase

Customers: Growing in numbers. Segments begin to appear. May be less price

sensitive as category benefits more widely known Competition: Growing as new entrants
appear. Company priorities: Build share by concentrating on distribution, creating alliances
where appropriate to do this

3. Early maturity

Customers: Segmentation is now more distinct and customer loyalty established

as repeat purchases take place Competition: Intense as players attempt to secure their share
Company priorities: Differentiate to attract and retain customers in specific target segments

4. Late maturity

Customers: Knowledgeable, may demand low prices and high service levels
Competition: Intense due to lack of market growth and difficulty of further differentiation.
May be price based Company priorities: Attempt to lengthen life cycle by innovation, re-
inventing product category before decline stage

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5. Decline

Customers: Late adopters, eg first time buyers of microwaves or VCRs

Competition: May come more from substitute products or services than direct
competition, eg plastic instead of steel components; on line services instead of libraries or
hard copy journals Company priorities: Re-define market whilst milking profits in early part
of decline stage.

Stage three: Defining customer targets

The first step in defining customer targets will be to understand the structure of the market in
terms of what segments exist and what alternative ways of segmenting the market might be
possible. It is important to remember in this context that segmentation is a characteristic of
the market, not something which marketeers impose upon it. In seeking to gain a better
understanding of different customers' perception of value, marketeers may see certain
customers with similar characteristics and perceptions as belonging together as a distinct
segment, but unless those similarities actually exist, the segmentation and the target will be
meaningless. Customers within one segment should be similar to each other in ways which
are important for how, when, what and why they buy, and different from customers in other
segments. Organisation's which find new ways of segmenting a market may also find new
ways of differentiating their offering in response to a particular segment's perception of value,
and will therefore gain an advantage over their competitors.

Once we have a clear view of market structure, we need to decide which segment or
segments to target. Certain elements will tend to make a segment attractive:

Size.
Growth.
Profitability.
Fit with company strengths.
Relative weakness of competition.

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The issue of customer economics, or choosing the right customer portfolio, is vital.
Organisation's can waste large amounts of resources pursuing customers who are not
sufficiently profitable, or are unattractive in other ways. This is even more important given
the recent emphasis on building customer relationships. This is usually an expensive and time
consuming business, so organisation's need to be sure that they are building relationships
with the right customers. It is not usually possible or desirable to build relationships with all
customers. As part of this stage, it will be decided whether to target only one segment, or
several segments at once.

Clearly this decision will be influenced by such factors as:

Available resources.
Danger of brand contamination.
Opportunity for economies of scale in manufacturing, marketing or distribution.

Stage four: Competitor analysis

In practice, it is clear that the analysis of competitors and the selection of customer targets
will go hand in hand, since the one will exert a strong influence on the other. The decisions to
be taken at this stage will relate to competitive positioning and competitive strategy.
Competitor analysis is a big topic and has an important role to play at the level of corporate
strategy as well as in the marketing strategy process. If you want to look more specifically
and in greater depth at competitor analysis, there is a separate learning guide on this topic. In
the context of developing a marketing strategy, there are particular areas of competitor
analysis to be considered. The specific questions which competitor analysis must answer at
this market specific level are:

what does the customer buy when he does not buy my product?

what is his perception of these alternatives and how does it compare with his
perception of my product?

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what do I know or what can I infer about my competitors' strategies in relation to their
products?

In answering the first question, it may help to consider at what level does the competition
pose a threat in this market? There are a number of different possible levels of competition:

Budget level

The customer is choosing between spending his/her budget in two

completely different ways, to meet completely different needs. To use an example
from the regional newspaper industry: does the customer buy the local paper or a bar of
chocolate?

Generic competition

The competitive product delivers the same benefit but in a

different way: instead of buying the local paper, the customer listens to local radio.

Product category competition

Here the customer may choose between different product categories within the same industry:
the customer buys a national daily
newspaper instead of the local one, or reads the free local paper delivered through
his door, instead going out and buying one.

Brand competition

This is the most direct form of competition: does the customer

buy one local title or the other?

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Organisation's will often be aware of direct brand competition, but less knowledgeable about
the encroaching threat of competition at a lower level. The level at which the competitive
threat is the strongest will obviously have serious implications for the organisation's strategic
priorities.

The second question relates more to the positioning of competitive products in the mind of
the customer. The use of perceptual maps may help. Perceptual maps use the results of
market research to map consumers' perceptions of competing brands in relation to attributes
they consider important in determining value.
They are a useful tool in determining strategies, because marketeers can see the major threats
to their brand as well as the different directions in which they could move. Perceptual maps
are discussed in more detail in David Arnold's book, The Handbook of Brand Management
(1992) Century Business, pp.84 ff.

The third question requires some thinking around the role of the particular competitive
product in the competitor's portfolio as a whole. Portfolio management tools such as the
Boston Consulting Group Matrix or the Directional Policy Matrix will probably be useful
here. They are described briefly below.

Product portfolio matrix

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The BCG product portfolio matrix classifies products according to two measures, market
growth and relative market share. According to their position on the matrix, products are
known as problem children (or question marks), stars, cash cows or dogs.

Organisation's will tend to have a number of problem children at once, products at an early
stage of the life cycle, having low market share in a fast growing market. They require a great
deal of investment and support, but only some of them will survive to become mature
products which can contribute to the organisation's overall revenues.

Once products have succeeded in growing their market share, and whilst the market itself is
still in its growth phase, they are known as stars. These products still require substantial
investment to sustain their high market share position, but they are at the same time
generating positive cash flows themselves.

As the market moves into maturity and growth slows down, products with high market share
are classified as cash cows, able to generate cash whilst requiring less support than before.

These cash flows can therefore be used to support other products in the other categories.
Finally, products with low market share in a low growth market are known as dogs. They
may still generate some cash, but as the market moves into decline, it will not be worth it for
organisation's to invest money or effort in them. Instead they are advised to cut back
investment as much as possible (harvesting) or, if possible, to move out of the market
(divestment).

Clearly, the BCG matrix can be used by an organisation to analyze its own or its competitors'
products. Both will be useful for the purpose of competitive positioning.

The Directional Policy Matrix is also a two dimensional model but incorporates a number of
different elements into each dimension. It is therefore more complex and also more subjective

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than the BCG model. It can be used to plot brands, products, geographical areas or market
segments and helps managers to think through their strategy for each element in the
company's portfolio (or to make assumptions about their competitors' likely strategy). The
size of each circle drawn on the matrix may represent size of turnover or, if known, profit
margin.

The directional policy matrix

© Adapted from Abell, Derek F. & Hammond, John S. (1979) Strategic Market Planning:
Problems and Analytical Approaches, p213. Reprinted with permission of Prentice Hall Inc.
The two axes of this matrix are market attractiveness and relative strength versus the
competition. Clearly, an organisation will aim to have as many products as possible in the top
left hand corner, ie in a strong competitive position in an attractive market. It will almost
certainly have other products in the middle of the matrix (in an attractive market but in a
relatively weak competitive position) and even in the right hand corner (a weak product in an
unattractive market).

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Looking at the portfolio in this way will help with deciding priorities and allocating
resources.

For example, how much will it cost to keep a product in the top right position ? What other
products may threaten it ? If a product is in the top middle square, what resources or tactical
moves would it take to shift it over to the right ? And for the product in the bottom left –
should it be harvested ? or is it possible to shift it?

Stage five: Differential advantage

Differential advantage, or competitive advantage, describes the ways in which one

organisation's offering is different from and better than another's. This gives the company an
advantage over its competition. Differential advantage may come from a variety of sources:
superior position, superior skills or superior resources.

Superior position

Lower costs (perhaps due to location); incumbent position (eg distribution network);
relationships

Superior skills

Specialized knowledge, technical expertise, organisational skills such as flexibility

Superior resources

Financial resources, geographical coverage, exclusive ingredients, experienced people

Whatever the source of differential advantage, it must offer real value to the customer in that

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it meets his/her needs in a distinctive way, and is in some way better than the competition. It
is the meeting point of the three C's of customer, competition and company resources.

Differential advantage is at the heart of a marketing strategy and should be based on all of the
preceding analysis. It can then be translated into a practical marketing plan covering the four
P's of the marketing mix.

Stage six: Marketing mix

The "marketing mix" refers to the various elements of a company's offering in the market
place: the product or service itself, including its packaging; the price, including any discounts
or payment terms; the place, or distribution method; and the promotional mix by which the
offering is communicated to the market place.

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In addition to the traditional "four Ps" (Borden, The Concept of the Marketing Mix, Journal
of Advertising Research, Vol. 4, June 1964), subsequent writers have talked about the need to
include physical evidence, process and people, particularly where service products are
concerned. For example, if buying an intangible financial services product such as a
mortgage, the building society's offices, the ease and speed with which an application can
bemade, and the way in which the society's staff deal with their customers will all influence
the customer's perception of the offering.

The marketing plan can be produced at this stage, and will include a definition of the target
market segment(s), the source of differential advantage, and a list of actions under each of the
marketing mix headings, with timings, budget and responsibilities allocated.
The marketing mix approach simply says that all the messages the customer receives must be
consistent with each other and help to communicate the differential advantage (sometimes

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called the value proposition). Some have argued that the concept is outdated, relying too
much on the marketing department to implement it, and needs to be replaced by a more
company wide approach. It is certainly true that consistency and an integrated approach are
vital in implementing marketing strategy.

Stage seven: Implementation

The implementation of marketing strategy demands good communication between the

marketing function and the other parts of the organisation. The McKinsey "Seven S" model
(Peters, T. & Waterman, R. (1982) "In Search of Excellence" New York, HarperCollins) may
be used as a checklist to ensure that all the elements involved in implementing the strategy
are consistent with each other and with the strategy itself. The "seven S's" are:

Strategy itself - supported by

Skills - what distinctive core tasks (functional or organisational) is the company good at
performing?

Shared values - what is the culture of the company? What behaviour or achievements are
rewarded?

Style - what is the management style? How do things get done round here?

Staff - what are the people like? What is their educational or business background? What is
likely to motivate them? How is their morale?

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Systems - what formal systems are in place that may help (or hinder) implementation?
(these could be reward systems, monitoring systems, customer service systems?) What about
the informal systems?

Structure - what structures are in place that may help (or hinder) implementation? Is there
a flat management structure? Are there (for example) project management teams, or is the
organisation structured along purely functional lines?

Stage eight: Monitoring market performance

Ideally a marketing plan should also include performance targets in terms of sales and
contribution, customer satisfaction, or any other measures deemed appropriate. There is a
trend towards the use of non-financial measures in monitoring company performance.
(Kaplan, R. S. & Norton, D.P. (1996) The Balanced Scorecard, Harvard Business School
Press). The information needed for such measurements is often difficult to obtain, but as
feedback mechanisms showing whether or not a strategy is being successfully implemented,
they may be more useful than traditional quantitative measures. the learning guide on
performance management has more information about the balanced scorecard approach.

Development activities

Cross functional groups will often give valuable insights, as well as helping to improve
communication within the organisation. In a cross functional group, work through the
marketing strategy process - or take one stage and work through that. Useful frameworks for
discussion might be:

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The directional policy matrix

Divide the group up into trios and ask each to plot the company's main products onto a flip
chart or acetate. Then in plenary, compare the results. This should give rise to some
interesting discussion! Then raise the question of what could be done to move the various
products across the chart, upward and to the right. Are there some products which should be
harvested or markets from which we should withdraw?

Perceptual maps

Decide first how to label the axes. What characteristics are important to customers? For
example, for cars it might be speed, comfort, reliability, economy. It might help to try to
group products together roughly first and then look at what they have in common. Having
agreed on the axes, plot where you think customers perceive your products and your
competitors' products Of course the results of this exercise will be purely subjective and
should be tested by market research. But in this case, the results are perhaps less important
than the debate, which should be illuminating!

Levels of competition

Discuss where the competition is coming from at each level. Where are the real threats? What
strategies might we adopt to combat them?

Segment attractiveness

Look at the list of criteria and measure each of your segments and major customers against it.
Do they pass the test? If not, how much effort and resources is the organisation spending on
them? It may be that there are good reasons for selling to these customers. But it is worth
checking. By serving these customers, we could be missing opportunities elsewhere which
might be more profitable, or fit with our strategy better.

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Marketing mix

Look at each aspect of the marketing mix for each of the organisation's major products. Do
they fit together and send a consistent message?

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 LITERATURE REVIEW

Founded in 1886 in Atlanta, Coca-Cola Company is the world’s leading manufacturer,

marketer and distributor of nonalcoholic beverage concentrates and syrups, used to produce
more than 230 beverage brands. It is also the world’s most inclusive brand and company.

It has already ventured regionally out of Atlanta to other states of United States since the
late19th century and its signature contour bottle was first manufactured in the early 20th
century to distinguish themselves and assuring the genuine Coca-Cola. Though the company
grew rapidly and roared into some European countries during the 1900s, its presence
worldwide grew swiftly only after World War II.

Year after year, the company has been discovering new foreign markets to bring higher
profits as to fulfill its ultimate obligation to provide consistently attractive returns to
the owners of the company and to enlarge its customer base in order to achieve economies of
scale.

Due to strong competition with Pepsi-Cola, Coca-Cola wants to reduce its dependence on
United States market, which is their similar domestic market, as to reduce its risk and
increase its global market share by going international. Presently, the company has already
reached six billion consumers in nearly two hundred countries. Coca-Cola Company has been
very successful in international marketing effort.

Aggressive advertising, branding and market segmentation have played an important part in
the success. It has portrayed itself as fun, playfulness, freedom, lifestyle and the international
appeal of Coca-Cola was embodied by a 1971 commercial, where a group of young people
from all over the world to a hilltop in Italy to sing “I’ll like to buy the world a Coke”.

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The company has been sponsoring big events, like Olympics, Sea Games, FIFA Cup, and
International Film Festivals all over the world to create awareness, credibility and to brand
itself as world-class company.

It also makes big donations to organizations, charities and involvement in the communities.
These activities have aided Coca-Cola in creating a positive image and consumers’
perception toward the company.

Though the company makes the world its target market, segmenting by diverse consumer
preferences would still required to help Coca-Cola to serve the consumers better. As different
segments of different countries have various preferences or cultures, Coca-Cola tried to
expand with new flavors, brands and even reduced the sugar contents in its Coke, to suit all
the different segments.

This often increases the acceptance of new drinks that are specially designed for them. 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.

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 COMPANY PROFILE

The Coca-Cola Company: Who would have ever thought that what began as a local soda
fountain curiosity on May 8th 1886, would become the world’s favorite soft drink. From its
simple beginnings, Coca-Cola has grown to be a part of life in cities and towns around the
world.

The Coca-Cola Company has a remarkable history, one that has led to the success that
they enjoy today. But they have been never satisfied with what they have achieved .their
main driving force is itself the belief that the consumers of their products are not concerned
with the accomplishment of the past , but rather with excellence in present. Then and now,
the commitment to serving the consumers and to increasing share owners value have been
company’s driving goals . The Coca-Cola Company clearly believes in keeping in touch with
the simple desire of the people, everywhere to pause refresh and enjoy. Satisfying this need is
the core of their success.

Dr. J.S.Pemberton, the first owner of the Coca-Cola said “A simple little pleasure for
millions around”

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ABOUT COCA – COLA

HISTORY

The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola
India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian
economy to foreign investments in 1991. Since then its operations have grown rapidly
through a model that supports bottling operations, both company owned as well as locally
owned and includes over 7,000 Indian distributors and more than 2.2 million retailers.

Today, our brands are the leading brands in most beverage segments. The Coca-Cola
Company's brands in India include Coca-Cola, Fanta Orange, Limca, Sprite, Thums Up,
Burn, Kinley, Maaza, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and the
Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-
nutrients).

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola
Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and

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beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,
Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-
Cola Company, who are authorized to prepare, package, sell and distribute beverages under
certain specified trademarks of The Coca-Cola Company; and an extensive distribution
system comprising of our customers, distributors and retailers.

Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers
who are authorized to use these to produce our portfolio of beverages. These authorized
bottlers independently develop local markets and distribute beverages to grocers, small
retailers, supermarkets, restaurants and numerous other business.

The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its re-entry
into India. The company will be investing another USD 5 Billion till the year 2020. The
Coca-Cola system in India directly employs over 25,000 people including those on contract.
The system has created indirect employment for more than 1,50,000 people in related
industries through its vast procurement, supply and distribution system. We strive to ensure
that our work environment is safe and inclusive and that there are plentiful opportunities for
our people in India and across the world.
The beverage industry is a major driver of economic growth. A National Council of Applied
Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this
industry has an output multiplier effect of 2.1.

This means that if one unit of output of beverage is increased, the direct and indirect effect
on the economy will be twice of that. In terms of employment, the NCAER study notes that
"an extra production of 1000 cases generates an extra employment of 410 man days."

The Coca-Cola Company has always placed high value on good citizenship. Our basic
proposition entails that our Company's business should refresh the market; enrich the
workplace; protect and preserve the environment; and strengthen the community.

We leverage our unique strengths to actively support and respond to local needs -- be it the
need for education, health, water or nutrition. We have used our distribution network for
disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and
our presence in communities to improve access to education and potable water.

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The Coca-Cola India Foundation is now taking forward in the community at large, projects
and programs of social relevance to carry forward the message of inclusive growth and
development.

Coca Cola:
Coca-Cola originated in Atlanta, Georgia , on May 8, 1886. Pharmacist Dr. J.S Pemberton
stirred up fragrant caramel colored syrup in a three – legged brass kettle in his back yard and
carried a jug of his formulation down the street to Jacob’s pharmacy. That same day, the new
product made its debut as a soda fountain drink for five cents a glass. When carbonated water
was mixed with the new syrup, refreshment history was made!!

Thinking that the two C’s would look well in advertising, Dr. Pemberton suggested the name
and calligrapher the famous trademark in a unique script. On May 29th 1886 , the first
newspaper advertisement appeared in the Atlanta journal which proclaimed Coca-Cola was
“delicious and Refreshing, ” and the theme continues to echo today.

Following the death of Dr. J.S. Pemberton in 1888, all of his remaining rights to the product
were purchased by G. Candler, a druggist and Atlanta businessman. Mr. Candler recognized
great potential in Coca-Cola and went on to acquire complete control for $2300 in 1891.

The trademark “COCA-COLA” was first registered in United States Patent office on January
31st, 1893, and has been renewed periodically. That same year, the first dividend was paid to
the shareholders.

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Pepsi:
Pepsi is an American multinational food and beverage corporation headquartered in Purchase,
New York, United States, with interests in the manufacturing, marketing and distribution of
grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with
the merger of the Pepsi-Cola Company and Frito-Lay, Inc.

PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and
beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a
merger with Quaker Oats in 2001—which added the Gatorade brand to its portfolio.

Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the
company employed approximately 297,000 people worldwide as of 2011. The company's
beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in
certain regions

From being a company always under the shadow of Coca-Cola, PepsiCo has moved to the
front and is intent on staying there. Since 2003 the company’s stock has more than doubled as
it has out maneuvered Coca-Cola, the fall of which over the past five years has mirrored
PepsiCo’s rise. With over half its revenues coming from increasingly low fat foods and an
ongoing change towards healthier drinks products, the company is the proactive food and
drinks company, willing to cannibalize its own portfolio and best position itself for
long-term growth.

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THE ADVENT OF BOTTLING

The first Coke bottle made its debut in 1894, when merchant J.A.Biedenham of Vicksberg,
Mississippi installed bottling machinery in his candy store. Large scale bottling was made
possible by 1899 when entrepreneurs Thomas and Whitehead with financial assistance from
J.T. Lupton contracted with other individuals to establish community bottling operations and
developed exclusive territories at to market COCA-COLA. The first bottling plant was
opened in 1899 at Chatoonga . This was beginning of today’s worldwide network of locally
owned and operated independent bottlers which forms the backbone of Coke.

COCA-COLA’s ENTRY INTO INDIA

In 1993, COCA-COLA returned to India after a 16 year absence, first launched in Hathras,
near Agra, on October 26. A strategic alliance with Parle Exports gave the company instant
ownership of the nation's top soft drinks brands. Thums-up, Limca, Citra, Gold Spot and
Maaza, access to Parle's extensive 54-plant bottling network and a base for the rapid
introduction of the company's international brands.

This network of independently owned bottlers was and is India's largest soft drink bottling
system. There were no more launches that year, but the system was geared to implement a
phase roll-out of brands COCA-COLA and Fanta across the Company.

This was accomplished through incremental case injection of brands COCA-COLA & Fanta,
over and above the national and regional brands acquired from Parle. Eighteen Bottling plants
launches COCA-COLA and Fanta in their territories in 1994 itself, and this continued though
1995-96.

28
CONSUMER MARKETS AND BUYER BEHAVIOUR: AN ANALYSIS

Coca-Cola India realizes that the traditional set up and price sensitivity of the Indian markets
is a major time hindrance in their sales maximization efforts. The lifestyles , attitudes and
opinions , learning levels , distribution of income etc. of the consumers has to be carefully
examined and analyzed before forming a marketing strategy.

Consumer classification is a tedious job as they range from young and teenage consumer who
has made this drinks a part of their lifestyle and for whom it may be a bare necessity.

The typical Indian Family mindset has that it is a drink meant for occasions and festivities
and is not to be consumed regularly. There is a large section of buyers who cannot even
differentiate one brand from another. And for them the drink is an instrument of thirst
quenching.

Thus the marketing strategy has to have wide appeal and at the same time has to draw the
benefits of suitable consumer segmentation and product diversification.

COKE’S MARKET SITUATION AND POTENTIAL

Just spare a thought for the marketers and promoters of a carbonated soft drinks company in a
country where:

1. The economical set up is that of a developing economy which is predominantly agrarian.

2. 16% of the population is below poverty line, 48% of the populations are rural residents.

29
The per capita consumption of carbonated soft drinks (CSD) is just 1.5 million liters per year.
The country that we are talking of here is none other than ours, and the CSD Company is
COCA-COLA COMPANY. After reading the afore mentioned facts, you would have
probably dropped the idea altogether of promoting a soft drink brand in India.

“In a country which has a population of more than 100 Crores and a total national income
that would give a developed country a complex, there has to be a huge market for any
consumer product.”

And this is the reason why most of the biggest MNC’s in the world are again and again lured
into trying a hand in the Indian market.

Even if only 13% of the total population is your target market and the per capita consumption
1.5 millions ltrs. A year , the total consumption would sell out the consumption of three
developed countries taken together.

Thus their exists a huge market and immense selling potential in the country if tapped
properly.

CURRENT SCENARIO

The current neither too encouraging nor too depressing. The market growth rate of CSD is
currently 5%, however it may dip a little in future.

Therefore there is a chance that the market would force stagnation ahead, but a company can
maintain its share if it follows a suitable marketing strategy.

30
The good news is that there is a growing market for other drinks such as:

Mineral water: 40% growth rate.

Juices and juice based drinks: 30% growth rate

Hence. There lies an enormous amount of untapped potential in these areas.

BUSINESS REVIEW

Coca-Cola Bottling Co. Consolidated, together with its subsidiaries, engages in the
production, marketing, and distribution of nonalcoholic beverages, primarily products of The
Coca-Cola Company. The company offers sparkling beverages, such as energy drinks; and
still beverages, including bottled water, tea, ready-to-drink coffee, enhanced water, juices,
and sports drinks. It holds cola beverage agreements and allied beverage agreements, under
which it produces, distributes, and markets sparkling beverage products of The Coca-Cola
Company in certain regions.

The company also distributes and markets still beverages of The Coca-Cola Company, such
as PowerAde, vitamin water, and Minute Maid Juices To Go, as well as produces, distributes,
and markets Dasani water products. In addition, it holds agreements to produce, distribute,
and market Dr Pepper.

Further, the company distributes and markets various other products, including Monster
energy products and Sun drop; and its own products, such as Country Breeze tea and Fuel in
a Bottle power shots, as well as Tum-E Yummiest, a vitamin-C enhanced flavored drink.
Additionally, it produces beverages for other Coca-Cola bottlers; and provides restaurants
and other immediate consumption outlets with fountain products.

31
The company sells and distributes its products directly to retail stores and other outlets,
including food markets, institutional accounts, and vending machine outlets. It holds bottling
rights from The Coca-Cola Company covering North Carolina, South Carolina, and West
Virginia, as well as portions of Alabama, Mississippi, Tennessee, Kentucky, Virginia,
Pennsylvania, Georgia, and Florida. The company was founded in 1902 and is headquartered
in Charlotte, North Carolina.

32
 RESEARCH METHODOLOGY

OBJECTIVES OF STUDY

 The main objective of the project is to analyze and study in efficient way the current
position of Coca Cola Company.

 The study was aimed to perform market analysis of Coca Cola Company and find out
different factors effecting the growth of coca cola.

 To perform competitive analysis between coca cola and its main competitor (Pepsi).

 To understand the reasons behind the purchase of coca cola products.

33
 SCOPE

This study basically tries to discover the position of coca cola in the market. It also tries to
discover the preferences of the customers when posed with a choice between coca cola and
Pepsi. It is primarily directed to the general public but was done only in New Delhi.

LIMITATIONS

1.) The information has been collected by secondary data, that’s why what people
actually believe of coke could not be given.

2.) The coke company has so many products that it is not possible to go in detail of each
& every product in such a short time.

3.) There is not enough information present on the net so that I cannot focus on one
particular product, though I referred to encyclopedia and other magazines but it was
still not enough.

4.) As I was not available with enough of primary data, so the analysis of the project may
differ from person to person.

5.) I was not able to get the details of their transactions for the past few years because of
which I can’t compare the increase or decrease of coca cola’s profit.

34
 RESEARCH METHODOLOGY

Research

Research is a general term which covers all kinds of studies designed to find responses to
worthwhile questions by means of a systematic and scientific approach. Clinical trials into the
safety and effectiveness of new drugs are just one type of research. Other studies, in the
domain of dementia, might be aimed at finding out how a procedure could be improved, how
people with dementia or their carers cope, whether a certain form of social support delays
entry into residential care or whether a new drug or technique is safe and effective etc.

There are many different ways to carry out research but roughly speaking there are two main
approaches, namely qualitative and quantitative. Qualitative studies concentrate mainly on
words and meanings and aim to capture the richness and complexity of human experience,
whereas quantitative studies involve recording information obtained from participants in
numerical form so as to enable statistical analysis of the findings and the generalisation of
those findings to the wider population.

Behind these two main approaches, there are important theoretical differences and
philosophical assumptions about the nature of knowledge, truth and reality, how this should
be recorded, what kinds of methods should be used and the role of the researcher in this
process.

In the past, there was considerable debate about which approach was “right” and some
people argued that the two approaches were incompatible. Nowadays, it is generally accepted
that both approaches are valid and have their advantages and disadvantages.

35
For this reason, many researchers adopt a pragmatic approach, simply using whichever
method is best suited to answering their research questions and which might even involve a
combination of both approaches within the same study.

Marketing research

Marketing Research is the systematic design collection analysis and reporting of data &
finding relevant to a specific marketing situation facing by the company.

Component of research

The following are the components of research, which are as follows:

 Research Design
 Sample design, sample plan & sample size
 Method of data collection
 Method of data analysis

In simple terms methodology can be defined as, it is used to give a clear cut idea on what the
researcher is carrying out his or her research. In order to plan in a right point of time and to
advance the research work methodology makes the right platform to the researcher to
mapping out the research work in relevance to make solid plans.

More over methodology guides the researcher to involve and to be active in his or her
particular field of enquiry. Most of the situations the aim of the research and the research
topic won’t be same at all time it varies from its objectives and flow of the research but by
adopting a suitable methodology this can be achieved.

36
 TYPES OF RESEARCH:

Basic research

The research which is done for knowledge enhancement, the research which does not have
immediate commercial potential. The research which is done for human welfare, animal
welfare and plant kingdom welfare.

It is called basic,pure,fundamental research. The main motivation is to expand man's

knowledge, not to create or invent something. There is no obvious commercial value to the
discoveries that result from basic research. Basic research lay down the foundation for the
applied research. Dr.G.Smoot says “people cannot foresee the future well enough to predict
what is going to develop from the basic research” Eg:-how did the universe begin?

Applied research

Applied research is designed to solve practical problem of the modern world, rather than to
acquire knowledge for knowledge sake. The goal of applied research is to improve the human
condition. It focuses on analysis and solving social and real life problems. This research is
generally conducted on large scale basis, it is expensive. As such, it often homes, offices,
how can communication among workers in large companies be improved? Applied research
conducted with the support of some financing agency like government , public corporation ,
world bank, UNICEF, UGC,Etc,.

According to hunt, “applied research is an investigation for ways of using scientific

knowledge to solve practical problems” for example:- improve agriculture crop production,
treat or cure a specific disease, improve the energy efficiency can be further classified as
problem oriented and problem solving research. Problem oriented research:- research is done
by industry apex body for sorting out problems faced by all the companies.

37
Eg:- WTO does problem oriented research for developing countries, in india agriculture and
processed food export development authority (APEDA) conduct regular research for the
benefit of agri-industry. Problem solving:-this type of research is done by an individual
company for the problem faced by it. Marketing research and market research are the applied
research.

For eg:- videocon international conducts research to study customer satisfaction level, it will
be problem solving research. In short, the main aim of applied research is to discover some
solution for some pressing practical problem.

Descriptive research

Descriptive research is the combination of qualitative and quantitative research. Quantitative

research aims to measure the quantity or amount and compares it with past records and tries
to project for future period. In social sciences, “quantitative research refers to the systematic
empirical investigation of quantitative properties and phenomena and their relationships”.

The objective of qualitative research is to develop and employ mathematical models, theories
or hypothesis pertaining to phenomena.

Quantitative research involving the use of structured questions, where the response options
have been Pre-determined and large number of respondents is involved.eg:-total sales of soap
industry in terms of rupees cores and or quantity in terms of lakhs tones for particular year,
say 2008,could be researched, compared with past 5 years and then projection for 2009 could
be made.

Qualitative research is collecting, analyzing and interpreting Qualitative data by observing

what people do and say. Qualitative research refers to the meanings, definitions,

38
characteristics, symbols, metaphors, and description of things.Qualitative research is much
more subjective and uses very different methods of collecting information, mainly individual,
in-depth interviews and focus groups. The nature of this type of research is exploratory and
open ended. Small number of people is interviewed in depth and or a relatively small number
of focus groups are conducted.

39
SOURCES OF DATA

1. Secondary data:

It is defined as the data collected earlier for a purpose other than one currently being
pursued. As researcher I have scanned lot of sources to get an access to secondary
data which have formed a reference base to compare the research findings. Secondary
data in this study has provided an insight and forms an outline for the core objectives
established.

The various sources of secondary data used for this study are:

 News paper

 Magazines

 Text books

 Marketing reports of the company

 Internet

2. Primary data:

The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in
the study.

The methods that have been used to collect the primary data are:

40
  Questionnaire

 Personal interview

RESEARCH MEASURING TOOLS & TECHNIQUES

The primary tool for the data collection used in this study is the respondent’s response to the
questionnaire given to them. The various research measuring tools used are:

 Questionnaire

 Personal interview

 Tables

 Percentages

 Pie-charts

 Bar charts

 Column charts

41
 DATA ANALYSIS

AGE GROUP & GENDER:

From Fig 2.4, we can comprehend that 90% of total respondents belong to the age group of
20-30. This is because most of the consumers that prefer or consume Coca-Cola products
belong to this age group. About 6% belong to age group below 20 and 3% belong to age
group of 30-40.Form Fig 2.5, we come to know that the gender ratio of the total respondents
is almost 2:1 (male: female).

42
 SOFT DRINK CONSUMPTION & EXPENDITURE:

From Fig 2.6, we interpret that about 48% of the total respondents consume soft drinks rarely
or once a week. About 35% respondents consume soft drinks twice or thrice a week and only
18% consumes soft drinks every day.

From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-100 a week
on Coca-Cola products, which is very low as compared to the global scenario. This creates a

43
potential growth market for Coca-Cola India. About 12% spends from 100-150 a week & 7%
spend above 150.

PURCHASING PORTAL PREFERENCE:

From the above data, we have ascertained that preferred portal for purchase of Coca-Cola
products is the retail shops i.e. 58%. This is probably because not all communities in India
have supermarkets and other purchasing channels present nearby, whereas, we can find retail
shops in every corner.19% prefer to purchase from Supermarkets and Vendor machines. 23%
prefer to purchase from Pubs, Restaurants and Multiplexes.

44
REASON FOR CONSUMPTION:
From this graph, we infer that there is no specific occasion why people purchase Coca-Cola
products. Although some of the advertising campaigns target special occasion or festivals.
From Fig 2.9 it is concluded that 59% respondents purchase Coca-Cola without any specific
reason. About 23% purchase for the purpose of parties, 15% purchase while watching movies
in the cinemas and only about 4% purchase during festivals and for picnic purposes.

45
 SOFT DRINK PREFERENCE:
From the above graph we interpret that about 70% of the respondents, prefer consuming
Coca-Cola product over Pepsi and other drinks. This clearly states why Coca-Cola is market
leader with almost 60% of market share. 23% prefer Pepsi Products and only 75 prefer other
drinks.

46
 OPINION ABOUT COCA-COLA PRODUCTS

& PRODUCTS EXPECTED BY CONSUMERS:

From Fig 2.11, we infer that though the respondents are more than satisfied by the Coca-Cola
product range they would still like the company to introduce new drinks. From Fig 2.12, we
conclude that about 40% would like to see a new fruit drink being added to the product
basket, 26% want energy drinks, 20% alcoholic drinks and only 14% want another fizzy
drink. Majority of the people wanting to see a fruit drink is mainly because people are more
health conscious now and want to manage their calorie intake.

47
 QUANTITY PREFERENCE:
From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET bottle of
Coca-Cola Products. About 27% prefer to purchase glass bottles, 19% prefer Can of 300ml
and only 8% prefer 1 & 2 litre bottles of Coca-Cola.

48
49
 BRANDING & PRICING:

From Fig 2.14, it is concluded that respondents find Coca-Cola products better than that of
Pepsi products. About 62% respondents said that they find Coca-cola products better than
Pepsi and only 38% supported Pepsi products.

From Fig 2.15, we infer that about 62% of the respondent considers the pricing of Coca-Cola
much more reliable than that of Pepsi. About 38% respondents think that Pepsi have better
pricing than that of Coca-Cola.

50
 QUALITY & TASTE:
From Fig 2.16 & 2.17, it’s clear that Coca-Cola products have better taste and quality than
that of Pepsi. About 73% respondents consider that Coca-Cola products have very good
quality and taste. 27% respondents consider Pepsi products have better taste and quality.

51
 AVAILABILITY & SATISFACTION:
From Fig 2.18, it’s clear that there is slight difference between the availability of products of
Coca-Cola and Pepsi. About 51% respondents think that Coca-Cola products are much easily
available in the market.49% consider that availability of Pepsi products is more in the market.

52
 FINDINGS

 Coke is investing a lot of money in advertisement of its soft drinks, according to

me if they focus little more on mineral water and tea & coffee they can earn more
profit there.

 Coke use to have 1ltr and 1.5 ltr soft drinks bottles 1 year ago but now there
supply to the market has been stopped because of which If a person want to have
a bottle of 1 ltr or 1.5 ltr than he has to either for 5OO ml bottle which might be
toot less or he has to go for 2 ltr which might be too expensive for him. so they
are leaving a big gap between 5oo ml and 2 ltr bottle, they must cover it and
specially when their rivals PEPSI are also not into it so it will be of great profit to
them.

 Now a days, We hardly use to see that coke is sponsoring any cricket tournament
or any other big event, and his rival company Pepsi use to do it regularly,
therefore coke might lose some of its market share due to it,. That’s why they
should sponsor such events which millions of people of India use to watch. This
will enhance not only the reputation but also the increase their market.

53
 SUGGESTIONS

The suggestions made in this section are based on the market study conducted as part of
“coca –cola India”. The suggestions are arranged in order of priority, highest first.

 Perform a detail demand survey at regular interval to know about the unique needs
and requirements of the customer.

 The company should make hindrance free arrangement for its customers/retailers to
make any feedback or suggestions as and when they feel.

 The company should focus to bring some more flavors like health drinks and other
low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as
it has already entered the energy drink arena with “Burn”.

 Coca-cola’s distribution channel is mostly through retail. Whereas the competitors

also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should
try to increase their distribution in these areas.

 The company must keep a watch on its primary competitors in market in order to be
able to compete with them.

 The company should use new attractive system of word of mouth advertisement to
keep alive the general awareness in the whole market as a whole.

 The company should be always in a position to receive continuous feedback and

suggestions from its customers/consumers as well as from the market and try to solve
it without any delay to establish its own good credibility.

 A strong watch should be kept on distributors so that the goodwill of the BRAND
doesn’t get affected.

54
 CONCLUSION

1. Coke when entered Indian market, they have tough competition with PEPSI and PARLE.
as time goes on coke is increasing its market share and then a time came when they took over
PARLE’S four brands(Thumbs Up, Gold Spot, Limca, Citra).

2. Now Coca- cola India limited is one of the largest soft drink company in the country.
Which deals not only in soft drinks but also in mineral water & also in collaboration with
NESTLE beverage partners worldwide (bpw) they have entered into tea & coffee but they use
to remain silent about this joint venture.

3. Their enterance to the mineral water with KINLEY has given them a share of 25% of the
total mineral water market, which is second to Parley’s BISLERY and with 2 rs pouch of sun
fill powder they came and given them an expected market of 300crore. in tea & coffee with
NESTLE .

4. Coke, no doubt is the company which again and again has come with new creative ideas
like CHOTA COKE at just 5 rs and fanta (green apple & watermelon) with a reduced price of
8 Rs per 300 ml.

5. Coke is having a tough competition with PEPSI but with their superior quality and new
successful brand’s like SPRITE they have proved that they are the best in this sector.

55
 BIBLIOGRAPHY

BOOKS

 Kothari C. R. (2ND edition) Research Methodology. New Delhi: Pearson Education

 Beri, G. C. (2005, 11th Reprint) Marketing Research. New Delhi: Tata McGraw-Hill
Publishing Company Limited.

WEBSITES

 www.coca-colacompany.com

 www.coca-colaindia.com

 http://www.coca-colajourney.com.au

 https://www.google.co.in/?client=safari&channel=mac_bm&gws_rd=cr&dcr=0&ei
=9pUGWpZXjIO9BJqisKAD

 https://in.yahoo.com
 QUESTI0NER

 Name

……………………………………………………………………………….

 Gender

 Male

 Female

 Do you drink soft drink?

 Yes

 No

 How often do you have soft drinks per week?

 Once a week

 Twice a week

 Thrice a week

 Everyday

 Rarely

 What occasions do you prefer to buy coca cola products?

 Festivals

 Picnic

 Parties

 Cinemas
 What drink comes to your mind when you think of soft drinks?

 Coca cola

 Pepsi

 Other products of coca cola

 Other products of Pepsi

 Other drink

 What do you feel about coca cola product?

 Bad

 Below satisfactory

 Satisfactory

 Good

 Excellent

 How much do you spend on coca cola products per week?

 50-100

 100-150

 150-200

 Above 200

 Put (x) mark in which ever you feel is appropriate?

Product Coca cola Pepsi

1.Branding
2. Quality
1. Price
2. Taste
3. Availability
 What kind of product do you want coca cola to introduce in the future?

 Fizzy drinks

 Fruit drinks

 Energy drinks

 Alcoholic drinks