HINDUSTAN COCA COLA BEVERAGES

PVT LTD.

DETAILS OF INDUSTRIAL TRAINING

TITLE OF THE PROJECT: - HORIZONTAL EXPANSION PLAN

AREA OF THE PROJECT: - MARKETING

COMPANY GUIDE: - V.S.R PRASAD

FACULTY GUIDE: - S. SAI BABA

Under the guidance of

SUBMITTED BY:-
S SAI BABA
LECTURER SHARIQUE EQBAL
M3-30
PGDM (Core Marketing)

SIVA SIVANI INSTITUTE OF MANAGEMENT

KOMPALLY, SECUNDERABAD
(2008-10)

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 ACKNOWLEDGEMENT

Through this acknowledgement I want to express my sincere gratitude to the

V.S.R PRASAD (SALES EXECUTIVE) OF COMPANY for giving me an
opportunity to work on this project under his able guidance. He guided me a
lot from time to time and without his motivation the project was impossible.

I am also thankful to Mr. SIMADHRIRTM EXECUTIVE OF COMPANY

for his valuable help.

I am also thankful to PROF S. SAI BABA faculty member of Siva Sivani

Institute of Management for his valuable help.

I would also like to express my gratitude towards colleagues who had co-
operated a lot while preparing this project.

Sharique eqbal
(Marketing)

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 DECELARATION

I SHARIQUE EQBAL declare that this project report titled “STUDY ON

HORIZONTAL EXPANSION PLAN COCA COLA COMPANY
INHYDERABAD CITY” is an original work done by me under the
guidance of PROF SAI BABA the faculty of Siva Sivani Institute of
Management. I further declare that it is my original work as a part of my
academic course.

PLACE: Secunderabad SHARIQUE EQBAL

DATE:

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 CERTIFICATE
This is certifying that MR SHARIQUE EQBAL is a student of this
institution. He has undergone internship and completed his project
work in Hindustan Coca-Cola Beverages Private Limited. He
worked on the topic “To HORIZONTAL EXPANSION Coca-Cola
Company in HYDERABAD City” and completed the project
successfully under my supervision and guidance.

I wish him all success.

Place: Secunderabad

Date: PROF SAI BABA

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CONTENTS
TABLE OF CONTENT
PAGE
ACKNOWLEDGEMENT
DECLARATION
CERTIFICATE …..
LIST OF TABLES
Chapter-1 --- --------------------------------------------------------------------- (6)
Introduction
Industry Profile
Company Profile
Chapter –2 ------------------------------------------------------------------------ (29)
Objectives of the study
Scope of the study
Significance of the Study
Literature Review
Scheme of Dissertation
Chapter -3 ------------------------------------------------------------------------- (35)
Research Methodology
Research Design
Sample Profile
Tools and Methods Data Collection
Data Processing and Analysis
Limitations
Chapter-4 --------------------------------------------------------------------------- (37)
Data Analysis
Chapter-5 ---------------------------------------------------------------------------- (46)
Interprétation and Findings
Bibliography

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Annexure Questionnaire

Capter-1
 INTRODUCTION
 IDUSTRY PROFILE
 COMPANY PROFILE

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 INTRODUCTION
The manufacturing of the soft drinks began in the 1830’s. However, evolution of the soft
drinks took place over a much longer period. The forerunners of soft drinks began more
than 2,000 year ago when Hippocrates, the “Father of Medicine”, first suspected that
mineral waters could be beneficial to our well being.
The soft drink industry was seasonal business in the early days, operating the primarily
during the summer months. Gradually, demand grew for soft drink to be consumed in the
home. Automatic vending machines began to appear in the 1920’s, one again changing
the business of soft drinks. Vending machines and fountain dispensers led the way to the
expansion of soft drink to industrial outlets. New technology helped soft drink bottlers
meet going consumer demand by significantly increasing the product availability. The
mushrooming demand for the product resulted in the growth of the soft drink industry.
Inventors of the soft drinks spread their products across by opening a few strategically
placed bottling facilities so franchise agreements.
Responding to consumer demand, industry rolled out soft drinks in cans and introduces
diet beverages to the market. Carriers were develop for convenience and ease in taking
soft drinks from the store to the home. Development of new flavors, sale of cans products
in vending machines and invention of Poly Ethylene Terephthalate (PET) bottles
followed.
The soft drinks market in India till early 1990’s was in hands of domestic players like
Campa , Thumps Up, Limca etc but with opening up of the economy and coming of
MNC players, Pepsi and Coke, the market has come totally under their control.
Coca-Cola being a global company has several brands throughout the globe. It has its
operations in more than 150 countries and India is one of them. The company is leading
over rivalry companies with major market share and most preferred brands in India. The
company is having 8 major brands viz Coke, Thumbs-up, Sprite, Limca, Fanta, Maaza,
Pulpy Orange, kinley and Bonaqua. Out of these brands the company is having 2 major
juice drinks which are Maaza and Pulpy Orange of which the latter one is recently
introduced in Indian market.

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INDUSTRY PROFILE

Carbonated Soft Drinks

At the core of the beverage industry is the carbonated soft-drink category. The dominant
players in this area (Coca Cola, Pepsi, and Cadbury-Schweppes) own virtually all of the
North American market’s most widely distributed and best-known brands. They are
dominant in world markets as well. These companies’ products occupy large portions of
any supermarket’s shelf space, often covering more territory than real food categories like
dairy products, meat, or produce.

As with many mature retail industries, the beverage giants have a problem – growth in
the sales of their flagship carbonated products are at a near standstill in the key U.S.
market, with 1% growth or less. After years of rapid growth, it seems that the average
American can’t drink any more flavored, fizzy soda water. To remedy that, these three
companies are rapidly expanding both globally as they enter and promote new markets
for existing products and locally, as they add products from adjacent beverage categories
in the supermarket, in categories that are still expanding. We'll talk about these areas in a
later posting.

The prototype of all marketing and branding struggles, the “Cola Wars” keep expanding.
The Pepsi and Coca Cola keep rolling out the big guns: dueling pop stars, and new
branded products in the form of “Vanilla Coke” and “Pepsi Blue.” . They are fighting
on the TV, in the fast-food restaurants, and in the supermarkets; they are also dueling in
the schools. One of the biggest pushes of the last few years has been convincing school
districts, universities, and other institutions to go all-Coke or all-Pepsi, in return for a
(small) cut of the gross sales.

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Selling costly sugared water and building an increasing demand for it, even in Third
World countries, involves marketing in its purest form, unsullied by any preexisting
need or local tradition. Markets in Eastern Europe, China, India, and Mexico, among
others, are expanding fast, and both Coke and Pepsi are finding local partners (bottlers) in
these countries to keep extending their reach. And while the American market may be
mature, there’s still an opportunity worldwide to replace hot beverages like coffee and tea
that require some preparation with these cold, iconic.

All this worldwide activity can’t disguise an unpleasant core reality for the vendors: U.S.
carbonated soft drink sales increased only 0.5% in the year 2002. Although total sales for
the industry was up slightly, per capita consumption was down for the third year in a row
In other words, domestic soft drink growth is not keeping pace with population growth.

Overall soda market

In fact, Coke and Pepsi have a third major rival on the bottled soft drink shelves, namely
Cadbury-Schweppes. The big three carbonated beverage makers now exist in a stable
oligopoly those changes only by small increments and which controls over 90% of the
market. Over the years, Cadbury-Schweppes (the result of a merger between a British
candy company and a British beverage company) has improved its position by acquiring
key brands in the US, namely Dr. Pepper and Seven-Up, along with A & W and
Canada Dry.

In past decades, the carbonated beverage section had been the beneficiary of an amazing
record of growth, where consumption has more than doubled over the past 25 years.
Americans consume twice as much soda as they did 25 years ago, up from 22 gallons per
person per year to over 56.

In 2000, these three companies had almost exactly the same share of the U.S. market they
had in 1999, namely:

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Company
Percentage Brands
Coca Cola 44.1% Coke, Sprite, Barq, Fanta, Mello Yello, etc.
PepsiCo 31.4% Pepsi, Mountain Dew, Mug, Slice, etc.
Cadbury/Schweppes 14.7% Seven-Up, Dr. Pepper, Schweppes, A & W,
Canada Dry, Sunkist, Squirt, etc.

While individual flavors go up and down, the relative market share of the big three
changes at a glacial rate. The next biggest North American soda company, the Canadian-
based Cott Beverage Company, had only a little over 3% of the market and that company
specialize in supplying private label soda to supermarkets and other chains.

In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to battle
against the big guys. This gave the company more shelf position and immediately gave
the RC Cola brand, long a distant also-ran with weak marketing muscles, more sales and
market presence. Pepsi gave itself a small boost because of the popularity of newly
introduced Mountain Dew Code Red, a hyper-caffeinated soda. Coke’s numbers declined
slightly. The market share figures in 2001.

Company Percentage
Coca Cola 43.7%
PepsiCo 31.6%
Cadbury/Schweppes 15.8%

It’s pretty indicative of this mature market that the only major move in market share
comes through a takeover. Moreover, the takeover targets that are left are so small that
the biggest remaining brand doesn’t make more than 1% difference in total volume.

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New age beverages

In the last part of our look at the beverage business, we noted that oligopolies Coca Cola,
PepsiCo, and Cadbury Schweppes had "flooded" a mature market, so that there was
minimal growth potential in the carbonated beverages category. So, how can these
companies grow, something all oligopolies are compelled to do? First, by expanding
internationally. Second, by acquiring or adding new products in other beverage areas,
which show both faster growth and less well-defined competition. In fact, other beverage
types have only in the last decade come into focus as separate, important categories.

So the search for new beverage footholds has become the second front of the Cola Wars.
There is a scramble for new territories in beverage shelf space, and Coke and Pepsi are
investing heavily. These alternative beverages areas were established by startup or small
cap companies, including Snapple and Arizona Iced Teas, Ocean Spray and Nantucket
Nectars, SoBe and Calistoga. The emerging categories began to look like both a threat
and an opportunity for the big three.

In 2001, according to Beverage Age Magazine. The segments of alternative or "New

Age" beverages ranked by order of sales, were:

• Bottled water in clear plastic containers

• Mildly flavored water (Clearly Canadian, Very fine, Acqua Vie)
• Fruit juices and drinks (some shelf-stable, like Ocean Spray, Mott's, DelMonte;
some refrigerated, like Nantucket Nectars, Tropicana)
• Sports and energy drinks (Gatorade. PowerAde, SoBE Power, Red Bull, G-Up)
• Iced tea (Snapple, Arizona, Lipton, Nestea)
• Premium soda (Thomas Kemper Soda, Jones Soda)
• Cold coffee drinks (Starbucks cappuccino drinks, PlanetJava, Arizona)
• Végétale/fruit juice blends, (V8, Odwalla)
• Enhanced dairy drinks (Smooth Moos, Chocolate Moose Energy Shakes,
drinkable yogurt)
• Soy-based and other non-dairy beverages (Odwalla, Health Source)

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New age beverages

In the last part of our look at the beverage business, we noted that oligopolies Coca Cola,
PepsiCo, and Cadbury Schweppes had "flooded" a mature market, so that there was
minimal growth potential in the carbonated beverages category. So, how can these
companies grow, something all oligopolies are compelled to do? First, by expanding
internationally. Second, by acquiring or adding new products in other beverage areas,
which show both faster growth and less well-defined competition. In fact, other beverage
types have only in the last decade come into focus as separate, important categories.

So the search for new beverage footholds has become the second front of the Cola Wars.
There is a scramble for new territories in beverage shelf space, and Coke and Pepsi are
investing heavily. These alternative beverages areas were established by startup or small
cap companies, including Snapple and Arizona Iced Teas, Ocean Spray and Nantucket
Nectars, SoBe and Calistoga. The emerging categories began to look like both a threat
and an opportunity for the big three.

In 2001, according to Beverage Age Magazine. The segments of alternative or "New

Age" beverages ranked by order of sales, were:

• Bottled water in clear plastic containers

• Mildly flavored water (Clearly Canadian, Very fine, Acqua Vie)
• Fruit juices and drinks (some shelf-stable, like Ocean Spray, Mott's, DelMonte;
some refrigerated, like Nantucket Nectars, Tropicana)
• Sports and energy drinks (Gatorade. PowerAde, SoBE Power, Red Bull, G-Up)
• Iced tea (Snapple, Arizona, Lipton, Nestea)
• Premium soda (Thomas Kemper Soda, Jones Soda)
• Cold coffee drinks (Starbucks cappuccino drinks, PlanetJava, Arizona)
• Végétale/fruit juice blends, (V8, Odwalla)
• Enhanced dairy drinks (Smooth Moos, Chocolate Moose Energy Shakes,
drinkable yogurt)
• Soy-based and other non-dairy beverages (Odwalla, Health Source)

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The problem with this market, like most emerging categories in the grocery business, is
an excess of vendors and products, making it hard for retailers to decide who to assign
their precious shelf space to. This is accompanied with an even larger number of SKUs
of different sizes and flavors, causing generally chaos in the market.
That makes for a great opportunity for the oligopolists, who have entered into these
markets in a big way. We'll talk about the water category later, but here are some of the
other alternative brands now owned in the alternative market by the carbonated Big
Three. (The notation (lic.) denoted a beverage licensed from another company.)

Cadbury-
Category Coca Cola PepsiCo Notes
Schweppes
Lipton (lic. Lipton #1, Nestea
Iced tea Nestea (lic. Nestle) Snapple
Unilever) #2, Snapple #3
Gatorade #1,
Sports drinks Powerade Gatorade Mistic
Powerade #2
Health drinks KMX SoBe
Starbucks Starbucks #1,
Coffee Drinks Planet Java
(lic.) Planet Java #3
Minute Maid,
Refrigerated Tropicana; Tropicana #1,
Odwalla, Fresh Nantucket Nectars
Juices Dole (lic.) Minute Maid #2
Samantha
Orangina; Mott's;
Shelf-stable
Dole (lic.) Welch's (lic.);
juices
Clamato
Milk-based Yoo-hoo; Raging
drinks Cow
Soy-based Tropicana
drinks smoothies

Note that most of these products were bought or started in the last three years. The big
three already have the salesmen, the vending machines, the bottlers, the money to

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advertise, and the international reach. With this power, they have managed to take over a
second aisle in the supermarket, along with a solid section of the refrigerator case. And as
we'll see, the biggest potential is in water.

Bottled Water

The bottled water industry in North America is growing aggressively. It is the fastest
growing segment in the beverage industry (around 30% annually, compared to 1% or so
in carbonated beverages), and the cost of goods sold is almost negligible. Once confined
to Perrier and Evian sippers at fancy restaurants or people with bad--tasting local tap
water, there's been a tripling of US consumption since 1985. As a recent FORTUNE
magazine article put it,

The most brutal battle in the beverage industry is the one for dominance of bottled water.
With the niche growing at a 30% annual clip, bottled water will likely catapult ahead of
coffee and beer to become the second-best-selling beverage--just behind soft drinks--by
2005. (Currently bottled water's barely ahead of No. 5 milk.)

Another article in Beverage Marketing notes the concentration of the market as water
gets to be a bigger deal.

Super marketers have revolutionizing the industry. Since the costs of buying and holding
shelf space is so expensive, the small, regional firms, which used to be major water
suppliers, are being priced out. The only companies that can get their products on the
shelves are the new water oligopolists, large national and multinational companies. Four
companies now dominate the North American market for bottles water: Nestle, Danone,
Coca Cola, and PepsiCo.

Like other areas of the beverage market, water, once the province of small, local spring
bottlers and a few European importers, has now become an oligopoly. While Nestle
(originally a Swiss chocolate company) and Danone (originally a French dairy firm) have
been in the market for a while, Pepsi and Coke are Johnnies-come-lately to the market,
Pepsi in 1995 and Coca Cola in 1999. But they have so much marketing savvy, power in

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the distribution and bottling area, and store presence, that they have made their two
brands, Aquafina (Pepsi) and Dasani (Coke), the top two selling brands in the US
market. That's in spite of the fact that, unlike most of the competitors, these are simply
filtered and bottled local tap water. Yet bottles of the either of these essentially free
liquids sell for almost the same a similar container of soda or iced tea. Not a bad business
to be in!

Both companies use their vast experience in associating drinks with lifestyle, sharpened
during the cola wars. They are ramping up their ad budgets and getting significant growth
in volume as they do so. And they have a big opportunity. According to estimates, one
third of American households have never tried bottled water, and carrying around a bottle
of water has become a status symbol for many younger Americans.

Nestle is in fact the overall market leader, with $2.5 billion overall in water sales. It sells
a number of brands that are popular in various regions of the country, such as Poland
Spring in the Northeast. Arrowhead and Calistoga in California, and so on. These are
actual spring waters that have to be trucked to the bottler. Nestle also sells Perrier, San
Pelligrino, and some other European imports.

Danone is number four in volume, with its imported Evian, Volvic, and others, along
with Naya and Sparkletts from the U.S. Of the big four, Danone is the one that is sinking,
losing sales to the others. In fact, they just signed an agreement with Coca Cola to market

and distribute several of its brands in the US, including Dannon and Sparkletts, and
some economy brands. Evian and other European brands will not be affected.

In 2002, these four companies had achieved over 60% of the water sales in the US, and
that was rapidly expanding. Only two competitors have shares over 2%: Suntory Group
(part of a Japanese conglomerate) and independent Crystal Geyser. Our guess is that
minor brands will more and more be crowded off the shelf. (By the way, Cadbury-
Schweppes has a limited water role at present.)

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Supermarket sales of cases of water are starting to show competition, as Nestle, Coke,
and Pepsi are starting to compete on price as a Wall Street Journal report noted.

Coke and Pepsi are trying to avoid a water version of the cola wars, in which they
battled it out with price, cuts in the supermarket aisle. That's why they're concentrating
some 60% to 70% of their sales in the lucrative business of selling single, cold bottles in
convenience stores or vending machines.

But the next step is differentiating waters by making them vitamin-enriched

nutriceutucals. Pepsi, through its Gatorade subsidiary, now offers Propel, enhanced with
vitamins and minerals. It is also selling something called Aquafina Essentials, which is
flavored water (some sugar added), doubtless a healthy drink. Coke is selling Dasani
Nutriwater, a similar gimmick. Even the water category, only recently discovered by
these companies, is now spawn new categories, opening new fronts in the cola wars.

Company Select Brands

Perrier, Poland Spring, Arrowhead, Deer Park, Zephyrhills, Ozarka, Ice
Nestle
Mountain, Calistoga, Vittel, San Pellegrino, Acqua Panna, Vittel
PepsiCo Aquafina
Coca- Cola Dasani

COMPANY PROFILE

• Established: 1886
• Ranking: We own 4 of the world's top 5 nonalcoholic sparkling beverage brands

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 • Associates: 92,400 worldwide
• Operational Reach: 200+ countries
• Consumer Servings (per day): nearly 1.6 billion
• Beverage Variety: more than 3,000 products

Our Secret Formula is what sets us apart...

o Understand how we work with our bottlers to produce and distribute our
beverages
o Explore our community recovery and recycling efforts
o Water conservation partnership launches in India

History

Dr. John Smith Pemberton, an Atlanta druggist, invented "Coca-Cola" syrup on May 8,
1886. The fountain drink was first marketed as a brain and nerve tonic in drugstores. The
soda was first bottled in 1894.

In 1916, a new design was unveiled for Coca-Cola bottles called the Contour Bottle,
which helped the soda stand out among imitators and became a smash hit and a symbol of
the company. Cans were introduced by 1960

Coca Cola Company is one of the United States based company founded in the year
1886. It is one of the world's leading manufacturer, marketer and distributor of cola types
products. The industrial type of the company comes under the Beverages. The company's

17
headquarter is situated at Atlanta. It has its worldwide operation in more than 200
countries of the world MAZZA.

The company for the year 2002 was regarded as the company having highest Brand
value. The brand value was measured at 69,637,000,000 in terms of $. Presently the
company has more than 400 brands over the world.
The company employs approximately 55,000 peoples over the world. The net income of
the company as of the year ended on December 31, 2005 reached at $ 4,872 millions.

Presently E. Neville Isdell is the Chairman, Board of Directors and the Chief Executive
Officer of the Company.
Benefits

Employees, spouses and dependents are eligible for health and wellness benefits coverage
from date of hire. There are no pre-existing condition exclusions for participants in the
health plan.

Benefit plans include Health (including Vision Care), Dental, Accidental Death-
Dismemberment, Group Life Insurance, Dependent Life Insurance, Health Care Account,
Dependent Care Account, Vacation Purchase Program, Business Travel Accident
Insurance, Short-Term Disability, Long-Term Disability, Survivor's Benefits Programs
and Employee Assistance Program.

The Coca-Cola Company offers medical (including vision care) and dental coverage for
eligible same-sex domestic partners and their dependent children.

401(k) - Thrift Investment Plan (TIP)

o Participation in the plan is immediate upon date of hire/rehire for all eligible
employees.

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 o Choice of 27 funds in eight fund categories including money market, stable value,
intermediate term bond, balanced, large-cap stock, small-cap stock, international
stock and Company stock.
o The Coca-Cola Company will match employees' contributions, dollar for dollar,
up to 3% of their compensation. The Company match is subject to a three year
vesting schedule.
o Rollover contributions from other qualified plans are permitted immediately upon
date of hire for all eligible employees.
o Participants may manage their accounts online daily.

Traditional Retirement Plan - Employee Retirement Plan

Entirely Company-funded and designed to pay eligible employees monthly benefits upon
retirement from the Company.

- In addition to our health and life benefits, employees have the opportunity to take
advantage of other benefits such as:
- Flex time & summer hours (reviewed annually and implemented by business units
as applicable)
Adoption Assistance Program provides eligible employees financial assistance for
certain expenses associated with the process of adopting children.
- Employee Assistance Program provides confidential counseling services and the
Company currently pays the full cost of this benefit for its eligible employees,
retirees and their dependents.
- Active Living Program that provides reimbursement for employees to join a
health club.
Matching Gifts Program allows employees to donate monies to education, arts or
cultural institutions, and The Coca-Cola Company matches up to $4,000 of that
gift per calendar year.
- Service Recognition Awards for employees after each five year period of
continuous service.
- Company paid time-off for volunteer work (one day per year).

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 - Business casual attire unless otherwise required due to customer-related
circumstances.

Quality Is Our Highest Business objective

The Coca-Cola Company exists to benefit and refresh everyone it touches. For us,
Quality is more than just something we taste or see or measure. It shows in our every
action. We relentlessly strive to exceed the world's ever-changing expectations because
keeping our Quality promise in the marketplace is our highest business objective and our
enduring obligation.

Consumers across the globe choose our brand of refreshment more than a billion times
every day because Coca-Cola is the Symbol of Quality.

Corporate Citizenship

The Coca-Cola Company believes our business has always been based on the trust
consumers everywhere place in us—trust that is earned by what we do as a corporate
citizen and by our ability to live our values as a commercial enterprise.
There is much in our world to celebrate, refresh, strengthen and protect.
Through our actions as local citizens, we strive every day to refresh the marketplace,
enrich the workplace, preserve the environment and strengthen our communities.
At the heart of our business is the trust consumers place in us. They rightly expect that we
are managing our business according to sound ethical principles, that we are enhancing
the health of our communities, and that we are using natural resources responsibly.

Coca Cola in India

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The Coca Cola got approval from the Government of India in July 1996 for setting up a
company (holding type) for investing US $ 700 Millions. In July 1997 the holding
company got permission for its bottling subsidiaries. The company has stepped forward
for reaching 300 millions soft drink consumers through 700,000 retail outlets In India.

The coca cola company in India has given a direct employment of over 7,000 peoples.
Over the years the company has invested around US $827 Millions in India. The
company has also taken different initiatives in India for the social sector development in
the recent years sponsorship program.

MYTHS & FACTS

Since August 5, 2003 the quality and safety of Coca-Cola and PepsiCo products in India
have been called into question by a local NGO, the Centre for Science and Environment
(CSE).

The basis of the allegations is tests conducted on products of Coca-Cola and PepsiCo by
CSE’s internal unaccredited laboratory, the Pollution Monitoring Laboratory.

In India, as in the rest of the world, our plants use a multiple barrier system to remove
potential contaminants and unwanted natural substances including iron, sulfur, heavy
metals as well as pesticides. Our products in India are safe and are tested regularly to
ensure that they meet the same rigorous standards we maintain across the world.

This situation calls for the development of national sampling and testing protocols for
soft drinks, an end to sensationalizing unsubstantiated allegations, and co-operation by all
parties concerned in the interests of both Indian consumers and companies with
significant investments in the Indian economy.

The facts versus the fiction false statements made in recent weeks have led to false
perceptions by Indian consumers:

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 Coca-Cola products in India contain pesticide residues that are above EU
Myth
norms.
Fact Throughout all of our operations in India, stringent quality monitoring takes
place covering both the source water we use as well as our finished product.
We test for traces of pesticide in groundwater to the level of parts per billion.
This is equivalent to one drop in a billion drops. For comparison’s sake, this
would also be equivalent to measuring one second in 32 years, or less than one
person in the entire population in India. These tests require specialized
equipment at accredited labs to have accurate results. Even at these stringent
miniscule levels we are well within the internationally accepted safety norms.
Myth Coca-Cola products sold in India are "toxic" and unfit for human consumption.
Fact There is no contamination or toxicity in our beverage brands. Our high-quality
beverages are – and have always been - safe and refreshing. In over 200
countries across the globe, more than a billion times every day, consumers
choose our brands for refreshment because Coca-Cola is a symbol of quality.
Coca-Cola has dual standards in the production of its products, one high
Myth
standard for western countries, another for India.
Fact The soft drinks manufactured in India conform to the same high standards of
quality as in the USA and Europe. Through our globally accepted and validated
manufacturing processes and Quality Management systems, we ensure that our
state-of-the-art manufacturing facilities are equipped to provide the consumer
the highest quality beverage each time. We stringently test our soft drinks in
India at independent, accredited and world-class laboratories both locally and
internationally.
Myth In India the soft drinks industry is virtually unregulated.
Fact There are no standards for soft drinks in the US, the EU, or India. In India,
water used for beverage manufacture must conform to drinking water
standards. The water used by Coca-Cola conforms to both BIS and EU
standards for drinking water and our production protocols ensure this through a
focus on process control and testing of the water used in our manufacturing

22
 process and the final product quality.
Coca-Cola has put out results for Kinley water only and not for their soft
Myth
drinks.
Fact The results of product tests conducted by TNO Nutrition and Food Research
Laboratory in the Netherlands is conclusive and is available on The Science
Behind Our Quality web page.
Myth International companies like Coca-Cola are “colonizing” India.
Fact The Coca-Cola business in India is a local business. Our beverages in India are
produced locally, we employ thousands of Indian citizens, our product range
and marketing reflect Indian tastes and lifestyles, and we are deeply involved
in the life of the local communities in which we operate. The Coca-Cola
business system directly employs approximately 10,000 local people in India.
In addition, independent studies have documented that, by providing
opportunities for local enterprises, the Coca-Cola business also generates a
significant employment “multiplier effect.” In India, we indirectly create
employment for more than 125,000 people in related industries through our
vast procurement, supply and distribution system.
Farmers in India are using Coca-Cola and other soft drinks as pesticides by
Myth
spraying them on their crops .
Fact Soft drinks do not act in a similar way to pesticides when applied to the ground
or crops. There is no scientific basis for this and the use of soft drinks for this
purpose would be totally ineffective.

In India, as in the rest of the world, our products are world class and safe and
the treated water used to make our beverages there meets the highest
international standards.

Products and brands

The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its
namesake Coca-Cola beverage. This includes other varieties of Coca-Cola such as:

23
 • Diet Coke (introduced in 1982), which uses aspartame, a synthetic phenylalanine-
based sweetener in place of sugar
• Diet Coke Caffeine-Free
• Cherry Coke (1985)
• Diet Cherry Coke (1986)
• Coke with Lemon (2001)
• Diet Coke with Lemon (2001)
• Vanilla Coke (2002)
• Diet Vanilla Coke (2002)
• Coca-Cola C2 (2004)
• Coke with Lime (2004)
• Diet Coke with Lime (2004)
• Diet Coke Sweetened with Splenda (2005)
• Coca-Cola Zero (2005)
• Coca-Cola Black Cherry Vanilla (2006)
• Diet Coca-Cola Black Cherry Vanilla (2006)
• Coca-Cola BlāK (2006)
• Diet Coke Plus (2007)
• Coca-Cola Orange (2007)
• Summer Of US Coke Range (2007-2008)

Mission, Vision & Values

The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape
our business in the future and move swiftly to prepare for what's to come. We must get
ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term
destination for our business and provides us with a "Roadmap" for winning together with
our bottler partners.

24
Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.

• To refresh the world...

• To inspire moments of optimism and happiness
• To create value and make difference

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.

• People: Be a great place to work where people are inspired to be the best they can
be.

Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
And satisfy people desire and demand

• Partners: Nurture a winning network of customers and suppliers, together we

create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.

Productivity: Be a highly effective, lean and fast-moving organization

Our Values
Our values serve as a compass for our actions and describe how we behave in the world.

• Leadership: The courage to shape a better future

• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it's up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands

25
 Quality: What we do, we do well

Focus on the Market

• Focus on needs of our consumers, customers and franchise partners

• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day

Be insatiably curious

Chapter-2

26
Objective of horizontal expansion plan OF COCA COLA

A plan which is intimately connected to horizontal merger is horizontal expansion. This

refers to the expansion or growth of a company in a sector that is presently functioning.
The aim behind a horizontal expansion is to grow its market share for a specific
commodity or service.

The objective behind this type of mergers is to achieve economies of scale in the
production procedure through carrying off duplication of installations, services and
functions, widening the line of products, decrease in working capital and fixed assets
investment, getting rid of competition, minimizing the advertising expenses, enhancing
the market capability and to get more dominance on the market.
1. to increase the market share
2. to develop new markets for the expansion of coca cola
3. to identify new opportunities for the new market
4. to get rid of competition and reduce cost

The objective should be thought from different perspective point

Of view as mentioned below

27
coca cola vertical integration

coca cola soft drink

BCG matrix of coca cola

Product life cycle of coca cola

Coca cola competitor

Coca cola coolers

About Horizontal Mergers

Horizontal mergers are those mergers where the companies manufacturing similar kinds
of commodities or running similar type of businesses merge with each other. The
principal objective behind this type of mergers is to achieve economies of scale in the
production procedure through carrying off duplication of installations, services and
functions, widening the line of products, decrease in working capital and fixed assets
investment, getting rid of competition, minimizing the advertising expenses, enhancing
the market capability and to get more dominance on the market.

Horizontal mergers can sometimes result in monopoly and absorption of economic power
in the hands of a small number of commercial entities.

According to strategic management and microeconomics, the expression horizontal

merger delineates a form of proprietorship and control. It is a plan, which is utilized by a
corporation or commercial enterprise for marketing a form of commodity or service in a
large number of markets. In the context of marketing, horizontal merger is more prevalent
in comparison to horizontal merger in the context of production or manufacturing

Horizontal Integration
Sometimes, horizontal merger is also called as horizontal integration. It is totally opposite
in nature to vertical merger or vertical integration.

Horizontal Monopoly
A monopoly formed by horizontal merger is known as a horizontal monopoly. Normally,
a monopoly is formed by both vertical and horizontal mergers. Horizontal merger is that
condition where a company is involved in taking over or acquiring another company in

28
similar form of trade. In this way, a competitor is done away with and a wider market and
higher economies of scale are accomplished.

In the process of horizontal merger, the downstream purchasers and upstream suppliers
are also controlled and as a result of this, production expenses can be decreased.

Examples of Horizontal Mergers

Following are the important examples of horizontal mergers:

The formation of Brook Bond Lipton India Ltd. through the merger of Lipton India
and Brook Bond
The merger of Bank of Mathura with ICICI (Industrial Credit and Investment
Corporation of India) Bank
The merger of BSES (Bombay Suburban Electric Supply) Ltd. with Orissa Power
Supply Company
The merger of ACC (erstwhile Associated Cement Companies Ltd.) with Damodar
Cement

coca cola vertical integration

Vertical integration is the process where by firm acquires another firm at different level of
distribution. For example manufacturer may acquire a wholeseller or wholeseller may
acquire retailer . this is called forward integration. If retailers acquires wholesellers then
it is known as backward vertical integration. It is an effective means of coordination,
commitment. Coca cola shifted their several function like packaging, transportation and
selling to retailers, to their bottlers. It is cost saving for coca cola and to enlarge market
for their products. In 1990’s coca cola is engaged in the strategy of vertical integration,
this means that in purchasing bottlers coca cola will perform itself storage, transportation,
packaging and marketing to retailers

coca cola soft drink

Trade name of a sweetened, carbonated drink, originally made with coca leaves and
flavored with cola nuts, and containing caramel and caffeine. The company owns four of
the world's top five soft-drink brands (Coca-Cola, Diet Coke, Fanta, and Sprite), and
owns or licenses more than 400 brands.

BENEFIT OF BCG Matrix

29
 • If a company is able to use the experience curve to its advantage, it should be able
to manufacture and sell new products at a price that is low enough to get early
market share leadership. Once it becomes a star, it is destined to be profitable.
• BCG model is helpful for managers to evaluate balance in the firm’s current
portfolio of Stars, Cash Cows, Question Marks and Dogs.
• BCG method is applicable to large companies that seek volume and experience
effects.

The model is simple and easy to understand.

It provides for management to decide and prepare a base for future action

Product life cycle

The PLC indicates that products have four things in common: (1) they have a limited lifespan; (2)
their sales pass through a number of distinct stages, each of which has different characteristics,
challenges, and opportunities; (3) their profits are not static but increase and decrease through
these stages; and (4) the financial, human resource, manufacturing, marketing and purchasing
strategies that products require at each stage in the life cycle varies (Kotler and Keller, 2006).
Whilst there is a common pattern to a product's life cycle, which is bell-shaped in nature, this
pattern does vary depending on the specific characteristics of a given product. These life cycle
patterns are illustrated and discussed in the subsequent section.

Understanding the Product Life Cycle (PLC) is of critical importance to a firm launching a new
product. It helps a firm to manage the risk of launching a new product more effectively, whilst
simultaneously maximizing the sales and profits that could be achieved throughout the product's
life cycle

COCA COLA COMPETIORS

First, there is Pepsi-Cola, Dr. Pepper/Seven Up (Includes RC Cola), and Inca Kola.

Major Competitors
This section first selects the competitors based on assets, sales, focus of business, or
geographic reach. Then all the competitors are profiled. For each competitor, business
description is given followed by products & services and geographic segmentation.

Key Business Strategies of Each Competitor

It talks about the current and future strategies of each company. All business, marketing,
financial and organizational strategies are discussed here.

Comparative SWOT Analysis

30
Our comparative SWOT analysis is a valuable step in assessing your company's and you
competitors’ strengths, weaknesses, opportunities, and threats. It offers powerful insight
into the critical issues affecting a business.

Comparative Financial Analysis

This section compares the recent financials of the company and its competitors. The
financial performance of each segment of all the companies is also discussed
here. The objective is to evaluate the financial health of the company vis-à-vis its
competitors. The stock price comparison helps us in evaluating the performance of the
company position versus its competitors from an investor’s viewpoint.

SCOPE OF STUDY

Horizontal merger provides the following advantages to the companies which are
merged:

1) Economies of scope
The notion of economies of scope resembles that of economies of scale. Economies of
scale principally denote effectiveness related to alterations in the supply side, for
example, growing or reducing production scale of an individual form of commodity. On
the other hand, economies of scope denote effectiveness principally related to alterations
in the demand side, for example growing or reducing the range of marketing and supply
of various forms of products. Economies of scope are one of the principal causes for
marketing plans like product lining, product bundling, as well as family branding.

2) Economies of scale

Economies of scale refer to the cost benefits received by a company as the result of a
horizontal merger. The merged company is able to have bigger production volume in
comparison to the companies operating separately. Therefore, the merged company can
derive the benefits of economies of scale. The maximum use of plant facilities can be
done by the merged company, which will lead to a decrease in the average expenses

31
The important benefits of economies of scale are the following:

Synergy
Growth or expansion
Risk diversification
Diminution in tax liability
Greater market capability and lesser competition
Financial synergy (Improved creditworthiness, enhancement of borrowing power,
decrease in the cost of capital, growth of value per share and price earning ratio, capital
raising, smaller flotation expenses
Motivation for the managers

For attaining economies of scale, there are two methods and they are the following:

Increased fixed cost and static marginal cost

No or small fixed cost and decreasing marginal cost

One example of economies of scale is that if a company increases its production twofold,
then the entire expense of inputs goes up less than twofold.

Significance of the study

 Through this study company can know about its growth compared to its major
competitor
PepsiCo.
 This study will also help to the company to know about their new concepts position in
the market
 This study will also help to the company to know about its promotional activities
involved in advertising.
 Through this study company will know about the availability of its products in the

market.

 This study is helpful to find out the sales trends of the Coke products and its effect on
consumers value and satisfaction.

32
 This study is helpful to find out the number of outlets coming under RED concept
 This study is also helpful to find out the outlets efficiency which are coming under
RED.
 This study directly deals with interaction of different kinds of people in the
organization which helps me to understand the corporate communication system.
 This study also helps me to understand how the marketing strategy like Pull and Push
works in the corporate. (For push – at the time of pulpy promotion, for pull at the
time of more demand of sprite.)

Literature Review

Control of market share is the key issue in this study. The situation is both Coke and
Pepsi are trying to gain market share in this beverage market, which is valued at over $30
billion a year. Just how this is done in such a competitive market is the underlying issue.
The facts are that each company is coming up with new products and ideas in order to
increase their market share. The creativity and effectiveness of each company's marketing
strategy will ultimately determine the winner with respect to sales, profits, and customer
loyalty. Not only are these two companies constructing new ways to sell Coke and Pepsi,
but they are also thinking of ways in which to increase market share in other beverage
categories. Although the goal of both companies are exactly the same, the two companies
rely on somewhat different marketing strategies .Both companies have also relied on
finding new markets, especially in foreign countries. In the foreign markets, Coke has
been more successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a
barter system that proved to fail. However, in certain countries that allow direct
comparison, Pepsi has beat Coke. In foreign markets, both companies have followed the
marketing concept by offering products that meet consumer needs in order to gain market
share. Both companies cannot just sell one product; if they do they will not succeed. They
have to always be creating and updating their marketing plans and products. The

33
companies must be willing to accommodate their “target markets”. Gaining market share
occurs when a company stays one-step ahead of the competition by knowing what the
consumer wants. Apart from this study previous studies were based on the distribution
network and market share of some of these beverages companies. This study is based on
to find out the market share of coca-cola in some of the areas of hyderabad city.

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities.
Around the world, some local brands do compete with Coke. In India, Coca-Cola ranked
third behind the leader, Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola
Company purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-
share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in
which there exists a United States embargo. Mecca Cola and Qibla Cola, in the Middle
East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a major competitor to Coca-
Cola. In Iran and also many countries of Middle East, Zam Zam Cola and Parsi Cola are
major competitors to Coca-Cola. Coca-Cola Co. slightly increased its lead over rival
Pepsi-Cola Co. in 2002, thanks to the successful launch of Vanilla Coke and the growth
of Diet Coke, according to U.S. soft drink industry rankings released last week. Coke
gained 0.6 percentage points in market share and increased its case volume by 2.1
percent, according to Beverage Digest/Maxwell, a New York-based industry newsletter
and data service. The company captured a larger share of the market even though its
Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates 44.3
percent of the U.S. soft drink market, but saw its market share drop between 1999 and
2001. With the latest gains, it's only 0.2 percentage points away from where it stood in
1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2 company
commands 31.4 percent of the U.S. soft drink market.

In 1990, when Indian government opened the market to multinationals, Pepsi was the
first to come in. Thums Up went up against the international giant for an intense
onslaught with neither side giving any quarter. With Pepsi roping in major Indian movie
stars like Juhi Chawla, to thwart the Indian brand, Thums Up increased its spending in
the Cricket sponsorship. Then the capacity went from 250ml to 300ml, aptly named

34
MahaCola. This nickname gained popularity in smaller towns where people would ask
for "Maha Cola" instead of Thums Up. The consumers were divided where some felt the
Pepsi’s mild taste was rather bland.

In 1993 Coca-Cola re-entered India after prolonged absences from 1977 to 1993. But
Coca-Cola’s entry made things even more complicated and the fight became a three-way
battle. That same year, in a move that baffled many, Parle sold out to Coke for a meagre
US$ 60 million (considering the market share it had). Some assumed Parle had lost the
appetite for a fight against the two largest cola brands; others surmised that the
international brands seemingly endless cash reserves psyched-out Parle. Either way, it
was now Coca-Cola’s, and Coke has a habit of killing brands in its portfolio that might
overshadow it. Coca-Cola soon introduced its cola in cans which was all the rage in
India, with Thums Up introduced alongside, albeit in minuscule numbers. Later Coca-
Cola started pulling out the Thums Up brand which at that time still had more than 30%
market share

35
Scheme of Dissertation
This study has been carried out “Study on expansion plan concept and market share
of coca-cola company in Hyderabad city”. For this market research of some areas of
Hyderabad now has been completed. The scheme comprises of finding out the market
share/sales trend of these modules and brands. This study is carried out to find most
suitable areas to make expansion among brands of these policies by taking sample size of
55. The layout of the dissertation is as follows;

Introduction: Introduction gives a brief idea about beverage industry, scope of study,
significance of study, objectives of study, expansion concept and literature review part.

Organization Profile: This part comprises of industry profile and company profile. This
part gives a brief idea about current trends in industry and company.

Research methodology: This part give an idea about research design, sample size/design
and method of data collection.

Analysis and Interpretations: This part tells about data analysis, method carried out for
data analysis and interpretations from the analysis part.

Discussions and Recommendations: This part gives an idea about some inputs to
explore some other parts of research for further studies and tells about which part is
necessary for more focused research.

Bibliography and Annexure: This part comprises of references taken for this study and
questionnaire which was framed for this study.

36
Chapter-3
METHODOLOGY

RESEARCH METHODOLOGY

37
This research involved a study, which was descriptive as well as explorative in nature. It
basically aims at gathering data about how the Coca-cola scheme playing in the mind of
shopkeepers , consumer, and industry in the specified area of Hyderabad city.

Sample Profile: - Sampling plan consists of:

a) Sampling Unit: - The retailer of grocery shop, general store, betel shop,
medicine store was selected from different places of Hyderabad city.
b) Sample Size: - My sample size was 55 outlets.
c) Sampling Procedure: - Simple Random sampling procedure was followed.
d) Sampling Method: - Data were collected by retailer survey. The retailers
are directly contacted and interviewed at their retail counter.

Methods of Data Collection

There are mainly two types of data:

1- Primary Data
2- Secondary Data

1. Primary Data Collection: - Primary data can be collected by three methods:

(a) Observation
(b) Experiment
(c) Surveys
But here, only survey method of data collection is preferred which is very suitable to
reach the researchers motto.

ii) Research Instrument: - Printed questionnaire was used as the research

instrument to collect the required information.
iii) Area of Survey: - The survey was conducted in different location of
hyderabad city.
2. Secondary Data Collection: - As secondary data were not available with shopkeepers
as well as stockiest, so these were collected from company records.

38
39
 Chapter-4
ANALYSIS AND INTERPRETATION
 ANALYSIS OF THE DATA

ANALYSIS OF DATA

40
 Data are collected from different location of Hyderabad city
1. Gacchibowli
2. Hitech city
3. kukatpally

Survey Analysis
The survey was conducted in different location of Hyderabad A total survey of 55
outlets was conducted

41
 1. Number of shared and exclusive outlets in Hyderabad city?

Exclusive Shared BOTH NOT ANY

ONE
6 16 10 21

outlet name

exclusive
11%
not any one exclusive
40% shaired
shaired
both
30%
not any one
both
19%

Findings : I surveyed 55 outlets in Hyderabad( gacchibowli,hitech city, kukatpally)

out of which 11% are exclusive, 30% are shared and 40% are having neither co and
pc

2. Volume consumption of coke in 2008 in c/s ?

42
 200 ML 300 ML BOTH NOT ANY ONE
6 16 10 21

vol consumption in 08 ko

30
25
20
15 vol consumption in 08 ko
10
5
0
little
200ml 300ml 1000ml
priority

vol consumption 25 21 7 1
in 08 ko

Findings:
Volume consumption of coke is higher 200 ml then others. There is a chance of more
launching the 200 ml products

3. volume consumption of Pepsi in 2008

43
 200 ML 300 ML 100ML LITTLE
PRIORITY
20 14 13 6

vol cons in 08pc

20

15

10
vol cons in 08pc
5

0
little
200ml 300ml 1000ml
priority

vol cons in 08pc 20 14 13 6

Findings:
Volume consumption of pc for 200 ml is high

4. Vernacular size of freeze

2 VCC 4 VCC 7 VCC 11 VCC OTHERS

44
 venicularsize freeze

2vcc
9% 2vcc
others
4vcc 4vcc
39%
26% 7vcc
11vcc
11vcc 7vcc others
9% 17%

Findings : during the survey 39% are not using coke freeze there is a chance of
providing the freeze in that area and give business to directly company , and
according to question no 2 there is a chance to provide 200ml corselets with
different product line

5. either freeze is co /pc

NOT ANY KO PC KO/PC

22 12 14 6

45
 either freeze is ko/pc

ko/pc
11%
not any not any
pc 41%
26% ko
pc
ko/pc
ko
22%

Findings : there are 41% chance in the area to give business by providing coke
freeze

6. sales growth assets

KO PC BOTH NOT ANY

11 14 5 23

46
 sales grow th assets

ko
21%
not any ko
44% pc
both
pc
not any
both 26%
9%

Findings: there are 44% outlets in the Hyderabad city where there is no sales growth
assets

7. board

KO PC BOTH NOT ANY

19 7 4 24

47
 board

ko
notany 35% ko
45%
pc
both
notany

both pc
7% 13%

Findings : there are 45% outlet where there is not any sign board in the store
department

8. flange

KO PC BOTH NOT ANY

20 4 1 27

48
 flenge

ko
ko
38%
pc
notany
both
52%
notany
both pc
2% 8%

9. income

LOW HIGH MEDIUM NOT ANY

15 27 10 15

49
 income

notany low
22% 22%

low
high
med
med notany
15%
high
41%

Findings : during 55 outlet survey there is 22% outlet where there is low income
and 22% outlet in service industry where there is no income to coca cola
company in Hyderabad, so there is a chance to develop business in these outlet to
increase market share.

10. channel

SERVICE INSTITUTION GROCERY COMPLEX

31 14 6 3

50
 channel

complex
grocery
6%
11%
service
inst
grocery
inst service
26% 57% complex

Findings: during the survey the major survey was focused on service industry to make
expansion of coca cola

11. business developed

YES NO
32 22

51
 business dev

no
41%
yes
no
yes
59%

Findings: out of 55 outlets surveyed I developed 59 % business and 41% didn’t

respond

12. Leading brand

TU SP CO LIM FANTA MAZA

14 8 9 5 7 11

52
 leading brand (p)

maza tu
20% 26%
tu
sp
co

fanta lim
13% fanta
sp
15% maza
lim
9% co
17%

Findings : With the above diagram it is found that thumps up is the

dominating brand with the sales of 26% among their brands.

13. Leading pack

200 ML 250 ML 300ML 600 ML 1.2L 2L

19 14 5 7 2 4

53
 leading pack (Q)

20

15

10 leading pack (Q)

0
200ml 250ml 300ml 600ml 1.2lit 2lit

leading pack (Q) 19 14 5 7 2 4

Findings : from the above graph it is clear that 200 ml pack is selling most next is 250
ml after that 300 ml, 600 ml, 1.2 lit and 2.0 lit .

14. Market share of Coca- Cola Company comparing with PepsiCo for
2008 basing volume.

Pepsi
29%

Coke
71%

54
Findings: - With the help of above diagram it can be conclude that the share of the
Coca-Cola is the market leader with 71% of market share with considering volume of
2008 while it’s competitor PepsiCo had the markets share of 29% considering volume of
2008.

Chapter-5
FINDINGS & SUGGESTIONS

55
 FINDINGS

• It is found that Coca-Cola is market leader compared with Pepsi the market
challenger. The market share of Coca-Cola is 65% and that of Pepsi is 35%
only according to the areas where the researcher had surveyed

• It is found that 11% are exclusive, 30 % are shared and 40% are neither co and
pc. It is found that 40% of outlet are needed to horizontal expansion.

• Volume of consumption 200ml co is higher then others it is necessary to

launch 200ml products more. Even though during the survey consumers
demand more 200ml products of co for business expansion in service industry

• It is found that there is 44% outlet where there is no sales growth assets

56
• It is found that 39% are not using any vernacular freeze so there is a chance to
provide freeze in these area to give business or develop business and increase
market share

• It is found that thumps up is leading brand with sales 26% brands among the
brand

• In the survey it is found that in gacchibowli , hitch city there is a lot of chance
to develop business

• It is found that major survey was focused on service industry to make

horizontal expansion of coca cola

• It is found that there is a lot of chance in gaccchi bowli, hi-tech city to make
expansion

• Through the research it is found that boards are best display for outlets

• Researchers found that coca cola is no one in brand customer demand more
equity, brand equity is better measure of firms performance

• Researcher found that gap between demand and supply is not good

57
 SUGGESTIONS

The following are the some suggestions that can be implemented to increase the
customer satisfaction and the profitability of the company for the horizontal expansion of
coacola

• Supply distribution should improve in area like kukatpally, gachhibowli,

• Training should be given to encourage marketers to promote coke at new areas
where there is not yet competitors involved
• Overall services should be improved for getting more sales and being remained
the market leader.

58
 • They should deepen the partnership arrangement with suppliers and distributors
and make them feel as a part of the company.
• At every retail outlet there is limited products of coke product line, so the
distributor should supply every coke product line

CONCLUSION

Every thing in this world is made to utilize properly but it should be reach at the proper
person or to the proper utilized areas. Otherwise the value added to those things became
in vein.
As there is a proverb that,

“Far From Eye, Far From Heart”

Thus marketing role play a very important role in achieving the objectives of a company.
Undoubtly, value utility is created by the manufacture of product or service but time and

59
place utilities are created by marketing role. According to Drucker, “both the market and
the distribution channels are often more crucial than the product”. They are primary: the
product is secondary. In an economy like that of India, where marginal shortages can
lead to disproportation distortion in prices, a dependable and efficient distribution system
is very much essential. The distribution system creates a value added to all most all
products.

All from the above study not withstanding its restructuring efforts Pepsi is still far away
with its great competitor like COKE.

Chapter-6

BIBILOGRAPHY

60
BIBILOGRAPHY:

10 Feb 2009 ... project report on horizontal expansion of coca cola.... study on dealer
distribution network of cold rink with reference to banal beverages ...
www.scribd.com/.../A-PROJECT-ON-COCACOLA-COMPANY-IN-KANPUR-
PRIYANKA- -

Length: 15 pages double-spaced, plus executive summary, references [footnotes, How has
the role of the board of directors evolved at the Coca-Cola Company? Case: Cellulose
Arauco: Forward integration or horizontal expansion? ...
www.beyondgreypinstripes.org

Title and reference. Guidelines on the assessment of horizontal mergers under..... face
binding capacity constraints and the expansion of capacity is costly(45) ...... (93)
Commission Decision 98/327/EC in Case IV/M.833 - The Coca-Cola ...
eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX...

Horizontal integration takes advantage of the closeness to foreign markets and ... be a
mixture of involuntary (defensive) horizontal expansion and delocalization FDI, ... It
owns 40% of all seven bottling and distribution Coca Cola plants in Turkey. ....
References. AK Party (2003a). "AK Parti Programi" ("AK Party ...
www.allbusiness.com/legal/international..

Two cases relate to Coca-Cola taking over its bottlers and ... Horizontal M&As have
been classified further by major motive underlying the deals. ..... References. Beena, P.L.,
1998, 'Mergers and Amalgamations: An Analysis of the ... Export-expansion and
Innovation in Host Countries, London and New York: Routledge ...

Low-rise development and horizontal expansion to accommodate future growth. .....

India, IBM, GE Capital, HCL, Bharati Telecom, Coca Cola, PepsiCo, etc. ...
REFERENCES. Association of Urban Development Authority (2003) Land Policy for ...
www.isocarp.net/Data/case_studies/722.pdf

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determined by the Commission with reference to the relevant product market or the ...
relevant product will include both Pepsi and Coca cola. ... differences, and other factors
that impede entry or expansion of output. A variety of ..... Horizontal Merger Guidelines.
†. For. Competition Commission of India (CCI) ...
www.competition-commission-india.nic.in

By Hon'ble Prime Minister of India, Dr. Man Mohan Singh on 25 th. April, 2008. ... This
allows the horizontal structure to have critical expansion..... Reference Service. •
Reprographic Facility.... Hindustan Coca Cola Beverages ...
ccb.nic.in/ccb2008/PIsProfile/DJT.pdf

TEXT BOOK:

Consumer Behavior K.K.Srivastava and S. Khandai

Marketing Management Kotler and Keller

RESEARCH PAPER:

News & Magazine

Indian Journal of Marketing, May 2003, Number-5

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