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Market Share of Coca-cola

Market Share of Coca-cola

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Published by Madan Mishra
market share and product visibility
market share and product visibility

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Published by: Madan Mishra on Feb 28, 2011
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TABLE OF CONTENTS

CHAPTER-1 ……………………………………………05-09

• Objective of study

• Scope of study

• Executive Summery

CHAPTER- 2……………………………………………10-43

• Introduction

• Industry Scenario & Company Profile

• Product Profile

CHAPTER-3……………………………………….…...44-62

• Research methodology & Sample design

• Factor analysis

• Data Analysis

• Hypothesis Testing

CHAPTER- 4……………………………….…………..63- 66

• Findings

• Suggestions & Recommendations

CHAPTER- 5………………………………….………..67-69

• Limitation of the study

• Conclusion

[1]

CHAPTER- 6…………………………………………..70-79

• Bibliography

• Annexure

CHAPTER-1

[2]

OBJECTIVES OF THE STUDY

The survey was conducted at Aishbagh region in Lucknow keeping following
objectives in view:

The survey was done to know the current status of activation element of
coca cola in the outlets.

To know the effect of the activation elements of coca cola in market.

To increase incidence through effective utilization of activation elements of
coca cola in the outlets.

To ensure the visibility of coca cola products in the outlets.

To find out the present status of Coca-Cola brands in the retail outlets.

[3]

SCOPE OF THE STUDY

This study has been done at Aishbagh region in Lucknow only. During the
study I went through different aspects. The study would be only a drop in the
ocean that can help to understand the current status of activation elements of
Coca-Cola in retail outlet.

The study can be conduct on the national basis also with large sample size &
sufficient time by taking feedback of many retailers which sell Coke
products.

There are some important aspects of this study which are as follow

This study will help to the company to know about their new concepts position
in the market.

This study will help the company also to know about its promotional
activities.

Through this study company will know about the visibility of its products in
the market

During my project I came to know about coke market share in twin cities.

This study will help the company to increase the sales through effective
utilization of activation elements.

[4]

During my project I came to know about Pepsi-Co Marketing strategy that is
the biggest competitor of Coca-Cola.

EXECUTIVE SUMMARY

Selling the product is not as important as awareness about the product. Awareness
creates the demand itself. To spread the awareness of the products companies carry
out some promotional activities through Television, Radio, News paper, Magazines,
Exhibition, Posters etc. This plays a key role to spread the awareness about the
product to the public or target customer. In soft drink industry promotion participate a
very crucial part. Every soft drink company bring into play promotional activity to
promote their product in the market. In soft drink industry Coca- Cola enjoys the
biggest soft drink company in the world.

This era is the era of competition. All the companies are competing with each other.
They are using different promotional tools and technique to be the market leader. In
beverage industry there are two major players Coca-Cola and PepsiCo. where Coca-
Cola have no.1 position in the world as well as in India. Company wants to grasp
more market share, for that purpose company have launched new sales promotion
concept recently in the market. According to this concept company provides some
tools like Flange, table top, Ariel mobile hanger, three tier racks etc. to the retail
outlet to display the product in outlets. And retailers have to maintain these red
elements with coke products in outlets. This helps in increasing the sale of the
products.

[5]

Market provides a key to gain actual success only to those companies which match
best to the current environment i.e. “imperative” which can be delivered what are the
people needs and they are ready to buy at the right time without any delay. It is
perfectly true but this also depends on the availability of good quality products and
excellent services, which further attract and add a golden opportunity for huge sales.
This also depends on the good planning approach and provide ample opportunity plus
sufficient amount of products for sales in the coming next financial year.

This report introduces a brief study of promotion tools &technique of Coca-Cola for
retailers. The study report will provide an opportunity to know retailers psychographic
needs, it may provide an opportunity to the Coca-Cola to frame a good future plan to
satisfy maximum needs, taste preferences of the retailers and established its guiding
role in the market of Aishbagh region Lucknow.

An Analysis report provides detailed information about prevailing status of
promotional tools of company in the outlets. And which channels need to focus more
so that company can meet with its desired destination. Thus the company has to
prepare itself to meet the market challenge by making adjustment in its new strategy
and promotions activities.

[6]

CHAPTER-2

[7]

INTRODUCTION

This project is made on the project title “MARKET SHARE AND PRODUCT
VISIBILITY OF COCA-COLA SOFT DRINKS
” The purpose of this project is to
know the current status of activation element of coca cola in the outlets as well as to
provide the elements to those outlets which they don’t have. These are the
promotional tools of coca cola which are being used to promote sales of coca cola
products. By providing these promotional tools the company wants to display coke
product in the outlet and make aware about its new as well as existing product to the
population. These promotional tools are very helpful to increase the sale. In this
modern era promotion plays a key role to boost the sale. Therefore every soft drink
company is taking interest in promotional activities to increase the sale. Consumption
of soft drinks has increased tremendously in India. Every age of group like it, now
days it become a household necessary item. In field of marketing many kind of
surveys are conducted by Coca-Cola team time to time. This is end & last feedback
for any kind of organization. By the specific survey, Coca-Cola organization wants to
know about the right picture of market. This work study provides extensive
information about the position of company’s brand and its promotional tools in the
outlet.

[8]

INDUSTRY SCENARIO AND

COMPANY PROFILE

SOFT DRINK INDUSTRY IN INDIA

INTRODUCTION

The Indian Soft-Drink Industry is a 3500 crore rupee Industry comprised of
consumer’s throughout the country, and of all ages. The industry has been comprised
of all Indian Soft-Drinks manufactures and the multinational Coca-Cola up to 1976.

From 1976 to 1989, the industry only comprised of Indian manufacturers namely,
Parle, Campa-Cola and Dukes. Decades of 90’s have brought changes in Government
Policies of liberalization, which has helped user in two huge American Multinational
Pepsi-Cola international and Coca-Cola.

THE CHRONOLOGY OF SOFT DRINK SCENARIO IN INDIA

1977

:- Refusing to dilute its equity stake, Coca-Cola winds up its operations in the

country.

[9]

Thums-Up from Parle and Campa-Cola from Pure Drinks launched.

1986:-

An application for a soft drink cum snack food joint venture by Pepsi. Voltas
and Punjab agro is submitted to the Indian Government.

1988:- Final approval for the Pepsi food limited project granted by the Cabinet
committee on economic affairs of the Rajeev Gandhi Government.

Coca-Cola South Asia Holding Incorporation of the U.S. files an application
to manufacture soft drinks concentrate in Noida (Delhi) free trade zone.

1990:-

Coca-Cola and 7up launched in limited market in North India. The
Government clears the Pepsi Project again but with the brand name changed to Lehar
Pepsi.

Simultaneously, it also rejects the application of Coke. Citra hits the market from the
Parle Stable.

1991:- Britco food files an application before FIPB to set up a new 50 crore facility
in Maharashtra. Pepsi extends its soft drink reach on national scale. Products launched
in Delhi and Bombay.

Britco foods application cleared by the FIPB, and Pepsi start initial
negotiations for a strategic alliance but talks break off after a while.

1993:- Pepsi launches Teem and Slice to counter Limca and Maaza respectively
from Parle. Pepsi captures about 30% market share in about two years.

Coke files an application for a 100% owned soft drinks Company with FIPB,
Decides to part ways with Rajan Pillai. The Government clears the Coke
application in record time.

Voltas pulls out of the Pepsi Food Limited joint venture. Pepsi decides to
buyout the Voltas share and raises its equity to 92% Report of Coke Parle joint
gain strength.

[10]

Pepsi launched 1 liter bottles in Pepsi-Cola, Mirinda and Teem flavors.
Sweeps off the 100ml segment over Pure Drinks.

Coca-Cola buys out Parle and major leaders of the market, Ramesh Chauhan,
becomes a part of the Coke game plan.

Fountain Pepsi launched in the Northern part of India.

Coca-Cola hits the Indian in 300 ml at the price of 250 ml. Equity 100% for
Coca-Cola.

Pepsi jump up in to Mineral Water name Aquafina.

2000:- Coca-Cola Indian has registered a growth of 18th percent in its net sale
during the first quarter of the current fiscal year.

Hrithik the burning sensation of Bollywood is hired to advertise Coke is very
effective.

2001:- Coca-Cola upgraded from 1.5 ltr. to 2 ltr.

HISTORY OF COCA-COLA

This history begins in Atlanta, Georgia on May 8, 1886, when a pharmacist
called Dr. John Smith Pemberton first mixed Coca-Cola in his back yard. This
formula, which was made from carbonated water, cane sugar syrup, caffeine, extracts
of kola nuts and cola leaves, was brought to the nearby Jacobs’ Pharmacy where it
made its Debut as a soft drink the same day, selling for only 5 cent. His bookkeeper
named this drink “Coca-Cola” after the first two ingredients and the same distinctive
script he wrote it in is the same logo they use to this day.

[11]

In January 1893 Coca-Cola was registered with the U.S. patent office. Later
on in 1915 the Root glass company created the famous contour glass bottle
for Coca-Cola in 1915.

In 1917 Coca-Cola was found to be the world’s most recognized trademark
with a record of 3 million Coke’s sold per day. Unfortunately, John
Pemberton fell ill, and did not live to see his product’s success.

Sadly, in the first year of Coke’s existence, Pemberton and his partner only
made $50. Pemberton sold two third of his business in 1888 to cover his
losses and keep the business afloat.

He died later that year, and Mr. Candler, an Atlanta druggist, purchased total
interest in Coca-Cola for an unbelievable $2,300 in 1891. In 1891, Candler
and his brother formed the Coca-Cola Company.

EARLY GROWTH

In 1893 Candler registered Coca-Cola as a patented trademark. He also
responded to growing concern over the dangers of cocaine by reducing the
amount of coca in the drink to a trace. However, he kept some coca extract in
Coca-Cola so the name would accurately describe the drink. Candler only had
a patent on the name, and not the drink syrup that is, the drink’s base,
containing all the ingredients minus carbonated water.

He figured that keeping the Coca in his formula would legally allow the
company to distinguish its drink from imitations. Other companies also
produced soda drink made with cola nut extract. In particular, the Pepsi-Cola
Company would become Coca-Cola Company’s major competitor over the
next few decades.

[12]

Candler also spent more than $11,000 on his first massive advertising
campaign in 1892. The Coca-Cola logo appeared across the country painted
as a mural on walls; displayed on posters and soda such as calendars and
drinking glasses. In addition, Candler was the first person ever to use coupons
to gain customers for a product. He distributed flyers offering free soda
fountain glasses of Coca-Cola to people visiting his drugstore.

In 1894 the Coca-Cola Company opened its first Coke syrup production plant
outside of Atlanta, in Dallas, Texas. That same year a candy storeowner in
Vicksburg, Mississippi, installed bottling machines and produced the first
bottled Coke. It had previously been sold only at soda fountains. By 1895 the
drink was sold in all U.S. states and territories.

In 1899 lawyers Benjamin Thomas and Joseph Whitehead of Chattanooga,
Tennessee, bought the exclusive right to distribute Coke syrup to bottles
throughout most of the country for only on dollars, at the time, Candler saw
little profit in bottling and was more than willing to give up that part of the
business.

In 1915 the Root Glass Company created a couture glass bottle for Coke, its
design based on the curvature of a coca bean. This bottle design became a
Coke trademark worldwide. The same year, Candler retired from the
company, passing it on to his children and moving into polities. He was
elected mayor of Atlanta in 1916.

In 1919 the Candler family sold Coca-Cola to businessman Ernest Woodruff
of Columbus, Georgia, for $25 million. Woodruff son, Robert, was elected
company president in 1923. Robert Woodruff was a skilled marketer, and he
put more of the company’s resources into market research than manufacturing
Coke.

WAR TIME DEVELOPMENT

[13]

During World War II (1939-1945), Woodruff also boosted Coke’s popular
image in the United States by pledging that his company would provide Coke
to every U.S.

soldier. The company did not limit itself, however, to only doing business that
would increase its success in America. In the period leading up to the war,
between 1930 and 1936, it had set up a division of the company in Germany,
and it continued that

venture during the war. It recreated its image as a German company and
allowed the Germans to produce all but two, secret, Coca-Cola ingredients in
their own factories.

In 1941 the German company’s president, Max Keith, developed Fanta orange
soda using orange flavoring and all the German-made Coke ingredients. The
Coca-Cola Company’s wartime efforts helped it expend its global market,
often with the economic support of the U.S. government.

By the end of the war in 1945, it had established 64 overseas bottling plants.
The same year the company registered a patent on Coca-Cola’s popular
nickname, COKE.

POSTWAR GROWTH

In 1955 Robert Woodruff retired as the Coca-Cola Company’s president.
Candler and Woodruff are remembered as the two most important figures in
the company’s early growth, both for their contributions to the company and
their considerable fortunes donated to the city of Atlanta. After Woodruff
departure, the company began to diversify by producing new products,
acquiring new business, and entering new international markets.

In 1960 the Coca-Cola Company purchased the Minute Maid Corp. producer
of fruit juices and began offering Coke in cans. Between 1960 and 1963 it

[14]

also launched four new soft drink in United States: Fanta, an orange soda;
Sprite, a lemon-lime soda; Diet Cola; Diet grapefruit-flavored soda. In 1964
the company acquired the Duncan foods crop. In 1967, it created the Coca-
Cola foods division by merging its Duncan and Minute Maid operations.

In the late 1960s, Coca-Cola faced difficulties in some of its foreign markets.
When the company built a bottling plant in Israel at the outset of the Arab-
Israel War, the governments of all Arab League nations banned the
production and sale of Coke. A year later the company withdrew from its
markets in India when that country’s

government requested that Coca-Cola reduces its equity in joint ventures to
40 percent. The company refused to relinquish so much control over those
operations.

In 1977 Coca-Cola began packaging Coke and other drinks in two-liter plastic
bottles. The popularity of these large bottles grew over time, and their sales
earned the company new project, primarily in small specialty and
convenience stores.

In 1982 the company introduced Diet Coke, which soon becomes the best-
selling diet soft drink in the world. Also in 1982, Coca-Cola purchased the
motion-picture company, Columbia Picture Industries, also known as Tri-star
Pictures, for almost $700 million. Two year later, the company sold off its
Columbia holdings and other media acquisitions to Sony Corporation for over
$1.5 billion.

By 1984 Pepsi-Cola had gained on Coke’s previous domination of the U.S.
market to the point that the two had almost equal sales. In an attempt to return
market dominance, the company attempted the first-ever reason of the
original Coke recipe. The American public largely rejected New Coke, and so

[15]

the company quickly returned to also producing the old recipe under the name
Coca-Cola classic.

RECENT DEVELOPMENTS

In 1986 The COCA-Cola Company consolidated all of its no
franchised U.S. bottling operating as Coca-Cola Enterprise, Inc. The new
company began acquiring independent bottling companies, a venture that
grew into the world’s largest bottle of soft drinks by 1988, while Coca-Cola
Enterprise distributes over half of all Coca-Cola products in the United States,
small franchises businesses continue to bottle can and distribute the
company’s drink worldwide.

In 1987 The Coca-Cola Company was fisted in the prestigious
Dow Jones Industrial Average index of stock market performance. Its stock is
traded on the New York Stock Exchange. Coca –Cola and Pepsi Company
products occupied nine of the top ten spots in the U.S. soft drink market in
themed-1990s.Worldwide, Coca-Cola ranked first in soft drink sales, and the
company earned almost 80 percent of its profits from international sales.

OVERVIEW ABOUT COCA-COLA

[16]

SYNOPSIS OF COCA-COLA IN INDIA

The Coca-Cola Company entered India in the early 1950s. It set up four bottling
plants at Bombay, Calcutta, Kanpur and Delhi.

In 1950 as there were negligible companies in Indian market therefore Coca-Cola did
not face much competition and they were accepted in Indian market more easily.

By the end of 1977 Coca-Cola had captured more than 45% of market share in India.
Then Coca-Cola left India following public disputes over share holding structure and
import permit.

As per FERA REGULATION the company was required to India close operation by
May 5, 1978 yet strongly enough the company’s operation come to end in July 1977.

In October 1993, Coca-Cola returned to India after 16 years of absence with the
slogan “Old waves have come to India again” First launched in HATHRAS near
AGRA HOME of the famous TAJ MAHAL. At this time Parle was the leader in soft
drink market and had more than 60% of the total market share in soft drink Coca-Cola
joined hand with Parle and strategic alliance with Parle export give the company
instant ownership of the nation top soft drinks brands Thums-Up, Limca, Citra, Gold
Spot and Maaza access to Parle extensive 62 plant bottling network and a base for the
rapid introduction of the company’s international brand by striking a $40 million deal
with Parle Coke almost a clear sweep and made it goal as “To become an all occasion
drink not a special treat beverage”

Every person who drinks a coca-cola enjoys moment of refreshment and shares an
experience that millions of others have savored. All of those individual experience
combined have created a worldwide phenomenon – a truly global brand.

The Coca-Cola Company, nourishing the global community with the world largest
selling soft drinks since 1886, returned to India in 1993 after a gap of 16 years giving
a new Thums up to Indian soft drink market.

[17]

In the same year, the company took our ownership of the nation’s top soft drink
market brands & bottling market. No wonder our brands assumed an iconic status in
mind of consumers. Coca-Cola serves in India some recalled brands across the world
including name such as Coca-Cola, diet coke, Sprite, Fanta, Thums-up, Limca, Maaza
& Kinley (packaged drinking water).

The Business system of coca-cola in India directly employs approximately 6,000
people, & indirectly creates employment for many more related industries throw our
wash procurement, supply and distribution system.

The vast Indian operations comprise 25 company’s owned bottling operations & 24
franchise owned bottling operations, apart a network of contract packers also mfg. a
range of the product for company. On the distribution front, 10 tone trucks, open-bay
three wheelers that can navigate the narrow alleyways of Indian cities, ensure that our
product available in each corner of the country.

The coca cola is responsible for the mfg. distribution & sales of product across the
country. A career in coca-cola is truly one kind of experience. Come @ Coca-Cola
and taste the life with enjoyment.

MARKETING STRATEGY OF COCA-COLA

[18]

Coca-Cola is using the following marketing strategy to reach its target customer and
to grasp more market share in India.

Focus on availability of products in market.

Coke products visible for consumers.

More focus in rural area.

Extra focus on monopoly outlets.

Aggressive rural area advertisement.

Social festival in rural areas.

More focus on villages.

Focus on availability of products in outlets

Distribution of product according locality.

Regular market vigilance by market developer.

Focus on availability of products in market.

Coca-Cola works on dikhega to bikega philosophy. This is the main formula of the
marketing strategy of each company. So availability of product in the market is clear.
For this reason market developer daily come in market to check their product
availability.

Focus on availability of products in outlets.

[19]

There is big difference between the availability of products in market & outlets. Coca-
Cola want that their product displayed in each outlet in market so it is important that
the product first available in market after than it put on outlets.

Focus on visibility of coke product in outlet

The aim of Coca-Cola is that its product should be visible for the customers so
company gives to retailers racks so many display items. Now a days the company is
giving visi-cooler to retailers for visible their chilled product in market for more sales.

More focus in rural area.

The rural market is a significant part of our sales promotional discount scheme which
is enabling retailer’s link with our product.

In 2000 the Coca-Cola India spokes women Nantoo Banerjee said that “The real
market in India is the rural market. If u can crack it, there is tremendous potential.”
CCI begin focus on rural areas after 2000 in order to increase volumes. This decision
is giving a huge size & potential market to company. It is clear that CCI would have
shifted its focus to rural market.

THANDA” Goes to rural

In early 2002 CCI launched a new advertising campaign for attract more rural
consumers. The aids with India leading Hollywood star Amir Khan with movie of
lagan. The tag line of aid is (Thanda Matlab Coca-Cola)

Regular market vigilance by market developer

To know the position of Coke’s product in the market coca-cola appoint some
executive those go in market & check availability, visibility of product, take care
companies assets, check visicooler and talk to shopkeeper & take feedback about their
product.

Distribution of product according locality

[20]

.Coca-cola Company distributes their schemes according to area. Area or place where
soft drinks sold in a large manner, on those place company gives good schemes to
shopkeeper and retailer. Place like railway station bus stand are consider in this
category and place which have low selling where company gives small schemes to
the shopkeeper.

Extra focus on monopoly outlets

Outlets which only sales coca-cola product and gives good sale to company are
consider in this category company gives extra schemes, discount and other gift to
these shops and tries to keep them happy and make long relationship. Problem of
these kinds of outlets resolve as soon as possible.

Aggressive advertisement

Coca-cola use the concept of aggressive advertises for sales promotion. Company
introduces different schemes and advertises them with electronic and print media.
These advertisements build Brand image and establish awareness. Brand ambassador
play an important role. Brand ambassador encourage the today youth to trust their
instincts, influence them. Successful advertisement campaigns like “Taaza mango,
maaza mango” and “Botal mein aam, maaza hai naam”. Help lot to make market
image of maaza. Coca-cola advertising came again Jo Chaho Ho Jaye & Life Ho Toh
Aisi were very popular & had entered in youth vocabulary. In 2002 company
launched the campaign “Thanda Matlab Coca-Cola” which is sky rocket the brand to
make. Coca-Cola lunched so many advertising for rural market capture Amir Khan’s
aid “Oye soniyo Thanda piyo”

Social festivals in rural areas

Coca-Cola Company time to time introduced rural social festival. In 2007 company
launched JALASA programmed in so many rural areas like RINGUS, RENWAL,
CHOMU, PHULERA, for take attention of the consumers.

Focus on villages

[21]

Now coca-cola considers more on villages after semi urban areas. Company is making
now a days strategies for villages because they know India leave in Villages.

DISTRUBTION SYSTEM OF PRODUCTS IN MARKET

Distribution of products is main point of the marketing strategy of the companies.
How the product distribute in market as much as possible. Coca-Cola India distributes
its product in market from its warehouse in two types.

1. Direct route.

2. Indirect route.

DIRECT ROUTE

Where company supply its products in market by company route or its agent route by
company owned delivery vans. In Lucknow City Company have direct route.

INDIRECT ROUTE

Indirect routes are those in which Coca-Cola products are supplied to its distributers
appointed in different areas. Then distributers distribute products in market by their
own tempo or vehicle. Total number of indirect routs in Lucknow rural region is more
then 100.

PROMOTION BY THE COMPANY

All advertisement expenditure is incurred by coca-cola India, but only D.P. Board,
wall painting, S.G.A.’s etc. Company spends on it around 8-9 % total sales company
invested 305 crore rupees in advertisement Budget.

Radio.

[22]

T.V.

Hoardings.

Road signs.

Sticker.

Neon light.

Banners.

Newspaper.

Magazines.

Exhibition.

Posters.

Sponsoring local events.

ADVERTISEMENTS TARGETED BY COKE

To target various consumer segment of soft drink different add featuring cricket star,
cine star, pop star have been created.

1. Lisa Ray (famous model) in a very interesting add which featuring him bathing
with sprite having a catching line “Sprite bujhaye asli pyass baki sab bakwaas”.

2. Another cola drink from coke i.e. “Thums Up”.

3. Fanta advertisement showing children having lines “Bold Ho Jao”

[23]

4. A family giving new look to Maaza “Taaza Mango”.

5. Amir Khan in the advertisement on Mini Coke it is very interesting and Romantic
advertisement.

6. Diet Coke the exiting adds. On the pool with fall swing calling “Taste the Power of
One Calorie”.

7. Amir Khan & Aishwarya Rai (both cine stars), which targeted younger generation.
This advertisement contained imagery of rugged and romantic for 330 ml of coke
theme “Coca-Cola Ho Jay”.

8. Limca leaving its old image of “Lime-n-Lemoni” drink has been shown as in the
advertisement featuring Shaif Ali Khan, a drink that could just change the mood at
time of disappointment lines. “Gala Gaya Sookh Limca Key Liye Ruk”.

SALES PROMOTION TECHNIQUES OF COMPANY

Good Advertising.

Effective Incentive Policy.

Quality.

Wide & Deep Distribution System.

Attractive packaging.

Allotting SGA’S (Refrigerator, Chest cooler, Table Umbrella, and Chairs etc.)
to retailers.

Decorating Retailers shop by display board, dealer’s board etc.

CRITERIA FOR PROVIDING FREE CHILLING EQUIPMENTS

[24]

With every 1-2 crates purchased daily or alternatively an icebox is provided.

For an average consumption of 5-6 crates a visi-cooler of 4crates.

For a purchase of 7-8 crates daily visi-cooler 7 crates.

If purchase exceeds 8 crates, then 9 crates visi-cooler or deep fridge is provided.
With each chilling equipment, one stabilizer is provided it may be of 1 KV or 5 KV

SWOT ANALYSIS OF COCA COLA

STRENGTHS

1. Heavy investment in both infrastructure and sales promotion campaigns.

2. Most valued brand in world

3. Improved quality control.

4. Latest technology.

5. Modified and attractive packaging

[25]

6. Strong advertising network.

WEAKNESS

1. Entire infrastructure needs a face-lift.

2. Unskilled labor.

3. Tight case policy.

4. Fear of retrenchment among the workers.

OPPORTUNITIES

1. Wide market.

2. Good rural market.

3. Direct distribution.

THREATS

1. Stiff competition.

2. Illegal distribution done by some distributors.

3. Changing of consumer preference.

MISSION,VISION & VALUESOF COCA-COLA

MISSION OF COCA-COLA

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.”

[26]

Mission of coca-cola in India is to create consumer products, services and
communications customer’s service and bottling system strategy processes and tools
in order to create competitive advantage and deliver superior value to:

Suppliers as an opportunity to make reasonable profits when creating real
value added in an environment of system wide teamwork, flexible business
system and continuous improvement.

Consumers as a superior beverage experience.

CCI associates as superior career opportunity

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

drinks.

Bottlers as an opportunity to make reasonable to grow profits and volume.

TCCC as trademark enhancement and positive economic value added.

Indian society in the form of a contribution to economic and social
development.

[27]

VISION OF COCA-COLA

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 and also provides exceptional strategic
leadership in the Coca-Cola India System resulting in consumer and customer
preference and loyalty through Coca-Cola’s commitment to them, and in a highly
profitable Coca-Cola corporate branded beverage system.

People: Establish a great place to work where people are inspired to the
Best they can do.

Planet: Being a responsible global citizen that makes a difference.

Profit: Maximize the return of shareholder

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

Portfolio: Bringing to the world a portfolio of beverage brands that
anticipate and safely People desire & need.

[28]

Partners: Nurturing a winning network of partners & building a mutual

loyalty.

VALUES OF COCA COLA

“Our values serve as a compass for our action and describe how we
behave in the world.”

Accountability: If it is to be, it's up to me.
Collaboration: Leverage collective genius.
Integrity: Be real.
Diversity: As inclusive as our brands.
Quality: What we do, we do well.
Passion: Committed in heart and mind.
Leadership: The courage to shape a better future.

[29]

PRODUCT PROFILE OF

COCA-COLA

There are nine brands of coca-cola in India and they are differ in taste, flavor and
also in their colors.

1. COKE

Coke is considered to be a cola drink. It is generally preferred by all sections of
consumer. This is a cash cow brand for the company in terms of sales revenue.

The world’s favorite drinks, the world’s most valuable brands, The most recognizable
word across the world after Coke, Coca-cola has truly remarkable heritage from a
humble beginning in 1886 .It is now the flagship brand of the largest manufacturer
marketers and distributors to non-alcoholic beverages in the world.

In India Coca-Cola was the leading soft-drink till 1977. When Govt. policies
necessitated its departure, Coca-Cola made its return the country in 1993 and made
significant investment to ensure that the beverage is available to more and more
people even in the remote and inaccessible part of the nation.

[30]

2. THUMS-UP

Thums-up is also considered to be a cola drink. It is hard in comparison to coke. It is
preferred by all section of consumers but especially to teen-agers. It is a big source of
company to cash its publicity. Strong Cola taste exciting personality.

Thump up is a leading carbonate soft drink and most trusted brand in India originally
introduced in 1977,Thum-up was acquired by the Coca-Cola company in 1993
.Thump-up is known for its strong fizzy taste and its confident mature and uniquely
masculine attitude . This brand clearly seeks to separate the men from boys.

[31]

3. LIMCA

Limca is considered to be lemony in taste, and comes under the category of cloudy
lemon because of its color, which is similar to that of clouds. It has to yield good sales
revenue. It is generally preferred by Children & Women. “Limca is Lemoni Limca”

Lime ‘n’ Lemoni,
the Drink that can
cast a tangy
refreshing spell on
anyone
anywhere .Born in
1971 .Limca has been the original thirst choice of millions of

consumer for over 3 decades.

The brands has been dispelling healthy volume growth on year and Limca continues
to be the among the leading flavor soft drink in the country the success formula. the
sharp fizz and Lemoni bite combined with the single minded positing of the brands as
the ultimate refresher has continue strengthen the brands franchise. Limca energizes
refreshes and transform divine into the zingy refreshment of Limca and walk away a
new person.

4. FANTA

FANTA ORNAGE, It is orange flavor & preferred by Children & Women. Internally
Fanta the “orange” drink of the Coca-Cola Company is seen as one of the favorite
drinks since 1940’s Fanta entered the Indian market in the year 1993.

[32]

Over the year Fanta has occupied a strong market place and is identified as “the fun
catalyst” perceived as a fun youth brands, Fanta stands for its vibrant color, tempting
taste and tingling bubbles that not just uplifts feeling but also help free sprite thus
encouraging one to indulge in the moment. This positive imagery is associating with
happy, “Cheerful and special times with friends”.

5. MAAZA

MAAZA MANGO, in Maaza cold drink no gas only based on juice. It is a non-
aerated soft drink. It is preferred mostly Children & Women. Maaza was launched in
1976 .There was a drink that offered the same real taste of fruit juices and was
available through the year In 1993, Maaza was acquired by Coca-Cola India Maaza
currently dominates the fruits drinks category.

[33]

Over the year brand MAAZA has become synonymous with mango .this has been the
result of such successful campaigns like, Taaza Mango, Maaza Mango and Botal
Mein Aam, Maaza Hain Naam. Consumer regards MAAZA as wholesome, natural
fun drinks which delivers the real experience of fruit.

6. KINLEY SODA

This is a soda drink. It has no color and no flavor. It is generally used with alcohol
and used by adults.

[34]

7. KINLEY WATER

“Boond Boond Mein Vishwas”

Water a thirst quencher that refreshes, a life giving force that washes all the toxins
away. Ritual purifier that cleanses, purifies, transforms, water the most basic need of
life the very sustenance of life, a celebration of life itself.

The importance of water can never be understated particularly in a nation such as
India when water governs the lives of the million, be it part of everyday ritual or as
the monsoon which gives life to the sub-continent.

KINLEY water understands the important and value of this life giving force KINLEY
Water thus promises water that is as pure as it meant to be water you can trust to be
truly safe and pure.

7. SPRITE

Sprite is a good product at cola and contains at lemon flavor. Worldwide SPRITE is
ranked as the No-5 soft Drink and is sold in more than 190 countries. In India
SPRITE was launched in year 1999 and today it has grow to be one of the fastest
growing soft drinks , leading the clear lime category .

[35]

Today SPRITE

is perceived

as a youth icon.

Why with a

strong appeal to

the youth

SPRITE has

stood for a

straight forward

and honest

attitude .It is

clear crisp
refreshing taste encourage influence them to be

true to who they are and to obey their thirst

9. MINUTE MAID

In Minute maid pulpy orange cold drink no gas only based on orange juice. It is a
non-aerated soft drink and market competitor of Tropicana Twister.

10.
GEORGIA COFFEE

[36]

During the journey of the company towards its vision, leading the beverage revolution
in India now even garam matlab coca-cola a hot new launched from coca-cola in
India.

Georgia quality tea and coffee served from state of the art vending machines is
positioned at tap into the nation’s biggest beverage category. Georgia Gold is
delicious tasting of fresh coffee; currently available exclusively at McDonald’s outlets
across the country Georgia Gold has driven the sales through the roof. The success
from hot beverage from Georgia Gold has resulted in extension into the cold category
with the introduction of ice tea and cold coffee.

[37]

CONSUMER CHOICE AT A GLANCE

Coca-Cola --------------------------- Mainly preferred by the Youngster & Kids.

Thums-Up --------------------------- Youngster.

Limca -------------------------------- Common Drink.

Fanta --------------------------------- Basically Preferred by Ladies and Kids.

Maaza ------------------------------- Also Ladies and Kids.

Sprite -------------------------------- Not clearly defines.

Kinley Soda ------------------------ Mostly those who consume liquor.

Georgia ------------------------------ Premium class people.

Minute Maid Pulpy ---------------- Common Juice

BRANDS TAGLINE

ThumsUp -

Taste the thunder

Cocacola

- Open happiness

Sprite

- Seedhi baat no bakwaas , clear hai

Limca

-

Fresh ho jao

Fanta

- Go bite

Maaza

asli aam ka maza

MMNF

ghar jaisa nimbu pani

[38]

BRAND AMBASSDORS

ThumsUp -Akshay Kumar

Cocacola -Aamir Khan

Sprite -Shahrukh Khan

Fanta -Genelia D’souza

Limca –Hritisha Bhatt

ADVERTISING

Advertising is a non promotion of goods & services by sponsor who can identified
and

Who has paid for his communication? Their purpose of advertisement is to sell
something goods or services, idea, person or place.

BRAND AMBASSDORS & TV COMMERCIALS

[39]

COLA WAR (neck to neck)

Bollywood rising stars Asin (Right) for PepsiCo’s Mirinda,Genelia D’souza
(Left) for Coca-Cola’s Fanta

Tennis star Sania Mirza for Sprite

[40]

Bollywood star Aamir Khan for Coke

Bollywood star Akshay kumar for ThumsUp

[41]

Bollywood superstar Shahrukh Khan new Brand Ambassador of Sprite

Hrishita Bhatt with Limca

[42]

CHAPTER-3

[43]

RESEARCH METHODOLOGY

Marketing research is the process of systematic design, collection of data, analysis
and reporting of data to specific marketing situation which an organization faces.

It is an activity which is done by organization for accomplishment of a particular
objective. Through this activity an organization find the specific reason of the
problem which organization face.

Marketing research got a vital role in decision making process by making available
right information, at the right time, and to the right person who involves in decision
making process. Thus it is the basic tool of marketing mix elements, like product,
place, price and promotion.

The research methodology is considered as a major part of the study that is being
conducted. It determines the strength, reliability and accuracy of the project.
Methodology will be considered as the methods used in research is selecting sample,
sample size, data collection and various tools for data analysis.

[44]

RESEARCH DESIGN

The issue of research has been defined in very much clear term, the researcher will
require to prepare research design that will describe the conceptual structure of whole
research.

There are four steps in the research process-

Identify the issues of the research.

Develop the research plan.

Implementation of research plan.

Interpreting the research reporting the finding.

There are two basic type of research design-

Exploratory Research (helps to determine the objective of retailers/clients).

Conclusive Research (it includes experimental and descriptive method).

DATA COLLECTION

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 red element concept
&scheme playing in the mind of retailer & consumers. During the research period I
collected data direct from retailers by survey. For proceeding further first of all we
should know something about data and what the different type data are-

[45]

TYPES OF DATA: There are two types of data-

1. Primary data.
2. Secondary data.

METHODS OF DATA COLLECTION-

Primary data collection: Primary data can be collected by three methods-

1. Observation

2. Experiment

3. Survey

But here, only surveys method of data collection is preferred which is very suitable to
reach the researcher motto.

A. Research instrument: Printed Questionnaire was used as the research instrument
to collect the required information.

B. Area of surveys: The survey was conducted at Aishbagh regionin Lucknow city.

SAMPLE DESIGN

Sampling unit: The retailer of Grocery shop, general store, betel shop, and medical
store was selected from different places of Lucknow.

Sampling size: 68 Outlets have been taken for conducting the report.

[46]

Type of sampling: there are two type of sampling.

A. Probability sampling.

B. Non probability sampling.

Probability sampling- It is also known simple random sampling. In this sampling
everybody gets similar chance to select as a sample unit.

Non probability sampling- In this sampling everybody gets not similar chance to
select as a sample unit. Example of non probability are cluster sampling, convenience
sampling, judgment sampling e t c.

Sampling procedure: Simple random sampling procedure was followed.

Sampling method: Data were collected by retailer survey. The retailers are directly
contacted and interviewed at their retail counter.

FACTOR ANALYSIS

R.E.D CONCEPT

R.E.D is the survey method that company started earlier. For the survey, Company
has hired the person from A.C. NIELSON one of the best survey company. This
survey gets done once in a month. R.E.D is the set of norms divided into outlet wise.

ABOUT THE R.E.D SURVEY

The survey named as R.E.D. (Right Execution Daily). The survey has been conducted
to check the cooler management, availability of products & activation of coca-cola in
various outlets.

[47]

The survey was based on the following steps: -

Firstly, I have to check the activation, which is a very important because
activation helps to boost the sales. Activation is done through boards i.e. glow sign.
DPS, Flanges and Combo boards. Mostly combo boards are given to the E&D outlets.
And these are very helpful in attracting the customers. Rack with header is provided
to the Grocery outlets.

Secondly, I have to check elements like table top, three tier racks, and ailed mobile
hanger which have been provided, are fully charged with coke products or not .

Then I have to find out that these elements are easily visible to the public or not.

MARKET SEGMENTATION MODEL OF COCA-COLA

Right Execution Daily (R.E.D) is the segmentation of outlets as Channel, Class, and
Income. Let us know what are the Channel, Class, and Income respectively.

Markets can be segmented along 3 lines- Outlet Volume, Locality Income, & Channel
cluster.

SEGMENTATION

CHANNEL CLUSTER LOCALITY INCOME

OUTLET VOLUME

Grocery

High

Diamond

Eating&Drinking

Medium

Gold

Convenience

Low

Silver

TYPES OF OUTLETS

[48]

CHANNEL TYPE-

Grocery:-

Outlets which primarily engaged in retailing of food and various household items, It
include neighborhood outlet stoking provisions, edible & general household items of
daily usages E.G., commodities like flour, pulses, rice & branded household items
like toothpaste, mosquito oil, soap etc

CHANNEL TYPE-

[49]

Eating and Drinking (E&D)

Outlets selling items to eat which are being cooked within outlet, made at the outlet &
possibility consume in outlet. They may have place of sitting. It includes
QSR/Bakery/MITIE Store/Restaurants/Bars/juice/soft drinks/ ice cream parlor/tea
soaps etc.

[50]

CHANNEL TYPE-

Convenience:-

It includes outlets which are small stores or shops generally accessible locally. These
are often located along side busy roads. It includes Chemists shop/STD booths/Pan
Bidi shops etc

E & D includes flowing outlets:-

Fast Food: - Self service with limited menu.

Pubs: - Outlets selling alcoholic beverages & snack items. It May be open till late at
nights or 24 hrs.

[51]

Dhabas: - Situated on roadside & market places catering cost effective Indian food.

Convenience includes:

Pan shop: - Semi- temporary kiosk located near the road side selling Cigarettes,
beverages and other confectionary items.

Outlet at petrol pump: - Convenience outlets selling top up items, may be open
till late at nights or 24 hrs.

Travel & convenience kiosks: - Permanent kiosks within the airports/
railways/ bus stand premises (inside or outside) selling only beverages or a food &
beverage kiosks.

PRE-SALE CONCEPT

This is the new concept that had started from the year 2007. In the Pre-Sale the
company takes order one day before and accordingly company delivers their products
for each route.

MARKET EXCUTION (Activation) STANDARDS OF
COCA-COLA

Standards for different types of outlets

ACTIVATION ELEMENTS FOR

GROCERY:-

3 Tier Rack.

1 Tier Rack.

[52]

Aerial Mobile Hanger.

Table Top Display.

Self Display

EATING & DRINKING-

Combo Element.

Menu Boards.

Menu card.

CONVENIENCE

Shelf Display

Table Top Rack.

Aerial Mobile Hanger

ESSENTAIL ELEMENTS FOR ALL CHANNELS

Price Strips.

Shelf Display

Cooler Door Tray.

G.S Board / DPS.

Bottle Neck Header.

Crate Wrap.

[53]

Non-Lit Flange.

Standee.

HYPOTHESIS TESTING

1) Hypothesis:

(A) Null hypothesis (Ho): The coke has more consumption then Pepsi.

(B) Alternate Hypothesis (H1): The coke has not more consumption then Pepsi.

(C) Let the level of significance is (α) = 5% in testing the hypothesis since the

Test is two tailed is Z=+-1.96

TEST FORMULA

Z= P1-P2

√PQ [1+ 1]

n1 n2

P= n1P1 +n2P2

n1+n2

Q= (1-P)

Where

P-Total population proportion of Coke & Pepsi

P1-Sample proportion of coke

P2-Sample proportion of Pepsi

n1- sample size of coke

[54]

n2- sample size of Pepsi

After calculated value is Z=1.34 which is less then calculated from the table

Z=1.96 hence null hypothesis is accepted.

CONCLUSION –The coke product is more consumption then Pepsi.

2)

Hypothesis

(A)Null hypothesis (H0 ):The market share of coke is higher than Pepsi.

(B)Alternate Hypothesis (H1): . The market share of coke is not higher than Pepsi.

(C)Let the level of significance is(α)= 5% which the hypothesis is tested.

FORMULA

Z = P*-P

√P(1-P)

n

P=Sample proportion

P*=Population proportion

n=sample size

The calculated value is less then value calculated from the table that is 1.96,

So the null Hypothesis is accepted.

CONLUSION- The Market share of coke is higher than Pepsi

3)

Hypothesis:

(A)Null hypothesis (H0 ):Presale is good for the company.

[55]

(B)Alternate Hypothesis (H1): Presale is not good for the company

(C)Let the level of significance is (α)= 5% which the hypothesis is tested.

FORMULA

Z = P*-P

√P(1-P)

n

P=Sample proportion

P*=Population proportion

n=sample size

The calculated value (1.56) is less than the value calculated from the table thatis 1.96
hence hypothesis is accepted.

Conclusion – Presale is good for the company.

CONCLUSION

RED is a worldwide project of COCA COLA Company. This project is playing a very
important role for the company. With the help of this project, sale of the company has
been increased. Because in this project there is one market developer who has to
ensure that Visi-cooler must be on prime location, all brands must available, all
brands must displayed in brand order i.e. COLOJK. All the activation elements like
warm display

DATA ANALYSIS AND INTERPRETATION

Graph-1: Outlet that have been visited.

[56]

TYPE OF OTLETS No. OF OUTLETS PERCENTAGE

Grocery

25

37%

Convenience

23

34%

E&D

20

29%

TOTAL

68

100%

Interpretation-

Through the above diagram we can know that out of 68 outlets how many outlets are
convenience, grocery and E&D outlets.

Graph-2: S.G.A. Status of outlets

Status

No. of Outlets

Percentage

Only Coca-Cola

35

51%

Only Pepsi

7

10%

Both

22

32%

Unknown

4

6%

[57]

Interpretation:

Through the above diagram we can see that on 51% outlets there is availability of only Coca-
Cola, While Only Pepsi is available on only 10% outlets. On rest 32% outlets the Pepsi and
Coca-Cola both are available. More than half part of market is totally covered by the Coke.

Graph-3 Glass Bottles (200-300 ml) [Soft Drinks]

S.No. Company

No. of Bottles

1)

Coca Cola

3555

2)

Pepsi

1070

[58]

Interpretation:

Out of total available cold drinks’ bottles (200-300 ml) in the market 77% are of Coke
and rest 23% are of Pepsi. It shows that product availability of Coke is so more than
the Pepsi.

Graph-4 Glass Bottles (200-300 ml) [Juice]

S.No. Brand

No. of Bottles

1) Maaza

1310

2) Slice

290

Interpretation:

In case of Juices the scene is too much in favor of Coke (maaza), it has covered 2% of the
whole juice segment in the market, while its close competitor Slice has only rest 18% of
market share.

Graph-5 Glass Bottle (200-300 ml) [Available in the
market]

S.No. Brand

No. of Bottles (in crates)

1) Coca-Cola

862

[59]

2) Pepsi

240

Interpretation:

Coke believes in dikhega to bikega so it has maintained the product availability n the
market. In case of bottles 78% Glass bottles in the market are of Coke and rest only
22% are of Pepsi.

Graph-6 Availability of Refrigerators

S.No. Type

No. of refrigerator

1) Coca-Cola VGA

29

2) Pepsi VGA

17

3) Coca-Cola OYA

7

4) Pepsi OYA

3

5) Owners

21

6) No freeze

9

[60]

Interpretation:

Here, it is found that out of 68 outlets Coke has provided 27 Visi-coolers and 7 simple
refrigerators. And on the other hand Pepsi has provided 17 visi-cooler and 3 Simple
refrigerators. they are also providing the warranty of those coolers. But the thing has
notices that there are 30 outlets where no coolers are provided 21 of them having their
own coolers and rest 9 is using Ice-Boxes.

Graph-7: Signage displayed on the outlets

Type

No of
outlets

Percentage

Coke

36

53%

Pepsi

8

12%

No signage

22

32%

TOTAL

68

100%

[61]

Interpretation:

It is shown in above chart that there are 53% outlets showing Coke Signage in front of
their outlets 12% showing Pepsi signage while 32% outlets are not having any type of
signage.

[62]

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