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PROJECT REPORT ON COCA-COLA COMPANY
SUBMITTED BY: • • • • • • MUTHU KUMARAN (94) NIDA MAJEED (103) RAGHAV KUMAR (125) RAHUL KALIA (126) RAHUL NAGPAL (127) SIMRAN KAUR PAHUJA (192)
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”
SU BMITTED TO: Kb sr
EXECUTIVE SUMMARY - PAGE 2 CHAPTER 1 - PAGE 4-6 CHAPTER 2 - PAGE 7-11 CHAPTER 3 - PAGE 12-63
INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE
COCA-COLA COMPANY - PAGE 13-17 GLOBAL MARKET SHARE OF COCA-COLA - PAGE 17-18 TRENDS AND FORCES - PAGE 19-22 POTER’S FIVE FORCES - PAGE 22-29
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”
PESTLE ANALYSIS - PAGE 29-33 SWOT ANALYSIS - PAGE 33-40 COCA-COLA INDIA - PAGE 41-42 PRODUCTS IN INDIA - PAGE 42-46 MARKETING MIX - PAGE 49-58 PESTLE ANALYSIS - PAGE 58-62 SWOT ANALYSIS - PAGE 60-62 RESEARCH METHODOLOGY DATA ANALYSIS SUGGESTIONS AND CONCLUSION
CHAPTER 4 - PAGE 63-68 CHAPTER 5 - PAGE 69-79 CHAPTER 6 - PAGE 80-82 BIBLIOGRAPHY - PAGE 83 ANNEXURE - PAGE 84-85
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”
This report has been prepared with a specific purpose in mind. It outlines the history and current scenario of the Coca-Cola Company globally and locally. The first part of the study takes us through the present state of affairs of the beverage industry and Coca-Cola Company globally. The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a detailed view of the tasks, which have been undertaken to analyze the market of Coca-Cola i.e. we have performed Competitive, PESTLE and SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of Coca-Cola India in order to identify areas of potential growth for Coca-Cola. We have also given a brief description of Trends and Forces that are affecting Coca-Cola Company globally. The main objective of this project report is to analyze and study in efficient way the current position of Coca- Cola Company. The study also aims to perform Market Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola. Another objective of the study was to perform Competitive analysis between Coca-Cola and its competitors. Apart from these
INTRODUCTION Page 5 . 1.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” objectives this study is also conducted to understand the Customer preferences towards various Coca-Cola products.
And counsel before every action Research is a human activity based on intellectual investigation and is aimed at discovering. MARKETING RESEARCH:Marketing research is the function that links the consumer. customer and public to the marketer through information used to identify and define marketing Page 6 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” INTRODUCTON Let reason go before every enterprise. and revising human knowledge on different aspects of the world. interpreting.
Cola Company began building its global network in the 1920s. the product that has given the world its best-known taste was born in Atlanta. fountain retailers and fountain wholesalers. analyzes and communicates the findings and their implications. Now operating in more than 200 countries and producing nearly 400 brands. syrups and notready-to-drink powder products. on May 8. distributors. The Coca. Coca-Cola Company is the world’s leading manufacturer. marketer and distributor of non-alcoholic beverage concentrates and syrups. designs the methods for collecting information. 1886. -Palmer (2000) INTRODUCTION TO COCA-COLA Coca-Cola. tea and coffee. It sells beverage concentrates and syrups to bottling and canning operators. generate. Marketing research specifies the information required to address these issues. the Page 7 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” opportunities and problems. used to produce nearly 400 beverage brands. and evaluate marketing actions. Georgia. In addition to this. it also produces and markets sports drinks. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates. refine. and improve understanding of marketing as a process. manages and implements the data collection process. monitor marketing performance. -American Marketing Association Marketing research is about researching the whole company’s marketing process.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money. more than any other consumer product. CocaCola. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment. from Montreal to Moscow.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world.a billion times a day. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks. From Boston to Beijing. that system is dedicated to people working long and hard to sell the products manufactured by the Company. The Company aims at increasing shareowner value over time. has brought pleasure to thirsty consumers around the globe. Page 8 . This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. For more than 115 years. to meet business goals and objectives. More than anything. thus increasing brand equity on a global basis. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2. INDUSTRY PROFILE Page 9 .
As a result. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. the Indian customer witnessed an increasing exposure to new domestic and foreign products through different Page 10 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” INDUSTRY PROFILE A BRIEF INSIGHT . distribution and customer service strategies to strengthen their position in the market. marketing. With the liberalization and growth of the Indian economy. the face of the Indian FMCG industry had changed significantly.THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG). most of the companies were forced to revamp their product. By the turn of the 20th century. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s.
such as television and the Internet.93000 cr. These changes had a positive impact. they generally sell in large numbers and so the cumulative profit on such products can be large. creating new product. Though the absolute profit made on FMCG products is relatively small. rapid urbanization. direct distribution. Unlike other economy sectors. such as automobiles. computers. Increased availability of retail space. making up 32% of the sector. A person may put off buying a car but he will not put off having his dinner. market. It is predicted that in the year 2010. Apart from this. because they generally satisfy rather fundamental. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. and airlines. The FMCG sector. distribution and service formats of the FMCG industry by focusing on rural markets. the FMCG sector will Page 11 . The main contributor. as opposed to luxurious needs. and qualified manpower also boosted the growth of the organized retailing sector. FMCG share float in a steady manner irrespective of global market dip. Unlike some industries. which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs. FMCG does not suffer from mass layoffs every time the economy starts to dip. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. is the South Indian region.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” media. social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. distribution and service formats. HLL led the way in revolutionizing the product. leading to the rapid growth in the FMCG industry.
in order to come up with better products to gain more consumers and satisfy the existing consumers. In-home consumption and out of home on premises consumption.e.e. Page 12 .0 BEVERAGES IN INDIA The beverage industry is vast and there various ways of segmenting it. Monthly Circular) A BRIEF INSIGHT . in which the players constantly innovate. The different ways of segmenting it are as follows: Alcoholic. Age wise segmentation i. beverages for kids.BEVERAGE INDUSTRY IN INDIA In India. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. Segmentation based on the amount of consumption i.143000 cr.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” be worth Rs. Fig 2. non-alcoholic and sports beverages. beverages form an important part of the lives of people. (Source: HCCBPL. Natural and Synthetic beverages. for adults and for senior citizens. high levels of consumption and low levels of consumption. so as to cater the right product to the right person. It is an industry.
purchase and consume. well-being or prestige relevant to the category. it could be observed that consumers perceive beverages in two different ways i. Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. These two perceptions are the biggest challenges faced by the beverage industry. for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. The beverage market has still to achieve greater penetration and also a wider spread of distribution. refreshment. taste.e. Page 13 . Consumer education is a must to bring out benefits of beverage consumption whether in terms of health. as a big opportunity. In order to leverage the beverage industry. Communication should be relevant and trendy so that consumers are able to find an appeal to go out. stimulation. It is important to look at the entire beverage market. beverages are a luxury and that beverages have to be consumed occasionally. relaxation. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” If the behavioural patterns of consumers in India are closely noticed.
COMPANY PROFILE Page 14 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 3.
To inspire moments of optimism and happiness. To create value and make a difference.. To refresh the world. VISION: Our vision serves as the framework for our Roadmap and guides every aspect of our business Page 15 . which is enduring.. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions...“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” COMPANY PROFILE MISSION: Our Roadmap starts with our mission.
we do well. Productivity: Be a highly effective.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” by describing what we need to accomplish in order to continue achieving sustainable. Partners: Nurture a winning network of customers and suppliers. People: Be a great place to work where people are inspired to be the best they can be. Integrity: Be real. lean and fast-moving organization. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Leadership: The courage to shape a better future. Quality: What we do. quality growth. it's up to me. WINNING CULTURE: Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Possess a world view. LIVE OUR VALUES : Our values serve as a compass for our actions and describe how we behave in the world. Accountability: If it is to be. together we create mutual. enduring value. Collaboration: Leverage collective genius. Get out into the market and listen. FOCUS ON THE MARKET: Focus on needs of our consumers. Passion: Committed in heart and mind. Page 16 . observe and learn. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Diversity: As inclusive as our brands. customers and franchise partners.
a drugstore in Columbus. WORK SMART: Act with urgency. optimism and fun. ACT LIKE OWNERS: Be accountable for our actions and inactions. originally as a coca wine called Pemberton's French Wine Coca.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Focus on execution in the marketplace every day. Reward our people for taking risks and finding better ways to solve problems. Pemberton responded by developing Coca-Cola. Georgia by John Pemberton. Learn from our outcomes -. Remain responsive to change. on May 8. Be insatiably curious. In 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains. Remain constructively discontent. a European cocawine.what worked and what didn’t. Work efficiently. essentially a non-alcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta. He may have been inspired by the formidable success of Vin Mariani. when Atlanta and Fulton County passed prohibition legislation. Georgia. BE THE BRAND: Inspire creativity. HISTORY OF COCA-COLA The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company. which were popular in the United States at the time due to the belief that carbonated water was good for the Page 17 . passion. Steward system assets and focus on building value. Have the courage to change course when needed. 1886.
The Coca-Cola Company (the current corporation). dyspepsia. Meanwhile. Georgia. C. However. Mullahy and E. By the time of its 50th anniversary. In 1892 Candler incorporated a second company.O. Margaret Dozier and Woolfolk Walker. 1894. while suffering from an ongoing addiction to morphine. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. Candler purchased exclusive rights to the formula from John Pemberton. the drink had reached the status of a national icon in the USA. Murphey. The same year. and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. in 1914. it was certified kosher by Rabbi Tobias Geffen. Its proprietor was Joseph A. Cans of Coke first appeared in 1955. So.O. and impotence. Mayfield. Bloodworth. By 1888.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” health. Mississippi. at the Biedenharn Candy Company in 1891. in the summer of 1888. John Pemberton declared that the name "Coca-Cola" belonged to Charley. neurasthenia. Dozier came forward to claim her signature on the bill of sale had been forged. after the company made minor changes in the sourcing of some ingredients. but the other two manufacturers could continue to use the formula. The first outdoor wall advertisement was painted in the same year as well in Cartersville. Pemberton claimed Coca-Cola cured many diseases. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. in order to force his two competitors out of the business. After both failed to catch on. A. including morphine addiction. headache.H. and in 1910 Candler had the earliest records of the company burned. three versions of Coca-Cola — sold by three separate businesses — were on the market. Coca-Cola was sold in bottles for the first time on March 12. Biedenharn. Candler set out to establish a legal claim to Coca-Cola in late 1888. In 1935. further obscuring its legal origins. Candler sold his beverage under the names Yum Yum and Koke. Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. The Page 18 . The first bottling of Coca-Cola occurred in Vicksburg. Pemberton sold the rights a second time to four more businessmen: J.C.
Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi. Coca-Cola Zero. effectively becoming parent bottlers. it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. the same sweetener currently used in Pepsi One. 2005. attempted to change the formula of the drink with "New Coke". On February 7. In 2007. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies. Benjamin F. On April 23.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” original bottles were Biedenharn bottles. or Coke syrup. but Coca-Cola management was unprepared for the public's nostalgia for the old drink. Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6. 1985. amid much publicity. proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. in Canada. marketed as "Diet Coke Plus”. Whitehead. as an over-the-counter remedy for nausea or mildly upset stomach. and zinc. 1985. the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose. but two entrepreneurs from Chattanooga. niacin. Asa Candler was tentative about bottling the drink. Tennessee. the name "Coca-Cola Classic" was changed back to "Coca-Cola. was and is sold separately at pharmacies in small quantities. In April 2007. very different from the much later hobble-skirt design that is now so familiar. 2005. 2005. B12. Coca-Cola. under the name Coca-Cola Classic on July 10. it announced another diet product. Candler never collected his dollar. The company gave in to protests and returned to a variation of the old formula. leading to a backlash. sweetened partly with a blend of aspartame and acesulfame potassium. Thomas and Joseph B. On March 21. but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. magnesium. Coke concentrate." Page 19 . On July 5.
Finally.S. Furthermore. KO’s profits are also vulnerable to the volatile costs for the raw materials used to make drinks . Though the non-CSD market is growing quickly. due to a dispute over wholesale prices of Coca-Cola products.3 million. The size and variety of KO’s offerings in the CSD category. and the plastic used in bottles. On February 25. Page 20 . Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. slowing consumer spending in Coke's large North American market compounds the challenge of increasing costs and a weak economic environment. In January 2009. exposing it to currency fluctuations. the soft drink market has changed dramatically with consumers buying fewer soft drinks and more non-carbonated beverages. In November 2009. coupled with the unparalleled brand equity of the Coca-Cola trademark. which are particularly adverse with a stronger U. The change is part of a larger strategy to rejuvenate the product's image. KO has also responded to consumers’ changing tastes with new. the company generated revenues of $31 billion with $6. Strong international growth has also more than offset a weak domestic market. GLOBAL MARKET SHARE OF COCA-COLA In 2009.8 billion net income. has allowed KO to maintain its share of this important market. Since spinning of Coca-Cola Enterprises (CCE) 24 years ago. which constitutes 78% of KO’s sales. Under the new deal.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” The word "Classic" was truncated because "New Coke" was no longer in production. Coca-Cola earns approximately 75% of revenue from international sales.such as the corn syrup used as a sweetener. Coca-Cola has remained profitable. The formula remained unchanged. An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD). such as Powerade and Dasani water. Despite these challenges. the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. Costco stopped restocking its shelves with Coke and Diet Coke. the aluminium used in cans. Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE) for $12. eliminating the need to differentiate between the two. non-CSD product launches and acquisitions such as that of Glaceau in 2007. Dollar (USD).
giving the company control over 90% of the total North America volume. which derives approximately 75% of its sales from outside North America. In return. Still.4 billion. the British fruit smoothie maker. In April 2010. Not just the United States but countries from all over the world have felt the impacts of the 2008 Financial Crisis.5% of the Russian juice market. If successful. In June 2010. The deal covers the next 20 years with an option to renew for an additional 20 years. OAO Nidan Juices. However the company was unsuccessful with its purchase of Huiyuan as it broke Page 21 . Last year the company bought an 18% share of the company for more than $45 million. the purchase would add to Coca-Cola's 20. the global economy has fallen into a recession. The Russian juice market is estimated to be $3. Coca-Cola Enterprises will take over Coke's bottling operations in Norway and Sweden.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola Company will take control of the bottler's North America operations. passing Pepsi's 30% market share. Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715 million for the continued right to sell their products following the company's acquisition of Coca-Cola Enterprises (CCE).5% market share. Coca-Cola Company purchased a majority share of Innocent. and recent purchases of additional shares increased Coke's stake to 58%. and estimates of Nidan's purchase price are between $560-$620 million. The company is 75% owned by a private equity firm in London and 25% by its Russian founders and controls 14. becoming a European-focused producer and distributor.2 billion dollars. such as that of Chinese juice maker Huiyuan for $2. the company has positioned itself well in international markets both organically and through acquisitions. This may be a problem for Coke. TRENDS AND FORCES The Global Economic Recession Threatens Overall Demand: In 2008 and 2009. In March 2010. Coca-Cola Company entered into discussions to buy the Russian juice company.
it has recently begun to increase its development of both diet CSD and non-CSD beverages. juices. This is true across most of KO's markets. which do not generally contain any sugar or calories. New Aversion to Soda Threatens Main Business: 74% of the Coca Cola Company's products are classified as carbonated soft drinks. many state public school systems banned the sale of soft drinks on their campuses. Integrated Bottler Strategy Increases Flexibility: After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging beverage maker. opting instead for diet beverages. full calorie drinks produced by KO. making it particularly sensitive to changes in demand for CSD. Within the CSD segment consumers have been moving away from sugared drinks. There has been an increase in the number of regulations regarding CSD in the United States in response to the heightened desire for healthy food consumption. These factors have driven a shift in consumption away from CSD to healthier alternatives. Coke's CEO said that emerging markets are bouncing back quicker than more developed markets. This strategy represents a Page 22 . such as tea. one of the first areas that he targeted for improvement was KO's frayed relations with its extensive network of bottlers. Isdell has continued to increase KO's interest in its bottlers through stake purchases or outright buyouts. On March 5. a predicament for manufactures throughout the beverage industry. In 2006. The Centre for Science and Public Interest proposed that a warning label be placed on all beverages containing more than 13g of sugar per 12-oz serving. 2010. Since consolidating all company-owned bottlers into the Bottling Investments division. This proposal would affect all non-diet. Consumer demand for CSD has been negatively affected by concerns about health and wellness.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” antitrust laws in China. KO is faced with the task of balancing the risk of new innovations with the low growth rates of established brands. and water. Though KO has been somewhat slow to respond to this shift in consumer preferences.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” weakening of the division between KO's production and distribution operations.8 billion gallons. Coca-Cola Enterprises (CCE) now distributes Arizona. In August 2009. an American iced-tea company. down to 8. Dollar Affects International Performance: Another trend affecting Coca-Cola is the relative strength of the U. Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI) for double-digit volume growth in that country.7 billion gallons from 8. In 2008. industry experts don't expect bottled water to bounce back anytime soon. Isdell believes that by combining production and distribution operations the company will have enhanced its ability to quickly respond to changing market conditions. Vultaggio & Sons. In KO's 2007 Q3 Analyst call. The combination of the recession and upper class consumers' increased environmental consciousness has lead many customers to cut back on bottled water in favour of tap water and reusable containers. KO derives about 75% of its operating income from outside Page 23 . Dollar (USD). KO has signed new agreements with many of its bottlers which allow them to distribute drinks produced by other companies. bottled water was the third most popular beverage (behind soda and milk). For example. Isdell sees these agreements as another way of taking advantage of the rapidly growing non-CSD market. Additionally. Follow ing this trend. Dasani bottled water's revenues fell by double digits. Although the company is based in the US. a ready-to-drink tea made by Ferolito. at least one town in Washington state and one in Australia have outlawed the selling of bottled water within their city limits. Bottled Water Falling Out of Favour: In Q3 2009. this decrease is emblematic of the bottled water industry as a whole. but compared to 2007. the Wall Street Journal reported that sales of bottled water had fallen for the first time in five years. Americans consumption declined for the first time.S. Although this is a seemingly small decrease.
and provide a possible incentive for consumers to switch to other companies’ beverages. it also limits larger gains from drastic downswings in the dollar's value. the bottler may be forced to drastically raise prices to compensate. Variations in the prices for these goods can affect the company’s total cost of production as well as its profit margins. Although this hedging insulates from the potential downside of a strengthening dollar. Changes in the production costs of bottlers can also impact KO’s profitability. goods sold in foreign markets are suddenly worth fewer dollars back in the US. S uch a price increase would likely hurt KO. the company is very sensitive to the strength of the dollar. the prices of these commodities rose drastically with general commodities bubble and dramatically pressured margins. They receded in 2008. Commodity Cost Fluctuations Affect Margins: The Coca-Cola Company’s profitability can be affected both directly and indirectly by the costs of various production inputs. and PET resin are three examples of such production goods used by bottlers that could have significant bearing on the Coca-Cola Company’s profit margins. If the raw materials necessary for bottling become more expensive. Aluminium. Thus. CocaCola executives expect currency fluctuations to adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by high single digits. In 2007. KO itself is responsible for purchasing the raw materials used to make its concentrates and syrups.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” United States. KO has broad exposure to foreign currencies and actively hedges a large portion of these to avoid wide swings in earnings from currency fluctuations. given the competitive nature of the non-alcoholic beverage industry. lowering earnings. corn. Because of this. As foreign currencies weaken relative to the dollar. it has a negative effect on KO's earnings. if the dollar strengthens (as it did in the second half of 2008 and 2009). but the possibility of another Page 24 . though in a more indirect way.
Coca-Cola. Pepsi Co.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” significant rise in Commodities represents a constant threat to profits. and Cadbury Schweppes are among the largest competitors in this Page 25 . POTER’S FIVE FORCES RIVALRY AMONG EXISTING FIRMS: The greatest competition that Coca-cola faces is from the rival sellers within the industry.
Bottling plants Page 26 . Diet Coke. and Sprite). However.000 servings of just "Coca-Cola" are sold in the United States alone. and they are all globally established which creates a great amount of competition. PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray.7% due to Pepsi marketing schemes still the higher large gap between the market share can be attributed to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its bottler's and distribution network especially in developed markets. "The Coca-Cola Company" is the largest soft drink company in the world. PepsiCo's U. smaller companies such as Cott Corporation and National Beverage Company make up the remaining market share. According to Beverage Digest's 2008 report on carbonated soft drinks. market share has increased to 30.S. while the Coca-Cola Company's has decreased to 42.000. Fanta.8%. CocaCola has higher sales in the global market than PepsiCo. All five of these companies make a portion of their profits outside of the United States. 2006c). Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of 21%. it had lower sales in 2005 than did PepsiCo (Murray. Aside from these major players. Every year 800.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” industry. Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola. 2006c).
The Coca-Cola Company returned in pursuance of India's Liberalization policy. Pepsi Co Company struck a barter agreement with the government of the Soviet Union. In 1972. Coca-Cola manufactures. In 1988. The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered. Saudi Arabia and Pakistan. PepsiCo bought out its partners and ended the joint venture in 1994. Coca-Cola continues to outsell Pepsi in almost all areas of the world. It supplies concentrates and beverage bases used to make the products and provides management assistance to help it's bottler's ensure the profitable growth of their business. Coca-Cola India's market share was 52. The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Overall. By most accounts. including fountain syrups. In 1993.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” with some exceptions are locally owned and operated by independent business people who are native to the nations in which they are located. Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. in which Pepsi Co was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. However. exceptions include India. In 2005. This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the Page 27 . PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. In Russia. This has put Pepsi at a significant disadvantage compared to US market. distributes and markets non-alcoholic beverage concentrates and syrups.5%.
which was an instant success. Pepsi outperformed Coke during the summer of the Atlanta Olympics. Pepsi launched its most successful long-term strategy of the Cola Wars. Pepsi started hiring more popular spokespersons to promote their products. rivalry in international market is going to be more pronounced. continually innovating with new features each year. as one of the first American products in the Soviet Union. held at Coke's hometown where Coke was the lead sponsor for the Games.S. choosing Pepsi over Coke. Page 28 . the program was expanded to include Mountain Dew into Pepsi's international markets worldwide. supporting Pepsi's positioning as "The Choice of a New Generation. The new competition between rival sellers is to create new varieties of soft drinks. In the late 1990s. Tens of millions consumers participated. Pepsi is however trying to counter this by competing more aggressively in the emerging economies where the dominance of Coke is not as pronounced.R." In 1975. Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other. Pepsi advertisements often focused on celebrities. became a symbol of that relationship and the Soviet policy. such as vanilla and cherry. Get Stuff" and collect Pepsi Points on billions of packages and cups. Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands. with the growth in emerging markets significantly expected to exceed the developed markets. in order to increase sales and getting new customers.S. Pepsi launched Pepsi Stuff. They could redeem the points for free Pepsi lifestyle merchandise. Pepsi Stuff. Consumers were invited to "Drink Pepsi. After researching and testing the program for over two years to ensure that it resonated with consumers. Brand name loyalty is another competitive pressure. The company continued to run the program for many years. Due to its success. Pepsi. The Brand Keys Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” U.
except perhaps in much localized situations that matter little to Coke or Pepsi. then submitting codes online for a certain number of points. Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points". when they both were not able to explain a drop in their June 1992 sales. This makes it very difficult for new. These high capital requirements and market saturation make it extremely difficult for companies to enter the soft drink industry therefore new entrants are not a strong competitive force. This issue was beginning to grab the attention of both Coke and Pepsi in the summer of 1992. and labour. Yet. trucks. such as mp3 downloads. with 'new age' beverages selling to well-informed and health-informed and health-conscious consumers. unknown entrants to start competing against the existing firms. Another barrier to entry is the high fixed costs for warehouses. In addition. According to industry experts. the soft-drink industry is fully saturated and growth is small. However. New entrants cannot compete in price without economies of scale. Both were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops. promoting. Page 29 . some industry observers question whether a new time is coming. Capital requirements for producing. POTENTIAL ENTRANTS: New entrants are not a strong competitive pressure for the soft drink industry.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005 & Coca-Cola retaliated with Coke Rewards. while this view may reflect conventional wisdom. and economies of scale. and establishing a new soft drink traditionally have been viewed as extremely high. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels. Both Coca-Cola and coke previously had a partnership with the iTunes Store. this makes the likelihood of potential entry by new players quite low. with Pepsi Stuff ending its services and Coke Rewards still offering prizes on their website. This cola war has now concluded.
coffee.” Substitute products are those competitors that are not in the soft drink industry. and tea. It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” SUBSTITUTES: Numerous beverages are available as substitutes for soft drinks. juices etc. “Looking ahead. There are progressively more varieties in the water and sports drinks that appeal to different consumer's tastes. Citrus beverages and fruit juices are the more popular substitutes. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. Overall total liquid consumption in the United States in 1991 included CocaCola's 10% share of all liquid consumption. 2005). But as the pop fight has topped out. coffee and tea are competitive substitutes because they provide caffeine. Availability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. Blended coffees are also becoming popular with the increasing number of Starbucks. The consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the caffeine and lose the sugar and carbonation. Barista and CCD stores that offer many different flavours to appeal to all consumer markets. despite solid growth in consumption. but also appear healthier than soft drinks. In addition. the global Page 30 . “For years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi. sports drinks. The growth rate has been recently criticized due to the market saturation of soft drinks. Such substitutes for Coca-Cola products are bottled water. Datamonitor (2005) stated. the industry's giants have begun relying on new product flavours and looking to noncarbonated beverages for growth.
8% and bottled water is 9. changed that by signing legislation to allow soft-drink companies to own bottling companies or territories.” The change attributed to the other growing sectors of the non-alcoholic industry including tea & coffee is 11. Jimmy Carter. Because of this. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines. BARGANING POWER OF BUYERS: Individual consumers are the ultimate buyers of soft drinks. Until 1980.to bottle the companies' products and to whom each company sells its patented syrups or concentrates. Profitability in the soft drink industry will remain rather solid. shortly before he left office. cocacola has diversified from just carbonated drink industry to other substitute and so have other brands like Pepsi. but market saturation has caused analysts to suspect a slight deceleration of growth in the industry (2005). which was viewed as a restraint of free trade.3%. Dr pepper/Snapple. Coke and Pepsi were somewhat restricted in owning bottling facilities. While Coke and Pepsi issue their franchise. these bottlers are in effect the 'conduit' through which these international cola brands get to local consumers Through the early 1980's.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” soft drinks market is expected to slightly decelerate. Coke's domestic bottlers were typically independent family businesses deriving from franchises issued early in the century. reflecting stagnation of market prices. However. plus upholding the territorial integrity of soft-drink franchises. In order for soft drink companies to continue to grow and increase profits they will need to diversify their product offerings. a Coke fan. bottled water. confections. Page 31 . Pepsi had a collection of similar franchises. plus a few large franchisees that owned many locations. and sports drinks industries. especially in the case of Coke. So in order to compete with the substitutes industry. Coke and Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned. soft drink leaders are establishing themselves in alternative markets such as the snack.
Until January 1993.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Also. and vending accounted for approximately 13%. a subsidiary of the Monsanto Company. supermarkets accounted for about 40% of total U. the three most important channels for soft drinks are supermarkets. soft drink industry sales. Coca-Cola beverage. PESTEL ANALYSIS OF COCA. a sweetening agent used in low-calorie soft-drink products. It is a tool that helps the organisations for making strategies and to know the EXTERNAL environment in which the organisation is working and is going to work in the future. In 1987. The principal raw material used by the soft-drink industry outside the United States is sucrose. Social.COLA PESTLE stands for Political. Economic. which is the leading manufacturer and distributor of non-alcoholic drinks also need to undergo this PESTLE analysis to know about the external environment (especially their competitors and the opportunities available) in order to keep pace with the Page 32 .in the United States due to its patent. fountain sales represented about 25%. Coke managers have long held 'power' over sugar suppliers. Technological. and Pepsi distributes its fountain syrup through its bottlers. It likewise is available from numerous sources. fountain sales. Coca-Cola uses its own network of wholesalers for their fountain syrup distribution. aspartame was available from just one source -the NutraSweet Company. BARGANING POWER SUPPLIERS: The principal raw material used by the soft-drink industry in the United States is high fructose corn syrup. and vending. which expired at the end of 1992. which is available from numerous domestic sources. Legal and Environmental.S. Other retailers represent the remaining percentage. Another raw material increasingly used by the soft-drink industry is aspartame. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling companies. They view the recently expired aspartame patents as only enhancing their power relative to suppliers. a form of sugar.
Moreover. The accounting standards used by the company changes from time to time which have a significant role in the reported results. Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and Drug Administration). Political Analysis: Political factors are how far a government intervenes in the operations of the company. Apart from FDA the other political factors includes tax policies and accounting standards. In addition to this. Also the situations like the unsure conditions prevailing in Iraq and escalation of the terrorist activities in these areas could affect the international market of our product. It creates an inability for the company to Page 33 . laws imposed on the recruiting labours. the company is also subjected to import and excise duties for distribution of the products in the countries where it does not have the outsourcing units. amount of permitted goods by the government and the service provided by the government. it is an agency in the United States Department of Health and Human Services. if there is any unrest or changes in the government and any kind of protest by the political activists may decline the demand for the products. environmental policy. The company also is subjected to income tax policies according to the jurisdiction of various countries. Its headquarters is in USA and it has started opening offices in foreign countries as well.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” fast growing economy. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before introducing any ingredients in its products and get prior approval from the FDA. The company also has to take into consideration of the regulation imposed by FDA on plastic bottled products. trade restrictions. The political factors may include tax policy. The job of the FDA is to check and certify whether the ingredients used in the manufacturing of Coca-Cola products in the particular country is meeting to the standards or not. Globally.
inflation rates. This is a threat in the external environment faced by the company. It includes the economic growth of the country. The company first analyzes the economic condition of the country before venturing into that country. interest rates. From the above explanation it is clearly seen that the economic factors involves a major impact in the behaviour of the company during various economic situations. The net operating profits for the company outside US stands at around 72%. exchange rates. the purchasing power among people increases. Along with this the company uses 63 various types of currencies other than US Dollar. when there is an increase in the inflation the employee demand for a higher wage rate to cope up with the cost of living.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” penetrate in the markets of such countries. wage rates and unemployment in the country. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. Hence there is a definite impact in the revenues due to the fluctuating foreign currency exchange rates. A strong and weak currency tends to affect the exporting of the products globally. It gives the company or the marketer a good chance to market the product. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. When there is an economic growth in the country. Coca-Cola. Inflation and wage rate go hand in hand. This comes as additional cost for the company which cannot be reflected in the price of the final product as the competition and risk in this segment is higher. in the past identified this correctly and rightly started its distribution across various countries. it may deter the company in further investment as the cost for borrowing is higher. Page 34 . When there is an increase in the interest rates. Economic Factors: The economic factors analyze the potential areas where the firm can grow and expand.
Population growth rate and the age distribution is another social factor to be considered. population growth with age distribution. Hence coke introduced dietary products for those youngsters who can enjoy coke with zero calories. when entering into a country it does not introduce all the products. is directly related to the customer. This will affect the demand of the company in the existing product and also is an opportunity to venture into new health and energy drinks industry. It is very important to know about the culture before marketing in a particular country. so social changes are the most important factors to consider. It is very important because non-alcoholic markets have most of its share from the children and youngsters. Page 35 . It inspired the company to venture into the areas of Diet coke and zero calorie soft drinks. Each and every country has a unique culture and attitude among the people. they are concerned with the longevity of their lives. emphasis on safety. health consciousness among people. The company adapts various management strategies to adapt to these social trends. The problem of obesity is taken seriously among the youngsters who like to maintain a good physique. Since many are aware. The company cannot change the social factors but the company has to adjust itself to the changing society. Coca-Cola has about 3300+ products in their stable. Coca-Cola which is a B2C company. In one of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly concerned with nutrition”. It introduces minimum number of products according to the culture of the country and the attitude of the people.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Social Factors: Social factors are mainly the culture aspects and attitude. Consumers and government are becoming increasingly aware of the public health consequences. The age distribution of the country becomes important for the success of the product in a country. mainly obesity which is the second social factor in the soft drinks industry. Adults used to celebrate mostly with alcohol.
product safety. Nearly 83% of the worldwide unit case volume is manufactured and distributed by their bottling partners in whom the company does not have controlling power. If the company do not give ample support in pricing. stylish and popular among the youngsters. the laws include competition. Diet Coke etc. antitrust law. it introduced general vending machines all over the world. marketing and advertising then the bottling industry while increase their short term profits. Hence it is necessary for the company to maintain a cordial relation with their bottling partners. introduction of recyclable and non refillable bottles. environment protection. although the creation of a new product with the perfect blend and taste is a science (an art in itself). The company rely on their bottling partners for a significant portion of their business. In the US the products of the company is subjected to various acts like Federal Food. The advancement in technology in the company has led to: Introduction of new ways for the availability of Coca-Cola. Occupation Safety and Health Act. introduction of cans which are trendy. advertising and labelling. labour practices.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Technological Factors: Technology plays a varied role in the soft drinks industry. The technical advancement in the bottling industries include. Technological contributions are most important in packaging. the Federal Trade Commission Act. In products it led to the development of new products like Cherry Coke. Page 36 . employment law and health and safety law. Drug and Cosmetic Act. Legal Factors The legal factors include discrimination law. The manufacturing and distribution of the products is relatively a Low-Tech business. may become detrimental to the company. customer law. container deposits. In Coca-Cola the business is subjected to various laws and regulation in the numerous countries in which they do the business.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” various environment related acts and regulations. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006. which affects the company profitability and also the production and distribution of the products. Coca- Page 37 . the production. packaging and distributing in various countries.1 SWOT ANALYSIS OF COCA-COLA STRENGTHES: WORLD’S LEADING BRAND Coca-Cola has strong brand recognition across the globe. a branding consultancy.000 million in 2006. sale and advertising of all the products are subjected to various laws and regulations. Usage of renewable plastic in the PET bottles is followed by the company strictly. These requirements if become applicable in the future the company must be ready to accept and have necessary changes in hand for the same. recognize. It must adhere to the norms and market the product accordingly.The Business Week-Inter-brand valued Coca-Cola at $67. The company has a leading brand value and a strong brand portfolio. Business-Week and Inter-brand. Various jurisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health consequences. Environment Factors These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. Also the company must follow the environmental issues related to the product manufacturing. Changes in these laws could result in increased costs and capital expenditures. SWOT ANALYSIS OF COCA-COLA Fig 2. distribution.
Coca-cola is one of the best recognized global brands. Consequently. Of the approximately 52 billion beverage servings of all types consumed worldwide every day. The company’s operations are supported by a strong infrastructure across the world. ROBUST REVENUE GROWTH IN 3 SEGMENTS Page 38 . Strong brands allow the company to introduce brand extensions such as Vanilla Coke. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates. The company currently sells its products in more than 200 countries. distributor and marketer of non-alcoholic beverage concentrates and syrups in the world. The company owns four of the top five soft drink brands in the world: Coca-Cola. Sprite and Fanta. Diet Coke. CocaCola owns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world.4 billion. Cherry Coke and Coke with Lemon. Coca-Cola is the largest manufacturer.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12. Coca-Cola owns a large portfolio of product brands. In addition. beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1. Over the years.690 million Furthermore. The company’s large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity. it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. the company has made large investments in brand promotions. The company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones. LARGE SCALE OF OPERATIONS With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coco-Cola is selling trademarked beverage products since the year 1886 in the US.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola’s revenues recorded a double digit growth. These three segments are Latin America. There have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle East and U. In January 2009. the US Food and Drug Administration (FDA) wrote to Mr. and Pacific Rim’ grew by 10.6% while revenues from the bottling investments segment by 19. the US consumer group the Centre for Science in the Public Interest filed a class-action lawsuit against Coca-Cola. WEAKNESS: NEGATIVE PUBLICITY The Coca-Cola Company has been involved in a number of controversies and lawsuits related to its relationship with human rights violations and other perceived unethical practices. Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006. Muhtar Kent. President and Chief Executive Officer. South Asia” and “Pacific Rim” bottling investments. On 10 December 2008. The company received negative publicity in India during September 2006.S.The company was accused by the Centre for Science and Environment (CSE) of selling products containing pesticide residues. to warn him that the FDA had concluded that Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food. revenues from ‘East. Drug. and Cosmetic Act. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue. South Asia. over 2005. accounted for 34. Revenues from Latin America grew by 20. ‘East.8% of total revenues during fiscal 2006. in three operating segments. foreign policy.9%.4% during fiscal 2006. the three segments of “Latin America”. and Pacific Rim’ and Bottling investments. Together. South Asia. along Page 39 . During the same period. “East. The lawsuit was in regards to claims made.
from $6. Sluggish performance in North America could impact the company’s future growth prospects and prevent Coca-Cola from recording a more robust top-line growth. OPPORTUNITIES: Page 40 . a strong performance in North America is important for the company.Decline in cash from operating activities reduces availability of funds for the company’s investing and financing activities. DECLINE IN CASH FROM OPERATING ACTIVITIES The company’s cash flow from operating activities declined during fiscal 2006. in turn. which. the company also expects performance in North America to be weak during 2007. SLUGGISH PERFORMANCE IN NORTH AMERICA Coca-Cola’s performance in North America was far from robust.423 million in 2005. Therefore. The decrease was also the result of certain marketing accruals recorded in 2005. I n North America the sale of unit cases did not record any growth. Cash flows from operating activities decreased 7% in 2006 compared to 2005. increases the company’s exposure to debt markets and fluctuating interest rates. Unit case retail volume in North America decreased 1% primarily due to weak sparkling beverage trends in the second half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover.957 million in 2006.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” with the company's flavours. of Vitamin Water. CocaCola’s cash flows from operating activities in 2006 also decreased compared with 2005 as a result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree medical benefits. Net cash provided by operating activities reached $5. Claims say that the 33 grams of sugar are more harmful than the vitamins and other additives are helpful. North America is CocaCola’s core market generating about 30% of total revenues during fiscal 2006.
In the bottled water market. a bottling company in South Africa. its bottling joint venture with the Kerry Group. the bottled water market is forecast to reach $19. Market consumption volumes were estimated to be 30 billion litres in 2006. the revenue of flavoured water (water-based. Coca-Cola has also acquired a 100% interest in TJC Holdings. in Hong Kong.9% during 2005-2010. The market for bottled water in the US generated revenues of about $15. its acquisitions included Kerry Beverages. through new product launch or greater penetration of existing markets. which was subsequently. (KBL). The acquisition extended Coca-Cola’s control over manufacturing and distribution joint ventures in nine Chinese provinces. On 25 February 2010. These also give Coca. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. The market's consumption volume is expected to rise to 38. reappointed Coca-Cola China Industries (CCCIL). This strategy of coca cola strengthens its operations internationally. slightly sweetened refreshment drink) segment is growing by about $10 billion annually. The Page 41 .6 billion units by the end of 2010. In terms of value. This represents a CAGR of 6.Cola an opportunity for growth. Coca-Cola acquired a controlling shareholding in KBL.3 billion by the end of 2010. These acquisitions strengthened Coca-Cola’s international operations. Coco cola confirms to acquire the Coca cola enterprises (CCE) one the biggest bottler in North America. In Germany the company acquired Apollinaris which sells sparkling and still mineral water.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” ACQUISITIONS During 2006.6 billion in 2006. Stronger international operations increase the company’s capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. GROWING BOTTLED WATER MARKET Bottled water is one of the fastest-growing segments in the world’s food and beverage market owing to increasing health concerns.
Groupe DANONE and Kraft Foods. about 11. The company faces intense competition in various markets from regional as well as global players. they have become more important to marketers than ever before. Competitive factors impacting the company’s business include pricing.6 million US households were estimated to be Hispanic. advertising. The US Census estimates that by 2020.a 55% increase over 2003 levels. the Hispanic population will reach 60 million or almost 18% of the total US population.S Hispanics are growing rapidly both in number and economic power. In 2006. Coca-Cola has extensive operations and an extensive product portfolio in the US. THREATS: INTENSE COMPETITION Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” company’s Dasani brand water is the third best-selling bottled water in the US. which would translate into higher consumption of Coca-Cola products and higher revenues for the company. Cadbury Schweppes. the company faces competition from various non-alcoholic sparkling beverages including juices and nectars and fruit drinks. Also. PepsiCo is one of the company’s primary competitors. Other significant competitors include Nestle. This translates into a Hispanic population of about 42 million. GROWING HISPANIC POPULATION IN U. The economic influence of Hispanics is growing even faster than their population. As a result. including the US. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavoured water. In many of the countries in which Coca-Cola operates. sales Page 42 . The company can benefit from an expanding Hispanic population in the US.
in the long run. some of whom are publicly traded companies. this representing a compound annual growth rate (CAGR) of only 0. The performance of the Page 43 . In 2006. then the partners may take actions that. loss of one or more of its major customers by any one of its major bottling partners could indirectly affect Coca-Cola’s business results. while maximizing their own short-term profits. product innovation. many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. its bottling partners. As independent companies. In addition. Such actions could. Such dependence on third parties is a weak link in Coca-Cola’s operations and increases the company’s business risks. have an adverse effect on Coca-Cola’s profitability. approximately 83% of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. In addition.2% for the five-year period spanning 2001-2005. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US.9 billion in 2005. and brand and trademark development and protection.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” promotion programs. make their own business decisions that may not always be in line with the company’s interests. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners. may be detrimental to Coca-Cola. SLIGGISH GROWTH OF CARBONATED BEVERAGES US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. DEPENDENCE ON BOTTLING PARTNERS Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom it doesn’t have any ownership interest or in which it has no controlling ownership interest. The US carbonated soft drinks market generated total revenues of $63. Intense competition could impact Coca-Cola’s market share and revenue growth rates. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola.
with an anticipated compound annual rate of change (CAGR) of -0.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” market is forecast to decelerate. Coca-Cola already expects its performance in the region to be sluggish during 2007.3% for the five-year period 2005-2010 expected to drive the market to a value of $62. Moreover. Coca-Cola’s revenues could be adversely affected by a slowdown in the US carbonated beverage market. the US is the company’s core market. Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to Page 44 . Moreover in the recent years. beverage companies such as Coca-Cola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content.9 billion by the end of 2010. and have been implicated for facilitating poor diet and increasing childhood obesity.
in a hope to beat the main competitor (Pepsi). their strategy was to make Bollywood or Tamil stars to endorse their products. they had to re-think their market strategies.5. MAAZA. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’. After 16 years of absence.e. Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”. They launched an extensive market research in India. and mango flavoured. Pepsi put more focus on the youth of the country in their advertisements but coca cola tried influencing Indians with the ‘American’ way of life. they also formulated a lemon flavoured drink. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover. Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i. In various regions they tried portraying coca cola products with different regional food products. coca cola bought the whole Parle Brother operation. which turned out to be a mistake. their sales figures were not so impressive. however. Affordability. During their absence. Along with. Parle brothers introduced a new type of cola called THUMS UP. They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. and reached to a conclusion that competitive pricing was unavoidable. they had different advertising campaigns for different regions of the country. In 1993. Availability and Acceptability. In the southern part. Hence. “Lassi” etc. Coca-Cola invested heavily in India for the first five years. Presently. which got them credit of being one of the biggest investor in the country. Further. hence leading to profit. they featured the same quote with different regional entities. Pepsi having a 6 year head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India. Page 45 . LIMCA. coca cola returned to India and witnessed a different culture and economic platform. They ascertained that in India 3 As must be applied. Since then they introduced a 200 ml glass bottle for Rs. “Narial Pani”.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” close down its operation by a socialist government in the drive for self sufficiency.
movies. even in remote and inaccessible parts of the nation. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket. with another 25 being owned by franchisees. supply. music & food.000 people in related industries through its vast procurement. they have regained their throne. compared to its arch rival. 10-tonne trucks – open bay three-wheelers that can navigate the narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the Country’s remotest areas.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 60% in Carbonated Soft drinks Segment. The Indian operations comprises of 50 bottling operations. and distribution System. 33% in Packaged water Segment. 36% in Fruit drinks Segment. a network of 21 contract packers manufactures a range of products for the Company. That apart. 25 owned by the Company. In 2002. and indirectly creates employment for more than 125.000 people.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s favourite soft drink brand. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people. With virtually all the goods and services required to produce and market Coca-Cola being made in India. On the distribution front. Pepsi. Page 46 . PRODUCTS OF COCA-COLA INDIA COCA-COLA:In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. the business system of the Company directly employs approximately 6. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. Diversifying their product range and having a competitive pricing policy.
1. 2L. GLASS 200ml. anywhere. 300ml.1 sparkling drink in the cloudy lemon segment. Derived from “Nimbu” + “Jaise” hence Lime Sa. Originally introduced in 1977. 2. 300ml. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of “Freshness”. Thums up was acquires by The Coca-Cola Company in 1993.1 CAN 330 ml FOUNTAIN VARIOUS SIZES THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. 500ml. 100ml Table . 1. 2.25L. 500ml. 500ml.5L. Limca can cast a tangy refreshing spell on anyone. Limca has remained unchallenged as the No. 500ml.25L.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” GLASS 200ml.1. Thums up Page 47 . Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. 100ml Table . 1000ml PET 500ml.5L.0 CAN 330 ml FOUNTAIN VARIOUS SIZES LIMCA:Limca was introduced in 1971 in India. 2L. 1000ml PET 500ml.1.
3 FANTA:Fanta entered the Indian market in the year 1993. 600ml. 500ml. This brand clearly seeks to separate the men from the boys. 1000ml PET 500ml. mature and uniquely masculine attitude. 2000ml.1.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” is known for its strong. 300ml PET 500ml. 2. fizzy taste and it confident. Sprite with its cut-thru perspective has managed to be a true teen icon. RGB 200ml.2 CAN 330 ml FOUNTAIN VARIOUS SIZES SPRITE:Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. 300ml. GLASS 200ml. 1. 2L. 1500ml. Launched in 1999. Over the years Fanta has occupied a strong Page 48 . 1250ml. 500ml.25L. 2250ml CAN 330 ml FOUNTAIN VARIOUS SIZES Table – 1. 100ml Table .5L.
Perceived as a fun youth brand. tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. 1 litre. This positive imagery is associated with happy. forming a frozen concentrate that when reconstitute created orange juice. GLASS 200ml.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” market place and is identifies as “The Fun Catalyst”. 2L. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. They branded it Minute Maid a name connoting the convenience and the ease of preparation. Maaza has today come to symbolise the very spirit of Page 49 .25 litres. 1. 300ml PET 500ml. 500ml. 2. Fanta stands for its vibrant colour. 1. cheerful and special times with friends. The company developed a process that eliminated 80% of the water in the orange juice. Available in 3 PET pack sizes i. MAAZA:Maaza was introduced in late 1970’s.4 CAN 330 ml FOUNTAIN VARIOUS SIZES MINUTE MAID PULPY ORANGE:The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation developed orange juice powder. 100ml Table – 1.e.25L. The launch of Minute Maid in India (started with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category. 400ml.5L.
5 POCKET MAAZA 200ml KINLEY:The importance of water can never be understated. The Georgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. Universally loved for its taste. colour. Cinemas and in Corporates across all major metros in India. Cardamon Tea. Caffe Latte. be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company. Cappuccino. Table – 1. Americano. 600ml.2L Table – 1. Hot Chocolate. HOT BEVERAGES Espresso. Mochaccino. 250ml PET 250ml. COLD BEVERAGES Ice Teas. GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” mangoes. Available in PET 500ml and 1000ml. thickness and wholesome properties.6 MARKETING MIX OF COCA-COLA INDIA Page 50 . RGB 200ml. 1. Maaza is the mango lover’s first choice. Cold Coffee. Airports. Particularly in a nation such as India where water governs the lives of the millions. Today Georgia coffee is available at Quick-Service Restaurants.
In 2002 Kinley with 35% market share had become the leader in the retail PDW segment and was contributing 20% of CCI’s revenues. In early 1999. The product not only faced intense competition but also was difficult to differentiate. Thums Up. In 2000. Sprite. As a result 12 more bottlers were brought into CCI’s fold. To make it affordable. PDW was a low margin – high volume business. priced at Rs 3 per cup in testing marketing exercise conducted in mid – 2002. clear lime and cola drinks each in its portfolio.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” PRODUCT:Coca-Cola India has a wide range of products in its product line i. the parent company acquired Cadbury Schweppes. In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s Aquafina. PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like India. but it was an attractive proposition for bottlers as it increased plant utilization rates. Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water). So the 200ml pack priced at Rs 5 was rolled out countrywide in January 2003. Packaged drinking water in India was a Rs 1. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers.000 cr industry and growing by 40% every year. CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. Coke introduced Kinley in 200ml pouches for Re. Coca-Cola. Minute Maid and Georgia Gold. Page 51 . The volumes went up by 30% demonstrating the importance of consumer affordability. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra. The advertising Campaign highlighted the affordability and Indian image.e. Canada Dry and Sport Cola to CCI’s product line. Fanta. Maaza. Bottled water was another area where Coca-Cola identified major opportunities. This meant CCI had three orange. In 2002. This acquisition added Crush.
The heads of the divisions reported to the CEO. Under the new plan. CCI shifted to a six region profit center set up where product customization and packaging. decided not to spend heavily on promoting Thums Up. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. as a deliberate strategy. He reported to the RGM as well as the head of bottling at the head quarters. Coke. Thumps Up remained neglected. CCI's operations had been divided into North. Each of the six regions had on an average six bottling plants. with 37 bottling plants. Inadequate marketing support for other Parle brands also led to their declining market shares. The four bottling operations. They argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and Page 52 . support systems and culture to leverage the local capabilities. Each region had a president at the top. CCI focused on establishing the Coca-Cola brand quickly. Bottling operations were divided into four companies directed by the bottling head from headquarters. Each plant was headed by an Area General Manager (AGM) and held profit center responsibility for a business territory. marketing and brand building were taken up locally. who in turn reported to CEO. All the RGMs reported to VP (Operations. finance. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. PROMOTION:In the initial years. The aim was to effectively align CCI's corporate resources. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. were merged into Hindustan Coca-Cola Beverages (HCCB). human resources and bottling operations. The bottlers taken over by Coke also had problems adjusting to a new work culture.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” PLACE:Coke pushed down responsibilities from corporate headquarters to the local business units. Central and Southern regions. with divisions comprising marketing.
it had become India's No. CCI signed up celebrities like Aamir Khan. was repositioned as a juice brand and saw a growth of almost 30% in 2001. CCI spent $3. Coke wrote off investments in India. the mango drink. This can be seen by Coca-Colas advertising campaigns.2 cola drink after Pepsi. They were focused on mega events like the 1996 Cricket World Cup held in India. During 90'ies Coke's promotion efforts did not seem to be effective. which are aimed towards the young. In 1998 localization of marketing efforts. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. Thumps Up in Mumbai and Andhra Pradesh. It promoted the Coke brand in Delhi. In 1998. dealers had been pampered by offering expensive overseas trips. India was declared the fastest growing market within the Coca-Cola system. Aishwarya Rai.5 mn to beef up advertising and distribution for Thumps Up. Maaza. and Sunil Gavaskar to promote Coke. The revised value of CCI's assets after the charge was $300 mn. By 2002. amounting to $400 Mn. Since India was a large country of different tastes and cultures. Coke is primarily targeted at young individuals over the age of twenty-five. a spicy soda drink in North Maharashtra. Coke also began efforts to rejuvenate the Parle brands.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” asked CCI to take corrective action. Limca and Thumps Up. Coke had plans to launch Rimzim. by featuring well known personalities popular to this age group. To maintain good relationships with bottlers and avoid defections to the other camp. But things were far from normal. Attempts at building growth through discounts and PET take home segment were not very successful because of lack of coordination between the launches and marketing back-up. PESTEL ANALYSIS OF COCA-COLA INDIA Page 53 . and Fanta in Tamil Nadu. In 2000. CCI customized its marketing strategy for different regions.
Economic. Political Factors: Historical Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than revealing its formula to the government. Legal and Environmental. the most damaging was when Coca-Cola was forced to sign an agreement to sell 49% of its equity in order to buy out Indian bottlers. However. more importance was being given to lobbying the politicians. This and some of the policies imposed on foreign enterprises proved as a hindrance to the growth of the company in the country. foreign businesses were not allowed to market their products under the same name if selling within the Indian market. India’s past promotion of “Indigenous availability” or “Swadeshi movement” depicted its affinity for local products. It is a tool that helps the organisations for making strategies and to know the EXTERNAL environment in which the organisation is working and is going to work in the future. the primary barrier for Coca-Cola’s entry into the Indian market was its political environment. the policies were neither clear nor unchanging. To make things worse. However. Recent Scenario During recent times. Due to India’s suspicion of foreign business entering Indian markets. the most controversial. Thus. Despite the liberalization of the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers such as bureaucracy and regulation. there was still a lot of protectionism. They re-entered the country in 1993. For example. Due to the lack of consistency in the legal aspects. Social. On August 5 th Page 54 . and by far. Technological. Coca Cola India has faced its fair share of problems. Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to Lehar Pepsi).“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” PESTLE stands for Political. Coca Cola received alien status its re-entry.
with a 22 percent increase in its unit case volume last quarter. Due to this. This threatened the newly achieved leadership attained over Pepsi due to a successful marketing campaign. in Plachimada. The Centre for Science and Environment (CSE). there are certain positives as well. Many leading clubs.6% of growth in the last quarter of 200910 as compared to 5. near Varanasi. It showed 8. Kerala. retailers. the local Panchayat decided not to renew the license issued to Coca Cola to “protect public interest". According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August. However. There was widespread discontent around many of their plants. It has emerged as an attractive economy to invest in as many opportunities has been recognized. This had an adverse impact on the sales of Coca Cola. the communities in and around the Coca Cola plant blamed the factory for their water problems. three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times. and college campuses across the country had stopped selling Coca-Cola. But this was not the end of Coca Cola’s troubles.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2003. Economic Analysis: The Indian economy sustained the global economic slowdown in the previous year and has shown a tremendous economic growth. an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues". Economic growth Page 55 . with a drop of almost 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory.8% same time in the previous year. For example. restaurants. The company has also been accused of illegally occupying a portion of the village property resources in Mehdiganj.
Their expenditure has been rising. Coca cola India returned to the country in 1993. as they have been rising due to inflation. Coca cola registered 22% growth in their unit case volume in the second quarter (April-June). just behind China. with more costs in salaries. Inflationary effects Inflation is one of the main problems that Indian economy has been facing for a year now. Coca cola India’s growth is in contrast to its overall performance. distribution channels and other operating costs. With economic growth many opportunities have been seen. Exchange rate Page 56 . especially oil. Coca cola India has also been affected by the same. The inflation rate for the year 2009 was recorded to be 11. It is the 16th consecutive quarter of such growth out of which 13 are double digit. it has been forced to think about their input costs. despite few problems in the start they have emerged as the king of soft drink industry in India. As prices have gone up in India for various products. the beverage king reported a growth of just 5% (worldwide) in the same quarter.49%. they have not revised their product prices. Analysts have said that India will be the third biggest economy of the world in the coming year behind China and USA. Beverage industry being price competitive market. which have attracted many foreign investor to the company. The strong economic growth of India has resulted in coca cola to invest heavily in sales and distributive channels. Nimbu Fresh and an energy drink ‘Burn’. Rising prices in the food and other products doesn’t only effect the consumers it also has an adverse effect on a company. there has been uncertainty in decision making of almost every company.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” India is ranked second in economic growth. It has introduced two new products.
things were brought under control when Thums Up was bought over by Coca Cola. These products had been around for centuries.Cola returned to India in 1993 after a 16 year hiatus. The soft drink industry today is growing steadily due to the booming economy. Coca-Cola had earlier focussed more on the American way of life in their advertising campaigns. in the present scenario rates have reached a stable level and exports are on an increasing trend. It has also generated employment for almost 1. Social Analysis: Coca.000 people in related industry through its procurement. Therefore. Coca Cola today. Exchange rate determines at what price will the company export its products and import whatever is required by it. and were also cheaper alternatives to CocaCola. which the Indian consumers could not identify with. Initially. Lassi etc. introduction of newer products which appealed to the Indian tastes. more investment in market research and focussing on the target group of 18-24 year olds. and more attention was paid by the company on their marketing mix. With the lowering of their prices by almost 15-20%. the rate of rupee to USD touched 44. strengthened Page 57 . Also. they were able to increase their market share and build brand loyalty. it struggled to find acceptance as there were already other brands such as Parle’s Thums Up which existed in the market. has made significant investments to build its business in India. on an average it has been around 47.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” The exchange rate of rupee to US Dollar has been stable but in the previous months the rate has had a tumultuous period. amidst competition from Leher Pepsi which had the advantage of entering the country 7 years earlier. supply and distribution cycles.25. However. so the exports earned less and the imports cost more. coca cola India had to bear some low profitable times. The previous year. they did not focus on competition from other alternatives such as lemonade. However.
The major focus would be on non carbonated drinks and flavours. The rural market had also been identified by Coca-Cola India as an attractive target. by tying up with many NGOs such as BAIF (or Bharatiya Agro Industries Foundation). SOS Children’s Villages and Save the Children. with the view of localizing its product portfolio. They support many community based rainwater harvesting projects and help Page 58 . energy drinks. It has also taken initiatives to promote education in rural areas. Environmental Analysis: Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed in the footsteps. and is exploring options to enter new categories in India such as juices in localised flavours. Case in point is the recent 2009 Sprite campaign. These initiatives are being taken by the company to further expand their product portfolio.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” middle class and low per capita consumption. With the increase in health consciousness among the urban consumers. Technological Analysis: Coca-Cola has started operations of its R&D facility in India. with almost 70% of the country’s population. Coca-Cola has increased ad spend on the internet. one of them being ‘water conservation’. which was first launched on the internet. sports drinks and flavoured water. the company has introduced newer products such as Diet Coke. With the increasing importance of 360 degree media tools and overall ad spend on social media sets likely to grow by almost 44%. The company’s R&D team has already rolled out drinks such as Maaza aam panna and also a Maaza mango milk drink. This is also responsible for the company shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled water. is an initiative that prioritizes many social and environmental issues. The company has recorded significant growth in recent years Coca Cola India has also taken many initiatives as a responsible corporate citizen. which contain lesser calories than ordinary Coca Cola. Coca Cola India’s Corporate Social Responsibility (CSR).
Bisleri had 59 times and Aquaplus had 109 times. They seek to provide leadership in three different areas. Energy efficiency 3. Coca Cola India had to face its share of controversies. Ban on purchasing CFC emitting refrigerating equipment 5. Eliminating or minimizing solid waste.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” lending conservation education. On 4th February. Ground water and environment survey before selecting the site 4. 2003. Page 59 . In the experiment. Compliance with all regulatory environmental requirements 7. Coca Cola’s Kinley has 15 times more pesticide residual levels than the stipulated norms. Environmental impact assessment before commencing project 3. Waste water treatment facilities 6. Energy conservation programs By following these guidelines Coca-Cola India has helped the environment with consistent profits and success. released a report based on experiment done by Pollution Monitoring Laboratory. these are as follows: 1. Thoug h being an environmental friendly company. Water efficiency and water quality 2. they tested 17 packaged drinking water brands and found that. Environmental due diligence before acquiring land 2. The company has made sure that the following ideas are considered during their operations: 1. Centre of Science and Environment in India.
001 part per million. However. Further.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA Legal Analysis: Page 60 . which stated that pesticides should not be present in any food item but did not have law against pesticides being present in soft drinks.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” The main law governing the food safety is the 1954 Prevention of food alteration act. the health ministry of India admitted that ‘there were lapses in PFA regarding carbonated drinks’. Fig 2. the Food Processing Order 1955 stated that the main ingredient used in soft drinks must be ‘potable water’ but the Bureau of Indian Standards had no prescribed standards for pesticides in water. But later it was found that BIS had stated that pesticides should not be present or it should not exceed 0.
consumer is the king. a business should plan out everything. India has strict laws against employing child labour. Employment Laws Ministry of Labour makes the laws for proper employment in the country. discrimination laws etc. Being a male dominated society. these are to meet the norms and laws set by the labour ministry. the ministry has made sure that female employees are treated with respect and given equal importance at the work place. batch no. Every field of work has got its own wage. Their main job is to see that the consumer benefits are being met or not. and employees. When producing their beverages. strategies so as to satisfy their consumers. employment laws. manufacturing date. Complaining and getting the verdict the court has made very fast and efficient as government of India has installed new consumers courts. Health and safety laws As coca cola produces a product that is consumed by the consumer as a food item.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” As the Indian consumer is getting more educated. not meeting the stated standards a consumer can complain against the manufacturer. expiry date. regional or any racists’ basis. antitrust law. there are laws that the company must abide by when producing it. there were not so many laws protecting the benefits to the consumer but now every business has to go by the law and fix their operations. In the past. Ministry of Food Processing Page 61 . coca cola India cannot discriminate on social. if a product is defective. If it is found that the company has been violating the law. They have stipulated norms on employing people from the country and getting expatriates in the company as well. Coca Cola India has to make sure that they have written price. Consumer Laws In the present scenario. nutritional facts are written on the packed product. Keeping in mind the consumer laws. When employing anyone. the government is also paying special attention to consumer laws. it has to face strict action and fines.
From now on.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Industries makes and oversees the laws and norms for the food processing industries. 1955 relating to food. The Vegetable Oil Products (Control) Order. The Edible Oils Packaging (Regulation) Order. competition issues and any dispute between two different business entities. CLG competition and anti trust practices are as follows: • Representing clients before the MRTP Commission in ‘monopolistic and restrictive trade practices’ and ‘unfair trade practices’ matters. Anti-trust law The Competition Commission of India was made under the Indian Competition Act 2002. De oiled Meal. • Legal Advice and sophisticated insight into the international best practices on Page 62 . 1954. The Solvent Extracted Oil. The Indian Parliament has recently passed the Food Safety and Standards Act. 2006 that overrides all other food related laws. 1998. Anything that coca cola makes. 1967. It will specifically repeal eight laws: • • • • • • • • The Prevention of Food Adulteration Act. The export or the import of the products by the company has to meet the quality standards stipulated by the law. This committee looks after all the issues regarding unethical means of doing business. have to make accordingly to the laws. 1955. 1947. Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. the act establishes a regulatory body. volume and ingredients of the product. The Milk and Milk Products Order. Essential Commodities Act. 1973. 1992. They have to check the weight. The Meat Food Products Order. The Fruit Products Order. the Food Safety and Standards Authority of India. and Edible Flour (Control) Order.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” competition law.3 SWOT ANALYSIS OF COCA-COLA INDIA STRENGTHES: DISTRIBUTION NETWORK The Company has a strong and reliable distribution network. mergers. on Competition Law and related legal issues. distributors. Any other business trying to copy the brand of coca cola will face the strict action against itself. pricing and marketing. joint operation and research. These laws help every business to compete in a fair environment. • Consultancy services on specific issues . Strategic policing on anti-competition market practices and trends. rejoinders. Policy due diligence for mergers. Drafting claims. • • • • • Competition Audit and Due Diligence for developing appropriate guidelines for employees. All these laws help Coca Cola India to maintain its own brand and values. joint buying. joint ventures with appropriate antitrust safeguard measures and policy. ‘promotional materials’. counter-claims. amalgamation. The network is formed on the Page 63 . Legal Due Diligence on anti-competition. agents. representations etc. unfair and restrictive market practices. licensing. SWOT ANALYSIS OF COCA-COLA INDIA Fig 2. the CCI makes sure that either of them does not indulge in unfair means to make profits and hurt each other’s business. As it is known that the coca cola and Pepsi are the fiercest rivals in the beverage industry. ‘dominant-firm’ status etc. acquisitions.supply and distribution. franchisees etc. replies. acquisitions.
700. Performance. from 10 tonne to open bay three wheelers that can navigate the narrow alleyways of Indian cities – constantly keep Coca-Cola brands available in every nook and corner of the Country’s remotest areas. Thums up. It has a distribution network consisting of a number of efficient salesmen. The multimedia campaign “Little Drops of Joy " is aimed at raising the corporate brand image of the company which took a heavy beating with a number of controversies it faced in different domains. STRONG BRAND IMAGE Coke has its history of about more than a century and this prolonged sustenance has definitely added to the brand image in the minds of the consumers and to its wallet. The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. Portfolio.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” basis of the time of consumption and the amount of sale yielded by a particular customer in one transaction. Page 64 . Strong brand names like Coca-Cola. Partners. The products produced and marketed by Coca-Cola India have a strong brand image. The distribution fleet includes different modes of distribution. Fanta. Coca Cola India for the first time has come out with corporate campaign in India targeting its stakeholders. Limca and Maaza add up to the brand name of Coca-Cola Company as a whole.000 retail outlets and 8000 distributors. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy. Planet. The company has identified the 5 pillars as • • • • • People.
Coca-Cola India claims a 58 per cent share of the soft drinks market. Page 65 . excise duty reduction and creating marketing companies. SMALL SCALE SECTOR RESERVATIONS The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’. the Company finds it very difficult to invest in technological advancements and achieve economies of scale. a non. WEAKNESSES: HEALTH CARE ISSUES In India. there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003. said aerated waters produced by soft drinks manufacturers in India. DDT.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” LOW COST OF OPERATIONS In light of the company’s Affordability Strategy.governmental organization in New Delhi. contained toxins including lindane. Coca-Cola went about bringing a cost-focus culture in the company. OPPORTUNITIES: LARGE DOMESTIC MARKETS The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. This included procurement Efficiencies – through focus on key input materials. trade discipline and control and proactive tax management through tax incentives. including multinational giants PepsiCo and Coca-Cola. the Centre for Science and Environment (CSE). malathion and chlorpyrifos . These measures have reduced the costs of operations and increased profit margins.pesticides that can contribute to cancer and a breakdown of the immune system.
as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3. People understand trade to a large extent and the demand for foreign goods has increased over the years. Coca-Cola amounts for 74% of the beverage market. Other products account for 16 per cent market share.500 new villages. Coca-Cola Company can take advantage of such a situation and enhance their sales. people now have the power of buying goods of their choice without having to worry much about the flow of their income.000 new outlets in the first two months of this year. The company appointed 50. like Maaza etc and export them to foreign nations. THREATS: IMPORTS As India is developing at a fast pace. the per capita income has increased over the years and a majority of the people are educated. HIGHER INCOME AMONG PEOPLE Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times. EXPORT POTENTIAL The Company can come up with new products which are not manufactured abroad. In Bangalore. the export levels have gone high.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” this includes a 42 per cent share of the cola market. Page 66 . It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market. chiefly led by Limca.
Renewing or updating a license every now and then is difficult. seasonal consumption linked to harvests and festivals and special occasions. All these problems might lead to a slowdown in the demand for the company’s products. the production capacity is mentioned on the license and every time the production capacity needs to be increased. Therefore. power problems. acute dependence on the vagaries of the monsoon.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” If consumers shift onto imported beverages rather than have beverages manufactured within the country. the license poses a problem. When a license is issued. this can limit the growth of the Company and pose problems. large number of daily wage earners. it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. Page 67 . and inaccessibility to conventional advertising media. SLOWDOWN IN RURAL DEMAND The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income. TAX & REGULATORY SECTOR The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. poor roads.
RESEARCH METHODOLOGY Page 68 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 4.
Another objective of the study was to perform Competitive analysis between Coca- Cola and its competitors. To understand the reasons behind the purchase of Coca-Cola products.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” OBJECTIVES OF THE STUDY The main objective of the project is to analyze and study in efficient way the current position of Coca. The study was aimed to perform Market Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola. SCOPE OF THE STUDY:Page 69 .Cola Company. To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally. This would help us identify areas of potential growth.
1. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. Descriptive Research:The objective of descriptive research is to describe things. 2. Page 70 . Descriptive Research.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” This study basically tries to discover the current position of Coca-cola in the market. Exploratory Research:The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypothesis. It is primarily directed to the general public but was done only in New Delhi. Casual Research. Noida and Greater Noida RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the needed information. It is overall operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedure. 3. There are three types of objectives in a marketing research project:• • • Exploratory Research. Casual Research:The objective of casual research is to test hypothesis about casual and effect relationships. such as the market potential for a product or the demographics and attitudes of consumers who buy the product.
SECONDARY DATA:It is defined as the data collected earlier for a purpose other than one currently being pursued. PRIMARY DATA:- Page 71 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Based on the above definitions it can be established that this study is a Descriptive Research as the attitudes of the customers who buy the products have been stated. Marketing reports of the company. As a researcher I have scanned lot of sources to get an access to secondary data which have formed a reference base to compare the research findings. Secondary data in this study has provided an insight and forms an outline for the core objectives established. SOURCES OF DATA The data has been collected from both primary as well as secondary sources. Internet. Text books. Magazines. The various sources of secondary data used for this study are: News papers. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study. The methods that have been used to collect the primary data are: Questionnaire. SAMPLING DESIGN An integral component of a research design is the sampling plan. Pie-charts. RESEARCH MEASURING TOOLS & TECHNIQUES The primary tool for the data collection used in this study is the respondent’s response to the questionnaire given to them. Personal interview. Especially it addresses three questions: Whom to survey (sample Unit). how many to survey (Sample Size) and how to select them (sampling Procedure). The various research measuring tools used are: Questionnaire. Personal Interview. Column charts. Making the census study of the entire universe will be Page 72 . Bar-charts. Tables. Percentages.
Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Properly done.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” impossible on the account of limitations of time and money. Hence sampling becomes inevitable. A sample is only his portion of population. Through questionnaire – 150 respondents. sampling produces representative data of the entire population. ii.7 150 27 177 Number FIELD WORK:The study was conducted in New Delhi. SAMPLING TOOL:Questionnaire was used as a main tool for the collection of data. mainly because it gives the chance for timely feedback from respondents. Questions were read out to the respondents and the answers were noted. SAMPLE SIZE:i. The questionnaires were given to the respondents to fill in order to get their feedback. Noida and Greater Noida. Page 73 . Sampling Tools Questionnaire Personal Interview Respondents Customers Customers Total Table – 1. Through personal interview – 27 respondents. Respondents seeking any clarification can easily be sorted out through tool.
The project duration is limited to 4 weeks so it limits the area of study. The study was confined to New Delhi. But there are certain factors which affects this study they are as follow: Since the sampling procedure was judgmental. Noida and Greater Noida due to which the result cannot be applied universally.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” LIMITATIONS OF THE STUDY:The main purpose of this study is get idea about the preference of the customers towards various Coca-Cola products. Economic and market conditions are very unpredictable (Present and future). the sample selected may not be true representative of the population. Page 74 .
DATA ANALYSIS Page 75 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 5.
6 Fig 2.4 Fig 2.6.4. we come to know that the gender ratio of the total respondents is almost 2:1 (male: female). This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. Page 76 . we interpret that about 48% of the total respondents consume soft drinks rarely or once a week. About 35% respondents consume soft drinks twice or thrice a week and only 18% consumes soft drinks every day. About 6% belong to age group below 20 and 3% belong to age group of 30-40.5.7 SOFT DRINK CONSUMPTION & EXPENDITURE: From Fig 2.Form Fig 2. Fig 2. we can comprehend that 90% of total respondents belong to the age group of 20-30.5 AGE GROUP & GENDER: From Fig 2.
Fig 2. which is very low as compared to the global scenario. About 23% purchase for the purpose of parties. Although some of the advertising campaigns target special occasion or festivals.19% prefer to purchase from Supermarkets and Vendor machines. we interpret that about 81% of the respondents spend only Rs. Restaurants and Multiplexes. From Fig 2. we have ascertained that preferred portal for purchase of Coca-Cola products is the retail shops i.9 it is concluded that 59% respondents purchase Coca-Cola without any specific reason. we can find retail shops in every corner. Page 77 .9 REASON FOR CONSUMPTION: From this graph. This is probably because not all communities in India have supermarkets and other purchasing channels present nearby. 23% prefer to purchase from Pubs. This creates a potential growth market for Coca-Cola India.7. we infer that there is no specific occasion why people purchase Coca-Cola products. 15% purchase while watching movies in the cinemas and only about 4% purchase during festivals and for picnic purposes.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” From Fig 2. whereas.e. About 12% spends from 100-150 a week & 7% spend above 150. 50-100 a week on Coca-Cola products.8 PURCHASING PORTAL PREFERENCE: From the above data. Fig 2. 58%.
12.11. prefer consuming Coca-Cola product over Pepsi and other drinks.10 SOFT DRINK PREFERENCE: From the above graph we interpret that about 70% of the respondents. we infer that though the respondents are more than satisfied by the Coca-Cola product range they would still like the company to introduce new drinks. 23% prefer Pepsi Products and only 75 prefer other drinks.11 Fig 2. we conclude that about 40% would like to see a new fruit drink being added to the product basket. This clearly states why Coca-Cola is market leader with almost 60% of market share. Majority of the people wanting to see a fruit drink is mainly because people are more health conscious now and want to manage their calorie intake. 26% want energy drinks.13 QUANTITY PREFERENCE: Page 78 . Fig 2.12 OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS EXPECTED BY CONSUMERS: From Fig 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. Fig 2. 20% alcoholic drinks and only 14% want another fizzy drink. From Fig 2.
Fig 2. we infer that about 62% of the respondent considers the pricing of Coca-Cola much more reliable than that of Pepsi.17 Page 79 . About 62% respondents said that they find Coca-cola products better than Pepsi and only 38% supported Pepsi products.15. From Fig 2.16 Fig 2. we infer that about 47% of respondents prefer to purchase PET bottle of Coca-Cola Products. 19% prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola.15 BRANDING & PRICING: From Fig 2. About 27% prefer to purchase glass bottles.13.14 Fig 2.14. it is concluded that respondents find Coca-Cola products better than that of Pepsi products. Fig 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” From Fig 2. About 38% respondents think that Pepsi have better pricing than that of Coca-Cola.
About 70% of respondents are satisfied with the Coca-Cola products while as 30% respondents are satisfied with the Pepsi products as shown in Fig 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” QUALITY & TASTE: From Fig 2. About 51% respondents think that Coca-Cola products are much easily available in the market. it’s clear that Coca-Cola products have better taste and quality than that of Pepsi. About 73% respondents consider that Coca-Cola products have very good quality and taste.49% consider that availability of Pepsi products is more in the market.19 AVAILABILITY & SATISFACTION: From Fig 2.19. it’s clear that there is slight difference between the availability of products of Coca-Cola and Pepsi.16 & 2. Fig 2. Page 80 .18.17. 27% respondents consider Pepsi products have better taste and quality.18 Fig 2.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 6. SUGGESTIONS AND CONCLUSION Page 81 .
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”
The suggestions made in this section are based on the market study conducted as part of “Coca-Cola India”. The suggestions are arranged in order of priority, highest first. Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer. The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.
The company should focus to bring some more flavors like health drinks and other
low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as it has already entered the energy drink arena with “Burn”. Coca-Cola’s distribution channel is mostly through retail. Whereas the competitors also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try to increase their distribution in these areas.
The company must keep a watch on its primary competitors in market in order to be
able to compete with them.
The company should use new attractive system of word of mouth advertisement to
keep alive the general awareness in the whole market as a whole.
The company should be always in a position to receive continuous feedback and
suggestions from its customers/ consumers as well as from the market and try to solve it without any delay to establish its own good credibility.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” A strong watch should be kept on distributors so that the goodwill of the BRAND doesn’t get affected.
Though there were certain limitations in the study that was conducted. The sample allowed for some conclusions to be drawn on the basis of analysis that was done on the data collected. The data has clearly indicated that Coca-Cola products are more popular than the products of Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and AVAILABILITY, thus it should focus on good taste so that it can capture the major part of the market. The study also indicated that the consumers are satisfied with the Coca-Cola products and purchase them without any specific occasions. In today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need to be always on your toes.
Marketing Management – Kotler Philip. Research Methodology – Kothari.
www.thecoca-colacompany.com www.news.bbc.co.uk www.india-server.com www.magindia.com www.coca-colaindia.com www.wikiinvest.com www.open2.net
Annual report of Coca-Cola 2008. Annual report of Coca-Cola 2009.
NAME: .............................................................................. GENDER: a) Male b) Female Do you drink Soft drinks? a) Yes b) No How often do you have soft drinks per week? a) Once a week b) Twice a week c) Thrice a week d) Everyday e) Rarely What drink comes to your mind when you think of soft drinks?
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” a) b) c) d) e) Coca-Cola Pepsi Other products of Coca-Cola Other products of Pepsi Other drinks What quantity do you usually prefer to buy? a) 200-250 ml Glass bottle b) 300 ml Can c) 500 ml Pet bottle d) 1 litre e) 2 litre What do you feel about Coca-Cola product range? a) Excellent b) Good c) Satisfactory d) Below Satisfactory e) Bad What occasions do you prefer to buy Coca-Cola products? a) Festivals b) Picnics c) Parties d) Cinemas e) Just like that What is your most preferred channel for purchasing Coca-Cola products? a) Super markets b) Retails c) Vendor Machines d) Pubs & Restaurants e) Multiplexes How much do you spend on Coca-Cola products per week? a) 50-100 b) 100-150 Page 86 .
..................................... ................................................................ Thank you! Page 87 ...“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” c) 150-200 d) Above 200 Put (X) mark in which ever you feel is appropriate? Parameters / Product 1) Branding 2) Quality 3) Price 4) Taste 5) Availability 6) Satisfaction Coca-Cola Products Pepsi Products What kind of products do you want Coca-Cola to introduce in the future? a) Fizzy Drinks b) Fruit Drinks c) Energy Drinks d) Alcoholic Drinks ........