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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: DR . KARTIK DAVE
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 .“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. 1.
“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. 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 . interpreting. And counsel before every action Research is a human activity based on intellectual investigation and is aimed at discovering.
monitor marketing performance. syrups and notready-to-drink powder products. Marketing research specifies the information required to address these issues. used to produce nearly 400 beverage brands. and evaluate marketing actions. distributors. Coca-Cola Company is the world’s leading manufacturer. In addition to this. marketer and distributor of non-alcoholic beverage concentrates and syrups. the product that has given the world its best-known taste was born in Atlanta. and improve understanding of marketing as a process. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates. Now operating in more than 200 countries and producing nearly 400 brands.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” opportunities and problems. manages and implements the data collection process. it also produces and markets sports drinks. The Coca. -Palmer (2000) INTRODUCTION TO COCA-COLA Coca-Cola. -American Marketing Association Marketing research is about researching the whole company’s marketing process. fountain retailers and fountain wholesalers. 1886. on May 8. It sells beverage concentrates and syrups to bottling and canning operators. the Page 7 . analyzes and communicates the findings and their implications. Georgia. designs the methods for collecting information. tea and coffee. refine.Cola Company began building its global network in the 1920s. generate.
Page 8 .a billion times a day. The Company aims at increasing shareowner value over time.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. For more than 115 years. thus increasing brand equity on a global basis. that system is dedicated to people working long and hard to sell the products manufactured by the Company. 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. 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 Boston to Beijing. to meet business goals and objectives.“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. from Montreal to Moscow. More than anything. Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. more than any other consumer product. 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. has brought pleasure to thirsty consumers around the globe. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. CocaCola.
INDUSTRY PROFILE Page 9 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2.
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. Consumers generally put less thought into the purchase of FMCG than they do for other products.THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG). most of the companies were forced to revamp their product. The Indian FMCG industry witnessed significant changes through the 1990s. By the turn of the 20th century.“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 . also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. distribution and customer service strategies to strengthen their position in the market. With the liberalization and growth of the Indian economy. As a result. marketing. the face of the Indian FMCG industry had changed significantly. the Indian customer witnessed an increasing exposure to new domestic and foreign products through different Page 10 .
These changes had a positive impact. Increased availability of retail space. making up 32% of the sector. Unlike some industries. The main contributor. The FMCG sector. FMCG share float in a steady manner irrespective of global market dip. is the South Indian region. 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. A person may put off buying a car but he will not put off having his dinner. creating new product. leading to the rapid growth in the FMCG industry. Though the absolute profit made on FMCG products is relatively small. Apart from this. 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. such as automobiles. which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs. rapid urbanization. Unlike other economy sectors. direct distribution. market. computers. they generally sell in large numbers and so the cumulative profit on such products can be large. HLL led the way in revolutionizing the product. distribution and service formats. the FMCG sector will Page 11 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” media. such as television and the Internet. FMCG does not suffer from mass layoffs every time the economy starts to dip. because they generally satisfy rather fundamental. as opposed to luxurious needs. distribution and service formats of the FMCG industry by focusing on rural markets. 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. and qualified manpower also boosted the growth of the organized retailing sector. It is predicted that in the year 2010.93000 cr.
e. Natural and Synthetic beverages. It is an industry. Fig 2. The different ways of segmenting it are as follows: Alcoholic.e. non-alcoholic and sports beverages. high levels of consumption and low levels of consumption.BEVERAGE INDUSTRY IN INDIA In India. in which the players constantly innovate. (Source: HCCBPL. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. so as to cater the right product to the right person. Monthly Circular) A BRIEF INSIGHT . Segmentation based on the amount of consumption i.143000 cr.0 BEVERAGES IN INDIA The beverage industry is vast and there various ways of segmenting it. in order to come up with better products to gain more consumers and satisfy the existing consumers. Page 12 . beverages for kids. for adults and for senior citizens. beverages form an important part of the lives of people.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” be worth Rs. In-home consumption and out of home on premises consumption. Age wise segmentation 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. Page 13 .“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. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health.e. It is important to look at the entire beverage market. taste. The beverage market has still to achieve greater penetration and also a wider spread of distribution. purchase and consume. 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. as a big opportunity. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. In order to leverage the beverage industry. it could be observed that consumers perceive beverages in two different ways i. refreshment. beverages are a luxury and that beverages have to be consumed occasionally. relaxation. stimulation. Communication should be relevant and trendy so that consumers are able to find an appeal to go out. well-being or prestige relevant to the category. 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.
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 create value and make a difference.“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. To inspire moments of optimism and happiness. VISION: Our vision serves as the framework for our Roadmap and guides every aspect of our business Page 15 . To refresh the world... which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions..
Diversity: As inclusive as our brands. lean and fast-moving organization. People: Be a great place to work where people are inspired to be the best they can be. we do well. Integrity: Be real. Page 16 . LIVE OUR VALUES : Our values serve as a compass for our actions and describe how we behave in the world. FOCUS ON THE MARKET: Focus on needs of our consumers. customers and franchise partners. together we create mutual. observe and learn. Quality: What we do. Leadership: The courage to shape a better future. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Possess a world view. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. it's up to me. Productivity: Be a highly effective. Accountability: If it is to be. quality growth. Passion: Committed in heart and mind. Collaboration: Leverage collective genius. Get out into the market and listen. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Partners: Nurture a winning network of customers and suppliers.“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. enduring value. WINNING CULTURE: Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality.
Remain constructively discontent. HISTORY OF COCA-COLA The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company. BE THE BRAND: Inspire creativity. a drugstore in Columbus. Georgia. when Atlanta and Fulton County passed prohibition legislation. WORK SMART: Act with urgency. essentially a non-alcoholic version of French Wine Coca. Georgia by John Pemberton. Be insatiably curious. In 1886. which were popular in the United States at the time due to the belief that carbonated water was good for the Page 17 . Remain responsive to change. Pemberton responded by developing Coca-Cola. Have the courage to change course when needed. 1886. Work efficiently. ACT LIKE OWNERS: Be accountable for our actions and inactions. Learn from our outcomes -. originally as a coca wine called Pemberton's French Wine Coca. passion. The first sales were at Jacob's Pharmacy in Atlanta. optimism and fun. It was initially sold as a patent medicine for five cents a glass at soda fountains.what worked and what didn’t. on May 8.“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. a European cocawine. Reward our people for taking risks and finding better ways to solve problems. He may have been inspired by the formidable success of Vin Mariani. Steward system assets and focus on building value.
So. at the Biedenharn Candy Company in 1891. in the summer of 1888.C. However. and impotence. Mississippi. further obscuring its legal origins. A. Its proprietor was Joseph A. and in 1910 Candler had the earliest records of the company burned. The same year. Candler set out to establish a legal claim to Coca-Cola in late 1888. The Coca-Cola Company (the current corporation). In 1892 Candler incorporated a second company. including morphine addiction. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. three versions of Coca-Cola — sold by three separate businesses — were on the market.O. By 1888. Bloodworth. Margaret Dozier and Woolfolk Walker. Mullahy and E. Meanwhile. in 1914. headache. Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. Murphey. John Pemberton declared that the name "Coca-Cola" belonged to Charley. Biedenharn. The first outdoor wall advertisement was painted in the same year as well in Cartersville.H. dyspepsia. but the other two manufacturers could continue to use the formula. Cans of Coke first appeared in 1955. and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. Mayfield. Candler purchased exclusive rights to the formula from John Pemberton. In 1935. after the company made minor changes in the sourcing of some ingredients. neurasthenia. The first bottling of Coca-Cola occurred in Vicksburg.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” health.O. By the time of its 50th anniversary. Coca-Cola was sold in bottles for the first time on March 12. After both failed to catch on. while suffering from an ongoing addiction to morphine. Dozier came forward to claim her signature on the bill of sale had been forged. Pemberton sold the rights a second time to four more businessmen: J. Georgia. The Page 18 . it was certified kosher by Rabbi Tobias Geffen. Pemberton claimed Coca-Cola cured many diseases. the drink had reached the status of a national icon in the USA. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. Candler sold his beverage under the names Yum Yum and Koke. in order to force his two competitors out of the business. C. 1894.
Tennessee. effectively becoming parent bottlers. Coca-Cola Zero. and zinc. sweetened partly with a blend of aspartame and acesulfame potassium. The company gave in to protests and returned to a variation of the old formula. but Coca-Cola management was unprepared for the public's nostalgia for the old drink. The loosely termed contract proved to be problematic for the company for decades to come. attempted to change the formula of the drink with "New Coke"." Page 19 . but two entrepreneurs from Chattanooga. the name "Coca-Cola Classic" was changed back to "Coca-Cola. On July 5. Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6. in Canada. as an over-the-counter remedy for nausea or mildly upset stomach. On February 7. 2005. proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. 1985. On March 21. Legal matters were not helped by the decision of the bottlers to subcontract to other companies. Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi. On April 23. very different from the much later hobble-skirt design that is now so familiar. In April 2007. 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. Asa Candler was tentative about bottling the drink. Candler never collected his dollar. Thomas and Joseph B. Whitehead. 1985. or Coke syrup. B12. 2005. the same sweetener currently used in Pepsi One. was and is sold separately at pharmacies in small quantities. it announced another diet product. magnesium. 2005. it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. niacin. Coca-Cola. but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. leading to a backlash. Benjamin F. Coke concentrate. marketed as "Diet Coke Plus”.“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. amid much publicity. under the name Coca-Cola Classic on July 10. In 2007.
and the plastic used in bottles. the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. eliminating the need to differentiate between the two. Since spinning of Coca-Cola Enterprises (CCE) 24 years ago. KO has also responded to consumers’ changing tastes with new.8 billion net income. Dollar (USD). In January 2009. Costco stopped restocking its shelves with Coke and Diet Coke. Coca-Cola has remained profitable. due to a dispute over wholesale prices of Coca-Cola products. slowing consumer spending in Coke's large North American market compounds the challenge of increasing costs and a weak economic environment. the soft drink market has changed dramatically with consumers buying fewer soft drinks and more non-carbonated beverages. The size and variety of KO’s offerings in the CSD category. such as Powerade and Dasani water. On February 25. the aluminium used in cans. GLOBAL MARKET SHARE OF COCA-COLA In 2009. which constitutes 78% of KO’s sales. Coca-Cola earns approximately 75% of revenue from international sales.such as the corn syrup used as a sweetener. KO’s profits are also vulnerable to the volatile costs for the raw materials used to make drinks . coupled with the unparalleled brand equity of the Coca-Cola trademark. exposing it to currency fluctuations. Furthermore.3 million. The change is part of a larger strategy to rejuvenate the product's image. Strong international growth has also more than offset a weak domestic market. An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD). has allowed KO to maintain its share of this important market. The formula remained unchanged. Though the non-CSD market is growing quickly.“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.S. Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. which are particularly adverse with a stronger U. non-CSD product launches and acquisitions such as that of Glaceau in 2007. Finally. In November 2009. Under the new deal. Despite these challenges. Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE) for $12. the company generated revenues of $31 billion with $6. Page 20 .
In April 2010. which derives approximately 75% of its sales from outside North America. the global economy has fallen into a recession. However the company was unsuccessful with its purchase of Huiyuan as it broke Page 21 . Still. and recent purchases of additional shares increased Coke's stake to 58%. the British fruit smoothie maker. and estimates of Nidan's purchase price are between $560-$620 million. TRENDS AND FORCES The Global Economic Recession Threatens Overall Demand: In 2008 and 2009. The company is 75% owned by a private equity firm in London and 25% by its Russian founders and controls 14.2 billion dollars. becoming a European-focused producer and distributor.5% of the Russian juice market. The deal covers the next 20 years with an option to renew for an additional 20 years. Coca-Cola Company purchased a majority share of Innocent. If successful. such as that of Chinese juice maker Huiyuan for $2. giving the company control over 90% of the total North America volume. Coca-Cola Enterprises will take over Coke's bottling operations in Norway and Sweden. passing Pepsi's 30% market share. Not just the United States but countries from all over the world have felt the impacts of the 2008 Financial Crisis.“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. the company has positioned itself well in international markets both organically and through acquisitions. The Russian juice market is estimated to be $3. the purchase would add to Coca-Cola's 20. OAO Nidan Juices. Last year the company bought an 18% share of the company for more than $45 million. 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). In March 2010. In return.5% market share. In June 2010.4 billion. Coca-Cola Company entered into discussions to buy the Russian juice company. This may be a problem for Coke.
a predicament for manufactures throughout the beverage industry. This proposal would affect all non-diet. This is true across most of KO's markets. Integrated Bottler Strategy Increases Flexibility: After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging beverage maker. This strategy represents a Page 22 . KO is faced with the task of balancing the risk of new innovations with the low growth rates of established brands. many state public school systems banned the sale of soft drinks on their campuses. one of the first areas that he targeted for improvement was KO's frayed relations with its extensive network of bottlers. Within the CSD segment consumers have been moving away from sugared drinks. Isdell has continued to increase KO's interest in its bottlers through stake purchases or outright buyouts. On March 5. Consumer demand for CSD has been negatively affected by concerns about health and wellness. it has recently begun to increase its development of both diet CSD and non-CSD beverages. and water. These factors have driven a shift in consumption away from CSD to healthier alternatives. Though KO has been somewhat slow to respond to this shift in consumer preferences. full calorie drinks produced by KO. Since consolidating all company-owned bottlers into the Bottling Investments division. juices. New Aversion to Soda Threatens Main Business: 74% of the Coca Cola Company's products are classified as carbonated soft drinks. opting instead for diet beverages.“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. 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. making it particularly sensitive to changes in demand for CSD. Coke's CEO said that emerging markets are bouncing back quicker than more developed markets. such as tea. In 2006. 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. 2010. which do not generally contain any sugar or calories.
In 2008. Additionally.S. Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI) for double-digit volume growth in that country. Although this is a seemingly small decrease. Although the company is based in the US. bottled water was the third most popular beverage (behind soda and milk). an American iced-tea company. KO derives about 75% of its operating income from outside Page 23 . Dollar (USD). a ready-to-drink tea made by Ferolito. the Wall Street Journal reported that sales of bottled water had fallen for the first time in five years. 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. industry experts don't expect bottled water to bounce back anytime soon.8 billion gallons. Dollar Affects International Performance: Another trend affecting Coca-Cola is the relative strength of the U. Coca-Cola Enterprises (CCE) now distributes Arizona. Follow ing this trend. 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 has signed new agreements with many of its bottlers which allow them to distribute drinks produced by other companies. down to 8. In KO's 2007 Q3 Analyst call. Isdell sees these agreements as another way of taking advantage of the rapidly growing non-CSD market. 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 August 2009. but compared to 2007. Dasani bottled water's revenues fell by double digits.“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.7 billion gallons from 8. Americans consumption declined for the first time. For example. this decrease is emblematic of the bottled water industry as a whole.
corn. In 2007.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” United States. S uch a price increase would likely hurt KO. the prices of these commodities rose drastically with general commodities bubble and dramatically pressured margins. though in a more indirect way. 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. the bottler may be forced to drastically raise prices to compensate. and provide a possible incentive for consumers to switch to other companies’ beverages. They receded in 2008. If the raw materials necessary for bottling become more expensive. it has a negative effect on KO's earnings. KO itself is responsible for purchasing the raw materials used to make its concentrates and syrups. the company is very sensitive to the strength of the dollar. lowering earnings. given the competitive nature of the non-alcoholic beverage industry. Thus. but the possibility of another Page 24 . it also limits larger gains from drastic downswings in the dollar's value. Because of this. 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. Aluminium. Changes in the production costs of bottlers can also impact KO’s profitability. if the dollar strengthens (as it did in the second half of 2008 and 2009). As foreign currencies weaken relative to the dollar. goods sold in foreign markets are suddenly worth fewer dollars back in the US. KO has broad exposure to foreign currencies and actively hedges a large portion of these to avoid wide swings in earnings from currency fluctuations. Variations in the prices for these goods can affect the company’s total cost of production as well as its profit margins. CocaCola executives expect currency fluctuations to adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by high single digits. Although this hedging insulates from the potential downside of a strengthening dollar.
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.
000 servings of just "Coca-Cola" are sold in the United States alone. However. All five of these companies make a portion of their profits outside of the United States. "The Coca-Cola Company" is the largest soft drink company in the world. Aside from these major players. PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray. PepsiCo's U. market share has increased to 30.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” industry.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. smaller companies such as Cott Corporation and National Beverage Company make up the remaining market share. Every year 800. CocaCola has higher sales in the global market than PepsiCo. 2006c).S. Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola. Diet Coke.8%. and Sprite). Bottling plants Page 26 . Fanta. Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of 21%.000. and they are all globally established which creates a great amount of competition. while the Coca-Cola Company's has decreased to 42. it had lower sales in 2005 than did PepsiCo (Murray. According to Beverage Digest's 2008 report on carbonated soft drinks. 2006c).
In 1972. Pepsi Co Company struck a barter agreement with the government of the Soviet Union. in which Pepsi Co was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. In 1988. including fountain syrups. This has put Pepsi at a significant disadvantage compared to US market. PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the Page 27 . 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. Saudi Arabia and Pakistan. In Russia. Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended.5%. PepsiCo bought out its partners and ended the joint venture in 1994. However. Coca-Cola manufactures.“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. Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered. The Coca-Cola Company returned in pursuance of India's Liberalization policy. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. exceptions include India. In 2005. In 1993. 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). Overall. By most accounts. distributes and markets non-alcoholic beverage concentrates and syrups.
with the growth in emerging markets significantly expected to exceed the developed markets. Pepsi Stuff. In the late 1990s. Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands. Due to its success. such as vanilla and cherry. Pepsi outperformed Coke during the summer of the Atlanta Olympics. They could redeem the points for free Pepsi lifestyle merchandise. rivalry in international market is going to be more pronounced. which was an instant success. Pepsi advertisements often focused on celebrities. The Brand Keys Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries. Consumers were invited to "Drink Pepsi. Page 28 . The new competition between rival sellers is to create new varieties of soft drinks. After researching and testing the program for over two years to ensure that it resonated with consumers. choosing Pepsi over Coke. in order to increase sales and getting new customers. Tens of millions consumers participated. Pepsi started hiring more popular spokespersons to promote their products.S.S. Brand name loyalty is another competitive pressure. held at Coke's hometown where Coke was the lead sponsor for the Games. the program was expanded to include Mountain Dew into Pepsi's international markets worldwide. The company continued to run the program for many years.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” U. continually innovating with new features each year." In 1975. Pepsi launched its most successful long-term strategy of the Cola Wars. as one of the first American products in the Soviet Union. supporting Pepsi's positioning as "The Choice of a New Generation. became a symbol of that relationship and the Soviet policy. Pepsi launched Pepsi Stuff. Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other. Pepsi. 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. Get Stuff" and collect Pepsi Points on billions of packages and cups.
the soft-drink industry is fully saturated and growth is small. then submitting codes online for a certain number of points. and establishing a new soft drink traditionally have been viewed as extremely high. New entrants cannot compete in price without economies of scale. Capital requirements for producing. In addition. this makes the likelihood of potential entry by new players quite low. except perhaps in much localized situations that matter little to Coke or Pepsi. POTENTIAL ENTRANTS: New entrants are not a strong competitive pressure for the soft drink industry. Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points". According to industry experts. Both were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops. promoting. 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 makes it very difficult for new. Yet. with Pepsi Stuff ending its services and Coke Rewards still offering prizes on their website. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels. with 'new age' beverages selling to well-informed and health-informed and health-conscious consumers. This issue was beginning to grab the attention of both Coke and Pepsi in the summer of 1992. when they both were not able to explain a drop in their June 1992 sales. Page 29 . trucks. and labour. some industry observers question whether a new time is coming. Another barrier to entry is the high fixed costs for warehouses. such as mp3 downloads.“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. However. unknown entrants to start competing against the existing firms. and economies of scale. This cola war has now concluded. Both Coca-Cola and coke previously had a partnership with the iTunes Store. while this view may reflect conventional wisdom.
“Looking ahead. juices etc. sports drinks. and tea.” Substitute products are those competitors that are not in the soft drink industry. 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. 2005). Citrus beverages and fruit juices are the more popular substitutes. But as the pop fight has topped out. the global Page 30 . It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor. Barista and CCD stores that offer many different flavours to appeal to all consumer markets. coffee and tea are competitive substitutes because they provide caffeine. In addition. coffee.“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. Blended coffees are also becoming popular with the increasing number of Starbucks. The growth rate has been recently criticized due to the market saturation of soft drinks. There are progressively more varieties in the water and sports drinks that appeal to different consumer's tastes. the industry's giants have begun relying on new product flavours and looking to noncarbonated beverages for growth. Overall total liquid consumption in the United States in 1991 included CocaCola's 10% share of all liquid consumption. but also appear healthier than soft drinks. despite solid growth in consumption. Availability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. “For years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi. Such substitutes for Coca-Cola products are bottled water. Datamonitor (2005) stated.
confections. Profitability in the soft drink industry will remain rather solid.” The change attributed to the other growing sectors of the non-alcoholic industry including tea & coffee is 11.to bottle the companies' products and to whom each company sells its patented syrups or concentrates. plus upholding the territorial integrity of soft-drink franchises. Coke and Pepsi were somewhat restricted in owning bottling facilities. which was viewed as a restraint of free trade. soft drink leaders are establishing themselves in alternative markets such as the snack. especially in the case of Coke. Because of this. and sports drinks industries. these bottlers are in effect the 'conduit' through which these international cola brands get to local consumers Through the early 1980's. While Coke and Pepsi issue their franchise. changed that by signing legislation to allow soft-drink companies to own bottling companies or territories. BARGANING POWER OF BUYERS: Individual consumers are the ultimate buyers of soft drinks. plus a few large franchisees that owned many locations. Dr pepper/Snapple. So in order to compete with the substitutes industry. bottled water.“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. Pepsi had a collection of similar franchises. However. Coke's domestic bottlers were typically independent family businesses deriving from franchises issued early in the century. reflecting stagnation of market prices. 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). Jimmy Carter.3%. a Coke fan.8% and bottled water is 9. Page 31 . In order for soft drink companies to continue to grow and increase profits they will need to diversify their product offerings. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines. shortly before he left office. Coke and Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned. Until 1980.
“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Also. soft drink industry sales. and vending accounted for approximately 13%. BARGANING POWER SUPPLIERS: The principal raw material used by the soft-drink industry in the United States is high fructose corn syrup. the three most important channels for soft drinks are supermarkets. a form of sugar. supermarkets accounted for about 40% of total U. a subsidiary of the Monsanto Company. and Pepsi distributes its fountain syrup through its bottlers. which expired at the end of 1992. It likewise is available from numerous sources. Legal and Environmental. aspartame was available from just one source -the NutraSweet Company. Other retailers represent the remaining percentage. Coca-Cola beverage. Until January 1993. 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 . a sweetening agent used in low-calorie soft-drink products. PESTEL ANALYSIS OF COCA. Social. They view the recently expired aspartame patents as only enhancing their power relative to suppliers. The principal raw material used by the soft-drink industry outside the United States is sucrose. 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. Another raw material increasingly used by the soft-drink industry is aspartame. In 1987.S. Economic. fountain sales. Technological. fountain sales represented about 25%.COLA PESTLE stands for Political. Coke managers have long held 'power' over sugar suppliers. which is available from numerous domestic sources.in the United States due to its patent. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling companies. and vending. Coca-Cola uses its own network of wholesalers for their fountain syrup distribution.
The company also is subjected to income tax policies according to the jurisdiction of various countries. It creates an inability for the company to Page 33 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” fast growing economy. it is an agency in the United States Department of Health and Human Services. 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. amount of permitted goods by the government and the service provided by the government. Globally. The accounting standards used by the company changes from time to time which have a significant role in the reported results. 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. environmental policy. The political factors may include tax policy. Its headquarters is in USA and it has started opening offices in foreign countries as well. Moreover. In addition to this. 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. 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. 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. Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and Drug Administration). 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. laws imposed on the recruiting labours. The company also has to take into consideration of the regulation imposed by FDA on plastic bottled products. trade restrictions.
“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. when there is an increase in the inflation the employee demand for a higher wage rate to cope up with the cost of living. This is a threat in the external environment faced by the company. Hence there is a definite impact in the revenues due to the fluctuating foreign currency exchange rates. It gives the company or the marketer a good chance to market the product. Along with this the company uses 63 various types of currencies other than US Dollar. The company first analyzes the economic condition of the country before venturing into that country. it may deter the company in further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. A strong and weak currency tends to affect the exporting of the products globally. exchange rates. wage rates and unemployment in the country. It includes the economic growth of the country. interest rates. Coca-Cola. When there is an increase in the interest rates. When there is an economic growth in the country. inflation rates. Inflation and wage rate go hand in hand. Economic Factors: The economic factors analyze the potential areas where the firm can grow and expand. 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. 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. The net operating profits for the company outside US stands at around 72%. in the past identified this correctly and rightly started its distribution across various countries. the purchasing power among people increases. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. Page 34 .
Population growth rate and the age distribution is another social factor to be considered. is directly related to the customer. Consumers and government are becoming increasingly aware of the public health consequences. mainly obesity which is the second social factor in the soft drinks industry. population growth with age distribution. health consciousness among people. so social changes are the most important factors to consider. 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. The company cannot change the social factors but the company has to adjust itself to the changing society. Adults used to celebrate mostly with alcohol. It introduces minimum number of products according to the culture of the country and the attitude of the people. Coca-Cola which is a B2C company.“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. when entering into a country it does not introduce all the products. they are concerned with the longevity of their lives. Each and every country has a unique culture and attitude among the people. Since many are aware. It inspired the company to venture into the areas of Diet coke and zero calorie soft drinks. Coca-Cola has about 3300+ products in their stable. The age distribution of the country becomes important for the success of the product in a country. It is very important because non-alcoholic markets have most of its share from the children and youngsters. Hence coke introduced dietary products for those youngsters who can enjoy coke with zero calories. The problem of obesity is taken seriously among the youngsters who like to maintain a good physique. Page 35 . In one of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly concerned with nutrition”. emphasis on safety. The company adapts various management strategies to adapt to these social trends. It is very important to know about the culture before marketing in a particular country.
environment protection. labour practices. The advancement in technology in the company has led to: Introduction of new ways for the availability of Coca-Cola. 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. The manufacturing and distribution of the products is relatively a Low-Tech business. product safety. it introduced general vending machines all over the world. In the US the products of the company is subjected to various acts like Federal Food. although the creation of a new product with the perfect blend and taste is a science (an art in itself). Occupation Safety and Health Act. the laws include competition. introduction of recyclable and non refillable bottles. introduction of cans which are trendy. the Federal Trade Commission Act.“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. Technological contributions are most important in packaging. Legal Factors The legal factors include discrimination law. Hence it is necessary for the company to maintain a cordial relation with their bottling partners. If the company do not give ample support in pricing. advertising and labelling. The company rely on their bottling partners for a significant portion of their business. employment law and health and safety law. Drug and Cosmetic Act. In products it led to the development of new products like Cherry Coke. Diet Coke etc. stylish and popular among the youngsters. The technical advancement in the bottling industries include. marketing and advertising then the bottling industry while increase their short term profits. In Coca-Cola the business is subjected to various laws and regulation in the numerous countries in which they do the business. container deposits. may become detrimental to the company. antitrust law. Page 36 . customer law.
a branding consultancy. These requirements if become applicable in the future the company must be ready to accept and have necessary changes in hand for the same.The Business Week-Inter-brand valued Coca-Cola at $67. Various jurisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health consequences. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006. Coca- Page 37 . Business-Week and Inter-brand. The company has a leading brand value and a strong brand portfolio. SWOT ANALYSIS OF COCA-COLA Fig 2. Usage of renewable plastic in the PET bottles is followed by the company strictly. which affects the company profitability and also the production and distribution of the products. recognize. It must adhere to the norms and market the product accordingly.“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. the production. Also the company must follow the environmental issues related to the product manufacturing.000 million in 2006. sale and advertising of all the products are subjected to various laws and regulations. Environment Factors These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. Changes in these laws could result in increased costs and capital expenditures.1 SWOT ANALYSIS OF COCA-COLA STRENGTHES: WORLD’S LEADING BRAND Coca-Cola has strong brand recognition across the globe. distribution. packaging and distributing in various countries.
The company owns four of the top five soft drink brands in the world: Coca-Cola. Strong brands allow the company to introduce brand extensions such as Vanilla Coke. Over the years.4 billion.“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. CocaCola owns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world. Coca-cola is one of the best recognized global brands. LARGE SCALE OF OPERATIONS With revenues in excess of $24 billion Coca-Cola has a large scale of operation. The company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones. Coca-Cola is the largest manufacturer. the company has made large investments in brand promotions. Consequently. The company’s operations are supported by a strong infrastructure across the world. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. Coca-Cola owns a large portfolio of product brands. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates.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. distributor and marketer of non-alcoholic beverage concentrates and syrups in the world. Cherry Coke and Coke with Lemon. The company currently sells its products in more than 200 countries. Sprite and Fanta. ROBUST REVENUE GROWTH IN 3 SEGMENTS Page 38 . Diet Coke. it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. In addition. Of the approximately 52 billion beverage servings of all types consumed worldwide every day. beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.
South Asia” and “Pacific Rim” bottling investments. Drug.The company was accused by the Centre for Science and Environment (CSE) of selling products containing pesticide residues. There have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle East and U. foreign policy. the US consumer group the Centre for Science in the Public Interest filed a class-action lawsuit against Coca-Cola. Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006. On 10 December 2008. over 2005. The lawsuit was in regards to claims made. accounted for 34. the US Food and Drug Administration (FDA) wrote to Mr.“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. South Asia. Revenues from Latin America grew by 20. along Page 39 . the three segments of “Latin America”. and Pacific Rim’ and Bottling investments. 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. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue.S. 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.4% during fiscal 2006. and Pacific Rim’ grew by 10. The company received negative publicity in India during September 2006. President and Chief Executive Officer. Muhtar Kent. “East. ‘East.8% of total revenues during fiscal 2006.9%. in three operating segments.6% while revenues from the bottling investments segment by 19. During the same period. These three segments are Latin America. and Cosmetic Act. In January 2009. Together. revenues from ‘East. South Asia.
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. North America is CocaCola’s core market generating about 30% of total revenues during fiscal 2006.Decline in cash from operating activities reduces availability of funds for the company’s investing and financing activities. the company also expects performance in North America to be weak during 2007. The decrease was also the result of certain marketing accruals recorded in 2005. from $6.957 million in 2006. a strong performance in North America is important for the company. Claims say that the 33 grams of sugar are more harmful than the vitamins and other additives are helpful. which.“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. in turn. OPPORTUNITIES: Page 40 . increases the company’s exposure to debt markets and fluctuating interest rates. Moreover. Therefore. Cash flows from operating activities decreased 7% in 2006 compared to 2005. Net cash provided by operating activities reached $5. SLUGGISH PERFORMANCE IN NORTH AMERICA Coca-Cola’s performance in North America was far from robust. 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.423 million in 2005. 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. DECLINE IN CASH FROM OPERATING ACTIVITIES The company’s cash flow from operating activities declined during fiscal 2006. I n North America the sale of unit cases did not record any growth.
reappointed Coca-Cola China Industries (CCCIL). The Page 41 . The market for bottled water in the US generated revenues of about $15. its bottling joint venture with the Kerry Group. a bottling company in South Africa. its acquisitions included Kerry Beverages. slightly sweetened refreshment drink) segment is growing by about $10 billion annually. On 25 February 2010. which was subsequently. These also give Coca. the bottled water market is forecast to reach $19.6 billion in 2006.Cola an opportunity for growth. 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. the revenue of flavoured water (water-based. Stronger international operations increase the company’s capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. This strategy of coca cola strengthens its operations internationally. The market's consumption volume is expected to rise to 38. Coca-Cola has also acquired a 100% interest in TJC Holdings. Coca-Cola also made acquisitions in Australia and New Zealand during 2006.6 billion units by the end of 2010. Market consumption volumes were estimated to be 30 billion litres in 2006. The acquisition extended Coca-Cola’s control over manufacturing and distribution joint ventures in nine Chinese provinces.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” ACQUISITIONS During 2006. (KBL). Coca-Cola acquired a controlling shareholding in KBL. through new product launch or greater penetration of existing markets. In terms of value. in Hong Kong.9% during 2005-2010. In the bottled water market. In Germany the company acquired Apollinaris which sells sparkling and still mineral water. This represents a CAGR of 6. These acquisitions strengthened Coca-Cola’s international operations.3 billion by the end of 2010. Coco cola confirms to acquire the Coca cola enterprises (CCE) one the biggest bottler in North America.
Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008. The economic influence of Hispanics is growing even faster than their population.S Hispanics are growing rapidly both in number and economic power. Cadbury Schweppes. PepsiCo is one of the company’s primary competitors. they have become more important to marketers than ever before. The US Census estimates that by 2020. the Hispanic population will reach 60 million or almost 18% of the total US population.a 55% increase over 2003 levels.6 million US households were estimated to be Hispanic. Coca-Cola has extensive operations and an extensive product portfolio in the US. advertising. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavoured water. Also. In 2006. Other significant competitors include Nestle. As a result. the company faces competition from various non-alcoholic sparkling beverages including juices and nectars and fruit drinks. sales Page 42 . The company faces intense competition in various markets from regional as well as global players. Competitive factors impacting the company’s business include pricing. about 11. GROWING HISPANIC POPULATION IN U.“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. including the US. In many of the countries in which Coca-Cola operates. This translates into a Hispanic population of about 42 million. THREATS: INTENSE COMPETITION Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry. The company can benefit from an expanding Hispanic population in the US. Groupe DANONE and Kraft Foods. which would translate into higher consumption of Coca-Cola products and higher revenues for the company.
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. Such actions could. 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. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners. in the long run. then the partners may take actions that. this representing a compound annual growth rate (CAGR) of only 0. In addition.9 billion in 2005. The performance of the Page 43 . may be detrimental to Coca-Cola. product innovation. Intense competition could impact Coca-Cola’s market share and revenue growth rates.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” promotion programs. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola. have an adverse effect on Coca-Cola’s profitability. its bottling partners. many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. The US carbonated soft drinks market generated total revenues of $63. SLIGGISH GROWTH OF CARBONATED BEVERAGES US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. In addition. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US. and brand and trademark development and protection. In 2006. Such dependence on third parties is a weak link in Coca-Cola’s operations and increases the company’s business risks. 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. some of whom are publicly traded companies.2% for the five-year period spanning 2001-2005. make their own business decisions that may not always be in line with the company’s interests. As independent companies. while maximizing their own short-term profits.
with an anticipated compound annual rate of change (CAGR) of -0. Moreover in the recent years. Coca-Cola’s revenues could be adversely affected by a slowdown in the US carbonated beverage market. Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to Page 44 . Coca-Cola already expects its performance in the region to be sluggish during 2007.9 billion by the end of 2010. 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. and have been implicated for facilitating poor diet and increasing childhood obesity. the US is the company’s core market.3% for the five-year period 2005-2010 expected to drive the market to a value of $62. Moreover.“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.
Further. Presently. they featured the same quote with different regional entities. Along with. which turned out to be a mistake. which got them credit of being one of the biggest investor in the country. 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 presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. LIMCA. their sales figures were not so impressive. Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”. Page 45 .e. hence leading to profit.“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. In the southern part. and reached to a conclusion that competitive pricing was unavoidable. coca cola returned to India and witnessed a different culture and economic platform. they had to re-think their market strategies. Coca-Cola invested heavily in India for the first five years. and mango flavoured. During their absence. they had different advertising campaigns for different regions of the country. “Narial Pani”. in a hope to beat the main competitor (Pepsi). One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’. “Lassi” etc. In 1993. Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i. Hence. They ascertained that in India 3 As must be applied. 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. Parle brothers introduced a new type of cola called THUMS UP. their strategy was to make Bollywood or Tamil stars to endorse their products. MAAZA. Since then they introduced a 200 ml glass bottle for Rs. After 16 years of absence. they also formulated a lemon flavoured drink. Availability and Acceptability. In various regions they tried portraying coca cola products with different regional food products.5. They launched an extensive market research in India. however. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover. Affordability. coca cola bought the whole Parle Brother operation.
the business system of the Company directly employs approximately 6. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket. 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. 25 owned by the Company.“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. On the distribution front. The Indian operations comprises of 50 bottling operations. a network of 21 contract packers manufactures a range of products for the Company.000 people. compared to its arch rival.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s favourite soft drink brand. supply. with another 25 being owned by franchisees. and indirectly creates employment for more than 125. Diversifying their product range and having a competitive pricing policy. 36% in Fruit drinks Segment. 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. and distribution System. With virtually all the goods and services required to produce and market Coca-Cola being made in India. 33% in Packaged water Segment. Page 46 . they have regained their throne. music & food.000 people in related industries through its vast procurement. That apart. movies. PRODUCTS OF COCA-COLA INDIA COCA-COLA:In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. even in remote and inaccessible parts of the nation. In 2002. Pepsi. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary.
300ml.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” GLASS 200ml. 2. 2L.1.25L. 100ml Table . Originally introduced in 1977. 500ml.5L. Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. 2. 300ml. 500ml. 1000ml PET 500ml. 500ml.5L.25L.1. Thums up was acquires by The Coca-Cola Company in 1993. Thums up Page 47 . 1. Derived from “Nimbu” + “Jaise” hence Lime Sa. 500ml. Limca can cast a tangy refreshing spell on anyone. 1000ml PET 500ml.1 CAN 330 ml FOUNTAIN VARIOUS SIZES THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. Limca has remained unchallenged as the No.0 CAN 330 ml FOUNTAIN VARIOUS SIZES LIMCA:Limca was introduced in 1971 in India. anywhere.1 sparkling drink in the cloudy lemon segment. 1. 100ml Table . GLASS 200ml. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of “Freshness”. 2L.
This brand clearly seeks to separate the men from the boys. Launched in 1999. 100ml Table . 300ml. Over the years Fanta has occupied a strong Page 48 . 300ml PET 500ml. 1000ml PET 500ml. 2.1. mature and uniquely masculine attitude.3 FANTA:Fanta entered the Indian market in the year 1993. fizzy taste and it confident. 500ml. RGB 200ml.5L. 2000ml. GLASS 200ml. 600ml. 2L. 1500ml. 1.25L.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. 500ml. 2250ml CAN 330 ml FOUNTAIN VARIOUS SIZES Table – 1. Sprite with its cut-thru perspective has managed to be a true teen icon.“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. 1250ml.
tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. forming a frozen concentrate that when reconstitute created orange juice.5L. MAAZA:Maaza was introduced in late 1970’s. 100ml Table – 1.“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”. This positive imagery is associated with happy. 2L. 1 litre.25L. Available in 3 PET pack sizes i.e.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. 1. Perceived as a fun youth brand. They branded it Minute Maid a name connoting the convenience and the ease of preparation. 500ml. 1. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. 400ml. The company developed a process that eliminated 80% of the water in the orange juice. 2. cheerful and special times with friends.25 litres. Maaza has today come to symbolise the very spirit of Page 49 . 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. GLASS 200ml. 300ml PET 500ml. Fanta stands for its vibrant colour.
GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004.2L Table – 1. Caffe Latte. Available in PET 500ml and 1000ml. Universally loved for its taste.5 POCKET MAAZA 200ml KINLEY:The importance of water can never be understated. Cardamon Tea. Airports. Mochaccino. Particularly in a nation such as India where water governs the lives of the millions. Today Georgia coffee is available at Quick-Service Restaurants. Maaza is the mango lover’s first choice. Cinemas and in Corporates across all major metros in India. Cappuccino. 250ml PET 250ml. 1.6 MARKETING MIX OF COCA-COLA INDIA Page 50 . The Georgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. Americano. COLD BEVERAGES Ice Teas. Table – 1.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” mangoes. 600ml. colour. thickness and wholesome properties. Hot Chocolate. RGB 200ml. Kinley water comes with the assurance of safety from the Coca-Cola Company. HOT BEVERAGES Espresso. be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Cold Coffee.
In 2002 Kinley with 35% market share had become the leader in the retail PDW segment and was contributing 20% of CCI’s revenues. Maaza. This meant CCI had three orange.“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. Canada Dry and Sport Cola to CCI’s product line. In 2000. As a result 12 more bottlers were brought into CCI’s fold. Page 51 .e. The volumes went up by 30% demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5 was rolled out countrywide in January 2003. To make it affordable. Sprite. but it was an attractive proposition for bottlers as it increased plant utilization rates. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra. Minute Maid and Georgia Gold. The advertising Campaign highlighted the affordability and Indian image. priced at Rs 3 per cup in testing marketing exercise conducted in mid – 2002. Fanta. This acquisition added Crush. Packaged drinking water in India was a Rs 1. the parent company acquired Cadbury Schweppes. PDW was a low margin – high volume business. Bottled water was another area where Coca-Cola identified major opportunities. Coca-Cola. PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like India. clear lime and cola drinks each in its portfolio.000 cr industry and growing by 40% every year. In early 1999. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers. Coke introduced Kinley in 200ml pouches for Re. CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water). In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s Aquafina. Thums Up. In 2002. The product not only faced intense competition but also was difficult to differentiate.
PROMOTION:In the initial years. CCI focused on establishing the Coca-Cola brand quickly. Each region had a president at the top. support systems and culture to leverage the local capabilities. with 37 bottling plants. human resources and bottling operations. He reported to the RGM as well as the head of bottling at the head quarters. who in turn reported to CEO. Each of the six regions had on an average six bottling plants. The four bottling operations. Bottling operations were divided into four companies directed by the bottling head from headquarters. Under the new plan. Each plant was headed by an Area General Manager (AGM) and held profit center responsibility for a business territory. The bottlers taken over by Coke also had problems adjusting to a new work culture. as a deliberate strategy. The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. Central and Southern regions. Coke. CCI's operations had been divided into North. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. The aim was to effectively align CCI's corporate resources. decided not to spend heavily on promoting Thums Up. finance.“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. They argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and Page 52 . Inadequate marketing support for other Parle brands also led to their declining market shares. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. were merged into Hindustan Coca-Cola Beverages (HCCB). marketing and brand building were taken up locally. with divisions comprising marketing. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. CCI shifted to a six region profit center set up where product customization and packaging. Thumps Up remained neglected. The heads of the divisions reported to the CEO. All the RGMs reported to VP (Operations.
CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign. CCI spent $3. Coke had plans to launch Rimzim. Limca and Thumps Up. was repositioned as a juice brand and saw a growth of almost 30% in 2001. The revised value of CCI's assets after the charge was $300 mn. They were focused on mega events like the 1996 Cricket World Cup held in India. CCI signed up celebrities like Aamir Khan. the mango drink. During 90'ies Coke's promotion efforts did not seem to be effective.“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. Since India was a large country of different tastes and cultures. and Sunil Gavaskar to promote Coke. Coke wrote off investments in India. it had become India's No. But things were far from normal. dealers had been pampered by offering expensive overseas trips.5 mn to beef up advertising and distribution for Thumps Up. PESTEL ANALYSIS OF COCA-COLA INDIA Page 53 . In 1998 localization of marketing efforts. amounting to $400 Mn.2 cola drink after Pepsi. Maaza. This can be seen by Coca-Colas advertising campaigns. In 2000. To maintain good relationships with bottlers and avoid defections to the other camp. CCI customized its marketing strategy for different regions. Coke also began efforts to rejuvenate the Parle brands. Thumps Up in Mumbai and Andhra Pradesh. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. In 1998. Aishwarya Rai. By 2002. a spicy soda drink in North Maharashtra. It promoted the Coke brand in Delhi. Coke is primarily targeted at young individuals over the age of twenty-five. 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. which are aimed towards the young. India was declared the fastest growing market within the Coca-Cola system. and Fanta in Tamil Nadu. by featuring well known personalities popular to this age group.
However. For example. Coca Cola India has faced its fair share of problems. Due to India’s suspicion of foreign business entering Indian markets. there was still a lot of protectionism. the most controversial. However. On August 5 th Page 54 . more importance was being given to lobbying the politicians. Coca Cola received alien status its re-entry. To make things worse. Technological. Economic. and by far. 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. Due to the lack of consistency in the legal aspects. Social. India’s past promotion of “Indigenous availability” or “Swadeshi movement” depicted its affinity for local products. Legal and Environmental. This and some of the policies imposed on foreign enterprises proved as a hindrance to the growth of the company in the country. Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to Lehar Pepsi). Thus. 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. Recent Scenario During recent times. They re-entered the country in 1993.“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. the policies were neither clear nor unchanging. Despite the liberalization of the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers such as bureaucracy and regulation. 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. the primary barrier for Coca-Cola’s entry into the Indian market was its political environment. foreign businesses were not allowed to market their products under the same name if selling within the Indian market.
there are certain positives as well. with a drop of almost 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory. 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. Kerala.8% same time in the previous year. the communities in and around the Coca Cola plant blamed the factory for their water problems. and college campuses across the country had stopped selling Coca-Cola. Many leading clubs. The Centre for Science and Environment (CSE). the local Panchayat decided not to renew the license issued to Coca Cola to “protect public interest". Economic Analysis: The Indian economy sustained the global economic slowdown in the previous year and has shown a tremendous economic growth. Due to this. There was widespread discontent around many of their plants. It showed 8.6% of growth in the last quarter of 200910 as compared to 5. Economic growth Page 55 . For example. This threatened the newly achieved leadership attained over Pepsi due to a successful marketing campaign. This had an adverse impact on the sales of Coca Cola. in Plachimada. But this was not the end of Coca Cola’s troubles. It has emerged as an attractive economy to invest in as many opportunities has been recognized. 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". near Varanasi.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2003. with a 22 percent increase in its unit case volume last quarter. retailers. According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August. However. restaurants. The company has also been accused of illegally occupying a portion of the village property resources in Mehdiganj.
despite few problems in the start they have emerged as the king of soft drink industry in India. Beverage industry being price competitive market. It has introduced two new products. the beverage king reported a growth of just 5% (worldwide) in the same quarter. Their expenditure has been rising. distribution channels and other operating costs. The inflation rate for the year 2009 was recorded to be 11.49%. they have not revised their product prices. just behind China. Rising prices in the food and other products doesn’t only effect the consumers it also has an adverse effect on a company. Nimbu Fresh and an energy drink ‘Burn’. With economic growth many opportunities have been seen. Analysts have said that India will be the third biggest economy of the world in the coming year behind China and USA. Inflationary effects Inflation is one of the main problems that Indian economy has been facing for a year now. which have attracted many foreign investor to the company. Coca cola India’s growth is in contrast to its overall performance. it has been forced to think about their input costs. as they have been rising due to inflation. with more costs in salaries. especially oil. Coca cola India has also been affected by the same. Exchange rate Page 56 . Coca cola India returned to the country in 1993. Coca cola registered 22% growth in their unit case volume in the second quarter (April-June). The strong economic growth of India has resulted in coca cola to invest heavily in sales and distributive channels. As prices have gone up in India for various products. there has been uncertainty in decision making of almost every company. It is the 16th consecutive quarter of such growth out of which 13 are double digit.“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.
they did not focus on competition from other alternatives such as lemonade. Therefore. Coca Cola today. supply and distribution cycles. Also. the rate of rupee to USD touched 44. The soft drink industry today is growing steadily due to the booming economy. amidst competition from Leher Pepsi which had the advantage of entering the country 7 years earlier. However. Lassi etc. has made significant investments to build its business in India. These products had been around for centuries. Social Analysis: Coca. which the Indian consumers could not identify with. coca cola India had to bear some low profitable times. strengthened Page 57 . on an average it has been around 47. It has also generated employment for almost 1.Cola returned to India in 1993 after a 16 year hiatus. introduction of newer products which appealed to the Indian tastes. The previous year. However. in the present scenario rates have reached a stable level and exports are on an increasing trend. they were able to increase their market share and build brand loyalty. Initially. things were brought under control when Thums Up was bought over by Coca Cola. more investment in market research and focussing on the target group of 18-24 year olds.“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. and were also cheaper alternatives to CocaCola.25. it struggled to find acceptance as there were already other brands such as Parle’s Thums Up which existed in the market.000 people in related industry through its procurement. and more attention was paid by the company on their marketing mix. With the lowering of their prices by almost 15-20%. Exchange rate determines at what price will the company export its products and import whatever is required by it. Coca-Cola had earlier focussed more on the American way of life in their advertising campaigns. so the exports earned less and the imports cost more.
Technological Analysis: Coca-Cola has started operations of its R&D facility in India. with almost 70% of the country’s population. SOS Children’s Villages and Save the Children. Environmental Analysis: Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed in the footsteps. one of them being ‘water conservation’. is an initiative that prioritizes many social and environmental issues. and is exploring options to enter new categories in India such as juices in localised flavours. With the increase in health consciousness among the urban consumers. They support many community based rainwater harvesting projects and help Page 58 . by tying up with many NGOs such as BAIF (or Bharatiya Agro Industries Foundation). which was first launched on the internet. Case in point is the recent 2009 Sprite campaign. which contain lesser calories than ordinary Coca Cola. It has also taken initiatives to promote education in rural areas. 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 has recorded significant growth in recent years Coca Cola India has also taken many initiatives as a responsible corporate citizen. energy drinks. These initiatives are being taken by the company to further expand their product portfolio. Coca-Cola has increased ad spend on the internet. The rural market had also been identified by Coca-Cola India as an attractive target.“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. This is also responsible for the company shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled water. sports drinks and flavoured water. The company’s R&D team has already rolled out drinks such as Maaza aam panna and also a Maaza mango milk drink. with the view of localizing its product portfolio. Coca Cola India’s Corporate Social Responsibility (CSR). The major focus would be on non carbonated drinks and flavours.
In the experiment. Energy conservation programs By following these guidelines Coca-Cola India has helped the environment with consistent profits and success. 2003. On 4th February. The company has made sure that the following ideas are considered during their operations: 1. Environmental due diligence before acquiring land 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” lending conservation education. Eliminating or minimizing solid waste. Centre of Science and Environment in India. Ban on purchasing CFC emitting refrigerating equipment 5. Water efficiency and water quality 2. Thoug h being an environmental friendly company. Energy efficiency 3. They seek to provide leadership in three different areas. released a report based on experiment done by Pollution Monitoring Laboratory. these are as follows: 1. Compliance with all regulatory environmental requirements 7. Environmental impact assessment before commencing project 3. Waste water treatment facilities 6. Page 59 . they tested 17 packaged drinking water brands and found that. Coca Cola’s Kinley has 15 times more pesticide residual levels than the stipulated norms. Coca Cola India had to face its share of controversies. Bisleri had 59 times and Aquaplus had 109 times. Ground water and environment survey before selecting the site 4.
However. But later it was found that BIS had stated that pesticides should not be present or it should not exceed 0.“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 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. which stated that pesticides should not be present in any food item but did not have law against pesticides being present in soft drinks. Further.001 part per million. the health ministry of India admitted that ‘there were lapses in PFA regarding carbonated drinks’. Fig 2.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA Legal Analysis: Page 60 .
regional or any racists’ basis. When producing their beverages. expiry date. these are to meet the norms and laws set by the labour ministry. discrimination laws etc. Being a male dominated society. if a product is defective. the government is also paying special attention to consumer laws. Health and safety laws As coca cola produces a product that is consumed by the consumer as a food item. strategies so as to satisfy their consumers. Coca Cola India has to make sure that they have written price. employment laws. Employment Laws Ministry of Labour makes the laws for proper employment in the country. If it is found that the company has been violating the law. antitrust law.“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. Complaining and getting the verdict the court has made very fast and efficient as government of India has installed new consumers courts. it has to face strict action and fines. there are laws that the company must abide by when producing it. When employing anyone. They have stipulated norms on employing people from the country and getting expatriates in the company as well. Keeping in mind the consumer laws. consumer is the king. manufacturing date. nutritional facts are written on the packed product. a business should plan out everything. and employees. coca cola India cannot discriminate on social. Ministry of Food Processing Page 61 . not meeting the stated standards a consumer can complain against the manufacturer. 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. Every field of work has got its own wage. batch no. the ministry has made sure that female employees are treated with respect and given equal importance at the work place. Their main job is to see that the consumer benefits are being met or not. India has strict laws against employing child labour. Consumer Laws In the present scenario.
This committee looks after all the issues regarding unethical means of doing business. have to make accordingly to the laws. The Solvent Extracted Oil. The export or the import of the products by the company has to meet the quality standards stipulated by the law. 1947. 1998. Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. the act establishes a regulatory body. 1955. The Indian Parliament has recently passed the Food Safety and Standards Act. The Edible Oils Packaging (Regulation) Order. 1954. competition issues and any dispute between two different business entities. The Vegetable Oil Products (Control) Order.“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. Essential Commodities Act. The Milk and Milk Products Order. 1973. It will specifically repeal eight laws: • • • • • • • • The Prevention of Food Adulteration Act. They have to check the weight. 2006 that overrides all other food related laws. 1955 relating to food. The Fruit Products Order. De oiled Meal. the Food Safety and Standards Authority of India. Anti-trust law The Competition Commission of India was made under the Indian Competition Act 2002. From now on. The Meat Food Products Order. 1992. 1967. • Legal Advice and sophisticated insight into the international best practices on Page 62 . Anything that coca cola makes. 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. volume and ingredients of the product. and Edible Flour (Control) Order.
Strategic policing on anti-competition market practices and trends. joint buying. counter-claims. All these laws help Coca Cola India to maintain its own brand and values. pricing and marketing. amalgamation. rejoinders. joint operation and research. Drafting claims. the CCI makes sure that either of them does not indulge in unfair means to make profits and hurt each other’s business. Legal Due Diligence on anti-competition. SWOT ANALYSIS OF COCA-COLA INDIA Fig 2. joint ventures with appropriate antitrust safeguard measures and policy. franchisees etc.supply and distribution. licensing. These laws help every business to compete in a fair environment. unfair and restrictive market practices. The network is formed on the Page 63 . • Consultancy services on specific issues . acquisitions. acquisitions. on Competition Law and related legal issues. ‘promotional materials’. ‘dominant-firm’ status etc. As it is known that the coca cola and Pepsi are the fiercest rivals in the beverage industry. Any other business trying to copy the brand of coca cola will face the strict action against itself. Policy due diligence for mergers. representations etc.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” competition law. mergers. replies.3 SWOT ANALYSIS OF COCA-COLA INDIA STRENGTHES: DISTRIBUTION NETWORK The Company has a strong and reliable distribution network. distributors. agents. • • • • • Competition Audit and Due Diligence for developing appropriate guidelines for employees.
Partners. The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. Limca and Maaza add up to the brand name of Coca-Cola Company as a whole.“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. The distribution fleet includes different modes of distribution. Coca Cola India for the first time has come out with corporate campaign in India targeting its stakeholders. Fanta. Performance. Page 64 . 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. Strong brand names like Coca-Cola. The company has identified the 5 pillars as • • • • • People. It has a distribution network consisting of a number of efficient salesmen. The products produced and marketed by Coca-Cola India have a strong brand image. Portfolio. 700. Planet. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy. Thums up.000 retail outlets and 8000 distributors. 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.
WEAKNESSES: HEALTH CARE ISSUES In India. said aerated waters produced by soft drinks manufacturers in India. contained toxins including lindane.“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. the Centre for Science and Environment (CSE). there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola.governmental organization in New Delhi. SMALL SCALE SECTOR RESERVATIONS The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’. trade discipline and control and proactive tax management through tax incentives. malathion and chlorpyrifos . In 2003. DDT. Coca-Cola India claims a 58 per cent share of the soft drinks market. a non. These measures have reduced the costs of operations and increased profit margins. the Company finds it very difficult to invest in technological advancements and achieve economies of scale. OPPORTUNITIES: LARGE DOMESTIC MARKETS The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. excise duty reduction and creating marketing companies. Coca-Cola went about bringing a cost-focus culture in the company. This included procurement Efficiencies – through focus on key input materials.pesticides that can contribute to cancer and a breakdown of the immune system. Page 65 . including multinational giants PepsiCo and Coca-Cola.
500 new villages. chiefly led by Limca. In Bangalore. People understand trade to a large extent and the demand for foreign goods has increased over the years. EXPORT POTENTIAL The Company can come up with new products which are not manufactured abroad. Coca-Cola Company can take advantage of such a situation and enhance their sales. the per capita income has increased over the years and a majority of the people are educated. 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. 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. Coca-Cola amounts for 74% of the beverage market.000 new outlets in the first two months of this year. Other products account for 16 per cent market share. The company appointed 50. THREATS: IMPORTS As India is developing at a fast pace. Unlike olden times. Page 66 .“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. like Maaza etc and export them to foreign nations. people now have the power of buying goods of their choice without having to worry much about the flow of their income. the export levels have gone high. as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3.
poor roads. the license poses a problem. large number of daily wage earners. this can limit the growth of the Company and pose problems. All these problems might lead to a slowdown in the demand for the company’s products. 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. the production capacity is mentioned on the license and every time the production capacity needs to be increased. 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. Renewing or updating a license every now and then is difficult. power problems. it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. When a license is issued. and inaccessibility to conventional advertising media. seasonal consumption linked to harvests and festivals and special occasions.“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. Page 67 . acute dependence on the vagaries of the monsoon. Therefore.
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.
To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally. SCOPE OF THE STUDY:Page 69 . Another objective of the study was to perform Competitive analysis between Coca- Cola and its competitors. This would help us identify areas of potential growth. The study was aimed to perform Market Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola.Cola Company.“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. To understand the reasons behind the purchase of Coca-Cola products.
It is primarily directed to the general public but was done only in New Delhi. such as the market potential for a product or the demographics and attitudes of consumers who buy the product.“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 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. Descriptive Research. 2. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. Casual Research. Descriptive Research:The objective of descriptive research is to describe things. Casual Research:The objective of casual research is to test hypothesis about casual and effect relationships. 1. Noida and Greater Noida RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the needed information. Page 70 .
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. The various sources of secondary data used for this study are: News papers. PRIMARY DATA:- Page 71 . Text books. SECONDARY DATA:It is defined as the data collected earlier for a purpose other than one currently being pursued. Marketing reports of the company. Secondary data in this study has provided an insight and forms an outline for the core objectives established.“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. SOURCES OF DATA The data has been collected from both primary as well as secondary sources. Internet. Magazines. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products.
Column 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. Especially it addresses three questions: Whom to survey (sample Unit). Personal Interview. Pie-charts. Making the census study of the entire universe will be Page 72 . Tables. Bar-charts. The various research measuring tools used are: Questionnaire.“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. SAMPLING DESIGN An integral component of a research design is the sampling plan. Personal interview. The methods that have been used to collect the primary data are: Questionnaire. Percentages. how many to survey (Sample Size) and how to select them (sampling Procedure).
Sampling Tools Questionnaire Personal Interview Respondents Customers Customers Total Table – 1. SAMPLING TOOL:Questionnaire was used as a main tool for the collection of data. ii. Questions were read out to the respondents and the answers were noted. mainly because it gives the chance for timely feedback from respondents.“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. Through questionnaire – 150 respondents. Hence sampling becomes inevitable.7 150 27 177 Number FIELD WORK:The study was conducted in New Delhi. Respondents seeking any clarification can easily be sorted out through tool. sampling produces representative data of the entire population. Page 73 . The questionnaires were given to the respondents to fill in order to get their feedback. Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Properly done. Through personal interview – 27 respondents. Noida and Greater Noida. A sample is only his portion of population. SAMPLE SIZE:i.
“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. The project duration is limited to 4 weeks so it limits the area of study. The study was confined to New Delhi. the sample selected may not be true representative of the population. But there are certain factors which affects this study they are as follow: Since the sampling procedure was judgmental. Page 74 . Economic and market conditions are very unpredictable (Present and future). 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” 5. DATA ANALYSIS Page 75 .
About 35% respondents consume soft drinks twice or thrice a week and only 18% consumes soft drinks every day. Page 76 .5 AGE GROUP & GENDER: From Fig 2.4. we interpret that about 48% of the total respondents consume soft drinks rarely or once a week. About 6% belong to age group below 20 and 3% belong to age group of 30-40.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. we can comprehend that 90% of total respondents belong to the age group of 20-30.6 Fig 2. we come to know that the gender ratio of the total respondents is almost 2:1 (male: female).Form Fig 2. Fig 2.6.4 Fig 2.7 SOFT DRINK CONSUMPTION & EXPENDITURE: From Fig 2.5. This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group.
About 23% purchase for the purpose of parties. which is very low as compared to the global scenario. 58%. we can find retail shops in every corner. Page 77 . This creates a potential growth market for Coca-Cola India. This is probably because not all communities in India have supermarkets and other purchasing channels present nearby. 23% prefer to purchase from Pubs. About 12% spends from 100-150 a week & 7% spend above 150.9 REASON FOR CONSUMPTION: From this graph. 50-100 a week on Coca-Cola products. we infer that there is no specific occasion why people purchase Coca-Cola products. Although some of the advertising campaigns target special occasion or festivals.19% prefer to purchase from Supermarkets and Vendor machines.8 PURCHASING PORTAL PREFERENCE: From the above data.7. Restaurants and Multiplexes. 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 2.9 it is concluded that 59% respondents purchase Coca-Cola without any specific reason.e. Fig 2. whereas. we interpret that about 81% of the respondents spend only Rs. we have ascertained that preferred portal for purchase of Coca-Cola products is the retail shops i. 15% purchase while watching movies in the cinemas and only about 4% purchase during festivals and for picnic purposes. From Fig 2.
11. Fig 2. This clearly states why Coca-Cola is market leader with almost 60% of market share. From Fig 2. prefer consuming Coca-Cola product over Pepsi and other drinks. 20% alcoholic drinks and only 14% want another fizzy drink.11 Fig 2.12.12 OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS EXPECTED BY CONSUMERS: From Fig 2. 23% prefer Pepsi Products and only 75 prefer other drinks.13 QUANTITY PREFERENCE: Page 78 . 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. we conclude that about 40% would like to see a new fruit drink being added to the product basket. Fig 2. 26% want energy drinks.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.10 SOFT DRINK PREFERENCE: From the above graph we interpret that about 70% of the respondents. 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.
16 Fig 2.14 Fig 2. 19% prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola. we infer that about 47% of respondents prefer to purchase PET bottle of Coca-Cola Products. Fig 2. About 62% respondents said that they find Coca-cola products better than Pepsi and only 38% supported Pepsi products. About 27% prefer to purchase glass bottles.17 Page 79 . we infer that about 62% of the respondent considers the pricing of Coca-Cola much more reliable than that of Pepsi.15 BRANDING & PRICING: From Fig 2.15.13.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” From Fig 2.14. Fig 2. it is concluded that respondents find Coca-Cola products better than that of Pepsi products. From Fig 2. About 38% respondents think that Pepsi have better pricing than that of Coca-Cola.
16 & 2.18 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 2.49% consider that availability of Pepsi products is more in the market. About 51% respondents think that Coca-Cola products are much easily available in the market. 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. it’s clear that there is slight difference between the availability of products of Coca-Cola and Pepsi. it’s clear that Coca-Cola products have better taste and quality than that of Pepsi.19 AVAILABILITY & SATISFACTION: From Fig 2. Page 80 . Fig 184.108.40.206. 27% respondents consider Pepsi products have better taste and quality. About 73% respondents consider that Coca-Cola products have very good quality and taste.
“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 .
.............................“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 ........................................ ................................. Thank you! Page 87 ..........
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