Senior Project Coke | Coca Cola | Pepsi

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference

to Coca-Cola India”

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)

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“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

CONTENTS
EXECUTIVE SUMMARY - PAGE 2 CHAPTER 1 - PAGE 4-6 CHAPTER 2 - PAGE 7-11 CHAPTER 3 - PAGE 12-63
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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

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”
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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

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

EXECUTIVE SUMMARY
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

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INTRODUCTION Page 5 . 1.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” objectives this study is also conducted to understand the Customer preferences towards various Coca-Cola products.

“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 counsel before every action Research is a human activity based on intellectual investigation and is aimed at discovering. MARKETING RESEARCH:Marketing research is the function that links the consumer. customer and public to the marketer through information used to identify and define marketing Page 6 . and revising human knowledge on different aspects of the world. interpreting.

-Palmer (2000) INTRODUCTION TO COCA-COLA Coca-Cola.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” opportunities and problems. generate. designs the methods for collecting information. and evaluate marketing actions. Georgia. on May 8. In addition to this. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates. tea and coffee. refine. distributors. it also produces and markets sports drinks. marketer and distributor of non-alcoholic beverage concentrates and syrups. 1886. It sells beverage concentrates and syrups to bottling and canning operators. analyzes and communicates the findings and their implications.Cola Company began building its global network in the 1920s. the Page 7 . The Coca. Now operating in more than 200 countries and producing nearly 400 brands. -American Marketing Association Marketing research is about researching the whole company’s marketing process. fountain retailers and fountain wholesalers. Coca-Cola Company is the world’s leading manufacturer. monitor marketing performance. the product that has given the world its best-known taste was born in Atlanta. syrups and notready-to-drink powder products. and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues. used to produce nearly 400 beverage brands. manages and implements the data collection process.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money. from Montreal to Moscow. CocaCola. more than any other consumer product. 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. The Company aims at increasing shareowner value over time. Page 8 . From Boston to Beijing. 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. More than anything.a billion times a day. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks. thus increasing brand equity on a global basis.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. to meet business goals and objectives. has brought pleasure to thirsty consumers around the globe. For more than 115 years. Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2. INDUSTRY PROFILE Page 9 .

Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. As a result. most of the companies were forced to revamp their product. With the liberalization and growth of the Indian economy.“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 . By the turn of the 20th century. distribution and customer service strategies to strengthen their position in the market. the face of the Indian FMCG industry had changed significantly. also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. 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. the Indian customer witnessed an increasing exposure to new domestic and foreign products through different Page 10 . marketing.THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG).

Increased availability of retail space. creating new product. the FMCG sector will Page 11 . 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. Though the absolute profit made on FMCG products is relatively small. making up 32% of the sector. and airlines. The main contributor. because they generally satisfy rather fundamental. rapid urbanization. FMCG share float in a steady manner irrespective of global market dip. such as television and the Internet. 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. distribution and service formats. leading to the rapid growth in the FMCG industry. as opposed to luxurious needs. and qualified manpower also boosted the growth of the organized retailing sector. which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs. 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. Apart from this. FMCG does not suffer from mass layoffs every time the economy starts to dip. Unlike some industries. they generally sell in large numbers and so the cumulative profit on such products can be large.93000 cr. computers. Unlike other economy sectors. The FMCG sector. market. It is predicted that in the year 2010. A person may put off buying a car but he will not put off having his dinner. These changes had a positive impact. direct distribution. HLL led the way in revolutionizing the product. is the South Indian region. distribution and service formats of the FMCG industry by focusing on rural markets.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” media. such as automobiles.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” be worth Rs.0 BEVERAGES IN INDIA The beverage industry is vast and there various ways of segmenting it. beverages form an important part of the lives of people. Fig 2. so as to cater the right product to the right person. It is an industry. for adults and for senior citizens. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.e.e. non-alcoholic and sports beverages. Monthly Circular) A BRIEF INSIGHT .  Age wise segmentation i. (Source: HCCBPL. Page 12 .  Segmentation based on the amount of consumption i.BEVERAGE INDUSTRY IN INDIA In India. beverages for kids. high levels of consumption and low levels of consumption.  Natural and Synthetic beverages. in order to come up with better products to gain more consumers and satisfy the existing consumers.  In-home consumption and out of home on premises consumption. The different ways of segmenting it are as follows:  Alcoholic. in which the players constantly innovate.143000 cr.

 The beverage market has still to achieve greater penetration and also a wider spread of distribution.  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. Page 13 .  Consumer education is a must to bring out benefits of beverage consumption whether in terms of health. as a big opportunity. well-being or prestige relevant to the category. stimulation. It is important to look at the entire beverage market. taste. In order to leverage the beverage industry. refreshment. These two perceptions are the biggest challenges faced by the beverage industry. relaxation.“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. 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. for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. it could be observed that consumers perceive beverages in two different ways i. purchase and consume.  Communication should be relevant and trendy so that consumers are able to find an appeal to go out. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. beverages are a luxury and that beverages have to be consumed occasionally.e.

COMPANY PROFILE Page 14 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 3.

 To inspire moments of optimism and happiness.  To create value and make a difference. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.....  To refresh the world.“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. which is enduring. VISION: Our vision serves as the framework for our Roadmap and guides every aspect of our business Page 15 .

 Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Page 16 .  Get out into the market and listen.  Passion: Committed in heart and mind. observe and learn. lean and fast-moving organization. customers and franchise partners. WINNING CULTURE: Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality. FOCUS ON THE MARKET:  Focus on needs of our consumers.  Accountability: If it is to be.  Productivity: Be a highly effective. quality growth.  Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.  Collaboration: Leverage collective genius. enduring value.“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.  Possess a world view.  Integrity: Be real. we do well.  Diversity: As inclusive as our brands.  People: Be a great place to work where people are inspired to be the best they can be.  Quality: What we do. it's up to me.  Partners: Nurture a winning network of customers and suppliers.  Leadership: The courage to shape a better future.  Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. LIVE OUR VALUES : Our values serve as a compass for our actions and describe how we behave in the world. together we create mutual.

He may have been inspired by the formidable success of Vin Mariani. on May 8. which were popular in the United States at the time due to the belief that carbonated water was good for the Page 17 . Georgia by John Pemberton. a European cocawine. HISTORY OF COCA-COLA The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company.  Reward our people for taking risks and finding better ways to solve problems.  Remain responsive to change.  Steward system assets and focus on building value.  Be insatiably curious. WORK SMART:  Act with urgency. Georgia. The first sales were at Jacob's Pharmacy in Atlanta. It was initially sold as a patent medicine for five cents a glass at soda fountains. essentially a non-alcoholic version of French Wine Coca. originally as a coca wine called Pemberton's French Wine Coca. BE THE BRAND: Inspire creativity.  Learn from our outcomes -. optimism and fun.  Have the courage to change course when needed. 1886. when Atlanta and Fulton County passed prohibition legislation. Pemberton responded by developing Coca-Cola. In 1886. passion. a drugstore in Columbus.“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. ACT LIKE OWNERS:  Be accountable for our actions and inactions.  Work efficiently.  Remain constructively discontent.what worked and what didn’t.

the drink had reached the status of a national icon in the USA. The first outdoor wall advertisement was painted in the same year as well in Cartersville. but the other two manufacturers could continue to use the formula. while suffering from an ongoing addiction to morphine. Georgia. After both failed to catch on. headache.O. dyspepsia. Bloodworth.[9] Pemberton claimed Coca-Cola cured many diseases. John Pemberton declared that the name "Coca-Cola" belonged to Charley. A. In 1935. In 1892 Candler incorporated a second company.C. in the summer of 1888. at the Biedenharn Candy Company in 1891. in 1914.H. However.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” health. after the company made minor changes in the sourcing of some ingredients. Meanwhile. So. Candler purchased exclusive rights to the formula from John Pemberton. including morphine addiction. further obscuring its legal origins. Mississippi. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The first bottling of Coca-Cola occurred in Vicksburg. Coca-Cola was sold in bottles for the first time on March 12. Pemberton sold the rights a second time to four more businessmen: J. The Page 18 . Murphey. and impotence. in order to force his two competitors out of the business. Margaret Dozier and Woolfolk Walker. C. Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. 1894. Biedenharn. three versions of Coca-Cola — sold by three separate businesses — were on the market. Dozier came forward to claim her signature on the bill of sale had been forged. The same year. and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. Mullahy and E. neurasthenia.O. By the time of its 50th anniversary. Cans of Coke first appeared in 1955. it was certified kosher by Rabbi Tobias Geffen. The Coca-Cola Company (the current corporation). Candler set out to establish a legal claim to Coca-Cola in late 1888. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. Its proprietor was Joseph A. By 1888. and in 1910 Candler had the earliest records of the company burned. Mayfield. Candler sold his beverage under the names Yum Yum and Koke.

Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6. it announced another diet product. attempted to change the formula of the drink with "New Coke". 2005. was and is sold separately at pharmacies in small quantities. 1985. proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. On March 21. but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. as an over-the-counter remedy for nausea or mildly upset stomach. On February 7. Legal matters were not helped by the decision of the bottlers to subcontract to other companies. the name "Coca-Cola Classic" was changed back to "Coca-Cola. Candler never collected his dollar. and zinc. Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi. Tennessee. magnesium.“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. 2005. Asa Candler was tentative about bottling the drink. Coca-Cola Zero. 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." Page 19 . sweetened partly with a blend of aspartame and acesulfame potassium. Coke concentrate. amid much publicity. 2005. but Coca-Cola management was unprepared for the public's nostalgia for the old drink. In 2007. very different from the much later hobble-skirt design that is now so familiar. Thomas and Joseph B. The company gave in to protests and returned to a variation of the old formula. niacin. The loosely termed contract proved to be problematic for the company for decades to come. in Canada. the same sweetener currently used in Pepsi One. On April 23. In April 2007. On July 5. effectively becoming parent bottlers. marketed as "Diet Coke Plus”. Benjamin F. 1985. it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. B12. under the name Coca-Cola Classic on July 10. Whitehead. or Coke syrup. but two entrepreneurs from Chattanooga. leading to a backlash. Coca-Cola.

the soft drink market has changed dramatically with consumers buying fewer soft drinks and more non-carbonated beverages. Dollar (USD).S. which are particularly adverse with a stronger U. due to a dispute over wholesale prices of Coca-Cola products. Though the non-CSD market is growing quickly. Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. coupled with the unparalleled brand equity of the Coca-Cola trademark. and the plastic used in bottles. slowing consumer spending in Coke's large North American market compounds the challenge of increasing costs and a weak economic environment.“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.8 billion net income. GLOBAL MARKET SHARE OF COCA-COLA In 2009. Strong international growth has also more than offset a weak domestic market.3 million. non-CSD product launches and acquisitions such as that of Glaceau in 2007. The size and variety of KO’s offerings in the CSD category. the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. exposing it to currency fluctuations. has allowed KO to maintain its share of this important market. KO has also responded to consumers’ changing tastes with new. which constitutes 78% of KO’s sales. eliminating the need to differentiate between the two. the aluminium used in cans. The change is part of a larger strategy to rejuvenate the product's image. Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE) for $12. KO’s profits are also vulnerable to the volatile costs for the raw materials used to make drinks . On February 25. the company generated revenues of $31 billion with $6. The formula remained unchanged. Page 20 . Under the new deal. such as Powerade and Dasani water. Despite these challenges.such as the corn syrup used as a sweetener. Coca-Cola has remained profitable. Finally.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago. Coca-Cola earns approximately 75% of revenue from international sales. Furthermore. An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD). In January 2009. Costco stopped restocking its shelves with Coke and Diet Coke. In November 2009.

OAO Nidan Juices.2 billion dollars. the British fruit smoothie maker. the global economy has fallen into a recession. Still. In return.4 billion. such as that of Chinese juice maker Huiyuan for $2. and estimates of Nidan's purchase price are between $560-$620 million.5% market share. However the company was unsuccessful with its purchase of Huiyuan as it broke Page 21 . In June 2010. 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). the company has positioned itself well in international markets both organically and through acquisitions. Coca-Cola Enterprises will take over Coke's bottling operations in Norway and Sweden. Coca-Cola Company entered into discussions to buy the Russian juice company. and recent purchases of additional shares increased Coke's stake to 58%. which derives approximately 75% of its sales from outside North America. If successful. Coca-Cola Company purchased a majority share of Innocent. passing Pepsi's 30% market share. This may be a problem for Coke. The company is 75% owned by a private equity firm in London and 25% by its Russian founders and controls 14. The deal covers the next 20 years with an option to renew for an additional 20 years. In April 2010. Not just the United States but countries from all over the world have felt the impacts of the 2008 Financial Crisis. In March 2010. TRENDS AND FORCES  The Global Economic Recession Threatens Overall Demand: In 2008 and 2009. Last year the company bought an 18% share of the company for more than $45 million.5% of the Russian juice market. giving the company control over 90% of the total North America volume. becoming a European-focused producer and distributor. the purchase would add to Coca-Cola's 20.“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 Russian juice market is estimated to be $3.

KO is faced with the task of balancing the risk of new innovations with the low growth rates of established brands. This is true across most of KO's markets. it has recently begun to increase its development of both diet CSD and non-CSD beverages.  New Aversion to Soda Threatens Main Business: 74% of the Coca Cola Company's products are classified as carbonated soft drinks. Within the CSD segment consumers have been moving away from sugared drinks. Since consolidating all company-owned bottlers into the Bottling Investments division. On March 5. This strategy represents a Page 22 . opting instead for diet beverages. Coke's CEO said that emerging markets are bouncing back quicker than more developed markets. Consumer demand for CSD has been negatively affected by concerns about health and wellness.  Integrated Bottler Strategy Increases Flexibility: After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging beverage maker. juices. 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. This proposal would affect all non-diet. one of the first areas that he targeted for improvement was KO's frayed relations with its extensive network of bottlers. a predicament for manufactures throughout the beverage industry. Isdell has continued to increase KO's interest in its bottlers through stake purchases or outright buyouts. such as tea. full calorie drinks produced by KO.“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. and water. 2010. 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. These factors have driven a shift in consumption away from CSD to healthier alternatives. making it particularly sensitive to changes in demand for CSD. which do not generally contain any sugar or calories. Though KO has been somewhat slow to respond to this shift in consumer preferences. In 2006. many state public school systems banned the sale of soft drinks on their campuses.

S. down to 8. Dasani bottled water's revenues fell by double digits. this decrease is emblematic of the bottled water industry as a whole. Although this is a seemingly small decrease. KO has signed new agreements with many of its bottlers which allow them to distribute drinks produced by other companies. Dollar (USD). at least one town in Washington state and one in Australia have outlawed the selling of bottled water within their city limits. an American iced-tea company. In 2008.“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.  Dollar Affects International Performance: Another trend affecting Coca-Cola is the relative strength of the U. In August 2009. In KO's 2007 Q3 Analyst call. Coca-Cola Enterprises (CCE) now distributes Arizona.8 billion gallons. industry experts don't expect bottled water to bounce back anytime soon. bottled water was the third most popular beverage (behind soda and milk). Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI) for double-digit volume growth in that country. Americans consumption declined for the first time. KO derives about 75% of its operating income from outside Page 23 . Although the company is based in the US. Follow ing this trend. the Wall Street Journal reported that sales of bottled water had fallen for the first time in five years.  Bottled Water Falling Out of Favour: In Q3 2009. Isdell sees these agreements as another way of taking advantage of the rapidly growing non-CSD market. a ready-to-drink tea made by Ferolito. Vultaggio & Sons. but compared to 2007. For example. 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. Additionally.7 billion gallons from 8. Isdell believes that by combining production and distribution operations the company will have enhanced its ability to quickly respond to changing market conditions.

lowering earnings. though in a more indirect way. the prices of these commodities rose drastically with general commodities bubble and dramatically pressured margins. it also limits larger gains from drastic downswings in the dollar's value. KO itself is responsible for purchasing the raw materials used to make its concentrates and syrups. Thus. Because of this. 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. given the competitive nature of the non-alcoholic beverage industry. Aluminium. corn. KO has broad exposure to foreign currencies and actively hedges a large portion of these to avoid wide swings in earnings from currency fluctuations. but the possibility of another Page 24 . In 2007. They receded in 2008. If the raw materials necessary for bottling become more expensive. and provide a possible incentive for consumers to switch to other companies’ beverages. Although this hedging insulates from the potential downside of a strengthening dollar. As foreign currencies weaken relative to the dollar. Changes in the production costs of bottlers can also impact KO’s profitability. it has a negative effect on KO's earnings.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” United States. and PET resin are three examples of such production goods used by bottlers that could have significant bearing on the Coca-Cola Company’s profit margins. if the dollar strengthens (as it did in the second half of 2008 and 2009). goods sold in foreign markets are suddenly worth fewer dollars back in the US. S uch a price increase would likely hurt KO. the bottler may be forced to drastically raise prices to compensate.  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 company is very sensitive to the strength of the dollar.

and Cadbury Schweppes are among the largest competitors in this Page 25 . Pepsi Co. POTER’S FIVE FORCES  RIVALRY AMONG EXISTING FIRMS: The greatest competition that Coca-cola faces is from the rival sellers within the industry. Coca-Cola.“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.

Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola. Every year 800. "The Coca-Cola Company" is the largest soft drink company in the world. Aside from these major players.8%. Diet Coke.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” industry. PepsiCo's U. and Sprite). Fanta. it had lower sales in 2005 than did PepsiCo (Murray. and they are all globally established which creates a great amount of competition. According to Beverage Digest's 2008 report on carbonated soft drinks. Bottling plants Page 26 . Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of 21%.000. smaller companies such as Cott Corporation and National Beverage Company make up the remaining market share. 2006c).S. However. while the Coca-Cola Company's has decreased to 42.000 servings of just "Coca-Cola" are sold in the United States alone. CocaCola has higher sales in the global market than PepsiCo.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. 2006c). All five of these companies make a portion of their profits outside of the United States. market share has increased to 30. PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray.

By most accounts. However. The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). Coca-Cola manufactures.5%. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. In 1972.“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. Saudi Arabia and Pakistan. PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. In 1988. It supplies concentrates and beverage bases used to make the products and provides management assistance to help it's bottler's ensure the profitable growth of their business. Coca-Cola India's market share was 52. The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. Overall. Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. In 2005. The Coca-Cola Company returned in pursuance of India's Liberalization policy. This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the Page 27 . PepsiCo bought out its partners and ended the joint venture in 1994. including fountain syrups. distributes and markets non-alcoholic beverage concentrates and syrups. This has put Pepsi at a significant disadvantage compared to US market. in which Pepsi Co was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. Coca-Cola continues to outsell Pepsi in almost all areas of the world. In 1993. Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered. exceptions include India. In Russia. Pepsi Co Company struck a barter agreement with the government of the Soviet Union.

After researching and testing the program for over two years to ensure that it resonated with consumers.S. with the growth in emerging markets significantly expected to exceed the developed markets. held at Coke's hometown where Coke was the lead sponsor for the Games. Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other. The Brand Keys Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries. Pepsi started hiring more popular spokespersons to promote their products. The new competition between rival sellers is to create new varieties of soft drinks. Pepsi is however trying to counter this by competing more aggressively in the emerging economies where the dominance of Coke is not as pronounced. supporting Pepsi's positioning as "The Choice of a New Generation. choosing Pepsi over Coke. Pepsi Stuff. In the late 1990s. Pepsi launched its most successful long-term strategy of the Cola Wars. Due to its success. Pepsi outperformed Coke during the summer of the Atlanta Olympics. Brand name loyalty is another competitive pressure. rivalry in international market is going to be more pronounced. Get Stuff" and collect Pepsi Points on billions of packages and cups. Pepsi launched Pepsi Stuff. Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands. Consumers were invited to "Drink Pepsi. in order to increase sales and getting new customers.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” U. Pepsi. the program was expanded to include Mountain Dew into Pepsi's international markets worldwide. They could redeem the points for free Pepsi lifestyle merchandise. Page 28 . Pepsi advertisements often focused on celebrities.S." In 1975. The company continued to run the program for many years. as one of the first American products in the Soviet Union. such as vanilla and cherry. which was an instant success. became a symbol of that relationship and the Soviet policy. Tens of millions consumers participated. continually innovating with new features each year.R.

Both Coca-Cola and coke previously had a partnership with the iTunes Store. when they both were not able to explain a drop in their June 1992 sales. promoting. trucks. This issue was beginning to grab the attention of both Coke and Pepsi in the summer of 1992. with Pepsi Stuff ending its services and Coke Rewards still offering prizes on their website. and establishing a new soft drink traditionally have been viewed as extremely high. Yet. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels.“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. Another barrier to entry is the high fixed costs for warehouses. Capital requirements for producing. In addition. such as mp3 downloads. 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. Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points". According to industry experts. and labour. This cola war has now concluded. 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. the soft-drink industry is fully saturated and growth is small. then submitting codes online for a certain number of points. New entrants cannot compete in price without economies of scale. while this view may reflect conventional wisdom. some industry observers question whether a new time is coming. This makes it very difficult for new. and economies of scale. unknown entrants to start competing against the existing firms. with 'new age' beverages selling to well-informed and health-informed and health-conscious consumers. Page 29 . Both were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops.  POTENTIAL ENTRANTS: New entrants are not a strong competitive pressure for the soft drink industry. However.

Datamonitor (2005) stated. despite solid growth in consumption. But as the pop fight has topped out.” Substitute products are those competitors that are not in the soft drink industry. 2005). Barista and CCD stores that offer many different flavours to appeal to all consumer markets. juices etc. coffee. “Looking ahead. Overall total liquid consumption in the United States in 1991 included CocaCola's 10% share of all liquid consumption. the industry's giants have begun relying on new product flavours and looking to noncarbonated beverages for growth. The growth rate has been recently criticized due to the market saturation of soft drinks. coffee and tea are competitive substitutes because they provide caffeine. sports drinks. In addition. 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. It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor. Such substitutes for Coca-Cola products are bottled water. and tea.“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. the global Page 30 . but also appear healthier than soft drinks. Citrus beverages and fruit juices are the more popular substitutes. Availability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. Blended coffees are also becoming popular with the increasing number of Starbucks. “For years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi. There are progressively more varieties in the water and sports drinks that appeal to different consumer's tastes. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer.

especially in the case of Coke. but market saturation has caused analysts to suspect a slight deceleration of growth in the industry (2005). Coke and Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned. Until 1980. plus a few large franchisees that owned many locations. Profitability in the soft drink industry will remain rather solid. bottled water. these bottlers are in effect the 'conduit' through which these international cola brands get to local consumers Through the early 1980's. Coke and Pepsi were somewhat restricted in owning bottling facilities. cocacola has diversified from just carbonated drink industry to other substitute and so have other brands like Pepsi. reflecting stagnation of market prices.8% and bottled water is 9. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines. and sports drinks industries. So in order to compete with the substitutes industry. which was viewed as a restraint of free trade. plus upholding the territorial integrity of soft-drink franchises. Jimmy Carter. In order for soft drink companies to continue to grow and increase profits they will need to diversify their product offerings. 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. Dr pepper/Snapple.” The change attributed to the other growing sectors of the non-alcoholic industry including tea & coffee is 11.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” soft drinks market is expected to slightly decelerate. Coke's domestic bottlers were typically independent family businesses deriving from franchises issued early in the century. However. shortly before he left office. Because of this.to bottle the companies' products and to whom each company sells its patented syrups or concentrates. confections.3%. soft drink leaders are establishing themselves in alternative markets such as the snack. a Coke fan. Pepsi had a collection of similar franchises. Page 31 .

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Also. Coke managers have long held 'power' over sugar suppliers.S. Other retailers represent the remaining percentage. fountain sales. supermarkets accounted for about 40% of total U. Technological. Until January 1993. Legal and Environmental. 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. Coca-Cola uses its own network of wholesalers for their fountain syrup distribution.COLA PESTLE stands for Political. a subsidiary of the Monsanto Company.  BARGANING POWER SUPPLIERS: The principal raw material used by the soft-drink industry in the United States is high fructose corn syrup.in the United States due to its patent. Economic. and Pepsi distributes its fountain syrup through its bottlers. and vending. fountain sales represented about 25%. 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 . 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. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling companies. In 1987. a sweetening agent used in low-calorie soft-drink products. a form of sugar. Social. Another raw material increasingly used by the soft-drink industry is aspartame. PESTEL ANALYSIS OF COCA. It likewise is available from numerous sources. aspartame was available from just one source -the NutraSweet Company. which is available from numerous domestic sources. the three most important channels for soft drinks are supermarkets. and vending accounted for approximately 13%. which expired at the end of 1992. soft drink industry sales. Coca-Cola beverage.

It creates an inability for the company to Page 33 . 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. Its headquarters is in USA and it has started opening offices in foreign countries as well. 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. Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and Drug Administration). amount of permitted goods by the government and the service provided by the government. laws imposed on the recruiting labours.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” fast growing economy. The company also has to take into consideration of the regulation imposed by FDA on plastic bottled products. 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. it is an agency in the United States Department of Health and Human Services. Apart from FDA the other political factors includes tax policies and accounting standards. The company also is subjected to income tax policies according to the jurisdiction of various countries. 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. trade restrictions. Political Analysis: Political factors are how far a government intervenes in the operations of the company. In addition to this. The job of the FDA is to check and certify whether the ingredients used in the manufacturing of Coca-Cola products in the particular country is meeting to the standards or not. Globally. Moreover. environmental policy. The political factors may include tax policy.

Page 34 . the purchasing power among people increases. The net operating profits for the company outside US stands at around 72%. it may deter the company in further investment as the cost for borrowing is higher. wage rates and unemployment in the country. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. inflation rates. When there is an increase in the interest rates. Along with this the company uses 63 various types of currencies other than US Dollar. A strong and weak currency tends to affect the exporting of the products globally. 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. interest rates. Coca-Cola. Inflation and wage rate go hand in hand. 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 is a threat in the external environment faced by the company. It gives the company or the marketer a good chance to market the product. Economic Factors: The economic factors analyze the potential areas where the firm can grow and expand. It includes the economic growth of the country. in the past identified this correctly and rightly started its distribution across various 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. Hence there is a definite impact in the revenues due to the fluctuating foreign currency exchange rates.“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. The company first analyzes the economic condition of the country before venturing into that country. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. exchange rates. When there is an economic growth in the country.

The company adapts various management strategies to adapt to these social trends. they are concerned with the longevity of their lives. Each and every country has a unique culture and attitude among the people. It is very important to know about the culture before marketing in a particular country. Page 35 . The age distribution of the country becomes important for the success of the product in a country. The company cannot change the social factors but the company has to adjust itself to the changing society. mainly obesity which is the second social factor in the soft drinks industry.“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. Coca-Cola which is a B2C company. 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. health consciousness among people. so social changes are the most important factors to consider. It is very important because non-alcoholic markets have most of its share from the children and youngsters. population growth with age distribution. Since many are aware. Population growth rate and the age distribution is another social factor to be considered. Consumers and government are becoming increasingly aware of the public health consequences. Adults used to celebrate mostly with alcohol. Coca-Cola has about 3300+ products in their stable. It introduces minimum number of products according to the culture of the country and the attitude of the people. when entering into a country it does not introduce all the products. In one of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly concerned with nutrition”. 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. is directly related to the customer. emphasis on safety. It inspired the company to venture into the areas of Diet coke and zero calorie soft drinks.

In products it led to the development of new products like Cherry Coke. marketing and advertising then the bottling industry while increase their short term profits. Page 36 . Drug and Cosmetic Act. stylish and popular among the youngsters. labour practices. Technological contributions are most important in packaging. antitrust law. In the US the products of the company is subjected to various acts like Federal Food. introduction of cans which are trendy. The company rely on their bottling partners for a significant portion of their business. although the creation of a new product with the perfect blend and taste is a science (an art in itself). Hence it is necessary for the company to maintain a cordial relation with their bottling partners.“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. customer law. environment protection. the Federal Trade Commission Act. employment law and health and safety law. introduction of recyclable and non refillable bottles. advertising and labelling. The advancement in technology in the company has led to: Introduction of new ways for the availability of Coca-Cola. Occupation Safety and Health Act. The manufacturing and distribution of the products is relatively a Low-Tech business. 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. Diet Coke etc. the laws include competition. If the company do not give ample support in pricing. may become detrimental to the company. In Coca-Cola the business is subjected to various laws and regulation in the numerous countries in which they do the business. it introduced general vending machines all over the world. container deposits. Legal Factors The legal factors include discrimination law. The technical advancement in the bottling industries include. product safety.

SWOT ANALYSIS OF COCA-COLA Fig 2. Changes in these laws could result in increased costs and capital expenditures. sale and advertising of all the products are subjected to various laws and regulations. Coca- Page 37 . Various jurisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health consequences. It must adhere to the norms and market the product accordingly. distribution.1 SWOT ANALYSIS OF COCA-COLA STRENGTHES:  WORLD’S LEADING BRAND Coca-Cola has strong brand recognition across the globe.000 million in 2006. packaging and distributing in various countries. the production. 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. Environment Factors These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. Also the company must follow the environmental issues related to the product manufacturing. Business-Week and Inter-brand. which affects the company profitability and also the production and distribution of the products.“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. Usage of renewable plastic in the PET bottles is followed by the company strictly. The company has a leading brand value and a strong brand portfolio. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006.The Business Week-Inter-brand valued Coca-Cola at $67. recognize.

CocaCola owns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world.  ROBUST REVENUE GROWTH IN 3 SEGMENTS Page 38 . Consequently. The company owns four of the top five soft drink brands in the world: Coca-Cola. Over the years. beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1. Diet Coke.  LARGE SCALE OF OPERATIONS With revenues in excess of $24 billion Coca-Cola has a large scale of operation. The company currently sells its products in more than 200 countries. Coca-cola is one of the best recognized global brands. the company has made large investments in brand promotions. Coca-Cola is the largest manufacturer. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. The company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones. In addition.4 billion. Of the approximately 52 billion beverage servings of all types consumed worldwide every day. distributor and marketer of non-alcoholic beverage concentrates and syrups in the world. Coca-Cola owns a large portfolio of product brands. it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. Cherry Coke and Coke with Lemon.“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. The company’s operations are supported by a strong infrastructure across the world. Sprite and Fanta. The company’s large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity. Strong brands allow the company to introduce brand extensions such as Vanilla Coke.690 million Furthermore. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates.

On 10 December 2008. the US Food and Drug Administration (FDA) wrote to Mr. South Asia” and “Pacific Rim” bottling investments. revenues from ‘East.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. Drug. accounted for 34.9%. foreign policy. and Pacific Rim’ and Bottling investments. the US consumer group the Centre for Science in the Public Interest filed a class-action lawsuit against Coca-Cola. South Asia. Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006. 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. In January 2009. over 2005.4% during fiscal 2006. the three segments of “Latin America”. along Page 39 . ‘East.8% of total revenues during fiscal 2006. South Asia. Revenues from Latin America grew by 20. 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. “East.S. These three segments are Latin America. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue. The company received negative publicity in India during September 2006.“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. Muhtar Kent. and Pacific Rim’ grew by 10. During the same period. The lawsuit was in regards to claims made. Together. in three operating segments.6% while revenues from the bottling investments segment by 19. President and Chief Executive Officer. and Cosmetic Act.

423 million in 2005. 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. I n North America the sale of unit cases did not record any growth. 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. OPPORTUNITIES: Page 40 . of Vitamin Water. Therefore. increases the company’s exposure to debt markets and fluctuating interest rates. North America is CocaCola’s core market generating about 30% of total revenues during fiscal 2006.957 million in 2006.  SLUGGISH PERFORMANCE IN NORTH AMERICA Coca-Cola’s performance in North America was far from robust. 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. which. in turn.“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. The decrease was also the result of certain marketing accruals recorded in 2005. Cash flows from operating activities decreased 7% in 2006 compared to 2005.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. 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. Moreover. Net cash provided by operating activities reached $5. from $6.  DECLINE IN CASH FROM OPERATING ACTIVITIES The company’s cash flow from operating activities declined during fiscal 2006.

slightly sweetened refreshment drink) segment is growing by about $10 billion annually. In terms of value. Market consumption volumes were estimated to be 30 billion litres in 2006. These also give Coca. through new product launch or greater penetration of existing markets. The market's consumption volume is expected to rise to 38. its bottling joint venture with the Kerry Group. reappointed Coca-Cola China Industries (CCCIL). Coca-Cola also made acquisitions in Australia and New Zealand during 2006.6 billion units by the end of 2010. On 25 February 2010. Coca-Cola has also acquired a 100% interest in TJC Holdings. a bottling company in South Africa. the revenue of flavoured water (water-based.Cola an opportunity for growth. The Page 41 .9% during 2005-2010. These acquisitions strengthened Coca-Cola’s international operations.6 billion in 2006.3 billion by the end of 2010.  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 bottled water market is forecast to reach $19. The market for bottled water in the US generated revenues of about $15. (KBL). Coca-Cola acquired a controlling shareholding in KBL. Coco cola confirms to acquire the Coca cola enterprises (CCE) one the biggest bottler in North America. which was subsequently. In the bottled water market. in Hong Kong. This strategy of coca cola strengthens its operations internationally. In Germany the company acquired Apollinaris which sells sparkling and still mineral water. its acquisitions included Kerry Beverages.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  ACQUISITIONS During 2006. Stronger international operations increase the company’s capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. The acquisition extended Coca-Cola’s control over manufacturing and distribution joint ventures in nine Chinese provinces. This represents a CAGR of 6.

sales Page 42 .a 55% increase over 2003 levels. In 2006. Competitive factors impacting the company’s business include pricing. which would translate into higher consumption of Coca-Cola products and higher revenues for the company. they have become more important to marketers than ever before. Also. the Hispanic population will reach 60 million or almost 18% of the total US population. The economic influence of Hispanics is growing even faster than their population. advertising. Other significant competitors include Nestle. PepsiCo is one of the company’s primary competitors. about 11. THREATS:  INTENSE COMPETITION Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry.  GROWING HISPANIC POPULATION IN U. including the US. As a result. This translates into a Hispanic population of about 42 million. The company can benefit from an expanding Hispanic population in the US. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavoured water. The company faces intense competition in various markets from regional as well as global players. In many of the countries in which Coca-Cola operates.“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. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008. The US Census estimates that by 2020. the company faces competition from various non-alcoholic sparkling beverages including juices and nectars and fruit drinks. Groupe DANONE and Kraft Foods.S Hispanics are growing rapidly both in number and economic power.6 million US households were estimated to be Hispanic. Cadbury Schweppes. Coca-Cola has extensive operations and an extensive product portfolio in the US.

this representing a compound annual growth rate (CAGR) of only 0.  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. may be detrimental to Coca-Cola.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” promotion programs.9 billion in 2005. Such dependence on third parties is a weak link in Coca-Cola’s operations and increases the company’s business risks. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US.  SLIGGISH GROWTH OF CARBONATED BEVERAGES US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. As independent companies. some of whom are publicly traded companies. product innovation. In addition. its bottling partners. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners. 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.2% for the five-year period spanning 2001-2005. In addition. The performance of the Page 43 . while maximizing their own short-term profits. 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. many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. Intense competition could impact Coca-Cola’s market share and revenue growth rates. 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. Such actions could. in the long run. and brand and trademark development and protection. make their own business decisions that may not always be in line with the company’s interests. In 2006. then the partners may take actions that. The US carbonated soft drinks market generated total revenues of $63.

9 billion by the end of 2010. Coca-Cola’s revenues could be adversely affected by a slowdown in the US carbonated beverage market. Coca-Cola already expects its performance in the region to be sluggish during 2007. and have been implicated for facilitating poor diet and increasing childhood obesity. Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to Page 44 . Moreover. 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.“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. with an anticipated compound annual rate of change (CAGR) of -0. 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 in the recent years.

They launched an extensive market research in India. they featured the same quote with different regional entities. and reached to a conclusion that competitive pricing was unavoidable.“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. 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. During their absence. They ascertained that in India 3 As must be applied. LIMCA. they had to re-think their market strategies. Hence. which turned out to be a mistake. Further. In 1993. 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. Coca-Cola invested heavily in India for the first five years. hence leading to profit. 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. which got them credit of being one of the biggest investor in the country. Affordability. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’. Availability and Acceptability. Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i. coca cola bought the whole Parle Brother operation. Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”. Parle brothers introduced a new type of cola called THUMS UP. their strategy was to make Bollywood or Tamil stars to endorse their products. Presently. in a hope to beat the main competitor (Pepsi). their sales figures were not so impressive.5. and mango flavoured. In various regions they tried portraying coca cola products with different regional food products. Since then they introduced a 200 ml glass bottle for Rs. Along with. coca cola returned to India and witnessed a different culture and economic platform. they also formulated a lemon flavoured drink.e. “Lassi” etc. MAAZA. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover. they had different advertising campaigns for different regions of the country. “Narial Pani”. however. Page 45 . After 16 years of absence. In the southern part.

000 people in related industries through its vast procurement. compared to its arch rival. Page 46 . the business system of the Company directly employs approximately 6. In 2002. With virtually all the goods and services required to produce and market Coca-Cola being made in India. supply. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket.“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. they have regained their throne. On the distribution front. 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. with another 25 being owned by franchisees. music & food. Diversifying their product range and having a competitive pricing policy. even in remote and inaccessible parts of the nation. PRODUCTS OF COCA-COLA INDIA COCA-COLA:In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. Pepsi. 36% in Fruit drinks Segment. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. a network of 21 contract packers manufactures a range of products for the Company. That apart.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s favourite soft drink brand. The Indian operations comprises of 50 bottling operations. movies. and distribution System.000 people. 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. 25 owned by the Company. and indirectly creates employment for more than 125. 33% in Packaged water Segment.

Thums up was acquires by The Coca-Cola Company in 1993. 2L. 1000ml PET 500ml. 500ml. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of “Freshness”.5L. 1.0 CAN 330 ml FOUNTAIN VARIOUS SIZES LIMCA:Limca was introduced in 1971 in India. anywhere.25L. 300ml.1. 500ml. 2L. Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. Derived from “Nimbu” + “Jaise” hence Lime Sa. Limca can cast a tangy refreshing spell on anyone. 1. Limca has remained unchallenged as the No. 500ml.25L. 1000ml PET 500ml. 100ml Table . 300ml. Originally introduced in 1977.1 sparkling drink in the cloudy lemon segment. 500ml.1. Thums up Page 47 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” GLASS 200ml. 2.1 CAN 330 ml FOUNTAIN VARIOUS SIZES THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. GLASS 200ml. 100ml Table . 2.5L.

Over the years Fanta has occupied a strong Page 48 .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. RGB 200ml. 1500ml. 600ml. 2000ml.25L. GLASS 200ml. 2250ml CAN 330 ml FOUNTAIN VARIOUS SIZES Table – 1.5L. 1250ml. 2. 100ml Table .1.3 FANTA:Fanta entered the Indian market in the year 1993. fizzy taste and it confident. 500ml. 2L. mature and uniquely masculine attitude. Sprite with its cut-thru perspective has managed to be a true teen icon. 300ml. 500ml. Launched in 1999. 300ml PET 500ml. 1. This brand clearly seeks to separate the men from the boys. 1000ml PET 500ml.“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.

1. They branded it Minute Maid a name connoting the convenience and the ease of preparation. tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. 500ml. 300ml PET 500ml.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” market place and is identifies as “The Fun Catalyst”. 2L. MAAZA:Maaza was introduced in late 1970’s. 100ml Table – 1. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. GLASS 200ml. This positive imagery is associated with happy. 1. 2. 1 litre.5L.25 litres. forming a frozen concentrate that when reconstitute created orange juice. Perceived as a fun youth brand. 400ml. Fanta stands for its vibrant colour.25L.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. The company developed a process that eliminated 80% of the water in the orange juice. Available in 3 PET pack sizes i. 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. cheerful and special times with friends.e. Maaza has today come to symbolise the very spirit of Page 49 .

Today Georgia coffee is available at Quick-Service Restaurants.5 POCKET MAAZA 200ml KINLEY:The importance of water can never be understated. The Georgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. RGB 200ml. Americano. Particularly in a nation such as India where water governs the lives of the millions. Cardamon Tea.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” mangoes.6 MARKETING MIX OF COCA-COLA INDIA Page 50 . Maaza is the mango lover’s first choice. 250ml PET 250ml. 600ml. Cinemas and in Corporates across all major metros in India. Cold Coffee. Kinley water comes with the assurance of safety from the Coca-Cola Company. 1. Table – 1. Available in PET 500ml and 1000ml. COLD BEVERAGES Ice Teas. Mochaccino. Caffe Latte.2L Table – 1. be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004. Airports. Cappuccino. HOT BEVERAGES Espresso. Universally loved for its taste. Hot Chocolate. colour. thickness and wholesome properties.

CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. In 2002. The advertising Campaign highlighted the affordability and Indian image. Fanta. but it was an attractive proposition for bottlers as it increased plant utilization rates. Coca-Cola. priced at Rs 3 per cup in testing marketing exercise conducted in mid – 2002. This meant CCI had three orange.  PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like India. Bottled water was another area where Coca-Cola identified major opportunities. In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s Aquafina. Minute Maid and Georgia Gold.“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. So the 200ml pack priced at Rs 5 was rolled out countrywide in January 2003. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra. Packaged drinking water in India was a Rs 1. This acquisition added Crush. Thums Up. Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water). As a result 12 more bottlers were brought into CCI’s fold. PDW was a low margin – high volume business. The volumes went up by 30% demonstrating the importance of consumer affordability. clear lime and cola drinks each in its portfolio. Maaza. The product not only faced intense competition but also was difficult to differentiate. To make it affordable.e. In 2000. Coke introduced Kinley in 200ml pouches for Re.000 cr industry and growing by 40% every year. In 2002 Kinley with 35% market share had become the leader in the retail PDW segment and was contributing 20% of CCI’s revenues. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers. In early 1999. the parent company acquired Cadbury Schweppes. Canada Dry and Sport Cola to CCI’s product line. Page 51 . Sprite.

support systems and culture to leverage the local capabilities. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. The heads of the divisions reported to the CEO. Each region had a president at the top. as a deliberate strategy. The four bottling operations. Inadequate marketing support for other Parle brands also led to their declining market shares. Under the new plan. CCI's operations had been divided into North. marketing and brand building were taken up locally. with divisions comprising marketing. with 37 bottling plants. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. Central and Southern regions. All the RGMs reported to VP (Operations. were merged into Hindustan Coca-Cola Beverages (HCCB). CCI focused on establishing the Coca-Cola brand quickly. human resources and bottling operations. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. Each plant was headed by an Area General Manager (AGM) and held profit center responsibility for a business territory.“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.  PROMOTION:In the initial years. who in turn reported to CEO. Coke. Each of the six regions had on an average six bottling plants. Bottling operations were divided into four companies directed by the bottling head from headquarters. decided not to spend heavily on promoting Thums Up. They argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and Page 52 . CCI shifted to a six region profit center set up where product customization and packaging. The bottlers taken over by Coke also had problems adjusting to a new work culture. The aim was to effectively align CCI's corporate resources. Thumps Up remained neglected. He reported to the RGM as well as the head of bottling at the head quarters. finance.

Since India was a large country of different tastes and cultures. During 90'ies Coke's promotion efforts did not seem to be effective. was repositioned as a juice brand and saw a growth of almost 30% in 2001. 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.2 cola drink after Pepsi. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. Coke had plans to launch Rimzim. By 2002. which are aimed towards the young. The revised value of CCI's assets after the charge was $300 mn. But things were far from normal. In 1998. To maintain good relationships with bottlers and avoid defections to the other camp. Coke wrote off investments in India. Thumps Up in Mumbai and Andhra Pradesh. Coke also began efforts to rejuvenate the Parle brands. and Sunil Gavaskar to promote Coke. In 2000. it had become India's No. dealers had been pampered by offering expensive overseas trips. Coke is primarily targeted at young individuals over the age of twenty-five. CCI customized its marketing strategy for different regions. and Fanta in Tamil Nadu. CCI spent $3. This can be seen by Coca-Colas advertising campaigns. It promoted the Coke brand in Delhi. amounting to $400 Mn. a spicy soda drink in North Maharashtra. the mango drink. Maaza.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” asked CCI to take corrective action. Limca and Thumps Up. India was declared the fastest growing market within the Coca-Cola system. CCI signed up celebrities like Aamir Khan. Aishwarya Rai. They were focused on mega events like the 1996 Cricket World Cup held in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign.5 mn to beef up advertising and distribution for Thumps Up. In 1998 localization of marketing efforts. PESTEL ANALYSIS OF COCA-COLA INDIA Page 53 . by featuring well known personalities popular to this age group.

the most controversial. Due to the lack of consistency in the legal aspects. Legal and Environmental. To make things worse. 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. However. the primary barrier for Coca-Cola’s entry into the Indian market was its political environment. the policies were neither clear nor unchanging. India’s past promotion of “Indigenous availability” or “Swadeshi movement” depicted its affinity for local products. Technological. 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. However. Due to India’s suspicion of foreign business entering Indian markets. They re-entered the country in 1993. more importance was being given to lobbying the politicians. Despite the liberalization of the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers such as bureaucracy and regulation. and by far. On August 5 th Page 54 . For example. there was still a lot of protectionism. Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to Lehar Pepsi). Economic. foreign businesses were not allowed to market their products under the same name if selling within the Indian market. 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. Thus. Social. This and some of the policies imposed on foreign enterprises proved as a hindrance to the growth of the company in the country.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” PESTLE stands for Political. Coca Cola India has faced its fair share of problems. Coca Cola received alien status its re-entry.

For example. Kerala. Due to this. there are certain positives as well. restaurants. This had an adverse impact on the sales of Coca Cola. However.8% same time in the previous year. Economic Analysis: The Indian economy sustained the global economic slowdown in the previous year and has shown a tremendous economic growth. But this was not the end of Coca Cola’s troubles.  Economic growth Page 55 . Many leading clubs. 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. This threatened the newly achieved leadership attained over Pepsi due to a successful marketing campaign. in Plachimada.6% of growth in the last quarter of 200910 as compared to 5. and college campuses across the country had stopped selling Coca-Cola. with a 22 percent increase in its unit case volume last quarter. near Varanasi. The company has also been accused of illegally occupying a portion of the village property resources in Mehdiganj. with a drop of almost 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory. There was widespread discontent around many of their plants. retailers. the communities in and around the Coca Cola plant blamed the factory for their water problems.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2003. It showed 8. According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August. 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". The Centre for Science and Environment (CSE). It has emerged as an attractive economy to invest in as many opportunities has been recognized. the local Panchayat decided not to renew the license issued to Coca Cola to “protect public interest".

Analysts have said that India will be the third biggest economy of the world in the coming year behind China and USA. they have not revised their product prices. Coca cola India returned to the country in 1993. especially oil. The inflation rate for the year 2009 was recorded to be 11. It has introduced two new products. the beverage king reported a growth of just 5% (worldwide) in the same quarter. It is the 16th consecutive quarter of such growth out of which 13 are double digit. The strong economic growth of India has resulted in coca cola to invest heavily in sales and distributive channels. Their expenditure has been rising.“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. Coca cola India’s growth is in contrast to its overall performance. Beverage industry being price competitive market. Nimbu Fresh and an energy drink ‘Burn’. With economic growth many opportunities have been seen. As prices have gone up in India for various products. Coca cola registered 22% growth in their unit case volume in the second quarter (April-June). despite few problems in the start they have emerged as the king of soft drink industry in India.  Inflationary effects Inflation is one of the main problems that Indian economy has been facing for a year now. as they have been rising due to inflation. 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. there has been uncertainty in decision making of almost every company. which have attracted many foreign investor to the company. distribution channels and other operating costs. with more costs in salaries. Coca cola India has also been affected by the same. Exchange rate Page 56 . it has been forced to think about their input costs.49%.

However. amidst competition from Leher Pepsi which had the advantage of entering the country 7 years earlier. Also. However. and were also cheaper alternatives to CocaCola. supply and distribution cycles. has made significant investments to build its business in India. things were brought under control when Thums Up was bought over by Coca Cola. Coca-Cola had earlier focussed more on the American way of life in their advertising campaigns.“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. on an average it has been around 47. and more attention was paid by the company on their marketing mix. It has also generated employment for almost 1. Social Analysis: Coca. Initially. more investment in market research and focussing on the target group of 18-24 year olds. Lassi etc. These products had been around for centuries. introduction of newer products which appealed to the Indian tastes. The soft drink industry today is growing steadily due to the booming economy. the rate of rupee to USD touched 44. Coca Cola today. Exchange rate determines at what price will the company export its products and import whatever is required by it. strengthened Page 57 . it struggled to find acceptance as there were already other brands such as Parle’s Thums Up which existed in the market. Therefore. With the lowering of their prices by almost 15-20%. coca cola India had to bear some low profitable times. they did not focus on competition from other alternatives such as lemonade. which the Indian consumers could not identify with.Cola returned to India in 1993 after a 16 year hiatus. The previous year.25. 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. so the exports earned less and the imports cost more.000 people in related industry through its procurement.

These initiatives are being taken by the company to further expand their product portfolio. The major focus would be on non carbonated drinks and flavours. With the increase in health consciousness among the urban consumers. It has also taken initiatives to promote education in rural areas. by tying up with many NGOs such as BAIF (or Bharatiya Agro Industries Foundation). one of them being ‘water conservation’. The rural market had also been identified by Coca-Cola India as an attractive target. Technological Analysis: Coca-Cola has started operations of its R&D facility in India. with almost 70% of the country’s population. With the increasing importance of 360 degree media tools and overall ad spend on social media sets likely to grow by almost 44%. which was first launched on the internet. SOS Children’s Villages and Save the Children.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” middle class and low per capita consumption. with the view of localizing its product portfolio. Case in point is the recent 2009 Sprite campaign. the company has introduced newer products such as Diet Coke. Coca Cola India’s Corporate Social Responsibility (CSR). The company’s R&D team has already rolled out drinks such as Maaza aam panna and also a Maaza mango milk drink. Coca-Cola has increased ad spend on the internet. which contain lesser calories than ordinary Coca Cola. sports drinks and flavoured water. and is exploring options to enter new categories in India such as juices in localised flavours. energy drinks. They support many community based rainwater harvesting projects and help Page 58 . The company has recorded significant growth in recent years Coca Cola India has also taken many initiatives as a responsible corporate citizen. Environmental Analysis: Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed in the footsteps. This is also responsible for the company shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled water. is an initiative that prioritizes many social and environmental issues.

Compliance with all regulatory environmental requirements 7. Energy conservation programs By following these guidelines Coca-Cola India has helped the environment with consistent profits and success. Coca Cola’s Kinley has 15 times more pesticide residual levels than the stipulated norms. these are as follows: 1. Water efficiency and water quality 2. Centre of Science and Environment in India. Bisleri had 59 times and Aquaplus had 109 times. On 4th February.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” lending conservation education. released a report based on experiment done by Pollution Monitoring Laboratory. Ground water and environment survey before selecting the site 4. Environmental impact assessment before commencing project 3. Eliminating or minimizing solid waste. 2003. Energy efficiency 3. Waste water treatment facilities 6. The company has made sure that the following ideas are considered during their operations: 1. they tested 17 packaged drinking water brands and found that. Ban on purchasing CFC emitting refrigerating equipment 5. In the experiment. Page 59 . Coca Cola India had to face its share of controversies. Thoug h being an environmental friendly company. They seek to provide leadership in three different areas. Environmental due diligence before acquiring land 2.

However.“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. But later it was found that BIS had stated that pesticides should not be present or it should not exceed 0. Further.001 part per million. Fig 2. the health ministry of India admitted that ‘there were lapses in PFA regarding carbonated drinks’. 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.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA Legal Analysis: Page 60 . which stated that pesticides should not be present in any food item but did not have law against pesticides being present in soft drinks.

When producing their beverages.  Employment Laws Ministry of Labour makes the laws for proper employment in the country. coca cola India cannot discriminate on social. Being a male dominated society. Ministry of Food Processing Page 61 . If it is found that the company has been violating the law. manufacturing date. and employees.“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. India has strict laws against employing child labour. if a product is defective. a business should plan out everything. the ministry has made sure that female employees are treated with respect and given equal importance at the work place. When employing anyone. these are to meet the norms and laws set by the labour ministry.  Consumer Laws In the present scenario. strategies so as to satisfy their consumers. Keeping in mind the consumer laws. regional or any racists’ basis. expiry date. antitrust law. the government is also paying special attention to consumer laws. not meeting the stated standards a consumer can complain against the manufacturer. Every field of work has got its own wage. batch no. 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. employment laws. nutritional facts are written on the packed product. there are laws that the company must abide by when producing it.  Health and safety laws As coca cola produces a product that is consumed by the consumer as a food item. discrimination laws etc. Coca Cola India has to make sure that they have written price. 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. Their main job is to see that the consumer benefits are being met or not. In the past. They have stipulated norms on employing people from the country and getting expatriates in the company as well. consumer is the king.

and Edible Flour (Control) Order. The Meat Food Products Order. Monopolies Restrictive and Trade Practices Act 1969 was replaced by it.  Anti-trust law The Competition Commission of India was made under the Indian Competition Act 2002. 1955 relating to food. 1954. 1947. 2006 that overrides all other food related laws. the act establishes a regulatory body. The Edible Oils Packaging (Regulation) Order. 1998. This committee looks after all the issues regarding unethical means of doing business. 1967. • Legal Advice and sophisticated insight into the international best practices on Page 62 . The Solvent Extracted Oil. 1992. volume and ingredients of the product. The Vegetable Oil Products (Control) Order. From now on. The export or the import of the products by the company has to meet the quality standards stipulated by the law. 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.“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. They have to check the weight. the Food Safety and Standards Authority of India. competition issues and any dispute between two different business entities. The Indian Parliament has recently passed the Food Safety and Standards Act. 1955. De oiled Meal. have to make accordingly to the laws. The Milk and Milk Products Order. Anything that coca cola makes. Essential Commodities Act. 1973. The Fruit Products Order. It will specifically repeal eight laws: • • • • • • • • The Prevention of Food Adulteration Act.

supply and distribution. franchisees etc. replies. joint operation and research. amalgamation. on Competition Law and related legal issues. joint buying. ‘promotional materials’.3 SWOT ANALYSIS OF COCA-COLA INDIA STRENGTHES:  DISTRIBUTION NETWORK The Company has a strong and reliable distribution network. Legal Due Diligence on anti-competition. joint ventures with appropriate antitrust safeguard measures and policy. acquisitions. rejoinders. • Consultancy services on specific issues . agents. acquisitions. distributors. representations etc. Strategic policing on anti-competition market practices and trends. • • • • • Competition Audit and Due Diligence for developing appropriate guidelines for employees. Any other business trying to copy the brand of coca cola will face the strict action against itself. counter-claims. Drafting claims. All these laws help Coca Cola India to maintain its own brand and values. pricing and marketing. the CCI makes sure that either of them does not indulge in unfair means to make profits and hurt each other’s business. Policy due diligence for mergers. SWOT ANALYSIS OF COCA-COLA INDIA Fig 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” competition law. As it is known that the coca cola and Pepsi are the fiercest rivals in the beverage industry. mergers. The network is formed on the Page 63 . unfair and restrictive market practices. ‘dominant-firm’ status etc. These laws help every business to compete in a fair environment. licensing.

Limca and Maaza add up to the brand name of Coca-Cola Company as a whole. Thums up. 700. Strong brand names like Coca-Cola. Portfolio. 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. Planet. It has a distribution network consisting of a number of efficient salesmen. The company has identified the 5 pillars as • • • • • People. The distribution fleet includes different modes of distribution. Page 64 . The products produced and marketed by Coca-Cola India have a strong brand image. Performance. Fanta.“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. Partners. The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. Coca Cola India for the first time has come out with corporate campaign in India targeting its stakeholders. 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.000 retail outlets and 8000 distributors. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy.

including multinational giants PepsiCo and Coca-Cola. the Centre for Science and Environment (CSE). These measures have reduced the costs of operations and increased profit margins. Page 65 . contained toxins including lindane.pesticides that can contribute to cancer and a breakdown of the immune system.governmental organization in New Delhi. Coca-Cola went about bringing a cost-focus culture in the company.“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. malathion and chlorpyrifos . there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. the Company finds it very difficult to invest in technological advancements and achieve economies of scale. said aerated waters produced by soft drinks manufacturers in India. OPPORTUNITIES:  LARGE DOMESTIC MARKETS The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market. trade discipline and control and proactive tax management through tax incentives.  SMALL SCALE SECTOR RESERVATIONS The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’. a non. DDT. In 2003. WEAKNESSES:  HEALTH CARE ISSUES In India. excise duty reduction and creating marketing companies. This included procurement Efficiencies – through focus on key input materials.

like Maaza etc and export them to foreign nations. chiefly led by Limca. Unlike olden times. People understand trade to a large extent and the demand for foreign goods has increased over the years. the per capita income has increased over the years and a majority of the people are educated.000 new outlets in the first two months of this year. In Bangalore.  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. the export levels have gone high. Coca-Cola amounts for 74% of the beverage market. THREATS:  IMPORTS As India is developing at a fast pace.  EXPORT POTENTIAL The Company can come up with new products which are not manufactured abroad. 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.500 new villages. as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3. Coca-Cola Company can take advantage of such a situation and enhance their sales. people now have the power of buying goods of their choice without having to worry much about the flow of their income. Other products account for 16 per cent market share.“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. The company appointed 50. Page 66 .

All these problems might lead to a slowdown in the demand for the company’s products. Page 67 . the production capacity is mentioned on the license and every time the production capacity needs to be increased.  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. power problems. When a license is issued. the license poses a problem. acute dependence on the vagaries of the monsoon. Therefore.  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.“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. Renewing or updating a license every now and then is difficult. seasonal consumption linked to harvests and festivals and special occasions. large number of daily wage earners. this can limit the growth of the Company and pose problems. it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. poor roads. and inaccessibility to conventional advertising media.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 4. RESEARCH METHODOLOGY Page 68 .

SCOPE OF THE STUDY:Page 69 .Cola Company.  The study was aimed 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.“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. This would help us identify areas of potential growth.  To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally.  To understand the reasons behind the purchase of Coca-Cola products.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” This study basically tries to discover the current position of Coca-cola in the market. such as the market potential for a product or the demographics and attitudes of consumers who buy the product. 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. Descriptive Research. Casual Research:The objective of casual research is to test hypothesis about casual and effect relationships. 3. It is primarily directed to the general public but was done only in New Delhi. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. Casual Research. 1. Page 70 . 2. Descriptive Research:The objective of descriptive research is to describe things. There are three types of objectives in a marketing research project:• • • Exploratory Research. Noida and Greater Noida RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the needed information.

SECONDARY DATA:It is defined as the data collected earlier for a purpose other than one currently being pursued.  Internet. 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.“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.  Text books. SOURCES OF DATA The data has been collected from both primary as well as secondary sources. PRIMARY DATA:- Page 71 . Secondary data in this study has provided an insight and forms an outline for the core objectives established. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products.  Marketing reports of the company. The various sources of secondary data used for this study are: News papers.  Magazines.

SAMPLING DESIGN An integral component of a research design is the sampling plan.  Personal interview. Making the census study of the entire universe will be Page 72 . RESEARCH MEASURING TOOLS & TECHNIQUES The primary tool for the data collection used in this study is the respondent’s response to the questionnaire given to them.  Personal Interview.“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.  Tables.  Pie-charts. how many to survey (Sample Size) and how to select them (sampling Procedure). The various research measuring tools used are: Questionnaire.  Percentages. Especially it addresses three questions: Whom to survey (sample Unit). The methods that have been used to collect the primary data are: Questionnaire.  Column charts.  Bar-charts.

Page 73 . Hence sampling becomes inevitable. Noida and Greater Noida. mainly because it gives the chance for timely feedback from respondents.  Questions were read out to the respondents and the answers were noted.“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.  The questionnaires were given to the respondents to fill in order to get their feedback. SAMPLING TOOL:Questionnaire was used as a main tool for the collection of data. sampling produces representative data of the entire population.7 150 27 177 Number FIELD WORK:The study was conducted in New Delhi. Through personal interview – 27 respondents. SAMPLE SIZE:i. Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Properly done. Through questionnaire – 150 respondents. ii. Sampling Tools Questionnaire Personal Interview Respondents Customers Customers Total Table – 1. Respondents seeking any clarification can easily be sorted out through tool. A sample is only his portion of population.

 Economic and market conditions are very unpredictable (Present and future). Noida and Greater Noida due to which the result cannot be applied universally.  The study was confined to New Delhi.“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. But there are certain factors which affects this study they are as follow:  Since the sampling procedure was judgmental.  The project duration is limited to 4 weeks so it limits the area of study. Page 74 . the sample selected may not be true representative of the population.

“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 .

7 SOFT DRINK CONSUMPTION & EXPENDITURE: From Fig 2.6. we come to know that the gender ratio of the total respondents is almost 2:1 (male: female). About 6% belong to age group below 20 and 3% belong to age group of 30-40.6 Fig 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.Form Fig 2.4 Fig 2. Page 76 .5. we interpret that about 48% of the total respondents consume soft drinks rarely or once a week. Fig 2. we can comprehend that 90% of total respondents belong to the age group of 20-30. This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group.5 AGE GROUP & GENDER: From Fig 2.4. About 35% respondents consume soft drinks twice or thrice a week and only 18% consumes soft drinks every day.

we have ascertained that preferred portal for purchase of Coca-Cola products is the retail shops i.8 PURCHASING PORTAL PREFERENCE: From the above data.9 REASON FOR CONSUMPTION: From this graph. Fig 2. Fig 2. This creates a potential growth market for Coca-Cola India.e. we interpret that about 81% of the respondents spend only Rs. 15% purchase while watching movies in the cinemas and only about 4% purchase during festivals and for picnic purposes. About 12% spends from 100-150 a week & 7% spend above 150.7. 23% prefer to purchase from Pubs. which is very low as compared to the global scenario.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” From Fig 2. whereas. From Fig 2. Although some of the advertising campaigns target special occasion or festivals. Restaurants and Multiplexes. This is probably because not all communities in India have supermarkets and other purchasing channels present nearby. we infer that there is no specific occasion why people purchase Coca-Cola products.19% prefer to purchase from Supermarkets and Vendor machines. we can find retail shops in every corner. 50-100 a week on Coca-Cola products.9 it is concluded that 59% respondents purchase Coca-Cola without any specific reason. 58%. Page 77 . About 23% purchase for the purpose of parties.

12. 26% want energy drinks. Fig 2. Fig 2.13 QUANTITY PREFERENCE: Page 78 . 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.11 Fig 2.11.12 OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS EXPECTED BY CONSUMERS: From Fig 2. we conclude that about 40% would like to see a new fruit drink being added to the product basket. 20% alcoholic drinks and only 14% want another fizzy drink. 23% prefer Pepsi Products and only 75 prefer other drinks. 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.10 SOFT DRINK PREFERENCE: From the above graph we interpret that about 70% of the respondents. From Fig 2. This clearly states why Coca-Cola is market leader with almost 60% of market share.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. prefer consuming Coca-Cola product over Pepsi and other drinks.

13.15.16 Fig 2.17 Page 79 . we infer that about 47% of respondents prefer to purchase PET bottle of Coca-Cola Products. Fig 2. Fig 2. About 27% prefer to purchase glass bottles.15 BRANDING & PRICING: From 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. we infer that about 62% of the respondent considers the pricing of Coca-Cola much more reliable than that of Pepsi. About 62% respondents said that they find Coca-cola products better than Pepsi and only 38% supported Pepsi products. About 38% respondents think that Pepsi have better pricing than that of Coca-Cola.14.14 Fig 2. it is concluded that respondents find Coca-Cola products better than that of Pepsi products. From Fig 2. 19% prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola.

18. Page 80 . 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. About 51% respondents think that Coca-Cola products are much easily available in the market. 27% respondents consider Pepsi products have better taste and quality.19 AVAILABILITY & SATISFACTION: From Fig 2. About 73% respondents consider that Coca-Cola products have very good quality and taste. it’s clear that Coca-Cola products have better taste and quality than that of Pepsi.17.16 & 2.18 Fig 2.49% consider that availability of Pepsi products is more in the market.19. Fig 2. it’s clear that there is slight difference between the availability of products of Coca-Cola and Pepsi.“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.

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” 6.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part of “Coca-Cola India”. The suggestions are arranged in order of priority, highest first.  Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.  The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.
 The company should focus to bring some more flavors like health drinks and other

low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as it has already entered the energy drink arena with “Burn”.  Coca-Cola’s distribution channel is mostly through retail. Whereas the competitors also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try to increase their distribution in these areas.
 The company must keep a watch on its primary competitors in market in order to be

able to compete with them.
 The company should use new attractive system of word of mouth advertisement to

keep alive the general awareness in the whole market as a whole.
 The company should be always in a position to receive continuous feedback and

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

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“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.

CONCLUSION
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.

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

BIBLIOGRAPHY BOOKS:
 Marketing Management – Kotler Philip.  Research Methodology – Kothari.

WEBSITES:
      

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

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

OTHERS
 Annual report of Coca-Cola 2008.  Annual report of Coca-Cola 2009.

ANNEXURE
QUESTIONNAIRE
 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?

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“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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