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Introduction :

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, the Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local operations in over 200 countries around the world. The Coca-Cola company exists to benefit and refresh everyone it touches. The basic proposition of the business is simple, solid and timeless. The company aims at bringing refreshment, value, joy and fun to its stakeholders, they successfully nurture and protect brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. More than a billion times every day, thirsty people around the world reach for Coca-Cola products for refreshment. They deserve the highest quality every time. Our promise to deliver that quality is the most important promise we make. And it involves a worldwide, yet distinctively local, network of bottling partners, suppliers, distributors and retailers whose success is paramount to our own. Our investment in local communities in over 200 countries totals billions of dollars in jobs, facilities, and marketing, the purchase of local goods and services, and local business partnerships. Always and everywhere, we pursue continuous innovation in the products we offer, the processes we use to make them, the packages we develop and the ways we bring them to market.

The Coca-Cola system is one of the most diverse organizations on earth, with a rich mosaic of talented colleagues who bring a variety of intellectual, professional, ethnic and cultural perspectives to our enterprise. They reflect the nations, cultures and languages of the world. Our policy is to foster an inclusive environment that encourages all employees to develop and perform to their fullest potential.

OBJECTIVE

OF COCA COLA

The company has sales based objective .Every thing else (marketing plan, advertising plan, production etc.) is derived from this objective. Currently the companys objective is to Increase the volume of sales up to the maximum level as much as possible during the current fiscal year. The company sets its objective keeping in view the past performance, Historical trends, current market position, economic condition, macro environment and micro environment factors, social values, market size and growth rate ,future expectations and predictions.

RESEARCH METHODOLOGY
Researcher began his survey with route riding, i.e. traveling along with the sales persons on his daily trip to service the retailers. Researcher asked the retailers about their uses of Coca-cola merchandises and try to Asses the market share of the Coca-colas different brands. This is very important point as it gave me an inside view of the whole setup and further on during the planning of any of the promotions. Researcher was aware of the

limitations and strengths of the environment he would be working in. The various methods and principles adopted are listed below: Research Plan: Date sources: sources of information are as follows: (1) Primary sources Retailers are the primary source.
(2) Secondary sources Researcher collected secondary information from

Journals of Company, News papers, Magazines.

Scope of the Study


By this study company can know its growth. This study helps the company to know their actual position in the market. To find out the promotion activities of the company and to make relevant changes according to their rivalry company. This study ensures the availability of the product in the market. The study also helps in the evaluation of the market developer. To maintain the outlets in a well designed way to attract the consumers.

LIMITATIONS OF THE STUDY


Every study has some limitations in terms of time, cost or human error etcI have tried my best at my level to make it an original and a genuine one. Due to shortage of time it may be that the expectations wouldnt have been met, still an attempt has been made inorder to

represent one of the best reports. This project report aims at describing the processes that are followed while making payments to the vendors, receiving payments from the distributors. I have tried to explain the actual process but the meaning that it has is not what it actually is. Some human errors would have been resulted while preparing this project report.

Chapter - 2

COMPANY PROFILE
If we Indians recall our memory there was a time when one was asked for a soft drink, the brand that comes and gave a knock on our mind was Coca-Cola. Coca-Cola, the word most admired trademark has maintained its special a sense of belongingness to India, which had resulted some sort of its monopoly throughout the Indian soft drink market. It has been said that the internal environment of the industry has been greatly effected from its internal environment. The same thing was also happen with this famous company. When the Government policy were in introduce and forced this MNC's to go outside from the India market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that time in the country's soft drinks market. How ever after a gap of 17 years, the Coca-cola has reappeared in the soft drinks market of India, by making itself more strong and confident in this field. In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon 10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks market. Due to a manifold increase in the demand of soft drinks large number of company has entered into this competitive market scenario. In India two major companies engaged in soft drinks market are Pepsi and Coca-Cola. While RC cola is still a novice in the Indian Market, although it being the world oldest soft drinks manufacturer.

Pepsi-Cola attacked Coca-cola before World War-II. Coca-Cola dominated the Americans soft drinks industry. Pepsi-Cola was a drink costing less to manufacturers and with a less satisfactory taste than coke. During the Second World War Pepsi and Coke, both of them enjoyed a huge sale. After the war the Pepsi sales started to fall relatively to Coke. The factors which were responsible for the decline in Pepsi sales were poor image, poor task force, poor quality control and dull packaging. It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling facility of Coca-Cola in India was switched on. The Indian people welcomed the come back of their most loved cola in the country with great enthusiasm and vigor. Coca-Cola market its relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-Thums up, Sprite, Limca, Fanta, Mazza, K. Soda,Kwater,Coke. In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped than the plant at Ghaziabad.

A 100 YEARS OF THE SURVY GLASS BOTTLE OF COCA-COLA Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga; Tenn where its first bottling plant was started 100 year ago by two men struck one of the most lucrative business deals in US history. Joseph Whitehead and Benjamin Thomas offered Coca-Cola Company owner Asia Candler a dollar for the right to bottle soft drinks in 1899. Today I billion soft drinks are sold each day in more than 200 countries around the world. Candler had purchase what would become the Cola Company for $2,300 eight years earlier from John Pemberton, an Atlanta Phamacist who astonished the world. Candler thought the bottling Venture would never succeed, but he signed the contract with White Head And Thomas and way, "and the rest is history", Bob Lovell, vice president of marketing for CocaCola bottling company, United Inc., said in telephone interview from Chattanooga. Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a Pineapple beverages, from bottles while he was stationed in Cuba during Spanish American War. When he returned to Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which was then sold only as a fountain beverage. "It occurred to him that Coca-Cola in bottles would be very popular", Lovell said, "Mr. Candler did not see any future in it because the containers were not sound, but that's how it all came about. "Thomas and Whitehead

promised to pay one dollar for the right to bottle Coca-Cola, but legend has it that no money changed hands.

Product Profile
Coca Cola in IndiaAfter a 16 years absence, coca cola returned to India on October 26,1993 with its launch in Agra. An engagement in March 1993 with the Parle Group gave the company instant ownership of the nations top soft drinks brands, with access to parles 53-plant botteling network, and a base for rapid introduction of the companys international brands. This network remains Indias largest soft drink bottling and distribution infrastructure, reaching out too Indian consumers through a universe of over 8000000 retail outlets spread across the country. As the leading producer and marketer of soft drinks in India, the company leads the flavoured, carbonated soft drink market . the Coca-cola Companys products in India include the companys international brands- Coca cola, sprite and fanta, as well as Indias leading soft drink brands, Thumps Up Limca and Maazabrands acquired from the Parle Group in 1993.

Brands in India:1. Coca-Cola 2. diet Coke 3. Sprite


4. Fanta

5. Schweppes 6. Thums Up 7. Limca 8. Maaza 9. Citra

10.Gold Spot 11.Kinley water 12.Sunfill concentrate 13.Shock 14.RIMZIM COCA-COLA Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was registered as a trademark in 1887 and by 1895 Coca-Cola was being sold in every state and territory in the United States. In 1899, the company began franchised bottling operations in the United States. Today, you can find Coca-Cola in virtually every part of the world. The Coca-Cola Company has nearly 400 beverages in its portfolio. FANTA A favorite in Europe since the 1940s, Fanta was acquired by The Coca-Cola Company in 1960. Fanta Orange is the core flavor, representing about 70% of sales, but other citrus and fruit flavors have their own solid fan base. Consumers around the world, particularly teens, fondly associate Fanta with happiness and special times with friends and family.

This positive imagery is driven by the brand's fun, playful personality, which goes hand in hand with the bright color (particularly orange), bold fruit taste, and tingly carbonation. Fanta sells best in Brazil, Germany, Spain, Japan, Italy and Argentina. Fanta distribution was increased in the U.S. in 2001 with the return of four flavors: orange, strawberry, pineapple and grape. Orange, the biggest seller, is now available in most of the country. KINLEY Introduced in India in August 2000, Kinley is purified bottled water. In a country where many people are concerned about reliable drinking water, Kinley delivers a product that is safe and suitable for consumers and their families. Within ten months of its launch, Kinley had emerged as India's number two packaged water and is currently the number three Coca-Cola product in India. Especially popular among adults who seek a better quality of life and a healthier lifestyle, Kinley is available in a range of packaging including 500 ml, 1 liter and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars for inhome consumption LIMCA Light and Lemony This thirst-quenching beverage features a fresh, light lemon-lime taste and fun-loving attitude. It's a homegrown, national treasure in India, where it was acquired by The Coca-Cola Company in 1993. The product's

invigorating taste and cloudy look haven't changed, but the brand has been revitalized with a new marketing campaign. Limca continues to build a loyal following among young adults who love the lighthearted way it complements the best moments of their lives. It's also become a hit in many Persian Gulf countries. Grab a Limca and go. MAAZA "Yaari-Dosti Taaza Maaza" With the real fruit taste kids love, plus added calcium, Maaza's tagline, "Yaari-Dosti Taaza Maaza" means "Friendship moments with fresh Maaza" in Hindi. Maaza was introduced in India in 1984 as a noncarbonated mango fruit drink. It was acquired by The Coca-Cola Company in 1993 and is currently available in three flavors, mango, pineapple and orange -- plus added calcium. THUMS UP Strong Cola Taste, Exciting Personality Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys. Its tag line says it all: "Thums Up, I Want My Thunder."

Bottling Information The Coca-Cola Company received approval from the government in July 1996 to set up a holding company to invest US$700 million in downstream operating subsidiaries to engage in the preparation, packaging, sale and distribution of beverages. In July 1997, the holding company was permitted by the government to operationalize its bottling subsidiaries. The bottling subsidiary currently owns and operates twenty-six bottling plants and sixty distribution centers across India. In addition, it uses 20 contract packers to augment its production capacity and cater to the increasing demand for its wide portfolio of beverages. To reach India's 300 million soft-drink consumers, the company distributes its products in over 700,000 retail outlets, serviced via trucks, converted threewheelers, tricycles and pushcarts.

COCA-COLA SYSTEM FLOW CHART

Raw Material

Coca-Cola Company Bottler

Customer

Consumer

COCA COLA: THE STORY BEHIND


History : Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in Atlanta, Georgia. The drink was sold ad refreshing elixir at the fountain counter of Jacob's Pharmacy of which Dr. John Pemberton was part owner, unaware that the pharmacist had given birth to a caramel colored syrup which is now the chief ingredient of the worlds favorite drink. Today the white-on-red flow of Coca-Cola is familiar sight in more then 195 countries. The syrup combines with the carbonate water to fuel a $ 16.2 billion corporation that has captured a 46% Slice of the global soft drinks market. The company estimates that the drink is served more than 773 million times every day and if all Coke ever produced were filed in standard bottles and placed end to end it would wrap around the equator 21, 161 times. The story of Coca-Cola is a story of a drink and its charm with the consumer. The of ecstasy and again that the drink has caused to those dedicated to its growth Pemberton first managed to sell and average of 9 drinks per day, though a shop called Jacob's pharmacy, in 1891, Candler bought Coca-cola company with four companies he formed the coca-cola company with the initial stock of $100,000. Coca-Cola was registered at the US patent office in 1893, and began selling at soda fountains for 5 cents a glass of therapeutic refreshment 1894, I got into bottles, courtesy a candy merchant Joseph Boedenharn of Mississippi. Five years later; the drink was being bottled on a regular basis under a region wise franchising system; and its first competitor Pepsi cola, Coca-Cola's first

bottling plant opened in Chatanooga, Tennessee followed by another in Atlanta in 1900. The unique taste of cola was an outstanding success. Over the next two decade the number of plants crossed 1000. In a bit to difference the prodect, the company adopted 6.5 ounce, pale green countor bottle designed by the root glass company of Terri Haute, Indiana. Today it is an intrinsic part of the brand. The company broadened its horizons when Robert Woodruff the son of a banker who acquired to Company for $25 million in 1919, assumed charge in 1923. He began by ungrading bottling operations, brought in innovations like a six-bottle carry home carton, and gear up advertising support. It was under Wood Ruff that the brand. Known affectionately as coke by now associated it self with sportive events. By the early 1940's the brand was selling as the "real thing" to set it self apart from "me to" cola's. As a time went by the company brought out some new aerated drinks. The first one "Fanta" appeared in the selves in 1960. Its birth was an accident, the company's German name is an attempt to produce Coca-Cola without some key ingredients, turned out into an orange flavored drink instead. its strategists who feared the dependence on just one put a cap on growth welcomed it. While Fanta was being rolled out the company bought minute made cosrp. Which in 1967 was combined with Duncan foods to pave way for the Coca-Cola foods. Several beverages followed the most notable being 'sprite', a lemon drink developed in the late 1950 and formally launched in 1961.

Coca-Cola had diversified the company into businesses and it even had a steam generator and boiler making division. Robert C Goizueta, Cuban born 27 years veteran took over as the Coca-Cola unlike Pepsi company depended on a single brand. The best insurance policy that he figured was to let coke evolve to the summer slacking it with variants, even reinventing if needed. In 1982, the company launched what is now considered among the world's most successful brand extensions 'Diet Coke', under the leadership of Sergio Zyman, the head of us marketing. The idea was to retain the loyalty for the health conscious drinker who loved the taste but hated the calories. After this it came out with cafeeine free versions of its main drinks. yet in the US the company kept losing ground to Pepsi. zyman, a former Pepsi marketer argued that the correct strategy was to replace 98 year old with better tasting cola, label it as "New Coke" and blare the news which is exactly what the company did more a decode age in 1985. But when placed on the shelves it did not budge. On wide spread protest it was recalled after 79 days. The company has about 100 brands in its portfolio but coke, Fanta and sprite account for most of its sales. In 1994, the real thing's coke sold over 52.5 billion liters. For the taste of it diet coke along with Coca-Cola light sold 8.5 billion liters, which makes it the world's two top non cola drinks sold over 6.5 billion liters each. Which sprite aimed at the independent youngster two does not care what as others drink (the as line "obey you're a thrust"). In 1993, Coca-Cola reentered India after a 16 years ling exile, four years Pepsi made its debut India. While Coke plays on brand nostalgia. Pepsi address the young crowd, which unlike a in America is a dominate ort if the population here.

THE COCA - COLA COMPANY


The Coca - Cola Company is the world's largest beverage company. Along with Coca - Cola, recognized as the world's best - known brand, The Coca Cola Company markets four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite, and a wide range of other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and sports drinks. Though the world's largest distribution system, consumers in more than 200 countries enjoy The Coca - Cola Company's products at a rate exceeding 1 billion servings each day. Bottling One of our great strengths is our ability to conduct business on a worldwide scale while maintaining a local approach. At the heart of this approach is our bottling system. Before any one of our nearly 400 brands is consumed by anybody around the world, it has to be produced, packaged and distributed. Since we reach six billion consumers in over 200 countries, our bottling system has to be the best. Our bottling partners are local companies - some independently owned, some partially owned by The Coca-Cola Company - so they are rooted in their communities, thinking and acting locally. They are employers, purchasers of local goods and services, good neighbors, and, of course, producers of the world's most popular beverages. It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance, boats transport Coca-Cola and our other brands between the

many hundreds of islands that make up that nation. In the Amazon, where the main road is often the river itself, water-borne distribution is also common. In some of the higher elevations of the Andes, Coca-Cola is sometimes transported by four-legged power. Across much of Africa, bottlers deliver to thousands of family-run kiosks and home-based stores on which local economies depend. Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today. 1894 A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. 1899 The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States -- for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. 1916 Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark! 1920s Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales. 1920s and '30s International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. 1940s Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business. 1950s Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960. 1960s New brands introduced Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by POWERaDE and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world.

1970s and '80s Consolidation to serve customers As technology led to a global economy, retail customers of The Coca-Cola Company merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and mediumsize bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers. 1990s New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa. 21st Century Think local, act local The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between CocaCola bottlers, customers and communities are the foundation on which the entire business grows.

Chapter 3

Marketing Environments: The forces outside marketing that affect marketing management ability to develop and maintain successful relationships with its target customers. There are two types of marketing environments that may affect any companys operation, Microenvironment and the Macro environment. Micro environment factors affecting coke: First we consider the microenvironment factors. Customers: Recent survey shows that coke is the only product in the world with which more than 85% of the population is well aware of. All the companies have to keep updated study of their customers and in case of coke the company has always maintained excellent customer retention. Value of customers for coke can be understood by these factors that coke spends lot of efforts (financial and human resource) on customer research. For example, Coke knows through market survey that we put 3.2 ice cubes in a glass and one million of US population drinks coke with breakfast every day. This is how coke has been favorite drink of customers for centuries. Coke customers vary massively in terms of age. From kids to youngsters, from youngsters to elders and from elders to older, coke has always captured high customer attention from decades. We can divide coke customers in different categories. Consumer Market:

This is the group of consumer from where coke purchases are at the highest level because consumer market includes individuals and households. Households mostly buy coke for daily use in large number and purchasing by individuals is also the case of repeat purchase. Healthy consumer market is a big advantage for the company. Reseller Market: Reseller market of coke is very large all over the world. This is the market, which buy the product from company and resell it at profit. In India Pepsi is the biggest example of reseller of coke. Pepsi purchases coke from the company and sell it with each fast food deal served at restaurant. The survey shows that each branch of Pepsi located in Patna sells approximately 50007000 liters of coke daily to its customers. International Market: International market consists of those buyers who are in other countries. Coke is worldwide known product and every country where coke is been sold has a manufacturing unit of its own. Similar is the case in India. Coke manufacturing plants are in New Delhi, Gujrat, Chainnai, Mumbai, and these plants are producing the drink for the local use. So in India there are no international buyers of coke.

Characteristics affecting Consumer Behavior:

Coke purchases are influenced strongly by cultural, personal, social and psychological characteristics. Cultural Factors: Every group and society has its own culture. Cultural factors affect coke purchasing massively. Different communities and group of people have reshaped Indian culture. The festival in all over India specially has become important part of our culture in which sales of coke go very high. Soft drink is purchased in bulk for the parties and other occasions. Social Factors: Social factors include consumers family, small groups and status. Family members can affect buying behavior in such a way that if number of children are more in a family than the elders, then the children choice can matter a lot at time of soft drink purchase. Parents most of the time, have to go according to kids choice and kids have more interest in cola drink as compared to the elders. On the contrary sometime people go for the product that shows their status in society. If a person has high status in society he or she might never go for disposable coke bottle instead they might prefer the CAN packing of coke. This change is due to the status matter.

Personal Factors:

Buyers decision is also influenced by personal characteristics such as buyers age and life cycle stage, occupation, personality and self-concept. Age and lifecycle stage means that people taste and way of living changes with passage of time. Lets say in earlier stage of life if a persons best choice for soft drink was Coke classic but as he proceeds with his life, way of thinking and style may change. He may not opt for classic coke any more and might be more interested in diet coke. Occupation matters a lot when consumer is indulge in buying. If consumer is a student by occupation he will certainly go for returnable bottle of 8 RS or may be disposable bottle of 15 RS but most probably not for the coke CAN which is high in price. Where as if the consumer is a business executive who is financially strong will prefer more the coke classic can or diet coke can. This change is mainly because of occupation. Psychological Factors: A person buying behavior is further influenced by major psychological factors such as motivation, perception, learning and self-beliefs. Motivation is basically a drive thats sufficiently pressing a person to seek satisfaction of the need. Sometimes a person has no intention to buy a particular product but what happens is that the group of people around him motivates that person. If a person is highly satisfied with the taste of Diet coke, he may share his experience with another person and as a result the latter person might get motivated by his opinion and may end up buying diet coke. In some cases consumers have descriptive thoughts and beliefs about something. For example if a health conscious person has a belief that diet

coke is good for health, he or she is never going to go for classic coke because diet coke has maintained a clear position in the mind of that consumer. This is all about the self- beliefs and thoughts that might change with time because mostly all the self-beliefs are secondary and not the core ones. Competitors: All over world there are two soft drink giants, Coke and Pepsi. The competition between two companies has always been neck to neck. Both these companies keep on try to take lead in terms of pricing, packaging, promoting and placing. Pepsi is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. Pepsi brands are available in nearly 200 countries and territories. As we compare the products of these two competitors we come to know that Coke has two flavors in India that is coke plain and coke diet where as similar is the case with Pepsi as only these two flavors are available of Pepsi as well. So in this perspective both parties have equal strength. However competition is at its peak in terms of pricing. So many times we see that as soon as Pepsi lower downs the price of 1 liter pet bottle or disposable drink, Coke adjusts its price right away so that they may not loose their customers. Although both these brands have sufficient amount of buyers all over the world but still both the companies strive to achieve the market leader position. Coke even after 99 successful years in US still trying best to be more innovative. Coke manufacturers spent two years and 4 Million $ on research before settling on a new formula and finally came up with sweeter new coke and later on with cherry coke.

Companies make all these efforts to give more customer value and satisfaction than its competitors.

Intermediaries: Marketing intermediaries help the company to promote, sell and distribute its goods to the end users. Intermediaries include resellers, distribution firms and marketing agencies. When we talk about coke, Coke Company in India as well as abroad has recognized the importance of working with their intermediaries. For example recently Coke signed ten years deal with US based company Wendy that it will provide coke to all the fast food chains located in US. Wendy in this case is a big example of intermediary for coke. In India other than various resellers, Pepsi is one big party that is reseller of coke. Similarly there are thousands of private agencies (intermediaries) that are working for coke to distribute the product to the shopkeepers and retailers all over the country. Currently there are 46 distributors working in Patna. Coke Company uses two techniques for distribution, direct distribution and indirect distribution. In direct distribution company uses no agencies or middlemen to distribute the soft drinks but company has its own system of distribution that include Companys trucks and labor as well. The other way is indirect distribution in which company opts for various distributors that take the product from factory to the retailers and resellers. Suppliers:

Suppliers always play an important role in any companys operation. Suppliers provide resources and raw material that company requires to produce the goods and services. Coke company suppliers in India vary with respect to the raw material they provide. Following is a brief list of different suppliers of coke.

Balochistan Glass Limited provides glass bottles of all sizes that are used in bottling. Plato Bag Limited provides pet bottles with the labels. Labels are designed by the Packages Ltd. Saharan Mills Limited provides the quality sugar in hygienic packets. Vanillin Intercool India provides the machinery such as visicoolers and chest coolers for the chilled coco-cola. Dynamic Equipment and Controls (PVT) Limited provides industrial refrigeration solutions, dispensing equipments, complete bottle line and capping machines. Macro environment factors affecting coke:

Demographics: Coca cola knows its people very well. It offers different flavors & packaging according to its customers taste. It offers following sizes & every size is targeting different slots of customers.

1. SSRB (Standard size returnable bottle) 2. LRB (Large size returnable bottle)

3. NRD (Non-returnable/ Disposable bottle) 4. PET (Plastic Bottle 500 ml) 5. PET (Plastic Bottle 1.5 liter) 6. CANS (tin pack 330 ml) It targets its different sizes according to customers of different age groups & occupations. SSRB is generally targeted to young children & people going to schools & universities. It is also targeted to the people of lower class. LRB & PET 1.5 liter is usually consumed by households &I s one of its economy packs. Disposable bottles are for the on the go people. As they dont have the time to stand at a spot & drink the whole beverage. PET 500ml was introduced, on the basis of the analysis, which shows that people nowadays are in a trend to drink two 250ml coke bottles together. As Coca Cola is a company who knows its consumers very well, they introduced the 500ml Pet bottle. Business executives always expect something different for them form an organization, so Coke CANS were the answer to their expectation from coke. Different flavors always attract different types of people. They are for the people who always want to try something new.

Classic coke is the one suitable product who dont want a change in their life or who dont want to try something new. Keeping the people in view who are fitness oriented or who are health conscious, Diet coke is the solution for all their beverage problems. Vanilla Coke was introduced for the people who want a more sweetened beverage & who are looking for vanilla in everything they have. Cherry & Lime coke is targeted to the people who want something citrus. Coca Cola launches its product after they study their customers in deep detail & conclude that what their customers really wants from them. Consumers always welcome Coca Colas product, as they know that Coca Cola is the one who knows them the best. Cultural factors: When there is an event or an occasion Coca Cola is always there for its customers. Coca Cola & Cricket: Pepsi is one of the biggest official sponsors of cricket & is also the official drink of cricket. Coke is there, giving Pepsi a tough time. Coke has sponsored eight Indian cricket players. Coca Cola is targeting cricket as it is one the famous & growing all over the world.

Political factor: Political factors usually effects company working on the international level doing imports & exports. Coke usually performs its operations in the local market. Coke is not usually affected by government regulations & deregulations as no major changes occur in the food laws. Coke is a very environmental friendly product. From the caps till the labels on the PET bottles, everything is recyclable. Depreciation of currency generally has no major effects on Coke they really dont do imports& exports on large scale. They try to be local market oriented, they keep at least one company owned plant in a country. Sudden changes in political conditions in a certain country doesnt effect much on Coke, as it is a purely consumer product. Economic factors: Economic factors do affect a company in negative & positive manner. Coke is not an exception here, it is affected if there is inflation in the country & as a result coke increases its prices. Pepsi is always waiting to take a competitive edge. The increased price is a high negative effect on coke. Coke has employed more than 10000 workers in the last two years & huge amount of revenues have been collected from India The economy worldwide was disturbed by the incident of September 11th, 2001. The disposable

income of the people of India is increasing day by day & coke that was thought as a luxury good is now becoming a necessity. Social factors: Coke, a customer oriented company, always take steps for the welfare of its consumers. The recyclable products used in manufacturing coke helps save peoples environment. Coke is also helping the needy & knowledge seeking people with fewer resources by providing them books, scholarships & opportunities to work. Coke has launched a program in Gujranwala, where it provides basic education to children. Coke has also launched programs to increase awareness about the conservation of water & natural resources, climate changes, waste environment education & recyclable products. Technological factors: Technology in any field is effecting the development of that industry at a high rate. Beverage industry is also affected by the technological factors but in a positive manner. The new methods of filling the bottles, the refrigeration methods, the disposable bottles, the PET bottles all made so much changes to the Coke which is one of the giants in the beverage industry. Coke is adopting all the new technologies available. Coke is being supplied with the refrigerators, visichest coolers & many more for keeping the bottles chilled, as they claim in the subcontinent "thanda matlab Coca Cola". Coca Cola Company got the technology of dispensers so they give Coke to people that is as fresh from the fountain. Coca Cola Company has opted the

technology for the usage of PET bottles, which are also environmental friendly. Coca Cola Company opted the recycling method to keep its environment clean & also to have the soft corner in people's heart. Coca Cola Company is producing new packaging sizes with differentiated packaging with the help of new technology everyday. Demand Management: Every organization keeps a desired level of demand for its products. Demand for products change timely. At any point there may be no demand, adequate demand, irregular demand or too much demand. Regarding coke there are two different techniques to tackle with the demand management. Increase the Demand: Companies want to increase the demand for their products. Penetrating in the market by lowering the price, giving discount offers and offering special packages help companies to ultimately increase their demand of the product. Coke follows the same strategy. Company keeps on adjusting its price structure to attract more and more customers. More over special packing of coke are introduced at different occasions and festivals. This helps further in increasing the demand of this soft drink.

COMPETITIVE ENVIRONMENT

Buyers/Customers Coca-Cola has there major and large customers in the market, food street 60,000 cerates /year, MacDonalds 40,000 cerates/year and Railways who buy 50,000 cerates /year. However, these three customers being large and powerful are in an influential and bargaining position they can demand discount or others facilities like (boards sign/freezers/coolers etc.) and impose a threat to switch to their closest rival and competitor Pepsi.

Substitutes Nestle products like juices, coffee, mineral water etc. and Shezan juices are substitutes of Coke for health conscious people and other fresh juices.

Rivals/Competitors Direct Competitors The direct competitor of Coca-Cola is Pepsi and that of CCBPL is PCI (Pepsi cola international) there is always ongoing tuff competition between these two arch rivals with Pepsi leading with 54% market share and Coke gradually growing and catching up 36% market share. However on global level the situation is reverse. Both companies often engage in price cut wars, prize scheme wars and sponsorship wars to win over each other customers.

Indirect Competitor These include Nestle and Shezan juices who do not pose a threat to Coke as yet but has the potential to do so as it is exploiting the natural aspect and health issues more and more to make people conscious about physical fitness Coke has launched Diet Coke to counter the physical fitness demands. Buffering and Smoothing For beverages like Coke the buffering and smoothing policies doesnt matter and they dont apply anymore because Coke remains in demand all the year round in festivals, parties, events, meetings sports etc. Suppliers Coca-Cola has authorized suppliers and which do not pose a threat to it. Any how Coke does have a quality check procedures in its plants to ensure that they get the right kind of ingredients from suppliers. For example If market has low quality carets of bottles by chance, they call their sales mangers to lift up all the stock from the market then inquired from the quality inspector. They take strict notice of that .and don not take materials from that company again if that default is due to the ingredient contains by it. New Entrants Coca-Cola is not afraid of competing .it doesnt fear loosing its share to Maka-Cola or other new entrants. The company management believes that

new entrants provoke healthy competition, which will provide Coke with a challenge to hold on to its loyal customers.

COMPETITOR ADVANTAGES: Brand Name, Symbol, Bottle shape. Brand name, symbol and bottle shape are distinctive features of Coca-Cola which give it an edge over its competitors. (Even with out name people can easily identify Cokes, fantas, and sprites bottle from crowd.) They can not be copied or imitated by others. Diet Coke: Coca-Cola has successfully addressed to the needs of its health conscious overweight customers with the launch of diet Coke. Its competitor has yet to come up with and counter diet Coke properly. Snatching Away Customers: In the market Coke has been able to snatch large customers like Food Street, Railways, Pepsis, as well as Sponsorship from Pepsi mainly due to its superiority in the following areas. Cost: It is very economical, justifies performance,

Quality: No quality compromise, get the best all over India at any cost. Innovation: new ideas for billboards design, sponsorship, changing their slogans time to time, according to the needs of the market.

Chapter - 3

Market Segmentation & Positioning Strategy


Market segmentation: Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors: Segment size Segment growth Segment structural attractiveness and company objectives and resources. There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure. Target Marketing: This is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. After evaluating different segments, the company must now decide which and how many segments it will target, because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market.

Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments. Undifferentiated marketing. Differentiated marketing. Concentrated marketing. (Mass Marketing) (Segmented Marketing) (Segmented Marketing, small segment)

Coke segmentation strategy: Coca cola servers its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. These factors are as follows. Geographic Segmentation: Internationally: Coke segments its products country wise and region wise, here the most important thing is the taste and the quality, it varies according to the taste and the income level of the people in that country, i.e. Third world counties are given low quality taste. Climatic:

In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer.

Locally: In India the coke segments more in urban and suburban areas as compare to rural. Demographic Segmentation: Age: Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older. Family type: Coke introduces its economy pack, and thats how they focus family and groups.

A question to Amer pasha Country Manager Question:

Pepsi is targeting exactly the same market, and music is also a part of their brand image, so where does the differentiation lie in your approach? Answer: Pepsis brand personality is different, ours is about togetherness, about us. Coke will always show activities, where people get together to enjoy moments of togetherness with our brand. Our research indicates that youngsters love to get together, and it is when they are enjoying themselves, that will consume coke. For Indian youth, socializing with friends and family is core behavior in their lives. Cokes brand personality is also about togetherness. Income: Coke segments different income levels by packaging. Like for small income people it has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin. Psychographics Segmentation: All psychographics variables the social class, lifestyle, occupation, level of education and personality, coke segments everyone, but again its there packaging which is different for different consumers.

Benefits Sought: Sometimes, for the promotion strategy of coke, they introduce prizes in the top cover. So they segment people by benefit sought, i.e. by giving them prizes. Positioning

T
Benefits

he way the product is defined by consumers on important attributes, the place the product occupies in consumer minds relative to competing products. Price More Same Less

More

Same

Less

Here if we talk about more price and more benefits, we can discuss Pepsi and Coke. As both are the market leaders and 90% market share of India beverage industry is secure by them & the rest 10% is secure by the rest. And we can also take Pepsi and Coke as challenger for each other as both of them provides more for same, more for less & same for less. As they are giving their customers more benefits for same price and also more benefits for less price with respect to different packaging sizes. Others colas like Mountain Dew are offering same for same price and same benefits for more price. They are using followers strategy, as they follow the other market leaders and giving their customers same benefits for same price. Others colas like that bottles (local colas) are offering less benefits for same price and less benefits for less price. As they have no existence in market and their products have no position or we can say very badly positioned in consumer minds.

PRODUCT

STRATEGY

Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

Levels of coke as a product Core product: Core benefit is that it fulfills the thirst. Actual product: Design: Pet bottles, returnable glass bottles, economy packs.

Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in India. Product Classifications: Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently. Individual product decisions
Brand

Existin

Existing Line extension Multi-Branding


Branding:

New Brand extension New brands

Produc t

g New

a) Brand Equity: As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal. b) Brand Strategy: The following is the brand strategy of Coke Line Extension: Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke

introduces new flavors and package size, it will be considered as line extension. Brand Extension: Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. This was an example of brand extension. Multi-Branding: It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta. Diversification: It means introducing new product with the new brand name. It means diversification but this is something Coca-Cola has not adopted for as yet.

Product Line Decisions:

Product Line Length: It means the number of products that company is offering. For example Coke, Diet Coke, Fanta , Sprite. Product Line Filling: Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available and that is classic coke but with the passage of time company filled the product line by adding diet coke, diet lemon etc.