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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
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 CocaCola 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 objectives this study is also conducted to understand the
Customer preferences towards various Coca-Cola products.


Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly
400 beverage brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage
products comprises of bottled and canned soft drinks as well as concentrates, syrups and notready-to-drink powder products. In addition to this, it also produces and markets sports
drinks, tea and coffee. The Coca- Cola Company began building its global network in the
1920s. Now operating in more than 200 countries and producing nearly 400 brands, the CocaCola system has successfully applied a simple formula on a global scale: Provide a moment
of refreshment for a small amount of money- a billion times a day.

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, 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 worlds
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, 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.




Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)
are products that have a quick turnover and relatively low cost. 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. 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. As a result, most
of the companies were forced to revamp their product, marketing, distribution and customer
service strategies to strengthen their position in the market.


In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.

The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages.

Natural and Synthetic beverages.
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.



Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.

Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
Productivity: Be a highly effective, lean and fast-moving organization.


In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An
increased consumer preference for healthier drinks has resulted in slowing growth rates for

sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KOs sales.
KOs profits are also vulnerable to the volatile costs for the raw materials used to make drinks
- such as the corn syrup used as a sweetener, the aluminium used in cans, and the plastic used
in bottles. Finally, Coca-Cola earns approximately 75% of revenue from international sales,
exposing it to currency fluctuations, which are particularly adverse with a stronger U.S.
Dollar (USD).
Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is
growing quickly, the traditional CSD market is still large in terms of both revenues and
volume and highly lucrative. The size and variety of KOs offerings in the CSD category,
coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to
maintain its share of this important market. KO has also responded to consumers changing
tastes with new, non-CSD product launches and acquisitions such as that of Glaceau in 2007.
Strong international growth has also more than offset a weak domestic market.
In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice
company, OAO Nidan Juices. The company is 75% owned by a private equity firm in London
and 25% by its Russian founders and controls 14.5% of the Russian juice market. If
successful, the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's 30%
market share.
In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit
smoothen maker. Last year the company bought an 18% share of the company for more than
$45 million, and recent purchases of additional shares increased Coke's stake to 58%.
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 deal covers the next 20 years with an option to renew for
an additional 20 years.


The Global Economic Recession Threatens Overall Demand:
In 2008 and 2009, the global economy has fallen into a recession. Not just the United States
but countries from all over the world have felt the impacts of the 2008 Financial Crisis. This
may be a problem for Coke, which derives approximately 75% of its sales from outside North

New Aversion to Soda Threatens Main Business:

74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it
particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been
negatively affected by concerns about health and wellness. This is true across most of KO's
markets. 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.
Though KO has been somewhat slow to respond to this shift in consumer preferences, it has
recently begun to increase its development of both diet CSD and non-CSD beverages. KO is
faced with the task of balancing the risk of new innovations with the low growth rates of
established brands, a predicament for manufactures throughout the beverage industry.

Integrated Bottler Strategy Increases Flexibility:

After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging
beverage maker, one of the first areas that he targeted for improvement was KO's frayed
relations with its extensive network of bottlers. Isdell sees these agreements as another way
of taking advantage of the rapidly growing non-CSD market.

Bottled Water Falling Out of Favour:

In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is emblematic
of the bottled water industry as a whole. In August 2009, the Wall Street Journal reported that
sales of bottled water had fallen for the first time in five years. 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.

Dollar Affects International Performance:

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although
the company is based in the US, KO derives about 75% of its operating income from outside
United States. Thus, if the dollar strengthens (as it did in the second half of 2008 and 2009), it
has a negative effect on KO's earnings. Coca-Cola executives expect currency fluctuations to

adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by high

Commodity Cost Fluctuations Affect Margins:

The Coca-Cola Companys profitability can be affected both directly and indirectly by the
costs of various production inputs. KO itself is responsible for purchasing the raw materials
used to make its concentrates and syrups. Variations in the prices for these goods can affect
the companys total cost of production as well as its profit margins. Changes in the
production costs of bottlers can also impact KOs profitability, though in a more indirect way.
If the raw materials necessary for bottling become more expensive, the bottler may be forced
to drastically raise prices to compensate.
uch a price increase would likely hurt KO, given the competitive nature of the non-alcoholic
beverage industry, and provide a possible incentive for consumers to switch to other
companies beverages.
Aluminium, corn, and PET resin are three examples of such production goods used by
bottlers that could have significant bearing on the Coca-Cola Companys profit margins. In
2007, the prices of these commodities rose drastically with general commodities bubble and
dramatically pressured margins. They receded in 2008, but the possibility of another
significant rise in Commodities represents a constant threat to profits.



PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. 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.
Coca-Cola beverage, 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
fast growing economy.

Political Analysis:
Political factors are how far a government intervenes in the operations of the company. The
political factors may include tax policy, trade restrictions, environmental policy, laws
imposed on the recruiting labours, amount of permitted goods by the government and the
service provided by the government.
Moreover, 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. Also the situations like the unsure
conditions prevailing in Iraq and escalation of the terrorist activities in these areas could
affect the international market of our product. It creates an inability for the company to
penetrate in the markets of such countries.

Economic Factors:

The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates,
wage rates and unemployment in the country.
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. This is a threat in the
external environment faced by the company. 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.

Social Factors:
Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing society. The company
adapts various management strategies to adapt to these social trends.
Population growth rate and the age distribution is another social factor to be considered. It is
very important because non-alcoholic markets have most of its share from the children and
youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country
becomes important for the success of the product in a country.

Technological Factors:
Technology plays a varied role in the soft drinks industry. The manufacturing and distribution
of the products is relatively a Low-Tech business, although the creation of a new product with
the perfect blend and taste is a science (an art in itself).
The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines all over the world. In
products it led to the development of new products like Cherry Coke, Diet Coke etc. The
technical advancement in the bottling industries include, introduction of recyclable and non
refillable bottles, introduction of cans which are trendy, stylish and popular among the

Legal Factors

The legal factors include discrimination law, customer law, antitrust law, employment law
and health and safety law. In Coca-Cola the business is subjected to various laws and
regulation in the numerous countries in which they do the business, the laws include
competition, product safety, advertising and labelling, container deposits, environment
protection, labour practices.
Various jurisdictions may adopt significant regulations in the additional product labelling and
warning of certain chemical content or perceived health consequences. 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, packaging and distributing in various countries.
It must adhere to the norms and market the product accordingly. Usage of renewable plastic
in the PET bottles is followed by the company strictly.




Coca-Cola has strong brand recognition across the globe. The company has a leading brand
value and a strong brand portfolio. Coca-Cola ranks well ahead of its close competitor Pepsi
which has a ranking of 22 having a brand value of $12,690 million Furthermore; Coca-Cola
owns a large portfolio of product brands. The company owns four of the top five soft drink
brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.
Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry
Coke and Coke with Lemon. Over the years, the company has made large investments in
brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The
companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate
new markets and consolidate existing ones.


With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is
the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and
syrups in the world. The companys operations are supported by a strong infrastructure across
the world. Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup
manufacturing plants located throughout the world.
In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and
canning plants located outside the US. The company also owns bottled water production and
still beverage facilities as well as a facility that manufactures juice concentrates. The
companys large scale of operation allows it to feed upcoming markets with relative ease and
enhances its revenue generation capacity.


Coca-Colas revenues recorded a double digit growth, in three operating segments. These
three segments are Latin America, East, South Asia, and Pacific Rim and Bottling

investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005.
During the same period, revenues from East, South Asia, and Pacific Rim grew by 10.6%
while revenues from the bottling investments segment by 19.9%.
Together, the three segments of Latin America, East, South Asia and Pacific Rim
bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robust
revenues growth rates in these segments contributed to top-line growth for Coca-Cola during

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. There
have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle
East and U.S. foreign policy. The company received negative publicity in India during
September 2006.The Company was accused by the Centre for Science and Environment
(CSE) of selling products containing pesticide residues. Coca-Cola products sold in and
around the Indian national capital region contained a hazardous pesticide residue.


Coca-Colas performance in North America was far from robust. North America is CocaColas core market generating about 30% of total revenues during fiscal 2006. Therefore, a
strong performance in North America is important for the company.
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. Moreover,
the company also expects performance in North America to be weak during 2007. Sluggish

performance in North America could impact the companys future growth prospects and
prevent Coca-Cola from recording a more robust top-line growth.


The companys cash flow from operating activities declined during fiscal 2006. Cash flows
from operating activities decreased 7% in 2006 compared to 2005. Net cash provided by
operating activities reached $5,957 million in 2006, from $6,423 million in 2005. CocaColas 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.
The decrease was also the result of certain marketing accruals recorded in 2005.Decline in
cash from operating activities reduces availability of funds for the companys investing and
financing activities, which, in turn, increases the companys exposure to debt markets and
fluctuating interest rates.

During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently,
reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling
shareholding in KBL, its bottling joint venture with the Kerry Group, in Hong Kong.
The acquisition extended Coca-Colas control over manufacturing and distribution joint
ventures in nine Chinese provinces.


Bottled water is one of the fastest-growing segments in the worlds food and beverage market
owing to increasing health concerns. The market for bottled water in the US generated
revenues of about $15.6 billion in 2006.

Market consumption volumes were estimated to be 30 billion litres in 2006. The market's
consumption volume is expected to rise to 38.6 billion units by the end of 2010. This
represents a CAGR of 6.9% during 2005-2010.


Hispanics are growing rapidly both in number and economic power. As a result, they have
become more important to marketers than ever before. In 2006, about 11.6 million US
households were estimated to be Hispanic. This translates into a Hispanic population of about
42 million.
Coca-Cola has extensive operations and an extensive product portfolio in the US. The
company can benefit from an expanding Hispanic population in the US, which would
translate into higher consumption of Coca-Cola products and higher revenues for the

Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages
industry. The company faces intense competition in various markets from regional as well as
global players. Also, the company faces competition from various non-alcoholic sparkling
beverages including juices and nectars and fruit drinks. Competitive factors impacting the
companys business include pricing, advertising, sales promotion programs, product
innovation, and brand and trademark development and protection. Intense competition could
impact Coca-Colas market share and revenue growth rates.


Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in
whom it doesnt have any ownership interest or in which it has no controlling ownership
interest. In 2006, 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.
As independent companies, its bottling partners, some of whom are publicly traded

companies, make their own business decisions that may not always be in line with the
companys interests. In addition, many of its bottling partners have the right to manufacture
or distribute their own products or certain products of other beverage companies.
Such dependence on third parties is a weak link in Coca-Colas operations and increases the
companys business risks.


US consumers have started to look for greater variety in their drinks and are becoming
increasingly health conscious. This has led to a decrease in the consumption of carbonated
and other sweetened beverages in the US. The US carbonated soft drinks market generated
total revenues of $63.9 billion in 2005, this representing a compound annual growth rate
(CAGR) of only 0.2% for the five-year period spanning 2001-2005.
Coca-Colas revenues could be adversely affected by a slowdown in the US carbonated
beverage market.

Coca-Cola invested heavily in India for the first five years, which got them credit of being
one of the biggest investor in the country; however, their sales figures were not so impressive.
Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever
that reducing their will result in more turnover, hence leading to profit. They launched an
extensive market research in India. They ascertained that in India 3 As must be applied;
Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with
local drinks such as Nimbu Pani, Narial Pani, and Lassi etc. and reached to a
conclusion that competitive pricing was unavoidable. Since then they introduced a 200 ml
glass bottle for Rs.5.

Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products.
In various regions they tried portraying coca cola products with different regional food
products. One of the most famous ad campaigns in India was Thanda Matlab Coca-Cola;
they featured the same quote with different regional entities.
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 Countrys remotest areas.



In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated
its departure. 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, even in remote
and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India Cricket, movies, music & food. Coca-Colas advertising campaigns Jo Chaho Ho
Jaye & Life Ho Toh Aise were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign Thanda Matlab Coca-Cola which sky
rocketed the brand to make it Indias favourite soft drink brand.



200ml, 300ml,

500ml, 1.5L, 2L,

330 ml


500ml, 1000ml

2.25L, 500ml, 100ml


Table - 1.0

LIMCA:Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
lemony bite combined with the single minded proposition of the brand as the provider of
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu +
Jaise hence Lime Sa, Limca has lived up to its promises of refreshment and has been the
original thirst choice of millions of customers for over 3 decades.



200ml, 300ml,

500ml, 1.5L, 2L,

330 ml


500ml, 1000ml

2.25L, 500ml, 100ml


Table - 1.1

THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up
is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.
This brand clearly seeks to separate the men from the boys.



200ml, 300ml,

500ml, 1.5L, 2L,

330 ml


500ml, 1000ml

2.25L, 500ml,


Table - 1.2

SPRITE:Sprite a global leader in the lemon lime category is the second largest sparkling beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a
true teen icon.





200ml, 300ml

500ml, 600ml,

330 ml


1250ml, 1500ml,
2000ml, 2250ml
Table 1.3

FANTA:Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as The Fun Catalyst. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the moment. This positive
imagery is associated with happy, cheerful and special times with friends.

200ml, 300ml




500ml, 1.5L, 2L,

330 ml


2.25L, 500ml, 100ml

Table 1.4

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, forming a frozen concentrate that when
reconstitute created orange juice. They branded it Minute Maid a name connoting the
convenience and the ease of preparation. Minute Maid thus moved from a powdered
concentrate to the first ever orange juice from concentrate.
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.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA:Maaza was introduced in late 1970s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lovers first choice.

200ml, 250ml

250ml, 600ml, 1.2L


Table 1.5

KINLEY:The importance of water can never be understated, Particularly in a nation such as India
where water governs the lives of the millions, be it as a part of everyday ritual or as the
monsoon which gives life to the sub continent. Kinley water comes with the assurance of
safety from the Coca-Cola Company.
Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is
available at Quick-Service Restaurants, Airports, and Cinemas and in Corporate across all
major metros in India.

Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino,

Hot Chocolate, Cardamon Tea.


Ice Teas, Cold Coffee.

Table 1.6


PRODUCT:Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Coke positioned Kinley as natural water
with the tag line Bhoond Bhoond Mein Vishwas (Trust in each drop of water).
In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers
were brought into CCIs fold. This acquisition added Crush, Canada Dry and Sport Cola to
CCIs product line. This meant CCI had three orange, clear lime and cola drinks each in its

PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like
India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond
the reach of many Indian customers To make it affordable, Coke introduced Kinley in 200ml
pouches for Re. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra,
priced at Rs 3 per cup in testing marketing exercise conducted in mid 2002. In 2002 Kinley
with 35% market share had become the leader in the retail PDW segment and was
contributing 20% of CCIs revenues.

PLACE:Coke pushed down responsibilities from corporate headquarters to the local business units.
The aim was to effectively align CCI's corporate resources, support systems and culture to
leverage the local capabilities. Each of the six regions had on an average six bottling plants.
Each plant was headed by an Area General Manager (AGM) and held profit center
responsibility for a business territory. He reported to the RGM as well as the head of bottling
at the head quarters.

PROMOTION:In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing

campaign positioned Coca-Cola as an international brand and did not emphasize local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. The bottlers taken over by Coke also had problems adjusting to a new work culture. They
argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and
asked CCI to take corrective action.
Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen
by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well
known personalities popular to this age group.
In 2000, Coke wrote off investments in India, amounting to $400 Mn. The revised value of
CCI's assets after the charge was $300 mn.
. It promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and
Fanta in Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North


PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. 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.

Political Factors:
Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than
revealing its formula to the government. They re-entered the country in 1993
Thus, Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to
Lehar Pepsi). However, the most controversial, and by far, 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. Due to the lack of consistency in the legal aspects, more importance was
being given to lobbying the politicians.

Recent Scenario
During recent times, Coca Cola India has faced its fair share of problems. On August 5 th
2003, The Centre for Science and Environment (CSE), 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". According to tests conducted by the Pollution
Monitoring Laboratory (PML) of the CSE from April to August, 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.
. However, there are certain positives as well, with a 22 percent increase in its unit case
volume last quarter.

Economic Analysis:
The Indian economy sustained the global economic slowdown in the previous year and has
shown a tremendous economic growth. It showed 8.6% of growth in the last quarter of 200910 as compared to 5.8% same time in the previous year. It has emerged as an attractive
economy to invest in as many opportunities has been recognized.

Economic growth
India is ranked second in economic growth, just behind China. Analysts have said that India
will be the third biggest economy of the world in the coming year behind China and USA.
With economic growth many opportunities have been seen, which have attracted many
foreign investor to the company.
Coca cola India returned to the country in 1993, despite few problems in the start they have
emerged as the king of soft drink industry in India. The strong economic growth of India has
resulted in coca cola to invest heavily in sales and distributive channels. It has introduced two
new products, Nimbu Fresh and an energy drink Burn.

Coca cola registered 22% growth in their unit case volume in the second quarter (April-June).
It is the 16th consecutive quarter of such growth out of which 13 are double digit. Coca cola
Indias growth is in contrast to its overall performance, the beverage king reported a growth
of just 5% (worldwide) in the same quarter.

Inflationary effects
Inflation is one of the main problems that Indian economy has been facing for a year now.
Rising prices in the food and other products doesnt only effect the consumers it also has an
adverse effect on a company. The inflation rate for the year 2009 was recorded to be 11.49%.
As prices have gone up in India for various products, especially oil, there has been
uncertainty in decision making of almost every company. Coca cola India has also been
affected by the same; it has been forced to think about their input costs, as they have been
rising due to inflation. Their expenditure has been rising, with more costs in salaries,
distribution channels and other operating costs. Beverage industry being price competitive
market, they have not revised their product prices.

Exchange rate
The exchange rate of rupee to US Dollar has been stable but in the previous months the rate
has had a tumultuous period. Exchange rate determines at what price will the company export
its products and import whatever is required by it. The previous year, the rate of rupee to
USD touched 44, on an average it has been around 47, so the exports earned less and the
imports cost more. Therefore, coca cola India had to bear some low profitable times.
However, in the present scenario rates have reached a stable level and exports are on an
increasing trend.

Technological Analysis:
Coca-Cola has started operations of its R&D facility in India, with the view of localizing its
product portfolio. The major focus would be on non carbonated drinks and flavours. The
companys R&D team has already rolled out drinks such as Maaza aam panna and also a
Maaza mango milk drink, and is exploring options to enter new categories in India such as
juices in localised flavours, energy drinks, sports drinks and flavoured water. These initiatives
are being taken by the company to further expand their product portfolio.

With the increasing importance of 360 degree media tools and overall ad spend on social
media sets likely to grow by almost 44%, Coca-Cola has increased ad spend on the internet.
Case in point is the recent 2009 Sprite campaign, which was first launched on the internet.

Environmental Analysis:
Coca Cola has earned a title of environment friendly company and Coca Cola India too has
followed in the footsteps. Coca Cola Indias Corporate Social Responsibility (CSR), is an
initiative that prioritizes many social and environmental issues; one of them being water
conservation. They support many community based rainwater harvesting projects and help
lending conservation education.
The company has made sure that the following ideas are considered during their operations:
1. Environmental due diligence before acquiring land
2. Environmental impact assessment before commencing project
3. Ground water and environment survey before selecting the site
4. Ban on purchasing CFC emitting refrigerating equipment
5. Waste water treatment facilities
6. Compliance with all regulatory environmental requirements
7. Energy conservation programs
But later it was found that BIS had stated that pesticides should not be present or it should not
exceed 0.001 part per million. Further, the health ministry of India admitted that there were
lapses in PFA regarding carbonated drinks.


Legal Analysis:
As the Indian consumer is getting more educated, the government is also paying special
attention to consumer laws. In the past, 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, strategies
so as to satisfy their consumers, and employees. Keeping in mind the consumer laws,
employment laws, antitrust law, discrimination laws etc. a business should plan out

Consumer Laws
In the present scenario, consumer is the king, if a product is defective, not meeting the stated
standards a consumer can complain against the manufacturer. Complaining and getting the
verdict the court has made very fast and efficient as government of India has installed new
consumers courts. Their main job is to see that the consumer benefits are being met or not.
When producing their beverages, Coca Cola India has to make sure that they have written
price, manufacturing date, expiry date, batch no, nutritional facts are written on the packed

Employment Laws
Ministry of Labour makes the laws for proper employment in the country. They have
stipulated norms on employing people from the country and getting expatriates in the
company as well. India has strict laws against employing child labour. Being a male
dominated society, the ministry has made sure that female employees are treated with respect
and given equal importance at the work place. Every field of work has got its own wage,
these are to meet the norms and laws set by the labour ministry. When employing anyone,
coca cola India cannot discriminate on social, regional or any racists basis. If it is found that
the company has been violating the law, it has to face strict action and fines.

Health and safety laws

As coca cola produces a product that is consumed by the consumer as a food item, there are
laws that the company must abide by when producing it. Ministry of Food Processing
Industries makes and oversees the laws and norms for the food processing industries.
The Indian Parliament has recently passed the Food Safety and Standards Act, 2006 that
overrides all other food related laws.
It will specifically repeal eight laws:

The Prevention of Food Adulteration Act, 1954.

The Fruit Products Order, 1955.

The Meat Food Products Order, 1973.

The Vegetable Oil Products (Control) Order, 1947.

The Edible Oils Packaging (Regulation) Order, 1998.

The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967.

The Milk and Milk Products Order, 1992.

Essential Commodities Act, 1955 relating to food.

From now on, the act establishes a regulatory body, the Food Safety and Standards Authority
of India. Anything that coca cola makes, have to make accordingly to the laws. They have to
check the weight, volume and ingredients of the product. The export or the import of the
products by the company has to meet the quality standards stipulated by the law.







The Company has a strong and reliable distribution network. The network is formed on the
basis of the time of consumption and the amount of sale yielded by a particular customer in
one transaction. It has a distribution network consisting of a number of efficient salesmen,
700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of
distribution, 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
Countrys remotest areas.


Coke has its history of about more than a century and this prolonged sustenance has
definitely added to the brand image in the minds of the consumers and to its wallet. The
products produced and marketed by Coca-Cola India have a strong brand image.
Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand
name of Coca-Cola Company as a whole. Coca Cola India for the first time has come out
with corporate campaign in India targeting its stakeholders. 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
The new campaign is a part of a complete restructuring exercise in the Indian arm of this
global change. Coca Cola recently announced its new corporate strategy called the 5 Pillar"
strategy. The company has identified the 5 pillars as



In light of the companys Affordability Strategy, Coca-Cola went about bringing a cost-focus
culture in the company. This included procurement Efficiencies through focus on key input
materials, trade discipline and control and proactive tax management through tax incentives,
excise duty reduction and creating marketing companies. These measures have reduced the
costs of operations and increased profit margins.

In India, there exists a major controversy concerning pesticides and other harmful chemicals
in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment
(CSE), a non- governmental organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola,

contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can
contribute to cancer and a breakdown of the immune system.

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;
this includes a 42 per cent share of the cola market.

Other products account for 16 per cent market share, chiefly led by Limca. The company
appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover
one lakh outlets for the coming summer season and this also covered 3,500 new villages. In
Bangalore, Coca-Cola amounts for 74% of the beverage market.

As India is developing at a fast pace, the per capita income has increased over the years and a
majority of the people are educated, the export levels have gone high. People understand
trade to a large extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages manufactured within
the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting
the sales of the Company.


The tax system in India is accompanied by a variety of regulations at each stage on the
consequence from production to consumption. When a license is issued, the production
capacity is mentioned on the license and every time the production capacity needs to be
increased, the license poses a problem. Renewing or updating a license every now and then is
difficult. Therefore, this can limit the growth of the Company and pose problems.
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; large number of daily wage earners, acute
dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and
festivals and special occasions; poor roads; power problems; and inaccessibility to
conventional advertising media. All these problems might lead to a slowdown in the demand
for the companys products.

Inspire creativity, passion, optimism and fun.

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a
drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin
Mariani, a European cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded
by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first
sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886.
By 1888, three versions of Coca-Cola sold by three separate businesses were on the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an
ongoing addiction to morphine, Pemberton sold the rights a second time to four more
businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile,

Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910 Candler had the earliest records of the company burned, further
obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status
of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after
the company made minor changes in the sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first
appeared in 1955. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back
to "Coca-Cola." The word "Classic" was truncated because "New Coke" was no longer in
production, eliminating the need to differentiate between the two. The formula remained
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce
bottles sold in parts of the south-eastern United States. The change is part of a larger strategy to
rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices of
Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.



The main objective of the project is to analyze and study in efficient way the current position
of Coca- Cola Company.

To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally. This
would help us identify areas of potential growth.
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 CocaCola and its competitors.
To understand the reasons behind the purchase of Coca-Cola products.

SCOPE OF THE STUDY:This study basically tries to discover the current position of Coca-cola in the market. It also
tries to discover the preferences of the customers when posed with a choice between CocaCola and Pepsi. It is primarily directed to the general public but was done only in New
Delhi, Noida and Greater Noida

A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:

Exploratory Research.
Descriptive Research.
Casual Research.

1. Exploratory Research:The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.

2. Descriptive Research:The objective of descriptive research is to describe things, such as the market potential for
a product or the demographics and attitudes of consumers who buy the product.

3. Casual Research:-

The objective of casual research is to test hypothesis about casual and effect relationships.

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. Through this study we
are trying to analyze the various factors that may be responsible for the preference of CocaCola products.

4. Casual Research:The objective of casual research is to test hypothesis about casual and effect relationships.
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. Through this study we
are trying to analyze the various factors that may be responsible for the preference of CocaCola products.


Respondents based on age group

Number of respondents


Respondents based on gender




Fig 2.5


From Fig 2.4, we can comprehend that 90% of total respondents belong to the age group of 2030. This is because most of the consumers that prefer or consume Coca-Cola products belong
to this age group. About 6% belong to age group below 20 and 3% belong to age group of 3040.Form Fig 2.5, we come to know that the gender ratio of the total respondents is almost 2:1
(male: female).

Frequency of soft drink consumption


Fig 2.6

Weekly expenditure of coca-cola products (INR)





Above 200

Fig 2.7


From Fig 2.6, we interpret that about 48% of the total respondents consume soft drinks rarely
or once a week. About 35% respondents consume soft drinks twice or thrice a week and only
18% consumes soft drinks every day.
From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-100 a week on
Coca-Cola products, which is very low as compared to the global scenario. This creates a
potential growth market for Coca-Cola India. About 12% spends from 100-150 a week & 7%
spend above 150.



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-Colas 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.
A strong watch should be kept on distributors so that the goodwill of the BRAND
doesnt get affected.

Though there were certain limitations in the study that was conducted. The sample allowed for
some conclusions to be drawn on the basis of analysis that was done on the data collected.
The data has clearly indicated that Coca-Cola products are more popular than the products of
Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and
AVAILABILITY, thus it should focus on good taste so that it can capture the major part of
the market. The study also indicated that the consumers are satisfied with the Coca-Cola
products and purchase them without any specific occasions.
In todays 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 todays scenario, so you need to be always on your toes.

Marketing Management Kotler Philip.
Research Methodology Kothari.


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

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?
a) Coca-Cola
b) Pepsi
c) Other products of Coca-Cola
d) Other products of Pepsi
e) 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
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!