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IMPACT OF BRAND EXTENSION ON BRAND PERSONALITY OF

COCA COLA

Submitted By:
SAKSHI AGARWAL

MBA (M&S) 3RD SEMMESTER

A7002216001

SPECILIZATION: (MARKETING)

Under the Guidance of:

Industry guide Faculty guide

Mr Aakash Jha Prof RP Gupta


RESEARCH ANALYST AMITY BUSINESS SCHOOL

RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE


REQUIREMENT OF THE AWARD OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION (2016-18)

AMITY UNIVERSITY UTTAR PRADESH

LUCKNOW
DECLARATION
Title of project report IMPACT OF BRAND EXTENTION ON BRAND PERSNALITY
OF COCOCOLA understand what plagiarism is and am aware of the Universitys policy in
this regard

I declare that:-

1. The work submitted by me in partial fulfillment of the requirement for the award of degree
MBA (M&S) assessment in this Project is my own; It has not previously been presented for
another assessment.

2. I declare that this Project is my Original Work. Wherever work from other source has
been used, all debts(for words data, arguments and ideas) have been appropriately
acknowledged and referenced in accordance with the requirements of NTCC Regulations
and Guidelines.

3. I have not used work previously produced by another student or any other person to
submit it as my own .

4. I have not permitted, and will not permit, anybody to copy my work with the purpose of
passing it off as his or her own work.

5. The work conforms to the guidelines for layout, content and style as set out in the
Regulations and Guidelines.

Date: ------------------------- SAKSHI AGARWAL

A7002216001

MBA (M&S)
FACULTY CERTIFICATE

Forwarded here with NTCC report on IMPACT OF BRAND EXTENSION ON


BRAND PERSONALITY OF COCA COLA submitted by SAKSHI AGARWAL.
Enrolment no.-A7002216001, Student of MASTER OF BUSINESS ADMINISTRATION
3rd semester (2016-18).

This project work has been done in partial fulfilment of the requirement for the award of the
degree of MASTER OF BUSINESS ADMINISTRATION from AMITY UNIVERSITY
UTTAR PRADESH, LUCKNOW CAMPUS.

Dr. R. P. GUPTA

Professor

Amity University Uttar Pradesh

Lucknow Campus
STUDENTS CERTIFICATE

Certified that this report is prepared based on NTCC undertaken by me in IMPACT OF


BRAND EXTENSION ON BRAND PERSONALITY OF COCA COLA, under the
Guidance of Dr. R. P. GUPTA in partial fulfilment of the requirement for award of degree of
MASTER OF BUSINESS ADMINISTRATION 3rd SEM from Amity University, Uttar
Pradesh.

SAKSHI AGARWAL Dr. R.P. GUPTA Professor Harsh Vardhan

student Professor Director ABS

Date.- 02/08/2017
ACKNOWLEDGEMENT

This project is a result of dedicated effort. It gives me an immense pleasure to


prepare this project report on IMPACT OF BRAND EXTENSION ON
BRAND PERSONALITY OF COCA COLA.

I would like to thank our project guide, Dr. R.P. GUPTA for consultative help
and constructive suggestion on the matter in this project. I would like to thank
my Industry guide AAKASH KUMAR JHA and my brother VATSAL
AGARWAL & parents who have helped me in making this project a successful
one.

SAKSHI AGARWAL
TABLE OF CONTENTS

Chapter I......................................................................................................6-39
1. Introduction....................................................................................................................6
2. Introduction of the report...............................................................................................7
3. Objectives.....................................................................................................................36
4. Strategy.........................................................................................................................36
5. Limitations...................................................................................................................39

Chapter II...................................................................................................40-49
1. Review of Literature

Chapter III.................................................................................................50-55
1. Company Profile

Chapter IV................................................................................................55

1.Research mythology

Chapter V...................................................................................................56-58

1. Data analysis and interpretation.

Chapter VI.................................................................................................59-63
1. Findings........................................................................................................................59
2. Conclusions and...........................................................................................................63
3. Recommendations........................................................................................................63

BIBLOGRAOHY............................................................. .............................64.

Annexure -1.......................................................................................................65
CHAPTER I
INTRODUCTION

INTRODUCTION TO COCA COLA COMPANY


Coca-Cola (often referred to simply as Coke) is a carbonated soft drink produced by the
Coca-Cola Company. Originally intended as a patent medicine, it was invented in the late
19th century by John Pemberton and was bought out by businessman Asa Griggs Candler,
whose marketing tactics led Coca-Cola to its dominance of the world soft-drink market
throughout the 20th century. The drink's name refers to two of its original ingredients, which
were KOLA NUTS (a source of caffeine) and COCA LEAVES. The current formula of Coca-
Cola remains a trade secret, although a variety of reported recipes and experimental
recreations have been published.
The Coca-Cola Company produces a concentrate, which is then sold to licensed Coca-Cola
bottlers throughout the world. The bottlers, who hold exclusive territory contracts with the
company, produce the finished product in cans and bottles from the concentrate, in
combination with filtered water and sweeteners. A typical 12-US-fluid-ounce (350 ml) can
contain 38 grammes (1.3 oz) of sugar (usually in the form of high fructose corn syrup). The
bottlers then sell, distribute, and merchandise Coca-Cola to retail stores, restaurants,
and vending machines throughout the world. The Coca-Cola Company also sells concentrate
for soda fountains of major restaurants and food service distributors.
The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name.
The most common of these is Diet Coke, along with others including Caffeine-Free Coca-
Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and
special versions with lemon, lime, and coffee. Based on Interbrand's "best global brand"
study of 2015, Coca-Cola was the world's third most valuable brand. In 2013, Coke products
were sold in over 200 countries worldwide, with consumers owning more than 1.8 billion
company beverage servings each d
Introduction of the report
Towards Better Transparency in Reporting
We continue our work toward increasing transparency in sustainability reporting. In this report,
where we can, we report on the Coca-Cola system, not just The Coca-Cola Company. We believe this
provides a broader view about the impacts brand extension on brand personality.Our desire to
concentrate our efforts on our most significant Brand extension impacts is also reflected in our new
2020 goals for more sustainable management of water, energy, and packaging use. These goals apply
to the Coca-Cola system, rather than solely the Company. In this report, we continue to report
progress against the goals in addition to our new 2020 commitments. Going forward, we will focus
on our performance against our 2020 goals. We are also working toward expanding our sustainability
reporting on topics that are most important to our Company and our stakeholders. We include an
extensive discussion of potential risks and challenges to our business beginning on page of our 2017-
07-21 Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange
Commission (SEC). In this report, we have increased our discussion of stakeholder engagement, to be
more transparent on the numerous stakeholder engagement sessions we hold across the globe every
year regarding sustainability and other issues impacting our business. This engagement plays an
important role in our efforts to further enhance our sustainability reporting. We strive to focus our
reporting and our efforts on our most material issues, as can be seen in our 2020 goals. However, we
recognize that the next step in improving our reporting on material sustainability topics is to conduct
and provide expanded disclosure on a more formal materiality assessment in conformance with
Global Reporting Initiative. Additionally, we are working toward continuously improving our data and
data collection processes for our non-financial performance indicators. For the first time this year, we
engaged our independent accountants, Ernst & Young LLP, a registered public accounting firm, to
provide external review-level assurance on the following sustainability indicators for the 2017
reporting year: water use ratio, Plant Bottle packaging, lost time incident rate and front-of-pack
labelling. We expect to expand assurance over time. Our sustainability report is one way we
communicate progress against our sustainability goals and key performance indicators. We also
encourage you to read our Annual Report and visit Coca-Cola Journey to learn more about its impact
on the Coca Cola Company and its efforts.
IMPACT OF BRAND EXTENSION ON BRAND PERSONALITY OF
COCA COLO

INTRODUCTION TO BRAND EXTENTION


The main concept of brand extension is derived from the situation arises when the firm uses
established brand name to introduce a new product combined with the existing product then it
is considered as sub-brand. An existing brand which gives birth to the new product then it is
called as parent brand. Parent brand is associated with multiple products through brand
extension then it is considered as a family brand extension. It is also called as brand
stretching.

WHY BRAND EXTENTION


It increases brand awareness
Innovation in product to excel customer expectation
To increase the profitability of the company by offering multiple product categories.
A technique to reinforce the brand and acquiring new customer creating a thrill.
Grasping brand value by offering new complementary product.
ADVANTAGES OF BRAND EXTENTION
Increasing the possibility of obtaining distribution and trial
Shuffle cost of developing new brand
Cut down the cost of introduction and follow-up plan
Efficiency in promotional expenditure
Permitting for packaging and labelling efficiency
Allow consequential extension
Intensify parent brand image
Bring new customer into brand Franchise and increase Market Coverage
Reduce risk perceived by customer
Revitalised the brand

DISADVANTAGES OF BRAND EXTENTION


Can succeed but aggrieve the image of the parent brand
Can fail and aggrieve parent brand image
Can confuse or frustrate customers
Can concur retailer hesitance
Can cause accompany to forgo the chance to develop new brand
There is generally low rate of success and high rate of failure in brand extension
Can be successful but Cannibalise of parent brand
Can cause the company to forgo the chance to develop a new brand.

REASON OF FAILURE OF BRAND EXTENTION


Brand extension may fail when it is very little or no brand awareness among the target
customer may due to low advertisement and another promotional tool
Poor quality of product which is not capable enough to cater customer needs
When the firm fail to highlight the parent brand only focuses on extension as parent
brand will help to generate trials and acceptance by the targeted customer especially
when parent brand has good reputation
Lack of demand by the customer
Negative association
Problem of fit
Creation of Unnecessary association
Weakening of existing association
Dilatation of the parent brand image resulting in confusion
Under positioning or over positioning of new brand
Rigid completion i.e when company are not able to beat the competition which is
essential for survival.

STRATEGIES OF BRAND EXTENTION


1. Umbrella Strategy
When a single brand name used in all the products, which the company is dealing
with the cost of investing in a single brand, is generally less in comparison to building
multiple brands.
Individual branding
A brand extension strategy in which each product has given its own unique name it is
also considered as multi-branding such branding leads to improved brand image and
identity but disadvantage is that is difficult and complex to give each product a
different name
Line branding
When a company starts offering one product to cater a consumer group and later
extend to other product to meet the needs of the consumer products
Range branding
Under this branding strategy, the company offers complementary products to meet
the needs and wants of the customer
Source branding
When the company combines the firms name with the product brand name then it is
called as source branding or double branding. You can say it is a hybrid of umbrella
branding and product branding.
Endorsement branding
When a product name is more popular than the firm brand name then it is called as
endorsement branding basically it is modified version of source branding

CHECKLIST BEFORE BRAND EXTENTION


Identify the brand image in the minds of the customers.
Identify all those areas in which your consumer gives permission to your brand to
manage.
You must have a clear understanding regarding whether your brand is over or under
extended extension.
Identify the growth opportunity do you have the capability to create new categories to
cater the unmet need of the customer.
Have you identified all the ways your brands and others in the category have made
compromises with the consumers in a well-designed way?
How to target a new market segment to which you would make your brand appealing
to the determined upcoming generation of consumers.
How to come up with the strategies which will help the parent brand to maintain its
relationships with current and future customer throughout the lifetime.
Would you have a plan that specifies what categories your brand will enter next in
what order they will enter them and in what frame?

CLASSIFICATION OF BRAND EXTENTION


Line extension
The parent brand used to enter a new product that target new market segment with a
product category currently served by the parent brand. A Line extension often
involves serving in the form of size or different application of the brand.
Category extension
The parent brand issued to enter a different product category from that currently
served by the parent brand.

BRAND EXTENTION PROCESS

Evaluation of brand extension- Define Actual and desired customer knowledge


about the brand it is critical to understand in fully in depth and breadth of the brand
awareness of the parents brand and their strength favourable and uniqueness of its
association.
Identify the possible extension- Customer factor when identifying potential
brand extension marketer should consider parent brand association especially as they
relate to the brand position and core benefits and product and category that might
seem to be fit with the brand image in customer minds.
Evaluating the potential of the brand- in forecasting, it is necessary to access
through judgment and research the likelihood that the extension would realise the
advantages and avoid disadvantages of brand extension.
Design marketing programs and launch extension- too often extension are
used as a shortcut to introduce new product and insufficient attention is paid to
develop a brand and market strategy that will maximise the equity of the brand
extension as well as enhance the equity of parent brand.
Evaluate extension success and affect brand equity- The final step in
evaluating brand extension opportunities involves assessing the extension is able to
achieve it's our equity as well as contribute to equity of parent brand. A number of
decisions have to make concern the intro of brand extension and number of factors
will effect on the brand.

BRAND EXTENSION OF COCA COLA AND PEPSICO


From your favourite actor to your beloved cricketer in India, the uses of soft drink rise above
the expansion dream of the company. Today Coca Cola is the most popular Brand amongst all
the soft drinks that exhibit the rational amount of quantity with quality product at all. Well,
Coca cola and PepsiCo are two well known Brands contributing the soft drinks in social and
personal platform and diversified in different quality product that is well known by its
consumers. Both brands have taken advantage of their own brand equity and launched several
variations of their own regular products in terms of flavours and ingredients. The attempt to
widen the product portfolio and Brand equity is something measurable based on Brand
extension. They seemingly knew for the product quality with the extension of their healthier
product as per the demand and supply to the consumers to accelerate on their own sale, with
the whirlwind against the competitor with similar advantage in their own extended product in
the line extension mode. Brand extension may suffer but it is mandatory to serve the best
quality with healthier profile.

Extension of Coca Cola Product


Coca Cola Light/Diet Coke: are both the same product but with different names because in
some countries the word Diet does not mean low-calorie. A sugar and calorie free soft drink
was invented in the United States in 1982, and was the first brand extension of Coca-Cola. It
was launched as a respond to the Diet Pepsi that was launched in 1964 and was acquiring
great relevance in the market. The sweetener mix used for the product changes among
countries due to different consumer preferences.

Coca Cola Zero: introduced in 2005 within the low calories segment and its main target
are men, because they tend to link Diet and Light to women. It is intended to be the same
taste as the Coca Cola Classic, while Coca Cola Light/Diet Coke has a different formula. Is
sweetened with a blend of low-calorie sweeteners, while Diet Coke is sweetened with
aspartame
Coca-Cola Cherry, Diet Cherry and Zero Cherry: it was launched in 1985 and
was the third variation of the brand. Then, in 1986 thanks to a successful performance Diet
Cherry Coke was introduced and in 2007 was added Coca-Cola Cherry Zero

Coca-Cola Black Cherry Vanilla and Diet: it was launched in 2006 but due to low
sales it was then discontinued in 2007

Coca Cola with Lime: released in 2005 as a respond to the consumers request but it
hasnt been very successful in several countries where it was discontinued. It has limited
edition in many countries.
Caffeine-Free Coca-Cola, Diet and Zero: introduced in 1983 as a response to Pepsi
Free that was having notorious results. The diet version was the first extension of the Diet
Coke.

Vanilla Coke: released in 2002 to compete with Pepsi Vanilla but it didnt have a good
performance. In 21111007, it was re-launched in the US and in the UK in 2013, where it was
1supposed to be a limited edition but thanks to a better sales behaviour it stood as a regular
product.

Coca Cola Life: Launched in 2013 in Argentina as a pilot test, has 108 calories per bottle
which is less than the half of calories of a Classic Coke, using Stevia as a sugar substitute.
This innovative product claims to be green and natural gas sold in a recyclable bottle that is
made from 30% plant-based materials

Extension of PepsiCo Products

Diet / Light Pepsi: Introduced in 1964 to attack the current competitor Tab produced by
The Coca Cola Company that was an innovative Cola in the Low Calories segment.
Nowadays it is one of the main products of the Pepsi Portfolio.
Pepsi Next: launched in 2013 with 30% less sugar than regular Pepsi and no artificial
sweeteners. It is especially created for people who do not like Diet Pepsis taste.

Pepsi Wild Cherry: Introduced in 1988 in order to compete against Cherry Coke that was
developed two years earlier.

Pepsi Free: Developed in 1982 and it is a Caffeine-Free that is today known as Caffeine-
Free Pepsi and Caffeine-Free Diet Pepsi.
Pepsi Max: is a low-calorie and sugar-free product and contains more caffeine than Diet
Pepsi.

Pepsi Lime: Introduced in 2005 with lime flavour added to the regular Pepsi

Pepsi Raw/Natural: Released in 2008 and contains naturally sourced ingredients with no
artificial flavouring, colourings, preservatives and sweeteners. In countries like Mexico and
United States is distributed as Pepsi Natural so Pepsi had the idea of develop a natural
product that is now improved by Coca Cola Life.

Pepsi Vanilla: Released in Canada and the U.S. in 2003 in order to attack Vanilla Coke.
Today this product is no longer available but Diet Pepsi Vanilla keeps standing in the market.
Cherry Vanilla Pepsi: was a re-launch of the Vanilla Pepsi in 2010 with the addition of
natural cherry flavour.

Some Limited Editions: Pepsi Mojito, Tropical Chill and Pepsi Strawberry Burst.

Pepsi AM: Launched in 1989 and it had more caffeine than a regular Pepsi, was meant to
be a morning drink but it was discontinued in 1990.

BRAND PERSONALITY
The act of designing the companies in a certain and occupy the distant place in the customer's
mind as the brand product has to personalise and click to the mind of customers as they can
reach well to the extent in the mind of customers with the perceived trait. In other words,
brand personality is a framework that helps the organisations or a company, and that shapes
the way people's thinking about the product and with positive actions that benefit the firm.

Characters of Brand Personality


Customers most likely purchase the brand which they are having the same personality similar
as the brand. Brand personality has five characteristics i.e. excitement, sincerity, ruggedness,
competition and sophistication. Excitement with youthful attitude, careful and well spirited,
sincerity with feeling of kindness, thoughtfulness, and an orientation towards family views,
ruggedness is through of rough, tough, outdoorsy and athletic, competence is considered to be
successfully accomplished and influential highlighted by leadership & sophistication make a
brand seem elegant prestigious, and sometimes even pretentious.

Choosing brand personality


Brand personality should not be confused with the product and the image of the brand. Brand
personality creates an emotional association in the mind of the defined consumer group.
Personality makes the perception of the brand in the mind of the consumer group assuming
that the brand is an asset for the consumer and communicates about the product specification.

It is more important for a company to specify and creates the positive brand image with the
determination to gave the quality product to the consumers and bring the positive image
through the brand personality.

WHY BRAND PERSONALITY


There has been increased interest in brand personality, as it is defined as the set of human
characteristics associated with a brand. A brand personality ties emotional bondage between
the consumers and the brand substitutes and products offered by a brand. Brand personality
can give the tremendous outlook of a brand in the term of brand image to enhance the quality
of a brand with the image. A brand must maintain consistent, desirable, and enduring
personalities to ensure the brand long-term success. A distinctive brand personality can help
create a set of unique and favourable association in consumers memory and thus build and
enhance brand equity.

Brand personality supports the identification of the consumer with his or her brand and thus
increases the personal meaning of a brand for an individual.The individuals pe rceived the
brands having the personalities is a part of self-concept actualizing and summarising the
brand perception with their own thought process and re-affirming the own self-concept by
their feelings.

Building brand personality


As the brand personalities resonate with people, brands with a corporate Identity are easier to
remember and identify the specification of a product offered by the brand. It can manipulate
the wrong perception about the product they offer the identity of the brand with the positive
image. The customers become more loyal when they feel it has a personality they can trust. In
fact, personality gave the trust and teach the customers that how to use the product and how
the product fit into their lifestyle. The main goal of creating a brand personality is creating
and identifying the customers they can interact with in a short and specific point of time with
a positive perception in the mind of the customer and positive self-image of the brand.

This is the originally framed Coca-Cola company drawn graphic by artists presented on July
12, 1944, to Charles Howard Candler on the occasion of Coca Colas 1 Billionth Gallon of
coca Cola Syrup.

Dimensions of Brand Personality formulated by the personification of the brand that


provides the insights into the effective way to communicate with the target audience. Some
fundamentals of human behaviour adopted by the brand and liable to forge similar relations
with the target audience. Bridging the gap between the consumers and brand requires a level
of sensitivity and respect that goes beyond the traditional way of thinking. Brand personality
displays more familiar human characters that are better aligned to connect with their intended
target audiences. Influencers and peer network programs succeed due advises seeks from the
friend and peers to acknowledge the value of the Brand.

Dimensions of Brand Personality:


There are five dimensions of Brand personality as per research, this is a framework to
describe and measure the Personality of a brand. It is a model to describe the profile of a
brand by using an analogy with human being.
These are the dimensions:

RDdSOUCEB oixeurapn ac filwmgr ptci n iadstg e n pedtibeo r - meclidot t ato n ti - o


nercyP s a esng y s rtc ets e ho n a l i t y
Each facet is in turn measured by a set of trait. The measurement has been done through
using a five scale.
Scale 1- Not at all descriptive Scale 2- Not very descriptive
Scale 3- Undecided Scale 4- Mildly descriptive
Scale 5- Moderately Descriptive Scale 6- Extremely descriptive

Prior researches on Brand personality have shown that consumers develops relationships with
brands and often the attribute of human emotions, traits and intentions to human entities
inanimate product. Coca-Cola and Pepsi are two leading soft-drink brands in India occupying
95% of the soft drink market. With low, functional benefits of soft drinks and no
differentiation in taste, colour or price of the two brands, marketers have to cash in on the
self-expressive value of their product.
Being at time customers find it weird to look that they are in a relationship with the brand and
it reflects their trait. They find that it looks good to take the intentions for the same product.
My research says they are happier with the brand that compliments their personality. Higher
the value of the brand higher the consumer gauge the brands attractiveness. In addition, this
leads the positive word of mouth. Consumers often buy products that suit them and which
pleases the personality to bring out the happiness. They enhance their self-image and
celebrity endorsement arise this fact by increasing the demand of the Brand or product. It is
important for marketers to convey that it is impactful and its taste reflects the brand as per
product serves a same pinch of quality with different product size. It will go and reflect on its
users.
They specify their chosen product at the loyal value in a different situation and taste to work
for them. There are many reasons those consumers specifies that one brand every time they
consumed when they need to be satisfied. It can be specific and much more lucid when these
things appear in our research. The questionnaire is set to rotate in this topic of the use of
coca cola products. However, consumer may choose Brand with the differentiation. It is
crucial for a researcher and a marketer to find the consumers image of the brand. The
effective market plan is ready to develop based on the collective notions of the consumer
towards the brand and its personality.
Measuring the personality of Coca cola Brand in the survey questionnaire is suitably fit for
the research regime, it is helpful for the coca cola company to accomplish their goals with the
research obligations, and it suggests specifying the plan according to the situation.
OBJECTIVES, STRATGY AND TACTICS
Decision making is a key aspect to any business. To pick the best decision for any
situation you would need to know what your goal is, your reason, objectives, strategies and
tactics. Objectives, strategies, and tactics are crucial to a businesss success. The main
difference between those three terms are that objectives are medium-long term targets,
strategies are long term objectives, and tactics are short term objectives.

Objectives give a sense of direction, unity, and purpose. They play a big role in forming
the foundation for companies in the decision making process. Objectives can be
communicated through mission statements.

Strategies and tactics both refer to a plan or scheme but strategies are long-term plans
that will have significant consequences while tactics are short term and may be less
significant in comparison to strategies.

The main objectives for the Coca-Cola Company are to be globally known as a business that
conducts business responsibility and ethically and to accelerate sustainable growth to operate
in tomorrow's world. By having these objectives, it forms the foundation for companies in the
decision making process.

STRATEGY AND TACTICS


The Coca-Cola company aims to be globally known, they do this by targeting different areas
across the globe with different products, gaining their brand name and popularity. All the
bottling partners work closely with their customers such as convenience stores, grocery
stores, movie theatres and street vendors to create and use localized strategies developed in
partnership with the Company. Their competition with other beverage companies are also
narrowed down, as they own various brands that could be possible competition. For example,
the company sells Coke without the competition of other popular soft drink brands like Sprite
and Fanta because the company owns those brands as well. The company often reviews and
evaluates their business plans and performance to improve their earnings and analyze their
competitive position in the market. They make decisions in realigning their business models
to match the objectives of the company by using strategies and tactics in the analysis of their
performance.
MISSION AND VISION STATEMENT
The world is changing all around us. We must look ahead, understand the business to shape
the new trends in future and move swiftly to what extent we extend the vision, mission
statement as per the plan, and implement it in real for the growth of the business and next
adventures. That is what Coca Cola statement creates long-term destination for Coca Cola
Business and provide a Roadmap for winning with the positive partners for the Business.

MISSION

To refresh the world


To inspire moments of happiness and optimism
To create value and make a difference

VISION
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
responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.

I thought that the vision statement points were more in depth and detail in comparison to their
mission statement points when it should've been the other way around. The mission statement
was more abstract and broad whereas the vision statement was more clear and direct. Both
statements somewhat communicated what their goal is for the future and where the company
is at now and I thought that both statements together did portray what the company was
trying to achieve.

More over we take every step to automate the business in few steps towards the Growth.
Winning culture of Coca Cola defines what it meant for attitude and behaviour that will be
required for Coca Cola to make their vision a reality.

Coca Cola values serve as a compass for actions and describe how Coca Cola behave
in the world.

Leadership: The courage to shape a better future


Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

Focus on the Market


Focus on needs of consumers, customers and franchise partners
Get out into the market and listen, observe and learn
Possess a world view
Focus on execution in the marketplace every day
Be insatiably curious

Smart Work
Act with urgency
Remain responsive to change
Have the courage to change course when needed
Remain constructively discontent
Work efficiently

Act like owners


Be accountable for our actions and inactions
Steward system assets and focus on building value
Reward our people for taking risks and finding better ways to solve problems
Learn from the outcomes - what worked and what didnt

Be the Brand
Inspire creativity, passion, optimism and fun

LIMITATIONS
To investigate the predicting role of extension naming the strategy and category which
is fit for the transfer of the brand personality of the parent brand to its extension due
to its role of Brand personality.

the effective interaction and its selective effect of various combinations of the two
predictors when determining brand personality transfer are also explored and
extended the process of the Impact reflect on the consumer's behaviour due to its
brand personality.
CHAPTER II
LITERATURE REVIEW
John Pemberton addicted to morphine began a quest to find a substitute for the problematic
drug. The prototype coca cola recipe formulated at Pemberton eagle drug and chemical
house, a Drugstore in Columbus, Georgia, originally at a coca wine.
In 1885, Pemberton registered his French wine coca nerve tonic.
in 1886, When Atlanta and Fulton's country passed prohibition legislation, Pemberton
responded by developing coca-cola a non-alcoholic version of coca-cola wine. The first sales
were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a
patent medicine for five cents a glass at soda fountains, which were popular in the United
States at the time due to the belief that carbonated water was good for the health. Pemberton
claimed Coca-Cola cured many diseases, including morphine addiction, indigestion, nerve
disorders, headaches, and impotence. Pemberton ran the first advertisement for the beverage
on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola sold by three separate businesses were on the
market. A co-partnership had been formed on January 14, 1888, between Pemberton and four
Atlanta businesspersons: J.C. Mayfield, A.O. Murphey, C.O. Mullahy, and E.H. Bloodworth.
Not codified by any signed document, a verbal statement given by Asa Candler years later
asserted under testimony that he had acquired a stake in Pemberton's company as early as
1887. John Pemberton declared that the name "Coca-Cola" belonged to his son, Charley, but
the other two manufacturers could continue to use the formula.

Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor
that allowed for him to participate as a major shareholder in the March 1888 Coca-Cola
Company incorporation filing made in his father's place.[19] Charley's exclusive control over
the "Coca Cola" name became a continual thorn in Asa Candler's side. Candler's oldest son,
Charles Howard Candler, authored a book in 1950 published by Emory University. In this
definitive biography about his father, Candler specifically states- on April 14, 1888, the
young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an
almost completely unknown proprietary elixir known as Coca-Cola.

The deal was actually between John Pemberton's son Charley and Walker, Candler & Co.
with John Pemberton acting as co-signer for his son. For $50 down and $500 in 30 days,
Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company that
Charley held, all while Charley still held on to the name. After the April 14 deal, on April 17,
1888, Candler acquired one-half of the Walker/Dozier interest shares for an additional $750.
THE ORIGIN OF BOTTLINGS
The bottling of coca-cola was firstly started in Vicksburg, Mississippi, at the Biedenharn
Candy Company in 1891. The proprietor of the bottling works was Joseph A. Biedenharn.
The original bottles were Biedenharn bottles, very different from the much later hobble-skirt
design of 1915 now so familiar.

It was then a few years later that two entrepreneurs from Chattanooga, Tennessee, namely
Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so
persuasive that Candler signed a contract giving them control of the procedure for only one
dollar.
Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-
Cola bottling company. Candler remained very content just selling his company's syrup.

The loosely termed contract proved to be problematic for The Coca-Cola Company for
decades to come. Legal matters were not helped by the decision of the bottlers to subcontract
to other companies, effectively becoming parent bottlers. This contract specified that bottles
would be sold at 5 each and had no fixed duration, leading to the fixed price of Coca-Cola
from 1886 to 1959.

The effect of Advertising made Coca-Cola more specific about the product and advertising
product with its extension. The use of extension played a major role with benefits of the
product sampling. A different situation occurs with the same amount of vision due to its
bottling full packaged and gets the point of view from the customer that how much they like
the product on sale by the mission on product extension that reveals about the brand
personality.
What do consumers like about the product?
They know much about the product or not?
If they have the product, how they are going to use the product?
Had they read about the product ingredient?
These feedbacks can be used by the retailer and/or in any workshop, wholesaler etc.
Which/when/How/what/why store can give you goods and services with the maximum
quality product.
ORIGINAL INGREDIENTS

KOLA NUTS (a source of Caffeine)


Kola nuts act as a flavouring and the source of caffeine in Coca-Cola. In Britain, for example,
the ingredient labels states "Flavourings (Including Caffeine). Kola nuts contain about 2.0 to
3.5% caffeine, are of bitter flavour, and are commonly used in cola soft drinks. In 1911, the
U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola,
hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in
favour of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended,
adding caffeine to the list of "habit-forming" and "deleterious" substances which must be
listed on a product's label. Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg
per 100 ml).

COCA LEAVES (Coca-cocaine)


Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891,
Candler claimed his formula (altered extensively from Pemberton's original) contained only a
tenth of this amount. Coca-Cola once contained an estimated nine milligrammes of cocaine
per glass. (For comparison, a typical dose or "line" of cocaine is 5075 mg.) In 1903, it was
removed.
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves the
leftovers of the cocaine-extraction process with trace levels of cocaine. Since then, Coca-Cola
uses a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New
Jersey.
In the United States, the Stepan Company is the only manufacturing plant authorised by the
Federal Government to import and process the coca plant,[71] which it obtains mainly from
Peru and, to a lesser extent, Bolivia. Besides producing the coca flavouring agent for Coca-
Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells
to Mallinckrodt, a St. Louis, Missouri, pharmaceutical manufacturer that is the only company
in the United States licensed to purify cocaine for medicinal use.
Long after the syrup had ceased to contain any significant amount of cocaine, in the
southeastern U.S., "dope" remained a common colloquialism for Coca-Cola, and "dope-
wagons" were trucks that transported it.
ADVERTISING OF COCA-COLA
Coca-Cola's advertising has significantly affected American culture, and frequently it is
credited with inventing the modern image of Santa Claus as an old man in a red-and-white
suit. Although, the company started using the red-and-white Santa image in the 1930s. With
its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already
common. Coca-Cola was not even the first soft drink company to use the modern image of
Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its
ginger ale in 1923, after first using him to sell mineral water in 1915.

Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its
beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young
Bostonian actress Hilda Clark as its spokeswoman.

1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a
series of advertisements informing consumers that "Coke means Coca-Cola".
In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing",
produced by Billy Davis, became a hit single.

The typeface You 2 that was created for the "Share a Coke" campaign.

Coca-Cola sales booth on the Cape.


Verde island of Forgo in 2004.
Coke advertisement in Budapest, 2013.
Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone
on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern
areas of the United States, such as Atlanta, where Coke was born.
Some Coca-Cola television commercials between 1960 through 1986 were written and
produced by former Atlanta radio veteran Don Naylor (WGST 19361950, WAGA 1951
1959) during his career as a producer for the McCann Erickson advertising agency. Many of
these early television commercials for Coca-Cola featured movie stars, sports heroes, and
popular singers.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people
participating in taste tests demonstrating that, according to the commercials, "fifty percent of
the participants who said they preferred Coke actually chose the Pepsi." Statisticians pointed
out the problematic nature of a 50/50 result: most likely, the taste tests showed that in blind
tests, most people could not tell the difference between Pepsi and Coke. Coca-Cola ran ads to
combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads
compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was
furrier. Thereafter, Coca-Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 until the time of her death. She filmed
three commercials for the company. During 1994, to commemorate her five years with the
company, Coca-Cola issued special Selena coke bottles.
The Coca-Cola Company purchased Columbia Pictures in 1982 and began inserting Coke-
product images into many of its films. After a few early successes during Coca Colas
ownership, Columbia began to under-perform, and the studio sold out to Sony in 1989.

Coca-Cola has gone through a number of different advertising slogans in its long history,
including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it".

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where


consumers earn points by entering codes from specially marked packages of Coca-Cola
products into a website. These points can be redeemed for various prizes or sweepstakes
entries.

In Australia in 2011, Coca-Cola began the "Share a Coke" campaign, where the Coca-Cola
logo was placed with a new look but it is replaced with the first name. Coca-Cola used the
150 most popular names in Australia to print on the bottles. The campaign paired with a
website page, Facebook page, and an online "share a virtual Coke". The same campaign
introduced to Coca-Cola, Diet Coke & Coke Zero bottles and cans in the UK in 2013.

Coca-Cola has also advertised its product use to be consumed just as a breakfast beverage,
instead of coffee or tea for the morning coffee.

RIVALRY OF COCA COLA


According to Consumer Reports, in the 1970s, the rivalry continued to heat up the market.
Pepsi conducted blind taste tests in stores, in what was called the "Pepsi Challenge". These
tests suggested that more consumers preferred the taste of Pepsi (which is believed to have
more lemon oil, and less orange oil, and uses vanillin rather than vanilla) to Coke. The sales
of Pepsi started to climb, and Pepsi kicked off the "Challenge" across the nation. This became
known as the "Cola Wars".

In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has
been advanced that New Coke, as the reformulated drink came to be known, was invented
specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-
Cola quickly reintroducing the original formula as not Coke before 1985, but to Coca-Cola
"Classic".

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market
share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent. Coca-Cola outsells
Pepsi in most parts of the U.S., notable exceptions being central Appalachia, North Dakota,
and Utah. In the city of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.

Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,
exceptions include Oman; India; Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor
of the Pakistan cricket team since the 1990s); the Dominican Republic; Guatemala; the
Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia, and Prince
Edward Island; and Northern Ontario.

Pepsi had long been the drink of French-Canadians, and it continues to hold its dominance by
relying on local Qubcois celebrities (especially Claude Meunier, of La Petite Vie fame) to
sell its product. PepsiCo introduced the Quebec slogan "here, it's Pepsi" in response to Coca-
Cola ads proclaiming "Around the world, it's Coke".

As of 2012, Pepsi is the third most popular carbonated drink in India, with a 15% market
share, behind Sprite and Thums Up. In comparison, Coca-Cola is the fourth most popular
carbonated drink, occupying a mere 8.8% of the Indian market share. By most accounts,
Coca-Cola was India's leading soft drink until 1977, when it left India because of the new
foreign exchange laws which mandated majority shareholding in companies to be held by
Indian shareholders. The Coca-Cola Company was unwilling to dilute its stake in its Indian
unit as required by the Foreign Exchange Regulation Act (FERA), thus sharing its formula
with an entity in which it did not have majority shareholding. In 1988, PepsiCo gained entry
to India by creating a joint venture with the Punjab government-owned Punjab Agro
Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its
partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in
pursuance of India's Liberalization policy.

In Russia, Pepsi initially had a larger market share than Coke, but it was undercut once the
Cold War ended. In 1972, PepsiCo struck a barter agreement with the then government of the
Soviet Union, in which PepsiCo was granted exportation and Western marketing rights to
Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. This
exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.

Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned
words like "coca colonization", Pepsi-Cola and its relation to the Soviet system turned it into
an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on
"perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics
viewed the policy as an attempt to usher in Western products in deals there with the old elites.
Pepsi, as one of the first American products in the Soviet Union, became a symbol of that
relationship and the Soviet policy. This was reflected in Russian author Victor Pelevin's book
"Generation P".

In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We Didn't
Start The Fire". The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of
various musicians in advertising campaigns. Coke used Paula Abdul, while Pepsi used
Michael Jackson. Both companies then competed to get other musicians to advertise its
beverages.

In 1992, following the dissolution of the Soviet Union, Coca-Cola was introduced to the
Russian market. As it came to be associated with the new system, and Pepsi to the old, Coca-
Cola rapidly captured a significant market share that might otherwise have required years to
achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi
with 13 percent.

Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some American Jewish
organizations attributed Pepsi's previous reluctance to do battle to the Arab boycott. Pepsi,
which has a large and lucrative business in the Arab world, denied that, saying economic,
rather than political, reasons kept it out of Israel.

WHY COCK VS PEPSICO?


Coca Cola and Pepsi are the two brands, which occupied 95% of Indian market. Moreover,
both are leading soft drink brand. There is no any difference between in these two brands
taste, colour or price. In absence of the same product of other beverages having different
colour and different taste (they are having the same price), Brand Coca Cola can be beatable
by PepsiCo Brand. We can compare these two companies in terms of sales, advertising, social
media, earnings etc. Both the companies have their own brand extension and both of them are
using the same extension i.e. Line extension. Before we would get to know this we should
know about the Coca cola line extension and also about the PepsiCo company which uses the
same line extension for the beverages.
It can be differentiated by the products they serve in the Indian market By using the line
extension strategy.

Coca Cola Products in India are: Coke, Diet Coke, Thums Up, sprite, Limca, Maaza, Fanta,
Gorgia(Coffee), Kinley (drinking water).

And PepsiCo products are: Pepsi, Diet Pepsi, 7 Up, Miranda, Mountain Dew, Tropicana
juices, Lays, Cheetos & Ruffles(snacks), Quaker Oats, Aquafina(drinking water).

Features: Coca Cola Pepsi


Bar weight 10 FL OZ (200ml) 10 FL OZ (200ml)
Calories 121.25 150
Carbohydrates(gm) 33.75 34.5
Flavours (numbers) 2 2
Price/Bottle Rs. 10 Rs. 10
Product Claims All foods and beverage can Offers beverages that resorts to the
feet into healthy balanced diet customers expectations and make
when consumed in appropriate it more enjoyable for them to lead
proportion. healthier lives.
Target Consumers Children, adults, Younger People from younger generation,
Generation, sports personality sports personality and celebrities.
and celebrities.
Distribution Grocery stores, Retail stores, Grocery stores, Retail malls,
Shops, Malls, etc. Shops, etc.
Brand Positioning Sweetened carbonated drink Sweetened carbonated drink

Both brand uses advertising of their own brand with the use of brand extension impacted
brand personality. They Promote their product :
Coca Cola promote it through the Brand location Strategy- The Two Indias i.e. India A:
Life Ho To Aaisi, India B:Thanda matlab Coca Cola and with small bottle schemes.
Whereas PepsiCo balances two influences in the minds of the customers You are Cool the
way you are, Dont try to be any different. PepsiCo was positioned as the new cool youth
Icon, nothing official about it, Yeh Dil Maange More, Mera Number Kab Aayega?,
Yeh pyaas hai badi, Youngistan, and Change the game.
CHAPTER III
COMPANY PROFILE

THE COCACOLA COMPANY


The Coca-Cola Company uses different portfolio. This is a list of variants of Coca-Cola
introduced around the world. In addition to the caffeine-free version of the original,
additional fruit flavours have been included over the years. Not included here are versions of
Diet Coke and Coca-Cola Zero; variant versions of those no-calorie colas can be found in
their respective articles.
Caffeine-Free Coca-Cola (1983present)- Coca-Cola without the Caffeine.

Coca-Cola Cherry (1985present)- Coca-Cola with a Cherry Flavour. It Was available in


Canada starting in 1996. Called "Cherry Coca-Cola (Cherry Coke)" in North America until
2006.

New Coke / Coca-Cola II (19852002) - A short-lived formula change, remained after the
original formula returned and was rebranded later as Coca-Cola II.

Coca-Cola with Lemon (200105) - Coca-Cola with a Lemon flavour. Available in: Australia,
American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and
Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau,
Malaysia, Mongolia, Netherlands, New Caledonia, New Zealand, Reunion, Singapore, Spain,
Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza.

Coca-Cola Vanilla (200205; 2007 to present)- Coca-Cola with a Vanilla flavour. Available
in: Austria, Australia, China, Czech Republic, Finland, Germany, Hong Kong, New Zealand,
Malaysia, Slovakia, South-Africa, Sweden, Switzerland, United Kingdom, and the United
States. It was introduced again in June 2007 by popular demand.

Coca-Cola with Lime (2005present)- Coca-Cola with a Lime flavour. Available in Belgium,
Netherlands, Singapore, Canada, the United Kingdom, and the United States.

Coca-Cola Raspberry (2005)- Coca-Cola with a Raspberry flavour. It was only available in
New Zealand and currently available in the United States and the United Kingdom in Coca-
Cola Freestyle fountain since 2009.

Coca-Cola Black Cherry Vanilla (200607)- Coca-Cola with a combination of Black Cherry
and Vanilla flavour. It replaced and was replaced by Vanilla Coke in June 2007.

Coca-Cola Black (200608)- Coca-Cola with a rich coffee flavour, formula depends on the
country. Only available in the United States, France, Canada, Czech Republic, Bosnia and
Herzegovina, Bulgaria, and Lithuania
Coca-Cola Citra (2005present) Coca-Cola with a citrus flavour. Only available in Bosnia
and Herzegovina, New Zealand, and Japan.

Coca-Cola Orange (2007) Coca-Cola with an orange flavour. Was available in the United
Kingdom and Gibraltar for a limited time. In Germany, Austria, and Switzerland it is sold
under the label, Mezzo Mix. Currently available in Coca-Cola Freestyle fountain outlets in
the United States since 2009 and in the United Kingdom since 2014.

Coca-Cola Life (2013present)- A version of Coca-Cola with stevia and sugar as sweeteners
rather than just simply sugar.

In 1892, Candler set out to incorporate the second Company The Coca-Cola
Company, had the earliest record of the Company burned in 1910. The action was
claimed to have been made during a move to new corporation offices around the time.

After Candler had gained a better foothold on Coca-Cola in April 1888, he


nevertheless forced to sell the beverage he produced with the recipe he had under the
names "Yum Yum" and "Koke". This was while Charley Pemberton was selling the
elixir, although a cruder mixture, under the name "Coca-Cola", all with his father's
blessing. After both names failed to catch on for Candler, by the middle of 1888, the
Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola
and hoped he could force his two competitors, Walker and Dozier, completely out of
the business, as well.
On August 16, 1888, Dr John Stith Pemberton suddenly died; Asa G. Candler then
sought to move swiftly forward to attain his vision of taking full control of the whole
Coca-Cola operation.
Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa
Candler more than anyone else. Candler is said to have quickly manoeuvred to
purchase the exclusive rights to the name "Coca-Cola" from Pemberton's son Charley
right after Dr Pemberton's death. One of the several stories was that Candler bought
the title to the name from Charley's mother for $300; approaching her at Dr
Pemberton's funeral. Eventually, Charley Pemberton was found on June 23, 1894,
unconscious, with a stick of opium by his side. Ten days later, Charley died at
Atlanta's Grady Hospital at the age of 40.
In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th
[1888], he [Asa Candler] became sole proprietor of Coca-Cola, a fact which was
stated on letterheads, invoice blanks and advertising copy".
With this action on August 30, 1888, Candler's sole control became technically the
truth. Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker
a full payment amounting to $1,000, which all agreed Candler could pay off with a
series of notes over a specified time span. By May 1, 1889, Candler was now claiming
full ownership of the Coca-Cola beverage, with a total investment outlay by Candler
for the drink enterprise over the years amounting to $2,300.
In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888,
came forward to claim that her signature on the 1888 Coca-Cola Company bill of sale
had been forged. Subsequent analysis of certain similar transfer documents had also
indicated John Pemberton's signature was most likely a forgery, as well, which some
accounts claim was precipitated by his son Charley.
On September 12, 1919, Coca-Cola Co. was purchased by a group of investors for
$25 million and reincorporated. The company publicly offered 500,000 shares of the
company for $40 a share.
In 1986, The Coca-Cola Company merged with two of their bottling operators (owned
by JTL Corporation and BCI Holding Corporation) to form Coca-Cola Enterprises
Inc. (CCE).
In December 1991, Coca-Cola Enterprises merged with the Johnston Coca-Cola
Bottling Group.

SWOT ANALYSIS OF COCA COLA


Coca cola is a brand, which is present in households, shops, hotels, offices, etc. You name it,
and the place would have heard of Coca cola. Coca cola has many products in its arsenal.
Here is the SWOT analysis of Coca cola.

STRENGHTS

Brand Equity Inter brand in 2011 awarded Coca cola with the highest brand equity
award. Coca cola with its vast global presence and unique brand identity is definitely one of
the costliest brands with the highest brand equity.

Company valuation One of the most valuable companies in the world, Coca cola is
valued around 79.2 billion dollars. This valuation includes the brand value, the numerous
factories and assets spread out across the world and the complete operations cost and profit of
Coca cola.

Vast global presence Coca cola is present in 200 countries across the world. Chances
are, any country that you go to, you will find coca cola present in that market. This vast
global presence of coca cola has also contributed to the building of the mammoth brand
name.

Largest market share There are only two Big competitors in the beverage segment
Pepsi and Coca cola. Out of these two, coca cola is the clear winner and hence has the largest
market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and
Maaza are the growth drivers for Coca Cola.

Fantastic marketing strategies Coca cola unlike Pepsi always tries to win peoples
heart. Where Pepsis target is continuously changing, and is targeted towards youngsters,
Coca cola targets people of all ages. The targeting is also done by celebrities who are well
liked for example Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc
Customer Loyalty With such strong products, it is natural that Coca cola has a lot of
customer loyalty. The products mentioned above like Coca cola and Fanta have a huge fan
following. People will prefer these soft drinks over others. Because of the good taste of Coca
cola, finding substitutes becomes difficult for the customer.

Distribution network Coca cola has the largest distribution network because of the
demand in the market for its products. On the other hand, due to this successful distribution
network, Coca cola has been able to command such a high market presence.

WEAKNESSES

Competition with Pepsi Pepsi is a thorn in the flesh for Coca cola. Coca cola would
have been the clear market leader had it not been for Pepsi. The competition in these two
brands is immense and we do not think Pepsi will give up so easily.

Product Diversification is low Where Pepsi has made a smart move and diversified
into the snacks segment with products like Lays and Kurkure, Coca cola is missing from that
segment. The segment is also a good revenue driver for Pepsi and had Coca cola been present
in this segment, these products would have been an additional revenue driver for the
company.

Absence in health beverages If you watch the news, you would know that obesity is
a major problem-affecting people nowadays. The business environment is changing and
people are taking measures to ensure that they are not obese. Carbonated beverages are one of
the major reasons for fat intake and Coca cola is the largest manufacturer of carbonated
beverages. The inference is that the consumption of beverages in developed countries might
go down, as people will prefer a healthy alternative.
Water management Coca cola has faced flak in the past due to its water management
issues. Several groups have raised lawsuits in the name of Coca cola because of their vast
consumption of water even in water scarce regions. At the same time, people have also
blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus, water
management needs to be better for Coca cola.

OPPORTUNITIES

Diversification Diversification in the health and food business will improve the
offerings of Coca cola to their customers. This will also ensure that they get better revenue
from existing customers by cross selling their products. The supply chain, which is
distributing their beverages, can also distribute these snacks thereby sharing the load of
Supply chain costs.

Developing nations Although developed nations have a high presence of Coca cola,
these countries are slowly moving towards healthy beverages. However developing countries
are still being introduced to the delight of carbonated drinks and soft drinks. Countries like
India which are developing and have a hot summer, find the consumption of cold drinks
almost doubled during summers. Thus, the higher consumption in developing environments
can be a good opportunity to capitalize for Coca cola.

Packaged drinking water With hygiene becoming a major factor in the consumption
of water, packaged drinking water has found its way into peoples mind. Coca cola has a
presence in the packed drinking water segment though Kinley. Although Kinleys expansion is
slow as of now, Kinley has a huge potential of expansion. Thus, Coca cola as a company
should focus on the expansion of Kinley as a brand and take it up to Bisleris level of trust.

Supply chain improvement Supply chain can be a major cost sinkhole with the
transportation costs always rising. Coca cola has a complete business based on transportation
and distribution. There will always be possible improvements in this area. Thus, Coca cola
should keep strict watch on its Supply chain and keep improving to bring the cost down.

Market the lesser selling products In the product portfolio of Coca cola, there are
several products which have not found acceptance in the market. Coca Cola needs to
concentrate on the marketing of these products as well. It is understood that Coca cola has
made several expenses to launch these products. Thus, the marketing and subsequent rise of
sale of these products will help revenue of Coca cola.

THREATS
Raw material sourcing Water is the only threat to Coca cola. The weakness of Coca
cola was the suspected use of pesticides or vast consumption of water. However, the threat
here is that water scarcity is on the rise. With the climate changing, and regions of various
countries facing scarcity of water, eventually someone might raise fingers on beverage
companies. Thus, Water sourcing is an axe, which can fall anytime on the head of Coca cola.
If water is limited or rationed, Coca cola can experience a major downfall in their revenue
and capacity of distribution. The same can affect its archrival Pepsi as well.

Indirect competitors Coffee chains like Starbucks, Caf coffee day, Costa coffee are
on the rise. These chains offer a healthy competition to Coca colas carbonated drinks. They
might not be a big competition for Coke, but they do give a dent to its beverage market..

CHAPTER IV
RESEARCH METHODOLOGY

Both primary and secondary research has been conducted

Primary research has been done with the help of questionnaire

Secondary research is done with the help of available literature.

Sample size 50 respondents

These objective specify that at what mean they use Coke brand. There are five dimensions,
which is working for the identification for the brand personality. It is effective for the
company when you use survey- the method of collecting the data, with that report we can
observe the consumers perception of brand and we can execute our plan for the enhancement
of the new target market in association with Coca Cola product. Either they like or dislike,
they used to keep conveying their own personality with their own product size and shape.
You can survey for the next report that is in how many times a week they purchase Coke.
This survey report varied many times. However, the five dimensions can measure brand
personality, on the top of this we can use the brand extension for the brand personality of
Coke, and PepsiCo with both the feet i.e. line as well as category extension too.

CHAPTER V
DATA ANALYSIS & INTERPRETATION

Researchers most commonly use Akers scale for measuring the brand personality of a
corporation or a company, while some researchers use their own scale for measuring the
brand personality. Here I prefer to use the scale as per the five dimensions of brand
personality i.e. Sincerity, competence, excitement, sophistication and ruggedness. This
methodology has been used in the case study and surveyed report had submitted for the
verification.
The report of the respondent here shown below:

Coca Cola Pepsi


No. of Consumers 16 14
Gender Males- 9, Females- 7 Males- 4, Females- 10
marital status Single Single
Occupation Student-8, Employed-8 Student-9 , Employed-5
Monthly Income
Below 10000/- 0 0
10000-20000 2 1
20000-50000 5 2
Above 50000/- 1 2

The following table indicates the demographics of the Sample. It denotes the age
specification and if employed than sample of their monthly Investment in the brand product
using the brand personality with obeying attitude. There are much more things here defines
the impact of brand extension on brand personality of coca cola.

Purpose The purpose of this paper is to investigate the predicting roles of extension
naming strategies and categorical fit on the transfer of brand personality from a parent brand
to its extension brand. Extension naming strategies include direct and indirect naming, while
the categorical fit is the similarity between an extended product and its parent brand's
cognitive category. Further, the interaction effect and the relative effectiveness of various
combinations of the two predictors when determining brand personality transfer are also
explored.

Design/methodology/approach A 22 factorial between-subject experimental design


with one covariate is used to test the proposed hypotheses

Findings The findings show that consumers perceive higher brand personality transfer
when a direct naming strategy is applied or when the parent brand extends to a high perceived
fit product. The former is the dominant predictor of brand personality transfer. There also
exists an interaction effect between extension naming strategies and categorical fit.
Specifically, consumers perceive the highest brand personality transfer when a direct naming
strategy is applied for a high fit extended product. Moreover, the use of a direct naming
strategy for an extended product with a low categorical fit still leads to a higher degree of
parent brand personality than both the other cases in which an indirect naming strategy is
applied for either high or low fit extended products. Furthermore, irrespective of the degree
of categorical fit, the transfer of brand personality is low when an indirect naming strategy is
applied.

Originality/value The current research is pioneer work in identifying the determinants


of brand personality transfer. It also notes the interaction effect and the relative effectiveness
of the determinants

CHAPTER VI
FINDINGS
Brand personality dimension that is developed by Aaker major points to scale the brand
personality i.e. on five factors and each factor is represented by graph which is shown below
at the measure point of view.

Factor ranking depends upon the analysis subjected to the customer point of view and
measurement.

Sincerity

excitement

competence Pepsi
Coca Cola

sophistication

ruggedness

0 1 2 3 4 5 6 7

On the sincerity and competence Coca Cola ranks higher than that of Pepsi. As Pepsi is more
rugged than that of Coca Cola and both of them are as same in the desk of Sophistication and
excitement.
Factor Comparison

1. Sincerity
There are four facets measured under Sincerity i.e. cheerfulness, wholesomeness, Down-to-
earth and Honesty. Coca Cola is measured as the most honest brand with respect to Pepsi.
Differentiation between these two defines the honesty of the brand as the facet under
Sophistication implies that Coca cola is most honest brand then Pepsi. True to the
wholesomeness both the brands leads to the healthy choice under these measurement of brand
personality.

25

20

15
Pepsi
Coca cola
10

0
Down-to-earth Honest Wholesome Cheerful
2. Excitement
The Facets Under excitement measure is Daringness, Spirited, Imaginative and Up to date. In
this measurement of the facets of Excitement, imaginativeness scores Pepsi is less than Coca
cola.

18

16

14

12

10
Pepsi
8 Coca Cola

0
Daring Spirited Imaginative Up-to-date

3. Competence
Coca Cola Leads the Competence factor in all the facets which are Reliable, Intelligent and
successful. In front of Coca Cola is highly Reliable and Successful then Pepsi.

20
19.5
19
18.5
18
Pepsi
17.5
Coca Cola
17
16.5
16
15.5
15
Reliable Intelligent successful
4. Sophistication
The facets studied under sophistication are Upper class and Charming. As Coca-Cola
considered upper class then Pepsi and Pepsi is considered as more charming then the brand
Coca Cola. None the less, both the brands are much more sophisticated then each other.

15.5

15

14.5
Pepsi
Coca Cola
14

13.5

13
Upper Class Charming

5. Ruggedness
The facets under ruggedness were Outdoorsy and Tough. Pepsi scores more than Coca cola in
Outdoorsy where as Coca considered as more tough than The brand Pepsi. However, it is note
down factor that both the brands seems or considered less tough than any other brand.

16

14

12

10
Pepsi
8 Coca Cola

0
Outdoorsy Tough
SUMMARY
The objective of this study was to determine the brand personality of Coca-Cola and Pepsi.

Brand Personality- Factor Rankings shows that Coca-Cola is considered to be a


Sincere and Competent brand, while Pepsis personality dimension lacks definition. The three
most dominantly perceived personality facets for Coca-Cola are Honest, Successful and
Reliable. The three most dominantly perceived personality facets for Pepsi are Honest,
Successful and Up-to-Date. Comparatively, on all the three dominant facets, Pepsi scores
lower than Coca-Cola. Coca-Colas dominant personality factors represent the following:

1. Sincerity- This factor indicates that the brand is considered to be an honest and real
brand. The consumers trust the brand to provide them with standard quality products.
Sincerity of a brand implies commitment from the brand to its consumers. This factor plays a
huge role in creating reciprocal committed (loyal) relationships between the brand and its
user.

2. Competence- This factor indicates that the consumers think of the brand as an expert of
that field. Competence is connected with technical know-how, reliability and market success.
Consumers tend to look for deeper meaning and purpose of products made by competent
brands

3. Excitement- This factor indicates that the consumer which is being untold or being
perceive the brand personality i.e. more important for the brand is must tend to look towards
their own brand personality.

4. Sophistication- It enables the brand expectation of being the brand personality, which
indicates the softness the consumer avails the most sophistication by the brand Coca Cola.

5. Ruggedness- Ruggedness shows that the product is misjudged or used for the finable
amount of rough product that cannot be suggested by the Loyal customer. It is more
identifiable when they look towards the product and its size with the remarkable pricing.

CONCLUSION
Results have shown that consumers consider Coca-Cola to be a Sincere and Competent brand
while Brand Pepsi considered a Cheerful (young and trendy) brand. Coca-Cola has the image
of an intelligent and imaginative marketer while Pepsi does not have such a marked image for
its young consumers. Consumers consider both the brands equally successful. Also, both the
beverages score equally on the Excitement and Sophistication factors. Overall, the results of
this study suggest that Coca-Cola has a well-defined brand personality while the same cannot
be said for Pepsi.
RECOMMENDATION
Brand Personality has become a keenly researched topic among marketers and researchers.
This is not only because it makes the product attractive for new customers but also because it
helps retain the existing customers by engaging them in loyal relationships with the brand.
Thus, understanding the customers views towards a brand is the way to go for creating a
strong brand. Awareness of brand personality enables marketers to design advertisement
campaigns around the generic views towards the brand. According to the results of this study,
consumers do not have an apparent view of the personality of Pepsi and thus, marketers can
promote a more persuasive personality trait in the Indian market.

Since this study involved a sample between the age group of 18 to 25 years, the views
towards the brands pertain to the respective population. Further research can be done to
assess the brands personality for a different age group that will aid in expanding the
consumer reach.

This study only addressed the personality opinions of users of the brand. Interesting results
can be found if comparisons are made between personality opinions of users vs. non-users of
the brands. The difference will be the gap to be covered by the brand to convert non-users
into users. Also, future research on relationship between brand personality and brand loyalty
should be undertaken to gauge the tangible benefits of the intangible personality dimensions.

BIBLOGRAPHY

https://www.deepdyve.com/lp/emerald-publishing/brand-extension-using-parent-
brand-personality-as-leverage-gtQBJwmhjR

https://www.studyblue.com/notes/note/n/exam-1/deck/15729449

https://www.researchgate.net/profile/Angelina_Le/publication/235251833_Brand_exte
nsion_Using_parent_brand_personality_as_leverage/links/54771a1c0cf2778985b0a2ea
.pdf?origin=publication_detail
ANNEXURE

Annexure I
AMITY BUSINESS SCHOOL, LUCKNOW

JOINING REPORT ON INTERNSHIP

1. Student: SAKSHI AGARWAL

2. Enrolment no: A7002216001

3. Contact no: 7505631208

4. Email ID: sakshi138@gmail.com


5. Name of the company: ABSOLUTE DATA RESEARCH AND ANALYTICS
SOLUTIONS PRIVATE LIMITED

6. Topic of summer Training: IMPACT OF BRNAD EXTENSION ON BRAND


PERSONALITY OF COCA COLA

7. Address of the company where student is posted: DLF CYBER CITY SEZ,
BUILDING 14, 4th FLOOR, TOWER & B, DLF CYBER CITY, PHASE-3,
GURUGRAM

8. Date of joining the company: 23/05/2017

9. Contact no: 0124 4953400

QUESTIONNAIRE

1. Which category below includes your age?


o -10
o 11-30
o 30-50
o 50-59
o 59 and above

2. What is your gender?


o Female
o Male

3. Ethnicity
o Asian
o White( British)
o White (other)
o Mixed
o Black
4. What is your occupation?
o Student
o Unemployed
o Self employed
o Retired
o Full time Job
o Full time parent
o Part time job
o Job seekers

5. Which coca cola product have you previously purchased?


o Coke
o Coke vanilla
o Coke cherry
o Diet coke citrus
o Coke lime
o Diet Coke

6. Which of the following is your favourite Coca Cola product?


o Coke
o Coke vanilla
o Coke cherry
o Diet Coke citrus
o Coke lime
o Diet Coke

7. Do you prefer Cock to similar brand like Pepsi?


o Yes
o No

8. Who do you think is Coca Colas biggest threat?


o Pepsi
o Mountain Dew
o Red Bull
o Boost
o Sprite

9. How do you felt about previous Coke ads?


o Like them
o Love them
o Alright
o Dont mind
o Dont like
o Hate
o Dont Remember them
10.Do you feel Coke is a leading Brand?
o Yes
o No