CHAPTER – I

INTRODUCTION OF
THE PRODUCT

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INTRODUCTION

Soft drinks have been described as making the “most extensive

dietary impact of foreign corporations in the developed world”. They
are usually priced just within the reach of the poorest in these countries
and may represent, via their glossily advertised images, symbols of an
enviable Western lifestyle.

Because of the relative poverty of many people in the Third World,

staple foods may be neglected in preference to soft drinks. In 1969 it
was reported that babies in Zambia had become malnourished because
their mothers fed them coke and Fanta, believing it was the best thing
they could give their children. Around the time 54% of the seriously
malnourished children admitted to the children’s hospital at Ndola had
‘Fantababy’ written on their progress charts. The Zambian government
subsequently banned Fanta advertisements “because of their influence
on the poor”.

A study at the Nutrition Institute in Rio de Janeiro found high

levels of consumption of Coke, Fanta and Pepsi in its survey of school
children between 6-14 years old. All the children showed signs of
vitamin deficiency whilst the poorest of them also showed protein/calorie
malnutrition.

A Mexican priest wrote, in 1974, that Mexican villagers believed

soft drinks should be consumed every day, leading to lower consumption
of natural products such as fruit. Some families were even seen to be
selling their natural products in order to buy soft drinks.

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 The spread of Coca-Cola and Pepsi Co operates is truly global.
Coca-Cola distributes its branded products in over 155 countries. In
Mexico, Coca-Cola and Pepsi Co control 77% of the soft drinks market,
while in Brazil, Coca-Cola alone has 55% of the market.

Cola drinks usually contain about 10% sugars – some 13 lumps in

a 330ml can. Ribena contains approximately 15% sugars – 15 lumps in
a 250ml carton. These proportions seem the norm for most soft drinks
(except of course the ‘diet’ varieties).

The Saccharin often found in the ‘diet’ varieties has to carry a

health warning in the U.S. as it has been linked to the development of
bladder cancer. The Food Commission undertook a survey in 1991 of
soft drinks brands and food a number of them, not just those labeled
‘diet drinks, contained saccharin as well as sugar. They found this a
worrying trend given that MAFF research in 1990 found 1 in 6 children
between the ages of two and five were consuming more than 2.5mg of
saccharin per kg of body weight, which was then the UK maximum
acceptable daily intake (and is still that of EC and WHO
recommendations).

According to the soft drinks industry, 90 per cent of consumption

is by the middle and lower income groups and this is the basis of the
industry’s plea to the Finance Ministry for a rationalization of excise
duty.

Apparently, the aerated soft drinks industry in India is at a

nascent stage with a per capita consumption of less than eight bottles,
the Federation of Indian Chambers of Commerce and Industry (FICCI)
said in its pre-budget memorandum. This stands lower than that in the

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neighboring countries such as Pakistan, Sri Lanka, Thailand, Indonesia
and the Philippines.

The industry has sought a rationalization of excise duty to enable

it to exploit its potential. Its main grouse is that the Budget promise
made four years ago on doing away with special excise duty (SED) on all
mass-consumption items was implemented, with the exclusion of aerated
soft drinks.

It points out that when cosmetics, refrigerators and videocassettes

were granted waiver of SED, aerated beverages, which accounted for 90
per cent consumption by the middle and lower income segments, were
not shown the same favour.

To validate its observations, the industry points out that aerated

beverage was capital and employment-intensive and supported various
ancillary offshoots such as manufacturing and service units – PET
bottles, crates and visi-coolers, retail, etc. Elaborating further, the
industry says that extra production of every one million cases generates
additional employment for 1,300 people in the economy. Against this
background it has sought removal of SED. The industry currently
employs directly or indirectly 1.5 lakh people, it claims.

Further, it points out high excise duty results in massive

production of spurious products and passes-offs manufactured in
unlicensed facilities and inflicts loss of revenue to the exchequer.

Global soft drinking growing by 5% year Soft drinks consumption

worldwide is growing by around 5% a year, according to global Soft
Drinks 2002; total volume reached 412,000 million liters in 2001,
equivalent to 67.5 liters per person.

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 North America is the largest soft drinks market with a 27% volume
share in 2001.

 Carbonates are the biggest soft drinks sector with 45% of global
volume.

 Bottled water is the highest growth sector, rising by 10% in 2001 and
accounting for 53% of total soft drinks growth from 1996 to 2001.

 The five fastest growing countries between 1996 and 2001 were from
Asia, East Europe and the Middle East.

It is important to note the advance of Asia, East Europe and other

developing markets, commented Zenith Research Director Gary
Roethenbaugh. “Thanks to highly populous and rapidly emerging
markets such as China and India, consumption in Asia is projected to
overtake that of North America in 2006.”

 The five fastest growing countries between 2001 and 2006 are all
expected to come from Asia.

 Pakistan is predicted to have the highest percentage growth rate of all.

 India is expected to make sizeable volume gains, as affluence spreads

to more of its huge population.

 Indonesia, China and Vietnam complete the top five for future growth.

We can anticipate that the overall market should bit 523,000

million liters in 2006. A continuing 5% growth rate compares favorable
with at best 1% for hot drinks, 2% for milk and 3% for alcohol.
“Economic obstacles and climate fluctuations will, of course, present

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numerous challenges, but the outlook for global soft drinks is as strong
today as it has ever been,”

Global soft drinks growth, 1996-2001

M. East 60
E. Europe 49
Asia-Aus 48
L. America 32
Africa 29
W. Europe 19
N. America 15
Average 28

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EVOLUTION OF SOFT DRINKS

The history of America and Soft Drinks go Hand in Hand

A uniquely American industry, the manufacturing of soft drinks

began in the 1830’s. However, the evolution of soft drinks took place
over a much longer time period. The forerunners of soft drinks began
more than 2,000 years ago when Hippocrates, the ‘Father of Medicine,
“first suspected that mineral waters could be beneficial to out well-being.
But Hippocrates did not envision drinking the effervescent mineral
waters bubbling from the earth’s crust. Instead, the Greeks and Romans
used them for bathing and relaxation. More than a thousand years
passed before mineral waters made the transition from therapeutic bath
to refreshing beverage.

In America, the transition resulted from the discovery of the

natural springs in New York. Many legends and myths developed about
the earth’s mysterious waters, believed to be cures for everything from
arthritis to indigestion. The claims attracted physicians and scientists
who began studying the tiny bubbles fizzing from these waters.

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 Scientists eventually proclaimed the air being released as gas
carbonium – simple carbon dioxide. Soon afterwards they perfected a
way of producing artificially carbonated water in the laboratory. With
that development, it was only a matter of time before soft drinks made it
into the hands of the America public.

By the 1830’s, both artificial and natural mineral waters were

considered healthy and refreshing products in America. But
pharmacists, believing they could improve upon their curative properties,
experimented with a multitude of ingredients from birch bark to
dandelions. And while no miracle cures developed, some very interesting
flavors and tastes were discovered. Ginger ale, root beer, sarsaparilla,
lemon and strawberry were among the most popular of the early flavors.

The soft drink industry was a seasonal business in the early days,
operating primarily during the summer months. Sales were limited by
few outlets for the new carbonated beverages, and by the consumer’s
restricted mobility.

For many years, America’s pharmacists were the driving force

behind the refinement of soft drinks and many of the flavors and
combinations. Their association with chemistry and medicine made
them ideally suited for this business, still part pharmacology and part
refreshment.

The local pharmacy was the center attraction in many American

towns in the mid-1800’s. It was customary to gather around the new
soda foundations and enjoy one’s favorite refreshment mixed on the spot.
However, as the corner drugstore grew in popularity, the soft drink
bottling industry was taking shape.

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 Gradually, demand grew for soft drinks to be consumed in the
home. Bottling the product proved difficult at first, since pressure from
the carbon dioxide forced corks right out of the bottles. Clearly, if soft
drinks were ever to be sold for consumption beyond the corner
pharmacy, there would have to be a way to keep them corked. Inventors
worked for years to develop a solution, patenting some 1,500 different
corks, caps and lids for soft drinks bottles.

Then, in 1892, the ‘crown cap’ was invented. Tiny in design, the
crown completely revolutionized the soft drink industry by preventing the
escape of carbon dioxide from bottled beverages. In fact, it was the
dominant soft drink closure for more than 70 years.

Soon the crown cap’s success was being felt at the corner
pharmacy. As home consumption of soft drinks grew, demand at the
corner drug store began to dwindle. Many pharmacists, realizing the
promising future of soft drinks, abandoned their trade to become full-
time bottlers. Others began stocking soft drinks in their stores. Horse
drawn wagons traveled America’s streets, loaded with brand-name soft
drinks and headed for growing retail outlets.

While the crown cap helped lead the way to soft drinks in the
home, it was not until the 1920’s that the trend took hold. The invention
of “Hom-Paks,” the first six-pack cartons, made it more convenient to
carry products back to the house. Their use resulted in the increased
availability and the growing popularity of soft drinks across America.

The appearance of the automobile heralded a new era for the soft
drink industry. Roadside stands appeared across the country. Service
stations became major outlets for bottled refreshment, and large

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motorized delivery trucks were better able to satisfy the country’s
growing taste for liquid refreshment.

Automatic vending machines began to appear in the 1920’s, once

again changing the business of soft drinks. Vending machines and
fountain dispensers led the way to the expansion of soft drinks to
industrial outlets. Americans could now consume the popular beverage
at home or at work.

New technology helped soft drink bottlers meet growing consumer

demand by significantly increasing the products’ availability, Traditional
6-ounce “split” bottles grew to 8-ounce and then larger and larger
containers. Today, with more than 2 million soft drink vending machines
in the U.S., refreshment is literally right around the corner.

The mushrooming demand for product resulted in the growth of

the soft drink industry, from the pharmacies into a national industry;
Inventors of soft drinks spread their products across America by opening
a few strategically placed bottling facilities.

America by opening a few strategically placed bottling facilities

through franchise agreements. Eventually it became clear that supplying
a growing nation’s thirst for soft drinks would require more than a few
additional bottling plants. But until the 1980’s, the industry was
primarily one of manual operations. Glass bottles were blown
individually, while filing, sealing, mixing, and packaging were almost
totally manual operations. Expansion could not occur without a more
mechanized process.

The changed between 1890 and 1910: New automated machinery

was developed, making the soft drink industry more efficient and

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productive. The number of plants bottling soft drinks increased from
1,377 to 4,916, as sales soared.

The industrial age was in full swing, America’s population was

exploding and soft drink demand was booming. Together, the soft drink
industry and the nation entered the era of mass production and national
marketing.

New, modern machinery turned out uniform products and

significantly increased the production of soft drinks. By the time The
Great Depression hit, carbonated beverages already were established as
part of the American way of life. Consumers were unwilling to give up
soft drinks – one of the small pleasures they could still afford to enjoy.

The Depression led the way to the creation of innovative new soft
drink brands and containers, which continued during the 1940’s and
50’s.

Responding to consumer demand, the industry rolled out soft

drinks in cans and introduced diet beverages to the market. Carriers
were developed for convenience and ease in taking soft drinks from the
store to the home.

Together, America and its soft drink industry suffered hardships

caused by World War II. Shortages of cork, sugar and steel significantly
impacted the manufacturing process, but soft drinks continued to be
available to the public. The soft drink industry participated in scrap
metal collection drives and made significant efforts to conserve natural
resources in order to support the war effort. Soft drinks were classified
as “essential to soldier morale” by the U.S. War Department and both the
soft drink industry and federal government made every effort to provide

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troops with products. When unable to ship soft drinks directly to the
soldiers, the government sent machinery and materials so they could be
made on the spot.

Since that time, the country has experienced significant progress-

a man on the moon, color TV, computers and compact disc players. For
the soft drink industry, it has meant the development of new flavors, the
sale of canned products in vending machines, and the invention of
Polyethlene Terephthalate (PET) bottles.

Soft drink companies have kept pace with the nation’s endless
thirst for refreshment. While many things have changed throughout the
years, soft drinks continue to be America’s beverage of choice. Soft
drinks are a good part of America.

SOFT DRINKS INDUSTRY IN INDIA

Introduction

Soft drink market size of FinancialYear2002 was around 270

million. cases (6480 million bottles). The market witnessed 5-6% growth
in the early ‘90s. Presently the market growth has growth rate of 7-8%
per annum compared to 22% growth rate in the previous year. The
market size for FinancialYear2004 is expected to be 7000 million bottles.

Soft drink production area

The market preference is highly regional based. While Cola drinks

have main markets in metro cities and northern cities and northern
states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in

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southern states. Sodas too are sold largely in southern states besides
sale through bars. Western markets have preference towards mango-
flavored drinks. Diet coke presently constitutes just 0.7% of the total
carbonated beverage market.

Growth promotional activities

The government has adopted liberalized policies for the soft drink
trade to give the industry a boast and promote the Indian brands
internationally. Although the import and manufacture of international
brands like Pepsi and Coke is enhanced in India the local brands are
being stabilized by advertisements, good quality and low cost.

The soft drinks market till early 1990s was in hands of domestic
players like Campa, Thumps Up, Limca etc. but with opening up of
economy and coming of MNC players Pepsi and Coke the market has
come totally under their control.

The distribution network of Coca Cola had 6.5 lakhs outlets

across the country in FinancialYear2002, which the company is planning
to increase to 8 lakhs by FinancialYear2003. On the other hand Pepsi
Company’s distribution network had 6 lakh outlets across the country
during FinancialYear2002, which it is planning to increase to 7.5 lakh by
FinancialYear2003.

Types

Soft drinks are available in glass bottles, aluminum cans and Pet
bottles for home consumption. Fountains also dispense them in
disposable containers Non-alcoholic soft drink beverage market can be
divided into fruit drinks and soft drinks and soft drinks. Soft drinks can

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be further divided into carbonated and on-carbonated drinks. Cola,
Lemon and Oranges are carbonated drinks while mango drinks come
under non-carbonated category.

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CHAPTER – II

COMPANY
PROFILE

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COCA COLA
Company profile
The Coca-Cola Company is the world’s largest beverage company,
refreshing consumers with more than 2,800 products. Along with Coca-
Cola®, recognized as the world’s most valuable brand, the Company’s
portfolio includes 12 other billion dollar brands, including Diet Coke®,
Fanta®, Coca-Cola Zero™, vitaminwater®, POWERADE®, Minute Maid®
and Georgia™ Coffee. Globally, we are the No. 1 provider of sparkling
beverages, juices and juice drinks and ready-to-drink teas and coffees.
Through the world’s largest beverage distribution system, consumers in
more than 200 countries enjoy the Company’s beverages at a rate of 1.5
billion servings a day. With an enduring commitment to building
sustainable communities, our Company is focused on initiatives that
protect the environment, conserve resources and enhance the economic
development of the communities where we operate.
FAST FACTS:
 Established: 1886
 Ranking: We own 4 of the world’s top 5 nonalcoholic sparkling
beverage brands: Coca-Cola, Diet Coke,
 Company Associates: 90,500 worldwide (as of December 31, 2007)
 Operational Reach: 200+ countries
 Consumer Servings (per day): 1.5 billion
 Beverage Variety: We offer more than 2,800 products including diet
and regular sparkling beverages, and still beverages such as 100
percent juices, juice drinks, waters, sports and energy drinks, teas
and coffees, and milk-and soy-based beverages.
 New York Stock Exchange Ticker Symbol: KO

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OUR MISSION:
 To refresh the world in body, mind and spirit
 To inspire moments of optimism through our brands and our actions
 To create value and make a difference everywhere we engage

OUR COMMITMENT TO SUSTAINABILITY – 2007/2008 HIGHLIGHTS

 Respecting People – We offered more than 1,600 training classes to
Company associates.
 Protecting the Environment – We achieved a 2% improvement in water
use efficiency in 2007 as compared to 2006.
 Supporting Communities – In 2007, The Coca-Cola Company and The
Coca-Cola Foundation made charitable contributions of $99 million to
community initiatives worldwide.
 Offering Safe, Quality Products – We launched more than 150 new
low- and no-calorie products in 2007, increasing our low- and no-
calorie beverage portfolio by 17%.

2007 FINANCIAL HIGHLIGHTS:

 Our portfolio includes 13 billion dollar brands.
 Unit case volume grew 6% to 22.7 billion unit cases worldwide (as
compared to 2006).
 Net operating revenues grew 20% to $28.9 billion (as compared to
2006).
 More than 70% of our net operating revenues and nearly 75% of our
unit case volume are generated outside of North America.

We invested $4.1 billion to acquire glaceau, maker of vitaminwater –

the fast-growing premier active-lifestyle beverage

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 The coca cola company is the global soft drink industry leader,
with world head quarters in Atlanta, Georgia. The company and its
subsidiaries employ nearly 30,000 people around the world. Syrups,
concentrates and beverage bases for coca cola, the company’s flagship
brand, and over 160 other company soft drink brands are manufactured
and sold by the coca cola company and its subsidiaries in nearly 200
countries around the world. Infact, approximately 70 percent of company
volume and 80 percent of company profit come from outside the United
States. The products of the coca cola company touch lives everywhere.
Their core brands have made an impact around the world, brands such
as Fanta, Sprite, and of course, coca cola are available and recognized in
many countries. Each of their brands is distributed in one or more
countries and is tailored to the culture and tastes of those consumers. So
wherever you are, you are sure to find a coca cola product to enjoy.
The story begins in Atlanta, Georgia on May 8, 1886, when a
pharmacist called Dr John Smith Pemberton first mixed coca cola in his
back yard. The formula, which was made from carbonated water, cane
sugar syrup, caffeine, extracts of kola nuts and cola leaves, was brought
to the nearby Jacobs pharmacy where it made its debut as a soft drink
the same day, selling for only 5 cents. His bookkeeper named this drink
“coca cola” after the first two ingredients. And the same distinctive script
he wrote it in is the same logo they use to this day.
In January 1893 coca cola was registered with the US patent office.
Later on in 1915 the root glass company created the famous contour
glass bottle for coca cola in 1915.in 1917 coca cola was found to be the
world’s most recognized trademark with a record of 3 million Cokes sold
per day. Unfortunately John Pemberton fell ill, and did not live to see his
product’s success.

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 Brand Ambassadors of the Company

Gautam Gambhir

Hritik Roshan Aamir Khan

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HISTORY OF COCA COLA
Early growth
In 1893 Candler registered coca cola as a patented trademark. He
also responded to growing concerns over the dangers of cocaine by
reducing the amount of coca in the drink to a trace. However, he kept
some coca extract in coca cola so the name would accurately describe the
drink. Candler only had a patent on the name, and not the drink syrup
that is, the drink’s base, containing all the ingredients minus the
carbonated water. He figured that keeping the coca in his formula would
legally allow the company to distinguish its drink from imitations. Other
companies also produced soda drinks made with kola nut extracts. in
particular, the Pepsi cola company and its cola of the same name would
become coca cola’s major competitor over the next few decades.

Candler also spent more than $11,000 on his first massive

advertising campaign in 1892.the coca cola logo appeared across the
country, painted as a mural on walls, displayed on posters and soda
fountains where the drink was served. And imprinted on widely
marketed, common household items, such as calendars and drinking
glasses. In addition, Candler was the first person ever to use coupons to
gain customers for a product. He distributed flyers offering free soda
fountain glasses of coca cola to people visiting his drugstore.

In 1894 the coca cola company opened its first coke syrup
production plant outside of Atlanta, in Dallas, Texas. That same year a
candy store owner in Vicksburg, Mississippi, installed bottling machines
and produced the first bottled coke. It had previously been sold only at

50
soda fountains. By 1895 the drink was sold in all American states and
territories.

In 1899 lawyers Benjamin Thomas and Joseph whitehead of

Chattanooga, Tennessee, bought the exclusive rights to distribute coke
syrup to bottlers throughout most of the country for only one dollar. At
the same time, Candler saw little profit in bottling, and was more than
willing to give up that part of the business.

In 1915 the root glass company created a contour glass bottle for
coke, its design based on the curvature of a coca cola bean. This bottle
design became a coke trademark worldwide. The same year, Candler
retired from the company. In 1919 Candler family sold coca cola to
businessman Ernest Woodruff of Columbus, Georgia, for $25 million.

War time developments

During world war2 (1939—1945), Woodruff also boosted coke’s
popular image in the United States by pledging that his company would
provide coke to every U S soldier. The company did not limit itself,
however, to only doing business that would increase its success in
America. In the period leading up to the war, between 1930 and 1936,it
had set up a division of the company in Germany, and it continued that
venture during the war. It recreated its image as a German company and
allowed the Germans to produce all but two, secret, coca cola ingredients
in their own factories.
In 1941 the German company’s president, Maqx Keith, developed
Fanta orange soda using orange flavoring and all the German –made
Coke ingredients. The coca cola company’s wartime efforts helped it

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expand its global market, often with the economic support of the U.S
government. By the end of the war in 1945, it had established 64
overseas bottling plants. That same year the company registered a patent
on coca cola’s popular nickname, Coke.

Post war growth

In 1955 Robert Woodruff retired as the Coca Cola company’s
president. Candler and Woodruff are remembered as the two most
important figures in the company’s early growth, both for their
contribution to the company and their considerable fortunes donated to
the city of Atlanta. After Woodruff’s departure, the company began to
diversify by producing new products, acquiring new business, and
entering new international markets. In 1960 the Coca Cola Company
purchased the minute maid corporation, producer of fruit juices, and
began offering coke in canes. Between 1960 and 1963 it also launched
for new soft drinks in the United States. Fanta an orange soda, Sprite, a
lemon lime soda etc. in 1964 the company acquired the Duncan foods
corporation. In 1967 it created the coco cola foods division by merging its
Duncan and Minute maid operations.

In the late 1960’s, coca cola faced difficulties in some of its foreign
markets. When the company built a bottling plant in Israel at the outset
of of the Arab-Israeli War, the government of all Arab league nations
banned the production and sale of Coke. A year later the company
withdrew from its market in India when Indian government requested
that Coca cola reduce its equity in joint ventures to 40 percent. The
company refused to relinquish so much control over those operations. In
1977 Coca cola began packaging Coke and other drinks in two liters

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plastic bottles. In 1982 the company introduced Diet Coke, which soon
became the best selling diet soft drink in the world.
In 1982 coca cola purchased the motion-picture company
Columbia picture industries, Inc, also known as Tri-Star Pictures, for
almost $ 700 million. Two years later, the company sold off its Columbia
holdings and other media acquisitions to Sony Corporation for over $1.5
billion.

Recent developments
In 1986 the Coca Cola Company consolidated all of its non
franchised U.S bottling operations as Coca Cola enterprises, Ink. The
new company began acquiring independent bottling companies, a
venture that grew in to the world’s largest bottler of soft drinks by
1988.While Coca-Cola Enterprises distributes over half of all Coca Cola
products in the united states, small franchise businesses continue to
bottle, can, and distribute the company’s drinks worldwide.

In 1987 the Coca Cola Company was listed in the prestigious Dow
Jones industrial Average index of stock market performance. Its stock is
traded on the New York stock exchange. Coca Cola and Pepsi Company
products occupied nine of the top ten spots in the U.S. At present Coca
Cola ranked first in soft drink sales, and the company earned almost 80
percent of its profit from international sales.

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EVOLUTION OF COCA COLA

Asa G. Candler, a natural born salesman, transformed Coca-Cola

from an invention into a business. He knew there were thirsty people out
there, and Candler found brilliant and innovative ways to introduce them
to this exciting new refreshment. He gave away coupons for
complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales bearing
the Coca-Cola brand. People saw Coca-Cola everywhere, and the
aggressive promotion worked. By 1895, Candler had built syrup plants in
Chicago, Dallas and Los Angeles. Inevitably, the soda's popularity led to
a demand for it to be enjoyed in new ways. In 1894, a Mississippi
businessman named Joseph Biedenharn became the first to put Coca-
Cola in bottles. He sent 12 of them to Candler, who responded without
enthusiasm. Despite being a brilliant and innovative businessman, he
didn't realize then that the future of Coca-Cola would be with portable,
bottled beverages customers could take anywhere. He still didn't realize it
five years later, when, in 1899, two Chattanooga lawyers, Benjamin F.
Thomas and Joseph B. Whitehead, secured exclusive rights from Candler
to bottle and sell the beverage -- for the sum of only one dollar.

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 Imitation may be the sincerest form of flattery, but The Coca-Cola
Company was none too pleased about the proliferation of copycat
beverages taking advantage of its success. This was a great product, and
a great brand. Both needed to be protected. Advertising focused on the
authenticity of Coca-Cola, urging consumers to "Demand the genuine"
and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to
assure people they were actually getting a real Coca-Cola. The Root Glass
Company of Terre Haute, Indiana, won a contest to design a bottle that
could be recognized in the dark. In 1916, they began manufacturing the
famous contour bottle. The contour bottle, which remains the signature
shape of Coca-Cola today, was chosen for its attractive appearance,
original design and the fact that, even in the dark, you could identify the
genuine article.
As the country roared into the new century, The Coca-Cola
Company grew rapidly, moving into Canada, Panama, Cuba, Puerto Rico,
France, and other countries and U.S. territories. In 1900, there were two
bottlers of Coca-Cola; by 1920, there would be about 1,000.

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 Perhaps no person had more impact on The Coca-Cola Company
than Robert Woodruff. In 1923, four years after his father Ernest
purchased the Company from Asa Candler, Woodruff became the
Company president. While Candler had introduced the U.S. to Coca-
Cola, Woodruff would spend more than 60 years as Company leader
introducing the beverage to the world beyond.
Woodruff was a marketing genius who saw opportunities for
expansion everywhere. He led the expansion of Coca-Cola overseas and
in 1928 introduced Coca-Cola to the Olympic Games for the first time
when Coca-Cola traveled with the U.S. team to the 1928 Amsterdam
Olympics. Woodruff pushed development and distribution of the six-
pack, the open top cooler, and many other innovations that made it
easier for people to drink Coca-Cola at home or away. This new thinking
made Coca-Cola not just a huge success, but a big part of people's lives.

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 In 1941, America entered World War II. Thousands of men and
women were sent overseas. The country, and Coca-Cola, rallied behind
them. Woodruff ordered that "every man in uniform gets a bottle of Coca-
Cola for 5 cents, wherever he is, and whatever it costs the Company." In
1943, General Dwight D. Eisenhower sent an urgent cablegram to Coca-
Cola, requesting shipment of materials for 10 bottling plants. During the
war, many people enjoyed their first taste of the beverage, and when
peace finally came, the foundations were laid for Coca-Cola to do
business overseas.
Woodruff’s vision that Coca-Cola be placed within "arm's reach of
desire," was coming true -- from the mid-1940s until 1960, the number
of countries with bottling operations nearly doubled. Post-war America
was alive with optimism and prosperity. Coca-Cola was part of a fun,
carefree American lifestyle, and the imagery of its advertising -- happy
couples at the drive-in, carefree moms driving big yellow convertibles --
reflected the spirit of the times.

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 After 70 years of success with one brand, Coca-Cola®, the
Company decided to expand with new flavors: Fanta®, originally
developed in the 1940s and introduced in the 1950s; Sprite® followed in
1961, with TAB® in 1963 and Fresca® in 1966. In 1960, The Coca-Cola
Company acquired The Minute Maid Company, adding an entirely new
line of business -- juices -- to the Company.
The Company's presence worldwide was growing rapidly, and year
after year, Coca-Cola found a home in more and more places: Cambodia,
Montserrat, Paraguay, Macau, Turkey and more.
Advertising for Coca-Cola, always an important and exciting part of
its business, really came into its own in the 1970s, and reflected a brand
connected with fun, friends and good times. The international appeal of
Coca-Cola was embodied by a 1971 commercial, where a group of young
people from all over the world gathered on a hilltop in Italy to sing "I'd
Like to Buy the World a Coke."
In 1978, The Coca-Cola Company was selected as the only
Company allowed to sell packaged cold drinks in the People's Republic of
China.

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 The 1980s -- the era of legwarmers, headbands and the fitness
craze, and a time of much change and innovation at The Coca-Cola
Company. In 1981, Roberto C. Goizueta became chairman of The Board
of Directors and CEO of The Coca-Cola Company. Goizueta, who fled
Castro's Cuba in 1961, completely overhauled the Company with a
strategy he called "intelligent risk taking."
Among his bold moves was organizing the numerous U.S. bottling
operations into a new public company, Coca-Cola Enterprises Inc. He
also led the introduction of diet Coke®, the very first extension of the
Coca-Cola trademark; within two years, it had become the top low-calorie
drink in the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a
new taste for Coca-Cola, the first change in formulation in 99 years. In
taste tests, people loved the new formula, commonly called “new Coke.”
In the real world, they had a deep emotional attachment to the original,
and they begged and pleaded to get it back. Critics called it the biggest
marketing blunder ever. But the Company listened, and the original
formula was returned to the market as Coca-Cola classic®, and the
product began to increase its lead over the competition -- a lead that
continues to this day.

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 The 1990s were a time of continued growth for The Coca-Cola
Company. The Company's long association with sports was strengthened
during this decade, with ongoing support of the Olympic Games, FIFA
World Cup™ football (soccer), Rugby World Cup and the National
Basketball Association. Coca-Cola classic became the Official Soft Drink
of NASCAR racing, connecting the brand with one of the world's fastest
growing and most popular spectator sports.
And 1993 saw the introduction of the popular "Always Coca-Cola"
advertising campaign, and the world met the lovable Coca-Cola Polar
Bear for the first time. New markets opened up as Coca-Cola products
were sold in East Germany in 1990 and returned to India in 1993.
New beverages joined the Company's line-up, including Powerade®
sports drink, Qoo® children's fruit drink and Dasani® bottled water. The
Company's family of brands further expanded through acquisitions,
including Limca®, Maaza® and Thums Up® in India, Barq's® root beer in
the U.S., Inca Kola® in Peru, and Cadbury Schweppes'® beverage brands
in more than 120 countries around the world. By 1997, the Company
already sold 1 billion servings of its products every day, yet knew that
opportunity for growth was still around every corner.

50
 In 1886, Coca-Cola® brought refreshment to patrons of a small
Atlanta pharmacy. Now well into its second century, the Company's goal
is to provide magic every time someone drinks one of its more than 400
brands. Coca-Cola has fans from Boston to Budapest to Bahrain,
drinking brands such as Ambasa, Vegitabeta and Frescolita. In the
remotest comers of the globe, you can still find Coca-Cola.
Coca-Cola is committed to local markets, paying attention to what
people from different cultures and backgrounds like to drink, and where
and how they want to drink it. With its bottling partners, the Company
reaches out to the local communities it serves, believing that Coca-Cola
exists to benefit and refresh everyone it touches.
From the early beginnings when just nine drinks a day were served,
Coca-Cola has grown to the world’s most ubiquitous brand, with more
than 1.4 billion beverage servings sold each day. When people choose to
reach for one of The Coca-Cola Company brands, the Company wants
that choice to be exciting and satisfying, every single time.

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CHAPTER – III

RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY

Scope of the Study

The study is exclusively conducted on the soft drinks industry to

analyze and obtain insights into the consumer buying behavior towards
soft drinks. It was carried out within city over a period of two weeks and
also to compare the leading brands in the soft drink industry. The
research also encompasses the usage pattern exhibited by the
consumers. 20 RESPONDENTS WERE SELECTED RANDOMLY. They
were asked questions and their opinions well received in writing in every
questionnaire.

Objective of the Study

 To determine the factors that led the consumer to use a particular

brand of soft drinks.

 To determine which brand of soft drink is widely used in city.

 A critical comparison of the leading brands, namely Coco cola and

Pepsi.

 To analyze the various factors that influences the buying behaviour

with respect to soft drinks.

 To evaluate the consumption pattern of consumers with respect to soft

drinks.

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SAMPLE DESIGN

Type of sampling – Non random sampling has been administered in the

project which is arbitrary and subjective. Each member does not have a
known non-zero chance of being included. Moreover Judgment &
Convenient study was used in sampling method

Sample Size - A sample of 20 respondents was considered as sample

size for the research. The sample size is selected by considering
characteristics of interest and objectives of the study. Their suggestions
and recommendations duly recognized.

DATA COLLECTION

Primary Data - The main tool that has been used in data collection is
questionnaire that has been constructed for this purpose. A respondent
was interviewed and data was collected.

Secondary Data - Secondary data was collected from various books;

journals research papers from magazines and also the internet.

Data Analysis
The entire data analysis was done through bar diagrams, pie charts, and
through percentage method.

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 CHAPTER IV

ANALYSIS &
INTERPRETATION

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Q1. Which of the following is your favorite brand? (Any One)

Coca Cola Pepsi Sprite Mirinda

40 30 10 20

Interpretation:
From table it is clear that maximum no of respondents are prefer the
brand of Coca Cola soft drink and least are preferring the soft drink of
Sprite .

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Q2. Why do you prefer it?

Reasonable Price Taste Brand Influence of

Recognition celebrities
15 55 25 5

Interpretation:
From table it is clear that maximum no of respondents prefer the product
due to its best taste.

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Q3. For how long have you been consuming your favorite brand of
soft drinks?

> 1 year 1-5 years 5-10 years < 10 years

0 25 45 30

Interpretation:
From table it is clear that maximum no of respondents are using their
favorite soft drinks from between 5 to 10 years.

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Q4. In what quantities do you purchase your soft drink?

200 ml 300 ml 500 ml 2 Ltrs.

15 15 30 40

Interpretation:
From the above chart it is clear that maximum number of respondents
prefer to buy the product with 2 liters quantity packing.

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Q5. What kind of promotional Schemes do you prefer?

Free Gifts Free Samples Extra Quantity Cash Discounts

20 10 55 15

Interpretation:
From the above chart it is clear that the maximum respondents prefer to
buy the product with Extra Quantity with same price.

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Q6. Would you like to shift your Brand?

Yes No
40 60

Interpretation:
From the above chart it is clear that maximum no of respondents don’t
want to change their brand soft drink.

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Q7. Who influence your soft drink buying decision?

Friends Family Advertisements Celebrities

25 20 40 15

Interpretation:
From the above chart it is clear that maximum no of respondents are
influenced by the advertisement to buy the soft drink of particular brand
followed by friends, family & celebrities.

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Q8. Which amongst these is an effective media for advertising soft
drinks?

Television News Papers Hoardings Magazines

65 20 10 5

Interpretation:
From the above chart it is clear that Television is the effective media to
advertise the product.

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Q9. Have you ever faced any problem with your product?

Yes No
25 75

Interpretation:
From the above table it is clear that maximum no of respondents doesn’t
face any such type of problem with their softdrink.

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Q10. Are you satisfied with your product?

Yes No
80 20

Interpretation:
From the above table it is clear that maximum no of respondents are
satisfied with the product which they are presently using.

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 CHAPTER V

IMPLICATION &
LIMITATIONS

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 IMPLICATION & LIMITATIONS

Limitations of the Study

 The sample for the study is taken from only 20 respondents. This can
act as a constraint in the study.

 Descriptive study tends to get cumbersome and they seem to be more

complex then they appear.

 The Area undertaken in research was very limited. But to do a

complete research a wide area is required, so the area is also a
constraint of the study.

 The time of research was short due to which many fact has
been left untouched.

 While collecting data some of the respondents are not willing to

fill the questionnaire, so they might not fill their true behavior.
This can also be a constraint of the study.

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CHAPTER-VI

50
SUGGESTIONS &
RECOMMENDATION
S

50
SUGGESTIONS & RECOMMENDATIONS

Based on the analysis and the views of respondents we can make the
following suggestions: -

 In today’s competitive market the various soft drink companies should

maintain and give priority to quality and taste of the product which is
the primary consideration that customers sort while purchasing a soft
drink.

 Advertisement definitely influence the consumer’s buying behavior

towards soft drinks. Thus more and more advertisement in boosting
up the sales of the soft drinks.

 Packaging is another important factor that influences the success or

failure of a brand, therefore bottles should be made colorful and
attractive.

 Soft drinks companies should concentrate on distribution channel

and should provide various kinds of promotional schemes like Extra
Quantity which is at utmost preference, while free gifts, cash
discounts and free samples are other promotional schemes which
helps in the promotion of the particular brand.

 According to respondents Electronic media is the most effective media

for advertising soft drinks.

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 BIBLIOGRAPHY

BOOKS

 Marketing Management, Kotler Philip, 12th Edition, Pearson

Education.
 Marketing Research, G.C Beri, 3rd Edition, Tata McGraw Hill.
 Research Methodology, C.R Kothari.
 Consumer Behaviour, Schiffman & Kaunak, 9 th Edition, Pearsion
Education.

MAGAZINES & JOURNALS

 Business standard(News Paper)

 Indian Journal of Marketing, March 2006, Article By Dr.Banusmathy
 Business World, November 2007
 Business India, Advertising

WEBSITES
 www. Wikipedia.org
 www.thehindubusinessline.com/iw/2006/06/11/images/200606110
1041301.jpg
 http://images.google.co.in/images?
um=1&hl=en&q=brand+ambassadors+of+coca+cola&btnG=Search+Im
ages
 www. consumerpsychology. Com

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 http://images.google.co.in/images?
hl=en&q=Evolution+of+Soft+Drinks&start=21&sa=N&ndsp=21

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