1. 2. 3. 4. 5. 6. 7. 8 9. 10. History India’s History General Information Industry Overview Indian Contact Board of the Directors Driving success Mission, Vision & Value International Operation Organization Structure 4 5 6 7 8 9 10 11 12 13

Page No.

10. 11. Marketing Introduction Marketing Mix 15 17

12. 13. 14. 15. 16. 17. 18. Product Product Levels Product Line, Stretching & Filling Picture Gallery Product Life Cycle Production Department Water Treatments 19 24 26 28 30 31 32

19. Price 34


20. 21.

Pricing Strategies Characteristics of Price

37 38

22. 23. 24. 25. 26. 27. 28. Promotion Place 40 43

EVALUATION OF MARKETING MIX Case Study Segmentation Targeting Positioning Conclusion Bibliography 46 51 54 58 59




The world of Coca-Cola Atlanta and trace the history of the world’s most popular soft drink. You will journey more than 100 years into the past and explore the future of the magical story of Coca-Cola. DR.JOHN STYTH PEMBERTON first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia. It was of 1886 when the pharmacist concocted Caramel colored Syrup in a three legged brass kettle in his backyard. He first “distributed” the new product by carrying Coca-Cola in a jug down the street to Jacob’s Pharmacy. For five percents consumer can enjoy a glass of Coca-Cola at the Soda foundation. Weather by design or accident, carbonated water was teamed with the new syrup producing a drink that was proclaimed “delicious and refreshing”. Dr. Pemberton’s partner and bookkeeper Frank M Robinson suggested the name and planned “Coca-Cola” in a unique flowing script that is famous worldwide today. Mr. Robinson thought the two companies would look well in advertising. In 1886 sales of Coca-Cola averaged nine drinks per day. That first Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the No. 1 soft drinks brand ever since effort his efforts. Dr. Robinson grossed 50 dollars and spends 73.96 dollars in advertising. By 1891, Atlanta entrepreneur as a G Candler had acquired complete ownership of the Coca-cola business. Within four years, his merchandising flair helped expand consumption for 25 million dollars. Robert W Woodruff became president of Coca-Cola Company in 1923 and his more than six decades of leadership took the business to unraveled height of commercial success making Coca-Cola an institution the world over. So this is the brief historical background of Coca-Cola Company.

India’s History


Coca-Cola India has made significant investments to build and continually improve its business in India, including new production facilities, waste water treatment plants, distribution systems and marketing equipment. During the past decade, The Coca-Cola System has invested more than US $1 billion in India, making Coca-Cola one of the country’s top international investors and in 2003, Coca-Cola India pledged to invest a further $100 million in its operations. The Coca-Cola System in India includes 24 Company-owned bottling operations and another 25 franchisee-owned bottling operations that directly employ 5,500 local people and create jobs for another 150,000. Virtually all the goods and services required to produce and market Coca-Cola products locally – including Kinley water brand launched in 2000, Shock, an energy drink launched in 2001, and Sun fill, our first powdered concentrate, also launched in 2001 – are made in India, ensuring that the benefits of such enterprises remain in the local communities in which they operate.

1. Name of Unit : 5 “The World of Coca-Cola”

Subsidiaries : : : : : : : : : : 300 : Private Limited Company Beverage Industry March 1998 mfernandes@apac. Registered Office 11. 8. GUJARAT 3. Address of Unit : Hindustan Coca-Cola Beverages Private 02694-84386/87/77585 www.2. Capacity 13. Daft INDUSTRY OVERVIEW 6 .coca-cola. District: Kheda. Chairman : Douglas N. Website 9. Establishment Year 6. Telephone Nos. Company Type 4. E-mail 7. 14. Type of Industry Atlanta Goblej 55000 cases/day Coca-cola amatil ltd. Village: Goblej. Coca-cola bottling of Los Angeles Coca-cola enterprise Inc.ko. Total Brands 12. Corporate Head Quarter 10.

you will be taken on virtual journey from invention of Coca-Cola by Dr. With exhibits that appeal to both young and old.Coca-Cola is named as a refreshing soft drink which gives now freshness to work coca-cola has made necessary changes according to the demand of people. while you listen to songs about Coca-Cola playing from the authentic 1930 jukebox. the attraction boots approximately 1200 Coca-Cola artifacts in addition to interactive exhibits and video presentation. From there move at your own pace through fascinating galleries showcasing the rich heritage and global reach of Coca-Cola. where an old-fashioned “Soda Jest” demonstrates how an early Coca-Cola was prepared. Experience the nostalgia of the 1930 Replica Barns Soda foundation. INDIAN CONTACT 7 . John Pemerton in 1886 to its present popularity through out the World. where on coverage of 13000 of the Coca-Cola Company’s beverages are consumed every second everyday. The excitement begins the moment you walk through the door pass under our landmark neon “Spectacular” Coca-Cola sign and find your self standing in a three –story atrium hung with flags representing over 200 nation and territories where Coca-Cola is available.

Hindustan Coca-Cola Beverages for 40 million. Kinley Soda. Maaza. Coca-Cola India’s extensive bottling network of more than 50 bottling units. The Coca-Cola Company provides education of the primary level to underprivileged person as well as computers and training for teachers over 1800 students per year have benefits from the Coca-Cola Company.Coca-Cola the world favorite soft drinks returned to India in October 1993 with its launch in Agra.5% market share and acquiesces let position. The leading producer and marketer of soft drinks in India. Thumps up it at no. The Coca-Cola Indian System is the largest Soft Drink producer in the Country with a work force of over 15000 people. Thums-up. They offer different types of brand to the Indian Territory viz.5% Pepsi-Cola’s 23. Crush. In India Coca Cola soft drinks remains a distant 3rd.. Now Coca-Cola has become a very popular in Indian Territory. 8 . with an estimate market share of 16. E. the Company planned to sell 49% of it’s Indian bottler. Coca-Cola. to the Indian Consumer through a network of 300000 retail outlets spread across the country.2 on Feb 28. Fanta. Diet Coke and Canada Dry. Sprite. Coca-Cola has total 50 plants in India in which Coca-Cola owns 37 plants and 13 plants are given to Franchisee. Kinley Water.Neville Isdell Chairman.

Allen & Company Incorporated Donald F. Delta Air Lines. Georgetown University 9 . Keough Chairman of the Board. and Chief Executive Officer. and former Chairman of the Board. Inc. Black President Hearst Magazines Barry Diller Chairman of the Board and Chief Executive Officer Inter Active Corp (IAC) Donald R. McHenry Distinguished Professor in the Practice of Diplomacy and International Affairs at the School of Foreign Service. President. Allen Advisory Director. Allen President and Chief Executive Officer Allen & Company Incorporated Ronald W.Board of Directors. Cathleen P. & Chief Executive Officer The Coca-Cola Company Herbert A.

The results have led us to a holistic vision that we are working to accomplish over the next 10 years.We're reinventing our Company to reach our true potential. Vision & Values Mission 10 . and on a global basis. Our Diversity "The Coca-Cola Company operates in more than 200 countries. Our mission is to create a growth strategy that allows us to bring good to the world -.Neville Isdell Mission. Chairman discusses sustainable growth and water stewardship at The Nature Conservancy. Our greatest opportunity is to maximize this asset. we have the most inclusive workforce in the refreshing people every day and inspiring them with optimism through our brands and our actions." . Our Vision We asked 150 of our top leaders to remains the Coca-Cola Company. The Coca-Cola Company receives the Corporate Citizenship Award from the Committee for Economic Development.

Vision To achieve sustainable growth. • Profit: Maximizing return to shareowners while being mindful of our overall responsibilities. Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs. Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference. we do well" International Operations 11 .. it’s up to me" "Leverage collective genius" "Seek. we have established a vision with clear goals. through our brands and our actions. in body. create.. • People: Being a great place to work where people are inspired to be the best they can be. imagine.. • To Create Value and Make a Difference. delight" "What we do. everywhere we engage.. To Inspire Moments of Optimism. mind. and spirit. • • • Values We are guided by shared values that we will live by as a company and as individuals. • • • • • • • Leadership: Passion: Integrity: Accountability: Collaboration: Innovation: Quality: "The courage to shape a better future" "Committed in heart and mind" "Be real" "If it is to be...Everything we do is inspired by our enduring mission: • • To Refresh the World.

S. Coke established a dominant presence in international markets. Coke’s and Pepsi’s market shares in selected countries were as follows: Coke U. With government assistance. At the request of the U.) As of 1999.Coke internationalized itself during World War II. (The fact that for many years Pepsi focused very little on international markets also helped.government.S. Coke set up plants wherever American soldiers were stationed. With that head start. the company promised to make Coke available at 5 cents a bottle (the normal U. price at that time) to any American soldier anywhere in the world.S. Canada Mexico Germany China India Pepsi 31% 35% 19% 8% 0% 16% 44% 44% 39% 70% 56% 34% 56% South Africa 97% ORGANISATION STRUCTURE 12 .

Workers and other members follow the above organization chart. 13 . the flow of organizational and more understandable. Industry private basically follow line structure of organization. The director of the company chairman. Marketing Manager Production Manager Finance Manager Workers workers Clerk As above shown chart was the organization structure of coca-cola.Boards of Directors Managing Directors Chief Executive Officer General Manager. employee. This simple flew organization avoids complexity and helps to make the work more efficient.

this 14 . their marketing partners and the world around them. Fortunately. It viewed marketing as customer care.Today smart marketers of all kinds are talking advantage of new opportunities for connecting with their Customer. The old marketing thinking saw marketing as little more than selling or advertising.

15 . Marketing theory and practice is justified in the belief that customers use a product or service because they have a need. a business will not usually prosper long-term. but are willing to buy. and then builds the product or service. Essentially. Marketing tends to be seen as a creative industry. A market-focused. In common words marketing are the process of selling something at a shape or market place. organization first determines what its potential customer’s desire. Marketing management is very important and essential part of the management in every unit or firm.old marketing thinking is now giving way to never ways to thinking. the mix of the four "Ps" must reflect the wants and desires of the consumers in the target market. It is also concerned with anticipating the customers' future needs and wants. marketing is the process of creating or reorganizing an organization to be successful in selling a product or service that people not only desire. often through market research. WHAT IS MARKETING? Marketing is a societal process that is needed to discern consumers' wants. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. For a marketing plan to be successful. Marketing is fundamental to any businesses growth. or customer-focused. which includes advertising. and to mold the consumers toward the products/services. The marketing teams (Marketers) have the task to create the consumer awareness of the products/services through marketing techniques. or because it provides a perceived benefit. unless it pays due attention to its products/services and consumers' demographics and desires. focusing on a product/service to those wants. Today’s smart marketing companies improving their customer knowledge and finding innovative ways to capture and keep these customers. distribution and selling.

place and promotion that the firm blends to produce response. it wants in the target market. The major marketing management decisions can be classified in one of the following four categories: • Product 16 . tactical marketing tools product. Marketing management is the practical application of this process. Marketers hope that this process will give them a sustainable competitive advantage.Marketers depend on marketing research. The offer is also an important addition to the 4P's theory. to determine what consumers want and what they are willing to pay for it. The Marketing Mix The set of controllable. price. both formal and informal.

The marketing mix is portrayed in the following diagram: 17 .• • • Price Place (distribution) Promotion These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.

They offer non-alcoholic soft drinks. tea & coffee. For a Coca-Cola company we can say soft drink is as product.Introduction Product means the goods and services combination. acquisition. Product is a major part for 18 . use or consumption that might satisfy a want or need. The Coca-Cola is a world’s biggest soft drink maker who offers number of products to the people. In other words we can say product means anything that can be offered to market for attention. The company offers to the target market.

and ideas. Coca-Cola has main two types of product soft drink and mineral water. etc. an organization offers to its market is not simple a bar of soap. Under soft drinks category there are different products like: Thums-Up. use. persons. Limca. Kinley water is available in different packages like 1 liter. Limca. The company has introduced his coffee with the brand name GEORGIA. 2 liter. Now Coca-Cola considering a world’s largest soft drink maker as compared to other company like Pepsi. or consumption that might satisfy a want or need. Fanta. 19 . acquisition. Products can be physical objects. For product development Coca-Cola try to innovate new things in product improvement program. a rental car or a charitable cause. A product is anything offered for attention. So product is a thing which offers to market for different objectives. Same way Limca is a taste of lime.the company like wise for Coca-Cola there are so many products by which they grow up speedily or by which company can increase their sale with the increase in production of different products. Diet Coke. In that we can say that the wide range of tangible and intangible benefits that a buyer might gain from a product after purchasing it. Now Coca-cola introduced a new category of product of tea and coffee in India. Maaza is available in mango flavors. in the nuts and bolts sense. Sprite. The product. organizations. etc. As with so many others marketing element there is more to the product than meets the eye. places. and Maaza. Fanta. etc. but it dose not have to be something tangibles. etc. It can be regard offered to these filling to pay for it. 10 liter in water. Now days for Indian territory Coca-Cola is try to maintain their level of sales because they faces problem of pesticides. now Coca-Cola introduced tea and coffee for the people who love tea or coffee in different flavors. 5 liter. Coca-Cola is a company who makes a prestige in all over the world by their product. and in mineral water category there is Kinley water. services. Coca-Cola tries to introduce that product according to Indian flavors like Maaza. So they get low sale. A product may be a thing. which is available in McDonald’s and in other shopping malls.

For Indian territory Coca-Cola offers different types of product according to aged groups and gender. The main drinks which offered to Indian people by the Coca-Cola such as:  Coca-Cola  Fanta  Limca  Diet Coke  Sprite 20 . Coca-Cola has total 300 varieties for the world. It means what type of different products offers by the company to the consumers.Product Consist Variety Design Brand Name Sizes Returns Quality Features Packaging Services Warranties Product Variety Variety is a sub part of product. They offer different types of drink according to atmosphere and nature of people of particular country.

because the outlook always attracts the consumer. Consider the many possible terms taken by products such as aspirin. The marketer must first choose a quality level that will support the products position in the target market. So the design of Coca-Cola is an important part for the marketing strategy. Coca-Cola offers different type of bottles. The ability of a product to perform its function it includes the product’s overall durability. in physical structure of a product. reliability. Design Design is also play an important role in today’s competitive age. the shape. repair and other valued attributes. The company also introduced a tea and coffee for Indian people. The company tries to make an attractive bottling style. Features Many products can be differentiated in form. tins and there are in different shapes. Here product quality means performance quality. Design gives a new look to the product and the Coca-Cola Company was accept this policy. case of operation. Coca-Cola Company also its own features. Brand Name 21 . which shows as the first. Product quality has two dimensions – levels and consistency in developing a product. the size. The design of Coca-Cola bottles is attractive. precision. Quality Quality is one of the marketer’s major positioning tools. etc… Which we can put in other part of marketing mix. So there are number of products which are offered to market by the Coca-Cola. Maaza  Rim Zim  Kinley Water and Soda.

A brand is a name. or a combination of these. Some products small size and some products are middle size like TV. First the company manufactures a product then they give to the whole seller and whole seller gives to distributors and finally the customer get soft drink. 22 . It may substantially reduce the risks the buyer receives to be associated with the purchase in general the warranty communicates. Services Service is any activity or benefit that one party can offer to another That is essentially intangible and does not result in the ownership of anything. symbol. or design. and some are very large size like refrigerator. and to differentiate them from those of competitors. Brand Name helps consumer identifies products that might benefit them. Radio etc. In other words. Sizes Size is also making an important role for every product. So the services of the Coca-Cola are very best of the world. intended to identify the goods or services of one seller or group of sellers. term. In coco-cola also except some different types of schemes & now they give 500 ml bottle they give one PERK free & another they give 1. Returns In today’s competitive & high priced age every customers wants to something returns purchases any products. a brand identifies the maker or seller of a product. Warranties A product warranty community a written guarantee of a products integrity and outlines the manufacturers responsibilities of repairing or replacing defective parts. So that types of advertisement. sign. In the Coca-Cola there is a different variety and their different sizes in the market. A message that suggest product quality and a reduction of purchase risk.5 ml bottle they give free off 5 Rs.

Most marketers however. In the types they also give something returns to their customers. treat packaging and labeling as an element of product strategy. place and promotion. Many marketers have asked packaging a fifth along with price. Core Product/Benefits The service or benefit the customer is really buying “rest and sleep”. Bottle washer infeed Inspection Forkifls [Start] pre- Empty Bottle Inspection Trucks Filler crowner’s Full product Inspection Packaging Product Levels In planning its market offering. the marketer needs to address five product levels. as Coke bottle and the leggy container are world famous. Some package such. Marketers must see themselves as benefits providers. Augmented Product 23 . Packaging Most psychical products have to be packaged and labeled. and the five constitute a customer value hierarchy. Each level adds more customer value. product. The purchaser of a drill is buying “holes”.They want increase their products give the different schemes.

which encompasses all the possible augmentation and transaction the product or offering might undergo in the future. brand positioning and competition take place at this level. in India. desk. Here is where company search for new ways to satisfy customers and distinguish their offer. there is a visible move by some companies to augment their products and services by providing superior customer experience. A customer of Coca-cola is need a cleaning bottles as well as drink also. However. bathroom. Packaging: protects and promotes. include combinations of product attributes. Thus a hotel room includes a bed. dresser.  Expected Product A set of attributes and condition buyers normally expect when they purchase this product. the marketers prepare an augmented product that exceeds customer expectation. In developed countries. Actual Product The actual product is the tangible product or intangible service that serves as the medium for receiving core product benefits: Quality: Features: Styling: refers to product performance. refers to the design.  Potential Product At the fifth level stands the potential product. and closet. 24 . Brand Name: it helps consumers position and identify the product. aesthetic.At the fourth level. or ergonomic aspects. towel. the marketer as to turn the core benefits into a basic product.  Basic Product At the second level.

Product Carbonated Non-carbonated Concentrated Beverages hot Water Coke diet Sprite Fanta Ready to drink Pulpy orange Georaza coffee Maaza Kinley PRODUCT LINE STRETCHING 25 .

Reason of filling: There may be served reasons for product line filling  To reach to the extra profits   To satisfy dealers Using excess capacity etc. Product line strategy occurs when a company lengthens its product line beyond its current range. Companies in the middle range of the market may decide to stretch their lines in both directions. Strategy upward 2. PRODUCT LINE LENGTH Coca-cola’s length tends to be more specific and systematic. Length of product can be increased by stretching its line and by filling its line.e. It covers all typs of customer i. In both directions. Product line length is influenced by company objectives and resources. PRODUCT LINE FILLING Adding more items within the present range of the line. of items in the product line. Company at the lower and of the market may want to stretch their lines upward. Coca-cola stretched 26 . different people demanding different flavors.The major product line decision involves Product Length the no. Many companies initially locate at the upper end of the market and lower stretch their lines downward to plug a market whole that otherwise worried attract a new competitor or to respond to a competitor’s attract on this upper end. Strategy downward or 3. 1.

when it saw PEPSI Co. when it observed PEPSI Co. Similarly. introduced its Mountain Dew (CHEETA BHE PEETA HAI) So due to this attack on the upper end coca-cola stretched its line downwards.its line by adding shock in the field that is in product line. Its current range was confined to seven products till year 2000. attacking on its lower and by producing substitute flavored soft drink like MIRINDA orange and lemon MIRINDA against it’s MAZZA and LIMCA. mineral water with antioxidants. it stretched its line. The company stretched downward by providing thirst quenching soft drink ‘SUNFIL’ with 8 vital vitamins and other nutrients. upward and introduced premium. When coca-cola introduced “SHOCK” against it Pepsi Co. entering and attacking on it’s upper end. Product’s Gallery 27 .

28 .

if at all. 90% of the products we will be using five years from now do not currently exist. We would be hard-pressed to identify any product older than five years that exists today in its original form. Although many simple products appear to change little. It is a generally accepted statement that 90% of the products we use today. 29 . we can all identify products that have changed from their original form and/or content. with today's rapid changes in technology.Product Life cycle A product has a finite life. almost every product will undergo some sort of modification during its lifetime. It did not exist in their current form many years ago. Whether this statement is entirely accurate or not. closer scrutiny would show that at least one aspect of the product has changed over time. And. Similarly.

So.This idea is demonstrated by the Product Life Cycle (PLC) concept. the Ford Taurus). automobiles).g. Production Department Manufacture Process Raw Water Storage Soft Water Storage Dematerialize Storage Laboratory Test Syrup Preparation Syrup Storage 30 . product classes (e.g. even though the product may have changed. the brand tends to remain constant. Perhaps the best way to achieve this is through the use of brands. as this evokes trust and promotes routine purchase behavior. or a particular brand (e. station wagons).g. consumer-tested product. manufacturers want to establish the appearance of offering a longstanding. product forms (e. Of course. The PLC can be applied to specific industries (e. which shows the path a typical new product takes from its inception to its discontinuation.g. transportation).

clay and any other suspended matter in the water. Microbial matter (including bacteria. yeast. Contaminants commonly removed by this process include: Dirt. 31 . This treatment ensures the destruction of micro-organisms including pathogens and oxidation of heavy metal ions and organic impurities. protozoa). moulds. Heavy metals and compounds which may cause an off-taste. [2] The second step is the filtration at the molecular level. virus.Bottling Washing Bottling Inspection Syrup Filling Water Filling Bottle Sealing Final Inspection Final Arrangement of Bottle Water Treatment [1] The first step in the manufacturing of soft drinks is the disinfections of water using the globally approved procedure of chlorination. which is achieved either by coagulation/flocculation or reverse osmosis.

off-taste and odourcausing compounds using the principle of absorption. colloidal materials and suspended particles are removed by settling plus enhanced filtration through multi-media. which is passing water through high efficiency 5-micron filters to ensure every drop of treated water is free from any activated carbon fines and is safe for use in beverages. The granular activated carbon.When coagulation/flocculation is used. color. alkalinity reduction may also be achieved by lime softening or ion exchange filters. with its large and porous surface area. [3] The third step to stop potential contaminants is water purification using granular activated carbon filters. [4] The last step is polishing filtration. If needed. 32 . ensures effective removal of trace levels of organic compounds (including pesticides and herbicides).

financing. It is determined by a number of factors including market share. product identity and the customer's perceived value of the product. Price List Price Discounts Allowances Payment Period 33 .PRICE Introduction The price is the amount a customer pays for a product. competition. Pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price. material costs. but also discounts. The business may increase or decrease the price of product if other stores have the same product. and other options such as leasing.

In the modern life everyone wants to get something more in the life.List Price In setting price many marketing start with the basic price quote called a list price. when a buyer makes a large quantity purchase or for another reason many markets adjust price with discount or rebates for examples the list price when merchandise is out of season or moving slowly. anticipation discounted. So every are go there 34 . Price adjustment can be made when the season changes. Like in sale 1 shirt per 1 (unit) 1 shirt free. it is common for list price to be adjustment are discount. Discounts In many industries . There are different types of discounts like cash discount. quantity discount. reduction from the list price common discount schemes are notice that each discounting technique provides an incentive to potential buyers but also yield some advantage.

and buy it in the same way in the winter season. gifts to the customers while purchasing the product During summer season. they give 45 kg per 1 perk free so we can say that give discount in there verity products. Sr. Payment period Payments of the money are not taxed. Some their retailer are paid half amount when they give the order & half after the selling the newspaper and some retailers give their whole amount after selling the newspaper. 35 . No 01 02 03 04 05 Particular Coca-Cola ‘ThumsUp Fanta Limca Maaza 200 MTI 5 5 5 5 6 Rs Rs Rs Rs Rs 300MTI 5000MTI 1. when the demand of coca-cola increases company offered gifts.5 LITER 10 10 10 10 10 Rs Rs Rs Rs Rs ‘ — 15 10 15 15 15 Rs Rs Rs Rs Rs 30 38 33 38 38 Rs Rs Rs Rs Rs Allowances The relationship with only public is not only for the any industry or firm but the relation between employ and boss is also good for company are good their is never create any internships problem in the company. Discount means some gift or cut price provided to the customer or retail while purchasing the product. The Coca-cola company provided discounts i.e.

and/or as competitors threaten to introduce similar products.of-season sales vs. Several industries use this pricing strategy very effectively. that may (or may not) be protected by a patent. and slowly lowering them over time to maximize profits at every price-sensitive layer in the market. Examples include: fashion (designer originals and beginning. copycat designs 36 . As initial sales slow down.Pricing Strategies for New Products Companies bringing out an innovative product. They can choose between two strategies:  Market skimming pricing  Market penetration pricing Market Skimming Pricing: Skimming" refers to setting initially high prices. the price is lowered just enough to make it worthwhile for the next segment to buy. face the challenge of setting prices for the first time.

to attract a large number of buyers and win a large market share. Market Penetration Pricing: "Penetration" involves setting a low initial price to enter the market quickly and deeply -. All profit organizations. Unlike product features and channel commitments. all other elements represent costs. paperback books). publishing (hard cover vs. and sports equipment (new golf club innovations are slowly reduced in price each season as new models are introduced). 37 . price is the sum of all the values that consumers exchange for the benefits of having or using the product. CHARACTERISTICS OF PRICE  Price is the only element in the marketing mix that produces revenue. allowing a further reduction in price. In the narrowest sense. must set prices on their goods or services. price is the amount of money  charged for a product. price can be changed quickly. as the company moves quickly down the production experience curve.  Price is also one of the most flexible elements of the marketing mix.  The resulting high sales volume often means lower costs. More broadly.  Production and distribution costs must fall as sales volume increases. and many non-profit  organizations.and end-of-season sales).  Several conditions favor setting a low price:  The market must be highly price sensitive so that a low price produces more market growth. particularly in the short term through allowances and discounts.

However.  Prices that are not varied enough for different products. 38 . price has been the major factor affecting buyer choice. and with commodity products. Pricing that is too cost oriented. many number one problem facing many marketing executives. non-price factors have become more important in buyer-choice behavior in recent years. companies do not handle pricing well. among poorer groups. Prices that do not take the entire marketing mix into account. Historically. different market segments & different purchase occasions. This is still true in poorer nations. pricing and price competition is the Yet. At the same time.

that is. aware of their product or service. the communication of information about the product with the goal of generating a positive customer response. In the present market place.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget The ‘Promotion’ is what many of us commonly mistake as the complete meaning of Marketing. a 39 . promotion represents the various aspects of marketing communication. awareness is not enough for a product to sell. Marketing communication decisions include: • • • • • • Promotional strategy (push.Promotion In the context of the marketing mix. This refers to the methods used by marketers to make customers. pull. etc. With increased competition.

30 from Rs. short tem designed to stimulate quicker of greater purchase of particular or service by consumers or a trade. Coco-cola in bottles now they give in so the people attract the soft drinks and buy it so the company sales are increase. which is used to increase the sales. where as advertising and personal selling offer reason to buy a product or 3er vice.i. Company offered this type of sales promotion during park season. Extra amount of beverages are provided at same Now in off-season coca-cola has reduced price of 1. influence. Sales Promotion Sales promotion consists of a diverse collection of incentive tools.e. These gifts are mentioned inside the crown of the bottles. Sales promotion is a short-term objective. and hence a comprehensive list of all available techniques is virtually impossible (since original sales promotions are launched daily). In order to increase the sales of the coca-cola. usage or trial of a product or service Often they are original and creative. Sales promotion made by the coca-cola company is the discount given on the purchase of its beverages. Advertising and personal selling often work closely with another promotion tools. The most commonly used methods of promotion are advertising. from March to May. Sales promotion consists of short terms incentive to encourages the purchase or sale of a product credit services. Sales promotion is any initiative undertaken by an organization to promote an increase in sales. mostly.5 to Rs. using sales force. The sales promotion invites and rewired quick response Advertising says “Buy our product” but sales promotion says “By it. sales promotions and increasingly telemarketing. It has come out with following sales promotion activity at present.35 40 . During these period prices of large quantities coca-cola are decreased sometrnes gifts for free trips are mentioned. instigate and sometimes even inveigle a potential customer into making a purchase. now”. It effects is for a short term only and dose not builds a long-term brand preferences.marketer has to inform.

However. 41 . companies are sensitive to the high cost and rising cost. Sales forces US firms spends over $140 billion annually on personal selling more then they spend on any other promotional method. So company should put good relationship with the public. In the company they must have to good relationship with the public. Sales forces are found non-profit as well as for profit organization collage requites are the university’s sales force firm. Traditional mass media television and magazines are most commonly used. suppliers and dealers but it must also relate to a large number of interested public. If they don’t do this types of relation than no one take this product and company will go in less.Advertising Advertising includes any information or persuasive message carried by a nonpersonal medium and paid for by a sponsor above product is in the same way identified in the message. A public confucilicute or impede company’s ability to achieve its objectives. Public Relation No only must the company relate constructively to customers. it saves as a substitute for a sales person talking to an individual prospect. No one devotes he importance’s of the sales forces in marketing meet.

and levels of service. The distribution system performs transactional. or exclusive distribution). selective. warehousing. Distribution decisions include market coverage. order processing and transportation. Meaning Place includes all company activities involved in making the product available to target consumers. the extent of market 42 . and facilitating functions. distribution centers. Place is about getting the products to the customer. inventory management. market coverage (inclusive. logistics. It includes: channels of distribution. channel member selection. logistical.Place Introduction Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. Some examples of distribution decisions include distribution channels. specific channel members.

retail locations. and via the Internet. and the management of inventory. in consumer markets. they are part of every channel. and many other products sell their goods directly to large retailers such as Wal-Mart and Sears. Lands' End sells direct through mail order. which then sell the goods to final consumers. managing discrepancies of quantity and assortment. Because the producer and the final consumer both perform some work. Ultimately. For example. It contains one intermediary level which. Each layer of marketing intermediaries. 43 . by telephone. Channel 2 called indirect marketing channels. the makers of televisions. and logistics. For example. Coverage Distribution channels can be defined by the number of levels involved. cameras. is typically a retailer. as depicted below: Channel 1 called a direct marketing channel. Place is involved in making the product convenient for the target customers to purchase. It consists of a company selling directly to customers. transportation. We use the number of middlemen to indicate the length of a channel. furniture. tires. has no middlemen.coverage." that performs some work in bringing the product and its ownership closer to the final buyer is a channel level. or "middlemen.

44 .

EVALUATION OF MARKETING MIX Marketing is the role used by the business to plan. promote and distribute products/services to individuals. Coca-Cola has a large share of the cola segment .holding approximately 85 per cent. The Coca-Cola 45 . The Coca-Cola Company's marketing includes: (I) Situational Analysis (ii) Target Market (iii) Objectives/Goals (iv) Marketing Strategies (I) Situational Analysis The Coca-Cola Company has been operating for over a century and is highly successful. It is currently in the renewal level of the post-maturity stage in the business life cycle. Is known worldwide and operates in more than 200 countries. price. SWOT Analysis: Strengths (S) Weaknesses (W) Coca-cola has been operating successfully for over a century.

Has sufficient capital to expand. (IV) Marketing Strategies Product 46 . and a secondary market of 10-39. there are some brands. May merge with other global businesses to eliminate competitors. However. PowerAde sports water target those who are fit. Capable of expanding into other markets other than the soft drink market. These competitors may develop marketing strategies to eliminate the Coca-Cola Company. Opportunities (O) Threats (T) Have significant growth opportunities. Has the potential to innovate and differentiate the company's products to sustain a competitive advantage. (ii) Target Market The company's beverages are generally for all consumers. which target specific consumers. There may be an economic downturn in the business cycle. The contract the Coca-Cola Company has with its bottlers is under constant negotiations. between the years of 25 and 39. The Coca-Cola Company when advertising has a primary target market of those who are 13-24. Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12. This type of market approach refers to market segmentation. Coca-Cola's diet soft drinks are targeted at consumers who are older in age. healthy and do sport. Has many major global competitors with its main one being Pepsi. (iii) Objectives/Goals Coca-Cola main objectives are to supply everyone their favorites drink and to satisfy the consumer needs and wants.Company is the most recognized trademark in the world. For example. Coca-Cola can be substituted by other soft drink products made by its competitors.

This extension is Responded to consumer demands as well as Generated sales and profit. The pricing methods/strategies are set by those the company sells to. Marketing strategies for product The Coca-Cola Company uses marketing strategies to differentiate its product from its competitors to gain a competitive advantage. The business has over 300 brands of beverages around the world with the main ones being Coke. above or equal to its competitors' prices. This innovation has: Increased consumer awareness and preference. Extension/product differentiation In 2002. Competition-based pricing Coca-Cola products are usually priced below. The Fridge Pack consists of cans packed 2-by-6. and PowerAde. petrol stations etc.25 liters. Sprite. Petrol stations and convenient stores usually sell Coca-Cola products at a fixed price. the Fridge Pack. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 liters. 600mL and 300mL. Lift. Discount price Coca47 . Fanta. the company innovated and came up with a new packaging idea. Fruitopia 100% Fruit Juice. 1. Increased rate of consumption and profitability. However. with the main product being finished beverages. convenient stores.The Coca-Cola Company's products include beverage concentrates and syrups. Price The prices of Coca-Cola's products vary according to the brand and the size. In 2002. The Coca-Cola Company's products are sold in retail stores. These are also available in aluminum cans of 375mL. the Coca-Cola Company extended the products of Coke and developed the new products Coke with lemon and Vanilla Coke. retail outlet uses pricing methods and pricing strategies when selling Coca-Cola products.

Psychological pricing Most of the Coca-Cola products use this method of pricing.Cola products are often marked down during sale periods and special occasions. This will Generate sales as well as Increase profits.00. Where millions were watching these games. It mainly uses the television.98 instead of $10. distributors. There are many television advertisements on Coca-Cola products. This strategy helps to maintain service and product loyalty. This source allows the company's products to reach a large audience. Recently. the business had substantial advertising and promotions of the company's brands. Advertising the Coca-Cola Company uses advertising as its main source of increasing consumer awareness. This is a cheaper source of approach compared to the television. Place The Coca-Cola Company sells its products to bottling and canning operations. Personal selling Every year. The Coca-Cola Company has a highly trained sales team. One of the older one is ` If you drink it. you get better of life' The company also uses the radio as another source of advertisement. fountain wholesalers and some fountain retailers. Promotional strategies The business uses a range of promotional activities. These 48 . It has been demonstrated by the business to be highly effective.This pricing strategy makes consumers perceive the products to be cheaper. Pricing strategies Meet-the-competition pricing the Coca-Cola products pricing are set around the same level as its competitors. the company benefited from its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup. for a pack of 375mL x 18 cans of Coca-Cola soft drinks it is priced at $9. which acts as a representative of the company to the retailers. For example.

distributors them to retail outlets. Intensive distribution The Coca-Cola Company uses the intensive distribution strategy. the company does not sell its products directly to its consumers. petrol stations and newsagents. restaurants. That is. milk bar and corner stores. Place strategies Indirect distribution The Coca-Cola Company uses intermediaries in its distribution. The business's products are sold in almost every outlet including: • Retail outlets • Small shops • Restaurants • Petrol stations • Newsagents • Schools • Sports and entertainment venues 49 .

1. BBC News story. including cadmium and lead. “We have scientific evidence to prove it is absolutely safe and we have never had any complaints. and Coca-Cola bottling plants misuse or monopolize local water resources. Sludge Waste Product According to a July 25.The allegations regarding the operations of Coca-Cola bottlers in India are varied. They include the following claims:  Sludge generated from water treatment activities in some CocaCola bottling plants contains hazardous metals that damage the environment. The results revealed that the material contained a number of toxic metals.” 50 . The representative stated. In response to the BBC report.” The BBC Reporter sent sludge samples to the University of Exeter in the United Kingdom for investigation. “Dangerous levels of the known carcinogen cadmium have been found in the sludge produced from the [CocaCola] plant in the southern state of Kerala. a Coca-Cola representative denied that the waste created a health risk. 2003.   Coca-Cola bottling plants contain harmful levels of pesticides.

” Coke also stated that its products “are tested regularly to ensure they meet rigorous standards. therefore. and that the drinks were safe. responded that the CSE report was exaggerated. the Center for Science and Environment (CSE). On August 20. The order stated that the board detected cadmium in the sludge.” However. Also in August 2006. the Kerala State Pollution Control Board directed a CocaCola bottler to stop production at its plant in Plachimada.Cola products in the state. the Kerala state government banned the manufacture and sale of Coca. In response. Coca-Cola’s website cited an August 2003 study by India’s Ministry of Health and Family Welfare that “confirmed that our products in India are safe.” In July 2005. the High Court in Rajasthan. Pesticides in Coca-Cola Products In 2003. Coca-Cola and Pepsi have appealed the ruling to the Supreme Court of India. released the results of a study that found high levels of pesticides in both Pepsi and Coca-Cola products in India.According to Coca-Cola’s website. In August 2006. “the Kerala State Pollution Control Board. 2. on bottle labels. Coca-Cola announced the results of testing performed by Central Science Laboratories (CSL) in the 51 . are not considered hazardous. and that groundwater in the vicinity was contaminated. in a detailed study. concluded that the concentration of cadmium and other heavy metals in the bio-solids are below prescribed limits and. The ban was subsequently overturned by the High Court of Kerala. however. the BBC interviewed an “expert on food security” who stated that the CSE’s study was more credible than the government’s. The Indian government. These tests include testing for pesticides and insecticides. a group operating in India for more than twenty years. 2005. India. issued a ruling requiring Coca-Cola and Pepsi to disclose the contents of soft drinks. an article in the Wall Street Journal noted that two other government studies of the Kerala waste material found that the material contained high enough levels of cadmium to deem it hazardous. including the permissible levels of pesticides and chemicals.

The court held that the Perumatty Grama Panchayat (a local government body) was not justified in rejecting the company’s application to renew its license. Finally. The court noted that the company had notified the pollution control board that any possibility of water contamination had been stopped. India. 2005. Coca-Cola moved the court to direct the Panchayat to comply with the court’s order. the High Court in Kerala. It noted that an expert committee appointed by the court identified an ongoing drought as a contributing factor. could use 500. the court found no evidence to support the claim that the company’s products contained poisonous substances. 52 .United Kingdom. On June 1. and directed the Panchayat to consider the company’s application. ruled that Hindustan CocaCola Beverages Private Ltd.000 liters of groundwater per day at its plant in the town of Plachimada. The case is currently pending. The court observed that wells in the area often went dry. subject to the restrictions in its earlier order. 2005. the court directed the Panchayat to renew the company’s license. On May 16. Misusing Water Resources On April 7. 3. The state government and the local Panchayat have appealed the decision to the Supreme Court of India. The court noted that water levels in the area continued to fall even after the bottling plant stopped pumping water in March 2004. CSL found no safety problem with pesticide residue in products produced by Coca-Cola in India. The court also directed the Panchayat to grant the license if certain other conditions were satisfied.

and behavior and response to word specific product. demographic profile. physiology or personal factor Types of Segmentation Geographic Segmentation can be defined as classification of the Consumer according to the country. state. attitude. Coca-Cola opponents have questioned the impartiality of TERI. and sustainable development. income.In April 2006. occupation. the environment. religion. generations. pointing out that Coca-Cola India provides sponsorship for various TERI projects. gender. Demographic Segmentation Demographic Segmentation can be defined as classification of the consumer in to the different group such as age & life cycle life stages. 53 . Coca-Cola announced that it was in active dialogue with The Energy Resource Institute (TERI) to develop a transparent and impartial thirdparty assessment of water resource management practices at Coca-Cola facilities in India. Behavioral Segmentation It can be define as classification of consumer on the basis of their knowledge. and city like geographic Units. TERI is a non-governmental organization based in India that focuses on the development of solutions to global problems in the field of energy. etc. Segmentation Targeting Positioning Segmentation Segmentation can be define as dividing or classify the consumer according to their need It can be according to the geographic reason.

The brands that fall in this category are Pepsi. The segmentation on the basis of place of consumption divides the market into two points: On premix 80% of the consumption of soft drink is on premise i. Restaurant. The segment is largely dominated by national brands like Fanta of coca-cola and mirinda 54 .Cola Coca Cola company have all the three type of segmentation Geographic. A marketer has to try for diff segmentation variables and to decide or to find the best way for viewing the market structure. demographic & Behavioral Segmentation. Diet Pepsi etc. Cola products account for nearly 61-62% of the total soft drink market. Clear Lime.Segmentation strategy of Coca. coca-cola. Non cola segment which 36% can be divided into 4 categories based on the types of flavors available Orange.e. Railways stations in cinema etc. Thumps up. Mango. Cloudy Lime. Orange Its flavors based soft drink made up of 17% of the market.  20% of the consumption is made of house hold purposes. Diet coke. SOFT DRINK SEGMENTATION There can not be one way to segment a market. The soft drink can be segmented on the basis of place of consumption or the basis of type of product. The market can also be segmented on the basis of type of product into cola products and non cola products.

& by giving qualitative product & also by doing social welfare activity live as 24 hours ambulance facility to the public. produces Slice. Mango This segment constitutes of 2% of total soft drink market and it competes with other brands such Mango Frooti. 55 . which collectively from 15% of the market rest of the market is under smaller brands like crush(earlier of Cadbury chippers and now of coca-cola) Gold spot etc.1 soft drink because It has a good brand image in the mind of customer by doing advertisement. Etc. But now the growth in the segment has slowed down. Coca-cola competitor Pepsi of Pepsi Co. Positioning “Positioning is the act of designing companies offering & image to occupier the distinctive place in the mind of target segment. By giving water facility to it’s nearest villages. Clear Lime These segment of the market witnessed good growth initially with all the players launching their brands in the segment. Coca-cola’s Positioning Strategy Coca cola’s is world’s No.

Targeting Types of Targeting Single Segment Concentration:Single segment concentration means company is targeting only one segment. Product Specialization:Product specialization means company is targeting only one mallet & producing all the product for that market. middle & lower & producing all the product accordingly market wise. Market Specialization:Market specialization means company is targeting one market and producing all the product for that market Full Market Segment:Full Market Segment means company is targeting all three market Upper. 56 . Selective Specialization:Selective specialization means company is targeting all three market and each market they have targeted one segment.

Maaza is naturally flavored product who is very conscious about the original fruit drink. Sprite:. Coca-cola is having about 55 plants in India and 37 plants of coke. Orange base product is basically for children & female. Since beginning of the coca-cola plant it has related a friendly relationship with its employees and customers.Targeting Strategy of Coca-cola Thums Up & Coke:. Plant of coca-cola is with zero discharge. It has provided different kinds of facilities for its employees. Diet coke for health Conscious people & for diabetic &heart problem people. which prevents from polluting the environment. Limca:.It is the lemon base beverages targeted as a refreshing product.I3ut coca. Pulpy orange:. And remaining water recycled and used for watering the plants.cola is ahead of Pepsi working of coca-cola is good and it career for its employees. which is gathered after trading the water. And so it is operation in were than 200 countries with 300 brands of soft drinks.This product for those people who want strong flavored product. Goblej plant of coca. 57 . Since beginning of coca-cola it is a leading beverage company in the world.It is a fruit concentrate It is a product for household purpose From this marketing Report of coca-cola I have concluded that coca-cola is perfect in its beverages and other works. but coca-cola is well spread in this countries.cola is having three ponds for breeding fish from the waste water. Maaza: . Coca-cola’s efficiency we can see from its operating in the communist countries like Russia and china where most of its competitors have difficulty in finding market slier. Coca-cola company’s beverages has captured almost 900/0 of the :market it is having Pepsi as its strong competitor in the beverage market.Sprite is targeted for young class people. I have tried my best to prepare marketing report on coca-cola and hope I have fulfilled my duty on the care.

coca-colaindia.BIBLIOGRAPHY [1] Through Industrial Visit [2] Website: [3] Website: [4] Website: www. [7] Marketing report of Senior [5] Principal of marketing . 58 . [8] The information given by the Professors.Kotler & Armstrong [6] The information given by Coca-Cola Company.

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