Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world¶s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company¶s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-todrink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: ³Provide a moment of refreshment for a small amount of money- a billion times a day.´

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world¶s premier softdrink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.

The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company¶s assets and resources whilst limiting business risks.

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass

layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. The FMCG sector consists of the following categories:


Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble.


Household Care- Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.


Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur


Spirits and Tobacco; the major players being; ITC, Godfrey, Philips and UB

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










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


Alcoholic, non-alcoholic and sports beverages


Natural and Synthetic beverages


In-home consumption and out of home on premises consumption.


Age wise segmentation i.e. beverages for kids, for adults and for senior citizens


Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry in India are:


The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.


The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.


Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.


Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

THE COCA-COLA COMPANY _______________________________________________

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his backyard. He first ³distributed´ the product by carrying it in a jug down the street to Jacob¶s Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by accident or otherwise, producing a drink that was proclaimed ³delicious and refreshing´, a theme that continues to echo today wherever CocaCola is enjoyed.

Dr. Pemberton¶s partner and book-keeper, Frank M. Robinson, suggested the name and penned ³Coca-Cola´ in the unique flowing script that is famous worldwide even today. He suggested that ³the two Cs would look well in advertising.´ The first newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty citizens to try ³the new and popular soda fountain drink.´ Hand-painted oil cloth signs reading ³Coca-Cola´ appeared on store awnings, with the suggestions ³Drink´ added to inform passersby that the new beverage was for soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year, Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has been a distinctive color associated with the soft drink ever since. For his efforts, Dr. Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never realized the potential of the beverage he created. He gradually sold portions of his business to various partners and, just prior to his death in 1888, sold his remaining interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year 1891, Mr. Candler proceeded to buy additional rights and acquire complete ownership and control of the Coca-Cola business. Within four years, his merchandising flair had helped expand consumption of Coca-Cola to every state and territory after which he liquidated his pharmaceutical business and focused his full attention on the soft drink. With his brother, John S. Candler, John Pemberton¶s former partner Frank Robinson and two other associates, Mr. Candler formed a Georgia corporation named the Coca-Cola Company. The

trademark ³Coca-Cola,´ used in the marketplace since 1886, was registered in the United States Patent Office on January 31, 1893.

The business continued to grow, and in 1894, the first syrup manufacturing plant outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago, Illinois, and Los Angeles, California, the following year. In 1895, three years after The Coca-Cola Company¶s incorporation, Mr. Candler announced in his annual report to share owners that ³Coca-Cola is now drunk in every state and territory in the United States.´

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A new building erected in 1898 was the first headquarters building devoted exclusively to the production of syrup and the management of the business. In the year 1919, the Coca-Cola Company was sold to a group of investors for $25 million. Robert W. Woodruff became the President of the Company in the year 1923 and his more than sixty years of leadership took the business to unsurpassed heights of commercial success, making Coca-Cola one of the most recognized and valued brands around the world.

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was only when a strong bottling system developed that Coca-Cola became the world-famous brand it is today.

Year 1894: A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales.

Year 1899: The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States for a sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

Years 1900-1909: Rapid growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were open only during hot-weather months when demand was high. Year 1916: Birth of the Contour Bottle Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A

group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it is one of the most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

In the 1920s and 1930s: International expansion Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in France, Guatemala, Honduras, Mexico, Belgium, Italy and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries. In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

In the 1950s: Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type-the traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26 ounce versions. Cans were also introduced, becoming generally available in 1960.

In the 1960s: Introduction of new brands Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other brands are offered to meet consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-Cola Company merged and evolved into international mega chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.

In the 1990s: New and growing markets Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.


Coca-Cola is guided by shared values that both the employees as individuals and the Company will live by; the values being:

y y y y y y y

LEADERSHIP: The courage to shape a better future PASSION: Committed in heart and mind INTEGRITY: Be real ACCOUNTABILITY: If it is to be, it¶s up to me COLLABORATION: Leverage collective genius INNOVATION: Seek, imagine, create, delight QUALITY: What we do, we do well


y y y

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.



PROFIT: Maximizing return to shareowners while being mindful of our overall responsibilities.


PEOPLE: Being a great place to work where people are inspired to be the best they can be.


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.


HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL) _______________________________________________


Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal its formula to the Government and reduce its equity stake as required under the Foreign Regulation Act (FERA) which governed the operations of foreign companies in India. Coca-Cola reentered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle Group gave the Company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle¶s plants and a well set bottling network, an excellent base for rapid introduction of the Company¶s International brands was formed. The Coca-Cola Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of Coca-Cola in 1993.Thus these products became a part of range of products of the Coca-Cola Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. However, this was based on numerous commitments and stipulations which the Company agreed to implement in due course. One such major commitment was that, the Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favor of resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60 manufacturing locations, 27 Company Owned Bottling Operations (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract Packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the Company. The complexity of the Indian market is reflected in the distribution fleet which includes different modes of distribution, from 10-tonne trucks to open-bay three wheelers

that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.

³Think local, act local´, is the mantra that Coca-Cola follows, with punch lines like ³Life ho to aisi´ for Urban India and ³Thanda Matlab Coca-Cola´ for Rural India. This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India. Between 2001 and 2003, the per capita consumption of cold drinks doubled due to the launch of the new packaging of 200 ml returnable glass bottles which were made available at a price of Rs.5 per bottle. This new market accounted for over 80% of India¶s new Coca-Cola drinkers. At Coca-Cola, they have a long standing belief that everyone who touches their business should benefit, thereby inducing them to uphold these values, enabling the Company to achieve success, recognition and loyalty worldwide.




The values that the employees in the Company are expected to keep up to and work by regularly are as follows: y LEADERSHIP: To take an initiative and lead, motivate and drive the team with energy and zeal, to deliver outstanding results. y INNOVATION: To continuously strive for progress and reach the next level of excellence in everything we do. y PASSION: To be deeply committed and display drive and energy in the quest to deliver outstanding performance. y TEAMWORK: To unite for greater strength and work collectively as a group towards the achievement of common goals. y OWNERSHIP: To think and act like owners at all levels; to have decisions taken at the lowest appropriate level. y ACCOUNTABILITY: To be individually and transparently accountable to our colleagues for delivering agreed targets and goals.

To provide exceptional strategic leadership in the Coca-Cola India System-resulting in consumer and customer preference and loyalty, through Coca-Cola¶s commitment to them, and in a highly profitable Coca-Cola Corporate branded beverages system.

To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to; y y y y Consumers as a superior beverage experience Consumers as an opportunity to grow profits through the use of finished drinks Bottlers as an opportunity to grow profits in volumes Bottlers as a trademark enhancement and positive economic value added


Suppliers as an opportunity to make reasonable profits when creating real value-added in an environment of system-wide team work, flexible business system and continuous improvement


Indian society in the form of a contribution to economic and social development.

³To ensure customer delight, we commit to quality in our thoughts, deeds and actions by continually improving our processes«Every time.´


Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)


Region Vice President

AGM/AOD Unit 1

AGM/AOD Unit 2

AGM/AOD Unit 3


Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal

Region BSG

Region Director/Manager Market Execution

Region Capability Management

Region Channel




Plant Manager

Route to Market

Human Resource Manager

Finance Manager

General Sales Manager

Area Sales Manager

Channel Manager

Area Capability Manager

Sales Executive


Sales Trainers

Market Developer

Key Accounts

Distributors And Salesmen


The manufacturing unit of HCCBPL, situated at Bidadi, is the third largest plant and one of the bottling operations owned by the company. The Plant has one PET line which has the capacity of yielding 209 bottles, per minute, two RGB (Returnable glass bottles) lines which yields 600 bottles per minute each and one Juice line which yield 155 bottles per minute. It caters to the

whole of South Karnataka through a network of more than 80 distributors. There are three depots in Bangalore; North Depot, East Depot and Mega Depot.

Manufacturing Plant, Bidadi

Sales and Distribution Operations







The manufacturing of the products of Coca-Cola involves the following steps:


Water is received from the River Cauvery and it passes through the water treatment plant, further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.


In the syrup room, the concentrate received from another bottling plant situated at Pune, is blended with the sugar syrup


Once both the water and the final syrup are ready, they are both mixed together and sent to the carbonator section where Carbon Dioxide is added to the mixture to form the final product.


On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed.


The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse for distribution.

BUSINESS PLAN MODEL AT HCCBPL Coca-Cola India division, Gurgaon Manufactures Concentrate, Beverage base and Syrup

Regional Bottlers COBO/FOBO

Manufactures finished Bottles/Cans/Fountain Syrup




HCCBPL has a wide and well managed network of salesmen appointed for taking up the responsibility of distribution of products to diverse parts of the cities. The distribution channels are constructed in such a way that the demand of customers is fulfilled at the right place and the right time when it is needed by them.

A typical distribution chain at HCCBPL would be: Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --Retail Stock --- Retail Shelf --- Consumer The customers of the Company are divided into different categories and different routes, and every salesman is assigned to one particular route, which is to be followed by him on a daily basis. A detailed and well organized distribution system contributes to the efficiency of the salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher profits to the firm.


The various routes formulated by HCCBPL for distribution of products are as follows:


Key Accounts: The customers in this category collectively contribute a large chunk of the total sales of the Company. It basically consists of organizations that buy large quantities of a product in one single transaction. The Company provides goods to these customers on credit, payments being made by them after a certain period of time i.e. either a month of half a month. Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.


Future Consumption: This route consists of outlets of Coca-Cola products, wherein a considerable amount of stock is kept in order to use for future consumption. The stock does not exhaust within a day or two, instead as and when required stocks are stacked up by them so as to avoid shortage or non-availability of the product. Examples: Departmental stores, Super markets etc.


Immediate Consumption: The outlets in this route are those which require stocks on a daily basis. The stocks of products in these outlets are not stored for future use instead, are exhausted on the same day and might run a little into the next day i.e. the products are consumed at a fast pace. Examples: Small sized bars and restaurants, educational institutions etc.


General: Under this route, all the outlets that come in a particular area or an area along with its neighboring areas are catered to. The consumption period is not taken into consideration in this particular route.



Direct distribution: In direct distribution, the bottling unit or the bottler partner has direct control over the activities of sales, delivery, and merchandising and local account management at the store level.


Indirect distribution: In indirect distribution, an organization which is not part of the Coca-Cola system has control on one or more of the distribution elements (Sales, delivery, merchandising and local account management)


Merchandising: Merchandising means communication with the consumer at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility. In certain locations special teams who go into business locations to specifically merchandise our products.

The Distribution process mainly consists of three departments: y Distribution Department: It appoints distributors and establishes a distribution network, processes approved sale orders and prepares invoices, arranges logistics and ship products, co-ordinates with distributors for collections and monitors distribution stocks and their set-up. y Finance Department: It checks credit limits and approves sales orders in compliance with the credit policy followed by the firm, records collections from distributors, periodically reconciles outstanding balances from distributors, obtains balance confirmation from distributors and follows up outstanding balances.


Shipping or Warehousing Department: It dispatches goods as per approved by order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load out area and updates warehouse stock records in a timely manner.



DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.


STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. CocaCola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45billion.


LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.

y LOW EXPORT LEVELS: The brands produced by the company are brands produced world wide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-

governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including lindane, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.


SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company¶s operations are carried out on a small scale and due to Government restrictions and µred-tapism¶, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

y LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.


EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.


HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.



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


TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.


SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company¶s products.

y There is much in our world to celebrate, refresh, strengthen and

protect. The Coca-Cola Company is a vibrant network of people, in over 200 countries, putting citizenship into action. Through our actions as local citizens, we strive every day to refresh the marketplace, enrich the workplace, protect the environment and strengthen our communities. y We are a local employer, with responsibility to enable our people to tap

into their full potential; working at their innovative best and representing the diversity of the world we serve. y We are an investor in local economies and a driver of marketplace

innovation, with a responsibility to act as a good steward of our natural environment. y And we are a local citizen, understanding our responsibility to

contribute to an improved quality of life in our communities. Commitment To Quality: The Coca-Cola Quality System is a worldwide initiative involving every aspect of their business. Everyone who works for or with Coca-Cola is empowered and expected to maintain the highest standards of quality in products, processes and relationships. They are never content to let our standards become static. The Coca-Cola Quality System mandates indepth self-assessment throughout their operations, by all their business units. This enables them to raise their standards even higher.

In their ingredient evaluation laboratories, for example, they perform precise analysis of fruit juices and other ingredients sent to them by their suppliers, to ensure and to improve product quality. Their processes, too, undergo constant

scrutiny, to safe-guard the water they use in their products and the packaging that carries them to their consumers. They inform and educate their business partners about their standards, so that they meet the highest quality requirements. Under the Coca-Cola Quality System, quality is their highest business objective and their enduring obligation. Code Of Business Conduct: To reaffirm their commitment to ethical behaviour as an organization and as individuals, they issued a revised code of business conduct in 2002 to every employee worldwide. This code continues to serve as a guide to their actions, advancing and protecting their core values of Honesty, Integrity, Diversity, Quality, Respect, Responsibility and Accountability

It presents the information in clear, easy-to understand terms, adding procedural guidelines that establish steps for investigating and addressing possible violations of the code. It also extend its scope to the conduct of company directors, as well as employees and officers. These changes and additions make The Coca-Cola Company Code of business conduct a powerful resource for protecting their Company¶s reputation for integrity.


The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks.

The key competitors in the industry are as follows:


PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's # 2, carbonated soft-drink maker. The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage; PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and CocaCola hold together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest belongs to Pepsi.


Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals
with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.


Dabur: Dabur in India, is one of the most trusted brands as it has been operating ever
since times and people have laid all their trust in the Company and the products of the Company. Apart from food products, Dabur has introduced into the market Real Juice which is packaged fresh fruit juice. These products give a strong competition to Maaza and the latest product Minute Maid Pulpy Orange.

PRODUCTS _______________________________________________
The Coca-Cola Company offers a wide range of products to the customers including beverages, fruit juices and bottled mineral water. The Company is always looking to innovate and come up with, either complete new products or new ways to bottle or pack the existing drinks. The CocaCola Company has a wide range of products out of which the following products are marketed by HCCBPL:


In the Cola Section:


In the Lemon section:


In the Orange section:


In the Juice section:


In the Soda Water and Bottled Mineral Water section:


In the Tonic Water section:



Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300 ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles


Diet Coke: 330 ml can and 500 ml PET bottle


Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and 1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack


Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles


Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET bottles


Schweppes Mineral Water: 750 ml PET bottles


Schweppes Tonic Water: 330 ml can


Kinley Soda Water: 300 ml returnable glass bottles, 500+100 ml free and 1.5 litre PET bottles.

Market research is often needed to ensure that we produce what customers really want and not what we think they want. Primary vs. secondary research methods. There are two main approaches to marketing. Secondary research involves using information that others have already put together. For example, if you are thinking about starting a business making clothes for tall people, you don¶t need to question people about how tall they are to find out how many tall people exist²that information has already been published by the U.S. Government. Primary research, in contrast, is research that you design and conduct yourself. For example, you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete. For example, Coca Cola did a great deal of research prior to releasing the New Coke, and consumers seemed to prefer the taste. However, consumers were not prepared to have this drink replace traditional Coke. Secondary Methods. For more information about secondary market research tools and issues. Primary Methods. Several tools are available to the market researcher²e.g., mail questionnaires, phone surveys, observation, and focus groups. Surveys are useful for getting a great deal of specific information. Surveys can contain open-ended questions (e.g., ³In which city and state were you born? or closed-ended, where the respondent is asked to select answers from a brief list Female.´ Open ended questions have the advantage that the respondent is not limited to the options listed, and that the respondent is not being influenced by seeing a list of responses. However, open-ended questions are often skipped by respondents, and coding them can be quite a

challenge. In general, for surveys to yield meaningful responses, sample sizes of over 100 are usually required because precision is essential. For example, if a market share of twenty percent would result in a loss while thirty percent would be profitable, a confidence interval of 20-35% is too wide to be useful. Surveys come in several different forms. Mail surveys are relatively inexpensive, but response rates are typically quite low²typically from 5-20%. Phone-surveys get somewhat higher response rates, but not many questions can be asked because many answer options have to be repeated and few people are willing to stay on the phone for more than five minutes. Mall intercepts are a convenient way to reach consumers, but respondents may be reluctant to discuss anything sensitive face-to-face with an interviewer. Surveys, as any kind of research, are vulnerable to bias. The wording of a question can influence the outcome a great deal. For example, more people answered no to the question ³Should speeches against democracy be allowed? than answered yes to ³Should speeches against democracy be forbidden?´ For face-to-face interviews, interviewer bias is a danger, too. Interviewer bias occurs when the interviewer influences the way the respondent answers. For example, unconsciously an interviewer that works for the firm manufacturing the product in question may smile a little when something good is being said about the product and frown a little when something negative is being said. The respondent may catch on and say something more positive than his or her real opinion. Finally, a response bias may occur²if only part of the sample responds to a survey, the respondents answers may not be representative of the population. Focus groups are useful when the marketer wants to launch a new product or modify an existing one. A focus group usually involves having some 8-12 people come together in a room to discuss their consumption preferences and experiences. The group is usually led by a moderator, who will start out talking broadly about topics related broadly to the product without mentioning the product itself. For example, a focus group aimed at sugar-free cookies might first address consumers snacking preferences,

only gradually moving toward the specific product of sugar-free cookies. By not mentioning the product up front, we avoid biasing the participants into thinking only in terms of the specific product brought out. Thus, instead of having consumers think primarily in terms of what might be good or bad about the product, we can ask them to discuss more broadly the ultimate benefits they really seek. For example, instead of having consumers merely discuss what they think about some sugar-free cookies that we are considering releasing to the market, we can have consumers speak about their motivations for using snacks and what general kinds of benefits they seek. Such a discussion might reveal a concern about healthfulness and a desire for wholesome foods. Probing on the meaning of wholesomeness, consumers might indicate a desire to avoid artificial ingredients. This would be an important concern in the marketing of sugar-free cookies, but might not have come up if consumers were asked to comment directly on the product where the use of artificial ingredients is, by virtue of the nature of the product, necessary. Focus groups are well suited for some purposes, but poorly suited for others. In general, focus groups are very good for getting breadth²i.e., finding out what kinds of issues are important for consumers in a given product category. Here, it is helpful that focus groups are completely ³open-ended: The consumer mentions his or her preferences and opinions, and the focus group moderator can ask the consumer to elaborate. In a questionnaire, if one did not think to ask about something, chances are that few consumers would take the time to write out an elaborate answer. Focus groups also have some drawbacks, for example:

They represent small sample sizes. Because of the cost of running focus groups, only a few groups can be run. Suppose you run four focus groups with ten members each. This will result in an n of 4(10)=40, which is too small to generalize from. Therefore, focus groups cannot give us a good idea of:

y y y

What proportion of the population is likely to buy the product. What price consumers are willing to pay. The groups are inherently social. This means that:


Consumers will often say things that may make them look good (i.e., they watch public television rather than soap operas or cook fresh meals for their families daily) even if that is not true.


Consumers may be reluctant to speak about embarrassing issues (e.g., weight control, birth control).

Personal interviews involve in-depth questioning of an individual about his or her interest in or experiences with a product. The benefit here is that we can get really into depth (when the respondent says something interesting, we can ask him or her to elaborate), but this method of research is costly and can be extremely vulnerable to interviewer bias. To get a person to elaborate, it may help to try a common tool of psychologists and psychiatrists²simply repeating what the person said. He or she will often become uncomfortable with the silence that follows and will then tend to elaborate. This approach has the benefit that it minimizes the interference with the respondent¶s own ideas and thoughts. He or she is not influenced by a new question but will, instead, go more in depth on what he or she was saying. Personal interviews are highly susceptible to inadvertent ³signaling to the respondent. Although an interviewer is looking to get at the truth, he or she may have a significant interest in a positive consumer response. Unconsciously, then, he or she may inadvertently smile a little when something positive is said and frown a little when something negative is said. Consciously, this will often not be noticeable, and the respondent often will not consciously be aware that he or she is being ³reinforced and ³punished for saying positive or negative things, but at an unconscious level, the cumulative effect of several facial expressions are likely to be felt. Although this type of conditioning will not get a completely negative respondent to say all positive things, it may ³swing the balance a bit so that respondents are more likely to say positive thoughts and withhold, or limit the duration of, negative thoughts.

Projective techniques are used when a consumer may feel embarrassed to admit to certain opinions, feelings, or preferences. For example, many older executives may not be comfortable admitting to being intimidated by computers. It has been found that in such cases, people will tend to respond more openly about ³someone else.´ Thus, we may ask them to explain reasons why a friend has not yet bought a computer, or to tell a story about a person in a picture who is or is not using a product. The main problem with this method is that it is difficult to analyze responses. Projective techniques are inherently inefficient to use. The elaborate context that has to be put into place takes time and energy away from the main question. There may also be real differences between the respondent and the third party. Saying or thinking about something that ³hits too close to home may also influence the respondent, who may or may not be able to see through the ruse. Observation of consumers is often a powerful tool. Looking at how consumers select products may yield insights into how they make decisions and what they look for. For example, some American manufacturers were concerned about low sales of their products in Japan. Observing Japanese consumers, it was found that many of these Japanese consumers scrutinized packages looking for a name of a major manufacturer²the product specific-brands that are common in the U.S. (e.g., Tide) were not impressive to the Japanese, who wanted a name of a major firm like Mitsubishi or Proctor & Gamble. Observation may help us determine how much time consumers spend comparing prices, or whether nutritional labels are being consulted. A question arises as to whether this type of ³spying inappropriately invades the privacy of consumers. Although there may be cause for some concern in that the particular individuals have not consented to be part of this research, it should be noted that there is no particular interest in what the individual customer being watched does. The question is what consumers²either as an entire group or as segments²do. Consumers benefit, for example, from stores that are designed effectively to promote efficient shopping. If it is found that women are more uncomfortable than men about others standing too close, the areas of the store heavily trafficked by women can be designed accordingly.

What is being reported here, then, are averages and tendencies in response. The intent is not to find ³juicy observations specific to one customer. The video clip with Paco Underhill that we saw in class demonstrated the application of observation research to the retail setting. By understanding the phenomena such as the tendency toward a right turn, the location of merchandise can be observed. It is also possible to identify problem areas where customers may be overly vulnerable to the ³but brush, or overly close encounter with others. This method can be used to identify problems that the customer experiences, such as difficulty finding a product, a mirror, a changing room, or a store employee for help. Online research methods. The Internet now reaches the great majority of households in the U.S., and thus, online research provides new opportunity and has increased in use. One potential benefit of online surveys is the use of ³conditional branching.´ In conventional paper and pencil surveys, one question might ask if the respondent has shopped for a new car during the last eight months. If the respondent answers ³no, he or she will be asked to skip ahead several questions²e.g., going straight to question 17 instead of proceeding to number 9. If the respondent answered ³yes, he or she would be instructed to go to the next question which, along with the next several ones, would address issues related to this shopping experience. Conditional branching allows the computer to skip directly to the appropriate question. If a respondent is asked which brands he or she considered, it is also possible to customize brand comparison questions to those listed. Suppose, for example, that the respondent considered Ford, Toyota, and Hyundai, it would be possible to ask the subject questions about his or her view of the relative quality of each respective pair²in this case, Ford vs. Toyota, Ford vs. Hyundai, and Toyota vs. Hyundai. There are certain drawbacks to online surveys. Some consumers may be more comfortable with online activities than others²and not all households will have access. Today, however, this type of response bias is probably not significantly greater than that associated with other types of research methods. A more serious problem is that it has

consistently been found in online research that it is very difficult²if not impossible²to get respondents to carefully read instructions and other information online²there is a tendency to move quickly. This makes it difficult to perform research that depends on the respondent¶s reading of a situation or product description. Online search data and page visit logs provides valuable ground for analysis. It is possible to see how frequently various terms are used by those who use a firm¶s web site search feature or to see the route taken by most consumers to get to the page with the information they ultimately want. If consumers use a certain term frequently that is not used by the firm in its product descriptions, the need to include this term in online content can be seen in search logs. If consumers take a long, ³torturous route to information frequently accessed, it may be appropriate to redesign the menu structure and/or insert hyperlinks in ³intermediate pages that are found in many users routes. Scanner data. Many consumers are members of supermarket ³clubs.´ In return for signing p for a card and presenting this when making purchases, consumers are often eligible for considerable discounts on selected products. Researchers use a more elaborate version of this type of program in some communities. Here, a number of consumers receive small payments and/or other incentives to sign up to be part of a research panel. They then receive a card that they are asked to present any time they go shopping. Nearly all retailers in the area usually cooperate. It is now possible to track what the consumer bought in all stores and to have a historical record. The consumer¶s shopping record is usually combined with demographic information (e.g., income, educational level of adults in the household, occupations of adults, ages of children, and whether the family owns and rents) and the family¶s television watching habits. (Electronic equipment run by firms such as A. C. Nielsen will actually recognize the face of each family member when he or she sits down to watch).

It is now possible to assess the relative impact of a number of factors on the consumer¶s choice²e.g.,

What brand in a given product category was bought during the last, or a series of past, purchase occasions;


Whether, and if so, how many times a consumer has seen an ad for the brand in question or a competing one;


Whether the target brand (and/or a competing one) is on sale during the store visit;

y y y

Whether any brand had preferential display space; The impact of income and/or family size on purchase patterns; and Whether a coupon was used for the purchase and, if so, its value.

A ³split cable technology allows the researchers to randomly select half the panel members in a given community to receive one advertising treatment and the other half another. The selection is truly random since each household, as opposed to neighborhood, is selected to get one treatment or the other. Thus, observed differences should, allowing for sampling error, the be result of advertising exposure since there are no other systematic differences between groups.

Interestingly, it has been found that consumers tend to be more influenced by commercials that they ³zap through while channel surfing even if they only see part of the commercial. This most likely results from the reality that one must pay greater attention while channel surfing than when watching a commercial in order to determine which program is worth watching. Scanner data is, at the present time, only available for certain grocery item product categories²e.g., food items, beverages, cleaning items, laundry detergent, paper towels, and toilet paper. It is not available for most non-grocery product items. Scanner data analysis is most useful for frequently purchased items (e.g., drinks, food items, snacks, and toilet paper) since a series of purchases in the same product category yield more information with greater precision than would a record of one purchase at one point in time. Even if scanner data were available for electronic products such as printers, computers, and MP3 players, for example, these products would be purchased quite infrequently. A single purchase, then, would not be as effective in effectively distinguishing the effects of different factors²e.g., advertising, shelf space, pricing of the product and competitors, and availability of a coupon²since we have at most one purchase instance during a long period of time during which several of these factors would apply at the same time. In the case of items that are purchased frequently, the consumer has the opportunity to buy a product, buy a competing product, or buy nothing at all depending on the status of the brand of interest and competing brands. In the case of the purchase of an MP3 player, in contrast, there may be promotions associated with several brands going on at the same time, and each may advertise. It may also be that the purchase was motivated by the breakdown of an existing product or dissatisfaction or a desire to add more capabilities. Physiological measures are occasionally used to examine consumer response. For example, advertisers may want to measure a consumer¶s level of arousal during various parts of an advertisement. This can be used to assess possible discomfort on the negative side and level of attention on the positive side.

By attaching a tiny camera to plain eye glasses worn by the subject while watching an advertisement, it is possible to determine where on screen or other ad display the subject focuses at any one time. If the focus remains fixed throughout an ad sequence where the interesting and active part area changes, we can track whether the respondent is following the sequence intended. If he or she is not, he or she is likely either not to be paying as much attention as desired or to be confused by an overly complex sequence. In situations where the subject¶s eyes do move, we can assess whether this movement is going in the intended direction. Mind-reading would clearly not be ethical and is, at the present time, not possible in any event. However, it is possible to measure brain waves by attaching electrodes. These readings will not reveal what the subject actually thinks, but it is possible to distinguish between beta waves²indicating active thought and analysis²and alpha waves, indicating lower levels of attention. An important feature of physiological measures is that we can often track performance over time. A subject may, for example, be demonstrating good characteristics²such as appropriate level of arousal and eye movement²during some of the ad sequence and not during other parts. This, then, gives some guidance as to which parts of the ad are effective and which ones need to be reworked. In a variation of direct physiological measures, a subject may be asked, at various points during an advertisement, to indicate his or her level of interest, liking, comfort, and approval by moving a lever or some instrument (much like one would adjust the volume on a radio or MP3 player). Republican strategist used this technique during the impeachment and trial of Bill Clinton in the late 1990s. By watching approval during various phases of a speech by the former President, it was found that viewers tended to respond negatively when he referred to ³speaking truthfully but favorably when the President referred to the issues in controversy as part of his ³private life.´ The Republican researchers were able to separate average results from Democrats, Independents, and Republicans, effectively looking at different segments to make sure that differences between each did not cancel out effects of the different segments. (For

example, if at one point Democrats reacted positively and Republicans responded negatively with the same intensity, the average result of apparent indifference would have been very misleading). Research sequence. In general, if more than one type of research is to be used, the more flexible and less precise method²such as focus groups and/or individual interviews²should generally be used before the less flexible but more precise methods (e.g., surveys and scanner data) are used. Focus groups and interviews are flexible and allow the researcher to follow up on interesting issues raised by participants who can be probed. However, because the sample sizes are small and because participants in a focus group are influenced by each other, few data points are collected. If we run five focus groups with eight people each, for example, we would have a total of forty responses. Even if we assume that these are independent, a sample size of forty would give very imprecise results. We might conclude, for example, that somewhere between 5% and 40% of the target market would be interested in the product we have to offer. This is usually no more precise than what we already reasonably new. Questionnaires, in contrast, are highly inflexible. It is not possible to ask follow-up questions. Therefore, we can use our insights from focus groups and interviews to develop questionnaires that contain specific questions that can be asked to a larger number of people. There will still be some sampling error, but with a sample size of 1,000+ responses, we may be able to narrow the 95% confidence interval for the percentage of the target market that is seriously interested in our product to, say, 17-21%, a range that is much more meaningful. Cautions. Some cautions should be heeded in marketing research. First, in general, research should only be commissioned when it is worth the cost. Thus, research should normally be useful in making specific decisions (what size should the product be? Should the product be launched? Should we charge $1.75 or $2.25?) Secondly, marketing research can be, and often is, abused. Managers frequently have their own ³agendas (e.g., they either would like a product to be launched or would prefer that it not be launched so that the firm will have more resources left over to

tackle their favorite products). Often, a way to get your way is to demonstrate through ³objective research that your opinions make economic sense. One example of misleading research, which was reported nationwide in the media, involved the case of ³The Pentagon Declares War on Rush Limbaugh.´ The Pentagon, within a year of the election of Democrat Bill Clinton, reported that only 4.2% of soldiers listening to the Armed Forces Network wanted to hear Rush Limbaugh. However, although this finding was reported without question in the media, it was later found that the conclusion was based on the question ³What single thing can we do to improve programming?´ If you did not write in something like ³Carry Rush Limbaugh, you were counted as not wanting to hear him. Culture is part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals. The definition of culture offered in one textbook is ³That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society.´ From this definition, we make the following observations:
y y

Culture, as a ³complex whole, is a system of interdependent components. Knowledge and beliefs are important parts. In the U.S., we know and believe that a person who is skilled and works hard will get ahead. In other countries, it may be believed that differences in outcome result more from luck. ³Chunking, the name for China in Chinese, literally means ³The Middle Kingdom.´ The belief among ancient Chinese that they were in the center of the universe greatly influenced their thinking.


Other issues are relevant. Art, for example, may be reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans in others. Morality may be exhibited in the view in the United States that one should not be naked in public. In Japan, on the other hand, groups of men and women may take steam baths together without perceived as improper. On the other extreme, women in some Arab countries are not even allowed to reveal

their faces. Notice, by the way, that what at least some countries view as moral may in fact be highly immoral by the standards of another country. For example, the law that once banned interracial marriages in South Africa was named the ³Immorality Act, even though in most civilized countries this law, and any degree of explicit racial prejudice, would itself be considered highly immoral. Culture has several important characteristics: (1) Culture is comprehensive. This means that all parts must fit together in some logical fashion. For example, bowing and a strong desire to avoid the loss of face are unified in their manifestation of the importance of respect. (2) Culture is learned rather than being something we are born with. We will consider the mechanics of learning later in the course. (3) Culture is manifested within boundaries of acceptable behavior. For example, in American society, one cannot show up to class naked, but wearing anything from a suit and tie to shorts and a T-shirt would usually be acceptable. Failure to behave within the prescribed norms may lead to sanctions, ranging from being hauled off by the police for indecent exposure to being laughed at by others for wearing a suit at the beach. (4) Conscious awareness of cultural standards is limited. One American spy was intercepted by the Germans during World War II simply because of the way he held his knife and fork while eating. (5) Cultures fall somewhere on a continuum between static and dynamic depending on how quickly they accept change. For example, American culture has changed a great deal since the 1950s, while the culture of Saudi Arabia has changed much less. Dealing with culture. Culture is a problematic issue for many marketers since it is inherently nebulous and often difficult to understand. One may violate the cultural norms of another country without being informed of this, and people from different cultures may feel uncomfortable in each other¶s presence without knowing exactly why (for example, two speakers may unconsciously continue to attempt to adjust to reach an incompatible preferred interpersonal distance).

Warning about stereotyping. When observing a culture, one must be careful not to over-generalize about traits that one sees. Research in social psychology has suggested a strong tendency for people to perceive an ³outgroup as more homogenous than an ³ingroup, even when they knew what members had been assigned to each group purely by chance. When there is often a ³grain of truth to some of the perceived differences, the temptation to over-generalize is often strong. Note that there are often significant individual differences within cultures. Cultural lessons. We considered several cultural lessons in class; the important thing here is the big picture. For example, within the Muslim tradition, the dog is considered a ³dirty animal, so portraying it as ³man¶s best friend in an advertisement is counterproductive. Packaging, seen as a reflection of the quality of the ³real product, is considerably more important in Asia than in the U.S., where there is a tendency to focus on the contents which ³really count.´ Many cultures observe significantly greater levels of formality than that typical in the U.S., and Japanese negotiator tend to observe long silent pauses as a speaker¶s point is considered. Cultural characteristics as a continuum. There is a tendency to stereotype cultures as being one way or another (e.g., individualistic rather than collectivistic). Note, however, countries fall on a continuum of cultural traits. Hofstede¶s research demonstrates a wide range between the most individualistic and collectivistic countries, for example²some fall in the middle. Hofstede¶s Dimensions. Gert Hofstede, a Dutch researcher, was able to interview a large number of IBM executives in various countries, and found that cultural differences tended to center around four key dimensions:

Individualism vs. collectivism: To what extent do people believe in individual responsibility and reward rather than having these measures aimed at the larger group? Contrary to the stereotype, Japan actually ranks in the middle of this dimension, while Indonesia and West Africa rank toward the collectivistic side. The U.S., Britain, and the Netherlands rate toward individualism.


Power distance: To what extent is there a strong separation of individuals based on rank? Power distance tends to be particularly high in Arab countries and some Latin American ones, while it is more modest in Northern Europe and the U.S.


Masculinity vs. femininity involves a somewhat more nebulous concept. ³Masculine´ values involve competition and ³conquering nature by means such as large construction projects, while ³feminine values involve harmony and environmental protection. Japan is one of the more masculine countries, while the Netherlands rank relatively low. The U.S. is close to the middle, slightly toward the masculine side. ( The fact that these values are thought of as ³masculine or ³feminine does not mean that they are consistently held by members of each respective gender²there are very large ³within-group differences. There is, however, often a large correlation of these cultural values with the status of women.)


Uncertainty avoidance involves the extent to which a ³structured situation with clear rules is preferred to a more ambiguous one; in general, countries with lower uncertainty avoidance tend to be more tolerant of risk. Japan ranks very high. Few countries are very low in any absolute sense, but relatively speaking, Britain and Hong Kong are lower, and the U.S. is in the lower range of the distribution.

Although Hofstede¶s original work did not address this, a fifth dimension of long term vs. short term orientation has been proposed. In the U.S., managers like to see quick results, while Japanese managers are known for take a long term view, often accepting long periods before profitability is obtained. To-day Companies are facing their toughest competition; companies can outdo their competition if they can move from a product and sales philosophy to a marketing philosophy. Only customer-centered companies are adept at building customers, not just building products. Too many companies think that it is the marketing/sales

department¶s job to procure customers. If that department cannot, the company draws the conclusion that its marketing people are not very good. But, in fact marketing is

only one factor in attracting and keeping customers. The best marketing department in the world cannot sell products that are poorly made or fail to meet anyone¶s need. The marketing department can be effective only in companies whose various departments and employees have designed and implemented a competitively superior value delivery system.

Buyers will buy from the firm when they perceive to offer the highest customer delivered value. Customer delivered value is the difference between total customer value and total customer cost. Total customer value is the bundle of benefits customers expect from a given product or service. Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining and using the product or service.

Customer Satisfaction ± Whenever the buyer is satisfied after purchase depends on the offer¶s performance in relation to the buyer¶s expectations. Satisfaction is a person¶s feelings of pleasure or disappointment resulting from comparing a product¶s perceived performance (or outcome) in relation to his or her expectations. This definition clears satisfaction is a function of perceived performance and expectations. If the

performance falls short of expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. expectations, the customer is highly satisfied or delighted. If the performance exceeds

Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity, with the brand, not just a rational preference. The result is high customer loyalty. How do buyers from their expectations? Buyers expectations are influenced by their past buying experience, friends and associates¶ advice and marketers¶ and competitors¶ information and promises. Some of today¶s most

successful companies are raising expectations and delivering performances to match. These companies are aiming for TCS ± total customer satisfaction. Xerox, for example, guarantees ³total satisfaction´ and will replace at its expense any dissatisfied customer¶s

equipment for a period of three years after purchase. Cigna advertises ³we¶ll never be 100% satisfied until you are, too.´ And one of Honda¶s ads says: ³One reason our customers are so satisfied is that we aren¶t .

Companies realize that customers who are just satisfied will still find it easy to switch suppliers when a better offer comes along. In one consumer packaged goods category, 44% of those reporting satisfaction subsequently switched brands. Those who are highly satisfied with the offer¶s quality and value are much less ready to switch. The fact is that high satisfaction or delight creates an emotional affinity with the brand, not just a rational preference, and this creates a high customer loyalty. The challenge of implementing TCS is to create a company culture in which everyone within the company aims to delight the customer. Unisys, the information management company, recently introduced the term µcustomerize¶ in its ads, and defined it as follows : ³to make a company more responsive to its customers and better able to attract new ones.´ Unisys sees customerizing as a matter of extending information system capabilities to field loacations and other points of customer contact and support. But customerizing a company calls for more than providing good information and customers contact. Ultimately it may require linking staff pay to customer satisfaction. The company¶s staff must be ³converted´ to practicing a strong customer satisfaction.

In addition to tracking their customers¶ expectations, perceived company performance, and customer satisfaction, companies need to monitor their competitors¶ performance in these areas as well. For example ± a company was pleased to find that 80% of its customers said they were satisfied. Then the CEO found out of that its leading

competitor attained 90% customer satisfaction score. He was further dismayed when he learned that this competitor was aiming to reach 95% satisfaction score. For customercentered companies, customer satisfaction is both a goal and a marketing tool. Companies that achieve high customer satisfaction ratings make sure, that their target market knows it. The Maruti has received the number-one rating in customer

satisfaction from J.D. Powers for several years. Although the customer-centered firm seeks to create high customer satisfaction. It¶s main goal is not to maximize customer

satisfaction. First, the company can, increase customer satisfaction by lowering its price or increasing its services, but the result may be lower profits. Second, the company might be able to increase its profitability by means-other than increased satisfaction ( for example, by improving manufacturing processes or investing more in R&D). Third, the company has many stakeholders, including employees, dealers,

suppliers, and stockholders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other ³partners.´ Ultimately, the

company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to delivering at least acceptable levels of satisfaction to the other stakeholders within the constraints of its total resources.

Customer Loyalty
"It takes a lot less money to increase retention of current customers than to find new one because it does take a lot of energy and effort!" Strategize And Plan For Loyalty ± If a company, currently retain 70 percent of it¶s customers and it start a program to improve that to 80 percent, you'll add an additional 10 percent to your growth rate. Particularly because of the high cost of landing new customers versus the high profitability of a loyal customer base, company might want to reflect upon it¶s current business strategy. These four factors will greatly affect it¶s ability to build a loyal customer base: 1. Products that are highly differentiated from those of the competition. 2. Higher-end products where price is not the primary buying factor. 3. Products with a high service component. 4. Multiple products for the same customer.

Market To it¶s Own Customers ±
Giving a lot of thought to the marketing programs aimed at current customers is one aspect of building customer loyalty. When you buy a new car, many dealers will within minutes try to sell you an extended warranty, an alarm system, and maybe rust proofing. It's often a very easy sale and costs the dealer almost nothing to make. For example - Three years ago my house was painted, and it's now due for another coat. Why hasn't the painter called or at least sent a card? It would be a lot less expensive than getting new customers through his newspaper ad, and since I was happy with his work I won't get four competing bids this time. Keep all the information you can on your customers and don't hesitate to ask for the next sale.

Use Complaints To Build Business ±
When customers aren't happy with your business they usually won't complain to you instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint. In many business situations, the customer will have many more interactions after the sale with technical, service, or customer support people than they did with the sales people. So if you're serious about retaining customers or getting referrals, these interactions are the ones that are really going to matter. They really should be handled with the same attention and focus that sales calls get because in a way they are sales calls for repeat business.

Reach Out To Customers ±
Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, stop by to make sure everything's okay. Send a simple newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars. The more they know about you, the more they see you as someone out to help them, the more they know about your accomplishments-the more loyal a customer they will be.

Loyal Customers and Loyal Workforces
Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. I've been fortunate to have the same great people in customer service for years-and the compliments from customers make it clear that they really appreciate specific people in our service function.

1 This study will help to company in analyzing it¶s performance. 2 This study will provide clear picture to company of it¶s satisfied customers and dissatisfied customers. 3 This study will help to company in making future plans & strategies towards its customers. 4 This study will provide cost-benefit analysis to company towards its customers. 5 This study will work as an analysis report for company.



To study the brand preferences of consumers from Beverages available in the market.


To find the extent of brand loyalty of consumers that exists among different Cold Drink brands.


To study the influence of various aspects on buying behavior. These factors are: Price  Taste  Brand name  Packaging


To study the usage & brand awareness of Beverages products in territory


To study the consumer preference for different beverages.

Research in common parlance refers to a search for knowledge. One can define research as a scientific and systematic search for pertinent information on a specific topic. According to Francis Rummer, research can be defined as ³a careful inquiry or examination to discover new information or relationship and to expand or verify existing knowledge. Research is the solution of the problem whether created or already generated, when research is done, some new outcome, so that the problem can be solved.´ This chapter focuses on the various techniques, methods and assumptions used in this study. It sheds light on the research problem, objectives of the study, and also its limitations. The later part of the chapter explains the manner, in which the data is collected, classified, tabulated, analyzed and interrupted so as to each to conclusive results. The study is of diagnostic nature and thus the overall research design is going to be rigid. The design should provide enough provision for protection against biasness and must maximize reliability.

RESEARCH DESIGN:To analysis the buying behaviors of the residents of UP Territory Sample Survey Methods has been employed through other methods are also important. This method is given prime significance in modern research because of its extensive use to study the relationship of different factors, attitudes and practices of society and to explore the problems that cannot be treated by experimental methods. To collect data, a number of techniques are employed under the sample survey method i.e. questionnaire. The increasing use of questionnaire is probably due to increased emphasis by social scientists on quantitative measurement to uniformly accumulated data.

A) Area of study:The area of the study is different Markets of Rohtak in order to collect the Primary data from the respondents. Study area Target Segment : : Banaras Consumers of Coca-Cola Beverages

C) SELECTION OF SAMPLE:It becomes impossible to contact each and every individual of the population due to limitations of essential resources like time and money. Therefore, the study is preferably allowed down to a representation sample to make the study more manageable. Keeping in the view the objectives and resource limitation of the study, 50 respondents were considered. Respondents 50

The selected sample is representative of the population and is accurate and practicable. D) SAMPLING PLAN:The following factors will be taken into consideration within the scope of sampling plan: I Sampling Unit: It defines the target population that will be sampled i.e. it answers who is to be surveyed. In this study, the sampling unit is youth with in the age group of 18-25 years. II Sampling Size: - It indicates the numbers of people to be surveyed. Though

large samples give more reliable results than small samples but due to constraints of time and money, the sample size was restricted to 50 respondents. Probability sampling can be of following types: y y y Simple random sampling Stratified random sampling Cluster (area) sample

In this case, stratified random sampling was done since the respondents will classified into well defined classes or strata that were distinct from each other.

E) COLLECTION OF DATA: After the research problem has been defined and the research design has been chalked out, the task of data collection begins. The data can be collected mainly through primary sources, but it was supplement with secondary data. I Primary data collection:

Primary data is the data which is collected through observation or direct communication with the respondent in one form or another. These are several methods for primary data collection like Observation Method, Interview Method, through schedules, through questionnaires and so on. II Secondary data collection methods:

Secondary data is collected through y y y Magazines Journals Portals

1 Which is your favorite brand? Response Coca-cola Pepsi others %age 50 40 10


50% 40%

Coca-cola Pepsi others

Interpretation: From the above graph 50% respondents like coca-cola, 40% like Pepsi while 10% like other brands of drink brand.

2. Why do you prefer this brand? Response Quality Price Different Flavour others %age 40 20 20 20

20% 40% 20% 20% Quality Price Different Flavour others

Interpretation: From the above graph 40% of the respondents prefer this brand because of its quality, 20% prefer this brand due to Price, Different flavor and other reasons.

3. How frequently do you use? Response Daily with in a week With in a month occasionally %age 40 20 20 20

20% 40% 20% 20% Daily with in a week With in a month occasionally

Interpretation: From the above graph 40%used to drink daily, while 20% used to with in a week, with in a moth while also 20% used occasionally.

4. How many bottle you drink in a month? Response 1-5 5-10 More than 10 %age 60 20 20

20% 01-May 20% 60% 05-Oct More than 10

Interpretation: From the above graph 60% respondents drink 1-5 bottle in a month, while 20% drinks 5-10 and more than 10 bottles.

5. How would you rate beverage industry? Response Good Satisfactory Non-Satisfactory %age 60 20 20

20% Good 20% 60% Satisfactory Non-Satisfactory

Interpretation: From the above graph 60% respondent says that beverage industry is good, while 20% thinks that it is satisfactory while other 20% are unsatisfied with the beverage industry.

6. Which brand is most effective in PET bottles? Response Coca-cola Pepsi Others %age 60 30 10


30% 60%

Coca-cola Pepsi Others

Interpretation: From the above graph 60 % respondents says the Coca-cola are most effective in PET bottles while 30% says about Pepsi while 10% like others.

7. According to you which brand is most effective in Glass bottles. Response Coca-cola Pepsi Others %age 50 30 20

20% 50% 30%

Coca-cola Pepsi Others

Interpretation: From the above graph 50 % respondents says the Coca-cola are most effective in Glass bottles while 30% says about Pepsi while 10% like others.

8 .Which brand is most effective in CANN? Response Coca-cola Pepsi Others %age 50 40 10


50% 40%

Coca-cola Pepsi Others

Interpretation: From the above graph 50 % respondents says the Coca-cola are most effective in CANN while 40% says about Pepsi while 10% like others.

9. . Which brand is most effective in JUICE SEGMENT? Response MAAZA SLICE Others %age 50 30 20

20% 50% 30% MAAZA SLICE Others

Interpretation: From the above graph 50 % respondents likes Maaza in juice segment , 30% likes Slice and 20% like other juice.

10. In water segment which is the most consumable bottle? Response Kinley Aquafina Bailey Shree %age 30 30 20 20


30% Kinley

20% 30%

Aquafina Bailey Shree

Interpretation: From the above graph in water segment 30% respondents likes Kinley, 30% likes Aquafina 20% likes bailey and other 20% also preffered Shree water Bottles.

11. How do you come to know about the coke products? Response Advertisement Friends Family Others %age 60 20 10 10

10% 10% Advertisement 20% 60% Friends Family Others

Interpretation: From the above graph 60 % respondents get informed from the advertisements, 20% get informed from Friends and 10% from family and other sources.

12. Which flavor do you preferred most in coca-cola segment? Response COLA ORANGE LIME JUICE %age 40 20 20 20

20% 40% COLA 20% ORANGE LIME 20% JUICE

Interpretation: From the above graph Cola is most preferred brand with Orange, lime and Juice segment.

13. Please specify as per your choice in ques. No.8. Response Coke Fanta Limca Maaza %age 30 30 20 20


30% Coke


Fanta Limca 30% Maaza

Interpretation: From the above graph most likely brand is Coke, while Fanta also likely brand while limca and Maaza is coming with after them.

FINDINGS  The buying behavior of consumer for different brands of Cold Drinks is effected by various factors like price, taste, packaging, brand etc. as shown in Analysis and Interpretation part, in the form of group correlation.  The buying behavior of consumers is also affected by the different type of advertisements. And the most influencing media is electronic media, and from reference group friends are at most influencing position.  Quality is the most important factor which consumers consider while switching over to any other brand of Cold Drinks.  One another finding of the research is that consumers of Coca-Cola of Varanasi are quite hesitant towards the use of unfamiliar brands, whose advertisement they do not see on different type medias.


y . y

This scope of the project was limited to the beverages companies only. The survey also suffers from the inhibition and unwillingness on the part of company personnel to reveal any inside information. The sample size taken in only 50 and hence will not be able to represent the entire population. Respondent were unaware of many terms related to study while asking to them. The time duration could not provide sample opportunity to study every detail of the company.

y . y y

y Advertisements should target the entire family, mainly because it has been observed that irrespective of age and gender, more than 75% of the people have liked the product and look forward to buy it again. y Advertisements should highlight the main features of the product that is the existence of pulp (which is already made prominent in Advertisements); it should lay emphasis on the health and nutrition value of the product and also on the fact that it is as good as fresh fruit juice.


Due to the current prices, an eyebrow raiser for some, the product could be sold in packs of 2 or more and there could be a price reduction.


New flavors can be introduced into the market as early as possible because around 30% of the consumers were eager to know if the drink would come in more flavors and another 10% of the consumers did not like juice segment so they were anticipating the probable launch of other flavors.


After analysis the project, researcher can conclude that: y y Coca Cola is capturing the more share in the market. Other Beverages companies are also in good position but they have to look upon weak points. y y People prefer Coca-Cola product rather than other company product. Reason of holding big market share is that Coca-Cola have more brands, like Juice Segment, Water Bottles and soda also. y Other companies and even Coca Cola to maintain the goodwill in market must emphasis on marketing programmed



1. Kothari, C.R., (2002), ³Research Methodology Methods & Techniques´, Wishwa Prakashan, New Delhi. 2. Panwar, J.S. (2002), ³Marketing In The New Era´, Response Books Publications, New Delhi. 3. Kotlar, Philip (2003), ³Marketing Management´ (11th Edition), Pearson Education (Singapore) Pvt. Ltd., New Delhi. 4. Harsh V Verma ³Brand management´, , Excel books; 2nd edition

Newspaper & Magazines -

y y

Economic Times India Today Times of India

Websites Links

o o o o


NAME-«««««« AGE-««««« 1 Which is your favorite brand? (a) coca.cola (b)pepsi



2. Why do you prefer this brand? (a) Quality (b) Price (c) Different Flavour (d) others

3. How frequently do you use? (a) Daily (b) with in a week (d)occasionally (c) With in a week

4. How many bottle you drink in a month? (a) 1-5 (b) 5-10 (c) More than 10

5. How would you rate beverage industry? (a) Good (b) Satisfactory (c) Non-Satisfactory

6. Which brand is most effective in PET bottles? (a). Coca-cola (b) Pepsi (c)others

7. According to you which brand is most effective in Glass bottles. (a). Coca-cola (b) Pepsi (c)others

8 .Which brand is most effective in CANN? (a). Coca-cola (b) Pepsi (c)others

9. . Which brand is most effective in JUICE SEGMENT? (a). MAAZA (b) SLICE (c)others

10. In water segment which is the most consumable bottle?

(a). Kinley

(b) Aquafina

(c)Bailey (d) shree

11. How do you come to know about the coke products? (a) Advertisement (b) Friends (c) Family (d) Others««. 12. Which flavor do you preferred most in coca-cola segment? (a). COLA (b) ORANGE (c)LIME (d) JUICE

13. Please specify as per your choice in ques. No.8. (a) Coke, Thums up (b) Fanta (c) Limica, Sprite (d) Maaza 14. Any other flavor do you expect from coca-cola? _______________________________________________________________ _______________________________________________________________ 15. Any suggestion from the brand:

_______________________________________________________________ _______________________________________________________________