CHAPTER- 1

INTRODUCTION TO THE TOPIC

OVERVIEW ABOUT COCA-COLA

The introduction of soft drink was due to necessity of traveling particular in the absence of

availability of reliable water. But meaning quietly changed with changing in time. It has

become so, popular commodity fashion & habit instead of requirement of quenching thirst.

The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th

century. They were made from water and lemon juice sweetened with honey. In 1676,

the Companies des Limonadiers of Paris was granted a monopoly for the sale of lemonade

soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft

drink to thirsty Parisians.

Carbonated drinks:-

Soft drinks displayed on supermarket shelves.

In the late 18th century, scientists made important progress in replicating naturally

carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of

infusing water with carbon dioxide to make carbonated water which has 3.4 mg in the

drink[5] when he suspended a bowl of distilled water above a beer vat at a local brewery in

Leeds, England. His invention of carbonated water (also known as soda water) is the major

and defining component of most soft drinks.[6]

2
Priestley found that water treated in this manner had a pleasant taste, and he offered

it to friends as a refreshing drink. In 1772, Priestley published a paper

entitled Impregnating Water with Fixed Air in which he describes dripping oil of

vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide gas, and

encouraging the gas to dissolve into an agitated bowl of water.[7]

Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus

for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating

apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's

apparatus allowed imitation mineral water to be produced in large amounts. Swedish

chemist Jones Jacob Berzelius started to add flavors (spices, juices, and wine) to carbonated

water in the late 18th century.

Soft drink bottling industry:-

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle

tops during the early days of the bottling industry. Carbonated drink bottles are under great

pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide

or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William

Painter, a Baltimore, Maryland machine shop operator. It was the first very successful method

of keeping the bubbles in the bottle.

The Coca Cola Company was incorporated in September 1919 under the laws of the State

of Delaware and succeeded to the business of a Georgia Corporation with the same name

that had been organized in 1892. Coca Cola Company is one of numerous competitors in

the commercial beverages market. Of the approximately 53 billion beverage servings of all

type of consumed worldwide every day. Beverages bearing trademarks owned by or

licensed to company account for approximately 1.5 billion. Coca-Cola,

The corporate nourishing the global community with the worlds largest selling soft drink

concentrates since 1886. Coca Cola Company put his first step in India in 1952 but

withdrew completely in 1977 due to change in Indian Government polices. Again returned

3
 to India in 1993 after a gap of 16 years giving a new thumb up to the Indian Soft Drink

Market. In the same year, the Company took over ownership of the nation's top soft-drink

brands and bottling network. No wonder, their brands have assumed an iconic status in the

minds of the consumers.

INTRODUCTION TO SOFT DRINKS IN INDIA:

Gold Spot considered as the first soft drink, established 50 years ago before all empowering

Coca-Cola entered the company to dominate the scene. It faced no competition and its

euphoric image built up in western countries helped it get ready clientele & glamour. Parle

export private ltd. should be regarded as the first Indian company introducing limca a lemon

drink complimentary to their well entiemched Gold Spot in 1970 which got moderate success.

However, before this, it had also introduced Cola-Pepino which was withdrawn in face tough

competition from Coca-cola.

Coca-Cola serves in India some of the most recalled brands across the world, which include

names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the Schweppes product range.

The acquisition of Thums Up brought some of the leading national soft drinks like Thums Up,

Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this, Kinley mineral water

was launched in the year 2000.

4
THE VALUE CHAIN

5
When Coca-cola bid farewell in 1977, Indian market was open for various cold drinks and

several companies came forward pushing the different in the market. Parle people introduced

their Cola-Thumps Up with a mightily bang saying “Happy days are here again” as if happy

days went away with Coca-cola pure drinks of Delhi, also without loosing much time

introduced pure drinks with Campa Orange and Campa Lemon. Modern bakeries interested

the market Double Seven, Mohan Meakings with Marry and Pick Up & McDowell with

Thrill, Rush and Sprint and Indian Market where there was competition previously a cut throat

competition and heavy advertising was on. Each one was trying their best to be come under

one company with “A Class” products in the field of soft drink business, now after a long gap;

Govt. of India had given permission to the Coca-Cola to start their business in India. Coca-

Cola came with Parle to do business on the Indian soil. They are trying best regaining its

prestige which it had before.

The government has adopted liberalized policies for the soft drink trade to give the industry a

boast and promote the Indian brands internationally. Although the import and manufacture of

international brands like Pepsi and Coke is enhanced in India the local brands are being

stabilized by advertisements, good quality and low cost. The soft drinks market till early

1990s was in hands of domestic players like Campa, Thumps up, Limca etc but with opening

up of economy and coming of MNC players Pepsi and Coke the market has come totally

under their control.

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home

consumption. Fountains also dispense them in disposable containers Non-alcoholic soft drink

beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further

divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated

drinks while mango drinks come under non carbonated category.

The market can also be segmented on the basis of types of products into cola products and

non-cola products. Cola products account for nearly 61-62% of the total soft drinks market.

6
The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, Diet Coke,

Diet Pepsi etc. Non-cola segment which constitutes 38% can be divided into 4

categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime

and Mango.

OPERATING GROUP:-

The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating Groups:

Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling

Investments. Certain prior year amounts have been reclassified to conform to the current year

presentation.

1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB) Interpretation

No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an approximate $65

million increase in accrued income taxes in their consolidated balance sheet for unrecognized

tax benefits, which was accounted for as a cumulative effect adjustment to the January 1, 2007

balance of reinvested earnings.

2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)

No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans

-- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."

3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure

Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation

Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax expense

associated with the repatriation of foreign earnings in 2005 when the previously unremitted

foreign earnings were actually repatriated.

4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest

Entities," effective April 2, 2004.

7
 MISSION OF COCA-COLA

 To refresh the world in mind, body & sprit.

 To make a difference in our product.

 To inspire moments of optimism through our brand and action.

 To create a value in brands & difference everywhere we engage.

 To do everything differs.

 Our product in each hand.

 Being a global leader in beverage.

8
 CHAPTER -2

INTRODUCTION TO THE ORGANIZATION

9
 INTRODUCTION OF COCA-COLA

If we Indians recall our memory there was a time when one was asked for a soft drink,
the brand that comes and gave a knock on our mind was Coca-Cola. Coca-Cola, the word
most admired trademark has maintained its special a sense of belongingness to India, which
had resulted some sort of its monopoly throughout the Indian soft drink market. It has been
said that the internal environment of the industry has been greatly effected from its internal
environment. The same thing was also happen with this famous company. When the
Government policy were in introduce and forced this MNC's to go outside from the India
market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that time
in the country's soft drinks market. How ever after a gap of 17 years, the Coca-cola has
reappeared in the soft drinks market of India, by making itself more strong and confident in
this field.

In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon
10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft
drinks market. Due to a manifold increase in the demand of soft drinks large number of
company has entered into this competitive market scenario.

10
 In India two major companies engaged in soft drinks market are Pepsi and
Coca-Cola. While RC cola is still a novice in the Indian Market, although it being the world
oldest soft drinks manufacturer.

Pepsi-Cola attacked Coca-cola before World War-II. Coca-Cola dominated the

Americans soft drinks industry. Pepsi-Cola was a drink
costing less to manufacturers and with a less satisfactory taste than coke.

During the Second World War Pepsi and Coke, both of them enjoyed a huge sale.
After the war the Pepsi sales started to fall relatively to Coke. The factors which were
responsible for the decline in Pepsi sales were poor image, poor task force, poor quality
control and dull packaging.

It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola was
relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling facility of
Coca-Cola in India was switched on. The Indian people welcomed the come back of their
most loved cola in the country with great enthusiasm and vigor. Coca-Cola market its
relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-Thums up, Sprite,
Limca, Fanta, Mazza, K. Soda,Kwater,Coke.

In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the
supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped than the plant
at Ghaziabad.
RED, IN INDIA:-
Hindustan Coca Cola Beverages Pvt .Ltd., India division under Eurasia Operating Group has
been working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola Company
believes that its success depends on their ability to connect with consumers by providing them
with a wide variety of choices to meet their desires, needs and lifestyles choices. Company
success further depends on the ability of their people to execute effectively, every day.

11
COMPANY GOAL:-
Company goal is to use the Company‟s asset –company brands, financial strength,
unrivaled distribution system, global reach and talent and strong commitment of our
management and associates-to become more competitive and to accelerate growth in manner
that creates value for our shareowners. Company wants to increase his profit and sells.

Coca Cola Company manufactures and sells beverage concerates, sometimes referred to as
“beverages bases” and syrups, including fountain syrups, and finished beverages.

“THANDA MATLAB, COCA COLA”

A 100 YEARS OF THE SURVY GLASS BOTTLE OF COCA-COLA:-

Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga; Tenn
where its first bottling plant was started 100 year ago by two men struck one of the most
lucrative business deals in US history. Joseph Whitehead and Benjamin Thomas offered
Coca-Cola Company owner Asia Candler a dollar for the right to bottle soft drinks in 1899.
Today I billion soft drinks are sold each day in more than 200 countries around the world.

Candler had purchase what would become the Cola Company for $2,300 eight years earlier
from John Pemberton, an Atlanta Phamacist who astonished the world. Candler thought the
bottling Venture would never succeed, but he signed the contract with White Head And
Thomas and way, "and the rest is history", Bob Lovell, vice president of marketing for Coca-
Cola bottling company, United Inc., said in telephone interview from Chattanooga.

Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a Pineapple beverages,
from bottles while he was stationed in Cuba during Spanish American War. When he returned
to Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which was then sold
only as a fountain beverage.

"It occurred to him that Coca-Cola in bottles would be very popular", Lovell said, "Mr.
Candler did not see any future in it because the containers were not sound, but that's how it all
came about. "Thomas and Whitehead promised to pay one dollar for the right to bottle Coca-
Cola, but legend has it that no money changed hands.

12
THE IMAGE:-

The image is communicated all around the world in advertisement on media such as
newspaper, magazines, radio and televisions. The list goes on....

However, image is much than just advertising every person working within the coca-cola
system is part of the image whether one is involved in creating its advertising, making it's
quality products, or selling, merchandizing and distributing its beverage their hard work and
attitude will say something to the people about its product.

COCA-COLA SYSTEM FLOW CHART

Raw Material

Coca-Cola Company

Bottler

Customer

Consumer

In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon 10% and
Orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks market.
Due to a manifold increase in the demand of soft drinks large number of company has entered
into this competitive market scenario.

13
COCA COLA: THE STORY BEHIND:-

Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in Atlanta, Georgia.
The drink was sold ad refreshing elixir at the fountain counter of Jacob's Pharmacy of which
Dr. John Pemberton was part owner, unaware that the pharmacist had given birth to a caramel
colored syrup which is now the chief ingredient of the worlds favorite drink. Today the white-
on-red flow of Coca-Cola is familiar sight in more then 195 countries. The syrup combines
with the carbonate water to fuel a $ 16.2 billion corporation that has captured a 46% Slice of
the global soft drinks market. The company estimates that the drink is served more than 773
million times every day and if all Coke ever produced were filed in standard bottles and
placed end to end it would wrap around the equator 21, 161 times.

The story of Coca-Cola is a story of a drink and its charm with the consumer. The of ecstasy
and again that the drink has caused to those dedicated to its growth Pemberton first managed
to sell and average of 9 drinks per day, though a shop called Jacob's pharmacy, in 1891,
Candler bought Coca-cola company with four companies he formed the coca-cola company
with the initial stock of $100,000. Coca-Cola was registered at the US patent office in 1893,
and began selling at soda fountains for 5 cents a glass of therapeutic refreshment 1894, I got
into bottles, courtesy a candy merchant Joseph Boedenharn of Mississippi.

Five years later; the drink was being bottled on a regular basis under a region wise franchising
system; and its first competitor Pepsi cola, Coca-Cola's first bottling plant opened in
Chatanooga, Tennessee followed by another in Atlanta in 1900. The unique taste of cola was
an outstanding success. Over the next two decade the number of plants crossed 1000. In a bit
to difference the prodect, the company adopted 6.5 ounce, pale green countor bottle designed
by the root glass company of Terri Haute, Indiana. Today it is an intrinsic part of the brand.

The company broadened its horizons when Robert Woodruff the son of a banker who
acquired to Company for $25 million in 1919, assumed charge in 1923. He began by
ungrading bottling operations, brought in innovations like a six-bottle carry home carton, and
gear up advertising support. It was under Wood Ruff that the brand. Known affectionately as
coke by now associated it self with sportive events. By the early 1940's the brand was selling
as the "real thing" to set it self apart from "me to" cola's.

14
As a time went by the company brought out some new aerated drinks. The first one
"Fanta" appeared in the selves in 1960.

Its birth was an accident, the company's German name is an attempt to produce Coca-Cola
without some key ingredients, turned out into an orange flavored drink instead. its strategists
who feared the dependence on just one put a cap on growth welcomed it. While Fanta was
being rolled out the company bought minute made cosrp. Which in 1967 was combined with
Duncan foods to pave way for the Coca-Cola foods. Several beverages followed the most
notable being 'sprite', a lemon drink developed in the late 1950 and formally launched in
1961.

Coca-Cola had diversified the company into businesses and it even had a steam generator and
boi8ler making division. Robert C Goizueta, Cuban born 27 years veteran took over as the
Coca-Cola unlike Pepsi company depended on a single brand. The best insurance policy that
he figured was to let coke evolve to the summer slacking it with variants, even reinventing if
needed. In 1982, the company launched what is now considered among the world's most
successful brand extensions 'Diet Coke', under the leadership of Sergio Zyman, the head of us
marketing. The idea was to retain the loyalty for the health conscious drinker who loved the
taste but hated the calories. After this it came out with cafeeine free versions of its main
drinks. yet in the US the company kept losing ground to Pepsi. zyman, a former Pepsi
marketer argued that the correct strategy was to replace 98 year old with better tasting cola,
label it as "New Coke" and blare the news which is exactly what the company did more a
decode age in 1985. But when placed on the shelves it did not budge. On wide spread protest
it was recalled after 79 days.

The company has about 100 brands in its portfolio but coke, Fanta and sprite account for most
of its sales. In 1994, the real thing's coke sold over 52.5 billion liters. For the taste of it diet
coke along with Coca-Cola light sold 8.5 billion liters, which makes it the world's two top non
cola drinks sold over 6.5 billion liters each. Which sprite aimed at the independent youngster
two does not care what as others drink (the as line "obey you're a thrust"). In 1993, Coca-Cola
reentered India after a 16 years ling exile, four years Pepsi made its debut India. While Coke
plays on brand nostalgia. Pepsi address the young crowd, which unlike a in America is a
dominate ort if the population here.

15
THE COCA-COLA COMPANY:-

The Coca - Cola Company is the world's largest beverage company. Along with Coca - Cola,
recognized as the world's best - known brand, The Coca - Cola Company markets four of the
world's top five soft drink brands, including diet Coke, Fanta and Sprite, and a wide range of
other beverages, including diet and light soft drinks, waters, juices and juice drinks, teas,
coffees and sports drinks. Though the world's largest distribution system, consumers in more
than 200 countries enjoy The Coca - Cola Company's products at a rate exceeding 1 billion
servings each day. For more information about the Coca - Cola Company, please visit our
website at http: // www.coca- cola.com/.

Forward - Looking Statements:-

This press release may contain statements, estimates or projections that constitute "forward -
looking statements" as defined under U.S. federal securities laws. Generally, the words
"believe," "expect," "intend," "estimate," "anticipate," "Project," "will" and similar
expressions identify forward - looking statements, which generally are not historical in nature.
Forward - looking statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from The Coca - Cola Company's historical experience and
our present expectations or projections. These risks include, but are not limited to, changes in
economic and political conditions, changes in the non - alcoholic beverages business
environment, including actions of competitors and changes in consumer preferences; product
boycotts; foreign currency and interest rate fluctuations; adverse weather conditions; the
effectiveness of our advertising and marketing programs; fluctuations in the cost and
availability of raw materials; our ability to achieve earnings forecasts; regulatory and legal
changes; our ability to penetrate developing and emerging markets; litigation uncertainties;
and other risks discussed in our Company's filings with the Securities and Exchange
Commission (the "SEC"), including our Annual Report on Form 10-K, which filings are
available from the SEC. You should not place undue reliance on forward - looking statements,
which speak only as of the date they are made. The Coca Cola Company undertakes on
obligation to publicly update or revise any forward - looking statements.

16
 ORGANIZATIONAL STRUCTURE

CHAIRMAN

PRESIDENT

VICE PRESIDENT

R.G.M.

A.G.M.

I.S.M F.M. S.M. P.M. H.R.M.

.

M.O.E. A.S.M. S.E.

S.E. S.E. S.E.

17
Where,

R.G.M. : Regional General Manager

A.G.M. : Area General Manager

I.SM. : Information System Manager

F.M. : Finance Manager

S.M. : Sales Manager

P.M. : Production Manager

H.R.M. : Human Resource Manager

A.S.M. : Area Sales Manager

M.O.E. : Marketing Operation Executive

C.D.E. : Cold Drink Executive

S.E. : Sales Executive

18
PRODUCT PROFILE OF COCA COLA:-

The product range of the coke has listed brands:

Coke : 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt

Thumps UP: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Limca: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Fanta: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Sprite: 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Mazza: 250 ml, Tetra Pack

Diet Coke: 330ml, 1.5 lt, 2lt.

Kn. Soda: 300ml, 500ml,

Kn. Water: 500ml, 1lt, 2lt,

Some facts About Coca Cola Pvt Ltd:-

Head office Atlanta (U.S.A)

Corporate office Enkay Towers,
Udyog viharV,
Gurgaon,Haryana
Chief Executive officer Alex von Behr
Total Investment Rs.3200 Crore
Owned Bottling Plants 35
No. of Franchisees 16
No. of Employees 6000

19
THE FUTURE OF COCA-COLA:-

While dong business overseas offers Coke wonderful growth opportunities it also has its own
disadvantages. The economic slowdown in various overseas markets and the strong dollar had
their impact on Coca-Cola revenues and bottom line in 1999. But the company optimistic
about the future.

Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola Company says, "This
past year 1999 has been a challenging period for the Coca-Cola Company as economic
environment became more uncertain in the later part of 1999, we strongly believe that our
fundamental opportunities for long term growth have not changed".

As long as maximization of share holder wealth remain coke's focus for its future4 is assured
Goizueta had stated and proven to the world that focus on shareholder wealth does more good
to the company than focus on revenues and it is not hat coke does not enjoy volumes for it is
world's No. 1 soft drink manufacture. It is not content with this title and is aiming at higher
volumes year after year. Surely coke will continue to grow. Point on Roberto had reduced the
company basically to its trademark and the returns are so astronomical as to be off the boards.
It just absolutely added a jet engine to their performance.

COKE'S BOTTLING STRATEGIES:-

In the soft drink business the bottlers are responsible significant extent for ensuring the
availability of the products. Bottlers are supplied with concentrate to which they add aerated
water and bother ingredients before packing and sealing either cans or bottles. Bottlers play a
strategic role in the success of soft drinks companies and this was not far from Goiueta's mind.

In 1986 the company merged some of its company owned bottling operations with two large
ownership groups that had been put up for sale. All these bottling activities were combined to
from its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling operations. The
Coca-Cola Company took 49 percent equity stake in Coca-Cola Enterprises enabling it to
retain its own balance sheet.

20
MARKET PLACE:-

More than a billion times everyday, thirsty people around the world reach for Coca -Cola
products for refreshment. They deserve the highest quality-every time. Our promise to
deliver that quality is the most important promise we make. And it involves a worldwide,
yet distinctively local, network of bottling partners, suppliers, distributors and retailers
whose success is paramount to our own. Our investment in local communities in over 200
countries totals billions of dollars in jobs, facilities, marketing, the purchase of local
goods and services, ands local business partnerships, always and everywhere, we pursue
continuous innovation in the products we offer, the processes we use to make them, the
packages we develop and the ways we bring them to market.

COMPETITOR:-
The biggest and perhaps the only serious for the coca-cola worldwide has an
already been Pepsi. In India, as per as the Cola segment is concerned the with the biggest
competition to coke comes from its brands of Pepsi viz. Pepsi and Mirinda. Thums -up,
which was the leading brand of Parley product, was acquired by Coca-Cola just over a
year ago to bolster its market share in India. Today, Thums-up along with coke, the
leading brand of the Coca-Cola Company, other still competition to Pepsi, which despite
this stiff competition is still by far the single most popular Cola drink in India

With both the companies being backed fully by the parent concerns based in the
united state, the fight to become the dominant player in the huge Indian Soft drink market
continues unabated. Aggressive ad campaign's, sale-promotion, schemes for retailers are
just some of the strategies being adopted by the two companies to outwit each other and
grab and large share of the market.

In the Cola segment, which occupies by far the largest chunk of the soft drink
market in India, the market share of Coke is 60%while the market share of Thums -up is
32.16%. The market share of Coke in this Cola Segment is 27.84%. The remaining
market share is occupied by the other brands, which constitute about 14% of the Cola
market share.

So Coca-Cola with its two brand clubbed together i.e. Thums-up + Coke occupies a
combined market share of 60% (32.16% + 27.84%)

21
which is just higher than the market share occupied by Pepsi on the all India
basis.

The market share for the Cola segment of different in India is given in Graph below:

The fight between the Rs. 1,000 Crore Pepsi co. India. Pepsi and Coca-Cola India, The
fully owned subsidiary of the $ 18.55 Billion Atlanta based "The Coca-Cola' company to
become India's No. 1 player seems likely to continue unabated over the next four years".

PEPSI PROFILE:-
Pepsi Co. Inc. was founded in the year 1965. Major products of the new company are
Pepsi Cola. Diet Pepsi and Mountain Dew. Pepsi entered the Indian market in 1992 and
now is the market leader with a market share of 26.5 percent in the cola segment. Pepsi is
in between the two of it's closet competitors as far as marketing strategies are concerned.
Pepsi is an international drink with Indian imagery in it's communication Traditional
focus of Pepsi has been on the early teenager with a gender skew more to the female.

Pepsi is by far the more aggressive player in the market. With in your face advertising
continuous event marketing targeting the new generation and eye catching
merchandising. It's got its selling strategy well mapped out.

The company has always been innovating it's ad campaigns which has helped the
company to get top of the mind recall. From "The choice of the new generation" to the
"Freedom" campaign the company has been able to Indianise the brand. With the help of
promotional schemes Pepsi has managed to keep the brand alive and has not let it become
old. During 1995 the total ad spent by the company was Rs. 6.98 crore only on television
Pepsi has set aside Rs. 8 crore for its advertising programme in the run up to and during
the cricket world cup.

22
Product lines of Coke& Pepsi are as follows:-

Pepsi Brand Name

pepsi pepsi Diet mirinda mirinda lime 7 up Slice

pepsi
pepsi Diet mirinda

mirinda lime 7 up
Slice

FLAVOUR COKE BRAND PEPSI BRAND

Cola Coca-Cola Pepsi

Thums-up Pepsi diet

Coke diet

Orange Fanta Mirinda

Cloudy Lemon Limca Mirinda lime

Clear lime Sprite 7up

Mango Maaza Slice

23
COMPETITIVE AREA:-

The soft drink market all over the world has been witnessing a neck to neck battle between the
two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers are
trying hard to have to major chunk of the pie of carbonated soft drink market. Both the players
are spending their energies in building capacity, infrastructure, promotional activities etc.

Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft drink
markets in the world and enjoying leadership in terms of market share. But the Coca-Cola
people are finding it hard to keep away Pepsi, which has been narrowing the gaps regularly.
The two are posing threats to each other in every nook and corner of the world. While Coca-
Cola has been earning most of its bread and butter through beverage sales, Pepsi has a multi
products portfolio with some portion from the same business.

The two warriors are face to once again here in India with different strategies and tactics to
attack the rival. Coca-Cola is focusing upon the joint ventures with the existing bottlers
(FOBO) franchise owned bottling operations to enhance its control on manufacturing and
marketing of its products range and attain the quality standards of its class.

Countering it Pepsi has taken the battle its own hands by floating as investment of $ 95 billion
to set Pepsi Company. India holdings, as subsidiary for (COBO) Company owned bottling
operations. Both the companies are following different path to reach the same destiny i.e. to
fetch the bigger portion of aerated soft drink market. Both consider India

a huge potential market, as per capita consumption here is a mere 3 serving annually against
the world average of 80. Therefore, they are putting in their best efforts to woo the Indian
consumer who has to work for 1.5 hours to buy a bottle of soft drink. In comparison to the
international norms minutes, a major hurdle to cross over for both the athletes for getting No.
1 position comparison tot he inter. Coca-Cola is well set with its 53 bottling sites through out
the country giving tit an edge over competition by processing a well-built bottling and
distribution set-up. On the other hand, Pepsi, with two more years in India, has been able to
set an image of a winner in India and has been able to get the pulse of the India soft drink
market. The soft drink giants are leaving on stone unturned and her for the long terms.

Coca-Cola has been penetrating the market through its wide product range with a
determination to change consumption pattern of soft drink in India. Firstly, they upgraded the
whole industry by introduction 300 ml bottles, which in turn had given the industry a booming
growth of 20% as compared to the earlier 5%. They want to develop a coca culture here and

24
are working on a strategy to offer soft drink in every possible package. In Coca-
Cola camp, the idea of competition has not come from Pepsi, but from the other beverages
such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite aggressive in its approach to Indian
Consumer. They are desperately working on the strategy to be winners in the hot cola war
between two big barons. According to Pepsi philosophy, it's the madness that encourages
executive to think, to conjure up those creative tactics to knock the fizz out their competition.
Pepsi had plumbed a large on the visibility of its blue red and white logo. They have been
going with aggressive marketing by putting Sachin Tendulkar, Akshay Kumar and now
Shahrukh Khan in their advertisement to endorse their brand, the role models for its targeted
consumer the teenagers. They have increased the fizz in the market place by
introducing the dispensers called Fountain Pepsi and has been enjoying a lead over its rival
there.
Coca-Cola on the other hand, has been working on the saying slow and steady wins the race's
side by retailing to every more of its competitor. They have procured the shield of Thums-Up
with a handsome market share in Indian soft drink market.

Countering Pepsi's international commercial that used two chimpanzees to cock a snoop at
coke, Thums-up come with the ad line, Don't be Bandar, taste the Thunder. Also Thums-
Up has been positioned now very near to that young image of Pepsi and giving it a though
time.
These cool merchants have put everything on fire. It Coke got the status of the official
drink of wills. World Cup, Pepsi blushed as nothing official about it. As Thums -Up
projected as 'Saaree Jahan Se Achcha' Pepsi was passionate enough with 'Freedom to be'
and now the "Yeh Dil Mange More" when Thums-Up came with Thunder Blast, the other
offered 'Pepsi Stuff Card'. If Red is meant for coke, Pepsi has chosen to be blue.

25
MAIN COMPETITORS

COCA-COLA V/s PEPSI

Coca- Pepsi
Cola

Total Investment in India Rs. 250 Crores Rs. 500 Crores

New Investments Rs. 2400 Crores Rs. 300 Crores

Number of Employee 140 2400

Number of owned bottling Plants 9 11

Number of Franchisees 54 15

Number of Fountain 1500 4000

Total Investment by bottlers Rs. 125 Crores Nil

New Plants Planned Nil 6

26
 (Year of 2014-15 )
Overall volume of Coca-Cola products have increased by 40% whereas the industry
growth rate is 20%. Last year total sale of soft drink Industry in India was approximately
170 million crates. Out of these around 60% was of Cola and other 40% was of non-Cola
Brands.

Sources of Data :- This Last Year data is provided by Sales Executive of

Company.

MARKETING MIX:-

Prof. Neil H Barden defines marketing mix as 'the appointment of effort, the combination, the
designing and integration of the elements of the marketing into a programme of mix which
will best achieve the objective of the enterprise at the give time."

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objective
of in the target market. The marketing problems are analyzed:
1. By utilizing the important forces emanating from the marketing operation of an enterprise.
2. By adopting producer & for an efficient marketing programme.

ELEMENTS OF MARKETING MIX :-

The marketing mix denotes a combination of various elements which in their totally
constitute affirms marketing system. McCarthy popularized a four factor classification of the
se tools called the four P"s, product, price, place promotion.

27
PRODUCTS:-
 Product variety
 Quality
 Design product
 Brand name
 Feature
 Packaging
 Size service
 Warranties
 Returns

PRICE:-

 List Price

 Discounts

 Allowances

 Payment period

 Credit teams

PLACE:-
 Channels
 Coverage
 Place assessments
 Locations
 Inventory
 Transports

28
PROMOTION:-

 Sales promotion

 Advertisement

 Sales Forces

 Public relations

 Direct marketing

The particulars marketing variable under each P are shown below:

4 Ps 4 Cs

 PRODUCT  CUSTOMER NEED AND

 PRICE WANTS

 PLACE  COST TO THE

 PROMOTION CUSTOMER

 CONVENIENCE

 COMMUNICATION

DISTRIBUTION IN THE COCA-COLA SYSTEM:-

GETTING PRODUCTS TO MARKET

One of the value of the coca-cola system is presence that coca-cola should exist everywhere.
In the words of former CEO-India operations - Richard Nichoilas, "Our goal is to have
coke available within an arm's reach of desire". To fulfill this gool, coca-cola not only
produces products, but also has an effective systems to distribute them all over India.

DISTRIBUTION:-

Distribution Sales + Delivery + Merchandising + Local Account Managemetn.

Distribution of Coke's products includes the activities of sales, delivery merchandizing and
local accounts management. These are two major types of distribution systems.

29
 (i) Direct and Indirect:-

In direct distribution, the bottler partner direct control over the activities of sales, delivery,
merchandizing and local account management.
In indirect distribution, an organization which is not a part of the coca-cola system has control
of one or more of the distribution elements (Sales, Merchandizing and local accounts
managements).

With Direct distribution there are two types of sales:-

Advanced sales and conventional sales. :-

In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and Local
Accounts Management) are performed by the same persons.

In advanced sales, sales and delivery are performed by different people within the coco-cola
system.

Difference between a Customer and a Consumers.

 A consumer is some one who drinks coca-cola products.
 A customer is a business location which sells or serves coca-cola products to consumers.

MERCHANDIZING:-

One the products are delivered to the customer's they are promoted at the point-of-purchase to
maximize the company's sales opportunities, merchandizing involves looking at the
presentation of the products through the eyes of the consumers. It is an on-going process that
help the company present its products properly to the consumers in the market place for
instance, is the display attractive? Are the product neatly organized.

30
PRESENTING THE PRODUCTS:-

Coca-Cola presents its products for sale in four different ways. They are as follows:
 Secondary Display
 Coolers
 Vending Machines
 Post Mix / Pre Mix

INDIA'S RELATIONSHIP WITH COCA-COLA:-

Just after independence, the Maharaja of Patiala oversaw his coca-Cola-Cola hoarding from
his huge, ornate palace, Coca-Cola export representative Frank Harrold, was awed by the
Maharaja's opulent life style. In 1993 after Coca-Cola returned to India after a 16 years
absence (beorge Fernandes threw the company out of the country in 1977 on the pre text that
it had refuse to divalge its formula to Indian officials), CEO of the Coca-Cola Company,
Robesto boirueta "Salivated over a virtually untapped market of 840 million people".

PROMOTION : THE COCA-COLA WAY

Goal for the 90's :-

"To place coca-cola within an arm's reach of desire.

Consumer activity clusters:-

 Grocery shopping
 Other shopping & services
 Eating and drinking Entertainment/ Recreation. Leisure
 Travel / Transportation/ Hospitality
 Educational
 At Work

31
The 3A's:-

The strategy for reaching in creasing numbers of consumers in India is based on the belief that
consumers will buy our products it they are Available, Affordable and Acceptable.

Strategies for the 3A's:-

 Focus on the consumer and customer,

 To provide quality customer services, and caring about the quality of performance in
respective jobs.
 Caring enough about what we do, to it the best we know how.

The 3A's is Coca-Cola underlying strategy for meeting its goal to reach increasing numbers of
consumer's. How does coke position its limited resources to help meet its good. Let us explore
the specific ways in which the Coca-Cola system addresses each of the 3A's.

AVAILABILITY:-

Some of the way sin which the Coca-Cola Company hopes to increase availability of its
product include improved or innovative packaging, dispensing systems, distributions system,
marketing.

AFFORDABILITY:-

The ways to address affordability include pricing decisions, as well as resource management.
To make its product available at a price affordable to the consumer. Continually processes
more efficient and therefore more cost-effective.

ACCEPTABILITY:-

Making coca-Cola brand products the beverage choice for any occasion's depends on a variety
of strategies to reach the target audience. The common strategies adopted to effect
acceptability were though sponsorships, promotion youth market activities, community
programs, and other activates.

32
 Coca Cola mission, vision and values outline who they are, what they seek to
achieve, and how they want to achieve it. These provide a clear direction for the
Company and help ensure that they are all working toward the same goals.

MISSION:-

 Everything Coca Cola do is inspired by their enduring Mission:

 To Refresh the World...in body, mind, and spirit.

 To Inspire Moments of Optimism...through their brands and their actions.

 To Create Value and Make a Difference…everywhere they engage.

VISION:-

To achieve sustainable growth, Coca Cola has established a Vision

with clear goals: -

Planet : Being a responsible global citizen that makes a difference.

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. Profit:
Maximizing return to shareowners while being mindful of our

33
VALUES:-

Coca Cola is guided by shared Values that they will live by as a company and as individuals:

 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”

34
Marketing strategy of Coca cola – Coca cola marketing
strategy

Coca Cola is world‟s leading soft drink maker and operates in more than 200
countries around the world. It sells a variety of sparkling and still beverages.
It generates 60% of its revenue and about 80% of its operating profit from
outside the United States. It has strong brand recognition across the globe.
According to business insider, approximately 94% of the world population is
aware of the red & white logo of Coca Cola.
Segmentation, targeting, positioning in the Marketing strategy of Coca Cola
Segmentation helps the brand to define the appropriate products for specific
customer group; Coca Cola doesn‟t target a specific segment but adapts its
marketing strategy by developing new products. Similarly it uses mix of
undifferentiated & niche targeting strategies in order to drive sales in the
competitive market. Its product Cola is popular worldwide & is liked by
people of all age group while the diet coke targets niche segment for people
who are more health conscious. Coca Cola uses competitive positioning
strategy to be way ahead of its competitors in the Non-alcoholic beverages
market.

35
 Marketing mix – Click here to read the Marketing mix of Coca Cola.
SWOT analysis – Click here to read the SWOT analysis of Coca Cola.
Mission – “Our Roadmap starts with our mission, which is enduring. It
declares our purpose as a company and serves as the standard against which
we weigh our actions and decisions.
 To refresh the world.
 To inspire moments of optimism and happiness.
 To create value and make a difference.”
Vision– “Our vision serves as the framework for our Roadmap and guides
every aspect of our business by describing what we need to accomplish in
order to continue achieving sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the
best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people‟s desires and needs.
 Partners: Nurture a winning network of customers and suppliers,
together we create mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping
build and support sustainable communities.
 Profit: Maximize long-term return to shareholders while being mindful
of our overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.”
Tagline – “Refreshing the world, one story at a time”.
Competitive advantage in the Marketing strategy of Coca Cola
Coca Cola has competitive edge over its competitors in terms of Operations,
Cost control, Brand portfolio, Channel marketing, Collaborative customer
relationship.
Operations– Outsourcing the bottling operation to the franchisee, FEMSA
which is the largest Bottling franchisee of the Coca-Cola trademark beverages

36
in the world. It helps the company in capturing important growth
opportunities in under-developed non-carbonated beverage segment and in
strategic acquisitions by entering into agreements to jointly acquire
companies with The Coca Cola Company.
Cost control – Its diversified product portfolio, Outsourcing operations &
economies of scale helps it in cutting its operational cost & increase its
profitability.
Coca-Cola takes 'One Brand' marketing strategyglobal with 'Taste the Feeling'
campaign. Coca-Cola is launching its first global marketing campaign in more than a decade
as it takes its 'One Brand' strategyglobal with the introduction of the new 'Taste the Feeling'
strapline.

37
 PROMOTION STRATEGIES

GETTING SHELVES

They get or purchase shelves in big departmental stores and display their products in that
shelves in that style which show their product more clear and more attractive for the
consumers.

EYE CATCHING POSITION

Salesman of the Coca Cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.

SALE PROMOTION

Company also do sponsorships with different college and school‟s cafes and sponsors their
sports events and other extra curriculum activities for getting market share.

UTC SCHEME

UTC mean under the crown scheme, Coca Cola often do this type of scheme and they offer
very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This
scheme is very much popular among children.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

1. Direct selling

2. Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. They have
almost 450 vehicles to supply their bottles. In this type of selling company have more profit
margin.

38
Indirect Selling
They have their whole sellers and agencies to cover all area. Because it is very difficult for
them to cover all area of Pakistan by their own so they have so many whole sellers and
agencies to assure their customers for availability of Coca Cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these
includes:

 Vizi cooler
 Freezers
 Display racks
 Free empty bottles and shells for bottles
ADVERTISEMENT

Coca Cola Company use different mediums

 Print media
 Pos material
 Tv commercial
 Billboards and holdings
PRINT MEDIA

They often use print media for advertisement. They have a separate department for print
media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the
stores and in different areas.

TV COMMERCIALS

As everybody know that TV is a most common entertaining medium so TV commercials is

one of the most attractive way of doing advertisement. So Coca Cola Company does regular
TV commercials on different channels.

39
BILLBOARDS AND HOLDINGS

Coca Cola is very much conscious about their billboards and holdings. They have so many
sites in different locations for their billboards.

COMPARING THE MARKETING STRATEGIES OF COKE WITH

PEPSI

Coca-Cola India and Pepsi India are locked in a bitter battle for market share. So far
Pepsi has won, outselling Coke 27.1% to 10.8% (All India Market Share) But Coke's new
strategy adopted in India which gives Thums Up the local brand it acquired in 1993-94 from
Parle exports - top marketing priority which would hurt Pepsi in the long run.

COKE'S STRATEGIC MOVE SINCE 1993

Four years after it entered the Rs. 1,800 crore Indian soft drinks market, Coca-Cola is
finally waking up to reality and duplicating the strategy of arch rival Pepsi. In these four
years the company has successfully managed to fritter away the 69 per cent market share of -
the five Parle brands -- Thums Up, Limca, Citra, Gold Spot and Maaza -- which it bought
from the Chauhan brothers. Wrong strategy : trying to push only its US brand, ignoring the
Indian-acquired brands and failing to strike a chord with Indian consumers by not using
localised advertising campaigns.

Donald Short, CEO of Coca Cola India. Mr. Short is trying to achieve what his
predecessors, Jaydev Raja and Richard P. Nicholas Ill, could not. His new mantra: do in
India as Pepsi does( as the famous saying at Coke Atlanta, do as the Atlantans do). Like
Pepsi, Coke has started sponsoring local events and staging frequent consumer promotion
campaigns. It has started picking up equity stakes in its bottlers to guarantee them financial
support though its bullying tactics on paying compensation have drawn sharp criticism. It has
finally started releasing locally-created ads, using Indian idiom to strike a chord with
consumers. And finally it has started pushing its strike a chord with consumers. And finally
it has started pushing its Indian brands -- led by Thums Up -instead of focusing on only its
flagship.

After years of eating, sleeping and drinking movies, cricket and Coke, Coca-Cola is
finally waking up to the strength of the local brands that it took over from Ramesh Chauhan in
1994. When Coca-Cola came to, India it had hoped to continue its legendary rivalry with
Pepsi world-wide and it was expected that the India would fade out. So Coca-Cola pushed its

40
 own brand. But somebody forgot to narrate the same script to Indian
consumers who insisted that they wanted their thunder back. Coca-Cola has now reconciled
to the fact that Thums Up and Limca are the two most popular soft drink brands in India,
especially in the western and southern regions. Keeping this in mind the company has lined
up an aggressive marketing campaign to push the two brands in the domestic market.

Mr. Short's new strategy, Thums Up contributes 40 per cent of Coca-Cola India‟s
turnover while Limca accounts for another 17 per cent. Coke itself accounts for 23 per cent.
The balance comes from Coke's other brands, including Fanta. Citra and Maaza. In terms of
all-India market share. Thums Up has 16 per cent whereas Coke has 10.8 per cent. As much
as 30 per cent to 35 per cent of Coca-Cola India‟s expenditure in 1998 will be devoted to
promoting Thums Up. Limca will command 15 per cent to 18 per cent, marginally lower than
the 20 per cent to 25 per cent which will be spent on promoting Coke.

Despite being a global brand, Pepsi has built its success on meeting the Indian
consumer's needs, particularly in terms of making the brand synchronize with localized events
and traditions. By offering free Pepsi with idli it tried to beat Thums Up and Coke in the
south. In Calcutta, where Coke always has a large hold, Pepsi linked itself with neighborhood
cricket tournaments. In Delhi it associated itself with Holi and offered free colour sachets
with Pepsi bottles. Says Mr. Sinha, CEO of Pepsi : “We recruited local salesmen to sell our
products since to sell consumer products you need local experience.” That is why Pepsi's
events such as the Spot the Mirinda Man contest was such a huge success.

By contrast, Coke deliberately chose to bring in expatriates. Instead of trying to create

a bond with customers with low impact activities it resorted to high impact activities like
sponsoring the World Cup and the Olympics 'in 1996. But unfortunately none of these helped
it to raise its customer base despite the high advertising spend. In fact Pepsi benefited more
by releasing the “Nothing Official About It” campaign during the same period. While Pepsi's
market share rose from 24 per cent to 26.50 per cent in just two months after the World Cup,
Coke's increased from 12 per cent to just 12.5 per cent.

Coke's lack of freedom to take any decision independently of its Atlanta headquarters
was also one of the major reasons why it has not been as nimble-footed as Pepsi in evolving
marketing strategy in a rapidly changing industry. Flexibility is the weapon which Coca-Cola
has lacked since all controls are vested with Atlanta. Coke's trade promotions have followed a
predictable pattern, offering fat margins to retailers for a limited period of time -- without

41
 exploring alternatives that raise the level of involvement for the seller as well as the
consumer.

In sharp contrast, flexibility has always been one of the most important weapons in the
hands of Pepsi Company India. Every manager and salesperson has the authority to take
whatever steps he or she feels will make consumers aware of the brand and increase its
consumption.

Says Mr. Sinha : “AII we do is give people a budget in which they have to work. How
they go about is completely up to them. We are performance oriented and look at only results,
not at the methods adopted to get those results.”

The biggest thorn in Coke's strategy has been its long and bitter battle with its bottlers.
The conflicts have finally settled down to a pattern that reflect its global experience. Coca-
Cota India is floating two subsidiaries, Bharat Coca-Cola and Hindustan Coca-Cola which
will act as holding companies for most of its bottling operations. Thus giving the
transnational ownership and control over this crucial part of its operations. Earlier the
company had made the mistake of demanding huge investments from its bottlers without
worrying about the returns, assuming that they would be willing to sustain losses as long as
Coca-Cola did. In the process, it alienated the former Parle franchisees, the Chauhans.

According to Mr. Chauhan there is a big difference between the kind of investments
Coke has in mind and the kind of investments made by him. Coca-Cola is now in the process
of buying out bottling plants located in Patna and Kanpur, to of its important northern
markets. Mr. Sinha reveals his relations with the bottlers by saying that they are his partners
and the management listens to them, which Coke last year failed to do. Every member of
Pepsi's sales team is meticulously taught the merchandising and display skills that can
leverage the reach of the company's bottling network to achieve high visibility for the product.
Thus Pepsi Company India has used its eight years in India to develop a relationship with its
bottlers that enables it to work in tandem with them. If Mr. Short can now adopt Pepsi's
method of transferring the transnational's expertise to its bottlers, his brands will benefit.

Pricing is another factor in which Pepsi has always had the edge. Pepsi has
consistently used its pricing strategy as an invitation to sample, aiming to turn trial into
addiction. It launched the 1996, its 1.5 liter bottle followed Coke into the market share at Rs.
30 -- Rs. 5 less than Coke's. In both cases, Pepsi raised the price once consumption stabilized,
counting on habit to compensate for the price hike. Coke initially carbon-copied the strategy

42
 by introducing its 330ml. cans in January 1996 at an invitation price of Rs.
15 before raising it to Rs. 18. Mr. Short is now using a lower-priced smaller-sized version the
gain consumers. The 200 ml. Coke launched (so far) in parts of eastern, western and northern
India is priced at Rs. 6, lowering entry-barriers.

According to officials, by launching Thums Up and Limca in a big way, Coke will
gain lost ground. The twin-brand strategy, will help Coke play the pricing game against its
competitors. In the west and east, where Thums Up has a dominant market share, the
multinational will slash the price of Coke which constitutes only a minor share in the overall
volume. A reverse strategy will be followed in the north and south where Coke sells more
then Thums Up.

43
 CHAPTER-4

OBJECTIVES OF STUDY

44
OBJECTIVES OF STUDY:-
 To get the retailer‟s wants in terms of product selling.

 To know effectiveness of the marketing strategy & sales promotions in market.

 Visicoolers survey in rural market of agra region.

 Ensuring the visibility of the product.

 Ensuring the availability of products in outlets.

 Analyzing the effect of scheme.

 Analyzing the effect of discounts.

 Evaluating the competitor‟s strength & weakness in rural market.

 Retailer‟s expectation from company.

PRIMARY OBJECTIVES:-

 To find out to which extent merchandising assets are being used by the retailers in
promoting the product of coca-cola
 To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi

 To study marketing strategies adopted by coca-cola.

 To study customer satisfaction about coca-cola products.

 To study the effect of RED on boosting sales of coca-cola products

 To find out Market demand of Fanta vis-à-vis Mirinda-O

 To find out Market demand of Limca, Sprite vis-à-vis Mirinda-L and 7up

 To find out Market demand of Maaza vis-à-vis Slice.

45
SECONDARY OBJECTIVES:-

 To find out Market comparison of all the available brands of the soft drinks in the
market.

 Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.

TYPES OF RESEARCH:-

Date sources: sources of information are as follows:-

(1) Primary sources:-

Who‟s the primary source??
Retailers are the primary source.

(2) Secondary sources:-

Researcher collected secondary information from Journals of Company, News
papers,Magazines.
Research Approach:-
Researcher followed one approach to collect the information
(1) Survey – Researcher contacted the retailers in the market place to gather the relevant
information.

(2) Number of Retailers contacted – 200 Retailers.

 Survey Area: Kanpur & NEAR BY AREAS
1) Sikandra Agra
2) bhagwan takies Agra
3) Sanay palace Agra
4) Raja mandi Agra
5) Runakata Agra
6) Main market bodala Agra
7) Ram bagh Agra

46
SAMPLE SIZE AND METHOD OF SELECTING SAMPLE:-
Sample size:-
The number of sample is 110 from Agra city, which fulfills the requirement. Each respondent
is treated as a case of detailed analysis.

Sampling design:-

Convenience sampling is used for this study. Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient. This non
probability method is often used during preliminary research efforts to get a gross estimate
of the results, without incurring the cost or time required to select a random sample.

Data collection method:-

For the accumulation of data the sources were primary and secondary data.

Primary Data:-

These data are raw material. They are the measurement observed and recorded as a part of
original study. They are original in character. The investigator or researcher directly collects
this data. The basic form of obtaining this data is by observing and questioning.
The Primary data was a detailed interview schedule with the help of a detailed questionnaire.
The samples were drawn purposively from various areas for the relevance of the study.
Discussions were held with the general, branch manager and executives of the company to
design and execute the research

Secondary Data:-

They are not originally drawn by the researcher as fresh data. These are collected by some
other person for this purpose and published. These types of data can be collected through
various sources.
For this study the secondary data were collected from magazines ,journals , references and
websites and manuals of the Idea.

47
 CHAPTER- 5

SCOPE OF THE STUDY

48
SCOPE OF THE STUDY:-

Study of Management of RED helps the management in the following ways:-

 It improves management‟s ability to plan and control the sales of Coca Cola.

 It will certainly help the strategies for survival and growth of the Company.

 It avoids wastage and underutilization of resources which can be employed profitably.

 It is relevant to inflows and outflows conditions of the Company.

LIMITATION OF THE REPORT:-

I found the following limitations during my actual project execution:-

 More stress was given on the primary data.

 The finding of the survey will be strictly based on the response of the consumers, since
it is difficult to ascertain the authenticity of the statements.

 All the observation and recommendation will be made on the feedback obtained from
the survey.

 The sample for the survey covered subscribers from India only.

 The time for the research was limited.

 The result is limited to the reliability of method of investigations,

measurement and analysis of data.

 People were not interested in filling questionnaire properly.

 It is very small research, which may be insufficient to give the real

picture.

49
 CHAPTER- 5

LITERATURE REVIEW

50
Chapter second deals with the overall review of literature available on the present

topic. It highlights on the research papers, related books and some published and un-published

material. This chapter is divided into three different parts i.e.

A) Review of Research Papers, Magazines and Journals.

B) Review of Books.

C) Review of reports and un-published material.

Review of literature has vital relevance with any research work. Due to literature review the

possibility of repetition of study can be eliminated and another dimension can be selected for

the study. The literature review helps researcher to remove limitations of existing work or

may assist to extend prevailing study.

In order to make the crystal clear and in depth study proper fundamental review is necessary

to gain the knowledge, literature review is necessary therefore the survey of literature has

been conducted based upon that methodology for collecting data and information with

reference to each representative category in the sample is formulated while carrying out the

whole research . The descriptive and diagnostic studies with a stimulating insight backed by

the experience covered in this chapter.

Review of Research Papers, Magazines and Journals: The researcher has referred the several

articles published in various Magazines, Journals, Newspapers as well as the articles on the

websites. An article from Daily Morning News (Daily, TX) dt. January 30, 2007 states that,

PepsiCo inc. maker of the nation‟s second – best selling soft drink, aims to score big with

consumers at Sunday‟s Super Bowl for the first time. PepsiCo‟s soft drink arm, Pepsi-Cola

North America, will sponsor the big game‟s halftime show – this year featuring the artist once

again known as Prince. Frito-Lay Inc of Plano is a unit of PepsiCo, based in Purchase, N.Y.

Beverage industry experts say that even though Pepsi may pay a king‟s ransom for the naming

rights to the show, it will ultimately pay off. “The Super Bowl and the halftime show are great

vehicles to promote brands and build brand equity” said John Sicher, editor.

51
Review of Research Papers, Magazines and Journals: The researcher has referred the

several articles published in various Magazines, Journals, Newspapers as well as the

articles on the websites. An article from Daily Morning News (Daily, TX) dt. January 30,

2007 states that, PepsiCo inc. maker of the nation‟s second – best selling soft drink, aims to

score big with consumers at Sunday‟s Super Bowl for the first time. PepsiCo‟s soft drink arm,

Pepsi-Cola North America, will sponsor the big game‟s halftime show – this year featuring

the artist once again known as Prince. Frito-Lay Inc of Plano is a unit of PepsiCo, based in

Purchase, N.Y. Beverage industry experts say that even though Pepsi may pay a king‟s

ransom for the naming rights to the show, it will ultimately pay off. “The Super Bowl and the

halftime show are great vehicles to promote brands and build brand equity” said John Sicher,

editor. Further an article published in the frontline Magazine (month) issue highlights the

following aspects of the Marketing strategies adopted by the PepsiCo. It states that, for an ad

campaign that started a revolution in marketing, the Pepsi Challenge TV spots of the 1970s

and „80s were almost absurdly simple. Little more than a series of blind last tests, the ads

showed people being asked to choose between Pepsi and Coke without knowing which one

they were consuming. Not surprisingly, given the sponsor, Pepsi was usually the winner. But

30 years after the commercials debuted, neuroscientist Read Montague was still thinking

about them. Something didn‟t make sense. If people preferred the taste of Pepsi, the drink

should have dominated the market. It didn‟t. So in the summer of 2003, Montague gave

himself a Pepsi Challenge‟ of a different sort: to figure out why people would buy a product

they didn‟t particularly like.

What the Researcher found was the first data from an entirely new field: neuromarketing, the

study of the brain‟s responses to ads, brands, and the rest of the message littering the cultural

landscape. Montague had his subjects take the Pepsi Challenge while he watched their neural

activity with a functional MRI machine, which tracks blood flow to different regions of the

brain. Without knowing what they were drinking, about half of them said they preferred Pepsi.

But once Montague told them which samples were Coke, three-fourths said that drink tasted

52
better, and their brain activity changed too. Coke “lit up” the medial prefrontal

cortex – a part of the brain that controls higher thinking. Montague‟s hunch was that

the brain was recalling images and ideas from commercials, and the brand was overriding the

actual quality of the product. For years, in the face of failed brands and laughably bad ad

campaigns, marketers had argued that they could influence consumer‟s choices. Now, there

appeared to be solid neurological proof. Montague published his findings in the October 2004

issue of Neuron, and a cottage industry, was born. Further the article points out that,

neuromarketing, in one or another, is now one of the hottest new tools of its trade. At the most

basic levels, companies are starting to sift through the piles of psychological literature that

have been steadily growing since the 1990s‟ boom in brainimaging technology. Surprisingly

few businesses have kept tabs on the studies – until now “Most marketers don‟t take a single

class in psychology. A lot of the current communications projects we see are based on

research from the “70s,” says Justine Meaux, a scientist at Atlanta‟s Bright House 55 Neuro

strategies Group, one of the first and largest neurosciences consulting firms. “Especially in

these early years, it‟s about teaching people the basics. What we end up doing are educating

people about some false assumptions about how the brain works”

Getting an update on research is one thing; for decades, marketers have relied on behavioral

studies for guidance. But some companies are taking the practice several steps further,

commissioning their own FMRI studies a la Montague‟s test. In a study of men‟s reactions to

cars. Daimler-Chrysler has found that sportier models activate the brain‟s reward centers – the

same areas that light up in response to alcohol and drugs – as well as activating the area in the

brain that recognizes faces, which may explain people‟s tendency to anthropomorphize their

cars. Steven Quartz, a scientist at Stanford University, as currently conducting similar

research on movie trailers. And in the age of poll taking and smear campaigns, political

advertising is also getting in one the game. Researcher at the University of California. Los

Angeles have found that Republicans and Democrats react differently to campaign ads

53
showing images of the Sept. 11th terrorist attacks. Those ads cause the part of the

brain associated with fear to light up more vividly in Democrats than in

Republicans.

That last piece of research is particularly worrisome to antimarketing activities, some of

which are already mobilizing against the nascent field of neuromarketing. Gary Ruskin of

Commercial Alert, a non-profit that argues for strict regulations on advertising, says that “a

year ago almost nobody had heart of neuromarketing except for Forbes readers.” Now, he

says, it‟s everywhere, and over the past year he has 56 waged a campaign against the practice

lobbying Congress and the American Psychological Association (APA) and threading lawsuit

against Bright House and other practitioners. Even though he admits the research is still “in

the very preliminary states”, he says it could eventually lead to complete corporate

manipulation of consumers – or citizens, with governments using brain scans to create more

effective propagandas.

54
 CHAPTER- 6
RESEARCH METHODOLOGY

55
RESEARCH METHODOLOGY

TITLE OF THE STUDY: The title of the study is “Marketing Strategy of Coca-Cola for

Rural Market of AGRA Region an analysis & prognosis”.

According to the title the research problem is “What are marketing strategy & sales

promotion techniques of Coca-Cola for retailers in rural market”.

Type of Research-

Exploratory Because I am this research I am exploring the strategies of company

OBJECT OF THE WORK

Consumption of soft drinks has increased tremendously in India. Every age of group

like it, now days it become a household necessary item.

In field of marketing many kind of surveys are conducted by Coca-Cola team time to

time.

This is end & last feedback for any kind of organization.

By the specific survey, which was conducted by Coca-Cola organization want to know

about the right picture of market of rural agra region? This work study provides

extensive information about the position of company‟s brand in rural agra.

VARIABLES

Marketing variables

1. Display items

2. Visicoolers

Sales Promotion variables

1. Discount for retailers.

2. Scheme for retailers.

56
WORKING METHODOLOGY ROUTE VISIT:-

We visited the routs with the distributer‟s vehicle where the distributer supplies

the products.

I observed the display norms for outlets in all route & each type of outlet.

Every morning I went to one corresponding route & observed all

techniques of selling product to retailers by Coca-Cola salesman & also

try to know the mentality of the consumers and retailers.

I visited flowing route with salesman.

1. J.K.COLD DRINKS CHOMU DISTRIBUTR

2. MADENLAL SATYANARAYAN RINGUS

3. U.P

4. SHRIMADHOPUR

5. SAMOD

6. RENWAL

7. PHULERA

8. NEEM KA THANA

9. HARMADA

10. AJEETGRADH

57
With this work I take interview in that I asked to retailers about visicoolers &

display items.

I asked them about low sales, pesticides effect and other thing.

1. Count the number of emty per outlet.

2. How much empty palace in a shop.

3. Find out new outlet which wants cooler.

4. Find out which outlets owner want to buy and sell Coca-Cola products.

EDS SURVEY:-

In this survey we checked warm and cold stock of coke & Pepsi.

We also checked amtey & annual sales of cold drinks and water.

We tried to solve retailers problem and we checked sales promotion scheme is they

getting.

We also checked sign board, wall painting, rack, stand rack, counter rack & poster.

In last I take consumer & retailers feedback.

58
Analysis

RESEARCH FOR MARKETING SRRATEGY

COCA-COLA MARKETING STRATEGY

Focus on availability of products in market.

Focus on availability of products in outlets.

Coke products visible for consumers.

More focus in rural area.

Regular market vigilance by market developer.

Distribution of product according locality.

Extra focus on monopoly outlets.

Aggressive rural area advertisement.

Social festival in rural areas.

Target core brands.

Satisfy market priorities.

Focus on villages‟.

59
 BRAND ORDER SYSTEM OF COCA-COLA

COLOJ-K

Cola Lemon Orange Juice Kinely

Thums Up Fanta Kinely

Coke

Limca Maaza
Sprite

60
 FLOW OF DISTRIBUTION SYSTEM

Market

Direct Route

Plant Warehouse

Indirect Route

Distributer

Market

DISTRIBUTION @ UTTAR PRADESH

Total market of Rajasthan divided into 8 divisions namely.

Agra, lucknow ,Kanpur, kosi chhata,Mathura,varansi,jhansi

MARKRT ALLOCATION Of Coca-cola

Coca-Cola has concentrate in 4 types of markets

Emerging market.

Like China & India, where there is low per capita income but are a good potential for

investment because of their large size of population.

61
 CHAPTER-7

ANALYSIS & INTERPRETATION

62
 ANALYSIS & INTERPRETATION

FIGURE 1

Out of Coca-Cola and Pepsi Beverages India Limited

whose GSB do you have ?

PBI
11%

Coca-Cola
14% PBI
Coca-Cola
Both
Both
5%
None
None
70%

 Out of the sample size which has been covered only 11 % of the shops had Pepsi‟s
GSB‟s vis a vis to 14 % of Coca-Cola‟s GSB‟s.
 14 % of the sample size had the GSB‟s of both the major players of the soft drink
industry.
 70% of the sample size didn‟t have any of the GSB‟s displayed.
FIGURE 2
Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?

14% 13%

14% Rank 1 Rank 1

Rank 2 49% Rank 2
Rank 3 Rank 3
38%
72%

 72% of the shops having Pepsi GSB‟s got the 1st rank according to their visibility
status on the other hand only 14% of the retailers got the rank 2nd and 3rd each. This
shows that retailers who got the GSB as display material from the company are using
them satisfyingly.
 49% of the shops having Coca-Cola GSB‟s got the rank 1st according to their
visibility status on the other hand 38% of the retailers got the rank 2nd and only 13%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.‟s GSB are being used in more proper way.

63
 FIGURE 3

Out of Coca-Cola and Pepsi Beverages India Limited

whose DPS Board do you have ?

PBI
27%
PBI
Coca-Cola

Coca-Cola Both
None
8% None
62%
Both
3%

 Out of the sample size which has been covered 27 % of the shops had Pepsi‟s DPS
Boards vis -a -vis to 8 % of Coca-Cola‟s DPS‟s.
 3 % of the sample size had the DPS Boards of both the major players of the soft drink
industry.
 62% of the sample size didn‟t have any of the DPS Boards displayed.

*DPS-DISTRIBUTOR PROMOTINAL SIGNAGE*

FIGURE 4
Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?

0% 12%
18%

18%
Rank 1 Rank 1
Rank 2 Rank 2
Rank 3 Rank 3

70%
82%

 82% of the shops having Pepsico. DPS Boards got the rank 1st according to their
visibility status on the other hand 18% of the retailers got the ranks 2nd and nobody
got the 3rd. This shows that retailers who got the DPS Boards as display material from
the company are using them satisfyingly.

 70% of the shops having Coca-Cola DPS Boards got the rank 1st according to their
visibility status on the other hand 18% of the retailers got the rank 2nd and only 12%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.‟s DPS Boards are being used in far more satisfyingly.

64
FIGURE 5

 Out of the sample size, which has been covered 37% % of the shops, had CocaCola‟s
refrigerator vis a vis to 25 % of Pepsi‟s refrigerator. This shows that percentage
distribution of the refrigerators of Coca-cola co. is more than Pepsico. .
 11 % of the sample size had the refrigerator of both the major players of the soft drink
industry.
 27% of the sample size didn‟t have any of the company‟s refrigerators; they are using
their own refrigerators for the chilling purpose.
FIGURE 6
Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?

8% 0%

33%
24%
Rank 1 Rank 1
Rank 2 Rank 2
Rank 3 Rank 3

68% 67%

 68% of the shops having Pepsico. refrigerators got the rank 1st according to their
visibility status on the other hand only 24% of the retailers got the ranks 2nd and 8%
of the retailers got the rank 3rd. This shows that retailers who got the refrigerators as
display material from the company are not using them satisfyingly.

 Only 33% of the shops having Coca-Cola refrigerators got the rank 1st according to
their visibility status on the other hand 67% of the retailers got the rank 2nd and none
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.‟s refrigerators are being used in far more proper way.

65
FIGURE 7

How many Bottles of PBI/ Coca-Cola do you have in

your fridge

PBI, 4260
4500
4000 Coca-Cola, 3368
3500
3000
PBI
2500
Coca-Cola
2000
1500
1000
500
0
PBI Coca-Cola

FIGURE 8

Availabity Comparision between Pepsi and Coca-Cola at the

Outlets - using Coca-cola Merchandising Asset

Coca-Cola

44% PBI
PBI Coca-Cola
56%

 In the CocaCola‟s refrigerators 56% of the Pepsi bottles were found. This shows that
CocaCola‟s refrigerators are not being used to optimum by the retailers in promoting
CocaCola‟s products.

66
FIGURE 9

Reasons for not optimum use of Refrigerator / Ice Box

at outlets ?

Shortage
Shortage
13%
Other
Problem of the Problem of the Empty
36%
Empty bottle bottle
17% Irregularity of the Salesman

Other
Irregularity of the
Salesman
34%

 While giving the reasons for not using the Coca-Cola‟s refrigerators 34% of the
retailers blame it to the lack of regular services from the company (irregularity of the
salesman), 17% of the retailers voted to the problem of the empty bottles of Hindustan
Beverages India, 13% voted for the shortage of the different packing.

 Despite of all the above reasons a huge segment 36% blame it to different other
reasons for below optimum use of refrigerators.

 Out of the 36% other major reasons low demand (33%) and lesser capacity
refrigerators (34%) got the maximum share.

 Despite of all the above there are even major number of retailers who blame it to the
unfulfilled promises from the company professionals.

67
FIGURE 10

Approximate sale of the retailer

100
90
80
70
60
50
40
30
20
10
0
0.5 to 2 3 to 5 6 to 10 More Than 10

FIGURE 11

Approximate sale of the retailer

More Than 10 0.5 to 2

18% 8%

6 to 10 3 to 5
28% 46%

 The sample size shows that maximum portion (around 46 %) of the retailers whose
sale are between 3 to 5 crates daily and only 8 % are the ones who are selling less that
two crates.

68
FIGURE 12

How the retailler gets display material from the

company ?

70

60

50

40

30

20

10

0
Schemes Gift Sharing / Draft Other

FIGURE 13

How the retailler gets display material from the

company ?

Gift
40%
Sharing / Draft
21%

Other
Schemes 6%
33%

 The sample size gives us the brief idea about the pattern of distribution of
merchandising assets by the companies. Most of the retailers (around 73%) are getting
the display material through different schemes or as the gifts.

69
FIGURE 15

Market Demand of different packings of Soft-Drinks

2lt
200ml
26%
30% 2lt
1lt
500ml
1lt 300ml
7% 200ml
300ml 500ml
23% 14%

 This gives us an indication, where the better prospects lies. In which particular type of
packing little innovation can do wonders. This provides us with an idea where we
should concentrate.
 The sample size shows that there is huge demand of 2lt pack (26%) and 200ml bottles
(30%).
 300ml bottles with 23% shares the 3rd position and 500ml. Shares the 4th position of
the demand total demand with the market demand of 14%
FIGURE 16

Market Demand of Softdrink ( Cola )

500

400
Pepsi
300
Coca-Cola
200
Thums-up
100
S1
0
Pepsi Coca-Cola Thums-up

70
FIGURE 17

Market Demand of Softdrink ( Cola )

Thums-up
24%
Pepsi
39% Pepsi
Coca-Cola
Thums-up

Coca-Cola
37%

 Sample size shows the comparison between the market demands of each of cola drink.
 Pepsi is on the top, shares the demand of 39% from the market.
 Coca-Cola seconds with the shares of the demand of 39% from the market beating
Thumps up with the remaining 24%

FIGURE 18

Market Demand of Softdrink ( Orange )

290
280
270 Fanta, 285
260 Mirinda-O, 260
250 S1
240
Mirinda-O Fanta

71
FIGURE 19
Market Demand of Softdrink ( Orange )

Mirinda-O
48%
Fanta
52%

 Sample size shows the comparison between the market demands of each of Orange
drink.

 Mirinda and Fanta are almost head to head with 48% and 52% market demand.
Though Fanta is having 4% more share than Mirinda Orange.

FIGURE 20

Market Demand of Softdrink ( Lemon )

Sprite 7 Up
9% 5% Mirinda-L
27%

Mountain Dew
28%
Limca
31%

72
FIGURE 21

Market Demand of Softdrink ( Lemon )

1000
800
Limca, 865
600 Mountain Dew,
Mirinda-L, 735
400 770 Sprite, 235
200 7 Up, 123
S1
0
Mirinda-L Limca Mountain Sprite 7 Up
Dew

 Sample size shows the comparison between the market demands of each of Lemon
drinks available in the market

 Limca in the lemon flavour with the market demand share of 31% is beating all the
giants.

 Pepsi‟s two products Mirinda Lemon and Mountain Dew together with the market
demand share of 55% are competing with the Limca.

 The new entrant to the market, Mountain Dew is gaining the market share more
dynamically than its competitor brands.

 Sprite and 7 up are lacking behind with just the share of 14%.

73
FIGURE 22
Market Demand of Softdrink ( Mango )

Slice, 300

300

295 Mazza, 290

290 Series
1
285
Slice Mazza

FIGURE 23
Market Demand of Softdrink ( Mango )

Mazza, 290

Slice, 300

 Sample size shows the comparison between the market demands of each of Mango
drinks available in the market Slice and Mazza is almost head to head with 52% and
48% market demand. Though Slice is having 4% more share than Mazza.

74
SURVEY REPORT CONDUCTED BY INDIVIDUAL
AGENCY:-

FOR THE MONTH MARKS

APRIL 34.5
MAY 22.3
JUNE 30.1

Coca Cola India has been working on RED (Right Execution Daily) since 2006. In Patna
Region RED was introduced in FEB 2006. RED is an integration of Sales Management &
Marketing Execution Plan. By this, company not only has been increasing its Sales & Market
Shares but it also has proved as a media for the company to come closer to its Customers &
Shoppers.

This case of Coca Cola Company is related to the Patna Region where the company is the
leader in the both the Market Shares & the Sales Volume. After RED was introduced in Patna,
the Company continuously tried to improve its RED Score Card.

Its RED Score Card shown in April 2008, in Patna Region (especially Exhibition Road,
Pirmohani, Goriatoli & New Market) was 34.5% (Approx), which was not near to the
Standard i.e. 50, fixed for the month.

The Standard for the month May was fixed 60 by the Sales Management for this Region. But
the result was negative for this month i.e. 22.3%(approx). The RED Score declined by 63%
in this month as it was fixed by sales management.

It put extra pressure on Sales Execution Team to uplift this Score in the month of June. So, it
was the challenge for the Sales Execution Force to regain its prestige but still they didn‟t
achieve the minimum Standard of 60% but somehow manage the score 31.1% which was
increased from the previous month.

75
On the basis of Urge(“ Prefer More Often”)

OPERATING GROUP:-
The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating Groups:
Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling
Investments. Certain prior year amounts have been reclassified to conform to the current year
presentation.

5) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB) Interpretation
No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an approximate $65
million increase in accrued income taxes in their consolidated balance sheet for unrecognized
tax benefits, which was accounted for as a cumulative effect adjustment to the January 1, 2007
balance of reinvested earnings.

6) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)

No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans
-- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."

7) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure
Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation
Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax expense
associated with the repatriation of foreign earnings in 2005 when the previously unremitted
foreign earnings were actually repatriated.

8) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest
Entities," effective April 2, 2004.

76
 DATA COLLECTION AND RELIABILITY OF DATA:-

For this research work there is need of both Primary & Secondary data. Here I have
taken the Primary data which was collected from the Customers.

The secondary data are those, which have already been collected by someone else for other
purpose. The data, which are secondary in the hands of one, may be primary for others. Here
the Secondary data is collected from the company‟s R&D department.

ANALYZING THE DATA:-

The next step in the research process is to extract pertinent findings from the data. The
researcher tabulates the data and uses various financial tools to assess the financial soundness
of the company.

 Research instrument:-
Researcher used questionnaire as his instrument for conducting the survey.
 Sampling Plan
(1) Sampling unit – Retailers
(2) Sampling procedure- Simple Random Sampling Procedure.

 Contact Method
Researcher personally contacted the retailers.

Where f = Feed Back (Help in Controlling the Sub System to Which it is transmitted )
Ff = Feed Forward (serves the vital function of providing criteria for evaluation)

77
MARKETING STRATEGIES:-
1) Coca-Cola sales club:-
This club is for the retailers. In this approach retailers are given some points once in a month
depending upon how they are using the display material provided by the company to them.
This material consists of Fridges, DPS Boards, Glow Sign Boards, Display Bottles (500ml.
1lt. 2lt, Commodity Packs, Stands, Posters etc. Depending upon these points retailers are
rewarded by certain gifts from the company.
The retailers are participating in these schemes curiously. But few of the retailers found
furious and angry because they had lost the points because of miscommunication or lack of
guidance. Therefore they need some kind of guidance from the company. It would be a better
idea that our salesman who are distributing the beverages to the retailers can be equipped by
the appropriate training so that they can guide the retailers about how to use their display
material to 100% of their strength and able to tell about the new schemes convincingly.
2) Schemes:-
Hindustan Beverages India comes out with the schemes on their different products many
times in a year. Most of these schemes are made to benefit the retailers. Some of the schemes
are as follows:

 1 bottle of 2lt. free with one 2lt bottle pack.

 1 bottle of 1lt. free with one 1lt bottle pack.
 2 bottles of 500ml free with one 500ml bottle pack.
 6 bottles of Kinley free with one pack of Kinley.

These schemes keep on changing depending upon the stock. Beverages companies are giving
these schemes despite of acute shortage of soft drink in every segment to meet the
competition, to make sure the availability their brands and sometimes to satisfy and benefit
the retailers and the end consumers.
3) Advertising:-
Through the consumers survey it has been proved that the T.V. commercials and sinages
affect the consumer buying behaviour by approximately 70%. May be only Cococola. is
investing huge finances in the T.V. commercials and other sinages, big names of Indian film
industries and sports hero‟s are being proposed to become the brand promoters and brand
ambassadors. Amir Khan, Akshay Kumar, Hritik Roshan, Riya Sen and more are being
offered huge amount for carrying out the promotions.

78
  Posters
 DPS boards
 Glow Sign boards
 Date calendars
 Cinema hall tickets
 Radio commercial

4) Promotion through restaurants and cinema hall holdings:-

Coca-cola is tying up with different chains of restaurants and fast food centers to
promote the Coca-cola and its other brands like Limca, Sprite, Maaza etc. these restaurants are
authorized to keep and use the merchandising assets of Pepsi. Usually these kinds of
restaurants and fast food chains are in contract with the Pepsi Co., so that they cannot promote
any other brand.

5) Merchandising assets:-
Coca-Cola also try to promote their brands by providing their retailers and dealers some
display items. Some of such items are as follows:
1. Fridges
2. Coca-Cola/Mazza stands
3. Display bottles
4. Posters
Coca-Cola provide the above things to the retailers to use them in promoting companies
brands and products, and provide refrigerators to the retailers in the hope that these retailers
only use these assets in promoting the Coca-Cola‟s products and they will chill the Coca-
Cola‟s products so that its products will always be available to the end consumers. But it is
not true in most of the cases. Retailers usually use the merchandising asset of one company in
such a way that it benefits another company. Sometime they do it unknowingly, sometimes
they do it knowingly and sometimes because of the deficiencies of the company
itself. These deficiencies are as follows: -
1. Irregularity of the salesman to the retailers shop.
2. Shortage of the different products and different packages.
3. Sometimes because of the rude behavior of the salesman.

79
6) Strengthen distribution network and promotions through word of mouth
through sales man:-
Unlike the rival brand Pepsi, Coca-Cola co.. Basically depends upon its sales man for
promoting and launching the new as well as old brands because instead of doing the business
through dealer‟s network like Pepsi, Coca-cola believes in making and maintaining relations
with retailers directly. Therefore salesman is the very important part of Coca-cola co.
marketing strategy.

INTRODUCTION OF REPORT:-
Every year with the start of summers in India the real race to quench the thirst of the
consumers begins in the soft drink beverages industry. Every year millions participate in it,
either in the hot sun or sitting at home watching their, sipping the soft drink and watching the
newly launched advertisements.

Lime n' lemoni Limca:-

Soft drinks manufacturers in India face a number of major problems, such as distribution
difficulties. Access to the 500,000 villages is limited due to the poor road network.
Inconsistent tax policies, the prevalence of duplicates, hefty packaging costs and India's
seasonal nature are other factors holding back growth.
During New Year the two of the largest soft drink giants in India Pepsi and Coca-Cola start
experiments with products, packages, flavors and prices in an effort to boost their market
share. For this the biggies make huge investments in terms of advertising, setting up new and
more productive and modernized plants, improving the distribution network to get better reach
to the end consumer.
One of the areas where these companies are making huge investments is merchandising. This
is the area where companies try to get the maximum display in the consumer‟s eyes at the
retailers shop through refrigerators, glow signboards, DPS boards, stands, posters, display
bottles etc. But the question arises that whether these retailers are making the proper use of
these materials, which the company is providing them. Are they using these materials to their
optimum level in promoting the product of the company that has provided them the
merchandising material? Are the companies getting the optimum results of the investments
they are making in this area?
Researcher have tried to find out answers to the above questions in his research work, which
researcher has conducted during his summer training during the partial fulfillment of his BBA
programme.

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Under the Activation, the attention is given to ensure the following points at the
purchase point: -

 Prices of HCCBPL products communicated in a clear & visible manner.

 DPS/Flex Board/Glow Sign Board, Flange, or Road Standee, at least 1, should be in a
proper condition.
 Ariel Mobile Hanger with at least 4 mobiles displayed at stores front in Convenience
Stores.
 OBM/Drinking Shot Communication present at each store.
 Table Top display unit/Hanging Rack, at least 1 should be pure & should be at least
50% charged in Convenience Stores.
 Self Display Rack in which minimum 8 facings of any PET displayed & visible in
Grocery.
 Rack should be pure & should be at least 50% full in Grocery.
 Combo Communication should be present in E&D.
 Branded Menu Cards with KO (cola) Beverages Menu (at least 5 Menu Cards)/Menu
Board (at least 1) with KO beverages listing

ORGANIZATIONAL STRUCTURE:-

Coca Cola in India

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 SWOT ANALYSIS

STRENGTHS:-

Coca Cola competitive strengths include leading brands with a high level of consumer
acceptance, a worldwide network of bottlers & distributors of company products,
sophisticated marketing capabilities; & a talented group of dedicated associates.

 Coke Company has a good market reputation and a strong distribution network.

 Coke is having a multi brand strategy ad is looking for a great volume opportunity in
India.

 Coke is presently no. 1 player in Indian Carbonated soft drinks market.

 Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains that
pioneering least.

 Pepsi and coke both have good brand image.

WEAKNESS:-

Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal, with the
second & third calendar quarters accounting for highest sales volumes. The volume of sales in
the beverages business may be affected by weather conditions.

 Coke has less no. of retailers

 Less force - it has less no. Have owned bottling plant.

 It has not planned for setting up of any new plants where their competitor has planned
to set up several new plants.

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OPPORTUNITY:-

Over the next several years Soft Drinks Industry‟s growth is expected to out pace the growth
of the world economy. By 2010 is projected to eclipse $650 billion in total revenue. There is
tremendous opportunity to grow our sparkling beverages in both developed & emerging
markets.

 A rapidly growing market, which is expanding @ 205 every year.

 It can take the market very well with the new investment of Rs. 2400 corers.

 It can give a big jerk to its major competitor Pepsi it can increase its number of
fountain to a sizeable amount.

 Increasing trend of cold drink of different brands.

THREATS:-

Coca Cola Company competes in the nonalcoholic beverages segment of the commercial
beverages industry. Based on internally available data & a variety of industry sources, Coca
Cola believe that in 2007, worldwide sales of Company products accounted for approximately
10% of total worldwide sales of nonalcoholic beverages products. The nonalcoholic beverages
segment of the commercial beverages industry is highly competitive, consisting of numerous
firms.

 It has a continuous threat from Pepsi as well as various other local soft drinks.

 Coke has a major market than Pepsi between the teenager as well as the student due to
advertisement of world cup cricket.

 A large amount of expenses on the advertisement.

 There is no proper policy of distributing the merchandising assets of the company to

the retailers.

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LIMITATION:-

Despite the possible efforts in conducting the research, there were some unavoidable

situations, which limited the scope of the project.

 Considering the population, the sample taken for present study seems small and hence

further investigation may be required.

 The sample taken for study was not of equal distribution so a comparative study

cannot be made.

 Some of the retailers were non-cooperative in giving information, which hampered the

actual calculation.

 Time available for research was very short so certain aspects have been overlooked.

 Retailers were hesitant to provide the complete information due to fear of misuse of

information.

 Respondents may sometimes misinterpret the questions, leading to a different answer.

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CHAPTER -8

FINDINGS

85
 FINDINGS

Price factor (price has increased in compression of 2015-16)

Competition with local drink like- Fruit juice,lemon water, sharbat & lassi.tea

Competition with local drink brands like- Jayanti,Lijjet, Premji in small areas.

C/s problems.

Irregular supply in small villages.

Find purity Coca-Cola visicoolers.

I find so many OYC, VISI, D-FREEZE & other company freeze in different areas in

differ region.

Found so many outlets they want visi coolers from Coca-Cola.

Also found dead & useless coolers.

Some retailers complain about the service & repair of coolers.

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 CHAPTER-9
RECOMMENDATIONS & SUGGESTIONS

87
RECOMMENDATION & SUGGESTION

The company should measure Retailers satisfaction regularly.

Company can increase the sales when it considering more on retailers, their

suggestions or complaints about service or product so that necessary action can be

taken.

Review meeting should be often held so that the working pattern of the executives can

be checked and improved if needed.

Company representatives should visit retailers and should make a long-term

relationship with retailer so that they can push the product.

Since customers are value maximizes and their expectation to this brand is high, as the

brand image shows their quality is supervene so the company should also take feed

back at time to time. By this they can make their brand loyal.

Distributers should be convinced to pass the incentives to the retailers so that they are

motivated to promote this brand.

Increase the number of dealers and retailers as this will help in making high sales

volume.

Cash discount should be competitive and luring.

Try to continue the good image of the outlets by keeping more and more good quality

in services. By this the monopoly will continue with Coke products.

Company should attains on small outlets so there sales can increase.

For marketing strategy of company should divers it business in related this sector

Like-Ice creams, butter &chocolates because of company have visicoolers in mostly

outlets.

Now company should launch new taste of soft drinks like recently launched Minute

Maid & also launched new product in another flavor.

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Company should search new area for increasing in sales.

In winter Season Company gives more discount & schemes to retailers so

they sell more our product.

Company must make new strategy to fight local cold drinks brands.

Company should give new dealership on small towns.

Try to decrease the price of commodity in competition of Pepsi.

Company should try to maintain manpower.

89
CHAPTER-10

CONCLUSION

90
 CONCLUSION

I had a project on marketing & sales promotion techniques of Coca-Cola for retailers in rural

area of agra region. The research project work conduct in different areas of rural agra region.

Like: - CHOMU, RINGUS, SAMOD, U.P, PHULERA. HARMADA, SHRIMADHOPUR,

NEEMKATHANA, AJEETGRADH & more. In last I conclude the work study that.

The marketing strategy of Coca-Cola is better than its main competitor.

The sales promotion techniques like- Discount to monopoly retailers & schemes on

products is better than the competitors.

The market share of coke products is higher than the other products.

Thums-Up is the leading brand of coca-cola in different regions.

Sale of product is based on display because we saw this on U.P market.

Company investing more focus now in rural areas. on his retailers,

Advertising campaign of Coca-Cola now can see easily on villages like sign board,

hoardings on highways, banners @ outlets.

I found the proper display of products in racks & in coolers.

Sales of products are increase rapidly U.P. market where I do work study mostly.

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 CHAPTER10.1 LIMITATIONS OF STUDY

LIMITATIONS OF THE RESEARCH WORK

Considering the fact that nothing is prefect in the world. Every individual bound to

make mistake at some points. It‟s genuine.

The study was restricted to Agra Rural region only, so it was difficult to generalize the

interpretations would be make out of the findings.

Limited knowledge of the researcher in the field of research may lead to interpretation

errors.

The result has not been tested.

The respondents may be based or influence by other factor.

Information collection took 60 days.

A busy schedule of dealers/ retailers also makes the collation of information a very

difficult one.

The projection is purely based on verbal meetings and may be influenced by

unprecedented factors.

Non-co-operative behavior of respondent was a big problem in this survey.

White studying the report the above fact should be taken into consideration.

The minor concept & techniques at the marketing management are used significant in

the project concern.

The research was based on primary collection of data through voice interview so there

may be chances of human error and biasness.

The research was dependant on the information provided by the respondents

(retailers). It may insufficient.

As associated with every project, time and money were the major limitations with

project.

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 CHAPTER10.2 SCOPE FOR FURTHER RESEARCH

SIGNIFICANCE OF STUDY

To the Researcher:

It gave a chance to use the conceptual knowledge in actual environment and prepares

the researcher to use the knowledge for better in his future endeavors.

It helped in the assessing the factors, which influenced the retailers purchasing and

selling products to the consumer from Coca-Cola.

The study is essential for the researcher in partial fulfillment of PGDM curriculum.

The study gave the researcher the experiences to conduct survey.

To the Company:

Cold drinks companies are facing a great competition nowadays. Consumers are very much

aware and curious about safely products, services, brands and other upcoming products. This

study provides an insight to the company that what kind of strategies must be adopted in order

to sell more products to consumers and also satisfying them.

To the Others:

The study gave an insight into various aspects of the Beverage companies, discussed

in this study. One can easily come to know about what is happening in Beverage companies in

the current environment. How they make attraction of Retailers & consumer mind.

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 APPENDIX

Name of the SHOP ______________ Tel No.__________________

ADDRESS _____________________________________________

1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU
HAVE?
a. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO
YOU HAVE?
a. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR

DO YOU HAVE?
a. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

4 HOW MANY BOTTLES OF COCA-COLA DO YOU HAVE IN YOUR FRIDGE?

COCA-COLA __________________ TOTAL ________________

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 5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX
TO ITS FULL STRENGTH? A.SHORTAGE [ ]
B. EMPTY PROBLEM [ ]
C . IRREGULARITY OF THE SALESMAN [ ] D. OTHER [ ]

6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?

a. 0.5-2 [ ] B. 3-5 [ ] C. 6-10 [ ] D. MORE THAN 10 [ ]

7 HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?

a. SCHEMES [ ] B GIFT [ ] C SHARING / DRAFT [ ] D OTHER [ ]

8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?

( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML

9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?

a. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP
1
b. ( ) MIRINDA-O( ) FANTA

c. ( ) MIRINDA –L ( ) LIMCA ( ) MOUNTAIN-DEW ( ) SPRITE

( ) 7-UP

d. ( ) SLICE ( ) MAAZA

Thanks

If you Have Any Suggestion…………………………( )

Signature

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 BIBLIOGRAPHY

Author‟s Name Book Name Place of Publication Year

Kothari, C.R. Research Methodology- Wiley Eastern Ltd., New

Methods and Delhi

Techniques

Web sites.

www.cocacola.com

www.coke.com

www.cocacolaindia.com

Magazines

India today.

Business world.

Business india.

Material profile of company.

Surey.

Search engines.

www.google.com
www.search.com

www.yahoo.com

www.alvista.com

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