POTENTIAL GROWTH AREAS FOR COCO COLA: A

CASE STUDY

Ridhwan*, Nithesh*, Sagar Srinivas**

*1st year, Evening MBA, Commerce of Mangament and Commerce, Srinivas University,
Mangalore

** Department of MBA, Commerce of Mangament and Commerce, Srinivas University,

Mangalore

Abstract:

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly
400 beverage brands. The Coca- Cola Company began building its global network in the
1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-
Cola system has successfully applied a simple formula on a global scale: “Provide a moment
of refreshment for a small amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the
Company. This unique worldwide system has made The Coca-Cola Company the world’s
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, has brought pleasure to thirsty consumers around the
globe. This paper deals with the Potential growth areas for Coco Cola and its position in
FMCG market.
Keywords: Costumer, brands, service,growth, Satisfaction
 1. Introduction:
The Coca-Cola Company, American corporation founded in 1892 and today engaged
primarily in the manufacture and sale of syrup and concentrate for Coca-Cola, a sweetened
carbonated beverage that is a cultural institution in the United States and a global symbol of
American tastes. The company also produces and sells other soft drinks and citrus beverages.
With more than 2,800 products available in more than 200 countries, Coca-Cola is the largest
beverage manufacturer and distributor in the world and one of the largest corporations in the
United States. Headquarters are in Atlanta, Georgia.
In 1899 the Coca-Cola Company signed its first agreement with an independent bottling
company, which was allowed to buy the syrup and produce, bottle, and distribute the Coca-
Cola drink. Such licensing agreements formed the basis of a unique distribution system that
now characterizes most of the American soft-drink industry. Coca-Cola Company was sold
in 1919 for $25 million to a group of investors led by Atlanta businessman Ernest Woodruff.
In 1946 the company purchased rights to Fanta, a soft drink previously developed in
Germany.

2. Related Work
SL. No. Area Author Refernce
1 A STUDY ON CONSUMER Siddharth [11]
PREFERENCES FOR COCA COLA
2 A CASE STUDY ON COCA COLA Sanjay Gupta [12]
MARKET
3 MARKETING STRATEGIES Tarique J [13]
ANALYSIS - A CASE STUDY
4 STUDY COMPARATIVE OF SERVICE Javed M [14]
PROVIDED BY PEPSICO & COCA-
COLA AT NEERAJ ENTERPRISES IN
SOLAPUR
 3. Objectives:

 To study the current position of Coca Cola company.

 To study SWOT analysis of the company .
 To study the PESTLE analysis of the company.
 To study Financial performance of the company
 To study potential areas for growth

4. Methodology:
The study is based on the secondary sources of information. The research design is basically
comparative research in nature. For gathering data, various newspaper cuttings, Books,
Journals & Conference Proceedings, Websites of the company and Industry, Research
network websites, Focus group discussions, forums etc., have been considered. For the
analysis about Coco Cola, its annual report 2018 has been considered. Most of the facts are
compiled information.

5. Company as an Organization:
The Directors have presented the Annual Report on the business and operations of the
Company together with the Audited Financial Statements for the year ended December 31,
2018.
5.1. Financial Results

A summary of the Company’s Financial Results for the Financial Year 2018 is as under:

5.2 Company’s Strength

Coca-Cola has strong brand recognition across the globe. The company has a leading
brand value and a strong brand portfolio. Business-Week and Inter-brand, a branding
consultancy, recognize. Coca-Cola as one of the leading brands in their top 100 global
brands ranking. . Coca-Cola owns a large portfolio of product brands. The company owns
four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and
Fanta. Strong brands allow the company to introduce brand extensions such as Vanilla
Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large
investments in brand promotions. Consequently, Coca-cola is one of the best recognized
global brands. The company’s strong brand value facilitates customer recall and allows
Coca-Cola to penetrate new markets and consolidate existing ones.

STRONG DISTRIBUTION NETWORK

The Company has a strong and reliable distribution network. The network is formed on
the basis of the time of consumption and the amount of sale yielded by a particular
customer in one transaction. It has a distribution network consisting of a number of
efficient salesmen, 700,000 retail units and 8000 distributors. The distribution fleet
includes different modes of distribution, from 10 tonne to open bay three wheelers that
can navigate the narrow alleyways of Indian cities – constantly keep Coca-Cola brands
available in every nook and corner of the Country’s remotest areas.

BRAND IMAGE
Coke has its history of about more than a century and this prolonged sustenance has
definitely added to the brand image in the minds of the consumers and to its wallet. The
products produced and marketed by Coca-Cola India have a strong brand image.

Low Cost of Processing

In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost-
focus culture in the company. This included procurement Efficiencies – through focus on
key input materials, trade discipline and control and proactive tax management through
tax incentives, excise duty reduction and creating marketing companies. These measures
have reduced the costs of operations and increased profit margins.
5.3 Company’s Weakness
The Coca-Cola Company has been involved in a number of controversies and lawsuits related
to its relationship with human rights violations and other perceived unethical practices. There
have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle
East and U.S. foreign policy. The company’s cash flow from operating activities declined
over the years.

HEALTH CARE ISSUES

In India, there exists a major controversy concerning pesticides and other harmful chemicals
in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment
(CSE), a non- governmental organization in New Delhi, said aerated waters produced by soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola
contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that can
contribute to cancer and a breakdown of the immune system.

5.4 Company’s Opportunity.

Diversification in the health and food business will improve the offerings of Coca cola to
their customers. This will also ensure that they get better revenue from existing customers by
cross selling their products. The supply chain which is distributing their beverages can also
distribute these snacks thereby sharing the load of Supply chain costs. In the product portfolio
of Coca cola, there are several products which have not found acceptance in the market. Coca
Cola needs to concentrate on the marketing of these products as well. It is understood that
Coca cola has made several expenses to launch these products. Thus, the marketing and
subsequent rise of sale of these products will help revenue of Coca cola

LARGE DOMESTIC MARKETS

The domestic market for the products of the Company is very high as compared to any other
soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market;
this includes a 42 per cent share of the cola market. Other products account for 16 per cent
market share, chiefly led by Limca.

EXPORT

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

HIGHER INCOME AMONG PEOPLE

Development of India as a whole has lead to an increase in the per capita income thereby
causing an increase in disposable income. Unlike olden times, people now have the power of
buying goods of their choice without having to worry much about the flow of their income.
Coca-Cola Company can take advantage of such a situation and enhance their sales.

5.5 Company’s Threat

Raw material sourcing or Water is the major threat faced by Coca cola. The weakness of
Coca cola was the suspected use of pesticides or vast consumption of water. However, the
threat here is that water scarcity is on the rise. With the climate changing, and regions of
various countries facing scarcity of water, sooner or later someone might raise fingers on
beverage companies. Thus, Water sourcing is an axe which can fall anytime on the head of
Coca cola. If water is limited or rationed, Coca cola can experience a major downfall in their
revenue and capacity of distribution.
 6. MARKETING MIX OF COCA-COLA INDIA

6.1 PRODUCT:-

Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where
Coca-Cola identified major opportunities. In this market Coke’s Kinley was pitched against
Ramesh Chauhan’s Bisleri and Pepsi’s Aquafina. The product not only faced intense
competition but also was difficult to differentiate. Coke positioned Kinley as natural water
with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water).

In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers
were brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola to
CCI’s product line. This meant CCI had three orange, clear lime and cola drinks each in its
portfolio.

6.2 PRICE:-

Coke learnt with experience that price was a strategic weapon in an emerging market like
India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond
the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in
coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30%
demonstrating the importance of consumer affordability. The advertising Campaign
highlighted the affordability and Indian image.
6.3 PLACE:-

Coke pushed down responsibilities from corporate headquarters to the local business units.
The aim was to effectively align CCI's corporate resources, support systems and culture to
leverage the local capabilities. CCI's operations had been divided into North, Central and
Southern regions. Each region had a president at the top, with divisions comprising
marketing, finance, human resources and bottling operations. The heads of the divisions
reported to the CEO. Bottling operations were divided into four companies directed by the
bottling head from headquarters. Under the new plan, CCI shifted to a six region profit center
set up where product customization and packaging, marketing and brand building were taken
up locally. A Regional General Manager (RGM) headed each region with the regional
functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn
reported to CEO. The four bottling operations, with 37 bottling plants, were merged into
Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average six
bottling plants. Each plant was headed by an Area General Manager (AGM) and held profit
center responsibility for a business territory. He reported to the RGM as well as the head of
bottling at the head quarters.

6.4 PROMOTION:-

In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums
Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible.
The overall marketing effort was also not focused as CCI changed the head of marketing
three times during the period. Thumps Up remained neglected. Inadequate marketing support
for other Parle brands also led to their declining market shares.
The bottlers taken over by Coke also had problems adjusting to a new work culture. They
argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and
asked CCI to take corrective action.

Since India was a large country of different tastes and cultures, CCI customized its marketing
strategy for different regions. It promoted the Coke brand in Delhi, Thumps Up in Mumbai
and Andhra Pradesh, and Fanta in Tamil Nadu.

7 .A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)
are products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products.

By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian customer
witnessed an increasing exposure to new domestic and foreign products through different
media, such as television and the Internet. Apart from this, social changes such as increase in
the number of nuclear families and the growing number of working couples resulting in
increased spending power also contributed to the increase in the Indian consumers' personal
consumption. The realization of the customer's growing awareness and the need to meet
changing requirements and preferences on account of changing lifestyles required the FMCG

producing companies to formulate customer-centric strategies. These changes had a positive

impact, leading to the rapid growth in the FMCG industry. Increased availability of retail
space, rapid urbanization, and qualified manpower also boosted the growth of the organized
retailing sector.
8. POTER’S FIVE FORCES

8.1 RIVALRY AMONG EXISTING FIRMS:

The greatest competition that Coca-cola faces is from the rival sellers within the industry.
Coca-Cola, Pepsi Co is the largest competitor in this industry, and they are all globally
established which creates a great amount of competition. Aside from them,smaller companies
make up the remaining market share.
However, Coca-Cola has higher sales in the global market than PepsiCo, PepsiCo is the main
competitor for Coca-Cola and these two brands have been in a power struggle for years

.
"The Coca-Cola Company" is the largest soft drink company in the world. Every year
800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plants
with some exceptions are locally owned and operated by independent business people who
are native to the nations in which they are located. Coca-Cola manufactures, distributes and
markets non-alcoholic beverage concentrates and syrups, including fountain syrups.

It supplies concentrates and beverage bases used to make the products and provides
management assistance to help it's bottler's ensure the profitable growth of their business.
This has put Pepsi at a significant disadvantage compared to US market. Overall, Coca-Cola
continues to outsell Pepsi in almost all areas of the world. However, exceptions include India,
Saudi Arabia and Pakistan.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after
a new government ordered, The Coca-Cola Company to turn over its secret formula for Coke
and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act
(FERA).

In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands
was allowed. PepsiCo bought out its partners and ended the joint venture in 1994. In 1993,
The Coca-Cola Company returned in pursuance of India's Liberalization policy. In 2005, The
Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in
India. Coca-Cola India's market share was 52.5%.

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

Pepsi is however trying to counter this by competing more aggressively in the emerging
economies where the dominance of Coke is not as pronounced, with the growth in emerging
markets significantly expected to exceed the developed markets, rivalry in international
market is going to be more pronounced.

Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting
Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing
people doing blind taste tests called Pepsi Challenge in which they preferred one product over
the other. Pepsi started hiring more popular spokespersons to promote their products.

Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005
& Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi
Stuff ending its services and Coke Rewards still offering prizes on their website. Both were
loyalty programs that give away prizes and product to consumers after collecting bottle caps
and 12 or 24 pack box tops, then submitting codes online for a certain number of points.

8.2 POTENTIAL ENTRANTS:

New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and
Pepsi Co dominate the industry with their strong brand name and great distribution channels.
In addition, the soft-drink industry is fully saturated and growth is small. This makes it very
difficult for new, unknown entrants to start competing against the existing firms.

Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and
economies of scale. New entrants cannot compete in price without economies of scale. These
high capital requirements and market saturation make it extremely difficult for companies to
enter the soft drink industry therefore new entrants are not a strong competitive force.
 Capital requirements for producing, promoting, and establishing a new soft drink
traditionally have been viewed as extremely high. According to industry experts, this makes
the likelihood of potential entry by new players quite low, except perhaps in much localized
situations that matter little to Coke or Pepsi. Yet, while this view may reflect conventional
wisdom, some industry observers question whether a new time is coming, with 'new age'
beverages selling to well-informed and health-informed and health-conscious consumers.

8.3 SUBSTITUTES:

Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit
juices are the more popular substitutes. Availability of shelf space in retail stores as well as
advertising and promotion traditionally has had a significant effect on beverage purchasing
behaviour. For years the story in the non-alcoholic sector centred on the power struggle
between Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun
relying on new product flavours and looking to noncarbonated beverages for growth.

Substitute products are those competitors that are not in the soft drink industry. Such
substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices etc.
Bottled water and sports drinks are increasingly popular with the trend to be a more health
conscious consumer. There are progressively more varieties in the water and sports drinks
that appeal to different consumer's tastes, but also appear healthier than soft drinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine. The
consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the
caffeine and lose the sugar and carbonation.

Profitability in the soft drink industry will remain rather solid, but market saturation has
caused analysts to suspect a slight deceleration of growth in the industry. Because of this, soft
drink leaders are establishing themselves in alternative markets such as the snack,
confections, bottled water, and sports drinks industries.
In order for soft drink companies to continue to grow and increase profits they will need to
diversify their product offerings. So in order to compete with the substitutes industry, coca-
cola has diversified from just carbonated drink industry to other substitute and so have other
brands like Pepsi, Dr pepper/Snapple.

8.4 BARGANING POWER OF BUYERS:

Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's real
buyers have been local bottlers who are franchised -or are owned, especially in the case of
Coke- to bottle the companies' products and to whom each company sells its patented syrups
or concentrates. While Coke and Pepsi issue their franchise, these bottlers are in effect the
conduit through which these international cola brands get to local consumers

Also, the three most important channels for soft drinks are supermarkets, fountain sales, and
vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink industry
sales, fountain sales represented about 25%, and vending accounted for approximately 13%.
Other retailers represent the remaining percentage.

While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of
bottling companies, Coca-Cola uses its own network of wholesalers for their fountain syrup
distribution, and Pepsi distributes its fountain syrup through its bottlers.

8.5 BARGANING POWER SUPPLIERS:

The principal raw material used by the soft-drink industry in the United States is high
fructose corn syrup, a form of sugar, which is available from numerous domestic sources.
The principal raw material used by the soft-drink industry outside the United States is
sucrose. It likewise is available from numerous sources.

Another raw material increasingly used by the soft-drink industry is aspartame, a sweetening
agent used in low-calorie soft-drink products. Coke managers have long held 'power' over
sugar suppliers. They view the recently expired aspartame patents as only enhancing their
power relative to suppliers.
9. PESTEL ANALYSIS OF COCA- COLA

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It
is a tool that helps the organisations for making strategies and to know the EXTERNAL
environment in which the organisation is working and is going to work in the future.

Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic

drinks also need to undergo this PESTLE analysis to know about the external environment in
order to keep pace with the fast growing economy.

9.1 Political Analysis:

Political factors are how far a government intervenes in the operations of the company. The
political factors may include tax policy, trade restrictions, environmental policy, laws
imposed on the recruiting labours, amount of permitted goods by the government and the
service provided by the government.

Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and
Drug Administration), it is an agency in the United States Department of Health and Human
Services. The job of the FDA is to check and certify whether the ingredients used in the
manufacturing of Coca-Cola products in the particular country is meeting to the standards or
not. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before
introducing any ingredients in its products and get prior approval from the FDA. The
company also has to take into consideration of the regulation imposed by FDA on plastic
bottled products.

Apart from FDA the other political factors includes tax policies and accounting standards.
The accounting standards used by the company changes from time to time which have a
significant role in the reported results. The company also is subjected to income tax policies
according to the jurisdiction of various countries. In addition to this, the company is also
subjected to import and excise duties for distribution of the products in the countries where it
does not have the outsourcing units.Moreover, if there is any unrest or changes in the
government and any kind of protest by the political activists may decline the demand for the
products.
9.2 Economic Factors:

The economic factors analyze the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates,
wage rates and unemployment in the country.

The company first analyzes the economic condition of the country before venturing into that
country. When there is an economic growth in the country, the purchasing power among
people increases. It gives the company or the marketer a good chance to market the product.
Coca-Cola, in the past identified this correctly and rightly started its distribution across
various countries. A strong and weak currency tends to affect the exporting of the products
globally.

Interest rates are the rate which is imposed on the company for the money they have
borrowed from government. When there is an increase in the interest rates, it may deter the
company in further investment as the cost for borrowing is higher. Coca-Cola uses derivative
financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate go
hand in hand, when there is an increase in the inflation the employee demand for a higher
wage rate to cope up with the cost of living.

This comes as additional cost for the company which cannot be reflected in the price of the
final product as the competition and risk in this segment is higher. This is a threat in the
external environment faced by the company.

9.3 Social Factors:

Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing society. The company
adapts various management strategies to adapt to these social trends.

Coca-Cola is directly related to the customer, so social changes are the most important factors
to consider. Each and every country has a unique culture and attitude among the people. It is
very important to know about the culture before marketing in a particular country. Coca-Cola
has about 3300+ products in their stable, when entering into a country it does not introduce
all the products. It introduces minimum number of products according to the culture of the
country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public health
consequences, mainly obesity which is the second social factor in the soft drinks industry. It
inspired the company to venture into the areas of Diet coke and zero calorie soft drinks. The
problem of obesity is taken seriously among the youngsters who like to maintain a good
physique. Hence coke introduced dietary products for those youngsters who can enjoy coke
with zero calories.

Population growth rate and the age distribution is another social factor to be considered. It is
very important because non-alcoholic markets have most of its share from the children and
youngsters.

9.4 Technological Factors:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution
of the products is relatively a Low-Tech business, although the creation of a new product
with the perfect blend and taste is a science (an art in itself).

Technological contributions are most important in packaging. The company rely on their
bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit
case volume is manufactured and distributed by their bottling partners in whom the company

does not have controlling power. Hence it is necessary for the company to maintain a cordial
relation with their bottling partners. If the company do not give ample support in pricing,
marketing and advertising then the bottling industry while increase their short term profits,
may become detrimental to the company.

The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines all over the world. In
products it led to the development of new products like Cherry Coke, Diet Coke etc.

9.5 Legal Factors

The legal factors include discrimination law, customer law, antitrust law, employment law
and health and safety law. In Coca-Cola the business is subjected to various laws and
regulation in the numerous countries in which they do the business, the laws include
competition, product safety, advertising and labelling, container deposits, environment
protection, labour practices.

Various jurisdictions may adopt significant regulations in the additional product labelling and
warning of certain chemical content or perceived health consequences. These requirements if
become applicable in the future the company must be ready to accept and have necessary
changes in hand for the same.

9.6 Environment Factors

These factors include the environment such as the weather conditions and the seasons in
which people prefer to buy cool beverages. Also the company must follow the environmental
issues related to the product manufacturing, packaging and distributing in various countries.
It must adhere to the norms and market the product accordingly. Usage of renewable plastic
in the PET bottles is followed by the company strictly.
10. SUGGESTIONS

1 Perform a detail demand survey at regular interval to know about the unique needs
and requirements of the customer.

2 The company should make free arrangement for its customers/retailers to make any
feedback or suggestions as and when they feel.

3 The company should focus to bring some more flavors like health drinks and other
low-calorie offerings. Coca-Cola India can also introduce more fruit based drinks.

4 The company must keep a watch on its primary competitors in market in order to be
able to compete with them.

5 The company should use new attractive system of word of mouth advertisement to
keep alive the general awareness in the whole market as a whole.

6 The company should be always in a position to receive continuous feedback and

suggestions from its customers/ consumers as well as from the market and try to
solve it without any delay to establish its own good credibility.

7 A strong watch should be kept on distributors so that the goodwill of the BRAND
doesn’t get affected.
 11. CONCLUSION

Though there were certain limitations in the study that was conducted. The sample allowed
for some conclusions to be drawn on the basis of analysis that was done on the data collected.

The data has clearly indicated that Coca-Cola products are more popular than the products
of Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and
AVAILABILITY, thus it should focus on good taste so that it can capture the major part of
the market. The study also indicated that the consumers are satisfied with the Coca-Cola
products and purchase them without any specific occasions. Coca Cola should work on
their weaknesses and ensure to avail all the opportunities they have. In today’s
scenario, customer is the king because he has got various choices around him. If you are not
capable of providing him the desired result he will definitely switch over to the other
provider. Therefore to survive in this cutthroat competition, you need to be the best.
Customer is no more loyal in today’s scenario, so he should be provided with more healthy
and tastier products based on changing needs and habits of the consumers.
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