CONTENTS

CHAPTER-1 INTRODUCTION
CHAPTER- 2 INDUSTRY
PROFILE
COMPANY
PROFILE

CHAPTER-3 RESEARCH
METHODOLOGY

CHAPTER-4 ANALYSIS AND

INTERPRETATION
CHAPTER- 5 FINDINGS,
SUGGESTIONS
AND
CONCLUSIONS
CHAPTER-6 BIBILOGRAPHY

CHAPTER-7 APPENDIX
 CHAPTER - 1

INTRODUCTION
 INTRODUCTIION
Let reason go before every enterprise,
And counsel before every action

Research is a human activity based on intellectual investigation and is aimed at discovering,

interpreting, and revising human knowledge on different aspects of the world.

MARKETING RESEARCH

Marketing research is the function that links the consumer, customer and public to the
marketer through information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing performance;
and improve understanding of marketing as a process. Marketing research specifies the
information required to address these issues, designs the methods for collecting information,
manages and implements the data collection process, analyses and communicates the findings
and their implications.

-American Marketing Association

Marketing research is about researching the whole company’s marketing process.

-Palmer (2000)

Market research (also in some contexts known as industrial research) is any organized
effort to gather infomarketing research is concerned specifically about marketing processes,
while market research is concerned specifically with markets.
Market research is one of the key factors used in maintaining competitiveness over
competitors. Market research provides important information to identify and analyze the
market need, market size and competition. Market-research techniques encompass both
qualitative techniques such as focus groups, in-depth interviews, and ethnography, as well as
quantitative techniques such as customer surveys, and analysis of secondary data.

Market research, which includes social and opinion research, is the systematic gathering and
interpretation of information about individuals or organizations using statistical and analytical
methods and techniques of the applied social sciences to gain insight or support decision
making.

Market research started to be conceptualized and put into formal practice during the 1920s, as
an offshoot of the advertising boom of the Golden Age of radio in the United States.
Advertisers began to realize the significance of demographics revealed by sponsorship of
different radio programs.

Market research is a way of getting an overview of consumers' wants, needs and beliefs. It
can also involve discovering how they act. The research can be used to determine how a
product could be marketed. Peter Drucker believed[4] market research to be the quintessence
of marketing. Market research is a way that producers and the marketplace study the
consumer and gather information about the consumers needs. There are two major types of
market research. Primary Research sub-divided into Quantitative and Qualitative research
and Secondary research.

Factors that can be investigated through market research include:

Market information

Through market information one can know the prices of different commodities in the market,
as well as the supply and demand situation. Market researchers have a wider role than
previously recognized by helping their clients to understand social, technical, and even legal
aspects of markets.

Market segmentation

Market segmentation is the division of the market or population into subgroups with similar
motivations. It is widely used for segmenting on geographic differences, demographic
differences (age, gender, ethnicity, etc.), technographic differences, psychographic
differences, and differences in product use. For B2B segmentation firm graphics is commonly
used.
Market trends

Market trends are the upward or downward movement of a market, during a period of time.
Determining the market size may be more difficult if one is starting with a new innovation. In
this case, you will have to derive the figures from the number of potential customers, or
customer segments.

SWOT analysis

SWOT is a written analysis of the Strengths, Weaknesses, Opportunities and Threats to a

business entity. A SWOT may also be written up for the competition to understand how to
develop the marketing and product mixes.

Another factor that can be measured is marketing effectiveness. This includes:

 Customer analysis (Segmentation of target customers)

 Choice modelling
 Competitor analysis
 Risk analysis
 Product research
 Advertisement research
 Marketing mix modelling
 Simulated Test Marketing

Market research for the film industry

It is important to test marketing material for films to see how an audience will receive it.
There are several market research practices that may be used:

1. concept testing, which evaluates reactions to a film idea and is fairly rare;
2. positioning studios, which analyse a script for marketing opportunities;
3. focus groups, which probe viewers' opinions about a film in small groups prior to
release;
4. test screenings, which involve the previewing of films prior to theatrical release;
5. tracking studies, which gauge (often by telephone polling) an audience's awareness of
a film on a weekly basis prior to and during theatrical release;
6. advertising testing, which measures responses to marketing materials such as trailers
and television advertisements;
7. exit surveys, that measure audience reactions after seeing the film in the cinema.
Influence from the Internet

The availability of research by way of the Internet has influenced a vast number of consumers
using this media; for gaining knowledge relating to virtually every type of available product
and service. It has been added to by the growth factor of emerging global markets, such as
China, Indonesia and Russia, which is significantly exceeding that of the established and
more advanced B2B e-commerce markets. Various statistics show that the increasing
demands of consumers are reflected not only in the wide and varied range of general Internet
researching applications, but in online shopping research penetration.

This is stimulated by product-enhancing websites, graphics, and content designed to attract

casual "surfing" shoppers, researching for their particular needs, competitive prices and
quality. According to the Small Business Administration (SBA), a successful business is
significantly contributed to by gaining knowledge about customers, competitors, and the
associated industry. Market research creates not only this understanding, but is the process of
data analysis regarding which products and services are in demand.

The convenience and easy accessibility of the Internet has created a global B2C E-commerce
research facility, for a vast online shopping network that has motivated retail markets in
developed countries. In 2010, between $400 billion and $600 billion in revenue was
generated by this medium also, it is anticipated that in 2015, this online market will generate
revenue between $700 billion and $950 billion.

Beyond online web-based market research activities, the Internet has also influenced high-
street modes of data collection by, for example, replacing the traditional paper clipboard with
online survey providers. Over the last 5 years, mobile surveys have become increasingly
popular. Mobile has opened the door to innovative new methods of engaging respondents,
such as social voting communities.

Research and social media applications

The UK Market Research Society (MRS) reports research has shown that on average, the
three social media platforms primarily used by Millennials are LinkedIn, Facebook and
YouTube. Social Media applications, according to T-Systems, help generate the B2B E-
commerce market and develop electronic business process efficiency. This application is a
highly effective vehicle for market research, which combined with E-commerce, is now
regarded as a separate, extremely profitable field of global business. While many B2B
business models are being updated, the various advantages and benefits offered by Social
Media platforms are being integrated within them.

Business intelligence organization have compiled a comprehensive report related to global online
retail sales, defining continued growth patterns and trends in the industry. Headed "Global B2C E-
Commerce and Online Payment Market 2014" the report perceives a decrease in overall growth
rates in North America and Western Europe,
asthe expected growth in the online market sales, is absorbed into the emerging markets. It is
forecast that the Asia-Pacific region will see the fastest growth in the B2C E-Commerce
market and replace North America as the B2C E-Commerce sales region leader, within a few
years. This effectively, offers a significant, motivational platform for new Internet services, to
promote user market research-friendly applications.

Research and market sectors

The primary online sale providers in B2C E-Commerce, worldwide, includes the USA based
Amazon.com Inc. which remains the E-Commerce revenues, global leader. The growth
leaders in the world top ten are two online companies from China, both of which conducted
Initial Public Offering (IPO) this year; Alibaba Group Holding Ltd. and JD Inc. Another
company from the top ten is Cnova N.V., a recently formed E-Commerce subsidiary of the
French Group Casino, with various store retailers developing and expanding their E-
Commerce facilities worldwide. It is a further indication of how consumers are increasingly
being attracted to the opportunities of online researching and expanding their awareness of
what is available to them.

Service providers; for example those related to finance, foreign market trade and investment
promote a variety of information and research opportunities to online users. In addition, they
provide comprehensive and competitive strategies with market research tools, designed to
promote worldwide business opportunities for entrepreneurs and established providers.
General access, to accurate and supported market research facilities, is a critical aspect of
business development and success today. The Marketing Research Association was founded
in 1957 and is recognized as one of the leading and prominent associations in the opinion and
marketing research profession. It serves the purpose of providing insights and intelligence
that helps businesses make decisions regarding the provision of products and services to
consumers and industries.

This organization knowledge of market conditions and competition is gained by researching

relevant sectors, which provide advantages for entry into new and established industries. It
enables effective strategies to be implemented; the assessment of global environments in the
service sectors, as well as foreign market trade and investment barriers! Research, is utilized
for promoting export opportunities and inward investment, helping determine how to execute
competitive strategies, focus on objective policies and strengthen global opportunities. It is a
medium that influences, administrates and enforces agreements, preferences, leveling trading
environments and competitiveness in the international marketplace.

The retail industry aspect of online market research, is being transformed worldwide by M-
Commerce with its mobile audience, rapidly increasing as the volume and varieties of
products purchased on the mobile medium, increases. Researches conducted in the markets of
North America and Europe, revealed that the M-Commerce penetration on the total online
retail trade, had attained 10%, or more. It was also shown that in emerging markets, smart-
phone and tablet penetration is fast increasing and contributing significantly to online
shopping growth.
Market research consists of systematically gathering data about people or companies – a
market – and then analyzing it to better understand what that group of people needs. The
results of market research, which are usually summarized in a report, are then used to help
business owners make more informed decisions about the company’s strategies, operations,
and potential customer base.

Understanding industry shifts, changing consumer needs and preferences, and legislative
trends, among other things, can shape where a business chooses to focus its efforts and
resources. That’s the value of market research.

Meaning, if your research told you that scientists had recently created a new kind of fabric
that helped the wearer lose weight just by putting it on, for example, your retail clothing store
might want to adjust its buying plan to test designs using this new fabric. Or if you uncovered
that shoppers in your area rely heavily on coupons in making a purchase decision, you might
decide to test sending your mailing list a promotional coupon.

Market research can help businesses run more efficiently and market more effectively.

Types of Market Research

While there are a number of market research tools you can use, there are really only two
types of market research data:

 Primary. Primary data is first-hand information you gather yourself, or with the
help of a market research firm. You control it.
 Secondary. Secondary data is pre-existing public information, such as the data
shared in magazines and newspapers, government or industry reports. You can
analyze the data in new ways, but the information is available to a large number of
people.

Using primary or secondary data, there are two types of research studies:

 Exploratory. Exploratory market research gathers lots of open-ended data from

many people to better understand a problem or opportunity. The goal is to gather
perceptions and opinions regarding an issue, so your company can decide how to
address it. But first you have to understand how your market sees the issue.
 Specific. Once you understand the larger market issues, or opportunities, you can
use specific questions to gather information that could lead to a new product or
service. Market research firms often use specific questions to gather feedback on a
new advertising campaign, or to refine a planned new product.
 INTRODUCTIION TO
CONSUMER PREFERENCE

Marketing is not a process of selling goods to customers. It is an art of marking them

Buy our goods again and again

Marketing is social and management process by which individuals and

groups obtain what they want and need through creating, offering, exchange and transaction
products of value with them
.
Marketing Management is a process of planning and executing the
conception, pricing, promotion, and distribution of goods and services to create exchange that
satisfy individuals and organisation goals

Thus, marketing starts with identifying the target customers and ends with satisfied
customers. Management of all the activities between these customers is the responsibility of
the marketing managers.

CONSUMER MARKETS:

Individuals and households for their personal consumption can be defined as a consumer
market

Beverage industry is generally considered to typical consumer goods,

Beverage industry is one of the most profitable industry in the market. Beverage
Industries at present are facing boom period in india
Beverage industry is generally classified into:
1. Alcoholic drinks

2 .Non alcoholic drinks

Non alcoholic beverages again divided into:

1. carbonated Soft Drinks (C.S.D)

2. Fruit juice

The soft drinks again divided into:

1. cola based

2. Non cola based

The Non cola based segment has orange, clear lemon, cloudy lemon and

soda. Fruit juice include watermelon, mango, apple and pineapple . The cola segment,

which consider to be giving some type of fuzziness and satisfaction , is fast growing in

India . This is the reason why soft drinks marketers are fighting tooth and nail to

establish their leadership in market

 CONSUMER PREFERENCE
The marketing concept is built on the promise that markets first identify consumer

needs and then develop products and service to satisfy those needs . consumer

researcher offers asset of diverse methods to identify such needs. Consumer research is

Also used to better understand consumption behaviour. It is used to identify and locate

Appropriate target markets and to learn their media habits .It is used to identify both felt

and unfelt needs to learn how consumer preference products and brand and stores ,what

their attitude before and after promotional components and how and why make their

consumer decisions. Many of these applications of consumer research are managerial in

perspective. They are designed to help a market make specific marketing decisions

concerning products , price promotion and distribution

Consumer research provides basis for the development of new

product and service concepts to meet targeted consumer needs . It also enables marketer

to build consumer meaning into the product or service by discovering which attributes

are most Important to the target market and integrating them into the product or service

design

HOW TO THE CONSUMER HELPS MANUFACTRER:

The consumption helps the manufacturer by formulating the policy

of manufacturers according to the demand and assists then in securing the markets of

their goods. The consumer also reveals the manufacturers from the necessity of having

sales organization of their own.

The manufacturers are not put to that task of collection and security

orders and the numbers of accounts they have to open are smaller than when dealing

with the consumer.

The consumers are in a position to advice the manufacturers as to the changes or

Alternation or alternatives , which should be introduced in their products .

While manufacturing soft drinks the company should maintain both quality

and quantity occupies a very important stabilized position. The company can assess the

public demand and see that marketable goods are manufactured thus protecting the

manufacturer from wasteful and indiscriminate production as well as the consumer

against goods which are neither satisfactory nor good value.

CONSUMER RELATIONS:
The consumer decisions making with a brief consideration of relation

marketing firm have established relationship marketing programs to faster usage

loyalty and a commitment to their company’s products and services . In this way

relationship marketing is aimed at creating strong relationships with a core group of

consumers. The emphasis is on developing long term bonds with them and by giving

them some kind of personal connections to the business.

Ultimately it is an advantage to develop long term relationship with

existing consumers because it is easier and less expensive to make an additional sale to

an existing consumer then to make an additional sale to an existing consumer than to

make a new sale to a new consumer.

However the effort involved for the firm is developing and

maintaining a consumer’s relationship must be weighted against the expected long term

benefits. Markets much determine the life time value of a consumers to ensure that the

cost of obtaining servicing and communicating with the consumers do not exceed the

potential profits
CONSUMER PREFERENCE:

Preference is a function of the difference between perceived performance and

expectations. Companies seeking to win in today’s markets must track their consumers

expectations perceived company’s performance and consumer preference.

While assisting the satisfaction level a company must not conclude that it can

get a full picture of consumer satisfaction and dissatisfaction by simply running a

complaint and suggestion system.

Some times consumers may feel that their complain are minor or that

they will be made to feel bad or that no remedy will be offered . the result is that the

company has needlessly lost consumers

Therefore the company instead of using complains level as a measure

of consumer’s preference obtaining a direct measure of consumer satisfaction by

conducting periodic surveys would provide more appropriate measure . thus

questionnaire can be made to random sample of their recent consumers to find out how

they feel about various aspects of the companies performance . they can also solicit

buyers views on the competitors performance

So the respondents can be asked a list of problems they hear, had

with the offer and list out improvements needed. Companies could also ask to the

respondents to rate various elements of the offers in terms of the importance of each

element and how will the company performance each element. So the researcher has

taken up a comprehensive study on the consumer preference of coco cola products

 CHAPTER - 2
INDUSTRY PROFILE
INDUSTRY PROFILE

A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

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

The Indian FMCG industry witnessed significant changes through the 1990s. Many players
had been facing severe problems on account of increased competition from small and
regional players and from slow growth across its various product categories. As a result, most
of the companies were forced to revamp their product, marketing, distribution and customer
service strategies to strengthen their position in the market.

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

The realization of the customer's growing awareness and the need to meet changing
requirements and preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail
space, rapid urbanization, and qualified manpower also boosted the growth of the organized
retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG
industry by focusing on rural markets, direct distribution, creating new product, distribution and
service formats. The FMCG sector also received a boost by government led initiatives in the 2003
budget such as the setting up of excise free zones in various parts of the country that witnessed
firms moving away from outsourcing to manufacturing by investing in the zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will
not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is
the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs.
A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

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

BEVERAGES

NON-
ALCOHOLIC
ALCOHOLIC

NON-
CARBONATED
CARBONATED

COLA NON-COLA NON-COLA

Fig 2.0 BEVERAGES IN INDIA

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

 Alcoholic, non-alcoholic and sports beverages.

 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior
citizens.
 Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.
If the behavioural patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

 The quality and the consistency of beverages needs to be enhanced so that

consumers are satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong and safe
feeling that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or
prestige relevant to the category.
 Communication should be relevant and trendy so that consumers are able to
find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for
brand and sales growth in turn to add up to the overall growth of the food and beverage
industry in the economy
COMPANY PROFILE
COMPANY PROFILE

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 shareowners while being mindful of our
overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

WINNING CULTURE

Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality.

LIVEOUR VALUES
Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.

FOCUS ON THE MARKET

 Focus on needs of our consumers, customers and franchise partners.
 Get out into the market and listen, observe and learn.
 Possess a world view.
 Focus on execution in the marketplace every day.
 Be insatiably curious.

WORK SMART
 Act with urgency.
 Remain responsive to change.
 Have the courage to change course when needed.
 Remain constructively discontent.
 Work efficiently.
HISTORY OF COCA-COLA

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company,
a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin
Mariani, a European cocawine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine
Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was
initially sold as a patent medicine for five cents a glass at soda fountains, which were popular
in the United States at the time due to the belief that carbonated water was good for the
health.[9] Pemberton claimed Coca-Cola cured many diseases, including morphine addiction,
dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for
the beverage on May 29 of the same year in the Atlanta Journal.

By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an
on-going addiction to morphine, Pemberton sold the rights a second time to four more
businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile,
Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his
beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out
to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out
of the business. Candler purchased exclusive rights to the formula from John Pemberton,
Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her
signature on the bill of sale had been forged, and subsequent analysis has indicated John
Pemberton's signature was most likely a forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910 Candler had the earliest records of the company burned, further
obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the
status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen,
after the company made minor changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke
first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at
the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The
original bottles were Biedenharn bottles, very different from the much later hobble-skirt
design that is now so familiar. Asa Candler was tentative about bottling the drink, but two
entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead,
proposed the idea and were so persuasive that Candler signed a contract giving them control
of the procedure for only one dollar. Candler never collected his dollar, but in 1899
Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed
contract proved to be problematic for the company for decades to come. Legal matters were
not helped by the decision of the bottlers to subcontract to other companies, effectively
becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately at
pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset
stomach.

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the
drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the
taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for
the public's nostalgia for the old drink, leading to a backlash. The company gave in to
protests and returned to a variation of the old formula, under the name Coca-Cola Classic on
July 10, 1985.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005
they planned to launch a Diet Coke product sweetened with the artificial sweetenersucralose,
the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another
diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame
potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins
B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it was
revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab
League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."
The word "Classic" was truncated because "New Coke" was no longer in production,
eliminating the need to differentiate between the two. The formula remained unchanged.

In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce
bottles sold in parts of the south eastern United States. The change is part of a larger strategy
to rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices
of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.
GLOBAL MARKET SHARE OF COCA-COLA

In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An
increased consumer preference for healthier drinks has resulted in slowing growth rates for
sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO’s sales.
KO’s profits are also vulnerable to the volatile costs for the raw materials used to make
drinks - such as the corn syrup used as a sweetener, the aluminium used in cans, and the
plastic used in bottles. Furthermore, slowing consumer spending in Coke's large North
American market compounds the challenge of increasing costs and a weak economic
environment. Finally, Coca-Cola earns approximately 75% of revenue from international
sales, exposing it to currency fluctuations, which are particularly adverse with a stronger U.S.
Dollar (USD).

Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is
growing quickly, the traditional CSD market is still large in terms of both revenues and
volume and highly lucrative. The size and variety of KO’s offerings in the CSD category,
coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO to
maintain its share of this important market. KO has also responded to consumers’ changing
tastes with new, non-CSD product launches and acquisitions such as that of Glace au in 2007.
Strong international growth has also more than offset a weak domestic market.
On February 25, Coca-Cola Company announced its plan to buy Coca-Cola Enterprises
(CCE) for $12.3 million.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, the
soft drink market has changed dramatically with consumers buying fewer soft drinks and
more non-carbonated beverages, such as Powerade and Dasani water. Under the new deal,
Coca-Cola Company will take control of the bottler's North America operations, giving the
company control over 90% of the total North America volume. In return, Coca-Cola
Enterprises will take over Coke's bottling operations in Norway and Sweden, becoming a
European-focused producer and distributor.
In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice
company, OAO Nidan Juices. The company is 75% owned by a private equity firm in
London and 25% by its Russian founders and controls 14.5% of the Russian juice market. If
successful, the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's 30%
market share. The Russian juice market is estimated to be $3.2 billion dollars, and estimates
of Nidan's purchase price are between $560-$620 million.
In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit
smoothie maker. Last year the company bought an 18% share of the company for more than
$45 million, and recent purchases of additional shares increased Coke's stake to 58%.
In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715
million for the continued right to sell their products following the company's acquisition of
Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew for
an additional 20 years.

TRENDS AND FORCES

 The Global Economic Recession Threatens Overall Demand:

In 2008 and 2009, the global economy has fallen into a recession. Not just the United States
but countries from all over the world have felt the impacts of the 2008 Financial Crisis. This
may be a problem for Coke, which derives approximately 75% of its sales from outside North
America. Still, the company has positioned itself well in international markets both
organically and through acquisitions, such as that of Chinese juice maker Huiyuan for $2.4
billion. However the company was unsuccessful with its purchase of Huiyuan as it broke
antitrust laws in China. On March 5, 2010, Coke's CEO said that emerging markets are
bouncing back quicker than more developed markets.

 New Aversion To Soda Threatens Main Business:

74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it
particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been
negatively affected by concerns about health and wellness. This is true across most of KO's
markets. There has been an increase in the number of regulations regarding CSD in the
United States in response to the heightened desire for healthy food consumption.

In 2006, many state public school systems banned the sale of soft drinks on their campuses.
The Centre for Science and Public Interest proposed that a warning label be placed on all
beverages containing more than 13g of sugar per 12-oz serving. This proposal would affect
all non-diet, full calorie drinks produced by KO. These factors have driven a shift in
consumption away from CSD to healthier alternatives, such as tea, juices, and water.

Within the CSD segment consumers have been moving away from sugared drinks, opting
instead for diet beverages, which do not generally contain any sugar or calories.

Though KO has been somewhat slow to respond to this shift in consumer preferences, it has
recently begun to increase its development of both diet CSD and non-CSD beverages. KO is
faced with the task of balancing the risk of new innovations with the low growth rates of
established brands, a predicament for manufactures throughout the beverage industry.

 Dollar Affects International Performance:

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although
the company is based in the US, KO derives about 75% of its operating income from outside
United States. Because of this, the company is very sensitive to the strength of the dollar. As
foreign currencies weaken relative to the dollar, goods sold in foreign markets are suddenly
worth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as it
did in the second half of 2008 and 2009), it has a negative effect on KO's earnings. Coca-
Cola executives expect currency fluctuations to adversely affect 3Q09 operating income by
10-12% and 4Q09 operating income by high single digits.

KO has broad exposure to foreign currencies and actively hedges a large portion of these to
avoid wide swings in earnings from currency fluctuations. Although this hedging insulates
from the potential downside of a strengthening dollar, it also limits larger gains from drastic
downswings in the dollar's value.

 Commodity Cost Fluctuations Affect Margins:

The Coca-Cola Company’s profitability can be affected both directly and indirectly by the
costs of various production inputs. KO itself is responsible for purchasing the raw materials
used to make its concentrates and syrups. Variations in the prices for these goods can affect
the company’s total cost of production as well as its profit margins. Changes in the
production costs of bottlers can also impact KO’s profitability, though in a more indirect way.
If the raw materials necessary for bottling become more expensive, the bottler may be forced
to drastically raise prices to compensate.

Such a price increase would likely hurt KO, given the competitive nature of the non-alcoholic
beverage industry, and provide a possible incentive for consumers to switch to other
companies’ beverages.

Aluminium, corn, and PET resin are three examples of such production goods used by
bottlers that could have significant bearing on the Coca-Cola Company’s profit margins. In
2007, the prices of these commodities rose drastically with general commodities bubble and
dramatically pressured margins. They receded in 2008, but the possibility of another
significant rise in Commodities represents a constant threat to profits.

Poter’s Five Forces

 Bargaining 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
Through the early 1980's, Coke's domestic bottlers were typically independent family
businesses deriving from franchises issued early in the century. Pepsi had a collection of
similar franchises, plus a few large franchisees that owned many locations. Until 1980, Coke
and Pepsi were somewhat restricted in owning bottling facilities, which was viewed as a
restraint of free trade. Jimmy Carter, a Coke fan, changed that by signing legislation to allow
soft-drink companies to own bottling companies or territories, plus upholding the territorial
integrity of soft-drink franchises, shortly before he left office.
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.

 Bargaining 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. Until January 1993, aspartame was available
from just one source -the NutraSweet Company, a subsidiary of the Monsanto Company- in
the United States due to its patent, which expired at the end of 1992.
Coke managers have long held 'power' over sugar suppliers. They view the recently expired
aspartame patents as only enhancing their power relative to suppliers.
SWOT ANALYSIS OF COCA-COLA
 STRENGTHES WEAKNESS
Negative Publicity.
World's leading brand.
Decline in cash from
Large scale of operations.
Operating Activities.
Robust revenue growth in 3
Sluggish Performance in
segments.
North America.
SWOT
ANALYSI
S
OPPORTUNITIES
Acquisitions.
THREATS
Growing bottled water Intense Competition.
market. Dependence on bottling
Growing Hispanic Patners.
Population in U.S.
.

Fig 2.1 SWOT ANALYSIS OF COCA-COLA

STRENGTHES:

 World’s Leading Brand

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 in
2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. Coca-
Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand
value of $12,690 million Furthermore; 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.

 Large Scale Of Operations

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is
the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and
syrups in the world. Coco-Cola is selling trademarked beverage products since the year 1886
in the US. The company currently sells its products in more than 200 countries. Of the
approximately 52 billion beverage servings of all types consumed worldwide every day,
beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4
billion.

The company’s operations are supported by a strong infrastructure across the world. Coca-
Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturing
plants located throughout the world.

In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and
canning plants located outside the US. The company also owns bottled water production and
still beverage facilities as well as a facility that manufactures juice concentrates. The
company’s large scale of operation allows it to feed upcoming markets with relative ease and
enhances its revenue generation capacity.
  Robust Revenue Growth In 3 Segments

Coca-Cola’s revenues recorded a double digit growth, in three operating segments. These
three segments are Latin America, ‘East, South Asia, and Pacific Rim’ and Bottling
investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005.
During the same period, revenues from ‘East, South Asia, and Pacific Rim’ grew by 10.6%
while revenues from the bottling investments segment by 19.9%.

Together, the three segments of “Latin America”, “East, South Asia” and “Pacific Rim”
bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robust
revenues growth rates in these segments contributed to top-line growth for Coca-Cola during
2006.

WEAKNESS:

 Negative Publicity

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 received negative publicity in India during
September 2006.The company was accused by the Centre for Science and Environment
(CSE) of selling products containing pesticide residues. Coca-Cola products sold in and
around the Indian national capital region contained a hazardous pesticide residue.

On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr. Muhtar
Kent, President and Chief Executive Officer, to warn him that the FDA had concluded that
Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food, Drug,
and Cosmetic Act.

In January 2009, the US consumer group the Centre for Science in the Public Interest filed a
class-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along
with the company's flavours, of Vitamin Water. Claims say that the 33 grams of sugar are
more harmful than the vitamins and other additives are helpful.

 Sluggish Performance In North America

Coca-Cola’s performance in North America was far from robust. North America is Coca-
Cola’s core market generating about 30% of total revenues during fiscal 2006. Therefore, a
strong performance in North America is important for the company.

In North America the sale of unit cases did not record any growth. Unit case retail volume in
North America decreased 1% primarily due to weak sparkling beverage trends in the second
half of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover,
the company also expects performance in North America to be weak during 2007. Sluggish
performance in North America could impact the company’s future growth prospects and
prevent Coca-Cola from recording a more robust top-line growth.

 Decline In Cash From Operating Activities

The company’s cash flow from operating activities declined during fiscal 2006. Cash flows
from operating activities decreased 7% in 2006 compared to 2005. Net cash provided by
operating activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-
Cola’s cash flows from operating activities in 2006 also decreased compared with 2005 as a
result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree
medical benefits.

The decrease was also the result of certain marketing accruals recorded in 2005.Decline in
cash from operating activities reduces availability of funds for the company’s investing and
financing activities, which, in turn, increases the company’s exposure to debt markets and
fluctuating interest rates.
OPPORTUNITIES:

 Acquisitions

During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently,
reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling
shareholding in KBL, its bottling joint venture with the Kerry Group, in Hong Kong.
The acquisition extended Coca-Cola’s control over manufacturing and distribution joint
ventures in nine Chinese provinces.

In Germany the company acquired Apollinaris which sells sparkling and still mineral water.
Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company in South

Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. These
acquisitions strengthened Coca-Cola’s international operations.

These also give Coca- Cola an opportunity for growth, through new product launch or greater
penetration of existing markets. Stronger international operations increase the company’s
capacity to penetrate international markets and also gives it an opportunity to diversity its
revenue stream. On 25 February 2010, Coco cola confirms to acquire the Coca cola
enterprises (CCE) one the biggest bottler in North America. This strategy of coca cola
strengthens its operations internationally.

 Growing Bottled Water Market

Bottled water is one of the fastest-growing segments in the world’s food and beverage market
owing to increasing health concerns. The market for bottled water in the US generated
revenues of about $15.6 billion in 2006.

Market consumption volumes were estimated to be 30 billion litres in 2006. The market's
consumption volume is expected to rise to 38.6 billion units by the end of 2010. This
represents a CAGR of 6.9% during 2005-2010.
In terms of value, the bottled water market is forecast to reach $19.3 billion by the end
of 2010. In the bottled water market, the revenue of flavoured water (water-based, slightly
sweetened refreshment drink) segment is growing by about $10 billion annually. The
company’s Dasani brand water is the third best-selling bottled water in the US. Coca-Cola
could leverage its strong position in the bottled water segment to take advantage of growing
demand for flavoured water.

 Growing Hispanic Population In U.S

Hispanics are growing rapidly both in number and economic power. As a result, they have
become more important to marketers than ever before. In 2006, about 11.6 million US
households were estimated to be Hispanic. This translates into a Hispanic population of about
42 million.

The US Census estimates that by 2020, the Hispanic population will reach 60 million or
almost 18% of the total US population. The economic influence of Hispanics is growing even
faster than their population. Nielsen Media Research estimates that the buying power of
Hispanics will exceed $1 trillion by 2008- a 55% increase over 2003 levels.

Coca-Cola has extensive operations and an extensive product portfolio in the US. The
company can benefit from an expanding Hispanic population in the US, which would
translate into higher consumption of Coca-Cola products and higher revenues for the
company.

THREATS:

 Intense Competition

Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages

industry. The company faces intense competition in various markets from regional as well as
global players. Also, the company faces competition from various non-alcoholic sparkling
beverages including juices and nectars and fruit drinks. In many of the countries in which
Coca-Cola operates, including the US, PepsiCo is one of the company’s primary competitors.
Other significant competitors include Nestle, Cadbury Schweppes, Groupe DANONE and
Kraft Foods.

Competitive factors impacting the company’s business include pricing, advertising, sales
promotion programs, product innovation, and brand and trademark development and
protection. Intense competition could impact Coca-Cola’s market share and revenue growth
rates.

 Dependence On Bottling Partners

Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in
whom it doesn’t have any ownership interest or in which it has no controlling ownership
interest. In 2006, approximately 83% of its worldwide unit case volumes were produced and
distributed by bottling partners in which the company did not have any controlling interests.
As independent companies, its bottling partners, some of whom are publicly traded
companies, make their own business decisions that may not always be in line with the
company’s interests. In addition, many of its bottling partners have the right to manufacture
or distribute their own products or certain products of other beverage companies.

If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners,

then the partners may take actions that, while maximizing their own short-term profits, may
be detrimental to Coca-Cola. These bottlers may devote more resources to business
opportunities or products other than those beneficial for Coca-Cola. Such actions could, in
the long run, have an adverse effect on Coca-Cola’s profitability.

In addition, loss of one or more of its major customers by any one of its major bottling
partners could indirectly affect Coca-Cola’s business results. Such dependence on third
parties is a weak link in Coca-Cola’s operations and increases the company’s business risks.
PRODUCTS OF COCA-COLA INDIA

COCA-COLA:-
GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
1000ml 2.25L, 500ml, 100ml

Table - 1.0

LIMCA:-
GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.1

THUMS UP:-
GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.2
 SPRITE:-
RGB PET CAN FOUNTAIN
200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES
1250ml, 1500ml,
2000ml, 2250ml

Table – 1.3

FANTA:-
GLASS PET CAN FOUNTAIN
200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
2.25L, 500ml, 100ml

Table – 1.4

MAAZA:-

RGB PET POCKET MAAZA

200ml, 250ml 250ml, 600ml, 1.2L 200ml

Table – 1.5
 GEORGIA GOLD COFFEE:-
HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino,
Hot Chocolate, Cardamon Tea.
COLD BEVERAGES Ice Teas, Cold Coffee.

Table – 1.6

:-
MARKETING MIX OF COCA-COLA INDIA

 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 2002, Packaged drinking water in India was an
Rs 1,000 cr industry and growing by 40% every year. PDW was a low margin – high volume
business, but it was an attractive proposition for bottlers as it increased plant utilization rates.
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 “BhoondBhoond 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.

 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. So the 200ml pack priced at Rs 5
was rolled out countrywide in January 2003. The advertising Campaign highlighted the
affordability and Indian image.

To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places
in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing
marketing exercise conducted in mid – 2002. In 2002 Kinley with 35% market share had
become the leader in the retail PDW segment and was contributing 20% of CCI’s revenues.
  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 headquarters.

 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.
Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen
by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well
known personalities popular to this age group. During 90'ies Coke's promotion efforts did not
seem to be effective. They were focused on mega events like the 1996 Cricket World Cup
held in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing
official about it" campaign. Major analysts were surprised that Thumps Up was totally out of
the picture during such a mega event. In 1998 localization of marketing efforts, CCI signed
up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke
also began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was
declared the fastest growing market within the Coca-Cola system. But things were far from
normal.

Attempts at building growth through discounts and PET take home segment were not very
successful because of lack of coordination between the launches and marketing back-up.

To maintain good relationships with bottlers and avoid defections to the other camp, dealers
had been pampered by offering expensive overseas trips. In 2000, Coke wrote off
investments in India, amounting to $400 Mn. The revised value of CCI's assets after the
charge was $300 mn.

CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had
become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a
juice brand and saw a growth of almost 30% in 2001. 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. Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra.
KEY PERSONS OF COCA COLA

Herbert A. Allen

President and Chief Executive Officer

Allen & Company Incorporated

Herbert A. Allen has been director of The Coca-Cola Company since 1982. Mr. Allen is
President, Chief Executive Officer and a Director of Allen & Company Incorporated, a
privately held investment firm, and has held these positions for more than the past five years.
He previously served as a Director of Convera Corporation from 2000 to 2010.

Ronald W. Allen

Former Chairman of the Board, President, Chief Executive Officer

Marc Bolland

Head of European Portfolio OperationsThe Blackstone Group L.P.

Ana Botín

Executive Chairman
Banco Santander, S.A.

RICHARD M DALE CEO

 Barry Diller
Executive chairman of the board and senior

IA C/

Helene D. Gayle

Chief Executive Officer

The Chicago Community Trust
Expedia, Inc.

Alexis M. Herman
Chair and Chief Executive Officer

New Ventures, LLC

Bobby Kotick
President, Chief Executive Officer
and Director Activision Blizzard, Inc.
Maria Elena Lagomasino

Chief Executive Officer and Managing Partner

WE Family Offices

Sam Nunn
Co-Chairman and Former Chief Executive Officer

Nuclear Threat Initiative (NTI)

James Quincey
President and Chief Executive Officer
The Coca-Cola Company

David B. Weinberg

Chairman of the Board and Chief Executive Officer

Judd Enterprises, Inc.
SOUTH WEST ASIAN BUSINESS UNIT

T. Krishnakumar (KK)
President Coca-Cola India and
South West Asia Business Unit

Christina Ruggiero,
Chief Executive Officer,
Hindustan Coca-Cola
AWARDS AND RECOGNISITION
 CHAPTER - 3
RESEARCH
METHODOLOGY
 OBJECTIVES OF THE STUDY

 The main objective of the project is to analyse and study in efficient way the
current position of Coca- Cola Company.

 To perform PESTLE and SWOT analysis of Coca-Cola globally as well as

locally. This would help us identify areas of potential growth.

 The study was aimed to perform Market Analysis of Coca-Cola Company &
find out different factors effecting the growth of Coca-Cola.

 Another objective of the study was to perform Competitive analysis between

Coca-Cola and its competitors.

 To understand the reasons behind the purchase of Coca-Cola products.

SCOPE OF THE STUDY:-

This study basically tries to discover the current position of Coca-Cola in the market. It
also tries to discover the preferences of the customers when posed with a choice between
Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in
New Delhi, Noida and Greater Noida
  This study will help to the company to know about their new concepts position in the
market
 This study will help the company also to know its promotional activities
 Through this study the company will know about the visibility of its products in the
market
 Through this study will help the company to increase the sales through effective
utilization of activation elements
 During my project i came to know about Pepsi-co Marketing strategy that is the
biggest competitor of coco cola

PURPOSE OF THE STUDY:

The main purpose of the study is to find out the consumer

preference effectiveness of coco cola and the influence of

an openness to new cultures and sense for improving

customers

Good demand and Quality are the major reasons for

consumer for opting brand.

PERIOD OF STUDY:

I have done my internship for 3 months in sunny days

My research of study is on consumer preference on HINDUSTAN COCO

COLA BEVERAGES PVT LTD

MY research period is for 90 days

Totally I have done my research for 90 days and

REVIEW OF LITERATURE :
1-ASTUDY OF FACTORS RESPONSIBILE FOR BRAND
PREFERENCE IN FMCG SECTOR:
The purpose of this paper is the study of factors responsible for brand preference in fmcg
products, increasing competition ,more due to globalization, is motivating many companies to
base their strategies almost entirely on building brands .brand preference means to compare
the different brands and opt for the most preferred brand .This brand preference is influenced
by various factors

According to this study many factors were find out for preferring a brand like

Brand person

Brand constancy

Brand value

Brand loftiness

In the identification of factors affecting the brand preference , it was concluded that brand
person is the most effective factor that affects the brand preference this brand person deals
with the personality aspects or the external attributes of brand thus it can be said that
consumer prefer any brand by looking at external attributes

2-COLOUR AND FLAVOUR RULE CONSUMER PREFERENCE

:STUDY
The intensity of colour and the flavour are the key drives behind consumer acceptance of
beverage , says a new study involving DANONE but packing and labelling are not as
important for wining over consumers, according to findings published in the journal

FOOD QUALITY AND PREFERENCE, The study involved consumers a different stages of
development and highlights the importance of adopting a sensory marketing approach said
the researchers from French research organisation adriant The experiment showed the
feasibility of the proposed multi sensory design method based on mixed qualitative and
quantitative approaches. The study also demonistrates the importance of flavour and colour
selection for new products
3-TASTE OR HEALTH :A STUDY ON CONSUMER ACCEPTANCE OF
COLA DRINKS:
This study examines the relative contributions of taste and health consideration on consumer
liking and purchase intent of cola drinks . Eight types of commercial cola drinks were
evaluated by 305 adult consumer who also completed a brief questionnaire on food habits
Data were analyzed using factor analysis .results revealed that purchase intent of cola drinks
was strongly related to degree of liking and to several key sensory attributes including
saltines ,drinks flavour and greasiness. These variables emerged as the first factor in the
analysis suggesting that consumer perceive these characteristics as being most important in
their choice of cola drinks .Factors 2 describe a health dimension and was related to
respondents attitudes towards fat in the diet . Factor 3 comprised two remaining sensory
attributes which apparently were of minor importance to respondents . these data suggest that
in spite of current concern about reducing dietary fat health remains secondary to taste in
selection o cola drinks for consumer in this population

4-CONSUMER AWARENESS AND CONSUMPTION PATTERN OF

FOOD PRODUCTS :
This paper aims to investigate the degree of brand awareness of various food products in
relation to background and education of the house hold , the consumption pattern of various
food products consumed by respondents in light of their areas income levels and education a
sample of 200 respondents comprising 100 form rural area and 100 from urban area were
taken. Data are analyzed with the help of mean SD,CO-EFFECIENT of variance –test and f
–test

The finding of this study reveals that there is low degree of brand awareness in rural areas,
whereas there is a moderate degree of brand awareness in urban India. This highly educated
rural and urban respondents have low degree of brand awareness for many food products
Research Design

A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:-

 Exploratory Research.
 Descriptive Research.
 Casual Research.

1. Exploratory Research:-

The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.

2. Descriptive Research:-

The objective of descriptive research is to describe things, such as the market potential for
a product or the demographics and attitudes of consumers who buy the product.

3. Casual Research:-

The objective of casual research is to test hypothesis about casual and effect relationships.

Based on the above definitions it can be established that this study is a Descriptive Research
as the attitudes of the customers who buy the products have been stated. Through this study
we are trying to analyse the various factors that may be responsible for the preference of
Coca-Cola products.
 SOURCES OF DATA

The data has been collected from both primary as well as secondary sources.

Secondary Data:-

It is defined as the data collected earlier for a purpose other than one currently being pursued.
As a researcher I have scanned lot of sources to get an access to secondary data which have
formed a reference base to compare the research findings. Secondary data in this study has
provided an insight and forms an outline for the core objectives established.

The various sources of secondary data used for this study are:-

 Newspapers.
 Magazines.
 Text books.
 Marketing reports of the company.
 Internet.

Primary Data:-

The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in
this study.
The methods that have been used to collect the primary data are:-

 Questionnaire.
RESEARCH MEASURING TOOLS & TECHNIQUES

The primary tool for the data collection used in this study is the respondent’s response to the
questionnaire given to them. The various research measuring tools used are:-

 Questionnaire.
 Personal interview.
 Tables.
 Percentages.
 Pie-charts.
 Bar-charts.
 Column charts.
 SAMPLING DESIGN

An integral component of a research design is the sampling plan. Especially it addresses three
questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to
select them (sampling Procedure). Making the census study of the entire universe will be
impossible on the account of limitations of time and money. Hence sampling becomes
inevitable. A sample is only his portion of population. Properly done, sampling produces
representative data of the entire population.

SAMPLE SIZE:-

i. Through questionnaire – 50 respondents.

SAMPLING TOOL:-

Questionnaire was used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.

Sampling Tools Respondents Number

Questionnaire Customers 50
Total 50

Table – 1.7
FIELD WORK:-

The study was conducted in New Delhi, Noida and Greater Noida.
 The questionnaires were given to the respondents to fill in order to get their
feedback.
 Questions were read out to the respondents and the answers were noted.
LIMITATIONS OF THE STUDY:-

The main purpose of this study is get idea about the preference of the customers towards
various Coca-Cola products. But there are certain factors which affects this study they are as
follow:
 Since the sampling procedure was judgmental, the sample selected may not be
true representative of the population.

 Economic and market conditions are very unpredictable (Present and future).

 The project duration is limited to 4 weeks so it limits the area of study.

 The study was confined to New Delhi, Noida and Greater Noida due to which
the result cannot be applied universally.
 CHAPTER - 4
DATA ANALYSIS AND INTERPRETATION
 1) A question was asked to the customers whether they consume soft drinks or not and
the following are the results.

ATTRIBUTES NO.OF % OF RESPONDENTS

RESPONDENTS
Yes 45 90%
No 05 10%
Total 50 100%

The above table depicts that 90% of the respondents consume soft drinks.

Graph showing the percentage of the nature of consumption.

100

90

80

70

60

50 Column2
Column1
40

30

20

10

0
yes no

The survey was conducted on 50 respondents wherein I found that about 90% of the surveyed
CONSUMERS CONSUMED SOFT DRINKS AND ONLY ABOUT 10% did not.
 2) A question was asked to the consumers to know how often they consume .

ATTRIBUTES NO. OF RESPONDENTS % OF RESPONDENTS

Daily 35 70%
Twice in a week 9 18%
Once in a week 5 10%
Once in a month 1 2%
Total 50 100%

The above table depicts that 18% of the consumers consume soft drinks twice week
and the major percentage of consumers consume soft drinks daily.

Graph showing the soft drinks consumption habit of the people.

80

70

60

50

40 Series 2
Series 3
30

20

10

0
daily twice in a week once in a week once in a month

The survey was conducted on 50 respondents wherein I came to know that more than 50%
i.e. about 70% of the surveyed people consumed soft drinks daily.
 3) A question was asked to the consumers that about their favourite soft drink and the
following are the results .

ATTRIBUTES NO.OF RESPONDENTS % OF RESPONDENTS

Coca- cola 14 28%
Thumbs up 16 32%
Sprite 7 14%
7 up 7 14%
Dew 4 08%
Others 2 04%
Total 50 100%

The above table depicts that 32% of the respondents consume thumbs up , 14% of the
respondents consume sprite , and 28% of the consumers consume coca-cola.

Graph showing percentage of how favourite a particular soft drink of the surveyed consumer
is.

35

30

25

20

Series 2
15

10

0
coca-cola thumbs up sprite 7 up dew others

The survey was conducted on 50 respondents wherein I learn about how favourite a particular
soft drinks is. Here thumbs up took the lead by 32% and coca-cola by 28%.
 4) A question was asked to the consumers whether the price is affordable or not and the
following are the results.

ATTRIBUTES NO. OF RESPONDENTS % OF RESPONDENTS

Affordable 38 76%
Costly 06 12%
Lesser 03 06%
Can’t say 03 06%
Total 50 100%

The above table depicts that 76% of the respondents can afford , 12% of the respondents feel
the product is costly , and 6% of the respondents feel the product is less costly than it should
be. 6% of the respondents cannot say about the product price.

Graph showing the percentage of affordability of soft drinks.

80

70

60

50

40 Series 2
Series 3
30

20

10

0
affordable costly lesser can't say

The survey was conducted on 50 respondents wherein I came to know that the soda products
were very much affordable.
 5) A question was asked to the consumers about his reasons for preferring the drink and
following are the results.

ATTRIBUTES NO. OF RESPONDENTS % OF RESPONDENTS

Taste 20 40%
Quenching thirst 07 14%
Strong 13 26%
Gas content 08 16%
Others 02 04%
Total 50 100%

The above table depicts that 40% of the respondents consume the product preffering the taste,
14% of the respondents consume the product to quench the thirst and 16% of the respondents
consume the product for its gas content.

Graph showing the percentage of preference of the drink.

45

40

35

30

25
Series 1
20 Series 2
15

10

0
taste quenching thirst strong gas content others

The survey was conducted on 50 rspondents wherein by looking into the above given data I
can say that 40% of the surveyed respondents drink soft drinks for the taste.
 6) A question was asked to the consumers about the role of flavour in the product
promotion and the following are the results.

ATTRIBUTES NO. OF RESPONDENTS % OF RESPONDENTS

Very efficient 30 60%
Efficient 11 22%
Neither efficient nor 04 8%
inefficient
Inefficient 05 10%
Total 50 100%

The above table depicts that 22 % of the respondents feel the flavour is efficient , 60% of the
respondents feel the flavour is very efficient, 8% of the respondents feel the flvour is neither
efficient nor inefficient, 10% of the respondents feel the flavour is inefficient.

Graph showing the percentage of how the role of flavour in the product promotion if
effective.

70

60

50

40
Series 1
30
Series 2

20

10

0
very efficient efficient neither efficient nor inefficient
inefficient

The survey was conducted on respondents wherein I came to know that flavour played most
important role in the product promotion.
 7) A question was asked to the consumers about their opinion on packaging of the
product and the following are the results.

ATTRIBUTES NO. OF RESPONDENTS % OF RESPONDENTS

Very good 15 30%
Good 35 70%
Neither good nor bad 00 00%
Bad 00 00%
Total 50 100%

Graph showing percentage of the consumer’s opinion on packaging of the product.

80

70

60

50

40 Series 1

30 Series 2

20

10

0
very good good neither good nor bad
bad

The survey was conducted on 50 respondents wherein I came to know that there are no
negative remarks towards the packaging of the products.
 8) A question was asked to the consumers about the impact on product promotion and
following are the results.

ATTRIBUTES NO. OF RESPONDENTS % OF RESPONDENTS

Very effective 20 40%
Effective 25 50%
Neither effective nor 03 06%
ineffective
Ineffective 02 04%
Total 50 100%

Graph showing the percentage of effective the product promotion is.

60

50

40

30 Series 1
Series 2
20

10

0
very effective effective neither effective ineffective
nor ineffective

The survey was conducted on 50 respondents wherein I came to know about the effectiveness
of the product promotion. Hereabout 50% of the surveyed consumer said it as effective and
40% said it was very effective.
 9) A question was asked to the consumers about the product availability and the
following are the results.

ATTRIBUTES NO.OF RESPONDENTS % OF RESPONDENS

Within the reach 43 86%
So far 5 10%
Difficult to get 2 04%
Total 50 100%

Graph showing the percentage of how easily the products are available.

100

90

80

70

60
Series 1
50
Series 2
40 Series 3
30

20

10

0
within reach so far difficult to get

The survey was conducted 50 respondents wherein 86 % of the surveyed respondents said
that the product was within their area of reach.
 10) A question was asked to the consumers about the media , which shows impact on
product promotion , the following are the results.

ATTRIBUTES NO.OF RESPONDENTS % OF RESPONDENTS

T.V 30 60%
News paper 05 10%
Hoarding 07 14%
Internet 08 16%
Total 50 100%

Graph showing the percentage level of the media through which the consumers came to know
about the product.

70

60

50

40 Series 1
Series 2
30
Series 3

20

10

0
t.v news paper hoarding internet

The survey was conducted on 50 respondents wherein I learned that televisions are the most
effective media of promotion.
 CHAPTER-5
FINDINGS ,
SUGGESTION ANDCONCLUSION
 FINDINGS

The study undertaken has highlighted certain facts . they are

 The important factors that influence the purchase decisions of a

soft drink are the taste and flavour.

 Besides the factors mentioned above the other important factors

that influence the purchase decisions were found to be
advertising and price.

 Sales promotion program taken up by the company is also

popular among the respondents. The product is very much
popular among the respondents . the product is very much
popular for its easy availability.
 SUGGESTIONS

The suggestions made in this section are based on the market study conducted as part of
“Coca-Cola India”. The suggestions are arranged in order of priority, highest first.

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

 The company should make hindrance free arrangement for its

customers/retailers to make any feedback or suggestions as and when they feel.

 The company should focus to bring some more flavours like health drinks
and other low-calorie offerings.Coca-Cola India can also introduce some fruit based
drinks, as it has already entered the energy drink arena with “Burn”.

 Coca-Cola’s distribution channel is mostly through retail. Whereas the

competitors also concentrates more on the multiplexes, pubs and restaurants. Coca-
Cola should try to increase their distribution in these areas.

 The company must keep a watch on its primary competitors in market in

order to be able to compete with them.

 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.

 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.

 A strong watch should be kept on distributors so that the goodwill of the

BRAND doesn’t get affected.
 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.

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 you need to be always on your toes.
 CHAPTER- 6

BIBILOGRAPHY
BIBLIOGRAPHY

BOOKS:

 Philip Kotler and kevin lane keller ,“Marketing Management: Analysis, Planning,
Implementation, and Control” , Prentice Hall .
 C.R. Kothari , “research methodology “ , new age international publishers.

WEBSITES:
 www.thecoca-colacompany.com
 www.news.bbc.co.uk
 www.india-server.com
 www.magindia.com
 www.coca-colaindia.com
 www.wikiinvest.com
 www.open2.net
 www. Shopify .com

OTHERS
 Annual report of Coca-Cola 2017.
 Annual report of Coca-Cola 2016.
 CHAPTER- 7

APPENDIX QUESTIONNAIRE
QUESTIONNAIRE
 NAME:
..............................................................................
 GENDER:
a) Male b) Female

 Do you drink Soft drinks?

a) Yes
b) No

 How often do you have soft drinks per week?

a) Once a week
b) Twice a week
c) Thrice a week
d) Everyday
e) Rarely

 What drink comes to your mind when you think of soft drinks?
a) Coca-Cola
b) Pepsi
c) Other products of Coca-Cola
d) Other products of Pepsi
e) Other drinks

 What quantity do you usually prefer to buy?

a) 200-250 ml Glass bottle
b) 300 ml Can
c) 500 ml Pet bottle
d) 1 litre
e) 2 litre

 What do you feel about Coca-Cola product range?

a) Excellent
b) Good
c) Satisfactory
d) Below Satisfactory
e) Bad
  What occasions do you prefer to buy Coca-Cola products?
a) Festivals
b) Picnics
c) Parties
d) Cinemas
e) Just like that

 What is your most preferred channel for purchasing Coca-Cola products?

a) Super markets
b) Retails
c) Vendor Machines
d) Pubs & Restaurants
e) Multiplexes

 How much do you spend on Coca-Cola products per week?

a) 50-100
b) 100-150
c) 150-200
d) Above 200

 Put (X) mark in which ever you feel is appropriate?

Parameters / Product Coca-Cola Products Pepsi Products
1) Branding
2) Quality
3) Price
4) Taste
5) Availability
6) Satisfaction

 What kind of products do you want Coca-Cola to introduce in the future?

a) Fizzy Drinks
b) Fruit Drinks
c) Energy Drinks
d) Alcoholic Drinks
...............................................................................................................

Thank you!