Professional Documents
Culture Documents
of
SUBMITTED BY:
Ranjeet Singh
Roll no. 1804870067
Batch 2018-20
SUBMITTED TO:
Dr. Sadhvi Mehrotra
Asst. Professor
professional courses in the field of management. This course includes both theory and its
Of Management Studies It gives exposure to our practical knowledge and also to get interact
with the various aspects of present market conditions. Each student is required to
The Training project programmers are designed to give the managers the future of the
corporate happenings and work culture. The real life situation is really different from the
programmers are designed, so that the managers or tomorrow do not feel when the time
The Training project report presented here is a result of my hard work. This project
Department Mr. Anuj Srivastawa and our Librarian and other teachers for this
would like to thank each and every person who helped me in completing the
RANJEET SINGH
Contents
TITLE
2. INTRODUCTION OF COMPANY
15-46
3. LITRETURE REVIEW 47-64
65-71
4. RESEARCH METHODOLOGY
72-75
5. DATA ANALYSIS and interpretation
76-92
6. FACTS AND FINDING
93-96
7. RECOMMENDATION AND SUGGESTION
97-99
8. CONCLUSION
100-104
9. Annexure
INTRODUCTION
OF
INDUSTRY
1|Page
1. INTRODUCTION OF INDUSTRY
The introduction of soft drink was due to necessity of traveling particular in the absence of
availability of reliable water. But meaning quietly changed with changing in time. It has become so,
The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th century.
They were made from water and lemon juice sweetened with honey. In 1676, the Companies des
Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors carried
tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.
Carbonated drinks:-
In the late 18th century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of
infusing water with carbon dioxide to make carbonated water which has 3.4 mg in the drink[5] when
he suspended a bowl of distilled water above a beer vat at a local brewery in Leeds, England. His
invention of carbonated water (also known as soda water) is the major and defining component of
1|Page
Priestley found that water treated in this manner had a pleasant taste, and he offered it to friends as a
refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed Air in
which he describes dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to produce
carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water.[7]
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for
commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating apparatus
that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed
imitation mineral water to be produced in large amounts. Swedish chemist Jones Jacob
Berzelius started to add flavors (spices, juices, and wine) to carbonated water in the late 18th century.
Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle
tops during the early days of the bottling industry. Carbonated drink bottles are under great pressure
from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles
from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore,
Maryland machine shop operator. It was the first very successful method of keeping the bubbles in
the bottle.
The Coca Cola Company was incorporated in September 1919 under the laws of the State of
Delaware and succeeded to the business of a Georgia Corporation with the same name that had been
organized in 1892. Coca Cola Company is one of numerous competitors in the commercial
beverages market. Of the approximately 53 billion beverage servings of all type of consumed
worldwide every day.Beverages bearing trademarks owned by or licensed to company account for
2|Page
The corporate nourishing the global community with the worlds largest selling soft drink
concentrates since 1886. Coca Cola Company put his first step in India in 1952 but withdrew
completely in 1977 due to change in Indian Government polices. Again returned to India in 1993
after a gap of 16 years giving a new thumb up to the Indian Soft Drink Market. In the same year, the
Company took over ownership of the nation's top soft-drink brands and bottling network. No
wonder, their brands have assumed an iconic status in the minds of the consumers.
Gold Spot considered as the first soft drink, established 50 years ago before all empowering Coca-
Cola entered the company to dominate the scene. It faced no competition and its euphoric image
built up in western countries helped it get ready clientele & glamour. Parle export private ltd. should
be regarded as the first Indian company introducing limca a lemon drink complimentary to their well
entiemched Gold Spot in 1970 which got moderate success. However, before this, it had also
introduced Cola-Pepino which was withdrawn in face tough competition from Coca-cola.
Coca-Cola serves in India some of the most recalled brands across the world, which include names
such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the Schweppes product range. The
acquisition of Thums Up brought some of the leading national soft drinks like Thums Up, Limca,
Maaza, Citra and Gold Spot under its umbrella. To add to this, Kinley mineral water was launched in
3|Page
THE VALUE CHAIN
The Coca-Cola
Company
Bottler
Customer
Consumer
4|Page
When Coca-cola bid farewell in 1977, Indian market was open for various cold drinks and several
companies came forward pushing the different in the market. Parle people introduced their Cola-
Thumps Up with a mightily bang saying “Happy days are here again” as if happy days went away
with Coca-cola pure drinks of Delhi, also without loosing much time introduced pure drinks with
Campa Orange and Campa Lemon. Modern bakeries interested the market Double Seven, Mohan
Meakings with Marry and Pick Up & McDowell with Thrill, Rush and Sprint and Indian Market
where there was competition previously a cut throat competition and heavy advertising was on. Each
one was trying their best to be come under one company with “A Class” products in the field of soft
drink business, now after a long gap; Govt. of India had given permission to the Coca-Cola to start
their business in India. Coca-Cola came with Parle to do business on the Indian soil. They are trying
The government has adopted liberalized policies for the soft drink trade to give the industry a boast
and promote the Indian brands internationally. Although the import and manufacture of international
brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by
advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of
domestic players like Campa, Thumps up, Limca etc but with opening up of economy and coming of
MNC players Pepsi and Coke the market has come totally under their control.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption.
Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can
be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and
non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come
The market can also be segmented on the basis of types of products into cola products and non-cola
products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that
5|Page
fall in this category are Pepsi, Coca- Cola, Thumps Up, Diet Coke, Diet Pepsi etc. Non-cola segment
which constitutes 38% can be divided into 4 categories based on the types of flavors available,
OPERATING GROUP:-
The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating Groups:
Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling Investments.
Certain prior year amounts have been reclassified to conform to the current year presentation.
1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB) Interpretation No.
48, "Accounting for Uncertainty in Income Taxes" and recorded an approximate $65 million increase
in accrued income taxes in their consolidated balance sheet for unrecognized tax benefits, which was
accounted for as a cumulative effect adjustment to the January 1, 2007 balance of reinvested
earnings.
2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS) No.158,
"Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans -- an
3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure Guidance
for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004" in
2004. FSP No. 109-2 allowed the Company to record the tax expense associated with the repatriation
of foreign earnings in 2005 when the previously unremitted foreign earnings were actually
repatriated.
6|Page
4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest Entities,"
History
The origins of soft drinks lie in the development of fruit-flavored drinks. In the medieval Middle
East, a variety of fruit-flavored soft drinks were widely drunk, such as sharbat, and were often
sweetened with ingredients such as sugar, syrup and honey. Other common ingredients included
lemon, apple, pomegranate, tamarind, jujube, sumac, musk, mint and ice. Middle Eastern drinks later
became popular in medieval Europe, where the word "syrup" was derived from Arabic.[11] In Tudor
England, 'water imperial' was widely drunk; it was a sweetened drink with lemon flavor and
containing cream of tartar. 'Manays Cryste' was a sweetened cordial flavored with rosewater, violets
or cinnamon.[12]
Another early type of soft drink was lemonade, made of water and lemon juice sweetened with
honey, but without carbonated water. The Compagnie des Limonadiers of Paris was granted a
monopoly for the sale of lemonade soft drinks in 1676. Vendors carried tanks of lemonade on their
Carbonated drinks
In the late 18th century, scientists made important progress in replicating naturally carbonated
mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water
with carbon dioxide to make carbonated water[14] when he suspended a bowl of distilled water
above a beer vat at a local brewery in Leeds, England. His invention of carbonated water (also
known as soda water) is the major and defining component of most soft drinks.[15]
7|Page
Priestley found that water treated in this manner had a pleasant taste, and he offered it to his friends
as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed
Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to
produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water.[15]
Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for
commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating apparatus
that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed
imitation mineral water to be produced in large amounts. Swedish chemist Jöns Jacob Berzelius
started to add flavors (spices, juices, and wine) to carbonated water in the late eighteenth century.
Thomas Henry, an apothecary from Manchester, was the first to sell artificial mineral water to the
general public for medicinal purposes, beginning in the 1770s. His recipe for 'Bewley's Mephitic
Julep' consisted of 3 drachms of fossil alkali to a quart of water, and the manufacture had to 'throw in
Johann Jacob Schweppe developed a similar process to manufacture carbonated mineral water at the
same time. He founded the Schweppes Company in Geneva in 1783 to sell carbonated water,[16]
and relocated his business to London in 1792. His drink soon gained in popularity; among his new
found patrons was Erasmus Darwin. In 1843, Schweppes commercialized Malvern Water at the
Holywell Spring in the Malvern Hills, and received a royal warrant from King William IV.[17]
8|Page
It was not long before flavoring was combined with carbonated water. The earliest reference to
carbonated ginger beer is in a Practical Treatise on Brewing. published in 1809. The drinking of
either natural or artificial mineral water was considered at the time to be a healthy practice, and was
promoted by advocates of temperance. Pharmacists selling mineral waters began to add herbs and
chemicals to unflavored mineral water. They used birch bark (see birch beer), dandelion, sarsaparilla,
fruit extracts, and other substances. Flavorings were also added to improve the taste.
Soft drinks soon outgrew their origins in the medical world and became a widely consumed product,
available cheaply for the masses. By the 1840s there were more than fifty soft drink manufacturers –
an increase from just ten in the previous decade. Carbonated lemonade was widely available in
British refreshment stalls in 1833,[18] and in 1845 R. White's Lemonade went on sale in the UK.[19]
For the Great Exhibition of 1851 in London, Schweppes was designated the official drink supplier
and sold over a million bottles of lemonade, ginger beer, Seltzer water and soda-water. There was a
Schweppes soda water fountain, situated directly at the entrance to the exhibition.[12]
Mixer drinks became popular in the second half of the century. Tonic water was originally quinine
added to water as a prophylactic against malaria and was consumed by British officials stationed in
the tropical areas of South Asia and Africa. As the quinine powder was so bitter people began mixing
the powder with soda and sugar, and a basic tonic water was created. The first commercial tonic
water was produced in 1858.[20] The mixed drink gin and tonic also originated in British colonial
India, when the British population would mix their medicinal quinine tonic with gin.[12]
9|Page
The Codd-neck bottle provided an effective seal for soft drinks in the late 19th century
A persistent problem in the soft drinks industry was the lack of an effective sealing of the bottles.
Carbonated drink bottles are under great pressure from the gas, so inventors tried to find the best way
to prevent the carbon dioxide or bubbles from escaping. The bottles could also explode if the
pressure was too great. Hiram Codd devised a patented bottling machine while working at a small
mineral water works in the Caledonian Road, Islington, in London in 1870. His Codd-neck bottle
was designed to enclose a marble and a rubber washer in the neck. The bottles were filled upside
down, and pressure of the gas in the bottle forced the marble against the washer, sealing in the
carbonation. The bottle was pinched into a special shape to provide a chamber into which the marble
was pushed to open the bottle. This prevented the marble from blocking the neck as the drink was
poured.[12]
By mid-1873 he had granted 20 licenses and received a further 50 applications. This was boosted
further by a Trade Show held in London in the same year. By 1874 the license was free to bottle
manufacturers as long as they purchased the marbles, sealing rings and used his groove tool, and the
mineral water firms they traded with had already bought a license to use his bottle.
In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore, Maryland
machine shop operator. It was the first bottle top to successfully keep the bubbles in the bottle. In
1899, the first patent was issued for a glass-blowing machine for the automatic production of glass
bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-blowing
machine was in operation. It was first operated by the inventor, Michael Owens, an employee of
10 | P a g e
Libby Glass Company. Within a few years, glass bottle production increased from 1,400 bottles a
In America, soda fountains were initially more popular, and many Americans would frequent the
soda fountain daily. Beginning in 1806, Yale University chemistry professor Benjamin Silliman sold
soda waters in New Haven, Connecticut. He used a Nooth apparatus to produce his waters.
Businessmen in Philadelphia and New York City also began selling soda water in the early 19th
century. In the 1830s, John Matthews of New York City and John Lippincott of Philadelphia began
manufacturing soda fountains. Both men were successful and built large factories for fabricating
fountains. Due to problems in the U.S. glass industry, bottled drinks remained a small portion of the
market throughout much of the 19th century. (However, they were known in England. In The Tenant
of Wildfell Hall, published in 1848, the caddish Huntingdon, recovering from months of debauchery,
wakes at noon and gulps a bottle of soda-water. In the early 20th century, sales of bottled soda
increased exponentially, and in the second half of the 20th century, canned soft drinks became an
During the 1920s, "Home-Paks" were invented. "Home-Paks" are the familiar six-pack cartons made
from cardboard. Vending machines also began to appear in the 1920s. Since then, soft drink vending
machines have become increasingly popular. Both hot and cold drinks are sold in these self-service
11 | P a g e
Consumption
Per capita consumption of soda varies considerably around the world. As of 2014, the top consuming
countries per capita were Argentina, the United States, Chile, and Mexico. Developed countries in
Europe and elsewhere in the Americas had considerably lower consumption. Annual average
consumption in the United States, at 153.5 liters, was about twice that in the United Kingdom (77.7)
or Canada (85.3). From 2009 to 2014 consumption dropped over 4% per year in Greece, Romania,
Portugal, and Croatia (putting these countries at between 34.7 and 51.0 liters per year). Over the
same period, consumption grew over 20% per year in three countries, resulting in per-capita
consumption of 19.1 liters in Cameroon, 43.9 liters in Georgia, and 10.0 liters in Vietnam.[22]
Production
Soft drinks are made by mixing dry or fresh ingredients with water. Production of soft drinks can be
done at factories or at home. Soft drinks can be made at home by mixing a syrup or dry ingredients
with carbonated water, or by lacto-fermentation. Syrups are commercially sold by companies such as
Soda-Club; dry ingredients are often sold in pouches, in a style of the popular U.S. drink mix Kool-
Aid. Carbonated water is made using a soda siphon or a home carbonation system or by dropping dry
ice into water. Food-grade carbon dioxide, used for carbonating drinks, often comes from ammonia
plants.[23]
Drinks like ginger ale and root beer are often brewed using yeast to cause carbonation.
Of most importance is that the ingredient meets the agreed specification on all major parameters.
This is not only the functional parameter (in other words, the level of the major constituent), but the
level of impurities, the microbiological status, and physical parameters such as color, particle size,
etc.
12 | P a g e
Some soft drinks contain measurable amounts of alcohol. In some older preparations, this resulted
from natural fermentation used to build the carbonation. In the United States, soft drinks (as well as
other products such as non-alcoholic beer) are allowed by law to contain up to 0.5% alcohol by
volume. Modern drinks introduce carbon dioxide for carbonation, but there is some speculation that
alcohol might result from fermentation of sugars in a non-sterile environment. A small amount of
alcohol is introduced in some soft drinks where alcohol is used in the preparation of the flavoring
consumption along with the vitamin D, vitamin B6, vitamin B12, calcium, protein and other
may be a risk in consuming too much.[57] Phosphorus and calcium are used in the body to
create calcium-phosphate, which is the main component of bone. However, the combination
of too much phosphorus with too little calcium in the body can lead to a degeneration of bone
consumption of carbonated drinks and bone mineral density in young girls, which places
One hypothesis to explain this relationship is that the phosphoric acid contained in some soft
drinks (colas) displaces calcium from the bones, lowering bone density of the skeleton and
by Dr. Robert Heaney suggested that the net effect of carbonated soft drinks, (including
colas, which use phosphoric acid as the acidulant) on calcium excretion in urine was
13 | P a g e
negligible. Heaney concluded that carbonated soft drinks, which do not contain the nutrients
needed for bone health, may displace other foods which do, and that the real issue is that
people who drink a lot of soft drinks also tend to have an overall diet that is low in
calcium.[59]
A 2006 study of several thousand men and women, found that women who regularly drank
cola-based sodas (three or more a day) had significantly lower bone mineral density (BMD)
of ≈4 % in the hip than those who didn't, even though researchers controlled for important
factors like calcium and vitamin D intake. The study also found that women who drank non-
cola soft drinks didn't appear to have lower BMD and that BMD of women drinking
decaffeinated cola wasn't as low as women drinking caffeinated cola sodas. The study found
that the effect of regular consumption of cola sodas was not significant on men's BMD.[60]
In the 1950s and 1960s there were attempts in France and Japan to ban the sale of Coca-Cola
as dangerous since phosphates can block calcium absorption. However, these were
unsuccessful as the amounts of phosphate were shown to be too small to have a significant
effect.
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INTRODUCTION
OF
COMPANY
15 | P a g e
2. INTRODUCTION OF COMPANY
If we Indians recall our memory there was a time when one was asked for a soft
drink, the brand that comes and gave a knock on our mind was Coca-Cola. Coca-Cola, the
word most admired trademark has maintained its special a sense of belongingness to India,
which had resulted some sort of its monopoly throughout the Indian soft drink market. It has
been said that the internal environment of the industry has been greatly effected from its
internal environment. The same thing was also happen with this famous company. When
the Government policy were in introduce and forced this MNC's to go outside from the India
market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that
time in the country's soft drinks market. How ever after a gap of 17 years, the Coca-cola
16 | P a g e
has reappeared in the soft drinks market of India, by making itself more strong and
In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon
10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft
drinks market. Due to a manifold increase in the demand of soft drinks large number of
In India two major companies engaged in soft drinks market are Pepsi and Coca-
Cola. While RC cola is still a novice in the Indian Market, although it being the world oldest
costing less to manufacturers and with a less satisfactory taste than coke.
During the Second World War Pepsi and Coke, both of them enjoyed a huge sale.
After the war the Pepsi sales started to fall relatively to Coke. The factors which were
responsible for the decline in Pepsi sales were poor image, poor task force, poor quality
It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola
was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling
facility of Coca-Cola in India was switched on. The Indian people welcomed the come back
of their most loved cola in the country with great enthusiasm and vigor.
17 | P a g e
Coca-Cola market its relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-
In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the
RED, IN INDIA:-
Hindustan Coca Cola Beverages Pvt.Ltd., India division under Eurasia Operating Group has been
working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola Company believes that its
success depends on their ability to connect with consumers by providing them with a wide variety of
choices to meet their desires, needs and lifestyles choices. Company success further depends on the
COMPANY GOAL:-
Company goal is to use the Company’s asset –company brands, financial strength, unrivaled
distribution system, global reach and talent and strong commitment of our management and
associates-to become more competitive and to accelerate growth in manner that creates value for our
Coca Cola Company manufactures and sells beverage concerates, sometimes referred to as
“beverages bases” and syrups, including fountain syrups, and finished beverages.
18 | P a g e
“THANDA MATLAB, COCA COLA”
Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga; Tenn where
its first bottling plant was started 100 year ago by two men struck one of the most lucrative business
deals in US history. Joseph Whitehead and Benjamin Thomas offered Coca-Cola Company owner
Asia Candler a dollar for the right to bottle soft drinks in 1899. Today I billion soft drinks are sold
Candler had purchase what would become the Cola Company for $2,300 eight years earlier from
John Pemberton, an Atlanta Phamacist who astonished the world. Candler thought the bottling
Venture would never succeed, but he signed the contract with White Head And Thomas and way,
"and the rest is history", Bob Lovell, vice president of marketing for Coca-Cola bottling company,
Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a Pineapple beverages, from
bottles while he was stationed in Cuba during Spanish American War. When he returned to
Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which was then sold only as a
fountain beverage.
19 | P a g e
"It occurred to him that Coca-Cola in bottles would be very popular", Lovell said, "Mr. Candler did
not see any future in it because the containers were not sound, but that's how it all came about.
"Thomas and Whitehead promised to pay one dollar for the right to bottle Coca-Cola, but legend has
THE IMAGE:-
The image is communicated all around the world in advertisement on media such as newspaper,
However, image is much than just advertising every person working within the coca-cola system is
part of the image whether one is involved in creating its advertising, making it's quality products, or
selling, merchandizing and distributing its beverage their hard work and attitude will say something
Raw Material
Coca-Cola Company
Bottler
Customer
Consumer
20 | P a g e
In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon 10% and Orange
20%. There appears to be a concentrated rush to bag a share in the soft drinks market. Due to a
manifold increase in the demand of soft drinks large number of company has entered into this
Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in Atlanta, Georgia. The
drink was sold ad refreshing elixir at the fountain counter of Jacob's Pharmacy of which Dr. John
Pemberton was part owner, unaware that the pharmacist had given birth to a caramel colored syrup
which is now the chief ingredient of the worlds favorite drink. Today the white-on-red flow of Coca-
Cola is familiar sight in more then 195 countries. The syrup combines with the carbonate water to
fuel a $ 16.2 billion corporation that has captured a 46% Slice of the global soft drinks market. The
company estimates that the drink is served more than 773 million times every day and if all Coke
ever produced were filed in standard bottles and placed end to end it would wrap around the equator
The story of Coca-Cola is a story of a drink and its charm with the consumer. The of ecstasy and
again that the drink has caused to those dedicated to its growth Pemberton first managed to sell and
average of 9 drinks per day, though a shop called Jacob's pharmacy, in 1891, Candler bought Coca-
cola company with four companies he formed the coca-cola company with the initial stock of
$100,000. Coca-Cola was registered at the US patent office in 1893, and began selling at soda
21 | P a g e
fountains for 5 cents a glass of therapeutic refreshment 1894, I got into bottles, courtesy a candy
Five years later; the drink was being bottled on a regular basis under a region wise franchising
system; and its first competitor Pepsi cola, Coca-Cola's first bottling plant opened in Chatanooga,
Tennessee followed by another in Atlanta in 1900. The unique taste of cola was an outstanding
success. Over the next two decade the number of plants crossed 1000. In a bit to difference the
prodect, the company adopted 6.5 ounce, pale green countor bottle designed by the root glass
The company broadened its horizons when Robert Woodruff the son of a banker who acquired to
Company for $25 million in 1919, assumed charge in 1923. He began by ungrading bottling
operations, brought in innovations like a six-bottle carry home carton, and gear up advertising
support. It was under Wood Ruff that the brand. Known affectionately as coke by now associated it
self with sportive events. By the early 1940's the brand was selling as the "real thing" to set it self
As a time went by the company brought out some new aerated drinks. The first one "Fanta" appeared
Its birth was an accident, the company's German name is an attempt to produce Coca-Cola without
some key ingredients, turned out into an orange flavored drink instead. its strategists who feared the
dependence on just one put a cap on growth welcomed it. While Fanta was being rolled out the
company bought minute made cosrp. Which in 1967 was combined with Duncan foods to pave way
for the Coca-Cola foods. Several beverages followed the most notable being 'sprite', a lemon drink
making division. Robert C Goizueta, Cuban born 27 years veteran took over as the Coca-Cola unlike
Pepsi company depended on a single brand. The best insurance policy that he figured was to let coke
evolve to the summer slacking it with variants, even reinventing if needed. In 1982, the company
launched what is now considered among the world's most successful brand extensions 'Diet Coke',
under the leadership of Sergio Zyman, the head of us marketing. The idea was to retain the loyalty
for the health conscious drinker who loved the taste but hated the calories. After this it came out with
cafeeine free versions of its main drinks. yet in the US the company kept losing ground to Pepsi.
zyman, a former Pepsi marketer argued that the correct strategy was to replace 98 year old with
better tasting cola, label it as "New Coke" and blare the news which is exactly what the company did
more a decode age in 1985. But when placed on the shelves it did not budge. On wide spread protest
The company has about 100 brands in its portfolio but coke, Fanta and sprite account for most of its
sales. In 1994, the real thing's coke sold over 52.5 billion liters. For the taste of it diet coke along
with Coca-Cola light sold 8.5 billion liters, which makes it the world's two top non cola drinks sold
over 6.5 billion liters each. Which sprite aimed at the independent youngster two does not care what
as others drink (the as line "obey you're a thrust"). In 1993, Coca-Cola reentered India after a 16
years ling exile, four years Pepsi made its debut India. While Coke plays on brand nostalgia. Pepsi
address the young crowd, which unlike a in America is a dominate ort if the population here.
23 | P a g e
THE COCA-COLA COMPANY:-
The Coca - Cola Company is the world's largest beverage company. Along with Coca - Cola,
recognized as the world's best - known brand, The Coca - Cola Company markets four of the world's
top five soft drink brands, including diet Coke, Fanta and Sprite, and a wide range of other
beverages, including diet and light soft drinks, waters, juices and juice drinks, teas, coffees and
sports drinks. Though the world's largest distribution system, consumers in more than 200 countries
enjoy The Coca - Cola Company's products at a rate exceeding 1 billion servings each day. For more
information about the Coca - Cola Company, please visit our website at http: // www.coca-
cola.com/.
This press release may contain statements, estimates or projections that constitute "forward - looking
statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect,"
"intend," "estimate," "anticipate," "Project," "will" and similar expressions identify forward - looking
statements, which generally are not historical in nature. Forward - looking statements are subject to
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certain risks and uncertainties that could cause actual results to differ materially from The Coca -
These risks include, but are not limited to, changes in economic and political conditions, changes in
the non - alcoholic beverages business environment, including actions of competitors and changes in
consumer preferences; product boycotts; foreign currency and interest rate fluctuations; adverse
weather conditions; the effectiveness of our advertising and marketing programs; fluctuations in the
cost and availability of raw materials; our ability to achieve earnings forecasts; regulatory and legal
changes; our ability to penetrate developing and emerging markets; litigation uncertainties; and other
risks discussed in our Company's filings with the Securities and Exchange Commission (the "SEC"),
including our Annual Report on Form 10-K, which filings are available from the SEC. You should
not place undue reliance on forward - looking statements, which speak only as of the date they are
made. The Coca Cola Company undertakes on obligation to publicly update or revise any forward
- looking statements.
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ORGANIZATIONAL STRUCTURE
CHAIRMAN
PRESIDENT
VICE PRESIDENT
R.G.M.
A.G.M.
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Where,
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PRODUCT PROFILE OF COCA COLA:-
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THE FUTURE OF COCA-COLA:-
While dong business overseas offers Coke wonderful growth opportunities it also has its own
disadvantages. The economic slowdown in various overseas markets and the strong dollar had their
impact on Coca-Cola revenues and bottom line in 1999. But the company optimistic about the future.
Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola Company says, "This past year
1999 has been a challenging period for the Coca-Cola Company as economic environment became
more uncertain in the later part of 1999, we strongly believe that our fundamental opportunities for
As long as maximization of share holder wealth remain coke's focus for its future4 is assured
Goizueta had stated and proven to the world that focus on shareholder wealth does more good to the
company than focus on revenues and it is not hat coke does not enjoy volumes for it is world's No. 1
soft drink manufacture. It is not content with this title and is aiming at higher volumes year after
year. Surely coke will continue to grow. Point on Roberto had reduced the company basically to its
trademark and the returns are so astronomical as to be off the boards. It just absolutely added a jet
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COKE'S BOTTLING STRATEGIES:-
In the soft drink business the bottlers are responsible significant extent for ensuring the availability
of the products. Bottlers are supplied with concentrate to which they add aerated water and bother
ingredients before packing and sealing either cans or bottles. Bottlers play a strategic role in the
success of soft drinks companies and this was not far from Goiueta's mind.
In 1986 the company merged some of its company owned bottling operations with two large
ownership groups that had been put up for sale. All these bottling activities were combined to from
its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling operations. The Coca-Cola
Company took 49 percent equity stake in Coca-Cola Enterprises enabling it to retain its own balance
sheet.
MARKET PLACE:-
More than a billion times everyday, thirsty people around the world reach for Coca-Cola products for
refreshment. They deserve the highest quality-every time. Our promise to deliver that quality is the
most important promise we make. And it involves a worldwide, yet distinctively local, network of
bottling partners, suppliers, distributors and retailers whose success is paramount to our own. Our
investment in local communities in over 200 countries totals billions of dollars in jobs, facilities,
marketing, the purchase of local goods and services, ands local business partnerships, always and
everywhere, we pursue continuous innovation in the products we offer, the processes we use to make
them, the packages we develop and the ways we bring them to market.
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COMPETITOR:-
The biggest and perhaps the only serious for the coca-cola worldwide has an already been
Pepsi. In India, as per as the Cola segment is concerned the with the biggest competition to coke
comes from its brands of Pepsi viz. Pepsi and Mirinda. Thums-up, which was the leading brand of
Parley product, was acquired by Coca-Cola just over a year ago to bolster its market share in India.
Today, Thums-up along with coke, the leading brand of the Coca-Cola Company, other still
competition to Pepsi, which despite this stiff competition is still by far the single most popular Cola
drink in India
With both the companies being backed fully by the parent concerns based in the united state,
the fight to become the dominant player in the huge Indian Soft drink market continues unabated.
Aggressive ad campaign's, sale-promotion, schemes for retailers are just some of the strategies being
adopted by the two companies to outwit each other and grab and large share of the market.
In the Cola segment, which occupies by far the largest chunk of the soft drink market in
India, the market share ofCoke is 60%while the market share of Thums-up is 32.16%. The market
share of Coke in this Cola Segment is 27.84%. The remaining market share is occupied by the other
So Coca-Cola with its two brand clubbed together i.e. Thums-up + Coke occupies a
combined market share of 60% (32.16% + 27.84%) which is just higher than the market share
\
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The market share for the Cola segment of different in India is given in Graph below:
The fight between the Rs. 1,000 Crore Pepsi co. India. Pepsi and Coca-Cola India, The fully
owned subsidiary of the $ 18.55 Billion Atlanta based "The Coca-Cola' company to become India's
No. 1 player seems likely to continue unabated over the next four years".
PEPSI PROFILE:-
Pepsi Co. Inc. was founded in the year 1965. Major products of the new company are Pepsi Cola.
Diet Pepsi and Mountain Dew. Pepsi entered the Indian market in 1992 and now is the market leader
with a market share of 26.5 percent in the cola segment. Pepsi is in between the two of it's closet
competitors as far as marketing strategies are concerned. Pepsi is an international drink with Indian
imagery in it's communication Traditional focus of Pepsi has been on the early teenager with a
Pepsi is by far the more aggressive player in the market. With in your face advertising continuous
event marketing targeting the new generation and eye catching merchandising. It's got its selling
The company has always been innovating it's ad campaigns which has helped the company to get top
of the mind recall. From "The choice of the new generation" to the "Freedom" campaign the
company has been able to Indianise the brand. With the help of promotional schemes Pepsi has
managed to keep the brand alive and has not let it become old. During 1995 the total ad spent by the
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company was Rs. 6.98 crore only on television Pepsi has set aside Rs. 8 crore for its advertising
pepsi
pepsi Diet mirinda
mirinda lime 7 up
Slice
Coke diet
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Clear lime Sprite 7up
COMPETITIVE AREA:-
The soft drink market all over the world has been witnessing a neck to neck battle between the two
major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers are trying hard to
have to major chunk of the pie of carbonated soft drink market. Both the players are spending their
Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft drink markets
in the world and enjoying leadership in terms of market share. But the Coca-Cola people are finding
it hard to keep away Pepsi, which has been narrowing the gaps regularly. The two are posing threats
to each other in every nook and corner of the world. While Coca-Cola has been earning most of its
bread and butter through beverage sales, Pepsi has a multi products portfolio with some portion from
The two warriors are face to once again here in India with different strategies and tactics to attack the
rival. Coca-Cola is focusing upon the joint ventures with the existing bottlers (FOBO) franchise
owned bottling operations to enhance its control on manufacturing and marketing of its products
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Countering it Pepsi has taken the battle its own hands by floating as investment of $ 95 billion to set
Pepsi Company. India holdings, as subsidiary for (COBO) Company owned bottling operations.
Both the companies are following different path to reach the same destiny i.e. to fetch the bigger
a huge potential market, as per capita consumption here is a mere 3 serving annually against the
world average of 80. Therefore, they are putting in their best efforts to woo the Indian consumer
who has to work for 1.5 hours to buy a bottle of soft drink. In comparison to the international norms
minutes, a major hurdle to cross over for both the athletes for getting No. 1 position comparison tot
he inter. Coca-Cola is well set with its 53 bottling sites through out the country giving tit an edge
over competition by processing a well-built bottling and distribution set-up. On the other hand,
Pepsi, with two more years in India, has been able to set an image of a winner in India and has been
able to get the pulse of the India soft drink market. The soft drink giants are leaving on stone
Coca-Cola has been penetrating the market through its wide product range with a determination to
change consumption pattern of soft drink in India. Firstly, they upgraded the whole industry by
introduction 300 ml bottles, which in turn had given the industry a booming growth of 20% as
compared to the earlier 5%. They want to develop a coca culture here and are working on a strategy
to offer soft drink in every possible package. In Coca-Cola camp, the idea of competition has not
come from Pepsi, but from the other beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is
quite aggressive in its approach to Indian Consumer. They are desperately working on the strategy to
be winners in the hot cola war between two big barons. According to Pepsi philosophy, it's the
madness that encourages executive to think, to conjure up those creative tactics to knock the fizz out
their competition. Pepsi had plumbed a large on the visibility of its blue red and white logo. They
have been going with aggressive marketing by putting Sachin Tendulkar, Akshay Kumar and now
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Shahrukh Khan in their advertisement to endorse their brand, the role models for its targeted
consumer the teenagers. They have increased the fizz in the market place by
introducing the dispensers called Fountain Pepsi and has been enjoying a lead over its rival there.
Coca-Cola on the other hand, has been working on the saying slow and steady wins the race's side by
retailing to every more of its competitor. They have procured the shield of Thums-Up with a
Countering Pepsi's international commercial that used two chimpanzees to cock a snoop at coke,
Thums-up come with the ad line, Don't be Bandar, taste the Thunder. Also Thums-Up has been
positioned now very near to that young image of Pepsi and giving it a though time.
These cool merchants have put everything on fire. It Coke got the status of the official drink of
wills. World Cup, Pepsi blushed as nothing official about it. As Thums-Up projected as 'Saaree
Jahan Se Achcha' Pepsi was passionate enough with 'Freedom to be' and now the "Yeh Dil Mange
More" when Thums-Up came with Thunder Blast, the other offered 'Pepsi Stuff Card'. If Red is
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MAIN COMPETITORS
Coca-Cola Pepsi
Total Investment in India Rs. 250 Crores Rs. 500 Crores
New Investments Rs. 2400 Crores Rs. 300 Crores
Number of Employee 140 2400
Number of owned bottling Plants 9 11
Number of Franchisees 54 15
Number of Fountain 1500 4000
Total Investment by bottlers Rs. 125 Crores Nil
New Plants Planned Nil 6
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(Year of 2016-17 )
Overall volume of Coca-Cola products have increased by 40% whereas the industry growth rate is
20%. Last year total sale of soft drink Industry in India was approximately 170 million crates. Out of
these around 60% was of Cola and other 40% was of non-Cola Brands.
Company.
MARKETING MIX:-
Prof. Neil H Barden defines marketing mix as 'the appointment of effort, the combination, the
designing and integration of the elements of the marketing into a programme of mix which will best
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objective of in
1. By utilizing the important forces emanating from the marketing operation of an enterprise.
The marketing mix denotes a combination of various elements which in their totally
constitute affirms marketing system. McCarthy popularized a four factor classification of the se tools
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PRODUCTS:-
Product variety
Quality
Design product
Brand name
Feature
Packaging
Size service
Warranties
Returns
PRICE:-
List Price
Discounts
Allowances
Payment period
Credit teams
PLACE:-
Channels
Coverage
Place assessments
Locations
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Inventory
Transports
PROMOTION:-
Sales promotion
Advertisement
Sales Forces
Public relations
Direct marketing
4 Ps 4 Cs
PRICE WANTS
PROMOTION CUSTOMER
CONVENIENCE
COMMUNICATION
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DISTRIBUTION IN THE COCA-COLA SYSTEM:-
One of the value of the coca-cola system is presence that coca-cola should exist
everywhere. In the words of former CEO-India operations - Richard Nichoilas, "Our goal
is to have coke available within an arm's reach of desire". To fulfill this gool, coca-cola
not only produces products, but also has an effective systems to distribute them all over
India.
DISTRIBUTION:-
Distribution of Coke's products includes the activities of sales, delivery merchandizing and
local accounts management. These are two major types of distribution systems.
In direct distribution, the bottler partner direct control over the activities of sales,
delivery, merchandizing and local account management.
In indirect distribution, an organization which is not a part of the coca-cola system
has control of one or more of the distribution elements (Sales, Merchandizing and local
accounts managements).
In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and Local
Accounts Management) are performed by the same persons.
In advanced sales, sales and delivery are performed by different people within the coco-cola system.
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Difference between a Customer and a Consumers.
A consumer is some one who drinks coca-cola products.
A customer is a business location which sells or serves coca-cola products to consumers.
MERCHANDIZING:-
One the products are delivered to the customer's they are promoted at the point-of-purchase to
maximize the company's sales opportunities, merchandizing involves looking at the presentation of
the products through the eyes of the consumers. It is an on-going process that help the company
present its products properly to the consumers in the market place for instance, is the display
attractive? Are the product neatly organized.
Coca-Cola presents its products for sale in four different ways. They are as follows:
Secondary Display
Coolers
Vending Machines
Post Mix / Pre Mix
Just after independence, the Maharaja of Patiala oversaw his coca-Cola-Cola hoarding from his huge,
ornate palace, Coca-Cola export representative Frank Harrold, was awed by the Maharaja's opulent
life style. In 1993 after Coca-Cola returned to India after a 16 years absence (beorge Fernandes threw
the company out of the country in 1977 on the pre text that it had refuse to divalge its formula to
Indian officials), CEO of the Coca-Cola Company, Robesto boirueta "Salivated over a virtually
untapped market of 840 million people".
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PROMOTION : THE COCA-COLA WAY
Grocery shopping
Other shopping & services
Eating and drinking Entertainment/ Recreation. Leisure
Travel / Transportation/ Hospitality
Educational
At Work
The 3A's:-
The strategy for reaching in creasing numbers of consumers in India is based on the belief that
consumers will buy our products it they are Available, Affordable and Acceptable.
To provide quality customer services, and caring about the quality of performance in respective
jobs.
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The 3A's is Coca-Cola underlying strategy for meeting its goal to reach increasing numbers of
consumer's. How does coke position its limited resources to help meet its good. Let us explore the
specific ways in which the Coca-Cola system addresses each of the 3A's.
AVAILABILITY:-
Some of the way sin which the Coca-Cola Company hopes to increase availability of its product
AFFORDABILITY:-
The ways to address affordability include pricing decisions, as well as resource management. To
make its product available at a price affordable to the consumer. Continually processes more
ACCEPTABILITY:-
Making coca-Cola brand products the beverage choice for any occasion's depends on a variety of
strategies to reach the target audience. The common strategies adopted to effect acceptability were
though sponsorships, promotion youth market activities, community programs, and other activates.
Coca Cola mission, vision and values outline who they are, what they seek to achieve, and
how they want to achieve it. These provide a clear direction for the Company and help ensure that
MISSION:-
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To Refresh the World...in body, mind, and spirit.
VISION:-
clear goals: -
Partners: Nurturinga winning network of partners and building mutual loyalty. Profit: Maximizing
VALUES:-
Coca Cola is guided by shared Values that they will live by as a company and as individuals:
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Quality : “What we do, we do well”
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LITRETURE
REVIEW
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Creation of true value for the consumers and thereby addition of value to the society is
considered to be one of the most essential for business organizations to make the world a better
place was indicated by Brief and Bazerman (2003, 187). Bargh (2002) in his research supported
the fact that consumer research should strike a balance between how to influence consumers and
According to Simonson et al (2001), one of the most essential and influential areas within
consumer buying behavior is the consumer decision making process. In recent decades, during
the initial stages of the conception of the consumer buying behavior paradigm, various
consumer decision making models were proposed. However the theories proposed by the
researchers were not specific and considered a overall view of the consumer decision making
process. Erasmusm, Boshoff and Rosseau (2001) indicated the importance and need for a
specific, situation and product – oriented model in the study of the purchasing behavior of the
consumer. Moreover according to Wells (1993) the consumer investigating decisions needed in
the purchase of products such as car, house etc would directly make an effective contribution to
the consumer buying behavior knowledge. Therefore it is evident that an exploratory research
approach with the objective to study the consumer buying behavior would provide opportunities
It is evident from the past researches on consumer buying behavior that most of the real estate
study is based on neoclassical economic theory. The neoclassical theory states that the people
make rational economic decisions about renting or purchasing real estate as an attempt to
maximize their utility. Moreover the various theories of consumer buying behavior do not
emphasize nor examine the human influences on the real estate buyers. They concentrate more
on production orientation rather than consumer behavior orientation towards the approach for
marketing in the case of the consumer buying and decision – making process. The analysts
stratify real estate markets by property types that are defined by physical construction rather
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than consumer benefits. Physical attributes value property more than the consumer perception
factors such as space, atmosphere etc. However in some cases such as retail tenants and other
retail customers consider non – financial and perceptual factors rather than the financial aspects
The study of the consumer decision making process is more important in the case of
purchase of a high – involvement and emotionally charged products such as real estate and
house etc. Considering this type of consumer decision making process, the objective of the
research is threefold. Firstly to generate a conceptual consumer decision making process model
for purchase of house, secondly to study the various factors affecting the consumer buying
behavior process and finally to provide recommendations about the important factors affecting
Granhaug, Kleppe and Haukedal (1987) in their research explained that the decision – making
process involving long – term commitments of resources and affecting the budget available for
other goods and services is defined as the strategic decision making process.
In the views of Gibler and Nelson (2003), Mitchell (1999), Beatty and Smith (1987) this process
of strategic decision making endures a certain amount of risk mainly because it represents very
high financial decisions. Therefore this study concentrates on the various factors and its effect
in the case of this complex decision making process such as the process of consumer buying
The understanding and the prediction of the consumer perceptions is important in examining
and studying the consumer buying behavior and the decision making process. Thus the overall
purpose of this research is to understand the factors and influences on consumer buying
behavior in the real estate industry and also explains as to how the integration of the theories
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relating to consumer buying behavior improves the understanding the consumer perceptions in
According to Engel, Blackwell and Miniard (1995), consumer behavior is defined as the study if
individuals or groups in obtaining, using and disposing of products and services, including the
decision making process and the processes preceding the behaviors following it. Consumer
behavior can be explained on a macro level and the micro level views. The consumer behavior
involves in examining the reasons for the behaviors of the customers more than the examination
of the consumer actions. Considering the macro level, the interests of the marketers lie on the
demographic changes, society’s values, beliefs and practices that affect the way the customers
interact in the marketplace. In the micro level view, consumer behavior concentrates the human
behavior and the reasons behind the behavior. The application of these concepts to developing
and increasing the understanding of the consumer buying behavior in context to the real estate
Consumer choice is one of the key and important aspects of consumer behavior. The relevance
between consumer choice and the decision making process is also depicted in the theory of
utility in Economics. In general terms a customer buys a product or service to enjoy the benefits
derived from their usage. The theory of utility as described before focuses mainly on the results
and outcomes whereas the consumer behavior aspect emphasizes on the process of consumer
purchase. The impact of the situational factors on consumer behavior and the variance among
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the individuals faced with the same conditions are explicitly explained in the theories and
Considering the real estate industry, the type of purchase and leases are said to be of high
involvement goods. This type of high involvement goods demand a complex decision making
process during the purchase time. In accordance with the consumer buying behavior, decision
making process and the real estate industry, the three important conceptual models of the
decision making process are suggested by Nicosa (1966), Kollat and Blackell (1968) and
Howard and Sheth (1969). These models of consumer decision making process are in direct
relation with the situations of the real estate industry in Chennai. It is important to note that
these models provide a trace of the psychological state and the behavior of the customer from
the initial stage of the customer’s conception of the idea of the purchase of the land or house
through the entire purchasing process of the product to satisfy the demands of the consumer. A
detailed explanation of some of the key elements of the above mentioned conceptual models
and provided in the next section. The key elements are listed as information search, evaluation
Information Search
Initially when the consumer perceives to buy a real estate property they first seek for
information regarding the same. This information search involves both external and internal
customers, the effect of quantity of previous experience vary with the amount of type of search
undertaken especially in the case of the real estate industry (Baryla and Zumpano, 1995 and
Anglin, 1997). Considering the real estate industry, the search for information is supported
equally both by external and internal sources. On one hand, the previous knowledge acquired by
the customers reduces the search for new information and therefore they depend mostly on
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internal information. On the contrary this acquired knowledge encourages search for
information by supporting the efficient use of the newly acquired knowledge thereby leading to
In general, initially the customers check and obtain information by means of internal
information search (i.e.) they gather information which is they already possess (Bettman, 1979
and Punj 1987). In the views of Kiel and Layton, 1981 and Engel, Blackwell and Miniard, 1995,
there are certain factors which affect and have a negative impact the process of internal
information search. Such factors are depth of experience, length of time since the last purchase
of the land and the level of satisfaction with the previous purchases directly affects the
customer’s reliance on the internal information. This unreliability on internal information by the
customers in a long run leads to the search of external information for accessing the buying
decisions. Moreover since the consumers do not buy real estate very often, at several situations
they rarely depend on the past and existing internal knowledge to help in buying decisions,
In theory, there are basically two perspectives in relevance to the external information search.
They are economic and psychological/ information processing approaches. In the case of the
economic perspective, the consumer considers the search for external information on a cost/
benefit basis. This search is such that the consumer prolongs their search so long as the
marginal benefit of acquiring an additional piece of information exceeds the marginal cost.
cognitive process. The consumers go through in deciding phase to search for information,
gathering information phase and finally processing of the gathered information. In both the
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cases of external information search the impact of the consumer, product and situational
The external information search is very effective in the case of real estate industry because a
high budget investment and infrequent purchase depends more on the newly acquired
information. Moreover when the consumers feel more confident about their ability to access the
products they will directly tend to acquire more information regarding the same. Thus in the
views of Moorthy, Ratchford and Talular (1997) there clearly exists a inverted U relationship
The ways in which the consumers obtain information from the external sources are directly
from personal inspection, real estate brokers, newspapers, friends and relatives (Clark and
Smith, 1979; Talarchek, 1982 and National Association of Realtors, 1989). In case of the
customers with very little knowledge about the real estate such as first time homebuyers,
interurban movers mainly depend on the personal sources like friends, relatives and real estate
agents for external information (Kaynak, 1985). Meanwhile in the case of customers with
moderate knowledge on real estate issues, they perform extensive information in their own.
However consumers with extensive and elaborate knowledge on the real estate property buying
and selling need to perform a formal external search of information (National Association of
Realtors, 1989).
In the case of the external information search, there are some factors which affect the search
Experience
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Experience is the on of the most important factor of external information search. According to
Hempel, 1969 and Bettman and Sujan, 1987, experience plays an important role in consumer
buying decisions in the case of the real estate industry. The experienced customers know which
dimensions and considerations are important. These customers would be very clear and
consistent in the decision making process. However inexperienced buyers who not have much
external knowledge are more susceptible to the external influences such as the real estate agents
in analyzing the criteria they should consider in purchasing a property. It is important to note
that the type of information gather is important in the case of experience gained.
The beliefs and attitudes is another factor which affects the external information search by the
consumers. Some attitudes of the customers have a direct effect on the external information
search process. There are certain consumers who like the shopping process rather than the
external information search process is indicated by punj and Staelin, 1983; Beatty and Smith,
1987). In this case the consumers would like to visit the open houses and inspect the properties
before making any decisions. These types of consumers do not generally go in depth into
collecting information from the external sources. However on the contrary the consumers who
are satisfied with the amount of information obtained would probe into and collect information
from the various external sources rather than visiting the real estate properties.
Demographics
The external information search depends and is in relation to the demographic characteristics in
specified by Beatty and Smith (1987). According to Cole and Balasubramanian (1993), age is
one such demographic characteristic which is negatively related to the amount of external
information search. It is evident that greater the accumulated knowledge and experience for an
individual there is a reduced desire to search and obtain more information. Apart from age, in
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the view of Hempel (1969) the educational level of the consumers also plays an important role
in the external information search process. The consumers who are well educated seek for more
information due to the greater confidence and also their ability to search and the make effective
Situational constraints
Situational constraints as specified by Beatty and Smith (1987) are the quantity and availability
of information in the marketplace and also the time pressure on the consumer. These situation
constraints are also proved to affect the external information search of the consumer. The
quality and quantity of information from the external sources varies by market. According to
Cahill (1995), most of the consumers feel that they lack sufficient information from the external
sources to make a suitable and favorable decision while purchasing the property. Moreover
most of the consumers feel that they have less access to information especially after they have
decided to purchase the property. In regard to the uniformity of the access to the information, it
is found that the access to information is not uniform. Therefore this uneven access leads to
differing time period and differing intensity. This scenario makes the consumers more
dependent on the real estate agents in accordance with the information needed for the purchase
of the property. Since the agents are gatekeepers who are very biased in their suggestions, the
Time constraint is a part of the situational constraints which is of major consideration. This type
of constraint is directly associated with the real estate decisions. According to Baryla and
Zumpano (1995) time constraint reduces the level of the external information search by the
consumers. For example, considering a situation when a consumer is transferred to a new city in
regard with his work, this leaves him with less time to find a real estate property. This situation
reduces the extent of external information which the customer can obtain.
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Product determinants
Kiel and Layton (1981) in their research emphasize on product determinants as one of the
constraints which affect the consumer buying decisions. The variety, type of product features
and the price are some of the variables associated with the product determinants. In case of
products where the consumers perceive few differences between the available choices, they are
likely to make fewer comparisons and view fewer properties. Considering the innovative smart
houses requires the customers to acquire new information about the various features of the
house to analyze the beneficial factors. This analysis indeed requires a lot of information for
understanding and decision making. Moreover since the investment is high which leads to the
same amount of financial risk involved, the consumers look out for extensive information in
On the whole the information search involving the external and the internal sources is to
develop an information base for the consumers to analyze and make the right decisions when
they are purchasing the house. The following discussion describes the methods in which the
Evaluation of Alternatives
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The researches indicate that the information gathering process is a two stage sequence; first the
consumer gathers information about the broad – based environment and the location variables.
Secondly the consumer gathers information on the individual housing unit variable (Talarchek
1982 and Cahill 1994). Evaluation of alternatives is the next most important part in the
consumer decision making process. Searching the market and the environment for all the
possible alternatives is generally not feasible. The consumer should establish certain limitations
in case of evaluating the choices. In the views of Brown and Moore (1970), Speare, Goldstein
and Frew (1975) and Wiseman (1980) the decision making process for purchasing a real estate
property falls into three stages namely the decision to relocate, selection of the destination and
Engel, Blackwell and Miniard (1995) in their research indicated that the evoked set which the
reduced set of alternatives from which the consumer makes a decision regarding the purchasing
of the property is of major consideration in assessing the behavior of the consumer in the house
buyer market. In order to evaluate the alternatives from the evoked set to make the final
decision, the consumer should understand the salient attributes or the criteria which would
produce them the desired results. The real estate buyers in recent years conducted surveys
among the house buyers market to understand the salient features and its impact on the
customer behavior. But the varied list of salient features and the different rankings among
different markets lead way to complications in understanding the important salient features.
These scenarios lead to the continuous demand to better understand the local markets and the
salient features specific to consumers in each market (Kaynak and Meidan, 1980; Freiden and
Bible, 1982; DeLisle, 1984; Kaynak, 1985; Smith, Garbarino and Martini, 1992; and Bergsman,
1993).
According to Alpert (1971), if the salient features for the various choices in the evoked set are
equal then it is evident that it is not relevance in choosing among the alternatives. For example
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considering a situation in which the consumer believes that all the schools in the particular city
are good, then it may not be a deciding factor in purchasing the house even though the quality
of the school plays an important role. Therefore among the salient attributes, the attributes
which directly influence the evaluation of the alternatives and the decision over purchasing a
property is defined as the determinant attributes. Engel, Blackwell and Miniard (1995) in their
research has indicated that the determinant attributes are influenced by the situational
influences, similarity among the choices, motivation and also the knowledge regarding the
attributes.
The situation in which a decision is made or the situation in which a product will be used may
influence the attributes used in making the selection. For example, a homebuyer making the
purchase decision alone may use a different set of criteria than a buyer who is making the
decision as part of a family. A buyer may evaluate properties differently depending on whether
he is purchasing a house to occupy himself, furnish for his parents or rent to a tenant.
home in a trailer park and a houseboat moored at a dock) require the consumer to use criteria
that are more abstract to evaluate the alternatives (Johnson, 1984, 1989; Bettman and Sujan,
1987; and Corfman, 1991). The more similar the options, the more the consumer can rely on
concrete criteria and price to make comparisons. Thus, identifying and valuing the attributes
used by buyers in comparing tract housing is easier than those used by decision-makers
choosing custom homes. To further examine the means by which consumers make choices
among alternatives, the following section discusses various types of decision rules that
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Each consumer possesses a unique combination of mental and emotional characteristics. This
lifestyle.
Motivation
Motivation is a need arousing a drive for a consumer to take action in an attempt to reach a goal
(Engel, Blackwell and Miniard, 1995). Needs arise from the discrepancy between actual and
desired states of being. Wants refer to specific products that consumers believe will satisfy the
consideration of objective product attributes or benefits, whereas hedonic needs elicit subjective
responses, pleasures and aesthetic considerations (Holbrook and Hirschman, 1982; and Havlena
and Holbrook, 1986). It is common for consumers to try to fulfill both utilitarian and hedonic
Thus, when a couple has children, they may decide to buy a single-family house both to give the
family more room than found in an apartment and to satisfy an emotional desire to put down
roots. A valuation of property based on solely physical attributes may fail to capture the value
the buyer places on the ability of the property to satisfy nonfinancial and nonphysical needs
such as the desire for permanence. A more complete real estate valuation model will incorporate
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the psychological benefits the property is providing as well as the physical and financial
benefits.
As the discrepancy between the desired and actual state of being increases, a condition of
arousal called a drive is activated. Some of the more common drives that trigger a housing
income, preference for ownership, change in stage of family life cycle, family growth and
declining health (Brown and Moore, 1970; Lyon and Wood, 1977; Yee and Van Arsdol, 1977;
Hempel and Jain, 1978; Boehm and Mark, 1980; Clark and Onaka, 1983; McHugh, 1984; and
Litwak and Longino, 1987). Some real estate moves result from being pushed out of current
space, while others result from being pulled to a new location. The difference between the
current and potential situation encourages the resident to move (Clark, Knapp and White, 1996).
The decision to move in real estate is often portrayed via a stress model with stress specified
either as psychological or economic (Onaka and Clark, 1983). The models attempt to identify
the point at which the discrepancy between desired and actual states becomes great enough that
the perceived benefits of moving exceed the perceived costs (Brown and Moore, 1970; Speare,
1974; Huff and Clark, 1978; and Fokkema and Van Wissen, 1997).
Sometimes consumers are willing to endure a wide discrepancy between their desired and actual
real estate holdings because of emotional or psychological complications. For example, a retired
homeowner may prefer a house with a smaller yard, but does not want to give up the memories
associated with the family home. The consumer must overcome cumulative inertia as well as
psychological and social attachment to the house and neighborhood to make a change
(McGinnis, 1968).
Attitudes
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An attitude is an overall evaluation about something that combines cognitive beliefs, emotional
affects and behavioral intentions (Engel, Blackwell and Miniard, 1995). Attitudes may vary in
terms of strength, direction (positive or negative) and stability (Eagly and Chaiken, 1993). In
addition, not all attitudes are held with the same degree of confidence (Berger, 1992). Attitudes
based on direct experience with a product are usually held with more confidence than those
derived from indirect experience. Confidently held attitudes will usually be relied on more
heavily to guide behavior (Fazio and Zanna, 1978; and Berger, 1992). Consumers are more
likely to search for additional information before making a decision if they do not feel confident
in an attitude. Attitudes held with less confidence are also more susceptible to change. Given
this, it would be expected that experienced real estate consumers have developed stronger
attitudes about property types, locations and investment values than have first-time buyers.
They should be better able to articulate specific preferences and appear more logical in their real
estate decision-making processes because they would be acting in accordance with strongly held
beliefs. Relatively inexperienced buyers are likely to hold weaker opinions and be more easily
swayed by salespeople.
One of the most widely accepted frameworks of the relationship between attitudes and
consumer behavior is the Extended Fishbein model, also known as the Theory of Reasoned
Action (Ajzen and Fishbein, 1980). This model states that behavior is best predicted by
subjective norms that influence the behavior. Attitudes develop from beliefs about the
favorableness of a behavior and the strength of those beliefs. The model stresses subjective
perceptions and evaluations of behavioral consequences rather than objective measures. This is
an expansion from the original multi-attribute model that calculated a summated weighted
attitude score based on salient attributes, importance weights and beliefs about alternative
products. A compositional attitude model has been used by Lindberg, Garling and Montgomery
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(1988, 1989) in modeling housing preference and choice, finding that preferences may be best
predicted by a modified multi-attribute utility model, but choice may actually rely on the use of
heuristics.
Two consumers may use the same attributes to evaluate real estate choices, but have different
beliefs about property features and those features’ ability to satisfy their needs. One consumer
may believe that a two-story house design provides better separation of living and sleeping
areas while another may believe a one-story design is better. Thus, one consumer would value
the two-story house more highly and another would value the one-story house more highly even
though having separate living and sleeping quarters is an important attribute to both. Nelson and
housing market segments that were defined in terms of differences in the relative importance of
various criteria. Housing can be classified into major types through the clustering of alternatives
seen by most probable buyers as providing similar use, not necessarily the most physically
similar properties. In appraisal, this would lead to setting the value for adjustments on the
beliefs of similar consumers, such as through surveys of recent buyers (Kroll and Smith, 1988).
The physical and psychological factors that may affect the perception of product attributes by
the most probable buyers should also be considered (DeLisle, 1985). Whether a positive attitude
leads to an intention to purchase a product and, subsequently, to its actual purchase depends on
several factors. Attitudes and intentions are more likely to be good predictors of behavior when
they are measured relatively close to the time when the behavior is to occur, before situational
influences and unexpected events can have an impact (Cote, McCullough and Reilly, 1985).
Thus, the question ”Do you plan to move in the next three months?” will be a more accurate
predictor of behavior than ”Do you expect to move in the next three years?” The level of social
pressure present in the purchasing situation also affects whether consumer behavior will be
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consistent with attitudes (Ajzen and Fishbein, 1980). While a homebuyer may dislike yard
work, the social pressures to raise children in a house with a yard may interfere with the
Another limitation to acting in congruence with attitudes is whether a consumer has volitional
control, that is, whether the person can perform the behavior at will (Ajzen, 1991). A consumer
may want to purchase a property, but need a lender to agree to a mortgage. Discrimination may
also limit a consumer’s ability to purchase a preferred property. Thus, real estate researchers
must attempt to identify as many of the constraints facing the consumer as possible to
accurately understand and predict behavior. In addition, the researcher should ask not only
about a consumer’s attitude toward a product, but the consumer’s intention to purchase the
product. This takes into account the price and social pressures that might inhibit a consumer
Perception
Perception deals with recognizing, selecting, organizing and interpreting stimuli to make sense
of the world (Solomon, 1996). Consumers tend to use perceptual filtering whereby they only
pay attention to stimuli deemed relevant to existing needs, wants, beliefs and attitudes and
disregard the rest (Janiszewski, 1993). For example, when someone decides to move, the person
will suddenly notice properties that may have been on the market for weeks, whereas someone
who is not interested in moving may not even notice advertisements of properties for sale or
rent.
to perceive stimuli so that they do not conflict with basic attitudes, personality, motives or
aspirations. Thus, people often see and hear only that which is consistent with what they already
believe. For example, a potential buyer’s decision about a property is often made based on just
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the initial impression of the exterior of the building. If the initial impression is positive, the
potential buyer is likely to notice all the good features inside the building that reinforce his
initial perception and desire to like the property. Real estate agents have long been aware of the
importance of curb appeal, which is a prime example of the impact of cognitive consistency.
When a consumer pays attention to a stimulus, he or she attaches meaning to it. The exact
elaborated into beliefs and attitudes in relation to the consumer’s existing knowledge. Nasar
(1989) found that people use housing architectural style to infer the friendliness and status of its
residents. However, these interpretations varied with age, gender and social class.
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RESEARCH
METHODOLOGY
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3. RESEARCH METHODOLOGY
All the findings and conclusions are based on the survey done in the working area within time limit. I
tried to select a sample representative of the whole group during my job training. I have collected
data from 100 respondents for studying (Consumer Buying Behavior With reference to “Coca
PRIMARY OBJECTIVES:-
To find out to which extent merchandising assets are being used by the retailers in promoting
the product of coca-cola
To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi
To find out Market demand of Limca, Sprite vis-à-vis Mirinda-L and 7up
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SECONDARY OBJECTIVES:-
To find out Market comparison of all the available brands of the soft drinks in the market.
Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.
Research Approach:-
(1) Survey –Researcher contacted the retailers in the market place to gather the relevant
information.
Researcher began his survey with route riding, i.e. traveling along with the sales persons on his daily
trip to service the retailers. Researcher asked the retailers about their uses of Coca-cola merchandises
and try to Asses the market share of the Coca-cola’s different brands. This is very important point as
it gave me an inside view of the whole setup and further on during the planning of any of the
promotions. Researcher was aware of the limitations and strengths of the environment he would be
working in. The various methods and principles adopted are listed below:
Sample size:-
The number of sample is 100 from Kanpur city, which fulfills the requirement. Each respondent is
Sampling design:-
Convenience sampling is used for this study. Convenience sampling is used in exploratory research
where the researcher is interested in getting an inexpensive approximation of the truth. As the name
implies, the sample is selected because they are convenient. This non probability method is often
used during preliminary research efforts to get a gross estimate of the results, without incurring the
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Data collection method:-
For the accumulation of data the sources were primary and secondary data.
Primary Data:-
These data are raw material. They are the measurement observed and recorded as a part of original
study. They are original in character. The investigator or researcher directly collects this data. The
The Primary data was a detailed interview schedule with the help of a detailed questionnaire. The
samples were drawn purposively from various areas for the relevance of the study. Discussions were
held with the general, branch manager and executives of the company to design and execute the
research
Secondary Data:-
They are not originally drawn by the researcher as fresh data. These are collected by some other
person for this purpose and published. These types of data can be collected through various sources.
For this study the secondary data were collected from magazines ,journals , references and websites
Percentage analysis and statistical tools were used in the study. The statistical tools used for data
analysis are Rank correlation and hypothesis testing. ANOVA and t – test had applied for hypothesis
testing.
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Rank Correlation = ( )
If Rank Correlation is negative we can say that there is no correlation between the variable, if rank
correlation is positive we can say that there is a relation between the variable, if the Rank correlation
is less than.06 we can say that there is a low degree of relation between the variable, if rank
correlation greater than .06 we can say that there is high degree of relation between the variables and
if Rank Correlation is very nearer to 1 such as .99 we can say that there is very high degree of
It improves management’s ability to plan and control the sales of Coca Cola.
It will certainly help the strategies for survival and growth of the Company.
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3.7 LIMITATION OF THE REPORT:-
The finding of the survey will be strictly based on the response of the consumers, since it is
All the observation and recommendation will be made on the feedback obtained from the
survey.
The sample for the survey covered subscribers from India only.
The result islimited to the reliability of method of investigations, measurement and analysis
of data.
It is very small research, which may be insufficient to give the real picture.
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DATA ANALYSIS
AND
INTERPRETATION
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6. SWOT ANALYSIS
STRENGTHS:-
Coca Cola competitive strengths include leading brands with a high level of consumer acceptance, a
Coke Company has a good market reputation and a strong distribution network.
Coke is having a multi brand strategy ad is looking for a great volume opportunity in India.
Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains that
pioneering least.
WEAKNESS:-
Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal, with the second &
third calendar quarters accounting for highest sales volumes. The volume of sales in the beverages
It has not planned for setting up of any new plants where their competitor has planned to set
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OPPORTUNITY:-
Over the next several years Soft Drinks Industry’s growth is expected to out pace the growth of the
world economy. By 2010 is projected to eclipse $650 billion in total revenue. There is tremendous
opportunity to grow our sparkling beverages in both developed & emerging markets.
It can take the market very well with the new investment of Rs. 2400 corers.
It can give a big jerk to its major competitor Pepsi it can increase its number of fountain to a
sizeable amount.
THREATS:-
Coca Cola Company competes in the nonalcoholic beverages segment of the commercial beverages
industry. Based on internally available data & a variety of industry sources, Coca Cola believe that in
2007, worldwide sales of Company products accounted for approximately 10% of total worldwide
sales of nonalcoholic beverages products. The nonalcoholic beverages segment of the commercial
It has a continuous threat from Pepsi as well as various other local soft drinks.
Coke has a major market than Pepsi between the teenager as well as the student due to
There is no proper policy of distributing the merchandising assets of the company to the
retailers.
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LIMITATION:-
Despite the possible efforts in conducting the research, there were some unavoidable situations,
Considering the population, the sample taken for present study seems small and hence further
The sample taken for study was not of equal distribution so a comparative study cannot be
made.
Some of the retailers were non-cooperative in giving information, which hampered the actual
calculation.
Time available for research was very short so certain aspects have been overlooked.
Retailers were hesitant to provide the complete information due to fear of misuse of
information.
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FACTS
&
FINDINGS
76 | P a g e
4. FACTS& FINDINGS
It improves management’s ability to plan and control the sales of Coca Cola.
It will certainly help the strategies for survival and growth of the Company.
The finding of the survey will be strictly based on the response of the consumers, since it is
All the observation and recommendation will be made on the feedback obtained from the
survey.
The sample for the survey covered subscribers from India only.
The result islimited to the reliability of method of investigations, measurement and analysis
of data.
To find out to which extent merchandising assets are being used by the retailers in promoting
To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi
FIGURE 1
PBI
11%
Coca-Cola
14% PBI
Coca-Cola
Both
Both
5%
None
None
70%
Out of the sample size which has been covered only 11 % of the shops had Pepsi’s
GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.
14 % of the sample size had the GSB’s of both the major players of the soft drink
industry.
70% of the sample size didn’t have any of the GSB’s displayed.
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FIGURE 2
Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?
14% 13%
72%
72% of the shops having Pepsi GSB’s got the 1strank according to their visibility
status on the other hand only 14% of the retailers got the rank 2nd and 3rd each. This
shows that retailers who got the GSB as display material from the company are
using them satisfyingly.
49% of the shops having Coca-Cola GSB’s got the rank 1staccording to their visibility
status on the other hand 38% of the retailers got the rank2nd and only 13% of the
retailers got the rank 3rd. This shows that in comparison to Coca-Cola, Pepsico.’s
GSB are being used in more proper way.
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FIGURE 3
PBI
27%
PBI
Coca-Cola
Coca-Cola Both
None
8% None
62%
Both
3%
Out of the sample size which has been covered 27 % of the shops had Pepsi’s DPS
Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.
3 % of the sample size had the DPS Boards of both the major players of the soft
drink industry.
62% of the sample size didn’t have any of the DPS Boards displayed.
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*DPS-DISTRIBUTOR PROMOTINAL SIGNAGE*FIGURE 4
Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?
0% 12%
18%
18%
Rank 1 Rank 1
Rank 2 Rank 2
Rank 3 Rank 3
70%
82%
82% of the shops having Pepsico. DPS Boards got the rank 1staccording to their
visibility status on the other hand 18% of the retailers got the ranks2nd and nobody
got the 3rd. This shows that retailers who got the DPS Boards as display material
from the company are using them satisfyingly.
70% of the shops having Coca-Cola DPS Boards got the rank 1staccording to their
visibility status on the other hand 18% of the retailers got the rank2nd and only 12%
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s DPS Boards are being used in far more satisfyingly.
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FIGURE 5
27% 25%
37%
11%
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FIGURE 6
Ranking according to visibility - Pepsi ? Ranking according to visibility - Coca Cola ?
8% 0%
33%
24%
Rank 1 Rank 1
Rank 2 Rank 2
Rank 3 Rank 3
68% 67%
68% of the shops having Pepsico. refrigerators got the rank 1staccording to their
visibility status on the other hand only 24% of the retailers got the ranks2nd and 8%
of the retailers got the rank 3rd. This shows that retailers who got the refrigerators as
display material from the company are not using them satisfyingly.
Only 33% of the shops having Coca-Cola refrigerators got the rank 1staccording to
their visibility status on the other hand 67% of the retailers got the rank2nd and none
of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,
Pepsico.’s refrigerators are being used in far more proper way.
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FIGURE 7
PBI, 4260
4500
4000 Coca-Cola, 3368
3500
3000
PBI
2500
Coca-Cola
2000
1500
1000
500
0
PBI Coca-Cola
FIGURE 8
Coca-Cola
44% PBI
PBI Coca-Cola
56%
In the CocaCola’s refrigerators 56% of the Pepsi bottles were found. This shows
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that CocaCola’s refrigerators are not being used to optimum by the retailers in
promoting CocaCola’s products.
FIGURE 9
Shortage
Shortage
13%
Other
Problem of the Problem of the Empty
36%
Empty bottle bottle
17% Irregularity of the Salesman
Other
Irregularity of the
Salesman
34%
While giving the reasons for not using the Coca-Cola’s refrigerators 34% of the
retailers blame it to the lack of regular services from the company (irregularity of the
salesman), 17% of the retailers voted to the problem of the empty bottles of
Hindustan Beverages India, 13% voted for the shortage of the different packing.
Despite of all the above reasons a huge segment 36% blame it to different other
reasons for below optimum use of refrigerators.
Out of the 36% other major reasons low demand (33%) and lesser capacity
refrigerators (34%) got the maximum share.
Despite of all the above there are even major number of retailers who blame it to the
unfulfilled promises from the company professionals.
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FIGURE 10
100
90
80
70
60
50
40
30
20
10
0
0.5 to 2 3 to 5 6 to 10 More Than 10
FIGURE 11
6 to 10 3 to 5
28% 46%
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The sample size shows that maximum portion (around 46 %) of the retailers whose
sale are between 3 to 5 crates daily and only 8 % are the ones who are selling less
that two crates.
FIGURE 12
70
60
50
40
30
20
10
0
Schemes Gift Sharing / Draft Other
FIGURE 13
Gift
40%
Sharing / Draft
21%
Other
Schemes 6%
33%
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The sample size gives us the brief idea about the pattern of distribution of
merchandising assets by the companies. Most of the retailers (around 73%) are
getting the display material through different schemes or as the gifts.
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FIGURE 15
Market Demand of different packings of Soft-Drinks
200ml 2lt
30% 26% 2lt
1lt
500ml
1lt 300ml
7%
200ml
300ml 500ml
23% 14%
This gives us an indication, where the better prospects lies. In which particular type
of packing little innovation can do wonders. This provides us with an idea where we
should concentrate.
The sample size shows that there is huge demand of 2lt pack (26%) and 200ml
bottles (30%).
300ml bottles with 23% shares the 3rd position and 500ml. Shares the 4th position of
the demand total demand with the market demand of 14%
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FIGURE 16
500
400
Pepsi
300
Coca-Cola
200
Thums-up
100
S1
0
Pepsi Coca-Cola Thums-up
FIGURE 17
Thums-up
24%
Pepsi
39% Pepsi
Coca-Cola
Thums-up
Coca-Cola
37%
Sample size shows the comparison between the market demands of each of cola
drink.
Pepsi is on the top, shares the demand of 39% from the market.
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Coca-Cola seconds with the shares of the demand of 39% from the market beating
Thumps up with the remaining 24%
FIGURE 18
290
280
270 Fanta, 285
260 Mirinda-O, 260
250 S1
240
Mirinda-O Fanta
FIGURE 19
Mirinda-O
48%
Fanta
52%
Sample size shows the comparison between the market demands of each of Orange
drink.
Mirinda and Fanta are almost head to head with 48% and 52% market demand.
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Though Fanta is having 4% more share than Mirinda Orange.
OPERATING GROUP:-
The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating Groups:
Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling Investments.
Certain prior year amounts have been reclassified to conform to the current year presentation.
5) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB) Interpretation No.
48, "Accounting for Uncertainty in Income Taxes" and recorded an approximate $65 million increase
in accrued income taxes in their consolidated balance sheet for unrecognized tax benefits, which was
accounted for as a cumulative effect adjustment to the January 1, 2007 balance of reinvested
earnings.
6) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS) No.158,
"Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans -- an
7) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure Guidance
for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004" in
2004. FSP No. 109-2 allowed the Company to record the tax expense associated with the repatriation
of foreign earnings in 2005 when the previously unremitted foreign earnings were actually
repatriated.
8) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest Entities,"
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RECOMMENDATIONS
&
SUGGESTION
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8. RECOMMENDATIONS& SUGGESTIONS
1. Company should do something to meet its demand in the market. Because there is an
acute shortage of Coca-Cola 2Lts party pack and tin pack because of the shortage, Coca-
Cola is not only loosing the present market share but also providing way to the rivals. For
this either plant size can be expanded or some more production equipments can be
installed.
2. Since the market capacity is huge salesman needs time at every retailer to satisfy him and
tell him about the different products, packaging, schemes etc. it’s quite difficult for him to
visit every shop on his route everyday. Therefore, there is necessity to divide his route into
3. Sometimes salesman for different routes keeps on changing very frequently (in a very
short period). This should be prohibited because every sales man needs time to get
adjusted to a particular route and even to know all the shops on the route.
4. Salesman is working for 15 to 16 hours regularly during the peak season at very low
reimbursement, which may sometimes kill his interest. Therefore there is a need of fixing
up his working hours. Delivery van should be ready when he comes into the depot in the
morning. There should be different labour for shipping or de-shipping the delivery vans.
5. Company professions must not make the false promises about the merchandising assets
with the retailers. These retailers must get the proper information and guidance about the
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generated.
6. Though the GSB’s and DPS Boards are being used by the retailers satisfyingly but still
8. As maximum number of retailers are selling around 3 to 5 crates daily. Our schemes
should be revolving around this percentage only. And while formatting the different
9. For this salesman can be provided with some kind of guidance/ training, so that they can
clear the queries of the customers about the different schemes/ proposals
10. Retailer benefit schemes, which the company launches time by time during the whole
11. Customers can be informed about the schemes through the broachers.
12. Broachers can be distributed to all the retailers for the schemes that are being launched
once in a year. And for the daily schemes which get change on daily bases and which
depends on the stock availability providing details about the day's schemes/ after a paper/
pamphlet on different products can be sticked to the delivery van signed by the ASM or
anybody authorized. So that every retailer if needed/ required can verify himself about the
daily schemes.
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13. Company professionals should visit the field more regularly and they must try to visit
14. A proper trust and relationship building process is required with the retailers, which need
to be worked on.
15. Above figures shows the market demand comparison between the different products of all
the flavors available in the market. Which show that we can gain market share through
Coca-Cola’s Limca and Sprite. So we should concentrate more in completing the market
16. Above figures shows the market demand comparison between the different packs
available in the market. Which show that we can gain market share through concentrating
more on 2Lt. and 200ml. pickings. So we should concentrate more in completing the
17. Other products and packing like Sprite and 300 ml. Whose demand is going down require
18. Most of the respondents wants to increase the flavours of the Coca Cola Ionized beverages
as they have been consuming the same flavor over a period of time.
19. Promotion and promotional schemes need to be propagated in the rural areas so as to tap
the unsaid and unclaimed potential of the rural life and habitat.
20. Well, I would advise the Company to reduce the price affixed to each and very of
beverages so that all the classes and categories of the people can have the pleasure of
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drinking the Coca Cola product.
CONCLUSION
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7. CONCLUSION
After conducting the research, Researcher found that there are two categories of retailers. The first
one is of those retailers, which just want to increase their assets, for them the sale doesn’t matter
according to them they can only increase the sale if the company will invest in them or in their
shops. These types of retailers will only work for the company, which invest in them hugely. And
if at any moment they found company has lost or lowered their interest in them they will again
shift to other major player. Other kinds of retailers are those who are more bothered about working
hard and build their reputation in the market. These types of retailers are using the merchandising
assets to their optimum level. And sometimes if they are unable to do so it’s because of the
irregularity of the salesman (when the salesman on the route gets changed) or because of the
Suggest changes accordingly. Despite of this, salesman and other company professionals
who visit these retailers must not do the false promises. Due to this retailers loose their
There is also the need of the transparent schemes and marketing mix that the retailers can
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But all these services can be delivered when a company retain its customers and biggest
loophole in retaining customer for Market. And market is the foremost thing that customer
wants.
This case of Coca Cola Company is related to the Patna Region where the company is the
leader in the both the Market Shares & the Sales Volume. After RED was introduced in
Patna, the Company continuously tried to improve its RED Score Card.
Most of the respondents prefer to take the beverage on the basis of taste.
Out of the whole lot of the Coca Cola products most of the people prefer to take Maaza in
Large quantities.
Majority of the people know the beverages of Coca Cola thru advertisements.
It is heartening to notice that the availability of the Coca Cola Product is excellent.
The Coca Cola products are always found in its optimum condition in which it is expected to
be.
It has come to my notice that most of the customers are unsatisfied with the price of the
beverages.
Almost all the respondents take the beverages on the basis of personal judgment.
Also it is good to observe that most of the people are aware of the promotional schemes
offered by the Company.
It has been observed that most of the people visualize the activation boards properly in front
of the Outlets.
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ANNEXURE
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9. ANNEXURE
ADDRESS _____________________________________________
1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?
1 2 3
2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU
HAVE?
1 2 3
3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU
HAVE?
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1 2 3
5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS
FULL STRENGTH?
b. ( ) MIRINDA-O( ) FANTA
( ) 7-UP
d. ( ) SLICE ( ) MAAZA
Thanks
Signature
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10.BIBLIOGRAPHY
Name of the books used for the reference and their authors.
1). Kotler, Philip, Marketing Management, Delhi, Pearson education Pvt. Ltd.,
2004
2). Kothari, C.R., Research Methodology, New Delhi, Wishwa Prakashan Pvt.
Ltd., 2003,pg.14-26.
Websites Referred:-
http://www.coca-cola.com
www.financialexpress.com
www.businessworld.com
www.cocacolacompany.com
www.cocacolaindia.com
http://www.google.com
MAGAZINES:-
Business Today
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