SUMMER TRAINING REPORT

ON
“BRAND PREFERENCE & ITS IMPACT
ON c PRODUCTS IN LUCKNOW CITY”
Submitted in partial fulfillment of the award of the degree of
Bachelor of Business Administration (B.B.A)
Session: 2021-22

Submitted By
Faizan Ahmad
Enrollment No. 1900103084
Roll No.: 190102958

Under the guidance of

Dr. Syed Afzal Ahmad

Department of Commerce & Business Management

Faculty of Commerce & Management
Integral University
DASAULI KURIS ROAD, LUCKNOW

DECLARATION
1
I, Faizan Ahmad the student of Master of Business Administration (BBA) in

Integral University (2021-22) hereby declare that I have completed this project

on “Brand Preference & Its Impact On Coca-Cola Products In Lucknow

City” This information submitted is true & original to the best of my knowledge.

Faizan Ahmad
Enrollment No. 1900103084
Roll No.: 190102958

2
 PREFACE

Market provides a key to gain actual success only to those brands which match best to the
current environment i.e. is “imperative” which can be delivered what are the people needs &
they are ready to buy at right time without any delay. It is perfectly true but this also depends on
availability of good quality products & excellent taste & services which further attract & add a
golden opportunity for huge sales. The Indian market is getting consumer led. This is the reason
behind unprecedented boom in advertising. Consumer satisfaction has become research worthily.
Multinationals are pouring in precisely because of this new chapter in Indian consumerism.

The dilemma that all marketers are facing is getting the maximum done in the minimum possible
time. And with brand loyalty becoming a thing of the past, given a choice available to the
consumer pull. The consumer could be a purchaser of end products, or a financial investor, or
even an industrial purchaser. Everywhere, there is a new thrust on marketing & advertising.

This report introduces Brand preference & its impact on Coca Cola. After going through detail
analysis if market behavior & future prospect, it may also provide an opportunity to Coca cola &
Pepsi to frame a good future plan to satisfy maximum needs of the customers. It also provides
the various factors affecting the services. Marketing division of Coca cola & Pepsi has to keep in
mind various factors especially while preparing a plan for marketing its products or services.

3
 ACKNOWLEDGEMENT

Every work constitutes great deal of assistance and guidance from the people concerned and this
particular project is of no exception.
A project of the nature is surely a result of tremendous support, guidance, encouragement and
help.
I wish to place on record my sincere gratitude to my project guide Dr. Syed Afzal Ahmad, for
her vast knowledge, creative criticism and utmost co-operation and support. I am also very
thankful to Head, Department of Management, for her constructive help and encouragement
throughout the project. Thanks are also due to the faculty members of the Department of
Management, BBDNIIT for their direct and indirect support.
Also, wish to acknowledge enthusiastic encouragement and support extended to me by my
family members.

4
 TABLE OF CONTENTS

PREFACE
ACKNOWLEDGMENT
INTRODUCTION
HISTORY OF COCA COLA
STRUCTURE OF THE COMPANY
PRODUCTS & SERVICES
RESEARCH METHODOLOGY
DATA ANALYSIS & INTERPRETATION
FINDINGS
RECOMMENDATIONS
BIBLIOGRAPHY
APPENDIX

5
 INTRODUCTION

INTRODUCTION ABOUT COMPANY 

Introduction:

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
in every country except Cuba and North Korea. [1] It is produced by The Coca-Cola
Company of Atlanta, Georgia, and is often referred to simply as Coke (a registered
trademark of The Coca-Cola Company in the United States since March 27, 1944).
Originally intended as a patent medicine when it was invented in the late 19th century
by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler,
whose marketing tactics led Coke to its dominance of the world soft-drink market
throughout the 20th century.

The company produces concentrate, which is then sold to licensed Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially exclusive contracts with the

6
company, produce finished product in cans and bottles from the concentrate in
combination with filtered water and sweeteners. The bottlers then sell, distribute and
merchandise Coca-Cola to retail stores and vending machines. Such bottlers include
Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America
and western Europe. The Coca-Cola Company also sells concentrate for soda fountains
to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the
Coke brand name. The most common of these is Diet Coke, with others including
Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero,
Coca-Cola Vanilla, and special versions with lemon, lime or coffee.

Based on Interbrand's best global brand 2011, Coca-Cola was the world's most
valuable brand.

Acquisitions

The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in
1960,[6] the Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it
acquired the Odwalla brand of fruit juices, smoothies and bars for $181 million. In 2007,
it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an
estimated $250 million. The company's 2009 bid to buy a Chinese juice maker ended
when China rejected its $2.4 billion bid for the Huiyuan Juice Group on the grounds that
it would be a virtual monopoly. [13] Nationalism was also thought to be a reason for
aborting the deal.[14] In 1982, Coca-Cola made its only non-beverage acquisition, when it
purchased Columbia Pictures for $693 million. It sold the movie studio to Sony for $1.5
billion in 1989.

Revenue

7
According to the 2005 Annual Report, [16] the company sells beverage products in more
than 200 countries. The report further states that of the more than 50 billion beverage
servings of all types consumed worldwide every day, beverages bearing the trademarks
owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest
figure in 2010 shows that now they serve 1.6 billion drinks every day). Of these,
beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately
78% of the company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as
follows:

 42% in the United States

 37% in Mexico, India, Brazil, Japan and the People's Republic of China
 20% spread throughout the rest of the world

In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in
annual UK grocery sales.[

COCA COLA SYSTEM IN INDIA

At Coca-Cola, we have a long stable belief that everyone who touches our business
should benefit. Coca-Cola in India provides extensive support for community
programmers across the country, with a focus on education, health & rain water
harvesting. All key priorities of the Indian government has recognized the Company’s
efforts with several awards. 

Education: Coca-Cola in India is supporting community based primary education

projects set up to provide educational opportunities to marginalized children in slum &
villages. Till today, the project have benefited 50 schools, thousands of students, over
500,000 villagers & over10,000 slum dwellers, as well as several villages near bottling
plants.   

Environment: Coca-Cola in India is supporting community based rainwater harvesting

projects in rural & urban areas to help restore water level & promote community
8
education in way to conserve natural resources. These initiatives have benefited over
10,000 Delhi residents, as well as local community members, both in areas surrounding
Coca-Cola bottling plants & elsewhere. 

Healthcare: Coca-Cola in India is partnering with NGO’s as well as St.John’s

Ambulance Brigade (Red Cross) to provide free medical facilities & information to poor
people who can not afford to visit hospital facilities. These efforts are helping tens of
thousands of underprivileged people in seven states in India, as well as several villages
near bottling plants.

The company has also supported a range of other national initiatives, such as a major
Polio eradication drive & drought relief programmers, in addition to support towards the
National Cricket Champion for blinds & National Athletics meetings for the physically
challenged.  
 

LETERATURE REVIEW

  Coca-Cola, the world’s most famous brand completing 120 th of its existence. Today the
company is an unquestionable leader in the world business non- alcoholic beverages.
Coca-Cola is the world’s largest selling soft & arguably the most successful product
ever marketed in the history of commerce. More than one billion serving of Coca-Cola
products are consumed everyday around the world in more than 200 countries. 

  In India, Coca-Cola operates through the COCA-COLA INDIA Division office situated
at Gurgaon near New Delhi. Hindustan Coca-Cola Beverages Private Limited is the fully
owned subsidiary of the Coca-Cola India, which runs a number of bottling plants in
India. 

9
  Hindustan Coca-Cola Beverages Private Limited, Varanasi is one of the key units in
East UP. It is situated at approximately 18km from the city & 40km from the nearest
airport in Babatpur. The unit has a single bottling line of 600 bottles per minute capacity.
Almost all brands of Coca-Cola Company, prominent among them are Coca-Cola,
Thums UP, Sprite, Limca, Fanta are manufactured here. Packaging sizes vary from
200ml, 300ml to 2 liter capacity. Regular glass bottles are handled in plastic reusable
crates. Thus there is no any significant environment impact because of packaging.

   The raw materials used are water, sugar, concentrate & carbon dioxide. Concentrate
plant near Pune supplies the concentrate to these water-bottling units. 

    The wastes generated during the manufacturing process are mainly wastewater &
non-hazardous solid waste in saleable & non-saleable category.  Saleable waste
includes broken glass, plastic, paper, gunny bags, metal scrap & other. The saleable
waste is recycled or reused as raw material to business & other industrial activities &
has no adverse environment impact. Non saleable waste consists of biological ETP
sludge, use carbon, garbage & canteen waste etc. The quantity of this non-saleable
solid waste is very little as compared to the total waste.       

Present soft drink boon in India was attributed to the legacy of Coca-Cola, which was
there in India till 1977. In today’s market the Coca-Cola hold a 62% market share that
appears to bear concentrated rush to beg a big share in the soft drink market. 

Various national & multinational firms are engaged in soft drink market due to increase
in its demand day by day. As far as INDIA soft drink market is concerned there are
major company’s engaged having a big completion to capture the soft drink market are
namely Coca-Cola & Pepsi. While Campa Cola & many local cola’s still notice in the
Indian Market.

Pepsi Cola attacked Coca-Cola before World War II. Coca Cola dominated the
American soft drink industry, Pepsi cola was a drink less to manufactures & with a less
satisfactory taste then Coke. Where as Coca-Cola major selling point was more drink
for the same price and Pepsi emphasized on advertising.

10
During World War II Pepsi & Coke both enjoyed increased sale. After the war Pepsi sale
was started to fall relatively to Coke, resulting the Coca-Cola had starting to click the
problems were poor image, poor taskforce, poor quality control etc. Market share. A
number of factories contributed to Pepsi. At that point Alfred.N.Steeler came to the
presidency of Pepsi cola with a great reputation for merchandising. He and his staff
recognized that the main hope lay transforming Pepsi from a cheap imitator of Coke into
a class on soft drink manufacturer. By 1955 all Pepsi’s major weakness had been
overcome, resulting sales had climbed substantially. These actions from 1955 to 1960
led to a considerable sales growth for Pepsi. 

In India another company engaged in soft drink market is Coca-Cola. It is one of the
most widely known, accepted and admired trademarks of the world. Coca-Cola was
there in India till 1977, when the Indian Government banned it due to strong resentment
against multinational company’s Coca-Cola was re-launched again in India in
September 1993 at “HATHRAS” near Agra. The India people welcomed the comeback
of their most loved Cola in the country with great enthusiasm and vigor. 

      Coca-Cola marked its re-launching with acquiring five Parley drinks viz. Thumps Up,
Gold Spot, Limca, Citra, Maaza, Soda.    Soft drink industry is one of the fastest growing
industries in India. The basic idea behind the rapid growth of this industry is due to
following reasons:

1. The great corporate war between Coke & Pepsi, who left no stone unturned, for
monopolizing the India Soft Drink market.
2. The basic ideology of these two giants is to promote soft drinks as a food item in
India hold.  
3. The long hot summers in India have increased the consumption of soft drinks.

 
Bottling partners of the Coca Cola Company:
In India, the Coca-Cola system comprises of a wholly owned subsidiary of
The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and
sells concentrate and beverage bases and powdered beverage mixes, a Company-
11
owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen
authorized bottling partners of The Coca-Cola Company, who are authorized to prepare,
package, sell and distribute beverages under certain specified trademarks of The Coca-
Cola Company; and an extensive distribution system comprising of our customers,
distributors and retailers. Coca-Cola India Private Limited sells concentrate and
beverage bases to authorized bottlers who are authorized to use these to produce our
portfolio of beverages.These authorized bottlers independently develop local markets
and distribute beverages to grocers, small retailers, supermarkets, restaurants and
numerous other businesses. In turn, these customers make our beverages available to
consumers across India.
 
 

Coca-Cola

 
The official Coca-Cola logo
Type Soft Drink
Manufacturer The Coca-Cola Company
Country of Origin  United States
Introduced 1886
Related products Pepsi
RC Cola
Cola Turka
Zam Zam Cola
Mecca Cola
Virgin Cola
Parsi Cola
Qibla Cola
Afri Cola

12
Color Caramel E-150d
Flavor Cola, Cola cherry, Cola vanilla, Cola
lemon, Cola lime, Cola raspberry, Cola
orange.

13
 HISTORY OF COCA COLA
    JohnPemberton was the inventor of Coca Cola :

       In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist
from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three
legged brass kettle in his backyard. The name was a suggestion given by John
Pemberton’s bookkeeper Frank Robinson.

  Birth of Coca Cola:

    Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who
first scripted "Coca Cola" into the flowing letters which has become the famous logo of
today.

The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in
Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales
for that first year added up to a total of about $50. The funny thing was that it cost John
Pemberton over $70 in expanses, so the first year of sales were a loss.  

  In 1887, Atlanta pharmacist and businessman, Asa Candler bought the formula for
Coca Cola from inventor John Pemberton for $2,300.  
14
By the late 1890s, Coca Cola was one of America's most popular fountain drinks,
largely due to Candler's aggressive marketing of the product. The Coca Cola Company
increased syrup sales by over 4000% between 1890 and 1900.  

Advertising was an important factor in John Pemberton and Asa Candler's success and
by the turn of the century, the drink was sold across the United States and Canada. At
the same time, the company began selling syrup to independent bottling companies
licensed to sell the drink.

                 
  The Early Days 

Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia,

who sold the syrup mixed with fountain water as a potion for mental and physical
disorders. The formula changed hands three more times before Asa D. Candler added
carbonation and by 2003, Coca-Cola was the world’s largest manufacturer, marketer,
and distributor of Nonalcoholic beverage concentrates and syrups, with more than 400
widely recognized beverage brands in its portfolio. 

With the bubbles making the difference, Coca-Cola was registered as a trademark in
1887 and by 1895, was being sold in every state and territory in the United States. In
1899, it franchised its bottling operations in the U.S., growing quickly to reach 370
franchisees by 1910. Headquartered in Atlanta with divisions and local operations in
over 200 countries worldwide, Coca-Cola generated more than 70% of its income
outside the United States by 2003. 

15
International expansion:

Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama.
By the end of the 1920’s Coca-Cola was bottled in twenty-seven countries throughout
the world and available in fifty-one more. In spite of this reach, volume was low, quality
inconsistent, and effective advertising a challenge with language, culture, and
government regulation all serving as barriers. Former CEO Robert Woodruff’s
insistence that Coca-Cola wouldn’t “suffer the stigma of being an intrusive American
product,” and instead would use local bottles, caps, machinery, trucks, and personnel
contributed to Coke’s challenges as well with a lack of standard processes and training
degrading quality. Coca-Cola continued working for over 80 years on Woodruff’s goal:
to make Coke available wherever and whenever consumers wanted it, “in arm’s reach
of desire.” 

The Second World War proved to be the stimulus Coca-Cola needed to build effective
capabilities around the world and achieve dominant global market share. Woodruff’s
patriotic commitment “that every man in uniform gets a bottle of Coca-Cola for five
cents, wherever he is and at whatever cost to our company” as a result of Coke’s status
as a military supplier, Coca-Cola was exempt from sugar rationing and also received
government subsidies to build bottling plants around the world to serve WWII troops.
The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD)
industry in the United States, achieving only 0.2% growth by 2000 (just under 10
billioncases) in contrast to the 5-7% annual growth experienced during the 1980’s.
While per capita consumption throughout the world was a fraction of the United States’,
major beverage companies clearly had to look elsewhere for the growth their
shareholders demanded. The looming opportunity for twenty-first century was in the
world’s developing markets with their rapidly growing middle class populations. 

The World’s Most Powerful Brand :

Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the
World and estimated its brand value at $70.45 billion .

16
The ranking’s methodology determined a brand’s valuation on the basis of how much it
was likely to earn in the future, distilling the percentage of revenues that could be
credited to the brand, and assessing the brand’s strength to determine the risk of future
earnings forecasts. Considerations included market leadership, stability, and global
reach, incorporating its ability to cross both geographical and cultural borders. 

Indian History: 

India is home to one of the most ancient cultures in the world dating back over 5000
years. At the beginning of the twenty-first century, twenty-six different languages were
spoken across India, 30% of the population knew English, and greater than 40% were
illiterate. At this time, the nation was in the midst of great transition and the dichotomy
between the old India and the new was stark. Remnants of the caste system existed
alongside the world’s top engineering schools and growing metropolises as the
historically agricultural economy shifted into the services sector. In the process, India
had created the world’s largest middle class, second only to China.

A British colony since 1769 when the East India Company gained control of all
European trade in the nation, India gained its independence in 1947 under Mahatma
Gandhi and his principles of non-violence and self-reliance. In the decades that
followed, self-reliance was taken to the extreme as many Indians believed that
economic independence was necessary to be truly independent. As a result, the
economy was increasingly regulated and many sectors were restricted to the public
sector. This movement reached its peak in 1977 when the Janta party government
came to power and Coca-Cola was thrown out of the country. In 1991, the first
generation of economic reforms was introduced and liberalization began. 

Coke in India:

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than
reveal its formula to the government and reduce its equity stake as required under the
Foreign Exchange Regulation Act (FERA) which governed the operations of foreign
companies in India. After a 16-year absence, Coca-Cola returned to India in 1993,
17
cementing its presence with a deal that gave Coca-Cola ownership of the nation's top
soft-drink brands and bottling network. Coke’s acquisition of local popular Indian brands
including Thums Up (the most trusted brand in India ), Limca, Maaza, Citra and Gold
Spot provided not only physical manufacturing, bottling, and distribution assets but also
strong consumer preference. This combination of local and global brands enabled
Coca-Cola to exploit the benefits of global branding and global trends in tastes while
also tapping into traditional domestic markets. 

Leading Indian brands joined the Company's international family of brands, including
Coca-Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000,
the company launched the Kinley water brand and in 2001, Shock energy drink and the
powdered concentrate Sunfill hit the market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one
of the country’s top international investors. 

By 2003, Coca-Cola India had won the prestigious Woodruf Cup from among 22
divisions of the Company based on three broad parameters of volume, profitability, and
quality. Coca-Cola India achieved 39% volume growth in 2002 while the industry grew
23% nationally and the Company reached break-even profitability in the region for the
first time. 

Encouraged by its 2002 performance, Coca-Cola India announced plans to double its
capacity at an investment of $125 million (Rs. 750 crore) between September 2002 and
March 2003. 

Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven
wholly-owned bottling operations supplemented by seventeen franchisee-owned bottling
operations and a network of twenty-nine contract-packers to manufacture a range of
products for the company. The complete manufacturing process had a documented
quality control and assurance program including over 400 tests performed throughout
the process . 

18
The complexity of the consumer soft drink market demanded a distribution process to
support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay
three wheelers, and trademarked tricycles and pushcarts that were used to navigate the
narrow alleyways of the cities. 
 In addition to its own employees, Coke indirectly created employment for another
125,000 Indians through its procurement, supply, and distribution networks. 

Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice
President, Marketing and was instrumental to the company’s success in developing a
brand Coca-Cola India. 

The Indian consumer and in tapping India’s vast rural market potential. Following his
marketing responsibilities, Gupta served as Head of Operations for Company-owned
bottling operations and then as Deputy President. Seen as the driving force behind
recent successful forays into packaged drinking water, powdered drinks, and ready-to-
serve tea and coffee, Gupta and his marketing prowess were critical to the continued
growth of the Company. India’s one billion people, growing middle class, and low per
capita consumption of soft drinks made it a highly contested prize in the global CSD
market in the early twenty-first century. Ten percent of the country’s population lived in
urban areas or large cities and drank ten bottles of soda per year while the vast
remainder lived in rural areas, villages, and small towns where annual per capita
consumption was less than four bottles. Coke and Pepsi dominated the market and
together had a consolidated market share above 95%. While soft drinks were once
considered products only for the affluent, by 2003 91% of sales were made to the lower,
middle and upper middle classes. Soft drink sales in India grew 76% between 1998 and
2002, from 5,670 million bottles to over 10,000 million and were expected to grow at
least 10% per year through 2012. 

In spite of this growth, annual per capita consumption was only 6 bottles versus 17 in
Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States.

With its large population and low consumption, the rural market represented a
significant opportunity for penetration and a critical battleground for market dominance.
19
In 2001, Coca-Cola recognized that to compete with traditional refreshments including
lemon water, green coconut water, fruit juices, tea, and lassi, competitive pricing was
essential. In response, Coke launched a smaller bottle priced at almost 50% of the
traditional package. 

Marketing Cola in India  

The post-liberalization period in India saw the comeback of cola but Pepsi had already
beaten Coca-Cola to the punch, creatively entering the market in the 1980’s in advance
of liberalization by way of a joint venture. As early as 1985, Pepsi tried to gain entry into
India and finally succeeded with the Pepsi Foods Limited Project in 1988, as a JV of
PepsiCo, Punjab government-owned Punjab Agro Industrial Corporation (PAIC), and
Voltas India Limited. Pepsi was marketed and sold as Lehar Pepsi until 1991 when the
use of foreign brands was allowed under the new economic policy and Pepsi ultimately
bought out its partners, becoming a fully-owned subsidiary and ending the JV
relationship in 1994. 

While the joint venture was only marginally successful in its own right, it allowed Pepsi
to gain precious early experience with the Indian market and also served as an
introduction of the Pepsi brand to the Indian consumer such that it was well-poised to
reap the benefits when liberalization came. Though Coke benefited from Pepsi creating
demand and developing the market, Pepsi’s head-start gave Coke a disadvantage in
the mind of the consumer.  

2001 Marketing Strategy 

Coca-Cola CEO Douglas Daft set the direction for the next generation of success for his
global brand with a “Think local, act local” mantra. Recognizing that a single global
strategy or single global campaign wouldn’t work, locally relevant executions became an
increasingly important element of supporting Coke’s global brand strategy. 

20
In 2001, after almost a decade of lagging rival Pepsi in the region, Coke India re-
examined its approach in an attempt to gain leadership in the Indian market and
capitalize on significant growth potential, particularly in rural markets. The foundation of
the new strategy grounded brand positioning and marketing communications in
consumer insights, acknowledging that urban versus rural India were two distinct
markets on a variety of important dimensions. The soft drink category’s role in people’s
lives, the degree of differentiation between consumer segments and their reasons for
entering the category, and the degree to which brands in the category projected
different perceptions to consumers were among the many important differences
between how urban and rural consumers approached the market for refreshment. 
 
 In rural markets, where both the soft drink category and individual brands were
undeveloped, the task was to broaden the brand positioning while in urban markets,
with higher category and brand development, the task was to narrow the brand
positioning, focusing on differentiation through offering unique and compelling value.
This lens, informed by consumer insights, gave Coke direction on the tradeoff between
focus and breadth a brand needed in a given market and made clear that to succeed in
either segment, unique marketing strategies were required in urban versus rural India. 

Brand Localization Strategy  

The Two India’s India A: “Life ho to aisi”

“India A,” the designation Coca-Cola gave to the market segment including metropolitan
areas and large towns, represented 4% of the country’s population. This segment
sought social bonding as a need and responded to inspirational messages, celebrating
the benefits of their increasing social and economic freedoms. “Life ho to aisi,” (life as it
should be) was the successful and relevant tagline found in Coca-Cola’s advertising to
this audience. 

India B: “Thanda Matlab Coca-Cola” 

21
Coca-Cola India believed that the first brand to offer communication targeted to the
smaller towns would own the rural market and went after that objective with a
comprehensive strategy. “India B” included small towns and rural areas, comprising the
other 96% of the nation’s population. This segment’s primary need was out-of-home
thirst-quenching and the soft drink category was undifferentiated in the minds of rural
consumers. Additionally, with an average Coke costing Rs. 10 and an average day’s
wages around Rs. 100, Coke was perceived as a luxury that few could afford. 

In an effort to make the price point of Coke within reach of this high-potential market,
Coca-Cola launched the Accessibility Campaign, introducing a new 200ml bottle,
smaller than the traditional 300ml bottle found in urban markets, and concurrently
cutting the price in half, to Rs. 5. This pricing strategy closed the gap between Coke and
basic refreshments like lemonade and tea, making soft drinks truly accessible for the
first time. At the same time, Coke invested in distribution infrastructure to effectively
serve a disbursed population and doubled the number of retail outlets in rural areas
from 80,000 in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%. 

Coke’s advertising and promotion strategy pulled the marketing plan together using
local language and idiomatic expressions. “Thanda,” meaning cool/cold is also generic
for cold Beverages and gave “Thanda Mat lab Coca-Cola” delicious multiple meanings.
Literally translated to “Coke means refreshment,” the phrase directly addressed both the
primary need of this segment for cold refreshment while at the same time positioning
Coke as a “Thanda” Or generic cold beverage just likes tea, lassi, or lemonade. As a
result of the Thanda Campaign, Coca-Cola won Advertiser of the Year and Campaign of
the Year in 2003 . 
 
 

Rural Success 

Comprising 74% of the country's population, 41% of its middle class, and 58% of its
disposable income, the rural market was an attractive target and it delivered results.

22
Coke experienced 37% growth in 2003 in this segment versus the 24% growth seen in
urban areas.

Driven by the launch of the new Rs. 5 product, per capita consumption doubled
between 2001-2003. This market accounted for 80% of India’s new Coke drinkers, 30%
of 2002 volume, and was expected to account for 50% of the company’s sales in 2003. 

Corporate Social Responsibility 

As one of the largest and most global companies in the world, Coca-Cola took seriously
its ability and responsibility to positively affect the communities in which it operated. The
company’s mission statement, called the Coca-Cola Promise, stated: “The Coca-Cola
Company exists to benefit and refresh everyone who is touched by our business.” The
Company has made efforts towards good citizenship in the areas of community, by
improving the quality of life in the communities in which they operate, and the
environment, by addressing water, climate change and waste management initiatives.
Their activities also included the Coca-Cola Africa Foundation created to combat the
spread of HIV/AIDS

Through partnership with governments, UNAIDS, and other NGOs, and the Coca-Cola
Foundation, focused on higher education as a vehicle to build strong communities and
enhance individual opportunity . 

Coca-Cola’s footprint in India was significant as well. The Company employed 7000
citizens and believed that for every direct job, 30-40 more were created in the supply
chain.

Like its parent, Coke India’s Corporate Social Responsibility (CSR) initiatives were both
Community and environment-focused. Priorities included education, where primary
Education projects had been set up to benefit children in slums and villages; water
Conservation, where the Company supported community-based rainwater harvesting
projects To restore water levels and promote conservation education, and health, where
Coke India Partnered with NGOs and governments to provide medical access to poor

23
people through Regular health camps. In addition to outreach efforts, the company
committed itself to Environmental responsibility through its own business operations in
India including: 

 Environmental due diligence before acquiring land or starting projects

 Environmental impact assessment before commencing operations
 Ground water and environmental surveys before selecting sites
 Compliance with all regulatory environmental requirements
 Ban on purchasing CFC-containing refrigeration equipment
 Waste water treatment facilities with trained personnel at all company-owned
bottling operations
 Energy conservation programs
 50% water savings in last seven years of operations

 Despite Coke’s reputation as a socially responsible corporate citizen, the Company has
faced its share of controversy worldwide surrounding both its products and its policies in
the years preceding the Indian pesticide crisis. 

In the spring of 1999, 4 current and former Coca-Cola employees, led by Information
Analyst Linda Ingram filed bias charges against Coca-Cola in Atlanta Federal Court.
The Lawsuit charged the Company with racial discrimination and stated: “This
discrimination represents a company-wide pattern and practice,  rather than a series of
isolated incidents.

Although Coca-Cola has carefully crafted African-American consumers of its product by

public announcements, strategic alliances and specific marketing strategies, it has failed
to place the same importance on its African-American employees.” In the decades
leading up to the suit, both internal and external warnings surrounding Coke’s diversity
practices were issued. In 1981, the Reverend Jesse Jackson, director of the Coca-Cola
India.

The Ware report, written by Senior Vice President Carl Ware, an African-American
executive at the Company, cited a lack of diversity at the decision-making level, a basic

24
lack of workplace diversity, a “ghettoization” among blacks who worked for Cola-Cola,
and an overt lack of respect for cultural differences as well as an implicit assumption
that African-American employees lacked the intelligence to meet the challenges of the
highest executive levels. 

Cyrus Mehri, one of the most visible and successful plaintiff advocates in the US,
represented the group and was skilled at leveraging the power of the media, creating a
true crisis for the Coca-Cola Company and exerting tremendous pressure for
settlement. In 2000, the lawsuit was settled for $192.5 million after the company had
sent mixed messages and damaging statements regarding the merit of the suit for over
a year. Analysts identified the bias suit as a prime reason for the $100 billion decrease
in Coca-Cola’s stock price between 1998-2000. On June 8, 1999, thirty-three Belgian
school children became ill after drinking Coke bottled at a local facility in Antwerp. A few
days later, more Belgians complained of similar symptoms after drinking cans of Coke
that had been bottled at a plant in Dunkirk, France and eighty people in northern France
were allegedly stricken by intestinal problems and nausea, bringing the total afflicted to
over 250. 

In the days following the first outbreak, seventeen million cases of Coke from five
European countries were recalled and destroyed. It was the largest product recall in
Coke’s history and Belgian and French authorities banned the sale of Coca-Cola
products for ten days. Germany placed a temporary import ban on Coca Cola produced
in Belgium and the Netherlands, and Luxembourg banned all Coca Cola products.
Health ministers in Italy, Spain, and Switzerland warned people about consuming Coke
products. 

Coca-Cola sources explained that the contamination was due to defective carbon
dioxide used at the Antwerp plant and that a wood preservative used on shipping pallets
had concentrated the outside of cans at the Dunkirk plant. The European Commission,
however, believed production faults and contaminated pipes were more likely to be the
cause of the problem. 

25
Though CEO Ivester was in Paris when the news broke, he flew home to Atlanta and
kept silent, waiting over a week to issue his first public statement on the crisis, citing
that “Coke would do whatever necessary to ensure the safety of its products.” A
Netherlands-based toxicologist Coke had hired issued a report on June 29 exempting
the company from blame for the CO. An aggressive PR campaign included vouchers
and coupons for free product delivered to each of Belgium’s 4.4 million homes,
sponsored dances, beach parties, and summer fairs for teenagers, and significant
television advertising reinforcing “Today, more than ever, we thank you for your
loyalty.” 

Kinley Bottled Water:

On February 4, 2003 the Center for Science and Environment (CSE) in India released a
report based on tests conducted by the Pollution Monitoring Laboratory (PML) titled
“Pure Water or Pure Peril?” Analysis of 17 packaged drinking water brands sold across
the country revealed evidence of pesticide residues including lindane, DDT, malathion,
and chlorpyrifos. The CSE used European norms for maximum permissible limits for
pesticides in packaged water “because the standards set for pesticide residues by the
Bureau of Indian Standards (BIS) are vague and undefined.” 

Coca-Cola’s Kinley water brand had concentration levels 15 times higher than stipulated
limits, top-seller Biserli had 79 times and Aquaplus topped the list at 109 times. In the
wake of this statement, Coca-Cola remained largely silent and the buzz went away.
Corporate Communications at Coca-Cola Corporate Communications was a critical
function at the Coca-Cola corporation given the number of constituencies both internal
and external to the company. In addition, the complexity and global reach of the
Company's operations could not be centrally managed and instead demanded a
matrixed team organization. 

The senior communications position at the company, Senior Vice President, Worldwide
Public Affairs & Communication, sat on the company's executive committee and
reported to the Chairman & CEO at the time of the crisis in India. Director-level
corporate communication functions included:
26
Media Relations, Nutrition Communications, Financial Communications, and Marketing
Communications, but the geographic diversity of the company's businesses required
regionally-based communication leaders in addition to the corporate resources in place.
As a result, five regional communications directors serviced North America, Latin
America, Asia, Europe, and Africa with their own teams of communications
professionals . 

NGOs (Non-Governmental Organizations) evolved to influence governments but by the

early twenty-first century many realized that targeting corporations and key corporate
constituents such as investors and customers could be an even more powerful way to
effect change. Along with their ability to focus, gain attention, and act quickly was the
high level of credibility NGOs had cultivated with many constituencies. This credibility
stemmed in part from their emotional, rather than fact-based, appeals and the
impassioned nature of their arguments. 

The most common tactic of NGOs was to develop campaigns against business through
which they garnered support from consumers and the media. These campaigns, such
as Greenpeace’s attack on Shell Oil following the company’s decision to dump the Brent
Spar oil rig in the ocean in the 1990s, typically focused on a single issue; targeted
companies with successful and well-known brands such as McDonald’s and Nike; and
were augmented by market trends such as the homogenization created by chains like
Wal-Mart and Starbucks.

NGOs realized that anti-corporate campaigns could be far more powerful than anti-
government campaigns. Global Exchange’s attack on Nike for sweatshop labor
conditions in the 1990s, for example, was one of the most highly publicized and also
one of the most successful anti-business campaigns in recent years. 

Center for Science and Environment:

The CSE, an NGO, was established in India in 1980 by a group of engineers, scientists,
journalists and environmentalists to “catalyze the growth of public awareness on vital
issues in science, technology, environment, and development.”  Led by Sumita Narain,

27
a former schoolmate of Coke India CEO Gupta, the CSE’s efforts included
communication for awareness, research and advocacy, education and training,
documentation, and pollution monitoring. Spurred by the February 2003 report on
bottled water and questions like “if what we found in bottled water was correct, then
what about soft drinks?” the CSE’s August 2003 report claimed that soft drinks were
extremely dangerous to Indian citizens based on tests conducted at the Pollution
Monitoring Laboratory (PML). All samples contained residues of lindane, DDT,
malathion, and chlorpyrifos, toxic pesticides and insecticides known to cause serious
long term health issues. Total pesticides in all Coca-Cola brands averaged 0.0150 mg/l,
30 times higher than the European Economic Commission (EEC) limit. PML also tested
samples of Coke and Pepsi products sold in the United States to see if they contained
pesticides and they did not.

Regulations on soft drinks were weak in India, even compared to bottled water, as
neither the Prevention of Food Alteration Act (PFA) nor the Fruit Products Order (FPO),
aimed at regulating food standards in India, addressed pesticides in soft drinks, and
there were no standards to define ‘clean’ or ‘potable’ water. The report called on the
government to put in place legally enforceable water standards and chastised the multi-
nationals for taking advantage of the situation at the expense of consumer health and
well-being. 

Indian Regulatory Environment: 

The main law governing food safety in India was the 1954 Prevention of Food Alteration
Act (PFA) which contained a rule regulating pesticides in foods but did not include
beverages. The Food Processing Order (1955) required that the main ingredient used in
soft drinks be “potable water” but the Bureau of Indian Standards (BIS) had no
prescribed standards for pesticides in water. One BIS directive stated that pesticides
must be absent and set a limit of 0.001 parts per million but the Health Secretary
admitted, “There are lapses in PFA regarding carbonated drinks.” 

Indian law enforcement was minimal with virtually no conviction under PFA. In the
absence of national standards, NGOs such as the CSE turned to the United States and
28
the European Union for “international norms.” The appropriateness and feasibility of
these standards for developing nations however, remained a question for many. Under
EU food laws for example, milk, fruit, and basic staples such as rice and wheat would
need to be imported into India to satisfy safety standards. 

The Initial Response:

The day after the CSE’s announcement, Coke and Pepsi came together in a rare show
of solidarity at a joint press conference. The companies attacked the credibility of the
CSE and their lab results, citing regular testing at independent laboratories proving the
safety of their products. They promised to provide this data to the public, threatened
legal action against the CSE while seeking a gag order, and contacted the United
States Embassy in India for assistance. Coca-Cola India’s CEO Sanjiv Gupta published
the following statement for the Indian public: 

You may have seen recently in the media some allegations about the quality standards
of our products in India. We take these allegations extremely seriously. I want to
reassure you that our products in India are safe and are tested regularly to ensure that
they meet the same rigorous standards we maintain across the world. Maintaining
quality standards is the most important element of our business and we cannot stand by
while misleading and unaccredited data is used to discredit trusted and world-class
brands. Recent allegations have caused unnecessary panic among consumers in India
and, if unchecked, would impair our business in India and impact the livelihoods of our
thousands of employees across the country. 

 This site is about the truth behind the headlines. It provides some context and facts on
these issues and we hope it helps you understand exactly why you can trust our
beverage brands and continue to enjoy them as millions of Indians do each day.

Sanjiv Gupta, Division President, Coca-Cola India in the following days, the Delhi High
Court asked the government to convene an expert committee to test and report on the

29
safety of soft drinks within three weeks and to revise existing standards to include
pesticide norms. Coca-Cola and Pepsi launched independent campaigns to reassure
the public, taking out full-page newspaper advertisements and directing consumers to
their corporate Web sites to review test results and safety protocol in greater detail (See
Exhibits 10 and 11). In spite of these actions, the public seemed to believe the CSE’s
claims and the crisis was far from over for the beverage giants. With sales continuing to
experience a precipitous drop, one Delhi medical student’s sentiments appeared to be
widespread: “For a person drinking at least one bottle a day, the report came as a rude
shock. I haven’t picked up a bottle today and most definitely will not consume soft drinks
in the future. The reports of pesticides and other pollutants have made soft drinks a
strict no-no and we will now stick to juices and plain drinking water.” 

Jon Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta,
Georgia it was May 1861 when the pharmacist concocted caramel colored syrup in
three–legged brass kettle in his backyard. He first distributed the new product by
carrying Coca-Cola in a jug crown enjoys in a glass of Coca-Cola at the soda fountain.
Whether by design or accident, carbonated water was teamed with the new syrup,
producing a drink that was proclaimed “Delicious and Refreshing”. 

      Dr. Pemberton’s Partner and bookkeeper, Mr. Frank Robinson, suggested the name
and penned as “Coca-Cola” in the unique flowing script that is still famous worldwide
today. 

Dr. Pemberton’s sold 25 gallons of syrup, shipped in bright Red wooden kegs. Red has
been a distinctive color associated with the No.1 soft drink brand ever since. For his
efforts, Dr. Pemberton   grossed $ 50 and spent $73.96 on advertising, by 1891, Atlanta
chemist as a G.Canler had acquired complete ownership of the Coca-Cola business. He
purchases it from the Dr.Pemberton family for $ 2300. Within 4 year his merchandising
flair helped to expand the consumption of Coca-Cola to over $25 million.

Robert W. woodruff become the president of the Coca-Cola company in 1923 and his
more than six decades of leadership took the business of commercial success making
Coca-Cola an institution the world over. Coca-Cola begins as a never tonic, but candy
30
merchant Joseph A. Biedenharn of Mississippi was looking for awry to serve refreshing
beverages. He responded to this demand began offering bottle Coca-Cola using syrup
shipped from Atlanta, during a hot summer in 1894.  
 
 

31
 HISTORY in INDIA 

Coca-Cola in India has setup an independent organizations which is H.C.C & B.C.C
with a capital of 350 U.S.$ each by virtue of sellout decision of the passed managing
director Sh. S. C. Aggarwal.

Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession
of this plant, land, machinery, & intellectuals on February 14’ 1998 and since then
H.C.C, looking after all its affairs under company owned bottling plant to establish
integrated marketing system in the area. 

In 1999 the company opened up the new bottling plant at DASNA in Ghaziabad Distt.
This plant has more sophisticated equipments, then the plant at Najibabad.     

 
 History of Bottling:
1950    Coca-Cola bottling plant opens in New Delhi
1958    Concentrate plant opens in India
1973    22 bottling plants operate in 13 states
1977    Coca-Cola and 38 other companies refuse to dilute stake, formally
              withdraws from Country in 1978
1992    Re-enters India

32
 STRUCTURE OF THE COMPANY

The Coca Cola Company is global player and approximately 70 percent of its volume
and80 percent of its profit come from outside the United State Of America. Although it
was perceived as a standardized brand across the world, Coca Cola had been quietly
fine turning its international marketing strategies to suit the needs of individual national
markets. Only the brands Coca-Cola, Sprite and Fanta were marketed globally. In Latin
American and Europe, where a heavy consumer preferred existed for lemon lime and
orange sodas. Coke had developed a wide range of formulations and flavors to cater
the needs of different countries. In Indonesia Coke had been selling pineapple and
banana flavored sodas which had been carefully developed to suit local preferences. In
Japan, Coca-Cola had added a coffee drink called Georgia and energy healthy drink
named Aquarius to its product line. In India, the Coca-Cola Company acquired the
brands Limca, Maaza and Thums Up in 1993.   

Marketing mix of any organization consists of 4 ps i.e.  Product, price, place and
promotion having its own significance, that varies from one organization to the other. in
coca – cola the information about all the 4 P`s that can be available to me is given here:

PRODUCT: Product mix of coca-cola consists of the various brand packs and flavor
given in the table. Product strategy of the coca-cola is to promote all brands available in
the brand packs and to introduce the product in new flavor is also introduced.  

PRICE:   Regarding the pricing policy or the price to the distributor is not disclosed to
me, but as done for the different product of the company, company has priced the
product same as that of its major competitor or the market leader.

PLACE:   The coca-cola company in India is governed from its corporate office located
at Gurgaon in Haryana. It governs the working of five zones covering whole India these
zones are –north zone , eastern zone , western – zone , southern  zone and Andhra
Pradesh zone . These zones are divided in to various. Plant, which govern the area
assigned to them. The area is the various distribution centers called distributors and
C&F agents. Then come the retailers / customer for the company’s product, they
33
receive well from distributor and c& f agent. Finally consumer is there, having the
product from the consumer’s shops or delivered to their home, it is more clearly visible
through this chart. The coca-cola company, which gave its reach to the mouth of billion
of people all around the world having a wide distribution, network. In India, the pace and
Speed at which coca-cola has widened its business is really amazing. Distribution
network is the biggest strength of the company.  

PROMOTION:   This past of   the marketing is playing a very vital and important role
in the current situation in India. Looking at the competition and promotion and
advertising budget of both the companies coca-cola and Pepsi, one can easily estimate
the importance of this. The promotion mix of coca-cola is divided in to top line promotion
and below the line promotion.  

Top line promotion  includes the promotion designed and done by the company’s
corporate office of Gurgaon and  the  office of Bombay T.V  ads , design of banner , 
and other p-s done by the company simultaneously all around   India with no difference
in designs etc  fall in this category . Below the line promotion includes the promotion
schemes, publicity material, POS display done by the company from zonal, plant, sale
manager and area sales manager level. At the sales manager and area sales manager
level the promotion   done exclusively for the cities in their respective area and other
POS display. 

STRUCTURE OF ORGANISATION

The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office
in 1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers
everywhere, was granted registration as a trademark by the U.S. Patent and Trademark
Office in 1977, an honor awarded very few packages.

Rise of the Bottling Industry

34
Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at
the local soda fountain or ice cream saloon. Often housed in the drug store, the soda
fountain counter served as a meeting place for people of all ages. Often combined with
lunch counters, the soda fountain declined in popularity as commercial ice cream,
bottled soft drinks, and fast food restaurants became popular.

New Coke

On April 23, 1985, the trade secret "New Coke" formula was released. Today, products
of the Coca Cola Company are consumed at the rate of more than one billion drinks per
day. 

In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies necessitated
its departure. Coca-Cola made its return to the country in 1993 and made significant
investments to ensure that the beverage is available to more and more people, even in
the remote and inaccessible parts of the nation.  

Coca-Cola returned to India in 1993 and over the past ten years has captured the
imagination of the nation, building strong associations with cricket, the thriving cinema
industry, music etc.. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and Life ho
to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-Cola
launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand to
make it India's favourite soft-drink brand. In 2003, Coke was available for just Rs. 5
across the country and this pricing initiative together with improved distribution ensured
that all brands in the portfolio grew leaps and bounds. 

   The Coca-Cola business in India 

While the Coca-Cola Company is a global company with some of the world`s most
widely recognized brand, the Coca Cola business in India, as in each country where it
operate, is a local business. Beverages are produced locally employing Indian citizens,
Coke product range & marketing reflect Indian tastes & lifestyles. They are deeply
involved in the life of the local communities in which they operate.  

35
 Investment, Employment & Economic Impact

Coca Cola in India has made significant investment to build & continually improve its
business in India. It includes new production facilities, waste water treatment plants, &
distribution systems & marketing equipment. During the past decade, the Coca Cola
has invested more than 1 billion US$ in India .Thus Coca Cola is one of the country`s
top international investors. In 2003, Coca-Cola in India pledged to invest a further 100
million US$ in its further operation.

The Coca- Cola business system directly employs approximately 10,000 local people in
India. In addition, several independent studies have shown that, by providing
opportunities for local enterprises, the Coca-Cola business also generates a significant
employment multiplier effect. Also it create employment for more than 1,25,000 people
in related industries through our vast procurement, supply & distribution system. 

Bottling Operations 

The Coca-Cola Company in India comprises 27 wholly owned company bottling plants
& another 17 franchisee owned bottling operation plants.  A network of 29 contract-
packers also manufactures a range of products for the company.

Almost all the goods & services required to produce & market Coca- Cola in India are
made locally, sometime with the help of technology & skill from the company. The
complexity of the Indian market is reflected in the distribution fleet, which includes 10-
ton trucks, open-bay three-wheelers that can navigate the narrow alleyways of Indian
cities, and trademarked tricycle & pushcarts.  

36
 PRODUCTS & SERVICES

Leading Indian brands Thumps, Limca, Maaza, and Citra & Gold Spot join the company
international family of brands, including Coca-Cola, diet Coke, Sprite & Fanta plus the
Schweppes product range. Kinley water brand was launched in 2000 & in 2001, energy
drink Shock & first powdered concentrate, Sunfill, hit the market.

THUMS UP

Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993. 
  Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys.

Glass PET Can Fountain

200 ml, 300 ml, 500 ml, 1000 ml 500 ml, 1.5 L,   330 ml Various Sizes
2 L, 2.25 L, 
500 ml + 100 ml

       

  COCA-COLA 

  COCA-COLA is the most popular & biggest selling soft drink in history, as well as best
known product in the world. Created in Atlanta , COCA-COLA was first offered as a
fountain beverages by mixing Coca-Cola syrup with carbonated water. COCA-COLA
was registered as a trademark in 1887 & by 1895 Coca-Cola was being sold in every
state & territory in the United States. Today, you can find COCA-COLA in virtually every
part of the world. The Coca-Cola Company has nearly 400 beverages in its portfolio .  
  

37
SPRITE

Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries. 
In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest
growing soft drinks, leading the Clear lime category.  
   Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,
Sprite has stood for a straight forward and honest attitude. Its clear crisp  
refreshing taste encourages the today's youth to trust their instincts, influence them to
be true to who they are and to obey their thirst. 

Glass PET Can Fountain

200 ml, 300 ml, 500 ml, 1000 ml 500 ml, 1.5 L,   330 ml Various Sizes
2 L, 2.25 L, 
500 ml + 100 ml
 
 LIMCA

Refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst
choice, of millions of consumers for over 3 decades. The brand has been displaying
healthy volume growths year on year and Limca continues to be the leading flavor soft
drink in the country. 
 

The success formula? The sharp fizz and lemony bite combined with the single
minded positioning of the brand as the ultimate refresher has continuously strengthened
the brand franchise. Limca energizes refreshes and transforms. Dive into the zingy
refreshment of Limca and walk away a new person.  

  Fanta     

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of
the favorite drinks since 1940's. Fanta entered the Indian market in the year 1993.
38
Over the years Fanta has occupied a strong market place and is identified as "The Fun
Catalyst".  
Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and
tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging
one to indulge in the moment. This positive imagery is associated with happy, cheerful
and special times with friends.

Glass PET Can Fountain

200 ml, 300 ml, 500 ml, 1.5 L,   330 ml Various Sizes
2 L, 2.25 L, 
500 ml + 100 ml
 

Maaza

 It was launched in 1976. Here was a drink that offered the same real taste of fruit juices
and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola
India. Maaza currently dominates the fruit drink. Over the years, brand Maaza has
become synonymous with Mango. This has been the result of such successful
campaigns like "Taaza Mango, Maaza Mango" and "Botal mein Aam, Maaza hain
Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers the
real experience of fruit.  
The current advertising of Maaza positions it as an enabler of fun friendship moments
between moms and kids as moms trust the brand and the kids love its taste. The
campaign builds on the existing equity of the brand and delivers a relevant emotional
benefit to the moms rightly captured in the tagline "Yaari Dosti Taaza Maaza"

Maaza

39
Type Fruit juice
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1976
Variants Maaza Orange, Maaza Pineapple
Related products Slice, Frooti
 
 
 Water, a thirst quencher that refreshes, a life giving force that washes all the toxins
away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of
life, the very sustenance of life, a celebration of life itself. The importance of water can
never be understated. Particularly in a nation such as India where water governs the
lives of the millions, be it as part of everyday rituals or as the monsoon which gives life
to the sub-continent.

 Kinley water understands the importance and value of this life giving force. Kinley water
thus promises water that is as pure as it is meant to be. Water you can trust to be truly
safe and pure.

Kinley water comes with the assurance of safety from the Coca-Cola Company. That is
why we introduced Kinley with reverse-osmosis along with the latest technology to
ensure the purity of our product. That's why we go through rigorous testing procedures
at each and every location where Kinley is produced.

40
 PERFORMANCE OF THE COMPANY
Hindustan Coca-Cola Beverages Private Limited, Dasna unit, bags the
“Golden Peacock Environment Management Award 2004” 
 

The Dasna unit near Delhi in Ghaziabad has been awarded the prestigious “Golden
Peacock Environment Management Award – 2004 (GPEMA- 2004)” for excellent
environment practices and effective control of environmental impact.  
The Dasna unit won this award in the Food & Beverage Industry category for its
environment practices among hundreds of entries received from across the country.
The annual award winner is decided on the basis of a rigorous assessment procedure,
which includes a visit to the facility by a team of experts. 
Speaking on the occasion, Mr. Sanjiv Gupta, Division President and CEO, Coca-Cola
India said, “We are proud to win this coveted award. At Coca-Cola we are committed to
preserve, protect and enhance the environment and this simple belief guides us in
everything that we do. We will continue to further improve our systems and are
confident of making a significant positive impact on our environment in times to come.”  
The award will be formally presented to the company shortly by Institute of Directors, an
independent body that recognizes the achievements of manufacturing units under the
categories of Environment, Quality and Corporate Governance, in association with
World Environment Foundation (WEF), at an official function during the 6th World
Congress on Environment Management. 
The Dasna plant achieved this distinction by adhering to The Coca-Cola Company’s
internal global quality program called The Coca-Cola Quality System (TCCQS). TCCQS
not only covers environment management, but also takes into consideration other
business aspects such as safety and loss Prevention (SLP), product quality, packaging
quality, process capability improvement and customer satisfaction.

Strict compliance with TCCQS, often rated as a programmed equivalent to the

internationally reputed ISO 14001 System, has also enabled all the company-owned
bottling plants in the country to successfully get the coveted ISO 14001 Certification

41
from Det Norske Veritas (DNV). 
 
The award has been granted after a thorough evaluation of Dasna plant’s compliance
with a WEF prescribed program assessment format over a period of 1 year from 1st
April 2003 to 31st Mach 2004 during which several environmental performance
indicators were monitored and evaluated according to WEF’s stringent parameters:
energy use, water use, wastewater discharge, compliance with Government regulations
and resource utilization.
GPEMA has been instituted by the Institute of Directors in association with World
Environment Foundation (WEF) and is designed to encourage and recognize effective
implementation of environment management system. The award is given both in
manufacturing and service sectors.  
 
 All India Division COBO’s are now ISO 14001 Certified  

 All 25 of the India Division’s Company-owned bottling plants have gained the
international standard ISO 14001 Environment Management System certificate.

 The ISO 14001 certificate is the internationally recognized standard of

Environmental Management. 
 A company must demonstrate management commitment, the total involvement of
all employees and a compliance with applicable regulatory and internal company
standards. 
 The Company started its compliance effort in February  

42
 THE COCA-COLA PROMISE

The coca-cola company exists to benefits and refresh every one it touches. The basic
proposition of our business is simple , solid and timeless . when we bring refreshment ,
value , joy and fun to our stakeholders then we successfully nurture and protect   our
brand , particularly coca-cola . that is the key to fulfilling our ultimate obligation to
provide consistently attractive to the owner so four business. 

More than a billion times every day , 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
world-wide , yet distinctively local , network of bottling partner ,  supplier , distributor 
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 good and services, and local business partnership. Always and
every where , we pursue  continuous innovation in the products we offer the processes
we use to make them, the package we develop and the way we bring them  to market . 
 

1. The world’s largest spherical coca-cola sign is in Nagoya, Japan a top the dial –
Nagoya building in front of the Nagoya railway station. The sing is a double
sphere constructed from more than 46 ton of steel, more 940meter of neon

43
 tubing, and more then, 879 light bulbs. The outer shape features the coca-cola
logo and contour bottle, while the inner sphere portrays a comic scene with
twinkling planets and stars.  

2. One of the world’s largest signs for coca-cola is located on a hill called
“ELHACHA” in America, Chile. It is 400 feet wide and 131 feet high and is made
from 70,000, 26 ounce bottles.  

3. The first out door paint sign advertising coca-cola still exists. It was painted in
1894 in Cartersville, Georgia.  

4. Coca-cola is one of the world’s most recognizable trademarks recognized in

countries that account for 98 percent of the world’s population.  

5. If all the coca-cola ever produced were in 8- ounce bottles. And these bottles
were distributed to each person in the world. There would be 678 bottles or over
42 gallons for each person.  

6. If all the coca-cola ever produced were in 8 – ounce bottles, placed side by side
and end to end to from a lane highway, it would wrap around the earth 82 times.  

7. If all the coca-cola ever produced were flowing over Niagara fall at its normal rate
of 105 million gallons per second instead of water, the falls would flow for about a
day and a half 38 hours and 46 minutes.

 ADVERTISEMENT AGENCY 

           In the year 1991, coca-cola went for more creative advertisements and split the $
200million ad account between Mr. CAAN ERICKSON and CREATIVE ARTIST
AGENCY (CAA) presently howler. Chaitra leo burnett handles the coke’s account.  

India scenario: Managing the ad account earlier with a very creative desirer ting,
McCann Erickson managing the to bring out the coca-cola ad watchers with an Annus

44
Indies” description for the year 1988 – the year that the Atlanta brand started moving on
the thesis that………….  In the once thunder struck and then choice arm’s reach.

Or getting wall to look red but also about getting the brand’s massage right through the
cortex onto the mind the young India mind.

SOFT DRINK MARKET INDIA SCENARIO

                    India soft drink industry is witnessing a boom time. Its growth rate is around
20% with which such growth rate, volume could reach billion crates within 10 years.
Three major multinational companies are fighting to grab a major chunk of business
from Indian markets. These three coca-cola, Pepsi, Cadbury. All of these companies
have seen an enormous potential in this country. Consequently, by world standard,
Indian per capita consumption of soft drinks is still very low.  

   Therefore these soft drinks grants feel that fire capita consumption can only grow up.
Soft drink industries has already seen and estimated sale of around 240 million crates
higher than last year’s sale of 204 million in 1998. The Main reason for such a high
growth rate heightened competition between coca-cola and Pepsi, Cadbury, bring a
new entrant is for behind.     

              India is actually more vivid in taste and preference than any other country
market. Delhi jar instance, account for about 20% of total soft consumption in term of
sales.             

              There are about 4, 80,000 soft drinks retailers in India and their numbers are
increasing day to day. This actually means that there is just one soft drink retailer on a
population of 37,600, which is far below the international standard.  Whereas
Philippines has one soft drink retail counter over a population of 150 people i.e. 4,
00,000 outlet on a population of 60 million.      
 

45
BRAND COMPETITION 

There are number of brands of soft drink in the market of various companies. Various
brand competitors of COCA-COLA & PEPSI are as under in the following table- 

SI. No. Brand of COCA-COLA Brand of PEPSI

1. Coca Cola Pepsi

     2. Thums Up 7 Up
     3. Sprite Mountain Dew
     4. Limca Pepsi
     5. Fanta Miranda
     6. Mazza Slice
     7. Kinley (water) Aquafina (water)
 
   

46
  
 

47
 REASONS OF BRAND PREFERENCE

   There are number of reasons on the basis of which our customers’ select various
brand of their taste. Some of the major factors are as following:

 Taste
 Brand
 Advertisement
 Price
 Availability
 Coldness

48
 Here are some famous faces that endorsed Coke:

CHANGING OF LOGOS DESIGN OVER PERIOD OF TIME

49
 

50
 The Cola Wars

Over a Century of Cola Slogans, Commercials, Blunders, and

Coups
There's little doubt that the most spirited and intense competition in the beverage world
is between Coca-Cola and Pepsi. These two American companies long ago took their
battle worldwide, and although there are other colas in the market, these giants occupy
this high-stakes arena by themselves. The impact of Coke and Pepsi on popular culture
is indisputable, and I have observed in my time managing this web site that America
has not become jaded about the cola wars. The memorabilia, the jingles, the trivia - all
still popular. So I am offering this page in an attempt to assuage a wee bit of the Coke
and Pepsi thirst that is thriving on our planet.
IT ALL STARTED . . . .
Coca-Cola was invented and first marketed in 1886, followed by Pepsi in 1898. Coca-
Cola was named after the coca leaves and kola nuts John Pemberton used to make it,
and Pepsi after the beneficial effects its creator, Caleb Bradham, claimed it had on
dyspepsia. For many years, Coca-Cola had the cola market cornered. Pepsi was a
distant, non threatening contender. But as the market got more and more lucrative,
professional advertising became more and more important. These soda companies
have been leading the way in advertising ever since.

ADVERTISING HISTORY & COMMERCIALS:

Pepsi has definitely leaned towards the appeal of celebrities, popular music, and young
people in television commercials, while Coke relies more heavily on images of
happiness and togetherness, tradition, and nationalism, perpetually trying to cash in on
its original lead. In a simplified sense, you could sum up the strategies as Coke: Old,
Pepsi: New. In fact, as we will see, when Coca-Cola tried something new, it was
disaster.

51
The first magazine ad for Coca-Cola appeared in Munsey's in 1902. Advertisements
began to appear on billboards, newspapers, and streetcars. Soon there were serving
trays with images of people enjoying Coca-Cola, and glasses with the cola's name on
them. At this time, Coca-Cola and Pepsi were served in drugstore soda fountains.
In 1909, Pepsi used its first celebrity endorser, automobile race driver Barney Old-field,
in newspaper ads. In 1921, Pepsi went bankrupt, but continued to appear on the scene,
although not nearly so successfully as Coca-Cola. In 1931, Pepsi went bankrupt again,
but the new owner, Roy Megargel, would hit upon an idea that would finally give Coca-
Cola some competition. In 1934, he marketed Pepsi in a 12-ounce bottle for a nickel. At
the time, Coca-Cola was sold in a 6-ounce bottle for ten cents. Voila! Profits for Pepsi.
Pepsi racked up another first by airing the first radio jingle in 1939. It was so popular
that it was played in jukeboxes and became a hit record Coca-Cola hit the airwaves in
1941. In 1946, inflation forced Pepsi to increase prices. And in 1950, Pepsi offered a
larger 26-ounce bottle to court the young American housewife.
In the 1960's, the cola ad wars moved to television. Coca-Cola employed a host of
celebrity singers to promote the product, including Connie Francis , Tom Jones, The
New Beats, Nancy Sinatra, and The Supremes. As we moved through the years, both
colas incorporated some of their best slogans ("Pepsi Generation" and "the Real Thing")
into subsequent commercials.
In the 1970s, market research showed that consumers preferred the taste of Pepsi over
Coke. The Pepsi Challenge is still being conducted today. But Coke came up with what
is arguably the best of all cola commercials, the 1971 I'd Like to Buy the World a Coke
ad. This landmark was recalled in Christmas versions in 1983 and 1984, and a 1990
Super Bowl ad, which was enough to make some Baby Boomers weep with nostalgia.
In the 1980's, Pepsi lined up the celebrities, starting with Michael Jackson, then
Madonna, Michael J. Fox, Billy Crystal, Lionel Ritchie, Gloria Estefan, Joe Montana, and
others. Coke signed on Michael Jordan, New Kids on the Block, Aretha Franklin, Elton
John, and Paula Abdul.
In 1985, responding to the pressure of the Pepsi Challenge taste tests, which Pepsi
always won, Coca-Cola decided to change its formula. Bill Cosby was the pitchman.
This move set off a shock wave across America. Consumers angrily demanded that the

52
old formula be returned, and Coca-Cola responded three months later with Classic
Coke. Eventually, New Coke quietly disappeared.
Pepsi, meanwhile, had its own flop, Crystal Pepsi, which was supposed to catch the
strange wave of the times when everything colorless was clean and desirable (Zima,
bottled water). And then there was Pepsi Lite with the lemony flavor and one calorie,
introduced in 1975. Remember that one? Apparently they didn't expect us to because
later they gave us Pepsi One, using the same concept, but a completely different taste.
And, extending the idea even further, we are now getting Pepsi Twist, a new product
with a twist of lemon flavor.
In 1991, Ray Charles sang, "You got the right one baby, uh-huh!" Also in the 1990s,
Cindy Crawford and the Spice Girls pitched Pepsi. And then Pepsi aired commercials
featuring the aggravating little girl (Hallie Eisenberg) with her troubling male voice.
In the new century, both colas continue to battle it out on the television screen. And
celebrities continue to be important promoters.
Recently, Pepsi has had commercials by Bob Dole
and Faith Hill, among others.

CONTROVERSY ON PRESENCE OF
PESTICIDES

In 2003 and again in 2006, the Centre for Science

and Environment (CSE), a non-governmental
organization in New Delhi, claimed that soda
drinks produced by manufacturers in India,
including both Pepsi and Coca-Cola, had dangerously high levels of pesticides in their
drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe
for consumption and have published newspaper advertisements that say pesticide
levels in their products are less than those in other foods such as tea, fruit and dairy
products.

53
 PEPSI’S MARKETING STRATEGIES

Pepsi’s approach is radically different from that of Coke; Pepsi has gone in for
concentration segmentation. Pepsi has targeted the youth segment instead of trying to
be something to all segments.
Pepsi has since beginning strove to achieve its international position as `a drink
for the new generation’ in India. Helped by HTA’s forceful visuals and creative, Pepsi
has been successful in positioning itself for the younger generation.
SELLING PROCESS:
Pepsi has a very well managed selling system. It takes as lot of care to ensure
that the products (Pepsi bottles) are available to the consumers.
Pepsi soft drinks are produced in our plant in different SKUs (Stock keeping
units) and distributed to our distributor and they further supply to the retailer. Sahibabad
(GZB) has been divided around 14 routes which are called direct routes. For every route
there is a Route Agent. Route Agent moves with the company owned truck and ensure
that maximum shops are covered each day, so that regular supply of Pepsi soft drinks is
made. Route agents take the order from the shopkeepers and then with the help of
loaders they give the required number of crates to the
retailer or shopkeeper & then move to next.
Our plants also have some agency in each rout.
They supply in the areas where Pepsi’s trucks are not
able to reach. These areas are called indirect-routes.

54
MARKETING STATEGIES OF COCA- COLA

a) PRODUCT
Coke was launched in India in Agra, October 24, in '93', soon after its
traditional all Indian launch of its Cola. At the sparking new bottling plants at Hathra
near Agra. Coke was back with a bang after its exit in 1977. Coke was planning to
launch in next summer the orange drink, Fanta-with the clear lemon drink, sprite,
following later in the year.
Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Maaza, Sprite, Club Soda,
7-up,Limca,Fanta apple, Diet Coke.

PACKAGING
Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and
different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. And
bottles of 1 and 2 litre.

PRODUCT POSITIONING
One important thing must be noticed that Thumps Up is a strong brand in
western and southern India, while Coca Cola is strong in Northern and Eastern India.
With volumes of Thumps up being low in the capital, there are likely chances of Coca
Cola slashing the prices of Thumps Up to Rs. 5 and continue to sell Coca Cola at the
same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in
comparison to Pepsi which has just one.

Thumps Up accounts for 40% of Coca Cola Company’s turn over, followed by Coca
Cola which has a 23% share and Limca which accounts for 17% of the turn over of the
company. We will sell whatever consumers want us to". Coca Cola India has
positioned Thumps up as a beverage associated with adventure because of its strong
taste and also making it compete with Pepsi as even Pepsi is associated with adventure
youth.

55
b) PRICE
The price being fixed by industry, leaving very little role for the players to play in
the setting of the price, in turn making it difficult for competitors to compete on the basis
of price.
The fixed cost structure in Carbonated Soft Drinks Industry, and the intense competition
make it very difficult to change or alter the prices. The various costs incurred by the
individual companies are almost unavoidable. These being the costs of concentrates,
standard bottling operations, distributor and bottlers commissions, distribution expenses
and the promotional and advertising expenditure (As far as Coke is concerned, it had to
incur a little more than Pepsi as Pepsi paved its way to India in 1989 while Coke made a
comeback in 1993.)
Currently a 300 ml. Coke bottle is available for Rs10 the 330 can was initially
available for Rs. 15 and now Rs.20. The prices of 500 ml, 1 litre. And 2ltr being Rs20
Rs.35 and Rs.50 respectively (according to the current survey).
c) PLACE
Coke may have gained an early advantage over Pepsi since it took over
Parle in 1994. Hence, it had ready access to over 2, 00,000 retailer outlets and 60
bottlers. Coke was had a better distribution network, owing to the wide network of
Parley drinks all over India. Coke has further expanded its distribution network.
Coke and its product were available in over 3, 00,000 outlets (in contrast
with Pepsi's 2, 75,000). Coke has a greater advantage in terms of geographical
coverage.
Coke and Pepsi have devised strategies to get rid of middlemen in the
distribution network. However, 50% of the industry unfortunately depends on these
middlemen. As of now, around 100 agents are present in Delhi. Bottlers of the 2
multinationals have strongly felt the need to remove these middlemen from the
distribution system, but very little success has been achieved in doing so.
d) PROMOTION
It must be remembered that soft drinks purchases are an "impulse buy low
involvement products" which makes promotion and advertising an important marketing
tool. The 2 arch rivals have spent a lot on advertising and on promotional activities.

56
 According to Paul Stobart, Advertising encourages customers to recognize the
quality the company offers. Price promotions often produce short-term sales increases.
Coca Cola has entered new markets and also developing market economics (like India)
with much-needed jobs.

57
 STRATEGIES ADOPTED
BY COCA COLA AND PEPSI

The Pepsi Process: Despite being a global brand, Pepsi has built its success on
meeting the Indian consumer’s needs, particularly in terms of making the brand
synchronize with localized events and traditions. Instead of harping on its global
lineage, ergo, it tries to plug into ethnic festivals, use the vernacular indifferent part of
the country, and blend into the local fabric. Pepsi is using both national campaigns-such
as the Drink Pepsi, Get Stuff scheme, which offers large discounts on other products to
Pepsi-buyers as well as local.
The Coca cola Copy: Instead of creating a bond with the customers through small but
high-impact events, Coca-Cola chose to associate itself with national and international
mega events like the World Cup Cricket, 1996, and world cup football 1998. But now
coke is also entering into local actions. Coke is also trying to make their brand
synchronize with localized events traditions and festivals. Coca-Cola new tag line in
this advertisement is “Real shopping, Real refresher”. In this way Coke is copy Pepsi.

EMPOWERMENT:
The Pepsi Process: Once of the strongest weapons in Pepsi’s armory is the flexibility it
has empowered its people with. Every manager and salesperson has the authority to
take whatever steps he, or she, feels will make consumers aware of the brand and
increase its consumption.
The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need
for approvals from Atlanta for almost everything. In the past, this has shown up in its
stubborn insistence on junking the franchisee network it had acquired from Parle; in its
58
dependence on its own feedback mechanism over that of its bottlers;’ and on its
headquarters-led approach.
PRICE
The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation to
sample, aiming to turn trial into addiction. It launched the 500 ml bottle in 1994 at Rs. 18
versus Thums Up’s Rs. 9, in April, 1996, its 1.5 litre bottle followed Coke into the
marketplace at Rs. 30 – Rs 5 less than Coke’s .But it couldn’t continue the lower price
positioning for long.
The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml cans
in January 1996, at an invitation price of Rs. 15 before raising it to Rs.18. By this time, it
had realized that the Coca-Cola brand did not hold enough attraction for customers to
fork out a premium.

From the above picture we can observe that from origin itself Pepsi Company has been
changing its Logos but Coke Company has not at all changed its Logo form the
beginning. From this we can understand that Pepsi Company has been trying to create
some place in a differently with its new Logos where as Coke Company tried to fix the
same Logo as brand name. Previously the name of Pepsi is Pepsi-Cola, and now it is
changed to Pepsi. The reason for changing the Logos of Pepsi continuously was it
merged many of the largest Food Companies with Pepsi like Tropicana, Fritos Lay and
Galaxy Co. and etc. every time when merged with any Company it changed its Logos,
because of this reason Pepsi became the largest food based products producer in the
world. Coke Company is confined to the soft drink production only. As Coke Company
has not changed its Logo, it is totally fixed in the minds of the people of the world. The
people of the world have somewhat confusion on the Logo of Pepsi Company as it
changed its Logos Continuously.
Even though Pepsi Company changed its Logos continuously, it has not changed its
slogans that much frequently. But in case of Coke Company, it has not at all changed its
Logo but changed its slogans very frequently, sometimes thrice and trice’s a year. From
this it is concluded that Pepsi Company tried to create a brand image of the Company in
the minds of the customers using its different Logos but the same Slogans about the
products. But in case of Coke Company it tried to create a brand image of the Company
59
with the same Logo and different Slogans about the products. In this manner the two
giant Companies in the soft drinks industry compared and differentiated with each other.
This cola wars became very common to the soft drink Companies. Soft drinks became a
part of everyday life of the people in all over India and other countries of the world. The
pop culture has made resisting the temptation of sugar based carbonated beverages
virtually impossible for most. The soft drink war between Pepsi and Coke keep on going
and increasing day by day. They are using the different techniques to attract the
customers towards their products mainly the cola products. The cola products are:

Pepsi Coke
Pepsi Coca-Cola
Thumps up
Coke Company has the two cola brands, whereas Pepsi has only one brand of
cola. Pepsi Company is using excellent marketing strategies, such as celebrity
appearances to sell their products where as Coke’s realistic approach has placed them
at the top of the soft drink industry, mainly in the case of cola sales. We can observe the
cola war through the Advertising of the two companies in the television. They prepare
the Ads to compete with one another. They will hire the famous persons and the
celebrities for their Ads. They will invest lots of amount on advertising. Through the
advertising only the sales of the soft drinks are in creased. Even though Pepsi trying to
get the No-1 place in the soft drinks industry the statistics have shown that they are not
able to get that position when compared to Coke Company for the past few years.
In case of Advertising Pepsi dominated Coke because most of the customers are
attracted toward the Pepsi Company’s Ads only not to the Coke Company’s Ads
because Pepsi is spending more on advertising preparation when compared to Coke
Company. Pepsi Company is using the famous celebrities when compared to Coke
Company and this increases the influence of the advertising on the customers. Both
companies are conducting their operations successfully in more than 200 countries in
the world. The war is going on in every country all over the world. Pepsi changed its
Logos frequently 9 times from its origin but Coke Company has not at all changed its
Logos, this is a great thing that we can observe.
60
 PRODUCTS OF THE COMPANY

  Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most  recognized

and admired trademark around the globe. Not to mention the best
selling soft drink in the world.                      

Sprite:  In 1961, a citrus-flavored drink made its U.S debut, using “Sprite Boy “as
inspiration for its name. This elf with silver hair and a big smile was used in
1940s advertising for Coca-Cola. Sprite is now the fastest growing major soft
drink in U.S and the world’s most popular lemon-lime soft drink.        

Fanta :  The name “fanta “ was first registered as a trademark in Germany in

1941 ,when it was used for a few year for a soft drink  created from available
materials and flavors . The name was then revived in 1955 in Naples, Italy, when
it was used for the:” fanta “orange drink we know today. It is now the trademark
name for a line of flavored drinks around the world. 

Diet coke:   The extension of the coca-cola name began in 1982 with the
introduction of diet coke (also called coca-cola light in some countries). Diet coke
quickly become the number – one selling low –calorie soft drink in the world.

BRAND IN INDIAN ORIGIN

GOLD SPOT:  this orange carbonate soft drink was introduced in the early
1950c, and acquired by the coca-cola company in 1993, its tangy taste has been
popular with Indian teenagers

LIMCA:  It is thirst-quenching beverage features a fresh and light lemon-lime

taste and lighthearted attitude. The limca brand was introduced in 1971 and
acquired by the coca-cola company in 1993.

61
MAAZA: Maaza, launched in 1984 and acquired by the coca-cola company in
1993, is a non carbonated mango soft drink with a rich, juice & natural mango
taste.

THUMPS UP: in 1993, the Coca-Cola company acquired this brand, which was
originally introduced in 1977. Its strong and fizzy taste makes it unique
carbonated Indian cola.

BRAND IN INDIAN MARKET 

62
 

63
 Here are some of Coke's biggest brands — 15 of them
have reached $1 billion or more in retail sales

64
  

Though Pepsi's beverage brands may not be as strong, its snack food
business is enormous:

65
STRATEGY ADOPTED BY COCA-COLA TO INCREASE

THE NUMBER OF CONSUMERS

66
 
The 3 A's is the underlying strategy for meeting company goals to increase no. of
consumers. The 3 A's are: -

 Availability:

To increase the availability of Coca-Cola products in an improved or innovative new

Packaging, dispensing systems, distribution systems, marketing programs and training
and development programs.  

 Affordability:

The consumer can afford the Coca-Cola products at a very reasonable price. 

 Acceptability:

Making Coca-Cola brand is the beverage choice for any occasion depends on the
likings, taste and preferences of the target audience. Acceptability can also be
increased through advertising, sponsorships, promotions; youth market activities,
community programs and other activities. 
 

Your health and our beverages

There is growing confusion about what constitutes a healthy diet.  With so much
conflicting information available about health and nutrition, it can be very difficult to
determine what is accurate and what is not.

The truth is that soft drink and beverages have a place in a healthy lifestyle. A healthy
diet incorporates the basic principles of variety, balance and moderation without
sacrificing enjoyment.  

health and our beverages --- the facts 

 Soft drinks do not contribute to diabetes.

67
  The caffeine and phosphoric acid in soft drinks does not affect bone health
 The sugar in soft drinks does not cause children to be hyperactive.
 The consumption of soft drinks has not affected calcium consumption.
 Sugar consumption has not been shown to cause obesity.
 The amount of sugar and calories in soft drinks is about the same as many fruit
juices

  
  COCA-COLA INDIA- Mission, Vision & Values

 The world is changing all around us. To continue to thrive as a business over the next
ten years and beyond, we must look ahead, understand the trends and forces that will
shape our business in the future and move swiftly to prepare for what's to come. We
must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a
long-term destination for our business and provides us with a "Road map" for winning
together with our bottling partners.

Our Mission
Our Road map starts with our mission, which is enduring. It declares our purpose as a
Company and serves as the standard against which we weigh our actions and
decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference

Our Vision
Our vision serves as the framework for our Road map and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.

 People: Be a great place to work where people are inspired to be the best they
can be
68
  Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people’s desires and needs
 Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value
 Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities
 Profit: Maximize long-term return to share owners while being mindful of our
overall responsibilities
 Productivity: Be a highly effective, lean and fast-moving organization

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to
make our 2020 Vision a reality.
Live Our Values
Our values serve as a compass for our actions and describe how we behave in the
world.

 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it’s up to me
 Passion: Committed in heart and mind
 Diversity: As inclusive as our brands
 Quality: What we do, we do well

Focus on the Market

 Focus on needs of our consumers, customers and franchise partners

 Get out into the market and listen, observe and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious

69
Work Smart

 Act with urgency

 Remain responsive to change
 Have the courage to change course when needed
 Remain constructively discontent
 Work efficiently

Act Like Owners

 Be accountable for our actions and in actions
 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve problems
 Learn from our outcomes -- what worked and what didn’t

Be the Brand

 Inspire creativity, passion, optimism and fun

      SWOT analysis of Coca Cola:

SWOT

Coca Cola SWOT analysis 2013

Strengths Weaknesses

1. The best global brand in the world 1. Significant focus on carbonated

in terms of value ($77,839 billion) drinks
2. World’s largest market share in 2. Undiversified product portfolio
beverage 3. High debt level due to acquisitions
3. Strong marketing and advertising 4. Negative publicity
4. Most extensive beverage
70
 distribution channel 5. Brand failures or many brands with
5. Customer loyalty insignificant amount of revenues
6. Bargaining power over suppliers
7. Corporate social responsibility

Opportunities Threats

1. Bottled water consumption growth 1. Changes in consumer preferences

2. Increasing demand for healthy 2. Water scarcity
food and beverage 3. Strong dollar
3. Growing beverages consumption 4. Legal requirements to disclose
in emerging markets (especially negative information on product labels
BRIC) 5. Decreasing gross profit and net
4. Growth through acquisitions profit margins
6. Competition from PepsiCo
7. Saturated carbonated drinks
market

Strengths

1. The best global brand in the world in terms of value. According to Interbrand, The
Coca Cola Company is the most valued ($77,839 billion) brand in the world.
2. World’s largest market share in beverage. Coca Cola holds the largest beverage
market share in the world (about 40%).
3. Strong marketing and advertising. Coca Cola’ advertising expenses accounted
for more than $3 billion in 2012 and increased firm’s sales and brand recognition.
4. Most extensive beverage distribution channel. Coca Cola serves more than 200
countries and more than 1.7 billion servings a day.
5. Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
6. Bargaining power over suppliers. The Coca Cola Company is the largest
beverage producer in the world and exerts significant power over its suppliers to
receive the lowest price available from them.
7. Corporate Social Responsibility (CSR). Coca Cola is increasingly focusing on
CSR programs, such as recycling/packaging, energy conservation/climate change,
active healthy living, water stewardship and many others, which boosts company’
social image and result in competitive advantage over competitors.

Weaknesses

71
1. Significant focus on carbonated drinks. The Coca Cola Company is still focusing
on selling Coke, Fanta, Sprite and other carbonated drinks. This strategy works in
short term as consumption of carbonated drinks will grow in emerging economies but
it will prove weak as the world is fighting obesity and is moving towards consuming
healthier food and drinks.
2. Undiversified product portfolio. Unlike most company’s competitors, Coca Cola is
still focusing only on selling beverage, which puts the firm at disadvantage. The
overall consumption of soft drinks is stagnating and Coca Cola Company will find it
hard to penetrate to other markets (selling food or snacks) when it will have to
sustain current level of growth.
3. High debt level due to acquisitions. Nearly $8 billion of debt acquired from CCE’s
acquisition significantly increased Coca Cola's debt level, interest rates and
borrowing costs.
4. Negative publicity. The firm is often criticized for high water consumption in water
scarce regions and using harmful ingredients to produce its drinks.
5. Brand failures or many brands with insignificant amount of revenues. Coca Cola
currently sells more than 500 brands but only few of the brands result in more than
$1 billion sales. Plus, the firm’s success of introducing new drinks is weak. Many of
its introduction result in failures, for example, C2 drink.

Opportunities

1. Bottled water consumption growth. Consumption of bottled water is expected to

grow both in US and the rest of the world.
2. Increasing demand for healthy food and beverages. Due to many programs to
fight obesity, demand for healthy food and beverages has increased drastically. The
Coca Cola Company has an opportunity to further expand its product range with
drinks that have low amount of sugar and calories.
3. Growing beverages consumption in emerging markets. Consumption of soft
drinks is still significantly growing in emerging markets, especially BRIC countries,
where Coca Cola could increase and maintain its beverages market share.
4. Growth through acquisitions. Coca Cola will find it hard to keep current growth
levels and will find it hard to penetrate new markets with its existing product portfolio.
All this can be done more easily through acquiring other companies.

Threats

1. Changes in consumer tastes. Consumers around the world become more health

conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat. This is the most serious threat as Coca Cola is
mainly serving carbonated drinks.

72
2. Water scarcity. Water is becoming scarcer around the world and increases both
in cost and criticism for Coca Cola over the large amounts of water used in
production.
3. Strong dollar. More than 60% of The Coca Cola Company income is from outside
US. Due to strong dollar performance against other currencies firm’s overall income
may fall.
4. Legal requirements to disclose negative information on product labels. Some
Coca Cola’s carbonated drinks have adverse health consequences. For this reason,
many governments consider to pass legislation that requires disclosing such
information on product labels. Products containing such information may be
perceived negatively and lose its customers.
5. Decreasing gross profit and net profit margins. Coca Cola’s gross profit and net
profit margin was decreasing over the past few years and may continue to decrease
due to higher water and other raw material costs.
6. Competition from PepsiCo. PepsiCo is fiercely competing with Coca Cola over
market share in BRIC countries, especially India.
7. Saturated carbonated drinks market. The company significantly relies on the
carbonated drinks sales, which is a threat for the Coca Cola as the market of
carbonated drinks is not growing or even declining in the world.

SWOT analysis of Pepsi:

Company background

Name PepsiCo Inc.

Industries served Beverages, Food
Geographic areas served Worldwide
Headquarters U.S.
Current CEO Indra Nooyi
Revenue $ 65.492 billion (2012)

73
Profit $ 6.178 billion (2012)
Employees 297,000
The Coca-Cola Company, Dr Pepper Snapple Group, Inc.,
Mondelez International, Inc., Hansen Natural Corporation,
Main Competitors
National Beverage Corp., Kraft Foods Inc., The Kellogg
Company, ConAgra Foods, Inc., Nestlé S.A. and others.
PepsiCo is a world leader in convenient snacks, foods and beverages.

SWOT

PepsiCo SWOT analysis 2013

Strengths Weaknesses

1. Product diversity 1. Overdependence on Wal-Mart

2. Extensive distribution channel 2. Low pricing
3. Corporate Social Responsibility 3. Questionable practices (using tap
(CSR) projects water but labeling it as mountain
4. Competency in mergers and spring water)
acquisitions 4. Much weaker brand awareness
5. 22 brands earning more than $1 and market share in the world
billion a year beverage market compared to Coca-
6. Successful marketing and Cola
advertising campaigns 5. Too low net profit margin
7. Complementary product sales
8. Proactive and progressive

Opportunities Threats

1. Growing beverages and snacks 1. Changes in consumer tastes

consumption in emerging markets 2. Water scarcity
(especially BRIC) 3. Decreasing gross profit margin
2. Increasing demand for healthy 4. Legal requirements to disclose
food and beverages negative information on product labels
3. Further expansion through 5. Strong dollar
acquisitions 6. Increased competition from
4. Bottled water consumption growth Snyder’s
5. Savory snacks consumption
growth

Strengths

74
1. Product diversity. PepsiCo has several hundreds of brands, which include:
carbonated and noncarbonated drinks, water, savory and whole grain-based snacks.
Product diversification strengthens PepsiCo because it doesn’t have to rely on few
key products or seasonal sales and isn’t significantly affected by changes in
customer tastes.
2. Extensive distribution channel. PepsiCo products are served to more than 10
million stores per week in more than 200 countries.
3. CSR. The firm recognizes its role in a society and engages in education,
recycling, water usage reduction, obesity fighting and other projects through PepsiCo
Foundation, thus increasing its brand awareness and customer loyalty.
4. Competency in mergers and acquisitions. The key to PepsiCo growth is its
successful mergers and acquisitions of beverage, bottling and snacks companies.
PepsiCo acquired such brands as Gatorade, Tropicana, Doritos, Quaker Oats and
many others.
5. 22 brands earning more than $1 billion a year. The company doesn’t have to rely
on one or two of its product to bring most of the revenues. Instead, Pepsi has 22
brands that contribute significantly to its income, serving different industries and
satisfying various consumer tastes.
6. Successful marketing and advertising campaigns. More than $2 billion spent on
advertising over 2012 resulted in PepsiCo’s growing market share over its main
competitors, including Coca Cola Company, which spent even more on advertising.
7. Complementary product sales. In its annual financial report, PepsiCo revealed
one of its studies results that about 30% of customers who buy its snacks also buy its
beverages. PepsiCo’s decision to diversify its product range is firm’s competitive
advantage too.
8. Proactive and progressive. According to New York Times food industry writer
Melanie Warner, PepsiCo, by many critics, is considered to be most proactive and
progressive food company.

Weaknesses

1. Overdependence on Wal-Mart. More than 13% of PepsiCo revenues come from

Wal-Mart store chain. Wal-Mart has a significant buyer power and can easily dictate
prices over PepsiCo leaving it with very small margins. In addition, if PepsiCo would
lose Wal-Mart it would lose 13% of its revenue and competitive advantage.
2. Low pricing. PepsiCo usually prices its products lower than its competitors. Low
price is associated with low quality and PepsiCo products are usually perceived as
ones.
3. Questionable practices. PepsiCo is using and selling tap water but places view of
mountains on its water bottle labels, thus deceiving people that it is mountain spring
water when it is not. PepsiCo has also been criticized for using water in India with
higher than allowed amount of pesticides in it.

75
4. Weak brand awareness. The Coca Cola has the largest share market of
beverages in the world and much stronger brand awareness than Pepsi, placing it at
competitive disadvantage.
5. Too low net profit margin. PepsiCo’s net profit margin is 9.7% compared to Coca
Cola’s 18.55% and Nestlé’s 11%.

Opportunities

1. Growing beverages and snacks consumption in emerging markets. PepsiCo has

made large investments in BRIC countries to expand its market share as these
countries represent the fastest growing food and beverages markets in the world. If
PepsiCo is successful it will increase its revenues and global market share
significantly. In addition, it will be able to rely less on US market.
2. Increasing demand for healthy food and beverages. Due to many programs to
fight obesity, demand for healthy food and beverages has increased drastically.
PepsiCo has an opportunity to further expand its product range with beverages and
snacks that have low amount of sugar and calories.
3. Further expansion through acquisitions. So far, PepsiCo has been successful in
acquiring other companies and adding new growing brands to its portfolio.
4. Bottled water consumption growth. Consumption of bottled water is expected to
grow both in US (PepsiCo’s largest bottled water market) and the rest of the world.
5. Savory snacks consumption growth. The same opportunity PepsiCo has in
growing its revenue selling snacks as this market is also expected to grow.

Threats

1. Changes in consumer tastes. Consumers around the world become more health

conscious and reduce their consumption of carbonated drinks, drinks that have large
amounts of sugar, calories and fat.
2. Water scarcity. Water is becoming scarcer around the world and increases in
both cost and criticism for PepsiCo over the large amounts of water used for
production.
3. Decreasing gross profit margin. PepsiCo’s gross profit margin was decreasing
over the past few years and may continue to decrease due to higher water and other
raw material costs.
4. Legal requirements to disclose negative information on product labels. Some
researches show that particular ingredients, consumed in extra large quantities, in
some of PepsiCo products could cause cancer. For this reason, many governments
consider to pass legislation that requires disclosing such information on product
labels. Products containing such information may be perceived negatively and lose
its customers.

76
5. Strong dollar. More than 50% of PepsiCo’s income is from outside US. Due to
strong dollar performance against other currencies PepsiCo’s income should fall.
6. Increased competition from Snyder’s. Snyder’s increase its US savory snacks
market share by 1.6% and almost all of it was taken from PepsiCo.

77
 ECO

INTRODUCTION 
 

 In Coca-Cola India we have been implementing an environment management system -

Coca-Cola India EKO Management System - to be used as a tool to translate all the five
EKO policies into action in our day to day operation. The environmental management is
Institutionalized and integrated in annual business planning cycle by this EKO
management system. Views of all stakeholders including outside world are taken into
consideration while setting annual environmental objectives. The EKO Management
System ensures that all Coca-Cola associates assume responsibility in ensuring that
the environmental objectives/targets are met by constantly monitoring the environmental
performance and taking ongoing corrective action whenever necessary. 

A large part of our relationship with the world around us is our relationship with the
physical world. While we have always sought to be sensitive to the environment, we use
our resources and capabilities to provide active leadership on environmental issues,
particularly those relevant to our business. We want the world, we share, to be clean
and beautiful. The same spirit of innovation in bringing you different delicious beverages
comes alive in implementation of our environmental programs. 

Coca-Cola's existence in India or for that matter throughout the world is for refreshing
everybody that comes in contact with us. All our products live up to this expectation 100
%. What more positive environmental impact a product can have than creating
refreshed minds to take good care of environment?
78
As a leader in the beverage industry, Coca- Cola India and its business partners
introduced a series of innovation in the areas of production, distribution and marketing
like never before in India. 

We have been giving environmental considerations to all our business decisions right
from inception in India in 1993 like: 

 Environmental due diligence before acquiring land or starting projects.  

 Environmental impact assessment before commencing operations.  

 Ground water and environmental surveys before selecting sites.  

 Diligent compliance with all regulatory environmental requirements. 

 Since 1993, we have put a ban on purchase of refrigeration equipment

containing CFCs (Know to be Ozone depleting). We buy only non-CFC cooling
equipment even if at extra cost. 

 We have well equipped Waste Water treatment facilities manned by trained

personnel at all company owned bottling operations as a minimum requirement. 

 Every manufacturing plant has a designated Environmental Coordinator and an

active EKO Committee which meets every month. 

 Our plants comply with same stringent environmental and safety requirements in
plant design and layout to minimize possibility of accident of damage to
environment. Two major plants in India are rated to be Neutral PLP rating.  

 We have affected 50% water saving in last seven years of operations and 13% in
year 2001. Minimizing water wastage and implementation of recovery scheme is
the key.

 Several of our plants are zero discharge, utilizing water within premises only.
 We have rainwater harvesting done at a number of Plants.

79
  We have energy conservation programs at all plants. In one year alone, in past,

the monitory savings from these amounted to around Rs. 35 millions .

  

80
 ECO 

Impact & Opportunities 

We use the results of research and new technology to minimize the environmental
impact of our operations, equipment, products and packages, taking into account the
associated cost or profit for each environmental benefit. We minimize the discharge of
waste materials into the environment by employing responsible pollution prevention and
control practices. 
 

Environmentally Conscious Design 

Environmental implications are key factors in the decision-making process during the
design and development of new products, equipment, packages, processes and
facilities. 

Operations adhere to the Company's environmental requirements and applicable

environmental laws and regulations when designing or modifying products, equipment,
packages, processes, facilities and offices.

 
Operations seek opportunties to incorporate innovative environmental design principles
for maximum overall environmental benefit. 
Operations review capital projects for their potential environmental impact and take
action to address environmental issues.

Ongoing Environmental Improvement 

Operations follow the Company's Good Environmental Practice for Measuring and
Reporting Environmental Performance that requires:  

81
- Measurement of environmental impacts.  
 
- Setting goals for waste minimization and   cost savings, documents these in annual
business plans. 
 
- Implementing continuous improvement programs. 
The Company updates The Coca-Cola ecosystems to accommodate changing
technologies and environmental realities in consultation with environmental managers at
all levels of the system and external stakeholders. 
 

ECO     
COMMITMENT        

Our commitment to protecting and preserving the environment extends throughout our
organization. We believe that having effective environmental management systems
requires the involvement of employees at all levels. Our officers, managers and
employees assume responsibility for daily implementation of our Environmental
Management System. 

82
  Business Planning 

 Operations incorporate environmental management and commitment into their

annual business planning cycles.  
 Activities that will eliminate or minimize our impact on the local environment are
integrated into daily business considerations and operations.

Operations Personnel

Each Company group and division designates an environmental coordinator.  

Key Company support functions (Legal, Technical, Marketing, etc.) designate an
environmental coordinator as appropriate.  
 
Each plant designates a plant environmental coordinator.  
 
Operations management provides written descriptions of roles and
responsibilities for environmental coordinators, and evaluates their performance
annually 

 Operations Support

Operations management provides training to help personnel effectively

implement initiatives to meet all applicable requirements.  
 
Operations management ensures new employees receive an environmental
orientation.  
 
Individuals with operational environmental responsibility regularly improve their
environmental knowledge and expertise by participating in users, seminars,
meetings and other programs. 

83
 Company Support

The Company develops training programs to address system wide environmental

topics and provides guidance on implementation. 
 
The Company works with our bottling partners to help them implement, at a
minimum, The Coca-Cola EKO SYSTEM environmental management system.  
 
 
  

84
 RESEARCH
METHODOLOGY

85
   RESEARCH METHODOLOGY

Research as an activity is directed at “The Systematic search for pertinent

information on a topic”. Research is directed towards the solution of a problem.
Motivation for research comes from inquisitiveness & dissatisfaction. Research
emphasizes upon development of generalization, principles or theories that will
be helpful in predicting future occurrences. It adds something to existing
knowledge.
 
  
 Research Objectives:

1) To draw a comparative analysis of promotional schemes.

2) To know about sales of the coke products in the market.

3) To find out various strategies used by coke & Pepsi to capture more & more
market share.

4) To know about customer taste.

5) To study various promotional strategies used by coke & Pepsi. 

6) To overview the coca cola products image among competitors in

market.                                             

 
 Research Design:

Research design is Descriptive Research Design as it is undertaken when researcher

wants to describe something. For example: the characteristics of users of a given
product, the degree to which product use varies with income, age or other

86
characteristics to be of maximum benefit.

Method of Data Collection  :

 Secondary data through books, magazines, reports, journals, internet etc.

Secondary data are those which have already been collected by some other
agency & which have already been processed.
 
 
 
 
 

 
 
 
 
 
 
 

87
 DATA ANALYSIS
&
INTERPRETATION

88
DATA ANALYSIS & INTERPRETATION

1) On the basis of above data coke is leading with 60% market share.

Source- Company Reports, Thomson Reuters

89
  
 2) From the above graph we can conclude that in case of season, profitability &
demand of Pepsi is increasing comparatively higher than the Coke. Whereas in case of
off season profitability & demand of Pepsi is decreasing faster than Coke.

3)

90
 4) Accounting and Governance Risk Rating

The Coca-Cola Company is currently rated as having Aggressive Accounting &

Governance Risk (AGR). This places them in the 14th percentile among all companies
in North America, indicating higher accounting and governance risk than 86% of
companies.

91
Source: http://www.businessinsider.com/blackboard/coca-cola

5) From above we can conclude that Market share of Coca cola is 42% & Pepsi is
31%, annual revenue of Coca cola is $35.2B & Pepsi is $57.8B , Ad Spending of Coca
cola is $2B & Pepsi is $1.1B.
Source- www.businessinsider.com/blackboard/coca cola

92
6) Here are their stock values over the years. Pepsi's successful foray into the snack
food biz with Frito Lay have helped it significantly, especially in the past decade.
Meanwhile, Coke has stayed strictly in beverages.
Source: www.businessinsider.com/coca-cola-vs-pepsi-timeline-2013

93
94
FINDINGS

95
 FINDINGS

1) In case of beverages people are much influenced by taste rather than

advertisements & other things.

2) Young generation is the biggest consumer of cold drinks.

3) Coca Cola & Pepsi together control 97% of entire Indian markets. The
rest 35 is shared by companies like Cadbury Schweppes & Campa Cola.

4) Both the companies are spending heavily on advertisements & more

celebrities are roped in by both the companies to fight the competition.

5) Pepsi is targeting young generation & their ad campaigns are clear

example of that, whereas Coca Cola is targeting the family as a whole which
has been its selling formula from ages.

6) Presently Coca Cola may be leading in beverages like Coke but it is

facing severe competition from Mirinda, Nimbooz & snack industry where
Pepsi is ruling.

7) In packed drinking water Kinley (Coca cola brand) & Aquafina

(PepsiCo brand) both are treated equally by customers. Moreover Bisleri still
rules this segment.

96
Coca-cola vs. Pepsi: The Economics behind Coke’s dominance

97
RECOMMENDATIONS

98
 RECOMMENDATIONS

1) Innovations increase sales of the company. For e.g. Cans increased the
sales of Coca Cola. Thus companies should constantly come out with
innovative ideas. For e.g. 300ml plastic bottles which consumer can take
with him unlike glass bottles which he has to return. Plastic bottles can be
used again by households for various purposes.

2) Companies should conduct studies to get to know about consumer

habits. If companies know more about Indian consumer behavior, it could
tell them how to sell their drink, so as to increase their sales.

3) Companies should try to educate consumers about the health related

subject. For e.g.

a) Limca is recommended to patients by doctors.

b) Cola drinks contain no calories from fat, they contain calories from
sugar which can be easily burned off.

4) Companies should try to build high brand equity. This provides number
of advantages to the companies such as:

a) The company enjoys the reduced marketing costs because of high level
of consumer brand awareness & loyalty.

b) The company can more easily launch brand extension.

99
 5) The companies should go for diversification. Once the brand is known it
is easier to sell more of its products. For e.g. Coca cola have sold about
$100 million worth of clothes & accessories. This would increase revenue
of the company.

6) Advertising is a way of building brand image. It does not promote quick

selling. Thus company should use advertising for:

a) Brand image building.

b) Reminder advertising- reminding people to buy these drinks.

c) Reinforcement advertising- telling people that they have made the right
choice.

7) Sales promotion tools create a stronger & quicker response. Thus sales
promotion tools such as coupons, contests, premiums etc should be used
to dramatize product offers & to book sales.

8) It is recommended that company should introduce more customer

oriented schemes 7 contents. Foe e.g. Pepsi’s new campaign “Pepsi cool
mal” in which they are giving free gifts to their customers.

100
BIBLIOGRAPHY

101
 BIBLIOGRAPHY

BOOKS:-  

Research Methodology; C.R .Kothari; New age International publication.

Marketing Management, Philip Kotler;

WEBSITES:-

          www.cocacola.com

        www.slideshare.com

www.cola-wars.net

www.pepsicoworld.com

www.wikipedia.com

www.indianinfoline.com

102
APPENDIX

103
  

SOFT DRINK PREFERENCE QUESTIONNAIRE

1. Do you drink soft drinks? (Please put an ‘X’ in the appropriate box)
⃞1YES
⃞2 NO, if no, please return this questionnaire.

2. How many soda bottle do you drink per day?

_________ Sodas per day.

3 What is your sex?

 ⃞1 MALE
⃞2 FEMALE

4 What is your age?

⃞1 Less than 18
⃞2 18-24
⃞3 25-29
⃞4 30-34
⃞5 35-39
⃞6 >40

4. Please indicate you preferences among the following types of sodas by placing a “1” by
your most preferred soda, a “2” by your second most preferred soda, and a “3” by your least
preferred soda….
______ REGULAR COLA
______ DIET COLA
______ LEMON-LIME SODAS
______ CHERRY COLA
______ FRUIT SODAS (ORANGE, GRAPE…)

5. Please check your favorite brand of soda. (Only put an ‘X’ in one box.)
⃞1COCA-COLA

104
 ⃞2PEPSI
⃞3SEVEN-UP
⃞4 SPRITE
⃞5DR. PEPPER
⃞6NONE OF THE ABOVE

6 In the past month, have you consumed a soda with your breakfast?
⃞1 YES
⃞2    NO

105
7. Please indicate your level of agreement or disagreement with each of the following
statements:

Statement STRONGLY STRONGLY

DISAGREE AGREE
1. I understand the features of sodas well enough to
evaluate the brands.
1 2 3 4 5 6 7

2. I have a preference for one or more brands in the soft

drink class.
1 2 3 4 5 6 7

3. Soft drinks are a product for which I have no need

whatsoever.
1 2 3 4 5 6 7
4. I usually purchase the same brand within the soft drink
class.

1 2 3 4 5 6 7
5. If I received information that was contrary to my preferred
soft drink, I would still keep my preferred brand.

1 2 3 4 5 6 7
6. If my preferred brand of soft drink is not available at the
store, it makes little difference to me if I must choose
another brand.

7. My preferred brand of soft drink helps me attain the type 1 2 3 4 5 6 7

of life I strive for.

8. This soft drink helps me express the “I” and within myself.
1 2 3 4 5 6 7

9. I definitely have a “wanting” for soft drinks.

1 2 3 4 5 6 7

10. Most of the brands of soft drink are all alike.

1 2 3 4 5 6 7

1 2 3 4 5 6 7

106
 8. What is the price you normally pay for a 20oz soft drink bottle (vending machine size) ?
$ ____________ (please write-in the amount)

9. When I decide to purchase a soft drink at work or school, it is:

Not Readily Available ___:___:___:___:___:___:___:___:___ Readily Available

Inexpensive ___:___:___:___:___:___:___:___:___ Expensive

Poor Selection ___:___:___:___:___:___:___:___:___ Good Selection

10. What is the highest level of education completed?

⃞1 LESS THAN HIGH SCHOOL

⃞2 COMPLETED HIGH SCHOOL
⃞3 SOME COLLEGE
⃞4 COMPLETED COLLEGE
⃞5 SOME GRADUATE WORK
⃞6 A GRADUATE DEGREE

11. Which of the following best describes your racial or ethnic background?

⃞1 WHITE/CAUCASIAN
⃞2 BLACK or AFRICAN AMERICAN
⃞3 ASIAN or ASIAN AMERICAN
⃞4 HISPANIC
⃞5 OTHER (please specify) ___________________________________

107
 TASTE TEST RESULTS FORM
SUBJECT 2
 
BLINDFOLDED BLINDFOLDED NOT
LIKING SCORE GUESS BLINDFOLDED
LIKING SCORE
 
COKE _______________ _______________ _______________
 
DR. PEPPER _______________ _______________ _______________
 
GENERIC _______________ _______________ _______________
 (store brand)

SEVEN-UP _______________ _______________ _______________

 
 
 
 
LIKING SCORE:
 
I-----I-----I-----I-----I-----I-----I-----I-----I
1 2 3 4 5 6 7 8 9
Disliked Liked

108