CAPTER 2

LITERATURE REVIEW

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REVIEW OF LITERATURE

However a number of studies have been conducted in the form of surveys and research work
done on. Consumption pattern and Promotional strategiestowards soft drink product. An
attempt has been made to understand and acknowledge the work of various researchers in the
field of Promotional strategiesand consumption pattern of soft drinks.

          In their studies soft drink industry in India is one of the most competitive with many
international and domestic players operating in the market. Initially domestic player like pare
group dominated the Indian soft drink market. However with the re-entry of MNC players
like pepsin 1991 and coca-cola in 1993, the market took a decisive shift in favour of these
MNCs and over the years coca-cola and pepsi have become the prominent players in the
market.

                   Studies of soft drink market Indian soft drinks market grew 7.7% in 2008 to reach
a value of$3.4 billion. In 2013,the Indian soft drinks market is forecast to have a value of
$4.6 billion. An increase of 36.9% since 2008. All the major players in cola market put their
best strategies to capture more and more out of this lucrative progress. In the modern arena of
information, it takes something or someone special to please the consumer. A celebrity is
often considered to be the vital basis for the brand association of a product and this fact
becomes stronger when it comes to soft drinks industry in India. India is one country, which
has always idolized the stars of the celluloid world. Therefore in the words of Mccracken, a
celebrity endorser is someone who besides enjoying popularity and public recognition, uses
this recognition to promote a consumer good or service by appearing in the advertisements
for the same. It is not essential (rather it is seldom the case) that a celebrity in a particular
field promotes the products only in that particular domine. It is the credibility of the endorser
which helps in the repurchase or first time purchase of the product. It may be said that the
celebrity transfers some of his/her traits to the product or service (or atlest it is so perceived
by the customer). Even the studies conducted by Agrwal, Kamakura & Mathur and Mathur &
Ranjan, emphasized the effectiveness of using a celebrity endorsers. In India there is an
exponential potential for a celebrity endorsement to be perceived as genuinely relevant,
thereby motivating consumers to go in for the product. No wonder India’s and market which

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has an estimated worth of more than $3000 million consists of around 30% of spending on
ads featuring celebrities.

• With amplification in number of mass media option and competition for consumers
attention, cola giants are increasingly using celebrity endorsement strategies to break through
the clutter and enhance the equity for their brand. Although celebrity endorsement has
emerged as a popular advertising practice, not much research has been done to evaluate the
effectiveness of it in India. some of the facts which support the trend of celebrity
endorsement in general and across soft drinks market in India are:

• Celebrity endorsement advertisement on TV up 49% in 2007

• Pepsi ropes in Chiranjeevi Jr to take on thums up in AP Marketers overtly acknowledge the
power of celebrities in influencing consumer-purchasing decisions. It is an ubiquitiously
accepted fact that celebrity endorsement can bestow special attributes upon a product that it
may have lacked otherwise. Although celebrity advertising celebrity advertising for soft
drinks brands is popular in India. Little is known about its effectiveness in India. Thus the
primary motive behind this research project is to measure this effectiveness using some of the
existing scale and methodologies and try and establish the relationships which exist between
the attitude of the youths towards celebrity endorsement and their brand loyalty towards a
low involvement product soft drink brand while paying special attention on the personality
traits of the celebrity endorsing the soft drink brand. This should give us an insight into the
consumer behaviour in response to celebrity endorsement in case of carbonated soft drinks.

Every Research study is based on the theory. This theory is known as the theoretical
framework of the study. That means the theoretical framework gives authentic support for
successful completion of research work. One of the most competitive market in the world at
present is the soft drink market in which cores of rupees on advertisement and other
promotion activities are being spent. It is one of the many sectors, registering steady growth
over a hundred years throughout the world. In India the soft drink industry is flourishing well
with a wide range of brands comprising both popular-international, national and regional
branded soft drinks. In present investigation, the impact of globalization on Promotional
strategiesof soft drinks and the factor determining the Promotional strategiesare studied.

What is soft drink?

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 A non-alcoholic, flavour, carbonated beverage,usually commercially prepared and sold in
bottles or cans. Nonalcoholic beverage,usually carbonated, consisting of water (soda water),
flavoring, and a sweet syrup or artificial sweetener. Today there are hundreds of varieties of
flavored soft drinks. Coca-cola and pepsico are the world’s largest corporation founded their
business on soft drink manufacturing

Soft drinks can trace their history back to the mineral water found in natural spring.bathing in
natural springs has long been considered a healthy thing to do; and mineral water was said to
have curative power. Scientists soon discovered that gas arbonium or carbon dioxide was
behind the bubbles in natural mineral water.

The marketed soft drinks (non-carbonated) appeared in the 17th century. They were made
from water and lemon juice sweetened with honey. In 1679, the compagine delimonadiers
Paris were granted a monopoly for the sale of lemonade soft drinks.

Raw materials used in soft drinks

There are different type of raw materials used in different soft drinks. most of the raw
materials are :

Ø Water: the simple sweetened soft drink contains about 90% of water, while in diet drinks. It
contains 95% of water.

Ø  Flavor: flavor is of great importance in soft drink. Even water from different places has
different taste. The flavor for taste added can be natural or artificial, acidic, caffeine.

Ø  Acids: acids like citric acid & phosphoric acid are added to give refreshing tartness or bite &
help in preserving the guality of a drink.

Ø Natural flavors: these are the flavors, which are extracted from fruits, vegetables, nuts, barks,
leaves etc. in soft drink containing natural flavors& fruit juice.

Ø Artificial flavor: these are the flavors manufactured from natural extracts. This is used to give
greater choice, in taste to consumers.

Ø Caffeine: caffeine has special kind of taste makes the taste of soft drink a royal one.caffeine
was added to soft drink from its introduction to a commercial market but now caffeine free
soft drinks are also available. Its quality is Y4 than compared with same amount of coffee.

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Ø Carbon dioxide: carbon dioxide is a colorless & smell less gas, which is added to cold drink to
get bubble & it also help in keeping drink strong &fresh

Ø  Color: along with taste of soft drinks is also of very important, the company tries to maintain
both taste & colur of the soft drink every where in the world.

Ø Sugar:sugar syrup is added to the drink at around 75 degree C to the pure drinking water ,this is
to make soft drink taste sweet. Even artificial sweetness is also use

Distributions of soft drinks

The soft drinks can be distributed on the basis of two concepts.

I. Distribution according to taste

2. Distribution according to taste

Ø Distribution according to taste:the soft drinks can be distributed in cola&nonc ola taste. Non
cola taste consist of drink of orange, lime,mango etc. & clear lime.

Orange taste market is occupied by brands like fanta, mirinda orange&crush. Mango taste market
occupied by brands like slice, maaza and frooti. Cloudly lime taste is occupied by 7 up,
sprite. This is basically produced in green bottle as sunlight spoils the taste of the drinks.its
color is transparent like water.

Ø Distribution according to the consumption: 80% of soft drinks are drinks are consumed on the
spot, where it is sold at place like cinemas,railway stations etc. other 20% of the market of
soft drinks is consumed at home or other place

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TYPES OF SOFT DRINKS

FANTA

Fanta originated as a result of difficulties importing coca cola syrup into nazi germane during
world War II due to trade embargo. To circumvent this, max Keith, the head of coca cola
Deutschland(coca cola gmbh) during the second world war, decided to create a new project
for the German market, using only ingredients  available in Germany at the time including
whey and pomance – “leftovers of leftovers “ as Keith later recalled. The name was a result
of a brief brain storming section, which started with Keith ‘s exhorting his team to “use their
imagination (“fantasie” in German) to which one of his sales man, Joe Knipp, immediately
retorted “fanta”

The plant was effectively cut off from coca cola head quarters during the war. After the war,
the coca cola Corporation regained control of the plant, formula and trade mark to the new
fanta product as well as the plant profit during the war.

Fanta was discontinued when the parent company was reunited with the German branch.
Following the launch of several drinks by the Pepsi corporation in the 1950’s, coca cola
competed by relaunching fanta in 1955. The drink was heavily marketed in Europe, Asia,
Africa and South America.

SPRITE

Sprite is a colourless, lemon and lime flavoured, caffeine-free soft drink, created by the coca-
cola company. It was developed in West Germany in 1959 as FANTA KLARE ZITRONE
(“clear lemon fanta”) and introduced in the United States as sprite in 1961. This was coke’s
response to the popularity of 7 up. It comes in a primary silver, green, and blue can or a green
transparent bottle with a primarily green and blue label.

COCA-COLA

Coca-cola is a carbonated soft drink sold in stores, restaurant, and vending machines
throughout the world. It is produced by the coca-cola referred to simply as coke (a registered
trademark of the coca-cola company in the united states since march27, 1944). Originally
indented as a patent medicine when it was invented in the late 19 th century by John
Pemberton, coca-cola was brought out by businessman Asa Griggs Candler, whose marketing
tactics led coke to its dominance of the world throughout the 20th century.

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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
company, produce finished products in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell and merchandise coca-cola to retail
stores and vending machines. 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 coca 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. Inn 2013, coke products could be found in over 200
countries worldwide, with consumers downing more than 1.8 billion company beverage
servings each day.

PEPSI

Pepsi is a carbonated soft drink that is produced and manufactured by pepsico. Created and
developed in 1893 and introduced as brad’s drink, it was renamed as poepsi cola on aug 28,
1898 then to pepsi in 1961, and in select areas of north America, “pepsi-cola made with real
sugar” as of 2014.

The drink pepsi was first introduced as “Brad’s Drink” in New Bern,North Carolina, United
States, in 1893 by  Caleb Bradham, who made it at his drugstore where the drink was sold. It
was renamed pepsi –cola in 1898,named after the digestive enzyme pepsin and kola nuts used
in the recipe. The original recipe also included sugar and vanilla.Bradham sought to create a
fountain drink  that was appealing and would  aid in digestion and boost energy .

In 1903,Bradham moved the bottling of pepsi-cola from his drugs stores to a rented
warehouses that year, bradham sold 7968 gallons of syrup. The next year, pepsi was sold in
six-ounce bottles, and sales increased to 19848 gallons. In 1909, auto mobile race pioneer
Barney oldfield wasthe first celebrity to endorse pepsi cola,describing it as “A bully drink...
refreshing, invigorating, fibracer before a race”. The advertising theme “delishes and
healthful” was then used over to the next two decades. In 1926, pepsi received its first logo
redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the great depression, the pepsi-cola company entered brankruptcy in
large part due to financial losses incurred by speculating on the widely fluctuating sugsr

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prices as a result of World War I. Assets were sold and roy c. Megargel bought the pepsi
trademark.Megargel was unsuccessful, and soon pespi’s assets were purchased by  Charles
Guth, the president of Loft, inc. Loft was a candy manufacturer with retail stores that
contained soda fountains. He sought to replace coco-cola at his stores fountains after coke
refused to give him a discount on syrup. Guth then had lofts chemists reformulate the pepsi-
cola syrup formula.

On three separate occasions between 1922 and 1933, the coco-cola company was offered the
opportunity to purchase the pepsi-cola company, and it declined on each occasion.  

NATURE OF SOFT DRINK MARKET

Oligopoly

Indian soft-drink industry in an oligopoly market.coca-cola, Pepsi,parle agro etc

are the only producers.an oligopoly is a market dominated by a few large suppliers the degree
of market concentration is very high (i.e.a large % of the
market is taken up by the leading firms).firms within an oligopoly produce
branded product (advertising and marketing is an important feature of
competition within such markets) and there are also barriers to entry.

Another important characteristic of an oligopoly is interdependence between

firms. this means that each firm must take into accounts the likely reactions of
other firms in the market when making pricing and investment decisions. This
creates un certainty in such markets which economists seek to model through the use of game
theory.Economics in much is much like a game in which the
ayers anticipate one another’s moves.

By Promotional activities The ongoing interdependence between business can lead to implicit
and explicit collusion between the major firms in the market. Collusion occurs when business
agree to act as if they were in a monopoly position.

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  Key features of oligopoly market

Ø A few firms selling similar product

Ø Each firm produces branded products

Ø Likely to be significant entry barriers into the market in the long run which allows firms to
make supernormal profits.

Ø Interdependence between competing firms. Business have to take into account likely reactions
of rivals to any change in price and output.

Theories about oligopoly market

There are four major theories about oligopoly pricing:

1. Oligopoly firms collaborate to charge the monopoly price and get monopoly profits

2. Oligopoly firms compete on price so that price and profits will be the same as a
competitive industry

3. Oligopoly price and profit will be between the monopoly and competitive ends of the scale

4. Oligopoly price and profits are “indeterminate” because of the difficulties in modeling
interdependent price and output decisions

The several factors that make it very difficult for the competition to enter the soft drink

Market include

Barriers to entry:

Ø Cost of Establishment: Due to high capital intensive reguirement to establish new bottling
plants, investors cannot entry into the market. This financial barrier can be a major barrier for
new entrants

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Ø Advertising expenses

Ø Brand image and loyalty

Ø Retailers shelf space and retail distribution channel

Ø Threats of substititute

Ø Switching cost: switching cost of the substitute product is very low.so customers Can easily
switch to substitute products

Ø  Perceived price value: prerceived price value in this industry is very low because all products
comparatively same and most of the times differentiated
Major market players

The Disadvantages of Soft Drinks

Dehydration

Sixty percent of our boady weight is comprised of water,report mayo clinic.com. we lose
water when you sweat, urinate and breathe. For the body to continue functioning properly,we
must replace the lost water with ingested fluids.sodas are often consumed in the place of
water or other hydrating fluids. Many sodas contain caeffine,which acts as a diuretic,
increasing urination and leaving the body with less available fluid to carry out important
function.addftionally, some diet sodas contain significant amounts of sodium,which may
draw water from the cells and promote dehydration

High sugar content.

Many soft drinks contain significant quantities of sugar.one 12-ounce serving of cola,for
example, includes 39 grams,or 3.3 tablespoon, of sugar. Consuming such large quantities of
sugar elvates your blood glucose level and may increase your risk for cardiovascular disease.
Additionally, may sodas contain high fructose corn syrup or HFCS as their primary sugar
ingredient. HFCS may stress the pancreas and lead to fluctuating blood sugar levels.
Consuming sugary sodas day after day can contribute to the onset of non-insulin dependent
diabetes,or type 2 diabetes.

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Weight Gain

Weight gain result when you consume more calories than your body burns. A 12-ounce
serving of cola contains 140 calories, often called “empty calories” Because they provide no
nutritional value.drinking one can of cola a day for four Weeksis equivalent to ingesting
3,920 extra calories,or a gain of 1.1 pounds if the calories are not burned. A 160-pound
person must walk for 27 minutes at 3.5 miles per hour to burn off the calories in one can of
cola, according to the calorie-expenditure analysis provided by the MayoClinic.com. If these
calories are not burned, you may gain more than 12 pounds in one year. Additionally, sweet-
flavored sodas may disrupt appetite signals and promote cravings for other sugary foods.

Calcium Depletion

Calcium is an essential mineral for strong bones and teeth. Consuming high amounts of
phosphoric acid, a common ingredient in sodas, can deplete the calcium from your bones and
decrease calcium absorption. Among women, this may lead to poor bone development or
osteoporosis, a condition characterized by brittle and weak bones.

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 CHAPTER –III
COMPANY ROFILE

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INTRODUCTION FOR COCA COLA COMPANY

You may know The Coca-Cola Company.

... as the largest beverage company with the most extensive distribution system in the
world. You may know us simply as Coca-Cola--the world's most valuable brand and a global
icon.

The Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of
nonalcoholic beverage concentrates and syrups. Its world headquarters is based in Atlanta,
Georgia. The company and its subsidiaries employ nearly 31,000 people around the world.
The Coca-Cola Company manufactures syrups, concentrates and beverage bases for Coca-
Cola, the company’s flagship brand, and also produces over 230 other soft-drink brands sold
by and its subsidiaries in nearly 200 countries around the world. Some of Coca-Cola’s latest
domestic marketing strategies include Coke dominating fountain sales. Thousands of
consumers visit fast-food restaurants every day and Coke feels that it is very important to
have the consumer see and drink their product at such chains as McDonalds, Burger King,
and Domino’s Pizza. Coca-Cola is also testing a new plastic cup in the famous Coca-Cola.

Let us introduce you to The Coca-Cola Company you may not know.

The Coca-Cola system's customers are the grocers, retailers, street vendors and store owners
who sell our products to our consumers. We have millions of these partners in the more than
200 countries where we operate.

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today,
the company is the world's leading manufacturer in the beverage industry, operating globally
in more than 200 countries with its head office located in Atlanta, USA. It produces more
than 300 beverage brands and over 1.06 billion drinks are consumed per day around the
world.

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Mission Statement

The Coca-Cola Company's mission statement is:

'Remind Coca-Cola is the read thing' but their motto now has changed to 'To benefit and
refresh everyone who is touched by our business.'

Also Coca-Cola would hope to provide the best quality drink for everyone, all the employees
working for them being at their top and fullest.

Approximately 50 billion times a day, someone drinks a beverage. Our beverages are enjoyed
more than 1.3 billion of those times. That means there are over 48 billion beverage choices to
capture.

We built on our formidable assets: our brands, financial strength, unrivaled distribution
system and our people. And we have made progress toward sustainable growth.

We sharpened our focus on what the world wants to drink and why, and we continued our
efforts with local leaders to support communities around the world.

We have a lot of good news to share, and we're just getting started.

The Coca-Cola Company manufactures, distributes, and markets nonalcoholic beverage

concentrates and syrups worldwide. It principally offers sparkling and still beverages. The
company’s sparkling beverages include nonalcoholic ready-to-drink beverages with
carbonation, such as energy drinks, and carbonated waters and flavored waters.

Its still beverages consist of nonalcoholic beverages without carbonation, including non-
carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas,
coffees, and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups, and
concentrates, such as flavoring ingredients and sweeteners.

The company markets its nonalcoholic beverages under the Coca-Cola, Diet Coke,
Fanta, and Sprite brand names. The Coca-Cola Company also owns mineral water brands
Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa in Finland. It sells its
finished beverage products primarily to distributors, and beverage concentrates and syrups to

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bottling and canning operators, distributors, fountain wholesalers, and fountain retailers. The
company was founded in 1886 and is headquartered in Atlanta, Georgia.

The Coca-Cola Company's products include beverage concentrates and syrups, with the main
product being finished beverages.

The business has over 300 brands of beverages around the world with the main ones being
Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.

The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 liters,
1.25 liters, 600mL and 300mL. These are also available in aluminium cans of 375mL.

Coca-Cola is the most well known trademark, recognized by 94 per cent of the world's
population. The business is very successful and holds a very good reputation.

The Coca-Cola Company uses marketing strategies to differentiate its product from its
competitors to gain a competitive advantage. These are listed in the table below.

The Coca-Cola Company.

In 1886, we introduced Coca-Cola to Atlanta, Georgia. One product, a simple moment of

refreshment. In 120 years, a lot has changed. We now have more than 400 brands in over 200
countries.

The real story of The Coca-Cola Company lies in what we're doing today to build a
sustainable-growth business for tomorrow.

What does sustainable growth look like to us? In 2005, we mapped a long-term plan for our
business, Our Manifesto for Growth. It includes working closely with our bottling partners in
the following key areas:

People: We want to be a great place to work, where people are inspired to be the best they
can be.

Portfolio: We bring to the world beverage brands that anticipate and satisfy people's desires
and needs.

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Profit: We strive to provide maximum return to our shareowners while being mindful of our
overall responsibilities.

Partners: We actively nurture a winning network of partners and build mutual loyalty.

Planet: We act as a responsible global citizen who makes a difference.

Sustainable growth means meeting our short-term commitments while investing to meet our
long-term goals. We are beginning to see results.

On the pages that follow, we'll discuss how our plan is changing the way we think and the
way we operate, and you'll see evidence of the progress we're

The Coca-Cola Company brands include:

 Barq's
 Coca-Cola
 Coke Zero
 Dasani water
 Diet Coke
 Glacéau
 Fanta
 Fresca
 Full Throttle
 Fuze
 Hi-C
 Kinley
 Lift
 Lilt
 Mello Yello
 Minute Maid
 Monster Energy distributed by Coca-Cola, made by Hansen Natural
 Oasis
 Odwalla
 Powerade
 Pibb
 Relentless

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  Sprite
 Tab
 Thums Up
 Urge
 Vault

1886 - Drink 

Slogans from the 1900's

 1904 - Delicious and Refreshing

 1905 - Wherever you go ... you will find

 1905 - Revives and Sustains

 1906 - The drink of quality. The Great National Temperance

 1907 - is full of vim, vigor and go

 1908 - Get the genuine

 1909 - Whenever you see an arrow, think of

 1911 - Enjoy a glass of liquid laughter
 1917 - Three Million A Day

Slogans from the 1920's

 1920 - Drink with soda, The hit that

saves the day

 1922 - Thirst knows no season
 1923 - Refresh yourself, There's nothing like it when you're thirsty

 1924 - Pause and refresh yourself

 1925 - Six Million A Day

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  1926 - Stop at the red sign
 1927 - Around the corner from anywhere, at the little red sign
 1928 - A pure drink of natural flavors
 1929 - The pause that refreshes

Slogans from the 1930's

 1930 - Meet me at the soda fountain

 1932 - The drink that makes the pause refreshing
 1933 - Don't wear a tired, thirsty face

 1934 - When it's hard to get started, start with a

 1935 - All trails lead to ice-cold

 1936 - Get the feel of wholesome refreshment
 1937 - Stop for a pause...go refreshed
 1938 - Anytime is the right time to pause and refresh, Pure as sunlight
 1939 - Thirst stops here. Makes travel more pleasant.

Slogans from the 1940's

 1940 - The package that gets a welcome at home

 1941 - A stop that belongs on your daily timetable

 1942 - The only thing like is itself

 1943 - A taste all its own
 1944 - High sign of friendship


 1945 - Coke means

 1947 - Relax with the pause that refreshes

 1948 - Where there's there's Hospitality

 1949 -Along the highway to anywhere

Slogans from the 1950's

 1950 - Help yourself to refreshment

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  1951 - Good food and just naturally go together
 1952 - Coke follows thirst everywhere
 1953 - Dependable as sunrise
 1954 - For people on the go
 1955 - Americas preferred taste
 1956 - Feel the difference, Makes good things taste better
 1957 - Sign of good taste
 1958 - Refreshment the whole world prefers
 1959 - Make it a real meal

Slogans from the 1960's

 1960 - Relax with a Coke, Revive with a Coke

 1961 - Coke and food
 1962 - Enjoy that refreshing new feeling
 1963 - Things go better with Coke
 1964 - You'll go better refreshed
 1965 - Something more than a soft drink
 1966 - Coke...after Coke...after Coke

Coca-Cola Jingles
These Jingles are taken from '60s radio air checks.

Slogans From the 1970's

 1970 - It's the real thing

 1971 - I'd like to buy the world a Coke
 1972 - Coke . . . goes with the good times

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  1975 - Look up America, see what we've got
 1976 - Coke adds life

Slogans From the 1980's

 1980 - Have a Coke and a smile

 1982 - Coke is it

 1985 - We've got a taste for you. America's real choice Classic!
 1986 - Catch the Wave. Red, white and you!
 1988 - Can't beat the feeling
 1989 - Official Soft Drink of Summer

Slogans From the 1990's

Ads of company

HISTORY OF COCA COLA

A pharmacist named Dr. John Stith Pemberton invented the refreshing taste of
Coca-Cola in 1886. Concocted by a mixture of caramel-colored syrup in a three-legged brass
kettle while in his backyard. He then decided to try to “market” the drink at Jacobs’
Pharmacy in his hometown of Atlanta, Georgia. For five-cents, customers were able to enjoy

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a glass from the soda fountain. An average of nine drinks were sold a day. In 1891 Dr. John
Stith Pemberton sold Coca-Cola for 2,300 to an entrepreneur named Asa G. Candler. Within
the next four years Coca-Cola was distributed throughout the whole nation. 1893 the Cola-
cola trademark and script were patented. The “two C’s were though to look well for
advertising”. In 1899 large-scale bottling becomes possible when Asa Candler grants Joseph
B. Whitehead and Benjamin F. Thomas exclusive rights for one dollar. But in 1919 Coca-
Cola was sold for $25million to a banker in Atlanta name Ernest Woodruff and a group of
investors. That same year, Coca-Cola sold its first share of stock for forty dollars a share.
Assuming all dividends were reinvested, those original shares would have been worth
approximately $6.7 million at the end of the year.

Coca-Cola (Coke), the world’s largest carbonated soft drink (CSD)

manufacturer had built its brand over the years through consistent and effective advertising
campaigns making history over the years. In the recent times the company had suffered
serious setbacks with a number of controversial and negative allegations leveled against it.
Coke was increasingly being associated with health hazards and was under threat in many of
its key markets. Consumption of CSD, which was its core business, had decreased and sales
fell in Western Europe, Philippines and India. Active anti-Coke movements had triggered
severe criticism from many segments of society including students, environmentalists,

Labor-rights activists, employees and shareholders. In 2004, Neville

Isdell, Coke Chairman and CEO devised a plan to revive Coke. Called the ‘Manifesto for
Growth’, the plan included several strategic initiatives including innovation, increasing
marketing investment and introducing new products in the non Carbonated Soft Drink
market.

As part of the plan to revive the Coke brand, ‘The Coke side of life’, a
new global marketing platform was launched in December 2005. The company believed that
this global campaign would return the company to its former glory. Marketing experts were
however skeptical about this. They wondered if the new marketing campaign would help
offset the myriad charges that beset Coke and help to revive the brand.

The case enables students to appreciate the advertising campaigns

that helped build the Coca-Cola Company into a strong brand. It also enables discussion on
the new campaign launched by Coke and its effectiveness in overcoming its problems.

21
 One great earmark that the Coca-Cola Company has is helping
the people of Atlanta. They accomplish this through scholarships, hotlines, donations and
contributions. Another large accomplishment that the Coca-Cola has, is being the first
company to make and use recycled plastic bottles. One way to see all of the achievements of
the Coca-Cola company is to visit the World of Coke in Atlanta. It houses a collection of
memorabilia, samples of the products, exhibits, and many other exciting items. All of what
has been said is the basis of what Coca-Cola was built on. Without societies help, Coca-Cola
could not have become over a 50 billion dollar business. Keep on consuming the world's
favorite soft drink, Coca-Cola.

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 came to the fore.

 The term "soda water" was first coined in 1798.

 In 1810, the first U.S. patent was issued for the manufacture of imitation mineral
waters.

 The first soda fountain patent was granted to Samuel Fahnestock in 1819.
 In 1858, G.D. Dows invented and operated the first marble soda fountain, which he
patented in 1863.
 In 1883, James W. Tufts patented a soda fountain, which he called the Arctic. Tufts
went on to become a huge soda fountain manufacturer.
 On January 25, 1870, Gustavus Dows patented a modern form of the soda fountain.
 In October of 1874, Robert M. Green created the first ice cream soda.
 In 1903, a revolution in soda fountain design took place with the front service
fountain patented by Dr. Heisinger.

More fun facts and trivia

22
 Coca-Cola can be used to bake a ham.  Pour one can into the baking pan, rap the
ham in aluminum foil, and bake.  Thirty minutes before the ham has finished cooking,
remove the foil, allowing the drippings to mix with the Coca-Cola to make a
delicious brown gravy.
 Mexico and Iceland have the highest per capita consumption of Coca-Cola.
 Coca-Cola translated to Chinese means, "To make mouth happy".
 Every second over 7,000 Coca-Cola products are consumed.
 The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry Bay is
17 floors, and the plant in Shatin is 25 floors.
 The bottling plant at the highest elevation in the world is located in Bolivia, at 12,000
feet.
 The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a four-azle
trailer.

 The best selling non-carbonated soft drink in Japan is a product of The Coca-Cola
Company named "Georgia", a coffee flavored beverage.
 Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German
dirigible.
 The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of serving the
highest volume of Coca-Cola anywhere. It dispenses nearly 3 million servings of
Coca-Cola annually.
 If the Coca-Cola company constructed a sign like the ones McDonald's uses to count
their millions of customers, by 1983 it would have read "over 1 trillion served."
 If all the Coca-Cola ...
o ever produced were in 6 1/2 oz. bottles and placed end to end they
would wrap around the earth more than 11,863 times.
o sold in 1994 were in 8-ounce bottles laid end-to-end, those
bottles would reach to the moon and back 76 times.
o vending machines in the U.S. were stacked one on top of each other,
the pile would be over 450 miles high.

23
 o ever produced were to erupt from "Old Faithful" at its normal rate of
14,000 gallons per hour, the geyser would flow continually for 1,577
years.
o Products sold in 1994 were flowing over Niagara Falls at its normal
rate of 1.5 billion gallons per second, the falls would flow for three
hours.

Ingredients of Coke

 Carbonated Water
 High Fructose Corn Syrup
 Caramel Color
 Phosphoric Acid
 Natural Flavors
 Caffeine

Description:

This company profile offers a comprehensive analysis of the organization, its

business segments, and competitors. It analyzes the business and marketing strategies adopted by the
company, toga in a competitive edge in the industry. The profile also evaluates the strengths of the
company

and the opportunities present in the market.

This profile is of immense help to management consultants, analysts, market research

Organizations and corporate advisors.

The objective and scope of various sections of our company profile has been discussed below.

Company Summary

This section presents the key facts & figures, business description, products & services offered and
Corporate timeline of the company.

Company Analysis

24
It involves analysis of the company at three levels - segments, organizational structure and ownership
composition. Both business and geographic segments are analyzed along with their recent financial
performance. It further discusses the major subsidiaries of the company and the recent merger &
acquisitions.

Business Developments

This section examines the significant developments that have taken place in the company. It is form of
news analysis where the most critical company news is discussed.

Discussion of Business Strategies

This section talks about the current and future strategies of the company. All business, marketing,
financial and organizational strategies are discussed here.

SWOT Our SWOT Analysis is a valuable step in assessing your company’s strengths, weaknesses,
opportunities, and threats. It offers powerful insight into the critical issues affecting a business.

Financial Performance

It discusses the most recent financials of the company and also compares the historical sales
& income figures with the current and projected figures. The objective is to evaluate the financial
health of the company. The analyst opinion and stock performance help us in evaluating the
performance of the company from an investor’s viewpoint.

Competition Synopsis

This section compares the company with its peer group. The comparable analysis and stock
movement are aimed at giving an overview of the competitive landscape in the industry and the
company’s positioning in its peer group.

Analysis Soft Drink

1 Analysis of the U.S. soft drink industry, based on the competitive forces model of Michael Porter.

In the soft drink industry the entry of new competitors depends on the barriers to entry that
are present, and also the reaction from existing competitors that the entrant can expect.

I will now analyze the six major sources of barriers to entry the soft drink industry.

25
Economies of scale deter entry by forcing the entrant to come in at large scale and risk strong
reaction from existing firms or come in at a small scale and accept a cost disadvantage. If a
company wants to decline its unit costs of their product, they will have to produce more to
lower the cost. The more you produce, the lower the costs.

In the soft drink industry establishing firms have brand identification and customer loyalties.
The brand name can have differences. This is a high barrier to enter. Entrants are forced to
spend a lot to overcome existing customer loyalties.

Definition of soft drinks

Nonalcoholic beverage

A soft drink is a beverage that does not contain alcohol ; generally it is also implied that the drink
does not contain milk or other dairy

Family of alcohol free, carbonated , drinks that are aromatized with fruit extracts. cola , tonic, etc

REVENUE

The Coca-Cola Company North America offices in Sugar Land, Texas, United StatesAccording to the
2005 Annual Report, 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. 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:

 37% in the United States

 43% in Mexico, 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.

INDUSTRY PROFILE

26
The company's international blitz began in 1926 when company President Robert Woodruff
signed Coca-Cola as a sponsor of the 1928 Olympic Summer Games in Amsterdam. The U.S.
Olympic Team and 1,000 cases of Coca-Cola arrived at the games by freighter. Since then,
the relationship between the Olympic Games and Coca-Cola has only grown!

Many Coca-Cola divisions around the world sponsor individual athletes or teams as well.

 1928 was also the first year the Olympic flame was lit, and women were invited to
compete.

 1952 -- The Summer Games in Helsinki - Coca-Cola shipped 300,000 cases of bottles
and donated it for sale by the Disabled Ex-servicemen's Association.

 1952 -- The Winter Games in Oslo - The local Coca-Cola bottler chartered a
helicopter for advertising. In 1952 most people had never seen anything like a
helicopter and they were utterly fascinated. At the close of the games, the helicopter
was given to the city to help direct traffic.

 1960 -- The Summer Games in Rome - Italian bottlers welcomed athletes, officials
and spectators to Rome with a 45 rpm record of "Arrivederci Roma."

 1964 -- The Summer Games in Tokyo - This marked the first year Coca-Cola aided
the athletes, spectators and media with guide maps, sightseeing information and a
phrase book. The idea was so popular, it was adapted for use in Mexico City, Sapporo
(Japan) and Munich.

 1979 -- The Coca-Cola company worked with the Olympic Committee to create the
U.S. Olympic Hall of fame.

 1988 -- The Winter Games in Calgary - Coca-Cola orchestrated a world children's

chorus. Also, Coca-Cola opened the venue for what would later be deemed the games
number-one spectator sport -- The Coca-Cola Official Olympic Pin Trading Center.

 1996 -- The Summer Games in Atlanta - The Games' centennial, as sole sponsor of
the Olympic Torch Relay, Coca-Cola brought the flame to more than 350 cities and
towns during the 94-day run.

27
 You may know someone who got to run with the flame! I was fortunate enough to
watch the flame's progress through Clark County, Indiana into Louisville, Kentucky. I
even got my picture taken with one of the runners, as I held the torch!! AND I was
there as the flame entered our nation's capital, Washington, D.C. through Fairfax
County, Virginia!

  Olympic Commemorative Cans

1928 1948 1964 1992 1996

Amsterdam London Tokyo Barcelona Atlanta

MODERN TRADE

Modern Trade is the process of doing business by utilizing and implementing latest trends in
the business with the help of technology to reach the target customer.

Now a day’s each and every one in the market is implementing these practices and having
successful business.

Modern format retail is witnessing phenomenal growth, driven by the impact of increasing
urbanization, the new well-traveled, knowledgeable Indian consumer and a youth-driven
culture. In its official estimate for the current fiscal ending in March, the government said
that the economy, Asia's fourth largest, was expected to grow at 9.2 per cent.

All these factors are rapidly changing the needs and aspirations of consumers. Schedules are
also getting tighter, with the time for professional commitments and regular chores getting
limited. Hence, the "convenience" factor has a major influence on purchase decisions.

28
Modern trade, the characteristic of which is having everything under one roof and with a
great array of products displayed in an uncluttered fashion where the touch and feel factor
prevails, is providing an environment to access products driven by convenience and fashion.

Evolution of Modern Trade

When we discuss modern trade, the terms large-scale; modern-format and organized are used
rather synonymously in India. However, the three terms need not necessarily mean the same
thing. Large-scale refers to the scale of operation of retail business - which in turn implicitly
refers to a chain of stores. Modern-format basically refers to self-service. However, many of
the self-service stores which call themselves ‘Supermarkets’, are in the range of 500 sq.ft. or
less in size and are nothing more than independent mom-and-pop stores. And organized retail
typically means large-scale chain stores which are corporatized, apply modern-management
techniques and are very likely to be self-service in nature. Most of the estimates of organized
retail market size refer to only large-scale retail. For us modern-retail in this paper means self-
service in both large-scale as well as small-scale. Contrary to the popular view where-in all
credit for growth of modern retail goes to the consumer and their increasing purchasing power,
it is found that consumers manufacturers and retailers – all three – have been impacting the
evolution process.

MODERN TRADE IN INDIA

India once again topped the world in the ACNielsen Consumer Confidence Index for the third
time in a row since the index was established in early 2005, with the highest score of 181 in
the last leg of the survey, conducted in November 2009.

Strong economic growth has brought with it new sets of Indian consumers. The booming
young adult population with unprecedented levels of disposable income is more conscious of
the latest trends and fashion. Enhanced media penetration and greater connectivity also are
making consumers more knowledgeable and discerning.

Modern trade is an old saga in India with about 7.8 million retail stores, but most of those are
traditional ones, which only recently started making way for hypermarkets, supermarkets and
specialty stores. Modern trade in India is witnessing tremendous growth, especially in Tier I
cities

29
It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about 10.7 per
cent of the total FMCG sales. For South Indian metros it touches about 19 per cent, because
modern trade started there a little earlier. There are more than 3,840 modern trade stores in
India now.

IMPACT OF MODERN TRADE ON FMCG

Looking at the kind of consumer patronage a modern trade format store has in terms of an
urban population growing rich, there are a few segments in the FMCG range of products that
have experienced good growth from the modern trade format. In the food segment, processed
food products (23 per cent), impulse food products (32 per cent) and packaged grocery (38
per cent) are the segments that have witnessed immense growth from urban Indian modern
stores.

Similarly, in the home and personal care segments it is household cleaning products (38.1 per
cent), fabric care (23 per cent) and categories related to grooming, viz. hair care (28.3 per
cent), fragrances (26 per cent) and skin/body care (23 per cent) that have recorded
considerable growth from urban modern format stores.

An increasing number of working women and nuclear families are some reasons behind the
growth in the food categories. Packaged grocery is a very convenient product for people who
are busy and hence we see it doing so well. Again the young adult population of India is
ambitious and hard working, and has the money to spend on lifestyle. They are brand-
conscious and aware of what their counterparts in the West are wearing and buying

No wonder products related to grooming like like skin care, hair care, and fragrances, or, for
that matter, products like household cleaners are witnessing growth. These consumers
represent the target for manufacturers and retailers, who want to capture a share of the
booming consumer markets in India. Manufacturers, on their part, are investing aggressively
to capture the minds of today's and tomorrow's generations.

With more modern format stores setting up shop in the country we are also witnessing an
expansion in these segments in terms of availability of innovative packaging sizes, product
innovation and overall ranges.

30
Modern trade and food as a category: Food accounts for about 48 per cent of FMCG sales in
the country and for modern trade the number is even higher, at 51.3 per cent. Like other Asia-
Pacific markets, in India too, among the processed food segments, the breakfast cereals
category is exhibiting a stupendous 40 per cent growth rate. Other growing categories are
biscuits (26 per cent), vermicelli & noodles (28 per cent), beverages (24 per cent) and
ketchup and sauce (29 per cent).

Indians have an old fascination for home-cooked food, especially when it comes to lunch and
dinner. With the changed lifestyle, the trend is changing and people have started showing
interest in ready-to-cook foods. However, even today a majority of these consumers are
willing to restrict the experiment to packaged foods and accompaniments meant for breakfast
and snack time.

Chocolates (28 per cent) and namkeens (37 per cent) are two major categories of impulse
food products showing good growth, along with packaged rice (92 per cent) in the packaged
grocery segment.

Modern trade and home and personal care products (H&PC): As far as H&PC is concerned,
from modern trade it has witnessed a growth rate of about 23 per cent, which is at par with
the overall growth. Modern trade brings with it a great shopping experience, with good
product displays, making selection far easier.

Under household cleaners it is floor cleaners (88 per cent) and toilet cleaners (37 per cent)
that are growing well; in hair care, it is hair conditioners (43 per cent) and hair oil (35 per
cent), and for the skin care segment, it is skin creams (35 per cent) that are driving the H&PC
sales in modern stores.

With the overall economy doing well and basic necessities mostly taken care of, people are
now more keen to look and feel good and are ready to devote time and money on that. Unlike
in the past, when there was one product used for all household cleaning, people now are
willing to experiment with specific products meant for cleaning glasses, utensils, floors, etc.

THE emergence of modern trade (or organized retail) is currently the biggest challenge
facing FMCG manufacturers, who could see increasing pressure on sales margins as a result.

31
Citing as an example the situation in the US where retailer Wal-Mart is much bigger than any
of the FMCG companies, he said such a scale would give modern trade the power to
negotiate. "Today, I give 13 per cent (margin). Modern trade won't settle for anything less
than 20 per cent," he said, addressing students of the ICFAI Business School as part of a BL
Club lecture.

32
 CHAPTER IV

DATA ANALYSIS & INTERPRETATION

Table-2
CLASSIFICATIO ON THE BASIS OF GENDER

33
 SL.NO GENDER PERCENTAGE
1 Male 46 %
2 Female 54 %

PERCENTAGE

54%
52%
50% PERCENTAGE
48%
46%
44%
42%
Male Female
1 2

  INTERPRETATION: The above table shows that 46 % of respondents are

male and 54 % are females.

TABLE-3
CLASSIFICATION ON THE BASIS OF AGE
SL.NO AGE OF RESPONDENTS PERCENTAGE

34
 1 15-20 64 %
2 21-25 10 %
3 26-30 14 %
4 30-35 12%

PERCENTAGE

1 15-20
2 21-25
3 26-30
4 30-35

INTERPRETATION: Majority of the respondents are in the age between15 to

20, and minority of respondents are in the age of 21 to 25.

TABLE-4
PRESENT CONSUMER OF SOFT DRINKS
SL.NO RESPONSE PERCENTAGE

35
 1 YES 100 %
2 NO 0%

PERCENTAGE

1 YES
2 NO

100%

INTERPRETATION: The above table shows that 100 % of respondents are

using soft drinks.

TABLE-5
SHOWING THE PROMOTIONAL STRATEGIES OF SOFT DRINKS
SL.NO BRANDS OF SOFT DRINKS PERCENTAGE

36
 1 Coco-cola 14 %
2 Pepsi-cola 12 %
3 Sprite 38 %
4 Fanta 10 %
5 Others 26 %

PERCENTAGE

1 Coco-cola
2 Pepsi-cola
3 Sprite
4 Fanta
5 Others

INTERPRETATION: The table shows that 38 % of customers are using

Sprite, 14 % are using Coco-cola, 12 % prefer Pepsi-cola and 26 % prefer other
brand.

TABLE-6
SHOWING THE SOURCE INFORMATION REGARDING SOFT DRINKS
SL.NO SOURCE OF INFORMATION PERCENTAGE

37
 1 Media advertisement 52 %
2 Internet 10 %
3 Friends 16 %
4 News papers and magazines 10 %
5 others 12 %

PERCENTAGE

1 Media advertisement
2 Internet
3 Friends
4 News papers and mag-
azines
5 others

INTERPRETATION: 52% of respondents get awareness through media

advertisement and 10 % get awareness through internet, 16 % friends, 10
percentages get from news paper and magazines. 12 % get other sources like
relatives, family, etc. .

TABLE-7
SHOWING THE CONSUMERS USING THE ABOVE STATED BRAND
SL.NO NUMBER OF YEARS PERCENTAGE

38
 1 Last 5 months 14 %
2 1 year 12 %
3 1-2 years 24%
4 More than 2 50 %

PERCENTAGE

1 Last 5 months
2 1 year
3 1-2 years
4 More than 2

INTERPRETATION: 50 % customers using the stated brand more than two

years, 24 % suing the stated between the periods of 1 to 2 years. 14 % of
customers are using the particular brand for last five months.

TABLE-8
SHOWING CONSUMER INFLUENCE TOWARDS ADVERTISEMENT

39
 SL.N INFLUENCE OF ADVERTISEMENT PERCENTAGE
O
1 Yes 70 %
2 No 30%

PERCENTAGE

30%
1 Yes
2 No

70%

INTERPRETATION: 70 % are influenced by advertisement and 30 % are not-

influenced by advertisement.

TABLE-9
SHOWING THE CONSUMERS’ OPINION OF THE BRANDS

40
 SL.NO BRAND PERCENTAGE
1 Excellent 18 %
2 Good 62  %
3 No opinion 20 %
4 Bad 0%
5 Poor 0%

PERCENTAGE 18% 62  %

3 No opinion
4 Bad
5 Poor

20%

INTERPRETATION:  18% of customers say that their brands are excellent.

The other 62 % are says that their brands are good. The remaining 20 % of
respondents do not have any opinion about their brand. Nobody says that the
brands that they preferred are bad or poor.

TABLE-10
SHOWING THE MOST COMMON PLACE FOR PURCHASE

41
SL.NO COMMON PLACE WEIGHTED
AVERAGE
1 Convenience 4.56
2 Grocery 3.58
3 Stores 4.94
4 Wholesale warehouse 2.98
5 Restaurants 3.62
6 others 1.40

WEIGHTED AVERAGE

1 Convenience
2 Grocery
3 Stores
4 Wholesale warehouse
5 Restaurants
6 others

INTERPRETATION:  The above table shows that majority of respondents of

purchase soft drinks from convenience stores and stores and its weighted
average ( 4.56). Others purchase soft drinks from restaurants grocery etc.
Minority of respondents purchase soft drinks from wholesale warehouse and
other sources.

TABLE-11

42
SHOWING THE PURPOSE OF USING SOFT DRINKS AMONG
CONSUMERS
SL.N PURPOSE PERCENTAGE
O
1 Taste 14 %
2 Caffeine 6%
3 Refreshment 68%
4 Brand loyalty 6%
5 Others 6%

PERCENTAGE

1 Taste
2 Caffeine
3 Refreshment
4 Brand loyalty
5 Others

INTERPRETATION:  68% of respondents are using soft drinks for

refreshments. 14% are for taste. Remaining customers give importance to
caffeine, brand loyalty and other reasons. 

43
TABLE-12
SHOWING PROMOTIONAL STRATEGIESTOWARDS CHANGING THE
BRAND
SL.NO OPINION PERCENTAGE
1 Yes 36%
2 No 64%

PERCENTAGE

1 Yes
2 No

INTERPRETATION:  64% of respondents are not preferred to change the

brand frequently. The 34% of respondents are preferred to change the brand.

44
TABLE-13
SHOWING THE PRICE OF CONSUMERS FAVOURITE BRAND IS
REDUCED, WILL YOU BUY MORE OF IT

SL.NO OPINION PERCENTAGE

1 Yes 28%
2 No 72%

PERCENTAGE

1 Yes
2 No

INTERPRETATION:  28% of respondents buy more soft drinks, when the

price is reduced. 76% respondents do not buy more soft drinks, when the price
is reduced.

45
          TABLE-14
SHOWING PROMOTIONAL STRATEGIES IS NOT AVAILABLE FOR
PURCHASE WHAT WILL THEY DO

SL.NO OPINION PERCENTAGE

1 Post pone purchase 14%
2 Switch once to other brand 32%
3 Go to other shop 42%
4 Search for your preferred brand 12%

PERCENTAGE

1 Post pone purchase

2 Switch once to other
brand
3 Go to other shop
4 Search for your pre-
ferred brand

INTERPRETATION:  14% of respondents post pone their purchase when soft

drinks not available for purchase. At this situation 32% respondents switch over
to other brand. 42 % respondents go to other shops. Remaining 12 %
respondents search for their preferred brand.

46
TABLE-15
SHOWING OTHER PRODUCT OF THE SOFT DRINK APPEAR IN THE
MARKET WILL CONSUMER PREFER TO SHOP BUYING THIS BRAND
AND NEW BRAND
SL NO OPINION PERCENTAGE
1 Not at all 14%
2 I may consider 48%
3 Yes 4%
4 Can’t say 34%

PERCENTAGE

1 Not at all
2 I may consider
3 Yes
4 Can’t say

INTERPRETATION:  14% respondents not at all purchase other products of

soft drinks which appeared in the market. 48% of respondents will consider the
other product of soft drinks. 34% respondents can’t say anything about this
situation. Remaining 4% will buy the other product of soft drink.

47
TABLE-16
SHOWING THE MOST FACTORS WHICH AFFECT THE BUYING
DECISION
SL.NO FACTORS WEIGHTED
AVERAGE
1 Quality and taste 6.56
2 Packaging 4.46
3 Celebrities 3.82
4 Price 4.44
5 Recommendations from 4.46
friends and relatives
6 Medias 2.92
7 Others 1.34

WEIGHTED AVERAGE

1 Quality and taste

2 Packaging
3 Celebrities
4 Price
5 Recommendations from
friends and relatives
6 Medias
7 Others

INTERPRETATION:  Most of the people give importance to quality and taste

with a weighted average of 6.56. Whereas second preference is give to
packaging (W.A-4.46), price (4.44), recommendations from friends and
relatives (4.46) and the least preference is given to medias (2.92).

48
TABLE-17
SHOWING THE COMSUMER PAY THE QUANDITY DO PREFER
BUYING A PRODUCT
SL.NO QUANDITY PERCENTAGE
1 100ml-250ml 16%
2 250ml-500ml 42%
3 1 liter 32%
4         More than 1liter 10%

PERCENTAGE

1 100ml-250ml
2 250ml-500ml
3 1 liter
4         More than 1liter

INTERPRETATION:  The table showing the consumers preference quantity

for purchasing soft drinks. Majority of the respondents belongs 250ml-500ml.
32% choose the option 1 litre. 16% prefer 100ml-250ml and only 10% prefer
more than 1 litre.

49
TABLE-18
SHOWING THE SATISFACTION LEVEL OF CONSUMERS
SL.NO ITEMS WEIGHTED
AVERAGE
1 Price 3.70
2 Quality 3.82
3 Flavour and taste 3.86
4 Packaging 3.76
5 Brand 3.84
6 Advertisement frequency 3.56
7 Availability 3.72
8 Colour 3.22

WEIGHTED AVERAGE

1 Price
2 Quality
3 Flavour and taste
4 Packaging
5 Brand
6 Advertisement frequency
7 Availability
8 Colour

INTERPRETATION: The above table shows that respondents are satisfied

with price, quality, flavour and taste, packaging, brand, advertisement
frequency, colour and availability of soft drinks as their weighted average
(<3.5).

50
TABLE-19
STUDY THE CONSUMER VEIW OF SOFT DRINKS
SL.NO VIEW PERCENTAGE
1 As a health drink 10%
2 As an aid to put off thirst 68%
3 As a status symbol 12%
4 Other 10%

PERCENTAGE

1 As a health drink
2 As an aid to put off thirst
3 As a status symbol
4 Other

INTERPRETATION: The above table shows the views of consumer about

soft drinks. 68% choose the option as an aid to put off thirst. 12% of
respondents view is as status symbol. 10% view is as a health drink.

51
 CHAPTER 5

FINDINGS, SUGGESTIONS AND

CONCLUSION

52
 FINDINGS

·        The majority of respondents are prefer sprite and secondly preferred others

·        Majority of the reason for preferring a selected brand is refreshment

·        Majority of respondent don’t like to change brand frequently.

·        Most of the respondents view soft drink as an aid to put off thirst

·        Majority of the consumer do not buy more soft drinks at the time of reducing the price

·        Media advertisement is the most influencing medium while purchase of soft drinks

·        Age between 15 to 20 prefer to buy more

·        In this survey major respondents are female

·        Majority of the consumers opinion of the brand is good

·        Majority of the consumers are satisfied with flavour and taste

·        Most of the consumers affected by quality and taste for buying decision

53
SUGGESTIONS

 Consumption of soft drinks are not good for health. There are so many
health problems related with consumption of soft drinks. The major
findings from this study, youth is the major consumers of soft drink
product.
 Youth should:
 Reduce their consumption of regular sports drink, soda or pop and other
sugar – sweetened beverages.
 Increase their consumption of water and low fat or fat milk
 Reduce youth’s access to sugar- sweetened beverages to decease
consumption.   
 Encourage adolescents to drink water and low fat- free milk, or limited
amounts of 100% fruit juices, as an option.

54
 CONCLUSION

As stated in the objectives, this study is aimed at studying the b rand pretence and factors
influencing young consumers of packaged soft drinks. The major part of the soft drink
consumers are in 15-20 age groups. The most preferred brand is Sprite and second position to
others. The consumption of soft drinks products increase comparing with previous times. The
changing living pattern and life style of the peoples are changed a lot so soft drinks where
common preference among all the individuals with the change in life style and income level,
peoples are shifting their consumption patterns. The competition between the brands lead to a
high influence in Promotional strategies of the consumers because their marketing strategy.
The quality and taste are influencing in consumer purchasing decisions. One of the major
influencing medium of purchasing soft drink product is media advertisements. Major part of
the consumer view about soft drink is as an aid to put off thirst. Another part of the consumer
believe soft drink as a status symbol.

The nature oif soft drink markets are oligopoly .i.e.  oligopoly is a market dominated by a few
large suppliers the degree of market concentration is very high (i.e a large % of the market is
taken up by the leading firms) . Firms with in an oligopoly produce branded products
(advertising and marketing is a important feature of competition with in such markets) and
there are also barriers to entry.

Soft drink consumption is no good for health there are so many disease incur through soft
drink consumption but our changes in life styles soft drinks consumption is an important
product item in modern society both urban and rural and becoming more popular in the
consumer world. At present soft drink market is one of the most competitive markets in the
world.  

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 BIBLIOGRAPHY

BOOKS

Ø Business research methods -  Dr. K . venugopalan

Marketing management – Philip kotler

Marketing management -   A. vinod

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 APPENDIX

A STUDY ON PROMOTIONAL STRATEGIES OF SOFT DRINKS AMONG YOUTH

1. Name:                           

2. Gender:  Male                Female   

3.
Age:   15 -20              21 – 25              26 – 30              30 – 35

4. Do you drink soft drinks?         Yes                 No

5. If yes which brand of soft drink do yhou prefer?

Coca –cola            Pepsi-cola           

Sprite                Fanta              Others  
6. What is the source of information regarding soft drink?

Media advertisement             Internet           

Friends              Newspaper & magazines              Others
7. How long you have been using the above stated brand?

Last 5 months             1year              1 to 2

year              more than 2
8. Do you think advertising influence you to drink soft drinks?

 Yes             No
9. What is your opinion of the brand?

Excellent             Good            No
opinion            Bad             Poor(
10. Where is the most common place that you purchase soft drinks? (put ranks)

Convenience stores           
Grocery             Stores            Wholesale ware house           Restaurants              Others
(specify):
11. Why do you drink soft drinks?

Taste            Caffeine          
Refreshment            Brand loyalty            Others

12. Do you like to change the brand frequently?    Yes             No

13. If the price of your favourite brand is reduced, will you buy more of it?

Yes             No
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14. If your preferred brand is not available for purchase what will you do?

Post pone purchase            Switch over to other

brand            Go to other shop           Search for your preferred brand

15. If another product of the soft drink appears  in the market will you prefer to stop
buying this brand & buy new brand?

Not at all            I may consider            Yes            Can’t say

16. Which factor mostly affect your buying decision? (put

ranks)

Quality & taste           Packaging            Celebrities             Price            

Recommendation from

Friends & relatives               Medias             Others(specify)

17. How much quantity do you usually prefer to buy?

100ml-250m   l          250ml-500ml              1

litre            more than 1 litre
18. Rate the level of influence of following factors on your purchase decision (tick the
desired column)
items Very high High Average Low Very low
Price
Quality
Flavour
&taste
Packaging
Brand
Advertisemen
t frequently
Availability
Colour

19. Rate how much are you satisfied with the following factors in your preferred soft drinks?

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 Highly satisfied            Satisfied             No
opinion           Dissatisfied             Highly dissatisfied

20. How do you view soft drinks?

As a health drink               As an aid to put off
thirst             As a status symbol             Any other (specify)

21. Do you have any suggestions and recommendation for the usage of soft drink

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