You are on page 1of 55

PROJECT REPORT

ON
CONSUMER BEHAVIOR TOWARDS COCA-COLA

Submitted In Partial Fulfilment for

AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

(SESSION 2020-2022)

SUPERVISED BY: SUBMITTED BY:

Dr.Narender Singh Chauhan Shivam Verma

MBA 4th SEM

200521221220108

HIMACHAL PRADESH UNIVERSITY BUSINESS SCHOOL

HIMACHAL PRADESH UNIVERSITY SHIMLA

SUMMERHILL, SHIMLA (171005) (H.P)


DECLARATION

I Shivam Verma S/o Sri Baldev Verma hereby declare that the project report has been
prepared by me. The data and information are authentic to the best of my knowledge.

Shivam Verma

MBA 4TH Sem.

HPUBS
Recommendation of supervisor

This is to certify that report of the project submitted is the outcome of the project work
entitled “CONSUMER BEHAVIOR TOWARDS COCA-COLA” carried out by Mr.
Shivam Verma bearing Roll no.: 200521221220108 carried under my guidance and
supervision for the award of Degree in Master of Business Administration of Himachal
Pradesh University, Summerhill Shimla.

(Signature of the Supervisor)


Acknowledgement

It is indeed a pleasure doing a project on “MARKETING STRATEGIES OF COCA-


COLA. I am grateful to Dr. Jai Singh Parmar (HOD) for providing me this opportunity.

I owe my indebtedness to My Project Guide Dr. Narender Singh Chauhan, for his keen
interest, encouragement and constructive support and under whose able guidance I have
completed out my project. He not only helped me in my project but also gave me an overall
exposure to other issues related to retailing and answered all my queries calmly and patiently.

I take the pleasure to express thanks to all my colleagues for many useful discussions and
cooperation during the course of the project work.
Table of contents
S no. TITLE PAGE
NO
1 Chapter 1- Introduction 7-18

1.1 - Conceptual background of the topic 8

1.2 -History and prospective of the 15


organization

2 Chapter 2- Research Design 19-30

2.1- Review of literature 22

2.2- Need of the study 23

2.3- Scope of the study 24

2.4- Objective of the study 25

2.5- Research Methodology 27

2.5.1- Sampling Method 28

2.5.2- Statistical Methods and tools 30


used for data analysis
3
Chapter 3- Data Analysis and 31-45
Interpretation

4 Chapter 4 – Summary and conclusion 47


5 Bibliography 50
6 Questionnaire 51
Executive Summary
From this project titled " MARKETING STRATEGIES OF COCA COLA" in colds
drinks industry, I have learned a lot about real practical work being done in the market I have
also watched & learned the practical applicability of the various things that we have studied
theoretically.
I observed on the basis of survey in SHIMLA city that Coca-Cola lay emphasis on
merchandising in order to become the No.1 brand in soft drink industry the report was finds
out the availability of different flavour and packs.
Cola-Cola adopts good customer relationship management, it is focus on the, segment of the
product because each segment is affected by different sets of factor which hamper or enhance
sales. Each segment had its own Pros & Cons. So we have to understand the various segment
of soft drink industry that which flavour is existing more in the market, Such as Thumps-up
strong brand of coke which is more popular in young generation. I also observe about fate
dealer, sub dealer, monopoly counter & its marketing strategy. Such as fate dealer is
influence wrong direction to the market. They are supply product at high margin with low
scheme.
The company is making all out efforts to quench the thirst of millions of people around
the globe but thirst of the company to capture the globe should never be quench.

A feeling of being satisfied should never be allowed to creep into the management as well as
the rank and the profile of the company. As in this report we can see that coca-cola lays
heavy expenses on advertising in order to attract the customers towards its product and also
wants to create brand awareness of its product.

6|Page
CHAPTER 1

INTRODUCTION
7|Page
8|Page
1.1 CONCEPTUAL BACKGROUND OF THE TOPIC

One of the most successful names in American business history, Coca-Cola’s fascinating
beginnings turned into one of the largest beverage companies in the world. Here is a brief
history of the company’s life, and the moves being taken today that affect the stock’s
performance.

One of the most successful names in American business history, Coca-Cola’s fascinating
beginnings turned into one of the largest beverage companies in the world.

Coca-Cola. The mega conglomerate of American capitalism, with humble beginnings as a


drink containing cocaine. Since 1886, Coca-Cola has operated through the changes in the
U.S., and eventually the world. Since going public, it has been a time-honoured dividend
play, with decades of strong financial growth.

HOW COCA-COLA WAS FOUNDED?

According to Encyclopaedia Britannica, Coca-Cola (KO) - Get Coca-Cola Company


Report began in 1886 when John S. Pemberton began to make the original beverage at his
chemical company. Originally containing both cocaine and forms of caffeine, the drink was
marketed as a “tonic” for ailments. As crazy as it sounds, that wasn’t that absurd for the
times.

Pemberton’s syrup was taken to a local pharmacy where they added it to soda
water. According to Coca-Cola’s website, Frank M. Robinson, Pemberton’s business partner,
came up with the name Coca-Cola as well as the design that everyone knows so well.
Pemberton’s creation wasn’t his for long, as investors soon jumped in on the potential of the
beverage, and expansion took off past the beginning territory of Atlanta.

COCA-COLA TIME LINE

1886- John S. Pemberton creates the flavoured syrup that become Coca-Cola.

1888-Before Pemberton’s passing, he divests parts of his business, with Asa G. Cinder
gaining the largest holdings. The businessman began to turn Coca-Cola into a larger scale

9|Page
business. He drove distribution past the borders of Atlanta, with a focus on a more national
strategy.

1894-Bottling machines are added to a soda source in Mississippi by Joseph Biedenharn.

1899- Bottling is expanding on a grander scale, businessmen in Tennessee gain rights to the
bottling and sale of the soda.

1916-The year that the unique classic glass bottle, with its contoured shape, came into the
picture.

1971- Coca-Cola airs one of the most iconic ads in the history of advertising, their “I’d like to
buy the world a Coke” commercial.

Today- Coca-Cola does billions in revenues, and is a dividend staple for many portfolios.
The company has faced some adversity in more recent times, as they’ve had to broaden their
portfolio in order to stem declining revenues.

1.2 HISTORY AND PROSPECTIVE OF THE ORGANIZATION

The Coca-Cola Company announced strategic steps to reorganize and better enable the Coca-
Cola system to pursue its Beverages for Life strategy, with a portfolio of drinks that are
positioned to capture growth in a fast-changing marketplace.

The company is building a networked global organization, combining the power of scale with
the deep knowledge required to win locally. The company will create new operating units
focused on regional and local execution that will work closely with five marketing category
leadership teams that span the globe to rapidly scale ideas.

This structure will be supported by the company’s newly created Platform Services
organization, which will provide global services and enhanced expertise across a range of
critical capabilities.

Operating units

10 | P a g e
The company’s nine new operating units will help streamline the organization by replacing
current business units and groups. The operating units will be highly interconnected, with
more consistency in structure and a focus on eliminating duplication of resources and scaling
new products more quickly.

The company’s current model includes 17 business units that sit under four geographical
segments, plus Global Ventures and Bottling Investments. Moving forward, the operational
side of the business will consist of nine operating units that will sit under four geographical
segments, along with Global Ventures and Bottling Investments.

The company’s operating leaders will report to President and Chief Operating Officer Brian
Smith.

Global category leads

Innovation, marketing efficiency and effectiveness are top priorities for the company. The
Coca-Cola Company is conducting a portfolio rationalization process that will lead to a
tailored collection of global, regional and local brands with the potential for greater growth.
To drive these initiatives and support the operating units, the company is reinforcing and
deepening its leadership in five global categories with the strongest consumer opportunities:

• Coca-Cola
• Sparkling Flavours
• Hydration, Sports, Coffee and Tea
• Nutrition, Juice, Milk and Plant
• Emerging Categories

The leaders of these categories will work across the networked organization to build the
company’s brand portfolio and win in the marketplace. Global category leads will report to
chief marketing officer Manolo Arroyo.

Platform Services

The company announced the creation of Platform Services, an organization that will work in
service of operating units, categories and functions to create efficiencies and deliver

11 | P a g e
capabilities at scale across the globe. This will include data management, consumer analytics,
digital commerce and social/digital hubs.

Platform Services is designed to improve and scale functional expertise and provide
consistent service, including for governance and transactional work. This will eliminate
duplication of efforts across the company and is built to work in partnership with bottlers.

Platform Services will be led by senior vice president and chief information and integrated
services officer Barry Simpson.

Aligning the company’s workforce to new priorities

The company’s structural changes will result in the reallocation of some people and
resources, which will include voluntary and involuntary reductions in employees. The
company is working on this next stage of design and will share more information in the
future.

In order to minimize the impact from these structural changes, the company today announced
a voluntary separation program that will give employees the option of taking a separation
package, if eligible.

The program will provide enhanced benefits and will first be offered to approximately 4,000
employees in the United States, Canada and Puerto Rico who have a most-recent hire date on
or before Sept. 1, 2017. A similar program will be offered in many countries internationally.
The voluntary program is expected to reduce the number of involuntary separations.

The company’s overall global severance programs are expected to incur expenses ranging
from approximately $350 million to $550 million.

12 | P a g e
INDUSTRY PROFILE

ORIGIN AND DEVELOPMENT OF THE INDUSTRY

Soft drink industry scenario the world over is almost the same with two major players i.e.
Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the
industry is Cadbury-Schweppes and some local player in individual countries. The major
components of the industry consist of the concentrate manufactures, bottles and the sales and
distribution network of the companies the rule and responsibilities of each of them are
different.

The major activity taken up by the concentrate manufactures relates to the production of the
basic product which is battled by the battling plants mostly independents and subsequently
sold through the established distribution set ups of the respective companies. Incidentally a
lion’s share of the total sales of the product of most of the companies is through fountain a
sale which sums to be the most popular outlet in the western countries. Through in India
fountain sales from a very insignificant part of the sales revenue. During the initial stag both
soft drink majors used a network of independent bottlers to bottle and market their products.
Independents bottling arose primarily because it was not possible to create an effective
organization for operating a vertically integrated company with hundreds of geographically
separated manufacturing unit and local delivery operations given the limited transportation
and communication system of the time and the lack of sophisticated financial and
management controls.

Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental
competitive advantage that allowed that to compete so effectively lies in their ability to
operate through a very cumbersome distribution system.

In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft
Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys
introduced Thumps up in the beginning of 1980s. By the end of 80’s Parley with Limca, gold
spot and Thumps up emerged as clear winner with around 60% market share.

13 | P a g e
In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This
proposal as rejected on the grounds that the import of concentrate could not be agrees and the
use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this
time in collaboration with Punjab agro Corporation (PIAC) and Volta’s India Limited and
succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of ‘Lehar
Pepsi’.

The most strategic step taken by Coca Cola was the purchase of Parley brands. With this coke
instantly had the ownership of countries tap soft drinks brands as well as got access to Parleys
extensive 54 plants bottling as well as a pre-set distribution network. This purchase gave coke
an over might lead occur rival Pepsi which had come almost 5 year earlier.

GROWTH AND PRESENT STATUS OF THE INDUSTRY

The total value of the soft drink industry was $48 billion in 1990’s. The average in the states
48 gallons per year. Industry analyst contended that the soft drink industry had plateaued, and
that total consumption was unlikely to increase significantly in the near future. As a
consequence, the cola wars were moving to international markets. Although, after the mid
90’s both company found a different strategy fuelled by the twin engines of innovation and
diversity. Consumers are drinking a widening assortment of beverages. There is increasing
demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks
(tea and coffee), and replenishment drinks (sports drinks and water). Coke, the world’s
largest soft drink company with a 45% share of the worldwide soft drink market, earned 80%
of its profits outside of the United States in 1993. In according to this, Pepsi, with only 15%
of its beverage operating profits coming from overseas was using “guerrilla warfare” to
attack Coke in selected international markets. Americans consumed 23 gallons of soft drinks
a year in 1970 compared to 48 gallons in 1993. This growth was fuelled by increasing
availability and affordability of soft drinks in the marketplace, as well as the introduction and
growth of diet soft drinks. And then become stabile. For improve profits on the saturated
market was possible by cost reduction, new products but not cannibalize your products, and
better value chain that returns you as a competitive advantage. It was not easy. There were
many alternative to soft drinks ; coffee, beer, milk, tea, bottled water, juices, powdered
drinks, wine, distilled spirits, and tap water. The 1980s Pepsi and Coke transformed their
businesses. These consumer-oriented businesses experienced changes in the forces impacting

14 | P a g e
key strategy areas: investment; distribution channels; trade and manufacturer relations;
shareholder pressure; marketing and promotional programme design; new competitors and
proliferation of products across their traditional categories, etc. Using 1978 as a base year, the
Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink price
growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola
segment of the soft drink industry held the dominant (68%) share of the market in 1992,
followed by lemon/lime with 12%, pepper flavour 7%, orange 3%, root beer 2%, and others
8%. Coke and Pepsi had a combined 73% of the soft drink market.

Pepsi and Coca-Cola have more than 200 different products globally in 2000.

15 | P a g e
1.2- History and prospective of an organization
History of soft drinks

The first marketed soft drinks appeared in the 17th century as a mixture of water and lemon
juice sweetened with honey. In 1676 the Compagnie de Limonadiers was formed in Paris and
granted a monopoly for the sale of its products. Vendors carried tanks on their backs from
which they dispensed cups of lemonade.

Carbonated beverages and waters were developed from European attempts in the 17th
century to imitate the popular and naturally effervescent waters of famous springs, with
primary interest in their reputed therapeutic values. The effervescent feature of the waters
was recognized early as most important. Flemish scientist Jan Baptista van Helmont first used
the term gas in his reference to the carbon dioxide content. French physician Gabriel Venel
referred to aerated water, confusing the gas with ordinary air. British scientist Joseph Black
named the gaseous constituent fixed air.

Robert Boyle, an Anglo-Irish philosopher and scientist who helped found modern chemistry,
published his Short Memoirs for the Natural Experimental History of Mineral Waters in
1685. It included sections on examining mineral springs, on the properties of the water, on its
effects upon the human body, and, lastly, “of the imitation of natural medicinal waters by
chymical and other artificial wayes.”

Numerous reports of experiments and investigations were included in the Philosophical


Transactions of the Royal Society of London in the late 1700s, including the studies of
Stephen Hales, Joseph Black, David Macbride, William Brownrigg, Henry Cavendish, and
Thomas Lane.

Impact of soft drinks to health and economy: a critical review

Soft drinks are often high in sugar content and acidity. Each gram of sugar contains 4
calories. In addition, they supply energy only and are of little nutritional benefit. Several
studies have shown that soft drink with high sugar and acid content consumption can

16 | P a g e
contribute to detrimental general and oral health effects on children and adolescents including
an increased risk of overweight, obesity, type 2 diabetes, dental caries and dental erosion

Obesity has recently emerged as a major global health problem. The World Health
Organisation (WHO) and Scientific Advisory Committee on Nutrition (SACN) recommend a
diet where a maximum 5% of the energy comes from free sugars. The SACN (2015) reported
that nearly a third of children aged 2–15 years living in the UK are overweight or obese, and
that younger generations are becoming obese at earlier ages and staying so for longer. In the
USA, two out of three adults and one out of three children are overweight or obese with over
18% of 6–19 year olds are above the 95th percentiles of body mass index (BMI), for age and
gender .

A rising consumption of sugar-containing soft drinks has been suggested as a major


contributor to the obesity epidemic. The increase in intake of sugar-containing soft drink has
coincided with rising body weights and energy intakes in several populations. In the USA, the
per capita annual consumption of regular soft drink increased by 86% between 1970 and
1997 alone. During that period of time, the prevalence of obesity rose by 112%.

Overweight and obesity can have major costs for individuals and their families as well as for
the health care systems. It increases the risk of developing type 2 diabetes and heart disease
as well as doubles the risk of dying prematurely.

Type 2 diabetes has also emerged as a global public health concern, parallel to the global
trends in the prevalence of obesity. Along with the increased consumption of soft drinks,
there has been a rapid and large increase in the reported incidence of type 2 diabetes (Hu and
Malik 2010; Greenwood et al. 2014).

In a systematic review by Vartanian et al. (2011), high consumption of soft drinks was related
to low consumption of milk, calcium, fruit and dietary fibres contributing to an overall poorer
diet. In addition, in two studies by Whiting et al. (2001) and McGartland et al. (2003), the
high intake of carbonated soft drinks during adolescence was significantly associated with
reduced bone mineral density among girls aged 12 and 15 years. Calcium is found mainly in
dairy products and is an essential nutrient for the structural integrity of bone and for
maintaining bone density throughout life whereas, carbonated soft drinks contain mostly
empty calories.

17 | P a g e
Energy drinks are often high in caffeine to enhance mental and physical performance, and
improve alertness, and concentration. The amount of caffeine in most of the energy drinks is
usually three times the concentration in cola drinks. They are available in the market of more
than 140 countries and are the fastest growing soft drink sector not only in the USA and UK
but also worldwide.

Although moderate consumption of caffeine can be tolerated by most healthy people, studies
showed that its high consumption (> 400 mg per day) has been associated with adverse
effects on health including anxiety, restlessness, aggression, headaches, and depression. A
prolonged exposure to high intakes of caffeine, levels greater than 500–600 mg a day, can
result in chronic toxicity leading to nervousness, nausea, vomiting, seizures and
cardiovascular symptoms in severe cases.

COMPANY PROFILE

GLIMPSES ON THE BIRTH OF COCA-COLA

John Smyth first introduced the refreshing taste of Coca Cola in Atlanta. It was May of 1886
when he first “distributed “ the new product carrying Coca-Cola in a jug down the street to
Jacobs Pharmacy. For five cents, consumers could enjoy 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. John .S.
Pemberton and bookkeeper frank M Robinson, suggested the name and panned it Coca cola
in the unique flowing script that is famous worldwide today. By 1886, sales of Coca-Cola
averaged nine drinks per day. That first year, Dr Pemberton 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. In 1891, Atlanta entrepreneur, G. Candler had acquired complete
ownership of the Coca-Cola business. With in four years, his merchandising flair helped
expand consumption of Coca-Cola every state and territory. In 1919 Coca Cola Company
was sold to group of inventors for $25 million. Robert W.Woodruff became president of the
Coca Cola in 1923, and his more then six decades of leadership took the business to
unrivalled heights of commercial success making Coca Cola an institution the world over.

In the year of 1990, over one hundred years after the soft drink was invented, the Coca- Cola
company opened up a museum like building which was designed to be a tribute to its famous
soft drink product. It is also said to be a tribute to the countless number of consumers who

18 | P a g e
drink Coca-Cola. The world of Coca-Cola, as it is called is located in Atlanta, Georgia right
amidst the tourist district. And, its tribute to the soft drink is because it is so popular that it is
now served daily in nearly two hundred countries. Having the museum located in Atlanta is
fitting because long before anyone had ever heard of Coca-Cola, a doctor by the name of
Johan Stythe Pemberton, who was a druggist in Atlanta, mixed up his own concoction of
medicinal syrup in May in the year of 1886, Dr. Pemberton used Africa. Kola Nut extracts
and coca leaves, which are both strong stimulants, in his potion. The result was Q thick
caramel colored syrup. The purpose of the potion was to be an effective tonic which would
help a person's brain and nerves function better. True or not, it has been said that a customer
came into the pharmacy one day complaining or a headache. He asked for a glass of Coca-
Cola to be made with carbonated water instead of plain water and the carbonated version of
the soft drink was the born.

19 | P a g e
CHAPTER 2
RESEARCH DESIGN

20 | P a g e
2.1 LITERATURE REVIEW

Founded in 1886 in Atlanta, Coca-Cola Company is the world’s leading manufacturer,


marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce
more than 230 beverage brands. It is also the world’s most inclusive brand and company.

It has already ventured regionally out of Atlanta to other states of United States since the late
19th century and its signature contour bottle was first manufactured in the early 20th century
to distinguish themselves and assuring the genuine Coca-Cola. Though the company grew
rapidly and roared into some European countries during the 1900s, its presence worldwide
grew swiftly only after World War II.

Year after year, the company has been discovering new foreign markets to bring higher
profits as to fulfil its ultimate obligation to provide consistently attractive returns to the
owners of the company and to enlarge its customer base in order to achieve economies of
scale. Due to strong competition with Pepsi-Cola, Coca-Cola wants to reduce its dependence
on United States market, which is their similar domestic market, as to reduce its risk and
increase its global market share by going international. Presently, the company has already
reached six billion consumers in nearly two hundred countries.

Coca-Cola Company has been very successful in international marketing effort. Aggressive
advertising, branding and market segmentation have played an important part in the success.
It has portrayed itself as fun, playfulness, freedom, lifestyle and the international appeal of
Coca-Cola was embodied by a 1971 commercial, where a group of young people from all
over the world to a hilltop in Italy to sing “I’ll like to buy the world a Coke”.

The company has been sponsoring big events, like Olympics, Sea Games, FIFA Cup, and
International Film Festivals all over the world to create awareness, credibility and to brand
itself as world-class company. It also makes big donations to organizations, charities and

21 | P a g e
involvement in the communities. These activities have aided Coca-Cola in creating a positive
image and consumers’ perception toward the company.

Though the company makes the world its target market, segmenting by diverse consumer
preferences would still require to help Coca-Cola to serve the consumers better. As different
segments of different countries have various preferences or cultures, Coca-Cola tried to
expand with new flavours, brands and even reduced the sugar contents in its Coke, to suit all
the different segments. This often increases the acceptance of new drinks that are specially
designed for them.

Coca-Cola entered foreign markets in various ways. The most common modes of entry are
direct exporting, licensing and franchising. Besides beverages and their special syrups, Coca-
Cola also directly exports its merchandise to overseas distributors and companies. Other than
exporting, the company markets internationally by licensing bottlers around the world and
supplying them with the syrup needed to produce the product.

There are different types of franchising. The type that is used by Coca-Cola Company is
manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but
the only difference is that the finished products are sold to the retailers in local market.

Foreign environment factors have influenced the Coca-Cola’s strategies in international


marketing. Culture has a tremendous effect on people’s preferences and perception.
Language is one of the aspects of culture that marketers must take care of, in term of
translating product name, slogans and promotional messages so as not to convey the wrong
meaning. Coca-Cola did not look much into this aspect when entering into the markets of
countries like China and Taiwan as the literal translation of Coca-Cola in Chinese characters
mean, “bite the wax tadpole”.

Political structure and legal considerations also have impinged on Coco-Cola Company’s
strategies. Governments of some Arab nations boycotted Coca-Cola’s products due to a
political dispute and discontented with the company for maintaining distributors in Israel.

Changes are necessary in international marketing for consumer’s products, as it is important


that the products suit one’s taste, preferences and fulfil one’s needs. Coca-Cola has continued
changing, improving and developing new drinks to appeal to local tastes.

22 | P a g e
After discovering that Coke did not appeal as much too Japanese consumers, Coca-Cola
developed over 30 new drinks for the Japanese market, which inclusive of Asian tea, English
tea, coffee and fermented-milk drink.

In China, Coca-Cola has also begun the similar strategy of introducing beverages developed
for the taste buds of local market. It launched a fruit juice drink called Tian Yu Di (Heaven
and Earth) specifically for the Chinese market with planning of introducing the market with a
Chinese iced tea and soy milk drink. Being flexible and willing to change to satisfy
consumers’ needs, has enabled Coca-Cola to exploit the economies of scale that was gained
by its global marketing and at the same time making its products appeal to local taste, which
these have earned the company an enormous profits quarterly.

As Coca-Cola has expanded over the decades or even nearly a century, the company has
benefited from the various cultural insights and perspectives of the societies in which
business is done. No doubt of the remarkable experience it has, it is still very committed to
local markets, to paying attention to what people from different cultures and backgrounds like
to drink, and where and how they like to drink it, to remain competitive and to develop more
new drinks to satisfy its markets.

Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50
percent in beverage industry globally and about 70 percent of its income comes from
countries outside United States. Every 10 seconds, 126,000 people in the whole world,
choose to reach out for one of The Coca-Cola Company brands, and it is the company’s
mission to make that choice exciting and satisfying, every single time.

Not only to make great drinks, Coca-Cola is also determined to contribute to communities
around the world through its commitments to education, health, wellness, and diversity and
consistently shaping its business decisions to improve the quality of life in the communities
in which the company do business.

Consumption may be defined as use of final goods by a consumer until disposal. Final goods
are goods that are ultimately consumed rather than used in the production of another good. A
pattern is the repeated or regular way in which something happens or is done. The research is
regarding consumption pattern of cold drink and fruit juice. In cold drink especially Coca
cola is taken into consideration and in fruit juice especially Tropicana of mango flavour is
taken in to consideration. There are many youngsters and middle and old age group person
give importance to fruit juice because of rising level of health consciousness. The purpose of

23 | P a g e
writing this literature review is to make comparison between coca cola and tropical of mango
flavour as far as consumption is concerned.

2.2- NEED OF THE STUDY

 I’m doing this study to find out that how Coca-Cola is at the top in the market.
 What are the various strategies it uses in order to remain at the top?
 How it attracts the customers.
 How it retains its customers towards its product.
 To know what is the consumer prospective about the coca cola brand.
 The most important activity of marketing is to study consumer market and also
analysing of buying behaviour of the consumer.
 The entry of various brands in soft drink industry has made severe cut throat
competition. All organizations are coming out with new promotional tools on
attracting features, which has severe impact on sales.
 To understand how coke become a reliable product.

24 | P a g e
2.3 SCOPE OF STUDY

By this research it is more useful to know the personal opinion and also the consumer
behaviour towards the packs of soft drinks. There are more number of branded products
which has been highly attracted by general public and also a fair response to discount offers.
The study brings out information about the consumer‘s preferences, the brands they prefer
and the reason for their preference and which factor attracted them to buy the product.

The study claims the effective impact of the unconventional yet creative marketing
strategies adopted by Coca-Cola segmented towards the Indian market and targeted towards
the millennial whose ages range from 15-25 and positioned as a beverage suiting multiple
occasions whether be it family gatherings or friendly outings. The study aims to create an
equilibrium between the segmentation and targeting of different types of customers in a
specific geographic location and expresses the effect of different types of marketing
strategies on different types of customers subjected towards the manner in which the product,
in this case, Coca-Cola, is positioned in the market. The study, thereby, also explains that the
millennial are the targeted customers which are the most responsive individuals in the
market for ideation beverages such as Coca Cola which is at the top of the industrial
food chain as per customer preferences because of the popular brand image and the footfall
that the company has.

25 | P a g e
2.4 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE:

 To study the consumer behaviour towards coca cola.

SECONDARY OBJECTIVES:

 To identify the awareness of Coca-Cola soft drinks.


 To find out the various factors that influences consumers in buying of coca cola.
 To know the consumers opinion towards different brands of soft drinks.
 To suggests the strategies for promoting the sales of Coca-Cola soft drinks.

2.5- RESEARCH METHODOLOGY

Research is a growing need in any organization of the present world. It is helpful in


identifying the consumer needs and wants so as to launch a product or to bring about
improvements in the existing products. This is done to gain competitive edge over
33333333others. Success of the research depends upon the methodology adopted. The
study was based on descriptive research.

 The research methodology deals with the

1. Data collection

2. Research technique

3. Sampling methods

26 | P a g e
4. Analysis and Interpretation of research work.

RESEARCH DESIGN:

A research design is purely and simply the frame work of plan for a study the guides the
collection and analysis of data. It is a blue print for a complete study. It resembles the
architects blue print map for a constructing a house.

TYPE OF PROJECT

DESCRIPTIVE REASEARCH DESIGN

A descriptive research is undertaken in order to ascertain and be able to describe


the characteristics of the variable of interest in a situation. Descriptive research is also
undertaken to understand the characteristics of organizations that follow certain common
practices. The goal of a descriptive research is to offer to the researcher a profile or to
describe relevant aspects of the phenomena of interest from an individual, organizational,
industry-oriented, or other perspective.

SAMPLING TECHNIQUE

A sample is a subset of population and it comprises some members selected from it.
Sampling is the process of selecting a sufficient number of elements from the population.

 Sample survey:

A survey which is carried out using a sampling method, i.e., in which a proportion only
and not the whole population, is surveyed.

 Sampling designs:

There are two types of sampling designs. They are probability and non- probability
sampling.

 Probability sampling:

In probability sampling the elements in the population have some known chance or
probability of being selected as sample subjects.

 Non- probability sampling:

27 | P a g e
The elements in the population do not have any probability attached to their being
chosen as sample subjects. This means that the findings from the study of the sample
cannot confidently generalized to the population.

RESEARCH DESIGN AND METHODOLOGY

The project will involve a study the importance of strategic management and sales promotion
strategies schemes in the soft drinks industry.

. The study will include following parameters.

 Top of the mind recall.


 Brand awareness about an advertisement.
 The use of celebrity in a particular campaign and their impact.
The mode of the data collection would include both primary and secondary.

The impact of sale promotion schemes would measure on:

 Their visibility.
 Recall value of a post schemes.
 Acceptability of the current scheme by the customers and sales force.
For this purpose both primary and secondary data would be collected.

For clarification certain annexure of ads and sales promotion schemes are added in the end.

The project work started with the collection of secondary data from various sources such as

newspaper, magazines, journals and web sites. Along side two questionnaires were also

prepared one aimed at consumers and the other aimed at retailers together primary data,

regarding the influence and effect of Advertising and sales promotion schemes on the sales of

soft drinks (Carbonated Soft drinks).

28 | P a g e
This research includes:

 Problem identification

 Scope of study

 Objective of study

 Research design

 Sampling plan

 Method of data collection

 Sources of data collection

 Limitations

1. Problem Identification:

Marketer should be aware of the perception of customer about his product so that he can gain

maximum out of it. He should be aware of who are decision maker as well as ultimate buyer

of product.

2. Scope of study:

The scope of this study is kept within the control of individual researcher.

3. Research Design:

The method adopted for research is “Experience Survey” i.e. survey of people who have

practical experience of soft drinks in Sagar, in such a research design the decision regarding

what, where, whom, how much, by what means are concerned. It is the blue print for the

research undertaken.

Measurement and Scaling Technique for Research:

29 | P a g e
In this research the rating scale technique is used. Rating scale involves qualitative

description of a limited no of aspects of thing or of traits of a person. In rating scale we judge

properties of objects without reference with other similar object.

The ranking can be done by graphic rating scale as:

 Like very much

 Like some what

 Natural

 Dislike some what

 Dislike very much

5. Sampling Plan:

It includes sample unit, sample size, sample procedure.

Sample Unit: Sample unit is target population of SAGAR.

Sample size: Research is done on 200 respondents of SAGAR.

6. Method of data collection:

 Observation method

 Questionnaire method

 Data collection through journal, magazines

 Data collection through websites of various Soft Drink’s related companies.

7. Sources of data collection:

Primary sources: Sample survey of target population

Secondary sources: Company pamphlet’s, different journal such as A+M, Business

magazine as business world, business India, industry manual and web sides.

30 | P a g e
8. Limitations of Study:

 Resources for collection of data are less.

 Time period for data collection is short

 Difficult to get response from customer.

 Experience in field of research is difficult job.

Statistical Methods and tools used for data analysis


Analysing the data collected form respondents various mathematical strategies were used to
test various hypothesis and obtain the result of research question.

Primary method – These are the data that are freshly collected from the respondents. The
primary data was collected by the means of structured questionnaire.

Analysis Instrument:

In this study, we have used Percentage Method, pie charts and Bar Charts for the analysis and
interpretation of findings.

Percentage Method: It was used to draw specific interferences from the collected data that is
to fulfil the objective of findings

➢Formula: 𝒑 = 𝑸 /𝑹 ∗ 100

Where, P = Percentage

Q = No. of Respondents to be measured.

R = Total no. of respondents

Column Chart:

The column chart is graphical representation of the data. Column charts display vertical bars
going across the chart horizontally, with the value axis being displayed on the left side of the
chart.

31 | P a g e
Pie chart:

A pie chart is a circular statistical graphic, which is divided into slices to illustrate numerical
proportion.

CHAPTER-3
DATA ANALYSIS AND
INTREPRETATION

32 | P a g e
ANALYSIS OF DATA

CHART: 3.1 showing the age group of different respondents.

33 | P a g e
The CHART: 3.1 shows that the number of respondents between the age group of 0-18 is
2.6% where as the number of respondents between the age group of 18-25 is 71.9% which is
maximum number of people that have responded out of 114, the age group from 25-35 is the
second large number of respondents, and after that it comes the age group from 35-45 in
which there is no response, in the last age group, which is 45+ the number of respondents is
0.9%.

So from the 1st question we can come to know that the maximum number of
respondents is between the age group of 18-25.

CHART: 3.2 showing the responses of male and female

34 | P a g e
The diagram shows that the number of females who have responded in comparison to male
respondents is 43.9% which is little less, but I think it’s a quite good ratio for analysis.
And the number of male respondents is 56.1% which is little more than females.
Whereas no one has opted the option prefer not to say.

CHART: 3.3 showing who are student, employed and umemployed.

35 | P a g e
The maximum number of people that have responded are the students which is 64.9%.

And the employed people who have responded are 27.2%.

Whereas the least responds is of the unemployed people which is 7.9%.

CHART: 3.4 shows why consumer asks for particular brand?

36 | P a g e
With the help of CHART 3.4 we come to know that, it is the taste i.e. 54.4% due to which
consumer asks for a particular brand of the soft drinks, advertising and promotion comes
after that which is 9.6%, after that it come availability and price which is 7%.
The brand preference is 21.1% and the scheme had a very little impact on customer i.e 0.9%

CHART: 3.5 shows the attributes that influence you to purchase Coca-Cola

37 | P a g e
From the CHART 3.5 we can say that it is the brand name that influence you to purchase
Coca-Cola which is 59.6% in the above CHART. The company also influence but it is less,
when it comes to comparison with brand name. Consumer pull is 14% and the last is
promotional scheme which is 5.6%.

So we can say that it is the brand name of the company that influence the people to buy
the Coca-Cola.

CHART: 3.6 shows major reason behind the sale of Coca-Cola

38 | P a g e
CHART 3.6 shows the major sale of Coca-Cola is due to brand name which is 37.7% after
that some respondents have responded for the unique taste which is 31.6%, where as some
people have opted for advertising i.e 13.2% and availability i.e 11.4%

So the responds that we get from this questionnaire shows that the major sales of the
Coca-Cola is due to its brand name

39 | P a g e
CHART: 3.6 shows that the promotional scheme of the company had any affect
in the sales of soft drink brands

As from the figure 3.6 you can see that the promotional scheme of the soft drink have the
effect on the sales of the cold drinks. The respondents that have opted for yes is 91.2%
whereas the respondents that have opted for the option no is 8.8%.

CHART 3.7 shows the satisfaction of the customers towards Coca-Cola

40 | P a g e
From the above chart you can see that the customers who are very satisfied with Coca-Cola
are 26.3% the customers who are satisfied with Coca-Cola are 46.5% which is the highest
percentage, and the average answer for that is 22.8%, whereas the customers who are
dissatisfied with the Coca-Cola are 4.4%.

CHART: 3.7 shows the purchasing behaviour of consumer towards Coca-Cola.

41 | P a g e
As from this chart 3.7 we come to know that most of the customers buys coke once in a week
i.e. 69.3%, where as 14.9% people buys coke twice in a week, the people who buys the coke
3 times or more a week are 14% and the people who buy everyday are 1.8%.

CHART: 3.8 shows the consumer behaviour towards the taste of Coca-Cola.

42 | P a g e
From the chart 3.8 we come to know that the mostly number of people has responded for
good taste, i.e. 48.2%, where as 28.1% of people has opted for very good taste towards
Coca-Cola.

Least number of customers have opted for very bad i.e. 1.8%

CHART 3.9 shows how Coca-Cola compares in comparison for different


products offered by the company?

43 | P a g e
As you can see that from the above chart 3.9 most of the people have selected for the
option that is somewhat better which is 42.1% where as 34.2% have selected for
somewhat better.

3.10 CHART shows that what people dislike about Coca-Cola.

44 | P a g e
From the above figure 3.10 you can see that 62.3% respondents have selected none of
above and 17.5% have selected for bottle ergonomics where as 11.4% have selected for
taste whereas only 8.8 have selected for the price.
This means from the above questionnaire out of given options most of the people select
the option none of above, therefore we come to know that most of the people like the coca
cola

3.10 CHART shows that how respondents rate Coca-Cola value for money.

45 | P a g e
As from the above chart that is 3.10 you can see that 44.7% people have
responded for the average option and 33.3% have selected for above
average, whereas 6(5.3) have selected for the below average and 15.8% have
selected for excellent and only 0.9% of respondents have opted for the poor
option.

.
3.11 CHART
From the above chart that is 3.11 you can see the responses that how long have been the
people are using the Coca-Cola

46 | P a g e
The chart 3.11 shows that most number of peoples using Coca-Cola is 80.7, and the
people who are using Coca-Cola from 1-2 years are 9(7.9%), whereas the people who are
using Coca-Cola less than six months are 7.9%.

GRAPH 1.1

47 | P a g e
Graph 1.1 shows that the number of respondents that wants to recommend Coca-Cola to
their friends or colleagues out of 5.You can see that out 39.5% respondents have opted for 4
ratings out of 5, whereas only 6.1% have given the ratings of 1, and 8.8% have given the
ratings of 2 out of 5 and 31.6% have given the ratings of 5 out of 5 to recommend Coca-Cola
to their friends and colleagues.

CHAPTER 4
SUMMARY
AND

48 | P a g e
CONCLUSION

FINDINGS OF PROJECT
 According to my research majority of respondents were of age 18-25
which comprises of 72%.
 On the basis of gender majority were male respondents at 56%.
 Most of the respondents said advertising and promotion were the main
reason a for a particular brand.
 In this analysis it was found that brand name was the major reason behind
sale of Coca-Cola.
 Most of the respondents responded that brand name was the major
attribute that influence them to purchase Coca-Cola.
 92% of respondents said that the promotional scheme of the company
have an effect on the sales of Coca-Cola.
 Approximately 47 % said that they are satisfied with the Coca-Cola brand

49 | P a g e
 In this analysis we find out that 70% of costumers purchase coca –cola
products once a week.
 Majority of customers responded that coca- colas products taste good
 42% of customers said that Coca-Cola offered good product as compared
to competition.
 62% of customers responded that they don’t dislike anything about
Coca-Cola
 Majority of customers rate Coca-Cola products as average value for
money
 80% of customers responded that they use Coca-Cola products more than
3 years.

CONCLUSION:
Research is always done with the main aim of contributing to the Society. If whatever
researcher has done is research to find out result and conclusion than that research has no
value. In short we can say that it cannot be termed as research so research must be done for
the betterment of Society. In the present research the researcher has tried his best level of data
collected and tried to give finest possible Solution.

Our purpose was to examine the consumer behaviour towards Coca-Cola to study this we
made the questionnaire and distributed among various group of respondents and we got most
of the responses btw young generation between 18-25.

Coca-Cola as a brand has long history of being a leader in carbonated so mostly everyone has
consumed Coca-Cola once in their lifetime, despite Coca-Cola being not so healthy drink,
Coca-Cola has maintained a study revenue due to its advertising and promotion basis, it is
also readily available in every nook and corner, everyone is aware of its presence and it pulls

50 | P a g e
its consumer due to its brand name. The brand strategy of Coca-Cola is very strong despite
the fact that people are becoming more and more health-conscious.

So in this project report, we wanted to study the majority what are the various factor that are
contributed in the growth he Coca-Cola for such a long period despite the fact they haven’t
change the product over the year. We wanted to know about the customers prospective
toward the marketing strategies employed by Coca-Cola, we also wanted to know that do
promotions of brand affect the sales of the Coca-Cola.

We also wanted to know how satisfied people are with Coca-Cola as a brand and the majority
of customers are satisfied with coca-cola, the research also tries to understand how often a
customers purchase the Coca-Cola product and majority of customers admitted that the use
Coca-Cola product once a week. There is also positive outlook among customers regarding
the taste of Coca-Cola.

BIBLIOGRAPHY
Websites:-

https://www.britannica.com/topic/soft-drink

https://toaz.info/doc-view

www.coca-cola.com
https://www.coca-colacompany.com/

Books:-

Philip Kotler: : Marketing Management

51 | P a g e
Chunawall S.A. : Essentials of Marketing Research

Kothari : Kothari

Magazines:-

Business world
Coca-Cola company booklet

Newspaper:-

Times of India

Economic times

QUESTIONNAIRE
A study on consumer behaviour towards Coca-Cola

1) Age
a) 0-18
b) 18-25
c) 25-35
d) 35-45
e) 45+

2) Gender

a) male
b) Female
c) Prefer not to say

52 | P a g e
3) Occupation

a) Student
b) Employed
c) Unemployed

4) Why do you think that a consumer ask for a particular brand of soft drink?
Advertising and promotion
a) Price
b) Availability
c) Brand preference
d) Scheme
e) Taste

5) What are the attributes that influence you to purchase coca cola?

a) Company
b) Consumer pull
c) Promotional scheme
d) Brand name

6) Major sale of coca cola is due to?

a) price
b) brand name
c) availability
d) advertising
e) unique taste

7) Does the promotional scheme of the company have any effect on the sales of soft
drinks brands?
a) yes
b) no
8) How satisfied are you with the Coca-Cola brand?

a) Very satisfied
b) Satisfied
c) Average
d) Dissatisfied

9) How often do you purchase Coca-Cola products?


a) Once a week
b) Twice a week
c) Three times or more a week
d) Everyday

53 | P a g e
10) How well do Coca-Cola's products taste?
a) Very good
b) Good
c) OK
d) Bad
e) Very bad

11) In comparison to similar products offered by different companies how do Coca-


Cola's compare?
a) much better
b) Somewhat Better
c) The same
d) Somewhat worse
e) Much worse

12) What do you dislike about the Coca-Cola brand?


a) Price
b) Taste
c) Bottle ergonomics
d) None of the above

13) How would you rate the value for money for their products?

a) Excellent
b) Above average
c) Average
d) Below Average
e) Poor

14) How long have you been a Coca-Cola customer?

a) Less than 6 months


b) Six months to a year
c) 1-2 years
d) or more years
e) I have never bought a Coca-Cola product

15) Which one of the following is your favourite soft drink of Coca Cola Company? 
a) Coca-Cola
b) Fanta
c) Limca
d) sprite

54 | P a g e
16) Which one of the following is your less favourite soft drink of coca coca-company?

a) Fanta
b) Coca- cola
c) minute maid
d) Limca
e) Thumbs-up

17) How likely is it that you would recommend this company to a friend or colleague out
of 5?
a) 1
b) 2
c) 3
d) 4
e) 5

55 | P a g e

You might also like