Submitted by (Babalu Sunil Jadhav) BMS, Semester Vi (ROLL NO. 23272) ACADEMIC YEAR 2022-2023

A PROJECT REPORT ON “Coca-Coca Company and study
of Customer relationship management (CRM)

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
BACHLOR OF MANAGEMENT STUDY (BMS)
UNIVERSITY OF MUMBAI
SUBMITTED BY
(BABALU SUNIL JADHAV)
BMS, SEMESTER VI
(ROLL NO. 23272)
ACADEMIC YEAR 2022-2023
UNDER THE GUIDENCE OF
ASST.PROF . PRIYA SINGH

(PROJECT GUIDE NAME)
KONARK IDEAL COLLEGE OF SCIENCE & COMMERCE KALYAN (E) DIST: THANE
421306
CERTIFICATE
This is to certify that BABALU SUNIL JADHAV has worked and duly completed his project work
for the degree of Bachelor of Management Studies under the Faculty of Commerce in the subject
of Finance and his project is entitled, “ COCA-COLA COMPANY AND STUDY OF CUSTOMER
RELATIONSHIP MANAGEMENT ” undermy supervision.
I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree of any University.
It is his own work and facts reported by his personal findings and investigations.
Chhaya Tiwari Shirin Gonslvez

Project Guide Principal
EXTRNAL EXAMINER
DECLARATION
I the undersigned BABALU SUNIL JADHAV here by, declare that the work embodied in this
project work title “ COCA-COLA COMPANY AND STUDY OF CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) ” forms my own contribution to the research work carried out under the
guidance of Asst.Prof. PRIYA SINGH. is a result of any others university for any other
degree to this or any other university.
Wherever reference has been made top previous works of others it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.
PLACE:
DATE
Student Signature
BABALU JADHAV
ACKNOWLEDGEMENT
It gives me great pleasure to submit this project to the University of Mumbai as a part of
curriculum of my BMS course. I take this opportunity with great pleasure to present before you
this project on (BABALU SUNIL JADAV) which is a result of co-operation, hard work and good
wishes of many people.
No words can adequately express my sincere thanks to all those who have helped me in making
this project a success.
Also, I acknowledge my deep sense of gratitude towards my guide Asst. Professor PRIYA SINGH
I am grateful DR.SHIRIN GONSALVEZ THOMAS Principal of College & Asst. Prof.

PRASAD DESHMUKH
My debt to those who have helped me in one way or the other is heavy indeed. I would like to appreciate
contribution of my family and friends who have extended their complete support in completion of this
project.
Last but not the least; I am thankful to the Almighty for giving me strength, courage and patience
to complete this project.
BABALU SUNIL JADHAV

“Project Report on Coca-Cola Company and study of customer
relationship management (CRM) for Coca-Cola brands with
attribution to Coca-Cola India”
INDEX
SR.NO. CONTENT PAGE NO.

1. EXECUTIVE SUMMARY 6
2. INTRODUCTION 7
Marketing Research 8
Introduction To Coca-Cola 9
3. INDUSTRY PROFILE 12
4. COMPANY PROFILE 18
 Coca-Cola Company 22
 Global Market Share Of Coca-Cola 25
 Trends And Forces 26
 Poster’s Five Forces 31
 Pestle Anaylysis 40
 Swot Analysis 46
 Coca-Cola India 55
 Products In India 57
 Marketing Mix 62
 Pestle Analysis 66
 Swot Analysis 77
5. RESEARCH METHODOLOGY 83
6. DATA ANALYSIS 90
7. SUGGESTIONS & CONCLUSION 102
8. BIBLIOGRAPHY 105
Page 5
EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind.

It outlines the history and current scenario of the Coca-Cola Company globally
and locally. The first part of the study takes us through the present state of
affairs of the beverage industry and Coca-Cola Company globally.
The report contains a brief introductionof Coca Cola Company and Coca-Cola
India and a detailed view of the tasks, which have been undertaken to
analyzethe market of Coca-Cola i.e. we have performed Competitive, PESTLE
and SWOT analysis of Coca-Cola Companyand PESTLE and SWOT analysis
of Coca-Cola India in order to identify areas of potential growth for Coca-Cola.
We have also given a brief description of Trends and Forces that are affecting
Coca-Cola Company globally.
The main objective of this project report is to analyze and studyin efficient way
the current position of Coca- Cola Company. The study also aims to perform
Market Analysis of Coca-Cola Company & find out different factors effecting
the growth of Coca-Cola. Another objective of the study was to perform
Competitive analysis between Coca-Cola and its competitors. Apart from these
objectives this study is also conducted to understand the Customer preferences
towards various Coca-Cola products.
Page 6
INTRODUCTION
Page 7
INTRODUCTON
Let reason go before every enterprise, andcounsel before every
action. Research is a human activity based on intellectual investigation and is
aimed at discovering, interpreting, and revising human knowledge on different
aspects of the world.
MARKETING RESEARCH:-
Marketing research is the function that links the consumer, customer and public
to the marketer through information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements
the data collection process, analyzes and communicates the findings and their
implications
-American Marketing Association
Marketing research is about researching the whole company’s marketing

process
-Palmer (2000)
Page 8
INTRODUCTION TO COCA-COLA
Coca-Cola, the product that has given the world its best-known taste wasborn in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’sleading
manufacturer, marketer and distributor of non-alcoholic beverageconcentrates
and syrups, used to produce nearly 400 beverage brands. Itsells beverage
concentrates and syrups to bottling and canning operators,distributors, fountain
retailers and fountain wholesalers. The Company’sbeverage products comprises
of bottled and canned soft drinks as well asconcentrates, syrups and not-ready-
to-drink powder products. In addition tothis, it also produces and markets sports
drinks, tea and coffee. The Coca-Cola Company began building its global
network in the 1920s. Nowoperating in more than 200 countries and producing
nearly 400 brands, theCoca-Cola system has successfully applied a simple
formula on a globalscale: “Provide a moment of refreshment for a small amount
of money- abillion times a day.”
The Coca-Cola Company and its network of bottlers comprise the

mostsophisticated and pervasive production and distribution system in the
world.More than anything, that system is dedicated to people working long
andhard to sell the products manufactured by the Company. This
uniqueworldwide system has made The Coca-Cola Company the world’s
premiersoft-drink enterprise. From Boston to Beijing, from Montreal to
Moscow,Coca-Cola, more than any other consumer product, has brought
pleasure tothirsty consumers around the globe. For more than 115 years,
Coca-Colahas created a special moment of pleasure for hundreds of millions of
peopleevery day.
Page 9
The Company aims at increasing shareowner value over time. Itaccomplishes

this by working with its business partners to deliversatisfaction and value to
consumers through a worldwide system of superiorbrands and services, thus
increasing brand equity on a global basis. They aim at managing their business
well with people who are stronglycommitted to the Company values and culture
and providing anappropriately controlled environment, to meet business goals
andobjectives. The associates of this Company jointly take responsibility
toensure compliance with the framework of policies and protect theCompany’s
assets and resources whilst limiting business risks.
Page 10
Project Report on Coca-
“Project Coca-Cola
Cola Company and study of customer
relationship management (CRM) for Coca
Coca-Cola
Cola brands with
attribution to Coca--Cola
Cola India”
INDUSTRY PROFILE
Page 11
INDUSTRY PROFILE
A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG) are products that have a quick turnover and relatively low cost.
Consumers generally put less thought into the purchase of FMCG than they do
for other products.
The Indian FMCG industry witnessed significant changes through the 1990s.
Many players had been facing severe problems on account of increased
competition from small and regional players and from slow growth across its
various product categories. As a result, most of the companies were forced to
revamp their product, marketing, distribution and customer service strategies to
strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry
hadchanged significantly. With the liberalization and growth of the
Indianeconomy, the Indian customer witnessed an increasing exposure to
newdomestic and foreign products through different media, such as
televisionand the Internet. Apart from this, social changes such as increase in
thenumber of nuclear families and the growing number of working
couplesresulting in increased spending power also contributed to the increase in
theIndian consumers' personal consumption.
Page 12
The realization of the customer'sgrowing awareness and the need to meet

changing requirements andpreferences on account of changing lifestyles
required theFMCGproducingcompanies to formulate customer-centric
strategies. These changes had apositive impact, leading to the rapid growth in
the FMCG industry. Increased availability of retail space, rapid urbanization,
and qualified manpower also boosted the growth of the organized retailing
sector.
HLL led the way in revolutionizing the product, market, distribution and service
formats of the FMCG industry by focusing on rural markets, direct distribution,
creating new product, distribution and service formats. The FMCG sector also
received a boost by government led initiatives in the 2003 budget such as the
setting up of excise free zones in various parts of the country that witnessed
firms moving away from outsourcing to manufacturing by investing in the
zones.
Though the absolute profit made on FMCG products is relatively small, they
generally sell in large numbers and so the cumulative profit on such products
can be large. Unlike some industries, such as automobiles, computers, and
airlines, FMCG does not suffer from mass layoffs every time the economy starts
to dip. A person may put off buying a car but he will not put off having his
dinner.
Page 13
Unlike other economy sectors, FMCG share float in a steady manner

irrespective of global market dip, because they generally satisfy rather
fundamental, as opposed to luxurious needs. The FMCG sector, which is
growing at the rate of 9% is the fourth largest sector in the Indian Economy and
is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the
South Indian region. It is predicted that in the year 2010, the FMCG sector will
be worth Rs.143000 cr. The sector being one of the biggest sectors of the Indian
Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular)
Page 14
Coca-Cola
Cola brands with
Cola India”
A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA
In India, beverages form an important part of the lives of people. It is an

industry, in which the players constantly innovate, in order to come up with
better products to gain more consumers and satisfy the existing consumers.
BEVERAGES
NON
NON-
ALCOHOLIC
ALCOHOLIC
NON-
CARBONATED
CARBONATED
COLA NON-COLA
COLA NON
NON-COLA
Fig 2.0 BEVERAGES IN INDIA
Page 15
The beverage industry is vast and there various ways of segmenting it, so as to
cater the right product to the right person. The different ways of segmenting it
are as follows :-
 Alcoholic, non-alcoholic and sports beverages.

 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior
citizens.
 Segmentation based on the amount of consumption i.e. high levels of
consumption and low levels of consumption.
If the behavioural patterns of consumers in India are closely noticed, it could

be observed that consumers perceive beverages in two different ways i.e.
beverages are a luxury and that beverages have to be consumed occasionally.
These two perceptions are the biggest challenges faced by the beverage
industry. In order to leverage the beverage industry, it is important to address
this issue so as to encourage regular consumption as well as and to make the
industry more affordable.
Page 16
Four strong strategic elements to increase consumption of the products of the

beverage industry in India are :-
 The quality and the consistency of beverages needs to be enhanced so that

consumers are satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong
and safe feeling that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage
consumption whether in terms of health, taste, relaxation, stimulation,
refreshment, well-being or prestige relevant to the category.
 Communication should be relevant and trendy so that consumers are
able to find an appeal to go out, purchase and consume.
 The beverage market has still to achieve greater penetration and also a
wider spread of distribution. It is important to look at the entire
beverage market, as a big opportunity, for brand and sales growth in
turn to add up to the overall growth of the food and beverage industry in
the economy.
Page 17
Coca-Cola
Cola brands with
Cola India”
COMPANY PROFILE
Page 18
COMPANY PROFILE
MISSION
Our Roadmap starts with our mission, which is enduring. It declares our purpose
as a company and serves as the standard against which we weigh our actions and
decisions.
 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.
VISION
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue
achieving sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the best
they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that
Page 19
anticipate and satisfy people's desires and needs.

 Partners: Nurture a winning network of customers and suppliers, together
we create mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build
and support sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.
WINNING CULTURE
Our Winning Culture defines the attitudes and behaviours that will be required of
us to make our 2020 Vision a reality.
LIVE OUR VALUES
Our values serve as a compass for our actions and describe how we behave in the
world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.
Page 20
FOCUS ON THE MARKET
 Focus on needs of our consumers, customers and franchise partners.

 Get out into the market and listen, observe and learn.
 Possess a world view.
 Focus on execution in the marketplace every day.
 Be insatiably curious.
WORK SMART
 Act with urgency.

 Remain responsive to change.
 Have the courage to change course when needed.
 Remain constructively discontent.
 Work efficiently.
ACT LIKE OWNERS
 Be accountable for our actions and inactions.

 Steward system assets and focus on building value.
 Reward our people for taking risks and finding better ways to solve
problems.
 Learn from our outcomes -- what worked and what didn’t.
BE THE BRAND
Inspire creativity, passion, optimism and fun.
Page 21
HISTORY OF COCA-COLA
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a
coca wine called Pemberton's French Wine Coca. He may have been inspired by
the formidable success of Vin Mariani, a European cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation,

Pemberton responded by developing Coca-Cola, essentially a non-alcoholic
version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta,
Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a
glass at soda fountains, which were popular in the United States at the time due to
the belief that carbonated water was good for the health.[9] Pemberton claimed
Coca-Cola cured many diseases, including morphine addiction, dyspepsia,
neurasthenia, headache, and impotence. Pemberton ran the first advertisement for
the beverage on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola — sold by three separate businesses —

were on the market. Asa Griggs Candler acquired a stake in Pemberton's
company in 1887 and incorporated it as the Coca Cola Company in 1888. The
same year, while suffering from an ongoing addiction to morphine, Pemberton
sold the rights a second time to four more businessmen: J.C. Mayfield, A.O.
Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic
son Charley Pemberton began selling his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the
other two manufacturers could continue to use the formula. So, in the summer of
1888, Candler sold his beverage under the names Yum Yum and Koke. After
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both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in
late 1888, in order to force his two competitors out of the business. Candler
purchased exclusive rights to the formula from John Pemberton, Margaret Dozier
and Woolfolk Walker. However, in 1914, Dozier came forward to claim her
signature on the bill of sale had been forged, and subsequent analysis has
indicated John Pemberton's signature was most likely a forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the

current corporation), and in 1910 Candler had the earliest records of the company
burned, further obscuring its legal origins. By the time of its 50th anniversary, the
drink had reached the status of a national icon in the USA. In 1935, it was
certified kosher by Rabbi Tobias Geffen, after the company made minor changes
in the sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first
outdoor wall advertisement was painted in the same year as well in Cartersville,
Georgia. Cans of Coke first appeared in 1955. The first bottling of Coca-Cola
occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891.
Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn
bottles, very different from the much later hobble-skirt design that is now so
familiar. Asa Candler was tentative about bottling the drink, but two
entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B.
Whitehead, proposed the idea and were so persuasive that Candler signed a
contract giving them control of the procedure for only one dollar. Candler never
collected his dollar, but in 1899 Chattanooga became the site of the first Coca-
Cola bottling company. The loosely termed contract proved to be problematic for
the company for decades to come. Legal matters were not helped by the decision
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of the bottlers to subcontract to other companies, effectively becoming parent

bottlers.Coke concentrate, or Coke syrup, was and is sold separately at
pharmacies in small quantities, as an over-the-counter remedy for nausea or
mildly upset stomach.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the
formula of the drink with "New Coke". Follow-up taste tests revealed that most
consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-
Cola management was unprepared for the public's nostalgia for the old drink,
leading to a backlash. The company gave in to protests and returned to a variation
of the old formula, under the name Coca-Cola Classic on July 10, 1985.
On February 7, 2005, the Coca-Cola Company announced that in the second

quarter of 2005 they planned to launch a Diet Coke product sweetened with the
artificial sweetenersucralose, the same sweetener currently used in Pepsi One. On
March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened
partly with a blend of aspartame and acesulfame potassium. In 2007, Coca-Cola
began to sell a new "healthy soda": Diet Coke with vitamins B 6, B12, magnesium,
niacin, and zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it was revealed
that Coca-Cola would resume operations in Iraq for the first time since the Arab
League boycotted the company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to
"Coca-Cola." The word "Classic" was truncated because "New Coke" was no
longer in production, eliminating the need to differentiate between the two. The
formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of
Page 24
16-ounce bottles sold in parts of the southeastern United States. The change is
part of a larger strategy to rejuvenate the product's image.In November 2009, due
to a dispute over wholesale prices of Coca-Cola products, Costco stopped
restocking its shelves with Coke and Diet Coke.
GLOBAL MARKET SHARE OF COCA-COLA
In 2009, the company generated revenues of $31 billion with $6.8 billion net
income. An increased consumer preference for healthier drinks has resulted in
slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD),
which constitutes 78% of KO’s sales. KO’s profits are also vulnerable to the
volatile costs for the raw materials used to make drinks - such as the corn syrup
used as a sweetener, the aluminium used in cans, and the plastic used in bottles.
Furthermore, slowing consumer spending in Coke's large North American market
compounds the challenge of increasing costs and a weak economic environment.
Finally, Coca-Cola earns approximately 75% of revenue from international sales,
exposing it to currency fluctuations, which are particularly adverse with a
stronger U.S. Dollar (USD).
Despite these challenges, Coca-Cola has remained profitable. Though the non-
CSD market is growing quickly, the traditional CSD market is still large in terms
of both revenues and volume and highly lucrative. The size and variety of KO’s
offerings in the CSD category, coupled with the unparalleled brand equity of the
Coca-Cola trademark, has allowed KO to maintain its share of this important
market. KO has also responded to consumers’ changing tastes with new, non-
CSD product launches and acquisitions such as that of Glaceau in 2007. Strong
international growth has also more than offset a weak domestic market.
On February 25, Coca-Cola Company announced its plan to buy Coca-Cola

Enterprises (CCE) for $12.3 million.[7] Since spinning of Coca-Cola Enterprises
(CCE) 24 years ago, the soft drink market has changed dramatically with
consumers buying fewer soft drinks and more non-carbonated beverages, such as
Powerade and Dasani water. Under the new deal, Coca-Cola Company will take
control of the bottler's North America operations, giving the company control
over 90% of the total North America volume. In return, Coca-Cola
Page 25
Enterpriseswill take over Coke's bottling operations in Norway and Sweden,

becoming a European-focused producer and distributor.
In March 2010, Coca-Cola Company entered into discussions to buy the Russian
juice company, OAO Nidan Juices. The company is 75% owned by a private
equity firm in London and 25% by its Russian founders and controls 14.5% of the
Russian juice market. If successful, the purchase would add to Coca-Cola's 20.5%
market share, passing Pepsi's 30% market share. The Russian juice market is
estimated to be $3.2 billion dollars, and estimates of Nidan's purchase price are
between $560-$620 million.
In April 2010, Coca-Cola Company purchased a majority share of Innocent, the

British fruit smoothie maker. Last year the company bought an 18% share of the
company for more than $45 million, and recent purchases of additional shares
increased Coke's stake to 58%.
In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group

(DPS) $715 million for the continued right to sell their products following the
company's acquisition of Coca-Cola Enterprises (CCE). The deal covers the next
20 years with an option to renew for an additional 20 years.
TRENDS AND FORCES
The Global Economic Recession Threatens Overall Demand

In 2008 and 2009, the global economy has fallen into a recession. Not just the
United States but countries from all over the world have felt the impacts of the
2008 Financial Crisis. This may be a problem for Coke, which derives
approximately 75% of its sales from outside North America. Still, the company
has positioned itself well in international markets both organically and through
acquisitions, such as that of Chinese juice maker Huiyuan for $2.4 billion.
However the company was unsuccessful with its purchase of Huiyuan as it broke
antitrust laws in China.On March 5, 2010, Coke's CEO said that emerging
markets are bouncing back quicker than more developed markets.
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New Aversion to Soda Threatens Main Business
74% of the Coca Cola Company's products are classified as carbonated soft
drinks, making it particularly sensitive to changes in demand for CSD. Consumer
demand for CSD has been negatively affected by concerns about health and
wellness. This is true across most of KO's markets. There has been an increase in
the number of regulations regarding CSD in the United States in response to the
heightened desire for healthy food consumption.
In 2006, many state public school systems banned the sale of soft drinks on their
campuses. The Centre for Science and Public Interest proposed that a warning
label be placed on all beverages containing more than 13g of sugar per 12-oz
serving. This proposal would affect all non-diet, full calorie drinks produced by
KO. These factors have driven a shift in consumption away from CSD to
healthier alternatives, such as tea, juices, and water.
Within the CSD segment consumers have been moving away from sugared
drinks, opting instead for diet beverages, which do not generally contain any
sugar or calories.
Though KO has been somewhat slow to respond to this shift in consumer

preferences, it has recently begun to increase its development of both diet CSD
and non-CSD beverages. KO is faced with the task of balancing the risk of new
innovations with the low growth rates of established brands, a predicament for
manufactures throughout the beverage industry.
Page 27
Integrated Bottler Strategy Increases Flexibility

After CEO Neville Isdell was brought out of retirement in 2004 to revive the then
flagging beverage maker, one of the first areas that he targeted for improvement
was KO's frayed relations with its extensive network of bottlers. Since
consolidating all company-owned bottlers into the Bottling Investments division,
Isdell has continued to increase KO's interest in its bottlers through stake
purchases or outright buyouts. This strategy represents a weakening of the
division between KO's production and distribution operations. Isdell believes that
by combining production and distribution operations the company will have
enhanced its ability to quickly respond to changing market conditions. In KO's
2007 Q3 Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers
Philippines (CCBPI) for double-digit volume growth in that country.
Additionally, KO has signed new agreements with many of its bottlers which
allow them to distribute drinks produced by other companies. For example, Coca-
Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink tea made by
Ferolito, Vultaggio& Sons, an American iced-tea company. Isdell sees these
agreements as another way of taking advantage of the rapidly growing non-CSD
market.
Bottled Water Falling Out of Favour
In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is
emblematic of the bottled water industry as a whole. In August 2009, the Wall
Street Journal reported that sales of bottled water had fallen for the first time in
five years.The combination of the recession and upper class consumers' increased
environmental consciousnesshas lead many customers to cut back on bottled
water in favour of tap water and reusable containers.
Page 28
Following this trend, at least one town in Washington state and one in Australia
have outlawed the selling of bottled water within their city limits. In 2008, bottled
water was the third most popular beverage (behind soda and milk), but compared
to 2007, Americans consumption declined for the first time, down to 8.7 billion
gallons from 8.8 billion gallons. Although this is a seemingly small decrease,
industry experts don't expect bottled water to bounce back anytime soon.
Dollar Affects International Performance
Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar
(USD). Although the company is based in the US, KO derives about 75% of its
operating income from outside United States. Because of this, the company is
very sensitive to the strength of the dollar. As foreign currencies weaken relative
to the dollar, goods sold in foreign markets are suddenly worth fewer dollars back
in the US, lowering earnings. Thus, if the dollar strengthens (as it did in the
second half of 2008 and 2009), it has a negative effect on KO's earnings. Coca-
Cola executives expect currency fluctuations to adversely affect 3Q09 operating
income by 10-12% and 4Q09 operating income by high single digits.
KO has broad exposure to foreign currencies and actively hedges a large portion
of these to avoid wide swings in earnings from currency fluctuations. Although
this hedging insulates from the potential downside of a strengthening dollar, it
also limits larger gains from drastic downswings in the dollar's value.
Commodity Cost Fluctuations Affect Margins
The Coca-Cola Company’s profitability can be affected both directly and

indirectly by the costs of various production inputs. KO itself is responsible for
purchasing the raw materials used to make its concentrates and syrups. Variations
Page 29
in the prices for these goods can affect the company’s total cost of production as
well as its profit margins. Changes in the production costs of bottlers can also
impact KO’s profitability, though in a more indirect way. If the raw materials
necessary for bottling become more expensive, the bottler may be forced to
drastically raise prices to compensate.
Such a price increase would likely hurt KO, given the competitive nature of the
non-alcoholic beverage industry, and provide a possible incentive for consumers
to switch to other companies’ beverages.
Aluminium, corn, and PET resin are three examples of such production goods
used by bottlers that could have significant bearing on the Coca-Cola Company’s
profit margins. In 2007, the prices of these commodities rose drastically with
general commodities bubble and dramatically pressured margins. They receded in
2008, but the possibility of another significant rise in Commodities represents a
constant threat to profits.
Page 30
POTER’S FIVE FORCES
RIVALRY AMONG EXISTING FIRMS
The greatest competition that Coca-cola faces is from the rival sellers within the
industry. Coca-Cola, Pepsi Co, and Cadbury Schweppes are among the largest
competitors in this industry, and they are all globally established which creates a
great amount of competition. Aside from these major players, smaller companies
such as Cott Corporation and National Beverage Company make up the
remaining market share. All five of these companies make a portion of their
profits outside of the United States.
Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet
Coke, Fanta, and Sprite), it had lower sales in 2005 than did PepsiCo (Murray,
2006c). However, Coca-Cola has higher sales in the global market than PepsiCo,
PepsiCo is the main competitor for Coca-Cola and these two brands have been in
a power struggle for years (Murray, 2006c). Coke has been more dominant with a
53% of market share as in 1999 compared to Pepsi with a market share of 21%.
Page 31
According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's

U.S. market share has increased to 30.8%, while the Coca-Cola Company's has
decreased to 42.7% due to Pepsi marketing schemes still the higher large gap
between the market share can be attributed to the fact that Coca-Cola took
advantage of Pepsi entering the market late and has set up its bottler's and
distribution network especially in developed markets.
"The Coca-Cola Company" is the largest soft drink company in the world. Every
year 800,000,000 servings of just "Coca-Cola" are sold in the United States alone.
Bottling plants with some exceptions are locally owned and operated by
independent business people who are native to the nations in which they are
located. Coca-Cola manufactures, distributes and markets non-alcoholic beverage
concentrates and syrups, including fountain syrups.
It supplies concentrates and beverage bases used to make the products and
provides management assistance to help it's bottler's ensure the profitable growth
of their business. This has put Pepsi at a significant disadvantage compared to US
market. Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the
world. However, exceptions include India, Saudi Arabia and Pakistan.
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By most accounts, Coca-Cola was India's leading soft drink until 1977 when it
left India after a new government ordered, The Coca-Cola Company to turn over
its secret formula for Coke and dilute its stake in its Indian unit as required by the
Foreign Exchange Regulation Act (FERA).
In 1988, PepsiCo gained entry to India by creating a joint venture with the
Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and
Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991
when the use of foreign brands was allowed. PepsiCo bought out its partners and
ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in
pursuance of India's Liberalization policy. In 2005, The Coca-Cola Company and
PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola
India's market share was 52.5%.
In Russia, Pepsi initially had a larger market share than Coke but it was undercut
once the Cold War ended. In 1972, Pepsi Co Company struck a barter agreement
with the government of the Soviet Union, in which Pepsi Co was granted
exportation and Western marketing rights to Stolichnaya vodka in exchange for
importation and Soviet marketing of Pepsi-Cola.
This exchange led to Pepsi-Cola being the first foreign product sanctioned for
sale in the U.S.S.R. Pepsi, as one of the first American products in the Soviet
Union, became a symbol of that relationship and the Soviet policy.
Brand name loyalty is another competitive pressure. The Brand Keys Customer
Loyalty Leaders Survey (2004) shows the brands with the greatest customer
Page 33
loyalty in all industries. Diet Pepsi ranked 17th and Diet Coke ranked 36th as
having the most loyal customers to their brands.The new competition between
rival sellers is to create new varieties of soft drinks, such as vanilla and cherry, in
order to increase sales and getting new customers.
Pepsi is however trying to counter this by competing more aggressively in the

emerging economies where the dominance of Coke is not as pronounced, with the
growth in emerging markets significantly expected to exceed the developed
markets, rivalry in international market is going to be more pronounced.
Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke,

supporting Pepsi's positioning as "The Choice of a New Generation." In 1975,
Pepsi began showing people doing blind taste tests called Pepsi Challenge in
which they preferred one product overthe other. Pepsi started hiring more popular
spokespersons to promote their products.
In the late 1990s, Pepsi launched its most successful long-term strategy of the
Cola Wars, Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and
collect Pepsi Points on billions of packages and cups. They could redeem the
points for free Pepsi lifestyle merchandise. After researching and testing the
program for over two years to ensure that it resonated with consumers, Pepsi
launched Pepsi Stuff, which was an instant success.
Tens of millions consumers participated. Pepsi outperformed Coke during the

summer of the Atlanta Olympics, held at Coke's hometown where Coke was the
lead sponsor for the Games. Due to its success, the program was expanded to
include Mountain Dew into Pepsi's international markets worldwide. The
company continued to run the program for many years, continually innovating
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with new features each year.
Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi

Stuff in 2005 & Coca-Cola retaliated with Coke Rewards. This cola war has now
concluded, with Pepsi Stuff ending its services and Coke Rewards still offering
prizes on their website. Both were loyalty programs that give away prizes and
product to consumers after collecting bottle caps and 12 or 24 pack box tops, then
submitting codes online for a certain number of points. However, Pepsi's online
partnership with Amazon allowed consumers to buy various products with their
"Pepsi Points", such as mp3 downloads. Both Coca-Cola and coke previously had
a partnership with the iTunes Store.
POTENTIAL ENTRANTS
New entrants are not a strong competitive pressure for the soft drink industry.
Coca-Cola and Pepsi Co dominate the industry with their strong brand name and
great distribution channels. In addition, the soft-drink industry is fully saturated
and growth is small. This makes it very difficult for new, unknown entrants to
start competing against the existing firms.
Another barrier to entry is the high fixed costs for warehouses, trucks, and labour,
and economies of scale. New entrants cannot compete in price without economies
of scale. These high capital requirements and market saturation make it extremely
difficult for companies to enter the soft drink industry therefore new entrants are
not a strong competitive force.
Capital requirements for producing, promoting, and establishing a new soft drink
traditionally have been viewed as extremely high. According to industry experts,
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this makes the likelihood of potential entry by new players quite low, except
perhaps in much localized situations that matter little to Coke or Pepsi. Yet,
while this view may reflect conventional wisdom, some industry observers
question whether a new time is coming, with 'new age' beverages selling to well-
informed and health-informed and health-conscious consumers. This issue was
beginning to grab the attention of both Coke and Pepsi in the summer of 1992,
when they both were not able to explain a drop in their June 1992 sales.
SUBSTITUTES
Numerous beverages are available as substitutes for soft drinks. Citrus beverages
and fruit juices are the more popular substitutes. Availability of shelf space in
retail stores as well as advertising and promotion traditionally has had a
significant effect on beverage purchasing behaviour. Overall total liquid
consumption in the United States in 1991 included Coca-Cola's 10% share of all
liquid consumption.
“For years the story in the non-alcoholic sector centred on the power struggle
between Coke and Pepsi. But as the pop fight has topped out, the industry's giants
have begun relying on new product flavours and looking to noncarbonated
beverages for growth.”
Substitute products are those competitors that are not in the soft drink industry.
Such substitutes for Coca-Cola products are bottled water, sports drinks, coffee,
and tea, juices etc.
Bottled water and sports drinks are increasingly popular with the trend to be a
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more health conscious consumer. There are progressively more varieties in the
water and sports drinks that appeal to different consumer's tastes, but also appear
healthier than soft drinks.
In addition, coffee and tea are competitive substitutes because they provide
caffeine. The consumers who purchase a lot of soft drinks may substitute coffee if
they want to keep the caffeine and lose the sugar and carbonation.
Blended coffees are also becoming popular with the increasing number of
Starbucks, Barista and CCD stores that offer many different flavours to appeal to
all consumer markets. It is also cheap for consumers to switch to these substitutes
making the threat of substitute products very strong (Datamonitor, 2005).
The growth rate has been recently criticized due to the market saturation of soft
drinks. Datamonitor (2005) stated, “Looking ahead, despite solid growth in
consumption, the global soft drinks market is expected to slightly decelerate,
reflecting stagnation of market prices.” The change attributed to the other
growing sectors of the non-alcoholic industry including tea & coffee is 11.8% and
bottled water is 9.3%. Sports drinks and energy drinks are also expected to
increase in growth as competitors start adopting new product lines.
Profitability in the soft drink industry will remain rather solid, but market
saturation has caused analysts to suspect a slight deceleration of growth in the
industry (2005). Because of this, soft drink leaders are establishing themselves in
alternative markets such as the snack, confections, bottled water, and sports
drinks industries.
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In order for soft drink companies to continue to grow and increase profits they
will need to diversify their product offerings.So in order to compete with the
substitutes industry, coca-cola has diversified from just carbonated drink industry
to other substitute and so have other brands like Pepsi, Dr pepper/Snapple.
BARGANING POWER OF BUYERS

Individual consumers are the ultimate buyers of soft drinks. However, Coke and
Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned,
especially in the case of Coke- to bottle the companies' products and to whom
each company sells its patented syrups or concentrates. While Coke and Pepsi
issue their franchise, these bottlers are in effect the 'conduit' through which these
international cola brands get to local consumers
Through the early 1980's, Coke's domestic bottlers were typically independent
family businesses deriving from franchises issued early in the century. Pepsi had
a collection of similar franchises, plus a few large franchisees that owned many
locations. Until 1980, Coke and Pepsi were somewhat restricted in owning
bottling facilities, which was viewed as a restraint of free trade. Jimmy Carter, a
Coke fan, changed that by signing legislation to allow soft-drink companies to
own bottling companies or territories, plus upholding the territorial integrity of
soft-drink franchises, shortly before he left office.
Also, the three most important channels for soft drinks are supermarkets,
fountain sales, and vending. In 1987, supermarkets accounted for about 40% of
total U.S. soft drink industry sales, fountain sales represented about 25%, and
vending accounted for approximately 13%. Other retailers represent the
remaining percentage.
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While both Coca-Cola and Pepsi distribute their bottled soft drinks through a
network of bottling companies, Coca-Cola uses its own network of wholesalers
for their fountain syrup distribution, and Pepsi distributes its fountain syrup
through its bottlers.
BARGANING POWER SUPPLIERS:

The principal raw material used by the soft-drink industry in the United States is
high fructose corn syrup, a form of sugar, which is available from numerous
domestic sources. The principal raw material used by the soft-drink industry
outside the United States is sucrose. It likewise is available from numerous
sources.
Another raw material increasingly used by the soft-drink industry is aspartame, a

sweetening agent used in low-calorie soft-drink products. Until January 1993,
aspartame was available from just one source -the NutraSweet Company, a
subsidiary of the Monsanto Company- in the United States due to its patent,
which expired at the end of 1992.
Coke managers have long held 'power' over sugar suppliers. They view the
recently expired aspartame patents as only enhancing their power relative to
suppliers.
Page 39
PESTEL ANALYSIS OF COCA- COLA
PESTLE stands for Political, Economic, Social, Technological, Legal and

Environmental. It is a tool that helps the organisations for making strategies and
to know the EXTERNAL environment in which the organisation is working and
is going to work in the future.
Coca-Cola beverage, which is the leading manufacturer and distributor of non-

alcoholic drinks also need to undergo this PESTLE analysis to know about the
external environment (especially their competitors and the opportunities
available) in order to keep pace with the fast growing economy.
POLITICAL ANALYSIS
Political factors are how far a government intervenes in the operations of the
company. The political factors may include tax policy, trade restrictions,
environmental policy, laws imposed on the recruiting labours, amount of
permitted goods by the government and the service provided by the government.
Globally, Coca-Cola beverages being a non-alcoholic industry falls under the

FDA (Food and Drug Administration), it is an agency in the United States
Department of Health and Human Services. Its headquarters is in USA and it has
started opening offices in foreign countries as well. The job of the FDA is to
check and certify whether the ingredients used in the manufacturing of Coca-Cola
products in the particular country is meeting to the standards or not. In Coca-Cola
the company takes all the necessary steps to analyze thoroughly before
introducing any ingredients in its products and get prior approval from the FDA.
The company also has to take into consideration of the regulation imposed by
FDA on plastic bottled products.
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Apart from FDA the other political factors includes tax policies and accounting
standards. The accounting standards used by the company changes from time to
time which have a significant role in the reported results.
The company also is subjected to income tax policies according to the jurisdiction
of various countries. In addition to this, the company is also subjected to import
and excise duties for distribution of the products in the countries where it does not
have the outsourcing units.
Moreover, if there is any unrest or changes in the government and any kind of
protest by the political activists may decline the demand for the products. Also
the situations like the unsure conditions prevailing in Iraq and escalation of the
terrorist activities in these areas could affect the international market of our
product. It creates an inability for the company to penetrate in the markets of such
countries.
ECONOMIC FACTORS
The economic factors analyze the potential areas where the firm can grow and
expand. It includes the economic growth of the country, interest rates, exchange
rates, inflation rates, wage rates and unemployment in the country.
The company first analyzes the economic condition of the country before
venturing into that country. When there is an economic growth in the country, the
purchasing power among people increases. It gives the company or the marketer a
good chance to market the product. Coca-Cola, in the past identified this correctly
and rightly started its distribution across various countries. The net operating
profits for the company outside US stands at around 72%. Along with this the
company uses 63 various types of currencies other than US Dollar. Hence there is
a definite impact in the revenues due to the fluctuating foreign currency exchange
Page 41
rates. A strong and weak currency tends to affect the exporting of the products
globally.
Interest rates are the rate which is imposed on the company for the money they
have borrowed from government. When there is an increase in the interest rates, it
may deter the company in further investment as the cost for borrowing is higher.
Coca-Cola uses derivative financial instruments to cope up with the fluctuating
interest rates. Inflation and wage rate go hand in hand, when there is an increase
in the inflation the employee demand for a higher wage rate to cope up with the
cost of living.
This comes as additional cost for the company which cannot be reflected in the
price of the final product as the competition and risk in this segment is higher.
This is a threat in the external environment faced by the company.From the above
explanation it is clearly seen that the economic factors involves a major impact in
the behaviour of the company during various economic situations.
SOCIAL FACTORS
Social factors are mainly the culture aspects and attitude, health consciousness
among people, population growth with age distribution, emphasis on safety. The
company cannot change the social factors but the company has to adjust itself to
the changing society. The company adapts various management strategies to
adapt to these social trends.
Coca-Cola which is a B2C company, is directly related to the customer, so social

changes are the most important factors to consider. Each and every country has a
unique culture and attitude among the people. It is very important to know about
the culture before marketing in a particular country. Coca-Cola has about 3300+
products in their stable, when entering into a country it does not introduce all the
Page 42
products. It introduces minimum number of products according to the culture of

the country and the attitude of the people.
Consumers and government are becoming increasingly aware of the public health
consequences, mainly obesity which is the second social factor in the soft drinks
industry. It inspired the company to venture into the areas of Diet coke and zero
calorie soft drinks. The problem of obesity is taken seriously among the
youngsters who like to maintain a good physique. Hence coke introduced dietary
products for those youngsters who can enjoy coke with zero calories. In one of
the study it is said that “Consumer from the age groups 37 to 55 are also
increasingly concerned with nutrition”. Since many are aware, they are concerned
with the longevity of their lives. This will affect the demand of the company in
the existing product and also is an opportunity to venture into new health and
energy drinks industry.
Population growth rate and the age distribution is another social factor to be
considered. It is very important because non-alcoholic markets have most of its
share from the children and youngsters. Adults used to celebrate mostly with
alcohol. The age distribution of the country becomes important for the success of
the product in a country.
TECHNOLOGICAL FACTORS
Technology plays a varied role in the soft drinks industry. The manufacturing and
distribution of the products is relatively a Low-Tech business, although the
creation of a new product with the perfect blend and taste is a science (an art in
itself).
Technological contributions are most important in packaging. The company rely

on their bottling partners for a significant portion of their business. Nearly 83% of
Page 43
the worldwide unit case volume is manufactured and distributed by their bottling
partners in whom the company does not have controlling power. Hence it is
necessary for the company to maintain a cordial relation with their bottling
partners. If the company do not give ample support in pricing, marketing and
advertising then the bottling industry while increase their short term profits, may
become detrimental to the company.
The advancement in technology in the company has led to: Introduction of new
ways for the availability of Coca-Cola, it introduced general vending machines all
over the world. In products it led to the development of new products like Cherry
Coke, Diet Coke etc. The technical advancement in the bottling industries
include, introduction of recyclable and non refillable bottles, introduction of cans
which are trendy, stylish and popular among the youngsters.
LEGAL FACTORS
The legal factors include discrimination law, customer law, antitrust law,
employment law and health and safety law. In Coca-Cola the business is
subjected to various laws and regulation in the numerous countries in which they
do the business, the laws include competition, product safety, advertising and
labelling, container deposits, environment protection, labour practices.
In the US the products of the company is subjected to various acts like Federal
Food, Drug and Cosmetic Act, the Federal Trade Commission Act, Occupation
Safety and Health Act, various environment related acts and regulations, the
production, distribution, sale and advertising of all the products are subjected to
various laws and regulations. Changes in these laws could result in increased
costs and capital expenditures, which affects the companyprofitability and also
the production and distribution of the products.
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Various jurisdictions may adopt significant regulations in the additional product

labelling and warning of certain chemical content or perceived health
consequences. These requirements if become applicable in the future the
company must be ready to accept and have necessary changes in hand for the
same.
ENVIRONMENT FACTORS
These factors include the environment such as the weather conditions and the
seasons in which people prefer to buy cool beverages. Also the company must
follow the environmental issues related to the product manufacturing, packaging
and distributing in various countries. It must adhere to the norms and market the
product accordingly. Usage of renewable plastic in the PET bottles is followed by
the company strictly.
Page 45
Coca-Cola
Cola brands with
Cola India”
SWOT
WOT ANALYSIS OF COCA
COCA--COLA
STRENGTHES WEAKNESS
Negative Publicity.
World's leading brand.
Decline in cash from
Large scale of operations.
Operating Activities.
Robust revenue growth in 3
Sluggish Performance in
segments.
North America.
SWOT
ANALYSIS THREATS
OPPORTUNITIES
Acquisitions. Intense Competition.
Growing bottled water Dependence on bottling
market. Patners.
Growing Hispanic Population Sluggish growth of
in U.S. Carbonated beverages.
.
Fig
g 2.1 SWOT ANALYSIS OF COCA
COCA-COLA
COLA
STRENGTHES
WORLD’S LEADING BRAND
Coca-Cola
Cola has strong brand recognition across the globe. The company has a
leadingbrandvalue and a strong brand portfolio. Business
Business-Week
Week and Inter-brand,
Inter
abrandingconsultancy,recognize. Coca
Coca-Cola
Cola as one of the leading brands in
theirtop100globalbrandrankin in2006.The Business Week
theirtop100globalbrandranking Week-Inter
Inter-brand
brand valued
Coca-Cola
Cola at $67,000 million in 2006. Coca
Coca-Cola
Cola ranks well ahead of its close
competitor Pepsi which has a ranking of 22 having a brand value of $12,690
million Furthermore; Coca-Cola
Coca Cola owns a large portfolio of product brands. The
company owns four of the top five soft drink brands in the world: Coca-Cola,
Coca
Diet Coke, Sprite and Fanta.
Page 46
Strong brands allow the company to introduce brand extensions such as Vanilla
Coke,CherryCoke and Coke with Lemon. Over the years, the company has made
large investments in brand promotions. Consequently, Coca-cola is one of the
bestrecognizedglobalbrands.Thecompany’s strong brand value facilitates
customer recall and allows Coca-Cola to penetrate new markets and consolidate
existing ones.
LARGE SCALE OF OPERATIONS
With revenues in excess of $24 billion Coca-Cola has a large scale of operation.
Coca-Cola is the largest manufacturer, distributor and marketer of non-alcoholic
beverage concentrates and syrups in the world. Coco-Cola is selling trademarked
beverage products since the year 1886 in the US. The company currently sells its
products in more than 200 countries. Of the approximately 52 billion beverage
servings of all types consumed worldwide every day, beverages bearing
trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion.
The company’s operations are supported by a strong infrastructure across the

world. Coca-Cola owns and operates 32 principal beverage concentrates and/or
syrup manufacturing plants located throughout the world.
In addition, it owns or has interest in 37 operations with 95 principal beverage

bottling and canning plants located outside the US. The company also owns
bottled water production and still beverage facilities as well as a facility that
manufactures juice concentrates. The company’s large scale of operation allows it
to feed upcoming markets with relative ease and enhances its revenue generation
capacity.
Page 47
ROBUST REVENUE GROWTH IN 3 SEGMENTS
Coca-Cola’s revenues recorded a double digit growth, in three operating

segments. These three segments are Latin America, ‘East, South Asia, and Pacific
Rim’ and Bottling investments. Revenues from Latin America grew by 20.4%
during fiscal 2006, over 2005. During the same period, revenues from ‘East,
South Asia, and Pacific Rim’ grew by 10.6% while revenues from the bottling
investments segment by 19.9%.
Together, the three segments of “Latin America”, “East, South Asia” and “Pacific
Rim” bottling investments, accounted for 34.8% of total revenues during fiscal
2006. Robust revenues growth rates in these segments contributed to top-line
growth for Coca-Cola during 2006.
WEAKNESS
NEGATIVE PUBLICITY
The Coca-Cola Company has been involved in a number of controversies and

lawsuits related to its relationship with human rights violations and other
perceived unethical practices. There have been continuing criticisms regarding
the Coca-Cola Company's relation to the Middle East and U.S. foreign policy.
The company received negative publicity in India during September 2006.The
company was accused by the Centre for Science and Environment (CSE) of
selling products containing pesticide residues. Coca-Cola products sold in and
around the Indian national capital region contained a hazardous pesticide residue.
On 10 December 2008, the US Food and Drug Administration (FDA) wrote to
Page 48
Mr. Muhtar Kent, President and Chief Executive Officer, to warn him that the
FDA had concluded that Coca-Cola's product Diet Coke Plus 20 FL OZ was is in
violation of the Federal Food, Drug, and Cosmetic Act.
In January 2009, the US consumer group the Centre for Science in the Public
Interest filed a class-action lawsuit against Coca-Cola. The lawsuit was in regards
to claims made, along with the company's flavours, of Vitamin Water. Claims say
that the 33 grams of sugar are more harmful than the vitamins and other additives
are helpful.
SLUGGISH PERFORMANCE IN NORTH AMERICA
Coca-Cola’s performance in North America was far from robust. North America
is Coca-Cola’s core market generating about 30% of total revenues during fiscal
2006. Therefore, a strong performance in North America is important for the
company.
In North America the sale of unit cases did not record any growth. Unit case retail
volume in North America decreased 1% primarily due to weak sparkling
beverage trends in the second half of 2006 and decline in the warehouse-delivered
water and juice businesses. Moreover, the company also expects performance in
North America to be weak during 2007. Sluggish performance in North America
could impact the company’s future growth prospects and prevent Coca-Cola from
recording a more robust top-line growth.
DECLINE IN CASH FROM OPERATING ACTIVITIES
The company’s cash flow from operating activities declined during fiscal 2006.
Cash flows from operating activities decreased 7% in 2006 compared to 2005.
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Net cash provided by operating activities reached $5,957 million in 2006, from
$6,423 million in 2005. Coca-Cola’s cash flows from operating activities in 2006
also decreased compared with 2005 as a result of a contribution of approximately
$216 million to a tax-qualified trust to fund retiree medical benefits.
The decrease was also the result of certain marketing accruals recorded in
2005.Decline in cash from operating activities reduces availability of funds for
the company’s investing and financing activities, which, in turn, increases the
company’s exposure to debt markets and fluctuating interest rates.
OPPORTUNITIES
ACQUISITIONS
During 2006, its acquisitions included Kerry Beverages, (KBL), which was
subsequently, reappointed Coca-Cola China Industries (CCCIL). Coca-Cola
acquired a controlling shareholding in KBL, its bottling joint venture with the
Kerry Group, in Hong Kong.
The acquisition extended Coca-Cola’s control over manufacturing and

distribution joint ventures in nine Chinese provinces.
In Germany the company acquired Apollinaris which sells sparkling and still
mineral water. Coca-Cola has also acquired a 100% interest in TJC Holdings, a
bottling company in South
Africa. Coca-Cola also made acquisitions in Australia and New Zealand during
2006. These acquisitions strengthened Coca-Cola’s international operations.
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These also give Coca- Cola an opportunity for growth, through new product
launch or greater penetration of existing markets. Stronger international
operations increase the company’s capacity to penetrate international markets and
also gives it an opportunity to diversity its revenue stream.On 25 February 2010,
Coco cola confirms to acquirethe Coca cola enterprises (CCE) one the biggest
bottler in North America. This strategyof coca cola strengthens its operations
internationally.
GROWING BOTTLED WATER MARKET
Bottled water is one of the fastest-growing segments in the world’s food and
beverage market owing to increasing health concerns. The market for bottled
water in the US generated revenues of about $15.6 billion in 2006.
Market consumption volumes were estimated to be 30 billion litres in 2006. The

market's consumption volume is expected to rise to 38.6 billion units by the end
of 2010. This represents a CAGR of 6.9% during 2005-2010.
In terms of value, the bottled water market is forecast to reach $19.3 billion by the
end of 2010. In the bottled water market, the revenue of flavoured water (water-
based, slightly sweetened refreshment drink) segment is growing by about $10
billion annually. The company’s Dasani brand water is the third best-selling
bottled water in the US. Coca-Cola could leverage its strong position in the
bottled water segment to take advantage of growing demand for flavoured water.
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GROWING HISPANIC POPULATION IN U.S
Hispanics are growing rapidly both in number and economic power. As a result,
they have become more important to marketers than ever before. In 2006, about
11.6 million US households were estimated to be Hispanic. This translates into a
Hispanic population of about 42 million.
The US Census estimates that by 2020, the Hispanic population will reach 60
million or almost 18% of the total US population. The economic influence of
Hispanics is growing even faster than their population. Nielsen Media Research
estimates that the buying power of Hispanics will exceed $1 trillion by 2008- a
55% increase over 2003 levels.
Coca-Cola has extensive operations and an extensive product portfolio in the US.
The company can benefit from an expanding Hispanic population in the US,
which would translate into higher consumption of Coca-Cola products and higher
revenues for the company.
THREATS
INTENSE COMPETITION
Coca-Cola competes in the non-alcoholic beverages segment of the commercial

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

Foods.
Competitive factors impacting the company’s business include pricing,

advertising, sales promotion programs, product innovation, and brand and
trademark development and protection. Intense competition could impact Coca-
Cola’s market share and revenue growth rates.
DEPENDENCE ON BOTTLING PARTNERS
Coca-Cola generates most of its revenues by selling concentrates and syrups to

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

partners, then the partners may take actions that, while maximizing their own
short-term profits, may be detrimental to Coca-Cola. These bottlers may devote
more resources to business opportunities or products other than those beneficial
for Coca-Cola. Such actions could, in the long run, have an adverse effect on
Coca-Cola’s profitability.
In addition, loss of one or more of its major customers by any one of its major
bottling partners could indirectly affect Coca-Cola’s business results. Such
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dependence on third parties is a weak link in Coca-Cola’s operations and

increases the company’s business risks.
SLIGGISH GROWTH OF CARBONATED BEVERAGES
US consumers have started to look for greater variety in their drinks and are
becoming increasingly health conscious. This has led to a decrease in the
consumption of carbonated and other sweetened beverages in the US. The US
carbonated soft drinks market generated total revenues of $63.9 billion in 2005,
this representing a compound annual growth rate (CAGR) of only 0.2% for the
five-year period spanning 2001-2005. The performance of the market is forecast
to decelerate, with an anticipated compound annual rate of change (CAGR) of -
0.3% for the five-year period 2005-2010 expected to drive the market to a value
of $62.9 billion by the end of 2010.
Moreover in the recent years, beverage companies such as Coca-Cola have been
criticized for selling carbonated beverages with high amounts of sugar and
unacceptable levels of dangerous chemical content, and have been implicated for
facilitating poor diet and increasing childhood obesity. Moreover, the US is the
company’s core market. Coca-Cola already expects its performance in the region
to be sluggish during 2007. Coca-Cola’s revenues could be adversely affected by
a slowdown in the UScarbonated beverage market.
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Coca-Cola India was the leading soft drink brand in India till 1977 when it was
forced to close down its operation by a socialist government in the drive for self
sufficiency. After 16 years of absence, coca cola returned to India and witnessed a
different culture and economic platform. During their absence, Parle brothers
introduced a new type of cola called THUMS UP. Along with, they also
formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA. In
1993, coca cola bought the whole Parle Brother operation, in a hope to beat the
main competitor (Pepsi). They presumed that with the tried and tested products of
Parle they will be able to regain their throne in the Indian soft drink market. Pepsi
having a 6 year head start helped revive the demand for global cola but it was not
easy for the soft drink giant (coca cola) to return to India. Pepsi put more focus on
the youth of the country in their advertisements but coca cola tried influencing
Indians with the ‘American’ way of life, which turned out to be a mistake.
Coca-Cola invested heavily in India for the first five years, which got them credit
of being one of the biggest investor in the country; however, their sales figures
were not so impressive. Hence, they had to re-think their market strategies. Coca-
Cola learned from Hindustan Lever that reducing their will result in more
turnover, hence leading to profit. They launched an extensive market research in
India. They ascertained that in India 3 As must be applied; Affordability,
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Availability and Acceptability. Coca-Cola learnt that they were competing with
local drinks such as “NimbuPani”, “Narial Pani”, “Lassi” etc. and reached to a
conclusion that competitive pricing was unavoidable. Since then they introduced
a 200 mlglass bottle for Rs.5.
Further, they had different advertising campaigns for different regions of the
country. In the southern part, their strategy was to make Bollywood or Tamil stars
to endorse their products. In various regions they tried portraying coca cola
products with different regional food products. One of the most famous ad
campaigns in India was ‘Thanda Matlab Coca-Cola’; they featured the same
quote with different regional entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in
market share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks
Segment, 33% in Packaged water Segment, compared to its arch rival, Pepsi.
Diversifying their product range and having a competitive pricing policy, they
have regained their throne.With virtually all the goods and services required to
produce and market Coca-Cola being made in India, the business system of the
Company directly employs approximately 6,000 people, and indirectly creates
employment for more than 125,000 people in related industries through its vast
procurement, supply, and distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the

Company, with another 25 being owned by franchisees. That apart, a network of
21 contract packers manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can
navigate the narrow alleyways of Indian cities – constantly keep our brands
available in every nook and corner of the Country’s remotest areas
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PRODUCTS OF COCA-COLA INDIA
COCA-COLA
In India Coca-Cola was leading soft drink till 1977 when Government policies
necessitated its departure. Coca-Cola made its return to the country in 1993 and
made significant investments to ensure that the beverage is available to more and
more people, even in remote and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with
passions of India – Cricket, movies, music & food. Coca-Cola’s advertising
campaigns “Jo Chaho Ho Jaye”&“Life Ho TohAise” were very popular & had
entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign
“Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s
favourite soft drink brand.
GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS
500ml, 1000ml 2.25L, 500ml, SIZES
100ml
Table - 1.0
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LIMCA
Limca was introduced in 1971 in India. Limca has remained unchallenged as the
No.1 sparkling drink in the cloudy lemon segment. The success formula is the
sharp fizz and lemoni bite combined with the single minded proposition of the
brand as the provider of “Freshness”.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from
“Nimbu” + “Jaise” hence Lime Sa, Limca has lived up to its promises of
refreshment and has been the original thirst choice of millions of customers for
over 3 decades.

500ml, 1000ml 2.25L, 500ml, SIZES
100ml
Table - 1.1
THUMS UP
Thums up is a leading sparkling soft drink and most trusted brand in India.
Originally introduced in 1977, Thums up was acquires by The Coca-Cola
Company in 1993. Thums up is known for its strong, fizzy taste and it confident,
mature and uniquely masculine attitude. This brand clearly seeks to separate the
men from the boys.
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500ml, 1000ml 2.25L, 500ml, SIZES
100ml
Table - 1.2
SPRITE
Sprite a global leader in the lemon lime category is the second largest sparkling
beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective
has managed to be a true teen icon.
RGB PET CAN FOUNTAIN

200ml, 300ml 500ml, 600ml, 330 ml VARIOUS
1250ml, 1500ml, SIZES
2000ml, 2250ml
Table - 1.3
FANTA
Fanta entered the Indian market in the year 1993. Over the years Fanta has
occupied a strong market place and is identifies as “The Fun Catalyst”. Perceived
as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and
tingling bubbles that not just uplifts feelings but also helps free spirit thus
encouraging one to indulge in the moment. This positive imagery is associated
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with happy, cheerful and special times with friends.

200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS
2.25L, 500ml, SIZES
100ml
Table – 1.4
MINUTE MAID PULPY ORANGE
The history of the Minute Maid brand goes as far back as 1945 when the Florida
Food Corporation developed orange juice powder. The company developed a
process that eliminated 80% of the water in the orange juice, forming a frozen
concentrate that when reconstitute created orange juice. They branded it Minute
Maid a name connoting the convenience and the ease of preparation. Minute
Maid thus moved from a powdered concentrate to the first ever orange juice from
concentrate.
The launch of Minute Maid in India (started with the south of the country) is
aimed to further extend the leadership of Coca-Cola in India in the juice drink
category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.
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MAAZA
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the
very spirit of mangoes. Universally loved for its taste, colour, thickness and
wholesome properties, Maaza is the mango lover’s first choice.
RGB PET POCKET MAAZA

200ml, 250ml 250ml, 600ml, 1.2L 200ml
Table – 1.5
KINLEY
The importance of water can never be understated, Particularly in a nation such as

India where water governs the lives of the millions, be it as a part of everyday
ritual or as the monsoon which gives life to the sub continent. Kinley water
comes with the assurance of safety from the Coca-Cola Company.
Available in PET 500ml and 1000ml.
GEORGIA GOLD COFFEE
Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea
and coffee beverages is the perfect solution for office and restaurant needs. Today
Georgia coffee is available at Quick-Service Restaurants, Airports, Cinemas and
in Corporates across all major metros in India.
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HOT Espresso, Americano, Cappuccino, Caffe Latte,

BEVERAGES Mochaccino, Hot Chocolate, Cardamon Tea.
COLD Ice Teas, Cold Coffee.
BEVERAGES
Table – 1.6
MARKETING MIX OF COCA-COLA INDIA
PRODUCT
Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola,
Fanta, Sprite, Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water
was another area where Coca-Cola identified major opportunities. In 2002,
Packaged drinking water in India was a Rs 1,000 cr industry and growing by 40%
every year. PDW was a low margin – high volume business, but it was an
attractive proposition for bottlers as it increased plant utilization rates. In this
market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s
Aquafina. The product not only faced intense competition but also was difficult to
differentiate. Coke positioned Kinley as natural water with the tag line
“BhoondBhoond Mein Vishwas” (Trust in each drop of water).
In early 1999, the parent company acquired Cadbury Schweppes. As a result 12

more bottlers were brought into CCI’s fold. This acquisition added Crush, Canada
Dry and Sport Cola to CCI’s product line. This meant CCI had three orange, clear
lime and cola drinks each in its portfolio.
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PRICE
Coke learnt with experience that price was a strategic weapon in an emerging
market like India. An increase in value added tax in 1996 had taken the price of
the 300ml bottle beyond the reach of many Indian customers. In 2000, CCI
conducted a yearlong experiment in coastal Andhra Pradesh by introducing a
200ml bottle at Rs 7. The volumes went up by 30% demonstrating the importance
of consumer affordability. So the 200ml pack priced at Rs 5 was rolled out
countrywide in January 2003. The advertising Campaign highlighted the
affordabilityandIndianimage.
To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in

selected places in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs
3 per cup in testing marketing exercise conducted in mid – 2002. In 2002 Kinley
with 35% market share had become the leader in the retail PDW segment and was
contributing 20% of CCI’s revenues.
PLACE
Coke pushed down responsibilities from corporate headquarters to the local

business units. The aim was to effectively align CCI's corporate resources,
support systems and culture to leverage the local capabilities. CCI's operations
had been divided into North, Central and Southern regions. Each region had a
president at the top, with divisions comprising marketing, finance, human
resources and bottling operations. The heads of the divisions reported to the CEO.
Bottling operations were divided into four companies directed by the bottling
head from headquarters. Under the new plan, CCI shifted to a six region profit
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center set up where product customization and packaging, marketing and brand
building were taken up locally. A Regional General Manager (RGM) headed each
region with the regional functional heads reporting to him. All the RGMs
reported to VP (Operations, who in turn reported to CEO. The four bottling
operations, with 37 bottling plants, were merged into Hindustan Coca-Cola
Beverages (HCCB). Each of the six regions had on an average six bottling plants.
Each plant was headed by an Area General Manager (AGM) and held profit
center responsibility for a business territory. He reported to the RGM as well as
the head of bottling at the head quarters.
PROMOTION
In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The
marketing campaign positioned Coca-Cola as an international brand and did not
emphasize local association. Coke, as a deliberate strategy, decided not to spend
heavily on promoting Thums Up. Indeed the marketing spend on Thums Up
between 1993 and 1996 was almost negligible. The overall marketing effort was
also not focused as CCI changed the head of marketing three times during the
period. Thumps Up remained neglected. Inadequate marketing support for other
Parle brands also led to their declining market shares.
The bottlers taken over by Coke also had problems adjusting to a new work
culture. They argued that CCI's lack of interest in promoting Thumps Up was
resulting in falling sales and asked CCI to take corrective action.
Coke is primarily targeted at young individuals over the age of twenty-five. This
can be seen by Coca-Colas advertising campaigns, which are aimed towards the
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young, by featuring well known personalities popular to this age group. During
90'ies Coke's promotion efforts did not seem to be effective. They were focused
on mega events like the 1996 Cricket World Cup held in India. CCI's World Cup
Cricket campaign was overshadowed by Pepsi's "Nothing official about it"
campaign. Major analysts were surprised that Thumps Up was totally out of the
picture during such a mega event. In 1998 localization of marketing efforts, CCI
signed up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to
promote Coke. Coke also began efforts to rejuvenate the Parle brands, Limca and
Thumps Up. In 1998, India was declared the fastest growing market within the
Coca-Cola system. But things were far from normal. Attempts at building growth
through discounts and PET take home segment were not very successful because
of lack of coordination between the launches and marketing back-up.
To maintain good relationships with bottlers and avoid defections to the other
camp, dealers had been pampered by offering expensive overseas trips. In 2000,
Coke wrote off investments in India, amounting to $400 Mn. The revised value of
CCI's assets after the charge was $300 mn.
CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By
2002, it had become India's No.2 cola drink after Pepsi. Maaza, the mango drink,
was repositioned as a juice brand and saw a growth of almost 30% in 2001. Since
India was a large country of different tastes and cultures, CCI customized its
marketing strategy for different regions. It promoted the Coke brand in Delhi,
Thumps Up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu. Coke had
plans to launch Rimzim, a spicy soda drink in North Maharashtra.
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PESTEL ANALYSIS OF COCA-COLA INDIA
PESTLE stands for Political, Economic, Social, Technological, Legal and

Environmental. It is a tool that helps the organisations for making strategies and
to know the EXTERNAL environment in which the organisation is working and
is going to work in the future.
POLITICAL FACTORS
HISTORICAL
Coca Cola India was the leading soft drink brand in India till 1977 when it left
rather than revealing its formula to the government. They re-entered the country
in 1993. However, the primary barrier for Coca-Cola’s entry into the Indian
market was its political environment. Despite the liberalization of the Indian
economy in 1991 and introduction of the New Industrial Policy to eliminate
barriers such as bureaucracy and regulation, there was still a lot of protectionism.
India’s past promotion of “Indigenous availability” or “Swadeshi movement”
depicted its affinity for local products. Due to India’s suspicion of foreign
business entering Indian markets, Coca Cola received alien status its re-entry.
This and some of the policies imposed on foreign enterprises proved as a
hindrance to the growth of the company in the country. To make things worse, the
policies were neither clear nor unchanging.
For example, foreign businesses were not allowed to market their products under
the same name if selling within the Indian market. Thus, Coca Cola had to be
changed to Coca Cola India (and Pepsi had to be renamed to Lehar Pepsi).
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However, the most controversial, and by far, the most damaging was when Coca-
Cola was forced to sign an agreement to sell 49% of its equity in order to buy out
Indian bottlers. Due to the lack of consistency in the legal aspects, more
importance was being given to lobbying the politicians.
RECENT SCENARIO
During recent times, Coca Cola India has faced its fair share of problems. On
August 5th 2003, The Centre for Science and Environment (CSE), an activist
group in India focused on environmental sustainability issues (specifically the
effects of industrialization and economic growth) issued a press release stating:
"12 major cold drink brands sold in and around Delhi contain a deadly cocktail of
pesticide residues". According to tests conducted by the Pollution Monitoring
Laboratory (PML) of the CSE from April to August, three samples of twelve
PepsiCo and Coca-Cola brands from across the city were found to contain
pesticide residues surpassing global standards by 30-36 times.
This had an adverse impact on the sales of Coca Cola, with a drop of almost 30-
40%1 in only two weeks on the heels of a 75% five-year growth trajectory. Many
leading clubs, retailers, restaurants, and college campuses across the country had
stopped selling Coca-Cola. This threatened the newly achieved leadership
attained over Pepsi due to a successful marketing campaign.
But this was not the end of Coca Cola’s troubles. There was widespread
discontent around many of their plants. For example, in Plachimada, Kerala, the
communities in and around the Coca Cola plant blamed the factory for their water
problems. Due to this, the local Panchayat decided not to renew the license issued
to Coca Cola to “protect public interest". The company has also been accused of
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illegally occupying a portion of the village property resources in Mehdiganj, near

Varanasi.However, there are certain positives as well, with a 22 percent increase
in its unit case volume last quarter.
ECONOMIC ANALYSIS
The Indian economy sustained the global economic slowdown in the previous
year and has shown a tremendous economic growth. It showed 8.6% of growth in
the last quarter of 2009-10 as compared to 5.8% same time in the previous year. It
has emerged as an attractive economy to invest in as many opportunities has been
recognized.
ECONOMIC GROWTH
India is ranked second in economic growth, just behind China. Analysts have said
that India will be the third biggest economy of the world in the coming year
behind China and USA. With economic growth many opportunities have been
seen, which have attracted many foreign investor to the company.
Coca cola India returned to the country in 1993, despite few problems in the start
they have emerged as the king of soft drink industry in India. The strong
economic growth of India has resulted in coca cola to invest heavily in sales and
distributive channels. It has introduced two new products, Nimbu Fresh and an
energy drink ‘Burn’.
Coca cola registered 22% growth in their unit case volume in the second quarter
(April-June). It is the 16th consecutive quarter of such growth out of which 13 are
double digit. Coca cola India’s growth is in contrast to its overall performance,
the beverage king reported a growth of just 5% (worldwide) in the same quarter.
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INFLATIONARY EFFECTS
Inflation is one of the main problems that Indian economy has been facing for a
year now. Rising prices in the food and other products doesn’t only effect the
consumers it also has an adverse effect on a company. The inflation rate for the
year 2009 was recorded to be 11.49%. As prices have gone up in India for various
products, especially oil, there has been uncertainty in decision making of almost
every company. Coca cola India has also been affected by the same; it has been
forced to think about their input costs, as they have been rising due to inflation.
Their expenditure has been rising, with more costs in salaries, distribution
channels and other operating costs. Beverage industry being price competitive
market, they have not revised their product prices.
 Exchange rate
The exchange rate of rupee to US Dollar has been stable but in the previous
months the rate has had a tumultuous period. Exchange rate determines at what
price will the company export its products and import whatever is required by it.
The previous year, the rate of rupee to USD touched 44, on an average it has been
around 47, so the exports earned less and the imports cost more. Therefore, coca
cola India had to bear some low profitable times. However, in the present
scenario rates have reached a stable level and exports are on an increasing trend.
 Social Analysis
Coca- Cola returned to India in 1993 after a 16 year hiatus, amidst competition
from Leher Pepsi which had the advantage of entering the country 7 years earlier.
Initially, it struggled to find acceptance as there were already other brands such as
Parle’sThums Up which existed in the market. Coca-Cola had earlier focussed
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more on the American way of life in their advertising campaigns, which the
Indian consumers could not identify with. Also, they did not focus on competition
from other alternatives such as lemonade, Lassi etc.
These products had been around for centuries, and were also cheaper alternatives
to Coca-Cola. However, things were brought under control when Thums Up was
bought over by Coca Cola, and more attention was paid by the company on their
marketing mix.
With the lowering of their prices by almost 15-20%, introduction of newer
products which appealed to the Indian tastes, more investment in market research
and focussing on the target group of 18-24 year olds, they were able to increase
their market share and build brand loyalty.
Coca Cola today, has made significant investments to build its business in India.
It has also generated employment for almost 1,25,000 people in related industry
through its procurement, supply and distribution cycles.
The soft drink industry today is growing steadily due to the booming economy,
strengthened middle class and low per capita consumption. With the increase in
health consciousness among the urban consumers, the company has introduced
newer products such as Diet Coke, which contain lesser calories than ordinary
Coca Cola. This is also responsible for the company shifting focus from
carbonated drinks to Fruit Drinks / Juices and bottled water.
The rural market had also been identified by Coca-Cola India as an attractive
target, with almost 70% of the country’s population. The company has recorded
significant growth in recent years
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Coca Cola India has also taken many initiatives as a responsible corporate citizen,
by tying up with many NGOs such as BAIF (or BharatiyaAgro Industries
Foundation), SOS Children’s Villages and Save the Children. It has also taken
initiatives to promote education in rural areas.
 Technological Analysis
Coca-Cola has started operations of its R&D facility in India, with the view of
localizing its product portfolio. The major focus would be on non carbonated
drinks and flavours. The company’s R&D team has already rolled out drinks such
as Maazaaam panna and also a Maaza mango milk drink, and is exploring options
to enter new categories in India such as juices in localised flavours, energy drinks,
sports drinks and flavoured water. These initiatives are being taken by the
company to further expand their product portfolio.
With the increasing importance of 360 degree media tools and overall ad spend
on social media sets likely to grow by almost 44%, Coca-Cola has increased ad
spend on the internet. Case in point is the recent 2009 Sprite campaign, which
was first launched on the internet.
 Environmental Analysis
Coca Cola has earned a title of environment friendly company and Coca Cola
India too has followed in the footsteps. Coca Cola India’s Corporate Social
Responsibility (CSR), is an initiative that prioritizes many social and
environmental issues; one of them being ‘water conservation’. They support
many community based rainwater harvesting projects and help lending
conservation education.
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The company has made sure that the following ideas are considered during their
operations:
1. Environmental due diligence before acquiring land
2. Environmental impact assessment before commencing project
3. Ground water and environment survey before selecting the site
4. Ban on purchasing CFC emitting refrigerating equipment
5. Waste water treatment facilities
6. Compliance with all regulatory environmental requirements
7. Energy conservation programs
By following these guidelines Coca-Cola India has helped the environment with
consistent profits and success. They seek to provide leadership in three different
areas, these are as follows:
1. Water efficiency and water quality
2. Energy efficiency
3. Eliminating or minimizing solid waste.
Though being an environmental friendly company, Coca Cola India had to face
its share of controversies. On 4th February, 2003, Centre of Science and
Environment in India, released a report based on experiment done by Pollution
Monitoring Laboratory. In the experiment, they tested 17 packaged drinking
water brands and found that, Coca Cola’s Kinley has 15 times more pesticide
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residual levels than the stipulated norms, Bisleri had 59 times and Aquaplus had
109 times.
The main law governing the food safety is the 1954 Prevention of food alteration
act, which stated that pesticides should not be present in any food item but did not
have law against pesticides being present in soft drinks. However, the Food
Processing Order 1955 stated that the main ingredient used in soft drinks must be
‘potable water’ but the Bureau of Indian Standards had no prescribed standards
for pesticides in water.
But later it was found that BIS had stated that pesticides should not be present or
it should not exceed 0.001 part per million. Further, the health ministry of India
admitted that ‘there were lapses in PFA regarding carbonated drinks’.
Fig 2.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA
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 Legal Analysis
As the Indian consumer is getting more educated, the government is also paying
special attention to consumer laws. In the past, there were not so many laws
protecting the benefits to the consumer but now every business has to go by the
law and fix their operations, strategies so as to satisfy their consumers, and
employees. Keeping in mind the consumer laws, employment laws, antitrust law,
discrimination laws etc. a business should plan out everything.
CONSUMER LAWS
In the present scenario, consumer is the king, if a product is defective, not

meeting the stated standards a consumer can complain against the manufacturer.
Complaining and getting the verdict the court has made very fast and efficient as
government of India has installed new consumers courts. Their main job is to see
that the consumer benefits are being met or not. When producing their beverages,
Coca Cola India has to make sure that they have written price, manufacturing
date, expiry date, batch no, nutritional facts are written on the packed product.
EMPLOYMENT LAWS
Ministry of Labour makes the laws for proper employment in the country. They
have stipulated norms on employing people from the country and getting
expatriates in the company as well. India has strict laws against employing child
labour. Being a male dominated society, the ministry has made sure that female
employees are treated with respect and given equal importance at the work place.
Every field of work has got its own wage, these are to meet the norms and laws
set by the labour ministry. When employing anyone, coca cola India cannot
discriminate on social, regional or any racists’ basis. If it is found that the
company has been violating the law, it has to face strict action and fines.
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HEALTH AND SAFETY LAWS
As coca cola produces a product that is consumed by the consumer as a food

item, there are laws that the company must abide by when producing it. Ministry
of Food Processing Industries makes and oversees the laws and norms for the
food processing industries.
The Indian Parliament has recently passed the Food Safety and Standards Act,
2006 that overrides all other food related laws.
It will specifically repeal eight laws:
 The Prevention of Food Adulteration Act, 1954.

 The Fruit Products Order, 1955.
 The Meat Food Products Order, 1973.
 The Vegetable Oil Products (Control) Order, 1947.
 The Edible Oils Packaging (Regulation) Order, 1998.
 The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control)
Order, 1967.
 The Milk and Milk Products Order, 1992.
 Essential Commodities Act, 1955 relating to food.
From now on, the act establishes a regulatory body, the Food Safety and
Standards Authority of India. Anything that coca cola makes, have to make
accordingly to the laws. They have to check the weight, volume and ingredients
of the product. The export or the import of the products by the company has to
meet the quality standards stipulated by the law.
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ANTI-TRUST LAW
The Competition Commission of India was made under the Indian Competition
Act 2002, Monopolies Restrictive and Trade Practices Act 1969 was replaced by
it. This committee looks after all the issues regarding unethical means of doing
business, competition issues and any dispute between two different business
entities. CLG competition and anti trust practices are as follows:
 Representing clients before the MRTP Commission in ‘monopolistic and

restrictive trade practices’ and ‘unfair trade practices’ matters.
 Legal Advice and sophisticated insight into the international best practices
on competition law.
 Consultancy services on specific issues - supply and distribution, pricing
and marketing, ‘promotional materials’, mergers, acquisitions,
amalgamation, licensing, joint operation and research, joint buying,
‘dominant-firm’ status etc.
 Competition Audit and Due Diligence for developing appropriate
guidelines for employees, distributors, agents, franchisees etc.
 Legal Due Diligence on anti-competition, unfair and restrictive market
practices.
 Drafting claims, counter-claims, replies, rejoinders, representations etc. on
Competition Law and related legal issues.
 Strategic policing on anti-competition market practices and trends.
 Policy due diligence for mergers, acquisitions, joint ventures with
appropriate anti-trust safeguard measures and policy.
All these laws help Coca Cola India to maintain its own brand and values. Any
other business trying to copy the brand of coca cola will face the strict action
Page 76
Coca-Cola
Cola brands with
Cola India”
against itself. These laws help every business to compete in a fair environment.
As it iiss known that the coca cola and P
Pepsi
epsi are the fiercest rivals in the beverage
industry, the CCI makes sure that either of them does not indulge in unfair means
to make profits and hurt each other’s business.
SWOT ANALYSIS
ANALYSIS OF COCA
COCA-COLA
COLA INDIA
STRENGTHES WEAKNESSES
Distribution Network. Health Care Issues.
Strong Brand Image. Small Scale Sector
Reservations.
Low Cost of Operation.
SWOT
OPPORTUNITIES ANALYSIS
THREATS
Large Domestic Markets.
Imports.
Export Potential.
Tax & Regulatory Sector.
High Income among People.
Slowdown in Rural Demand.
Fig 2.3 SWOT ANALYSIS OF COCA

COCA-COLA
COLA INDIA
STRENGTHES
TRENGTHES
DISTRIBUTION NETWORK
The Company has a strong and reliable distribution network. The network is
formed on the basis of the time of consumption and the amount of sale yielded
yiel by
a particular customer in one transaction. It has a distribution network consisting
of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors.
The distribution fleet includes different modes of distribution, from 10 tonne to
Page 77
open bay three wheelers that can navigate the narrow alleyways of Indian cities –
constantly keep Coca-Cola brands available in every nook and corner of the
Country’s remotest areas.
STRONG BRAND IMAGE
Coke has its history of about more than a century and this prolonged sustenance
has definitely added to the brand image in the minds of the consumers and to its
wallet. The products produced and marketed by Coca-Cola India have a strong
brand image.
Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up
to the brand name of Coca-Cola Company as a whole. Coca Cola India for the
first time has come out with corporate campaign in India targeting its
stakeholders. The multimedia campaign “Little Drops of Joy " is aimed at raising
the corporate brand image of the company which took a heavy beating with a
number of controversies it faced in different domains.
The new campaign is a part of a complete restructuring exercise in the Indian arm
of this global change. Coca Cola recently announced its new corporate strategy
called the “5 Pillar" strategy. The company has identified the 5 pillars as
 People.
 Planet.
 Portfolio.
 Partners.
 Performance.
Page 78
LOW COST OF OPERATIONS
In light of the company’s Affordability Strategy, Coca-Cola went about bringing

a cost-focus culture in the company. This included procurement Efficiencies –
through focus on key input materials, trade discipline and control and proactive
tax management through tax incentives, excise duty reduction and creating
marketing companies. These measures have reduced the costs of operations and
increased profit margins.
WEAKNESSES
HEALTH CARE ISSUES
In India, there exists a major controversy concerning pesticidesand other harmful

chemicals in bottled products including Coca-Cola.In 2003, the Centre for
Science and Environment (CSE), a non-governmental organization in New Delhi,
said aerated watersproduced by soft drinks manufacturers in India,
includingmultinational giants PepsiCo and Coca-Cola, contained toxinsincluding
lindane, DDT, malathion and chlorpyrifos - pesticides thatcan contribute to
cancer and a breakdown of the immune system.
SMALL SCALE SECTOR RESERVATIONS
The Company’s operations are carried out on a small scale and due to
Government restrictions and ‘red-tapism’, the Company finds it very difficult to
invest in technological advancements and achieve economies of scale.
Page 79
OPPORTUNITIES
LARGE DOMESTIC MARKETS
The domestic market for the products of the Company is very high as compared
to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share
of the soft drinks market; this includes a 42 per cent share of the cola market.
Other products account for 16 per cent market share, chiefly led by Limca. The
company appointed 50,000 new outlets in the first two months of this year, as part
of its plans to cover one lakh outlets for the coming summer season and this also
covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the
beverage market.
EXPORT POTENTIAL
The Company can come up with new products which are not manufactured
abroad, like Maaza etc and export them to foreign nations. It can come up with
strategies to eliminate apprehension from the minds of the people towards the
Coke products produced in India so that there will be a considerable amount of
exports and it is yet another opportunity to broaden future prospects and cater to
the global markets rather than just domestic market.
HIGHER INCOME AMONG PEOPLE
Development of India as a whole has lead to an increase in the per capita income
thereby causing an increase in disposable income. Unlike olden times, people
Page 80
now have the power of buying goods of their choice without having to worry
much about the flow of their income. Coca-Cola Company can take advantage of
such a situation and enhance their sales.
THREATS
IMPORTS
As India is developing at a fast pace, the per capita income has increased over the
years and a majority of the people are educated, the export levels have gone high.
People understand trade to a large extent and the demand for foreign goods has
increased over the years.
If consumers shift onto imported beverages rather than have beverages

manufactured within the country, it could pose a threat to the Indian beverage
industry as a whole in turn affecting the sales of the Company.
TAX & REGULATORY SECTOR
The tax system in India is accompanied by a variety of regulations at each stage

on the consequence from production to consumption. When a license is issued,
the production capacity is mentioned on the license and every time the production
capacity needs to be increased, the license poses a problem. Renewing or
updating a license every now and then is difficult. Therefore, this can limit the
growth of the Company and pose problems.
Page 81
SLOWDOWN IN RURAL DEMAND
The rural market may be alluring but it is not without its problems: Low per
capita disposable incomes that is half the urban disposable income; large number
of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal
consumption linked to harvests and festivals and special occasions; poor roads;
power problems; and inaccessibility to conventional advertising media. All these
problems might lead to a slowdown in the demand for the company’s products.
Page 82
Coca-Cola
Cola brands with
Cola India”
RESEARCH METHODOLOGY
Page 83
OBJECTIVES OF THE STUDY
 The main objective of the project is to analyze and study in efficient way
the current position of Coca- Cola Company.
 To perform PESTLE and SWOT analysis of Coca-cola globally as well

as locally. This would help us identify areas of potential growth.
 The study was aimed to perform Market Analysis of Coca-Cola Company

& find out different factors effecting the growth of Coca-Cola.
 Another objective of the study was to perform Competitive analysis

between Coca-Cola and its competitors.
 To understand the reasons behind the purchase of Coca-Cola products.
SCOPE OF THE STUDY
This study basically tries to discover the current position of Coca-cola in the
market. It also tries to discover the preferences of the customers when posed
with a choice between Coca-Cola and Pepsi. It is primarily directed to the
general public but was done only in New Delhi, Noida and Greater Noida
RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring

the needed information. It is overall operational pattern or framework of the
project that stipulates what information is to be collected from which source by
what procedure.
Page 84
There are three types of objectives in a marketing research project:-
 Exploratory Research.
 Descriptive Research.
 Casual Research.
Exploratory Research
The objective of exploratory research is to gather preliminary information that

will help define problems and suggest hypothesis.
Descriptive Research
The objective of descriptive research is to describe things, such as the market

potential for a product or the demographics and attitudes of consumers who buy
the product.
Casual Research
The objective of casual research is to test hypothesis about casual and effect
relationships.
Based on the above definitions it can be established that this study is a

Descriptive Research as the attitudes of the customers who buy the products
have been stated. Through this study we are trying to analyze the various factors
that may be responsible for the preference of Coca-Cola products.
SOURCES OF DATA
The data has been collected from both primary as well as secondary sources.
Page 85
PRIMARY DATA
The primary data has been collected simultaneously along with secondary data
for meeting the established objectives to provide the solution for the problem
identified in this study.
The methods that have been used to collect the primary data are:-
 Questionnaire.
 Personal Interview.
SECONDARY DATA
It is defined as the data collected earlier for a purpose other than one currently
being pursued.
As a researcher I have scanned lot of sources to get an access to secondary data

which have formed a reference base to compare the research findings.
Secondary data in this study has provided an insight and forms an outline for the
core objectives established.
The various sources of secondary data used for this study are:-
 News papers.
 Magazines.
 Text books.
 Marketing reports of the company.
 Internet.
Page 86
RESEARCH MEASURING TOOLS & TECHNIQUES
The primary tool for the data collection used in this study is the respondent’s
response to the questionnaire given to them. The various research measuring
tools used are:-
 Questionnaire.
 Personal interview.
 Tables.
 Percentages.
 Pie-charts.
 Bar-charts.
 Column charts.
SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it

addresses three questions: Whom to survey (sample Unit), how many to survey
(Sample Size) and how to select them (sampling Procedure). Making the census
study of the entire universe will be impossible on the account of limitations of
time and money. Hence sampling becomes inevitable. A sample is only his
portion of population. Properly done, sampling produces representative data of
the entire population.
SAMPLE SIZE
 Through questionnaire – 150 respondents.

 Through personal interview – 27 respondents.
Page 87
SAMPLING TOOL
Questionnaire was used as a main tool for the collection of data, mainly because
it gives the chance for timely feedback from respondents. Moreover respondents
feel free to disclose all necessary detail while filling up a questionnaire.
Respondents seeking any clarification can easily be sorted out through tool.
Sampling Tools Respondents Number

Questionnaire Customers 150
Personal Interview Customers 27
Total 177
Table – 1.7
FIELD WORK
The study was conducted in New Delhi, Noida and Greater Noida.
 The questionnaires were given to the respondents to fill in order to get

their feedback.
 Questions were read out to the respondents and the answers were noted.
LIMITATIONS OF THE STUDY
The main purpose of this study is get idea about the preference of the customers
towards various Coca-Cola products. But there are certain factors which affects
this study they are as follow:
 Since the sampling procedure was judgmental, the sample selected may
not be true representative of the population.
Page 88
 Economic and market conditions are very unpredictable (Present and

future).
 The project duration is limited to 4 weeks so it limits the area of study.
 The study was confined to New Delhi, Noida and Greater Noida due to
which the result cannot be applied universally.
Page 89
Coca-Cola
Cola brands with
Cola India”
DATA ANALYSIS
Page 90
Coca-Cola
Cola brands with
Cola India”
Respondents based on age group

180
160
Number of respondents
140
120
100
80
60
40
20
0
Below 20 20-30 30-40 40-50 above 50
Number of respondents 10 159 6 1 1
Fig 2.4
Respondents based on gender
37%
Male
63%
Female
Fig 2.5
AGE GROUP & GENDER
From Fig 2.4, we can comprehend that 90% of total respondents belong to the
age group of 20-30.
20 30. This is because most of the co
consumers
nsumers that prefer or
consume Coca
Coca-C
Cola
ola products belong to this age group. About 6% belong to age
group below 20 and 3% belong to age group of 30
30-40.
40.Form
rm Fig 2.5, we come to
know that the gender ratio of the total respondents is aalmost
lmost 2:1 (male:
( female).
Page 91
Coca-Cola
Cola brands with
Cola India”
Frequency of soft drink consumption
50
40
30
20 Series1
10
0
Once a Twice a Thrice a Everyday Rarely
week week week
Fig 2.6
Weekly expenditure of coca-

coca
cola products (INR)
4% 3%
12%
50-100
100-150
81% 150-200
Above 200
Fig 2.7
SOFT DRINK CONSUMPTION & EXPENDITURE
From Fig 2.6

2.6,we
we interpret that about 48
48%% of the total respondents consume soft
drinks
rinks rarely or once a week.
week. About 35% respondents consume soft drinks twice
or thrice a week and only 18% consumes soft drinks every day.
day
Page 92
Coca-Cola
Cola brands with
Cola India”
From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-
50
100 a week on Coca-Cola
Coca Cola products,
products, which is very low as ccompared
ompared to the global
scenario. This creates a potential growth market for Coca-Co
Coca Cola
la India. About
12% spends from 100-150
100 150 a week & 7% spend above 150.
Purchasing Portal Preference
120
100 S
80 e
r
60 i
40 e
s
20 1
0
Supermarkets Retails Vendor Pubs & Multiplexes
Machines Restaurant
Vendor Pubs &

Supermarkets Retails Multiplexes
Machines Restaurant
Series1 26 103 8 20 20
Fig 2.8
PURCHASING PORTAL
PORTAL PREFERENCE
From the above data, we have ascertained that preferred portal for purchase of
Coca-Cola
Cola products is the retail shops i.e. 58%.
58%. This is probably because not all
communities in India have supermarkets and other purchasing channels present
nearby, whereas, we can find retail shops in every corner.19%
corner. 19% prefer to
purchase fromSupermarkets and Vendor machines. 23% prefer to purchase from
Pubs, R
Restaurants
estaurants and Multiplexes.
Page 93
Coca-Cola
Cola brands with
Cola India”
Occasions/Reasons for consumption
Just like that
Parties
Cinemas
Picnics
Festivals
0 20 40 60 80 100 120
Festivals Picnics Cinemas Parties Just like that

Series1 3 4 26 40 104
Fig 2.9
REASON FOR CONSUMPTION
From this graph, we infer that there is no specific occasion why people purchase
Coca-Cola
Cola products. Although some of the advertising campaigns target special
occasion or festivals. From Fig 2.
2.99 it is concluded that 59% respondents
purchase Coca
Coca-Cola
Cola without any specific reason. About 23% purchase for the
purpose of parties, 15% purchase while watching movies in the cinemas and
only about 4% purchase during festivals and for picnic purposes.
Page 94
Coca-Cola
Cola brands with
Cola India”
Soft drink preference
80
70
Number of responses
60 S
50 e
r
40
i
30 e
20 s
10 1
0
Coca-Cola
Coca Pepsi Other products Other products Other drinks
of Coca-Cola
Coca of Pepsi
Other products of Other products of

Coca-Cola
Coca Pepsi Other drinks
Coca--Cola Pepsi
Series1 72 34 52 7 12
Fig 2.10
SOFT DRINK PREFERENCE
From the above graph we interpret thatabout 70% of the respondents, prefer
consuming Coca-Cola
Coca Cola product over
overPepsi and other drinks. This clearly states
why Coca
Coca-Cola
Cola is market leader with almost 60% of market share. 23% prefer
pref
Pepsi Products and only 75 prefer other drinks.
Page 95
Coca-Cola
Cola brands with
Cola India”
Opnion About Coca-Cola

Coca Cola Products
Bad
Below Satisfactory
Satisfactory
Good
Excellent
0 20 40 60 80 100 120
NO. OF RESPONDENTS
Fig 2.11
Products expected by consumers from

Coca Cola
Coca-Cola
Fizzy drinks Fruit drinks Energy drinks Alcoholic drinks
20% 14%
26% 40%
Fig 2.12
OPINION ABOUT COCA-COLA

COCA COLA PRODUCTS &PRODUCTS
PRODUCTS
EXPECTED BY CONSUMERS
From Fig 2.11

2.11,, we infer that though the respondents are more than satisfied by
the Coca
Coca-Cola
Cola product range they woul
wouldd still like the company to introduce new
drinks. From Fig 2.12, we conclude that aabout
bout 40% would like to see a new fruit
drink being added to the product basket, 26% want energy drinks, 20%
alcoholic drinks and only 14% want another fizzy drink. Majority of the people
Page 96
Coca-Cola
Cola brands with
Cola India”
wanting to see a fruit drink is mainly because people are more health conscious
now and want to manage their calorie intake.
Quantity preference
90 S
Number of responses
80 e
70 r
60 i
50
40 e
30 s
20 1
10
0
200
200-250 ml 300 ml Can 500 ml Pet 1 litre 2 litre
Glass bottle bottle
200-250
200 ml 500 ml Pet
300 ml Can 1 litre 2 litre
Glass bottle bottle
Series1 47 33 83 5 9
Fig 2.13
QUANTITY PREFERENCE
From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET
bottle of Coca-Cola
Cola Products. About 27% prefer to purchase glass bottles,
bottles 19%
prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola.
Coca
Page 97
Coca-Cola
Cola brands with
Cola India”
Branding
Pepsi products
Coca-Cola
Cola products
0 50 100 150
Coca Cola products

Coca-Cola Pepsi products
Series1 109 68
NO. OF RESPONDENTS
Fig 2.14
Pricing
150
100
Series1
50
0
Coca-Cola
Cola products Pepsi products
Fig 2.15
BRANDING& PRICING
BRANDING&
From F
Fig 2.14, it is concluded that respondents find Coca
Coca-Cola
Cola products
products better
than that of Pepsi products. About 62% respondents said that they find Coca-
Coca
cola products better than Pepsi and only 38% supported Pepsi products.
Page 98
Coca-Cola
Cola brands with
Cola India”
From Fig 2.15, we infer that about 62% of therespondent considers the pricing
of Coca
Coca-Cola
Cola much more
ore reliable than that of Pepsi. About 38% respondents
think that Pepsi have better pricing than that of Coca
Coca-Cola.
Cola.
Quality
150
100
50 Series1
0
Coca-Cola
Cola products Pepsi products
Fig 2.16
TASTE
Pepsi products
Coca Cola products

Coca-Cola
0 50 100 150
Coca Cola products

Series1 130 47
NO. OF RESPONDENTS
Fig 2.17
Page 99
Coca-Cola
Cola brands with
Cola India”
QUALITY
QUALITY&& TASTE
From Fig 2.16 & 2.17, it’s clear that Coca

Coca-Cola
Cola products have better taste and
quality than that of Pepsi.
Pepsi. About 73% respondents consider that Coca-Cola
Coca
products have very good quality and taste. 27% respondents consider Pepsi
products have better taste and quality.
Availability
Pepsi products
Coca-Cola
Cola products
85 86 87 88 89 90
Coca Cola products

Series1 90 87
Fig 2.18
Satisfaction
Pepsi products
Series1
Coca-Cola
Cola products
0 50 100 150
Fig 2.19
Page 100
AVAILABILITY & SATISFACTION
From Fig 2.18, it’s clear that there is slight difference between the availability
of products of Coca-Cola and Pepsi. About 51% respondents think that Coca-
Cola products are much easily available in the market.49% consider that
availability of Pepsi products is more in the market.
About 70% of respondents are satisfied with the Coca-Cola products while as
30% respondents are satisfied with the Pepsi products as shown in Fig 2.19.
Page 101
Coca-Cola
Cola brands with
Cola India”
SUGGESTIONS
&
CONCLUSION
Page 102
SUGGESTIONS
The suggestions made in this section are based on the market study conducted
as part of “Coca-Cola India”. The suggestions are arranged in order of priority,
highest first.
 Perform a detail demand survey at regular interval to know about the

unique needs and requirements of the customer.
 The company should make hindrance free arrangement for its

customers/retailers to make any feedback or suggestions as and when
they feel.
 The company should focus to bring some more flavorslike health drinks
and other low-calorie offerings.Coca-Cola India can also introduce some
fruit based drinks, as it has already entered the energy drink arena with
“Burn”.
 Coca-Cola’s distribution channel is mostly through retail. Whereas the

competitors also concentrates more on the multiplexes, pubs and
restaurants. Coca-Cola should try to increase their distribution in these
areas.
 The company must keep a watch on its primary competitors in market in

order to be able to compete with them.
 The company should use new attractive system of word of mouth

advertisement to keep alive the general awareness in the whole market
as a whole.
Page 103
 The company should be always in a position to receive continuous

feedback and suggestions from its customers/ consumers as well as from
the market and try to solve it without any delay to establish its own good
credibility.
 A strong watch should be kept on distributors so that the goodwill of the

BRAND doesn’t get affected.
CONCLUSION
Though there were certain limitations in the study that was conducted. The
sample allowed for some conclusions to be drawn on the basis of analysis that
was done on the data collected.
The data has clearly indicated that Coca-Cola products are more popular than
the products of Pepsi mainly because of its TASTE, BRAND
NAME,INNOVATIVENESS and AVAILABILITY, thus it should focus on
good taste so that it can capture the majorpart of the market. The study also
indicated that the consumers are satisfied with the Coca-Cola products and
purchase them without any specific occasions.
In today’s scenario, customer is the king because he has got various choices
around him.If you are not capable of providing him the desired result he will
definitely switch over tothe other provider. Therefore to survive in this
cutthroat competition, you need to be thebest. Customer is no more loyal in
today’s scenario, so you need to be always on yourtoes.
Page 104
BIBLIOGRAPHY
BOOKS
 Marketing Management – Kotler Philip.

 Research Methodology – Kothari.
WEBSITES
 www.thecoca-colacompany.com
 www.news.bbc.co.uk
 www.india-server.com
 www.magindia.com
 www.coca-colaindia.com
 www.wikiinvest.com
 www.open2.net
OTHERS
 Annual report of Coca-Cola 2008.

 Annual report of Coca-Cola 2009.
THANK YOU !
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A PROJECT REPORT ON “Coca-Coca Company and study

of Customer relationship management (CRM)

ASST.PROF . PRIYA SINGH

Chhaya Tiwari Shirin Gonslvez

I am grateful DR.SHIRIN GONSALVEZ THOMAS Principal of College & Asst. Prof.

BABALU SUNIL JADHAV

SR.NO. CONTENT PAGE NO.

This report has been prepared with a specific purpose in mind.

Marketing research is about researching the whole company’s marketing

The Coca-Cola Company and its network of bottlers comprise the

The Company aims at increasing shareowner value over time. Itaccomplishes

A BRIEF INSIGHT- THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

The realization of the customer'sgrowing awareness and the need to meet

Unlike other economy sectors, FMCG share float in a steady manner

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an

Fig 2.0 BEVERAGES IN INDIA

 Alcoholic, non-alcoholic and sports beverages.

If the behavioural patterns of consumers in India are closely noticed, it could

Four strong strategic elements to increase consumption of the products of the

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

 To refresh the world...

anticipate and satisfy people's desires and needs.

LIVE OUR VALUES

FOCUS ON THE MARKET

 Focus on needs of our consumers, customers and franchise partners.

 Act with urgency.

ACT LIKE OWNERS

 Be accountable for our actions and inactions.

Inspire creativity, passion, optimism and fun.

In 1886, when Atlanta and Fulton County passed prohibition legislation,

By 1888, three versions of Coca-Cola — sold by three separate businesses —

In 1892 Candler incorporated a second company, The Coca-Cola Company (the

of the bottlers to subcontract to other companies, effectively becoming parent

On February 7, 2005, the Coca-Cola Company announced that in the second

GLOBAL MARKET SHARE OF COCA-COLA

On February 25, Coca-Cola Company announced its plan to buy Coca-Cola

Enterpriseswill take over Coke's bottling operations in Norway and Sweden,

In April 2010, Coca-Cola Company purchased a majority share of Innocent, the

In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group

TRENDS AND FORCES

The Global Economic Recession Threatens Overall Demand

New Aversion to Soda Threatens Main Business

Though KO has been somewhat slow to respond to this shift in consumer

Integrated Bottler Strategy Increases Flexibility

Bottled Water Falling Out of Favour

Dollar Affects International Performance

Commodity Cost Fluctuations Affect Margins

The Coca-Cola Company’s profitability can be affected both directly and

POTER’S FIVE FORCES

RIVALRY AMONG EXISTING FIRMS

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's

Pepsi is however trying to counter this by competing more aggressively in the

Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke,

Tens of millions consumers participated. Pepsi outperformed Coke during the

with new features each year.

Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi

BARGANING POWER OF BUYERS

BARGANING POWER SUPPLIERS:

Another raw material increasingly used by the soft-drink industry is aspartame, a

PESTEL ANALYSIS OF COCA- COLA

PESTLE stands for Political, Economic, Social, Technological, Legal and