CHAPTER-I

INTRODUCTION

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 INTRODUCTION

They get or purchase shelves in big departmental stores and display their products in that
shelves in that style which show their product more clear and more attractive for the
consumers.

EYE CATCHING POSITION

Salesman of the Coca Cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.

SALE PROMOTION

Company also do sponsorships with different college and school’s cafes and sponsors their
sports events and other extra curriculum activities for getting market share.

UTC SCHEME

UTC mean under the crown scheme, Coca Cola often do this type of scheme and they offer
very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This
scheme is very much popular among children.

DISTRIBUTION CHANNELS

Coca Cola Company makes two types of selling

1. Direct selling

2. Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. They have
almost 450 vehicles to supply their bottles. In this type of selling company have more profit
margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very difficult for
them to cover all area of Pakistan by their own so they have so many whole sellers and
agencies to assure their customers for availability of Coca Cola products.

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FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these
includes:

 Vizi cooler
 Freezers
 Display racks
 Free empty bottles and shells for bottles
ADVERTISEMENT

Coca Cola Company use different mediums

 Print media
 Pos material
 Tv commercial
 Billboards and holdings
PRINT MEDIA

They often use print media for advertisement. They have a separate department for print
media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the
stores and in different areas.

TV COMMERCIALS

As everybody know that TV is a most common entertaining medium so TV commercials is

one of the most attractive way of doing advertisement. So Coca Cola Company does regular
TV commercials on different channels.

BILLBOARDS AND HOLDINGS

Coca Cola is very much conscious about their billboards and holdings. They have so many
sites in different locations for their billboards.

This project is focused on studying the various marketing strategies of Coca-Cola and the
scenario of Indian soft drink industry in the 1990’s.

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Coca-Cola Co., the global soft drink industry leader controlled Indian soft drink industry till
1977. Then Janta Party beats the Congress Party and the Central Government was changed.
This change brought problems for Coca-Cola principle bottler, who was a big supporter of
Gandhi Family. Now Janta Party government demanded that Coca-Cola should transfer its
syrup formula to an India subsidiary (Chakravarty, 43). Because of this Coca-Cola backed
and withdrew from the country. In the mean time, India’s two target soft drink producers
have gotten rich. Who were controlling 80% of the Indian soft drink industry.

In 1993, the coco-Cola company came back to India. But the scenario of Indian soft drink
industry had been changed from 1977 to 1993. The competition in the soft drink industry had
become very tough. The major competitor at that time were Pepsi and Parle. Parle’s best
known brands includes ThumsUp, Limca, Citra and others were Gold Spot and Maaza. At
that time Parle had a market share of 53% and Pepsi had a market share of 20%.

Now Coca-Cola had to make some strategies to survive in this tough competition. For this
Coca-Cola decided to take over Parle, so that the company can take the advantage of Parle’s
network. This decision was proved very beneficial for Coke as it had ready access to over
2,00,000 retailer outlets and 60 bottlers of Parle’s network.

The marketing strategies which were made by Coca-Cola company to win the Cola war in
1990s had been very successful as Coca-Cola company had a total market share of 48.3% in
1998.

So, the Indian soft drink industry saw a dramatic change in the decade of 1990s. All the
companies were trying to win the battle by making good marketing strategies.

These days Coke and Pepsi are using the 4Ps of marketing mix (Price, Product, Place and
Promotion) in such a way so that a good quality can be provided to the consumers at a
reasonable price to attract the consumers towards their brands.

Both the companies know that there is so much potential in the Indian soft drink industry and
the can increase their sales by making good marketing strategies. So, they are spending a
huge amount of money on advertising and other sales promotional activities of their brands.

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SOFT DRINK INDUSTRY: AN OVERVIEW

It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton’s backyard in
Atlanta was brewing the first P of marketing leged. Unaware the pharmacist has given birth
to a caromel colored syrup, which is now the chief ingredient of the world’s favorite drink.
The syrup combined with carbonated the soft drink market. It is estimated that this drink is
served more than one thousand million times in a day.

Equally oblivious to the historic value of his actions was Frank Ix. Robinson, his partner and
book keeper. Pemberton & Robinson laid the first foundation of this beverage when an
average nine drinks per day to begin with, upping volumes as sales grew.

In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the
1950’s Colas were a daily consumption item, stored in house hold fridges. Soon were born
other non- Cola variants of this product like orange & Lemon.

Now, the soft drink industry has been dominated by three major player – (1) The New York
based Pepsi co. Inc.(2) The Atlanta based Coca Cola co. (3) The United Kingdom based
Cadbury Schweppes.

Throughout the globe these major players have been battling it. Out for a bigger chunk of the
ever-growing cold drink market. Now this battle has begun in India too. Inida is now the part
of cold drink war. Gone are days of Ramesh Chauhan, India’s one time Cola king and his
bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola &
Pepsi co. battle it out for, as the Jordon goes a bigger share of throat. By buying over local
competition, the two American Cola giants have cleared up the arena and are packing all their
power behind building the Indian franchisee of their globe girdling brands. The huge amount
invested in fracture has never been seen before. Both players seen an enormous potential in
his country where swigging a carbonated beverage is still considered a treat, virtually a
luxury. Consequently, by world standards India’s per capita consumption of cold drinks as
going by survey results is rock bottom, less than over Neighbors Pakistan & Bangladesh,
where it is four times as much.

Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to
add muscle to its infrastructure in bottling and distribution. This is apart from money that
company’s franchised bottles spend in upgrading their plants all this has contributed to
substantial gains in the market. In Colas, Pepsi is already market leader and in certain cities

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like Banaras , Pepsi outlets are on one side & all the other Colas put together on the other.
While Coke executive scruff at Pepsi’s claims as well as targets, industry observers are of the
view that Pepsi has definitely stolen a lot from its competitor Coke.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image
turnaround is no small achievements, considering that since it was established in 1989, taking
the hardship route prior to liberalization and weighed down by export commitments.

Now, at present as there are three major players Coke, Pepsi and Cadbury and there is stiff
competition between first two, both Pepsi and Coke have started, sponsoring local events and
staging frequent consumer promotion campaigns. As the mega event of this century has
started, and the marketers are using this event – world cup football, cricket events and many
more other events.

Like Pepsi, Coke is picking up equity in its bottles to guarantee their financial support; one
side Coke is trying to increase its popularity through.

Eat Food, enjoy Food. Drink only Coca Cola. Eat cricket, sleep cricket. Drink only Coca
Cola. Eat movies, sleep movies. Drink only Coca Cola.

But no doubt’ that UK based Cadbury is also ecognising its presence. So there is a real crush
in the soft drink market.with launch of the carbonated organize drink Crush, few year ago in
Banaras ., the first in a series of a launches , Cadbury Schweppes beverage India (CSBI) HAS
PLANNED:- The world third largest soft drink marketers all over the country.CSBI o wholly
owned subsidiary of the London based $ 6.52billion. Cadbury Schweppes is hoping that
crush is going well and well not suffer the same fate as the Rs. 175 crore Cadbury india’s
apple drink Apella. CSBI is now with orange (crush), and Schweppes soda in the market.

As orange drinks are the smallest of non-Cola categories that is Rs. 1100 crore market with
10% market share and Cola heaving 50% is followed by Lemon segment with 25%.

The success of soft drink industry depends upon 4 major factors viz.

 Availability
 Visibility
 Cooling
 Range

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AVAILABILITY

Availability means the presence of a particular brand at any outlet. If a product is now
available at any outlet and the competitor brand is available, the consumer will go for the
outlet because generally the consumption of any soft drink is an impulse decision and not
predetermined one.

VISIBILITY

Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi
Cola and this brand is not displayed in the outlet, then its availability is of no use. The soft
drink must be shown off properly and attractively so as to catch the attention of the
consumer immediately Pepsi achieves visibility by providing glow signboards, hoarding,
calendars etc. to the outlets. It also includes various stands to display Pepsi and other
flavours of the company.

COOLING

As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the
sales. The brand, which is available chilled, gets more sale than the one which is not, even
if it is more preferred one.

RANGE

This is the last but not the least factor, which affects the sale of the products of a particular
company.

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THE NEED OF STUDY

The purpose of my study is to test effectiveness of the promotional activities of coca-cola

India inc in the present globalised economy of India. To test the effectiveness of promotional

activities of coca- cola I conducted exhaustive study and analysis of market conditions of soft

drink during my training in Gurgaon. And I found that promotional activities conducted by

the company are satisfactory but they need certain improvement.

SCOPE OF THE STUDY

 In this age of servers competition, promotion is the only marketing tools which can be
manipulated easily. The reasons is that the present era is of information management.
And the company which communicates well succeeds.

 Today is the era of cut throat competition, especially in soft drink market there is
server competition. And the importance of promotion as a management tools and
increased nowadays. Sales Promotion of a firm contribute up to a great extent in its
success in today's era. So we can say that promotional activities play important role in
increasing the sales.

 The Scope of my study is to give suggestions to coca- Cola India inc for further
improvement in promotional activities after testing the effectiveness of the
promotional activities of it.

 To get comparison about the effectiveness of coca-cola's "Promotional activities" with

its rival's i.e. Pepsi's promotional activities Which will be helpful in suggest measures
to further improve the promotional activities of Coca-Cola and make it more
competitive.

 The main concern of my study is to have knowledge and an idea about the Marketing
strategies of COCA COLA INDIA INC and suggest measure for improving
promotional activities.

 The training gave me a chance to have practical experience and also the realize
theoretical knowledge which I am getting in 'M.B.A'.

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OBJECTIVE OF THE STUDY

1. To study the marketing strategies adopted by Coca-Cola

2. To study the advertising effectiveness Coca-Cola on customer
3. To analyze the awareness of consumer regarding Coca Cola.
4. To help the company for further changes in the quality, pricing, and policies.

RESEARCH METHODOLOGY

Research design

The Research available is descriptive so as to describe the complete qualities of juices

available in market.

Sources of Data collection

To do a research always we use two sources of data collection. Primary and secondary

Primary Source:

It is the source which collects the primary data through Questionnaire and record the raw data
for further analysis, Primary source is used by the face-to-face survey with the customers of
the company.

Secondary Source:

Secondary source is the internet, magazines, and old data files of the research.

Sampling Technique

The sampling technique which has been used in this research is simple Random sampling.
This has been used in order to simplify the process of sample collection and to use our own
wisdom and parameters in relation to selection of sample.

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Sample size: 50

Period of study --45

Sample Area: Hyderabad

LIMITATION OF THE STUDY

The whole work is based on areas falling under Udyog vihar & DLF. The surveyed areas are

just small divisions of the large market due to lack of time, financial & transport problem. So

my research cannot be generalized on state or national levels. I have contacted only 100

retailers, 10 Distributor and 200 consumers for assessing the effectiveness of the promotional

activities of Coca- Cola. The people who have been contacted from a very small part of

whole soft drink market.

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 CHAPTER

PLAN CHAPTER-1

• Introduction

• Scope of the study

• Objective of the study

• Methodology of the study

• Limitation of the study

CHAPTER-2

• INDUSTRY PROFILE

COMPANY PROFILE

CHAPTER- 3

• REVIEW OF LITERATURE

CHAPTER-4

• DATA ANALYSIS & INTERPRETATION

CHAPTER – 5

• FINDINGS

• CONCLUSION

• SUGGESTIONS

• BIBLIOGRAPHY

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 CAPTER 2

LITERATURE REVIEW

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REVIEW OF LITERATURE

However a number of studies have been conducted in the form of surveys and research work

done on. Consumption pattern and Promotional strategiestowards soft drink product. An

attempt has been made to understand and acknowledge the work of various researchers in the

field of Promotional strategiesand consumption pattern of soft drinks.

          In their studies soft drink industry in India is one of the most competitive with many

international and domestic players operating in the market. Initially domestic player like pare

group dominated the Indian soft drink market. However with the re-entry of MNC players

like pepsin 1991 and coca-cola in 1993, the market took a decisive shift in favour of these

MNCs and over the years coca-cola and pepsi have become the prominent players in the

market.

                   Studies of soft drink market Indian soft drinks market grew 7.7% in 2008 to reach

a value of$3.4 billion. In 2013,the Indian soft drinks market is forecast to have a value of

$4.6 billion. An increase of 36.9% since 2008. All the major players in cola market put their

best strategies to capture more and more out of this lucrative progress. In the modern arena of

information, it takes something or someone special to please the consumer. A celebrity is

often considered to be the vital basis for the brand association of a product and this fact

becomes stronger when it comes to soft drinks industry in India. India is one country, which

has always idolized the stars of the celluloid world. Therefore in the words of Mccracken, a

celebrity endorser is someone who besides enjoying popularity and public recognition, uses

this recognition to promote a consumer good or service by appearing in the advertisements

for the same. It is not essential (rather it is seldom the case) that a celebrity in a particular

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field promotes the products only in that particular domine. It is the credibility of the endorser

which helps in the repurchase or first time purchase of the product. It may be said that the

celebrity transfers some of his/her traits to the product or service (or atlest it is so perceived

by the customer). Even the studies conducted by Agrwal, Kamakura & Mathur and Mathur &

Ranjan, emphasized the effectiveness of using a celebrity endorsers. In India there is an

exponential potential for a celebrity endorsement to be perceived as genuinely relevant,

thereby motivating consumers to go in for the product. No wonder India’s and market which

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

ads featuring celebrities.

• With amplification in number of mass media option and competition for consumers

attention, cola giants are increasingly using celebrity endorsement strategies to break through

the clutter and enhance the equity for their brand. Although celebrity endorsement has

emerged as a popular advertising practice, not much research has been done to evaluate the

effectiveness of it in India. some of the facts which support the trend of celebrity

endorsement in general and across soft drinks market in India are:

• Celebrity endorsement advertisement on TV up 49% in 2007

• Pepsi ropes in Chiranjeevi Jr to take on thums up in AP Marketers overtly acknowledge the

power of celebrities in influencing consumer-purchasing decisions. It is an ubiquitiously

accepted fact that celebrity endorsement can bestow special attributes upon a product that it

may have lacked otherwise. Although celebrity advertising celebrity advertising for soft

drinks brands is popular in India. Little is known about its effectiveness in India. Thus the

primary motive behind this research project is to measure this effectiveness using some of the

existing scale and methodologies and try and establish the relationships which exist between

the attitude of the youths towards celebrity endorsement and their brand loyalty towards a

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low involvement product soft drink brand while paying special attention on the personality

traits of the celebrity endorsing the soft drink brand. This should give us an insight into the

consumer behaviour in response to celebrity endorsement in case of carbonated soft drinks.

Every Research study is based on the theory. This theory is known as the theoretical

framework of the study. That means the theoretical framework gives authentic support for

successful completion of research work. One of the most competitive market in the world at

present is the soft drink market in which cores of rupees on advertisement and other

promotion activities are being spent. It is one of the many sectors, registering steady growth

over a hundred years throughout the world. In India the soft drink industry is flourishing well

with a wide range of brands comprising both popular-international, national and regional

branded soft drinks. In present investigation, the impact of globalization on Promotional

strategiesof soft drinks and the factor determining the Promotional strategiesare studied.

What is soft drink?

A non-alcoholic, flavour, carbonated beverage,usually commercially prepared and sold in

bottles or cans. Nonalcoholic beverage,usually carbonated, consisting of water (soda water),

flavoring, and a sweet syrup or artificial sweetener. Today there are hundreds of varieties of

flavored soft drinks. Coca-cola and pepsico are the world’s largest corporation founded their

business on soft drink manufacturing

Soft drinks can trace their history back to the mineral water found in natural spring.bathing in

natural springs has long been considered a healthy thing to do; and mineral water was said to

have curative power. Scientists soon discovered that gas arbonium or carbon dioxide was

behind the bubbles in natural mineral water.

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 The marketed soft drinks (non-carbonated) appeared in the 17th century. They were made

from water and lemon juice sweetened with honey. In 1679, the compagine delimonadiers

Paris were granted a monopoly for the sale of lemonade soft drinks.

Raw materials used in soft drinks

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

materials are :

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

contains 95% of water.

Ø  Flavor: flavor is of great importance in soft drink. Even water from different places has

different taste. The flavor for taste added can be natural or artificial, acidic, caffeine.

Ø  Acids: acids like citric acid & phosphoric acid are added to give refreshing tartness or bite &

help in preserving the guality of a drink.

Ø Natural flavors: these are the flavors, which are extracted from fruits, vegetables, nuts, barks,

leaves etc. in soft drink containing natural flavors& fruit juice.

Ø Artificial flavor: these are the flavors manufactured from natural extracts. This is used to give

greater choice, in taste to consumers.

Ø Caffeine: caffeine has special kind of taste makes the taste of soft drink a royal one.caffeine

was added to soft drink from its introduction to a commercial market but now caffeine free

soft drinks are also available. Its quality is Y4 than compared with same amount of coffee.

Ø Carbon dioxide: carbon dioxide is a colorless & smell less gas, which is added to cold drink to

get bubble & it also help in keeping drink strong &fresh

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Ø  Color: along with taste of soft drinks is also of very important, the company tries to maintain

both taste & colur of the soft drink every where in the world.

Ø Sugar:sugar syrup is added to the drink at around 75 degree C to the pure drinking water ,this is

to make soft drink taste sweet. Even artificial sweetness is also use

Distributions of soft drinks

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

I. Distribution according to taste

2. Distribution according to taste

Ø Distribution according to taste:the soft drinks can be distributed in cola&nonc ola taste. Non

cola taste consist of drink of orange, lime,mango etc. & clear lime.

Orange taste market is occupied by brands like fanta, mirinda orange&crush. Mango taste market

occupied by brands like slice, maaza and frooti. Cloudly lime taste is occupied by 7 up,

sprite. This is basically produced in green bottle as sunlight spoils the taste of the drinks.its

color is transparent like water.

Ø Distribution according to the consumption: 80% of soft drinks are drinks are consumed on the

spot, where it is sold at place like cinemas,railway stations etc. other 20% of the market of

soft drinks is consumed at home or other place

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TYPES OF SOFT DRINKS

FANTA

Fanta originated as a result of difficulties importing coca cola syrup into nazi germane during

world War II due to trade embargo. To circumvent this, max Keith, the head of coca cola

Deutschland(coca cola gmbh) during the second world war, decided to create a new project

for the German market, using only ingredients  available in Germany at the time including

whey and pomance – “leftovers of leftovers “ as Keith later recalled. The name was a result

of a brief brain storming section, which started with Keith ‘s exhorting his team to “use their

imagination (“fantasie” in German) to which one of his sales man, Joe Knipp, immediately

retorted “fanta”

The plant was effectively cut off from coca cola head quarters during the war. After the war,

the coca cola Corporation regained control of the plant, formula and trade mark to the new

fanta product as well as the plant profit during the war.

Fanta was discontinued when the parent company was reunited with the German branch.

Following the launch of several drinks by the Pepsi corporation in the 1950’s, coca cola

competed by relaunching fanta in 1955. The drink was heavily marketed in Europe, Asia,

Africa and South America.

SPRITE

Sprite is a colourless, lemon and lime flavoured, caffeine-free soft drink, created by the coca-

cola company. It was developed in West Germany in 1959 as FANTA KLARE ZITRONE

(“clear lemon fanta”) and introduced in the United States as sprite in 1961. This was coke’s

response to the popularity of 7 up. It comes in a primary silver, green, and blue can or a green

transparent bottle with a primarily green and blue label.

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COCA-COLA

Coca-cola is a carbonated soft drink sold in stores, restaurant, and vending machines

throughout the world. It is produced by the coca-cola referred to simply as coke (a registered

trademark of the coca-cola company in the united states since march27, 1944). Originally

indented as a patent medicine when it was invented in the late 19 th century by John

Pemberton, coca-cola was brought out by businessman Asa Griggs Candler, whose marketing

tactics led coke to its dominance of the world throughout the 20th century.

The company produces concentrate, which is then sold to licensed coca-cola bottlers

throughout the world. The bottlers , who hold territorially exclusive contracts with the

company, produce finished products in cans and bottles from the concentrate in combination

with filtered water and sweeteners. The bottlers then sell and merchandise coca-cola to retail

stores and vending machines. The coca-cola company also sells concentrate for soda

fountains to major restaurants and food service distributors.

The coca-cola company has, on occasion, introduced other coca drinks under the coke brand

name. The most common of these is diet coke, with others including caffeine – free coca-

cola, diet coke caffeine-free,coca-cola cherry, coca-cola zero, coca-cola vanilla, and special

versions with lemon, lime, or coffee. Inn 2013, coke products could be found in over 200

countries worldwide, with consumers downing more than 1.8 billion company beverage

servings each day.

PEPSI

Pepsi is a carbonated soft drink that is produced and manufactured by pepsico. Created and

developed in 1893 and introduced as brad’s drink, it was renamed as poepsi cola on aug 28,

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1898 then to pepsi in 1961, and in select areas of north America, “pepsi-cola made with real

sugar” as of 2014.

The drink pepsi was first introduced as “Brad’s Drink” in New Bern,North Carolina, United

States, in 1893 by  Caleb Bradham, who made it at his drugstore where the drink was sold. It

was renamed pepsi –cola in 1898,named after the digestive enzyme pepsin and kola nuts used

in the recipe. The original recipe also included sugar and vanilla.Bradham sought to create a

fountain drink  that was appealing and would  aid in digestion and boost energy .

In 1903,Bradham moved the bottling of pepsi-cola from his drugs stores to a rented

warehouses that year, bradham sold 7968 gallons of syrup. The next year, pepsi was sold in

six-ounce bottles, and sales increased to 19848 gallons. In 1909, auto mobile race pioneer

Barney oldfield wasthe first celebrity to endorse pepsi cola,describing it as “A bully drink...

refreshing, invigorating, fibracer before a race”. The advertising theme “delishes and

healthful” was then used over to the next two decades. In 1926, pepsi received its first logo

redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the great depression, the pepsi-cola company entered brankruptcy in

large part due to financial losses incurred by speculating on the widely fluctuating sugsr

prices as a result of World War I. Assets were sold and roy c. Megargel bought the pepsi

trademark.Megargel was unsuccessful, and soon pespi’s assets were purchased by  Charles

Guth, the president of Loft, inc. Loft was a candy manufacturer with retail stores that

contained soda fountains. He sought to replace coco-cola at his stores fountains after coke

refused to give him a discount on syrup. Guth then had lofts chemists reformulate the pepsi-

cola syrup formula.

On three separate occasions between 1922 and 1933, the coco-cola company was offered the

opportunity to purchase the pepsi-cola company, and it declined on each occasion.  

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NATURE OF SOFT DRINK MARKET

Oligopoly

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

are the only producers.an oligopoly is a market dominated by a few large suppliers the degree

of market concentration is very high (i.e.a large % of the

market is taken up by the leading firms).firms within an oligopoly produce

branded product (advertising and marketing is an important feature of

competition within such markets) and there are also barriers to entry.

Another important characteristic of an oligopoly is interdependence between

firms. this means that each firm must take into accounts the likely reactions of

other firms in the market when making pricing and investment decisions. This

creates un certainty in such markets which economists seek to model through the use of game

theory.Economics in much is much like a game in which the

ayers anticipate one another’s moves.

By Promotional activities The ongoing interdependence between business can lead to implicit

and explicit collusion between the major firms in the market. Collusion occurs when business

agree to act as if they were in a monopoly position.

 Key features of oligopoly market

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Ø A few firms selling similar product

Ø Each firm produces branded products

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

make supernormal profits.

Ø Interdependence between competing firms. Business have to take into account likely reactions

of rivals to any change in price and output.

Theories about oligopoly market

There are four major theories about oligopoly pricing:

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

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

competitive industry

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

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

interdependent price and output decisions

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

Market include

Barriers to entry:

Ø Cost of Establishment: Due to high capital intensive reguirement to establish new bottling

plants, investors cannot entry into the market. This financial barrier can be a major barrier for

new entrant

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Ø Advertising expenses

Ø Brand image and loyalty

Ø Retailers shelf space and retail distribution channel

Ø Threats of substititute

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

switch to substitute products

Ø  Perceived price value: prerceived price value in this industry is very low because all products

comparatively same and most of the times differentiated

Major market players

The Disadvantages of Soft Drinks

Dehydration

Sixty percent of our boady weight is comprised of water,report mayo clinic.com. we lose

water when you sweat, urinate and breathe. For the body to continue functioning properly,we

must replace the lost water with ingested fluids.sodas are often consumed in the place of

water or other hydrating fluids. Many sodas contain caeffine,which acts as a diuretic,

increasing urination and leaving the body with less available fluid to carry out important

function.addftionally, some diet sodas contain significant amounts of sodium,which may

draw water from the cells and promote dehydration

High sugar content.

Many soft drinks contain significant quantities of sugar.one 12-ounce serving of cola,for

example, includes 39 grams,or 3.3 tablespoon, of sugar. Consuming such large quantities of

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sugar elvates your blood glucose level and may increase your risk for cardiovascular disease.

Additionally, may sodas contain high fructose corn syrup or HFCS as their primary sugar

ingredient. HFCS may stress the pancreas and lead to fluctuating blood sugar levels.

Consuming sugary sodas day after day can contribute to the onset of non-insulin dependent

diabetes,or type 2 diabetes.

Weight Gain

Weight gain result when you consume more calories than your body burns. A 12-ounce

serving of cola contains 140 calories, often called “empty calories” Because they provide no

nutritional value.drinking one can of cola a day for four Weeksis equivalent to ingesting

3,920 extra calories,or a gain of 1.1 pounds if the calories are not burned. A 160-pound

person must walk for 27 minutes at 3.5 miles per hour to burn off the calories in one can of

cola, according to the calorie-expenditure analysis provided by the MayoClinic.com. If these

calories are not burned, you may gain more than 12 pounds in one year. Additionally, sweet-

flavored sodas may disrupt appetite signals and promote cravings for other sugary foods.

Calcium Depletion

Calcium is an essential mineral for strong bones and teeth. Consuming high amounts of

phosphoric acid, a common ingredient in sodas, can deplete the calcium from your bones and

decrease calcium absorption. Among women, this may lead to poor bone development or

osteoporosis, a condition characterized by brittle and weak bones.

24
Promotional strategy is a method used by companies to advertise, promote & sell their goods.

A company chooses its promotional strategy based on factors like product type, marketing

budget, target audience etc. It is a critical activity to increase product awareness & thereby

increase sales. An effective promotional strategy gets more revenue as compared to the

marketing spend.

Importance of Promotional Strategy

Promotion for any product or service is essential for any company. It is because only through

promotion people would come to know about the product. Only after knowing about the

product they consider purchasing. Since there are some many companies & brands competing

to sell their products to the same set of customers, advertising & promotion are important

tools to ensure each brand is differentiated & identified. 

Promotional Strategy Types

All the promotional strategies can be classified under two categories – Push and Pull.

1. Push strategy

25
In push strategy promotional activities are done for the distributors, wholesalers and retailers

to push the product to the consumers. Trade fairs, wholesaler discounts, bonus and all the

activities which benefit the distributors are all examples of push strategies. Hence the demand

is pushed or created in the distribution channel. These activities are not visible to consumers

and hence it is mostly unknown to the customers.

So when one goes to a mobile store to buy a new phone and the shopkeeper urges and shows

only Samsung phones, it is push marketing and the shopkeeper is getting more margin on

selling Samsung phone than any other brand.

2. Pull Strategy

In pull strategy promotional activities are done for the consumers. Advertisements, digital

campaigns, discounts in stores etc are some examples of pull strategy. Hence demand is

created in the consumers which in turn go to the retail stores or e-commerce websites to buy

these products. These activities are visible to all the customers.

When a customer goes with a specific brand and product in his mind to the market, it is the

pull strategy that has worked for the company.

Promotional Strategy Steps

The process steps for driving promotion for any product or service are:

1. Identify the objectives of promotion- This should be a quantifiable amount in terms of

revenue, unit sales, increase brand awareness etc.

2. Evaluate promotional channels- This involves evaluating the marketing channels required

for promotion eg TV, social media, radio, events, trade fairs etc.

3. Formulate a marketing budget. The amount investment required for driving a promotional

strategy should be allocated channel wise. This would help in keeping track of investments.

26
4. Execute promotional activities- This involves creation of advertising campaigns,

scheduling advertisements and making sure that promotions are happening without

disruptions.

5. Monitor, measure & evaluate- All promotional activities must be monitored for

effectiveness & evaluated for further improvement.

All these steps have to detailed for having an effective promotional strategy.

Hence, this concludes the definition of Promotional Strategy along with its overview.

In order to create your brand promotion, it’s critical to gain a good understanding of

what makes your product or service unique. Find out where you stand in the competitive

landscape and pinpoint what it is about what you offer that is truly different from the others.

This will help you figure out how you will promote your business.

WHAT IS A PROMOTION STRATEGY?

A promotion strategy is an actionable plan to influence people about your business,

generate more leads, and boost customer engagement. It visualises how to perform your

marketing strategy and communication, who to target as your audience, and where and when

to execute the promotion plan.

Many marketers spend more on business promotion each year, but they receive less. There

are too many options and marketing voices, so you have to make sure that your messages are

reaching the people you want to approach when you promote your business.

What’s more, it is very difficult to convert people into customers without resonating

marketing voices to create emotional connections and arouse interests and demands to your

offers.

27
ROLE OF PROMOTIONS

When it comes to business promotion, it is one of the 4 P’s of the marketing mix. It is a part

of marketing communication which reaches your target market to gain awareness and foster

conversation with prospects and customers.

Promotion helps you to draw the attention of your target, create interest in your products and

services, generate demands, and encourage them to purchase from you.

The following are the four main roles of promotion:

Build awareness

Making your target audience aware of your products and services. You must identify your

target audience, your promotional marketing messages, and your outreach strategies.

Foster interests 

Gaining their interests in your business. It requires a well-designed content marketing

strategy to provide enough information for lead nurturing, and show uniqueness for

differentiation from competitors.

Generate demand

Making your products and services desirable. You can share great features and benefits and

create an emotional connection with your prospect.

28
Induce prospects to take action

Placing a call-to-action for your target to easily engage and find the next steps. Anywhere

you can position to drive conversions, such as your website, digital advertising, and social

media.

As you can see, these are following the AIDA marketing models. It means that promotion can

contribute to all the consumers buying processes.

Besides, it will help you to establish a stronger relationship and cultivate the repeated

customer to stay longer with you.

TYPES OF PROMOTION

There are many promotional marketing approaches where you can attract your prospects and

customers and draw people into the AIDA process. From traditional promotions like face-to-

face selling to digital advertising and the customer loyalty program.

Personal (face-to-face) selling

Salespeople from a company give you a sales presentation in person to persuade them. Unlike

the other approaches, it is easier to build relationships with you.

Traditional advertising 

You can use any paid advertisements to reach a bigger audience and prompt short-term

engagement and sales. It is one-to-one marketing, and its costs are based on the bidding.

i.e.) Print ads, billboards, TV, radio, etc.

Direct marketing

It is direct communication with a highly-targeted audience through marketing channels. It has

more chances to get quick feedback and retain customer relationships.

29
Just think that your company is still breathing just because of your customers. Once

customers have used your product and liked it, there are chances that they are going to be

connected with you for a long time. Therefore, don’t make a mistake to overlook these

customers. You can ask them to share their details in exchange for gifts or services. You can

use that information to promote your product in a new market where people are totally

unaware of the existence of your product.

The first thing you need to note is that your business is still alive because of the regular

consumers who come to your business. Once customers are fully engaged with your

products, they will always want to buy from you. However, most businesses tend to make the

mistake of avoiding customers in a way; they do not involve customers in sharing

information about what they feel concerning a product in question. 

Remember one thing; every customer who comes to your business should not be overlooked.

They already made the decision that they are going to buy your products. The best thing to do

is get as much information from your customers as you can. You can offer them a product or

service in exchange for the information you get from them. The information obtained will

help you market your products to a new market that completely know nothing about your

products.

Social Media

There are various platforms online where you can promote your products and can

reach a huge number of audiences. There is hardly any person who is not using either

Facebook or Instagram. By using this platform, you can make people aware of your product.

You can talk about its uses and how it is essential for them. In addition to this, you can show

people how your product is better than other similar product, unlike other promotional

strategies which are blindly pushing their product on everyone. You can make sure that your

product has reachability to your potential customers who have high chances to get converted

30
if you don’t believe me. Just go and open your Facebook app. You will understand what I am

trying to say. There are 90% chances that you will find the advertisement for “Zomato”

offering you a 50% discount on your first order. If you are either feeling hungry or it is 12 pm

(lunchtime).

The use of social media as a promotional strategy is direct marketing at its best. Social

networking platforms like Facebook, Twitter and Google+ have over millions of users

visiting on a daily basis, and this makes it easy for a business to get in touch with people out

there, even to a personal level. Social media is a more relaxed environment for promoting

your product. Instead of your company ‘trying to sell’ its products to the consumers out there,

social media allows you to get in touch with consumers in a more relaxed way. There is a

wide pool of potential customers out there, and social media allows you to connect with them

easily, all of whom can view your company or business from a different perspective. 

An ideal factor to keep in mind is a business presence on social media. Of course, you want

to make sure that you present your business exactly according to your brand. Create content

that will inform your readers; those you interact with, about the product your business sells.

Sales promotion

Performing a short-term marketing campaign to gain attention and encourage

conversion or purchase. You can get immediate responses and interact, but it’s not good for

developing a long-term relationship.

In stores, products are displayed strategically so that they come first in the eyes of customers

as soon as they enter the store. Stores do this for two reasons: convenience and impulse.

Many times, you have noticed a rack displaying attractive offers on a certain product or many

products are displayed near the aisle of the store. There are reasons why stores do this. They

do this either to boost the sale of the product or when they want their stock moving. This

31
strategy makes people buy certain products impulsive while they wait for their turn to check

out.

Branded Promotional Gifts 

This is an effective strategy used by many companies to promote their brand. In this strategy,

rather than handing out the business card, they print the business name, logo and contact

information on a functional gift. For example, companies in Japan distribute millions of

napkins with their brand’s name printed on its envelope. The logic behind doing this is that

people usually discard business card without even looking at them. However, a napkin is a

useful thing people don’t throw away, and there are high chances that it will stay with the

person it is handed to, for a longer period of time. This is also the best way to keep your

customers happy because people love getting free gifts and a happy customer will definitely

bring you more business.

Public relations

To build a good corporate image and cultivate a stronger customer relationship, you

can provide appropriate information and handle both positive and negative voices from

consumers.

One of the best promotion techniques is public relations, which refers to developing a

positive brand image in the media. It’s a way to connect with your target audience by sharing

favourable information about your business. Companies conduct public relations efforts

through press conferences, press releases and media interviews. Often, organisations will also

use sponsorships as a public relations method to establish a positive image for their

organisation. Small businesses can sponsor local fairs or markets in addition to local kids

sports teams.

32
 

After-Sale Customer Survey

Reaching your customers through telephonic calls or emails or text messages to know about

their experience shopping with you does three jobs: 1. It makes your customers believe that

you care for them. 2. It opens the doors for promotional activities. 3. Your customer’s

feedback can help you to improve your business.

During the conversation, you can also educate your customers about the on-going or

upcoming offers on your products. If they are happy with your services, then you can politely

ask them to give a positive review online. It will improve the image of your business.

Word-of-mouth marketing

It is the process to motivate people to share information about your products and services

with others. Since people trust words more from close people than from a company, it will

bring qualified leads.

Free Product and sample Giveaways 

Product giveaway is a great promotional strategy that guarantees success for an enterprise.

Here, you can give customer products as samples. If you are dealing with products like food

and other household goods, giveaway could be a great technique to get people engaged in

your products. It is important to note that this is a great technique to entice your target

audience to purchase from you.

This promotional strategy is used by both small as well as powerful companies. By using this

strategy, you can boost the sale of your product instantly. This strategy is mostly adopted by

food or cosmetic companies. They provide a sample of their products free of cost and make

33
people try new products. You must have noticed a small counter of some brand in a shopping

mall which gives away samples of products to every passer-by, or sometimes they ask for

personal details like an email address from people whom they are giving free samples. Later

you can use this information to promote your product.

Throwing contests for promotion 

This type of promotional strategy is quite frequently used by companies to make a place for

their newly launched product in the market. You must have noticed many bloggers and

YouTubers posting about their partnership with various brands and asking their customers to

do various tasks to get a chance to win the contest. In addition to this, companies also offer a

certain discount if a customer enters the code provided by a specific YouTuber or Blogger.

Or you can also organise contests in a traditional way such as organising a contest in the store

and asking customers to participate in standing a chance to win.

Customer loyalty program

A Customer Loyalty program induces your current customers to make frequent purchases and

retain them, which brings you great profits in the long run.

Customer Incentive Referral Program

This promotional strategy will use your current customers and encourage them to refer your

products or services to their families and friends. You can offer them gifts or discounts on

their next purchase in exchange for their referral. For example, many e-commerce companies

run “Customer Incentive Referral Program” to increase their customer base using their

existing customers. This strategy is far less expensive than the traditional style of advertising.

34
 

Customer’s Appreciation Events

This type of strategy involves throwing a small party for your customers. This small gesture

will not cost you as much as fancy advertisements will cost you, but it will improve the

loyalty of customers towards your brand. You can also organise small competitions where

you can provide gift hampers to the winner, or you can also give them a discount on their

next purchase. To make this kind of event more attractive, you can also offer food items like

pizza, soft drinks or some other snacks. This will attract customers to your store. Make sure

to display products that you want to promote strategically so that it comes in the eyes of

people.

Causes and Charity

People want to connect with those companies which are giving back to society along with

providing excellent services. Therefore, many small, as well as power companies, use this

strategy to strengthen their customer base. To do this, you need to tie-up with some charity

organisation or an NGO. Then you can advertise your initiative on your social media handles,

website, and in your stores so that people become aware of it and will buy your products to

do their bit for society. A classic example of this promotional strategy used by a stationery

company “Classmate”. Classmates tell their buyers that they will pay “one rupee” for the

education of unprivileged children for every product bought by you. This strategy makes the

use of emotions of human beings to boost sales. There is no harm to give a try to this

strategy.

35
Promotional strategies are the plans and tactics implemented by brands that want to promote

themselves in the market and increase their sales, drive more revenue, build brand equity, and

build recall for their products and company. The applications of promotion strategies are

manifold and they can be used in various methods to achieve different objectives. The best

part about promotions is that they are versatile. If you are creative, the sky is the limit.

You are not a marketer if you haven’t heard about four Ps of marketing which is the product,

price, place, and promotion. In this article, you will learn about the last P – Promotion.

Nowadays, the promotion has become an integral part of every business.

In present times, companies opt for various techniques and methods to attract customers and

to convince them to buy their products. Let us understand this better with an example.

Just assume you are a marketing manager of a company which manufactures jogging shoes.

You want people to know about the existence of your product and you want that everyone

should own at least one pair of jogging shoes manufactured by your company. Now, it is your

job to figure out how to make people aware of your plan or how to convince them to buy

specifically jogging shoes manufactured by your company only.

Your plan to make this happen will be your promotional strategy to promote your product.

There are various components that will influence your promotional strategy. In the next

section, you will learn about the various components of a promotional strategy.

36
1) Budget

Budget is one of the factors that influence your promotional strategies a lot. Sometimes you

have the freedom to decide the budget of your strategy and on other times you will be given a

budget by others to plan your promotional strategy. However, whatever the situation is you

should know beforehand how much you can invest in promotion to boost the sale of the

product.

2) Message

When you are setting your product out in marketing, you require a message that will make

your product stand out among other similar products. What are the qualities of your jogging

shoes that everyone should have them? It is not an easy task to find the right message for

your product. It will require a lot of brainstorming.

3) Target Market

A promotional strategy is incomplete without the target market. whether your product is

designed for females or males? of what age? You must decide your target market before

setting your product out in the market. if you are sure of your target market your work will

become easy to plan your promotional strategy.

37
4) Strategy

There are various types of promotional strategies that you can opt to promote your product.

You must figure out which type of promotional strategy is going to boost your sales. You can

also observe the promotional styles of companies which are selling similar products. for

example, you can use “Push Strategy of “Nestle” which uses high-profile advertising to push

its products onto people. Or you can use the promotional strategy of Rolls -Royce, which has

built a prestigious brand name that people what to own their car. The promotional strategy

used by Rolls Royce is called “Pull Strategy”, where merely name of your brand will pull

customers. Choose your strategy wisely before investing in it.

These are four important components of Promotional Strategies. In the next section, you will

learn about the different types of promotional strategies.

Types of Promotional Strategies

1) Social Media

There are various platforms online where you can promote your products and can reach a

huge number of audiences.  There is hardly any person who is not using either Facebook or

Instagram. By using this platform, you can make people aware of your product. You can talk

about its uses and how it is essential for them. In addition to this, you can show people how

your product is better than other similar product. Unlike other promotional strategies which

are blindly pushing their product on everyone. You can make sure that your product has

reachability to your potential customers who have high chances to get converted. if you don’t

believe me. Just go and open your Facebook app. You will understand what I am trying to

38
say. There are 90% chances that you will find the advertisement for “Zomato” offering you a

50% discount on your first order. If you are either feeling hungry or it is 12 pm (lunchtime).

2) Mail Order Marketing

Just think that your company is still breathing just because of your customers. once customers

have used your product and liked it, there are chances that they are going to be connected

with you for a long time. Therefore, don’t make a mistake to overlook these customers. you

can ask them to share their personal details in exchange for free gifts or services. You can use

that information to promote your product in a new market where people are totally unaware

of the existence of your product.

3) Free Product and sample Giveaways

This promotional strategy is used by both small as well as powerful companies. By using this

strategy, you can boost the sale of your product instantly. This strategy is mostly adopted by

food or cosmetic companies. They provide a sample of their products free of cost and make

people try new products. You must have noticed a small counter of some brand in a shopping

mall which gives away samples of products to every passer-by or sometimes they ask for

personal details like an email address from people whom they are giving free samples. Later

you can use this information to promote your product.

4) Customer Incentive Referral Program

This promotional strategy will use your current customers and encourage them to refer your

products or services to their families and friends. You can offer them gifts or discounts on

39
their next purchase in exchange for their referral. For example, many e-commerce companies

run “Customer Incentive Referral Program” to increase their customer-base using their

existing customers. this strategy is far less expensive than the traditional style of advertising.

5) Point of Sale Promotion and End Marketing

In stores, products are displayed strategically so that they come first in the eyes of customers

as soon as they enter the store. Stores do this for two reasons convenience and impulse. Many

times, you have noticed a rack displaying attractively offers on a certain product or many

products are displayed near the aisle of the store. There are reasons why stores do this. They

do this either to boost the sale of the product or when they want their stock moving. This

strategy makes people buy certain products impulsive while they wait for their turn to check

out.

6) Branded Promotional Gifts

This is an effective strategy used by many companies to promote their brand. In this strategy,

rather than handing out the business card they print the business name, logo and contact

information on a functional gift. For example, companies in Japan distribute millions of

napkins with their brand’s name printed on its envelope. The logic behind doing this is that

people usually discard business card without even looking at them, however, a napkin is a

useful thing people don’t throw it away and there are high chances that it will stay with the

40
person it is handed to, for a longer period of time. This is also the best way to keep your

customers happy because people love getting free gifts and a happy customer will definitely

bring you more business.

7) Causes and Charity

People want to connect with those companies which are giving back to society along with

providing excellent services. Therefore, many small, as well as powerful companies, use this

strategy to strengthen their customer base. To do this, you need to tie-up with some charity

organization or an NGO and then you can advertise about your initiative on your social media

handles, website, and in your stores so that people become aware of it and will buy your

products to do their bit for the society. A classic example of this promotional strategy used by

a stationery company “Classmate”. Classmate tells their buyers that they will pay “one rupee”

for the education of unprivileged children for every product bought by you. This strategy

makes the use of emotions of human beings to boost sales. There is no harm to give a try to

this strategy.

8) After-Sale Customer Survey

Reaching your customers through telephonic calls or emails or text messages to know about

their experience shopping with you does three jobs: 1. It makes your customers believe that

you care for them. 2. It open the doors for promotional activities. 3. Your customer’s

feedbacks can help you to improve your business.

41
During the conversation, you can also educate your customers about the on-going or

upcoming offers on your products and if they are happy with your services then you can

politely ask them to give a positive review online. It will improve the image of your business.

9) Customer’s Appreciation Events

This type of strategy involves throwing a small party for your customers. this small gesture

will not cost you as much as fancy advertisements will cost you, but it will definitely improve

the loyalty of customers towards your brand. You can also organize small competitions where

you can provide gift hampers to the winner or you can also give them a discount on their next

purchase. To make this kind of event more attractive you can also offer food items like pizza,

soft drinks or some other snacks. This will attract customers to your store. Make sure to

display products that you want to promote strategically so that it comes in the eyes of people.

10) Throwing contests for promotion

This type of promotional strategy is quite frequently used by companies to make a place for

their newly launched product in the market. you must have noticed many bloggers and

YouTubers posting about their partnership with various brands and asking their customers to

go do various tasks to get a chance to win the contest. In addition to this, companies also

offer a certain discount if a customer enters the code provided by a specific YouTuber or

Blogger. Or you can also organize contests in a traditional way such as organizing a contest

in the store and asking customers to participate to stand a chance to win.

42
 CHAPTER –III

COMPANY ROFILE

INTRODUCTION FOR COCA COLA COMPANY

You may know The Coca-Cola Company.

43
 ... as the largest beverage company with the most extensive distribution system in the

world. You may know us simply as Coca-Cola--the world's most valuable brand and a global

icon.

The Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of

nonalcoholic beverage concentrates and syrups. Its world headquarters is based in Atlanta,

Georgia. The company and its subsidiaries employ nearly 31,000 people around the world.

The Coca-Cola Company manufactures syrups, concentrates and beverage bases for Coca-

Cola, the company’s flagship brand, and also produces over 230 other soft-drink brands sold

by and its subsidiaries in nearly 200 countries around the world. Some of Coca-Cola’s latest

domestic marketing strategies include Coke dominating fountain sales. Thousands of

consumers visit fast-food restaurants every day and Coke feels that it is very important to

have the consumer see and drink their product at such chains as McDonalds, Burger King,

and Domino’s Pizza. Coca-Cola is also testing a new plastic cup in the famous Coca-Cola.

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

The Coca-Cola system's customers are the grocers, retailers, street vendors and store owners

who sell our products to our consumers. We have millions of these partners in the more than

200 countries where we operate.

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton. Today,

the company is the world's leading manufacturer in the beverage industry, operating globally

in more than 200 countries with its head office located in Atlanta, USA. It produces more

than 300 beverage brands and over 1.06 billion drinks are consumed per day around the

world.

Mission Statement

44
The Coca-Cola Company's mission statement is:

'Remind Coca-Cola is the read thing' but their motto now has changed to 'To benefit and

refresh everyone who is touched by our business.'

Also Coca-Cola would hope to provide the best quality drink for everyone, all the employees

working for them being at their top and fullest.

Approximately 50 billion times a day, someone drinks a beverage. Our beverages are enjoyed

more than 1.3 billion of those times. That means there are over 48 billion beverage choices to

capture.

We built on our formidable assets: our brands, financial strength, unrivaled distribution

system and our people. And we have made progress toward sustainable growth.

We sharpened our focus on what the world wants to drink and why, and we continued our

efforts with local leaders to support communities around the world.

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

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

concentrates and syrups worldwide. It principally offers sparkling and still beverages. The

company’s sparkling beverages include nonalcoholic ready-to-drink beverages with

carbonation, such as energy drinks, and carbonated waters and flavored waters.

Its still beverages consist of nonalcoholic beverages without carbonation, including non-

carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas,

coffees, and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups, and

concentrates, such as flavoring ingredients and sweeteners.

45
 The company markets its nonalcoholic beverages under the Coca-Cola, Diet Coke,

Fanta, and Sprite brand names. The Coca-Cola Company also owns mineral water brands

Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa in Finland. It sells its

finished beverage products primarily to distributors, and beverage concentrates and syrups to

bottling and canning operators, distributors, fountain wholesalers, and fountain retailers. The

company was founded in 1886 and is headquartered in Atlanta, Georgia.

The Coca-Cola Company's products include beverage concentrates and syrups, with the main

product being finished beverages.

The business has over 300 brands of beverages around the world with the main ones being

Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.

The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 liters,

1.25 liters, 600mL and 300mL. These are also available in aluminium cans of 375mL.

Coca-Cola is the most well known trademark, recognized by 94 per cent of the world's

population. The business is very successful and holds a very good reputation.

The Coca-Cola Company uses marketing strategies to differentiate its product from its

competitors to gain a competitive advantage. These are listed in the table below.

The Coca-Cola Company.

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

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

countries.

46
The real story of The Coca-Cola Company lies in what we're doing today to build a

sustainable-growth business for tomorrow.

What does sustainable growth look like to us? In 2005, we mapped a long-term plan for our

business, Our Manifesto for Growth. It includes working closely with our bottling partners in

the following key areas:

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

can be.

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

and needs.

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

overall responsibilities.

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

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

Sustainable growth means meeting our short-term commitments while investing to meet our

long-term goals. We are beginning to see results.

On the pages that follow, we'll discuss how our plan is changing the way we think and the

way we operate, and you'll see evidence of the progress we're

The Coca-Cola Company brands include:

 Barq's

 Coca-Cola

47
 Coke Zero

 Dasani water

 Diet Coke

 Glacéau

 Fanta

 Fresca

 Full Throttle

 Fuze

 Hi-C

 Kinley

 Lift

 Lilt

 Mello Yello

 Minute Maid

 Monster Energy distributed by Coca-Cola, made by Hansen Natural

 Oasis

 Odwalla

 Powerade

 Pibb

 Relentless

 Sprite

 Tab

 Thums Up

 Urge

 Vault

48
1886 - Drink 

Slogans from the 1900's

 1904 - Delicious and Refreshing

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

 1905 - Revives and Sustains

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

 1907 - is full of vim, vigor and go

 1908 - Get the genuine

 1909 - Whenever you see an arrow, think of

 1911 - Enjoy a glass of liquid laughter

 1917 - Three Million A Day

Slogans from the 1920's

 1920 - Drink with soda, The hit that

saves the day

 1922 - Thirst knows no season

 1923 - Refresh yourself, There's nothing like it when you're thirsty

 1924 - Pause and refresh yourself

 1925 - Six Million A Day

49
  1926 - Stop at the red sign

 1927 - Around the corner from anywhere, at the little red sign

 1928 - A pure drink of natural flavors

 1929 - The pause that refreshes

Slogans from the 1930's

 1930 - Meet me at the soda fountain

 1932 - The drink that makes the pause refreshing

 1933 - Don't wear a tired, thirsty face

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

 1935 - All trails lead to ice-cold

 1936 - Get the feel of wholesome refreshment

 1937 - Stop for a pause...go refreshed

 1938 - Anytime is the right time to pause and refresh, Pure as sunlight

 1939 - Thirst stops here. Makes travel more pleasant.

Slogans from the 1940's

 1940 - The package that gets a welcome at home

 1941 - A stop that belongs on your daily timetable

 1942 - The only thing like is itself

 1943 - A taste all its own

 1944 - High sign of friendship

50
  1945 - Coke means

 1947 - Relax with the pause that refreshes

 1948 - Where there's there's Hospitality

 1949 -Along the highway to anywhere

Slogans from the 1950's

 1950 - Help yourself to refreshment

 1951 - Good food and just naturally go together

 1952 - Coke follows thirst everywhere

 1953 - Dependable as sunrise

 1954 - For people on the go

 1955 - Americas preferred taste

 1956 - Feel the difference, Makes good things taste better

 1957 - Sign of good taste

 1958 - Refreshment the whole world prefers

 1959 - Make it a real meal

Slogans from the 1960's

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

 1961 - Coke and food

 1962 - Enjoy that refreshing new feeling

 1963 - Things go better with Coke

 1964 - You'll go better refreshed

 1965 - Something more than a soft drink

 1966 - Coke...after Coke...after Coke

51
 Coca-Cola Jingles

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

Slogans From the 1970's

 1970 - It's the real thing

 1971 - I'd like to buy the world a Coke

 1972 - Coke . . . goes with the good times

 1975 - Look up America, see what we've got

 1976 - Coke adds life

Slogans From the 1980's

 1980 - Have a Coke and a smile

 1982 - Coke is it

 1985 - We've got a taste for you. America's real choice Classic!

 1986 - Catch the Wave. Red, white and you!

 1988 - Can't beat the feeling

 1989 - Official Soft Drink of Summer

Slogans From the 1990's

52
Ads of company

HISTORY OF COCA COLA

A pharmacist named Dr. John Stith Pemberton invented the refreshing taste of

Coca-Cola in 1886. Concocted by a mixture of caramel-colored syrup in a three-legged brass

kettle while in his backyard. He then decided to try to “market” the drink at Jacobs’

Pharmacy in his hometown of Atlanta, Georgia. For five-cents, customers were able to enjoy

a glass from the soda fountain. An average of nine drinks were sold a day. In 1891 Dr. John

Stith Pemberton sold Coca-Cola for 2,300 to an entrepreneur named Asa G. Candler. Within

the next four years Coca-Cola was distributed throughout the whole nation. 1893 the Cola-

cola trademark and script were patented. The “two C’s were though to look well for

advertising”. In 1899 large-scale bottling becomes possible when Asa Candler grants Joseph

B. Whitehead and Benjamin F. Thomas exclusive rights for one dollar. But in 1919 Coca-

Cola was sold for $25million to a banker in Atlanta name Ernest Woodruff and a group of
53
investors. That same year, Coca-Cola sold its first share of stock for forty dollars a share.

Assuming all dividends were reinvested, those original shares would have been worth

approximately $6.7 million at the end of the year.

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

manufacturer had built its brand over the years through consistent and effective advertising

campaigns making history over the years. In the recent times the company had suffered

serious setbacks with a number of controversial and negative allegations leveled against it.

Coke was increasingly being associated with health hazards and was under threat in many of

its key markets. Consumption of CSD, which was its core business, had decreased and sales

fell in Western Europe, Philippines and India. Active anti-Coke movements had triggered

severe criticism from many segments of society including students, environmentalists,

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

Isdell, Coke Chairman and CEO devised a plan to revive Coke. Called the ‘Manifesto for

Growth’, the plan included several strategic initiatives including innovation, increasing

marketing investment and introducing new products in the non Carbonated Soft Drink

market.

As part of the plan to revive the Coke brand, ‘The Coke side of life’, a

new global marketing platform was launched in December 2005. The company believed that

this global campaign would return the company to its former glory. Marketing experts were

however skeptical about this. They wondered if the new marketing campaign would help

offset the myriad charges that beset Coke and help to revive the brand.

54
 The case enables students to appreciate the advertising campaigns

that helped build the Coca-Cola Company into a strong brand. It also enables discussion on

the new campaign launched by Coke and its effectiveness in overcoming its problems.

One great earmark that the Coca-Cola Company has is helping

the people of Atlanta. They accomplish this through scholarships, hotlines, donations and

contributions. Another large accomplishment that the Coca-Cola has, is being the first

company to make and use recycled plastic bottles. One way to see all of the achievements of

the Coca-Cola company is to visit the World of Coke in Atlanta. It houses a collection of

memorabilia, samples of the products, exhibits, and many other exciting items. All of what

has been said is the basis of what Coca-Cola was built on. Without societies help, Coca-Cola

could not have become over a 50 billion dollar business. Keep on consuming the world's

favorite soft drink, Coca-Cola.

Until the 1960s, both small town and big city dwellers enjoyed carbonated

beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the

soda fountain counter served as a meeting place for people of all ages. Often combined with

lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft

drinks, and fast food restaurants came to the fore.

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

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

waters.

55
  The first soda fountain patent was granted to Samuel Fahnestock in 1819.

 In 1858, G.D. Dows invented and operated the first marble soda fountain, which he

patented in 1863.

 In 1883, James W. Tufts patented a soda fountain, which he called the Arctic. Tufts

went on to become a huge soda fountain manufacturer.

 On January 25, 1870, Gustavus Dows patented a modern form of the soda fountain.

 In October of 1874, Robert M. Green created the first ice cream soda.

 In 1903, a revolution in soda fountain design took place with the front service

fountain patented by Dr. Heisinger.

More fun facts and trivia

 Coca-Cola can be used to bake a ham.  Pour one can into the baking pan, rap the

ham in aluminum foil, and bake.  Thirty minutes before the ham has finished cooking,

remove the foil, allowing the drippings to mix with the Coca-Cola to make a

delicious brown gravy.

 Mexico and Iceland have the highest per capita consumption of Coca-Cola.

 Coca-Cola translated to Chinese means, "To make mouth happy".

 Every second over 7,000 Coca-Cola products are consumed.

 The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry Bay is

17 floors, and the plant in Shatin is 25 floors.

 The bottling plant at the highest elevation in the world is located in Bolivia, at 12,000

feet.

 The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a four-azle

trailer.

56
  The best selling non-carbonated soft drink in Japan is a product of The Coca-Cola

Company named "Georgia", a coffee flavored beverage.

 Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German

dirigible.

 The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of serving the

highest volume of Coca-Cola anywhere. It dispenses nearly 3 million servings of

Coca-Cola annually.

 If the Coca-Cola company constructed a sign like the ones McDonald's uses to count

their millions of customers, by 1983 it would have read "over 1 trillion served."

 If all the Coca-Cola ...

o ever produced were in 6 1/2 oz. bottles and placed end to end they

would wrap around the earth more than 11,863 times.

o sold in 1994 were in 8-ounce bottles laid end-to-end, those

bottles would reach to the moon and back 76 times.

o vending machines in the U.S. were stacked one on top of each other,

the pile would be over 450 miles high.

o ever produced were to erupt from "Old Faithful" at its normal rate of

14,000 gallons per hour, the geyser would flow continually for 1,577

years.

o Products sold in 1994 were flowing over Niagara Falls at its normal

rate of 1.5 billion gallons per second, the falls would flow for three

hours.

Ingredients of Coke

57
  Carbonated Water

 High Fructose Corn Syrup

 Caramel Color

 Phosphoric Acid

 Natural Flavors

 Caffeine

Description:

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

business segments, and competitors. It analyzes the business and marketing strategies adopted by the

company, toga in a competitive edge in the industry. The profile also evaluates the strengths of the

company

and the opportunities present in the market.

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

Organizations and corporate advisors.

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

Company Summary

This section presents the key facts & figures, business description, products & services offered and

Corporate timeline of the company.

Company Analysis

It involves analysis of the company at three levels - segments, organizational structure and ownership

composition. Both business and geographic segments are analyzed along with their recent financial

58
performance. It further discusses the major subsidiaries of the company and the recent merger &

acquisitions.

Business Developments

This section examines the significant developments that have taken place in the company. It is form of

news analysis where the most critical company news is discussed.

Discussion of Business Strategies

This section talks about the current and future strategies of the company. All business, marketing,

financial and organizational strategies are discussed here.

SWOT Our SWOT Analysis is a valuable step in assessing your company’s strengths, weaknesses,

opportunities, and threats. It offers powerful insight into the critical issues affecting a business.

Financial Performance

It discusses the most recent financials of the company and also compares the historical sales

& income figures with the current and projected figures. The objective is to evaluate the financial

health of the company. The analyst opinion and stock performance help us in evaluating the

performance of the company from an investor’s viewpoint.

Competition Synopsis

This section compares the company with its peer group. The comparable analysis and stock

movement are aimed at giving an overview of the competitive landscape in the industry and the

company’s positioning in its peer group.

Analysis Soft Drink

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

59
In the soft drink industry the entry of new competitors depends on the barriers to entry that

are present, and also the reaction from existing competitors that the entrant can expect.

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

Economies of scale deter entry by forcing the entrant to come in at large scale and risk strong

reaction from existing firms or come in at a small scale and accept a cost disadvantage. If a

company wants to decline its unit costs of their product, they will have to produce more to

lower the cost. The more you produce, the lower the costs.

In the soft drink industry establishing firms have brand identification and customer loyalties.

The brand name can have differences. This is a high barrier to enter. Entrants are forced to

spend a lot to overcome existing customer loyalties.

Definition of soft drinks

Nonalcoholic beverage

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

does not contain milk or other dairy

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

REVENUE

The Coca-Cola Company North America offices in Sugar Land, Texas, United StatesAccording to the

2005 Annual Report, the company sells beverage products in more than 200 countries. The report

further states that of the more than 50 billion beverage servings of all types consumed worldwide

every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for

approximately 1.5 billion. Of these, beverages bearing the trademark "Coca-Cola" or "Coke"

accounted for approximately 78% of the Company's total gallon sales.

60
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows:

 37% in the United States

 43% in Mexico, Brazil, Japan and the People's Republic of China

 20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top £1 billion in

annual UK grocery sales.

INDUSTRY PROFILE

The company's international blitz began in 1926 when company President Robert Woodruff

signed Coca-Cola as a sponsor of the 1928 Olympic Summer Games in Amsterdam. The U.S.

Olympic Team and 1,000 cases of Coca-Cola arrived at the games by freighter. Since then,

the relationship between the Olympic Games and Coca-Cola has only grown!

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

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

compete.

 1952 -- The Summer Games in Helsinki - Coca-Cola shipped 300,000 cases of bottles

and donated it for sale by the Disabled Ex-servicemen's Association.

 1952 -- The Winter Games in Oslo - The local Coca-Cola bottler chartered a

helicopter for advertising. In 1952 most people had never seen anything like a

helicopter and they were utterly fascinated. At the close of the games, the helicopter

was given to the city to help direct traffic.

61
 1960 -- The Summer Games in Rome - Italian bottlers welcomed athletes, officials

and spectators to Rome with a 45 rpm record of "Arrivederci Roma."

 1964 -- The Summer Games in Tokyo - This marked the first year Coca-Cola aided

the athletes, spectators and media with guide maps, sightseeing information and a

phrase book. The idea was so popular, it was adapted for use in Mexico City, Sapporo

(Japan) and Munich.

 1979 -- The Coca-Cola company worked with the Olympic Committee to create the

U.S. Olympic Hall of fame.

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

chorus. Also, Coca-Cola opened the venue for what would later be deemed the games

number-one spectator sport -- The Coca-Cola Official Olympic Pin Trading Center.

 1996 -- The Summer Games in Atlanta - The Games' centennial, as sole sponsor of

the Olympic Torch Relay, Coca-Cola brought the flame to more than 350 cities and

towns during the 94-day run.

You may know someone who got to run with the flame! I was fortunate enough to

watch the flame's progress through Clark County, Indiana into Louisville, Kentucky. I

even got my picture taken with one of the runners, as I held the torch!! AND I was

there as the flame entered our nation's capital, Washington, D.C. through Fairfax

County, Virginia!

62
  Olympic Commemorative Cans

1928 1948 1964 1992 1996

Amsterdam London Tokyo Barcelona Atlanta

MODERN TRADE

Modern Trade is the process of doing business by utilizing and implementing latest trends in

the business with the help of technology to reach the target customer.

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

successful business.

Modern format retail is witnessing phenomenal growth, driven by the impact of increasing

urbanization, the new well-traveled, knowledgeable Indian consumer and a youth-driven

culture. In its official estimate for the current fiscal ending in March, the government said

that the economy, Asia's fourth largest, was expected to grow at 9.2 per cent.

63
All these factors are rapidly changing the needs and aspirations of consumers. Schedules are

also getting tighter, with the time for professional commitments and regular chores getting

limited. Hence, the "convenience" factor has a major influence on purchase decisions.

Modern trade, the characteristic of which is having everything under one roof and with a

great array of products displayed in an uncluttered fashion where the touch and feel factor

prevails, is providing an environment to access products driven by convenience and fashion.

Evolution of Modern Trade

When we discuss modern trade, the terms large-scale; modern-format and organized are used

rather synonymously in India. However, the three terms need not necessarily mean the same

thing. Large-scale refers to the scale of operation of retail business - which in turn implicitly

refers to a chain of stores. Modern-format basically refers to self-service. However, many of

the self-service stores which call themselves ‘Supermarkets’, are in the range of 500 sq.ft. or

less in size and are nothing more than independent mom-and-pop stores. And organized retail

typically means large-scale chain stores which are corporatized, apply modern-management

techniques and are very likely to be self-service in nature. Most of the estimates of organized

retail market size refer to only large-scale retail. For us modern-retail in this paper means self-

service in both large-scale as well as small-scale. Contrary to the popular view where-in all

credit for growth of modern retail goes to the consumer and their increasing purchasing power,

it is found that consumers manufacturers and retailers – all three – have been impacting the

evolution process.

MODERN TRADE IN INDIA

64
India once again topped the world in the ACNielsen Consumer Confidence Index for the third

time in a row since the index was established in early 2005, with the highest score of 181 in

the last leg of the survey, conducted in November 2009.

Strong economic growth has brought with it new sets of Indian consumers. The booming

young adult population with unprecedented levels of disposable income is more conscious of

the latest trends and fashion. Enhanced media penetration and greater connectivity also are

making consumers more knowledgeable and discerning.

Modern trade is an old saga in India with about 7.8 million retail stores, but most of those are

traditional ones, which only recently started making way for hypermarkets, supermarkets and

specialty stores. Modern trade in India is witnessing tremendous growth, especially in Tier I

cities

It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about 10.7 per

cent of the total FMCG sales. For South Indian metros it touches about 19 per cent, because

modern trade started there a little earlier. There are more than 3,840 modern trade stores in

India now.

IMPACT OF MODERN TRADE ON FMCG

Looking at the kind of consumer patronage a modern trade format store has in terms of an

urban population growing rich, there are a few segments in the FMCG range of products that

have experienced good growth from the modern trade format. In the food segment, processed

food products (23 per cent), impulse food products (32 per cent) and packaged grocery (38

per cent) are the segments that have witnessed immense growth from urban Indian modern

stores.

65
Similarly, in the home and personal care segments it is household cleaning products (38.1 per

cent), fabric care (23 per cent) and categories related to grooming, viz. hair care (28.3 per

cent), fragrances (26 per cent) and skin/body care (23 per cent) that have recorded

considerable growth from urban modern format stores.

An increasing number of working women and nuclear families are some reasons behind the

growth in the food categories. Packaged grocery is a very convenient product for people who

are busy and hence we see it doing so well. Again the young adult population of India is

ambitious and hard working, and has the money to spend on lifestyle. They are brand-

conscious and aware of what their counterparts in the West are wearing and buying

No wonder products related to grooming like like skin care, hair care, and fragrances, or, for

that matter, products like household cleaners are witnessing growth. These consumers

represent the target for manufacturers and retailers, who want to capture a share of the

booming consumer markets in India. Manufacturers, on their part, are investing aggressively

to capture the minds of today's and tomorrow's generations.

With more modern format stores setting up shop in the country we are also witnessing an

expansion in these segments in terms of availability of innovative packaging sizes, product

innovation and overall ranges.

Modern trade and food as a category: Food accounts for about 48 per cent of FMCG sales in

the country and for modern trade the number is even higher, at 51.3 per cent. Like other Asia-

Pacific markets, in India too, among the processed food segments, the breakfast cereals

category is exhibiting a stupendous 40 per cent growth rate. Other growing categories are

biscuits (26 per cent), vermicelli & noodles (28 per cent), beverages (24 per cent) and

ketchup and sauce (29 per cent).

66
Indians have an old fascination for home-cooked food, especially when it comes to lunch and

dinner. With the changed lifestyle, the trend is changing and people have started showing

interest in ready-to-cook foods. However, even today a majority of these consumers are

willing to restrict the experiment to packaged foods and accompaniments meant for breakfast

and snack time.

Chocolates (28 per cent) and namkeens (37 per cent) are two major categories of impulse

food products showing good growth, along with packaged rice (92 per cent) in the packaged

grocery segment.

Modern trade and home and personal care products (H&PC): As far as H&PC is concerned,

from modern trade it has witnessed a growth rate of about 23 per cent, which is at par with

the overall growth. Modern trade brings with it a great shopping experience, with good

product displays, making selection far easier.

Under household cleaners it is floor cleaners (88 per cent) and toilet cleaners (37 per cent)

that are growing well; in hair care, it is hair conditioners (43 per cent) and hair oil (35 per

cent), and for the skin care segment, it is skin creams (35 per cent) that are driving the H&PC

sales in modern stores.

With the overall economy doing well and basic necessities mostly taken care of, people are

now more keen to look and feel good and are ready to devote time and money on that. Unlike

in the past, when there was one product used for all household cleaning, people now are

willing to experiment with specific products meant for cleaning glasses, utensils, floors, etc.

THE emergence of modern trade (or organized retail) is currently the biggest challenge

facing FMCG manufacturers, who could see increasing pressure on sales margins as a result.

67
Citing as an example the situation in the US where retailer Wal-Mart is much bigger than any

of the FMCG companies, he said such a scale would give modern trade the power to

negotiate. "Today, I give 13 per cent (margin). Modern trade won't settle for anything less

than 20 per cent," he said, addressing students of the ICFAI Business School as part of a BL

Club lecture.

68
 CHAPTER IV

DATA ANALYSIS & INTERPRETATION

69
Table-2

CLASSIFICATIO ON THE BASIS OF GENDER

SL.NO GENDER PERCENTAGE

1 Male 46 %

2 Female 54 %

PERCENTAGE

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

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

male and 54 % are females.

70
TABLE-3

CLASSIFICATION ON THE BASIS OF AGE

SL.NO AGE OF RESPONDENTS PERCENTAGE

1 15-20 64 %

2 21-25 10 %

3 26-30 14 %

4 30-35 12%

PERCENTAGE

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

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

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

71
TABLE-4

PRESENT CONSUMER OF SOFT DRINKS

SL.NO RESPONSE PERCENTAGE

1 YES 100 %

2 NO 0%

PERCENTAGE

1 YES
2 NO

100%

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

using soft drinks.

72
TABLE-5

SHOWING THE PROMOTIONAL STRATEGIES OF SOFT DRINKS

SL.NO BRANDS OF SOFT DRINKS PERCENTAGE

1 Coco-cola 14 %

2 Pepsi-cola 12 %

3 Sprite 38 %

4 Fanta 10 %

5 Others 26 %

PERCENTAGE

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

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

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

brand.

73
TABLE-6

SHOWING THE SOURCE INFORMATION REGARDING SOFT DRINKS

SL.NO SOURCE OF INFORMATION PERCENTAGE

1 Media advertisement 52 %

2 Internet 10 %

3 Friends 16 %

4 News papers and magazines 10 %

5 others 12 %

PERCENTAGE

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

INTERPRETATION: 52% of respondents get awareness through media

advertisement and 10 % get awareness through internet, 16 % friends, 10

percentages get from news paper and magazines. 12 % get other sources like

relatives, family, etc. .

74
TABLE-7

SHOWING THE CONSUMERS USING THE ABOVE STATED BRAND

SL.NO NUMBER OF YEARS PERCENTAGE

1 Last 5 months 14 %

2 1 year 12 %

3 1-2 years 24%

4 More than 2 50 %

PERCENTAGE

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

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

years, 24 % suing the stated between the periods of 1 to 2 years. 14 % of

customers are using the particular brand for last five months.

75
TABLE-8

SHOWING CONSUMER INFLUENCE TOWARDS ADVERTISEMENT

SL.N INFLUENCE OF ADVERTISEMENT PERCENTAGE

1 Yes 70 %

2 No 30%

PERCENTAGE

30%
1 Yes
2 No

70%

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

influenced by advertisement.

76
TABLE-9

SHOWING THE CONSUMERS’ OPINION OF THE BRANDS

SL.NO BRAND PERCENTAGE

1 Excellent 18 %

2 Good 62  %

3 No opinion 20 %

4 Bad 0%

5 Poor 0%

PERCENTAGE 18% 62  %

3 No opinion
4 Bad
5 Poor

20%

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

The other 62 % are says that their brands are good. The remaining 20 % of

77
respondents do not have any opinion about their brand. Nobody says that the

brands that they preferred are bad or poor.

TABLE-10

SHOWING THE MOST COMMON PLACE FOR PURCHASE

SL.NO COMMON PLACE WEIGHTED

AVERAGE

1 Convenience 4.56

2 Grocery 3.58

3 Stores 4.94

4 Wholesale warehouse 2.98

5 Restaurants 3.62

6 others 1.40

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

INTERPRETATION:  The above table shows that majority of respondents of

purchase soft drinks from convenience stores and stores and its weighted

average ( 4.56). Others purchase soft drinks from restaurants grocery etc.

78
Minority of respondents purchase soft drinks from wholesale warehouse and

other sources.

TABLE-11

SHOWING THE PURPOSE OF USING SOFT DRINKS AMONG

CONSUMERS

SL.N PURPOSE PERCENTAGE

1 Taste 14 %

2 Caffeine 6%

3 Refreshment 68%

4 Brand loyalty 6%

5 Others 6%

PERCENTAGE

1 Taste
2 Caffeine
3 Refreshment
4 Brand loyalty
5 Others

79
INTERPRETATION:  68% of respondents are using soft drinks for

refreshments. 14% are for taste. Remaining customers give importance to

caffeine, brand loyalty and other reasons. 

TABLE-12

SHOWING PROMOTIONAL STRATEGIESTOWARDS CHANGING THE

BRAND

SL.NO OPINION PERCENTAGE

1 Yes 36%

2 No 64%

PERCENTAGE

1 Yes
2 No

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

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

80
TABLE-13

SHOWING THE PRICE OF CONSUMERS FAVOURITE BRAND IS

REDUCED, WILL YOU BUY MORE OF IT

SL.NO OPINION PERCENTAGE

1 Yes 28%

2 No 72%

PERCENTAGE

1 Yes
2 No

81
INTERPRETATION:  28% of respondents buy more soft drinks, when the

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

is reduced.

TABLE-14

SHOWING PROMOTIONAL STRATEGIES IS NOT AVAILABLE FOR

PURCHASE WHAT WILL THEY DO

SL.NO OPINION PERCENTAGE

1 Post pone purchase 14%

2 Switch once to other brand 32%

3 Go to other shop 42%

4 Search for your preferred brand 12%

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 PERCENTAGE

1 Post pone purchase

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

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

drinks not available for purchase. At this situation 32% respondents switch over

to other brand. 42 % respondents go to other shops. Remaining 12 %

respondents search for their preferred brand.

TABLE-15

SHOWING OTHER PRODUCT OF THE SOFT DRINK APPEAR IN THE

MARKET WILL CONSUMER PREFER TO SHOP BUYING THIS BRAND

AND NEW BRAND

SL NO OPINION PERCENTAGE

1 Not at all 14%

2 I may consider 48%

3 Yes 4%

4 Can’t say 34%

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 PERCENTAGE

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

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

soft drinks which appeared in the market. 48% of respondents will consider the

other product of soft drinks. 34% respondents can’t say anything about this

situation. Remaining 4% will buy the other product of soft drink.

TABLE-16

SHOWING THE MOST FACTORS WHICH AFFECT THE BUYING

DECISION

SL.NO FACTORS WEIGHTED

AVERAGE

1 Quality and taste 6.56

2 Packaging 4.46

3 Celebrities 3.82

4 Price 4.44

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5 Recommendations from 4.46

friends and relatives

6 Medias 2.92

7 Others 1.34

WEIGHTED AVERAGE

1 Quality and taste

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

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

with a weighted average of 6.56. Whereas second preference is give to

packaging (W.A-4.46), price (4.44), recommendations from friends and

relatives (4.46) and the least preference is given to medias (2.92).

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TABLE-17

SHOWING THE COMSUMER PAY THE QUANDITY DO PREFER

BUYING A PRODUCT

SL.NO QUANDITY PERCENTAGE

1 100ml-250ml 16%

2 250ml-500ml 42%

3 1 liter 32%

4         More than 1liter 10%

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 PERCENTAGE

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

INTERPRETATION:  The table showing the consumers preference quantity

for purchasing soft drinks. Majority of the respondents belongs 250ml-500ml.

32% choose the option 1 litre. 16% prefer 100ml-250ml and only 10% prefer

more than 1 litre.

TABLE-18

SHOWING THE SATISFACTION LEVEL OF CONSUMERS

SL.NO ITEMS WEIGHTED

AVERAGE

1 Price 3.70

2 Quality 3.82

3 Flavour and taste 3.86

4 Packaging 3.76

5 Brand 3.84

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 6 Advertisement frequency 3.56

7 Availability 3.72

8 Colour 3.22

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

INTERPRETATION: The above table shows that respondents are satisfied

with price, quality, flavour and taste, packaging, brand, advertisement

frequency, colour and availability of soft drinks as their weighted average

(<3.5).

TABLE-19

STUDY THE CONSUMER VEIW OF SOFT DRINKS

SL.NO VIEW PERCENTAGE

1 As a health drink 10%

2 As an aid to put off thirst 68%

3 As a status symbol 12%

4 Other 10%

88
 PERCENTAGE

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

INTERPRETATION: The above table shows the views of consumer about

soft drinks. 68% choose the option as an aid to put off thirst. 12% of

respondents view is as status symbol. 10% view is as a health drink.

CHAPTER 5

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 FINDINGS, SUGGESTIONS AND

CONCLUSION

FINDINGS

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

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

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

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

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

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

·        Age between 15 to 20 prefer to buy more

·        In this survey major respondents are female

·        Majority of the consumers opinion of the brand is good

·        Majority of the consumers are satisfied with flavour and taste

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

SUGGESTIONS

 Consumption of soft drinks are not good for health. There are so many

health problems related with consumption of soft drinks. The major

findings from this study, youth is the major consumers of soft drink

product.

 Youth should:

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  Reduce their consumption of regular sports drink, soda or pop and other

sugar – sweetened beverages.

 Increase their consumption of water and low fat or fat milk

 Reduce youth’s access to sugar- sweetened beverages to decease

consumption.   

 Encourage adolescents to drink water and low fat- free milk, or limited

amounts of 100% fruit juices, as an option.

CONCLUSION

As stated in the objectives, this study is aimed at studying the b rand pretence and factors

influencing young consumers of packaged soft drinks. The major part of the soft drink

consumers are in 15-20 age groups. The most preferred brand is Sprite and second position to

others. The consumption of soft drinks products increase comparing with previous times. The

changing living pattern and life style of the peoples are changed a lot so soft drinks where

common preference among all the individuals with the change in life style and income level,

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peoples are shifting their consumption patterns. The competition between the brands lead to a

high influence in Promotional strategies of the consumers because their marketing strategy.

The quality and taste are influencing in consumer purchasing decisions. One of the major

influencing medium of purchasing soft drink product is media advertisements. Major part of

the consumer view about soft drink is as an aid to put off thirst. Another part of the consumer

believe soft drink as a status symbol.

The nature oif soft drink markets are oligopoly .i.e.  oligopoly is a market dominated by a few

large suppliers the degree of market concentration is very high (i.e a large % of the market is

taken up by the leading firms) . Firms with in an oligopoly produce branded products

(advertising and marketing is a important feature of competition with in such markets) and

there are also barriers to entry.

Soft drink consumption is no good for health there are so many disease incur through soft

drink consumption but our changes in life styles soft drinks consumption is an important

product item in modern society both urban and rural and becoming more popular in the

consumer world. At present soft drink market is one of the most competitive markets in the

world.  

BIBLIOGRAPHY

Books:

1. Martin, D. C. & Bartol, K. M. (2003). Marketing of Beverages: Maintaining system

effectiveness, 27(2), 223-230.

2. Parker, R. & Kent, J. (2001). Soft Drink Industries: Criteria and observations, 754-771.

93
Websites:

1. http://www.pepsi india coorporation.com/corporate_profile.html (last accessed on 7th

March 2013)

2. http://www.scribd.com/pepsicola -co/ (last accessed on 8th March 2013)

3. http://seminarprojects.com/Soft Drinks-performance-appraisal (last accessed on 8th March

2013)

4. http://www.famousbusiness.org/docrep/w7505e/w7505e06.htm (last accessed on 10th

March 2013)

5. http://www.coca cola corporation.com (last accessed on 11th March 2013)

6. http://www.managementstudyguide.com/soft drink -appraisal.htm (last accessed on 15th

March 2013)

7. http://en.wikipedia.org/wiki/Coca Cola.org (last accessed on 16th March 2013)

APPENDIX

A STUDY ON PROMOTIONAL STRATEGIES OF SOFT DRINKS AMONG YOUTH

1. Name:                           

2. Gender:  Male                Female   

3.

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

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 4. Do you drink soft drinks?         Yes                 No

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

Coca –cola            Pepsi-cola            Sprite                

Fanta              Others  

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

Media advertisement             Internet           

Friends              Newspaper & magazines              Others

7. How long you have been using the above stated brand?

Last 5 months             1year              1 to 2 year             

more than 2

8. Do you think advertising influence you to drink soft drinks?

 Yes             No

9. What is your opinion of the brand?

Excellent             Good            No

opinion            Bad             Poor(

10. Where is the most common place that you purchase soft drinks? (put ranks)

Convenience stores           

Grocery             Stores            Wholesale ware house           Restaurants              Others

(specify):

11. Why do you drink soft drinks?

Taste            Caffeine          

Refreshment            Brand loyalty            Others

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

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

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 Yes             No

14. If your preferred brand is not available for purchase what will you do?

Post pone purchase            Switch over to other

brand            Go to other shop           Search for your preferred brand

15. If another product of the soft drink appears  in the market will you prefer to stop

buying this brand & buy new brand?

Not at all            I may consider            Yes            Can’t say

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

Quality & taste           Packaging            Celebrities             Price            

Recommendation from

Friends & relatives               Medias             Others(specify)

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

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

litre            more than 1 litre

18. Rate the level of influence of following factors on your purchase decision (tick the

desired column)

items Very high High Average Low Very low

Price

Quality

Flavour

&taste

Packaging

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 Brand

Advertisemen

t frequently

Availability

Colour

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

Highly satisfied            Satisfied             No

opinion           Dissatisfied             Highly dissatisfied

20. How do you view soft drinks?

As a health drink               As an aid to put off

thirst             As a status symbol             Any other (specify)

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

97