Internship Report

ON

COCA-COLA COMPANY (Marketing)

SUBMITTED BY: Prateek Singh

SUBMITTED TO: AdarshArora

CONTENT
EXECUTIVE SUMMARY INTRODUCTION

EXECUTIVE SUMMARY This report has been prepared with a specific purpose in mind. It outlines thehistory and current scenario of the Coca-Cola Company globally and locally.The first part of the study takes us through the present state of affairs of thebeverage industry and Coca-Cola Company globally.The report contains a brief introduction of Coca Cola Company and Coca-ColaIndia and a detailed view of the tasks, which have been undertaken to analyze the market of Coca-Cola i.e. we have performed Competitive, PESTLE andSWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis ofCoca-Cola India in order to identify areas of potential growth for Coca-Cola.We have also given a brief description of Trends and Forces that are affectingCoca-Cola Company globally.The main objective of this project report is to analyze and study in efficient waythe current position of Coca- Cola Company. The study also aims to performMarket Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola. Another objective of the study was to performCompetitive analysis between Coca-Cola and its competitors. Apart from theseobjectives this study is also conducted to understand the Customer preferencestowards various Coca-Cola products.

INTRODUCTION Let reason go before every enterprise, and counsel before every actionResearch is a human activity based on intellectual investigation and is aimed at discovering, interpreting, and revising human knowledge on different aspects ofthe world.MARKETING RESEARCH:-Marketing research is the function that links the consumer, customer and publicto the marketer through information used to identify and define marketingopportunities and problems; generate, refine, and evaluate marketing actions;monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address theseissues, designs the methods for collecting information, manages and implementsthe data collection process, analyses and communicates the findings and theirimplications. -American Marketing AssociationMarketing research is about researching the whole companys marketingprocess.

INTRODUCTION TO COCA-COLA:- Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketerand distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly400 beverage brands. It sells beverage concentrates and syrups to bottling and canningoperators, distributors, fountain retailers and fountain wholesalers. The Companys beverageproducts comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sportsdrinks, tea and coffee. The Coca- Cola Company began building its global network in the1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale Provide a moment of refreshment for a small amount of money- a billion times a day.The Coca-Cola Company and its network of bottlers comprise the most sophisticated andpervasive production and distribution system in the world. More than anything, that system isdedicated to people working long and hard to sell the products manufactured by theCompany. This unique worldwide system has made The Coca-Cola Company the worldspremier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, CocaCola,more than any other consumer product, has brought pleasure to thirsty consumers around theglobe. For more than 115 years, Coca-Cola has created a special moment of pleasure forhundreds of millions of people every day.The Company aims at increasing shareowner value over time. It accomplishes this byworking with its business partners to deliver satisfaction and value to consumers through aworldwide system of superior brands and services, thus increasing brand equity on a globalbasis. They aim at managing their business well with people who are strongly committed tothe Company values and culture and providing an appropriately controlled environment, tomeet business goals and objectives. The associates of this Company jointly takeresponsibility to ensure compliance with the framework of policies and protect theCompanys assets and resources whilst limiting business risks

INDUSTRY PROFILE INDUSTRY PROFILE A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)are products that have a quick turnover and relatively low cost. Consumers generally put lessthought into the purchase of FMCG than they do for other products.The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers personal consumption. The realization of the customers growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organizedretailingsector.HLL led the way in revolutionizing

the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike someindustries, such as automobiles, computers, and airlines, FMCG does not suffer from masslayoffs every time the economy starts to dip. A person may put off buying a car but he willnot put off having his dinnerunlike other economy sectors, FMCG share float in a steady manner irrespective of globalmarket dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the IndianEconomy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, isthe South Indian region. It is predicted that in the year 2010, the FMCG sector will be worthRs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides upto 4 million jobs. (Source: HCCBPL, Monthly Circular)

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA In India, beverages form an important part of the lives of people. It is an industry, in whichthe players constantly innovate, in order to come up with better products to gain moreconsumers and satisfy the existing consumers. BEVERAGES NON- ALCOHOLIC ALCOHOLIC NON- CARBONATED CARBONATED COLA NON-COLA BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Alcoholic,non-alcoholic and sports beverages.

-home consumption and out of home on premises consumption. for senior citizens. amount of consumption i.e. high levels of consumption and low levels of consumption. If the behavioural patterns of consumers in India are closely noticed, it could be observedthat consumers perceive beverages in two different ways i.e. beverages are a luxury and thatbeverages have to be consumed occasionally. These two perceptions are the biggestchallenges faced by the beverage industry. In order to

leverage the beverage industry, it isimportant to address this issue so as to encourage regular consumption as well as and to make the industry more affordable .Four strong strategic elements to increase consumption of the products of the beverageindustry in India are: enhanced so that consumers are satisfied and they enjoy consuming beverages. uilt so that there is a very strong and safe feeling that the consumers have while consuming the beverages. consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. consumers are able to find an appeal to go out, purchase and consume. and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.

COMPANY PROFILE
COMPANY PROFILEMISSION: Our Roadmap starts with our mission, which is enduring. It declares our purpose as acompany and serves as the standard against which we weigh our actions and decisions. the world ts of optimism and happiness eate value and make a difference. VISION: Our vision serves as the framework for our Roadmap and guides every aspect of our businessby describing what we need to accomplish in order to continue achieving sustainable, qualitygrowth. be the best they can be. brands that anticipate and satisfy peoples desires and needs. suppliers, together we create mutual, enduring value. helping build and support sustainable communities. -term return to shareowners while being mindful of our overall responsibilities. -moving organization.

WINNING CULTURE: Our Winning Culture defines the attitudes and behaviours that will be required of us to makeour 2020 Vision a reality. LIVE OUR VALUES: Our values serve as a compass for our actions and describe how we behave in the world.

Accountability: If it is to be, its up to me.

FOCUS ON THE MARKET: partners.

WORK SMART:

change course when needed.

ACT LIKE OWNERS:

tter ways to solve problems. -- what worked and what didnt. BE THE BRAND: Inspire creativity passion optimism fun.

HISTORY OF COCA-COLA
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, adrugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pembertons French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European cocawine In 1886, when Atlanta and Fulton County passed prohibition legislation, Pembertonresponded by developing Coca-Cola, essentially a nonalcoholic version of French WineCoca. The first sales were at Jacobs Pharmacy in Atlanta, Georgia, on May 8, 1886. It wasinitially sold as a patent medicine for five cents a glass at soda fountains, which were popularin the United States at the time due to the belief that carbonated water was good for thehealth.[9] Pemberton claimed Coca-Cola cured many diseases, including morphine addiction,dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement forthe beverage on May 29 of the same year in the Atlanta Journal. By 1888, three versions of Coca-Cola sold by three separate businesses were on themarket. As a Griggs Candler acquired a stake in Pembertons Company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pembertons alcoholic son Charley Pemberton began selling his own version of the product.John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other twomanufacturers could continue to use the formula. So, in the summer of 1888, Candler sold hisbeverage under the names Yum Yum and Koke. After both failed to catch on, Candler set outto establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors outof the business. Candler purchased

exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim hersignature on the bill of sale had been forged, and subsequent analysis has indicated John Pembertons signature was most likely a forgery as well.In 1892 Candler incorporated a second company, The Coca-Cola Company (the currentcorporation), and in 1910 Candler had the earliest records of the company burned, furtherobscuring its legal origins. By the time of its 50th anniversary, the drink had reached thestatus of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen,after the company made minor changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor walladvertisement was painted in the same year as well in Cartersville, Georgia. Cans of Cokefirst appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirtdesign that is now so familiar. Asa Candler was tentative about bottling the drink, but twoentrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead,proposed the idea and were so persuasive that Candler signed a contract giving them controlof the procedure for only one dollar. Candler never collected his dollar, but in 1899Chattanooga became the site of the first Coca-Cola bottling company. The loosely termedcontract proved to be problematic for the company for decades to come. Legal matters werenot helped by the decision of the bottlers to subcontract to other companies, effectivelybecoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately atpharmacies in small quantities, as an over-thecounter remedy for nausea or mildly upsetstomach.On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the

formula of thedrink with "New Coke". Follow-up taste tests revealed that most consumers preferred thetaste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared forthe publics nostalgia for the old drink, leading to a backlash. The company gave in toprotests and returned to a variation of the old formula, under the name Coca-Cola Classic onJuly 10, 1985.On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose,the same sweetener currently used in Pepsi One. On March 21, 2005, it announced anotherdiet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfamepotassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitaminsB6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus. On July 5, 2005, it wasrevealed that Coca-Cola would resume operations in Iraq for the first time since the ArabLeague boycotted the company in 1968.In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola. The word "Classic" was truncated because "New Coke" was no longer in production,eliminating the need to differentiate between the two. The formula remained unchanged.In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16ouncebottles sold in parts of the southeastern United States. The change is part of a larger strategyto rejuvenate the products image. In November 2009, due to a dispute over wholesale pricesof Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.

GLOBAL MARKET SHARE OF COCA-COLA In 2009, the company generated revenues of $31 billion with $6.8 billion net income. Anincreased consumer preference for healthier drinks has resulted in slowing growth rates forsales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KOs sales.KOs profits are also vulnerable to the volatile costs for the raw materials used to makedrinks - such as the corn syrup used as a sweetener, the aluminium used in cans, and theplastic used in bottles. Furthermore, slowing consumer spending in Cokes large NorthAmerican market compounds the challenge of increasing costs and a weak economicenvironment. Finally, Coca-Cola earns approximately 75% of revenue from internationalsales, exposing it to currency fluctuations, which are particularly adverse with a stronger U.S.Dollar (USD).Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market isgrowing quickly, the traditional CSD market is still large in terms of both revenues andvolume and highly lucrative. The size and variety of KOs offerings in the CSD category,coupled with the unparalleled brand equity of the CocaCola trademark, has allowed KO tomaintain its share of this important market. KO has also responded to consumerschangingtastes with new, non-CSD product launches and acquisitions such as that of Glaceau in 2007.Strong international growth has also more than offset a weak domestic market.On February 25, Coca-Cola Company announced its plan to buy Coca-Cola Enterprises(CCE) for $12.3 million.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, thesoft drink market has changed dramatically with consumers buying fewer soft drinks andmore non-carbonated beverages, such as Powerade and Dasani water. Under the new deal,Coca-Cola Company will take control of the bottlers North America operations, giving thecompany control over 90% of the total

North America volume. In return, Coca-ColaEnterprises will take over Cokes bottling operations in Norway and Sweden, becoming aEuropean-focused producer and distributor.In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice company, OAO Nidan Juices. The company is 75% owned by a private equity firm inLondon and 25% by its Russian founders and controls 14.5% of the Russian juice market. Ifsuccessful, the purchase would add to Coca-Colas 20.5% market share, passing Pepsis 30%market share. The Russian juice market is estimated to be $3.2 billion dollars, and estimates of Nidans purchase price are between $560-$620 million.In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit smoothie maker. Last year the company bought an 18% share of the company for more than$45 million, and recent purchases of additional shares increased Cokes stake to 58%.In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715million for the continued right to sell their products following the companys acquisition of Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew foran additional 20 years.

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

begun to increase its development of both diet CSD and non-CSD beverages. KO isfaced with the task of balancing the risk of new innovations with the low growth rates ofestablished brands, a predicament for manufactures throughout the beverage industry. -After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flaggingbeverage maker, one of the first areas that he targeted for improvement was KOs frayedrelations with its extensive network of bottlers. Since consolidating all companyownedbottlers into the Bottling Investments division, Isdell has continued to increase KOs interestin its bottlers through stake purchases or outright buyouts. This strategy represents awakening of the division between KOs production and distribution operations. Isdellbelieves that by combining production and distribution operations the company will haveenhanced its ability to quickly respond to changing market conditions. In KOs 2007 Q3Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI)for double-digit volume growth in that country. Additionally, KO has signed new agreementswith many of its bottlers which allow them to distribute drinks produced by other companies.For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a readyto-drink teamade by Ferolito, Vultaggio& Sons, an American iced-tea company. Isdell sees these agreements as another way of taking advantage of the rapidly growing non-CSD market. bottled waters revenues fell by double digits; this decrease is emblematicof the bottled water industry as a whole. In August 2009, the Wall Street Journal reported thatsales of bottled water had fallen for the first time in five years. The combination of therecession and upper class consumers increased environmental consciousness has lead many customers to cut back on bottled

water in favour of tap water and reusable containers.Following this trend, at least one town in Washington state and one in Australia haveoutlawed the selling of bottled water within their city limits. In 2008, bottled water was thethird most popular beverage (behind soda and milk), but compared to 2007, Americansconsumption declined for the first time, down to 8.7 billion gallons from 8.8 billion gallons.Although this is a seemingly small decrease, industry expertsdont expect bottled water tobounce back anytime soon. affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Althoughthe company is based in the US, KO derives about 75% of its operating income from outsideUnited States. Because of this, the company is very sensitive to the strength of the dollar. Asforeign currencies weaken relative to the dollar, goods sold in foreign markets are suddenlyworth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as itdid in the second half of 2008 and 2009), it has a negative effect on KOs earnings. Coca-Cola executives expect currency fluctuations to adversely affect 3Q09 operating income by10-12% and 4Q09 operating income by high single digits.KO has broad exposure to foreign currencies and actively hedges a large portion of these to avoid wide swings in earnings from currency fluctuations. Although this hedging insulatesfrom the potential downside of a strengthening dollar, it also limits larger gains from drasticdownswings in the dollars value. -Cola Companys profitability can be affected both directly and indirectly by thecosts of various production inputs. KO itself is responsible for purchasing the raw materialsused to make its concentrates and syrups. Variations in the prices for these goods can affectthe companys total cost of production as well as its

profit margins. Changes in theproduction costs of bottlers can also impact KOs profitability, though in a more indirect way.If the raw materials necessary for bottling become more expensive, the bottler may be forcedto drastically raise prices to compensate.Such a price increase would likely hurt KO, given the competitive nature of the non-alcoholicbeverage industry, and provide a possible incentive for consumers to switch to othercompanies beverages.Aluminium, corn, and PET resin are three examples of such production goods used bybottlers that could have significant bearing on the Coca-Cola Companys profit margins. In2007, the prices of these commodities rose drastically with general commodities bubble and ramatically pressured margins. They receded in 2008, but the possibility of anothersignificant rise in Commodities represents a constant threat to profits.

POTERS FIVE FORCES competition that Coca-cola faces is from the rival sellers within the industry.Coca-Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in thisindustry, and they are all globally established which creates a great amount of competition.Aside from these major players, smaller companies such as Cott Corporation and National Beverage Company make up the remaining market share. All five of these companies make aportion of their profits outside of the United StatesThough CocaCola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta,and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca-Cola has higher sales in the global market than PepsiCo, PepsiCo is the main competitor forCoca-Cola and these two brands have been in a power struggle for years (Murray, 2006c).Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi witha market share of 21%.According to Beverage Digests 2008 report on carbonated soft drinks, PepsiCos U.S. marketshare has increased to 30.8%, while the Coca-Cola Companys has decreased to 42.7% due toPepsi marketing schemes still the higher large gap between the market share can be attributedto the fact that CocaCola took advantage of Pepsi entering the market late and has set up itsbottlers and distribution network especially in developed markets."The Coca-Cola Company" is the largest soft drink company in the world. Every year800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plantswith some exceptions are locally owned and operated by independent business people whoare native to the nations in which they are located. Coca-Cola manufactures, distributes andmarkets non-alcoholic beverage concentrates and syrups,

including fountain syrups.It supplies concentrates and beverage bases used to make the products and providesmanagement assistance to help its bottlers ensure the profitable growth of their business.This has put Pepsi at a significant disadvantage compared to US market. Overall,Coca-Colacontinues to outsell Pepsi in almost all areas of the world. However, exceptions include India,Saudi Arabia and Pakistan.By most accounts, CocaCola was Indias leading soft drink until 1977 when it left India aftera new government ordered, The Coca-Cola Company to turn over its secret formula for Cokeand dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act(FERA).In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjabgovernment-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brandswas allowed. PepsiCo bought out its partners and ended the joint venture in 1994. In 1993,The CocaCola Company returned in pursuance of Indias Liberalization policy. In 2005, TheCoca-Cola Company and PepsiCo together held 95% market share of soft-drink sales inIndia. Coca-Cola Indias market share was 52.5%.In Russia, Pepsi initially had a larger market share than Coke but it was undercut once theCold War ended. In 1972, Pepsi Co Company struck a barter agreement with the governmentof the Soviet Union, in which Pepsi Co was granted exportation and Western marketingrights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola.This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in theU.S.S.R. Pepsi, as one of the first American products in the Soviet Union, became a symbolof that relationship and the Soviet policy.Brand name loyalty is another competitive pressure. The Brand Keys Customer LoyaltyLeaders Survey (2004) shows the brands with the greatest customer loyalty in all industries.Diet Pepsi ranked

17th and Diet Coke ranked 36th as having the most loyal customers to theirbrands. The new competition between rival sellers is to create new varieties of soft drinks,such as vanilla and cherry, in order to increase sales and getting new customers.Pepsi is however trying to counter this by competing more aggressively in the emergingeconomies where the dominance of Coke is not as pronounced, with the growth in emergingmarkets significantly expected to exceed the developed markets, rivalry in internationalmarket is going to be more pronounced.Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supportingPepsis positioning as "The Choice of a New Generation." In 1975, Pepsi began showingpeople doing blind taste tests called Pepsi Challenge in which they preferred one product overthe other. Pepsi started hiring more popular spokespersons to promote their products.In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars,Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points onbillions of packages and cups. They could redeem the points for free Pepsi lifestylemerchandise. After researching and testing the program for over two years to ensure that itresonated with consumers, Pepsi launched Pepsi Stuff, which was an instant success.Tens of millions consumers participated. Pepsi outperformed Coke during the summer of theAtlanta Olympics, held at Cokes hometown where Coke was the lead sponsor for the Games.Due to its success, the program was expanded to include Mountain Dew into Pepsisinternational markets worldwide. The company continued to run the program for many years,continually innovating with new features each year.Coca-Cola and Pepsi engaged in a "cyber-war" with the reintroduction of Pepsi Stuff in 2005& Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with PepsiStuff ending its services and Coke Rewards still offering prizes on their website. Both wereloyalty programs that give away prizes and

product to consumers after collecting bottle capsand 12 or 24 pack box tops, then submitting codes online for a certain number of points.However, Pepsis online partnership with Amazon allowed consumers to buy variousproducts with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and cokepreviously had a partnership with the iTunes Store trants are not a strong competitive pressure for the soft drink industry. Coca-Cola andPepsi Co dominate the industry with their strong brand name and great distribution channels.In addition, the soft-drink industry is fully saturated and growth is small. This makes it verydifficult for new, unknown entrants to start competing against the existing firms.Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, andeconomies of scale. New entrants cannot compete in price without economies of scale. Thesehigh capital requirements and market saturation make it extremely difficult for companies toenter the soft drink industry therefore new entrants are not a strong competitive force. Capital requirements for producing, promoting, and establishing a new soft drinktraditionally have been viewed as extremely high. According to industry experts, this makesthe likelihood of potential entry by new players quite low, except perhaps in much localizedsituations that matter little to Coke or Pepsi. Yet, while this view may reflect conventionalwisdom, some industry observers question whether a new time is coming, with new agebeverages selling to well-informed and health-informed and health-conscious consumers.This issue was beginning to grab the attention of both Coke and Pepsi in the summer of1992, when they both were not able to explain a drop in their June 1992 sales. substitutes for soft drinks. Citrus beverages and fruitjuices are the more popular substitutes. Availability of shelf space in retail

stores as well asadvertising and promotion traditionally has had a significant effect on beverage purchasingbehaviour. Overall total liquid consumption in the United States in 1991 included CocaColas 10% share of all liquid consumption.For years the story in the non-alcoholic sector centred on the power struggle between Cokeand Pepsi. But as the pop fight has topped out, the industrys giants have begun relying onnew product flavours and looking to noncarbonated beverages for growthSubstitute products are those competitors that are not in the soft drink industry. Suchsubstitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices etc.Bottled water and sports drinks are increasingly popular with the trend to be a more healthconscious consumer. There are progressively more varieties in the water and sports drinksthat appeal to different consumers tastes, but also appear healthier than soft drinks.In addition, coffee and tea are competitive substitutes because they provide caffeine. Theconsumers who purchase a lot of soft drinks may substitute coffee if they want to keep thecaffeine and lose the sugar and carbonation.Blended coffees are also becoming popular with the increasing number of Starbucks, Baristaand CCD stores that offer many different flavours to appeal to all consumer markets. It is alsocheap for consumers to switch to these substitutes making the threat of substitute productsvery strong (Datamonitor, 2005).The growth rate has been recently criticized due to the market saturation of soft drinks.Datamonitor (2005) stated, Looking ahead, despite solid growth in consumption, the globalsoft drinks market is expected to slightly decelerate, reflecting stagnation of market prices.The change attributed to the other growing sectors of the non-alcoholic industry including tea& coffee is 11.8% and bottled water is 9.3%. Sports drinks and energy drinks are alsoexpected to increase in growth as competitors start adopting new product lines.Profitability in the soft drink industry will remain rather solid, but market

saturation hascaused analysts to suspect a slight deceleration of growth in the industry (2005). Because ofthis, soft drink leaders are establishing themselves in alternative markets such as the snack,confections, bottled water, and sports drinks industries.In order for soft drink companies to continue to grow and increase profits they will need todiversify their product offerings. So in order to compete with the substitutes industry, coca-cola has diversified from just carbonated drink industry to other substitute and so have other brands like Pepsi, Dr pepper/Snapple. are the ultimate buyers of soft drinks. However, Coke and Pepsis realbuyers have been local bottlers who are franchised -or are owned, especially in the case ofCoke- to bottle the companies products and to whom each company sells its patented syrupsor concentrates. While Coke and Pepsi issue their franchise, these bottlers are in effect theconduit through which these international cola brands get to local consumersThrough the early 1980s, Cokes domestic bottlers were typically independent familybusinesses deriving from franchises issued early in the century. Pepsi had a collection ofsimilar franchises, plus a few large franchisees that owned many locations. Until 1980, Cokeand Pepsi were somewhat restricted in owning bottling facilities, which was viewed as arestraint of free trade. Jimmy Carter, a Coke fan, changed that by signing legislation to allowsoft-drink companies to own bottling companies or territories, plus upholding the territorialintegrity of soft-drink franchises, shortly before he left office.Also, the three most important channels for soft drinks are supermarkets, fountain sales, andvending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink industrysales, fountain sales represented about 25%, and vending accounted for approximately 13%.Other retailers represent the remaining

percentage. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network ofbottling companies, Coca-Cola uses its own network of wholesalers for their fountain syrupdistribution, and Pepsi distributes its fountain syrup through its principal raw material used by the soft-drink industry in the United States is highfructose corn syrup, a form of sugar, which is available from numerous domestic sources.The principal raw material used by the soft-drink industry outside the United States issucrose. It likewise is available from numerous sources.Another raw material increasingly used by the soft-drink industry is aspartame, a sweeteningagent used in low-calorie soft-drink products. Until January 1993, aspartame was availablefrom just one source -the NutraSweet Company, a subsidiary of the Monsanto Company- inthe United States due to its patent, which expired at the end of 1992.Coke managers have long held power over sugar suppliers. They view the recently expiredaspartame patents as only enhancing their power relative to suppliers. PESTEL ANALYSIS OF COCA- COLA PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. Itis a tool that helps the organisations for making strategies and to know the EXTERNALenvironment in which the organisation is working and is going to work in the future.Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholicdrinks also need to undergo this PESTLE analysis to know about the external environment(especially their competitors and the opportunities available) in order to keep pace with thefast growing economy. Political Analysis:Political factors are how far a government intervenes in the operations of the company. Thepolitical factors may include tax policy, trade restrictions,

environmental policy, lawsimposed on the recruiting labours, amount of permitted goods by the government and theservice provided by the government.Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food andDrug Administration), it is an agency in the United States Department of Health and HumanServices. Its headquarters is in USA and it has started opening offices in foreign countries aswell. The job of the FDA is to check and certify whether the ingredients used in themanufacturing of Coca-Cola products in the particular country is meeting to the standards ornot. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before introducing any ingredients in its products and get prior approval from the FDA. Thecompany also has to take into consideration of the regulation imposed by FDA on plasticbottled products.Apart from FDA the other political factors includes tax policies and accounting standards.The accounting standards used by the company changes from time to time which have asignificant role in the reported results.The company also is subjected to income tax policies according to the jurisdiction of variouscountries. In addition to this, the company is also subjected to import and excise duties fordistribution of the products in the countries where it does not have the outsourcing units.Moreover, if there is any unrest or changes in the government and any kind of protest by thepolitical activists may decline the demand for the products. Also the situations like the unsureconditions prevailing in Iraq and escalation of the terrorist activities in these areas couldaffect the international market of our product. It creates an inability for the company topenetrate in the markets of such countries. Economic Factors:-The economic factors analyze the potential areas where the firm can grow and expand.

Itincludes the economic growth of the country, interest rates, exchange rates, inflation rates, wage rates and unemployment in the country. The company first analyzes the economic condition of the country before venturing into thatcountry. When there is an economic growth in the country, the purchasing power amongpeople increases. It gives the company or the marketer a good chance to market the product.Coca-Cola, in the past identified this correctly and rightly started its distribution acrossvarious countries. The net operating profits for the company outside US stands at around72%. Along with this the company uses 63 various types of currencies other than US Dollar.Hence there is a definite impact in the revenues due to the fluctuating foreign currencyexchange rates. A strong and weak currency tends to affect the exporting of the productsglobally.Interest rates are the rate which is imposed on the company for the money they haveborrowed from government. When there is an increase in the interest rates, it may deter the company in further investment as the cost for borrowing is higher. CocaCola uses derivativefinancial instruments to cope up with the fluctuating interest rates. Inflation and wage rate gohand in hand, when there is an increase in the inflation the employee demand for a higherwage rate to cope up with the cost of living.This comes as additional cost for the company which cannot be reflected in the price of thefinal product as the competition and risk in this segment is higher. This is a threat in theexternal environment faced by the company. From the above explanation it is clearly seenthat the economic factors involves a major impact in the behaviour of the company duringvarious economic situations. Social Factors:Social factors are mainly the culture aspects and attitude, health consciousness among people,population

growth with age distribution, emphasis on safety. The company cannot change thesocial factors but the company has to adjust itself to the changing society. The companyadapts various management strategies to adapt to these social trends.Coca-Cola which is a B2C company, is directly related to the customer, so social changes arethe most important factors to consider. Each and every country has a unique culture andattitude among the people. It is very important to know about the culture before marketing ina particular country. Coca-Cola has about 3300+ products in their stable, when entering into acountry it does not introduce all the products. It introduces minimum number of productsaccording to the culture of the country and the attitude of the people.Consumers and government are becoming increasingly aware of the public healthconsequences, mainly obesity which is the second social factor in the soft drinks industry. Itinspired the company to venture into the areas of Diet coke and zero calorie soft drinks. Theproblem of obesity is taken seriously among the youngsters who like to maintain a goodphysique. Hence coke introduced dietary products for those youngsters who can enjoy cokewith zero calories. In one of the study it is said that Consumer from the age groups 37 to 55are also increasingly concerned with nutrition. Since many are aware, they are concernedwith the longevity of their lives. This will affect the demand of the company in the existing product and also is an opportunity to venture into new health and energy drinks industry.Population growth rate and the age distribution is another social factor to be considered. It isvery important because non-alcoholic markets have most of its share from the children andyoungsters. Adults used to celebrate mostly with alcohol.

The age distribution of the countrybecomes important for the success of the product in a country. Technological Factors:Technology plays a varied role in the soft drinks industry. The manufacturing and distributionof the products is relatively a Low-Tech business, although the creation of a new productwith the perfect blend and taste is a science (an art in itself).Technological contributions are most important in packaging. The company rely on theirbottling partners for a significant portion of their business. Nearly 83% of the worldwide unitcase volume is manufactured and distributed by their bottling partners in whom the companydoes not have controlling power. Hence it is necessary for the company to maintain a cordialrelation with their bottling partners. If the company do not give ample support in pricing,marketing and advertising then the bottling industry while increase their short term profits,may become detrimental to the company.The advancement in technology in the company has led to: Introduction of new ways for theavailability of Coca-Cola, it introduced general vending machines all over the world. Inproducts it led to the development of new products like Cherry Coke, Diet Coke etc. The technical advancement in the bottling industries include, introduction of recyclable and non refillable bottles, introduction of cans which are trendy, stylish and popular among the youngsters. Legal Factors:-The legal factors include discrimination law, customer law, antitrust law, employment law and health and safety law. In Coca-Cola the business is subjected to various laws and regulation in the numerous countries in which they do the business, the laws include competition, product safety, advertising and labelling, container deposits, environment protection, labour practices. In the US the products of the company is subjected to various acts like

Federal Food, Drug and Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various environment related acts and regulations, the production, distribution, sale and advertising of all the products are subjected to various laws and regulations. Changes in these laws could result in increased costs and capital expenditures, which affects the company profitability and also the production and distribution of the products. Various jurisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health consequences. These requirements if become applicable in the future the company must be ready to accept and have necessary changes in hand for the same. EnvironmentFactors:-These factors include the environment such as the weather conditions and the seasons inwhich people prefer to buy cool beverages. Also the company must follow the environmentalissues related to the product manufacturing, packaging and distributing in various countries.It must adhere to the norms and market the product accordingly. Usage of renewable plasticin the PET bottles is followed by the company strictly.

SWOT ANALYSIS OF COCA-COLA

STRENGTHES WEAKNESS:- Negative Publicity, Worlds leading brand. Decline in cash from Large scale of operations. Operating Activities. Robust revenue growth in 3 Sluggish Performance in segments. SWOT ANALYSIS THREATS OPPORTUNITIES Acquisitions, Intense Competition. Growing bottled water Dependence on bottling market. Partners. Growing Hispanic Population Sluggish growth of in U.S. Carbonated beverages. . SWOT ANALYSIS OF COCA-COLA SWOT stands for Strengths Weakness Opportunities Threats. I have here SWOT analysis of Coca Cola, which would be highly beneficial for you to know about one of the Leading Beverage Manufacturer in World. SWOT assay is a address abundant acclimated in abounding accepted administration as able-bodied as business scenarios. SWOT consists of analytical the accepted activities of the organization- its Strengths and Weakness- and again application this and alien assay abstracts to set out the Opportunities and Threats that exist. Strengths:

Cooler Experience Personnel Relations Knowledge Regarding Adversary Accomplished Staff & Benefactor Added Bazaar Allotment in Textile Sector Humans Assurance on Above of our Artifact and Cast Merchandising and All-around Score Rating (Gives Backbone to brainwash bazaar about convalescent sales) Coca-Cola has been a circuitous allotment of apple ability for a actual continued time.

The product's angel is loaded with over-romanticizing, and this is an angel abounding humans accept taken acutely to heart. The CocaCola angel is displayed on T-shirts, hats, and collectible memorabilia. This acutely apparent branding is one of Coca-Cola's greatest strengths. "Enjoyed added than 685 actor times a day about the apple Coca-Cola stands as a simple, yet able attribute of above and enjoyment" (Allen, 1995). Additionally, Coca-Cola's bottling arrangement is one of their greatest strengths. It allows them to conduct business on a all-around calibration while at the aforementioned time advance a bounded approach. The bottling companies are locally endemic and operated by absolute business humans who are accustomed to advertise articles of the Coca-Cola Company. Because Coke does not accept absolute affairs of its bottling network, its basic antecedent of acquirement is the auction of apply to its bottlers. Lower amount of assembly Demonstrably above annual Presented a actual circuitous artefact Extensive advertising, acceptable promotions or business programs don't stop here, accumulate belief your competitors Ask: why do I like spending my money added at some businesses than others? Weaknesses: Weaknesses for any business charge to be both minimized and monitored in adjustment to finer accomplish abundance and ability in their business's activities, Coke is no exception.

Although calm business as able-bodied as abounding all-embracing markets are advancing (volumes in Latin America were up 12%), Coca-Cola has afresh appear some "declines in assemblage case volumes in Indonesia and Thailand due to bargain customer purchasing power." According to an commodity in Fortune magazine, "In Japan, assemblage case sales fell 3% in the additional division [of 1998]...scary because while Japan generates about 5% of common volume, it contributes three times as abundant to profits.

Latin America, Southeast Asia, and Japan annual for about 35% of Coke's aggregate and none of these markets are assuming to expectation. Coca-Cola on the added ancillary has furnishings on the teeth which is an affair for bloom care. It as well has got amoroso by which connected bubbler of Coca-Cola may could couldcould cause bloom problems. Being absorbed to Coca-Cola as well is a bloom problem, because bubbler of Coca-Cola circadian has an aftereffect on your physique afterward few years. Local Weaknesses:

Finance Botheration (Partnership Desolation) Less Abandoned on Floor Vehicles Are Less Minor Signage in the Breadth Ample Number of PCI Abandoned Stock. Abandoned Appropriation As we cannot lift empties on our adversary lifts) Added Melancholia appeal Poor annual Top prices what abroad keeps me from affairs at some places? Opportunities:

Cast acceptance is the cogent agency affecting Coke's aggressive position. Coca-Cola's cast name is accepted able-bodied throughout 94% of the apple today. The primary affair over the accomplished few years has been to get this name cast to be even bigger known. Packaging changes accept as well afflicted sales and industry positioning, but in general, the accessible has tended not to be afflicted by new products. Coca-Cola's bottling arrangement as well allows the aggregation to yield advantage of absolute advance opportunities about the world. This action gives Coke the befalling to annual a ample geographic, assorted area.

Local Opportunities:

Customers are Anode from Adversary Specially in Rural Breadth (service and quality). New Projects accept been Started (Industrial). Minor Signage Work is done in Breadth by PCI. PCI is Getting Absorption in Textile Sector. Customer of PCI are Disturbed (Because of advantage and benefactor interest. So we can yield account in this area). New technologies that access efficiencies Niche markets that ample companies do not ambition to serve This account isn't anywhere abreast complete Threats:

Currently, the blackmail of new applicable competitors in the carbonated bendable alcohol industry is not actual substantial. The blackmail of substitutes, however, is a actual absolute threat. The bendable alcohol industry is actual strong, but consumers are not necessarily affiliated to it. Possible substitutes that continuously put burden on both Pepsi and Coke cover tea, coffee, juices, milk, and hot chocolate. Even admitting Coca-Cola and Pepsi ascendancy about 40% of the absolute cooler market, the alteration health-consciousness of the bazaar could accept a austere affect. Of course, both Coke and Pepsi accept already adapted into these markets, acceptance them to accept added cogent bazaar shares and account any losses incurred due to fluctuations in the market. Customer affairs ability aswell represents a key blackmail in the industry. The animosity amid Pepsi and Coke has aftermath a actual apathetic affective industry in which administration accept to continuously acknowledge to the alteration attitudes and demands of their consumers or face accident bazaar allotment to the competition. Furthermore, consumers can calmly about-face to added beverages with little amount or consequence.

Local Threats:

Competitor's Benefactor is Financially Strong. A new PCI Distributions is expected. Adversary is Thinking Seriously About Textile Sector Market. Bounded Brands, Especially 300ML in Rs.12 Abandoned appropriation from PCI. Economic altitude become abortive TOWS Cast of Coca-Cola We accept discussed SWOT assay of Coca-Cola in our antecedent affair now actuality we are traveling to altercate the TOWS Cast of Coca-Cola befitting in apperception its SWOT analysis.

Following is the abundant assay of Coca-Cola's TOWS cast WT Analysis

One of the weaknesses that Coke posses is that its articles are of top cost. Abounding added companies are accretion its articles at lower costs like Pepsi. We can balance this lose by alms altered schemes like gifts, cars, TVs est. In Pakistan and India there are added melancholia demands of the bendable drinks because their atmosphere is actual hot. In the division Coke face difficulties in distributing the products. And as well adversity in brands because Coke has bound articles in Pakistan e.g. coca cola, sprite, fanta but Pepsi has altered articles e.g. Pepsi, Mirinda, 7up, Dew and as well Aquafina mineral water. But now Coke has alien new artefact Kinley mineral water. Although calm business as able-bodied as abounding all-embracing markets are advancing (volumes in Latin America were up 12%), coca cola has afresh appear some "declines in assemblage case volumes in Indonesia and Thailand due to bargain customer purchasing power". Even admitting Coca-Cola and Pepsi ascendancy about 40% of the absolute beverages market, the alteration healthconsciousness of the bazaar could accept a austere affect.

According to an commodity in Fortune magazine, In Japan, assemblage case sales fell 3% in the additional division [of 1998] scary because while Japan generates about 5% of common volume, it contributes three times as abundant to profits. The bendable drink industry is actual strong, but consumers are not necessarily affiliated to it. Possible substitutes that continuously put burden on both Pepsi and Coke cover tea, coffee, juices, milk, and hot chocolate. Abandoned of Coca-Cola appropriation by competitors e.g. Pepsi but we can't lift their abandoned due to their quality. The animosity amid Pepsi and coke has aftermath a actual apathetic affective industry in which administration accept to continuously acknowledge to the alteration attitudes and demands of their consumers or face accident bazaar allotment to the competition. Furthermore, consumers can calmly about-face to added beverages with little amount or consequence. Coca-cola on the added ancillary has aftereffect on the teeth which is an affair for bloom care. It as well has got amoroso by which connected bubbler of Coca-cola may could couldcould cause bloom problem, because bubbler of coca-cola circadian has an aftereffect on your physique afterward few year. Coke and Pepsi accept already adapted into those markets, acquiesce addition them to accept added adumbrated bazaar shares and account any losses incurred due to fluctuations in the market. WO Analysis:

Its weakness of bound articles in Pakistan and India could cause the opportunities in the alien ambiance to go by its hands. It had to aftermath new articles to yield abounding advantage of opportunities. Its articles are of top amount and there are so abounding opportunities in the bazaar for its advance if it lowers its amount it ability be communicable aggregate of the marketing. Its weakness of able aftertaste has bargain its bazaar humans adopt the ablaze taste. And Pepsi Cola has as well acquaint New artefact "Aquafina" mineral baptize but now Coke has as well acquaint new mineral baptize "Kinley" and this new artefact has as well low amount as analyze to Pepsi's artefact "Aquafina.

One of the acumen that why amount of coke is college is that basic headquarter is in USA area activity amount is actual high. If we attending in added countries like Mexico, Korea, Taiwan etc. actuality activity amount is low and artefact can fabricated at lower cost. ST Analysis:

Coke has backbone that it so abundant revenue, which it can advance on the assembly of new product, abounding companies are authoritative new articles so it can cope with these threats easily. Coke had a actual acceptable advertisement accusatory added companies or as well announcement their articles so Coke can handle with its accomplished business agents. In adopted countries Coke accept abounding branches with altered flavours as analyze to Pakistan, which has alone 2-3 Coke products. Its had threats from Cock, which are its basic competitors from about 100 years. It can accord with it easily. Assay and development administration of Coke is paying abounding absorption appear assembly of new & innovated articles to Pepsi with alien threats of the accretion antagonism in the alien incitement. Staff of Coke in Pakistan is actual accomplished and humans assurance on above of our artefact and brand. Coca-Cola has been a circuitous allotment of apple ability for a actual continued time. But competitors administration is financially able due to fast action of approval of Decision. This acutely apparent branding is one of Coca-Cola' greatest strengths. "Enjoyed added than 685 actor times a day about the world. Coca-Cola stands a simple, yet able attribute of above and enjoyment". But if the melancholia aeon alpha than the accumulation should not be short. SO Analysis:

Coke's basic backbone that is it revenges will advice to abduction to bazaar because it is aback cartilage of any aggregation and any aggregation can accomplish advance on the basic it had, so coke can yield advantages of opportunities.

Coke has so abounding articles so apparent beneath as befalling is consistently present in the alien ambiance for new products. As Coke did if it alien Kinley in the world. Pepsi spends huge money on advertisement action as apparent below. This can accept actual acceptable advantages because by advertisement you can bolt mach of the opportunities in the alien ambiance for this purpose. Pepsi is hiring abounding superstars. Assay and development is actual abundant innovative. It can yield abounding advantages of opportunities in alien environment.

PRODUCTS OF COCA-COLA INDIA: - In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in remote and inaccessible parts of the nation. Over the past fourteen years has enthralled consumers in India by connecting with passions of India Cricket, movies, music & food. Coca-Colas advertising campaigns Jo Chaho Ho Jaye & Life HoTohAise were very popular & had entered youths vocabulary. In2002.Coca-Cola launched its iconic campaign Thanda Matlab Coca-Cola which skyrocketed the brand to make it Indias favourite soft drink brand. GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 500ml, 1000ml 2.25L, 500ml, 100ml LIMCA:-Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider ofFreshness. Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from Nimbu hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. GLASS, PET, CAN, FOUNTAIN 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 500ml, 1000ml 2.25L, 500ml, 100ml THUMS UP:-Thums up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquired by The Coca-Cola Company in 1993. Thums up is known for its strong, fizzy taste and it confident,

mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys. GLASS, PET, CAN, FOUNTAIN 100ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 500ml, 1000ml 2.25L, 500ml, 100ml SPRITE:-Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen icon. RGB, PET, CAN, FOUNTAIN 200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES 1250ml, 1500ml, 2000ml, 2250ml FANTA:-Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identifies as The Fun Catalyst. Perceived as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. GLASS, PET, CAN, FOUNTAIN 200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 2.25L, 500ml, 100ml MINUTE MAID PULPY ORANGE:-The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation developed orange juice powder. The company developed a process that eliminated 80% of the water in the orange juice, forming a frozen concentrate that when reconstitute created orange juice. They branded it Minute Maid a name connoting the convenience and the ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. The launch of Minute Maid in India (started with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink

category. Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres. MAAZA:-Maaza was introduced in late 1970s. Maaza has today come to symbolise the very spirit of mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mango lovers first choice. RGB PET POCKET MAAZA:-200ml, 250ml 250ml, 600ml, 1.2L 200ml KINLEY:-The importance of water can never be understated, Particularly in a nation such as India where water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company. Available in PET 500ml and 1000ml. GEORGIA GOLD COFFEE:-Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major metros in India. HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino, Hot Chocolate, Cardamon Tea. COLD BEVERAGES Ice Teas, Cold Coffee.

MARKETING MIX OF COCA-COLA INDIA -Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was a Rs 1,000 cr industry and growing by 40% every year. PDW was a low margin high volume business, but it was an attractive proposition for bottlers as it increased plant utilization rates. In this market Cokes Kinley was pitched against Ramesh Chauhans Bisleri and Pepsis Aquafina. The product not only faced intense competition but also was difficult to differentiate. Coke positioned Kinley as natural water with the tag line Bhoond Bhoond Mein Vishwas (Trust in each drop of water).In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers were brought into CCIs fold. This acquisition added Crush, Canada Dry and Sport Cola to CCIs product line. This meant CCI had three orange, clear lime and cola drinks each in its portfolio. -Coke learnt with experience that price was a strategic weapon in an emerging market like India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30%demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5was rolled out countrywide in January 2003. The advertising Campaign highlighted the affordability and Indian image. To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing

marketing exercise conducted in mid 2002. In 2002 Kinley with 35% market share had become the leader in the retail PDW segment and was contributing 20% of CCIs revenues. -Coke pushed down responsibilities from corporate headquarters to the local business units. The aim was to effectively align CCIs corporate resources, support systems and culture to leverage the local capabilities. CCIs operations had been divided into North, Central and Southern regions. Each region had a president at the top, with divisions comprising marketing, finance, human resources and bottling operations. The heads of the divisions reported to the CEO. Bottling operations were divided into four companies directed by the bottling head from headquarters. Under the new plan, CCI shifted to a six region profit center set up where product customization and packaging, marketing and brand building were taken up locally. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn reported to CEO. The four bottling operations, with 37 bottling plants, were merged into Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average six bottling plants. Each plant was headed by an Area General Manager (AGM) and held profit center responsibility for a business territory. He reported to the RGM as well as the head of bottling at the head quarters. -In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. Coke, as a deliberate strategy, decided not to spend heavily on promoting ThumsUp. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. The overall marketing effort was also not

focused as CCI changed the head of marketing three times during the period. Thumps Up remained neglected. Inadequate marketing support for other Parle brands also led to their declining market shares. The bottlers taken over by Coke also had problems adjusting to a new work culture. They argued that CCIs lack of interest in promoting Thumps Up was resulting in falling sales and asked CCI to take corrective action. Coke is primarily targeted at young individuals over the age of twentyfive. This can be seen by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well known personalities popular to this age group. During 90ies Cokes promotion efforts did not seem to be effective. They were focused on mega events like the 1996 Cricket World Cup held in India. CCIs World Cup Cricket campaign was overshadowed by Pepsis "Nothing official about it" campaign. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. In 1998 localization of marketing efforts, CCI signed up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke also began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was declared the fastest growing market within the Coca-Cola system. But things were far from normal. Attempts at building growth through discounts and PET take home segment were not very successful because of lack of coordination between the launches and marketing back-up. To maintain good relationships with bottlers and avoid defections to the other camp, dealers had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments in India, amounting to $400 Mn. The revised value of CCIs assets after the charge was $300 mn.CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had become Indias No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a juice brand and saw a growth of almost 30% in 2001. Since India was a large

country of different tastes and cultures, CCI customized its marketing strategy for different regions. It promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra.

PESTEL ANALYSIS OF COCA-COLA INDIA:PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It is a tool that helps the organisations for making strategies and to know the EXTERNAL environment: - in which the organisation is working and is going to work in the future. Political Factors: Historical Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than revealing its formula to the government. They re-entered the country in 1993. However, the primary barrier for Coca-Colas entry into the Indian market was its political environment. Despite the liberalization of the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers such as bureaucracy and regulation, there was still a lot of protectionism. Indias past promotion of Indigenous availability or Swadeshi movement depicted its affinity for local products. Due to Indias suspicion of foreign business entering Indian markets, Coca Cola received alien status its re-entry. This and some of the policies imposed on foreign enterprises proved as a hindrance to the growth of the company in the country. To make things worse, the policies were neither clear no run changing. For example, foreign businesses were not allowed to market their products under the same name if selling within the Indian market. Thus, Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to Lehar Pepsi). However, the most controversial, and by far, the most damaging was when CocaCola was forced to sign an agreement to sell 49% of its equity in order to buy out Indian bottlers. Due to the lack of consistency in the legal aspects, more importance was being given to lobbying the politicians.

:-During recent times, Coca Cola India has faced its fair share of problems. On August 5 th2003, The Centre for Science and Environment (CSE), an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues". According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times. This had an adverse impact on the sales of Coca Cola, with a drop of almost 30-40%1 in only two weeks on the heels of a 75% fiveyear growth trajectory. Many leading clubs, retailers, restaurants, and college campuses across the country had stopped selling Coca-Cola. This threatened the newly achieved leadership attained over Pepsi due to a successful marketing campaign. But this was not the end of Coca Colas troubles. There was widespread discontent around many of their plants. For example, in Plachimada, Kerala, the communities in and around the Coca Cola plant blamed the factory for their water problems. Due to this, the local Panchayat decided not to renew the license issued to Coca Cola to protect public interest". The company has also been accused of illegally occupying a portion of the village property resources in Mehdiganj, near Varanasi. However, there are certain positives as well, with a 22percent increase in its unit case volume last quarter. Economic Analysis:-The Indian economy sustained the global economic slowdown in the previous year and has shown a tremendous economic growth. It showed 8.6% of growth in the last quarter of 2009-10 as compared to 5.8% same time in the

previous year. It has emerged as an attractive economy to invest in as many opportunities has been recognized. India is ranked second in economic growth, just behind China. Analysts have said that India will be the third biggest economy of the world in the coming year behind China and USA. With economic growth many opportunities have been seen, which have attracted many foreign investor to the company. Coca cola India returned to the country in 1993, despite few problems in the start they have merged as the king of soft drink industry in India. The strong economic growth of India has resulted in coca cola to invest heavily in sales and distributive channels. It has introduced two new products, Nimbu Fresh and an energy drink Burn. Coca cola registered 22% growth in their unit case volume in the second quarter (April-June).It is the 16th consecutive quarter of such growth out of which 13 are double digit. Coca cola Indias growth is in contrast to its overall performance, the beverage king reported a growth of just 5% (worldwide) in the same quarter. Inflation is one of the main problems that Indian economy has been facing for a year now. Rising prices in the food and other products doesnt only effect the consumers it also has an adverse effect on a company. The inflation rate for the year 2009 was recorded to be 11.49%.As prices have gone up in India for various products, especially oil; there has been uncertainty in decision making of almost every company. Coca cola India has also been affected by the same; it has been forced to think about their input costs, as they have been rising due to inflation. Their expenditure has been rising, with more costs in salaries, distribution channels and other operating costs. Beverage industry being price competitive market, they have not revised their product prices. Exchange rate the exchange rate of rupee to US Dollar has been stable but in the previous months the

rate has had a tumultuous period. Exchange rate determines at what price will the company export its products and import whatever is required by it. The previous year, the rate of rupee to USD touched 44, on an average it has been around 47, so the exports earned less and the imports cost more. Therefore, coca cola India had to bear some low profitable times. However, in the present scenario rates have reached a stable level and exports are on an increasing trend. SocialAnalysis: Coca- Cola returned to India in 1993 after a 16 year hiatus, amidst competition from Leher Pepsi which had the advantage of entering the country 7 years earlier. Initially, it struggled to find acceptance as there were already other brands such as Parles Thums Up which existed in the market. Coca-Cola had earlier focussed more on the American way of life in their advertising campaigns, which the Indian consumers could not identify with. Also, they did not focus on competition from other alternatives such as lemonade, Lassi etc. These products had been around for centuries, and were also cheaper alternatives to CocaCola. However, things were brought under control when Thums Up was bought over by CocaCola, and more attention was paid by the company on their marketing mix. With the lowering of their prices by almost 15-20%, introduction of newer products which appealed to the Indian tastes, more investment in market research and focussing on the target group of 18-24 year olds, they were able to increase their market share and build brand loyalty. Coca Cola today, has made significant investments to build its business in India. It has also generated employment for almost 1,25,000 people in related industry through its procurement, supply and distribution cycles. The soft drink industry today is growing steadily due to the booming economy, strengthened middle class and low per capita consumption. With the increase in health consciousness among the urban consumers,

the company has introduced newer products such as Diet Coke, which contain lesser calories than ordinary Coca Cola. This is also responsible for the company shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled water. The rural market had also been identified by Coca-Cola India as an attractive target, with almost 70% of the countrys population. The company has recorded significant growth in recent years Coca Cola India has also taken many initiatives as a responsible corporate citizen, by tying up with many NGOs such as BAIF (or Bharatiya Agro Industries Foundation), SOS Childrens Villages and Save the Children. It has also taken initiatives to promote education in rural areas. Technological Analysis: Coca-Cola has started operations of its R&D facility in India, with the view of localizing its product portfolio. The major focus would be on non carbonated drinks and flavours. The companys R&D team has already rolled out drinks such as Maaza aampanna and also Maaza mango milk drink, and is exploring options to enter new categories in India such as juices in localised flavours, energy drinks, sports drinks and flavoured water. These initiatives are being taken by the company to further expand their product portfolio. With the increasing importance of 360 degree media tools and overall ad spend on social media sets likely to grow by almost 44%, CocaCola has increased ad spend on the internet. Case in point is the recent 2009 Sprite campaign, which was first launched on the internet. Environmental Analysis: Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed in the footsteps. Coca Cola Indias Corporate Social Responsibility (CSR), is an initiative that prioritizes many social and environmental issues; one of them being water conservation. They support many community based rainwater harvesting projects and help lending conservation education. The company

has made sure that the following ideas are considered during their operations: 1. Environmental due diligence before acquiring land 2. Environmental impact assessment before commencing project 3.Ground water and environment survey before selecting the site 4. Ban on purchasing CFC emitting refrigerating equipment 5. Waste water treatment facilities 6. Compliance with all regulatory environmental requirements 7. Energy conservation programs By following these guidelines Coca-Cola India has helped the environment with consistent profits and success. They seek to provide leadership in three different areas, these are as follows: 1. Water efficiency and water quality 2. Energy efficiency 3. Eliminating or minimizing solid wasteThough being an environmental friendly company, Coca Cola India had to face its share of controversies. On 4th February, 2003, Centre of Science and Environment in India, released are port based on experiment done by Pollution Monitoring Laboratory. In the experiment, they tested 17 packaged drinking water brands and found that, Coca Colas Kinley has 15 times more pesticide residual levels than the stipulated norms, Bisleri had 59 times and Aqua plus had 109 times. The main law governing the food safety is the 1954 Prevention of food alteration act, which stated that pesticides should not be present in any food item but did not have law against pesticides being present in soft drinks. However, the Food Processing Order 1955 stated that the main ingredient used in soft drinks must be potable water but the Bureau of Indian

Standards had no prescribed standards for pesticides in water. But later it was found that BIS had stated that pesticides should not be present or it should not exceed 0.001 part per million. Further, the health ministry of India admitted that there were lapses in PFA regarding carbonated drinks As the Indian consumer is getting more educated, the government is also paying special attention to consumer laws. In the past, there were not so many laws protecting the benefits to the consumer but now every business has to go by the law and fix their operations, strategies so as to satisfy their consumers, and employees. Keeping in mind the consumer laws, employment laws, antitrust law, discrimination laws etc. a business should plan out everything.

In the present scenario, consumer is the king, if a product is defective, not meeting the stated standards a consumer can complain against the manufacturer. Complaining and getting they verdict the court has made very fast and efficient as government of India has installed new consumers courts. Their main job is to see that the consumer benefits are being met or not. When producing their beverages, Coca Cola India has to make sure that they have written price, manufacturing date, expiry date, batch no, nutritional facts are written on the packed product.

Ministry of Labour makes the laws for proper employment in the country. They have stipulated norms on employing people from the country and getting expatriates in the company as well. India has strict laws against employing child labour. Being a male dominated society, the ministry has made sure that female

employees are treated with respect and given equal importance at the work place. Every field of work has got its own wage, these are to meet the norms and laws set by the labour ministry. When employing anyone, coca cola India cannot discriminate on social, regional or any racists basis. If it is found that the company has been violating the law, it has to face strict action and fines. :-As coca cola produces a product that is consumed by the consumer as a food item, there are laws that the company must abide by when producing it. Ministry of Food Processing Industries makes and oversees the laws and norms for the food processing industries. The Indian Parliament has recently passed the Food Safety and Standards Act, 2006 that overrides all other food related laws. It will specifically repeal eight laws: The Prevention of Food Adulteration Act, 1954. The Fruit Products Order, 1955. The Meat Food Products Order, 1973. The Vegetable Oil Products (Control) Order, 1947. The Edible Oils Packaging (Regulation) Order, 1998. The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967. The Milk and Milk Products Order, 1992. Essential Commodities Act, 1955 relating to food. From now on, the act establishes a regulatory body, the Food Safety and Standards Authority of India anything that coca cola makes, have to make accordingly to the laws. They have to check the weight, volume and ingredients of the product. The export or the import

of the products by the company has to meet the quality standards stipulated by the law. -trust law:-The Competition Commission of India was made under the Indian Competition Act 2002, Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. This committee looks after all the issues regarding unethical means of doing business, competition issues and any dispute between two different business entities. CLG competition and anti trust practices are as follows: Representing clients before the MRTP Commission in monopolistic and restrictive trade practices and unfair trade practices matters. Legal Advice and sophisticated insight into the international best practices on competition law:-Consultancy services on specific issues supply and distribution, pricing and marketing, promotional materials, mergers, acquisitions, amalgamation, licensing, joint operation and research, joint buying, dominantfirm status etc. Competition Audit and Due Diligence for developing appropriate guidelines for employees, distributors, agents, franchisees etc. Legal Due Diligence on anti-competition, unfair and restrictive market practices. Drafting claims, counterclaims, replies, rejoinders, representations etc. on Competition Law and related legal issues. Strategic policing on anticompetition market practices and trends. Policy due diligence for mergers, acquisitions, joint ventures with appropriate anti- trust safeguard measures and policy. All these laws help Coca Cola India to maintain its own brand and values. Any other business trying to copy the brand of coca cola will face the strict action against itself. These laws help every business to compete in a fair environment. As it is known that the coca cola and Pepsi are the fiercest rivals in the beverage industry, the CCI makes sure that either of them does not indulge in unfair means to make profits and hurt each others business.

RESEARCH METHODOLOGY Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India OBJECTIVES OF THE STUDY efficient way the current position of Coca- Cola Company. -cola globally as well as locally. This would help us identify areas of potential growth. -Cola Company & find out different factors effecting the growth of Coca-Cola. analysis between Coca- Cola and its competitors. rstand the reasons behind the purchase of Coca-Cola products.

SCOPE OF THE STUDY: - This study basically tries to discover the current position of Coca-cola in the market. It also tries to discover the preferences of the customers when posted with a choice between Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in New Delhi, Noida and Greater Noida.

RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the needed information. It is overall operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedure. There are three types of objectives in a marketing research project: Exploratory Research Descriptive Research Casual Research

1. Exploratory Research:- The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypothesis. 2. Descriptive Research:- The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. 3. Casual Research:- The objective of casual research is to test hypothesis about casual and effect relationships. Based on the above definitions it can be established that this study is a Descriptive Research as the attitudes of the customers who buy the products have been stated. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products. SOURCES OF DATA: The data has been collected from both primary as well as secondary sources.

SECONDARY DATA:-It is defined as the data collected earlier for a purpose other than one currently being pursued As a researcher I have scanned lot of sources to get an access to secondary data which have formed a reference base to compare the research findings. Secondary data in this study has provided an insight and forms an outline for the core objectives established. The various sources of secondary data used for this study are:-

arketing reports of the company

PRIMARY DATA:- The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study. The methods that have been used to collect the primary data are:-

RESEARCH MEASURING TOOLS & TECHNIQUES: The primary tool for the data collection used in this study is the respondents response to thequestionnaire given to them. The various research measuring tools used are:-

-charts. -charts. harts. SAMPLING DESIGN: An integral component of a research design is the sampling plan. Especially it addresses threequestions: Whom to survey (sample Unit), how many to survey (Sample Size) and how toselect them (sampling Procedure). Making the census study of the entire universe will beimpossible on the account of limitations of time and money. Hence sampling becomesinevitable. A sample is only his portion of population. Properly done, sampling producesrepresentative data of the entire population. SAMPLE SIZE:(i) (ii) Through questionnaire 150 respondents. Through personal interview 27 respondents.

SAMPLING TOOL:-Questionnaire was used as a main tool for the collection of data, mainly because it gives the chance for timely feedback from respondents. Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Respondents seeking any clarification can easily be sorted out through tool. FIELD WORK:-The study was conducted in New Delhi, Noida and Greater Noida. nnaires were given to the respondents to fill in order to get their feedback. nts and the answers were noted.

LIMITATIONS OF THE STUDY:-The main purpose of this study is get idea about the preference of the customers towards various Coca-Cola products. But there are certain factors which affects this study they are as follow: selected may not be true representative of the population. (Present and future). of study. due to which the result cannot be applied universally.

DATA ANALYSIS Respondents based on age group 180 160 Number of respondents 140 120 100 80 60 40 20 0 Below 20 20-30 30-40 40-50 above 50 Number of respondents 10 159 6 1 1 Fig 2.4 Respondents based on gender 37% Male 63% Female AGE GROUP &GENDER: we can comprehend that 90% of total respondents belong to the age group of 20-30. This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group. About 6% belong to age group below 20 and 3% belong to age group of 30-40. Form, we come to know that the gender ratio of the total respondents is almost 2:1 (male: female). Frequency of soft drink consumption 50 40 30 20 Series1 10 0 Once a Twice a Thrice a Everyday Rarely week:Weekly expenditure of coca- cola products (INR) 4% 3% 12% 50-100 100-150 81% 150-200 Above 200 Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India SOFT DRINK CONSUMPTION &EXPENDITURE: From we interpret that about 48% of the total respondents consume soft drinks rarely or once a week. About 35% respondents consume soft drinks twice or thrice a week and only18% consumes soft drinks every day. From, we interpret that about 81% of the respondents spend only Rs. 50-100 a week on Coca-Cola products, which is very low as compared to the global scenario. This creates a potential growth market for Coca-Cola India. About 12% spends from 100-150 a week & 7%spend above 150. Purchasing Portal Preference 120 100 S 80 e r 60 i 40 e s 20 1 0 Supermarkets Retails Vendor Pubs & Multiplexes Machines Restaurant Vendor

Pubs & Supermarkets Retails Multiplexes Machines Restaurant Series1 26 103 8 20 20 PURCHASING PORTAL PREFERENCE: From the above data, we have ascertained that preferred portal for purchase of CocaCola products is the retail shops i.e. 58%. This is probably because not all communities in India www.GamesWala.com Page 75 Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India have supermarkets and other purchasing channels present nearby, whereas, we can find retail shops in every corner.19% prefer to purchase from Supermarkets and Vendor machines. 23%prefer to purchase from Pubs, Restaurants and Multiplexes. Occasions/Reasons for consumption Just like that Parties Cinemas Picnics Festivals 0 20 40 60 80 100 120 Festivals Picnics Cinemas Parties Just like that Series1 3 4 26 40 104 Number of respondents REASON FOR CONSUMPTION: From this graph, we infer that there is no specific occasion why people purchase Coca-Cola products. Although some of the advertising campaigns target special occasion or festivals. From Fig 2.9 it is concluded that 59% respondents purchase Coca-Cola without any specific reason. About 23% purchase for the purpose of parties, 15% purchase while watching movies in the cinemas and only about 4% purchase during festivals and for picnic purposes. Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India Soft drink preference 80 70 Number of responses 60 S 50 e r 40 i 30 e 20 s 10 1 0 Coca-Cola Pepsi Other products Other products Other drinks of Coca-Cola of Pepsi Other products of Other products of Coca-Cola Pepsi Other drinks Coca-Cola Pepsi

Series1 72 34 52 7 12 Fig 2.10SOFT DRINK PREFERENCE: From the above graph we interpret that about 70% of the respondents, prefer consuming Coca-Cola product over Pepsi and other drinks. This clearly states why Coca-Cola is market leader with almost 60% of market share. 23% prefer Pepsi Products and only 75 prefer other drinks. Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India Opinion About Coca-Cola Products Bad Below Satisfactory Good Excellent 0 20 40 60 80 100 120 NO. OF RESPONDENTS Products expected by consumers from CocaCola Fizzy drinks Fruit drinks Energy drinks Alcoholic drinks 20% 14% 26% 40% Fig 2.12OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS EXPECTED BY CONSUMERS:From Fig 2.11, we infer that though the respondents are more than satisfied by the Coca-Colaproduct range they would still like the company to introduce new drinks. From Fig 2.12, weconclude that about 40% would like to see a new fruit drink being added to the productbasket, 26% want energy drinks, 20% alcoholic drinks and only 14% want another fizzy www.GamesWala.com Page 78 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola Indiadrink. Majority of the people wanting to see a fruit drink is mainly because people are morehealth conscious now and want to manage their calorie intake. Quantity preference 90 S Number of responses 80 e 70 r 60 i 50 40 e 30 s 20 1 10 0 200250 ml 300 ml Can 500 ml Pet 1 litre 2 litre Glass bottle bottle 200-250 ml 500 ml Pet 300 ml Can 1 litre 2 litre Glass bottle bottle Series1 47 33 83 5 9 Fig 2.13QUANTITY PREFERENCE:From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET bottle ofCoca-Cola Products. About 27% prefer to

purchase glass bottles, 19% prefer Can of 300mland only 8% prefer 1 & 2 litre bottles of Coca-Cola. www.GamesWala.com Page 79 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India Branding Pepsi products Coca-Cola products 0 50 100 150 Coca-Cola products Pepsi products Series1 109 68 NO. OF RESPONDENTS Fig 2.14 Pricing 150 100 Series1 50 0 CocaCola products Pepsi products Fig 2.15BRANDING &PRICING:From Fig 2.14, it is concluded that respondents find Coca-Cola products better than that ofPepsi products. About 62% respondents said that they find Coca-cola products better thanPepsi and only 38% supported Pepsi products.From Fig 2.15, we infer that about 62% of the respondent considers the pricing of Coca-Colamuch more reliable than that of Pepsi. About 38% respondents think that Pepsi have betterpricing than that of Coca-Cola. www.GamesWala.com Page 80 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India Quality 150 100 50 Series1 0 Coca-Cola products Pepsi products Fig 2.16 TASTE Pepsi products CocaCola products 0 50 100 150 Coca-Cola products Pepsi products Series1 130 47 NO. OF RESPONDENTS Fig 2.17QUALITY &TASTE:From Fig 2.16 & 2.17, its clear that Coca-Cola products have better taste and quality thanthat of Pepsi. About 73% respondents consider that Coca-Cola products have very goodquality and taste. 27% respondents consider Pepsi products have better taste and quality. www.GamesWala.com Page 81 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India Availability Pepsi products Coca-Cola products

85 86 87 88 89 90 Coca-Cola products Pepsi products Series1 90 87 Number of respondents Fig 2.18 Satisfaction Pepsi products Series1 Coca-Cola products 0 50 100 150 Fig 2.19AVAILABILITY &SATISFACTION:From Fig 2.18, its clear that there is slight difference between the availability of products ofCoca-Cola and Pepsi. About 51% respondents think that Coca-Cola products are much easilyavailable in the market.49% consider that availability of Pepsi products is more in the market.About 70% of respondents are satisfied with the Coca-Cola products while as 30%respondents are satisfied with the Pepsi products as shown in Fig 2.19. www.GamesWala.com Page 82 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India 6. SUGGESTIONS AND CONCLUSION www.GamesWala.com Page 83 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India SUGGESTIONSThe suggestions made in this section are based on the market study conducted as part ofCoca-Cola India. The suggestions are arranged in order of form a detail demand survey at regular interval to know about the unique needs and hindrance free arrangement for its customers/retailers to make he company should focus to bring some more flavors like health drinks and other low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as it has already entered the -Colas distribution channel is mostly through retail. Whereas the competitors also concentrates more on the multiplexes, pubs and restaurants.

Coca-Cola should try to increase their distribution in these areas. market should use new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a continuous feedback and suggestions from its customers/ consumers as well as from the market and try to solve it without should be kept on distributors so that the goodwill of the BRAND doesnt get affected. www.GamesWala.com Page 84 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India CONCLUSIONThough there were certain limitations in the study that was conducted. The sample allowedfor some conclusions to be drawn on the basis of analysis that was done on the data collected.The data has clearly indicated that Coca-Cola products are more popular than the productsof Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS andAVAILABILITY, thus it should focus on good taste so that it can capture the major part ofthe market. The study also indicated that the consumers are satisfied with the Coca-Colaproducts and purchase them without any specific occasions.In todays scenario, customer is the king because he has got various choices around him. Ifyou are not capable of providing him the desired result he will definitely switch over to theother provider. Therefore to survive in this cutthroat competition, you need to be the best.Customer is no more loyal in todays scenario, so you need to be always on your toes. www.GamesWala.com Page 85 Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to

CocaManagement of Cocawww.GamesWala.com Page 86

eting

-Cola 2009.

Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India

ANNEXURE QUESTIONNAIRE

a) Male b) Female

a) Yes b) No

a) Once a week b) Twice a week c) Thrice a week d) Everyday e) Rarely

a) Coca-Cola b) Pepsi c) Other products of Coca-Cola d) Other products of Pepsi

e) Other drinks

a) 200-250 ml Glass bottle b) 300 ml Can c) 500 ml Pet bottle d) 1 litre e) 2 litre

-Cola product range? a) Excellent b) Good c) Satisfactory d) Below Satisfactory e) Bad

-Cola products? a) Festivals b) Picnics c) Parties d) Cinemas e) Just like that

-Cola products? a) Super markets b) Retails c) Vendor Machines d) Pubs & Restaurants e) Multiplexes

-Cola products per week? a) 50-100 b) 100-150 c) 150-200 d) Above 200

Parameters / Product Coca-Cola Products Pepsi Products 1) Branding 2) Quality 3) Price 4) Taste 5) Availability

6) Satisfaction

-Cola to introduce in the future? a) Fizzy Drinks b) Fruit Drinks c) Energy Drinks d) Alcoholic