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    Final report-on-coca-cola Final report-on-coca-cola Document Transcript

    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” www.GamesWala.com PROJECT REPORT ON COCA-COLA COMPANYSUBMITTED BY: MUTHU KUMARAN (94) NIDA MAJEED (103) RAGHAV KUMAR (125) RAHUL KALIA (126) RAHUL NAGPAL (127) SIMRAN KAUR PAHUJA (192) SUBMITTED TO: DR. KARTIK DAVE www.GamesWala.com Page 1
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Jai Shree Ram, Dostoi am vikas gupta, age 31 years . i start a gamingwebsite named www.GamesWala.com which hasPR4 and ratings below 4 lakh.i need here 1 help from you, as i have no moneyto promote my gaming site,i am running graphicshop with 1 PC (yes 1 PC :) think how i amsurviving with 1 PC and a family with 2 kids :P ), Ido not know much about how to promote mywebsite, so i decided to talk with you friends tocome and join my site and play all the games forfree, all games are personally selected by mefrom thousands of games.I am updating my website daily with lots ofawesome games.You can play without register orregister you id or you also can play with your www.GamesWala.com Page 2
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”facebook ID.hope you all will like my site andplay free online games there, and dont forgot totell your friends about mywww.GamesWala.com :) CONTENTSEXECUTIVE SUMMARY - PAGE 2CHAPTER 1 INTRODUCTION - PAGE 4-6CHAPTER 2 INDUSTRY PROFILE - PAGE 7-11CHAPTER 3 COMPANY PROFILE - PAGE 12-63  COCA-COLA COMPANY - PAGE 13-17  GLOBAL MARKET SHARE OF COCA-COLA - PAGE 17-18  TRENDS AND FORCES - PAGE 19-22  POTER’S FIVE FORCES - PAGE 22-29  PESTLE ANALYSIS - PAGE 29-33  SWOT ANALYSIS - PAGE 33-40  COCA-COLA INDIA - PAGE 41-42  PRODUCTS IN INDIA - PAGE 42-46  MARKETING MIX - PAGE 49-58  PESTLE ANALYSIS - PAGE 58-62  SWOT ANALYSIS - PAGE 60-62CHAPTER 4 RESEARCH METHODOLOGY - PAGE 63-68CHAPTER 5 DATA ANALYSIS - PAGE 69-79 www.GamesWala.com Page 3
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”CHAPTER 6 SUGGESTIONS AND CONCLUSION - PAGE 80-82BIBLIOGRAPHY - PAGE 83ANNEXURE - PAGE 84-85 EXECUTIVE SUMMARYThis 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 analyzethe 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 www.GamesWala.com Page 4
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”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. 1. INTRODUCTION www.GamesWala.com Page 5
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” INTRODUCTON Let reason go before every enterprise, And counsel before every actionResearch is a human activity based on intellectual investigation and is aimed atdiscovering, 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 www.GamesWala.com Page 6
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”process. Marketing research specifies the information required to address theseissues, designs the methods for collecting information, manages and implementsthe data collection process, analyzes and communicates the findings and theirimplications. -American Marketing AssociationMarketing research is about researching the whole company‘s marketingprocess. -Palmer (2000) INTRODUCTION TO COCA-COLACoca-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 world‘s 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 Company‘s 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 momentof 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 is www.GamesWala.com Page 7
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”dedicated to people working long and hard to sell the products manufactured by theCompany. This unique worldwide system has made The Coca-Cola Company the world‘spremier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,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 theCompany‘s assets and resources whilst limiting business risks. 2. INDUSTRY PROFILE www.GamesWala.com Page 8
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” INDUSTRY PROFILE A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIAFast 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 playershad been facing severe problems on account of increased competition from small and www.GamesWala.com Page 9
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”regional players and from slow growth across its various product categories. As a result, mostof the companies were forced to revamp their product, marketing, distribution and customerservice strategies to strengthen their position in the market.By the turn of the 20th century, the face of the Indian FMCG industry had changedsignificantly. With the liberalization and growth of the Indian economy, the Indian customerwitnessed an increasing exposure to new domestic and foreign products through differentmedia, such as television and the Internet. Apart from this, social changes such as increase inthe number of nuclear families and the growing number of working couples resulting inincreased spending power also contributed to the increase in the Indian consumers personalconsumption. The realization of the customers growing awareness and the need to meetchanging requirements and preferences on account of changing lifestyles required the FMCGproducing companies to formulate customer-centric strategies. These changes had a positiveimpact, leading to the rapid growth in the FMCG industry. Increased availability of retailspace, rapid urbanization, and qualified manpower also boosted the growth of the organizedretailing sector.HLL led the way in revolutionizing the product, market, distribution and service formats ofthe 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 ledinitiatives in the 2003 budget such as the setting up of excise free zones in various parts of thecountry that witnessed firms moving away from outsourcing to manufacturing by investing inthe zones.Though the absolute profit made on FMCG products is relatively small, they generally sell inlarge 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 dinner. www.GamesWala.com Page 10
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Unlike 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 INDIAIn 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 NON-COLA www.GamesWala.com Page 11
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.0 BEVERAGES IN INDIAThe beverage industry is vast and there various ways of segmenting it, so as to cater theright product to the right person. The different ways of segmenting it are as follows:  Alcoholic, non-alcoholic and sports beverages.  Natural and Synthetic beverages.  In-home consumption and out of home on premises consumption.  Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.  Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.If the behavioural patterns of consumers in India are closely noticed, it could be 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 tomake the industry more affordable.Four strong strategic elements to increase consumption of the products of the beverageindustry in India are:  The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.  The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.  Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.  Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. www.GamesWala.com Page 12
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. 3. COMPANY PROFILE www.GamesWala.com Page 13
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 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.  To refresh the world... www.GamesWala.com Page 14
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  To inspire moments of optimism and happiness...  To create value and make a difference.VISION:Our vision serves as the framework for our Roadmap and guides every aspect of our businessby describing what we need to accomplish in order to continue achieving sustainable, qualitygrowth.  People: Be a great place to work where people are inspired to be the best they can be.  Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples desires and needs.  Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.  Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.  Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.  Productivity: Be a highly effective, lean and fast-moving organization.WINNING CULTURE:Our Winning Culture defines the attitudes and behaviours that will be required of us to 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.  Leadership: The courage to shape a better future.  Collaboration: Leverage collective genius.  Integrity: Be real.  Accountability: If it is to be, its up to me.  Passion: Committed in heart and mind.  Diversity: As inclusive as our brands.  Quality: What we do, we do well. www.GamesWala.com Page 15
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”FOCUS ON THE MARKET:  Focus on needs of our consumers, customers and franchise partners.  Get out into the market and listen, observe and learn.  Possess a world view.  Focus on execution in the marketplace every day.  Be insatiably curious.WORK SMART:  Act with urgency.  Remain responsive to change.  Have the courage to change course when needed.  Remain constructively discontent.  Work efficiently.ACT LIKE OWNERS:  Be accountable for our actions and inactions.  Steward system assets and focus on building value.  Reward our people for taking risks and finding better ways to solve problems.  Learn from our outcomes -- what worked and what didn‘t.BE THE BRAND:Inspire creativity, passion, optimism and fun. HISTORY OF COCA-COLAThe 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 calledPembertons French Wine Coca. He may have been inspired by the formidable success of VinMariani, a European cocawine. www.GamesWala.com Page 16
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”In 1886, when Atlanta and Fulton County passed prohibition legislation, Pembertonresponded by developing Coca-Cola, essentially a non-alcoholic 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. Asa Griggs Candler acquired a stake in Pembertons company in 1887 andincorporated it as the Coca Cola Company in 1888. The same year, while suffering from anongoing addiction to morphine, Pemberton sold the rights a second time to four morebusinessmen: 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 JohnPembertons 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. www.GamesWala.com Page 17
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”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, atthe Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. Theoriginal 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-the-counter 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 Arab www.GamesWala.com Page 18
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”League boycotted the company in 1968.In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."The word "Classic" was truncated because "New Coke" was no longer in production,eliminating the need to differentiate between the two. The formula remained unchanged.In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ouncebottles 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-COLAIn 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 KO‘s sales.KO‘s 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 KO‘s offerings in the CSD category,coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO tomaintain its share of this important market. KO has also responded to consumers‘ changingtastes 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, www.GamesWala.com Page 19
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”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 juicecompany, 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 estimatesof Nidans purchase price are between $560-$620 million.In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruitsmoothie 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 ofCoca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew foran additional 20 years. TRENDS AND FORCES  The Global Economic Recession Threatens Overall Demand:In 2008 and 2009, the global economy has fallen into a recession. Not just the United 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 brokeantitrust laws in China. On March 5, 2010, Cokes CEO said that emerging markets arebouncing back quicker than more developed markets. www.GamesWala.com Page 20
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  New Aversion to Soda Threatens Main Business:74% of the 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 allbeverages 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.  Integrated Bottler Strategy Increases Flexibility: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 company-ownedbottlers into the Bottling Investments division, Isdell has continued to increase KOs interestin its bottlers through stake purchases or outright buyouts. This strategy represents aweakening 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 agreements www.GamesWala.com Page 21
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”with many of its bottlers which allow them to distribute drinks produced by other companies.For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink teamade by Ferolito, Vultaggio & Sons, an American iced-tea company. Isdell sees theseagreements as another way of taking advantage of the rapidly growing non-CSD market.  Bottled Water Falling Out of Favour:In Q3 2009, Dasani 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 manycustomers 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 experts dont expect bottled water tobounce back anytime soon.  Dollar Affects International Performance:Another trend 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 www.GamesWala.com Page 22
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”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.  Commodity Cost Fluctuations Affect Margins:The Coca-Cola Company‘s 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 company‘s total cost of production as well as its profit margins. Changes in theproduction costs of bottlers can also impact KO‘s profitability, though in a more indirect way.If the raw materials necessary for bottling become more expensive, the bottler may be 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 Company‘s profit margins. In2007, the prices of these commodities rose drastically with general commodities bubble anddramatically pressured margins. They receded in 2008, but the possibility of anothersignificant rise in Commodities represents a constant threat to profits. www.GamesWala.com Page 23
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” POTER’S FIVE FORCES  RIVALRY AMONG EXISTING FIRMS:The greatest competition that Coca-cola faces is from the rival sellers within the industry.Coca-Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in 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 NationalBeverage Company make up the remaining market share. All five of these companies make aportion of their profits outside of the United States. www.GamesWala.com Page 24
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta,and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca-Cola has higher sales in the global market than PepsiCo, PepsiCo is the main competitor 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 Coca-Cola 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, www.GamesWala.com Page 25
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Saudi Arabia and Pakistan.By most accounts, Coca-Cola 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 Coca-Cola 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. www.GamesWala.com Page 26
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”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 re-introduction 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. www.GamesWala.com Page 27
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  POTENTIAL ENTRANTS:New entrants 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:Numerous beverages are available as 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 Coca-Colas 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 growth.‖ www.GamesWala.com Page 28
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Substitute 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 www.GamesWala.com Page 29
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”brands like Pepsi, Dr pepper/Snapple.  BARGANING POWER OF BUYERS:Individual consumers 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 bottlers.  BARGANING POWER SUPPLIERS: The 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 sweetening www.GamesWala.com Page 30
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”agent 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- COLAPESTLE 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 beforeintroducing 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 plastic www.GamesWala.com Page 31
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”bottled 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 www.GamesWala.com Page 32
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”company in further investment as the cost for borrowing is higher. Coca-Cola 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 www.GamesWala.com Page 33
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”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. Thetechnical advancement in the bottling industries include, introduction of recyclable and nonrefillable bottles, introduction of cans which are trendy, stylish and popular among theyoungsters.Legal FactorsThe legal factors include discrimination law, customer law, antitrust law, employment lawand health and safety law. In Coca-Cola the business is subjected to various laws andregulation in the numerous countries in which they do the business, the laws include www.GamesWala.com Page 34
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”competition, product safety, advertising and labelling, container deposits, environmentprotection, labour practices.In the US the products of the company is subjected to various acts like Federal Food, Drugand Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act,various environment related acts and regulations, the production, distribution, sale andadvertising of all the products are subjected to various laws and regulations. Changes in theselaws could result in increased costs and capital expenditures, which affects the companyprofitability and also the production and distribution of the products.Various jurisdictions may adopt significant regulations in the additional product labelling andwarning of certain chemical content or perceived health consequences. These requirements ifbecome applicable in the future the company must be ready to accept and have necessarychanges in hand for the same.Environment FactorsThese 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 www.GamesWala.com Page 35
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 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. North America. SWOT ANALYSIS THREATS OPPORTUNITIES Acquisitions. Intense Competition. Growing bottled water Dependence on bottling market. Patners. Growing Hispanic Population Sluggish growth of in U.S. Carbonated beverages. . Fig 2.1 SWOT ANALYSIS OF COCA-COLASTRENGTHES:  WORLD’S LEADING BRANDCoca-Cola has strong brand recognition across the globe. The company has a leading brandvalue and a strong brand portfolio. Business-Week and Inter-brand, a branding consultancy,recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brandvalue of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product brands.The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke,Sprite and Fanta. www.GamesWala.com Page 36
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Strong brands allow the company to introduce brand extensions such as Vanilla Coke, CherryCoke and Coke with Lemon. Over the years, the company has made large investments inbrand promotions. Consequently, Coca-cola is one of the best recognized global brands. Thecompany‘s strong brand value facilitates customer recall and allows Coca-Cola to penetratenew markets and consolidate existing ones.  LARGE SCALE OF OPERATIONSWith revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola isthe largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates andsyrups in the world. Coco-Cola is selling trademarked beverage products since the year 1886in the US. The company currently sells its products in more than 200 countries. Of theapproximately 52 billion beverage servings of all types consumed worldwide every day,beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4billion.The company‘s operations are supported by a strong infrastructure across the world. Coca-Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturingplants located throughout the world.In addition, it owns or has interest in 37 operations with 95 principal beverage bottling andcanning plants located outside the US. The company also owns bottled water production andstill beverage facilities as well as a facility that manufactures juice concentrates. Thecompany‘s large scale of operation allows it to feed upcoming markets with relative ease andenhances its revenue generation capacity.  ROBUST REVENUE GROWTH IN 3 SEGMENTSCoca-Cola‘s revenues recorded a double digit growth, in three operating segments. Thesethree segments are Latin America, ‗East, South Asia, and Pacific Rim‘ and Bottlinginvestments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005.During the same period, revenues from ‗East, South Asia, and Pacific Rim‘ grew by 10.6% www.GamesWala.com Page 37
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”while revenues from the bottling investments segment by 19.9%.Together, the three segments of ―Latin America‖, ―East, South Asia‖ and ―Pacific Rim‖bottling investments, accounted for 34.8% of total revenues during fiscal 2006. Robustrevenues growth rates in these segments contributed to top-line growth for Coca-Cola during2006.WEAKNESS:  NEGATIVE PUBLICITYThe Coca-Cola Company has been involved in a number of controversies and lawsuits relatedto its relationship with human rights violations and other perceived unethical practices. Therehave been continuing criticisms regarding the Coca-Cola Companys relation to the MiddleEast and U.S. foreign policy. The company received negative publicity in India duringSeptember 2006.The company was accused by the Centre for Science and Environment(CSE) of selling products containing pesticide residues. Coca-Cola products sold in andaround the Indian national capital region contained a hazardous pesticide residue.On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr. MuhtarKent, President and Chief Executive Officer, to warn him that the FDA had concluded thatCoca-Colas product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food, Drug,and Cosmetic Act.In January 2009, the US consumer group the Centre for Science in the Public Interest filed aclass-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, alongwith the companys flavours, of Vitamin Water. Claims say that the 33 grams of sugar aremore harmful than the vitamins and other additives are helpful. www.GamesWala.com Page 38
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  SLUGGISH PERFORMANCE IN NORTH AMERICACoca-Cola‘s performance in North America was far from robust. North America is Coca-Cola‘s core market generating about 30% of total revenues during fiscal 2006. Therefore, astrong performance in North America is important for the company.In North America the sale of unit cases did not record any growth. Unit case retail volume inNorth America decreased 1% primarily due to weak sparkling beverage trends in the secondhalf of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover,the company also expects performance in North America to be weak during 2007. Sluggishperformance in North America could impact the company‘s future growth prospects andprevent Coca-Cola from recording a more robust top-line growth.  DECLINE IN CASH FROM OPERATING ACTIVITIESThe company‘s cash flow from operating activities declined during fiscal 2006. Cash flowsfrom operating activities decreased 7% in 2006 compared to 2005. Net cash provided byoperating activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-Cola‘s cash flows from operating activities in 2006 also decreased compared with 2005 as aresult of a contribution of approximately $216 million to a tax-qualified trust to fund retireemedical benefits.The decrease was also the result of certain marketing accruals recorded in 2005.Decline incash from operating activities reduces availability of funds for the company‘s investing andfinancing activities, which, in turn, increases the company‘s exposure to debt markets andfluctuating interest rates.OPPORTUNITIES:  ACQUISITIONSDuring 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently, www.GamesWala.com Page 39
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controllingshareholding in KBL, its bottling joint venture with the Kerry Group, in Hong Kong.The acquisition extended Coca-Cola‘s control over manufacturing and distribution jointventures in nine Chinese provinces.In Germany the company acquired Apollinaris which sells sparkling and still mineral water.Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company in SouthAfrica. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. Theseacquisitions strengthened Coca-Cola‘s international operations.These also give Coca- Cola an opportunity for growth, through new product launch or greaterpenetration of existing markets. Stronger international operations increase the company‘scapacity to penetrate international markets and also gives it an opportunity to diversity itsrevenue stream. On 25 February 2010, Coco cola confirms to acquire the Coca colaenterprises (CCE) one the biggest bottler in North America. This strategy of coca colastrengthens its operations internationally.  GROWING BOTTLED WATER MARKETBottled water is one of the fastest-growing segments in the world‘s food and beverage marketowing to increasing health concerns. The market for bottled water in the US generatedrevenues of about $15.6 billion in 2006.Market consumption volumes were estimated to be 30 billion litres in 2006. The marketsconsumption volume is expected to rise to 38.6 billion units by the end of 2010. Thisrepresents a CAGR of 6.9% during 2005-2010.In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of2010. In the bottled water market, the revenue of flavoured water (water-based, slightlysweetened refreshment drink) segment is growing by about $10 billion annually. Thecompany‘s Dasani brand water is the third best-selling bottled water in the US. Coca-Colacould leverage its strong position in the bottled water segment to take advantage of growing www.GamesWala.com Page 40
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”demand for flavoured water.  GROWING HISPANIC POPULATION IN U.SHispanics are growing rapidly both in number and economic power. As a result, they havebecome more important to marketers than ever before. In 2006, about 11.6 million UShouseholds were estimated to be Hispanic. This translates into a Hispanic population of about42 million.The US Census estimates that by 2020, the Hispanic population will reach 60 million oralmost 18% of the total US population. The economic influence of Hispanics is growing evenfaster than their population. Nielsen Media Research estimates that the buying power ofHispanics will exceed $1 trillion by 2008- a 55% increase over 2003 levels.Coca-Cola has extensive operations and an extensive product portfolio in the US. Thecompany can benefit from an expanding Hispanic population in the US, which wouldtranslate into higher consumption of Coca-Cola products and higher revenues for thecompany.THREATS:  INTENSE COMPETITIONCoca-Cola competes in the non-alcoholic beverages segment of the commercial beveragesindustry. The company faces intense competition in various markets from regional as well asglobal players. Also, the company faces competition from various non-alcoholic sparklingbeverages including juices and nectars and fruit drinks. In many of the countries in whichCoca-Cola operates, including the US, PepsiCo is one of the company‘s primary competitors.Other significant competitors include Nestle, Cadbury Schweppes, Groupe DANONE andKraft Foods.Competitive factors impacting the company‘s business include pricing, advertising, salespromotion programs, product innovation, and brand and trademark development and www.GamesWala.com Page 41
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”protection. Intense competition could impact Coca-Cola‘s market share and revenue growthrates.  DEPENDENCE ON BOTTLING PARTNERSCoca-Cola generates most of its revenues by selling concentrates and syrups to bottlers inwhom it doesn‘t have any ownership interest or in which it has no controlling ownershipinterest. In 2006, approximately 83% of its worldwide unit case volumes were produced anddistributed by bottling partners in which the company did not have any controlling interests.As independent companies, its bottling partners, some of whom are publicly tradedcompanies, make their own business decisions that may not always be in line with thecompany‘s interests. In addition, many of its bottling partners have the right to manufactureor distribute their own products or certain products of other beverage companies.If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners,then the partners may take actions that, while maximizing their own short-term profits, maybe detrimental to Coca-Cola. These bottlers may devote more resources to businessopportunities or products other than those beneficial for Coca-Cola. Such actions could, inthe long run, have an adverse effect on Coca-Cola‘s profitability.In addition, loss of one or more of its major customers by any one of its major bottlingpartners could indirectly affect Coca-Cola‘s business results. Such dependence on thirdparties is a weak link in Coca-Cola‘s operations and increases the company‘s business risks.  SLIGGISH GROWTH OF CARBONATED BEVERAGESUS consumers have started to look for greater variety in their drinks and are becomingincreasingly health conscious. This has led to a decrease in the consumption of carbonatedand other sweetened beverages in the US. The US carbonated soft drinks market generatedtotal revenues of $63.9 billion in 2005, this representing a compound annual growth rate(CAGR) of only 0.2% for the five-year period spanning 2001-2005. The performance of themarket is forecast to decelerate, with an anticipated compound annual rate of change (CAGR) www.GamesWala.com Page 42
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”of -0.3% for the five-year period 2005-2010 expected to drive the market to a value of $62.9billion by the end of 2010.Moreover in the recent years, beverage companies such as Coca-Cola have been criticized forselling carbonated beverages with high amounts of sugar and unacceptable levels ofdangerous chemical content, and have been implicated for facilitating poor diet andincreasing childhood obesity. Moreover, the US is the company‘s core market. Coca-Colaalready expects its performance in the region to be sluggish during 2007. Coca-Cola‘srevenues could be adversely affected by a slowdown in the US carbonated beverage market.Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced toclose down its operation by a socialist government in the drive for self sufficiency. After 16years of absence, coca cola returned to India and witnessed a different culture and economicplatform. During their absence, Parle brothers introduced a new type of cola called THUMSUP. Along with, they also formulated a lemon flavoured drink, LIMCA, and mango www.GamesWala.com Page 43
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”flavoured, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a hopeto beat the main competitor (Pepsi). They presumed that with the tried and tested products ofParle they will be able to regain their throne in the Indian soft drink market. Pepsi having a 6year head start helped revive the demand for global cola but it was not easy for the soft drinkgiant (coca cola) to return to India. Pepsi put more focus on the youth of the country in theiradvertisements but coca cola tried influencing Indians with the ‗American‘ way of life, whichturned out to be a mistake.Coca-Cola invested heavily in India for the first five years, which got them credit of beingone of the biggest investor in the country; however, their sales figures were not soimpressive. Hence, they had to re-think their market strategies. Coca-Cola learned fromHindustan Lever that reducing their will result in more turnover, hence leading to profit. Theylaunched an extensive market research in India. They ascertained that in India 3 As must beapplied; Affordability, Availability and Acceptability. Coca-Cola learnt that they werecompeting with local drinks such as ―Nimbu Pani‖, ―Narial Pani‖, ―Lassi‖ etc. and reached toa conclusion that competitive pricing was unavoidable. Since then they introduced a 200 mlglass bottle for Rs.5.Further, they had different advertising campaigns for different regions of the country. In thesouthern part, their strategy was to make Bollywood or Tamil stars to endorse their products.In various regions they tried portraying coca cola products with different regional foodproducts. One of the most famous ad campaigns in India was ‗Thanda Matlab Coca-Cola‘;they featured the same quote with different regional entities.Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packagedwater Segment, compared to its arch rival, Pepsi. Diversifying their product range and havinga competitive pricing policy, they have regained their throne. With virtually all the goods andservices required to produce and market Coca-Cola being made in India, the business systemof the Company directly employs approximately 6,000 people, and indirectly createsemployment for more than 125,000 people in related industries through its vast procurement, www.GamesWala.com Page 44
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”supply, and distribution System.The Indian operations comprises of 50 bottling operations, 25 owned by the Company, withanother 25 being owned by franchisees. That apart, a network of 21 contract packersmanufactures a range of products for the Company.On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate thenarrow alleyways of Indian cities – constantly keep our brands available in every nook andcorner of the Country‘s remotest areas. PRODUCTS OF COCA-COLA INDIA COCA-COLA:-In India Coca-Cola was leading soft drink till 1977 when Government policies necessitatedits departure. Coca-Cola made its return to the country in 1993 and made significantinvestments to ensure that the beverage is available to more and more people, even in remoteand inaccessible parts of the nation.Over the past fourteen years has enthralled consumers in India by connecting with passions ofIndia – Cricket, movies, music & food. Coca-Cola‘s advertising campaigns “Jo Chaho HoJaye” & “Life Ho Toh Aise” 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 India‘s favourite soft drink brand. GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 500ml, 1000ml 2.25L, 500ml, 100ml Table - 1.0 www.GamesWala.com Page 45
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 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 andlemoni bite combined with the single minded proposition of the brand as the provider of―Freshness‖.Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from ―Nimbu‖ +―Jaise‖ hence Lime Sa, Limca has lived up to its promises of refreshment and has been theoriginal 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 Table - 1.1 THUMS UP:-Thums up is a leading sparkling soft drink and most trusted brand in India. Originallyintroduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums upis 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 www.GamesWala.com Page 46
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 500ml, 1000ml 2.25L, 500ml, 100ml Table - 1.2 SPRITE:-Sprite a global leader in the lemon lime category is the second largest sparkling beveragebrand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be atrue teen icon. RGB PET CAN FOUNTAIN 200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES 1250ml, 1500ml, 2000ml, 2250ml Table – 1.3 FANTA:-Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strongmarket place and is identifies as ―The Fun Catalyst‖. Perceived as a fun youth brand, Fantastands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelingsbut also helps free spirit thus encouraging one to indulge in the moment. This positiveimagery is associated with happy, cheerful and special times with friends. www.GamesWala.com Page 47
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” GLASS PET CAN FOUNTAIN 200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES 2.25L, 500ml, 100ml Table – 1.4 MINUTE MAID PULPY ORANGE:-The history of the Minute Maid brand goes as far back as 1945 when the Florida FoodCorporation developed orange juice powder. The company developed a process thateliminated 80% of the water in the orange juice, forming a frozen concentrate that whenreconstitute created orange juice. They branded it Minute Maid a name connoting theconvenience and the ease of preparation. Minute Maid thus moved from a powderedconcentrate 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 furtherextend 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 1970‘s. Maaza has today come to symbolise the very spirit ofmangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maazais the mango lover‘s first choice. RGB PET POCKET MAAZA www.GamesWala.com Page 48
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 200ml, 250ml 250ml, 600ml, 1.2L 200ml Table – 1.5 KINLEY:-The importance of water can never be understated, Particularly in a nation such as Indiawhere water governs the lives of the millions, be it as a part of everyday ritual or as themonsoon which gives life to the sub continent. Kinley water comes with the assurance ofsafety 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 coffeebeverages is the perfect solution for office and restaurant needs. Today Georgia coffee isavailable at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all majormetros in India. HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino, Hot Chocolate, Cardamon Tea. COLD BEVERAGES Ice Teas, Cold Coffee. Table – 1.6 MARKETING MIX OF COCA-COLA INDIA  PRODUCT:-Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite,Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where www.GamesWala.com Page 49
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was aRs 1,000 cr industry and growing by 40% every year. PDW was a low margin – high volumebusiness, but it was an attractive proposition for bottlers as it increased plant utilization rates.In this market Coke‘s Kinley was pitched against Ramesh Chauhan‘s Bisleri and Pepsi‘sAquafina. The product not only faced intense competition but also was difficult todifferentiate. Coke positioned Kinley as natural water with the tag line “Bhoond BhoondMein Vishwas” (Trust in each drop of water).In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlerswere brought into CCI‘s fold. This acquisition added Crush, Canada Dry and Sport Cola toCCI‘s product line. This meant CCI had three orange, clear lime and cola drinks each in itsportfolio.  PRICE:-Coke learnt with experience that price was a strategic weapon in an emerging market likeIndia. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyondthe reach of many Indian customers. In 2000, CCI conducted a yearlong experiment incoastal 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 theaffordability and Indian image.To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected placesin Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testingmarketing exercise conducted in mid – 2002. In 2002 Kinley with 35% market share hadbecome the leader in the retail PDW segment and was contributing 20% of CCI‘s revenues.  PLACE:-Coke pushed down responsibilities from corporate headquarters to the local business units.The aim was to effectively align CCIs corporate resources, support systems and culture toleverage the local capabilities. CCIs operations had been divided into North, Central and www.GamesWala.com Page 50
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Southern regions. Each region had a president at the top, with divisions comprisingmarketing, finance, human resources and bottling operations. The heads of the divisionsreported to the CEO. Bottling operations were divided into four companies directed by thebottling head from headquarters. Under the new plan, CCI shifted to a six region profit centerset up where product customization and packaging, marketing and brand building were takenup locally. A Regional General Manager (RGM) headed each region with the regionalfunctional heads reporting to him. All the RGMs reported to VP (Operations, who in turnreported to CEO. The four bottling operations, with 37 bottling plants, were merged intoHindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average sixbottling plants. Each plant was headed by an Area General Manager (AGM) and held profitcenter responsibility for a business territory. He reported to the RGM as well as the head ofbottling at the head quarters.  PROMOTION:-In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketingcampaign positioned Coca-Cola as an international brand and did not emphasize localassociation. 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 marketingthree times during the period. Thumps Up remained neglected. Inadequate marketing supportfor 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. Theyargued that CCIs lack of interest in promoting Thumps Up was resulting in falling sales andasked CCI to take corrective action.Coke is primarily targeted at young individuals over the age of twenty-five. This can be seenby Coca-Colas advertising campaigns, which are aimed towards the young, by featuring wellknown personalities popular to this age group. During 90ies Cokes promotion efforts did notseem to be effective. They were focused on mega events like the 1996 Cricket World Cup www.GamesWala.com Page 51
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”held in India. CCIs World Cup Cricket campaign was overshadowed by Pepsis "Nothingofficial about it" campaign. Major analysts were surprised that Thumps Up was totally out ofthe picture during such a mega event. In 1998 localization of marketing efforts, CCI signedup celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Cokealso began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India wasdeclared the fastest growing market within the Coca-Cola system. But things were far fromnormal. Attempts at building growth through discounts and PET take home segment were notvery 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, dealershad been pampered by offering expensive overseas trips. In 2000, Coke wrote offinvestments in India, amounting to $400 Mn. The revised value of CCIs assets after thecharge was $300 mn.CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it hadbecome Indias No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as ajuice brand and saw a growth of almost 30% in 2001. Since India was a large country ofdifferent tastes and cultures, CCI customized its marketing strategy for different regions. Itpromoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta inTamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra. PESTEL ANALYSIS OF COCA-COLA INDIAPESTLE 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.Political Factors:  Historical www.GamesWala.com Page 52
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Coca Cola India was the leading soft drink brand in India till 1977 when it left rather thanrevealing its formula to the government. They re-entered the country in 1993. However, theprimary barrier for Coca-Cola‘s entry into the Indian market was its political environment.Despite the liberalization of the Indian economy in 1991 and introduction of the NewIndustrial Policy to eliminate barriers such as bureaucracy and regulation, there was still a lotof protectionism. India‘s past promotion of ―Indigenous availability‖ or ―Swadeshimovement‖ depicted its affinity for local products. Due to India‘s suspicion of foreignbusiness entering Indian markets, Coca Cola received alien status its re-entry. This and someof the policies imposed on foreign enterprises proved as a hindrance to the growth of thecompany in the country. To make things worse, the policies were neither clear norunchanging.For example, foreign businesses were not allowed to market their products under the samename if selling within the Indian market. Thus, Coca Cola had to be changed to Coca ColaIndia (and Pepsi had to be renamed to Lehar Pepsi). However, the most controversial, and byfar, the most damaging was when Coca-Cola was forced to sign an agreement to sell 49% ofits equity in order to buy out Indian bottlers. Due to the lack of consistency in the legalaspects, more importance was being given to lobbying the politicians.  Recent ScenarioDuring 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 onenvironmental sustainability issues (specifically the effects of industrialization and economicgrowth) issued a press release stating: "12 major cold drink brands sold in and around Delhicontain a deadly cocktail of pesticide residues". According to tests conducted by the PollutionMonitoring Laboratory (PML) of the CSE from April to August, three samples of twelvePepsiCo and Coca-Cola brands from across the city were found to contain pesticide residuessurpassing 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 onlytwo weeks on the heels of a 75% five-year growth trajectory. Many leading clubs, retailers,restaurants, and college campuses across the country had stopped selling Coca-Cola. This www.GamesWala.com Page 53
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”threatened the newly achieved leadership attained over Pepsi due to a successful marketingcampaign.But this was not the end of Coca Cola‘s troubles. There was widespread discontent aroundmany of their plants. For example, in Plachimada, Kerala, the communities in and around theCoca Cola plant blamed the factory for their water problems. Due to this, the local Panchayatdecided not to renew the license issued to Coca Cola to ―protect public interest". Thecompany has also been accused of illegally occupying a portion of the village propertyresources 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 hasshown 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 attractiveeconomy to invest in as many opportunities has been recognized.  Economic growthIndia is ranked second in economic growth, just behind China. Analysts have said that Indiawill 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 manyforeign investor to the company.Coca cola India returned to the country in 1993, despite few problems in the start they haveemerged as the king of soft drink industry in India. The strong economic growth of India hasresulted in coca cola to invest heavily in sales and distributive channels. It has introduced twonew 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 www.GamesWala.com Page 54
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”India‘s growth is in contrast to its overall performance, the beverage king reported a growthof just 5% (worldwide) in the same quarter.  Inflationary effectsInflation is one of the main problems that Indian economy has been facing for a year now.Rising prices in the food and other products doesn‘t only effect the consumers it also has anadverse 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 beenuncertainty in decision making of almost every company. Coca cola India has also beenaffected by the same; it has been forced to think about their input costs, as they have beenrising due to inflation. Their expenditure has been rising, with more costs in salaries,distribution channels and other operating costs. Beverage industry being price competitivemarket, they have not revised their product prices.Exchange rateThe exchange rate of rupee to US Dollar has been stable but in the previous months the ratehas had a tumultuous period. Exchange rate determines at what price will the company exportits products and import whatever is required by it. The previous year, the rate of rupee toUSD touched 44, on an average it has been around 47, so the exports earned less and theimports 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 anincreasing trend.Social Analysis:Coca- Cola returned to India in 1993 after a 16 year hiatus, amidst competition from LeherPepsi which had the advantage of entering the country 7 years earlier. Initially, it struggled tofind acceptance as there were already other brands such as Parle‘s Thums Up which existedin the market. Coca-Cola had earlier focussed more on the American way of life in theiradvertising campaigns, which the Indian consumers could not identify with. Also, they didnot focus on competition from other alternatives such as lemonade, Lassi etc.These products had been around for centuries, and were also cheaper alternatives to Coca- www.GamesWala.com Page 55
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Cola. 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 whichappealed to the Indian tastes, more investment in market research and focussing on the targetgroup of 18-24 year olds, they were able to increase their market share and build brandloyalty.Coca Cola today, has made significant investments to build its business in India. It has alsogenerated employment for almost 1,25,000 people in related industry through itsprocurement, supply and distribution cycles.The soft drink industry today is growing steadily due to the booming economy, strengthenedmiddle class and low per capita consumption. With the increase in health consciousnessamong 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 thecompany 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, withalmost 70% of the country‘s population. The company has recorded significant growth inrecent yearsCoca Cola India has also taken many initiatives as a responsible corporate citizen, by tying upwith many NGOs such as BAIF (or Bharatiya Agro Industries Foundation), SOS Children‘sVillages and Save the Children. It has also taken initiatives to promote education in ruralareas.Technological Analysis:Coca-Cola has started operations of its R&D facility in India, with the view of localizing itsproduct portfolio. The major focus would be on non carbonated drinks and flavours. Thecompany‘s R&D team has already rolled out drinks such as Maaza aam panna and also aMaaza mango milk drink, and is exploring options to enter new categories in India such asjuices in localised flavours, energy drinks, sports drinks and flavoured water. Theseinitiatives are being taken by the company to further expand their product portfolio. www.GamesWala.com Page 56
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”With the increasing importance of 360 degree media tools and overall ad spend on socialmedia sets likely to grow by almost 44%, Coca-Cola has increased ad spend on the internet.Case in point is the recent 2009 Sprite campaign, which was first launched on the internet.Environmental Analysis:Coca Cola has earned a title of environment friendly company and Coca Cola India too hasfollowed in the footsteps. Coca Cola India‘s Corporate Social Responsibility (CSR), is aninitiative that prioritizes many social and environmental issues; one of them being ‗waterconservation‘. They support many community based rainwater harvesting projects and helplending 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 programsBy following these guidelines Coca-Cola India has helped the environment with consistentprofits and success. They seek to provide leadership in three different areas, these are asfollows: 1. Water efficiency and water quality 2. Energy efficiency 3. Eliminating or minimizing solid waste. www.GamesWala.com Page 57
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Though being an environmental friendly company, Coca Cola India had to face its share ofcontroversies. On 4th February, 2003, Centre of Science and Environment in India, released areport based on experiment done by Pollution Monitoring Laboratory. In the experiment, theytested 17 packaged drinking water brands and found that, Coca Cola‘s Kinley has 15 timesmore pesticide residual levels than the stipulated norms, Bisleri had 59 times and Aquaplushad 109 times.The main law governing the food safety is the 1954 Prevention of food alteration act, whichstated that pesticides should not be present in any food item but did not have law againstpesticides being present in soft drinks. However, the Food Processing Order 1955 stated thatthe main ingredient used in soft drinks must be ‗potable water‘ but the Bureau of IndianStandards 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 notexceed 0.001 part per million. Further, the health ministry of India admitted that ‗there werelapses in PFA regarding carbonated drinks‘. Fig 2.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA www.GamesWala.com Page 58
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Legal Analysis:As the Indian consumer is getting more educated, the government is also paying specialattention to consumer laws. In the past, there were not so many laws protecting the benefits tothe consumer but now every business has to go by the law and fix their operations, strategiesso as to satisfy their consumers, and employees. Keeping in mind the consumer laws,employment laws, antitrust law, discrimination laws etc. a business should plan outeverything.  Consumer LawsIn the present scenario, consumer is the king, if a product is defective, not meeting the statedstandards a consumer can complain against the manufacturer. Complaining and getting theverdict the court has made very fast and efficient as government of India has installed newconsumers 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 writtenprice, manufacturing date, expiry date, batch no, nutritional facts are written on the packedproduct.  Employment LawsMinistry of Labour makes the laws for proper employment in the country. They havestipulated norms on employing people from the country and getting expatriates in thecompany as well. India has strict laws against employing child labour. Being a maledominated society, the ministry has made sure that female employees are treated with respectand 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 thatthe company has been violating the law, it has to face strict action and fines.  Health and safety lawsAs coca cola produces a product that is consumed by the consumer as a food item, there are www.GamesWala.com Page 59
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”laws that the company must abide by when producing it. Ministry of Food ProcessingIndustries 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 thatoverrides 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 Authorityof India. Anything that coca cola makes, have to make accordingly to the laws. They have tocheck the weight, volume and ingredients of the product. The export or the import of theproducts by the company has to meet the quality standards stipulated by the law.  Anti-trust lawThe Competition Commission of India was made under the Indian Competition Act 2002,Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. This committeelooks after all the issues regarding unethical means of doing business, competition issues andany dispute between two different business entities. CLG competition and anti trust practicesare 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 www.GamesWala.com Page 60
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” marketing, ‗promotional materials‘, mergers, acquisitions, amalgamation, licensing, joint operation and research, joint buying, ‗dominant-firm‘ status etc. Competition Audit and Due Diligence for developing appropriate guidelines for employees, distributors, agents, franchisees etc. Legal Due Diligence on anti-competition, unfair and restrictive market practices. Drafting claims, counter-claims, replies, rejoinders, representations etc. on Competition Law and related legal issues. Strategic policing on anti-competition market practices and trends. Policy due diligence for mergers, acquisitions, joint ventures with appropriate anti- trust safeguard measures and policy.All these laws help Coca Cola India to maintain its own brand and values. Any other businesstrying to copy the brand of coca cola will face the strict action against itself. These laws helpevery business to compete in a fair environment. As it is known that the coca cola and Pepsiare the fiercest rivals in the beverage industry, the CCI makes sure that either of them doesnot indulge in unfair means to make profits and hurt each other‘s business. SWOT ANALYSIS OF COCA-COLA INDIA STRENGTHES WEAKNESSES Distribution Network. Health Care Issues. Strong Brand Image. Small Scale Sector Reservations. Low Cost of Operation. SWOT ANALYSIS OPPORTUNITIES THREATS Large Domestic Markets. Imports. Export Potential. Tax & Regulatory Sector. High Income among People. Slowdown in Rural Demand. www.GamesWala.com Page 61
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIASTRENGTHES:  DISTRIBUTION NETWORKThe Company has a strong and reliable distribution network. The network is formed on thebasis of the time of consumption and the amount of sale yielded by a particular customer inone transaction. It has a distribution network consisting of a number of efficient salesmen,700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes ofdistribution, from 10 tonne to open bay three wheelers that can navigate the narrow alleywaysof Indian cities – constantly keep Coca-Cola brands available in every nook and corner of theCountry‘s remotest areas.  STRONG BRAND IMAGECoke has its history of about more than a century and this prolonged sustenance hasdefinitely added to the brand image in the minds of the consumers and to its wallet. Theproducts produced and marketed by Coca-Cola India have a strong brand image.Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brandname of Coca-Cola Company as a whole. Coca Cola India for the first time has come outwith corporate campaign in India targeting its stakeholders. The multimediacampaign “Little Drops of Joy " is aimed at raising the corporate brand image of thecompany which took a heavy beating with a number of controversies it faced in differentdomains.The new campaign is a part of a complete restructuring exercise in the Indian arm of thisglobal change. Coca Cola recently announced its new corporate strategy called the ―5 Pillar"strategy. The company has identified the 5 pillars as People. Planet. Portfolio. www.GamesWala.com Page 62
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” Partners. Performance.  LOW COST OF OPERATIONSIn light of the company‘s Affordability Strategy, Coca-Cola went about bringing a cost-focusculture in the company. This included procurement Efficiencies – through focus on key inputmaterials, trade discipline and control and proactive tax management through tax incentives,excise duty reduction and creating marketing companies. These measures have reduced thecosts of operations and increased profit margins.WEAKNESSES:  HEALTH CARE ISSUESIn India, there exists a major controversy concerning pesticides and other harmful chemicalsin bottled products including Coca-Cola. In 2003, the Centre for Science and Environment(CSE), a non- governmental organization in New Delhi, said aerated waters produced by softdrinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola,contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that cancontribute to cancer and a breakdown of the immune system.  SMALL SCALE SECTOR RESERVATIONSThe Company‘s operations are carried out on a small scale and due to Governmentrestrictions and ‗red-tapism‘, the Company finds it very difficult to invest in technologicaladvancements and achieve economies of scale.OPPORTUNITIES:  LARGE DOMESTIC MARKETSThe domestic market for the products of the Company is very high as compared to any other www.GamesWala.com Page 63
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market;this includes a 42 per cent share of the cola market.Other products account for 16 per cent market share, chiefly led by Limca. The companyappointed 50,000 new outlets in the first two months of this year, as part of its plans to coverone lakh outlets for the coming summer season and this also covered 3,500 new villages. InBangalore, Coca-Cola amounts for 74% of the beverage market.  EXPORT POTENTIALThe Company can come up with new products which are not manufactured abroad, likeMaaza etc and export them to foreign nations. It can come up with strategies to eliminateapprehension from the minds of the people towards the Coke products produced in India sothat there will be a considerable amount of exports and it is yet another opportunity tobroaden future prospects and cater to the global markets rather than just domestic market.  HIGHER INCOME AMONG PEOPLEDevelopment of India as a whole has lead to an increase in the per capita income therebycausing an increase in disposable income. Unlike olden times, people now have the power ofbuying goods of their choice without having to worry much about the flow of their income.Coca-Cola Company can take advantage of such a situation and enhance their sales.THREATS:  IMPORTSAs India is developing at a fast pace, the per capita income has increased over the years and amajority of the people are educated, the export levels have gone high. People understandtrade to a large extent and the demand for foreign goods has increased over the years.If consumers shift onto imported beverages rather than have beverages manufactured withinthe country, it could pose a threat to the Indian beverage industry as a whole in turn affecting www.GamesWala.com Page 64
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”the sales of the Company.  TAX & REGULATORY SECTORThe tax system in India is accompanied by a variety of regulations at each stage on theconsequence from production to consumption. When a license is issued, the productioncapacity is mentioned on the license and every time the production capacity needs to beincreased, the license poses a problem. Renewing or updating a license every now and then isdifficult. Therefore, this can limit the growth of the Company and pose problems.  SLOWDOWN IN RURAL DEMANDThe rural market may be alluring but it is not without its problems: Low per capita disposableincomes that is half the urban disposable income; large number of daily wage earners, acutedependence on the vagaries of the monsoon; seasonal consumption linked to harvests andfestivals and special occasions; poor roads; power problems; and inaccessibility toconventional advertising media. All these problems might lead to a slowdown in the demandfor the company‘s products. www.GamesWala.com Page 65
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 4. RESEARCH METHODOLOGY www.GamesWala.com Page 66
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” OBJECTIVES OF THE STUDY  The main objective of the project is to analyze and study in efficient way the current position of Coca- Cola Company.  To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally. This would help us identify areas of potential growth.  The study was aimed to perform Market Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola.  Another objective of the study was to perform Competitive analysis between Coca- Cola and its competitors.  To understand the reasons behind the purchase of Coca-Cola products. SCOPE OF THE STUDY:- This study basically tries to discover the current position of Coca-cola in the market. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in New Delhi, Noida and Greater Noida RESEARCH DESIGN www.GamesWala.com Page 67
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”A research design is the specification of methods and procedures for acquiring the neededinformation. It is overall operational pattern or framework of the project that stipulates whatinformation 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 Researchas the attitudes of the customers who buy the products have been stated. Through this studywe are trying to analyze the various factors that may be responsible for the preference ofCoca-Cola products. SOURCES OF DATAThe 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. www.GamesWala.com Page 68
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”As a researcher I have scanned lot of sources to get an access to secondary data which haveformed a reference base to compare the research findings. Secondary data in this study hasprovided an insight and forms an outline for the core objectives established.The various sources of secondary data used for this study are:-  News papers.  Magazines.  Text books.  Marketing reports of the company.  Internet. PRIMARY DATA:- The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study.The methods that have been used to collect the primary data are:-  Questionnaire.  Personal Interview. RESEARCH MEASURING TOOLS & TECHNIQUESThe primary tool for the data collection used in this study is the respondent‘s response to thequestionnaire given to them. The various research measuring tools used are:-  Questionnaire.  Personal interview.  Tables. www.GamesWala.com Page 69
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  Percentages.  Pie-charts.  Bar-charts.  Column charts. SAMPLING DESIGNAn 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. Through questionnaire – 150 respondents. ii. Through personal interview – 27 respondents.SAMPLING TOOL:-Questionnaire was used as a main tool for the collection of data, mainly because it gives thechance for timely feedback from respondents. Moreover respondents feel free to disclose allnecessary detail while filling up a questionnaire. Respondents seeking any clarification caneasily be sorted out through tool. Sampling Tools Respondents NumberQuestionnaire Customers 150 www.GamesWala.com Page 70
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”Personal Interview Customers 27 Total 177 Table – 1.7FIELD WORK:-The study was conducted in New Delhi, Noida and Greater Noida.  The questionnaires were given to the respondents to fill in order to get their feedback.  Questions were read out to the respondents and the answers were noted.LIMITATIONS OF THE STUDY:-The main purpose of this study is get idea about the preference of the customers towardsvarious Coca-Cola products. But there are certain factors which affects this study they are asfollow:  Since the sampling procedure was judgmental, the sample selected may not be true representative of the population.  Economic and market conditions are very unpredictable (Present and future).  The project duration is limited to 4 weeks so it limits the area of study.  The study was confined to New Delhi, Noida and Greater Noida due to which the result cannot be applied universally. www.GamesWala.com Page 71
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” 5. DATA ANALYSIS www.GamesWala.com Page 72
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” Respondents based on age group 180 160 Number of respondents 140 120 100 80 60 40 20 0 Below 20 20-30 30-40 40-50 above 50 Number of respondents 10 159 6 1 1 Fig 2.4 Respondents based on gender 37% Male 63% Female Fig 2.5 www.GamesWala.com Page 73
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”AGE GROUP & GENDER:From Fig 2.4, we can comprehend that 90% of total respondents belong to the age group of20-30. This is because most of the consumers that prefer or consume Coca-Cola productsbelong to this age group. About 6% belong to age group below 20 and 3% belong to agegroup of 30-40.Form Fig 2.5, we come to know that the gender ratio of the total respondentsis 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 week week Fig 2.6 Weekly expenditure of coca- cola products (INR) 4% 3% 12% 50-100 100-150 81% 150-200 Above 200 Fig 2.7 www.GamesWala.com Page 74
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”SOFT DRINK CONSUMPTION & EXPENDITURE:From Fig 2.6, we interpret that about 48% of the total respondents consume soft drinks rarelyor once a week. About 35% respondents consume soft drinks twice or thrice a week and only18% consumes soft drinks every day.From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-100 a weekon Coca-Cola products, which is very low as compared to the global scenario. This creates apotential 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 Fig 2.8PURCHASING PORTAL PREFERENCE:From the above data, we have ascertained that preferred portal for purchase of Coca-Colaproducts 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 customerpreference for Coca-Cola brands with reference to Coca-Cola India”have supermarkets and other purchasing channels present nearby, whereas, we can find retailshops 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 Fig 2.9REASON FOR CONSUMPTION:From this graph, we infer that there is no specific occasion why people purchase Coca-Colaproducts. 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 specificreason. About 23% purchase for the purpose of parties, 15% purchase while watching moviesin the cinemas and only about 4% purchase during festivals and for picnic purposes. www.GamesWala.com Page 76
    • “Project Report on Coca-Cola Company and study of customerpreference 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 consumingCoca-Cola product over Pepsi and other drinks. This clearly states why Coca-Cola is marketleader with almost 60% of market share. 23% prefer Pepsi Products and only 75 prefer otherdrinks. www.GamesWala.com Page 77
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” Opnion About Coca-Cola Products Bad Below Satisfactory Satisfactory Good Excellent 0 20 40 60 80 100 120 NO. OF RESPONDENTS Fig 2.11 Products expected by consumers from Coca-Cola 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 India”drink. 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 0 200-250 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 Coca-Cola 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 Coca-Cola 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, it‘s 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, it‘s 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 of―Coca-Cola India‖. The suggestions are arranged in order of priority, highest first.  Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.  The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.  The company should focus to bring some more 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 energy drink arena with ―Burn‖.  Coca-Cola‘s distribution channel is mostly through retail. Whereas the competitors also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should try to increase their distribution in these areas.  The company must keep a watch on its primary competitors in market in order to be able to compete with them.  The company should use new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole.  The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from the market and try to solve it without any delay to establish its own good credibility.  A strong watch should be kept on distributors so that the goodwill of the BRAND doesn‘t get affected. 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 today‘s 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 today‘s 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 Coca-Cola India” BIBLIOGRAPHYBOOKS:  Marketing Management – Kotler Philip.  Research Methodology – Kothari.WEBSITES:  www.thecoca-colacompany.com  www.news.bbc.co.uk  www.india-server.com  www.magindia.com  www.coca-colaindia.com  www.wikiinvest.com  www.open2.netOTHERS  Annual report of Coca-Cola 2008.  Annual report of Coca-Cola 2009. www.GamesWala.com Page 86
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India” ANNEXURE QUESTIONNAIRE  NAME: ..............................................................................  GENDER: a) Male b) Female  Do you drink Soft drinks? a) Yes b) No  How often do you have soft drinks per week? a) Once a week b) Twice a week c) Thrice a week d) Everyday e) Rarely  What drink comes to your mind when you think of soft drinks? a) Coca-Cola b) Pepsi c) Other products of Coca-Cola d) Other products of Pepsi e) Other drinks  What quantity do you usually prefer to buy? a) 200-250 ml Glass bottle b) 300 ml Can c) 500 ml Pet bottle d) 1 litre e) 2 litre  What do you feel about Coca-Cola product range? a) Excellent b) Good c) Satisfactory d) Below Satisfactory e) Bad www.GamesWala.com Page 87
    • “Project Report on Coca-Cola Company and study of customerpreference for Coca-Cola brands with reference to Coca-Cola India”  What occasions do you prefer to buy Coca-Cola products? a) Festivals b) Picnics c) Parties d) Cinemas e) Just like that  What is your most preferred channel for purchasing Coca-Cola products? a) Super markets b) Retails c) Vendor Machines d) Pubs & Restaurants e) Multiplexes  How much do you spend on Coca-Cola products per week? a) 50-100 b) 100-150 c) 150-200 d) Above 200  Put (X) mark in which ever you feel is appropriate? Parameters / Product Coca-Cola Products Pepsi Products 1) Branding 2) Quality 3) Price 4) Taste 5) Availability 6) Satisfaction  What kind of products do you want Coca-Cola to introduce in the future? a) Fizzy Drinks b) Fruit Drinks c) Energy Drinks d) Alcoholic Drinks............................................................................................................... Thank you! www.GamesWala.com Page 88