coca cola marketing strategies


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coca cola marketing strategies

  1. 1. A RESEARCH PROJECT REPORT ON “ MARKETING STRATEGIES OF COCA-COLA” In partial fulfilment of the requirement for the award of the degree of Master of Business Administration of U.P. Technical University, Lucknow (2003-2005) SUBMITTED TO : SUBMITTED BY: Prof.- Dr. JITENDRA MEHROTRA BRIJESH KUMAR SONI (Dean school of management studies) MBA-IV SEM MANGALMAY INSTITUTE OF MANAGEMENT AND TECHNOLOGY GREATER NOIDA PREFACE
  2. 2. “Acceptance of New challenge makes the path for future success” Today companies must urgently and critically rethink their business mission and marketing strategies. Instead of operating in a market place of fixed and known competition and stable customer preferences, today companies work in war zone of rapidly changing customer/competitor technological advance, new law , managed trade policies and diminishing customer loyalty. Company considers the fact that today customer face a plenitude of product every category. Consider that customer exhibit varying and diverse requirement for product service combination and prices. In the face of their vast choices, customer will gravitate to the offering that best meet their individual needs and expectation. Therefore it is not surprising that today’s winning companies are those who succeed best in satisfying indeed delighting, their target customer. If they can’t bring something special to get market. They will not last long. These companies are market. They will not last long. These companies are market focused and customer driven. They pay extreme attention to quality and service to meeting and even exceeding customer expectation. ACKNOWLEDGEMENT
  3. 3. I feel an immense pleasure in taking this opportunity to express my sincere thanks and deep gratitude towards my honourable guide Mr. manoj chauhan, Regional Sales Manager (DASNA), for designing of the project and being a constant source of inspiration and guidance. It has been a great privilege for me to his constant encouragement, meticulous guidance, constructive criticism and invaluable counsel through out the conduct of the project. I am highly thankful to my guide Mr. Shamendra for the scholastic & kind advice and the valuable time that he gave during my tenure as a trainee in COCA-COLA. I am also thankful to all the members of the esteemed staff of Marketing Department of COCA-COLA, especially Mr. Jeevan Joshi, Mr. Ashwini and Ms. Renu, who helped me directly or indirectly in my endeavour. They too guided me whenever required. I shall be failing in my duty if I do not acknowledge my thanks to Prof.- Dr. Jitendra Mehrotra, Dean shchool of management studies & coordinator Prof. Sandeep Sharma Management in Mangalmay Institute of Management And Technology, Greater Noida, without whose guidance and cooperation this project would haven’t been successfully accomplished. Brijesh Kumar Soni
  4. 4. INTRODUCTION • In 1893 in January Coca-cola was registered in the U.S. PATENT office. • In 1894 the first syrup plant outside of Atlanta was opened in Dallas. • In 1906 the first two countries outside the U.S. to bottle Coca-Cola were Cuba and Panama. • In 1915 the Root Glass co. created the Coca-Cola contour glass bottle. • In 1919 the co. was sold to group of investors for $25 million. • In 1923 Coca-Cola Robert W.woodruff became president of the Coca-Cola Co. his more than six decades of leadership took the business to unrivalled heights of commercial success, making C0ca- C0la an institution all over the world. • In 1925 6million Coke sold per day. • In 1927 the first Coca-Cola radio advertisement. • In 1928 Sales of bottle Coca-Cola surpassed fountain sales for the first time. • In 1929 Advertising slogan-“The Pause That Refreshes”. • In 1940Coke is bottled in over 40 countries. • In 1956 Advertising-“Coca-Cola, making good thing taste better”. • In 1961 Sprite was introduced. • In 1970 advertising slogan-“it’s the Real Thing”. • In 1971 The song “I’d like to buy the world a Coke” was released. • In 1979 advertising slogan- “Have a Coke and a Smile”.
  5. 5. • In 1982 Diet Coke was introduced in July. • In 1988 Coca-Cola was the first independent operator in the Soviet Union. • In 1989 Advertising slogan-“Can’t Beat the Feeling”. • In 1993 C0ca-C0la exceeds 10 billions cases sold worldwide COCA-COLA: In Relation to India The Coca-Cola Co. first came to India in 1930’s. it left the Indian shores in 1977. coca-cola returned to India after a 16yrs. Absence and was launched in Hathras near Agra on Oct.26th . A strategic alliance with Parle Exports gave the co. instant ownership of the nations top soft drinks viz.: Thumps Up, Limca, GoldSpot and Maaza. Coca-Cola could also get hold of Parle’s extensive 54 bottling plants network spread all over India and a base for a rapid introduction of the Co’s international brands. CCI has the distinction of declaring breakeven in the very first year of operations, in 1994. then in 1996, Coca-Cola’s Indian volume in terms of gallon sales grew by 21%over 1995. while unit case sales grew by 23% over 1995, carving out a 61.7% market share. The Co. has now a 53 strong bottling plnat network and has been guaranteed approval by the Govt. of India to invest a total of US$840 million into the country.
  6. 6. FACTS ABOUT COCA-COLA While much of the world has changed since 1886, the pure and simple magic of a thing remains same “Coca-Cola”. The name and the product means so many good things to hundreds of millions of consumers round the globe. Coca-Cola products are served more than 773 million times everyday, quenching the thirst of consumers in more than 195countries and in every climate. That’s long way to come after such a modest beginning. OUR ROOTS While much of the world has changed since 1886, the pure and simple magic of one thing stays the same Coca-Cola. The name and the product represent simple moments of pleasure for consumers in nearly 200 Countries around the globe, who for products of the Coca-Cola Co. hundreds of millions of times every single day. John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia in a three legged brass kettle in his backyard. He first ‘distributed’ the new product by carrying Coca- Cola in a jug down the street to Jacob’s pharmacy. For five cents, consumers could enjoy a glass of
  7. 7. Coca-Cola at the soda fountain. Whether by design or accident , carbonated water was timed with the new syrup, producing a drink that was proclaimed ‘delicious and refreshing,’ Dr. Pemberton’s partner and bookkeeper, Frank M .Robinson, suggested the name and pinner “Coca-Cola” in the unique flowing script that is famous worldwide today . Mr. Robinson thought the “two Cs would look well in advertising”. Dr. Pemberton sold 25 gallons of syrup , shipped in bright red wooden kegs. Red has been a distinctive color associated with the number I soft drink brand ever since . For his efforts , Dr, Pemberton grossed $50 and spent $13.96 on advertise. By 1891 Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola Business. With in years, his merchandising flair helped expand consumption of Coca-Cola Co. was sold to a group of investors for $25million. Robert W. Woodruff became president of the Co. in 1923, and his more than six decades of leadership took the business to unrivalled heights of commercial success, making Coca-Cola institution the world over.
  8. 8. COCA-COLA’S STRATEGY TO REACH INCREASED NUMBER OF CONSUMERS The 3 A’s id the underlying strategy for meeting Co’s.goals in order to reach increasing number of consumer’s . thus the 3A’s are: Availability The ways to increase availability of the product of Coca-Cola Co. includes improved or innovative new packaging, Dispensing systems, and distribution system, marketing programs and training and development programs. Acceptability Making Coca-Cola brand is the beverage choice for any occasion depends on a variety of strategies designed to reach target audience. Acceptability can also be accepted through advertising, sponsorship, and promotion, youth market activities, community programs and other activities.
  9. 9. COCA-COLA’S MARKET APPROACH More than a billion times every day, thirsty people around the world reach for Coca-Cola products for refreshment. They deserve the highest quality----- every time. Our promise to deliver that quality is the most important promise we make. And it involves a worldwide, yet distinctively local, network of bottling partners, suppliers, distributors and retailers whose success is paramount to our own. Our investment in local communities in over 200 countries totals billions of dollars in jobs, facilities, marketing, the purchase of local goods and services, and local business partnerships. Always and everywhere, we purse continuo’s innovation in the products we offer , the processes we use to make them, the packages we develop and the ways we bring them to market.
  10. 10. OUR BRANDS Wouldn’t you to know what Apricot, Coffee, Lychee Nut, Orange, Cola Mix and Sour Cherry beverages taste like? One of the most popular areas of the world of Coca-Cola, our Co’s. Atlanta attraction, is “Taste of the World”, the opportunity to sample some of the many beverages we produce. As the global leader in the non-alcoholic beverage industry, we offer nearly 300 brands across almost 200 countries. Many of these brands, including soft drinks, fruit juices, bottles water and sports drinks, are only available in specific reason for this is simple: different people like different beverages at different times, for different reasons. So pour yourself a virtual glass of something you have never experienced before. Take a look at some of the many brands we offer to people around the world.
  11. 11. Coca-Cola : Coca-Cola is the most popular and biggest selling soft drink in history, as well as the best known product in the world . created in Atlanta, Georgia by Dr. John S. Pemberton, Coca- Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with Carbonated water. Coca- Cola was registered as a trademark in 1895. Coca-Cola was being sold in every state and territory in the United States. In 1899, the Co. began franchised bottling operations in the United States. Today, you can find Coca-Cola in virtually every part of the world and the Coca-Cola Co. has more than 230 beverages to its portfolio.
  12. 12. Diet Coke “Looking good and tasting great” Diet Coke was born in 1982 and quickly became the No.1 sugar free drink in diet –conscious America, known as Diet Coke in the U.S., Canada, Australia and Great Britain and as Coca-Cola light in other countries, it’s now the No.3 soft drink in the world. It’s the drink for people who want no calories, but plenty of taste. Ad campaigns around the world for diet coke share a playful, sophisticated and sexy attitude. Visit our Audio/Video-center to witness how the Diet Coke north American ad campaign celebrates the real and human attributes that make people alluring in the eyes of others.
  13. 13. Fanta: The Coca-Cola Co. acquired a favourite in Europe since the 1940’s, Fanta in 1960. Fanta Orange is the core flavour, representing about 70% of sales, but other citrus and fruit flavours have their own solid fan base. Consumers around the world, particularly teens, fondly associate FANTA with happiness and special times with friends and family. This positive imagery is driven by the brand’s fun, playful personality, which goes hand in hand with the bright color (particularly orange), bold fruit taste, and tingly carbonation. Fanta sells best in Brazil, Germany, Spain, Japan, Italy and Argentina. Fanta distribution was increased in the U.S. in 2001 with the return of four flavour : Orange, strawberry, pineapple and grape. Orange, the biggest seller, is now available in most of the country.
  14. 14. Limca: “ Light and Lemony” This thirst quenching beverange features a fresh, light lemon-lime taste and fun-loving attitude. It’s a homegrown, national treasure in India, where the Coca-Cola Co. acquired it in 1993. the product’s invigorationg taste and cloudy look haven’t changed, but the brand has been revitalized with a new marketing campaign. Limca continues to build a loyal following among young adults who love the lighthearted way it compliments the best moments of their lives. It’s also become a hit in many Persian Gulf countries. Grab a Limca and go. Maaza: “yaari Dosti Taaza Maaza” with the real fruits taste kids love, plus added calcium, Maaza’s tagline, “Yaari-Dosti Taaza Maaza “means” Friendship moments with fresh Maaza”in Hindi. Maaza was introduced in India in 1984 as a no carbonated mango fruit drink. It was acquired by the Coca-Cola Co. in 1993 and is currently available in three flavours, manbo, pineapple and orange plus added calcium.
  15. 15. Sprite: “Clear, crisp, refreshing.” Introduced in 1960, Sprite is the world’s leading lemon lime flavoured soft drink.sprite is sold in more than 190 countries and ranks as the No.4 soft drink worldwide, with a strong appeal to young people. Millions of peopleenjoy Sprite because of its crisp, clean taste that really quenches your thirst. But also has an honest, straightforward attitude about things that sets it apart from other soft drinks. Sprite encourages you to be true to who you are and to obey your thirst. Thumps Up: “Strong Cola Taste, exciting personality”: Thumps Up is the leading carbonated soft drink and most trusted brand in India, originally introduced in 1977, it was acquired by theCoca-Cola Co. in 1993. it is known for it’s strong, fizzy taste and it’s confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.
  16. 16. COMMITMENT TOWARDS INDIAN BRANDS Coca-Cola India (CCI ) has implemented aggressive strategies for all the five brands acquired from Parle. The strategies adopted are in concern with the long –term plans of Coca-Cola India. The Coca- Cola Co. is the world’s largest beverage Co. and is the leading producer and marketer of soft drink. The Co. markets 4 of the world’s top 5 brands, including Diet Coke, Fanta Sprite. As the 200ml returnable Glass Bottle (RGB)has become the popular package size of the Indian Carbonated soft Drink Industry. Thumps-up and limca are now available in 200ml RGB, 300ml RGB, 500mlPET, 2lt PET, 330mlcans thus , along with Coca-Cola and Fanta, the Indian consumer has a choice of 4 brands in cans. Collectively, the choice in package sizes available to consumers is now wider than ever before. This has also generated incremental volume growth at the retail level adding positively to the per capita consumption in the country. While thumps Up has always been India’s leading Carbonated soft drinks, Limca is the No. 1 brand in the cloudy lemon segment. From 1993 till date, inputs in both the brands ran the gamut in advertising to packaging, raising brand awareness to unprecedented levels. The investment in acquiring these brands and the proceeding inputs there in has seen these brands grow admirably. While Thumps-up has grown over 50% over the last 3Yrs , Limca has grown over 20%.Thumps-Up recorded a phenomenal growth of 54% in the Mumbai market in March 1997, the first month of the launch of the new logo. The new logo that has a strong streak of blue speed lines adding a powerful element of speed and adventure was featured on 500ml refillable “thunder Pack” bottles. Research conducted by “research International” in Mumbai showed that 84% of Thumps-Up consumers preferred the new logo to the old one.
  17. 17. COCA-COLA’S: CREATIVITY IN ADVERTISIMENT Coca-Cola: “Thanda Matlab Coca-Cola” this ad is creative in the sense that, while enjoying they can use the word “Coca-Cola” in the place of “Thanda”. The word thanda has been made to be synonymous to Coca-Cola. The Ad is made to target the common people who wish to quench their thirst by just asking for any brand instead of Coca-Cola. While doing such they may extend their taste, behaviour $preference towards Coca-Cola. The main theme of this slogan is to make the brand common for every person and at every time. THUMPS UP: “taste the thunder” this advertisement is also creative. The slogan itself refers the thundering idea. It challenges the teenagers for the taste. It is well known the today’s youth want to do something extraordinary. They want to showthemselves superior. So company is exploiting the mentality of today’s youth that the productis for them who want to accept the challenges.
  18. 18. SPRITE: “ dekhave pen a jao apni akal lagao” the creative advertisement refers that don’t go on exposure . try to go on rationality. It made for those people who want to do their work by their own opinion and taste. Now a days everything is full of exposure that is made to attract the people and such type of products always give the dissatisfaction among the people. Therefore the world’s biggest soft drink company has made a product for the man who doesn’t try to go on exposure and who always believe in rationality i.e. sprite. LIMCA: “ just ! Take it Easy” it is well known that lemon in used to over come the stress as well as it helps in digesting. Regarding thia truth Coca-Cola made its product Limca, to follow the principle of lemon. Ot refers that if someone is in the depth of stress and strain and he want to refresh himself, he must go on lemon flaver, Limca is the best.
  19. 19. COCA-COLA INDIA-OUR VISION Provide exceptional strategic leadership on the Coca-Cola India system, resulting in consumer and costomer preference and loyality, through Coca-Cola’s commitment to them and in a highly profitable Coca-Cola corporate branded beverages system. THE COCA-COLA MISSION “ THE BEST GLOBLE COMPANY “ the mission of Coca-Cola co. is to increase shareowner value over time. The co. accomplishes the mission by working with its business partners to deliver satisfaction and value to customers and consumers through world wide system of superior brands and services, thus increasing brand equity on a global basis, create customer products, services and communications, customer service and bottling strategies, process and tools in order to create competitive advantage and deliver superior value.
  20. 20. OBJECTIVES OF THE STUDY In this study an effort has been to several factors which need to be taken due consideration to adhere to the advertising, sales promotion and various sales influencing factors of the soft drink market. In the fast changing competitive as well as economic scenario all around the world and the domestic front, the main objective of the study are:- • To study the promotional policies of the beverage companies onto various highways. • Study the comparative adds promotion by Coke in respect to Pepsi. • Analysis regarding displays set up on the highways by the companies in order to induce the sales. • Study for designing the budget requirement of the company for the coming year mainly focusing marketing of the product. • Basically survey on the type of promotional setback faced by their product not representing up to mark performance.
  21. 21. HIGHWAY ANALYSIS An indigenous effort on the behalf of the surveyor in order to be very cautious while collection of the raw data that is of primary nature of promotion at highways. This highway is a part of the study undertaken on the behaf of the Coca-Cola Co. in order to help it design out its next coming years marketing and advertising are performed in order to capture the psychological attention of the passed by in order to refresh them. The study is thereby based on the primary data collected at various refreshing outlets being covered on the major highways of – Delhi and NCR region. It is basically a comparative study between the two major “ColaGiants”-PEPSI and Coke. The two major routes being covered during my survey on the project are: • Noida ( Sec-37) To Surajpur.(Route having Pepsi’s- Devyani Bottling Plant) • Vijay Nagar Check Post To Garh Ganga.(Route having Coca-Cola’s Ghaziabad Production Plant)
  22. 22. SURVEY TERMINOGY (1) SHOP NAME : Name of the Outlet. (2) AREA : Route break- through being covered.(Market Area Studied) (3) GSB : Glow Sign Board. (4)DPS : Dealer Printed Sign Board. (5) COUNTERS : Metallic/Wooden Counters With Company’s Printing. (6) TABLE-CHAIR : Moulded Furniture along Umbrella’s various restaurants. (7) WELL-PAINTING:Outlet containing Co. painting on the wall for promotion. (8) SGA : Sales Generating Assets.*Refrigerator. * Ice Boxes (9) RACK : Various types of racks holding the display of the company’s product.
  23. 23. MARKET PROMOTION ANALYSIS (Special Supervision –Inspection Report in MODI NAGAR MARKET) The research approach being followed in Modi nagar Market was regarding the supervision of various outlets, which is one of the major consumable highways. There was a special inspection done onto the statistical need of various sales promoting accessories being provided to the retailers. The distributing unit cover’s the over all supply to the market with his efficient sales force in application. The unit here has a daily requirement of 550 carets of 200ml &300mlof Coke, ThumpsUp, Fanta, Limca and Sprite. Whereas the pet consumption is concerned the scenario is:- • 500 ml – 65 packs. • 2 ltr. - 30 packs. • 1ltr. - 70 packs (Kinley- Distelled Water) # LIMCA being the most demanded range of soft drink.
  24. 24. TABLE-1 Various consolidated figures representing the share of both COCA-COLA and PEPSI on Noida Sec(37) to Surajpur Highway. CATEGORY COCA-COLA PEPSI GSB 8 20 DPS 7 18 COUNTER 9 23 TABLE-CHAIR & UMBRELLA 2 7 WALL PAINTING 13 35 SGA 35 43 RACK 18 24 Total Number of outlets: 71 Major Areas covered under this Highway: • Surajpur Dadri Road (market). • Sutyana. • Haldwani Crossing. • Bhangel. • Kulesra. • Salarpur. • Baraula. • Noida(sec.37-49).
  25. 25. TABLE-II Similar consolidated data in respect of the market share of both COCA-COLA and PEPSI on Vijay Nagar (check post) to Garh Ganga. CATEGORY COCA-COLA PEPSI GSB 83 67 DPS 23 15 COUNTER 39 42 TABLE-CHAIR & UMBRELLA 11 6 WALL PAINTING 59 41 SGA 64 53 RACK 73 61 Total Number of outlets : 121 Major Areas covered under this Highway: • Vijay Nagar. • Masuri. • Hapur. • Pilakhwa. • Gulawati. • Garh Ganga.
  27. 27. Glow Sing Board The study here revealed that usually the outlets had GSB’s distribution at a large scale but they did not cover the entire area. Coca-Cola though had a good promotional share but Pepsi was not far behind and also gave a challenging stand. Being an aera that did not had an outstanding exposure the outlets were of small entity and were provided with the GSB. COCA-COLA 83 PEPSI 67 Dealer Printed Sign Board: Under the area study it could be seen that both Coca-Cola as well as Pepsi did not provided DPS’s at various outlets, as it is a general view that they are being given at large consuming outlets. But taking in consideration the market potential here not many of the outlets could claim such accessories. In all the distribution of it is not lead emphasis thereon by the companies COCA-COLA 23 PEPSI 15
  28. 28. Counters:- During the study it was observed that over the entire the market region under this category the COCA- cola CO. FELL BEHIND Pepsi and also the total distribution was not even . many of the outlets were at commercial places that induced the framework of their own private interior where there is no scope of counters. They are most needed at “Pan Bhandar, Juice Corner or Sweet Shop” which are rarely big consumption units. COCA-COLA 39 PEPSI 42 Table- Chair- Umbrella:- While covering the entire area it was very surprising to know that the companies had no satisfactory performance out there . Coca-Cola having plant over this route also did not lay any outstanding effort. This category resembled a very meagre growth here and hardly makes any sense providing it to such places where you cannot bring about any difference in the promotion of the product. COCA-COLA 11 PEPSI 6
  29. 29. Wall Painting : On the survey duration it was observed that in such areas where after every (5-7) a new small started, where we generally know that people follow signs & painted advertisement. Thus a close stand by Pepsi was seen and the outlets experienced mostly either Coca-Cola or Pepsi. But the share of it could not be seen much as the people are already aware of both the enterprises. COCA-COLA 59 PEPSI 41 Sales Generating Asset:- They are the assets being categorized, which play a vital role in preservation of the products – refrigerators or iceboxes. Many of the outlets do had them in abundance but others had to only feed upon one of them . this being the most essential requirement for outlet one who stocks soft drinks as no one is going to purchase a hot one. A handsome distribution follow onto the outlets can be seen which also sometimes make people aware of advertising being done through this source. COCA-COLA 64 PEPSI 53
  30. 30. Racks:- The entire survey dealt with the distribution of accessories, which are one of the essential ones to have an impressive promotional outlay. Among the best reviewed one was “racks” which have been provided at non-accountable reason, which shows that people may place it at & mark as symbol promotional induction to the retailers. COCA-COLA 73 PEPSI 61 They compete vigorously, and at the same time they cooperate smartly with their strategic partners in their supply and distribution chain. Every company has a set of department to viewing it as a system for managing core process. Company must manage and master such basic process order generation to order fulfilment. In modern marketing discipline mass market are fragmenting in micro- market, multiple distribution channel are replagceing single channel, price discounting and sales promotion.
  31. 31. Designing the best marketing mix “To make a sale” there is growing emphasis on designing the best relationship mix for winning and keeping customer. Good customer are an asset which , when will managed and served, will return a handsome lifetime income stream to Co. Relationship marketing is not only a company drives to bond better with their consumer. Companies also develop mutually profitable relationships with their retailer, supplier and distributor. If the Co. squeezes its retailer profit unduly, it forces too much product on distributor the Co. will fail. Smart companies check & balance with their supplier and distributor in the drive to better serve their ultimate customer. And marketing, at its best goes beyond meeting existing customer needs. Good company will meet needs; and great companies will create a market. TABLE-III Marketing promotional data being collected through daily survey as to the scenario of both Coca-Cola and Pepsi and inspecting the need of the promotional accessories therefore. The entire highway market being studied started from Sumam theatre to Kadrabad. CATEGORY COCA-COLA PEPSI NONE GSB 39 15 4 DPS 31 9 18 COUNTER 28 27 3
  32. 32. TABLE-CHAIR & UMBRELLA 9 5 44 WALL PAINTING 31 17 10 SGA 29 26 3 RACK 27 29 2 Total Number of Outlets: 58 Major Market Area Covered on the Highway: Suman Theatre. Govindpuri. Rajchopla Kadrabad.
  33. 33. Glow Sign Board:- Being a small market equipped of various small shops and cool corners they mostly possessed the GSB’s. while at some big outlets there may be 2 or more. Taking into consideration this market Pepsi has a high competitive share with Coca-Cola, which need to be taken care of. 0 10 20 30 40 COCA- COLA PEPSI NONE GSB Dealer Printed Sign Board:- Many of the outlets were provided the DPS’s while the market promotional activities had been conducted. Pepsi though behind Coca-Cola in this category had not lead down much emphasis on it. Usually found at bigger outlets that do bulk stocking of the product as the company’s advertising is being featured on it . 0 10 20 30 40 COCA- COLA PEPSI NONE DPS
  34. 34. Counters:- Both Pepsi as well as Coca-Cola go hand in hand under this criterion. On regular basis the counters of Coca-Cola were distributed earlier and Pepsi made its distribution later, which was observed as a result that the later ones seemed new. The counters do add to the outlets initial impact at the consumer, which attracts him to make the purchase. 0 5 10 15 20 25 30 COCA- COLA PEPSI NONE COUNTER Table- Chair-Umbrella :- In the market of Modinagar there’s a limited scope for these accessories as they are found mostly at open air restaurants having large premises. The restaurants here are not much sophisticated with gardens or compounds having place to put in Umbrellas, etc. also a major share of the market is left untouched by such provisions that may flourish in near future. 0 10 20 30 40 50 COCA- COLA PEPSI NONE TABLE-CHAIR & UMBRELLA
  35. 35. Wall-Painting:- Various sweets corners and cooling points at the market bore it. Recently Coca-Cola revived the entire market painting and turned the whole market in “red”. Thus , at various Pepsi outlets even the retailers got their display and walls painted red with Coca-Cola’s advertisements. 0 10 20 30 40 COCA- COLA PEPSI NONE WALL PAINTING Sales Generating Asset:- there is high demand of refrigerators by the retailers, as they want to have an increase in the number of SGA’s to stock more. Both Coca-Cola and Pepsi had already provided each at their respective corners. Under this segment both of them have near about stand this being one of the basic necessities. 0 10 20 30 COCA- COLA PEPSI NONE SGA
  36. 36. Rack:- Under this category it’s Pepsi who has taken the lead as a result of their recently organized rack distribution scheme. The retailers in return had to purchase additional stock for display on the racks in turn of PET bottles. They do play a major role in the display of the product outside the cool corners and helps in attracting the consumers . 0 10 20 30 COCA- COLA PEPSI NONE RACK
  37. 37. BIBLIOGRAPHY • Kothari Philip, Marketing Management, Prentice Hall India, New Delhi, 2004. • Kothari C.R, Research Methodology, Wishwa Prakashan, New Delhi, 2002. • • •
  38. 38. CONCLUSION 1) The various retailer had an enormous demand for better GSB’s and in many cases of DPS for a better, impressive outlet look to attract consumers. 2) The endless demand of visicoolers in order to store large quantity of stock as a part of marketing and distribution promotional function of the company is studied therein. 3) The steady flow of the company’s promotional accessories could be felt irrespective of the consumption of the outlets of the product. For example: racks, counters, sign boards, etc. 4) In a competitive environment the company got to study the schemes of their closest rivals, which they followed and in return fulfilled, the needs regarding their outlets set up. 5) Timely check up of the proper usage of the Co’s assets (SGA) being made as well as their malfunctioning is rectified. 6) Misuse of the Coca-Cola SGA’s should be brought into consideration as a retailers, stock, other companies, stock and depreciate the demand of the source company. 7) The archrivals product study can be entertained from the retailers and the privilege on their part is known which helps in formulation of better marketing promotional scheme’s 8) Pepsi’s regular stockholders be traced and break up by providing motivational introductory offers enhancing the market capture.
  39. 39. 9) Coca-Cola should try to make arrangements so that the marketing representatives would visit the retail outlets regularly and try to solve the retailers, as well as the distributors, problems which they usually face during the peak season. 10) Better efficient sales representatives be appointed to update the retailers about the schemes in comparison to Pepsi. This would encourage a curiosity regarding the Coca-Cola schemes among them. 11) The complaints of the retailers be studied and paid attention of the highest degree to ensure better market capturing.
  40. 40. EXPLANATION 1) GSB- GLOW SING BOARD: It is a display board or hoarding bearing the promotional advertisement of the respective product of the company. The companies for their product promotion and sales enhancement usually provide them. 2) DPS-DEALER PRINTED SIGN BOARD : Display boards of the same nature with an additional feature of the retailer’s name or the outlet’s name being mentioned on them , in order that the sponsors bear the value –addition on the behalf of the company.usually provided to stockist who have large consumption of the product. 3) COUNTERS: Wooden or metallic framework provided by the company to the exclusive outlets which either stock in bulk or which are particular brand outlets. The company in return promises a certain fixed stock supply
  41. 41. for a certain time period. The counters bear the company’s advertisements as a source of marketing promotion. 4) TABLE- CHAIR- UMBRELLA: moulded furniture of plastic is being provided at various open-air restaurants or “dhabas” for the convenience of the customers while their visits. In return the company achieves product promotion as well as retailers satisfaction. They can also be seen at various street side cafes and juice corners. 5) WALL PAINTINGS: painting of the brand advertisements on the walls of the outlets, which in result attract and remind the consumers about the product. This makes the consumer aware of the popularity and promotional effort made on the behalf of the company. 6) SGA-SALES GENERATING ASSET: Under this category we generally head the refrigeration, visicoolers, and even the old designed iceboxes. On the other hand it enables to motivate the retailers for better sales on company’s behalf.
  42. 42. 7) RACKS: they are different types of plastic or material holders, which are used for the display of the pet and other glass bottle. This creates a healthy exposure of the products, remembrance to the ultimate consumers. These all help in generating the company’s brand image at different levels: • Market • Retailers • Consumers
  43. 43. Glow Sign Board : Distribution:- As per the observation of the route here it can be seen that PEPSI has made a nice promotional effors in distributing its GSB’s on various outlets. This has made the market capturing for Coca-Cola tougher and a regular supply from their “Devyani Bottling Plant” proved effective on the behalf of their services to retailers. There is a fruitful effort made by the Pepsi in order to turn around the entire highway “blue” and it can be proved up to some extent apart that Coca-Cola has also played in it’s role. COCA-COLA 8 PEPSI 20
  44. 44. Dealer Printed Sign Board: While the survey was being done on the entire highway it revealed that at various bigger outlets Pepsi has already provided DPS’s. in order to breakdown its retailers and the distribution Coca-Cola has to make indigenous efforts. The retailers need something “extra” to be convinced to stock Coke in addition to Pepsi; overall there is a steady promotional effort to be put in. an outcome of this that can be felt is that at bigger consumable outlets there is capture of Pepsi. COCA-COLA 7 PEPSI 18
  45. 45. Counters:- The coverage of the highway showed that there was not much emphasis on the distribution of the so called “counters” as the market here is not promising. But then too the study revealed that Pepsi had provided it to the outlets, which are at places that prove prominent for the promotional activity. Coca- Cola came out with a poor promotional concern, as the potential held by them is weaker at the entire area. Also there could not be seen considerable number of general stores and open-air restaurants all along the highway. COCA-COLA 9 PEPSI 23
  46. 46. Table- Chair &Umbrella:- During the survey it was observed that the supply of these sorts of accessories is very meagre, as we could not view any street side restaurant and halting corner. This survey did give a dignified figure that there ‘s no such effective requirement but then too Pepsi reported to be dominating. It revealed that Coca-Cola did not make any efforts to capture the highway here as the potential of soft drinks has not yet gained pace here. COCA-COLA 2 PEPSI 7
  47. 47. Wall- Painting:- Usually the outlets here had wall painting that enhanced the people to memorize about the refreshment by having a drink and get exhausted. It’s basically to attract people in order that they are able to recognize a suitable place for them to have a coke or Pepsi. Also a very common type of promotional activity adopted by the companies to attain popularity. Coke though tried its level best to outrage Pepsi but was not successful and resulted in unsatisfactorily. COCA-COLA 13 PEPSI 35
  48. 48. Sales Generating Asset:- Under this category the companies head the various instruments that are useful in the handling of the product in a very feasible manner- refrigerators, iceboxes,etc. both Coca-Cola and Pepsi provided them on schemes being an essential requirement for sustaining of such products but the later one had the coverage area in a better way. COCA-COLA 35 PEPSI 43
  49. 49. Rack:- They are the plastic moulded or metallic framed structures that are used for holding the glass bottles or even the pet for display. They are ones that is a healthy scope for display needed or sometimes for the beautification of the outlet. COCA-COLA 18 PEPSI 24
  50. 50. HISTORY OF COCA- COLA Dr. John S. Palmerton in Atlanta, Georgia invented Coca-Cola in May 1886. the name “Coca-Cola” was suggested by Dr. Pemberton’s bookkeeper, Frank Robinson. He penned the name Coca-Cola in the flowing script that is famous today. Willis Venable first sold Coca-Cola at an average of nine drinks a day, adding up to a total sales for that year of $50 since the year’s expenses were just over $70, Dr. Pemberton took a loos. Today products of the Coca-Cola Company are consumed at the rate of more than one billion drinks per day.
  51. 51. WHAT IS THE COCA-COLA The Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non- alcoholic beverages, which we sell to bottling and canning operations, authorized fountain wholesalers and some fountain retailers. We also market and distribute juice-drink products. In addition, we have ownership interest in numerous bottling and canning operations. The Coca-Cola company exists to benefit and refresh everyone who is touched by our business. Founded in 1886, our company is the worlds leading manufacture, marketer and distributor of non-alcoholic beverage brands. Our corporate headquarters are in Atlanta, with local operations in nearly 200 countries around the world. Our local strategy enables us to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is the reflection of which they are where they live, how they work and play , and how they relax and recharge. Whether you are a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a
  52. 52. child in Peru asking for a juice drink , but also to contribute to communities around the world through our commitments to education, health, wellness and diversity. We strive to be a good neighbour, consistently shaping our business decision to improve the quality of life in the communities in which we do business. It’s a special thing to have billions of friends around the world and never forget it. ADVERTISING SLOGANS 1886 : Drink Coca-Cola 1904 : Delicious And Refreshing 1905 : Coca-Cola Revives And Sustains 1906 : The Great National Temperance Drink 1917 : three Million a day 1917 : Three Million A Day 1922 : Thirst Knows No Reason 1925 : Six Million a Day 1927 : Around The Corner From Everywhere 1929 : The Pause That Refreshes 1932 : Ice-Cold Sunshine 1938 : The Best Friend Thirst Ever Had 1939 : Coca-Cola Goes Along 1942 : The Only thing Like Coca-Cola is Coca-Cola itself . it’s The Real Thing
  53. 53. 1948 : Where There’s Coke, There’s Hospitality 1949 : Coca-Cola…..Making Good Things Taste Better 1952 : What you Want Is A Coke 1956 : Coca-Cola…..making Good Things Taste Better 1957 : Sign Of Good Taste 1958 : The Cold, crisp Taste of Coke 1959 : Be Really Refreshed 1963 : Things Go Better With Coke 1970 : It’s The Real Thing 1971 : I’d Like To Buy The World a Coke 1975 : Look Up America 1976 : Coke Adds Life 1979 : Have A Coke and A Smile 1982 : Coke Is It! 1985 : We’ve Got a Taste For you (Coca-Cola And Coca-Cola Classic)…..American’s Real Choice. 1986 : Catch the Wave (Coca-Cola) Red White And You (Coca-Cola Classic) 1989 : Can’t Beat The feeling 1990 : Can’t Beat The Real Thing 1993 : Always Coca-Cola 2000 : Jo Chaho HO Jaye Coca-Cola Enjoy 2002 : Thanda Matlab Coca-Cola (Amir Khan) 2004 : Piyo Thanda Jiyo Thanda (Coca-Cola, Aishwarya Rai) 2005 : Rangle Dil Khol Ke! (Fanta, Rani mukherjee) : Lime ‘n’ lemoni (Limca, Model)
  54. 54. SOFT DRINK PENETRATION IN THE UK VIS-A-VIS INDIA CSDpenetration in Britain, a nation of 58 million, is almost 100 percent . there is nowhere that marketers can go with their cans. Compare this to India , an emerging market of 1 billion people where penetration at national level is 13% . in rural India, it is less than 5%. The per capita consumption of soft drinks (calculated as litres of soft drink per head per year) in the UK is 203 while in India it has moved to nearly 7 from less than 1 pre-1990. there is plenty of room still for an upsurge since this level is lower than other emerging economies in South Asia, such as Pakistan at 19, Srilanka at 23, the Philippnes at 175 and Thailand at 100. AFFORDABILITY: A KEY ISSUE IN INDIA Affordability is the primary reason behind the low penetration of CSDs in India. They attract high taxes, being treated as luxury goods by the Indian government. This makes them one of the most expensive impulse foods for single serve consumption vis-à-vis others in the same category like chocolates, biscuits, ice-creams and wafers, all of which have a much lower entry price point. This makes CSDs unaffordable to a vast majority of Indian consumers, a country with per capita income of $300
  55. 55. This apart, CSD consumption is extremely seasonal, skewed to summer and mainly outside the home. Since a large proportion of women are confined to home, soft drink penetration among women is much lower . also , India with long spells of scorching heat has problems with cooling infrastructure. fast moving consumer goods outlets in India, soft drink outlets make up less than one third, many of whom don’t own electrical cooling equipment. MORE FIZZ IN INDIA THAN IN THE UK The low penetration of CSDs in India presents a huge opportunity for Coca-Cola and Pepsi (these are the only two beverage companies in India) to grow the category. Coke , for certain ,is pushing the brand in emerging markets like India and China rather than in mature markets like the UK. For instance in India, both are focused on extending distribution into rural regions. This explains why they spent millions of rupees introducing smaller packs, 200ml bottles, at a cheaper price. Developing low cost home packs and creating numerous occasions to drink CSDs are also part of the new strategy. CSD GROWTH CHART: INDIA The soft drinks market in India has registered significant growth rates after the liberazation of the economy in the early 90’s . this phase of liberalization brought PepsiCo to India’s shores in the 1989 and Coca-Cola for the second time in 1993. (it had exited from the country in 1977 when the then socialist government obliged foreign companies to shed majority stakes in favour of growth , in healthy double digits , through the first half of the 90’s but has declined to single digit level in the last few years.
  56. 56. This is due to three reasons: the general economic slowdown, frequent price increases in the last 3 years and the emergence of cheaper alternatives such as powdered concentrates and bottled water. COKE& PEPSI IN INDIA: A BRUISING COLA WAR Coke and Pepsi together spend 40 million pounds annually in outdoing one another. Even though the potential of carbonated drink is enormous in India, coke is not banking on CSDs alone to fuel growth. A lesson well learn from developed markets like the UK. It has entered new areas like kinley water , Georgia tea and coffee and its Sun fill dilutable drink. These are its biggest growth engines in India at the moment. In fact, from single-serve water bottles, Coke has now moved into the 20-litre home packs, which has given it substantial market share. It is number two in the water business next only to the home-grown Bisleri. Pepsi , like its counterpart in the UK, has been a laggard in this respect. Even though it has launched Aquafina water in India , Pepsi does not seem to be pushing it. It has no presence in the dilutable category. But in contrast to the UK, the Pepsi brand has a huge presence in India , both in volume and brand image. In fact, its exemplary marketing acumen took it ahead of Coke in the early days and , even today, Pepsi and Coke are running neek and neck in cola shares-explaining the high pitch cola war on the Indian soil.
  57. 57. LIMITATIONS The HIGHWAY SURVEY being conducted as the project work under Hindustan Coca-Cola Beverages Pvt. Ltd. Mainly dealt with the following limitations:- 1. The survey report that was conducted had a pre-defined boundation of interviewing the retail outlet owners. It’s based on simple observational analysis which may lead to deflection at the time of conclusion arrival. 2. The survey sheet being designed had a limited scope of primary data coverage only. It did not take into consideration the other availability of supply and Co ground on which it decided upon the provision of distribution of the promotional accessories.
  58. 58. 3 During the entire survey the retailers willingness for acquiring the accessories in accordance with the schemes followed with them could not be noticed. This could be one of the reasons of the non-appropriate promotional efforts in making an awareness among the customers 4 . The data regarding: • How the accessories can be acquired ? • When the accessories did come into distribution channelling? • Were the retailers informed on the distribution? • What encouraged them to posses the accessories? • Are they enjoying back up from the company for promotional activities? 5. The time constraint was also prevalent as there was not abundant time for a detailed study to be conducted among the retailers and dealers.
  59. 59. 6. The financial limitations could also be felt as the funding regarding the survey was not subjected which lead to a lack in an in-depth study to be undertaken. RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them . it is necessary for the researcher to know not only the research methods/techniques but also the methodology used. Researchers not only need to know how to develop certain indices or tests , how to calculate mean or median or mode, how to apply particular research techniques but must also know which of these methods or techniques are relevant and what would they mean and indicate and why. Research process consists of series of actions or steps necessary to effectively carry out the research.
  60. 60. RESEARCH DESIGN: The function of research design is to provide for collection of relevant evidence with minimal expenditure of time effort and money. I followed the census method as I did daily route riding along with the executives and the salesmen. I got opportunity to meet and interact with each one of the retailers and closely came to know specific need of the promotion of Coca-Cola in the market as a whole. I covered the distribution area under highways at Ghaziabad, Modinagar and little area of NCR region. Under the supervision I got number of relevant data from on spot inspection and personal observation. METHODS OF DATA COLLECTION: Observation and interaction with the retailers provided me in depth knowledge about the availability of changes in promotional items provided by Pepsi and Coca-Cola by the distributors. I collected all vital data from the outlets visits and survey during my summer training and which would be of high consideration regarding the designing of the coming years marketing budget by the Coca-Cola Company.
  61. 61. The survey sheet was instantaneously equipped of data duly observed by me and in a systematic manner. The data thus inculcated is through Primary Source by Personal Interviews, Enquiries and Observation. The responses thus received were also encouraging on my behalf and as well as the company. 1.) MARKETING RESEARCH OBJECTIVES: a.) To undertake a market study to know the Coca-Cola promotion on the highways. b.) Comparative sales promotion (accessories) analysis with regard to Pepsi and Coca-Cola. 2. TYPE OF STUDY : EXPLORATORY 3. RESEARCH AREA : GHAZIABAD, MODINAGAR AND NOIDA 4 SOURCE OF INFORMATION : (PRIMARY) In this type of data collection mode the interviemwer uses the wording and order that seems most appropriate in the context of each interview. These interviews are useful in obtaining a clearer understanding of the problem and determining what areas should be investigated.
  62. 62. 5 DATA COLLECTION INSTRUMENT : (SURVEY SHEET) There are several ways of collecting the information considerably in the context of money costs, time and other resoueces at the disposal of the researcher. I collected data for my project work through the medium of Survey Sheets In this method I got the prepared sheets from the company comprising of relevant questions related with my project. Then I contacted respondents on their shops along with the sheets for collecting the information. 6.) RESEARCH APPROACH: (SURVEY METHOD) 7.) SAMPLING PLAN: Sample design is a definite plan determined before any data are actually collected for obtaining a sample for a given population. The sample design to be used must be decided by the researcher taking into consideration the nature of inquiry and other related factors. I have paid attention on the following points while designing the sample: a) Target population
  63. 63. b) Sample Unit c) Sampling Size d) Sampling Method a). TARGET POPULATION: the population of the study consisted of retailers and dealers. Target population was taken from the cities of Ghaziabad , Modinagar and Noida. b). SAMPLING UNIT: Random sampling was chosen that is where any outlet of the whole population was likely to be selected as any other outlet that is all the outlets of the population have equal chances. Shops pursuing promotional tools (both dealers and retailers) in Ghaziabad, Modinagar and Noida cities. c). SAMPLE SIZE: a total of 250 shops were observed from the cities –Ghaziabad, Modinagar and Noida.
  64. 64. d). SAMPLING METHOD: Purposive Sampling QUESTIONNARE : Route No. :- Name of outlet :- Contact person : Address :- 1 . Type of Channel:- (a) Eatery (b) Grocery (c) Convenience (d) Institute (e) Other
  65. 65. 2. Infrastructure of retail outlet :- (A) Pepsi Coca-Cola (a) Empty (i) (i) (b)Vision/oye (ii) (ii) (c ) Ice box (iii) (iii) (d) Signage (iv) (iv) 3.Pack availability of a daily average sale :- (B) Pepsi Coca-Cola (a) 200ml (i) (i) (b ) 300ml (ii) (ii) (c ) 500ml (iii) (iii) (d) 2000ml (iv) (iv)
  66. 66. (e) Aquafina/Kinley (v) (v) 4. Facilities Preovided by company: ( c) Facilities Pepsi coca-Cola (a) Cash Discount (i) (i) (b) Credit (ii) (ii) (c) Empty loan (iii) (iii) (d) Other (iv) (iv) 5. Types of Status: (a) Pepsi monopoly (b) Coca-Cola monopoly (c) Mix 5. Which company product you sell more? (a) Pepsi (b) Coca-C0la (c) Both 6. Why you prefer Pepsi /Coke or mix (please. Rank it): (a) Consumer demand (b) Service (c) Scheme (d) Personal relationship with company employee (e) Facility provided by the company (f) Relation with root agent (g) Company staff frequently visit 7. Retailer satisfaction regarding service:
  67. 67. (i) which company provide better delivery a) Pepsi (b) Coke (c) Both (d) None (ii) which company vehicle arrives on time: (a) Pepsi (b) Coke (c) Both (d) None (iii) which company provides better service in emergency (a) Pepsi (b) Coke (c) Both (d) None (iv) which company’s vehicle is more regular in visit: (a) Pepsi (b) Coke (c) Both (d) None 9. Retailer satisfaction equipment: (i) which company provides better scheme (visi/oye) (a) Pepsi (b) Coke (c) Both (d) None (ii) Which company provides better scheme for ice box: (a) Pepsi (b) Coke (c) Both (d) None
  68. 68. 10. Retailer satisfaction scheme: (i) Which company comes out with good schemes: (a) Pepsi (b) Coke (c) Both (d) None (ii) Which company executes his marketing scheme: (a) Pepsi (b) Coke (c) Both (d) None (iii) Which company provides better option for marketing scheme: (a) Pepsi (b) Coke (c) Both (d) none (iv) Which company offers other more trade scheme: (a) Pepsi (b) Coke (c) Both (d) None (v) Which company offers more value trade scheme:
  69. 69. (a) Pepsi (b) Coke (c) Both (d) None 11. Regular satisfaction relationship: (i) Which company route agent behaves more supportively and professionally: (a) Pepsi (b) Coke (c) Both (d) None (ii) Which company official visits more frequently: (a)Pepsi (b) Coke (c) Both (d) None (iii) Which company officer provide better solutions: (a) Pepsi (b) Coke (c) Both (d) None 12. Problem (if any): 13. Suggestion (if any) : RETAILOR ‘S SIGNATURE
  70. 70. :
  72. 72. Personal Manager HR Executive MARKETING MANAGER ORGANISTION STRUCTURE Department Sales Business Unit head Market Unit Head Unit Head Territory Development Manager Accounts Development Coordinator Customer Executives Department Personal DepartmentMarketing Coordinator Department Finance Unit Finance Controller Financial services manager
  73. 73. STUDENT DECLARATION I hereby declare that the research project entitled 'MARKETING STRATEGIES OF COCA-COLA submitted in partial fulfillment of 'MASTER DEGREE IN BUSINESS ADMINISTRATION' is of my original work and not submitted for the award of any other Degree, Diploma, Fellowship or other similar TITLE or PRIZE.
  74. 74. TABLE OF CONTENTS Preface • Preface • Acknowledgement • Introduction • Coca Cola’s Strategy to Reach Increased Number of Customers • Coca Cola India - Our Vision • Objectives of the Study • Highway Analysis • Survey Terminology • Market Promotion Analysis • Findings & Analysis • Bibliography • Conclusion • Explanation • Limitations • Research Methodology
  75. 75. • Questionnaire