term paper on coca cola demand and supply constraints . and contribution in nepal eartquake when they distributed free bottles of water .

1. A
PROJECT REPORT
ON
DEMAND AND SUPPLY CONSTRAINTS OF COCA-COLA
SUBMITTED TO
AMITY UNIVERSITY MADHYA PRADESH
IN THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR
THE AWARD OF DEGREE
BACHELORS OF COMMERCE
2015-2018
UNDER THE GUIDANCE OF
Dr. ANAND KUMAR SHRIVASTAVA
SUBMITTED BY
SHIVANSH PATANKAR
B.COM (H) SEMESTER III

2. Amity Business School
CERTIFICATE
It is to certify that the Summer Assignment titled “DEMAND AND SUPPLY
CONSTRAINT OF COCA-COLA” which is submitted to Amity Business School,
Amity University Madhya Pradesh, in partial fulfilment of the requirement for the
award of the degree of Bachelor of Business Administration , is an original
contribution with existing knowledge and faithful record of work carried out by
him/her under my guidance and supervision.
To the best of my knowledge this work has not been submitted in part or full for any
Degree or Diploma to this University or elsewhere.
Dr. ANAND KUMAR
SHRIVASTAVA
(Assistant Professor)
Amity Business School
Amity University Madhya Pradesh

3. Amity Business School
DECLARATION
I, RIYA DUBEY student of B.Com 3rd sem. hereby declare that the dissertation titled
“DEMAND AND SUPPLY CONSTRAINT OF COCA-COLA” which is submitted by me to
Amity Business School, Amity University Madhya Pradesh, in partial fulfillment of
requirement for the award of the degree of Bachelor of Business Administration in, has not
been previously formed the basis for the award of any degree, diploma or other similar title or
recognition.
SHIVANSH PATANKAR
B.COM (H)

4. ACKNOWLEDGEMENT
Firstly, I would like to express my sincere gratitude to my mentor Dr. ANAND
KUMAR SHRIVASTAVA for the continuous support for my research paper and for
his patience, motivation and immense knowledge. His guidance helped me at all
times during the research and writing of this term paper. I could not have imagined
having a better advisor and mentor for my research study.
I thank my fellow classmates for the stimulating discussions, endless debates and on
many editorial works and for all the fun we had in the last few weeks.
Finally, I sincerely thank my parents who provided me with their expertise knowledge
and advice. The result of this research paper would not have been possible without
all of them.
SHIVANSH PATANKAR
B.COM (H)

5. TABLE OF CONTENT
S.NO. Contents
1. Introduction
2. Review of literature
3. Research Methodology
4. Objectives
5. Analysis & Interpretation
6. Conclusion
7. References

6. DEMAND AND SUPPLY CONSTRAINT OF
COCA-COLA

7. ABSTRACT
A carbonated soft drink which is sold in more than 200 countries all around the world
in stores, in restaurants and vending machine internationally. John S. Pemberton in
1886 invented a coca cola wine (pemberton’s French wine coca) which later also
known as coca cola. It was first sold as medicine as American think that carbonate
water is good for body and don’t have any side effect on the human body.It was also
simply refer as coke. The coca cola company gain registered trademark in United
States since march27, 1994.Asa gigs Candler was that business man who brought
the coca cola in the business and due to his business ideas and tactics coca cola
dominate the world of soft drink all over the world.

8. RESEARCH METHODOLOGY
The study is based on secondary data, collected form NEWS, website of Coca-Cola,
and from the internet. In this research we study about the different barriers which are
faced by the Coca-Cola in their demand. In this we have study about the 2 case
which tells about the demand constraints of coca cola. We also study about the
supply constraint of the coca cola.
The objective of the research is to find out hthe solution of the constraints and the
barriers which are coming in the demand and supply of coca cola company
Research is done on the various alternative to handle the situation created due to
reports made by CSE against coca cola. This research tells about the change in the
demand and supply curve of coca cola.

9. INTRODUCTION
A carbonated soft drink which is sold in more than 200 countries all around the world
in stores, in restaurants and vending machine internationally. John S. Pemberton in
1886 invented a coca cola wine (pemberton’s French wine coca) which later also
known as coca cola. It was first sold as medicine as American think that carbonate
water is good for body and don’t have any side effect on the human body.
It was also simply refer as coke. The coca cola company gain registered trademark
in United States since march27, 1994.
Asa gigs Candler was that business man who brought the coca cola in the business
and due to his business ideas and tactics coca cola dominate the world of soft drink
all over the world.
Frank Robinson was the bookkeeper and that person who scripted the name coca
cola which is now the brand logo of the company.
The first sale was made in Atlanta, Georgia on May 1886. In first eight month of the
sale only thirteen drinks of Coca-Cola was sold each day. On May 29 John S.
Pemberton made first advertisement in Atlanta. Asa Griggs Candler made John S.
Pemberton his partner and setup his business and made strategies to make the coca
cola most valuable brand and successful brand in the world. Sales of first year was
in the loss as they sold drinks at $50 but it cost $70 to John S. Pemberton.
The soft drink contained extract of caffeine-rich nuts as well as cocaine. The most
different about the coca cola was its taste, the taste of coca cola was vast different
from other drinks and due to which the sale of coca cola is more in Africa and South
Asia. More than 60 % of sale of coca cola are from these continents. Moreover the
coca cola has also deal with many beverages company for the sale of their product.
The coca cola company also made several product in the umbrella of coke are Diet
coke, caffeine-free coca cola, coca cola vanilla, coca cola Zero and special edition
with lemon and many more.

10. In this project we are going to deal with the demand and supply constraints if coca
cola. In which we will discuss about what were the barriers was in front of coca cola
regarding their demand and their supply.
We will also discuss about the “coca cola pesticides controversy” and coca cola
plant banned case in Indi. In this project we will get to know about some alternatives
to handle these situations.

11. REVIEW OF LITERATURE
DEMAND AND SUPPLY CONSTRAINTS OF COCA-COLA
www.slideshare.net/abhishekkumar1105/demandsupplyelasticityofcocacola-1
1.
2.
Sep 2, 2011 - To analyse the supply of coca cola. ... <br />DEMAND ANALYSIS<br
/>DEMAND CURVES<br />Demand curve refers to the quantity of the good ...

12. Basic concept of demand and supply
Demand curve
It is a graphically representation showing how the demand of the commodity or
services varies with change in price in given period of time. It shows the relation
between price and quantity of the good or product
Law of demand
“It states that higher the rice lower the quantity demanded, and vice versa, other
things remaining constant. That is, given prices of the related good, income and
taste and preference of the consumer, if price of the good increases its quantity
demand decreases, while if price of the good decreases its quantity demanded
increases.”
Factors Affecting the demand of coca cola
Relative goods
These are those good which are much similar to the the product. Relative good are
further classified into two
1. Substitute goods
2. Complimentary.

13. In the case of coca cola there are many substite goods which are in the
market. If the price of coca cola increase and price of other goods remain
same then the demand of coca cola will decreases.
Income of consumer if there is increase in the income of consumer then the
demand of the coca cola will also increases
.
Taste and preference as we know that the of coca cola is much different than other
soft drinks thus taste and preference play an important role in increase of coca cola.
Government policies step reduce the demand of coca cola due to the pesticides
controversy in coca cola thus due to the government policies coca cola has to face
decrease in demand
Time during the festival and other major day the sale of coca cola increase thus time
also play an important role in increase in demand.
Age of population the product of coca cola are consumed by every age group
people thus the factor of age of population does not affect much in the term of coca
cola .

14. SHIFT IN THE DEMAND CURVES
It means that there is any change in the demand of product which is due to change
in the factors other than the price of product.
There could be 2 different type of shift in demad curve
1. Upward shift
2. Downward shift.
In upward shift of demand curve, the demand of product increses but the price of
the product remain constant and there is change in other factors like change in the
time.

15. In downward shift of demand curve, the demand of the product decreses but not
due to the increase in the price but it is due to the change in other factors, like due to
government policies coca cola has to stop the production as they were consuming
lots of water in summer season. Due to which the common people were not able to
grt sufficient amont of water to complete their needs.

16. SUPPLY
In the term of economics, supply refers quantity of good or product that producer will sellat a
fix price when all the factors are remain constant.
LAW OF SUPPLY:
“The law of supply is a fundamental principle of economic theory which states that, all else
equal, an increase in price results in an increase in quantity supplied. In other words, there is
a direct relationship between price and quantity: quantities respond in the same direction as
price changes.”
----------------------------------------
-----------------------------
In the case of coca cola in short run when the price of commodity increases then the
supply of commodity will also increase upto a certain level. But when there is
increase in price of commodity for long term then the demand of the commodity will
decrease down because there are many substitute product are there.
S1
D2
D1
P2
P1
Price
QuantityQ2Q1

17. SHIFT IN SUPPLY CURVE
Shift in the supply curve means there is change in the quantity supply due some
other factors but price remain same
Shift of supply can be of two types
1. upward shift
2. downward shift.
In upward shift of supply curve take place when the supplier is able to supply less
quantity of commodity at the same price.
Example; “decrease in the supply of sugar sue to increase in price and excessive
export of sugar result in decrease in production of coca cola.”

18. In downward shift in supply take place when supplier supply the quatity at the same
price.
Example; “Due to improvement in technology the cost of production decrease and
the supplier are willing to supply at the same price.”

19. Demand constraint of coca cola
Case 1.Pesticides in coca cola by the reportof CSE in 2003
Coca cola problem
The world no.1 brand in the field of soft drink coca cola who has experience the top
brand name in the field of soft drinks over 100 year. Along with their success they
have incurred crises along with them. On august 5, 2003 the coca cola was attached
by the centre for science and environment (CSE). They claim that the product made
in the factories of coca cola and PepsiCo are containing deadly pesticide whichcould
harm the human organism. Due to the consumption of these highly concentrated
pesticides product a person can suffer from diseases such as cancer, birth defects
and serve disruption of the immune system. CSE state that “Twelve major cold
drinks brand sold in and around delhi contain deadly cocktail of pesticides residues”.
PepsiCo and coca cola were said to contain 30-36 times of global standard of
pesticides.
COMPANY’S CHALLENGES
The major challenge of the company was to save the brand image. Coca cola was
having good image in between the customers. Due to the report made by the CSE
customer may decide the NGO is claiming right and these type of fault could be
there in the product of the company.
Due to this report brand image of the coca cola has fallen and economic loss also
take place. Additionally the sale of coca cola was dropped by 30%-40% in just two
weeks. Due this the image of coca cola in other countries may also spoil. And they
have suffer the loss in the market and brand value will also decrease down thus will
also effect on the demand of the products.

20. SOLVING THE PROBLEM
The CSE issued the report of drinking water of the coca cola. The customer of the
coca cola in America and in India lose faith on the brand when the get to know that
the bottles are containing ridiculous pesticides and chemical which could be harmful
for the body of human being. This time it is all about to solve the problem and to find
the alternative to gain the confidence of customer and maintain the brand image.
The step taken by the coca cola was step taking toward their downfall in India, as
they chose to attack the CSE’s credibility. In this type of case majority believes in the
report of NGO’s as they are having faith on them as the multinational companies are
taking aggressive steps against the CSE.
SUGGESTED ALTERNATIVE
Alt1. Coca cola must collaborate with the NGO and decide that third party must
check the sample and reports should be published so tht they can bring back their
image. The report must published and media should regulate the report.
Alt2. Coca cola could go at the path of ignorance. They should ignore all these news
after some time people will not bother about these news until company take
aggressive steps against the CSE.
Alt3. They should plan for the PR campaign. In Belgium coca cola implemented the
PR campaign due to which the brand image in Belgium increases and customer
loyalty also get increased.
PLAN TO BE IMPLEMENTED
Coca cola should go for PR campaign to earn the loyalty of the customer thus
customer can create some faith to the company. And they must go for retest of the
product and thes test should be done by the third party. And the result of the test
should be publish so that tey could regain the image of their products.

21. CASE 2 CocaCola India shuts 3 plants citing.
India need halted. Creation at three plants ahead of the. Top sunny season season,
citing insufficient. Demand, including person to Jaipur the place. Activists have
affirmed water exhaustion.
Alternate plants that were closed need aid in. Andesite Also Meghalaya. Lobbyist.
Muscle to india asset focus (IRC) needed said. Wednesday that a standout amongst
the elementary reasons. To the Conclusion of the Kaladera plant done. Jaipur might
have been the expanded trouble Previously,. Gaining entrance to groundwater
starting with a exhausted aquifer, What's more to causing money related
misfortunes.
Those representative about hindustan CocaCola. Refreshments (HCCB),
CocaCola's. Bottling. Company, said generation during the Kaladera plant needed
been ended due to absence of. Interest in the locale Also not due with charges from
claiming water exhaustion. Those plant need "currently. Suspended manufacturing,"
those agent said.
"We need aid proceeding with the sum other operations at. Kaladera. We
Additionally hold the permit to process. At this plant, which will be confirmation of the
reality that. Ought to there make a change sought after and. Volume, we might use
this idle limit. ". Kaladera may be those fourth Coca-Cola. Plant will face. Lobbyist
recoil over Ecological issues. Those organization's plant during Plachimada on
Kerala. Downed shutters done over 2,800 doctor look assignments led from April 1,
2009 to March 31, 2010 taking after a fomentation there also two plants for
UttarPradesh would. Confronting neighbourhood safety in charges about
groundwater exhaustion.
At four plants would worked by HCCB, the soda maker of US wholly claimed
subsidiary. On. India, Coca-Cola’s. Plants would part between companyowned and
franchisee bottlers, for both working 24 plants. The plant of the kaladera which is
small is mainly supplied to Rajasthan.
Due to the seeking of water in the plant of coca cola the people living surrounding
the plant are not getting enough water so that they can complete their need. You will
shock after knowing that one liter of coke is made up of 3 liter of water which mean

22. to make one bottle 3 bottel of water is consumed which should be consumed by the
villager who are stay near the plant.
Government take various steps to prevent and to conserve water. And to supply the
water to needy one’s.

23. SUPPLY CONSTRAINT
Due the earthquake the bottling plant in Nepal get
crashed. Due to which lost of many glass was take place the factory of
bottling was closed till 10 day after earthquake hit at Nepal. Workers
were not coming on duty and to complete the task as the fear loss life
was their betwwen the employees.Due to this the water supply of coca
cola bottels could not happen for 4 days.
The exucative of the company in the Nepal take yhe initiative and
compete the task and this mission was named as mission 44.

24. CONCLUSION
Coca cola company has to pass many bariers to increase the sale and
to increase the demand of their commodity between the people.They
have made many statergies to sus pass their difficultsituation. But the
other factors also pay an important role in the demand than the price of
commodity.To make their image they have to do many PR campaigns
they have to go through many government policies.

25. REFERANCE
Slideshare.com
Hidustantimes
Cocacolaofficalsite
Economic times