Cafe cuba project 1

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PROJECT REPORT
On
CAN CAFÉ CUBA SUBSTITUTE COKE?
“Submitted in the Partial Fulfillment for the Requirement of Post
Graduate Diploma in Management”
By:
Name:-Harshit Behki
ROLL No.:- 132
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL
KALKAJI, NEW DELHI

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DECLARATION
I, hereby declare that the project report under titled “CAN CAFÉ CUBA SUBSTITUTE
COKE: Comparative Study of Parle Agro and Coke?” submitted is a record of an original
work done by me under the guidance of Dr. Saniya Chawla, faculty member Jagannath
International Management School.
(Signature of the scholar)
Place: JIMS Harshit Behki
Date: Enrollment No. : 132

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ACKNOWLEDGEMENT
With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor
Ms. Shiva Kaul, for his valuable guidance and confidence he installed in me, that helped me in
the successful completion of this project report. Without his help, this project would have been
distant affair. His thorough understanding of field and professional guidance is indeed of immense
help to me. I am also thankful to the faculty members of our institute who cooperated with me and
gave me their valuable time.
Place: -JIMS
Date Signature of Scholar
Name: - Harshit Behki
Enrollment No: - 132

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TABLE OF CONTENTS
S.no. Topic Page.No Signature
1. INTRODUCTION
1.1 Beverage industry
1.2 Parle Agro industry
1.3 SWOT analysis
1.4 BCG Matrix of Parle Agro.
1.5 CAFÉ CUBA
1-13
14-18
19-20
21-24
25-28
2. COCA COLA
2.1 COCA Cola
2.2 SWOT Analysis of cocacola
2.3 BCG Matrix of cocacola
29-37
38
39-41
3. Objectives 42
4. Research methodology 43
5. Fact and findings 44-57
6. Recommendation 58
7. Conclusion 59
8 Bibliography 60

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EXECUTIVE SUMMARY
In this report we have done a research which indicates about the market presence of CAFÉ
CUBA which is a product of Parle Agro group and the Coca Cola the most renowned company
in the world.
In this report we will be using various tools and technique to find out which is the best company
and what can be the future of the both the products. We would be using SWOT analysis
(Strength, Weakness, Opportunities and Threats) and BCG matrix which is conducted by Boston
Consultancy group.
Therefore, the objectives of my study are:
 To Know whether Café Cuba can substitute Coke.
 To Know the preference of consumers.
 To Know on what parameters a consumer selects the drink.

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1.1 Beverage industry
1940s: Industry in Transition."
Bottling Industry magazine hit the streets in 1946--at the height of the post-war American
recovery. The magazine's mission was to report on soft drink marketing and technology. The
industry has grown tremendously since then, and we've grown right along with it. Bottling
Industry changed its name to Soft Drink Industry during the late 1960s. It graduated to Beverage
Industry, with full beverage industry coverage, in the early 1970s. Name changes aside, we still
remain committed to delivering the beverage news you need to compete in the dynamic beverage
industry.
There was much to report--good and bad--during the 1940s. World War II (1940-45), the War to
End all Wars, had just ended, and America was on a full-throttle push for economic recovery.
It was a period of dramatic transition as Americans ached to put the war behind them and
celebrate peace.
Even with the recovery well underway, the soft drink industry continued to feel the effects of the
devastating war. Inconveniences were still part of the picture, as large manufacturing during the
war years was solely for the war effort. But soon more automobiles were on the road, and
products were once again making their way to store shelves.
Like other American industries, the beverage industry reflected the push for economic recovery
in a fervor of fresh thinking and entrepreneurial businesses.

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Sugar was still under the control of the Supplies Priorities and Allocation Board and
the Office of Production Management within the Office for Emergency Management, set up
during World War II.
But veterans were given the unique incentive of a fifty-thousand-pound allocation of sugar for
opening a bottling plant. As a result, the soft drink industry saw an unprecedented surge in the
construction of plants that lasted throughout the late 1940s.
Sugar controls ended in 1947, and although meeting demand continued to be a problem, the soft
drink industry was on the road of recovery.
Other woes that plagued our industry continue to crop up to this day. Long a tax target of states
anxious to pay for constituent-friendly programs, the soft drink industry battled daily to keep
proposals at bay. In 1947 alone, eighteen legislatures considered soft drink taxes, most using
South Carolina's twenty-six-year-old tax as a model. Of the eighteen, only Pennsylvania passed a
tax--of 20 percent. It was eliminated four years later, but was cited as the cause of more than $12
million in lost sales in its first year.
"The Fabulous 1950s."
Television, with its grainy picture and rabbit ears, had a greater impact on American culture
during the 1950s than such newsmakers as the Cold War, rock ’n’ roll and the polio vaccine.
Not only did the new medium bring news and trends into American Houses faster than any other
method, its novelty had the same pull on consumers that magnets have on steel cans. It didn't
take long for savvy marketers to advertise their wares over the airwaves.

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As early as 1951, Coca-cola bottling Co. sponsored television programme including the Bob
Dixon Show and The Adventures of Kit Carson. Ocean Spray debuted its first TV commercials in
1952. And looking ahead to the next decade, Bottling Industry magazine asked its readers: "What
dress will your product wear when color television is a household commodity?"
Just as the beverage industry--as well as the rest of the country--had put the hardships of World
War II behind it, the Korean War broke out. While the soft drink industry was better prepared for
supply management the Korean War further pinched already low sugar reserves, and aluminum
supplies were depleted by 35 percent for rearmament.
On the sunny side, manufacturing was in its fresh, post-war phase, and heavy emphasis was
placed on doing more, better and faster than ever to keep up with--and in many instances create-
consumer demand.
By 1955, the soft drink industry was making a "socko" comeback after a few mediocre sales
years. Volume nationally rose between 10 and 15 percent, compared to a loss of 0.01 percent in
1954, and a 4 percent gain in 1953. Dollar volume was up $100 million, with total dollar volume
at $1.2 billion, another record.
Per capita drink consumption was approximately 163 bottles in the early part of the decade.
More than twenty-eight billion bottles of soft drinks were sold in 1954.
Schools had yet to allow soft drinks, but marketers were right there when the afternoon bell rang,
with premiums, samplings, soft drinks and advertising for school programme.

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Supermarkets accounted for 53 percent of the nation's grocery business by the mid-1950s,
replacing Mom-and-Pop stores as the dominant retail outlet. Bottled soft drinks ranked as one of
the top profit producers in food stores, giving them an approximate return of 280 percent on
inventory investment, better than five times as much as the average of all other items carried by
grocers!
"Swingin' '60s."
Soft drinks were part of the major movements of the 1960s, including civil rights, Vietnam and
flower children. It was also during the 1960s that what people did with their soft drink
containers--as well as other refuse--started to matter.
The beverage industry was at the forefront of the crusade against litter. Keep America Beautiful
Inc., a group formed by trade associations representing glass, paper and can manufacturers, and
brewers, was formed in 1963. There was a lot to pick up.
One-and-a-half billion cases of soft drinks were produced in 1963, with a retail value of $2.1
billion, according to a U.S. Bureau of Census report, issued by the U.S. Department --a gain of
41 percent over the total in the 1958 census.
In the canned soft drink field, the report listed production of 65.7 million cases for 1963--or a
10.9 percent share of the soft drink packaging market, compared to 18.6 million cases in 1958. A
further breakdown showed canned dietetic products accounting for 9 million cases.
Cans were in the spotlight as much for their growing part in the soft drink industry as for new
developments. Can openers started to fade from the scene in the mid-1960s with the introduction
of American Can's easy-open "Touch 'n Go," ring tab, all-aluminum end can.

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American Can Co. also developed a tin-free can, manufactured completely of steel. The can was
first produced in 1966 for beer containers, with other beverages following.
Cans gained a foothold in vending during the 1960s. In 1963, cans accounted for only 3 percent
of vending sales. By 1964 it increased to 14 percent, and in 1965, it was about 22 percent.
Low-calorie soft drinks turned the corner during the 1960s, becoming a formidable and lasting
part of the category.
A survey published in Seventeen magazine indicated that low-calorie soft drinks were more
popular with the country's twelve million teenage girls than coffee, tea or fruit drinks.
"Sipping in the 70s."
With avocado and harvest gold kitchens, simulated wood paneling family/"rec" rooms,
Watergate and bell bottoms, it may be safe to say the 1970s wasn't the most tasteful of decades.
But that doesn't include soft drinks, which Soft Drink Industry magazine indicated were well on
their way to becoming America's No. 1 beverage choice.
Carbonated beverages had been No. 2 behind coffee since 1967, but were closing the gap and
would be the No. 1 beverage choice by 1977. Other top beverage picks were milk, at No. 3,
followed by beer, tea, juices, and distilled spirits.
It took awhile, but after the cyclamate ban of late 1969, the fizz returned to diet soft drinks by
1975, when sales had almost completely recovered to their 1969 peak.

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Although aspartame--at two hundred times the sweetness of sugar--was developed by G. D.
Searle during the 1970s, it was still years away from being added to soft drinks.
With cyclamates banned, saccharin remained as just about the only nonnutritive sweetener
choice. Pepsi-Cola launched Pepsi-Light, which consisted of a combination of both artificial and
nutritive sweeteners (with lemon), formulated according to FDA regulations governing
saccharin. It was sold and advertised as a "calorie reduced" soft drink rather than a "diet"
beverage. Pepsi-Light's light went out in the '80s when aspartame was approved for soft drinks.
The introduction of high fructose corn syrup (HFCS) as a sweetening agent and partial
replacement for sucrose in soft drinks was the big ingredient news of 1974. The launch of HFCS
was fortuitous, as it hit the market just as sugar prices eroded. Sugar was selling at roughly
$37.40 per hundred weight, while HFCS sold for about $20 per hundred weight.
As if the federal government didn't have enough to worry about with Watergate during the
1970s, it set out to further muddle the American psyche by heavily scrutinizing soft drink
ingredients, particularly artificial sweeteners and food colors.
Saccharin and caffeine both came under fire by the FDA, but findings proved inconclusive and
threatened bans were dropped. The use of food coloring FD&C Red No. 2 was restricted in 1971
to small doses, and only when a substitute could not be found. It was banned in 1976.
As with other segments of the marketplace, the soft drink industry was hurt by the economic
depression of the 1970s. Ingredient and production costs for soft drinks rose to an all-time high,
and U.S. per capita consumption of soft drinks dropped off for the first time in thirteen years in
1974, though only a minuscule 0.9 percent (to 31.6 gallons per capita).

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Sales of private label soft drinks peaked in 1972 but slowly drifted downward for the remainder
of the decade.
"Energetic '80s."
Among other things, the 1980s have been described as a decade of extremes. Our politics ran the
gamut from Jimmy Carter to Ronald Reagan, and the American diet could be summed up as Big
Macs washed down with Diet Coke.
There's no disputing the high drama of beverages during our last full decade, as aspartame
became the sweetener of choice and water became a hip-and-healthy packaged good.
The bottled water industry was considered the fastest growing facet of the beverage industry in
1980, with sales at $443 million in 1980, up 93 percent from 1976.
The soft drink industry continued to make modest gains throughout the 1980s. By 1980, per
capita consumption was 39.6 gallons. The industry had a total wholesale value of $17.7 billion,
on sales of more than 3.8 million cases (a 288-ounce case).
The soft drink of the decade was New Coke, Coca-Cola's attempt to stop market share erosion of
its flagship brand. The new cola had a "smoother" taste and was available in most markets by
May 1985. By August, sagging sales and consumer complaints were enough to convince the
company to bring back original Coke, now called Coca-Cola Classic.
All soft drinks--branded and private label alike--were affected by the approval of aspartame in
soft drinks.

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Aspartame was approved for soft drinks in the summer of 1983. By the end of 1984, sales of the
sweetener were already $585 million, and reached $800 million by the end of 1985.
Soft drink marketers were anxious to reformulate their diet offerings with the new sweetener.
Monsanto gave it an extra marketing edge when it began marketing aspartame under the
NutraSweet brand and created a little red swirl to identify it.
By the mid-'80s, artificial sweeteners had pushed sugar out of the limelight, lowering its share to
just under 59 percent of the sweetener market. During the early '80s, sales of high fructose corn
syrup grew annually by 33 percent, with total U.S. consumption estimated at 4 million tons.
"New Age '90s."
New age beverages accurately mirror the culture in the politically correct '90s. Not only do they
reflect a healthy lifestyle, they don't offend anyone. In addition to the healthful aspects, new age
beverages are characterized as being relatively new to the marketplace and are free of artificial
ingredients, flavors and preservatives.
Beverages fitting into the category include waters, all-natural beverages such as teas and sodas,
and juice-based sparkling waters and drinks.
Sparkling juice drinks saw the most dramatic growth at the outset of the decade, with 1990 sales
estimated at $115 million, led by Sundance Natural Juice Sparkler.
Other brands soon followed, and juice drinks--although now leaning heavily toward non-
carbonated new product entrants--still enjoy annual growth of more than 10 percent.

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Despite heavy attacks from Coca-Cola's PowerAde and Pepsi's All Sport, Quaker Oats' Gatorade
brand continues to hold about 80 percent of the sports drink market.
Today's sports drinks are being further fortified with vitamins and other antioxidants in an effort
to separate themselves from the salty, water-based isotonics of yesteryear.
Sales of good-for-you beverages grew at a 14.2 percent pace last year to become a $620 million
business.
During the last 10 years, bottled water has averaged 13.6 percent annual growth. This despite
the recall woes experienced by Perrier in 1990. The French bottled water concern controlled 80
percent of the U.S. import business in 1989. But random sampling of Perrier in early 1990 in
North Carolina turned up traces of benzene.
Perrier acted quickly, recalling its entire stock worldwide, more than 72 million bottles in the
U.S. alone. But the company has never regained its dominant position in the U.S. bottled water
market.
Other marketers tapped into Perrier's misfortunes, and bottled water has become one of the
largest beverage battle grounds of the 1990s.

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1.2 ParleAgro History
Parle Agro is an Indian private limited company that owns several popular brands
including Frooti, Appy, LMN, Hippo and Bailey.
Several Parle soda brands including Citra, Thums Up, Limca, Gold Spot and Maaza were sold
to Coca Cola in 1993 for a reported $40 million.[1][2] At the time of sale, the Parle brands together
had a 60% market share in the industry.[3] The brand was strong in South India.Citra was phased
out by 2000 to make way for Coke’s international brand, Sprite.
Parle Products was founded in 1929 in British India. It was owned by the Chauhan family of Vile
Parle, Mumbai. The Parle brand became well known in India following the success of products
such as the Parle-G biscuits and Thums Up soft drink.
The original Parle company was split into three separate companies owned by the different
factions of the original Chauhan family:
 Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Kismi Toffee Bar, Monaco and KrackJack)
 Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of
the brands such as Frooti and Appy)
 Parle Bisleri, led by Ramesh Chauhan

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Parle Agro
Parle Agro commenced operations in 1984. It started with beverages, and later diversified into
bottled water (1993), plastic packaging (1996) and confectionary (2007). Frooti, the first product
rolled out of Parle Agro in 1985, became the largest selling mango drink in India.
Separation from the parent company
The original Parle group was amicably segregated into three non-competing businesses. But a
dispute over the use of “Parle” brand arose, when Parle Agro diversified into the confectionary
business, thus becoming a competitor to Parle Products.
In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing
confectionary products. Later, Parle Agro launched its confectionery products under a new
design which did not include the Parle brand name. In 2009, the Bombay High Court ruled that
Parle Agro can sell its confectionery brands under the brand name “Parle” or “Parle Confi” on
condition that it clearly specifies that its products belong to a separate company, which has no
relationship with Parle Products.
Parle Agro brands
Parle Agro Pvt. Ltd operates under three major business verticals:
 Beverages – fruit drinks, nectars, juice, sparkling drinks
 Water – packaged drinking water
 Foods – confectionery, snacks

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Parle Agro also diversified into production of PET preforms (semi-finished bottles) in 1996. Its
customers include companies in the beverages, edible oil, confectionery and pharmaceutical
segments.
A long time ago, when the British ruled India, a small factory was set up by Mohanlal Dayal
Chauhan in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929
and the market was dominated by famous international brands that were imported freely. Despite
the odds and unequal competition, this company called Parle Products, survived and succeeded,
by adhering to high quality and improvising from time to time.
A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and
toffees. Having already established a reputation for quality, the Parle brand name grew in
strength with this diversification. Parle Glucose and Parle Monaco were the first brands of
biscuits to be introduced, which later went on to become leading names for great taste and
quality.
The original Parle company was split into three separate companies, owned by the different
factions of the original Chauhan family:
 Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Monaco and KrackJack)
 Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of
the brands such as Frooti, Appy, Appy fizz, Café cuba)
All three companies continue to use the family trademark name “Parle”. The original Parle group
was amicably segregated into three non-competing businesses. But a dispute over the use of

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“Parle” brand arose, when Parle Agro diversified into the confectionary business, thus becoming
a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the
brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery
products under a new design which did not include the Parle brand name In 2009, the Bombay
High Court ruled that Parle Agro can sell its confectionery brands under the brand name “Parle”
or “Parle Confi” on condition that it clearly specifies that its products belong to a separate
company, which has no relationship with Parle Products.

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1.3 SWOT ANALYSIS
SWOT analysis is the firm should identify its internal Strengths (S) and Weeknesses (W) and
also examine external Opportunities (O) and Threats (T).

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Strengths
Parle Brand,
Diversified product range,
Extensive distribution network.
Low and mid price range
Catering to mass,
Better understanding of consumer psyche.
Weaknesses
Dependence on retailers & grocery Stores for displaying diversified Parle Agro Products
on shelf, induce impulsive buy.
Opportunities
Estimated annual growth of 20%
Low per capita consumption,
Changing consumer preference,
Increasing demand for sugar free,
Threats
Hike in cost of production due to hike in raw material cost.
Increase distribution cost.
Local beverage product.
Entry of various new entrant.

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1.4 BCG MATRIX
The Boston consulting Group’s portfolio matrix allows a firm to visually display information
about each of its. The BCG matrix has as its axes the market growth rate (Broken into high and
low growth) and the relative market share as compared to the largest competitors (high and low
relative market share).
The BCG matrix method is based on product life cycle theory that determine the product
portfolio of a unit which contains both high growth product & low growth product having 2
Dimensions: Market share & Market growth.

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BCG MATRIX CONSISTS OF 4 CATEGORIES:

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1. STARS:
(High growth & High market share)
Stars are market leaders and growing fast. Stars have large
reported profits but require a lot of cash to finance the rapid
growth. As per the company’s survey, APPY FIZZ is touching the peak of success & therefore
comes under the STAR category thereby the Co. can invest a large sum for its upliftment.
2. CASH COWS
(Low growth, High market share)
A cash cow usually generates more cash than is
required to maintain its market share. It is in low-
growth market but has a dominant market share. Profits & cash generation should be high due to
its Low growth, the investment needed to be Low to keep Profits High. The products like
FROOTI.

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3. QUESTIONMARK:
(High growth, Low Market share)
It has worst cash characteristics because of High demands & Low
returns due to Low market share makes the Co. to sell off & deliver
cash.Products like CAFÉ CUBA comes under this.
4. DOGS:
(Low growth, Low market share)
The products like HIPPO CHIPS Conclude with DOGS as
they need to be divested because they are doing no good for
the Co. & have remained as an liability.

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1.5 cﾑｷ乇 cu乃ﾑ
Fast moving consumer goods major Parle Agro on re-entered the
Rs.15,000 crore-worth carbonated soft drinks (CSD) segment, 20
years after it sold brands like Thumps Up and Limca.
According to the company which manufacturers beverages like
Frooti and Appy, the new drink which is currently available in 250 ml cans priced at Rs.20 and
blends flavour of roasted coffee beans with strong carbonated fizz.
The company said that the launch will allow it to target a turnover of Rs.5,000 crore from the
current mark of Rs.2,000 crore.
The company will also expand its distribution from the current eight lakh outlets to 1.5 million.
With the launch of Café Cuba, Parle Agro set the stage for a revolution in the Indian
beverage market. This test launch gave India its first carbonated coffee soft drink. Taking this
revolution one step further, this summer Parle Agro is all set for a national launch,
accompanied by a pan-India marketing and brand communication campaign
introducing ‘The Coffee Revolution’.
The campaign aims to maximise brand awareness, resulting in increased product trial.
The communication is edgy, premium, bold and rebellious, targeted at the experimental
mindset of the progressive Indian youth. Spend to the tune of Rs 50 crore has been invested
across a strategic mix of media vehicles that appeal to the youth.Television will play the role
of the lead medium for the campaign, followed by an aggressive focus on digital brand
building. The campaign will be supported by print, outdoor and cinema ads. Each of the

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mediums will deliver the message of ‘The Coffee Revolution’ with the edginess of an
underground movement.
To further induce product trial and aid sampling activities, Parle Agro has introduced a
revolutionary new SKU in the form of 150 ml cans priced at Rs 15, which will strongly benefit
the brand.
Speaking on the strategy behind one of the biggest brand launches, Nadia Chauhan Kurup,
JMD & CMO, Parle Agro, said, “We are on our way to create a revolution on many levels in
the Indian beverage industry with not just a unique brand, but also with a differentiated
marketing strategy. With our new campaign, we aim to connect with evolving youth of today.”
Café Cuba has undoubtedly emerged as one of the hottest new trends in the beverage market,
as is reflected in its distribution which grew by 400 per cent from just 10,000 outlets to a
whopping 4.25 lakh outlets today.
It has revolutionised the stagnant carbonated soft drinks category by letting Indian consumers
enjoy the flavour of coffee in the form that they most love their beverages – chilled and fizzy.
That’s why 2.8 million consumers have already tasted Café Cuba in its test phase alone, a
figure that has surpassed the company’s expectations.
The integrated campaign would feature a fine showcase of work across multiple touch-points,
from a long format film to shorter ones, from sampling strategy to retail experiences. And, of
course,Print, TV, digital and social media.
Shot by renowned photographer and director Bharat Sikka in the backstreets of Cape Town,
South Africa, the TVC depicts the original story of Cafe Cuba’s underground revolution. It

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features characters that are stylish and bold in a setting that is raw and electrifying, setting the
tone and attitude for the brand.
Since the majority of the brand’s TG is present online, the digital medium will be leveraged to
maximise TVC views and lead traffic on to the brand’s website.
The brand website, www.cafecuba.in, is unique and revolutionary, just like the brand itself,
and will also be a platform to retail brand merchandise. Ten per cent of the overall marketing
budget has been earmarked for this.
The revolution will extend further in alternate channels to increase visibility and boost
awareness.
Modern trade promos along with introduction of multipacks will be introduced in May.
HoReCa activations will also serve as an essential avenue for promoting Café Cuba as a mixer.
Through all these endeavours, Parle Agro hopes to double the brand’s distribution strength,
and is set to make Café Cuba a Rs 1,000-crore brand within 12-14 months of its launch.

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COCA COLA INTERNATIONAL
2.1 HISTORY:
Coca-Cola Enterprises, established in 1986, is a young company by the standards of
the Coca-Cola system. Yet each of its franchises has a strong HI Sitage in the
traditions of Coca-Cola that is the foundation for this Company.
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist,
Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks.
However the bottling business began in 1899 when two Chattanooga business me n,
Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle
and sell Coca-Cola for most of the United States from The Coca-Cola Company.

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The Coca-Cola bottling system continued to operate as independent, local businesses
until the early 1980s when bottling franchises began to consolidate. In 1986, The
Coca-Cola Company merged some of its company-owned operations with two large
ownership groups that were for sale, the John T. Lupton franchises and BCI Holding
Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company
offered its stock to the public on November 21, 1986, at a split-adjusted price of
$5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-
Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again
helping accelerate bottler consolidation. As part of the merger, the senior
management team of Johnston assumed responsibility for managing the Company,
and began a dramatic, successful restructuring in 1992.Unit case sales had climbed
to 1.4 billion, and total revenues were $5 billion.

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2.2 The World’s Most Powerful Brand
Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the
World and estimated its brand value at $70.45 billion . The ranking’s methodology
determined a brand’s valuation on the basis of how much it was likely to earn in the
future, distilling the percentage of revenues that could be credited to the brand, and
assessing the brand’s strength to determine the risk of future earnings forecasts.
Considerations included market leadership, stability, and global reach, incorporating its
ability to cross both geographical and cultural borders. From the beginning, Coke
understood the importance of branding and the creation of a distinct personality.18 Its

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catchy, well-liked slogans19 (“It’s the real thing” (1942, 1969),“Things go better with
Coke” (1963), “Coke is it” (1982), “Can’t beat the Feeling” (1987), and a 1992 return to
“Can’t beat the real thing”) 20 linked that personality to the core values of each
generation and established Coke as the authentic, relevant, and trusted refreshment of
choice across the decades and around the globe.
2.3 Indian History
India is home to one of the most ancient cultures in the world dating back over 5000
years. At the beginning of the twenty-first century, twenty-six different languages were
spoken across India, 30% of the population knew English, and greater than 40% were
illiterate. At this time, the nation was in the midst of great transition and the dichotomy
between the old India and the new was stark. Remnants of the caste system existed
alongside the world’s top engineering schools and growing metropolises as the
historically agricultural economy shifted into the services sector. In the process, India
had created the world’s largest middleclass, second only to China.
A British colony since 1769 when the East India Company gained control of all
European trade in the nation, India gained its independence in 1947 under Mahatma
Ghandi and his principles of non-violence and self-reliance. In the decades that
followed, self-reliance was taken to the extreme as many Indians believed that
economic independence was necessary to be truly independent. As a result, the
economy was increasingly regulated and many sectors were restricted to the public
sector.

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This movement reached its peak in 1977 when the Janta party government came to
power and Coca-Cola was thrown out of the country. In 1991, the first generation of
economic reforms was introduced and liberalization began.
2.4 Coke in India
Coca-Cola was the leading soft drink brand in India until 1977 when it left ratHIS than
reveal its formula to the government and reduce its equity stake as required under the
Foreign Exchange Regulation Act (FERA) which governed the operations of foreign
companies in India. After a 16-year absence, Coca-Cola returned to India in 1993,
cementing its presence with a deal that gave Coca-Cola ownership of the nation's top
soft-drink brands and bottling network.
Coke’s acquisition of local popular Indian brands including Thums Up (the most trusted
brand in India), Limca, Maaza, Citra and Gold Spot provided not only physical
manufacturing, bottling, and distribution assets but also strong consumer preference.
This combination of local and global brands enabled Coca-Cola to exploit the benefits of
global branding and global trends in tastes while also tapping into traditional domestic
markets. Leading Indian brands joined the Company's international family of brands,

35
including Coca-Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range.
In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink
and the powdered concentrate Sunfill hit the market.
From 1993 to 2003, Coca-Cola invested more than US$1 billion in India, making it one
of the country’s top international investors.22 By 2003, Coca-Cola India had won the
prestigious Woodruf Cup from among 22 divisions of the Company based on three
broad parameters of volume, profitability, and quality. Coca-Cola India achieved 39%
volume growth in 2002 while the industry grew 23% nationally and the Company
reached breakeven profitability in the region for the first time.
Encouraged by its 2002 performance, Coca-Cola India announced plans to double its
capacity at an investment of $125 million (Rs. 750 crore) between September 2002 and
March 2003.
Coca-Cola India produced its beverages with 7,000 local employees at its twenty-seven
wholly-owned bottling operations supplemented by seventeen franchisee-owned bottling
operations and a network of twenty-nine contract-packers to manufacture a range of
products for the company. The complete manufacturing process had a documented
quality control and assurance program including over 400 tests performed throughout
the process.
The complexity of the consumer soft drink market demanded a distribution process to
support 700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay
three wheelers, and trademarked tricycles and pushcarts that were used to navigate the
narrow alleyways of the cities. In addition to its own employees, Coke indirectly created

36
employment for 125,000 Indians through its procurement, supply, and distribution
networks.

37
2.5 SWOT ANALYSIS
Strengths Weaknesses
1. The best global brand in the world in
terms of value ($77,839 billion)
2. World’s largest market share in
beverage
3. Strong marketing and advertising
4. Most extensive beverage distribution
channel
5. Customer loyalty
6. Bargaining power over suppliers
7. Corporate social responsibility
1. Significant focus on carbonated drinks
2. Undiversified product portfolio
3. High debt level due to acquisitions
4. Negative publicity
5. Brand failures or many brands with
insignificant amount of revenues
Opportunities Threats
1. Bottled water consumption growth
2. Increasing demand for healthy food and
beverages
3. Growing beverages consumption in
emerging markets (especially BRIC)
4. Growth through acquisitions
1. Changes in consumer preferences
2. Water scarcity
3. Strong dollar
4. Legal requirements to disclose negative
information on product labels.
5. Decreasing gross profit and net profit
margins.
6. Competition from PepsiCo
7. Saturated carbonated drinks market

38
2.3 BCG MATRIX
BCG MATRIX CONSISTSOF 4 CATEGORIES:

39
1. STARS:
(High growth & High market share)
Stars are market leaders and growing fast. Stars have large reported profits but require a lot of
cash to finance the rapid growth. As per the company’s survey, THUPS UP, MAAZA is
touching the peak of success & therefore comes under the STAR category thereby the Co. can
invest a large sum for its upliftment.
2. CASH COWS
(Low growth& High market share)
A cash cow usually generates more cash than is required to maintain its market share. It is in
low-growth market but has a dominant market share. Profits & cash generation should be high
due to its Low growth, the investment needed to be Low to keep Profits High. The products like
LIMCA AND KINLEY (WATER).
3. QUESTION MARK:
(High growth, Low Market share)
It has worst cash characteristics because of High demands & Low returns due to Low market
share makes the Co. to sell off & deliver cash. Products like FANTA, SPRITE, and MINTUE
MAID comes under this.

40
4. DOGS:
(Low growth, Low market share)
The products like GEORGIA conclude with DOGS as they need to be divested because they are
doing no good for the Co. & have remained as an liability.

41
2.6 COMPARSION BETWEEN CAFÉ CUBA AND COKE
SWOT ANALYSIS OF PARLE AGRO
Strengths
Parle Brand,
Diversified product range,
Extensive distribution network.
Low and mid price range
Catering to mass,
Better understanding of consumer psyche.
Weakness
Dependence on retailers & grocery Stores for displaying diversified Parle Agro Products
on shelf, induce impulsive buy.
Opportunities
`Estimated annual growth of 20%
Low per capita consumption,
Changing consumer preference,
Increasing demand for sugar free,
Threats
Hike in cost of production due to hike in raw material cost.
Increase distribution cost.
Local beverage product.

42
2.7 SWOT ANALYSIS OF COCA COLA
Strength
 The best global brand in the world in terms of value ($77,839 billion)
 World’s largest market share in beverage
 Strong marketing and advertising
 Most extensive beverage distribution channel
 Customer loyalty
 Bargaining power over suppliers
 Corporate social responsibility
Weakness
 Significant focus on carbonated drinks
 Undiversified product portfolio
 High debt level due to acquisitions
 Negative publicity
Opportunity
 Bottled water consumption growth
 Increasing demand for healthy food and beverages
 Growing beverages consumption in emerging markets (especially BRIC)
Threats
 Changes in consumer preferences
 Water scarcity
 Strong dollar
 Legal requirements to disclose negative information on product labels.
 Decreasing gross profit and net profit margins.
 Competition from PepsiCo

43
Chapter 3
OBJECTIVES OF STUDY

44
Chapter 4
RESEARCHMETHODOLOGY

45
Data collectionmethod
Primary data
 Primary research was conducted with the help of observation method by visiting the
supermart and departmental store.
 Feedback was taken from the customers in the form of questionnaires. The survey was
conducted in the following manner. The questionnaires were administered to the
respondents who came to the shops.
Secondary data
 Study of the documents which included various magazines, journals, and internet.
 Study of data of PARLE AGRO.
Sample Size

46
The survey was done by 100 people comprising mainly of teenagers and youngsters between the
ages of 18 to 30 years.
CHAPTER 3
FINDINGS
AND

47
ANALYSIS
Questionnaire
1. Are you aware of Café Cuba Can?
 Yes
 No
Findings:
AwarenessLevel
YES
NO

48
According to the survey it was founded that more than 50% of
respondents were aware about Café Cuba Can.
2. If yes, then which source of media?
 Television commercial
 Hoardings
 Magazines
 Pop
 Word of mouth

49
FINDINGS:
It was founded that TVC and POP are playing major role in the brand
promotion on Café Cuba Can, followed by a strong word of mouth
and hoardings and magazine.
3. What is your age?
 15-20
 20-25
 25-30
 30 Above
0
5
10
15
20
25
30
35
40
TVC HOARDINGS MAGAZINES POP WORD OF
MOUTH
SOURCE OF MEDIA
SOURCE OF MEDIA

50
FINDINGS:
It was observed that the drink is for youth so the main target audience
Was between the age of 20-25 followed by 15-20.
4. Which aspect of Café Cuba Can attracts you more?
 New concept
 Packaging
 Flavor
 TV commercial
AGE GROUP
15-20
20-25
25-30
30 ABOVE

51
FINDINGS:
According to the survey people were liking the all new conceptof this
drink as it is first coffee carbonated drink and packaging is also acting
as major factor attraction as it is available in 150 ML can (₹15) and
250 ML Can (₹20).
5. Where do you generally buy your products from?
 General store
 Convenience store
 Kirana shop
 Malls
0
5
10
15
20
25
30
35
40
45
NEW
CONCEPT
PACKAGING FLAVOR TVC
ASPECT
ASPECT

52
Findings:
It was observed that 60% of the respondents was youth and they prefer
General store to buy products as compared to kirana shop, convenience
Store and Malls.
6. How health conscious are you?
 Extremely
 Very
 Somewhat
 Not at all
60%
15%
20%
5%
OPTION
GENERAL STORE
CONVENIENCE STORE
KIRANA SHOP
MALLS

53
FINDINGS:
As per the survey 75% of the respondent was found to be extremely
health conscious and Café Cuba Can proves to be a healthy drink as it
comes from very renowned brand Parle Agro.
7. Why do you drink soft drink?
 Flavour
 Caffeine
 Refreshment
 Brand loyalty
0
10
20
30
40
50
60
70
80
EXTREMELY VERY SOMWHAT NOT AT ALL
HEALTH CONCIOUS
HEALTH CONCIOUS

54
FINDINGS:
As per the survey people usually drink any softdrink because of its
flavour and it was also observed that a large number of respondent
drinks due to its refreshing part and many people was found to be
brand loyal.
8. Can Café Cuba act as a substitute of Cola?
 Yes
 No
0
5
10
15
20
25
30
35
40
FLAVOUR CAFFEINE REFRESHMENT BRAND
LOYALTY
OPTION
OPTION

55
FINDINGS:
It was observed that more than 50% of the respondent thinks that
Café Cuba cannot substitute coke. Because as per consumer it’s a
different conceptas compared to coke and it’s a very early stage as
well.
9. If no, then what makes you to drink coke?
 Brand ambassador
 Brand loyalty
 Value for money
OPTION
YES
NO

56
 Flavour
FINDINGS:
According to the survey Value for money was the main factor that
makes people to drink coke, since it’s a well-established brand as
compared to Café Cuba so people are well aware of its flavour also.
10.How often do you consume coke?
 Daily
 Weekly basis
 Monthly
0
5
10
15
20
25
30
35
40
Brand ambassador Brand loyalty Value for money Flavour
OPTION
OPTION

57
 Never
FINDINGS:
It was observed that summer season is going on and therefore a large
number of respondents was there who drinks coke on weekly basis
followed by daily basis.
11.How satisfied are you with coke?
 Very satisfied
 Satisfied
0
5
10
15
20
25
30
35
40
45
DAILY WEEKLY MONTHLY NEVER
OPTION

58
 Neutral
 Unsatisfied
FINIDNGS:
As per the survey more than 50% of the respondents were very
satisfied with coke.
12.Rate Café Cuba in terms of the following features on a scale of 1 to 5.Rating
of 1 represents that the Café Cuba is poorin providing this attribute. Rating
of 5 represents that the Café Cuba is very good in providing this attribute?
SATISFACTION
VESY SATISFIED
SATISFIED
NEUTRAL
UNSATISFIED

59
1 2 3 4 5
Availability
Brand Promotion
Concept
Pricing (only cans)
Flavor
Innovative
FINDINGS:
According to survey a large number of respondents rated 5 in concept
as it is a new conceptfollowed by its innovative technique.
13.Rate Coke in terms of the following features on a scale of 1 to5.Rating of 1
represents that Coke is poorin providing this attribute. Rating of 5
represents that Coke is very good in providing this attribute?
OPTION
AVAILABILTY
BRAND PROMOTION
CONCEPT
PRICING
FLAVOUR
INNOVATIVE

60
1 2 3 4 5
Availability
Brand promotion
Concept
Pricing (only cans)
Flavor
Innovative
FINDINGS:
As per the survey respondentrated coke as 5 in terms of availability.
Since its an well-established brand so its flavour is also well known to
consumers and pricing is also very competitive.
Conclusion
OPTION
AVAILABILTY
BRAND PROMOTION
CONCEPT
PRICING
FLAVOUR
INNOVATIVE

61
It is clear form the above report that the after the establishment of Parle Agro in the Indian market
, it become a great threat for most of the domestic competitor and also for MAAZA and SLICE.
As of now consumers are satisfied with the product line and also with the distribution of Parle
Agro. In comparison toCoca Cola, Parle Agro has less number of products in the Indian market
but due its brand name, re-formalized strategies as per the Indian market and strong promotional
measures it is rapidly capturing growth and market share in the Indian market.
As far as Café Cuba is concerned it will also capture the market as it is fresh concept and it has no
competitor in the market now. And pricing is also very competitive. And a large customer base
who are very fond of coffee.
Thus we can say that it is in the interest of the company to use attractive promotional measures to
get a competitive advantage over its competitors.
Therefore, we can conclude from the above discussion that Café cuba has a greater scope of
expansion and opportunity to increase its market share in the Indian market.

62
Limitation
No project is without limitations and it becomes essential to figure out the various constraints
thatwe underwent during the study.
The following points in this direction would add to our total deliberations:-
1. During the study, on many occasions the respondent groups gave us a cold shoulder.
2. The respondents from whom primary data was gathered any times displayed complete
ignorance about the complete branded range, which was being studied.
3. Lack of time is the basic limitation in the project.
4. Some retailers/whole sellers refuse to cooperate with the queries.
5. Some retailers/wholesalers gave biased or incomplete information regarding the study.
6. Money played a vital factor in the whole project duration.
7. Lack of proper information and experience due to short period of time.
8. Some retailers did not answer all the questions or do not have time to answer.
Recommendation

63
 Parle Agro should focus more to establish Café Cuba in Indian market
 According to the survey, conducted by the international firm Indians like little bit sweeter
cola drink.
 Parle Agro should try to emphasis more on providing their infrastructure in the market to
facilitate their customers.
 Marketing team should try to increase the availability of Café Cuba in rural areas.
 Parle Agro should try to emphasis more on packing of the can.
Bibliography

64
 www.parleagro.com
 www.slideshare.com
 www.scibd.com
 Wikipedia
 Newspaperand magazines
 Books andjournals
 www.cocacola.com

Cafe cuba project 1

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