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PRANVEER SINGH INSTITUTE OF
TECHNOLOGY.COE
CODE: 348
Affiliated to Dr. A. P. J. AKTU
SUMMER TRAINING PROJECT REPORT
Submitted in partial fulfillment of Master of Business Administration
Session- 2015-2016
“Project Report on analysis of potential market and building
business with SPLASH BAR introduced by Coca-Cola Company”
Company Guide Submitted By:
Mr. Dhiraj Agarwal Ayush Dwivedi
Area Sales manager 1434870007
Internal Guide
Miss Mansi Yadav
Assistant Professor
Department of management
“Project Report on analysis of potential market of SPLASH
BAR introduced by Coca-Cola Company”
DECLARATION
I hereby declare that this submission is my own work. It contains no material
previously published or written by another person, nor has this material to a
substantial extent been accepted for the award of any other degree or diploma of the
university or other institute of higher learning.
Ayush Dwivedi
1434870007
“Project Report on analysis of potential market of SPLASH
BAR introduced by Coca-Cola Company”
ACKNOWLEDGMENT
Summer training Project Report is the one of the important part of MBA
program, which has helped me to gain a lot of experience about practical application
of my theoretical concepts, which will be beneficial in my succeeding career.
I express my sincere gratitude to my industry guide Mr. Dhiraj Agarwal,
Area sales manager for their guidance, continuous support & cooperation throughout
my project without which the present work would not have been possible.
I am obliged to staff members of Hindustan Coca-cola Beverage Pvt. Ltd.,
for the valuable information provided by them in their respective fields. I am grateful
for their cooperation during the period of my assignment.
With an ineffable sense of gratitude I take this opportunity to express my deep
sense of indebtedness and gratitude to Dr. N. K. Singh, Director PSIT.coe and Dr.
S. L. Shukla, Director Academics along with Dr. Atul Kumar Agarwal, Professor
and Head of Department in Business Administration, for their encouragement,
support and guidance in carrying out the project.
I am very much thankful to, my Project Guide –Ms. Mansi Yadav, Faculty-
Business Administration for their interest, constructive criticism, persistent
encouragement and untiring Guidance throughout the development of the project. It
has been my great privilege to work under his/her inspiring guidance.
I am also thankful to my Parents and my friends for their indelible Co-operation
for achieving the Goal of this study.
“Project Report on analysis of potential market of SPLASH
BAR introduced by Coca-Cola Company”
EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. The study takes us
through the present state of affairs of the SPLASH BAR and Coca-Cola Company.
The report contains a brief introduction of Coca Cola Company and a detailed view
of the tasks, which have been undertaken to analyze the potential market of SPLASH
BAR i.e PESTLE and SWOT analysis of Coca-Cola Company and in order to
identify areas of potential growth for Coca-Cola.
The main objective of this project report is to analyze and study in efficient way the
Potential market for building Business with SPLASH BAR. The study also aims to
perform Market Analysis of Coca-Cola Company & find out different factors
effecting the growth of Coca-Cola. Apart from these objectives this study is also
conducted to understand the Customer preferences towards SPLASH BAR.
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PART-I
CHAPTER 1
INTRODUCTION
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1.1 INDUSTRY PROFILE
A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA
In today`s world FMCG companies are growing at a great pace and has established a
remarkable position in this competitive market. Fast Moving Consumer Goods
(FMCG) are popularly named as Consumer Packaged Goods (CPG). Items in this
category include all consumables (other than groceries/pulses) that people buy at
regular intervals. The most common in the list are toilet soaps, detergents, shampoos,
toothpaste, shaving products, shoe polish, packaged foodstuff, and household
accessories and extends to certain electronic goods. These items are meant for daily or
frequent consumption and have a high return. A major portion of the monthly budget
of each household is reserved for FMCG products. The volume of money circulated in
the economy against FMCG products is very high, as the number of products the
consumer use is very high. Competition in the FMCG sector is very high as well
resulting in high pressure on margins. FMCG companies maintain intense distribution
network. Companies spend a large portion of their budget on maintaining distribution
networks. New entrants who wish to bring their products in the national level need to
invest huge sums of money on promoting brands. Manufacturing can be outsourced.
A recent phenomenon in the sector was entry of multinationals and cheaper imports.
Also the market is more pressurized with presence of local players in rural areas and
state brands.
The middle class and the rural segments of the Indian population are the most
promising market for FMCG, and give brand makers the opportunity to convert them
to branded products. Most of the product categories like jams, toothpaste, skin care,
shampoos, etc, in India, have low per capital consumption as well as low penetration
level, but the potential for growth is huge. The Indian economy is surging ahead by
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leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and
rising per capita income. The Indian FMCG sector with a market size of US$13.1
billion is the fourth largest sector in the economy. A well-established distribution
network, intense competition between the organized and unorganized segments
characterizes the Indian FMCG sector. FMCG is expected to grow by over 60% by
2010. That will translate into an annual growth of 10% over a 5-year period. It has
been estimated that the FMCG sector will rise to Rs.92, 100 crores in 2020. Though
the sector witnessed a slower growth in 2002-2004, it has been able to make a fine
recovery since then.
According to CRISIL anticipation, FMCG sector could touch around INR 140,000
Crores by 2015.
Characteristics of FMCG Sector:
This industry is characterized by a strong focus on the four Ps – price points,
promotions to push the otherwise undifferentiated products, places to sell them, and
the product, which has to be sold. This industry is high volume, low value driven in
most categories. It is also brand driven, rather than product driven. The capital
investment required in plant and machinery is not high and any reasonably sized
industrial house can enter the industry in manufacturing.
It has been one of the first to use the concept of outsourcing‘ since the core
competency of a true blue FMCG company lies not in the manufacture of its
products(which in most cases is simple and known), but in its ability to brand,
differentiate and distribute widely for sale in
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the country. Manufacturing is not expensive, but marketing of FMCG products is. In a
vast and complex country like India, plagued by poor infrastructure and a mass of
laws, distribution networks of dealers, wholesalers and agents are often the key source
of success.
Indian Competitiveness & Comparison with the world markets
The following factors make India a competitive player in FMCG sector:
Availability of raw materials - Because of the diverse agro-climatic conditions in
India, there is a large raw material base suitable for food processing industries. India
is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and
is the second largest
producer of rice, wheat and fruits &vegetables. India also produces caustic soda and
soda ash, which are required for the production of soaps and detergents. The
availability of these raw materials gives India the location advantage.
Labor cost comparison - Low cost labor gives India a competitive advantage. India's
labor cost is amongst the lowest in the world, after China & Indonesia. Low labor
costs give the advantage of low cost of production. Many MNC's have established
their plants in India to outsource for domestic and export markets.
Presence across value chain - Indian companies have their presence across the value
chain of FMCG sector, right from the supply of raw materials to packaged goods in
the food-processing sector. This brings India a more cost competitive advantage. For
example, Amul
supplies milk as well as dairy products like cheese, butter, etc. Likewise RSPL
provides Namaste India milk & milk products.
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Countries covered: India
The Indian FMCG sector is the fourth largest in the Indian economy and has a market
size of $13.1 billion. This industry primarily includes the production, distribution and
marketing of consumer packaged goods, that is those categories of products which are
consumed at regular intervals. The sector is growing at rapid pace with well-
P a g e | 6
established distribution networks and intense competition between the organized and
unorganized segments. It has a strong and competitive MNC presence across the
entire value chain. The FMCG’s promising market includes middle class and the rural
segments of the Indian population, and give brand makers the opportunity to convert
them to branded products. It includes food and beverage, personal
care, pharmaceuticals, plastic goods, paper and stationery and household products
etc.
India, Asia’s third largest economy, saw urban consumers spend less in calendar year
2015
due to high inflation, muted salary hikes, and slowing economic growth that affected
both real wages and sentiment. During 2012, the overall slowdown in the economy
has begun to affect the FMCG sector with companies posting deceleration in volume
growth in the recent quarterly results. Discretionary spending has been hit severely
due to the ongoing slowdown. The prevailing high inflation level is also a cause of
concern for the sector.
The trends seen in 2012 are likely to accelerate in 2013. Growth will come from rural
dwellers that are expected to see a rise in disposable incomes due to the direct cash
transfer scheme, while urban consumers will continue to be affected by the
macroeconomic environment.
IS Advisors takes you through the impact analysis of Union Budget 2013-14 on the
Industry in this report. The report provides useful and comprehensive information
about the industry expectations from the budget, proposed measures in the budget and
their impact on industry and its players.
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 Industry at a glance
 List of key Budget expectations
 Analysis of the various budget provisions affecting the industry
 Summarize impact on key players of the industry
REASONS TO BUY
To understand the impact of key government policies on the overall industry and key
playersFast Moving Consumers Goods (FMCG) companies are often considered as a
defensive bet because of India’s consumption-driven growth story. This helps the
companies to grow at a decent pace, despite the business cycle they are in. However,
these companies have recently faced some issues in terms of volume growth as a
result of lower disposable income from the consumers’ end. According to media
reports, even the rural sales are declining, hurting the companies’ topline.
With the forthcoming Budget, FMCG companies have some expectations from the
Finance Minister (FM), which could revive the consumer sentiments helping the
sector to perform well going ahead. However, before going through this year’s wish
list, let’s take look at the FMCG-specific announcements made in last year‘s budget.
Following are some of the key Budget announcements made for FY13 with respect to
the FMCG sector:
 The excise duty was increased to 12 per cent (FY13) from the earlier 10 per
cent (FY12). The industry players had not expected this hike as it created
inflationary pressures.
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 A clear guidance was not provided about the Goods and Services tax (GST)
implementations.
 Excise duties were also increased in case of tobacco products against the
expectations.
 The target for agriculture credit limit was raised by Rs 1,00,000crore to Rs
5,75,000 crore in 2013-14 on a YoY basis.
 Further, the FM retained the interest subvention scheme for providing short-
term crop loan to farmers at a 7 per cent interest rate. An additional subvention
of 3 per cent was available to prompt paying farmers.
 The exemption limit for general tax payers was enhanced from Rs 1.8 lakh to
Rs 2 lakh, giving a tax relief of Rs 2,000. Further, the upper limit of 20 per
cent tax slab was raised from Rs 8 lakh to Rs 10 lakh. The additional income
generated from this helped the individuals to spend more, thus benefiting the
sector
Following are the key Budget expectations from the FMCG space for this year's
Budget (2014-15):
 A clear roadmap for Goods and Services Tax (GST) from the FM. various
media reports suggest that GST would be implemented from the next year
(April 2014), but the industry expects a positive development in the area. This
is because the GST will bring down the distribution costs of the FMCG
companies, which are currently in the range of 2 to 7 per cent of their
turnover.
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 No hike in excise duty. If hiked, it would certainly be passed on to the
consumers, which will further fuel inflation. Also, hike in prices may reduce
consumer spending, hammering the overall growth of the companies.
 An increased allocation of funds to rural infrastructure development and
various rural employment related schemes like MGNREGA which will
increase the rural spend.
 Higher exemption limit for tax payers, which would leave consumers with
more cash and thus be a positive sign for the consumer space.
 The Indian tea industry should be given an interest subsidy at 5% on the
applicable rate of interest on the funds specifically borrowed for the activities
of replanting.
 The existing ban of FDI in manufacturing of cigars, cigarettes and other
tobacco related products should be further strengthened in order to protect the
domestic manufacturers, employment and revenue interests.
Overall, we believe that the Budget 2013 would be a positive one for the FMCG
space. However, the risk of excise duty hike is hovering over the sector. Such a hike
would improve the financials of the central government which is more focused on
curbing its twin deficit. On the other hand, a hike would fuel inflation which is still
way above the comfort level of thecommon man.
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1.2 INTRODUCTION TO COCA-COLA
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca- Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400 brands, the
Coca-Cola system has successfully applied a simple formula on a global scale:
“Provide a moment of refreshment for a small amount of money- a billion times a
day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,
from Montreal to Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe.
For more than 115 years, Coca-Cola has created a special moment of pleasure for
hundreds of millions of people every day.
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The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and services, thus increasing brand
equity on a global basis. They aim at managing their business well with people who
are strongly committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and objectives. The
associates of this Company jointly take responsibility to ensure compliance with the
framework of policies and protect the Company’s assets and resources whilst limiting
business risks.
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CHAPTER 2:
COMPANY PROFILE
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2. COMPANY PROFILE
2.1 Vision, Mission & Quality Policy
Mission:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and
decisions.
 To refresh the world..
 To inspire moments of optimism and happiness...
 To create value and make a difference.
Vision:
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the best
they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that
anticipate and satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together
we create mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build
and support sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of
our overall responsibilities.
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 Productivity: Be a highly effective, lean and fast-moving organization.
Winning Cultures:
Our Winning Culture defines the attitudes and behaviors that will be required of us to
make our 2020 Vision a reality.
Values:
Our values serve as a compass for our actions and describe how we behave in the
world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.
Focus on the Market:
 Focus on needs of our consumers, customers and franchise partners.
 Get out into the market and listen, observe and learn.
 Possess a world view.
 Focus on execution in the marketplace every day.
 Be insatiably curious.
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Work Smart:
 Act with urgency.
 Remain responsive to change.
 Have the courage to change course when needed.
 Remain constructively discontent.
 Work efficiently.
Act like Owners:
 “Be accountable for our actions and inactions
 Steward system assets and focus on building value
 Reward our people for taking risks and finding better ways to solve
problems
 Learn from our outcomes -- what worked and what didn’t” (The Coca-
Cola Company, 2014).
Be The Brand:
 Inspire creativity, passion, optimism and fun (The Coca-Cola Company,
2014).
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2.2 Organizational Design:
Before the nineties the Coca-Cola company was having a centralize system of control,
but after sometime they realized that if they had to meet the demands of the customers
they should adopt a decentralized system in which the authority of decision making is
distributed between different managers so that every sector can be managed
effectively. This system was implemented in the nineties by the company’s board of
directors (Gilhuly, 2014). Now the organization is having two groups who are
responsible for operating:
 Bottling Investments
 Corporate
Operating groups are also divided by different regions i.e. Africa, Asia, Middle East,
European Union, Latin America, North America etc. All the divisions are further
divided into geographical regions. This allows the local market to involve in decision
making, due to this the organization responds quick to the changing demands of the
market, this helps the upper level managers to concentrate on the long term planning
of the organization.
The company’s corporate division is filled with different departments which are as
follow:
 Finance Department
 Human Resource Department
 Marketing Department
 Innovation Department
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 Planning Department
Some of the above mentioned departments are in the lower levels in the regions of the
company, the decision making job is most of the times done by the top level
management.
Sharing the latest information with each other is very fast by all the departments and
by such activities the organization appears to be doing their job effectively by
balancing standardization and mutual adjustment. The organization has made the
Code of conduct which is a guidebook for the employees on how they should act? The
disciplinary actions are the main subjects of the code of conduct (The Coca-Cola
Company, 2014).
The larger role in the organization’s success is played by the mutual adjustments due
to the changes brought upon by the CEO and Chairman of the company 2004, Nevile
Isdell. The turnover has been reduced because the employees feel more engaged in the
work. The organization’s growth rates increased and the return of equity for
stockholders went from a negative return to a 20 percent return. The changes brought
by Isdell proved to be good for the organization and the employees were also happy
with the change which is reflected by the end results of the company (Gilhuly, 2014).
Such balances are indispensible because due to them the employees feel some
flexibility and it also gives some time to the organization to forecast their future plans
about the organization. The structure of the Coca-Cola Company is made up of both
“Mechanistic & Organic” models. The Coca-Cola Beverage Company mainly focuses
on the responsiveness (Gilhuly, 2014).
All the complex integrating mechanisms are the characteristics of the organic
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structure. The company uses survey and interviews for the flow of information from
bottom to up, latterly the information is exchanged over the intranet. The surveys
have made the Coca-Cola Company to believe of simplification and standardization.
Centralization and standardization are associated with mechanistic structure (Gilhuly,
2014).
The mix of the two structures looks to be ideal for the organization. When
organization wants to appeal to a huge independent market, on one hand it requires to
be flexible and on the other hand to be more efficient in production. Coordination is
easy for the company when it uses complex integrating mechanisms. Due to
centralization the organization goals and organizational choices are kept align. Now
that the information in the company is flowing very easily, the top level of
management will receive the information much faster due to the organization’s
flexibility and responsiveness.
Recently there was a shift in the organization to make it more decentralized and
organic which corresponded with quite uncertainty with organization.
2.3 Organization Structure:
Coca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled
through a vertical hierarchy, with decision-making authority residing with the
company’s upper management. Daily and routine decisions are made by the line
managers at the middle level (Narayan, 2010).
Coca-Cola has more than 700,000 system employees, including their bottling
partners. The company’s operations reach over 200 countries worldwide, with six
geographic operating segments. Coca-Cola’s head office is responsible for providing
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the company with an overall direction and support to the regional structure. The
company’s Executive Committee makes key strategic decisions for the company. The
Chair of the Executive Committee acts as a figurehead for the company and chairs the
board meetings. He is also the CEO and is the senior decision maker (Narayan, 2010).
Each division of the company has a marketing manager, public affairs director,
finance director, etc. When one of these divisions is planning to do something, an
advertising campaign for example, the division has to communicate with their
superiors to get approval. Since the company’s hierarchy is so tall, communication
has to travel back to corporate headquarters in the U.S, where the Executive
Committee has the final decision making power for activities the divisions have
proposed. Below is an organizational chart of the company (Gilhuly, 2014).
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2.4 Functional Departments:
On the basis of functional approach the Coca-Cola Company is divided into different
departments. Grouping of employees is done on the basis of their common skills and
work activities. Such kind of approach helps the company in solving their problems
and it also make the less the need of training the employees specially. The general
manger is head of all the departments all the department have to report to the general
manager in the Coca-Cola Company. There are five major departments in the
company which are as follow:
 Production Department
 Industrial Relations Department
 Sales and Marketing Department
 Human Capital Department
 Finance Department
Production Department: This department looks around all the production of the
company. All plants in the country are in under its control.
Industrial Relation Department: This department deals with the problems of the
employees. The department listen the problems of the employees and send them to the
high authorities for settling them up and stop them from becoming a hurdle in the
work progress of the company.
Sales and Marketing department: This department makes sure that the product is
easily available in the market for the customers to buy and deals with the issues of
advertisement, promotion, and distribution of the product.
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Human Capital Department: This department takes care of the efficient workers of
the company, they select some efficient workers of in the company recommend their
names for promotion in job so that the workers remain happy and don’t leave the
company. Management level employees are dealt by the department.
Finance Department: The department is concerned with cost and price of the
products produced by the company. It also tackles with import related issues of the
company. Finance department is assisted by the sales and marketing department in
making invoices and payroll entries(The Coca-Cola Company, 2014).
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Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced
to close down its operation by a socialist government in the drive for self sufficiency.
After 16 years of absence, coca cola returned to India and witnessed a different
culture and economic platform. During their absence, Parle brothers introduced a new
type of cola called THUMS UP. Along with, they also formulated a lemon flavoured
drink, LIMCA, and mango flavored, MAAZA. In 1993, coca cola bought the whole
Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed
that with the tried and tested products of Parle they will be able to regain their throne
in the Indian soft drink market. Pepsi having a 6 year head start helped revive the
demand for global cola but it was not easy for the soft drink giant (coca cola) to return
to India. Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the ‘American’ way of life, which turned out
to be a mistake.
Coca-Cola invested heavily in India for the first five years, which got them credit of
being one of the biggest investor in the country; however, their sales figures were not
so impressive. Hence, they had to re-think their market strategies. Coca-Cola learned
from Hindustan Lever that reducing their will result in more turnover, hence leading
to profit. They launched an extensive market research in India. They ascertained that
in India 3 As must be applied; Affordability, Availability and Acceptability.
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Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”,
“Narial Pani”, “Lassi” etc. and reached to a conclusion that competitive pricing was
unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.
Further, they had different advertising campaigns for different regions of the country.
In the southern part, their strategy was to make Bollywood or Tamil stars to endorse
their products. In various regions they tried portraying coca cola products with
different regional food products. One of the most famous ad campaigns in India was
‘Thanda Matlab Coca-Cola’; they featured the same quote with different regional
entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market
share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33%
in Packaged water Segment, compared to its arch rival, Pepsi. Diversifying their
product range and having a competitive pricing policy, they have regained their
throne. With virtually all the goods and services required to produce and market Coca-
Cola being made in India, the business system of the Company directly employs
approximately 6,000 people, and indirectly creates employment for more than
125,000 people in related industries through its vast procurement, supply, and
distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the
Company, with another 25 being owned by franchisees. That apart, a network of 21
contract packers manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate
the narrow alleyways of Indian cities – constantly keep our brands available in every
nook and corner of the Country’s remotest areas.
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2.6 PRODUCTS OF COCA-COLA INDIA
COCA-COLA:
In India Coca-Cola was leading soft drink till 1977 when Government policies
necessitated its departure. Coca-Cola made its return to the country in 1993 and made
significant investments to ensure that the beverage is available to more and more
people, even in remote and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with
passions of India – Cricket, movies, music & food. Coca-Cola’s advertising
campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had
entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign
“Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s
favorite soft drink brand.
GLASS PET CAN FOUNTAIN
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LIMCA:
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz
and lemoni bite combined with the single minded proposition of the brand as the
provider of “Freshness”.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu”
+ “Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has
been the original thirst choice of millions of customers for over 3 decades.
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THUMS UP:
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993.
Thums up is known for its strong, fizzy taste and it confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys.
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SPRITE:
Sprite a global leader in the lemon lime category is the second largest sparkling
beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective has
managed to be a true teen icon.
RGB PET CAN FOUNTAIN
200ml, 300ml 500ml, 600ml, 1250ml,
1500ml, 2000ml, 2250ml
330 ml VARIOUS
SIZES
FANTA:
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a
strong market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth
brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not
just uplifts feelings but also helps free spirit thus encouraging one to indulge in the
moment. This positive imagery is associated with happy, cheerful and special times
with friends.
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GLASS PET CAN FOUNTAIN
200ml, 300ml 500ml, 1.5L, 2L,
2.25L, 500ml, 100ml
330 ml VARIOUS
SIZES
MINUTE MAID PULPY ORANGE:
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that
eliminated 80% of the water in the orange juice, forming a frozen concentrate that
when reconstitute created orange juice. They branded it Minute Maid a name
connoting the convenience and the ease of preparation. Minute Maid thus moved from
a powdered concentrate to the first ever orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to
further extend the leadership of Coca-Cola in India in the juice drink category.
Available in 3 PET pack sizes i.e. 400ml, 1 liter, 1.25 liters.
MAAZA:
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very
spirit of mangoes. Universally loved for its taste, colour, thickness and wholesome
properties, Maaza is the mango lover’s first choice.
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RGB PET POCKET MAAZA
200ml, 250ml 250ml, 600ml, 1.2L 200ml
KINLEY:
The importance of water can never be understated, Particularly in a nation such as
India where water governs the lives of the millions, be it as a part of everyday ritual or
as the monsoon which gives life to the sub continent. Kinley water comes with the
assurance of safety from the Coca-Cola Company.
Available in PET 500ml and 1000ml.
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2.7 SWOT ANALYSIS OF COCA-COLA COMPANY
Fig -- SWOT ANALYSIS OF COCA-COLA
STRENGTHS
1. BRAND RECOGNITION AND
REPUTATION WORLDWIDE
2. STRONG MARKETING AND
ADVERTISEMENT
3. WELL KNOWN SPONSORS ON IN
THE WORLD
4. STRONG DISTRIBUTION
NETWORK
WEAKNESS
1. ABSENCE IN HEALTH
BEVERAGES AND FOCUSING
2. COMPETITION WITH PEPSI
3. NEGATIVE PUBLICITY
OPPORTUNITIES
1. INCREASING SALES
OPPORTUNITIES ON DEVELOPING
NATIONS
2. BOTTLED WATER CONSUMPTION
GROWTH
3. SUPPLY CHAIN IMPROVEMENTS
4. INCREASING DEMAND FOR
HEALTHY FOOD AND BEVERAGES
THREATS
1. INTENSE COMPETITION
2. CHANGING HEALTH
CONSIOUSNESS OF THE SOCIETY
3. WATER SCARCITY
SWOT
ANALYSIS
P a g e | 30
S.W.O.T. ANALYSIS:
SWOT stands for strength, weakness, opportunities and threats. SWOT analysis is an
overall evaluation of a company current state by looking at its strength, weakness,
opportunities and threats.
SWOT analysis is considered to be a source of information for strategic planning
which aims to develop full awareness of the company situation that will help in
strategic planning and decision making of the company.
 Strengths
Strengths are features of the business that provide an advantage over others in the
industry. It includes organizational capabilities such as processing capabilities,
financial resources, Products and services and customer locality.
Coca-Cola company strength include the following
1. Brand Recognition & Reputation Worldwide
Coca Cola is an extremely recognizable company. Its products have Global reach with
presence in over 200 countries.
Popularity is one of its superior strengths that are incomparable with other
companies. Coca Cola is known very well worldwide. It's branding is easily
recognized. Their products are well known to major parts of the world and customers
accept the products.
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Coca-Cola is the leading player in the global beverage industry that is found
everywhere in the world.
2. Extensive Diversified Rang of Products
Coca-Cola sells and manufactures many different products including carbonated
drinks and energy drinks.
The company produces several products that are known worldwide and some products
that are produced on specific countries, for example Ambasa is a Soft drink sold in
Japan and Korea,
Apollinaris is a German naturally sparkling mineral water owned by Coca-Cola,
Bibo is a Fruit flavored juice produced in Turkey, South Africa, Mozambique and
Canada.
3. Strong Marketing & Advertisement
Coca-Cola has got the best incredible marketing teams that have excellent marketing
and advertisement techniques. They dedicate themselves on each and everything
within their capability and power in order to sell their products.
The major technique they use in their advertisement and marketing techniques is by
associating celebrity and brand amassadors in their advertisement, For example now
there is coke studio which basically advertise cocacola using celebrities in form of
songs, In Tanzania there is Lady Jay dee, Diamond and others in different countries.
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4. Strong Distribution Network
Coca-Cola is considered to be the world largest market share that holds the largest
beverage market share in the world which is about 40%. Its major competitor Pepsi
covers 31% and the remaining shares are covered by other companies.
5. Customer Loyalty
Another strength which is very important to Coca Cola is customer loyalty. Eighty
percent of their profit comes from 20% of their loyal customers.
Many people/families are extremely loyal to Coca Cola. It would not be rare to
constantly find bottles and cases of a product such as coke in a house. It seems that
some people would drink coke religiously like some people would drink water and
milk. This is an improbable feat. Customers will continually purchase these products,
and will probably do so for a very long time. If two parents were good Coca Cola
drinkers, this will be passed down do their children as they grow loyal to the
company. With Coca Cola’s ability to sell their product all over the world, customers
will continue to buy what they know and what they like which are the Coca Cola
products.
6. Well known Sponsors in the World
Coca-Cola is well known sponsors in the world. They have Long association with
international sports events, sponsorships etc
Coca-Cola have sponsored different Olympics games in different countries
The Coca-Cola Company is one of the longest-standing corporate partners of FIFA;
Coca-Cola is the official sponsor of Fifa World cup
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7. Strong Distribution Network
Coca-Cola has Strong and efficient supply chain network, ensuring that all the
products are available even on the most places in the world including Africa, Asia,
America and Europe markets.
It has the largest distribution network because of the demand in the market for its
products. On the other hand, due to this successful distribution network, Coca cola has
been able to command such a high market presence.
 Weakness
These are characteristics that place a company at a disadvantage relative to others;
they reduce the capability of the firm to attain its goals and future growth. Weakness
include poor technologies, Poor employee performance and limited financial
resources..
Coca cola consist of the following weaknesses
1. Absence in Health Beverages & Focusing
Coca-Cola does not produce any health beverage; Most of their products are not good
to health and results to obesity since they contain large amount of calories. Societies
are now becoming aware of obesity harmful effects, the business environment is
changing and people are taking measures to ensure that they are not obese, this means
the consumption of beverages in developed countries might go down as people will
prefer a healthy alternative, hence lost of customers to coca-cola company if they
don’t produce health beverages.
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2. Competition with Pepsi
Pepsi is usually in second to coke in sales. It out sales Coca-cola in some markets
areas, for example in Oman and Saudi Arabia they prefer Pepsi rather than Coca-
Cola. Also in India and Pakistan they prefer Pepsi, Pepsi seems to sponsor most of the
cricket teams in India and Pakistan
3. Negative Publicity
The presences of traces of pesticides in the cola beverages have caused damage to the
brand image. People have blamed Coca cola for mixing pesticides in the water to
clear contaminants Negative publicity occur in India during September 2007 where
Coca-Cola was accused of selling products with pest side residue. This reduced the
Coca-Cola market in India as well as some places in the world.
Also on water management issues several groups have raised lawsuits in the name of
Coca cola because of their vast consumption of water even in water scarce regions
 Opportunities
Opportunities refers to chances which arise that can make a company earn greater
profit in its business environment
They occur when an organization can take benefit of the current situation in its
environment to plan and execute strategies that enable it to become more profitable.
The following are the opportunities of the Coca-Cola company.
1. Increasing Sales Opportunities on Developing Nations
Developing nations such as India and Tanzania do have hot summer. The
consumption of cold drinks in these places during hot summer is almost doubled.
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Thus the higher consumption in developing business environment can be a good
opportunity for Coca cola to increase its revenue
2. Bottled Water Consumption Growth
With hygiene becoming a major factor in the consumption of water, packaged
drinking water has found its way into people’s mind. Coca cola has a presence in the
packed drinking water segment though Kinley. Although Kinleys expansion is slow as
of now, Kinley has a huge potential of expansion. Thus Coca cola as a company
should focus on the expansion of Kinley as a brand and take it up to Bisleri ‘s level of
trust
3. Supply Chain Improvements
Supply chain can be a major cost sink hole with the transportation costs always rising.
Coca cola’s complete business is based on transportation and distribution. There will
always be possible improvements in this area. Thus Coca cola should keep strict
watch on its Supply chain and keep improving to bring the cost down
4. Increasing Demand for Healthy Food & Beverages
The marketing of healthy beverages and food is widely seen and it is still growing in
demand. The company can try to create and provide more healthy drinks in the market
since people in the world are paying more attention to their health at present. Healthy
drink markets will have great potential in the future. If Coca-Cola can produce healthy
beverages and food in the future, it will obviously boost its revenue
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 Threats
Threats are elements in the environment that can cause trouble to the business.
Threats include competitors, changing customer needs, Changes in government
regulations and Changes in economic of the country.
Coca cola does face the following threats.
1. Intense Competition
Coca-Cola is getting intensive competition from different manufactures both locally
and internationally. Pepsi is the leading competitor of Coca-Cola; Hence Coca-Cola
should have innovative ideas in order to make its past customers to stay, grab more
future customers and to continue leading the beverage market industry worldwide.
For example In Tanzania Coca-Cola faces local competition from Bakhresa and Mohd
Enterprises Company,
2. Changing Health Consciousness of the Society
There are changes in consumer preference in the society, Societies focus on drinking
health beverages. People are changing their altitudes and keep their mind on
consuming health drinks in order to avoid diseases such as obesity.
Today, there is a trend of consuming healthy drink and many existing drink
companies have tried to invent a great variety of innovative drinks. If the Coca Cola
Company only insists on providing tasty soft drinks and little healthy drinks, its sales
must be affected.
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3. Water Scarcity
Water is the major threat to Coca cola. The threat here is that water scarcity is on the
rise, with the climate changing, and regions of various countries facing scarcity of
water, sooner or later someone might raise fingers on beverage companies.
If water is limited or rationed, Coca cola can experience a major downfall in their
revenue and capacity of distribution.
All in all this a SWOT analysis of the Coca-Cola that identifies some of the strength,
weakness opportunities and threats of the company
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2.8 PESTEL ANALYSIS for COCA-COLA
A PESTEL analysis is a framework or tool used by marketers to analyse and monitor
the macro-environmental (external marketing environment) factors that have an
impact on an organisation. The result of which is used to identify threats and
weaknesses which is used in a SWOT analysis.
PESTEL stands for:
 P – Political
 E – Economic
 S – Social
 T – Technological
 E – Environmental
 L – Legal
 Political Analysis
Non-alcoholic beverages fall within the food category under the FDA. The
government plays a role within the operation of manufacturing these products in terms
of regulations. There are potential fines set by the government on companies if they
do not meet a standard of laws. The following are some of the factors that could cause
Coca-Cola company's actual results to differ materially from the expected results
described in their underlying company's forward statement:
Changes in laws and regulations, including changes in accounting standards, taxation
requirements, (including tax rate changes, new tax laws and revised tax law
interpretations) and environmental laws in domestic or foreign jurisdictions.
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Changes in the non-alcoholic business environment. These include, without
limitation, competitive product and pricing pressures and their ability to gain
or maintain share of sales in the global market as a result of action by competitors.
Political conditions, especially in international markets, including civil unrest ,
government changes and restrictions on the ability to transfer capital across borders
Political structure and legal considerations also have impinged on Coco-Cola
Company’s strategies. Governments of some Arab nations boycotted Coca-Cola’s
products due to a political dispute and discontented with the company for maintaining
distributors in Israel.
 Economical Analysis
Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca-
Cola to exploit the economies of scale that was gained by its global marketing and at
the same time making its products appeal to local taste, which these have earned the
company an enormous profits quarterly.
As Coca-Cola has expanded over the decades or even nearly a century, the company
has benefited from the various cultural insights and perspectives of the societies in
which business is done. No doubt of the remarkable experience it has, it is still very
committed to local markets, to paying attention to what people from different cultures
and backgrounds like to drink, and where and how they like to drink it, to remain
competitive and to develop more new drinks to satisfy its markets.
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Now, the estimated brand equity of Coca-Cola is $84billion, market share of more
than 50 percent in beverage industry globally and about 70 percent of its income
comes from countries outside United States. Every 10 seconds, 126,000 people in the
whole world, choose to reach out for one of The Coca-Cola Company brands, and it is
the company’s mission to make that choice exciting and satisfying, every single time.
Previously the U.S. economy was strong and nearly every part of it was growing and
doing well. However, things changed. Before the attacks on September 11, 2001, the
United States was starting to see the economy recover slightly and it is only just
recently that they achieved the economic levels. Consumers are now resuming their
normal habits, going to the malls, car shopping, and eating out at restaurants.
However, many are still handling their money cautiously. They believe that with
lower inflation still to come, consumers will recover their confidence over the next
year. As researching for new products would cost less the Coca-Cola Company will
sell its products for less and the people will spend as they would get cheap products
from Coca-Cola
 Social Analysis
Foreign environment factors have influenced the Coca-Cola’s strategies in
international marketing. Culture has a tremendous effect on people’s preferences and
perception. Language is one of the aspects of culture that marketers must take care of,
in term of translating product name, slogans and promotional messages so as not to
convey the wrong meaning. Coca-Cola did not look much into this aspect when
P a g e | 41
entering into the markets of countries like China and Taiwan as the literal translation
of Coca-Cola in Chinese characters mean, “bite the wax tadpole”
Changes are necessary in international marketing for consumer’s products, as it is
important that the products suit one’s taste, preferences and fulfill one’s needs. Coca-
Cola has continued changing, improving and developing new drinks to appeal to local
tastes.
After discovering that Coke did not appeal as much to Japanese consumers, Coca-
Cola developed over 30 new drinks for the Japanese market, which inclusive of Asian
tea, English tea, coffee and fermented-milk drink
In China, Coca-Cola has also begun the similar strategy of introducing beverages
developed for the taste buds of local market. It launched a fruit juice drink called Tian
YuDi (Heaven and Earth) specifically for the Chinese market with planning of
introducing the market with a Chinese iced tea and soy milk drink.
Many U.S. citizens are practicing healthier lifestyles. This has affected the non-
alcoholic beverage industry in that many are switching to bottled water and diet colas
instead of beer and other alcoholic beverages. Also, time management has increased
and is at approximately 43% of all households. The need for bottled water and other
more convenient and healthy products are in important in the average day-to-day life
Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition.
There is a large population of the age range known as the baby boomers. Since many
P a g e | 42
are reaching an older age in life they are becoming more concerned with increasing
their longevity. This will continue to affect the non-alcoholic beverage by increasing
the demand overall and in the healthier beverages.
 Technological Analysis
Some factors that cause company's actual results to differ materially from the
expected Results are as follows:
The effectiveness of company's advertising, marketing and promotional programs.
The new technology of internet and television which use special effects
for advertising through media. They make some products look attractive. This helps in
selling of the products. This advertising makes the product attractive. This technology
is being used in media to sell their products.
Introduction of cans and plastic bottles have increased sales for Coca-Cola as these
are easier to carry and you can bin them once they are used.
As the technology is getting advanced there has been introduction of new machineries
all the time. Due to introduction of this machineries the production of the Coca-Cola
company has increased tremendously then it was few years ago
Coca-Cola has six factories in Britain which use the most state-of the-art drinks
technology to ensure top product quality and speedy delivery. Europe's largest soft
drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield
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factory has the technology to produce cans of Coca-Cola faster than bullets from a
machine gun
 Legal Analysis
Legal aspect focuses on the effect of the national and world legislation. The Coca
Cola Company receives all the rights applicable in the nature of their business
and every inventions and product developments are always going into the patented
process
 Environmental Analysis
Environmental analysis examines the local, national and world environmental issues.
According to the data of the Coca Cola Company, all of the facilities are strictly
monitored according to the environmental laws imposed by the government.
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2.9 The Coca-Cola Company versus PepsiCo: A battle of
giants
 Dominant players
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP), are dominant players in the
soft drinks market. Both companies own a strong portfolio of liquid refreshments and
several brands that generate more than $1 billion in revenues. The two soft drink
behemoths have extensive distribution networks and geographic presence in over 200
countries.
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 Valuation
We use the price-to-earnings (or PE) ratio to value mature companies like Coca-Cola
and PepsiCo that are similar from a shareholder’s standpoint. Between late 2010 and
2012, Coca-Cola was trading at a higher PE ratio. But since early 2013, PepsiCo is
trading at similar PE multiples as Coca-Cola.
PepsiCo’s revenues increased by 1.4% in 2013 and its diluted earnings per share (or
EPS) increased by 10.2%. However, Coca-Cola’s revenues declined by 2.4% and its
diluted EPS declined by 3.6% in 2013.
 PepsiCo is more diversified
Unlike Coca-Cola, which focuses only on beverages, PepsiCo has a strong presence in
the snack food category. This diversified model helps PepsiCo fare better through the
current challenging times, when soda demand is continually declining. In 2013,
PepsiCo’s food business accounted for 52% of its $66.4 billion revenues and includes
well-established brands like Quaker, Lays, and Cheetos. Snacks and beverages are
complementary food categories, and PepsiCo benefits from this combination.
 Coke’s dominance
According to Beverage Digest, in 2013, Coca-Cola held a 34.2% share of the liquid
refreshment beverages (or LRB) market, which includes carbonated soft drinks (or
CSD), bottled water, and non-carbonates like sports drinks, ready-to-drink teas, and
juice drinks. PepsiCo held 25.8% of the LRB market.
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Coca-Cola is the undisputed leader in the CSD market, with a share of 42.4% in 2013.
It’s ahead of PepsiCo, which had a 27.7% market share. In 2013, Coca-Cola’s CSD
volume was down by 2.2%, while PepsiCo declined at twice that rate, 4.4%. Dr
Pepper Snapple Group (DPS) held the third-largest US CSD market share at 16.9%.
Coca-Cola’s leading brands, Coca-Cola (or Coke) and Diet Coke, led the CSD market
with 17.4% and 9.0% market shares, respectively, in 2013. PepsiCo’s key beverage
brands, Pepsi and Mountain Dew, trail Coca-Cola’s brands with a market share of
8.9% and 6.9%, respectively.
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2.10 SPLASH BAR: A Growth Engine
Let’s see how Splash Bar works
“Rural consumers can taste our beverages in Rs 5 cups; Coke Zero in
cities soon”: Venkatesh Kini
Interview with President, India and South West Asia, Coca-Cola
Venkatesh Kini is no stranger to India. After all, it’s the country where he oversaw
the company’s earlier marketing foray. Just a few months after he took over as
President, India and South West Asia, Coca-Cola, he is focusing on rural markets and
looking at some big launches for the year.
In an interview with Surajeet Das Gupta & Sounak Mitra, Kini talks about his
experiments to make consumers taste Coke for a mere Rs 5 as well as the launch of a
string of zero- and low-calorie products for the health-conscious.
1). The next big challenge for you is to penetrate the rural markets. Will you
address this by introducing differentiated products from what you sell in urban
P a g e | 48
markets and how will you break the price barrier before your products? What
are the distribution challenges?
During the past two-three years, rural contribution has been growing faster than that
of the urban markets because of an improvement in infrastructure, which has made
delivery easier, and an increase in prices of farm output leading to higher incomes.
First, the rural consumers don’t look for different products or brands. They want the
same thing that you are serving to the urban consumers. However, we have to find
ways to serve them cost-effectively.
2). So what are you doing to ensure affordable prices?
We are experimenting with new models. One of them we are trying is the Splash Bar.
This was pioneered by Hindustan Coca-Cola. It has developed a piece of equipment
— a dispenser that does not require expensive devices. A two-litre bottle can be
placed, through which we can serve in smaller cups of 100-150 ml without
compromising the quality and chilling of beverages. These can be put in small retail
outlets. We have tested this in Gujarat. Then we have ‘Happiness on the go’. An open
truck with a fountain machine will offer 100-150 ml beverages in small cups at Rs 5
and 200-300 ml at Rs 8-10, depending on the location. We have tested this in three
states, including Gujarat and Karnataka, and will scale it up. This is a good way to
offer consumers the first taste of Coca-Cola, Sprite or Thums Up at Rs 5.
3). What is your target from the rural market in terms of sales?
Today, rural markets account for one-third of our total volume. Going by the
urbanization trends, at one point in time rural contribution will go up to 40-45 per cent
P a g e | 49
of our total volume as it is growing faster than the urban. After all, per capita
consumption there is about six times lower than in urban areas.
Splash Bar Designs:-
Weight (Splash Bar) 34 Kg
Weight (whole unit – with cabinet) 102 Kg
Power Input 178W
Power Consumption 2.5 units per day
Dimensions in mm (H * W * D) 1930 x 700 x 590
Cost Rs. 42,000/-
Margin Structure from 1st January 2015:-
MRP per bottle - 2.25 L 80
Cups per bottle 22
Cups per Case 198
Cost of Beverage per Case 654.50
Cost of Cups per Case 137.50
Total Cost 792.00
Selling Price per Serve 5
Buying Price per serve(Cup price) 4
Selling Price per Case 990
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Buying Price per Case( Cup price) 792
Percentage Margin 25%
Working of Splash Bar:-
Features of Cabinet:-
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Hygiene & Maintenance:-
Splash Bar for Future:-
Splash Bar in Cabinet - mandatory .
Daily change of nozzle.
Sanitation by JD solution.
Operations training with certification given to
retailers.
Complains pertaining to SB & cabinet will be resolved
within 2 to 3 days.
Drives transactions and recruits new consumer
Helps maintain Price Point
Higher Margins for Customers
Entry in outlets where RGB isn’t sold
First Movers Advantage
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Key Success Parameters:-
Parameters
of Success
Identification
of Right
Outlet
Proper
Installation
Activation
Daily
Cleaning/
Sanitization
Sales
Tracking
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PART-II
CHAPTER 3:
STUDY OF THE
SELECTED RESEARCH
PROBLEM
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3.1 OBJECTIVE OF THE STUDY
1. The main objective of the project is to find out potential market of SPLASH
BAR introduced by coca-cola.
2. To conduct environmental analysis (i.e. PESTLE and SWOT) of coca-cola.
This would help us identify areas of potential growth.
3. To study the Consumer behaviour behind the purchase of Coca-Cola products.
4. To understand the Distribution Mechanism of Coca-Cola products.
5. To analyse the Vendor behaviour behind the purchase of Coca-Cola products.
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3.2 SCOPE OF THE STUDY
This study basically tries to find out the potential market of SPLASH BAR introduced
by Coca-cola. It also tries to discover the preferences of the customers when posed
with a choice between Coca-Cola and Pepsi. It is primarily directed to the general
public but was done only in
1. GUMTI NO. 5,
2. 80 FEET ROAD,
3. AWAS VIKAS NO. 1 and
4. NEHRU NAGAR.
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3.3 LIMITATIONS
1) Limited study area: The study was limited to four areas of Kanpur city i.e.
GUMTI NO. 5, 80 FEET ROAD, AWAS VIKAS NO. 1 and NEHRU
NAGAR.
2) Non representative sample: In this research project a sample survey was
conducted. A sample of 100 respondents was selected. So such sample size
cannot be said to be the true representative of the universe
3) Human element: The human factor in participation of research is one of
influencing limitation factor.
4) Shortage of time: The time period of study was very limited. It is very difficult
to have in detail study on project work due to limited time period. The period
of 4 to 6 weeks is not enough for the proper study of the project.
5) Inadequate data: The data provided was not up to the mark due to which we
faced problems in our research.
6) Biasness in the responses: The answers provided by the respondents suffer
from biasness.
7) Cost Factor: It was not possible to conduct extensive research due to paucity
of funds.
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3.4 RESEARCH DESIGN AND METHODOLOGY
3.4.1Research Design
Research:
Research is a common parlance which refers to search for knowledge. It is a
procedure of logical and systematic application of the fundamentals of science to the
general and overall questions of a study and scientific technique, which provide
precise tools, specific procedures, and technical rather philosophical means for getting
and ordering the data prior to their logical analysis and manipulating different type of
research designs is available depending upon the nature of research project,
availability of manpower and circumstances.
According to D. Slesinger and M. Stephenson research may be defined as “the
manipulation of things, concepts or symbols for the purpose of generalizing to extend,
correct or verify knowledge, whether that knowledge aids in the construction of
theory or in the practice of an art”. Thus it is original contribution to the existing stock
of knowledge of making for its advancement. In short, the search of knowledge
through objective and systematic method of finding solution to a problem is research.
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. In fact, the research design is the conceptual structure within which
research is conducted. This research was descriptive in nature.
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Descriptive research:
The research undertaken was a descriptive research as it was concerned with specific
predictions, with narration of facts and characteristics concerning potential market of
Splash Bar.
This study is a descriptive research as the attitudes of the customers who buy the
products have been stated. Through this study we are trying to analyze the various
factors that may be responsible for the preference of Coca-Cola products.
3.4.2 Sample Design
The following factors have been decided within the scope of sample design:
Universe of study: Universe of the study means the persons who are the customers of
soft drink in the world.
i) Theoretical: It covered the individuals who are the customers of Soft Drink in
the world.
ii) Accessible: It covered the individuals who are the customers of Soft Drink in
Kanpur who are within our reach.
Sample Size: A sample of minimum respondents was selected from various areas of
Kanpur. An effort was made to select respondents evenly. The survey had:-
Sampling Tools Respondents Number
Questionnaire Customers 75
Vendors 25
Total 100
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Sample Unit: In this project sampling unit consisted of the various individuals who
consumed as well as sold the soft drinks.
Sampling Technique: For the purpose of research convenient sampling technique was
used.
Sampling Frame: It consisted of various sources from where information about the
respondent is extracted
3.4.3DATA COLLECTION AND ANALYSIS
DATA COLLECTION
There were two types of data sources used in this research. These were
(a)Secondary data
Secondary data is the data collected from already been use or published information
like journals, diaries, books, etc .In this research project, secondary source used were
various journals, and website of various online journals.
(b)Primary data
Primary data is the data collected for the first time from the source and never have
been used earlier. The data can be collected through interviews, observations and
questionnaires. In this project, an appropriate questionnaire was designed which was
filled by the customers & vendors of Soft Drink to know their opinions regarding the
potential market of Splash Bar.
P a g e | 60
DATA ANALYSIS
Tools of Presentation:
It means what all tools are used to present the data in a meaningful way so that it
becomes easily understandable. In this research tables and graphs were used for
presenting the data.
Tools of Analysis:
In this research the tools of analysis used were percentages. SPSS software were used
to conduct Friedman Anova, Reliability analysis and Factor Analysis.
3.4.4 FIELD WORK
The study was conducted in :
1. GUMTI NO.5,
2. 80 FEET ROAD,
3. AWAS VIKAS NO.1 &
4. NEHRU NAGAR.
 The questionnaires were given to the respondents to fill in order to get their
feedback.
 Questions were read out to the respondents and the answers were noted.
P a g e | 61
CHAPTER 4:
DATA ANALYSIS &
INTERPRITATION
P a g e | 62
1. DATA ANALYSIS & INTERPRETATION:-
4.1 Analysis of vendor questionnaire
Locality
Freque
ncy Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
AVAS VIKAS 1 7 28.0 28.0 28.0
GUMTI NUMBER 5 6 24.0 24.0 52.0
NEHRU NAGAR 5 20.0 20.0 72.0
P ROAD 7 28.0 28.0 100.0
Total 25 100.0 100.0
P a g e | 63
GENDER
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
MALE 18 72.0 72.0 72.0
FEMALE 7 28.0 28.0 100.0
Total 25 100.0 100.0
P a g e | 64
TYPE OF SHOP
Freque
ncy Percent
Valid
Percent
Cumulative
Percent
1
2
3
E & D 11 44.0 44.0 44.0
GROCERY 10 40.0 40.0 84.0
CONVENIENCE 4 16.0 16.0 100.0
Total 25 100.0 100.0
P a g e | 65
WHAT IS AVERAGE FOOTFALL OF YOUR SHOP
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
BELOW 100 1 4.0 4.0 4.0
100-200 6 24.0 24.0 28.0
200-300 13 52.0 52.0 80.0
300 AND ABOVE 5 20.0 20.0 100.0
Total 25 100.0 100.0
P a g e | 66
What do you prefer to stock/sell?
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
PEPSI 8 32.0 32.0 32.0
COCA COLA 15 60.0 60.0 92.0
OTHERS 2 8.0 8.0 100.0
Total 25 100.0 100.0
P a g e | 67
While purchasing the product, what factor do you keep in your mind?
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
SCHEME 5 20.0 20.0 20.0
PRICE 2 8.0 8.0 28.0
DEMAND 12 48.0 48.0 76.0
AVAILABILITY 6 24.0 24.0 100.0
Total 25 100.0 100.0
P a g e | 68
SPLASH BAR :- Are you aware of it
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
YES 14 56.0 56.0 56.0
NO 11 44.0 44.0 100.0
Total 25 100.0 100.0
P a g e | 69
Are you interested in selling selective cold drinks of Coca-cola(Coke & Sprite)
with SPLASH BAR @ Rs. 5
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
STRONGLY
INTRESTED
8 32.0 32.0 32.0
INTRESTED 8 32.0 32.0 64.0
NEUTRAL 8 32.0 32.0 96.0
DISINTRESTED 1 4.0 4.0 100.0
Total 25 100.0 100.0
P a g e | 70
Do you feel that soft drinks sold at low price have poor quality ?
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
YES 10 40.0 40.0 40.0
NO 15 60.0 60.0 100.0
Total 25 100.0 100.0
P a g e | 71
What is your perception about the maintenance & cleaning of SPLASH BAR?
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
HECTIC & DIFFICULT 5 20.0 20.0 20.0
SIMPLE & EASY 16 64.0 64.0 84.0
NOT POSSIBLE &
IRRITATING
4 16.0 16.0 100.0
Total 25 100.0 100.0
P a g e | 72
What do you think about Quantity offered @ Rs.5?
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
1
2
3
APPROPRIATE 9 36.0 36.0 36.0
200@ Rs. 10 15 60.0 60.0 96.0
NOT
APPROPRIATE
1 4.0 4.0 100.0
Total 25 100.0 100.0
P a g e | 73
Area of Improvement :-
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
PRICE 2 8.0 8.0 8.0
QUANTITY 4 16.0 16.0 24.0
MORE OPTION IN
DRINK
10 40.0 40.0 64.0
TAKE AWAY 1 4.0 4.0 68.0
FIZZYNESS 8 32.0 32.0 100.0
Total 25 100.0 100.0
P a g e | 74
Do you feel that with SPLASH BAR you will be able to increase your
Business & Profit?
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
STROGLY
AGREED
7 28.0 28.0 28.0
AGREED 5 20.0 20.0 48.0
NEUTRAL 11 44.0 44.0 92.0
DISAGREE 2 8.0 8.0 100.0
Total 25 100.0 100.0
P a g e | 75
4.2 HYPOTHESIS TESTING IN CASE OF VENDORS
1. Hypothesis
 Null hypothesis: H0: there is no significant relationship between interest of
vendor to the business with SPLASH BAR.
 Alternative hypothesis: H1: there is a significant relationship between
interest of vendor to the business with SPLASH BAR.
Are you interested in selling selective cold drinks of Coca-cola(Coke & Sprite) with
SPLASH BAR @ * Do you feel that with SPLASH BAR you will be able to increase
your Business & Profit? Cross tabulation
Count
Do you feel that with SPLASH BAR you will be able
to increase your Business & Profit?
Total
STROGLY
AGREED AGREED NEUTRAL DISAGREE
Are you
interested in
selling selective
cold drinks of
Coca-cola(Coke
& Sprite) with
SPLASH BAR @
Rs.5
STRONGLY
INTRESTED
5 2 1 0 8
INTRESTED 2 3 3 0 8
NEUTRAL 0 0 7 1 8
DISINTRESTD
0 0 0 1 1
Total 7 5 11 2 25
P a g e | 76
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 26.895a
9 .001
Likelihood Ratio 24.333 9 .004
Linear-by-Linear Association 13.813 1 .000
N of Valid Cases 25
Interpretation
Since the value of (p =0.001) is less than (0.05), hence alternate hypothesis is
accepted i.e. there is a significant relationship between Interest of vendor &
Business with Splash Bar, which supports our research objective of potential market
for Splash Bar.
2. Hypothesis
 Null hypothesis: H0: there is no significant relationship between perceptions
about maintenance of SPLASH BAR to the business with SPLASH BAR.
 Alternative hypothesis: H1: there is a significant relationship between
perception about maintenance of SPLASH BAR to the business with
SPLASH BAR.
P a g e | 77
What is your perception about the maintenance & cleaning of SPLASH BAR? * Do you feel that
with SPLASH BAR you will be able to increase your Business & Profit? Cross tabulation
Do you feel that with SPLASH BAR you will be able
to increase your Business & Profit?
Total
STROGLY
AGREED AGREED
NEUTR
AL DISAGREE
What is your
perception about
the maintenance
& cleaning of
SPLASH BAR?
HECTIC &
DIFFICULT
0 1 4 0 5
SIMPLE & EASY 6 4 6 0 16
NOT POSSIBLE
& IRRITATING
1 0 1 2 4
Total 7 5 11 2 25
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 15.383a
6 .017
Likelihood Ratio 14.128 6 .028
Linear-by-Linear Association .012 1 .914
N of Valid Cases 25
Interpretation
Since the value of (p =0.017) is less than (0.05), hence alternate hypothesis is
accepted i.e. there is a significant relationship between Maintenance perception &
Business with Splash Bar, which supports our research objective of potential market
for Splash Bar.
P a g e | 78
4.3 Analysis of Customers Questionnaire
AGE
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
10-20 33 44.0 44.0 44.0
20-30 26 34.7 34.7 78.7
30-40 14 18.7 18.7 97.3
40-above 2 2.7 2.7 100.0
Total 75 100.0 100.0
P a g e | 79
GENDER
Frequency Percent Valid Percent
Cumulative
Percent
1
2
MALE 39 52.0 52.0 52.0
FEMALE 36 48.0 48.0 100.0
Total 75 100.0 100.0
P a g e | 80
LOCALITY
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
AVAS VIKASH 1 25 33.3 33.3 33.3
GUMTI NO. 5 16 21.3 21.3 54.7
NEHRU NAGAR 20 26.7 26.7 81.3
P. ROAD 14 18.7 18.7 100.0
Total 75 100.0 100.0
P a g e | 81
PREFRENCES
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
YES 66 88.0 88.0 88.0
NO 9 12.0 12.0 100.0
Total 75 100.0 100.0
P a g e | 82
BRANDPREFER
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
PEPSI 23 30.7 30.7 30.7
COCA-COLA 48 64.0 64.0 94.7
PARLE 4 5.3 5.3 100.0
Total 75 100.0 100.0
P a g e | 83
DRINKPRIFER
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
6
COLA 10 13.3 13.3 13.3
THUMPS UP 23 30.7 30.7 44.0
MAAZA 17 22.7 22.7 66.7
SPRITE 17 22.7 22.7 89.3
FANTA 7 9.3 9.3 98.7
LIMCA 1 1.3 1.3 100.0
Total 75 100.0 100.0
P a g e | 84
CONSUMENESS
Frequenc
y Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
MULTIPLE TIME IN A
DAY
7 9.3 9.3 9.3
TWICE A DAY 16 21.3 21.3 30.7
ONCE IN A DAY 11 14.7 14.7 45.3
TWICE IN WEEK 29 38.7 38.7 84.0
ONCE IN A WEEK 12 16.0 16.0 100.0
Total 75 100.0 100.0
P a g e | 85
BRANDLOYALITY
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
STRONGLY AGREED 13 17.3 17.3 17.3
AGREED 15 20.0 20.0 37.3
NEUTRAL 32 42.7 42.7 80.0
DISAGREE 12 16.0 16.0 96.0
STRONGLY
DISAGREE
3 4.0 4.0 100.0
Total 75 100.0 100.0
P a g e | 86
NOTAVAILABLETHENPURCHASE
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
STRONGLY
AGREED
15 20.0 20.0 20.0
AGREED 28 37.3 37.3 57.3
NEUTRAL 23 30.7 30.7 88.0
DISAGREED 7 9.3 9.3 97.3
STRONGLY
DISAGREED
2 2.7 2.7 100.0
Total 75 100.0 100.0
P a g e | 87
AWARENESS
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
FULL INFO. 17 22.7 22.7 22.7
PARTIAL
INFO.
33 44.0 44.0 66.7
NO INFO. 23 30.7 30.7 97.3
NEUTRAL 2 2.7 2.7 100.0
Total 75 100.0 100.0
P a g e | 88
QUANTITYSATISFACTION
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
STRONGLY
AGREED
11 14.7 14.7 14.7
AGREED 33 44.0 44.0 58.7
NEUTRAL 22 29.3 29.3 88.0
DISAGREED 2 2.7 2.7 90.7
STRONGLY
DISAGREED
7 9.3 9.3 100.0
Total 75 100.0 100.0
P a g e | 89
FEELABOUTPRICE
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
EXPENSIVE 13 17.3 17.3 17.3
AFFRODABLE 45 60.0 60.0 77.3
CHEAP 13 17.3 17.3 94.7
NEUTRAL 4 5.3 5.3 100.0
Total 75 100.0 100.0
P a g e | 90
POORQUALITY
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
STRONGLY AGREED 6 8.0 8.0 8.0
AGREED 19 25.3 25.3 33.3
NEUTRAL 26 34.7 34.7 68.0
DISAGREED 13 17.3 17.3 85.3
STRONGLY
DISAGREED
11 14.7 14.7 100.0
Total 75 100.0 100.0
P a g e | 91
WHYPREFER
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
CONVIENANT 19 25.3 25.3 25.3
AFFRODABLE 35 46.7 46.7 72.0
CLEANESS 12 16.0 16.0 88.0
AVAILABILITY 7 9.3 9.3 97.3
OTHERS 2 2.7 2.7 100.0
Total 75 100.0 100.0
P a g e | 92
IMPROVEMENT
Frequency Percent
Valid
Percent
Cumulative
Percent
1
2
3
4
5
6
PRICE 14 18.7 18.9 18.9
QUANTITY 20 26.7 27.0 45.9
TAKE AWAY
FACILITY
22 29.3 29.7 75.7
HYZINE 5 6.7 6.8 82.4
FIZZYNESS 14 17.3 17.6 100.0
Total 75 98.7 100.0
System 1.3
75 100.0
P a g e | 93
4.4 HYPOTHESIS TESTING IN CASE OF CUSTOMERS
1. Hypothesis
 Null hypothesis: H0: there is no significant relationship between price of
cold drink and preference for SPLASH BAR.
 Alternative hypothesis: H1: there is a significant relationship between price
of cold drink and preference for SPLASH BAR.
What do you feel about price of the cold drink served by SPLASH BAR? * Please
indicate the reason why will you prefer SPLASH BAR? Cross tabulation
Please indicate the reason why will you prefer
SPLASH BAR?
Total
CONV
IENA
NT
AFFRO
DABLE
CLEAN
ESS
AVAILA
BILITY
OTHE
RS
What do you
feel about price
of the cold drink
served by
SPLASH BAR?
EXPENSIE 0 8 1 0 0 9
AFFROD
BLE
16 23 8 1 1 49
CHEAP
4 6 3 4 0 17
Total 20 37 12 5 1 75
P a g e | 94
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 16.833a
8 .032
Likelihood Ratio 17.347 8 .027
Linear-by-Linear Association 1.450 1 .229
N of Valid Cases 75
Interpretation
Since the value of (p =0.032) is less than (0.05), hence alternate hypothesis is
accepted i.e. there is a significant relationship between Price & Preference of Splash
Bar , which supports our research objective of potential market for Splash Bar.
2. Hypothesis
 Null hypothesis: H0: there is no significant relationship between Choice of
soft drink & Preference of Splash Bar.
 Alternative hypothesis: H1: there is a significant relationship between
Choice of soft drink & Preference of Splash Bar.
P a g e | 95
Do you prefer soft drinks? * Please indicate the reason why will you prefer SPLASH
BAR?
Please indicate the reason why will you prefer
SPLASH BAR?
Total
CONVI
ENANT
AFFROD
ABLE
CLEAN
ESS
AVAILA
BILITY
OTHE
RS
Do you prefer soft
drinks?
YES 16 35 11 4 0 66
NO 4 2 1 1 1 9
Total 20 37 12 5 1 75
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 10.525a
4 .032
Likelihood Ratio 7.574 4 .109
Linear-by-Linear Association .302 1 .583
N of Valid Cases 75
.
Interpretation
Since the value of (p =0.032) is less than (0.05), hence alternate hypothesis is
accepted i.e. there is a significant relationship between Choice of soft drink &
Preference of Splash Bar , which supports our research objective of potential market
for Splash Bar.
P a g e | 96
CHAPTER 5:
RECOMMENDATIONS
& CONCLUSIONS
P a g e | 97
5.1 RECOMMENDATIONS
1. The company should make hindrance free arrangement for its
customers/retailers to make any feedback or suggestions as and when they
feel.
2. The company should focus to bring some more flavors in SPLASH BAR.
3. The company must keep a watch on its primary competitors in market in
order to be able to compete with them.
4. The company should use new attractive system of word of mouth
advertisement for SPLASH BAR to keep alive the general awareness in the
whole market as a whole.
5. The company should be always in a position to receive continuous feedback
and suggestions from its customers/ consumers as well as from the market
and try to solve it without any delay to establish its own good credibility.
6. A strong watch should be kept on distributors and Market Developers so
that the goodwill of the BRAND doesn’t get affected.
7. They should try to increase the quantity of cold drink offered through
SPLASH BAR.
P a g e | 98
5.2 CONCLUSION
Though there were certain limitations in the study that was conducted. The sample
allowed for some conclusions to be drawn on the basis of analysis that was done on
the data collected.
The data has clearly indicated that Coca-Cola products are more popular than the
products of Pepsi mainly because of its TASTE, BRAND NAME,
INNOVATIVENESS and AVAILABILITY, thus it should focus on good taste so
that it can capture the major part of the market. The study also indicated that the
consumers are satisfied with the Coca-Cola products and purchase them without any
specific occasions. This study also shows that there is a huge potential market for
SPLASH BAR introduced by coca-cola if some changes like increased quantity of
cold drink as well as more flavors and more consumer oriented facilities (take away,
fizzyness) are added to the new machine.
In today’s scenario, customer is the king because he has got various choices around
him. If you are not capable of providing him the desired result he will definitely
switch over to the other provider. Therefore to survive in this cutthroat competition,
you need to be the best. Customer is no more loyal in today’s scenario, so you need
to be always on your toes. Hence coca-cola should improve their distribution
channel and training of their market developers.
P a g e | 99
BIBLIOGRAPHY
P a g e | 100
BOOKS:
1. Kotler Philip, “Marketing Management”, New Delhi, Prentice –Hall India,
10th
Edition.
2. Kothari C.R., [1978] “Quantitative Technique” New Delhi, Vikas Publishing
Pvt. Ltd.4th
Edition.
3. Kothari C.R.,[2000] “Research Methodology” New Delhi, Wishwa Prakashan,
2nd
Edition.
4. Gupta S.P., “Statistical Methods” New Delhi, Sultan & Co.
MAGAZINES:
1.
ARTICLES:
1. http://www.professionalacademy.com/blogs-and-advice/marketing-theories---
pestel-analysis
2. http://www.business-standard.com/article/companies/rural-consumers-can-
taste-our-beverages-in-rs-5-cups-coke-zero-in-cities-soon-venkatesh-kini-
114020501257_1.html
P a g e | 101
3. The Coca-Cola Company: (2014). Mission, Vision & Values. Retrieved July
16, 2014 from: http://www.coca-colacompany.com/our-company/mission-
vision-values.
4. Gilhuly, J. (2014, March 1st). Coca-Cola Organizational Complexity.
Retrieved July 16, 2014 from
http://juliegilhuly.wordpress.com/2014/03/01/coca-cola-organizational-
complexity
5. Vicky, N. (2010). The Coca-Cola Company 2010: Organizational Structure of
the Coca-Cola Company. Retrieved July 16, 2014 from
http://www.scribd.com/doc/37483762/Organizational-Structure-of-The-Coca-
Cola-Company
6. The Coca-Cola Company: (2014).As Inclusive As Our Brands: 2009 U.S.
Diversity Stewardship Report. Retrieved from http://assets.coca-
colacompany.com/51/ba/c9ddc22646ca9660ee4d8f309c01/2009_Diversity_R
eport.pdf
P a g e | 102

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Summer internship report

  • 1. PRANVEER SINGH INSTITUTE OF TECHNOLOGY.COE CODE: 348 Affiliated to Dr. A. P. J. AKTU SUMMER TRAINING PROJECT REPORT Submitted in partial fulfillment of Master of Business Administration Session- 2015-2016 “Project Report on analysis of potential market and building business with SPLASH BAR introduced by Coca-Cola Company” Company Guide Submitted By: Mr. Dhiraj Agarwal Ayush Dwivedi Area Sales manager 1434870007 Internal Guide Miss Mansi Yadav Assistant Professor Department of management
  • 2. “Project Report on analysis of potential market of SPLASH BAR introduced by Coca-Cola Company” DECLARATION I hereby declare that this submission is my own work. It contains no material previously published or written by another person, nor has this material to a substantial extent been accepted for the award of any other degree or diploma of the university or other institute of higher learning. Ayush Dwivedi 1434870007
  • 3. “Project Report on analysis of potential market of SPLASH BAR introduced by Coca-Cola Company” ACKNOWLEDGMENT Summer training Project Report is the one of the important part of MBA program, which has helped me to gain a lot of experience about practical application of my theoretical concepts, which will be beneficial in my succeeding career. I express my sincere gratitude to my industry guide Mr. Dhiraj Agarwal, Area sales manager for their guidance, continuous support & cooperation throughout my project without which the present work would not have been possible. I am obliged to staff members of Hindustan Coca-cola Beverage Pvt. Ltd., for the valuable information provided by them in their respective fields. I am grateful for their cooperation during the period of my assignment. With an ineffable sense of gratitude I take this opportunity to express my deep sense of indebtedness and gratitude to Dr. N. K. Singh, Director PSIT.coe and Dr. S. L. Shukla, Director Academics along with Dr. Atul Kumar Agarwal, Professor and Head of Department in Business Administration, for their encouragement, support and guidance in carrying out the project. I am very much thankful to, my Project Guide –Ms. Mansi Yadav, Faculty- Business Administration for their interest, constructive criticism, persistent encouragement and untiring Guidance throughout the development of the project. It has been my great privilege to work under his/her inspiring guidance. I am also thankful to my Parents and my friends for their indelible Co-operation for achieving the Goal of this study.
  • 4. “Project Report on analysis of potential market of SPLASH BAR introduced by Coca-Cola Company” EXECUTIVE SUMMARY This report has been prepared with a specific purpose in mind. The study takes us through the present state of affairs of the SPLASH BAR and Coca-Cola Company. The report contains a brief introduction of Coca Cola Company and a detailed view of the tasks, which have been undertaken to analyze the potential market of SPLASH BAR i.e PESTLE and SWOT analysis of Coca-Cola Company and in order to identify areas of potential growth for Coca-Cola. The main objective of this project report is to analyze and study in efficient way the Potential market for building Business with SPLASH BAR. The study also aims to perform Market Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola. Apart from these objectives this study is also conducted to understand the Customer preferences towards SPLASH BAR.
  • 5. P a g e | 1 PART-I CHAPTER 1 INTRODUCTION
  • 6. P a g e | 2 1.1 INDUSTRY PROFILE A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA In today`s world FMCG companies are growing at a great pace and has established a remarkable position in this competitive market. Fast Moving Consumer Goods (FMCG) are popularly named as Consumer Packaged Goods (CPG). Items in this category include all consumables (other than groceries/pulses) that people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily or frequent consumption and have a high return. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Competition in the FMCG sector is very high as well resulting in high pressure on margins. FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with presence of local players in rural areas and state brands. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capital consumption as well as low penetration level, but the potential for growth is huge. The Indian economy is surging ahead by
  • 7. P a g e | 3 leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the Indian FMCG sector. FMCG is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that the FMCG sector will rise to Rs.92, 100 crores in 2020. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. According to CRISIL anticipation, FMCG sector could touch around INR 140,000 Crores by 2015. Characteristics of FMCG Sector: This industry is characterized by a strong focus on the four Ps – price points, promotions to push the otherwise undifferentiated products, places to sell them, and the product, which has to be sold. This industry is high volume, low value driven in most categories. It is also brand driven, rather than product driven. The capital investment required in plant and machinery is not high and any reasonably sized industrial house can enter the industry in manufacturing. It has been one of the first to use the concept of outsourcing‘ since the core competency of a true blue FMCG company lies not in the manufacture of its products(which in most cases is simple and known), but in its ability to brand, differentiate and distribute widely for sale in
  • 8. P a g e | 4 the country. Manufacturing is not expensive, but marketing of FMCG products is. In a vast and complex country like India, plagued by poor infrastructure and a mass of laws, distribution networks of dealers, wholesalers and agents are often the key source of success. Indian Competitiveness & Comparison with the world markets The following factors make India a competitive player in FMCG sector: Availability of raw materials - Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison - Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets. Presence across value chain - Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc. Likewise RSPL provides Namaste India milk & milk products.
  • 9. P a g e | 5 Countries covered: India The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. This industry primarily includes the production, distribution and marketing of consumer packaged goods, that is those categories of products which are consumed at regular intervals. The sector is growing at rapid pace with well-
  • 10. P a g e | 6 established distribution networks and intense competition between the organized and unorganized segments. It has a strong and competitive MNC presence across the entire value chain. The FMCG’s promising market includes middle class and the rural segments of the Indian population, and give brand makers the opportunity to convert them to branded products. It includes food and beverage, personal care, pharmaceuticals, plastic goods, paper and stationery and household products etc. India, Asia’s third largest economy, saw urban consumers spend less in calendar year 2015 due to high inflation, muted salary hikes, and slowing economic growth that affected both real wages and sentiment. During 2012, the overall slowdown in the economy has begun to affect the FMCG sector with companies posting deceleration in volume growth in the recent quarterly results. Discretionary spending has been hit severely due to the ongoing slowdown. The prevailing high inflation level is also a cause of concern for the sector. The trends seen in 2012 are likely to accelerate in 2013. Growth will come from rural dwellers that are expected to see a rise in disposable incomes due to the direct cash transfer scheme, while urban consumers will continue to be affected by the macroeconomic environment. IS Advisors takes you through the impact analysis of Union Budget 2013-14 on the Industry in this report. The report provides useful and comprehensive information about the industry expectations from the budget, proposed measures in the budget and their impact on industry and its players.
  • 11. P a g e | 7  Industry at a glance  List of key Budget expectations  Analysis of the various budget provisions affecting the industry  Summarize impact on key players of the industry REASONS TO BUY To understand the impact of key government policies on the overall industry and key playersFast Moving Consumers Goods (FMCG) companies are often considered as a defensive bet because of India’s consumption-driven growth story. This helps the companies to grow at a decent pace, despite the business cycle they are in. However, these companies have recently faced some issues in terms of volume growth as a result of lower disposable income from the consumers’ end. According to media reports, even the rural sales are declining, hurting the companies’ topline. With the forthcoming Budget, FMCG companies have some expectations from the Finance Minister (FM), which could revive the consumer sentiments helping the sector to perform well going ahead. However, before going through this year’s wish list, let’s take look at the FMCG-specific announcements made in last year‘s budget. Following are some of the key Budget announcements made for FY13 with respect to the FMCG sector:  The excise duty was increased to 12 per cent (FY13) from the earlier 10 per cent (FY12). The industry players had not expected this hike as it created inflationary pressures.
  • 12. P a g e | 8  A clear guidance was not provided about the Goods and Services tax (GST) implementations.  Excise duties were also increased in case of tobacco products against the expectations.  The target for agriculture credit limit was raised by Rs 1,00,000crore to Rs 5,75,000 crore in 2013-14 on a YoY basis.  Further, the FM retained the interest subvention scheme for providing short- term crop loan to farmers at a 7 per cent interest rate. An additional subvention of 3 per cent was available to prompt paying farmers.  The exemption limit for general tax payers was enhanced from Rs 1.8 lakh to Rs 2 lakh, giving a tax relief of Rs 2,000. Further, the upper limit of 20 per cent tax slab was raised from Rs 8 lakh to Rs 10 lakh. The additional income generated from this helped the individuals to spend more, thus benefiting the sector Following are the key Budget expectations from the FMCG space for this year's Budget (2014-15):  A clear roadmap for Goods and Services Tax (GST) from the FM. various media reports suggest that GST would be implemented from the next year (April 2014), but the industry expects a positive development in the area. This is because the GST will bring down the distribution costs of the FMCG companies, which are currently in the range of 2 to 7 per cent of their turnover.
  • 13. P a g e | 9  No hike in excise duty. If hiked, it would certainly be passed on to the consumers, which will further fuel inflation. Also, hike in prices may reduce consumer spending, hammering the overall growth of the companies.  An increased allocation of funds to rural infrastructure development and various rural employment related schemes like MGNREGA which will increase the rural spend.  Higher exemption limit for tax payers, which would leave consumers with more cash and thus be a positive sign for the consumer space.  The Indian tea industry should be given an interest subsidy at 5% on the applicable rate of interest on the funds specifically borrowed for the activities of replanting.  The existing ban of FDI in manufacturing of cigars, cigarettes and other tobacco related products should be further strengthened in order to protect the domestic manufacturers, employment and revenue interests. Overall, we believe that the Budget 2013 would be a positive one for the FMCG space. However, the risk of excise duty hike is hovering over the sector. Such a hike would improve the financials of the central government which is more focused on curbing its twin deficit. On the other hand, a hike would fuel inflation which is still way above the comfort level of thecommon man.
  • 14. P a g e | 10 1.2 INTRODUCTION TO COCA-COLA Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca- Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca- Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.
  • 15. P a g e | 11 The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.
  • 16. P a g e | 12 CHAPTER 2: COMPANY PROFILE
  • 17. P a g e | 13 2. COMPANY PROFILE 2.1 Vision, Mission & Quality Policy Mission: Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.  To refresh the world..  To inspire moments of optimism and happiness...  To create value and make a difference. Vision: Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.  People: Be a great place to work where people are inspired to be the best they can be.  Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.  Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.  Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.  Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.
  • 18. P a g e | 14  Productivity: Be a highly effective, lean and fast-moving organization. Winning Cultures: Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality. Values: Our values serve as a compass for our actions and describe how we behave in the world.  Leadership: The courage to shape a better future.  Collaboration: Leverage collective genius.  Integrity: Be real.  Accountability: If it is to be, it's up to me.  Passion: Committed in heart and mind.  Diversity: As inclusive as our brands.  Quality: What we do, we do well. Focus on the Market:  Focus on needs of our consumers, customers and franchise partners.  Get out into the market and listen, observe and learn.  Possess a world view.  Focus on execution in the marketplace every day.  Be insatiably curious.
  • 19. P a g e | 15 Work Smart:  Act with urgency.  Remain responsive to change.  Have the courage to change course when needed.  Remain constructively discontent.  Work efficiently. Act like Owners:  “Be accountable for our actions and inactions  Steward system assets and focus on building value  Reward our people for taking risks and finding better ways to solve problems  Learn from our outcomes -- what worked and what didn’t” (The Coca- Cola Company, 2014). Be The Brand:  Inspire creativity, passion, optimism and fun (The Coca-Cola Company, 2014).
  • 20. P a g e | 16 2.2 Organizational Design: Before the nineties the Coca-Cola company was having a centralize system of control, but after sometime they realized that if they had to meet the demands of the customers they should adopt a decentralized system in which the authority of decision making is distributed between different managers so that every sector can be managed effectively. This system was implemented in the nineties by the company’s board of directors (Gilhuly, 2014). Now the organization is having two groups who are responsible for operating:  Bottling Investments  Corporate Operating groups are also divided by different regions i.e. Africa, Asia, Middle East, European Union, Latin America, North America etc. All the divisions are further divided into geographical regions. This allows the local market to involve in decision making, due to this the organization responds quick to the changing demands of the market, this helps the upper level managers to concentrate on the long term planning of the organization. The company’s corporate division is filled with different departments which are as follow:  Finance Department  Human Resource Department  Marketing Department  Innovation Department
  • 21. P a g e | 17  Planning Department Some of the above mentioned departments are in the lower levels in the regions of the company, the decision making job is most of the times done by the top level management. Sharing the latest information with each other is very fast by all the departments and by such activities the organization appears to be doing their job effectively by balancing standardization and mutual adjustment. The organization has made the Code of conduct which is a guidebook for the employees on how they should act? The disciplinary actions are the main subjects of the code of conduct (The Coca-Cola Company, 2014). The larger role in the organization’s success is played by the mutual adjustments due to the changes brought upon by the CEO and Chairman of the company 2004, Nevile Isdell. The turnover has been reduced because the employees feel more engaged in the work. The organization’s growth rates increased and the return of equity for stockholders went from a negative return to a 20 percent return. The changes brought by Isdell proved to be good for the organization and the employees were also happy with the change which is reflected by the end results of the company (Gilhuly, 2014). Such balances are indispensible because due to them the employees feel some flexibility and it also gives some time to the organization to forecast their future plans about the organization. The structure of the Coca-Cola Company is made up of both “Mechanistic & Organic” models. The Coca-Cola Beverage Company mainly focuses on the responsiveness (Gilhuly, 2014). All the complex integrating mechanisms are the characteristics of the organic
  • 22. P a g e | 18 structure. The company uses survey and interviews for the flow of information from bottom to up, latterly the information is exchanged over the intranet. The surveys have made the Coca-Cola Company to believe of simplification and standardization. Centralization and standardization are associated with mechanistic structure (Gilhuly, 2014). The mix of the two structures looks to be ideal for the organization. When organization wants to appeal to a huge independent market, on one hand it requires to be flexible and on the other hand to be more efficient in production. Coordination is easy for the company when it uses complex integrating mechanisms. Due to centralization the organization goals and organizational choices are kept align. Now that the information in the company is flowing very easily, the top level of management will receive the information much faster due to the organization’s flexibility and responsiveness. Recently there was a shift in the organization to make it more decentralized and organic which corresponded with quite uncertainty with organization. 2.3 Organization Structure: Coca-Cola is “Tall” in terms of organizational complexity. Coca-Cola is controlled through a vertical hierarchy, with decision-making authority residing with the company’s upper management. Daily and routine decisions are made by the line managers at the middle level (Narayan, 2010). Coca-Cola has more than 700,000 system employees, including their bottling partners. The company’s operations reach over 200 countries worldwide, with six geographic operating segments. Coca-Cola’s head office is responsible for providing
  • 23. P a g e | 19 the company with an overall direction and support to the regional structure. The company’s Executive Committee makes key strategic decisions for the company. The Chair of the Executive Committee acts as a figurehead for the company and chairs the board meetings. He is also the CEO and is the senior decision maker (Narayan, 2010). Each division of the company has a marketing manager, public affairs director, finance director, etc. When one of these divisions is planning to do something, an advertising campaign for example, the division has to communicate with their superiors to get approval. Since the company’s hierarchy is so tall, communication has to travel back to corporate headquarters in the U.S, where the Executive Committee has the final decision making power for activities the divisions have proposed. Below is an organizational chart of the company (Gilhuly, 2014).
  • 24. P a g e | 20 2.4 Functional Departments: On the basis of functional approach the Coca-Cola Company is divided into different departments. Grouping of employees is done on the basis of their common skills and work activities. Such kind of approach helps the company in solving their problems and it also make the less the need of training the employees specially. The general manger is head of all the departments all the department have to report to the general manager in the Coca-Cola Company. There are five major departments in the company which are as follow:  Production Department  Industrial Relations Department  Sales and Marketing Department  Human Capital Department  Finance Department Production Department: This department looks around all the production of the company. All plants in the country are in under its control. Industrial Relation Department: This department deals with the problems of the employees. The department listen the problems of the employees and send them to the high authorities for settling them up and stop them from becoming a hurdle in the work progress of the company. Sales and Marketing department: This department makes sure that the product is easily available in the market for the customers to buy and deals with the issues of advertisement, promotion, and distribution of the product.
  • 25. P a g e | 21 Human Capital Department: This department takes care of the efficient workers of the company, they select some efficient workers of in the company recommend their names for promotion in job so that the workers remain happy and don’t leave the company. Management level employees are dealt by the department. Finance Department: The department is concerned with cost and price of the products produced by the company. It also tackles with import related issues of the company. Finance department is assisted by the sales and marketing department in making invoices and payroll entries(The Coca-Cola Company, 2014).
  • 26. P a g e | 22 Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close down its operation by a socialist government in the drive for self sufficiency. After 16 years of absence, coca cola returned to India and witnessed a different culture and economic platform. During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along with, they also formulated a lemon flavoured drink, LIMCA, and mango flavored, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India. Pepsi put more focus on the youth of the country in their advertisements but coca cola tried influencing Indians with the ‘American’ way of life, which turned out to be a mistake. Coca-Cola invested heavily in India for the first five years, which got them credit of being one of the biggest investor in the country; however, their sales figures were not so impressive. Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover, hence leading to profit. They launched an extensive market research in India. They ascertained that in India 3 As must be applied; Affordability, Availability and Acceptability.
  • 27. P a g e | 23 Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached to a conclusion that competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5. Further, they had different advertising campaigns for different regions of the country. In the southern part, their strategy was to make Bollywood or Tamil stars to endorse their products. In various regions they tried portraying coca cola products with different regional food products. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they featured the same quote with different regional entities. Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a competitive pricing policy, they have regained their throne. With virtually all the goods and services required to produce and market Coca- Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution System. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufactures a range of products for the Company. On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the Country’s remotest areas.
  • 28. P a g e | 24 2.6 PRODUCTS OF COCA-COLA INDIA COCA-COLA: In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in remote and inaccessible parts of the nation. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s favorite soft drink brand. GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1000ml 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml 330 ml VARIOUS SIZES
  • 29. P a g e | 25 LIMCA: Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of “Freshness”. Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades. GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1000ml 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml 330 ml VARIOUS SIZES THUMS UP: Thums up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.
  • 30. P a g e | 26 GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1000ml 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml 330 ml VARIOUS SIZES SPRITE: Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen icon. RGB PET CAN FOUNTAIN 200ml, 300ml 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml 330 ml VARIOUS SIZES FANTA: Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends.
  • 31. P a g e | 27 GLASS PET CAN FOUNTAIN 200ml, 300ml 500ml, 1.5L, 2L, 2.25L, 500ml, 100ml 330 ml VARIOUS SIZES MINUTE MAID PULPY ORANGE: The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation developed orange juice powder. The company developed a process that eliminated 80% of the water in the orange juice, forming a frozen concentrate that when reconstitute created orange juice. They branded it Minute Maid a name connoting the convenience and the ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. The launch of Minute Maid in India (started with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category. Available in 3 PET pack sizes i.e. 400ml, 1 liter, 1.25 liters. MAAZA: Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mango lover’s first choice.
  • 32. P a g e | 28 RGB PET POCKET MAAZA 200ml, 250ml 250ml, 600ml, 1.2L 200ml KINLEY: The importance of water can never be understated, Particularly in a nation such as India where water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company. Available in PET 500ml and 1000ml.
  • 33. P a g e | 29 2.7 SWOT ANALYSIS OF COCA-COLA COMPANY Fig -- SWOT ANALYSIS OF COCA-COLA STRENGTHS 1. BRAND RECOGNITION AND REPUTATION WORLDWIDE 2. STRONG MARKETING AND ADVERTISEMENT 3. WELL KNOWN SPONSORS ON IN THE WORLD 4. STRONG DISTRIBUTION NETWORK WEAKNESS 1. ABSENCE IN HEALTH BEVERAGES AND FOCUSING 2. COMPETITION WITH PEPSI 3. NEGATIVE PUBLICITY OPPORTUNITIES 1. INCREASING SALES OPPORTUNITIES ON DEVELOPING NATIONS 2. BOTTLED WATER CONSUMPTION GROWTH 3. SUPPLY CHAIN IMPROVEMENTS 4. INCREASING DEMAND FOR HEALTHY FOOD AND BEVERAGES THREATS 1. INTENSE COMPETITION 2. CHANGING HEALTH CONSIOUSNESS OF THE SOCIETY 3. WATER SCARCITY SWOT ANALYSIS
  • 34. P a g e | 30 S.W.O.T. ANALYSIS: SWOT stands for strength, weakness, opportunities and threats. SWOT analysis is an overall evaluation of a company current state by looking at its strength, weakness, opportunities and threats. SWOT analysis is considered to be a source of information for strategic planning which aims to develop full awareness of the company situation that will help in strategic planning and decision making of the company.  Strengths Strengths are features of the business that provide an advantage over others in the industry. It includes organizational capabilities such as processing capabilities, financial resources, Products and services and customer locality. Coca-Cola company strength include the following 1. Brand Recognition & Reputation Worldwide Coca Cola is an extremely recognizable company. Its products have Global reach with presence in over 200 countries. Popularity is one of its superior strengths that are incomparable with other companies. Coca Cola is known very well worldwide. It's branding is easily recognized. Their products are well known to major parts of the world and customers accept the products.
  • 35. P a g e | 31 Coca-Cola is the leading player in the global beverage industry that is found everywhere in the world. 2. Extensive Diversified Rang of Products Coca-Cola sells and manufactures many different products including carbonated drinks and energy drinks. The company produces several products that are known worldwide and some products that are produced on specific countries, for example Ambasa is a Soft drink sold in Japan and Korea, Apollinaris is a German naturally sparkling mineral water owned by Coca-Cola, Bibo is a Fruit flavored juice produced in Turkey, South Africa, Mozambique and Canada. 3. Strong Marketing & Advertisement Coca-Cola has got the best incredible marketing teams that have excellent marketing and advertisement techniques. They dedicate themselves on each and everything within their capability and power in order to sell their products. The major technique they use in their advertisement and marketing techniques is by associating celebrity and brand amassadors in their advertisement, For example now there is coke studio which basically advertise cocacola using celebrities in form of songs, In Tanzania there is Lady Jay dee, Diamond and others in different countries.
  • 36. P a g e | 32 4. Strong Distribution Network Coca-Cola is considered to be the world largest market share that holds the largest beverage market share in the world which is about 40%. Its major competitor Pepsi covers 31% and the remaining shares are covered by other companies. 5. Customer Loyalty Another strength which is very important to Coca Cola is customer loyalty. Eighty percent of their profit comes from 20% of their loyal customers. Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find bottles and cases of a product such as coke in a house. It seems that some people would drink coke religiously like some people would drink water and milk. This is an improbable feat. Customers will continually purchase these products, and will probably do so for a very long time. If two parents were good Coca Cola drinkers, this will be passed down do their children as they grow loyal to the company. With Coca Cola’s ability to sell their product all over the world, customers will continue to buy what they know and what they like which are the Coca Cola products. 6. Well known Sponsors in the World Coca-Cola is well known sponsors in the world. They have Long association with international sports events, sponsorships etc Coca-Cola have sponsored different Olympics games in different countries The Coca-Cola Company is one of the longest-standing corporate partners of FIFA; Coca-Cola is the official sponsor of Fifa World cup
  • 37. P a g e | 33 7. Strong Distribution Network Coca-Cola has Strong and efficient supply chain network, ensuring that all the products are available even on the most places in the world including Africa, Asia, America and Europe markets. It has the largest distribution network because of the demand in the market for its products. On the other hand, due to this successful distribution network, Coca cola has been able to command such a high market presence.  Weakness These are characteristics that place a company at a disadvantage relative to others; they reduce the capability of the firm to attain its goals and future growth. Weakness include poor technologies, Poor employee performance and limited financial resources.. Coca cola consist of the following weaknesses 1. Absence in Health Beverages & Focusing Coca-Cola does not produce any health beverage; Most of their products are not good to health and results to obesity since they contain large amount of calories. Societies are now becoming aware of obesity harmful effects, the business environment is changing and people are taking measures to ensure that they are not obese, this means the consumption of beverages in developed countries might go down as people will prefer a healthy alternative, hence lost of customers to coca-cola company if they don’t produce health beverages.
  • 38. P a g e | 34 2. Competition with Pepsi Pepsi is usually in second to coke in sales. It out sales Coca-cola in some markets areas, for example in Oman and Saudi Arabia they prefer Pepsi rather than Coca- Cola. Also in India and Pakistan they prefer Pepsi, Pepsi seems to sponsor most of the cricket teams in India and Pakistan 3. Negative Publicity The presences of traces of pesticides in the cola beverages have caused damage to the brand image. People have blamed Coca cola for mixing pesticides in the water to clear contaminants Negative publicity occur in India during September 2007 where Coca-Cola was accused of selling products with pest side residue. This reduced the Coca-Cola market in India as well as some places in the world. Also on water management issues several groups have raised lawsuits in the name of Coca cola because of their vast consumption of water even in water scarce regions  Opportunities Opportunities refers to chances which arise that can make a company earn greater profit in its business environment They occur when an organization can take benefit of the current situation in its environment to plan and execute strategies that enable it to become more profitable. The following are the opportunities of the Coca-Cola company. 1. Increasing Sales Opportunities on Developing Nations Developing nations such as India and Tanzania do have hot summer. The consumption of cold drinks in these places during hot summer is almost doubled.
  • 39. P a g e | 35 Thus the higher consumption in developing business environment can be a good opportunity for Coca cola to increase its revenue 2. Bottled Water Consumption Growth With hygiene becoming a major factor in the consumption of water, packaged drinking water has found its way into people’s mind. Coca cola has a presence in the packed drinking water segment though Kinley. Although Kinleys expansion is slow as of now, Kinley has a huge potential of expansion. Thus Coca cola as a company should focus on the expansion of Kinley as a brand and take it up to Bisleri ‘s level of trust 3. Supply Chain Improvements Supply chain can be a major cost sink hole with the transportation costs always rising. Coca cola’s complete business is based on transportation and distribution. There will always be possible improvements in this area. Thus Coca cola should keep strict watch on its Supply chain and keep improving to bring the cost down 4. Increasing Demand for Healthy Food & Beverages The marketing of healthy beverages and food is widely seen and it is still growing in demand. The company can try to create and provide more healthy drinks in the market since people in the world are paying more attention to their health at present. Healthy drink markets will have great potential in the future. If Coca-Cola can produce healthy beverages and food in the future, it will obviously boost its revenue
  • 40. P a g e | 36  Threats Threats are elements in the environment that can cause trouble to the business. Threats include competitors, changing customer needs, Changes in government regulations and Changes in economic of the country. Coca cola does face the following threats. 1. Intense Competition Coca-Cola is getting intensive competition from different manufactures both locally and internationally. Pepsi is the leading competitor of Coca-Cola; Hence Coca-Cola should have innovative ideas in order to make its past customers to stay, grab more future customers and to continue leading the beverage market industry worldwide. For example In Tanzania Coca-Cola faces local competition from Bakhresa and Mohd Enterprises Company, 2. Changing Health Consciousness of the Society There are changes in consumer preference in the society, Societies focus on drinking health beverages. People are changing their altitudes and keep their mind on consuming health drinks in order to avoid diseases such as obesity. Today, there is a trend of consuming healthy drink and many existing drink companies have tried to invent a great variety of innovative drinks. If the Coca Cola Company only insists on providing tasty soft drinks and little healthy drinks, its sales must be affected.
  • 41. P a g e | 37 3. Water Scarcity Water is the major threat to Coca cola. The threat here is that water scarcity is on the rise, with the climate changing, and regions of various countries facing scarcity of water, sooner or later someone might raise fingers on beverage companies. If water is limited or rationed, Coca cola can experience a major downfall in their revenue and capacity of distribution. All in all this a SWOT analysis of the Coca-Cola that identifies some of the strength, weakness opportunities and threats of the company
  • 42. P a g e | 38 2.8 PESTEL ANALYSIS for COCA-COLA A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTEL stands for:  P – Political  E – Economic  S – Social  T – Technological  E – Environmental  L – Legal  Political Analysis Non-alcoholic beverages fall within the food category under the FDA. The government plays a role within the operation of manufacturing these products in terms of regulations. There are potential fines set by the government on companies if they do not meet a standard of laws. The following are some of the factors that could cause Coca-Cola company's actual results to differ materially from the expected results described in their underlying company's forward statement: Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
  • 43. P a g e | 39 Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in international markets, including civil unrest , government changes and restrictions on the ability to transfer capital across borders Political structure and legal considerations also have impinged on Coco-Cola Company’s strategies. Governments of some Arab nations boycotted Coca-Cola’s products due to a political dispute and discontented with the company for maintaining distributors in Israel.  Economical Analysis Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca- Cola to exploit the economies of scale that was gained by its global marketing and at the same time making its products appeal to local taste, which these have earned the company an enormous profits quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the company has benefited from the various cultural insights and perspectives of the societies in which business is done. No doubt of the remarkable experience it has, it is still very committed to local markets, to paying attention to what people from different cultures and backgrounds like to drink, and where and how they like to drink it, to remain competitive and to develop more new drinks to satisfy its markets.
  • 44. P a g e | 40 Now, the estimated brand equity of Coca-Cola is $84billion, market share of more than 50 percent in beverage industry globally and about 70 percent of its income comes from countries outside United States. Every 10 seconds, 126,000 people in the whole world, choose to reach out for one of The Coca-Cola Company brands, and it is the company’s mission to make that choice exciting and satisfying, every single time. Previously the U.S. economy was strong and nearly every part of it was growing and doing well. However, things changed. Before the attacks on September 11, 2001, the United States was starting to see the economy recover slightly and it is only just recently that they achieved the economic levels. Consumers are now resuming their normal habits, going to the malls, car shopping, and eating out at restaurants. However, many are still handling their money cautiously. They believe that with lower inflation still to come, consumers will recover their confidence over the next year. As researching for new products would cost less the Coca-Cola Company will sell its products for less and the people will spend as they would get cheap products from Coca-Cola  Social Analysis Foreign environment factors have influenced the Coca-Cola’s strategies in international marketing. Culture has a tremendous effect on people’s preferences and perception. Language is one of the aspects of culture that marketers must take care of, in term of translating product name, slogans and promotional messages so as not to convey the wrong meaning. Coca-Cola did not look much into this aspect when
  • 45. P a g e | 41 entering into the markets of countries like China and Taiwan as the literal translation of Coca-Cola in Chinese characters mean, “bite the wax tadpole” Changes are necessary in international marketing for consumer’s products, as it is important that the products suit one’s taste, preferences and fulfill one’s needs. Coca- Cola has continued changing, improving and developing new drinks to appeal to local tastes. After discovering that Coke did not appeal as much to Japanese consumers, Coca- Cola developed over 30 new drinks for the Japanese market, which inclusive of Asian tea, English tea, coffee and fermented-milk drink In China, Coca-Cola has also begun the similar strategy of introducing beverages developed for the taste buds of local market. It launched a fruit juice drink called Tian YuDi (Heaven and Earth) specifically for the Chinese market with planning of introducing the market with a Chinese iced tea and soy milk drink. Many U.S. citizens are practicing healthier lifestyles. This has affected the non- alcoholic beverage industry in that many are switching to bottled water and diet colas instead of beer and other alcoholic beverages. Also, time management has increased and is at approximately 43% of all households. The need for bottled water and other more convenient and healthy products are in important in the average day-to-day life Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Since many
  • 46. P a g e | 42 are reaching an older age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage by increasing the demand overall and in the healthier beverages.  Technological Analysis Some factors that cause company's actual results to differ materially from the expected Results are as follows: The effectiveness of company's advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago Coca-Cola has six factories in Britain which use the most state-of the-art drinks technology to ensure top product quality and speedy delivery. Europe's largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield
  • 47. P a g e | 43 factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun  Legal Analysis Legal aspect focuses on the effect of the national and world legislation. The Coca Cola Company receives all the rights applicable in the nature of their business and every inventions and product developments are always going into the patented process  Environmental Analysis Environmental analysis examines the local, national and world environmental issues. According to the data of the Coca Cola Company, all of the facilities are strictly monitored according to the environmental laws imposed by the government.
  • 48. P a g e | 44 2.9 The Coca-Cola Company versus PepsiCo: A battle of giants  Dominant players The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP), are dominant players in the soft drinks market. Both companies own a strong portfolio of liquid refreshments and several brands that generate more than $1 billion in revenues. The two soft drink behemoths have extensive distribution networks and geographic presence in over 200 countries.
  • 49. P a g e | 45  Valuation We use the price-to-earnings (or PE) ratio to value mature companies like Coca-Cola and PepsiCo that are similar from a shareholder’s standpoint. Between late 2010 and 2012, Coca-Cola was trading at a higher PE ratio. But since early 2013, PepsiCo is trading at similar PE multiples as Coca-Cola. PepsiCo’s revenues increased by 1.4% in 2013 and its diluted earnings per share (or EPS) increased by 10.2%. However, Coca-Cola’s revenues declined by 2.4% and its diluted EPS declined by 3.6% in 2013.  PepsiCo is more diversified Unlike Coca-Cola, which focuses only on beverages, PepsiCo has a strong presence in the snack food category. This diversified model helps PepsiCo fare better through the current challenging times, when soda demand is continually declining. In 2013, PepsiCo’s food business accounted for 52% of its $66.4 billion revenues and includes well-established brands like Quaker, Lays, and Cheetos. Snacks and beverages are complementary food categories, and PepsiCo benefits from this combination.  Coke’s dominance According to Beverage Digest, in 2013, Coca-Cola held a 34.2% share of the liquid refreshment beverages (or LRB) market, which includes carbonated soft drinks (or CSD), bottled water, and non-carbonates like sports drinks, ready-to-drink teas, and juice drinks. PepsiCo held 25.8% of the LRB market.
  • 50. P a g e | 46 Coca-Cola is the undisputed leader in the CSD market, with a share of 42.4% in 2013. It’s ahead of PepsiCo, which had a 27.7% market share. In 2013, Coca-Cola’s CSD volume was down by 2.2%, while PepsiCo declined at twice that rate, 4.4%. Dr Pepper Snapple Group (DPS) held the third-largest US CSD market share at 16.9%. Coca-Cola’s leading brands, Coca-Cola (or Coke) and Diet Coke, led the CSD market with 17.4% and 9.0% market shares, respectively, in 2013. PepsiCo’s key beverage brands, Pepsi and Mountain Dew, trail Coca-Cola’s brands with a market share of 8.9% and 6.9%, respectively.
  • 51. P a g e | 47 2.10 SPLASH BAR: A Growth Engine Let’s see how Splash Bar works “Rural consumers can taste our beverages in Rs 5 cups; Coke Zero in cities soon”: Venkatesh Kini Interview with President, India and South West Asia, Coca-Cola Venkatesh Kini is no stranger to India. After all, it’s the country where he oversaw the company’s earlier marketing foray. Just a few months after he took over as President, India and South West Asia, Coca-Cola, he is focusing on rural markets and looking at some big launches for the year. In an interview with Surajeet Das Gupta & Sounak Mitra, Kini talks about his experiments to make consumers taste Coke for a mere Rs 5 as well as the launch of a string of zero- and low-calorie products for the health-conscious. 1). The next big challenge for you is to penetrate the rural markets. Will you address this by introducing differentiated products from what you sell in urban
  • 52. P a g e | 48 markets and how will you break the price barrier before your products? What are the distribution challenges? During the past two-three years, rural contribution has been growing faster than that of the urban markets because of an improvement in infrastructure, which has made delivery easier, and an increase in prices of farm output leading to higher incomes. First, the rural consumers don’t look for different products or brands. They want the same thing that you are serving to the urban consumers. However, we have to find ways to serve them cost-effectively. 2). So what are you doing to ensure affordable prices? We are experimenting with new models. One of them we are trying is the Splash Bar. This was pioneered by Hindustan Coca-Cola. It has developed a piece of equipment — a dispenser that does not require expensive devices. A two-litre bottle can be placed, through which we can serve in smaller cups of 100-150 ml without compromising the quality and chilling of beverages. These can be put in small retail outlets. We have tested this in Gujarat. Then we have ‘Happiness on the go’. An open truck with a fountain machine will offer 100-150 ml beverages in small cups at Rs 5 and 200-300 ml at Rs 8-10, depending on the location. We have tested this in three states, including Gujarat and Karnataka, and will scale it up. This is a good way to offer consumers the first taste of Coca-Cola, Sprite or Thums Up at Rs 5. 3). What is your target from the rural market in terms of sales? Today, rural markets account for one-third of our total volume. Going by the urbanization trends, at one point in time rural contribution will go up to 40-45 per cent
  • 53. P a g e | 49 of our total volume as it is growing faster than the urban. After all, per capita consumption there is about six times lower than in urban areas. Splash Bar Designs:- Weight (Splash Bar) 34 Kg Weight (whole unit – with cabinet) 102 Kg Power Input 178W Power Consumption 2.5 units per day Dimensions in mm (H * W * D) 1930 x 700 x 590 Cost Rs. 42,000/- Margin Structure from 1st January 2015:- MRP per bottle - 2.25 L 80 Cups per bottle 22 Cups per Case 198 Cost of Beverage per Case 654.50 Cost of Cups per Case 137.50 Total Cost 792.00 Selling Price per Serve 5 Buying Price per serve(Cup price) 4 Selling Price per Case 990
  • 54. P a g e | 50 Buying Price per Case( Cup price) 792 Percentage Margin 25% Working of Splash Bar:- Features of Cabinet:-
  • 55. P a g e | 51 Hygiene & Maintenance:- Splash Bar for Future:- Splash Bar in Cabinet - mandatory . Daily change of nozzle. Sanitation by JD solution. Operations training with certification given to retailers. Complains pertaining to SB & cabinet will be resolved within 2 to 3 days. Drives transactions and recruits new consumer Helps maintain Price Point Higher Margins for Customers Entry in outlets where RGB isn’t sold First Movers Advantage
  • 56. P a g e | 52 Key Success Parameters:- Parameters of Success Identification of Right Outlet Proper Installation Activation Daily Cleaning/ Sanitization Sales Tracking
  • 57. P a g e | 53 PART-II CHAPTER 3: STUDY OF THE SELECTED RESEARCH PROBLEM
  • 58. P a g e | 54 3.1 OBJECTIVE OF THE STUDY 1. The main objective of the project is to find out potential market of SPLASH BAR introduced by coca-cola. 2. To conduct environmental analysis (i.e. PESTLE and SWOT) of coca-cola. This would help us identify areas of potential growth. 3. To study the Consumer behaviour behind the purchase of Coca-Cola products. 4. To understand the Distribution Mechanism of Coca-Cola products. 5. To analyse the Vendor behaviour behind the purchase of Coca-Cola products.
  • 59. P a g e | 55 3.2 SCOPE OF THE STUDY This study basically tries to find out the potential market of SPLASH BAR introduced by Coca-cola. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in 1. GUMTI NO. 5, 2. 80 FEET ROAD, 3. AWAS VIKAS NO. 1 and 4. NEHRU NAGAR.
  • 60. P a g e | 56 3.3 LIMITATIONS 1) Limited study area: The study was limited to four areas of Kanpur city i.e. GUMTI NO. 5, 80 FEET ROAD, AWAS VIKAS NO. 1 and NEHRU NAGAR. 2) Non representative sample: In this research project a sample survey was conducted. A sample of 100 respondents was selected. So such sample size cannot be said to be the true representative of the universe 3) Human element: The human factor in participation of research is one of influencing limitation factor. 4) Shortage of time: The time period of study was very limited. It is very difficult to have in detail study on project work due to limited time period. The period of 4 to 6 weeks is not enough for the proper study of the project. 5) Inadequate data: The data provided was not up to the mark due to which we faced problems in our research. 6) Biasness in the responses: The answers provided by the respondents suffer from biasness. 7) Cost Factor: It was not possible to conduct extensive research due to paucity of funds.
  • 61. P a g e | 57 3.4 RESEARCH DESIGN AND METHODOLOGY 3.4.1Research Design Research: Research is a common parlance which refers to search for knowledge. It is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique, which provide precise tools, specific procedures, and technical rather philosophical means for getting and ordering the data prior to their logical analysis and manipulating different type of research designs is available depending upon the nature of research project, availability of manpower and circumstances. According to D. Slesinger and M. Stephenson research may be defined as “the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in the construction of theory or in the practice of an art”. Thus it is original contribution to the existing stock of knowledge of making for its advancement. In short, the search of knowledge through objective and systematic method of finding solution to a problem is research. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted. This research was descriptive in nature.
  • 62. P a g e | 58 Descriptive research: The research undertaken was a descriptive research as it was concerned with specific predictions, with narration of facts and characteristics concerning potential market of Splash Bar. This study is a descriptive research as the attitudes of the customers who buy the products have been stated. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products. 3.4.2 Sample Design The following factors have been decided within the scope of sample design: Universe of study: Universe of the study means the persons who are the customers of soft drink in the world. i) Theoretical: It covered the individuals who are the customers of Soft Drink in the world. ii) Accessible: It covered the individuals who are the customers of Soft Drink in Kanpur who are within our reach. Sample Size: A sample of minimum respondents was selected from various areas of Kanpur. An effort was made to select respondents evenly. The survey had:- Sampling Tools Respondents Number Questionnaire Customers 75 Vendors 25 Total 100
  • 63. P a g e | 59 Sample Unit: In this project sampling unit consisted of the various individuals who consumed as well as sold the soft drinks. Sampling Technique: For the purpose of research convenient sampling technique was used. Sampling Frame: It consisted of various sources from where information about the respondent is extracted 3.4.3DATA COLLECTION AND ANALYSIS DATA COLLECTION There were two types of data sources used in this research. These were (a)Secondary data Secondary data is the data collected from already been use or published information like journals, diaries, books, etc .In this research project, secondary source used were various journals, and website of various online journals. (b)Primary data Primary data is the data collected for the first time from the source and never have been used earlier. The data can be collected through interviews, observations and questionnaires. In this project, an appropriate questionnaire was designed which was filled by the customers & vendors of Soft Drink to know their opinions regarding the potential market of Splash Bar.
  • 64. P a g e | 60 DATA ANALYSIS Tools of Presentation: It means what all tools are used to present the data in a meaningful way so that it becomes easily understandable. In this research tables and graphs were used for presenting the data. Tools of Analysis: In this research the tools of analysis used were percentages. SPSS software were used to conduct Friedman Anova, Reliability analysis and Factor Analysis. 3.4.4 FIELD WORK The study was conducted in : 1. GUMTI NO.5, 2. 80 FEET ROAD, 3. AWAS VIKAS NO.1 & 4. NEHRU NAGAR.  The questionnaires were given to the respondents to fill in order to get their feedback.  Questions were read out to the respondents and the answers were noted.
  • 65. P a g e | 61 CHAPTER 4: DATA ANALYSIS & INTERPRITATION
  • 66. P a g e | 62 1. DATA ANALYSIS & INTERPRETATION:- 4.1 Analysis of vendor questionnaire Locality Freque ncy Percent Valid Percent Cumulative Percent 1 2 3 4 AVAS VIKAS 1 7 28.0 28.0 28.0 GUMTI NUMBER 5 6 24.0 24.0 52.0 NEHRU NAGAR 5 20.0 20.0 72.0 P ROAD 7 28.0 28.0 100.0 Total 25 100.0 100.0
  • 67. P a g e | 63 GENDER Frequency Percent Valid Percent Cumulative Percent 1 2 MALE 18 72.0 72.0 72.0 FEMALE 7 28.0 28.0 100.0 Total 25 100.0 100.0
  • 68. P a g e | 64 TYPE OF SHOP Freque ncy Percent Valid Percent Cumulative Percent 1 2 3 E & D 11 44.0 44.0 44.0 GROCERY 10 40.0 40.0 84.0 CONVENIENCE 4 16.0 16.0 100.0 Total 25 100.0 100.0
  • 69. P a g e | 65 WHAT IS AVERAGE FOOTFALL OF YOUR SHOP Frequenc y Percent Valid Percent Cumulative Percent 1 2 3 4 BELOW 100 1 4.0 4.0 4.0 100-200 6 24.0 24.0 28.0 200-300 13 52.0 52.0 80.0 300 AND ABOVE 5 20.0 20.0 100.0 Total 25 100.0 100.0
  • 70. P a g e | 66 What do you prefer to stock/sell? Frequency Percent Valid Percent Cumulative Percent 1 2 3 PEPSI 8 32.0 32.0 32.0 COCA COLA 15 60.0 60.0 92.0 OTHERS 2 8.0 8.0 100.0 Total 25 100.0 100.0
  • 71. P a g e | 67 While purchasing the product, what factor do you keep in your mind? Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 SCHEME 5 20.0 20.0 20.0 PRICE 2 8.0 8.0 28.0 DEMAND 12 48.0 48.0 76.0 AVAILABILITY 6 24.0 24.0 100.0 Total 25 100.0 100.0
  • 72. P a g e | 68 SPLASH BAR :- Are you aware of it Frequency Percent Valid Percent Cumulative Percent 1 2 YES 14 56.0 56.0 56.0 NO 11 44.0 44.0 100.0 Total 25 100.0 100.0
  • 73. P a g e | 69 Are you interested in selling selective cold drinks of Coca-cola(Coke & Sprite) with SPLASH BAR @ Rs. 5 Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 STRONGLY INTRESTED 8 32.0 32.0 32.0 INTRESTED 8 32.0 32.0 64.0 NEUTRAL 8 32.0 32.0 96.0 DISINTRESTED 1 4.0 4.0 100.0 Total 25 100.0 100.0
  • 74. P a g e | 70 Do you feel that soft drinks sold at low price have poor quality ? Frequency Percent Valid Percent Cumulative Percent 1 2 YES 10 40.0 40.0 40.0 NO 15 60.0 60.0 100.0 Total 25 100.0 100.0
  • 75. P a g e | 71 What is your perception about the maintenance & cleaning of SPLASH BAR? Frequency Percent Valid Percent Cumulative Percent 1 2 3 HECTIC & DIFFICULT 5 20.0 20.0 20.0 SIMPLE & EASY 16 64.0 64.0 84.0 NOT POSSIBLE & IRRITATING 4 16.0 16.0 100.0 Total 25 100.0 100.0
  • 76. P a g e | 72 What do you think about Quantity offered @ Rs.5? Frequenc y Percent Valid Percent Cumulative Percent 1 2 3 APPROPRIATE 9 36.0 36.0 36.0 200@ Rs. 10 15 60.0 60.0 96.0 NOT APPROPRIATE 1 4.0 4.0 100.0 Total 25 100.0 100.0
  • 77. P a g e | 73 Area of Improvement :- Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 PRICE 2 8.0 8.0 8.0 QUANTITY 4 16.0 16.0 24.0 MORE OPTION IN DRINK 10 40.0 40.0 64.0 TAKE AWAY 1 4.0 4.0 68.0 FIZZYNESS 8 32.0 32.0 100.0 Total 25 100.0 100.0
  • 78. P a g e | 74 Do you feel that with SPLASH BAR you will be able to increase your Business & Profit? Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 STROGLY AGREED 7 28.0 28.0 28.0 AGREED 5 20.0 20.0 48.0 NEUTRAL 11 44.0 44.0 92.0 DISAGREE 2 8.0 8.0 100.0 Total 25 100.0 100.0
  • 79. P a g e | 75 4.2 HYPOTHESIS TESTING IN CASE OF VENDORS 1. Hypothesis  Null hypothesis: H0: there is no significant relationship between interest of vendor to the business with SPLASH BAR.  Alternative hypothesis: H1: there is a significant relationship between interest of vendor to the business with SPLASH BAR. Are you interested in selling selective cold drinks of Coca-cola(Coke & Sprite) with SPLASH BAR @ * Do you feel that with SPLASH BAR you will be able to increase your Business & Profit? Cross tabulation Count Do you feel that with SPLASH BAR you will be able to increase your Business & Profit? Total STROGLY AGREED AGREED NEUTRAL DISAGREE Are you interested in selling selective cold drinks of Coca-cola(Coke & Sprite) with SPLASH BAR @ Rs.5 STRONGLY INTRESTED 5 2 1 0 8 INTRESTED 2 3 3 0 8 NEUTRAL 0 0 7 1 8 DISINTRESTD 0 0 0 1 1 Total 7 5 11 2 25
  • 80. P a g e | 76 Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 26.895a 9 .001 Likelihood Ratio 24.333 9 .004 Linear-by-Linear Association 13.813 1 .000 N of Valid Cases 25 Interpretation Since the value of (p =0.001) is less than (0.05), hence alternate hypothesis is accepted i.e. there is a significant relationship between Interest of vendor & Business with Splash Bar, which supports our research objective of potential market for Splash Bar. 2. Hypothesis  Null hypothesis: H0: there is no significant relationship between perceptions about maintenance of SPLASH BAR to the business with SPLASH BAR.  Alternative hypothesis: H1: there is a significant relationship between perception about maintenance of SPLASH BAR to the business with SPLASH BAR.
  • 81. P a g e | 77 What is your perception about the maintenance & cleaning of SPLASH BAR? * Do you feel that with SPLASH BAR you will be able to increase your Business & Profit? Cross tabulation Do you feel that with SPLASH BAR you will be able to increase your Business & Profit? Total STROGLY AGREED AGREED NEUTR AL DISAGREE What is your perception about the maintenance & cleaning of SPLASH BAR? HECTIC & DIFFICULT 0 1 4 0 5 SIMPLE & EASY 6 4 6 0 16 NOT POSSIBLE & IRRITATING 1 0 1 2 4 Total 7 5 11 2 25 Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 15.383a 6 .017 Likelihood Ratio 14.128 6 .028 Linear-by-Linear Association .012 1 .914 N of Valid Cases 25 Interpretation Since the value of (p =0.017) is less than (0.05), hence alternate hypothesis is accepted i.e. there is a significant relationship between Maintenance perception & Business with Splash Bar, which supports our research objective of potential market for Splash Bar.
  • 82. P a g e | 78 4.3 Analysis of Customers Questionnaire AGE Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 10-20 33 44.0 44.0 44.0 20-30 26 34.7 34.7 78.7 30-40 14 18.7 18.7 97.3 40-above 2 2.7 2.7 100.0 Total 75 100.0 100.0
  • 83. P a g e | 79 GENDER Frequency Percent Valid Percent Cumulative Percent 1 2 MALE 39 52.0 52.0 52.0 FEMALE 36 48.0 48.0 100.0 Total 75 100.0 100.0
  • 84. P a g e | 80 LOCALITY Frequenc y Percent Valid Percent Cumulative Percent 1 2 3 4 AVAS VIKASH 1 25 33.3 33.3 33.3 GUMTI NO. 5 16 21.3 21.3 54.7 NEHRU NAGAR 20 26.7 26.7 81.3 P. ROAD 14 18.7 18.7 100.0 Total 75 100.0 100.0
  • 85. P a g e | 81 PREFRENCES Frequency Percent Valid Percent Cumulative Percent 1 2 YES 66 88.0 88.0 88.0 NO 9 12.0 12.0 100.0 Total 75 100.0 100.0
  • 86. P a g e | 82 BRANDPREFER Frequency Percent Valid Percent Cumulative Percent 1 2 3 PEPSI 23 30.7 30.7 30.7 COCA-COLA 48 64.0 64.0 94.7 PARLE 4 5.3 5.3 100.0 Total 75 100.0 100.0
  • 87. P a g e | 83 DRINKPRIFER Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 6 COLA 10 13.3 13.3 13.3 THUMPS UP 23 30.7 30.7 44.0 MAAZA 17 22.7 22.7 66.7 SPRITE 17 22.7 22.7 89.3 FANTA 7 9.3 9.3 98.7 LIMCA 1 1.3 1.3 100.0 Total 75 100.0 100.0
  • 88. P a g e | 84 CONSUMENESS Frequenc y Percent Valid Percent Cumulative Percent 1 2 3 4 5 MULTIPLE TIME IN A DAY 7 9.3 9.3 9.3 TWICE A DAY 16 21.3 21.3 30.7 ONCE IN A DAY 11 14.7 14.7 45.3 TWICE IN WEEK 29 38.7 38.7 84.0 ONCE IN A WEEK 12 16.0 16.0 100.0 Total 75 100.0 100.0
  • 89. P a g e | 85 BRANDLOYALITY Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 STRONGLY AGREED 13 17.3 17.3 17.3 AGREED 15 20.0 20.0 37.3 NEUTRAL 32 42.7 42.7 80.0 DISAGREE 12 16.0 16.0 96.0 STRONGLY DISAGREE 3 4.0 4.0 100.0 Total 75 100.0 100.0
  • 90. P a g e | 86 NOTAVAILABLETHENPURCHASE Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 STRONGLY AGREED 15 20.0 20.0 20.0 AGREED 28 37.3 37.3 57.3 NEUTRAL 23 30.7 30.7 88.0 DISAGREED 7 9.3 9.3 97.3 STRONGLY DISAGREED 2 2.7 2.7 100.0 Total 75 100.0 100.0
  • 91. P a g e | 87 AWARENESS Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 FULL INFO. 17 22.7 22.7 22.7 PARTIAL INFO. 33 44.0 44.0 66.7 NO INFO. 23 30.7 30.7 97.3 NEUTRAL 2 2.7 2.7 100.0 Total 75 100.0 100.0
  • 92. P a g e | 88 QUANTITYSATISFACTION Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 STRONGLY AGREED 11 14.7 14.7 14.7 AGREED 33 44.0 44.0 58.7 NEUTRAL 22 29.3 29.3 88.0 DISAGREED 2 2.7 2.7 90.7 STRONGLY DISAGREED 7 9.3 9.3 100.0 Total 75 100.0 100.0
  • 93. P a g e | 89 FEELABOUTPRICE Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 EXPENSIVE 13 17.3 17.3 17.3 AFFRODABLE 45 60.0 60.0 77.3 CHEAP 13 17.3 17.3 94.7 NEUTRAL 4 5.3 5.3 100.0 Total 75 100.0 100.0
  • 94. P a g e | 90 POORQUALITY Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 STRONGLY AGREED 6 8.0 8.0 8.0 AGREED 19 25.3 25.3 33.3 NEUTRAL 26 34.7 34.7 68.0 DISAGREED 13 17.3 17.3 85.3 STRONGLY DISAGREED 11 14.7 14.7 100.0 Total 75 100.0 100.0
  • 95. P a g e | 91 WHYPREFER Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 CONVIENANT 19 25.3 25.3 25.3 AFFRODABLE 35 46.7 46.7 72.0 CLEANESS 12 16.0 16.0 88.0 AVAILABILITY 7 9.3 9.3 97.3 OTHERS 2 2.7 2.7 100.0 Total 75 100.0 100.0
  • 96. P a g e | 92 IMPROVEMENT Frequency Percent Valid Percent Cumulative Percent 1 2 3 4 5 6 PRICE 14 18.7 18.9 18.9 QUANTITY 20 26.7 27.0 45.9 TAKE AWAY FACILITY 22 29.3 29.7 75.7 HYZINE 5 6.7 6.8 82.4 FIZZYNESS 14 17.3 17.6 100.0 Total 75 98.7 100.0 System 1.3 75 100.0
  • 97. P a g e | 93 4.4 HYPOTHESIS TESTING IN CASE OF CUSTOMERS 1. Hypothesis  Null hypothesis: H0: there is no significant relationship between price of cold drink and preference for SPLASH BAR.  Alternative hypothesis: H1: there is a significant relationship between price of cold drink and preference for SPLASH BAR. What do you feel about price of the cold drink served by SPLASH BAR? * Please indicate the reason why will you prefer SPLASH BAR? Cross tabulation Please indicate the reason why will you prefer SPLASH BAR? Total CONV IENA NT AFFRO DABLE CLEAN ESS AVAILA BILITY OTHE RS What do you feel about price of the cold drink served by SPLASH BAR? EXPENSIE 0 8 1 0 0 9 AFFROD BLE 16 23 8 1 1 49 CHEAP 4 6 3 4 0 17 Total 20 37 12 5 1 75
  • 98. P a g e | 94 Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 16.833a 8 .032 Likelihood Ratio 17.347 8 .027 Linear-by-Linear Association 1.450 1 .229 N of Valid Cases 75 Interpretation Since the value of (p =0.032) is less than (0.05), hence alternate hypothesis is accepted i.e. there is a significant relationship between Price & Preference of Splash Bar , which supports our research objective of potential market for Splash Bar. 2. Hypothesis  Null hypothesis: H0: there is no significant relationship between Choice of soft drink & Preference of Splash Bar.  Alternative hypothesis: H1: there is a significant relationship between Choice of soft drink & Preference of Splash Bar.
  • 99. P a g e | 95 Do you prefer soft drinks? * Please indicate the reason why will you prefer SPLASH BAR? Please indicate the reason why will you prefer SPLASH BAR? Total CONVI ENANT AFFROD ABLE CLEAN ESS AVAILA BILITY OTHE RS Do you prefer soft drinks? YES 16 35 11 4 0 66 NO 4 2 1 1 1 9 Total 20 37 12 5 1 75 Chi-Square Tests Value df Asymp. Sig. (2- sided) Pearson Chi-Square 10.525a 4 .032 Likelihood Ratio 7.574 4 .109 Linear-by-Linear Association .302 1 .583 N of Valid Cases 75 . Interpretation Since the value of (p =0.032) is less than (0.05), hence alternate hypothesis is accepted i.e. there is a significant relationship between Choice of soft drink & Preference of Splash Bar , which supports our research objective of potential market for Splash Bar.
  • 100. P a g e | 96 CHAPTER 5: RECOMMENDATIONS & CONCLUSIONS
  • 101. P a g e | 97 5.1 RECOMMENDATIONS 1. The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel. 2. The company should focus to bring some more flavors in SPLASH BAR. 3. The company must keep a watch on its primary competitors in market in order to be able to compete with them. 4. The company should use new attractive system of word of mouth advertisement for SPLASH BAR to keep alive the general awareness in the whole market as a whole. 5. The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from the market and try to solve it without any delay to establish its own good credibility. 6. A strong watch should be kept on distributors and Market Developers so that the goodwill of the BRAND doesn’t get affected. 7. They should try to increase the quantity of cold drink offered through SPLASH BAR.
  • 102. P a g e | 98 5.2 CONCLUSION Though there were certain limitations in the study that was conducted. The sample allowed for some conclusions to be drawn on the basis of analysis that was done on the data collected. The data has clearly indicated that Coca-Cola products are more popular than the products of Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and AVAILABILITY, thus it should focus on good taste so that it can capture the major part of the market. The study also indicated that the consumers are satisfied with the Coca-Cola products and purchase them without any specific occasions. This study also shows that there is a huge potential market for SPLASH BAR introduced by coca-cola if some changes like increased quantity of cold drink as well as more flavors and more consumer oriented facilities (take away, fizzyness) are added to the new machine. In today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need to be always on your toes. Hence coca-cola should improve their distribution channel and training of their market developers.
  • 103. P a g e | 99 BIBLIOGRAPHY
  • 104. P a g e | 100 BOOKS: 1. Kotler Philip, “Marketing Management”, New Delhi, Prentice –Hall India, 10th Edition. 2. Kothari C.R., [1978] “Quantitative Technique” New Delhi, Vikas Publishing Pvt. Ltd.4th Edition. 3. Kothari C.R.,[2000] “Research Methodology” New Delhi, Wishwa Prakashan, 2nd Edition. 4. Gupta S.P., “Statistical Methods” New Delhi, Sultan & Co. MAGAZINES: 1. ARTICLES: 1. http://www.professionalacademy.com/blogs-and-advice/marketing-theories--- pestel-analysis 2. http://www.business-standard.com/article/companies/rural-consumers-can- taste-our-beverages-in-rs-5-cups-coke-zero-in-cities-soon-venkatesh-kini- 114020501257_1.html
  • 105. P a g e | 101 3. The Coca-Cola Company: (2014). Mission, Vision & Values. Retrieved July 16, 2014 from: http://www.coca-colacompany.com/our-company/mission- vision-values. 4. Gilhuly, J. (2014, March 1st). Coca-Cola Organizational Complexity. Retrieved July 16, 2014 from http://juliegilhuly.wordpress.com/2014/03/01/coca-cola-organizational- complexity 5. Vicky, N. (2010). The Coca-Cola Company 2010: Organizational Structure of the Coca-Cola Company. Retrieved July 16, 2014 from http://www.scribd.com/doc/37483762/Organizational-Structure-of-The-Coca- Cola-Company 6. The Coca-Cola Company: (2014).As Inclusive As Our Brands: 2009 U.S. Diversity Stewardship Report. Retrieved from http://assets.coca- colacompany.com/51/ba/c9ddc22646ca9660ee4d8f309c01/2009_Diversity_R eport.pdf
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