coca cola ( consumer buying behaviour) (2)

110
A PROJECT STUDY REPORT ON “The study of consumer buying behavior in mid segment cold drinks: with special reference to COCO COLA” Submitted in partial fulfillment for the Award of degree of Bachelor of Business Administration SUBMITTED BY : SUBMITTED TO : ANKIT KUMAR NAGAR DR.SONAL JAIN MBA III SEM (HOD) 2011-12

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Page 1: Coca Cola ( Consumer Buying Behaviour) (2)

A

PROJECT STUDY REPORT

ON

“The study of consumer buying behavior in mid segment cold drinks: with special

reference to COCO COLA”

Submitted in partial fulfillment for the

Award of degree of Bachelor of Business Administration

SUBMITTED BY : SUBMITTED TO :

ANKIT KUMAR NAGAR DR.SONAL JAINMBA III SEM (HOD)

2011-12

DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION, JAIPUR

Page 2: Coca Cola ( Consumer Buying Behaviour) (2)

PREFACE

Soft drink includes all types of non alcoholic carbonate flavoured or otherwise sweetened

beverages. Soft drinks are mostly packaged in 200 ml, 300 ml, 500 ml, 1000 ml, 1500 ml,

and 2000 ml and comes in a variety of flavours. It also comes in glass as well as in plastic

bottles.5ince so many changes and transformations are under going ever changing

consumer demands, Govt. Policies and innovative packaging. Then industries are much

emphasizing advertising to increase its sales.

With the introduction of fruit pulp based soft drinks, packaged in cardboard cartoons known

as "TERRAPACK" has been introduced in the market. The bottled soft drink market has

undergone a marginal decreases in demand After 1994 the eminent re-entry of coca-cola in

Indian soft drink Industry it is heading for two giants war to capture the market. It has

introduced various sharp and efficient tools say tour packages, prizes gift other avenues to

enhance social status and satisfying personal egos also.

Page 3: Coca Cola ( Consumer Buying Behaviour) (2)

ACKNOWLEDGEMENT

This project is an outcome of six weeks mandatory summer training, which I have to

undergo for the partial fulfillment of the MBA program. I wish to put on record my sincere

gratitude to the following person without whose support the completion of this project would

not have been possible.

I am grateful to Mr. Israr Ahmad (A.S.M) of Coca Cola Company, who has given an

opportunity for me to work in Coca Cola Company.

I would l ike to thank to my institute also where I got all the knowledge and

skil ls required for this research project. I also want to thank to Marketing

Faculty who took our project seriously and kept check on this t ime to t ime.

Without the co-operation of the above person this work

Certainly would not have been as good as, it is now.

(Ankit Kumar Nagar)

Page 4: Coca Cola ( Consumer Buying Behaviour) (2)

EXECUTIVE SUMMARY

This project was undertaken during the summer Training. A great deal of effort has been

put in preparing the questionnaire, in order to understand the market better {Ghaziabad}.

The Coca Cola Company was incorporated in September 1919 under the laws of the State

of Delaware and succeeded to the business of a Georgia Corporation with the same name

that had been organized in 1892. Coca Cola Company is one of numerous competitors in

the commercial beverages market. Of the approximately 53 billion beverage servings of all

type of consumed worldwide every day. Beverages bearing trademarks owned by or

licensed to company account for approximately 1.5 billion. Coca-Cola, the corporate

nourishing the global community with the world’s largest selling soft drink concentrates

since 1886. Coca Cola Company put his first step in India in 1952 but withdrew completely

in 1977 due to change in Indian Government policies..

Objectives: -

1. Extent to which merchandising assets are being used by the retailers in promoting

the brands.

2. Market demand of Coca Cola and Thums-up vis-à-vis Pepsi.

3. Market demand of Fanta vis-à-vis Mirinda-O

4. Market demand of Limca, Mountain dew, Sprite and 7up vis-à-vis Mirinda-L

5. Market demand of Maaza vis-à-vis Slice.

6. Market comparison of all the available brands of the soft drinks in the market.

7. Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.

Page 5: Coca Cola ( Consumer Buying Behaviour) (2)

The scope of the study was limited to Indian Market. This project was conducted for

Coca Cola Limited to assess the preferences of Customer in India. . Data collected

with help of questionnaire was put in excel sheets. A survey of 400 Customer was

conducted in Ghaziabad. The sample has covered the Cold Drink Customer of other

Competitor also as to understand the competition and their strength and

weaknesses.

A BRIEF DESCRIPTION OF THE FINDINGS:-

1. Extent to which merchandising assets are being used by the retailers in

promoting the brands: -

Retailer who are having DPS Boards / GSB and other display material like stands, posters

etc. were selected. Display material on the retailers shop was given rank between 1, 2 and

3 according to their visibility. If the DPS Boards / GSB and other display material were

found visible at first sight then they have been ranked '1st', if they were found visible at

second sight then they have been ranked '2nd' otherwise '3rd'.In the similar fashion ranks

were allotted to the refrigerators in the retailers shop.

While entering each shop it was taken care that the display materials are properly ranked

according to there visibility and incase of confusion, opinion of the consumers were taken.

Those shops with GSB’s were visited during the evening in order to see there visibility. In

these cases some glaring facts were found. (Areas which were looking like monopoly

markets of Coca-Cola because of its Red-color during the day had altogether a different

look in the evening. They turned into Pepsi monopoly during the evening because of the

GSB's. Researcher have also tried to find out what are the difficulties retailers are facing on

using these brands up to 100% of their strength.

2. Market demand of each of Coca-Cola's product vis-à-vis to their competitor

flavours in Pepsi's artillery: -

For this, retailers were asked about the market demand of the different brands and they

have been asked to rank the brands with respect to their competitive flavors. In this also

Page 6: Coca Cola ( Consumer Buying Behaviour) (2)

some interesting facts came out like no lemon brand exists in front of Coca Cola. Our

Limca, which we were thinking that it will be competing with Mountain dew, actually it is

grabbing the Coca-Cola's Sprite’s market and Pepsi’s, 7up's market. In case of Mirinda

(O) and Coca-Cola's Fanta, Mirinda’s market is going up day by day.

In case of mango drinks Slice even after entering the market so late has been able to

quickly pick up with Maaza. From the day Tetra Slice has entered the market it has

captured the market of Frooti.

In case of Aquafina, Coca-Cola's Kinley stands nowhere but brands which are competing

with kit are Paras, Bisleri, and Kingfisher.

3. Market comparison of all the available pickings of the soft drinks in the market: -

In the market this study is done to find out that on which packing, company should

concentrate more. From the day company has introduced its 200ml packs, Coca-Cola is

more economical for the lower income grade consumers like Riksha-pullars and others.

4. Brands/ Pack availability of Coca-cola and its brands vis-à-vis Pepsi and its

brands: -

For this study, retailers were asked that how many bottles they are having in their fridge

and how many of them are of the brand whose fridge they are having and about the

capacity of their fridge. In spite of these findings Researcher have worked on some other

things like retailers expectations from the company. He tried to find out how the company

can increase the sales. In the answer to this some funny recommendations came up (some

consumers recommended that Pepsi should change the percentage of the sweetening

content of its cola drinks). Secondly he tried to find out what are the problems they are

facing in promoting Pepsi.

Health effects:-

The consumption of sugar-sweetened soft drinks is associated with obesity,[12][13] type 2

diabetes, dental cavities, and low nutrient levels.[13]Experimental studies tend to support a

causal role for sugar-sweetened soft drinks in these ailments, [12][13] though this is challenged

Page 7: Coca Cola ( Consumer Buying Behaviour) (2)

by other researchers.[14][15] "Sugar-sweetened" includes drinks that use high-fructose corn

syrup, as well as those using sucrose.

(Coca Cola) is a Soft Drink company. The main objective of this company is to provide the

best services to their customer in low cost as compared to their competitor. They offer more

Healthy and sweetest drink in marginal cost. Occasionally they give some offers for the

benefit of the customers and retailer and distributor.

I hope will recognize this as well as take more references from this project report. HR

department has been given more emphasis for the study of the project because it is the

only sector where all type of Age group, Income class and different level of people are

represented.

Coca Cola Company manufactures and sells beverage concerates, sometimes referred to

as “beverages bases” and syrups, including fountain syrups, and finished beverages.

“Jo Dikhta Hai Wo Bikta Hai”

Page 8: Coca Cola ( Consumer Buying Behaviour) (2)

Contents

TITLE Page No-

1. INTRODUCTION OF INDUSTRY 9-14

2. INTRODUCTION OF COMPANY 15-41

3. RESEARCH METHODOLOGY 42-47

o Title of the Study 43

o Duration of the Project 43

o Objective of Study 43-44

o Type of Research 44-45

o Sample Size and method of selecting sample 45-46

o Scope of Study 47

o Limitation of Study 47

4. FACTS AND FINDING 48-49

5. ANALYSIS AND INTERPRATATION 50-68

6. SWOT 69-72

7. CONCLUSION 73-75

8. RECOMMENDATION AND SUGGESTION 76-79

9. APPENDIX 81-82

10. BIBLIOGRAPHY 83

Page 9: Coca Cola ( Consumer Buying Behaviour) (2)

INTRODUCTION

OF

INDUSTRY

Page 10: Coca Cola ( Consumer Buying Behaviour) (2)

1. INTRODUCTION OF INDUSTRY

The introduction of soft drink was due to necessity of traveling particular in the absence of

availability of reliable water. But meaning quietly changed with changing in time. It has

become so, popular commodity fashion & habit instead of requirement of quenching thirst.

The first marketed soft drinks (non-carbonated) in the Western world appeared in the 17th

century. They were made from water and lemon juice sweetened with honey. In 1676,

the Companies des Limonadiers  of Paris was granted a monopoly for the sale of lemonade

soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the

soft drink to thirsty Parisians.

Carbonated drinks:-

Soft drinks displayed on supermarket shelves.

In the late 18th century, scientists made important progress in replicating naturally

carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method

of infusing water with carbon dioxide to make carbonated water which has 3.4 mg in the

drink[5] when he suspended a bowl of distilled water above a beer vat at a local brewery in

Leeds, England. His invention of carbonated water (also known as soda water) is the major

and defining component of most soft drinks.[6]

Priestley found that water treated in this manner had a pleasant taste, and he offered it to

friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating

Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now

called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into

an agitated bowl of water.[7]

Page 11: Coca Cola ( Consumer Buying Behaviour) (2)

Another Englishman, John Mervin Nooth, improved Priestley's design and sold his

apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented

a generating apparatus that made carbonated water from chalk by the use of sulfuric acid.

Bergman's apparatus allowed imitation mineral water to be produced in large amounts.

Swedish chemist Jones Jacob Berzelius started to add flavors (spices, juices, and wine) to

carbonated water in the late 18th century.

Soft drink bottling industry:-

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated

drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are

under great pressure from the gas. Inventors were trying to find the best way to prevent the

carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was

patented by William Painter, a Baltimore, Maryland machine shop operator. It was the first

very successful method of keeping the bubbles in the bottle.

The Coca Cola Company was incorporated in September 1919 under the laws of the State

of Delaware and succeeded to the business of a Georgia Corporation with the same name

that had been organized in 1892. Coca Cola Company is one of numerous competitors in

the commercial beverages market. Of the approximately 53 billion beverage servings of all

type of consumed worldwide every day. Beverages bearing trademarks owned by or

licensed to company account for approximately 1.5 billion. Coca-Cola,

The corporate nourishing the global community with the worlds largest selling soft drink

concentrates since 1886. Coca Cola Company put his first step in India in 1952 but

withdrew completely in 1977 due to change in Indian Government polices. Again returned

to India in 1993 after a gap of 16 years giving a new thumb up to the Indian Soft Drink

Market. In the same year, the Company took over ownership of the nation's top soft-drink

brands and bottling network. No wonder, their brands have assumed an iconic status in the

minds of the consumers.

INTRODUCTION TO SOFT DRINKS IN INDIA:-

Gold Spot considered as the first soft drink, established 50 years ago before all

empowering Coca-Cola entered the company to dominate the scene. It faced no

Page 12: Coca Cola ( Consumer Buying Behaviour) (2)

competition and its euphoric image built up in western countries helped it get ready clientele

& glamour. Parle export private ltd. should be regarded as the first Indian company

introducing limca a lemon drink complimentary to their well entiemched Gold Spot in 1970

which got moderate success. However, before this, it had also introduced Cola-Pepino

which was withdrawn in face tough competition from Coca-cola.

Coca-Cola serves in India some of the most recalled brands across the world, which

include names such as Coca-Cola, Diet Coke, Sprite, Fanta, along with the Schweppes

product range. The acquisition of Thums Up brought some of the leading national soft

drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to this,

Kinley mineral water was launched in the year 2000.

THE VALUE CHAIN

The Coca-Cola Company

Bottler

Customer

Consumer

Page 13: Coca Cola ( Consumer Buying Behaviour) (2)

When Coca-cola bid farewell in 1977, Indian market was open for various cold drinks and

several companies came forward pushing the different in the market. Parle people

introduced their Cola-Thumps Up with a mightily bang saying “Happy days are here again”

as if happy days went away with Coca-cola pure drinks of Delhi, also without loosing much

time introduced pure drinks with Campa Orange and Campa Lemon. Modern bakeries

interested the market Double Seven, Mohan Meakings with Marry and Pick Up & McDowell

with Thrill, Rush and Sprint and Indian Market where there was competition previously a cut

throat competition and heavy advertising was on. Each one was trying their best to be come

under one company with “A Class” products in the field of soft drink business, now after a

long gap; Govt. of India had given permission to the Coca-Cola to start their business in

India. Coca-Cola came with Parle to do business on the Indian soil. They are trying best

regaining its prestige which it had before.

The government has adopted liberalized policies for the soft drink trade to give the industry

a boast and promote the Indian brands internationally. Although the import and

manufacture of international brands like Pepsi and Coke is enhanced in India the local

brands are being stabilized by advertisements, good quality and low cost. The soft drinks

market till early 1990s was in hands of domestic players like Campa, Thumps up, Limca etc

but with opening up of economy and coming of MNC players Pepsi and Coke the market

has come totally under their control.

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home

consumption. Fountains also dispense them in disposable containers Non-alcoholic soft

drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be

further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are

carbonated drinks while mango drinks come under non carbonated category.

The market can also be segmented on the basis of types of products into cola products and

non-cola products. Cola products account for nearly 61-62% of the total soft drinks market.

The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, Diet Coke, Diet

Pepsi etc. Non-cola segment which constitutes 38% can be divided into 4 categories based

on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

Page 14: Coca Cola ( Consumer Buying Behaviour) (2)

OPERATING GROUP:-

The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating

Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling

Investments. Certain prior year amounts have been reclassified to conform to the current

year presentation.

1) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)

Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an

approximate $65 million increase in accrued income taxes in their consolidated balance

sheet for unrecognized tax benefits, which was accounted for as a cumulative effect

adjustment to the January 1, 2007 balance of reinvested earnings.

2) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)

No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement

Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."

3) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure

Guidance for the Foreign Earnings Repatriation Provision within the American Jobs

Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax

expense associated with the repatriation of foreign earnings in 2005 when the previously

unremitted foreign earnings were actually repatriated.

4) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest

Entities," effective April 2, 2004.

Page 15: Coca Cola ( Consumer Buying Behaviour) (2)

INTRODUCTION

OF

COMPANY

Page 16: Coca Cola ( Consumer Buying Behaviour) (2)

2. INTRODUCTION OF COMPANY

If we Indians recall our memory there was a time when one was asked for a soft

drink, the brand that comes and gave a knock on our mind was Coca-Cola. Coca-Cola, the

word most admired trademark has maintained its special a sense of belongingness to India,

which had resulted some sort of its monopoly throughout the Indian soft drink market. It has

been said that the internal environment of the industry has been greatly effected from its

internal environment. The same thing was also happen with this famous company. When

the Government policy were in introduce and forced this MNC's to go outside from the India

market. Hence, it was thrown out of India in the year 1977. A lacuna was created at that

time in the country's soft drinks market. How ever after a gap of 17 years, the Coca-cola

has reappeared in the soft drinks market of India, by making itself more strong and

confident in this field.

In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon

10% and Orange 20%. There appears to be a concentrated rush to bag a share in the soft

Page 17: Coca Cola ( Consumer Buying Behaviour) (2)

drinks market. Due to a manifold increase in the demand of soft drinks large number of

company has entered into this competitive market scenario.

In India two major companies engaged in soft drinks market are Pepsi and Coca-

Cola. While RC cola is still a novice in the Indian Market, although it being the world oldest

soft drinks manufacturer.

Pepsi-Cola attacked Coca-cola before World War-II. Coca-Cola dominated the

Americans soft drinks industry. Pepsi-Cola was a drink

costing less to manufacturers and with a less satisfactory taste than coke.

During the Second World War Pepsi and Coke, both of them enjoyed a huge sale.

After the war the Pepsi sales started to fall relatively to Coke. The factors which were

responsible for the decline in Pepsi sales were poor image, poor task force, poor quality

control and dull packaging.

It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola

was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first bottling

facility of Coca-Cola in India was switched on. The Indian people welcomed the come back

of their most loved cola in the country with great enthusiasm and vigor. Coca-Cola market

its relaunching acquiring 5 Parle Exports Ltd. Top Selling products Viz-Thums up, Sprite,

Limca, Fanta, Mazza, K. Soda,Kwater,Coke.

In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the

supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped than the

plant at Ghaziabad.

RED, IN INDIA:-

Hindustan Coca Cola Beverages Pvt.Ltd., India division under Eurasia Operating Group

has been working on RED i.e. Right Execution Daily since FEB 2006. Coca Cola Company

believes that its success depends on their ability to connect with consumers by providing

them with a wide variety of choices to meet their desires, needs and lifestyles choices.

Company success further depends on the ability of their people to execute effectively, every

day.

Page 18: Coca Cola ( Consumer Buying Behaviour) (2)

COMPANY GOAL:-

Company goal is to use the Company’s asset –company brands, financial strength,

unrivaled distribution system, global reach and talent and strong commitment of our

management and associates-to become more competitive and to accelerate growth in

manner that creates value for our shareowners. Company wants to increase his profit and

sells.

Coca Cola Company manufactures and sells beverage concerates, sometimes referred to

as “beverages bases” and syrups, including fountain syrups, and finished beverages.

“THANDA MATLAB, COCA COLA”

A 100 YEARS OF THE SURVY GLASS BOTTLE OF COCA-COLA:-

Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga;

Tenn where its first bottling plant was started 100 year ago by two men struck one of the

most lucrative business deals in US history. Joseph Whitehead and Benjamin Thomas

offered Coca-Cola Company owner Asia Candler a dollar for the right to bottle soft drinks in

1899. Today I billion soft drinks are sold each day in more than 200 countries around the

world.

Candler had purchase what would become the Cola Company for $2,300 eight years earlier

from John Pemberton, an Atlanta Phamacist who astonished the world. Candler thought

the bottling Venture would never succeed, but he signed the contract with White Head And

Thomas and way, "and the rest is history", Bob Lovell, vice president of marketing for Coca-

Cola bottling company, United Inc., said in telephone interview from Chattanooga.

Lovell said Thomas had seen Cuban Fields hand drinking Pina Fria a Pineapple beverages,

from bottles while he was stationed in Cuba during Spanish American War. When he

returned to Chattanooga, he decided to pitch the idea of bottle soft drinks to coke, which

was then sold only as a fountain beverage.

Page 19: Coca Cola ( Consumer Buying Behaviour) (2)

"It occurred to him that Coca-Cola in bottles would be very popular", Lovell said, "Mr.

Candler did not see any future in it because the containers were not sound, but that's how it

all came about. "Thomas and Whitehead promised to pay one dollar for the right to bottle

Coca-Cola, but legend has it that no money changed hands.

THE IMAGE:-

The image is communicated all around the world in advertisement on media such as

newspaper, magazines, radio and televisions. The list goes on....

However, image is much than just advertising every person working within the coca-cola

system is part of the image whether one is involved in creating its advertising, making it's

quality products, or selling, merchandizing and distributing its beverage their hard work and

attitude will say something to the people about its product.

COCA-COLA SYSTEM FLOW CHART

In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon 10%

and Orange 20%. There appears to be a concentrated rush to bag a share in the soft drinks

Raw Material

Coca-Cola Company

Bottler

Customer

Consumer

Page 20: Coca Cola ( Consumer Buying Behaviour) (2)

market. Due to a manifold increase in the demand of soft drinks large number of company

has entered into this competitive market scenario.

COCA COLA: THE STORY BEHIND:-

Coca-Cola was formulated in 1886 by Dr. John Pemberton, a Pharmacist in Atlanta,

Georgia. The drink was sold ad refreshing elixir at the fountain counter of Jacob's

Pharmacy of which Dr. John Pemberton was part owner, unaware that the pharmacist had

given birth to a caramel colored syrup which is now the chief ingredient of the worlds

favorite drink. Today the white-on-red flow of Coca-Cola is familiar sight in more then 195

countries. The syrup combines with the carbonate water to fuel a $ 16.2 billion corporation

that has captured a 46% Slice of the global soft drinks market. The company estimates that

the drink is served more than 773 million times every day and if all Coke ever produced

were filed in standard bottles and placed end to end it would wrap around the equator 21,

161 times.

The story of Coca-Cola is a story of a drink and its charm with the consumer. The of

ecstasy and again that the drink has caused to those dedicated to its growth Pemberton

first managed to sell and average of 9 drinks per day, though a shop called Jacob's

pharmacy, in 1891, Candler bought Coca-cola company with four companies he formed the

coca-cola company with the initial stock of $100,000. Coca-Cola was registered at the US

patent office in 1893, and began selling at soda fountains for 5 cents a glass of therapeutic

refreshment 1894, I got into bottles, courtesy a candy merchant Joseph Boedenharn of

Mississippi.

Five years later; the drink was being bottled on a regular basis under a region wise

franchising system; and its first competitor Pepsi cola, Coca-Cola's first bottling plant

opened in Chatanooga, Tennessee followed by another in Atlanta in 1900. The unique taste

of cola was an outstanding success. Over the next two decade the number of plants

crossed 1000. In a bit to difference the prodect, the company adopted 6.5 ounce, pale

green countor bottle designed by the root glass company of Terri Haute, Indiana. Today it is

an intrinsic part of the brand.

Page 21: Coca Cola ( Consumer Buying Behaviour) (2)

The company broadened its horizons when Robert Woodruff the son of a banker who

acquired to Company for $25 million in 1919, assumed charge in 1923. He began by

ungrading bottling operations, brought in innovations like a six-bottle carry home carton,

and gear up advertising support. It was under Wood Ruff that the brand. Known

affectionately as coke by now associated it self with sportive events. By the early 1940's the

brand was selling as the "real thing" to set it self apart from "me to" cola's.

As a time went by the company brought out some new aerated drinks. The first one "Fanta"

appeared in the selves in 1960.

Its birth was an accident, the company's German name is an attempt to produce Coca-Cola

without some key ingredients, turned out into an orange flavored drink instead. its

strategists who feared the dependence on just one put a cap on growth welcomed it. While

Fanta was being rolled out the company bought minute made cosrp. Which in 1967 was

combined with Duncan foods to pave way for the Coca-Cola foods. Several beverages

followed the most notable being 'sprite', a lemon drink developed in the late 1950 and

formally launched in 1961.

Coca-Cola had diversified the company into businesses and it even had a steam generator

and boi8ler making division. Robert C Goizueta, Cuban born 27 years veteran took over as

the Coca-Cola unlike Pepsi company depended on a single brand. The best insurance

policy that he figured was to let coke evolve to the summer slacking it with variants, even

reinventing if needed. In 1982, the company launched what is now considered among the

world's most successful brand extensions 'Diet Coke', under the leadership of Sergio

Zyman, the head of us marketing. The idea was to retain the loyalty for the health

conscious drinker who loved the taste but hated the calories. After this it came out with

cafeeine free versions of its main drinks. yet in the US the company kept losing ground to

Pepsi. zyman, a former Pepsi marketer argued that the correct strategy was to replace 98

year old with better tasting cola, label it as "New Coke" and blare the news which is exactly

what the company did more a decode age in 1985. But when placed on the shelves it did

not budge. On wide spread protest it was recalled after 79 days.

The company has about 100 brands in its portfolio but coke, Fanta and sprite account for

most of its sales. In 1994, the real thing's coke sold over 52.5 billion liters. For the taste of it

diet coke along with Coca-Cola light sold 8.5 billion liters, which makes it the world's two top

Page 22: Coca Cola ( Consumer Buying Behaviour) (2)

non cola drinks sold over 6.5 billion liters each. Which sprite aimed at the independent

youngster two does not care what as others drink (the as line "obey you're a thrust"). In

1993, Coca-Cola reentered India after a 16 years ling exile, four years Pepsi made its debut

India. While Coke plays on brand nostalgia. Pepsi address the young crowd, which unlike a

in America is a dominate ort if the population here.

THE COCA-COLA COMPANY:-

The Coca - Cola Company is the world's largest beverage company. Along with Coca -

Cola, recognized as the world's best - known brand, The Coca - Cola Company markets

four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite, and a

wide range of other beverages, including diet and light soft drinks, waters, juices and juice

drinks, teas, coffees and sports drinks. Though the world's largest distribution system,

consumers in more than 200 countries enjoy The Coca - Cola Company's products at a rate

exceeding 1 billion servings each day. For more information about the Coca - Cola

Company, please visit our website at http: // www.coca- cola.com/.

Forward - Looking Statements:-

This press release may contain statements, estimates or projections that constitute "forward

- looking statements" as defined under U.S. federal securities laws. Generally, the words

"believe," "expect," "intend," "estimate," "anticipate," "Project," "will" and similar expressions

Page 23: Coca Cola ( Consumer Buying Behaviour) (2)

identify forward - looking statements, which generally are not historical in nature. Forward -

looking statements are subject to certain risks and uncertainties that could cause actual

results to differ materially from The Coca - Cola Company's historical experience and our

present expectations or projections. These risks include, but are not limited to, changes in

economic and political conditions, changes in the non - alcoholic beverages business

environment, including actions of competitors and changes in consumer preferences;

product boycotts; foreign currency and interest rate fluctuations; adverse weather

conditions; the effectiveness of our advertising and marketing programs; fluctuations in the

cost and availability of raw materials; our ability to achieve earnings forecasts; regulatory

and legal changes; our ability to penetrate developing and emerging markets; litigation

uncertainties; and other risks discussed in our Company's filings with the Securities and

Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, which

filings are available from the SEC. You should not place undue reliance on forward - looking

statements, which speak only as of the date they are made. The Coca Cola Company

undertakes on obligation to publicly update or revise any forward - looking statements.

Page 24: Coca Cola ( Consumer Buying Behaviour) (2)

ORGANIZATIONAL STRUCTURE

CHAIRMAN

PRESIDENT

VICE PRESIDENT

R.G.M.

A.G.M.

I.S.M.

F.M. S.M. P.M. H.R.M.

M.O.E. A.S.M. S.E.

S.E. S.E. S.E.

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Where,

R.G.M. : Regional General Manager

A.G.M. : Area General Manager

I.SM. : Information System Manager

F.M. : Finance Manager

S.M. : Sales Manager

P.M. : Production Manager

H.R.M. : Human Resource Manager

A.S.M. : Area Sales Manager

M.O.E. : Marketing Operation Executive

C.D.E. : Cold Drink Executive

S.E. : Sales Executive

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PRODUCT PROFILE OF COCA COLA:-

The product range of the coke has listed brands:

Coke : 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt

Thumps UP: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Limca: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Fanta: 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Sprite: 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

Mazza: 250 ml, Tetra Pack

Diet Coke: 330ml, 1.5 lt, 2lt.

Kn. Soda: 300ml, 500ml,

Kn. Water: 500ml, 1lt, 2lt,

Some facts About Coca Cola Pvt Ltd:-

Head office Atlanta (U.S.A)

Corporate office Enkay Towers,

Udyog viharV,

Gurgaon,Haryana

Chief Executive officer Alex von Behr

Total Investment Rs.3200 Crore

Owned Bottling Plants 35

No. of Franchisees 16

No. of Employees 6000

Page 27: Coca Cola ( Consumer Buying Behaviour) (2)

THE FUTURE OF COCA-COLA:-

While dong business overseas offers Coke wonderful growth opportunities it also has its

own disadvantages. The economic slowdown in various overseas markets and the strong

dollar had their impact on Coca-Cola revenues and bottom line in 1999. But the company

optimistic about the future.

Mc-Douglas Investor, The Chief Executive Officer of the Coca-Cola Company says, "This

past year 1999 has been a challenging period for the Coca-Cola Company as economic

environment became more uncertain in the later part of 1999, we strongly believe that our

fundamental opportunities for long term growth have not changed".

As long as maximization of share holder wealth remain coke's focus for its future4 is

assured Goizueta had stated and proven to the world that focus on shareholder wealth

does more good to the company than focus on revenues and it is not hat coke does not

enjoy volumes for it is world's No. 1 soft drink manufacture. It is not content with this title

and is aiming at higher volumes year after year. Surely coke will continue to grow. Point on

Roberto had reduced the company basically to its trademark and the returns are so

astronomical as to be off the boards. It just absolutely added a jet engine to their

performance.

COKE'S BOTTLING STRATEGIES:-

In the soft drink business the bottlers are responsible significant extent for ensuring the

availability of the products. Bottlers are supplied with concentrate to which they add aerated

water and bother ingredients before packing and sealing either cans or bottles. Bottlers play

a strategic role in the success of soft drinks companies and this was not far from Goiueta's

mind.

In 1986 the company merged some of its company owned bottling operations with two large

ownership groups that had been put up for sale. All these bottling activities were combined

to from its own subsidiary Coca-Cola Enterprises (CCE) to handle bottling operations. The

Coca-Cola Company took 49 percent equity stake in Coca-Cola Enterprises enabling it to

retain its own balance sheet.

Page 28: Coca Cola ( Consumer Buying Behaviour) (2)

MARKET PLACE:-

More than a billion times everyday, thirsty people around the world reach for Coca-Cola

products for refreshment. They deserve the highest quality-every time. Our promise to

deliver that quality is the most important promise we make. And it involves a worldwide, yet

distinctively local, network of bottling partners, suppliers, distributors and retailers whose

success is paramount to our own. Our investment in local communities in over 200

countries totals billions of dollars in jobs, facilities, marketing, the purchase of local goods

and services, ands local business partnerships, always and everywhere, we pursue

continuous innovation in the products we offer, the processes we use to make them, the

packages we develop and the ways we bring them to market.

COMPETITOR:-

The biggest and perhaps the only serious for the coca-cola worldwide has an already

been Pepsi. In India, as per as the Cola segment is concerned the with the biggest

competition to coke comes from its brands of Pepsi viz. Pepsi and Mirinda. Thums-up,

which was the leading brand of Parley product, was acquired by Coca-Cola just over a year

ago to bolster its market share in India. Today, Thums-up along with coke, the leading

brand of the Coca-Cola Company, other still competition to Pepsi, which despite this stiff

competition is still by far the single most popular Cola drink in India

With both the companies being backed fully by the parent concerns based in the

united state, the fight to become the dominant player in the huge Indian Soft drink market

continues unabated. Aggressive ad campaign's, sale-promotion, schemes for retailers are

just some of the strategies being adopted by the two companies to outwit each other and

grab and large share of the market.

In the Cola segment, which occupies by far the largest chunk of the soft drink market

in India, the market share of Coke is 60%while the market share of Thums-up is 32.16%.

The market share of Coke in this Cola Segment is 27.84%. The remaining market share is

occupied by the other brands, which constitute about 14% of the Cola market share.

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So Coca-Cola with its two brand clubbed together i.e. Thums-up + Coke occupies a

combined market share of 60% (32.16% + 27.84%)

which is just higher than the market share occupied by Pepsi on the all India basis.

The market share for the Cola segment of different in India is given in Graph below:

The fight between the Rs. 1,000 Crore Pepsi co. India. Pepsi and Coca-Cola India,

The fully owned subsidiary of the $ 18.55 Billion Atlanta based "The Coca-Cola' company to

become India's No. 1 player seems likely to continue unabated over the next four years".

PEPSI PROFILE:-

Pepsi Co. Inc. was founded in the year 1965. Major products of the new company are Pepsi

Cola. Diet Pepsi and Mountain Dew. Pepsi entered the Indian market in 1992 and now is

the market leader with a market share of 26.5 percent in the cola segment. Pepsi is in

between the two of it's closet competitors as far as marketing strategies are concerned.

Pepsi is an international drink with Indian imagery in it's communication Traditional focus of

Pepsi has been on the early teenager with a gender skew more to the female.

Pepsi is by far the more aggressive player in the market. With in your face advertising

continuous event marketing targeting the new generation and eye catching merchandising.

It's got its selling strategy well mapped out.

The company has always been innovating it's ad campaigns which has helped the

company to get top of the mind recall. From "The choice of the new generation" to the

"Freedom" campaign the company has been able to Indianise the brand. With the help of

promotional schemes Pepsi has managed to keep the brand alive and has not let it become

old. During 1995 the total ad spent by the company was Rs. 6.98 crore only on television

Pepsi has set aside Rs. 8 crore for its advertising programme in the run up to and during

the cricket world cup.

Page 30: Coca Cola ( Consumer Buying Behaviour) (2)

Product lines of Coke& Pepsi are as follows:-

FLAVOUR COKE BRAND PEPSI BRAND

Cola Coca-Cola

Thums-up

Coke diet

Pepsi

Pepsi diet

Orange Fanta Mirinda

Cloudy Lemon Limca Mirinda lime

Clear lime Sprite 7up

Mango Maaza Slice

Page 31: Coca Cola ( Consumer Buying Behaviour) (2)

COMPETITIVE AREA:-

The soft drink market all over the world has been witnessing a neck to neck battle between

the two major players, Coca-Cola and Pepsi since the very beginning. The thirst quenchers

are trying hard to have to major chunk of the pie of carbonated soft drink market. Both the

players are spending their energies in building capacity, infrastructure, promotional

activities etc.

Coca-cola being 11 years older than Pepsi has dominated the scene in most of the soft

drink markets in the world and enjoying leadership in terms of market share. But the Coca-

Cola people are finding it hard to keep away Pepsi, which has been narrowing the gaps

regularly. The two are posing threats to each other in every nook and corner of the world.

While Coca-Cola has been earning most of its bread and butter through beverage sales,

Pepsi has a multi products portfolio with some portion from the same business.

The two warriors are face to once again here in India with different strategies and tactics to

attack the rival. Coca-Cola is focusing upon the joint ventures with the existing bottlers

(FOBO) franchise owned bottling operations to enhance its control on manufacturing

and marketing of its products range and attain the quality standards of its class.

Countering it Pepsi has taken the battle its own hands by floating as investment of $ 95

billion to set Pepsi Company. India holdings, as subsidiary for (COBO) Company owned

bottling operations. Both the companies are following different path to reach the same

destiny i.e. to fetch the bigger portion of aerated soft drink market. Both consider India

a huge potential market, as per capita consumption here is a mere 3 serving annually

against the world average of 80. Therefore, they are putting in their best efforts to woo the

Indian consumer who has to work for 1.5 hours to buy a bottle of soft drink. In comparison

to the international norms minutes, a major hurdle to cross over for both the athletes for

getting No. 1 position comparison tot he inter. Coca-Cola is well set with its 53 bottling sites

through out the country giving tit an edge over competition by processing a well-built

bottling and distribution set-up. On the other hand, Pepsi, with two more years in India, has

been able to set an image of a winner in India and has been able to get the pulse of the

India soft drink market. The soft drink giants are leaving on stone unturned and her for the

long terms.

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Coca-Cola has been penetrating the market through its wide product range with a

determination to change consumption pattern of soft drink in India. Firstly, they upgraded

the whole industry by introduction 300 ml bottles, which in turn had given the industry a

booming growth of 20% as compared to the earlier 5%. They want to develop a coca

culture here and are working on a strategy to offer soft drink in every possible package. In

Coca-Cola camp, the idea of competition has not come from Pepsi, but from the other

beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite aggressive in its

approach to Indian Consumer. They are desperately working on the strategy to be winners

in the hot cola war between two big barons. According to Pepsi philosophy, it's the

madness that encourages executive to think, to conjure up those creative tactics to knock

the fizz out their competition. Pepsi had plumbed a large on the visibility of its blue red and

white logo. They have been going with aggressive marketing by putting Sachin Tendulkar,

Akshay Kumar and now Shahrukh Khan in their advertisement to endorse their brand, the

role models for its targeted consumer the teenagers. They have increased the fizz in the

market place by

introducing the dispensers called Fountain Pepsi and has been enjoying a lead over its rival

there.

Coca-Cola on the other hand, has been working on the saying slow and steady wins the

race's side by retailing to every more of its competitor. They have procured the shield of

Thums-Up with a handsome market share in Indian soft drink market.

Countering Pepsi's international commercial that used two chimpanzees to cock a snoop at

coke, Thums-up come with the ad line, Don't be Bandar, taste the Thunder. Also Thums-

Up has been positioned now very near to that young image of Pepsi and giving it a though

time.

These cool merchants have put everything on fire. It Coke got the status of the

official drink of wills. World Cup, Pepsi blushed as nothing official about it. As

Thums-Up projected as 'Saaree Jahan Se Achcha' Pepsi was passionate enough with

'Freedom to be' and now the "Yeh Dil Mange More" when Thums-Up came with Thunder

Blast, the other offered 'Pepsi Stuff Card'. If Red is meant for coke, Pepsi has chosen to

be blue.

Page 33: Coca Cola ( Consumer Buying Behaviour) (2)

MAIN COMPETITORS

COCA-COLA V/s PEPSI

Coca-Cola Pepsi

Total Investment in India Rs. 250 Crores Rs. 500 Crores

New Investments Rs. 2400 Crores Rs. 300 Crores

Number of Employee 140 2400

Number of owned bottling Plants 9 11

Number of Franchisees 54 15

Number of Fountain 1500 4000

Total Investment by bottlers Rs. 125 Crores Nil

New Plants Planned Nil 6

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(Year of 2010-11 )

Overall volume of Coca-Cola products have increased by 40% whereas the industry growth

rate is 20%. Last year total sale of soft drink Industry in India was approximately 170 million

crates. Out of these around 60% was of Cola and other 40% was of non-Cola Brands.

Sources of Data :- This Last Year data is provided by Sales Executive of

Company.

MARKETING MIX:-

Prof. Neil H Barden defines marketing mix as 'the appointment of effort, the combination,

the designing and integration of the elements of the marketing into a programme of mix

which will best achieve the objective of the enterprise at the give time."

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing

objective of in the target market. The marketing problems are analyzed:

1. By utilizing the important forces emanating from the marketing operation of an

enterprise.

2. By adopting producer & for an efficient marketing programme.

ELEMENTS OF MARKETING MIX :-

The marketing mix denotes a combination of various elements which in their totally

constitute affirms marketing system. McCarthy popularized a four factor classification of the

se tools called the four P"s, product, price, place promotion.

PRODUCTS:-

Product variety

Quality

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Design product

Brand name

Feature

Packaging

Size service

Warranties

Returns

PRICE:-

List Price

Discounts

Allowances

Payment period

Credit teams

PLACE:- Channels

Coverage

Place assessments

Locations

Inventory

Transports

PROMOTION:-

Sales promotion

Page 36: Coca Cola ( Consumer Buying Behaviour) (2)

Advertisement

Sales Forces

Public relations

Direct marketing

The particulars marketing variable under each P are shown below:

4 Ps 4 Cs

PRODUCT

PRICE

PLACE

PROMOTION

CUSTOMER NEED

AND WANTS

COST TO THE

CUSTOMER

CONVENIENCE

COMMUNICATION

DISTRIBUTION IN THE COCA-COLA SYSTEM:-

GETTING PRODUCTS TO MARKET

One of the value of the coca-cola system is presence that coca-cola should exist

everywhere. In the words of former CEO-India operations - Richard Nichoilas, "Our goal

is to have coke available within an arm's reach of desire". To fulfill this gool, coca-cola

not only produces products, but also has an effective systems to distribute them all over

India.

DISTRIBUTION:-

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Distribution Sales + Delivery + Merchandising + Local Account Managemetn.

Distribution of Coke's products includes the activities of sales, delivery merchandizing and

local accounts management. These are two major types of distribution systems.

(i) Direct and Indirect:-

In direct distribution, the bottler partner direct control over the activities of sales,

delivery, merchandizing and local account management.

In indirect distribution, an organization which is not a part of the coca-cola system

has control of one or more of the distribution elements (Sales, Merchandizing and local

accounts managements).

With Direct distribution there are two types of sales:-

Advanced sales and conventional sales. :-

In conventional sales, all the distribution activities (Sales, Delivery, Merchandizing and

Local Accounts Management) are performed by the same persons.

In advanced sales, sales and delivery are performed by different people within the coco-

cola system.

Difference between a Customer and a Consumers.

A consumer is some one who drinks coca-cola products.

A customer is a business location which sells or serves coca-cola products to

consumers.

MERCHANDIZING:-

One the products are delivered to the customer's they are promoted at the point-of-

purchase to maximize the company's sales opportunities, merchandizing involves looking at

the presentation of the products through the eyes of the consumers. It is an on-going

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process that help the company present its products properly to the consumers in the market

place for instance, is the display attractive? Are the product neatly organized.

PRESENTING THE PRODUCTS:-

Coca-Cola presents its products for sale in four different ways. They are as follows:

Secondary Display

Coolers

Vending Machines

Post Mix / Pre Mix

INDIA'S RELATIONSHIP WITH COCA-COLA:-

Just after independence, the Maharaja of Patiala oversaw his coca-Cola-Cola hoarding

from his huge, ornate palace, Coca-Cola export representative Frank Harrold, was awed by

the Maharaja's opulent life style. In 1993 after Coca-Cola returned to India after a 16 years

absence (beorge Fernandes threw the company out of the country in 1977 on the pre text

that it had refuse to divalge its formula to Indian officials), CEO of the Coca-Cola Company,

Robesto boirueta "Salivated over a virtually untapped market of 840 million people".

PROMOTION : THE COCA-COLA WAY

Goal for the 90's :-

"To place coca-cola within an arm's reach of desire.

Consumer activity clusters:-

Grocery shopping

Other shopping & services

Eating and drinking Entertainment/ Recreation. Leisure

Travel / Transportation/ Hospitality

Educational

At Work

Page 39: Coca Cola ( Consumer Buying Behaviour) (2)

The 3A's:-

The strategy for reaching in creasing numbers of consumers in India is based on the belief

that consumers will buy our products it they are Available, Affordable and Acceptable.

Strategies for the 3A's:-

Focus on the consumer and customer,

To provide quality customer services, and caring about the quality of performance in

respective jobs.

Caring enough about what we do, to it the best we know how.

The 3A's is Coca-Cola underlying strategy for meeting its goal to reach increasing numbers

of consumer's. How does coke position its limited resources to help meet its good. Let us

explore the specific ways in which the Coca-Cola system addresses each of the 3A's.

AVAILABILITY:-

Some of the way sin which the Coca-Cola Company hopes to increase availability of its

product include improved or innovative packaging, dispensing systems, distributions

system, marketing.

AFFORDABILITY:-

The ways to address affordability include pricing decisions, as well as resource

management. To make its product available at a price affordable to the consumer.

Continually processes more efficient and therefore more cost-effective.

ACCEPTABILITY:-

Making coca-Cola brand products the beverage choice for any occasion's depends on a

variety of strategies to reach the target audience. The common strategies adopted to effect

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acceptability were though sponsorships, promotion youth market activities, community

programs, and other activates.

Coca Cola mission, vision and values outline who they are, what they seek to

achieve, and how they want to achieve it. These provide a clear direction for the Company

and help ensure that they are all working toward the same goals.

MISSION:-

Everything Coca Cola do is inspired by their enduring Mission:

To Refresh the World...in body, mind, and spirit.

To Inspire Moments of Optimism...through their brands and their actions.

To Create Value and Make a Difference…everywhere they engage.

VISION:-

To achieve sustainable growth, Coca Cola has established a Vision

with clear goals: -

Planet : Being a responsible global citizen that makes a difference.

Portfolio: Bringing to the world a portfolio of beverage brands that

anticipate and satisfy Peoples' desires and needs.

Partners: Nurturing a winning network of partners and building mutual loyalty. Profit:

Maximizing return to shareowners while being mindful of our

VALUES:-

Coca Cola is guided by shared Values that they will live by as a company and as

individuals:

Leadership : “The courage to shape a better future”

Passion : “Committed in heart and mind”

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Integrity : “Be real”

Accountability : “If it is to be, it's up to me”

Collaboration : “Leverage collective genius”

Innovation : “Seek, imagine, create, delight”

Quality : “What we do, we do well”

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RESEARCH

METHODOLOGY

Page 43: Coca Cola ( Consumer Buying Behaviour) (2)

3. RESEARCH METHODOLOGY

3.1 TITLE OF THE STUDY:-

All the findings and conclusions are based on the survey done in the working area within

time limit. I tried to select a sample representative of the whole group during my job training.

I have collected data from 200 respondents for studying (Consumer Buying Behavior

With reference to “Coca Cola”) Market Segmentation, selected randomly from different

areas in Ghaziabad.

3.2 DURATION OF THE PROJECT:-

16th May 2011 to 30 June 2011 (45 DAYS)

3.4 OBJECTIVES OF STUDY:-

PRIMARY OBJECTIVES:-

To find out to which extent merchandising assets are being used by the retailers in

promoting the product of coca-cola

To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi

To study marketing strategies adopted by coca-cola.

To study customer satisfaction about coca-cola products.

To study the effect of RED on boosting sales of coca-cola products

To find out Market demand of Fanta vis-à-vis Mirinda-O

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To find out Market demand of Limca, Sprite vis-à-vis Mirinda-L and 7up

To find out Market demand of Maaza vis-à-vis Slice.

SECONDARY OBJECTIVES:-

To find out Market comparison of all the available brands of the soft drinks in the

market.

Brands availability of Coca-cola and its brands vis-à-vis Pepsi and its brands.

3.5 TYPES OF RESEARCH:-

Date sources: sources of information are as follows:-

(1) Primary sources:-

Who’s the primary source??

Retailers are the primary source.

(2) Secondary sources:-

Researcher collected secondary information from Journals of Company, News

papers,Magazines.

Research Approach:-

Researcher followed one approach to collect the information

(1) Survey – Researcher contacted the retailers in the market place to gather the relevant

information.

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(2) Number of Retailers contacted – 200 Retailers.

Survey Area: Kanpur & NEAR BY AREAS

1) Kanpur, Station road

2) Kanpur,Main market

3) Bhaguwala Market ,Kanpur Road

4) Kotwali market ,Lucknow road

5) Shanpur, Main Market

6) Raipur Market, Nagina Road

7) Haridwar road, Chidiapur

8) Kiratpur Market

9)

Researcher began his survey with route riding, i.e. traveling along with the sales persons on

his daily trip to service the retailers. Researcher asked the retailers about their uses of

Coca-cola merchandises and try to Asses the market share of the Coca-cola’s different

brands. This is very important point as it gave me an inside view of the whole setup and

further on during the planning of any of the promotions. Researcher was aware of the

limitations and strengths of the environment he would be working in. The various methods

and principles adopted are listed below:

3.5 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE:-

Sample size:-

The number of sample is 110 from Ghaziabad city, which fulfills the requirement. Each

respondent is treated as a case of detailed analysis.

Sampling design:-

Convenience sampling is used for this study. Convenience sampling is used in exploratory

research where the researcher is interested in getting an inexpensive approximation of the

truth. As the name implies, the sample is selected because they are convenient. This non

probability method is often used during preliminary research efforts to get a gross estimate

of the results, without incurring the cost or time required to select a random sample.

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Data collection method:-

For the accumulation of data the sources were primary and secondary data.

Primary Data:-

These data are raw material. They are the measurement observed and recorded as a part

of original study. They are original in character. The investigator or researcher directly

collects this data. The basic form of obtaining this data is by observing and questioning.

The Primary data was a detailed interview schedule with the help of a detailed

questionnaire. The samples were drawn purposively from various areas for the relevance of

the study. Discussions were held with the general, branch manager and executives of the

company to design and execute the research

Secondary Data:-

They are not originally drawn by the researcher as fresh data. These are collected by some

other person for this purpose and published. These types of data can be collected through

various sources.

For this study the secondary data were collected from magazines ,journals , references and

websites and manuals of the Idea.

Tools and techniques of analysis-

Percentage analysis and statistical tools were used in the study. The statistical tools used

for data analysis are Rank correlation and hypothesis testing. ANOVA and t – test had

applied for hypothesis testing.

Rank Correlation =

If Rank Correlation is negative we can say that there is no correlation between the variable,

if rank correlation is positive we can say that there is a relation between the variable, if the

Rank correlation is less than.06 we can say that there is a low degree of relation between

the variable, if rank correlation greater than .06 we can say that there is high degree of

relation between the variables and if Rank Correlation is very nearer to 1 such as .99 we

can say that there is very high degree of relation between the variable.

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3.6 SCOPE OF THE STUDY:-

Study of Management of RED helps the management in the following ways:-

It improves management’s ability to plan and control the sales of Coca Cola.

It will certainly help the strategies for survival and growth of the Company.

It avoids wastage and underutilization of resources which can be employed

profitably.

It is relevant to inflows and outflows conditions of the Company.

3.7 LIMITATION OF THE REPORT:-

I found the following limitations during my actual project execution:-

More stress was given on the primary data.

The finding of the survey will be strictly based on the response of the consumers,

since it is difficult to ascertain the authenticity of the statements.

All the observation and recommendation will be made on the feedback obtained

from the survey.

The sample for the survey covered subscribers from India only.

The time for the research was limited.

The result is limited to the reliability of method of investigations, measurement and

analysis of data.

People were not interested in filling questionnaire properly.

It is very small research, which may be insufficient to give the real picture.

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FACTS

&

FINDINGS

Page 49: Coca Cola ( Consumer Buying Behaviour) (2)

4. FACTS & FINDINGS

It improves management’s ability to plan and control the sales of Coca Cola.

It will certainly help the strategies for survival and growth of the Company.

It avoids wastage and underutilization of resources which can be employed

profitably.

It is relevant to inflows and outflows conditions of the Company

More stress was given on the primary data.

The finding of the survey will be strictly based on the response of the consumers,

since it is difficult to ascertain the authenticity of the statements.

All the observation and recommendation will be made on the feedback obtained

from the survey.

The sample for the survey covered subscribers from India only.

The time for the research was limited.

The result is limited to the reliability of method of investigations, measurement and

analysis of data.

People were not interested in filling questionnaire properly.

To find out to which extent merchandising assets are being used by the retailers in

promoting the product of coca-cola

To find out Market demand of Coca Cola and Thums up vis-à-vis Pepsi

To study marketing strategies adopted by coca-cola.

To study customer satisfaction about coca-cola products.

To study the effect of RED on boosting sales of coca-cola products

Page 50: Coca Cola ( Consumer Buying Behaviour) (2)

5. ANALYSIS & INTERPRETATION

FFIGUREIGURE 1 1

Out of Coca-Cola and Pepsi Beverages India Limited whose GSB do you have ?

PBI11%

Coca-Cola14%

Both 5%

None70%

PBI

Coca-Cola

Both

None

Out of the sample size which has been covered only 11 % of the shops had Pepsi’s

GSB’s vis a vis to 14 % of Coca-Cola’s GSB’s.

14 % of the sample size had the GSB’s of both the major players of the soft drink

industry.

70% of the sample size didn’t have any of the GSB’s displayed.

FIGURE 2FIGURE 2

Ranking according to visibility - Pepsi ?

72%

14%

14%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

49%

38%

13%

Rank 1

Rank 2

Rank 3

72% of the shops having Pepsi GSB’s got the 1st rank according to their visibility

status on the other hand only 14% of the retailers got the rank 2nd and 3rd each. This

Page 51: Coca Cola ( Consumer Buying Behaviour) (2)

shows that retailers who got the GSB as display material from the company are

using them satisfyingly.

49% of the shops having Coca-Cola GSB’s got the rank 1st according to their

visibility status on the other hand 38% of the retailers got the rank 2nd and only 13%

of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,

Pepsico.’s GSB are being used in more proper way.

FFIGUREIGURE 3 3

Out of Coca-Cola and Pepsi Beverages India Limited whose DPS Board do you have ?

PBI27%

Coca-Cola8%

Both 3%

None62%

PBI

Coca-Cola

Both

None

Out of the sample size which has been covered 27 % of the shops had Pepsi’s DPS

Boards vis -a -vis to 8 % of Coca-Cola’s DPS’s.

3 % of the sample size had the DPS Boards of both the major players of the soft

drink industry.

62% of the sample size didn’t have any of the DPS Boards displayed.

**DPS-DPS-DISTRIBUTORDISTRIBUTOR PROMOTINALPROMOTINAL S SIGNAGEIGNAGE* F* FIGUREIGURE 4 4

Ranking according to visibility - Pepsi ?

82%

18%0%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

70%

18%

12%

Rank 1

Rank 2

Rank 3

82% of the shops having Pepsico. DPS Boards got the rank 1st according to their

visibility status on the other hand 18% of the retailers got the ranks 2nd and nobody

Page 52: Coca Cola ( Consumer Buying Behaviour) (2)

got the 3rd. This shows that retailers who got the DPS Boards as display material

from the company are using them satisfyingly.

70% of the shops having Coca-Cola DPS Boards got the rank 1st according to their

visibility status on the other hand 18% of the retailers got the rank 2nd and only 12%

of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,

Pepsico.’s DPS Boards are being used in far more satisfyingly.

FFIGUREIGURE 5 5

EMBED Excel.Chart.8 \s

25%

37%11%

27%

PBI COCA-COLA BOTH OWN

Out of the sample size, which has been covered 37% % of the shops, had

CocaCola’s refrigerator vis a vis to 25 % of Pepsi’s refrigerator. This shows that

percentage distribution of the refrigerators of Coca-cola co. is more than Pepsico. .

11 % of the sample size had the refrigerator of both the major players of the soft

drink industry.

27% of the sample size didn’t have any of the company’s refrigerators; they are

using their own refrigerators for the chilling purpose.

FIGURE 6FIGURE 6

Ranking according to visibility - Pepsi ?

68%

24%

8%

Rank 1

Rank 2

Rank 3

Ranking according to visibility - Coca Cola ?

33%

67%

0%

Rank 1

Rank 2

Rank 3

Page 53: Coca Cola ( Consumer Buying Behaviour) (2)

68% of the shops having Pepsico. refrigerators got the rank 1st according to their

visibility status on the other hand only 24% of the retailers got the ranks 2nd and 8%

of the retailers got the rank 3rd. This shows that retailers who got the refrigerators as

display material from the company are not using them satisfyingly.

Only 33% of the shops having Coca-Cola refrigerators got the rank 1st according to

their visibility status on the other hand 67% of the retailers got the rank 2nd and none

of the retailers got the rank 3rd. This shows that in comparison to Coca-Cola,

Pepsico.’s refrigerators are being used in far more proper way.

FIGURE 7FIGURE 7

PBI, 4260

Coca-Cola, 3368

0500

1000

1500

2000

2500

3000

3500

4000

4500

PBI Coca-Cola

How many Bottles of PBI/ Coca-Cola do you have in your fridge

PBI

Coca-Cola

FFIGUREIGURE 8 8

Availabity Comparision between Pepsi and Coca-Cola at the Outlets - using Coca-cola Merchandising Asset

PBI56%

Coca-Cola

44% PBICoca-Cola

Page 54: Coca Cola ( Consumer Buying Behaviour) (2)

In the CocaCola’s refrigerators 56% of the Pepsi bottles were found. This shows

that CocaCola’s refrigerators are not being used to optimum by the retailers in

promoting CocaCola’s products.

FFIGUREIGURE 9 9

Reasons for not optimum use of Refrigerator / Ice Box at outlets ?

Shortage 13%

Problem of the Empty bottle

17%

Irregularity of the Salesman

34%

Other36%

Shortage

Problem of the Emptybottle

Irregularity of the Salesman

Other

While giving the reasons for not using the Coca-Cola’s refrigerators 34% of the

retailers blame it to the lack of regular services from the company (irregularity of the

salesman), 17% of the retailers voted to the problem of the empty bottles of

Hindustan Beverages India, 13% voted for the shortage of the different packing.

Despite of all the above reasons a huge segment 36% blame it to different other

reasons for below optimum use of refrigerators.

Out of the 36% other major reasons low demand (33%) and lesser capacity

refrigerators (34%) got the maximum share.

Despite of all the above there are even major number of retailers who blame it to the

unfulfilled promises from the company professionals.

Page 55: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 10 10

FFIGUREIGURE 11 11

Approximate sale of the retailer

0.5 to 28%

3 to 546%

6 to 1028%

More Than 1018%

The sample size shows that maximum portion (around 46 %) of the retailers whose

sale are between 3 to 5 crates daily and only 8 % are the ones who are selling less

that two crates.

Approximate sale of the retailer

0

1020

3040

50

6070

8090

100

0.5 to 2 3 to 5 6 to 10 More Than 10

Page 56: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 12 12

How the retailler gets display material from the company ?

0

10

20

30

40

50

60

70

Schemes Gift Sharing / Draft Other

FFIGUREIGURE 13 13

How the retailler gets display material from the company ?

Schemes33%

Gift 40%

Sharing / Draft 21%

Other6%

The sample size gives us the brief idea about the pattern of distribution of

merchandising assets by the companies. Most of the retailers (around 73%) are

getting the display material through different schemes or as the gifts.

Page 57: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 15 15

This gives us an indication, where the better prospects lies. In which particular type

of packing little innovation can do wonders. This provides us with an idea where we

should concentrate.

The sample size shows that there is huge demand of 2lt pack (26%) and 200ml

bottles (30%).

300ml bottles with 23% shares the 3rd position and 500ml. Shares the 4th position of

the demand total demand with the market demand of 14%

FFIGUREIGURE 16 16

0

100

200

300

400

500

Pepsi Coca-Cola Thums-up

S1

Market Demand of Softdrink ( Cola )

Pepsi

Coca-Cola

Thums-up

Page 58: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 17 17

Market Demand of Softdrink ( Cola )

Pepsi 39%

Coca-Cola37%

Thums-up 24%

Pepsi

Coca-Cola

Thums-up

Sample size shows the comparison between the market demands of each of cola drink.

Pepsi is on the top, shares the demand of 39% from the market. Coca-Cola seconds with the shares of the demand of 39% from the market beating

Thumps up with the remaining 24%

FFIGUREIGURE 18 18

Mirinda-O, 260

Fanta, 285

240

250

260

270

280

290

Mirinda-O Fanta

S1

Market Demand of Softdrink ( Orange )

Page 59: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 19 19

Market Demand of Softdrink ( Orange )

Mirinda-O48%

Fanta52%

Sample size shows the comparison between the market demands of each of Orange

drink.

Mirinda and Fanta are almost head to head with 48% and 52% market demand.

Though Fanta is having 4% more share than Mirinda Orange.

FFIGUREIGURE 20 20

Page 60: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 21 21

Sample size shows the comparison between the market demands of each of Lemon

drinks available in the market

Limca in the lemon flavour with the market demand share of 31% is beating all the

giants.

Pepsi’s two products Mirinda Lemon and Mountain Dew together with the market

demand share of 55% are competing with the Limca.

The new entrant to the market, Mountain Dew is gaining the market share more

dynamically than its competitor brands.

Sprite and 7 up are lacking behind with just the share of 14%.

Page 61: Coca Cola ( Consumer Buying Behaviour) (2)

FFIGUREIGURE 22 22

FFIGUREIGURE 23 23

Market Demand of Softdrink ( Mango )

Slice, 300

Mazza, 290

Sample size shows the comparison between the market demands of each of Mango

drinks available in the market Slice and Mazza is almost head to head with 52% and

48% market demand. Though Slice is having 4% more share than Mazza.

SURVEY REPORT CONDUCTED BY INDIVIDUAL AGENCY:-

FOR THE MONTH MARKSAPRIL 34.5MAY 22.3JUNE 30.1

Page 62: Coca Cola ( Consumer Buying Behaviour) (2)

Coca Cola India has been working on RED (Right Execution Daily) since 2006. In Patna

Region RED was introduced in FEB 2006. RED is an integration of Sales Management &

Marketing Execution Plan. By this, company not only has been increasing its Sales &

Market Shares but it also has proved as a media for the company to come closer to its

Customers & Shoppers.

This case of Coca Cola Company is related to the Patna Region where the company is the

leader in the both the Market Shares & the Sales Volume. After RED was introduced in

Patna, the Company continuously tried to improve its RED Score Card.

Its RED Score Card shown in April 2008, in Patna Region (especially Exhibition Road,

Pirmohani, Goriatoli & New Market) was 34.5% (Approx), which was not near to the

Standard i.e. 50, fixed for the month.

The Standard for the month May was fixed 60 by the Sales Management for this Region.

But the result was negative for this month i.e. 22.3%(approx). The RED Score declined by

63% in this month as it was fixed by sales management.

It put extra pressure on Sales Execution Team to uplift this Score in the month of June. So,

it was the challenge for the Sales Execution Force to regain its prestige but still they didn’t

achieve the minimum Standard of 60% but somehow manage the score 31.1% which was

increased from the previous month.

On the basis of Urge(“ Prefer More Often”)

Page 63: Coca Cola ( Consumer Buying Behaviour) (2)

OPERATING GROUP:-

The Operating Group of Coca-Cola. The map is segmented into Coca Cola Operating

Groups: Africa, Eurasia, European Union, Latin America, North America, Pacific, Bottling

Investments. Certain prior year amounts have been reclassified to conform to the current

year presentation.

5) In 2007, Coca Cola adopted Financial Accounting Standards Board (FASB)

Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" and recorded an

approximate $65 million increase in accrued income taxes in their consolidated balance

sheet for unrecognized tax benefits, which was accounted for as a cumulative effect

adjustment to the January 1, 2007 balance of reinvested earnings.

6) In 2006, Coca Cola adopted Statement of Financial Accounting Standards (SFAS)

No.158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement

Plans -- an amendment of FASB Statements No. 87, 88, 106, and 132(R)."

7) Coca Cola adopted FASB Staff Position (FSP) No. 109-2, "Accounting and Disclosure

Guidance for the Foreign Earnings Repatriation Provision within the American Jobs

Creation Act of 2004" in 2004. FSP No. 109-2 allowed the Company to record the tax

expense associated with the repatriation of foreign earnings in 2005 when the previously

unremitted foreign earnings were actually repatriated.

8) Coca Cola adopted FASB Interpretation No. 46(R), "Consolidation of Variable Interest

Entities," effective April 2, 2004.

DATA COLLECTION AND RELIABILITY OF DATA:-

For this research work there is need of both Primary & Secondary data. Here I have

taken the Primary data which was collected from the Customers.

The secondary data are those, which have already been collected by someone else for

other purpose. The data, which are secondary in the hands of one, may be primary for

others. Here the Secondary data is collected from the company’s R&D department.

Page 64: Coca Cola ( Consumer Buying Behaviour) (2)

ANALYZING THE DATA:-

The next step in the research process is to extract pertinent findings from the data. The

researcher tabulates the data and uses various financial tools to assess the financial

soundness of the company.

Research instrument:-

Researcher used questionnaire as his instrument for conducting the survey.

Sampling Plan

(1) Sampling unit – Retailers

(2) Sampling procedure- Simple Random Sampling Procedure.

Contact Method

Researcher personally contacted the retailers.

Where f = Feed Back (Help in Controlling the Sub System to Which it is transmitted ) Ff = Feed Forward (serves the vital function of providing criteria for evaluation)

MARKETING STRATEGIES:-

1) Coca-Cola sales club:-

This club is for the retailers. In this approach retailers are given some points once in a

month depending upon how they are using the display material provided by the company to

them. This material consists of Fridges, DPS Boards, Glow Sign Boards, Display Bottles

(500ml. 1lt. 2lt, Commodity Packs, Stands, Posters etc. Depending upon these points

retailers are rewarded by certain gifts from the company.

The retailers are participating in these schemes curiously. But few of the retailers found

furious and angry because they had lost the points because of miscommunication or lack of

guidance. Therefore they need some kind of guidance from the company. It would be a

better idea that our salesman who are distributing the beverages to the retailers can be

equipped by the appropriate training so that they can guide the retailers about how to use

their display material to 100% of their strength and able to tell about the new schemes

convincingly.

Page 65: Coca Cola ( Consumer Buying Behaviour) (2)

2) Schemes:-

Hindustan Beverages India comes out with the schemes on their different products many

times in a year. Most of these schemes are made to benefit the retailers. Some of the

schemes are as follows:

1 bottle of 2lt. free with one 2lt bottle pack.

1 bottle of 1lt. free with one 1lt bottle pack.

2 bottles of 500ml free with one 500ml bottle pack.

6 bottles of Kinley free with one pack of Kinley.

These schemes keep on changing depending upon the stock. Beverages companies are

giving these schemes despite of acute shortage of soft drink in every segment to meet the

competition, to make sure the availability their brands and sometimes to satisfy and benefit

the retailers and the end consumers.

3) Advertising:-

Through the consumers survey it has been proved that the T.V. commercials and sinages

affect the consumer buying behaviour by approximately 70%. May be only Cococola. is

investing huge finances in the T.V. commercials and other sinages, big names of Indian film

industries and sports hero’s are being proposed to become the brand promoters and brand

ambassadors. Amir Khan, Akshay Kumar, Hritik Roshan, Riya Sen and more are being

offered huge amount for carrying out the promotions.

Posters

DPS boards

Glow Sign boards

Date calendars

Cinema hall tickets

Radio commercial

4) Promotion through restaurants and cinema hall holdings:-

Page 66: Coca Cola ( Consumer Buying Behaviour) (2)

Coca-cola is tying up with different chains of restaurants and fast food centers to

promote the Coca-cola and its other brands like Limca, Sprite, Maaza etc. these

restaurants are authorized to keep and use the merchandising assets of Pepsi. Usually

these kinds of restaurants and fast food chains are in contract with the Pepsi Co., so

that they cannot promote any other brand.

5) Merchandising assets:-

Coca-Cola also try to promote their brands by providing their retailers and dealers some

display items. Some of such items are as follows:

1. Fridges

2. Coca-Cola/Mazza stands

3. Display bottles

4. Posters 

Coca-Cola provide the above things to the retailers to use them in promoting companies

brands and products, and provide refrigerators to the retailers in the hope that these

retailers only use these assets in promoting the Coca-Cola’s products and they will chill the

Coca-Cola’s products so that its products will always be available to the end consumers.

But it is not true in most of the cases. Retailers usually use the merchandising asset of one

company in such a way that it benefits another company. Sometime they do it unknowingly,

sometimes they do it knowingly and sometimes because of the deficiencies of the company

itself. These deficiencies are as follows: -

1. Irregularity of the salesman to the retailers shop.

2. Shortage of the different products and different packages.

3. Sometimes because of the rude behavior of the salesman.

6) Strengthen distribution network and promotions through word of mouth through

sales man:-

Unlike the rival brand Pepsi, Coca-Cola co.. Basically depends upon its sales man for

promoting and launching the new as well as old brands because instead of doing the

business through dealer’s network like Pepsi, Coca-cola believes in making and

maintaining relations with retailers directly. Therefore salesman is the very important part of

Coca-cola co. marketing strategy.

Page 67: Coca Cola ( Consumer Buying Behaviour) (2)

INTRODUCTION OF REPORT:-

Every year with the start of summers in India the real race to quench the thirst of the

consumers begins in the soft drink beverages industry. Every year millions participate in it,

either in the hot sun or sitting at home watching their, sipping the soft drink and watching

the newly launched advertisements.

Lime n' lemoni Limca:-

Soft drinks manufacturers in India face a number of major problems, such as distribution

difficulties. Access to the 500,000 villages is limited due to the poor road network.

Inconsistent tax policies, the prevalence of duplicates, hefty packaging costs and India's

seasonal nature are other factors holding back growth.

During New Year the two of the largest soft drink giants in India Pepsi and Coca-Cola start

experiments with products, packages, flavors and prices in an effort to boost their market

share. For this the biggies make huge investments in terms of advertising, setting up new

and more productive and modernized plants, improving the distribution network to get better

reach to the end consumer.

One of the areas where these companies are making huge investments is merchandising.

This is the area where companies try to get the maximum display in the consumer’s eyes at

the retailers shop through refrigerators, glow signboards, DPS boards, stands, posters,

display bottles etc. But the question arises that whether these retailers are making the

proper use of these materials, which the company is providing them. Are they using these

materials to their optimum level in promoting the product of the company that has provided

them the

merchandising material? Are the companies getting the optimum results of the investments

they are making in this area?

Researcher have tried to find out answers to the above questions in his research work,

which researcher has conducted during his summer training during the partial fulfillment of

his BBA programme.

Under the Activation, the attention is given to ensure the following points at the purchase point: -

Page 68: Coca Cola ( Consumer Buying Behaviour) (2)

Prices of HCCBPL products communicated in a clear & visible manner.

DPS/Flex Board/Glow Sign Board, Flange, or Road Standee, at least 1, should be in

a proper condition.

Ariel Mobile Hanger with at least 4 mobiles displayed at stores front in Convenience

Stores.

OBM/Drinking Shot Communication present at each store.

Table Top display unit/Hanging Rack, at least 1 should be pure & should be at least

50% charged in Convenience Stores.

Self Display Rack in which minimum 8 facings of any PET displayed & visible in

Grocery.

Rack should be pure & should be at least 50% full in Grocery.

Combo Communication should be present in E&D.

Branded Menu Cards with KO (cola) Beverages Menu (at least 5 Menu Cards)/Menu

Board (at least 1) with KO beverages listing.

ORGANIZATIONAL STRUCTURE :-

Coca Cola in India

Page 69: Coca Cola ( Consumer Buying Behaviour) (2)

SWOT ANALYSIS

Page 70: Coca Cola ( Consumer Buying Behaviour) (2)

6. SWOT ANALYSIS

STRENGTHS:-

Coca Cola competitive strengths include leading brands with a high level of consumer

acceptance, a worldwide network of bottlers & distributors of company products,

sophisticated marketing capabilities; & a talented group of dedicated associates.

Coke Company has a good market reputation and a strong distribution network.

Coke is having a multi brand strategy ad is looking for a great volume opportunity in

India.

Coke is presently no. 1 player in Indian Carbonated soft drinks market.

Coke was born 11 year before Pepsi (in 1987) ad a century later still maintains that

pioneering least.

Pepsi and coke both have good brand image.

WEAKNESS:-

Sales of Coca Cola ready-to-drink nonalcoholic beverages are somewhat seasonal, with

the second & third calendar quarters accounting for highest sales volumes. The volume of

sales in the beverages business may be affected by weather conditions.

Coke has less no. of retailers

Less force - it has less no. Have owned bottling plant.

It has not planned for setting up of any new plants where their competitor has

planned to set up several new plants.

Page 71: Coca Cola ( Consumer Buying Behaviour) (2)

OPPORTUNITY:-

Over the next several years Soft Drinks Industry’s growth is expected to out pace the

growth of the world economy. By 2010 is projected to eclipse $650 billion in total revenue.

There is tremendous opportunity to grow our sparkling beverages in both developed &

emerging markets.

A rapidly growing market, which is expanding @ 205 every year.

It can take the market very well with the new investment of Rs. 2400 corers.

It can give a big jerk to its major competitor Pepsi it can increase its number of

fountain to a sizeable amount.

Increasing trend of cold drink of different brands.

THREATS:-

Coca Cola Company competes in the nonalcoholic beverages segment of the commercial

beverages industry. Based on internally available data & a variety of industry sources, Coca

Cola believe that in 2007, worldwide sales of Company products accounted for

approximately 10% of total worldwide sales of nonalcoholic beverages products. The

nonalcoholic beverages segment of the commercial beverages industry is highly

competitive, consisting of numerous firms.

It has a continuous threat from Pepsi as well as various other local soft drinks.

Coke has a major market than Pepsi between the teenager as well as the student

due to advertisement of world cup cricket.

A large amount of expenses on the advertisement.

There is no proper policy of distributing the merchandising assets of the company to

the retailers.

LIMITATION:-

Page 72: Coca Cola ( Consumer Buying Behaviour) (2)

Despite the possible efforts in conducting the research, there were some unavoidable

situations, which limited the scope of the project.

Considering the population, the sample taken for present study seems small and

hence further investigation may be required.

The sample taken for study was not of equal distribution so a comparative study

cannot be made.

Some of the retailers were non-cooperative in giving information, which hampered

the actual calculation.

Time available for research was very short so certain aspects have been overlooked.

Retailers were hesitant to provide the complete information due to fear of misuse of

information.

Respondents may sometimes misinterpret the questions, leading to a different

answer.

Page 73: Coca Cola ( Consumer Buying Behaviour) (2)

CONCLUSION CONCLUSION

Page 74: Coca Cola ( Consumer Buying Behaviour) (2)

7. CONCLUSION7. CONCLUSION

After conducting the research, Researcher found that there are two categories of retailers.

The first one is of those retailers, which just want to increase their assets, for them the sale

doesn’t matter according to them they can only increase the sale if the company will invest

in them or in their shops. These types of retailers will only work for the company, which

invest in them hugely. And if at any moment they found company has lost or lowered their

interest in them they will again shift to other major player. Other kinds of retailers are those

who are more bothered about working hard and build their reputation in the market. These

types of retailers are using the merchandising assets to their optimum level. And sometimes

if they are unable to do so it’s because of the irregularity of the salesman (when the

salesman on the route gets changed) or because of the shortage of the different

products/packing.

There is a requirement of the company professionals to visit these retailers

continuously. So, that they can understand the market.

Suggest changes accordingly. Despite of this, salesman and other company

professionals who visit these retailers must not do the false promises. Due to this

retailers loose their confidence in the company.

There is also the need of the transparent schemes and marketing mix that the

retailers can understand more properly.

But all these services can be delivered when a company retain its customers and

biggest loophole in retaining customer for Market. And market is the foremost thing

that customer wants.

Page 75: Coca Cola ( Consumer Buying Behaviour) (2)

This case of Coca Cola Company is related to the Patna Region where the company

is the leader in the both the Market Shares & the Sales Volume. After RED was

introduced in Patna, the Company continuously tried to improve its RED Score Card.

Most of the respondents prefer to take the beverage on the basis of taste.

Out of the whole lot of the Coca Cola products most of the people prefer to take

Maaza in Large quantities.

Majority of the people know the beverages of Coca Cola thru advertisements.

It is heartening to notice that the availability of the Coca Cola Product is excellent.

The Coca Cola products are always found in its optimum condition in which it is

expected to be.

It has come to my notice that most of the customers are unsatisfied with the price of

the beverages.

Almost all the respondents take the beverages on the basis of personal judgment.

Also it is good to observe that most of the people are aware of the promotional

schemes offered by the Company.

All the products in the Visicooler are kept in a systematic way(CLOJ).

It has been observed that most of the people visualize the activation boards properly

in front of the Outlets.

Page 76: Coca Cola ( Consumer Buying Behaviour) (2)

RECOMMENDATIONS

&

SUGGESTION

Page 77: Coca Cola ( Consumer Buying Behaviour) (2)

8. RECOMMENDATIONS & SUGGESTIONS

1. Company should do something to meet its demand in the market. Because there is

an acute shortage of Coca-Cola 2Lts party pack and tin pack because of the shortage,

Coca-Cola is not only loosing the present market share but also providing way to the

rivals. For this either plant size can be expanded or some more production equipments

can be installed.

2. Since the market capacity is huge salesman needs time at every retailer to satisfy

him and tell him about the different products, packaging, schemes etc. it’s quite difficult

for him to visit every shop on his route everyday. Therefore, there is necessity to divide

his route into two parts and increase the total number of routes.

3. Sometimes salesman for different routes keeps on changing very frequently (in a

very short period). This should be prohibited because every sales man needs time to

get adjusted to a particular route and even to know all the shops on the route.

4. Salesman is working for 15 to 16 hours regularly during the peak season at very low

reimbursement, which may sometimes kill his interest. Therefore there is a need of

fixing up his working hours. Delivery van should be ready when he comes into the

depot in the morning. There should be different labour for shipping or de-shipping the

delivery vans.

5. Company professions must not make the false promises about the merchandising

assets with the retailers. These retailers must get the proper information and guidance

about the company policies on the merchandising assets. So that there must be no

frustration generated.

6. Though the GSB’s and DPS Boards are being used by the retailers satisfyingly but

still there is need of the guidance for the retailers.

Page 78: Coca Cola ( Consumer Buying Behaviour) (2)

7. Schemes should be transparent and made clear to the retailers.

8. As maximum number of retailers are selling around 3 to 5 crates daily. Our schemes

should be revolving around this percentage only. And while formatting the different

schemes this should be kept in mind.

9. For this salesman can be provided with some kind of guidance/ training, so that they

can clear the queries of the customers about the different schemes/ proposals

10. Retailer benefit schemes, which the company launches time by time during the

whole year, must be made clear to all the retailers.

11. Customers can be informed about the schemes through the broachers.

12. Broachers can be distributed to all the retailers for the schemes that are being

launched once in a year. And for the daily schemes which get change on daily bases

and which depends on the stock availability providing details about the day's schemes/

after a paper/ pamphlet on different products can be sticked to the delivery van signed

by the ASM or anybody authorized. So that every retailer if needed/ required can

verify himself about the daily schemes.

13. Company professionals should visit the field more regularly and they must try to visit

every retailer at least once in a month.

14. A proper trust and relationship building process is required with the retailers, which

need to be worked on.

15. Above figures shows the market demand comparison between the different products

of all the flavors available in the market. Which show that we can gain market share

through Coca-Cola’s Limca and Sprite. So we should concentrate more in completing

the market demand of these products.

16. Above figures shows the market demand comparison between the different packs

available in the market. Which show that we can gain market share through

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concentrating more on 2Lt. and 200ml. pickings. So we should concentrate more in

completing the market demand of these packing

17. Other products and packing like Sprite and 300 ml. Whose demand is going down

require proper attention and strategy.

18. Most of the respondents wants to increase the flavours of the Coca Cola Ionized

beverages as they have been consuming the same flavor over a period of time.

19. Promotion and promotional schemes need to be propagated in the rural areas so as

to tap the unsaid and unclaimed potential of the rural life and habitat.

20. Well, I would advise the Company to reduce the price affixed to each and very of

beverages so that all the classes and categories of the people can have the pleasure

of drinking the Coca Cola product.

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APPENDIX

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9. APPENDIX

Name of the SHOP ______________ Tel No.__________________

ADDRESS _____________________________________________

1 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE GSB DO YOU HAVE?A. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

2 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE DPS BOARD DO YOU HAVE?

A. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

3 OUT OF COCA-COLA AND PEPSI BEVERAGES INDIA LIMITED WHOSE REFRIGERATOR DO YOU HAVE?

A. PEPSI B COCA-COLA C BOTH D NONE

RANKING ACCORDING TO VISIBILITY?

1 2 3

4 HOW MANY BOTTLES OF COCA-COLA DO YOU HAVE IN YOUR FRIDGE?

COCA-COLA __________________ TOTAL ________________

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5 WHAT ARE THE REASONS THAT YOU ARE NOT USING THE REFRIGERATOR / ICE BOX TO ITS FULL STRENGTH? A.SHORTAGE [ ] B. EMPTY PROBLEM [ ]

C . IRREGULARITY OF THE SALESMAN [ ] D. OTHER [ ]

6 APPROXIMATELY HOW MANY CRATES DO YOU SALE?A. 0.5-2 [ ] B. 3-5 [ ] C. 6-10 [ ] D. MORE THAN 10 [ ]

7 HOW DO YOU GET THE DISPLAY MATERIAL FROM THE COMPANY?A. SCHEMES [ ] B GIFT [ ] C SHARING / DRAFT [ ] D OTHER [ ]

8 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?( ) 2 LT. ( ) 1 LT ( ) 500 ML ( ) 300 ML ( ) 200 ML

9 PLEASE RANK THE FOLLOWING ACCORDING TO THE MARKET DEMAND?A. ( ) PEPSI ( ) COCA-COLA ( ) THUMS-UP

1B. ( ) MIRINDA-O ( ) FANTA

C. ( ) MIRINDA –L ( ) LIMCA ( ) MOUNTAIN-DEW ( ) SPRITE

( ) 7-UP

D. ( ) SLICE ( ) MAAZA

Thanks

If you Have Any Suggestion…………………………( )

Signature

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10.BIBLIOGRAPHY

Name of the books used for the reference and their authors.

1). Kotler, Philip, Marketing Management, Delhi, Pearson education Pvt. Ltd.,

2004

2). Kothari, C.R., Research Methodology, New Delhi, Wishwa Prakashan Pvt.

Ltd., 2003,pg.14-26.

Ramaswamy, “Marketing Management”,

Websites Referred:-

http://www.coca-cola.com

www.financialexpress.com

www.businessworld.com

www.cocacolacompany.com

www.cocacolaindia.com

http://www.google.com

MAGAZINES:-

Time Education Magazine

Business Today