the find out the present status of thumps up, coca-cola,

MBA – RETAIL MANAGEMENT

MARKETING STRATEGY OF COCA COLA 1

Chapter 1

Executive Summary



1..EXECUTIVE SUMMARY

Coca-Cola, the product that has given the world its best-known

taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola

Company is the world’s leading manufacturer, marketer and

distributor of non-alcoholic beverage concentrates and syrups,

used to produce nearly 400 beverage brands. It sells beverage

concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. Coca-Cola

was first introduced by John Syth Pemberton, a pharmacist, in the

year 1886 in Atlanta, Georgia when he concocted caramel-colored

syrup in a three legged brass kettle in his backyard. He first

“distributed” the product by carrying it in a jug down the street to

Jacob’s Pharmacy and customers bought the drink for five cents at

the soda fountain. Carbonated water was teamed with the new

syrup, whether by accident or otherwise, producing a drink that

was proclaimed “delicious and refreshing”, a theme that continues

to echo today wherever Coca-Cola is enjoyed. Coca-Cola

originated as a soda fountain beverage in 1886 selling for five

cents a glass. Early growth was impressive, but it was only when a

strong bottling system developed that Coca-Cola became the

world-famous brand it is today. CocaCola was the leading soft

drink brand in India until 1977, when it left rather than reveal its

formula to the Government and reduce its equity stake as required

under the Foreign Regulation Act (FERA) which governed the

operations of foreign companies in India. In the new liberalized and

deregulated environment in 1993, Coca-Cola made its re-entry into

India through its 100% owned subsidiary, HCCBPL, the Indian



bottling arm of the Coca-Cola Company. The main objective of this

study lies in understanding the organization and studying and

understanding the consumers’ perception and opinion about the

latest product, Minute Maid Pulpy Orange, introduced into India, by

the Coca-Cola Company. A consumer sampling involving 5.5 lakh

people was conducted in a span of 30 days across major cities in

order to give the product the required marketing push and to

recognize the prospective consumers and their opinion in order to

develop and market the product in a better way in the near future.

The methodology used in studying and understanding the

perceived views of consumers towards the product was

‘SAMPLING’. The findings of the activity have been drawn out in

form of graphs and suggestions have been offered there from.



CHAPTER -2

OBJECTIVES OF THE STUDY



2..OBJECTIVES OF STUDY

• The find out the present status of Thumps Up, Coca-Cola,

Fanta, Limca & Maaza in the retail outlets.

• To study the distribution and marketing strategy of

thumps up, coca-cola, fanta, limca, and maaza- the

major competitor in this category.

• To study the consumers preferences for Coca Cola.

• To know which brand’s advertisement mostly people have

seen.

• To know the reason to buy cola drinks.



CHAPTER -3

RESEARCH METHODOLOGY



3..RESEARCH METHODOLOGY

This research involved a study, which was descriptive as well as

explorative in nature it basically aims at gathering data about how

the coca-cola scheme playing in the mind of shopkeepers &

consumer.

METHODS OF DATA COLLECTION

THERE ARE TWO TYPES OF DATA

1. Primary data

2. Secondary data

1. Primary data collection : Primary data can be collected by

three methods.

a) Observation

b) Experiment

c) Surveys

But here, only surveys method of data collection is preferred which

is very suitable to reach the researcher motto.

A. Research instrument: Printed Questionnaire was used as the

research instrument to collect the required information.

B. Area of surveys: The survey was conducted in different

location of navi mumbai city.



Sampling plan : sampling plan consists of

I.Sampling unit: The retailer of Grocery shop, general store, betel

shop, and school and colleges student was selected from different

places of NAVI MUMBAI.

II. Sampling size: 80

Were 20 are for retail outlet and

60 are for consumers..

III. Sampling procedure: Simple random sampling procedure

was followed.

IV. Sampling method: Data were collected by retailer survey.

The retailers are directly contacted and interviewed at their retail

counter and with the customer.

2) Secondary data collection :

As secondary data were not available with shopkeepers as well

as stockiest, so these were collected from company records,

books and websites.



CHAPTER 4

REVIEW OF LITERATURE



MARKETING STRATEGY

� Service Quality and Customer Value

--Lester W Johnson and Sean Leonard

The concept of customer value has its roots in the quality

movement, work done in the area of developing "customer

focused" organizations, and in the marketing concept of "market

orientation". This has seen many companies move away from a

production orientation and from the 1980s' fascination with

mergers and acquisitions aimed to deliver market share, to

concepts based on relationship marketing, customer loyalty and

retention, brand equity, and customer equity. The shift has

fundamentally been a move from "product focus" to "customer

focus" and a related shift from "product quality" to "service quality".

While the research still follows different lines, there are useful

lessons to be learned in areas where there is strong agreement.

This article discusses what the past ten years have taught us

about this shift.



� Customizing Price Discounts: A Value-Based Approach

to Marketing Promotions

-- Joseph Johnson

Price discount is an important criterion to attract customers

towards a particular brand. This article describes how to develop a

model that allows firms to make customized temporal discounts.

The model enables managers to decide to whom, when, and how

much discount should be given to a brand in a constrained budget

� Customer Next: Marketing to the Aged

---Sarika Tondon

The world is aging rapidly. The percentage of people in the 60 +

age group is projected to increase from 10% in 1999 to 22% by

2050. The total population in this age group will increase more

than three times over these five decades. Unlike in the past, the

aged population, particularly in the developed countries and even

those in the upper socioeconomic classes in the developing

countries, are no longer dependent on others financially, physically

or emotionally. Many of the elderly are well-to-do, are in fairly good

health (thanks to improved medical facilities) and also have a zest

to enjoy life. This has provided immense opportunities to

marketers, particularly those operating in the fields of healthcare

and health foods; physical fitness and exercise; travel and leisure;

and also media and entertainment, to cash in on this segment's

needs.



� Some New Thoughts on Marketing Strategy

---S N Ghosal

Liberalization and globalization have opened up opportunities to

develop competitive edge and innovative strategies to excel and

survive amidst the fire of intense competition. While the Blue

Ocean strategy offers one possible alternative, the author

suggests a new development strategy to minimize the risks

associated with adopting purely a Blue Ocean approach.

� Competitive Branding Strategies

--Linda Fisher

The article illustrates the five keys that businesses must implement

to be successful: Creating a brand strategy, managing a brand

image through marketing, differentiating from competitors, creating

added value perception for the service marketed and maintaining a

client base while attracting new clients. All these together leverage

the potential of a firm to overcome perils in a competitive economy.



� Taste or health: A study on consumer acceptance of

cola drinks

This study examined the relative contributions of taste and health

considerations on consumer liking and purchase intent of cola

drinks. Eight types of commercial cola drinks were evaluated by

305 adult consumers who also completed a brief questionnaire on

food habits. Data were analyzed using factor analysis. Results

revealed that purchase intent of cola drinks was strongly related to

degree of liking and to several key sensory attributes including

saltiness, drinks flavor and greasiness. These variables emerged

as the first factor in the analysis, suggesting that consumers

perceive these characteristics as being most important in their

choice of cola drinks. Factor 2 described a health dimension and

was related to respondents' attitudes toward fat in the diet. Factor

3 comprised two remaining sensory attributes (color and

crunchiness), which apparently were of minor importance to the

respondents. These data suggest that in spite of current concern

about reducing dietary fat, health remains secondary to taste in the

selection of cola drinks for consumers in this population.

Source-Beverly J. Tepper and Amy C. Trail Journal o f Food

Science and Technology, 15 September 1998



CHAPTER 5

INTRODUCTION TO MARKETING STRTATEGY



5.1 MARKETING

What exactly is marketing? What role does it play in our lives and

of what importance is it to us? To me in the beginning it seemed

like a complicated topic and to the others a dry one, but as I read

on this topic I found that whether we like it or not, we are all a part

of this big game. We cannot escape from it, and at present it is one

of the most happening things in the business industry. We are

usually ignorant about how a product comes to us; we don't give

much thought to it. We merely go to a shop buy the product and

use it. If we study closely we would realize that there's a long

process before a product can be manufactured and after

manufacturing how it finally reaches us. In this talk I would like to

give everyone here a broad idea of how marketing works.

So let's begin with the definition of marketing:

Marketing can be defined as a system of integrated business

activities designed to develop strategies and plans to the

satisfaction of the customer wants.

This can widely be understood as the activities that are required to

get the product in the most efficient way to the customer. This

could lead to the common misconception that marketing means to

sell the product by clever ways or sell them anyhow or at the most

the art of selling. But actually it is something more than that; it is

the art of making the right thing and getting it to the right people in

the right way or the most efficient way. By the end of this talk, once

the areas it deals with are covered, the importance of marketing

will become obvious



5.2 MARKETING MANAGEMENT

Marketing management is the process by which marketing works.

They have certain core concepts to study and follow: 1. Needs and

demands 2.Products 3.Value, cost and satisfaction 4.Exchange

and relationship 5.Market 6.Marketers and marketing.

Let's have a study of each of these concepts briefly.

1. NEEDS AND DEMANDS - this basically implies the consumer

demands. Even before launching a product it is very important to

do a market study and a consumer survey. In big cites where lots

of products and goods are consumed, there are people who go a

door to door inquiring about the products they use. They ask

questions like what brand soap or toothpaste do they use and why.

Supposing on being asked which brand toothpaste they use, the

survey could also contain which color (white or blue) toothpaste

they use. This is called market survey. According to the

information they receive, the company makes appropriate

decisions to change or improve a product.

The needs and demands of products essentially depend on the

place, nature and living style of the people. Like what can be

required in India may not be required in America, and what is

required in America cannot be afforded by Indians.

So every market works differently according to the needs and

demands of its people. The ways to find out customer demands

are either through practical questioning or through the study of

sales. Study of sales is done by plainly observing the volume of a

certain product sold (white toothpaste or blue toothpaste) over the



past weeks or months and accordingly increase or decrease the

production of the certain product.

The better a company understands its people, their psychology,

their financial capacity, the better they can serve the customer to

his satisfaction. Unlike earlier, it is now the buyer's market,

therefore the demands of the customers are of ultimate

importance. The attitude of the market is now not as relaxed as it

used to be, now they want to serve the customer.

2. PRODUCT - product is itself the central unit of the entire

marketing system. Without the product this whole chain of

distribution would not have been necessary. For any product to

last in the market its quality must be high and the price reasonable.

If any product does not work in the market at all one of the reason

could be that the market survey has been insufficient in which case

it does not satisfy the needs of the customers.

The other reason could be that the quality is low in order to make it

a low cost product or if the quality drops with time. In such a case,

due to its name the product will sell while but sooner or later its

sales rate will drop. The third and most dangerous for the

cessation of demand of a product is competition. If the competitive

item is superior in quality and more affordable, it can result in the

failure of a long-standing product. Therefore every manufacturer

and the marketer have to always be alert, lest another product

takes over the market. They need to always come up wit

interesting schemes that can tempt the public.



A product is not necessarily an object; it can also be a scheme, an

exchange offer, a holiday trip or even an idea. All these things can

be referred to as products.

From the sales volume observed, the products sales go through a

typical pattern in most cases. Every product moves through a life-

cycle of 5 stages. Every stage and its duration may vary according

to products.

1. Introduction: This is the period when the product is getting

known, and introduced in the market through various methods.

This first impact that is laid on the market and public are very

important and play an essential role in the success of a product.

When the companies promote it well through a lot of advertising

and publicizing, then the product starts of well. But ultimately the

product's performance designates its real success.

2. Growth: This s the phase when the product is accepted by the

consumers and traders. If the traders and distributors feel

convinced about its success they welcome the product. In this

phase good and substantial advertising and marketing leads to

more profit.

3. Maturity: In this stage the product faces competitions. It has to

fight with big and established companies, it becomes a tough up-

hill path. Here their advertisements often depict modesty which

attempts to touch the public and don't reveal about their product

much but rather indicate about it subtly. The manufacturers have

to spend extra time, energy and money to modify their product for

improvement.



4. Saturation: This occurs when the product is settled in the market

and is being consumed by people. There are only replacement

sales; replacement sales would mean, I would buy a soap or a

toothpaste only if I am on the verge of finishing one, it is not that I

would like to go on stocking soaps or toothpastes in my house.

Here the prices begin to fall to keep the people going and

rejuvenate their interest in their product. Now the profit margin

becomes inevitably very low.

5. Decline: Once the saturation point has reached its peak, the

product inevitably enters the decline stage. The sales drop, the

competition becomes strenuous; the value of the product slowly

drops with time in the market. The companies often cannot afford

to keep spending on advertising, thus the product declines and

gradually disappears from the market.

FIG : A



3. VALUE, COST AND SATISFACTION-

These 3 share a rapport amongst themselves. When a customer

chooses a certain product he has to take into consideration all the

three.

Let's take an example to illustrate this stage: X works in an office

which is 5kms, from his home, he has to travel everyday from his

house to reach his office. X has several options in front of him as

choice of transport: bicycle, motorbike, car, taxi, bus. This is called

the product choice set. Now he has to judge what is of maximum

value, the transport facility which is most economical and which

will satisfy his needs. Value is a subjective thing which every

individual chooses for himself. If X wants something which is very

economical then he would choose a bicycle, which is less safe,

more effortful and as well as very slow.

If X wants speed then he would choose a car. Now X has to see

whether he can afford a car or no, because a car costs much more

than any of the options available and also maintaining it after

buying, so he has to consider the cost.

So, now we can see the concept of value, cost and satisfaction.



4. EXCHANGE AND RELATIONSHIP-

Marketing takes place when people decide to satisfy their need

through exchange. When there are 2 parties and one has

something which is of use to the other, then there is an exchange.

In globalization most often there are tie-ups, this is a form of

exchange and also securing a safe relationship. When the Honda

Company which had become successful in Japan, it then wanted

to expand and globalize, so it ventured into countries like United

States, Singapore and also India. It tied up with the partner of then

existent company: Hero, and formed Hero Honda. Their successful

tie-up resulted in the benefit of both companies. Honda ventured

into world market while hero got a better boost with its help. At

present this company has sold over 14 million vehicles all over the

world. The same thing can be said about the Maruthi Company

which got tied up with the Suzuki Company forming Maruthi

Suzuki, in India they are the largest selling automobile company.

Thus exchange done with good partners can be of great help. If

one party is seeking exchange more than the other party, we will

call him marketer and the other party the party the prospect.



5. MARKET-

Market is the place or lieu where exchange and business takes

place. It is the ground for the selling and buying. The study of the

market is essential for the launching and the success of any

product. In this, statistics plays a great role. For keeping track of

sales, profit during years, statistical comparisons can help the

company to make faster and logical decisions quickly.

The market is something very uncertain and inconsistent. Some

product may do well today and may be very well of the market the

very next. To be successful one has to keep track and move with

the need of the market.

6. MARKETING AND MARKETERS- The skill of making the right

things, making them rightly available to the right people. It is the

human activity taking place in relation to market, getting the

knowledge and information to people by various means. The

people who are part of decision making are the managers and the

marketers; they know how and where the product will be most

consumed. Their prime worries are: quality, pricing, packaging,

branding and publicizing. We'll go into the details a little later to

see how important these can prove.

Pricing: It is essentially the thing of interest since it generates

revenue or income, it has to be done tactfully in order to not

disappoint the crowd and yet make a profit. Economists define

price as the exchange value of a product or service through the

medium of money. Any change of price strikes the customer

immediately and makes him curious for the reasons, whether less



or more, he gets suspicious. He dislikes the idea of paying extra,

and doubts the success of the product if the price falls.

Pricing label expresses the value of a product. An exchange of

goods can take place only if the buyer and seller agree on a price.

The price of any product is likely to vary depending on the

condition of the market and demands.

Some label their products very high to show that they are of a

higher class, and the other products of the same type are forced to

quote as high as the others so that the customers value their

products also and don't doubt their product.

At the planning and decision making level, much thought has to be

given to appropriate pricing.



5.3 MARKETING MIX

Marketing Mix is the method used for executing the important

decisions that have been taken. Particular targets are set and the

planning to work towards them to attain the target is called the

marketing mix. This is comprised of 4 main elements: Product Mix,

Price Mix, Distribution Mix and Promotion Mix. Each of these

elements are an entire area by itself and comprise of smaller

components.

Product Mix: as we have seen earlier, the product is the central

unit of our entire marketing process. In the product mix, the main

decisions that determine the product are taken.

One of the main components is service after sale; this is an

important part of the sale of a product because it can determine

your opinion about a particular company. As long as the guarantee

period of a product lasts, it is the duty of the company to serve you

until you are satisfied. At times, irrespective of the warrantee

period, when the company gives you good service after your

purchase, your opinion and esteem for the product is automatically

raised, and you are likely to spread your good experience around

you, which serves the company as an advertisement or a

promoting system. Their good service proves that they actually

care to give you the best, and not just sell their product in nay

condition.



The other thing that falls under the product mix is brand. This

again has something to add to the success of a product the brand

name identifies a product in the eye of the consumer. It also

simultaneously makes itself unique by its name showing that it

stands or can be recognized by a certain particular name. if the

brand name is catchy and wee chosen it can help immensely in

advertising and promoting the product. Once the brand name

clicks and catches people's attention, it becomes part of their

active vocabulary even without revealing it. The best example is:

what we call Scotch tape is not the exact word for it, it is actually

called cellophane but now the common word for it now has

become scotch tape. The other examples are the use of the words:

Band-Aid, Fiberglass, and Velcro.

There is an interesting example of how a brand name becoming a

part of the people's active vocabulary: in Indonesia the auto-

rickshaws are made by the Bajaj Company like the Indian ones. So

there instead of calling for an "auto" they call for a "bajaj", unlike in

India we call them simply "autos".

Often the brand of a certain product that breaks through the

market is remembered and referred to later on, and it is does not

have to be only a brand, it can be something which happens in day

to day life also.:



Like for example:

Who stepped first on the moon?

Everybody would know the answer…Neil Armstrong.

But now if I were to ask you who was the second to step to step on

the moon?

Oops! Not many people would remember the answer to that!

Packaging is another part handled by the product mix; packaging

not only determines the look of the product but also protects its

quality. Good appearance given to a product attracts the public's

attention.

As far as the practical part of packaging is concerned, we would

have generally noticed that foreign or imported goods are always

better packed than Indian ones, especially in food products, at

least they seem to. This can affect the reputation of a company in

a good or a bad way.

So, these are the things handled by the product mix as under

marketing mix.



� DISTRIBUTION MIX

Distribution mix is the delivery and distribution of a product.

Delivery must be done in the safest possible way in order to not

damage the product and also not add to the cost of the product.

The products need to be appropriately distributed in order to serve

the places where it would be most in demand. The distributors who

take charge of this activity, study and know how exactly spread the

goods in order that they sell the best. In this transportation affects

the price of a product in a big way. We would have noticed this

when the moment the price of petrol or diesel increases, the price

of certain product also increases.

The main products which are immediately are the raw material

products, especially the vegetable prices soar up immensely. On a

normal day a kilo of tomatoes would cost around 7 rupees, and

after the hike in the fuel the price goes up to as much as 20

rupees. And when the fuel prices increase too much, then there

are immediately transport strikes, a very common site in India.

Transport costs have to be always kept at the minimal. To avoid

extra expenditure, trucks transporting goods avoid the express

roads in order to avoid the toll. Efficient distribution of a product

can play a big role in its success by getting the product at the right

time to right people at the time of their need.



� PRICE MIX

Price determines the value of a product as already seen earlier.

So, deciding and fixing any price for a product is very important in

order that the product gets the required profit as well as is

affordable.

Keeping attractive discounts often seems to help. When a stock

clearance is needed, big posters are put up to announce the

discounts. As soon as the word 'sale' strikes our eyes, we are

attracted to at least 'see' what is offered and then the tactful

salesman tries his best to make us purchase something.

Another trick applied in discounts is 'up to 70% off'. So we go to

the shop looking foe the thing which is 70% off, but we never find

anything of that sort and finally end up buying something which

has only 15% off.

These days very often we hear 'bilkul muft', but before getting into

the temptation one should wait and think that nobody is waiting to

give free products, so it means that there is much more to it than

we can actually see.



� PROMOTION MIX

Promotion mix contains publicity, advertising, public relations and

demonstrations. Advertising and publicity is a vast topic and can

be itself treated as a subject, so I'll come to it a little later.

Public relation with the customers has gained importance unlike

earlier when the customers were hardly cared about.

Live demonstrations in public places like shopping malls and public

places tend to attract many people; in Pondicherry we see many of

them in Grinde and Nilgiris. Some are entertained by these

demonstrations and some are also convinced by them. Because

these demonstrations are more convincing to the customers

because they can virtually see what is happening instead of

reading about it or being told about it.

Here I would like to give an incident which happened to me. Once

me and my friend went to Nilgris, there outside a man had put up a

small demonstration. He was trying to sell packed sausages, which

once bought had to be just fried and then could be eaten without

any unnecessary ingredients. To convince the people he had fried

some sausages and he even let us taste them. We liked it and

bought a packet. You could say that this is a one time profit, but

we bought this product several times after that.

So, now having covered the 4 important mixes, namely Product

Mix, Distribution Mix, Price Mix and Promotion Mix, make up the

whole of Marketing Mix. This mix is expected to provide maximum

customer satisfaction if used and executed well.



5.4 TECHINQUES OF MARKETING

This section covers advertising, media politics, public policies,

market study and research.

Advertising is the most powerful tool for promotion. It is generally

carried through media: newspapers, radio, magazines, posters and

the most television. Nowadays advertising is no more a tool but an

industry but itself.

We would have noticed that 10 years back we were surprised to

see when ads were introduced 2 serials or just before the News.

Then it gradually grew and we started having ads in the middle of

the serials. And at present, the ads take up as much time as 50%

of the serial time. In cricket, ads are shown between the overs

which are as long as the overs themselves. Earlier when ads were

shown in between serials, we could easily switch over to another

channel, but in these days they are very cleverly put in order that

we don't miss them.

Often we see ads coming up in the middle of the scenes or just

before the climax or just before a song in the movies. In cricket the

replay of a fantastic shot or a good wicket is shown only after a few

advertisements.

Nowadays in cricket and in private cable channels we would see

ads at the bottom of the screen and below that more ads scrolling

to the left, we have no other option but to look at them.



We at times wonder whether these companies really make a profit

because the expenses of putting up these ads are very high.

When you have special shows telecasted, every second of the ad

costs a fabulous amount. During the Oscars this year, each 40

second was quoted as 1.6 million $.

A few years back in 2001 in Doordarshan every 10 second as was

quoted from 80,000 rupees to 1,40,000 rupees, depending on the

time of the ad to be telecasted. And on special days like New

Years or Christmas or a cricket match involving India, the rates

could go up to 3,20,000 rupees.

The fact that the companies are willing to spend so much implies

that it must certainly be helping them. What in fact happens is that

when the ad and its message keep on going in front of eyes, it

enters into us subconsciously. The advertisers basically rub it into

us, so that next time we go to the market we are reminded of this

ad and we feel like trying out this product.

Slogans play an important role, catchy slogans helps the public to

capture and attract them towards their product. These are mainly

targeted for the family oriented people and the teenagers. When

you hear something like 'Yeh dil maange more' or 'Desh ki

dhadkan' or 'Tomorrow is mine' or ' Believe in the best', you feel a

king of surge in you. So you think by drinking a Pepsi, or riding a

Hero Honda vehicle, or wearing a Reebok shoes or watching your

favorite serial on BPL will satisfy this surge. So you go ahead and

buy this product…these marketing techniques are subtle ways but

are directly targeted towards us to buy this products.



In the television advertisements another attraction is to bring in film

stars and popular sports stars. Most of the public looks up to them

in awe and treat them as demi-gods, so whatever products those

stars use attracts the public's attention easily.

Most of us know that these stars have no authority on the matters

they are advertising; surely Sachin Tendulkar doesn’t know much

about the substances that go in the MRF tires or does Shah Rukh

Khan know much difference between the mileage of a Santro Xing

or his own Mercedes, but yet each one of them speaks with full

authority on these matters and we are tempted to believe them.

Each of these celebrities are paid a huge amount for these

ads…Sachin Tendulakar gets paid around 1.5 crores to 2 crores

for these. The cost spent in popular stars works magic and costs

formidable amounts.

A good example to show this magic which used these stars is the

Pepsi Company which profited by a huge amount. Coca-cola in the

late 50's outsold Pepsi by 10 to 2, which means that for every 10

bottles Coke sold Pepsi sold only 2. Coke had got into the people's

mind and had already built up a powerful position, so now what

could Pepsi do against such a strong rival?

Pepsi took a big risk, it started to target the teenagers as Coke as

targeting the adults; so Pepsi brought in stars like: Michael

Jackson, Lionel Richie (both famous singers). And in India it

brought in Sachin Tendulakar, Vinod Kambli, and Mohammad

Azzarudin. Even though Pepsi's target was the teenage market,

the market was everybody's. A 50 year old guy who wanted to



think that he was all young and a chill out guy like the people he

sees on the screen would think that by drinking a Pepsi he would

convince himself as well as the others that he is very young. After

all everyone likes to be young and be a 'mast' guy!!

Within one generation, Pepsi covered this gap by a huge margin.

Now Pepsi is just behind Coke, every 10 bottles Coke sells now

Pepsi sells 9 bottles. And in supermarkets and eateries Pepsi

easily outsells Coke by a sufficiently big margin.

These days some of the ads give just the minimal information, they

just show one striking sentence or a small part of the ad, this

makes the public wonder what it is about or wait for the rest of the

advertisement. This technique is used in publicity of films, actors

and songs are shown but no the name of the films, this keeps the

public's interest constant.

Some of the companies do crazy things just to make money and

promote their gods. In the cricket World Cup held this year in

South Africa, Castrol a non-Indian oil company started selling

music albums in the praise of our Indian cricketers as well as our

own Motherland, the result…this scheme obviously didn't work out.

Hutch a mobile company started showing cricket matches on the

mobile's screen and 5 star hotels named their menus and recipes

after some the Indian cricketers.

Statistic report says that the advertisements expenditures had

gone up by 250% compared to last World Cup held in 2000 in

England, it is amounted to something like 800 crores.



We can quite clearly how some of the companies spend so much

money on advertising, but does anyone stop to think and ask who

is paying for all this expenditure and yet helping them to make a

profit? The answer is plain and simple: it is us, the customers, and

the public. It is we who are paying for this lavish campaign. A

product costs up to 30% more to cover up this expenditure. It

would be better from the customer's point of view if the ads

provided only information and avoid the extra glamour. But then, it

wouldn't attract our attention, therefore this whole drama is

necessary so that we see these ads. This industry proves to be

succeeding in its endeavors and throbbing with possibilities and

innovation.

There can be quite a bit of dirty corruption involved in media

advertising like some companies and industries buy up a

newspaper company for example. If a company buys an entire

paper, that paper continuously prints positive comments and

opinions on the company. This of course affects common man's

understanding and he is really pulled towards that product.

Around 4,050 crores are spent every year in print media, which

includes newspapers, all magazines, posters, and any other kind

of advertisements on printed paper. And these 4,050 crores are in

India alone.



A marketer as I have already said earlier needs to study the

market and how to make the product. For this research and

speculation he needs market information. Only with the information

can he know the market conditions, requirements and his

competitors. So, information technology plays a decisive role in

market study. Various reporting systems and data processing units

are used for this purpose. Mass communication has become very

useful with the help of information by which problems are

recognized, defined, and solved. These days through the help of

computers it is easier to get a broad view of the market and one's

own state of sales. They run different types of simulations to see

how the market may vary.

When Coke around 10 to 1 years back wanted to bring out another

soft drink called New Coke - it did a research over 2 years and did

over 200 000 taste tests and totally spent over 4 million dollars.

This surely is no joke, so we can see how much some companies

are willing to spend in their researches.

These days marketers are expected to anticipate the changes in

the market, to understand their risks, opportunities and what

strategies to use. They forecast what can happen in the market

accordingly alter and modify their product. Separate organizations

and departments are set up to collect and analyze and evaluate

relevant information.



5.5 WHAT CAN AFFECT THE MARKET

As of now, we have seen how marketers work, what strategies

they apply, what tricks they use. Outside of their field of action,

there are several issues that can affect the market itself. When

certain thins affect the market suddenly, no amount of research

can help. Let us see broadly what can gradually or suddenly affect

the market.

� POPULATION:

The study of population structure and process is called

demography, is an important factor, there are 4 main variables. In

the study, namely size, age, sex, distribution need to be studied. A

sudden growth in the population can shake the market foundation

with overflowing demands. This does not happen all of a sudden,

but if the physical distribution of population changed, it would

certainly affect the market. The food and cloth industry rely heavily

on this demography study.

To take India's example, with a population of over a billion we are

potentially the largest market. Increasing population would in itself

mean a growth in the market.



Another are that is covered in the population study is also the

status. Since 40% of the Indians are below poverty line, the market

has to move in such a way as to protect the interest of all the

people.

Large families usually spend on necessities whereas small ones

can afford to spend on comforts and luxuries. So, demography

study helps direct the market, and sudden changes can affect a lot

in the market.

� WARS:

Wars naturally can affect the market. There's no active promotion

done and luxuries never sell. Not only is it a time of emotional

trauma but also the loss of many lives and money. A sudden

declaration of war brings all the speculation to a naught. The

country is forced to spend on its defense and cannot afford

imports. The cessation of imports and exports affects any market

in a big way and the market research proves no good. So, this

brings an upturn in the market and all industries are affected.



� NATRUAL CALAMITIES:

These are not predictable and can up turn the market totally.

Obviously in a flood stricken area no one's going to buy Coke or

Pepsi. It's very unfortunate and these can do irreparable damage

to human lives as well as the market.

These are some of the main things that affect the market, and then

obviously there can be political misbalance, corruption, revolutions

that can have an important hand.

� CONCLUSION

I would like to conclude by saying that now it's the buyer's market

unlike earlier, the attitude of manufacturers and marketers have

changed immensely. Marketing for a product has become

essential due to competition. in this fast moving world of exchange,

where business has become the method of working, it's still up to

each individual whether or not to get carried away into this rat

race. But at this moment, whether we like it or not marketing is a

part of our lives from which we have no practical escape.



5.6 CONCEPT OF STRATEGY

INTRODUCTION

The top management of an organization is concerned with

selection of a course of action from among different alternatives to

meet the organizational objectives. The process by which

objectives are formulated and achieved is known as strategic

management and strategy act as the means to achieve the

objective. Strategy is the grand design or an overall ‘plan’ which an

organization chooses in order to move or react towards the set

objectives by using its resources. Strategies most often devote a

general programme of action and an implied deployment of

emphasis and resources to attain comprehensive objectives. An

organization is considered efficient and operationally effective if it

is characterized by coordination between objectives and

strategies. There has to be integration of the parts into a whole.

Strategy helps the organization to meet its uncertain situations with

due diligence. Without a strategy, the organization is like a ship

without a rudder. It is like a tramp, which has no particular

destination to go to. Without an appropriate strategy effectively

implemented, the future is always dark and hence, more are the

chances of business failure.



� MEANING OF STRATEGY

The word ‘strategy’ has entered in the field of management from

military where it refers to apply the forces against an enemy to win

a war. Originally, the word strategy has been derived from Greek

‘strategos’ which means generalship. The word was used first time

around 400 BC. The word strategy means the art of the general to

fight in war.

The dictionary meaning of strategy is, “the art of so moving or

disposing the instrument of warfare as to impose upon enemy, the

place time and conditions for fighting by one self.”

In management, the concept of strategy is taken in more broader

terms. According Glueck, “Strategy is the unified, comprehensive

and integrated plan that relates the strategic advantage of the firm

to the challenges of the environment and is designed to ensure

that basic objectives of the enterprise are achieved through proper

implementation process.”

It lays stress on the following:

a. Unified comprehensive and integrated plan.

b. Strategic advantage is related to challenges of environment.

c. Proper implementation ensures achievement of basic

objectives.



� NATURE OF STRATEGY

Based on the above definitions, we can understand the nature of

strategy. A few aspects regarding nature of strategy is a follows:

• Strategy is a major course of action through which an

organization relates itself to its environment particularly the

external factors to facilitate all actions involved in meeting the

objective of the organization.

• Strategy is the blend of internal and external factors. To meet

the opportunities and threats provided by the external factors,

internal factors are matched with them.

• Strategy is the combination of actions aimed to meet a

particular condition, to solve certain problems or to achieve a

desirable end. The actions are different for different situations.

• Due to its dependence on environmental variables, strategy

may involve a contradictory action. An organization may take

contradictory actions either simultaneously or with a gap of time.

For example, a firm is engaged in closing down of some of its

business and at the same time expanding some.

• Strategy is future oriented. Strategy actions are required for

new situations which have not arisen before in the past.

• Strategy requires some systems and norms for its efficient

adoption in any organization.

• Strategy provides overall framework for guiding enterprise

thinking and action.



� STRATEGY V/S POLICIES AND TACTICS

In this subsection, the concept of strategy is compared with

concept of policies and tactics.

STRATEGY V/S POLICIES

Strategy has often been used as a synonym of policy. However,

both are different and should not be used interchangeably.

Policy is the guideline for decisions and actions on the part of

subordinates. It is a general statement of understanding made for

achievement of objectives. Policies are statements or a commonly

accepted understandings of decision making. They are thought

oriented. Power is delegated to the subordinates for

implementation of policies. In general terms, policy is concerned

with course of action chosen for the fulfillment of the set objectives.

It is an overall guide that governs and controls managerial actions.

Policies may be general or specific, organizational or functional,

written or implied. They should be clear and consistent. Policies

have to be integrated so that strategy is implemented successfully

and effectively. For example, when the performance of two

employees is similar, the promotion policy may require the

promotion of the senior employee and hence he would be eligible

for promotion.

Strategies on the other hand are concerned with the direction in

which human and physical resources are deployed and applied in

order to maximize the chances of achieving organizational

objectives in the face of environmental variable. Strategies are



specific actions suggested to achieve the objectives. Strategies

are action oriented and everyone in the organization are

empowered to implement them. Strategy cannot be delegated

downward because it may require last minute decisions.

Strategies and polices both are the means towards the end. In

other words, both are directed towards meeting organizational

objectives. Strategy is a rule for making decision while policy is

contingent decision.

STRATEGY V/S TACTICS

Strategies are on one end of the organizational decisions spectrum

while tactics lie on the other end.

A few points of distinction between the two are as follows:

(i) Strategy determines the major plans to be undertaken while

tactics is the means by which previously determined plans are

executed.

(ii) The basic goal of strategy according to military science is to

break the will of the army, deprive the enemy of the means to fight,

occupy his territory, destroy or obtain control of his resources or

make him surrender. The goal of tactics is to achieve success in a

given action and this forms one part of a group of related military

action.

(iii) Tactics decisions can be delegated to all the levels of an

organization while strategic decisions can not be delegated too low

in the organization. The authority is not delegated below the levels

than those which possess the perspective required for taking

decisions effectively.



(iv) Strategy is formulated in both a continuous as well as irregular

manner. The decisions are taken on the basis of opportunities,

new ideas etc. Tactics is determined on a periodic basis by various

organizations. A fixed time table may be made for following tactics.

(v) Strategy has a long term perspective and occasionally it may

have a short term duration. Thus, the time horizon in terms of

strategy is flexible but in case of tactics, it is short run and definite.

(vi) The decisions taken as part of strategy formulation and

implementation have a high element of uncertainty and are taken

under the conditions of partial ignorance. In contrast tactical

decisions are more certain as they work upon the framework set

by the strategy. So the evaluation of strategy is difficult than the

evaluation of tactics.

(vii) The formulation of strategy is affected considerably by the

personal values of the person involved in the process but the same

is not the case in tactics implementation.

(viii) Strategies are the most important factor of organization

because they decide the future course of action for organization as

a whole. On the other hand tactics are of less importance because

they are concerned with specific part of the organization.



� IMPORTANCE OF STRATEGY

With the increase in the pressure of external threats, companies

have to make clearer strategies and implement them effectively so

as to survive. There have been companies like Martin Burn,

Jessops etc. that have completely become extinct and some

companies which were not existing before they have become the

market leaders like Reliance, Infosys, Technologies etc. The basic

factor responsible for differentiation has not been governmental

policies, infrastructure or labour relations but the type of strategic

thinking that different companies have shown in conducting the

business.

Strategy provides various benefits to its users:

• Strategy helps an organization to take decisions on long

range forecasts.

• It allows the firm to deal with a new trend and meet

competition in a effective manner.

• With the help of strategy, the management becomes flexible

to meet unanticipated future changes.

• Efficient strategy formation and implementation result into

financial benefits to the organization in the form of increased

profits.

• Strategy provides focus in terms of organizational objectives

and thus provides clarity of direction for achieving the objectives.

• Organizational effectiveness is ensured with effective

implementation of the strategy.

• Strategy contributes towards organizational effectiveness by

providing satisfaction to the personnel.



• It gets managers into the habit of thinking and thus makes

them, proactive and more conscious of their environments.

• It provides motivation to employees as it pave the way for

them to shape their work in the context of shared corporate goals

and ultimately they work for the achievement of these goals.

• Strategy formulation & implementation gives an opportunity

to the management to involve different levels of management in

the process.

• It improves corporate communication, coordination and

allocation of resources.

With all the benefits listed above, it is quite clear that strategy

forms an integral part of an organization and is the means to

achieve the end in an efficient and effective manner



5.7 PRICING-INTRODUCTION

Setting the right price is an important part of effective marketing. It

is the only part of the marketing mix that generates revenue

(product, promotion and place are all about marketing costs).

Price is also the marketing variable that can be changed most

quickly, perhaps in response to a competitor price change.

Put simply, price is the amount of money or goods for which a

thing is bought or sold.

The price of a product may be seen as a financial expression of

the value of that product.

For a consumer, price is the monetary expression of the value to

be enjoyed/benefits of purchasing a product, as compared with

other available items.

A customer’s motivation to purchase a product comes firstly from a

need and a want: e.g.

• Need: "I need to eat

• Want: I would like to go out for a meal tonight")

The second motivation comes from a perception of the value of a

product in satisfying that need/want (e.g. "I really fancy a

McDonalds").

The perception of the value of a product varies from customer to

customer, because perceptions of benefits and costs vary.

Perceived benefits are often largely dependent on personal taste

(e.g. spicy versus sweet, or green versus blue).



� IMPORTANCE OF PRICING

When marketers talk about what they do as part of their

responsibilities for marketing products, the tasks associated with

setting price are often not at the top of the list. Marketers are

much more likely to discuss their activities related to promotion,

product development, market research and other tasks that are

viewed as the more interesting and exciting parts of the job.

Yet pricing decisions can have important consequences for the

marketing organization and the attention given by the marketer to

pricing is just as important as the attention given to more

recognizable marketing activities. Some reasons pricing is

important include:

• Most Flexible Marketing Mix Variable – For marketers

price is the most adjustable of all marketing decisions. Unlike

product and distribution decisions, which can take months or years

to change, or some forms of promotion which can be time

consuming to alter (e.g., television advertisement), price can be

changed very rapidly. The flexibility of pricing decisions is

particularly important in times when the marketer seeks to quickly

stimulate demand or respond to competitor price actions.

• Setting the Right Price – Pricing decisions made hastily

without sufficient research, analysis, and strategic evaluation can

lead to the marketing organization losing revenue. Prices set too

low may mean the company is missing out on additional profits

that could be earned if the target market is willing to spend more to

acquire the product. Additionally, attempts to raise an initially low

priced product to a higher price may be met by customer

resistance as they may feel the marketer is attempting to take



advantage of their customers. Prices set too high can also impact

revenue as it prevents interested customers from purchasing the

product. Setting the right price level often takes considerable

market knowledge and, especially with new products, testing of

different pricing options.

• Trigger of First Impressions - Often times customers’

perception of a product is formed as soon as they learn the price,

such as when a product is first seen when walking down the aisle

of a store. While the final decision to make a purchase may be

based on the value offered by the entire marketing offering (i.e.,

entire product), it is possible the customer will not evaluate a

marketer’s product at all based on price alone. It is important for

marketers to know if customers are more likely to dismiss a

product when all they know is its price. If so, pricing may become

the most important of all marketing decisions if it can be shown

that customers are avoiding learning more about the product

because of the price.

• Important Part of Sales Promotion – Many times price

adjustments is part of sales promotions that lower price for a short

term to stimulate interest in the product. However, as we noted in

our discussion of promotional pricing in Part: 15: Sales Promotion

tutorial, marketers must guard against the temptation to adjust

prices too frequently since continually increasing and decreasing

price can lead customers to be conditioned to anticipate price

reductions and, consequently, withhold purchase until the price

reduction occurs again.



� PRICING-INFLUENCES ON PRICING POLICY

The factors that businesses must consider in determining pricing

policy can be summarized in four categories:

(1) Costs

In order to make a profit, a business should ensure that its

products are priced above their total average cost. In the short-

term, it may be acceptable to price below total cost if this price

exceeds the marginal cost of production – so that the sale still

produces a positive contribution to fixed costs.

(2) Competitors

If the business is a monopolist, then it can set any price. At the

other extreme, if a firm operates under conditions of perfect

competition, it has no choice and must accept the market price.

The reality is usually somewhere in between. In such cases the

chosen price needs to be very carefully considered relative to

those of close competitors.

(3) Customers

Consideration of customer expectations about price must be

addressed. Ideally, a business should attempt to quantify its

demand curve to estimate what volume of sales will be achieved at

given prices



(4) Business Objectives

Possible pricing objectives include:

• To maximize profits

• To achieve a target return on investment

• To achieve a target sales figure

• To achieve a target market share

• To match the competition, rather than lead the market

� PRICE ADJUSTMENT STRATEGIES

A company usually adjusts their basic prices to account for various

customers’ differences and changing situations. Here we examine

the six price adjustment strategies.

1) Discount & Allowance : reduced prices to reward customer

responses such as paying early or promoting the product. (For

example. Different seasonal or occasional offers of Nike or Chen

one offering certain discount on different range of shopping)

2) Discriminatory : adjusting prices to allow for differences in

customers, products, and locations (for example. Price of Pepsi in

Pearl Continental Hotel as it is much higher than its actual value in

the hotel just because of the segment and environmental change

in this case the cost is the same but according to the segment

pricing is different)



3) Psychological : adjusting prices for psychological effects. Ex:

$299 vs. $300 (for example. English toothpaste reduced its prices

from 12 to 10 just to attract their customers and increase their

sales in this way they implemented physiological pricing strategy

besides that different offers in the market pricing like just 99

rupees or 999 rupees in various stores is also physiological pricing

strategy.)

4) Value : adjusting prices to offer the right combination of quality

and service at a fair price. (For example a person shopping in

Zainab market might seek value and quality at fair price. This

process helps to deliver value and satisfaction to customers.)

5) Promotional : temporarily reducing prices to increase short-run

sales. (For example. Pepsi reduces its prices during the month of

Ramadan and also offers different schemes and similarly Warid

Zem offers nights free offers to their customers)

6) Geographical : adjusting prices to account for geographic

location of customer. (For example. DHL charges different rates

according to the destination)



CHAPTER 6

INTRODUCTION OF COCA COLA

COMPANY



TYPE : PUBLIC (NYSE:CCE)

FOUNDED : 1926

HEAD QUARTERS : ATLANTA, GEORGIA,

U.S.A.

CHIEF EXECUTIVE OFFICER : JOHN BROCK

CHIEF FINANCIAL OFFICER : WILLIAM W.DOUGLAS

INDUSTRY : BEVERAGES

REVENUE : $19.800 BILLION USD

OPERATING INCOME : $1.495 BILLION USD

NET INCOME : $1.143 BILLION USD

EMPLOYEES : 73,000 (APPROX)



6.1 HISTORY OF COCA-COLA

his story begins in Atlanta, Georgia on May 8, 1886,

when a pharmacist called Dr. John Smith Pemberton first

mixed Coca-Cola in his back yard. This formula, which was

made from carbonated water, cane sugar syrup, caffeine,

extracts of kola nuts and cola leaves, was brought to the

nearby Jacobs’ Pharmacy where it made its Debut as a soft

drink the same day, selling for only 5 cent. His bookkeeper

named this drink “Coca-Cola” after the first two ingredients

and the same distinctive script he wrote it in is the same logo

they use

To this day.

In January 1893 Coca-Cola was registered with the U.S.

patent office. Later on in 1915 the Root glass company

created the famous contour glass bottle for Coca-Cola in

1915.In 1917 Coca-Cola was found to be the world’s most

recognized trademark with a record of 3 million Coke’s sold

per day. Unfortunately, John Pemberton fell ill, and did not

live to see his product’s success.

Sadly, in the first year of Coke’s existence, Pemberton and

his partner only made $50. Pemberton sold two third of his

business in 1888 to cover his losses and keep the business

afloat.

He died later that year, and Mr. Candler, an Atlanta druggist,

purchased total interest in Coca-Cola for an unbelievable

$2,300 in 1891. In 1891,Candler and his brother formed the

Coca-Cola Company.

T



6.2 EARLY GROWTH

In 1893 Candler registered Coca-Cola as a patented

trademark. He also responded to growing concern over

the dangers of cocaine by reducing the amount of coca in

the drink to a trace. However, he kept some coca extract

in Coca-Cola so the name would accurately describe the

drink. Candler only had a patent on the name, and not the

drink syrup that is, the drink’s base, containing all the

ingredients minus carbonated water. He figured that

keeping the Coca in his formula would legally allow the

company to distinguish its drink from imitations. Other

companies also produced soda drink made with cola nut

extract. In particular, the Pepsi-Cola Company would

become Coca-Cola Company’s major competitor over the

next few decades.

Candler also spent more than $11,000 on his first massive

advertising campaign in 1892. The Coca-Cola logo

appeared across the country painted as a mural on walls;

displayed on posters and soda such as calendars and

drinking glasses. In addition, Candler was the first person

ever to use coupons to gain customers for a product. He

distributed flyers offering free soda fountain glasses of

Coca-Cola to people visiting his drugstore.



In 1894 the Coca-Cola Company opened its first Coke

syrup production plant outside of Atlanta, in Dallas, Texas.

That same year a candy storeowner in Vicksburg,

Mississippi, installed bottling machines and produced the

first bottled Coke. It had previously been sold only at soda

fountains. By 1895 the drink was sold in all U.S. states

and territories.

In 1899 lawyers Benjamin Thomas and Joseph

Whitehead of Chattanooga, Tennessee, bought the

exclusive right to distribute Coke syrup to bottles

throughout most of the country for only on dollars, at the

time, Candler saw little profit in bottling and was more

than willing to give up that part of the business.

In 1915 the Root Glass Company created a couture glass

bottle for Coke, its design based on the curvature of a

coca bean. This bottle design became a Coke trademark

worldwide. The same year, Candler retired from the

company, passing it on to his children and moving into

polities. He was elected mayor of Atlanta in 1916.

In 1919 the Candler family sold Coca-Cola to

businessman Ernest Woodruff of Columbus, Georgia, for

$25 million. Woodruff son, Robert, was elected company

president in 1923. Robert Woodruff was a skilled

marketer, and he put more of the company’s resources

into market research than manufacturing Coke.



6.3 WARTIME DEVELOPMENT

During World War II (1939-1945), Woodruff also boosted

Coke’spopuler image in the United States by pledging that

his company would provide Coke to every U.S. soldier.

The company did not limit itself, however, to only doing

business that would increase its success in America. In

the period leading up to the war, between 1930 and 1936,

it had set up a division of the company in Germany, and it

continued that venture during the war. It recreated its

image as a German company and allowed the Germans

to produce all but two, secret, Coca-Cola ingredients in

their own factories.

In 1941 the German company’s president, Max Keith,

developed Fanta orange soda using orange flavoring and

all the German-made Coke ingredients. The Coca-Cola

Company’s wartime efforts helped it expend its global

market, often with the economic support of the U.S.

government.

By the end of the war in 1945, it had established 64

overseas bottling plants. The same year the company

registered a patent on Coca-Cola’s popular nickname,

COKE.



6.4 POSTWAR GROWTH

In 1955 Robert Woodruff retired as the Coca-Cola

Company’s president. Candler and Woodruff are

remembered as the two most important figures in the

company’s early growth, both for their contributions to the

company and their considerable fortunes donated to the

city of Atlanta. After Woodruff departure, the company

began to diversify by producing new products, acquiring

new business, and entering new international markets.

In 1960 the Coca-Cola Company purchased the Minute

Maid Corp. producer of fruit juices and began offering

Coke in cans. Between 1960 and 1963 it also launched

four new soft drink in the United States: Fanta, an orange

soda; Sprite, a lemon-lime soda; Diet Cola; Diet

grapefruit-flavored soda. In 1964 the company acquired

the Duncan foods crop. In 1967, it created the Coca-Cola

foods division by merging its Duncan and Minute Maid

operations.

In the late 1960s, Coca-Cola faced difficulties in some of

its foreign markets. When the company built a bottling

plant in Israel at the outset of the Arab-Israel War, the

governments of all Arab League nations banned the

production and sale of Coke. A year later the company

withdrew from its markets in India when that country’s



government requested that Coca-Cola reduces its equity

in joint ventures to 40 percent. The company refused to

relinquish so much control over those operations.

In 1977 Coca-Cola began packaging Coke and other

drinks in two-liter plastic bottles. The popularity of these

large bottles grew over time, and their sales earned the

company new project, primarily in small specialty and

convenience stores.

In 1982 the company introduced Diet Coke, which soon

becomes the best-selling diet soft drink in the world.

Also in 1982, Coca-Cola purchased the motion-picture

company, Columbia Picture Industries, also know as Tri-

star Pictures, for almost $700 million. Two year later, the

company sold off its Columbia holdings and other media

acquisitions to Sony Corporation for over $1.5 billion.

By 1984 Pepsi-Cola had gained on Coke’s previous

domination of the U.S. market to the point that the two

had almost equal sales. In an attempt to return market

dominance, the company attempted the first-ever reason

of the original Coke recipe.



6.5 RECENT DEVELOPMENTS

In 1986 The COCA-Cola Company consolidated all of its

no franchised U.S. bottling operating as Coca-Cola

Enterprise, Inc. The new company began acquiring

independent bottling companies, a venture that grew into

the world’s largest bottle of soft drinks by 1988, while

Coca-Cola Enterprise distributes over half of all Coca-

Cola products in the United States, small franchises

businesses continue to bottle can and distribute the

company’s drink worldwide.

In 1987 The Coca-Cola Company was fisted in the

prestigious Dow Jones Industrial Averages index of stock

market performance. Its stock is traded on the New York

Stock Exchange. Coca –Cola and Pepsi Company

products occupied nine of the top ten spots in the U.S.

soft drink market in themed-1990s.

Worldwide, Coca-Cola ranked first in soft drink sales, and

the company earned almost 80 percent of its profits from

international sales



CHAPTER -7

INDUSTRIAL PROFILE



7.1 BEVERAGE INDUSTRY IN INDIA: A

BRIEF INSIGHT

In India, beverages form an important part of the lives of

people. It is an industry, in which the players constantly

innovate, in order to come up with better products to gain

more consumers and satisfy the existing consumers.

The beverage industry is vast and there various ways of

segmenting it, so as to cater the right product to the right

person. The different ways of segmenting it are as follows:

• Alcoholic, non-alcoholic and sports beverages

• Natural and Synthetic beverages

• In-home consumption and out of home on premises

consumption.

• Age wise segmentation i.e. beverages for kids, for adults

and for senior citizens

• Segmentation based on the amount of consumption i.e.

high levels of consumption and low levels of consumption.

If the behavioral patterns of consumers in India are closely

noticed, it could be observed that consumers perceive

beverages in two different ways i.e. beverages are a luxury

and that beverages have to be consumed occasionally.

These two perceptions are the biggest challenges faced by

the beverage industry. In order to leverage the beverage

industry, it is important to address this issue so as to



encourage regular consumption as well as and to make the

industry more affordable.

Four strong strategic elements to increase consumption of

the products of the beverage industry in India are:

• The quality and the consistency of beverages needs to be

enhanced so that consumers are satisfied and they enjoy

consuming beverages.

• The credibility and trust needs to be built so that there is a

very strong and safe feeling that the consumers have while

consuming the beverages.

• Consumer education is a must to bring out benefits of

beverage consumption whether in terms of health, taste,

relaxation, stimulation, refreshment, well-being or prestige

relevant to the category.

• Communication should be relevant and trendy so that

consumers are able to find an appeal to go out, purchase

and consume.

The beverage market has still to achieve greater penetration

and also a wider spread of distribution. It is important to look

at the entire beverage market, as a big opportunity, for brand

and sales growth in turn to add up to the overall growth of

the food and beverage industry in the economy.



7.2 SOFT DRINK INDUSTRY IN INDIA

INTRODUCTION

The Indian Soft-Drink Industry is a 3500 crore rupee Industry

comprised of consumer’s throughout the country, and of all

ages. The industry has been comprised of all Indian Soft-

Drinks manufactures and the multinational Coca-Cola up to

1976.

From 1976 to 1989, the industry only comprised of Indian

manufacturers namely, Parle, Campa-Cola and Dukes.

Decades of 90’s have brought changes in Government

Policies of liberalization, which has helped user in two huge

American Multinational Pepsi-Cola international and Coca-

Cola.



� THE CHRONOLOGY OF SOFT-DRINK

SCENARIO IN INDIA

1977

� Refusing to dilute its equity stake, Coca-

Cola winds up it operations in the

country.

� Thums-Up from Parle and Campa-Cola

from Pure Drinks launched.

1986

� An application for a soft drink cum snack

food joint venture by Pepsi. Voltas and

Punjab agro is submitted to the Indian

Government.

1988

� Final approval for the Pepsi food limited

project granted by the Cabinet

committee on economic affairs of the

Rajeev Gandhi Government.

� Coca-Cola South Asia Holding

Incorporation of the U.S. files an

application to manufacture soft drinks



concentrate in Noida (Delhi) free trade

zone.

1990

� Pepsi Cola and 7 Up launched in limited

market in North Indian.

� The Government clears the Pepsi

Project again but with the brand name

changed to Lehar Pepsi.

Simultaneously, it also rejects the

application of Coke. Citra hits the market

from the Parle Stable.

1991

� Britco food files an application before

FIPB to set up a new 50 crore facility in

Maharashtra.

� Pepsi extends its soft drink reach on

national scale. Products launched in

Delhi and Bombay.

� Britco foods application cleared by the

FIPB, Pepsi and start initial negotiations

for a strategic alliance but talks break of

after a while.



1993

� Pepsi launches Teem and Slice to

counter Limca and Maaza respectively

from Parle. Pepsi captures about 30%

market share in about two years.

� Coke files an application for a 100%

owned soft drinks company with FIPB,

Decides to part ways with Rajan Pillai.

The Government clears the Coke

application in record time.

� Voltas pulls out of the Pepsi Food

Limited joint venture. Pepsi decides to

buyout the Voltas share and raises its

equity to 92% Report of Coke Parle joint

gain strength.

� Pepsi launched 1 liter bottles in Pepsi-

Cola, Mirinda and Teem flavors. Sweeps

off the 100ml segment over Pure Drinks.

� Coca-Cola buys out Parle and major

leaders of the market, Ramesh

Chauhan, becomes a part of the Coke

game plan.

� Fountain Pepsi launched in the Northern

part of India.



� Coca-Cola hits the Indian in 300 ml at

the price of 250 ml. Equity 100% for

Coca-Cola.

� Pepsi jump up in to Mineral Water

� name Aquafina.

2000

� Coca-Cola Indian has registered a

growth of 18th percent in its net sale

during the first quarter of the current

fiscal year.

� Hrithik the burning sensation of

Bollywood is hired to advertise Coke

� is very effective.

2001

� Coca-Cola upgraded from 1.5 ltr. To 2

ltr.

� Coke hired Ashwaria, Amir Khan and

Hrithik for effective advertising.



7.3 COCA-COLA IN INDIA

The Coca-Cola Company entered India in the early

1950s. It set up four bottling plants at Bombay, Calcutta,

Kanpur and Delhi.

In 1950 as there were negligible companies in Indian

market therefore Coca-Cola did not face much competition

and they were accepted in Indian market more easily. By the

end of 1977 Coca-Cola had captured more than 45% of

market share in India. Then Coca-Cola left India following

public disputes over share holding structure and import

permit.

As per FERA REGULATION the company was

required to India close operation by May 5, 1978 yet strongly

enough the company’s operation come to end in July 1977.

In October 1993, Coca-Cola returned to India after 16

years of absence with the slogan “Old waves have come to

India again” first launched in HATHRAS near AGRA HOME

of the famous TAJ MAHAL.



At this time Parle was the leader in soft drink market

and had more than 60% of the total market share in soft

drink Coca-Cola joined hand with Parle and strategic alliance

with Parle export give the company instant ownership of the

nation top soft drinks brands Thums-Up, Limca, Citra, Gold

Spot and Maaza access to Parle’s extensive 62 plant bottling

network and a base for the rapid introduction of the

company’s international brand by striking a $40 million deal

with Parle Coke almost a clear sweep and made it goal as

“To become an all occasion drink not a special treat

beverage”.

� Coca-Cola India President Profile

Atul Singh took over as the President & CEO, Coca-Cola

India from 1st September 2005.

Atul, holds a MBA degree from Texas Christian University.

• Prior to this assignment, Atul Singh was the President of

East,Central & South (ECS) China Division in January 2005.

• Prior to joining Coca-Cola, Atul worked for the Colgate

Palmolive Company for 10 years and held several roles

including Country General Manager, Nigeria (1995-1998),

CFO then General Manager, Romania (1992-1995) and

Finance Manager, USA Body Care (1990-1992), Prior to

Colgate, Atul worked as an Auditor with price Waterhouse in

New York.



� Coca-Cola Product Manufacturing Plant

Layout



� Manufacturing Plant Product Process

Manufacturing Process of coca-cola products have different

steps, which are cited below-

• Ingredient Delivery

• Washing and Rinsing

• Mixing and Blending

• Filling

• Capping

• Labeling

• Coding

• Inspection

• Packaging

• Warehousing and delivery



7.4 VISION OF COCA-COLA IN INDIA

Provide exceptional strategic leadership in the Coca-Cola

India System resulting in consumer and customer preference

and loyalty through Coca-Cola’s commitment to them, and in

a highly profitable Coca-Cola corporate branded beverage

system.

VISION FOR SUSTAINABLE GROWTH

• PROFIT: Maximizing return to shareowners while being

mindful of our overall responsibilities.

• PEOPLE: Being a great place to work where people are

inspired to be the best they can be.

• 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.

• PLANET : Being a responsible global citizen that makes a

difference.



7.5 MISSION OF THE COCA-COLA IN INDIA

Create consumer products, services and

communications customer’s service and bottling system

strategy processes and tools in order to create competitive

advantage and deliver superior value to:

� Consumers as a superior beverage experience.

� Consumers as an opportunity to grow profits

through the use of finished drinks.

� Bottlers as an opportunity to make reasonable to

grow profits and volume.

� TCCC as trademark enhancement and positive

economic value added.

� Suppliers as an opportunity to make reasonable

profits when creating real value added in an

environment of system wide teamwork, flexible

business system and continuous improvement.

� CCI associates as superior career opportunity.

� Indian society in the form of a contribution to

economic and social development.



CHAPTER – 8

PRODUCTS OF COCA COLA



8.1 PRODUCT PROFILE OF COCA-COLA

There are nine brands of coca-cola in India and they are

differ in taste, flavor and also in their colors.

1.COKE

Coke is considered to be a cola drink. It is generally

preferred by all sections of consumer. This is a case cow

brand for the company in terms of sales revenue.

2.THUMPS-UP

Thumps-up is also considered to be a cola drink. It is hard in

comparison to coke. It is preferred by all section of

consumers but especially to teen-agers. It is a big source of

company to cash its publicity.

3.LIMCA

Limca is considered to be lemony in taste, and comes under

the category of cloudy lemon because of its colour, which is

similar to that of clouds. It has to yield good sales revenue. It

is generally preferred by Children & Women.

4.FANTA

FANTA ORNAGE, It is orange flavor & preferred by Children

,girls and Women.



5.MAAZA

MAAZA MANGO, in maaza cold drink no gas only based on

juice. It is a non-aerated soft drink. It is preferred mostly

Children & Women.

6.KINLEY SODA

This is a soda drink. It has no colour and no flavor. It is

generally used with alcohol and used by adults.

7.SPRITE

Sprite is a good product at cola and contains at lemon flavor.

8.KINLEY WATER

Kinley water is a fresh and mineral water and market

competitor of Bisleri and Aquafina.

9.MINUTE MAID

In Minute maid pupply orange cold drink no gas only based

on orange juice. It is a non-aerated soft drink and market

competitor of Tropicana Twister.



8.2 PRODUCT RANGE OF COCA COLA

INDIAN PRODUCT RANGE

Flavour Ingredients Pack Product Company

Cola Cola Flavour

carbonated water

sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Coke,

Thumsup

Pepsi

Coca-Cola

Pepsi

Orange Orange Flavour +

Carbonated

Water+ Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Fanta

Mirinda

Coca-Cola

Pepsi

Fruit Juice Mango Pulp+

Treated water+

sugar

250 ML Maaza

Slice

Coca-Cola

Pepsi

Cloudy

Lemon

Lemon Flavour +

Carbonated

Water+ Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Limca

Mirinda Lemon

Coca-Cola

Pepsi



Clear

Lemon

Lemon Flavour+

Carbonated Water

+ Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Sprite

7’Up

Dew

Coca-Cola

Pepsi



8.3 DIFFERENT PLAYERS IN THE SOFT

DRINKS MARKET

� PEPSI

Caleb Brandhum, a North Caroline Pharmacist,

structure Pepsi Cola in the 1890’s as cure of dyspepsia

(indigestion). In 1902, Bradhum applied for a trade mark,

issued ninety seven share of stock and began selling Pepsi

syrup in earnest. In his first year of business he spend $1900

on advertising a huge sum that he sold only 8000 gallons of

syrup. In 1905 Bradhum built Pepsi’s bottling plant. By 1907

he was selling 10,000 gallons a year, two years later, he

hired a New York advertising agency. After passing through

many troubles for some period now Pepsi is a market leader

in international arence and is available in 187 Nations

throughout the world in 18 flavors having its Head Office in

New York, United State. Pepsi has 13 bottlers with 26 plants

in India. Through this compared with 60 plants of Coke is

quite less, yet the market share of Pepsi has increased quite

significantly.



� PEPSI IN INDIA

This $3040 billon, New York (U.S.) based Pepsi Company,

had to start from scratch after entering the country in 1989.

Deep blue Pepsi, is a broad based food and beverage

company, deriving more than 60% of it’s sales and operating

profits from it’s snack foods and restaurant business.

Pepsi started its commercial production in 1990 with plants,

one at Channo (Sangrur) and other at Jahura (Distt.

Hoshiarpur). Pepsi drink, which was introduced six year

back, has now become the household name thought the

country.

The Marketing efforts of Pepsi in the first three year were so

successful, that Pepsi had taken major market share of Parle

and Parle has to face hard times. Pepsi-Cola has been

positioned as a drink for the young. It’s popular slogan “YEHI

HAI RIGHT CHOICE BABY” go to show that appeal is

significantly for the younger generation in a popular, much

aired commercial, Bollywood star Sachin Tendulkar. Began

to cdroon in the tune only after he’d guzzled, the right cola,

made the smart choice (A-Ha!).

Behind the hype in an effort invisible to consumer Pepsi

pumped in Rs. 300 crore to add muscle to its infrastructure in

bottling and distribution.

At present Pepsi is at war with Coke at National level.



� CADBURYSCHWEPPES

CADBURY SCHWEPPES IN INDIA

May 1995 one more soft drink Cadbury Schweppes entered

the Indian soft drink market and now the competition in this

industry is more due to rise in the number of competition and

also due to large product range that they all are offering to

the market. Cadbury Schweppes, just about two year old in

India udebtufues with the guerilla. Number three in the

aerated soft drink market after Pepsi and Coca-Cola

Company; it is resorting to some very smart footwork to gain

its share of silence.

The company wants to be number one in the non-cola

aerated soft drink market, to which end it has unabashed a

series of tactics. “WE DON’T DIRECTLY HIT COMPETITION

BUT CHOP AT AWAY AT THE ENGED”. Says Ashok Jain

C.E.O Cadbury Schweppes India. The idea is to convert the

narrow scrip to a niche and build it to a position of reverence

with a consumer.

John S. Perberton, who in 1886 first construed coke syrup in

his laboratory, knows little that he had made a formula that

would sell one day to a thirsty market of 13.1 billion dollar

coke drinkers.



Perberton was morphine addict who was trying to create

marketable patent medicine. When his experiments led to

the new scared Coke formula. He had only modest success

selling Coke in Atlanta and he sold his formula and right for a

pittance. He died in 1888. Atlanta druggist as a Candler who

soon gained control of Coca-Cola is in many way the true

father of coke. He transformed the small time operations in to

a nation wide soda fountain sensation.

Early on, Coke had a distinct cocaine kick, even through

corporate, Coke has long dispute. This piece of America folk

care, saying the coke leaf, was they with the syrup and

training needed to produce distributes and sell the product

and above all the most valuable assent, the trademark.

Also coca-cola’s main revenue stream is from the sale of

concentrate of its bottles. In India, the sole rights the

manufacturer concentrate rests with its 100% subsidiary

coca-cola beverages near Pune.

A unit of concentrate makes 400 cases (of 24 bottles

each) and according to an estimate generates income of Rs.

20 per case for the parent company.



� Nestlé :

Nestle does not give that tough a competition to Coca-Cola as it

mainly deals with milk products, Baby foods and Chocolates. But

the iced tea that is Nestea which has been introduced into the

market by Nestle provides a considerable amount of competition to

the products of the Company. Iced tea is one of the closest

substitutes to the Colas as it is a thirst quencher and it is healthier

when compared to fizz drinks. The flavored milk products also

have become substitutes to the products of the company due to

growing health awareness among people.

� Dabur :

Dabur in India, is one of the most trusted brands as it has been

operating ever since times and people have laid all their trust in

the Company and the products of the Company. Apart from food

products, Dabur has introduced into the market Real Juice which is

packaged fresh fruit juice. These products give a strong

competition to Maaza and the latest product Minute Maid Pulpy

Orange.



CHAPTER -9

COCA COLA MARKETING STRATEGIES



� MARKETING STRATEGY

Our local marketing strategy enables Coke to listen to all the

voices around the world asking for beverages that span the

entire spectrum of tastes and occasions. What people want

in a beverage is a reflection of who they are, where they live,

how they work and play, and how they relax and recharge.

Whether you're a student in the United States enjoying a

refreshing Coca-Cola, a woman in Italy taking a tea break, a

child in Peru asking for a juice drink, or a couple in Korea

buying bottled water after a run together, we're there for you.

We are determined not only to make great drinks, but also to

contribute to communities around the world through our

commitments to education, health, wellness, and diversity.

Coke strives to be a good neighbor, consistently shaping our

business decisions to improve the quality of life in the

communities in which we do business. Marketing strategy a

part of the marketing management process: The marketing

management uses marketing strategies so that they can

meet the customer's needs. The marketing strategyinvolves

pricing, advertising, branding, packaging.

• Some of Coca-Cola’s latest domestic marketing strategies

include Coke dominating fountain sales. Thousands of

consumers visit fast-food restaurants every day and Coke

feels that it is very important to have the consumer see and

drink their product at such chains as McDonalds, Burger

King, and Domino’s Pizza.



9.1 THE COMPETITIVE AREA AMONG

COKE AND PEPSI

The soft drink market all over the world as been witnessing a

neck-to-neck battle between the two major players; Coca-

Cola and Pepsi since very beginning. The thirst quenchers

are trying hard to have the major piece of the apple of overall

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 been

dominating the scene in most of the soft drink market of the

world and enjoying the leadership terms of the market share.

But the coca-cola people are finding it hard to deep away

Pepsi, which has been narrowing the gaps regularly; the two

are posing threats for each other in every nook and corner of

the world. While coca-cola has been earning most of the part

of its bread and butler through beverages sales, Pepsi has a

multi products portfolio with a handsome portion from the

same business.

The two warriors are face to face once again here in India

with different strategies and policies to attack at rival Coca-

Cola is focusing upon the joint ventures with the existing



bottlers to enhance its control on manufacturing and

marketing of its product range and attain the quality

standards of its class. Countering its Pepsi has taken the

baton in its own hands by floating and investment of $95

millions to set 6 Pepsin Co. India Holdings, a subsidiary for

company’s owned bottling operation (COBO). Both of the

companies are following different path to reach the same

destiny i.e. to fetch the bigger portion of aerated soft drink

market in India.

Both the competitors have distinct vision and priorities about

the Indian soft drink market. Through having so much

difference and distances with each other, they both consider

India as a huge potential market as per capita consumption

here in more 3 servings per year against an international of

80. Throughout, they are putting their best efforts to woe

Indian consumer who has to work for 1.5 hours to by a bottle

cross over for both the athletes running for getting No.1

position.

Coca-Cola is well set with its 53 bottling sites throughout the

country giving it an edge over competition by possessing a

well built manufacturing and distribution set up on the other

side of picture, Pepsi, with two more year in India, has been

able to set an image of winner this giants are ready to turn

every stone of opportunity with a mindset of long tenure this

time.



Coca-Cola has been penetrating the market through its

wide product range with a determination to change

competition pattern of soft drink in India. Firstly, they

upgraded the whole industry by introducing 300 ml bottles,

which in turn, had given the industry a booming growth of 20

% as compared to 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, nibu pani, water etc.

Pepsi is quite aggressive in its approach to Indian consumer.

They are desperately working in the strategy to be winner

side in the hot cola war between tow big barons. According

to Pepsi philosophy it’s the madness that encourages

executives to thin to conjure up those creative tactics to

knock the fizz out of their competition. Pepsi had pumped a

large amount on the visibility of its blue-red-and-white logo.

They have been going with aggressive marketing by putting

Sachine Tendulkar and now Shahrukh Khan in their

advertisement to endorses their brand, the role models for its

targeted consumer the teenagers. They have increase the

fizz in the market price by introducing the dispensers called

fountain Pepsi and been enjoying a lead over its rival three.



Coca-Cola on the other hand, has been working on the

saying ‘skew’ and stead with ‘race’, side by side retailing to

the every move of its competitor. They have produced the

shield of Thums Up with a handsome market share in India

soft drink market. Countering Pepsi; international commercial

that used two chimpanzees to coke a snack at coke, Thums

Up came with the aid line, “Don’t be Bandar, taste the

thunder” Also Thums Up has been positioned now very near

to that of young in age of Pepsi and giving it tuff time.

Everything has been put on fire by these cool merchants. If

Coke got the status of the “Official drink of Wills World Cup”,

Pepsi blushed as “Nothing official about it”. As Thums Up

projected as ‘Saare Jahan Se Achchha’. Pepsi was

passionate enough with ‘Freedom to be’. When Thums Up

came up with ‘Thunder Blast’, the other one offered, Pepsi

‘Stuff Card’. If red color is meant for Coke, Pepsi has chosen

to be Blue. In this way, Indian consumer is getting more fizz

and punch from the two big brothers and he has to given not

about the winner.



9.2 ADVERTISING

Advertising is non-promotion of goods and services, by

a sponsor (a firm or person) who can be identified and who

has paid for this communication. This purpose of

advertisement is to sell something a good service, idea

person or place, either now or later this goal, reached by

setting specific objective that can be expressed individual

ads. Those are incorporated into an advertising campaign

recall again from the buying decision process that buyers go

through a series of stages from unawareness to target

customers to the next stage in the hierarchy say from

awareness to interest.

Advertisement plays an important role in the success of

coca-cola product since its first newspaper ad. In 1886 that

red, coca-cola delicious “Refreshing Exhilarating”

Invigorating”. Advertisement is a key of implementing a

strategy over one hundred year old to trigger desire as offer

and in as many ways as possible.



9.3 ADVERTISEMENTS TARGETED BY

COKE

To target various consumer segment of soft drink different

add featuring cricket star, cine star, pop star have been

created.

1.Lisa Ray (famous model) in a very interesting add,

which featuring him bathing with sprite. Having a

catching line “Sprite bujhaye only pyass baki all

bakwaas”.

2.Amir Khan & Ashwarya Rai (both cine stars), which

targeted younger generation. This add Contained

imagery of rugged and romantic for 330 ml of coke.

Theme “ Coca-Cola Ho Jay”.

3.imca leaving its old image of “Lime-n-Limoni” drink is

been shown as in the add. Featuring Shaif Ali Khan. A

drink that could just change the mood at time of

disappointment lines. “Gala Gaya Sookh Limca Key

Liye Ruk”.

4. Fanta Showing children having lines “Bold Ho Jayo”.

5. family giving new look to Maaza “ Tazza Mango”.

6.Diet the exiting add. on the pool with fall swing calling

“Taste The Power Of One Calorie”.



9.4 PROMOTION BY THE COMPANY

All advertisement expenditure is incurred by coca-cola

India, but only D.P. Board, wall painting, S.G.A.’s etc.

Company spends on it around 8-9 % total sales company

invested 305 crore rupees in advertisement Budget.

p Radio.

p T.V.

p Hoardings.

p Road signs.

p Sticker.

p Neon light.

p Banners.

p Newspaper.

p Magazines.

p Exhibition.

p Posters.

p Sponsoring local events.



9.5 SOME OTHER TECHNIQUES FOR

PROMOTION OF COCA-COLA COMPANY

Coca-Cola and The Olympic Games

The company's international blitz began in 1926

when company President Robert Woodruff signed Coca-

Cola as a sponsor of the 1928 Olympic Summer Games

in Amsterdam. The U.S. Olympic Team and 1,000 cases

of Coca-Cola arrived at the games by freighter. Sin ce

then, the relationship between the Olympic Games an d

Coca-Cola has only grown!

Many Coca-Cola divisions around the world

sponsor individual athletes or teams as well.

1928 was also the first year the Olympic flame was lit,

and women were invited to compete.

1952 -- The Summer Games in Helsinki - Coca-Cola

shipped 300,000 cases of bottles and donated it for sale

by the Disabled Ex-servicemen's Association.

1952 -- The Winter Games in Oslo - The local Coca-Cola

bottler chartered a helicopter for advertising. In 1952

most people had never seen anything like a helicopt er

and they were utterly fascinated. At the close of t he

games, the helicopter was given to the city to help direct

traffic.



1960 -- The Summer Games in Rome - Italian bottlers

welcomed athletes, officials and spectators to Rome

with a 45 rpm record of "Arrivederci Roma."

1964 -- The Summer Games in Tokyo - This marked the

first year Coca-Cola aided the athletes, spectators and

media with guide maps, sightseeing information and a

phrase book. The idea was so popular, it was adapte d

for use in Mexico City, Sapporo (Japan) and Munich.

1979 -- The Coca-Cola company worked with the

Olympic Committee to create the U.S. Olympic Hall o f

fame.

1988 -- The Winter Games in Calgary - Coca-Cola

orchestrated a world children's chorus. Also, Coca- Cola

opened the venue for what would later be deemed the

games number-one spectator sport -- The Coca-Cola

Official Olympic Pin Trading Center.

1996 -- The Summer Games in Atlanta - The Games'

centennial, as sole sponsor of the Olympic Torch Re lay,

Coca-Cola brought the flame to more than 350 cities and

towns during the 94-day run.



Olympic Commemorative Cans

1928 Amsterdam 1 948 London

1964 Tokyo 1992 Barcelona

1996 Atlanta 2002

2004 2006



9.6 SALES PROMOTION TECHNIQUES OF

COMPANY

1. Good Advertising.

2. Effective Incentive Policy.

3. Quality.

4. Wide & Deep Distribution System.

5. Attractive packaging.

6. Allotting SGA’S (Refrigerator, Chest cooler, Tab le

Umbrella, Chairs etc.) to retailers.

7. Decorating Retailers shop by display board,

dealer’s board etc.

� CRITERIA FOR PROVIDING FREE CHILLING

EQUIPMENTS

With every 1-2 crates purchased daily or alternativ ely an

icebox is provided.

• For an average consumption of 5-6 crates a

visi-cooler of 4crates.

• For a purchase of 7-8 crates daily visicooler 7

crates.

• If purchase exceeds 8 crates, then 9 crates

visicooler or deep fridger is provided.

• With every chilling equipment a steplizer is

provided it may be of 1 KV or 5 KV.



9.7 SALES PROMOTION ACTIVITIES

� Coca-Cola Cricket

All part of brand Coca-Cola’s GLOBAL campaign, now

unveiled in India .

Coca-Cola Open Happiness is all about inviting people to

welcome small moments of joy & happiness into their lives-

idea really is to pause, enjoy a bottle of Coca-Cola and also

enjoy life's simple pleasures.

First in the series of the 2009 summer campaign to feature

Gautam Gambhir, leveraging the passion of cricket amongst

the youth

India, one of the first few strategic markets to roll out the

‘Coca-Cola Open Happiness’, follows its immensely

successful launch in the US.

‘Coca-Cola Open Happiness communication initiative in

India, conceptualized by Nakul Sharma (Creative Team

Leader, Copy) and Tirtha Ghosh (Creative Director, Art),

under the supervision of Ashish Chakravarty, Executive

Creative Director, McCann Erickson- Delhi, directed by

Dibakar Bannerjee and produced by Freshwater Films Pvt.

Ltd.



In-addition to leveraging mass media, the entire

communication effort will be complimented by a range of

initiatives including in store & on- the- ground activation

across all key markets.

According to Indian cricket sensation, Opening Batsman

for Delhi Daredevils and Coca-Cola brand ambassador ,

Gautam Gambhir , “It feels great to be associated with brand

Coca-Cola. Coca-Cola has always been associated with

refreshment, happiness and moments of joy. All these are

the qualities that I closely identify with. I look forward to a

very exciting innings with Coca-Cola.”



� Coca-Cola Concerts

COCA-COLA ZERO™ BRINGS YOU THE BIGGEST

MUSIC FESTIVAL OF 2009 Johannesburg, 21st January

2009 – Coca-Cola Zero™, 5FM and BIG Concerts are

thrilled to announce the first ever COCA-COLA ZERO™

FEST , giving South Africans a taste of life as it should be.

“Coca-Cola Zero™ has taken the market by storm since its

launch in August 2008 - its personality is different. It’s what

consumers least expected, the taste we have always had of

Coca-Cola but with zero sugar. The product is edgy and

innovative – a perfect match for the Coca-Cola Zero™ Fest

artist line up,” said Coca-Cola TM Strategic Marketing

Manager, Zayd Abrahams.

Abrahams said: “Consumers can now believe that

unbelievable things do happen: the brand has a series of

exciting and unexpected initiatives around the Believe It!

Theme, including Coca-Cola Zero™ Fest.”

The Coca-Cola Zero™ Fest will take place at

Johannesburg’s New Market Racecourse on Friday, 10 April

2009 and Cape Town’s Ostrich Farm on Monday, 13 April

2009.



The Coca-Cola Zero™ Fest will also feature local favourites

like Zebra and Giraffe, The Dirty Skirts, and more to come.

“5FM is very excited to be part of Coca - Cola Zero Fest

2009. Oasis is a legendary band that many of our listeners

grew up listening to and their live performance is sure to be

spectacular. Snow Patrol and Panic! at the Disco have both

had (and continue to have) chart success on 5FM. Coca-

Cola Zero and 5fm look forward to giving our listeners the

chance to see them live in SA at the Coca-Cola Zero Fest.

For a taste of Panic! at the Disco’s live performance, listen to

5FM’s (Live)5 at 5pm on Saturday 24th January”, said 5FM’s

Station Manager – Helen Graham.

Taste life as it should be – Real Coke Taste, Zero Sugar.

Grab Coca-Cola Zero™, tune into 5FM and watch this

space, as we announce more details.



Chapter – 10

COMPANY’S STATUS



10.1 Coca-Cola Management

The Coca-Cola brand is one of the world’s most popular and

recognizable. Therefore, Coca-Cola management strategy is

geared towards the continued success of its famous brand.

However, despite a strong brand, management of change

has been necessary at Coca-Cola. The corporate culture

involving a super-brand like Coke can result in managers

becoming overconfident in the product as well as the

processes and procedures that have built up throughout the

company over time. The danger is that the public will simply

get bored with the brand.

Therefore, both Coca-Cola management and Coca-Cola

strategy have undergone radical changes over the years.

When former chief executive Robert Goizueta was at the

helm, he demonstrated that the company was earning less

than its cost of capital. Therefore, he led Coca-Cola through

great change in management structure. By adjusting the way

the businesses and managers were assessed and by

radically reforming key relationships with Coca-Cola bottlers,

Goizueta oversaw spectacular improvement in performance.

However, over the years the Coca-Cola brand strategy has

not always proved successful. The attempted relaunch of the

core product as New Coke in the 1980s was a dangerous

risk and proved almost calamitous, requiring a complete

rethink in Coca-Cola marketing strategy.



The following articles refer to Coca-Cola and Coca-Cola

management. Use them to learn from the past of Coca-Cola

and the present of Coca-Cola to build a successful future for

you and your own organization.



� BOARD OF DIRECTORS

1. Mr David M Gonski, AC (Chairman, Non Exec. Director)

2. Mr Terry J Davis (Executive Director, Managing Director)

3. Ms Jillian R Broadbent, AO (Non Exec. Director)

4. Mr Wallace Macarthur King, AO (Non Exec. Director)

5. Mr Geoff Kelly (Non Exec. Director)

6. Mr Irial Finan (Non Exec. Director)

7. Mr David Edward Meiklejohn (Non Exec. Director)

8. Ms Catherine Brenner (Non Exec. Director)

9. Ms Nessa O'Sullivan (CFO)

10. Mr Ken McKenzie (CFO)

Company Secretary: - Mr. George Thomas Forster



10.2 FINANCIAL STATUS

COCA-COLA FINANCIAL ANALYSIS

TABLE . A Coca-Cola Financial Information

Company Type Public

Fiscal Year-End December

Annual Report Company Web Site

Investor Relations Company Web Site

TABLE . B Coca-Cola Competitive Intelligence

Dr Pepper Snapple Group Nestlé PepsiCo

Annual Sales ($ mil.) 5,700.0 80,715.9 39,474.0

Employees 20,000 265,000 185,000

Market Cap ($ mil.) -- -- 85,635.0

TABLE .C Coca-Cola Income Statement

2007 2006 2005

Revenue ($ mil.) 28,857.0 24,088.0 23,104.0

Gross Profit ($ mil.) 18,451.0 15,924.0 14,909.0

Operating Income ($ mil.) 7,252.0 6,308.0 6,085.0

Total Net Income ($ mil.) 5,981.0 5,080.0 4,872.0

Diluted EPS (Net Income) 2.57 2.16 2.04



10.3 CASH FLOW OF COCA COLA

TABLE :- A CASH FLOW

View: Annual Data All numbers in thousands

PERIOD ENDING 31-Dec-08 31-Dec-07 31-Dec-06

Net Income 5,807,000 5,981,000 5,080,000

Operating Activities, Cash Flows Provided By or Use d In

Depreciation 1,228,000 1,163,000 938,000

Adjustments To Net Income 1,224,000 - 554,000

Changes In Accounts Receivables 148,000 (406,000) (214,000)

Changes In Liabilities (734,000) 914,000 (99,000)

Changes In Inventories (165,000) (258,000) (150,000)

Changes In Other Operating Activities 63,000 (244,000) (152,000)

Total Cash Flow From Operating Activities 7,571,000 7,150,000 5,957,000

Investing Activities, Cash Flows Provided By or Use d In

Capital Expenditures (1,968,000) (1,648,000) (1,407,000)

Investments (240,000) 349,000 558,000

Other Cashflows from Investing Activities (155,000) (5,420,000) (851,000)

Total Cash Flows From Investing Activities (2,363,000) (6,719,000) (1,700,000)

Financing Activities, Cash Flows Provided By or Use d In

Dividends Paid (3,521,000) (3,149,000) (2,911,000)

Sale Purchase of Stock (493,000) (219,000) (2,268,000)

Net Borrowings 29,000 4,341,000 (1,404,000)

Other Cash Flows from Financing Activities - - -

Total Cash Flows From Financing Activities (3,985,000) 973,000 (6,583,000)

Effect Of Exchange Rate Changes (615,000) 249,000 65,000

Change In Cash and Cash Equivalents $608,000 $1,653,000 ($2,261



CHAPTER – 11

LATEST UPDATES



� Coca Cola signs Gautam Gambhir as

brand ambassador

NEW DELHI: Soft drink major Coca Cola has roped in

Gautam Gambhir as brand ambassador for Coke and the

cricketer will be featuring in the company's new campaign to

be rolled out this week.

"It is first in the series of the 2009 summer campaign to

feature Gautam Gambhir, leveraging the passion of cricket

amongst the youth," Coca Cola said in a statement.

The company said the new 'Coca-Cola Open Happiness'

campaign is designed to serve as a platform for all integrated

marketing initiatives for brand Coca-Cola globally.

"India is one of the first few strategic markets to roll out

Coca-Cola Open Happiness after its successful launch in the

US," it added.

On being signed for the campaign, Gambhir, who is also the

opening batsman for IPL team Delhi Daredevils, said, "Coca-

Cola has always been associated with refreshment,

happiness and moments of joy. All these are the qualities

that I closely identify with." The campaign is expected to be

rolled out this week. Talking about the campaign, Coca-Cola

India Director- Marketing Kashmira Chadha said, "In addition

to leveraging mass media, the entire communication effort

will be complimented by a range of initiatives including in-

store and on-the-ground activation across all key markets.



� Coca-Cola appoints SangeetaPendurkar

as VP 05 March, 2009

Sangeeta Pendurkar has joined Coca-Cola India from HSBC

Bank Middle East as its vice president -- strategy. Pendurkar

will be responsible for providing leadership to Coca-Cola

India’s strategic planning initiatives and the international

trade business.

Prior to joining Coca-Cola India, Pendurkar was working as

the chief marketing officer of HSBC Bank Middle East. She

will report to Atul Singh, president & CEO, Coca-Cola India.

“The per capita consumption of soft drinks is one of the

lowest in the world here. We are at the threshold of a

packaged beverage revolution and a right brand, price, pack

and channel (BPPC) strategy will ensure that we further

penetrate this market and fulfil the daily beverage needs of

our consumers,” said Singh. “Sangeeta will be a key

resource who would help us realize the potential by leading

our strategic planning function.”

Pendurkar began her career with Hindustan Ciba-Geigy Ltd

(currently Novartis India) as a management trainee in 1988

and in a span of eight years moved across various roles in

market research, product development and marketing.

Pendurkar has also worked with Hindustan Lever and with

Kimberly Clark Lever in various capacities in the sales &

marketing



� Coca Cola bags Golden Peacock award

for CSR

New Delhi, Coca-Cola India has bagged the Golden Peacock

Global Award for Corporate Social responsibility - 2008, for

its efforts in water conservation and management and

community development initiatives.

The award, presented by former Prime Minister of Sweden

and Chairman of the Awards jury Ola Ullsten at the 3rd

Global Conference on Social Responsibility in Vilamoura,

Portugal, was received by Coca-Cola India Vice- President

Public Affairs and Communication Deepak Jolly.

Commenting of the development Coca-Cola India President

and CEO Atul Singh said in a statement, "We are also

establishing the Coca-Cola India Foundation, which will

further strive to make a positive impact on local

communities." The company remains committed to work

with stakeholders and communities across the country in its

bid to contribute to mutual growth and development.

Coca-Cola India has installed 320 Rain Water Harvesting

(RWH) structures in 17 states and has restored several

traditional water bodies and check dams across the country

for water conservation.



� Coca Cola to keep Pepsi off screen

during IPL matches

New Delhi, Apr 1 2009 Soft drinks major Coca Cola has

pulled off an on-air coup against arch rival Pepsi in the much

anticipated upcoming T20 Indian Premier Leauge (IPL) by

successfully signing as one of the associate sponsors with

broadcaster Set Max.

According to industry sources, Coca Cola has paid anywhere

between Rs 16-20 crore for one year for the series giving it

direct access to prime-time on the channel, enabling the

company to advertise exclusively its entire portfolio during

the 44 day event beginning April 18.

As a result, Pepsi which paid a hefty sum of 12.5 million

dollars (about Rs 50 crore) to become the official on-ground

sponsor, will not be able to air its commercials during the

matches.

Pepsi had recently launched its 'Youngistaan' TV campaign

featuring Shah Rukh Khan, Ranbir Kapoor and Deepika

Padukone for the season, while Coke also introduced a

variety of campaigns for different products featuring Hrithik

Roshan, Aamir Khan and Akshay Kumar.

Pepsi also has leading cricketers, including Sachin

Tendulkar, M S Dhoni, Ishant Sharma and Rohit Sharma, in

its list of brand ambassadors.



� What’s new in Coca-Cola India2009

Part of the phased launch, Fanta Apple will be initially made

available to consumers in the two Southern Indian States of

Andhra Pradesh & Tamil Nadu,followed by a national roll out

in the next two months the company has also signed up the

young and charmingGenelia D’Souza of ‘Bommarilu’ ‘Boys’

and ‘Jaane Tu YaJaane Na’ fame as the new Fanta Brand

Ambassador.

� Coca-Cola eyes Innocent stake - Soft

drinks - 2009 10/03/09

Coca-Cola is reportedly in discussions with Innocent about

acquiring a stake in the smoothies brand.

Coca-Cola's existing juice brand, Minute Maid, has not made

a significant impact in the UK, despite being a huge seller in

the US.

"Innocent needs the resources to stretch the brand and gain

momentum again," said brand consultant and former

Innocent marketing director Gareth Helm said.

"It would be fantastic for Coke if it could get a stake in such

an established brand in this sector."



CHAPTER – 12

SWOT ANALYSIS



SWOT ANALYSIS

STRENGTHS

1. Improved quality control.

2. Latest technology.

3. Heavy investment in both infrastructure and sale s

promotion campaigns.

4. Modified and attractive packaging.

5. Strong advertising network.

WEAKNESS

1. Entire infrastructure needs a face-lift.

2. Unskilled labour.

3. Tight case policy.

4. Fear of retrenchment among the workers.



OPPORTUNITIES

1. Wide market.

2. Good rural market.

3. Direct distribution.

THREATS

1. Stiff competition.

2. Illegal distribution done by some distrib utors.

4. Changing of consumer preference.



CHAPTER – 13

DATA FINDING AND ANALYSIS



� DATA FINDING AND ANALYSIS OF RETAIL

OUTLET

Q. 1 Is a coca-cola cooler present?

As Per The Analysis Coca Cola Coolers were Presents In All The

Retail Outlets were I conducted my survey. As per my findings

coca cola cooler are mostly present in retail outlet who are the

largest seller of coke. The coke company usually setup sales

target for the retail outlet if the target is achieved by the respective

outlet it provide the cooler in kind to the outlets.

Q.2 Is the cooler as per standard?



As per my analysis,the cooler provided by the coca cola company

were as per the standard.there fore 100% coolers were standard.

Q.3 Is the visicooler in the prime position?



Yes,most of the biggest outlets usually kept the visi cooler in the

prime position,so as to attract the customer who passed by.

As per my analysis 80% of retail outlets kept thevisi cooler at

prime location.wher as 20% outlets kept visi cooler inside the

store due to non availability of efficient space.

Q.4 Is the visicooler in a working condition?



Yes,70%visi cooler were in proper working condition.As the

company itself take care of its service and maintenance.

But in case of 30% it was dually neglected,the visicooler was

not properly maintained.

Q.5 Is the visicooler light working?



Yes 80% of visi cooler light was working and 20% of visi cooler

light was not working to save electricity consumption at the time

of load scheduling.

Q.6 Is the product of coca cola available?



Its but obivious,every retailoutlet,hotels,restaurants and

colleges has product of cocacola in as a soft drink.

Q.7 Is the product of coca cola in different size available?



Yes, 90%of retail outlet has different size of coca cola product

like mazza was available in threedifferent size

i.e200ml,1.25l,and pets.

And 10% of retail outlet does not have different size as the

retail outlet was located near school and colleges.

Q.8 Which drink do people prefer in coca cola product in your retail

outlet?



As per the retailers,coke was in more demand.As 40%of people

prefer coke and 30%prefer sprite. These drinks are mostly

consume by youngster.

Where as Mazza and Kinley soda are in same percentage i.e 10%.

Q.9 Do consumer of Coca cola settles for product of

competitive product?



As per my findings,if the customer is loyal to a particular

taste or brand then it dose not go for any other brand.

In this case 70%consumers do not settle with a competitive

product.where in the case of 30%the custer switch on to any

other brand available.

Q.10 Which product of competitive product are choosen over

coca cola product?



As per my analysis Bisleri is among the most demand

product. Hence 40% of consumer switch over to Bisleri.

Mirinda and 7up are in same ratio i.e if in case Fanta and

Sprite are not available 20% of consumer can switch over to

coca cola competitive product.

� QUESTIONAIRE FOR CONSUMERS

Q.1 Gender Of The Consumer?



As per my sample size 75% were male and 25%were female.

Q.2 Age Group Of The Consumer?



As per my sample size the age of the consumer below 15 were

30%and age group of15 - 25 were 40%.and from 26 -35 and

above were 15%.

Q.3 Do You Prefer soft drink?



100% customers were the consumer of soft drink.

As soft drink consist of Mazza, kinley water, sprite etc.

Q.4 Which Brand In Soft Drink Does You Commonly Prefer?



As per my findings, major consumer was for coca cola that amount

to 60%.and rest for pepsico.

Q.5 Which Product Of Pepsico Does You Generaly Consumes?



Among pepsico brand pepsi is the highest consumed drink that

consist of 40% .And after that mirinda is the second highest

consume i.e 30%.

Q.6 Which Product Of Coca Cola Does You Generaly Consumes?



In coca cocla brand the sprite is among the highest saleable drink

i.e 30%.And in coca cola brand mostly all the drinks are highly

consume by the customer.As per my analysis Mazza share25%

and same in the case of 25%coke.

Q.7 Reason To Purchase Coca Cola Drinks?



The taste is what the consumer generaly prefer hence 45% of the

consumer give more important towards the taste of the Coca Cola

brand.

The second most important factor is price for choosing a particular

drink, hence 40% of consumer feels dually see the price of

particular product as a deciding factor to switch on to that

particular product.

And the third important factor is the bnrand name that is created by

heavly investing in advertisements and pay high amount of perks

to grab the Biggest brand ambassdor.

Q.8 Do The Advertisement Of Cold Drinks Have Influenced You To

Buy?



85% of respondents as per my analysis are highly influenced by

advertisement.

And 15% have no effect of advertisement. They dually prefer taste

and if the customer is brand loyal he won’t pay more attention

towards the advertisement.

Q.9 Which Soft Drink Advertisement Has An Impact On You To

Buy That Particular Drink?



45% respondents they are mostly impressed by the pepsi ad. As

their Brand ambassador are Dhoni, Ranveer Kapoor, Priyanka

chopra and etc. who represent the young generation hence it has

major impact on young generation.

CHAPTER – 14

SUGGESTIONS AND RECOMMEDATION:-



• If the coca cola provide the cooler to its retail outlet

then they should make sure that the coolers size is

according to the space available at the particular outlet.

They should also look that the cooler are kept at the

prime location to attract the consumer.

• Coca cola should frequently make attempt to see that

the cooler which is provided to the outlet the consumer.

• It should make sure that every size of coca cola

product should be available to each and every outlet,so

that consumer cannot switch to the competitive

product.

• They should sign somebody who can motivate the

young generation like sportsperson,filmstar.they can

frequently updates the advertisement and make

marketing strategy aggressive like:-their should be

more creativity in advertisement andincrease their

sponsorship.

• They can increase their product range such as

New flavours as per the consumer tasteand more health

drinks

CHAPTER - 15

CONCLUSION



• As per my findings, coca cola provide coolertoevery

outlet which sell its product and it make sure that the

coolers were in working condition so,frequently

servicing and maintenance was done by the coca cola

company.

• The visi cooler should be at prime location so, that

customer get attracted and buy the coca cola product.

• I would like to conclude that coca cola product was

available in different size in different outlet to fulfill the

desire of various consumer.

• Most of the customerof the coca colabrand who prefer

the tacte of coke and consumers loyal towards coca

cola product did not switch off to other competitive

brand but then in case of non availability of any coca

cola product consumer do not find difficulties to switch

to any other brand.

• As per the survey the males are the highest consumer

of the soft drink and the age group 15 – 25 are

consuming more soft drink and after that its below15

age group,hence the target consumerof the soft drink

are young generation.

• As per my findings sprite was highest consumable

drink among the coca cola product and all the other

oca cola product are highly consume as the number of

ratio is usually same.



• The customer while choosing drink emphasis on its

taste and after the a give preference to price.

• In 21st century advertisement plays a big role to create

a brand awareness and product awareness. Hencethe

population is influenced by advertisement of a

particular product.

• As pepsico has a brand ambassador like MAHINDER

SINGH DHONI who is currently captain of Indian

cricket team and cricket is worship in India hence he

represent the youth icon in country.

So coca cola company should make an attempt to replace

someone who is more competitive.

CHAPTER - 16



REFERENCE SECTION

16.1QUESTIONNAIRE

� QUESTIONNAIRE FOR RETAIL OUTLET

RETAIL OUTLET NAME :-

ADDRESS:-



PHONE NO:-

Q.1 Is a coca-cola cooler present?

� yes � no

Q.2 Is the cooler as per standard?

� yes � no

Q.3 Is the visicooler in the prime position?

� yes � no

Q.4 Is the visicooler in a working condition?

� Working � Not working

Q.5 Is the visicooler light working?

� yes � no

Q.6 Is the product of coca cola available?

� yes � no

Q.7 Is the product of coca cola in different size available?

� Yes � No

Q.8 Which drink do people prefer in coca cola product in your retail

outlet?



� Sprite � Mazza

� coke � kinley soda

� kinley water � others

Q.9 Do consumer of Coca cola settles for product of

competitive product?

� yes � No

Q.10 Which product of competitive product are choosen over

coca cola product?

� Mirinda � Slice

� 7up � Dukes

� Bisleri

� QUESTIONNAIRE FOR CONSUMERS

NAME:-

Q.1 GENDER OF THE CONSUMER?



� MALE � FEMALE

Q.2 AGE GROUP OF THE CONSUMER?

� BELOW 15 � 15-25

� 26-35 � 36&above

Q.3 DO YOU PREFER SOFT DRINK?

� YES � NO

Q.4 WHICH BRAND IN SOFT DRINK DO YOU COMMONLY

PREFER?

� COCA COLA � PEPSICO

Q.5 WHICH PRODUCT OF PEPSICO DO YOU GENERALY

CONSUME?

� MIRINDA � PEPSI

� SLICE � 7UP

Q.6 WHICH PRODUCT OF COCA COLA DO YOU GENERALY

CONSUME?

� COKE � SPRITE

� FANTA � MAZZA



Q.7 REASON TO PURCHASE COCA COLA DRINKS?

� BRAND NAME � TASTE

� PACKAGING � PRICE

Q.8 DO THE ADVERTISEMENT OF COLD DRINKS HAVE

INFLUENCED YOU TO BUY?

� Yes � No

Q.9WHICH SOFT DRINK ADVERTISEMENT HAS AN IMPACT

ON YOUTO BUY THAT PARTICULAR DRINK?

� COCA COLA � PEPSI

� SLICE � SPRITE

Q.10 AS A CONSUMER WHAT NEW YOU SUGEST FOR

COCA COLA DRINKS?

………………………………………………………………………

………………………………………………………………………

…………………………………………………………………

16.2 APPENDIX

16.2a ANNEXURE : 1 CASE STUDY

� COCA-COLA CASE STUDY

INTRODUCTION



The Coca-Cola Company has been in operation since 1886.

They use many selling techniques to encourage consumers

to buy their products. The selling techniques the Coca-Cola

Company uses include product development, product

promotion, product differentiation, product pricing and

product enhancement. These selling techniques are of

varying effectiveness and have been adjusted over time to

appeal to changing societies.

PRODUCT DEVELOPMENT

When the Coca-Cola Company first began in the early

twentieth century, the only product it manufactured was

Coca-Cola. Throughout the past 100 years, the Coca-Cola

Company has diversified their range, creating a larger variety

of products to effectively appeal to a wider market. The

Coca-Cola Company has done this partly because Coca-

Cola was originally marketed as thirst-quenching

refreshment, and when society became aware that Coca-

Cola was not really the best drink for quenching your thirst,

the Coca-Cola Company needed to allow for this. To meet

the needs of health conscious consumers, the Coca-Cola

Company developed Pump, a spring water brand. Powerade

appeals to sporty people and ‘Winnie the Pooh’ juice is likely

to appeal to young children.

PRODUCT PROMOTION

Advertising



Throughout the time that the Coca-Cola Company has been

in operation, they have adapted their advertisements to

appeal to and meet the needs of changing societies. One

slogan that is common to many Coca-Cola advertisements is

“Drink Coca-Cola”. This slogan was first used in 1886 and

has remained a part of the Coca-Cola advertising campaign

to this day, which is somewhat indicative of its effectiveness.

The use of the imperative verb ‘Drink’ persuades consumers

to purchase and enjoy the product.

In 1943, during World War II, the Coca-Cola Company

designed a poster advertisement featuring enemy soldiers

enjoying Coca-Cola together. This poster advertisement

communicated the message that Coke breaks down conflict

and brings people together. This message was also

communicated with the slogan “high sign of the friendly

hearted”. This advertisement was effective because it took a

contemporary issue (war) and presented Coke as a solution

to this problem.

The Coca-Cola Company has used sex appeal to sell their

products. One advertisement the company designed

featured a boy and a girl enjoying Coca-Cola together. A

relationship was implied, and the slogan ‘Coke puts you at

your sparkling best!’ implied that drinking Coke somehow

made you more appealing to the opposite sex. The message

that Coke is around during good times was also

communicated.



The aforementioned advertisement is not particularly

effective at promoting and selling Coca-Cola, as informed

consumers can see through the implied message that Coca-

Cola makes you more attractive to the opposite sex. The

advertisement may have been effective in appealing to the

consumers of that time (the advertisement was published

during the 1950s), but for today’s society the advertisement

is too tame. If the Coca-Cola Company wishes to use sex

appeal in their advertising campaigns in future, they need to

adapt their message to suit today’s society. Perhaps they

could recruit real actors to star in their advertisements, rather

than using cartoons, and to appeal to today’s consumers,

have these actors wear less layers of clothing than the

cartoon figures.

PRODUCT DIFFERENTIATION

The unmistakable curved bottle shape has been a part of

Coke’s image since the original glass contour bottle was

designed in 1915, then introduced to the United States in

1916. Back in 1915, soft drink bottles were normally the

same shape no matter what drink they contained – the only

feature to distinguish one brand from another was the label.

Keeping soft drinks cold was typically accomplished by

leaving them in an ice box, which often lead to the label

becoming wet and sliding off. People were then unable to

distinguish between brands. An innovative employee had a

bright idea – what if Coca-Cola had a unique bottle shape?

People could find their favourite soda in the ice box by feel;

the days of confusion would be over.



Evidently, the shape of the bottle Coca-Cola is sold in is a

classic example of effective product differentiation. No other

brand of cola is available in quite the same shaped bottle, so

consumers can instantly recognise the beverage. Also, as

the Coca-Cola bottle shape is so unique and original,

consumers may see it as superior to generic brands that

have a plain, unoriginal bottle shape. The labelling of Coke

products also differentiates them – red, a highly stimulating

colour attracts the consumer’s attention, and the font ‘Coca-

Cola’ is printed in is fancy and more appealing than the

simple, plain fonts generic brands such as ‘You’ll Love Coles

Cola’ use.

PRODUCT PRICING

As has already been established, the Coca-Cola Company

sells a wide range of products (primarily beverages) to

effectively meet the needs of different consumers. The Coca-

Cola Company sells beverages of different sizes, ranging

from individual 375 millilitre bottles to 2 litre bottles.

Sometimes buying the larger bottles of Coke or other Coca-

Cola brand soft drinks involves a significant saving.

Supermarkets may mark down the price of 2 litre bottles, but

leave the price of smaller bottles unchanged. This selling

technique is very successful. Consumers, realising the

saving that can be made by buying the 2-litre bottle of Coke,

are more likely to purchase the larger bottle. As you are

getting more for your money, any informed consumer would

opt for the larger bottle.



PRODUCT ENHANCEMENT

The Coca-Cola Company enhances their product by

developing different Coke products targeted to specific

markets, e.g. Classic Coke to appeal to consumers who like

the original product and Diet Coke to appeal to health

conscious consumers. Making more variety available is a

clever and effective way of appealing to a wider market.

Improved packaging, i.e. bottles and cans (the consumer has

a choice), also enhances the Coke product. The modern

packaging of Coca-Cola Company beverages also has the

advantage of being recyclable – which may attract

consumers who have environmental concerns.

CONCLUSION

The Coca-Cola Company runs a successful marketing

campaign, effectively attracting consumers’ attention to its

products through advertising. The Coca-Cola Company also

employs a range of other effective selling techniques as part

of its marketing campaign, including product development,

product differentiation, product pricing and product

enhancement

16.2b ANNEXURE : 2 ARTICLES

� Coca-Cola sales up 28%

13 Feb 2009, ECONOMIC TIMES



New Delhi: Coca-Cola on Thursday reported a 28% growth

in unit case volumes for India for the October-December

quarter. This is higher than the third quarter when the

company had reported 18% unit case volume growth.

� Coca-Cola India launches 'Fanta Apple'

FEB,ECONOMICS TIMES

HYDERABAD: Beverages major Coca-Cola on Thursday

announced the launch of a new variant for its fruit flavoured

brand Fanta and has roped in Telegu cine-star Genelia

D'Souza as its brand ambassador.

The drink, Fanta Apple, is being launched in a phased-

manner, starting with the southern states of Andhra Pradesh

and Tamil Nadu followed by a national-roll out in the next two

months, Hindustan Coca-Cola Beverages Private Limited

Vice-President (Marketing) Venkatesh Kini told reporters

here.

"Fanta Apple would be retailed across 35,000 outlets in the

two states in the launch phase," HCCBPL Region Vice

President (South) Deepak Kaul said.

The new variant would be available in 200 ml and 300 ml

returnable glass bottles (RGB) priced at Rs 8 and Rs 10

respectively. In addition, it would also be available in a

mobile 500 ml PET pack priced at Rs 22.



� Coca-Cola unit sales rise 18%21 Oct 2008,

ECONOMICS TIMES

NEW DELHI: Riding on an improved route-to-market

strategy, strong marketing and revamped bottling, Coca-Cola

India has reported an 18% increase in More Pictures unit

case volume sales in the July-September quarter over the

previous corresponding quarter.

This is Coca-Cola’s highest growth in unit case volumes

since the pesticide controversy took a huge toll on soft drink

sales 2003 onwards. The Q3 performance caps nine

quarters of consistent growth for the cola company’s Indian

arm.

The results, announced by the soft drink maker’s Atlanta

headquarters last week, (ET has the India numbers),

mentions that brands Coca-Cola and Maaza grew in double

digits in India.

Apart from juices, growth has also come from sparkling

beverages.



The growth has been led by a combination of factors. The

company’s route-to-market strategy for improved stock

management from the manufacturing unit to the market,

setting up depots and servicing them and beefing up its

sales-distribution network is working well while ongoing

investments are being infused in cooling and infrastructure

development and setting up new manufacturing lines.

Initiatives such as the 1.25-litre fridge pack (an industry first)

at Rs 35 and new SKUs across brands, improving

distribution and penetration, tapping new points of sales,

adding key accounts, merchandising and stepping up point-

of-purchase visibility and growth of modern trade which has

boosted PET sales have all contributed to growth.

Additionally, bottling arm Hindustan Coca-Cola Beverages

(HCCB)’s restructuring exercise aimed at buying out excess

capacities of bottles and realigning idle bottling capacities,

which it embarked upon two years back as part of a $250-

million revamp, is nearing completion.

Coca-Cola India President & CEO Atul Singh said: “We

continue to work closely with our bottling partners to take

action to drive sustainable growth.

Our ability to proactively address the rapidly changing

economic environment exemplifies the strength of the Coca-

Cola system.” According to research firm AC Nielsen’s data,

Coca-Cola brands have a huge lead over rival PepsiCo

across categories, as reported by ET earlier.



It was in the third quarter in 2006 that Coca-Cola first

reversed two years of negative quarterly growth, when it had

reported 4% increase in unit case volumes after an over 20%

decline in the corresponding year-ago period. Strategies

such as focus on driving profitability instead of pushing

volumes and splitting up bottling and marketing have borne

fruit.

Globally, Coca-Cola has announced a 14% increase in third

quarter profit compared to last year, driven mainly by

international operations. The quarter saw the company post

eight consecutive quarters of double digit growth.

16.3 BIBLIOGRAPHY



www.cokeiindia.com

www.coca-colaindia.com

www.google.com

www.wikipedia.org

TEXT BOOK:

MARKETING MANAGEMENT: -

1. KOTLER AND KOTLER.

2. MARKETING MMANAGEMENT S.H.H.KAZMI

3. MODERN MARKETING MANAGEMENT P.P.SINGH

&J.N.JAIN

4.STRATEGIC MANAGEMENT ANDERSON VINCZE

the find out the present status of thumps up, coca-cola,

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