Chapter - 1: Coca-Cola
Chapter - 1: Coca-Cola
Chapter – 1
INTRODUCTION
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COCA-COLA
INTRODUCTION
“Coke would rather be long term wiser, than being short term smarter”
Abraham Ninan
Director External Affairs,
Coca-Cola, India
FOUNDED : 1926
INDUSTRY : BEVERAGES
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HISTORY OF COCA-COLA
This 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.
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EARLY GROWTH
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 Texa. 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.
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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.
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WARTIME DEVELOPMENT
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.
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POSTWAR GROWTH
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.
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RECENT DEVELOPMENTS
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 Average’s 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
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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.
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”.
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PEPSI
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
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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.
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CADBURY SCHWEPPES
Cadbury Schweppes are joined force of Cadbury found in 1824 of U.K. and
Schweppes of Ireland founded in 1783. Cadbury Schweppes is unified bussing which
manages the relations his with over 240 franchised bottling operation on Zambia and
Zimbabwe. Cadbury Schweppes has fottlery and partnership operations in 14 countries
around the world.
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.
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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.
Bottlers maintain their production line to coke standard of 600 bottles per
minute.
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Low per capital consumption of soft drink in India may be linked to the
inflated prices of such drinks. But surprisingly it leaves a very low margin for bottler’s
decocanised. Candler had later testified on court that coke contained a very small
proportion of drug without the coke would never have been as popular as it was its
early days. The cocaine was eliminated in 1903, as panicked reaction to the raising
criticism, inflamed by Newspaper allegations that black coke drinkers were attacking
whites.
In 1917, Candler gave almost all of his coke, stock to his children, who sold
out two years later to a syndicate headed by, Atlanta Banker Ernest Woodruff, for $25
million. Woodruff eventually took over and ruled the company to its present glory.
Woodruff died in 1985.
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There are nine brands of coca-cola in India and they are differ in taste,
flavor and also in their colours.
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.
8. SPRITE: - Sprite is a good product at cola and contains at lemon flavor. And
preferred by all age of people.
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9. KINLEY WATER: - Kinley water is a fresh and mineral water and market
competitor of Bisleri and Aquafina.
10. 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.
Thums-Up Youngster.
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SWOT ANALYSIS
STRENGTHS
WEAKNESS
OPPORTUNITIES
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THREATS
1. Stiff competition.
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Chapter- 2
Research Methodology
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At the time of dealing with a new outlet dealer there are mainly four types
of queries are come out from them. These queries or doubts which come
from the side of outlet owners are:
The above doubts of the outlet owners are satisfied by giving such
explanation:
For profitable:
Our products have Good Margin in the range of 7% - 15% , higher than most
of the products you sell.
Our products are well known and have a faster rotation which will result in
higher earnings for you.
We have a wide range of products to offer which will help you cater to larger
number of customers.
We ensure business round the year by activating your outlet and product
promotions
For competitor:
Would you not like to make more Profits?
Our product is usually purchased on impulse and can be bought along with
other products you sell.
There are products sold in nearby outlet that is available in your outlet as
well. So why not soft drinks.
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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.
1. Primary data
2. Secondary data
But here, only surveys method of data collection is preferred which is very
suitable to reach the researcher motto.
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I. Sampling unit: The retailer of Grocery shop, general store, betel shop, and
medicine store was selected from different places of Kanpur.
II. Sampling size: 150 Outlets.
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.
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ANALYSIS OF DATA
SURVEY ANALYSIS
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Data Analysis
Options Respondents %
Yes 77 96.25
No 03 3.75
No
4%
Do you drinks soft drinks?
Yes
96%
INTERPRETATION:
The above chart shows that 96 % of respondents are drinks soft drinks and 4 % of
respondents are not drinks soft drinks .
Options Respondents %
Coca cola 18 23.37
Sprite 51 66.23
Other 08 10.38
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Sprite
66%
INTERPRETATION:
The above chart shows that 66 % of respondents are prefer to drinks sprite and 23 % of
respondents are prefer to drinks coca cola and 11 % are prefer to drinks other soft drinks .
3.How often the product coca cola comes to your mind whenever you prefer soft drinks?
Options Respondent %
s
Never 9 11.68
Very rare 12 15.58
Very often 15 19.48
Every time 29 37.66
At time 12 15.58
INTERPRETATION:
The above chart shows that 38 % of respondents are prefer to drinks coca cola Every time and
19 % of respondents are prefer to drinks coca cola very often and 16 % of respondents replied
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that they are prefer to drinks coca cola at time and 15 % respondents replied that they drinks
coca cola very rare and 12 % respondents replied that they never thing to drinks coca cola .
4. How often the product Sprite comes to your mind whenever you prefer soft drinks ?
Options Respondent %
s
Never 03 3.89
Very rare 08 10.38
Very often 05 6.49
Every time 49 63.63
At time 12 15.58
Every time
64%
INTERPRETATION:
The above chart shows that 64 % of respondents are prefer to drinks sprite Every time and 6
% of respondents are prefer to drinks sprite very often and 16 % of respondents replied that
they are prefer to drinks sprite at time and 10 % respondents replied that they drinks sprite
very rare and 4 % respondents replied that they never thing to drinks sprite .
Options Respondents %
100 ml 7 9.09
200 ml 67 87.0
400 ml 3 3.89
750 ml 0 0
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200 ml
87%
INTERPRETATION:
The above chart shows that 87 % of the respondents are prefer to drinks 200 ml quantity most
and 9 % respondents are prefer to drinks 100 ml quantity and 4 % of the respondents are
prefer to drinks 100 ml quantity and no one have respondents to prefer to drinks 750 ml
quantity most .
6.Do you know the coca cola company introduce splash bar that provide coke and sprite
rs 5 100 ml ?
Options Respondents %
Yes 34 48.05
No 43 55.84
INTERPRETATION:
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The above chart shows that 46 % of respondents are know that coke company introduce
splash bar in Bokaro and Dhanbad area and 54 % of respondents are not know that the coke
company have introduce splash bar .
Options Respondents %
Excellent 17 50
Best 7 20.58
Average 8 23.52
Equal to glass 2 5.8
bottle
Equal to glass
bottle How was the taste of the product
6%
Average
23% Excellent
50%
Best
21%
INTERPRETATION
The above chart shows that 50 % of respondents are thing that the taste of splash bar product
are Excellent and 23 % of respondents are thing that the taste of splash bar product are
average and 21 % of respondents are thing that the taste of splash bar product are best and 6 %
of respondents are thing that the taste of splash bar product are equal to glass bottle .
Options Respondent %
s
Price 6 17.64
Taste 12 35.29
For refreshment 14 41.17
Time pass 0 0
To avoid local brand 2 5.8
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INTERPRETATION
The above chart shows that 41 % of respondents view of splash bar is to drinks for
refreshment and 35 % of respondents view for splash bar is to drinks for taste and 18 %
respondents are views as a price and 6 % are view as to drinks to avoid local brand .
9. Do you feel one cup is sufficient to refresh you or satisfy your need ?
Options Respondents %
Yes 15 44.11
No 19 55.88
Yes
No 44%
56%
INTERPRETATION
The above chart shows that 44 % of respondents are feel one cup of 100 ml is sufficient to
refresh and satisfy their need and 56 % of respondents are feel one cup of 100 ml is not
sufficient to refresh and satisfy their need .
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10.Do you thing that one more product should be added in splash bar ?
Options Respondents %
Yes 21 61.76
No 13 38.23
No
38%
Yes
62%
INTERPRETATION
The above chart shows that 62 % of respondents are thing one more product of coca cola are
added in splash bar in future and 38 % of respondents are thing the present splash bar is
sufficient .
11. Which product do you thing that should be added in splash bar ?
Options Respondents %
Thums up 4 19.04
Fanta 6 28.57
Limca 11 52.38
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Limca
52% Fanta
29%
INTERPRETATION
The above chart shows that 52 % of respondents are thing limca should be added in splash bar
in future and 29 % of respondents are thing fanta should be added in splash bar in future and
19 % respondents are thing thums up should be added in splash bar in future in splash bar .
Excellent 22 64.70
Best 7 20.58
Average 5 14.70
Poor 0 0
Average
15%
Best
20%
Excellent
65%
INTERPRETATION
The above chart shows that 65 % of respondents view of splash bar is excellent and 20 %
respondents of view of splash bar is best and 15 % of respondents view of splash bar is
average .
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13. Would you prefer to drinks when coca cola and sprite is available in rs 5 ?
Options Respondents %
Daily 5 6.49
Weekly basis 65 84.41
Month basis 7 9.09
Weekly basis
84%
INTERPRETATION
The above chart shows that 84 % of respondents prefer to drinks coca cola and sprite weekly
basis when price is rs 5 and 7 % of respondents prefer to drinks coca cola and sprite daily
when price is rs 5 and 9 % are respondents prefer to drinks coca cola and sprite month basis
when price is rs 5
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It reflects my
attitude Price Sales
It give me 3% 4% It acts as a
vitality and
refreshment
energy
33%
4%
It satisfied your
basic thirst
24% It provides
enjoyment
20%
INTERPRETATION
The above chart shows that 24 % of respondents purchases soft drinks to satisfied their basic
thirst and 33 % of respondents to drinks soft drinks acts as a refreshment and 20 %
respondents to drinks soft drinks for enjoyment and 12 % of respondents to consumption soft
drinks for test and 4 % of respondents to consumption soft drinks for price and vitality &
energy and 3 % consumption soft drinks for attitude
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OBSERVATION
1. I visited about 150 outlets out of which 20% gold, 40% considered diamond & 40%
considered silver outlets.
2. Out of 150 shops covered in different areas, I focused on covering different shops
according to location, so that I can know where coca-cola products have the best penetration.
Among the shop covered, 17% were on the chauraha, 35% were on the main road, 28% in the
market and 20% were near a residential area.
3. I assigned the various shops covered into different categories. The various categories
covered were Grocery, Confectionary, Bakery, Juice Shops, Ice Cream parlors, Restaurant,
Food Joint, P.C.O, Dairy, and Pan Shops.
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CHAPTER – 3
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CONCLUSION
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FINDINGS
Coca-cola is market leader and pepsi is the market challenger in the whole market where i
have surveyed.
From the coca-cola products thums up and the pepsi products dew is the highest selling in
the market.
In some areas like naveen market the supply of pepsi is better than coca-cola.
In mineral water category aquafina has more mkt share than kinley.
I have found that a retailer gives more prefence to the coca-cola products like thums-up,
Sales graph have gone up in the outlets where the co has installesd coolers outside the
outlet.
The cos new concept of presell is doing good as the retailers now gets what he wants.
According to a survey 80% of retailers sounded positive for presell while balance 20% did
not.
The new product minute maid did had market acceptance though it was placed well.
at times retailers complains that they do not get the company’s actual scheme.
The response time from the co during peak season is fairly high compared to off season in
case of retailers.
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Distributors have not maintained proper stock so that retailers do not get all the products
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SUGGESTION
o Distribution system should improve in the areas like naveen market and gwaltoli.
o Overall services should be improved for getting more sale and to be the market leader.
o The sales executive should make only the commitments which he can keep or fulfill so
o Florescent board displaying location and their distances on road should be used having
coca-cola branding.
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CHAPTER – 4
QUESTIONEAR &
APPENDIX
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QUESTIONNAIRE
Occupation
o Student
o Business
o Government
o House wife
o Job
Annual Income
o Less than 1.5 lakh
o 1.5lakh - 5 lakh
o 5 lakh - 9 lakh
o 9 lakh and above
3. How often the product coca cola comes to your mind whenever you prefer soft drinks?
o Never
o Very rare
o Very often
o Every time
o At time
4. How often the product sprite comes to your mind whenever you prefer soft drinks?
o Never
o Very rare
o Very often
o Every time
o At time
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6. Do you know the coca cola company introduces Splash Bar that provides coke and
sprite Rs 5 of 100 ml?
o Yes
o No
9. Do you feel one cup is sufficient to refresh your or satisfy your need?
o Yes
o No
10. Do you thing that one more product should be added in splash bar?
o Yes
o No
11. Which product do you thing that should be added in splash bar?
o Thums up
o Fanta
o Limca
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13. Would you prefer to drinks when coca cola and sprite is available in Rs 5?
o Daily
o Weekly basis
o Month basis
o It acts as a refreshment
o It provides enjoyment
o It test very good
o It satisfied your basic thirst
o It gives me vitality and energy
o It reflects my attitude
o Price
15. Do you suggest any thing for the promotion of the Splash Bar product?
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REFRENCES
INTERNET:
www.cokeiindia.com
www.coca-colaindia.com
www.oligopolywatch.com
www.superbrand.com
MATERIAL USE:
PRESENTOR.
E.D.S (EVERY DEALER SURVEY) DETAIL.
QUESTIONAIRE.
TEXT BOOK:
MARKETING MANAGEMENT: -
1.KOTLER AND KOTLER.
2.RAMASWAMI.
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