Swadesh Dissertation Project Report
Swadesh Dissertation Project Report
on
“A Study On Customer Perception Towards Coca Cola”
Submitted By:
SWADESH BEHERA
22MBA012
MBA [2022-2024]
RAVENSHAW UNIVERSITY
Assistance Professor,
Ravenshaw University
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Declaration
SWADESH BEHERA
MBA(2022-2024)
University Roll No :- 22MBA012
RAVENSHAW UNIVERSITY
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Certificate
I am pleased with his project work & I wish him a great success in
future.
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ACKNOWLEDGEMENT
I, once again thank to all those who have been connected with my
venture.
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TABLE OF CONTENT
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EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the
history and current scenario of the Coca-Cola Company globally and locally.
The first part of the study takes us through the present state of affairs of the
beverage industry and Coca-Cola Company globally.
The report contains a brief introduction of Coca Cola Company and Coca-Cola
India and a detailed view of the tasks, which have been undertaken to analyze
the market of Coca-Cola i.e. we have performed Competitive, PESTLE and
SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of
Coca-Cola India in order to identify areas of potential growth for Coca-Cola.
We have also given a brief description of Trends and Forces that are affecting
Coca-Cola Company globally.
The main objective of this project report is to analyze and study in efficient way
the current position of Coca- Cola Company. The study also aims to perform
Market Analysis of Coca-Cola Company & find out different factors effecting
the growth of Coca-Cola. Another objective of the study was to perform
Competitive analysis between Coca-Cola and its competitors. Apart from these
objectives this study is also conducted to understand the Customer preferences
towards various Coca-Cola products.
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Chapter-1
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1. INTRODUCTION
MARKETING RESEARCH:-
Marketing research is the function that links the consumer, customer and public to the
marketer through information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing performance;
and improve understanding of marketing as a process. Marketing research specifies the
information required to address these issues, designs the methods for collecting information,
manages and implements the data collection process, analyzes and communicates the findings
and their implications.
-Palmer (2000
INTRODUCTION TO COCA-COLA
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Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer, marketer and distributor of non-alcoholic beverage concentrates and
syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates
and syrups to bottling and canning operators, distributors, fountain retailers and
fountain wholesalers. The Company’s beverage products comprises of bottled and
canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder
products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca- Cola Company began building its global network in the 1920s.
Now operating in more than 200 countries and producing nearly 400 brands, the
Coca-Cola system has successfully applied a simple formula on a global scale:
“Provide a moment of refreshment for a small amount of money- a billion times a
day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and pervasive production and distribution system in the world. More than anything,
that system is dedicated to people working long and hard to sell the products
manufactured by the Company. This unique worldwide system has made The Coca-
Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,
from Montreal to Moscow, Coca-Cola, more than any other consumer product, has
brought pleasure to thirsty consumers around the globe. For more than 115 years,
Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers
through a worldwide system of superior brands and services, thus increasing brand
equity on a global basis. They aim at managing their business well with people who
are strongly committed to the Company values and culture and providing an
appropriately controlled environment, to meet business goals and objectives. The
associates of this Company jointly take responsibility to ensure compliance with
the framework of policies and protect the Company’s assets and resources
whilst limiting business risks.
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Chapter-2
2. INDUSTRY PROFILE
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A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods
(CPG) are products that have a quick turnover and relatively low cost. Consumers
generally put less thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many
players had been facing severe problems on account of increased competition from
small and regional players and from slow growth across its various product categories.
As a result, most of the companies were forced to revamp their product, marketing,
distribution and customer service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian
customer witnessed an increasing exposure to new domestic and foreign products
through different media, such as television and the Internet. Apart from this, social
changes such as increase in the number of nuclear families and the growing number of
working couples resulting in increased spending power also contributed to the increase
in the Indian consumers' personal consumption. The realization of the customer's
growing awareness and the need to meet changing requirements and preferences on
account of changing lifestyles required the FMCG producing companies to formulate
customer-centric strategies. These changes had a positive impact, leading to the rapid
growth in the FMCG industry. Increased availability of retail space, rapid urbanization,
and qualified manpower also boosted the growth of the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service
formats of the FMCG industry by focusing on rural markets, direct distribution,
creating new product, distribution and service formats. The FMCG sector also received
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a boost by government led initiatives in the 2003 budget such as the setting up of
excise free zones in various parts of the country that witnessed firms moving away
from outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they generally
sell in large numbers and so the cumulative profit on such products can be large.
Unlike some industries, such as automobiles, computers, and airlines, FMCG does not
suffer from mass layoffs every time the economy starts to dip. A person may put off
buying a car but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of
global market dip, because they generally satisfy rather fundamental, as opposed to
luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth
largest sector in the Indian Economy and is worth Rs.93000 cr. The main contributor,
making up 32% of the sector, is the South Indian region. It is predicted that in the year
2010, the FMCG sector will be worth Rs.143000 cr. The sector being one of the
biggest sectors of the Indian Economy provides up to 4 million jobs. (Source:
HCCBPL, Monthly Circular)
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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.
BEVERAGES
NON-
ALCOHOLIC
ALCOHOLIC
NON-
CARBONATED
CARBONATED
BEVERAGES IN INDIA
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 behavioural 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.
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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.
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Chapter-3
3. COMPANY PROFILE
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MISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
People: Be a great place to work where people are inspired to be the best they can
be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
WINNING CULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality.
LIVE OUR VALUES :
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Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future.
Collaboration: Leverage collective genius.
Integrity: Be real.
Accountability: If it is to be, it's up to me.
Passion: Committed in heart and mind.
Diversity: As inclusive as our brands.
Quality: What we do, we do well.
FOCUS ON THE MARKET:
Focus on needs of our consumers, customers and franchise partners.
Get out into the market and listen, observe and learn.
Possess a world view.
Focus on execution in the marketplace every day.
Be insatiably curious.
WORK SMART:
Act with urgency.
Remain responsive to change.
Have the courage to change course when needed.
Remain constructively discontent.
Work efficiently.
BE THE BRAND:
HISTORY OF COCA-COLA
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical
Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca
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wine called Pemberton's French Wine Coca. He may have been inspired by the
formidable success of Vin Mariani, a European cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French
Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8,
1886. It was initially sold as a patent medicine for five cents a glass at soda fountains,
which were popular in the United States at the time due to the belief that carbonated
water was good for the health.[9] Pemberton claimed Coca-Cola cured many diseases,
including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.
Pemberton ran the first advertisement for the beverage on May 29 of the same year in
the Atlanta Journal.
By 1888, three versions of Coca-Cola — sold by three separate businesses — were on
the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering
from an ongoing addiction to morphine, Pemberton sold the rights a second time to
four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H.
Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling
his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the
other two manufacturers could continue to use the formula. So, in the summer of
1888, Candler sold his beverage under the names Yum Yum and Koke. After both
failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888,
in order to force his two competitors out of the business. Candler purchased exclusive
rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker.
However, in 1914, Dozier came forward to claim her signature on the bill of sale had
been forged, and subsequent analysis has indicated John Pemberton's signature was
most likely a forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the
current corporation), and in 1910 Candler had the earliest records of the company
burned, further obscuring its legal origins. By the time of its 50th anniversary, the
drink had reached the status of a national icon in the USA. In 1935, it was certified
kosher by Rabbi Tobias Geffen, after the company made minor changes in the
sourcing of some ingredients.
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Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor
wall advertisement was painted in the same year as well in Cartersville, Georgia. Cans
of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg,
Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A.
Biedenharn. The original bottles were Biedenharn bottles, very different from the
much later hobble-skirt design that is now so familiar. Asa Candler was tentative
about bottling the drink, but two entrepreneurs from Chattanooga, Tennessee,
Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so
persuasive that Candler signed a contract giving them control of the procedure for
only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became
the site of the first Coca-Cola bottling company. The loosely termed contract proved
to be problematic for the company for decades to come. Legal matters were not
helped by the decision of the bottlers to subcontract to other companies, effectively
becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately
at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly
upset stomach.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula
of the drink with "New Coke". Follow-up taste tests revealed that most consumers
preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management
was unprepared for the public's nostalgia for the old drink, leading to a backlash. The
company gave in to protests and returned to a variation of the old formula, under the
name Coca-Cola Classic on July 10, 1985.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter
of 2005 they planned to launch a Diet Coke product sweetened with the artificial
sweetener sucralose, the same sweetener currently used in Pepsi One. On March 21,
2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a
blend of aspartame and acesulfame potassium. In 2007, Coca-Cola began to sell a
new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc,
marketed as "Diet Coke Plus”. On July 5, 2005, it was revealed that Coca-Cola would
resume operations in Iraq for the first time since the Arab League boycotted the
company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-
Cola." The word "Classic" was truncated because "New Coke" was no longer in
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production, eliminating the need to differentiate between the two. The formula
remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-
ounce bottles sold in parts of the southeastern United States. The change is part of a
larger strategy to rejuvenate the product's image. In November 2009, due to a dispute
over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves
with Coke and Diet Coke.
In 2009, the company generated revenues of $31 billion with $6.8 billion net income.
An increased consumer preference for healthier drinks has resulted in slowing growth
rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78%
of KO’s sales. KO’s profits are also vulnerable to the volatile costs for the raw
materials used to make drinks - such as the corn syrup used as a sweetener, the
aluminium used in cans, and the plastic used in bottles. Furthermore, slowing
consumer spending in Coke's large North American market compounds the challenge
of increasing costs and a weak economic environment. Finally, Coca-Cola earns
approximately 75% of revenue from international sales, exposing it to currency
fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD).
In 2009, the company generated revenues of $31 billion with $6.8 billion net income.
An increased consumer preference for healthier drinks has resulted in slowing growth
rates for sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78%
of KO’s sales. KO’s profits are also vulnerable to the volatile costs for the raw
materials used to make drinks - such as the corn syrup used as a sweetener, the
aluminium used in cans, and the plastic used in bottles. Furthermore, slowing
consumer spending in Coke's large North American market compounds the challenge
of increasing costs and a weak economic environment. Finally, Coca-Cola earns
approximately 75% of revenue from international sales, exposing it to currency
fluctuations, which are particularly adverse with a stronger U.S. Dollar (USD).
Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD
market is growing quickly, the traditional CSD market is still large in terms of both
revenues and volume and highly lucrative. The size and variety of KO’s offerings in
the CSD category, coupled with the unparalleled brand equity of the Coca-Cola
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trademark, has allowed KO to maintain its share of this important market. KO has
also responded to consumers’ changing tastes with new, non-CSD product launches
and acquisitions such as that of Glaceau in 2007. Strong international growth has also
more than offset a weak domestic market.
On February 25, Coca-Cola Company announced its plan to buy Coca-Cola
Enterprises (CCE) for $12.3 million.[7] Since spinning of Coca-Cola Enterprises
(CCE) 24 years ago, the soft drink market has changed dramatically with consumers
buying fewer soft drinks and more non-carbonated beverages, such as Powerade and
Dasani water. Under the new deal, Coca-Cola Company will take control of the
bottler's North America operations, giving the company control over 90% of the total
North America volume. In return, Coca-Cola Enterprises will take over Coke's
bottling operations in Norway and Sweden, becoming a European-focused producer
and distributor.
In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice
company, OAO Nidan Juices. The company is 75% owned by a private equity firm in
London and 25% by its Russian founders and controls 14.5% of the Russian juice
market. If successful, the purchase would add to Coca-Cola's 20.5% market share,
passing Pepsi's 30% market share. The Russian juice market is estimated to be $3.2
billion dollars, and estimates of Nidan's purchase price are between $560-$620
million.
In April 2010, Coca-Cola Company purchased a majority share of Innocent, the
British fruit smoothie maker. Last year the company bought an 18% share of the
company for more than $45 million, and recent purchases of additional shares
increased Coke's stake to 58%.
In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS)
$715 million for the continued right to sell their products following the company's
acquisition of Coca-Cola Enterprises (CCE). The deal covers the next 20 years with
an option to renew for an additional 20 years.
In 2008 and 2009, the global economy has fallen into a recession. Not just the United States
but countries from all over the world have felt the impacts of the 2008 Financial Crisis. This
may be a problem for Coke, which derives approximately 75% of its sales from outside North
America. Still, the company has positioned itself well in international markets both
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organically and through acquisitions, such as that of Chinese juice maker Huiyuan for $2.4
billion. However the company was unsuccessful with its purchase of Huiyuan as it broke
antitrust laws in China. On March 5, 2010, Coke's CEO said that emerging markets are
bouncing back quicker than more developed markets.
74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it
particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been
negatively affected by concerns about health and wellness. This is true across most of KO's
markets. There has been an increase in the number of regulations regarding CSD in the
United States in response to the heightened desire for healthy food consumption.
In 2006, many state public school systems banned the sale of soft drinks on their campuses.
The Centre for Science and Public Interest proposed that a warning label be placed on all
beverages containing more than 13g of sugar per 12-oz serving. This proposal would affect
all non-diet, full calorie drinks produced by KO. These factors have driven a shift in
consumption away from CSD to healthier alternatives, such as tea, juices, and water.
Within the CSD segment consumers have been moving away from sugared drinks, opting
instead for diet beverages, which do not generally contain any sugar or calories.
Though KO has been somewhat slow to respond to this shift in consumer preferences, it has
recently begun to increase its development of both diet CSD and non-CSD beverages. KO is
faced with the task of balancing the risk of new innovations with the low growth rates of
established brands, a predicament for manufactures throughout the beverage industry.
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believes that by combining production and distribution operations the company will have
enhanced its ability to quickly respond to changing market conditions. In KO's 2007 Q3
Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI)
for double-digit volume growth in that country. Additionally, KO has signed new agreements
with many of its bottlers which allow them to distribute drinks produced by other companies.
For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink tea
made by Ferolito, Vultaggio & Sons, an American iced-tea company. Isdell sees these
agreements as another way of taking advantage of the rapidly growing non-CSD market.
In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is emblematic
of the bottled water industry as a whole. In August 2009, the Wall Street Journal reported that
sales of bottled water had fallen for the first time in five years. The combination of the
recession and upper class consumers' increased environmental consciousness has lead many
customers to cut back on bottled water in favour of tap water and reusable containers.
Follow
ing this trend, at least one town in Washington state and one in Australia have outlawed the
selling of bottled water within their city limits. In 2008, bottled water was the third most
popular beverage (behind soda and milk), but compared to 2007, Americans consumption
declined for the first time, down to 8.7 billion gallons from 8.8 billion gallons. Although this
is a seemingly small decrease, industry experts don't expect bottled water to bounce back
anytime soon.
Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although
the company is based in the US, KO derives about 75% of its operating income from outside
United States. Because of this, the company is very sensitive to the strength of the dollar. As
foreign currencies weaken relative to the dollar, goods sold in foreign markets are suddenly
worth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as it
did in the second half of 2008 and 2009), it has a negative effect on KO's earnings. Coca-
Cola executives expect currency fluctuations to adversely affect 3Q09 operating income by
10-12% and 4Q09 operating income by high single digits.
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KO has broad exposure to foreign currencies and actively hedges a large portion of these to
avoid wide swings in earnings from currency fluctuations. Although this hedging insulates
from the potential downside of a strengthening dollar, it also limits larger gains from drastic
downswings in the dollar's value.
The Coca-Cola Company’s profitability can be affected both directly and indirectly by the
costs of various production inputs. KO itself is responsible for purchasing the raw materials
used to make its concentrates and syrups. Variations in the prices for these goods can affect
the company’s total cost of production as well as its profit margins. Changes in the
production costs of bottlers can also impact KO’s profitability, though in a more indirect way.
If the raw materials necessary for bottling become more expensive, the bottler may be forced
to drastically raise prices to compensate.
S
uch a price increase would likely hurt KO, given the competitive nature of the non-alcoholic
beverage industry, and provide a possible incentive for consumers to switch to other
companies’ beverages.
Aluminium, corn, and PET resin are three examples of such production goods used by
bottlers that could have significant bearing on the Coca-Cola Company’s profit margins. In
2007, the prices of these commodities rose drastically with general commodities bubble and
dramatically pressured margins. They receded in 2008, but the possibility of another
significant rise in Commodities represents a constant threat to profits.
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Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced
to close down its operation by a socialist government in the drive for self sufficiency.
After 16 years of absence, coca cola returned to India and witnessed a different
culture and economic platform. During their absence, Parle brothers introduced a new
type of cola called THUMS UP. Along with, they also formulated a lemon flavoured
drink, LIMCA, and mango flavoured, MAAZA. In 1993, coca cola bought the whole
Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed
that with the tried and tested products of Parle they will be able to regain their throne
in the Indian soft drink market. Pepsi having a 6 year head start helped revive the
demand for global cola but it was not easy for the soft drink giant (coca cola) to return
to India. Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the ‘American’ way of life, which turned out
to be a mistake.
Coca-Cola invested heavily in India for the first five years, which got them credit of
being one of the biggest investor in the country; however, their sales figures were not
so impressive. Hence, they had to re-think their market strategies. Coca-Cola learned
from Hindustan Lever that reducing their will result in more turnover, hence leading
to profit. They launched an extensive market research in India. They ascertained that
in India 3 As must be applied; Affordability, Availability and Acceptability. Coca-Cola
learnt that they were competing with local drinks such as “Nimbu Pani”, “Narial
Pani”, “Lassi” etc. and reached to a conclusion that competitive pricing was
unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.
Further, they had different advertising campaigns for different regions of the country.
In the southern part, their strategy was to make Bollywood or Tamil stars to endorse
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their products. In various regions they tried portraying coca cola products with
different regional food products. One of the most famous ad campaigns in India was
‘Thanda Matlab Coca-Cola’; they featured the same quote with different regional
entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market
share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33%
in Packaged water Segment, compared to its arch rival, Pepsi. Diversifying their
product range and having a competitive pricing policy, they have regained their
throne. With virtually all the goods and services required to produce and market Coca-
Cola being made in India, the business system of the Company directly employs
approximately 6,000 people, and indirectly creates employment for more than
125,000 people in related industries through its vast procurement, supply, and
distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the
Company, with another 25 being owned by franchisees. That apart, a network of 21
contract packers manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate
the narrow alleyways of Indian cities – constantly keep our brands available in every
nook and corner of the Country’s remotest areas.
COCA-COLA:-
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated
its departure. Coca-Cola made its return to the country in 1993 and made significant
investments to ensure that the beverage is available to more and more people, even in remote
and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho
Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In
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2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky
rocketed the brand to make it India’s favourite soft drink brand.
LIMCA:-
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and
lemoni bite combined with the single minded proposition of the brand as the provider of
“Freshness”.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” +
“Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the
original thirst choice of millions of customers for over 3 decades.
THUMS UP:-
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up
is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude.
This brand clearly seeks to separate the men from the boys.
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200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
500ml, 1000ml 2.25L, 500ml, 100ml
SPRITE:-
Sprite a global leader in the lemon lime category is the second largest sparkling beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a
true teen icon.
FANTA:-
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the moment. This positive
imagery is associated with happy, cheerful and special times with friends.
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MINUTE MAID PULPY ORANGE:-
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that
eliminated 80% of the water in the orange juice, forming a frozen concentrate that when
reconstitute created orange juice. They branded it Minute Maid a name connoting the
convenience and the ease of preparation. Minute Maid thus moved from a powdered
concentrate to the first ever orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.
MAAZA:-
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lover’s first choice.
KINLEY:-
The importance of water can never be understated, Particularly in a nation such as India
where water governs the lives of the millions, be it as a part of everyday ritual or as the
monsoon which gives life to the sub continent. Kinley water comes with the assurance of
safety from the Coca-Cola Company.
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Available in PET 500ml and 1000ml.
Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is
available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major
metros in India.
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Chapter-4
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RESEARCH DESIGN
The study was aimed to perform Market Analysis of Coca-Cola Company & find out
different factors effecting the growth of Coca-Cola.
Another objective of the study was to perform Competitive analysis between Coca-
Cola and its competitors.
This study basically tries to discover the current position of Coca cola in the market. It also
tries to discover the preferences of the customers when posed with a choice between Coca-
Cola and Pepsi. It is primarily directed to the general public but was done only in Cuttack and
Bhubaneswar.
RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.
Exploratory Research.
Descriptive Research.
Casual Research.
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1. Exploratory Research:-
The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.
2. Descriptive Research:-
The objective of descriptive research is to describe things, such as the market potential for
a product or the demographics and attitudes of consumers who buy the product.
3. Casual Research:-
The objective of casual research is to test hypothesis about casual and effect relationships.
Based on the above definitions it can be established that this study is a Descriptive
Research as the attitudes of the customers who buy the products have been stated.
Through this study we are trying to analyse the various factors that may be responsible
for the preference of Coca-Cola products.
SOURCES OF DATA
The data has been collected from both primary as well as secondary sources.
PRIMARY DATA:-
The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in
this study.
The methods that have been used to collect the primary data are:-
Questionnaire
Personal Interviews
SECONDARY DATA:-
It is defined as the data collected earlier for a purpose other than one currently being
pursued.
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As a student I have scanned lot of sources to get an access to secondary data which
have formed a reference base to compare the research findings. Secondary data in this
study has provided an insight and forms an outline for the core objectives established.
The various sources of secondary data used for this study are:-
Newspapers.
Magazines.
Text books.
Marketing reports of the company.
Internet.
The primary tool for the data collection used in this study is the respondent’s response to
the questionnaire given to them. The various research measuring tools used are:-
Questionnaire.
Personal interview.
Tables.
Percentages.
Pie-charts.
Bar-charts.
Column charts.
SAMPLING DESIGN
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SAMPLE SIZE:-
SAMPLING TOOL:-
Questionnaire was used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.
FIELD WORK:-
The questionnaires were given to the respondents to fill in order to get their
feedback.
Questions were read out to the respondents and the answers were noted.
The main purpose of this study is get idea about the preference of the customers towards
various Coca-Cola products. But there are certain factors which affects this study they are as
follow:
Since the sampling procedure was judgmental, the sample selected may not be
true representative of the population.
Economic and market conditions are very unpredictable (Present and future).
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The study was confined to Cuttack and Bhubaneswar due to which the result
cannot be applied universally.
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Chapter-5
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DATA ANALYSIS
AND
INTERPRETATION
110
90
70
50
30
10
Below 20 20-30 30-40 40-50 above 50
Number of respon- 10 159 6 1 1
dents
Fig-1
Male
Female
63%
Fig-2
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AGE GROUP & GENDER:
From Fig-1, we can comprehend that 90% of total respondents belong to the age
group of 20-30. This is because most of the consumers that prefer or consume
Coca-Cola products belong to this age group. About 6% belong to age group
below 20 and 3% belong to age group of 30-40. From Fig 2, we come to know
that the gender ratio of the total respondents is almost 2:1 (male: female).
Fig-3
81%
Fig-4
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SOFT DRINK CONSUMPTION & EXPENDITURE:
From Fig-3, we interpret that about 48% of the total respondents consume soft
drinks rarely or once a week. About 35% respondents consume soft drinks twice
or thrice a week and only 18% consumes soft drinks every day.
From Fig-4, we interpret that about 81% of the respondents spend only Rs. 50-
100 a week on Coca-Cola products, which is very low as compared to the global
scenario. This creates a potential growth market for Coca-Cola India. About
12% spends from 100-150 a week & 7% spend above 150.
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Purchasing Portal Preference
110
90
70
50
30
10
Fig-5
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Occasions/Reasons for consumption
Just like
that
Parties
Cinemas
Picnics
Festivals
10 30 50 70 90 110
Festivals Picnics Cinemas Parties Just like that
Series1 3 4 26 40 104
Number of respondents
Fig-6
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Soft drink preference
75
65
55
Number of responses
45
35
25
15
Fig-7
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Opnion About Coca-Cola Products
Bad
Below Satisfactory
Satisfactory
Good
Excellent
0 20 40 60 80 100 120
NO. OF RESPONDENTS
Fig-8
20% 14%
27% 40%
Fig-9
OPINION ABOUT COCA-COLA PRODUCTS
& PRODUCTS EXPECTED BY CONSUMERS:
From Fig-8, we infer that though the respondents are more than satisfied by the
Coca-Cola product range they would still like the company to introduce new
drinks. From Fig-9, we conclude that about 40% would like to see a new fruit
drink being added to the product basket, 26% want energy drinks, 20%
alcoholic drinks and only 14% want another fizzy drink. Majority of the people
wanting to see a fruit drink is mainly because people are more health conscious
now and want to manage their calorie intake.
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Quantity preference
85
75
65
55
Number of responses
45
35
25
15
5
200-250 ml 300 ml Can 500 ml Pet 1 litre 2 litre
Glass bottle bottle
Series1 47 33 83 5 9
Fig-10
QUANTITY PREFERENCE:
From Fig-10, we infer that about 47% of respondents prefer to purchase PET
bottle of Coca-Cola Products. About 27% prefer to purchase glass bottles, 19%
prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola.
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Branding
Pepsi products
Coca-Cola products
10 30 50 70 90 110
Coca-Cola products Pepsi products
Series1 109 68
NO. OF RESPONDENTS
Fig-11
Pricing
120
100
Series1
80
60
40
20
0
Coca-Cola products Pepsi products
Fig-12
BRANDING & PRICING:
From Fig-12, we infer that about 62% of the respondent considers the pricing of
Coca-Cola much more reliable than that of Pepsi. About 38% respondents think
that Pepsi have better pricing than that of Coca-Cola.
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Quality
140
120
100
80 Series1
60
40
20
0
Coca-Cola products Pepsi products
Fig-13
TASTE
Pepsi products
Coca-Cola products
10 30 50 70 90 110 130
Coca-Cola products Pepsi products
Series1 130 47
NO. OF RESPONDENTS
Fig-14
QUALITY & TASTE:
From Fig-13 & 14, it’s clear that Coca-Cola products have better taste and
quality than that of Pepsi. About 73% respondents consider that Coca-Cola
products have very good quality and taste. 27% respondents consider Pepsi
products have better taste and quality.
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Availability
Pepsi products
Coca-Cola products
Number of respondents
Fig-15
Satisfaction
Pepsi products
Series1
Coca-Cola products
Fig-16
AVAILABILITY & SATISFACTION:
From Fig-15, it’s clear that there is slight difference between the availability of
products of Coca-Cola and Pepsi. About 51% respondents think that Coca-Cola
products are much easily available in the market.49% consider that availability
of Pepsi products is more in the market.
About 70% of respondents are satisfied with the Coca-Cola products while as
30% respondents are satisfied with the Pepsi products as shown in Fig-16.
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Chapter-6
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SUGGESTIONS
AND
CONCLUSION
SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part of
“Coca-Cola India”. The suggestions are arranged in order of priority, highest first.
Perform a detail demand survey at regular interval to know about the unique needs and
requirements of the customer.
The company should make hindrance free arrangement for its customers/retailers to
make any feedback or suggestions as and when they feel.
The company should focus to bring some more flavors like health drinks and other low-
calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as it has
already entered the energy drink arena with “Burn”.
The company must keep a watch on its primary competitors in market in order to be able
to compete with them.
The company should use new attractive system of word of mouth advertisement to keep
alive the general awareness in the whole market as a whole.
A strong watch should be kept on distributors so that the goodwill of the BRAND
doesn’t get affected.
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CONCLUSION
Though there were certain limitations in the study that was conducted. The sample
allowed for some conclusions to be drawn on the basis of analysis that was done on
the data collected.
The data has clearly indicated that Coca-Cola products are more popular than the
products of Pepsi mainly because of its TASTE, BRAND NAME,
INNOVATIVENESS and AVAILABILITY, thus it should focus on good taste so
that it can capture the major part of the market. The study also indicated that the
consumers are satisfied with the Coca-Cola products and purchase them without any
specific occasions.
In today’s scenario, customer is the king because he has got various choices around
him. If you are not capable of providing him the desired result he will definitely
switch over to the other provider. Therefore to survive in this cutthroat competition,
you need to be the best. Customer is no longer loyal to one brand in today’s scenario,
so you need to be always on your toes.
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BIBLIOGRAPHY
WEBSITES:
www.thecoca-colacompany.com
www.news.bbc.co.uk
www.india-server.com
www.magindia.com
www.coca-colaindia.com
www.wikiinvest.com
www.open2.net
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QUESTIONNAIRE
NAME :-
..............................................................................
GENDER:
a) Male b) Female
What drink comes to your mind when you think of soft drinks?
a) Coca-Cola
b) Pepsi
c) Other products of Coca-Cola
d) Other products of Pepsi
e) Other drinks
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What occasions do you prefer to buy Coca-Cola products?
a) Festivals
b) Picnics
c) Parties
d) Cinemas
e) Just like that
What is your most preferred channel for purchasing Coca-Cola products?
a) Super markets
b) Retails
c) Vendor Machines
d) Pubs & Restaurants
e) Multiplexes
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THANK YOU
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