SUMMER TRAINING REPORT

ON

MARKETING RESEARCH

AT

COCA-COLA PVT LTD.

`Submitted to

MAHARISHI DAYANAND UNIVERSITY

For

Partial Fulfillment of the award of degree of

MASTERS OF BUSINESS ADMINISTRATION

BATCH: 2017-2019

Submitted To: Submitted By:

MR. – Raj Nath Singh Sabir Ali
(Assistant Professor) Roll No-
Registration-

INSTITUTE OF MANAGEMENT & TECHNOLOGY

(Approved by AICTE, and affiliated to M.D.U, ROHTAK)
Tigaon road, near SAI DHAM, Faridabad-121002
 PREFACE
Project report is a part of our curriculum that gives us knowledge about practical work. This also
helped us to understand the practical aspects of the conceptual studies learnt by them in the
Marketing subject. The Project Report presented here is the part of the syllabus of the MBA
degree provided by M.D. University, Rohtak.

Each student pursuing this course is required to submit a particular project on the topic assigned
to him in his course. The essential purpose of this project is to given an exposure and detailed
outlook to the student of the practical concept, which they already studied research. For the
purpose, I was assigned the project for the “Marketing research” in Coco cola private ltd. It is
the matters of great privilege to get make a project for one of the largest organizations of its kind.
.

(Sabir Ali)
 ACKNOWLEDGMENT

I had sincerely expressed my indebtedness gratitude towards my mentor for giving me an opportunity to join this
esteem oorganization for summer trainning.

My summer trainning at COCA COLA Pvt Ltd. of duration has been ouite successful. During my
stay for 8 weeks, I had received full co-operation from empolyees and officers. The practical
visualization of the summer training has helped me to understand a lot of practical things.

In order to acquire myself to the task of the organization and to analyzethem, I me to Mr. M D
SHUKLA the head of the HR department and staff who helped by their kind co-operation and
guidance. During the training they have been giving the practical knowledge.

I would like to express my gratitude to Mr. Raj Nath Singh my faculty guide, for her
kindmentorship and guidance in assisting me withmy final project. His acaademic inputs
provided me with insights that were invaluable for completing this project.

At last but not least gratitude goes to all of my friends who directly or indirectly helped me to
complete this project report.

(Sabir Ali)
 TABLE OF CONTENT

CHAPTER NO CONTENT PAGE

NO.
CHAPTER 1 INTRODUCTION OF THE PROJECT

CHAPTER 2 RESEARCHMETHODOLOGY
 Industry Profile
 Company Profile
 Company overview by
management
 Strength and Weaknesses
 Future prospects of company
 Research Design
 Sample size and Techniques
 Data collection
 Limitations of the study
CHAPTER 3 MICRO ANALYSIS

CHAPTER 4 MACRO ANALYSIS

CHAPTER 5 SUMMARY & RECOMMENDATION

CHAPTER 6 BIBLIOGRAPHY

CHAPTER 7 APPENDICES
 Chapter-1

Introduction of the Project

 INTRODUCTON

Research is a human activity based on intellectual investigation and is aimed at

discovering, interpreting, and revising human knowledge on different aspects of the
world.

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, analyses and
communicates the findings and their implications.

-American Marketing Association

Marketing research is about researching the whole company’s marketing process.

Need of Marketing Research:

The most important task of a marketer is to get the right product at the right place with the right

price to the right person. Besides, it was also necessary to go back and find whether consumer is

getting optimum satisfaction, so that consumer remains loyal. These aspects made it imperative
for the marketers to conduct marketing research.

The following points explain the need of marketing research:

1. Identifying problem and opportunities in the market:

It helps in identifying new market opportunities for existing and new products. It provides

information on market share, nature of competition, customer satisfaction levels, sales

performances and channel of distribution. This helps the firms is solving problems.
2. Formulating market strategies:
Today, markets are no more local. They have become global. Manufactures find it difficult to

contact customers and control distribution channels. Competition is equally severe. The

consumer needs are difficult to predict. Market segmentation is a complicated task in such wide

markets. The marketing intelligence provided through marketing research not only helps in
framing but also in implementing the market strategies.

3. Determining consumer needs and wants:

Marketing has become customer-centric. However, large-scale production needs intermediaries

for mass distribution. Due to prevalence of multi channels of distribution, there is an information

gap. Marketing research helps in collecting information on consumers from structured

distribution research and helps in making marketing customer oriented.

4. For effective communication mix:

In an era of micro- rather than mass-marketing, communication plays a vital role. Marketing

research uses promotional research to study media mix, advertising effectiveness and integrated

communication tools. Research on such aspects will help in promoting effectively a company’s
product in the market.

5. Improving selling activities:

Marketing research is used to analyse and evaluate performances of a company within a market.

It also studies effectiveness of a sales force. It helps in identifying sales territories. Such

information helps the companies in identifying areas of shortcoming in sales. It also examines
alternative methods for distribution of goods.

6. For sales forecasting:

The most challenging task for any production manager is to keep optimum levels of inventory.
However, production is undertaken in anticipation of demand. Therefore, scientific forecast of
sales is required. Marketing research helps in sales forecasting by using market share method,

sales force estimate method and jury method. This can also help in fixing sales quotas and
marketing plans.

7. To revitalize brands:
Marketing research is used to study and find out the existing brand position. It finds out the recall

value of brands. It explores the possibilities of brand extension or prospects of changing existing

brand names. The main purpose of marketing is to create brand loyalty. Marketing research helps
in developing techniques to popularize and retain brand loyalty.

8. To facilitate smooth introduction of new products:

Marketing research helps in testing the new products in one or two markets on a small scale. This

helps in finding out consumer response to new product and develop a suitable marketing mix. It

reveals the problems of the customers regarding new products. Thus, it controls the risk involved
in introducing a new product.

9. Determine export potentials:

The development in transport and communication has helped in globalization and digitalization

of world trade. This has helped in boosting the growth of international markets. Marketing

research helps in conducting market survey for export. It. collects information on marketing

environment prevailing in a country. By collecting data on consumers from different countries, it

indicates export potentials.

10. Managerial decision-making:

Marketing research plays a vital role in the decision-making processes by supplying relevant, up-

to-date and accurate data to the decision-makers. Managers need up-to-date information to

access customer needs and wants, market situation, technological change and extent of
competition.
REVIEW OF EXISTING LITERATURE

The significance of decision making of market strategy and marketing depends on the
conclusions derived from market research. The procedure of market research varies from
company to company but it has a series of steps to be followed. The standard market research
procedure helps in the avoidance of errors, miss understanding and risk of uncertainty.

Marketing Research Procedure can be defined as

“The scientific systematically procedure that includes the steps of problem definition, data
collection, analysis and reporting of data and findings about certain issue if problem face by that
organization” Kotler, et al (2007)

The marketing concept states that the character of the marketing orientated organisation, whether

product or service based, profit or non-profit based, is the identification and true delivery of
consumers’ needs and wants, more effectively and efficiently than the competition.

Hence, in a broad sense, marketing management needs to understand the minds of their target

markets, their attitudes, feelings, beliefs and value systems. They require a formalised,

managerial approach to this most important job. And this entire job is the basic role and purpose

of formal marketing research. Marketing research is the systematic, objective and exhaustive

search for study of the facts relating to any problem in the field of marketing. It is systematic
problem analysis, model building and fact-finding for the purpose of decision-making and
control in the marketing of goods and services.

According to American Marketing Association “marketing research is the systematic gathering,

recording and analysing of data about problems relating to the marketing of goods and services.”

According to Green and Tull, “marketing research is the systematic and objective search for and

analysis of information relevant to the identification and solution of any problem in the field of

marketing”. Professor Philip Kotler defines marketing research as “Systematic problem analysis,
model-building and fact-finding for the purpose of improved decision making and control in the
marketing of goods and services.”

The features of marketing research are:

1. Search for data:

It is a search for data which are relevant to marketing problems – problems in different

functional areas of marketing consumer behaviour, product, sales, distribution channel, pricing,
ad and physical distribution.

2. It is systematic:
It has to be carried out in a systematic manner rather than haphazard way. The whole process
should be planned with a clear objective.

3. It should be objective:
Objectivity is more important in any result. It means that the research is neither carried on to
establish an opinion nor is intentionally slanted towards pre-determined results.

4. It is a process:
It involves various steps for gathering, recording and analysing of data.

Objectives of Marketing Research:

Marketing research may be conducted for different purposes. The main objectives or purposes of
marketing research are:

i) To estimate the potential market for a new product to be introduced in the market.

ii) To know the reactions of the consumers to a product already existing in the market.

iii) To find out the general market conditions and tendencies.

iv)To know the reasons for failure of a product already in the market.

v) To find out the better methods of distributing the products to consumers.

vi)To know the types of consumers buying a product and their buying motives to know their
opinions about the product and to get their suggestion improvement of a product.

vii) To assess the strength and weakness of the competitors.

viii) To know the dimensions of the marketing problems.

ix) To ascertain the distribution methods suited to the product and the

x) To estimate the market share of a firm.

xi) To assess the probable sales volume of a firm.

xii) To assess the reaction of the consumers to the packaging of the firm and to make packaging
as attractive as possible.

Advantages of Marketing Research:

i. Marketing research helps the management of a firm in planning by providing accurate and up-
to-date information about the demands, their changing tastes, attitudes, preferences, buying

ii. It helps the manufacturer to adjust his production according to the conditions of demand.

iii. It helps to establish correlative relationship between the product brand and consumers’ needs
and preferences.

iv. It helps the manufacturer to secure economies in the distribution о his products.

v. It makes the marketing of goods efficient and economical by eliminating all type of wastage.
vi. It helps the manufacturer and dealers to find out the best way of approaching the potential

vii. It helps the manufacturer to find out the defects in the existing product and take the required
corrective steps to improve the product.

viii. It helps the manufacturer in finding out the effectiveness of the existing channels of
distribution and in finding out the best way of distributing the goods to the ultimate consumers.

ix. It guides the manufacturer in planning his advertising and sales promotion efforts.

x. It is helpful in assessing the effectiveness of advertising programmes.

xi. It is helpful in evaluating the relative efficiency of the different advertising media.

xii. It is helpful in evaluating selling methods.

xiii. It reveals the causes of consumer resistance.

xiv. It minimises the risks of uncertainties and helps in taking sound decisions.

xv. It reveals the nature of demand for the firm’s product. That is, it indicates whether the
demand for the product is constant or seasonal.

xvi. It is helpful in ascertaining the reputation of the firm and its products.

xvii. It helps the firm in determining the range within which its products are to be offered to the

consumers. That is, it is helpful in determining the sizes, colours, designs, prices, etc., of the
products of the firm.

xviii. It would help the management to know how patents, licensing agreements and other legal
restrictions affect the manufacture and sale of the firm’s products.
xix. It is helpful to the management in determining the actual prices and the price ranges.

xx. It is helpful to the management in determining the discount rates.

xxi. It is helpful to the management in ascertaining the price elasticity for its products.

xxii. It helps the firm in knowing the marketing and pricing strategy of competitors.

DISADVANTAGES OF MARKETING RESEARCH:

 Cost
Conducting a market research for a new product can be costly. For instance, you may have to
hire a research company to conduct the research for you. According to market research firm B2B
International, research costs about $20,000 for a small target market, as of 2013. For a small
business, this can be a high cost to incur.

 Inaccurate Information
A biased population or a poorly formulated research can result in false or inaccurate feedback.
Plus, market research on new products developments may only reveal customer attitudes about
your new product such as the intentions to buy it. However, these intentions may not translate to
actual sales in future. Market research also affords you a small focus group, which may give you
inconclusive data about your new product.

 Time Constraint
Market research involves a detailed process of collecting and analysing data, which is time-
consuming. Also, for you to have a relevant market survey, you have to collect and analyse the
data within a given time frame; otherwise it might easily become outdated. You also need to
make quick decisions regarding the product to gain a competitive edge over others before you
lose the available market opportunity. Allocating all the market research processes in your
constrained timetable can be difficult.

 Constantly Changing Markets

The period over which a market research data is relevant may be limited because market
parameters keep changing. Data collected for the purpose of launching a new product may be
outdated by the time the product is ready for a market launch. To ensure that your research stays
relevant, you need to constantly monitor changing market conditions and update your data
accordingly. If you fail to update your data, the survey might not give a true reflection of the
reality on the ground

OBJECTIVES OF THE STUDY

 The main objective of the project is to analyse and study in efficient way the current
position of Coca- Cola Company.

 To perform PESTLE and SWOT analysis of Coca-Cola globally as well as locally. This
would help us identify areas of potential growth.

 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.

 To understand the reasons behind the purchase of Coca-Cola products.

 Chapter-2
Research Methodology
 INDUSTRY PROFILE:-

BRINDAVAN AGRO INDUSTRY LTD.

Brindavan Agro Industries Pvt. Ltd is a renowned group and is the First Bottler for Coca-
Cola India since 24th Oct 1993 and with its continuous efforts in 1994, it has been
awarded as Best Bottler o3121f Company for two successive years.

Transforming challenges into opportunities has been the hallmark of the Brindavanagro
industries pvt.Ltd. Ever since its inception two decades ago. Starting the journey with
coca cola bottling 1993, BAIL under its umbrella brand, it has redefined the status of
Agra from just a tourist city to an industrial city.

Acknowledging the scope of prosperity, BAIL has decided to emerge as the potent group
across the country and blissfully across globe too. The flagship company, it has actually
grasped the prospective sources in all proximities and even has started moving out of
peripheries to seize more talent growth.

THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCGs) are goods that are consumed in a short span of
time and are most often consumed daily. FMCGs are one of the most important sectors of
an economy and are often referred to as defensives as they comprise the basic day to day
needs of the citizens.

The Fast Moving Consumer Goods (FMCG) Industry in India include segments like
cosmetics, toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food
products, white goods, house care products, plastic goods, consumer non- durables, etc.
The FMCG market is highly concentrated in the urban areas as the rise in the income of
the middle-income group is one of the major factors for the growth of the Indian FMCG
market.

The penetration in the rural areas in India is not high as yet and the opportunity of growth
in these areas is huge by means of enhanced penetration in to the rural market and
 conducting awareness programs in these areas. The scopes for the growth of the F2MCG
industry are high as the per capita consumption of the FMCG products in India is low in
comparison to the other developed countries. The manufacturing of the FMCG goods is
concentrated in the western and southern belt of the country. .

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, theFMCG 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.

MAJOR PLAYERS OF FMCG IN INDIA

i. BritanniaIndia ltd.
ii. Dabur India ltd.
iii. Coca cola
iv. Nestle
v. Pepsi.co
vi. Samsung
vii. LG
viii. Whirlpool
ix. Haier
x. Videocon
A BRIEF INSIGHT – BEVERAGE INDUSTRY IN INDIA

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

COLA NON-COLA NON-COLA

 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.

THE COCA COLA COMPANY PROFILE

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.

THE COCA - COLA SYMBOL:

Coca cola sometimes known as Coke, is the most popular carbonated soft drink in the
world, owned and manufactured by The Coca-Cola Company. Coca cola was introduced
as a patent medicine when it was formulated by John Pemberton in the late 19th century,
the beverage was purchased by business magnate As a Griggs Candler in 1887. It was
Candler who made Coke one of the most famous beverages on the planet.

The red and white color scheme in the Coca-Cola logo is adequately simple, playful and
distinctive to attract young audience. While the red color symbolizes passion,
determination, youthfulness and vitality, the white color represents the charm and
elegance of the Coca-Cola brand.
 MISSION:

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
 People: Be a great place to work where people are inspired to be the best they can
be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
  Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization

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.

ACT LIKE OWNERS:

 Be accountable for our actions and inactions.
 Steward system assets and focus on building value.
 Reward our people for taking risks and finding better ways to solve problems.
 Learn from our outcomes -- what worked and what didn’t.

BE THE BRAND:

 Inspire,
 creativity,
 passion,
  optimism and fun

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 wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of
Vin Mariana, a European coca wine.

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. 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. As a 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. Murphy, C.O. Mullah and E.H. Blood worth. Meanwhile,
Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.

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.
 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 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.

GLOBAL MARKET SHARE OF COCA-COLA

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 aluminum 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 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 glace au 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 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.

TRENDS AND FORCES

 The Global Economic Recession Threatens Overall Demand:

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 organically and
through acquisitions, such as that of Chinese juice maker Hu Yuan for $2.4 billion. However the
company was unsuccessful with its purchase of Hu Yuan 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.

 Aversion toSoda Threatens Main Business:

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.

 Integrated Bottler Strategy Increases Flexibility:

After CEO Neville Is dell was brought out of retirement in 2004 to revive the then flagging
beverage maker, one of the first areas that he targeted for improvement was KO's frayed relations
with its extensive network of bottlers. Since consolidating all company-owned bottlers into the
Bottling Investments division, Is dell has continued to increase KO's interest in its bottlers
through stake purchases or outright buyouts. This strategy represents a weakening of the division
between KO's production and distribution operations. Is dell 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, is dell 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 Ferocity, Voltage& Sons, and an
American iced-tea company. Is dell sees these agreements as another way of taking advantage of
the rapidly growing non-CSD market.
  Bottled Water Falling Out of Favour:

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 hasled many customers to cut
back on bottled water in favor of tap water and reusable containers.

 Dollar Affects International Performance:

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.

 Commodity Cost FluctuationsAffect Margins:

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.

Such 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.

 Rivalry among all the Firms:

The greatest competition that Coca-Cola faces is from the rival sellers within the industry. Coca-
Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in this industry, and
they are all globally established which creates a great amount of competition. Aside from these
major players, smaller companies such as Cot Corporation and National Beverage Company
make up the remaining market share. All five of these companies make a portion of their profits
outside of the United States.

Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and
Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca-Cola has
higher sales in the global market than PepsiCo, PepsiCo is the main competitor for Coca-Cola
and these two brands have been in a power struggle for years (Murray, 2006c). Coke has been
more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of
21%.

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market
share has increased to 30.8%, while the Coca-Cola Company's has decreased to 42.7% due to
Pepsi marketing schemes still the higher large gap between the market share can be attributed to
the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its
bottler's and distribution network especially in developed markets.

"The Coca-Cola Company" is the largest soft drink company in the world. Every year
800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling plants
with some exceptions are locally owned and operated by independent business people who are
native to the nations in which they are located. Coca-Cola manufactures, distributes and markets
non-alcoholic beverage concentrates and syrups, including fountain syrups.

It supplies concentrates and beverage bases used to make the products and provides management
assistance to help it's bottler's ensure the profitable growth of their business. This has put Pepsi at
a significant disadvantage compared to US market. Overall, Coca-Cola continues to outsell Pepsi
in almost all areas of the world. However, exceptions include India, Saudi Arabia and Pakistan.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a
new government ordered, The Coca-Cola Company to turn over its secret formula for Coke and
dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA).

In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-
owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. PepsiCo
bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company
returned in pursuance of India's Liberalization policy. In 2005, The Coca-Cola Company and
PepsiCo together held 95% market share of soft-drink sales in India. Coca-Cola India's market
share was 52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold
War ended. In 1972, Pepsi Co Company struck a barter agreement with the government of the
Soviet Union, in which Pepsi Co was granted exportation and Western marketing rights to
Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola.

This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the
U.S.S.R. Pepsi, as one of the first American products in the Soviet Union, became a symbol of
that relationship and the Soviet policy.

Pepsi is however trying to counter this by competing more aggressively in the emerging
economies where the dominance of Coke is not as pronounced, with the growth in emerging
markets significantly expected to exceed the developed markets, rivalry in international marketis
going to be more pronounced.

Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting
Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began showing
people doing blind taste tests called Pepsi Challenge in which they preferred one product
over the other. Pepsi started hiring more popular spokespersons to promote their
products.

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi
Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of
packages and cups. They could redeem the points for free Pepsi lifestyle merchandise. After
researching and testing the program for over two years to ensure that it resonated with
consumers, Pepsi launched Pepsi Stuff, which was an instant success.

Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005 &
Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi Stuff
ending its services and Coke Rewards still offering prizes on their website. Both were loyalty
programs that give away prizes and product to consumers after collecting bottle caps and 12 or
24 pack box tops, then submitting codes online for a certain number of points. However, Pepsi's
online partnership with Amazon allowed consumers to buy various products with their "Pepsi
Points", such as mp3 downloads. Both Coca-Cola and coke previously had a partnership with the
iTunes Store.

 POTENTIAL ENTRANTS:

New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and
Pepsi Co dominate the industry with their strong brand name and great distribution channels. In
addition, the soft-drink industry is fully saturated and growth is small. This makes it very
difficult for new, unknown entrants to start competing against the existing firms.
 Another barrier to entry is the high fixed costs for warehouses, trucks, and labor, and
economies of scale. New entrants cannot compete in price without economies of scale.
These high capital requirements and market saturation make it extremely difficult for
companies to enter the soft drink industry therefore new entrants are not a strong
competitive force.
Capital requirements for producing, promoting, and establishing a new soft drink
traditionally have been viewed as extremely high. According to industry experts, this
makes the likelihood of potential entry by new players quite low, except perhaps in much
localized situations that matter little to Coke or Pepsi. Yet, while this view may reflect
conventional wisdom, some industry observers question whether a new time is coming,
with 'new age' beverages selling to well-informed and health-informed and health-
conscious consumers. This issue was beginning to grab the attention of both Coke and
Pepsi in the summer of 1992, when they both were not able to explain a drop in their
June 1992 sales.

 SUBSTITUTES:

Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit juices
are the more popular substitutes. Availability of shelf space in retail stores as well as advertising
and promotion traditionally has had a significant effect on beverage purchasing behaviour.
Overall total liquid consumption in the United States in 1991 included Coca-Cola's 10% share of
all liquid consumption.

“For years the story in the non-alcoholic sector centered on the power struggle between Coke
and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new
product flavors and looking to noncarbonated beverages for growth.”

Substitute products are those competitors that are not in the soft drink industry. Such
substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea,
juices etc.
 Bottled water and sports drinks are increasingly popular with the trend to be a more
health conscious consumer. There are progressively more varieties in the water and
sports drinks that appeal to different consumer's tastes, but also appear healthier than
soft drinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine.
The consumers who purchase a lot of soft drinks may substitute coffee if they want to
keep the caffeine and lose the sugar and carbonation.

The growth rate has been recently criticized due to the market saturation of soft drinks.
Data monitor (2005) stated, “Looking ahead, despite solid growth in consumption, the
global soft drinks market is expected to slightly decelerate, reflecting stagnation of
market prices.” The change attributed to the other growing sectors of the non-alcoholic
industry including tea & coffee is 11.8% and bottled water is 9.3%. Sports drinks and
energy drinks are also expected to increase in growth as competitors start adopting new
product lines.

Profitability in the soft drink industry will remain rather solid, but market saturation has
caused analysts to suspect a slight deceleration of growth in the industry (2005). Because
of this, soft drink leaders are establishing themselves in alternative markets such as the
snack, confections, bottled water, and sports drinks industries.

In order for soft drink companies to continue to grow and increase profits they will need
to diversify their product offerings. So in order to compete with the substitutes industry,
Coca-Cola has diversified from just carbonated drink industry to other substitute and so
have other brands like Pepsi, Dr pepper/Snapple.

 BARGANING POWER OF BUYERS:

Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's
real 'buyers' have been local bottlers who are franchised -or are owned, especially in the
 case of Coke- to bottle the companies' products and to whom each company sells its
patented syrups or concentrates. While Coke and Pepsi issue their franchise, these
bottlers are in effect the 'conduit' through which these international cola brands get to
local consumers.
Through the early 1980's, Coke's domestic bottlers were typically independent family
businesses deriving from franchises issued early in the century. Pepsi had a collection of
similar franchises, plus a few large franchisees that owned many locations. Until 1980,
Coke and Pepsi were somewhat restricted in owning bottling facilities, which was viewed
as a restraint of free trade. Jimmy Carter, a Coke fan, changed that by signing legislation
to allow soft-drink companies to own bottling companies or territories, plus upholding the
territorial integrity of soft-drink franchises, shortly before he left office.
Also, the three most important channels for soft drinks are supermarkets, fountain sales,
and vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink
industry sales, fountain sales represented about 25%, and vending accounted for
approximately 13%. Other retailers represent the remaining percentage.
While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of
bottling companies, Coca-Cola uses its own network of wholesalers for their fountain
syrup distribution, and Pepsi distributes its fountain syrup through its bottlers.

PESTEL ANALYSIS OF COCA- COLA

PESTLE stands for Political, Economic, Social, Technological, Legal and
Environmental. It is a tool that helps the organisations for making strategies and to know
the EXTERNAL environment in which the organisation is working and is going to work
in the future.
Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic
drinks also need to undergo this PESTLE analysis to know about the external
environment (especially their competitors and the opportunities available) in order to
keep pace with the fast growing economy.

Political Analysis:
Political factors are how far a government intervenes in the operations of the company. The
political factors may include tax policy, trade restrictions, environmental policy, laws imposed
on the recruiting labors, amount of permitted goods by the government and the service provided
by the government.
Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and
Drug Administration) , it is an agency in the United States Department of Health and Human
Services. Its headquarters is in USA and it has started opening offices in foreign countries as
well. The job of the FDA is to check and certify whether the ingredients used in the
manufacturing of Coca-Cola products in the particular country is meeting to the standards or not.
In Coca-Cola the company takes all the necessary steps to analyze thoroughly before introducing
any ingredients in its products and get prior approval from the FDA. The company also has to
take into consideration of the regulation imposed by FDA on plastic bottled products.
The company also is subjected to income tax policies according to the jurisdiction of various
countries. In addition to this, the company is also subjected to import and excise duties for
distribution of the products in the countries where it does not have the outsourcing units.
Moreover, if there is any unrest or changes in the government and any kind of protest by the
political activists may decline the demand for the products. Also the situations like the unsure
conditions prevailing in Iraq and escalation of the terrorist activities in these areas could affect
the international market of our product. It creates an inability for the to penetrate in the markets
of such countries.

Economic Factors:
The economic factors analyse the potential areas where the firm can grow and expand. It
includes the economic growth of the country, interest rates, exchange rates, inflation rates, wage
rates and unemployment in the country.
The company first analyses the economic condition of the country before venturing into that
country. When there is an economic growth in the country, the purchasing power among people
increases. It gives the company or the marketer a good chance to market the product. Coca-Cola,
in the past identified this correctly and rightly started its distribution across various countries.
The net operating profits for the company outside US stands at around 72%. Along with this the
company uses 63 various types of currencies other than US Dollar. Hence there is a definite
impact in the revenues due to the fluctuating foreign currency exchange rates. A strong and weak
currency tends to affect the exporting of the products globally.

Social Factors:
Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the
social factors but the company has to adjust itself to the changing society. The company adapts
various management strategies to adapt to these social trends.
Coca-Cola which is a B2C company, is directly related to the customer, so social changes are the
most important factors to consider. Each and every country has a unique culture and attitude
among the people. It is very important to know about the culture before marketing in a particular
country. Coca-Cola has about 3300+ products in their stable, when entering into a country it does
not introduce all the products. It introduces minimum number of products according to the
culture of the country and the attitude of the people.
Consumers and government are becoming increasingly aware of the public health consequences,
mainly obesity which is the second social factor in the soft drinks industry. It inspired the
company to venture into the areas of Diet coke and zero calorie soft drinks. The problem of
obesity is taken seriously among the youngsters who like to maintain a good physique. Hence
coke introduced dietary products for those youngsters who can enjoy coke with zero calories. In
one of the study it is said that “Consumer from the age groups 37 to 55 are also increasingly
concerned with nutrition”. Since many are aware, they are concerned with the longevity of their
lives. This will affect the demand of the company in the existing product and also is an
opportunity to venture into new health and energy drinks industry.

Technological Factors:
Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of
the products is relatively a Low-Tech business, although the creation of a new product with the
perfect blend and taste is a science (an art in itself).
Technological contributions are most important in packaging. The company’s rely on their
bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit
case volume is manufactured and distributed by their bottling partners in whom the company
does not have controlling power. Hence it is necessary for the company to maintain a cordial
relation with their bottling partners. If the company do not give ample support in pricing,
marketing and advertising then the bottling industry while increase their short term profits, may
become detrimental to the company.

Legal Factors
The legal factors include discrimination law, customer law, antitrust law, employment law and
health and safety law. In Coca-Cola the business is subjected to various laws and regulation in
the numerous countries in which they do the business, the laws include competition, product
safety, advertising and labelling, container deposits, environment protection, labour practices.
In the US the products of the company is subjected to various acts like Federal Food, Drug and
Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various
environment related acts and regulations, the production, distribution, sale and advertising of all
the products are subjected to various laws and regulations. Changes in these laws could result in
increased costs and capital expenditures, which affects the company profitability and also the
production and distribution of the products.

SWOT ANALYSIS OF COCA-COLA

 STRENGTHES WEAKNESS
Negative Publicity.
World's leading brand.
Decline in cash from
Large scale of operations.
Operating Activities.
Robust revenue growth in 3
Sluggish Performance in
segments.
North America.
SWOT
ANALYSIS THREATS
OPPORTUNITIES
Acquisitions. Intense Competition.
Growing bottled water Dependence on bottling
market. Patners.
Growing Hispanic Population Sluggish growth of
in U.S. Carbonated beverages.

STRENGTHES:

 WORLD’S LEADING BRAND

Coca-Cola has strong brand recognition across the globe. The company has a leading brand
value and a strong brand portfolio. Business-Week and Inter-brand, a branding consultancy,
recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in
2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. Coca-
Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand
value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product brands.
The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke,
Sprite and Fanta.

 LARGE SCALE OF OPERATIONS

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola
is the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates
and syrups in the world. Coco-Cola is selling trademarked beverage products since the year
1886 in the US. The company currently sells its products in more than 200 countries. Of the
approximately 52 billion beverage servings of all types consumed worldwide every day,
beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4
billion.

The company’s operations are supported by a strong infrastructure across the world. Coca-
Cola owns and operates 32 principal beverage concentrates and/or syrup manufacturing
plants located throughout the world.

WEAKNESS:

 NEGATIVE PUBLICITY
The Coca-Cola Company has been involved in a number of controversies and lawsuits
related to its relationship with rights violations and other perceived unethical practices. There
have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle
East and U.S. foreign policy. The company received negative publicity in India during
September 2006.The Company was accused by the Centre for Science and Environment
(CSE) of selling products containing pesticide residues. Coca-Cola products sold in and
around the Indian national capital region contained a hazardous pesticide residue.

On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr. Mother
Kent, President and Chief Executive Officer, to warn him that the FDA had concluded that
Coca-Cola's product Diet Coke plus 20 FL OZ was is in violation of the Federal Food, Drug,
and Cosmetic Act.

In January 2009, the US consumer group the Centre for Science in the Public Interest filed a
class-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along
with the company's flavours, of Vitamin Water. Claims say that the 33 grams of sugar are
more harmful than the vitamins and other additives are helpful.

 SLUGGISH PERFORMANCE IN NORTH AMERICA

Coca-Cola’s performance in North America was far from robust. North America is Coca-Cola’s
core market generating about 30% of total revenues during fiscal 2006. Therefore, a strong
performance in North America is important for the company.

In North America the sale of unit cases did not record any growth. Unit case retail volume in
North America decreased 1% primarily due to weak sparkling beverage trends in the second half
of 2006 and decline in the warehouse-delivered water and juice businesses. Moreover, the
company also expects performance in North America to be weak during 2007. Sluggish
performance in North America could impact the company’s future growth prospects and prevent
Coca-Cola from recording a more robust top-line growth.

 DECLINE IN CASH FROM OPERATING ACTIVITIES

The company’s cash flow from operating activities declined during fiscal 2006. Cash flows from
operating activities decreased 7% in 2006 compared to 2005. Net cash provided by operating
activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-Cola’s cash flows
from operating activities in 2006 also decreased compared with 2005 as a result of a contribution
of approximately $216 million to a tax-qualified trust to fund retiree medical benefits.

OPPORTUNITIES:

 ACQUISITIONS

During 2006, its acquisitions included Kerry Beverages, (KBL), which was
subsequently, reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a
controlling shareholding in KBL, its bottling joint venture with the Kerry Group, in
Hong Kong.
The acquisition extended Coca-Cola’s control over manufacturing and distribution joint
ventures in nine Chinese provinces.

In Germany the company acquired Apollinarism which sells sparkling and still mineral
water. Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company
in South
 Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006.
These acquisitions strengthened Coca-Cola’s international operations.

 GROWING BOTTLED WATER MARKET

Bottled water is one of the fastest-growing segments in the world’s food and beverage market
owing to increasing health concerns. The market for bottled water in the US generated revenues
of about $15.6 billion in 2006.

Market consumption volumes were estimated to be 30 billion liters in 2006. The market's
consumption volume is expected to rise to 38.6 billion units by the end of 2010. This represents a
CAGR of 6.9% during 2005-2010.

In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of 2010.
In the bottled water market, the revenue of flavored water (water-based, slightly sweetened
refreshment drink) segment is growing by about $10 billion annually. The company’s Dasani
brand water is the third best-selling bottled water in the US. Coca-Cola could leverage its strong
position in the bottled water segment to take advantage of growing demand for flavored water.

 GROWING HISPANIC POPULATION IN U.S

Hispanics are growing rapidly both in number and economic power. As a result, they
have become more important to marketers than ever before. In 2006, about 11.6 million
US households were estimated to be Hispanic. This translates into a Hispanic population
of about 42 million.

The US Census estimates that by 2020, the Hispanic population will reach 60 million or
almost 18% of the total US population. The economic influence of Hispanics is growing
even faster than their population. Nielsen Media Research estimates that the buying
power of Hispanics will exceed $1 trillion by 2008- a 55% increase over 2003 levels.

Coca-Cola has extensive operations and an extensive product portfolio in the US. The
company can benefit from an expanding Hispanic population in the US, which would
 translate into higher consumption of Coca-Cola products and higher revenues for the
company.

THREATS:

 INTENSE COMPETITION

Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages

industry. The company faces intense competition in various markets from regional as well as
global players. Also, the company faces competition from various non-alcoholic sparkling
beverages including juices and nectars and fruit drinks. In many of the countries in which Coca-
Cola operates, including the US, PepsiCo is one of the company’s primary competitors. Other
significant competitors include Nestle, Cadbury Schweppes, Grouped DANONE and Kraft
Foods.

Competitive factors impacting the company’s business include pricing, advertising, sales
promotion programs, product innovation, and brand and trademark development and protection.

 DEPENDENCE ON BOTTLING PARTNERS

Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom
it doesn’t have any ownership interest or in which it has no controlling ownership interest. In
2006, approximately 83% of its worldwide unit case volumes were produced and distributed by
bottling partners in which the company did not have any controlling interests. As independent
companies, its bottling partners, some of whom are publicly traded companies, make their own
business decisions that may not always be in line with the company’s interests. In addition, many
of its bottling partners have the right to manufacture or distribute their own products or certain
products of other beverage companies.
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 flavored drink, LIMCA, and mango flavored, MAAZA. In
1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main competitor
(Pepsi). They presumed that with the tried and tested products of Parle they will be able to regain
their throne in the Indian soft drink market. Pepsi having a 6 year head start helped revive the
demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India.
Pepsi put more focus on the youth of the country in their advertisements but coca cola tried
influencing Indians with the ‘American’ way of life, which turned out to be a mistake.

Coca-Cola invested heavily in India for the first five years, which got them credit of being one of
the biggest investor in the country; however, their sales figures were not so impressive. Hence,
they had to re-think their market strategies.

Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products. In
various regions they tried portraying coca cola products with different regional food products.
One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they featured
the same quote with different regional entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water
Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a
competitive pricing policy, they have regained their throne.With virtually all the goods and
services required to produce and market Coca-Cola being made in India, the business system of
the Company directly employs approximately 6,000 people, and indirectly creates employment
for more than 125,000 people in related industries through its vast procurement, supply, and
distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers
manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow
alleyways of Indian cities – constantly keep our brands available in every nook and corner of the
Country’s remotest areas.

PRODUCTS OF COCA-COLA INDIA

COCA-COLA:-
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments to
ensure that the beverage is available to more and more people, even in remote and inaccessible
parts of the nation.

Over the past fourteen years has enthralled consumers in India by connecting with passions of
India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho
Jaye”&“Life Ho Toh Aise” were very popular & had entered youths vocabulary. In 2002.Coca-
Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand
to make it India’s favorite soft drink brand.

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml,
100ml
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 lemony bite
combined with the single minded proposition of the brand as the provider of “Freshness”.

Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise”
hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original thirst
choice of millions of customers for over 3 decades.

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml, 100ml

THUMBS UP:-

Thumbs up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thumbs up was acquires by The Coca-Cola Company in 1993. Thumbs 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.

GLASS PET CAN FOUNTAIN

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.

RGB PET CAN FOUNTAIN

200ml, 500ml, 600ml, 330 ml VARIOUS SIZES

300ml 1250ml, 1500ml,
2000ml, 2250ml

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 color, 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.

GLASS PET CAN FOUNTAIN

200ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

300ml 2.25L, 500ml, 100ml

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.

The launch of Minute Maid in India (started with the south of the country) is aimed to
further extend the leadership of Coca-Cola in India in the juice drink category.

Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

MAAZA:-

Maaza was introduced in late 1970’s. Maaza has today come to symbolize the very spirit
of mangoes. Universally loved for its taste, color, 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. Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE:-

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, and Cinemas and in Corporates across all major
metros in India.

HOT Espresso, Americano, Cappuccino, Café Latte, Mochaccino,

BEVERAGES Hot Chocolate, Cardamom Tea.
COLD Ice Teas, Cold Coffee.
BEVERAGES
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.
There are three types of objectives in a marketing research project:-
 Exploratory Research.
 Descriptive Research.
 Casual Research.

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.

SOURCES OF DATA

The data has been collected from both primary as well as secondary sources.

PRIMARY DATA:
The first-hand information by the investigator by means of observation face to face questioning,
telephone interview and mailing questionnaire is called Primary data.
Primary data consist of original information gathered for a specific purpose.
Sources of Primary Data-For the purpose of present study the primary data was collected from
the respondents by contacting them personally.
 SECONDARY DATA:-

It is defined as the data collected earlier for a purpose other than one currently being
pursued.As a researcher 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.

LIMITATIONS OF THE STUDY:-

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).

 The project duration is limited to 4 weeks so it limits the area of study.

 The study was confined to New Delhi, Noida and Greater Noida due to which the result
cannot be applied universally.
 Chapter-3
Micro Analysis
Micro Analysis
The data after collection has proposed and analyzed in accordance with the outline laid down for
the purpose at the time of developing the research plan. The data collected in the stated manner
tabulated according to the corresponding variables. The table thus prepared were analyzed.

Q1. Which soda do customers drink more?

S.NO BRAND NAME PERCENTAGE

1 Coca cola 50%

2 Pepsi 45%

3 Neither 5%

Chart Title

5%

50%
45%

Regular coca cola regular pepsi neither

Q2.Which one do customers prefer the taste of?
S.NO PERCEPTION PERCENTAGE

1 Regular coca cola 30%

2 Regular pepsi 22%

3 Like them equally 28%

4 Neither 8%

5 Don’t know 12%

Preferance

12%
8% 30%

28%
22%

regular coca cola regular pepsi like them equally neither don't know
 Q3.Which one do customers consider to be most popular?

S.NO FACTORS PERCENTAGE

1 Regular coca cola 50%
2 Regular Pepsi 40%
3 Don’t know 10%

popularity

10%

50%
40%

regular pepsi regular coca cola don't know

Q4.WHAT ARE THE VARIOUS PERCEPTION TOWARDS PRODUCTS OF COKE?

S.NO PERCEPTION PERCENTAGE

1 Better quality 24%

2 High cost 3%
3 Packaging and Labelling 23%

4 Taste 27%
5 More Variants 23%

23% 24%
Better quality
High cost
3% Packaging and Labelling
Taste
More Variants
27% 23%
Q5. Which of the sodas does your local shop offer?
1 Coca cola 40%
2 Pepsi 25%
3 Like both 20%

4 Don’t know 10%

5 neither 5%

offered sodas

5%
10%

40%
20%

25%

coca cola pepsi like both don't know neither

Q6. Which of the marketing campaign do you prefer?

1 Always Coca cola 45%

2 Pepsi celebrity campaign 35%
3 Don’t know 20%

Marketing campaign

20%

45%

35%

always coca cola pespi celebrity campaign don't know

Q7. What influences customerschoice of soda? (Regular Coca Cola or regular
Pepsi)
1 Taste 20%
2 Availability 15%
3 Customer loyalty 5%

4 Brand image 30%

5 Price 10%

6 Advertisement 15%

7 Don’t drink these two soda 5%

Choice

taste availability
customer loyalty brand image
price advertisement
don't drink these two soda
Q8. In which media channels do you usually recognize Coca Cola's
advertisements?
1 t.v 45%
2 Radio 15%
3 Internet 5%

4 Magazines 10%
5 Poster 20%

6 neither 5%

Sales

5%

20%
45%

10%

5%
15%

t.v radio internet magazines poster neither

.
Q9. What's customer’s general impression of Coca Cola's advertisements?
1 Traditional 15%
2 Trendy 20%
3 controversial 15%

4 Commercial 22%
5 enjoyable 25%

6 provocative 3%

Advertisement
3%

15%

25%

20%

22%
15%

Traditional trendy controversial commercial enjoyable provocative

 Q10. How often do customersdrink the soda you usually drink?
(Regular Coca Cola or Regular Pepsi)
1 Everyday 35%

2 2-6 times a week 25%

3 Every other week 15%

4 Once a month 10%

5 Only for certain occasion 10%

6 never 5%

5%

15%
35%

20%

15% 25%

everyday 2-6 times a week everyother week once a month only for certain occasion never
 Chapter-4
Macro Analysis
Macro Analysis
1)
Interpretation: - Here it is shown that most of the customers drink coca cola which is by 50%
market share and 45% customers prefer Pepsi and only 5% of customers don't prefer any of the
above mentioned drinks.
Inferences: Above analysis resulted that that most of the customers drink coca cola which is by
50% market share and 45% customers prefer Pepsi and only 5% of customers don't prefer any of
the above mentioned drinks.

2)
Interpretaion: - From the above figure we can see that consumer prefer more of the coca cola
rather than Pepsi and other drinks. The customer who prefer coca cola are 30%, Pepsi 22%,
customers who like them equally are 28% and least 8% prefer neither of both drinks.
Inferences: Above analysis resulted that consumer prefer more of the coca cola rather than Pepsi
and other drinks. The customer who prefer coca cola are 30%, Pepsi 22%, customers who like
them equally are 28% and least 8% prefer neither of both drinks.

3)
Interpretation: From the above figure we can see that coca cola is the one of the most popular
drink with 50% of share in market, Pepsi with 40% and some don’t know about these drinks i.e.
10% only.
Inferences: Above analysis resulted that that coca cola is the one of the most popular drink with
50% of share in market, Pepsi with 40% and some don’t know about these drinks i.e. 10% only.

4)
Interpretation: - Here it is shown perception towards coca cola for taste for 27%, better quality
24%, packaging and labelling and more variants for 23% and high cost 3%.
Inferences: Above analysis resulted that coca cola for taste for 27%, better quality 24%,
packaging and labelling and more variants for 23% and high cost 3%.
 5)
Interpretation: Through the above figure we can see that most of the shop often offers coca cola
i .e.40% rather than Pepsi25% and other sodas. But there are some customers who like both 20%
and some customers don’t know any of above mentioned drinks.
Inferences: Above analysis resulted that that most of the shop often offers coca cola i .e.40%
rather than Pepsi25% and other sodas. But there are some customers who like both 20% and
some customers don’t know any of above mentioned drinks.

6)
Interpretation: from the above figure we can see that the most of the consumer prefer coca cola
marketing campaign which is 45%, Pepsi Celebrity campaign 35% and don’t know is 20%.
Inferences: Above analysis resulted that the most of the consumer prefer coca cola marketing
campaign which is 45%, Pepsi Celebrity campaign 35% and don’t know is 20%.

7)
Interpretation: from the above figure we can see that the thing that influence the consumer’s
choice of soda by its brand image 30%,taste 20%, advertisement and availability is 15%, and
least is the criteria in which customers don’t drink any of these sodas i.e. 5%
Inferences: Aboves analysis resulted that the thing that influence the consumer’s choice of soda
by its brand image 30%,taste 20%, advertisement and availability is 15%, and least is the criteria
in which customers don’t drink any of these sodas i.e. 5%

8)
Interpretation: Here it is shown that through television Coca Cola is mostly promoted i.e. 45%
and posters (20%),radio (15%), then magazines and internet which is 10% and 5% respectively .
Infrences: Above analysis resulted that Coca Cola is mostly promoted i.e. 45% and posters
(20%),radio (15%), then magazines and internet which is 10% and 5% respectively.
 9)
Interpretation: - From the above figure we can see that the general impression of the coca cola
is enjoyablewhich is of 25%,commercial (22%),trendy (20%), traditional and controversial both
are of (15%) and least is provocative (3%).
Infrences: Above analysis resulted that the general impression of the coca cola is
enjoyablewhich is of 25%,commercial (22%),trendy (20%), traditional and controversial both are
of (15%) and least is provocative (3%).

10)
Interpretation: In the above figure it is shown that most of the customers prefer Coca Cola as
everyday drink (35%),2-6 times a week (25%),every other week (15%) and at certain occasions
and once in a month (10%).
Inferences: Above analysis resulted that most of the customers prefer Coca Cola as everyday
drink (35%),2-6 times a week (25%),every other week (15%) and at certain occasions and once
in a month (10%).
 Chapter-5
Summary of major
observations
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 flavours like health drinks and other
low-calorie offering .Coca-Cola India can also introduce some fruit based drinks, as
it has already entered the energy drink arena with “Burn”.

 Coca-Cola’s distribution channel is mostly through retail. Whereas the competitors

also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola should
try to increase their distribution in these areas.

 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.
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 more loyal in today’s scenario, so you need to be always on your toes.
Bibliograpghy
Bibliography

 Philip kotler- Marketing Management-12th edition 2007, PHI, New Delhi.

 Rajan Saxena-Marketing Managemnet-4th edition 2004, TMH- New Delhi.
 Tapana.K.Panda-Marketing Management-2nd edition 2007, Excel Books, New Delhi
 Cravens.Hills.Wood Ruff-Marketing Management-AITBS Publishers and Distributors,
New Delhi.
 Aaker,Kumar,Dankundli-Marketing Research-7th edition, John Wiley& sons, New
Delhi.
 Nirmal Kumar-Marketing as Strategy, HBS Press, New Delhi.
 Subhash.C.Jain-Marketing Planning and Strategy-6th edition 2007, Thomson, Chennai.

World wide web :

 www.cokecoindia.co.in
 http://brindavanagropepsi.com/
 https://en.wikipedia.org/wiki/Pepsi
 https://scholar.google.co.in/
 https://www.ssrn.com/
Appendices
 Questionnaire

PERSONAL INFORMATION

Name: -

Age: -

Sex: - Male Female

Phone No: -

1. Which soda do you drink more?

 Regular Coca Cola
 Regular Pepsi
 Neither

2. Which one do you prefer the taste of?

 Regular Coca Cola
 Regular Pepsi
 Like them equally
 Neither
 Don't know

3. Which one do you consider to be most popular?

 Regular Coca Cola
 Regular Pepsi
 Don't know

4. Which of the sodas does your local shop offer?

 Coca Cola
 Pepsi
 Both of them
 Neither
 Don't know

5. Which of the marketing campaign do you prefer?

 Always Coca Cola
  Pepsi Celebrity campaign
 Don't know

6. Which one do you find more available when ordering one of the sodas when going to
restaurants?
 Regular Coca Cola
 Regular Pepsi
 Both
 Don't know
 Don't usually order it

7. How often do you drink the soda you usually drink? (Regular Coca Cola or Regular
Pepsi)
 Every day
 2-6 times a week
 Every other week
 Once a month
 Only for certain occasions
 Never

8. What influences your choice of soda? (Regular Coca Cola or regular Pepsi)
 Taste
 Availability
 Customer loyalty
 Brand image
 Price
 Advertisement
 Don't drink these two sodas

9. In which media channels do you usually recognize Coca Cola's advertisements?

 TV
 Radio
 Internet
 Magazines
 Posters
 Neither

10. What's your general impression of Coca Cola's advertisements?

 Traditional
 Trendy
 Controversial
  Commercial
 Enjoyable
 Provocative

List of Table

TABLE TITLE OF THE TABLE PAGE NO.

NO.
Table 1 Response regarding working with Radico Khaitan Pvt. Ltd.
Table 2 Response regarding methods provide by organization
Table 3 Response regarding organizational strategy
Table 4 Response regarding customers relation rate
Table 5 Response regarding advertisement facilities
Table 6 Response regarding special challenges included in advertisement
Table 7 Response regarding advertisement activity
Table 8 Response regarding growth of industry
Table 9 Response regarding increasing productivity
Table 10 Response regarding influence sales

List of Graphs

FIGURE TITLE OF THE TABLE PAGE NO.

NO.
Figure 1 Response regarding working with Radico Khaitan Pvt. Ltd.
Figure 2 Response regarding methods provide by organization
Figure 3 Response regarding organizational strategy
Figure 4 Response regarding customers relation rate
Figure 5 Response regarding advertisement facilities
Figure 6 Response regarding special challenges included in advertisement
Figure 7 Response regarding advertisement activity
Figure 8 Response regarding growth of industry
Figure 9 Response regarding increasing productivity
Figure 10 Response regarding influence sales