CHAPTER 1 INNOVATIVE INNOVATIVE MARKETING MARKE TING STRATEGIES ADOPTED BY COCA COLA
1.1 INTRODUCTION This project is focused on studying the innovative marketing strategies adopted CocaCola. The Coca-Cola Company by is the global soft drink industry leader, le ader, with world headquarter in Atlanta, eorgia. The company and its subsidiaries employ nearly !",""" people around the #orld #orld $yrups, $yrups, concentrates and beverages base for Coca-Cola, the company flagship brand % over &'" other company soft drink brands are manufactured and sold by Coca-Cola company and its subsidiaries in nearly ("" countries the world. )n fact appro*imately +" of company profit come from outside the nited $tates. Coca- Cola company the global soft drink industry leader controlled )ndian soft drink industry till &++. )n &!!, the Coca-Cola company came back to )ndia. /ut the scenario of )ndian soft drink industry had been changed from &++ to &!. The competition in the soft drink industry become very tough. The major competitor at that time were pepsi and parle. 0arle1s best know brand includes Thumsp, 2imca, Citra and others had a market share of (". 3ow Coca-Cola had to make some strategies to survive in this tough competition. 4or this Coca-Cola decided to take over parle, so that the company can take the advantage of parle1s network. This decision was proved very beneficial for Coke as it had ready access to over (,"",""" retailer outlets and '" bottlers of parle1s parl e1s network. Coca-Cola company know their is so much potential in the )ndian soft drink industry and the can increase their sales by marketing strategies. $o, they are spending a huge amount of money on advertising and other sales promotional activities of their brands.
1.2 OBJECTIVE OF THE STUDY STUDY
&. To study the )nnovative marketing strategies strategie s adopted by Coca-Cola. (. To study the advertising effectiveness Coca-Cola on consumer. !. To study the awareness of consumer regarding Coca-Cola.
1.3 HYPOTHESIS
HO :- There is negative relationship between innovation marketing strategies and sale performance of Coca-Cola company. H1 :- There is positive relationship between innovation marketing strategies and sale performance of Coca-Cola company. HO :- There is negative effect on price of Coca-Cola product after innovative marketing strategies. H1 :- There is positive effect on price of Coca-Cola product after innovative marketing strategies.
1.4 NEED OF THE STUDY
This study will help the researcher gain a through insight into how marketing innovation strategies work in the beverage industry. )t will useful beverage industry, as a framework for effective for study on innovative marketing strategies. This study help to impact on marketing practitioners, managers of fast moving consumer goods, academia and the general public. This study are e*pected to help inform decision making in the area of market innovation as competitive strategy.
1.5 RESEARCH METHODOLOGY
To do a research always we use two source of data collection. 0rimary and $econdary source.
P!"#$ D#%#:
)t is the source which collect the primary data through 5uestionnaire and 0rimary source is used by the face-to face survey with the consumer of the company.
S&'()*#$ D#%#:
$econdary source is the internet, maga6ines and reference books of the research.
1.+ LIMITATION OF THE STUDY
This study was limited to only marketing innovation as competitive strategy on sale performance in the carbonate drink market using Coca-Cola Company as the test case . The major limitation of the study was that we could not have access full data. $ale were therefore
calculated in crates7cartons7cases instead of cash. Another limitation was that some of distribution where illiterate and did not want to participate. Against, the company could not provide data and information to cover a ten years period as the researcher would have to wished to have. This was because the company was undergoing restructuring and organi6ation in the early (""" data before the period could not be traced.
1., REVIE OF LITERATURE
P!/!0 K(%/&: 0hilip 8otlern 9born :ay (+,&!& in Chicago, )llinois; is an American marketing author, consultant and professor< currently the $. C. =ohnson >istinguished 0rofessor of )nternational :arketing at the 8ellogg $chool of :anagement at 3orth-#estern niversity. L())!& B&//: 2onnie /ell is a published author of children1s books. $ome of the published credit of 2onnie /ell include The ?istory of the 3ew @ngland 0atriots, The ?istory of the $an 4rancisco @rs, The ?istory of the Coca-Cola. M#! S#"!%: :ari $amith is one of the world1s leading social media thought leaders with deep e*pertise in 4acebook marketing. P&%& F!: 0eter is a bestselling author, keynote speaker and e*pert business advisor. ?is new book Bamechangers Creating )nnovative $trategies for /usiness and /rands is just published.
1. REFERENCES
&. 8otler, 0hilip % Daltman, erald 9=uly &+&;. $ocial :arketing An Approach to 0lanned $ocial Change. 0ublisher American :arketing Association. (. 8otler, 0hilip 9&'+;. :arketing :anagement Analysis, 0lanning and Control. 0ublisher 0rentice ?all. 0age no. +(. !. /ell, 2.,9 (""!;. The story of Coca-Cola /uilt for success. 0ublisher $mart Apple :edia. 0age no. (-. !. The Annual Coca-Cola Eeport 9Available athttp77www.cocacolacompany.com7investors7("&-annual-report-on-form-&"-k 9Accessed on th Fctober,("&G; . 8hatri, $hruti % Herma, :aridu9(""';. Coca-Cola1s Advertising $trategies Changing with Times. 0ublisher )/$ case development center.
CHAPTER 2 PROFILE OF THE RESPONDED 2.1 GENDER 4orm 4ig (.&, we come to know that the gender ratio of the total respondents is almost && 9male female;. Fut of !" respondents there are (( male and I female, that means +! of total respondents are male and (+ of respondents are female.
TABLE 2.1 GENDER
0articular :ale 4emale Total
4requency (( I !"
80
0ercentage9; +! (+ &""
73
70 60 50 40
Frequency
Percentage(%) 27
30 22 20 8
10 0 Male
Female
F! 2.1 G&)*&
2.2 AGE GROUP 4rom table (.( , we can comprehend that +" of total respondents belong to the age group of &'-!". This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group. About I belong to age group between (&-G and & belong to age group of '-G.There are no respondents in age group '" or above.
TABLE 2.2 AGE BAR
0articular &'-!" !&-G '-G '" "r more Total
4requency (& I & " !"
0ercentage9; +" (+ ! " &""
F!. 2.2 A& B# 25 21 20
15 o!o" #eo#le 10
8
5 1 0 16-30
31-45
46-59
Age roup
60 or0more
2.3 OCCUPTION
4rom the fig. (.! we can comprehend that !" that is respondents out of !" respondents belong to student and +' of total respondents belong to working. This is because most of the consumers that prefer or consume Coca-Cola products belong to this categories. Fnly I belong to unemployed people.
TABLE 2.3 OCCUPTION
0articular $tudent #orking nemployed Total
4requency (" & !"
0ercentage9; !" '+ ! &""
Fig. 2.3 Occuption
*nem+#loye& 3% $tuent& 30%
$tuent 'orng *nem+#loye
'orng& 67%
2.4 PREFER ENJOY PRODUCT
)n beverage industry success depend on the test, packaging, product si6e, price, easily available consumption, after sale service etc. 4rom the analysis, it was found that majority of G+ 9&+ people; respondents said they enjoyed drinking Coca-Cola as against &! 9 people
who said they preferred other drinks. !" 9 people; who said they preferred both drink Coca-Coca as well as other product because test are more or less same .
TABLE 2.4 PREFER ENJOY PRODUCT
0articular Jes 3o )t1s not bad Total
4requency &+ !"
0ercentage9; G+ &! !" &""
2.5 INNOVATIVE MARKETING STRATEGIES COMPARE FROM COMPETITOR
Coca-Cola )ndia has a wide range of products in its product line i.e. Coca-Cola, 4anta, $prite, Thums p, :aa6a, :inute :aid and eorgia old. /ottled water was another area where Coca-Cola identified major opportunities. 4rom 4ig (.G, we infer that though the respondents are more often by the Coca-Cola product innovative still like the company to introduce new drinks. )n that fig we conclude that about !! would said they are often, (" respondents are very often company innovative strategies, !" respondents said natural change marketing strategies and only &+ respondents are not satisfy company innovative marketing strategies. :ajority of the people are often because people are more health conscious now and want to manage their calorie intake.
TABLE 2.5 INNOVATIVE COMPARE FROM COMPETITOR
0articular Hery often Fften 3atural 3ot often Total
4requency ' &" G !"
0ercentage9; (" !! !" &+ &""
F!. 2.5 I))(6#%!6& '("0#& 7(" '("0&%!%( 33 35
30
30 20
25 20
17 Frequency
15 10
Percentage
10 9
6
5
5
0
Percentage ,ery o"ten
"ten
atural
Frequency ot o"ten
2.+ PERFORMANCE OF SALE
0erformance of sale is very effective after the innovative in marketing strategies. $ale is depend upon introduce new product, promotion, price, packing9si6e of bottle; distributions system, test etc. 4rom table (.', out of !" respondents &!9!; respondents said performance of sale are change and &9+; respondents have no ideas about the performance of sale. Fnly !9&"; people thought no change in sale.
TABLE 2.+ PERFORMANE OF SALE
0articular Jes 3o 3o ideas Total
4requency &! ! & !"
0ercentage9; ! &" + &""
2., RATE GIVEN BY CUSTOMER ON INNOVATIVE
As seen in the below figure, we infer that thought the respondents are more than effective by innovative in marketing strategies the Coca-Cola product range they would still like the company to introduce new drinks. 4rom 4ig (.+, we conclude that about ! should give effective rating, !" of total people give very effective rate as compare ! say is very ineffective, only ( people give ineffective rating.
TABLE 2., RATE ON INNOVATIVE FROM CUSTOMER
0articular Hery effective @ffective Hery ineffective )neffective Total
4requency &! & + !"
0ercentage9; !" ! ! ( &""
Fig. 2.7 Rate on innovative from customer
1ne.ect)/e& 24%
,ery e.ect)/e 30%
,ery e.ect)/e .ect)/e ,ery )ne.ect)/e
,ery )ne.ect)/e& 3%
1ne.ect)/e
.ect)/e& 43%
2. RECOMMENDATION
Eecommendation and suggestion from customer is effective of company. Customer recommendation and suggestion also implied at the time of innovative in marketing strategies
of companies. #e have seen that majority of people thought is continuously innovative in product, price, place, promotion and distribution. )n table below we conclude that out of !" respondents (+9"; is through continues innovative7 changes in marketing strategies. !9&"; respondent thought there is no need to change or innovative in marketing strategic.
TABLE 2. CUSTOMER RECOMMENDING ON INNOVATIVE MARKETING STRATEGIES
0articular Jes 3o Total
4requency (+ ! !"
0ercentage9; " &" &""
2.8 PRICE AFTER INNOVATIVE
As seen in the below figure, a majority of &G people out of the !" respondents thought that the Coca-Cola Cans are slightly overpriced after innovative in marketing strategies with a &G people also rating it as e*pensive. Fnly G people thought that the Coca-Cola are cheap.
TABLE 2.8 PRICE OF PRODUCT AFTER INNOVATIVE MARKETING STRATEGIES
0articular Cheap $lightly over priced @*pensive Total
4requency G &G && !"
0ercentage9; &' + !+ &""
Price of product after innovative marketing strategies 15
16 14
11
12
Pr)ce o" #ro%uct a"ter )nno/at)/e mar(et)ng trateg)e
10 8 6
5
4 2 0 3ea#
$l)g3tly o/er #r)ce% #en)/e
2.19 HO OFTEN DO YOU BUY THE PRODUCT As it can be seen in the figure (.&", it was concluded that majority of the respondents bought the product slow frequently. This shows the equal brand loyalty of the customers towards Coca-Cola and other companies .
F!. 2.19 H(; (7%&) <=$ 0(*='%
Fe tme a ee
6
Fetne a mont
8
o! o" #eo#le nce"e tme a year
14
a/er
2
0
2
4
6
8
10
12
14
16
2.11 PURCHASING PORTAL PERFERANCE
4rom the below data, we have ascertained that preferred portal for purchase of CocaCola products is the cold drink shop i.e. !!. This is probably because not all communities in )ndia have $upermarkets and other purchasing channels present nearby, whereas, we can find Cold drink shop in every corner. ( prefer to purchase from $upermarkets and Hendor machines. (! prefer to purchase from 0ubs, Eestaurants and :ultiple*es.(" prefer to purchase from eneral $tore.
TABLE 2.11 PURCHASING PORTAL PERFERANCE
0articular $uper market eneral stores Eestaurants 9:c>onald1s, 84C etc.; Cold drink shop Total
4requency + ' +
0ercentage9; ( (" (!
&" !"
!! &""
Fig. 2.11 Channel of purchasing produc
ol rn o#& 33%
$u#er maret& 23%
$u#er maret eneral tore
eneral tore& 20%
etaurant (Mc:onal;<=F etc!) ol rn o#
etaurant (Mc:onal;<=F etc!)& 23%
2.12 HERE RECOGNISE ADVERTISMENT
@very company use mode or channel of promotion of product. )ncrease in market share have require promotion through media. 4rom table (.&( we have seen out of !" respondents most of (( people see advertisement of Coca-Cola product through TH, very less ' people see advertisement on internet and only ( respondents see advertisement on poster. That means Coca-Cola company most use TH mode or channel for promotion of product.
TABLE 2.12 MEDIA CHANNELS RECOGNISE PRODUCT ADVERTISMENT
0articular TH Eadio )nternet 0oster Total
4requency (( " ' ( !"
2.13 ENJOY ADVERTISMENT ON TV
0ercentage9; +! " (" + &""
As it can be seen in the table (.&!, it was conducted that !! of respondents has like Coca-Cola advertisement on TH, rest (" respondents say that is good but nothing special and (+ respondents have said its ok, not bad. Fnly (" of respondents don1t enjoy advertisement on TH.
TA/2@ (.&! C$TF:@E @3=FJ A>H@ET)$:@3T F3 TH 0articular ) really like them They good but nothing special 3od bad ) don1t enjoy them
4requency &" '
0ercentage9; !! ("
I ' !"
(+ (" &""
2.14 COCA-COLA LOGO RECOGNISE
)t is understood from the fact that the 2ogo of the Company still has its image in the minds of the people with all the respondents saying they would recogni6e the BCoca-ColaK 2ogo.
CHAPTER 3 CONCLUSION AND SUGGESTIONS
3.1 INTRODUCTION
)n the report we have seen the graph of often buy product price of product after innovative. )n the graph of often buy product we have seen that the buy for Coca-Cola product is less frequency. )t means that with the increase of sales to target. Company have efficiency of the organi6ation
3.1 SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part of BCoca-Cola )ndiaK. Coca-Cola have to improve on certain points
C(% &77!'!&)'$
To get the achievement of cost efficiency company have to keep certain points in our mind they are resale of scraps, inventory management, work distribution.
I"0(6!) %&')(/($
There is no doubt that the innovative, marketing strategy of company is not good, because many respondents are not satisfy on innovative of company product. /ut from time to time the regular improvement of the technology. )t improves the quality of the product as well as save the time.
O%& 0(!)%
&. 0erform 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 customers7retailers 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 offerings. Coca-Cola )ndia can also introduce some fruit based drinks, as it has already entered the energy drink arena with B/urnK. . The company must keep a watch on its primary competitors in market in order to be able to compete with them. G. 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. '. The company should be always in a position to receive continuous feedback and suggestions from its customers7 consumers as well as from the market and try to solve it without any delay to establish its own good credibility. +. A strong watch should be kept on distributors so that the goodwill of the /EA3> doesn1t get affected.
3.3 CONCLUSION
)t was observed that Coca-Cola has been perceived quite positively as it has been projected. 0eople are aware of the /rand % Awareness of Coca-Cola is quite high in the market. #hen a
product is launched, avid Coke drinkers choose this soda over any other competitor simply because itLs a Coca-Cola product and they trust it. The data has clearly indicated that Coca-Cola products are more popular than the products of 0epsi 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 CocaCola products and purchase them without any specific occasions. )n today1s scenario, customer is the king because he has got various choices around him. )f company 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, company need to be the best. Customer is no more loyal in today1s scenario, so they need to be always on your toes. Coca-Cola products would appear, on the shelf, to have the most e*pensive range of soft drinks common to supermarkets, at almost double the cost of no name brands. This can be for several reasons apart from just to cover the e*tra costs of promotions, for which no name brands do without. #hen people buy Coca-Cola they are not just buying the beverage but also the image that goes with it, therefore to have the price higher reiterates the fact that the product is of a better quality than the rest and that the consumer is not cheap.
BIBLOGRAPHY
B(( > M##?!)&:
&. 8otler, 0hilip % Daltman, erald 9=uly &+&;. $ocial :arketing An Approach to 0lanned $ocial Change. 0ublisher American :arketing Association. (. 8otler, 0hilip 9&'+;. :arketing :anagement Analysis, 0lanning and Control. 0ublisher 0rentice ?all. 0age no. +(. !. /ell, 2.,9 (""!;. The story of Coca-Cola /uilt for success. 0ublisher $mart Apple :edia. 0age no. (-. !. The Annual Coca-Cola Eeport 9Available athttp77www.cocacolacompany.com7investors7("&-annual-report-on-form-&"-k 9Accessed on th Fctober,("&G;
A%!'/&:
&.
$hruti 8hatri, % :aridu Herma (""'. Coca-Cola1s Advertising $trategies Changing with Times. 0ublisher )/$ case development center.
(.
4areeda, $ayed Abdul $amad ("&", Coca-Cola in )ndia )nnovative >istribution $trategies with ME@>1 Approach.
&<!%&:
.
www.coca-colacompany.com
. www.coca-colaindia.com . www.ibscdc.org
