Final Report on Coca Cola

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

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PROJECT REPORT ON COCA-COLA COMPANY SUBMITTED BY: • • • • • •

MUTHU KUMARAN (94) NIDA MAJEED (103) RAGHAV KUMAR (125) RAHUL KALIA (126) RAHUL NAGPAL (127) SIMRAN KAUR PAHUJA (192)

SUBMITTED TO: DR. KARTIK DAVE

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CONTENTS E"E#UTIVE SUMMAR$ % PAGE 2 #HAPTER 1 % PAGE 4%6

INTR&DU#TI&N

#HAPTER 2 % PAGE 7%11

INDUSTR$ PR&'ILE


#&MPAN$ PR&'ILE

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#&#A%#&LA #&MPAN$ % PAGE 13%17 GL&AL MARKET SHARE &' #&#A%#&LA % PAGE 17%1 TRENDS AND '&R#ES % PAGE 19%22 P&TER*S 'IVE '&R#ES % PAGE 22%29 PESTLE ANAL$SIS % PAGE 29%33 S+&T ANAL$SIS % PAGE 33%40 #&#A%#&LA INDIA % PAGE 41%42 PR&DU#TS IN INDIA % PAGE 42%46 MARKETING MI" % PAGE 49%5


“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  

PESTLE ANAL$SIS % PAGE 5%62 S+&T ANAL$SIS % PAGE 60%62

#HAPTER 4 % PAGE 63%6

RESEAR#H METH&D&L&G$


DATA ANAL$SIS

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SUGGESTI&NS AND #&N#LUSI&N

ILI&GRAPH$ % PAGE 3 ANNE"URE % PAGE 4%5

EECUTI!E SUMMARY This report has been prepared with a specific purpose in mind. It outlines the history and current scenario of the Coca-Cola Company globally and locally. The first part of the study takes us through the present state of affairs of the beverage industry and Coca-Cola Company globally.



The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a detailed view of the tasks, which have been undertaken to analyze the market of Coca-Cola i.e. we have performed Competitive, P!T" and !#$T analysis of Coca-Cola Company and P!T" and !#$T analysis of Coca-Cola India in order to identify areas of potential growth for Coca-Cola. #e have also given a brief description of Trends and %orces that are affecting Coca-Cola Company globally.

The main ob&ective of this pro&ect report is to analyze and study in efficient way the current position of Coca- Cola Company. The study also aims to perform 'arket (nalysis of Coca-Cola Company ) find out different factors effecting the growth of Coca-Cola. (nother ob&ective of the study was to perform Competitive analysis between Coca-Cola and its competitors. (part from these ob&ectives this study is also conducted to understand the Customer preferences towards various Coca-Cola products.



1. INR!"#CI!N

INR!"#C!N "et reason go before every enterprise, (nd counsel before every action



*esearch is a human activity based on intellectual investigation and is aimed at discovering, interpreting, and revising human knowledge on different aspects of the world.

$%R&'IN( R')'%RC*+'arketing 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. 'arketing research specifies the information reuired to address these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes and communicates the findings and their implications. -American Marketing Association 'arketing research is about researching the whole companys marketing process. -Palmer (2000)

INR!"#CI!N ! C!C%-C!,% Coca-Cola, the product that has given the world its best-known taste was born in (tlanta, eorgia, on 'ay /, 0//1. Coca-Cola Company is the worlds leading manufacturer, marketer



and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 233 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 notready-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 0453s. 6ow operating in more than 533 countries and producing nearly 233 brands, the CocaCola system has successfully applied a simple formula on a global scale7 8Provide a moment of refreshment for a small amount of money- a billion times a day.9

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. 'ore than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This uniue worldwide system has made The Coca-Cola Company the worlds premier soft-drink enterprise. %rom :oston to :ei&ing, from 'ontreal to 'oscow, Coca-Cola, more than any other consumer product , has brought pleasure to thirsty consumers around the globe. %or more than 00; years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The Compan y 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 euity 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 ob&ectives. The associates of this Company &ointly take responsibility to ensure compliance with the framework of policies and protect the Companys assets and resources whilst limiting business risks.



. IN"#)R PR!/I,'

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IN"#)R PR!/I,'

% 0RI'/ IN)I(* - *' /$C( IN"#)R IN IN"I% %ast 'oving Consumer oods <%'C=, also known as Consumer Packaged oods
The Indian %'C industry witnessed significant changes through the 0443s. 'any players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. (s a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.

:y the turn of the 53th century, the face of the Indian %'C industry had changed significantly. #ith the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing e>posure to new domestic and foreign products through different media, such as television and the Internet. (part from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers? personal



consumption. The realization of the customer?s growing awareness and the need to meet changing reuirements and preferences on account of changing lifestyles reuired the %'C producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the %'C industry. Incr eased availability of retail space, rapid urbanization, and ualified manpower also boosted the growth of the organized retailing sector.

@"" led the way in revolutionizing the product, market, distribution and service formats of the %'C industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The %'C sector also received a boost by government led initiatives in the 533A budget such as the setting up of e>cise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on %'C products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Bnlike some industries, such as automobiles, computers, and airlines, %'C does not suffer from mass layoffs every time the economy starts to dip. ( person may put off buying a car but he will not put off having his dinner.

Bnlike other economy sectors, %'C share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to lu>urious needs. The %'C sector, which is growing at the rate of 4 is the fourth largest sector in the Indian conomy and is worth *s.4A333 cr. The main contributor, making up A5 of the sector, is the !outh Indian region. It is predicted that in the year 5303, the %'C sector will be worth *s.02A333 cr. The sector being one of the biggest sectors of the Indian conomy provides up to 2 million &obs.


% 0RI'/ IN)I(* - 0''R%(' IN"#)R IN IN"I% 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 e>isting consumers.

(EVERAGE S

N&N% AL#&H&LI#

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The bever age indust ry 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 follows7     

(lcoholic, non-alcoholic and sports beverages. 6atural and !ynthetic beverages. In-home consumption and out of home on premises consumption. (ge wise segmentation i.e. beverages for kids, for adults and for senior citizens. !egmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.



If the behavioural patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a lu>ury 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. %our strong strategic elements to increase consumption of the products of the beverage industry in India are7



The uality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they en&oy consuming beverages.



The credibility and trust needs to be built so that there is a very strong and safe feeling



that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, rela>ation, stimulation, refreshm ent, well-being or



prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an



appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.



4. C!$P%N PR!/I,'



C!$P%N PR!/I,'

$I))I!N+ $ur *oadmap 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.

I)I!N+ $ur vision serves as the framework for our *oadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, uality growth.  

People+ :e a great place to work where people are inspired to be the best they can be. Portfolio+ :ring to the world a portfolio of uality beverage brands that anticipate



and satisfy people?s desires and needs. Partners+ 6urture a winning network of customers and suppliers, together we create



mutual, enduring value. Planet+ :e a responsible citizen that makes a difference by helping build and support sustainable communities.





Profit+ 'a>imize long-term return to shareowners while being mindful of our overall



responsibilities. Producti5ity+ :e a highly effective, lean and fast-moving organization.

6INNIN( C#,#R'+ $ur #inning Culture defines the attitudes and behaviours that will be reuired of us to make our 5353 Dision a reality.

,I' !#R %,#') + $ur values serve as a compass for our actions and describe how we behave in the world. 



,eadership+ The courage to shape a better future. Collaboration+ "everage collective genius. Inte2rity+ :e real. %ccountability+ If it is to be, it?s up to me. Passion+ Committed in heart and mind. "i5ersity+ (s inclusive as our brands.



7uality+ #hat we do, we do well.

   

/!C#) !N *' $%R&'+ 

%ocus on needs of our consumers, customers and franchise partners. et out into the market and listen, observe and learn.  Possess a world view.  %ocus on e>ecution in the marketplace every day.  :e insatiably curious. 

6!R& )$%R+    

(ct with urgency. *emain responsive to change. @ave the courage to change course when needed. *emain constructively discontent.

 #ork efficiently.

%C ,I&' !6N'R)+   

:e accountable for our actions and inactions. !teward system assets and focus on building value. *eward our people for taking risks and finding better ways to solve problems.


“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  "earn from our outcomes -- what worked and what didnt.

0' *' 0R%N"+ Inspire creativity, passion, optimism and fun.

*I)!R !/ C!C%-C!,% The prototype Coca-Cola recipe was formulated at the agle Erug and Chemical Company, a drugstore in Columbus, eorgia by Fohn Pemberton, srcinally as a coca wine called Pemberton?s %rench #ine Coca. @e may have been inspired by the formidable success of Din 'ariani, a uropean cocawine. In 0//1, when (tlanta and %ulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of %rench #ine Coca. The first sales were at Facob?s Pharmacy in (tlanta, eorgia, on 'ay /, 0//1. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the Bnited !tates at the time due to the belief that carbonated water was good for the health.G4H Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on 'ay 54 of the same year in the %tlanta 8ournal. :y 0///, three versions of Coca-Cola  sold by three separate businesses  were on the market. (sa riggs Candler acuired a stake in Pemberton?s company in 0//J and incorporated it as the Coca Cola Company in 0///. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen7 F.C. 'ayfield, (.$. 'urphey, C.$. 'ullahy and .@. :loodworth. 'eanwhile, Pemberton?s alcoholic son Charley Pemberton began selling his own version of the product.

Fohn Pemberton declared that the name KCoca-ColaK belonged to Charley, but the other two manufacturers could continue to use the formula. !o, in the summer of 0///, Candler sold his beverage under the names Lum Lum and Moke. (fter both failed to catch on, Candler set out



to establish a legal claim to Coca-Cola in late 0///, in order to force his two competitors out of the business. Candler purchased e>clusive rights to the formula from Fohn Pemberton, 'argaret Eozier and #oolfolk #alker. @owever, in 0402, Eozier came forward to claim her signature on the bill of sale had been forged, and subseuent analysis has indicated Fohn Pemberton?s signature was most likely a forgery as well. In 0/45 Candler incorporated a second company, The Coca-Cola Company
$n (pril 5A, 04/;, Coca-Cola, amid much publicity, attempted to change the formula of the drink with K6ew CokeK. %ollow-up taste tests revealed that most consumers preferred the



taste of 6ew 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 Fuly 03, 04/;. $n %ebruary J, 533;, the Coca-Cola Company announced that in the second uarter of 533; they planned to launch a Eiet Coke product sweetened with the artificial sweetener sucralose, the same sweetener currently used in Pepsi $ne. $n 'arch 50, 533;, it announced another diet product, Coca-Cola Nero, sweetened partly with a blend of aspartame and acesulfame potassium. In 533J, Coca-Cola began to sell a new Khealthy sodaK7 Eiet Coke with vitamins :1, :05, magnesium, niacin, and zinc, marketed as KEiet Coke Plus9. $n Fuly ;, 533;, it was revealed that Coca-Cola would resume operations in Ira for the first time since the (rab "eague boycotted the company in 041/. In (pril 533J, in Canada, the name KCoca-Cola ClassicK was changed back to KCoca-Cola.K The word KClassicK was truncated because K6ew CokeK was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In Fanuary 5334, Coca-Cola stopped printing the word KClassicK on the labels of 01-ounce bottles sold in parts of the southeastern Bnited !tates. The change is part of a larger strategy to re&uvenate the product?s image. In 6ovember 5334, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Eiet Coke.

(,!0%, $%R&' )*%R' !/ C!C%-C!,% In 5334, the company generated revenues of OA0 billion with O1./ billion net income. (n increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks imately J; of revenue from international sales, e>posing it to

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currency fluctuations, which are particularly adverse with a stronger B.!. Eollar
Coca-Cola

nterprises will take over Coke?s bottling operations in 6orway and !weden, becoming a uropean-focused producer and distributor. In 'arch 5303, Coca-Cola Company entered into discussions to buy the *ussian &uice company, $($ 6idan Fuices. The company is J; owned by a private euity firm in "ondon and 5; by its *ussian founders and cont rols 02.; of the *ussian &uice market. If successful, the purchase would add to Coca-Cola?s 53.; market share, passing Pepsi?s A3 market share. The *ussian &uice market is estimated to be OA.5 billion dollars, and estimates of 6idan?s purchase price are between O;13-O153 million. In (pril 5303, Coca-Cola Company purchased a ma&ority share of Innocent, the :ritish fruit smoothie maker. "ast year the company bought an 0/ share of the company for more than O2; million, and recent purchases of additional shares increased Coke?s stake to ;/. In Fune 5303, Coca-C ola Company agree d to pay Er Pepper !napple roup
OJ0;

million for the continued right to sell their products following the company?s acuisition of Coca-Cola nterprises t 53 years with an option to renew for an additional 53 years.



R'N") %N" /!RC') he (lobal 'conomic Recession hreatens !5erall "emand+ In 533/ and 5334, the global economy has fallen into a recession. 6ot &ust the Bnited !tates but countries from all over the world have felt the impacts of the 533/ %inancial Crisis. This may be a problem for Coke, which derives appro>imately J; of its sales from outside 6orth (merica. !till, the company has positioned itself well in international markets both organically and through acuisitions, such as that of Chinese &uice maker @uiyuan for O5.2 billion. @owever the company was unsuccessful with its purchase of @uiyuan as it broke antitrust laws in China. $n 'arch ;, 5303, Coke?s C$ said that emerging markets are bouncing back uicker than more developed markets.

New %5ersion to )oda hreatens $ain 0usiness+ J2 of the Coca Cola Company?s products are classified as carbonated soft drinks, making it particularly sensitive to changes in demand for C!E. Consumer demand for C!E has been negatively affected by concerns about health and wellness . This is true across most of M$?s markets. The re has been an increase in the numb er of regulations regarding C!E in the Bnited !tates in response to the heightened desire for healthy food consumption. In 5331, many state public school systems banned the sale of soft drinks on their campuses. The Centre for !cience and Public Interest proposed that a warning label be placed on all beverages containing more than 0Ag of sugar per 05-oz serving. This proposal would affect all non-diet, full calorie drinks produced by M$. These factors have driven a shift in consumption away from C!E to healthier alternatives, such as tea, &uices, and water. #ithin the C!E segment consumers have been moving away from sugared drinks, opting instead for diet beverages, which do not generally contain any sugar or calories. Though M$ has been somewhat slow to respond to this shift in consumer prefere nces, it has recently begun to increase its development of both diet C!E and non-C!E beverages. M$ is faced with the task of balancing the risk of new innovations with the low growth rates of



established brands, a predicament for manufactures throughout the beverage industry.

Inte2rated 0ottler )trate2y Increases /le9ibility+ (fter C$ 6eville Isdell was brought out of retirement in 5332 to revive the then flagging beverage maker, one of the first areas that he targeted for improvement was M$?s frayed relations with its e>tensive network of bottlers. !ince consolidating all company-owned bottlers into the :ottling Investments division, Isdell has continued to increase M$?s interest in its bottlers through stake purchases or outright buyouts. This strategy represents a weakening of the division between M$?s production and distribution operations. Isdell believes that by combining production and distribution operations the company will have enhanced its ability to uickly respond to changing market conditions. In M$?s 533J A (nalyst call, Isdell credited the outright purchase of Coca-Cola :ottlers Philippines ample, Coca-Cola nterprises
0ottled 6ater /allin2 !ut of /a5our+ In A 5334, Easani bottled water?s revenues fell by double digits+ this decrease is emblematic of the bottled water industry as a whole. In (ugust 5334, the #all !treet Fournal reported that sales of bottled water had fallen for the first time in five years.

The combination of the

recession and upper class consumers? increased environmental consciousness

has lead many

customers to cut back on bottled water in favour of tap water and reusable containers. %ollow ing this trend, at least one town in #ashington state and one in (ustralia have outlawed the selling of bottled water within their city limits. In 533/, bottled water was the third most popular beverage perts don?t e>pect bottled water to bounce back



anytime soon.

"ollar %ffects Int ernational Performance+ (nother trend affecting Coca-Cola is the relative strength of the B.!. Eollar ecutives e>pect currency fluctuations to adversely affect A34 operating income by 03-05 and 234 operating income by high single digits. M$ has broad e>posure to foreign currencies and actively hedges a large portion of these to avoid wide swings in earnings from currency fluctuations. (lthough this hedging insulates from the potential downside of a strengthening dollar, it also limits larger gains from drastic downswings in the dollar?s value.

Commodity Cost /luctuations %ffect $ar2ins+ The Coca-Cola Companys profitability can be affected both directly and indirectly by the costs of various production inputs. M$ itself is responsible for purchasing the raw materials used to make its concentrates and syrups. Dariations 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 M$s profitability, though in a more indirect way. If the raw materials necessary for bottling become more e>pensive, the bottler may be forced to drastically raise prices to compensate. ! uch a price increase would likely hurt M$, given the competitive nature of the non-alcoholic beverage industry, and provide a possible incentive for consumers to switch to other companies beverages.



(luminium, corn, and PT resin are three e>amples of such production goods used by bottlers that could have significant bearing on the Coca-Cola Companys profit margins. In 533J, the prices of these commodities rose drastically with general commodities bubble and dramatically pressured margins. They receded in 533/, but the possibility of another significant rise in Commodities represents a constant threat to profits.

P!'R:) /I' /!RC')

RI%,R %$!N( ';I)IN( /IR$)+ The greatest competition that Coca-cola faces is from the rival sellers within the industry.



Coca-Cola, Pepsi Co, and Cadbury !chweppes are among the largest competitors in this industry, and they are all globally established which creates a great amount of competition. (side from these ma&or players, smaller companies such as Cott Corporation and 6ational :everage Company make up the remaining market share. (ll five of these companies make a portion of their profits outside of the Bnited !tates. Though Coca-Cola owns four of the top five soft drink brands
(ccording to :everage Eigest?s 533/ report on carbonated soft drinks, PepsiCo?s B.!. market share has increased to A3./, while the Coca-Cola Company?s has decreased to 25.J 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.

KThe Coca-Cola CompanyK is the largest soft drink company in the world. very year /33,333,333 servings of &ust KCoca-ColaK are sold in the Bnited !tates alone. :ottli ng plants with some e>ceptions 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 B! market. $verall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. @owever, e>ceptions include India, !audi (rabia and Pakistan.

:y most accounts, Coca-Cola was India?s leading soft drink until 04JJ 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 reuired by the %oreign >change *egulation (ct <%*(=.

In 04//, PepsiCo gained entry to India by creating a &oint venture with the Pun& ab government-owned Pun&ab (gro Industrial Corporation
In *ussia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold #ar ended. In 04J5, Pepsi Co Company struck a barter agreement with the government of the !oviet Bnion, in which Pepsi Co was granted e>portation and #estern marketing rights to !tolichnaya vodka in e>change for importation and !oviet marketing of Pepsi-Cola.

This e>change led to Pepsi-Cola being the first foreign product sanctioned for sale in the B.!.!.*. Pepsi, as one of the first (merican products in the !oviet Bnion, became a symbol of that relationship and the !oviet policy.

:rand name loyalty is another competitive pressure. The :rand Meys Customer "oyalty



"eaders !urvey <5332= shows the brands with the greatest customer loyalty in all industries. Eiet Pepsi ranked 0Jth and Eiet Coke ranked A1th as having the most loyal customers to their brands. The new competition between rival sellers is to create new varieties of soft drinks, such as vanilla and cherry, in order to increase sales and getting new customers.

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 e>pected to e>ceed the developed markets, rivalry in international market is going to be more pronounced. Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi?s positioning as KThe Choice of a 6ew eneration.K In 04J;, 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 0443s, Pepsi launched its most successful long-term strategy of the Cola #ars, Pepsi !tuff. Consumers were invited to KErink Pepsi, et !tuffK and collect Pepsi Points on billions of packages and cups. They could redeem the points for free Pepsi lifestyle merchandise. (fter researching and testing the program for over two years to ensure that it resonated with consumers, Pepsi launched Pepsi !tuff, which was an instant success. Tens of millions consumers participated. Pepsi outperformed Coke during the summer of the (tlanta $lympics, held at Coke?s hometown where Coke was the lead sponsor for the ames. Eue to its success, the program was e>panded to include 'ountain Eew into Pepsi?s international markets worldwide. The company continued to run the program for many years, continually innovating with new features each year. Coca-Cola and Pepsi engaged in a Kcyber-warK with the re-introduction of Pepsi !tuff in 533; ) Coca-Cola retaliated with Coke *ewards. This cola war has now concluded, with Pepsi !tuff ending its services and Coke *ewards still offering prizes on their website. :oth were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 05 or 52 pack bo> tops, then submitting codes online for a certain number of points.



@owever, Pepsi?s online partnership with (mazon allowed consumers to buy various products with their KPepsi PointsK, such as mpA downloads. :oth Coca-Cola and coke previously had a partnership with the iTunes !tore.

P!'NI%, 'NR%N)+ 6ew 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 distributio n 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 e>isting firms.

(nother barrier to entry is the high fi>ed costs for warehouses, trucks, and labour, and economies of scale. 6ew entrants cannot compete in price without economies of scale. These high capital reuirements and market saturation make it e>tremely difficult for companies to enter the soft drink industry therefore new entrants are not a strong competitive force. Capital reuirements for producing, promoting, and establishing a new soft drink traditionally have been viewed as e>tremely high. (ccording to industry e>perts, this makes the likelihood of potential entry by new players uite low, e>cept perhaps in much localized situations that matter little to Coke or Pepsi. Let, while this view may reflect conventional wisdom, some industry observers uestion 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 0445, when they both were not able to e>plain a drop in their Fune 0445 sales.

)#0)I#')+ 6umerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit &uices are the more popular substitutes. (vailability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. $verall total liuid consumption in the Bnited !tates in 0440 included Coca-



Cola?s 03 share of all liuid consumption.

8%or years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi. :ut as the pop fight has topped out, the industry?s giants have begun relying on new product flavours and looking to noncarbonated beverages for growth.9 !ubstitute products are those competitors that are not in the soft drink industry. !uch substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, &uices etc. :ottled 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.

:lended coffees are also becoming popular with the increasing number of !tarbucks, :arista and CCE stores that offer many different flavours to appeal to all consumer markets. It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong
The growth rate has been recently criticized due to the market saturation of soft drinks. Eatamonitor <533;= stated, 8"ooking ahead, despite solid growth in consumption, the global soft drinks market is e>pected to slightly decelerate, reflecting stagnation of market prices.9 The change attributed to the other growing sectors of the non-alcoholic industry including tea ) coffee is 00./ and bottled water is 4.A. !ports drinks and energy drinks are also e>pected 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 <533;=. :ecause 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. !o in order to compete with the substitutes industry, cocacola has diversified from &ust carbonated drink industry to other substitute and so have other brands like Pepsi, Er pepperQ!napple.

0%R(%NIN( P!6'R !/ 0#'R)+ Individual consumers are the ultimate buyers of soft drinks. @owever, 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. #hile 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 04/3?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. Bntil 04/3, Coke and Pepsi were somewhat restricted in owning bottling facilities, which was viewed as a restraint of free trade. Fimmy 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. (lso, the three most important channels for soft drinks are supermarkets, fountain sales, and vending. In 04/J, supermarkets accounted for about 23 of total B.!. soft drink industry sales, fountain sales represented about 5;, and vending accounted for appro>imately 0A. $ther retailers represent the remaining percentage. #hile 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.

0%R(%NIN( P!6'R )#PP,I'R)+ The principal raw material used by the soft-drink industry in the Bnited !tates is high



fructose corn syrup, a form of sugar, which is available from numerous domestic sources. The principal raw material used by the soft-drink industry outside the Bnited !tates is sucrose. It likewise is available from numerous sources. (nother raw material increasingly used by the soft-drink industry is aspartame, a sweetening agent used in low-calorie soft-drink products. Bntil Fanuary 044A, aspartame was available from &ust one source -the 6utra!weet Company, a subsidiary of the 'onsanto Company- in the Bnited !tates due to its patent, which e>pired at the end of 0445. Coke managers have long held ?power? over sugar suppliers. They view the recently e>pired aspartame patents as only enhancing their power relative to suppliers.

P')', %N%,)I) !/ C!C%- C!,% P!T" stands for Political, 'conomic, )ocial, echnological, ,egal and 'nvironmental. It is a tool that helps the organisations for making strategies and to know the RT*6(" 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 P!T" analysis to know about the e>ternal environment
Political %nalysis+ Political factors are how far a government intervenes in the operations of the company. The political factors may include ta> policy, trade restrictions, environmental policy, laws imposed on the recruiting labours, amount of permitted goods by the government and the service provided by the government. lobally, Coca-Cola beverages being a non-alcoholic industry falls under the %E( <%ood and Erug (dministration=, it is an agency in the Bnited !tates Eepartment of @ealth and @uman !ervices. Its headuarters is in B!( and it has started opening offices in foreign countries as well. The &ob of the %E( 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 %E(. The company also has to take into consideration of the regulation imposed by %E( on plastic bottled products. (part from %E( the other political factors includes ta> policies and accounting standards. The accounting standards used by the company changes from time to time which have a significant role in the reported results. The company also is sub&ected to income ta> policies according to the &urisdiction of various countries. In addition to this, the company is also sub&ected to import and e>cise duties for distribution of the products in the countries where it does not have the outsourcing units. 'oreover, 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. (lso the situations like the unsure conditions prevailing in Ira and escalation of the terrorist activities in these areas could affect the international market of our product. It creates an inability for the company to penetrate in the markets of such countries.

'conomic /actors+ The economic factors analyze the potential areas where the firm can grow and e>pand. It includes the economic growth of the country, interest rates, e>change rates, inflation rates, wage rates and unemployment in the country. The company first analyzes the economic condition of the country before venturing into that country. #hen 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 B! stands at around J5. (long with this the company uses 1A various types of currencies other than B! Eollar. @ence there is a definite impact in the revenues due to the fluctuating foreign currency e>change rates. ( strong and weak currency tends to affect the e>porting of the products



globally. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. #hen there is an increase in the interest rates, it may deter the company in further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand, when there is an increase in the inflation the employee demand for a higher wage rate to cope up with the cost of living. This comes as additional cost for the company which cannot be reflected in the price of the final product as the competition and risk in this segment is higher. This is a threat in the e>ternal environment faced by the company. %rom the above e>planation it is clearly seen that the economic factors involves a ma&or impact in the behaviour of the company during various economic situations.

)ocial /actors+ !ocial 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 ad&ust itself to the changing society. The company adapts various management strategies to adapt to these social trends. Coca-Cola which is a :5C company, is directly related to the customer, so social changes are the most important factors to consider. ach and every country has a uniue 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 AA33S 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 conseuences, mainly obesity which is the second social factor in the soft drinks industry. It inspired the company to venture into the areas of Eiet coke and zero calorie soft drinks. The problem of obesity is taken seriously among the youngsters who like to maintain a good physiue. @ence coke introduced dietary products for those youngsters who can en&oy coke



with zero calories. In one of the study it is said that 8Consumer from the age groups AJ to ;; are also increasingly concerned with nutrition9. !ince many are aware, they are concerned with the longevity of their lives. This will affect the demand of the company in the e>isting product and also is an opportunity to venture into new health and energy drinks industry. Population growth rate and the age distribution is another social factor to be considered. It is very important because non-alcoholic markets have most of its share from the children and youngsters. (dults used to celebrate mostly with alcohol. The age distribution of the country becomes important for the success of the product in a country.

echnolo2ical /actors+ Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of the products is relatively a "ow-Tech business, although the creation of a new product with the perfect blend and taste is a science


,e2al /actors The legal factors include discrimination law, customer law, antitrust law, employment law and health and safety law. In Coca-Cola the business is sub&ected 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 B! the products of the company is sub&ected to various acts like %ederal %ood, Erug and Cosmetic (ct, the %ederal Trade Commission (ct, $ccupation !afety and @ealth (ct, various environment related acts and regulations, the production, distribution, sale and advertising of all the products are sub&ected to various laws and regulations. Changes in these laws could result in increased costs and capital e>penditures, which affects the company profitability and also the production and distribution of the products. Darious &urisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health conseuences. These reuirements if become applicable in the future the company must be ready to accept and have necessary changes in hand for the same.

'n5ironment /actors These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. (lso the company must follow the environmental issues related to the product manufacturing, packaging and distributing in various countries. It must adhere to the norms and market the product accordingly. Bsage of renewable plastic in the PT bottles is followed by the company strictly.

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)R'N(*')+ 6!R,":) ,'%"IN( 0R%N" Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. :usiness-#eek and Inter-brand, a branding consultancy, recognize. Coca-Cola as one of the leading brands in their top 033 global brands ranking in 5331.The :usiness #eek-Inter-brand valued Coca-Cola at O1J,333 million in 5331. CocaCola ranks well ahead of its close competitor Pepsi which has a ranking of 55 having a brand value of O05,143 million %urthermore+ Coca-Cola owns a large portfolio of product brands. The company owns four of the top five soft drink brands in the world7 Coca-Cola, Eiet Coke, !prite and %anta. !trong brands allow the company to introduce brand e>tensions such as Danilla Coke, Cherry



Coke and Coke with "emon. $ver the years, the company has made large investments in brand promotions. Conseuently, Coca-cola is one of the best recognized global brands. The companys strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate e>isting ones.

,%R(' )C%,' !/ !P'R%I!N) #ith revenues in e>cess of O52 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 0//1 in the B!. The company currently sells its products in more than 533 countries. $f the appro>imately ;5 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 0.2 billion. The companys operations are supported by a strong infrastructure across the world. CocaCola owns and operates A5 principal beverage concentrates andQor syrup manufacturing plants located throughout the world. In addition, it owns or has interest in AJ operations with 4; principal beverage bottling and canning plants located outside the B!. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures &uice concentrates. The companys large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity.

R!0#) R''N#' (R!6* IN 4 )'($'N) Coca-Colas revenues recorded a double digit growth, in three operating segments. These three segments are "atin (merica, ast, !outh (sia, and Pacific *im and :ottling investments. *evenues from "atin (merica grew by 53.2 during fiscal 5331, over 533;. Euring the same period, revenues from ast, !outh (sia, and Pacific *im grew by 03.1



while revenues from the bottling investments segment by 04.4. Together, the three segments of 8"atin (merica9, 8ast, !outh (sia9 and 8Pacific *im9 bottling investments, accounted for A2./ of total revenues during fiscal 5331. *obust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 5331.

6'%&N'))+ N'(%I' P#0,ICI The Coca-Cola Company has been involved in a number of controversies and lawsuits related to its relationship with human rights violations and other perceived unethical practices. There have been continuing criticisms regarding the Coca-Cola Company?s relation to the 'iddle ast and B.!. foreign policy. The company received negative publicity in India during !eptember 5331.The company was accused by the Centre for !cience and nvironment
$n 03 Eecember 533/, the B! %ood and Erug (dministration <%E(= wrote to 'r. 'uhtar Ment, President and Chief >ecutive $fficer, to warn him that the %E( had concluded that Coca-Cola?s product Eiet Coke Plus 53 %" $N was is in violation of the %ederal %ood, Erug, and Cosmetic (ct. In Fanuary 5334, the B! consumer group the Centre for !cience 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 Ditamin #ater. Claims say that the AA grams of sugar are more harmful than the vitamins and other additives are helpful.



),#((I)* P'R/!R$%NC' IN N!R* %$'RIC% Coca-Colas performance in 6orth (merica was far from robust. 6orth (merica is CocaColas core market generating about A3 of total revenues during fiscal 5331. Therefore, a strong performance in 6orth (merica is important for the company.

In 6orth (merica the sale of unit cases did not record any growth. Bnit case retail volume in 6orth (merica decreased 0 primarily due to weak sparkling beverage trends in the second half of 5331 and decline in the warehouse-delivered water and &uice businesses. 'oreover, the company also e>pects performance in 6orth (merica to be weak during 533J. !luggish performance in 6orth (merica could impact the companys future growth prospects and prevent Coca-Cola from recording a more robust top-line growth.

"'C,IN' IN C%)* /R!$ !P'R%IN( %CIII') The companys cash flow from operating activities declined during fiscal 5331. Cash flows from operating activities decreased J in 5331 compared to 533;. 6et cash provided by operating activities reached O;,4;J million in 5331, from O1,25A million in 533;. CocaColas cash flows from operating activities in 5331 also decreased compared with 533; as a result of a contribution of appro>imately O501 million to a ta>-ualified trust to fund retiree medical benefits.

The decrease was also the result of certain marketing accruals recorded in 533;.Eecline in cash from operating activities reduces availability of funds for the companys investing and financing activities, which, in turn, increases the companys e>posure to debt markets and fluctuating interest rates.

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Euring 5331, its acuisitions included Merry :everages, tended Coca-Colas control over manufacturing and distribution &oint ventures in nine Chinese provinces. In ermany the company acuired (pollinaris which sells sparkling and still mineral water. Coca-Cola has also acuired a 033 interest in TFC @oldings, a bottling company in !outh (frica. Coca-Cola also made acuisitions in (ustralia and 6ew Nealand during 5331. These acuisitions strengthened Coca-Colas international operations. These also give Coca- Cola an opportunity for growth, through new product launch or greater penetration of e>isting markets. !tronger international operations increase the companys capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. $n 5; %ebruary 5303, Coco cola confirms to acuire the Coca cola enterprises
(R!6IN( 0!,'" 6%'R $%R&' :ottled 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 B! generated revenues of about O0;.1 billion in 5331. 'arket consumption volumes were estimated to be A3 billion litres in 5331. The market?s consumption volume is e>pected to rise to A/.1 billion units by the end of 5303. This represents a C(* of 1.4 during 533;-5303. In terms of value, the bottled water market is forecast to reach O04.A billion by the end of 5303. In the bottled water market, the revenue of flavoured water


could leverage its strong position in the bottled water segment to take advantage of growing demand for flavoured water.

(R!6IN( *I)P%NIC P!P#,%I!N IN #.) @ispanics are growing rapidly both in number and economic power. (s a result, they have become more important to marketers than ever before. In 5331, about 00.1 million B! households were estimated to be @ispanic. This translates into a @ispanic population of about 25 million. The B! Census estimates that by 5353, the @ispanic population will reach 13 million or almost 0/ of the total B! population. The economic influence of @ispanics is growing even faster than their population. 6ielsen 'edia *esearch estimates that the buying power of @ispanics will e>ceed O0 trillion by 533/- a ;; increase over 533A levels. Coca-Cola has e>tensive operations and an e>tensive product portfolio in the B!. The company can benefit from an e>panding @ispanic population in the B!, which would translate into higher consumption of Coca-Cola products and higher revenues for the company.

*R'%)+ IN'N)' C!$P'II!N 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. (lso, the company faces competition from various non-alcoholic sparkling beverages including &uices and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, including the B!, PepsiCo is one of the companys primary competitors. $ther significant competitors include 6estle, Cadbury !chweppes, roupe E(6$6 and Mraft %oods.



Competitive factors impacting the companys business include pricing, advertising, sales promotion programs, product innovation, and brand and trademark development and protection. Intense competition could impact Coca-Colas market share and revenue growth rates.

"'P'N"'NC' !N 0!,IN( P%RN'R) 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 5331, appro>imately /A of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. (s 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. If Coca-Cola is unable to provide an appropriate mi> of incentives to its bottling partners, then the partners may take actions that, while ma>imizing their own short-term profits, may be detrimental to Coca-Cola. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola. !uch actions could, in the long run, have an adverse effect on Coca-Colas profitability. In addition, loss of one or more of its ma&or customers by any one of its ma&or bottling partners could indirectly affect Coca-Colas business results. !uch dependence on third parties is a weak link in Coca-Colas operations and increases the companys business risks.

),I((I)* (R!6* !/ C%R0!N%'" 0''R%(') B! consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the B!. The B! carbonated soft drinks market generated



total revenues of O1A.4 billion in 533;, this representing a compound annual growth rate pected to drive the market to a value of O15.4 billion by the end of 5303. 'oreover in the recent years, beverage companies such as Coca-Cola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content, and have been implicated for facilitating poor diet and increasing childhood obesity. 'oreover, the B! is the companys core market. Coca-Cola already e>pects its performance in the region to be sluggish during 533J. Coca-Colas revenues could be adversely affected by a slowdown in the B! carbonated beverage market.

Coca-Cola India was the leading soft drink brand in India till 04JJ when it was forced to close down its operation by a socialist government in the drive for self sufficiency. (fter 01



years of absence, coca cola returned to India and witnessed a different culture and economic platform. Euring their absence, Parle brothers introduced a new type of cola called T@B'! BP. (long with, they also formulated a lemon flavoured drink, "I'C(, and mango flavoured, '((N(. In 044A, coca cola bought the whole Parle :rother operatio n, in a hope to beat the main competitor tensive market research in India. They ascertained that in India A (s must be applied+ (ffordability, (vailability and (cceptability. Coca-Cola learnt that they were competing with local drinks such as 86imbu Pani9, 86arial Pani9, 8"assi9 etc. and reached to a conclusion that competitive pricing was unavoidable. !ince then they introduced a 533 ml glass bottle for *s.;.

%urther, they had different advertising campaigns for different regions of the country. In the southern part, their strategy was to make :ollywood or Tamil stars to endorse their products. In various regions they tried portraying coca cola products with different regional food products. $ne of the most famous ad campaigns in India was Thanda 'atlab Coca-Cola+ they featured the same uote with different regional entities. Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e. 13 in Carbonated !oft drinks !egment, A1 in %ruit drinks !egment, AA in Packaged water !egment, compared to its arch rival, Pepsi. Eiversifying their product range and having a competitive pricing policy, they have regained their throne. #ith virtually all the goods and



services reuired to produce and market Coca-Cola being made in India, the business system of the Company directly employs appro>imately 1,333 people, and indirectly creates employment for more than 05;,333 people in related industrie s through its vast procurement, supply, and distribution !ystem. The Indian operations comprises of ;3 bottling operations, 5; owned by the Company, with another 5; being owned by franchisees. That apart, a network of 50 contract packers manufactures a range of products for the Company. $n the distribution front, 03-tonne trucks U open bay three-wheelers that can navigate the narrow alleyways of Indian cities U constantly keep our brands available in every nook and corner of the Countrys remotest areas.

PR!"#C) !/ C!C%-C!,% IN"I%

C!C%-C!,%+In India Coca-Cola was leading soft drink till 04JJ when overnment policies necessitated its departure. Coca-Cola made its return to the country in 044A 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. $ver the past fourteen years has enthralled consumers in India by connecting with passions of India U Cricket, movies, music ) food. Coca-Colas advertising campaigns “8o Chaho *o 8aye” ) “,ife *o oh %ise” were very popular ) had entered youths vocabulary. In

5335.Coca-Cola launched its iconic campaign “handa $atlab Coca-Cola” which sky rocketed the brand to make it Indias favourite soft drink brand.

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,I$C%+"imca was introduced in 04J0 in India. "imca has remained unchallenged as the 6o.0 sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of 8%reshness9. "imca can cast a tangy refreshing spell on anyone, anywhere. Eerived from 86imbu9 S 8Faise9 hence "ime !a, "imca has lived up to its promises of refreshment and has been the srcinal thirst choice of millions of customers for over A decades.

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*#$) #P+Thums up is a leading sparkling soft drink and most trusted brand in India. $riginally introduced in 04JJ, Thums up was acuires by The Coca-Cola Company in 044A. Thums up is known for its strong, fizzy taste and it confident, mature and uniuely masculine attitude.



This brand clearly seeks to separate the men from the boys.

(,%))

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)PRI'+!prite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. "aunched in 0444, !prite with its cut-thru perspective has managed to be a true teen icon.

R(0 533ml, A33ml

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%anta entered the Indian market in the year 044A. $ver the years %anta has occupied a strong market place and is identifies as 8The %un Catalyst9. Perceived as a fun youth brand, %anta stands for its vibrant colour, tempting taste and tingling bubbles that not &ust 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.

(,%)) 533ml, A33ml

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$IN#' $%I" P#,P !R%N('+The history of the 'inute 'aid brand goes as far back as 042; when the %lorida %ood Corporation developed orange &uice powder. The company developed a process that eliminated /3 of the water in the orange &uice, forming a frozen concentrate that when reconstitute created orange &uice. They branded it 'inute 'aid a name connoting the convenience and the ease of preparation. 'inute 'aid thus moved from a powdered concentrate to the first ever orange &uice from concentrate.

The launch of 'inute 'aid in India tend the leadership of Coca-Cola in India in the &uice drink category. (vailable in A PT pack sizes i.e. 233ml, 0 litre, 0.5; litres.



$%%>%+'aaza was introduced in late 04J3s. 'aaza has today come to symbolise the very spirit of mangoes. Bniversally loved for its taste, colour, thickness and wholesome properties, 'aaza is the mango lovers first choice.

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&IN,'+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. Minley water comes with the assurance of safety from the Coca-Cola Company. (vailable in PT ;33ml and 0333ml.

('!R(I% (!," C!//''+eorgia coffee was introduced in India in 5332. The eorgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. Today eorgia coffee is available at uick-!ervice *estaurants, (irports, Cinemas and in Corporates across all ma&or metros in India. *! 0''R%(')

spresso, (mericano, Cappuccino, Caffe "atte, 'ochaccino, @ot Chocolate, Cardamon Tea.



C!," 0''R%(')

Ice Teas, Cold Coffee. able < 1.@

$%R&'IN( $I; !/ C!C%-C!,% IN"I% PR!"#C+Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, %anta, !prite, Thums Bp, 'aaza, 'inute 'aid and eorgia old. :ottled water was another area where Coca-Cola identified ma&or opportunities. In 5335, Packaged drinking water in India was a *s 0,333 cr industry and growing by 23 every year. PE# was a low margin U high volume business, but it was an attractive proposition for bottlers as it increased plant utilization rates. In this market Cokes Minley was pitched against *amesh Chauhans :isleri and Pepsis (uafina. The product not only faced intense competition but also was difficult to differentiate. Coke positioned Minley as natural water with the tag line “0hoond 0hoond $ein ishwas”
In early 0444, the parent company acuired Cadbury !chweppes. (s a result 05 more bottlers were brought into CCIs fold. This acuisition added Crush, Canada Ery and !port Cola to CCIs product line. This meant CCI had three orange, clear lime and cola drinks each in its portfolio.

PRIC'+Coke learnt with e>perience that price was a strategic weapon in an emerging market like India. (n increase in value added ta> in 0441 had taken the price of the A33ml bottle beyond the reach of many Indian customers. In 5333, CCI conducted a yearlong e>periment in coastal (ndhra Pradesh by introducing a 533ml bottle at *s J. The volumes went up by A3 demonstrating the importance of consumer affordability. !o the 533ml pack priced at *s ; was rolled out countrywide in Fanuary 533A. The advertising Campaign highlighted the



affordability and Indian image. To make it affordable, Coke introduced Minley in 533ml pouches for *e. 0 in selected places in (hmadabad and 533ml water cups in 'aharashtra, priced at *s A per cup in testing marketing e>ercise conducted in mid U 5335. In 5335 Minley with A; market share had become the leader in the retail PE# segment and was contributing 53 of CCIs revenues.

P,%C'+Coke pushed down responsibilities from corporate headuarters to the local business units. The aim was to effectively align CCI?s corporate resources, support systems and culture to leverage the local capabilities. CCI?s operations had been divided into 6orth, Central and !outhern regions. ach region had a president at the top, with divisions comprising marketing, finance, human resources and bottling operations. The heads of the divisions reported to the C$. :ottling operations were divided into four companies directed by the bottling head from headuarters. Bnder the new plan, CCI shifted to a si> region profit center set up where product customization and packaging, marketing and brand building were taken up locally. ( *egional eneral 'anager <*'= headed each region with the regional functional heads reporting to him. (ll the *'s reported to DP <$perations, who in turn reported to C$. The four bottling operations, with AJ bottling plants, were merged into @industan Coca-Cola :everages <@CC:=. ach of the si> regions had on an average si> bottling plants. ach plant was headed by an (rea eneral 'anager <('= and held profit center responsibility for a business territory. @e reported to the *' as well as the head of bottling at the head uarters.

PR!$!I!N+In the initial years, CCI focused on establishing the Coca-Cola brand uickly. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums Bp. Indeed the marketing spend on Thums Bp between 044A and 0441 was almost negligible.



The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. Thumps Bp remained neglected. Inadeuate marketing support for other Parle brands also led to their declining market shares.

The bottlers taken over by Coke also had problems ad&usting to a new work culture. They argued that CCI?s lack of interest in promoting Thumps Bp was resulting in falling sales and asked CCI to take corrective action.

Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well known personalities popular to this age group. Euring 43?ies Coke?s promotion efforts did not seem to be effective. They were focused on mega events like the 0441 Cricket #orld Cup held in India. CCI?s #orld Cup Cricket campaign was overshadowed by Pepsi?s K6othing official about itK campaign. 'a&or analysts were surprised that Thumps Bp was totally out of the picture during such a mega event. In 044/ localization of marketing efforts, CCI signed up celebrities like (amir Mhan, (ishwarya *ai, and !unil avaskar to promote Coke. Coke also began efforts to re&uvenate the Parle brands, "imca and Thumps Bp. In 044/, India was declared the fastest growing market within the Coca-Cola system. :ut things were far from normal. (ttempts at building growth through discounts and PT take home segment were not very successful because of lack of coordination between the launches and marketing back-up.

To maintain good relationships with bottlers and avoid defections to the other camp, dealers had been pampered by offering e>pensive overseas trips. In 5333, Coke wrote off investments in India, amounting to O233 'n. The revised value of CCI?s assets after the charge was OA33 mn.

CCI spent OA.; mn to beef up advertising and distribution for Thumps Bp. :y 5335, it had become India?s 6o.5 cola drink after Pepsi. 'aaza, the mango drink, was repositioned as a &uice brand and saw a growth of almost A3 in 5330. !ince India was a large country of different tastes and cultures, CCI customized its marketing strategy for different regions. It



promoted the Coke brand in Eelhi, Thumps Bp in 'umbai and (ndhra Pradesh, and %anta in Tamil 6adu. Coke had plans to launch *imzim, a spicy soda drink in 6orth 'aharashtra.

P')', %N%,)I) !/ C!C%-C!,% IN"I% P!T" stands for Political, 'conomic, )ocial, echnological, ,egal and 'nvironmental. It is a tool that helps the organisations for making strategies and to know the RT*6(" environment in which the organisation is working and is going to work in the future.

Political /actors+ *istorical

Coca Cola India was the leading soft drink brand in India till 04JJ when it left rather than revealing its formula to the government. They re-entered the country in 044A. @owever, the primary barrier for Coca-Colas entry into the Indian market was its political environment. Eespite the liberalization of the Indian economy in 0440 and introduction of the 6ew Industrial Policy to eliminate barriers such as bureaucracy and regulation, there was still a lot of protectionism. Indias past promotion of 8Indigenous availability9 or 8!wadeshi movement9 depicted its affinity for local products. Eue to Indias suspicion of foreign business entering Indian markets, Coca Cola received alien status its re-entry. This and some of the policies imposed on foreign enterprises proved as a hindrance to the growth of the company in the country. To make things worse, the policies were neither clear nor unchanging. %or e>ample, foreign businesses were not allowed to market their products under the same name if selling within the Indian market. Thus, Coca Cola had to be changed to Coca Cola India


Recent )cenario Euring recent times, Coca Cola India has faced its fair share of problems. $n (ugust ;

th

533A, The Centre for !cience and nvironment
This had an adverse impact on the sales of Coca Cola, with a drop of almost A3-230 in only two weeks on the heels of a J; five-year growth tra&ectory. 'any leading clubs, retailers, restaurants, and college campuses across the country had stopped selling Coca-Cola. This threatened the newly achieved leadership attained over Pepsi due to a successful marketing campaign.

:ut this was not the end of Coca Colas troubles. There was widespread discontent around many of their plants. %or e>ample, in Plachimada, Merala, the communities in and around the Coca Cola plant blamed the factory for their water problems. Eue to this, the local Panchayat decided not to renew the license issued to Coca Cola to 8protect public interestK. The company has also been accused of illegally occupying a portion of the village property resources in 'ehdigan&, near Daranasi. @owever, there are certain positives as well, with a 55 percent increase in its unit case volume last uarter.

'conomic %nalysis+ The Indian economy sustained the global economic slowdown in the previous year and has shown a tremendous economic growth. It showed /.1 of growth in the last uarter of 533403 as compared to ;./ same time in the previous year. It has emerged as an attractive economy to invest in as many opportunities has been recognized.



'conomic 2rowth India is ranked second in economic growth, &ust behind China. (na lysts have said that India will be the third biggest economy of the world in the coming year behind China and B!(. #ith economic growth many opportunities have been seen, which have attracted many foreign investor to the company. Coca cola India returned to the country in 044A, despite few problems in the start they have emerged as the king of soft drink industry in India. The strong economic growt h of India has resulted in coca cola to invest heavily in sales and distributive channels. It has introduced two new products, 6imbu %resh and an energy drink :urn.

Coca cola registered 55 growth in their unit case volume in the second uarter <(pril-Fune=. It is the 01 th consecutive uarter of such growth out of which 0A are double digit. Coca cola Indias growth is in contrast to its overall performance, the beverage king reported a growth of &ust ;
Inflationary effects Inflation is one of the main problems that Indian economy has been facing for a year now. *ising prices in the food and other products doesnt only effect the consumers it also has an adverse effect on a company. The inflation rate for the year 5334 was recorded to be 00.24. (s prices have gone up in India for various products, especially oil, there has been uncertainty in decision making of almost every company. Coca cola India has also been affected by the same+ it has been forced to think about their input costs, as they have been rising due to inflation. Their e>penditure has been rising, with more costs in salaries, distribution channels and other operating costs. :everage industry being price competitive market, they have not revised their product prices.

'9chan2e rate The e>change rate of rupee to B! Eollar has been stable but in the previous months the rate



has had a tumultuous period. >change rate determines at what price will the company e>port its products and import whatever is reuired by it. The previous year, the rate of rupee to B!E touched 22, on an average it has been around 2J, so the e>ports earned less and the imports cost more. Therefore, coca cola India had to bear some low profitable times. @owever, in the present scenario rates have reached a stable level and e>ports are on an increasing trend.

)ocial %nalysis+ Coca- Cola returned to India in 044A after a 01 year hiatus, amidst competition from "eher Pepsi which had the advantage of entering the country J years earlier. Initially, it struggled to find acceptance as there were already other brands such as Parles Thums Bp which e>isted in the market. Coca-Cola had earlier focussed more on the (merican way of life in their advertising campaigns, which the Indian consumers could not identify with. (lso, they did not focus on competition from other alternatives such as lemonade, "assi etc.

These products had been around for centuries, and were also cheaper alternatives to CocaCola. @owever, things were brought under control when Thums Bp was bought over by Coca Cola, and more attention was paid by the company on their marketing mi>. #ith the lowering of their prices by almost 0;-53, introduction of newer products which appealed to the Indian tastes, more investm ent in market research and focussing on the target group of 0/-52 year olds, they were able to increase their market share and build brand loyalty.

Coca Cola today, has made significant investments to build its business in India. It has also generated employment for almost 0,5;,333 people in related industry through its procurement, supply and distribution cycles.

The soft drink industry today is growing steadily due to the booming economy, strengthened middle class and low per capita consumption. #ith the increase in health consciousness among the urban consumers, the company has introduced newer products such as

Eiet Coke,

which contain lesser calories than ordinary Coca Cola. This is also responsible for the



company shifting focus from carbonated drinks to %ruit Erinks Q Fuices and bottled water. The rural market had also been identified by Coca-Cola India as an attractive target, with almost J3 of the countrys population. The company has recorded significant growth in recent years

Coca Cola India has also taken many initiatives as a responsible corporate citizen, by tying up with many 6$s such as :(I%
echnolo2ical %nalysis+ Coca-Cola has started operations of its *)E facility in India, with the view of localizing its product portfolio. The ma&or focus would be on non carbonated drinks and flavours. The companys *)E team has already rolled out drinks such as 'aaza aam panna and also a 'aaza mango milk drink, and is e>ploring options to enter new categories in India such as &uices in localised flavours, energy drinks, sports drinks and flavoured water. These initiatives are being taken by the company to further e>pand their product portfolio. #ith the increasing importance of A13 degree media tools and overall ad spend on social media sets likely to grow by almost 22, Coca-Cola has increased ad spend on the internet. Case in point is the recent 5334 !prite campaign, which was first launched on the internet.

'n5ironmental %nalysis+ Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed in the footsteps. Coca Cola Indias Corporate !ocial *esponsibility


5. nvironmental impact assessment before commencing pro&ect A. round water and environment survey before selecting the site 2. :an on purchasing C%C emitting refrigerating euipment ;. #aste water treatment facilities 1. Compliance with all regula tory environmental reuirements J. nergy conservation programs :y following these guidelines Coca-Cola India has helped the environment with consistent profits and success. They seek to provide leadership in three different areas, these are as follows7 0. #ater efficiency and water uality 5. nergy efficiency A. liminating or minimizing solid waste. Though being an environmental friendly company, Coca Cola India had to face its share of controversies. $n 2th %ebruary, 533A, Centre of !cience and nvironment in India, released a report based on e>periment done by Pollution 'onitoring "aboratory. In the e>periment, they tested 0J packaged drinking water brands and found that, Coca Colas Minley has 0; times more pesticide residual levels than the stipulated norms, :isleri had ;4 times and (uaplus had 034 times. The main law governing the food safety is the 04;2 Prevention of food alteration act, which stated that pesticides should not be present in any food item but did not have law against pesticides being present in soft drinks. @owever, the %ood Processing $rder 04;; stated that the main ingredient used in soft drinks must be potable water but the :ureau of Indian !tandards had no prescribed standards for pesticides in water. :ut later it was found that :I! had stated that pesticides should not be present or it should not



e>ceed 3.330 part per million. %urther, the health ministry of India admitted that there were lapses in P%( regarding carbonated drinks.

/i2 . (R%P* !/ P')ICI"') IN )!/ "RIN&) IN IN"I%

,e2al %nalysis+ (s the Indian consumer is getting more educated, the government is also paying special attention to consumer laws. In the past, there were not so many laws protecting the benefits to the consumer but now every business has to go by the law and fi> their operations, strategies so as to satisfy their consumers, and employees. Meeping in mind the consumer laws, employment laws, antitrust law, discrimination laws etc. a business should plan out everything.

Consumer ,aws In the present scenario, consumer is the king, if a product is defective, not meeting the stated standards a consumer can complain against the manufacturer. Complaining and getting the



verdict the court has made very fast and efficient as government of India has installed new consumers courts. Their main &ob is to see that the consumer benefits are being met or not. #hen producing their beverages, Coca Cola India has to make sure that they have written price, manufacturing date, e>piry date, batch no, nutritional facts are written on the packed product. 

'mployment ,aws

'inistry of "abour makes the laws for proper employment in the country. They have stipulated norms on employing people from the country and getting e>patriates in the company as well. India has strict laws against employing child labour. :ein g a male dominated society, the ministry has made sure that female employees are treated with respect and given eual importance at the work place. very field of work has got its own wage, these are to meet the norms and laws set by the labour ministry. #hen employing anyone, coca cola India cannot discriminate on social, regional or any racists basis. If it is found that the company has been violating the law, it has to face strict action and fines.

*ealth and safety laws (s coca cola produces a product that is consumed by the consumer as a food item, there are laws that the company must abide by when producing it. 'inistry of %ood Processing Industries makes and oversees the laws and norms for the food processing industries. The Indian Parliament has recently passed the %ood !afety and !tandards (ct, 5331 that overrides all other food related laws. It will specifically repeal eight laws7 •

The Prevention of %ood (dulteration (ct, 04;2.

•

The %ruit Products $rder, 04;;.

•

The 'eat %ood Products $rder, 04JA.

•

The Degetable $il Products
•

The dible $ils Packaging <*egulation= $rder, 044/.


“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” •

The !olvent >tracted $il, Ee oiled 'eal, and dible %lour
•

The 'ilk and 'ilk Products $rder, 0445.

•

ssential Commodities (ct, 04;; relating to food.

%rom now on, the act establishes a regulatory body, the %ood !afety and !tandards (uthority of India. (nything that coca cola makes, have to make accordingly to the laws. They have to check the weight, volume and ingredients of the product. The e>port or the import of the products by the company has to meet the uality standards stipulated by the law.

%nti-trust law The Competition Commission of India was made under the Indian Competition (ct 5335, 'onopolies *estrictive and Trade Practices (ct 0414 was replaced by it. This committee looks after all the issues regarding unethical means of doing business, competiti on issues and any dispute between two different business entities. C" competition and anti trust practices are as follows7 •

*epresenting clients before the '*TP Commission in monopolistic and restrictive trade practices and unfair trade practices matters.

•

"egal (dvice and sophisticated insight into the international best practices on competition law.

•

Consultancy services on specific issues - supply and distribution, pricing and marketing, promotional materials, mergers, acuisitions, amalgamation, licensing,

•

• •

• •

&oint operation and research, &oint buying, dominant-firm status etc. Competition (udit and Eue Eiligence for developing appropriate guidelines for employees, distributors, agents, franchisees etc. "egal Eue Eiligence on anti-competition, unfair and restrictive market practices. Erafting claims, counter-claims, replies, re&oinders, representations etc. on Competition "aw and related legal issues. !trategic policing on anti-competition market practices and trends. Policy due diligence for mergers, acuisitions, &oint ventures with appropriate anti-



trust safeguard measures and policy. (ll these laws help Coca Cola India to maintain its own brand and values. (ny other business trying to copy the brand of coca cola will face the strict action against itself. The se laws help every business to compete in a fair environment. (s it is known that the coca cola and Pepsi are the fiercest rivals in the beverage industry, the CCI makes sure that either of them does not indulge in unfair means to make profits and hurt each others business.

)6! %N%,)I) !/ C!C%-C!,% IN"I%

WEA1NESSES

STRENGT"ES

"eal,/ Ca#e Isses.

D&s,#&),&o' Ne,wo#4. S,#o'( B#a'$ Ima(e. Low Cos, o* O+e#a,&o'.

Small Scale Sec,o# Rese#a,&o's.

OPPORTUNITIES La#(e Domes,&c Ma#4e,s. E5+o#, Po,e',&al. "&(/ I'come amo'( Peo+le.

SWOT ANALYSIS

T"REATS

Im+o#,s. Ta5 6 Re(la,o#2 Sec,o#. Slow$ow' &' R#al Dema'$.

/i2 .4 )6! %N%,)I) !/ C!C%-C!,% IN"I%

)R'N(*')+ "I)RI0#I!N N'6!R& The Company has a strong and reliable distribution network. The network is formed on the



basis of the time of consumption and the amount of sale yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, J33,333 retail outlets and /333 distributors. The distribution fleet includes different modes of distribution, from 03 tonne to open bay three wheelers that can navigate the narrow alleyways of Indian cities U constantly keep Coca-C ola brands available in every nook and corner of the Countrys remotest areas.

)R!N( 0R%N" I$%(' Coke has its history of about more than a century and this prolonged sustenance has definitely added to the brand image in the minds of the consumers and to its wallet. The products produced and marketed by Coca-Cola India have a strong brand image. !trong brand names like Coca-Cola, %anta, Thums up, "imca and 'aaza add up to the brand name of Coca-Cola Company as a whole. Coca Cola India for the first time has come out

with corporate campaign in India targeting its stakeholders. The multimedia campaign “ "ittle Erops of Foy K is aimed at raising the corporate brand image of the company which took a heavy beating with a number of controversies it faced in different domains. The new campaign is a part of a complete restructuring e>ercise in the Indian arm of this global change. Coca Cola recently announced its new corporate strategy called the 8; PillarK strategy. The company has identified the ; pillars as • • •

People. Planet.

•

Portfolio. Partners. Performance.



,!6 C!) !/ !P'R%I!N)

•

In light of the companys (ffordability !trategy, Coca-Cola went about bringing a cost-focus culture in the company. This included procurement fficiencies U through focus on key input materials, trade discipline and control and proactive ta> management through ta> incentives,



e>cise duty reduction and creating marketing companies. These measures have reduced the costs of operations and increased profit margins.

6'%&N'))')+

*'%,* C%R' I))#') In India, there e>ists a ma&or controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 533A, the Centre for !cience and nvironment ins including lindane, EET, malathion and chlorpyrifos - pesticides that can contribute to cancer and a breakdown of the immune system.

)$%,, )C%,' ) 'C!R R')'R%I!N) The Companys operations are carried out on a small scale and due to overnment restrictions and red-tapism, the Company finds it very difficult to invest in technological advancements and achieve economies of scale.

!PP!R#NII')+ ,%R(' "!$')IC $%R&') The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a ;/ per cent share of the soft drinks market+ this includes a 25 per cent share of the cola market.

$ther products account for 01 per cent market share, chiefly led by "imca. The company appointed ;3,333 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered A,;33 new villages. In :angalore, Coca-Cola amounts for J2 of the beverage market.





';P!R P!'NI%,

The Company can come up with new products which are not manufactured abroad, like 'aaza etc and e>port them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of e>ports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than &ust domestic market.



*I(*'R INC!$' %$!N( P'!P,'

Eevelopment of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Bnlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. Coca-Cola Company can take advantage of such a situation and enhance their sales.

*R'%)+

I$P!R) (s India is developing at a fast pace, the per capita income has increased over the years and a ma&ority of the people are educated, the e>port levels have gone high. People understand trade to a large e>tent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.

%; A R'(#,%!R )'C!R The ta> system in India is accompanied by a variety of regulations at each stage on the



conseuence from production to consumption. #hen a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. *enewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.



),!6"!6N IN R#R%, "'$%N"

The rural market may be alluring but it is not without its problems7 "ow per capita disposable incomes that is half the urban disposable income+ large number of daily wage earners, acute dependence on the vagaries of the monsoon+ seasonal consumption linked to harvests and festivals and special occasions+ poor roads+ power problems+ and inaccessibility to conventional advertising media. (ll these problems might lead to a slowdown in the demand for the companys products.



=. R')'%RC* $'*!"!,!(



!08'CI') !/ *' )#"



The main ob&ective of the pro&ect is to analyze and study in efficient way the current position of Coca- Cola Company.



To perform P!T" and !#$T analysis of Coca-cola globally as well as locally. This would help us identify areas of potential growth. The study was aimed to perform 'arket (nalysis of Coca-Cola Company ) find out different factors effecting the growth of Coca-Cola. (nother ob&ective of the study was to perform Competitive analysis between CocaCola and its competitors. To understand the reasons behind the purchase of Coca-Cola products.

)C!P' !/ *' )#"+This study basically tries to discover the current position of Coca-cola in the market. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in 6ew Eelhi, 6oida and reater 6oida

R')'%RC* "')I(N ( research design is the specification of methods and procedures for acuiring the needed information . It is overall operational pattern or framework of the pro&ect that stipulates what information is to be collected from which source by what procedure. There are three types of ob&ectives in a marketing research pro&ect7• • •

'9ploratory Research. "escripti5e Research. Casual Research.

1. '9ploratory Research+-



The ob&ective of e>ploratory research is to gather preliminary information that will help define problems and suggest hypothesis.

. "escripti5e Research+The ob&ective 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.

4. Casual Research+The ob&ective of casual research is to test hypothesis about casual and effect relationships.

:ased on the above definitions it can be established that this study is a Eescriptive *esearch as the attitudes of the customers who buy the products have been stated. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products.

)!#RC') !/ "%% The data has been collected from both primary as well as secondary sources.

)'C!N"%R "%%+It is defined as the data collected earlier for a purpose other than one currently being pursued. (s 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. !econdary data in this study has provided an insight and forms an outline for the core ob&ectives established.

The various sources of secondary data used for this study are7-


“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”     

6ews papers. 'agazines. Te>t books. 'arketing reports of the company. Internet.

PRI$%R "%%+The primary data has been collected simultaneously along with secondary data for meeting the established ob&ectives to provide the solution for the problem identified in this study. The methods that have been used to collect the primary data are7 

uestionnaire. Personal Interview.

R')'%RC* $'%)#RIN( !!,) A 'C*NI7#') The primary tool for the data collection used in this study is the respondents response to the uestionnaire given to them. The various research measuring tools used are7      

uestionnaire. Personal interview. Tables. Percentages. Pie-charts. :ar-charts. Column charts.

)%$P,IN( "')I(N



(n integral component of a research design is the sampling plan. specially it addresses three uestions7 #hom to survey
)%$P,' )I>'+i. ii.

Through uestionnaire U 0;3 respondents. Through personal interview U 5J respondents.

)%$P,IN( !!,+uestionnaire was used as a main tool for the collection of data, mainly because it gives the chance for timely feedback from respondents. 'oreove r respondents feel free to disclose all necessary detail while filling up a uestionnaire. *espondents seeking any clarification can easily be sorted out through tool.

)amplin2ools

Respondents

uestionnaire

Customers

PersonalInterview

Number

0;3

Customers

5J

otal

1BB

able < 1.B

/I'," 6!R&+The study was conducted in 6ew Eelhi, 6oida and reater 6oida.  

The uestionnaires were given to the respondents to fill in order to get their feedback. uestions were read out to the respondents and the answers were noted.



,I$I%I!N) !/ *' )#"+The main purpose of this study is get idea about the preference of the customers towards various Coca-Col a products. :ut there are certain factors which affect s this study they are as follow7 

!ince the sampling procedure was &udgmental, the sample selected may not be true representative of the population.



conomic and market conditions are very unpredictable


The pro&ect duration is limited to 2 weeks so it limits the area of study.



The study was confined to 6ew Eelhi, 6oida and reater 6oida due to which the result cannot be applied universally.



?. "%% %N%,)I)



Res+o'$e',s )ase$ o' a(e (#o+ 10 160 140 120 100 0 60 Nm)e# o* #es+o'$e',s 40 20 0

/i2 .=

Res+o'$e',s )ase$ o' (e'$e# 37,

Ma-! '!a-! 63,

/i2 .?

%(' (R!#P A ('N"'R+ %rom %ig 5.2, we can comprehend that 43 of total respondents belong to the age group of 53-A3. This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group. (bout 1 belong to age group below 53 and A belong to age group of A3-23.%orm %ig 5.;, we come to know that the gender ratio of the total respondents is almost 570


7#e3e'c2 o* so*, $#&'4 co'sm+,&o' 50 45 40 35 30 25 20 15 10 5 0

/i2 .@

Wee4l2 e5+e'$&,#e o* coca-cola +#o$c,s 8INR9 12,

50%100

4,3,

100%150 150%200 )1,

A/! 200

/i2 .B

)!/ "RIN& C!N)#$PI!N A ';P'N"I#R'+ %rom %ig 5.1, we interpret that about 2/ of the total respondents consume soft drinks rarely or once a week. (bout A; respondents consume soft drinks twice or thrice a week and only 0/ consumes soft drinks every day.



%rom %ig 5.J, we interpret that about /0 of the respondents spend only *s. ;3-033 a week on Coca-Cola products, which is very low as compared to the global scenario. This creates a potential growth market for Coca-Cola India. (bout 05 spends from 033-0;3 a week ) J spend above 0;3.

P#c/as&'( Po#,al P#e*e#e'ce 120 100 0 60

40 20 0

/i2 .

P#RC*%)IN( P!R%, PR'/'R'NC'+ %rom the above data, we have ascertained that preferred portal for purchase of Coca-Cola products is the retail shops i.e. ;/. This is probably because not all communities in India have supermarkets and other purchasing channels present nearby, whereas, we can find retail shops in every corner.04 prefer to purchase from !upermarkets and Dendor machines. 5A prefer to purchase from Pubs, *estaurants and 'ultiple>es.



Occas&o'sReaso's *o# co'sm+,&o' J8 -! :a

Pa!

#!a

P

'!a- 0

20

40

60

0

100

120

Nm)e# o* #es+o'$e',s

/i2 .D

R'%)!N /!R C!N)#$PI!N+ %rom this graph, we infer that there is no specific occasion why people purchase Coca-Cola products. (lthough some of the advertising campaigns target special occasion or festivals. %rom %ig 5.4 it is concluded that ;4 respondents purchase Coca-Cola without any specific reason. (bout 5A purchase for the purpose of parties, 0; purchase while watching movies in the cinemas and only about 2 purchase during festivals and for picnic purposes.



So*, $#&'4 +#e*e#e'ce 0 70 60 50 40 30 Nm)e# o* #es+o'ses

20 10 0

/i2 .13

)!/ "RIN& PR'/'R'NC'+ %rom the above graph we interpret that about J3 of the respondents, prefer consuming Coca-Cola product over Pepsi and other drinks. This clearly states why Coca-Cola is market leader with almost 13 of market share. 5A prefer Pepsi Products and only J; prefer other drinks.



O+'&o' A)o, Coca-Cola P#o$c,s a< !-? Sa=a> Sa=a> G< E;!--! 0

20

40

60

0

100

120

NO. O7 RESPONDENTS

/i2 .11

P#o$c,s e5+ec,e$ )2 co'sme#s *#om Coca-Cola '@@> <69

'83 <69

20,

E6!> <69

A-5:-5 <69

14,

27,

40,

/i2 .1

!PINI!N %0!# C!C%-C!,% PR!"#C) A PR!"#C) ';P'C'" 0 C!N)#$'R)+ %rom %ig 5.00, we infer that though the respondents are more than satisfied by the Coca-Cola product range they would still like the company to introduce new drinks. %rom %ig 5.05, we conclude that about 23 would like to see a new fruit drink being added to the product basket, 51 want energy drinks, 53 alcoholic drinks and only 02 want another fizzy



drink. 'a&ority of the people wanting to see a fruit drink is mainly because people are more health conscious now and want to manage their calorie intake.

;a',&,2 +#e*e#e'ce 90 0 70 60 50 40 30 Nm)e# o* #es+o'ses

20 10 0

/i2 .14

7#%NI PR'/'R'NC'+ %rom %ig 5.0A, we infer that about 2J of respondents prefer to purchase PT bottle of Coca-Cola Products. (bout 5J prefer to purchase glass bottles, 04 prefer Can of A33ml and only / prefer 0 ) 5 litre bottles of Coca-Cola.



B#a'$&'( P! <8

#a%#-a <8

0

20

40

60

0

100

120

NO. O7 RESPONDENTS

/i2 .1=

P#&c&'( 120 100 0 60 40 20 0

#a%#-a <8

P! <8

/i2 .1?

0R%N"IN( A PRICIN(+ %rom %ig 5.02, it is concluded that respondents find Coca-Cola products better than that of Pepsi products. (bout 15 respondents said that they find Coca-cola products better than Pepsi and only A/ supported Pepsi products.

www.GamesWala.com Pa! 0


%rom %ig 5.0;, we infer that about 15 of the respondent considers the pricing of Coca-Cola much more reliable than that of Pepsi. (bout A/ respondents think that Pepsi have better pricing than that of Coca-Cola.

;al&,2 140 120 100 0 60 40 20 0

#a%#-a <8

P! <8

/i2 .1@

TASTE

P! <8

#a%#-a <8

0

20

40

60

0

100

120

140

NO. O7 RESPONDENTS

/i2 .1B

7#%,I A %)'+



%rom %ig 5.01 ) 5.0J, its clear that Coca-Cola products have better taste and uality than that of Pepsi. (bout JA respondents consider that Coca-Cola products have very good uality and taste. 5J respondents consider Pepsi products have better taste and uality.

Aa&la)&l&,2 P! <8

#a%#-a <8

5.5 6 6.5 7 7.5  .5 9 9.5 90 Nm)e# o* #es+o'$e',s

/i2 .1

Sa,&s*ac,&o'

P! <8

#a%#-a <8

0

20

40

60

0

100

120

140

/i2 .1D



%%I,%0I,I A )%I)/%CI!N+ %rom %ig 5.0/, its clear that there is slight difference between the availability of products of Coca-Cola and Pepsi. (bout ;0 respondents think that Coca-Cola products are much easily available in the market.24 consider that availability of Pepsi products is more in the market. (bout J3 of respondents are satisfied with the Coca-Cola products while as A3 respondents are satisfied with the Pepsi products as shown in %ig 5.04.

@. )#((')I!N) %N" C!NC,#)I!N



)#((')I!N) The suggestions made in this section are based on the market study conducted as part of 8Coca-Cola India9. The suggestions are arranged in order of priority, highest first. 

Perform a detail demand survey at regular interval to know about the uniue needs and reuirements of the customer.



The company should make hindrance free arrangement for its customersQretailers to make any feedback or suggestions as and when they feel.



The company should focus to bring some more flavors like health drinks and other low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as it has already entered the energy drink arena with 8:urn9.



Coca-Colas distribution channel is mostly through retail. #hereas the competitors also concentrates more on the multiple>es, 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.



The company should be always in a position to receive continuous feedback and suggestions from its customersQ consumers as well as from the market and try to solve it without any delay to establish its own good credibility.



( strong watch should be kept on distributors so that the goodwill of the :*(6E doesnt get affected.

C!NC,#)I!N



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 %)', 0R%N" N%$', INN!%I'N'))and %%I,%0I,I, thus it should focus on good taste so that it can capture the ma&or 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.



0I0,I!(R%P* 0!!&)+



'arketing 'anagement U Motler Philip. *esearch 'ethodology U Mothari.

6'0)I')+ www.thecoca-colacompany.com www.news.bbc.co.uE www.india-ser5er.com www.ma2india.com www.coca-colaindia.com www.wiEiin5est.com www.open.net !*'R) (nnual report of Coca-Cola 533/. (nnual report of Coca-Cola 5334.

%NN';#R'



7#')I!NN%IR'  

6('7 .............................................................................. 6E*7 a= 'ale b= %emale



Eo you drink !oft drinksV a= Les b= 6o



@ow often do you have soft drinks per weekV a= $nce a week b= Twice a week c= Thrice a week d= veryday e= *arely



#hat drink comes to your mind when you think of soft drinksV a= Coca-Cola b= Pepsi c= $ther products of Coca-Cola d= $ther products of Pepsi e= $ther drinks



#hat uantity do you usually prefer to buyV a= 533-5;3 ml lass bottle b= A33 ml Can c= ;33 ml Pet bottle d= 0 litre e= 5 litre



#hat do you feel about Coca-Cola product rangeV a= >cellent b= ood c= !atisfactory d= :elow !atisfactory e= :ad



#hat occasions do you prefer to buy Coca-Cola productsV a= %estivals b= Picnics c= Parties d= Cinemas


“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” e= Fust like that 

#hat is your most preferred channel for purchasing Coca-Cola productsV a= !uper markets b= *etails c= Dendor 'achines d= Pubs ) *estaurants e= 'ultiple>es



@ow much do you spend on Coca-Cola products per weekV a= ;3-033 b= 033-0;3 c= 0;3-533 d= (bove 533



Put
Coca-ColaProducts

Pe psi Products

2= Taste ;= (vailability 1= !atisfaction



#hat kind of products do you want Coca-Cola to introduce in the futureV a= %izzy Erinks b= %ruit Erinks c= nergy Erinks d= (lcoholic Erinks

............................................................................................................... Thank youW

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Final Report on Coca Cola

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