research work-coca cola
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Research work
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The Coca-Cola Company is an American multinational beverage
corporation of manufacturer, retailer and marketer of non-alcoholic
beverage concentrates and syrups.
The company is best known for its flagship product Coca-Cola, invented
in 1886 by pharmacist John Stith Pemberton in Columbus, The Coca-Cola formula and brand was bought in 1889 by Asa Candler
who incorporated The Coca-Cola Company in 1892
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The Coca-Cola Company owns its anchor bottler in North America,
The Coca-Cola Company is headquartered in Atlanta,
The soft drink was first sold to the public at the soda fountain in Jacob's
Pharmacy in Atlanta on May 8, 1886.
Until 1905, the soft drink, marketed as a tonic
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In 1887, another Atlanta pharmacist and businessman, Asa Candler
bought the formula for Coca Cola from inventor John Pemberton for
$2,300.
In 1890s, Coca Cola was one of America's most popular fountain drinks,
largely due to Candler's aggressive marketing of the product. The sales reach peak level in between 1890 and 1900.
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Logo
Coca-Cola Bottling Plant, New York
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Introduction
Coca-Cola is a carbonated soft drink which sold in stores, restaurants,
and vending machines in more than 200 countries & it offers 500 brands
It is produced by The Coca-Cola Company of Atlanta, Georgia, and is oftenreferred to simply as Coke
Originally intended as a patent medicine when it was invented in the late
19th century by John Pemberton
Coca-Cola was bought out by businessman Asa Griggs Candler whose
marketing tactics led Coke to its dominance of the world soft-drink market
throughout the 20th century.
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History
The prototype Coca-Cola recipe was formulated at the Eagle Drug and
Chemical Company,
a drugstore in Columbus, Georgia by John Pemberton, originally as a coca
wine . In 1886, when Atlanta and Fulton County passed prohibition legislation,
Pemberton responded by developing Coca-Cola, essentially a non-alcoholic
version of French Wine Coca. Pemberton's French Wine Coca .
The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8,
1886.
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It was initially sold as a patent medicine at soda fountains, in the
United States
John Pemberton declared that the name "Coca-Cola" belonged to
Charley In 1892 Candler incorporated a second company,
The Coca-Cola Company (the current corporation),
and in 1910 Candler had the earliest records of the company burned,
further obscuring its legal origins.
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By the time of its 50th anniversary, the drink had reached the status of a
national icon in the USA.
In 1935, it was certified kosher by Rabbi Tobias Geffen, after the
company made minor changes in the sourcing of some ingredients. Coca-Cola was sold in bottles for the first time on March 12, 1894.
Cans of Coke first appeared in 1955
The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891.
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Advertisement
Coca-Cola's first such advertisement appeared in 1895.
Robinson also played a significant role in early Coca-Cola advertising.
His promotional suggestions to Pemberton included giving away thousands
of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs.
The first outdoor wall advertisement was painted in the same year as well
in Cartersville, Georgia.
On April 23, 1985, Coca-Cola, amid much publicity
Coca-Cola's advertising has significantly affected American culture, and itis frequently credited with inventing the modern image of Santa Claus as an
old man in a red-and-white suit.
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the red-and-white Santa image in the 1930s, with its winter advertising
campaigns
1941 saw the first use of the nickname "Coke" as an official trademark for
the product, with a series of advertisements informing consumers that
"Coke means Coca-Cola³ Coca-Cola television commercials between 1960 through 1986 were
written and produced by former Atlanta radio veteran Don Naylor .
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television commercials for Coca-Cola featured movie stars, sports
heroes and popular singers.
1980s, Pepsi-Cola ran a series of television advertisements showing
people participating in taste tests demonstrating that, according to the
commercials, "fifty percent of the participants who said they preferredCoke actually chose the Pepsi." Statisticians were quick to point out the
problematic nature of a 50/50 result:
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Holiday campaigns
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Sports sponsorship
Coca-Cola was the first commercial sponsor of the Olympic games, at the
1928 games
his corporate sponsorship included the 1996 Summer Olympics hosted in
Atlanta
Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other competitions organized by FIFA
Coca-Cola has a long history of sports marketing relationships
included Major League Baseball, the National Football League, National
Basketball Association and the National Hockey League,
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Coca-Cola was one of the official sponsors of the 1996 Cricket World
Cup held on the Indian subcontinent.
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Market research
The company's marketing department again went out into the field, this
time armed with samples of the possible new drink for taste tests, surveys,
and focus groups.
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The Beverage Industry in India
In India, beverages form an important part of the lives of people.
It is an industry, in which the players constantly innovate, in order to come up
with better products to gain more consumers and satisfy the existing
consumers.
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Mission
It declare the purpose as a company and serve as the standard against which
weigh the action and decision
To fresh the world
To inspire moment of optimism and happiness
To create vale and make difference
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Vision
to provide the people that work in the group, be it the owners or managers a
great place.
to work where people are inspired to be the best they can be and work with
quality brands .
Partners to maximize profit and productivity.
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MANAGEMENT
Mr. Nirmal Singh Kandhari, Group Chairman has been a pioneer figure in
Indian soft drink industry.
Kandhari Group as a soft drink manufacturing giant with a number of
bottling units in Northern India
Mr. Jaspal Singh Kandhari, Managing Director, has been steering theGroup to new heights by redefining business strategy of the family
business.
Mr.Jaspal Kandhari is Mr. Nirmal Singh Kandhari¶s younger
brother.Mr.Varinder Pal Singh Kandhari, Executive Director looks after the
day to day operations of the group. He is the son of Mr. Nirmal Singh.
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K ANDHAR I BEVER AGES PVT. LTD
Coca-Cola was the leading soft drink brand in India until 1977, when it left
rather than reveal its formula to the Government and reduce its equity stake
as required under the Foreign Regulation Act (FERA) which governed the
operations of foreign companies in India.
Coca-Cola re-entered the Indian market on 26th October 1993 after a gap
of 16 years, with its launch in Agra.
An agreement with the Parle Group gave the Company instant ownership
of the top soft drink brands of the nation , With access to 53 of Parle¶s
plants and a well set bottling network, an excellent base for rapid
introduction of the Company¶s International brands was formed.
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The Coca-Cola Company acquired soft drink brands like Thumps Up,
Goldspot, Limca, Maaza, which were floated by Parle,
as these products had achieved a strong consumer base and formed a
strong brand image in Indian market during the re-entry of Coca-Cola in
1993. Thus these products became a part of range of products of the Coca-
Cola Company.
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KANDHAR I GR OUP was established in 1967 by Late Mr. Teja Singh
Kandhari, is presently a progressive business house in India.
The group¶s first venture was a bottling unit as a franchisee of PARLE¶s
soft drink manufacturing ³ Gold Spot ´ under license from PARLEestablished at Amritsar in the north Indian state of Punjab.
Kandhari Beverages Ltd is among Coca-Cola India's top 4 franchisee
bottlers.
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In 1993, the world renowned soft drink giant - Coca-Cola entered India and
bought over PARLE brand of soft drink products, being one of the star
bottlers of PARLE the Group switched to manufacturing, bottling &
marketing of Coke brand of soft drink products.
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Organizational structure
Coca-Cola is made up of 7000 local employees
500 managers, over 60 manufacturing locations
27 Company Owned Bottling O perations (COBO)
17 Franchisee Owned Bottling O perations (FOBO)
a network of 29 Contract Packers that facilitate the manufacture process
of a range of products for the company.
It also has a supporting distribution network consisting of 700,000 retail
outlets
8000 distributors, Almost all goods and services required to cater tothe Indian market are made locally, with help of technology and skills
within the Company.
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The Company has two mega Greenfield bottling plants for filling soft drinks
located at Village Nabipur, District Fatehagarh Sahib (Punjab) and
Village K atha, Baddi, District Solan (HP).
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Manufacturing Process
Processing Production
Soft drink bottling or manufacturing involves five major processes, each
with its own safety issues that must be evaluated and controlled
1. Treating water.
2. Compounding ingredients
3. Carbonating product
4. Filling product
5. Packaging
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Distribution System
The system adopted by the Chandigarh Bottling Company (CBC) to
distribute its products in the city is, direct on-spot delivery on on-spot
demand by the retail outlet.
The salesman hired by the company is accompanied by an assistant and a
Market Developer (MD).
Direct distribution: In direct distribution, the bottling unit or the bottler
partner has direct control over the activities of sales, delivery, and
merchandising and local account management at the store level.
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Indirect distribution: In indirect distribution, an organization which is not
part of the Coca-Cola system has control on one or more of the distribution
elements (Sales, delivery, merchandising and local account management)
Merchandising: Merchandising means communication with the consumer
at the point of purchase to convey product benefit, value and Quality. Sales people and delivery personnel both have this responsibility.
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Departments involved in the Distribution process
The Distribution process mainly consists of three departments
Distribution Department: It appoints distributors and establishes a
distribution network, processes approved sale orders and prepares invoices,
arranges logistics and ship products, co-ordinates with distributors for
collections and monitors distribution stocks and their set-up.
Finance Department: It checks credit limits and approves sales orders in
compliance with the credit policy followed by the firm, records collections
from distributors, periodically reconciles outstanding balances from
distributors, obtains balance confirmation from distributors and follows up
outstanding balances. Shipping or Warehousing Department:
It dispatches goods as per approved by order, ensures that stocks are
dispatched on a FIFO basis, ensures physical control over load out area and
updates warehouse stock records in a timely manner.
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SWOT Analysis of KBL
Strengths
DISTR IBUTION NETWOR K : 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 sales yielded by a particular customer inone transaction. It has a distribution network consisting of a number of
efficient salesmen, 26,000 retail outlets.
The distribution fleet includes different modes of distribution, from
contracted transportation for goods carrying task of 10-tonne trucks toopen-bay three wheelers that can navigate through narrow alleyways of
Indian cities and trademarked three-wheelers.
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STR ONG BR ANDS
The products produced and marketed by the Company have a strong
brand image. People all around the world recognize the brands marketed
by the Company. Strong brand names like
Sprite, Fanta, Limca, Thums Up , kinley , minute maid , appy , Maazaadd up to the brand name of the Coca-Cola Company as a whole. The red
and white Coca-Cola is one of the very few things that are recognized by
people all over the world. Coca-Cola has been named the world's top
brand for a fourth consecutive year in a survey by consultancy Inter
brand. It was estimated that the Coca-Cola brand was worth
$70.45billion.
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LOW COST OF OPER ATIONS: The production, marketing and
distribution systems are very efficient due to forward planning and
maintenance of consistency of operations which minimizes wastage of
both time and resources leads to lowering of costs
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Weaknesses
LOW EXPOR T LEVELS: The brands produced by the company are brands produced worldwide thereby making the export levels very low. Over thateven domestic demands are sometimes go unfulfilled.
In India, there exists a major controversy concerning pesticides and other
harmful chemicals in bottled products including Coca-Cola.
In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced bysoft drinks manufacturers in India, including multinational giants PepsiCoand Coca-Cola, contained toxins including (lindane, DDT, malathion and
chlorpyrifos) - pesticides that can contribute to cancer and a breakdown of the immune system.
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MPOR T FR OM OTHER MANUFACTUR ER S: Import of few particular
packaging¶s from other manufacturers ads a cost to the business, like
importing of cans from Pune and water from Delhi etc.
But this problem will be soon removed with the establishment of new bottling line in Saha.
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Opportunities
LAR GE DOMESTIC MAR K ETS: 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 58 per cent share of the softdrinks market;
includes a 42 per cent share of the cola market. Other products accountfor 16 per cent market share, chiefly led by Limca.
HIGHER INCOME AMONG PEOPLE: an increase in the per capitaincome thereby causing an increase in disposable income. Unlike olden
times, people now have the power of buying goods of their choicewithout having to worry much about the flow of their income.
The beverage industry can take advantage of such a situation and enhancetheir sales.
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Threats
IMPOR TS : As India is developing at a fast pace, the per capita income has
increased over the years and a majority of the people are educated, the export
levels have gone high.
People understand trade to a large extent 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.
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LOWDOWN IN RUR AL DEMAND: The rural market may be alluring but itis not without its problems:
Low 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.
All these problems might lead to a slowdown in the demand for
the company¶s products.
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Products and Packaging
Though the Coca-Cola Company owns the innovation of 3,300 drinks
including beverages, tea and coffee, fresh juices, packaged water andenergy drinks but, all of them are not dominant at every place, may be due
to cultural, geographic, demographic, production and demand limitations.
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Coca-Cola returned to India in 1992 and over the past fourteen years has
enthralled consumers in India by connecting with passions of India- cricket,
movies, music and food. Coca-Cola has been very strongly associated with
cricket, sponsoring the world cup in 1996 and various other tournaments,including the Coca-Cola Cup in Sharjah in the late 90¶s.
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Coca-Cola¶s advertising campaigns
Jo Chaho Ho Jaye and Life Ho To Aisi were very popular and had
entered the youth¶s vocabulary in 90¶s.
In 2002, Coca-Cola launched its iconic campaign ³Thanda Matlab Coca-
Cola´ which sky-rocketed the brand to make it India¶s favourite soft-drink brand.
In 2003, Coke was made available for just Rs.5 across the country and this
pricing initiative together with enhanced distribution ensured that all brands
in the portfolio grew exponentially
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Coca-Cola had signed on various celebrities including movie stars such
as Karishma Kapoor, Cricketer such as Srinath, Sourav Ganguly,
southern celebrities like Vijay in the past and today, its brand
ambassador is Amir Khan.
Thums Up is a leading sparkling soft drink and most trusted brand inIndia. Originally introduced in 1977, Thums Up was acquired by The
Coca-Cola Company in 1993.
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Today Sprite is perceived as a youth icon. Why? With a strong appeal to
the youth, Sprite has stood for straight forward and honest attitude. Its
clear crisp refreshing taste encourages the today¶s youth to trust their
instincts, influence them to be true to who they are and to obey their
thirst.
Internationally, Fanta the µorange¶ drink of The Coca-Cola Company, is
seen as one of the favourite drinks since 1940¶s.
Fanta entered Indian market in the year 1993.
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Lime µn¶ Lemoni Limca can cast a tangy refreshing spell on anyone,
anywhere. Derived from µNimbu¶ +¶Jaisa¶ hence LimeSa, Limca has lived
up to its promise of refreshment and has been the original thirst choice of
millions of consumers for 3 decades.
Born in 1971, Limca has remained unchallenged as the No.1 SparklingDrink in the Cloudy lemon Segment
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The success formula is the sharp fizz and lemoni bite combined with the
single minded proposition of the brand as the provider of ³Freshness´.
Limca¶s Freshness is like no other- µlime n lemoni¶ Limca refreshness,
reenergizes, rejunevates not just your body but also your emotions.The new
Limca campaign takes the first step towards taking the earlier ³water-like
freshness´ idea to sn emotional platform relevant for the young-adult, who
pursue success and achievement, but still want freshness to rejuvenate the
fun, energy, excitement and romance in their lives.
³Freshness of Emotions´ idea stemmed from the insight about our
consumer- the desire to rejuvenate her/his emotions which are constantly
being dulled in routine pursuit of success
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Minute Maid- A 62 year success story. The history of the Minute Maid
brand goes as far as back as 1945 when the Florida Foods Corporation
developed orange juice powder. The company developed a process that
eliminates 80% of the water in orange juice, forming a frozen
concentrate that when reconstituted created orange juice.
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Mango. It is a fruit associated with good times like no other. Aptly called
the king of fruits, mangoes are to mango lovers what romance is to a
Casanova. Now imagine this delicious fruit, bottled. This is what Maaza
all about. Introduced in the late 1970¶s, Maaza has today come o
symbolize the very spirit of mangoes. Universally loved for its taste,
colour,thickness and wholesome properties, Maaza is the mango lover¶s
first choice
Maaza¶s universal appeal was responsible for the brand being recognized
as a drink that provides µwholesome family fun¶. Even today people hum
the memorable lines-µtaaza mango, maaza mango¶ and µbotal main
aam maaza hai naam¶.
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maaza has come a long way to stand as the ideal way to satisfy one¶s
craving for mangoes. Aptly framed, the line ³Maaza lao, aam ki pyaas
bujhao´ symbolizes the very essence of mangoes that has been captured
in a bottle. It provides consumers the most authentic experience of rich,
juicy mangoes to satisfy their thirst for mangoes- anytime, anywhere
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Water, a thirst quencher that refreshes, a life giving force that washes
away all the toxins away. A ritual purifier that cleanses, purifies,
transforms. Water, the most basic need of life, the very substance of
life, a celebration of life itself. The importance of water can never be
understood. Particularly in a nation such as India where water governs
the lives of millions, be it as a part of everyday rituals or as the
monsoon which gives life to the sub-continent.
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Kinley water understands the importance and value of this life giving
force. Kinley water thus promises water that is as pure as it is meant to be.
Water you can trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the Coca-Cola
company.
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Competitors to K BL
The competitors to the products of the company mainly lie in the non-
alcoholic beverage industry consisting of juices and soft drinks. The key
competitors in the industry are as follows
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The PepsiCo challenge, to keep up with archrival, the Coca-Cola Company
never ends for the World's, carbonated soft-drink maker.
The company's soft drinks include Pepsi, Mountain Dew, and Slice. Cola is
not the company's only beverage; PepsiCo sells Tropicana orange juice
brands, Gatorade sports drink, and Aquafina water. PepsiCo also sells Dole juices and Lipton ready-to-drink tea.
PepsiCo and Coca-Cola hold together, a market share of 95% out of which
60.8% is held by Coca-Cola and the rest belongs to Pepsi.
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Survey
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How do you feel the Coca-Cola products (products «.fanta ,minute maid«« ) compare with those of Pepsi Co. (Tropicana,Gatorade, etc...)?
Please pick the TWO options that apply, one regarding price and theother quality.
Coke products are better quality
Coke products are better priced
Pepsi products are better quality
Pepsi products are better priced
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How often do you purchase Coca-Cola products?
Regularly,
very often
Frequently
Occasionally
Rarely
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if Coca-Cola were to open its own chain of coffee shops such as
Starbucks, do you think they should connect it to their company
name?.
Yes
No
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Would the addition of the name of Coca-Cola influence you in anymanner?
I would have health concerns
It would be too expensive
I don't want to associate my coffee shop with such a large company
I would be confident buying their products as it is a popular brand
Other ( ««««««««««««««««««)
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What is your opinion of the entrance of Coca-Cola into the coffee industry? ??????
Coca-Cola should stick so sodas and juices
??????
Definitely not
How frequently do you purchase a product from a coffee shop?
Regularly
very often
Frequently
Occasionally
Rarely
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How much do you spend on each visit?
50
100
150
200 or above
Are you aware that Starbucks is affiliated to Pepsi CO? If yes go to
the next question, if no skip it.
Yes
No
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Do you feel you are getting what you paid for in regard to quality as well
as quantity? Please check the two options that apply
Yes - in term of quality
No - in terms of quality
Yes - in terms of quantity
No - in terms of quantity
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How old are you?
16 and under
17-20
20-30
30-40
40 and over
Are you
Male
Female
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How do you rate customer service at Starbucks?
Excellent
Good
Satisfactory
Below satisfactory
Bad
Do you feel Starbucks has a wide product range? How would you ratetheir product range?
Excellent
Good
Satisfactory
Below satisfactory
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Other than coffee, what products would you like to have made available
at coffee shops? (consumers write down what products they'd like to
have made available) .
..
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What method of advertising do you think would be the most effective for
Coca-Cola's coffee shops?
Billboards
Television ads
Magazine/Newspaper ads
Flyers
Radio
Through other Coca-Cola products ( on bottles, cans, etc...)
Through the promotion of other Coca-Cola products
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With regard to the ambience, what qualities appeal to you about coffeeshops?
Small and cozy
Upper scale and fancy
Casual place where you can spend time with friends
Very social
Quiet atmosphere where you can work, read, etc...
European style (outdoor seating, etc...)
Other
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Would you like for there to be entertainment at the coff ee shop?
If yes answer the following question, if no please skip to next question
Yes
No
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What sort of entertainment would you like to have?
Live music (jazz nights, live bands, etc...)
Jukeboxes
Television
Reading nights
In store library (selection of books made available to read on location)
Comedy nights (stand up comedians, etc...)
Other
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Do you think Coca-Cola should make its other beverages available at the
coffee shop?
Yes
No
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For what reasons do you visit coffee shops?
Personal/alone time
To be with friends
Before or after work/college business meetings
with the family
to socialize
Other
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In what locations do you think a coffee shop would be convenient?
In Common popular areas (malls, outlets etc...)
Near work or school
Near home
Near the park In less crowded locations
Other
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How important are each of the following when choosing a coffee shop?
Please rank the options from 1 being the least important to 9 being the most.
Taste
Customer service
Health Convenience
Speed
Location
Atmosphere
Variety Price Rank values must be between 1 and 9
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How likely are you to purchase products from Coca-Cola's coffee shops?
Extremely likely
Pretty likely
Pretty unlikely
Definitely not
What products are you most likely to purchase at coffee shops?
Coffee/Lattes/Cappuccinos
Tea
Hot chocolate
Confectionary items (cake, cookies, etc...)
Other
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Do you believe that Coca-Cola coffee shops should market their own
merchandise, such as Starbuck's cups and coffee?
Yes
No
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Focus group
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Focus group
When the economy droops, managers use every affordable tool to assess
business risks and opportunities. The focus group is a favorite option. It's
cheap, quick, and easy²all you need is a moderator, eight bodies, a topic,
and a two-way mirror
"The focus group enables a small number of people to work together to
solve a specific type of problem. It is one of the most misused techniques
because it is easy to execute when done incorrectly,
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Focus groups provide a single data point, not a statistically valid estimate
from a random sample of the target audience
Given those limitations, companies can use focus groups effectively in two
different ways:
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1. To design other types of research. Focus groups can isolate issues that a
survey could later quantify.
For example, before Coca-Cola launched its ill-fated New Coke, a focus
group revealed that customers might react very negatively to a change in
the soft drink's formula.
It helps to guide the validation process.
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2. To interpret the results of other research. GM's Hartley regularly
compiles quantitative ratings for new automobile designs by surveying
roughly forty people in the target demographic.
He follows up with a focus group of three people to understand, for
example, why all respondents gravitated toward automobile design A
instead of design B. Use focus groups not to draw conclusions, but to
understand the conclusions drawn.
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f indings
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back
to "Coca-Cola." The word "Classic" was truncated because "New Coke"
was no longer in production, eliminating the need to differentiate between
the two. The formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the
labels of 16-US-fluid-ounce (470 ml) bottles sold in parts of the
southeastern United States.
The change is part of a larger strategy to rejuvenate the product's image.
The word "Classic" was removed from all Coca-Cola products by 2011.
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In November 2009, due to a dispute over wholesale prices of Coca-Cola
products, Costco stopped restocking its shelves with Coke and Diet
Coke, However, some Costco locations (like the ones in Tucson,
Arizona sell imported Coca Cola from Mexico.
Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on
September 22, 2011, the company announced price reductions, asking
retailers to sell eight-packs for $2.99. That same day, Coca-Cola
announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce bottle
has sold well at 99 cents since being introduced, but the price was goingup to $1.19.
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Production
Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup depending on country of origin)
Caff eine
Phosphoric acid
Caramel color (E150d)
Natural flavorings[33]
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates
(all from sugar, approximately 10 teaspoons),[34] 50 mg of sodium,0 grams fat, 0 grams potassium, and 140 calories.[35]
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Botteling
In 2007, Coca-Cola introduced an aluminum
can designed to look like the original glass
Coca-Cola bottles.
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External environment
n 1915, the Coca-Cola Company launched a
competition among its bottle suppliers to
create a new bottle for their beverage that
would distinguish it from other beverage bottles, "a bottle which a person could
recognize even if they f elt it in the dark, and
so shaped that, even if broken, a person couldtell at a glance what it was."
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Root and his subordinates decided to base the bottle's design on one of the
soda's two ingredients, the coca leaf or the kola nut, but were unaware of
what either ingredient looked like.
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Coca leaf and kola nut
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Porter five forces analysis
Porter's Five Forces is a framework for industry analysis and business
strategy development formed by Michael E. Porter of Harvard Business
School in 1979.
It draws upon Industrial Organization (IO) economics to derive five forces
that determine the competitive intensity and therefore attractiveness of a
market. Attractiveness in this context refers to the overall industry
profitability. An "unattractive" industry is one in which the combination of
these five forces acts to drive down overall profitability.
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Porter referred to these forces as the micro environment, to contrast it
with the more general term macro environment. They consist of those
forces close to a company that affect its ability to serve its customers
and make a profit. A change in any of the forces normally, requires a
business unit to re-assess the marketplace given the overall change inindustry information
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Porter¶s Five Forces
Assessing the Balance of Power in a Business Situation
Understanding the Tool
Supplier Power
Buyer Power
Competitive Rivalry
Threat of Substitution
Threat of New Entry
Using the Tool
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