coca cola consumer buying behaviour

8/10/2019 Coca Cola Consumer Buying Behaviour

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A

PROJECT STUDY REPORT

ON

The study of consumer buying beh!ior in mid segment co"d drin#s$ %ith s&eci"

reference to COCO CO'A(

Submitted in partial fulfillment for the

Award of degree of Bachelor of Business Administration

SUBMITTED BY : SUBMITTED T :

AN)*T )U+AR NA,AR DR-SONA' JA*N+.A *** SE+ /0OD1

!"##$#!

DEEPS0*)0A CO''E,E O2 TEC0N*CA'EDUCAT*ON3 JA*PUR


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PRE2ACE

Soft drink includes all types of non alcoholic carbonate flavoured or otherwise sweetened

beverages. Soft drinks are mostly packaged in 200 ml, 300 ml, 500 ml, 1000 ml, 1500 ml,

and 2000 ml and comes in a variety of flavours. t also comes in glass as well as in plastic

bottles.5ince so many changes and transformations are under going ever changing

consumer demands, !ovt. "olicies and innovative packaging. #hen industries are much

emphasi$ing advertising to increase its sales.

%ith the introduction of fruit pulp based soft drinks, packaged in cardboard cartoons known

as '(()")*+& has been introduced in the market. #he bottled soft drink market has

undergone a marginal decreases in demand )fter 1- the eminent reentry of cocacola in

ndian soft drink ndustry it is heading for two giants war to capture the market. t has

introduced various sharp and efficient tools say tour packages, pri$es gift other avenues to

enhance social status and satisfying personal egos also.


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E5ECUT*6E SU++ARY

#his pro/ect was undertaken during the summer #raining. ) great deal of effort has been

put in preparing the uestionnaire, in order to understand the market better 7!ha$iabad8.

#he *oca *ola *ompany was incorporated in September 11 under the laws of the State

of 9elaware and succeeded to the business of a !eorgia *orporation with

the same name that had been organi$ed in 1:2. *oca *ola *ompany is

one of numerous competitors in the commercial beverages market. ;f the

approimately 53 billion beverage servings of all type of consumed

worldwide every day. everages bearing trademarks owned by or licensed

to company account for approimately 1.5 billion. *oca*ola, the corporate

nourishing the global community with the world> due to change in ndian !overnment

policies..

Ob7ecti!es$ 8

9- 'tent to which merchandising assets are being used by the retailers in promoting

the brands.

:- arket demand of *oca *ola and #humsup vis?vis "epsi.

;- arket demand of 6anta vis?vis irinda;

up vis?vis irinda@

=- arket demand of aa$a vis?vis Slice.

>- arket comparison of all the available brands of the soft drinks in the market.


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?- rands availability of *ocacola and its brands vis?vis "epsi and its brands.

#he scope of the study was limited to ndian arket. #his pro/ect was conducted for

*oca *ola @imited to assess the preferences of *ustomer in ndia. . 9ata collected

with help of uestionnaire was put in ecel sheets. ) survey of -00 *ustomer was

conducted in !ha$iabad. #he sample has covered the *old 9rink *ustomer of other

*ompetitor also as to understand the competition and their strength and

weaknesses.

A .R*E2 DESCR*PT*ON O2 T0E 2*ND*N,S$8

9- E@tent to %hich merchndising ssets re being used by the reti"ers in

&romoting the brnds$ 8

(etailer who are having 9"S oards A !S and other display material like stands, posters

etc. were selected. 9isplay material on the retailers shop was given rank between 93 : nd

;according to their visibility. f the 9"S oards A !S and other display material werefound visible at first sight then they have been ranked 9st, if they were found visible at

second sight then they have been ranked :nd otherwise ;rd.n the similar fashion ranks

were allotted to the refrigerators in the retailers shop.

%hile entering each shop it was taken care that the display materials are properly ranked

according to there visibility and incase of confusion, opinion of the consumers were taken.

#hose shops with !S


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6or this, retailers were asked about the market demand of the different brands and they

have been asked to rank the brands with respect to their competitive flavors. n this also

some interesting facts came out like no lemon brand eists in front of *oca *ola. ;ur

'imc, which we were thinking that it will be competing with +ountin de%, actually it is

grabbing the Coc8Co"sS&rites market and Pe&sis3?u&smarket. n case of +irind

/O1and Coc8Co"s 2nt, +irindsmarket is going up day by day.

n case of mango drinks S"iceeven after entering the market so late has been able to

uickly pick up with +. 6rom the day Tetr S"ice has entered the market it has

captured the market of 2rooti.

n case of Aufin, Coc8Co"s )in"eystands nowhere but brands which are competing

with kit are Prs, .is"eri3 nd )ingfisher-

;- +r#et com&rison of "" the !i"b"e &ic#ings of the soft drin#s in the mr#et$ 8

n the market this study is done to find out that on which packing, company should

concentrate more. 6rom the day company has introduced its :FFm"packs, Coc8Co" is

more economical for the lower income grade consumers like (ikshapullars and others.


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#he consumption of sugarsweetened soft drinks is associated with obesity,E12FE13Ftype 2

diabetes, dental cavities, and low nutrient levels.E13F'perimental studies tend to support a

causal role for sugarsweetened soft drinks in these ailments, E12FE13Fthough this is challenged

by other researchers.E1-FE15F&Sugarsweetened& includes drinks that use highfructose corn

syrup, as well as those using sucrose.

/Coc Co"1 is a Soft 9rink company. #he main ob/ective of this company is to provide the

best services to their customer in low cost as compared to their competitor. #hey offer more

Dealthy and sweetest drink in marginal cost. ;ccasionally they give some offers for the

benefit of the customers and retailer and distributor.

hope will recogni$e this as well as take more references from this pro/ect report. D(

department has been given more emphasis for the study of the pro/ect because it is the

only sector where all type of )ge group, ncome class and different level of people are

represented.

*oca *ola *ompany manufactures and sells beverage concerates, sometimes referred to

as Gbeverages basesH and syrups, including fountain syrups, and finished beverages.

Jo Di#ht 0i 4o .i#t 0i(
http://en.wikipedia.org/wiki/Obesityhttp://en.wikipedia.org/wiki/Soft_drink#cite_note-Malik.2C_Schulze.2C_.26_Hu_.282006.29-11http://en.wikipedia.org/wiki/Soft_drink#cite_note-Vartanian.2C_Schwartz.2C_.26_Brownell_.282007.29-12http://en.wikipedia.org/wiki/Diabetes_mellitus_type_2http://en.wikipedia.org/wiki/Diabetes_mellitus_type_2http://en.wikipedia.org/wiki/Diabetes_mellitus_type_2http://en.wikipedia.org/wiki/Dental_cavitieshttp://en.wikipedia.org/wiki/Malnutritionhttp://en.wikipedia.org/wiki/Soft_drink#cite_note-Vartanian.2C_Schwartz.2C_.26_Brownell_.282007.29-12http://en.wikipedia.org/wiki/Soft_drink#cite_note-Malik.2C_Schulze.2C_.26_Hu_.282006.29-11http://en.wikipedia.org/wiki/Soft_drink#cite_note-Malik.2C_Schulze.2C_.26_Hu_.282006.29-11http://en.wikipedia.org/wiki/Soft_drink#cite_note-Vartanian.2C_Schwartz.2C_.26_Brownell_.282007.29-12http://en.wikipedia.org/wiki/Soft_drink#cite_note-Gibson_.282008.29-13http://en.wikipedia.org/wiki/Soft_drink#cite_note-14http://en.wikipedia.org/wiki/High-fructose_corn_syruphttp://en.wikipedia.org/wiki/High-fructose_corn_syruphttp://en.wikipedia.org/wiki/Soft_drink#cite_note-Malik.2C_Schulze.2C_.26_Hu_.282006.29-11http://en.wikipedia.org/wiki/Soft_drink#cite_note-Vartanian.2C_Schwartz.2C_.26_Brownell_.282007.29-12http://en.wikipedia.org/wiki/Diabetes_mellitus_type_2http://en.wikipedia.org/wiki/Diabetes_mellitus_type_2http://en.wikipedia.org/wiki/Dental_cavitieshttp://en.wikipedia.org/wiki/Malnutritionhttp://en.wikipedia.org/wiki/Soft_drink#cite_note-Vartanian.2C_Schwartz.2C_.26_Brownell_.282007.29-12http://en.wikipedia.org/wiki/Soft_drink#cite_note-Malik.2C_Schulze.2C_.26_Hu_.282006.29-11http://en.wikipedia.org/wiki/Soft_drink#cite_note-Vartanian.2C_Schwartz.2C_.26_Brownell_.282007.29-12http://en.wikipedia.org/wiki/Soft_drink#cite_note-Gibson_.282008.29-13http://en.wikipedia.org/wiki/Soft_drink#cite_note-14http://en.wikipedia.org/wiki/High-fructose_corn_syruphttp://en.wikipedia.org/wiki/High-fructose_corn_syruphttp://en.wikipedia.org/wiki/Obesity


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Contents

T*T'E Pge No81. I#(;9J*#;I ;6 I9JS#(K H890

which got moderate success. Dowever, before this, it had also introduced *ola"epino

which was withdrawn in face tough competition from *ocacola.

*oca*ola serves in ndia some of the most recalled brands across the world, which

include names such as *oca*ola, 9iet *oke, Sprite, 6anta, along with the Schweppes

product range. #he acuisition of #hums Jp brought some of the leading national soft

drinks like #hums Jp, @imca, aa$a, *itra and !old Spot under its umbrella. #o add to this,

+inley mineral water was launched in the year 2000.

T0E 6A'UE C0A*N

The Coca-Cola

Company

Bottler

Customer

Consumer


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%hen *ocacola bid farewell in 1>>, ndian market was open for various cold drinks and

several companies came forward pushing the different in the market. "arle people

introduced their *ola#humps Jp with a mightily bang saying GDappy days are here againH

as if happy days went away with *ocacola pure drinks of 9elhi, also without loosing much

time introduced pure drinks with *ampa ;range and *ampa @emon. odern bakeries

interested the market 9ouble Seven, ohan eakings with arry and "ick Jp M c9owell

with #hrill, (ush and Sprint and ndian arket where there was competition previously a cut

throat competition and heavy advertising was on. 'ach one was trying their best to be come

under one company with G) *lassH products in the field of soft drink business, now after a

long gapP !ovt. of ndia had given permission to the *oca*ola to start their business in

ndia. *oca*ola came with "arle to do business on the ndian soil. #hey are trying best

regaining its prestige which it had before.

#he government has adopted liberali$ed policies for the soft drink trade to give the industry

a boast and promote the ndian brands internationally. )lthough the import and

manufacture of international brands like "epsi and *oke is enhanced in ndia the local

brands are being stabili$ed by advertisements, good uality and low cost. #he soft drinks

market till early 10s was in hands of domestic players like *ampa, #humps up, @imca etc

but with opening up of economy and coming of I* players "epsi and *oke the market

has come totally under their control.

Soft drinks are available in glass bottles, aluminum cans and "'# bottles for home

consumption. 6ountains also dispense them in disposable containers Ionalcoholic soft

drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be

further divided into carbonated and noncarbonated drinks. *ola, lemon and oranges are

carbonated drinks while mango drinks come under non carbonated category.

#he market can also be segmented on the basis of types of products into cola products and

noncola products. *ola products account for nearly =1=2C of the total soft drinks market.

#he brands that fall in this category are "epsi, *oca *ola, #humps Jp, 9iet *oke, 9iet

"epsi etc. Ioncola segment which constitutes 3:C can be divided into - categories based

on the types of flavors available, namelyQ ;range, *loudy @ime, *lear @ime and ango.


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OPERAT*N, ,ROUP$8

#he ;perating !roup of *oca*ola. #he map is segmented into *oca *ola ;perating

!roupsQ )frica, 'urasia, 'uropean Jnion, @atin )merica, Iorth )merica, "acific, ottling

nvestments. *ertain prior year amounts have been reclassified to conform to the current

year presentation.

14 n 200>, *oca *ola adopted 6inancial )ccounting Standards oard 6)S4

nterpretation Io. -:, &)ccounting for Jncertainty in ncome #aes& and recorded an

approimate R=5 million increase in accrued income taes in their consolidated balance

sheet for unrecogni$ed ta benefits, which was accounted for as a cumulative effect

ad/ustment to the Oanuary 1, 200> balance of reinvested earnings.

24 n 200=, *oca *ola adopted Statement of 6inancial )ccounting Standards S6)S4

Io.15:, &'mployersB )ccounting for 9efined enefit "ension and ;ther "ostretirement

"lans an amendment of 6)S Statements Io. :>, ::, 10=, and 132(4.&

34 *oca *ola adopted 6)S Staff "osition 6S"4 Io. 102, &)ccounting and 9isclosure

!uidance for the 6oreign 'arnings (epatriation "rovision within the )merican Oobs

*reation )ct of 200-& in 200-. 6S" Io. 102 allowed the *ompany to record the ta

epense associated with the repatriation of foreign earnings in 2005 when the previously

unremitted foreign earnings were actually repatriated.

-4 *oca *ola adopted 6)S nterpretation Io. -=(4, &*onsolidation of Nariable nterest

'ntities,& effective )pril 2, 200-.


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*NTRODUCT*ON

O2

CO+PANY


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:- *NTRODUCT*ON O2 CO+PANY

f we ndians recall our memory there was a time when one was asked for a soft

drink, the brand that comes and gave a knock on our mind was *oca*ola. *oca*ola, the

word most admired trademark has maintained its special a sense of belongingness to ndia,

which had resulted some sort of its monopoly throughout the ndian soft drink market. t has

been said that the internal environment of the industry has been greatly effected from its

internal environment. #he same thing was also happen with this famous company. %hen

the !overnment policy were in introduce and forced this I*Bs to go outside from the ndia

market. Dence, it was thrown out of ndia in the year 1>>. ) lacuna was created at that

time in the countryBs soft drinks market. Dow ever after a gap of 1> years, the *ocacola

has reappeared in the soft drinks market of ndia, by making itself more strong and

confident in this field.

n todayBs market, the colaBs *oke, #humsup, "epsi, etc.4 had a >0C share, @emon

10C and ;range 20C. #here appears to be a concentrated rush to bag a share in the soft


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CO+PANY ,OA'$8

*ompany goal is to use the *ompany


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&t occurred to him that *oca*ola in bottles would be very popular&, @ovell said, &r.

*andler did not see any future in it because the containers were not sound, but thatBs how it

all came about. homas and %hitehead promised to pay one dollar for the right to bottle

*oca*ola, but legend has it that no money changed hands.

T0E *+A,E$8

#he image is communicated all around the world in advertisement on media such as

newspaper, maga$ines, radio and televisions. #he list goes on....

Dowever, image is much than /ust advertising every person working within the cocacola

system is part of the image whether one is involved in creating its advertising, making itBs

uality products, or selling, merchandi$ing and distributing its beverage their hard work and

attitude will say something to the people about its product.

COCA8CO'A SYSTE+ 2'O4 C0ART

n todayBs market, the colaBs *oke, #humsup, "epsi, etc.4 had a >0C share, @emon 10C

and ;range 20C. #here appears to be a concentrated rush to bag a share in the soft drinks

Raw Material

Coca-Cola

Bottler

Customer

*onsumer


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market. 9ue to a manifold increase in the demand of soft drinks large number of company

has entered into this competitive market scenario.

COCA CO'A$ T0E STORY .E0*ND$8

*oca*ola was formulated in 1::= by 9r. Oohn "emberton, a "harmacist in )tlanta,

!eorgia. #he drink was sold ad refreshing eliir at the fountain counter of OacobBs

"harmacy of which 9r. Oohn "emberton was part owner, unaware that the pharmacist had

given birth to a caramel colored syrup which is now the chief ingredient of the worlds

favorite drink. #oday the whiteonred flow of *oca*ola is familiar sight in more then 15

countries. #he syrup combines with the carbonate water to fuel a R 1=.2 billion corporationthat has captured a -=C Slice of the global soft drinks market. #he company estimates that

the drink is served more than >>3 million times every day and if all *oke ever produced

were filed in standard bottles and placed end to end it would wrap around the euator 21,

1=1 times.

#he story of *oca*ola is a story of a drink and its charm with the consumer. #he of

ecstasy and again that the drink has caused to those dedicated to its growth "embertonfirst managed to sell and average of drinks per day, though a shop called OacobBs

pharmacy, in 1:1, *andler bought *ocacola company with four companies he formed the

cocacola company with the initial stock of R100,000. *oca*ola was registered at the JS

patent office in 1:3, and began selling at soda fountains for 5 cents a glass of therapeutic

refreshment 1:-, got into bottles, courtesy a candy merchant Ooseph oedenharn of

ississippi.

6ive years laterP the drink was being bottled on a regular basis under a region wise

franchising systemP and its first competitor "epsi cola, *oca*olaBs first bottling plant

opened in *hatanooga, #ennessee followed by another in )tlanta in 100. #he uniue taste

of cola was an outstanding success. ;ver the net two decade the number of plants

crossed 1000. n a bit to difference the prodect, the company adopted =.5 ounce, pale

green countor bottle designed by the root glass company of #erri Daute, ndiana. #oday it is

an intrinsic part of the brand.


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#he company broadened its hori$ons when (obert %oodruff the son of a banker who

acuired to *ompany for R25 million in 11, assumed charge in 123. De began by

ungrading bottling operations, brought in innovations like a sibottle carry home carton,

and gear up advertising support. t was under %ood (uff that the brand. +nown

affectionately as coke by now associated it self with sportive events. y the early 1-0Bs the

brand was selling as the &real thing& to set it self apart from &me to& colaBs.

)s a time went by the company brought out some new aerated drinks. #he first one &6anta&

appeared in the selves in 1=0.

ts birth was an accident, the companyBs !erman name is an attempt to produce *oca*ola

without some key ingredients, turned out into an orange flavored drink instead. its

strategists who feared the dependence on /ust one put a cap on growth welcomed it. %hile

6anta was being rolled out the company bought minute made cosrp. %hich in 1=> was

combined with 9uncan foods to pave way for the *oca*ola foods. Several beverages

followed the most notable being BspriteB, a lemon drink developed in the late 150 and

formally launched in 1=1.

*oca*ola had diversified the company into businesses and it even had a steam generator

and boi:ler making division. (obert * !oi$ueta, *uban born 2> years veteran took over as

the *oca*ola unlike "epsi company depended on a single brand. #he best insurance

policy that he figured was to let coke evolve to the summer slacking it with variants, even

reinventing if needed. n 1:2, the company launched what is now considered among the

worldBs most successful brand etensions B9iet *okeB, under the leadership of Sergio

Tyman, the head of us marketing. #he idea was to retain the loyalty for the health

conscious drinker who loved the taste but hated the calories. )fter this it came out with

cafeeine free versions of its main drinks. yet in the JS the company kept losing ground to

"epsi. $yman, a former "epsi marketer argued that the correct strategy was to replace :

year old with better tasting cola, label it as &Iew *oke& and blare the news which is eactly

what the company did more a decode age in 1:5. ut when placed on the shelves it did

not budge. ;n wide spread protest it was recalled after > days.

#he company has about 100 brands in its portfolio but coke, 6anta and sprite account formost of its sales. n 1-, the real thingBs coke sold over 52.5 billion liters. 6or the taste of it

diet coke along with *oca*ola light sold :.5 billion liters, which makes it the worldBs two top


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non cola drinks sold over =.5 billion liters each. %hich sprite aimed at the independent

youngster two does not care what as others drink the as line &obey youBre a thrust&4. n

13, *oca*ola reentered ndia after a 1= years ling eile, four years "epsi made its debut

ndia. %hile *oke plays on brand nostalgia. "epsi address the young crowd, which unlike a

in )merica is a dominate ort if the population here.

T0E COCA8CO'A CO+PANY$8

#he *oca *ola *ompany is the worldBs largest beverage company. )long with *oca

*ola, recogni$ed as the worldBs best known brand, #he *oca *ola *ompany markets

four of the worldBs top five soft drink brands, including diet *oke, 6anta and Sprite, and a

wide range of other beverages, including diet and light soft drinks, waters, /uices and /uice

drinks, teas, coffees and sports drinks. #hough the worldBs largest distribution system,

consumers in more than 200 countries en/oy #he *oca *ola *ompanyBs products at a rate

eceeding 1 billion servings each day. 6or more information about the *oca *ola

*ompany, please visit our website at httpQ AA www.coca cola.comA.

2or%rd 8 'oo#ing Sttements$8

#his press release may contain statements, estimates or pro/ections that constitute &forward

looking statements& as defined under J.S. federal securities laws. !enerally, the words

&believe,& &epect,& &intend,& &estimate,& &anticipate,& &"ro/ect,& &will& and similar epressions


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identify forward looking statements, which generally are not historical in nature. 6orward

looking statements are sub/ect to certain risks and uncertainties that could cause actual

results to differ materially from #he *oca *ola *ompanyBs historical eperience and our

present epectations or pro/ections. #hese risks include, but are not limited to, changes in

economic and political conditions, changes in the non alcoholic beverages business

environment, including actions of competitors and changes in consumer preferencesP

product boycottsP foreign currency and interest rate fluctuationsP adverse weather

conditionsP the effectiveness of our advertising and marketing programsP fluctuations in the

cost and availability of raw materialsP our ability to achieve earnings forecastsP regulatory

and legal changesP our ability to penetrate developing and emerging marketsP litigation

uncertaintiesP and other risks discussed in our *ompanyBs filings with the Securities and

'change *ommission the &S'*&4, including our )nnual (eport on 6orm 10+, which

filings are available from the S'*. Kou should not place undue reliance on forward looking

statements, which speak only as of the date they are made. #he *oca *ola *ompany

undertakes on obligation to publicly update or revise any forward looking statements.


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OR,AN*AT*ONA' STRUCTURE

CHAIRMAN

PRESIDENT

VICE PRESIDENT

R!M

A!M

ISM "M. SM PM HRM

M#E ASM SE

SE SE SE


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4here3

R-,-+- $ (egional !eneral anager

A-,-+- $ )rea !eneral anager

*-S+- $ nformation System anager

2-+- $ 6inance anager

S-+- $ Sales anager

P-+- $ "roduction anager

0-R-+- $ Duman (esource anager

A-S-+- $ )rea Sales anager

+-O-E- $ arketing ;peration 'ecutive

C-D-E- $ *old 9rink 'ecutive

S-E- $ Sales 'ecutive


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PRODUCT PRO2*'E O2 COCA CO'A$8

#he product range of the coke has listed brandsQ

*oke Q 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt

#humps J"Q 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

@imcaQ 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

6antaQ 200ml, 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

SpriteQ 300ml, 330ml, 500ml, 1lt, 1.5lt, 2lt.

a$$aQ 250 ml, #etra "ack

9iet *okeQ 330ml, 1.5 lt, 2lt.

+n. SodaQ 300ml, 500ml,

+n. %aterQ 500ml, 1lt, 2lt,

Some fcts About Coc Co" P!t 'td$8

0ed office )tlanta J.S.)4

Cor&orte office 'nkay #owers,

Jdyog viharN,

!urgaon,Daryana

Chief E@ecuti!e officer )le von ehr

Tot" *n!estment (s.3200 *roreO%ned .ott"ing P"nts 35

No- of 2rnchisees 1=

No- of Em&"oyees =000


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T0E 2UTURE O2 COCA8CO'A$8

%hile dong business overseas offers *oke wonderful growth opportunities it also has its

own disadvantages. #he economic slowdown in various overseas markets and the strong

dollar had their impact on *oca*ola revenues and bottom line in 1. ut the company

optimistic about the future.

c9ouglas nvestor, #he *hief 'ecutive ;fficer of the *oca*ola *ompany says, his

past year 1 has been a challenging period for the *oca*ola *ompany as economic

environment became more uncertain in the later part of 1, we strongly believe that our

fundamental opportunities for long term growth have not changed&.

)s long as maimi$ation of share holder wealth remain cokeBs focus for its future- is

assured !oi$ueta had stated and proven to the world that focus on shareholder wealth

does more good to the company than focus on revenues and it is not hat coke does not

en/oy volumes for it is worldBs Io. 1 soft drink manufacture. t is not content with this title

and is aiming at higher volumes year after year. Surely coke will continue to grow. "oint on

(oberto had reduced the company basically to its trademark and the returns are so

astronomical as to be off the boards. t /ust absolutely added a /et engine to their

performance.

CO)ES .OTT'*N, STRATE,*ES$8

n the soft drink business the bottlers are responsible significant etent for ensuring the

availability of the products. ottlers are supplied with concentrate to which they add aerated

water and bother ingredients before packing and sealing either cans or bottles. ottlers play

a strategic role in the success of soft drinks companies and this was not far from !oiuetaBs

mind.

n 1:= the company merged some of its company owned bottling operations with two large

ownership groups that had been put up for sale. )ll these bottling activities were combined

to from its own subsidiary *oca*ola 'nterprises **'4 to handle bottling operations. #he

*oca*ola *ompany took - percent euity stake in *oca*ola 'nterprises enabling it to

retain its own balance sheet.


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+AR)ET P'ACEQ

ore than a billion times everyday, thirsty people around the world reach for *oca*ola

products for refreshment. #hey deserve the highest ualityevery time. ;ur promise to

deliver that uality is the most important promise we make. )nd it involves a worldwide, yet

distinctively local, network of bottling partners, suppliers, distributors and retailers whose

success is paramount to our own. ;ur investment in local communities in over 200

countries totals billions of dollars in /obs, facilities, marketing, the purchase of local goods

and services, ands local business partnerships, always and everywhere, we pursue

continuous innovation in the products we offer, the processes we use to make them, the

packages we develop and the ways we bring them to market.

CO+PET*TOR$8

#he biggest and perhaps the only serious for the cocacola worldwide has an already

been "epsi. n ndia, as per as the *ola segment is concerned the with the biggest

competition to coke comes from its brands of "epsi vi$. "epsi and irinda. #humsup,

which was the leading brand of "arley product, was acuired by *oca*ola /ust over a year

ago to bolster its market share in ndia. #oday, #humsup along with coke, the leading

brand of the *oca*ola *ompany, other still competition to "epsi, which despite this stiff

competition is still by far the single most popular *ola drink in ndia

%ith both the companies being backed fully by the parent concerns based in the

united state, the fight to become the dominant player in the huge ndian Soft drink market

continues unabated. )ggressive ad campaignBs, salepromotion, schemes for retailers are/ust some of the strategies being adopted by the two companies to outwit each other and

grab and large share of the market.

n the *ola segment, which occupies by far the largest chunk of the soft drink market

in ndia, the market share of *oke is =0Cwhile the market share of #humsup is 32.1=C.

#he market share of *oke in this *ola Segment is 2>.:-C. #he remaining market share is

occupied by the other brands, which constitute about 1-C of the *ola market share.


29/84

So *oca*ola with its two brand clubbed together i.e. #humsup U *oke occupies a

combined market share of =0C 32.1=C U 2>.:-C4

which is /ust higher than the market share occupied by "epsi on the all ndia basis.

#he market share for the *ola segment of different in ndia is given in !raph belowQ

#he fight between the (s. 1,000 *rore "epsi co. ndia. "epsi and *oca*ola ndia,

#he fully owned subsidiary of the R 1:.55 illion )tlanta based he *oca*olaB company to

become ndiaBs Io. 1 player seems likely to continue unabated over the net four years&.

PEPS* PRO2*'E$8

"epsi *o. nc. was founded in the year 1=5. a/or products of the new company are "epsi

*ola. 9iet "epsi and ountain 9ew. "epsi entered the ndian market in 12 and now is

the market leader with a market share of 2=.5 percent in the cola segment. "epsi is in

between the two of itBs closet competitors as far as marketing strategies are concerned.

"epsi is an international drink with ndian imagery in itBs communication #raditional focus of"epsi has been on the early teenager with a gender skew more to the female.

"epsi is by far the more aggressive player in the market. %ith in your face advertising

continuous event marketing targeting the new generation and eye catching merchandising.

tBs got its selling strategy well mapped out.

#he company has always been innovating itBs ad campaigns which has helped the

company to get top of the mind recall. 6rom he choice of the new generation& to the

&6reedom& campaign the company has been able to ndianise the brand. %ith the help of

promotional schemes "epsi has managed to keep the brand alive and has not let it become

old. 9uring 15 the total ad spent by the company was (s. =.: crore only on television

"epsi has set aside (s. : crore for its advertising programme in the run up to and during

the cricket world cup.


30/84

Product "ines of Co#eK Pe&si re s fo""o%s$8

2'A6OUR CO)E .RAND PEPS* .RAND

*ola *oca*ola

#humsup

*oke diet

"epsi

"epsi diet

;range 6anta irinda

*loudy @emon @imca irinda lime

*lear lime Sprite >up

ango aa$a Slice

Pe&si .rnd Nme

Slice> upmirinda lime

mirindapepsi 9ietpepsi

pepsi pepsi 9iet mirinda mirinda lime > up Slice


31/84

CO+PET*T*6E AREA$8

#he soft drink market all over the world has been witnessing a neck to neck battle between

the two ma/or players, *oca*ola and "epsi since the very beginning. #he thirst uenchers

are trying hard to have to ma/or chunk of the pie of carbonated soft drink market. oth the

players are spending their energies in building capacity, infrastructure, promotional

activities etc.

*ocacola being 11 years older than "epsi has dominated the scene in most of the soft

drink markets in the world and en/oying leadership in terms of market share. ut the *oca

*ola people are finding it hard to keep away "epsi, which has been narrowing the gaps

regularly. #he two are posing threats to each other in every nook and corner of the world.

%hile *oca*ola has been earning most of its bread and butter through beverage sales,

"epsi has a multi products portfolio with some portion from the same business.

#he two warriors are face to once again here in ndia with different strategies and tactics to

attack the rival. *oca*ola is focusing upon the /oint ventures with the eisting bottlers

2O.O1 frnchise o%ned bott"ing o&ertions to enhance its control on manufacturing

and marketing of its products range and attain the uality standards of its class.

*ountering it "epsi has taken the battle its own hands by floating as investment of R 5

billion to set "epsi *ompany. ndia holdings, as subsidiary for CO.O1 Com&ny o%ned

bott"ing o&ertions- oth the companies are following different path to reach the same

destiny i.e. to fetch the bigger portion of aerated soft drink market. oth consider ndia

a huge potential market, as per capita consumption here is a mere 3 serving annually

against the world average of :0. #herefore, they are putting in their best efforts to woo the

ndian consumer who has to work for 1.5 hours to buy a bottle of soft drink. n comparison

to the international norms minutes, a ma/or hurdle to cross over for both the athletes for

getting Io. 1 position comparison tot he inter. *oca*ola is well set with its 53 bottling sites

through out the country giving tit an edge over competition by processing a wellbuilt

bottling and distribution setup. ;n the other hand, "epsi, with two more years in ndia, has

been able to set an image of a winner in ndia and has been able to get the pulse of the

ndia soft drink market. #he soft drink giants are leaving on stone unturned and her for the

long terms.


32/84

*oca*ola has been penetrating the market through its wide product range with a

determination to change consumption pattern of soft drink in ndia. 6irstly, they upgraded

the whole industry by introduction 300 ml bottles, which in turn had given the industry a

booming growth of 20C as compared to the earlier 5C. #hey want to develop a coca

culture here and are working on a strategy to offer soft drink in every possible package. n

*oca*ola camp, the idea of competition has not come from "epsi, but from the other

beverages such as tea, coffee, Iimbu "ani, water etc. "epsi is uite aggressive in its

approach to ndian *onsumer. #hey are desperately working on the strategy to be winners

in the hot cola war between two big barons. )ccording to "epsi philosophy, itBs the

madness that encourages eecutive to think, to con/ure up those creative tactics to knock

the fi$$ out their competition. "epsi had plumbed a large on the visibility of its blue red and

white logo. #hey have been going with aggressive marketing by putting Schin Tendu"#r3

A#shy )umr and now Shhru#h )hn in their advertisement to endorse their brand, the

role models for its targeted consumer the teenagers. #hey have increased the fi$$ in the

market place by

introducing the dispensers called 6ountain "epsi and has been en/oying a lead over its rival

there.

*oca*ola on the other hand, has been working on the saying slow and steady wins the

raceBs side by retailing to every more of its competitor. #hey have procured the shield of

#humsJp with a handsome market share in ndian soft drink market.

*ountering "epsiBs international commercial that used two chimpan$ees to cock a snoop at

coke, #humsup come with the ad line, Dont be .ndr3 tste the Thunder-)lso #hums

Jp has been positioned now very near to that young image of "epsi and giving it a though

time.

These coo" merchnts h!e &ut e!erything on fire- *t Co#e got the sttus of the

offici" drin# of %i""s- 4or"d Cu&3 Pe&si b"ushed s nothing offici" bout it- As

Thums8U& &ro7ected s BSaaree Oahan Se )chchaB Pe&si %s &ssionte enough %ith

B6reedom to beB nd no% the &Keh 9il ange ore& %hen Thums8U& cme %ith #hunder

last, the other offered B"epsi Stuff *ardB. *f (ed is ment for coke, "epsi hs chosen to

be blue.


33/84

+A*N CO+PET*TORS

COCA8CO'A 6Gs PEPS*

Coc8Co" Pe&si#otal nvestment in ndia (s. 250 *rores (s. 500 *rores

Iew nvestments (s. 2-00 *rores (s. 300 *roresIumber of 'mployee 1-0 2-00Iumber of owned bottling "lants 11Iumber of 6ranchisees 5- 15Iumber of 6ountain 1500 -000#otal nvestment by bottlers (s. 125 *rores IilIew "lants "lanned Iil =

Kear of 201011 4


34/84

;verall volume of *oca*ola products have increased by -0C whereas the industry growth

rate is 20C. @ast year total sale of soft drink ndustry in ndia was approimately 1>0 million

crates. ;ut of these around =0C was of *ola and other -0C was of non*ola rands.

Sources of 9ata Q #his @ast Kear data is provided by Sales 'ecutive of

*ompany.

+AR)ET*N, +*5$8

"rof. Ieil D arden defines marketing mi as Bthe appointment of effort, the combination,

the designing and integration of the elements of the marketing into a programme of mi

which will best achieve the ob/ective of the enterprise at the give time.&

arketing mi is the set of marketing tools that the firm uses to pursue its marketing

ob/ective of in the target market. #he marketing problems are analy$edQ1. y utili$ing the important forces emanating from the marketing operation of an

enterprise.

2. y adopting producer M for an efficient marketing programme.

E'E+ENTS O2 +AR)ET*N, +*5 $8

#he marketing mi denotes a combination of various elements which in their totally

constitute affirms marketing system. c*arthy populari$ed a four factor classification of the

se tools called the four "&s, product, price, place promotion.

PRODUCTS$8

"roduct variety

Vuality

9esign product


35/84

rand name

6eature

"ackaging

Si$e service

%arranties

(eturns

PR*CE$8

@ist "rice

9iscounts

)llowances

"ayment period

*redit teams

P'ACE$8 *hannels

*overage

"lace assessments

@ocations

nventory

#ransports

PRO+OT*ON$8

Sales promotion

)dvertisement

Sales 6orces

"ublic relations


36/84

9irect marketing

#he particulars marketing variable under each " are shown belowQ

< Ps < Cs

"(;9J*#

"(*'

"@)*'

"(;;#;I

*JS#;'( I''9

)I9 %)I#S

*;S# #; #D'

*JS#;'(

*;IN'I'I*'

*;JI*)#;I

D*STR*.UT*ON *N T0E COCA8CO'A SYSTE+$8

,ETT*N, PRODUCTS TO +AR)ET

;ne of the value of the cocacola system is presence that cocacola should eist

everywhere. n the words of former *';ndia operations Richrd Nichoi"s3 LOur go"

is to h!e co#e !i"b"e %ithin n rms rech of desireL- #o fulfill this gool, cocacola

not only produces products, but also has an effective systems to distribute them all overndia.

D*STR*.UT*ON$8

Distribution S"es M De"i!ery M +erchndising M 'oc" Account +ngemetn-

9istribution of *okeBs products includes the activities of sales, delivery merchandi$ing and

local accounts management. #hese are two ma/or types of distribution systems.

(i) Direct nd *ndirect$8


37/84

n direct distribution, the bottler partner direct control over the activities of sales,

delivery, merchandi$ing and local account management.

n indirect distribution, an organi$ation which is not a part of the cocacola systemhas control of one or more of the distribution elements Sales, erchandi$ing and local

accounts managements4.

%ith 9irect distribution there are two types of salesQ

Ad!nced s"es nd con!ention" s"es- $8

n conventional sales, all the distribution activities Sales, 9elivery, erchandi$ing and

@ocal )ccounts anagement4 are performed by the same persons.

n advanced sales, sales and delivery are performed by different people within the coco

cola system.

9ifference between a Customer and a Consumers-

) consumer is some one who drinks cocacola products.

) customer is a business location which sells or serves cocacola products to

consumers.

+ERC0AND**N,$8

;ne the products are delivered to the customerBs they are promoted at the pointofpurchase to maimi$e the companyBs sales opportunities, merchandi$ing involves looking at

the presentation of the products through the eyes of the consumers. t is an ongoing

process that help the company present its products properly to the consumers in the market

place for instance, is the display attractiveW )re the product neatly organi$ed.

PRESENT*N, T0E PRODUCTS$8

*oca*ola presents its products for sale in four different ways. #hey are as followsQ

Secondary 9isplay


38/84

*oolers

Nending achines

"ost i A "re i

*ND*AS RE'AT*ONS0*P 4*T0 COCA8CO'A$8

Oust after independence, the ahara/a of "atiala oversaw his coca*ola*ola hoarding

from his huge, ornate palace, *oca*ola eport representative 6rank Darrold, was awed by

the ahara/aBs opulent life style. n 13 after *oca*ola returned to ndia after a 1= years

absence beorge 6ernandes threw the company out of the country in 1>> on the pre tet

that it had refuse to divalge its formula to ndian officials4, *'; of the *oca*ola *ompany,

(obesto boirueta &Salivated over a virtually untapped market of :-0 million people&.

PRO+OT*ON $ T0E COCA8CO'A 4AY

,o" for the HFs $8

o place cocacola within an armBs reach of desire.

Consumer cti!ity c"usters$8

!rocery shopping

;ther shopping M services

'ating and drinking 'ntertainmentA (ecreation. @eisure

#ravel A #ransportationA Dospitality

'ducational

)t %ork

The ;As$8

#he strategy for reaching in creasing numbers of consumers in ndia is based on the belief

that consumers will buy our products it they are A!i"b"e3 Affordb"e and Acce&tb"e-


39/84

Strtegies for the ;As$8

6ocus on the consumer and customer,

#o provide uality customer services, and caring about the uality of performance in

respective /obs.

*aring enough about what we do, to it the best we know how.

#he 3)Bs is *oca*ola underlying strategy for meeting its goal to reach increasing numbers

of consumerBs. Dow does coke position its limited resources to help meet its good. @et us

eplore the specific ways in which the *oca*ola system addresses each of the 3)Bs.

A6A*'A.*'*TY$8

Some of the way sin which the *oca*ola *ompany hopes to increase availability of its

product include improved or innovative packaging, dispensing systems, distributions

system, marketing.

A22ORDA.*'*TY$8

#he ways to address affordability include pricing decisions, as well as resource

management. #o make its product available at a price affordable to the consumer.

*ontinually processes more efficient and therefore more costeffective.

ACCEPTA.*'*TY$8

aking coca*ola brand products the beverage choice for any occasionBs depends on a

variety of strategies to reach the target audience. #he common strategies adopted to effect

acceptability were though sponsorships, promotion youth market activities, community

programs, and other activates.

*oca *ola mission, vision and values outline who they are, what they seek to

achieve, and how they want to achieve it. #hese provide a clear direction for the *ompany

and help ensure that they are all working toward the same goals.

+*SS*ON$8

'verything *oca *ola do is inspired by their enduring issionQ


40/84

#o (efresh the %orld...in body, mind, and spirit.

#o nspire oments of ;ptimism...through their brands and their actions.

#o *reate Nalue and ake a 9ifferenceXeverywhere they engage.

6*S*ON$8

#o achieve sustainable growth, *oca *ola has established a Nision

with clear goalsQ

P"net $eing a responsible global citi$en that makes a difference.

Portfo"io$ringing to the world aportfolio of beverage brands that

anticipate and satisfy "eoplesB desires and needs.

Prtners$Iurturinga winning network of partners and building mutual loyalty. "rofitQ

aimi$ing return to shareowners while being mindful of our

6A'UES$8

*oca *ola is guided by shared Nalues that they will live by as a company and as

individualsQ

@eadership Q G#he courage to shape a better futureH

"assion Q G*ommitted in heart and mindH

ntegrity Q Ge realH

)ccountability Q Gf it is to be, itBs up to meH

*ollaboration Q G@everage collective geniusH

nnovation Q GSeek, imagine, create, delightH

Vuality Q G%hat we do, we do wellH


41/84


42/84

RESEARC0

+ET0ODO'O,Y


43/84

;- RESEARC0 +ET0ODO'O,Y

;-9 T*T'E O2 T0E STUDY$8

)ll the findings and conclusions are based on the survey done in the working area within

time limit. tried to select a sample representative of the whole group during my /ob training.

have collected data from 200 respondents for studying /Consumer .uying .eh!ior

4ith reference to Coc Co"(1arket Segmentation, selected randomly from different

areas in !ha$iabad.

;-: DURAT*ON O2 T0E PROJECT$8

1=thay 2011 to 30 Oune 2011-5 9)KS4

;-< O.JECT*6ES O2 STUDY$8

PR*+ARY O.JECT*6ES$8

#o find out to which etent merchandising assets are being used by the retailers in

promoting the product of cocacola

#o find out arket demand of *oca *ola and #hums up vis?vis "epsi

#o study marketing strategies adopted by cocacola.

#o study customer satisfaction about cocacola products.

#o study the effect of ('9 on boosting sales of cocacola products


44/84

#o find out arket demand of 6anta vis?vis irinda;

#o find out arket demand of @imca, Sprite vis?vis irinda@ and >up

#o find out arket demand of aa$a vis?vis Slice.

SECONDARY O.JECT*6ES$8

#o find out arket comparison of all the available brands of the soft drinks in the

market.

rands availability of *ocacola and its brands vis?vis "epsi and its brands.

;-= TYPES O2 RESEARC0$8

Dte sources$ sources of informtion re s fo""o%s$8

(1) Primry sources$8

%ho


45/84

(2) Number of Reti"ers contcted 200 (etailers.

Sur!ey Are$ )n&ur K NEAR .Y AREAS

1) +anpur, Station road

24 +anpur,ain market

34 haguwala arket ,+anpur (oad

-4 +otwali market ,@ucknow road

54 Shanpur, ain arket

=4 (aipur arket, Iagina (oad

>4 Daridwar road, *hidiapur

:4 +iratpur arket

4

(esearcher began his survey with route riding, i.e. traveling along with the sales persons on

his daily trip to service the retailers. (esearcher asked the retailers about their uses of

*ocacola merchandises and try to )sses the market share of the *ocacola


46/84

probability method is often used during preliminary research efforts to get a gross estimate

of the results, without incurring the cost or time reuired to select a random sample.

Dt co""ection method$8

6or the accumulation of data the sources were primary and secondary data.

"rimary 9ataQ

#hese data are raw material. #hey are the measurement observed and recorded as a part

of original study. #hey are original in character. #he investigator or researcher directly

collects this data. #he basic form of obtaining this data is by observing and uestioning.

#he "rimary data was a detailed interview schedule with the help of a detailed

uestionnaire. #he samples were drawn purposively from various areas for the relevance of

the study. 9iscussions were held with the general, branch manager and eecutives of the

company to design and eecute the research

Secondary 9ataQ

#hey are not originally drawn by the researcher as fresh data. #hese are collected by someother person for this purpose and published. #hese types of data can be collected through

various sources.

6or this study the secondary data were collected from maga$ines ,/ournals , references and

websites and manuals of the dea.

Too"s nd techniues of n"ysis

"ercentage analysis and statistical tools were used in the study. #he statistical tools usedfor data analysis are (ank correlation and hypothesis testing. )I;N) and t test had

applied for hypothesis testing.

(ank *orrelation Y

f (ank *orrelation is negative we can say that there is no correlation between the variable,

if rank correlation is positive we can say that there is a relation between the variable, if the

(ank correlation is less than.0= we can say that there is a low degree of relation between

the variable, if rank correlation greater than .0= we can say that there is high degree of


47/84

relation between the variables and if (ank *orrelation is very nearer to 1 such as . we

can say that there is very high degree of relation between the variable.

;-> SCOPE O2 T0E STUDY$8

Study of +ngement of RED he"&s the mngement in the fo""o%ing %ys$8

t improves management


48/84

"eople were not interested in filling uestionnaire properly.

t is very small research, which may be insufficient to give the real picture.

2ACTS

K

2*ND*N,S


49/84


50/84

=- ANA'YS*S K *NTERPRETAT*ON

22*,URE*,URE99

Out of Coc8Co" nd Pe&si .e!erges *ndi 'imited

%hose ,S. do you h!e

"

11C

*oca.*ola1-C

oth

5C

Ione

>0C

"

*oca.*ola

oth

Ione

;ut of the sample si$e which has been covered only 11 C of the shops had "epsi


51/84

shows that retailers who got the !S as display material from the company are

using them satisfyingly.

-C of the shops having *oca*ola !S


52/84

from the company are using them satisfyingly.

>0C of the shops having *oca*ola 9"S oards got the rn# 9staccording to their

visibility status on the other hand 1:C of the retailers got the rn#:

nd

and only 12Cof the retailers got the rn# ;rd. #his shows that in comparison to *oca*ola,

"epsico.C C of the shops, had

*oca*olaC of the sample si$e didn


53/84

Rn#ing ccording to !isibi"ity 8 Pe&si

=:C

2-C

:C

(ank 1

(ank 2

(ank 3

Rn#ing ccording to !isibi"ity 8 Coc Co"

33C

=>C

0C

(ank 1

(ank 2

(ank 3

=:C of the shops having "epsico. refrigerators got the rn# 9staccording to their

visibility status on the other hand only 2-C of the retailers got the rn#s:ndand :C

of the retailers got the rank ;rd. #his shows that retailers who got the refrigerators as

display material from the company are not using them satisfyingly.

;nly 33C of the shops having *oca*ola refrigerators got the rn# 9staccording to

their visibility status on the other hand =>C of the retailers got the rn#:ndand none

of the retailers got the rn# ;rd. #his shows that in comparison to *oca*ola,

"epsico.


54/84

n the *oca*ola


55/84

Dindustan everages ndia, 13C voted for the shortage of the different packing.

9espite of all the above reasons a huge segment 3=C blame it to different other

reasons for below optimum use of refrigerators.

;ut of the 3=C other ma/or reasons low demand 33C4 and lesser capacity

refrigerators 3-C4 got the maimum share.

9espite of all the above there are even ma/or number of retailers who blame it to the

unfulfilled promises from the company professionals.

22*,URE*,URE9F9F

22*,URE*,URE9999

A&&ro@imte s"e of the reti"er

0

1020

30

-0

50

=0

>0

:0

0

100

0.5 to 2 3 to 5 = to 10 ore #han 10


56/84

A&&ro@imte s"e of the reti"er

0.5 to 2

:C

3 to 5

-=C= to 10

2:C

ore #han 101:C

#he sample si$e shows that maimum portion around -= C4 of the retailers whose

sale are between 3 to 5 crates daily and only : C are the ones who are selling less

that two crates.

22*,URE*,URE9:9:

0o% the reti""er gets dis&"y mteri" from the

com&ny O

0

10

20

30

-0

50

=0

>0

Schemes !ift Sharing A 9raft ;ther

22*,URE*,URE9;9;


57/84

0o% the reti""er gets dis&"y mteri" from the

com&ny

Schemes

33C

!ift-0C

Sharing A 9raft

21C

;ther

=C

#he sample si$e gives us the brief idea about the pattern of distribution of

merchandising assets by the companies. ost of the retailers around >3C4 are

getting the display material through different schemes or as the gifts.


58/84

22*,URE*,URE9=9=

+r#e t Demnd of different &c#ings of Soft8Drin#s

2lt

2=C

1lt

>C

500ml

1-C300ml

23C

200ml

30C 2lt

1lt

500ml

300ml

200ml

#his gives us an indication, where the better prospects lies. n which particular type

of packing little innovation can do wonders. #his provides us with an idea where we

should concentrate.

#he sample si$e shows that there is huge demand of 2lt pack 2=C4 and 200ml

bottles 30C4.

300ml bottles with 23C shares the 3rdposition and 500ml. Shares the -thposition of

the demand total demand with the market demand of 1-C

22*,URE*,URE9>9>

0

100

200

300

-00

500

"epsi *oca*ola #humsup

S1

+r#et Demnd of Softdrin# / Co" 1

"epsi

*oca*ola

#humsup


59/84

22*,URE*,URE9?9?

+r#et Demnd of Softdrin# / Co" 1

"epsi

3C

*oca*ola3>C

#humsup

2-C

"epsi

*oca*ola

#humsup

Sample si$e shows the comparison between the market demands of each of coladrink.

"epsi is on the top, shares the demand of 3C from the market.

*oca*ola seconds with the shares of the demand of 3C from the market beating#humps up with the remaining 2-C

22*,URE*,URE9I9I

irinda;, 2=0

6anta, 2:5

2-0

250

2=0

2>0

2:0

20

irinda; 6anta

S1

+r#et Demnd of Softdrin# / Ornge 1


60/84

22*,URE*,URE9H9H

+r#et Demnd of Softdrin# / Ornge 1

irinda;

-:C

6anta

52C

Sample si$e shows the comparison between the market demands of each of ;range

drink.

irinda and 6anta are almost head to head with -:C and 52C market demand.

#hough 6anta is having -C more share than irinda ;range.

22*,URE*,URE:F:F

+r#et Demnd of Softdrin# / 'emon 1

irinda@2>C

@imca

31C

ountain 9ew2:C

Sprite

C

> Jp5C


61/84

22*,URE*,URE:9:9

irinda@, >35

@imca, :=5ountain 9ew,

>>0 Sprite, 235

> Jp, 123

0

200

400

600

800

1000

irinda@ @imca ountain

9ew

Sprite > Jp

S1

+r#et Demnd of Softdrin# / 'emon 1

Sample si$e shows the comparison between the market demands of each of @emon

drinks available in the market

@imca in the lemon flavour with the market demand share of 31C is beating all thegiants.

"epsi up are lacking behind with /ust the share of 1-C.


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22*,URE*,URE::::

22*,URE*,URE:;:;

+r#et Demnd of Softdrin# / +ngo 1

Slice, 300

a$$a, 20

Sample si$e shows the comparison between the market demands of each of ango

drinks available in the market Slice and a$$a is almost head to head with 52C and

-:C market demand. #hough Slice is having -C more share than a$$a.

SUR6EY REPORT CONDUCTED .Y *ND*6*DUA' A,ENCY$8

2OR T0E +ONT0 +AR)S

APR*' ;


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*oca *ola ndia has been working on ('9 (ight 'ecution 9aily4 since 200=. n "atna

(egion ('9 was introduced in 6' 200=. ('9 is an integration of Sales anagement M

arketing 'ecution "lan. y this, company not only has been increasing its Sales M

arket Shares but it also has proved as a media for the company to come closer to its

*ustomers M Shoppers.

#his case of *oca *ola *ompany is related to the "atna (egion where the company is the

leader in the both the arket Shares M the Sales Nolume. )fter ('9 was introduced in

"atna, the *ompany continuously tried to improve its ('9 Score *ard.

ts ('9 Score *ard shown in )pril 200:, in "atna (egion especially 'hibition (oad,

"irmohani, !oriatoli M Iew arket4 was 3-.5C )ppro4, which was not near to the

Standard i.e. 50, fied for the month.

#he Standard for the month ay was fied =0 by the Sales anagement for this (egion.

ut the result was negative for this month i.e. 22.3Cappro4. #he ('9 Score declined by

=3C in this month as it was fied by sales management.

t put etra pressure on Sales 'ecution #eam to uplift this Score in the month of Oune. So,

it was the challenge for the Sales 'ecution 6orce to regain its prestige but still they didn


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OPERAT*N, ,ROUP$8

#he ;perating !roup of *oca*ola. #he map is segmented into *oca *ola ;perating

!roupsQ )frica, 'urasia, 'uropean Jnion, @atin )merica, Iorth )merica, "acific, ottlingnvestments. *ertain prior year amounts have been reclassified to conform to the current

year presentation.

54 n 200>, *oca *ola adopted 6inancial )ccounting Standards oard 6)S4

nterpretation Io. -:, &)ccounting for Jncertainty in ncome #aes& and recorded an

approimate R=5 million increase in accrued income taes in their consolidated balance

sheet for unrecogni$ed ta benefits, which was accounted for as a cumulative effect

ad/ustment to the Oanuary 1, 200> balance of reinvested earnings.

=4 n 200=, *oca *ola adopted Statement of 6inancial )ccounting Standards S6)S4

Io.15:, &'mployersB )ccounting for 9efined enefit "ension and ;ther "ostretirement

"lans an amendment of 6)S Statements Io. :>, ::, 10=, and 132(4.&

>4 *oca *ola adopted 6)S Staff "osition 6S"4 Io. 102, &)ccounting and 9isclosure

!uidance for the 6oreign 'arnings (epatriation "rovision within the )merican Oobs

*reation )ct of 200-& in 200-. 6S" Io. 102 allowed the *ompany to record the ta

epense associated with the repatriation of foreign earnings in 2005 when the previously

unremitted foreign earnings were actually repatriated.

:4 *oca *ola adopted 6)S nterpretation Io. -=(4, &*onsolidation of Nariable nterest

'ntities,& effective )pril 2, 200-.

DATA CO''ECT*ON AND RE'*A.*'*TY O2 DATA$8

6or this research work there is need of both "rimary M Secondary data. Dere have

taken the "rimary data which was collected from the *ustomers.

#he secondary data are those, which have already been collected by someone else for

other purpose. #he data, which are secondary in the hands of one, may be primary for

others. Dere the Secondary data is collected from the company


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ANA'Y*N, T0E DATA$8

#he net step in the research process is to etract pertinent findings from the data. #he

researcher tabulates the data and uses various financial tools to assess the financial

soundness of the company.

Reserch instrument$8

(esearcher used uestionnaire as his instrument for conducting the survey.

Sm&"ing P"n

14 Sampling unit (etailers

24 Sampling procedure Simple (andom Sampling "rocedure.

Contct +ethod

(esearcher personally contacted the retailers.

%here f Y 6eed ack Delp in *ontrolling the Sub System to %hich it is transmitted 4

6f Y 6eed 6orward serves the vital function of providing criteria for evaluation4

+AR)ET*N, STRATE,*ES$8

91 Coc8Co" s"es c"ub$8

#his club is for the retailers. n this approach retailers are given some points once in a

month depending upon how they are using the display material provided by the

company to them. #his material consists of 6ridges, 9"S oards, !low Sign oards,

9isplay ottles 500ml. 1lt. 2lt, *ommodity "acks, Stands, "osters etc. 9epending

upon these points retailers are rewarded by certain gifts from the company.

#he retailers are participating in these schemes curiously. ut few of the retailers found

furious and angry because they had lost the points because of miscommunication or

lack of guidance. #herefore they need some kind of guidance from the company. t

would be a better idea that our salesman who are distributing the beverages to the

retailers can be euipped by the appropriate training so that they can guide the retailers

about how to use their display material to 100C of their strength and able to tell aboutthe new schemes convincingly.


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:1 Schemes$8

Dindustan everages ndia comes out with the schemes on their different products many

times in a year. ost of these schemes are made to benefit the retailers. Some of the

schemes are as followsQ

1 bottle of 2lt. free with one 2lt bottle pack.

1 bottle of 1lt. free with one 1lt bottle pack.

2 bottles of 500ml free with one 500ml bottle pack.

= bottles of +inley free with one pack of +inley.

#hese schemes keep on changing depending upon the stock. everages companies are

giving these schemes despite of acute shortage of soft drink in every segment to meet the

competition, to make sure the availability their brands and sometimes to satisfy and benefit

the retailers and the end consumers.

;1 Ad!ertising$8

#hrough the consumers survey it has been proved that the #.N. commercials and sinages

affect the consumer buying behaviour by approimately >0C. ay be only *ococola. is

investing huge finances in the #.N. commercials and other sinages, big names of ndian film

industries and sports hero


67/84

*ocacola is tying up with different chains of restaurants and fast food centers to

promote the *ocacola and its other brands like @imca, Sprite, aa$a etc. these

restaurants are authori$ed to keep and use the merchandising assets of "epsi. Jsually

these kinds of restaurants and fast food chains are in contract with the "epsi *o., so

that they cannot promote any other brand.

=1 +erchndising ssets$8

*oca*ola also try to promote their brands by providing their retailers and dealers some

display items. Some of such items are as followsQ

9- 6ridges

:- *oca*olaAa$$a stands;- 9isplay bottles

4. "osters

*oca*ola provide the above things to the retailers to use them in promoting companies

brands and products, and provide refrigerators to the retailers in the hope that these

retailers only use these assets in promoting the *oca*ola


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*NTRODUCT*ON O2 REPORT$8

'very year with the start of summers in ndia the real race to uench the thirst of the

consumers begins in the soft drink beverages industry. 'very year millions participate in it,

either in the hot sun or sitting at home watching their, sipping the soft drink and watchingthe newly launched advertisements.

'ime n "emoni 'imc$8

Soft drinks manufacturers in ndia face a number of ma/or problems, such as distribution

difficulties. )ccess to the 500,000 villages is limited due to the poor road network.

nconsistent ta policies, the prevalence of duplicates, hefty packaging costs and ndiaBs

seasonal nature are other factors holding back growth.

9uring Iew Kear the two of the largest soft drink giants in ndia "epsi and *oca*ola start

eperiments with products, packages, flavors and prices in an effort to boost their market

share. 6or this the biggies make huge investments in terms of advertising, setting up new

and more productive and moderni$ed plants, improving the distribution network to get better

reach to the end consumer.

;ne of the areas where these companies are making huge investments is merchandising.

#his is the area where companies try to get the maimum display in the consumer


69/84

"rices of D**"@ products communicated in a clear M visible manner.

9"SA6le oardA!low Sign oard, 6lange, or (oad Standee, at least 1, should be in

a proper condition.

)riel obile Danger with at least - mobiles displayed at stores front in *onvenience

Stores.

;A9rinking Shot *ommunication present at each store.

#able #op display unitADanging (ack, at least 1 should be pure M should be at least

50C charged in *onvenience Stores.

Self 9isplay (ack in which minimum : facings of any "'# displayed M visible in

!rocery.

(ack should be pure M should be at least 50C full in !rocery.

*ombo *ommunication should be present in 'M9.

randed enu *ards with +; cola4 everages enu at least 5 enu *ards4Aenu

oard at least 14 with +; beverages listing.

OR,AN*AT*ONA' STRUCTUREQ

Coc Co" in *ndi


70/84

S4OT ANA'YS*S


71/84

>- S4OT ANA'YS*S

STREN,T0S$8

*oca *ola competitive strengths include leading brands with a high level of consumer

acceptance, a worldwide network of bottlers M distributors of company products,

sophisticated marketing capabilitiesP M a talented group of dedicated associates.

*oke *ompany has a good market reputation and a strong distribution network.

*oke is having a multi brand strategy ad is looking for a great volume opportunity in

ndia.

*oke is presently no. 1 player in ndian *arbonated soft drinks market.

*oke was born 11 year before "epsi in 1:>4 ad a century later still maintains that

pioneering least.

"epsi and coke both have good brand image.

4EA)NESS$8

Sales of *oca *ola readytodrink nonalcoholic beverages are somewhat seasonal, with

the second M third calendar uarters accounting for highest sales volumes. #he volume ofsales in the beverages business may be affected by weather conditions.

*oke has less no. of retailers

@ess force it has less no. Dave owned bottling plant.

t has not planned for setting up of any new plants where their competitor has

planned to set up several new plants.


72/84

OPPORTUN*TY$8

;ver the net several years Soft 9rinks ndustry


73/84

9espite the possible efforts in conducting the research, there were some unavoidable

situations, which limited the scope of the pro/ect.

*onsidering the population, the sample taken for present study seems small and

hence further investigation may be reuired.

#he sample taken for study was not of eual distribution so a comparative study

cannot be made.

Some of the retailers were noncooperative in giving information, which hampered

the actual calculation.

#ime available for research was very short so certain aspects have been overlooked.

(etailers were hesitant to provide the complete information due to fear of misuse of

information.

(espondents may sometimes misinterpret the uestions, leading to a different

answer.


74/84

CONC'US*ONCONC'US*ON


75/84

?-?- CONC'US*ONCONC'US*ON

)fter conducting the research, (esearcher found that there are two categories of retailers.

#he first one is of those retailers, which /ust want to increase their assets, for them the sale

doesn


76/84

#his case of *oca *ola *ompany is related to the "atna (egion where the company

is the leader in the both the arket Shares M the Sales Nolume. )fter ('9 was

introduced in "atna, the *ompany continuously tried to improve its ('9 Score *ard.

ost of the respondents prefer to take the beverage on the basis of taste.

;ut of the whole lot of the *oca *ola products most of the people prefer to take

aa$a in @arge uantities.

a/ority of the people know the beverages of *oca *ola thru advertisements.

t is heartening to notice that the availability of the *oca *ola "roduct is ecellent.

#he *oca *ola products are always found in its optimum condition in which it is

epected to be.

t has come to my notice that most of the customers are unsatisfied with the price of

the beverages.

)lmost all the respondents take the beverages on the basis of personal /udgment.

)lso it is good to observe that most of the people are aware of the promotional

schemes offered by the *ompany.

)ll the products in the Nisicooler are kept in a systematic way*@;O4.

t has been observed that most of the people visuali$e the activation boards properly

in front of the ;utlets.


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RECO++ENDAT*ONS

K

SU,,EST*ON


78/84

I- RECO++ENDAT*ONS K SU,,EST*ONS

1. *ompany should do something to meet its demand in the market. ecause there is an

acute shortage of *oca*ola 2@ts party pack and tin pack because of the shortage, *oca

*ola is not only loosing the present market share but also providing way to the rivals. 6or

this either plant si$e can be epanded or some more production euipments can be

installed.

2. Since the market capacity is huge salesman needs time at every retailer to satisfy him

and tell him about the different products, packaging, schemes etc. it


79/84

>. Schemes should be transparent and made clear to the retailers.

:. )s maimum number of retailers are selling around 3 to 5 crates daily. ;ur schemes

should be revolving around this percentage only. )nd while formatting the different

schemes this should be kept in mind.

. 6or this salesman can be provided with some kind of guidanceA training, so that they

can clear the ueries of the customers about the different schemesA proposals

10. (etailer benefit schemes, which the company launches time by time during the whole

year, must be made clear to all the retailers.

11. *ustomers can be informed about the schemes through the broachers.

12. roachers can be distributed to all the retailers for the schemes that are being

launched once in a year. )nd for the daily schemes which get change on daily bases and

which depends on the stock availability providing details about the dayBs schemesA after a

paperA pamphlet on different products can be sticked to the delivery van signed by the )S

or anybody authori$ed. So that every retailer if neededA reuired can verify himself about

the daily schemes.

13. *ompany professionals should visit the field more regularly and they must try to visit

every retailer at least once in a month.

1-. ) proper trust and relationship building process is reuired with the retailers, which

need to be worked on.

15. )bove figures shows the market demand comparison between the different products

of all the flavors available in the market. %hich show that we can gain market share through

*oca*ola


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demand of these packing

1>. ;ther products and packing like Sprite and 300 ml. %hose demand is going down

reuire proper attention and strategy.

1:. ost of the respondents wants to increase the flavours of the *oca *ola oni$ed

beverages as they have been consuming the same flavor over a period of time.

1. "romotion and promotional schemes need to be propagated in the rural areas so as to

tap the unsaid and unclaimed potential of the rural life and habitat.

20. %ell, would advise the *ompany to reduce the price affied to each and very of

beverages so that all the classes and categories of the people can have the pleasure of

drinking the *oca *ola product.


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APPEND*5


82/84

H- APPEND*5

Nme of the S0OP QQQQQQQQQQQQQQ Te" No-QQQQQQQQQQQQQQQQQQ

ADDRESS QQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQQ

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RAN)*N,ACCORD*N,TO6*S*.*'*TY

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1 2 3

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STREN,T0 ).SD;(#)!' E F. '"#K"(;@'E F*. (('!J@)(#K;6#D'S)@'S)I E F 9. ;#D'( E F


83/84

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1. 4 (I9); 4 6)I#)

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9. 4 S@*' 4 ))T)

Thn#s

*f you 0!e Any Suggestion/ 4

Signture

9F-.*.'*O,RAP0Y


84/84

Nme of the boo#s used for the reference nd their uthors-

91- )ot"er3 Phi"i&3 +r#eting +ngement3 De"hi3 Person eduction P!t- 'td-3

:FF

coca cola consumer buying behaviour

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