TABLE OF CONTENTS: -

Introduction of the beverage industry

Beverage industries major group structure & performance

Alcoholic drinks market analysis

Industry performance

Soft drink Industry in India

Industry growth

Industry analysis

Analysis of marketing mix elements in soft drink industry

Analysis of 5 forces in soft drink industry

PEST Analysis

Brief Introduction about Coca-cola

Origins of coca-cola trademark

How coca-cola is made

Coca-cola in India

Growth strategy of coca-cola

Products of coca-cola

Marketing Department of Coca-Cola

Core concepts of marketing

Societal marketing concept

Analysis of marketing mix elements

SWOT Analysis

Competition with Pepsi

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Introduction of the Beverage Industry: -

The Beverage Industries Major Group consists of four different industries, soft drink

manufacturers, distillers, brewers and wineries. Apart from the weather and other

seasonal impacts on sales, which all four industries share, the four sub-groups can be

considered (for analytical purposes) as operating in two markets. Certain observations

apply to the soft drink industry by itself, whereas the three alcoholic beverage industries -

breweries, distilleries and wineries - share some other characteristics.

Consumption of soft drinks is increasing . . .

The soft drink industry is a regularly expanding but very competitive industry in Canada.

The quantity sold is regularly trending upwards. Per capita consumption of soft drinks

was 114 liters in 1998, double that of 1972.Meanwhile, the value of sales grows

approximately at the same rate as the volume sold, as competition keeps price increases

minimal.

Whereas alcoholic beverage sales are decreasing.

Consumption of alcoholic beverages, on the other hand, is in a longer-range downward

trend because of taxation, and health and social considerations. Canadians over 15 years

of age drank on average 94 liters of alcoholic beverages in 1998, down from 128 litres in

1972. And, although sales quantities are declining, price increases maintain a steady

growth in value of sales. Wines, a 6% segment of the total beverage market, have

recently seen slow increases in per capita consumption.

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Beverage Industries Major Group structure and performance

The largest among the four beverage industries, in terms of the value of shipments, is the

Brewery Products Industry, which usually accounts for close to half of the total major

group sales. The Soft Drink Industry represents more than a third of the total and the

Distillery Products Industry and the Wine Industry, with 11% and 6% respectively, ship

the remainder. These proportions have been fairly stable over the years with distillery

products slightly decreasing and soft drinks slightly increasing.

Information from the Annual Survey of Manufacturers shows the Beverage Industries

experiencing an overall increase in growth for 1997. It was a seventh consecutive year of

expansion that followed two years of decline in 1989 and 1990. Although the rate had

gradually dwindled from 9% in 1992 to 1% in 1996, growth was maintained during these

years and 1997 saw a stronger up-turn again of 5%. Shipments reached $7.2 billion in

1997, up 28% from the 1990 low of $5.6 billion.

In terms of Gross Domestic Product Beverage Industries expanded marginally by 4.2% in

1997, an increase well below that of 6.5% for all manufacturing industries.

With 1.7% of all manufacturing shipments and 2.6% of total manufacturing GDP,

Beverages is a medium sized processing industry. The proportion of value added to total

shipments for the major group was a relatively high 59% in 1997, compared to the

average for all manufacturing, which stood at 40%.

Investment is recovering

A low point in the beverage industries’ shipments of 1990 coincided with reduced levels

of capacity utilization in the following year. After falling to 66% in 1991, the capacity

utilization rate recovered and has fluctuated since 1993 between 80 and 83%.Until 1997,

when it stood at 82%, it did not advance sufficiently to prompt increased investment in

new assets.

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After staying at around $300 million for several years, capital expenditures dropped to

$235 million in 1996. In 1997, capital expenditures went back up to $296 million and are

estimated to continue upward in 1998, with preliminary data indicating a strong level of

$428 million.

Employment is declining . . .

The Beverage Industries’ labor force is relatively small. Wages are a low 7% of

shipments for the major group compared to 11% for total manufacturing. The major

group’s manufacturing employment has fallen by 33% since 1988, when it was more than

17,000, to below 12,000 in 1997. The one-year drop in 1997 was 6% while employment

for all manufacturing gained 4%. Reasons for a declining work force in these industries

include an improved output per worker, the falling demand for alcoholic beverages and a

decreasing number of conventional breweries. The dismantling of inter-provincial trade

barriers that began in 1991 and the resulting economies of scale made the latter possible.

The larger beverage producers, which are 23 out of the total 199 industry establishments

with at least 200 employees, include a relatively higher proportion of salaried personnel

in their work forces. This group ships 60% of the total beverage product, and while they

employ only 54% of the production workers in the industry, 82% of salaried employment

is here. These include distribution, sales, advertising and administrative staffs.

But output per worker on the increase

While declining in numbers, the workforce in the Beverage Industries was paid a

relatively high wage rate and had a high rate of output. After dropping in 1993, the

average hourly wage rate grew by 3% in each of the two following years and by 5% in

1996. Although the hourly rate fell by 1% to $21 in 1997, it was still well above the

average hourly rate of $17 for all manufacturing.

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Production per worker saw a fifth year of increase and reached $615,000, up 36% from

$452,000 in 1991. Due to the highly automated processes that the industry employs, this

rate is one of the higher ones among manufacturing industries where the average rate for

all industries was $309,000 in 1997. With production per worker improvements regularly

outrunning wage rate advances, unit labor cost (wages/production) has regularly

improved. It has seen a total reduction of 17% since 1991.

The Beverage Industries can be seen as supplying two markets with different

characteristics, one for soft drinks and one for alcoholic beverages. In the recent past, soft

drinks has been expanding while competition kept prices low. The second market, for

alcoholic beverages, is in a decline but price increases are maintaining sales levels. The

exception to this may become wines. In this minor market segment recent increases in

consumption appear to be continuing.

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Alcoholic drinks market analysis:-

Alcoholic drinks market analysis provides the complete strategic picture of the latest trends in the beer, wine and spirits industries

Our market research reports for key product sectors give a detailed insight into on and off-trade channel developments; volume market shares; new products and licensee and distributor relationships.

Invaluable company information is provided in our profiles of the top industry players.Wine industry trends investigated include the battle between new and old world wines and the impact of new packaging. The globalization of brands is examined in our beer industry analysis, while national specialty breakdowns are incorporated into our spirits data. Consumer market research pinpoints what is influencing purchasing decisions and measures expenditure levels. In-depth research into supplier and consumer dynamics lays out all the key pushes and pulls driving the international drinks market.

FABs bubbled and wine uncorked as penetration increases

FABs (flavored alcoholic beverages) recorded dramatic growth over the review period, emerging as the fastest growing sector within the Indian alcoholic drinks market in both volume and value terms, albeit from a small sales base. FABs effectively meet consumers' desire for lower alcohol content drinks, flavor variations, image and individuality, especially among women. Effective marketing campaigns by Bacardi-Martini have found favor among women and the younger generation, who look to these alcoholic beverages as new status symbols.

The growing wine culture and the increasing popularity of white spirits also led to sales of alcoholic beverages growing at robust rates over the review period. Moving away from the leading cities within each region, manufacturers are increasingly focusing on the second tier cities, with considerable success. Growth has been driven by a combination of a more relaxed attitude towards alcohol consumption, Westernisation and exposure to other foreign cultures, and growing affluence, supported by new product launches, intense advertising and promotional campaigns.

The established sectors of beer and spirits still achieved the highest volume sales in 2004, with Indian whisky remaining the most popular alcoholic drink amongst the older population, whilst beer grew in popularity amongst the younger age groups. In beer, smaller pack sizes of 250ml and 330ml were instrumental in stimulating product trials and repeat purchases.

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Value growth surges ahead due to upgrading in spirits

Although India is a country known for its price sensitivity, value sales of alcoholic drinks grew more strongly in value terms than volume terms over the review period, due to a combination of price rises and trading up by consumers. More specifically, there were price hikes within spirits – the dominant sector – as a result of the failure of the sugarcane crop in several parts of the country, leading to a shortage of the molasses used to make potable alcohol. Further, the continued strong performance of the higher priced wines imported from Australia and Chile helped drive value growth.

Total volume growth was held in check due to the marginal growth rates registered by the large and relatively mature drinks such as Indian whiskies.

UB Group's leadership sails on amidst a concentrated operating environment

Local manufacturer UB Group continued to lead sales within spirits and beer in 2003. International labels, despite their financial might and superior global marketing experience, have been unable to challenge the position of the company, with its long list of subsidiaries, including Millennium Alcobev, Triumph Distillers & Vintners, Herbertsons Ltd, United Breweries and McDowell & Co Ltd. The company owns the top selling brands in beer and spirits, Kingfisher and Bagpiper, respectively.

However, the merger of SABMiller and the brewing business of Shaw Wallace in 2003 created ripples, as United Breweries had to engage in a series of initiatives to protect its position in the market, and trade experts are predicting intense market rivalry during the forecast period. The industry was somewhat quieter in 2004 after the flurry of mergers and acquisitions of non-profitable breweries and distillers in 2002 and 2003.

Combined, UB Group and SABMiller accounted for over 50% and 74% of volume sales

in beer and spirits, respectively, in 2003.

Cheers and toasts to a rosy drinking culture

In tandem with the continued progress of the Indian economy, and rising affluence and

purchasing power, alcoholic drinks are predicted to record a compound annual growth

rate (CAGR) of 5% in constant value terms between 2004 and 2009. The alcoholic drinks

market is expected to benefit from increased consumer interest, arising from new

launches, shrewd marketing, smaller consumer pack sizes of 180ml, 250ml and 330ml,

and a continued review of the tax structure of the domestic alcoholic industry.

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With India's 2001 inclusion within the WTO, the 2003 merger of SABMiller and Shaw

Wallace, and now the potential sale of the Shaw Wallace spirits business, there is

expected to be heightened market competition between UB Group and Shaw Wallace. In

addition, with the annual reduction in customs duties, international labels of beer and

spirits are expected to flood the Indian market and provide alternative choices for

consumers.

FABs, vodka and wine are expected to be the star performers due to their trendy, up

market image and, in the case of wine, purported health benefits, while beer and spirits

(such as Indian whiskies, rum and brandy) will still lead sales in volume terms.

Industry performance

Among the component industries of the Beverages major group, three industries

contributed to the overall growth in major group sales, while one saw sales fall. Major

group expansion of 5% was caused by sales increases of 7% in Soft Drinks, 5% in Beer

and 11% in Wine. Distillery sales decreased by 5%.

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Soft Drink Industry

In the Soft Drink Industry demand has been steadily rising. Shipments for 1997 were up

60% from 1990 and with more than one third of the major group's shipments; this

industry accounted for slightly less than half of its growth. However, competition has

kept prices down and with a flat price index, increases in the value of shipments have

been similar to its real growth.

As with soft drink quantities, value of sales has continued to increase, reaching $1.9

billion in 1997. With price movement low, national brands have endeavoured to regain

market share (which had been lost earlier to private labels) by stepping up advertising,

improving packaging and shelf space agreements with grocery chains. Among soft drink

products, low calorie commodities have been levelling off at slightly over 15% of total

manufactured shipments in recent years. "New age" drinks have not lived up to their

initial promise.

The Soft drink market is continuous drinking. The people are drinking more of the drink,

and new beverages are confirmously introduce the market place. Soft drinks contain

chemicals either natural or synthetic during 2000-01; people were “ drinking” through the

soft drink 20.6 million tons of chemicals around the world. Merely – 4 kg per capita, with

a growth of the about 20% towards the end of the decades. This is a large industry,

having a significance impact on several factor of chemical manufacturing.

Drinking soft drinks not only fulfills physiological needs but also provide the social

satisfaction as well. It is surprising that this market is merely a hundred years old markets

is a complex one. A few multinational producer are aggressively active along site

numerous local producers. Drinking habit vary around the world. From an annual

consumption of one or two liters per countries have different attitudes forwards the safely

aspect clearly to the use of different activities. Local economic consideration brings

government to issue regulation for using certain rarifies. And beyond all these factor, the

market in develops countries seems to be bored with the traditional be veranges, and new

types of soft drinks are entering in the market.

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Soft drinks are divides in to two categories:-

Carbonated

Non-carbonated

While cola, lemon and orange are carbonated drinks. Mango flavored drinks

come under non-carbonated drinks.

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Soft drinks in India: -

Slower growth compared to 2002

Sales of soft drinks in India witnessed another year of strong growth in 2003, with 12% volume growth to reach over 3.6 billion liters. However, the growth rate marked a slowdown from just below 17% in 2002. This poorer performance stemmed mainly from slower growth within carbonates and a stabilization in sales of the well developed concentrates sector. Bottled water and 100% juices continued to expand at robust rates, appealing to the health conscious, while sales of functional drinks and RTD drinks continued to remain at negligible levels, despite the introduction of new products.

Across all sectors, there were a considerable number of new product, variant and flavour launches in 2002 and 2003, some of which have made good progress while others, such as Pepsi Aha!, flopped. Fruit juice manufacturers were particularly active in terms of new launches.

Controversies galore

in 2003, reported high levels of pesticides, above those permitted by the European Union affected both carbonates and bottled water. While bottled water escaped relatively unscathed by the findings of the Center for Science and Environment, prices for carbonates plunged and dragged down 2003 value growth. This was exceptionally disheartening to cola manufacturers, who were had benefited from strong sales due to the hot summer period in May-July.

While the central government has since negated the findings of the Indian environmental group, both Coca-Cola India and PepsiCo India Holdings are still struggling to regain consumer confidence and market expenditure. On a positive note, the carbonates controversy generated strong consumer interest in fruit/vegetable juice, as a healthy, albeit more expensive alternative, stimulating market value growth.

Coca-Cola shakes off PepsiCo's challenge

There were no changes in market positions within the Indian soft drinks market in 2002, although there were marginal gains and losses in market volume shares. Despite the strong challenge posed by PepsiCo India Holdings through a combination of marketing, promotional activities and new launches, Coca-Cola managed to maintain its percentage volume almost unchanged in 2002. Continued rural focus, smaller pack sizes, price discounts applied at an appropriate time and distribution expansion allowed the multinational company to retain its lead. More importantly, the company was able to gain strength within the fast expanding bottled water sector.

While Parle Bisleri remained the third largest manufacturer, the company witnessed significant share erosion in 2002 due to an absence of marketing and promotional

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initiatives. More importantly, the company's key interest lies in bottled water, and its Bisleri brand suffered significantly as it was cited as one of the major brands with a high pesticide contamination.

Promising outlook

There is considerable further growth potential for the Indian soft drinks market, given that total per capita consumption in 2003 was at a very low 3.5 litres/year. The key barrier to growth in volume sales for soft drinks has been the low disposable income of the majority of the population. Further, there is a very vibrant unorganised channel that exists alongside the more expensive organised channel.

With the assumption that the Indian economy continues to maintain its encouraging GDP growth year on year, soft drinks are expected to realise their immense potential, with more frequent consumption as well as the broader appeal of more niche soft drinks. The associated rise in purchasing power, product awareness and health consciousness will further contribute to market growth. As such, soft drinks are predicted to enjoy a 12% volume CAGR over the forecast period.

Industry Growth:

Growth in the soft drink industry can be increased by

consumption per individual and by population growth. Total consumption in the

industry over the last two decades has risen by a 6.5 percent compound annual growth

rate. Since the population of the US is growing at only about 2 percent a year, the

strongest potential for growth in the U.S.industry is through per-capita growth.

Industry analysis view the again population and the approach

of the point of saturation in per-capita consumption as the two main issues

influencing the prospects for future growth. Some analysts have that these factors

may even reverse the industry’s historical growth rate.

The 15-to-24 and 25-to-34-years-old age groups have been the

heaviest pop drinkers. These heavy consumption groups are becoming a smaller

percentage of the total population, while older groups, which have historically

consumed fewer soft drinks, will grow rapidly. The real question is whether the

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present younger-age, heavy-consumption groups will retain their consumption

patterns, as they get older. Changing consumer preferences are expected to influence

the sources of growth as consumers switch to healthier products.

Industry Analysis:

Two main competitors, The Coca Cola Company and Pepsi-cola, dominate the

soft drink company. Both depend on a network of bottling companies to distribute

their bottle soft drinks. Coca-cola uses its own network of wholesalers for its fountain

syrup distribution, while Pepsi distributes its fountain syrup through its bottlers.

A principal concern of the industry is long-term growth potential and how this

growth is affected by changing population demographics, per-capita saturation, and

changing consumer preferences. Changes in these variables have caused changes in

the channels of distribution that are likely to change the cost structure of the

company.

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Analysis of marketing mix elements in soft drink industry:-

Product:

Brand loyalty in the soft drink industry is not a thing of the past, but

manufacturers can no longer depend on a large, stable base of die-hard consumers to

support their products. Consumers used to be “true to their soft drink” no matter what.

But now, because of fierce competition for market share, the soft drink industry is over

segmented, and the products differ so slightly that consumers are confused. Many

consumers today perceive the soft drink as a commodity than a soda. This situation

creates enormous problems for PepsiCo, Coca-Cola, and the other competitors in the

industry who continually seek to differentiate their products.

Price:

Pricing has also contributed to the decline in brand loyalty. Price competition is

now the norm in the industry, and more than 50 percent of soft drink purchases are made

on impulse. Due to low prices in general, frequent promotions by distributions, and the

impulse nature of the purchasing decision, many consumers today buy the soft drink with

the lowest prices.

Place:

The standardization of production and distribution methods used by competitors

contributes to the lack of differentiation in the industry as well. The cycle begins when

the syrup is formulated; it progresses as the syrup is shipped to bottlers for conversion

into soft drinks; and with the delivery of the product to retailers. Rather than establishing

their own independent systems, smaller producers of soft drinks (Like Dr Pepper)

contract with Pepsi-Cola or Coca-Cola distributors to bottle, store, and distribute their

products. Thus product differentiation based upon production and distribution methods is

virtually nonexistent.

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Promotion:

Advertising and promotion are the most important tools used by soft drink

manufacturers to distinguish their products. Competitors in the industry rely upon

endorsements by famous people and reminder advertising to create and reinforce the

image they want their products to have Emotional appeals and identification tactics are

used to increase brand loyalty. Slogan and ad theme changes reflects Pepsi’s, and Coke’s,

desire to adjust to even slight shifts inn consumer demographics, attitudes, values, likes,

and dislikes. Since advertising costs are so high, they are monitored closely, and

promotions by local bottlers are encouraged and subsidized by the manufacturer.

Brief Introduction of Coca-cola

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The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886,

our Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic

beverage concentrates and syrups, used to produce nearly 400 beverage brands. Our

corporate headquarters are in Atlanta, with local operations in over 200 countries around the

world.

ORIGINS OF THE 'COCA-COLA' TRADEMARK

Soon after John S Pemberton prepared the first batch of syrup of 'Coca-Cola' on May 8, 1886

his friend and bookkeeper, F.M Robinson chose an alliterative name. He wrote the words in

the now familiar flowing "Spencerian "script and 'Coca-Cola' was registered officially in the

US Patent and Trademark Office in 1893.

Early advertising tried to stop people calling the product 'Coke'. They urged people to "ask

for 'Coca-Cola' by its full name; nicknames encourage substitution" but it didn't work. People

kept asking for 'Coke'. In 1941, the Company started advertising as 'Coke' and 'Coca-Cola'. In

1945 'Coke' was registered as a trademark.

As peoples' lifestyles changed they demanded different soft drinks. For example, consumers

might want a drink containing sugar and caffeine in the morning, a diet soft drink for lunch

and a caffeine-free drink at night. This market segmentation, created an opportunity for more

'Coca-Cola' brand drinks.

The extension of the 'Coca-Cola' name began in 1982 with the introduction of 'diet Coke'.

'diet Coke' quickly became the number one selling low calorie soft drink in the world. In

1983, caffeine-free versions of 'Coke' and 'diet Coke' were introduced. With these extensions,

mega brand 'Coca-Cola' has more products for people to enjoy more often and on more

occasions than ever before.

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HOW 'COCA-COLA' IS MADE

'Coca-Cola' begins with the making of simple syrup - mixture of sugar and purified water.

The water is filtered and purified at the plant to destroy any microorganisms and to remove

particles from the water. Quality control technicians test the water frequently to ensure that it is

clean and pure before the syrup is made. The syrup is also thoroughly filtered.

The checking and testing continues. Sophisticated equipment helps technicians test everything

from the condition of each package to details of the carbonation level, taste and syrup content.

'Coca-Cola' concentrate is added to the syrup. The flavors base for 'Coca-Cola' is still one of the

world's great trade secrets. Technicians carefully sample, check and record the blend of each

batch of syrup. After blending it is ready to have the bubbles, or carbonation, added.

An army of glass, PET (Polyethylene Terepthalate) bottles and aluminum cans is now ready to

be filled with the finished product. The containers themselves go through a thorough test first -

they're washed, rinsed and inspected electronically and visually. Only then are they ready for the

world's most popular soft drink.

The conveyor lines up container after container to be filled automatically at high speed. This way

the exact amount is filled and the automatic sealing of each container guarantees complete

hygiene.

After warming, the bottles pass on conveyors to the labeling machine and then, like the pre-

labeled cans, are coded and packed into cartons and taken to the warehouse ready for dispatch to

the thousands of outlets which stock 'Coca-Cola'.

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COCA-COLA IN INDIA

Coca-cola the world favorites soft drinks, returned to India in oct-93 with its launch in Agra. The

leading producer and marketers of soft drink in India, coca-cola India’s extensive bottling more

than 50 bottling units bottles and distributes the preferred brands, viz. coca-cola, Fanta, Thums-

up, Maaza, sprite, crush, Kinely water, Kinely soda, diet coke and Canada dry to the Indian

consumer through a network over 300000 retail outlets spread across the country. The coca-cola

India system is the largest soft drinks producer in the country with a work of over 15000 people.

After a 16 years absence, coca-cola returned to India in 1993. The company’s presence in India

was cemented in November that year in a deal that gave coca-cola ownership of the nation’s tops

soft drinks brands and bottling network.

Coca-cola India has made significant investments to build a continuously improve its business in

India, including new production facilities, wastewater treatment plants, distribution systems and

marketing equipment.

During the past decades, the coca-cola system has invested more than us$1

billion in India.

Coca-cola is one of the country’s top international investors.

In 2003, coca-cola India pledged to invest a further US 100 million in its

operations.

Coca-Cola business system directly employs approximately 6000 local people

in India.

In India, we indirectly create employment for more than 125000 people in

related industries through our vast procurement, supply and distribution

system.

Virtually all the goods and services required to produce and market Coca-Cola

locally are made in India.

The Coca-Cola system in Indian comprises 27 wholly owned company-owned

bottling operations and another 17 franchisee-owned bottling operations.

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A network of 29 contract-packers also manufactures a range product for the

Company.

The complexity of the Indian market is reflected in the distribution fleet,

which includes 10-tonne trucks, open-bay three-wheelers that can navigate the

narrow alleyways of Indian cities, and trademarked tricycles and pushcarts.

Growth strategy in coca-cola

In spite of growing competition in the soft drinks market, many companies, ranging from

multinationals to niche specialists, continue to see volume growth well in excess of the

market average. Much of their success can be attributed to progressive attitudes to their

competitive environment and by exploiting new production, packaging and distribution

technologies, they are able to meet consumers' needs more accurately and immediately than

ever before. With leading players such as The Coca-Cola Company driving the battle for

share of throat, soft drinks manufacturers of all sizes need to equip themselves with a wide

variety of innovative strategic tools if they are to remain competitive. Business Insights

report, the Growth Strategies in Soft Drinks report highlights emerging opportunities in the

industry, and examines the ways that companies can best exploit them. From the emerging

markets of Asia-Pacific, Eastern Europe and South America, to fast-growth niches in the

developed world, this latest study is the definitive guide to innovation, main players, market

sizes and growth prospects.

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Products of coca-cola in India: -

The Hindustan coca-cola beverages private limited has got a wide range of product. Some of

the products are as follows: -

COCA-COLA

THUMS-UP

FANTA

SPRITE

DIET COKE

LIMCA

MAAZA

KINLEY SODA

KINLEY DRINKING WATER

GEORGIA

GEORGIA GOLD

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Marketing Department

Marketing is more than any other business function, deal with customers. Building customer

relationship based on customer value and satisfaction is at heart of modern marketing. In

other words, marketing is managing profitable customer relationship. The main 2 objectives

of marketing is to attract new customers by promising superior value and to keep grow

current customer by delivering satisfaction.

Definition: -

“ Marketing is a social and managerial process whereby individuals and groups obtain what

they need and want through creating and exchanging products and value with others.

Core concepts of Marketing: -

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Value, Cost and Satisfaction

Exchange and Transportation

Relation and Network

Market

Marketers and Prospects

Needs, Wants and Satisfaction

Product

Societal Marketing Concept: -

The societal marketing concept holds that the organization should determine the needs, wants

and interest of target markets.

In Coca-cola Company most of the people see it as a highly responsible corporation

producing five soft drinks that satisfy customer tastes. Yet some consumer and

environmental have voiced concerns that coke has little nutritional value, can harm people’s

teeth, contains caffeine and adds to the little problem with disposable bottles and cans.

Such concerns and conflicts led to the societal marketing concept. This concept calls upon

marketer to balance three considerations in setting their marketing policies, company profits,

consumers wants and society interest.

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Analysis of the marketing mix elements: -

Once the company has decided on its overall competitive marketing strategy, it is ready to

begin planning the details of the marketing mix, one of the major concepts in modern

marketing. The marketing mix is the set of controllable, tactical marketing tools that the

firms blend to produce the response it wants in target marketing.

In order to satisfy the need of its customers a business firm must determine a marketing mix.

Marketing mix is the term used to describe the combination of four inputs, which constitute

the core of company’s marketing system. Marketing mix includes the product, the price

structure, the promotional activities and distribution system.

The major instrument of the marketing in the hands of management is: -

A] PRODUCT: -

It includes product variety, quality, Design, Features, Brand name, Packaging, sizes, services,

warranties, and returns. So, the following is the details regarding all the products of coca-

cola.

At Hindustan coca-cola beverages private limited the product like coca-cola, fanta, sprite,

diet coke, Limca, Maaza, kinley soda and water, Georgia and Georgia gold are provided in

various quantities such as 300 ml, 500 ml, 1 liter, 1.5 liter, and 2 liter also.

o BRANDING: -

A brand is a name, term, sign, symbol, or a design or a combination of these in tends to

identity the products or services of one seller or group of sellers and to differentiate than

identifies the makers or seller of a product. Branding is a process of assigning a distinctive

brand name or symbol to a product in order to differentiate it from competitive products.

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Branding helps to give a separate identity to the product. It facilitates the advertising and

price control branded goods enjoys a wider market as the needs personal inspection or

samples are avoided. By registering its brand a businessman can protect himself from

duplication. A good brand should be brief, simple, easy to spell and remember, achieve a

distinctive.

There are more than 135 brands of coca-cola company in the world. Coca-cola is the main

brand name of the coca-cola company. Coca-cola is very sweet and short brand name.

o BRAND EQUITY OF COCA-COLA: -

The value of a brand based on the extent to which it has high brand, legally, strong brand

association and when asset such as patents, trademarks, and channel relationships.

The 2004 Interbrand-business week survey of the top 100 global brands finds coca-cola at 1st

position through not without drop in brand valuation. Coca-cola’s brand valuation of $67394

million was a 4% drop from 2003 numbers.

Latest selling brands of coca-cola in India: -

COCA-COLA

FANTA

LIMCA

SPRITE

MAAZA

KINLEY MINERAL WATER

KINLEY SODA

DIET COKE

VANNILA COKE

SUNFILL

THUMSUP

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GEORGIA

GEORGIA GOLD

COCA-COLA: -

The world’s Favorites drink. The world’s most valuable brand. Coca-cola has a truly

remarkable heritage. From a humble beginning in 1886, it is now the flagship brand of the

largest manufacturer, marketer and distributor of non-alcoholic beverages in the world.

SLOGAN: -“THANDA MATLAB COCA-COLA”

THUMS-UP: -

Thums-up is a leading carbonated soft drink and most trusted brand in India. Originally

introduced in 1977, Thums-up was acquired by the coca-cola company in 1993.

Thums-up is known for its strong, fizzy, taste and its confident, mature and uniquely

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

SLOGAN: - “TASTE THE THUDER”

FANTA: -

Fanta the orange drink of the company is seen as one of the Favourite drinks since 1940’s.

Fanta entered in the Indian market in the year 1993.

Over the years Fanta has occupied a strong market place and is identified as “ The Fun

Catalyst “

Perceived as fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling

bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge

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in the moment. This positive imagery is associated with happy, cheerful, and special times

with friends.

SLOGAN: - “ RANG LE DIL KHOL KE “

Fanta advertising over the time has had the highest association with fun and friends that has

reflected through past TV commercials like Masti ka Apana Taste, Bajao Masti Ki ghanti to

the recent commercials Dil Khol Ke at the Airport. Rani Mukherjee, as the brand ambassador

for Fanta is the perfect embodiment of brand character vis fun, vivacious and energetic.

Fanta is available around the country in 200ml, 300ml, 500ml + 100ml, 1.5ltr, 2ltr, 2.25ltr

and 330ml cans.

VANILLA COKE: -

Vanilla Coke was launched in 2002 in North America and subsequently in various other

markets across the world and met with immense success. The idea of the refreshment of

Coca-Cola with a hint of Vanilla was found very appealing when tested in India and we

launched Vanilla Coke in April 2004.

The Thanda Matlab Coca-Cola empaign which was launched in 2002 had made Coca-Cola

Indias’ favorite soft drink and this helped launch Vanilla Coke as ‘Ice-Creamy Thanda’,

thereby making the new brand something familiar and comfortable to the consumer.

Vanilla Coke was launched with a highprofile TVC featuring teen heartthrob Vivek Oberoi

in a remarkably new and different retro avatar. Directed by Ram Madhvani, the TVC has

become a range in the country with popple from various walks of life using the term

‘Wakaw’ in various contexts. The Bappi Lahiri track has also become very popular.

SLOGAN: -“ICE CREAMY THANDA”

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SPRITE: -

Worldwide Sprite is ranked as the No. 4 soft drink and is sold in more than 190 countries.

In India, Sprite was launched in year 1999 and today it has grown to be one of the fastest

growing soft drinks, leading the Clear lime category.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has

stood for a straightforward and honest attitude. Its clear crisp refreshing taste encourages the

today’s youth to trust their instincts, influences them to be true to who they are and to obey

their thirst.

Sprite advertising for has always been memorable with very high recall value, especially

amongst the youth. With popular TV commercials like Lisa Ray, Aish, Market Research and

its’ latest take on its competitor – ‘I don’t want to Do’ Sprite has stood in the minds of youth

as “Sprite Bujhaye Only Pyass, Baki All Bakwaas”, which has became recognizable around

the country.

Sprite is available around the country in 200ml, 300ml, 500ml, 500ml + 100ml, 1.5ltr, 2.25ltr

and 330ml cans.

SLOGAN:- “CLEAR HAI !”

LIMCA: -

Lime n’ limoni Limca, the drink that can cast a tangy refreshing spell on anyone, anywhere.

Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3

decades.

The brand has been displaying healthy volume growths year on year and Limca continues to

be the leading flavor soft drink in the country.

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The sharp fizz and lemoni bite combined with the single minded positioning of the brand as

the ultimate refresher has continuously strengthened the brand franchise. Limca energizes,

refreshes and transforms. Dive into the zingy refreshment of Limca and walk away a new

person.

SLOGAN: - “LIME N LIMONI LIMCA”

KINLEY WATER: -

Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A

ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very

sustenance of life, a celebration of life itself.

The importance of water can never be understated. Particularly in a nation such as India

where water governs the lives of the millions, is it as part of everyday rituals or as the

monsoon, which gives life to the sub-continent.

Kinley water understands the importance and value of this life giving force. Kinley water

thus promise 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. That is why

we introduced Kinley with reverse-osmosis along with the latest technology to ensure the

purity of our product. That’s why we go through rigorous testing procedures at each and

every location where Kinley is produced.

Because we believe that right to pure, safe drinking water is fundamental. A universal need,

that cannot be left to chance.

SLOGAN: - “ BOOND BOOND ME VISHWASH”

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MAAZA: -

Maaza was launched in 1976. here was a drink that offered the same real taste of fruit juices

and was available throughout the year.

In 1993, Maaza was acquired by Coca-Cola India. Maaza currently dominates the fruit drink

category.

Over the years, brand Maaza has become synonymous with Mango. This has been the result

of such successful campaigns like “ Tazza Mango, Maaza Mango” and “Botal mein Asm,

Maaza hain Naam”. Consumers regard Maaza as wholesome, natural, fun drink, which

delivers the real experience of fruit.

The current advertising of Maaza positions it as an enabler of fun friendship moments

between moms and kids as moms trust the brand and the kids love its taste. The campaign

builds on the existing equity of the brand and delivers a relevant emotional benefit to the

moms rightly captured in the tagline “ Yaari Dosti Taaza Maaza”.

It is available in SKUs of 200ml RGB, 250ml RGB, 125ml Tetra pack and 200ml Tetra pack.

SLOGAN: - “ YAARI DOSTI TAAZA MAAZA”

GEORGIA: -

In the company’s journey towards the vision ‘leading the beverage revolution in India’, now

even Garam matlab Coca-Cola… A hot launch from Coca-Cola India.

Georgia, quality tea and coffee served from state of the art vending machines is positioned to

tap into the nations biggest beverage category.

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Georgia, which promises a great tasting, consistent, hygienic and affordable cup is available

in a range of 7 sizzling flavors, adrak, elaichi, masala and plain tea cappuccino, mochaccino

and regular coffee.

Georgia is currently in the roll out stage after a successful launch in Delhi % Kolkata.

Georgia aims to become the consumers preferred choice of hot beverage when he is on the

go; the brand is well on course to achieving its vision.

While Georgia is a mass-market offering, Georgia Gold is the premium brand, which caters

to the connoisseur. Made from freshly roasted and ground coffee beans, Georgia Gold is

delicious tasting aroma with the tantalizing aroma of fresh coffee. Currently available

exclusively at McDonalds outlets across the country Georgia Gold has driven coffee sales

through the roof. The success of hot beverages from Georgia Gold has resulted in extension

into the cold category, with the introduction of Ice Tea and Cold Coffee.

SLOGAN: - “ GARAM GARAM GEORGIA”

DIET COKE: -

Diet coke was born in 1982 and quickly became the number 1 sugar free drink in diet

conscious America. It is known as diet coke in the U.S, Canada and Australia and great

Britain and coca-cola light in other countries. It is 3rd in the world in soft drink.

It is for the people who don’t want calories, but plenty of taste ad campaigns around the

world for diet coke share a playful, sophisticated and fun loving attitude.

SLOGAN: - “ TASTE THE POWER OF 1 “

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SUNFILL: -

A Sunfill power drink has been developed locally based on the Indian consumer preferences.

It is also present in the other country either in the form of fruit juice based drink or in

powered concentrated form in countries like Indonesia, Sri Lanka, and Bangladesh. It has

been developed using the coca-cola company’s expertise in the beverage business.

Keeping mind in affordability factor and the competition, Sunfill is available in 3 variants: -

Sunfill regular

Sunfill Anand

Sunfill Tarang

o LABELING: -

Labels may range from simple tags attached to product to comply graphics that are part of the

package. They perform several functions and the seller has to decide which ever to use. At

the very best, the label might describe several things about the products who made, its

contents, how it is to be used and how to use it safely.

Labels perform several functions like it identifies the product or brand for instance, the name

Sunkist stamped to oranges. The label might also grade the product; canned peaches are

grade labeled A, B and C. finally label might promote the product through its attractive

graphics.

LABELING OF COCA-COLA

Once the bottles have been filled and capped they move on to labeled. A special machine

dispenses labels from large roller cuts them and place them on the bottles. For special labels

such as commemorative bottles for football championship the labels are sent to the bottling

plant for approval, and then used for packaging. Depending upon the occasions, some of

these special bottles will go only to specific locations.

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Exa:- a national football championship bottle will go to the hometown or state of the

championship team.

o PACKAGING: -

Packaging is defined as all activities of designing and producing the container for a product.

The container is called the package and might include up 3 levels.

Many product offered to the market have to be a packaged. Some marketers have called

packaging a 5th P along with product, price, place, promotion.

It involves the designing and producing appropriate package for the product. It contains some

important and useful information like :-

The code number, the net weight, date of packaging, date of expiry, maximum retail price,

ingredients.

PACKAGING OF COCA-COLA: -

Once filled beverages have passed final inspection they are ready to be packaged for

delivery. Generally packaging can refer to everything, from the unique bottle and can

designs, to label designs, to cardboard boxes and containers, to plastic rings. Because the

need and tastes of consumers are so diverse, the packaging varies depending on where the

beverages are being sent.

o QUALITY: -

The company is very strict about in the matter of quality. The company can retain or keep

quality. The coca-cola company is more than 115 years old because of its good quality. The

company has also a separate department for quality control. The company have a R& D

department for improving and maintaining a quality.

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The framework of the coca-cola quality system is very much like a business, multifaceted

with quality at its core. The coca-cola quality system is a world wide initiative involving

every aspect of our business. Everyone who works for or with coca-cola is empowered and

expected to maintain the highest standards of the quality in products, processes and

relationships. The coca-cola quality system mandates in depth self-assessment throughout

their operations, by all their business units.

They are committed to delivering high quality products to their customers throughout the

globe each and every time. The coca-cola company strives to deliver on this promise every

day, creating a stronger and more sustainable future for their business and for the

communities they serve. The processes and quality assurance programmes followed by our

world-class manufacturing facilities in India.

B. PRICE: -

The amount of money charged for a product or services, or the sum of the values that

consumers exchange for the benefits of having or using the product or service.

Pricing policies or strategies have played major role in the company’s growth and

development over the course of the operation of company. Price denotes the value of product

and service expressed in money. Only when a buyer and seller agree on price they can

exchange and transact the goods and services and lead to transfer of ownership.

Pricing is the process of determining the product considering all the factors and policies of

the firm.

In the cut and through competition with Pepsi, coca-cola continually cut down its various

brands policies.

At coca-cola company the prices of the products like soft drink, mineral water, tea, coffee

etc. are determined according to various internal and external factors.

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SELECTING PRICING POLICY: -

C. PLACE: -

The term place means the distribution net-work of the company. Distribution network is used

to refer to the various alternative link-reads which connect the produces with the customer.

A distribution channel transfer goods from producer to end user that is consumers. It over

comes the major factor such as time placed and possession gaps that separate goods and

services from those who would use them. Members of the marketing channel perform many

key functions. To the extent that the manufacturer performs there functions, its cost rise and

its price becomes high.

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Selecting the pricing objective

Determining demand

Estimating cost

Analyzing competitor’s price

Selecting the pricing objective

Selecting pricing method

Selecting final price

In order to strengthen its distribution reach Coke is expanding the number of outlets In the

rural market. It has added 40000 new rural outlets this year taking the total to 400000. the

channel will be used to push mainly the 200ml.

Coke executives claim that the company has been a volume growth of around 15% in the first

five months of year as compared to the same period last year.

Coca-Cola is enhancing its cooler network to cover around 40% of seven lakh outlet up from

30 percent at present. Under the cooler project, cooling machines are being provided to the

retailers at a discounted rate.

Coca-Cola is also in the process of appointing new distributors and mechanizing its

distribution through three wheelers and trucks. It is adding one lakh outlets, of which 20000

will come from 500 new distributors.

Apart form investing heavily in the cooler project, the company is also focusing on bringing

efficiencies and driving down cost in its distribution operation.

COCA-COLA’S DISTRIBUTION CHANNEL: -

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D. PROMOTION: -

Advertising is one of the information for the customers. Through the advertisements, they can

know about products, product improvement, price changes, packaging, innovations, special

credit terms, new uses for the product and things like.

Promoting the products of The Coca-Cola Company demands the talents of professionals in

many different areas. The Company enlists experts in the creative, media planning and buying,

research and sales promotion arenas from advertising agencies to work with its internal

marketing team. Some of the world's best-known, award-winning television advertisements have

been produced for products of The Coca-Cola Company.

Advertising for 'Coca-Cola' has always been acclaimed internationally. The first advertising

theme was introduced in the early 1900's: the decades since have seen a wealth of popular

themes that quickly became recognizable around the world.

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Hindustan coca-cola beverages limited

Agents

Stock

Whole seller

Semi-whole seller

Retailer

Consumer

Coca-cola is a multinational company so in different countries there are advertises in different

language. Therefore the expenses of advertisements are more than any other expenses. In world

coca-cola has a huge advertising budget or a coca-cola is one of the companies spent more on

advertising.

OBJECTIVES OF THE ADVERTISING: -

To inform market about new product

Suggesting new uses of that product

Informing the market of price changes

Changing buyer’s perception about product attributes

Reminding buyers

To warm people against superior product

To improve dealer relationship

To build a company’s image

Reducing buyer’s fear.

SWOT ANALYSIS: -

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SWOT is an acronym for the internal strength and weaknesses of a business and

environmental opportunities and threats facing that business. SWOT analysis is a systematic

identification of these factors and the strategy that reflects the best match between them. It is

based on the logic that an effective strategy maximizes a business strength and opportunities

but at the same time minimizes its weakness and threats.

COKE’S STRENGTH: -

Coca-Cola has a strong lead in the international arena, with about 60 percent of its

profits derived from overseas soft drink operations. Pepsi, its nearest competitors, is

far behind in international sales.

Decentralized management allows Coke to make quick decisions in the domestic and

international markets. Coke’s domestic operations are divided into bottling and

fountain. Bottling is divided into five selling areas, with all responsibility at the area

level.

Coke has a well-diversified product line and is the top seller in most of the flavor

segments-brand Coca-Cola, Coca-Cola Classic, Diet Coke, Sprite, Caffeine-Free Diet

Coke, and Minute Maid. These products allow the Coca-Cola system to better

segment the market and better position itself in the different segments.

Coke is the number one supplier of syrup for fountain sales. Coke is especially strong

in sales to fast-food restaurants. Its network of wholesalers is considered top notch.

COKE’S WEAKNESSES:

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Much of the original bottler’s contract, which was developed in the early 1900s, is

still in effect today. Because the contract fixes the price of syrup, Coke has no control

over the price. Despite some amendments, this contract still represents an obstacle to

the company.

Many small bottlers, lacking the economies of scale to compete in today’s market

place, still exist in the system.

The extensive product line could be considered a weakness as well as strength, as

more products and more fragmentation result in a higher cost of production,

inventory, and distribution. In addition, cannibalizing existing products has become

an important factor

COKE’S OPPORTUNITIES: -

Coke’s competitors’ lacks substantial diversification into the international market.

Most of their revenues come from the domestic operations.

With only about 30% of their revenue coming from soft drink, management’s

attention may be diverted from this important aspect of the business.

Pepsi is the main competitor of coca-cola and its fountain side of business is evident,

with only 20% of market share. Coke has huge distribution network and it is trying to

secure distribution by buying fast-food restaurant chains.

COKE’S THREATS: -

Competitors have strong, concentrated bottlers, which because of their large size have

good economies of scale and are thus low-cost producers.

Pepsi has more flexibility in its pricing policy since the company is not hampered by

a fixed price contract with its bottlers.

COMPETITION WITH PEPSI: -

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When Pepsi-Cola was introduced to the market, Coca-Cola was well established, and Coke

customers were extremely loyal to the product. Thus, from the beginning Pepsi fought hard

for market share, and it experienced difficulty in penetrating most markets. The New York

area was an especially difficult market for Pepsi to crack, but it was a vital area because of its

size and because every competitor understood from the beginning that market share was the

name of the game. At the time, New York had the highest per-capita rate on consumption of

soft drinks in the country.

Today the market structure is very typical. In each and every field of business people faced

cut & through copetition likewise in Coca-Cola it has strong competitors like Pepsi. Today

these two are the biggest industry ever seen in this industry.

During World War II, Coca-Cola got unexpected help entering the international market.

Coke’s brand loyalty was so strong among GIs that the U.S. government funded the

contribution of Coca-Cola bottling plants throughout the world. After the war, The Coca-

Cola Company was so far in front of its competitors in developing the international market

that it would take firms like Pepsi almost 30 years to begin to catch up. Today, Coke is still

the dominant influence in the international soft drink industry.

From last 15 years the competition running very tightly. Pepsi has every brand to compete

with the Coca-Cola. So due to this strategy Pepsi get the bigger market segment in this side

when Coca-Cola tries to get all the biggest stars of Bollywood in its advertisements. The

Pepsi tood the entire cricketer in its advertisement. The cricket is more favorite than the

Bollywodd as per the Pepsi’s strategy. Coca-Cola has stars like Amir Khan, Vivek Oberoi,

Akshay Kumar, Hritik Roshan, Aishwarya, Salman Khan, Rani Mukharji and cricketer

Virendra Shewag. In front of the whole Indian cricketer team called as “Men in Blue” this ad

campaign works very soundly to Pepsi’s new brand for the Cricket World Cup “ Pepsi Blue”

Pepsi has Sharukh Khan, Fardin Khan, Saif Ali Khan, Preety Zinta dew team and hot favorite

Sachin Tendulkar as the brand ambassador. Both Pepsi and Coca-Cola sponsors the cricket

matches. Bothe Pepsi and Coca-Cola sponsors the cricket matches, NBA matches, welfare

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programs, foot-ball matches in England more and more various dance club’s in local areas, in

short they does marketing in that way from where maximum people can attach with team

surely Coca-Cola become very Successful in these strategies.

Pepsi’s Brands against Coca-Cola: -

Coca-cola Pepsi

Coca-cola,

Thums-up

Pepsi

Diet Coke Diet Pepsi

Sprite 7 UP,

Mountain Dew

Maaza Slice

Fanta Mirinda Orange

Limca Mirinda Lemon

Kinley water Aquafina water

So, we can in above schedule that most of Coca-Cola brand has storng competitor brand of

Pepsi. In case of sprite the Pepsi introduced 7 Up and Mountain Dew, so in that sector Coke

back one stage but incase of Coca-Cola , Thums-Up the Pepsi is alone, people use to drink

Thums-Up because it is famous from many years, so Pepsi is back one step there. But at last

60% of market share is in hand of Coca-Cola, which is bigger part in this type competition.

BIBLIOGRAPHY: -

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WEB SITES: -

www.coca-cola.com

www.coca-colaindia.com

www.indiainfoline.com

www.strategiy.com

www.statcan.ca.com

www.globalbusinessinsights.com

www.euromonitor.com

BOOKS: -

Thompson & Strickland, 2003, Strategic Management,

Tata McGrew-Hill Edition, New Delhi.

John A. Pearce & Richard B.Robinson, 2000, Strategic Management,

All India Traveler Bookseller, New Delhi.

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