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MARKETING STRATEGY ADOPT BY SUMMER TRAINING PROJECT REPORT

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Page 1: Marketing Strategy Adopt by Coca Cola Final 3

MARKETING STRATEGY ADOPT

BY

SUMMER TRAINING PROJECT REPORT

PREPARED BY: DINESH SINGH

MBA 3rd SEM

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PROJECT REPORT

ON

MARKETING STRATEGIES ADOPTED BY COCA COLA

A Project Report submitted in partial fulfillment of the requirements for the award of the

degree of

MASTER OF BUSINESS ADMINISTRATION

TO

U P TECHNICAL UNIVERSITY,LUCKNOW

BY

DINESH SINGH

Roll No. 0812270027

Under the guidance of

Ms. PARUL DIXIT

SHRI RAM SWAROOP MEMORIAL COLLEGE OF ENGINEERING AND

MANAGEMENT, LUCKNOW

JULY 2009

DINESH SINGH/MBA 0812270027/2008-102

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STUDENT’S DECLARATION

I hereby declare that the Project Report conducted on

MARKETING STRATEGIES ADOPTED BY COCA COLA

Under the guidance of

Ms. PARUL DIXIT

Submitted in Partial fulfillment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION

TO

U P TECHNICAL UNIVERSITY,LUCKNOW

Is my original work and the same has not been submitted for the award of any other

Degree/diploma/fellowship or other similar titles or prizes.

Place: LUCKNOW DINESH SINGH

Date: Reg. No. 0812270027

DINESH SINGH/MBA 0812270027/2008-103

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ACKNOWLEDGEMENT

It is indeed a pleasure doing a project on “MARKETING STRATEGIES

ADOPTED BY COCA COLA”. I am grateful to Mr. Ajay Sharma (Area sales

manager) and Mr. Amit Goyal (Manager- Market Execution) for providing me this

opportunity.

I owe my indebtedness to My Project Guide Ms. Parul Dixit, for her keen interest,

encouragement and constructive support and under whose able guidance I have completed

out my project. She not only helped me in my project but also gave me an overall exposure to

other issues related to retailing and answered all my queries calmly and patiently.

I take the pleasure to express thanks to all my colleagues for many useful discussions

and cooperation during the course of the project work.

DINESH SINGH/MBA 0812270027/2008-104

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TABAL OF CONTENTS

Executive summary

CHAPTER 1- INTRODUCTION

CHAPTER 2- PROFILE OF THE ORGANIZATION

CHAPTER 3- MARKETING STRATEGY OF COCA COLA

CHAPTER 4- PROFILE OF THE ORGENIZATION COMPETITOR

CHAPTER 5- ADVERTISING AND SALS PROMOTION

CHAPTER 6- DISCUSSIONS ON TRAINING

CHAPTER 7- STUDY OF SELECTED RESEARCH PROBLEM

CHAPTER 8- ANALYSIS OF DATA

CHAPTER 9- SUMMARY AND CONCLUSIONS

CHAPTER 10-ANNEXURES

DINESH SINGH/MBA 0812270027/2008-105

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EXECUTIVE SUMMARY

 From this summer training and project titled "STRATEGY ADOPT BY COCA COLA" in

Coca-Cola, I have learned a lot about real practical work being done in the market I have also

watched & learned the practical applicability of the various things that we have studied

theoretically.

I observed on the basis of survey in AGRA city that Coca-Cola lay emphasis on

merchandising in order to become the No.1 brand in soft drink industry the report was finds

out the availability of different flavor and packs.

Cola-Cola adopt a good customer relationship management, it is focus on the, segment of the

product because each segment is affected by different sets of factor which hamper or enhance

sales. Each segment had its own Pros & Cons. So we have to understand the various segment

of soft drink industry that which flavor is existing more in the market, Such as Thums-up

strong brand of coke which is more popular in young generation. I also observe about fate

dealer, sub dealer, monopoly counter & its marketing strategy. Such as fate dealer is

influence wrong direction to the market. They are supply product at high margin with low

scheme.

The company is making all out efforts to quench the thrist of millions of people around

the globe but thirst of the company to capture the globe should never be quench.

A feeling of being satisfied should never be allowed to creep into the management as well as

the rank and the profile of the company. Agra market being a gateway to the U.P. and Delhi

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has got immense and significant potential. The efforts to capture the market completely

should be the soul aim of management particularly in the light of the fact that a major

bottling plant is situated in the area.

DINESH SINGH/MBA 0812270027/2008-107

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CHAPTER 1

INTRODUCTION

GENERAL INTRODUCTION ABOUT THE SECTOR

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Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)

are products that have a quick turnover and relatively low cost. Consumers generally put less

thought into the purchase of FMCG than they do for other products. The Indian FMCG

industry witnessed significant changes through the 1990s. Many players had been facing

severe problems on account of increased competition from small and regional players and

from slow growth across its various product categories. As a result, most of the companies

were forced to revamp their product, marketing, distribution and customer service strategies

to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed

significantly. With the liberalization and growth of the Indian economy, the Indian customer

witnessed an increasing exposure to new domestic and foreign products through different

media, such as television and the Internet. Apart from this, social changes such as increase in

the number of nuclear families and the growing number of working couples resulting in

increased spending power also contributed to the increase in the Indian consumers' personal

consumption. The realization of the customer's growing awareness and the need to meet

changing requirements and preferences on account of changing lifestyles required the FMCG

producing companies to formulate customer-centric strategies. These changes had a positive

impact, leading to the rapid growth in the FMCG industry. Increased availability of retail

space, rapid urbanization, and qualified manpower also boosted the growth of the organized

retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of

the FMCG industry by focusing on rural markets, direct distribution, creating new product,

distribution and service formats. The FMCG sector also received a boost by government led

DINESH SINGH/MBA 0812270027/2008-109

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initiatives in the 2003 budget such as the setting up of excise free zones in various parts of

the country that witnessed firms moving away from outsourcing to manufacturing by

investing in the zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in

large numbers and so the cumulative profit on such products can be large. Unlike some

industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass

layoffs every time the economy starts to dip. A person may put off buying a car but he will

not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady

manner irrespective of global market dip, because they generally satisfy rather fundamental,

as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the

fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main

contributor, making up 32% of the sector, is the South Indian region. It is predicted that in

the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the

biggest sectors of the Indian Economy provides up to 4 million jobs.

INDUSTRY PROFILE

ORIGIN AND DEVELOPMENT OF THE INDUSTRY

DINESH SINGH/MBA 0812270027/2008-1010

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Soft drink industry scenario the world over is almost the same with two major players i.e.

Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the

industry is Cadbury-Schweppes and some local player in individual countries. The major

components of the industry consist of the concentrate manufactures, bottles and the sales and

distribution network of the companies the rule and responsibilities of each of them are

different.

The major activity taken up by the concentrate manufactures relates to the production of the

basic product which is battled by the battling plants mostly independents and subsequently

sold through the established distribution set ups of the respective companies. Incidentally a

lion’s share of the total sales of the product of most of the companies is through fountain a

sale which sums to be the most popular outlet in the western countries. Through in India

fountain sales from a very insignificant part of the sales revenue. During the initial stag both

soft drink majors used a network of independent bottlers to bottle and market their products.

Independents bottling arose primarily because it was not possible to create an effective

organization for operating a vertically integrated company with hundreds of geographically

separated manufacturing unit and local delivery operations given the limited transportation

and communication system of the time and the lack of sophisticated financial and

management controls.

Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental

competitive advantage that allowed that to compete so effectively lies in their ability to

operate through a very cumbersome distribution system.

In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft

Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys

DINESH SINGH/MBA 0812270027/2008-1011

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introduced Thums up in the beginning of 1980s. By the end of 80’s Parley with Limca, gold

spot and Thums up emerged as clear winner with around 60% market share.

In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This

proposal as rejected on the grounds that the import of concentrate could not be agrees and the

use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this

time in collaboration with Punjab agro Corporation (PIAC) and Volta’s India Limited and

succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of ‘Lehar

Pepsi’.

The most strategic step taken by Coca Cola was the purchase of Parley brands. With this

coke instantly had the ownership of countries tap soft drinks brands as well as got access to

Parleys extensive 54 plants bottling as well as a pre set distribution net work. This purchase

gave coke an over might lead occur rival Pepsi which had came almost 5 year earlier.

GROWTH AND PRESENT STATUS OF THE INDUSTRY

The total value of the soft drink industry was $48 billion in 1990’s. The average in the states

48 gallons per year. Industry analyst contended that the soft drink industry had plateaued, and

that total consumption was unlikely to increase significantly in the near future. As a

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consequence, the cola wars were moving to international markets. Although, after the mid

90’s both company found a different strategy fueled by the twin engines of innovation and

diversity. Consumers are drinking a widening assortment of beverages. There is increasing

demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks

(tea and coffee), and replenishment drinks (sports drinks and water). Coke, the world’s

largest soft drink company with a 45% share of the worldwide soft drink market, earned 80%

of its profits outside of the United States in 1993. In according to this, Pepsi, with only 15%

of its beverage operating profits coming from overseas was using “guerilla warfare” to attack

Coke in selected international markets. Americans consumed 23 gallons of soft drinks a year

in 1970 compared to 48 gallons in 1993. This growth was fueled by increasing availability

and affordability of soft drinks in the marketplace, as well as the introduction and growth of

diet soft drinks. And then become stabile. For improve profits on the saturated market was

possible by cost reduction, new products but not cannibalize your products, and better value

chain that returns you as a competitive advantage. It was not easy. There were many

alternative to soft drinks ; coffee, beer, milk, tea, bottled water, juices, powdered drinks,

wine, distilled spirits, and tap water. The 1980s Pepsi and Coke transformed their businesses.

These consumer-oriented businesses experienced changes in the forces impacting key

strategy areas: investment; distribution channels; trade and manufacturer relations;

shareholder pressure; marketing and promotional programme design; new competitors and

proliferation of products across their traditional categories, etc. Using 1978 as a base year,

the Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink

price growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola

segment of the soft drink industry held the dominant (68%) share of the market in 1992,

DINESH SINGH/MBA 0812270027/2008-1013

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followed by lemon/lime with 12%, pepper flavor 7%, orange 3%, root beer 2%, and others

8%. Coke and Pepsi had a combined 73% of the soft drink market.

Pepsi and Coca-Cola have more than 200 different products globally in 2000.

FUTURE OF THE INDUSTRY

Consumers are drinking a widening assortment of beverages. There is increasing demand for

health and nutrition drinks (juices and juice-based products), rejuvenation drinks (tea and

DINESH SINGH/MBA 0812270027/2008-1014

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coffee), and replenishment drinks (sports drinks and water). Soft drink companies intend to

fulfill the needs of consumers for every occasion at every stage of their lives. Both Pepsi and

Coca Cola pronounced their self a “total beverage company”. More and more, people are

turning to noncarbonated beverages to give them vigor and energy. Whether it’s for a lift

during the day or for enjoyment after the workday ends, consumers are embracing ready-to-

drink teas and coffees. With every new discovery of the health benefits of teas, demand

increases even more.

The basic product of soft drink companies “cola”. Today, cola is the most consumed

beverage, still in the world. Even as lifestyles change all over the world, there is one

beverage that remains the essential element for all people — water. Soft Drink Companies

are also focusing on their portfolio of replenishment beverages to meet differing local tastes

for water and to provide sports drinks that quench the thirst of people with active lifestyles.

DINESH SINGH/MBA 0812270027/2008-1015

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CHAPTER 2

PROFILE OF THE

ORGANIZATION

The Mission Statement of the Coca Cola Company

Our mission statement is to maximize shareowner value over time.

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In order to achieve this mission, we must create value for all the constraints we serve,

including our consumers, our customers, our bottlers, and our communities. The Coca

Cola Company creates value by executing comprehensive business strategy guided by

six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink

beverages they want to drink through out the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our

share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-

term cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or

serves our products directly to consumers. We keenly focus on enhancing value for these

customers and helping them grow their beverage businesses. We strive to understand each

customer’s business and needs, whether that customer is a sophisticated retailer in a

developed market a kiosk owner in an emerging market.

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There are nearly 6 million people in the world who are potential consumers of our company’s

product. Ultimately, our success in achieving our mission depends on our ability to satisfy

more of their beverage consumption demands and our ability to add value for customers. We

achieve this when we place the right products in the right markets at the right time.

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ORIGIN OF THE ORGANIZATION

Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-Cola

is manufactured by “The Coca-Cola Company” and is often referred to as Coke. Coke is one

of the most recognizable brands in the world.

Coca-Cola was invented by John Stith Pemberton in Covington, Georgia in

May 1886. The beverage was initially a coca wine and was called Pemberton’s French Wine

Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a

carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves

from South America were added as a stimulant to the beverage along .with kola nuts which

were added to give flavor to the drink. Due to them the name Coca-Cola was given to the

beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for Coca-

Cola in 1887 from John Pemberton for $2,300. Asa Candler marketed Coke

aggressively and was responsible of the dominance of the world soft drink market by Coke.

During Pemberton’s time five ounces of coca leaf were added per gallon of the syrup which

constituted a significant dose. Candler claimed in 1891 that he had altered the formula of

Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-Cola also

contained nine milligrams of cocaine per glass till 1904, when they started using “spent”

leaves instead of fresh leaves.

DINESH SINGH/MBA 0812270027/2008-1019

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GROWTH AND DEVELOPMENT OF THE ORGANIZATION

The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola

found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey

and more.  

In 1978, The Coca-Cola Company was selected as the only Company allowed selling

packaged cold drinks in the People's Republic of China.

The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much

change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became

chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who

fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called

"intelligent risk taking."  

One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola, the

first change in formulation in 99 years. In taste tests, people loved the new formula,

commonly called “new Coke.” In the real world, they had a deep emotional attachment to the

original, and they begged and pleaded to get it back. Critics called it the biggest marketing

blunder ever. But the Company listened, and the original formula was returned to the market

as Coca-Cola classic®, and the product began to increase its lead over the competition -- a

lead that continues to this day.

The 1990s were a time of continued growth for The Coca-Cola Company. The Company's

long association with sports was strengthened during this decade, with ongoing support of the

Olympic Games, FIFA World Cup™ football (soccer), Rugby World Cup and the National

Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR

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racing, connecting the brand with one of the world's fastest growing and most popular

spectator sports.  

New beverages joined the Company's line-up, including Powerade® sports drink, Qoo®

children's fruit drink and Dasani® bottled water. The Company's family of brands further

expanded through acquisitions, including Limca®, Maaza® and Thums Up® in India,

Barq's® root beer in the U.S., Inca Kola® in Peru, and Cadbury Schweppes'® beverage

brands in more than 120 countries around the world. By 1997, the Company already sold 1

billion servings of its products every day, yet knew that opportunity for growth was still

around every corner.

In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy. Now well

into its second century, the Company's goal is to provide magic every time someone drinks

one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain,

drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the

globe, you can still find Coca-Cola.

From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to

the world’s most ubiquitous brand, with more than 1.4 billion beverage servings sold each

day. When people choose to reach for one of The Coca-Cola Company brands, the Company

wants that choice to be exciting and satisfying, every single time.

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PRESENT STATUS OF THE ORGANIZATION

Asia will be the biggest driver of Coca-Cola’s growth over the next 10 years, the head of the

world’s biggest beverage company said, adding that the company had lost out by not

investing enough in the region in the past. “Asia is at the core,” Neville Isdell, the chairman

and chief executive of the Atlanta, Georgia-based Coca-Cola Co., said. The company said its

worldwide unit-case volume sales grew 6%—the highest rate since 2002. Isdell said Coca-

Cola has invested more than $1 billion (Rs4, 100 crores) over the last 12 months in Asia,

particularly in the Philippines, China, India and Indonesia.

Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the

successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft drink

industry rankings.

Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 per

cent, according to beverage digest-/Maxwell, a New York-based industry newsletter and data

service said. The company captured a larger share of the market even though its coke classic

brand fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3

per cent of the US soft drink market, but saw its market share drop between 1999 and 2001.

With the latest gains, it’s only 0.2 percentage points away from where it stood in 1998 at

44.5.

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FUNCTIONAL DEPARTMENTS OF ORGANIZATION

There are 6 functional departments within Coca Cola.

Marketing

Finance

Packaging

Sales

Research and development

Administration

Marketing

The Coca Cola marketing department at the Atlanta Headquarters

develops core strategies for company brands to ensure that all

communication is consistent in every market. With this cohesive effort,

the Coca-Cola system maximizes its resources for market leadership and

profitable growth. The marketing departments are responsible for

marketing the products and advertising the products and promoting the

products. If all these departments perform their duty firmly then the

objectives of The Coca-Cola Company will meets.

Finance

The finance department of the Coca Cola Company is responsible for

financial record keeping. This involves keeping records of money

received and paid out. The financial records will be used to produce

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the annual reports for the shareholders so that they can see the

company performance. The Finance department is also responsible for

the management accounts of the business like marketing etc. The

Coca-Cola Company finance department is also responsible for making

budget of the company and for each department like marketing

department or research and development department. They will also be

involved in the planning process like taking over or any major

decision.

Packaging

The packaging department of The Coca-Cola Department is responsible

for the packaging of the products. They have to make the packaging

attractive so that that product meets the eyes of the consumers.

Bringing new products package is their responsibility. It works with

the companies bottling partners to produce an attractive combination.

Sales

The sales department of the Coca Cola Company is to coordinate the

selling program. They also have to make the distribution methods, etc.

Also, decide how much to sell and how much to store in the warehouse

and to choose the transporting method which is the most cost efficient

and the quickest way.

Research and development

This department has their budget given by the finance department and

their responsibility is to investigate new products. They work closely

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with marketing by looking at marketing research findings. They have to

bring new products in the market for the change because the consumer

cannot stick with the same old products. If necessary then they also

have to improve the quality of the products. The Coca-Cola Company

research department has done a lot of research and recently they have

launched many new products like Diet coke with lemon, Fanta Tropical,

Minute maids, Fanta raspberry, Fanta blue berry etc.

Administration

This department is essential for keeping the business going. They act

as a help support of the company, it is not the central purpose the

business but every business organization would need this department.

Most businesses rely on administration to be organized. They deal with

enquiries, give messages produce documents and give information to any

customer. The complaints that this department will get would be

transferred to the research and development department to make the

product better or fix the problem that the consumer is having. These

departments are the most important department of The Coca-Cola Company

because they helps the company to meets the objectives of The

Coca-Cola Company i.e. surviving, customer satisfaction and make more

profits. As I said that the help desk department satisfies the

customer by providing the information they needs and taking the

complaints and passing to the research and development departments who

improves the products.

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ORGANIZATION STRUCTURE AND ORGANIZATION

CHART

The Coca-Cola Company has made a lot of changes in the last year with the structure of their

company from top management to the employees at the bottom of line in terms of power in

the company. In years past the Coke Company has had more of a centralized organizational

structure. Many of the most powerful people the company was tired of Ivester's cramped

management style of leadership and became concerned about his future at the company.

When Doug Daft took over as chairman and CEO of the Coca-Cola Company the

organizational structure really changed from the centralized type of structure to the

decentralized type of structure within the Coke Company. Doug Ivester was running the

show by himself and was unwilling to take advice from others and this was apparent when

Doug Daft came in to replace him as CEO. The centralized style of management in the past

had been everyone in the main branch in Atlanta. All areas of the business from foreign

affairs in different countries and matters in the states were all centralized out of the Atlanta

building. After daft took over a Financial Requirements When the Coca Cola company wants

to put a new product on the market, buy out another company, implement new technology, or

spend money in any other area there are four ways that the company can go about doing so.

This investment is going to last over the fifteen years and is going to cost the Coca-Cola

Company millions of dollars over that time. All three of these new drinks have been put in

place to help Coca-Cola expand the company's dominance in the beverage market. Coca-

Cola can use profits from sales, sell stock, borrow money or issue bonds. s CEO He decided

that the company would be better run if there were more of a decentralized form of

management put into place. 90% of Coke's business was in the hands of powerful bottling

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companies and this balance of power as well as personal relations must be maintained to run

a successful corporation. The company also needs to make sure in the meantime that they

advertise to their consumers the importance of recycling in today's society. As the company

changed their managing structure they have put people in high management positions in all

parts of the world where the Coca-Cola Company has put in their products. Culture and

leadership Feasibility The cultural and leadership aspects of the Coca-Cola Company have

changed along with the major changes in the organization structure. One good idea would be

for the company to try and invent and produce a biodegradable bottle that would be better for

the environment. In the last six months Coke has gone out and put a lot of money in the

furthering of the company in many different ways. A good CEO or any top executive to be

successful has to be able to handle crises and let the people who are working for you know

that they are important at all levels of the company and allow everyone to see a purpose and

importance in their jobs. Any large corporation like Coke has a social responsibility to give

back some of what the consumers have given to them. By enacting a decentralized

organizational structure Coca Cola has been able to put people in the most suitable leadership

positions around the world and here in the United states that will help the Coca Cola

Company grow and become even more dominate in the future.

MAJOR SEGMENTS

Major segments are basically those people who take this drink daily and those areas where

the demands are higher then the other areas. There are so many people who take this drink

daily and those people who take weekly and those who take less often are always there as

well. So, their basic segments are those people who take this drink regularly.

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TARGET MARKET

Coke’s commercials basically based on young generations, so, the young generation is the

target market of Coke because they want to represent Coke with the youth and energy but

they also consider about the old people they take then as a co-target market.

FACTORS EFFECTING SALES

There are so many factors, which affects the sale of coke. Here we are discussing three major

factors which effects coke.

Per capita income

Competitors

Weather

Per Capita Income

First we will discuss about “ Per capita income”. This is major factor that affects the sale of

this soft drink. Because which every passing year budgets are becoming very strict and tight

in order to purchase things. So the disposable incomes of the people are coming down. They

spend heavily on rents, utilities, and education and basic necessities and after that when they

get extra money they think about this soft drink .So the decreasing per capita income effects

badly in selling and production of this soft drink. And to get through with this difficulty there

is need to increase the level of per capita income of Pakistan because it is much lesser than

the rest of the countries.

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Competitors

Coke’s major competitor is “PEPSI” and there is no hesitation to say these because every one

knows that and all the other cold drinks and water, coffee, tea are the competitors.

Weather

Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped

market so the coke’s consumption in summers is 70% and in winters is 30%.

MAJOR CUSTOMERS NEED

First of all the majority don’t care that what they are going to have. In other words, they

don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t actually

differentiate between these two brands in order to their tastes.

Consumers basically drink what they get.

They believe on “WHAT COLD THEY SOLD”

Consumer’s availability in brands is basically works like:

Push availability

Pull consumer’s demand.

For this reason Coca-Cola have provided their coolers and freezers in the market. They have

maximum number of coolers and freezers in the market. They provide this infrastructure free

of cost just to provide child coke to their customer, which they want to be purchase.

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Their salesman and mechanics regularly visit all the shops where coke has its infrastructure

to check that either it is in proper condition or not, if not then they immediately change or

repair it.

STRATEGIES OF GETTING GOALS I.E. “HIGH PROFITS”

To increase the price is the least thing, which Coke can adopt. There are so many ways

through which Coke can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?

Coke can increase the volume by expanding the industry of coke. Through advertisements,

offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?

Coke is increasing the interest level of consumers by offering different flavors. For example

Coke is increasing the number of flavors in “Fanta”, this is one of

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the product of coke. Through offering different flavors Coke can increase the Level of

consumers and through this profits can be gained.

How to take part in energetic events?

Coke is already taking part in the events like “world cup cricket” since last many years. Coke

offers different attractive things in their events and through this Coke gained high profit and

consumption of coke increased on these occasions.

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PRODUCTS OF COCA-COLA

Coca-Cola serves in India some of the most recalled brands across the world,

Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with

The Schweppes product range.

 

The acquisition of Thums Up brought some of the leading national soft drinks like

Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to

This, Kinley mineral water was launched in the year 2000.

 

The Company ranking up "firsts" in the introduction of Canned and PET soft

drinks, vending machines and backpack dispensers for crowds of cricket supporters.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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COCA COLA BEVERAGES

  

  

BRANDS: 

     Thums up          

·       Maaza

·       Sprite

·       Fanta  

·       Coca cola 

·       Kinley

·       Sun fill               

·           

COCA   COLA  

  SLOGAN: -

 “THANDA MATLAB COCA- COLA” “JO CHAHE HO JAYE COCA-COLA ENJOY”

“SAR UTHA KE PIYO”

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 The world`s famous drink, the world 1s most valuable brand. he most recognizable word

across the world after OK .Coca Cola has truly remarkable heritage. Developed in a brass pot

in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to

mention the best selling soft drink in the world.

 

In India .Coca Cola was the leading soft-drink till 1977 when government policies

necessitated its departure.Coca Cola made its return to the country in 1993 and made

significant investments to ensure that the beverage is available to more and more people,

even in the remote and inaccessible parts of the nation.

   

THUMS-UP

SLOGAN: -

“I WANT MY THUNDER"

 

"THUMPS UP TASTE THE THUNDER"

 

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Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in

1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. 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.Coca Cola has also

launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto

Contest  to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and

distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.

 

     

 

MAAZA      

SLOGAN: -  

"Taaza Mango, Maaza Mango"

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     "Botal mein Aam, Maaza hain Naam".

 

 

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. It is available in SKUs of 200ml RGB,

250ml RGB, 125ml Tetrapak and 200ml Tetrapak 

 

     

SPRITE 

SLOGAN: -        "SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS"  

  "DHIKAWE PE MAT JAO APNI AKHAL LAGAO”

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In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. 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 is available around the country in 200ml,

300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.

 

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

Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste

encourages the today’s youth to trust their instincts, influences them to be true to who they

are and to obey their thirst.

   

FANTA

SLOGAN: -   

“KUCH BH1 HO SAKTA HAI” 

“MASTI KA APNA TASTE”    

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Internationally, Fanta - The 'orange' drink of The Coca-Cola Company

is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year

1993. Perceived as a 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 in the moment. This positive imagery is associated with happy, cheerful and special

times with friends. Over the years Fanta has occupied a strong market place and is identified

as “The Fun Catalyst”.

 

Fanta advertising over a time has the biggest association with fun and friends that have

reflected through past TV commercials like “Masti ka Apna Taste,Bajao Masti”.

LIMCA  SLOGAN: -  

“JUST TAKE IT EASY” 

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 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 flavour soft drink in the country.

 

 

 The success formula   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. 

 

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

be the leading flavour soft drink in the country.

 

 

    

SUNFILL

  

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

We have kept in mind the Indian palate ( Taste / Sweetness /Sourness /Orange

flavour ) .Sunfill is also present in other countries, either in the form of a fruit n juice based

drink, or in the powdered concentrate 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 in mind the affordability factor and the competition, Sunfill is available in three

variants-Sunfill Regular, Sunfill Anand and Sunfill Tarang.

     

  

KINLEY 

SLOGAN: -  

 “Boond Boond Mein Vishvaas”.

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  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. Kinley water understands the importance and

value of this life giving force. Kinley water thus promises water that is as pure as it is meant

to be. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis

along with the latest technology to ensure the purity.

 

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CHAPTER 3

MARKETING

STRATEGIES OF

COCA COLA

Our local marketing strategy enables Coke to listen to all the voices around the world asking

for beverages that span the entire spectrum of tastes and occasions. What people want in a

beverage is a reflection of who they are, where they live, how they work and play, and how

they relax and recharge. Whether you're a student in the United States enjoying a refreshing

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Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a

couple in Korea buying bottled water after a run together, we're there for you. We are

determined not only to make great drinks, but also to contribute to communities around the

world through our commitments to education, health, wellness, and diversity. Coke strives to

be a good neighbor, consistently shaping our business decisions to improve the quality of life

in the communities in which we do business. It's a special thing to have billions of friends

around the world, and we never forget it.

PRICE STRATEGY

Trade Promotion

Coca Cola Company gives incentives to middle men or retailers in way a that they offer them

free samples and free empty bottles, by this these retailers and middle man push their product

in the market. And that’s why coca cola seen more in the market. And they have a good sale

in the market because according to the expert which product seen more in the market that

sells more.

They do agreements with a shop keepers and stores to exclusive sale in that store. These

stores are called as KEY accounts in their local language.

And coke also invest heavy budget on these stores and offers them free samples and free

bottles and some time cash incentives.

Different Price In Different Seasons

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Some times Coca Cola Company changes their product prices according to the season.

Summer is supposed to be a good season for beverage industry in India.

So in winter they reduce their prices to maintain their sales and profit. But normally they

reduce the prices of their pet bottles or 1 litter glass bottle.

PROMOTION STRATEGIES

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that

shelves in that style which show their product more clear and more attractive for the

consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-

catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion

Company also do sponsorships with different college and school’s cafes and sponsors their

sports events and other extra curriculum activities for getting market share.

UTC Scheme

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UTC mean under the crown scheme, coca cola often do this type of scheme and they offer

very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This

scheme is very much popular among children.

DISTRIBUTION CHANNELS STRATEGY

Coca Cola Company makes two types of selling

Direct selling

Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports. They have

almost 450 vehicles to supply their bottles. In this type of selling company have more profit

margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very difficult for

them to cover all area of Pakistan by their own so they have so many whole sellers and

agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these

includes:

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Visi cooler

Freezers

Display racks

Free empty bottles and shells for bottles

ADVERTISEMENT STRATEGY

Coca Cola Company use different mediums

Print media

Pos material

TVs commercial

Billboards and holdings

Print Media

They often use print media for advertisement. They have a separate department for print

media.

POS Material

Pos material mean point of sale material this includes: posters and stickers display in the

stores and in different areas.

TV Commercials

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As everybody know that TV is a most common entertaining medium so TV commercials is

one of the most attractive way of doing advertisement. So Coca Cola Company does regular

TV commercials on different channels.

Billboards and Holdings

Coca cola is very much conscious about their billboards and holdings. They have so many

sites in different locations for their billboards.

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CHAPTER 4

PROFILE OF

ORGANIZATION

COMPETITORS

PepsiCo, Inc. is one of the world's top consumer product companies with many of the

world's most important and valuable trademarks. Its Pepsi-Cola Company division is the

second largest soft drink business in the world, with a 21 percent share of the carbonated soft

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drink market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola,

Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market.

The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40

percent market share and an even more staggering 56 percent share of the U.S. market. In the

United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the

top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos,

Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net

sales and more than two-thirds of the parent company's operating profits. The company's

third division, Tropicana Products, Inc., is the world leader in juice sales and holds a

dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis,

PepsiCo's product portfolio includes 16 brands that generate more than $500 million in sales

each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners

about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed

in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As

2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of

the Quaker Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n

Crunch, Life, and other ready-to-eat cereals.

When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic

response convinced him that he had created a commercially viable product. For 20 years,

'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a

dilemma; the crucial decision he made turned out to be the wrong one and he was forced to

sell. But his successors fared no better and it was not until the end of the 1930s that Pepsi-

Cola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth

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multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level

was almost entirely the result of its management style and the phenomenal success of its

television advertising.

Doc Bradham, like countless other entrepreneurs across the United States, was trying to

create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every

state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina,

Bradham gave the name Pepsi-Cola to his most popular flavored soda. Formerly known as

Brad's Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other

flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Cola's

method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then

shipped it in barrels to the contracted fountain operators who added the soda water. He also

bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his

attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark,

ran his first advertisement in a local paper, and moved the bottling and syrup-making

operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were

produced in 1904.

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CHAPTER 5

ADVERTISING AND SALES PROMOTION

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ADVERTISING

‘As defined by the American Marketing Association (AMA), Advertising is ay from of non-

personal presentation of goods, services or ideas for action, openly paid for by an identified

sponsor.’

Advertising today is a worldwide phenomenon. It is important at the outset to recognize that

many advertisers use advertisements for many purposes with many different possible effects.

Advertisements can be recognized s paid non-personal communication forms used with

persuasive intent by identified sources through various media. Advertising are most

commonly associated with the mass media of newspapers, magazines, cinema, television,

and radio, although they frequently flourish in the other forms such as billboards, poster, and

direct mail as well and finally advertisements are overwhelmingly used with persuasive

intend. That is the advertisers are striving to alter our behavior and or levels of awareness,

knowledge and attitude, and so on in a manner that would be beneficial to them.

BASIC FEATURES OF ADVERTISING

On the basis of various definitions it has certain basic features such as:

1. It is a mass non-personal communication.

2. It is a matter of record.

3. It persuades buyers to purchase the goods advertised.

4. It is a mass paid communication.

5. The communication media is diverse such as print (newspapers and magazines)

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WHO’S INVOLVED

Advertising can be thought of as a five-part business.

Advertisers who something use

Advertising agencies and are sometimes assisted by

Support Organizations sent their messages through

Media(generally mass) to potential

Consumers of the product, service.

Advertising is a key part of marketing, but far from being (as is often assumed) the sum of it.

Advertising is the use of media to inform consumers about something and or to persuade

them to do something in effect; it brings product and consumers together, and then modulates

the relationship between them.

WHAT IS ADVERTISING

It is a mass communication of information intended to persuade buyer to buy product with a

view of maximizing a company’s profits. The elements are.

It is a Mass Communication reaching large number of customers.

It makes mass production possible. (Helps the company reach economics of scale).

It is a non-personal communication.

It is a commercial communication.

It is speedy communication.

In today’s competitive world. It is an essential communication.

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FUNCTIONS OF ADVERTISING

For many firms advertising is the dominant element of the promotional mix – particulars for

those manufacturers who produce convenience goods such as detergent, non – prescription

drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by

maters of automobiles, home appliances, etc, to introduce new product and new product

features its uses its attributes, pt availability etc.

Advertising can also help to convince potential buyers that a firm’s product or service

is superior to competitor’s product in make in quality, in price etc. it can create brand image

and reduce the likelihood of brand switching even when competitors lower their prices or

offer some attractive incentives.

Advertising is particularly effective in certain other spheres too such as:

i) When consumer awareness of products or service is at a minimum.

ii) When sales are increasing for all terms in an industry.

iii) When a product is new and incorporates technological advance not strong and.

iv) When primary buying motive exists.

It performance the following functions:

Promotion of sales

Introduction of new product awareness.

Mass production facilitation

Carry out research

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Education of people.

TYPES OF ADVERTISING

Broadly speaking, advertising may be classified into two categories viz., product and

institutional advertising.

Product Advertising:

The main purpose of such advertising is to inform and stimulate the market about the

advertiser’s products of services and to sell these. Thus types of advertising usually promote

specific, trended products in such a manner as to make the brands seam more desirable. It is

used by business government organization and private non-business organizations to promote

the uses features, images and benefits of their services and products. Product advertising is

sub-divided into direct action and indirect action advertising, Direct action product

advertising wages the buyer to take action at once, ice he seeks a quick response to the

advertisement which may be to order the product by mail, or mailing a coupon, or he may

promptly purchase in a retail store in response to prince reduction during clearance sale.

Product advertising is sub-divided into direct & indirect action advertising & product

advertising aims at informing persons about what a products is what it does, how it is used

and where it can be purchased. On the other hand selective advertising is made to meet the

selective demand for a particular brand or type is product.

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Institutional Advertising:

It is designed to create a proper attitude towards the sellers to build company image

or goodwill rather than to sell specific product or service. Its purpose is to create a frame of

mind and to implant feeling favorable to the advertisers company. Its assignment is to make

friends for the institution or organization.

It is sub-divided into three categories: patronage, public, relations and public service

institutional advertising.

i) In patronage institutional advertising the manufacturer tells his prospects and

customer about himself his policies and lives personnel. The appeals to the patronage

motivation of buyers. If successful, he convinces buyers that his operation entitles

him to the money spent by them.

ii) Public relations institutional advertising is used to create a favorable image of the

firm among employees, stock-holders or the general public.

iii) Public service institutional advertising wages public support.

Other Types:

The other types are as follows:

i) Consumer advertising

ii) Comparative advertising

iii) Reminder advertising

iv) Reinforcement advertising

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ADVERTISING OBJECTIVES

The long term objectives of advertising are broad and general, and concern the

contribution advertising should make to the achievement of overall company objectives.

Most companies regard advertising main objective as hat of proving support to personal

selling and other forms of promotion. But advertising is a highly versatile communications

tools and may therefore by used for achieving various short and long term objectives. Among

these objectives are the following:

1. To do the entire selling job (as in mail order marketing).

2. To introduce a new product (by building brand awareness among potential buyers).

3. To force middlemen to handle the product (pull strategy).

4. To build brand preference 9by making it more difficult for middleman to sell

substitutes).

5. To remind users to buy the product (retentive strategy).

6. To publicize some change in marketing strategy (e.g., a price change, a new model or

an improvement in the product).

7. To provide rationalization (i.e. socially acceptable excuses).

8. To combat or neutralize competitors advertising.

9. To improve the moral of dealers and/or sales people (by showing that the company is

doing its share of promotion).

10. To acquaint buyers and prospects with the new uses of the product (to extend the

PLC).

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BENEFITS

The functions of advertisement, and that purpose its ethics, may be discussion below:

1. It leads o cheaper prices. "No advertiser could live in the highly competitive arena of

modern business if his methods of selling were more costly than those of his rivals."

2. It acquaints the public with the features of the goods and advantages which buyers

will enjoy.

3. It increases demand for commodities and this results in increased production.

Advertising :

a) Creates and stimulates demand opens and expands the markets;

b) Creates goodwill which loads to an increase in sales volume;

c) Reduces marketing costs, particularly product selling costs.

d) Satisfied consumer demands by placing in the market what he needs.

4. It reduces distribution expenses in as much as it plays the part of thousands of

salesman at a home. Information on a mass scale relieves the necessity of expenditure

on sales promotion staff, and quicker and wider distribution leads to diminishing of

the distribution costs.

5. It ensures the consumers better quality of goods. A good name is the breath of the life

to an advertiser.

6. By paying the way for large scale production and increased industrialization,

advertising contributes its quota to the profit of the companies the prosperity of the

shareholder the uplifts of the wage earners and the solution of the unemployment

problem.

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7. It raises the standard of living of the general public by impelling it to use to articles of

modern types which may add to his material well being. "Modern advertising has

made the luxuries of yesterday the necessities of today ..................... It is a positive

creative force in business. It makes two blades of grass grow in the business world

where one grew before.

8. It establishes the goodwill of the concern for the test articles produced by it and in

course of time they sell like hot cakes consumer search for satisfaction of their needs

when they purchase goods what they want from its beauty, superiority, economy,

comfort, approval, popularity, power, safety, convenience, sexual gratification and so

on. The manufactures therefore tries to improve this goodwill and reputation by

knowing the buyer behavior.

WHY & WHEN TO ADVERTISE

Advertising as a tool to marketing not only reaches those who buy, but also those

whose opinions or authority is counted for example a manufacturer of marble tiles and

building boards advertises not only to people who intend to build houses but also to architect

and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as

well as to the general public. At time it is necessary for a manufacturer or a concern to

advertise things which it does not sell but which when sold stimulates the sales of its own

product. There are concerns like electric heaters, iron etc. because the use of these increases

the demand for their products.

Advertising should be used only when it promises to bring good result more

economically and efficiently as compared to other means of selling. There are goods for

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which much time and efforts are required in creating a demand by sending salesman to

prospective buyers than by simply advertising them. In the early days of the cash register in

America it was sold by specially trained salesman who called on the prospective users and

had the difficult task of convincing them that they could no longer carry on with the old

methods, and that they urgently needed a cash register. In our country certain publishers have

found it less costly to sell their books by sending salesman from house to house among

prospective buyers than to advertise them. In these two examples the cost of creating demand

would be too high if attempted by advertising alone under such circumstances advertising is

used to make the salesman acceptable to the people they call upon to increase the confidence

of the public in the house. Naturals when there are good profits competitors will be attracted

and they should be kicked out as and when sufficient capital is available by advertising on a

large scale. Immediate result may not justify the increased expenditure but it will no doubt

secure future sales.

DESIGNING ADVERTISING CAMPAIGN:

Advertising is an organized series of advertising messages. It has been defined as "a

planned, co-ordinate series of promotional efforts built around a central theme and designed

to reach specified goals." In other words, it is an orderly planned effort consisting of related

but self – contained and independent advertisements. The campaign may appear in one more

media. It has single theme or keynote idea and a single objective or goal. Thus, "a unified

theme of content provides psychological continuity throughout the campaign while visual

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and oral similarity provides physical continuity. In short run, all campaign want pre-

determined psychological reaction in the long run, practically all campaigns have sales goal.

The series of advertisements used in the campaign must be integrated with the sales

promotional efforts and with the activities of the sales force. Campaigns vary in length some

may run only for a few days, other for weeks, yet other for a season or the entire year.

Usually a range of 3 to 6 months includes many campaigns. Many factors influences

campaign length such as competitors advertising media, policies, and seasonal falls curves of

the product involved the size of the advertising funds, campaign objectives and the nature of

the advertisers marketing programmed.

OBJECTIVES OF CAMPAIGN

The advertising campaign, especially those connected with the consumers aims at

achieving these objectives:

i) To announce a new product or improve product.

ii) To hold consumers patronage against intensified campaign use.

iii) To inform consumers about a new product use.

iv) To teach consumers how to use product.

v) To promote a contest or a premium offer.

vi) To establish a new trade regional, and

vii) To help solve a coca regional problem.

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The institutional advertising campaigns on the other hand, have these objectives.

i) To create a corporate personality or image.

ii) To build a company prestige.

iii) To keep the company name before the public.

iv) To emphasize company services and facilities.

v) To enable company salesman to see top executive consistently when making

sales calls, and

vi) To increase friendliness and goodwill towards the company.

Developing the campaign programmers. The advertising campaigns are prepared by

the advertising agencies, which work on behalf of their clients who manufacture product or

service enterprises, which have services to sell. The word campaign is used because

advertising agencies approach their task with a sum Blanca of military fanfare in which one

frequently hears words like target audience logistics, zero in and tactics and strategy etc.

The account executive co-ordinates the work in a campaign. The creation of an

advertising campaign starts with an exploration of consumer’s habits and psychology in

relation to the product. This requires the services of statistical trained in survey techniques

and of others trained in social psychology. Statisticians select samples for survey which are

done by trained interviewers who visits individuals, included in the sample and ask question

to find out about their taste and habits. This enquiry often leads to a change in a familiar

product. For instance bathing soap may come in several new colors or cigarette in a new

packet or talcum powder in another size.

Such interviews are often quite essential to find out the appeal of advertising message

for a product that would be most effective with consumers.

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After getting the data the account executive puts together the essential elements of his

clients brief, interprets the research findings and draws up what he calls the "advertising

strategy".

STAGE IN ADVERTISING CAMPAIGN

Several steps are required to develop an advertising campaign the number of stages

and exact order in which they are carried out may vary according to organizations resources,

the nature of its product and the types of audiences to be reached. The major stages/steps are:

1. Identifying and analyzing the advertising.

2. Defining advertising objects.

3. Creating the advertising platform.

4. Determining the advertising appropriation.

5. Selection media plan.

6. Creating the advertising message.

7. Evaluating the effectiveness of advertising.

8. Organizing of advertising campaign.

1. Identifying & Analyzing the Advertising target:

Under this step it is to decided as to whom is the firm trying to reach with the

message. The advertising target is the group of people towards which advertisements are

aimed at four this purpose complete information about the market target i.e. the location and

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geographical location of the people, the distribution of age, income, sex, educational level,

and consumers attitudes regarding purchase and use both of the advertising product and

competing products is needed with better knowledge of market target, effective advertising

campaign can be developed on the other hand, if the advertising target is not properly

identified and analyzed the campaign is does likely to be effective.

2. Determining the advertising objectives:

The objectives of advertisement must be specifically and clearly defined in

measurable terms such as "to communicate specific qualities about a particulars product to

gain a certain degree of penetration in a definite audience of a given size during a given

period of time", increase sales by a certain percentage or increase the firm’s market shares."

The goals of advertising may be to:

i) Create a favorable company image by acquainting the public with the services

offered available to the employees and its achievements.

ii) Create consumers or distributor awareness by encouraging requests providing

information about the types of products sold; providing information about the

benefits to be gained from use of the company's products or services; and

indicating how product (or services) can be used;

iii) Encourage immediate sales by encouraging potential purchasers through

special sales contests, getting recommendation of professional people about

company's products etc.

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iv) It secures action by the reader through associating ideas, repetition of the

same name in different contexts, immediate action appeal.

3. Creating the Advertising platform:

An advertising platform consists of the basic issues or selling points that an advertiser

wishes to include in the advertising campaign. A single advertisement in an advertising

campaign may contain one or more issues in the platform. A motorcycle producers

advertising platform should contain issues which are of importance to consumers filling and

such issues also be those which the competitive product do not posses.

4. Determining the Advertising Appropriation:

The advertising appropriation is the total amount of money which marketer allocates.

For advertising for a specific time period. Determining the campaign budget involves

estimating now much it will cost to achieve the campaigns objectives. If the campaign

objectives are profit relating and stated quantitatively, then the amount of the campaign

budget is determined by estimating the proposed campaigns effectiveness in attaining them.

If campaigns object is to build a particular type of company image, then there is little basis

for predicting either the campaigns effectiveness or determining the budget required.

5. Selecting the Media:

Media selection is an important since it costs time space and money various factors

influence this selection, the most fundamental being the nature of the target market segment,

the type of the product and the cost involved. The distinctive characteristics of various media

are also important. Therefore management should focus its attention on media compatibility

with advertising objectives.

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Media Form

1. Press Advertising or Print

i) Newspapers City, Small town, Sundays, Daily,

weekly, Fortnightly, quarterlies,

financial and annuals, English,

vernacular or regional languages.

ii) Magazines General or special, illustrated or

otherwise, English, Hindi,

Regional language.

iii) Trade & Technical Journals, Industrial year

books, commercial, directories, telephone,

Directories, references books & annuals.

Circulated all over the country and

among the industrialist and

business magnates.

2. Direct Mail Circulars, catalogues, leaflets,

brochures, booklets,

folders,colanders, blotters, diaries

& other printed material.

3. Outdoor or Traffic Poster and bills on walls, railways

stations platforms outside public

buildings.

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SALES PROMOTION

While advertising explains the logics behind buying, sales promotion offers can incentives to

do so. Sales promotion operates at three levels.

At the level of consumer it is called consumer promotion e.g. free gifts, samples and

price offs.

At the level of dealers and distributors, it is allied trade promoting e.g. free goods

display contests, dealer sales contest, push money etc.

At the level of sale person it is called sales force promotion e.g. salesmen’s contest,

benches, sales rallies.

Conjunctionally the glamour in sales promotion is stolen by advertising. Advertising

expenses so far accounted for more than 60% of the total promotional budget.

Today sales promotion are rising rapidly with more and more bands flooding the market, the

pressure to occupy display space at retail outlet is more and retailers thus demand more sales

promotion efforts from their suppliers.

 

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CHAPTER 6

DISCUSSIONS ON

TRAINING

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STUDENT’S WORK PROFILE

I was appointed in coke as a supervisor. My role & responsibilities were:

Sales promotion

Making the Distribution strategies.

Checkout the all freezes which are provided by coke.

Find the advertising places.

Survey of the target market.

Find out the competitors strategies in the market.

To giving the knowledge of schemes of coke to retailers.

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DESCRIPTION OF LIVE EXPERIENCES

To learn about the sales strategy

To learn that how to increase sales volume

To learn how to treat retailers

To learn about the market demand

To learn about the sales promotion and distribution

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CHAPTER 8

STUDY OF RESEARCH

PROBLEM

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STATEMENT OF RESEARCH PROBLEM

This project report takes into account the Various MARKETING STRATEGIES adopted by COCA COLA.

STATEMENT OF RESEARCH OBJECTIVES

This project takes a look that what type of marketing strategy adopted by coke. The two

major global players i.e. Pepsi and Coca-Cola dominate the soft drinks industry in India.

The objectives of the project are to study the importance of advertising and sales promotion

schemes in the soft drinks industry.

The project takes a view on:-

What is advertising?

The relevance of Advertising and sales promotion in soft drink industry.

Role of Advertising in the Modern Business.

The study also keeps in mind various theories like DAGMAR & AIDS and their relevance in

today’s changing scenario.

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RESEARCH DESIGN AND METHODOLOGY

The project will involve a study of Advertisements and sales promotions schemes of the soft

drinks industry. The study will include following parameters.

Top of the mind recall.

Brand awareness about an advertisement.

The use of celebrity in a particular campaign and their impact.

The mode of the data collection would include both primary and secondary.

The impact of sale promotion schemes would measure on:

Their visibility.

Recall value of a post schemes.

Acceptability of the current scheme by the customers and sales force.

For this purpose both primary and secondary data would be collected.

For clarification certain annexure of ads and sales promotion schemes are added in the end.

The project work started with the collection of secondary data from various sources such as

newspaper, magazines, journals and web sites. Along side two questionnaires were also

prepared one aimed at consumers and the other aimed at retailers together primary data,

regarding the influence and effect of Advertising and sales promotion schemes on the sales of

soft drinks (Carbonated Soft drinks).

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This research includes:

Problem identification

Scope of study

Objective of study

Research design

Sampling plan

Method of data collection

Sources of data collection

Limitations

1. Problem Identification:

Marketer should be aware of the perception of customer about his product so that he

can gain maximum out of it. He should be aware of who are decision maker as well as

ultimate buyer of product.

2. Scope of study:

The scope of this study is kept within the control of individual researcher.

3. Research Design:

The method adopted for research is “Experience Survey” i.e. survey of people who

have practical experience of soft drinks in Faridabad, NCR in such a research design the

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decision regarding what, where, whom, how much, by what means are concerned. It is the

blue print for the research undertaken.

Measurement and Scaling Technique for Research:

In this research the rating scale technique is used. Rating scale involves qualitative

description of a limited no of aspects of thing or of traits of a person. In rating scale we judge

properties of objects without reference with other similar object.

The ranking can be done by graphic rating scale as:

Like very much

Like some what

Natural

Dislike some what

Dislike very much

5. Sampling Plan:

It includes sample unit, sample size, sample procedure.

Sample Unit: Sample unit is target population of AGRA.

Sample size: Research is done on 200 respondents of AGRA.

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6. Method of data collection:

Observation method

Questionnaire method

Data collection through journal, magazines

Data collection through websites of various Soft Drink’s related companies.

7. Sources of data collection:

Primary sources: Sample survey of target population

Secondary sources: Company pamphlet’s, different journal such as A+M, Business

magazine as business world, business India, industry manual and web sides.

8. Limitations of Study:

Resources for collection of data are less.

Time period for data collection is short

Difficult to get response from customer.

Experience in field of research is difficult job.

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CHAPTER 8

ANALYSIS OF

DATA

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ANALYSIS OF CONSUMER

Which brand of soft drink you prefer?

39

61

Sales

PepsiCoCoca Cola

When asked about particular brands consumers responded the two cola’s namely Pepsi and

coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi came

second at 39%, It was also observed that cola segment was preferred by more than 70% of

the total consumers interviewed.

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Why do you prefer it?

Advertising & Schemes

29%

Preference19%

Easy Availability

31%

Price21%

When asked to the consumers responded availability of a particular brand of soft drink of the

most important in their purchase decision. Through advertising and sales promotion schemes

were also very important while making their final purchase decision as it is an impulse

purchase, consumers often related their purchase with the recall of an ad which their viewed

on television. Apart from easy availability and promotional schemes price was another major

driving factor in the purchase of a soft drink for consumers (Pet bottles prices vary).

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Others6%

Limca9%

Thums up 16%

Coke29%

Pepsi35%

Maaza5%

When you talk of soft drink advertising which all brands come to your mind (please specify in order of recall)?

When the above question was asked to the consumers they could easily recall Pepsi and

Coke ads almost equally. Though Pepsi had a very minor edge. This question also shows

Pepsi’s aggressive nature in advertising, which is its trademark the world over. Pepsi has

always been known as an aggressive advertiser and this is also true in Indian market.

Thums up was a distant third because of its continuous attacks on Pepsi.

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Do you think the advertising done by the companies affects the sales of their respective soft drinks?

Yes71%

No29%

As its is clear from the above graph that advertising as a major impact on the sales of soft

drinks most of the consumers almost 71% thought advertising has direct effect on the sales of

the soft drinks. When consumers were asked about the effect of ads on sales most of them

responded in favor. They said that ads were the most important factor in driving the sales of

any brand. Especially with the younger generation, it often drives them towards a particular

brand of soft drink due to its advertisement.

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Which from of advertising and sales promotion strategies do you think is most effective for soft drink industry?

29

8

41

139

0

5

10

15

20

25

30

35

40

45

SalesPromotionSchemes

TelevisionAdvertising

OutdoorAdvertising

Consumers think that television advertising has a major impact on the sales of soft drinks. As

television reaches maximum urban homes, which are the major market of the soft drinks,

they have a direct impact on the consumer’s behavior. Apart from that newspaper advertising

is also important. Apart from these advertising media, sales promotion schemes from the next

important strategy.

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According to you which company’s advertising are more creative and appealing?

57

43

0

10

20

30

40

50

60

PepsiCo Coca Cola

HTA, the advertising agency for Pepsi, has come up with many innovative ads in the past,

creating a good impression in the mind of consumers. Most of the consumers interviewed

responded that they like Pepsi ads more than that of Coke. Recently Coke has also come up

with few ads, which are specifically by the consumers.

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ANALYSIS OF RETAILERS

Type of business

Sweet Shops27%

Provisons Stores45%

Eatery22%

Others6%

To conduct the research a number of Retail Outlets were visited these retail outlet included

provisions stores, eateries, sweets shops, tea stalls, Dhabas etc. Out of these it was found that

provision stores of the local market where the major sellers of the soft drinks and consumers

usually preferred to buy soft drinks from their local grocery store.

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Which segment of soft drink consumer generally asked for? (Rank them on scale 1, 2, 3)1 is max. 3 is min.

51

27

14

4 4

0

10

20

30

40

50

60

Cola Orange CloudyLemon

ClearLemon

Others

As it is an apparent from the above graph when asked about which segment the consumers

generally asked for the retailer’s respondent that Cola by itself was the largest selling soft

drink amounting to 61% of total soft drink sales. Orange came a distant second at 17%

followed by cloudy lemon, which constituted another 14%.

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Why do think that a consumer ask for a particular brand of soft drink?

Price21%

Availbility23%Brand

Prefrence17%

Advertising &

Promotion39%

The consumer preferences are very fragile and not firm. Consumers’ preference usually

changes with the various schemes and the advertising. Which has major impact on their

purchase decision? Price is another critical factor on which the consumer purchase

decision is based. It is often found that the consumers change their preference in

accordance with various price discounts offered to them. Availability is another major

aspect, which decides the actual purchase. A consumer may change his or her preference

based in the fact that which brand is available chilled at that moment.

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Major sale of soft drink is due to?

38

25

16

21

0

5

10

15

20

25

30

35

40

Availability Price BrandName

Scheme

Though advertising and sales promotion act as a major tool to attract customers for the

purchase of the particular soft drink, but it is actually the availability that is by far the

most important factors, which drive the sale. Apart from availability the price factor is

again cited as an important factor in the actual sale of the soft drinks. Apart from these

various schemes and sales promotion activities under taken by the company also acts as

sources of sale. The brand preference and loyalty is by far the least important factor

driving the sale.

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What are the attributes that influence you to decide which brand of soft drink to keep? (Rank them on scale of 1-4).

12

18

43

27

0

5

10

15

20

25

30

35

40

45

50

CompanySupport

ConsumerPull

PromotionalSchemes

BrandName

The attributes that influence a retailer to keep a particular brand of soft drink are pro

motional schemes brand name consumer pill and company support. Out of these factors

promotional scheme again is the major factor that influences any retailer to keep the stock

of particular brands. Apart from this consumer pull and brand name acts are the major

influencers for the retailers to keep stork of a particular soft drinks. One more factor

which affects the retailers to keep stock of particular soft drinks is the company support

which is provided in from of visi coolers, banners, sign boards etc. through the kind of

company support provided by the majors is almost the same.

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Does the promotional scheme of the company have any effect on the sales of soft drinks brands?

Yes71%

No29%

As sighted in the above analysis, sale of any soft drink is very much affected by the

promotional schemes provided by the company to the retailers. These schemes act as the

push towards the sales for any soft drink brands.

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CHAPTER 9

SUMMARY AND

CONCLUSIONS

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SUMMARY OF LEARNING EXPERIENCE

SWOT ANALYSIS

 

 

The overall evaluation of a company’s Strength, Weakness, Opportunities and Threats is

called SWOT Analysis.

The SWOT Analysis is further divided into two parts :-

 

Internal environment analysis

External environment analysis

 

Internal environment analysis (analysis of strength and weakness)

            It is one thing to discern attractive opportunities and another to be able to take

advantage of these opportunities. Each business unit needs to evaluate its internal strength

and weakness.

          As the research is conducted following strength and weakness of the Coke Company is

found.

 

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Strength

1. Good company image.

2. Well trained and experience workers and executives are available.

3. Strong distribution network.

4. Brand 'Thums-Up' alone cover the big market. Adopted two types of distribution

channels (Direct route and indirect route).

5. Effective sales promotion schemes and commission to salesman on achieving target.

6. Effective executive team.

Weaknesses

1. Less personal contacts with retailers.

2. Service is not good.

3. Company officials do not visits outlets regularly.

4. Fewer advertisements Channels.

5. Bad and delay in claim settlement.

6. No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc.

7. Less availability of dealer board, glow signboard, painting etc. 

 

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 Opportunity

 

1. High growth rate for fruit drink market.

2. Rural area has a great population of youths in U.P.

3. Rural area has good market share of  PepsiCo in India.

4. Therefore there is a need only of marinating this share in future.

5. Targeting the upper middle class for home take segment.

  Threats

 

 

 

1. High growth of competitor's products.

2. Better facilities provided by the competitor to their distribution this might lead to

switch over to slice distribution towards competitors.

3. Indifference among distributor and fat dealers.

4. Different effective promotion schemes of competitors.

 

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CONCLUSIONS AND RECOMMENDATIONS

CONSUMER PERCEPTIONS

Soft drinks come under the category of products purchased on impulse. Through the

markets is marred by brand loyalty the purchase decision itself is a low involvement

decision. This attitude of impulse buying is slowly changing to occasion-led-buying

and also to some extent to consumption through home refrigerator particularly in

urban areas.

The market is slowly moving from non-alcoholic carbonated drinks to fruit based

drinks and also to plain bottled water due to lower price and ready availability.

Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling

and not having access to hygienic water reach out for soft drink. This accounts for a

large part of the sales.

Brand awareness plays a crucial role in purchase decisions.

Consumers prefer convenient and economy products.

Availability in the chilled from affects the purchase decision. This has made both

companies to push its sales and to increase its retail distribution by offering Visi

Coolers to retailers.

While there is no restriction on consumption of soft drinks by any age group, the

main consumers of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But brand

loyalty is high in the case of kids and people in the age group of 20-30 years.

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Consumers are sensitive to the outlay where the purchase of beverages is concerned.

Hence the market is price sensitive.

Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea,

coffee or other drinks like sharbat and squashes.

Per capita consumption in India is among lowest in the world at 5 bottles per annum

compared to 80 bottles in Thailand and 800 bottles in USA.

Delhi market has highest per capita consumption in the country with 50 bottles per

annum compared to 5 bottles for the country.

RETAILERS PERCEPTIONS

Retailers stated that the consumers are loyal to the particular segment of the soft

drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each

segment is concerned, it is not very significant.

43% of the retailers surveyed told that in soft drinks advertising is the key

component in driving sales. While 32% stated promotional schemes and 20%

brand loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is

concerned, the retailer push becomes a critical issue. They usually sell the product

in which they get the maximum benefit. For this, the companies try to offer them

higher margins

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SUGGESTIONS 

                    Although it is very early to suggest any thing to such a internationally renounced

company like Coca-Cola having in the mature stat e of marketing yet for the local market,

client distributors & retailers, based on the interactions & feed backs from various outlets,

segments of customers I would like to suggest as under:

 

Company should promote good and heart felt Slogans and Jingles.

Company should provide others small advertising items in the form of garlands,

hangers recto the shopkeepers as there are cheap and Q good source of advertising.

Company should sponsor important event like World cup, Asian & other tournament,

any event related to film awards and programmers of local importance.

Company, If possible should give schemes to the customers through newspapers

having provision for discounts in purchasing its products.

Company should organizing campaigns & distributes caps, Key rings, glasses,

serving tray, pussels on which company packages are branded.

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Chilling equipments should provide on a cost basis.

Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be

provided to the outlets

If there is any default found in the chilling equipment provided by the company

should be repaired quickly when so required.

Company should ensure good supply of stock.

Company should go for more monopoly counters.

Company should give discount with every crate as is being done by Pepsi.

There should be surprise check by the company to endure whether benefits of

schemes provided by the company reach outlets or not and take corrective measures

in case of default.

Company should arrange seminars and meetings with dealers on an ongoing basis on

monthly interval.

Shopkeeper feedback should be taken in regular manner.

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A special shopkeeper’s care cell should be formed to listen the shopkeeper’s

grievance on the lines of customer care cell.

No. of hoardings should be increased.

Flexibility in the allot of monopoly items should be encouraged.

. Some free gifts should also be given on established Brands to stimulance the retailer.

  Company should elaborate public announcement on important days like Health day,

Anti drug day world aids day etc.

Company should tap colleges and school canteens. They should be given extra

discounts as these outlets give potential long run customers to the company.

Company should provide Tables, Chairs wall clocks, stands, openers to the retailers

as f or them type of free gifts are significant and they promote those company's

products who provide such items to them

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CHAPTER 10

ANNEXURES

QUESTIONNAIRE FOR CONSUMERS

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Name: Sex:

Age Location:

1) Which Company brand’s of soft drink do you prefer?

a) Coca Cola b) Pepsi

2) Why do you prefer it?

a) Adv. & promotion schemes b) Preference

c) Price d) Easy Availability

3) Which form of advertising and sales promotion strategies do

you think is most effective for soft drink industry?

a) Television Advertising b) Newspaper Advertising

c) Outdoor Advertising d) Sales promotion schemes

4) According to you which company’s advertising are more

Creative and appealing?

a) PepsiCo b) Coca-Cola

5) Do think the advertising done by the companies affects the

sales of their respective soft drinks?

a) Yes b) No

6) When you talk of soft drink advertising which all brands come to

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your mind? (Please specify in order of recall)

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QUESTIONNAIRE FOR RETAILERS

1) Type of business is:

a) Provision store b) Hotel

c) Sweet Shop d) Dabha

e) Tea Stall f) Any Other….

2) Which segment of soft drink consumer generally asked for?

a) Cola b) Orange

c) Clear lemon e) Cloudy Lemon

e) Others……………

3) Why do think that a consumer ask for a particular brand of soft drink?

a) Adv. & Promotional Activities b) Brand Preference

c) Easy Availability d) Price

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4) Major sale of soft drink is due to?

a) Availability b) Price

c) Brand Name d) Promotion Schemes

5) What are the attributes that influence you to decide which brand of soft drink to keep?

(Rank them on scale of 1-4).

a) Company Support b) Consumer Pull

c) Brand Name d) Promotion Schemes

6) Does the promotional scheme of the company have any effect on the sales of soft

drinks brands?

a) Yes b) No

BIBLIOGRAPHY

REFERENCES

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BOOKS:-

Kottler Philip : Marketing Management

Chunawall S.A. : Essentials of Marketing Research

Kothari C.R. : Research Methodology

Sherlerkar S.A. : Marketing Management

Schiff man Leon. G. : Leslie Lazar Kaunk

Magazines

Business world Coca-cola company booklet Pepsi company Booklet

Websites

www.coca-cola.com www.pepsi.com www.pepsico.com www.google.com

Newspaper

Times of India Economic Times

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