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

customer
India”
Cola
PROJECT REPORT ON
COCA-COLA
COMPANY
SUBMITTED
BY:
• MUTHU KUMARAN (94)
• NIDA MAJEED (103)
• RAGHAV KUMAR (125)
• RAHUL KALIA (126)
• RAHUL NAGPAL (127)
• SIMRAN KAUR PAHUJA (192)
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SU
BMITTED
TO:
DR
. KARTIK DAVE
CONTENTS
EXECUTIVE
SUMMARY
- PAGE 2
CHAPTER 1 INTRODUCTION
- PAGE 4-6
CHAPTER 2 INDUSTRY PROFILE

- PAGE 7-11
CHAPTER 3 COMPANY PROFILE

- PAGE 12-63
COCA-COLA COMPANY
- PAGE 13-17
GLOBAL MARKET SHARE OF COCA-
COLA
- PAGE 17-18
TRENDS AND
FORCES
- PAGE 19-22
POTER’S FIVE
FORCES
- PAGE 22-29
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PESTLE
ANALYSIS
- PAGE 29-33
SWOT
ANALYSIS
- PAGE 33-40
COCA-COLA INDIA
- PAGE 41-42
PRODUCTS IN
INDIA
- PAGE 42-46
MARKETING MIX
- PAGE 49-58
PESTLE
ANALYSIS
- PAGE 58-62
SWOT
ANALYSIS
- PAGE 60-62
CHAPTER 4 RESEARCH METHODOLOGY

- PAGE 63-68
CHAPTER 5 DATA ANALYSIS

- PAGE 69-79
CHAPTER 6 SUGGESTIONS AND CONCLUSION

- PAGE 80-82
BIBLIOGRAPH
Y
- PAGE 83
ANNEXURE
- PAGE 84-85
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EXECUTIVE
SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the
history and current scenario of the Coca-Cola Company globally and locally.
The first part of the study takes us through the present state of affairs of the
beverage industry and Coca-Cola Company globally.
The report contains a brief introduction of Coca Cola Company and Coca-Cola
India and a detailed view of the tasks, which have been undertaken to analyze
the market of Coca-Cola i.e. we have performed Competitive, PESTLE and
SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis
of
Coca-Cola India in order to identify areas of potential growth for Coca-Cola.
We have also given a brief description of Trends and Forces that are affecting
Coca-Cola Company globally.
The main objective of this project report is to analyze and study in efficient way
the current position of Coca- Cola Company. The study also aims to perform
Market Analysis of Coca-Cola Company & find out different factors effecting
the growth of Coca-Cola. Another objective of the study was to perform
Competitive analysis between Coca-Cola and its competitors. Apart from these
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objectives this study is also conducted to understand the Customer preferences

towards various Coca-Cola products.
1.
INTRODUCTION
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INTRODUCTON
Let reason go before every enterprise,
And counsel before every action
Research is a human activity based on intellectual investigation and is aimed at

discovering, interpreting, and revising human knowledge on different aspects of
the world.
MARKETING RESEARCH
:-
Marketing research is the function that links the consumer, customer and public
to the marketer through information used to identify and define
marketing
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opportunities and problems; generate, refine, and evaluate marketing actions;

monitor marketing performance; and improve understanding of marketing as
a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and
implements the data collection process, analyzes and communicates the
findings and their implications.
- American Marketing
Association
Marketing research is about researching the whole company’s marketing
process.
- Palmer
(2000)
INTRODUCTION TO COCA-COLA
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading
manufacturer,
marketer and distributor of non-alcoholic beverage concentrates and syrups, used to
produce
nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and
canning
operators, distributors, fountain retailers and fountain wholesalers. The Company’s
beverage
products comprises of bottled and canned soft drinks as well as concentrates, syrups and
not-
ready-to-drink powder products. In addition to this, it also produces and markets
sports
drinks, tea and coffee. The Coca- Cola Company began building its global network in
the
1920s. Now operating in more than 200 countries and producing nearly 400 brands,
the
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Coca-Cola system has successfully applied a simple formula on a global scale:

“Provide a
moment of refreshment for a small amount of money- a billion times a
day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated
and
pervasive production and distribution system in the world. More than anything, that
system
is dedicated to people working long and hard to sell the products manufactured by
the
Company. This unique worldwide system has made The Coca-Cola Company the
world’s
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow,
Coca-
Cola, more than any other consumer product, has brought pleasure to thirsty
consumers
around the globe. For more than 115 years, Coca-Cola has created a special moment
of
pleasure for hundreds of millions of people every
day.
The Company aims at increasing shareowner value over time. It accomplishes this
by
working with its business partners to deliver satisfaction and value to consumers through
a
worldwide system of superior brands and services, thus increasing brand equity on a
global
basis. They aim at managing their business well with people who are strongly committed
to
the Company values and culture and providing an appropriately controlled environment,
to
meet business goals and objectives. The associates of this Company jointly
take
responsibility to ensure compliance with the framework of policies and protect
the
Company’s assets and resources whilst limiting business
risks.
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2.
INDUSTRY PROFILE
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INDUSTRY
PROFILE
A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

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
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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
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 cr. 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
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be worth Rs.143000 cr. The sector being one of the biggest sectors of the Indian
Economy
provides up to 4 million jobs. (Source: HCCBPL, Monthly
Circular)
A BRIEF- INSIGHT BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an industry, in
which
the players constantly innovate, in order to come up with better products to gain
more
consumers and satisfy the existing
consumers.
Fig 2.0 BEVERAGES IN INDIA
The beverage industry is vast and there various ways of segmenting it, so as to cater
the
right product to the right person. The different ways of segmenting it are as
follows:
Alcoholic, non-alcoholic and sports

beverages.
Natural and Synthetic
beverages.
In-home consumption and out of home on premises
consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior
citizens.
Segmentation based on the amount of consumption i.e. high levels of
consumption
and low levels of
consumption.
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If the behavioural patterns of consumers in India are closely noticed, it could be

observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury
and
that beverages have to be consumed occasionally. These two perceptions are the
biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it
is
important to address this issue so as to encourage regular consumption as well as and
to
make the industry more
affordable.
Four strong strategic elements to increase consumption of the products of the
beverage
industry in India
are:
The quality and the consistency of beverages needs to be enhanced so that

consumers
are satisfied and they enjoy consuming
beverages.
The credibility and trust needs to be built so that there is a very strong and
safe
feeling that the consumers have while consuming the
beverages.
Consumer education is a must to bring out benefits of beverage
consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-being
or
prestige relevant to the
category.
Communication should be relevant and trendy so that consumers are able to find
an
appeal to go out, purchase and
consume.
The beverage market has still to achieve greater penetration and also a wider
spread
of distribution. It is important to look at the entire beverage market, as a
big
opportunity, for brand and sales growth in turn to add up to the overall growth
of
the food and beverage industry in the
economy.
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3.
COMPANY PROFILE
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COMPANY PROFILE
M
ISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as
a
company and serves as the standard against which we weigh our actions and
decisions.
To refresh the
world...
To inspire moments of optimism and
happiness...
To create value and make a
V difference.
ISION: Our vision serves as the framework for our Roadmap and guides every aspect of our
business
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by describing what we need to accomplish in order to continue achieving sustainable,

quality
growth.
People Be a great place to work where people are inspired to be the best they can
: be.
Portfolio Bring to the world a portfolio of quality beverage brands that
: anticipate
and satisfy people's desires and
needs.
Partners Nurture a winning network of customers and suppliers, together we
: create
mutual, enduring
value.
Planet Be a responsible citizen that makes a difference by helping build and
: support
sustainable
communities.
Profit Maximize long-term return to shareowners while being mindful of our

: overall
responsibilities
.
Productivity Be a highly effective, lean and fast-moving
WINNING
: CULTURE: organization.
Our Winning Culture defines the attitudes and behaviours that will be required of us to
make
our 2020 Vision a
reality.
LIVE OUR ALUES :
V
Our values serve as a compass for our actions and describe how we behave in the
world.
Leadership The courage to shape a better
: future.
Collaboration: Leverage collective
Integrity Be genius.
: real.
Accountability If it is to be, it's up to
: me.
Passion: Committed in heart and
mind.
Diversity As inclusive as our
: brands.
Quality: What we do, we do
FOCUS ON THE well. MARKET:
Focus on needs of our consumers, customers and franchise

partners.
Get out into the market and listen, observe and
learn.
Possess a world
view.
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Focus on execution in the marketplace every

day.
Be insatiably
W curious.
ORK SMART:
Act with
urgency.
Remain responsive to
change.
Have the courage to change course when
needed.
Remain constructively
discontent.
Work
efficiently.
A
CT LIKE OWNERS:
Be accountable for our actions and
inactions.
Steward system assets and focus on building
value.
Reward our people for taking risks and finding better ways to solve
problems.
Learn from our outcomes -- what worked and what
didn’t.
BE THE BRAND:
Inspire creativity, passion, optimism and
fun. HISTORY OF COCA-
COLA
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company,
a
drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine
called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of
Vin
Mariani, a European
cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation,
Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French
Wine
Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It
was
initially sold as a patent medicine for five cents a glass at soda fountains, which were
popular
in the United States at the time due to the belief that carbonated water was good for
the
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health [9] Pemberton claimed Coca-Cola cured many diseases, including morphine
. addiction,
dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement
for
the beverage on May 29 of the same year in Atlanta Journal.
the
By 1888, three versions of Coca-Cola — sold by three separate businesses — were on
the
market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887
and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering from
an
ongoing addiction to morphine, Pemberton sold the rights a second time to four
more
businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth.
Meanwhile,
Pemberton's alcoholic son Charley Pemberton began selling his own version of the
product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other
two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold
his
beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set
out
to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors
out
of the business. Candler purchased exclusive rights to the formula from John
Pemberton,
Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim
her
signature on the bill of sale had been forged, and subsequent analysis has indicated
John
Pemberton's signature was most likely a forgery as
well.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the
current
corporation), and in 1910 Candler had the earliest records of the company burned,
further
obscuring its legal origins. By the time of its 50th anniversary, the drink had reached
the
status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias
Geffen,
after the company made minor changes in the sourcing of some
ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor
wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of C
oke
first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi,
at
the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn.
The
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original bottles were Biedenharn bottles, very different from the much later hobble-
skirt
design that is now so familiar. Asa Candler was tentative about bottling the drink, but
two
entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B.
Whitehead,
proposed the idea and were so persuasive that Candler signed a contract giving them
control
of the procedure for only one dollar. Candler never collected his dollar, but in
1899
Chattanooga became the site of the first Coca-Cola bottling company. The loosely
termed
contract proved to be problematic for the company for decades to come. Legal matters
were
not helped by the decision of the bottlers to subcontract to other companies,
effectively
becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately
at
pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly
upset
stomach
.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of
the
drink with "New Coke". Follow-up taste tests revealed that most consumers preferred
the
taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared
for
the public's nostalgia for the old drink, leading to a backlash. The company gave in
to
protests and returned to a variation of the old formula, under the name Coca-Cola Classic
on
July 10, 1985.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of
2005
they planned to launch a Diet Coke product sweetened with the artificial sweetener
sucralose,
the same sweetener currently used in Pepsi One. On March 21, 2005, it announced
another
diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and
acesulfame
potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with
vitamins
B6 , B12 , magnesium, niacin, and zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it
was
revealed that Coca-Cola would resume operations in Iraq for the first time since the
Arab
League boycotted the company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-
Cola."
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The word "Classic" was truncated because "New Coke" was no longer in
production,
eliminating the need to differentiate between the two. The formula remained
unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-
ounce
bottles sold in parts of the southeastern United States. The change is part of a larger
strategy
to rejuvenate the product's image. In November 2009, due to a dispute over wholesale
prices
of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet
Coke.
GLOBAL MARKET SHARE OF COCA-COLA
In 2009, the company generated revenues of $31 billion with $6.8 billion net income.
An
increased consumer preference for healthier drinks has resulted in slowing growth rates
for
sales of carbonated soft drinks (abbreviated as CSD), which constitutes 78% of KO’s
sales.
KO’s profits are also vulnerable to the volatile costs for the raw materials used to
make
drinks - such as the corn syrup used as a sweetener, the aluminium used in cans, and
the
plastic used in bottles. Furthermore, slowing consumer spending in Coke's large
North
American market compounds the challenge of increasing costs and a weak
economic
environment. Finally, Coca-Cola earns approximately 75% of revenue from
international
sales, exposing it to currency fluctuations, which are particularly adverse with a stronger
U.S.
Dollar
(USD).
Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market
is
growing quickly, the traditional CSD market is still large in terms of both revenues
and
volume and highly lucrative. The size and variety of KO’s offerings in the CSD
category,
coupled with the unparalleled brand equity of the Coca-Cola trademark, has allowed KO
to
maintain its share of this important market. KO has also responded to consumers’
changing
tastes with new, non-CSD product launches and acquisitions such as that of Glaceau in
2007.
Strong international growth has also more than offset a weak domestic
market.
On February 25, Coca-Cola Company announced its plan to buy Coca-Cola
Enterprises
(CCE) for $12.3 million. [7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago,
soft drink market has changedthe dramatically with consumers buying fewer soft drinks
and
more non-carbonated beverages, such as Powerade and Dasani water. Under the new
deal,
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Coca-Cola Company will take control of the bottler's North America operations, giving
the
company control over 90% of the total North America volume. In return, Coca-
Cola
Enterprises will take over Coke's bottling operations in Norway and Sweden, becoming
aEuropean-focused producer and
distributor.
In March 2010, Coca-Cola Company entered into discussions to buy the Russian
juice
company, OAO Nidan Juices. The company is 75% owned by a private equity firm
in
London and 25% by its Russian founders and controls 14.5% of the Russian juice market.
If
successful, the purchase would add to Coca-Cola's 20.5% market share, passing Pepsi's
30%
market share. The Russian juice market is estimated to be $3.2 billion dollars, and
estimates
of Nidan's purchase price are between $560-$620
million.
In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British
fruit
smoothie maker. Last year the company bought an 18% share of the company for more
than
$45 million, and recent purchases of additional shares increased Coke's stake to
58%.
In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS)
$715
million for the continued right to sell their products following the company's acquisition
of
Coca-Cola Enterprises (CCE). The deal covers the next 20 years with an option to renew
for
an additional 20
years.
TRENDS AND FORCES
The Global Economic Recession Threatens Overall

Demand:
In 2008 and 2009, the global economy has fallen into a recession. Not just the United
States
but countries from all over the world have felt the impacts of the 2008 Financial Crisis.
This
may be a problem for Coke, which derives approximately 75% of its sales from outside
North
America. Still, the company has positioned itself well in international markets
both
organically and through acquisitions, such as that of Chinese juice maker Huiyuan for
$2.4
billion. However the company was unsuccessful with its purchase of Huiyuan as it
broke
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antitrust laws in China. On March 5, 2010, Coke's CEO said that emerging markets
are
bouncing back quicker than more developed
markets.
New Aversion
to Soda Threatens Main Business:
74% of the Coca Cola Company's products are classified as carbonated soft drinks, making
it
particularly sensitive to changes in demand for CSD. Consumer demand for CSD has
been
negatively affected by concerns about health and wellness. This is true across most of
KO's
markets. There has been an increase in the number of regulations regarding CSD in
the
United States in response to the heightened desire for healthy food
consumption.
In 2006, many state public school systems banned the sale of soft drinks on their
campuses.
The C entre for Science and Public Interest proposed that a warning label be placed on
all
beverages containing more than 13g of sugar per 12-oz serving. This proposal would
affect
all non-diet, full calorie drinks produced by KO. These factors have driven a shift
in
consumption away from CSD to healthier alternatives, such as tea, juices, and
water.
Within the CSD segment consumers have been moving away from sugared drinks,
opting
instead for diet beverages, which do not generally contain any sugar or
calories.
Though KO has been somewhat slow to respond to this shift in consumer preferences, it
has
recently begun to increase its development of both diet CSD and non-CSD beverages. KO
is
faced with the task of balancing the risk of new innovations with the low growth rates
of
established brands, a predicament for manufactures throughout the beverage
industry.
Integrated Bottler Strategy Increases
Flexibility:
After CEO Neville Isdell was brought out of retirement in 2004 to revive the then
flagging
beverage maker, one of the first areas that he targeted for improvement was KO's
frayed
relations with its extensive network of bottlers. Since consolidating all company-
owned
bottlers into the Bottling Investments division, Isdell has continued to increase KO's
interest
in its bottlers through stake purchases or outright buyouts. This strategy represents
a
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weakening of the division between KO's production and distribution operations.

Isdell
believes that by combining production and distribution operations the company will
have
enhanced its ability to quickly respond to changing market conditions. In KO's 2007
Q3
Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers Philippines
(CCBPI)
for double-digit volume growth in that country. Additionally, KO has signed new
agreements
with many of its bottlers which allow them to distribute drinks produced by other
companies.
For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink
tea
made by Ferolito, Vultaggio & Sons, an American iced-tea company. Isdell sees
these
agreements as another way of taking advantage of the rapidly growing non-CSD
market.
Bottled Water Falling Out of
Favour:
In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is
emblematic
of the bottled water industry as a whole. In August 2009, the Wall Street Journal reported
that
sales of bottled water had fallen for the first time in five The combination of
years. the
recession and upper class consumers' increased environmental has lead
consciousness many
customers to cut back on bottled water in favour of tap water and reusable
containers.
Follow
ing this trend, at least one town in Washington state and one in Australia have outlawed
the
selling of bottled water within their city limits. In 2008, bottled water was the third
most
popular beverage (behind soda and milk), but compared to 2007, Americans
consumption
declined for the first time, down to 8.7 billion gallons from 8.8 billion Although this
gallons.
is a seemingly small decrease, industry experts don't expect bottled water to bounce
back
anytime soon.
Dollar Affects International

Performance:
Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD).
Although
the company is based in the US, KO derives about 75% of its operating income from
outside
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United States. Because of this, the company is very sensitive to the strength of the dollar.
As
foreign currencies weaken relative to the dollar, goods sold in foreign markets are
suddenly
worth fewer dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as
it
did in the second half of 2008 and 2009), it has a negative effect on KO's earnings.
Coca-
Cola executives expect currency fluctuations to adversely affect 3Q09 operating income
by
10-12% and 4Q09 operating income by high single
digits.
KO has broad exposure to foreign currencies and actively hedges a large portion of these
to
avoid wide swings in earnings from currency fluctuations. Although this hedging
insulates
from the potential downside of a strengthening dollar, it also limits larger gains from
drastic
downswings in the dollar's
value.
Commodity Cost Fluctuations
Affect Margins:
The C oca-Cola Company’s profitability can be affected both directly and indirectly by
the
costs of various production inputs. KO itself is responsible for purchasing the raw
materials
used to make its concentrates and syrups. Variations in the prices for these goods can
affect
the company’s total cost of production as well as its profit margins. Changes in
the
production costs of bottlers can also impact KO’s profitability, though in a more indirect
way.
If the raw materials necessary for bottling become more expensive, the bottler may be
forced
to drastically raise prices to
compensate.
S
uch a price increase would likely hurt KO, given the competitive nature of the non-
alcoholic
beverage industry, and provide a possible incentive for consumers to switch to
other
companies’
beverages.
Aluminium, corn, and PET resin are three examples of such production goods used
by
bottlers that could have significant bearing on the Coca-Cola Company’s profit margins.
In
2007, the prices of these commodities rose drastically with general commodities bubble
and
dramatically pressured margins. They receded in 2008, but the possibility of
another
Page 24
customer
India”
Cola
significant rise in Commodities represents a constant threat to

profits.
POTER’S FIVE
FORCES
RIVALRY AMONG EXISTING FIRMS:
The greatest competition that Coca-cola faces is from the rival sellers within the
industry.
Coca-Cola, Pepsi Co, and Cadbury Schweppes are among the largest competitors in
this
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customer
India”
Cola
industry, and they are all globally established which creates a great amount of
competition.
Aside from these major players, smaller companies such as Cott Corporation and
National
Beverage Company make up the remaining market share. All five of these companies
make a
portion of their profits outside of the United
States.
Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke,
Fanta,
and Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However,
Coca-
Cola has higher sales in the global market than PepsiCo, PepsiCo is the main competitor
for
Coca-Cola and these two brands have been in a power struggle for years (Murray,
2006c).
Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi
with
a market share of
21%.
According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S.
market
share has increased to 30.8%, while the Coca-Cola C ompany's has decreased to 42.7% due
to
Pepsi marketing schemes still the higher large gap between the market share can be
attributed
to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up
its
bottler's and distribution network especially in developed
markets.
"The Coca-Cola Company" is the largest soft drink company in the world. Every
year
800,000,000 servings of just "Coca-Cola" are sold in the United States alone. Bottling
plants
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customer
India”
Cola
with some exceptions are locally owned and operated by independent business people
who
are native to the nations in which they are located. Coca-Cola manufactures, distributes
and
markets non-alcoholic beverage concentrates and syrups, including fountain
syrups.
It supplies concentrates and beverage bases used to make the products and
provides
management assistance to help it's bottler's ensure the profitable growth of their
business.
This has put Pepsi at a significant disadvantage compared to US market. Overall, Coca-
Cola
continues to outsell Pepsi in almost all areas of the world. However, exceptions include
India,
Saudi Arabia and
Pakistan.
By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India
after
a new government ordered, The Coca-Cola Company to turn over its secret formula for
Coke
and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation
Act
(FERA).
In 1988, PepsiCo gained entry to India by creating a joint venture with the
Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India
Limited.
This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign
brands
was allowed. PepsiCo bought out its partners and ended the joint venture in 1994. In
1993,
The Coca-Cola Company returned in pursuance of India's Liberalization policy. In 2005,
The
Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales
in
India. Coca-Cola India's market share was
52.5%.
In Russia, Pepsi initially had a larger market share than Coke but it was undercut once
the
Cold War ended. In 1972, Pepsi Co Company struck a barter agreement with the
government
of the Soviet Union, in which Pepsi Co was granted exportation and Western
marketing
rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-
Cola.
This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in
the
Page 27
customer
India”
Cola
U.S.S.R. Pepsi, as one of the first American products in the Soviet Union, became a
symbol
of that relationship and the Soviet
policy.
Brand name loyalty is another competitive pressure. The Brand Keys Customer
Loyalty
Leaders Survey (2004) shows the brands with the greatest customer loyalty in all
industries.
Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to
their
brands. The new competition between rival sellers is to create new varieties of soft
drinks,
such as vanilla and cherry, in order to increase sales and getting new
customers.
Pepsi is however trying to counter this by competing more aggressively in the

emerging
economies where the dominance of Coke is not as pronounced, with the growth in
emerging
markets significantly expected to exceed the developed markets, rivalry in
international
market is going to be more
pronounced.
Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke,
supporting
Pepsi's positioning as "The Choice of a New Generation." In 1975, Pepsi began
showing
people doing blind taste tests called Pepsi Challenge in which they preferred one product
over
the other. Pepsi started hiring more popular spokespersons to promote their
products.
In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola
Wars,
Pepsi Stuff. Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points
on
billions of packages and cups. They could redeem the points for free Pepsi
lifestyle
merchandise. After researching and testing the program for over two years to ensure
that it
resonated with consumers, Pepsi launched Pepsi Stuff, which was an instant
success.
Tens of millions consumers participated. Pepsi outperformed Coke during the summer of
the
Atlanta Olympics, held at Coke's hometown where Coke was the lead sponsor for the
Games.
Due to its success, the program was expanded to include Mountain Dew into
Pepsi's
international markets worldwide. The company continued to run the program for many
years,
continually innovating with new features each
year.
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customer
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Cola
Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in
2005
& Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with
Pepsi
Stuff ending its services and Coke Rewards still offering prizes on their website. Both
were
loyalty programs that give away prizes and product to consumers after collecting bottle
caps
and 12 or 24 pack box tops, then submitting codes online for a certain number of
points.
However, Pepsi's online partnership with Amazon allowed consumers to buy
various
products with their "Pepsi Points", such as mp3 downloads. Both Coca-Cola and
coke
previously had a partnership with the iTunes
Store.
POTENTIAL ENTRANTS
:
New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola
and
Pepsi Co dominate the industry with their strong brand name and great distribution
channels.
In addition, the soft-drink industry is fully saturated and growth is small. This makes it
very
difficult for new, unknown entrants to start competing against the existing
firms.
Another barrier to entry is the high fixed costs for warehouses, trucks, and labour,
and
economies of scale. New entrants cannot compete in price without economies of scale.
These
high capital requirements and market saturation make it extremely difficult for companies
to
enter the soft drink industry therefore new entrants are not a strong competitive
force.
Capital requirements for producing, promoting, and establishing a new soft
drink
traditionally have been viewed as extremely high. According to industry experts, this
makes
the likelihood of potential entry by new players quite low, except perhaps in much
localized
situations that matter little to Coke or Pepsi. Yet, while this view may reflect
conventional
wisdom, some industry observers question whether a new time is coming, with 'new
age'
beverages selling to well-informed and health- informed and health-conscious
consumers.
This issue was beginning to grab the attention of both Coke and Pepsi in the summer
of
1992, when they both were not able to explain a drop in their June 1992
sales.
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customer
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SUBSTITUTES:
Numerous beverages are available as substitutes for soft drinks. Citrus beverages and
fruit
juices are the more popular substitutes. Availability of shelf space in retail stores as
well as
advertising and promotion traditionally has had a significant effect on beverage
purchasing
behaviour. Overall total liquid consumption in the United States in 1991 included
Coca-
Cola's 10% share of all liquid
consumption.
“For years the story in the non-alcoholic sector centred on the power struggle between
Coke
and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying
on
new product flavours and looking to noncarbonated beverages for
growth.”
Substitute products are those competitors that are not in the soft drink industry.
Such
substitutes for Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices
etc.
Bottled water and sports drinks are increasingly popular with the trend to be a more
health
conscious consumer. There are progressively more varieties in the water and sports
drinks
that appeal to different consumer's tastes, but also appear healthier than soft
drinks.
In addition, coffee and tea are competitive substitutes because they provide caffeine.
The
consumers who purchase a lot of soft drinks may substitute coffee if they want to keep
the
caffeine and lose the sugar and
carbonation.
Blended coffees are also becoming popular with the increasing number of Starbucks,
Barista
and CCD stores that offer many different flavours to appeal to all consumer markets. It is
also
cheap for consumers to switch to these substitutes making the threat of substitute
products
very strong (Datamonitor,
2005).
The growth rate has been recently criticized due to the market saturation of soft
drinks.
Datamonitor (2005) stated, “Looking ahead, despite solid growth in consumption, the
global
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customer
India”
Cola
soft drinks market is expected to slightly decelerate, reflecting stagnation of market

prices.”
The change attributed to the other growing sectors of the non-alcoholic industry including
tea
& coffee is 11.8% and bottled water is 9.3%. Sports drinks and energy drinks are
also
expected to increase in growth as competitors start adopting new product
lines.
Profitability in the soft drink industry will remain rather solid, but market saturation
has
caused analysts to suspect a slight deceleration of growth in the industry (2005). Because
of
this, soft drink leaders are establishing themselves in alternative markets such as the
snack,
confections, bottled water, and sports drinks
industries.
In order for soft drink companies to continue to grow and increase profits they will need
to
diversify their product offerings. So in order to compete with the substitutes industry,
coca-
cola has diversified from just carbonated drink industry to other substitute and so have
other
brands like Pepsi, Dr
pepper/Snapple.
BARGANI :
NG POWER OF BUYERS
Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's
real
'buyers' have been local bottlers who are franchised -or are owned, especially in the case
of
Coke- to bottle the companies' products and to whom each company sells its patented
syrups
or concentrates. While Coke and Pepsi issue their franchise, these bottlers are in effect
the
'conduit' through which these international cola brands get to local
consumers
Through the early 1980's, Coke's domestic bottlers were typically independent
family
businesses deriving from franchises issued early in the century. Pepsi had a collection
of
similar franchises, plus a few large franchisees that owned many locations. Until 1980,
Coke
and Pepsi were somewhat restricted in owning bottling facilities, which was viewed
as a
restraint of free trade. Jimmy C arter, a Coke fan, changed that by signing legislation to
allow
soft-drink companies to own bottling companies or territories, plus upholding the
territorial
integrity of soft-drink franchises, shortly before he left
office.
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customer
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Cola
Also, the three most important channels for soft drinks are supermarkets, fountain sales,
and
vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink
industry
sales, fountain sales represented about 25%, and vending accounted for approximately
13%.
Other retailers represent the remaining
percentage.
While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network
of
bottling companies, Coca-Cola uses its own network of wholesalers for their fountain
syrup
distribution, and Pepsi distributes its fountain syrup through its
bottlers.
BARGANING POWER
SUPPLIERS:
The principal raw material used by the soft-drink industry in the United States is
high
fructose corn syrup, a form of sugar, which is available from numerous domestic
sources.
The principal raw material used by the soft-drink industry outside the United States
is
sucrose. It likewise is available from numerous
sources.
Another raw material increasingly used by the soft-drink industry is aspartame, a
sweetening
agent used in low-calorie soft-drink products. Until January 1993, aspartame was
available
from just one source -the NutraSweet Company, a subsidiary of the Monsanto Company-
in
the United States due to its patent, which expired at the end of
1992.
Coke managers have long held 'power' over sugar suppliers. They view the recently
expired
aspartame patents as only enhancing their power relative to
suppliers.
PESTEL ANALYSIS OF COCA- COLA
PESTLE stands for Political Economic, Social Technological Legal and Environmental.
, , , It
is a tool that helps the organisations for making strategies and to know the
EXTERNAL
environment in which the organisation is working and is going to work in the
future.
Coca-Cola beverage, which is the leading manufacturer and distributor of non-
alcoholic
drinks also need to undergo this PESTLE analysis to know about the external
environment
(especially their competitors and the opportunities available) in order to keep pace with
the
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customer
India”
Cola
fast growing
economy.
Political
Analysis:
Political factors are how far a government intervenes in the operations of the company.
The
political factors may include tax policy, trade restrictions, environmental policy,
laws
imposed on the recruiting labours, amount of permitted goods by the government and
the
service provided by the
government.
Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food
and
Drug Administration), it is an agency in the United States Department of Health and
Human
Services. Its headquarters is in USA and it has started opening offices in foreign countries
as
well. The job of the FDA is to check and certify whether the ingredients used in
the
manufacturing of Coca-Cola products in the particular country is meeting to the standards
or
not. In Coca-Cola the company takes all the necessary steps to analyze thoroughly
before
introducing any ingredients in its products and get prior approval from the FDA.
The
company also has to take into consideration of the regulation imposed by FDA on
plastic
bottled
products.
Apart from FDA the other political factors includes tax policies and accounting
standards.
The accounting standards used by the company changes from time to time which have
a
significant role in the reported
results.
The company also is subjected to income tax policies according to the jurisdiction of
various
countries. In addition to this, the company is also subjected to import and excise duties
for
distribution of the products in the countries where it does not have the outsourcing
units.
Moreover, if there is any unrest or changes in the government and any kind of protest by
the
political activists may decline the demand for the products. Also the situations like the
unsure
conditions prevailing in Iraq and escalation of the terrorist activities in these areas
could
affect the international market of our product. It creates an inability for the company
to
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customer
India”
Cola
penetrate in the markets of such

countries.
Economic Factors:
The economic factors analyze the potential areas where the firm can grow and expand.
It
includes the economic growth of the country, interest rates, exchange rates, inflation
rates,
wage rates and unemployment in the
country.
The company first analyzes the economic condition of the country before venturing into
that
country. When there is an economic growth in the country, the purchasing power
among
people increases. It gives the company or the marketer a good chance to market the
product.
Coca-Cola, in the past identified this correctly and rightly started its distribution
across
various countries. The net operating profits for the company outside US stands at
around
72%. Along with this the company uses 63 various types of currencies other than US
Dollar.
Hence there is a definite impact in the revenues due to the fluctuating foreign
currency
exchange rates. A strong and weak currency tends to affect the exporting of the
products
globally.
Interest rates are the rate which is imposed on the company for the money they
have
borrowed from government. When there is an increase in the interest rates, it may deter
the
company in further investment as the cost for borrowing is higher. Coca-Cola uses
derivative
financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate
go
hand in hand, when there is an increase in the inflation the employee demand for a
higher
wage rate to cope up with the cost of
living.
This comes as additional cost for the company which cannot be reflected in the price of
the
final product as the competition and risk in this segment is higher. This is a threat in
the
external environment faced by the company. From the above explanation it is clearly
seen
that the economic factors involves a major impact in the behaviour of the company
during
various economic
situations.
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customer
India”
Cola
Social Factors:
Social factors are mainly the culture aspects and attitude, health consciousness among
people,
population growth with age distribution, emphasis on safety. The company cannot change
the
social factors but the company has to adjust itself to the changing society. The
company
adapts various management strategies to adapt to these social
trends.
Coca-Cola which is a B2C company, is directly related to the customer, so social changes
are
the most important factors to consider. Each and every country has a unique culture
and
attitude among the people. It is very important to know about the culture before marketing
in
a particular country. Coca-Cola has about 3300+ products in their stable, when entering into
a
country it does not introduce all the products. It introduces minimum number of
products
according to the culture of the country and the attitude of the
people.
Consumers and government are becoming increasingly aware of the public
health
consequences, mainly obesity which is the second social factor in the soft drinks industry.
It
inspired the company to venture into the areas of Diet coke and zero calorie soft drinks.
The
problem of obesity is taken seriously among the youngsters who like to maintain a
good
physique. Hence coke introduced dietary products for those youngsters who can enjoy
coke
with zero calories. In one of the study it is said that “Consumer from the age groups 37 to
55
are also increasingly concerned with nutrition”. Since many are aware, they are
concerned
with the longevity of their lives. This will affect the demand of the company in the
existing
product and also is an opportunity to venture into new health and energy drinks
industry.
Population growth rate and the age distribution is another social factor to be considered. It
is
very important because non-alcoholic markets have most of its share from the children
and
youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the
country
becomes important for the success of the product in a
country.
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customer
India”
Cola
Technological
Factors:
Technology plays a varied role in the soft drinks industry. The manufacturing and
distribution
of the products is relatively a Low-Tech business, although the creation of a new
product
with the perfect blend and taste is a science (an art in
itself).
Technological contributions are most important in packaging. The company rely on
their
bottling partners for a significant portion of their business. Nearly 83% of the worldwide
unit
case volume is manufactured and distributed by their bottling partners in whom the
company
does not have controlling power. Hence it is necessary for the company to maintain a
cordial
relation with their bottling partners. If the company do not give ample support in
pricing,
marketing and advertising then the bottling industry while increase their short term
profits,
may become detrimental to the
company.
The advancement in technology in the company has led to: Introduction of new ways for
the
availability of Coca-Cola, it introduced general vending machines all over the world.
In
products it led to the development of new products like Cherry Coke, Diet Coke etc.
The
technical advancement in the bottling industries include, introduction of recyclable and
non
refillable bottles, introduction of cans which are trendy, stylish and popular among
the
youngsters.
Legal Factors
The legal factors include discrimination law, customer law, antitrust law, employment
law
and health and safety law. In Coca-Cola the business is subjected to various laws
and
regulation in the numerous countries in which they do the business, the laws
include
competition, product safety, advertising and labelling, container deposits,
environment
protection, labour
practices.
In the US the products of the company is subjected to various acts like Federal Food,
Drug
and Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health
Act,
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customer
India”
Cola
various environment related acts and regulations, the production, distribution, sale
and
advertising of all the products are subjected to various laws and regulations. Changes in
these
laws could result in increased costs and capital expenditures, which affects the
company
profitability and also the production and distribution of the
products.
Various jurisdictions may adopt significant regulations in the additional product labelling
and
warning of certain chemical content or perceived health consequences. These
requirements if
become applicable in the future the company must be ready to accept and have
necessary
changes in hand for the
same.
Environment
Factors
These factors include the environment such as the weather conditions and the seasons
in
which people prefer to buy cool beverages. Also the company must follow the
environmental
issues related to the product manufacturing, packaging and distributing in various
countries.
It must adhere to the norms and market the product accordingly. Usage of renewable
plastic
in the PET bottles is followed by the company
strictly.
SWOT ANALYSIS OF COCA-
COLA
Fig 2.1 SWOT ANALYSIS OF COCA-COLA
STRENGTHES:
WORLD’S LEADING BRAND
Coca-Cola has strong brand recognition across the globe. The company has a leading
brand
value and a strong brand portfolio. Business-Week and Inter-brand, a branding
consultancy,
recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking
in
2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006.
Coca-
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customer
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Cola
Cola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a
brand
value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product
brands.
The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet
Coke,
Sprite and
Fanta.
Strong brands allow the company to introduce brand extensions such as Vanilla Coke,
Cherry
Coke and Coke with Lemon. Over the years, the company has made large investments
in
brand promotions. Consequently, Coca-cola is one of the best recognized global brands.
The
company’s strong brand value facilitates customer recall and allows Coca-Cola to
penetrate
new markets and consolidate existing
ones.
LARGE SCALE OF OPERATIONS
With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca- Cola
is
the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates
and
syrups in the world. Coco-Cola is selling trademarked beverage products since the year
1886
in the US. The company currently sells its products in more than 200 countries. Of
the
approximately 52 billion beverage servings of all types consumed worldwide every
day,
beverages bearing trademarks owned by or licensed to Coca-Cola account for more than
1.4
billion.
The company’s operations are supported by a strong infrastructure across the world.
Coca-
Cola owns and operates 32 principal beverage concentrates and/or syrup
manufacturing
plants located throughout the
world.
In addition, it owns or has interest in 37 operations with 95 principal beverage bottling
and
canning plants located outside the US. The company also owns bottled water production
and
still beverage facilities as well as a facility that manufactures juice concentrates.
The
company’s large scale of operation allows it to feed upcoming markets with relative ease
and
enhances its revenue generation
capacity.
ROBU
ST REVENUE GROWTH IN 3 SEGMENTS
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customer
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Cola
Coca-Cola’s revenues recorded a double digit growth, in three operating segments.

These
three segments are Latin America, ‘East, South Asia, and Pacific Rim’ and
Bottling
investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over
2005.
During the same period, revenues from ‘East, South Asia, and Pacific Rim’ grew by
10.6%
while revenues from the bottling investments segment by
19.9%.
Together, the three segments of “Latin America”, “East, South Asia” and “Pacific
Rim”
bottling investments, accounted for 34.8% of total revenues during fiscal 2006.
Robust
revenues growth rates in these segments contributed to top-line growth for Coca-Cola
during
2006.
WEAKNESS:
NEGATIVE PUBLICITY
The Coca-Cola Company has been involved in a number of controversies and lawsuits
related
to its relationship with human rights violations and other perceived unethical practices.
There
have been continuing criticisms regarding the Coca-Cola Company's relation to the
Middle
East and U.S. foreign policy. The company received negative publicity in India
during
September 2006.The company was accused by the Centre for Science and
Environment
(CSE) of selling products containing pesticide residues. Coca-Cola products sold in
and
around the Indian national capital region contained a hazardous pesticide
residue.
On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr.
Muhtar
Kent, President and Chief Executive Officer, to warn him that the FDA had concluded
that
Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food,
Drug,
and Cosmetic
Act.
In January 2009, the US consumer group the Centre for Science in the Public Interest filed
a
class-action lawsuit against Coca-Cola. The lawsuit was in regards to claims made,
along
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customer
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Cola
with the company's flavours, of Vitamin Water. Claims say that the 33 grams of sugar
are
more harmful than the vitamins and other additives are
helpful.
SLUGGI
SH PERFORMANCE IN NORTH AMERICA
Coca-Cola’s performance in North America was far from robust. North America is
Coca-
Cola’s core market generating about 30% of total revenues during fiscal 2006. Therefore,
a
strong performance in North America is important for the
company.
I
n North America the sale of unit cases did not record any growth. Unit case retail volume
in
North America decreased 1% primarily due to weak sparkling beverage trends in the
second
half of 2006 and decline in the warehouse-delivered water and juice businesses.
Moreover,
the company also expects performance in North America to be weak during 2007.
Sluggish
performance in North America could impact the company’s future growth prospects
and
prevent Coca-Cola from recording a more robust top-line
growth.
DECLINE IN
CASH FROM OPERATING ACTIVITIES
The company’s cash flow from operating activities declined during fiscal 2006. Cash
flows
from operating activities decreased 7% in 2006 compared to 2005. Net cash provided
by
operating activities reached $5,957 million in 2006, from $6,423 million in 2005.
Coca-
Cola’s cash flows from operating activities in 2006 also decreased compared with 2005
as a
result of a contribution of approximately $216 million to a tax-qualified trust to fund
retiree
medical
benefits.
The decrease was also the result of certain marketing accruals recorded in 2005.Decline
in
cash from operating activities reduces availability of funds for the company’s investing
and
financing activities, which, in turn, increases the company’s exposure to debt markets
and
fluctuating interest
rates.
OPPORTUNITIES:
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customer
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Cola
ACQUISITIONS
During 2006, its acquisitions included Kerry Beverages, (KBL), which was
subsequently,
reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a
controlling
shareholding in KBL, its bottling joint venture with the Kerry Group, in Hong
Kong.
The acquisition extended Coca-Cola’s control over manufacturing and distribution
joint
ventures in nine Chinese
provinces.
In Germany the company acquired Apollinaris which sells sparkling and still mineral
water.
Coca-Cola has also acquired a 100% interest in TJC Holdings, a bottling company in
South
Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006.
These
acquisitions strengthened Coca-Cola’s international
operations.
These also give Coca- Cola an opportunity for growth, through new product launch or
greater
penetration of existing markets. Stronger international operations increase the
company’s
capacity to penetrate international markets and also gives it an opportunity to diversity
its
revenue On 25 February 2010, Coco cola confirms to acquire the Coca
stream. cola
enterprises (CCE) one the biggest bottler in North America. This strategy of coca
cola
strengthens its operations
internationally.
GROWING BOTTLED WATER MARKET
Bottled water is one of the fastest-growing segments in the world’s food and beverage
market
owing to increasing health concerns. The market for bottled water in the US
generated
revenues of about $15.6 billion in 2006.
Market consumption volumes were estimated to be 30 billion litres in 2006. The

market's
consumption volume is expected to rise to 38.6 billion units by the end of 2010.
This
represents a CAGR of 6.9% during 2005-2010.
In terms of value, the bottled water market is forecast to reach $19.3 billion by the end
of
2010. In the bottled water market, the revenue of flavoured water (water-based,
slightly
sweetened refreshment drink) segment is growing by about $10 billion annually.
The
Page 41
customer
India”
Cola
company’s Dasani brand water is the third best-selling bottled water in the US. Coca-
Cola
could leverage its strong position in the bottled water segment to take advantage of
growing
demand for flavoured
water.
GRO
WING HISPANIC POPULATION IN U.S
Hispanics are growing rapidly both in number and economic power. As a result, they
have
become more important to marketers than ever before. In 2006, about 11.6 million
US
households were estimated to be Hispanic. This translates into a Hispanic population of
about
42 million.
The US Census estimates that by 2020, the Hispanic population will reach 60 million
or
almost 18% of the total US population. The economic influence of Hispanics is growing
even
faster than their population. Nielsen Media Research estimates that the buying power
of
Hispanics will exceed $1 trillion by 2008- a 55% increase over 2003
levels.
Coca-Cola has extensive operations and an extensive product portfolio in the US.
The
company can benefit from an expanding Hispanic population in the US, which
would
translate into higher consumption of Coca-Cola products and higher revenues for
the
company.
THREATS:
INTENSE COMPETITION
Coca-Cola competes in the non-alcoholic beverages segment of the commercial

beverages
industry. The company faces intense competition in various markets from regional as well
as
global players. Also, the company faces competition from various non-alcoholic
sparkling
beverages including juices and nectars and fruit drinks. In many of the countries in
which
Coca-Cola operates, including the US, PepsiCo is one of the company’s primary
competitors.
Other significant competitors include Nestle, Cadbury Schweppes, Groupe DANONE
and
Kraft Foods.
Competitive factors impacting the company’s business include pricing, advertising,

sales
Page 42
customer
India”
Cola
promotion programs, product innovation, and brand and trademark development

and
protection. Intense competition could impact Coca-Cola’s market share and revenue
growth
rates
.
DEPENDENCE ON BOTTLING PARTNERS
Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers
in
whom it doesn’t have any ownership interest or in which it has no controlling
ownership
interest. In 2006, approximately 83% of its worldwide unit case volumes were produced
and
distributed by bottling partners in which the company did not have any controlling
interests.
As independent companies, its bottling partners, some of whom are publicly
traded
companies, make their own business decisions that may not always be in line with
the
company’s interests. In addition, many of its bottling partners have the right to
manufacture
or distribute their own products or certain products of other beverage
companies.
If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling
partners,
then the partners may take actions that, while maximizing their own short-term profits,
may
be detrimental to Coca-Cola. These bottlers may devote more resources to
business
opportunities or products other than those beneficial for Coca-Cola. Such actions could,
in
the long run, have an adverse effect on Coca-Cola’s
profitability.
In addition, loss of one or more of its major customers by any one of its major
bottling
partners could indirectly affect Coca-Cola’s business results. Such dependence on
third
parties is a weak link in Coca-Cola’s operations and increases the company’s business
risks.
SLIGGISH
GROWTH OF CARBONATED BEVERAGES
US consumers have started to look for greater variety in their drinks and are
becoming
increasingly health conscious. This has led to a decrease in the consumption of
carbonated
and other sweetened beverages in the US. The US carbonated soft drinks market
generated
total revenues of $63.9 billion in 2005, this representing a compound annual growth
rate
(CAGR) of only 0.2% for the five-year period spanning 2001-2005. The performance of
the
Page 43
customer
India”
Cola
market is forecast to decelerate, with an anticipated compound annual rate of change

(CAGR)
of -0.3% for the five-year period 2005-2010 expected to drive the market to a value of
$62.9
billion by the end of 2010.
Moreover in the recent years, beverage companies such as Coca-Cola have been criticized
for
selling carbonated beverages with high amounts of sugar and unacceptable levels
of
dangerous chemical content, and have been implicated for facilitating poor diet
and
increasing childhood obesity. Moreover, the US is the company’s core market. Coca-
Cola
already expects its performance in the region to be sluggish during 2007. Coca-
Cola’s
revenues could be adversely affected by a slowdown in the US carbonated beverage
market.
Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced
to
Page 44
customer
India”
Cola
close down its operation by a socialist government in the drive for self sufficiency. After
16
years of absence, coca cola returned to India and witnessed a different culture and
economic
platform. During their absence, Parle brothers introduced a new type of cola called
THUMS
UP. Along with, they also formulated a lemon flavoured drink, LIMCA, and
mango
flavoured, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a
hope
to beat the main competitor (Pepsi). They presumed that with the tried and tested products
of
Parle they will be able to regain their throne in the Indian soft drink market. Pepsi having a
6
year head start helped revive the demand for global cola but it was not easy for the soft
drink
giant (coca cola) to return to India. Pepsi put more focus on the youth of the country in
their
advertisements but coca cola tried influencing Indians with the ‘American’ way of life,
which
turned out to be a
mistake.
Coca-Cola invested heavily in India for the first five years, which got them credit of
being
one of the biggest investor in the country; however, their sales figures were not
so
impressive. Hence, they had to re-think their market strategies. Coca-Cola learned
from
Hindustan Lever that reducing their will result in more turnover, hence leading to profit.
They
launched an extensive market research in India. They ascertained that in India 3 As must
be
applied; Affordability, Availability and Acceptability. Coca- Cola learnt that they
were
competing with local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached
to
a conclusion that competitive pricing was unavoidable. Since then they introduced a 200
ml
glass bottle for
Rs.5.
Further, they had different advertising campaigns for different regions of the country. In
the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their
products.
In various regions they tried portraying coca cola products with different regional
food
products. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-
Cola’;
they featured the same quote with different regional
entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share
i.e.
Page 45
customer
India”
Cola
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in
Packaged
water Segment, compared to its arch rival, Pepsi. Diversifying their product range and
having
a competitive pricing policy, they have regained their With virtually all the goods
throne. and
services required to produce and market Coca-Cola being made in India, the business
system
of the Company directly employs approximately 6,000 people, and indirectly
creates
employment for more than 125,000 people in related industries through its vast
procurement,
supply, and distribution
System.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company,
with
another 25 being owned by franchisees. That apart, a network of 21 contract
packers
manufactures a range of products for the
Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate
the
narrow alleyways of Indian cities – constantly keep our brands available in every nook
and
corner of the Country’s remotest
areas.
PRODUCTS OF COCA-COLA INDIA
COCA-
COLA:-
In India Coca-Cola was 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
remote
and inaccessible parts of the
nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions
of
India – Cricket, movies, music & food. Coca-Cola’s advertising “Jo Chaho Ho
campaigns
Jaye” & “Life Ho Toh were very popular & had entered youths vocabulary.
Aise” In
2002.Coca-Cola launched its iconic “Thanda Matlab Coca-Cola” which sky
campaign
rocketed the brand to make it India’s favourite soft drink
brand.
Page 46
customer
India”
Cola
GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml, 100ml
Table - 1.0
LIMCA:-
Limca was introduced in 1971 in India. Limca has remained unchallenged as the
No.1
sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz
and
lemoni bite combined with the single minded proposition of the brand as the provider
of
“Freshness”
.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu”
+
“Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been
the
original thirst choice of millions of customers for over 3
decades.

500ml, 1000ml 2.25L, 500ml, 100ml
Table - 1.1
THUMS
UP:-
Thums up is a leading sparkling soft drink and most trusted brand in India.
Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up
Page 47
customer
India”
Cola
is known for its strong, fizzy taste and it confident, mature and uniquely masculine
attitude.
This brand clearly seeks to separate the men from the
boys.

500ml, 1000ml 2.25L, 500ml, 100ml
Table - 1.2
SPRITE:-
Sprite a global leader in the lemon lime category is the second largest sparkling
beverage
brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be
a
true teen
icon.
RGB PET CAN FOUNTAIN
200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES

1250ml, 1500ml,
2000ml, 2250ml
Table – 1.3
FANTA:-
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a
strong
Page 48
customer
India”
Cola
market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand,
Fanta
stands for its vibrant colour, 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.
200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

2.25L, 500ml, 100ml
Table – 1.4
MINUTE MAID PULPY ORANGE:-
The history of the Minute Maid brand goes as far back as 1945 when the Florida
Food
Corporation developed orange juice powder. The company developed a process
that
eliminated 80% of the water in the orange juice, forming a frozen concentrate that
when
reconstitute created orange juice. They branded it Minute Maid a name connoting
the
convenience and the ease of preparation. Minute Maid thus moved from a
powdered
concentrate to the first ever orange juice from
concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to
further
extend the leadership of Coca-Cola in India in the juice drink
category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25
litres.
MAAZA:-
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit
of
Page 49
customer
India”
Cola
mangoes. Universally loved for its taste, colour, thickness and wholesome properties,
Maaza
is the mango lover’s first
choice.
RGB PET POCKET MAAZA
200ml, 250ml 250ml, 600ml, 1.2L 200ml
Table – 1.5
KINLEY:-
The importance of water can never be understated, Particularly in a nation such as

India
where water governs the lives of the millions, be it as a part of everyday ritual or as
the
monsoon which gives life to the sub continent. Kinley water comes with the assurance
of
safety from the Coca-Cola
Company.
Available in PET 500ml and 1000ml.
GEORGIA GOLD
COFFEE:-
Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and
coffee
beverages is the perfect solution for office and restaurant needs. Today Georgia coffee
is
available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all
major
metros in
India.
HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte,
Mochaccino, Hot Chocolate, Cardamon
Tea.
COLD BEVERAGES Ice Teas, Cold
Coffee.
Table – 1.6
MARKETING MIX OF COCA-COLA INDIA
Page 50
customer
India”
Cola
PRODUCT:
-
Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta,
Sprite,
Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area
where
Coca-Cola identified major opportunities. In 2002, Packaged drinking water in India was
aRs 1,000 cr industry and growing by 40% every year. PDW was a low margin – high
volume
business, but it was an attractive proposition for bottlers as it increased plant utilization
rates.
In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and
Pepsi’s
Aquafina. The product not only faced intense competition but also was difficult
to
differentiate. Coke positioned Kinley as natural water with the tag “Bhoond Bhoond
line
Mein (Trust in each drop of
Vishwas” water).
In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more
bottlers
were brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola
to
CCI’s product line. This meant CCI had three orange, clear lime and cola drinks each in
its
portfolio.
PRICE:-
Coke learnt with experience that price was a strategic weapon in an emerging market
like
India. An increase in value added tax in 1996 had taken the price of the 300ml bottle
beyond
the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment
in
coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by
30%
demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs
5
was rolled out countrywide in January 2003. The advertising Campaign highlighted
the
affordability and Indian
image.
To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected
places
in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in
testing
marketing exercise conducted in mid – 2002. In 2002 Kinley with 35% market share
had
become the leader in the retail PDW segment and was contributing 20% of CCI’s
revenues.
Page 51
customer
India”
Cola
PLACE:-
Coke pushed down responsibilities from corporate headquarters to the local business
units.
The aim was to effectively align CCI's corporate resources, support systems and culture
to
leverage the local capabilities. CCI's operations had been divided into North, Central
and
Southern regions. Each region had a president at the top, with divisions
comprising
marketing, finance, human resources and bottling operations. The heads of the
divisions
reported to the CEO. Bottling operations were divided into four companies directed by
the
bottling head from headquarters. Under the new plan, CCI shifted to a six region profit
center
set up where product customization and packaging, marketing and brand building were
taken
up locally. A Regional General Manager (RGM) headed each region with the
regional
functional heads reporting to him. All the RGMs reported to VP (Operations, who in
turn
reported to CEO. The four bottling operations, with 37 bottling plants, were merged
into
Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average
six
bottling plants. Each plant was headed by an Area General Manager (AGM) and held
profit
center responsibility for a business territory. He reported to the RGM as well as the head
of
bottling at the head
quarters.
PROMOTION:
-
In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The
marketing
campaign positioned Coca-Cola as an international brand and did not emphasize
local
association. Coke, as a deliberate strategy, decided not to spend heavily on promoting
Thums
Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost
negligible.
The overall marketing effort was also not focused as CCI changed the head of
marketing
three times during the period. Thumps Up remained neglected. Inadequate marketing
support
for other Parle brands also led to their declining market
shares.
The bottlers taken over by Coke also had problems adjusting to a new work culture.
They
argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales
and
Page 52
customer
India”
Cola
asked CCI to take corrective

action.
Coke is primarily targeted at young individuals over the age of twenty-five. This can be
seen
by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring
well
known personalities popular to this age group. During 90'ies Coke's promotion efforts did
not
seem to be effective. They were focused on mega events like the 1996 Cricket World
Cup
held in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's
"Nothing
official about it" campaign. Major analysts were surprised that Thumps Up was totally out
of
the picture during such a mega event. In 1998 localization of marketing efforts, CCI
signed
up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke.
Coke
also began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India
was
declared the fastest growing market within the Coca-Cola system. But things were far
from
normal. Attempts at building growth through discounts and PET take home segment were
not
very successful because of lack of coordination between the launches and marketing back-
up.
To maintain good relationships with bottlers and avoid defections to the other camp,
dealers
had been pampered by offering expensive overseas trips. In 2000, Coke wrote
off
investments in India, amounting to $400 Mn. The revised value of CCI's assets after
the
charge was $300 mn.
CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it
had
become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as
a
juice brand and saw a growth of almost 30% in 2001. Since India was a large country
of
different tastes and cultures, CCI customized its marketing strategy for different
regions. It
promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta
in
Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North
Maharashtra.
PESTEL A
NALYSIS OF COCA-COLA INDIA
Page 53
customer
India”
Cola
PESTLE stands for Political Economic, Social Technological Legal and Environmental.
, , , It
is a tool that helps the organisations for making strategies and to know the
EXTERNAL
environment in which the organisation is working and is going to work in the
future.
Political
Factors:
Historical
Coca Cola India was the leading soft drink brand in India till 1977 when it left rather
than
revealing its formula to the government. They re-entered the country in 1993. However,
the
primary barrier for Coca-Cola’s entry into the Indian market was its political
environment.
Despite the liberalization of the Indian economy in 1991 and introduction of the
New
Industrial Policy to eliminate barriers such as bureaucracy and regulation, there was still a
lot
of protectionism. India’s past promotion of “Indigenous availability” or
“Swadeshi
movement” depicted its affinity for local products. Due to India’s suspicion of
foreign
business entering Indian markets, Coca Cola received alien status its re-entry. This and
some
of the policies imposed on foreign enterprises proved as a hindrance to the growth of
the
company in the country. To make things worse, the policies were neither clear
nor
unchanging.
For example, foreign businesses were not allowed to market their products under the
same
name if selling within the Indian market. Thus, Coca Cola had to be changed to Coca
Cola
India (and Pepsi had to be renamed to Lehar Pepsi). However, the most controversial, and
by
far, the most damaging was when Coca-Cola was forced to sign an agreement to sell 49%
of
its equity in order to buy out Indian bottlers. Due to the lack of consistency in the
legal
aspects, more importance was being given to lobbying the
politicians.
Recent Scenario
During recent times, Coca Cola India has faced its fair share of problems. On August th
Page 54
customer
India”
Cola
2003, The Centre for Science and Environment (CSE), an activist group in India focused
on
environmental sustainability issues (specifically the effects of industrialization and
economic
growth) issued a press release stating: "12 major cold drink brands sold in and around
Delhi
contain a deadly cocktail of pesticide residues". According to tests conducted by the
Pollution
Monitoring Laboratory (PML) of the CSE from April to August, three samples of
twelve
PepsiCo and Coca-Cola brands from across the city were found to contain pesticide
residues
surpassing global standards by 30-36
times.
This had an adverse impact on the sales of Coca Cola, with a drop of almost 30-40%1 in
only
two weeks on the heels of a 75% five-year growth trajectory. Many leading clubs,
retailers,
restaurants, and college campuses across the country had stopped selling Coca-Cola.
This
threatened the newly achieved leadership attained over Pepsi due to a successful
marketing
campaign
.
But this was not the end of Coca Cola’s troubles. There was widespread discontent
around
many of their plants. For example, in Plachimada, Kerala, the communities in and around
the
Coca Cola plant blamed the factory for their water problems. Due to this, the local
Panchayat
decided not to renew the license issued to Coca Cola to “protect public interest".
The
company has also been accused of illegally occupying a portion of the village
property
resources in Mehdiganj, near Varanasi. However, there are certain positives as well, with a
22
percent increase in its unit case volume last
quarter.
Economic Analysis
:
The Indian economy sustained the global economic slowdown in the previous year and
has
shown a tremendous economic growth. It showed 8.6% of growth in the last quarter of
2009-
10 as compared to 5.8% same time in the previous year. It has emerged as an
attractive
economy to invest in as many opportunities has been
recognized.
Economic growth
Page 55
customer
India”
Cola
India is ranked second in economic growth, just behind China. Analysts have said that
India
will be the third biggest economy of the world in the coming year behind China and
USA.
With economic growth many opportunities have been seen, which have attracted
many
foreign investor to the
company.
Coca cola India returned to the country in 1993, despite few problems in the start they
have
emerged as the king of soft drink industry in India. The strong economic growth of India
has
resulted in coca cola to invest heavily in sales and distributive channels. It has introduced
two
new products, Nimbu Fresh and an energy drink
‘Burn’.
Coca cola registered 22% growth in their unit case volume in the second quarter (April-
June).
It is the th consecutive quarter of such growth out of which 13 are double digit. Coca
16 cola
India’s growth is in contrast to its overall performance, the beverage king reported a
growth
of just 5% (worldwide) in the same
quarter.
Inflationary
effects
Inflation is one of the main problems that Indian economy has been facing for a year
now.
Rising prices in the food and other products doesn’t only effect the consumers it also has
an
adverse effect on a company. The inflation rate for the year 2009 was recorded to be
11.49%.
As prices have gone up in India for various products, especially oil, there has
been
uncertainty in decision making of almost every company. Coca cola India has also
been
affected by the same; it has been forced to think about their input costs, as they have
been
rising due to inflation. Their expenditure has been rising, with more costs in
salaries,
distribution channels and other operating costs. Beverage industry being price
competitive
market, they have not revised their product
prices.
Exchange rate
Page 56
customer
India”
Cola
The exchange rate of rupee to US Dollar has been stable but in the previous months the
rate
has had a tumultuous period. Exchange rate determines at what price will the company
export
its products and import whatever is required by it. The previous year, the rate of rupee
to
USD touched 44, on an average it has been around 47, so the exports earned less and
the
imports cost more. Therefore, coca cola India had to bear some low profitable
times.
However, in the present scenario rates have reached a stable level and exports are on
an
increasing
trend.
Social Analysis:
Coca- Cola returned to India in 1993 after a 16 year hiatus, amidst competition from
Leher
Pepsi which had the advantage of entering the country 7 years earlier. Initially, it struggled
to
find acceptance as there were already other brands such as Parle’s Thums Up which
existed
in the market. Coca-Cola had earlier focussed more on the American way of life in
their
advertising campaigns, which the Indian consumers could not identify with. Also, they
did
not focus on competition from other alternatives such as lemonade, Lassi
etc.
These products had been around for centuries, and were also cheaper alternatives to
Coca-
Cola. However, things were brought under control when Thums Up was bought over by
Coca
Cola, and more attention was paid by the company on their marketing
mix.
With the lowering of their prices by almost 15-20%, introduction of newer products
which
appealed to the Indian tastes, more investment in market research and focussing on the
target
group of 18-24 year olds, they were able to increase their market share and build
brand
loyalty.
Coca Cola today, has made significant investments to build its business in India. It has
also
generated employment for almost 1,25,000 people in related industry through
its
procurement, supply and distribution
cycles.
The soft drink industry today is growing steadily due to the booming economy,
strengthened
Page 57
customer
India”
Cola
middle class and low per capita consumption. With the increase in health
consciousness
among the urban consumers, the company has introduced newer products such as Diet
Coke,
which contain lesser calories than ordinary Coca Cola. This is also responsible for
the
company shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled
water.
The rural market had also been identified by Coca- Cola India as an attractive target,
with
almost 70% of the country’s population. The company has recorded significant growth
in
recent
years
Coca Cola India has also taken many initiatives as a responsible corporate citizen, by tying
up
with many NGOs such as BAIF (or Bharatiya Agro Industries Foundation), SOS
Children’s
Villages and Save the Children. It has also taken initiatives to promote education in
rural
areas
.
Technological Analysis:
Coca-Cola has started operations of its R&D facility in India, with the view of localizing
its
product portfolio. The major focus would be on non carbonated drinks and flavours.
The
company’s R&D team has already rolled out drinks such as Maaza aam panna and also
a
Maaza mango milk drink, and is exploring options to enter new categories in India such
as
juices in localised flavours, energy drinks, sports drinks and flavoured water.
These
initiatives are being taken by the company to further expand their product
portfolio.
With the increasing importance of 360 degree media tools and overall ad spend on
social
media sets likely to grow by almost 44%, Coca-Cola has increased ad spend on the
internet.
Case in point is the recent 2009 Sprite campaign, which was first launched on the
internet.
Environmental Analysis
:
Coca Cola has earned a title of environment friendly company and Coca Cola India too
has
followed in the footsteps. Coca Cola India’s Corporate Social Responsibility (CSR), is
an
initiative that prioritizes many social and environmental issues; one of them being
‘water
conservation’. They support many community based rainwater harvesting projects and
help
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lending conservation
education.
The company has made sure that the following ideas are considered during their
operations:
1. Environmental due diligence before acquiring
land
2. Environmental impact assessment before commencing
project
3. Ground water and environment survey before selecting the
site
4. Ban on purchasing CFC emitting refrigerating
equipment
5. Waste water treatment
facilities
6. Compliance with all regulatory environmental
requirements
7. Energy conservation
programs
By following these guidelines Coca-Cola India has helped the environment with
consistent
profits and success. They seek to provide leadership in three different areas, these are
as
follows
:
1. Water efficiency and water
quality
2. Energy
efficiency
3. Eliminating or minimizing solid
waste.
Thoug
h being an environmental friendly company, Coca Cola India had to face its share
of
controversies. On th February, 2003, Centre of Science and Environment in India, released
4report based on experiment
a done by Pollution Monitoring Laboratory. In the experiment,
they
tested 17 packaged drinking water brands and found that, Coca Cola’s Kinley has 15
times
more pesticide residual levels than the stipulated norms, Bisleri had 59 times and
Aquaplus
had 109 times.
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The main law governing the food safety is the 1954 Prevention of food alteration act,
which
stated that pesticides should not be present in any food item but did not have law
against
pesticides being present in soft drinks. However, the Food Processing Order 1955 stated
that
the main ingredient used in soft drinks must be ‘potable water’ but the Bureau of
Indian
Standards had no prescribed standards for pesticides in
water.
But later it was found that BIS had stated that pesticides should not be present or it should
not
exceed 0.001 part per million. Further, the health ministry of India admitted that ‘there
were
lapses in PFA regarding carbonated
drinks’.
Fig 2.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN

INDIA
Legal Analysis
:
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As the Indian consumer is getting more educated, the government is also paying
special
attention to consumer laws. In the past, there were not so many laws protecting the benefits
to
the consumer but now every business has to go by the law and fix their operations,
strategies
so as to satisfy their consumers, and employees. Keeping in mind the consumer
laws,
employment laws, antitrust law, discrimination laws etc. a business should plan
out
everything.
Consumer Laws
In the present scenario, consumer is the king, if a product is defective, not meeting the
stated
standards a consumer can complain against the manufacturer. Complaining and getting
the
verdict the court has made very fast and efficient as government of India has installed
new
consumers courts. Their main job is to see that the consumer benefits are being met or
not.
When producing their beverages, Coca Cola India has to make sure that they have
written
price, manufacturing date, expiry date, batch no, nutritional facts are written on the
packed
product.
Employment
Laws
Ministry of Labour makes the laws for proper employment in the country. They
have
stipulated norms on employing people from the country and getting expatriates in
the
company as well. India has strict laws against employing child labour. Being a
male
dominated society, the ministry has made sure that female employees are treated with
respect
and given equal importance at the work place. Every field of work has got its own
wage,
these are to meet the norms and laws set by the labour ministry. When employing
anyone,
coca cola India cannot discriminate on social, regional or any racists’ basis. If it is found
that
the company has been violating the law, it has to face strict action and
fines.
Health and safety laws
As coca cola produces a product that is consumed by the consumer as a food item, there
are
laws that the company must abide by when producing it. Ministry of Food
Processing
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Industries makes and oversees the laws and norms for the food processing
industries.
The Indian Parliament has recently passed the Food Safety and Standards Act, 2006
that
overrides all other food related
laws.
It will specifically repeal eight
laws:
• The Prevention of Food Adulteration Act,
1954.
• The Fruit Products Order,
1955.
• The Meat Food Products Order,
1973.
• The Vegetable Oil Products (Control) Order,
1947.
• The Edible Oils Packaging (Regulation) Order,
1998.
• The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order,
1967.
• The Milk and Milk Products Order,
1992.
• Essential Commodities Act, 1955 relating to
food.
From now on, the act establishes a regulatory body, the Food Safety and Standards
Authority
of India. Anything that coca cola makes, have to make accordingly to the laws. They have
to
check the weight, volume and ingredients of the product. The export or the import of
the
products by the company has to meet the quality standards stipulated by the
law.
Anti trust law

-
The Competition Commission of India was made under the Indian Competition Act
2002,
Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. This
committee
looks after all the issues regarding unethical means of doing business, competition issues
and
any dispute between two different business entities. CLG competition and anti trust
practices
are as
follows:
• Representing clients before the MRTP Commission in ‘monopolistic and
restrictive
trade practices’ and ‘unfair trade practices’
matters.
• Legal Advice and sophisticated insight into the international best practices
on
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Cola
competition
law.
• Consultancy services on specific issues - supply and distribution, pricing
and
marketing, ‘promotional materials’, mergers, acquisitions, amalgamation,
licensing,
joint operation and research, joint buying, ‘dominant-firm’ status
etc.
• Competition Audit and Due Diligence for developing appropriate guidelines
for
employees, distributors, agents, franchisees
etc.
• Legal Due Diligence on anti-competition, unfair and restrictive market
practices.
• Drafting claims, counter-claims, replies, rejoinders, representations etc.
on
Competition Law and related legal
issues.
• Strategic policing on anti-competition market practices and
trends.
• Policy due diligence for mergers, acquisitions, joint ventures with appropriate
anti-
trust safeguard measures and
policy.
All these laws help Coca Cola India to maintain its own brand and values. Any other
business
trying to copy the brand of coca cola will face the strict action against itself. These laws
help
every business to compete in a fair environment. As it is known that the coca cola and
Pepsi
are the fiercest rivals in the beverage industry, the CCI makes sure that either of them
does
not indulge in unfair means to make profits and hurt each other’s
business.
SWOT ANALYSIS OF COCA-COLA INDIA
Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA
STRENGTHES:
DISTRIBUTION NETWORK
The Company has a strong and reliable distribution network. The network is formed on
the
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basis of the time of consumption and the amount of sale yielded by a particular customer
in
one transaction. It has a distribution network consisting of a number of efficient
salesmen,
700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes
of
distribution, from 10 tonne to open bay three wheelers that can navigate the narrow
alleyways
of Indian cities – constantly keep Coca-Cola brands available in every nook and corner of
the
Country’s remotest
areas.
STRONG BRAND IMAGE
Coke has its history of about more than a century and this prolonged sustenance
has
definitely added to the brand image in the minds of the consumers and to its wallet.
The
products produced and marketed by Coca-Cola India have a strong brand
image.
Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the
brand
name of Coca-Cola Company as a Coca Cola India for the first time has come
whole.
with corporate campaign in Indiaout targeting its stakeholders. The
multimedia
campaign Little Drops of Joy " is aimed at raising the corporate brand image of
“ the
company which took a heavy beating with a number of controversies it faced in
different
domains.
The new campaign is a part of a complete restructuring exercise in the Indian arm of
this
global change. Coca Cola recently announced its new corporate strategy called the “5
Pillar"
strategy. The company has identified the 5 pillars
as
• People.
• Planet
.
• Portfolio.
• Partners
.
• Performance
.
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LOW COST OF OPERATIONS
In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost-
focus
culture in the company. This included procurement Efficiencies – through focus on key
input
materials, trade discipline and control and proactive tax management through tax
incentives,
excise duty reduction and creating marketing companies. These measures have reduced
the
costs of operations and increased profit
margins.
WEAKNESSES
:
HEALTH CARE ISSUES

In India, there exists a major controversy concerning pesticides and other harmful
chemicals
in bottled products including Coca-Cola. In 2003, the Centre for Science and
Environment
(CSE), a non- governmental organization in New Delhi, said aerated waters produced by
soft
drinks manufacturers in India, including multinational giants PepsiCo and Coca-
Cola,
contained toxins including lindane, DDT, malathion and chlorpyrifos - pesticides that
can
contribute to cancer and a breakdown of the immune
system.
SMALL SCALE SECTOR RESERVATIONS

The Company’s operations are carried out on a small scale and due to
Government
restrictions and ‘red-tapism’, the Company finds it very difficult to invest in
technological
advancements and achieve economies of
scale.
OPPORTUNITIES:
LARGE DOMESTIC MARKETS
The domestic market for the products of the Company is very high as compared to any
other
soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks
market;
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this includes a 42 per cent share of the cola

market.
Other products account for 16 per cent market share, chiefly led by Limca. The
company
appointed 50,000 new outlets in the first two months of this year, as part of its plans to
cover
one lakh outlets for the coming summer season and this also covered 3,500 new villages.
In
Bangalore, Coca-Cola amounts for 74% of the beverage
market.
EXPORT POTENTIAL
The Company can come up with new products which are not manufactured abroad,
like
Maaza etc and export them to foreign nations. It can come up with strategies to
eliminate
apprehension from the minds of the people towards the Coke products produced in India
so
that there will be a considerable amount of exports and it is yet another opportunity
to
broaden future prospects and cater to the global markets rather than just domestic
market.
HIGHER INCOME AMONG PEOPLE

Development of India as a whole has lead to an increase in the per capita income
thereby
causing an increase in disposable income. Unlike olden times, people now have the power
of
buying goods of their choice without having to worry much about the flow of their
income.
Coca-Cola Company can take advantage of such a situation and enhance their
sales.
THREATS:
IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years
and a
majority of the people are educated, the export levels have gone high. People
understand
trade to a large extent and the demand for foreign goods has increased over the
years.
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If consumers shift onto imported beverages rather than have beverages manufactured
within
the country, it could pose a threat to the Indian beverage industry as a whole in turn
affecting
the sales of the
Company.
TAX & REGULATORY SECTOR

The tax system in India is accompanied by a variety of regulations at each stage on
the
consequence from production to consumption. When a license is issued, the
production
capacity is mentioned on the license and every time the production capacity needs to
be
increased, the license poses a problem. Renewing or updating a license every now and then
is
difficult. Therefore, this can limit the growth of the Company and pose
problems.
SLOWDOWN IN RURAL DEMAND

The rural market may be alluring but it is not without its problems: Low per capita
disposable
incomes that is half the urban disposable income; large number of daily wage earners,
acute
dependence on the vagaries of the monsoon; seasonal consumption linked to harvests
and
festivals and special occasions; poor roads; power problems; and inaccessibility
to
conventional advertising media. All these problems might lead to a slowdown in the
demand
for the company’s
products.
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4
. RESEARCH
METHODOLOGY
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O
BJECTIVES OF THE STUDY
The main objective of the project is to analyze and study in efficient way the
current
position of Coca- Cola
Company.
To perform PESTLE and SWOT analysis of Coca-cola globally as well as

locally.
This would help us identify areas of potential
growth.
The study was aimed to perform Market Analysis of Coca-Cola Company & find
out
different factors effecting the growth of Coca-
Cola.
Another objective of the study was to perform Competitive analysis between

Coca-
Cola and its
competitors.
To understand the reasons behind the purchase of Coca-Cola
products.
SCOPE OF THE
STUDY:-
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Cola
This study basically tries to discover the current position of Coca-cola in the market.
It
also tries to discover the preferences of the customers when posed with a choice
between
Coca-Cola and Pepsi. It is primarily directed to the general public but was done only
in
New Delhi, Noida and Greater
Noida
RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the
needed
informatio .It is overall operational pattern or framework of the project that stipulates
n what
information is to be collected from which source by what
procedure.
There are three types of objectives in a marketing research
project:-
• Exploratory
Research.
• Descriptive
Research.
• Casual
Research.
1.Exploratory Research:-
The objective of exploratory research is to gather preliminary information that will

help
define problems and suggest
hypothesis.
2.Descriptive Research:-
The objective of descriptive research is to describe things, such as the market

potential
for a product or the demographics and attitudes of consumers who buy the
product.
3.Casual Research:-
The objective of casual research is to test hypothesis about casual and

effect
relationships
.
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Based on the above definitions it can be established that this study is a Descriptive
Research
as the attitudes of the customers who buy the products have been stated. Through this
study
we are trying to analyze the various factors that may be responsible for the preference
of
Coca-Cola
products.
SOURCES OF DATA
The data has been collected from both primary as well as secondary
sources.
SECONDARY DATA:-
It is defined as the data collected earlier for a purpose other than one currently being
pursued.
As a researcher I have scanned lot of sources to get an access to secondary data which
have
formed a reference base to compare the research findings. Secondary data in this study
has
provided an insight and forms an outline for the core objectives
established.
The various sources of secondary data used for this study

are:-
News
papers.
Magazines
.
Text books.
Marketing reports of the
company.
Internet
.
PRIMARY DATA:-
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The primary data has been collected simultaneously along with secondary data
for
meeting the established objectives to provide the solution for the problem identified
in
this study.
The methods that have been used to collect the primary data
are:-
Questionnaire
.
Personal
Interview.
RESEARC
H MEASURING TOOLS & TECHNIQUES
The primary tool for the data collection used in this study is the respondent’s response to
the
questionnaire given to them. The various research measuring tools used
are:-
Questionnaire
.Personal
interview.
Tables
.
Percentages
.
Pie-
charts.
Bar-
charts.
Column
charts.
SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it

addresses
three questions: Whom to survey (sample Unit), how many to survey (Sample Size) and
how
to select them (sampling Procedure). Making the census study of the entire universe will
be
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impossible on the account of limitations of time and money. Hence sampling

becomes
inevitable. A sample is only his portion of population. Properly done, sampling
produces
representative data of the entire
population.
SAMPLE SIZE:-
i. Through questionnaire – 150

respondents.
ii. Through personal interview – 27
respondents.
SAMPLING TOOL:-
Questionnaire was used as a main tool for the collection of data, mainly because it gives
the
chance for timely feedback from respondents. Moreover respondents feel free to disclose
all
necessary detail while filling up a questionnaire. Respondents seeking any clarification
can
easily be sorted out through
tool.
Sampling Tools Respondents Number
Questionnaire Customers
150
Personal Interview Customers
27
Total 177
Table – 1.7
FIELD WORK:-
The study was conducted in New Delhi, Noida and Greater

Noida.
The questionnaires were given to the respondents to fill in order to get their
feedback.
Questions were read out to the respondents and the answers were
noted.
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LIMITATIONS OF THE STUDY:-
The main purpose of this study is get idea about the preference of the customers
towards
various Coca-Cola products. But there are certain factors which affects this study they are
as
follow:
Since the sampling procedure was judgmental, the sample selected may not be
true
representative of the
population.
Economic and market conditions are very unpredictable (Present and

future).
The project duration is limited to 4 weeks so it limits the area of

study.
The study was confined to New Delhi, Noida and Greater Noida due to which
the
result cannot be applied
universally.
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5.
DATA ANALYSIS
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Fig 2.4
Fig 2.5
AGE GROUP & GENDER:
From Fig 2.4, we can comprehend that 90% of total respondents belong to the age group
of
20-30. This is because most of the consumers that prefer or consume Coca-Cola
products
belong to this age group. About 6% belong to age group below 20 and 3% belong to age
group of 30-40.Form Fig 2.5, we come to know that the gender ratio of the total
respondents
is almost 2:1 (male:
female).
Fig 2.6
Fig 2.7
SOFT DRINK CONSUMPTION & EXPENDITURE:
From Fig 2.6, we interpret that about 48% of the total respondents consume soft drinks
rarely
or once a week. About 35% respondents consume soft drinks twice or thrice a week and
only
18% consumes soft drinks every
day.
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From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-100 a
week
on Coca-Cola products, which is very low as compared to the global scenario. This creates
a
potential growth market for Coca-Cola India. About 12% spends from 100-150 a week &
7%
spend above 150.
Fig 2.8
PURCHASING PORTAL
PREFERENCE:
From the above data, we have ascertained that preferred portal for purchase of Coca-
Cola
products is the retail shops i.e. 58%. This is probably because not all communities in
India
have supermarkets and other purchasing channels present nearby, whereas, we can find
retail
shops in every corner.19% prefer to purchase from Supermarkets and Vendor machines.
23%
prefer to purchase from Pubs, Restaurants and
Multiplexes.
Fig 2.9
REASON FOR
CONSUMPTION:
From this graph, we infer that there is no specific occasion why people purchase Coca-
Cola
products. Although some of the advertising campaigns target special occasion or
festivals.
From Fig 2.9 it is concluded that 59% respondents purchase Coca-Cola without any
specific
reason. About 23% purchase for the purpose of parties, 15% purchase while
watching
movies in the cinemas and only about 4% purchase during festivals and for picnic
purposes.
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Fig 2.10
SOFT DRINK PREFERENCE:
From the above graph we interpret that about 70% of the respondents, prefer
consuming
Coca-Cola product over Pepsi and other drinks. This clearly states why Coca-Cola is
market
leader with almost 60% of market share. 23% prefer Pepsi Products and only 75 prefer
other
drinks.
Fig 2.11
Fig 2.12
OPINION ABOUT COCA-COLA

PRODUCTS
& PRODUCTS EXPECTED BY CONSUMERS :
From Fig 2.11, we infer that though the respondents are more than satisfied by the Coca-
Cola
product range they would still like the company to introduce new drinks. From Fig 2.12,
we
conclude that about 40% would like to see a new fruit drink being added to the
product
basket, 26% want energy drinks, 20% alcoholic drinks and only 14% want another
fizzy
drink. Majority of the people wanting to see a fruit drink is mainly because people are
more
health conscious now and want to manage their calorie
intake.
Fig 2.13
QUANTITY PREFERENCE:
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From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET bottle
of
Coca-Cola Products. About 27% prefer to purchase glass bottles, 19% prefer Can of
300ml
and only 8% prefer 1 & 2 litre bottles of Coca-
Cola.
Fig 2.14
Fig 2.15
BRANDING :
& PRICING
From Fig 2.14, it is concluded that respondents find Coca-Cola products better than that
of
Pepsi products. About 62% respondents said that they find Coca-cola products better
than
Pepsi and only 38% supported Pepsi
products.
From Fig 2.15, we infer that about 62% of the respondent considers the pricing of Coca-C
ola
much more reliable than that of Pepsi. About 38% respondents think that Pepsi have
better
pricing than that of Coca-
Cola.
Fig 2.16
Fig 2.17
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QUALITY :
& TASTE
From Fig 2.16 & 2.17, it’s clear that Coca-Cola products have better taste and quality
than
that of Pepsi. About 73% respondents consider that Coca-Cola products have very
good
quality and taste. 27% respondents consider Pepsi products have better taste and
quality.
Fig 2.18
Fig 2.19
AVAILABILITY & SATISFACTION:
From Fig 2.18, it’s clear that there is slight difference between the availability of products
of
Coca-Cola and Pepsi. About 51% respondents think that Coca-Cola products are much
easily
available in the market.49% consider that availability of Pepsi products is more in
the
market
.
About 70% of respondents are satisfied with the Coca-Cola products while as
30%
respondents are satisfied with the Pepsi products as shown in Fig
2.19.
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6.
SUGGESTIONS
AND
CONCLUSION
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SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part
of
“Coca-Cola India”. The suggestions are arranged in order of priority, highest
first.
Perform a detail demand survey at regular interval to know about the unique
needs
and requirements of the
customer.
The company should make hindrance free arrangement for its customers/retailers
to
make any feedback or suggestions as and when they
feel.
The company should focus to bring some more flavors like health drinks and
other
low-calorie offerings. Coca-Cola India can also introduce some fruit based
drinks,
as it has already entered the energy drink arena with
“Burn”.
Coca-Cola’s distribution channel is mostly through retail. Whereas the
competitors
also concentrates more on the multiplexes, pubs and restaurants. Coca-Cola
should
try to increase their distribution in these
areas.
The company must keep a watch on its primary competitors in market in order to
be
able to compete with
them.
The company should use new attractive system of word of mouth advertisement
to
keep alive the general awareness in the whole market as a
whole.
The company should be always in a position to receive continuous feedback
and
suggestions from its customers/ consumers as well as from the market and try
to
solve it without any delay to establish its own good
credibility.
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A strong watch should be kept on distributors so that the goodwill of the

BRAND
doesn’t get
affected.
CONCLUSION
Though there were rtain limitations in the study that was conducted. The sample
ce allowed
for some conclusions to be drawn on the basis of analysis that was done on the
data
collected
.
The data has clearly indicated that Coca-Cola products are more popular than the
products
of Pepsi mainly because of TASTE , BRAND NAME , INNOVATIVENESS and
its
AVAILABILIT , thus it should focus on good taste so that it can capture the major part
Y of
the market. The study also indicated that the consumers are satisfied with the Coca-
Cola
products and purchase them without any specific
occasions.
In today’s scenario, customer is the king because he has got various choices around him.
If
you are not capable of providing him the desired result he will definitely switch over to
the
other provider. Therefore to survive in this cutthroat competition, you need to be the
best.
Customer is no more loyal in today’s scenario, so you need to be always on your
toes.
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BIB
LIOGRAPHY
BOOKS:
Marketing Management – Kotler Philip.

Research Methodology – Kothari.
WEBSITES:
www.thecoca-colacompany.com
www.news.bbc.co.uk
www.india-server.com
www.magindia.com
www.coca-colaindia.com
www.wikiinvest.com
www.open2.net
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OTHERS
Annual report of Coca-Cola 2008.

Annual report of Coca-Cola 2009.
ANNEXURE
QUESTIONNAIRE
NAME:
..............................................................................
GENDER:
a) Male b) Female
Do you drink Soft drinks?

a) Yes
b) No
How often do you have soft drinks per week?

a) Once a week
b) Twice a week
c) Thrice a week
d) Everyday
e) Rarely
What drink comes to your mind when you think of soft drinks?
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a) Coca-Cola
b) Pepsi
c) Other products of Coca-Cola
d) Other products of Pepsi
e) Other drinks
What quantity do you usually prefer to buy?

a) 200-250 ml Glass bottle
b) 300 ml Can
c) 500 ml Pet bottle
d) 1 litre
e) 2 litre
What do you feel about Coca-Cola product range?

a) Excellent
b) Good
c) Satisfactory
d) Below Satisfactory
e) Bad
What occasions do you prefer to buy Coca-Cola products?

a) Festivals
b) Picnics
c) Parties
d) Cinemas
e) Just like that
What is your most preferred channel for purchasing Coca-Cola products?

a) Super markets
b) Retails
c) Vendor Machines
d) Pubs & Restaurants
e) Multiplexes
How much do you spend on Coca-Cola products per week?

a) 50-100
b) 100-150
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c) 150-200
d) Above 200
Put (X) mark in which ever you feel is appropriate?
Parameters / Product Coca-Cola Products Pepsi Products

1) Branding
2) Quality
3) Price
4) Taste
5) Availability
6) Satisfaction
What kind of products do you want Coca-Cola to introduce in the future?

a) Fizzy Drinks
b) Fruit Drinks
c) Energy Drinks
d) Alcoholic Drinks
..............................................................................................................
.
Thank you!
Page 87

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“Project Report on Coca-Cola Company and study of

preference for Coca-Cola brands with reference to Coca-

CHAPTER 2 INDUSTRY PROFILE

CHAPTER 3 COMPANY PROFILE

CHAPTER 4 RESEARCH METHODOLOGY

CHAPTER 5 DATA ANALYSIS

CHAPTER 6 SUGGESTIONS AND CONCLUSION

objectives this study is also conducted to understand the Customer preferences

And counsel before every action

Research is a human activity based on intellectual investigation and is aimed at

opportunities and problems; generate, refine, and evaluate marketing actions;

Coca-Cola system has successfully applied a simple formula on a global scale:

A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

A BRIEF- INSIGHT BEVERAGE INDUSTRY IN INDIA

Fig 2.0 BEVERAGES IN INDIA

Alcoholic, non-alcoholic and sports

If the behavioural patterns of consumers in India are closely noticed, it could be

The quality and the consistency of beverages needs to be enhanced so that

by describing what we need to accomplish in order to continue achieving sustainable,

Profit Maximize long-term return to shareowners while being mindful of our

Focus on needs of our consumers, customers and franchise

Focus on execution in the marketplace every

TRENDS AND FORCES

The Global Economic Recession Threatens Overall

weakening of the division between KO's production and distribution operations.

Dollar Affects International

significant rise in Commodities represents a constant threat to

RIVALRY AMONG EXISTING FIRMS:

Pepsi is however trying to counter this by competing more aggressively in the

soft drinks market is expected to slightly decelerate, reflecting stagnation of market

penetrate in the markets of such

Fig 2.1 SWOT ANALYSIS OF COCA-COLA

WORLD’S LEADING BRAND

Coca-Cola’s revenues recorded a double digit growth, in three operating segments.

Market consumption volumes were estimated to be 30 billion litres in 2006. The

Coca-Cola competes in the non-alcoholic beverages segment of the commercial

Competitive factors impacting the company’s business include pricing, advertising,

promotion programs, product innovation, and brand and trademark development

market is forecast to decelerate, with an anticipated compound annual rate of change

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES

200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

MINUTE MAID PULPY ORANGE:-

200ml, 250ml 250ml, 600ml, 1.2L 200ml

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

MARKETING MIX OF COCA-COLA INDIA

asked CCI to take corrective

Fig 2.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN

Anti trust law

Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA

LOW COST OF OPERATIONS

HEALTH CARE ISSUES

SMALL SCALE SECTOR RESERVATIONS

LARGE DOMESTIC MARKETS

this includes a 42 per cent share of the cola

HIGHER INCOME AMONG PEOPLE

TAX & REGULATORY SECTOR

SLOWDOWN IN RURAL DEMAND

To perform PESTLE and SWOT analysis of Coca-cola globally as well as

Another objective of the study was to perform Competitive analysis between