A

TRAINING REPORT ON
“MARKETING STRATEGY OF COCA COLA”

Submitted to:

Kurukshetra University, Kurukshetra

In the partial fulfilment of the Degree of Bachelor of Business Administration
(Session 2020-21)

Under the guidance of: Submitted by:

Miss. Garima Rajat Kalyan
Asst. professor BBA Final
Dept. Of Commerce & Univ. regd. 18-MY-1033
Management
Univ. Roll No.- 180005403
MLN college, Yamuna Nagar
Class Roll No- 2367210008

MUKAND LAL NATIONAL COLLEGE

YAMUNA NAGAR 135001
 ACKNOWLEDGEMENTS

This training report has been made possible through the direct and indirect
cooperation of various people whom I wish to express my thanks and gratitude
I sincerely thank Dr. Rahul Khanna Principal , MLN College, Yamuna Nagar for
giving me an opportunity to work with COCA COLA. and provide me the guidance
and support in the completion of the training
I also express my gratitude to Dr Neeti Daryal (H.O.D) MLN College, Yamuna
Nagar for helping me through her constant guidance and support
I would also like to express my thanks to Ms. Garima (Assistant Professor), MLN
College, Yamuna Nagar for helping me through her kind co-operation & valuable
guidance
I would also like to express my heartiest thanks to faculty members of the department
and my friends for their advice and guidance for providing inspiration in the face of
difficulties encountered in the course of the work and to create this training report
Finally, with blessing of my parents and who are source of strength and aspirator for
me in this endeavour

Rajat Kalyan
BBA
 DECLARATION

I Rajat Kalyan, hereby declare that, I have prepared a training report of COCA

COLA entitled “Marketing Strategy Of Coca Cola” is submitted by me in the

partial fulfilment of the requirement for the degree of Bachelor of Business

Administration to Kurukshetra University, Kurukshetra is original work

conducted by me and all data & facts collected for this report are original to the best

of my knowledge.

Rajat Kalyan

BBA
 MUKAND LAL NATIONAL COLLEGE

YAMUNA NAGAR-135001
PHONE NO -01732-220960, 225560

Dated………
……

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Rajat Kalyan S/O Sh. Deepak Kalyan, bearing University Roll
No. 180005403 University Registration No. 18-MY-1033 Class Roll No.
2367210008, a bonafide student of BBA (Final) has completed his work on Training
Report entitled “Marketing Strategy of Coca Cola” under my supervision. His work
is original, satisfactory and fit for the purpose of further evaluation towards the partial
fulfilment for the award of the Degree of Bachelors of Business Administration from
Kurukshetra University, Kurukshetra.

Ms. Garima Ms. Pallavi Jain Dr. Rahul

Khanna
Asst. Proff. In Commerce Incharge
Principal
M.L.N. College, YNR. M.L.N. College, YNR M.L.N.
College, YNR
 TABLE OF CONTENT

TITLE Page
no.

1. Introduction 1

-3

a. Company profile 4

- 12

b. About the Topic 13

- 33

2. Statement of the Problem

a. Objectives 35 -

36

b. Pedagogy 37 -

52

 Research Methodology

 Data Interpretation
3. Analysis and Findings 53 -

55

4. Limitation 56

- 57

5. Recommendation &Conclusion 58

- 61

6. Annexure 62

- 63

a. Bibliography
INTRODUCTION
 INTRODUCTION

This project is focused on studying the various marketing strategies of Coca-Cola and the
scenario of Indian soft drink industry in the 1990’s.

Coca-Cola Co., the global soft drink industry leader controlled Indian soft drink industry till
1977. Then Janta Party beats the Congress Party and the Central Government was changed.
This change brought problems for Coca-Cola principle bottler, who was a big supporter of
Gandhi Family. Now Janta Party government demanded that Coca-Cola should transfer its
syrup formula to an India subsidiary (Chakravarty, 43). Because of this Coca-Cola backed
and withdrew from the country.
In the meantime, India’s two target soft drink producers have gotten rich. Who were
controlling 80% of the Indian soft drink industry?

In 1993, the coco-Cola company came back to India. But the scenario of Indian soft drink
industry had been changed from 1977 to 1993. The competition in the soft drink industry had
become very tough. The major competitor at that time were Pepsi and
Parle. Parle’s best known brands includes Thump, Limca, Citra and others were Gold Spot
and Maaza. At that time Parle had a market share of 53% and Pepsi had a market share of
20%.

Now Coca-Cola had to make some strategies to survive in this tough competition. For this
Coca-Cola decided to take over Parle, so that the company can take the advantage of Parle’s
network. This decision was proved very beneficial for Coke as it had ready access to over
2,00,000 retailer outlets and 60 bottlers of Parle’s network.

The marketing strategies which were made by Coca-Cola company to win the Cola war in
1990s had been very successful as Coca-Cola company had a total market share of 48.3% in
1998.

So, the Indian soft drink industry saw a dramatic change in the decade of 1990s. All the
companies were trying to win the battle by making good marketing strategies.
These days Coke and Pepsi are using the 4Ps of marketing mix (Price, Product, Place and
Promotion) in such a way so that a good quality can be provided to the consumers at a
reasonable price to attract the consumers towards their brands.

Both the companies know that there is so much potential in the Indian soft drink industry and
the can increase their sales by making good marketing strategies. So, they are spending a
huge amount of money on advertising and other sales promotional activities of their brands.
SOFT DRINK INDUSTRY: AN OVERVIEW
It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton’s backyard in
Atlanta was brewing the first P of marketing legend. Unaware the pharmacist has given birth
to a caramel-coloured syrup, which is now the chief ingredient of the world’s favourite drink.
The syrup combined with carbonated the soft drink market. It is estimated that this drink is
served more than one thousand million times in a day.
[1]
Equally oblivious to the historic value of his actions was Frank Ix. Robinson, his partner and
book keeper. Pemberton & Robinson laid the first foundation of this beverage when an
average nine drinks per day to begin with, upping volumes as sales grew.

In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the
1950’s Colas were a daily consumption item, stored in house hold fridges. Soon were born
other non- Cola variants of this product like orange & Lemon.

Now, the soft drink industry has been dominated by three major player – (1) The New
York based Pepsi co. Inc. (2) The Atlanta based Coca Cola co. (3) The United Kingdom
based Cadbury Schweppes.

Throughout the globe these major players have been battling it. Out for a bigger chunk of the
ever-growing cold drink market. Now this battle has begun in India too.
India is now the part of cold drink war. Gone are days of Ramesh Chauhan, India’s one-time
Cola king and his bouts of pistol shooting. Expect now to hear the boon of cannons when the
Coca Cola & Pepsi co. battle it out for, as the Jordon goes a bigger share of throat. By buying
over local competition, the two American Cola giants have cleared up the arena and are
packing all their power behind building the Indian franchisee of their globe girdling brands.
The huge amount invested in fracture has never been seen before. Both players seen an
enormous potential in his country where swigging a carbonated beverage is still considered a
treat, virtually a luxury. Consequently, by world standards India’s per capita consumption of
cold drinks as going by survey results is rock bottom, less than over Neighbours Pakistan &
Bangladesh, where it is four times as much.

Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to
add muscle to its infrastructure in bottling and distribution. This is apart from money that
company’s franchised bottles spend in upgrading their plants all this has contributed to
substantial gains in the market. In Colas, Pepsi is already market leader and in certain cities
like Banaras, Pepsi outlets are on one side & all the other
Colas put together on the other. While Coke executive scruff at Pepsi’s claims as well as
targets, industry observers are of the view that Pepsi has definitely stolen a lot from its
competitor Coke.

Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image
turnaround is no small achievements, considering that since it was established in 1989, taking
the hardship route prior to liberalization and weighed down by export commitments.

Now, at present as there are three major players Coke, Pepsi and Cadbury and there is stiff
competition between first two, both Pepsi and Coke have started, sponsoring local events and
staging frequent consumer promotion campaigns. As the mega event of this century has
started, and the marketers are using this event – world cup football, cricket events and many
more other events.

Like Pepsi, Coke is picking up equity in its bottles to guarantee their financial support; one
side Coke is trying to increase its popularity through.
[2]
Eat Food, enjoy Food. Drink only Coca Cola. Eat cricket, sleep cricket. Drink only Coca
Cola. Eat movies, sleep movies. Drink only Coca Cola.

But no doubt’ that UK based Cadbury is also recognising its presence. So, there is a real
crush in the soft drink market. With launch of the carbonated organize drink Crush, few year
ago in Banaras., the first in a series of a launches, Cadbury Schweppes beverage India
(CSBI) HAS PLANNED: - The world third largest soft drink marketers all over the
country’s o wholly owned subsidiary of the London based $ 6.52billion. Cadbury Schweppes
is hoping that crush is going well and well not suffer the same fate as the Rs. 175 crore
Cadbury India’s apple drink Paella. CSBI is now with orange (crush), and Schweppes soda in
the market.

As orange drinks are the smallest of non-Cola categories that is Rs. 1100 crore market with
10% market share and Cola heaving 50% is followed by Lemon segment with 25%.
The success of soft drink industry depends upon 4 major factors viz.

Availability Visibility Cooling Range AVAILABILITY

Availability means the presence of a particular brand at any outlet. If a product is now
available at any outlet and the competitor brand is available, the consumer will go for the
outlet because generally the consumption of any soft drink is an impulse decision and not
predetermined one.
VISIBILITY

Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi
Cola and this brand is not displayed in the outlet, then its availability is of no use. The soft
drink must be shown off properly and attractively so as to catch the attention of the
consumer immediately Pepsi achieves visibility by providing glow signboards, hoarding,
calendars etc. to the outlets. It also includes various stands to display Pepsi and other
flavours of the company.

COOLING

As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the
sales. The brand, which is available chilled, gets more sale than the one which is not, even
if it is more preferred one.
RANGE

This is the last but not the least factor, which affects the sale of the products of a particular
company.

[3]
COMPANY PROFILE

[4]
 COMPANY PROFILE

Coca-Cola Enterprises, established in 1886, is a young company by the standards of the

Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-
Cola that is the foundation for this Company.
The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist, Dr. John
Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However, the
bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas
and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most
of the United States from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as independent, local businesses until the
early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company
merged some of its company-owned operations with two large ownership groups that were
for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to
form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November
21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales
were 880,000 in 1986.
In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola
Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate
bottler consolidation. As part of the merger, the senior management team of Johnston
assumed responsibility for managing the Company, and began a dramatic, successful
restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5
billion
The Coca-Cola Company is the world’s largest beverage company. They operate in more
than 200 countries & markets more than 2800 beverage products. Headquartered at Atlanta,
Georgia, they employ approximately 90500 employees all over the world. It is often referred
to simply as Coke or (in European and American countries) as Cola or Pop.

MISSION, VISION AND VALUES

The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape our
business in the future and move swiftly to prepare for what's to come. We must get ready for
tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination
for our business and provides us with a "Road map" for winning together with our bottling
partners.

Our Mission

Our Road map 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 difference

[5]
Our Vision

Our vision serves as the framework for our Road map and guides every aspect of our business
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 share owners while being mindful of our overall
responsibilities

Productivity: Be a highly effective, lean and fast-moving organization

Our Winning Culture

Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality.

Live Our Values

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 genius

Integrity: Be 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 well

Focus on the Market

Focus on needs of our consumers, customers and franchise partners

[6]
 Get out into the market and listen, observe and learn

Possess a world view

Focus on execution in the marketplace every day

Be insatiably curious

Work Smart

Act with urgency

Remain responsive to change

Have the courage to change course when needed

Remain constructively discontent

Work efficiently

Act Like Owners

Be accountable for our actions and in actions

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

[7]
COCA-COLA WORLDWIDE (BACKGROUND)

The Profile
The Coca-Cola Company is the global Soft drink industry leader, with world
headquarters in Atlanta, Georgia. The company and its subsidiaries employ nearly 30,000
people around the world Syrups, concentrates and beverages bases for Coca-
Cola, the company’s flagship brand, & over 160 other Company Soft Drink brands are
manufactured and Sold by the Coca Cold Company and its Subsidiaries in nearly 200
countries around the world. In fact, approximately 70% of company volume and 80% of
company profit come from outside the United States.
By contract with the Coca-Cola Company on its local subsidiaries, local businesses
are authorized to bottle and sell company soft drinks within certain territorial boundaries and
under conditions that ensure the highest standards of quality and uniformity.
The Coca-Cola takes pride in being a worldwide business that is always local.
Bottling and distribution operations are, with some exception, locally owned and operated by
independent business people who are native to the nations in which they are located.
The Coca-Cola company stock, with ticker symbol KO2 is listed and traded in the
United States on the New York stock exchange, common stock also is traded on the on the
Boston, Chicago, Pacific an Philadelphia Exchanges Outside the United States, Company
common stock is listed and traded on common and swiss exchanges.
The Company operating management structure consists of five geographic groups:
1. The North America Group Comprises the United States and Canada.

2. The Latin American group includes the Company’s operations across Central and South
American from Mexico to Argentina.

3. The Company’s most populated operating group, the Middle and far east group, ranges
from the Middle East to India, China, Japan and Australia.

4. The greater Europe group stretches from Greenland to Russia’s far east, including some
of the most established markets in Western Europe and the rapidly growing nations of
Eastern and Central Europe.

5. The Africa group includes the Company’s business in 50 countries in Sub Sahara Africa.

The Coca-Cola Company continues to activate sponsorships throughout the world

including associations with World Cup Soccer. The National Football leagues. NASCAR, the
Tour de France, the Rugby World Cup, COPA America and numerous local sports teams.
The Coca-Cola Company has sponsored the Olympic games since 1928.

[8]
COKE IN INDIA

Coke gained an early advantage over Pepsi since it took over Parle in 1994.
Thus, it had ready access to over 2,00,000 retailer outlets and 60 bottlers.

Thus, Coke had greater than Pepsi because it had ready access to the Parle network.
For example, in 1994 Pepsi had 20 bottlers to serve the entire country while
Coke had Parle’s 60 bottlers. In an important market like Delhi Pepsi had just one bottler
while Coke had four. On the other hand, Pepsi had taken over the Dukes Mangala of
Mumbai.
In 1993, Pepsi Foods Ltd. had control over the Rs. 1,100 - Crore Indian Soft Drinks
market. At that time, the soft drinks tycoon Ramesh Chauhan, was heading the Parle group
and at that time was deciding to explore the possibility of selling his best rolling brands to
Coke, rather than to Pepsi. Pepsi had entered the market 3 years before Coke did. Before the
Coke-Parle tie-up in '93- Ramesh Chauhan had 2 options before him- (1) to stick around,
fight it out again and hopefully, continue with his number one position. (2) to sell out to
Coca-Cola for a good return. This risk of losing out to one of the multinationals, eventually,
seemed to be throwing up the second alternative. Ramesh Chauhan told business world
(India's most popular business magazine) that "it is better to seek a compromise than to fight
a lone battle". But he was wisely simultaneously taking steps to safeguard his market share.
In a few months, Parley’s products will be launched in 250 ml instead the current 200 ml.
The indications are that the company will hold the price line. Incidentally, both Pepsi and
Coke (if it finally gets in) will cost more than local brands because of the 300% duly on the
imported ingredients. However, this scenario was taking place permineralization period and
hence implied a very high duty on imported items.
Entry of Pepsi and Coke in India or their proposals were at that time being opposed
because of the impact of first - strike on the minds of consumers. If Coca-Cola is allowed an
easy and quick entry through a window established by the government, there can be no
justification for denying similar access to Pepsi Co.
Basically, what was wrong at that time with the Coke proposal was that while the
Pepsi deal could go through under the camouflage of horticultures and agriculture
development as their proposal stated, a pure soft drinks project was not so politically
palatable (as it would greatly hamper the indigenous industry).
Coke had plans, to invest $ 20 million in India and Pepsi was going to pump in Rs.
300 crores more. Ramesh Chauhan greatest compulsion, to 90 in for the 2nd option was that
many of his biggest bottlers were preparing to desert him for Coke, since the bottlers
accounted for nearly one-third of Parle's sales. Parle's biggest bottles in the Easter region,
Genkan, accounted for 80% market share in Calcutta, felt that the future lay with Coca-Cola,
no Indian company had the financial muscle to take on Coke.
Also, there was the most convincing factor for the tie-up, that Parle's Position in the
Indian soft drinks market and Coca-Cola's marketing strengths and experience would make
an unbeatable combination. At that time according to the world’s most popular and well-
known magazine, Fortune, had rated Coke as the world's best brand.
Even Coke would greatly benefit from the tie-up, as Coke with Parle’s wide spread bottling
and distribution network, which was spread over more than a thousand towns and cities and
the gradual withdraw of Parle brand would ensure Coke would be the king. Parle's best
known brands include Thumps Up, Lima, Citra and others were GOLD SPOT and Masa.
[9]
 The biggest advantage to Parle from the tie-up would be an instant gain of $ 40
million, which could be used profitably in other ventures.
According to a report the deal was that, Parle Exports had transferred the rights of all
its reputed soft drinks brands to Coca-Cola company, USA. In short, Coca-Cola Company
became the exclusive owner of Thumps Up, Limca, Gold Spot, Citra and Maaza and could
therefore, withdraw them from the market whenever it would want to.
Under the agreement, the existing bottlers of Parle Exports would continue to produce
Parle brands under the licence from the Coca-Cola company. The U.S. Multinational
proposed to introduce its international brands -Coke, Fanta and Sprite at an appropriate time.
The Parle bottlers will be bottling these Coco - Cola brands also. The exact nature of Parle,
Coca-Cola tie-up is given below:
So, Ramesh Chauhan, sold his soft drink brands of the U.S. Multinational for ($
40 million) and is presently a major Coke bottler. Delhi - based Parle Chairman gave up his
ownership of his soft drinks brand (Thumps Up, Limca, Citra and Gold Spot) and was
awarded the bottling franchisee for Delhi, Bombay, Surat and Ahmedabad. Coke depends on
the 54 bottling plants which it was inherited from the Parle by out.
So, logically all brands of Parle as well as Coca-Cola will be marketed together. The only
problem being that Parle bottlers would not be able to meet the peculiar quality requirements
of Coke.
MARKET SHARES IN % FIGURES (2012-13)

Pure Drinks
10%
Others
Pepsi 4%
26%

Coke + Parle
60%

Model of Brand Selection

Customer buys on value

Value equals quality relative to price

Quality includes all non-price attributes that count in the purchase decision

 Product

 Customer service

Quality, price and value, are not absolute, but relative to competitors.

Quality Product

Value Customer Service

[10]
Price

ASSUMPTIONS

Improvements in perceived quality in turn lead to high market share and market leaders
spend to build their franchise.

Companies spend a larger share of their sales income on advertising and tend to be much
more profitable than companies that spend less.

Brands that spend a much larger than average share of their sales on advertising earn an
average return on investment of 32% while brands that advertise much less than their
competitors average only 17%.

Increases in advertising expenditure are closely correlated with gains in master share
(even after adjusting for the effects of other factors).

Sales promotions like price-off, etc. has no significant correlation with market share
changes (only its effect on consumer behaviour is observed).

To some extent companies with high, quality simply have more to say in their advertising,
so they are likely to spend more money saying it.

Market-perceived quality is a more important measure of competitiveness than market

share for 2 bey reasons:

1. Most market leaders had to develop quality leadership to achieve their large share
position superior quality is the base upon which market leadership is usually built.

2. Generally according to data, business that begin with a large share of the market tend
to lose share. By contrast, those that begin with superior quality tend to hold or gain
share.

Therefore, market share is often a lagging indicator of a company's performance; quality is

the clear key to success.
Pepsi is a perfect example, since it came to India in 1989 with a market share of 0% it
now in 1998 enjoys a share of 45.2% in the market.
But in case of soft drink, the 2 Cola giants Pepsi and Coke cannot to a great extent
differentiate on their brands (but of course in terms of taste and fizz), a lot has to be spent on’
ads, packaging and promotion, i.e., making it more easily available.
However, recently in the world's famous business magazine, fortune, Coca Cola was
rated as the world's number one brand.
It must be noted that the brand also has to work in different ways from market to
market. A constant check on, brand management techniques, on the promotion of the brand,
[11]
in a consistent and robust manner, is essential for the brands future. One point where Coke
scores over Pepsi has been in production and distribution system internationally and
nationally (because of access to Parle's distribution network) which ensures the product
reaches the consumers in perfect condition.
The advertising message that is conveyed to the people in the advertising slogan
"Always the real thing" (1993), is a credible statement about the brand's virtues. What
reinforces this conviction amongst, consumers, apart from the reassurance provided by the
consistent quality of the Coca Cola product, is that competitive brands all seek to emulate
Coca Cola. There is very little attempt on their part to create a distinctive positioning and
personality for their brands. A vast complex network of production, distribution and
marketing has kept the brand in front.
Coca Cola has entered new markets and also developing market economics (like
India) with much-needed jobs.
Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its executive
committees, employees, BOD, company presidents but above all from the consumer.
Coke's red colour catches attention easily and also the Diet Coke which it introduced
was taking the Cake, as Pepsi has not come out with this in India.
Ever since Coke's entry in India in 1993, Coke made a comeback (after quitting in
1977), in October 24 in Agra, the city was flooded by trucks, there wheelers, tricycle cards-
all with huge red Coke-emblazoned umbrellas. Retailers were displaying their Coke bottles
in distinctive racks, also with specially-designed iceboxes to keep Coke bottles cold. This
was one big jolt to Pepsi.

[12]
About the Topic

[13]
MARKETING MIX

WHAT IS A MARKETING MIX?

It is a set of controllable tactical marketing tools - product, price, place & promotion -
that the firm blends to produce the response it wants in the target market.

THE FOUR PS OF THE MKT’S MIX

PRODUCT
Product Variety PRICE
Quality List Price
Designs MRP
Features Discounts
Brand name TARGET Allowances
Packaging CUSTOMERS Pay Period
Sizes INTENDED CR Terms
Services POSITIONING
Warranties
Returns

PLACE
PROMOTION
Channels
Advertising
Coverage
Personal Selling
Assortments
Sales Promotion
Locations
Public Relation
Transportation
Logistics

Effective marketing would be blending the marketing mix elements into a coordinated
programme designed to achieve the company’s marketing objective by delivering value to
consumers.

Cola - Cola has always worked upon their marketing mix tools since its entry into
India and Coke’s objective has been to strengthen their brand in important segments of the
market and to gain a competitive edge over Pepsi brands.

[14]
MARKETING MIX OF COKE

a) PRODUCT

Coke was launched in India in Agra, October 24, in '93', soon after its traditional all
Indian launch of its Cola. at the sparking new bottling plants at Hathra, near Agra. Coke was
back with a bang after its exit in 1977.

Coke was planning to launch in next summer the orange drink, Fanta-with the clear
lemon drink, sprite, following later in the year.

Coke already owns more brands than it will over need, since it has bought out Ramesh
Chauhan. Coke just needs to juggle these brands around dextrously to meet its objectives, to
ensure that Pepsi does not gain market share in the process.

For if a vacuum develops, it is Pepsi which has the brand muscle and the distribution
network to grab customers today-not Coke. But Coke could not reduce its marketing support
for Thumps Up until its own Cola would hit the four major metros (Delhi. Bombay, Calcutta
and Madras) Therefore, Coke had to give its existing levels of support for Parle's brands and
would push Thumps Up and Limca. Coke has plans to' use quality and hygiene as USPs.
Their aim seems to be to expand market by market, Learning from their mistakes.

In, 1998 Coke's product line includes, Coca-Cola, Thumps Up, Fanta, Gold Spot,
Maaza, Citra, Sprite, Bisleri Club Soda and Diet Coke.

All India Market Share ‘98

Overall 48.3%

Coca-Cola 10.8%

Thumps up 16%

Fanta 5%

Limca 10%

Gold Spot 1.5%

Others 5%

[15]
PACKAGING

Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and
different packaging i.e., 200 ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. Bottle
fountain Pepsi, and bottles of 1 and 1.5 litre

PRODUCT POSITIONING

One important thing must be noticed that Thumps Up is a strong brand in western and
southern India, while Coca Cola is strong in Northern and Eastern India. With volumes of
Thumps Up being low in the capital, there are likely chances of Coca Cola slashing the prices
of Thumps Up to Rs. 5 and continue to sell Coca Cola at the same rate. Analysts feel that this
strategy may help Coke since it has 2 Cola brands in comparison to Pepsi which has just one.

Thumps Up accounts for 40% of Coca Cola company's turn over, followed by Coca
Cola which has a 23% share and Limca which accounts for 17% of the turnover of the
company. (Thumps up being the local drink, its share in the market is intact, forcing the
company to service the brand, as it did last year Mr. Donald short CEO, Coca Cola India, said
that, " we will be absolutely comfortable if Thumps Up is No. 1 brand for us in India in the
year 2005. We will sell whatever consumers wants us to". Coca Cola India has positioned
Thumps up as a beverage associated with adventure because of its strong taste and also
making it compete with Pepsi as even Pepsi is associated with adventure, youth.

[16]
MARKETING MIX OF COCA-COLA

Firstly, we will look at how Coca-Cola has used their marketing mix. The marketing mix is
divided up into 4 parts; product, price, promotions and place.

1. Product:

The product (Coca-Cola soft drink) includes not just the liquid inside but also the packaging.
On the product-service continuum we see that a soft drink provides little service, apart from
the convenience. Soft drinks satisfy the need of thirst. However, people are always
different, some want more and others want less. Therefore, Coca-Cola has made allowances
for that by providing many sizes. We also have particular tastes, and again they have
provided several options. So, although thirst is what is needed to be satisfied and that is the
core benefit, we are receiving other benefits in the taste and size. Coca-Cola has developed
several different flavours and sizes as mentioned above, but also several brands such as
Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus making full use
of the market to maximize sales.

The product is convenient, that is - bought frequently, immediately, and with a minimum of
comparison and buying effort. The appearance of the product is eye catching with the bright
red colour. It has a uniquely designed bottle shape that fits in your hand better, and creates a
nicer & more futuristic look.

The quality of the soft drink is needed to be regularly high. Sealed caps ensure that none of
the "fizz" is lost. The bottles are light, with flexible packaging, so they won't crack or leak,
and are not too heavy to casually walk around with. The cans are also light and safe.

[17]
The product range of Coca-Cola includes:

Coca-Cola
Coca-Cola classic
caffeine free Coca-Cola
diet Coke
caffeine free diet Coke
diet Coke with lemon
Vanilla Coke
diet Vanilla Coke
Cherry Coke
diet Cherry Coke
Fanta brand soft drinks
Sprite
diet Sprite
Sprite Remix

Product Lifecycle of Coke:

Product life cycle has four phases

1. Introduction
2. Growth
3. Maturity
4. Decline.

The markets where Coke is a dominant player are United States of America, Europe and
Asia, Africa. There is a vast difference in terms of above given phases for example, in U.S.A
& Europe it has reached maturity stage where it can’t expand its market more but if we
consider Asia, it is still in the growth phase.

Coca-Cola is currently going through the maturity stage in Western countries. This maturity
stage lasts longer than all other stages. Management has to pay special attention to products
during this stage of the product life-cycle. During the maturity stage, products usually go
through a slowdown in sales growth. According to Coca-Cola’s 2001 annual report, sales
have increased by 1.02% compared to last year. This percentage has no comparison to the
high level of growth Coca-Cola enjoyed during its growth stage. To add a little variation
Coca-Cola took the Coca-Cola Classic and added variations to it, including Cherry Coke,
Vanilla Coke and Diet Coke. Also, Coca-Cola went from 6-oz. glass bottles to 8-oz. cans to
plastic litter bottles, all helping increase consumption.

[18]
 COCA-COLA

2. Price:

Like any company who has successfully endured a century of existence, Coca- Cola has had
to remain tremendously fluent with their pricing strategy. They have had the privilege of a
worthy competitor constantly driving them to be smarter, faster, and better. A quote from
Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca-Cola
Company didn't exist, we'd pray for someone to invent them." states it simply. The
relationship between Coca-Cola & Pepsi is a healthy one that each corporation has learned to
appreciate.

Throughout the years Coca-Cola has made many pricing decisions but one might say that
their ultimate goal has always been to maximize shareholder value. As Cola consumption has
decreased in the US Colas have come to realize the untapped international market. In 2003
both Coke and Pepsi had a solid presence in India and had each introduced a 300mL bottle.
In order to grab market share Pepsi began to drop prices (even with summer approaching,
which was contrary to policy in America). Shortly thereafter, Coca-Cola decided to drop their
prices slightly, but focused on the reduced price point of their 200mL container. Coca- Cola
planned to use the lower price point to penetrate new cities that were especially price
sensitive. The carbonated soft drink market in India is nearly 37% of the total beverage
market there.
This low-price strategy was not unfamiliar to Coca-Cola. Both Coke & Pepsi utilized a low-
price strategy in the early 1990s. After annihilating the low-price store brands, Coke chose to
reposition itself as a "Premium" brand and then raise prices.
Coca-Cola products would appear, on the shelf, to have the most expensive range of soft
drinks common to supermarkets, at almost double the cost of no name brands. This can be
for several reasons apart from just to cover the extra costs of promotions, for which no name
brands do without. It creates consumer perceptions and values. When people buy Coca-
[19]
Cola, they are not just buying the beverage but also the image that goes with it, therefore to
have the price higher reiterates the fact that the product is of a better quality than the rest and
that the consumer is not cheap. This is known as value-based pricing and is used by many
other industries in attracting consumers. In India, the average income of a rural worker is
Rs.500 a month. Coca Cola launched a 200 ml bottle for just Rs.5, an affordable amount on
the pockets of the rural audience.

3.Place:

Coca-Cola entered foreign markets in various ways. The most common modes of entry are
direct exporting, licensing and franchising.
Besides beverages and their special syrups, Coca-Cola also directly exports its merchandise
to overseas distributors and companies. Other than exporting, the company markets
internationally by licensing bottlers around the world and supplying them with the syrup
needed to produce the product.
There are different types of franchising. The type that is used by Coca-Cola Company is
manufacturer-sponsored wholesaler franchise system. It is very comparable to licensing but
the only difference is that the finished products are sold to the retailers in local market.
Coca Cola has managed their company’s marketing and sales strategy within channels. Have
you ever considered the significance of the Coke vending machine to the success and
profitability of the Coca Cola company? This channel is direct to consumer and vending
machines often have little to no competition and no trade or price promotions.
The Coke Company operates three primary delivery systems for its business channels:
Bulk delivery for the channels of large Supermarkets, Mass Merchandisers and Club
stores;
For smaller channels Coke does advanced sale delivery for convenience stores, drug
stores, small supermarkets and on-premise fountain accounts.

Full-service delivery for its full-service vending customers.

Key Channel Listing

Supermarkets

Convenience Stores

Fast Food

Petroleum Retailers

Chain Drug Stores

Hotels/Motels/Resorts

Mass Merchandisers

[20]
U.S. DOD Military Resale retail commands: AAFES, NAVRESSO and
DECA

Vending

[21]
Marketing strategy:

Our local marketing strategy enables Coke to listen to all the voices around the
worldasking for beverages that span the entire spectrum of tastes and occasions. What
peoplewant in a beverage is a reflection of which they are, where they live, how they
work and play,and how they relax and recharge. Whether you're a student in the United
States enjoying arefreshing Coca-Cola, a woman in Italy taking a tea break, a child in
Peru asking for a juicedrink, or a couple in Korea buying bottled water after a run
together, we're there for you.We are determined not only to make great drinks, but also
to contribute to communitiesaround the world through our commitments to education,
health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping
our business decisions to improve the quality of life in the communities in which we do
business. It's a special thing to have billions of friends around the world, and we never
forget it.

Market Positioning:

Product Range:

The total range of Coca Cola Company in India includes:

 Coke.

 Sprite.

 Fanta.

 Diet Coke.

And company offers their products in different bottle sizes these includes:

 SSRB (standers size returnable bottle)

 LRB (litter returnable bottle)

 NRB (no return bottle) or disposable bottle

 PET 1.5 (1.5 litter plastic bottle)

 CANS (tin pack 330 ml)

Packing:
[22]
Coca cola products are available in different packing

 24 regular bottle shell

 6 bottle pack for 1.5 pets

 12 bottles in a pack for disposable bottle

 24 cans in one pack.

Pricing Strategy:

Trade Promotion:

Coca Cola Company gives incentives to middle men or retailers in way a they offer them
free samples and free empty bottles, by this these retailers and middle man push their
product in the market. And that’s why coca cola seen more in the market. And they have
a good sale in the market because according to the expert which product seen more in
the market that sells more. “Seen as sold” They do agreements with a shop keepers and
stores to exclusive sale in that stores. These stores are called as KEY accounts in their
local language. And coke also invest heavy budget on these stores and offers them free
samples and free bottles and some time cash incentives.

Different Price in different seasons:

Some times Coca Cola Company changes their product prices according to the season.
Summer is supposed to be a good season for beverage industry in India. So in winter
they reduce their prices to maintain their sales and profit. But normally they reduce the
prices of their pet bottles or 1 litter glass bottle

Promotion strategies:

Getting shelves:

They gets or purchase shelves in big departmental stores and display their products in
that shelves in that style which show their product more clear and more attractive for the
consumers.

Eye Catching Position:

[23]
Salesman of the coca cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion:

Company also do sponsorships with different college and school’s cafes and sponsors
their sports events and other extra curriculum activities for getting market share.

UTC Scheme:

UTC mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.
This scheme is very much popular among children.

Distribution Channels:

Coca Cola Company makes two types of selling

 Direct selling

 Indirect selling

Direct Selling:

In direct selling they supply their products in shops by using their own transports. They
have almost 450 vehicles to supply their bottles. In this type of selling company have
more profit margin.

Indirect Selling:

They have their whole sellers and agencies to cover all area. Because it is very difficult
for them to cover all area of India by their own so they have so many whole sellers and
agencies to assure their customers for availability of coca cola products.

Facilitating the product by infrastructure:

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

 Vizi cooler

 Freezers

[24]
 Display racks

 Free empty bottles and shells for bottles

Advertisement:

Coca Cola Company use different mediums:

 Print media

 Pos material

 Tv commercial

 Billboards and holding

 Print Media: They often use print media for advertisement. They have a separate
department for print media.

 POS Material: Pos material mean point of sale material this includes: posters and
stickers display in the stores and in different areas

 TV Commercials: As everybody know that TV is a most common entertaining

medium so TV commercials is one of the most attractive way of doing advertisement.
So Coca Cola Company does regular TV commercials on different channels.

 Billboards and Holdings: Coca cola is very much conscious about their billboards
and holdings. They have so many sites in different locations for their billboards.

Expectation from the coming years:

Every thing starts from the attitude of consumer’s behavior. And the basic key to attract
the consumers is to throw the “money away”. And positive feeling felling with the
brand, which they used to have Coke wants to advertise their products heavily in the
coming year. And it will take the 10% of their profits. And when we take it as a global
level it is $ I billion. Coming year is the challenging year for the industry of Coke. They
have to take lots of decisions that how to increase the production and where they have to
spend money. For gaining success in coming year they have to have some important
things like:

1.Loyal consumers are important for company’s success.

2.Workers should be the brand centric not the promotion centric.
[25]
3.They should know how much to for the brand activities.
4.They should also know that how much to do with the promotion activities for brand.

How Coke Determine the Yearly Budget:

Coke determines its yearly budget by the

 Sales volume

 Profitability

 Target volume

Sales Volume: Coke determines its yearly budget through the sales volume. They first
concentrate on the thing is “what is the condition of their sales?” if the condition is good
of their sales then they definitely increase their production and sales volume. Otherwise
they concentrate on their old strategies.

Profitability: The second thing through which they determines budget is the “profit” .if
they getting profits with the high margin, then they definitely want to increase their
profits in the next coming year. Every organization runs on the basis of getting high
profits. No organization wants to face Loss in their business. To get profit is the first
priority of the Coke.

Target Volume: To run the business every industry has some targets, which they want
to achieve in a specific time period. If industry achieves those goals in that period then
for the coming year it increases the volume of the target. So Coke Follow the same thing
it has also some goals and targets to achieve in the given time period. When they
succeed to achieve that target then they increase their target volume in the next year.

Sale Promotion Activities:

Coca Cola Cricket:

Cricket the most sought after; watched & played game in India .the game of cricket has
been owned by various brands in the industry for the promotion of their products over a
period of time. It has ranged from tobacco to lubricants to communication companies to
banks to airlines & lately to the beverage industry. The competition has become tougher
& tougher as the time has progressed.

[26]
Coca-Cola signed a sponsorship agreement with eight of India’s National cricket players.
Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it
consumers & masses invested in the opportunity and launched a massive campaign on
mass media showing all these cricket stars endorsing & complimenting Coca- Cola
brand. The Coca-Cola Company developed three TV commercials & four testimonial
ads with the player & ran them on the national net work during various cricket matches.
These bold steps taken by the Coca-Cola marketing unit acclaimed them many
acknowledgements across the board. This campaign helped Coca-Cola to establish its
association with the game & the player

Coca-Cola Concerts:

In distinct style, lyrics & songs have made him an instant hit among the masses in India.
His enormous popularity in the country & abroad is supported by Coca-Cola’s
commitment towards providing healthy & fun-filled entertainment for the youth of India.
Coca-Cola brought to his fans through holding concerts & featuring in a much-
appreciated TVC & MMT featured throughout the country. The TVC campaign focused
on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in
short moments that he had to himself during a concert. Coca-Cola’s brand positioning of
providing deep down refreshment for the body, soul & mind were captured accurately in
the TVC & depicted aptly how the drink completes the moment for them.

Coca-Cola Food Mela:

With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the
people of India, to a festive food festival comprising of 50 restaurants, spread out all
over the bustling city’s map. The promotion saw the avid families & friends enjoying the
delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.

Coca-Cola Basant Festival:

In February the month of basant the parks & horticulture authority in Lahore nominated
Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival
atmosphere by making the festival free to enter & decorating all main roads in Lahore
with illuminated kites. Coca-Cola also hosted a concert of pop idol, had children’s
parade & held the Coca-Cola kite flying championship during the basant festival. Now
“where there is basant there is Coca-Cola”, it has been impossible to envisage basant
without Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by

[27]
adding more life to the festival, giving the consumer a unique experience which they had
never tasted before.

[28]
 PORTER'S FIVE FORCES MODEL OF COCA COLA
BARGAINING POWER OF SUPPLIERS

Most of the ingredients needed for beverages and snacks are basic commodities such as
potatoes, flavour, colour, caffeine sugar, packaging etc. So, the producers of these
commodities have no bargaining power over the pricing for this reason; the suppliers in this
industry are weak.

Bargaining Power of Buyers

Buyers in this industry have the bargaining power, because main source of the revenue and
market share in beverage and food industry are fast food fountain, convenience stores food
stores vending etc. The profit margins in each of these segments noticeably demonstrate the
buyer power and how special buyers pay diverse prices based on their power to bargain.

Threat of New Entrant

There are many factors that make it hard for new player to enter the beverage industry some
of important factors are brand image and loyalty, advertising expense, bottling network, retail
distribution fear of retaliation and global supply chain.

Brand Image / Loyalty

Pepsi and Coke continuously focusing on increasing their biggest beverage and food
products, they have built some of the globe’s strongest brands that are loved by consumers
throughout the world. Innovative Marketing has leveraged their worldwide brand-building
strength to attach with consumers in significant ways and impel the growth globally. These
all campaign results in higher number of loyal customers and strong brand equity throughout
the world. In 2011, Coca-Cola was declared the world’s most valuable brand according to
Interbrand’s best global brand. This makes it impossible for new entrance to enter the
beverage industry easily.

Advertising Spend

[29]
Cock and Pepsi has very effective advertising campaign, their advertising also represent the
cultures of different countries. They also sponsor different games and teams and also featured
in countless television programs and films. The marketing and advertising expense were
approximately $ 15 billion. This makes landscape very harder for new players to succeed.

Bottling Network

Pepsi and Coca Cola have lived and exclusive contracts with bottler’s that have privileges in
all over the world. These franchise agreements or contracts forbid bottler’s from keeping
competitor’s brands. Coke has the world's largest beverage distribution network; consuming
in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion
servings a day. Coca-Cola is sold in restaurants, vending machine and stores in more than
200 countries. PepsiCo has adopted the globe’s most powerful “go-to-market systems”,
serving more than 10 million outlets a week by operating greater than 100,000 different
routes, and producing more than $300 million in retail sales per day. They have also
purchased some of the bottlers, this makes difficult for new players to get bottler contracts or
to build their bottling plants.

Retail Distribution

Coke and Pepsi offers 16 to 21 percent margins to retailers for the space they present. These
margins are substantial for retailers and this makes it very hard for the new player to persuade
retailers to carry their products.

[30]
Fear of Retaliation

It is very difficult for new player to enter in this industry because; they will be highly
retaliating by local players in local markets and in global scenario they have to face the
duopoly of Coke and Pepsi. This ultimately could result in price war which affects the new
player.

Global Supply Chain

Cock Bill & Melinda Gates Foundation and non-profit Techno Serve initiated a partnership to
facilitate more than 50,000 small fruit farmers in Kenya Uganda to increase their productivity
and double their incomes by 2014. Coke has significant opportunities within global supply
chain to encourage and develop more sustainable practices to benefit consumers, customers
and suppliers. While; it is still in the premature stages of exploring these opportunities and
dedicated to the economic vitality and health of the farming communities our supply chain
engages. Pepsi promotes and support sustainable agriculture not only because it makes good
business sense, it purchases million tons of potatoes and fruits.

Threat of Substitute Products

Large numbers of substitutes are available in the market such as water, tea, juices coffee etc.
But firms counter them with innovative marketing and massive advertising which build
growth for their brands by highlighting their benefits. Players also differentiate themselves by
well-known global trade marks, brand equity and availability of the products which most of
the substitute products cannot contest. To protect themselves from competition players in
soft drink industry offer Diversify products such as such as Pepsi offers soft drinks (Pepsi,
Slice, Mountain Dew), beverages (Tropicana Juices, Dole Juices, Lipton tea, Aquafina
bottled water, Sport drinks, Tropicana Juices), Snacks (Roald Gold pretzels and Frito-Lay).
Coke also offers most diversified range of products such as Cola-Cola Cherry, Coca-Cola
Vanilla, Diet Coke, Diet Coke Caffeine-Free, Caffeine-Free Coca-Cola and range of lime or
coffee and lemon.

[31]
Competitive Rivalry within an Industry

Beverage industry competition can be classified as a Duopoly with Pepsi and Coca Cola. The
market share of other competitors is too low to encourage any price wars. Cola-Cola gets
competitive advantage through the well-known global trade marks by achieving the premium
prices. It means Cola-Cola have something that their competitors do not have. While Pepsi
has leveraged its worldwide brand-building strength to attach with consumers in significant
ways and impel the growth globally

[32]
PEST ANALYSIS OF COCA COLA COMPANY

As the leading beverages company in the world, Coca Cola almost monopolizes the entire
carbonated beverages segment. Beside it, Coca Cola also maintain their reputation as the
leading company in the world using PEST Analysis so that Coca Cola can examine the
macro-environment of Coca Cola’s operations.

Political
When Coca Cola had decided to enter a country to distribute the products, Coca Cola was
monitoring the policies and regulations of each country. For the example, when entering
Moslems country such as Indonesia or Malaysia, Coca Cola followed the regulation by
adding “Halal” stamp in each Coca Cola’s products. In this case, Coca Cola has no political
issues in this matter.

Economic
Coca Cola also has low growth in the market for carbonated beverages (North America). The
market growth was 1% in 2004. For stimulating the growth, Coca Cola had spent high budget
of advertisement to endorse the customers.

Social
Nowadays, customers tend to change their lifestyle. Customers more aware about health
consciousness by reducing in drinking carbonated beverages to prevent diabetes or other
diseases. As a result, Coca Cola’s demand for carbonated beverages has decreased and the
revenues also decreased. Thus, Coca Cola diversify the products by adding production lines
in tea (Nestea), juices (Minute Maid), mineral water (Dasani and Ades), and sport drinks
(Powerade), and others.

Technological
Because of the developing technology, Coca Cola has advanced technology in producing the
products. Then, Coca Cola made innovations by giving flavours to the Coke, such as Cherry
Coke, Diet Coke, Coca Cola Zero, Coke with Lime, and others. But the customers still prefer
the original taste of traditional Coke; it can be seen by the high demands in traditional Coke.

[33]
Statement of Problem

[34]
Objectives

[35]
 OBJECTIVE OF THE STUDY

1. To study the marketing strategies adopted by Coca-Cola

2. To study the advertising effectiveness Coca-Cola on customer

3. To analyse the awareness of consumer regarding Coca-Cola.

4. To help the company for further changes in the quality, pricing, and policies.

5. To study the comparison between Coca-Cola and other beverage companies.

6. To study the market share of Coca-Cola.

7. To study the marketing mix programme.

8. To study market status and goodwill of Coca-Cola company.

[36]
PEDAGOGY

[37]
Research Methodology

[38]
RESEARCH & METHODOLOGY

Research is defined as human activity based on intellectual application in the investigation of

matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe. Research can use the scientific
method, but need not do so. Scientific research relies on the application of the scientific
method, a harnessing of curiosity. This research provides scientific information and theories
for the explanation of the nature and the properties of the world around us. It makes practical
applications possible. Scientific research is funded by public authorities, by charitable
organizations and by private groups, including many companies. Scientific research can be
subdivided into different classifications according to their academic and application
disciplines. Historical research is embodied in the historical method. The term research is
also used to describe an entire collection of information about a particular subject.

The selection of the particular research approach depends on the kind of information
required. Qualitative research collects, analyzes, and interprets data that cannot be
meaningfully quantified, that is, summarized in the form of numbers. For this reason,
qualitative research is sometimes referred to as soft research. “Quantitative Research” calls
for very specific data, capable of suggesting a final course of action. A primary role of
quantitative research is to test hunches or hypotheses. These suggest that qualitative approach
is a soft research approach in which collected data cannot be meaningfully quantified and
more importantly in this approach non-structured research is conducted. But so far as
quantitative research approach is concerned, through this approach structured research is
conducted with approaching larger respondents and the collected data can be meaningfully
quantified. Research data can be collected either in the form of secondary or primary or both.
Secondary Data usually factual information can be obtained through secondary data that has
already been collected from other sources and is readily available from those sources. The
definition and characteristics of secondary data presented above suggest us that secondary
data are data that have already been collected for purpose other than the problem in hand.
Before detailing as how and what secondary data were collected in this research, in would be
worth to examine the advantages and disadvantages of such data.

Secondary data are easily accessible, relatively inexpensive, and quickly obtained. Some
secondary data are available on topics where it would not be feasible for a firm to collect
primary data. Although it is rare for secondary data to provide all the answers to a non-

[39]
routine research problem, such data can be useful in a variety of ways. Primary data is
collected for the specific purpose of addressing the problem at hand. The collection of
primary data involves various steps. Thus obtaining primary data can be expensive and time
consuming. These suggest that primary data are those data that are collected for the particular
purpose of research in hand. The disadvantage of collecting primary data is that it is lengthy
and resource and time consuming process, but the advantage of primary data is that they are
first hand information and comparatively more reliable. A researcher originates primary data
for the specific purpose of addressing the problem at hand. The collection of primary data
involves all six steps of the marketing research process. Obtaining primary data can be
expensive and time consuming.  

Secondary Data:

I propose to get the secondary data from:

a. Previous in house studies done in the COCA COLA INDIA LTD.

b. company websites, journals and web articles

Research Funding:

Most funding for scientific research comes from two major sources, corporations (through
research and development departments) and government (primarily through universities and
in some cases through military contractors). Many senior researchers (such as group leaders)
spend more than a trivial amount of their time applying for grants for research funds. These
grants are necessary not only for researchers to carry out their research, but also as a source
of merit.

Some faculty positions require that the holder has received grants from certain institutions,
such as the US National Institutes of Health (NIH). Government-sponsored grants (e.g. from
the NIH, the National Health Service in Britain or any of the European research councils)
generally have a high status.

The goal of the research process is to produce new knowledge, which takes three main forms
(although, as previously discussed, the boundaries between them may be fuzzy):

 Exploratory research, which structures and identifies new problems

 Constructive research, which develops solutions to a problem

 Empirical research, which tests the feasibility of a solution using empirical evidence
[40]
Research can also fall into two distinct types:

 Primary research

 Secondary research

Research is often conducted using the hourglass model Structure of Research. The hourglass
model starts with a broad spectrum for research, focusing in on the required information
through the methodology of the project (like the neck of the hourglass), then expands the
research in the form of discussion and results.

Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific
topic. In fact research is an art of scientific investigation. The Advanced Learner’s
Dictionary of Current English lays down the meaning of research as “a careful
investigation or inquiry especially through search for new facts in any branch of
knowledge,” Rcdman and Mory define research as a “systematized effort to gain new
knowledge.”2 Some people consider research as a movement, a movement from the
known to the unknown; It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller understanding of the
inquisitiveness is the mother of aN knowledge and the method, which man employs for
obtaining the knowledge of whatever the unknown, can be termed as research.

Research is an academic activity and as such the term should be used in a technical
sense. According to Clifford Woody research comprises defining and redefining
problems, formulating hypothesis or suggested solutions; collecting, organising and
evaluating data; making deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis. D.
Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define research as
‘he manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of
theory or in the practice of an art.”3 Research is, thus, an original contribution to the
existing stock of knowledge making for its advancement. It is the pursuit of truth with
the help of study, observation, comparison and experiment. In short, the search for
knowledge through objective and systematic method of finding solution to a problem is
research. The systematic approach concerning generalization and the formulation of a
theory is also research. As such the term ‘research’ refers to the systematic method

[41]
consisting of enunciating the problem, formulating a hypothesis, collecting the facts or
data, analyzing the facts and reaching certain conclusions either in the form of
solutions(s) towards the concerned problem or in certain generalizations for some
theoretical formulation.

Research Approach:

The above description of the types of research brings o Light the fact that there arc two
basic approaches to research, viz,, quantitative approach and the qualitative approach.
The former involves the generation of data in quantitative form which can be subjected
to rigorous quantitative analysis in a formal and rigid fashion, This approach can be
further sub classified into inferential, experimental and simulation approaches to
research. The purpose of inferential approach to research is to form a data base from
which to infer characteristics or relationships of population. This usually means survey
research where a sample of population is studied (questioned or observed) to determine
its characteristics, and ii is then inferred that the population has the same characteristics.
Experimental approach is characterized by much greater control over the research
environment and in this case some are manipulated to observe their effect on other
variables. Simulation approach involves the construction of an artificial environment
within which relevant information and data can be generated. This permits an
observation of the dynamic behaviour of a system under controlled conditions, The term
‘simulation’ in the context of business and social sciences applications refers to
operation of a numerical model that represents the structure of a dynamic process. Given
the values of initial conditions, parameters and exogenous variables, a simulation is run
to represent the behaviour of the process over simulation approach can also be useful in
building models for understanding future conditions.

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviour, Research n such a situation is a function of researcher’s insights
and impressions. Such an approach to research generates results either in non
quantitative form or in the form which are not subjected to rigorous quantitative
analysis. Generally, the techniques of focus group interviews, projective techniques and
depth interviews are used. This entire arc explained at length in chapters that follow.

[42]
Data Analysis and Interpretation

[43]
 DATA ANALYSIS

Q1. How many years you have been working in this organization?

Less than 2 years 20%

2 to less than 4 years 40%

4 to less than 6 years 25%

More than 6 years 15%

Working period in the organization

Working Period in the Organization

45% 40%
40%
35%
30% 25%
25% 20%
20% 15%
15%
10%
5%
0%
Less than 2 years 2 years to less than 4 4 years to less than 6 More than 6 years
years years

Interpretation

The above mentioned graph shows that 40% respondents are working in the organization
from 2 years to less than 4 years and 15% respondents working in the organization more
than 6 years.

[44]
Q2. Which one is the most competitive advantage for Coca Cola in soft drink
market?

Local Expertise 12%

Business Community 14%

Service Quality 17%

Flexibility 19%

Cost Advantage 23%

Value Added Services 6%

Knowledge of Expert Services 8%

Others 1%

Most Competitive Advantages

Most Competitive Advantages

25% 23%
19%
20% 17%
14%
15% 12%
10% 8%
6%
5%
1%
0%
Other
Quality
Community

Service

Flexibility

Advantage
Expertise

Knowledge
added
services
Value

of expert
Local

Business

services
Cost

Interpretation

The above mentioned graph shows that according to the 23% respondents cost advantage
is the most competitive advantage for Coca Cola and according to the 23% respondent’s
17% respondents service quality is the most competitive advantage for Coca Cola.

[45]
Q3. Which one is the most competitive disadvantage for the company?

Lack of Customer's Knowledge 6%

Limited access to skills 10%

Government regulation 13%

Market competition 16%

Scarcity of resources 22%

Economic scenario 19%

Production process 9%

Technology 4%

Others (Please specify) 1%

Competitive Disadvantages

Most Competitive Disadvantage

25% 22%
19%
20% 16%
15% 13%
10% 9%
10% 6%
4%
5% 1%
0%
specify)
Others
(Please
Limited

Economic
access to

Production
scenario
Knowledge

Scarcityof
competition
skills

Technology
Customer’s

resources
Government
regulation
Lackof

process
Market

Interpretation

The above mentioned graph shows that according to the 22% respondents scarcity of
resources is the most competitive disadvantage for Coca Cola but according to the 9%
respondent’s production process is the most competitive disadvantage for Coca Cola.

[46]
Q4. Please tell me your current year sales level as compared to previous five year
average.

Below 45
Average %

35
Average %

Above 15
Average %

Unknown 5%

Current year sales level as compared to previous five year average

Sales Level
50% 45%
45%
40% 35%
35%
30%
25%
20% 15%
15%
10% 5%
5%
0%
Below Average Average Above Average Unknown

Interpretation

According to 35% respondents, the current year sales level as compared to previous five
year is average but 45% replied that the current year sales level as compared to previous
five is below average.

[47]
Q6. How would you describe the present economic environment insofar as your
company is concerned?

3
Growt 8
h %

3
Recess 9
ion %

Depres 5
sion %

1
Stagna 7
tion %

Inflatio 1
n %

Present economic environment

Business Environment Condition

45%
38% 39%
40%
35%
30%
25%
20% 17%
15%
10% 5%
5% 1%
0%
Growth Recession Depression Stagnation Inflation

Interpretation

[48]
39% respondents describe the present economic environment in so far as recession but
38% respondents describe the present economic environment in so far as growth.

[49]
Q7. Please tell me about the Changes in your marketing strategies over time?

25
Value marketing %

Branding & 30
differentiation %

20
Raising Prices %

10
Low Cost Leadership %

Competitor 15
Benchmarking %

Changes in marketing strategies

Changes in your marketing strategies

35%
30%
30%
25%
25%
20%
20%
15%
15%
10%
10%
5%
0%
Value marketing Branding & Raising Prices Low Cost Competitor
differentiation Leadership Benchmarking

Interpretation

According to 30% respondents, branding & differentiation changes in their marketing

strategies but 20% respondents replied that raising prices changes in their marketing
strategies.

[50]
Q8. Please tell me, your organization taken what actions in response to the sales
level?

30
Cutting cost %

Introduction of new 17
product %

Investment plans on 21
hold %

25
Reducing prices %

Merger with other 7%

Response to sales level

Increasing the sales Level

35%
30%
30%
25%
25% 21%
20% 17%
15%
10% 7%
5%
0%
Cutting cost Introduction of Investment Reducing prices Merger with
new product plans on hold other

Interpretation

30% respondents replied that their organization using cutting cost strategy in response to
the sales level but 25% replied that their organization using reducing prices strategy in
response to the sales level.

[51]
Q9. Please tell me about changing use of the marketing tool kit?

Internet/Electronic media 30%

Market Research 25%

Direct mail 14%

Trade shows 10%

Telemarketing 21%

Changing use of the marketing tool kit

Changing use of the marketing tool kit

35% 30%
30% 25%
25% 21%
20% 14%
15% 10%
10%
5%
0%
Direct mail

Trade shows

Telemarketing
Internet/Electronic

Market Research
media

[52]
ANALYSIS AND FINDING

[53]
 FINDINGS

1. The above mentioned graph shows that 40% respondents are working in the
organization from 2 years to less than 4 years and 15% respondents working in the
organization more than 6 years.

2. The above mentioned graph shows that according to the 23% respondents cost
advantage is the most competitive advantage for Coca Cola and according to the 23%
respondent’s 17% respondents service quality is the most competitive advantage for
Coca Cola.

a. Product Quality: They can offer higher product quality because they have an
established base with an office, workshop, or storage facility in the area where
their customers are located.

b. Flexibility: They are open for business. The company requires no or short
setup times. They are more readily available to provide required services.
They can react quickly to changing customer needs and requests.

c. Cost Advantages: Transportation costs incurred in providing a service or

delivering goods are usually lower than for them. In addition, if customers
factored potential time savings (travel time, shipping time) into their
calculations, they may realize that they can benefit from significant cost
advantages by sourcing locally.

3. The above mentioned graph shows that according to the 22% respondents scarcity of
resources is the most competitive disadvantage for Coca Cola but according to the 9%
respondent’s production process is the most competitive disadvantage for Coca Cola.

4. According to 35% respondents, the current year sales level as compared to previous
five year is average but 45% replied that the current year sales level as compared to
previous five is below average.

5. 39% respondents describe the present economic environment in so far as recession but
38% respondents describe the present economic environment in so far as growth.

6. According to 30% respondents, branding & differentiation changes in their marketing

strategies but 20% respondents replied that raising prices changes in their marketing
strategies.

[54]
7. 30% respondents replied that their organization using cutting cost strategy in response
to the sales level but 25% replied that their organization using reducing prices strategy
in response to the sales level.

[55]
LIMITATIONS

[56]
 LIMITATIONS OF THE RESEARCH WORK

Considering the fact that “Nothing is prefect in the world, every individual is bound to
make mistake at some points, and it is genuine”.

 Limited knowledge of the researcher in the field of research may lead to

interpretation errors.

 The respondents may be biased or influenced by another factor.

 A busy schedule of dealers/ retailers also makes the collection of information a very

difficult one.

 The project is purely based on observation & verbal meetings and may be influenced

by unprecedented factors.

 Non-co-operative behaviour of respondent was a big problem in this survey..

 The research was based on primary collection of data through voice interview and

observation so there may be chances of human error.

 The research was depending on the information provided by the respondents

(retailers). It may insufficient.

 As associated with project, time and money were the major limitations with project.

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RECOMMENDATION

AND

CONCLUSION

[58]
 RECOMMENDATION

Coke is a mature product, so your task is to penetration into new markets. Don't mean to
bore you, but here's part of what I published on Coca Cola's challenges in India - where
Coke has been unable to take its share. My strategy recommendations for the new
president of Coca-Cola’s Indian subsidiary are constrained by limited knowledge. And,
to say that American market leaders pursue a differentiation strategy is fine, but in
developing a winning strategy in India, the same rules may apply. The main objective is
to establish the brand name. The best strategy places product of uniform quality in every
corner of India. Conditionally, Coca-Cola must accept the costs and logistical challenges
of distributing to every conceivable market. Selling costs may be higher in remote
regions, but the quality product must be available, and it must be reasonably priced.
Additionally, Coke can look to the competition for clues as to what products they should
phase out, so that they can utilize plant capacities for strong sellers and new innovative
offerings. That said, I think that the best differentiation strategy is brand recognition,
which requires promotion; therefore, the sponsorship of local, regional, and national
events should continue. Similarly, the sponsorship of sports teams is effective in Latin
America, and product endorsement by well-known athletes is yet another way to
strengthen the connection between the product and the consumer. In conclusion, the
Indian economy presents the best possible scenario for producers given that the people
enjoy increasing personal wealth. Therefore, the best strategy employs a promotional
strategy that leads people to believe that Coke products are simply better.

[59]
 CONCLUSION

Coca-Cola has launched a new application to promote its Sprite band, showing that
mobile marketing has become an integral part of its marketing strategy. A marketing
spokesperson for Coca-Cola recently said that smart marketers are looking at all of the
different ways that they can communicate with consumers including traditional, in-store,
out-of-home as well as online and mobile methods. Savvy marketers are tapping into all
of the new and old resources available. Since Sprite is focused on youth, Coca-Cola is
targeting mobile audiences in particular and this is the first large-scale program of this
kind that the soft drink giant has launched in the India.

The marketing campaign works by having consumers shake, tilt or tap their iPhone
screen to create a combination rhythm and melody track that can be uploaded to the web
for sharing and listening. Users can unlock more beats by twisting off the cap off of a
Sprite bottle and then texting in a keyword followed by the code under the cap. Sprite
will then give the user a code that can be used to unlock even more beats. This move by
Coca-Cola shows that mobile marketing is the next biggest thing for large, mainstream
companies are taking advantage of. Mobile marketing has been quite popular and
common all across Asia and Europe and it slowly but surely gaining a presence in the
Indian markets. For example a coca cola brand may be said to reduce hangover after a
drinking spree and this would really increase the consumption level of the product, this
message should be used to market the product and the facts being provided about the
product should be those aimed at solving problems faced by the masses.

Market segmentation has not been of much emphasis in the company, the company
should subdivide its market and provide products that meet special needs of its products,
this is already evident in the fast food market whereby purchases can be made online and
delivery is made within a few hours, for this reason therefore the company should try to
make products that are to be consumed by specific groups and also that the price level
should differ depending on the market segment. Advertising should also be accompanied
by promotional activities that are offered by the company, in most cases advertisement
only inform the consumers but promotions such as periodical price cuts of the product
are not included in this adverts, example buy one coke and get one free are not evident in
the companies strategy, this would be a means in which to share with the customer the
profits made by the company. This is possible because in most cases the advertising
costs are even higher than the production costs, most of the funds are used up in
advertising. Other forms of advertising should include extensive internet advertising, due
[60]
to the changes in technology many companies have decided to advertise online but coca
cola tends to lag behind in this strategy, there should also be the extent to which one can
purchase and order products online and delivery made at home like in the fast food
industry, for this reason therefore there is need to change the mode of advertising and
adopt with the current change in the world today.

Having considered the above discussed likely solutions to improve the current
advertisement strategy there is need for the company to involve the card slacking
technique in their advertisement, this should involve providing facts to the consumer
regarding the advantages gained from drinking the products, this benefits should not
only be monetary gains through discounts but also gains in terms of health and also to
solve certain problems, when consumers are provided with this information then the ales
levels will definitely rise and this will create a niche market.

[61]
ANNEXURE

[62]
 BIBLIOGRAPHY

 Andrew Collins,” Competitive Export Marketing Dynamic Strategies for Winning and
Keeping Customers”, McGraw-Hill,1992
 Doctor, Vikram. “Competing on price is the new name of the game,” Economic
Times, 7 February 2001.

 Andrew Wernick (1991) Promotional Culture: Advertising, Ideology and Symbolic

Expression, McGraw Hill publishers, New York

 Carroll Glynn (2004) Public Opinion, McGraw Hill publishers, New York

 Otto Kleppner (1990) Advertising Procedure, Prentice Hall publishers, New York

WEBSITES:

 http://www.articlesbase.com/management-articles/coca-cola-marketing-2124317.html
 http://www.scribd.com/doc/10552013/Coca-Cola-Marketing-Strategies
 http://www.coca-colaindia.com/
 http://www.thecoca-colacompany.com/citizenship/

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