DISSERTATION PROJECT REPORT

( Project Semester VI Jan-June 2023)

(“COCA-COLA COMPANY”)\

Submitted by

NANCY JAIN

20BBAN067

Under the guidance of

Faculty Dissertation guide

Miss Anushree Yadav

Assistant Professor

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 Faculty of Management

JECRC UNIVERSITY, JAIPUR

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 DECLARATION

I hereby declare that the project work entitled “coca-cola company”

Is an aunthentic record of my own work carried out of “

As requirements for the award of degree of B.B.A, JECRC UNIVERSITY,

Under the guidance of “Miss anushree yadav”,during Jan to June 2023.

Signature student-Nancy jain

Name of the student-Nancy jain

Student ID-20BBAN067

Date-1-June-2023

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 PFREFACE

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 8 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. Coca-Cola was first introduced by John Syth
Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia. The project topic
basically talks about the Relevance of different marketing strategies and RED on
the sale of Coca cola and understanding the retailer’s psyche. The present report is
an amalgamation of our thoughts and our efforts to study the present marketing
scenario. Advanced statistical technology for measurement, analysis and tests
have been used in the preparation of the project. The findings of the activity have
been drawn out in form of graphs and suggestions have been offered there from.

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 ACKNOWLEDGEMENT

It is indeed a moment of immense gratification for me to express my deepest

gratitude to the faculty of “JECRC University for providing me with an
opportunity to undertake my summer internship program from a world recognized
beverage company – HINDUSTAN COCA COLA BEVERAGES PVT. LTD. At
the same time, I would also like to thank the company’s management for granting
me the permission of being the part of their esteem organization and enhance my
knowledge by doing summer training project under their guidance. The learning
during the project was immense & invaluable. It was a challenging &
enlightening association with the company, which helped me to understand the
reality of work place, made me manage the personal life with work and also
helped me to be more prepared for other industry. special thanks to Miss
Anushree yadav under the faculty guide.

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 “TABLE OF CONTENT”

SNO. Component Page number

1 Preface 3
2 Acknowlegdement 4
3 Executive summary 11
4 introduction 12
5 Company profile 15
6 Company product 18
7 Market mix 20
8 Methodology 45
9 Data analysis 48
10 conclusion 49
11 recomendations 50
12 bibliography 51

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 EXECUTIVE SUMMARY

This report has beenm prepared for specific purpose in mind.it outlines the
historyand current scenario of the coca-cola company globally and locally. The
first part of the study takes us through the prsent 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 deatiled view of tge tasks,which
have been undertaken to analyze the market of coca-cola i.e. we have performed
competitive, PESTLE and SWOT analyis of coca-cola company and PESTLE and
swot analysis of coca-cola india in order to identify areas of potential growth for
coca-cola. The main objective of this project report is to analyze and study in
efficient waythe current position of Coca- Cola Company. The study also aims to
perform Market Analysis of Coca-Cola Company & find out different factors
effectingthe growth of Coca-Cola. Another objective of the study was to
performCompetitive analysis between Coca-Cola and its competitors. Apart from
theseobjectives this study is also conducted to understand the Customer
preferencestowards various Coca-Cola products.

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 INTRODUCTION

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. 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 Coca-Cola system has
successfully applied a simple formula on a global scale: “Provide a moment of
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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. However Coca-Cola is not the sort of company to live in its past
glories instead it looks to the future as a challenge and constantly seeks new
markets and ways of increasing its market share in areas where it currently
has a strong presence. It is the world‟s largest producer and distributer of
syrups and concentrates for soft drinks. As we all know, the Coca is today‟s
one of the biggest corporation that offers different refreshment in form of a
soft-drink. But aside from their historical success, the Coca Cola Company
is still a typical business that is affected and at the same time affecting

the different type of communities. Coca-Cola has sold more than one billion

servings every day. More than 10,450 beverages are consumed every
second. The company achieved earnings of $4,347,000,000 in 2003. It is

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present on all seven continents and is recognized by 94% of the world
population. How did Coca-Cola grow from its humble roots as a home-
brewed Georgia-based patent medicine to be the international soft drink
powerhouse that it is today? Coca-Cola used numerous technologies to
achieve its rise to the top of the soft drink industry, defining new
technologies and establishing paradigms that popped the status quo like a
cap from a soda bottle. Through technology, Coca-Cola perfected Coke as
a beverage and spread it throughout the world. Even today, the US soft
drink industry is organized on this principle. "The Coca-Cola Company" is
now the largest soft drink company in the world. Every year 800,000,000

servings of just "Coca-Cola" are sold in the U.S alone. Distribution is

the spine of any FMCG company. The main function of a retailer is to bridge the

gap between the supplier and the customer. The central focus of distribution is

toincrease the efficiency of time, place, and delivery utility. Therefore, the

company tries to keep theoutlets satisfied by offering discounts and some other
incentive schemes from time to time.

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

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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 differentmedia, 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.

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 COMPANY PROFILE

Coca cola was invented on 8 th may 1886 by DR JOHN STYTH Pemberton in

Jacob’s pharmacy in Atlanta Georgia. The name coca cola was suggested by
Pemberton’s book- keeper, frank Robinson. He penned the name coca cola in
the following script that is famous today.

Coca cola was first sold at the soda fountain in

Jacob’s pharmacy in Atlanta. During the first year,
sale of coca cola average nine drink a day, adding up
to total sale for that year of $50. Today, products of
Coca Cola Company are consumed at the rate of more than
one billion drink per day in over 200 countries.
Coca cola first arrived in Great Britain in 1900 when
chars Candler, son of Asa Candler, the owner of coca
cola Company, bought a jug of syrup with him in a visit
of London. It was first sold in grate Britten on 31st
1900 and later went on regular sales through soda
fountain outlet, which include shelf fridge and the
London coliseum.

In 1999 the coca cola company parched the soft drink

brand of Cadbury Schweppes plc in various country,
including grate Britten. This resulted in the extension
of our existing product range which include coca cola,
diet coke, coca cola cherry, Fanta, sprite lilt and
five alive to include the Schweppes, range, dr pepper,
oasis, kia-ora and Malvern water.
The coca cola brand will always be the number one focus
for CCGB but product innovation plays a vital role in
the company, s business and future. In October 2001 the
isotonic sport drink powerade was launched, followed by
the introduction of other brand including with diet
coke, lemon, coca cola vanilla and diet coke vanilla.
In 2004, fanta apple splash, our first low sugar brand
was launched.
In 2005, we launched our fifth diet coke variant, diet
coke with lime and relaunched our range of diet fruit
carbonates (fanta, sprite lilt and dr pepper) as the z
for zero added sugar range. We also introduced a new
fanta choice- fanta summer fruits, another new
development of 2005 was the reformation of oasis to
reduced the sugar contact. These developments meant
that by the end of 2005, over 35% of our sales by
volume were either low in sugar or diet\light drinks.
Company have also launched sport water-powerade aqua

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+, anew sport water drink with natural fruit flavors
that is free from artificial sweetness and
preservatives.
2005 also saw the launch of brand new choice in the
form of Nestea-an ice tea drink, plus a range of juice
drink under the minute maid brand.
Established In 1886 , Coca-Cola is the world most
ubiquitous brand. The company and its subsidiaries are
present in over 200 countries employing over 49,000
individuals and generating revenues to the tune of US $
billion. The Coca-Cola company markets fourth of the
world’s top five soft drink brand.
Its beverage product encompass nearly 400 brands,
including non-carbonated beverages such as water ,
juice, sports drinks, teas and coffees. The companie’s
net income registered a CAGR of 7.2 per cent over 10-
year period.
Till date, Coca-Cola has invested over US $ 1 billion
India and employs over 50,000 people.The Coca-Cola
system in India comprises 25 wholly owned bottling
operations and another 35 Franchises- owned bottling
operation. A network of 7-contract packers also
manufactures a range of product for the company.
After a 16-years absence, Coca-Cola returned to India
in 1993.The Company’s presence in India was cemented in
November that year in a deal that gave Coca-Cola
ownership of the nation’s top soft-drink brands and
bottling network.
Coca-Cola India has made significant investment to
build and continually improve its business in India,
including new production facilities, wastewater
treatment plants, and distribution systems and
marketing equipment.
During the past decade, the Coca-Cola system has
invested more than US$1 billion in India.
Coca-Cola is one of the country’s top international
investors.
In 2003 ,coca-cola india pledged to invest a further
US$100 million in its operations.
Coca-Cola business system directly employs
approximately 6,000 local people in india.
In india, we indirectly create employment for more than
1,25,000 people in related industries through our vast
procurement , supply and distribution system.
Virtually all the goal and services required and market
Coca-Cola locally are made in india.

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The Coca-Cola system in india comprises 27 wholly
owned company – owned bottling operations and another
17 franchisee- owned bottling operations.
A network of 29 contract – packers also manufactures a
range of product for the company.
The complexity of the india market is reflected in the
distribution fleet, which includes 10-tonne trucks,
open –bay three –wheelers that can navigate the narrow alleyways of india cities,
and trademarked tricycles
and pushcarts.

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 Coca-Cola mission , vision and values

These are the declaration of company overall and goals

and the values that are guided by as a company as
individuals.

the Coca-Cola company

mission
Coca-Cola company Mission is :
 To refresh the world in mind , body and spirit
 To inspire moments of optimism – through our
brands and actions.  To create value and make a difference –
everywhere we engage
The Coca-Cola company vision
To achieve mission , Company has developed a set of
goals, which company will work with there bottlers to
deliver:
 Profit: Maximization return to shareowners
while being mindful of our overall
responsibilities.
 People : Being a great place to work where
people are inspired to the best they can be.
 Portfolio: Bringing to the world a portfolio
of beverage brands that anticipate and
satisfied people’s desires and needs.
 Partners: Nurturing a winning network of
partners and building mutual loyalty.
 Planet: Being a responsible global citizen
that makes a difference.

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 the Coca-Cola company value

Company’s shared values that are guided by are:

 Leadership
 Passion
 Integrity
 Accountability
 Collaboration
 Innovation
 Quality

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 COMPANY PRODUCT

The world’s favorite soft-drink. The world’s most valuable

brand. The most recognizable word across the world after
OK.
 Coca-Cola -Coca-Cola has a truly remarkable heritage.
From a humble beginning in 1886, it is now the flagship
brand of the largest manufacturer, marketer and
distributor of non- alcoholic beverages in the world. In
India, Coca-Cola was the leading soft drink till 1977 when
govt. policies necessitated its departure. Coca-Cola made
its return to the country in 1993 and made significant
investments to ensure that the beverage is available to
more and more people, even in the remote and inaccessible
parts of the nation. Coca-Cola returned to India in 1993
and over the past ten years has captured the imagination
of the nation, building strong associations with cricket,
the thriving cinema industry, music etc. Coca-Cola has
been very strongly associated with cricket, sponsoring the
World Cup in 1996 and various other tournaments, including
the Coca-Cola Cup in Sharjah in the late nineties. Coca-
Cola’s advertising campaigns “Jo Chaho Ho Jaye” and “Life
Ho To Aisi” were very popular and had entered the youth’s
vocabulary. In 2002, Coca-Cola launched the campaign
“Thanda Matlab Coca-Cola” which sky-rocketed the brand to
make it India’s favorite soft-drink brand. In 2003, Coke
was available for just Rs.5 across the country and this
pricing initiative together with improved distribution
ensured that all brands in the portfolio grew leaps and
bounds. Coca-Cola had signed on various celebrities
including movie stars such as Karishma Kapoor, cricketers
such as Srinath, Sourav Ganguly, southern celebrities Vijay in
the past and today, its brand ambassadors are Aamir Khan,
Aishwarya Rai, Vivek Oberoi and cricketer Virendra Sehwag.

 THUMS UP: Strong cola Taste, Exciting Personality

Thums Up is a leading carbonated soft drink and most trusted
brand in India. Originally introduced in 1977, Thums Up was
acquired by The Coca-Cola Company in 1993. Thums Up is known for
its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the man
from the boys.

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GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.1

 FANTA:

Internationally, Fanta – The orange drink of The Coca-Cola

Company, is seen as one of the favorite drinks since 1940’s.
Fanta entered the Indian market in the year 1993. Over the years
Fanta has occupied a strong market place and is identified as
“The Fun Catalyst”. Perceived as a fun youth brand, Fanta stands
for its vibrant color, tempting taste and tingling bubbles that
not just uplifts feelings but also helps free spirit thus
encouraging one to indulge in the moment. This positive imagery
is associated with happy, cheerful and special times with
friends.

GLASS PET CAN FOUNTAIN

200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
2.25L, 500ml, 100ml

Table – 1.2

 LIMCA:
Lime n’ Lemoni Limca, the drink that can cast a tangy refreshing
spell on anyone, anywhere. Born in 1971, Limca has been the
original thirst choice, of millions of consumers for over 3
decades. The brand has been displaying healthy volume growths
year on year and Limca continues to be the leading flavours soft
drink in the country. The sharp fizz and lemoni bite combined
with the single minded positioning of the brand as the ultimate
refresher has continuously strengthened the brand franchise.
Limca energizes refreshes and transforms. Dive into the zingy
refreshment of Limca and walk away a new person…

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GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES
500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.3

 SPRITE:
Worldwide Sprite is ranked as the No.4 soft drink and sold in more
than 190 countries. In India, Sprite was launched in year 1999 and
today it has grown to be one of the fastest growing soft drinks,
leading the clear lime category. Today Sprite is perceived as a
youth icon. Why?
With a strong appeal to the youth, Sprite has stood for a
straight forward and honest attitude. It’s clear crisp refresh
hinge taste encourages the today’s youth to trust their
instincts, influence them to be true to who they are and to obey
their thirst.

RGB PET CAN FOUNTAIN

200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES
1250ml, 1500ml,
2000ml, 2250ml

Table – 1.4

 MAAZA:
Maaza was launched in 1976. Here was a drink that offered the
same real taste of fruit juices and was available throughout the
year. In 1993, Maaza was acquired by Coca-Cola India. Maaza
currently dominates the fruit drink category. Over the years,
brand Maaza has become synonymous with Mango. This has been the
result of such successful campaigns like “Taaza Mango, Maaza
Mango” and “Botel Mein Aam, Maaza hai Naam”. Consumers regard
Maaza as wholesome, natural, fun drink which delivers the real
experience of fruit. The current advertising of Maaza positions
is as an enabler of fun friendship moments between moms and kids
as moms trust the brand and the kids love its taste. The
campaign builds on the existing equity of the brand and delivers
a relevant emotional benefit to the moms rightly captured in the
tagline “Yaari Dosti Taaza Maaza”.

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RGB PET POCKET MAAZA
200ml, 250ml 250ml, 600ml, 1.2L 200ml

Table – 1.5

 MINUTE MAID PULPY ORANGE(MMPO):

Minute maid pupply orange cold drink no
gas only based on orange juice. It is a
non-aerated soft drink and market
competitor of Tropicana Twister.

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.

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 MARKETING MIX OF COCA-COLA INDIA

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
were
Coca-Cola identified major opportunities. In 2002, Packaged drinking water in
India was a
Rs 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
line
“Bhoond Bhoond
Mein
Vishwas”
(Trust in each drop of
water).
In early 1999, the parent company acquired Cadbury Schweppes. As a result 12
more

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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

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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.

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

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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.

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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 asked CCI to take corrective action.

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 PORTER’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 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

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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 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.

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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.
Page 29

28 | P a g e
“Project Report on Coca-Cola Company and study of
customer preference for Coca-Cola brands with reference to Coca-
Cola India”

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

29 | P a g e
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 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.

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BARGANING POWERS 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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 BARGNING 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 organizations for making strategies and to know the
EXTERNAL
environment in which the organization is working and is going to work in the
future.
Coca-Cola beverage, which is the leading manufacturer and distributor of non-
alcoholic

32 | P a g e
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 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 labors, 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 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 include tax policies and accounting
standards.
The accounting standards used by the company changes from time to time which
have
a

33 | P a g e
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 accept and have changes in hand for the same.

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 increase. 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

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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 involve a major impact in the behavior of the company
during
various economic
situations.

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 must 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

35 | P a g e
are
the most important factors to consider. Each 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
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 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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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 them 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, various environment related acts and regulations, the
production, distribution, sale and advertising of all the products is 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

37 | P a g e
product accordingly. Usage of renewable plastic in the PET bottles is followed by
the company strictly.

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-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

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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

39 | P a g e
“Project Report on Coca-Cola Company and study of
customer preference for Coca-Cola brands with reference to Coca-
Cola India”
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

40 | P a g e
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 with the company's flavors, of Vitamin Water. Claims say that the 33 grams
of sugar
are
more harmful than the vitamins and other additives are
helpful.

41 | P a g e
 RESEARCH METHODOLOGY

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
outdifferent factors effecting the growth of Coca-Cola.

This research involved a study , which was a descriptive as well expolrative in

nature it basically aims at gathering a data aboutb how the coca-cola scheme
playing in mind of shopkeepers aand consumer.

There are two types of data-

1. Primary data

2. secondary data.

42 | P a g e
1.Primary data- The primary data has been collected simultaneously along with
secondary data meeting the established objectives to provide the solution for the
problem identified this study.

The methods that have been used to collect the primary data

are:-

Questionnaire

Personal

Interview.

RESEARCH 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:-

Personal

interview.

Tables

Percentages

Pie-

charts.

Bar-

charts.

Column

charts.

43 | P a g e
 DATA ANALYSIS

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).

SOFT DRINK CONSUMPTION & EXPENDITURE:

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 drink every day.

PURCHASING PORTAL PREFERENCE:

From the above data, we have ascertained that preferred portal for purchase of
Coca- Colaproducts 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

44 | P a g e
from Supermarkets and Vendor machines. 23% prefer to purchase from
Pubs,Restaurants and Multiplexes.

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. 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.

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.

OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS EXPECTED BY

CONSUMERS :

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.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.

45 | P a g e
BRANDING & PRICING :

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 and only 38% supported Pepsi products. we infer that about 62% of the
respondent considers the pricing of Coca-Cola much more reliable than that of
Pepsi. About 38% respondents think that Pepsi have better pricing than that of
Coca- Cola.

QUALITY & TASTE :

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.

46 | P a g e
 CONCLUSION

Though there were certain limitations in the study that was conducted. The sample
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 its TASTE , BRAND
NAME , INNOVATIVENESS and AVAILABILIT Y, thus it should focus on good
taste so that it can capture the major part 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 himthe
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.

47 | P a g e
 RECOMMENDATIONS

. Decrees the price of kinley water - Company have to reform the pricing
strategies, specially the price of kinley water because there are lot of

local water in the market at cheap rate, so retailer are not agree to keep the kinley
water with them. Basically there is a good demand of kinley price of water but
company can increases the sale of kinley water.

. Scheme should be necessary- basically everybody know coca cola is the leading
brand in the beverage industry, but coca cola’s nearest brand PepsiCo is

giving two bottles scheme. If we will allow such type of scheme than there is no
chance for PepsiCo to competitive with coca cola. So company should give some
scheme which is helpful for sustain company’s growth forever.

. Package of market developer should be increase –package of market developer

should be increase, as we know a satisfied can only become a productive worker.
If market developer will be satisfied than they will try to improve their
performance and effectiveness. Market developer is the pillar of coca cola.

. Increases the product portfolio- company should increase the product portfolio.
Company should increase the product in juice segmentation like PepsiCo’s
Tropicana. Company should start to produced other juice like-guava, apple,
grapes, pomegranate, pine apple………etc.

48 | P a g e
. Diversification of business-diversification of business is very important.
Company should try to produce biscuit like parley agro and other FMCG

product so company can archive his vision very effectively.

. More Attention on demandable product- company should be more try to

produced demandable like- mazza, sprite, and thumps up. So company can

meet demand with supply. In this way company can achieve his vision very
effectively.

. Using the short term sale promotion tools with less demandable product-
company should use the short term promotion tools like- schemes, discount….etc.
so company increase the sale of less demandable product like- mmpo, fanta
apple……..etc. company should need to give attention on such type of product.

. Less economical expense should be on auditing company should decrees the

expanse on auditing by ac nelson. Whatever expanse company is doing on the
auditing per month. If company decrees this expanse by auditing after every two
month and by this money company can increase extra sale force or package of
market developer so they will do the work very effectively or company can
utilization of this money on new product development.

. Company should provided training to the outlier related to RED- Company

should provided training to the outlier related to audit or red at the time of their
enrollment. At that time every outlier is greedy so they can help of company in
red score. Company should tell them, channel and category of their outlet. What is
the minimum requirement of visibility, availability, activation? So they can help to
achieve their vision.

. Need of more attention on fed dealer area-

company should give more attention on fed dealer

area because it is the area where company cannot

49 | P a g e
distribute his product directly . So company should

fulfill their requirement because they are the

medium to meet with company’s vision.

.Company should also produced unseasonal product-company should produced

also unseasonal product like- snacks, tea , coffee…..etc. if company will produced
unseasonal than it will be more effective to the organization . in India there is no
demand of cold drink in winter season so company should give attention to
unseasonal product.

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BIBLIOGRAPHY 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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