Declaration

I take this opportunity to express my profound gratitude and deep regards to my guide
(MRS. SUGANDH RAWAL) for her exemplary guidance, monitoring and constant
encouragement throughout the course of this project. The blessing, help and guidance
given by (him) time to time shall carry me a long way in the journey of life on which I
am about to embark.

Last but not least, my sincere thanks to my parents and friends for their wholehearted
support and encouragement.

I also hereby declare that the project work entitled “SOFT DRINK INDUSTRY”
under the guidance of “MRS. SUGANDH RAWAL” is my original work and it has
not been submitted earlier in any other university or institution.

(ASHISH KUMAR)
BCOM(HONS)-(B)

1
 Certificate
This is to certify that the project titled “(SOFT DRINK INDUSTRY)” is
an academic work done by ASHISH KUMAR submitted in the partial
fulfillment of the requirements for the award of degree of Bachelor of
Commerce (Hons.)at Delhi School of Professional Studies and Research,
New Delhi under my guidance and direction.

ASHISH KUMAR has given an undertaking that the information

presented in the project has not been submitted earlier.

(Signature of Faculty)
(MRS. SUGANDH RAWAL)

DSPSR

2
 CONTENTS
S No Topic Page No
1.
Declaration 2
2.
Certificate 3
3.
Chapter I: Introduction 5-20
4.
Chapter II: Review of Literature 21

5.
Chapter III: Research Methodology 22-36
6.
Chapter IV: Data Reduction, Presentation & Analysis 37-43
7.

8.
Chapter V: Data Interpretation 44
9.
Chapter VI: Summary & Conclusions 45
10.
References/ Bibliography 46
11.
-Questionnaire 47-48

3
 INTRODUCTION OF SOFT DRINK INDUSTRY:

This project is focused on studying of Indian soft drink industry in the 1990’s.
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 caromel colored syrup, which is now the chief
ingredient of the world’s favorite 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.

The segment Soft Drinks covers varieties of prepared water-based beverages to which
flavoring additives (sugar or sweeteners, aromas etc.) have been added. These include
cola drinks and lemonades, but also energy drinks, fruit nectars and soft drinks with
fruit juice content, as well as value-added or flavored water..Coffee and tea-based
drinks are not included.

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.
Inida 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

4
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 Neighbors Pakistan &
Bangladesh, where it is four times as much..

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.
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 ecognising 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.CSBI 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 Apella.
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%.

5
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.

6
 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.
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

7
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

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

Focus on the Market

 Focus on needs of our consumers, customers and franchise partners

 Get out into the market and listen, observe and learn

 Possess a world view

8
  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

Be the Brand

 Inspire creativity, passion, optimism and fun

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
Mangola 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 trycoon 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

9
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, Parle'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 pre-
liberalization 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 crore 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,. Goenka, 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.

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.

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.

10
 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
Price

11
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.

12
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.

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.

13
 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 Thums 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 Thums 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, Thums Up, Fanta, Gold
Spot, Maaza, Citra, Sprite, Bisleri Club Soda and Diet Coke.

14
All India Market Share ‘ 98

Overall 48.3%

Coca-Cola 10.8%

Thums up 16%

Fanta 5%

Limca 10%

Gold Spot 1.5%

Others 5%

15
CHAPTER-2 REVIEW OF LITERATURE

1. “Fruits drinks: HOW HEALTHY AND SAFE” discussed that fruit drinks
are popularly used in most urban households today market are flooded with
large variety of juices eg: mango apple guava etc. the main reason for increased
consumption is changing lifestyle & rising level of health consciousness among
consumers and parents

2. Studied the coke and pepsi’s rural drive to push sales of soft drink giants coca-
cola & pepsi have signed on thousands of new retailers in a drive into rural India
that has pushed up sales steeply.

3. “Consumers in health drink” discussed that consumer behavior is divided into

three sub categories, consumption behavior, purchase behavior and attitude
perception. The consumer behavior differ with the age and the life style. For
kids health drink is a supplement with added calcium, minerals and vitamins.

4. “Market news service : fruit juices report” in his studies discussed that the fruit
juices market is presently relatively quiet, provide3d one ignores the continued
collapse in the price of FCOJ.

16
 CHAPTER-3 RESEARCH OBJECTIVES &
METHODOLOGY

RESEARCH OBJECTIVE
1. To study the marketing strategies adopted by soft drinks.
2. To study the advertising effectiveness soft drinks on customer
3. To analyze the awareness of consumer regarding fruit juice and soft drinks.
4. To help the company for further changes in the quality, pricing, and policies.

Research design
The Research available is descriptive so as to describe the complete qualities of juices
available in market.
On the basis of fundamental objectives of the research we can easily classify
research into-

 Conclusive research

Conclusive research is designed to assist the decision maker in determining evaluating

and selecting the best course of action to take in a given situation.
This research design used in this project is descriptive design. This study helps to
describe something –for example the characteristic of users of a given product.

Sampling Technique
The sampling technique which has been used in this research is Convenience
sampling technique. It is used in exploratory research where the researcher is
interested in getting an inexpensive approximation of the truth.

Sample size: 50
For a study, a sample size of 50 has been taken into consideration.

Sample Area: New Delhi

17
Sources of Data collection
To do a research always we use two sources of data collection. Primary and secondry

Primary Source:
It is the source which collects the primary data through Questionnaire and record the
raw data for further analysis, Primary source is used by the face-to-face survey with
the customers of the company.

Secondary Source:
Secondary source is the internet, magazines, and old data files of the research.

Sampling Technique
The sampling technique which has been used in this research is simple Random
sampling. This has been used in order to simplify the process of sample collection and
to use our own wisdom and parameters in relation to selection of sample.

Sample size: 50

Sample Area: New Delhi

18
The product range of SOFT DRINK INDUSTRY includes:

 Coca-Cola,
 Coca-Cola classic,
 MAAZA
 diet Coke
 BANTA
 SODA
 THUMS UP
 PEPSI
 Fanta brand soft drinks,
 Sprite,
 LIMCA
 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 countires. 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-

19
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 liter bottles, all
helping increase consumption.

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

20
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-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.

21
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

 Vending

22
 PROMOTION STRATEGIES

GETTING SHELVES

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

EYE CATCHING POSITION

Salesman of the Coca Cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.

SALE PROMOTION

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

UTC SCHEME

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

1. Direct selling

2. Indirect selling

Direct Selling

23
In direct selling they supply their products in shops by using their own transports.
They have almost 450 vehicles to supply their bottles. In this type of selling company
have more profit margin.

Indirect Selling

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

FACILITATING THE PRODUCT BY INFRASTRUCTURE

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

 Vizi cooler
 Freezers
 Display racks
 Free empty bottles and shells for bottles
ADVERTISEMENT

 Print media
 Pos material
 Tv commercial
 Billboards and holdings
PRINT MEDIA

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

POS Material

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

TV COMMERCIALS

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.

24
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.

COMPARING THE MARKETING STRATEGIES OF COKE

WITH PEPSI

Coca-Cola India and Pepsi India are locked in a bitter battle for market share.
So far Pepsi has won, outselling Coke 27.1% to 10.8% (All India Market Share) But
Coke's new strategy adopted in India which gives Thums Up the local brand it
acquired in 1993-94 from Parle exports - top marketing priority which would hurt
Pepsi in the long run.

All India Market Shares

(1998)

CADBURY
COCA - COLA PEPSI-COLA SCHWEPPES
Overall 48.3% Overall 45.2% Overall 3.2%
 Thums ups 16%  Pepsi 27.1%  All brands 3.2%
 Coke 10.8%  Mirinda 7.3% (Crush, Canada, Dry,
 Fanta 5%  Others 10.8% Campa-Cola, Campa
 Limca 10% (7 Up. Mangola, Slice, Orange, Campa Lemon)
 Gold Spot 1.5% Duke’s Soda
 Others 5% and Lemonade)
(Bisleri Club Soda,
Citra, Maaza)

25
STRATEGIES FOR GAINING MARKET SHARE

Strategy When Use How apply in Market Cost-Implications

Place

1. Price To gain share in a A. Set general market  Will lower gross

product line (a) where price level below margin by decrease-
there is room for average (“catch share sing spread between
growth : (b) in generally strategy) cost and price for a
launching a
new B. Lower prices at period of time.
product, preferably in specific target  Will lower cost as
a growth market. customer accounts cumulative volume
where reduced prices increases and costs
will capture high move down the
volume accounts and experience curve.
where competition in
vulnerable on a price
basis : lower prices
enough to keep the
business

C. Lower Prices
against specific
competitions who will
not or cannot rect
effectively.

2. New When a new product A. Develop and launch

Product need (cost or the new product
performance) can be (Generally )
uncovered and a new B. T
product will (a)
arget specific
displace existing
customers and market
products on a cost or
segments where the
performance basis. or

26
 (b) expand the market need for the product is
for a class of product strongest and
by tapping previously competition most
unsatisfied demand. vulnerable, and
immediate large gains
in share can be
obtained.

3. Service To gain share for A. Improve service  Cost of adding

specified product lines generally beyond capacity and/or
when competitive competitive levels by bolstering service
service levels do meet increasing capacity for systems.
customer specified product lines.
 Cost of expanding
requirements. B. Target specific the distribution
accounts where system, including
improved service will additional inventories
gain share and the required.
need for superior
service is high

C. Offer additional
services required in
general or at specific
customers-
information,
engineering advice,
etc.

D. Expand distribution
system by adding more
distribution points.

4. Quality When a market A. Add salesmen or  Salary and overhead

/strength segment or specific sales representatives to cost of additional
of customers are getting improve call frequency salesman or

27
marketin inadequate sales force above competitive representatives
g coverage (too few levels in target
 Cost of training for
calls/month) or inferior territories or at target
retraining
quality or coverage accounts.
 Cost of incentive
(poor salesmen or B. Sales training
program
insufficient programs to improve
information conveyed existing sales skills,
by salesmen) product knowledge,
and territorial and
customer management
abilities.

C. Sales incentive
program with rewards
based on share
increases at target
customers or in target
market of products.

5. Adver- a) When a market A. Select appropriate  Cost of creative work

tising and segment or specific media to reach target to create campaign.
sales pro- inadequate exposure to customer groups.
 Production and
motion product, service, or B. Set level and
media costs
price benefits frequency of exposure
compared to of target customers
competition (b)
A high enough to create
change in the benefits adequate awareness of
offered is made and benefits and counter
needs to be level of competitive
communicated. efforts.

28
COCA-COLA Vs PEPSI IN INDIA

Coca-Cola controlled the Indian market until 1977, when the Janta Party beat
the Congress party of then Prime Minister Indira Gandhi. To punish Coca-Cola's
Principal bottler, a Congress party stalwart and long live Gandhi supporter, the Janata
government demanded that Coca-Cola transfer in syrup formuale to an Indian
subsidiary. Coca-Cola backed and withdrew from the country. India, now left without
both Coca-Cola and Pepsi, became a protected market. In the meantime, India's two
target soft drink producers have gotten rich and lazy while controlling 80% of the
Indian market. These domestic producers have little incentive to expand their plants
or develop the country's potentially enormous market. Some analyst reason that the
Indian market may be more lucrative that the Chinese market, India has 850 million
potential customers, 150 millions of whom comprise the middle class, with disposable
income to spend on Cars, VCRs and Computers. The Indian middle class is growing
at 10% per year, to obtain the license for India, Pepsi had to export $5 of locally made
products for every $1 of materials it imported, and it had to agree to help the Indian
government to initiate a second agricultural revolution. Pepsi has also had to take an
Indian partners. In the end, all Parties involved seem to come out ahead. Pepsi gain
access to potentially enormous market, Indian bottlers will get to serve a market that
is expanding rapidly because of competition from abroad and will pay lower prices.
Even before the first bottle of Pepsi hit the shelves, local soft drink manufacturer
increased the size of their bottles by 25% without raising costs.

While both Coke and Pepsi slug it out for larger shares of the soft drinks
market, apparently the market itself is growing pretty steadily. Per capita annual
consumption of soft drinks has risen to 3.5 servings today, as against 3 servings in
1993 when Coke was relaunched.

A third competitor Cadbury Schweppes, its Orange drink, Crush was

confined to Delhi and Mumbai and now is planning to expand operations nationwide
by the summer of 1996.

All Figures in % Market Share

Coca Cola 60 65 56

Pepsi 30 33 41

29
Others 10 2 3

Years 1993 1994 1995

The table signifies the fact that Coke's market share has slipped down from
60% in '93' to 56% in '95', while Pepsi, owing to its aggressive marketing strategy

The following is about the region-wise growth pattern of Pepsi and Coke in
the year '98'.

Pepsi had out performed Atlanta-based soft drink major Coca Cola in
the country by emerging the leader in the first quarter growth sweepstakes. Pepsi had
announced a growth of over 27 per cent during the first quarter against 21 per cent
posted by Coca Cola in the first three months of the year. Pepsi grew by 18 per cent
in the same period last year.

30
SWOT ANALYSIS

SWOT Analysis of Soft Drink Industry

Strengths Weaknesses

 Carbonated soft drink growth 10-15%  Weak infrastructure (esp. Cooling)

 Estimated PCC to increase to 6-8  Small retailers, less shelf space

bottles  Heavy excise duty (40%), recently
have come down a little

 Cans have to be imported at high duty

rates.

 Problems of empty bottles

Opportunities Threats

 Low PCC as compared to neighboring  Political risks

countries
 Coke and Pepsi indulging in
 Growing rural market internecine
competition

 Rising disposable income

 Changing consumer trends due to

satellite TV.

31
 CHAPTER-4 DATA REDUCTION,
PRESENTATION AND ANALYSIS

1. Have you ever tried any SOFT DRINK?

35

30

25

20

15

10

0
yes no

Out of the 30 people we surveyed, all of them said they had tried SOFT DRINK
atleast once.

2. Number of males and females tried soft drinks.

20
18
16
14
12
10
8
6
4
2
0
male female

Out of the 30 respondents, there were 18 men & 12 women.

32
 3. What age of people drink more soft drinks

Age Groups

51 & above

36-50 yrs

20-35 yrs

10-19 yrs

below 10 yrs

0 5 10 15

no. of people

As represented in the chart, majority of the respondents were in the age group of 20-
35 years, the least of the lot being 2 kids who were also asked to participate in the
survey.

4. What brand would you say is more popular among the public?

a) Coca-Cola
b) Pepsi
c) Other

33
 Others
7%

Pepsi
37% Coca-Cola
56%

As seen in the chart, out of 30 people, 17 respondents said, in their opinion, Coca-
Cola was more popular while 11 respondents said they preferred Pepsi as a popular
brand.

5. Do you enjoy SOFT DRINK’s advertisements on TV?

I don’t like them

not bad

they are good but nothing special

I really like them

0 2 4 6 8 10 12 14

The chart represents that a majority of people thought the Advertisements were good
enough & they like what they see.

6. How often do you buy the product

34
 everyday

few times in a week

few times in a month

once/few times in a year

never

0 5 10 15

As it can be seen in the figure, it was concluded that majority of the respondents
bought the product quite frequently.

7. Where do you buy SOFT DRINK products the most?

Restaurants

general stores

super markets

0 5 10 15 20

As seen in the above chart, customers usually preferred to buy SOFT DRINK in
restaurants like KFC, Mc Donalds, Sub-Way etc. The second largest option was
General stores stocking SOFT DRINK.

35
 8. Rank of characteristics of soft drink, which induces to buy soft
drink.

OPTIONS MEAN RANK

Taste 70/50=1.4

Price 140/50=2.8

Brand 100/50=2

Quantity 190/50=3.8

Series 1
4

3.5

2.5
Series 1
2

1.5

0.5

0
TASTE PRICE BRAND QUANTITY

It is identified that taste is most preferred by respondents while buying soft drink and
quantity is least preferred while buying soft drink.

36
 9. Number of respondents who faced problem from soft drink

Option No. of respondents Percentage

YES 10 20%

NO 40 80%

TOTAL 50 100%

45

40

35

30

25

20 Series 1
Series 2
15

10

0
YES NO

It is clear that only 20% respondents had faced problem from soft drinks and

80% respondents had not faced any problem from soft drink.

37
 10. Name of brands of fruit juice

OPTIONS No. of responses

Real 33

Tropicana 37

Jumpin 9

Active 12

Frooty 9

Fresh 13

Sales

REAL
TROPICANA
JUMPIN
ACTIVE
FROOTY
FRESH

It is clear that most preferred brand of fruit juice is Tropicana and least preferred
brands are Jumpin and Frooty.

CHAPTER -5
38
 Data Interpretation

 50% of people of Delhi prefer to drink soft drinks and 50% prefer
fruit juice.

 According to survey 60% people of Delhi prefer Tropicana as a

healthy fruit juice.

 90% people like the advertisements.

 It is clear that 50% of people like both fruit juices and soft drinks.

 Most of the people consume soft drink once a week.

 Most of the people like to drink soft drink in the restaurants.

Chapter-6

39
 CONCLUSION

From the survey, it is clear that 50% people of Delhi prefer soft drink and 50% prefer
fruit juice .Tropicana is most preferable brand of fruit juice and coca-cola is most
preferable brand of soft drink, Advertisements have huge impact on buying behaviour
of the people of Delhi .People of Delhi treat fruit juice and soft drink as a aid to put of
thirst,
So we can easily conclude by saying that soft drink and fruit juice are equally
preferable by the people of Delhi.

40
 BIBLIOGRAPHY

Bibliography refers to the sources through which information has been retrieved in
my project development:

Websites:
 www.google.com
 www.coca-Colaindia.com
 www.altavista.com

41
Questionnaire
1. Have you ever tried any soft drink?

a) Yes
b) No

2. Gender

a) Male
b) Female

3. How old are you?

a) Below 10
b) 10-19
c) 20-35
d) 36-50
e) 51 & Above

4. Do you enjoy the product?

a) Yes
b) No
c) It's not bad

5. What brand would you say is more popular among the public?

d) Coca-Cola
e) Pepsi
f) Other

42
6. Do you enjoy soft drinks advertisements on TV?

a) I really like them

b) They good but nothing special
c) Not bad
d) I don't enjoy them

7. Do you think the price for a Tropicana is cheap or expensive?

a) Cheap
b) Slightly over priced
c) Expensive

8. If you were to see the soft drink logo somewhere would you recognize it?

a) Yes
b) No

9. How often do you buy the product?

a) Never
b) Once/few times a year
c) Few times a month
d) Few times a week
e) Everyday

10. Where do you buy soft drinks products the most?

a) Super Markets
b) General stores
c) Restaurants (McDonald's, Subway, KFC etc)

43