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A

Dissertation
On

“A detailed study of consumer attitude


&
behavior towards carbonated drinks”

SUBMITTED TOWARDS FULFILLMENT


OF
POST GRADUATE DIPLOMA
IN
BUSINESS MANAGEMENT
(Session: 2007-2009)

Under the Guidance of: Submitted By:


Mrs. Manisha Mandiratta Manish Saran
MBA (Marketing)
ROLL.NO.-520759616

SKYLINE BUSINESS SCHOOL


Acknowledgements

I am highly indebted to my project mentor Mrs. Manisha Mandiratta for


her continuous support, supervision motivation and guidance through out the
tenure of my project in spite of her hectic schedule who truly remained driving
spirit in my project and her experience gave me the light in handling research
project and helped me in clarifying the abstruse concepts, requiring knowledge and
perception, handling critical situations and in understanding the objective of my
work.

I would also like to express my heartiest thanks to all the respondents who
took time for answering my questions.

Manish Saran

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TO WHOMSOEVER IT MAY CONCERN

This is to certify that Manish Saran student of PGDBM (2007-2009) of


Skyline Business School, Gurgaon has done this project under my guidance and
supervision from 20th January 2009 to 20th April 2009.
He has completed the project titled “A detailed study of consumer attitude
& behavior towards carbonated drinks.” towards the fulfillment of PGDBM
under my supervision.
During his project he was found to be very sincere and attentive to small
details whatsoever told to him.

I wish him luck and success in future.

Under the guidance of:

Mrs. Manisha Mandiratta


(Associate Professor)

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Executive Summary
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. Coca-Cola was first introduced by John
Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-
colored syrup in a three-legged brass kettle in his backyard. He first ―distributed‖ the product by
carrying it in a jug down the street to Jacob‘s Pharmacy and customers bought the drink for five
cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by
accident or otherwise, producing a drink that was proclaimed ―delicious and refreshing‖, a theme
that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda
fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was
only when a strong bottling system developed that Coca-Cola became the world-famous brand it
is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than
reveals its formula to the Government and reduces its equity stake as required under the Foreign
Regulation Act (FERA) which governed the operations of foreign companies in India. In the new
liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through
its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The
main objective of this study lies in understanding the organization and studying and
understanding the consumers‘ perception and opinion about the latest product, Minute Maid
Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling
involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give
the product the required marketing push and to recognize the prospective consumers and their
opinion in order to develop and market the product in a better way in the near future. The
methodology used in studying and understanding the perceived views of consumers towards the
product was ‗SAMPLING‘. The findings of the activity have been drawn out in form of graphs
and suggestions have been offered there from.

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Table of Contents

1: Preface………..……………………………………………………………………6
2: Literature Review……………………………………………………………….7
3: Chapter 1 Introduction
3.1 A Brief Insight- The Beverage Industry in India……………..11
3.2 A Prospective – Carbonated Soft-Drink in India……………..12
3.3 Competitive Arena…………………………………………………...15
3.4 History of Coke………………………………………………………..17

4: Chapter 2 Manifesto for Growth


4.1 Mission………………………………………………………………….24
4.2 Vision……………………………………………………………………24
4.3 Values…………………………………………………………………..24
5: Chapter 3 Manufacturing & Distribution Strategy
5.1 Manufacturing Strategy……………………………………………27
5.2 Distribution strategy………………………………………………..28
6: Chapter 4 Coca Cola Marketing Strategy
6.1 Objectives/Goals……………………………………………………..30
6.2 Target Market…………………………………………………………30
6.3 Marketing Mix…………………………………………………………30
6.3.1 Product……………………………………………………….30
6.3.2 Price…………………………………………………………...30
6.3.3 Promotion……………………………………………………31
6.3.4 Placement……………………………………………………31

7: Chapter 5 Brands of Coca-Cola


7.1 Energy Drinks…………………………………………………….……33
7.2 Juices/Juice Drinks…………………………………………….…….33
7.3 Soft Drinks……………………………………………………….……..33
7.4 Sports Drinks…………………………………………………….…….33
7.5 Tea and Coffee………………………………………………….……..33
7.6 Water…………………………………………………………….………33
7.7 Other Drinks………………………………………………….………..34
7.8 Indian Brands…………………………………………………………34

8: Chapter 6 Objective of Study


8.1 Aim/Objective…………………………………………………………36
8.2 Methodology……………………………………………….…………..36

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8.3 Procedure………………………………………………………………36
8.4 Findings…………………………………………………………………37
8.4.1 Graph 1: Gender of Consumer…………………………37
8.4.2 Graph 2: Age Group of Consumer…………………….38
8.4.3 Graph 3: Occupation of Consumer……………………39
8.4.4 Graph 4: Number of People Buy Cold Drink…….….40
8.4.5 Graph 5: Which Brand People Buy...........................41
8.4.6 Graph 6: Reason to Purchase Cold Drink……………42
8.4.7 Graph 7: People Seen Ads of Cold Drink…………….43
8.4.8 Graph 8: Ads Remember Most…………………………44
8.4.9 Graph 9: Reason to Remember Ads…………………..45

9: Chapter 7 Calculations
9.1 Testing of Hypothesis………………………………………..47
9.2 Major Findings……………………………………………….…50
9.3 Suggestions…………………………………………………..…51
9.4 Conclusion…………………………………………………….…52
9.5 Limitation……………………………………………………..…53

10: Bibliography……………………………………………………………………54
11: Questionnaire……………………………………………………………….…55

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Preface

Market provides a key to gain actual success only to those brands which match best to
the current environment i.e." imperative" which can be delivered what are the people needs
and they are ready to buy at the right time without any delay. It is perfectly true but this also
depends on availability of good quality products and excellent taste and services which further
attract and add a golden opportunity for huge sales.

This also depends on the good planning approach and provide ample opportunity plus
sufficient amount of products for sales in the coming next financial year.

This survey report introduces study of consumer‘s preferences towards carbonated


beverages. After going through a detail analysis of market behavior and future prospect, it may
also provide an opportunity to COCA COLA to frame a good future plan to satisfy maximum
needs of the customers and established its guiding role in the market of Delhi in particular and
through out the country as a whole. The study report will also provide an opportunity to
delineate its market potential business areas, products & services are to be offered by the
company to the customers.

This study report also provides the various factors affecting the services. Marketing
Division of COCA COLA has to keep in mind various factors specially while preparing a plan
for marketing its product or services. Detail description along with analysis of surveyed data is
being presented in this report.

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Literature Review:

1. A study of factors responsible for brand preference in FMCG sector.


The purpose of this paper is the study of factors responsible for brand preference in
FMCG products, increasing competition, more due to globalization, is motivating many
companies to base their strategies almost entirely on building brands. Brand preference
means to compare the different brands and opt for the most preferred brand. This brand
preference is influenced by various factors. According to this study many factors were find
out for preferring a brand like:
Brand persona
Brand constancy
Brand loftiness
Brand value.
In the identification of factors affecting the brand preference, it was concluded that brand
persona is the most effective factor that affects the brand preference. This brand persona
deals with the personality aspects or the external attributes of brand, thus it can be said that
consumer prefer any brand by looking at the external attributes of a brand.
Journal of IMS, Vol 5 no.1, Jan-June 2008

2. Colour and flavour rule consumer preferences: Study


The intensity of colour and the flavour are the key drivers behind consumer acceptance of
beverages, says a new study involving DANONE. But packaging and labelling are not as
important for winning over consumers, according to findings published in the journal Food
Quality and Preference, The study involved consumers at different stages of development
and highlights the importance of adopting a ―sensory marketing approach,‖ said the
researchers from French research organisation Adriant, the University of Rennes 1,
DANONE R&D, and Institute Paul Bocuse.
―Companies need to continuously innovate to maintain market leadership,‖ wrote the
researchers. ―When the market is overloaded the challenge consists in creating innovative
products able to attract and satisfy consumers.‖ ―This experiment showed the feasibility of
the proposed multi-sensory design method based on mixed qualitative and quantitative
approaches.‖ The study also demonstrates the importance of flavour and colour selection for
new products.
The global flavours market was been valued at some US$18bn in 2006 (Business
Insights). Meanwhile, the value of the international colourings market was estimated at
around $1.15bn in 2007 (€731m), up 2.5 per cent from $1.07bn (680m) in 2004, according to
Leatherhead Food International (LFI). Natural colours now make up 31 per cent of the
colourings market, compared with 40 per cent for synthetics, according to LFI.

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3. Bombarding the senses: Study
By choosing to formulate a new beverage, the researchers noted that the new product
would need to be differentiated by improving the sensory characteristics. Four factors were
identified for the formulation: four colour intensities), three flavourings, two label types (soft
versus hard), and two pack sizes (standard versus oversize). By using both quantitative
(hedonic testing) and qualitative (focus groups) approaches, the researchers found that ―the
main factors which drive consumer preference for this concept are colour intensity and
flavouring‖. Indeed, colour intensity accounted for 43 per cent and flavour 32 per cent of the
consumers‘ overall liking. ―Pack size and label type are taken into account by the consumer
to a lesser extend,‖ they added. ―This methodology of a qualitative screening associated to a
conjoint analysis on relevant sensory attributes has shown good performances to fit
consumers‘ expectation: it has now to be reproduced, as every brand, concept and product is
a unique combination designed for a specific consumer group,‖ concluded the researchers
Source: Food Quality and Preference
Volume 19, Issue 8, Pages 719-726
By Stephen Daniells, 07-Oct-2008

4. Taste or health: A study on consumer acceptance of cola drinks


This study examined the relative contributions of taste and health considerations on
consumer liking and purchase intent of cola drinks. Eight types of commercial cola drinks
were evaluated by 305 adult consumers who also completed a brief questionnaire on food
habits. Data were analyzed using factor analysis. Results revealed that purchase intent of cola
drinks was strongly related to degree of liking and to several key sensory attributes including
saltiness, drinks flavor and greasiness. These variables emerged as the first factor in the
analysis, suggesting that consumers perceive these characteristics as being most important in
their choice of cola drinks. Factor 2 described a health dimension and was related to
respondents' attitudes toward fat in the diet. Factor 3 comprised two remaining sensory
attributes (color and crunchiness), which apparently were of minor importance to the
respondents. These data suggest that in spite of current concern about reducing dietary fat,
health remains secondary to taste in the selection of cola drinks for consumers in this
population.
Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology,
15 September 1998
.

5. Paired preference tests using placebo pairs and different response


options for cola drinks, orange juices : Abstract

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Preference tests were performed for varieties of cola drinks, orange juices and using three
response protocols: the traditional paired preference test with the "no preference" option, a 9-
point hedonic scale and a 6-point hybrid hedonic/purchase intent scale. The different stimuli
to be assessed were presented in pairs, but putatively identical stimuli were also presented as
a "placebo" pair. Performance on the placebo pair with identical stimuli provided a measure
of the hidden demand characteristics of the test protocol. The presentation of the different
pairs provided a measure of preference accompanied by such hidden demand effects.
Comparison between the two allowed a better measure of preference per se. The order of
presentation of the identical and different pairs did show occasional slight evidence of
contrast effects. For the placebo "identical" pairs, a majority of consumers reported false
preferences. Liking questions with the hedonic and hybrid scales elicited fewer false
preferences than preference questions with the paired preference protocol. Yet, the effects
tended to be slight. The 6-point hedonic/purchase intent scale exhibited the fewest false
preferences in the placebo condition, and this was because of its fewer categories rather than
any cognitive strategy change elicited by its different labels.
Source-Davis Woman‟s
Journal of Food Science and Technology, July 31, 2007

6. “consumer awareness and consumption pattern of food products”


This paper aims to investigate the degree of brand awareness of various food products in
relation to background and education of the household, the consumption pattern of various
food products consumed by respondents in the light of their areas, income levels and
education. a sample of200 respondents comprising 100 form rural area and 100 from urban
area were taken. Data are analyzed with the help of mean.SD,co –efficient of variance-test
and f-test. The finding of this study reveals that there is low degree of brand awareness in
rural areas, whereas there is a moderate degree of brand awareness in urban India. The highly
educated rural and urban respondents have high degree of brand awareness for many food
products, and the less educated rural and urban respondents have low degree of brand
awareness for many food products.
Journal of IMS Vol 3 no.1, Jan-June 2007

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Chapter 1
Introduction
A Brief Insight - Beverage Industry in India
The Carbonated Drinks Industry In India
About Coca Cola
Competitive Arena
History of Coca Cola
A 100 Years of The Curvy Glass Bottle
Globalization Strategies
The Future of Coca Cola

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Beverage Industry in India: A Brief Insight

In India, beverages form an important part of the lives of people. It is an industry, in


which the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
 Alcoholic, non-alcoholic and sports beverages
 Natural and Synthetic beverages
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens
 Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.

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If the behavioral patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to make the industry
more affordable.

Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:
The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant
to the category.
Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand
and sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.

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The Carbonated Drinks Industry In India; A Perspective

The Rs.17000 crore market of carbonated drinks industry in India looked really bad just
after the ―Pesticide‖ controversy last year. But some cool promotions and quick reactions by cola
companies have handled the crisis satisfactorily. The controversy has thought the industry few
lesson or so and in the process consumer and the economy also benefited.
―Colas, contributing more than 50 per cent to fizzy drink sales, saw a huge slide after the
pesticide controversy, but are believed to be making a come back. Thanks to increased
advertisement spends which is over 20 per cent higher than last year. There is some good news
on the non-cola segment. The lime and lemon segments with brands like sprite and 7up have
registered a 30 to 40 per cent growth, although on a smaller base. ― 1 Nevertheless, the battle
between two cola giants, Coke & Pepsi, did not go any slow. Rather it has become fiercer. They
are now fighting each other even at the local level. That too the trend is as old as start of this
millennium.
―All‘s fair, as usual, in a cola war, even a slugfest between two real-life brothers!
Always thriving on ambush marketing activities, the two cola giants Coca-Cola India and
PepsiCo have now gone to the extent of putting up two real-life brothers (who also happen to be
celebrities) against each other with the strategic aim to gain rapid market share in one of the
country‘s largest carbonated soft drinks (CSD) market: Andhra Pradesh (AP).In the latest move,
the brothers who are also Telugu cine stars—Chiranjeevi and Pavan Kalyan—have been pitched
against each other by their respective sponsors Coke and Pepsi using a peculiar below-the-belt
technique.―2
The present scenario of the carbonated drinks market is behaving the way it has all to do
with a duopoly situation. A duopoly is a competitive situation where there are two competitors,
normally of roughly equal size. Although in every place they have local competitors and there is
a huge unorganized flavoured water market. Yet again, packaged water is also a competitor to
the cola brands and in this category neither of the two cola companies are market leaders.
However, as far as the carbonated drinks are concerned there are only two brands, Coke and
Pepsi. Therefore, we can safely say that this condition does qualify to be a near duopoly situation
and thus there is such intense competition. Unless, the two parties in a duopoly collaborate with
each other, which is certainly not the case in the cola market worldwide or in India, this battle is
not going to slow down even a bit! Rather, it would grow stronger with every passing day.
In a situation like this it is very interesting to observe marketing strategies in general and Product
& Pricing strategies in specific of the players, merely because the action of one player is bound
to invite similar reaction from the other. As if, the third law of Newton, that ―every action has an
equal and opposite reaction‖, can‘t fit better in any other situation!

1
Molshree Vaid, , January 28, 2006, www.cnn-ibn.com
2
www.magindia.com, June '19, 2002, FE
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In a duopoly like situation, as far as cola industry in India is concerned, it can be said that
it is foolish to cut prices unless, one of the two parties has a much lower cost base. But that is not
the case in India. In fact, both the companies, Coke and Pepsi, invest heavily in advertising and
in distribution through their franchise as well as their own systems. However, a great deal of
attention is paid by both companies to cost, particularly in the development of a tightly effective
supply chain system in which economies are squeezed out and, wherever possible both
overheads and working capital are controlled. Therefore, it is extremely difficult to for both the
parties to play with the prices. Rather, it is counter-productive exercise, as when prices are
reduced in a particular area by one of the cola brands, the second must follow.
If we look into the history of pricing of these two particular players of the carbonated
drinks industry, we will see that the first major initiative in the price front took place some years
ago when the brand Coca-Cola came back to India. At that point of time colas were available
only in 200 ml bottles. Coca-Cola, in it‘s come back trail, broke the tradition by launching Cola
in the 300 ml size bottles but at the same price as Pepsi, which was then in a 200 ml bottle. With
this strategy, Coke expected to gain advantage in the market especially in India, which is
traditionally a highly price sensitive market. However, Pepsi, as being a fierce competitor was
prepared for it and soon launched its colas in the 300 ml sizes. Thereby, in India, it was the 300
ml bottle which became the standard in most parts of the country, making the price a parity issue
between the two brands.
Then, a few years ago, one litre and 1.5 litre non-returnable PET bottles at a discount in
comparison to, a 300 ml returnable glass bottle, the traditional packaging in this product
category, was launched by Pepsi. It was a successful move resulting in significant increase in the
consumption level especially amongst the loyal consumers in the urban areas. And part of the
rule of the game, Coke followed Pepsi in the above move in order to reduce the cost per glass to
the consumer.
Then came the days of a 500 ml non-returnable PET bottle which was advertised almost
totally on the cost of the consumer per 100 ml of cola! Nevertheless, the great advantage that the
PET bottles provided is that they have increased home consumption level which was not of much
significance compared to out of home consumption till then.
And in very recent times the Coke did a u-turn that is price cuts. The latest move of
reducing price to the consumer is the very opposite of what has been happening to-date. It has
now re-launched a 200 ml bottle at a unit price of approximately 2/3 rd of the 300 ml price, thus
making retail purchase look cheaper. This strategy was meant to fight consumption pattern of
smaller towns and rural areas where two people share a 300 ml bottle. Importantly, by making
the bottle smaller it has only reduced unit price without affecting the trade margin.
It has been reported that Pepsi has been cutting the price of its 300 ml bottle in some
places, until an inventory of 200 ml bottles was built, as an answer to the Coke‘s strike.
However, this act of Pepsi might boomerang as there is a strong probability of having some
negative effect on the supply chain and other inventory cost in the long run.

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About Coca Cola
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world‘s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Company‘s beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-
drink powder products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating
in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has
successfully applied a simple formula on a global scale: ―Provide a moment of refreshment for a
small amount of money- a billion times a day.‖

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the Company.
This unique worldwide system has made The Coca-Cola Company the world‘s premier soft-
drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any
other consumer product, has brought pleasure to thirsty consumers around the globe. For more
than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of
people every day.

The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They aim
at managing their business well with people who are strongly committed to the Company values
and culture and providing an appropriately controlled environment, to meet business goals and
objectives. The associates of this Company jointly take responsibility to ensure compliance with
the framework of policies and protect the Company‘s assets and resources whilst limiting
business risks.

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Competitive Arena

The soft drink market all over the world has been witnessing a neck to neck battle
between the two major players, Coca-Cola and Pepsi since the very beginning. The thirst
quenchers are trying hard to have the major chunk of the pie of carbonated soft drink market.
Both the players are spending their energies in building capacity, infrastructure, promotional
activities etc.

Coca-Cola being 11 years older than Pepsi has dominated the scene in most of the soft
drink markets in the world and enjoying
leadership in terms of market share. But the
Coca-Cola people are finding it hard to keep
away Pepsi, which has been narrowing the
gaps regularly. The two are posing threats to
each other in every nook and corner of the
world. While Coca-Cola has been earning most
of its bread and butter through beverage sales,
Pepsi has a multi products portfolio with some
portion from the same business.

The two warriors are face to face once


again here in India with different strategies and tactics to attack the rival. Coca-cola is focusing
upon the joint ventures with the existing bottlers {FOBO} franchise owned bottling operations
to enhance its control on manufacturing and marketing of its products range and attain the
quality standards of its class.

Countering it Pepsi has taken the battle in its own hands by floating as investment of $ 95
billion to set Pepsi Company. India holdings, as subsidiary for {COBO} company owned
bottling operations. Both the companies are following different path to reach the same destiny
i.e. to fetch the bigger portion of aerated soft drink market. Both consider India a huge potential
market, as per capita consumption here is a mere 3 serving annually against the world average of
80. Therefore, they are putting in their best efforts to woo the Indian consumer who has to work
for 1.5 hours to buy a bottle of soft drink. In comparison to the international norms minutes, a
major hurdle to cross over for both the athletes for getting no.1 position comparison to the inter.
Coca-cola is well set with its 53 bottling sites through out the country giving it an edge over
competition by processing a well-built bottling and distribution set-up. On the
other hand, Pepsi, with two more years in India, has been able to set an image
of a winner in India and has been able to get the pulse of the India soft drink
market. The soft drink giants are leaving on stone unturned and her for the
long terms.

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Coca-cola has been penetrating the market through its wide product range with a
determination to change consumption pattern of soft drink in India. Firstly, they upgraded the
whole industry by introduction 300 ml bottles, which in turn had given the industry a booming
growth of 20% as compared to the earlier 5%. They want to develop a coca culture here and are
working on a strategy to offer soft drink in every possible package. In coca-cola camp, the idea
of competition has not come from Pepsi, but from the other beverages such as tea, coffee,
Nimbu-Pani, water etc. Pepsi is quite aggressive in its approach to Indian consumer. They are
desperately working on the strategy to be winners in the hot cola war between two big barons.
According to Pepsi philosophy, it‘s the madness that encourages executive to think, to conjure up
those creative tactics to knock the fizz out their competition. Pepsi had plumbed a large on the
visibility of its blue red and white logo. They have
been going with aggressive marketing by putting
Amir Khan, Gautam Gambhir, Genelia D‟Souza
in their advertisement to endorse their brand, the role
models for its targeted consumer the teenagers. They
have increased the fizz in the market place by
introducing the dispensers called fountain Pepsi and
have been enjoying a lead over its rival there.

The latest communication showcases Aamir Khan as a narrator, observing different


situations in the lives of the people. Taking the audience through different moments of life Aamir
observes that though the times have changed but the happy moments are still celebrated together
and not in isolation. The entire communication is an ensemble of many such incidents in our
lives. The communication ends with Aamir saying “Aap Muskuraingey, Bul Bule Gun
Gunayaingey” – Open Happiness” (You smile, so do the Bubbles in a bottle of Coca-Cola).”

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History of Coca Cola

Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed that
Coca-Cola became the world-famous brand it is today.

1894 – A modest start for a Bold Idea


In a candy store in Vicksburg, Mississippi, brisk sales of the
new fountain beverage called Coca-Cola impressed the
store's owner, Joseph A. Biedenharn. He began bottling
Coca-Cola to sell, using a common glass bottle called a
Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler
thanked him but took no action. One of his nephews already had urged that Coca-Cola be
bottled, but Candler focused on fountain sales.

1899 The first bottling agreement


Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph
B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the
United States (specifically excluding Vicksburg) -- for the sum of one dollar. A
third Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 … Rapid growth


The three pioneer bottlers divided the country into territories and sold bottling
rights to local entrepreneurs. Their efforts were boosted by major progress in
bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-
Cola bottling plants were operating, most of them family-owned businesses. Some were open
only during hot-weather months when demand was high.

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1916 … Birth of the contour bottle
Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators.
A group representing the Company and bottlers asked glass manufacturers to offer ideas for a
distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won
enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the
few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most
recognized icons in the world - even in the dark!

1920s … Bottling overtakes fountain sales


As the 1920s dawned, more than 1,000 Coca-Cola bottlers were
operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge
hit after their 1923 introduction. A few years later, open-top metal coolers became the
forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola
exceeded fountain sales.

1920s and 30s … International expansion


Led by longtime Company leader Robert W. Woodruff, chief executive
officer and chairman of the Board, the Company began a major push to
establish bottling operations outside the U.S. Plants were opened in
France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa.
By the time World War II began, Coca-Cola was being bottled in 44 countries.

1940s … Post-war growth


During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General Eisenhower's base
in North Africa. Many of these war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the Company's worldwide business.

1950s … Packaging innovations


For the first time, consumers had choices of Coca-Cola package size and type -- the traditional
6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were
also introduced, becoming generally available in 1960.
19
1960s … New brands introduced
Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-
Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought
diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s.
Today hundreds of other brands are offered to meet consumer preferences in local markets
around the world.

1970s and 80s … Consolidation to serve customers


As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved
into international mega-chains. Such customers required a new approach. In response, many
small and medium-size bottlers consolidated to better serve giant international customers. The
Company encouraged and invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with global retailers.

1990s … New and growing markets


Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century…. & Still Going Strong


The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as people seek brands that honor local identity and the
distinctiveness of local markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.

20
A 100 Years of The Curvy Glass Bottle Of Coca Cola

Coca-Cola Company marks a mile stone on Wednesday, 24th March 1899 Chattanooga;
Tenn. where its first bottling plant was started 100 year ago by two men struck one of the
most lucrative business deals in US history.

Joseph whitehead and Benjamin Thomas offered coca-cola company owner Asia
Candler a dollar for the right to bottle soft drinks in 1899. Today 1 billion soft drinks are sold
each day in more than 200 countries around the world. Candler had purchase what would
become the cola company for $2,300 eight years earlier from john Pemberton, an Atlanta
pharmacist who astonished the world. Candler though the bottling venture would never succeed,
but he signed the contract with white head and Thomas any way, “and the rest is history”, bob
Lovell, vice president of marketing for coca-cola bottling company. United inc., said in
telephone interview from Chattanooga.

21
Coca Cola Globalization Strategies

The coca-cola company is global player and approximately 70 % of its volume and 80 %
of its profit come from outside the United States of America. Although it was perceived as a
standardized brand across the world, coca-cola had been quietly fine turning its international
marketing strategies to suit the needs of individual national markets. Only the brand coca-cola,
Sprite and Fanta were marketed globally. In Latin America and Europe, where heavy consumer‘s
preferred existed for lemon lime and orange soda.
Coke had developed a wide range of formulations and flavors to cater the needs of
different countries. In ei Salvador and Venezuela, a version of Fanta called Fanta kolita a
cream soda type of drink became extremely popular. Similarly, in Indonesia coke had been
selling pineapple and banana Limca, Maaza and Thums up in 1993.

22
The Future of Coca Cola

While doing business overseas offers coke wonderful growth opportunities it also has its
own disadvantages. The economic slowdown in various overseas markets and the strong dollar
had their impact on coca-cola revenues and bottom line in 1998. But the company is optimistic
about the future.
M Douglas Investor, the Chief Executive Officer of the Coca-Cola Company says, ―This
past year 2006 has been a challenging period for the Coca-Cola Company as economic
environment became more uncertain in the later part of 2006, and we strongly believe that our
fundamental opportunities for long term growth have not changed‖.
As long as maximization of share holder wealth remain Coke‘s focus for its future is
assured Goizueta had stated and proven to the world that focus on shareholder wealth does more
good to the company than focus on revenues and it is not that coke does not enjoy volumes for it
is world‘s No.1 soft drink manufacture. It is not content with this title and is aiming at higher
volumes year after year. Surely coke will continue to grow. Point on Roberto had reduced the
company basically to its trademark and the returns are so astronomical as to be off the boards. It
just absolutely added a jet engine to their performance.

23
Chapter 2
Manifesto for
Growth
Mission
Vision
Values

24
Mission, Vision & Values
Our mission, vision and values outline who we are, what we seek to achieve, and how we
want to achieve it. They provide a clear direction for our Company and help ensure that we are
all working toward the same goals.

Mission Statement
Our mission declares our purpose as a company. It serves as the standard against which we
weigh our actions and decisions. It is the foundation of our Manifesto.
To refresh the world in body, mind and spirit.
To inspire moments of optimism through our brands and our actions.
To create value and make a difference everywhere we engage.

Vision Statement
Our vision guides every aspect of our business by describing what we need to accomplish in
order to continue achieving sustainable growth.
People: Being a great place to work where people are inspired to be the best they can be.
Portfolio: Bringing to the world a portfolio of
quality beverage brands that anticipate and
satisfy people's desires and needs.
Partners: Nurturing a winning network of
customers and suppliers, together we create
mutual, enduring value.
Planet: Being a responsible citizen that
makes a difference by helping build and
support sustainable communities.
Profit: Maximizing long-term return to
shareowners while being mindful of our
overall responsibilities.

Values
Our values serve as a compass for our actions and
describe how we behave in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
25
Chapter 3
Manufacturing
&
Distribution Strategy
Manufacturing Process
Distribution Network

26
Manufacturing Process

The manufacturing of the products of Coca-Cola involves the following steps:


Water is received from the River Cauvery and it passes through the water treatment plant,
further passing through the sand filter and the activated carbon filter, so as to attain pure
cleansed water.
In the syrup room, the concentrate received from another bottling plant situated at Pune,
is blended with the sugar syrup
Once both the water and the final syrup are ready, they are both mixed together and sent
to the carbonator section where Carbon Dioxide is added to the mixture to form the final
product.
On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected
and washed for the purpose of filling in the final product in it. This step does not take
place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET
bottles), labeled and cased in order to be sent into the warehouse for distribution.

27
Distribution Network
Coca cola India has a wide and well managed network of salesmen appointed for taking
up the responsibility of distribution of products to diverse parts of the cities. The distribution
channels are constructed in such a way that the demand of customers is fulfilled at the right
place and the right time when it is needed by them.

A typical distribution chain at HCCBPL would be:


Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse ---
Retail Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes,
and every salesman is assigned to one particular route, which is to be followed by him on a
daily basis. A detailed and well organized distribution system contributes to the efficiency of the
salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher
profits to the firm.

28
Chapter 4
Coca -Cola
Marketing Strategy
Objectives/Goals
Target Market
Marketing mix

29
Coca Cola’s Marketing

Marketing is the role used by the business to plan, price, promote and distribute
products/services to individuals. The Coca-Cola Company's marketing includes:

Objectives/Goals
Coca-Cola main objectives are to supply everyone their favorite drink and to satisfy the
consumer needs and wants. Coca-Cola second main objectives are to provide profit to the
shareholders and increase the market share.

Target Market
The company's beverages are generally for all consumers. However, there are some
brands, which target specific consumers.
For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age,
between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do
sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.
This type of market approach refers to market segmentation. The Coca-Cola Company when
advertising has a primary target market of those who are 13-24, and a secondary market of 10-
39.

Marketing mix
Product
The Coca-Cola Company's products include beverage concentrates and syrups, with the
main product being finished beverages. The business has over 300 brands of beverages around
the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and
PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres,
1.25 litres, 600mL and 300mL. These are also available in aluminum cans of 375mL. Coca-Cola
is the most well known trademark, recognized by 94 per cent of the world's population. The
business is very successful and holds a very good reputation.

Price
The prices of Coca-Cola's products vary according to the brand and the size. The prices
of the main products are shown below.
Product Size Prices: Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite
Coke, Fanta, Lift, Sprite Coca-Cola soft drinks Coca-Cola soft drinksPowerAde2L bottle1.25L
bottle600mL bottle300mL bottle375 x 30 cans375 x 18 cans.
The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol
stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations
and convenient stores usually sell Coca-Cola products at a fixed price. However, retail outlet
uses pricing methods and pricing strategies when selling Coca-Cola products.
30
Competition-based pricing: Coca-Cola products are usually priced below, above or equal to its
competitors' prices.
Discount price: Coca-Cola products are often marked down during sale periods and special
occasions. This will generate sales Increase profits.

Promotion
The business uses a range of promotional activities
Advertising: The Coca-Cola Company uses advertising as its main
source of increasing consumer awareness. It mainly uses the
television. There are many television advertisements on Coca-Cola
products. This source allows the company's products to reach a large
audience. One of the television advertisements for Coca-Cola soft
drinks was the 'You know you want it' advertisement. One of the older one are ' If you drink it,
you get better of life' the company also uses the radio as another source of advertisement. This is
a cheaper source of approach compared to the television. Recently, the company benefited from
its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup.
Where millions were watching these games, the business had substantial advertising and
promotions of the company's brands
Personal selling: Every year, The Coca-Cola Company has a highly trained sales team, which
acts as a representative of the company to the retailers. This strategy helps to maintain service
and product loyalty. It has been demonstrated by the business to be highly effective.
Publicity: In February 2003, Vanilla Coke was released to the media as a news brief outlining
the huge profit achieved by the business (from the Sydney Morning Herald 14th February 2003).
This helped The Coca-Cola Company to strengthen the image of the business's products.

Placement
The Coca-Cola Company sells its products to bottling and canning operations,
distributors, fountain wholesalers and some fountain retailers. They distribute them to retail
outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.
Indirect distribution: The Coca-Cola Company uses intermediaries in its distribution. That is,
the company does not sell its products directly to its consumers.
Intensive distribution: The Coca-Cola Company uses the intensive distribution strategy. The
business's products are sold in almost every outlet including:
Retail outlets
Small shops
Restaurants
Petrol stations
Newsagents
Schools
Sports
Entertainment venues
31
Chapter 5
Brands of
Coca Cola
Energy Drinks
Juices/Juice Drinks
Soft Drinks
Sports Drinks
Tea and Coffee
Water
Other Drinks
Indian Brands

32
Brands of Coca Cola
Coca-Cola Zero® has been one of the most successful product launches in
Coca Cola‘s history. In 2007, Coca Cola‘s sold nearly 450 million cases globally.
Put into perspective, that's roughly the same size as Coca Cola‘s total business in
the Philippines, one of our top 15 markets. As of September 2008, Coca-Cola Zero
is available in more than 100 countries.

Energy Drinks
For those with a high-intensity approach to life, Coca Cola‘s
brands of Energy Drinks contain ingredients such as ginseng extract,
guarana extract, caffeine and B vitamins.

Juices/Juice Drinks
We bring innovation to the goodness of juice in Coca Cola‘s
more than 20 juice and juice drink brands, offering both adults and
children nutritious, refreshing and flavorful beverages.

Soft Drinks
Coca Cola‘s dozens of soft drink brands provide flavor and
refreshment in a variety of choices. From the original Coca-Cola to
most recent introductions, soft drinks from The Coca-Cola Company
are both icons and innovators in the beverage industry.

Sports Drinks
Carbohydrates, fluids, and electrolytes team together in Coca
Cola‘s Sports Drinks, providing rapid hydration and terrific taste for
fitness-seekers at any level

Tea and Coffee


Bottled and canned teas and coffees provide consumers' favorite
drinks in convenient take-anywhere packaging, satisfying both
traditional tea drinkers and today's growing coffee culture.

Water
Smooth and essential, our Waters and Water Beverages offer
hydration in its purest form.

33
Other Drinks
So much & more than soft drinks, Coca Cola‘s brands also include milk products, soup,
and more so you can choose a Coca Cola Company product
anytime, anywhere for nutrition, refreshment or other needs.

Indian Brands

Coca-Cola India Launches Fanta Apple


Part of the phased launch, Fanta Apple will be initially made available to consumers in
the two Southern Indian States of Andhra Pradesh & Tamil Nadu, followed by a national roll out
in the next two months. The company has also signed up the young and charming Genelia
D‟Souza of „Bommarilu‟ „Boys‟ and „Jaane Tu Ya Jaane Na‟ fame as the new Fanta Brand
Ambassador.

34
Chapter 6
Objective of
Study
Aims/Objective
Methodology
Limitations
Analysis and Findings

35
Aims/Objective
Understanding Indian Beverage Industry (carbonated & non-carbonated).
Understand Marketing Strategy of Coke.
Consumer perception towards Coke.
To understand buying behavior of consumers.
To understand image of coke vis-à-vis other brands.
To recommend for future course of action.

Methodology
Research Design: Descriptive research- also known as statistical research, describes data and
characteristics about the population. Descriptive research answers the questions who, what, where, when
and how.

Types of data collected


1. Primary data: based on questionnaire, will be distributed among consumers & direct interview will
be taken, to collect the data.
2. Secondary data: collected from organization, articles, magazines, books & newspaper research
reports.
3. Sampling: Stratified sampling technique will be considered. A sample size of 200 consumers will be
selected from Dwarka to study. The process of grouping members of the population into relatively
homogeneous subgroups before sampling. Proportionate allocation uses a sampling fraction in each
of the strata that is proportional to that of the total population. If the population consists of 60% in
the male stratum and 40% in the female stratum, then the relative size of the two samples (three
males, two females) should reflect this proportion.
4. Sample size: 200 consumers having history of consuming beverage will be selected as sample size
i.e. the total sample size will be 200 consumers. Than these samples were further divide into sub-
groups based on their age, gender etc.
5. Propose approach for future course of action is based on realistic information.
6. Project would be conducted in a particular area/zone.i.e. Dwarka

Limitations
1. Time constraints
2. Difficult to gather primary data as some of the respondents is not taking questionnaire seriously.

36
Analysis and Findings

1. GENDER OF THE CONSUMER


Valid Cumulative
Valid Frequency Percent
Percent Percent
Male 104 52 52 52
Female 96 48 48 100
Total 200 100 100
Table 1. Gender of Consumer

Gender of the consumer

Males
48% 52%
Females

Graph 1. Gender of Consumer

37
2. AGE GROUP OF THE CONSUMER
Valid Cumulative
Valid Frequency Percent
Percent Percent
Below 15 68 34 34 34
16 – 25 56 28 28 62
26 – 35 44 22 22 84
36 – 45 26 13 13 97
46 & Above 6 3 3 100
Total 200 100 100 100
Table 2- AGE GROUP OF CONSUMER

Graph 2 - AGE GROUP OF THE CONSUMER

38
3. OCCUPATION OF THE CONSUMER
Valid Cumulative
Valid Frequency Percent
Percent Percent
Professional 26 13 13 18
Businessman 18 9 9 22
Service 52 26 26 48
Student 98 49 49 97
Any other 6 3 3 100
Total 200 100 100 100

Table 3 - OCCUPATION OF THE CONSUMER

Consumer Occupation
3%

13%
Professional
9% Businessman
Service
49% Student
26%
Any other

Graph 3 - OCCUPATION OF THE CONSUMER

39
4. NUMBER OF PEOPLE BUY COLD DRINKS

Cumulative
Valid Frequency Percent Valid Percent
Percent
Yes 194 97 97 97
No 6 3 3 100
Total 200 100 100

TABLE 4 – NUMBER OF PEOPLE BUYS COLD DRINK

Consumer Buy Cold


Drink
3%
Yes
No
97%

GRAPH 4 – CONSUMER BUYS COLD DRINK

40
5. WHICH COLD DRINKS PEOPLE BUY

Cumulative
Valid Frequency Percent Valid Percent
Percent
COKE 36 18 18 18
PEPSI 34 17 17 35
7 UP 24 12 12 47
SPRITE 22 11 11 58
FANTA 16 8 8 66
MAZZA 16 8 8 74
THUMSUP 52 26 26 100
Total 200 100.0 100.0

TABLE 5 – BRANDS OF COLD DRINK CONSUMER BUYS

Consumer Buy Cold


Drink
COKE
19% PEPSI
23%
7 UP
SPRITE
8% 18%
FANTA
9%
MAZZA
11% 12%
THUMSUP

GRAPH 5 - BRANDS OF COLD DRINK CONSUMER BUYS

41
6. REASON TO PURCHASE COLA DRINKS

Valid Cumulative
Valid Frequency Percent
Percent Percent
Brand name 40 20 20 20
Taste 50 25 25 45
Brand ambassador 16 8 8 53
packaging 20 10 10 63
Easy availability 32 16 16 79
Price 40 20 20 99
Any other 2 1 1 100
Total 200 100 100

TABLE 6 – REASON OF PURCHASE

Consumer’s Buying
Reasons
1%
Brand name
20% Taste
20%
Brand ambassador
packaging
16%
25% Easy availability
10% Price
8%
Any other
GRAPH 6 – REASON OF PURCHASE

42
7. PEOPLE HAVE SEEN THE ADVERTISEMENT OF COLD DRINK
Cumulative
Valid Frequency Percent Valid Percent
Percent
Yes 196 98 98 98
No 4 2 2 100
Total 200 100 100

TABLE 7 – NUMBER OF PEOPLE SEEN/REMEMBER ADS

Consumer’s Remember Ads


2%

Yes
No

98%

GRAPH 7 – NUMBER OF PEOPLE SEEN/REMEMBER ADS

43
8. ADVERTISEMENT PEOPLE REMEMBER THE MOST

Cumulative
Valid Frequency Percent Valid Percent
Percent
Coke 54 27 27 27
Pepsi 56 28 28 55
7 Up 32 16 16 71
Sprite 42 21 21 92
Fanta 8 4 4 96
Mazza 6 3 3 99
THUMSUP 2 1 1 100
Total 200 100 100

TABLE 8 – MOST EFFECTIVE ADS

GRAPH 8 – MOST EFFECTIVE ADS

44
9. REASON TO REMEMBER THE ADVERTISEMENT

Valid Cumulative
Valid Frequency Percent
Percent Percent
Creativity 48 24 24 24
Brand ambassador 50 25 25 49
Idea of delivering message 22 11 11 60
Frequency of add 50 25 25 85
Logical reason 30 15 15 100
Total 200 100

TABLE 9 - REASON TO REMEMBER THE ADS

GRAPH 9 - REASON TO REMEMBER THE ADS

45
Chapter 7
Calculations
Testing of Hypothesis
Major Findings
Suggestions
Conclusion
Limitations of the Study

46
Testing Of Hypothesis

Hypothesis 1:

A. Null hypothesis (H0) = Taste is the preferred attribute which customers look for in Coke.
B. Alternate hypothesis (H1) = Taste is not the preferred attribute which customers looks for
in Coke.
Level of significance = Let 5% be the level of significance in testing the hypothesis Since
the test s two tailed test , the value of z = ±1.96

Test formula:-

p‾ - p
Z=
√ {p (1-p)/n}

Where
P = sample proportion (calculated from graph) = 25%
p¯ = population proportion (known) = 26%
n = sample size = 200
.26 - .25
Z=
√ {.25 (1-.25)/200}

=.25

Calculated value Z = .25 falls within acceptance level in +1.96, so hypothesis is accepted.

Conclusion: Customer see the Coke because of it taste.

47
Hypothesis 2:

A. Null Hypothesis (H0) = Coke is a youth (16 – 25) drink.


B. Alternate Hypothesis (H1) = Coke is not a youth (16 – 25) drink.
Level of significance= Let 5% be the level of significance in testing the hypothesis Since the
test s two tailed test , the value of z = ±1.96

Test formula:-

p‾ - p
Z=
√ {p (1-p)/n}
Where
P = sample proportion = 28%
P¯ =population proportion = 34%
n= sample size=200
Now
.34 – .28
Z=
√ {.28 (1-.28)/200}

= - 2.01

Calculated value is not fall in acceptance level ,so the hypothesis is rejected.
Conclusion: The Coke is not only Youth (16 – 25) drinks but it also drinks by teenagers
below 15.

48
Hypothesis 3:

A. Null Hypothesis (H0) = Coca Cola is readily famous among students.

B. Alternate Hypothesis (H1)= Coca Cola is not readily famous among students.

Level of significance= Let 5% be the level of significance in testing the hypothesis Since the
test s two tailed test , the value of z = ±1.96

Test formula:-

p‾ - p
Z=
√ {p (1-p)/n}
Where
P = sample proportion = 48%
P¯= population proportion = 49%
N = sample size = 200
Now
.49 – .48
Z=
√ {.48 (1-.48)/200}

= . 33

Calculated value is fall in acceptance level, so hypothesis is accepted.


Conclusion: The Coca Cola is readily famous among students.

49
Major Findings

1. Out of 200 consumers, 52% are males and only 48% are females.

2. Maximum number of people surveyed is below 15 years.

3. Out of 200 people 13%are professionals, 9% are businessman, 26% are serviceman, and
49% are students.

4. Out of 200 respondents, 97% of consumers buy cold drinks and only 3% of them do not
buy.

5. 19% respondents prefer coke, 18% prefer Pepsi, 12% 7up, 11 % of them prefer Sprite,
9% Fanta, 8% prefer Mazza, and 23% prefer Thums-up.

6. 25% people purchase cold drinks because of taste, 20% people purchase cold drinks
because of brand name, 20% people purchase cold drinks because of packaging, 15%
people purchase cold drinks because of price, 11% people purchase cold drinks because
of brand ambassador, 8% people purchase cold drinks because of easy availability & 1%
people purchase cold drinks because of any other reason.

7. Out of 200 consumers 98% have seen the advertisement and only 2% have not seen the
advertisement of any brands.

8. 23% people remember the advertisement of coke, 23% people remember the
advertisement of Pepsi, 1% people remember the advertisement of 7up, 6% people
remember the advertisement of sprite, 4% people remember the advertisement of Fanta,
10% people remember the advertisement of Mazza, and 23% people remember the
advertisement of Thums-up.

9. 24% people remember the advertisement because of creativity, 25% people remember the
advertisement because of brand ambassador, 11% people remember the advertisement
because of their idea of delivering the message, 25% people remember the advertisement
because of frequency of ads, and 15% people remember the advertisement because of
logical reason.

50
Suggestions

On the basis of above study following suggestions can be given:

Perform a detail demand survey at regular interval to know about the unique needs and
requirements of the customer.
The company should make hindrance free arrangement for its customers/retailers to make
any feedback or suggestions as and when they feel.

The company should focus to bring some more flavors and variety of schemes rather then
bring second and repeat same old one. It is always better to be first than being better.
The company must be aware of and keep at least the latest knowledge of its primary
competitors in market and try to make a perfect anticipated efforts to meet the same
The company should also use time to time some more and new attractive system of word
of mouth advertisement to keep alive the general awareness in the whole market as a
whole.
The company should be always in a position to receive continuous feedback and
suggestions from its customers/ consumers as well as from
The market and try to solve it without any delay to establish its own good credibility.

The visibility of any product plays an important role in making the customer, aware about
it and is vital for the growth and development of any product.

For their advertisement they can also introduce a brand ambassador, because most of the
consumers remember advertisement because of their brand ambassador.

A strong watch should be kept on distributors also, because in some cases they are found
to be cheating the retailers and affecting the goodwill of the BRAND.

51
Conclusion
During the course of the project I realized that the customer willingly answered the
closed end questions.
From the analysis of the data collected and from the experiences I have reached the
following conclusions:
 COKE is most popular amongst its users mainly because of its TASTE,
BRAND NAME, INNOVATIVENESS Thus it should focus on good taste so
that it can capture the major part of the market. But most of the consumers
prefer THUMSUP as their 1st preference, then COKE
 We come to the conclusion that visibility affects the sales of project in a very
special way. And in terms of the advertisements lays is lacking behind mostly
consumers remember the advertisement because of the frequency of add and
brand ambassadors, creativity.
 After acquiring a new customer, there is lot of importance of its retention
also. This can be done only by providing extra flavors and good taste.
 In today‟s scenario, customer is the king because he has got various choices
around him. If you are not capable of providing him the desired result he will
definitely switch over to the other provider. Therefore to survive in this
cutthroat competition, you need to be the best. Customer is no more loyal in
today‟s scenario, so you need to be always on your toes.

We feel that there is cut-throat competition between COKE,PEPSI,THUMSUP so to


be on top of mind of the customers they need to do something outstanding every time.

52
Limitations of the Study

Some of the respondents refused to fill the questionnaires.

The responses may vary as some people did not want to come up with real answers.

The people were busy in their own work so they might not have given actual responses.

Limitation of time.

The survey is conducted only in few areas of Delhi, Ghaziabad; hence the results may
vary in other parts of the cities.

Small sample size.

And like any other research the limitation of personal bias of respondents limits the scope
of the study.

The findings are based on the survey conducted in the month of January to March; the results
may vary in other months.

53
Bibliography

Text Books:
 Kotler Philip, “Marketing Management”, Pearson Education.
 Beri G.C, “Marketing Research”, Third Edition.
 Cooper Donald R. & Shindler Pamela S, “Business Research Methods”
 Tata McGraw-Hill Edition Eighth.
 Schiffman Leon G. & Kaunk Leslie Lazar, “Consumer Behavior” Pearson
Education, Eighth Edition.

Magazines and Journals


 4 P’s of marketing
 Economic Times
 Brand Eq uity

Websites
www.Coca cola.com
www.pepsi.com
www.indiainfo line.com
http://www.thecoca-colacompany.com

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Questionnaire
1. Name:
2. Age:
15-20  21-35 
36-45  46-55 
55 and above 
3. Gender: M/F
4. Occupation:
Professional 
Businessman 
Service 
Student 
Any other 
5. Do you drink Soft Drinks? Yes / No
6. If yes, which Soft Drinks? Coke/Pepsi
7. Carbonated Drinks / Fruit Drinks
8. Which cola drink do you prefer most?
Coke 
Pepsi 
7up 
Sprite 
Fanta 
Mazza 
Thumsup 
9. Which packages do u prefer most ?
Pet bottle 
Glass bottle 
10. About Cola drink what do you like the most?(PLEASE RATE THEM from 1-6)
Brand name 
Taste 
Easy availability 
Packaging 
Price 
Brand ambassador 
Any other (please specify) 
11. Have you seen any advertisement of ANY Cola drinks?
Yes  No 

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12. Advertisement of which Cola drinks do you remembers the most?
Coke 
Pepsi 
7up 
Sprite 
Fanta 
Mazza 
Thumsup 

13. What attracted you in the advertisement?( PLEASE RATE THEM from 1-3)
Creativity 
Brand ambassador 
Idea of delivering the message 
Frequency of add 
Logical reason 

14. Have you decided to purchase any connection after watching the advertisement?
Yes  No 

15. What is your opinion of the brand?


o Excellent
o Good
o Fair
o Poor

16. What is your monthly consumption?

17. Would you visit another store X, if you do not find it at your store?

18. Any suggestions


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