PROJECT REPORT ON

ADVERTISING ETHICS AND VIEWERS PERCEPTION TOWARDS ADVERTISEMENTS OF COCA COLA

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) G.G.S. INDRAPRASTHA UNIVERSITY, DELHI

PROJECT GUIDE Dr.AJAY RATHORE

SUBMITTED BY: ANAS UL HAQ 0691701707 BBA 6th Sem(M)

SESSION 2007-2010

TECNIA INSTITUTE OF ADVANCED STUDIES

2A-2B, PSP INSTITUTIONAL AREA, MADHUBAN CHOWK ROHINI, NEW DELHI

DECLARATION
I Anas ul haq, Enrollment no. 0691701707, Class BBA 5th Sem of The Tecnia Institute Of Advanced Studies, Delhi hereby declare that the Project Report entitled ADVERTISING ETHICS AND VIEWERS PERCEPTION TOWARDS ADVERTISEMENTS OF COCA COLA is an original work & the same has not been submitted to any other Institute for the award of any other degree. A seminar presentation of the Project Report was made on 30th May, 2009 & the suggestions as approved by the Faculty were duly incorporated.

Signature of the Researcher

Countersigned Signature of Faculty Guide

ACKNOWLEDGEMENT

I am highly indebted to my project mentor Dr.Ajay Rathore for his continuous support, supervision, motivation and guidance throughout the tenure of my project in spite of his hectic schedule who truly remained driving spirit in my project and his 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.

PREFACE
Advertising 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 consumers preferences for COCA COLA. 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 establish its guiding role in the market of Delhi and throughout 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 discusses the various ethical factors that the Advertising Division of COCA COLA has to keep in mind specially while preparing a plan for marketing its product or services. A detailed description along with analysis of surveyed data is being presented in this report.

TABLE OF CONTENTS

Ch-1 A B C D E

RESEARCH PROBLEM AND PURPOSE Company Profile Industry Profile Introduction Scope of Study Objectives of Study

Ch-2 Ch-3

REVIEW OF LITERATURE RESEARCH METHODOLOGY LIMITATIONS

Ch-4

RESULT DATA ANALYSIS DISCUSSION & FINDING OF THE STUDY

Ch-5

CONCLUSION SUGGESTION AND RECOMMENDATIONS SUMMARY

Ch-6

QUESTIONNAIRE BIBLIOGRAPHY

COMPANY PROFILE

The Mission Statement of the Coca Cola Company

Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs: 1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to drink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen. The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and create economic value added by improving economic profit. The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customers business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market. There are nearly 6 million people in the world who are potential consumers of our companys product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.

COCA COLA INTERNATIONAL

HISTORY:
Coca-Cola Enterprises, established in 1986, 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 its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca -Cola for most of the United States from The Coca -Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split -adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca -Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Co mpany, and began a dramatic,

successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion

MANAGEMENT:
The hierarchy of Coca Cola Company is as follows.

Chairman Board of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

MARKET SHARE:
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE:

The following table can show the worldwide operating segments.

(Table) Unit case growth 10 year compound annual growth

Compan y Industry

5-year compound annual growth

Compan y Industry

2001 annual growth

Compan y Industry

Nonalcoholic drink 2002

All commercial Beverages 2002

Company share

Compan y share

Compan y per capita Income

6%

5%

5%

5%

4%

4%

18%

9%

70

This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic readyto-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are increasing their market day by day. The operation income earned by Coca Cola Company can be illustrated by the following pie chart. (Figure)

This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.

(Figure)
12 10 8 6 4 2 0 1971 1981 1991 2002
unit sale in billions

So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling

partners is a critical component of The Coca-Cola Company's ability to build and deliver leading brands.

In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.

MARKET SHARE BY AREA:

Coca Cola is the world-renowned soft drink and the company is currently operating through out the world. The world wide total is about 17.8 billion. The operation review according to the segments is as follows. Operation Review (2002 worldwide unit case volume by operating segment) NORTH AMERICA 30% LATIN AMERICA 25% EUROPE & MIDDLE EAST 22% ASIA AFRICA

17%

6%

NORTH AMERICA LATIN AMERICA EUROPE & MIDDLE EAST ASIA AFRICA

So the volume is least in the Africa and most in the North America. The data about the market share of this company area wise is given in the following table. The above table shows the geographical earning of the Coca Cola Company and from this data; we can find out that the customers of Coca Cola are increasing which is shown by the companys per capita income. Unit case equals 24 eight-ounce servings. The column, which shows the non-alcoholic beverages consist of commercially, sold beverages, as estimated by the Company based on available industry sources. The country column is derived from

The Company's unit case volume while the industry column includes nonalcoholic ready-to-drink beverages only, as estimated by the Company based on available industry sources.

(Table)

Country

Unit case growth

10 year 5-year compound compound annual annual growth growth

Compan y Industry Compan y Industry

2002 annual growth

Compan y Industry

Nonalcoholi c Drinks 2002

All commercial Beverages

2002

Compan y share

Compan y share

Company per capita Income

North America United States Latin America Argentin a Brazil Chile Mexico Europe & Middle East Eurasia France German y Great Britain Italy Middle East Spain Asia Africa

4 4 6 7 5 9 7 6

5 5 7 4 5 6 10 3

3 3 6 6 3 5 8 5

3 3 6 2 6 3 9 3

2 2 3 7 3 (2) 2 2

2 2 4 2 5 3 5 4

22 23 24 20 23 56 22 12

15 16 15 10 13 23 18 6

398 419 205 236 144 336 462 72

17 8 1 8 1 12 6 7 7

8 3 2 2 3 12 4 6 6

6 9 (1) 11 4 7 8 6 8

5 3 1 2 3 5 5 7 3

(14) 7 (6) 8 2 4 4 10 10

1 3 1 3 2 8 4 7 6

14 9 14 17 9 8 17 14 34

5 5 7 6 6 3 12 5 11

39 110 193 193 104 17 264 23 34

In Asian population, which is the satisfied customer of Coca Cola, is approximately 3.2 billion and the average consumer enjoys close to two servings of our products

each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 10 percent in 2002. With developing economies and populations, this region has strong long-term potential, and the company is building an exciting family of beverage brands in addition to expanding the popularity of our core brands, led by Coca-Cola. In China, for example, sales of Coca-Cola increased 6 percent. The total unit case sale of Coca Cola in Asia can be shown by the following pie chart. (Figure)

So the company is emphasizing more in this area and is trying to develop a strategy, which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest percentage, which is about 29%. Among others, India, India and Bangladesh are those countries where the average consumption is increasing day by day.

FINANCIAL REPORT:
This company is financially very strong. It is due to the strong finances, the company is still surviving the ups and down of the business world. The financial report of Coca Cola Company of the year 2008 and 2007 along with the percentage change is as follows. (Table) Year Ended December 31, (In millions except per share data, ratios and growth rates) 2008 2007 Percentage change 1% 45% 82% 82% 82% 15% 24% 6% 108% 12% 5% 2% 4%

Net operating revenues Operating income Net income Net income per share (basic) Net income per share (diluted) Net cash provided by operating activities Business reinvestment Dividends paid Share repurchase activity Free cash flow Return on capital Return on common equity Unit case sales (in billions) International operations North America operations Worldwide

20,092 5,352 3,969 1.601 1.601 4,110 (963) (1,791) (277) 3,147 26.6% 38.5% 12.5 5.3 17.8

19,889 3,691 2,177 0.882 0.882 3,585 (779) (1,685) (133) 2,806 16.2% 23.1% 11.9 5.2 17.1

2008 basic and diluted net income per share includes a non-cash gain of $.02 per share after taxes, which was recognized on the issuance of stock by Coca-Cola Enterprises Inc., one of the equity investors of this company. 2008 basic and diluted net income per share includes the following charges: $.24 per share after income taxes related to an organizational Realignment. $.19 per share after income taxes related to the Company's portion of charges recorded by the investors of the company. $.16 per share after income taxes related to the impairment of certain bottling, manufacturing and intangible assets. $.05 per share after income taxes related to the settlement terms of a discrimination lawsuit. $.01 per share after income taxes related to incremental marketing expenses in Central Europe.

These charges are partially offset by a gain of $.05 per share after income taxes related to the merger of Coca-Cola Beverages plc and Hellenic Bottling Company S.A. and $.04 per share after income taxes related to benefits from a tax rate reduction in Germany and from favorable tax planning strategies.

DIVIDEND AND CASH INVESTMENT PLAN:

The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends from Company stock in shares of The Coca-Cola Company. The Plan provides a convenient, economical and systematic method of acquiring additional shares of our common stock. All shareowners of record are eligible to participate. Shareowners also may purchase Company stock through voluntary cash investments of up to $125,000 per year. At year-end, 76 percent of the Company's shareowners of record were participants in the Plan. In 2008, shareowners invested $36 million in dividends and $31 million in cash in the Plan.

COMPANY STATISTICS:
The statistics of this company is impressive. Since it is operating through out the world that is why the number of employees and the bottling equipments is highest among the other bottling companies. There is a constant increase in every aspect when we compare the statistics of 2001 and the statistics of 2002. This is because; Coca Cola Company is increasing its volume day by day. The expansion of this company, which shows the success of Coca Cola brands, results in the percentage change in the statistics of the two years. The statistics is as follows. (Table) 2008 Equivalent cases Bottle and cans Fountain Employees Vehicles Cold drink equipments Facilities Production only Distribution Combination Total Percent of North America population coverage Number of States of Operation Bottle and can equivalent case package distribution Cans Non-refillable bottles Refillable bottles Capital structure Net debt to total capital ratio EBITDA interest coverage Weighted average cost of debt Key Statistics Constant territory bottle and can volume growth Bottle and can net revenues per case change Bottle and can cost of sales per physical case change Reported EBITDA (in billions) Reported EBITDA change Capital expenditures( in billions) %-age of net operating revenues Coverage of North American Can/bottle volume 4.2 billion 87% 13% 72,000 54,000 2.4 million 25 385 53 463 80% 46 44% 52% 4% 63% 3 6.3% 3% Flat 1 $1.95 (18)% $0.97 6% 83% 2007 3.8 billion 87% 13% 67,000 52,000 2.3 million 25 361 50 436 72% 46 45% 51% 4% 59% 3 6.8% % 2% % $2.39 9% $1.18 8% 74%

EBITDA is the Earnings before interest, amortization, and other non-operating items.

taxes,

depreciation,

and

Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable securities. Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard unit of measure defined as 24 eight ounce servings or 192 ounces per equivalent case sold by Coca Cola Enterprises.

PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use through out the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country.

Major brands of coca cola

Coke Sprite Fanta Diet coke Coke classic

The over all volume of this company is as follows.

(Figure)

The commitment of the company is to devote resources to water only in markets where it expects profitable growth. This strategy has paid dividends. The company has successfully applied its approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a strong network of bottling partners through out the United States, Dasani became the nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purified water brand. This year, Coca-Cola Company also successfully energized a major piece of its beverage strategywater. By the end of 2001, its bottled water volume exceeded 570 million unit cases, making it the second biggest contributor to the growth of the company after carbonated soft drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit cases for the year. In 2001and 2002, the company has also made good progress in coffees and teas. Beverage Partners Worldwide, the renewed and strengthened marketing partnership with Nestl S.A., began operations in 2001. This partnership combines Nestl's knowledge in life science, research and development with the expertise of Coca Cola Company in brand building and distribution. At the same time, the company grew Georgia coffee in Japan by 3 percent through award-winning marketing in a category that was flat for the year. Also in Japan where The Coca-Cola Company is the leader in the total tea category, the secondlargest category in the non-alcoholic ready-to-drink segmentit launched Marocha Green Tea. With sales of 46 million unit cases for the year, Marocha Green Tea is the fastest-growing product in the fastest-growing category: green tea. The

popularity of Marocha is also recognized by the industry with a leading trade journal naming Marocha the most popular new food and beverage product of the year.

Know the most recognized word on the planet after OK!

INDUSTRY PROFILE
The Soft Drink Industry (SIC 111) consists of establishments primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral waters and concentrates and syrups for the manufacture of carbonated beverages. Establishments primarily engaged in manufacturing fruit juices and non-carbonated fruit drinks are classified in Canned and Preserved Fruit and Vegetable Industry (SIC 1031). Principal activities and products:

Aerated waters; Carbonated beverages; Mineral and spring waters; Soft drink concentrates and syrup; and Soft drink preparation carbonating.

NAICS 31211 Soft Drink and Ice Manufacturing: Establishments primarily engaged in manufacturing soft drinks, ice or bottled water, including that which is naturally carbonated. Water-bottling establishments in this industry purify the water before bottling it.

Fruit drinks (except juice), manufacturing Ice (except dry ice), manufacturing

Iced tea, bottling or canning Soft drinks, manufacturing Water, purifying and bottling

THE SOFT DRINK MARKET:

The soft drink markets can be segmented on the basis of place of consumption or on the basis of type of products. The segmentation on the basis of place of consumption divides the market into two parts:

On-premise-80% of the consumption of soft drinks is on premise i.e. restaurants, railways stations, cinema etc. At-home- the rest 20% of the market compromises of the soft drink purchased for consumption at home.

The market can also be segmented on the basis of types of products into cola products and non-cola products.

Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, and diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: o Orange o Cloudy Lime o Clear Lime o Mango Orange flavor based soft drinks constitute around 17% of the market. The segment is largely dominated by national brands like Fanta of Coca Cola and Mirinda Orange of PepsiCo, which collectively form15% of the market rest of the market is in hands of smaller brands like Crush (earlier of Cadbury Schweppes and now of coca Cola), Gold Spot etc. Cloudy Lime flavor constitutes 14% of the market and is largely dominated by Limca of coca cola and Mirinda Lemon of PepsiCo. Limca is the market leader with around 70-75% of the market followed by Mirinda Lemon.

i.

ii.

iii.

iv.

Clear Lime: this segment of the market witnessed good growth initially with all the players launching their brands in the segment. But now the growth in the segment has slowed down. The brands available in this segment are 7 Up of Pepsi, Sprite of Coca Cola and Canada Dry (earlier of Cadbury Schweppes and now of Coca cola). The segment constitutes 3% of the total soft drinks market. Mango: this flavor segment constitutes 2% of the total soft drinks market and it directly competes with mango based fruit drinks like Frooti. The leading brands in this segment are: Maaza of Coca Cola, Mangola (Earlier of Dukes now of PepsiCo) and Slice of PepsiCo.

There is very thin line of difference between the clear and cloudy lime. The most obvious feature is that clear lime has to be bottled in green bottles as sunlight harms the drink and changes the taste. There are some small local brand sat city or regional levels. Most of these are either merging with the two big players (Coca-Cola and Pepsi) or they command a very small less than 3%, of the total market in their respective areas.

MARKET SIZE AND GROWTH:

Soft drink market size is around270mn cases (6480mn bottles). The market, which was witnessing 5-6% growth in the early90s and even slower growth at around 2-3% in late 80s. Presently the market growth has slowed down with growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for FY01 is expected to be 7000 million bottles. The market growth of 22% till last year has got stifled due to high excise duty of 40% leading to higher price of the end product.

Market Characteristics: The soft drink market is highly skewed in terms of place of consumption, in terms of regional distribution & soft drink flavors as well as in terms of SKUs. While 80% of the consumption is impulse based outside home 20% comes from consumption at home. This trend is slowly changing with increase in occasion led sales. Changing life style, increasing urbanization and impact of liberalization has slowly and gradually started moving the market from impulse led to occasion led and home refrigeration led consumption. The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango-flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage market. In terms of SKUs the market is skewed towards 300ml, which constitutes around 80-85% of the market, rest is in the form of other

pack sizes. But with increasing occasion led and home refrigeration led consumption the sales of bigger SKUs like more than 1 Litre pack sizes has increased this has led to increase in contribution from PET bottle sales to 15% of the total turnover in FY00. And most of these PET bottle sales, up to 75% are in urban areas.

Another skew ness is in terms of the time of the year when the consumption takes place. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days, which contributes more than 50% of the total yearly sales. Another peculiar feature of the market is that of positioning and targeting of various brands. While Cola brand of Coke is targeted at teenagers and is positioned as refreshment for mind and body. Its Thumps Up brand is targeted at people in age group of 20-29year positioned as thing for adventure-loving, successful and macho person. Fanta is targeted at consumers inpre-teen age group and is positioned as fun thing. Sprite is targeted towards teenagers positioned to convince them to follow their instincts and not to fall for false pretence. Maaza is positioned as family drink while diet coke is targeted towards health and figures conscious people especially teenage girls. The distribution network of Coca Cola had 6.5 lakh outlets across the country in FY00 which the company is planning to increase to 8lakhs by FY01.On the other hand PepsiCo's distribution network had 6 lakh outlets across the country during FY00 which it is planning to increase to 7.5 Lakh by FY01.

Market Share (in %): Brand Name Pepsi Coca Cola Market Share (in %) 41 57 Market Share (in %) 49 48

CONSUMER HABITS AND PRACITCE:

Soft drinks come under the category of products purchased in impulse. Though the market is marred by brand loyalty the purchase decision itself is a low involvement decision. This attitude of impulse buying is slowly changing to occasion-led buying and also to some extent to consumption through home refrigeration particularly in urban areas. The market is slowly moving from non alcoholic carbonated drinks to fruit based drinks and also to plain bottled water due to lower price and ready availability.

 Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling and not having access to hygienic water reach out for soft drink. This accounts for a large part of the sales. Brand awareness plays a crucial role in purchase decisions. Consumers prefer convenient and economy products. Availability in the chilled form affects the purchase decision. This has made both the companies to push its sales and to increase its retail distribution by offering Visi Coolers to retailers. While there is no aversion to consumption of soft drinks by any age group, the main consumers of this market are people in the age group of 30 and below. Product differentiation is very low, as all the products taste the same. But brand loyalty is high in the case of kids and people in the age group of 20-30 yrs. Consumers are sensitive to the outlay where the purchase of beverages is concerned. Hence the market is price sensitive. Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea, coffee or other drinks like sherbet and squashes. Per capita consumption in India is among lowest in the world at 5 bottles per annum compared to 80 bottles in Thailand and 800 bottles in USA. While 75% of the PET bottle consumption is in urban areas the 200ml bottles sales are higher in rural areas

RETAILERS PERCEPTION:
A survey was conducted to study the retailers views of the present market, future trend and the consumer behavior patterns. The findings of the survey are as follows:

Retailers stated that the consumers are loyal to the particular segment of the soft drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each segment is concerned, it is not very significant.

43% of the retailers surveyed told that in soft drinks advertising is the key component in driving sales. While 32% stated promotional schemes and 20% brand loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is concerned, the retailer push becomes a critical issue. They usually sell the product in which they get the maximum benefit. For this, the companies try to offer them higher margins.

While distributors get margin of Rs8-9 per crate (1 crate= 24 bottles) at 3-4% of MRP, retailers are given a margin of 10-12% of MRP. The retailers are not happy with this, as the cost of refrigeration is very high for soft drinks. To over come this problem the companies are offering visi-coolers schemes to their main retailers.

COLA WARS:

Coca-Cola controlled the Indian market until 1977, when the Janata Party beat the Congress Party of then Prime Minister Indira Gandhi. To punish Coca-Cola's principal bottler, a Congress Party stalwart and longtime Gandhi supporter, the Janata government demanded that

Coca-Cola transfer its syrup formula to an Indian subsidiary (Chakravarty, 43). Coca-Cola balked and withdrew from the country. India, now left without both Coca-Cola and Pepsi, became a protected market. In the meantime, India's two largest 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 (Chakravarty, 43). Some analysts reason that the Indian market may be more lucrative than the Chinese market. India has 850 million potential customers, 150 million 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 on Indian partners. In the end, all parties involved seem to come out ahead: Pepsi gains access to a potentially enormous market; Indian bottlers will get to serve a market that is expanding rapidly because of competition; and the Indian consumer benefits from the competition from abroad and will pay lower prices. Even before the first bottle of Pepsi hit the shelves, local soft drink manufacturers increased the size of their bottles by 25% without raising costs. The new battleground for the cola wars is in the developing markets of Eastern Europe (Russia, Romania, The Czech Republic, Hungary, and Poland), Mexico, China, Saudi Arabia, and India. With Coca-Cola's and Pepsi's investments in these countries, not only will they increase their sales worldwide, but they will also help to build up these economies. These long-term commitments by both companies will raise the level of competition and efficiency, and at the same time, bring value to the distribution and production systems of these countries. Many issues need to be overcome before a company can begin to produce its goods in a foreign country. These issues include political, social, economic, operational, and environmental topics, which must be addressed. When companies like Coca-Cola and Pepsi effectively analyze and solve these problems to everyone's liking, new

foreign markets can translate into lucrative opportunities in the long run. The ongoing cola war between global rivals Pepsi and Coca-Cola has
taken a weird twist in India with the former dragging the latter to court. The charge: Coca-Cola has snatched employees, bottlers, and agents, all of whom are bound to Pepsi by a contract. Pepsi has charged Coke with having entered into a conspiracy to disrupt its business operations by inducing key employees and associates to break existing contracts illegally. Pepsi has sought a permanent injunction and an ex parte order against coke, restraining it from taking away Pepsi's employees and business associates. Pepsi has also reserved the right to seek financial damages from Coke at a later date if necessary. Pepsi has claimed that a dozen middle-level managers and three territory managers broke their contracts with Pepsi to join Coke in recent months, while during the last year and half, seven managers quit Pepsi to join Coca-Cola. Justice C M Nayar of the Delhi high court on April 17 issued notices and summons to Coca-Cola and 15 others for May 6. However, Justice Nayar refused to grant the ex parte injunction sought by Pepsi India to stop the alleged inducements by Coke in offering employment to Pepsi's employees while the suit was pending in court. On behalf of Pepsi, Ashok Desai and Arun Jaitley contended that Coca-Cola had been "rattled by the huge success of Pepsi in India entered into a conspiracy during the last six months to cause loss and damage to Pepsi's business interests by adopting unfair and illegal means." It added that Coca-Cola had approached many key managers and had successfully lured a commercial manager of its bottling business Gaurav Duggal, and a manager in Surat Sailesh Joshi, besides others. Pepsi charged that while initially these approaches were sporadic, over the last six months it is clear that Coca-Cola has changed its strategy and has decided to consciously target and approach key employees of Pepsi at various locations in India. The company has alleged that in most cases, the employees have not been given time to adhere to the 90-day notice period and the one-year confidentiality agreement. The latter deal bars employees joining its rivals for at least a year. Desai claimed Coke's actions would directly harm the business interests of Pepsi, which had invested over $300 million in the country in establishing business infrastructure.

In its defense, Coke is expected to seek relief in the Indian Constitution, which states that there can be no restriction on the movement of labor. Besides, any effort by a company to restrict its employees from joining other companies might fall foul of the Monopolies and Restrictive Trade Practices Act as an unfair trade practice. Pepsi has cited the instance of Coke snapping up cricketer Javagal Srinath in spite of the latter signing a contract with Pepsi's sports consultant, 21st Century Media. However, media reports, quoting sources, said that Srinath's contract had been only in the verbal stage.

Similarly, Pepsi has charged Coke with inducing the Board of Control for Cricket in India to give the sponsorship of the recently concluded Pepsi Triangular Cricket Series to coke, as acknowledged in the BCCI submission before the Bombay high court, even while a contract was signed with Pepsi. Pepsi has listed the case of Coke trying to induce its music consultant DNA Networks Private Ltd, which organized the Yanni show, to snap its ties with Pepsi and join Coke. Incidentally, in results announced for the first three months of the year, Pepsi has swept Coca-Cola aside. Pepsi has reported a growth of 27 per cent compared to Coke's 21 per cent during the same period. In the first three months of last year, Pepsi grew by 18 per cent only. Coca-Cola India chief executive Donald Short had announced that Coke would grow by at least 20 per cent for the whole of 1998. Coca-Cola, along with the Parle brands it acquired when it came into India -- Thums Up, Limca, and Gold Spot -- continue to dominate India with a 55 per cent market share to Pepsi's 43 per cent. But in the cola segment, Coke comes a poor third after Thums Up and Pepsi. If summer is at its peak, can a cola war over market shares be far behind? Interestingly, its the same saga, yet again, with each of the two soft drink majors Pepsi Foods Ltd and Coca-Cola India claiming market leadership based on different surveys. Based on an ORG-MARG survey, Coke, on Thursday, claimed an overall gain of one per cent market share to reach 58 per cent market share of the carbonated soft drink (CSD) market for the quarter ended June 2002. However, contesting Cokes claim, Pepsi cites an IMRB study which says that while Pepsi, too, has increased one share point in the CSD category to reach 48 per cent, Cokes market share stands only at 50 per cent in

June

2002

rather

than

the

claimed

58

per

cent.

Announcing its results for the second quarter ended June 2002, Coca-Cola India, on Thursday, claimed a 26 per cent growth in the CSD sales volume against the same period of the previous year. The main growth drivers, according to Mr. Sanjiv Gupta, deputy president, Coca-Cola India, were its rural initiatives for CSDs and driving affordability through lower price points and strengthening distribution. During the period under review, Coke launched 200 ml glass bottles nationally at Rs 5 and Rs 6. The business model was developed to tap the rural market and the low-income groups. In the packaged drinking water segment too, Coke claims to have consolidated its position in the market by raising its brand Kinleys market share to 31 per cent from 26.7 per cent in the quarter ended March 02. Meanwhile, Pepsi, countering Cokes claims, also announced growth rates for the quarter ended June 02 based on a revised retail sales audit by IMRB, which now covers 54 cities instead of the earlier 24 cities. A Pepsi release on Thursday said it reported a record growth in its beverages segment in the quarter ended June 2002, and has increased one share point in the CSD category. While the growth is led by CSD, which has grown a high double digit, the focus on bottled water has reaped rich dividends on an unprecedented growth of 150 per cent, the company said. Aquafina, which is still not fully national, is the fastest growing bottled water brand in the country, claimed Ms Vibha Rishi, executive director (marketing), Pepsi Foods Pvt. Ltd. According to Ms Rishi the growth has been driven by an excellent consumer response to Pepsi-Aha which has delivered incremental sales. The newly launched variant of flagship brand Pepsi is on way to becoming a Rs 100-crore brand by the end of the current year and had already notched up sales worth Rs 70 crore, a Pepsi spokesperson said.

INTRODUCTION OF THE PROJECT

Advertising is one of the most powerful tools which enhances communication by connecting the company with the customers. Moral and ethical standards were proposed to restrict the range of products, services and practices that can be advertised. Nevertheless the problem still persists. One o f the questions discussed while analyzing the ethical aspects of advertising is the use of fear appeals and threat to popularize a certain product, concept etc., or to boost up the sales. The idea of using fear to advertise a certain product is viewed as unethical if the solutions that are advertised cannot eliminate the threat presented. This holds true as long as advertisers show the consequences o f not paying heed to the recommendations offered in the advertisement. Furthermore, using fear appeals and threats is considered unethical as it may create unnecessary anxiety among potential customers. However, some people support the idea o f using fear for marketing purposes. They claim that such advertisements reflect the norms o f a certain society. The importance of advertising is "steadily on the increase in modern society." This observation, made by the Pontifical Council a quarter century ago as part of an overview of the state of communications, is even more true now. Just as the media of social communication themselves have enormous influence everywhere, so advertising, using media as its vehicle, is a pervasive, powerful force shaping attitudes and behavior in today's world. In today's society, advertising has a profound impact on how people understand life, the world and themselves, especially in regard to their values and their ways of choosing and behaving. These are matters about which the Church is and must be deeply and sincerely concerned. Advertising 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.

Advertisers are selective about the values and attitudes to be fostered and encouraged, promoting some while ignoring others. This selectivity gives the lie to the notion that advertising does no more than reflect the surrounding culture. For example, the absence from advertising of certain racial and ethnic groups in some multi-racial or multi-ethnic societies can help to create problems of image and identity, especially among those neglected, and the almost inevitable impression in commercial advertising that an abundance of possessions leads to happiness and fulfillment can be both misleading and frustrating. Advertising also has an indirect but powerful impact on society through its influence on media. Many publications and broadcasting operations depend on advertising revenue for survival. This often is true of religious media as well as commercial media. For their part, advertisers naturally seek to reach audiences; and the media, striving to deliver audiences to advertisers, must shape their content so to attract audiences of the size and demographic composition sought. This economic dependency of media and the power it confers upon advertisers carries with it serious responsibilities for both. It is rightly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and I came to know about how a consumer chooses among a varied range of products available to him. This survey report introduces study of consumers preferences for COCA COLA. 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 establish its guiding role in the market of Delhi and throughout 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. The subject of my study is market survey of Advertising Ethics and Viewers Perception towards advertisements of Coca Cola, which has slowly but steadily evolved, from a beginner to a corporate giant earning laurels and kudos throughout.

The report contains first of all brief introduction about the company and the industry along with the objective and significance of the report. Finally there comes data presentation and analysis in the end of my report. I also put forward some of my suggestion hoping that they help Coca Cola Co. move a step forward to being the very best. This study report also

discusses the various ethical factors that the Advertising Division of COCA COLA has to keep in mind specially while preparing a plan for marketing its product or services. A detailed description along with analysis of surveyed data is being presented in this report.

SCOPE OF THE STUDY

The scope of the Project Report is1) To study the ethical values in advertisements of Coca Cola Company. 2) Impact of advertisements on the customers. 3) Viewers Perception of advertisements of Coca Cola.

OBJECTIVES

1) To observe the common issues related to ethical advertising. 2) To examine the impact of advertising on the final consumer. 3) To find out the image that he carries of the product. 4) To evaluate customers attitudes and perceptions related to the ethical aspects of advertising. 5) To examine a brief profile of the industry and identify the ethical issues that can be tracked in advertising of the product.

Review of Literature
At the core of the beverage industry is the carbonated soft-drink category. Soft drink holds 51% (majority of market share) of the total beverage market. Soft drink can be further divided into carbonated drinks (Coca-cola, Pepsi, Thumbs up, Diet coke, Diet Pepsi etc.) and non-carbonated drinks (Orange, Cloudy lime, Clear lime and Mango). The dominant players in soft drink market are Coca Cola and Pepsi, which own virtually all of the North American markets most widely distributed and best-known brands. They are dominant in world markets as well. These companies products occupy large portions of any supermarkets shelf space, often covering more territory than real food categories like dairy products, meat etc. Coca-Cola, started out as an insignificant one-man business and over the last one hundred and ten years has grown into one of the largest companies in the world. Dr. John Pemberton, an Atlanta pharmacist, invented Coca-Cola. One in every two cola and one in every three soft drinks is a Coca-Cola product. The best-known trademark in the world is sold in about one hundred and forty countries to 5.8 billion people in eighty different languages. This is why Coca-Cola is the largest soft drink company in the world. For more than 65 years, Coca-Cola has been a sponsor of the Olympics. Advertisements for Coca Cola started on the radio in the 1930s and on the television in 1950. Currently Coca-Cola is advertised on over five hundred TV channels around the world. Product advertising for liquor and cigarette companies is banned in India since 1995 by Cable Television Network (Regulation) Act. This ban is now likely to be extended to advertising of extended brands. The very purpose of banning liquor advertisements is defeated by surrogate advertising. A surrogate advertisements is one in which a different product is promoted using an already established brand name. Such advertisements or sponsorships help in contribute to brand recall. The different product shown in the advertisement is called the Surrogate. It could either resemble the original product or could be a different product altogether, but using the established brand of the original product. In India, the trend of surrogate advertisement gathered momentum with the Cable TV Network Regulation Act, which prohibits tobacco and liquor advertisements on TV channels.

Due to the ban, soft-drink companies focused more on promotions for brand building. The ban on advertising of alcohol beverage products has severely handicapped communication with consumers. Companies with cola brands are not advertising cola products; instead they have extended the equity of their brands into other fields. However as the TV was the most effective medium of advertising, surrogate advertising on TV became popular. In the mean time, some producers entered new segments under the cola brand or advertised these products under cola brand. The surrogate advertisements from liquor companies intensified further through sponsorships of movies, music shows, and other programs and attracting youth. In late 2001, the broadcasters began airing socially responsible advertisements sponsored by soft-drink companies. By early 2002, surrogate advertising of cola brands had intensified like never before on satellite TV channels. Keeping this thing in mind I decided to conduct a research to find out whether really this surrogate ad helps to recall the original brand. Survey was done comprising of 50 respondents of different age group, different educational level and different class of society.

Coca-Cola's advertising has significantly affected Western culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-and-white suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common. Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915. Before Santa Claus, Coca-Cola relied on images of smartly-dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman. 1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola". In 1971, a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing," produced by Billy Davis, became a hit single. Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born.

Coca-Cola Cricket
Cricket the most sought after; watched & played game in India .the game of cricket has been owned by various brands in the industry for the promotion of their products over a period of time. It has ranged from tobacco to lubricants to communication companies to banks to airlines & lately to the beverage industry. The competition has become tougher & tougher as the time has progressed. Coca-Cola signed a sponsorship agreement with eight of Indias National cricket players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it consumers & masses invested in the opportunity and launched a massive campaign on mass media showing all these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company developed three TV commercials & four testimonial ads with the player & ran them on the national net work during various cricket matches. These bold steps taken by the Coca-Cola marketing unit acclaimed them many acknowledgements across the board. This campaign helped Coca-Cola to establish its association with the game & the player.

Coca-Cola Diwali Campaign

A very special occasion for the people of India, Diwali saw another very special Coca-Colas promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off promotion. The emphasis on enjoying Coca-Cola at Diwali with friends & family.

RESEARCH METHODOLOGY
A detailed survey of consumers was carried out to find out their preferences for COCA COLA the details of the methodology are stated below: AREA : DELHI

Type of Research

Exploratory Research Descriptive research

Research Question values of Coca Cola Sampling technique Sample Size Samplings Areas Primary Data

Consumer perception and ethical

: : : :

Convenience sampling 100 Delhi Responses through questionnaires Conducted personal interviews with the respondents .

Secondary Data

Websites . News papers

Analytical Tools

Pie-Chart Column-Chart Scatter-Chart Radar-chart Surface-Chart Cylinder-Chart Cone-Chart

LIMITATIONS OF THE STUDY

Some of the respondents were not co-operative to fill the questionnaires. The responses may vary as some people did not want to come up with real answers. Limitation of time. The survey is conducted only in Delhi hence the results may vary in other parts in the country. Small sample size. And like any other research the limitation of personal bias of respondents limits the scope of the study.

RESULT AND DATA ANALYSIS

Q1- GENDER- MALE

FEMALE

Q2- Which age group you belong to? a) 5-18 b) 18-30 c) 30-50 d) 50 and above.

GENDER

Female 40% Male 60%

Age
Age 41 32 24

3 0-18 18-30 30-50 50 & above

Q3- What is your approx. Family Income? a) Less than 10,000/b) 10,000 1,00,000/c) 1,00,000 5,00,000/d) 5,00,000 and above.

Income
60 50 40 30 20 10 0 Less than 10,000 10,000-1,00,000 1Lakh -5Lakh Income 5Lakh & Above

Interpretation Majority of the respondents belong to the upper middle class group

Q4- What is your Educational level? a) Under Graduate. b) Graduate. c) Post Graduate.

Education Level

Post-Graduate 20% Under Graduate 48% Graduate 32%

Interpretation Healthy mix of respondents belonging to different levels of education

Q5- How did you hear about your favorite soft drink? Television Radio Newspaper

Others (please specify)

Medium
2% 2% 6%

TV Radio Newspaper 90% Internet

Interpretation 90% of respondents rely on TV for their source of entertainment and has a wide impact Impact of Radio and Newspaper is relatively lower Internet is favored by 6%

Q6- Which is your favorite soft-drink? Coca Cola Pepsi Thumbs up Other

40 35 30 25 20 15 10 5 0 Coca Cola 32

38

14

16

Pepsi

Thumbs up Favorite Drink

Others

Interpretation

32% respondents prefer Coke 38% said Pepsi 14% said Thumbs up

Q7- How important are the following aspects in a soft drinks? (RATE THEM from 1-6) BRAND NAME TASTE EASY AVAILABILITY PACKAGING PRICE PROMOTION ANY OTHER (PLEASE SPECIFY)

Interpretation Brand Name of the product is given a rating of 4 out of 6 by the majority of respondents Taste has been given full 6 points Price and Easy Availability get 5 points each Packaging gets 4 And lastly Promotion is given a relatively high rating of 5 which stresses the importance of advertisements

Q8- Have you seen advertisements of Coca Cola? 1) Yes 2) No

Advertisement
Yes No

3%

97%

Interpretation Overwhelming majority of 97% are aware of Coca Cola advertisements and can give valuable feedback

Q9- What attracted you the most in the advertisement? CREATIVITY BRAND AMBASSADOR IDEA OF DELIVERING THE MESSAGE FREQUENCY OF ADD LOGICAL REASON

58 60 50 40 30 20 10 0 Creativity Brand Ambassador Delivery of Message . Frequency of Adv Logical Reason 12 13 8 19

Interpretation Brand Ambassador had a huge impact while advertising on the majority of respondents (58%) The 2nd most important aspect was the frequency of the advert (19%) Delivery of the message, Creativity and Logical reason had relatively less impact of 13%, 12% and 8% respectively

Q10- Do you feel T.V advertisements influence purchase decision?

Yes

No

Not Always

Not Always 13% No 9%

Yes 78%

Interpretation 78% of the people said TV adverts influence their purchase decision. 13% agreed partly whereas 9% rejected this notion completely.

Q11- Do you think companies should be forced to follow prevalent ethical norms while planning their advertisements? Ofcourse Preferably Not necessarily

.
Not necessarily 11%

Ofcourse 31%

Preferably 58%

Interpretation 31% of the respondents feel the companies should be forced to follow ethical norms while advertising 58% feel it is preferable but the ultimate decision lies on them 11% feel it not necessary to interfere in advertising hinting that buyer is the best judge

Q12- Do Coca Cola ads cross over ethical values while promoting their products? Yes Plz commentNo

.
Yes 11%

No 89%

Interpretation Majority of the respondents(89%) agree that Coca Cola adverts do not cross over ethical values.

Q13- If any, what would you say be reason as to why these ads are considered unethical? 1) 2) 3) 4) 5) 6) Deceptive Vulgarity Use of Taboo Humor Immoral Threatening Others

25 19 20 15 10 5 0 Deceptive Vulgar 11

23 17

8 2

Use of Taboo Humor

Immoral

Threatening

Others

Reason

Interpretation 19% feel that the advertisements are deceptive 11% feel they are vulgar 23% felt that they used taboo humor 17% felt that the advertisements were outright immoral 8% felt that they were threatening

Q14- Finally, who is the your favourite choice to be Brand Ambassador of Coca Cola? Amir Khan Imran Khan Aishwarya Rai Other

60 50 40 30 20 10 0 Amir Khan Imran Khan Aishwarya Rai Others Series 1

Interpretation Amir Khan is still the favourite Brand Ambassador(58%) Aishwarya Rai(21%) is a little ahead of Imran Khan at 17%

FINDINGS

The findings of my Project Report and Survey are as follows Majority of the respondents belong to the upper middle class group 95% of respondents rely on TV for their source of entertainment and has a wide impact. Impact of Radio and Newspaper is relatively lower. Overwhelming majority of 97% are aware of Coca Cola advertisements and gave valuable feedback Out of a scale of 6 Brand Name was rated 5, Taste was rated 6, Easy Availability & Promotion have been rated 4 and lastly Price and Packaging were rated 3. Brand Ambassador had a huge impact while advertising on the majority of respondents (58%). The 2nd most important aspect was the frequency of the advert (19%). Delivery of the message, Creativity and Logical reason had relatively less impact of 13%, 12% and 8% respectively 78% of the people said TV adverts influence their purchase decision. 13% agreed partly whereas 9% rejected this notion completely. 31% of the respondents feel the companies should be forced to follow ethical norms while advertising. 58% feel it is preferable but the ultimate decision lies on them. 11% feel it not necessary to interfere in advertising hinting that buyer is the best judge 11% feel that Coca Cola crosses ethical boundaries of our society while advertising their product whereas 89% feel otherwise and are satisfied with the content of advertisements of Coca Cola. 19% feel that the advertisements are deceptive, 11% feel they are vulgar, 23% felt that they used taboo humor, 17% felt that the advertisements were outright immoral, 8% felt that they were threatening.

RECOMMENDATIONS

The indispensable guarantors of ethically correct behavior by the advertising industry are the well formed and responsible consciences of advertising professionals themselves: consciences sensitive to their duty not merely to serve the interests of those who commission and finance their work but also to respect and uphold the rights and interests of their audiences and to serve the common good. Voluntary ethical codes are one such source of support. These already exist in a number of places. Welcome as they are, though, they are only as effective as the willingness of advertisers to comply strictly with them. "It is up to the directors and managers of the media which carry advertising to make known to the public, to subscribe to and to apply the codes of professional ethics which already have been opportunely established so as to have the cooperation of the public in making these codes still better and in enforcing their observance." We emphasize the importance of public involvement. Representatives of the public should participate in the formulation, application and periodic updating of ethical codes. The public representatives should include ethicists and church people, as well as representatives of consumer groups. Individuals do well to organize themselves into such groups in order to protect their interests in relation to commercial interests. Public authorities also have a role to play. On the one hand, government should not seek to control and dictate policy to the advertising industry, any more than to other sectors of the communications media. On the other hand, the regulation of advertising content and practice, already existing in many places, can and should extend beyond banning false advertising, narrowly defined. "By promulgating laws and overseeing their application, public authorities should ensure that ?public morality and social progress are not gravely endangered' through misuse of the media. For example, government regulations should address such questions as the quantity of advertising, especially in broadcast media, as well as the content of advertising directed at

groups particularly vulnerable to exploitation, such as children and old people. Political advertising also seems an appropriate area for regulation: how much may be spent, how and from whom may money for advertising be raised, etc. The media of news and information should make it a point to keep the public informed about the world of advertising. Considering advertising's social impact, it is appropriate that media regularly review and critique the performance of advertisers, just as they do other groups whose activities have a significant influence on society. In brief, Coca Cola needs to consider the following suggestions-

With regards to ethical aspects of advertisement policy Majority of the respondents agree that Coca Cola maintains ethical standards while advertising so the Company should continue their basic principles of advertising. Only 11% felt that Coca Cola advertisements cross over the ethical values of our society. The main reason for which is the use of taboo humor in some advertisements. With regards to Brand Loyalty Coca Cola is already a huge brand name on its own but heavy promotion is still required to respond to its competitors. Overwhelming majority of the respondents are aware of Coca Cola advertisements (97%), but still Pepsi beats Coca Cola in terms of being the favorite soft drink by a significant 6%. With regards to the Brand Ambassador of the product The new Brand Ambassador Imran Khan is well appreciated by the public, but still, is no match to the reputation of Aamir Khan who should be involved too. Not long ago the company was featuring both Amir Khan and Aishwarya Rai in their advertisements and a similar policy can be followed even today with respect to Amir Khan and Imran Khan. This would give the new ambassador a heavy push and gain acceptance from the general public. And later on he could be entrusted of carrying out the job on his own.

SUMMARY
It is rightly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and I came to know about how a consumer chooses among a varied range of products available to him. This survey report introduces a study of consumers preferences for COCA COLA and ethical aspects of advertising. After going through a detail analysis of market behavior and future prospect, it also provides an opportunity to COCA COLA to frame a good future plan to satisfy maximum needs of the customers and establish its guiding role in the market of Delhi and throughout the country as a whole.

Advertising is one of the most powerful tools which enhances communication by connecting the company with the customers. Moral and ethical standards were proposed to restrict the range of products, services and practices that can be advertised. Nevertheless the problem still persists. One o f the questions discussed while analyzing the ethical aspects of advertising is the use of fear appeals and threat to popularize a certain product, concept etc., or to boost up the sales. The idea of using fear to advertise a certain product is viewed as unethical if the solutions that are advertised cannot eliminate the threat presented. This holds true as long as advertisers show the consequences o f not paying heed to the recommendations offered in the advertisement. Furthermore, using fear appeals and threats is considered unethical as it may create unnecessary anxiety among potential customers. However, some people support the idea o f using fear for marketing purposes. They claim that such advertisements reflect the norms of a certain society.

The importance of advertising is "steadily on the increase in modern society." This observation, made by the Pontifical Council a quarter century ago as part of an overview of the state of communications, is even more true now. Just as the media of social communication themselves have enormous influence everywhere, so advertising, using media as its vehicle, is a pervasive, powerful force shaping attitudes and behavior in today's world.

We emphasize the importance of public involvement. Representatives of the public should participate in the formulation, application and periodic updating of ethical codes.

The public representatives should include ethicists and church people, as well as representatives of consumer groups. Individuals do well to organize themselves into such groups in order to protect their interests in relation to commercial interests. Public authorities also have a role to play. On the one hand, government should not seek to control and dictate policy to the advertising industry, any more than to other sectors of the communications media. On the other hand, the regulation of advertising content and practice, already existing in many places, can and should extend beyond banning false advertising, narrowly defined. "By promulgating laws and overseeing their application, public authorities should ensure that ?public morality and social progress are not gravely endangered' through misuse of the media. For example, government regulations should address such questions as the quantity of advertising, especially in broadcast media, as well as the content of advertising directed at groups particularly vulnerable to exploitation, such as children and old people. Political advertising also seems an appropriate area for regulation: how much may be spent, how and from whom may money for advertising be raised, etc. The media of news and information should make it a point to keep the public informed about the world of advertising. Considering advertising's social impact, it is appropriate that media regularly review and critique the performance of advertisers, just as they do other groups whose activities have a significant influence on society.

QUESTIONNAIRE
Q1- NAME : .. GENDER- MALE FE FEMALE ADDRESS

Q2- Which age group you belong to? a) 5-18 b) 18-30 c) 30-50 d) 50 and above. Q3- What is your approx. Family Income? a) Less than 10,000/b) 10,000 1,00,000/c) 1,00,000 5,00,000/d) 5,00,000 and above. Q4- What is your Educational level? d) Under Graduate. e) Graduate. f) Post Graduate. Q5- How did you hear about your favorite soft drink? Television Radio Newspaper

Others (please specify)

Q6- Which is your favorite soft-drink? Coca Cola Pepsi Thumbs up Other Q7- How important are the following aspects in a soft drinks? (RATE THEM from 1-6) BRAND NAME TASTE EASY AVAILABILITY PACKAGING PRICE PROMOTION ANY OTHER (PLEASE SPECIFY

Q8- Have you seen any advertisement of ANY Cola drinks? Yes No

Q9- 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

Q10- Do you feel T.V advertisements influence purchase decision?

Yes

No

Not Always

Q11- Do you think companies should be forced to follow prevalent ethical norms while planning their advertisements? Ofcourse Preferably Not necessarily

Q12- Do Coca Cola ads cross over ethical values while promoting their products? Yes Plz commentNo

Q13- If any, what would you say be reason as to why these ads are considered unethical? 7) Deceptive 8) Vulgarity 9) Use of Taboo Humor 10) Immoral 11) Threatening 12) Others

Q14- Finally, who is the your favourite choice to be Brand Ambassador of Coca Cola? Amir Khan Imran Khan Aishwarya Rai Other

Q15- What suggestion would you give to Coca Cola Company -

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.

WEBSITES : www.cocacola.com SEARCH ENGINE :www.google.co.in