coca cola marketing strategies

A RESEARCH PROJECT REPORT ON

“ MARKETING STRATEGIES OF COCA-COLA”

In partial fulfilment of the requirement for the award of the degree of Master of

Business Administration of U.P. Technical University, Lucknow (2003-2005)

SUBMITTED TO : SUBMITTED BY:

Prof.- Dr. JITENDRA MEHROTRA BRIJESH KUMAR SONI

(Dean school of management studies) MBA-IV SEM

MANGALMAY INSTITUTE OF MANAGEMENT AND TECHNOLOGYGREATER NOIDA

PREFACE

“Acceptance of New challenge makes the path for future success”

Today companies must urgently and critically rethink their business mission and marketing strategies.

Instead of operating in a market place of fixed and known competition and stable customer preferences,

today companies work in war zone of rapidly changing customer/competitor technological advance, new

law , managed trade policies and diminishing customer loyalty.

Company considers the fact that today customer face a plenitude of product every category. Consider

that customer exhibit varying and diverse requirement for product service combination and prices.

In the face of their vast choices, customer will gravitate to the offering that best meet their individual

needs and expectation.

Therefore it is not surprising that today’s winning companies are those who succeed best in satisfying

indeed delighting, their target customer. If they can’t bring something special to get market. They will

not last long. These companies are market. They will not last long. These companies are market focused

and customer driven.

They pay extreme attention to quality and service to meeting and even exceeding customer expectation.

ACKNOWLEDGEMENT

I feel an immense pleasure in taking this opportunity to express my sincere thanks and deep gratitude

towards my honourable guide Mr. manoj chauhan, Regional Sales Manager (DASNA), for designing of

the project and being a constant source of inspiration and guidance. It has been a great privilege for me

to his constant encouragement, meticulous guidance, constructive criticism and invaluable counsel

through out the conduct of the project.

I am highly thankful to my guide Mr. Shamendra for the scholastic & kind advice and the valuable time

that he gave during my tenure as a trainee in COCA-COLA. I am also thankful to all the members of the

esteemed staff of Marketing Department of COCA-COLA, especially Mr. Jeevan Joshi, Mr. Ashwini

and Ms. Renu, who helped me directly or indirectly in my endeavour. They too guided me whenever

required.

I shall be failing in my duty if I do not acknowledge my thanks to Prof.- Dr. Jitendra Mehrotra, Dean

shchool of management studies & coordinator Prof. Sandeep Sharma Management in Mangalmay

Institute of Management And Technology, Greater Noida, without whose guidance and cooperation this

project would haven’t been successfully accomplished.

Brijesh Kumar Soni

INTRODUCTION

In 1893 in January Coca-cola was registered in the U.S. PATENT office.

In 1894 the first syrup plant outside of Atlanta was opened in Dallas.

In 1906 the first two countries outside the U.S. to bottle Coca-Cola were Cuba and Panama.

In 1915 the Root Glass co. created the Coca-Cola contour glass bottle.

In 1919 the co. was sold to group of investors for $25 million.

In 1923 Coca-Cola Robert W.woodruff became president of the Coca-Cola Co. his more than six

decades of leadership took the business to unrivalled heights of commercial success, making C0ca-

C0la an institution all over the world.

In 1925 6million Coke sold per day.

In 1927 the first Coca-Cola radio advertisement.

In 1928 Sales of bottle Coca-Cola surpassed fountain sales for the first time.

In 1929 Advertising slogan-“The Pause That Refreshes”.

In 1940Coke is bottled in over 40 countries.

In 1956 Advertising-“Coca-Cola, making good thing taste better”.

In 1961 Sprite was introduced.

In 1970 advertising slogan-“it’s the Real Thing”.

In 1971 The song “I’d like to buy the world a Coke” was released.

In 1979 advertising slogan- “Have a Coke and a Smile”.

In 1982 Diet Coke was introduced in July.

In 1988 Coca-Cola was the first independent operator in the Soviet Union.

In 1989 Advertising slogan-“Can’t Beat the Feeling”.

In 1993 C0ca-C0la exceeds 10 billions cases sold worldwide

COCA-COLA: In Relation to India

The Coca-Cola Co. first came to India in 1930’s. it left the Indian shores in 1977. coca-cola returned

to India after a 16yrs. Absence and was launched in Hathras near Agra on Oct.26 th. A strategic

alliance with Parle Exports gave the co. instant ownership of the nations top soft drinks viz.: Thumps

Up, Limca, GoldSpot and Maaza. Coca-Cola could also get hold of Parle’s extensive 54 bottling

plants network spread all over India and a base for a rapid introduction of the Co’s international

brands.

CCI has the distinction of declaring breakeven in the very first year of operations, in 1994. then in

1996, Coca-Cola’s Indian volume in terms of gallon sales grew by 21%over 1995. while unit case

sales grew by 23% over 1995, carving out a 61.7% market share.

The Co. has now a 53 strong bottling plnat network and has been guaranteed approval by the Govt.

of India to invest a total of US$840 million into the country.

FACTS ABOUT COCA-COLA

While much of the world has changed since 1886, the pure and simple magic of a thing remains

same “Coca-Cola”. The name and the product means so many good things to hundreds of millions of

consumers round the globe. Coca-Cola products are served more than 773 million times everyday,

quenching the thirst of consumers in more than 195countries and in every climate.

That’s long way to come after such a modest beginning.

OUR ROOTS

While much of the world has changed since 1886, the pure and simple magic of one thing stays the

same Coca-Cola. The name and the product represent simple moments of pleasure for consumers in

nearly 200 Countries around the globe, who for products of the Coca-Cola Co. hundreds of millions

of times every single day.

John Styth Pemberton first introduced the refreshing taste of Coca-Cola in Atlanta, Georgia in a

three legged brass kettle in his backyard. He first ‘distributed’ the new product by carrying Coca-

Cola in a jug down the street to Jacob’s pharmacy. For five cents, consumers could enjoy a glass of

Coca-Cola at the soda fountain. Whether by design or accident , carbonated water was timed with

the new syrup, producing a drink that was proclaimed ‘delicious and refreshing,’ Dr. Pemberton’s

partner and bookkeeper, Frank M .Robinson, suggested the name and pinner “Coca-Cola” in the

unique flowing script that is famous worldwide today . Mr. Robinson thought the “two Cs would

look well in advertising”.

Dr. Pemberton sold 25 gallons of syrup , shipped in bright red wooden kegs. Red has been a

distinctive color associated with the number I soft drink brand ever since . For his efforts , Dr,

Pemberton grossed $50 and spent $13.96 on advertise.

By 1891 Atlanta entrepreneur Asa G. Candler had acquired complete ownership of the Coca-Cola

Business. With in years, his merchandising flair helped expand consumption of Coca-Cola Co. was

sold to a group of investors for $25million. Robert W. Woodruff became president of the Co. in

1923, and his more than six decades of leadership took the business to unrivalled heights of

commercial success, making Coca-Cola institution the world over.

COCA-COLA’S STRATEGY TO REACH INCREASED NUMBER

OF CONSUMERS

The 3 A’s id the underlying strategy for meeting Co’s.goals in order to reach increasing number of

consumer’s . thus the 3A’s are:

Availability

The ways to increase availability of the product of Coca-Cola Co. includes improved or innovative

new packaging, Dispensing systems, and distribution system, marketing programs and training and

development programs.

Acceptability

Making Coca-Cola brand is the beverage choice for any occasion depends on a variety of strategies

designed to reach target audience. Acceptability can also be accepted through advertising,

sponsorship, and promotion, youth market activities, community programs and other activities.

COCA-COLA’S MARKET APPROACH

More than a billion times every day, thirsty people around the world reach for Coca-Cola products

for refreshment. They deserve the highest quality----- every time. Our promise to deliver that quality

is the most important promise we make. And it involves a worldwide, yet distinctively local,

network of bottling partners, suppliers, distributors and retailers whose success is paramount to our

own. Our investment in local communities in over 200 countries totals billions of dollars in jobs,

facilities, marketing, the purchase of local goods and services, and local business partnerships.

Always and everywhere, we purse continuo’s innovation in the products we offer , the processes we

use to make them, the packages we develop and the ways we bring them to market.

OUR BRANDS

Wouldn’t you to know what Apricot, Coffee, Lychee Nut, Orange, Cola Mix and Sour Cherry

beverages taste like?

One of the most popular areas of the world of Coca-Cola, our Co’s. Atlanta attraction, is “Taste of

the World”, the opportunity to sample some of the many beverages we produce. As the global leader

in the non-alcoholic beverage industry, we offer nearly 300 brands across almost 200 countries.

Many of these brands, including soft drinks, fruit juices, bottles water and sports drinks, are only

available in specific reason for this is simple: different people like different beverages at different

times, for different reasons.

So pour yourself a virtual glass of something you have never experienced before. Take a look at

some of the many brands we offer to people around the world.

Coca-Cola :

Coca-Cola is the most popular and biggest selling soft drink in history, as well

as the best known product in the world . created in Atlanta, Georgia by Dr. John S. Pemberton, Coca-

Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with Carbonated water. Coca-

Cola was registered as a trademark in 1895. Coca-Cola was being sold in every

state and territory in the United States. In 1899, the Co. began franchised bottling operations in the

United States.

Today, you can find Coca-Cola in virtually every part of the world and the Coca-Cola Co. has more

than 230 beverages to its portfolio.

Diet Coke

“Looking good and tasting great”

Diet Coke was born in 1982 and quickly became the No.1 sugar free drink in diet –conscious

America, known as Diet Coke in the U.S., Canada, Australia and Great Britain and as Coca-Cola

light in other countries, it’s now the No.3 soft drink in the world. It’s the drink for people who want

no calories, but plenty of taste. Ad campaigns around the world for diet coke share a playful,

sophisticated and sexy attitude.

Visit our Audio/Video-center to witness how the Diet Coke north American ad campaign celebrates

the real and human attributes that make people alluring in the eyes of others.

Fanta:

The Coca-Cola Co. acquired a favourite in Europe since the 1940’s, Fanta in 1960. Fanta Orange is

the core flavour, representing about 70% of sales, but other citrus and fruit flavours have their own

solid fan base.

Consumers around the world, particularly teens, fondly associate FANTA with happiness and special

times with friends and family. This positive imagery is driven by the brand’s fun, playful

personality, which goes hand in hand with the bright color (particularly orange), bold fruit taste, and

tingly carbonation. Fanta sells best in Brazil, Germany, Spain, Japan, Italy and Argentina. Fanta

distribution was increased in the U.S. in 2001 with the return of four flavour : Orange, strawberry,

pineapple and grape. Orange, the biggest seller, is now available in most of the country.

Limca:

“ Light and Lemony”

This thirst quenching beverange features a fresh, light lemon-lime taste and fun-loving attitude. It’s a

homegrown, national treasure in India, where the Coca-Cola Co. acquired it in 1993. the product’s

invigorationg taste and cloudy look haven’t changed, but the brand has been revitalized with a new

marketing campaign. Limca continues to build a loyal following among young adults who love the

lighthearted way it compliments the best moments of their lives. It’s also become a hit in many

Persian Gulf countries. Grab a Limca and go.

Maaza:

“yaari Dosti Taaza Maaza”

http://www.coca-colaindia.com/brands/brands_limca.html

http://www.coca-colaindia.com/brands/brands_maaza.html

with the real fruits taste kids love, plus added calcium, Maaza’s tagline, “Yaari-Dosti Taaza Maaza

“means” Friendship moments with fresh Maaza”in Hindi. Maaza was introduced in India in 1984 as

a no carbonated mango fruit drink. It was acquired by the Coca-Cola Co. in 1993 and is currently

available in three flavours, manbo, pineapple and orange plus added calcium.

Sprite:

“Clear, crisp, refreshing.”

Introduced in 1960, Sprite is the world’s leading lemon lime flavoured soft drink.sprite is sold in more

than 190 countries and ranks as the No.4 soft drink worldwide, with a strong appeal to young people.

Millions of peopleenjoy Sprite because of its crisp, clean taste that really quenches your thirst. But also

has an honest, straightforward attitude about things that sets it apart from other soft drinks. Sprite

encourages you to be true to who you are and to obey your thirst.

Thumps Up:

“Strong Cola Taste, exciting personality”:

http://www.coca-colaindia.com/brands/brands_sprite.html

http://www.coca-colaindia.com/brands/brands_thums_up.html

Thumps Up is the leading carbonated soft drink and most trusted brand in India, originally introduced in

1977, it was acquired by theCoca-Cola Co. in 1993. it is known for it’s strong, fizzy taste and it’s

confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the

boys.

COMMITMENT TOWARDS INDIAN BRANDS

Coca-Cola India (CCI ) has implemented aggressive strategies for all the five brands acquired from

Parle. The strategies adopted are in concern with the long –term plans of Coca-Cola India. The Coca-

Cola Co. is the world’s largest beverage Co. and is the leading producer and marketer of soft drink. The

Co. markets 4 of the world’s top 5 brands, including Diet Coke, Fanta Sprite.

As the 200ml returnable Glass Bottle (RGB)has become the popular package size of the Indian

Carbonated soft Drink Industry. Thumps-up and limca are now available in 200ml RGB, 300ml RGB,

500mlPET, 2lt PET, 330mlcans thus , along with Coca-Cola and Fanta, the Indian consumer has a

choice of 4 brands in cans. Collectively, the choice in package sizes available to consumers is now wider

than ever before. This has also generated incremental volume growth at the retail level adding positively

to the per capita consumption in the country.

While thumps Up has always been India’s leading Carbonated soft drinks, Limca is the No. 1 brand in

the cloudy lemon segment. From 1993 till date, inputs in both the brands ran the gamut in advertising to

packaging, raising brand awareness to unprecedented levels. The investment in acquiring these brands

and the proceeding inputs there in has seen these brands grow admirably. While Thumps-up has grown

over 50% over the last 3Yrs , Limca has grown over 20%.Thumps-Up recorded a phenomenal growth of

54% in the Mumbai market in March 1997, the first month of the launch of the new logo. The new logo

that has a strong streak of blue speed lines adding a powerful element of speed and adventure was

featured on 500ml refillable “thunder Pack” bottles. Research conducted by “research International” in

Mumbai showed that 84% of Thumps-Up consumers preferred the new logo to the old one.

COCA-COLA’S: CREATIVITY IN ADVERTISIMENT

Coca-Cola:

“Thanda Matlab Coca-Cola”

this ad is creative in the sense that, while enjoying they can use the word “Coca-Cola” in the place of

“Thanda”. The word thanda has been made to be synonymous to Coca-Cola.

The Ad is made to target the common people who wish to quench their thirst by just asking for any

brand instead of Coca-Cola. While doing such they may extend their taste, behaviour $preference

towards Coca-Cola. The main theme of this slogan is to make the brand common for every person and at

every time.

THUMPS UP:

“taste the thunder”

this advertisement is also creative. The slogan itself refers the thundering idea. It challenges the

teenagers for the taste. It is well known the today’s youth want to do something extraordinary. They

want to showthemselves superior. So company is exploiting the mentality of today’s youth that the

productis for them who want to accept the challenges.

SPRITE:

“ dekhave pen a jao apni akal lagao”

the creative advertisement refers that don’t go on exposure . try to go on rationality. It made for those

people who want to do their work by their own opinion and taste.

Now a days everything is full of exposure that is made to attract the people and such type of products

always give the dissatisfaction among the people. Therefore the world’s biggest soft drink company has

made a product for the man who doesn’t try to go on exposure and who always believe in rationality

i.e. sprite.

LIMCA:

“ just ! Take it Easy”

it is well known that lemon in used to over come the stress as well as it helps in digesting. Regarding

thia truth Coca-Cola made its product Limca, to follow the principle of lemon. Ot refers that if someone

is in the depth of stress and strain and he want to refresh himself, he must go on lemon flaver, Limca is

the best.

COCA-COLA INDIA-OUR VISION

Provide exceptional strategic leadership on the Coca-Cola India system, resulting in consumer and

costomer preference and loyality, through Coca-Cola’s commitment to them and in a highly profitable

Coca-Cola corporate branded beverages system.

THE COCA-COLA MISSION

“ THE BEST GLOBLE COMPANY “

the mission of Coca-Cola co. is to increase shareowner value over time. The co. accomplishes

the mission by working with its business partners to deliver satisfaction and value to customers and

consumers through world wide system of superior brands and services, thus increasing brand equity on

a global basis, create customer products, services and communications, customer service and bottling

strategies, process and tools in order to create competitive advantage and deliver superior value.

OBJECTIVES OF THE STUDY

In this study an effort has been to several factors which need to be taken due consideration to adhere to

the advertising, sales promotion and various sales influencing factors of the soft drink market.

In the fast changing competitive as well as economic scenario all around the world and the domestic

front, the main objective of the study are:-

To study the promotional policies of the beverage companies onto various highways.

Study the comparative adds promotion by Coke in respect to Pepsi.

Analysis regarding displays set up on the highways by the companies in order to induce the sales.

Study for designing the budget requirement of the company for the coming year mainly focusing

marketing of the product.

Basically survey on the type of promotional setback faced by their product not representing up to

mark performance.

HIGHWAY ANALYSIS

An indigenous effort on the behalf of the surveyor in order to be very cautious while collection of

the raw data that is of primary nature of promotion at highways.

This highway is a part of the study undertaken on the behaf of the Coca-Cola Co. in order to help it

design out its next coming years marketing and advertising are performed in order to capture the

psychological attention of the passed by in order to refresh them.

The study is thereby based on the primary data collected at various refreshing outlets being covered

on the major highways of – Delhi and NCR region. It is basically a comparative study between the

two major “ColaGiants”-PEPSI and Coke.

The two major routes being covered during my survey on the project are:

Noida ( Sec-37) To Surajpur.(Route having Pepsi’s- Devyani Bottling Plant)

Vijay Nagar Check Post To Garh Ganga.(Route having Coca-Cola’s Ghaziabad Production Plant)

SURVEY TERMINOGY

(1) SHOP NAME : Name of the Outlet.

(2) AREA : Route break- through being covered.(Market Area Studied)

(3) GSB : Glow Sign Board.

(4)DPS : Dealer Printed Sign Board.

(5) COUNTERS : Metallic/Wooden Counters With Company’s Printing.

(6) TABLE-CHAIR : Moulded Furniture along Umbrella’s various restaurants.

(7) WELL-PAINTING:Outlet containing Co. painting on the wall for promotion.

(8) SGA : Sales Generating Assets.*Refrigerator. * Ice Boxes

(9) RACK : Various types of racks holding the display of the company’s product.

MARKET PROMOTION ANALYSIS

(Special Supervision –Inspection Report in MODI NAGAR MARKET)

The research approach being followed in Modi nagar Market was regarding the supervision of various

outlets, which is one of the major consumable highways. There was a special inspection done onto the

statistical need of various sales promoting accessories being provided to the retailers.

The distributing unit cover’s the over all supply to the market with his efficient sales force in

application. The unit here has a daily requirement of 550 carets of 200ml &300mlof Coke, ThumpsUp,

Fanta, Limca and Sprite. Whereas the pet consumption is concerned the scenario is:-

500 ml – 65 packs.

2 ltr. - 30 packs.

1ltr. - 70 packs (Kinley- Distelled Water)

# LIMCA being the most demanded range of soft drink.

TABLE-1

Various consolidated figures representing the share of both COCA-COLA and PEPSI on Noida Sec(37)

to Surajpur Highway.

CATEGORY COCA-COLA PEPSI

GSB 8 20

DPS 7 18

COUNTER 9 23

TABLE-CHAIR &UMBRELLA

2 7

WALL PAINTING 13 35

SGA 35 43

RACK 18 24

Total Number of outlets: 71

Major Areas covered under this Highway:

Surajpur Dadri Road (market).

Sutyana.

Haldwani Crossing.

Bhangel.

Kulesra.

Salarpur.

Baraula.

Noida(sec.37-49).

TABLE-II

Similar consolidated data in respect of the market share of both COCA-COLA and PEPSI on Vijay

Nagar (check post) to Garh Ganga.

CATEGORY COCA-COLA PEPSI

GSB 83 67

DPS 23 15

COUNTER 39 42

TABLE-CHAIR &UMBRELLA

11 6

WALL PAINTING 59 41

SGA 64 53

RACK 73 61

Total Number of outlets : 121

Major Areas covered under this Highway:

Vijay Nagar.

Masuri.

Hapur.

Pilakhwa.

Gulawati.

Garh Ganga.

ANNEXURE

FINDINGS & ANALYSIS

Glow Sing Board

The study here revealed that usually the outlets had GSB’s distribution at a large scale but they did not

cover the entire area. Coca-Cola though had a good promotional share but Pepsi was not far behind and

also gave a challenging stand. Being an aera that did not had an outstanding exposure the outlets were of

small entity and were provided with the GSB.

COCA-COLA 83

PEPSI 67

Dealer Printed Sign Board:

Under the area study it could be seen that both Coca-Cola as well as Pepsi did not provided DPS’s at

various outlets, as it is a general view that they are being given at large consuming outlets. But taking in

consideration the market potential here not many of the outlets could claim such accessories. In all the

distribution of it is not lead emphasis thereon by the companies

Counters:-

During the study it was observed that over the entire the market region under this category the COCA-

cola CO. FELL BEHIND Pepsi and also the total distribution was not even . many of the outlets were at

commercial places that induced the framework of their own private interior where there is no scope of

counters. They are most needed at “Pan Bhandar, Juice Corner or Sweet Shop” which are rarely big

consumption units.

COCA-COLA 23PEPSI 15

COCA-COLA 39

PEPSI 42

Table- Chair- Umbrella:-

While covering the entire area it was very surprising to know that the companies had no satisfactory

performance out there . Coca-Cola having plant over this route also did not lay any outstanding effort.

This category resembled a very meagre growth here and hardly makes any sense providing it to such

places where you cannot bring about any difference in the promotion of the product.

COCA-COLA 11PEPSI 6

Wall Painting :

On the survey duration it was observed that in such areas where after every (5-7) a new small started,

where we generally know that people follow signs & painted advertisement. Thus a close stand by Pepsi

was seen and the outlets experienced mostly either Coca-Cola or Pepsi. But the share of it could not be

seen much as the people are already aware of both the enterprises.

COCA-COLA 59

PEPSI 41

Sales Generating Asset:-

They are the assets being categorized, which play a vital role in preservation of the products –

refrigerators or iceboxes. Many of the outlets do had them in abundance but others had to only feed

upon one of them . this being the most essential requirement for outlet one who stocks soft drinks as no

one is going to purchase a hot one. A handsome distribution follow onto the outlets can be seen which

also sometimes make people aware of advertising being done through this source.

COCA-COLA 64

PEPSI 53

Racks:-

The entire survey dealt with the distribution of accessories, which are one of the essential ones to have an

impressive promotional outlay. Among the best reviewed one was “racks” which have been provided at

non-accountable reason, which shows that people may place it at & mark as symbol promotional

induction to the retailers.

COCA-COLA 73

PEPSI 61

They compete vigorously, and at the same time they cooperate smartly with their strategic partners in

their supply and distribution chain.

Every company has a set of department to viewing it as a system for managing core process. Company

must manage and master such basic process order generation to order fulfilment.

In modern marketing discipline mass market are fragmenting in micro- market, multiple distribution

channel are replagceing single channel, price discounting and sales promotion.

Designing the best marketing mix “To make a sale” there is growing emphasis on designing the best

relationship mix for winning and keeping customer. Good customer are an asset which , when will

managed and served, will return a handsome lifetime income stream to Co.

Relationship marketing is not only a company drives to bond better with their consumer. Companies

also develop mutually profitable relationships with their retailer, supplier and distributor. If the Co.

squeezes its retailer profit unduly, it forces too much product on distributor the Co. will fail. Smart

companies check & balance with their supplier and distributor in the drive to better serve their ultimate

customer.

And marketing, at its best goes beyond meeting existing customer needs. Good company will meet

needs; and great companies will create a market.

TABLE-III

Marketing promotional data being collected through daily survey as to the scenario of both Coca-Cola

and Pepsi and inspecting the need of the promotional accessories therefore. The entire highway market

being studied started from Sumam theatre to Kadrabad.

CATEGORY COCA-COLA PEPSI NONE

GSB 39 15 4

DPS 31 9 18

COUNTER 28 27 3

TABLE-CHAIR &UMBRELLA 9 5 44

WALL PAINTING 31 17 10

SGA 29 26 3

RACK 27 29 2

Total Number of Outlets: 58

Major Market Area Covered on the Highway:

Suman Theatre.

Govindpuri.

Rajchopla

Kadrabad.

Glow Sign Board:-

Being a small market equipped of various small shops and cool corners they mostly possessed the

GSB’s. while at some big outlets there may be 2 or more. Taking into consideration this market Pepsi

has a high competitive share with Coca-Cola, which need to be taken care of.

0

10

20

30

40

COCA-COLA

PEPSI NONE

GSB

Dealer Printed Sign Board:-

Many of the outlets were provided the DPS’s while the market promotional activities had been

conducted. Pepsi though behind Coca-Cola in this category had not lead down much emphasis on it.

Usually found at bigger outlets that do bulk stocking of the product as the company’s advertising is

being featured on it .

0

10

20

30

40

COCA-COLA

PEPSI NONE

DPS

Counters:-

Both Pepsi as well as Coca-Cola go hand in hand under this criterion. On regular basis the counters of

Coca-Cola were distributed earlier and Pepsi made its distribution later, which was observed as a result

that the later ones seemed new. The counters do add to the outlets initial impact at the consumer, which

attracts him to make the purchase.

05

1015202530

COCA-COLA

PEPSI NONE

COUNTER

Table- Chair-Umbrella :-

In the market of Modinagar there’s a limited scope for these accessories as they are found mostly at

open air restaurants having large premises. The restaurants here are not much sophisticated with gardens

or compounds having place to put in Umbrellas, etc. also a major share of the market is left untouched

by such provisions that may flourish in near future.

0

10

20

30

40

50

COCA-COLA

PEPSI NONE

TABLE-CHAIR & UMBRELLA

Wall-Painting:-

Various sweets corners and cooling points at the market bore it. Recently Coca-Cola revived the entire

market painting and turned the whole market in “red”. Thus , at various Pepsi outlets even the retailers

got their display and walls painted red with Coca-Cola’s advertisements.

0

10

20

30

40

COCA-COLA

PEPSI NONE

WALL PAINTING


there is high demand of refrigerators by the retailers, as they want to have an increase in the number of

SGA’s to stock more. Both Coca-Cola and Pepsi had already provided each at their respective corners.

Under this segment both of them have near about stand this being one of the basic necessities.

0

10

20

30

COCA-COLA

PEPSI NONE

SGA

Rack:-

Under this category it’s Pepsi who has taken the lead as a result of their recently organized rack

distribution scheme. The retailers in return had to purchase additional stock for display on the racks in

turn of PET bottles. They do play a major role in the display of the product outside the cool corners and

helps in attracting the consumers

.

0

10

20

30

COCA-COLA

PEPSI NONE

RACK

BIBLIOGRAPHY

Kothari Philip, Marketing Management, Prentice Hall India, New Delhi, 2004.

Kothari C.R, Research Methodology, Wishwa Prakashan, New Delhi, 2002.

www.cocacola.com .

www.google.com

www.coca-colaindia.com

http://www.coca-colaindia.com/

http://www.google.com/

http://www.cocacola.com/

CONCLUSION

1) The various retailer had an enormous demand for better GSB’s and in many cases of DPS for a

better, impressive outlet look to attract consumers.

2) The endless demand of visicoolers in order to store large quantity of stock as a part of marketing

and distribution promotional function of the company is studied therein.

3) The steady flow of the company’s promotional accessories could be felt irrespective of the

consumption of the outlets of the product. For example: racks, counters, sign boards, etc.

4) In a competitive environment the company got to study the schemes of their closest rivals, which

they followed and in return fulfilled, the needs regarding their outlets set up.

5) Timely check up of the proper usage of the Co’s assets (SGA) being made as well as their

malfunctioning is rectified.

6) Misuse of the Coca-Cola SGA’s should be brought into consideration as a retailers, stock, other

companies, stock and depreciate the demand of the source company.

7) The archrivals product study can be entertained from the retailers and the privilege on their part

is known which helps in formulation of better marketing promotional scheme’s

8) Pepsi’s regular stockholders be traced and break up by providing motivational introductory

offers enhancing the market capture.

9) Coca-Cola should try to make arrangements so that the marketing representatives would visit the

retail outlets regularly and try to solve the retailers, as well as the distributors, problems which

they usually face during the peak season.

10) Better efficient sales representatives be appointed to update the retailers about the schemes in

comparison to Pepsi. This would encourage a curiosity regarding the Coca-Cola schemes among

them.

11) The complaints of the retailers be studied and paid attention of the highest degree to ensure better

market capturing.

EXPLANATION

1) GSB- GLOW SING BOARD:

It is a display board or hoarding bearing the promotional advertisement of the respective product of the

company. The companies for their product promotion and sales enhancement usually provide them.

2) DPS-DEALER PRINTED SIGN BOARD :

Display boards of the same nature with an additional feature of the retailer’s name or the outlet’s name

being mentioned on them , in order that the sponsors bear the value –addition on the behalf of the

company.usually provided to stockist who have large consumption of the product.

3) COUNTERS:

Wooden or metallic framework provided by the company to the exclusive outlets which either stock in

bulk or which are particular brand outlets. The company in return promises a certain fixed stock supply

for a certain time period. The counters bear the company’s advertisements as a source of marketing

promotion.

4) TABLE- CHAIR- UMBRELLA:

moulded furniture of plastic is being provided at various open-air restaurants or “dhabas” for the

convenience of the customers while their visits. In return the company achieves product promotion as

well as retailers satisfaction. They can also be seen at various street side cafes and juice corners.

5) WALL PAINTINGS:

painting of the brand advertisements on the walls of the outlets, which in result attract and remind the

consumers about the product. This makes the consumer aware of the popularity and promotional effort

made on the behalf of the company.

6) SGA-SALES GENERATING ASSET:

Under this category we generally head the refrigeration, visicoolers, and even the old designed iceboxes.

On the other hand it enables to motivate the retailers for better sales on company’s behalf.

7) RACKS :

they are different types of plastic or material holders, which are used for the display of the pet and other

glass bottle. This creates a healthy exposure of the products, remembrance to the ultimate consumers.

These all help in generating the company’s brand image at different levels:

Market

Retailers

Consumers

Glow Sign Board : Distribution:-

As per the observation of the route here it can be seen that PEPSI has made a nice promotional effors in

distributing its GSB’s on various outlets. This has made the market capturing for Coca-Cola tougher and

a regular supply from their “Devyani Bottling Plant” proved effective on the behalf of their services to

retailers. There is a fruitful effort made by the Pepsi in order to turn around the entire highway “blue”

and it can be proved up to some extent apart that Coca-Cola has also played in it’s role.

COCA-COLA 8

PEPSI 20

Dealer Printed Sign Board:

While the survey was being done on the entire highway it revealed that at various bigger outlets Pepsi

has already provided DPS’s. in order to breakdown its retailers and the distribution Coca-Cola has to

make indigenous efforts. The retailers need something “extra” to be convinced to stock Coke in addition

to Pepsi; overall there is a steady promotional effort to be put in. an outcome of this that can be felt is

that at bigger consumable outlets there is capture of Pepsi.

COCA-COLA 7

PEPSI 18

Counters:-

The coverage of the highway showed that there was not much emphasis on the distribution of the

so called “counters” as the market here is not promising. But then too the study revealed that Pepsi had

provided it to the outlets, which are at places that prove prominent for the promotional activity. Coca-

Cola came out with a poor promotional concern, as the potential held by them is weaker at the entire

area. Also there could not be seen considerable number of general stores and open-air restaurants all

along the highway.

COCA-COLA 9

PEPSI 23

Table- Chair &Umbrella:-

During the survey it was observed that the supply of these sorts of accessories is very meagre, as

we could not view any street side restaurant and halting corner. This survey did give a dignified figure

that there ‘s no such effective requirement but then too Pepsi reported to be dominating. It revealed that

Coca-Cola did not make any efforts to capture the highway here as the potential of soft drinks has not

yet gained pace here.

COCA-COLA 2

PEPSI 7

Wall- Painting:-

Usually the outlets here had wall painting that enhanced the people to memorize about the

refreshment by having a drink and get exhausted. It’s basically to attract people in order that they are

able to recognize a suitable place for them to have a coke or Pepsi. Also a very common type of

promotional activity adopted by the companies to attain popularity. Coke though tried its level best to

outrage Pepsi but was not successful and resulted in unsatisfactorily.

COCA-COLA 13PEPSI 35


Under this category the companies head the various instruments that are useful in the handling of the

product in a very feasible manner- refrigerators, iceboxes,etc. both Coca-Cola and Pepsi provided them

on schemes being an essential requirement for sustaining of such products but the later one had the

coverage area in a better way.

COCA-COLA 35

PEPSI 43

Rack:-

They are the plastic moulded or metallic framed structures that are used for holding the glass bottles or

even the pet for display. They are ones that is a healthy scope for display needed or sometimes for the

beautification of the outlet.

COCA-COLA 18

PEPSI 24

HISTORY OF COCA- COLA

Dr. John S. Palmerton in Atlanta, Georgia invented Coca-Cola in May 1886. the name “Coca-Cola” was

suggested by Dr. Pemberton’s bookkeeper, Frank Robinson. He penned the name Coca-Cola in the

flowing script that is famous today. Willis Venable first sold Coca-Cola at an average of nine drinks a

day, adding up to a total sales for that year of $50 since the year’s expenses were just over $70, Dr.

Pemberton took a loos. Today products of the Coca-Cola Company are consumed at the rate of more

than one billion drinks per day.

WHAT IS THE COCA-COLA

The Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-

alcoholic beverages, which we sell to bottling and canning operations, authorized fountain wholesalers

and some fountain retailers. We also market and distribute juice-drink products. In addition, we have

ownership interest in numerous bottling and canning operations.

The Coca-Cola company exists to benefit and refresh everyone who is touched by our business. Founded

in 1886, our company is the worlds leading manufacture, marketer and distributor of non-alcoholic

beverage brands. Our corporate headquarters are in Atlanta, with local operations in nearly 200 countries

around the world.

Our local strategy enables us to listen to all the voices around the world asking for beverages that span

the entire spectrum of tastes and occasions. What people want in a beverage is the reflection of which

they are where they live, how they work and play , and how they relax and recharge. Whether you are a

student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a

child in Peru asking for a juice drink , but also to contribute to communities around the world through

our commitments to education, health, wellness and diversity.

We strive to be a good neighbour, consistently shaping our business decision to improve the quality of

life in the communities in which we do business. It’s a special thing to have billions of friends around

the world and never forget it.

ADVERTISING SLOGANS

1886 : Drink Coca-Cola

1904 : Delicious And Refreshing

1905 : Coca-Cola Revives And Sustains

1906 : The Great National Temperance Drink

1917 : three Million a day

1917 : Three Million A Day

1922 : Thirst Knows No Reason

1925 : Six Million a Day

1927 : Around The Corner From Everywhere

1929 : The Pause That Refreshes

1932 : Ice-Cold Sunshine

1938 : The Best Friend Thirst Ever Had

1939 : Coca-Cola Goes Along

1942 : The Only thing Like Coca-Cola is Coca-Cola itself . it’s The Real Thing

1948 : Where There’s Coke, There’s Hospitality

1949 : Coca-Cola…..Making Good Things Taste Better

1952 : What you Want Is A Coke

1956 : Coca-Cola…..making Good Things Taste Better

1957 : Sign Of Good Taste

1958 : The Cold, crisp Taste of Coke

1959 : Be Really Refreshed

1963 : Things Go Better With Coke

1970 : It’s The Real Thing

1971 : I’d Like To Buy The World a Coke

1975 : Look Up America

1976 : Coke Adds Life

1979 : Have A Coke and A Smile

1982 : Coke Is It!

1985 : We’ve Got a Taste For you (Coca-Cola And Coca-Cola Classic)…..American’s Real Choice.

1986 : Catch the Wave (Coca-Cola) Red White And You (Coca-Cola Classic)

1989 : Can’t Beat The feeling

1990 : Can’t Beat The Real Thing

1993 : Always Coca-Cola

2000 : Jo Chaho HO Jaye Coca-Cola Enjoy

2002 : Thanda Matlab Coca-Cola (Amir Khan)

2004 : Piyo Thanda Jiyo Thanda (Coca-Cola, Aishwarya Rai)

2005 : Rangle Dil Khol Ke! (Fanta, Rani mukherjee)

: Lime ‘n’ lemoni (Limca, Model)

SOFT DRINK PENETRATION IN THE UK

VIS-A-VIS INDIA

CSDpenetration in Britain, a nation of 58 million, is almost 100 percent . there is nowhere that marketers

can go with their cans. Compare this to India , an emerging market of 1 billion people where penetration

at national level is 13% . in rural India, it is less than 5%. The per capita consumption of soft drinks

(calculated as litres of soft drink per head per year) in the UK is 203 while in India it has moved to

nearly 7 from less than 1 pre-1990. there is plenty of room still for an upsurge since this level is lower

than other emerging economies in South Asia, such as Pakistan at 19, Srilanka at 23, the Philippnes at

175 and Thailand at 100.

AFFORDABILITY: A KEY ISSUE IN INDIA

Affordability is the primary reason behind the low penetration of CSDs in India. They attract high taxes,

being treated as luxury goods by the Indian government. This makes them one of the most expensive

impulse foods for single serve consumption vis-à-vis others in the same category like chocolates,

biscuits, ice-creams and wafers, all of which have a much lower entry price point. This makes CSDs

unaffordable to a vast majority of Indian consumers, a country with per capita income of

$300

This apart, CSD consumption is extremely seasonal, skewed to summer and mainly outside the home.

Since a large proportion of women are confined to home, soft drink penetration among women is much

lower . also , India with long spells of scorching heat has problems with cooling infrastructure. fast

moving consumer goods outlets in India, soft drink outlets make up less than one third, many of whom

don’t own electrical cooling equipment.

MORE FIZZ IN INDIA THAN IN THE UK

The low penetration of CSDs in India presents a huge opportunity for Coca-Cola and Pepsi

(these are the only two beverage companies in India) to grow the category. Coke , for certain ,is pushing

the brand in emerging markets like India and China rather than in mature markets like the UK. For

instance in India, both are focused on extending distribution into rural regions. This explains why they

spent millions of rupees introducing smaller packs, 200ml bottles, at a cheaper price. Developing low

cost home packs and creating numerous occasions to drink CSDs are also part of the new strategy.

CSD GROWTH CHART: INDIA

The soft drinks market in India has registered significant growth rates after the liberazation

of the economy in the early 90’s . this phase of liberalization brought PepsiCo to India’s shores in the

1989 and Coca-Cola for the second time in 1993. (it had exited from the country in 1977 when the then

socialist government obliged foreign companies to shed majority stakes in favour of growth , in healthy

double digits , through the first half of the 90’s but has declined to single digit level in the last few years.

This is due to three reasons: the general economic slowdown, frequent price increases in the last 3 years

and the emergence of cheaper alternatives such as powdered concentrates and bottled water.

COKE& PEPSI IN INDIA: A BRUISING COLA WAR

Coke and Pepsi together spend 40 million pounds annually in outdoing one another. Even

though the potential of carbonated drink is enormous in India, coke is not banking on CSDs alone to fuel

growth. A lesson well learn from developed markets like the UK. It has entered new areas like kinley

water , Georgia tea and coffee and its Sun fill dilutable drink. These are its biggest growth engines in

India at the moment. In fact, from single-serve water bottles, Coke has now moved into the 20-litre

home packs, which has given it substantial market share. It is number two in the water business next

only to the home-grown Bisleri.

Pepsi , like its counterpart in the UK, has been a laggard in this respect. Even though it has launched

Aquafina water in India , Pepsi does not seem to be pushing it. It has no presence in the dilutable

category.

But in contrast to the UK, the Pepsi brand has a huge presence in India , both in volume and brand

image. In fact, its exemplary marketing acumen took it ahead of Coke in the early days and , even today,

Pepsi and Coke are running neek and neck in cola shares-explaining the high pitch cola war on the

Indian soil.

LIMITATIONS

The HIGHWAY SURVEY being conducted as the project work under Hindustan Coca-Cola

Beverages Pvt. Ltd. Mainly dealt with the following limitations:-

1. The survey report that was conducted had a pre-defined boundation of interviewing

the retail outlet owners. It’s based on simple observational analysis which may lead to

deflection at the time of conclusion arrival.

2. The survey sheet being designed had a limited scope of primary data coverage only. It

did not take into consideration the other availability of supply and Co ground on

which it decided upon the provision of distribution of the promotional accessories.

3 During the entire survey the retailers willingness for acquiring the accessories in

accordance with the schemes followed with them could not be noticed. This could be

one of the reasons of the non-appropriate promotional efforts in making an awareness

among the customers

4 . The data regarding:

How the accessories can be acquired ?

When the accessories did come into distribution channelling?

Were the retailers informed on the distribution?

What encouraged them to posses the accessories?

Are they enjoying back up from the company for promotional activities?

5. The time constraint was also prevalent as there was not abundant time for a detailed

study to be conducted among the retailers and dealers.

6. The financial limitations could also be felt as the funding regarding the survey was not subjected

which lead to a lack in an in-depth study to be undertaken.

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the problem.

It may be understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by the researcher in studying his research problem along with

logic behind them . it is necessary for the researcher to know not only the research methods/techniques

but also the methodology used. Researchers not only need to know how to develop certain indices or

tests , how to calculate mean or median or mode, how to apply particular research techniques but must

also know which of these methods or techniques are relevant and what would they mean and indicate

and why.

Research process consists of series of actions or steps necessary to effectively carry out the

research.

RESEARCH DESIGN:

The function of research design is to provide for collection of relevant evidence with minimal

expenditure of time effort and money. I followed the census method as I did daily route riding along

with the executives and the salesmen. I got opportunity to meet and interact with each one of the

retailers and closely came to know specific need of the promotion of Coca-Cola in the market as a

whole. I covered the distribution area under highways at Ghaziabad, Modinagar and little area of NCR

region. Under the supervision I got number of relevant data from on spot inspection and personal

observation.

METHODS OF DATA COLLECTION:

Observation and interaction with the retailers provided me in depth knowledge about the

availability of changes in promotional items provided by Pepsi and Coca-Cola by the distributors. I

collected all vital data from the outlets visits and survey during my summer training and which would be

of high consideration regarding the designing of the coming years marketing budget by the Coca-Cola

Company.

The survey sheet was instantaneously equipped of data duly observed by me and in a systematic manner.

The data thus inculcated is through Primary Source by Personal Interviews, Enquiries and Observation.

The responses thus received were also encouraging on my behalf and as well as the company.

1.) MARKETING RESEARCH OBJECTIVES:

a.) To undertake a market study to know the Coca-Cola promotion on the

highways.

b.) Comparative sales promotion (accessories) analysis with regard to Pepsi and

Coca-Cola.

2. TYPE OF STUDY : EXPLORATORY

3. RESEARCH AREA : GHAZIABAD, MODINAGAR AND NOIDA

4 SOURCE OF INFORMATION : (PRIMARY)

In this type of data collection mode the interviem\wer uses the wording and order that seems most

appropriate in the context of each interview. These interviews are useful in obtaining a clearer

understanding of the problem and determining what areas should be investigated.

5 DATA COLLECTION INSTRUMENT : (SURVEY

SHEET)

There are several ways of collecting the information considerably in the context of money costs, time

and other resoueces at the disposal of the researcher.

I collected data for my project work through the medium of Survey Sheets

In this method I got the prepared sheets from the company comprising of relevant questions related with

my project. Then I contacted respondents on their shops along with the sheets for collecting the

information.

6.) RESEARCH APPROACH: (SURVEY METHOD)

7.) SAMPLING PLAN:

Sample design is a definite plan determined before any data are actually collected for obtaining a sample

for a given population. The sample design to be used must be decided by the researcher taking into

consideration the nature of inquiry and other related factors.

I have paid attention on the following points while designing the sample:

a) Target population

b) Sample Unit

c) Sampling Size

d) Sampling Method

a). TARGET POPULATION:

the population of the study consisted of retailers and dealers. Target population was taken from the cities

of Ghaziabad , Modinagar and Noida.

b). SAMPLING UNIT:

Random sampling was chosen that is where any outlet of the whole population was likely to be selected

as any other outlet that is all the outlets of the population have equal chances.

Shops pursuing promotional tools (both dealers and retailers) in Ghaziabad, Modinagar and Noida cities.

c). SAMPLE SIZE:

a total of 250 shops were observed from the cities –Ghaziabad, Modinagar and Noida.

d). SAMPLING METHOD: Purposive Sampling

QUESTIONNARE :

Route No. :-

Name of outlet :-

Contact person :

Address :-

1 . Type of Channel:-

(a) Eatery (b) Grocery (c) Convenience (d) Institute (e) Other

2. Infrastructure of retail outlet :-

(A) Pepsi Coca-Cola

(a) Empty (i) (i)

(b)Vision/oye (ii) (ii)

(c ) Ice box (iii) (iii)

(d) Signage (iv) (iv)

3.Pack availability of a daily average sale :-

(B) Pepsi Coca-Cola

(a) 200ml (i) (i)

(b ) 300ml (ii) (ii)

(c ) 500ml (iii) (iii)

(d) 2000ml (iv) (iv)

(e) Aquafina/Kinley (v) (v)

4.

Facilities Preovided by company:

( c)

Facilities Pepsi coca-Cola

(a) Cash Discount (i) (i)

(b) Credit (ii) (ii)

(c) Empty loan (iii) (iii)

(d) Other (iv) (iv)

5. Types of Status:

(a) Pepsi monopoly (b) Coca-Cola monopoly (c) Mix

5. Which company product you sell more? (a)

Pepsi (b) Coca-C0la (c) Both

6. Why you prefer Pepsi /Coke or mix (please. Rank it):

(a) Consumer demand

(b) Service

(c) Scheme

(d) Personal relationship with company employee

(e) Facility provided by the company

(f) Relation with root agent

(g) Company staff frequently visit

7. Retailer satisfaction regarding service:

(i) which company provide better delivery

a) Pepsi (b) Coke (c) Both (d) None

(ii) which company vehicle arrives on time:

(a) Pepsi (b) Coke (c) Both (d) None

(iii) which company provides better service in emergency


(iv) which company’s vehicle is more regular in visit:


9. Retailer satisfaction equipment:

(i) which company provides better scheme (visi/oye)


(ii) Which company provides better scheme for ice box:


10. Retailer satisfaction scheme:

(i) Which company comes out with good schemes:


(ii) Which company executes his marketing scheme:


(iii) Which company provides better option for marketing scheme:

(a) Pepsi (b) Coke (c) Both (d) none

(iv) Which company offers other more trade scheme:


(v) Which company offers more value trade scheme:


11. Regular satisfaction relationship:

(i) Which company route agent behaves more supportively and professionally:


(ii) Which company official visits more frequently:

(a)Pepsi (b) Coke (c) Both (d) None

(iii) Which company officer provide better solutions:


12. Problem (if any):

13. Suggestion (if any) :

RETAILOR ‘S SIGNATURE

INDIA DIVISION

COCA-COLA INCORPORATION(CONCENTRATE) BOTTLING (HCCBPL) (COCA-COLA INDIA

HEAD OFFICE)

HINDUSTAN COCA-COLA BEVERAGES Pvt Ltd.

HINDUSTAN COCA-COLA MARKETING Pvt Ltd.

ONLY IN METRO CITYDELHI ,MUMBAI,

KOLCUTTA,CHENNAI

Personal Manager

HR Executive

MARKETING MANAGER

ORGANISTION STRUCTURE

Department Sales

Business Unit head

Market Unit Head

Unit Head

Territory Development Manager

Accounts Development Coordinator

Customer Executives

Department Personal

DepartmentMarketing

Coordinator

Department Finance

Unit Finance Controller

Financial services manager

STUDENT DECLARATION

I hereby declare that the research project entitled 'MARKETING STRATEGIES OF

COCA-COLA submitted in partial fulfillment of 'MASTER DEGREE IN BUSINESS

ADMINISTRATION' is of my original work and not submitted for the award of any

other Degree, Diploma, Fellowship or other similar TITLE or PRIZE.

TABLE OF CONTENTS

Preface

Preface

Acknowledgement

Introduction

Coca Cola’s Strategy to Reach Increased Number of Customers

Coca Cola India - Our Vision

Objectives of the Study

Highway Analysis

Survey Terminology

Market Promotion Analysis

Findings & Analysis

Bibliography

Conclusion

Explanation

Limitations

Research Methodology

Questionnaire

coca cola marketing strategies

Business

Transcript of coca cola marketing strategies