Promotional Strategies of Coca Cola

7/29/2019 Promotional Strategies of Coca Cola

1/96

Promotional Strategies of coke products

ABSTRACT

This study identifies and examines the extant literature in international

relationship marketing. Twenty-four empirical studies that address various aspects of

relationship marketing are identified. However, only eight studies were found to explore

marketing relationships across national boundaries. The remainder combine multi-country

data or examine relationship marketing in non-US settings. In this review, we report the

nature and the findings of these studies and discuss their implications for future research

and marketing practice. It is apparent from this review that, despite the increasing

importance of international marketing, insufficient attention is being paid to exploring and

theorizing relationship marketing in international contexts. Furthermore, limited effort in

validating domestic findings in international settings circumscribes the universalapplicability and managerial relevance of relationship marketing studies.

Everyone's tried it; it's the most popular fizzy drink in the world and its stocked

everywhere, all over the world - in your local newsagent, at the supermarket, at the cinema,

on the plane - everywhere. We've all heard how Coca-Cola can dissolve a tooth if its left in

a glass of coke for several days but Coke's sales still remain sky high and it remains an icon

and symbol of modern America.

Coca-Cola has a unique taste and to be completely honest I would describe it as unnatural.

Most other soft drinks are made from a fruit, even though they contain hardly any of it. For

example all the Tango drinks are made up of fruits, Sprite is made from lemons and limes.

But Coke is not well made from any fruit, its just Coke.

Guzzling down Coke when thirsty will not quench your thirst, although it will feel like it is

quenching your thirst. The truth is that Coca-Cola actually makes you thirstier, like most

fizzy drinks. As you'll probably know the best thing to drink when really thirsty is water.

And if not water a still orange squash should do the trick. A hot cuppa tea also apparently.

1


2/96


CONTENTS

CHAPTER-I Pg.No.

INTRODUCTION 8MODERN TRADE 14IMPACT OF MODERN TRADE ON FMCG 16LIMITATIONS OF THE STUDY 19SCOPE OF THE STUDY 20RESEARCH METHODOLOGY 21

CHAPTER-II

REVIEW OF LITERATURE 23

CHAPTER-III

COMPANY PROFILE 46

CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION 66

CHAPTER-VSUGGESTIONS AND RECOMMENDATIONS 95FINDINGS 96SUGGESTIONS 97CONCLUSIONS 98

CHAPTER-VI

BIBILOGRAPHY 101

2


3/96


CHAPTER -1

INTRODUCTION

3


4/96


CHAPTER-I

INTRODUCTION

Marketing is fast moving and exciting activity in every body activates. The sellers,

distributors, advertising agencies, consultants, transporters, financers, store agencies and

every one as a counter are part of the marketing system. Any exchange process be it

consumer, goods, intermediary goods, services of ideas, comes under the preview of

marketing. It is very often regarded that the development of markets and marketing is

synonymous with the economic development of account. Through marketing is an age-old

activity: it has developed recently as an action discipline. In the ever-growing corporate

world, marketing is being regarded as a crucial element for the success of an Enterprise.

There are many definitions of marketing, defined by several marketing experts,

Marketing is the social process by which individuals and groups obtain what they need and

want through creating and exchanging products and value with others

Kotler.

Marketing is the management process that identifies, anticipates and satisfies customer

requirements profitably

The Chartered Institute of Marketing (CIM).

The right product, in the right place, at the right time, at the right price -

Adcock.

Marketing is essentially about marshalling the resources of an organization so that they

meet the changing needs of the customer on whom the organization depends -

4


5/96


Palmer.

Marketing is the process whereby society, to supply its consumption needs, evolves

distributive systems composed of participants, who, interacting under constraints -

technical (economic) and ethical (social) - create the transactions or flows which resolve

market separations and result in exchange and consumption.

Bartles.

Marketing is the process by which companies determine what products or services

may be of interest to customers, and the strategy to use in sales, communications and

business development. It is an integrated process through which companies create value for

customers and build strong customer Relationships in order to capture value from

customers in return.

Marketing is used to identify the customer to keep the customer, and to satisfy the

customer. With the customer as the focus of its activities, it can be concluded that

marketing management is one of the major components of business management. The

evolution of marketing was caused due to mature markets and over capacities in the last 2-

3 centuries. Companies then shifted the focus from production to the customer in order to

stay profitable.

The marketing discipline is undergoing fresh reappraisal in the light of the vast

global, technological, economic and social challenges facing todays companies and

countries. Marketing at its best is about value creation and raising the worlds living

standards. Todays winning companies are those who succeed most in satisfying, indeed

delighting their target customers.

5


6/96


MARKETING CONCEPT

The marketing concept is a philosophy. It makes the customer, and the satisfaction of his or

her needs, the focal point of all business activities. It is driven by senior managers,

passionate about delighting their customers.

The term marketing conceptholds that achieving organizational goals depends on knowing

the needs and wants of target markets and delivering the desired satisfactions. It proposes

that in order to satisfy its organizational objectives, an organization should anticipate the

needs and wants of consumers and satisfy these more effectively than competitors

Marketing focuses on the satisfaction of customer needs, wants and requirements.

The philosophy of marketing needs to be owned by everyone from within the

organization.

Future needs have to be identified and anticipated.

There is normally a focus upon profitability, especially in the corporate sector.

However, as public sector organizations and not-for-profit organizations adopt the

concept of marketing, this need not always be the case.

More recent definitions recognize the influence of marketing upon society.

EVOLUTION OF MARKETING

An orientation, in the marketing context, relates to a perception or attitude a firm holds

towards its product or service, essentially concerning consumers and end-users.

Throughout history marketing has changed considerably as consumer tastes are changing

faster

Marketing practice tended to be seen as a creative industry in the past, which included

advertising, distribution and selling. However, because the academic study of marketing

makes extensive use of social sciences, psychology, sociology, mathematics, economics,

anthropology and neuroscience, the profession is now widely recognized as a science,

6


7/96


allowing numerous universities to offer Master-of-Science (MSc) programmes. The

overall process starts with marketing research and goes through market segmentation,

business planning and execution, ending with pre and post-sales promotional activities. It is

also related to many of the creative arts. The marketing literature is also adept at re-

inventing itself and its vocabulary according to the times and the culture.

EARLIER APPROACHES

The marketing orientation evolved from earlier orientations namely the production

orientation, the product orientation and the selling orientation.

Orientation Profitdriver

Western

European

timeframe

Description

ProductionProduction

methods

Until the

1950s

A firm focusing on a production orientation specializes

in producing as much as possible of a given product or

service. Thus, this signifies a firm exploiting

economies of scale, until the minimum efficient scale

is reached. A production orientation may be deployed

when a high demand for a product or service exists,

coupled with a good certainty that

consumer tastes do not rapidly alter (similar to the

sales orientation).

Product Quality

Of the

product

Until the

1960s

A firm employing a product orientation is chiefly

concerned with the quality of its own product. A firm

would also assume that as long as its product was of a

high standard, people would buy and consume the

product.

Selling Selling

methods

1950s and

1960s

A firm using a sales orientation focuses primarily on

the selling/promotion of a particular product, and not

determining new consumer desires as such.

Consequently, this entails simply selling an already

7


8/96


existing product, and using promotion techniques to

attain the highest sales possible.

Such an orientation may suit scenarios in which a firm

holds dead stock, or otherwise sells a product that is in

high demand, with little likelihood of changes in

consumer tastes diminishing demand.

Marketing

Needs and

wants of

customers

1970 to

present

day

The marketing orientation is perhaps the most

common orientation used in contemporary marketing.

It involves a firm essentially basing its marketing plans

around the marketing concept, and thus supplying

products to suit new consumer tastes. As an example, a

firm would employ market research to gauge consumer

desires, use R&D to develop a product attuned to the

revealed information, and then utilize promotion

techniques to ensure persons know the product exists.

CONTEMPORARY APPROACHES

8


9/96


Recent approaches in marketing are the relationship marketingwith focus on the customer,

the business marketingorindustrial marketingwith focus on an organization or institution

and the social marketingwith focus on benefits to the society. New forms of marketing

also uses the internet and are therefore called internet marketing or more generally e-

marketing, online marketing, search engine marketing, desktop advertising or affiliate

marketing. It tries to perfect the segmentation strategy used in traditional marketing. It

targets its audience more precisely, and is sometimes called personalized marketing or one-

to-one marketing.

MODERN TRADE

Orientation Profit driver

Western

European

timeframe

Description

Relationship

marketing/

Relationship

management

Building and

keeping good

customer

relations

1960s to

present

day

Emphasis is placed on the whole relationship

between suppliers and customers. The aim is to

give the best possible attention, customer

services and therefore build customer loyalty.

Business

marketing/

Industrial

marketing

Building and

keeping

relationships

between

organizations

1980s to

present

day

In this context marketing takes place between

businesses or organizations. The product focus

lies on industrial goods or capital goods than

consumer products or end products. A different

form of marketing activities like promotion,

advertising and communication to the customer

is used.

Social

marketing

Benefit to

society

1990s to

present

day

Similar characteristics as marketing orientation

but with the added proviso that there will be a

curtailment on any harmful activities to society,

in either product, production, or selling methods.

9


10/96


Modern Trade is the process of doing business by utilizing and

implementing latest trends in the business with the help of technology to reach the target

customer.

Now a days each and every one in the market is implementing these practices and having

successful business.

Modern format retail is witnessing phenomenal growth, driven by the impact of increasing

urbanization, the new well-traveled, knowledgeable Indian consumer and a youth-driven

culture. In its official estimate for the current fiscal ending in March, the government said

that the economy, Asia's fourth largest, was expected to grow at 9.2 per cent.

All these factors are rapidly changing the needs and aspirations of consumers. Schedules

are also getting tighter, with the time for professional commitments and regular chores

getting limited. Hence, the "convenience" factor has a major influence on purchase

decisions.

Modern trade, the characteristic of which is having everything under one roof and with agreat array of products displayed in an uncluttered fashion where the touch and feel factor

prevails, is providing an environment to access products driven by convenience and

fashion.

EVOLUTION OF MODERN TRADE

When we discuss modern trade, the terms large-scale; modern-formatand organized

are used rather synonymously in India. However, the three terms need not

necessarily mean the same thing.Large-scale refers to the scale of operation of retail

business - which in turn implicitly refers to a chain of stores. Modern-format

basically refers to self-service. However, many of the self-service stores which call

themselves Supermarkets, are in the range of 500 sq.ft. or less in size and are

10


11/96


nothing more than independent mom-and-pop stores. And organized retailtypically

means large-scale chain stores which are corporatized, apply modern-management

techniques and are very likely to be self-service in nature. Most of the estimates of

organized retailmarket size refer to only large-scale retail. For us modern-retailin

this paper means self-service in both large-scale as well as small-scale.

Contrary to the popular view where-in all credit for growth of modern retail goes to

the consumer and their increasing purchasing power, it is found that consumers

manufacturers and retailers all three have been impacting the evolution process.

MODERN TRADE IN INDIA

Indiaonce again topped the world in the ACNielsen Consumer Confidence Index for the

third time in a row since the index was established in early 2005, with the highest score of

181 in the last leg of the survey, conducted in November 2009.

Strong economic growth has brought with it new sets of Indian consumers. The booming

young adult population with unprecedented levels of disposable income is more conscious

of the latest trends and fashion. Enhanced media penetration and greater connectivity also

are making consumers more knowledgeable and discerning.

Modern trade is an old saga in India with about 7.8 million retail stores, but most of those

are traditional ones, which only recently started making way for hypermarkets,

supermarkets and specialty stores. Modern trade in India is witnessing tremendous growth,

especially in Tier I cities

It accounts for 4 per cent of urban FMCG sales but for the top 15 metros it is about 10.7 per

cent of the total FMCG sales. For South Indian metros it touches about 19 per cent, because

modern trade started there a little earlier. There are more than 3,840 modern trade stores inIndia now.

IMPACT OF MODERN TRADE ON FMCG

11


12/96


Looking at the kind of consumer patronage a modern trade format store has in terms of an

urban population growing rich, there are a few segments in the FMCG range of products

that have experienced good growth from the modern trade format. In the food segment,

processed food products (23 per cent), impulse food products (32 per cent) and packaged

grocery (38 per cent) are the segments that have witnessed immense growth from urban

Indian modern stores.

Similarly, in the home and personal care segments it is household cleaning products (38.1

per cent), fabric care (23 per cent) and categories related to grooming, viz. hair care (28.3

per cent), fragrances (26 per cent) and skin/body care (23 per cent) that have recorded

considerable growth from urban modern format stores.

An increasing number of working women and nuclear families are some reasons behind the

growth in the food categories. Packaged grocery is a very convenient product for people

who are busy and hence we see it doing so well. Again the young adult population of India

is ambitious and hard working, and has the money to spend on lifestyle. They are brand-

conscious and aware of what their counterparts in the West are wearing and buying.

No wonder products related to grooming like like skin care, hair care, and fragrances, or,

for that matter, products like household cleaners are witnessing growth. These consumersrepresent the target for manufacturers and retailers, who want to capture a share of the

booming consumer markets in India. Manufacturers, on their part, are investing

aggressively to capture the minds of today's and tomorrow's generations.

With more modern format stores setting up shop in the country we are also witnessing an

expansion in these segments in terms of availability of innovative packaging sizes, product

innovation and overall ranges.

Modern trade and food as a category: Food accounts for about 48 per cent of FMCG sales

in the country and for modern trade the number is even higher, at 51.3 per cent. Like other

Asia-Pacific markets, in India too, among the processed food segments, the breakfast

cereals category is exhibiting a stupendous 40 per cent growth rate. Other growing

12


13/96


categories are biscuits (26 per cent), vermicelli & noodles (28 per cent), beverages (24 per

cent) and ketchup and sauce (29 per cent).

Indians have an old fascination for home-cooked food, especially when it comes to lunch

and dinner. With the changed lifestyle, the trend is changing and people have started

showing interest in ready-to-cook foods. However, even today a majority of these

consumers are willing to restrict the experiment to packaged foods and accompaniments

meant for breakfast and snack time.

Chocolates (28 per cent) and namkeens (37 per cent) are two major categories of impulse

food products showing good growth, along with packaged rice (92 per cent) in the

packaged grocery segment.

Modern trade and home and personal care products (H&PC): As far as H&PC is concerned,

from modern trade it has witnessed a growth rate of about 23 per cent, which is at par with

the overall growth. Modern trade brings with it a great shopping experience, with good

product displays, making selection far easier.

Under household cleaners it is floor cleaners (88 per cent) and toilet cleaners (37 per cent)

that are growing well; in hair care, it is hair conditioners (43 per cent) and hair oil (35 per

cent), and for the skin care segment, it is skin creams (35 per cent) that are driving the

H&PC sales in modern stores.

With the overall economy doing well and basic necessities mostly taken care of, people are

now more keen to look and feel good and are ready to devote time and money on that.

Unlike in the past, when there was one product used for all household cleaning, people now

are willing to experiment with specific products meant for cleaning glasses, utensils, floors,

etc.

THE emergence of modern trade (or organized retail) is currently the biggest challenge

facing FMCG manufacturers, who could see increasing pressure on sales margins as a

result.

13


14/96


Citing as an example the situation in the US where retailer Wal-Mart is much bigger than

any of the FMCG companies, he said such a scale would give modern trade the power to

negotiate. "Today, I give 13 per cent (margin). Modern trade won't settle for anything less

than 20 per cent," he said, addressing students of the ICFAI Business School as part of a

BL Club lecture.

The nearly Rs 52,000-crore Indian FMCG market is still predominantly driven by the

traditional retail format, which accounts for 97 per cent of the category sales. Modern trade

has made some strides; it accounted for 6 per cent of the FMCG sales in urban India in

2004, compared with 2 per cent in 2003.

14


15/96


LIMITATIONS OF THE STUDY

The following are some of the major limitations of the study.

Even though every effort is made to complete all areas of the project: it still has

its own limitations. Due to cost and time constraints the sample size was

restricted to 32 store managers.

This study is pertaining to certain organization that is Hindustan Coco Cola

Beverages Pvt Ltd. The results may not be applicable to other organization and

it is strictly for the academic purpose only.

The tools used for analysis has its own limitations.

Managers have got their own limitations in regards to some questions like store

sales information etc..

The store mangers were not co-operated properly because of time.

NEED FOR THE STUDY:

A study on the Promotional Strategies can help us to know the customers reaction and

response towards the offers and all promotion activities about COKE products and the

perception of the target customer. It can also useful to know the services that can

provide by the company to the customers, in increase of sales of the company and

create a brand image.

15


16/96


OBJECTIVES

1. To identify the taste and preferences of the target customers

2. To know the customers reaction about coke offers.

3. To know the competitors promotional strategies.

4. To know the customer satisfaction towards coke products

5 To know the modern trade characteristics

6 To know the coke share in the store.

7 To know the coke sales in 32 outlets.

8 To know the customers perception.

SCOPE OF THE STUDY

This Study consists around 32 outlets in Hyderabad. This ultimate task was to

identify customers perception regarding the switchgear products of the company. This

study also consists of development suggestions and modifications given by the customers

16


17/96


RESEARCH METHDOLOGY

QUESTIONNAIRE DESIGN

Questionnaire is the heart of the survey operation. This is a structured questionnaire,

which has been framed for conducting the survey. The questionnaire was presented with

exactly the same wordings and in the same order to all of the respondents.

DATA COLLECTION

Data refers to information or facts. It includes numerical figures, non-numerical

figures, descriptive facts and qualitative and quantitative information. The task of data

collection begins after a research problem has been defined and research problem has beendefined and research plan has been decided.

Data could be broadly classified as follows:

Primary data

Secondary data

PRIMARY DATA

Primary data is known as the data collected for the first time through field

surveys and thus happens to be original in character. Such data are collected with

17


18/96


specified set of objectives to assess the current status of any variables studied. The

primary data used for this project was collected using questionnaires. The information

was collected from the store managers of Food World Outlets.

SECONDARY DATA

Secondary data refers to the information or facts already collected

and available for reference from sources such as library, website etc. Secondary data about

the company profile and other details were collected from the company website and

through personal discussion with the company human resource manager.

The secondary data on the other hand, are those which have already been

collected by someone else and which have already been passed through the statistical

reports.

The sources of gathering secondary data are detailed as follows:

1. The companys annual records

2. The companys trade journals

3. Company manuals and magazines

4. Websites

SAMPLING PROCEDURE

Purposive sampling is the sampling procedure used in the survey. This method

of sampling involves selecting the sample elements using some convenient method with

out going through the rigors of sampling method. There researcher may make use of

any convenient base to select the requires number of samples. The procedure is known

as non-probability sampling technique.

18


19/96


PERIOD OF STUDY

The period of study was limited to two months &during that period the following

steps were under taken:

Objectives were set and questionnaire was finalized.

Data were collected and recorded.

Data was analyzed and interpreted.

Reports were discussed with the management for further reference.

SAMPLE SIZE

Due to the time and resource constraints the sample size of the research has been

restricted to 29respondents.

19


20/96


SAMPLE UNIT

Sample size : 15( 32 samples)

Sample element : Food World out lets

Sample unit : customers of the outlet

Sample area : Hyderabad

20


21/96


CHAPTER-II

REVIEW OF LITERATURE

21


22/96


THEORETICAL FRAME WORK

Promotion is the process of taking the product to a next level in the hierarchy of

product sales by using latest trends and practices of marketing.

What is Promotion?

Promotion:Promotion decisions are those related to communicating and selling to

potential consumers. Since these costs can be large in proportion to the product price, a

break-even analysis should be performed when making promotion decisions. It is useful to

know the value of a customer in order to determine whether additional customers are worth

the cost of acquiring them.

Promotion decisions involve advertising, public relations, media types, etc.

Promotion comes under MARKETING MIX , it is an element of marketing mix.

Marketing decisions generally fall into the

following four controllable categories:

Product

Price

Place

Promotion

These four P's are the parameters that the marketing manager can control, subject to the

internal and external constraints of the marketing environment. The goal is to makedecisions that center the four P's on the customers in the target market in order to create

perceived value and generate a positive response

There are so many decisions that can be taken by the marketing manager to decide about

the market conditions of the product and also about the sales of the product.

22


23/96


The ingredients in Borden's marketing mix included product planning, pricing, branding,

distribution channels, personal selling, advertising, promotions, packaging, display,

servicing, physical handling, and fact-finding and analysis. E. Jerome McCarthy later

grouped these ingredients into the four categories that today are known as the 4 P's of

marketing, depicted below:

PROMOTION DECISIONS

In the context of the marketing mix, promotion represents the various aspects of marketing

communication, that is, the communication of information about the product with the goal

of generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.)

Advertising

Personal selling & sales force

Sales promotions

Public relations & publicity

Marketing communications budget

Promotional strategies and practices:

PROMOTION:

Telling the customer about the product

Promotion is typically sub-divided into

o Mass Selling

Advertising - which you pay for

Publicity - which is free

o

23


24/96


o Sales Promotion

Stuff you do in the store to get the customer to try the product

Contests, coupons, free samples

o Personal Selling

Direct contact person2person with a potential customer

Sometimes for large industrial sales

Sometimes for high quality consumer products, like selling a car

Where and when can you get across your marketing messages to your target

market?

Will you reach your audience by advertising in the press, or on TV, or radio, or on

billboards? By using direct marketing mailshot? Through PR? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any

wider environmental issues that suggest or dictate the timing of your market launch,

or the timing of subsequent promotions?

How do your competitors do their promotions? And how does that influence your

choice of promotional activity?

PROMOTION STRATEGIES

A successful product or service means nothing unless the benefit of such a service can be

communicated clearly to the target market. An organizations promotional strategy can

consist of several aspects as follows.

Advertising: Is any non-personal paid form of communication using any form of mass

media.

Public relations: Involves developing positive relationships with the organization media

public. The art of good public relations is not only to obtain favorable publicity within the

media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term. Could involve

using money off coupons or special offers.

24


25/96


Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an organization.

There has been a massive growth in direct mail campaigns over the last 5 years. Spending

on direct mail now amounts to 18 bn a year representing 11.8% of advertising expenditure

(Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases,

which contain names and addresses of potential customers.

Direct mail allows an organization to use their resources more effectively by allowing them

to send publicity material to a named person within their target segment. By personalizing

advertising, response rates increase thus increasing the chance of

improving sales.

Listed below are links to organization who's business involves direct mail.

Message & Media Strategy

An effective communication campaign should comprise of a well thought out message

strategy. What message are you trying to put across to your target audience? How will you

deliver that message? Will it be through the appropriate use of branding? Logos or slogandesign?. The message should reinforce the benefit of the product and should also help the

company in developing the positioning strategy of the product. Companies with effective

message strategies include:

Nike: Just do it.

Toyota: The car in front is a Toyota.

Media strategy refers to how the organization is going to deliver their message. What

aspects of the promotional mix will the company use to deliver their message strategy.

Where will they promote? Clearly the company must take into account the readership and

general behavior of their target audience before they select their media strategy. What

25


26/96


newspapers do their target market read? What TV programmes do they watch? Effective

targeting of their media campaign could save the company on valuable financial resources.

Push & Pull Strategies

There are three types of sales promotion strategies:

A push strategy

A pull strategy or

A combination of the two

A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell your

products and services to the consumer by offering various kinds of promotions andpersonal selling efforts. What happens here is that a company promotes their

product/services to a reseller who in turn promotes it to another reseller or to the consumer.

The basic objective of this strategy is to persuade retailers, wholesalers and distributors to

carry your brand, give it shelf space, promote it by advertising, and ultimately 'push' it

forward to the consumer. Typical push sales promotion strategies include; buy-back

guarantees, free trials, contests, discounts, and specialty advertising items.

A 'pull' sales promotion strategy focuses more on the consumer instead of the reseller or

distributor. This strategy involves getting the consumer to 'pull' or purchase the

product/services directly from the company itself. This strategy targets its marketing efforts

directly on the consumers with the hope that it will stimulate interest and demand for the

product. This pull strategy is often used when distributors are reluctant to carry or distribute

a product. Typical pull sales promotion strategies include; samples, coupons, cash refunds

or rebates, loyalty programs and rewards, contests, sweepstakes, games, and point-of-

purchase displays.

A 'combination' sales promotion strategy is just that; it is a combination of a push and a

pull strategy. It focuses both on the distributor as well as the consumers, targeting both

parties directly. It offers consumer incentives side by side with dealer discounts.

26


27/96


Communication by the manufacturer is not only directed towards consumers to create

demand. A push strategy is where the manufacturer concentrates some of their marketingeffort on promoting their product to retailers to convince them to stock the product. A

combination of promotional mix strategies are used at this stage aimed at the retailer

including personal selling, and direct mail. The product is pushed onto the retailer, hence

the name. A pull strategy is based around the manufacturer promoting their product

amongst the target market to create demand. Consumers pull the product through the

distribution channel forcing the wholesaler and retailer to stock it, hence the name pull

strategy. Organizations tend to use both push and pull strategies to create demand from

retailers and consumers.

Communication Model

AIDA is a communication model, which can be used by firms to aid them in selling their

product or services. AIDA is an Acronym for Attention, Interest, Desire, Action.. When a

27


28/96


product is launched the first goal is to grab attention. Think, how can an organization use

it skills to do this? Use well-known personalities to sell products? Once you grab attention

how can you hold Interest, through promoting features, clearly stating the benefit the

product has to offer? The third stage is desire, how can you make the product desirable to

the consumer? By demonstrating it? The final stage is the purchase action, if the company

has been successful with its strategy then the target customer should purchase the product.

Promotion through the Product life cycle

As products move through the four stages of the product lifecycle different promotional

strategies should be employed at these stages to ensure the healthy success and life of the

product .

Stages and promotion strategies employed.

Introduction

When a product is new the organizations objective will be to inform the target audience of

its entry. Television, radio, magazine, coupons etc may be used to push the product through

the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial

stage.

Growth

As the product becomes accepted by the target market the organization at this stage of the

lifecycle the organization works on the strategy of further increasing brand awareness to

encourage loyalty.

Maturity

28


29/96


At this stage with increased competition the organization take persuasive tactics to

encourage the consumers to purchase their product over their rivals. Any differential

advantage will be clearly communicated to the target audience to inform of their benefit

over their competitors.

Decline

As the product reaches the decline stage the organization will use the strategy of reminding

people of the product to slow the inevitable

Internet Promotion

The development of the World Wide Web has changed the business environment forever.

Dot com fever has taken the industry and stock markets by storm. The e-commerce

revolution promises to deliver a more efficient way of conducting business. Shoppers can

now purchase from the comfort of their home 24 hours a day 7 days a week.

29


30/96


Owning a website is a now a crucial ingredient to the marketing mix strategy of an

organization. Consumers can now obtain instant information on products or services to aid

them in their crucial purchase decision. Sony Japan took pre-orders of their popular

Playstaion 2 console over the net, which topped a 1 million after a few days, European

football stars are now issuing press releases over the web with the sites registered under

their own names. Hit rates are phenomenal.

Advertisers have now moved their money over to the internet as customers are on average

spending more time online then watching TV. Popular ways to advertise seem to be with

banners and pop ups.

Everyone sees hundreds of commercial messages every day. Here are a few tips on

different avenues which may help your message cut through the promotional clutter .

1. Media Releases.

There is a lot of media out there, and it's expanding all the time. It has be filled with

something, why shouldn't it be a story about you? If you can spin your sales story into an

interesting news story there's a good chance you will receive some coverage. But that's the

thing. It has to be interesting. Look for an angle and present it the right way and there's

every chance the local media will lap it up.

2. Event Invitations.

If you're staging an event, make it one people will talk about and look forward to. Treat

your clients like friends, not wallets. And here's a tip from a long established catering

company we do work for: when the pary starts to lag, roll out the French Champagne. Yes

it can cost you, but there's something in that stuff which makes people happy. Everyone

will be happy to knock a couple of glasses back if they know it's the real deal!

3. Networking.

If you attend networking functions, which are all the rage at the moment (we get invited to

about six a week!), when it's your turn to stand up and introduce yourself, make sure you've

got a gimmick on hand. It's a strange thing, that the larger the group of people you have on

hand, the simpler the jokes which work. Later on, when you're working the room you'll

30


31/96


have something to chat about and even if nobody remembers what you were trying to

promote, they will remember you.

4. Response to Inquiries.

When you get a good lead through whatever channel, send back your response in an

interesting and unforgettable way. Put your proposal in an empty pizza box and bribe a kid

from Dominos to deliver it. Send one of those mobile coffee vans around and shout the

team at the other company a coffee each. Have your quote written on the icing of a cake

and hand delivered. Sounds stupid? Maybe, but when you talk to your prospective client

next you have the beginnings of a relationship and may have turned a simple inquiry

response into something resulting in everyone with the other group knowing who you are.

5. Sales Pitches.

Intrigue your prospective clients. A local sales legend in Brisbane used to ring for an

appointment and announce, "I'm coming 'round now and I'm bringing morning tea". He

would arrive with two cream buns in a paper bag. He always claimed that if he could get

the person he was visiting to eat their cream bun he would get them as a new client.

Nobody ever forgot the sight of this bloke appearing at the door with two buns in a brown

paper bag.

6. Sales Letters.

There's nothing more boring than a sales letter which just babbles on about how great you

are. What would anyone expect you to say? It's a constant battle to stop people demanding

promotional sales letters that are heavy on product features and details. Here's a

promotional idea we're about to try. Go to the back and buy a wad of some virtually

worthless currency; Zimbabwe Pounds, Turkmanistan Roubles, New Zealand Dollars (only

joking guys) whatever you can lay your hands on, but make sure the demoninations are big.

Dream up a spin to your letter which is related to cash/money/income. Attach one of the

banknotes to the letters you send it out. Who, other than the government, is going to throw

away money? And if you buy the right dud currency it costs about the same per sheet as

printing a letter.

7. Follow-up Letters.

Once you've spoken with a client and had your first meeting, make sure you follow up by

mail, if only to cover off the subjects you discussed. People don't want to deal with

31


32/96


slackers, sending a letter after your meeting looks professional and sets the stage for further

contact.

8. Surveys.

Companies wishing respondents to fill out a questionnaire are more likely to get results

when they attach a bribe. Just by adding a pen to the package you can expect a 30 percent

better response.

9. Talk to Fresh Promotions

As one of Australia's most innovative sales promtion and marketing groups, we are always

interested in hearing new ideas or dreaming up new ones which will work for your

business. If you have a promotional idea for your business, or want one, give us a call. We

specialize in getting your ideas happening on budget and on time.

10. Talk to us!!

PromoSales consultants are happy to have a chat about what you need from you promotion.

We are always interested in hearing from you and want to see your promotion succeed.

SALES PROMOTION STRATEGY

Sales are the lifeblood of a business, without sales there would be no business in the first

place; therefore it is very important that if a business wants to succeed, it should have a

sales promotion strategy in mind. The primary objective of a sales promotion is to improve

a company's sales by predicting and modifying your target customer's purchasing behavior

and patterns. Sales promotion is very important as it not only helps to boost sales but it also

helps a business to draw new customers while at the same time retaining older ones. There

are a variety of sales promotional strategies that a business can use to increase their sales,

however it is important that we first understand what a sales promotion strategy actually isand why it is so important.

A sales promotion strategy is an activity that is designed to help boost the sales of a product

or service. This can be done through an advertising campaign, public relation activities, a

free sampling campaign, a free gift campaign, a trading stamps campaign, through

32


33/96


demonstrations and exhibitions, through prize giving competitions, through temporary

price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails.

The importance of a sales promotion strategy cannot be underestimated. This is because a

sales promotion strategy is important to a business boosting its sales.

When developing a sales promotion strategy for your business, it is important that you keep

the following points in mind.

Consumer attitudes and buying patterns

Your brand strategy

Your competitive strategy

Your advertising strategy

And other external factors that can influence your products availability and pricing.

METHODS OF PROMOTION

Some of the most common methods used in sales promotion strategies include:

Coupons

Price discounting

Gift with purchase offers

Sweepstakes

Sampling

Mail in offers and rebates

Refund and premium offers

Group promotions

Frequent user/loyalty incentives

Point-of-sale displays

Sponsorships for special events (like fun runs)

33


34/96


Participation in community projects and boards of directors

Trade Shows - Your product or service might be one that is suited to exhibiting at a

trade show attended by your target audience. Trade shows are typically one- or two-

day events that allow businesses to set up exhibits or booths showcasing their

products or capabilities.

Fairs (like Health Fairs, Job Fairs)

Give-aways (like baseball caps and mugs with your logo)

Coupons and free samples

Conducting contests

Public Speaking and Conferences

Newsletters

Trade journals

Media Relations Campaigns

Representation by experts

Public service announcements

Press kits

PROMOTIONAL OBJECTIVES

To promote your business successfully, you have to understand who you need to reach and

what you are trying to achieve.

Promotional strategies should focus first and foremost on your existing customers. Make

sure they are aware of the full range of your products and services and create opportunities

to generate repeat and higher value purchases. You should also be getting your existing

customers to spread the word about your business - perhaps by trying out new products and

services and offering rewards for introducing new customers.

When focusing your promotional activities on potential customers, aim to create brand

awareness and credibility. Ensure they understand your offer and how you differ from your

competitors. Once you really get into detail, you might even find yourself promoting

individual products differently to different groups of customers.

34


35/96


If you use intermediaries to reach your market, you will also have to encourage them to

promote your offer to their customers.

COCA-COLA INDIA CEO REVEALS AGGRESSIVE PROMOTION STRATEGIES

Atul Singh, CEO and president of Coca-Cola India, reveals his strategies for aggressively

promoting the brand across the country. Singh says the company is training shop owners to

promote the brand in order to encourage more Indians to drink Coca-Cola Co. products.

35


36/96


CHAPTER-III

COMPANY PROFILE

INTRODUCTION FOR COCA COLA COMPANY

You may know The Coca-Cola Company...

... as the largest beverage company with the most extensive distribution system in the

world. You may know us simply as Coca-Cola--the world's most valuable brand and a

global icon.

36


37/96


The Coca-Cola Company is the worlds leading manufacturer, marketer, and distributor of

nonalcoholic beverage concentrates and syrups. Its world headquarters is based in Atlanta,

Georgia. The company and its subsidiaries employ nearly 31,000 people around the world.

The Coca-Cola Company manufactures syrups, concentrates and beverage bases for Coca-

Cola, the companys flagship brand, and also produces over 230 other soft-drink brands

sold by and its subsidiaries in nearly 200 countries around the world. Some of Coca-Colas

latest domestic marketing strategies include Coke dominating fountain sales. Thousands of

consumers visit fast-food restaurants every day and Coke feels that it is very important to

have the consumer see and drink their product at such chains as McDonalds, Burger King,

and Dominos Pizza. Coca-Cola is also testing a new plastic cup in the famous Coca-Cola.

Let us introduce you to The Coca-Cola Company you may not know.

The Coca-Cola system's customers are the grocers, retailers, street vendors and store

owners who sell our products to our consumers. We have millions of these partners in the

more than 200 countries where we operate.

The Coca-Cola Company was first established in 1886 by Dr John Styth Pemberton.

Today, the company is the world's leading manufacturer in the beverage industry, operating

globally in more than 200 countries with its head office located in Atlanta, USA. Itproduces more than 300 beverage brands and over 1.06 billion drinks are consumed per day

around the world.

Mission Statement

The Coca-Cola Company's mission statement is:

'Remind Coca-Cola is the read thing' but their motto now has changed to 'To benefit and

refresh everyone who is touched by our business.'

Also Coca-Cola would hope to provide the best quality drink for everyone, all the

employees working for them being at their top and fullest.

37


38/96


Approximately 50 billion times a day, someone drinks a beverage. Our beverages are

enjoyed more than 1.3 billion of those times. That means there are over 48 billion beverage

choices to capture.

We built on our formidable assets: our brands, financial strength, unrivaled

distribution system and our people. And we have made progress toward sustainable growth.

We sharpened our focus on what the world wants to drink and why, and we

continued our efforts with local leaders to support communities around the world.

We have a lot of good news to share, and we're just getting started.

The Coca-Cola Company manufactures, distributes, and markets nonalcoholicbeverage concentrates and syrups worldwide. It principally offers sparkling and still

beverages. The companys sparkling beverages include nonalcoholic ready-to-drink

beverages with carbonation, such as energy drinks, and carbonated waters and flavored

waters.

Its still beverages consist of nonalcoholic beverages without carbonation, including

non-carbonated waters, flavored waters and enhanced waters, juices and juice drinks, teas,

coffees, and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups,

and concentrates, such as flavoring ingredients and sweeteners.

The company markets its nonalcoholic beverages under the Coca-Cola, Diet Coke,

Fanta, and Sprite brand names. The Coca-Cola Company also owns mineral water brands

Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa in Finland. It sells

its finished beverage products primarily to distributors, and beverage concentrates and

syrups to bottling and canning operators, distributors, fountain wholesalers, and fountain

retailers. The company was founded in 1886 and is headquartered in Atlanta, Georgia.

The Coca-Cola Company's products include beverage concentrates and syrups, with the

main product being finished beverages.

38


39/96


The business has over 300 brands of beverages around the world with the main ones being

Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.

The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 liters,

1.25 liters, 600mL and 300mL. These are also available in aluminium cans of 375mL.

Coca-Cola is the most well known trademark, recognized by 94 per cent of the world's

population. The business is very successful and holds a very good reputation.

The Coca-Cola Company uses marketing strategies to differentiate its product from its

competitors to gain a competitive advantage. These are listed in the table below.

The Coca-Cola Company.

In 1886, we introduced Coca-Cola to Atlanta, Georgia. One product, a simple moment of

refreshment. In 120 years, a lot has changed. We now have more than 400 brands in over

200 countries.

The real story of The Coca-Cola Company lies in what we're doing today to build asustainable-growth business for tomorrow.

What does sustainable growth look like to us? In 2005, we mapped a long-term plan for our

business, Our Manifesto for Growth. It includes working closely with our bottling partners

in the following key areas:

People: We want to be a great place to work, where people are inspired to be the best they

can be.

Portfolio: We bring to the world beverage brands that anticipate and satisfy people's desires

and needs.

39
http://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_people.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_portfolio.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_people.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_portfolio.html


40/96


Profit: We strive to provide maximum return to our shareowners while being mindful of

our overall responsibilities.

Partners: We actively nurture a winning network of partners and build mutual loyalty.

Planet: We act as a responsible global citizen who makes a difference.

Sustainable growth means meeting our short-term commitments while investing to meet

our long-term goals. We are beginning to see results.

On the pages that follow, we'll discuss how our plan is changing the way we think and the

way we operate, and you'll see evidence of the progress we're

The Coca-Cola Company brands include:

Barq's

Coca-Cola

Coke Zero

Dasani water

Diet Coke

Glacau Fanta

Fresca

Full Throttle

Fuze

Hi-C

Kinley

Lift

Lilt

Mello Yello

Minute Maid

Monster Energy distributed by Coca-Cola, made by Hansen Natural

Oasis

40
http://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.html#partnershttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_planet.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.htmlhttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_profit.html#partnershttp://www.thecoca-colacompany.com/investors/annualandotherreports/2005/companyToday_planet.html


41/96


Odwalla

Powerade

Pibb

Relentless

Sprite

Tab

Thums Up

Urge

Vault

1886 - Drink

Slogans from the 1900's

1904 - Delicious and Refreshing

1905 - Wherever you go ... you will find

1905 - Revives and Sustains

1906 - The drink of quality. The Great National Temperance

1907 - is full of vim, vigor and go

1908 - Get the genuine

1909 - Whenever you see an arrow, think of

1911 - Enjoy a glass of liquid laughter

41


42/96


1917 - Three Million A Day


1920 - Drink with soda, The hit that

saves the day

1922 - Thirst knows no season

1923 - Refresh yourself, There's nothing like it when you're thirsty

1924 - Pause and refresh yourself

1925 - Six Million A Day

1926 - Stop at the red sign

1927 - Around the corner from anywhere, at the little red sign

1928 - A pure drink of natural flavors

1929 - The pause that refreshes


1930 - Meet me at the soda fountain

1932 - The drink that makes the pause refreshing

1933 - Don't wear a tired, thirsty face

1934 - When it's hard to get started, start with a

1935 - All trails lead to ice-cold

1936 - Get the feel of wholesome refreshment

42


43/96


1937 - Stop for a pause...go refreshed

1938 - Anytime is the right time to pause and refresh, Pure as sunlight

1939 - Thirst stops here. Makes travel more pleasant.


1940 - The package that gets a welcome at home

1941 - A stop that belongs on your daily timetable

1942 - The only thing like is itself

1943 - A taste all its own

1944 - High sign of friendship

1945 - Coke means

1947 - Relax with the pause that refreshes

1948 - Where there's there's Hospitality

1949 -Along the highway to anywhere


1950 - Help yourself to refreshment

1951 - Good food and just naturally go together

1952 - Coke follows thirst everywhere

43


44/96


1953 - Dependable as sunrise

1954 - For people on the go

1955 - Americas preferred taste

1956 - Feel the difference, Makes good things taste better

1957 - Sign of good taste

1958 - Refreshment the whole world prefers

1959 - Make it a real meal


1960 - Relax with a Coke, Revive with a Coke

1961 - Coke and food

1962 - Enjoy that refreshing new feeling

1963 - Things go better with Coke

1964 - You'll go better refreshed

1965 - Something more than a soft drink

1966 - Coke...after Coke...after Coke

Coca-ColaJingles

These Jingles are taken from '60s radio air checks.

Slogans From the 1970's

1970 - It's the real thing

1971 - I'd like to buy the world a Coke

44
http://www.geocities.com/backdoornetshopnet/cokejingles.htmhttp://www.geocities.com/backdoornetshopnet/cokejingles.htm


45/96


1972 - Coke . . . goes with the good times

1975 - Look up America, see what we've got

1976 - Coke adds life


1980 - Have a Coke and a smile

1982 - Coke is it

1985 - We've got a taste for you. America's real choice Classic!

1986 - Catch the Wave. Red, white and you!

1988 - Can't beat the feeling

1989 - Official Soft Drink of Summer


45


46/96


Ads of company

INDUSTRY PROFILE

The company's international blitz began in 1926 when company President

Robert Woodruff signed Coca-Cola as a sponsor of the 1928 Olympic Summer Games in

Amsterdam. The U.S. Olympic Team and 1,000 cases of Coca-Cola arrived at the games

46


47/96


by freighter. Since then, the relationship between the Olympic Games and Coca-Cola has

only grown!

Many Coca-Cola divisions around the world sponsor individual athletes or teams as well.

1928 was also the first year the Olympic flame was lit, and women were invited to

compete.

1952 -- The Summer Games in Helsinki - Coca-Cola shipped 300,000 cases of

bottles and donated it for sale by the Disabled Ex-servicemen's Association.

1952 -- The Winter Games in Oslo - The local Coca-Cola bottler chartered a

helicopter for advertising. In 1952 most people had never seen anything like a

helicopter and they were utterly fascinated. At the close of the games, the helicopter

was given to the city to help direct traffic.

1960 -- The Summer Games in Rome - Italian bottlers welcomed athletes, officials

and spectators to Rome with a 45 rpm record of "Arrivederci Roma."

1964 -- The Summer Games in Tokyo - This marked the first year Coca-Cola aided

the athletes, spectators and media with guide maps, sightseeing information and a

phrase book. The idea was so popular, it was adapted for use in Mexico City,

Sapporo (Japan) and Munich.

1979 -- The Coca-Cola company worked with the Olympic Committee to create the

U.S. Olympic Hall of fame.

1988 -- The Winter Games in Calgary - Coca-Cola orchestrated a world children's

chorus. Also, Coca-Cola opened the venue for what would later be deemed the

games number-one spectator sport -- The Coca-Cola Official Olympic Pin Trading

Center.

1996 -- The Summer Games in Atlanta - The Games' centennial, as sole sponsor of

the Olympic Torch Relay, Coca-Cola brought the flame to more than 350 cities and

47


48/96


towns during the 94-day run.

You may know someone who got to run with the flame! I was fortunate enough to

watch the flame's progress through Clark County, Indiana into Louisville,

Kentucky. I even got my picture taken with one of the runners, as I held the torch!!

AND I was there as the flame entered our nation's capital, Washington, D.C.

through Fairfax County, Virginia!

HISTORY OF COCA COLA

Olympic Commemorative Cans

1928

Amsterdam

1948

London

1964

Tokyo

1992

Barcelona

1996

Atlanta

48


49/96


A pharmacist named Dr. John Stith Pemberton invented the refreshing

taste of Coca-Cola in 1886. Concocted by a mixture of caramel-colored syrup in a three-

legged brass kettle while in his backyard. He then decided to try to market the drink at

Jacobs Pharmacy in his hometown of Atlanta, Georgia. For five-cents, customers were

able to enjoy a glass from the soda fountain. An average of nine drinks were sold a day. In

1891 Dr. John Stith Pemberton sold Coca-Cola for 2,300 to an entrepreneur named Asa G.

Candler. Within the next four years Coca-Cola was distributed throughout the whole

nation. 1893 the Cola-cola trademark and script were patented. The two Cs were though

to look well for advertising. In 1899 large-scale bottling becomes possible when Asa

Candler grants Joseph B. Whitehead and Benjamin F. Thomas exclusive rights for one

dollar. But in 1919 Coca-Cola was sold for $25million to a banker in Atlanta name Ernest

Woodruff and a group of investors. That same year, Coca-Cola sold its first share of stock

for forty dollars a share. Assuming all dividends were reinvested, those original shares

would have been worth approximately $6.7 million at the end of the year.

Coca-Cola (Coke), the worlds largest carbonated soft drink (CSD) manufacturer

had built its brand over the years through consistent and effective advertising campaigns

making history over the years. In the recent times the company had suffered serious

setbacks with a number of controversial and negative allegations leveled against it. Coke

was increasingly being associated with health hazards and was under threat in many of its

key markets. Consumption of CSD, which was its core business, had decreased and sales

fell in Western Europe, Philippines and India. Active anti-Coke movements had triggered

severe criticism from many segments of society including students, environmentalists,

Labor-rights activists, employees and shareholders. In 2004, Neville Isdell, Coke

Chairman and CEO devised a plan to revive Coke. Called the Manifesto for Growth, the

plan included several strategic initiatives including innovation, increasing marketing

investment and introducing new products in the non Carbonated Soft Drink market.

As part of the plan to revive the Coke brand, The Coke side of life, a new global

marketing platform was launched in December 2005. The company believed that this

global campaign would return the company to its former glory. Marketing experts were

49


50/96


however skeptical about this. They wondered if the new marketing campaign would help

offset the myriad charges that beset Coke and help to revive the brand.

The case enables students to appreciate the advertising campaigns that helped

build the Coca-Cola Company into a strong brand. It also enables discussion on the new

campaign launched by Coke and its effectiveness in overcoming its problems.

One great earmark that the Coca-Cola Company has is helping

the people of Atlanta. They accomplish this through scholarships, hotlines, donations and

contributions. Another large accomplishment that the Coca-Cola has, is being the first

company to make and use recycled plastic bottles. One way to see all of the achievements

of the Coca-Cola company is to visit the World of Coke in Atlanta. It houses a collection

of memorabilia, samples of the products, exhibits, and many other exciting items. All of

what has been said is the basis of what Coca-Cola was built on. Without societies help,

Coca-Cola could not have become over a 50 billion dollar business. Keep on consuming

the world's favorite soft drink, Coca-Cola.

Until the 1960s, both small town and big city dwellers enjoyed

carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the

drug store, the soda fountain counter served as a meeting place for people of all ages. Oftencombined with lunch counters, the soda fountain declined in popularity as commercial ice

cream, bottled soft drinks, and fast food restaurants came to the fore.

The term "soda water" was first coined in 1798.

In 1810, the first U.S. patent was issued for the manufacture of imitation mineral

waters.

The first soda fountain patent was granted to Samuel Fahnestock in 1819.

In 1858, G.D. Dows invented and operated the first marble soda fountain, which he

patented in 1863.

In 1883, James W. Tufts patented a soda fountain, which he called the Arctic. Tufts

went on to become a huge soda fountain manufacturer.

On January 25, 1870, Gustavus Dows patented a modern form of the soda fountain.

50


51/96


In October of 1874, Robert M. Green created the first ice cream soda.

In 1903, a revolution in soda fountain design took place with the front service

fountain patented by Dr. Heisinger.

More fun facts and trivia

Coca-Cola can be used to bake a ham. Pour one can into the baking pan, rap the

ham in aluminum foil, and bake. Thirty minutes before the ham has finished

cooking, remove the foil, allowing the drippings to mix with the Coca-Cola to

make a delicious brown gravy.

Mexico and Iceland have the highest per capita consumption ofCoca-Cola.

Coca-Cola translated to Chinese means, "To make mouth happy".

Every second over 7,000 Coca-Cola products are consumed. The tallest Coca-Cola bottling plants are in Hong Kong. The plant in Quarry Bay is

17 floors, and the plant in Shatin is 25 floors.

The bottling plant at the highest elevation in the world is located in Bolivia, at

12,000 feet.

The world's longest Coca-Cola truck is in Sweden. It is 79 feet long with a four-

azle trailer.

The best selling non-carbonated soft drink in Japan is a product of The Coca-ColaCompany named "Georgia", a coffee flavored beverage.

Coca-Cola first crossed the Atlantic on board the Graf Zeppelin, the German

dirigible.

51


52/96


The Varsity Restaurant in Atlanta, Georgia, has earned the distinction of serving the

highest volume ofCoca-Cola anywhere. It dispenses nearly 3 million servings of

Coca-Cola annually.

If the Coca-Cola company constructed a sign like the ones McDonald's uses to

count their millions of customers, by 1983 it would have read "over 1 trillion

served."

If all the Coca-Cola ...

o ever produced were in 6 1/2 oz. bottles and placed end to end they

would wrap around the earth more than 11,863 times.

o sold in 1994 were in 8-ounce bottles laid end-to-end, those

bottles would reach to the moon and back 76 times.

o vending machines in the U.S. were stacked one on top of each other,

the pile would be over 450 miles high.

o ever produced were to erupt from "Old Faithful" at its normal rate of

14,000 gallons per hour, the geyser would flow continually for 1,577

years.

o Products sold in 1994 were flowing over Niagara Falls at its normal

rate of 1.5 billion gallons per second, the falls would flow for three

hours.

Ingredients of Coke

Carbonated Water

High Fructose Corn Syrup

Caramel Color

Phosphoric Acid

Natural Flavors

Caffeine

Description:

52


53/96


This company profile offers a comprehensive analysis of the organization, its business

segments, and competitors. It analyzes the business and marketing strategies adopted by

the company, toga in a competitive edge in the industry. The profile also evaluates the

strengths of the companyand the opportunities present in the market.

This profile is of immense help to management consultants, analysts, market research

Organizations and corporate advisors.

The objective and scope of various sections of our company profile has been discussed

below.

Company Summary

This section presents the key facts & figures, business description, products & services

offered and Corporate timeline of the company.Company Analysis

It involves analysis of the company at three levels - segments, organizational structure and

ownership composition. Both business and geographic segments are analyzed along with

their recent financial performance. It further discusses the major subsidiaries of the

company and the recent merger & acquisitions.

Business Developments

This section examines the significant developments that have taken place in the company.

It is form of news analysis where the most critical company news is discussed.

Discussion of Business Strategies

This section talks about the current and future strategies of the company. All business,

marketing, financial and organizational strategies are discussed here.

SWOT Our SWOT Analysis is a valuable step in assessing your companys strengths,

weaknesses, opportunities, and threats. It offers powerful insight into the critical issues

affecting a business.

Financial Performance

It discusses the most recent financials of the company and also compares the

historical sales & income figures with the current and projected figures. The objective is to

53


54/96


evaluate the financial health of the company. The analyst opinion and stock performance

help us in evaluating the performance of the company from an investors viewpoint.

Competition Synopsis

This section compares the company with its peer group. The comparable analysis and stock

movement are aimed at giving an overview of the competitive landscape in the industry

and the companys positioning in its peer group.

ANALYSIS SOFT DRINK

1 Analysis of the U.S. soft drink industry, based on the competitive forces model of

Michael Porter.

In the soft drink industry the entry of new competitors depends on the barriers to entry that

are present, and also the reaction from existing competitors that the entrant can expect.

I will now analyze the six major sources of barriers to entry the soft drink industry.

Economies of scale deter entry by forcing the entrant to come in at large scale and risk

strong reaction from existing firms or come in at a small scale and accept a cost

disadvantage. If a company wants to decline its unit costs of their product, they will have to

produce more to lower the cost. The more you produce, the lower the costs.

In the soft drink industry establishing firms have brand identification and customer

loyalties. The brand name can have differences. This is a high barrier to enter. Entrants are

forced to spend a lot to overcome existing customer loyalties.

Definition of soft drinks

Nonalcoholic beverage

A soft drink is a beverage that does not contain alcohol ; generally it is also implied that the

drink does not contain milk or other dairy

Family of alcohol free, carbonated , drinks that are aromatized with fruit extracts. cola ,

tonic, etc

REVENUE

54


55/96


The Coca-Cola Company North America offices in Sugar Land, Texas, United

StatesAccording to the 2005 Annual Report, the company sells beverage products in more

than 200 countries. The report further states that of the more than 50 billion beverage

servings of all types consumed worldwide every day, beverages bearing the trademarks

owned by or licensed to Coca-Cola account for approximately 1.5 billion. Of these,

beverages bearing the trademark "Coca-Cola" or "Coke" accounted for approximately 78%

of the Company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as

follows:

37% in the United States

43% in Mexico, Brazil, Japan and the People's Republic of China

20% spread throughout the rest of the world

In 2010 it was announced that Coca-Cola had become the first brand to top 1 billion in

annual UK grocery sales.

55


56/96


CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

56


57/96


DATA ANALYSIS AND INTERPRETATION

Section I

1)Q What is modern trade ?

2)Q What are the advantages of modern trade ?

3)Q Who are the present partners of the modern trade ?

4)Q Define Plano gram and explain its significance ?

5)Q WHY is category important in modern trade ?

6)Q What are the important locations within Modern Trade where we must place our

beverages ?

57


58/96


7)Q What is POP with respect to Modern Trade ?

Section I

1) Q what is modern trade?

Answer:

Modern Trade is nothing but an organized retail sector. It comprises of wide rage of

products as well as targets.

2)Q What are the advantages of modern trade ?

Answer:

58


59/96


Modern trade has few advantages such as: More choice for customers, Billed transactions,

Promotional offers from the companies so that it ensures a satisfactory level for the

customers.

3)Q Who are the present partners of the modern trade ?

Answer :

Modern Trade has few participants such as: MORE, SPENSORS, FOODWORLD as well

as RELAINCE FRESH as well as FOOD WORLD. There are many more partners where

we have not considered them as they are not part of this research. We have only

RELIANCE FRESH as consideration to this extent.

4)Q Define Plano gram and explain its significance ?

Answer :

It is a designed plan for the convenience of alignment of the products in the outlet. Because

of this the customers will have the advantage of feeling easy in the process of picking up

the product while shopping.

5)Q WHY is category important in modern trade ?

Answer :

The only reason why the aspect category is quiet important in modern trade is just

because it is identify the product. Ina word it is user friendly for the people.

6)Q What are the important locations within Modern Trade where we must place our

beverages ?

Answer :

59


60/96


The important locations where we coke can be paced so as to get identified by the

customers is chillers. Any one looking for beverages are especially choosing from chillers.

80%of the shoppers do this.

7)Q What is POP with respect to Modern Trade ?

Answer :

POP is nothing but point of purchase in its shortest form and with respect to modern trade it

is a point at which customers make their own buying decisions.

ANALYSIS:

Modern trade

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Organised Sector 8 53.3 53.3 53.3

Organised

Outlets3 20.0 20.0 73.3

Organised Trade 4 26.7 26.7 100.0

Total 15 100.0 100.0

60


61/96


In a sample size of 15 respondents:

a) 53.3% of them answered Modern trade as Organized sector

b) 20.0% of them answered Modern trade as a Organized outlets

c) 26.7% of them answered Modern trade as Organized business

Characteristics of MT

Frequency Percent Valid Percent

Cumulative

Percent

Valid Ambience 4 26.7 26.7 26.7

Variety 5 33.3 33.3 60.0

benefit6 40.0 40.0 100.0

Total 15 100.0 100.0

61


62/96


In a sample size of 15 respondents

a) 40% of them opined that benefit as the main characteristic feature of the

Modern retail

b) 33% of them opined that variety as the characteristic feature of Modern retail

c) 27% of then opined that ambience as the characteristic feature of Modern

retail

As 40% of the respondents feel that benefit as the important factor in Modern trade

so, we can conclude that margin plays a major role in Modern trade

62


63/96


Planogram

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Comuputer generatedplan

5 33.3 33.3 33.3

well designed plan 10 66.7 66.7 100.0

Total 15 100.0 100.0

63


64/96


In a

sample size of 15 respondents

a) 67% of the respondents opined Plano gram as a Computer generated plan

b) 33% of them opined Plano gram as well designed, manually generated plan a

Even there are computer generated plans, retailers are opting for manual plans this is

because of the Organised retail still occupying only * % of the market share.

64


65/96


Significance of plano gram

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid stock availability 7 46.7 46.7 46.7

identificaition of

products6 40.0 40.0 86.7

Both 2 13.3 13.3 100.0

Total 15 100.0 100.0

65


66/96


In a sample size of 15 respondents:

a) 47% of the respondents are of the opinion that, stock availability as the

significance of a Plano gram

b) 40% of them are of the opinion that, when products are arranged according

to a planogram that will be useful for the easy identification of products

c) 13% of the respondents were of the opinion that, when products are arranged

according to a particular planogram that will be useful for that easy

identification and stock availability of precuts can be known

Retailers are using Planogram for checking availability of the stock, but they are not

using the soft ware for shelf life management and other functions.

66


67/96


Category Importance

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Arrangement and

availability9 60.0 60.0 60.0

Sales 2 13.3 13.3 73.3

Identification of

products4 26.7 26.7 100.0

Total 15 100.0 100.0

In a sample size of 15 respondents

1) 60% of them responded that category is important for arrangement and

availability of product

2) 27% of them responded that category is important for the Identification of

products

3) 13% of them responded that category is useful for the sales.

67


68/96


68


69/96


Imp locations for Beverages

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Chiller & End Cap 5 33.3 33.3 33.3

Chiller & Cash points 6 40.0 40.0 73.3

chiller&Multiple

categories4 26.7 26.7 100.0

Total 15 100.0 100.0

69


70/96

Promotional Strategi

Promotional Strategies of Coca Cola

Documents

Transcript of Promotional Strategies of Coca Cola