A

Dissertation

On

“A detailed study of consumer attitude

&

behavior towards carbonated drinks”

SUBMITTED TOWARDS FULFILLMENT

OF

POST GRADUATE DIPLOMA

IN

BUSINESS MANAGEMENT

(Session: 2007-2009)

Under the Guidance of: Submitted By:

Mrs. Manisha Mandiratta Manish Saran

MBA (Marketing)

ROLL.NO.-520759616

SKYLINE BUSINESS SCHOOL

1

Acknowledgements

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

her continuous support, supervision motivation and guidance through out the

tenure of my project in spite of her hectic schedule who truly remained driving

spirit in my project and her experience gave me the light in handling research

project and helped me in clarifying the abstruse concepts, requiring knowledge and

perception, handling critical situations and in understanding the objective of my

work.

I would also like to express my heartiest thanks to all the respondents who

took time for answering my questions.

Manish Saran

2

TO WHOMSOEVER IT MAY CONCERN

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

Skyline Business School, Gurgaon has done this project under my guidance and

supervision from 20th

January 2009 to 20th

April 2009.

He has completed the project titled “A detailed study of consumer attitude

& behavior towards carbonated drinks.” towards the fulfillment of PGDBM

under my supervision.

During his project he was found to be very sincere and attentive to small

details whatsoever told to him.

I wish him luck and success in future.

Under the guidance of:

Mrs. Manisha Mandiratta

(Associate Professor)

3

Executive Summary

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the world‘s leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. Coca-Cola was first introduced by John

Syth Pemberton, a pharmacist, in the year 1886 in Atlanta, Georgia when he concocted caramel-

colored syrup in a three-legged brass kettle in his backyard. He first ―distributed‖ the product by

carrying it in a jug down the street to Jacob‘s Pharmacy and customers bought the drink for five

cents at the soda fountain. Carbonated water was teamed with the new syrup, whether by

accident or otherwise, producing a drink that was proclaimed ―delicious and refreshing‖, a theme

that continues to echo today wherever Coca-Cola is enjoyed. Coca-Cola originated as a soda

fountain beverage in 1886 selling for five cents a glass. Early growth was impressive, but it was

only when a strong bottling system developed that Coca-Cola became the world-famous brand it

is today. Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than

reveals its formula to the Government and reduces its equity stake as required under the Foreign

Regulation Act (FERA) which governed the operations of foreign companies in India. In the new

liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India through

its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company. The

main objective of this study lies in understanding the organization and studying and

understanding the consumers‘ perception and opinion about the latest product, Minute Maid

Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer sampling

involving 5.5 lakh people was conducted in a span of 30 days across major cities in order to give

the product the required marketing push and to recognize the prospective consumers and their

opinion in order to develop and market the product in a better way in the near future. The

methodology used in studying and understanding the perceived views of consumers towards the

product was ‗SAMPLING‘. The findings of the activity have been drawn out in form of graphs

and suggestions have been offered there from.

4

Table of Contents

1: Preface………..……………………………………………………………………6

2: Literature Review……………………………………………………………….7

3: Chapter 1 Introduction

3.1 A Brief Insight- The Beverage Industry in India……………..11

3.2 A Prospective – Carbonated Soft-Drink in India……………..12

3.3 Competitive Arena…………………………………………………...15

3.4 History of Coke………………………………………………………..17

4: Chapter 2 Manifesto for Growth

4.1 Mission………………………………………………………………….24

4.2 Vision……………………………………………………………………24

4.3 Values…………………………………………………………………..24

5: Chapter 3 Manufacturing & Distribution Strategy

5.1 Manufacturing Strategy……………………………………………27

5.2 Distribution strategy………………………………………………..28

6: Chapter 4 Coca Cola Marketing Strategy

6.1 Objectives/Goals……………………………………………………..30

6.2 Target Market…………………………………………………………30

6.3 Marketing Mix…………………………………………………………30

6.3.1 Product……………………………………………………….30

6.3.2 Price…………………………………………………………...30

6.3.3 Promotion……………………………………………………31

6.3.4 Placement……………………………………………………31

7: Chapter 5 Brands of Coca-Cola

7.1 Energy Drinks…………………………………………………….……33 7.2 Juices/Juice Drinks…………………………………………….…….33

7.3 Soft Drinks……………………………………………………….……..33

7.4 Sports Drinks…………………………………………………….…….33

7.5 Tea and Coffee………………………………………………….……..33

7.6 Water…………………………………………………………….………33 7.7 Other Drinks………………………………………………….………..34

7.8 Indian Brands…………………………………………………………34

8: Chapter 6 Objective of Study 8.1 Aim/Objective…………………………………………………………36

8.2 Methodology……………………………………………….…………..36

5

8.3 Procedure………………………………………………………………36

8.4 Findings…………………………………………………………………37 8.4.1 Graph 1: Gender of Consumer…………………………37 8.4.2 Graph 2: Age Group of Consumer…………………….38

8.4.3 Graph 3: Occupation of Consumer……………………39 8.4.4 Graph 4: Number of People Buy Cold Drink…….….40 8.4.5 Graph 5: Which Brand People Buy...........................41

8.4.6 Graph 6: Reason to Purchase Cold Drink……………42 8.4.7 Graph 7: People Seen Ads of Cold Drink…………….43 8.4.8 Graph 8: Ads Remember Most…………………………44

8.4.9 Graph 9: Reason to Remember Ads…………………..45

9: Chapter 7 Calculations

9.1 Testing of Hypothesis………………………………………..47

9.2 Major Findings……………………………………………….…50

9.3 Suggestions…………………………………………………..…51

9.4 Conclusion…………………………………………………….…52

9.5 Limitation……………………………………………………..…53

10: Bibliography……………………………………………………………………54

11: Questionnaire……………………………………………………………….…55

6

Preface

Market provides a key to gain actual success only to those brands which match best to

the current environment i.e." imperative" which can be delivered what are the people needs

and they are ready to buy at the right time without any delay. It is perfectly true but this also

depends on availability of good quality products and excellent taste and services which further

attract and add a golden opportunity for huge sales.

This also depends on the good planning approach and provide ample opportunity plus

sufficient amount of products for sales in the coming next financial year.

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

beverages. After going through a detail analysis of market behavior and future prospect, it may

also provide an opportunity to COCA COLA to frame a good future plan to satisfy maximum

needs of the customers and established its guiding role in the market of Delhi in particular and

through out the country as a whole. The study report will also provide an opportunity to

delineate its market potential business areas, products & services are to be offered by the

company to the customers.

This study report also provides the various factors affecting the services. Marketing

Division of COCA COLA has to keep in mind various factors specially while preparing a plan

for marketing its product or services. Detail description along with analysis of surveyed data is

being presented in this report.

7

Literature Review:

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

The purpose of this paper is the study of factors responsible for brand preference in

FMCG products, increasing competition, more due to globalization, is motivating many

companies to base their strategies almost entirely on building brands. Brand preference

means to compare the different brands and opt for the most preferred brand. This brand

preference is influenced by various factors. According to this study many factors were find

out for preferring a brand like:

Brand persona

Brand constancy

Brand loftiness

Brand value.

In the identification of factors affecting the brand preference, it was concluded that brand

persona is the most effective factor that affects the brand preference. This brand persona

deals with the personality aspects or the external attributes of brand, thus it can be said that

consumer prefer any brand by looking at the external attributes of a brand.

Journal of IMS, Vol 5 no.1, Jan-June 2008

2. Colour and flavour rule consumer preferences: Study

The intensity of colour and the flavour are the key drivers behind consumer acceptance of

beverages, says a new study involving DANONE. But packaging and labelling are not as

important for winning over consumers, according to findings published in the journal Food

Quality and Preference, The study involved consumers at different stages of development

and highlights the importance of adopting a ―sensory marketing approach,‖ said the

researchers from French research organisation Adriant, the University of Rennes 1,

DANONE R&D, and Institute Paul Bocuse.

―Companies need to continuously innovate to maintain market leadership,‖ wrote the

researchers. ―When the market is overloaded the challenge consists in creating innovative

products able to attract and satisfy consumers.‖ ―This experiment showed the feasibility of

the proposed multi-sensory design method based on mixed qualitative and quantitative

approaches.‖ The study also demonstrates the importance of flavour and colour selection for

new products.

The global flavours market was been valued at some US$18bn in 2006 (Business

Insights). Meanwhile, the value of the international colourings market was estimated at

around $1.15bn in 2007 (€731m), up 2.5 per cent from $1.07bn (680m) in 2004, according to

Leatherhead Food International (LFI). Natural colours now make up 31 per cent of the

colourings market, compared with 40 per cent for synthetics, according to LFI.

8

3. Bombarding the senses: Study

By choosing to formulate a new beverage, the researchers noted that the new product

would need to be differentiated by improving the sensory characteristics. Four factors were

identified for the formulation: four colour intensities), three flavourings, two label types (soft

versus hard), and two pack sizes (standard versus oversize). By using both quantitative

(hedonic testing) and qualitative (focus groups) approaches, the researchers found that ―the

main factors which drive consumer preference for this concept are colour intensity and

flavouring‖. Indeed, colour intensity accounted for 43 per cent and flavour 32 per cent of the

consumers‘ overall liking. ―Pack size and label type are taken into account by the consumer

to a lesser extend,‖ they added. ―This methodology of a qualitative screening associated to a

conjoint analysis on relevant sensory attributes has shown good performances to fit

consumers‘ expectation: it has now to be reproduced, as every brand, concept and product is

a unique combination designed for a specific consumer group,‖ concluded the researchers

Source: Food Quality and Preference

Volume 19, Issue 8, Pages 719-726

By Stephen Daniells, 07-Oct-2008

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

This study examined the relative contributions of taste and health considerations on

consumer liking and purchase intent of cola drinks. Eight types of commercial cola drinks

were evaluated by 305 adult consumers who also completed a brief questionnaire on food

habits. Data were analyzed using factor analysis. Results revealed that purchase intent of cola

drinks was strongly related to degree of liking and to several key sensory attributes including

saltiness, drinks flavor and greasiness. These variables emerged as the first factor in the

analysis, suggesting that consumers perceive these characteristics as being most important in

their choice of cola drinks. Factor 2 described a health dimension and was related to

respondents' attitudes toward fat in the diet. Factor 3 comprised two remaining sensory

attributes (color and crunchiness), which apparently were of minor importance to the

respondents. These data suggest that in spite of current concern about reducing dietary fat,

health remains secondary to taste in the selection of cola drinks for consumers in this

population.

Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology,

15 September 1998

.

5. Paired preference tests using placebo pairs and different response

options for cola drinks, orange juices : Abstract

9

Preference tests were performed for varieties of cola drinks, orange juices and using three

response protocols: the traditional paired preference test with the "no preference" option, a 9-

point hedonic scale and a 6-point hybrid hedonic/purchase intent scale. The different stimuli

to be assessed were presented in pairs, but putatively identical stimuli were also presented as

a "placebo" pair. Performance on the placebo pair with identical stimuli provided a measure

of the hidden demand characteristics of the test protocol. The presentation of the different

pairs provided a measure of preference accompanied by such hidden demand effects.

Comparison between the two allowed a better measure of preference per se. The order of

presentation of the identical and different pairs did show occasional slight evidence of

contrast effects. For the placebo "identical" pairs, a majority of consumers reported false

preferences. Liking questions with the hedonic and hybrid scales elicited fewer false

preferences than preference questions with the paired preference protocol. Yet, the effects

tended to be slight. The 6-point hedonic/purchase intent scale exhibited the fewest false

preferences in the placebo condition, and this was because of its fewer categories rather than

any cognitive strategy change elicited by its different labels.

Source-Davis Woman‟s

Journal of Food Science and Technology, July 31, 2007

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

This paper aims to investigate the degree of brand awareness of various food products in

relation to background and education of the household, the consumption pattern of various

food products consumed by respondents in the light of their areas, income levels and

education. a sample of200 respondents comprising 100 form rural area and 100 from urban

area were taken. Data are analyzed with the help of mean.SD,co –efficient of variance-test

and f-test. The finding of this study reveals that there is low degree of brand awareness in

rural areas, whereas there is a moderate degree of brand awareness in urban India. The highly

educated rural and urban respondents have high degree of brand awareness for many food

products, and the less educated rural and urban respondents have low degree of brand

awareness for many food products.

Journal of IMS Vol 3 no.1, Jan-June 2007

10

Chapter 1 Introduction

A Brief Insight - Beverage Industry in India

The Carbonated Drinks Industry In India

About Coca Cola

Competitive Arena

History of Coca Cola

A 100 Years of The Curvy Glass Bottle

Globalization Strategies

The Future of Coca Cola

11

Beverage Industry in India: A Brief Insight

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

which the players constantly innovate, in order to come up with better products to gain more

consumers and satisfy the existing consumers.

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right

product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages

Natural and Synthetic beverages

In-home consumption and out of home on premises consumption.

Age wise segmentation i.e. beverages for kids, for adults and for senior citizens

Segmentation based on the amount of consumption i.e. high levels of consumption and

low levels of consumption.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

12

If the behavioral patterns of consumers in India are closely noticed, it could be observed that

consumers perceive beverages in two different ways i.e. beverages are a luxury and that

beverages have to be consumed occasionally. These two perceptions are the biggest challenges

faced by the beverage industry. In order to leverage the beverage industry, it is important to

address this issue so as to encourage regular consumption as well as and to make the industry

more affordable.

Four strong strategic elements to increase consumption of the products of the beverage

industry in India are:

The quality and the consistency of beverages needs to be enhanced so that consumers are

satisfied and they enjoy consuming beverages.

The credibility and trust needs to be built so that there is a very strong and safe feeling

that the consumers have while consuming the beverages.

Consumer education is a must to bring out benefits of beverage consumption whether in

terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant

to the category.

Communication should be relevant and trendy so that consumers are able to find an

appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of

distribution. It is important to look at the entire beverage market, as a big opportunity, for brand

and sales growth in turn to add up to the overall growth of the food and beverage industry in the

economy.

13

The Carbonated Drinks Industry In India; A Perspective

The Rs.17000 crore market of carbonated drinks industry in India looked really bad just

after the ―Pesticide‖ controversy last year. But some cool promotions and quick reactions by cola

companies have handled the crisis satisfactorily. The controversy has thought the industry few

lesson or so and in the process consumer and the economy also benefited.

―Colas, contributing more than 50 per cent to fizzy drink sales, saw a huge slide after the

pesticide controversy, but are believed to be making a come back. Thanks to increased

advertisement spends which is over 20 per cent higher than last year. There is some good news

on the non-cola segment. The lime and lemon segments with brands like sprite and 7up have

registered a 30 to 40 per cent growth, although on a smaller base. ―1 Nevertheless, the battle

between two cola giants, Coke & Pepsi, did not go any slow. Rather it has become fiercer. They

are now fighting each other even at the local level. That too the trend is as old as start of this

millennium.

―All‘s fair, as usual, in a cola war, even a slugfest between two real-life brothers!

Always thriving on ambush marketing activities, the two cola giants Coca-Cola India and

PepsiCo have now gone to the extent of putting up two real-life brothers (who also happen to be

celebrities) against each other with the strategic aim to gain rapid market share in one of the

country‘s largest carbonated soft drinks (CSD) market: Andhra Pradesh (AP).In the latest move,

the brothers who are also Telugu cine stars—Chiranjeevi and Pavan Kalyan—have been pitched

against each other by their respective sponsors Coke and Pepsi using a peculiar below-the-belt

technique.―2

The present scenario of the carbonated drinks market is behaving the way it has all to do

with a duopoly situation. A duopoly is a competitive situation where there are two competitors,

normally of roughly equal size. Although in every place they have local competitors and there is

a huge unorganized flavoured water market. Yet again, packaged water is also a competitor to

the cola brands and in this category neither of the two cola companies are market leaders.

However, as far as the carbonated drinks are concerned there are only two brands, Coke and

Pepsi. Therefore, we can safely say that this condition does qualify to be a near duopoly situation

and thus there is such intense competition. Unless, the two parties in a duopoly collaborate with

each other, which is certainly not the case in the cola market worldwide or in India, this battle is

not going to slow down even a bit! Rather, it would grow stronger with every passing day.

In a situation like this it is very interesting to observe marketing strategies in general and Product

& Pricing strategies in specific of the players, merely because the action of one player is bound

to invite similar reaction from the other. As if, the third law of Newton, that ―every action has an

equal and opposite reaction‖, can‘t fit better in any other situation!

1 Molshree Vaid, , January 28, 2006, www.cnn-ibn.com

2 www.magindia.com, June '19, 2002, FE

14

In a duopoly like situation, as far as cola industry in India is concerned, it can be said that

it is foolish to cut prices unless, one of the two parties has a much lower cost base. But that is not

the case in India. In fact, both the companies, Coke and Pepsi, invest heavily in advertising and

in distribution through their franchise as well as their own systems. However, a great deal of

attention is paid by both companies to cost, particularly in the development of a tightly effective

supply chain system in which economies are squeezed out and, wherever possible both

overheads and working capital are controlled. Therefore, it is extremely difficult to for both the

parties to play with the prices. Rather, it is counter-productive exercise, as when prices are

reduced in a particular area by one of the cola brands, the second must follow.

If we look into the history of pricing of these two particular players of the carbonated

drinks industry, we will see that the first major initiative in the price front took place some years

ago when the brand Coca-Cola came back to India. At that point of time colas were available

only in 200 ml bottles. Coca-Cola, in it‘s come back trail, broke the tradition by launching Cola

in the 300 ml size bottles but at the same price as Pepsi, which was then in a 200 ml bottle. With

this strategy, Coke expected to gain advantage in the market especially in India, which is

traditionally a highly price sensitive market. However, Pepsi, as being a fierce competitor was

prepared for it and soon launched its colas in the 300 ml sizes. Thereby, in India, it was the 300

ml bottle which became the standard in most parts of the country, making the price a parity issue

between the two brands.

Then, a few years ago, one litre and 1.5 litre non-returnable PET bottles at a discount in

comparison to, a 300 ml returnable glass bottle, the traditional packaging in this product

category, was launched by Pepsi. It was a successful move resulting in significant increase in the

consumption level especially amongst the loyal consumers in the urban areas. And part of the

rule of the game, Coke followed Pepsi in the above move in order to reduce the cost per glass to

the consumer.

Then came the days of a 500 ml non-returnable PET bottle which was advertised almost

totally on the cost of the consumer per 100 ml of cola! Nevertheless, the great advantage that the

PET bottles provided is that they have increased home consumption level which was not of much

significance compared to out of home consumption till then.

And in very recent times the Coke did a u-turn that is price cuts. The latest move of

reducing price to the consumer is the very opposite of what has been happening to-date. It has

now re-launched a 200 ml bottle at a unit price of approximately 2/3rd

of the 300 ml price, thus

making retail purchase look cheaper. This strategy was meant to fight consumption pattern of

smaller towns and rural areas where two people share a 300 ml bottle. Importantly, by making

the bottle smaller it has only reduced unit price without affecting the trade margin.

It has been reported that Pepsi has been cutting the price of its 300 ml bottle in some

places, until an inventory of 200 ml bottles was built, as an answer to the Coke‘s strike.

However, this act of Pepsi might boomerang as there is a strong probability of having some

negative effect on the supply chain and other inventory cost in the long run.

15

About Coca Cola

Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,

Georgia, on May 8, 1886. Coca-Cola Company is the world‘s leading manufacturer, marketer

and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400

beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,

distributors, fountain retailers and fountain wholesalers. The Company‘s beverage products

comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-

drink powder products. In addition to this, it also produces and markets sports drinks, tea and

coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating

in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has

successfully applied a simple formula on a global scale: ―Provide a moment of refreshment for a

small amount of money- a billion times a day.‖

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and

pervasive production and distribution system in the world. More than anything, that system is

dedicated to people working long and hard to sell the products manufactured by the Company.

This unique worldwide system has made The Coca-Cola Company the world‘s premier soft-

drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any

other consumer product, has brought pleasure to thirsty consumers around the globe. For more

than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of

people every day.

The Company aims at increasing shareowner value over time. It accomplishes this by working

with its business partners to deliver satisfaction and value to consumers through a worldwide

system of superior brands and services, thus increasing brand equity on a global basis. They aim

at managing their business well with people who are strongly committed to the Company values

and culture and providing an appropriately controlled environment, to meet business goals and

objectives. The associates of this Company jointly take responsibility to ensure compliance with

the framework of policies and protect the Company‘s assets and resources whilst limiting

business risks.

16

Competitive Arena

The soft drink market all over the world has been witnessing a neck to neck battle

between the two major players, Coca-Cola and Pepsi since the very beginning. The thirst

quenchers are trying hard to have the major chunk of the pie of carbonated soft drink market.

Both the players are spending their energies in building capacity, infrastructure, promotional

activities etc.

Coca-Cola being 11 years older than Pepsi has dominated the scene in most of the soft

drink markets in the world and enjoying

leadership in terms of market share. But the

Coca-Cola people are finding it hard to keep

away Pepsi, which has been narrowing the

gaps regularly. The two are posing threats to

each other in every nook and corner of the

world. While Coca-Cola has been earning most

of its bread and butter through beverage sales,

Pepsi has a multi products portfolio with some

portion from the same business.

The two warriors are face to face once

again here in India with different strategies and tactics to attack the rival. Coca-cola is focusing

upon the joint ventures with the existing bottlers {FOBO} franchise owned bottling operations

to enhance its control on manufacturing and marketing of its products range and attain the

quality standards of its class.

Countering it Pepsi has taken the battle in its own hands by floating as investment of $ 95

billion to set Pepsi Company. India holdings, as subsidiary for {COBO} company owned

bottling operations. Both the companies are following different path to reach the same destiny

i.e. to fetch the bigger portion of aerated soft drink market. Both consider India a huge potential

market, as per capita consumption here is a mere 3 serving annually against the world average of

80. Therefore, they are putting in their best efforts to woo the Indian consumer who has to work

for 1.5 hours to buy a bottle of soft drink. In comparison to the international norms minutes, a

major hurdle to cross over for both the athletes for getting no.1 position comparison to the inter.

Coca-cola is well set with its 53 bottling sites through out the country giving it an edge over

competition by processing a well-built bottling and distribution set-up. On the

other hand, Pepsi, with two more years in India, has been able to set an image

of a winner in India and has been able to get the pulse of the India soft drink

market. The soft drink giants are leaving on stone unturned and her for the

long terms.

17

Coca-cola has been penetrating the market through its wide product range with a

determination to change consumption pattern of soft drink in India. Firstly, they upgraded the

whole industry by introduction 300 ml bottles, which in turn had given the industry a booming

growth of 20% as compared to the earlier 5%. They want to develop a coca culture here and are

working on a strategy to offer soft drink in every possible package. In coca-cola camp, the idea

of competition has not come from Pepsi, but from the other beverages such as tea, coffee,

Nimbu-Pani, water etc. Pepsi is quite aggressive in its approach to Indian consumer. They are

desperately working on the strategy to be winners in the hot cola war between two big barons.

According to Pepsi philosophy, it‘s the madness that encourages executive to think, to conjure up

those creative tactics to knock the fizz out their competition. Pepsi had plumbed a large on the

visibility of its blue red and white logo. They have

been going with aggressive marketing by putting

Amir Khan, Gautam Gambhir, Genelia D‟Souza

in their advertisement to endorse their brand, the role

models for its targeted consumer the teenagers. They

have increased the fizz in the market place by

introducing the dispensers called fountain Pepsi and

have been enjoying a lead over its rival there.

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

situations in the lives of the people. Taking the audience through different moments of life Aamir

observes that though the times have changed but the happy moments are still celebrated together

and not in isolation. The entire communication is an ensemble of many such incidents in our

lives. The communication ends with Aamir saying “Aap Muskuraingey, Bul Bule Gun

Gunayaingey” – Open Happiness” (You smile, so do the Bubbles in a bottle of Coca-Cola).”

.

18

History of Coca Cola

Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a glass.

Early growth was impressive, but it was only when a strong bottling system developed that

Coca-Cola became the world-famous brand it is today.

1894 – A modest start for a Bold Idea

In a candy store in Vicksburg, Mississippi, brisk sales of the

new fountain beverage called Coca-Cola impressed the

store's owner, Joseph A. Biedenharn. He began bottling

Coca-Cola to sell, using a common glass bottle called a

Hutchinson.

Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler

thanked him but took no action. One of his nephews already had urged that Coca-Cola be

bottled, but Candler focused on fountain sales.

1899 The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around

bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph

B. Whitehead obtained exclusive rights to bottle Coca-Cola across most of the

United States (specifically excluding Vicksburg) -- for the sum of one dollar. A

third Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909 … Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling

rights to local entrepreneurs. Their efforts were boosted by major progress in

bottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-

Cola bottling plants were operating, most of them family-owned businesses. Some were open

only during hot-weather months when demand was high.

19

1916 … Birth of the contour bottle

Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators.

A group representing the Company and bottlers asked glass manufacturers to offer ideas for a

distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won

enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the

few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most

recognized icons in the world - even in the dark!

1920s … Bottling overtakes fountain sales

As the 1920s dawned, more than 1,000 Coca-Cola bottlers were

operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge

hit after their 1923 introduction. A few years later, open-top metal coolers became the

forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola

exceeded fountain sales.

1920s and 30s … International expansion

Led by longtime Company leader Robert W. Woodruff, chief executive

officer and chairman of the Board, the Company began a major push to

establish bottling operations outside the U.S. Plants were opened in

France, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa.

By the time World War II began, Coca-Cola was being bottled in 44 countries.

1940s … Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops. This

followed an urgent request for bottling equipment and materials from General Eisenhower's base

in North Africa. Many of these war-time plants were later converted to civilian use, permanently

enlarging the bottling system and accelerating the growth of the Company's worldwide business.

1950s … Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type -- the traditional

6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were

also introduced, becoming generally available in 1960.

20

1960s … New brands introduced

Following Fanta® in the 1950s, Sprite®, Minute Maid®, Fresca® and TaB® joined brand Coca-

Cola in the 1960s. Mr. Pibb® and Mello Yello® were added in the 1970s. The 1980s brought

diet Coke® and Cherry Coke®, followed by POWERADE® and DASANI® in the 1990s.

Today hundreds of other brands are offered to meet consumer preferences in local markets

around the world.

1970s and 80s … Consolidation to serve customers

As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved

into international mega-chains. Such customers required a new approach. In response, many

small and medium-size bottlers consolidated to better serve giant international customers. The

Company encouraged and invested in a number of bottler consolidations to assure that its largest

bottling partners would have capacity to lead the system in working with global retailers.

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for

decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in

Eastern Europe. And as the century closed, more than $1.5 billion was committed to new bottling

facilities in Africa.

21st Century…. & Still Going Strong

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This

heritage serves the Company well today as people seek brands that honor local identity and the

distinctiveness of local markets. As was true a century ago, strong locally based relationships

between Coca-Cola bottlers, customers and communities are the foundation on which the entire

business grows.

21

A 100 Years of The Curvy Glass Bottle Of Coca Cola

Coca-Cola Company marks a mile stone on Wednesday, 24th

March 1899 Chattanooga;

Tenn. where its first bottling plant was started 100 year ago by two men struck one of the

most lucrative business deals in US history.

Joseph whitehead and Benjamin Thomas offered coca-cola company owner Asia

Candler a dollar for the right to bottle soft drinks in 1899. Today 1 billion soft drinks are sold

each day in more than 200 countries around the world. Candler had purchase what would

become the cola company for $2,300 eight years earlier from john Pemberton, an Atlanta

pharmacist who astonished the world. Candler though the bottling venture would never succeed,

but he signed the contract with white head and Thomas any way, “and the rest is history”, bob

Lovell, vice president of marketing for coca-cola bottling company. United inc., said in

telephone interview from Chattanooga.

22

Coca Cola Globalization Strategies

The coca-cola company is global player and approximately 70 % of its volume and 80 %

of its profit come from outside the United States of America. Although it was perceived as a

standardized brand across the world, coca-cola had been quietly fine turning its international

marketing strategies to suit the needs of individual national markets. Only the brand coca-cola,

Sprite and Fanta were marketed globally. In Latin America and Europe, where heavy consumer‘s

preferred existed for lemon lime and orange soda.

Coke had developed a wide range of formulations and flavors to cater the needs of

different countries. In ei Salvador and Venezuela, a version of Fanta called Fanta kolita a

cream soda type of drink became extremely popular. Similarly, in Indonesia coke had been

selling pineapple and banana Limca, Maaza and Thums up in 1993.

23

The Future of Coca Cola

While doing business overseas offers coke wonderful growth opportunities it also has its

own disadvantages. The economic slowdown in various overseas markets and the strong dollar

had their impact on coca-cola revenues and bottom line in 1998. But the company is optimistic

about the future.

M Douglas Investor, the Chief Executive Officer of the Coca-Cola Company says, ―This

past year 2006 has been a challenging period for the Coca-Cola Company as economic

environment became more uncertain in the later part of 2006, and we strongly believe that our

fundamental opportunities for long term growth have not changed‖.

As long as maximization of share holder wealth remain Coke‘s focus for its future is

assured Goizueta had stated and proven to the world that focus on shareholder wealth does more

good to the company than focus on revenues and it is not that coke does not enjoy volumes for it

is world‘s No.1 soft drink manufacture. It is not content with this title and is aiming at higher

volumes year after year. Surely coke will continue to grow. Point on Roberto had reduced the

company basically to its trademark and the returns are so astronomical as to be off the boards. It

just absolutely added a jet engine to their performance.

24

Chapter 2

Manifesto for

Growth Mission

Vision

Values

25

Mission, Vision & Values

Our mission, vision and values outline who we are, what we seek to achieve, and how we

want to achieve it. They provide a clear direction for our Company and help ensure that we are

all working toward the same goals.

Mission Statement Our mission declares our purpose as a company. It serves as the standard against which we

weigh our actions and decisions. It is the foundation of our Manifesto.

To refresh the world in body, mind and spirit.

To inspire moments of optimism through our brands and our actions.

To create value and make a difference everywhere we engage.

Vision Statement Our vision guides every aspect of our business by describing what we need to accomplish in

order to continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of

quality beverage brands that anticipate and

satisfy people's desires and needs.

Partners: Nurturing a winning network of

customers and suppliers, together we create

mutual, enduring value.

Planet: Being a responsible citizen that

makes a difference by helping build and

support sustainable communities.

Profit: Maximizing long-term return to

shareowners while being mindful of our

overall responsibilities.

Values Our values serve as a compass for our actions and

describe how we behave in the world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

26

Chapter 3

Manufacturing &

Distribution Strategy

Manufacturing Process

Distribution Network

27

Manufacturing Process

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

Water is received from the River Cauvery and it passes through the water treatment plant,

further passing through the sand filter and the activated carbon filter, so as to attain pure

cleansed water.

In the syrup room, the concentrate received from another bottling plant situated at Pune,

is blended with the sugar syrup

Once both the water and the final syrup are ready, they are both mixed together and sent

to the carbonator section where Carbon Dioxide is added to the mixture to form the final

product.

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected

and washed for the purpose of filling in the final product in it. This step does not take

place in the PET bottle line as the bottles once used are disposed.

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET

bottles), labeled and cased in order to be sent into the warehouse for distribution.

28

Distribution Network

Coca cola India has a wide and well managed network of salesmen appointed for taking

up the responsibility of distribution of products to diverse parts of the cities. The distribution

channels are constructed in such a way that the demand of customers is fulfilled at the right

place and the right time when it is needed by them.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse ---

Retail Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes,

and every salesman is assigned to one particular route, which is to be followed by him on a

daily basis. A detailed and well organized distribution system contributes to the efficiency of the

salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to higher

profits to the firm.

29

Chapter 4

Coca -Cola Marketing Strategy

Objectives/Goals

Target Market

Marketing mix

30

Coca Cola’s Marketing

Marketing is the role used by the business to plan, price, promote and distribute

products/services to individuals. The Coca-Cola Company's marketing includes:

Objectives/Goals Coca-Cola main objectives are to supply everyone their favorite drink and to satisfy the

consumer needs and wants. Coca-Cola second main objectives are to provide profit to the

shareholders and increase the market share.

Target Market The company's beverages are generally for all consumers. However, there are some

brands, which target specific consumers.

For example, Coca-Cola's diet soft drinks are targeted at consumers who are older in age,

between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do

sport. Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12.

This type of market approach refers to market segmentation. The Coca-Cola Company when

advertising has a primary target market of those who are 13-24, and a secondary market of 10-

39.

Marketing mix

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

main product being finished beverages. The business has over 300 brands of beverages around

the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and

PowerAde. The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres,

1.25 litres, 600mL and 300mL. These are also available in aluminum cans of 375mL. Coca-Cola

is the most well known trademark, recognized by 94 per cent of the world's population. The

business is very successful and holds a very good reputation.

Price The prices of Coca-Cola's products vary according to the brand and the size. The prices

of the main products are shown below.

Product Size Prices: Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite Coke, Fanta, Lift, Sprite

Coke, Fanta, Lift, Sprite Coca-Cola soft drinks Coca-Cola soft drinksPowerAde2L bottle1.25L

bottle600mL bottle300mL bottle375 x 30 cans375 x 18 cans.

The Coca-Cola Company's products are sold in retail stores, convenient stores, petrol

stations etc. The pricing methods/strategies are set by those the company sells to. Petrol stations

and convenient stores usually sell Coca-Cola products at a fixed price. However, retail outlet

uses pricing methods and pricing strategies when selling Coca-Cola products.

31

Competition-based pricing: Coca-Cola products are usually priced below, above or equal to its

competitors' prices.

Discount price: Coca-Cola products are often marked down during sale periods and special

occasions. This will generate sales Increase profits.

Promotion The business uses a range of promotional activities

Advertising: The Coca-Cola Company uses advertising as its main

source of increasing consumer awareness. It mainly uses the

television. There are many television advertisements on Coca-Cola

products. This source allows the company's products to reach a large

audience. One of the television advertisements for Coca-Cola soft

drinks was the 'You know you want it' advertisement. One of the older one are ' If you drink it,

you get better of life' the company also uses the radio as another source of advertisement. This is

a cheaper source of approach compared to the television. Recently, the company benefited from

its involvement in the world's celebrated games such as the Olympics and the FIFA World Cup.

Where millions were watching these games, the business had substantial advertising and

promotions of the company's brands

Personal selling: Every year, The Coca-Cola Company has a highly trained sales team, which

acts as a representative of the company to the retailers. This strategy helps to maintain service

and product loyalty. It has been demonstrated by the business to be highly effective.

Publicity: In February 2003, Vanilla Coke was released to the media as a news brief outlining

the huge profit achieved by the business (from the Sydney Morning Herald 14th February 2003).

This helped The Coca-Cola Company to strengthen the image of the business's products.

Placement The Coca-Cola Company sells its products to bottling and canning operations,

distributors, fountain wholesalers and some fountain retailers. They distribute them to retail

outlets, milk bar and corner stores, restaurants, petrol stations and newsagents.

Indirect distribution: The Coca-Cola Company uses intermediaries in its distribution. That is,

the company does not sell its products directly to its consumers.

Intensive distribution: The Coca-Cola Company uses the intensive distribution strategy. The

business's products are sold in almost every outlet including:

Retail outlets

Small shops

Restaurants

Petrol stations

Newsagents

Schools

Sports

Entertainment venues

32

Chapter 5

Brands of Coca Cola

Energy Drinks

Juices/Juice Drinks

Soft Drinks

Sports Drinks

Tea and Coffee

Water

Other Drinks

Indian Brands

33

Brands of Coca Cola

Coca-Cola Zero® has been one of the most successful product launches in

Coca Cola‘s history. In 2007, Coca Cola‘s sold nearly 450 million cases globally.

Put into perspective, that's roughly the same size as Coca Cola‘s total business in

the Philippines, one of our top 15 markets. As of September 2008, Coca-Cola Zero

is available in more than 100 countries.

Energy Drinks For those with a high-intensity approach to life, Coca Cola‘s

brands of Energy Drinks contain ingredients such as ginseng extract,

guarana extract, caffeine and B vitamins.

Juices/Juice Drinks We bring innovation to the goodness of juice in Coca Cola‘s

more than 20 juice and juice drink brands, offering both adults and

children nutritious, refreshing and flavorful beverages.

Soft Drinks Coca Cola‘s dozens of soft drink brands provide flavor and

refreshment in a variety of choices. From the original Coca-Cola to

most recent introductions, soft drinks from The Coca-Cola Company

are both icons and innovators in the beverage industry.

Sports Drinks Carbohydrates, fluids, and electrolytes team together in Coca

Cola‘s Sports Drinks, providing rapid hydration and terrific taste for

fitness-seekers at any level

Tea and Coffee Bottled and canned teas and coffees provide consumers' favorite

drinks in convenient take-anywhere packaging, satisfying both

traditional tea drinkers and today's growing coffee culture.

Water Smooth and essential, our Waters and Water Beverages offer

hydration in its purest form.

34

Other Drinks So much & more than soft drinks, Coca Cola‘s brands also include milk products, soup,

and more so you can choose a Coca Cola Company product

anytime, anywhere for nutrition, refreshment or other needs.

Indian Brands

Coca-Cola India Launches Fanta Apple Part of the phased launch, Fanta Apple will be initially made available to consumers in

the two Southern Indian States of Andhra Pradesh & Tamil Nadu, followed by a national roll out

in the next two months. The company has also signed up the young and charming Genelia

D‟Souza of „Bommarilu‟ „Boys‟ and „Jaane Tu Ya Jaane Na‟ fame as the new Fanta Brand

Ambassador.

35

Chapter 6

Objective of Study

Aims/Objective

Methodology

Limitations

Analysis and Findings

36

Aims/Objective

Understanding Indian Beverage Industry (carbonated & non-carbonated).

Understand Marketing Strategy of Coke.

Consumer perception towards Coke.

To understand buying behavior of consumers.

To understand image of coke vis-à-vis other brands.

To recommend for future course of action.

Methodology

Research Design: Descriptive research- also known as statistical research, describes data and

characteristics about the population. Descriptive research answers the questions who, what, where, when

and how.

Types of data collected

1. Primary data: based on questionnaire, will be distributed among consumers & direct interview will

be taken, to collect the data.

2. Secondary data: collected from organization, articles, magazines, books & newspaper research

reports.

3. Sampling: Stratified sampling technique will be considered. A sample size of 200 consumers will be

selected from Dwarka to study. The process of grouping members of the population into relatively

homogeneous subgroups before sampling. Proportionate allocation uses a sampling fraction in each

of the strata that is proportional to that of the total population. If the population consists of 60% in

the male stratum and 40% in the female stratum, then the relative size of the two samples (three

males, two females) should reflect this proportion.

4. Sample size: 200 consumers having history of consuming beverage will be selected as sample size

i.e. the total sample size will be 200 consumers. Than these samples were further divide into sub-

groups based on their age, gender etc.

5. Propose approach for future course of action is based on realistic information.

6. Project would be conducted in a particular area/zone.i.e. Dwarka

Limitations

1. Time constraints

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

37

Analysis and Findings

1. GENDER OF THE CONSUMER

Table 1. Gender of Consumer

52%48%

Gender of the consumer

Males

Females

Graph 1. Gender of Consumer

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Male 104 52 52 52

Female 96 48 48 100

Total 200 100 100

38

2. AGE GROUP OF THE CONSUMER

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Below 15 68 34 34 34

16 – 25 56 28 28 62

26 – 35 44 22 22 84

36 – 45 26 13 13 97

46 & Above 6 3 3 100

Total 200 100 100 100

Table 2- AGE GROUP OF CONSUMER

Graph 2 - AGE GROUP OF THE CONSUMER

39

3. OCCUPATION OF THE CONSUMER

Table 3 - OCCUPATION OF THE CONSUMER

13%

9%

26%49%

3%

Consumer Occupation

Professional

Businessman

Service

Student

Any other

Graph 3 - OCCUPATION OF THE CONSUMER

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Professional 26 13 13 18

Businessman 18 9 9 22

Service 52 26 26 48

Student 98 49 49 97

Any other 6 3 3 100

Total 200 100 100 100

40

4. NUMBER OF PEOPLE BUY COLD DRINKS

TABLE 4 – NUMBER OF PEOPLE BUYS COLD DRINK

97%

3%

Consumer Buy Cold

Drink

Yes

No

GRAPH 4 – CONSUMER BUYS COLD DRINK

Valid Frequency Percent Valid Percent Cumulative

Percent

Yes 194 97 97 97

No 6 3 3 100

Total 200 100 100

41

5. WHICH COLD DRINKS PEOPLE BUY

TABLE 5 – BRANDS OF COLD DRINK CONSUMER BUYS

19%

18%

12%11%9%

8%

23%

Consumer Buy Cold

Drink

COKE

PEPSI

7 UP

SPRITE

FANTA

MAZZA

THUMSUP

GRAPH 5 - BRANDS OF COLD DRINK CONSUMER BUYS

Valid Frequency Percent Valid Percent Cumulative

Percent

COKE 36 18 18 18

PEPSI 34 17 17 35

7 UP 24 12 12 47

SPRITE 22 11 11 58

FANTA 16 8 8 66

MAZZA 16 8 8 74

THUMSUP 52 26 26 100

Total 200 100.0 100.0

42

6. REASON TO PURCHASE COLA DRINKS

TABLE 6 – REASON OF PURCHASE

20%

25%

8%10%

16%

20%

1%

Consumer’s Buying

Reasons

Brand name

Taste

Brand ambassador

packaging

Easy availability

Price

Any other

GRAPH 6 – REASON OF PURCHASE

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Brand name 40 20 20 20

Taste 50 25 25 45

Brand ambassador 16 8 8 53

packaging 20 10 10 63

Easy availability 32 16 16 79

Price 40 20 20 99

Any other 2 1 1 100

Total 200 100 100

43

7. PEOPLE HAVE SEEN THE ADVERTISEMENT OF COLD DRINK

TABLE 7 – NUMBER OF PEOPLE SEEN/REMEMBER ADS

98%

2%

Consumer’s Remember Ads

YesNo

GRAPH 7 – NUMBER OF PEOPLE SEEN/REMEMBER ADS

Valid Frequency Percent Valid Percent Cumulative

Percent

Yes 196 98 98 98

No 4 2 2 100

Total 200 100 100

44

8. ADVERTISEMENT PEOPLE REMEMBER THE MOST

TABLE 8 – MOST EFFECTIVE ADS

GRAPH 8 – MOST EFFECTIVE ADS

Valid Frequency Percent Valid Percent Cumulative

Percent

Coke 54 27 27 27

Pepsi 56 28 28 55

7 Up 32 16 16 71

Sprite 42 21 21 92

Fanta 8 4 4 96

Mazza 6 3 3 99

THUMSUP 2 1 1 100

Total 200 100 100

45

9. REASON TO REMEMBER THE ADVERTISEMENT

Valid Frequency Percent Valid

Percent

Cumulative

Percent

Creativity 48 24 24 24

Brand ambassador 50 25 25 49

Idea of delivering message 22 11 11 60

Frequency of add 50 25 25 85

Logical reason 30 15 15 100

Total 200 100

TABLE 9 - REASON TO REMEMBER THE ADS

GRAPH 9 - REASON TO REMEMBER THE ADS

46

Chapter 7

Calculations

Testing of Hypothesis

Major Findings

Suggestions

Conclusion

Limitations of the Study

47

Testing Of Hypothesis

Hypothesis 1:

A. Null hypothesis (H0) = Taste is the preferred attribute which customers look for in Coke.

B. Alternate hypothesis (H1) = Taste is not the preferred attribute which customers looks for

in Coke.

Level of significance = Let 5% be the level of significance in testing the hypothesis Since

the test s two tailed test , the value of z = ±1.96

Test formula:-

p‾ - p

Z=

√ {p (1-p)/n}

Where

P = sample proportion (calculated from graph) = 25%

p¯ = population proportion (known) = 26%

n = sample size = 200

.26 - .25

Z =

√ {.25 (1-.25)/200}

=.25

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

Conclusion: Customer see the Coke because of it taste.

48

Hypothesis 2:

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

B. Alternate Hypothesis (H1) = Coke is not a youth (16 – 25) drink.

Level of significance= Let 5% be the level of significance in testing the hypothesis Since the

test s two tailed test , the value of z = ±1.96

Test formula:-

p‾ - p

Z=

√ {p (1-p)/n}

Where

P = sample proportion = 28%

P¯ =population proportion = 34%

n= sample size=200

Now

.34 – .28

Z=

√ {.28 (1-.28)/200}

= - 2.01

Calculated value is not fall in acceptance level ,so the hypothesis is rejected.

Conclusion: The Coke is not only Youth (16 – 25) drinks but it also drinks by teenagers

below 15.

49

Hypothesis 3:

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

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

Level of significance= Let 5% be the level of significance in testing the hypothesis Since the

test s two tailed test , the value of z = ±1.96

Test formula:-

p‾ - p

Z=

√ {p (1-p)/n}

Where

P = sample proportion = 48%

P¯= population proportion = 49%

N = sample size = 200

Now

.49 – .48

Z=

√ {.48 (1-.48)/200}

= . 33

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

Conclusion: The Coca Cola is readily famous among students.

50

Major Findings

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

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

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

49% are students.

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

buy.

5. 19% respondents prefer coke, 18% prefer Pepsi, 12% 7up, 11 % of them prefer Sprite,

9% Fanta, 8% prefer Mazza, and 23% prefer Thums-up.

6. 25% people purchase cold drinks because of taste, 20% people purchase cold drinks

because of brand name, 20% people purchase cold drinks because of packaging, 15%

people purchase cold drinks because of price, 11% people purchase cold drinks because

of brand ambassador, 8% people purchase cold drinks because of easy availability & 1%

people purchase cold drinks because of any other reason.

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

advertisement of any brands.

8. 23% people remember the advertisement of coke, 23% people remember the

advertisement of Pepsi, 1% people remember the advertisement of 7up, 6% people

remember the advertisement of sprite, 4% people remember the advertisement of Fanta,

10% people remember the advertisement of Mazza, and 23% people remember the

advertisement of Thums-up.

9. 24% people remember the advertisement because of creativity, 25% people remember the

advertisement because of brand ambassador, 11% people remember the advertisement

because of their idea of delivering the message, 25% people remember the advertisement

because of frequency of ads, and 15% people remember the advertisement because of

logical reason.

51

Suggestions

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

Perform a detail demand survey at regular interval to know about the unique needs and

requirements of the customer.

The company should make hindrance free arrangement for its customers/retailers to make

any feedback or suggestions as and when they feel.

The company should focus to bring some more flavors and variety of schemes rather then

bring second and repeat same old one. It is always better to be first than being better.

The company must be aware of and keep at least the latest knowledge of its primary

competitors in market and try to make a perfect anticipated efforts to meet the same

The company should also use time to time some more and new attractive system of word

of mouth advertisement to keep alive the general awareness in the whole market as a

whole.

The company should be always in a position to receive continuous feedback and

suggestions from its customers/ consumers as well as from

The market and try to solve it without any delay to establish its own good credibility.

The visibility of any product plays an important role in making the customer, aware about

it and is vital for the growth and development of any product.

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

consumers remember advertisement because of their brand ambassador.

A strong watch should be kept on distributors also, because in some cases they are found

to be cheating the retailers and affecting the goodwill of the BRAND.

52

Conclusion

During the course of the project I realized that the customer willingly answered the

closed end questions.

From the analysis of the data collected and from the experiences I have reached the

following conclusions:

COKE is most popular amongst its users mainly because of its TASTE,

BRAND NAME, INNOVATIVENESS Thus it should focus on good taste so

that it can capture the major part of the market. But most of the consumers

prefer THUMSUP as their 1st preference, then COKE

We come to the conclusion that visibility affects the sales of project in a very

special way. And in terms of the advertisements lays is lacking behind mostly

consumers remember the advertisement because of the frequency of add and

brand ambassadors, creativity.

After acquiring a new customer, there is lot of importance of its retention

also. This can be done only by providing extra flavors and good taste.

In today‟s scenario, customer is the king because he has got various choices

around him. If you are not capable of providing him the desired result he will

definitely switch over to the other provider. Therefore to survive in this

cutthroat competition, you need to be the best. Customer is no more loyal in

today‟s scenario, so you need to be always on your toes.

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

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

.

53

Limitations of the Study

Some of the respondents refused to fill the questionnaires.

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

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

Limitation of time.

The survey is conducted only in few areas of Delhi, Ghaziabad; hence the results may

vary in other parts of the cities.

Small sample size.

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

of the study.

The findings are based on the survey conducted in the month of January to March; the results

may vary in other months.

54

Bibliography

Text Books: Kotler Philip, “Marketing Management”, Pearson Education.

Beri G.C, “Marketing Research”, Third Edition.

Cooper Donald R. & Shindler Pamela S, “Business Research Methods”

Tata McGraw-Hill Edition Eighth.

Schiffman Leon G. & Kaunk Leslie Lazar, “Consumer Behavior” Pearson

Education, Eighth Edition.

Magazines and Journals 4 P’s of marketing

Economic Times

Brand Equity

Websites www.Coca cola.com

www.pepsi.com

www.indiainfoline.com

http://www.thecoca-colacompany.com

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Questionnaire

1. Name:

2. Age:

15-20 21-35

36-45 46-55

55 and above

3. Gender: M/F

4. Occupation:

Professional

Businessman

Service

Student

Any other

5. Do you drink Soft Drinks? Yes / No

6. If yes, which Soft Drinks? Coke/Pepsi

7. Carbonated Drinks / Fruit Drinks

8. Which cola drink do you prefer most?

Coke

Pepsi

7up

Sprite

Fanta

Mazza

Thumsup

9. Which packages do u prefer most ?

Pet bottle

Glass bottle

10. About Cola drink what do you like the most?(PLEASE RATE THEM from 1-6)

Brand name

Taste

Easy availability

Packaging

Price

Brand ambassador

Any other (please specify)

11. Have you seen any advertisement of ANY Cola drinks?

Yes No

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12. Advertisement of which Cola drinks do you remembers the most?

Coke

Pepsi

7up

Sprite

Fanta

Mazza

Thumsup

13. What attracted you in the advertisement?( PLEASE RATE THEM from 1-3)

Creativity

Brand ambassador

Idea of delivering the message

Frequency of add

Logical reason

14. Have you decided to purchase any connection after watching the advertisement?

Yes No

15. What is your opinion of the brand?

o Excellent

o Good

o Fair

o Poor

16. What is your monthly consumption?

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

18. Any suggestions

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