A summer training Project Report titled Major Challenges of Market at Amrit Bottlers Pvt. Ltd. (franchisee of CCI) Submitted in partial fulfillment of the requirement for the Award of degree of Master of Business Administration degree from Dr. A.P.J Abdul Kalam Technical University, Uttar Pradesh, Lucknow SUBMITTED BY: Abhinav Chaturvedi MBA III SEMESTER 1702970007 Under the guidance of “Mr. ANKIT SRIVASTAVA” (Area Sales Manager) 2017-2019
DEPARTMENT OF MBA KIET GROUP OF INSTITUTIONS, GHAZIABAD 13 KM STONE, GHAZIABAD-MEERUT ROAD (U.P) 201206
CERTIFICATE OF THE HOD
To Whom It May Concern
This is to certify that MR. ABHINAV CHATURVEDI, Roll No. ‘1702970007’ is the student of MBA III SEMESTER and had successfully completed his project on “A CASE STUDY OF MAJOR CHALLENGES OF MARKET”.
DATE
Dr. K R CHATURVEDI (HOD)
DECLARATION
I ABHINAV CHATURVEDI, Roll No.1702970007 student of MBA III Semester of KIET School of Management, Ghaziabad hereby declare that the project report on “A CASE STUDY OF MAJOR CHALLENGES OF MARKET”, is an original and authenticated work done by me. I further declare that it has not been submitted elsewhere by any other person if any of the declare that it has not been submitted by elsewhere by any other person in any of the university for the award of any degree or diploma.
DATE
Faculty Name- Dr RANCHAY BHATEJA
ACKNOWLEDGEMENT
I would like to express my heartfelt thanks to many people. This report is an effort to contribute towards attainment of the desired objectives. We have utilized all available resources and made use of some external resources, the result of which, over a period of time, led to the attainment of the set goals.
I take here a great opportunity to express my sincere and deep sense of gratitude to Mr. ANKIT SRIVASTAVA for giving me an opportunity to work on this project. The support & guidance from gentelmen, was of great help & it was extremely valuable.
I also express my sincere thanks to all the people who, directly or indirectly, contributed in time, energy and knowledge to this effort.
ABHINAV CHATURVEDI Roll No:1702970007
PREFACE
“Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.”
“Perform or get perished” it is the only principle today’s dynamic and highly competitive business world follows. The soft drink market in our country is seasonal and highly price sensitive and competitive as well. As every business depends on its customer, this sector is also depends on the taste and preference of the customers. And it is the most difficult task to identify the changes taking place in the taste and preference of the customers and to fulfill them, because these things get change very frequently. The task become more difficult if you are dealing in the country like INDIA, where a lot or variety is get to see in taste and preference of different states and every company has to face competition with an unidentified unorganized sector in the form of local juice sellers etc.
EXECUTIVE SUMMARY
There is growing competition between soft drink companies in the post economic reform in India. For companies it is always difficult to accurately estimate the change in taste of customer, which flavor should be launched.
Research was carried out to find which types of challenges company faces while placing its product in the market.
This study suggests that company has to lose its leading position in the market if it does not overcome its shortcomings very soon.
“Getting top position is difficult but retention of the same is even harder.” To survive and to hold the market leader position in this highly competitive era its vital to understand the strategy of the competitors, to keep eyes over new players and to continuous improvement in our own system. Through this report we will also able to understand, what are our Company’s positive and strong points, on which we can bank upon, and by enhancing them we can boost up our market share.
TABLE OF CONTENT CONTENT
PAGE NO.
CHAPTER 1 INTRODUCTION
10
LITERATURE REVIEW
11-25
OBJECTIVE OF STUDY
26
CHAPTER 2 INTRODUCTION OF INDUSTRY
28-42
INTRODUCTION OF COMPANY
43-77
RESEARCH METHODOLOGY
78-82
CHAPTER 3 DATA ANALYSIS & INTERPRETATION
84-92
CHAPTER 4 FINDINGS
94-95
SUGGESTIONS
96-97
CONCLUSION LIMITATION OF STUDY
98 99-100
APPENDIX BIBLIOGRAPHY
102
QUESTIONNAIRE
103
CHAPTER 1
INTRODUCTION
“A boat in the roaring ocean cannot survive until its sail is get tighten according to the wind” In the same way if any company wants to grow it has to be alert regarding comprtitors’ planning and its own shortcomings, and is possible only if company come to know about the same. In this report we have tried to identify the problems/challenges faced by the company due to entrance new players and its own shortcomings.
Since reach to the consumer is very difficult therefore we have targeted retailers of our study as they have direct contact with the consumers and also product is finally placed by them, as company do not have its own retail point. The success of the company is depends on maximum possible sale and the same can be achieved only if retailer and distributers are satisfied with the company’s policies and strategies. Our research is based on the retailers of Ayodhya.
LITERATURE REVIEW
CARBONATED SOFT-DRINK MARKET The carbonated soft drinks (CSD) sector is a mature category in the beverages market. In recent years it has gone through multiple changes, and this state of flux is expected to continue in the near future. In this new bulletin, Smithers Pira examines the state of the market and the top trends expected to occur in the carbonated soft drinks industry until 2018. Who are the main players? The carbonated soft drinks market continues to be dominated by Coca Cola and PepsiCo, whose globally strong brand values tend to keep less branded and cheaper value offerings at bay. The importance of brand cannot be overstated in this category. One of the reasons for Coca Cola and PepsiCo's enormous success has been the fact that they have built massive brand legacies founded on significant advertising budgets, honing in on the emotional and lifestyle attachments of the product they market. CSDs have relatively low price points and margins compared to some other consumer goods categories, thus impacting on brand owner's inclination to add additional costs through packaging innovation. The industry is trying to find ways to deliver the product in terms of effective and efficient product delivery that is fit for purpose but in a more cost-effective way from a manufacturing perspective.
Does the industry face any challenges? Pressure remains on this industry from health lobbyists looking for improvements to drinkers' diets, particularly when it comes to childhood obesity. Consequently, there has been a shift from high-sugar carbonated soft drinks to healthier and often sugar free, diet or inferred health varieties often delivering comparable taste and quality. The sports drink market has grown significantly in recent times and is a threat to CSD's 'share of throat', particularly when considering the similar target audiences. There has also been a proliferation of functional soft drinks that offer energy solutions and this has become far more sophisticated in terms of flavours, usage and packaging variants. Packaging remains a key weapon in the panoply with special editions and pack variants being a conventional way of helping brands stand out and to build brand values. What are the main drivers? The main driver of packaging change is related to reducing costs. If brand owners can identify a particular consumer benefit to attach to a change, then they can base a marketing campaign around it. Packaging is about winning the battle at the point of sale in terms of shelf stand out and the communication of iconic brand values. Most of the industry's effort is centred on this 'moment of truth'. Sustainability is also on the agenda. Manufacturers need to be responsible and show it is high on their agendas. Consumer choices are not driven by the pack's green credentials. Coca cola is a great example of finding a good balance between sustainability and good design with the plant bottle. They have sacrificed brand equities and the pack is more sustainable than normal PET. Functional attributes are important in carbonated soft drinks with preservation of quality a key packaging feature. Packaging remains a key weapon in the panoply with special
editions and pack variants being a conventional way of helping brands stand out and to build brand values. Are there opportunities for packaging innovation? In the coming years to 2018, product innovation will be focused on brand extension that offer flavour derivatives, sugar-free and healthier permutations. Product development is an important area for the industry to create incremental volumes and point of difference. This means plenty of new flavours, new and improved recipes as well as new textures. Focus will continue on PET bottles for stand out and differentiation. PepsiCo announced in March 2013 that they were launching a new ergonomic bottle shape. The etched, gripable bottom allows consumers to have a more stimulating, tactile interaction with the bottle itself. The dynamic swirled grip at the base of the bottle is also intended to help consumers hold their favourite drink. There will be opportunities to create premium products in this sector and take a cue from other beverage markets. The aluminium bottle has been used successfully as a value added enhancer in the beer industry. It plays well on consumer benefits both emotional and perceptual and makes the whole experience seem more refreshing and premium and the perception that the product stays cooler for longer. It is also quite eco-friendly from a sustainability perspective. Reclosable ring pull cans could meet a consumer need for resealable packaging, particularly for higher volume.
INDIAN SOFT DRINK MARKET
History of Indian Soft drink Market
Indian Soft Drinks Market 1970’s and early 80’s—the entry and exit of Coke India has proved to be perhaps the toughest battle ground for the Cola giants. Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%.
Up till 1977, Coca-cola was the leading soft drink brand in India. But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable.
Pure drinks, Delhi launched Campa-Cola, to take advantage of Coke’s exit and by the end of 70’s, was the only Cola drink in the Indian market. In 1980, Parle, another major
Indian player launched Thumbs Up, the drink which till date is most popular soft-drink in India. Pure Drinks strongly objected to Thumbs Up being called a “soft” drink as it felt its taste is too strong. For over a decade, Parle led the Indian soft-drinks market, with its market share reaching a peak of 70% in1990.
Late 80’s and early 90’s— Pepsi’s struggle to enter India Pepsi saw the exit of Coke as a God send opportunity to capture then estimated 900 crore market of India. India was then a highly regulated market with International trade constituting only 6% of GDP in 1985. Foreign trade was subject to import tariffs, export tariffs and quantitative restrictions. Foreign direct investment (FDI) was restricted by barriers like upper limit equity participation, restrictions on technology transfer, export obligations and government approvals. Any foreign investment had a lot of political sensitivity to it. By the time PepsiCo began its negotiations, the upper cap for equity holding in Indian companies was 40%. PepsiCo realized it’ll have to be creative to enter the Indian markets.
Attempt 1: In May 1985, PepsiCo joined hands with the RPG group to form Agro Product Export Limited. It planned to import Cola concentrate and sell soft-drinks under the Pepsi label and in return offered to export Juice Concentrate from Punjab. The government rejected the proposal due to its using a foreign name and importing the concentrate.
Attempt 2: Pepsi decided to play the Punjab Card by promising to invest $15 million in Punjab, establish an Agro Research centre (costing Rs 1.55 crores), a potato and grain based processing unit (costing Rs 8 crores) and a fruit and vegetable processing unit (costing Rs 5 crores). Benefits and proposal included better market for rice, wheat and fruits in Punjab, creation of 25000 jobs in Punjab and 25000 more in other areas. In 1988, government agreed. PepsiCo entered as Lehar Pepsi and by 1991, it was clear that most of its promises were just on paper.
The company did improved the productivity in India, introduced farmers to new technology, established agriculture research centers in Jallowal and Channo (in Punjab) and Nelamangla in Karnataka and invested more capital than promised (by the year 2000, total investment was Rs 18 billion), but the picture on many other aspects was gloomy. The planned operations in Punjab were delayed and as a result, local farmers had to bear a combined loss of Rs. 2.5 Million. Pepsi paid only 0.75 Rs/Kg of Tomato compared to open market price of Rs 2/Kg. Employment was provided to only 783 people as compared to 50,000 promised (although company claimed it to be 26,000 due to direct and indirect operations). It began exporting tea, rice, shrimps, glass bottles, leather products as against fruits and vegetable products. There was an even a show-cause notice to Pepsi by the ministry of commerce. Luckily for PepsiCo, in 1991, the government of India liberated the economy on grounds of severe foreign exchange crisis and Pepsi was freed from all the commitments it had made during entry
INDIAN SOFT DRINK MARKET: PRESENT SCENARIO
India, which is renowned for its consumption of traditional hot beverages such as tea and coffee, has now taken to cold drinks in a big way. Demand for cold drinks is witnessing growth at a fast pace especially among younger section of the population. Though India is a tropical country with long summers, consumption of carbonated beverages stands at roughly 5-6 bottles per year compared to around 21 bottles in Sri Lanka and as high as 605 bottles in Mexico. Low advertisement reach and lack of cold storage facilities are hampering the demand for select segments of cold drinks in rural markets. Players are trying to penetrate rural markets by offering low priced unit sized packaging formats. The organized carbonated drinks market has a large share of multinational players. There are also several small and regional players who cater to local market with cola and non-cola drinks. Overall cold drinks market was valued at INR 193 billion in 2013-14, of which carbonated soft drinks accounts for a major share of around 62%. Fruit-based drinks is largely an urban phenomenon, especially the fruit juice category. Packaging is a vital aspect in the beverage market- apart from branding and promotion, the package also assumes importance from storage, transportation and environment perspectives. Carbonated soft drinks are mainly sold in returnable glass bottles (RGB),
aluminium cans, and PET bottles. Fruit juice and fruit nectar categories are mainly sold in liquid packaging cartons Coca Cola India and PepsiCo India together account for around 85% of the overall carbonated beverage market in India, of which Coca Cola accounts for over 55%followed by PepsiCo with a market share of around 35%. Coca Cola’s ‘Maaza’ leads the market in the fruit drink category followed by Parle Agro’s ‘Frooti’ Coca Cola India and PepsiCo India:Key brands
Both Coca-Cola and PepsiCo have planned for significant investment in the region. Coca-Cola reiterated its plans, first announced in 2012, to invest USD 5 billion into its regional operations before 2020. PepsiCo also committed USD 5 billion into the company’s Indian business by the end of 2020; of this amount, INR 1.2 billion has been allocated to set up its second beverage manufacturing plant at Sri City in Andhra Pradesh.
WHAT’S BUBBLING UP IN INDIA’S SOFT DRINK MARKET?
Even though traditional and homemade drinks will always remain popular, packaged beverages are gaining traction with Indian consumers who are now frequently reaching for their more convenient-to-consume counterparts—soft drinks. While consumption is on the rise, soft drink manufacturers have some distance to go before they fully capitalise on the opportunity. Over the past two years, the soft drink industry has seen a value growth of 11% compound annual growth rate (CAGR) and a volume growth of 5% CAGR. In total, 1.25 billion people in the country drink 5.9 billion litres of soft drinks in a year. This makes India’s per capita soft drinks consumption large, but just 1/20th of that of the U.S., 1/10th of Kuwait, 1/8th of Thailand and Philippines, and one-third of Malaysia’s. Driving up per capita consumption of soft drinks in India, calls for decisive action by the industry to catch up with the growth rate of other fast moving consumer goods (FMCG) including the food basket, which currently outpace soft drinks (Food CAGR is 9%). Over years, the soft drinks category has also been affected by issues related to health concerns and pressure from government policies. However, there have been sporadic efforts to drive growth in rural areas in recent years, which have received only a tepid response, as rural consumption levels still stand at two-third of that of consumption in urban areas. The challenge for this industry therefore, is to restore its pace of volume growth by increasing the per capita consumption of soft drinks in India, catch up with international consumption levels of soft drinks and perform at par with other FMCG categories in India, like salty snacks, chocolates and biscuits. The Three Growth Drivers For The Soft Drink Segment Small evolving segments like energy drinks may not be sufficient to either drive the per capita consumption or bring in the desired growth for this category. The first challenge
that this category faces is to outpace other impulse consumption and traditional options available and clock high single-digit growth in volume. Moreover, the category is dependent on soaring summer temperatures across the country, and a delayed onset of rain and winter can affect demand. We identified three winning strategies that give growth impetus to India’s soft drink category.
Continuous and aggressive focus on innovations
Making the category season-neutral
Focus on execution
BEVERAGE OF CHOICE Among all beverages, we see that carbonated soft drinks (CSD) are firmly in the lead, followed by non-carbonated mango-flavoured drinks.
Where’s the market going? With Narendra Modi’s announcement at ‘Start-up programme’ asking the beverage giants to at least include 2% fruit drinks in the aerated drinks giving a growth projections
to farmers who are a major growth driver in the development of food processing industry in India seems going smooth with soft drink makers launching tweaked products. Ramesh Chauhan, the father of the Indian soft drink industry and founder of India's largest packaged water brand Bisleri, is planning a comeback with a new range of fizzy drinks, twenty-two years after selling the country's most loved soft drink brands Thums Up, Limca, Citra and Gold Spot to US beverage giant Coca-Cola. At a time when government is building high on ‘Make in India’ products, this development may lead to disrupt the Rs 14,000 crore beverage market in India. Entering with four new flavours that are being test-marketed at five locations around the country includes Pina Colada, Fonzo (a fruity flavour), Spicy Cola and Limmonata (a lemony drink). “The soft drinks are being priced at around Rs 15 for 300ml PET bottles and Rs 10 for 200ml PET bottles. Later, we will introduce cans," said Chauhan, who sold his earlier brands to Coca-Cola for around $40 million in 1993.
Going ‘Make in India’ way At a time when brands like Coca Cola and PepsiCo together contributes to over 60 per cent of the fast evolving beverages market, tweaking the menu would be the best way to still stand as the major player in the fast evolving Indian market. PepsiCo which introduced Tropicana Mosambi in December and is planning to launch a series of juices with locally-produced fruits including mango, guava, pomegranate, litchi and jamun, has signed a pact with Maharashtra government to promote fruit processing and horticulture in the state. "Food and beverages localisation is very important. We already have a plant Citrus International in Nanded, Maharashtra and we continue to invest in it so that we use a lot more of the local fruits in our product," shared Shiv Shivakumar, Chairman, PepsiCo India.
This could be the part of its committed investment of Rs 33,000 crore in the country by 2020 and this is one way to ensure that fruit use by PepsiCo from the farmers improves. “Fruit-based drinks are growing faster and with this pact PepsiCo will continue to accelerate its on-ground work in Maharashtra to catalyse farming, improve yields and transform the fruit processing industry through several initiatives,” added Shivakumar. Going on the same lines, Coca-Cola India, one of the country's leading beverage companies, has announced the pilot launch of its new innovation - Fanta Green Mango. 'Juice with Fizz' category - at the on-going Make in India Summit in Mumbai. Fanta Green Mango has been developed specifically for the Indian palate at Coca-Cola India's R&D centre in Gurgaon with inputs from the R&D centres in Atlanta and Shanghai. Made from fruit procured from local farms and local pulp processors, Fanta Green Mango will straddle in the spaces of "goodness of juice" with the "effervescent imagery and lightness of palate" that is typically associated with sparkling beverages.
The product contains 10.4% mango juice content and promises to provide the consumers an authentic taste experience with an extra zing of carbonation. The product will be made available in the convenient 300 ml can at an attractive price point. "The launch of our latest 'Juice with Fizz' innovation, is rooted in the government's vision for the food processing sector and the role that the beverage industry can play in benefitting Indian farmers,” said Venkatesh Kini, President, Coca-Cola India and South West Asia. As part of this pilot launch, Fanta Green Mango will be available in Delhi and NCR and will initially be retailed through the e-commerce platform - Grofers and eventually expanded to modern trade as well. “The addition of Fanta Green Mango will allow us to further leverage our system's value chain in procuring ingredients and raw materials from the fruit farming community,” added Kini. And, hence, going in line with Modi’s bigger plan, these MNCs may heat up the market adding more ‘Juice with Fizz’ in India.
Objective of Study Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. Our research study has following objectives:-
Primary Objective: - To know the impact of entrance of new players over sale of the company.
Secondary Objective: 1. To know the market share of different players in Share Market. 2. To study the schemes offered by different players to the customer. . 3. To check satisfaction level of customers with the service of different players.
CHAPTER 2
INTRODUCTION TO INDUSTRY
2016 saw the emergence of many small and regional soft drinks companies such as Manpasand Beverages and Hector Beverages, among others, all of which are fighting for retail shelf space with global giants such as Coca-Cola India and PepsiCo India, among other major multinational players, and these smaller players are performing well. This has led to competition in soft drinks becoming even more intense. Nevertheless, Coca-Cola India continued to lead soft drinks in 2016, mainly due to its wide portfolio of brands including Thums Up, Sprite, Limca and Fanta. Government and consumers shift towards juice-based carbonates Juice and juice-based carbonates remained among the most important priorities for India’s leading soft drinks companies in 2016, especially in light of the emphasis of India’s central government on the manufacture of fresh fruit-based drinks and the slowing growth seen in non-fruit based carbonates categories over the review period. For example, Coca-Cola India launched Fanta Green Mango in 2016, which was quite popular among consumers. This product was launched after Prime Minister Narendra Modi asked the country’s major soft drinks companies to add at least 5% fruit-based content to their products and it became popular primarily because of its refreshing taste. Healthier soft drinks options expected to drive growth during the forecast period
Increasing health awareness among Indian consumers and their rising preference for health and wellness products are likely to be among the major reasons for the strong growth expected in juice over the forecast period. On the other hand, carbonates, both cola carbonates and non-cola carbonates are likely to see sustained slowdowns in volume growth rates over the forecast period and this is likely to be related to the increasing consumer preference for health and wellness products, which is set to be among the major reasons for consumer demand drifting away from carbonates.
The Indian soft drink market is poised to grow at an annual rate of 28-30 per cent for 30 years, an industry official said today.
Demand for fruit drinks and packaged juice products increased dramatically during the last ten years, while the overall market size of the soft drink market stands at a whopping Rs 65,000 crore, Vadodara-based fruit drinks maker Manpasand Beverages' CMD Dhirendra Singh said here.
"Out of that, the market size of juice or fruit drink segement is Rs 8,000 crore while the carbonated drinks segment stands at Rs 25,000 crore. Bottled water and other drinks make up the rest of the market. As per our estimates, this industry is growing at a rate of 28 per cent to 30 per cent annually and will maintain that pace for 30 years," Singh said.
He was here to announce Manpasand Beverages' Rs 400-crore initial public offering (IPO) which will hit markets on June 24 to raise up to Rs 400 crore, to fund its expansion
plans, including a new manufacturing unit in Ambala in Haryana. The IPO will close on June 26, he said.
Despite the seemingly large size of India's soft drink market, he claimed that the nation lags behind not only Western countries, but also Pakistan. "As per a report, India's per capita consumption of soft drinks is three litres, while it is almost 90 litres in USA and 16 litres in Pakistan. In a country of more than 120 crore people, if consumption increases from three litres to six litres, I am sure that no company can fulfil that demand. Such is the potential size of our market," Singh said.
MAJOR PLAYERS IN THE REGION
1.
Coca Cola
2.
PepsiCo
3.
Dabur
4.
Parle
5.
Campa
The Coca-Cola Company, which is headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware, is an American multinational beverage corporation, and manufacturer, retailer, and marketer of nonalcoholic beverage concentrates and syrups The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand were bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892. The company has operated a franchised distribution system since 1889, wherein The Coca-Cola Company only produces syrup concentrate, which is then sold to various bottlers throughout the world who hold exclusive territories. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments. The company's stock is listed on the NYSE (NYSE: KO) and is part of DJIA, the S&P 500 index, the Russell 1000 Index, and the Russell 1000 Growth Stock Index. Muhtar Kent serves as chairman of the company with James Quincey as president and chief executive officer.
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which have included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio. As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion apiece,and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion Based on net revenue, PepsiCo is the second largest food and beverage business in the world. Within North America, PepsiCo is the largest food and beverage business by net revenue. Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. The company's beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. Approximately 274,000 employees generated $66.415 billion in revenue as of 2013.
PRODUCTS PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of 53 percent foods, and 47 percent beverages. On a worldwide basis, the company's current
products lines include several hundred brands that in 2009 were estimated to have generated approximately $108 billion in cumulative annual retail sales. The primary identifier of a food and beverage industry main brand is annual sales over $1 billion. As of 2015, 22 PepsiCo brands met that mark, including: Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, 7 Up, Doritos, Lipton Teas, Brisk, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked, Kevita, Propel, Sobe, H2oh, Sabra, Starbucks (ready to Drink Beverages), Pepsi Max, Tostitos, Mist Twst, Fritos, and Walkers.
COMPETITION
The Coca-Cola Company has historically been considered PepsiCo's primary competitor in the beverage market, and in December 2005, PepsiCo surpassed The Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. In 2009, The Coca-Cola Company held a higher market share in carbonated soft drink sales within the U.S. In the same year, PepsiCo maintained a higher share of the U.S. refreshment beverage market, however, reflecting the differences in product lines between the two companies. As a result of mergers, acquisitions, and partnerships pursued by PepsiCo in the 1990s and 2000s, its business has shifted to include a broader product base, including foods, snacks, and beverages. The majority of PepsiCo's revenues no longer come from the production and sale of carbonated soft drinks. Beverages accounted for less than 50 percent of its total revenue in 2009. In the same year, slightly more than 60 percent of PepsiCo's beverage sales came from its primary non-carbonated brands, namely Gatorade and Tropicana.
PepsiCo's Frito-Lay and Quaker Oats brands hold a significant share of the U.S. snack food market, accounting for approximately 39 percent of U.S. snack food sales in 2009. One of PepsiCo's primary competitors in the snack food market overall is Kraft Foods, which in the same year held 11 percent of the U.S. snack market share. Other competitors for soda are RC Cola, Cola Turka, Kola Real, Inca Kola, Zamzam Cola, Mecca-Cola, Virgin Cola, Parsi Cola, Qibla Cola, Evoca Cola, Corsica Cola, Breizh Cola, and Afri Cola.
Parle Products was founded in 1929 in British India. It was owned by the Chauhan family of Vile Parle, Mumbai. The original Parle company was split into three separate companies owned by the different factions of the original Chauhan family:
Parle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Kismi Toffee Bar, Monaco and Krack Jack)
Parle Agro, led by Prakash Chauhan and his daughters. (owner of the brands such as
Frooti and Appy)
Parle Bisleri, led by Ramesh Chauhan
All three companies continue to use the family trademark name "Parle". Parle Agro Parle Agro commenced operations in 1984. It started with beverages, and later diversified into bottled water (1993), plastic packaging (1996) and confectionery (2007). Frooti, the first product rolled out of Parle Agro in 1985, became the largest selling mango drink in India. Separation from the parent company
The original Parle group was amicably segregated into three non-competing businesses. But a dispute over the use of "Parle" brand arose, when Parle Agro diversified into the confectionery business, thus becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing confectionery products. Later, Parle Agro launched its confectionery products under a new design which did not include the Parle brand name.In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products belong to a separate company, which has no relationship with Parle Products. Parle Agro brands Parle Agro Pvt. Ltd operates under three major business verticals:
Beverages – fruit drinks, nectars, juice, sparkling drinks
Water – packaged drinking water
Foods – confectionery, snacks
Parle Agro also diversified into production of PET preforms (semi-finished bottles) in 1996. Its customers include companies in the beverages, edible oil, confectionery and pharmaceutical segments. Beverages Citra A clear lemon and lime flavoured soda sold in India in the 1980s and early '90s. Frooti
Launched in 1985, Frooti was India's only beverage sold in a Tetra Pak packaging at the time. It went on to become the largest selling Mango drink in the country. Frooti's website has some Frooti mocktail recipes on their website. Appy Appy Classic was launched in 1986 as an apple nectar and originally available in a white Tetra Pak packaging with an apple and leaf graphic. As of 2011, it comes in black Tetra Pack packaging. It was the first apple nectar to be launched in India. Appy Fizz Launched in 2005, Appy Fizz is India’s first sparkling apple drink available in a champagne shaped PET bottle. Saint Juice Launched in 2008, Saint Juice is available in three variants – Orange, Mixed fruit, Grape and Apple. At the time of its launch, its USP was "100% juice with no added color, sugar or preservatives". LMN LMN was launched in March 2009, as non-carbonated lemon drink (nimbu paani or lemonade) Grappo Fizz Launched in 2008, Grappo Fizz is a sparkling grape juice drink. Credited with creating the sparkling fruit drinks category in India, Grappo Fizz is along the lines of existing product Appy Fizz.
Dhishoom In 2012, Parle Agro launched India's first Jeera Masala Soda, Dhishoom. It packs a flavourful punch with every sip. Frio Frio is a range of flavoured carbonated drinks. A refreshing new addition to the Parle Agro portfolio, it is currently available in 3 flavours - Lemon, with sweet lime juicy notes, Orange, with a zingy sweet burst and Cola, with a strong fizzy punch. Cafe Cuba Launched in 19 May 2013,It's a new product & first of its kind ;Cafe Cuba is a carbonated Cuban coffee, more of a bottled Espresso. Flavour : Strong Coffee with little sugar, Helps to activate your energy levels up high. Bailley Soda Launched in 2010, Bailley Soda, with its evocative packaging and impeccable taste. Their packaging theme is inspired by military colours and also the bottles are made like grenade. Frooti Fizz Launched in March 2017, Frooti Fizz is a sparkling mango juice drink. Bollywood actress Alia Bhatt has signed a deal with Parle Agro to endorse the product.[15] Frooti Fizz is available in 250ml PET bottle, 500ml PET bottle and 250ml can. Water
Parle Agro have launched BAILLEY packaged drinking water.
it has also introduced pouches of drinking water.
Food Confectionary
Mintrox mints (launched in 2008), hard mint candy available in 2 flavors
Buttercup candies (launched in 2008), hard boiled candy; it is targeted at kids and
adults alike.
Buttercup Softease, a toffee available in 4 flavors
Softease Mithai, a toffee available in 3 flavors
Snacks
Hippo (launched in 2008), baked snack available in six flavors
Hippo Namkeens, is an assortment of traditional snacks from various parts of India.
Hippo Namkeens is now available in a range of seven traditional Indian snacks: Aloo Bhujia, Chana Dal, Moong Dal, Sev Bhujia, Masala Peanuts, Khatta Meetha, Navratan Mixture.
Dabur India Ltd announced its foray into the fizzy drinks market with the launch of a range of fruit juice-based aerated drinks. The new range, Real VOLO, has been prepared using a blend of berry fruits like Cranberry, Blueberry, Blackberry and Grape. The range will be available in 250ml cans priced at Rs 40
"Today's health conscious consumers prefer healthier beverage options. We have been witnessing an increase in consumer demand for ready-to-drink beverages that are aerated but not unhealthy. With Real VOLO, we are meeting this consumer demand with a range of fizzy fruit drinks. Our Real VOLO range contains 20-25% fruit juice. Consumers can now have a can of Real VOLO without consuming carbonated drinks," Dabur India Ltd category head-fruit juices and beverages, Mayank Kumar said.
Real VOLO, which does not have any added preservatives, is being launched in two variants, Cranberry-Blueberry, and Grape-Blackcurrant. The company plans to extend this range in the coming months with the introduction of newer variants.
"Dabur pioneered the concept of packaged fruit juices in India with the launch of with Real and were also the first to introduce 100% fruit juices and fruit-vegetable juices under with Real Activ. We expanded the category with India's first fruit fiber beverage Real Activ Fiber+ and are now expanding our range with the launch of fruit juice-based aerated drinks with with Real VOLO. With the launch of Real VOLO, we aim to not only
extend brand Real to give our consumers more choices but also make the experience of consuming aerated beverages more enjoyable and nutritious," Kumar added.
CAMPA COLA Campa Cola is a soft drink brand in India. It was a market leader in most regions of India for a period spanning several years until the advent of the foreign players Pepsi and Coca-Cola after the liberalisation policy of the P. V. Narasimha Rao Government in 1991. Campa Cola was a drink created by the Pure Drinks Group in the 1970s. The Pure Drinks Group pioneereed the Indian soft drink industry when it introduced Coca-Cola into India in 1949, and were the sole manufacturers and distributors of Coca-Cola till the 1970s when Coke was asked to leave. The Pure Drinks Group and Campa Beverages Pvt. Ltd. virtually dominated the entire Indian soft drink industry for about 15 years, and then started Campa Cola during the absence of foreign competition. The brand's slogan was "The Great Indian Taste", an appeal to nationalism. Following the return of foreign corporations to the soft drink market in the 1990s popularity of Campa Cola declined. In 2000-2001 the bottling plant and offices in Delhi were closed. In 2009 a small amount of product was still being bottled in the state of Haryana but the drink was hard to find.
INTRODUCTION TO THE COMPANY
“REFRESHING THE WORLD,ONE STORY AT A TIME”
History 19th-century historical origins
Eagle Drug and Chemical House in Columbus, Georgia
John Pemberton, the original inventor of Coca-Cola
Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. By 1913, the company had redeemed 8.5 million tickets.
This Coca-Cola advertisement from 1943 is still displayed in Minden, Louisiana.
Early Coca-Cola bottling machine at Biedenharn Museum and Gardens in Monroe, Louisiana Confederate Colonel John Pemberton, who was wounded in the American Civil War and became addicted to morphine, began a quest to find a substitute for the problematic drug.The prototype Coca-Cola recipe was formulated at Pemberton's Eagle Drug and Chemical House, a drugstore in Columbus, Georgia, originally as a coca wine. He may have been inspired by the formidable success of Vin Mariani, a French coca wine.It is also worth noting that a Spanish drink called "Kola Coca" was presented at a contest in Philadelphia in 1885, a year before the official birth of Coca-cola. The patent for this Spanish drink was bought by Coca-Cola in 1953. In 1885, Pemberton registered his French Wine Coca nerve tonic. In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, a nonalcoholic version of French Wine Coca.The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health.Pemberton claimed Coca-Cola cured many diseases, including morphine addiction, indigestion, nerve disorders, headaches, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola – sold by three separate businesses – were on the market. A co-partnership had been formed on January 14, 1888 between Pemberton and four Atlanta businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy, and E.H. Bloodworth. Not codified by any signed document, a verbal statement given by Asa Candler years later asserted under testimony that he had acquired a stake in Pemberton's company as early as 1887. John Pemberton declared that the name "Coca-Cola" belonged to his son, Charley, but the other two manufacturers could continue to use the formula. Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor that allowed for him to participate as a major shareholder in the March 1888 CocaCola Company incorporation filing made in his father's place.Charley's exclusive control over the "Coca Cola" name became a continual thorn in Asa Candler's side. Candler's oldest son, Charles Howard Candler, authored a book in 1950 published by Emory University. In this definitive biography about his father, Candler specifically states: "..., on April 14, 1888, the young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an almost completely unknown proprietary elixir known as Coca-Cola."
Old German Coca-Cola bottle opener. The deal was actually between John Pemberton's son Charley and Walker, Candler & Co. – with John Pemberton acting as cosigner for his son. For $50 down and $500 in 30 days, Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company
that Charley held, all while Charley still held on to the name. After the April 14 deal, on April 17, 1888, one-half of the Walker/Dozier interest shares were acquired by Candler for an additional $750. The Coca-Cola Company In 1892, Candler set out to incorporate a second company; "The Coca-Cola Company" (the current corporation). When Candler had the earliest records of the "Coca-Cola Company" burned in 1910, the action was claimed to have been made during a move to new corporation offices around this time. After Candler had gained a better foothold on Coca-Cola in April 1888, he nevertheless was forced to sell the beverage he produced with the recipe he had under the names "Yum Yum" and "Koke". This was while Charley Pemberton was selling the elixir, although a cruder mixture, under the name "Coca-Cola", all with his father's blessing. After both names failed to catch on for Candler, by the middle of 1888, the Atlanta pharmacist was quite anxious to establish a firmer legal claim to Coca-Cola, and hoped he could force his two competitors, Walker and Dozier, completely out of the business, as well. On August 16, 1888, Dr. John Stith Pemberton suddenly died; Asa G. Candler then sought to move swiftly forward to attain his vision of taking full control of the whole Coca-Cola operation. Charley Pemberton, an alcoholic, was the one obstacle who unnerved Asa Candler more than anyone else. Candler is said to have quickly maneuvered to purchase the exclusive rights to the name "Coca-Cola" from Pemberton's son Charley right after Dr. Pemberton's death. One of several stories was that Candler bought the title to the name from Charley's mother for $300; approaching her at Dr. Pemberton's funeral. Eventually, Charley
Pemberton was found on June 23, 1894, unconscious, with a stick of opium by his side. Ten days later, Charley died at Atlanta's Grady Hospital at the age of 40. In Charles Howard Candler's 1950 book about his father, he stated: "On August 30th [1888], he [Asa Candler] became sole proprietor of Coca-Cola, a fact which was stated on letterheads, invoice blanks and advertising copy." With this action on August 30, 1888, Candler's sole control became technically all true. Candler had negotiated with Margaret Dozier and her brother Woolfolk Walker a full payment amounting to $1,000, which all agreed Candler could pay off with a series of notes over a specified time span. By May 1, 1889, Candler was now claiming full ownership of the Coca-Cola beverage, with a total investment outlay by Candler for the drink enterprise over the years amounting to $2,300. In 1914, Margaret Dozier, as co-owner of the original Coca-Cola Company in 1888, came forward to claim that her signature on the 1888 Coca-Cola Company bill of sale had been forged. Subsequent analysis of certain similar transfer documents had also indicated John Pemberton's signature was most likely a forgery, as well, which some accounts claim was precipitated by his son Charley. On September 12, 1919, Coca-Cola Co. was purchased by a group of investors for $25 million and reincorporated. The company publicly offered 500,000 shares of the company for $40 a share. In 1986, The Coca-Cola Company merged with two of their bottling operators (owned by JTL Corporation and BCI Holding Corporation) to form Coca-Cola Enterprises Inc. (CCE). In December 1991, Coca-Cola Enterprises merged with the Johnston Coca-Cola Bottling Group, Inc.
Origins of bottling
Bottling plant of Coca-Cola Canada Ltd. January 8, 1941. Montreal, Canada. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. The proprietor of the bottling works was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design of 1915 now so familiar. It was then a few years later that two entrepreneurs from Chattanooga, Tennessee, namely Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-Cola bottling company. Candler remained very content just selling his company's syrup.The loosely termed contract proved to be problematic for The Coca-Cola Company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers. This contract specified that bottles would be sold at 5¢ each and had no fixed duration, leading to the fixed price of Coca-Cola from 1886 to 1959. 20th century The first outdoor wall advertisement that promoted the Coca-Cola drink was painted in 1894 in Cartersville, Georgia.Cola syrup was sold as an over-the-counter dietary
supplement for upset stomach.[35][36] By the time of its 50th anniversary, the soft drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Atlanta Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.
Original framed Coca-Cola artist's drawn graphic presented by The Coca-Cola Company on July 12, 1944 to Charles Howard Candler on the occasion of Coca-Cola's "1 Billionth Gallon of Coca-Cola Syrup."
Claimed to be the first installation anywhere of the 1948 model "Boat Motor" styled Coca-Cola soda dispenser, Fleeman's Pharmacy, Atlanta, Georgia. The "Boat Motor" soda dispenser was introduced in the late 1930s and manufactured till the late 1950s. Photograph circa 1948.
The longest running commercial Coca-Cola soda fountain anywhere was Atlanta's Fleeman's Pharmacy, which first opened its doors in 1914. Jack Fleeman took over the pharmacy from his father and ran it until 1995; closing it after 81 years.On July 12, 1944, the one-billionth gallon of Coca-Cola syrup was manufactured by The Coca-Cola Company. Cans of Coke first appeared in 1955. New Coke Main article: New Coke
The Las Vegas Strip World of Coca-Cola museum in 2003 On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed most consumers preferred the taste of New Coke to both Coke and Pepsi[41] but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula using high fructose corn syrup instead of cane sugar as the main sweetener, under the name Coca-Cola Classic, on July 10, 1985.
21st century On July 5, 2005, it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab League boycotted the company in 1968. In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "CocaCola". The word "Classic" was removed because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged. In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-US-fluid-ounce (470 ml) bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image.The word "Classic" was removed from all Coca-Cola products by 2011. In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke for two months; a separate pouring rights deal in 2013 saw Coke products removed from Costco food courts in favor of Pepsi. Some Costco locations (such as the ones in Tucson, Arizona) additionally sell imported Coca-Cola from Mexico with cane sugar instead of corn syrup from separate distributors. Coca-Cola introduced the 7.5-ounce mini-can in 2009, and on September 22, 2011, the company announced price reductions, asking retailers to sell eight-packs for $2.99. That same day, Coca-Cola announced the 12.5-ounce bottle, to sell for 89 cents. A 16-ounce bottle has sold well at 99 cents since being re-introduced, but the price was going up to $1.19. In 2012, Coca-Cola resumed business in Myanmar after 60 years of absence due to U.S.imposed investment sanctions against the country. Coca-Cola's bottling plant will be located in Yangon and is part of the company's five-year plan and $200 million investment in Myanmar. Coca-Cola with its partners is to invest USD 5 billion in its
operations in India by 2020. In 2013, it was announced that Coca-Cola Life would be introduced in Argentina that would contain stevia and sugar. In August 2014 the company announced it was forming a long-term partnership with Monster Beverage, with the two forging a strategic marketing and distribution alliance, and product line swap. As part of the deal Coca-Cola was to acquire a 16.7% stake in Monster for $2.15 billion, with an option to increase it to 25%. In December 2016, Coca-Cola bought many of the former SABMiller's Coca-Cola operations. Production Ingredients
Carbonated water
Sugar (sucrose or high-fructose corn syrup (HFCS) depending on country of origin)
Caffeine
Phosphoric acid
Caramel color (E150d)
Natural flavorings
A typical can of Coca-Cola (12 fl ounces/355 ml) contains 38 grams of sugar (usually in the form of HFCS), 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories. On May 5, 2014, Coca-Cola said it is working to remove a controversial ingredient, brominated vegetable oil, from all of its drinks. Formula of natural flavorings Main article: Coca-Cola formula
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are listed on the side of the bottle or can) is a trade secret. The original copy of the formula was held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919. On December 8, 2011, the original secret formula was moved from the vault at SunTrust Banks to a new vault containing the formula which will be on display for visitors to its World of Coca-Cola museum in downtown Atlanta.
Coca-Cola Museum in Atlanta, Georgia According to Snopes, a popular myth states that only two executives have access to the formula, with each executive having only half the formula. However, several sources state that while Coca-Cola does have a rule restricting access to only two executives, each knows the entire formula and others, in addition to the prescribed duo, have known the formulation process. On February 11, 2011, Ira Glass said on his PRI radio show, This American Life, that TAL staffers had found a recipe in "Everett Beal's Recipe Book", reproduced in the February 28, 1979, issue of The Atlanta Journal-Constitution, that they believed was either Pemberton's original formula for Coca-Cola, or a version that he made either before or after the product hit the market in 1886. The formula basically matched the one found in Pemberton's diary.Coca-Cola archivist Phil Mooney acknowledged that the recipe "could ... be a precursor" to the formula used in the original 1886 product, but
emphasized that Pemberton's original formula is not the same as the one used in the current product. Use of stimulants in formula
An early Coca Cola advertisement. When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name CocaCola (the "K" in Kola was replaced with a "C" for marketing purposes). Coca – cocaine Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891, Candler claimed his formula (altered extensively from Pemberton's original) contained only a tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per glass. (For comparison, a typical dose or "line" of cocaine is 50–75 mg.) In 1903, it was removed.
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves – the leftovers of the cocaine-extraction process with trace levels of cocaine. Since then, CocaCola uses a cocaine-free coca leaf extract prepared at a Stepan Company plant in Maywood, New Jersey.[71] In the United States, the Stepan Company is the only manufacturing plant authorized by the Federal Government to import and process the coca plant,which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St. Louis, Missouri, pharmaceutical manufacturer that is the only company in the United States licensed to purify cocaine for medicinal use. Long after the syrup had ceased to contain any significant amount of cocaine, in the southeastern U.S., "dope" remained a common colloquialism for Coca-Cola, and "dopewagons" were trucks that transported it. Kola nuts – caffeine Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example, the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to 3.5% caffeine, are of bitter flavor, and are commonly used in cola soft drinks. In 1911, the U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a product's label. Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml). Franchised production model
The actual production and distribution of Coca-Cola follows a franchising model. The Coca-Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores, vending machines, restaurants, and food service distributors. The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company, and Coca-Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the world. Independent bottlers are allowed to sweeten the drink according to local tastes. The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling Company". Geographic spread Since it announced its intention to begin distribution in Burma in June 2012, Coca-Cola has been officially available in every country in the world except Cuba and North Korea.However, it is reported to be available in both countries as a grey import. Coca-Cola has been a point of legal discussion in the Middle East. In the early 20th century, a fatwa was created in Egypt to discuss the question of "whether Muslims were permitted to drink Coca-Cola and Pepsi cola."[82] The fatwa states: "According to the Muslim Hanefite, Shafi'ite, etc., the rule in Islamic law of forbidding or allowing foods and beverages is based on the presumption that such things are permitted unless it can be shown that they are forbidden on the basis of the Qur'an."[82] The Muslim jurists stated
that, unless the Qu'ran specifically prohibits the consumption of a particular product, it is permissible to consume. Another clause was discussed, whereby the same rules apply if a person is unaware of the condition or ingredients of the item in question. Brand portfolio This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-free version of the original, additional fruit flavors have been included over the years. Not included here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-calorie colas can be found at their respective articles.
Caffeine-Free Coca-Cola (1983–present) – Coca-Cola without the Caffeine.
Coca-Cola Cherry (1985–present) – Coca-Cola with a Cherry Flavor. Was
available in Canada starting in 1996. Called "Cherry Coca-Cola (Cherry Coke)" in North America until 2006.
New Coke / Coca-Cola II (1985–2002) - A short-lived formula change, remained
after the original formula returned and was later rebranded as Coca-Cola II.
Coca-Cola with Lemon (2001–05) – Coca-Cola with a Lemon flavor. Available in:
Australia, American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau, Malaysia, Mongolia, Netherlands, New Caledonia, New Zealand, Réunion, Singapore, Spain, Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza
Coca-Cola Vanilla (2002–05; 2007–present) – Coca Cola with a Vanilla flavor.
Available in: Austria, Australia, China, Czech Republic, Finland, Germany, Hong Kong, New Zealand, Malaysia, Slovakia, South-Africa, Sweden, Switzerland, United Kingdom, and United States. It was reintroduced in June 2007 by popular demand.
Coca-Cola with Lime (2005–present) – Coca-Cola with a Lime flavor. Available in
Belgium, Netherlands, Singapore, Canada, the United Kingdom, and the United States.
Coca-Cola Raspberry (2005) – Coca-Cola with a Raspberry flavor. Was only
available in New Zealand. Currently available in the United States and the United Kingdom in Coca-Cola Freestyle fountain since 2009.
Coca-Cola Black Cherry Vanilla (2006–07) – Coca-Cola with a combination of
Black Cherry and Vanilla flavor. It replaced and was replaced by Vanilla Coke in June 2007.
Coca-Cola Blāk (2006–08) – Coca-Cola with a rich coffee flavor, formula depends
on country. Only available in the United States, France, Canada, Czech Republic, Bosnia and Herzegovina, Bulgaria, and Lithuania
Coca-Cola Citra (2005–present) – Coca-Cola with a citrus flavor. Only available
in Bosnia and Herzegovina, New Zealand, and Japan.
Coca-Cola Orange (2007) – Coca-Cola with an orange flavor. Was available in the
United Kingdom and Gibraltar for a limited time. In Germany, Austria, and Switzerland it is sold under the label Mezzo Mix. Currently available in Coca-Cola Freestyle fountain outlets in the United States since 2009 and in the United Kingdom since 2014.
Coca-Cola Life (2013–present) – A version of Coca-Cola with stevia and sugar as
sweeteners rather than just simply sugar.
Coca-Cola Ginger (2016–present) – A version that mixes in the taste of ginger beer.
Only available in Australia and New Zealand. Logo design The Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson, in 1885.Robinson came up with the name and chose the logo's distinctive cursive script. The writing style used, known as Spencerian script, was developed in the
mid-19th century and was the dominant form of formal handwriting in the United States during that period. Robinson also played a significant role in early Coca-Cola advertising. His promotional suggestions to Pemberton included giving away thousands of free drink coupons and plastering the city of Atlanta with publicity banners and streetcar signs. Contour bottle design The Coca-Cola bottle, called the "contour bottle" within the company, was created by bottle designer Earl R. Dean. In 1915, The Coca-Cola Company launched a competition among its bottle suppliers to create a new bottle for their beverage that would distinguish it from other beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and so shaped that, even if broken, a person could tell at a glance what it was." Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana, turned the project over to members of his supervisory staff, including company auditor T. Clyde Edwards, plant superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware of what either ingredient looked like. Dean and Edwards went to the Emeline Fairbanks Memorial Library and were unable to find any information about coca or kola. Instead, Dean was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopædia Britannica. Dean made a rough sketch of the pod and returned to the plant to show Root. He explained to Root how he could transform the shape of the pod into a bottle. Root gave Dean his approval.
Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next 24 hours Dean sketched out a concept drawing which was approved by Root the next morning. Dean then proceeded to create a bottle mold and produced a small number of bottles before the glass-molding machinery was turned off. Chapman Root approved the prototype bottle and a design patent was issued on the bottle in November 1915. The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts. Dean resolved this issue by decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour bottle was chosen over other entries and was on the market the same year. By 1920, the contour bottle became the standard for The Coca-Cola Company. A revised version was also patented in 1923. Because the Patent Office releases the Patent Gazette on Tuesday, the bottle was patented on December 25, 1923, and was nicknamed the "Christmas bottle." Today, the contour Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!". As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job at the Root Glass Company. He chose the lifetime job and kept it until the OwensIllinois Glass Company bought out the Root Glass Company in the mid-1930s. Dean went on to work in other Midwestern glass factories. One alternative depiction has Raymond Loewy as the inventor of the unique design, but, while Loewy did serve as a designer of Coke cans and bottles in later years, he was in the French Army the year the bottle was invented and did not emigrate to the United States until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to a Victorian hooped dress. In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took advantage of a case involving a waitress injured by an exploding Coca-Cola bottle to
articulate the doctrine of strict liability for defective products. Traynor's concurring opinion in Escola v. Coca-Cola Bottling Co. is widely recognized as a landmark case in U.S. law today. Types
Earl R. Dean's original 1915 concept drawing of the contour Coca-Cola bottle
The prototype never made it to production since its middle diameter was larger than its base, making it unstable on conveyor belts.
Final production version with slimmer middle section. Designer bottles Karl Lagerfeld is the latest designer to have created a collection of aluminum bottles for Coca-Cola. Lagerfeld is not the first fashion designer to create a special version of the famous Coca-Cola Contour bottle. A number of other limited edition bottles by fashion designers for Coca-Cola Light soda have been created in the last few years. In 2009, in Italy, Coca-Cola Light had a Tribute to Fashion to celebrate 100 years of the recognizable contour bottle. Well known Italian designers Alberta Ferretti, Blumarine, Etro, Fendi, Marni, Missoni, Moschino, and Versace each designed limited edition bottles. Competitors Pepsi, the flagship product of PepsiCo, The Coca-Cola Company's main rival in the soft drink industry, is usually second to Coke in sales, and outsells Coca-Cola in some markets. RC Cola, now owned by the Dr Pepper Snapple Group, the third largest soft drink manufacturer, is also widely available. Around the world, many local brands compete with Coke. In South and Central America Kola Real, known as Big Cola in Mexico, is a growing competitor to Coca-Cola.On the
French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas season. In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke began to outpace its sales. In the former East Germany, Vita Cola, invented during Communist rule, is gaining popularity. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased Thums Up in 1993.As of 2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due to a United States embargo. French brand Mecca Cola and British brand Qibla Cola are competitors to Coca-Cola in the Middle East.[citation needed] In Turkey, Cola Turka, in Iran and the Middle East, Zamzam Cola and Parsi Cola, in some parts of China, China Cola, in Slovenia, Cockta, and the inexpensive Mercator Cola, sold only in the country's biggest supermarket chain, Mercator, are some of the brand's competitors. Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar, is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft drink on Madeira. Advertising See also: Coca-Cola slogans
An 1890s advertisement showing model Hilda Clark in formal 19th-century attire. The ad is titled Drink Coca-Cola 5¢. (US).
Coca-Cola ghost sign in Fort Dodge, Iowa. Older Coca-Cola ghosts behind Borax and telephone ads. April 2008.
Coca-Cola delivery truck of Argentina, with the slogan "Drink Coca-Cola – delicious, refreshing".
Coca-Cola's advertising has significantly affected American culture, and it is frequently credited with inventing the modern image of Santa Claus as an old man in a red-andwhite suit. Although the company did start using the red-and-white Santa image in the 1930s, with its winter advertising campaigns illustrated by Haddon Sundblom, the motif was already common. Coca-Cola was not even the first soft drink company to use the modern image of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for its ginger ale in 1923, after first using him to sell mineral water in 1915.Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian actress Hilda Clark as its spokeswoman. 1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a series of advertisements informing consumers that "Coke means Coca-Cola". In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing", produced by Billy Davis, became a hit single.
The typeface You 2 that was created for the "Share a Coke" campaign
Coca-Cola sales booth on the Cape Verde island of Fogo in 2004.
Coke advertisement in Budapest, 2013. Coke's advertising is pervasive, as one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as their preferred beverage. This is especially true in southern areas of the United States, such as Atlanta, where Coke was born. Some Coca-Cola television commercials between 1960 through 1986 were written and produced by former Atlanta radio veteran Don Naylor (WGST 1936–1950, WAGA 1951–1959) during his career as a producer for the McCann Erickson advertising agency. Many of these early television commercials for Coca-Cola featured movie stars, sports heroes, and popular singers.
During the 1980s, Pepsi-Cola ran a series of television advertisements showing people participating in taste tests demonstrating that, according to the commercials, "fifty percent of the participants who said they preferred Coke actually chose the Pepsi." Statisticians pointed out the problematic nature of a 50/50 result: most likely, the taste tests showed that in blind tests, most people cannot tell the difference between Pepsi and Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its leadership in the market. Selena was a spokesperson for Coca-Cola from 1989 until the time of her death. She filmed three commercials for the company. During 1994, to commemorate her five years with the company, Coca-Cola issued special Selena coke bottles. The Coca-Cola Company purchased Columbia Pictures in 1982, and began inserting Coke-product images into many of its films. After a few early successes during CocaCola's ownership, Columbia began to under-perform, and the studio was sold to Sony in 1989. Coca-Cola has gone through a number of different advertising slogans in its long history, including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it". In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where consumers earn points by entering codes from specially marked packages of Coca-Cola products into a website. These points can be redeemed for various prizes or sweepstakes entries. In Australia in 2011, Coca-Cola began the "share a Coke" campaign, where the CocaCola logo was replaced on the bottles and replaced with first names. Coca-Cola used the
150 most popular names in Australia to print on the bottles. The campaign was paired with a website page, Facebook page, and an online "share a virtual Coke". The same campaign was introduced to Coca-Cola, Diet Coke & Coke Zero bottles and cans in the UK in 2013. Coca-Cola has also advertised its product to be consumed as a breakfast beverage, instead of coffee or tea for the morning caffeine. 5 cents Main article: The fixed price of Coca-Cola from 1886 to 1959 From 1886 to 1959, the price of Coca-Cola was fixed at five cents, in part due to an advertising campaign. Holiday campaigns
A Freightliner Coca-Cola Christmas truck in Dresden, Germany, 2004. The "Holidays are coming!" advertisement features a train of red delivery trucks, emblazoned with the Coca-Cola name and decorated with Christmas lights, driving
through a snowy landscape and causing everything that they pass to light up and people to watch as they pass through. The advertisement fell into disuse in 2001, as the Coca-Cola company restructured its advertising campaigns so that advertising around the world was produced locally in each country, rather than centrally in the company's headquarters in Atlanta, Georgia. In 2007, the company brought back the campaign after, according to the company, many consumers telephoned its information center saying that they considered it to mark the beginning of Christmas. The advertisement was created by U.S. advertising agency Doner, and has been part of the company's global advertising campaign for many years. Keith Law, a producer and writer of commercials for Belfast CityBeat, was not convinced by Coca-Cola's reintroduction of the advertisement in 2007, saying that "I don't think there's anything Christmassy about HGVs and the commercial is too generic." In 2001, singer Melanie Thornton recorded the campaign's advertising jingle as a single, Wonderful Dream (Holidays are Coming), which entered the pop-music charts in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to radio, employing several variations of the jingle. In 2011, Coca-Cola launched a campaign for the Indian holiday Diwali. The campaign included commercials, a song, and an integration with Shah Rukh Khan's film Ra.One. Sports sponsorship Coca-Cola was the first commercial sponsor of the Olympic games, at the 1928 games in Amsterdam, and has been an Olympics sponsor ever since. This corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Most recently, Coca-Cola has released localized commercials for the 2010 Winter Olympics in Vancouver; one Canadian commercial referred to Canada's
hockey heritage and was modified after Canada won the gold medal game on February 28, 2010 by changing the ending line of the commercial to say "Now they know whose game they're playing". Since 1978, Coca-Cola has sponsored the FIFA World Cup, and other competitions organized by FIFA. One FIFA tournament trophy, the FIFA World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called "FIFA — Coca Cola Cup". In addition, Coca-Cola sponsors the annual Coca-Cola 600 and Coke Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor Speedway in Concord, North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola has a long history of sports marketing relationships, which over the years have included Major League Baseball, the National Football League, the National Basketball Association, and the National Hockey League, as well as with many teams within those leagues. Coca-Cola has had a longtime relationship with the NFL's Pittsburgh Steelers, due in part to the now-famous 1979 television commercial featuring "Mean Joe" Greene, leading to the two opening the Coca-Cola Great Hall at Heinz Field in 2001 and a more recent Coca-Cola Zero commercial featuring Troy Polamalu. Coca-Cola is the official soft drink of many collegiate football teams throughout the nation, partly due to Coca-Cola providing those schools with upgraded athletic facilities in exchange for Coca-Cola's sponsorship. This is especially prevalent at the high school level, which is more dependent on such contracts due to tighter budgets. Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the Indian subcontinent. Coca-Cola is also one of the associate sponsor of Delhi Daredevils in Indian Premier League.
In England, Coca-Cola was the main sponsor of The Football League between 2004 and 2010, a name given to the three professional divisions below the Premier League in soccer (football). In 2005, Coca-Cola launched a competition for the 72 clubs of The Football League — it was called "Win a Player". This allowed fans to place one vote per day for their favorite club, with one entry being chosen at random earning £250,000 for the club; this was repeated in 2006. The "Win A Player" competition was very controversial, as at the end of the 2 competitions, Leeds United A.F.C. had the most votes by more than double, yet they did not win any money to spend on a new player for the club. In 2007, the competition changed to "Buy a Player". This competition allowed fans to buy a bottle of Coca-Cola or Coca-Cola Zero and submit the code on the wrapper on the Coca-Cola website. This code could then earn anything from 50p to £100,000 for a club of their choice. This competition was favored over the old "Win a Player" competition, as it allowed all clubs to win some money. Between 1992 and 1998, CocaCola was the title sponsor of the Football League Cup (Coca-Cola Cup), the secondary cup tournament of England. Between 1994 and 1997, Coca-Cola was also the title sponsor of the Scottish League Cup, renaming it the Coca-Cola Cup like its English counterpart. Coca-Cola is the presenting sponsor of the Tour Championship, the final event of the PGA Tour held each year at East Lake Golf Club in Atlanta, GA. Introduced March 1, 2010, in Canada, to celebrate the 2010 Winter Olympics, Coca-Cola sold gold colored cans in packs of 12 355 mL (12 imp fl oz; 12 US fl oz) each, in select stores. In 2012, Coca-Cola (Philippines) hosted/sponsored the Coca-Cola PBA Youngstars in the Philippines.
In mass media
Coca-Cola advertised on a Volkswagen T2 in Maringá, Paraná, Brazil, 2012. Coca-Cola has been prominently featured in countless films and television programs. Since its creation, it remains as one of the most prominent elements of the popular culture.[citation needed] It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must Be Crazy, among many others. It provides a setting for comical corporate shenanigans in the novel Syrup by Maxx Barry. In music, in the Beatles' song, "Come Together", the lyrics say, "He shoot Coca-Cola, he say...". The Beach Boys also referenced Coca-Cola in their 1964 song "All Summer Long" (i.e. "'Member when you spilled Coke all over your blouse?") The best selling artist of all time and worldwide cultural icon, Elvis Presley, promoted Coca-Cola during his last tour of 1977. The Coca-Cola Company used Elvis' image to promote the product. For example, the company used a song performed by Presley, A Little Less Conversation, in a Japanese Coca-Cola commercial. Other artists that promoted Coca-Cola include the Beatles, David Bowie, George Michael, Elton John, and Whitney Houston, who appeared in the Diet Coca-Cola commercial, among many others. Not all musical references to Coca-Cola went well. A line in "Lola" by the Kinks was originally recorded as "You drink champagne and it tastes just like Coca-Cola." When the
British Broadcasting Corporation refused to play the song because of the commercial reference, lead singer Ray Davies re-recorded the lyric as "it tastes just like cherry cola" to get airplay for the song. Political cartoonist Michel Kichka satirized a famous Coca-Cola billboard in his 1982 poster "And I Love New York." On the billboard, the Coca-Cola wave is accompanied by the words "Enjoy Coke." In Kichka's poster, the lettering and script above the Coca-Cola wave instead read "Enjoy Cocaine." Medicinal application Coca-Cola is sometimes used for the treatment of gastric phytobezoars. In about 50% of cases studied, Coca-Cola alone was found to be effective in gastric phytobezoar dissolution. Unfortunately, this treatment can result in the potential of developing small bowel obstruction in a minority of cases, necessitating surgical intervention. Criticism Main article: Criticism of Coca-Cola Criticism of Coca-Cola has arisen from various groups, concerning a variety of issues, including health effects, environmental issues, and business practices. The Coca-Cola Company, its subsidiaries and products have been subject to sustained criticism by both consumer groups, leftist activists, and watchdogs, particularly since the early 2000s. Coca-Cola is rich in sugar, especially sucrose, which causes dental caries when consumed regularly. Besides this, the high caloric value contributes to obesity. Both are major health issues in the developed world.
Colombian death-squad allegations In July 2001, the Coca-Cola company was sued over its alleged use of political far-right wing death squads (the United Self-Defense Forces of Colombia) to kidnap, torture, and kill Colombian bottler workers that were linked with trade union activity. Coca-Cola was sued in a US federal court in Miami by the Colombian food and drink union Sinaltrainal. The suit alleged that Coca-Cola was indirectly responsible for "contracted with or otherwise directed paramilitary security forces that utilized extreme violence and murdered, tortured, unlawfully detained or otherwise silenced trade union leaders". This sparked campaigns to boycott Coca-Cola in the UK, US, Germany, Italy, and Australia. Javier Correa, the president of Sinaltrainal, said the campaign aimed to put pressure on Coca-Cola "to mitigate the pain and suffering" that union members had suffered. Speaking from the Coca-Cola company's headquarters in Atlanta, company spokesperson Rafael Fernandez Quiros said "Coca-Cola denies any connection to any human-rights violation of this type" and added "We do not own or operate the plants". A documentary on the controversy, titled The Coca-Cola Case, was released in 2010.
Use as political and corporate symbol
As sold in China
Astronauts served Coca-Cola from this device on the Space Shuttle in 1995. Coca-Cola has a high degree of identification with the United States, being considered by some an "American Brand" or as an item representing America. During World War II,
this gave rise to brief production of the White Coke as a neutral brand. The drink is also often a metonym for the Coca-Cola Company. Coca-Cola was introduced to China in 1927, and was very popular until 1949. When the Cultural Revolution began in 1949, the beverage was no longer imported into China, as it was perceived to be a symbol of decadent Western culture and the capitalist lifestyle. Importation and sales of the beverage resumed in 1979, after diplomatic relations between the United States and China were restored. There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's early investment in Israel during the Arab League boycott of Israel (its competitor Pepsi stayed out of Israel). Mecca Cola and Pepsi have been successful alternatives in the Middle East. A Coca-Cola fountain dispenser (officially a Fluids Generic Bioprocessing Apparatus or FGBA) was developed for use on the Space Shuttle as a test bed to determine if carbonated beverages can be produced from separately stored carbon dioxide, water, and flavored syrups and determine if the resulting fluids can be made available for consumption without bubble nucleation and resulting foam formation. FGBA-1 flew on STS-63 in 1995 and dispensed pre-mixed beverages, followed by FGBA-2 on STS-77 the next year. The latter mixed CO₂, water, and syrup to make beverages. It supplied 1.65 liters each of Coca-Cola and Diet Coke. Social causes In 2012, Coca-Cola was listed as a partner of the (RED) campaign, together with other brands such as Nike, Girl, American Express, and Converse. The campaign's mission is to prevent the transmission of the HIV virus from mother to child by 2015 (the campaign's byline is "Fighting For An AIDS Free Generation").
RESEARCH METHODOLOGY
TYPES OF RESEARCH
The research is based on Descriptive and Qualitative research.
Descriptive Research:- Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research.
Qualitative Research:- The research needs to find out retailers behavioral approach toward company’s policy . So this is based on all qualitative data. In short, Qualitative research is especially important in the behavioral sciences where the aim is to discover the underline motives of human behavior. Through such research we can analyses various factors which motivate to people to behave in a particular manner or which make people like or dislike a particular thing.
SAMPLE DESIGN “A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting item for the sample”
Generally Sample designs are two types
1. PROBABILITY SAMPLE DESIGN
2. NON PROBABILITY SAMPLE DESIGN
In the research Non-probability research design is used.
SAMPLING AREA
Sampling area may be a geographical one, such as state, district, village etc. The researcher will have to decide one or more of such area that he has to select for his study.
In this research study Ayodhya as a sampling area.
SAMPLING UNIT
Sampling unit may be defined as an individual, pair or group of persons included as respondent.
In this research study Retailers are the sampling units.
SIZE OF SAMPLE
“This refers to the number of items to be selected from the universe to constitute a sample”
In the present research sample size is 100.
SOURES OF DATA COLLECTION
While deciding about the method of data collection to be used for the study the researcher should keep to types of data.
1.
Primary Data.
2.
Secondary Data.
Research uses primary data, as well as secondary data. Primary means collected as fresh, and the first time data and secondary means which are already available like annual report, magazines, internet, previously researches etc.
SURVEY METHOD Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents of the concerned area. In a survey the investigator examines those phenomena which exist in the universe independent of his action. Research uses the
Questionnaire Method.
CHAPTER 3
DATA ANALYSIS
The data after collection has proposed & analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan.
The data collected in the stated manner tabulated according to the corresponding variables. The table thus prepared were analyzed & interpreted to draw the meaning, out of the study. 1) Sale of which company is highest? Cocacola PepsiCo
Parle
Divya
Campa
Xalta
45
10
12
12
6
15
Sales
COCA-COLA PEPSICO PARLE Divya campa xalta
COMMENT It shows that still we are market leader, and major reason behind it is that our competitors do not have variety in product line as we have.
2) Which company’s product sale is highest other than coca cola? PepsiCo
Parle
Campa
Xalta
Dabur
other
40
15
10
15
10
10
Sales
PepsiCO
CAMPA XALTA PARLE OTHERS
COMMENT PepsiCo is biggest competitor globally. BUT here it is lagging behind due to lack of variety, in the subjected market there is no identical nearest competitor, the game is coca cola versus all, still we can give this position to the PepsiCo
3). Maximum margin? Coke
PepsiCo Xalta
Campa Divya
Parle
Others
7
17
23
12
5
22
14
margin% coca-cola pepsiCO xalta campa divya parle others
COMMENT: We did not get any satisfactory answer of this question. The reason was as we know that local companies and new players always give more margins to the retailers.
4).Sale of coca cola’s product is increased or decreased in recent years? Increased
Decreased
34
66
Sales
increased decreased
COMMENT Since company is reporting overall growth more than our findings, we cannot rely on this finding. The reason behind this difference is that there are number of new retail outlets have been popped up in recent years consequently total sale of the company is increased but sale per outlet has been increased very slightly even some retailers reported decrement as well.
5). Which company provides longest credit period? Coca-
pepsico
xalta
campa
parle
others
16
22
24
17
14
cola 7
credit period coca cola pepsico xalta campa parle others
COMMENT
To increase the sales new players or such companies who have comparatively smaller market size, offers longer credit period.
The same thing we got to see here.
6). Do you think you are getting same scheme what company allowed? Yes
No
17
83
Relibility%
yes no
COMMENT Around 80% retailer think that distributor do not give them the same scheme what company gives him. There is a great dissatisfaction among them since they don’t have any option therefore they accept whatever distributor give them.
7) Are you satisfied with the company’s grievance redressal system ? Yes
No
09
91
satisfaction level
yes no
COMMENT: Majority of people are not satisfied with the company’s grievance redressal system, because customer support division do not respond according to commitment made by themselves.
8) Sale of juice based drinks like Mazza, Frooti, Fizz etc.? Increased
Decreased
70
30
Sales
increased decreased
COMMENT: Significant increase in sale of this type of drink has been observed as now customers are becoming more health conscious.
CHAPTER 4
FINDINGS
Coca cola is market leader, it’s like Coca cola versus all .
Sale of Companies flagship product COCA COLA is significantly low.
Number of new players has been entered into the market but since they are in penetration stage there is significant impact of their existence over sale of the company.
Although it is a credit based market still credit period given by small companies do not affect sale.
There are two distributor of coca cola operating in same area therefore it leads to more credit base sale instead of cash sales because if one of them do not give goods on credit then retailer contact to other one and he definitely give them on credit due to competition.
There is a great dissatisfaction among customers (retailers) regarding scheme.
Gifts, incentives etc. of retailers do not get properly distributed even after complaint.
There is no system by which retailer can file their complaint to higher officials.
Grievance redressal system of the company is not reliable.
SGAs are being used to sale other companies products as well.
Market size can be increased if Jyoti traders’ distributorship get suspended,who also have work of Bisleri and PepsiCo.
SUGGESTIONS
Grievance redressal system needs a drastic improvement to make it more robust and efficient.
A system should be introduced by which retailer can file their complaint at higher level.
Promotional activities should be implemented properly not just to fulfill formality and compulsion made by the company.
Distributorship of such distributors should be canceled who also have distributorship of competitors, because with the help of verity of our products they go to the retailer’s outlet and try to sold competitor’s product, which leads to cut down in sale of our product.
Transparency should be maintain in scheme distribution this will lead to more reliability of customers over company, otherwise they always feel that they are getting cheated by the distributor.
It should be ensured that SGA is getting used for company’s own product, generally
employee take care of the same only if they come to know that higher level of officials are going out in the market.
Gifts, incentives should be properly get distributed, otherwise next time retailer will not show interest in company’s offers like mansoon dhamaka etc..
CONCLUSION
The expectations of the retailers are always high but to fulfill the upto a satisfactory level is vital for the growth of the company, since the are the pivot point of the placement of the product. Although there is no significant competitor but it does not mean that policy makers and front line employee can be relaxed, they should keep eyes over nominal changes taking place in the market that rabbit did the same mistake and rest is history. Don’t be ignorant even if you are leader of the market because you don’t know when any competitor bounce back with better placement and products. We are market leader and only with the hard work of our employees and comparatively better policies and their best possible implementation but to remain at same position we have to do same thing again and again in same way as we used to because“SUCCESS IS NOT A DESTINY, IT IS A JOURNEY”
LIMITATIONS OF THE STUDY
As only Ayodhya have been studied in survey so it does not represent the view of
the total Indian market.
Size of the research may not be substantial.
There was lack of interest of respondents.
The survey was carried through questionnaire and the questions were based on
perception.
There may be biasness in information given by retailers.
Customer dissatisfied with the services.
Mostly retailers were afraid that if they will give negative response for the
distributor then they may have to face negative consequence in the form of less schemes.
Misconception regarding research.
Lacks of motivation to give right response as they have a thinking that company is
not going to take any action on the report of this type of survey .
APPENDIX
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QUESTIONNAIRE