Viky.docx

PROJECT REPORT (Submitted for the Degree of B.Com Honours in Marketing under the University of Calcutta)

TITLE OF THE PROJECT Marketing Strategies of Coca Cola

SUBMITTED BY: Name of the Candidate : Chandra Sudip Narayan Sharma Registration No. : 043-1121-0725-16 Roll No. : 1043-61-0100 Name of the College : Heramba Chandra College

SUPERVISED BY Name of the Supervisor : Prof. Priyanka Banik

Session : 2018-19 Annexture : 1 SUPERVISOR’S CERTIFICATE This is to certify that Mr. Chandra Sudip Narayan Sharma, a student of B.Com Honours in Marketing of Heramba Chandra College under the University of Calcutta has worked under my supervision and guidance for his project work and prepared a Project Report titled “MARKETING STRATEGIES OF COCA COLA” The Project Report which he is submitting is the genuine and original work to the best of my knowledge.

Place:

Name: PRIYANKA BANIK

Date:

Designation: Name of the College : HERAMBA CHANDRA COLLEGE Signature :

2

Annexture II STUDENT’S DECLARATION I hereby declare that the Project Work titled “MARKETING STRATEGIES OF COCA COLA” submitted by me for the partial fulfillment of the degree of B.Com HONOURS IN Marketing under the University of Calcutta is my original work and has not been submitted before to any other University for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in the part has been incorporated in this report from any work earlier done by others or by me. However, extracts of any literature which has been used for the report has been duly acknowledged providing details of such literature in the references.

Place: Kolkata

Name : Chandra Sudip Narayan Sharma

Date:

Registration No.: 043-1121-0725-16 Roll No.: 1043-61-0100 Address: Nayapatti, Saltlake Sector-5, Kolkata Signature: 3

ACKNOWLEDGEMENT I, Chandra Sudip Narayan Sharma in my journey of making this project must thank University of Kolkata for inclusion of this Project Work for us at the Undergraduate level. This opportunity has provided us with a special skill, has added vision and foresight. I express my deepest gratitude to PROF. PRIYANKA BANIK, and the entire commerce department for their invaluable guidance and blessings throughout this period of three years of college. I would like to thank PROF. PRIYANKA BANIK for his unwavering support during the entire course of this Project Work. I am again deeply indebted to PROF. PRIYANKA BANIK who had moduled both technically and morally for achieving greater success in life. I am also gratefull to your principal, DR. NABANITA CHAKRABARTI for providing us with a favourable environment to complete our project with success. Last but not the least, I am extremely thankful to my parents, relatives and friends for their support and encouragement during my whole project tenure.

NAME OF THE CANDIDATE: CHANDRA SUDIP NARAYAN SHARMA REGISTRATION NO.: 043-1121-0725-16 ROLL NO. : 1043-61-0100 NAME OF THE SUPERVISOR : PROF. PRIYANKA BANIK 4

NAME OF THE COLLEGE: HERAMBA CHANDRA COLLEGE

Abstract: Marketing strategy in a nutshell maps an idea which forms the base of sustaining business keeping in mind the long-term benefits and competition in market. Marketing strategy is an idea which grows from the seed of value proposition enabling the company a step further over its competitors in terms of brand development and profit making. Its effects over the companies worldwide have been astonishing, specially over public-centric domains like automobiles, beverages etc. A soft drink giant, Coca Cola, is one such example which market aggressors since has been 1886. Coke as a brand in itself tries to substitute the entire soft drink markets. The main idea behind their marketing is they read people’s mind across geographical boundaries. They started tying up with various food chains that have widespread not only in India but a world as a whole. The report puts light on the financial growth of the company due to these strategies. How the company is able to maintain the edge over its peers. The unique feature of their strategy is they tend to change their tag lines; this ensures that the target audience is interested in the product and they feel that the company is doing some innovation. The report also tries to forecast some of the future strategies that may be adopted by them and impact in their growth.

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CONTENTS

PAGE NO.

CHAPTER 1- INTRODUCTION

     

INTRODUCTION IN DETAIL OBJECTIVE PROFILE OF THE ORGANIZATION MARKETING STRATEGY OF COCA COLA LITERATURE REVIEW RESEARCH METHODOLOGY

: : : : : :

8-11 12 13-29 30-32 33-37 38

CONCEPTUAL FRAMEWORK IN DETAILS : PROFILE OF THE ORGANIZATION COMPETITOR

40 41-42

CHAPTER 2- CONCEPTUAL FRAMEWORK  

:

CHAPTER 3- ANALYSIS OF DATA

 

FINDING AND INTERPRETATION ANALYSIS OF DATA

: :

44 45-49

: : :

51-53 54-56 57

CHAPTER 4- CONCLUSION

  

CONCLUSION SUGGESTIONS BIBLIOGRAPHY

6

CHAPTER 1

INTRODUCTION

7

INTRODUCTION IN DETAILS: Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector.

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HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.

ORIGIN AND DEVELOPMENT OF THE INDUSTRY: Soft drink industry scenario the world over is almost the same with two major players i.e. Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the industry is Cadbury-Schweppes and some local player in individual countries. The major

9

components of the industry consist of the concentrate manufactures, bottles and the sales and distribution network of the companies the rule and responsibilities of each of them are different. The major activity taken up by the concentrate manufactures relates to the production of the basic product which is battled by the battling plants mostly independents and subsequently sold through the established distribution set ups of the respective companies. Incidentally a lion’s share of the total sales of the product of most of the companies is through fountain a sale which sums to be the most popular outlet in the western countries. Through in India fountain sales from a very insignificant part of the sales revenue. During the initial stag both soft drink majors used a network of independent bottlers to bottle and market their products. Independents bottling arose primarily because it was not possible to create an effective organization for operating a vertically integrated company with hundreds of geographically separated manufacturing unit and local delivery operations given the limited transportation and communication system of the time and the lack of sophisticated financial and management controls. Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental competitive advantage that allowed that to compete so effectively lies in their ability to operate through a very cumbersome distribution system. In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys introduced Thums up in the beginning of 1980s. By the end of 80’s Parley with Limca, gold spot and Thums up emerged as clear winner with around 60% market share.

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In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This proposal as rejected on the grounds that the import of concentrate could not be agrees and the use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this time in collaboration with Punjab agro Corporation (PIAC) and Volta’s India Limited and succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of ‘Lehar Pepsi’. The most strategic step taken by Coca Cola was the purchase of Parley brands. With this coke instantly had the ownership of countries tap soft drinks brands as well as got access to Parleys extensive 54 plants bottling as well as a pre set distribution net work. This purchase gave coke an over might lead occur rival Pepsi which had came almost 5 year earlier.

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Objectives    

To study the marketing strategies adopted by coca cola Various strategies adopted by the company To study the local and regional marketing strategies To find out the data analysis

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PROFILE OF THE ORGANIZATION The Mission Statement of the Coca Cola Company

Our mission statement is to maximize shareowner value over time. In order to achieve this mission, we must create value for all the constraints we serve, including our consumers, our customers, our bottlers, and our communities. The Coca Cola Company creates value by executing comprehensive business strategy guided by six key beliefs:

1. Consumer demand drives everything we do. 2. Brand Coca Cola is the core of our business 3. We will serve consumers a broad selection of the nonalcoholic ready-to–drink beverages they want to drink through out the day. 4. We will be the best marketers in the world. 5. We will think and act locally. 6. We will lead as a model corporate citizen.

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The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready to drink beverages sales, maximize our longterm cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our company’s product. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time.

GROWTH AND DEVELOPMENT OF THE ORGANIZATION The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey and more. In 1978, The Coca-Cola Company was selected as the only Company allowed selling packaged cold drinks in the People's Republic of China.

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The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called "intelligent risk taking." One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola, the first change in formulation in 99 years. In taste tests, people loved the new formula, commonly called “new Coke.” In the real world, they had a deep emotional attachment to the original, and they begged and pleaded to get it back. Critics called it the biggest marketing blunder ever. But the Company listened, and the original formula was returned to the market as Coca-Cola classic®, and the product began to increase its lead over the competition -- a lead that continues to this day. The 1990s were a time of continued growth for The Coca-Cola Company. The Company's long association with sports was strengthened during this decade, with ongoing support of the Olympic Games, FIFA World Cup™ football (soccer), Rugby World Cup and the National Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing, connecting the brand with one of the world's fastest growing and most popular spectator sports. New beverages joined the Company's line-up, including Powerade® sports drink, Qoo® children's fruit drink and Dasani® bottled water. The Company's family of brands further expanded through acquisitions, including Limca®, Maaza® and Thums Up® in India, Barq's® root beer in the U.S., Inca Kola® in Peru, and Cadbury Schweppes'® beverage brands in more than 120 countries around the world. By 1997, the Company already sold 1 15

billion servings of its products every day, yet knew that opportunity for growth was still around every corner. In 1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy. Now well into its second century, the Company's goal is to provide magic every time someone drinks one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the globe, you can still find Coca-Cola. From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to the world’s most ubiquitous brand, with more than 1.4 billion beverage servings sold each day. When people choose to reach for one of The Coca-Cola Company brands, the Company wants that choice to be exciting and satisfying, every single time.

FUNCTIONAL DEPARTMENTS OF ORGANIZATION There are 6 functional departments within Coca Cola. Marketing Finance Packaging Sales Research and development Administration

16

Marketing The

Coca

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17

be

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Also, decide how much to sell and how much to store in the warehouse and

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and the quickest way. RESEARCH & DEVELOPMENT This

department

their

responsibility

is

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Administration This

department

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keeping 18

the

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going.

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as

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Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say these because every one knows that and all the other cold drinks and water, coffee, tea are the competitors.

Weather Weather is the third major factor in effecting the Coke’s selling. This is underdeveloped market so the coke’s consumption in summers is 70% and in winters is 30%.

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MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. In other words, they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t actually differentiate between these two brands in order to their tastes. Consumers basically drink what they get. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: 

Push availability



Pull consumer’s demand.

For this reason Coca-Cola have provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of cost just to provide child coke to their customer, which they want to be purchase. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not, if not then they immediately change or repair it.

PRODUCTS OF COCA-COLA Coca-Cola serves in India some of the most recalled brands across the world, Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with 20

The Schweppes product range. The acquisition of Thums Up brought some of the leading national soft drinks like Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to This, Kinley mineral water was launched in the year 2000. The Company ranking up "firsts" in the introduction of Canned and PET soft drinks, vending machines and backpack dispensers for crowds of cricket supporters.

COCA COLA BEVERAGES

BRANDS: 





·

Maaza



·

Sprite



·

Fanta



·

Coca cola



·

Kinley



·

Sun fill

Thums up

·

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COCA COLA SLOGAN: “THANDA MATLAB COCA- COLA” “JO CHAHE HO JAYE COCA-COLA ENJOY” “SAR UTHA KE PIYO” The world`s famous drink, the world 1s most valuable brand. he most recognizable word across the world after OK .Coca Cola has truly remarkable heritage. Developed in a brass pot in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to mention the best selling soft drink in the world.

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In India .Coca Cola was the leading soft-drink till 1977 when government policies necessitated its departure.Coca Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in the remote and inaccessible parts of the nation.

THUMS-UP SLOGAN: “I WANT MY THUNDER"

"THUMPS UP TASTE THE THUNDER"

Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine

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attitude. This brand clearly seeks to separate the men from the boys.Coca Cola has also launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.

MAAZA SLOGAN: "Taaza Mango, Maaza Mango" "Botal mein Aam, Maaza hain Naam".

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India.

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Maaza currently dominates the fruit drink category. It is available in SKUs of 200ml RGB, 250ml RGB, 125ml Tetrapak and 200ml Tetrapak

SPRITE SLOGAN: "SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS" "DHIKAWE PE MAT JAO APNI AKHAL LAGAO”

In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a strong appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp refreshing taste encourages the today's youth to trust their instincts, influences them to be

25

true to who they are and to obey their thirst. Sprite is available around the country in 200ml, 300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste encourages the today’s youth to trust their instincts, influences them to be true to who they are and to obey their thirst.

FANTA SLOGAN: “KUCH BH1 HO SAKTA HAI” “MASTI KA APNA TASTE”

Internationally,

Fanta

- The

'orange'

drink of

The

Coca-Cola

Company

is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year 26

1993. Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends. Over the years Fanta has occupied a strong market place and is identified as “The Fun Catalyst”.

Fanta advertising over a time has the biggest association with fun and friends that have reflected through past TV commercials like “Masti ka Apna Taste,Bajao Masti”.

LIMCA SLOGAN: -

“JUST TAKE IT EASY”

Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3 decades. The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.

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The success formula The sharp fizz and lemoni bite combined with the single-minded positioning of the brand as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes, refreshes and transforms.

The brand has been displaying healthy volume growths year on year and Limca continues to be the leading flavour soft drink in the country.

SUNFILL

Sunfill powder drink has been developed locally based on the Indian consumer preferences. We have kept in mind the Indian palate ( Taste / Sweetness /Sourness /Orange flavour ) .Sunfill is also present in other countries, either in the form of a fruit n juice based drink, or in the powdered concentrate form in countries like Indonesia, Sri lanka and Bangladesh. It has been developed using the Coca Cola Company`s expertise in the beverage business.

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Keeping in mind the affordability factor and the competition, Sunfill is available in three variants-Sunfill Regular, Sunfill Anand and Sunfill Tarang.

KINLEY

SLOGAN: -

“Boond Boond Mein Vishvaas”.

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Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of life, a celebration of life itself. Kinley water understands the importance and value of this life giving force. Kinley water thus promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis along with the latest technology to ensure the purity.

MARKETING

STRATEGIES OF COCA COLA

Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing

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Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it.

PRICE STRATEGY Trade Promotion Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And that’s why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. They do agreements with a shop keepers and stores to exclusive sale in that store. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.

Different Price In Different Seasons 31

Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in India. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.

PROMOTION STRATEGIES Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion Company also do sponsorships with different college and school’s cafes and sponsors their sports events and other extra curriculum activities for getting market share.

UTC Scheme

32

UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among children.

DISTRIBUTION CHANNELS STRATEGY Coca Cola Company makes two types of selling  Direct selling  Indirect selling

Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost 450 vehicles to supply their bottles. In this type of selling company have more profit margin.

Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products.

LITERATURE REVIEW 33

1. Dhuna (1984) in his article “An Analysis of Consumer Behaviour - A Case

Study

of Soft Drinks” done in Rohtak during 1983-84 aimed at determining the prevalent attitudes of consumers towards soft drinks. Taking a sample of 150 consumer,

he

showed

how factors like age, profession, sere and income affect attitudes in the purchase

of

the

products his finding were as follows: Campa Cola a pure soft drinks product,

was

found

to be highly popular among the consumers. The second position was held by Thumps up, REF: Mukesh Dhunna, “An Analysis of Consumer Behaviour: A Case study of Soft Drinks”, Indian Journal of Marketing, Vol.XIV, 1984, pp.26-28.

2. Kurtz and Boone (1984)2 in their research work entitled “consumer behaviour interpersonal and social influences in rural area” concluded that one’s family

is

also

an

inter-personal determinant of consumer behaviour. The influence of household

members

is often significant in the purchase decision process. Because of the close, continuing interactions among family members, the family often represents the strongest

source

of

group influence on the individual”. REF: Kurtz and Boone, “Marketing Management as consumer behaviour interpersonal and social influence in rural area”, 1984, P.158.

34

3. Lawrance (1984) in his study on “Effective publicity how to reach the public people” concluded that as Coco-cola occupied that the major soft drinks market

position

in rural area. Consumer mind would obviously tilt towards Coco-cola so by correct product positioning in the market 7-up could differentiate it from other Coco-cola

brands

and could sell more. 7-up did so positioning itself as an alternatives to Coca-cola.

They

suggested that most of the rural area people would buy coco-cola may be disappointed and it offered Pepsi consumers have strong brand preference for fast moving

products

power of relations. REF: Lawrance, “Effective Publicity How to Reach the Public People”, P.42 (1984).

4. William, O., (1985) in his study on “The Economic Institution of Capitalism

in

New York: Territorial Exclusively in the Soft Drinks Industry” concluded that

the

vertically integrated firm will not have the necessary incentives 10 minimize

costs.

If

specific assets exist, then the costs of using the external marked rise and vertical

35

integration becomes more likely. If we also allow for the market’s ability to fully,

exploit

economics of scale by agg regaling demands, then a higher degree of asset

specificity

is

necessary before vertical integration occurs, as the market has a considerable

advantage

in achieving tower costs. REF: William, O., “The Economic Institution of Capitalism New York: Territorial Exclusively in the Soft Drinks Industry”, Free Press 1985.

5. Jorin (1987) examined changes in spending power and buying habits of

Swiss

consumers since the beginning of the 20th century and in the more recent past.

Current

trends include greater emphasis on health and safety of foodstuffs and less

attention

to

price, increased demand for low calorie light products and increased demand

for

organically grown foods. For young people, more concern with enjoyment and less for health, with more meals eaten away from home, and generally

an

increased

demand

for

convenience foods. The prospects for high quality branded products are seen

to

be 36

good.

REF: Jorin, R., “Consumer behavior is changing and offering new opportunities”, Berater Information. Vol.26, No.9, 1987, pp. 8-14

6. Russell W. Belk (1988) discussed in his article that possessions are a major contributor to and reflection of one’s identities. A variety of evidence is presented supporting this simple and compelling premise. Related streams of research

are

identified

and drawn upon in developing this concept and implications are derived for

consumer

behavior. Because the construct of extended self involves consumer behavior

rather

than

buyer behavior, it appears to be a much richer construct than previous formulations positing a relationship between self-concept and consumer brand choice. REF: Russell W. Belk, “Possessions and the Extended Self”, Journal of Consumer Research, Vol. 15,No. 2, 1988, pp. 139-168.

7. Singh (1989) in his book “Marketing and consumer behaviour” stated that consumer behaviour had always a scope for research studies, because the

37

attitudes

and

perceptions of consumer were changing with the passage of time. Such type

of

consumer

research would enable the manufacturers, distributors and dealers to formulate

effective

sales and advertising strategies. The marketing plans must be based on identifying anticipating

and the

consumer

needs

and

their

aspirations.

changing

desire

and The

manufacturers endeavours should attract the public by offering what they liked

the

most,

but also should have their patronage by meeting their satisfaction on a continuous

basis.

REF: Raghbir Singh, Marketing and Consumer Behaviour, Deep & Deep Publication, New Delhi, 1989. 8. Sugy (1989) in his research work that a tendency to respond to a given

product

in

a particular way. An awareness about attitudes help the marketing managers

because

many consumer behaviours are related to attitudes. Attitudes have three components, the cognitive, the affective and the behavioural, buying decision

process

in 38

universal.

However, certain differences are found between rural and urban consumers

owing

to

the

limited information sources an limited evaluation capabilities. Rural buyers

are

not

brand

loyals as they are supposed to the improved exposure increased learning an

socialization

and availability of product they are now becoming comparable to their urban counterparts. Innovation adoption analysis shows the politically powerful and

the

educated are among the adopters of innovation. REF: Sugy, M.G., Quoted in Kotler, P., Marketing Management, Prentice Hall of India, New Delhi, 1989, P.185.

9. Mishra (2010) in his study on “Rural Marketing India towards Soft Drinks Opportunity and Challenges”, concluded that the rural markets have opened

new

front

for

the modem marketers. The income of ruin] population in India aiid their purchasing power has also increased in recent years. Soft drinks companies have to ascertain

their

needs and exploit the vast potential of rural markets with appropriate 39

marketing strategies. The Indian rural market can be considered soft drinks which need

to

be

explored. However, broadly scattered and heterogeneous rural markets, inadequate insufficient

and rural

transportation,

inefficient

communication

warehousing

and

facilities,

overall backwardness, preference for conventional way of life of the rural people,

etc.,

are some such factors which must to tackled as these have been hindering

the

growth

of

rural markets. Soft drinks companies have to meet the challenges of availability affordability, acceptability, and awareness in rural India. REF:Arvindkumar Mishra, “Rural Marketing in India towards Soft Drinks Opportunities

and

Challenges”, Advertising Express, April 2010, P.29

10. Tefft (2010) in his study on “Can soft drink taxes reduce population weight?” concluded that estimate the effect of current soft drinks taxes on weight out-comes

for

the

U.S. population. As the “Obesity epidemic has garned considerable 40

attention

in

the

united

states. The US use, year and quarter of year fixed effects, along with state specific

time

trends in our baseline specification and find that a (1%) point increase in soft

drink

taxes

decreases adult BMI by 0.003. Therefore, he should expect only modest changes

in.

population weight through soft drink consumption responses to small tax increases.

He

also performed falsification tests on variable that should not be affected directly

by

soft

drink taxes. REF: Nathan Taff, “Can Soft Drink Taxes Reduce Population Weight?”, Contemporary Economic Policy No.1. 28, January 2010, pp.23-35

41

RESEARCH METHODOLOGY The project will involve a study of Advertisements and sales promotions schemes of the soft drinks industry. The study will include following parameters.  Top of the mind recall.  Brand awareness about an advertisement.  The use of celebrity in a particular campaign and their impact.

The mode of the data collection would include both primary and secondary. The impact of sale promotion schemes would measure on:  Their visibility.  Recall value of a post schemes.  Acceptability of the current scheme by the customers and sales force.

For this purpose both primary and secondary data would be collected. For clarification certain annexure of ads and sales promotion schemes are added in the end. The project work started with the collection of secondary data from various sources such as newspaper, magazines, journals and web sites. Along side two questionnaires were also prepared one aimed at consumers and the other aimed at retailers together primary data, 42

regarding the influence and effect of Advertising and sales promotion schemes on the sales of soft drinks (Carbonated Soft drinks).

CHAPTER 2

CONCEPTUAL FRAMEWORK

43

CONCEPTUAL FRAMEWORK IN DETAILS HISTORY OF THE ORGANIZATION:Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-Cola is manufactured by “The Coca-Cola Company” and is often referred to as Coke. Coke is one of the most recognizable brands in the world. Coca-Cola was invented by John Stith Pemberton in Covington, Georgia in May 1886. The beverage was initially a coca wine and was called Pemberton’s French Wine Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves from South America were added as a stimulant to the beverage along .with kola nuts which were added to give flavor to the drink. Due to them the name Coca-Cola was given to the beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for Coca-Cola in 1887 from John Pemberton for $2,300. Asa Candler marketed Coke aggressively and was responsible of the dominance of the world soft drink market by Coke. During Pemberton’s time five ounces of coca leaf were added per gallon of the syrup which constituted a significant dose. Candler claimed in 1891 that he had altered the formula of Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-Cola also contained nine milligrams of cocaine per glass till 1904, when they started using “spent” leaves instead of fresh leaves.

44

PROFILE OF ORGANIZATION COMPETITORS PepsiCo, Inc. is one of the world's top consumer product companies with many of the world's most important and valuable trademarks. Its Pepsi-Cola Company division is the second largest soft drink business in the world, with a 21 percent share of the carbonated soft drink market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola, Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market. The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40 percent market share and an even more staggering 56 percent share of the U.S. market. In the United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos, Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net sales and more than two-thirds of the parent company's operating profits. The company's third division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41 percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product portfolio includes 16 brands that generate more than $500 million in sales each year, ten of which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160 countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began, PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker 45

Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch, Life, and other ready-to-eat cereals. When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic response convinced him that he had created a commercially viable product. For 20 years, 'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a dilemma; the crucial decision he made turned out to be the wrong one and he was forced to sell. But his successors fared no better and it was not until the end of the 1930s that PepsiCola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level was almost entirely the result of its management style and the phenomenal success of its television advertising. Doc Bradham, like countless other entrepreneurs across the United States, was trying to create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina, Bradham gave the name Pepsi-Cola to his most popular flavored soda. Formerly known as Brad's Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Cola's method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then shipped it in barrels to the contracted fountain operators who added the soda water. He also bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark, ran his first advertisement in a local paper, and moved the bottling and syrup-making

46

operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were produced in 1904.

CHAPTER 3

ANALYSIS OF DATA

47

FINDINGS AND INTERPRETATIONS:A thorough study of various data has been done. Through these we can see that how the Coca-Cola Company has grown over years. We can also interpret that Coca-Cola may have challenges, but the remarkable point is their comeback to the market with dominance. 3 types of statistical analysis with respect to Coca-Cola and comparison of Coca-Cola with other soft drinks companies (especially PEPSI.CO.) are been shown in this section. They are:

i) ii)

Market Share of Coca-Cola for the year 2017 and 2018. Coca-Cola Growth Rate in terms of Sales Turnover in the Financial Year

iii)

2013-14, 2014-15, 2015-16, 2016-17, 2017-18. Coca-Cola Growth Rate in terms of Profit Earned in the Financial Year 2013-

iv)

14, 2014-15, 2015-16, 2016-17, 2017-18. Comparison between Coca-Cola and PEPSI.CO. on the basis of Sales Turnover in the Financial Year 2013-14, 2014-15, 2015-16, 2016-17, 2017-18. 48

The Competitors of Coca-Cola in the Market are:   

Parle Bisleri PEPSI.CO. Others

ANALYSIS OF DATA:Analysis of data is a process of inspecting, cleansing transforming and modeling data with the goal of discovering useful information, suggesting conclusions, and supporting decision-making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a veriety of names, in different business, science and social science domains. Data collected can be of 2 types: 1. Primary Data. 2. Secondary Data. 1. Primary Data: Primary data is the original research that is obtained through first-hand investigation. They include information collected from interviews, experiments, surveys, questionnaires, focus groups and measurements. 2. Secondary Data: Secondary Data is the research that is widely available and obtained from another party Secondary can be found in publications, journals and newspapers.

49

The secondary data collected by me while doing the projet are:   

Internet. Market Research Books. Company brochure and leaflets.

1. MARKET SHARE OF COCA COLA:-

Market shares of Coca-Cola 2017

COCA-COLA PEPSI.CO PARLE BISLERI OTHERS

50

Market shares of Coca-Cola 2018

COCA-COLA PEPSI.CO PARLE BISLERI OTHERS

2. SALES TURNOVER OF COCA-COLA :FINANCIAL YEAR

AMT. OF TURNOVER(IN BILLIONS)

2013-2014

46.8

2014-2015

46

2015-2016

44.2

2016-2017

41.8

2017-2018

35.4

THE GRAFICAL REPRESENTATION OF THE ABOVE TABLE IS GIVEN BELOW:-

51

SALES TURNOVER OF COCA-COLA IN BILLIONS 50 45 40 35 30

SALES TURNOVER OF COCA-COLA

25 20 15 10 5 0 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

3. PROFIT EARNED BY COCA COLA :FINANCIAL YEAR

AMT. OF PROFIT

2013-2014

7

2014-2015

7.3

2015-2016

6.5

2016-2017

1.2

2017-2018

6.4

52

THE GRAFICAL REPRESENTATION OF THE ABOVE TABLE IS GIVEN BELOW:-

AMT. OF PROFIT EARNED IN BILLIONS 8 7 6 5

AMT. OF PROFIT EARNED

4 3 2 1 0 2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

4. COMPARISION BETWEEN COCA-COLA AND PEPSI.CO ON THE BASIS OF TURNOVER FINALCIAL YEAR

COCA-COLA(IN BILLIONS)

PEPSICO(IN BILLIONS)

2013-2014

46.8

66.6

2014-2015

46

63

2015-2016

44.2

62.7

2016-2017

41.8

63.5

2017-2018

35.4

64.6

53

THE GRAFICAL REPRESENTATION OF THE ABOVE TABLE IS GIVEN BELOW:COMPARISION BETWEEN COCA-COLA AND PEPSI.CO ON THE BASIS OF TURNOVER (IN BILLIONS):70 60 50 40 COCA-COLA PEPSICO

30 20 10 0 2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

CHAPTER 4

54

CONCLUSION

CONCLUSION So, I’ve reached the conclusion f the project, First of all, I’m very much thankful to my teachers, college- Heramba Chandra College and Calcutta University who gave me the chance to work on his project and prepare a project report on “MARKETING STRATEGIES OF COCACOLA”. It was quite an interesting topic to work on and go in to details. I got to know my subject matter well with the help of some examples. The project helped me to know about the basic strategies of a company behind taking decisions on various aspects. CocaCola is still going good even after 133 years of service in both Indian and international markets. Their strategies are very much connected to the consumers and they suit their 55

mental structure. The range of products is highly diversified serving the rich to the poor, 8 to 80 (in terms of age), professional, social or personal status of consumers.

SWOT ANALYSIS The overall evaluation of a company’s Strength, Weakness, Opportunities and Threats is called SWOT Analysis. The SWOT Analysis is further divided into two parts :

Internal environment analysis



External environment analysis

Internal environment analysis (analysis of strength and weakness) It is one thing to discern attractive opportunities and another to be able to take advantage of these opportunities. Each business unit needs to evaluate its internal strength and weakness. As the research is conducted following strength and weakness of the Coke Company is found.

Strength 1. Good company image. 2. Well trained and experience workers and executives are available. 3. Strong distribution network. 4. Brand 'Thums-Up' alone cover the big market. Adopted two types of distribution channels (Direct route and indirect route). 56

5. Effective sales promotion schemes and commission to salesman on achieving target. 6. Effective executive team.

Weaknesses 1. Less personal contacts with retailers. 2. Service is not good. 3. Company officials do not visits outlets regularly. 4. Fewer advertisements Channels. 5. Bad and delay in claim settlement. 6. No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc. 7. Less availability of dealer board, glow signboard, painting etc.

Opportunity

1. High growth rate for fruit drink market. 2. Rural area has a great population of youths in U.P. 3. Rural area has good market share of PepsiCo in India.

57

4. Therefore there is a need only of marinating this share in future. 5. Targeting the upper middle class for home take segment.

Threats

1. High growth of competitor's products. 2. Better facilities provided by the competitor to their distribution this might lead to switch over to slice distribution towards competitors. 3. Indifference among distributor and fat dealers. 4. Different effective promotion schemes of competitors.

SUGGESTIONS Although it is very early to suggest any thing to such a internationally renounced company like Coca-Cola having in the mature stat e of marketing yet for the local market, client distributors & retailers, based on the interactions & feed backs from various outlets, segments of customers I would like to suggest as under:

58

 Company should promote good and heart felt Slogans and Jingles.

 Company should provide others small advertising items in the form of garlands, hangers recto the shopkeepers as there are cheap and Q good source of advertising.

 Company should sponsor important event like World cup, Asian & other tournament, any event related to film awards and programmers of local importance.



Company, If possible should give schemes to the customers through newspapers having provision for discounts in purchasing its products.

 Company should organizing campaigns & distributes caps, Key rings, glasses, serving tray, pussels on which company packages are branded.

 Chilling equipments should provide on a cost basis.

 Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be provided to the outlets

 If there is any default found in the chilling equipment provided by the company should be repaired quickly when so required.

 Company should ensure good supply of stock.

59

 Company should go for more monopoly counters.

 Company should give discount with every crate as is being done by Pepsi.

 There should be surprise check by the company to endure whether benefits of schemes provided by the company reach outlets or not and take corrective measures in case of default.

 Company should arrange seminars and meetings with dealers on an ongoing basis on monthly interval.

 Shopkeeper feedback should be taken in regular manner.

 A special shopkeeper’s care cell should be formed to listen the shopkeeper’s grievance on the lines of customer care cell.

 No. of hoardings should be increased.

 Flexibility in the allot of monopoly items should be encouraged.

 . Some free gifts should also be given on established Brands to stimulance the retailer.

60



Company should elaborate public announcement on important days like Health day, Anti drug day world aids day etc.

 Company should tap colleges and school canteens. They should be given extra discounts as these outlets give potential long run customers to the company.

 Company should provide Tables, Chairs wall clocks, stands, openers to the retailers as f or them type of free gifts are significant and they promote those company's products who provide such items to them

BIBLIOGRAPHY REFERENCES

BOOKS:Kottler Philip

:

Marketing Management 61

Chunawall S.A.

:

Essentials of Marketing Research

Kothari C.R.

:

Research Methodology

Sherlerkar S.A.

:

Marketing Management

Schiff man Leon. G.

:

Leslie Lazar Kaunk

Magazines  Business world  Coca-cola company booklet  Pepsi company Booklet

Websites    

www.coca-cola.com www.pepsi.com www.pepsico.com www.google.com

Newspaper  Times of India  Economic Times

62