customer preference for Coca-Cola

A RESEARCH PROJECT REPORT

ON
study of customer preference for Coca-Cola
Submitted in partial fulfillment for the award of
the degree of
Bachelor Of Business Administration
(B.B.A.)
Batch: 2016-19

Under the guidance of SUBMITTED BY

Mr. Shariq Nadeem Rishabh Puri
(Assistant Professor) B.B.A.- 3rd Year
Roll No. 1601029094

Department of Commerce & Business Management

Faculty of Commerce & Management

INTEGRAL UNIVERSITY
LUCKNOW

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ACKNOWLEDGEMENT

It is really a matter of pleasure for me to get an opportunity to thank all

the persons who contributed directly or indirectly for the successful

completion of the project report.

First of all I am extremely thankful to my college Integral University for

providing me with this opportunity and for all its cooperation and

contribution. I also express my gratitude to my Project mentor and also to

my guide under whom I completed my Research schedule Mr. Shariq

Nadeem(Assistant Professor).I am highly thankful to my respected

project guide for suggesting this topic and I learned alot under his

valuable guidance and assistance.

I am also grateful to all my faculty members for their valuable guidance

and suggestions for my entire study.

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Faculty of Commerce & Management

Integral University
Dasauli, Kursi Road, Lucknow

CERTIFICATE
This is to certify that “” , a student of BBA3rd Year has completed the
research project report on “customer preference for Coca-Cola”
under my guidance and supervision.
The dissertation work of the student is found to be satisfactory for
submission for the award of degree of Bachelor of Business
Administration. I wish him all the best for his future endeavors.

Guide Name: Mr. Shariq Nadeem

Designation: (Assistant Professor)

Faculty of Commerce and Management

Integral University, Lucknow.

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CONTENTS
EXECUTIVE SUMMARY - PAGE 2

CHAPTER 1 INTRODUCTION - PAGE 4-6

CHAPTER 2 INDUSTRY PROFILE - PAGE 7-11

CHAPTER 3 COMPANY PROFILE - PAGE 12-63

 COCA-COLA COMPANY - PAGE 13-17

 GLOBAL MARKET SHARE OF COCA-COLA - PAGE 17-18
 TRENDS AND FORCES - PAGE 19-22
 POTER’S FIVE FORCES - PAGE 22-29
 PESTLE ANALYSIS - PAGE 29-33
 SWOT ANALYSIS - PAGE 33-40
 COCA-COLA INDIA - PAGE 41-42
 PRODUCTS IN INDIA - PAGE 42-46
 MARKETING MIX - PAGE 49-58
 PESTLE ANALYSIS - PAGE 58-62
 SWOT ANALYSIS - PAGE 60-62

CHAPTER 4 RESEARCH METHODOLOGY - PAGE 63-68

CHAPTER 5 DATA ANALYSIS - PAGE 69-79

CHAPTER 6 SUGGESTIONS AND CONCLUSION - PAGE 80-82

BIBLIOGRAPHY - PAGE 83

ANNEXURE - PAGE 84-85

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EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the
history and current scenario of the Coca-Cola Company globally and locally.
The first part of the study takes us through the present state of affairs of the
beverage industry and Coca-Cola Company globally.

The report contains a brief introduction of Coca Cola Company and Coca-Cola
India and a detailed view of the tasks, which have been undertaken to analyze
the market of Coca-Cola i.e. we have performed Competitive, PESTLE and
SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of
Coca-Cola India in order to identify areas of potential growth for Coca-Cola.
We have also given a brief description of Trends and Forces that are affecting
Coca-Cola Company globally.

The main objective of this project report is to analyze and study in efficient way
the current position of Coca- Cola Company. The study also aims to perform
Market Analysis of Coca-Cola Company & find out different factors effecting
the growth of Coca-Cola. Another objective of the study was to perform
Competitive analysis between Coca-Cola and its competitors. Apart from these
objectives this study is also conducted to understand the Customer preferences
towards various Coca-Cola products.

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INTRODUCTION
Let reason go before every enterprise, And counsel before every action
Research is a human activity based on intellectual investigation and is aimed at
discovering, interpreting, and revising human knowledge on different aspects of
the world.

MARKETING RESEARCH:-

Marketing research is the function that links the consumer, customer and public
to the marketer through information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the methods for collecting information, manages and implements
the data collection process, analyzes and communicates the findings and their
implications.

-American Marketing Association

Marketing research is about researching the whole company’s marketing

process.

-Palmer (2000)

INTRODUCTION TO COCA-COLA
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Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly
400 beverage brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage
products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-
ready-to-drink powder products. In addition to this, it also produces and markets sports
drinks, tea and coffee. The Coca- Cola Company began building its global network in the
1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-
Cola system has successfully applied a simple formula on a global scale: “Provide a moment
of refreshment for a small amount of money- a billion times a day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the
Company. This unique worldwide system has made The Coca-Cola Company the world’s
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, has brought pleasure to thirsty consumers around the
globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for
hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers through a
worldwide system of superior brands and services, thus increasing brand equity on a global
basis. They aim at managing their business well with people who are strongly committed to
the Company values and culture and providing an appropriately controlled environment, to
meet business goals and objectives. The associates of this Company jointly take
responsibility to ensure compliance with the framework of policies and protect the
Company’s assets and resources whilst limiting business risks.

INDUSTRY PROFILE
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A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

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
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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.

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 cr. 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 cr. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs. (Source: HCCBPL, Monthly Circular)

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

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In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.

BEVERAGES

NON-
ALCOHOLIC
ALCOHOLIC

NON-
CARBONATED
CARBONATED

COLA NON-COLA NON-COLA

Fig 2.0 BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:

 Alcoholic, non-alcoholic and sports beverages.

 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
 Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
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important to address this issue so as to encourage regular consumption as well as and to
make the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

 The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage consumption
whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or
prestige relevant to the category.
 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
 The beverage market has still to achieve greater penetration and also a wider spread
of distribution. It is important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up to the overall growth of the
food and beverage industry in the economy.

COMPANY PROFILE

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MISSION:

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and
serves as the standard against which we weigh our actions and decisions.

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

VISION:
Our vision serves as the framework for our Roadmap and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality growth.
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy
people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we create mutual,
enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.

 Profit: Maximize long-term return to shareowners while being mindful of our overall

responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.

WINNING CULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make our
2020 Vision a reality.

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LIVE OUR VALUES :
Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.
FOCUS ON THE MARKET:
 Focus on needs of our consumers, customers and franchise partners.
 Get out into the market and listen, observe and learn.
 Possess a world view.
 Focus on execution in the marketplace every day.
 Be insatiably curious.
WORK SMART:
 Act with urgency.
 Remain responsive to change.
 Have the courage to change course when needed.
 Remain constructively discontent.
 Work efficiently.

ACT LIKE OWNERS:

 Be accountable for our actions and inactions.
 Steward system assets and focus on building value.
 Reward our people for taking risks and finding better ways to solve problems.
 Learn from our outcomes -- what worked and what didn’t.
BE THE BRAND:
Inspire creativity, passion, optimism and fun.

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HISTORY OF COCA-COLA

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a
drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's
French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European
cocawine.

In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by
developing Coca-Cola, essentially a non-alcoholic 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.[9] Pemberton claimed Coca-Cola cured many
diseases, including morphine addiction, dyspepsia, neurasthenia, headache, 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.
Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca
Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine,
Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey,
C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton
began selling his own version of the product.

John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his
beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to
establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the
business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier
and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of
sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most
likely a forgery as well.

In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation),

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and in 1910 Candler had the earliest records of the company burned, further obscuring its legal
origins. By the time of its 50th anniversary, the drink had reached the status of a national icon in the
USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor
changes in the sourcing of some ingredients.

Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first
appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles
were Biedenharn bottles, very different from the much later hobble-skirt design that is now so
familiar. Asa Candler was tentative about bottling the drink, but two entrepreneurs from Chattanooga,
Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea 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. The loosely termed contract proved to be problematic for the 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. Coke concentrate, or Coke syrup, was and is sold
separately at pharmacies in small quantities, as an over-the-counter remedy for nausea or mildly upset
stomach.

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 that most consumers preferred the taste of New
Coke to both Coke and Pepsi, 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, under the name Coca-Cola Classic on July 10, 1985.

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they
planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose, the same
sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, Coca-
Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium. In 2007, Coca-
Cola began to sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and
zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it was revealed that Coca-Cola would resume

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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 "Coca-Cola." The
word "Classic" was truncated 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-ounce bottles
sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate
the product's image. In November 2009, due to a dispute over wholesale prices of Coca-Cola
products, Costco stopped restocking its shelves with Coke and Diet Coke.

GLOBAL MARKET SHARE OF COCA-COLA

In 2009, the company generated revenues of $31 billion with $6.8 billion net income. An increased
consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated
soft drinks (abbreviated as CSD), which constitutes 78% of KO’s sales. KO’s profits are also
vulnerable to the volatile costs for the raw materials used to make drinks - such as the corn syrup
used as a sweetener, the aluminium used in cans, and the plastic used in bottles. Furthermore, slowing
consumer spending in Coke's large North American market compounds the challenge of increasing
costs and a weak economic environment. Finally, Coca-Cola earns approximately 75% of revenue
from international sales, exposing it to currency fluctuations, which are particularly adverse with a
stronger U.S. Dollar (USD).

Despite these challenges, Coca-Cola has remained profitable. Though the non-CSD market is
growing quickly, the traditional CSD market is still large in terms of both revenues and volume and
highly lucrative. The size and variety of KO’s offerings in the CSD category, coupled with the
unparalleled brand equity of the Coca-Cola trademark, has allowed KO to maintain its share of this
important market. KO has also responded to consumers’ changing tastes with new, non-CSD product
launches and acquisitions such as that of Glaceau in 2007. Strong international growth has also more
than offset a weak domestic market.

On February 25, Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE) for
$12.3 million.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago, the soft drink market
has changed dramatically with consumers buying fewer soft drinks and more non-carbonated
beverages, such as Powerade and Dasani water. Under the new deal, Coca-Cola Company will take
control of the bottler's North America operations, giving the company control over 90% of the total
North America volume. In return, Coca-Cola Enterprises will take over Coke's bottling operations in

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Norway and Sweden, becoming a European-focused producer and distributor.

In March 2010, Coca-Cola Company entered into discussions to buy the Russian juice company,
OAO Nidan Juices. The company is 75% owned by a private equity firm in London and 25% by its
Russian founders and controls 14.5% of the Russian juice market. If successful, the purchase would
add to Coca-Cola's 20.5% market share, passing Pepsi's 30% market share. The Russian juice market
is estimated to be $3.2 billion dollars, and estimates of Nidan's purchase price are between $560-$620
million.

In April 2010, Coca-Cola Company purchased a majority share of Innocent, the British fruit smoothie
maker. Last year the company bought an 18% share of the company for more than $45 million, and
recent purchases of additional shares increased Coke's stake to 58%.

In June 2010, Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715 million for
the continued right to sell their products following the company's acquisition of Coca-Cola
Enterprises (CCE). The deal covers the next 20 years with an option to renew for an additional 20
years. ]

TRENDS AND FORCES

 The Global Economic Recession Threatens Overall Demand:

In 2008 and 2009, the global economy has fallen into a recession. Not just the United States but
countries from all over the world have felt the impacts of the 2008 Financial Crisis. This may be a
problem for Coke, which derives approximately 75% of its sales from outside North America. Still,
the company has positioned itself well in international markets both organically and through
acquisitions, such as that of Chinese juice maker Huiyuan for $2.4 billion. However the company was
unsuccessful with its purchase of Huiyuan as it broke antitrust laws in China. On March 5, 2010,
Coke's CEO said that emerging markets are bouncing back quicker than more developed markets.

 New Aversion to Soda Threatens Main Business:

74% of the Coca Cola Company's products are classified as carbonated soft drinks, making it
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particularly sensitive to changes in demand for CSD. Consumer demand for CSD has been negatively
affected by concerns about health and wellness. This is true across most of KO's markets. There has
been an increase in the number of regulations regarding CSD in the United States in response to the
heightened desire for healthy food consumption.

In 2006, many state public school systems banned the sale of soft drinks on their campuses. The
Centre for Science and Public Interest proposed that a warning label be placed on all beverages
containing more than 13g of sugar per 12-oz serving. This proposal would affect all non-diet, full
calorie drinks produced by KO. These factors have driven a shift in consumption away from CSD to
healthier alternatives, such as tea, juices, and water.

Within the CSD segment consumers have been moving away from sugared drinks, opting instead for
diet beverages, which do not generally contain any sugar or calories.

Though KO has been somewhat slow to respond to this shift in consumer preferences, it has recently
begun to increase its development of both diet CSD and non-CSD beverages. KO is faced with the
task of balancing the risk of new innovations with the low growth rates of established brands, a
predicament for manufactures throughout the beverage industry.

 Integrated Bottler Strategy Increases Flexibility:

After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging beverage
maker, one of the first areas that he targeted for improvement was KO's frayed relations with its
extensive network of bottlers. Since consolidating all company-owned bottlers into the Bottling
Investments division, Isdell has continued to increase KO's interest in its bottlers through stake
purchases or outright buyouts. This strategy represents a weakening of the division between KO's
production and distribution operations. Isdell believes that by combining production and distribution
operations the company will have enhanced its ability to quickly respond to changing market
conditions. In KO's 2007 Q3 Analyst call, Isdell credited the outright purchase of Coca-Cola Bottlers
Philippines (CCBPI) for double-digit volume growth in that country. Additionally, KO has signed
new agreements with many of its bottlers which allow them to distribute drinks produced by other
companies. For example, Coca-Cola Enterprises (CCE) now distributes Arizona, a ready-to-drink tea
made by Ferolito, Vultaggio & Sons, an American iced-tea company. Isdell sees these agreements as
another way of taking advantage of the rapidly growing non-CSD market.

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 Bottled Water Falling Out of Favour:

In Q3 2009, Dasani bottled water's revenues fell by double digits; this decrease is emblematic of the
bottled water industry as a whole. In August 2009, the Wall Street Journal reported that sales of
bottled water had fallen for the first time in five years. The combination of the recession and upper
class consumers' increased environmental consciousness has lead many customers to cut back on
bottled water in favour of tap water and reusable containers.

Following this
trend, at least one town in Washington state and one in Australia have outlawed the selling of bottled
water within their city limits. In 2008, bottled water was the third most popular beverage (behind
soda and milk), but compared to 2007, Americans consumption declined for the first time, down to
8.7 billion gallons from 8.8 billion gallons. Although this is a seemingly small decrease, industry
experts don't expect bottled water to bounce back anytime soon.

 Dollar Affects International Performance:

Another trend affecting Coca-Cola is the relative strength of the U.S. Dollar (USD). Although the
company is based in the US, KO derives about 75% of its operating income from outside United
States. Because of this, the company is very sensitive to the strength of the dollar. As foreign
currencies weaken relative to the dollar, goods sold in foreign markets are suddenly worth fewer
dollars back in the US, lowering earnings. Thus, if the dollar strengthens (as it did in the second half
of 2008 and 2009), it has a negative effect on KO's earnings. Coca-Cola executives expect currency
fluctuations to adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by
high single digits.

KO has broad exposure to foreign currencies and actively hedges a large portion of these to avoid
wide swings in earnings from currency fluctuations. Although this hedging insulates from the
potential downside of a strengthening dollar, it also limits larger gains from drastic downswings in
the dollar's value.

 Commodity Cost Fluctuations Affect Margins:

The Coca-Cola Company’s profitability can be affected both directly and indirectly by the costs of
various production inputs. KO itself is responsible for purchasing the raw materials used to make its
concentrates and syrups. Variations in the prices for these goods can affect the company’s total cost
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of production as well as its profit margins. Changes in the production costs of bottlers can also impact
KO’s profitability, though in a more indirect way. If the raw materials necessary for bottling become
more expensive, the bottler may be forced to drastically raise prices to compensate.
Such a price increase would likely hurt KO, given the competitive nature of the non-alcoholic
beverage industry, and provide a possible incentive for consumers to switch to other companies’
beverages. Aluminium, corn, and PET resin are three examples of such production goods used by
bottlers that could have significant bearing on the Coca-Cola Company’s profit margins. In 2007, the
prices of these commodities rose drastically with general commodities bubble and dramatically
pressured margins. They receded in 2008, but the possibility of another significant rise in
Commodities represents a constant threat to profits.

POTER’S FIVE FORCES

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 RIVALRY AMONG EXISTING FIRMS:

The greatest competition that Coca-cola faces is from the rival sellers within the industry. Coca-Cola,
Pepsi Co, and Cadbury Schweppes are among the largest competitors in this industry, and they are all
globally established which creates a great amount of competition. Aside from these major players,
smaller companies such as Cott Corporation and National Beverage Company make up the remaining
market share. All five of these companies make a portion of their profits outside of the United States.

Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola, Diet Coke, Fanta, and
Sprite), it had lower sales in 2005 than did PepsiCo (Murray, 2006c). However, Coca-Cola has higher
sales in the global market than PepsiCo, PepsiCo is the main competitor for Coca-Cola and these two
brands have been in a power struggle for years (Murray, 2006c). Coke has been more dominant with
a 53% of market share as in 1999 compared to Pepsi with a market share of 21%.

According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market share
has increased to 30.8%, while the Coca-Cola Company's has decreased to 42.7% due to Pepsi
marketing schemes still the higher large gap between the market share can be attributed to the fact
that Coca-Cola took advantage of Pepsi entering the market late and has set up its bottler's and
distribution network especially in developed markets.

"The Coca-Cola Company" is the largest soft drink company in the world. Every year 800,000,000
servings of just "Coca-Cola" are sold in the United States alone. Bottling plants with some exceptions
are locally owned and operated by independent business people who are native to the nations in
which they are located. Coca-Cola manufactures, distributes and markets non-alcoholic beverage
concentrates and syrups, including fountain syrups.

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It supplies concentrates and beverage bases used to make the products and provides management
assistance to help it's bottler's ensure the profitable growth of their business. This has put Pepsi at a
significant disadvantage compared to US market. Overall, Coca-Cola continues to outsell Pepsi in
almost all areas of the world. However, exceptions include India, Saudi Arabia and Pakistan.

By most accounts, Coca-Cola was India's leading soft drink until 1977 when it left India after a new
government ordered, The Coca-Cola Company to turn over its secret formula for Coke and dilute its
stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA).

In 1988, PepsiCo gained entry to India by creating a joint venture with the Punjab government-
owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed. PepsiCo
bought out its partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company
returned in pursuance of India's Liberalization policy. In 2005, The Coca-Cola Company and PepsiCo
together held 95% market share of soft-drink sales in India. Coca-Cola India's market share was
52.5%.

In Russia, Pepsi initially had a larger market share than Coke but it was undercut once the Cold War
ended. In 1972, Pepsi Co Company struck a barter agreement with the government of the Soviet
Union, in which Pepsi Co was granted exportation and Western marketing rights to Stolichnaya
vodka in exchange for importation and Soviet marketing of Pepsi-Cola.

This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.
Pepsi, as one of the first American products in the Soviet Union, became a symbol of that relationship
and the Soviet policy.

Brand name loyalty is another competitive pressure. The Brand Keys Customer Loyalty Leaders
Survey (2004) shows the brands with the greatest customer loyalty in all industries. Diet Pepsi ranked
17th and Diet Coke ranked 36th as having the most loyal customers to their brands. The new
competition between rival sellers is to create new varieties of soft drinks, such as vanilla and cherry,
in order to increase sales and getting new customers.

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Pepsi is however trying to counter this by competing more aggressively in the emerging economies
where the dominance of Coke is not as pronounced, with the growth in emerging markets
significantly expected to exceed the developed markets, rivalry in international market is going to be
more pronounced.

Pepsi advertisements often focused on celebrities, choosing Pepsi over Coke, supporting Pepsi's
positioning as "The Choice of a New Generation." In 1975, Pepsi began showing people doing blind
taste tests called Pepsi Challenge in which they preferred one product over the other. Pepsi started
hiring more popular spokespersons to promote their products.

In the late 1990s, Pepsi launched its most successful long-term strategy of the Cola Wars, Pepsi Stuff.
Consumers were invited to "Drink Pepsi, Get Stuff" and collect Pepsi Points on billions of packages
and cups. They could redeem the points for free Pepsi lifestyle merchandise. After researching and
testing the program for over two years to ensure that it resonated with consumers, Pepsi launched
Pepsi Stuff, which was an instant success.

Tens of millions consumers participated. Pepsi outperformed Coke during the summer of the Atlanta
Olympics, held at Coke's hometown where Coke was the lead sponsor for the Games. Due to its
success, the program was expanded to include Mountain Dew into Pepsi's international markets
worldwide. The company continued to run the program for many years, continually innovating with
new features each year.

Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005 &
Coca-Cola retaliated with Coke Rewards. This cola war has now concluded, with Pepsi Stuff ending
its services and Coke Rewards still offering prizes on their website. Both were loyalty programs that
give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops,
then submitting codes online for a certain number of points. However, Pepsi's online partnership with
Amazon allowed consumers to buy various products with their "Pepsi Points", such as mp3
downloads. Both Coca-Cola and coke previously had a partnership with the iTunes Store.

 POTENTIAL ENTRANTS:

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New entrants are not a strong competitive pressure for the soft drink industry. Coca-Cola and Pepsi
Co dominate the industry with their strong brand name and great distribution channels. In addition,
the soft-drink industry is fully saturated and growth is small. This makes it very difficult for new,
unknown entrants to start competing against the existing firms.

Another barrier to entry is the high fixed costs for warehouses, trucks, and labour, and economies of
scale. New entrants cannot compete in price without economies of scale. These high capital
requirements and market saturation make it extremely difficult for companies to enter the soft drink
industry therefore new entrants are not a strong competitive force.

Capital requirements for producing, promoting, and establishing a new soft drink traditionally have
been viewed as extremely high. According to industry experts, this makes the likelihood of potential
entry by new players quite low, except perhaps in much localized situations that matter little to Coke
or Pepsi. Yet, while this view may reflect conventional wisdom, some industry observers question
whether a new time is coming, with 'new age' beverages selling to well-informed and health-
informed and health-conscious consumers. This issue was beginning to grab the attention of both
Coke and Pepsi in the summer of 1992, when they both were not able to explain a drop in their June
1992 sales.

 SUBSTITUTES:

Numerous beverages are available as substitutes for soft drinks. Citrus beverages and fruit juices are
the more popular substitutes. Availability of shelf space in retail stores as well as advertising and
promotion traditionally has had a significant effect on beverage purchasing behaviour. Overall total
liquid consumption in the United States in 1991 included Coca-Cola's 10% share of all liquid
consumption.

“For years the story in the non-alcoholic sector centred on the power struggle between Coke and
Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product
flavours and looking to noncarbonated beverages for growth.”

Substitute products are those competitors that are not in the soft drink industry. Such substitutes for
Coca-Cola products are bottled water, sports drinks, coffee, and tea, juices etc.
Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious

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consumer. There are progressively more varieties in the water and sports drinks that appeal to
different consumer's tastes, but also appear healthier than soft drinks.

In addition, coffee and tea are competitive substitutes because they provide caffeine. The consumers
who purchase a lot of soft drinks may substitute coffee if they want to keep the caffeine and lose the
sugar and carbonation.

Blended coffees are also becoming popular with the increasing number of Starbucks, Barista and
CCD stores that offer many different flavours to appeal to all consumer markets. It is also cheap for
consumers to switch to these substitutes making the threat of substitute products very strong
(Datamonitor, 2005).

The growth rate has been recently criticized due to the market saturation of soft drinks. Datamonitor
(2005) stated, “Looking ahead, despite solid growth in consumption, the global soft drinks market is
expected to slightly decelerate, reflecting stagnation of market prices.” The change attributed to the
other growing sectors of the non-alcoholic industry including tea & coffee is 11.8% and bottled water
is 9.3%. Sports drinks and energy drinks are also expected to increase in growth as competitors start
adopting new product lines.

Profitability in the soft drink industry will remain rather solid, but market saturation has caused
analysts to suspect a slight deceleration of growth in the industry (2005). Because of this, soft drink
leaders are establishing themselves in alternative markets such as the snack, confections, bottled
water, and sports drinks industries.

In order for soft drink companies to continue to grow and increase profits they will need to diversify
their product offerings. So in order to compete with the substitutes industry, coca-cola has diversified
from just carbonated drink industry to other substitute and so have other brands like Pepsi, Dr
pepper/Snapple.

 BARGANING POWER OF BUYERS:

Individual consumers are the ultimate buyers of soft drinks. However, Coke and Pepsi's real 'buyers'
have been local bottlers who are franchised -or are owned, especially in the case of Coke- to bottle
the companies' products and to whom each company sells its patented syrups or concentrates. While

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Coke and Pepsi issue their franchise, these bottlers are in effect the 'conduit' through which these
international cola brands get to local consumers

Through the early 1980's, Coke's domestic bottlers were typically independent family businesses
deriving from franchises issued early in the century. Pepsi had a collection of similar franchises, plus
a few large franchisees that owned many locations. Until 1980, Coke and Pepsi were somewhat
restricted in owning bottling facilities, which was viewed as a restraint of free trade. Jimmy Carter, a
Coke fan, changed that by signing legislation to allow soft-drink companies to own bottling
companies or territories, plus upholding the territorial integrity of soft-drink franchises, shortly
before he left office.

Also, the three most important channels for soft drinks are supermarkets, fountain sales, and
vending. In 1987, supermarkets accounted for about 40% of total U.S. soft drink industry sales,
fountain sales represented about 25%, and vending accounted for approximately 13%. Other retailers
represent the remaining percentage.

While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling
companies, Coca-Cola uses its own network of wholesalers for their fountain syrup distribution, and
Pepsi distributes its fountain syrup through its bottlers.

 BARGANING POWER SUPPLIERS:

The principal raw material used by the soft-drink industry in the United States is high fructose corn
syrup, a form of sugar, which is available from numerous domestic sources. The principal raw
material used by the soft-drink industry outside the United States is sucrose. It likewise is available
from numerous sources.

Another raw material increasingly used by the soft-drink industry is aspartame, a sweetening agent
used in low-calorie soft-drink products. Until January 1993, aspartame was available from just one
source -the NutraSweet Company, a subsidiary of the Monsanto Company- in the United States due
to its patent, which expired at the end of 1992.

Coke managers have long held 'power' over sugar suppliers. They view the recently expired
aspartame patents as only enhancing their power relative to suppliers.

PESTEL ANALYSIS OF COCA- COLA

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It is a tool
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that helps the organisations for making strategies and to know the EXTERNAL environment in which
the organisation is working and is going to work in the future.

Coca-Cola beverage, which is the leading manufacturer and distributor of non-alcoholic drinks also
need to undergo this PESTLE analysis to know about the external environment (especially their
competitors and the opportunities available) in order to keep pace with the fast growing economy.

Political Analysis:

Political factors are how far a government intervenes in the operations of the company. The political
factors may include tax policy, trade restrictions, environmental policy, laws imposed on the
recruiting labours, amount of permitted goods by the government and the service provided by the
government.

Globally, Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and Drug
Administration), it is an agency in the United States Department of Health and Human Services. Its
headquarters is in USA and it has started opening offices in foreign countries as well. The job of the
FDA is to check and certify whether the ingredients used in the manufacturing of Coca-Cola products
in the particular country is meeting to the standards or not. In Coca-Cola the company takes all the
necessary steps to analyze thoroughly before introducing any ingredients in its products and get prior
approval from the FDA. The company also has to take into consideration of the regulation imposed
by FDA on plastic bottled products.

Apart from FDA the other political factors includes tax policies and accounting standards. The
accounting standards used by the company changes from time to time which have a significant role in
the reported results.

The company also is subjected to income tax policies according to the jurisdiction of various
countries. In addition to this, the company is also subjected to import and excise duties for
distribution of the products in the countries where it does not have the outsourcing [Link], if
there is any unrest or changes in the government and any kind of protest by the political activists may
decline the demand for the products. Also the situations like the unsure conditions prevailing in Iraq
and escalation of the terrorist activities in these areas could affect the international market of our
product. It creates an inability for the company to penetrate in the markets of such countries.

Economic Factors:

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The economic factors analyze the potential areas where the firm can grow and expand. It includes the
economic growth of the country, interest rates, exchange rates, inflation rates, wage rates and
unemployment in the country.

The company first analyzes the economic condition of the country before venturing into that country.
When there is an economic growth in the country, the purchasing power among people increases. It
gives the company or the marketer a good chance to market the product. Coca-Cola, in the past
identified this correctly and rightly started its distribution across various countries. The net operating
profits for the company outside US stands at around 72%. Along with this the company uses 63
various types of currencies other than US Dollar. Hence there is a definite impact in the revenues due
to the fluctuating foreign currency exchange rates. A strong and weak currency tends to affect the
exporting of the products globally.

Interest rates are the rate which is imposed on the company for the money they have borrowed from
government. When there is an increase in the interest rates, it may deter the company in further
investment as the cost for borrowing is higher. Coca-Cola uses derivative financial instruments to
cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand, when there is an
increase in the inflation the employee demand for a higher wage rate to cope up with the cost of
living.

This comes as additional cost for the company which cannot be reflected in the price of the final
product as the competition and risk in this segment is higher. This is a threat in the external
environment faced by the company. From the above explanation it is clearly seen that the economic
factors involves a major impact in the behaviour of the company during various economic situations.

Social Factors:

Social factors are mainly the culture aspects and attitude, health consciousness among people,
population growth with age distribution, emphasis on safety. The company cannot change the social
factors but the company has to adjust itself to the changing society. The company adapts various
management strategies to adapt to these social trends.

Coca-Cola which is a B2C company, is directly related to the customer, so social changes are the
most important factors to consider. Each and every country has a unique culture and attitude among
the people. It is very important to know about the culture before marketing in a particular country.
Coca-Cola has about 3300+ products in their stable, when entering into a country it does not

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introduce all the products. It introduces minimum number of products according to the culture of the
country and the attitude of the people.

Consumers and government are becoming increasingly aware of the public health consequences,
mainly obesity which is the second social factor in the soft drinks industry. It inspired the company to
venture into the areas of Diet coke and zero calorie soft drinks. The problem of obesity is taken
seriously among the youngsters who like to maintain a good physique. Hence coke introduced dietary
products for those youngsters who can enjoy coke with zero calories. In one of the study it is said that
“Consumer from the age groups 37 to 55 are also increasingly concerned with nutrition”. Since many
are aware, they are concerned with the longevity of their lives. This will affect the demand of the
company in the existing product and also is an opportunity to venture into new health and energy
drinks industry.

Population growth rate and the age distribution is another social factor to be considered. It is very
important because non-alcoholic markets have most of its share from the children and youngsters.
Adults used to celebrate mostly with alcohol. The age distribution of the country becomes important
for the success of the product in a country.

Technological Factors:

Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of the
products is relatively a Low-Tech business, although the creation of a new product with the perfect
blend and taste is a science (an art in itself).

Technological contributions are most important in packaging. The company rely on their bottling
partners for a significant portion of their business. Nearly 83% of the worldwide unit case volume is
manufactured and distributed by their bottling partners in whom the company does not have
controlling power. Hence it is necessary for the company to maintain a cordial relation with their
bottling partners. If the company do not give ample support in pricing, marketing and advertising
then the bottling industry while increase their short term profits, may become detrimental to the
company.

The advancement in technology in the company has led to: Introduction of new ways for the
availability of Coca-Cola, it introduced general vending machines all over the world. In products it

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led to the development of new products like Cherry Coke, Diet Coke etc. The technical advancement
in the bottling industries include, introduction of recyclable and non refillable bottles, introduction of
cans which are trendy, stylish and popular among the youngsters.

Legal Factors
The legal factors include discrimination law, customer law, antitrust law, employment law and health
and safety law. In Coca-Cola the business is subjected to various laws and regulation in the numerous
countries in which they do the business, the laws include competition, product safety, advertising and
labelling, container deposits, environment protection, labour practices.

In the US the products of the company is subjected to various acts like Federal Food, Drug and
Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various
environment related acts and regulations, the production, distribution, sale and advertising of all the
products are subjected to various laws and regulations. Changes in these laws could result in
increased costs and capital expenditures, which affects the company profitability and also the
production and distribution of the products.

Various jurisdictions may adopt significant regulations in the additional product labelling and
warning of certain chemical content or perceived health consequences. These requirements if become
applicable in the future the company must be ready to accept and have necessary changes in hand for
the same.

Environment Factors
These factors include the environment such as the weather conditions and the seasons in which
people prefer to buy cool beverages. Also the company must follow the environmental issues related
to the product manufacturing, packaging and distributing in various countries.

SWOT ANALYSIS OF COCA-COLA

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STRENGTHES WEAKNESS
Negative Publicity.
World's leading brand.
Decline in cash from
Large scale of operations.
Operating Activities.
Robust revenue growth in 3
Sluggish Performance in
segments.
North America.
SWOT
ANALYSIS THREATS
OPPORTUNITIES
Acquisitions. Intense Competition.
Growing bottled water Dependence on bottling
market. Patners.
Growing Hispanic Population Sluggish growth of
in U.S. Carbonated beverages.

Fig 2.1 SWOT ANALYSIS OF COCA-COLA

STRENGTHES:

 WORLD’S LEADING BRAND

Coca-Cola has strong brand recognition across the globe. The company has a leading brand
value and a strong brand portfolio. Business-Week and Inter-brand, a branding consultancy,
recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in
[Link] Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks
well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690
million Furthermore; Coca-Cola owns a large portfolio of product brands. The company owns four of
the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.

Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry
Coke and Coke with Lemon. Over the years, the company has made large investments in brand
promotions. Consequently, Coca-cola is one of the best recognized global brands. The
company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new
markets and consolidate existing ones.

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 LARGE SCALE OF OPERATIONS

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is the
largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in
the world. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. The
company currently sells its products in more than 200 countries. Of the approximately 52 billion
beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned
by or licensed to Coca-Cola account for more than 1.4 billion.

The company’s operations are supported by a strong infrastructure across the world. Coca-Cola owns
and operates 32 principal beverage concentrates and/or syrup manufacturing plants located
throughout the world.

In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and canning
plants located outside the US. The company also owns bottled water production and still beverage
facilities as well as a facility that manufactures juice concentrates. The company’s large scale of
operation allows it to feed upcoming markets with relative ease and enhances its revenue generation
capacity.

 ROBUST REVENUE GROWTH IN 3 SEGMENTS

Coca-Cola’s revenues recorded a double digit growth, in three operating segments. These three
segments are Latin America, ‘East, South Asia, and Pacific Rim’ and Bottling investments. Revenues
from Latin America grew by 20.4% during fiscal 2006, over 2005. During the same period, revenues
from ‘East, South Asia, and Pacific Rim’ grew by 10.6% while revenues from the bottling
investments segment by 19.9%.

Together, the three segments of “Latin America”, “East, South Asia” and “Pacific Rim” bottling
investments, accounted for 34.8% of total revenues during fiscal 2006. Robust revenues growth rates
in these segments contributed to top-line growth for Coca-Cola during 2006.

WEAKNESS:

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 NEGATIVE PUBLICITY

The Coca-Cola Company has been involved in a number of controversies and lawsuits related to its
relationship with human rights violations and other perceived unethical practices. There have been
continuing criticisms regarding the Coca-Cola Company's relation to the Middle East and U.S.
foreign policy. The company received negative publicity in India during September [Link]
company was accused by the Centre for Science and Environment (CSE) of selling products
containing pesticide residues. Coca-Cola products sold in and around the Indian national capital
region contained a hazardous pesticide residue.

On 10 December 2008, the US Food and Drug Administration (FDA) wrote to Mr. Muhtar Kent,
President and Chief Executive Officer, to warn him that the FDA had concluded that Coca-Cola's
product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food, Drug, and Cosmetic Act.

In January 2009, the US consumer group the Centre for Science in the Public Interest filed a class-
action lawsuit against Coca-Cola. The lawsuit was in regards to claims made, along with the
company's flavours, of Vitamin Water. Claims say that the 33 grams of sugar are more harmful than
the vitamins and other additives are helpful.

 SLUGGISH PERFORMANCE IN NORTH AMERICA

Coca-Cola’s performance in North America was far from robust. North America is Coca-Cola’s core
market generating about 30% of total revenues during fiscal 2006. Therefore, a strong performance in
North America is important for the company.

In North
America the sale of unit cases did not record any growth. Unit case retail volume in North America
decreased 1% primarily due to weak sparkling beverage trends in the second half of 2006 and decline

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in the warehouse-delivered water and juice businesses. Moreover, the company also expects
performance in North America to be weak during 2007. Sluggish performance in North America
could impact the company’s future growth prospects and prevent Coca-Cola from recording a more
robust top-line growth.

 DECLINE IN CASH FROM OPERATING ACTIVITIES

The company’s cash flow from operating activities declined during fiscal 2006. Cash flows from
operating activities decreased 7% in 2006 compared to 2005. Net cash provided by operating
activities reached $5,957 million in 2006, from $6,423 million in 2005. Coca-Cola’s cash flows from
operating activities in 2006 also decreased compared with 2005 as a result of a contribution of
approximately $216 million to a tax-qualified trust to fund retiree medical benefits.

The decrease was also the result of certain marketing accruals recorded in [Link] in cash from
operating activities reduces availability of funds for the company’s investing and financing activities,
which, in turn, increases the company’s exposure to debt markets and fluctuating interest rates.

OPPORTUNITIES:

 ACQUISITIONS

During 2006, its acquisitions included Kerry Beverages, (KBL), which was subsequently,
reappointed Coca-Cola China Industries (CCCIL). Coca-Cola acquired a controlling shareholding in
KBL, its bottling joint venture with the Kerry Group, in Hong Kong.
The acquisition extended Coca-Cola’s control over manufacturing and distribution joint ventures in
nine Chinese provinces.

In Germany the company acquired Apollinaris which sells sparkling and still mineral water. Coca-
Cola has also acquired a 100% interest in TJC Holdings, a bottling company in South

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Africa. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. These
acquisitions strengthened Coca-Cola’s international operations.

These also give Coca- Cola an opportunity for growth, through new product launch or greater
penetration of existing markets. Stronger international operations increase the company’s capacity to
penetrate international markets and also gives it an opportunity to diversity its revenue stream. On 25
February 2010, Coco cola confirms to acquire the Coca cola enterprises (CCE) one the biggest bottler
in North America. This strategy of coca cola strengthens its operations internationally.

 GROWING BOTTLED WATER MARKET

Bottled water is one of the fastest-growing segments in the world’s food and beverage market owing
to increasing health concerns. The market for bottled water in the US generated revenues of about
$15.6 billion in 2006.

Market consumption volumes were estimated to be 30 billion litres in 2006. The market's
consumption volume is expected to rise to 38.6 billion units by the end of 2010. This represents a
CAGR of 6.9% during 2005-2010.

In terms of value, the bottled water market is forecast to reach $19.3 billion by the end of 2010. In the
bottled water market, the revenue of flavoured water (water-based, slightly sweetened refreshment
drink) segment is growing by about $10 billion annually. The company’s Dasani brand water is the
third best-selling bottled water in the US. Coca-Cola could leverage its strong position in the bottled
water segment to take advantage of growing demand for flavoured water.

 GROWING HISPANIC POPULATION IN U.S

Hispanics are growing rapidly both in number and economic power. As a result, they have become
more important to marketers than ever before. In 2006, about 11.6 million US households were
estimated to be Hispanic. This translates into a Hispanic population of about 42 million.

The US Census estimates that by 2020, the Hispanic population will reach 60 million or almost 18%
of the total US population. The economic influence of Hispanics is growing even faster than their
population. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1
trillion by 2008- a 55% increase over 2003 levels.

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Coca-Cola has extensive operations and an extensive product portfolio in the US. The company can
benefit from an expanding Hispanic population in the US, which would translate into higher
consumption of Coca-Cola products and higher revenues for the company.

THREATS:

 INTENSE COMPETITION

Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry.
The company faces intense competition in various markets from regional as well as global players.
Also, the company faces competition from various non-alcoholic sparkling beverages including juices
and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, including the US,
PepsiCo is one of the company’s primary competitors. Other significant competitors include Nestle,
Cadbury Schweppes, Groupe DANONE and Kraft Foods.

Competitive factors impacting the company’s business include pricing, advertising, sales promotion
programs, product innovation, and brand and trademark development and protection. Intense
competition could impact Coca-Cola’s market share and revenue growth rates.

 DEPENDENCE ON BOTTLING PARTNERS

Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom it
doesn’t have any ownership interest or in which it has no controlling ownership interest. In 2006,
approximately 83% of its worldwide unit case volumes were produced and distributed by bottling
partners in which the company did not have any controlling interests. As independent companies, its
bottling partners, some of whom are publicly traded companies, make their own business decisions
that may not always be in line with the company’s interests. In addition, many of its bottling partners
have the right to manufacture or distribute their own products or certain products of other beverage
companies.

If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners, then the
partners may take actions that, while maximizing their own short-term profits, may be detrimental to
Coca-Cola. These bottlers may devote more resources to business opportunities or products other
than those beneficial for Coca-Cola. Such actions could, in the long run, have an adverse effect on
Coca-Cola’s profitability. In addition, loss of one or more of its major

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customers by any one of its major bottling partners could indirectly affect Coca-Cola’s business
results. Such dependence on third parties is a weak link in Coca-Cola’s operations and increases the
company’s business risks.

 SLIGGISH GROWTH OF CARBONATED BEVERAGES

US consumers have started to look for greater variety in their drinks and are becoming increasingly
health conscious. This has led to a decrease in the consumption of carbonated and other sweetened
beverages in the US. The US carbonated soft drinks market generated total revenues of $63.9 billion
in 2005, this representing a compound annual growth rate (CAGR) of only 0.2% for the five-year
period spanning 2001-2005. The performance of the market is forecast to decelerate, with an
anticipated compound annual rate of change (CAGR) of -0.3% for the five-year period 2005-2010
expected to drive the market to a value of $62.9 billion by the end of 2010.

Moreover in the recent years, beverage companies such as Coca-Cola have been criticized for selling
carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical
content, and have been implicated for facilitating poor diet and increasing childhood obesity.
Moreover, the US is the company’s core market. Coca-Cola already expects its performance in the
region to be sluggish during 2007. Coca-Cola’s revenues could be adversely affected by a slowdown
in the US carbonated beverage market.

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Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close down
its operation by a socialist government in the drive for self sufficiency. After 16 years of absence,
coca cola returned to India and witnessed a different culture and economic platform. During their
absence, Parle brothers introduced a new type of cola called THUMS UP. Along with, they also
formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA. In 1993, coca cola
bought the whole Parle Brother operation, in a hope to beat the main competitor (Pepsi). They
presumed that with the tried and tested products of Parle they will be able to regain their throne in the
Indian soft drink market. Pepsi having a 6 year head start helped revive the demand for global cola
but it was not easy for the soft drink giant (coca cola) to return to India. Pepsi put more focus on the
youth of the country in their advertisements but coca cola tried influencing Indians with the
‘American’ way of life, which turned out to be a mistake.

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Coca-Cola invested heavily in India for the first five years, which got them credit of being one of the
biggest investor in the country; however, their sales figures were not so impressive. Hence, they had
to re-think their market strategies. Coca-Cola learned from Hindustan Lever that reducing their will
result in more turnover, hence leading to profit. They launched an extensive market research in India.
They ascertained that in India 3 As must be applied; Affordability, Availability and Acceptability.
Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”, “Narial Pani”,
“Lassi” etc. and reached to a conclusion that competitive pricing was unavoidable. Since then they
introduced a 200 ml glass bottle for Rs.5.

Further, they had different advertising campaigns for different regions of the country. In the southern
part, their strategy was to make Bollywood or Tamil stars to endorse their products. In various
regions they tried portraying coca cola products with different regional food products. One of the
most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they featured the same quote
with different regional entities.

Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e. 60% in
Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water Segment,
compared to its arch rival, Pepsi. Diversifying their product range and having a competitive pricing
policy, they have regained their throne. With virtually all the goods and services required to produce
and market Coca-Cola being made in India, the business system of the Company directly employs
approximately 6,000 people, and indirectly creates employment for more than 125,000 people in
related industries through its vast procurement, supply, and distribution System.

The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another
25 being owned by franchisees. That apart, a network of 21 contract packers manufactures a range of
products for the Company.

On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the narrow
alleyways of Indian cities – constantly keep our brands available in every nook and corner of the
Country’s remotest areas.

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PRODUCTS OF COCA-COLA INDIA

COCA-COLA:-

In India Coca-Cola was 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 remote and inaccessible parts
of the nation.

Over the past fourteen years has enthralled consumers in India by connecting with passions of India –
Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life
Ho Toh Aise” were very popular & had entered youths vocabulary. In [Link]-Cola launched its
iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India’s
favourite soft drink brand.

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.0

LIMCA:-

Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling drink
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in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite combined with
the single minded proposition of the brand as the provider of “Freshness”.Limca can cast a tangy
refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise” hence Lime Sa, Limca has
lived up to its promises of refreshment and has been the original thirst choice of millions of
customers for over 3 decades.

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.1

THUMS UP:-

Thums up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in
1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is known for its
strong, fizzy taste and it confident, mature and uniquely masculine attitude. This brand clearly seeks
to separate the men from the boys.

GLASS PET CAN FOUNTAIN

200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml, 100ml

Table - 1.2

SPRITE:-

Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in
India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen icon.

RGB PET CAN FOUNTAIN

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200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES
1250ml, 1500ml,
2000ml, 2250ml

Table – 1.3

FANTA:-

Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market
place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta stands for its
vibrant colour, 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.

GLASS PET CAN FOUNTAIN

200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

2.25L, 500ml, 100ml

Table – 1.4

MINUTE MAID PULPY ORANGE:-

The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation
developed orange juice powder. The company developed a process that eliminated 80% of the water
in the orange juice, forming a frozen concentrate that when reconstitute created orange juice. They
branded it Minute Maid a name connoting the convenience and the ease of preparation. Minute Maid
thus moved from a powdered concentrate to the first ever orange juice from concentrate.

The launch of Minute Maid in India (started with the south of the country) is aimed to further extend
the leadership of Coca-Cola in India in the juice drink category.

Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.

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MAAZA:-

Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of mangoes.
Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mango
lover’s first choice.

RGB PET POCKET MAAZA

200ml, 250ml 250ml, 600ml, 1.2L 200ml

Table – 1.5

KINLEY:-

The importance of water can never be understated, Particularly in a nation such as India where water
governs the lives of the millions, be it as a part of everyday ritual or as the monsoon which gives life
to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company.

Available in PET 500ml and 1000ml.

GEORGIA GOLD COFFEE:-

Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee beverages
is the perfect solution for office and restaurant needs. Today Georgia coffee is available at Quick-
Service Restaurants, Airports, Cinemas and in Corporates across all major metros in India.

HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino,

Hot Chocolate, Cardamon Tea.
COLD BEVERAGES Ice Teas, Cold Coffee.

MARKETING MIX OF COCA-COLA INDIA

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 PRODUCT:-

Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite, Thums
Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where Coca-Cola
identified major opportunities. In 2002, Packaged drinking water in India was a Rs 1,000 cr industry
and growing by 40% every year. PDW was a low margin – high volume business, but it was an
attractive proposition for bottlers as it increased plant utilization rates. In this market Coke’s Kinley
was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s Aquafina. The product not only faced
intense competition but also was difficult to differentiate. Coke positioned Kinley as natural water
with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water).

In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers were
brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola to CCI’s product
line. This meant CCI had three orange, clear lime and cola drinks each in its portfolio.

 PRICE:-

Coke learnt with experience that price was a strategic weapon in an emerging market like India. An
increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many
Indian customers. In 2000, CCI conducted a yearlong experiment in coastal Andhra Pradesh by
introducing a 200ml bottle at Rs 7. The volumes went up by 30% demonstrating the importance of
consumer affordability. So the 200ml pack priced at Rs 5 was rolled out countrywide in January
2003. The advertising Campaign highlighted the affordability and Indian image.

To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places in
Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing marketing
exercise conducted in mid – 2002. In 2002 Kinley with 35% market share had become the leader in
the retail PDW segment and was contributing 20% of CCI’s revenues.

 PLACE:-

Coke pushed down responsibilities from corporate headquarters to the local business units. The aim
was to effectively align CCI's corporate resources, support systems and culture to leverage the local
capabilities. CCI's operations had been divided into North, Central and Southern regions. Each

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region had a president at the top, with divisions comprising marketing, finance, human resources and
bottling operations. The heads of the divisions reported to the CEO. Bottling operations were divided
into four companies directed by the bottling head from headquarters. Under the new plan, CCI shifted
to a six region profit center set up where product customization and packaging, marketing and brand
building were taken up locally. A Regional General Manager (RGM) headed each region with the
regional functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn
reported to CEO. The four bottling operations, with 37 bottling plants, were merged into Hindustan
Coca-Cola Beverages (HCCB). Each of the six regions had on an average six bottling plants. Each
plant was headed by an Area General Manager (AGM) and held profit center responsibility for a
business territory. He reported to the RGM as well as the head of bottling at the head quarters.

 PROMOTION:-

In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing
campaign positioned Coca-Cola as an international brand and did not emphasize local association.
Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums Up. Indeed the
marketing spend on Thums Up between 1993 and 1996 was almost negligible. The overall marketing
effort was also not focused as CCI changed the head of marketing three times during the period.
Thumps Up remained neglected. Inadequate marketing support for other Parle brands also led to their
declining market shares.

The bottlers taken over by Coke also had problems adjusting to a new work culture. They argued that
CCI's lack of interest in promoting Thumps Up was resulting in falling sales and asked CCI to take
corrective action.

Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen by
Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well known
personalities popular to this age group. During 90'ies Coke's promotion efforts did not seem to be
effective. They were focused on mega events like the 1996 Cricket World Cup held in India. CCI's
World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign.
Major analysts were surprised that Thumps Up was totally out of the picture during such a mega
event. In 1998 localization of marketing efforts, CCI signed up celebrities like Aamir Khan,
Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke also began efforts to rejuvenate the Parle
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brands, Limca and Thumps Up. In 1998, India was declared the fastest growing market within the
Coca-Cola system. But things were far from normal. Attempts at building growth through discounts
and PET take home segment were not very successful because of lack of coordination between the
launches and marketing back-up.

To maintain good relationships with bottlers and avoid defections to the other camp, dealers had been
pampered by offering expensive overseas trips. In 2000, Coke wrote off investments in India,
amounting to $400 Mn. The revised value of CCI's assets after the charge was $300 mn.

CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had become
India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a juice brand and
saw a growth of almost 30% in 2001. Since India was a large country of different tastes and cultures,
CCI customized its marketing strategy for different regions. It promoted the Coke brand in Delhi,
Thumps Up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu. Coke had plans to launch
Rimzim, a spicy soda drink in North Maharashtra.

PESTEL ANALYSIS OF COCA-COLA INDIA

PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental. It is a tool
that helps the organisations for making strategies and to know the EXTERNAL environment in which
the organisation is working and is going to work in the future.

Political Factors:

 Historical
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Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than revealing
its formula to the government. They re-entered the country in 1993. However, the primary barrier for
Coca-Cola’s entry into the Indian market was its political environment. Despite the liberalization of
the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers such
as bureaucracy and regulation, there was still a lot of protectionism. India’s past promotion of
“Indigenous availability” or “Swadeshi movement” depicted its affinity for local products. Due to
India’s suspicion of foreign business entering Indian markets, Coca Cola received alien status its re-
entry. This and some of the policies imposed on foreign enterprises proved as a hindrance to the
growth of the company in the country. To make things worse, the policies were neither clear nor
unchanging.

For example, foreign businesses were not allowed to market their products under the same name if
selling within the Indian market. Thus, Coca Cola had to be changed to Coca Cola India (and Pepsi
had to be renamed to Lehar Pepsi). However, the most controversial, and by far, the most damaging
was when Coca-Cola was forced to sign an agreement to sell 49% of its equity in order to buy out
Indian bottlers. Due to the lack of consistency in the legal aspects, more importance was being given
to lobbying the politicians.

 Recent Scenario

During recent times, Coca Cola India has faced its fair share of problems. On August 5 th 2003, The
Centre for Science and Environment (CSE), an activist group in India focused on environmental
sustainability issues (specifically the effects of industrialization and economic growth) issued a press
release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of
pesticide residues". According to tests conducted by the Pollution Monitoring Laboratory (PML) of
the CSE from April to August, three samples of twelve PepsiCo and Coca-Cola brands from across
the city were found to contain pesticide residues surpassing global standards by 30-36 times.

This had an adverse impact on the sales of Coca Cola, with a drop of almost 30-40%1 in only two
weeks on the heels of a 75% five-year growth trajectory. Many leading clubs, retailers, restaurants,

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and college campuses across the country had stopped selling Coca-Cola. This threatened the newly
achieved leadership attained over Pepsi due to a successful marketing campaign.

But this was not the end of Coca Cola’s troubles. There was widespread discontent around many of
their plants. For example, in Plachimada, Kerala, the communities in and around the Coca Cola plant
blamed the factory for their water problems. Due to this, the local Panchayat decided not to renew the
license issued to Coca Cola to “protect public interest". The company has also been accused of
illegally occupying a portion of the village property resources in Mehdiganj, near Varanasi. However,
there are certain positives as well, with a 22 percent increase in its unit case volume last quarter.
Economic Analysis:

The Indian economy sustained the global economic slowdown in the previous year and has shown a
tremendous economic growth. It showed 8.6% of growth in the last quarter of 2009-10 as compared
to 5.8% same time in the previous year. It has emerged as an attractive economy to invest in as many
opportunities has been recognized.

 Economic growth
India is ranked second in economic growth, just behind China. Analysts have said that India will be
the third biggest economy of the world in the coming year behind China and USA. With economic
growth many opportunities have been seen, which have attracted many foreign investor to the
company.

Coca cola India returned to the country in 1993, despite few problems in the start they have emerged
as the king of soft drink industry in India. The strong economic growth of India has resulted in coca
cola to invest heavily in sales and distributive channels. It has introduced two new products, Nimbu
Fresh and an energy drink ‘Burn’.

Coca cola registered 22% growth in their unit case volume in the second quarter (April-June). It is the
16th consecutive quarter of such growth out of which 13 are double digit. Coca cola India’s growth is

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in contrast to its overall performance, the beverage king reported a growth of just 5% (worldwide) in
the same quarter.

 Inflationary effects
Inflation is one of the main problems that Indian economy has been facing for a year now. Rising
prices in the food and other products doesn’t only effect the consumers it also has an adverse effect
on a company. The inflation rate for the year 2009 was recorded to be 11.49%. As prices have gone
up in India for various products, especially oil, there has been uncertainty in decision making of
almost every company. Coca cola India has also been affected by the same; it has been forced to
think about their input costs, as they have been rising due to inflation. Their expenditure has been
rising, with more costs in salaries, distribution channels and other operating costs. Beverage industry
being price competitive market, they have not revised their product prices.

Exchange rate
The exchange rate of rupee to US Dollar has been stable but in the previous months the rate has had a
tumultuous period. Exchange rate determines at what price will the company export its products and
import whatever is required by it. The previous year, the rate of rupee to USD touched 44, on an
average it has been around 47, so the exports earned less and the imports cost more. Therefore, coca
cola India had to bear some low profitable times. However, in the present scenario rates have reached
a stable level and exports are on an increasing trend.

Social Analysis:
Coca- Cola returned to India in 1993 after a 16 year hiatus, amidst competition from Leher Pepsi
which had the advantage of entering the country 7 years earlier. Initially, it struggled to find
acceptance as there were already other brands such as Parle’s Thums Up which existed in the market.
Coca-Cola had earlier focussed more on the American way of life in their advertising campaigns,
which the Indian consumers could not identify with. Also, they did not focus on competition from
other alternatives such as lemonade, Lassi etc.

These products had been around for centuries, and were also cheaper alternatives to Coca-Cola.
However, things were brought under control when Thums Up was bought over by Coca Cola, and

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more attention was paid by the company on their marketing mix.
With the lowering of their prices by almost 15-20%, introduction of newer products which appealed
to the Indian tastes, more investment in market research and focussing on the target group of 18-24
year olds, they were able to increase their market share and build brand loyalty.

Coca Cola today, has made significant investments to build its business in India. It has also generated
employment for almost 1,25,000 people in related industry through its procurement, supply and
distribution cycles.

The soft drink industry today is growing steadily due to the booming economy, strengthened middle
class and low per capita consumption. With the increase in health consciousness among the urban
consumers, the company has introduced newer products such as Diet Coke, which contain lesser
calories than ordinary Coca Cola. This is also responsible for the company shifting focus from
carbonated drinks to Fruit Drinks / Juices and bottled water.
The rural market had also been identified by Coca-Cola India as an attractive target, with almost 70%
of the country’s population. The company has recorded significant growth in recent years

Coca Cola India has also taken many initiatives as a responsible corporate citizen, by tying up with
many NGOs such as BAIF (or Bharatiya Agro Industries Foundation), SOS Children’s Villages and
Save the Children. It has also taken initiatives to promote education in rural areas.
Technological Analysis:
Coca-Cola has started operations of its R&D facility in India, with the view of localizing its product
portfolio. The major focus would be on non carbonated drinks and flavours. The company’s R&D
team has already rolled out drinks such as Maaza aam panna and also a Maaza mango milk drink, and
is exploring options to enter new categories in India such as juices in localised flavours, energy
drinks, sports drinks and flavoured water. These initiatives are being taken by the company to further
expand their product portfolio.
With the increasing importance of 360 degree media tools and overall ad spend on social media sets
likely to grow by almost 44%, Coca-Cola has increased ad spend on the internet. Case in point is the
recent 2009 Sprite campaign, which was first launched on the internet.

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Environmental Analysis:

Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed
in the footsteps. Coca Cola India’s Corporate Social Responsibility (CSR), is an initiative that
prioritizes many social and environmental issues; one of them being ‘water conservation’. They
support many community based rainwater harvesting projects and help lending conservation
education.

The company has made sure that the following ideas are considered during their operations:

1. Environmental due diligence before acquiring land

2. Environmental impact assessment before commencing project

3. Ground water and environment survey before selecting the site

4. Ban on purchasing CFC emitting refrigerating equipment

5. Waste water treatment facilities

6. Compliance with all regulatory environmental requirements

7. Energy conservation programs

By following these guidelines Coca-Cola India has helped the environment with consistent profits
and success. They seek to provide leadership in three different areas, these are as follows:

1. Water efficiency and water quality

2. Energy efficiency

3. Eliminating or minimizing solid waste.

Though being
an environmental friendly company, Coca Cola India had to face its share of controversies. On 4th
February, 2003, Centre of Science and Environment in India, released a report based on experiment
done by Pollution Monitoring Laboratory. In the experiment, they tested 17 packaged drinking water
brands and found that, Coca Cola’s Kinley has 15 times more pesticide residual levels than the

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stipulated norms, Bisleri had 59 times and Aquaplus had 109 times.

The main law governing the food safety is the 1954 Prevention of food alteration act, which stated
that pesticides should not be present in any food item but did not have law against pesticides being
present in soft drinks. However,

the Food Processing Order 1955 stated that the main ingredient used in soft drinks must be ‘potable
water’ but the Bureau of Indian Standards had no prescribed standards for pesticides in water. But
later it was found that BIS had stated that pesticides should not be present or it should not exceed
0.001 part per million. Further, the health ministry of India admitted that ‘there were lapses in PFA
regarding carbonated drinks’.

Fig 2.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA

Legal Analysis:
As the Indian consumer is getting more educated, the government is also paying special attention to
consumer laws. In the past, there were not so many laws protecting the benefits to the consumer but
now every business has to go by the law and fix their operations, strategies so as to satisfy their
consumers, and employees. Keeping in mind the consumer laws, employment laws, antitrust law,
discrimination laws etc. a business should plan out everything.

 Consumer Laws

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In the present scenario, consumer is the king, if a product is defective, not meeting the stated
standards a consumer can complain against the manufacturer. Complaining and getting the verdict the
court has made very fast and efficient as government of India has installed new consumers courts.
Their main job is to see that the consumer benefits are being met or not. When producing their
beverages, Coca Cola India has to make sure that they have written price, manufacturing date, expiry
date, batch no, nutritional facts are written on the packed product.

 Employment Laws

Ministry of Labour makes the laws for proper employment in the country. They have stipulated
norms on employing people from the country and getting expatriates in the company as well. India
has strict laws against employing child labour. Being a male dominated society, the ministry has
made sure that female employees are treated with respect and given equal importance at the work
place. Every field of work has got its own wage, these are to meet the norms and laws set by the
labour ministry. When employing anyone, coca cola India cannot discriminate on social, regional or
any racists’ basis. If it is found that the company has been violating the law, it has to face strict action
and fines.

 Health and safety laws

As coca cola produces a product that is consumed by the consumer as a food item, there are laws that
the company must abide by when producing it. Ministry of Food Processing Industries makes and
oversees the laws and norms for the food processing industries.

The Indian Parliament has recently passed the Food Safety and Standards Act, 2006 that overrides all
other food related laws.

It will specifically repeal eight laws:

 The Prevention of Food Adulteration Act, 1954.

 The Fruit Products Order, 1955.
 The Meat Food Products Order, 1973.
 The Vegetable Oil Products (Control) Order, 1947.
 The Edible Oils Packaging (Regulation) Order, 1998.
 The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967.
 The Milk and Milk Products Order, 1992.
 Essential Commodities Act, 1955 relating to food.
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From now on, the act establishes a regulatory body, the Food Safety and Standards Authority of
India. Anything that coca cola makes, have to make accordingly to the laws. They have to check the
weight, volume and ingredients of the product. The export or the import of the products by the
company has to meet the quality standards stipulated by the law.

 Anti-trust law
The Competition Commission of India was made under the Indian Competition Act 2002,
Monopolies Restrictive and Trade Practices Act 1969 was replaced by it. This committee looks after
all the issues regarding unethical means of doing business, competition issues and any dispute
between two different business entities. CLG competition and anti trust practices are as follows:

 Representing clients before the MRTP Commission in ‘monopolistic and restrictive trade
practices’ and ‘unfair trade practices’ matters.
 Legal Advice and sophisticated insight into the international best practices on competition
law.
 Consultancy services on specific issues - supply and distribution, pricing and marketing,
‘promotional materials’, mergers, acquisitions, amalgamation, licensing, joint operation and
research, joint buying, ‘dominant-firm’ status etc.
 Competition Audit and Due Diligence for developing appropriate guidelines for employees,
distributors, agents, franchisees etc.
 Legal Due Diligence on anti-competition, unfair and restrictive market practices.
 Drafting claims, counter-claims, replies, rejoinders, representations etc. on Competition Law
and related legal issues.
 Strategic policing on anti-competition market practices and trends.
 Policy due diligence for mergers, acquisitions, joint ventures with appropriate anti-trust
safeguard measures and policy.

All these laws help Coca Cola India to maintain its own brand and values. Any other business trying
to copy the brand of coca cola will face the strict action against itself. These laws help every business
to compete in a fair environment. As it is known that the coca cola and Pepsi are the fiercest rivals in
the beverage industry, the CCI makes sure that either of them does not indulge in unfair means to
make profits and hurt each other’s business.

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SWOT ANALYSIS OF COCA-COLA INDIA

STRENGTHES WEAKNESSES
Distribution Network. Health Care Issues.
Strong Brand Image. Small Scale Sector
Reservations.
Low Cost of Operation.

SWOT
ANALYSIS
OPPORTUNITIES
THREATS
Large Domestic Markets.
Imports.
Export Potential.
Tax & Regulatory Sector.
High Income among People.
Slowdown in Rural Demand.

Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA

STRENGTHES:

 DISTRIBUTION NETWORK

The Company has a strong and reliable distribution network. The network is formed on the basis of
the time of consumption and the amount of sale yielded by a particular customer in one transaction. It
has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and
8000 distributors. The distribution fleet includes different modes of distribution, from 10 tonne to
open bay three wheelers that can navigate the narrow alleyways of Indian cities – constantly keep
Coca-Cola brands available in every nook and corner of the Country’s remotest areas.

 STRONG BRAND IMAGE

Coke has its history of about more than a century and this prolonged sustenance has definitely added
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to the brand image in the minds of the consumers and to its wallet. The products produced and
marketed by Coca-Cola India have a strong brand image.

Strong brand names like Coca-Cola, Fanta, Thums up, Limca and Maaza add up to the brand name of
Coca-Cola Company as a whole. Coca Cola India for the first time has come out with corporate
campaign in India targeting its stakeholders. The multimedia campaign “Little Drops of Joy "
is aimed at raising the corporate brand image of the company which took a heavy beating with a
number of controversies it faced in different domains.

The new campaign is a part of a complete restructuring exercise in the Indian arm of this global
change. Coca Cola recently announced its new corporate strategy called the “5 Pillar" strategy. The
company has identified the 5 pillars as

 People.
 Planet.
 Portfolio.
 Partners.
 Performance.

 LOW COST OF OPERATIONS

In light of the company’s Affordability Strategy, Coca-Cola went about bringing a cost-focus culture
in the company. This included procurement Efficiencies – through focus on key input materials, trade
discipline and control and proactive tax management through tax incentives, excise duty reduction
and creating marketing companies. These measures have reduced the costs of operations and
increased profit margins.

WEAKNESSES:

 HEALTH CARE ISSUES

In India, there exists a major controversy concerning pesticides and other harmful chemicals in

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bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a
non- governmental organization in New Delhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins
including lindane, DDT, malathion and chlorpyrifos - pesticides that can contribute to cancer and a
breakdown of the immune system.

 SMALL SCALE SECTOR RESERVATIONS

The Company’s operations are carried out on a small scale and due to Government restrictions and
‘red-tapism’, the Company finds it very difficult to invest in technological advancements and achieve
economies of scale.

OPPORTUNITIES:

 LARGE DOMESTIC MARKETS

The domestic market for the products of the Company is very high as compared to any other soft
drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this
includes a 42 per cent share of the cola market.

Other products account for 16 per cent market share, chiefly led by Limca. The company appointed
50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets
for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola
amounts for 74% of the beverage market.

 EXPORT POTENTIAL

The Company can come up with new products which are not manufactured abroad, like Maaza etc
and export them to foreign nations. It can come up with strategies to eliminate apprehension from the
minds of the people towards the Coke products produced in India so that there will be a considerable
amount of exports and it is yet another opportunity to broaden future prospects and cater to the global

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markets rather than just domestic market.

 HIGHER INCOME AMONG PEOPLE

Development of India as a whole has lead to an increase in the per capita income thereby causing an
increase in disposable income. Unlike olden times, people now have the power of buying goods of
their choice without having to worry much about the flow of their income. Coca-Cola Company can
take advantage of such a situation and enhance their sales.

THREATS:

 IMPORTS
As India is developing at a fast pace, the per capita income has increased over the years and a
majority of the people are educated, the export levels have gone high. People understand trade to a
large extent and the demand for foreign goods has increased over the years.
If consumers shift onto imported beverages rather than have beverages manufactured within the
country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of
the Company.
 TAX & REGULATORY SECTOR
The tax system in India is accompanied by a variety of regulations at each stage on the consequence
from production to consumption. When a license is issued, the production capacity is mentioned on
the license and every time the production capacity needs to be increased, the license poses a problem.
Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth
of the Company and pose problems.

 SLOWDOWN IN RURAL DEMAND

The rural market may be alluring but it is not without its problems: Low per capita disposable
incomes that is half the urban disposable income; large number of daily wage earners, acute
dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals
and special occasions; poor roads; power problems; and inaccessibility to conventional advertising
media. All these problems might lead to a slowdown in the demand for the company’s products.

RESEARCH METHODOLOGY
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OBJECTIVES OF THE STUDY

 The main objective of the project is to analyze and study in efficient way the current
position of Coca- Cola Company.

 To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally.

This would help us identify areas of potential growth.

 The study was aimed to perform Market Analysis of Coca-Cola Company & find out
different factors effecting the growth of Coca-Cola.

 Another objective of the study was to perform Competitive analysis between Coca-
Cola and its competitors.

 To understand the reasons behind the purchase of Coca-Cola products.

SCOPE OF THE STUDY:-

This study basically tries to discover the current position of Coca-cola in the market. It
also tries to discover the preferences of the customers when posed with a choice between
Coca-Cola and Pepsi. It is primarily directed to the general public but was done only in
New Delhi, Noida and Greater Noida

RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the needed
information. It is overall operational pattern or framework of the project that stipulates what
information is to be collected from which source by what procedure.

There are three types of objectives in a marketing research project:-

 Exploratory Research.
 Descriptive Research.
 Casual Research.

1. Exploratory Research:-
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The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.

2. Descriptive Research:-

The objective of descriptive research is to describe things, such as the market potential for
a product or the demographics and attitudes of consumers who buy the product.

3. Casual Research:-

The objective of casual research is to test hypothesis about casual and effect relationships.

Based on the above definitions it can be established that this study is a Descriptive Research
as the attitudes of the customers who buy the products have been stated. Through this study
we are trying to analyze the various factors that may be responsible for the preference of
Coca-Cola products.

SOURCES OF DATA

The data has been collected from both primary as well as secondary sources.

SECONDARY DATA:-

It is defined as the data collected earlier for a purpose other than one currently being pursued.

As a researcher I have scanned lot of sources to get an access to secondary data which have
formed a reference base to compare the research findings. Secondary data in this study has
provided an insight and forms an outline for the core objectives established.

The various sources of secondary data used for this study are:-

 News papers.
 Magazines.
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 Text books.
 Marketing reports of the company.
 Internet.

PRIMARY DATA:-

The primary data has been collected simultaneously along with secondary data for
meeting the established objectives to provide the solution for the problem identified in
this study.

The methods that have been used to collect the primary data are:-

 Questionnaire.
 Personal Interview.

RESEARCH MEASURING TOOLS & TECHNIQUES

The primary tool for the data collection used in this study is the respondent’s response to the
questionnaire given to them. The various research measuring tools used are:-

 Questionnaire.
 Personal interview.
 Tables.
 Percentages.
 Pie-charts.
 Bar-charts.
 Column charts.

SAMPLING DESIGN

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An integral component of a research design is the sampling plan. Especially it addresses three
questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to
select them (sampling Procedure). Making the census study of the entire universe will be
impossible on the account of limitations of time and money. Hence sampling becomes
inevitable. A sample is only his portion of population. Properly done, sampling produces
representative data of the entire population.

SAMPLE SIZE:-

i. Through questionnaire – 150 respondents.

ii. Through personal interview – 27 respondents.

SAMPLING TOOL:-

Questionnaire was used as a main tool for the collection of data, mainly because it gives the
chance for timely feedback from respondents. Moreover respondents feel free to disclose all
necessary detail while filling up a questionnaire. Respondents seeking any clarification can
easily be sorted out through tool.

Sampling Tools Respondents Number

Questionnaire Customers 150
Personal Interview Customers 27
Total 177
Table – 1.7

FIELD WORK:-

The study was conducted in Lucknow

 The questionnaires were given to the respondents to fill in order to get their feedback.
 Questions were read out to the respondents and the answers were noted.

LIMITATIONS OF THE STUDY:-

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The main purpose of this study is get idea about the preference of the customers towards
various Coca-Cola products. But there are certain factors which affects this study they are as
follow:

 Since the sampling procedure was judgmental, the sample selected may not be true
representative of the population.

 Economic and market conditions are very unpredictable (Present and future).

 The project duration is limited to 4 weeks so it limits the area of study.

 The study was confined to New Delhi, Noida and Greater Noida due to which the
result cannot be applied universally.

DATA ANALYSIS
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Respondents based on age group

180
160
Number of respondents

140
120
100
80
60
40
20
0
Below 20 20-30 30-40 40-50 above 50
Number of respondents 10 159 6 1 1

Fig 2.4

Respondents based on gender

37%
Male
Female
63%

Fig 2.5

AGE GROUP & GENDER:

From Fig 2.4, we can comprehend that 90% of total respondents belong to the age group of
20-30. This is because most of the consumers that prefer or consume Coca-Cola products
belong to this age group. About 6% belong to age group below 20 and 3% belong to age

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group of [Link] Fig 2.5, we come to know that the gender ratio of the total respondents
is almost 2:1 (male: female).

Frequency of soft drink consumption

50
45
40
35
30
25
Series1
20
15
10
5
0
Once a week Twice a week Thrice a week Everyday Rarely

Fig 2.6

Weekly expenditure of coca-

cola products (INR)
4% 3%
12%
50-100
100-150
150-200
81%
Above 200

Fig 2.7

SOFT DRINK CONSUMPTION & EXPENDITURE:

From Fig 2.6, we interpret that about 48% of the total respondents consume soft drinks rarely
or once a week. About 35% respondents consume soft drinks twice or thrice a week and only
18% consumes soft drinks every day.

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From Fig 2.7, we interpret that about 81% of the respondents spend only Rs. 50-100 a week
on Coca-Cola products, which is very low as compared to the global scenario. This creates a
potential growth market for Coca-Cola India. About 12% spends from 100-150 a week & 7%
spend above 150.

Purchasing Portal Preference

120

100

80

60

40

20

0
Vendor Pubs &
Supermarkets Retails Multiplexes
Machines Restaurant
Series1 26 103 8 20 20

Fig 2.8

PURCHASING PORTAL PREFERENCE:

From the above data, we have ascertained that preferred portal for purchase of Coca-Cola
products is the retail shops i.e. 58%. This is probably because not all communities in India
have supermarkets and other purchasing channels present nearby, whereas, we can find retail
shops in every corner.19% prefer to purchase from Supermarkets and Vendor machines. 23%
prefer to purchase from Pubs, Restaurants and Multiplexes.

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Occasions/Reasons for consumption

Just like that

Parties

Cinemas

Picnics

Festivals

0 20 40 60 80 100 120
Festivals Picnics Cinemas Parties Just like that
Series1 3 4 26 40 104

Number of respondents

Fig 2.9

REASON FOR CONSUMPTION:

From this graph, we infer that there is no specific occasion why people purchase Coca-Cola
products. Although some of the advertising campaigns target special occasion or festivals.
From Fig 2.9 it is concluded that 59% respondents purchase Coca-Cola without any specific
reason. About 23% purchase for the purpose of parties, 15% purchase while watching movies
in the cinemas and only about 4% purchase during festivals and for picnic purposes.

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Soft drink preference
80

70

60
Number of responses

50

40

30

20

10

0
Other Other
Coca-Cola Pepsi products of products of Other drinks
Coca-Cola Pepsi
Series1 72 34 52 7 12

Fig 2.10

SOFT DRINK PREFERENCE:

From the above graph we interpret that about 70% of the respondents, prefer consuming
Coca-Cola product over Pepsi and other drinks. This clearly states why Coca-Cola is market
leader with almost 60% of market share. 23% prefer Pepsi Products and only 75 prefer to
drinks.

Opnion About Coca-Cola Products

Bad

Below Satisfactory

Satisfactory

Good

Excellent

0 20 40 60 80 100 120 140

NO. OF RESPONDENTS

Fig 2.11
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Products expected by consumers from
Coca-Cola
Fizzy drinks Fruit drinks Energy drinks Alcoholic drinks

14%
20%

26%
40%

Fig 2.12

OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS

EXPECTED BY CONSUMERS:
From Fig 2.11, we infer that though the respondents are more than satisfied by the Coca-Cola
product range they would still like the company to introduce new drinks. From Fig 2.12, we
conclude that about 40% would like to see a new fruit drink being added to the product
basket, 26% want energy drinks, 20% alcoholic drinks and only 14% want another fizzy
drink. Majority of the people wanting to see a fruit drink is mainly because people are more
health conscious now and want to manage their calorie intake.

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Quantity preference
90

80

70
Number of responses

60

50

40

30

20

10

0
200-250 ml 500 ml Pet
300 ml Can 1 litre 2 litre
Glass bottle bottle
Series1 47 33 83 5 9

Fig 2.13

QUANTITY PREFERENCE:
From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET bottle of
Coca-Cola Products. About 27% prefer to purchase glass bottles, 19% prefer Can of 300ml
and only 8% prefer 1 & 2 litre bottles of Coca-Cola.

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Branding

Pepsi products

Coca-Cola products

0 20 40 60 80 100 120
Coca-Cola products Pepsi products
Series1 109 68

NO. OF RESPONDENTS

Fig 2.14

Pricing
120
100
80
60
Series1
40
20
0
Coca-Cola products Pepsi products

Fig 2.15

BRANDING & PRICING:

From Fig 2.14, it is concluded that respondents find Coca-Cola products better than that of
Pepsi products. About 62% respondents said that they find Coca-cola products better than
Pepsi and only 38% supported Pepsi products.

From Fig 2.15, we infer that about 62% of the respondent considers the pricing of Coca-Cola
much more reliable than that of Pepsi. About 38% respondents think that Pepsi have better
pricing than that of Coca-Cola.

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Quality
140
120
100
80
60 Series1

40
20
0
Coca-Cola products Pepsi products

Fig 2.16

TASTE

Pepsi products

Coca-Cola products

0 20 40 60 80 100 120 140

Coca-Cola products Pepsi products
Series1 130 47

NO. OF RESPONDENTS

Fig 2.17

QUALITY & TASTE:

From Fig 2.16 & 2.17, it’s clear that Coca-Cola products have better taste and quality than
that of Pepsi. About 73% respondents consider that Coca-Cola products have very good
quality and taste. 27% respondents consider Pepsi products have better taste and quality.

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Availability

Pepsi products

Coca-Cola products

85 86 87 88 89 90 91
Coca-Cola products Pepsi products
Series1 90 87

Number of respondents

Fig 2.18

Satisfaction

Pepsi products

Series1

Coca-Cola products

0 20 40 60 80 100 120 140

Fig 2.19

AVAILABILITY & SATISFACTION:

From Fig 2.18, it’s clear that there is slight difference between the availability of products of
Coca-Cola and Pepsi. About 51% respondents think that Coca-Cola products are much easily
available in the market.49% consider that availability of Pepsi products is more in the market.

About 70% of respondents are satisfied with the Coca-Cola products while as 30%
respondents are satisfied with the Pepsi products as shown in Fig 2.19.

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SUGGESTIONS AND CONCLUSION

SUGGESTIONS

The suggestions made in this section are based on the market study conducted
as part of “Coca-Cola India”. The suggestions are arranged in order of priority,
highest first.

 Perform a detail demand survey at regular interval to know about the

unique needs and requirements of the customer.

 The company should make hindrance free arrangement for its

customers/retailers to make any feedback or suggestions as and when
they feel.

 The company should focus to bring some more flavors like health drinks
and other low-calorie offerings. Coca-Cola India can also introduce
some fruit based drinks, as it has already entered the energy drink arena
with “Burn”.

 Coca-Cola’s distribution channel is mostly through retail. Whereas the

competitors also concentrates more on the multiplexes, pubs and
restaurants. Coca-Cola should try to increase their distribution in these
areas.

 The company must keep a watch on its primary competitors in market in

order to be able to compete with them.

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 The company should use new attractive system of word of mouth
advertisement to keep alive the general awareness in the whole market
as a whole.

 The company should be always in a position to receive continuous

feedback and suggestions from its customers/ consumers as well as from
the market and try to solve it without any delay to establish its own good
credibility.

 A strong watch should be kept on distributors so that the goodwill of the

BRAND doesn’t get affected.

CONCLUSION

Though there were certain limitations in the study that was conducted. The sample allowed
for some conclusions to be drawn on the basis of analysis that was done on the data collected.

The data has clearly indicated that Coca-Cola products are more popular than the products
of Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and
AVAILABILITY, thus it should focus on good taste so that it can capture the major part of
the market. The study also indicated that the consumers are satisfied with the Coca-Cola
products and purchase them without any specific occasions.

In today’s scenario, customer is the king because he has got various choices around him. If
you are not capable of providing him the desired result he will definitely switch over to the
other provider. Therefore to survive in this cutthroat competition, you need to be the best.
Customer is no more loyal in today’s scenario, so you need to be always on your toes.

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BIBLIOGRAPHY

BOOKS:

 Marketing Management – Kotler Philip.

 Research Methodology – Kothari.

WEBSITES:

 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]
 [Link]

OTHERS

 Annual report of Coca-Cola 2008.

 Annual report of Coca-Cola 2009.

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QUESTIONNAIRE

 NAME:
..............................................................................
 GENDER:
a) Male b) Female

 Do you drink Soft drinks?

a) Yes
b) No

 How often do you have soft drinks per week?

a) Once a week
b) Twice a week
c) Thrice a week
d) Everyday
e) Rarely

 What drink comes to your mind when you think of soft drinks?
a) Coca-Cola
b) Pepsi
c) Other products of Coca-Cola
d) Other products of Pepsi
e) Other drinks

 What quantity do you usually prefer to buy?

a) 200-250 ml Glass bottle
b) 300 ml Can
c) 500 ml Pet bottle
d) 1 litre
e) 2 litre

 What do you feel about Coca-Cola product range?

a) Excellent
b) Good
c) Satisfactory
d) Below Satisfactory
e) Bad

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 What occasions do you prefer to buy Coca-Cola products?
a) Festivals
b) Picnics
c) Parties
d) Cinemas
e) Just like that

 What is your most preferred channel for purchasing Coca-Cola products?

a) Super markets
b) Retails
c) Vendor Machines
d) Pubs & Restaurants
e) Multiplexes

 How much do you spend on Coca-Cola products per week?

a) 50-100
b) 100-150
c) 150-200
d) Above 200

 Put (X) mark in which ever you feel is appropriate?

Parameters / Product Coca-Cola Products Pepsi Products
1) Branding
2) Quality
3) Price
4) Taste
5) Availability
6) Satisfaction

 What kind of products do you want Coca-Cola to introduce in the future?

a) Fizzy Drinks
b) Fruit Drinks
c) Energy Drinks
d) Alcoholic Drinks

...............................................................................................................

Thank you!

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