PROJECT

REPORT
ON

SUBMITTED TO:-

SUBMITTED BY:-

Mrs. SHIPRA KHANNA

JASMEEN &
1

(Assistant Professor)

AVTAR

CHITKARA UNIVERSITY

TABLE OF CONTENTS
S.NO

TOPICS

PAGES

Introduction

1-3

History

4-7

Organizational Structure

8 - 10

SWOT Analysis

11 15

Financial Status of The Firm

16 - 17

Marketing Strategy Of The Company

18 - 23

Main Competitors Of The Company And There Strategies

24 33

Suggestions And Recommendations

3435

Summary

36

10

References

37

ACKNOWLEDGEMENT

This project report could not have been written without Mrs. Shipra khanna who encouraged
and challenged me through my academic program. She never accepted less than my best
efforts. Thank you.
What is collected in this project are materials that I found in articles or in books. I make no
claim to be comprehensive.
A special thanks to the Authors mentioned in the refrences page. Without you, this guidebook
would
Have taken years off my life (which I dont have many to spare).
Most especially my friends, otherwise i wont be able to express what
I owe them for their encouragement me to complete this project

And especially to God, who made all things possible.

INTRODUCTON
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 companys marketing process.
-Palmer (2000)

INTRODUCTION TO COCA-COLA
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the worlds 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 Companys beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and notready- todrink 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
5

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 worlds 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.

HISTORY
Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass.
Early growth was impressive, but it was only when a strong bottling system developed that
Coca-Cola became the world-famous brand it is today.
1899 The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business around
bottling Coca-Cola. In a meeting with Candler, Benjamin

F. Thomas and Joseph

B.

Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States
(specifically excluding vicksburg) -- for the sum of one dollar. A third Chattanooga lawyer,
7

John T. Lupton, soon joined their venture.

Birth of the contour bottle (1916)

Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with
imitators. A group representing the Company and bottlers asked glass manufacturers to offer
ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute,
Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle
became one of the few packages ever granted trademark status by the U.S. Patent Office.
Today, it's one of the most recognized icons in the world - even in the dark!

Post-war growth(1940s)
During the war, 64 bottling plants were set up around the world to supply the troops. This
followed an urgent request for bottling equipment and materials from General Eisenhower's
base in North Africa. Many of these war-time plants were later converted to civilian use,
permanently enlarging the bottling system and accelerating the growth of the Company's
worldwide.1950s Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type -- the
traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce
versions. Cans were also introduced, becoming generally available in 1960.

New brands introduced(1960s)

Following Fanta in the 1950s, Sprite, Minute Maid, Fresca and TaB joined brand
Coca- Cola in the 1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s
brought diet Coke and Cherry Coke, followed by POWERADE and DASANI in the
1990s. Today hundreds of other brands are offered to meet consumer preferences in local
markets around the world.

Consolidation to serve customers(1970s and 80s)

As technology led to a global economy, the retailers who sold Coca-Cola merged and
evolved into international mega-chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better serve giant
international customers. The Company encouraged and invested in a number of bottler
consolidations to assure that its largest bottling partners would have capacity to lead the
system in working with global retailers.
9

10

21st Century

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as people seek brands that honor local identity and
the distinctiveness of local markets. As was true a century ago, strong locally based
relationships between Coca-Cola bottlers, customers and communities are the foundation on
which the entire business grows.

11

ORGANIZATION STRUCTURE OF COCA COLA IN INDIA

12

13

14

SWOT Analysis of Coca Cola

STRENGTH

WEAKNESS

OPPORTUNITIES

THREAT

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
Countrys remotest areas.

STRONG BRAND IMAGE

Coke has its history of about more than a century and this prolonged sustenance has definitely
added 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.
15

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 companys 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

16

In India, there exists a major controversy concerning pesticides and other harmful chemicals in
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 Companys 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
17

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 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
18

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 th
companys products.

19

Financial status of the company

COCA COLA - RATIO ANALYSIS
200
$ (in

Income Statement
Revenue
Cost of Goods
Sold Interest
Expense Tax
Expense
Income from Cont Operations
Net Income
Balance Sheet
Cash

200
Percent

millions
24,088
)
8,164
220
1,498
5,080 100.0
5,080 %
2,440
150
2,704
1,641
8,441
6,783
6,903
7,668
29,963
8,890
13,043
16,920

33.9
%
0.9%
6.2%
21.1
%
21.1
%
20

$ (in

Percent

millions
23,104
)
8,195
240
1,818
4,872 100.0
4,872 %
4,701
66
2,281
1,424
10,250
6,922
5,786
6,469
29,427
9,836
13,072
16,355

2006
$ (in
millions
21,962
)

4,847

35.5
%
1.0%

2,171
1,420

7.9%
21.1
%
21.1
%

31,327

Short Term
Investments
Accounts
Receivable
Inventory
Current Assets

5,957
2,912
220

8.1%
0.5%

48.25
2.16

9.0%

6,423
2,679
240

5,968
16.0
%

40.31
2.04

0.2%

Product Demands:

Growth Ratios
Sales
Growth
Activity Ratios
Receivable

4.3

5.2

9.7

10.4

5.3

5.8

Turnover
Profit Ratios
Profit Margin

21.1

21.1

Return on Assets

Return on Equity
Liquidity Ratios
Current Ratio

17.1

16.0

Solvency Ratios
Debt to Total Assets
Times Interest Earned

0.95

1.04

0.4

0.4

(Accrual) Times Interest

21

Marketing Strategies
Our local marketing strategy enables Coke to listen to all the voices around the world asking for
beverages that span the entire spectrum of tastes and occasions. What people want in a beverage
is a reflection of who they are, where they live, how they work and play, and how they relax and
recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a
woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea
buying bottled water after a run together, we're there for you. We are determined not only to
make great drinks, but also to contribute to communities around the world through our
22

commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor,
consistently shaping our business decisions to improve the quality of life in the communities in
which we do business. It's a special thing to have billions of friends around the world, and we
never forget it.

STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS

23

To increase the price is the least thing, which Coke can adopt. There are so many ways through
which Coke can increase the profits. Some major ways are as follows.
Volume can be increased
Interest level of consumers
To take part in energetic festivals

How to increase the volume of consumers?

24

Coke can increase the volume by expanding the industry of coke. Through advertisements,
offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavors.
For example Coke is increasing the number of flavors in Fanta, this is one of the product of
coke. Through offering different flavors Coke can increase the Level of consumers and through
this profits can be gained.
How to take part in energetic festivals?
Coke is already taking part in the festival like Basant since last 3 years. Coke offers different
attractive things in their festival and through this Coke gained high profit and consumption of
coke increased on these occasions.
And this year in this year 2002 people were anxiously waiting that what interesting thing coke
is going to offer.

Our Mission:
Our mission declares our purpose as a company. It serves as the standard against
which we weight our actions and decisions. It is the foundation of our Manifesto.
(1) To refresh the world in body, mind and spirit.
(2) To inspire moments of optimism through our brands and our actions.
25

(3) To create value and make a difference everywhere we engage

Our Vision:
Our vision guides every aspect of our business by describing what we need to
accomplish in order to continue achieving sustainable growth.
People: Being a great place to work where people are inspired to be the best they can be.
Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and
satisfy people's desires and needs.
Partners: Nurturing a winning network of customers and suppliers, together we create
mutual,

enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximizing long-term return to shareowners while being mindful of our
overall responsibilities.

26

Improved Mission Statement:

(1) At Coca Cola we're committed to achieving business and financial success while
leaving a

positive imprint on society delivering what we call Performance with

Purpose.
(2) Our mission is to be the world's premier consumer Products Company focused
on convenient foods and beverages. We seek to produce financial rewards to
in8vestors as we provide opportunities for growth and enrichment to our employees,
our business partners and the communities in which we operate. And in everything we
do, we strive for honesty, fairness and integrity.

Improved Vision Statement:

(1) Coca cola Co responsibility is to continually improve all aspects of the world in
which we operate environment, social, economic creating a better tomorrow than
today."
(2) Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build shareholder
value by making Coca cola Co a truly sustainable company.
27

PROMISE OF COKE
The basic proposition of our business is simple, solid and timeless. When we bring refreshment,
value, joy and fun to our stakeholders, then we successfully nurture and protect our brands,
particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide
consistently attractive returns to the owners of our business.

TARGET MARKET
Cokes commercials basically based on young generations, So, the young generation is the
target market of Coke because they want to represent Coke with the youth and energy but they
also consider about the old people they take then as a co-target market.

MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where the
demands is higher then the other areas. There are so many people who take this drink daily and
those people who take weekly and those who take less often are always there as well. So, their
basic segments are those people who take this drink regularly

28

Market Competitors compititors and their strategies

Cokes major competitor is PEPSI and there is no hesitation to say this because every one
knows that and all the other cold drinks and water, coffee, tea is the competitors.

29

Threats from competitors

Threats are well planned. Price is the major threat. When price goes certain beyond the exact
price whether come down or go higher its effects the consumption of soft drink. Because when
the price go higher people go for the substitute of coke i.e. Pepsi. And when price goes down
they think that there is must be some thing wrong in it.
In short it all depends on customers perception.

30

Targets that would like to attain:

Every organization runs on the bases of profit maximization so Coke is also looking for a high
profit margin.
There are three major ways of making money
Over night profit
Windfall profit

Over Night Profits

31

They could be over night profit that is for the number 1 brand for the year. This could be got
my increasing
sales volume

Windfall Profit
Can be windfall profit. They are the extras profit. When the consumption the consumption is on
boom. So,
there is different kind of profits.

Expanding target market

32

In last 2 years Coke has come back in aggressive manner.

Consumer has choice
Attractive brand name
Brand differentiating
Consumer Has Got Choice

Now the consumer has got choice. Because now they know the name of another big brand,
though coke is
the 2nd best name but it can get a better position after some time

Attractive Brand Name

33

Now the consumers know the Name of Coke, because Coke is the name, which is the most
popular after the word ok. So people can better differentiate brands with each other.

Brand Differentiation

34

Now different companies have got different brand names. So, people can distinguish between
brands. Two major brands coke and Pepsi also have brand names.

Coca Colas Brand

Coca cola is US brand. Because they believe in the togetherness, being people together and
friends are being together. Coca Cola strongly believes that Pakistani temperament is US not
ME

Pepsis Brand

35

Pepsis brand is basically is basically ME branded. They use the temperament of ME. In
contrast to Coke they believe on individual struggle.

THREATS AND OPPORTUNITIES FOR PRICE

Opportunities
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget
After paying all these taxes coke has to pay electricity charges. We have to spend on
distributions. After paying all these expenses Cokes margin squeezed and consumers have to
pay for increasing tariffs. These are the opportunities through which we can increase the price
and can get profits.

Threats
There are much more threats in increasing prices. Because same problem of substitute. If Coke
increase the price lets say 1 rupee. Then people definitely wont go for coke. They have the best
substitute of Coke that is Pepsi. So these are the threats in increasing prices. Coke will lose the
margin of its profit and can face loss.
36

MARKET POSITIONING

37

Product Range
The total range of Coca Cola company in Pakistan includes:
Coke.
Sprite.
Fanta.
Diet Coke.
And company offers their products in different bottle sizes these includes:
38

 SSRB

(standers size returnable bottle)

LRB

(litter returnable bottle)

NRB

(no return bottle) or disposable bottle

PET 1.5

(1.5 litter plastic bottle)

CANS

(tin pack 330 ml)

Packing
Coca cola products are available in different packing
24 regular bottle shell
6 bottle pack for 1.5 pets
12 bottles in a pack for disposable bottle
24 cans in one pack

Suggestions
After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is
working for them and the product is gaining popularity among youth day by day.
The company has to increase its quality more and also has to introduce more verities of
drinks in to the market to increase its market share.
It has to change the advertisements in a manner that add the soft drinks as a part of food.
The Pepsi has some more scope to increase its market share and it has to strive for that.

39

 Company has to concentrate on the fruit based drinks and add some more fruit based drinks
to the product line.
The Pepsi Company has to increase the No. of Visi Coolers in the market.
The retailers are using the Pepsi Visi Coolers for other drinks also, they have to control that.
For that purpose the company has to recruit some people.
The dealers should provide the sufficient information to the retailers about the products and
the new offers to the retailers provided by the company.
The dealers should be provided the credit up to some limits by the company.
The Advertisement should be given as a whole, that will bring the awareness about the
products and reduce the advertisement cost of the company also.

Recommendations
After completing our project we have concluded some recommendation for the coca cola
company, which are following.

40

 Coca Cola Company should try to emphasis more on providing their infrastructure in the
market to facilitate their customers.
According to the survey, conducted by the international firm Pakistani people like little
bit sweeter cola drink. So for this coca cola company should produce their product
according to the local demand.
Marketing team should try to increase the availability of Coke in rural areas.
They should also focus the old people
Now young generation has a trend to drink a coke 2 regular bottles at same time, so
providing more satisfaction to them company should introduce liter disposable bottle.

Summary
Coca-Cola, the product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the worlds 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. Coca41

Cola was first introduced by John Syth Pemberton, a pharmacist, in the year 1886 in Atlanta,
Georgia when he concocted caramel-colored syrup in a three-legged brass kettle in his
backyard. He first distributed the product by carrying it in a jug down the street to Jacobs
Pharmacy and customers bought the drink for five cents at the soda fountain. Carbonated
water was teamed with the new syrup, whether by accident or otherwise, producing a drink
that was proclaimed delicious and refreshing, a theme that continues to echo today wherever
Coca-Cola is enjoyed. Coca-Cola originated as a soda fountain beverage in 1886 selling
for five cents a glass. Early growth was impressive, but it was only when a strong bottling
system developed that Coca-Cola became the world-famous brand it is today. Coca- Cola was
the leading soft drink brand in India until 1977, when it left rather than reveal its formula
to the Government and reduce its equity stake as required under the Foreign Regulation Act
(FERA) which governed the operations of foreign companies in India. In the new liberalized
and deregulated environment in 1993, Coca-Cola made its re-entry into India through its
100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola Company.
Minute Maid Pulpy Orange, introduced into India, by the Coca-Cola Company. A consumer
sampling involving 5.5 lakh people was conducted in a span of 30 days across major cities in
order to give the product the required marketing push and to recognize the prospective
consumers and their opinion in order to develop and market the product in a better way in the
near future. The methodology used in studying and understanding the perceived views of
consumers towards the product was SAMPLING.

References
BOOKS:
Marketing Management Philip. Kotler
WEBSITES:
42

www.thecoca-colacompany.com

www.news.bbc.co.uk

www.india-server.com

www.magindia.com

www.coca-colaindia.com

www.wikiinvest.com

www.open2.net

OTHERS

Annual report of Coca-Cola 2008.

Annual report of Coca-Cola 2009.

Annual report of Coca-Cola 2010.

43