A PROJECT ON CONSUMER BEHAVIOUR

SAINTGITS INSTITUTE OF MANAGEMENT KOTTAYAM

COMPANY: COCA COLA

PHASE 1&2

SUBMITTED BY:
AVINASH N MENON

SUBMITTED TO:
Mr. ELDO G ZACHARIA

SUBMITTED ON:
10-10-2019
 Coca-Cola

Coca cola is a cola (a type of carbonated soft drink, now known as sparkling drinks) sold in stores, restaurants
and vending machines in more than 200 countries. It is produced by the Coca –Cola Company and is often
referred to simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th
century by john Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft drink market throughout the 20th century. The company
actually produces concentrate, which is then sold to various licensed Coca-Cola bottlers throughout the world.
The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and
bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute
and merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such bottlers include
Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and Western Europe
.The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and food service
distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand
name. The most common of these are Thumps Up, Limca which has cover the major market share in India.
However, other exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla coke and
special editions with lemon and with lime and even with coffee in different part of world.
The company, headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware & has operated
a franchised distribution system since 1889,the Company largely produces syrup concentrate, which is then
sold to various bottlers throughout the world who hold exclusive territories. The company owns its anchor
bottler in North America, Coca-Cola Refreshments. The company's stock is listed on the NYSE and is part
of DJIA, the S&P 500 index, the Russell 1000 Index, and the Russell 1000 Growth Stock Index.
How Coca-Cola influence Customer Behavior?

Customer behavior is influenced in psychological and sociological. The international brand Coca-Cola, the
biggest soft drinks and beverage company in the world, is very successful in producing effects on consumer
behaviors. Coca-Cola is one of the most valuable and well-known brand in the word. Although the company is
a manufacture of beverage, it business has penetrated in every walk of life. The brand of Coca-Cola itself is a
symbol of taste. However, although Coca-Cola is a successful brand and its business has covered more than
200 countries in the world, there are still lots of choices for customers in the supermarket shelves of beverage
(Coca-Cola.com, 2016). How Coca-Cola influence Customer Behavior? Beside the effects of famous brand
Coca-Cola has built, the company has continued to deliver its brand value to customers in both psychological
and sociological.

Personal Factors

Personal factors consists of Age and life cycle stage, Occupation, Economic situation, Life Style, and
Personality and self concept.
Age and Life cycle Stage is People changes the goods and services they buy over their lifetimes. Tastes in
food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family
life cycle. Here coca cola cannot target the all age of people to buy their products. They should target consumer
from children, to teenagers and finally the adults. Because nowdays many people concern about their health.
So they will try to avoid any soft drinks that have a lot of sugar and gas. This will affect their health.
The occupation of an individual plays a significant role in influencing his/her buying decision. An individual’s
nature of job has a direct influence on the products and brands he picks for himself/herself

The buying tendency of an individual is directly proportional to his income/earnings per month. How much an
individual brings home decides how much he spends and on which products?
Individuals with high income would buy expensive and premium products as compared to individuals from
middle and lower income group who would spend mostly on necessary items. You would hardly find an
individual from a low income group spending money on designer clothes and watches. He would be more
interested in buying grocery items or products necessary for his survival.
Social Factors

A consumer’s behavior also is influenced by social factors, such as the Groups, Family, Roles and status.
Groups are two or more people who interact to accomplish individual or mutual goals. A person’s behaviors
are influenced by many small groups. Groups that have a direct influence and to which a person belongs are
called membership groups. Some are primary groups includes family, friends, neighbours and coworkers.
Some are secondary groups, which are more formal and have less regular interaction.
These include organizations like religious groups, professional association and trade unions. For groups, it is
much easier for Pepsi to attract them to buy their products. Because a single member of the groups can
influences almost all the group member to follow them. For example, a leader in one group can influenced the
members to buy coca cola as part of the group activities.
Family members can strongly influence buyer behavior. The family is the most important consumer buying
organization society and it has been researched extensively. Marketers are interested in the roles, and influence
of the husband, wife and children on the purchase of different products and services. In this social class, coca
cola need to target the children because they are the people who will consume more cola. But of cause they
will ask their parents to buy the products. So Parents is the customer and Children is the consumer.
Roles and Status is a person belongs to many groups, family, clubs, organizations. The person’s position in
each group can be defined in terms of both role and status.

Psychological Factors

Before customers make their purchase decision, the collect and identify information they needed. Senses
delivered by enterprises result in the selective attention of customers. Customers get information of
appearance, sound, taste, smell, touch of a product, and then choose their preferring one. These senses and
information finally create sensation and perception in the mind of customers. Sensation and perception create
basic acceptation of a brand, and learning and memory enhanced the acceptance. That how the psychological
influences a brand, or a product, create to customers. Thoughts and decisions of customers may be affected and
changed by the psychological factors and finally the whole customer behaviors are different (Iacobucci, 2014).
A typical brand logo of Coca-Cola is pictured as white letters in red background, or red letters in white
background. The strong contrast colors in Coca-Cola brand image convey impressive brand identity to
customers. The color red in white is striking, expressing the brand promotion of passion, active lifestyle. The
taste of Coca-Cola is a distinctive element that make it different from others, especially Pepsi. Tastes of Coca-
Cola carbonated drinks with unique formula to produce are unique for customers. Senses conducted by Coca-
Cola place the impressive brand image of Coca-Cola into the mind of customers.
In addition to the perceived sensation and perception by customers, Coca-Cola promotes its brand in every
walk of life to get repeated exposures. People may be familiar with the Coca-Cola bottle image, that’s the
results of its repeated exposures. In movie, music, and sports, Coca-Cola make its brand connected with
people’s lives. Coca-Cola puts its ads in movies, puts lyrics in bottles, and provides sponsorships for sports
Moreover, Coca-Cola unveils Coca-Cola capsule collection at Berlin Fashion Week. It indicates the brand
would get higher exposures to the world (Coca-Cola.com, 2016). Along with the positive brand spirit
expressed in its exposures, Coca-Cola delivers an active lifestyle and a perception of good life which are
accessible for customers. The perception is enhanced by its repeated exposures over and over again through its
ads in different ads, media, and places. With its recognizable brand image, brand associations are created in the
process of learning and memory

Sociological Factors

While customers decide whether to buy a brand, or a product, and whether the brand worth a repeatedly
purchase, their attitudes and decision making is very important. Attitudes toward a brand are the results of
psychological perception and memory. A significant factor effects customers’ decision making is the social-
cultural differences between the brand and preferences of customers. For example, carbonated drinks of Coca-
Cola may be well welcomed by the young aged from 16 to 28, for children, middle age and old people, the
carbonated drinks are less attractive. For another, for western countries like the USA, the traditional eating
habit of fast food makes people familiar with cola drinks. However, eastern countries, including China, Japan,
Korea, are less accessible for cola drinks. And people have raised their concerns on healthy diet, the carbonated
drink is regarded as high in fats and sugars
So how Coca-Cola maintain its attractiveness facing the socio-cultural differences and changes? The answer is
changes and innovations in brand and products. Not only carbonated drinks, Coca-Cola company provides
product categories including juice, water, teas, coffee. In addition, the low & no calorie, caffeine free, low
sodium categories are provided to customers with special needs. For customers in different age and different
countries and regions, they can choose their preferred product category. But the purchase decision making of
Coca-Cola product categories based on the condition that customers highly accept the Coca-Cola brand. In
fact, as the largest beverage company, Coca-Cola has the largest sales in both sparkling and still beverages
In addition, Coca-Cola continues to innovate its beverages to offer more choices to customers
More choices can weaken the influences from socio-cultural differences. In the category of carbonated soft
drink, Diet Coke and Coke Zero are provided for customers who have higher requirements on the health of diet
and low sugars and calorie but still like the flavor of cola
Moreover, the international ad campaigns of Coca-Cola, such as its recent ads for Rio Olympic Games, are
effective in narrowing the socio-cultural differences within different markets of Coca-Cola