Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
RESEARCH REPORT
ON
“The effects of sales promotion on sales of
Coca Cola Company”
Submitted in partial fulfillment for the award for degree of
SUBMITTED BY SUBMITTED TO
Anurag Pandey Ms. Vishakha jaiswal
M.B.A. ( 4th SEM) (Assit.Profe.-KIPM-College of Management)
ROLL NO. – 1851770012
I further declare that to the best of my knowledge the project does not
contain any part of any work which has been submitted for any other
project either in this institute or in any other.
Place :
I would like to express my appreciation and gratitude to various persons who have
shared their valuable time and made this project possible through their direct and
indirect cooperation.
KIPM- College of Management, GIDA, Gorakhpur, for his supervision and valuable
guidance.
I am highly thankful to my parents for motivation and support throughout the period of my
GIDA
Table of Content
9. Conclusion 72
11. Limitation 74
12. Bibliography 75
Executive Summary
The Coca-Cola Company (TCCC) has a 120-year history of being a good corporate citizen around the
world. The global scale of the Coca-Cola System, executed in a highly localized manner, makes it
important for us to stimulate economic growth, strengthen communities, and protect and preserve the
In 2005, the newly appointed CEO of TCCC, Neville Isdell, announced our new corporate strategy,
the Manifesto for Growth, which was developed by a worldwide leadership team representing all
geographies and functions within the Company. This strategy integrates the core values of sustainable
development into our overall growth strategy. The Manifesto for Growth envisions TCCC achieving
sustainable growth through five areas -- Profit, People, Portfolio, Partners, and Planet. In addition to
maintaining the profitability and quality of our diverse brands, the Manifesto challenges us to be the
stakeholders and empowering our people. The Manifesto underscores the interdependence of our own
success as a corporation with our success in becoming a change agent and leader for
• Focusing on key initiatives that target sustainable development challenges closest to our
business; and
Coca-Cola’s approach to managing our operations in an ethical, holistic manner is built upon
Citizenship@Coca-Cola describes our core commitments, principles, standards, and policies that
1
guide not
only our own behavior but also those of our major bottling partners.
With so many challenges to achieving economic, social, and environmental sustainability, The Coca-
Cola Company chose to target its efforts on three key initiatives: water, sustainable packaging and
health and wellness. These three challenges were selected because TCCC has unique skills that can
successfully address these problems and they are also issues that are directly relevant to our business.
For water, packaging, and health and wellness we have formulated strategies to tackle these problems
from multiple perspectives, ranging from how we operate internally to how we target our philanthropic
efforts and work with others to leverage our internal expertise and our global presence to address these
issues. Efforts on the ground in all three areas are already underway; and TCCC is committed to
The Coca-Cola Company recognizes that we must constantly stretch ourselves toward more ambitious,
more challenging goals to maintain industry leadership in sustainable development and pursue our
own corporate strategy. To that end, TCCC continuously sets explicit goals in our environmental
performance, particularly around water, energy and climate protection, and packaging. In 2005, our
plants used 1% less total water than we did in 2000, even while our production volume is 35% larger
than it was in 2000. Additionally, TCCC sets goals to improve our impact on the communities where
We measure our performance against these criteria and share highlights of our actions in our annual
Environmental and Citizenship reports. Since publishing our first Environmental Report in 2002, year-over-
year we have achieved higher efficiencies in our System’s water, energy, and solid waste management.
We also know that sustainable development for the Company and for the planet will require innovative
2
science, technology, and management practices. In 2004 TCCC established
Health and Wellness to support a key sustainability initiative, health and wellness. The Institute’s
objective
is to build scientific expertise on the wellness needs of consumers. Institute research informs TCCC’s
understanding of emerging wellness trends and ingredients, and helps us ensure we are involved with
innovative, cutting-edge research in nutrition. 1.3 billion times a day, someone drinks one of our
beverages, which include more than 2400 different products to meet different consumer needs,
including carbonated soft drinks, water, coffee, sports drinks, and fruit juices. Though our
consumers have varied health and wellness needs, TCCC is working to help our consumers make
through the breadth of our current portfolio offerings and research into future possibilities.
The Coca-Cola Company seeks not only to run our business on the principles of sustainability but
also to work with other international leaders to tackle sustainability challenges. TCCC collaborates
with government agencies such as the World Health Organization, the United Nations (UN), United
States Agency for International Development, and local governments, major NGOs such as World
Wildlife Fund, Greenpeace, Conservation International and Business for Social Responsibility, and
other multinationals like Cargill, Dow, McDonald’s, Unilever, and Proctor & Gamble to seek
joined the UN’s Global Compact to demonstrate our commitment to upholding the Compact’s ten
principles on human rights, environmental protection, and economic development consistent with the UN’s
We know that our size and scope give us an opportunity to lead business toward more sustainable
practices; and we’ve worked to effect industry-level changes on global sustainability issues, such as
our commitment to hydrofluorocarbon-free1 refrigeration to meet our climate and greenhouse gas
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goals. Refrigeration equipment is one of the largest drivers of greenhouse gas emissions for the food
and beverage sector; so TCCC has pro-actively addressed this impact by committing to purchasing
HFC-free insulation for all new refrigeration equipment. Beyond our own commitment we also co-
Unilever - “Refrigerants, Naturally,” to lead the transformation of the food and beverage sector
While TCCC is addressing several sustainable development challenges, we are most proud of our signature
contribution,
Water is essential for life; and The Coca-Cola Company is committed to preserving and protecting water
resources community by community where we operate. GWS’s major strengths are its integrated approach
to tackling water issues, the analytical rigor we use to inform our actions, and the top-of-mind awareness
achieved throughout all levels of the Company and the bottling system regarding the importance of water
stewardship. The GWS strategy encompasses a global focus on international leadership to raise awareness
and a local focus on our own operations and the communities around them. Our four-fold strategy involves:
wastewater management
• Helping ensure access to clean drinking water in underserved communities where we operate
• Helping mobilize the international community to drive global awareness and action
Our best-in-class commitment and performance on sustainability and corporate responsibility have
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been recognized by numerous 3rd party reviewers, such as the Dow Jones Sustainability Index for
North America, FTSE4GOOD, the Global 100, GES Investment Services in Northern Europe, and
Innovest. Additionally The Coca-Cola Company was honored as the best Food and Beverage
company in Financial Times’ 2004 Survey of the “World’s Most Respected Companies,” the
Award for Business Excellence in the Community by the Global Business Coalition on HIV/AIDS,
and the Roberts Environmental Center’s top score for Transparency in Sustainability Reporting. This
sustainable development. We are committed to being at the leading edge of environmental, social,
and economic sustainable development, both in how we work now and how we plan for our future.
We still have a long way to go, but The Coca-Cola Company is deeply committed to the journey.
5
Introduction
The packaged fruit drink market in India is currently pegged at Rs 5,000 crore, and it is
witnessing tremendous growth. The per capita consumption of fruit juice-based beverages is
45 litre in Germany, 42.5 litre in Switzerland and 39 litre in the United States, but India's per
capita fruit juice-based beverage consumption is just 20ml. In the carbonated soft drink
segment, the country's per capita consumption is just under three litre (which is also negligible
compared to other countries). This shows the huge opportunity India has in terms of business
if proper strategies are devised to make fruit juices available and affordable. Manpasand
Beverages – whose flagship brand is Mango Sip (which is amongst the top four mango drink
Established by first-generation entrepreneur Dhirendra Singh, the company has carved a niche
The market would be witnessing tremendous growth in the near future, as there are huge
opportunities in the packaged beverage market.These are being fuelled by a rise in the
earlier, the per capita consumption is very low, and this presents the industry players with an
opportunity to tap the huge untapped potential that this segment offers. The industry is expected
to see a growth of 35 to 40 per cent in the foreseeable future. So in the next five years, it is
estimated that the fruit drink industry would be worth around Rs 12,000 crore to Rs 15,000
crore.
6
THE GROWTH DRIVERS FOR THE SECTOR
The major growth drivers are the shift in the consumers' preference for non-carbonated fruit
beverages, thanks to obesity and other health related issues; a change in lifestyle, affordability
and availability. This shift is creating newer opportunities for beverage manufacturers
throughout India.The opening of markets in the Tier-II and III cities of the country is a
contributor to the growth of the sector.It is a fact that packaged fruit juices are at a premium
compared to non-packaged ones. However, that is unlikely to pose a major challenge for the
juice manufacturers, given that the disposable income in the hands of Indian consumers has
almost doubled in the last decade, and consumers are willing to pay a little more for quality
products. Another factor is quality assurance, which is guaranteed by tetra-packs, which have
offered a solution to provide fruit juice that is practically fresh and preservative free.
Juices are healthy only when prepared hygienically. Packaged juices from trusted national and
international brands have usually been prepared and certified to be in accordance with health
They thus underpin the confidence of consumers in considering them to be a healthy and
convenient option, as compared to the fresh juices available at local joints and street stalls.
Manpasand uses aseptic packaging and PET bottles. Its rectangular aseptic packages reduces
the carbon footprint, as it is highly efficient during transportation, storage and distribution.
It uses 33 per cent less space than cans. Moreover, the carton is recyclable.
Apart from this, Manpasand is also working to maintain a positive water balance, and has set
7
The company understands the importance of a green environment and takes various steps to
ensure its positive contribution to it. How is the industry coping up with the reluctant attitude
displayed by local farmers towards fruit farming, the current volatility in prices of fruits and
the lack of storage facilities for fruit-based products? We need to understand the reasons why
farmers are reluctant towards fruit farming. As far as fruit and vegetables are concerned, India
incurs post-harvest losses worth over Rs 2 lakh crore each year, largely owing to the absence
of food processing units, modern cold storage facilities and a callous attitude towards tackling
the grave issue of post-harvest losses. The lack of proper storage facilities is also responsible
for the wastage of substantial quantities of fruit produced in India. It can be prevented to a great
Storage and handling conditions need to be enhanced in the fruit markets, thereby providing
infrastructure facilities to bring down the post-harvest losses and promote increased
productivity.
The prices of fruit have seen a higher degree of volatility than those of grains.
A huge gap between the demand for and the supply of fruit; the inefficiency of the markets in
matching the supply and the demand in different parts of the country; their inherent
perishability and the lack of cold chains are the key reasons for the frequent volatility in the
prices of fruit.
The government should envisage plans and strategies to tackle these problems.
The industry should also take initiatives proactively. impact has the devaluation of the rupee
had on imports
8
INTRODUCTION TO SOFT DRINK MARKET IN INDIA
Soft drinks are become part and parcel of the Indian lifestyle. Be it children, the college
kid or the middle aged Indian soft drinks are enjoyed by one and all in the country. Especially
after the influx of a number of fast food joints in India soft drinks have gained more popularity.
Food like pizzas burgers and French fires go hand in hand with soft drinks. Gone are the days
when a soft drinks was enjoyed to the combat a sunny day. Today soft drinks are enjoyed with
almost every meal that one has outside his/her home. Despite several issues that crept up
regarding the ingredients used behind the manufacturing of soft drinks the market remained
stable. The soft drinks industry in India is categorized on the basis of carbonated and non
carbonated drinks include flavors like cola, lemon and orange and the non carbonated drinks
segment includes mostly mango flavors. The non carbonated segment includes fruits juice and
squashes. The other popular soft drinks brands n India include Fanta, Mirinda, 7Up Sprite
Limca etc. In order to cater to all the segments of the society these top soft drinks brands are
Starting from the age old 300ml glass bottles to the 200ml ones to the recently launched 500ml
and 1 liter plastic bottles soft drinks are available in almost every size desired by the consumer.
The carbonated drinks accounts for almost 80% of the total sales of the soft drinks market in
India. Soft drinks do not only rule the urban markets they have successfully managed to
penetrate the rural areas as well. Rural areas accounts for almost 75% sales of pet bottles
whereas the sales of 300ml bottles are higher in the rural areas. Based on consumption patterns
the soft drinks market in India is classified into two segments. The first is on pfremise which
means the place where the soft drinks was bought and consumed. This includes place like
railway stations, stand alone shops, restaurants and cinemas. The other one being In-House
consumption which means soft drinks purchased and consumed at home. However in India the
former beats the latter hollow. Outdoor consumption accounts for almost 80% of the total sales
9
of soft drinks and indoor consumption accounts for the remaining 20% of the sales of the soft
drinks market. However the soft drinks market in India is still in its nascent stage as compared
to countries like the USA. According to a report published in 2000 the per capita consumption
of soft drinks in Indi was 5 bottles annually as compared to USA whose per capita consumption
per annum stood at 800 bottles. Delhi happens to be the highest soft drinks consuming region
in India.
• Glass Bottles.
• Aluminum Cans.
Non Alcoholic Soft Drinks Beverage Market can be divided in two types :
• Fruit Drinks
• Soft Drinks
• Carbonated
Carbonated :
• Cola
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• Lemon
• Orange
• Cola Products
Cola Products account for nearly 1-62% of the total soft drinks market.
• Thumps Up
• Diet Coke
Non Cola Segment which constitute 36% can be divided types of flavors available :
• Orange
• Cloudy Lime
• Clear Lime
• Mango
The soft drinks industry in India comprises over 100 plants across all states. It provides direct
and indirect employment for over 125.000 employees. It has attracted one of the highest foreign
11
Soft drinks constitute the third largest packaged food segment in India after packaged tea and
packaged biscuits. But the penetration level of soft drinks in India is still low compared with
other developing markets, an indication for further potential for rapid growth. The market size
for soft drinks in India has been estimated at 3.108 US $ million in 2010. With an annual growth
rate of 16.5 percent volume sales of bottled water will increase rapidly within the next five
years. The volume sales of carbonated soft drinks will increase by 8.6 percent per year. The
market size for juice will grow most dynamically within the next five years with an annual
volume sales growth rate of almost 22 percent. Increasing demand for healthy and hygienic
products is expected to fuel the growth of the soft drinks sector. Increasing penetration in rural
India, which is renowned for its consumption of traditional hot beverages such as tea and
coffee, has now taken to cold drinks in a big way. Demand for cold drinks is witnessing growth
at a fast pace especially among younger section of the population.Though India is a tropical
country with long summers, consumption of carbonated beverages stands at roughly 5-6 bottles
per year compared to around 21 bottles in Sri Lanka and as high as 605 bottles in Mexico. Low
advertisement reach and lack of cold storage facilities are hampering the demand for select
12
segments of cold drinks in rural markets. Players are trying to penetrate rural markets by
offering low priced unit sized packaging formats. The organized carbonated drinks market has
a large share of multi-national players. There are also several small and regional players who
Overall cold drinks market was valued at INR 193 billion in 2013-14, of which carbonated soft
drinks accounts for a major share of around 62%. Fruit-based drinks is largely an urban
Packaging is a vital aspect in the beverage market- apart from branding and promotion,
the package also assumes importance from storage, transportation and environment
perspectives. Carbonated soft drinks are mainly sold in returnable glass bottles (RGB),
aluminium cans, and PET bottles. Fruit juice and fruit nectar categories are mainly sold in
liquid packaging cartons Coca Cola India and PepsiCo India together account for around 85%
of the overall carbonated beverage market in India, of which Coca Cola accounts for over
55%followed by PepsiCo with a market share of around 35%. Coca Cola’s ‘Maaza’ leads the
market in the fruit drink category followed by Parle Agro’s ‘Frooti’ At Coca-Cola, we have a
long stable belief that everyone who touches our business should benefit. Coca-Cola in India
provides extensive support for community programmers across the country, with a focus on
education, health & rain water harvesting. All key priorities of the Indian government has
Education:
Coca-Cola in India is supporting community based primary education projects set up to provide
educational opportunities to marginalized children in slum & villages. Till today, the project
have benefited 50 schools, thousands of students, over 500,000 villagers & over10,000 slum
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Environment:
Coca-Cola in India is supporting community based rainwater harvesting projects in rural &
urban areas to help restore water level & promote community education in way to conserve
natural resources. These initiatives have benefited over 10,000 Delhi residents, as well as local
community members, both in areas surrounding Coca-Cola bottling plants & elsewhere.
Healthcare:
Coca-Cola in India is partnering with NGO’s as well as St.John’s Ambulance Brigade (Red
Cross) to provide free medical facilities & information to poor people who can not afford to
visit hospital facilities. These efforts are helping tens of thousands of underprivileged people
in seven states in India, as well as several villages near bottling plants. The company has also
supported a range of other national initiatives, such as a major Polio eradication drive &
drought relief programmers, in addition to support towards the National Cricket Champion for
Coca-Cola
Type Cola
Introduced 1886
Pepsi
Related products
RC Cola
14
JOHNPEMBERTON WAS THE INVENTOR OF COCA COLA
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta,
Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in
his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank
Robinson.
Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who
first scripted "Coca Cola" into the following letters which has become the famous logo of
today.
The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in
Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for
that first year added up to a total of about $50. The funny thing was that it cost John Pemberton
over $70 in expanses, so the first year of sales were a loss. In 1887, Atlanta pharmacist and
businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton
for $2,300. By the late 1890s, Coca Cola was one of America's most popular fountain drinks,
largely due to Candler's aggressive marketing of the product. The Coca Cola Company
Advertising was an important factor in John Pemberton and Asa Candler's success and by the
turn of the century, the drink was sold across the United States and Canada. At the same time,
the company began selling syrup to independent bottling companies licensed to sell the drink.
Coca-Cola was created in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who sold
the syrup mixed with fountain water as a potion for mental and physical disorders.
15
The Formula changed hands three more times before Asa D. Candler added carbonation and
by 2003, Coca-Cola was the world’s largest manufacturer, marketer, and distributor of
Nonalcoholic beverage concentrates and syrups, with more than 400 widely recognized
beverage brands in its portfolio.With the bubbles making the difference, Coca-Cola was
registered as a trademark in 1887 And by 1895, was being sold in every state and territory in
the United States. In 1899, it Franchised its bottling operations in the U.S., growing quickly to
reach 370 franchisees by 1910.Headquartered in Atlanta with divisions and local operations in
over 200 countries Worldwide, Coca-Cola generated more than 70% of its income outside the
INTERNATIONAL EXPANSION
Coke’s first international bottling plants opened in 1906 in Canada, Cuba, and Panama.By the
end of the 1920’s Coca-Cola was bottled in twenty-seven countries throughout the world and
available in fifty-one more. In spite of this reach, volume was low, quality inconsistent, and
effective advertising a challenge with language, culture, and government regulation all serving
as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola wouldn’t “suffer the
stigma of being an intrusive American product,” and instead would use local bottles, caps,
machinery, trucks, and personnel contributed to Coke’s challenges as well with a lack of
standard processes and training degrading quality. Coca-Cola continued working for over 80
years on Woodruff’s goal: to make Coke available wherever and whenever consumers wanted
it, “in arm’s reach of desire.”The Second World War proved to be the stimulus Coca-Cola
needed to build effective capabilities around the world and achieve dominant global market
share. Woodruff’s patriotic commitment “that every man in uniform gets a bottle of Coca-Cola
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As a result of Coke’s status as a military supplier, Coca-Cola was exempt from sugar rationing
and also received government subsidies to build bottling plants around the world to serve
WWII troops.
The 1990’s brought a slowdown in sales growth for the Carbonated Soft Drink (CSD)
Industry in the United States, achieving only 0.2% growth by 2000 (just under 10 billion
Cases) in contrast to the 5-7% annual growth experienced during the 1980’s. While per capita
consumption throughout the world was a fraction of the United States’, major beverage
companies clearly had to look elsewhere for the growth their shareholders demanded. The
looming opportunity for twenty-first century was in the world’s developing markets with their
Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in the World
and estimated its brand value at $70.45 billion. The ranking’s methodology determined a
brand’s valuation on the basis of how much it was likely to earn in the future, distilling the
percentage of revenues that could be credited to the brand, and assessing the brand’s strength
to determine the risk of future earnings forecasts. Considerations included market leadership,
stability, and global reach, incorporating its ability to cross both geographical and cultural
borders.
INDIAN HISTORY
India is home to one of the most ancient cultures in the world dating back over 5000 years. At
the beginning of the twenty-first century, twenty-six different languages were spoken across
India, 30% of the population knew English, and greater than 40% were illiterate. At this time,
17
the nation was in the midst of great transition and the dichotomy between the old India and the
new was stark. Remnants of the caste system existed alongside the world’s top engineering
schools and growing metropolises as the historically agricultural economy shifted into the
services sector. In the process, India had created the world’s largest middle class, second only
to China.
A British colony since 1769 when the East India Company gained control of all European
Trade in the nation, India gained its independence in 1947 under Mahatma Ghandi and his
Principles of non-violence and self-reliance. In the decades that followed, self-reliance was
taken to the extreme as many Indians believed that economic independence was necessary to
be truly independent. As a result, the economy was increasingly regulated and many sectors
were restricted to the public sector. This movement reached its peak in 1977 when the Janta
party government came to power and Coca-Cola was thrown out of the country. In 1991, the
COKE IN INDIA
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
Exchange Regulation Act (FERA) which governed the operations of foreign companies in
India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence
with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling
network. Coke’s acquisition of local popular Indian brands including Thums Up (the most
Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and
distribution assets but also strong consumer preference. This combination of local and global
brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes
18
while also tapping into traditional domestic markets. Leading Indian brands joined the
Company's international family of brands, including Coca-Cola, diet Coke, Sprite and Fanta,
plus the Schweppes product range. In 2000, the company launched the Kinley water brand and
in 2001, Shock energy drink and the powdered concentrate Sunfill hit the market. From 1993
to 2003, Coca-Cola invested more than US$1 billion in India, making it one of the country’s
top international investors. By 2003, Coca-Cola India had won the prestigious Woodruf Cup
from among 22 divisions of the Company based on three broad parameters of volume,
profitability, and quality. Coca-Cola India achieved 39% volume growth in 2002 while the
industry grew 23% nationally and the Company reached break-even profitability in the region
for the first time. Encouraged by its 2002 performance, Coca-Cola India announced plans to
double its capacity at an investment of $125 million (Rs. 750 crore) between September 2002
and March 2003.2 Coca-Cola India produced its beverages with 7,000 local employees at its
products for the company. The complete manufacturing process had a documented quality
control and assurance program including over 400 tests performed throughout the process.The
complexity of the consumer soft drink market demanded a distribution process to Support
700,000 retail outlets serviced by a fleet that includes 10-ton trucks, open-bay three wheelers,
and trademarked tricycles and pushcarts that were used to navigate the narrow alleyways of the
cities. In addition to its own employees, Coke indirectly created employment for another
Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in 1997 as Vice
19
The Indian consumer and in tapping India’s vast rural market potential. Following his
operations and then as Deputy President. Seen as the driving force behind recent successful
forays into packaged drinking water, powdered drinks, and ready-to-serve tea and coffee,
Gupta and his marketing prowess were critical to the continued growth of the Company. India’s
one billion people, growing middle class, and low per capita consumption of soft drinks made
it a highly contested prize in the global CSD market in the early twenty-first century. Ten
percent of the country’s population lived in urban areas or large cities and drank ten bottles of
soda per year while the vast remainder lived in rural areas, villages, and small towns where
annual per capita consumption was less than four bottles. Coke and Pepsi dominated the market
and together had a consolidated market share above 95%. While soft drinks were once
considered products only for the affluent, by 2003 91% of sales were made to the lower, middle
and upper middle classes. Soft drink sales in India grew 76% between 1998 and 2002, from
5,670 million bottles to over 10,000 million and were expected to grow at least 10% per year
through 2012. In spite of this growth, annual per capita consumption was only 6 bottles versus
17 in Pakistan, 73 in Thailand, 173 in the Philippines and 800 in the United States. With its
large population and low consumption, the rural market represented a significant opportunity
for penetration and a critical battleground for market dominance. In 2001, Coca-Cola
recognized that to compete with traditional refreshments including lemon water, green coconut
water, fruit juices, tea, and lassi, competitive pricing was essential. In response, Coke launched
The post-liberalization period in India saw the comeback of cola but Pepsi had already beaten
Coca-Cola to the punch, creatively entering the market in the 1980’s in advance of
liberalization by way of a joint venture. As early as 1985, Pepsi tried to gain entry into India
20
and finally succeeded with the Pepsi Foods Limited Project in 1988, as a JV of PepsiCo, Punjab
government-owned Punjab Agro Industrial Corporation (PAIC), and Voltas India Limited.
Pepsi was marketed and sold as Lehar Pepsi until 1991 when the use of foreign brands was
allowed under the new economic policy and Pepsi ultimately bought out its partners, becoming
a fully-owned subsidiary and ending the JV relationship in 1994.While the joint venture was
only marginally successful in its own right, it allowed Pepsi to gain precious early experience
with the Indian market and also served as an introduction of the Pepsi brand to the Indian
consumer such that it was well-poised to reap the benefits when liberalization came. Though
Coke benefited from Pepsi creating demand and developing the market, Pepsi’s head-start gave
21
Review Of Literature
There are numerous studies on consumer preferences but there are only few studies on
consumer preference towards soft drinks in a study done by Dube (2004), For several of the
largest supermarket product categories, such as carbonated soft drinks, canned soups, ready-
to-eat cereals, and cookies, consumers regularly purchase assortments of products. Within the
category, consumers often purchase multiple products and multiple units of each alternative
selected on a given trip. This multiple discreteness violates the single-unit purchase assumption
of multinomial logit and probit models. The misspecification of such demand models in
response to marketing mix variables. In studying product strategy, these models would lead to
Adriant.Beverly (1998) said that the relative contributions of taste and healthconsiderations
on consumer liking and purchase intent of cola drink. Eight types of commercial cola drinks
were evaluated by 305 adult consumers who also completed a brief questionnaire on food
habits. Data were analyzed using factor analysis. These data suggest that in spite of current
concern about reducing dietary fat, health remainssecondary to taste in the selection of cola
Banumathy and Hemameena (2006), while studying consumer brand preference with respect
to soft drinks, found that after globalization most of the consumers like the international brands
such as Pepsi and coco-cola. Consumers preferred a certain brand or a particular drink mainly
Chia-Hsien Chu, (2000), Taiwan, and This article investigates factors of marketing
communications and consumer characteristics that induce reminder impulse buying behavior.
Study 1 applies the antecedent, process and consequence approach to investigate the essential
22
differences between reminder impulse buying and pure impulse buying. The results of Study 1
reveal that reminder impulse buying significantly differs from pure impulse buying on
motivation, buying goal and decision evaluation. Study 2 further examines how sales
promotion strategy might affect reminder impulse buying, with product appeal and consumer
traits as moderating factors. Both sales promotion strategy and its interaction effects with
product appeal are found to have significant influences on reminder impulse buying.
Specifically, an instant reward promotion promotes stronger reminder impulse buying than a
delayed-reward promotion. Furthermore, both a utilitarian product appeal with a price discount
promotion and a hedonic product appeal with a premium promotion can encourage greater
Gluckman (1986) studied the factors influencing consumption and preference for wine. The
explicit factors identified were, the familiarity with brand name, the price of wine, quality or
the mouth feel of the liquid, taste with regards to its sweetness or dryness and the suitability
for all tastes. Some of the implicit factors identified through extensive questioning were, colour
and
appearance. Most consumers seemed to prefer white wine to red. Packaging, appearance,
colour, ornateness, use of foreign language and graphics were taken as important clues for
quality and price. Consumers preferred French or German made wines to Spanish or
Yugoslavian wines.
Gibson (1998) Sugar-sweetened soft drinks are a special target of many obesity- prevention
strategies, yet critical reviews tend to be more cautious regarding theetiological role of
conclusion on the role of Sugar-sweetened soft drinks in obesity is hampered by the paucity of
good-quality interventions which reliably monitor diet and lifestyle and adequately report
23
effect sizes. We use an alternative microeconomic model of demand for categories that exhibit
the multiple discreteness problems. Recognizing the separation between the time of purchase
and the time of consumption, we model consumers purchasing bundles of goods in anticipation
of a stream of consumption occasions before the next trip. We apply the model to a panel of
where there are numerous brands selling the same products, consumers have an abundant
number of choices and many diverse factors influence their buying behavior. In such a scenario,
this analysis can help in structuring and formulating different strategies for maximizing profit.
This study made an attempt to find the factors affecting consumer's buying behavior, with the
focus on two commonly used products (soaps and chocolates). These factors are based on
certain variables used in the survey. These variables were aimed at identifying the secondary
factors that influenced the choice of soaps/chocolates at the point of purchase or due to other
contextual reasons. The variables include packaging, cost, availability, ingredients, product
popularity, etc., that influence the choice of a brand from among those in the consideration list,
but may not be the most important and primary determinants for short listing brands. The study
is useful to the marketers as they can create various marketing programs that they believe will
Noe (2000) says that the purpose of this paper is the study of factors responsible for brand
many companies to base their strategies almost entirely on building brands. Brand preference
means to compare the different brands and opt for the most preferred brand. This brand
preference, it was concluded that brand persona is the most effective factor that affects the
24
brand preference. This brand person a deals with the personality aspects or the external
attributes of brand, thus it can be said that consumer prefer any brand by looking at the external
preference of soft drinks in rural Tamil Nadu, using Garrets ranking technique, to rank factors
influencing the soft drinks preferred by rural consumer. They found that, the product quality
was ranked as first, followed by retail price. Good quality and availability were the main
Reddy Yella D & Ramesh A (2007), With the rising popularity of packaged fruit drinks, the
cola wars might extend beyond the traditional boundaries as they face fierce competition from
the former. India is the second largest producer of fruits and vegetables in the world. There is
enormous potential to be tapped which will also be advantageous for both domestic and export
markets. The youth market and the middle class provide exciting opportunities for market
penetration and development. It becomes imperative to examine the attitude towards packaged
fruit drinks, as attitude influences buying behavior. The study identifies the key factors that
reflect attitude using factor analysis and examines their managerial implications. The four
factors identified through factor analysis provide an insight into the attitude towards PFDs
There is a need to increase promotional efforts to increase consumption and for market
inhibition for the consumers to drink PFDs, which indicates acceptance and popularity in the
chosen segment.
25
Shanmuga sundaram (1990) studied about soft drink preference in Vellore town of north Arcot
district in Tamil Nadu. The study revealed that, the most preferred soft drink among
respondents as Gold Spot (26%), followed by Limca (24.80%). It was found that taste was the
main factor for preference of particular brand and among the media; television played a vital
tetra pack was most preferred one studied factors influencing consumer preferences for milk.
They were milk quality, convenient availability, supply in quantity desired, flavor, color,
freshness and mode of payment showed higher levels of consumer satisfaction. But packaging
and labeling are not as important for winning over consumers, according to findings published
in the journal Food Quality and Preference, The study involved consumers at different stages
26
Objective Of The Study
In consonance with micro objective to determine the effect of sales promotion on soft drink
product in Gorakhpur city, this research has some objective and they are
1. To study the sales promotion objective of soft drink in Gorakhpur city and try to find
2. Analyze the present sales promotion tactics with the aim of assessing its level of
efficiency.
3. To determine the extent to witch the sales promotion of coca-cola dates with the being
made.
4. To find out the factor that influence sales promotion in the marketing of coca-cola in
Gorakhpur City.
27
Scope Of The Study
The research work covered the entire area of Gorakhpur City. The study is focused on one
particular brands of soft drink commonly available in Gorakhpur This coca-cola brands of
soft drinks. This is as result of time and financial constraints of the researcher to carryout an
28
Company Profile
Coca-Cola sells beverage concentrates and syrups, including fountain syrups, to authorized
bottling partners that combine them with sweeteners and still or carbonated water to produce
the finished beverage for sale to retailers and wholesalers. Coca-Cola also sells finished
In 2013, the company generated 38% of its revenues from the sale of concentrates and syrups
and 62% from the sale of finished beverages. Generally, finished product operations account
for higher net revenues but are less profitable than concentrate and syrup operations. In the
Coca-Cola’s closest rival, PepsiCo, Inc. (PEP), and other companies like Monster Beverage
Corporation (MNST) and Dr Pepper Snapple Group, Inc. (DPS), are part of the consumer
staples sector. You can invest in the consumer staples sector through exchange-traded funds
(or ETFs) like the Consumer Staples Select Sector SPDR ETF (XLP).
Coca-Cola enjoys huge popularity across the world. The company ranked third in Interbrand’s 2014
world’s most valuable brands list, with an estimated brand value of $81.6 billion. Coca-Cola
places sixth in Fortune magazine’s annual ranking of the world’s 50 most admired companies. The
company’s aggressive marketing strategies, innovation, and extensive global reach are the reasons for
29
Enlarge Graph
IMPRESSIVE LINE-UP
Coca-Cola has strong brands across its sparkling and still beverages. Six brands of the company’s
sparkling beverages portfolio generated more than $1 billion in revenue each in 2013, led by the
company’s leading brand, Coca-Cola. The company’s still beverages portfolio includes 11 brands that
generated more than $1 billion in revenue each in 2013. The company has 20 other brands, each
generating revenues between $500 million and $1 billion, with more than half of them in the still
category.
COMPETITOR BRANDS
Coca-Cola’s closest rival, PepsiCo, Inc. (PEP), ranks 24th in Interbrand’s most valuable brands of 2014
list. Dr Pepper Snapple Group, Inc. (DPS), North America’s third-largest soft drinks manufacturer, is a
30
strong brand in the US. But it lacks international presence. National Beverage Corporation (FIZZ), a
manufacturer of flavored beverage products, lacks the popularity of Coca-Cola and PepsiCo products.
Soft drink companies are part of the consumer staples sector. You can invest in the consumer staples
sector through exchange-traded funds (or ETFs) like the Consumer Staples Select Sector SPDR ETF
(XLP). There are other ETFs that invest in soft drink companies too, including the SPDR MSCI World
In the next part of this series, we’ll discuss how Coca-Cola’s advertising strategy plays a key role in its
PRODUCTION
INGREDIENTS
• Carbonated water
• Caffeine
• Phosphoric acid
• Natural flavorings
A typical can of Coca-Cola (12 fl ounces/355 ml) contains 38 grams of sugar (usually in the
form of HFCS), 50 mg of sodium, 0 grams fat, 0 grams potassium, and 140 calories.[54] On
31
The exact formula of Coca-Cola's natural flavorings (but not its other ingredients, which are
listed on the side of the bottle or can) is a trade secret. The original copy of the formula was
held in SunTrust Bank's main vault in Atlanta for 86 years. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in 1919.
On December 8, 2011, the original secret formula was moved from the vault at SunTrust Banks
to a new vault containing the formula which will be on display for visitors to its World of
According to Snopes, a popular myth states that only two executives have access to the formula,
with each executive having only half the formula. However, several sources state that while
Coca-Cola does have a rule restricting access to only two executives, each knows the entire
formula and others, in addition to the prescribed duo, have known the formulation process.
On February 11, 2011, Ira Glass revealed on his PRI radio show, This American Life, that
the secret formula to Coca-Cola had been uncovered in a 1979 newspaper. The formula found
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Use of stimulants in formula
When launched, Coca-Cola's two key ingredients were cocaine and caffeine. The cocaine
was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola
(the "K" in Kola was replaced with a "C" for marketing purposes).
COCA – COCAINE
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant dose; in 1891,
Candler claimed his formula (altered extensively from Pemberton's original) contained only a
tenth of this amount. Coca-Cola once contained an estimated nine milligrams of cocaine per
After 1904, instead of using fresh leaves, Coca-Cola started using "spent" leaves – the
leftovers of the cocaine-extraction process with trace levels of cocaine. Since then, Coca-Cola
uses a cocaine-free coca leaf extract prepared at a Stepan Company plant inMaywood,
New Jersey.
In the United States, the Stepan Company is the only manufacturing plant authorized by the
Federal Government to import and process the coca plant, which it obtains mainly from Peru
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and, to a lesser extent, Bolivia. Besides producing the coca flavoring agent for Coca-Cola, the
Stepan Company extracts cocaine from the coca leaves, which it sells to Mallinckrodt, a St.
Louis, Missouri, pharmaceutical manufacturer that is the only company in the United States
Long after the syrup had ceased to contain any significant amount of cocaine, in the
southeastern U.S., "dope" remained a common colloquialism for Coca-Cola, and "dope-
Kola nuts act as a flavoring and the source of caffeine in Coca-Cola. In Britain, for example,
the ingredient label states "Flavourings (Including Caffeine)." Kola nuts contain about 2.0 to
3.5% caffeine, are of bitter flavor and are commonly used in cola soft drinks. In 1911, the
U.S. government initiated United States v. Forty Barrels and Twenty Kegs of Coca-Cola,
hoping to force Coca-Cola to remove caffeine from its formula. The case was decided in favor
of Coca-Cola. Subsequently, in 1912, the U.S. Pure Food and Drug Act was amended, adding
caffeine to the list of "habit-forming" and "deleterious" substances which must be listed on a
product's label.
Coca-Cola contains 34 mg of caffeine per 12 fluid ounces (9.8 mg per 100 ml).
Cola Company only produces a syrup concentrate, which it sells to bottlers throughout the
world, who hold Coca-Cola franchises for one or more geographical areas. The bottlers produce
the final drink by mixing the syrup with filtered water and sweeteners, and then carbonate it
before putting it in cans and bottles, which the bottlers then sell and distribute to retail stores,
34
The Coca-Cola Company owns minority shares in some of its largest franchises, such as Coca-
Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling Company and Coca-
Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in the
world. Independent bottlers are allowed to sweeten the drink according to local tastes.
The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling
Company".
GEOGRAPHIC SPREAD
Since it announced its intention to begin distribution in Burma in June 2012, Coca-Cola has
been officially available in every country in the world except Cuba and North
Coca-Cola has been a point of legal discussion in the Middle East. In the early 20th century,
a fatwa was created in Egypt to discuss the question of "whether Muslims were permitted to
drink Coca-Cola and Pepsi cola." The fatwa states: "According to the Muslim Hanefite,
Shafi'ite, etc., the rule in Islamic law of forbidding or allowing foods and beverages is based
on the presumption that such things are permitted unless it can be shown that they are forbidden
on the basis of the Qur'an."[78] The Muslim jurists stated that, unless the Qu'ran specifically
was discussed, whereby the same rules apply if a person is unaware of the condition or
BRAND PORTFOLIO
This is a list of variants of Coca-Cola introduced around the world. In addition to the caffeine-
free version of the original, additional fruit flavors have been included over the years. Not
included here are versions of Diet Coke and Coca-Cola Zero; variant versions of those no-
35
Name Launched Discontinued Notes
Caffeine-Free
1983 The caffeine free version of Coca-Cola.
Coca-Cola
New
Was still available in Yap and American Samoa[citation
Coke/"Coca- 1985 2002
needed]
Cola II"
Available in:
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Kingdom and United States. It was reintroduced in
Coca-Cola
Middle of
Black Cherry 2006 Was replaced by Vanilla Coke in June 2007
2007
Vanilla
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Coca-Cola Life 2013 A version with stevia and sugar as sweeteners.
LOGO DESIGN
The Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason Robinson,
in 1885. Robinson came up with the name and chose the logo's distinctive cursive script. The
writing style used, known as Spencerian script, was developed in the mid-19th century and
was the dominant form of formal handwriting in the United States during that period.
Robinson also played a significant role in early Coca-Cola advertising. His promotional
suggestions to Pemberton included giving away thousands of free drink coupons and plastering
"Coke bottle" redirects here. For the song, see Coke Bottle (song).
The Coca-Cola bottle, called the "contour bottle" within the company, was created by bottle
designer Earl R. Dean. In 1915, the Coca-Cola Company launched a competition among its
bottle suppliers to create a new bottle for their beverage that would distinguish it from other
beverage bottles, "a bottle which a person could recognize even if they felt it in the dark, and
so shaped that, even if broken, a person could tell at a glance what it was."
Chapman J. Root, president of the Root Glass Company of Terre Haute, Indiana, turned
the project over to members of his supervisory staff, including company auditor T. Clyde
Edwards, plant superintendent Alexander Samuelsson, and Earl R. Dean, bottle designer and
supervisor of the bottle molding room. Root and his subordinates decided to base the bottle's
design on one of the soda's two ingredients, the coca leaf or the kola nut, but were unaware
of what either ingredient looked like. Dean and Edwards went to the Emeline Fairbanks
Memorial Library and were unable to find any information about coca or kola. Instead, Dean
38
was inspired by a picture of the gourd-shaped cocoa pod in the Encyclopædia Britannica.
Dean made a rough sketch of the pod and returned to the plant to show Root. He explained to
Root how he could transform the shape of the pod into a bottle. Root gave Dean his approval.
Faced with the upcoming scheduled maintenance of the mold-making machinery, over the next
24 hours Dean sketched out a concept drawing which was approved by Root the next morning.
Dean then proceeded to create a bottle mold and produced a small number of bottles before the
Chapman Root approved the prototype bottle and a design patent was issued on the bottle in
November 1915. The prototype never made it to production since its middle diameter was
larger than its base, making it unstable on conveyor belts. Dean resolved this issue by
decreasing the bottle's middle diameter. During the 1916 bottler's convention, Dean's contour
bottle was chosen over other entries and was on the market the same year. By 1920, the contour
bottle became the standard for the Coca-Cola Company. A revised version was also patented
in 1923. Because the Patent Office releases the Patent Gazette on Tuesday, the bottle was
patented on December 25, 1923, and was nicknamed the "Christmas bottle." Today, the contour
Coca-Cola bottle is one of the most recognized packages on the planet..."even in the dark!".
As a reward for his efforts, Dean was offered a choice between a $500 bonus or a lifetime job
at the Root Glass Company. He chose the lifetime job and kept it until theOwens-Illinois
Glass Company bought out the Root Glass Company in the mid-1930s. Dean went on to
One alternative depiction has Raymond Loewy as the inventor of the unique design, but,
while Loewy did serve as a designer of Coke cans and bottles in later years, he was in
the French Army the year the bottle was invented and did not emigrate to the United States
until 1919. Others have attributed inspiration for the design not to the cocoa pod, but to
39
In 1944, Associate Justice Roger J. Traynor of the Supreme Court of California took
In 2007, the company's logo on cans and bottles changed. The cans and bottles retained the red
color and familiar typeface, but the design was simplified, leaving only the logo and a plain
40
STRUCTURE OF THE COMPANY
The Coca Cola Company is global player and approximately 70 percent of its volume and80
percent of its profit come from outside the United State Of America. Although it was perceived
as a standardized brand across the world, Coca Cola had been quietly fine turning its
international marketing strategies to suit the needs of individual national markets. Only the
brands Coca-Cola, Sprite and Fanta were marketed globally. In Latin American and Europe,
where a heavy consumer preferred existed for lemon lime and orange sodas. Coke had
developed a wide range of formulations and flavors to cater the needs of different countries. In
Indonesia Coke had been selling pineapple and banana flavored sodas which had been carefully
developed to suit local preferences. In Japan, Coca-Cola had added a coffee drink called
Georgia and energy healthy drink named Aquarius to its product line. In India, the Coca-Cola
Company acquired the brands Limca, Maaza and Thums Up in 1993.
Marketing mix of any organization consists of 4Ps i.e. Product, price, place and promotion
having its own significance, that varies from one organization to the other. in coca – cola the
information about all the 4 P`s that can be available to me is given here:
PRODUCT: Product mix of coca-cola consists of the various brand packs and flavor given in
the table. Product strategy of the coca-cola is to promote all brands available in the brand packs
and to introduce the product in new flavor is also introduced.
PRICE: Regarding the pricing policy or the price to the distributor is not disclosed to me, but
as done for the different product of the company, company has priced the product same as that
of its major competitor or the market leader.
PLACE: The coca-cola company in India is governed from its corporate office located at
Gurgaon in Haryana. It governs the working of five zones covering whole India these zones
are –north zone , eastern zone , western – zone , southern zone and Andhra Pradesh zone .
These zones are divided in to various. Plant, which govern the area assigned to them. The area
is the various distribution centers called distributors and C&F agents. Then come the retailers
/ customer for the company’s product,
They receive well from distributor and c& f agent. Finally consumer is there, having the
product from the consumer’s shops or delivered to their home, it is more clearly visible through
41
this chart. The coca-cola company, which gave its reach to the mouth of billion of people all
around the world having a wide distribution, network. In India, the pace and Speed at which
coca-cola has widened its business is really amazing. Distribution network is the biggest
strength of the company.
PROMOTION: This past of the marketing is playing a very vital and important role in the
current situation in India. Looking at the competition and promotion and advertising budget of
both the companies coca-cola and Pepsi, one can easily estimate the importance of this. The
promotion mix of coca-cola is divided in to top line promotion and below the line promotion.
Top line promotion includes the promotion designed and done by the company’s corporate
office of Gurgaon and the office of Bombay T.V ads , design of banner , and other p-s done
by the company simultaneously all around India with no difference in designs etc fall in this
category . Below the line promotion includes the promotion schemes, publicity material, POS
display done by the company from zonal, plant, sale manager and area sales manager level. At
the sales manager and area sales manager level the promotion done exclusively for the cities
in their respective area and other POS display.
STRUCTURE OF ORGANISATION
The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in 1893,
followed by "Coke" in 1945. The unique contour bottle, familiar to consumers everywhere,
was granted registration as a trademark by the U.S. Patent and Trademark Office in 1977, an
honor awarded very few packages.
42
NEW COKE
On April 23, 1985, the trade secret "New Coke" formula was released. Today,
products of the Coca Cola Company are consumed at the rate of more than one
billion drinks per day.
In India, Coca-Cola was the leading soft-drink till 1977 when govt. policies
necessitated its departure. Coca-Cola made its return to the country in 1993 and
made significant investments to ensure that the beverage is available to more and
more people, even in the remote and inaccessible parts of the nation.
Coca-Cola returned to India in 1993 and over the past ten years has captured the imagination of the
nation, building strong associations with cricket, the thriving cinema industry, music etc.. Coca-Cola's
advertising campaigns Jo Chaho Ho Jaye and Life ho to Aisi were very popular and had entered the
youth's vocabulary. In 2002, Coca-Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-
rocketed the brand to make it India's favourite soft-drink brand.
43
THE COCA-COLA BUSINESS IN INDIA
While the Coca-Cola Company is a global company with some of the world`s most widely recognized
brand, the Coca Cola business in India, as in each country where it operate, is a local business.
Beverages are produced locally employing Indian citizens, Coke product range & marketing reflect
Indian tastes & lifestyles. They are deeply involved in the life of the local communities in which they
operate.
BOTTLING OPERATIONS
The Coca-Cola Company in India comprises 27 wholly owned company bottling plants & another 17
franchisee owned bottling operation plants. A network of 29 contract-packers also manufactures a
range of products for the company.
Almost all the goods & services required to produce & market Coca- Cola in India are made locally,
sometime with the help of technology & skill from the company. The complexity of the Indian market
is reflected in the distribution fleet, which includes 10- tone trucks, open-bay three-wheelers that can
navigate the narrow alleyways of Indian cities, and trademarked tricycle & pushcarts.
Sales are the cutting ‘edge’ of any business operations it is part of that company. However big
and small that meets the firms customers from home the business is derived. The people, who are
engaged in this activity meet customers and get information about the product or services which are
been sold and provide feedback to the firm.
American Market association has defined sales management as “the blaming direction and
control of selling personal including recruiting, selecting, equipping, assigning, routing supper
visioning, paying and motivating as these tasks apply to personnel sales force”.
44
In the other word “ sales management is used by business to refer to the direction or
supervision of sales men.
Services
The Coca - Cola Company in India supports eight Jagriti (Awakening) Learning Centres (JLC),
managed by India’s well-known organizations, such as CRY, Pratham, Prayas and Literacy India. The
program provides education at the primary level to underprivileged children, as well as computers
and training for teachers. Over 1,800 students per year have benefit from the program.
Working with state and district governments, our company provides support to primary health
centers in areas where our bottlers are located.
In 2002, in partnership with the St. John’s Ambulance Brigade (Associate of Red Cross), we
conducted health camps for those who live in poverty-stricken urban areas to sensitize the community
on pertinent issues such HIV/AIDS, communicable diseases, immunization, hygiene and sanitation,
and reproductive and child health. Free health check-ups and medicine were provided, with over
10,000 people benefiting from the campaign
Several of our bottling plants provide safe drinking water to local villagers, through the
organization of water tankers, bore wells and hand pumps.
The company has funded India’s first national polio eradication drive, as well as a national
drought relief program.
The company sponsors a unique national radio program for women called “The HER Show”
(Health Education and Recreation). The 30-minute weekly program informs and educates housewives
on primary health and education issues.
We sponsored a one-day “Mother & Child Health district Mela” in Ghaziabad. Several hundred women
and children from five villages received free medical check-ups and consultation.
45
ALL INDIA DIVISION COBO’S ARE NOW ISO
14001 CERTIFIED
➢ All 25 of the India Division’s Company-owned bottling plants have gained the
management.
employees and a compliance with applicable regulatory and internal company standards.
46
The Coca-Cola Promise
The coca-cola company exists to benefits and refresh every one it touches. 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 brand , particularly
coca-cola . That is the key to fulfilling our ultimate obligation to provide consistently attractive
More then a billion times every day, thirsty people around the world reach for coca-cola
products for refreshment. They deserve the highest Quality – every time. Our promise to deliver
that quality is the most important promise we make. and it involves a world-wide , yet
distinctively local , network of bottling partner , supplier , distributor and retailers whose
success is paramount to our own. Our investment in local communities in over 200 countries
totals billions of dollars in jobs, facilities, marketing, the purchase of local good and services,
and local business partnership. Always and every where , we pursue continuous innovation in
the products we offer the processes we use to make them, the package we develop and the way
1. The world’s largest spherical coca-cola sign is in Nagoya, Japan a top the dial – Nagoya
building in front of the Nagoya railway station. The sing is a double sphere constructed
from more then 46 tone of steel, more 940meter of neon tubing, and more then, 879 light
bulbs. The outer shape features the coca-cola logo and contour bottle, while the inner
47
2. One of the world’s largest signs for coca-cola is located on a hill called “ELHACHA” in
America, Chile. It is 400 feet wide and 131 feet high and is made from 70,000, 26 ounce
bottles.
3. The first out door paint sign advertising coca-cola still exists. It was painted in 1894 in
Cartersville, Georgia.
4. Coca-cola is one of the world’s most recognizable trademarks recognized in countries that
5. If all the coca-cola ever produced were in 8- ounce bottles. And these bottles were
distributed to each person in the world. There would be 678 bottles or over 42 gallons for
each person.
6. If all the coca-cola ever produced were in 8 – ounce bottles, placed side by side and end
to end to from a lane highway, it would wrap around the earth 82 times.
7. If all the coca-cola ever produced were flowing over Niagara fall at its normal rate of 105
million gallons per second instead of water, the falls would flow for about a day and a
8. the largest representation of the world’s best known package 100 foot tall glass contour
48
ADVERTISEMENT AGENCY
In the year 1991, coca-cola went for more creative advertisements and split t the $ 200million
ad account between Mr. . . CAAN ERICKSON and CREATIVE ARTIST AGENCY (CAA) presently howler.
Chaitra Leo Burnett handles the coke’s account.
INDIA SCENARIO: Managing the ad account earlier with a very creative desirer ting, McCann
Erickson managing the to bring out the coca-cola ad watchers with an Annus Indies” description for
the year 1988 – the year that the Atlanta brand started moving on the thesis that…………. In the once
thunder struck and then choice arm’s reach.
Or getting wall to look red but also about getting the brand’s massage right through the cortex onto
the mind the young India mind.
49
SOFT DRINK MARKET INDIA SCENARIO
India soft drink industry is witnessing a boom time. Its growth rate is around
20% with which such growth rate, volume could reach billion crates with in 10 years.
Three major multinational companies are fighting to grab a major chunk of business from
Indian markets. These three coca-cola, Pepsi, Cadbury. All of these companies have seen
an enormous potential in this country. Consequently, by world standard, Indian per
capita consumption of soft drinks is still very low.
There fore these soft drinks grants feel that fire capita consumption can only grow up.
Soft drink industries has already seen and estimated sale of around 240 million crates
higher then last year’s sale of 204 million in 1998. The Main reason for such a high
growth rate heightened competition between coca-cola and Pepsi, Cadbury, bring a new
entrant is for behind.
India is actually more vivid in taste and preference then any other country market.
Delhi jar instance, account for about 20% of total soft consumption in term of sales.
There are about 4, 80,000 soft drinks retailers in India and their numbers are
increasing day to day. This actually means that there is just one soft drink retailer on a
population of 37,600, which is far below the international standard. Where as
Philippines has one soft drink retail counter over a population of 150 people i.e. 4, 00,000
outlet on a population of 60 million.
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BRAND COMPETITION
There are number of brands of soft drink in the market of various companies. Various brand
competitors of COCA-COLA & PEPSI are as under in the following table-
2. Thums Up 7 Up
4. Limca Pepsi
5. Fanta Miranda
6. Mazza Slice
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REASONS OF BRAND PREFERENCE
There are number of reasons on the basis of which our customers’ select various brand of there
taste. Some of the major factors are as following:
➢ Taste
➢ Brand
➢ Advertisement
➢ Price
➢ Availability
➢ Coldness
On routine survey the result found was that there are two types of soft drink customers in the
market for any type of company.
➢ There are 60% consumers who consume only one brand & are loyal to that very brand. It
may be Coke, Pepsi or a local brand.
➢ 40% consumers are variety branded customers. They drink various brands on various basis.
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Coca Cola India Products :
• Coca Cola
• Diet Coke
• Sprite
• Fanta
• Limca
• Maaza
• Burn
• Kinley Water
• Kinley Soda
Advertisement
53
THUMS UP
Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.
Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the men from the boys.
1L.,1.25L. ,
200 ml, 300 ml, 2L. , 330 ml Various Sizes
500 ml + 100 ml..
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COCA-COLA
COCA-COLA is the most popular & biggest selling soft drink in history, as well as best known product
in the world. Created in Atlanta , COCA-COLA was first offered as a fountain beverages by mixing Coca-
Cola syrup with carbonated water.
COCA-COLA was registered as a trademark in 1887 & by 1895 Coca-Cola was being sold in every state
& territory in the United States.
Today , you can find COCA-COLA in virtually every part of the world. The Coca-Cola Company has
nearly 400 beverages in its portfolio.
SPRITE
Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more than 190 countries.
In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest growing soft
drinks, leading the Clear lime category.
Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth, Sprite has stood
for a straight forward and honest attitude. Its clear crisp
refreshing taste encourages the today's youth to trust their instincts, influence them to be true to who
they are and to obey their thirst.
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Glass PET Can Fountain
1L, 1.25 L,
200 ml, 300 ml. 2 L, , 330 ml Various Sizes
500 ml + 100 ml
LIMCA
Refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice,
of millions of consumers for over 3 decades.
The brand has been displaying healthy volume growths year on year and Limca continues to
be the leading flavour soft drink in the country.
The success formula? The sharp fizz and lemoni bite combined with the single minded
positioning of the brand as the ultimate refresher has continuously strengthened the brand
franchise. Limca energizes refreshes and transforms. Dive into the zingy refreshment of Limca
and walk away a new person.
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FANTA
Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one of the favorite
drinks since 1940's. Fanta entered the Indian market in the year 1993.
Over the years Fanta has occupied a strong market place and is identified as "The Fun Catalyst".
Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and tingling bubbles
that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment.
This positive imagery is associated with happy, cheerful and special times with friends.
1L, 1.25 L,
200 ml, 300 ml, 2 L, 2.25 L, 330 ml Various Sizes
500 ml + 100 ml
MAAZA
It was launched in 1976. Here was a drink that offered the same real taste of fruit juices and was
available throughout the year. In 1993, Maaza was acquired by Coca-Cola India. Maaza currently
dominates the fruit drink. Over the years, brand Maaza has become synonymous with Mango. This
has been the result of such successful campaigns like "Taaza Mango, Maaza Mango" and "Botal mein
Aam, Maaza hain Naam". Consumers regard Maaza as wholesome, natural, fun drink which delivers
the real experience of fruit The current advertising of Maaza positions it as an enabler of fun friendship
moments between moms and kids as moms trust the brand and the kids love its taste. The campaign
builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly
captured in the tagline "Yaari Dosti Taaza Maaza"
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Maaza
Introduced 1976
Maaza, the ‘Bina guthli wala aam’ has Satish Shah in the lead playing a mango expert. In the ad, a
child questions Shah, ‘the mango expert’, for a seedless mango. Shah, in an attempt to look for
seedless mango, dwells into books, travels, but all in vain and in turn, end up learning from the kid
that the ‘Bina guthli wala aam’ is nothing but ‘Maaza’ – the Coca Cola drink. At the end of the ad, he
starts offering his clients two kinds of mangoes with and without seeds.
Not undermining the importance and with full advantage of creativity to Leo Burnett and Coca Cola,
I hope this ad does not, in any way, play a role in undermining importance of mango seeds within
Mangoes can be grown from seeds, though better and commercially are grafted or budded onto
seedling rootstocks. In addition to it, mango seeds indeed have its importance. These are quite
valuable in diarrhea. Seeds collected, dried in the shade and powdered can be used as a medicine.
Mango seeds are considered useful in certain disorders connected with women’s reproductive organs.
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Also, spongy tissue in Alphonso mango - one of the widely known and considered as the ‘king of the
mangoes’ – was traced to its seed, which due to its recalcitrant nature, switches over to germination
mode during fruit ripening phase drawing nutrients from the mesocarp.
In any case, if we don’t have mango seeds, may be we will also not have on earth the
‘mango seed weevil’ (sternochetus mangiferae). It is, though, a pest species, but breeds only in mango
So, we can have an advertisement to promote a commercial product but that must not end up
disadvantaging the use of a product that is needed and is an important part of our ecosystem. The
advertisement also shows kid with no interest in mango but in Maaza, probably something, which
should not be promoted. Maaza can, in no way, replace the real mangoes. Mango is Mango, and is
not Maaza.
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The Indian juice business in estimated to be about 500 million cases annually. After the
Pulpy orange, the company will bring other juice products from Minute Maid, a leading
brand in the global juice market, which is around 16 billion cases, he told newspersons on
Monday.
• Special: Run-up to Budget 2007-08
Initially, the pulp will be imported from Florida and other ingredients from Brazil. In the near
future, the manufacturing will be done at the company's plant in Chitoor district of Andhra
Pradesh. Priced at Rs 25 for 400 ml and Rs 60 per litre, the product will be positioned in
groceries, large format stores, eating and drinking outlets, convenience stores etc. while
targeting the young adults, looking out for naturally refreshing, juice drink.
Answering questions he said `pulpy orange' would not impact Maaza in the juice drink
segment, but would only extend its leadership. On why Kerala, where Coca Cola has been
facing opposition, was not part of the southern market, he said "Our market research has shown
that it is not a potentially sizeable market for juice drinks now". John Ustas, CEO of Hindustan
Coca-Cola Beverages Pvt Ltd, said in the next two months, Minute Maid Pulpy Orange would
be retailed across 25,000 outlets in the three southern states.
Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A ritual
purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very sustenance of
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 part of everyday rituals or as the monsoon which
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Kinley water understands the importance and value of this life giving force. Kinley water thus
promises water that is as pure as it is meant to be. Water you can trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the Coca-Cola Company. That is why we
introduced Kinley with reverse-osmosis along with the latest technology to ensure the purity of our
product. That's why we go through rigorous testing procedures at each and every location where
Kinley is produced.
It is thirst-quenching beverage features a fresh and light lemon-lime taste and lighthearted
attitude. The limca brand was introduced in 1971 and acquired by the coca-cola company in
1993.
MAAZA:
Maaza, launched in 1984 and acquired by the coca-cola company in 1993, is a non carbonated
mango soft drink with a rich, juice & natural mango taste.
THUMPS UP:
In 1993, the Coca-Cola Company acquired this brand, which was originally introduced in 1977.
Its strong and fizzy taste makes it unique carbonated Indian cola.
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BRAND IN INDIAN MARKET
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PROBLEM OF THE COMPANY
India soft drink industry is witnessing a boom time. Its growth rate is around 20% with
which such growth rate, volume could reach billion crates with in 10 years. Three major
multinational companies are fighting to grab a major chunk of business from Indian
markets. These three coca-cola, Pepsi, Cadbury. All of these companies have seen an
enormous potential in this country. Consequently, by world standard, Indian per capita
There fore these soft drinks grants feel that fire capita consumption can only grow up.
Soft drink industries has already seen and estimated sale of around 240 million crates
higher then last year’s sale of 204 million in 1998. The Main reason for such a high
growth rate heightened competition between coca-cola and Pepsi, Cadbury, bring a new
India is actually more vivid in taste and preference then any other country market. Delhi
jar instance, account for about 20% of total soft consumption in term of sales.
There are about 4, 80,000 soft drinks retailers in India and their numbers are increasing
day to day. This actually means that there is just one soft drink retailer on a population of
37,600, which is far below the international standard. Where as Philippines has one soft
drink retail counter over a population of 150 people i.e. 4, 00,000 outlets on a population
of 60 million.
• We will conduct ourselves and business activates with the highest standard of honestly
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• We will recognize the positive contributions that we make individual and team member to
• We will recognize the positives contribution that we makes individual and term member to
• We will encourage a learning environment where the people can constantly grow developed
and contribute.
• We will strive for excellence and seek continue improvement in everything we do.
• We will respect the entire stake holder, including employees and suppliers and instill them
with a person to deliver the highest employees and suppliers and instill them with a passion
For us, Quality is more than just something we taste or see or measure. It shows in our every action.
We relentlessly strive to exceed the world's ever-changing expectations because keeping our Quality
promise in the marketplace is our highest business objective and our enduring obligation.
More than a billion times every day, consumers choose our brand of refreshment because Coca-Cola
is...
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STRATEGY ADOPTED BY COCA-COLA TO INCREASE
The 3 A's is the underlying strategy for meeting company goals to increase no. of consumers. The 3
A's are: -
Availability:
dispensing systems, distribution systems, marketing programs and training and development
programs.
Affordability:
The consumer can afford the Coca-Cola products at a very reasonable price.
Acceptability:
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Making Coca-Cola brand is the beverage choice for any occasion depends on the likings, taste and
preferences of the target audience. Acceptability can also be increased through advertising,
sponsorships, promotions; youth market activities, community programs and other activities.
available about health and nutrition, it can be very difficult to determine what is accurate and what is
not.
The truth is that soft drink and beverages have a place in a healthy lifestyle. A healthy diet incorporates
the basic principles of variety, balance and moderation without sacrificing enjoyment.
• The caffeine and phosphoric acid in soft drinks does not affect bone health
• The amount of sugar and calories in soft drinks is about the same as many fruit juices
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THE COCA-COLA-MISSION
The mission of Coca-Cola Co. is to increase shareowner value over time. The Co.
accomplishes the mission by working with its business partners to deliver satisfaction and
values to its customers, through world wide system of superior brands and services, thus
increasing brand equity on a global basis, create consumer products, services and
communications, customer service and bottling strategies, process and tools in order to
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Organizational Structure
MD
Senior. Sales
Ex./ Sales Ex.
Sales
Promoters.
Sales Manager
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OBJECTIVES OF THE STUDY
➢ To check out the availability of several promotional scheme of coca-cola for the dealers.
➢ To find out the retailers response regarding the various promotion schemes of Coca-Cola and
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Research Methodology
The descriptive research design is used for analyzing and studying the process of Business
Data Sources:
Secondary Data:-
Secondary data is collected from already existing sources in various organization broachers &
records. Secondary data for the study were collected from the magazines, websites & other
previous studies.
To meet the objectives, the study used qualitative research. The descriptive study was done
through review of existing literature that helped in validation and extraction of the important
variables and factors. Data was collected from secondary sources. Secondary sources were
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Findings
• In the city of Varanasi majority of outlets which keep soft drink products were doing
business from 5 to 10 years and out of them most of outlets prefer to keep Coca cola
• The retailers and dealers of Coca-cola want coca-cola to improve its servics and ask for
more schemes.
• In the form of competitive analysis the market share of Pepsi is greater than coke.
Coca-Cola has brought many advantages to society such as offering goods, providing
• But Cola has also brought disadvantages to society such as generating pollution,
creating waste and also creatinghealth and safety risk. Currently, we know that Coca-
Cola are doing business under multiple environment such as market environment, legal
and regulatory environment and also social environment. The market environment help
Coca-Cola improve their sales because everyone in the world knows about Cola
• The legal and regulatory environment helps the Cola Company by banding their
competitors for copyright and winning lawsuits in damages from patent infringement.
The social environment boost the Coca-Cola sales due to crave of the society towards
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Conclusion
There are some conclusions drawn on the basis of survey conducted about brand preference:
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Suggestion And Recommendation
➢ Launching schemes which should act as counter attack schemes for competitors
➢ In order to raise the sales and compete he market the distributor should give some extra
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Limitation
2. There could be biasness on part of consumer & shopkeepers while providing the
information regarding the product & company.
4. For personal understanding the local language was a great hindrance in the beginning for
me.
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Bibliography
THE BASICS OF COCA-COLA:
Books: -
OTHERS BOOKS:-
INTERNET:
• www.cocacola.com
• www.google.com
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