Coca-Cola Final Print

STUDY OF CUSTOMER PREFERENCE OF COCA-COLA
1. INTRODUCTION
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400
beverage brands. It sells beverage concentrates and syrups to bottling and canning operators,
distributors, fountain retailers and fountain wholesalers. The Company’s beverage products
comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-
drink powder products. In addition to this, it also produces and markets sports drinks, tea and
coffee. The Coca- Cola Company began building its global network in the 1920s. Now
operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system
has successfully applied a simple formula on a global scale: “Provide a moment of refreshment
for a small amount of money- a billion times a day.”
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the Company.
This unique worldwide system has made The Coca-Cola Company the world’s premier soft-
drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than
any other consumer product, has brought pleasure to thirsty consumers around the globe. For
more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of
millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by working
with its business partners to deliver satisfaction and value to consumers through a worldwide
system of superior brands and services, thus increasing brand equity on a global basis. They
aim at managing their business well with people who are strongly committed to the Company
values and culture and providing an appropriately controlled environment, to meet business
goals and objectives. The associates of this Company jointly take responsibility to ensure
compliance with the framework of policies and protect the Company’s assets and resources
whilst limiting business risks.
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2. INDUSTRY PROFILE
A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

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

impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space,
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rapid urbanization, and qualified manpower also boosted the growth of the organized retailing
sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in
the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will not
put off having his dinner.
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A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.
BEVERAGES
NON-
ALCOHOLIC
ALCOHOLIC
NON-
CARBONATED
CARBONATED
COLA NON-COLA NON-COLA
The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
 Alcoholic, non-alcoholic and sports beverages.

 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
 Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.
If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
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challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make
the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:
 The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage consumption whether
in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
 The beverage market has still to achieve greater penetration and also a wider spread
of distribution. It is important to look at the entire beverage market, as a big
opportunity, for brand and sales growth in turn to add up to the overall growth of the
food and beverage industry in the economy.
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3. COMPANY PROFILE
MISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company
and serves as the standard against which we weigh our actions and decisions.
 To refresh the world...

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

mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
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 Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
 Productivity: Be a highly effective, lean and fast-moving organization.
WINNING CULTURE:
Our Winning Culture defines the attitudes and behaviours that will be required of us to make
our 2020 Vision a reality
LIVE OUR VALUES:

Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future.
 Collaboration: Leverage collective genius.
 Integrity: Be real.
 Accountability: If it is to be, it's up to me.
 Passion: Committed in heart and mind.
 Diversity: As inclusive as our brands.
 Quality: What we do, we do well.
FOCUS ON THE MARKET:

 Focus on needs of our consumers, customers and franchise partners.
 Get out into the market and listen, observe and learn.
 Possess a world view.
 Focus on execution in the marketplace every day.
 Be insatiably curious.
WORK SMART:
 Act with urgency.
 Remain responsive to change.
 Have the courage to change course when needed.
 Remain constructively discontent.
 Work efficiently.
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ACT LIKE OWNERS:

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

The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a
drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called
Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin
Mariani, a European coca wine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded
by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first
sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a
patent medicine for five cents a glass at soda fountains, which were popular in the United States
at the time due to the belief that carbonated water was good for the health.[9] Pemberton claimed
Coca-Cola cured many diseases, including morphine addiction, dyspepsia, neurasthenia,
headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29
of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the
market. As a Griggs Candler acquired a stake in Pemberton's company in 1887 and
incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an
ongoing addiction to morphine, Pemberton sold the rights a second time to four more
businessmen: J.C. Mayfield, A.O. Murphy, C.O. Mullahy and E.H. Bloodworth. Meanwhile,
Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two
manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his
beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out
to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out
of the business. Candler purchased exclusive rights to the formula from John Pemberton,
Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her
signature on the bill of sale had been forged, and subsequent analysis has indicated John
Pemberton's signature was most likely a forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910 Candler had the earliest records of the company burned, further
obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status
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of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after
the company made minor changes in the sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first
appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the
Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original
bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is
now so familiar. As a Candler was tentative about bottling the drink, but two entrepreneurs
from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the
idea and were so persuasive that Candler signed a contract giving them control of the procedure
for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the
site of the first Coca-Cola bottling company. The loosely termed contract proved to be
problematic for the company for decades to come. Legal matters were not helped by the
decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities,
as an over-the-counter remedy for nausea or mildly upset stomach.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the
drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the taste
of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the
public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and
returned to a variation of the old formula, under the name Coca-Cola Classic on July 10, 1985.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005
they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose,
the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet
product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame
potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins
B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it was
revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab
League boycotted the company in 1968.
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In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-Cola."
The word "Classic" was truncated because "New Coke" was no longer in production,
eliminating the need to differentiate between the two. The formula remained unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce
bottles sold in parts of the south-eastern United States. The change is part of a larger strategy
to rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices
of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke.
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3.2 OBJECTIVES
 The main objective of the project is to analyse and study in efficient way the current
position of Coca- Cola Company.
 To perform PESTLE and SWOT analysis of Coca-Cola globally as well as locally. This
would help us identify areas of potential growth.
 The study was aimed to perform Market Analysis of Coca-Cola Company & find out
different factors effecting the growth of Coca-Cola.
 Another objective of the study was to perform Competitive analysis between Coca-
Cola and its competitors.
 To understand the reasons behind the purchase of Coca-Cola products.
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3.3 COCA-COLA IN INDIA

Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close
down its operation by a socialist government in the drive for self sufficiency. After 16 years of
absence, coca cola returned to India and witnessed a different culture and economic platform.
During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along
with, they also formulated a lemon flavoured drink, LIMCA, and mango flavoured, MAAZA.
In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main
competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be
able to regain their throne in the Indian soft drink market. Pepsi having a 6 year head start
helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola)
to return to India. Pepsi put more focus on the youth of the country in their advertisements but
coca cola tried influencing Indians with the ‘American’ way of life, which turned out to be a
mistake.
Coca-Cola invested heavily in India for the first five years, which got them credit of being one
of the biggest investor in the country; however, their sales figures were not so impressive.
Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever
that reducing their will result in more turnover, hence leading to profit. They launched an
extensive market research in India. They ascertained that in India 3 As must be applied;
Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with
local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached to a conclusion that
competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.
Further, they had different advertising campaigns for different regions of the country. In the
southern part, their strategy was to make Bollywood or Tamil stars to endorse their products.
In various regions they tried portraying coca cola products with different regional food
products. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they
featured the same quote with different regional entities.
Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e.
60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water
Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a
competitive pricing policy, they have regained their throne. With virtually all the goods and
services required to produce and market Coca-Cola being made in India, the business system
of the Company directly employs approximately 6,000 people, and indirectly creates
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employment for more than 125,000 people in related industries through its vast procurement,
supply, and distribution System.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with
another 25 being owned by franchisees. That apart, a network of 21 contract packers
manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the
narrow alleyways of Indian cities – constantly keep our brands available in every nook and
corner of the Country’s remotest areas.
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3.4 PRODUCTS IN INDIA
 COCA-COLA:-
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its
departure. Coca-Cola made its return to the country in 1993 and made significant investments
to ensure that the beverage is available to more and more people, even in remote and
inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of
India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho
Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In
2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky
rocketed the brand to make it India’s favourite soft drink brand.
GLASS PET CAN FOUNTAIN
200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

500ml, 1000ml 2.25L, 500ml, 100ml
 LIMCA:-
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling
drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite
combined with the single minded proposition of the brand as the provider of “Freshness”.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise”
hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original
thirst choice of millions of customers for over 3 decades.
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500ml, 1000ml 2.25L, 500ml, 100ml
 THUMS UP:-
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally
introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is
known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This
brand clearly seeks to separate the men from the boys.

500ml, 1000ml 2.25L, 500ml, 100ml
 SPRITE:-
Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand
in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen
icon.
RGB PET CAN FOUNTAIN
200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES

1250ml, 1500ml,
2000ml, 2250ml
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 FANTA:-
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong
market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta
stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings
but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery
is associated with happy, cheerful and special times with friends.
200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS SIZES

2.25L, 500ml, 100ml
 MINUTE MAID PULPY ORANGE:-
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food
Corporation developed orange juice powder. The company developed a process that eliminated
80% of the water in the orange juice, forming a frozen concentrate that when reconstitute
created orange juice. They branded it Minute Maid a name connoting the convenience and the
ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever
orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to further
extend the leadership of Coca-Cola in India in the juice drink category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.
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 MAAZA:-
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of
mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza
is the mango lover’s first choice.
RGB PET POCKET MAAZA
200ml, 250ml 250ml, 600ml, 1.2L 200ml
 KINLEY:-
The importance of water can never be understated, Particularly in a nation such as India where
water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon
which gives life to the sub-continent. Kinley water comes with the assurance of safety from the
Coca-Cola Company.
Available in PET 500ml and 1000ml.
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3.5 MARKETING MIX OF COCA-COLA
 PRODUCT
The company has the widest portfolio in beverage industry comprising of 3300
products. Beverages are divided into diet category, 100% fruit juices, fruit drinks,
water, energy drinks, tea and coffee etc. As per Nielson’s data, Coca cola is the No.1
brand in sparkling beverages, juice, and retail packaged water in 2010. Coca cola has
its market presence around 200 countries. Coca cola brands in India are Fanta, Maaza,
Limca, sprite, Thumps up, Minute Maid, Nimbu fresh, Nested iced tea etc.
 PRICE
Due to the availability of wide range products, the pricing is done according to the
market and geographic segment. Each sub-brand of coca cola has different pricing
strategy. Their pricing strategy is based on the competitors pricing, Pepsi is the direct
competitor to coke. Beverage market is said to be a oligopoly market (few sellers and
large buyers), hence they form into cartel contract to ensure a mutual balance in
pricing between the sellers.
 PLACE
Coca cola is the world’s most favourite brand and is available all over the world. The
distribution system of coca cola follows the FMCG distribution pattern. The effective
distribution network of coke has almost eroded the small and middle level players in
the market. In India they have captured even the rural market by extensive
distribution and have eroded the market share.
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 PROMOTION
Coca cola adopts various advertising and promotional strategies to create an increased
demand in the market by associating with life style and behaviour and mainly targeting
value based advertising. You are more likely to see a coke ad individualised for a particular
festival or in with a general positive message.
Coca cola uses CSR as its marketing tool to gain emotional benefits in consumers mind.
The current promotions through CSR include “Support my school” campaign with NDTV.
It has many brand ambassadors like Shahrukh khan, Hrithik Roshan, South Indian Actor
Vijay and Trisha, Ghambir, Aamir khan etc. and has signed contract recently with Imran
khan.
It allows price discounts and allowances to distributors and retailers and uses various types
of sales promotions in order to push more products into the market. It employs both push
strategy through promotions and pull strategy through advertisements and campaigns.
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3.6 SWOT ANALYSIS OF COCA-COLA
STRENGTHS:
Brand Equity – Interbrand in 2011 awarded Coca cola with the highest brand equity award.
Coca cola with its vast global presence and unique brand identity is definitely one of the
costliest brands with the highest brand equity.
 Company valuation – One of the most valuable companies in the world, Coca cola is
valued around 79.2 billion dollars. This valuation includes the brand value, the
numerous factories and assets spread out across the world and the complete operations
cost and profit of Coca cola.
 Vast global presence – Coca cola is present in 200 countries across the world. Chances
are, any country that you go to, you will find coca cola present in that market. This vast
global presence of coca cola has also contributed to the building of the mammoth brand
name.
 Largest market share – There are only 2 Big competitors in the beverage segment –
Pepsi and Coca cola. Out of these 2, coca cola is the clear winner and hence has the
largest market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta,
Limca and Maaza are the growth drivers for Coca Cola.
 Fantastic marketing strategies – Coca cola unlike Pepsi always tries to win peoples
heart. Where Pepsi’s target is continuously changing, and is targeted towards
youngsters, Coca cola targets people of all ages. The targeting is also done by celebrities
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who are well liked – for example – Amitabh Bacchan, Sachin tendulkar, Aishwarya
Rai, Aamir Khan etc.
 Customer Loyalty – With such strong products, it is natural that Coca cola has a lot of
customer loyalty. The products mentioned above like Coca cola and Fanta have a huge
fan following. People will prefer these soft drinks over others. Because of the good taste
of Coca cola, finding substitutes becomes difficult for the customer.
 Distribution network – Coca cola has the largest distribution network because of the
demand in the market for its products. On the other hand, due to this successful
distribution network, Coca cola has been able to command such a high market presence.
WEAKNESSES:
 Competition with Pepsi – Pepsi is a thorn in the flesh for Coca cola. Coca cola would
have been the clear market leader had it not been for Pepsi. The competition in these
two brands is immense and we don’t think Pepsi will give up so easily.
 Product Diversification is low – Where Pepsi has made a smart move and diversified
into the snacks segment with products like Lays and Kurkure, Coca cola is missing
from that segment. The segment is also a good revenue driver for Pepsi and had Coca
cola been present in this segment, these products would have been an additional revenue
driver for the company.
 Absence in health beverages – If you watch the news, you would know that obesity is
a major problem affecting people nowadays. The business environment is changing and
people are taking measures to ensure that they are not obese. Carbonated beverages are
one of the major reasons for fat intake and Coca cola is the largest manufacturer of
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carbonated beverages. The inference is that the consumption of beverages in developed

countries might go down as people will prefer a healthy alternative.
 Water management – Coca cola has faced flak in the past due to its water
management issues. Several groups have raised lawsuits in the name of Coca cola
because of their vast consumption of water even in water scarce regions. At the same
time, people have also blamed Coca cola for mixing pesticides in the water to clear
contaminants. Thus water management needs to be better for Coca cola.
OPPORTUNITIES:
 Diversification – Diversification in the health and food business will improve the
offerings of Coca cola to their customers. This will also ensure that they get better
revenue from existing customers by cross selling their products. The supply chain
which is distributing their beverages can also distribute these snacks thereby sharing
the load of Supply chain costs.
 Developing nations – Although developed nations have a high presence of Coca cola,
these countries are slowly moving towards healthy beverages. However developing
countries are still being introduced to the delight of carbonated drinks and soft drinks.
Countries like India which are developing and have a hot summer, find the
consumption of cold drinks almost doubled during summers. Thus the higher
consumption in developing environments can be a good opportunity to capitalize for
Coca cola.
 Supply chain improvement – Supply chain can be a major cost sink hole with the
transportation costs always rising. Coca cola’s complete business is based on
transportation and distribution. There will always be possible improvements in this
area. Thus Coca cola should keep strict watch on its Supply chain and keep improving
to bring the cost down.
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 Market the lesser selling products – In the product portfolio of Coca cola, there are
several products which have not found acceptance in the market. Coca Cola needs to
concentrate on the marketing of these products as well. It is understood that Coca cola
has made several expenses to launch these products. Thus, the marketing and
subsequent rise of sale of these products will help revenue of Coca cola
THREATS:
 Raw material sourcing – Water is the only threat to Coca cola. The weakness of Coca
cola was the suspected use of pesticides or vast consumption of water. However, the
threat here is that water scarcity is on the rise. With the climate changing, and regions
of various countries facing scarcity of water, sooner or later someone might raise
fingers on beverage companies. Thus, Water sourcing is an axe which can fall anytime
on the head of Coca cola. If water is limited or rationed, Coca cola can experience a
major downfall in their revenue and capacity of distribution. The same can affect its
arch rival Pepsi as well.
 Indirect competitors – Coffee chains like Starbucks, Café coffee day, Costa coffee are
on the rise. These chains offer a healthy competition to Coca colas carbonated drinks.
They might not be a big competition for Coke, but they do give a dent to its beverage
market. Similarly, health drinks like Real and Tropicana as well as energy drinks like
Red bull and Gatorade are stealing away the market share indirectly.
24
3.7 PESTL ANALYSIS
 POLITICAL
The most important political factors which can have a direct impact on Coca-Cola are laws and
government regulation of food products. For example in US, the Food and Drug regulations
apply to its business. Apart from it, these laws may vary from country to country. Coca Cola
and its products must confirm to the relevant laws in the countries they are sold. (Coca Cola is
a maker of non-alcoholic beverages) However, apart from the food and beverages related
regulations and the quality standards, the business is also subject to the common accounting or
business regulations. Tax laws vary from country to country. The company has to follow the
relevant laws in order to do business in a particular market. Changes to these laws can
potentially impact Coca Cola’s profits and revenue. Any increase or decrease in tax rates can
affect the profits of any corporation. Similarly, changes in the political situation of the countries
like government changes or any political turmoil can potentially impact its business.
Coca Cola has remained the target of several lawsuits for it’s over consumption of water. Water
is a scarce resource and the beverage giant requires it in plenty for production. In India
alone several protests were staged against the company by citizens and non-governmental
organizations. In the Kerala state of India, some village councils filed a case against Coca Cola
for giving rise to water shortage through over consumption. The villagers alleged that Coca
Cola consumed water in enormous amounts giving rise to a situation of shortage for the villages
near its plants. Similarly, there are environmental laws which affect the soda giant. Several
lawsuits related to quality standards or use of harmful ingredients have also been filed against
it in the past. Allegations were made regarding Coca Cola using pesticides in its
products. These issues potentially impact their business and revenue.
25
 ECONOMICAL
Economic factors too have a major and direct impact on the business of large and global
companies. The recent global financial crisis reduced the profits of the businesses significantly.
Coca Cola managed to remain relatively unscathed (the effects were felt the most by the
financial companies), still its profits were to some degree affected. The way in which Coca
Cola managed to retain its profits was surprising. Such economic crises impact the customers.
People switch to the purchase of only the basic necessities under such conditions. Most
companies used alternative measures for cost cutting and cost reduction in order to bear the
pressure of economic crisis. Still, in difficult times as those, Coca Cola surprised the
industry. Global economic crises of this scale can have a heavy impact on all the major global
businesses. Similarly, the rising costs of the raw products is an important factor affecting Coca
Cola. Water scarcity is another major trouble. Coca Cola needs water in very large amounts for
production, but its availability is limited. The cost of other raw products and labour has risen
over time. All of these factors can have a deep impact on business and profits of the global
brands. The economic crisis has passed but the strengthening of the US dollar again means
Coca Cola will feel the pinch.
 SOCIAL
Social factors too are just as important from a business point of view. During, the recent
decade’s people have mostly switched from flavoured to healthy drinks. Such trends can lead
to a decline in the popularity of Coca Cola products. Any major change in people’s preference
and taste can impact the profits of a business. The Coca Cola products are mainly popular for
their flavors. However, with people moving towards healthier drinks, Coca Cola had to focus
and invest more on its marketing efforts. Media has also played an important role in changing
people’s perception of soda drinks which are mainly seen as ‘loaded with calories’. The global
drive against obesity affected people’s choice of food products. Globally, junk food and soda
beverages have faced a decline in sales. People are adopting healthier lifestyles and moving
away from anything which can add to their weight including soda.
Coca Cola introduced several low calorie products to adopt to these changes. Other social
trends like change in attitude towards American brands or other similar factors also affect Coca
26
Cola. Following the American attacks on Iraq, its revenues were reduced in several countries.
The importance of culture as a major factor in international trade has already been recognized
by research. Its impact on the businesses cannot be underestimated. Culture’s importance can
also be understood from a marketing perspective. Coca Cola cannot ignore its importance
particularly in the developing markets. As a result it has to adopt its marketing strategy to the
local markets and their cultures – something we also know as brand localization.
 TECHNOLOGICAL:
Technology is an important factor for the large businesses like Coca Cola. Their production
and packaging as well as distribution, depend heavily on technology. In order to remain
profitable, Coca Cola has to invest heavily in it. Technological efficiency ensures timely
production and an efficient supply chain. All these factors are important for generating
revenues. While technology in this area might not change daily, it requires lots of investment
and maintenance. Whether it is the processing of water or the packaging of Coca Cola products,
it all requires heavy use of technology. Thus, technological factors have an important and
sizable impact on the business of Coca Cola.
A PEST analysis demonstrates that certain political, economic, social and technological factors
are of particular importance for the soda giant’s business. While the technological factors might
be in its control, the social, political and economic factors would require it to adopt its
marketing strategies as per the changing conditions. Water scarcity is particularly a big
problem affecting Coca Cola. Water scarcity would continue to trouble it in the long term in
most of the countries where its production plants are based. This will also be the most difficult
area for Coca Cola to manage. While it has made its move towards healthier products by
increasing the number of low calorie beverages and the world economy is also geared towards
growth, a stronger dollar may still continue to bite.
27
3.8 PORTER’S FIVE FORCES
 BARGAINING POWER OF SUPLIER’S:
The bargaining power of suppliers of Coca Cola is weak. It is so because the number
of suppliers is high and the switching costs for Coca Cola low. While Coca Cola can
easily switch from one supplier to another, it is not possible for any supplier to switch
away from Coca Cola as easily. That can lead to losses for any of the suppliers. While
there are several suppliers, the size of individual suppliers is small or moderately large.
Moreover, forward integration is a distant possibility for most of its suppliers. Even if
there are no substitutes for raw materials like sugar, the number of suppliers is still high.
So, the main factors that have come to light regarding the bargaining power of suppliers
are:
 Large number of suppliers

 Small to moderately large size of individual suppliers.
 Forward integration difficult for the suppliers.
 Switching costs for Coca Cola not so high
 BARGAINING POWER OF SUPLIER’S:

The bargaining power of individual customers in case of Coca Cola is low. Individual
customers generally buy small volumes and they are not concentrated in specific
markets either. However, the level of differentiation between Pepsi and Coca cola is
low. Mostly they sell similar flavors. Switching costs are not high for customers and
still the two brands enjoy high brand loyalty. The customers of coca cola are not price
sensitive. Backward integration is not a possibility for the customers whether it is an
individual customer or a large retailer. If a retailer acquires some bargaining power then
it is only because it buys in large volumes. Still, overall the customers’ bargaining
power is weak.
28
 THREATS:
In the beverages industry there are several factors that discourage new brands from
entering. Growing a brand overnight is impossible. There are significant investments to
be made. From operations to marketing every part requires a large investment. Some
local brands may start it at smaller scale and still marketing and hiring qualified staff
requires generous investment. The level of customer loyalty in the industry is moderate
and for any brand to build customer loyalty it will take some time. So, while new
entrants can compete with brands like Coca Cola at a smaller or local level, to build a
brand as big is a mammoth task requiring both capital and skilled human resources.
 THREATS FOR SUBSTITUTES PRODUCTS:

Main substitutes of Coca Cola products are the beverages made by Pepsi, fruit juices,
and other hot and cold beverages. The number of substitutes of Coca Cola products is
high. There are several juices and other kinds of hot and cold beverages in the market.
The switching costs are low for the customers. Apart from it, the quality of the substitute
products is also generally good. So, based on these factors the threat from substitutes is
strong.
 COMPETITIVE RIVALRY BETWEEN THE EXISTING PLAYERS:

There are two major players in the soda industry and they are Coca Cola and Pepsi.
There is intense rivalry between the two major players. There are a few smaller players
too but they do not pose a major competitive threat. The two main players are nearly
of the same size and they have similar products and strategies. The level of
differentiation between the two brands is also low and therefore the price competition
is intense. People have already heard of the Cola wars. So, the level of competitive
rivalry between the existing firms is a strong force.
29
4. RESEARCH METHODOLOGY
SOURCES OF DATA
The data has been collected from both primary as well as secondary sources.
SECONDARY DATA:-
It is defined as the data collected earlier for a purpose other than one currently being pursued.
As a researcher I have scanned lot of sources to get an access to secondary data which have
formed a reference base to compare the research findings. Secondary data in this study has
provided an insight and forms an outline for the core objectives established.
The various sources of secondary data used for this study are:-
 Newspapers.
 Magazines.
 Text books.
 Internet.
PRIMARY DATA:-
The primary data has been collected simultaneously along with secondary data for meeting
the established objectives to provide the solution for the problem identified in this study.
The methods that have been used to collect the primary data are:-
 Questionnaire.
30
RESEARCH MEASURING TOOLS & TECHNIQUES
The primary tool for the data collection used in this study is the respondent’s response to the
questionnaire given to them. The various research measuring tools used are:-
 Questionnaire.
 Percentages.
 Pie-charts.
SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it addresses three
questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to
select them (sampling Procedure). Making the census study of the entire universe will be
impossible on the account of limitations of time and money. Hence sampling becomes
inevitable. A sample is only his portion of population. Properly done, sampling produces
representative data of the entire population.
SAMPLE SIZE:-
Through questionnaire – 200 respondents.
31
LIMITATIONS OF THE STUDY:-
The main purpose of this study is get idea about the preference of the customers towards various
Coca-Cola products. But there are certain factors which affects this study they are as follow:
 Since the sampling procedure was judgmental, the sample selected may not be true
representative of the population.
 Economic and market conditions are very unpredictable (Present and future).
 The project duration is limited to 4 weeks so it limits the area of study.
32
6. DATA ANALYSIS
1. Gender
From the above data we came to know that 53.1% of the responses are male and 46.9% of the
responses are from female.
33
2. Do you like soft drinks?
From the above data, we can came to know that 85.7% of people like soft drinks and From
14.3% of people do not like soft drinks. The people who have said “No” to the soft drinks, they
mind be health conscious and they do not like the taste of any of the soft drinks.
34
3. Which of drinks do you like more?
From the above data, we came to know that 26.5% of Consumer like Coca-Cola, 12.2% of
consumer like Pepsi, 18.4% of consumer like Thumps-up and 42.9% of the consumer like other
products. Hence, In this data most of the consumer consumes other products.
35
4. How often do you purchase Coca-Cola?
From the above data, we came to know about the purchase of Coca-Cola by the
consumer.32.7% of the consumer buys Coca-Cola on Occasionally basis, 36.7% of the
consumers buy the product Coca-Cola rarely, 10.2% of the consumers by the product Coca-
Cola
36
5. Which of drinks your local shop offer?
From the above data we came to know about which of drinks local shop offer. From this 36.7%
of the consumer’s local shop offers Coca-Cola products, 14.3% of the consumers local shop
offers Pepsi, 26.5% of the consumers local shop offers thumps-up and 22.4 % of the consumers
local shop offers other products.
37
6. How do you feel Coca-Cola products are priced?
From the above data, we came to know prices of Coca-Cola Products from that 10.2% of the
consumers told it is extremely overpriced, 36.7% of the consumers told that it is Slightly
overpriced, 38.8% of the consumers told that it is appropriately priced and 14.3% of the
consumers told it is low priced.
38
7. How often do you drink Coca-Cola?
From the above data, we came to know that 59.2% of the consumers drink Coca-Cola
occasionally basis, 14.3% of the consumers drinks ones in a month, 24.5% of the consumers
drinks never, 2% of the consumers drinks every week. Hence, from the data No one of the
consumers drinks every day.
39
8. What influences your choice of drink?
From the above data, We came to know that 57.1% of the consumers influences taste of the
drinks, 22.4% of the consumers influences availability of the drinks, 2% of the consumers
influences the prices of the drinks, 2.2% of the consumers influences customer loyalty and
16.3% of the consumers other choice of the drinks.
40
9. What do you feel about Coca-Cola product range?
From the above data, we came to know that 44.9% of the consumers feel Coca-Cola product
range is Good, 38.8% of the consumers feel Coca-Cola product range is Average, 6.8% of the
consumers feel Coca-Cola product range is Excellent and 10.2% of the consumers feel Coca-
Cola product range is Poor.
41
10. Is Coca-Cola products are always available in restaurants while you

visit?
From the above data, we came to know that 71.4% of the consumers the restaurants offers them
Coca-Cola products and 28.6% of the consumers the restaurants do not offers Coca-Cola
products
42
6. FINDINGS
 CONSUMER RESEARCH:
Consumer research deals with consumer and their problems and solutions to problem.
In this I came to know about the consumers need and expectation levels regarding products and
ascertainable levels of consumer satisfaction.
 PRODUCT RESEARCH:
Under product research I came to know about the modification which consumers
wants as to the quality, packing, shape, color, and quantity etc. of their favorite
chocolate.
 PRICING RESEARCH:
This includes ability to consume, to pay for the product how much a person can spend
on his/her favourite chocolate. In this I have tried to find out consumer’s price expectations
and reactions.
 ADVERTISING RESEARCH:
Under this I have concluded that whether the advertisement appeals the
consumers or not. This also includes evaluating and selecting the proper media-mix
and measuring advertising effectiveness.
43
7. SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part of “Coca-
Cola India”. The suggestions are arranged in order of priority, highest first.
 Perform a detail demand survey at regular interval to know about the unique needs
and requirements of the customer.
 The company should make hindrance free arrangement for its customers/retailers to
make any feedback or suggestions as and when they feel.
 The company should focus to bring some more flavors like health drinks and other
low-calorie offerings. Coca-Cola India can also introduce some fruit based drinks, as
it has already entered the energy drink arena with “Burn”.
 The company must keep a watch on its primary competitors in market in order to be
able to compete with them.
 The company should use new attractive system of word of mouth advertisement to
keep alive the general awareness in the whole market as a whole.
 The company should be always in a position to receive continuous feedback and

suggestions from its customers/ consumers as well as from the market and try to solve
it without any delay to establish its own good credibility.
 A strong watch should be kept on distributors so that the goodwill of the BRAND
doesn’t get affected.
44
8. CONCLUSION
Though there were certain limitations in the study that was conducted. The sample allowed for
some conclusions to be drawn on the basis of analysis that was done on the data collected.
The data has clearly indicated that Coca-Cola products are more popular than the products of
Pepsi mainly because of its TASTE, BRAND NAME, INNOVATIVENESS and
AVAILABILITY, thus it should focus on good taste so that it can capture the major part of
the market. The study also indicated that the consumers are satisfied with the Coca-Cola
products and purchase them without any specific occasions.
In today’s scenario, customer is the king because he has got various choices around him. If
you are not capable of providing him the desired result he will definitely switch over to the
other provider. Therefore to survive in this cutthroat competition, you need to be the best.
Customer is no more loyal in today’s scenario, so you need to be always on your toes.
45
9. BIBLIOGRAPHY
https://www.marketing91.com/marketing-mix-coca-cola/
https://www.marketing91.com/swot-coca-cola/
https://www.cheshnotes.com/2017/08/coca-cola-pest-analysis/
https://www.cheshnotes.com/2017/02/coca-cola-five-forces-analysis/
46
ANNEXURE
QUESTIONNAIRE
1. Do you like soft drinks?
 Yes
 No
2. Which of drinks do you like more?

 Pepsi
 Coca-Cola
 Thums up
 Other
3. How often do you purchase Coca-Cola?
 Occasionally
 Rarely
 Frequently
 Never
4. Which of drinks does your local shop offer?

 Coca-Cola
 Pepsi
 Thums up
 Other
5. How do you feel Coca-Cola products are priced?

 Extremely Overpriced
 Slightly overpriced
 Appropriately Priced
 Low Priced
47
6. How often do you drink Coca-Cola?

 Everyday
 Ones in a month
 Every week
 Occasionally
 Never
7. What influences your choice of drink?

 Taste
 Availability
 Price
 Customer Loyalty
 Other
8. What do you feel about Coca-Cola Product range?

 Good
 Average
 Excellent
 Poor
9. Is Coca-Cola products are always available in restaurants while you visit?

 Yes
 No
48

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STUDY OF CUSTOMER PREFERENCE OF COCA-COLA

A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

Producing companies to formulate customer-centric strategies. These changes had a positive

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

COLA NON-COLA NON-COLA

 Alcoholic, non-alcoholic and sports beverages.

 To refresh the world...

 Partners: Nurture a winning network of customers and suppliers, together we create

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

LIVE OUR VALUES:

FOCUS ON THE MARKET:

ACT LIKE OWNERS:

3.1. HISTORY OF COCA-COLA

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

3.3 COCA-COLA IN INDIA

3.4 PRODUCTS IN INDIA

GLASS PET CAN FOUNTAIN

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

GLASS PET CAN FOUNTAIN

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

GLASS PET CAN FOUNTAIN

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

RGB PET CAN FOUNTAIN

200ml, 300ml 500ml, 600ml, 330 ml VARIOUS SIZES

GLASS PET CAN FOUNTAIN

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

 MINUTE MAID PULPY ORANGE:-

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

RGB PET POCKET MAAZA

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

Available in PET 500ml and 1000ml.

3.5 MARKETING MIX OF COCA-COLA

3.6 SWOT ANALYSIS OF COCA-COLA

carbonated beverages. The inference is that the consumption of beverages in developed

3.7 PESTL ANALYSIS

3.8 PORTER’S FIVE FORCES

 BARGAINING POWER OF SUPLIER’S:

 Large number of suppliers

 BARGAINING POWER OF SUPLIER’S:

 THREATS FOR SUBSTITUTES PRODUCTS:

 COMPETITIVE RIVALRY BETWEEN THE EXISTING PLAYERS:

RESEARCH MEASURING TOOLS & TECHNIQUES

Through questionnaire – 200 respondents.

LIMITATIONS OF THE STUDY:-

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

2. Do you like soft drinks?

3. Which of drinks do you like more?

4. How often do you purchase Coca-Cola?

5. Which of drinks your local shop offer?

6. How do you feel Coca-Cola products are priced?

7. How often do you drink Coca-Cola?

8. What influences your choice of drink?

9. What do you feel about Coca-Cola product range?

10. Is Coca-Cola products are always available in restaurants while you

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

1. Do you like soft drinks?

2. Which of drinks do you like more?

3. How often do you purchase Coca-Cola?

4. Which of drinks does your local shop offer?