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Chapter-1

INTRODUCTION

Soft Drinks in India

Euro monitor International's Soft Drinks in India market report offers a comprehensive

guide to the size and shape of the market at a national level. It provides the latest retailsales data, allowing you to identify the sectors driving growth. It identifies the leading

companies, the leading brands and offers strategic analysis of key factors influencing the

market - be they new product developments, packaging innovations, economic/lifestyle

influences, distribution or pricing issues. Forecasts illustrate how the market is set to

change.

Robust growth continues

The soft drinks industry continued on its path to recovery from the low growth seen

between 2005 and 2006, with higher volume growth in 2008 than that seen in 2007. The

mature sectors of bottled water, fruit/vegetable juice and carbonates saw a dynamic year,

with companies refreshing their products’ brand image and packaging to attract new

consumers. Emerging product categories, such as energy drinks and reconstituted 100%

juice, saw high double-digit growth rates, as companies increased their products’

penetration in India. Off-trade volume growth was slightly higher than on-trade volume

growth, as convenient on-the-go packaging, company sponsored chillers in kiranas and

attractive supermarket displays fuelled off-trade sales across the market.



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With the industry back on the upward growth curve, companies refreshed their brands by

introducing new and more premium packaging designs, pack sizes and communication

campaigns. In 2008, bottled water was especially dynamic, with all the major national

brands following the cue of Bisleri’s rebranding in late 2007. Carbonates and juice drinks

were also reinvigorated with new pack sizes that targeted on-the-go consumption by

young adults. With “naturally healthy” becoming a key focus for consumers and

manufacturers, fruit/vegetable drinks companies focused their efforts on highlighting

their products’ fresh fruit content and health attributes. Companies put in motion plans to

extend their product portfolios to emerging categories such as 100% juice, energy drinks

and flavored water.

Domestic players thrive

The multinationals Coca-Cola India and PepsiCo India Holdings saw their off-trade value

shares of soft drinks in India decline over the review period, as other national and

regional players updated their brand portfolios and increased the penetration of their

brands in India. Bottled water players, such as Parle Bisleri and Dhariwal Industries, were

particularly successful in expanding their consumer base through a concerted effort toincrease their manufacturing capacity and move to newer regions within India. Dabur

India and Parle Agro benefited from their first mover advantage in being present in high-

growth emerging product categories, such as 100% juice and other non-cola carbonates.



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Modern retailing thrives alongside kiranas

With companies increasing their spend on below-the-line marketing activities, the

ubiquitous kiranas were the beneficiaries of efforts such as branded glass door

refrigerators, regional language banners and displays, and the roll-out of on-the-go

packaging for carbonates and juice drinks. Supermarkets, which are still something of a

novelty in many small cities, continued to attract a combination of regular grocery

shoppers and young impulse buyers. Bundling and discount promotions for

fruit/vegetable juice and concentrates drove product sampling in supermarkets. Emerging

categories, such as energy drinks and RTD tea, received a boost from impulse buyers in

supermarkets, while attractive displays and imported products in up market shopping

centre introduced consumers to new products, such as sports drinks and flavored water.

Double-digit growth expected

With rising consumer affluence and companies tailoring their product designs and

marketing specifically to target the young adult population group, the trend of robust

double-digit annual volume growth is expected to continue over the forecast period. The

foray of leading national players into emerging categories, such as energy drinks and

100% juice will help sustain high growth rates in the future. Competition from the

unorganized sector is expected to decline over the forecast period, as the national players

make a concerted effort to educate consumers about the health benefits of packaged

drinks, and move into markets such as bulk bottled water, which are currently dominated

by the unorganized sector.



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Chapter-2

Company Profile

Douglas N. Daft was elected chairman, Board of Directors, and chief executive officer

of The Coca-Cola Company on February 17, 2000. Mr. Daft is the 11th chairman of

the Board in the history of the Company. Mr. Daft, 60, joined the Company in 1969 as

planning officer in the Sydney, Australia office. He held positions of increasing

responsibilities throughout Asia and in 1982 was named vice president of Coca-Cola

Far East Ltd.

In December 1988, Mr. Daft was named president of the North Pacific Division and

president of Coca-Cola (Japan) Co., Ltd. He moved to the Company's Atlanta

headquarters in 1991 to assume the responsibility of president of the Pacific Group

and in 1999 his responsibilities were expanded to include the Company's Africa

Group, and Schweppes Beverage Division, as well as the Middle and Far East Group.

Mr. Daft was elected president and chief operating officer of The Coca - Cola

Company in December 1999. He serves on the boards of Sun Trust Banks, the Boys

& Girls Clubs of America, Catalyst, the CERGE-EI Foundation(Center for Economic

Research and Graduate Education - Economics Institute) in the Czech Republic, the

Lauder Institute for Management and International Studies at the University of

Pennsylvania, the Prince of Wales International Business Leaders Forum, the

Grocery Manufacturers of America, the British - American Chamber of Commerce,

the G100, the Woodruff Arts Center, the Commerce Club, and the McGraw-Hill

Companies. Mr. Daft is a trustee of Emory University, the American Assembly and the



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Center for Strategic & International Studies. He is also a member of The Trilateral

Commission, The Business Council, and The Business Round table. Mr. Daft received a

bachelor's degree in mathematics from the University of New England and a post-

graduate degree in administration from the University of New South Wales. He

holds an honorary doctorate in international law from Thunderbird, The American

Graduate School of International Management.

History

Coca-cola originated in Atlanta, Georgia, on May 8, 1886. Pharmacist Dr. J.S.Pemberton

stirred up a fragment caramel colored syrup in a three – legged brass kettle in his

backyard and carried a jug of his formulation down the street to Jacob’s pharmacy. That

same day, the new product made its debut as a soda fountain drink for five cents a glass,

when carbonated water was mixed with the new syrup, refreshment history was made!

Thinking that two C’s would look well in advertisement Dr. Pemberton suggested the

name & calligraphic the famous trademark in a unique script.

On May 29th 1886, the first newspaper advertisement appeared in the Atlanta Journal

which proclaimed Coca-cola was delicious and refreshing & the theme continues to echo

today.

Following the death of Dr. J.S.Pembeston in 1888, all his remaining rights to the product

were purchased by G.Candler, a druggist & Atlanta Businessman. Mr. Candler

recognized great potential in Coca-cola & went on to acquire compete control for 2300 in

1891.

As Candler’s strategy was to make Coca-cola available every where & to trigger desire as

often & in as many ways possible. This strategy is still used today.

United States patent officer on January 31st

1893, and has been renewed periodically.

That same year, the first dividend was paid to the shareholders.



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Non-alcoholic soft drink beverage market can be divided in to fruit drinks & soft drinks.

Soft drinks can be further divided into carbonated & non-carbonated drinks. Coca, lemon

& oranges are carbonated drinks, while mango drinks come under non-carbonated

category. The soft drinks mark et till early 1990’s was in hands of domestic players like

Campa, Thumbs up, Limca etc. But with opening up of economy & coming of MNC

players Pepsi & Coke the market has come totally under their control, while worldwide

Coke is leader in carbonated drinks market in India. It is Pepsi which scores one coke but

this difference is fast decreasing (Courtesy huge ad-spending by both the players).

Soft drinks are available in glass bottles, aluminum cans & PET bottles for home

consumption.

The cola industry has phenomenal possibilities for rocketing profit growth in spite of the

sign of relief heaved by the manufacture at the abrupt sensational termination of coca

cola monopoly the tastes of cola is by no means extinguished the coca. Cola have a status

symbol to it..., generated by the sub standard, penetrated, advertising and extensive

distribution network.

Total soft drink segment is growing at the rate of 10% per year still if international

standard area considered the per capita consumption of three serving in rock bottom, less

than even our neighbors’ Pakistan and Bangladesh, where it is four more as much. So

with kind of a market potential coke entered in India in 1991 after the permissions of

setting up Britico Food company to coke was granted by the government in Pune in 1992

the plant was established for is deducted then the bottle are taken out of the line and

Cleaned again or rejected.



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The most important step is the mixing of drink concentrate dissolved in the soft water the

sugar syrup at the same time. Carbon dioxide is passed in the drink to produce a fizz.

After the crowing of the bottle the crown contains the manufacturing data batch number

and Time.

Know About their Global Bottling System

Today, our products reach consumers and customers around the world through a vast

distribution network made up of local bottling companies. These bottlers are located

around the world, and most are independent businesses. Using syrups, concentrates and

beverage bases produced by The Coca-Cola Company, our global bottling system

packages and markets products, then distributes them to more than 14 million retail

outlets worldwide.

The Coca-cola is committed to assisting its bottlers with the functions of an efficient

bottling operation and initiating quality systems to ensure the highest quality products for

our consumers.

Coca-cola :- One of the Worlds Largest Beverage Company

The coca-cola company exists to benefit, refresh everyone it touches, for more than

century they have been fulfilling this promise.

Since its beginning in spirit of 1886, Coca-cola has grown to become the most recognized

trademark in history. Operating in more than 195 countries worldwide, Coke is the most

popular beverage on earth & is enjoyed over 773,000,000 times daily.

The Coca-cola is the worldwide leading manufactures, marketer & distributor of non -

alcoholic beverage concentrates & syrups, with world headquarters in Atlanta, Georgia.

The Co’s & its subsidiaries enjoy nearly 31000 people around the world. Syrups,

concentrates & beverages bases for Coke. The Coke flagship brand & over 230 other



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company soft drink brands are manufactured & sold by the Coca Cola Co’s & its

subsidiaries in nearly 200 countries around world.

While much of the world has changed since 1886, with the old giving way to the new at

almost daily strokes, what has withstood the test and taste of time, binding the young and

old to enjoy their moments of simple pleasure and eternal joy is the magic of Coke. And

this year, consumers the world over will reach for products of The Coca-Cola Company

more than a billion times every single day. It is one of the world’s largest beverage

companies, which has come a long way since its modest beginnings more than a century

ago...

Coke Advertisements: - It’s the Real Thing

Advertising has played an important role in the success of our products since our first

newspaper ad in 1886, which read, "Coke” Delicious! Refreshing! Exhilarating!

Invigorating!" The Company uses advertising to trigger desire as often and in as many

ways as possible. Throughout the years, slogans for Coke have always been memorable.

Here are some highlights:

2000 - COCA-COLA ENJOY

1993 - ALWAYS COCA-COLA

1990 - CAN’T BEAT THE REAL THING

1989 - CAN’T BEAT THE FEELING

1986 - RED, WHITE AND YOU

1982 - COKE IS IT

1976 - COKE ADDS LIFE

1971 - I’D LIKE TO BUY THE WORLD A COKE

1969 - ITS THE REAL THING

1963 - THINGS GO BETTER WITH COKE



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1959 - BE REALLY REFRESHED

1944 - GLOBAL HIGH SIGN

1942 - ITS THE REAL THING

1936 - ITS THE REFRESHING THING TO DO

1922 - THE PAUSE THAT REFRESHES

Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high

standard of quality for other products around the world. The Company recognizes that

Coca-Cola belongs to the billions of consumers in every corner of the globe who have

chosen it as their favorite soft drink. Their advertising reflects that special relationship

between consumers and the simple moments of pleasure they have come to associate with

Coca-Cola.

Quality is their Highest Business Objective:-

The ultimate objective of our business strategy is to increase volume, expand our share of

worldwide non-alcoholic ready to drink beverages sales, maximize our long term cash

flows & create economic value added by improving economic profit.

The Coke system has more than 16 million customers around the world that sell or serve

our products directly to consumers. We keenly focus on enhancing value for these

customers & helping them grow their beverages businesses. We strive to understand each

customer’s business & needs, weather that customer is a sophisticated retailer in a

developed market or a kiosk owner in an emerging market.

There are nearly 6 billion people in the world who are potential consumers of our

company’s products. Ultimately our success & our mission depend on our ability to

satisfy more of their beverage consumption demands and our ability to add value for our



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customers. We achieve this when we place the right products in the right markets at the

right time.

Strong cash flow position, which can be derived from consistent performance and lower

investment requirements of average earnings per share growth of approximately 154.

Over the long term capital expenditure will be stable to declining from historical trends

over the next 5 years, as the investments in the bottling side of the business will be

reduced. Maintain the net debt to net capital ratios that have been shown historically.

The Coke exists to benefit and refresh everyone it touches. Quality is more than just

something we taste or see or measure. It shows in our every action. They relentlessly

strive to exceed the world's ever-changing expectations because keeping the Quality

promise in the marketplace is their highest business objective and their enduring

obligation.

According to Coke , most of the Consumers across the globe choose their brand of

refreshment more than a billion times everyday because coke is:

The Symbol of Quality

Customer and Consumer Satisfaction

A Responsible Citizen of the World



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Chapter-3

Coca cola products

Soft drinks

Our dozens of soft drink brands provide flavor and refreshment in a variety of choices.

From the original Coca-Cola to most recent introductions, soft drinks from The Coca-

Cola Company are both icons and innovators in the beverage industry.

Brand Name: - COCA-COLA

Drink Type: - SOFT DRINKS

Coca-Cola is one of the most recognizable brands around the globe. Having established a

leading brand that fascinates consumers all over the world, Coca-Cola is widely regarded

as one of the most booming organizations having achieved huge branding success.

Achieving Brand Reinvention

A key element of Coca-Cola’s success can be certainly attributed to its branding

strategies. Since 1866 that it started its operations until today that is a powerful, globally

known corporation, the company’s brand development strategies constantly raise

consumer interest and remain highly competitive. Having achieved impressive brand

loyalty through continuous reinvention of its brand and focus on brand enhancement,

Coca-Cola is, without any doubt, the leading non-alcoholic beverage company in the

world.



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Focusing on Consumer Sophistication

Its branding strategies focus on the changing market realities and consumer sophistication

that requires different approach and brand redesigning. In the early years, the company

focused on making the brand affordable, available and acceptable in the aim of establishing a brand that would be instantly recognizable and highly appreciated in

consumers’ minds. Over the years, and in an effort to adjust its branding strategies to the

new consumer demands, Coca-Cola focused on building brand identity by offering value

for price, differentiation to meet consumer preferences (preference), and pervasive

penetration. Today, by testing at least 20 different brands on a monthly basis on a sample

of 4,000 consumers, Coca-Cola is a corporation with strong brand identity and brand

image.

Evaluating Consumer Response

Besides, the company constantly assesses consumer response to its brands in order to

evaluate consumer perception and find out what consumers believe about its products.

Consumers relate particular brands with particular symbols and promises that need to be

met. Similarly, Coca-Cola is related to a particular level of customer satisfaction that is

determined by the collective memory of its target audience.

Achieving Strategic Consensus

Another important aspect of Coca-Cola’s branding strategies is the fact that strong brands

make great sales and increase their revenues. However, Coca-Cola has taken the extra

mile by building a brand that has managed to increase sustainable sales by attracting and

retaining the best human capital and investing in employee relations and customer

relation management. This has enabled the corporation not only to achieve strategic

consensus and alignment at all organizational levels, but also to trigger positive feelingsin consumers’ minds.

Building Brand Loyalty

Finally, strong brand image is related to brand loyalty. The more consumer demands are

satisfied, the more consumers are attached to a brand and retained by default. Also, Coca-



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Cola’s brand image entails the purchase frequency that is boosted by effective advertising

campaigns and marketing strategies. In doing so, the corporation expands its customer

base and enhances customer loyalty by meeting customer needs and raising customer

satisfaction.

Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the

best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Pemberton,

Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with

carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a

trademark in 1893 and by 1895 it was being sold in every state and territory in the United

States. In 1899, The Coca-Cola Company began franchised bottling operations in the

United States. Coca-Cola might owe its origins to the United States, but its popularity hasmade it truly universal. Today, you can find Coca-Cola in virtually every part of the

world.

INDIAN PRODUCT RANGE

Flavor Ingredients Pack Product CompanyCola Cola Flavor

carbonated water

sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Coke,

Thumsup

Pepsi

Coca-Coal

Pepsi

Orange Orange Flavor +

CarbonatedWater+ Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Fanta

Mirinda

Coca-Cola

Pepsi



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Fruit Juice Mango Pulp+

Treated water+

sugar

250 ML Maaza

Slice

Coca-Cola

Pepsi

Cloudy

Lemon

Lemon Flavor +

Carbonated

Water+ Sugar

200Ml.

300Ml.

500Ml.

1 Litre

1.5 Litre

2 Litre

Limca

Mirinda Lemon

Coca-Cola

Pepsi

Clear

Lemon

Lemon Flavor+

Carbonated Water

+ Sugar

200Ml.

300Ml.

500Ml.1 Litre

1.5 Litre

2 Litre

Sprite

7’Up

Dew

Coca-Cola

Pepsi

Conclusion

In conclusion, Coca-Cola is a successful product, not only because it has built a

recognizable logo and brand name, but mostly because it has managed to position its

brand in a way that takes advantage of all the elements of marketing mix, i.e. product,

place price and promotion/distribution. In doing so, it achieves to develop a brand

personality and distinguish itself from competition, while offering consumers a clear

view of its brand values. This leads to increased brand loyalty and satisfaction.

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon

Lime, Cola Lime, Cola Orange and Cola Raspberry.



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Chapter-4

CUSTOMER PREFERENCES

DEFINITION OF CUSTOMER

Customer is a value - maximizer, within the bounds of search costs and limited

knowledge, mobility, income and form an expectation of value and act upon it. Whether

or not the offer lives up to the value expectation affects both satisfaction and repurchase

probability.

Gandhi's definition of customer can be given as –

1) A customer is not an outsider to our business. He is definite apart of it. A customer is

not an interruption of our work. He is the

main purpose of it.

2) A customer is doing us a favor by letting us serve him. We are not doing any favor.

3) A customer is not a cold statistic; he is a flesh & blood human being with feelings and

emotions like our own.

4) A customer is not someone to argue or match wits with. He deserves courteous and

attentive treatment.

5) A customer is not dependent on us. We are dependent on him.

6) A customer brings us his wants. It is our job to handle them properly and profitably-

both to him and us.



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Consumer preferences are defined as the subjective (individual) tastes, as measured by

utility, of various bundles of goods. They permit the consumer to rank these bundles of

goods according to the levels of utility they give the consumer. Note that preferences are

independent of income and prices. Ability to purchase goods does not determine a

consumer’s likes or dislikes. One can have a preference for Porsches over Fords but only

have the financial means to drive a Ford.

Individual consumer has a set of preferences and values whose determination is outside

the realm of economics. They are no doubt dependent upon culture, education, and

individual tastes, among a plethora of other factors. The measure of these values in this

model for a particular good is in terms of the real opportunity cost to the consumer who

purchases and consumes the good. If an individual purchases a particular good, then theopportunity cost of that purchase is the forgone goods the consumer could have bought

instead.

We develop a model in which we map or graphically derive consumer preferences.

These are measured in terms of the level of satisfaction the consumer obtains from

consuming various combinations or bundles of goods. The consumer’s objective is to

choose the bundle of goods which provides the greatest level of satisfaction as they the

consumer define it. But consumers are very much constrained in their choices. These

constraints are defined by the consumer’s income, and the prices the consumer pays for

the goods.

An indifference curve is a collection of all commodity bundles which provide the

consumer with the same level of utility. The indifference curve is so named because the

consumer would be indifferent between choosing any one of these commodity bundles.

Consumers face trade-offs in their purchase decisions, since their income is limited and

choices are numerous. In order to make choices, consumers must combine budget

constraints (what they can afford), and preferences (what they would like to consume).

A budget constraint, means what a consumer can purchase is constrained by income. The

slope of the budget constraint measures the rate at which one consumer can trade off one



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good for another, and the relative prices of the two goods. Budget constraints are

determined by both the income of the consumers, and the relative prices.

Properties of Indifference Curves

1. Higher indifference curves are preferred to lower ones, since more is preferred to

less (non-satiation).

2. Indifference curves are downward sloping. If the quantity of one goods is

reduced, then you must have more of the other good to compensate for the loss.

3. Indifference curves do not cross (intersect), since this would imply a

contradiction.

4. Indifference curves are bowed inward (in most cases). The slope of indifference

curves represents the MRS (rate at which consumers are willing to substitute one

good for the other). People are usually willing to trade away more of one good

when they have a lot of it, and less willing to trade away goods which are in

scarce supply. This implies that MRS must increase as we get less of a good.

DEFINING CUSTOMER VALUE AND SATISFACTION:-

Customer Value:-Customers will buy from the firm that they see as offering the highest

perceived value.

Customer perceived value (CPV) is the difference between the prospective customer’s

evaluation of all the benefits and all the costs of an offering and the perceived

alternatives. The customer delivered value has two components – total customer value and

total customer cost.

Total Customer Value is the perceived monetary value of the bundle of economic,

functional, and psychological benefits customers expect from a given market offering.

Total Customer Cost is the bundle of costs customers expect to incur in evaluating,

obtaining, using, and disposing of the given market offering.



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Customer satisfaction: The provision of goods or services which fulfill the customer's

expectations in terms of quality and service

Customer Satisfaction:-

Customer satisfaction is more a function of how closely your customers' experiences with

your business conform to their expectation."

Customer means that the customer's needs are met, products and services are satisfactory

and customer experience is positive.

Kotler (1997) defines customer satisfaction as follows- "satisfaction is a persons feeling

of pleasure or disappointment resulting from comparing a product is perceived

performance (or outcome) in relation to his or her expectations." It portrayed the idea of

measuring how satisfied customers are with the organization's efforts in a market place.

Customer satisfaction measures the following variables:

1) product

2) service

3) relationship

4) price

5) convenience

6) brand image

7) brand association

8) total customer experience

Some more definitions of Customer satisfaction can be given as:-

Customer satisfaction: The provision of goods or services which fulfill the customer's

expectations in terms of quality and service



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Customer satisfaction: - A state that results when an exchange meets the needs and

expectations of the buyer.

Customer Satisfaction: - Retailers know that satisfied customers are loyal customers.

Consequently, retailers must develop strategies intended to build relationships that result

in customers returning to make more purchases.

Customer satisfaction: - The degree to which there is match between the customer's

expectations of the product and the actual performance of the product.

Customer Expectations: - The buyers form their expectations from past buyingexperience, friends’ and associates’ advice and marketers and competitors information

and promises. If marketers raise expectations too high, the buyer is likely to be

disappointed. However, if the company sets expectations too low, it won’t attract enough

buyers (although it will satisfy those who do buy).

Some of today’s most successful companies are raising expectations and delivering

performance to match. These companies are aiming for TCS- Total Customer

Satisfaction.

PRODUCT LIFE CYCLE

Product Life Cycle (PLC) is a term used to describe individual stages in the life of a

product. Product life cycle is an important aspect of conducting business which affects

strategic planning. Product life cycle can be divided into several stages characterized by

the revenue generated by the product.

Product life cycle is very similar to a life. A living being is first born (introduction). Then

it grows through its youth (growth) to become an adult (maturity). When it gets old, it

declines both mentally and physically (decline), after which it eventually dies.



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Why is it important to know the product life cycle?

Any for-profit business is constantly seeking ways to grow future cash flows by

maximizing revenue from the sale of products and services. Positive cash flow allows a

company to invest in development of new products and services, to expand productioncapabilities, to improve its workforce, and so on. It is most companies' goal to

acquire key market share and become a leader in its respective industry.

A consistent and sustainable cash flow from product that is well established and

stabilized is the key to any long-term investment. And knowing the product life cycle can

help with this.

What are the trends in product life cycle?

Short...

One most observable trend is that product life cycles are becoming shorter and shorter.

This is given mostly by ever-increasing competition (seeMichael Porter's Five

Forces model for more on competition). While a manufacturer of pots and utensils

faced competition only from another manufacturer in the same city hundreds of years

ago, a pot manufacturer these days faces competition from many companies on the other

side of the globe in addition to other local manufacturers. Everyone is trying to come to

the market with innovations.

Revitalization...

Many products in mature industries are revitalized by product differentiation and market

segmentation. It is not uncommon that companies try to find new niches and market

segments when they see their product is about to enter the Decline phase. Companies are

becoming very flexible in their ability to reassess product life cycle costs and revenues.

Longer operating life...

Even though product life cycles shrink, the operating life of many products is becoming

longer. While a 10 years old car would be considered a wreck in 60's, today's cars are

relatively very durable and their life time is extending. Companies have to take product

http://www.maxi-pedia.com/free+cash+flow+FCF

http://www.maxi-pedia.com/Five+Forces+model+by+Michael+Porter







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operating life into account and adjust their planning accordingly. Companies are

attempting to optimize product life cycle revenue and profits through warranties and

upgrades to existing products.

Introduction.

The need for immediate profit is not a pressure. The product is promoted to create

awareness. If the product has no or few competitors, a skimming price strategy is

employed. Limited numbers of product are available in few channels of distribution.

Growth

Competitors are attracted into the market with very similar offerings. Products become

more profitable and companies form alliances, joint ventures and take each other over.

Advertising spend is high and focuses upon building brand. Market share tends to

stabilize.

Maturity

Those products that survive the earlier stages tend to spend longest in this phase. Sales

grow at a decreasing rate and then stabilize. Producers attempt to differentiate products

and brands which is a key to this. Price wars and intense competition occur. At this point

the market reaches saturation. Producers begin to leave the market due to poor margins.

Promotion becomes more widespread and uses a greater variety of media.



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Decline

At this point there is a downturn in the market. For example more innovative products are

introduced or consumer tastes have changed. There is intense price-cutting and many

more products are withdrawn from the market. Profits can be improved by reducing

marketing spend and cost cutting.

Problems with Product Life Cycle.

In reality very few products follow such a prescriptive cycle. The length of each stage

varies enormously. The decisions of marketers can change the stage, for example from

maturity to decline by price-cutting. Not all products go through each stage. Some go

from introduction to decline. It is not easy to tell which stage the product is in. Remember

that PLC is like all other tools. Use it to inform your gut feeling.

Product Life Cycle (PLC) is a term used to describe individual stages in the life of a

product. Product life cycle is an important aspect of conducting business which affects

strategic planning. Product life cycle can be divided into several stages characterized by

the revenue generated by the product.

Product life cycle is very similar to a life. A living being is first born (introduction). Then

it grows through its youth (growth) to become an adult (maturity). When it gets old, it

declines both mentally and physically (decline), after which it gets old, it declines both

mentally and physically (decline), after which it eventually dies.

Why is it important to know the product life cycle?

Any for-profit business is constantly seeking ways to grow future cash flows by

maximizing revenue from the sale of products and services. Positive cash flow allows a

company to invest in development of new products and services, to expand production

capabilities, to improve its workforce, and so on. It is most companies' goal to

acquire key market share and become a leader in its respective industry.





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A consistent and sustainable cash flow from product that is well established and

stabilized is the key to any long-term investment. And knowing the product life cycle can

help with this.

ADVERTISING

Advertising has become increasingly important to business enterprises – both large and

small. Outlay on advertising certainly is the voucher. Non-business enterprises have also

recognized the importance of advertising. The attempt by army recruitment is bases on a

substantial advertising campaign, stressing the advantages of a military career. The health

department popularizes family planning through advertising.

Labor organizations have also used advertising to make their viewpoints known to the

public at large. Advertising assumes real economic importance too. Advertising strategies

that increase the number of units sold stimulate economies in the production process. The

production cost per unit of output is lowered. It in turn leads to lower prices. Lower

consumer prices then allow these products to become available to more people. Similarly,

the price of newspapers, professional sports, radio and TV programmes, and the like

might be prohibitive without advertising. In short, advertising pays for many of the

enjoyable entertainment and educational aspects of contemporary life.

Advertising has become an important factor in the campaigns to achieve such societal-

oriented objectives such as the discontinuance of smoking, family planning, physical

fitness, and the elimination of drug abuse. Though in India, advertising was accepted as a

potent and recognized means of promotion only 25 years ago, its growing productive

capacity and output necessitates the finding of consumers and advertising plays an

important role in this process. Advertising helps to increase mass marketing while

helping the consumer to choose from amongst the variety of products offered for his

selection. In India, advertising as a profession is in its infancy.



26

Every product has an image. The consumer tries to consume a brand which has the

maximum fit with his/her own personality/image. The celebrity endorser fits in between

these two interactions, where he tries to bring the image of the product closer to the

expectation of the consumer, by transferring some of the cultural meanings residing in his

image to the product. The general belief among advertisers is that brand communication

messages delivered by celebrities and famous personalities generate a higher appeal,

attention and recall than those executed by non-celebrities. The quick message-reach and

impact are all too essential in today’s highly competitive environment.

RELATIONS WITH CUSTOMERS

Key to stability in today's dynamic marketplace is in forging long-term relationships with

customers. Technology is changing at such a fast pace today that by just offering a

service or a product a business won’t be at an advantage for too long. A customer -facing

business is one in which the customer can demand and receive what he wants.

Customer Relationship Management

Definition:

Customer Relationship Management (CRM) is a business strategy to identify, cultivate,

and maintain long-term profitable customer relationships. It requires developing a

method to select your most profitable customer relationships (or those with the most

potential) and working to provide those customers with service that exceeds their

expectations.

There are many different facets of CRM for every business:

Identifying qualified leads and gaining new customers

Closing sales more effectively and efficiently

Allowing customers to perform business transactions quickly and easily

Providing service and support following a sale



27

Customer Relationship Management (CRM) refers to the methodologies and tools that

help businesses manage customer relationships in an organized way.

For small businesses, customer relationship management includes:

- CRM processes that help identify and target their best customers, generate quality sales

leads, and plan and implement marketing campaigns with clear goals and objectives;

- CRM processes that help form individualized relationships with customers (to improve

customer satisfaction) and provide the highest level of customer service to the most

profitable customers;

- CRM processes that provide employees with the information they need to know their

customers' wants and needs, and build relationships between the company and its

customers.

Customer relationship management tools include software and browser-based

applications that collect and organize information about customers. For instance, as part

of their CRM strategy, a business might use a database of customer information to helpconstruct a customer satisfaction survey, or decide which new product their customers

might be interested in.

CRM; sometimes called customer service management.



28

Chapter-5

Marketing Research:-

It is a function that links the consumer, customer & public to the marketer through

information. It is used to identify & define marketing opportunities & problems; to

generate, refine & evaluate marketing actions; to monitor marketing performance & to

improve understanding of marketing process.

Marketing researchers engage in wide varieties of activities, ranging from market

potential & market share study, to assessment of customer satisfaction & purchase

behavior, to study pricing, product, distribution & promotion activities.

A company can conduct marketing research in its own research department or have some

or all of it’s done outside. Whether a company uses outside firms depends on its own

research skills & resources. Although most large companies have their own market

research department, they often use outside firms to do special research task or special

studies. A company with no research department has to but the services of research firms.

The Value of Information

Information can be useful, but what determines its real value to the organization? In

general, the value of information is determined by:

The ability and willingness to act on the information.

The accuracy of the information.

The level of indecisiveness that would exist without the information.

The amount of variation in the possible results.

The level of risk aversion.

The reaction of competitors to any decision improved by the information.



29

The cost of the information in terms of time and money.

Marketing Research Process:-

The market research process consist of 4 steps:-Defining the problem & Research

objective, developing the research plan, Implementing the research plan & Interpreting &

Reporting the findings.

Defining the problem & Researchobjective

Developing the Research plan for

collecting the information

Implementing the Research plan –

Collecting & Analyzing data

Interpreting & reporting the findings



30

Rationale of the research

This report attempts to study the marketing mix keeping in mind the current market

situation. Besides, this report also studies the customer feedback about the coca cola.

Thus it can be said that there are two broad goals of the research i.e. to study the

preferences for coca cola as a whole and other to create a top of mind awareness for coca

cola. The research work was done through the collection of primary data and secondary

data by a common questionnaire through the market survey technique.

Thus; based on our research, we have made some conclusions and suggestions to make

the performance of coca cola amongst all players better.

o As cola drinks are one of the largest used beverage, it will make us clear that

whether the customers are really satisfied with the products or not and what kind

of customer relationship does company prefer with its customers.

o With the help of this project we will be able to draw the clear cut picture of

consumers’ choices and preferences amongst coca cola drinks and its other

substitute products

o This project will help us to understand the organization holistically. Like what the

organization all about and what are it’s divisions and how does it operate its

functions?



31

Chapter-6

Research Objective

OBJECTIVE OF THE STUDY

To study the consumers preferences for Coca Cola.

To study the market potential of Coca cola.

To know the percentage of males and females are aware about coca cola.

To know which brand’s advertisement mostly people have seen.

To know the reason to buy cola drinks.

To know why was the advertisement being noticed by the consumer?

To create a top of mind awareness about COCA COLA by providing the

information to consumers.

Provide an opportunity to Coca cola to frame a good future plan to satisfy

maximum needs of the customers and established its guiding role in the market.

Will also provide an opportunity to delineate its market potential business areas,

products & services are to be offered by the company to the customers.



32

Chapter-7

Research Methodology

In this report description research method is considered, which is to collect data from

extensive market surveys. Going directly to the market & asking customers and

consumers about their beliefs & attitudes about the company and it’s brand, their

experiences with the company, their interest in getting directly linked with the company.

Asking for the delight, if any, they have received from the company or if they have any

dissatisfaction and misconception about the company and clearing their doubts

henceforth.

Hence this method of direct interaction with the customer group & the success of this

method depend up on the accuracy of the information recorded by the surveyor.

The findings of this study are based on the survey conducted by us in areas of east delhi

and Ghaziabad.

Research Design:-

The design which indicates the method of research i.e. Method of information gathering

research instrument used.

Data Collection:-

The data collection is a long & comprehensive process & requires systematic collection

of data about some groups of people or object, the quality of the data will greatly effect

the conclusion and hence utmost importance must be given to this process and every

possible precaution should be taken while gathering the data and assembling the facts.



33

Any research employed is a mixture of primary and secondary data.

Primary Data Collection:-

The Primary data was collected through both participative & non-participative methods-

the technique instruments, which were used are:-

Questionnaire

Personal Interview method is used so that consumers can talk about their

problems freely

Direct Personal Observation

Types of Research:-

The study has been descriptive in nature which includes surveys & fact finding enquiries

of different kinds. The major purpose of this study is the description of the affairs as it

exists at present.

There has been less control over variables. The things reported in project report include

only that which has actually happened & what are happening. The methods of study

include comparative & correlation.

Research Instruments:-

Questionnaire is one of the instruments used for survey. Questionnaire consist of set of

questions presented o respondents for their answers. There are two sets of questionnaires

used & they are:-

Questionnaire consists both the open ended questions that allow respondents to answer in

their own words and also closed ended questions that pre specify all the answers.



34

Sampling Method:-

The method of sampling adopted for research is convenience sampling.

Convenience sampling is one chosen purely for expedience i.e. items are selected because

they are easy & cheap to find & measure. This sampling method help understand the

range of variability of response on the subject area.

Sampling Size :-

We have taken the sample size of 150 people for the research purpose.



35

Chapter-8

DATA ANALYSIS

. GENDER OF THE CONSUMER

Fig 1

Out of 150 consumers, 51% are males and only 49% are females.

51%49%male

female



36

Q-1 Have you ever tasted coca cola drinks?

88% of the male and 97% of the female candidate said that they have tasted coca cola

drinks.

Remaining 12% of the male and 3% of the female candidate replied negatively.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No

Male

Female



37

Q-2 how frequently do you consume cold drink in a week?

20% of male and 30% of female consumes coke 0-2 times in a week.

65% of the male and 45% of female candidate consumes coke 3-5 times a week.

15% of the male and 25% of female candidate consumes coke more than 5 times a week.

0%

10%

20%

30%

40%

50%

60%

70%

0-2times

3-5times

morethan 5

percentage Male

Female



38

Q3- have you seen coca cola drinks add?

93% men and 98% women have seen the advertisements.

7% of the male and 2% of the females gave a negative response to the question.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

yes no

Male

Female



39

Q-4 which drinks’s advertisement you remember the most?

32% men and 61% women prefer coke out of all drinks of coca cola.

69% men and 24% women prefer fanta out of all drinks of coca cola.

19% men and 16% women prefer sprite out of all drinks of coca cola.

21% men and 27% women prefer limca out of all drinks of coca cola.

0%

10%

20%

30%

40%

50%

60%

70%

coke fanta sprite limca

Male Female



40

Q-5 what attracted you the most in the advertisement and caught your interest?

69% men and 46% women remember add because of the creativity and new concept.

51% men and 54% women remember the ads because of the person promoting or

advertising the product.

16% men and 11% women remember the ads because of the message it gives.

20% men and only 9% women remember the ads because of the logical reason behind it.

0%

10%

20%

30%

40%

50%

60%

70%

creativity message

Male Female



41

Q-6 what is the reason you choose coca cola drinks?

________________________________________________

58% men and 64% women choose cola drinks as they are easily available.

65% men and 46% women go for the taste element while choosing their drink.

2% men and 5% women go for the brand and its name.

However, price is a factor for 30% men and 21% women.

0%

10%

20%

30%

40%

50%

60%70%

easy avlb. taste price

Male

Female



42

Q7- Which coca cola drink you buys most?

70% men prefer coke while just 36% women choose coke.

50% of women chose fanta and 14% men go for it.

18% men took sprite and 16% women.

Limca is again chosen by 11% men and only 6% women.

0%

10%

20%

30%

40%

50%

60%

70%

coke fanta sprite limca

Male

Female



43

Q-8 How will you rate the product?

________________________________________________

5% of the male and 11% of the female candidate rate the product as excellent.

42% of the male and 50% of the female candidate rate the product as good.

42% of the male and 33% of the female candidate rate the product as average.

11% of the male and 6% of the female candidate rate the product as bad.

0%

5%

10%

15%

20%

25%30%

35%

40%

45%

50%

Excellent Good Average Bad

Male

Female



44

Q-9 Do you feel any difference between coke& other substitutes available in the market

such as Pepsi, dew etc.?

63% of the male and 67% of the female said that they were able to feel difference

between coke and other substitutes.

16% of the male and 11% of the female said that they were not able to feel difference

between coke and other substitutes.

21% of the male and 22% of the female said that they were indifferent between coke and

other substitutes.

0%

10%

20%

30%

40%

50%

60%

70%

Yes No Indifferent

MaleFemale



45

Q-10 why do you prefer cola drinks over its other drinks?

38% Male and 28% Female considers Brand name while choosing the cold drink.

33% Male and 61% Female considers Taste while choosing the cold drink.

8% Male and 0% Female considers other while choosing the cold drink.

0%

10%

20%

30%

40%

50%

60%

70%

Brand Taste Others

Male Female



46

Q-11 Do you consider that product is safe for your health?

21% of the male and 22% of the female considered the product to be safe for health.

42% of the male and 56% of the female considered the product to be hazardous for

health.

37% of the male and 22% of the female can’t tell whether the product is

safe for health or not.

Q-12 Are you satisfied with the product?

0%

10%

20%

30%

40%

50%

60%

Yes No Can't Say

MaleFemale



47

________________________________________________

50% of the male and 77% of the female said that they were satisfied with the product.

29% of the male and 11% of the female said that they were not satisfied with the product.

21% of the male and 22% of the female said that they can’t tell whether they are satisfied

or not with the product.

Chapter-9

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No Can't say

Male

Female



48

SWOT ANALYSIS

COKE is most popular amongst its users mainly because of its TASTE, BRAND NAME,

INNOVATIVENESS Thus it should focus on good taste so that it can capture the majorpart of the market.

Strengths:-

Superior market logistics makes coke penetration in market much faster and

frequent than other soft drinks.

Effective and efficient salesman

Well established customer links

Healthy financials

Weaknesses:-

Multi channel Conflicts

Delay in redresses of grievances of retailers

Opportunities:-

Almost every man on this earth is a potential consumer & if you give people

beverages they want it at a good (cheap) price, there is no limit to how much they

consume.

Threats:-

Strong Competitors

Chapter-10



49

CONCLUSION AND FINDINGS

61% population chooses cola drinks because of their easy availability and almost

50% go for its good taste.

Mostly consumers remember the advertisement because of the frequency of add

and brand ambassadors, creativity.

It is important to retain the customer by providing them with continuous

improvements and variety pf product. This is easily seen in such a large variety of

drinks that coca cola provides.

Maximum of the public feels difference b/w coke and other substitutes.

An average of 46% of the people considers the product as unsafe for their health.

Since 97% of the sample surveyed was females who have taste coke, it means it is

more popular among females.

An average 55% of the sample population consumes coke 3-5 times a week.

An average of 45% and 36% of population surveyed as good and average

respectively whereas only 8% found it excellent.

An average of 65% of the sample surveyed is satisfied with the product.

The product should be checked for any harmful chemicals. It should not contain

any pesticides or other chemicals.

Chapter-11



50

Limitations of the study

The sample size of customer’s prospects is fairly small & consistent conclusions

cannot be drawn on the information provided.

Satisfaction being a relative term cannot be much commented on as it varies from

individual to individual and only be measured if the respondent has also

experienced the service of a similar organization in a similar sphere.

One major constraint was the small sample size as it may lead to slight

verification in the end result.

And like any other research the limitation of personal bias of respondents limits

the scope of the study.

A few customers were either quite reluctant to part with their precious time or had

problems in attaching weights aid emphasis to different attributes.

Time frame – This survey was conducted within the limited time frame of – 2

weeks.

Customers in refinance cases were in direct contact with the dealers and were

most bothered with getting weights the delivery of the car rather than handling the

delays in availing the finance as it did not directly affect them.

There is bound to be a subjective bias in the results because of inconsistency and

selective perceptions about the opinion of the respondents.

Chapter- 12



51

RECOMMENDATIONS

On the basis of above study following suggestions can be given:

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 and variety of schemes

rather then bring second and repeat same old one. It is always better to be first

than being better.

The company must be aware of and keep at least the latest knowledge of its

primary competitors in market and try to make a perfect anticipated efforts tomeet the same

The company should also use time to time some more and new attractive system

of word of mouth advertisement to keep alive the general awareness in the wholemarket 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..

The visibility of any product plays an important role in making the customer,aware about it and is vital for the growth and development of any product.

For their advertisement they can also introduce a brand ambassador, because most

of the consumers remember advertisement because of their brand ambassador.

A strong watch should be kept on distributors also, because in some cases they arefound to be cheating the retailers and affecting the goodwill of the BRAND.

The product should be checked for any harmful chemicals. It should not contain

any pesticides or other chemicals.

Bibliography:-



52

Books:-

a) Kothari C.R, Research Methodology & Techniques, 2nd edition, New Delhi

wishwa Prakashan Pvt. Ltd. 1997

b) Kotler Philip, Marketing Management, 11th New Delhi Prentice Hall of India Pvt.

Ltd. 2003

c) Cooper Donald R. & Shindler Pamela S, “Business Research Methods”

d) Tata McGraw-Hill Edition Eighth.

e) Schiffman Leon G. & Kaunk Leslie Lazar, “Consumer Behavior” Pearson

Education, Eighth Edition.

f) Marketing Management

Ram swami & Namakumari

g) Statistical Methods

S.P.Gupta

Websites:-

a) www.cocacola.com

b)

www.cocacolaindia.com

http://www.cocacola.com/


http://www.cocacolaindia.com/




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