Acknowledgement

“Gratitude is not things of expression; it is more a matter of

feeling.” There is always a sense of gratitude which one express
for other for their help and supervisor in achieving the goals.
I too express my deep gratitude to each and every one who
has been helpful me in completing the project report
successfully.

First, of all, I am highly thankful to Prof. Dr. S. D.

Ratnaparkhe, Prof. Kharat N. G., for allowing me to pursue my
project

“FEASIBILITY
STUDY OF COCA COLA AS A TOOL FOR
ENTREPRENEURIAL SUCCESS”

My special thanks to Dr. Maturkar V. M. and Prof. Sale S. M.

who encouraged me, properly guided me in each and every
possible way throughout my projects reports.
I also give my regard and sincere thanks to who has devoted their
precious time in guiding me and helping me with it in time.

Mahesh Bhombe

Sign
Seat No: -

3
 TABLE OF CONTENTS

Chapter Subject Page No.

1. Research Objective 6

2. Company Profile 7

3. Comparative Analysis 17

4. Marketing Strategy of Coke 20

5. Data analysis and interpretation 40

6. Research Methodology 59

7. Findings and Analysis 62

8. Limitations of Research 65

9. Field Experience 67

10. Recommendation 68

11. Conclusion 70

12. Annexure 71

13. Bibliography 76

4
 PROJECT OBJECTIVES

FEASIBILITY STUDY
The main objective of my PROJECT is "
OF COCA COLA AS A TOOL FOR
ENTREPRENEURIAL SUCCESS’’

This study also includes the following sub objectives:

 To study the market of Coca-Cola.

 To study the brand image of Coca-Cola.

 To know the effect of promotion activities on customer preference

regarding Coke.

 To identify the loyalty of customer towards Coca Cola.

 To measure the specific reasons for satisfaction and dissatisfaction

level of customer.

5
INTRODUCTION TO

The Coca-Cola Company exists to benefit and refresh everyone it touches.

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 Type Public(NYSE:KO)

brands. The corporate headquarters are in Industry Beverage

Founded 1886, USA
Atlanta, with local operations in over 200
Headquarters Atlanta, Georgia , USA
countries around the world. The Coca-Cola Area served Worldwide
Company began building its global network in Key People Muhtar Kent
(Chairman and CEO)
the 1920s.Coca-Cola system has successfully
Products Coca Cola
applied a formula on a global scale “Provide a Carbonated Soft Drinks
Water
moment of refreshment for small amount of Other non alcoholic beverages
money a billion times a day”.
Employees 92,400 (October 2009)
Website KO.com
When launched Coca-Cola two key ingredients
were cocaine (Benzoyl Methylecgonine) and caffeine. The cocaine was derived
from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola
(the "K" in Kola was replaced with a "C" for marketing purposes Coca-Cola often
referred to simply as Coke (a registered trademark of The
Coca-Cola Company in the United States since March 27,
1944)was invented in May 1886 by Dr. John Stith Pemberton
in Atlanta, Georgia. The name "Coca-Cola" was suggested by

6
Dr. Pemberton's bookkeeper, Frank Robinson. He penned the name Coca-Cola in
the flowing script that is famous today.

Coca-Cola was first sold at a soda fountain in Jacob's Pharmacy in Atlanta by

Willis Venable. 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.
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. The company was formed to sell three main products:
Pemberton's French Wine Cola (later known as Coca-Cola), Pemberton's Indian
Queen Hair Dye, and Pemberton's Globe Flower Cough Syrup.[The Coca-Cola
formula and brand was bought in 1889 by Asa Candler who incorporated The
Coca-Cola Company in 1892.

In 1892 Candler incorporated a second company, The Coca-Cola Company

(the current corporation), 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.CANof Coke first appeared in 1955. 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. 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.In India, Coca-Cola ranked third behind the leader,
Pepsi-Cola, and local drink Thums Up. The Coca-Cola Company purchased
Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India.

7
Coca-Cola was the first commercial sponsor of the Olympic
games, at the 1928 games in Amsterdam, and has been an
Olympics sponsor ever since. Special aluminum bottle designed
exclusively for the Vancouver 2010 Olympic Winter Games Torch
Relay.
This corporate sponsorship included the 1996 Summer Olympics
hosted in Atlanta, which allowed Coca-Cola to spotlight its
hometown.
Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other
competitions organized by FIFA. In fact, one FIFA tournament trophy, the FIFA
World Youth Championship from Tunisia in 1977 to Malaysia in 1997, was called
"FIFA — Coca Cola Cup".
In 2010 it was announced that Coca-Cola had become the first brand to top £1
billion in annual UK grocery sales.

Ingredients

 Carbonated water
 Sugar (sucrose or high-fructose corn syrup depending on country of origin)
 Caffeine
 Phosphoric acid v. Caramel (E150d)
 Natural flavorings

A Can of Coke (12 fl ounces/355ml) has 39 grams of

carbohydrates (all from sugar, approximately
10teaspoons), 50 mg of sodium, 0 grams fat, 0 grams
potassium,140calorie.

Formula of natural flavorings The exact formula of Coca-Cola's natural flavorings

(but not its other ingredients which are listed on the side of the bottle or can) is a
trade secret. The original copy of the formula is held in SunTrust Bank's main vault
in Atlanta. Its predecessor, the Trust Company, was the underwriter for the Coca-
Cola Company's initial public offering in 1919. A popular myth states that only two
executives have access to the formula, with each executive having only half the
formula. The truth is that while Coca-Cola does have a rule restricting access to

8
only two executives, each knows the entire formula and others, in addition to the
prescribed duo, have known the formulation process.

LOGO THE FAMOUS COCA-COLA LOGO WAS

CREATED BY JOHN PEMBERTON'S BOOKKEEPER, FRANK MASON

ROBINSON, IN 1885. ROBINSON CAME UP WITH THE NAME AND CHOSE

THE LOGO'S DISTINCTIVE CURSIVE SCRIPT.

The typeface used, known as Spenserian script, was developed in the mid 19th
century and was the dominant form of formal handwriting in the United States
during that period.

Robinson also played a significant role in early Coca-Cola advertising. His

promotional suggestions to Pemberton included giving away thousands of free
drink coupons and plastering the city of Atlanta with publicity banners and streetcar
signs.

The World’s Most Powerful Brand

Inter brand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1 Brand in
the World, estimated its brand value at $70.45 billion .The ranking’s methodology
determined a brand’s valuation on the basis of how much it was likely to earn in the
future, distilling the percentage of revenues that could be credited to the brand, and
assessing the brand’s strength to determine the risk of future earnings forecasts.
Considerations included market leadership, stability, and global reach,
incorporating its ability to cross both geographical and cultural borders.

From the beginning, Coke understood the importance of branding and the creation
of a distinct personality. Its catchy, well-liked slogans (“It’s the real thing” (1942,
1969), “Things go better with Coke” (1963), “Coke is it” (1982), “Can’t beat the
Feeling” (1987), and a 1992 return to “Can’t beat the real thing”) linked that
personality to the core values of each generation and established Coke as the
authentic, relevant, and trusted refreshment of choice across the decades and
around the globe.

9
 MANIFESTO FOR GROWTH

 To Refresh the world………..In body, mind and spirit.

 To Inspire Moments of Optimism….Through our brands and our actions.
 To Create Value and Make a Difference….Everywhere we engage.

To achieve sustainable growth, we have established a vision with clear goals.

Profit Maximizing return to shareowners while being mindful of our overall
responsibilities.
People Being a great place to work where people are inspired to be the best they
can be.
Portfolio Bringing to the world portfolios of beverage brands that anticipate satisfy
peoples; desires and needs.
Partners Nurturing a winning network of partners and building mutual loyalty.
Planet Being a responsible global citizen that makes a difference.

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

10
Two types of bottlers:
A) FOBO – Franchised owned bottling operations.
B) COBO – Company owned bottling operations.

Franchised production model

In 1899, it franchised its bottling operations in the U.S., growing quickly to reach
370 franchisees by 1910.The company operates a franchised distribution system
dating from 1889 where The Coca-Cola Company only produces syrup concentrate
which is then sold to various bottlers throughout the world who hold an exclusive
territory.
The company produces concentrate, which is then sold to licensed Coca-Cola
bottlers throughout the world. The bottlers, who hold territorially exclusive contracts
with the company, produce finished product in cans and bottles from the
concentrate in combination with filtered water and sweeteners. The bottlers then
sell, distribute and merchandise Coca-Cola to retail stores and vending machines.
Such bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola
bottler in North America and Western Europe. The Coca-Cola Company also sells
concentrate for soda fountains to major restaurants and food service distributors.

In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces

(or produce) syrup concentrate which is then sold to various bottlers throughout the
world who hold a Coca-Cola franchise. Coca-Cola bottlers, who hold territorially
exclusive contracts with the company, produce finished product in cans and bottles
from the concentrate in combination with filtered water and sweeteners. The
bottlers then sell, distribute and merchandise the resulting Coca-Cola product to
retail stores, vending machines, restaurants and food service distributors.

One notable exception to this general relationship between TCCC and bottlers is
fountain syrups in the United States, where TCCC bypasses bottlers and is
responsible for the manufacture and sale of fountain syrups directly to authorized
fountain wholesalers and some fountain retailers.

The Coca-Cola Company only produces a syrup concentrate, which it sells to

bottlers throughout the world, who hold Coca-Cola franchises for one or more
geographical areas. The bottlers produce the final drink by mixing the syrup with
filtered water and sweeteners, and then carbonate it before putting it in cans and

11
bottles, which the bottlers then sell and distribute to retail stores, vending
machines, restaurants and food service distributors.

The Coca-Cola Company owns minority shares in some of its largest franchises,
like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic Bottling
Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers produce
almost half of the volume sold in the world. Independent bottlers are allowed to
sweeten the drink according to local tastes.

The bottling plant in Skopje, Macedonia, received the 2009 award for "Best Bottling
Company".

Indian History
India is home to one of the most ancient cultures in the world dating back over
5000 years. At the beginning of the twenty-first century, twenty-six different
languages were spoken across India, 30% of the population knew English, and
greater than 40% were illiterate. At this time, the nation was in the midst of great
transition and the dichotomy between the old India and the new was stark.
Remnants of the caste system existed alongside the world’s top engineering
schools and growing metropolises as the historically agricultural economy shifted
into the services sector. In the process, India had created the world’s largest
middleclass, second only to China.

A British colony since 1769 when the East India Company gained control of all
European trade in the nation, India gained its independence in 1947 under
Mahatma Ghandi and his principles of non-violence and self-reliance. In the
decades that followed, self-reliance was taken to the extreme as many Indians
believed that economic independence was necessary to be truly independent. As a
result, the economy was increasingly regulated and many sectors were restricted
to the public sector. This movement reached its peak in 1977 when the Jantaparty
government came to power and Coca-Cola was thrown out of the country.

In INDIA

12
Coca-Cola was the leading soft drink brand in India until 1977 when it left rather
than reveals its formula to the government and reduces its equity stake as required
under the Foreign Exchange Regulation Act (FERA) which governed the
operations of foreign companies in India. After a 16-year absence, Coca-Cola
returned to India in 1993, cementing its presence with a deal that gave Coca-Cola
ownership of the nation's top soft-drink brands and bottling network. Coke’s
acquisition of local Popular Indian brands including Thums Up (the most trusted
brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical
manufacturing, bottling, and distribution assets but also strong consumer
preference. This combination of local and global brands enabled Coca-Cola to
exploit the benefits of global branding and global trends in tastes while also tapping
into traditional domestic markets.
Leading Indian brands joined the Company's international family of brands,
including Coca-Cola, diet Coke, Sprite and Fanta, plus the Schweppes product
range. In 2000, the company launched the Kinley water brand and in 2001, Shock
energy drink and the powdered concentrate Sunfill hit the market. While The Coca-
Cola Company is a global company with some of the world's most widely brands,
the Coca-Cola business in India, as in each country where it operates, is a local
business.
After a 16-years absence, Coca-Cola returned to India in 1993. The Company's
presence in India was cemented in November that year in a deal that gave Coca-
Cola ownership of the nation's top soft-drink brands and bottling network. Coca-
Cola India has made significant investments to build and continually improve its
business in India, including new production facilities, wastewater treatment plants,
and distribution systems and marketing equipment

 During the past decade, the Coca-Cola system has invested more than US$ 1
billion in India

 Coca-Cola is one of the country's top international investors by2003; Coca-Cola

India had won the prestigious Woodruff Cup from among 22 divisions of the
Company based on three broad parameters of volume, profitability, and quality.

 In 2003, Coca-Cola India pledged to invest a further US$100 million in its

13
 operations

 In India, we indirectly create employment for more than 125,000 people in related
industries through our vast procurement, supply and distribution system

 Virtually all the goods and services required to produce and market Coca-Cola
locally are made in India

 The Coca-Cola system in India comprises 27 wholly-owned company-owned

bottling operations and another 17 franchisee-owned bottling operations.

 A network of 29 contract-packers also manufactures a range of products for the

Company

 The complexity of the Indian market is reflected in the distribution fleet, which
includes 10-tonne trucks, open-bay three-wheelers that can navigate the narrow
alleyways of Indian cities, and trademarked tricycles and pushcarts.

 The complete manufacturing process had a documented quality control and

assurance program including over 400 tests performed throughout the process.

14
  We will collaborate creatively with those who sell our products in the
marketplace, developing relationships built on mutual success, not only from our
brands, but also from our services.

 Ranking: We own 4 of the world’s top 5 non-alcoholic sparkling beverage brands:

Coca-Cola, Diet Coke, Sprite and Fanta.

COKE BRANDS IN INDIAN ORIGIN

COCA-COLA:

Developed in a brass pot in 1886, Coca-Cola is the most

recognized and admired trademark around the globe. Not to

mention the best selling soft drink in the world.

SPRITE: In 1961, a citrus-flavored drink made its U.S.

debut, using "Sprite Boy" as inspiration for its name. This elf

with silver hair and a big smile was used in 1940s

advertising for Coca-Cola. Sprite is now the fastest growing

major soft drink in the U.S., and the world's most popular

lemon-lime soft drink.

FANTA:

15
The name "Fanta" was first registered as a trademark in Germany in 1941, when it

was used for a few years for a soft drink created from available materials and

flavors.

The name was then revived in 1955 in Naples, Italy, when it was used for the

"Fanta" orange drink we know today. It is now the trademark name for a line of

flavored drinks sold around the world.

DIET COKE:

The extension of the Coca-Cola name began in 1982 with

the introduction of diet Coke (also called Coca-Cola light in

some countries). Diet coke quickly became the number- one

selling low-calorie soft drink in the world.

VANILA:

It is an Ice Cream in taste. Launched in 2004.

LIMCA:

This is thirst-quenching beverage features a fresh and light

lemon-lime taste and a lighthearted attitude. The Limca

brand was introduced in 1971 and acquired by the Coca-

Cola Company in 1993.

MAAZA :

Maaza, launched in 1984 and acquired by The Coca-Cola

Company in 1993, is a non carbonated mango soft drink

with a rich, juicy m natural mango taste.

16
 THUMPS UP :

In 1993, The Coca-Cola Company acquired this brand,

which was originally introduced in 1977. Its strong and fizzy

taste makes it unique carbonated Indian Cola.

KINLEY WATER:

This is thirst-quenching beverage features fresh the fresh

water with the saturated oxygen level.

SUNFILL:

This is thirst-quenching beverage features a fresh and light

orange taste and a lighthearted attitude.

VISION

 The long-term vision of Coca-Cola in India is to provide exceptional strategic

lead to the Coca-Cola in India.

 Through Coca-Cola system resulting in consumer & customer preference

and loyalty through Coca-Cola is commitment to them and in a highly

profitable Coca-Cola Corporate branded beverage system.

MISSION

The mission of coca cola in India is:

17
  Increase in shareholder's value over time.

 To achieve the above by working with business partners to deliver

satisfaction and value to customers and consumers through world wide

system of superior brand and services thus increasing the brand equity.

 To achieve the mission the company seeks the contribution from each of the

given areas:

 People working in the company.

 Commitment of the company.

 Goals & objectives of the company.

 Environmental policy.

 Internal control.

 Policy & producers.

BRINDAWAN BEVERAGES LTD.

In the network of the Coca-Cola system, Coca-Cola has either of the two

bottling operation done far the company.

1. COBO (Company Owned & Operated Bottling Operation).

2. FOBO (Franchise Owned & Operated Bottling Operation).

After 1993, when coca cola re enters Indian market, done a lot of changes in

the existing system of the soft drink market prevailing in India, by acquiring the

major brands and the bottling operations from Parle. After this company founded

some of its own bottling operation in India.

In year 1997, company did a major investment of $700 million in India by

purchasing other bottling operations, all around India and introduces new

technology in them. These bottling plants are called Company Owned and
18
Operation Bottling Operation. Company has full ownership and operational right for

these type of operations. The other type of bottling operation for the company are

called Franchise Owned and Operated bottling Operation, to these, the company

has given the right to produce the product for the company and to supply with in

the territory assigned by the company. Company has no ownership or operational

right/control over these.

19
In India Company have 26 COBO and 14 FOBO operations for the production and

control of the whole operation in India. These are divided in to various zones that

are given in the marketing mix section of this report.

20
 "COMPARATIVE ANALYSIS OF COKE & PEPSI"

Coca-Cola being 11 years older than pepsi has dominated the scene in most of the

soft drink markets in the world and enjoying leadership in terms of market share.

but the coca-cola people are finding it hard to keep away pepsi, which has been

narrowing the gaps regularly. the two are posing threats to each other in every

nook and corner of the world. while coca-cola has been earning most of its bread

and butter through beverage sales, pepsi has a multi products portfolio with some

portion from the same business.

The two warriors are face to face once again here in India with different strategies

and tactics to attack the rival. Coca-cola is focusing upon the joint ventures with the

existing bottlers { fobo } franchise owned bottling operations to enhance its control

on manufacturing and marketing of its products range and attain the quality

standards of its class.

Countering it Pepsi has taken the battle in its own hands by floating as investment

of $ 95 billion to set Pepsi Company. India holdings, as subsidiary for { cobo }

company owned bottling operations. Both the companies are following different

path to reach the same destiny i.e. to fetch the bigger portion of aerated soft drink

market. both consider India a huge potential market, as per capita consumption

here is a mere 3 serving annually against the world average of 80. therefore, they

are putting in their best efforts to woo the Indian consumer who has to work for 1.5

hours to buy a bottle of soft drink. in comparison to the international norms

minutes, a major hurdle to cross over for both the athletes for getting no.1 position
21
comparison to the inter. coca-cola is well set with its 53 bottling sites through out

the country giving it an edge over competition by processing a well-built bottling

and distribution set-up. on the other hand, Pepsi, with two more years in India, has

been able to set an image of a winner in India and has been able to get the pulse

of the India soft drink market. the soft drink giants are leaving on stone unturned

and her for the long terms.

Coca-Cola has been penetrating the market through its wide product range with a

determination to change consumption pattern of soft drink in India. firstly, they

upgraded the whole industry by introduction 300 ml bottles, which in turn had given

the industry a booming growth of 20% as compared to the earlier 5%. they want to

develop a coca culture here and are working on a strategy to offer soft drink in

every possible package. in coca-cola camp, the idea of competition has not come

from pepsi, but from the other beverages such as tea, coffee, nimbu pani, water

etc. pepsi is quite aggressive in its approach to Indian consumer. they are

desperately working on the strategy to be winners in the hot cola war between two

big barons. according to pepsi philosophy, it’s the madness that encourages

executive to think, to conjure up those creative tactics to knock the fizz out their

competition. pepsi had plumbed a large on the visibility of its blue red and white

logo. they have been going with aggressive marketing by putting Amir khan,

Akshay Kumar and their advertisement to endorse their brand, the role models for

its targeted consumer the teenagers. They have increased the fizz in the market

place by introducing the dispensers called fountain Pepsi and has been enjoying a

lead over its rival there. Coca-Cola on the other hand, has been working on the

saying slow and steady wins the race’s side by retailing to every more of its

competitor. They have procured the shield of thums up with a handsome market

share in Indian soft drink market.

22
Countering pepsi’s international commercial that used two chimpanzees to cock a

snoop at coke, thums up come with the ad line, don’t be bandar, taste the thunder.

also thums up has been positioned now very near to that young image of Pepsi

and giving it a though time.

These cool merchants have put everything on fire. it coke got the status of

the official drink of wills. world cup, pepsi blushed as nothing official about it. as

thums up projected as ‘saaree jahan se achcha’ pepsi was passionate enough with

‘freedom to be’ and now the “yeh dil mange more” when thums up came with

thunder blast, the other offered ‘pepsi stuff card’. if red is meant for coke, pepsi has

chosen to be blue.

Marketing Mix and Strategy Of Coke

Marketing mix of any organization consists of 4 P's i.e. product, price, place

and promotion having its own significance, which varies from one organization to

the other. In Coca-Cola the information about all the 4 P's that can be available to

me is given here:

PRODUCT: Product mix of Coca-Cola consists of the various brand packs and

flavors given in the table. Product strategy of the Coca-Cola is to promote all the

brands available in all the brands packs and to introduce the product in new flavors

and. even new product. Regarding this Kinley soda is introduced. Fanta in green

apple flavor is also introduced.

PRICE: Regarding the pricing policy or the price to the distributor is not disclosed

to me, but as done for the different product of the company, company has priced

the product same as that of its major competitor or the market leader.

23
PLACE: The Coca-Cola Company in India is governed from its corporate office

located at Gurgaon in Haryana. It governs the working of five zones covering whole

India these zones are: - Northern zone, Eastern zone, Western zone, Southern

zone and Andhra Pradesh zone. These zones are divided in to various, plants,

which govern the area assigned to them. The areas are the various distribution

centers called distributors and C&F agents. Then comes the retailers/customer for

the company's product, they receive goods from distributors and C&F agents.

Finally consumer is there, having the product from the customer's shops or

delivered to their home, it is more clearly visible through this chart. The Coca-Cola

Company, which gave its reach to the mouth of billions of people all around the

world having a wide distribution, network. In India, the pace and speed at which

Coca-Cola has widened its business is really amazing. Distribution network is the

biggest strength of the company.

PROMOTION: This part of the marketing is playing a very vital and important role

in the current situation in India. Looking at the competition and promotion and

advertising budget of both the companies coca cola and Pepsi, one can easily

estimate the importance of this.

BRANDING

What is a brand ?

A brand is name, term, sign, symbol or design or a combination of them which

is intended to identify the goods or services of one seller or group of sellers and

to differentiate them from those of competitors. A Trade mark is "a brand or a

part of brand that is given legal protection because it is capable of exclusive

appropriation."

24
 Manufacturers can use their own brands (known as Manufacturers' brands)

or brands of their distributors (Distributors' brands).

Why branding?

Manufacturers/ distributors use brand names for a variety of reasons from

simple identification purposes to having legal protection for unique features of the

products from imitations and help consumers recognize certain quality parameters.

In some cases, brands are just used to endow the product with unique story and

character which itself can be a basis for product differentiation.

Special importance of brands for soft drink products

While brands can represent all types of goods or entities, they have special

importance for products. Brand equities are stronger in soft drink products as the

consumer is reluctant to try unknown brands/ unbranded products for the following

reasons

 These products individually account for a small part of household spending.

 Most of these products are for personal use.

 In many cases, it is difficult to differentiate a product on technical or

functional grounds and therefore the consumer is reluctant to switch to an

unknown brand.

 Successful brands generate strong cash flows, which enable the owner of

the brand to reinvest a part of it in the form of aggressive advertisements/

promotions. This reinforces the perceived superiority of a brand.

25
VALUATION OF BRANDS :

Value of a brand is represented by the incremental cash flow resulting from a

product with a brand versus a product without a brand name or with weaker brand

name. Brand valuation is a complex process and involves a lot of subjectivity.

There are no widely accepted techniques of brand valuation. There are several

considerations which cannot be standardized or quantified such as

 To pre-empt competition from taking over a brand

 Synergy with the company acquiring existing brands/ businesses

 Strategic entry into a new product category

 Prevent damage to existing brands. Many a times stiff competition results in

price cutting, aggressive promotions, lower margins for all the competing

brands.

 Confidence in the acquirer of the brand to rejuvenate a languishing brand.

3. DISTRIBUTION :

Marketing or Distribution channel refers to the set of marketing

intermediaries which manufacturer's link together to reach their products to the

ultimate consumers. Depending on the product, nature of market and

manufacturers' resources/strategy, there can be one or more links between the

manufacturer and consumer.

Manufacturer – Retailers

Manufacturer - Wholesalers – Retailers

Manufacturer - Stockiest - Wholesalers - Retailers.

26
RETAILING :

In India, there are over 5 million retail outlets dispersed all over the country.

The retailing industry provides employment to over 18mn people. 1 out of every 25

families in India is engaged in the business of retailing. Ownership and

management are predominantly family controlled. However in sharp contrast to

developed countries, unit average size of a retail outlet in India is very small.

Organized retailing, however, has been a recent phenomenon and is

relatively undeveloped. There are no large super market chains/ shopping malls.

Consumers are unwilling to pay a premium for convenience shopping as their

counterparts in the western countries do. While small chain stores called Apna

Bazaars and Sahakan Bhandaars, which offer products at reasonable prices, have

been fairly popular, Department Stores and Food Stores are slowly gaining

popularity. A large number of corporate have recently ventured into retailing.

The retail outlet in India can be broadly categorized as follows:

- Grocery stores

- General purpose stores

- Food stores

- Pan bidi shops

- Chemist/ drug stores

- Cold chains

The relative share of grocers dropped from over 50% in the early 90's to

35% in the late 90's. Chemist outlets on the other hand, have been expanding their

product range to include high margin FMCG products from shampoos to ketchup.

Pan-wallas are also emerging as full fledged consumer product outlets.

27
 Themes for Coca-Cola Advertising

Themes for Coca-Cola Advertising (1886-1999)

1922 1924

Thirst Knows No Season

Refresh Yourself
1925 1926

It had to be good to get where it is

Six Million a Day
1927 1929

The Pause That Refreshes

Around the Corner from

Everywhere

28
 1935

Friends For Life

1939 1942

Thirst Asks Nothing More

The Only Thing Like Coca-Cola is
Coca-Cola Itself
1948 1949

Where There's Coke There's Along the Highway to Anywhere

Hospitality

29
 1952 1957

What You Want Is a Coke

Sign of Good Taste

1958 1959

Be Really Refreshed
The Cold, Crisp Taste of Coke

1963 1969

It's the Real Thing

Things Go Better with Coke

30
 1974 1975

Look Up America

Look Up America
1976

Have a Coke and a Smile

Coke Adds Life

1978 1979

31
 1995 onwards

MARKETING

Direct marketing : In direct marketing manufacturers reach the consumers

directly. Direct marketing can be undertaken in several ways such as mail order,

own retail outlets, mobile vans etc. A new innovative approach to direct marketing

viz multilevel marketing is becoming increasingly popular. Also gaining ground

slowly is E-tailing i.e. selling products through the internet.

32
Market Research

Market research activities encompass studies on:-

- market characteristics

- measurement of market potential and size,

- market share analysis,

- competitive products,

- new products acceptance/ product preference,

- sales (region wise, consumer wise etc) analysis,

- short/ long term sales forecasting,

- advertisement effectiveness

- post-shipment data (actual shipment by manufacturers),

- retail stores audit (actual sales at sample outlets)

- trade feedback and distribution,

- Brand recall, point of sale material etc.

It requires skilled people for data collection as well as analysis. Several

large consumer companies have in-house MR department. Most others retain

specialized and professional MR agencies. The significance of market research

has increased considerably in the recent times as

- Size of operations of major players has increased to national and

international markets.

- Marketing executives are physically away from the market and hence the

need for flow of information.

33
 - In the environment of increasing competition and multiple products

competing for consumers' preference information about the market has

tremendous utility.

- Information is required for segmenting the market and appropriate pricing

and positioning of the products.

Market research approach :

Typically, a market research activity involves the following 5 steps,

Problems definition This forms the basis of research and failure to identify

the problem precisely will result in finding a correct solution for a wrong

problem.

Research design: The next step is to set out objectives of research

clearly, determined data collection methods to finalize research instruments and

sampling plan.

Field work: After finalization of research design, the actual data collection

begins. It can be done by the agency on its own or through subcontracting to third

parties. Data is collected by questionnaires/ direct interviews, telephonic interviews,

simple observation etc.

Data analysis: The next step forms the heart of research activity. It

involves extracting meaningful information from the data collected and analyzing

the information statistically and also from business perspective. Statistical

techniques include simple/ multiple linear programming models, time series,

exponential series, regression analysis, simulation, Marko chain process etc.

34
 Report preparation: The final step is to prepare a report, present major

findings in a manner amenable to managerial decision taking. There may be some

follow up and revalidation required.

TEST MARKETING :

Test marketing refers to testing out product and marketing mix with a small

number of well chosen consumers which are representative of the target segment.

Test marketing is frequently used by consumer companies, in contrast to industrial

companies which prefer feedback through informal channels. Test marketing

improves knowledge of target consumers, potential sales and is an effective tool to

pre-test alternative marketing plan. In most products, it is important to check trial

rates as well as re-purchase rates.

CONSUMER'S PANELS :

Consumer panels refer to a set of consumers with different demographic

characteristics (so as to be representative of target population) who agree to co-

operate in market research, typically for a consideration. Market research agencies

and companies try to collect information on buyer's characteristics by introducing a

new product to the consumer panels. The firm estimates trials as well as the repeat

purchasing by this method. There are statistical models to forecast market shares,

demand, brand switching etc.

7. ADVERTISING AND PROMOTION :

Advertising consists of non-personal form of communications. The communication

is conducted through trade media under player sponsorships. Advertising aims at

providing information about the product arouse demand for the product and
35
emphasize on superior features of the advertised product over others. Players

have to decide on overall advertisement budget, message and mode of

presentation, type of media, timing etc. They invariably do post audit of advertising

efficacy.

Promotions are of two type’s viz. pull promotions where consumers are

incentivized and push promotion where dealers/ retailers are incentivized. There

are several forms of promotion such as distributing free samples, discount

coupons, gift offers for consumers and target based incentives and display

schemes etc for retailers. Marketers also sponsor charity programs, sports etc to

promote corporate/ brand image.

DISTRIBUTION MANAGEMENT

Distribution management is a logistics control process that applies

situational understanding from both the operational and logistical common

operating pictures in order to dynamically control and synchronize the flow of

materiel through the distribution pipelines, including retrograde and lateral

distribution. The last part of the definition - retrograde and lateral distribution - is

critical to future success and is often overlooked in distribution management

schemes. Our ability to move materiel in any direction through the pipelines

provides an economy of effort that actually becomes a force multiplier. In this

manner, distribution management becomes a key enabler of logistics

transformation, by reducing materiel requirements to only those that are needed

and by leveraging stock age positioning to reduce the total cost of sustainment.

Distribution Management: - When you're operating multiple plants over a

large geographical area, knowing exactly what you have and where it's located can

36
be a tremendous competitive advantage. Frontier's Distribution Management

components allow you to access real-time inventory and shipping information

across your enterprise, as well as historical audits that can help with planning for

the future. With Frontier, you'll always know your inventory requirements and

availability for every product, at every plant. You can instantly find transit status for

parts and finished goods. Frontier helps you plan more efficient truck loading and

shipping routes. You'll also enjoy shipping and billing that is tightly integrated from

the initial sale through Accounts. A definition of dynamic control is also required

before we go further. Dynamic control is the distribution manager's ability to rapidly

set and change priorities and modes of transportation in response to the war

fighter's requirements. If Quartermasters cannot dynamically control the delivery of

supplies and materiel, we remain at the mercy of the transportation system and will

be forced into the comfort and expense of a stock age-based supply system.

DISTRIBUTION MANAGEMENT PRODUCT MODULES

Advanced Forecasting

Advanced Pricing

Advanced Stock Valuation

Agreement Management

Bulk Stock Valuation

Enterprise Facility

Planning Inventory Management

37
DAILY SHIPPING ACTIVITIES AT COCA-COLA

BSR-(Bonded storage area)

1. Daily report

2. Physical stock verification

3. Full movement report

4. RG 1

5. Leakage and Breakage Report

6. Stock covered with tarpaulin

7. Shipping office house keeping

EMPTY

1. Check for pending ERA

2. Breakage report

3. Physical stock verification

4. Breakage handing over to store

5. House keeping of empty yard

38
 PRODUCT RANGE

Flavour Ingredients Pack Product Company

Cola Cola Flavour 200Ml. Coke, Coca-Coal

carbonated water 300Ml. Thumsup

sugar 500Ml.

1.5 Litre

2 Litre Pepsi Pepsi

Orange Orange Flavour + 200Ml. Fanta Coca-Cola

Carbonated Water+ 300Ml.

Sugar 500Ml.

1.5 Litre

2 Litre Mirinda Pepsi

Fruit Juice Mango Pulp+ 250 ML Maaza Coca-Cola

Treated water+

sugar Slice Pepsi

Cloudy Lemon Flavor + 200Ml. Limca Coca-Cola

Lemon Carbonated Water+ 300Ml.

Sugar 500Ml.

1.5 Litre

39
 2 Litre Mirinda Lemon Pepsi

Clear Lemon Lemon Flavour+ 200Ml. Sprite Coca-Cola

Carbonated Water + 300Ml.

Sugar 500Ml.

1.5 Litre 7’Up

2 Litre Dew Pepsi

40
 DATA ANALYSIS AND INTERPRETATION

TABLE NO. PAGE NO.

1. PREFER TO HAVE COLD DRINKS 40

2. DO YOU LIKE COLD DRINKS? 41

3. CONSUMPTION OF COLD DRINKS IN A DAY 42

4. PREFERENCE OF FLAVOURS 43

5. PREFERENCE OF BRAND NAME 44

6. FACTOR INFLUENCES CHOOSING PARTICULAR BRAND 45

7. OPINION TOWARDS POPULAR BRANDS 46

8. AVAILABILITY IN RETAILER’S SHOP 47

9. AVAILABILITY IN COLLEGE CANTEEN/LOCALITY/COLONY 48

10. OPINION TOWARDS TASTE 49

11. IN CITRIC FLAVOURED? 50

12. IN ORANGE FLAVORED? 51

13. IN MANGO FLAVOUR 52

14. CAUSES OF CHOOSING BRANDS 53

15. MOST APPEALING BRAND ADVERTISEMENT 54

16. MOST APPEALING BRAND PUNCH LINE 55

17. OPINION TOWARDS PRODUCT 56

18. OPINION TOWARDS PRICING STRATEGY 57

41
Table- I

Prefer to have cold drinks

Response No of Respondent Percentage ( %)

Yes 100 100%

No 00 00%

Total 100 100%

Analytical Interpretation:

The given Chart & Table show that the most no. of respondent like to take

cold drink because it gives the full satisfaction in the hot and humid day. It was

found that 100% of respondent likes to take the soft drinks and 00% respondents

don’t want to take cold drinks. The people who don’t prefer are because of their

taste and preference. They are of the perception that Lassie and Nimbu pani are

beneficial than the carbonated soft drinks.

42
Do You Like Cold Drinks?

RESPONSE NO. OF RESPONDANT PERCENTAGE

YES 100 100%

NO 00 00%

TOTAL 100 100%

100% 0% Yes

No

Analytical Interpretation:

The given Chart & Table show that the most no. of respondent like to take cold

drink because it gives the full satisfaction in the hot and humid day. It was found

that 100% of respondent like to take soft drinks and 00% respondent don’t want to

take cold drinks. The people who don’t prefer are because of their taste and

preference. They are of the perception that Lassie and Nimbu pani are beneficial

than the carbonated soft drinks.

43
Consumption of cold drinks in a day

Response
No of Respondent Percentage (%)
(Time a day)

Less than 2 54 54%

2–4 35 35%

More than 4 + 11 11%

Total 100 100%

54
60

50
35
40

30
11
20

10

0
Less than 2 2–4 More than 4 +

Analytical Interpretation:

The given diagram & table show the frequency of taking cold drinks in

a day. It was found that 54% of respondent takes the less than 2 cold drink a day,

35% of respondent takes 2 – 4 cold drinks a day. And 11% of the respondent likes

to takes more than 4 cold drinks in a day. The people who consume more than two

cold drinks have a habit of a high consumption. For them a change in price doesn’t

changes their demand to a great extent. They also maintain a brand loyalty in the

brand they are regularly consuming.

44
Preference of flavors’

Flavour No of Respondent Percentage

Cola 41 41%

Citric 26 26%

Lemon 21 21%

Orange 10 10%

Others 02 02%

Total 100 100%

45% 41%

40%
35%
26%
30%
21%
25%
20%
10%
15%
10%
2%
5%
0%
Cola Citric Orange Lemon Others

Analytical Interpretation:

The given graph & table show the most popular flavour in cold drinks is

Cola. It was found that the 41% respondent likes the Cola Flavored, 21% of

respondent likes the Lamon flavored, 26% of respondent likes the citric flavour,

10% likes the Orange flavour and only 2% likes the other flavored.

45
Preference of Brand name

Response No of Respondent Percentage (%)

Yes 56 56%

No 39 39%

Can’t Say 05 05%

Total 100 100%

5%

39% Yes

56% No

Can’t Say

Analytical Interpretation:

The graph & table clear view regarding the importance given to a brand

name while choosing the cold drinks. It was found that the 56% of Respondent

says Yes and 39% of respondent say No and the only 5% of respondent not in

a position to say anything.

46
 Factors Influences choosing particular Brand

Response No of Respondent Percentage (%)

Brand 28 28%

Flavour 48 48%

Advertisement 06 06%

Chilled 18 18%

Total 100 100%

Analytical Interpretation:

The chart and diagram shows that the way respondent likes the particular brand of

cold drinks. It was found that 48% of respondent likes the because of flavour, 28%

respondent likes the cold drinks because of brand, 18% of respondent likes

because of chilled and only 6% of respondent likes because of advertisement.

47
Opinion towards Popular Brand

Brands No of Respondent Percentage (%)

Coke 58 58%

Pepsi 21 21%

Others 21 21%

Total 100 100%

60%

50%

40%

30% Series1

20%

10%

0%
Coke Pepsi Others

Analytical Interpretation:

The given diagram gives the view regarding the most popular and demanded

brand. It was found that the 58% of respondent preferred the Coke as most popular

brand, 21% of respondent say Pepsi as most popular brand, 16% of respondent

referred the coke as the popular brand and the only 21% of respondent say others

was a the most popular brand.

48