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Final Project

On

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE


DEGREE OF MBA, GGSIP UNIVERSITY, DELHI
(2004 2006)
AT
BLS INSTITUTE OF MANAGEMENT
Submitted By:
VIVEK BANSAL
Batch 2004-2006
Roll no.- 0091173904

ACKNOWLEDGEMENT
I acknowledge my profound gratitude and immense respect
towards Mr. Kuldeep Kaul(Lecturer, BLSIM) for his guidance
and encouragement, which helped me immensely in making this
project a reality, without whose keen interest and constant
encouragement it would not have been possible to complete this
project.
I also express my sincere thanks to Dr. Ajay Kumar and all
the other faculty members of BLS Institute of Management for
the useful help provided in completion of this project.

VIVEK BANSAL
MBA Marketing (2004 2006)
BLS Institute of Management
Mohan Nagar, Ghaziabad.
Guru Gobind Singh Indraprastha University
Kashmere Gate, New Delhi.

Table of Contents
TITLE
SECTION 1 6 - 16
Categories of Non Alcoholic Beverages
Market size of beverage industry
Category wise analysis of beverage industry
Carbonated Soft Drinks-Growth Trends
CSD- Market Share Analysis
Fruit Juices- Market Share Analysis
Packaged Water- Market Share Analysis

PAGE NO.
7
8
9
11
12
13
16

SECTION 2 17 - 36
Brief About Coca-Cola
Coca-Cola Beverages
Brief About Pepsi
Pepsi Beverages 36

19
26
31

SECTION 3 37 - 52
Consumer Research
(Youngsters & Housewives)
About The Sample
Questionnaire 39
Research Findings and Analysis

37
38
41

SECTION 4 53 - 57
Changing trends in Soft Drink industry
54
Changing Patterns in Consumer Buying Behavior 55
Recommendations For Coca-Cola
56

ANNEXURE 58 - 60
Research Methodology
Bibliography

59
60

OBJECTIVE
A comparative analysis of Beverage (soft
drinks) Industry with special reference to CocaCola

Scope of Study: Overview


and analysis of overall nonalcoholic beverage industry.
Identifying influencing factors and buying
behavior of consumers.

SECTION 1
CONTENTS.

Overview of Non Alcoholic Beverages


Industry
Market Size of Beverages
Category wise analysis of Beverages
Market Share Analysis of various Brands

Non-Alcoholic Beverages
CATEGORIES: Non Alcoholic Beverages are
categorized in three types :

Carbonated Soft Drinks


Fruit juices
Packaged water

MARKET SIZE OF BEVERAGES

Source: ORG MARG

Category Wise Analysis Of Beverages


Carbonated Soft Drinks
Fruit Juices
Packaged Water
CARBONATED SOFT DRINKS
History of Soft Drinks:
Soft drinks can trace their history back to the mineral water
found in natural springs. The first marketed soft drinks (noncarbonated) appeared in the 17th century. They were made from
water and lemon juice sweetened with honey. In 1767, an
Englishmen, Dr. Joseph Priestley, created the first drinkable
manmade glass of carbonated water.

CARBONATED SOFT DRINKS

COKE PEPSI

MARKET SIZE GROWTH TREND OF


CARBONATED SOFT DRINKS MARKET

Soft Drink Market has grown at the rate of


12%
Market size for the year 2005-06 is Rs.
7000 crores
Source:- Francis Kanoi Market Research

CARBONATED SOFT DRINK MARKET


SHARE

Coke is clearly the leader in carbonated soft drink industry


with an overallall market share of 61%.
Market share of Coke is inclusive of market share of all its
CSD brands(eg. Thums-up, Limca, Sprite etc.)
Source: AgencyFaqs.com

FRUIT JUICE
Fruit Juice is categorized as:Packaged Juices Real, Tropicana etc.
Fruit Drinks Mazza, Slice, Frooti etc.
MARKET SIZE OF FRUIT JUICE
INDUSTRY
Total Market Size of Fruit Juice Segment Rs.
450 crores Source:- Hindu Business Line

Packaged Juices Market Share of Various


Brands

Packaged Juices market is growing rapidly.


Daburs Real brand leads the Packaged Juices
Segment with 57% share.
Pepsis Tropicana is a close competitor with
35% share.
Coke is non-existent in the Packaged Juices
segment.
Source:- Hindu Business Line

Reasons For The Rise In Fruit Juice


Market

Introduction of tetrapaks offers a solution to


provide fruit juice practically fresh and
preservative free.
The pesticide controversy has benefited the
fruit beverage industry.
The proliferation of supermarkets and malls in
metros and mini-metros, added the growth story
as well.

The income factor has also benefited the fruit


juice market.
The different pack sizes
companies are offering.

that

different

Packaged Water Market Share OF Various


Brands

Packaged Water Market is growing at the rate


of 30 - 40%.
Bisleri clearly leads the Packaged Water
segment with a Market Share of 45%.
Coca-Colas Kinley is a laggard in Bottled
Water segment with only 8% share.
Source:- Asian Age, Economist Intelligence Unit

SECTION 2

CONTENTS:Brief about Soft Drink Majors (Coke and


Pepsi)
History
Company Profile

Products

HISTORY OF COCA COLA


Dr. John Smith Pemberton, an Atlanta druggist, invented "CocaCola" syrup on May 8, 1886. Pemberton's bookkeeper, Frank M.
Robinson suggested the name "Coca-Cola" to Pemberton.
Robinson suggested this name because both the words Coca and

Cola named 2 of the ingredients. Also the 2 "C's" would look


good in advertising.
During the summer of 1886, a man complaining about a
headache. He asked the "soda jerk" to mix up a bottle of "CocaCola" syrup. The lazy clerk asked if soda water would do
instead of the usual tap water at the other end of the counter. The
man remarked it tasted very good. And "Coca-Cola" the most
popular carbonated beverage was born.
"Coca-Cola" was first marketed as a "brain and nerve tonic in
drugstores. Average sales were 9 drinks a day. But today sales
average 800,000,000 sales per day, around the world. The first
year's gross sales were $50 which was not enough to cover the
$73.96 advertising costs.
In 1888 The Coca-Cola Company was sold to Asa Briggs
Candler. Also later that year Dr. Pemberton died. The name
"Coca-Cola" first became a registered trademark in 1893 .The
first person to bottle "Coca-Cola" was, the owner of the
Beidharn Candy Company,Joseph A. Biedenharn in 1894.
In 1913, the use of cocaine in "Coca-Cola" became
controversial and Coca-Cola put "spent coca leaves" in instead
of cocaine.
By 1914 Asa Briggs Chandler made $50 million from The
Coca-Cola Company. In 1929, Asa Griggs Chandler died and his
famlily sold "The Coca Cola Company" to a group of
businessmen for $25 million.
.
Originally "Coke" the slang name for "Coca-Cola" was
discouraged in early adverising, but "Coke" became a registered
trademark in 1945.
During World WarII General Eisenhower requested 10 "CocaCola" bottling plants for the oversea troops.

"Coca-Cola" Now:

"The Coca-Cola Company"is now the largest soft drink


company in the world. Every year 800,000,000 servings of just
"Coca-Cola" are sold in the U.S alone.

"The Coca-Cola Company" takes pride in being a worldwide


business that is always local. Bottling plants with some
exceptions, are locally owned and operated by independent
business people who are native to the nations in which they are
located.

The company supplies the concentrates and beverage bases


used to make the products and it provides management
assistance to help it's bottler's ensure the profitable growth of
their business.

Present worth of Coca-Cola is around $58 billion.

COKE IN INDIA
INTRODUCTION

Brings Back The Fizz To India:


Coca-Cola, the corporate nourishing the global community with
the worlds largest selling soft drink concentrates since 1886,
returned to India in 1993 after a gap of 16 years giving a new
thumbs up to the Indian Soft Drink Market. In the same year, the
Company took over ownership of the nation's top soft-drink
brands and bottling network. No wonder, its brands have
assumed an iconic status in the minds of the consumers.

A Healthy Growth To Indian Economy:


Ever Since, Coca-Cola India has made significant investments to
build and continually consolidate its business in the country,
including new production facilities, waste water treatment
plants, distribution systems and marketing channels.

Coca-Cola India is among the countrys top international


investors, having invested more than US$ 1 billion in India
within a decade of its presence and further pledged another US$
100 million in 2003 for its operations.
A Pure Commitment to The Indian Economy
The Company has not only shaked up the Indian carbonated
drinks market, and given consumers the pleasure of world-class
drinks to fill up their hydration, refreshment & nutrition needs
but has also been instrumental in giving an exponential growth
to job opportunities.

Creating Enormous Job Opportunities:


With virtually all the goods and services required to produce and
market Coca-Cola being made in India, the business system of
the Company directly employs approximately 6,000 people, and
indirectly creates employment for more than 125,000 people in
related industries through our vast procurement, supply and
distribution system.

DISTRIBUTION NETWORK:
The vast Indian operations comprises 25 wholly-ownedcompany-owned bottling operations and another 24 franchiseeowned bottling operations. That apart, a network of 21 contractpackers also manufactures a range of products for the Company.
On the distribution front, 10-tonne trucks, open-bay threewheelers that can navigate the narrow alleyways of Indian cities
constantly keep our brands available in every nook and corner of
even the countrys remotest areas.

These are only some of the facts that speak about our
commitment to the growth of the Indian Economy.

PRODUCTS OF COCA-COLA
Coca-Cola serves in India some of the most recalled brands
across the world, which include names such as Coca-Cola, Diet
Coke, Sprite, Fanta, along with the Schweppes product range.
The acquisition of Thums Up brought some of the leading
national soft drinks like Thums Up, Limca, Maaza, Citra and
Gold Spot under its umbrella. To add to this, Kinley mineral
water was launched in the year 2000.
The Company ranking up "firsts" in the introduction ofCanned
and PET soft drinks, vending machines and backpack dispensers
for crowds of cricket supporters.

COCA COLA BEVERAGES

BRANDS:

Thums up
Maaza
Sprite
Fanta
Coca cola
Diet coke
Kinley
Sun fill
Georgia

THUMS-UP
Originally introduced in 1977, Thums Up was acquired by The
Coca-Cola Company in 1993.Thums Up is a leading carbonated
soft drink and most trusted brand in India. Thums Up is known
for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men

from the boys.

MAAZA

Maaza was launched in 1976. Here was a drink that offered the
same real taste of fruit juices and was available throughout the
year. In 1993, Maaza was acquired by Coca-Cola India. Maaza
currently dominates the fruit drink category. It is available in
SKUs of 200ml RGB, 250ml RGB, 125ml Tetrapak and 200ml
Tetrapak
SLOGAN: "Taaza Mango, Maaza Mango"
"Botal mein Aam, Maaza hain Naam".

SPRITE
In India, Sprite was launched in year 1999.Sprite is perceived as
a youth icon. With a strong appeal to the youth, Sprite has stood
for a straightforward and honest attitude. Its clear crisp
refreshing taste encourages the today's youth to trust their
instincts, influences them to be true to who they are and to obey
their thirst. Sprite is available around the country in 200ml,
300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and
330ml cans.
SLOGAN: "Sprite Bujhaye Only Pyaas, Baki All Bakwaas"

FANTA
Fanta- The 'orange' drink of The Coca-Cola Company
is seen as one of the favorite drinks since 1940's. Fanta entered
the Indian market in the year 1993. Perceived as a fun youth

brand, Fanta stands for its vibrant color, tempting taste and
tingling bubbles that not just uplifts feelings but also helps free
spirit thus encouraging one to indulge in the moment. This
positive imagery is associated with happy, cheerful and special
times with friends.

LIMCA
Born in 1971, Limca has been the original thirst choice, of
millions of consumers for over 3 decades. The brand has been
displaying healthy volume growths year on year and Limca
continues to be the leading flavour soft drink in the country. The
success formula The sharp fizz and lemoni bite combined with
the single-minded positioning of the brand as the ultimate
refresher has continuously strengthened the brand franchise.
Limca energizes, refreshes and transforms.

KINLEY
Water, a thirst quencher that refreshes, a life giving force that
washes all the toxins away. A ritual purifier that cleanses,
purifies, transforms. Water, the most basic need of life, the very
sustenance of life, a celebration of life itself. Kinley water
understands the importance and value of this life giving force.
Kinley water thus promises water that is as pure as it is meant to
be. Water you can trust to be truly safe and pure. Kinley water
comes with reverse-osmosis along with the latest technology to
ensure the purity.
Boond Boond Mein Vishvaas.

GEORGIA
Georgia, quality tea and coffee, served from state of the art
vending machines is positioned to tap into the nations biggest
beverage category. Georgia, which promises a great tasting,
consistent, hygienic and affordable cuppa is available in a range
of 7 sizzling flavors adrak, elaichi, masala and plain tea,
cappuccino, and mochaccino and regular coffee.

GEORGIA GOLD
Georgia Gold is the premium brand, which caters to the
connoisseur. Made from freshly roasted and ground coffee
beans, Georgia Gold is delicious tasting aroma with the
tantalizing aroma of fresh coffee.

History of Pepsi
INTRODUCTION:

Caleb Bradham of New Bern, North Carolina, had a soda


fountain in his drugstore, where he served his customers
refreshing drinks, that he created himself. His most popular
beverage was something he called "Brad's drink" made of
carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts.
Brads drink, created in the summer of 1893, was later renamed
Pepsi Cola in 1898 after the pepsin and cola nuts used in the
recipe.

EARLY GROWTH PHASE:


From the back room of his pharmacy, Caleb mixed and sold over
8,000 gallons of syrup his first year. Having an appreciation and
understanding of the value of advertising, he invested $1,900 of
his early profits in promotion of his new drink.
By 1903, Bradham had outgrown the back room of his drug
store, and moved his young company to temporary rented
quarters for almost a year before finally settling into its
permanent home, known as Bishops factory, in New Bern. At
that time, he also added bottling lines to his growing syrup
manufacturing business.
Caleb had established fifteen additional bottling plants by 1906
to attract the early Pepsi Generations.
By 1907, forty bottling plants were producing Pepsi-Cola, and
100,000 gallons of syrup were sold that year. In 1908, new
offices and plant facilities were added to the New Bern plant,
and the number of bottlers increased dramatically to ninetythree.

PEPSI BECAME INSOLVENT:


After seventeen years of success, Caleb Bradham lost Pepsi
Cola.
Caleb's major problems began shortly after the end of World
War I, when sugar prices began a series of wild fluctuations.
Sugar, a principal ingredient in the syrup base of Pepsi, rose
from five cents a pound to twenty-two cents a pound. Believing

it would rise even higher, Bradham bought large amounts as a


hedge against increased price levels. By 1920, sugar prices had
dropped to a low of three cents a pound, and the end of the first
chapter of Pepsi's history was just a matter of time.
By 1922, the Pepsi-Cola Company was insolvent. Finally, on
March 2, 1923, bankruptcy was declared, and Caleb Bradham
returned to his pharmacy ... and faded into obscurity. In 1931,
the Loft Candy Company Loft president, Charles G. Guth who
reformulated the popular soft drink, bought Pepsi Cola. Guth
struggled to make a success of Pepsi.
Disheartened by his lack of success in promoting Pepsi-Cola,
Guth approached his old enemy, the Coca-Cola Company of
Atlanta, with an offer to sell. Coca-Cola declined to even offer a
bid.

RISE OF PEPSI:
With no potential buyers, Guth went back to his customers with
the newly-created 12 ounce bottle, but only charged the standard
five cent price, and soda drinkers found the first good reason to
make a massive shift to Pepsi
In 1938, profits from the Pepsi-Cola Company had soared to an
astounding 4.2 million dollars
In 1941, the Pepsi-Cola Company went public, and for the first
time in its history, was listed on the New York Stock Exchange.
Another move was made by the company in 1948 to 3-West 57th
Street, New York City, New York.
A well-managed, profitable Pepsi-Cola was turned over in 1963
to Donald Kendall , who took over as president
In 1964, Diet Pepsi was introduced.

PEPSI IN INDIA
By most accounts, Pepsi gained entry to India in 1988 by
creating a joint venture with the Punjab government-owned
Punjab Agro Industrial Corporation (PAIC) and Voltas India

Limited. This joint venture marketed and sold Lehar Pepsi until
1991 when the use of foreign brands was allowed; Pepsi bought
out its partners and ended the joint venture in 1994. [120]
PepsiCo employed more than 4,000 people in India directly and
over 60,000 indirectly with its concept of contract farming in
India. It has relationships with over 2,000 farmers. The company
introduced farmers in India to six high-yield potato varieties and
helped development of new seeds which helped increase the
total annual production of tomatoes from 28,000 tonnes to over
250,000 tonnes in Punjab.
PepsiCo now is a world leader in beverages with revenues
of more than $32 billion and more than 157,000 employees.

PEPSI BEVERAGES

SECTION 3
Contents:-

Consumer Research Youngsters


and Housewives
Questionnaire
Findings and Analysis

A Consumer Research
About the sample
Sample size: 100
Restricted on: Youngsters 16-25 yrs (50)
Restricted on: Housewives 30-45 yrs (50)

Sample Areas:

Model Town
Ashok Vihar
Derawala
Tagore Park

QUESTIONNAIRE(Coca-Cola)

(Housewives & Youngsters)


1. Which Soft Drink do you mostly prefer?

Carbonated Soft drinks

Water

Juice

Others (Nimbu pani, Squashes etc)


2. What do you look for in a soft drink?

Taste

Brand

Availability

Refreshingness
3. How do you rank followings on your priority?

Taste

Sweetness

Refreshing

Brand name

Availability

Celebrities

Fizz
4. How often do you consume a soft drink?

Daily

Once in two day

Once in week

Once a fort night

5. How do you go for purchase?


Impulse buying
Pre-decided
6. How brand loyal you are?
Loyal to the brand
Willing to consider different options

7. Which is your favorite brand?

8. From where do you prefer to buy soft drink?


Grocery store
Departmental store
Restaurant
Others (canteen, etc)
9. What effect does promotional schemes have on your
purchase?
Very much
Somewhat
No effect
10. Which soft drink ad you like most & why?

11. What do you want to be changed or improved in the soft


drinks?

Sample Size 50
Restricted on - Youngsters (16
25 yrs)

Findings
Youngsters prefer CSDs more than
juices.
Their consumption is almost daily or
once in 2days.
The purchase is mostly impulse and
not pre-decided .
Youngsters are not much brand loyal.
34% are brand loyal as per the
findings.
Satisfying Factors
The research shows that most of the youngsters
i.e., 96%, rank the reasons behind their liking of
soft drink as:
1.Taste
2.Sweetness
3.Availability
4.Refreshness
5.Fizz
6.Celebrity
7.Brand Name

Preferred Soft Drink Among Youngsters

Coca-Cola is the most preffered soft drink


among youngsters(34%)
Pepsi comes 2nd in preference of
youngsters(20%)
Effect Of Promotional Schemes
People speak
Does not interest me.
I will not get a chance.

Its wastage of both time and money.


Its fake and nobody wins.
Findings

Youngsters merely remember the promotional


schemes.
The most remembered promotional scheme is
of Coca-Cola-27%.

The study shows that 74% of the youngsters


are not influenced by any of the promotional
schemes.
Expectations from the CSDs
People speak
What consumer believes today
I like the fizzy drinks but would like to try new
flavors which doesnt have adverse effect on my
body.
I will try the new drink with different taste and
natural supplements
Findings

56% of the youngsters dont want anything to


be changed in their brand.
12% of them want the price to be reduced.
24% of them want that soft drinks should have
more fizzes, less sweet and in different Colors.

Sample Size 50
Restricted on: Housewives
(30-45yrs)

Findings
Housewives prefer juices & lemonades more
than CSDs.
The consumption of CSDs in households is
once in a week (40%), once in two days (30%),
daily (30%).
The purchase is mainly pre-decided80%.
68% of the housewives are not brand loyal.
The reasons of consumption in households are:
For guests- 60%
Stock in summers- 40%

Promotional Schemes

Findings

78%of the housewives are not influenced by


any of the promotional scheme.
They are pestered by their kids if the schemes
are kids oriented.
The promotional schemes does not affect their
preference.
Reasons behind their likings according to the
ratings
1. Taste
2. Availability
3. Refreshing
4. Brand Name
5. Fizz
6. Celebrity
Expectations from the CSDs
Findings

58% of the housewives are satisfied with their


CSDs, reasons: Good Taste
Refreshing ness

Availability
Digestive ness
They dont want any change in their CSDs.
The rest 42% of the housewives want: Less sweet.
Price minimization.
No kids schemes.
More fizz (like the old coca cola).
More quantity in same price.

Preferred Place For Purchase

Grocery Stores are the most preferred place of


purchase for both housewifes and youngsters

FAVORITE BRAND AD

WHY

COCA COLA
Good
concept,
Different
languages,
Entertaining, Humorous.
Its very creatively done, campaign is focused.
Catchy, very lively.
PEPSI
Good jingle (Oye bubbly)
Chirpy, Exciting, celebrity (e.g. SRK)
THUMS - UP
Sticks to the message Youthfulness (Thumsup).
SPRITE
Tactful, Idea well executed.

SECTION 4
CONTENTS:-

Findings
Changing trends in soft drink industry
Changing trends in buying behavior

Recommendations for Coke

CHANGING TRENDS IN SOFT DRINK


INDUSTRY
The two cola giants are focusing on non CSD
business.
PepsiCo is experimenting with a host of new
flavours under the brand name Tropicana.
The pesticide controversy persisted hurting
sales for both cola giants.
Therefore some consumers started preferring
juices over CSDs.
On these lines manufacturers of CSDs are
deciding on a strategy shift to a complete
Beverage Company.
CHANGE IN THE BUYING PATTERN OF
INDIANS
Rapidly evolving work and lifestyle habits has
increased the consumption of product categories
like non-carbonated soft drinks.
Moreover purchasing power of consumers has
increased due to increase in their disposable
income.

As a result soft drinks, impulse foods register


high-double digit growth rate.
Further as health and convenience continue
to be key themes for consumers the world over.
In line with global trends, the need for
convenience and desire of healthier product
alternatives is also precipitating the growth of
non-carbonated soft drinks.
An increased preference for such product
alternatives like Fruit Juices appears to be
stemming up.
RECOMMENDATIONS FOR COCA-COLA
Communication:Need to communicate value-propositions
associated with Brand Loyalty. Consumers
should feel Pride in being associated with
Coca-Cola Brand.
Coke should design more attractive
promotional schemes to attract the attention of
consumers.
Needs to put more focus on the Fruit Juices
segment as it is a rapidly growing market.

Keep experimenting with Flavors and


Colors like Pepsi. Because consumers like
trying out new flavors and colors.
Devise appropriate strategies to Capture
Market Share in Bottled Water segment.
Need to clarify the differentiators between
CSDs, pure juices, & juice-based drinks.
Segmentation:Identify and focus on appropriate target
audiences.
Devise appropriate strategies for each segment
of consumers
Distribution:Stronger distribution network
Better retail relationship management

ANNEXURE

RESEARCH METHODOLOGY
Objective of the study: A comparative analysis of Beverage (soft drink) Industry with special reference to
Coca-Cola.

Scope of the study:

Overview and analysis of non alcoholic beverage industry.


Influencing factors and buying behavior of consumers.

Type of data:

Primary data: Interviews, Tele- discussions, Questionnaire.


Secondary data: Internet, Books, Newspapers & Magazines, and Journals.

Statistical tools used: Convenience Sampling


Sample size: - 100 no.

Housewives: - 50

Youngsters: - 50

Limitations of the study:

Difficult to take the right feedback from the consumers.


Lack of updated secondary data.

BIBLIOGRAPHY
BOOKS

MARKETING MANAGEMENT BY PHILIPS KOTLER.


ADVERTISEMENT AND SALES PROMOTION BY Dr.S.L. GUPTA AND V.V. RATNA.

REFERENCES

WEBSITES
www.cocacola.com
www.google.com
www.dinodia.com
www.yahoo.com

NEWSPAPERS AND MAGZINES

THE ECONOMIC TIMES


THE TIMES OF INDIA
THE HINDUSTAN TIMES
BUSINESS WORLD

BUSINESS INDIA
BRAND REPORTER

Thank You!

Please enjoy a delicious and refreshing CocaCola!