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A MINOR PROJECT REPORT

ON
MARKETING STRATEGIES OF COCA COLA

Submitted in the partial fulfilment of degree of


Bachelor of Business Administration (General)
(2012-2015)

Under the Guidance of:


Ms. HIMANI
Asst. Professor, FIMT
Submitted By:
VINOD SEHRAWAT
Enrollment No. 01890101712
BBA (GENERAL) 3rd Semester

FAIRFIELD INSTITUTE OF MANAGEMENT AND


TECHNOLOGY
Affiliated to Guru Gobind Singh Indraprastha
University,

Kapashera, New Delhi-110037

Student Declaration

I hereby declare that the project entitled Marketing Strategies of Coca Cola under the
Guidance of Ms. Himani submitted in the partial fulfilment of the degree of Bachelor of
Business

Administration

BBA (GENERAL)

FROM

Fairfield

Institute

of

Management and Technology, affiliated from GGSIPU New Delhi. This is my original
work and this project work has not formed the basis for the award of any Degree to the
best of my knowledge.

Name: Vinod Sehrawat


Enrolment No.: 01890101712
Place: New Delhi
Date:

Certificate by the Guide

This is to certify that project title Marketing Strategies of Coca Cola is original work
of Mr. Vinod Sehrawat student of BBA (GEN) 3rd Semester and has been duly
completed his project under my guidance and supervision up to my satisfactory level.
This work has been done in partial fulfilment of the requirement for the award of the
degree of Bachelor of Business Administration from Fairfield Institute of
Management and Technology, GGSIPU and has not been submitted anywhere in any
other university for the award of any degree.

Ms. Himani
Asst. Professor, FIMT

ACKNOWLEDGMENT
It is pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project. First of all let me praise god for all the blessings, which carried me
through all those years.
I am particularly indebted to the Director Dr. R.K. Garg, Director (Admn.) Dr. Manju
Singh and HOD, Management Dr. S.P. Singh of the Fairfield Institute of Management
and Technology which inculcated in me utmost respect for human values and groomed
me up in the field of software technology take on the challenges of the competitive world.
I pay my sincere and heartiest gratitude to my faculty guide Ms. Himani for her
continuous motivation and support she gave to me, during the period of project.
My Special thanks to all those Respondents, whom I have interviewed for the purpose of
my Primary Data Collection.

VINOD SEHRAWAT

INDEX

1.

EXECUTIVE SUMMARY

2.

INTRODUCTION

3.

OBJECTIVE AND SCOPE OF THE STUDY

4.

RESEARCH METHODOLOGY

5.

LITERATURE REVIEW

6.

DATA ANLYSIS

7.

FINDINGS

8.

RECOMMENDATION

9.

CONCLUSION

10.

ANNEXURE-QUESTIONNAIRE

11.

BIBLIOGRAPHY

EXECUTIVE SUMMARY
Corporate social responsibility the term refers to the conscientiousness towards the
customers, employees and the society. It gives the ethical perspective of doing business in
the social environment for the companies. In order to social and economic development
of the country the corporate social responsibility strengthens the companies belief
towards the sole responsibility of conducting the business operations. Business ethics
provides the clear vision to the companies for doing their business in the legal manner
and perform their responsibilities towards the society.
However some companies do not have the attention towards the benefit of the consumers
and just perform their operations for sake of profit and revenue generation. Whenever the
consumers or the society affected from any loss then the companies realize that what are
the unethical in their business. Apart from the product and services offered to the
consumers the companies must focus towards their CSR initiatives which will help the
up-liftment of the society and eventually the growth of the country. Coca Cola, one of
the largest beverage and packaged food company has been encountered for doing the
business unethically. The issues are not only raised in the one country but also across the
geographies and locations where the company has its business operations.
The countries where the company has faced major issues are India, Colombia, Guatemala
and Philippines. The products of the company have been criticized in these countries by
many sources for negative health impact, exploitation of labor, high level of pesticides
usage in the beverage products, slave labor employment and environmental issues. In
Colombia, the products of Coca Cola has been given up by the consumers due to the
serious killing of labor in the bottling plant, kidnapping of trade union leaders and
unethical practices with the employees.
In India, the company has been wind up its business operations in the year 1973 due to
the unethical business practices, though the company returned back in the year 1996 with
enhanced quality and legal corporate governance framework to perform the business in
ethical way. For a long time the company did not perform its corporate social
responsibility though after that once the company realize the negative impact on its
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business profitability and hence undertake several CSR initiatives. In the line of this
discussion this research study is focusing towards the growing criticism against Coca
Cola and the assessment of CSR initiative of Coca Cola.

INTRODUCTION
Company Overview:
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
internationally. The Coca-Cola Company claims that
the beverage is sold in more than 200 countries. It is
produced by The Coca-Cola Company in Atlanta,
Georgia, and is often referred to simply as Coke (a
registered trademark of The Coca-Cola Company in
the United States since March 27, 1944). Originally
intended as a patent medicine when it was invented
in the late 19th century by John Pemberton, CocaCola was bought out by businessman Asa Griggs
Candler, whose marketing tactics led Coke to its
dominance

of

the

world

soft-drink

market

throughout the 20th century.


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.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, with others including CaffeineFree Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, CocaCola Vanilla, and special editions with lemon, lime or coffee.

In response to consumer insistence on a more natural product, the company is in the


process of phasing out E211, or sodium benzoate, the controversial additive used in Diet
Coke and linked to DNA damage in yeast cells and hyperactivity in children. The
company has stated that it plans to remove E211 from its other products, including Sprite
and Oasis, as soon as a satisfactory alternative is found.
Coca Cola: Company Background
It was in 1886 John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity.
One afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he
carried it a few doors down to Jacobs' Pharmacy. Here, the mixture was combined with
carbonated water and sampled by customers who all agreed -- this new drink was
something special.
The Coca-Cola drink, popularly known as 'Coke', is a kind of cola, a sweet carbonated
drink containing caramel and other flavouring agents. The beverage was named CocaCola because of its ingredients, which includes Coca leaves and Kola nuts. Pemberton
later sold the business to a group of businessmen, one of whom was Griggs Candler
(Candler). By 1888, several cola brands were in the market competing against each other.
Candler acquired these businesses from the other businessmen and established Coca-Cola
in 1892 and is going smooth till now. Coca-Cola India was established as the Indian
subsidiary of the US-based Coca-Cola Company (Coca-Cola) in 1993.
21st Century:
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of
2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener
sucralose, the same sweetener currently used in Pepsi One. On March 21, 2005, it
announced another diet product, Coca-Cola Zero, sweetened partly with a blend of
aspartame and acesulfame potassium. In 2007, Coca-Cola began to sell a new "healthy
soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed as "Diet
Coke Plus."

10

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 April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "CocaCola." The word "Classic" was truncated because "New Coke" was no longer in
production, eliminating the need to differentiate between the two. The formula remained
unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16ounce bottles sold in parts of the southeastern United States. The change is part of a
larger strategy to rejuvenate the product's image.
In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco
stopped restocking its shelves with Coke and Diet Coke.
Logo Design:
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason
Robinson, in 188 5. Robinson came up with the
name and chose the logo's distinctive cursive script.
The typeface used, known as Spencerian script,
was developed in the mid 19th century and was the
dominant form of formal handwriting in the United
States during that period. Robinson also played a
significant role in early Coca-Cola advertising. His promotional suggestions to
Pemberton included giving away thousands of free drink coupons and plastering the city
of Atlanta with publicity banners and streetcar signs.
Local Competitors:
Pepsi is usually second to Coke in sales, but outsells Coca-Cola in some markets. Around
the world, some local brands compete with Coke. In South and Central America Kola
Real, known as Big Cola in Mexico, is a fast-growing competitor to Coca-Cola. On the
French island of Corsica, Corsica Cola, made by brewers of the local Pietra beer, is a

11

growing competitor to Coca-Cola. In the French region of Brittany, Breizh Cola is


available. In Peru, Inca Kola outsells Coca-Cola, which led The Coca-Cola Company to
purchase the brand in 1999. In Sweden, Julmust outsells Coca-Cola during the Christmas
season. In Scotland, the locally produced Irn-Bru was more popular than Coca-Cola until
2005, when Coca-Cola and Diet Coke began to outpace its sales. 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% marketshare in India. Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, due
to a United States embargo. French brand Mecca Cola and British brand Qibla Cola,
popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a
major competitor to Coca-Cola. In Iran and many countries of Middle East, Zam Zam
Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China Future
cola is a competitor. In Slovenia, the locally produced Cockta is a major competitor to
Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in the country's
biggest supermarket chain, Mercator. In Israel, RC Cola is an inexpensive competitor.
Classiko Cola, made by Tiko Group, the largest manufacturing company in Madagascar,
is a serious competitor to Coca-Cola in many regions. Laranjada is the top-selling soft
drink on the Portuguese island of Madeira. Coca-Cola has stated that Pepsi was not its
main rival in the UK, but rather Robinsons drinks.
Advertising:
Coca-Cola's advertising has significantly affected American culture, and it is frequently
credited with inventing the modern image of
Santa Claus as an old man in a red-and-white
suit. Although the company did start using the
red-and-white Santa image in the 1930s, with its
winter advertising campaigns illustrated by
Haddon Sundblom, the motif was already
common. Coca-Cola was not even the first soft drink company to use the modern image
of Santa Claus in its advertising: White Rock Beverages used Santa in advertisements for
its ginger ale in 1923, after first using him to sell mineral water in 1915. Before Santa

12

Claus, Coca-Cola relied on images of smartly dressed young women to sell its beverages.
Coca-Cola's first such advertisement appeared in 1895, featuring the young Bostonian
actress Hilda Clark as its spokeswoman. 1941 saw the first use of the nickname "Coke"
as an official trademark for the product, with a series of advertisements informing
consumers that "Coke means Coca-Cola".
In 1971, a song from a Coca-Cola commercial called "I'd Like to Teach the World to
Sing", produced by Billy Davis, became a hit single. Coke's advertising is pervasive, as
one of Woodruff's stated goals was to ensure that everyone on Earth drank Coca-Cola as
their preferred beverage. This is especially true in southern areas of the United States,
such as Atlanta, where Coke was born. Coca-Cola sales booth on the Cape Verde island
of Fogo in 2004. Some of the memorable Coca-Cola television commercials between
1960 through 1986 were written and produced by former Atlanta radio veteran Don
Naylor (WGST 19361950, WAGA 19511959) during his career as a producer for the
McCann Erickson advertising agency. Many of these early television commercials for
Coca-Cola featured movie stars, sports heroes and popular singers. During the 1980s,
Pepsi-Cola ran a series of television advertisements showing people participating in taste
tests demonstrating that, according to the commercials, "fifty percent of the participants
who said they preferred Coke actually chose the Pepsi." Statisticians were quick to point
out the problematic nature of a 50/50 result: most likely, all the taste tests really showed
was that in blind tests, most people simply cannot tell the difference between Pepsi and
Coke. Coca-Cola ran ads to combat Pepsi's ads in an incident sometimes referred to as
the cola wars; one of Coke's ads compared the so-called Pepsi challenge to two
chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-Cola regained its
leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her death. She filmed
three commercials for the company. In 1994, to commemorate her five years with the
company, Coca-Cola issued special Selena coke bottles. The Coca-Cola Company
purchased Columbia Pictures in 1982, and began inserting Coke-product images in many
of its films. After a few early successes during Coca-Cola's ownership, Columbia began
to under-perform, and the studio was sold to Sony in 1989. Coca-Cola has gone through a

13

number of different advertising slogans in its long history, including "The pause that
refreshes," "I'd like to buy the world a Coke," and "Coke is it".
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty campaign where
consumers earn points by entering codes from specially marked packages of Coca-Cola
products into a website. These points can be redeemed for various prizes or sweepstakes
entries
Holiday campaigns:
The "Holidays are coming!" advertisement features a train of red delivery trucks,
emblazoned with the Coca-Cola name and decorated with electric lights, driving through
a snowy landscape and causing everything that they pass to
light up and people to watch as they pass through. The
advertisement fell into disuse in 2001, as the Coca-Cola
company restructured its advertising campaigns so that
advertising around the world was produced locally in each
country, rather than centrally in the company's headquarters
in Atlanta, Georgia. However, in 2007, the company brought
back the campaign after, according to the company; many
consumers telephoned its information center saying that they
considered it to mark the beginning of Christmas. The advertisement was created by U.S.
advertising agency Doner, and has been part of the company's global advertising
campaign for many years. Keith Law, a producer and writer of commercials for Belfast
CityBeat, was not convinced by Coca-Cola's reintroduction of the advertisement in 2007,
saying that "I don't think there's anything Christmassy about HGVs and the commercial is
too generic." In 2001, singer Melanie Thornton recorded the campaign's advertising jingle
as a single, Wonderful Dream (Holidays are Coming), which entered the pop-music charts
in Germany at no. 9. In 2005, Coca-Cola expanded the advertising campaign to radio,
employing several variations of the jingle.

14

Sports Sponsorship:
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. This corporate sponsorship
included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to
spotlight its hometown. Most recently, Coca-Cola has released localized commercials for
the 2010 Olympics in Vancouver; one Canadian commercial referred to Canada's hockey
heritage and was modified after Canada won the gold medal game on February 28, 2010
by changing the ending line of the commercial to say "Now they know whose game
they're playing". Since 1978, Coca-Cola has sponsored each FIFA World Cup, and other
competitions organised 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 addition, Coca-Cola sponsors the annual Coca-Cola 600 and Coke
Zero 400 for the NASCAR Sprint Cup Series at Charlotte Motor Speedway in Concord,
North Carolina and Daytona International Speedway in Daytona, Florida. Coca-Cola has
a long history of sports marketing relationships, which over the years have included
Major League Baseball, the National Football League, National Basketball Association
and the National Hockey League, as well as with many teams within those leagues. CocaCola is the official soft drink of many collegiate football teams throughout the nation.
Coca-Cola was one of the official sponsors of the 1996 Cricket World Cup held on the
Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi Daredevils
in Indian Premier League. In England, Coca-Cola is the main sponsor of The Football
League, a name given to the three professional divisions below the Premier League in
football (soccer). It is also responsible for the renaming of these divisions until the
advent of Coca-Cola sponsorship, they were referred to as Divisions One, Two and Three.
Since 2004, the divisions have been known as The Championship (equiv. of Division 1),
League One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This renaming has
caused unrest amongst some fans, which see it as farcical that the third tier of English
Football is now called "League One." In 2005, Coca-Cola launched a competition for the
72 clubs of the football league it was called "Win a Player". This allowed fans to place
1 vote per day for their beloved club, with 1 entry being chosen at random earning
250,000 for the club; this was repeated in 2006. The "Win A Player" competition was
15

very controversial, as at the end of the 2 competitions, Leeds United AFC had the most
votes by more than double, yet they did not win any money to spend on a new player for
the club. In 2007, the competition changed to "Buy a Player". This competition allowed
fans to buy a bottle of Coca-Cola Zero or Coca-Cola and submit the code on the wrapper
on the Coca-Cola website {www.coca-colafootball.co.uk}. This code could then earn
anything from 50p to 100,000 for a club of their choice. This competition was favored
over the old "Win A Player" competition, as it allowed all clubs to win some money.
Introduced March 1, 2010, in Canada, to celebrate the 2010 Olympics, Coca Cola will
sell gold coloured cans in packs of 12 355 mL each, in select stores
Health Effects:
Since studies indicate "soda and sweetened drinks are the main source of calories in [the]
American diet", most nutritionists advise that Coca-Cola and other soft drinks can be
harmful if consumed excessively, particularly to young children whose soft drink
consumption competes with, rather than complements, a balanced diet. Studies have
shown that regular soft drink users have a lower intake of calcium, magnesium, ascorbic
acid, riboflavin, and vitamin A. The drink has also aroused criticism for its use of
caffeine, which can cause physical dependence. A link has been shown between longterm regular cola intake and osteoporosis in older women (but not men). This was
thought to be due to the presence of phosphoric acid, and the risk was found to be same
for caffeinated and noncaffeinated colas, as well as the same for diet and sugared colas.
The use of Coca-Cola has also been associated with an increase of tumors in laboratory
rats, based on research by the Ramazzini Foundation in 2006.
A common criticism of Coke based on its allegedly toxic acidity levels has been found to
be baseless by researchers; lawsuits based on these notions have been dismissed by
several American courts for this reason. Although numerous court cases have been filed
against The Coca-Cola Company since the 1920s, alleging that the acidity of the drink is
dangerous, no evidence corroborating this claim has been found. Under normal
conditions, scientific evidence indicates Coca-Cola's acidity causes no immediate harm.
Since 1980 in the U.S., Coke has been made with high-fructose corn syrup (HFCS) as an
16

ingredient. Originally it was used in combination with more expensive cane-sugar, but by
late 1984 the formulation was sweetened entirely with HFCS. Some nutritionists caution
against consumption of HFCS because it may aggravate obesity and type-2 diabetes more
than cane sugar. Also, a 2009 study found that almost half of tested samples of
commercial HFCS contained mercury, a toxic substance. In India, there is a major
controversy whether there are pesticides and other harmful chemicals in bottled products,
including Coca-Cola. In 2003 the Centre for Science and Environment (CSE), a nongovernmental organization in New Delhi, said aerated waters produced by soft drinks
manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained
toxins including lindane, DDT, malathion and chlorpyrifos pesticides that can
contribute to cancer and a breakdown of the immune system. CSE found that the Indian
produced Pepsi's soft drink products had 36 times the level of pesticide residues
permitted under European Union regulations; Coca-Cola's soft drink was found to have
30 times the permitted amount. CSE said it had tested the same products sold in the U.S.
and found no such residues. After the pesticide allegations were made in 2003, Coca-Cola
sales in India declined by 15 percent. In 2004 an Indian parliamentary committee backed
up CSE's findings and a government-appointed committee was tasked with developing
the world's first pesticide standards for soft drinks. The Coca-Cola Company has
responded that its plants filter water to remove potential contaminants and that its
products are tested for pesticides and must meet minimum health standards before they
are distributed. In the Indian state of Kerala sale and production of Coca-Cola, along with
other soft drinks, was initially banned after the allegations, until the High Court in Kerala
overturned ruled that only the federal government can ban food products. Coca-Cola has
also been accused of excessive water usage in India. The 2008 Ig Nobel Prize (a parody
of the Nobel Prizes) in Chemistry was awarded to Sheree Umpierre, Joseph Hill, and
Deborah Anderson, for discovering that Coca-Cola is an effective spermicide, and to C.Y.
Hong, C.C. Shieh, P. Wu, and B.N. Chiang for proving it is not.

17

OBJECTIVES AND SCOPE

OBJECTIVES OF THE STUDY:


The term corporate social responsibility is itself defined by the three words involved in it
as the corporate, social and responsibility. Moreover the meaning of corporate social
responsibility is to cover up the responsibilities which the corporation have and perform
it towards the benefit of the society in which the corporation is operating its business.
Also the CSR is process of identifying the group of stakeholders and integrating their
needs, values and expectations with the day to day strategic and decision making process.
In its early business operations in India, the Coca Cola Company was lacking in such area
and performing its business operations in unethical way due to which the company has to
quit from the country. Apart from India, the company has to face the same issue in other
operating countries also which has not only impacted the business profitability but also
the company reputation among the consumers. The products and the manufacturing
operations were not only harming the society but also the economy and environment as
well. Later in early 90s the company has realized its corporate responsibilities towards
the economy, society and environment. Accordingly the company has undertaken several
CSR in initiative for the benefiting the country and society. Along with this discussion
this research study will help the researcher and the reader to understand the importance of
corporate social responsibility for the companies and how the companies are performing
their CSR initiative with the special reference of Coca Cola India. Further the research
study will contribute in the business ethics studies by providing the suggestion in the
successful implementation of Corporate Social Responsibilities undertaken by the
companies.

To analyze the marketing strategies deployed by Coca-Cola in India to boost the


market share.

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Under standing the issue and challenges faced by Coca-cola with regard to its
marketing initiatives in India.

To examine the rationale behind Coke's Corporate social measures in India as a


part of its marketing strategy.

To bring out a business model that integrates CSR initiatives in the strategic
marketing of a company

SCOPE OF THE STUDY:


The scope of this study is to better understand the criticality and importance of marketing
for any firm. Further in contrast to Coca-Cola India we would understand the integration
of CSR and marketing strategies adopted by the company from time to time, to overcome
the pressure of being unsafe and unethical for society. By this study we would identify
activities taken up by Coca-Cola India's management and employees to contribute to the
society and community in which the company operates through its marketing efforts.

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RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the


investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and the universe. Research
can use the scientific method, but need not do so. Scientific research relies on the
application of the scientific method, a harnessing of curiosity. This research provides
scientific information and theories for the explanation of the nature and the properties of
the world around us. It makes practical applications possible. Scientific research is
funded by public authorities, by charitable organizations and by private groups, including
many companies. Scientific research can be subdivided into different classifications
according to their academic and application disciplines. Historical research is embodied
in the historical method. The term research is also used to describe an entire collection of
information about a particular subject.
The selection of the particular research approach depends on the kind of information
required. Qualitative research collects, analyzes, and interprets data that cannot be
meaningfully quantified, that is, summarized in the form of numbers. For this reason,
qualitative research is sometimes referred to as soft research. Quantitative Research
calls for very specific data, capable of suggesting a final course of action. A primary role
of quantitative research is to test hunches or hypotheses. These suggest that qualitative
approach is a soft research approach in which collected data cannot be meaningfully
quantified and more importantly in this approach non-structured research is conducted.
But so far as quantitative research approach is concerned, through this approach
structured research is conducted with approaching larger respondents and the collected
data can be meaningfully quantified. Research data can be collected either in the form of
secondary or primary or both. Secondary Data usually factual information can be
obtained through secondary data that has already been collected from other sources and is
readily available from those sources. The definition and characteristics of secondary data
20

presented above suggest us that secondary data are data that have already been collected
for purpose other than the problem in hand. Before detailing as how and what secondary
data were collected in this research, in would be worth to examine the advantages and
disadvantages of such data.
Secondary data are easily accessible, relatively inexpensive, and quickly obtained. Some
secondary data are available on topics where it would not be feasible for a firm to collect
primary data. Although it is rare for secondary data to provide all the answers to a nonroutine research problem, such data can be useful in a variety of ways. Primary data is
collected for the specific purpose of addressing the problem at hand. The collection of
primary data involves various steps. Thus obtaining primary data can be expensive and
time consuming. These suggest that primary data are those data that are collected for the
particular purpose of research in hand. The disadvantage of collecting primary data is that
it is lengthy and resource and time consuming process, but the advantage of primary data
is that they are first hand information and comparatively more reliable. A researcher
originates primary data for the specific purpose of addressing the problem at hand. The
collection of primary data involves all six steps of the marketing research process.
Obtaining primary data can be expensive and time consuming.
Primary Data:
For obtaining the Primary data for my project, I propose to use two research instruments
i.e., Questionnaire and Structured Interviews:
a. Questionnaire
i. Sample Size

: 100

ii. Sample composition


b. Structured Interviews
i. Sample Size

: 50

21

Secondary Data:
I propose to get the secondary data from:
a. Previous in house studies done in the COCA COLA INDIA LTD.
b. company websites, journals and web articles
Research Funding:
Most funding for scientific research comes from two major sources, corporations
(through research and development departments) and government (primarily through
universities and in some cases through military contractors). Many senior researchers
(such as group leaders) spend more than a trivial amount of their time applying for grants
for research funds. These grants are necessary not only for researchers to carry out their
research, but also as a source of merit.
Some faculty positions require that the holder has received grants from certain
institutions, such as the US National Institutes of Health (NIH). Government-sponsored
grants (e.g. from the NIH, the National Health Service in Britain or any of the European
research councils) generally have a high status.
The goal of the research process is to produce new knowledge, which takes three main
forms (although, as previously discussed, the boundaries between them may be fuzzy):

Exploratory research, which structures and identifies new problems

Constructive research, which develops solutions to a problem

Empirical research, which tests the feasibility of a solution using empirical


evidence

Research can also fall into two distinct types:

Primary research

22

Secondary research

Research is often conducted using the hourglass model Structure of Research. The
hourglass model starts with a broad spectrum for research, focusing in on the required
information through the methodology of the project (like the neck of the hourglass), then
expands the research in the form of discussion and results.
Research in common parlance refers to a search for knowledge. Once can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact research is an art of scientific investigation. The Advanced Learners Dictionary of
Current English lays down the meaning of research as a careful investigation or inquiry
especially through search for new facts in any branch of knowledge, Rcdman and Mory
define research as a systematized effort to gain new knowledge.2 Some people consider
research as a movement, a movement from the known to the unknown; It is actually a
voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the
unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full
and fuller understanding of the inquisitiveness is the mother of aN knowledge and the
method, which man employs for obtaining the knowledge of whatever the unknown, can
be termed as research.
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organising and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions
to determine whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson
in the Encyclopedia of Social Sciences define research as he manipulation of things,
concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of an
art.3 Research is, thus, an original contribution to the existing stock of knowledge
making for its advancement. It is the pursuit of truth with the help of study, observation,
comparison and experiment. In short, the search for knowledge through objective and
systematic method of finding solution to a problem is research. The systematic approach

23

concerning generalization and the formulation of a theory is also research. As such the
term research refers to the systematic method consisting of enunciating the problem,
formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching
certain conclusions either in the form of solutions(s) towards the concerned problem or in
certain generalizations for some theoretical formulation.
Research Approach:
The above description of the types of research brings o Light the fact that there arc two
basic approaches to research, viz,, quantitative approach and the qualitative approach.
The former involves the generation of data in quantitative form which can be subjected to
rigorous quantitative analysis in a formal and rigid fashion, This approach can be further
sub classified into inferential, experimental and simulation approaches to research. The
purpose of inferential approach to research is to form a data base from which to infer
characteristics or relationships of population. This usually means survey research where a
sample of population is studied (questioned or observed) to determine its characteristics,
and ii is then inferred that the population has the same characteristics. Experimental
approach is characterized by much greater control over the research environment and in
this case some are manipulated to observe their effect on other variables. Simulation
approach involves the construction of an artificial environment within which relevant
information and data can be generated. This permits an observation of the dynamic
behaviour of a system under controlled conditions, The term simulation in the context
of business and social sciences applications refers to operation of a numerical model that
represents the structure of a dynamic process. Given the values of initial conditions,
parameters and exogenous variables, a simulation is run to represent the behaviour of the
process over simulation approach can also be useful in building models for understanding
future conditions.
Qualitative approach to research is concerned with subjective assessment of attitudes,
opinions and behaviour, Research n such a situation is a function of researchers insights
and impressions. Such an approach to research generates results either in non quantitative
form or in the form which are not subjected to rigorous quantitative analysis. Generally,

24

the techniques of focus group interviews, projective techniques and depth interviews are
used. This entire arc explained at length in chapters that follow.

LITERATURE REVIEW
Marketing strategy of coca cola:
Target Market:
Cokes commercials basically based on young generations, so, the young generation is
the target market of Coke because they want to represent Coke with the youth and energy
but they also consider about the old people they take then as a co-target market.
Major Segments:
Major segments are basically those people who take this drink daily and those areas
where the demands are higher then the other areas. There are so many people who take
this drink daily and those people who take weekly and those who take less often are
always there as well. So, their basic segments are those people who take this drink
regularly.
Factors Effecting Sales:
There are so many factors, which affects the sale of coke. Here we are discussing three
major factors which effects coke.
Per capita income
Competitors
Weather
Per Capita Income:
First we will discuss about Per capita income. This is major factor that affects the sale
of this soft drink. Because which every passing year budgets are becoming very strict and

25

tight in order to purchase things. So the disposable incomes of the people are coming
down. They spend heavily on rents, utilities, and education and basic necessities and after
that when they get extra money they think about this soft drink .So the decreasing per
capita income effects badly in selling and production of this soft drink And to get through
with this difficulty there is need to increase the level of per capita income of India
because it is much lesser than the rest of the countries
Competitors:
Cokes major competitor is PEPSI and there is no hesitation to say this because every
one knows that and all the other cold drinks and water, coffee, tea is the competitors.
Weather:
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped
market so the cokes consumption in summers is 60% and in winters is 40%.
Major customers need:
First of all the majority dont care that what they are going to have. In other words, they
dont care before drinking that whether it is Pepsi or coke. They dont actually
differentiate between these two brands in order to their tastes. Consumers basically drink
what they get.
They believe on WHAT COLD THEY SOLD
Consumers availability in brands is basically works like:
Push availability
Pull consumers demand.
They have maximum number of coolers and freezers in the market. They provide this
infrastructure free of cost just to provide child coke to their customer, which they want to
be purchase. Their salesman and mechanics regularly visit all the shops where coke has

26

its infrastructure to check that either it is in proper condition or not, if not then they
immediately change or repair it.

Major Competitors:
Consumers firstly decide that they are going to have a soft drink. Then they compete
brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team
.So the major competitor of Coke is Pepsi. When they motivate to any other brand or on
Coke its in instinct basically that based on messages derive certain feelings. But Coca
Cola thinks in a different way, they believe that RC Cola, new coming AMRAT Cola, and
all juices, even they take water and tea as their competitors.
Strategies of quality:
After Micro and macro analysis Brand coke is primarily role
1. Enhance competition moments
2. When people watch cricket
3. Through commercialization
4. Fun time
Though these strategies there could be better understanding and better connection
with the public. These are the key consumption.
Threat from competitors:
Threats are well planned. Price is the major threat. When price goes certain beyond the
exact price whether come down or go higher its effects the consumption of soft drink.
Because when the price goes higher people go for the substitute of coke i.e. Pepsi. And
when price goes down they think that there is must be some thing wrong in it. In short it
all depends on customers perception.

27

Targets that would like to attain:


Every organization runs on the bases of profit maximization so Coke is also looking for a
high profit margin. There are three major ways of making money
Over night profit
Windfall profit
Ethical and un-ethical ways
Over Night Profits:
They could be over night profit that is for the number 1 brand for the year. This
could be got my increasing sales volume
Windfall Profit:
Can be windfall profit. They are the extras profit. When the consumption the
consumption is on boom. So, there is different kind of profits.
Ethical and Unethical Ways:
Profit can also get through ethical and unethical ways. They believe on this quote
Every thing is fare in love and war. Some profits stays for some time like over
night profits and some just come and go like wind fall profits. And they can
also get profit through different approaches.
Expanding Target Market:
In last 2 years Coke has come back in aggressive manner.
Consumer has choice
Attractive brand name
Brand differentiating

28

Consumer Has Got Choice: Now the consumer has got choice. Because now
they know the name of another big brand, though coke is the 2nd best name but it
can get a better position after some time
Attractive Brand Name: Now the consumers know the Name of Coke, because
Coke is the name, which is the most popular after the word ok. So people can
better differentiate brands with each other.
Brand Differentiation: Now different companies have got different brand names.
So, people can distinguish between brands. Two major brands coke and Pepsi
also have brand names
Coca Colas Brand:
Coca cola is US brand. Because they believe in the togetherness, being people together
and friends are being together. Coca Cola strongly believes that Indian temperament is
US not ME
Pepsis Brand:
Pepsis brand is basically is basically ME branded. They use the temperament of ME.
In contrast to Coke they believe on individual struggle.
Threats and opportunities for price:
Opportunities:
If Coke is considered a luxury product. Then there is the tax rate system
15% - sales tax
20% - excise duty
27% - goes to government
03% - In making Budget

29

After paying all these taxes coke has to pay electricity charges. We have to spend on
distributions. After paying all these expenses Cokes margin squeezed and consumers
have to pay for increasing tariffs. These are the opportunities through which we can
increase the price and can get profits.
Threats:
There are much more threats in increasing prices. Because same problem of substitute. If
Coke increases the price lets say 1 rupee. Then people definitely wont go for coke. They
have the best substitute of Coke that is Pepsi. So these are the threats in increasing prices.
Coke will lose the margin of its profit and can face loss
Strategies of Getting Goals i.e. High Profits
To increase the price is the least thing, which Coke can adopt. There are so many ways
through which Coke can increase the profits. Some major ways are as follows.
Volume can be increased
Interest level of consumers
To take part in energetic festivals
How to increase the volume of consumers?
Coke can increase the volume by expanding the industry of coke. Through
advertisements, offering different interesting things to attract people towards this product.
How to increase the interest level of consumers?
Coke is increasing the interest level of consumers by offering different flavor. For
example Coke is increasing the number of flavors in Fanta; this is one of the products
of coke. Through offering different flavors Coke can increase the Level of consumers and
through this profits can be gained
How to take part in energetic festivals?

30

Coke is already taking part in the festival like Basant since last 3 years. Coke offers
different attractive things in their festival and through this Coke gained high profit and
consumption of coke increased on these occasions. And this year in this year 2009
people were anxiously waiting that what interesting thing coke is going to offer.
Marketing strategy:
Our local marketing strategy enables Coke to listen to all the voices around the world
asking for beverages that span the entire spectrum of tastes and occasions. What people
want in a beverage is a reflection of which they are, where they live, how they work and
play, and how they relax and recharge. Whether you're a student in the United States
enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru
asking for a juice drink, or a couple in Korea buying bottled water after a run together,
we're there for you. We are determined not only to make great drinks, but also to
contribute to communities around the world through our commitments to education,
health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping
our business decisions to improve the quality of life in the communities in which we do
business. It's a special thing to have billions of friends around the world, and we never
forget it.
Market Positioning:
Product Range:
The total range of Coca Cola Company in India includes:
Coke.
Sprite.
Fanta.
Diet Coke.
And company offers their products in different bottle sizes these includes:

31

SSRB (standers size returnable bottle)


LRB (litter returnable bottle)
NRB (no return bottle) or disposable bottle
PET 1.5 (1.5 litter plastic bottle)
CANS (tin pack 330 ml)
Packing:
Coca cola products are available in different packing
24 regular bottle shell
6 bottle pack for 1.5 pets
12 bottles in a pack for disposable bottle
24 cans in one pack.
Pricing Strategy:
Trade Promotion:
Coca Cola Company gives incentives to middle men or retailers in way a they offer them
free samples and free empty bottles, by this these retailers and middle man push their
product in the market. And thats why coca cola seen more in the market. And they have a
good sale in the market because according to the expert which product seen more in the
market that sells more. Seen as sold They do agreements with a shop keepers and stores
to exclusive sale in that stores. These stores are called as KEY accounts in their local
language. And coke also invest heavy budget on these stores and offers them free samples
and free bottles and some time cash incentives.
Different Price in different seasons:

32

Some times Coca Cola Company changes their product prices according to the season.
Summer is supposed to be a good season for beverage industry in India. So in winter they
reduce their prices to maintain their sales and profit. But normally they reduce the prices
of their pet bottles or 1 litter glass bottle

Promotion strategies:
Getting shelves:
They gets or purchase shelves in big departmental stores and display their products in that
shelves in that style which show their product more clear and more attractive for the
consumers.
Eye Catching Position:
Salesman of the coca cola company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion:
Company also do sponsorships with different college and schools cafes and sponsors
their sports events and other extra curriculum activities for getting market share.
UTC Scheme:
UTC mean under the crown scheme, coca cola often do this type of scheme and they
offer very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc.
This scheme is very much popular among children.
Distribution Channels:
Coca Cola Company makes two types of selling
Direct selling

33

Indirect selling
Direct Selling:
In direct selling they supply their products in shops by using their own transports. They
have almost 450 vehicles to supply their bottles. In this type of selling company have
more profit margin.
Indirect Selling:
They have their whole sellers and agencies to cover all area. Because it is very difficult
for them to cover all area of India by their own so they have so many whole sellers and
agencies to assure their customers for availability of coca cola products.
Facilitating the product by infrastructure:
For providing their product in good manner company has provided infrastructure these
includes:
Vizi cooler
Freezers
Display racks
Free empty bottles and shells for bottles
Advertisement:
Coca Cola Company use different mediums:
Print media
Pos material
Tv commercial

34

Billboards and holding


Print Media: They often use print media for advertisement. They have a separate
department for print media.
POS Material: Pos material mean point of sale material this includes: posters and
stickers display in the stores and in different areas
TV Commercials: As everybody know that TV is a most common entertaining
medium so TV commercials is one of the most attractive way of doing
advertisement. So Coca Cola Company does regular TV commercials on different
channels.
Billboards and Holdings: Coca cola is very much conscious about their
billboards and holdings. They have so many sites in different locations for their
billboards.
Expectation from the coming years:
Every thing starts from the attitude of consumers behavior. And the basic key to attract
the consumers is to throw the money away. And positive feeling felling with the brand,
which they used to have Coke wants to advertise their products heavily in the coming
year. And it will take the 10% of their profits. And when we take it as a global level it is $
I billion. Coming year is the challenging year for the industry of Coke. They have to take
lots of decisions that how to increase the production and where they have to spend
money. For gaining success in coming year they have to have some important things like:
1. Loyal consumers are important for companys success.
2. Workers should be the brand centric not the promotion centric.
3. They should know how much to for the brand activities.
4. They should also know that how much to do with the promotion activities for brand.
How Coke Determine the Yearly Budget:
Coke determines its yearly budget by the
35

Sales volume
Profitability
Target volume
Sales Volume: Coke determines its yearly budget through the sales volume. They first
concentrate on the thing is what is the condition of their sales? if the condition is good
of their sales then they definitely increase their production and sales volume. Otherwise
they concentrate on their old strategies.
Profitability: The second thing through which they determines budget is the profit .if
they getting profits with the high margin, then they definitely want to increase their
profits in the next coming year. Every organization runs on the basis of getting high
profits. No organization wants to face Loss in their business. To get profit is the first
priority of the Coke.
Target Volume: To run the business every industry has some targets, which they want to
achieve in a specific time period. If industry achieves those goals in that period then for
the coming year it increases the volume of the target. So Coke Follow the same thing it
has also some goals and targets to achieve in the given time period. When they succeed to
achieve that target then they increase their target volume in the next year.
Sale Promotion Activities:
Coca Cola Cricket:
Cricket the most sought after; watched & played game in India .the game of cricket has
been owned by various brands in the industry for the promotion of their products over a
period of time. It has ranged from tobacco to lubricants to communication companies to
banks to airlines & lately to the beverage industry. The competition has become tougher
& tougher as the time has progressed.
Coca-Cola signed a sponsorship agreement with eight of Indias National cricket players.
Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it
36

consumers & masses invested in the opportunity and launched a massive campaign on
mass media showing all these cricket stars endorsing & complimenting Coca- Cola
brand. The Coca-Cola Company developed three TV commercials & four testimonial ads
with the player & ran them on the national net work during various cricket matches.
These bold steps taken by the Coca-Cola marketing unit acclaimed them many
acknowledgements across the board. This campaign helped Coca-Cola to establish its
association with the game & the player
Coca-Cola Concerts:
In distinct style, lyrics & songs have made him an instant hit among the masses in India.
His enormous popularity in the country & abroad is supported by Coca-Colas
commitment towards providing healthy & fun-filled entertainment for the youth of India.
Coca-Cola brought to his fans through holding concerts & featuring in a muchappreciated TVC & MMT featured throughout the country. The TVC campaign focused
on the hectic lifestyle of a pop star who found respite & relief through Coca-Cola in short
moments that he had to himself during a concert. Coca-Colas brand positioning of
providing deep down refreshment for the body, soul & mind were captured accurately in
the TVC & depicted aptly how the drink completes the moment for them.
Coca-Cola Food Mela:
With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the
people of India, to a festive food festival comprising of 50 restaurants, spread out all over
the bustling citys map. The promotion saw the avid families & friends enjoying the
delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.
Coca-Cola Basant Festival:
In February the month of basant the parks & horticulture authority in Lahore nominated
Coca-Cola the official sponsor of the basant festival .Coca-Cola added to the carnival
atmosphere by making the festival free to enter & decorating all main roads in Lahore
with illuminated kites. Coca-Cola also hosted a concert of pop idol, had childrens parade
& held the Coca-Cola kite flying championship during the basant festival. Now where
37

there is basant there is Coca-Cola, it has been impossible to envisage basant without
Coca-Cola. Coca-Cola give the more refreshing flavor to the colors of basant by adding
more life to the festival, giving the consumer a unique experience which they had never
tasted before.
Coca-Cola GO-RED:
Quenching the thirst of motorist, pedestrians & passerbys during hottest summer season,
Coca-Colas GO-RED teams went out into the cities main quadrants to serve &
refresh on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM
announcement campaign the GO-RED stall, served well to promote the Coca-Cola
industry.
Coca-Cola Party in a Park:
Coca-Cola created an experiential musical evening, where Junoon performed. This
program was recorded and one-hour program shown in the national TV for free.10
million households saw Coca-Cola Party in a Park while 10 thousand people attended
the event.
Coca-Cola Shopping Festival:
Coca-Cola hosted The Coca-Cola Shopping Festival Indias first shopping festival, a
resounding success with tempting discounts, live music, great prizes & fire works.
Liberty marketing was a hive of activity during the weeklong shopping extravaganza. The
in augural event proved so popular that it is now set to become an annual fixture.
CSR in Coca Cola:
On February 18, 2008, The Hindustan Coca-Cola Beverages Pvt. Ltd (Coca-Cola India),
was awarded the Golden Peacock award (popular for consumer goods) for Corporate
Social Responsibility (CSR) for the several community initiatives it had taken and its
efforts toward conservation of water. This award appreciates companies for their efforts
and results that they have worked for their employees, communities, businesses and for
public interest. Atul Singh (Singh), CEO, Coca-Cola India, said, "Coca-Cola India has
38

always placed consumer benefits and care on good citizenship and has undertaken several
new initiatives for community development and inclusive growth (Atlanta, 2006, p 1316). We are very happy to receive this grand global award and are grateful at being
noticed for the little contributions that we have been able to make to preserve and protect
the environment and toward social development."
Coca-Cola India was established as the Indian subsidiary of the US-based Coca-Cola
Company (Coca-Cola) in 1993. As of 2008, Coca-Cola India had 24 bottling operations
of its own and 25 bottling operations owned by its franchisees. In addition to beverage
brands like Coke, Sprite, Fanta etc., Coca-Cola India had a strong local cola brand Thums
Up, the Kinley brand of mineral water, energy drinks, and powdered concentrates.
Keeping in the mind that they are the largest beverage company and with so many things
and strategies to compete with other international brands, they say they have given
special attention to CSR and strongly works on the achievement of society welfare.
According to the company, it was aware of the environmental, social, and economic
impact caused by a business of its scale and therefore it had taken up a wide range of
initiatives to improve the quality of life of its customers, the workforce, and society at
large. Since the company used large amounts of water and energy in its beverage
production and tons of packaging material for its products, it had taken up several
initiatives to act as a responsible company and reduce its environmental impact, it said. In
addition to water, energy, and sustainable packaging, Coca-Cola India also focused on
several community initiatives in India as part of its social responsibility initiatives.
The issue of global warming has been taken up a terrible state and it is necessary for
every large or small corporate to take some necessary steps for improving the climate
condition of earth which is the main cause of global warming. In support of this objective
the Coca-Cola's corporate social responsibility (CSR) is a further initiative in India. It
explains the action and strategies taken up by Coca-Cola India's management and
employees to contribute to the society and community in which the company operates.
As Globalization is increasing the competition, it has become duty of every FMCG or
consumable goods company to know the public interest and take care of their

39

requirements and needs. Same goes with Coca-Cola the world's largest beverage maker,
be it in India or otherwise. Considering Indian scenario (Coke) was engaged in a number
of community-focused CSR initiatives. CSR strategies and initiatives were further taken
seriously and well drafted since 2003 when the criticism and issues such as presence of
pesticide in the beverages and water resource contamination came in front in India, all of
a sudden companys started loosing their faith and trust. Further political parties in India
started to make issue out of it and started taking advantage of the situation which affects
public interest towards soft-drinks. To address these issues and to rebuild brand image in
India, Coke come-up with number of environment-focused CSR initiatives, like
execution of eKO management system in 2003.Even they adopted the strategy to use less
water or reduce the water consumption in the system. The company has used the CSR as
a tool for its sustainability in India or only an option to avoid allegations of pesticides and
other issues. Though, the company has faced many challenges preparing to implement
new CSR strategy in India.
The products of Coca-Cola have been criticized by several sources for various reasons.
Some of the reasons include negative affect on health due to the consumption of its
products, labor exploitation, usage of pesticides in manufacturing products with high
degree, establishing the plants in Nazi Germany where the labor employed as slave labor,
destruction of environment, doing monopolistic business practices, hiring anti social units
for exploiting the trade union leaders and marketing of unhealthy products to children.
In India, the Coca-Cola's operations have been highlighted and scrutinized when many of
the communities were experiencing severe water problems such as water shortages and
the contamination of groundwater & soil. These assertions were the result of Coca-Cola's
bottling operations across that region where the company had its bottling plant. In order
to hold the Coca Cola Companys action, a massive movement had been emerged across
the nation.
The Kerala state had imposed the ban of companys operations, which is still running in
the Supreme Court. One of the largest bottling plants, the Plachimada plant in Kerala
state, was remained shut for 18 months since the village council had refused the

40

application for renewing the license as the plant under the allegations of water shortages
and pollution.
In Sivaganga District of Tamil Nadu state had been protested against the Coca Cola
operations in India due to the fear of water depletion and contamination. The president of
the Village council, Mr. V. Kamson was died under mysterious circumstances when by
giving the statement against the upcoming Coca-cola bottling plant in the village. When
the investigation had been started for his murder case then it was found that the he was
under immense pressure from the public, police and other quarters and hence given the
statement. The other five Indian states had banned the companys operation and the sale
of Coca Cola drinks in schools, colleges and hospitals.
Health effects:
There is several health effects from the Coca cola drink as they are hazardous to the
human health. Several court cases have been filed against the Coca Cola drinks due to the
effects on health. These effects have been tested in the laboratory by the doctors. Each of
them is explained as below:
Tooth Decay and Acidity:
Since 1940, there has been numerous court cases filed against the Coca-Cola Company
alleging that the drink produce acidity in the human body and it could be dangerous after
certain limit. In many of the case the evidences have been produced in the court, though
there are no serious action have been taken against the company. The evidences were
weak as they were in-sufficient to substantially prove that the drink is harmful for the
human body. The evidence could only prove that the drink was as mush hazardous as like
the acidic fruit juices. Frequent drinking of the Coca Cola drink results tooth decay which
has already been proved under the medical laboratories though still the company is
successful in selling its drink in the market.
Using High Degree of Fructose Corn Syrup:

41

During the decade of 1980 to 1990, the company was using the high degree of fructose
corn syrup in its drink as it works as a sweetener in the drink instead of using sucrose
which is considered as more feasible sweetener in the drinks. The company had increased
usage of fructose in its drink for reducing its manufacturing cost. Use fructose cause the
various diseases as like obesity and diabetes since it reacts differently in the human body.
Apart from this the fructose corn syrup is produced from genetically altered plants which
is again increased the risk of diabetes in the human body.
Environmental issues:
There are several environment issues are occurring from the manufacturing plant of Coca
Cola in India. The water used by the Coca Cola consists of high degree of chemicals and
pesticides and the aquifers are drying up the land which enforced the farmers to relocate
themselves.
Usage of Pesticides:
A non-governmental body called Centre for Science and Education in the India had
investigated the soft drink bottled in the country in the year 2003 and found that the
companies like Coca Coal and Pepsi Co are using high degree of pesticides such as 30
times more than the permissible limit. These pesticides include toxins such as lindane,
DDT, malathion and chlorpyrifos, which cause the harmful disease such as cancer and a
breakdown of the immune system. According to the organization, the company was using
that degree of pesticides usage only in India as it did not find the same results in the test
conducted for US based product.
Consequently many of the states had banned the sale of Coca Coal drinks in the year
2006 however which had been turned off by high court concludin that the Federal
government can only ban the food products.
Usage of Water:
Coca Cola was using the high volume of ground water which poses the threat for the
farmers since ground water is the natural resource for irrigation and use of high volume

42

of ground water might cause the lowering the level of ground water. Further the waste
water after the manufacturing of Cola drinks contained the harmful chemicals which were
posing the threat fir the local communities. Consequently in the yea 2004 the state
government of Kerala had shut down the $15 million bottling plant of Coca Cola by
alleging the company that the waste water was not good for the health of communities
residing near the plant.
In the subsequent year 2005 the high court had rejected the state government allegation
for Coca Cola company as the state government was blaming that the usage of volume of
water in the drink manufacturing causing the dryness of wells and communities were also
facing the water scarcity. The high court had asked a scientific study to determine the
reason for such issues. The study revealed that the actual problem for water scarcity was
lack of rainfall in the area. However court had given the verdict in the favor of the
company and asked to relocate its plant away drought-stricken areas. In the city of
Varanasi in UP, many NGOs and local water officials had also alleged the company by
saying that the land water around the communities is polluting from the waster water
released by the bottling plant of Coca Cola. Also there is a drainage problem from treated
wastewater several years ago however the company had prepared a long pipeline to
correct it. The local water officials stated the manufacturing of one liter Coca Cola drink
is required nine liter of water however the company replied that only 3 liter of water is
sufficient for producing one liter of Cola drink. Though Coca-Cola India claimed that it
had taken several such efforts, it continued to attract criticism from several quarters. The
company was censured for depleting groundwater tables, leaving the local communities
with no access to drinking water and water for farming which was their primary source of
income.
Packaging:
The packaging used by the Coca cola Company is also affecting the environment as it has
a significant environmental impact though the company is continuously trying to
introduce the mechanisms such as container deposit legislation for the improvement in
the packaging process.

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A criticism in context of Indias past:


The above mentioned criticisms are the reminder of India's sometimes has strong
relationship with the huge multinational companies. However it has been some argued
that the Coke and Pepsi have been the major targets in the past as they are the world
known companies for food products and can draw the plenty of attention.
In the year 1977, Coca Cola was the first soft drink manufacturer that had left the country
after the order of Indian government as the company was posing the threat for the
economic environment of the country. Immediately the company had to dilute its stake
from the Indian unit as per the foreign exchange act FERA. In the year 1993 the company
returned back to India under the liberalization policy of the country, though this time the
company had made the plans to upgrade its drinks in the Indian market by understanding
its corporate social responsibility.
Corporate Social Responsibility (CSR), also known as corporate responsibility, corporate
citizenship, responsible business, sustainable responsible business (SRB) and corporate
social performance' is a form of corporate self-regulation integrated into a business
model. Ideally, CSR policy would function as a built-in, self-regulating mechanism
whereby business would monitor and ensure their adherence to law, ethical standards, and
international norms. Business would embrace responsibility for the impact of their
activities on the environment, consumers, employees, communities, stakeholders and all
other members of the public sphere. Furthermore, business would proactively promote
the public interest by encouraging community growth and development, and voluntarily
eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR
is the deliberate inclusion of public interest into corporate decision-making, and the
honoring of a triple bottom line: People, Planet, Profit.
The practice of CSR is subject to much debate and criticism. Proponents argue that there
is a strong business case for CSR, in that corporations benefit in multiple ways by
operating with a perspective broader and longer than their own immediate, short-term
profits. Critics argue that CSR distracts from the fundamental economic role of
businesses; others argue that it is nothing more than superficial window-dressing; others
44

argue that it is an attempt to pre-empt the role of governments as a watchdog over


powerful multinational corporations.
In 2003, In India (Coke) company came in for severe criticism from activists and
environmental experts who charged it with depleting groundwater resources in the areas
in which its bottling plants were located, thereby affecting the livelihood of poor farmers,
dumping toxic and hazardous waste materials near its bottling facilities, and discharging
waste water into the agricultural lands of farmers. Moreover, its allegedly unethical
business practices in developing countries led to its becoming one of the most boycotted
companies in the world.
Further when it has been stated that soft drinks carry pesticides in it and is not good for
health. Pressure was on most of the soft drink manufacturers along with Coca-Cola India.
Indian community starts criticizing the soft drinks and brand image slowly started to fall.
Thus it became moral responsibility for the companies to come out with strategies to
manage this situation.
Corporate Social Responsibility Initiatives of Coca Cola in India:
Environmental Responsibility Initiatives:
Environmental responsibility was a key aspect of Coca-Cola India's CSR initiatives.
Since Coca-Cola India was involved in beverage production, its operations affected the
environment in many ways such as through excessive levels of water consumption,
wastewater discharge, high energy consumption, discharge of effluents, and greenhouse
gas (GHG) emissions due to the use of refrigeration, vending machines, air conditioning
equipment, etc. With the criticism of Coca Cola India, there are the following challenges
for the company:

Health and Wellness Debates (Obesity and Diabetes Debate)

Usage of Energy and Climate Change

Water Risk Management

45

Packaging Waste

Supplier Audits

Driver Safety Programmes

Further in response of the above mentioned allegations and criticism the company has
taken the following initiatives:

Continued implementation of UNESDA Commitments

Using the alternative technology for plant and cold drink equipment

Watershed protection

Expanding the close loop bottle to bottle recycling

Worked with the several NGOs to extend the audit program of the company

OHSAS implementation

When the Coca Coal returned back to India in the year 1993 under the liberalization
policy the company had decided to meet the above mentioned challenges from its
corporate social responsibility in each of the following areas:

Marketplace: The Company has made the commitment to provide the products
and services which will meet the beverage needs of consumers therefore the
company will provide the sound and rewarding business opportunities which will
be in the benefits for customers, suppliers, distributors and local communities.

Workplace: The Company will foster to open an inclusive environment, where


the company will produce highly motivated, productive and committed workforce
that will ultimately drive the business success through superior execution of its
policy.

46

Environment: The Company is committed to conduct business in such a way that


it will protect and preserve the environment. In order to integrate the principles of
environmental stewardship and sustainable development for making the business
decisions and processes, the company will make the specialized rules to follow.

Community: The Company will invest time, expertise and resources for the
betterment of economic conditions, providing opportunity, improve the quality of
life and foster goodwill in communities through locally relevant initiatives.

CSR Initiative of Coca Cola:


Coca Cola is leading in CO2 Reduction Strategy:
In the year 2006, the company had reported CO2 emission in accordance with the
Greenhouse Gas Protocol (GHG) that had allowed the comparisons between industries
and accurate worldwide CO2 accounting. Also the company already meets the FTSE4
Climate Change Criteria in high impact industries.
Reducing Air Pollution:
The company aims to reduce its emissions of air pollutants by 65% in each subsequent
year since 1997. The company aims to stop the usage of coal as an energy source for
bottling plants and planning to reduce the usage of oil fuel by replacing it with natural gas
gradually. The company is continuously maintaining the bailers and their emissions are
verified as per the local legislation. An investigation is being conducted by the company
for renewable energies where technically and economically it is possible. The company
has improved the efficiency of its bottling plant for reducing the CO2 emission which
will help in improving the climate conditions.
Reducing Indirect Impacts from Packaging:
Coca Cola is using the glass bottle instead of plastic bottles for recycling purpose which
has reduced the packaging waste in the country. Moreover it will help to reduce the

47

energy usage as the recycled material requires less grey energy rather to use the fresh raw
material.
Reducing the Impact of Cold Drink Equipment:
The company Coca-Cola is committed to reduce the global warming which is directly
associated with its cooling equipment. The CFC-containing fridges which are being used
by the company has been phased out and banned in insulation foam since 2006. The
company is working with its suppliers on coolers that can work with 25-30% lower
energy. The company has already installed the energy saving device across its
manufacturing plant.
Marketplace Initiatives:
Coca Cola is committed with the UNESDA for its action on Diet, Physical Activity and
Health which includes the following:

Do not marketing or communicating its product aiming to target the children

Do not influence the children or the parents, guardians and other carers

Do not engaging in direct commercial activity in primary schools

Using third-party distributors to make the audience aware of these commitments

Addressing Obesity:
In order to reduce the obesity problems, the company has taken the following initiatives

Sales and marketing in a responsible manner by awareing the audience with obesity

Providing nutritional information in its labeling

Quality Standards:

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Coca-Cola is currently practicing the high standards for maintaining the quality and food
safety by developing the quality Policy. With its quality initiatives the company is
certified with ISO 9001 and Quality System (TCCQS)1 certificates.
Challenges and issues in marketing of Coca Cola:
Coca-cola has signaled its intent to continue pursuing the lucrative 'energy drink'
beverage market, by releasing a new chocolate flavored energy drink 'full throttle'. The
brand which has made some headway in the states (USA) is now looking at a product line
diversification to increase attractiveness and product facings. The strategy behind the
move poses challenges to market leader Red Bull, who stick staunchly to their core
product range. Should they react, should they diversify their range or should they sit back
and watch? This case presents the challenges the Coca-Cola Company faced in India. Not
only was Coke up against its nemesis, Pepsi, it also had to compete with hundreds of
local brands, many of which did not pay taxes. These local brands were generically called
tuba nas. The case provides background information on the history of Cake in India,
trends in the India soft drink market, and on competition by Pepsi and the many local soft
drink firms. In addition, Coke's strategies for competing are outlined. The student is
asked to analyze the information presented in the case and to make recommendations to
Coke on how to better compete in India.
Coke has recently started to heavily invest in the Indian market. India was actually a low
priority region for Coca-Cola until 1997 when citing rapid population growth and
disproportionately low sales, the company developed a new market strategy aiming to
double sales in 5 years. Indeed, per capita consumption in India has grown from 18
servings in 1986 to 37 servings in 2008.15 Unit case volume sales are up 4 percent from
2006 to 2008. This growth was predominantly driven by 23 percent unit case volume
growth in U.P., after Coca-Cola opened a new divisional office in Mumbai. Coke has
clearly decided to focus its energies on emerging markets throughout the world and Coke
can honestly brag about increasing its sales volume on a global scale. However, as new
countries are aggressively targeted by Cokes marketing machine, dietary patterns
change, and the rate of western-style diet-related diseases increase.

49

DATA ANALYSIS
Q1. Please tell me for how many years you have been working in this organization?
Less than 2 years

20%

2 to less than 4 years

40%

4 to less than 6 years

25%

More than 6 years

15%

Working period in the organization

The above mentioned graph shows that 40% respondents are working in the organization
from 2 years to less than 4 years and 15% respondents working in the organization more
than 6 years.

50

Q2. Please tell me from the following that which one is the most competitive
advantage for Coca Cola in soft drink market?
Local Expertise

12%

Business Community

14%

Service Quality

17%

Flexibility

19%

Cost Advantage

23%

Value Added Services

6%

Knowledge of Expert Services

8%

Others

1%

Most Competitive Advantages

The above mentioned graph shows that according to the 23% respondents cost advantage
is the most competitive advantage for Coca Cola and according to the 23% respondents
17% respondents service quality is the most competitive advantage for Coca Cola.

51

Q3. Please tell me from the above mentioned point which one is the most
advantageous for Coca Cola to market and place its product among its customers?
o Product Quality: They can offer higher product quality because they have an
established base with an office, workshop, or storage facility in the area where
their customers are located.
o Flexibility: They are open for business. The company requires no or short setup
times. They are more readily available to provide required services. They can
react quickly to changing customer needs and requests.
o Cost Advantages: Transportation costs incurred in providing a service or
delivering goods are usually lower than for them. In addition, if customers
factored potential time savings (travel time, shipping time) into their calculations,
they may realize that they can benefit from significant cost advantages by
sourcing locally.

52

Q4. Please tell me from the following that which one is the most competitive
disadvantage for the company?
Lack of Customer's Knowledge

6%

Limited access to skills

10%

Government regulation

13%

Market competition

16%

Scarcity of resources

22%

Economic scenario

19%

Production process

9%

Technology

4%

Others (Please specify)

1%

Competitive Disadvantages

The above mentioned graph shows that according to the 22% respondents scarcity of
resources is the most competitive disadvantage for Coca Cola but according to the 9%
respondents production process is the most competitive disadvantage for Coca Cola.

53

Q5. Please tell me your current year sales level as compared to previous five year
average.
Below Average

45%

Average

35%

Above Average

15%

Unknown

5%

Current year sales level as compared to previous five year average

According to 35% respondents, the current year sales level as compared to previous five
year is average but 45% replied that the current year sales level as compared to previous
five is below average.

54

Q6. How would you describe the present economic environment insofar as your
company is concerned?
Growth

38%

Recession

39%

Depression

5%

Stagnation

17%

Inflation

1%

Present economic environment

39% respondents describe the present economic environment in so far as recession but
38% respondents describe the present economic environment in so far as growth.

55

Q7. Please tell me about the Changes in your marketing strategies over time?
Value marketing

25%

Branding & differentiation

30%

Raising Prices

20%

Low Cost Leadership

10%

Competitor Benchmarking

15%

Changes in marketing strategies

According to 30% respondents, branding & differentiation changes in their marketing


strategies but 20% respondents replied that raising prices changes in their marketing
strategies.
Q8. Please tell me, your organization taken what actions in response to the sales
level?
56

Cutting cost

30%

Introduction of new product

17%

Investment plans on hold

21%

Reducing prices

25%

Merger with other

7%

Response to sales level

30% respondents replied that their organization using cutting cost strategy in response to
the sales level but 25% replied that their organization using reducing prices strategy in
response to the sales level.
Q9. Please tell me about changing use of the marketing tool kit?

57

Internet/Electronic media

30%

Market Research

25%

Direct mail

14%

Trade shows

10%

Telemarketing

21%

Changing use of the marketing tool kit

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FINDINGS
1. The above mentioned graph shows that 40% respondents are working in the
organization from 2 years to less than 4 years and 15% respondents working in
the organization more than 6 years.
2. The above mentioned graph shows that according to the 23% respondents cost
advantage is the most competitive advantage for Coca Cola and according to the
23% respondents 17% respondents service quality is the most competitive
advantage for Coca Cola.
a. Product Quality: They can offer higher product quality because they have
an established base with an office, workshop, or storage facility in the area
where their customers are located.
b. Flexibility: They are open for business. The company requires no or short
setup times. They are more readily available to provide required services.
They can react quickly to changing customer needs and requests.
c. Cost Advantages: Transportation costs incurred in providing a service or
delivering goods are usually lower than for them. In addition, if customers
factored potential time savings (travel time, shipping time) into their
calculations, they may realize that they can benefit from significant cost
advantages by sourcing locally.
3. The above mentioned graph shows that according to the 22% respondents scarcity
of resources is the most competitive disadvantage for Coca Cola but according to
the 9% respondents production process is the most competitive disadvantage for
Coca Cola.
4. According to 35% respondents, the current year sales level as compared to
previous five year is average but 45% replied that the current year sales level as
compared to previous five is below average.

59

5. 39% respondents describe the present economic environment in so far as


recession but 38% respondents describe the present economic environment in so
far as growth.
6. According to 30% respondents, branding & differentiation changes in their
marketing strategies but 20% respondents replied that raising prices changes in
their marketing strategies.
7. 30% respondents replied that their organization using cutting cost strategy in
response to the sales level but 25% replied that their organization using reducing
prices strategy in response to the sales level.

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RECOMMENDATION

Coke is a mature product, so your task is to penetration into new markets. Don't mean to
bore you, but here's part of what I published on Coca Cola's challenges in India - where
Coke has been unable to take its share. My strategy recommendations for the new
president of Coca-Colas Indian subsidiary are constrained by limited knowledge. And, to
say that American market leaders pursue a differentiation strategy is fine, but in
developing a winning strategy in India, the same rules may apply. The main objective is
to establish the brand name. The best strategy places product of uniform quality in every
corner of India. Conditionally, Coca-Cola must accept the costs and logistical challenges
of distributing to every conceivable market. Selling costs may be higher in remote
regions, but the quality product must be available, and it must be reasonably priced.
Additionally, Coke can look to the competition for clues as to what products they should
phase out, so that they can utilize plant capacities for strong sellers and new innovative
offerings. That said, I think that the best differentiation strategy is brand recognition,
which requires promotion; therefore, the sponsorship of local, regional, and national
events should continue. Similarly, the sponsorship of sports teams is effective in Latin
America, and product endorsement by well-known athletes is yet another way to
strengthen the connection between the product and the consumer. In conclusion, the
Indian economy presents the best possible scenario for producers given that the people
enjoy increasing personal wealth. Therefore, the best strategy employs a promotional
strategy that leads people to believe that Coke products are simply better.

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CONCLUSION
Coca-Cola has launched a new application to promote its Sprite band, showing that
mobile marketing has become an integral part of its marketing strategy. A marketing
spokesperson for Coca-Cola recently said that smart marketers are looking at all of the
different ways that they can communicate with consumers including traditional, in-store,
out-of-home as well as online and mobile methods. Savvy marketers are tapping into all
of the new and old resources available. Since Sprite is focused on youth, Coca-Cola is
targeting mobile audiences in particular and this is the first large-scale program of this
kind that the soft drink giant has launched in the India.
The marketing campaign works by having consumers shake, tilt or tap their iPhone
screen to create a combination rhythm and melody track that can be uploaded to the web
for sharing and listening. Users can unlock more beats by twisting off the cap off of a
Sprite bottle and then texting in a keyword followed by the code under the cap. Sprite
will then give the user a code that can be used to unlock even more beats. This move by
Coca-Cola shows that mobile marketing is the next biggest thing for large, mainstream
companies are taking advantage of. Mobile marketing has been quite popular and
common all across Asia and Europe and it slowly but surely gaining a presence in the
Indian markets. For example a coca cola brand may be said to reduce hangover after a
drinking spree and this would really increase the consumption level of the product, this
message should be used to market the product and the facts being provided about the
product should be those aimed at solving problems faced by the masses.
Market segmentation has not been of much emphasis in the company, the company
should subdivide its market and provide products that meet special needs of its products,
this is already evident in the fast food market whereby purchases can be made online and
delivery is made within a few hours, for this reason therefore the company should try to
make products that are to be consumed by specific groups and also that the price level
should differ depending on the market segment. Advertising should also be accompanied
by promotional activities that are offered by the company, in most cases advertisement
only inform the consumers but promotions such as periodical price cuts of the product are
62

not included in this adverts, example buy one coke and get one free are not evident in the
companies strategy, this would be a means in which to share with the customer the profits
made by the company. This is possible because in most cases the advertising costs are
even higher than the production costs, most of the funds are used up in advertising. Other
forms of advertising should include extensive internet advertising, due to the changes in
technology many companies have decided to advertise online but coca cola tends to lag
behind in this strategy, there should also be the extent to which one can purchase and
order products online and delivery made at home like in the fast food industry, for this
reason therefore there is need to change the mode of advertising and adopt with the
current change in the world today.
Having considered the above discussed likely solutions to improve the current
advertisement strategy there is need for the company to involve the card slacking
technique in their advertisement, this should involve providing facts to the consumer
regarding the advantages gained from drinking the products, this benefits should not only
be monetary gains through discounts but also gains in terms of health and also to solve
certain problems, when consumers are provided with this information then the ales levels
will definitely rise and this will create a niche market.

63

ANNEXURE
QUESTIONNAIRE
Q1. Please tell me for how many years you have been working in this organization?

Less than 2 years

2 to less than 4 years

4 to less than 6 years

More than 6 years

Q2. Please tell me from the following that which one is the most competitive advantage
for your organization?

Local Expertise

Business Community

Service Quality

Flexibility

Cost Advantage

Value Added Services

Knowledge of Expert Services

Others (Please specify)

Q3. Please tell me from the above mentioned point which one is the most advantageous
for your organization to market and place its product among its customers?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
64

Q4. Please tell me from the following that which one is the most competitive
disadvantage for your organization?

Lack of Customers Knowledge

Limited access to skills

Government regulation

Market competition

Scarcity of resources

Economic scenario

Production process

Technology

Others (Please specify)

Q5. Please tell me your current year sales level as compared to previous five year
average.

Below Average

Average

Above Average

Unknown

Q6. How would you describe the present economic environment insofar as your company
is concerned?

Growth

Recession

Depression

Stagnation

65

Inflation

Q7. Please tell me about the Changes in your marketing strategies over time?

Value marketing

Branding & differentiation

Raising Prices

Low Cost Leadership

Competitor Benchmarking

Q8. Please tell me, your organization taken what actions in response to the increase sales
level?

Cutting cost

Introduction of new product

Investment plans on hold

Reducing prices

Merger with other

Q9. Please tell me about changing use of the marketing tool kit?

Internet/Electronic media

Market Research

Direct mail

Trade shows

Telemarketing

Others

66

BIBLIGRAPHY
Andrew Collins, Competitive Export Marketing Dynamic Strategies for Winning
and Keeping Customers, McGraw-Hill,1992
Doctor, Vikram. Competing on price is the new name of the game, Economic
Times, 7 February 2001.
Andrew Wernick (1991) Promotional Culture: Advertising, Ideology and
Symbolic Expression, McGraw Hill publishers, New York
Carroll Glynn (2004) Public Opinion, McGraw Hill publishers, New York
Otto Kleppner (1990) Advertising Procedure, Prentice Hall publishers, New York
WEBSITES:
http://www.articlesbase.com/management-articles/coca-cola-marketing2124317.html
http://www.scribd.com/doc/10552013/Coca-Cola-Marketing-Strategies
http://www.coca-colaindia.com/
http://www.thecoca-colacompany.com/citizenship/

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