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1.

1 INTRODUCTION TO WAVE BEVERAGES PRIVATE LIMITED


The wave group is the main distributor of Coca-Cola Products in Jalandhar. The Wave Group is a
business

conglomerate

that

also

deals

in

the

manufacturing, real

estate, education, sports and entertainment industries. It was founded by the late Mr. Kulwant
Singh Chadha in 1999 and is based in India. Four decades later, the Wave Group has grown to
include a number of businesses including sugar manufacturing, distilleries and breweries, real
state, malls and multiplexes, beverages, sports, education andentertainment under Vice Chairman
Mr. Monty Chadha.

1.1.1 VISION, MISSION & VALUES


VISION
To make every Indians first choice of refreshment available within easy reach.
MISSION
To build a consumer-driven, customer-focused, profitable, sustainable and socially responsible
business in india
VALUES
Leadership, Empowerment, Passion for winning, Citizenship, Integrity, Accountability,
Teamwork

1.1.2 INTRODUCTION TO COCA- COLA


The Mission Statement of the Coca Cola Company
Our mission statement is to maximize shareowner value over time. In order to achieve this
mission, we must create value for all the constraints we serve, including our consumers, our
customers, our bottlers, and our communities. The Coca Cola Company creates value by
executing comprehensive business strategy guided by six key beliefs:
1. Consumer demand drives everything we do.
2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-todrink beverages they
want to drink throughout the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
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6. We will lead as a model corporate citizen.


The ultimate objectives of our business strategy are to increase volume, expand our share of
worldwide nonalcoholic ready to drink beverages sales, maximize our long-term cash flows, and
create economic value added by improving economic profit. The Coca Cola system has more
than 16 million customers around the world that sells or serves our products directly to
consumers. We keenly focus on enhancing value for these customers and helping them grow
their beverage businesses. We strive to understand each customers business and needs, whether
that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging
market. There are nearly 6 million people in the world who are potential consumers of our
companys product. Ultimately, our success in achieving our mission depends on our ability to
satisfy more of their beverage consumption demands and our ability to add value for customers.
We achieve this when we place the right products in the right markets at the right time.

COCA COLA INTERNATIONAL

HISTORY: Coca-Cola Enterprises, established in 1886, is a young company by the standards of


the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of CocaCola that is the foundation for this Company. The Coca-Cola Company traces its beginning to
1886, When an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for
sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga
businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to
bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The
Coca-Cola bottling system continued to operate as independent, local businesses until the early
1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged
some of its company owned operations with two large ownership groups that were for sale, the
John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca- Cola
Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a splitadjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In
December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling
Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler
consolidation. As part of the merger, the senior management team of Johnston assumed
responsibility for managing the Company, and began a dramatic, successful restructuring in
1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion The Coca3

Cola Company is the worlds largest beverage company. They operate in more than 200 countries
& markets more than 2800 beverage products. Headquartered at Atlanta, Georgia, they employ
approximately 90500 employees all over the world. It is often referred to simply as Coke or (in
European and American countries) as Cola or Pop.

MARKET SHARE:

Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share.
This company controls about 59% of the world market.
Global market share:
The market of the company is geographically vast and it is controlling it with great success. In
2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases
and generated record volumes. Because carbonated soft drinks are the largest growth segment
within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they
are focusing more on this and they are continually increasing the pace because they know that
accelerating this pace is crucial to their future success. Thus they are increasing their market day
by day. The operation income earned by Coca Cola
Company can be illustrated by the following pie chart.
Figure 1.1: Operating Income

This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink
Company. The global unit sale of the Coca Cola Company is increasing from the last ten years.
In 2002, the company had worked with their bottlers to turn good intentions into reality by
improving the system economics. The results in 2002 reflect this steadily improving and
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mutually constructive relationship between the Company and their bottling partners. The main
reason behind this relationship is to continue realizing shared opportunities for growth, with
closer coordination of operations including customer relationships, logistics and production.
1.1.2.1
EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS )
Political Analysis:
Non-alcoholic beverages fall within the food category under the FDA. The government plays a
role within the operation of manufacturing these products in terms of regulations. There are
potential fines set by the government on companies if they do not meet a standard of laws.
The following are some of the factors that could cause Coca- Cola company's actual results to
differ materially from the expected results described in their underlying company's forward
statement:

Changes in laws and regulations, including changes in accounting standards, taxation


requirements, (including tax rate changes, new tax laws and revised tax law interpretations)

and environmental laws in domestic or foreign jurisdictions.


Changes in the non-alcoholic business environment. These include, without limitation,
competitive product and pricing pressures and their ability to gain or maintain share of sales

in the global market as a result of action by competitors.


Political conditions, especially in international markets, including civil unrest, government
changes and borders. Political structure and legal considerations also have impinged on
Coco-Cola Companys strategies. Governments of some Arab nations boycotted Coca-Colas
products due to a political dispute and discontented with the company for maintaining
distributors in Israel.

Economical Analysis

Being flexible and willing to change to satisfy consumers needs, has enabled Coca-Cola to
exploit the economies of scale that was gained by its global marketing and at the same time
making its products appeal to local taste, which these have earned the company an enormous
profits quarterly. As Coca-Cola has expanded over the decades or even nearly a century, the
company has benefited from the various cultural insights and perspectives of the societies in
which business is done. No doubt of the remarkable experience it has, it is still very committed
to local markets, to paying attention to what people from different cultures and backgrounds like
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to drink, and where and how they like to drink it, to remain competitive and to develop more new
drinks to satisfy its markets. Now, the estimated brand equity of Coca-Cola is $84billion, market
share of more than 50 percent in beverage industry globally and about 70 percent of its income
comes from countries outside United States. Every 10 seconds, 126,000 people in the whole
world, choose to reach out for one of The Coca-Cola Company brands, and it is the companys
mission to make that choice exciting and satisfying, every single time. Previously the U.S.
economy was strong and nearly every part of it was growing and doing well. However, things
changed. Before the attacks on September 11, 2001, the United States was starting to see the
economy recover slightly and it is only just recently that they achieved the economic levels.
Consumers are now resuming their normal habits, going to the malls, car shopping, and eating
out at restaurants. However, many are still handling their money cautiously. They believe that
with lower inflation still to come, consumers will recover their confidence over the next year. As
researching for new products would cost less the Coca- Cola Company will sell its products for
less and the people will spend as they would get cheap products from Coca-cola.

Social Analysis for Coca-Cola:

Foreign environment factors have influenced the Coca-Colas strategies in international


marketing. Culture has a tremendous effect on peoples preferences and perception. Language is
one of the aspects of culture that marketers must take care of, in term of translating product
name, slogans and promotional messages so as not to convey the wrong meaning. Coca-Cola did
not look much into this aspect when entering into the markets of countries like China and Taiwan
as the literal translation of Coca-Cola in Chinese characters mean, bite the wax tadpole.
Changes are necessary in international marketing for consumers products, as it is important that
the products suit ones taste, preferences and fulfill ones needs. Coca-Cola has continued
changing, improving and developing new drinks to appeal to local tastes. After discovering that
Coke did not appeal as much to Japanese consumers, Coca-Cola developed over 30 new drinks
for the Japanese market, which inclusive of Asian tea, English tea, coffee and fermented-milk
drink. In China, Coca-Cola has also begun the similar strategy of introducing beverages
developed for the taste buds of local market. It launched a fruit juice drink called Tian Yu Di
(Heaven and Earth) specifically for the Chinese market with planning of introducing the market
with a Chinese iced tea and soy milk drink.
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Many U.S. citizens are practicing healthier lifestyles. This has affected the non-alcoholic
beverage industry in that many are switching to bottled water and diet colas instead of beer and
other alcoholic beverages. Also, time management has increased and is at approximately 43% of
all households. The need for bottled water and other more convenient and healthy products are in
important in the average day-to-day life. Consumers from the ages of 37 to 55 are also
increasingly concerned with nutrition. There is a large population of the age range known as the
baby boomers. Since many are reaching an older age in life they are becoming more concerned
with increasing their longevity. This will continue to affect the non-alcoholic beverage industry
by increasing the demand overall and in the healthier beverages.

Technological Analysis for Coca-Cola

Some factors that cause company's actual results to differ materially from the expected results
are as follows:

The effectiveness of company's advertising, marketing and promotional programs. The new
technology of internet and television which use special effects for advertising through media.
They make some products look attractive. This helps in selling of the products. This
advertising makes the product attractive. This technology is being used in media to sell their

products.
Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier

to carry and you can bin them once they are used.
As the technology is getting advanced there has been introduction of new machineries all the
time. Due to introduction of this machineries the production of the Coca-Cola company has

increased tremendously then it was few years ago.


Coca-Cola has six factories in Britain which use the most state-of the-art drinks technology
to ensure top product quality and speedy delivery. Europe's largest soft drinks factory was
opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology
to produce cans of Coca-Cola faster than bullets from a machine gun

1.1.2.2 FINANCIAL REPORT

This company is financially very strong. It is due to the strong finances, the company is still
surviving the ups and down of the business world. The financial report of Coca Cola Company of
the year 2001 and 2000 along with the percentage change is as follows.

$.24 per share after income taxes related to an organizational Realignment.


$.19 per share after income taxes related to the Company's portion of charges recorded by the

investors of the company.


$.16 per share after income taxes related to the impairment of certain bottling, manufacturing

and intangible assets.


$.05 per share after income taxes related to the settlement terms of a discrimination lawsuit.
$.01 per share after income taxes related to incremental marketing expenses in Central
Europe.

These charges are partially offset by a gain of $.05 per share after income taxes related to the
merger of Coca-Cola Beverages plc and Hellenic Bottling Company S.A. and $.04 per share after
income taxes related to benefits from a tax rate reduction in Germany and from favorable tax
planning strategies.

1.1.2.3 DIVIDEND AND CASH INVESTMENT PLAN :


The Dividend and Cash Investment Plan permits shareowners of record to reinvest dividends
from Company stock in shares of The Coca-Cola Company. The Plan provides a convenient,
economical and systematic method of acquiring additional shares of our common stock. All
shareowners of record are eligible to participate.
Shareowners also may purchase Company stock through voluntary cash investments of up to
$125,000 per year. At year-end, 76 percent of the Company's shareowners of record were
participants in the Plan. In 2002, shareowners invested $36 million in dividends and $31 million
in cash in the Plan.

Company statistics:

The statistics of this company is impressive. Since it is operating through out the world that is
why the number of employees and the bottling equipments is highest among the other bottling
companies. There is a constant increase in every aspect when we compare the statistics of 2001
and the statistics of 2002. This is because; Coca Cola Company is increasing its volume day by

day. The expansion of this company, which shows the success of Coca Cola brands, results in the
percentage change in the statistics of the two years. The statistics is as follows.
EBITDA is the Earnings before interest, taxes, depreciation, and amortization, and other nonoperating items.
Net Debt is the Long-term debt plus current portion of long-term debt less cash and marketable
securities.
Equivalent Case or Unit Case is the physical case and fountain gallons converted to a standard
unit of measure defined as 24 eight-ounce servings or 192 ounces per equivalent case sold by
Coca-Cola Enterprises.

1.1.2.4 PRODUCTS:
There are different brands of the Coca Cola Company, which are currently in use through out the
world. This company not only deals in the carbonated drinks but also other drinks. While
launching its product, the marketing team considers the culture of the country.
Major brands of coca cola

Coke
Sprite
Fanta
Diet coke
Coke classic

The commitment of the company is to devote resources to water only in markets where it expects
profitable growth. This strategy has paid dividends. The company has successfully applied its
approach to brands in several key markets, including Ciel in Mexico, Mori No Mizudayori in
Japan, Bonaqua in Russia and Kinley in India. Backed by a strong network of bottling partners
throughout the United States, Dasani became the nation's fastest-growing water brand. In
Eurasia, the entire Turkuaz brand team worked together to launch Turkey's first purified water
brand. This year, Coca-Cola Company also successfully energized a major piece of its beverage
strategywater. By the end of 2001, its bottled water volume exceeded 570 million unit cases,
making it the second biggest contributor to the growth of the company after carbonated soft
drinks. Three of the water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100
million unit cases for the year.
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In 2001and 2002, the company has also made good progress in coffees and teas. Beverage
Partners Worldwide, the renewed and strengthened marketing partnership with Nestl S.A.,
began operations in 2001. This partnership combines Nestl's knowledge in life science, research
and development with the expertise of Coca Cola Company in brand building and distribution.
At the same time, the company grew Georgia coffee in Japan by 3 percent through awardwinning marketing in a category that was flat for the year. Also in Japanwhere The Coca-Cola
Company is the leader in the total tea category, the second-largest category in the non-alcoholic
ready-to-drink segmentit launched Marocha Green Tea. With sales of 46 million unit cases for
the year, Marocha Green Tea is the fastest-growing product in the fastestgrowing category: green
tea. The popularity of Marocha is also recognized by the industry with a leading trade journal
Naming Marocha the most popular new food and beverage product of the year.
Among the soft drinks Fanta and Sprite become successful along with the major brand Coca
Cola and Diet Coke. In key markets, the company has created new packaging sizesto satisfy
consumer demands. Increasingly, Mexican families have lunch together at home. The average
Mexican household drinks two-and-a-half liters or more of soft drinks during that break, while a
two-liter bottle was the largest available package. So the company introduced a convenient 2-
liter bottle to select regions, contributing to the sale of nearly 1.5 billion unit cases of Coca-Cola
in Mexico this year. This larger bottle will complete its nationwide rollout in 2002. In China,
Coca-Cola is an integral part of holiday celebrations and the family get-togethers that accompany
such events. Through an intense focus on Coca-Cola, innovation and new beverages, it has
achieved volume growth of 10 percent in 2001. In China, sales of Coca-Cola increased by 6
percent. In the United States, recognizing that consumers often enjoy their diet Coke with a slice
of lemon, the company "bottled" the concept. The resultdiet Coke with lemoncontributed to
volume growth of 4 percent for the number-one diet. Soft drink in North America: diet Coke.
The company increased its two largest bottle sizes during the 2001 holidays, and festival
packaging helped drive a 6 percent volume increase for Coca-Cola. The packaging innovations
do not just involve resizing. The company has also responded to consumers' changing fashion
styles with new bottles. With brands such as Minute Maid, Hi-C, Simply Orange and Disney
juices and juice drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in
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Africa. This year, the company re-launched its global sports-drink business, investing in new
products, packaging, positioning and marketing. The results speak for themselves: its global
sports drinks, led by Powerade and Aquarius, and grew by 13 percent in 2002, nearly double the
growth rate of the worldwide sports-drink category. Revitalized in the United States, the
company introduced Powerade in nearly every major Western European market, including Great
Britain, Germany and Spain, as well as in Mexico and Latin America. The company launched 27
products in 2001.
The commitment of the company to packaging innovation also resulted in new initiatives for our
fountain business, a channel through which many consumers enjoy Coca-Cola. In the United
States, the company developed Fountain, a total beverage dispensing system that is more
flexible and more reliable. Two years of research resulted in a dispensing system that provides
exceptional beverage quality, easy to upgrade technology, brand and graphic customization and
improved reliability.

1.1.2.5 EXPANDING TARGET MARKET


In last 2 years Coke has come back in aggressive manner.
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 Cokeis 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 Pakistani temperament is US not
ME
Pepsis Brand
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Pepsis brand is basically is basically ME branded. They use the temperament of ME. In
contrast to Coke they believe on individual struggle.

1.1.2.6 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
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
increase 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.

1.1.2.7 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 questions are as follows.
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 flavors. For example
Coke is increasing the number of flavors in Fanta, this is one of the product of coke. Through
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offering different flavors Coke can increase the Level of consumers and through this profits can
be gained.
How to take part in energetic festivals?
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 2002 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 who 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 tohave billions of friends around the world, and we
never forget it.

MARKET POSITIONING

Product Range
The total range of Coca Cola Company in Pakistan includes:

Coke.
Sprite
Fanta.
Diet Coke.

And company offers their products in different bottle sizes these includes:

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)
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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

PRICE STRATEGY

Trade Promotion
Coca Cola Company gives incentives to middle men or retailers in way a that 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
Sometimes Coca Cola Company change their product prices according to the season. Summer is
supposed to be a good season for beverage industry in Pakistan. 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 eye-catching
positions. Normally they keep their freezers near the entrance of the stores.
Sale Promotion

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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
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 Pakistan 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
Billboards and holdings

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.
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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.

EXPECTATIONS FOR THE COMING YEAR

Everything 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. 2.Workers should be the brand centric not the promotion
3. Centric.
4. 3. They should know how much to for the brand activities.
5. 4. They should also know that how much to do with the
6. Promotion activities for brand.
HOW COKE DETERMINE THE YEARLY BUDGET?
Coke determines its yearly budget by the:
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 r 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 gettinghigh profits. No organization wants to face Loss in
their business. To get profit is the first priority of the Coke.
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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

SALES PROMOTION ACTIVITIES

Coca-Cola Cricket
Cricket the most sought after; watched & played game in Pakistan .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 Pakistans National cricket
players. Coca-Cola realizing the fact that cricket is a very strong element by which it can reach it
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 CocaCola 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
Abrar-ul-haqs distinct style, lyrics & songs have made him an instant hit among the masses in
Pakistan. His enormous popularity in the country & abroad is supported by Coca-Colas
commitment towards providing healthy & fun-filled entertainment for the youth of Pakistan.
Coca-Cola brought Abrar to his fans through holding concerts & featuring Abrar 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 Abrar.
Coca-Cola Food Mela
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With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of
Karachi, 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 CocaCola 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 Abrar-ul-haq, had childrens parade & held the
Coca-Cola kite flying championship during the basant festival. Now where 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 & passer bys during Lahores hottest summer
season, Coca-Colas GORED 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 In June 2000, Coca-Cola created an experiential musical evening in
Lahore, 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 Lahores first shopping festival, a
resounding success with tempting discounts, live music, great prizes & fireworks. Liberty
marketing Gulberg 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. Coca-Cola Pet
Promotion In 1996, Coca-Cola launched 1.5 liter Pet contour bottle for the first time in Pakistan.
Targeting house wives & family home, Coca-Colas 1.5 liter Pet bottle, took the limelight &
gained momentum with a campaign promoting the unique packaging and its numerous consumer

18

benefits .A treat for the family, Coca-Colas PET was offered through a price off promotion
that said.Go out & get some
Coca-Cola Ramzan Campaign
A very special occasion for the people of Pakistan Ramzan saw another very special Coca-Colas
promotion, marketing the popular 1.5 liter PET bottle & the 1 liter bottle with a super price-off
promotion. The emphasis on enjoying Coca- Cola at Iftar with friends & family. Coca-Cola
Wonder of the World Promotion In July 2000, Coca-Cola set the stage of the grand UTC
promotion. Coca-Cola went ahead with the idea of giving consumer chances to win fabulous,
magical dream vacation to numerous wonder destination throughout the world on every
purchase of a 250 ml RGB bottle of Coca- Cola, Sprite, & Fanta. The promotion gave consumers
a chance to win free drink, a trip to PARIS, HOLLYWOOD, NEWYORK, SINGAPORE &
CAIRO along with airfare & four nights free stay in these dream lands. The promotion saw avid
consumer collecting Coca-Cola Crown caps & sparked a keen response from the public ,
rendering an outstanding testimonial campaign in the second phase, highlighting the winners
over whelmed in the magical delight of their favorite beverage Coca-Cola. Coca-Cola & Nokia
In August 2001, the new under-the-crown promotion Nikla Kiya?(What have u won) was
launched in collaboration with Chimera Nokia.The promotion gave consumer a chance to win
thousands of Coca-Cola branded Nokia 3310 cellular phones on every purchase of 750ml RGB
bottle of Coca-Cola ,Sprite, & Fanta.The other highlight of promotion was the Caught Red
Handed campaign. Branded Coca- Cola with caught red handed team in them went to Lahore
& Karachi for three days, with target that anyone being caught drinking Coca-Cola will be
awarded a nokia 3310 mobile phone & if someone is caught talking on a nokia mobile will win
free supply of Coca-Cola. Caught red handed become a huge success among the masses as it was
one to one interaction between the Coca-Cola brand & the consumers. This activity helped build
confidence and brand loyalty among core consumers.
Coca Cola TV Mazza
The coca cola new campaign is coca cola tv mazza, it is a utc scheme in which people are getting
television sets of different sizes. These days this scheme is very popular among the people. CocaCola & Mc Donalds Coca-Cola & key account of MC Donalds launched the we go together
joint promotion to reinstate amongst consumers a real sense of the affinity that, both shares

19

globally. The promotion kicked off with pos material (Danglers, Bunting etc) displayed at all MC
Donalds restaurants along with a special offer for coke & fries. Fanta & Sprite Launched
In November 2000moving on to the Sprite & Fanta brands, the consumers in Pakistan witnessed
a soft launch in essence. The Coca-Cola Company declared the new Non- Returnable bottles of
Sprite & Fanta as the New, On the Go Packs flaunting the innovative packaging convenience.
Fanta & Sprite are sure to enjoy considerable success in Pakistan.
Diet Coke
After the acquisition of the individual local franchise bottling facilities in 1996, the company has
successfully launched its first new product, diet coke, for the first time in almost 3 years. The
was linked with three fashion shows as Diet Coke is related to fashion & fitness, but the major
hit was thematic fashion shows in restaurants, which are the key accounts of the company as this
has been never done before in Pakistan.

1.1.2.8 SWOT ANALYSIS


Strengths:
Coca-Cola has been a complex part of American culture for over a century. The product's image
is loaded with over-romanticizing, and this is an image many people have taken deeply to heart.
The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely
recognizable branding is one of Coca- Cola's greatest strengths. Additionally, Coca-Cola's
bottling system is one of their greatest strengths. It allows them to conduct business on a global
scale while at the same time maintain a local approach. The bottling companies are locally
owned and operated by independent business people who are authorized to sell products of the
Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its
main source of revenue is the sale of concentrate to its bottlers.
A company like Coca-Cola has much internal and external strength, but when launching a
product of this sort, they begin to run into many internal and external weaknesses as well. As far
as internal strengths go, Coca-Cola itself is a strong company to say the least. Not only are they a
$23 billion company, but in 200 nations, Coke sells about 400 drink brands, including four of the
top five sellers right now. They own 36% of the largest Coke bottler in the world, Coca-Cola
Enterprises, which staffs facilities all over the world. Although Coke has never produced an
organic product, they do own Odwalla, which is a natural juice company. This product would not
20

be marketed as an Odwalla brand, but Odwalla's knowledge of natural juice making will be a
great strength for Coca-Cola. Organic products are on the rise, with 70% of Americans having
purchased something organic at least once. While organics are becoming more and more popular,
there still are not many well-known organic companies; therefore, Coca-Cola will not have much
competition. Perhaps one of their biggest strengths is the brand loyalty their customers have.
When this product islaunched, avid Coke drinkers will choose this organic fruit juice or soda
over any other competitor simply because it's a Coca-Cola product and they trust it.
Weaknesses:
Although domestic businesses as well as many international markets are thriving, Coca-Cola has
recently reported some "declines in unit case volumes in Indonesia and Thailand due to reduced
consumer purchasing power." According to an article in Fortune magazine, "In Japan, unit case
sales fell 3% in the second quarter because while Japan generates around 5% of worldwide
volume, it contributes three times as much to profits. Latin America, Southeast Asia, and Japan
account for about 35% of Coke's volume and none of these markets are performing to
expectation.
Coca-Cola on the other side has effects on the teeth's which is an issue for health care. It also has
got sugar by which continuous drinking of Coca-Cola may cause health problems. Being
addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an
effect on your body after few years.
Opportunities:
Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's
brand name is known well throughout 94% of the world today. Packaging changes have also
affected sales and industry positioning, but in general, the public has tended not to be affected by
new products. Coca-Cola's bottling system also allows the company to take advantage of infinite
growth opportunities around the world. This strategy gives Coke the opportunity to service a
large geographic, diverse, area.
Threats:
Currently, the threat of new viable competitors in the carbonated soft drink industry is not very
substantial.
The threat of substitutes, however, is a very real threat.

21

The soft drink industry is very strong, but consumers are not necessarily married to it. Possible
substitutes that continuously put pressure on both Pepsi and Coke include tea, coffee, juices,
milk, and hot chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire
beverage market, the changing health consciousness of the market could have a serious affect. Of
course, both Coke and Pepsi have already diversified into these markets, allowing them to have
further significant market shares and offset any losses incurred due to fluctuations in the market.
Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi
and Coke has produced a very slow moving industry in which management must continuously
respond to the changing attitudes and demands of their consumers or face losing market share to
the competition. Furthermore, consumers can easily switch to other beverages with little cost or
consequence

1.2 MARKETING MIX IN COCA COLA


Marketing mix is the pack of four sets of variables namely, product variables, price variables,
promotion variables and place variables.
The Coca Cola, marketing mix is decided by the director and the chief marketing manager. They
decide the marketing mix relating to the company by consulting records of the previous year
with the assistance of senior manager marketing. They make strong strategic and policies of the
product, price, promotion, physical distribution to promote sale and to earn good profit. These
policies are sent to manager of Coca Cola for implementation.
Company passes this information to concerned officer for efficient implementation of policies.
Manager acts as a middleman between various departments. The Director and Chief Marketing
Manager reviews the policies relating to marketing mix each year depending upon the market
condition and previous year records. A company's marketing efforts starts and ends with the
consumer. Before taking any decision regarding the marketing mix customer demand, needs and
desires are first consider and preference is given to it.

1.2.1 PRODUCT MIX IN COCA COLA


A companys product defines its business. It is the product around which all the marketing &
marketing efforts of the company revolves. Without a product there is nothing to price, nothing
to promote and nothing to distribute. So every aspect of enterprise must fit in product.
22

A Product can be defined as a collection of physical, psychological, service and symbolic


attribute that collectively yield satisfaction or benefits to buyer or user.
Meaning of Product Mix
Product Mix is a composite of total assortment offered b an enterprise for sale over a period a
time. The product mix has three dimensions which call for specific managerial attention in any
sound marketing management.
These dimensions are:
Width
The width of the product mix is measured by the number of product lines found within the
company.
Depth
The Depth of product mix is measured by the variety of sizes, colors and models offered within
each product line.
Consistency
The consistency of the product mix refers to how closely relate the various products lines are in
end use, production requirement, and distribution channels or in some other way.
All the dimensions of the product mix have a market rationale. Through increasing the width of
the product mix, the company hopes to capitalize on its good reputation and skill is present
markets. Through increasing the depth of its product mix, the company hopes to entice the
patronage of buyers of widely differing tastes and needs. Through increasing the consistency of
its product mix, the company hopes to acquire an unparalleled reputation in a particular area of
endeavour.
Products are the sum total of physical and psychological satisfaction it provides to the buyers.
The product mix is the composite of product offered for sale by the firm over a period of time.
Coca Cola has a wide range of products which it provides to it consumers.
Figure 1.2: The Product Mix Variables

Product
Line
Product
Range

Product
Design

Product
Labelin
g

Product
Quality
Product
Packag
e

23

Product
Brandin
g

Product
Service
s

The variables of product mix are:PRODUCT RANGE


The products of the company are Fully Floating , Fixed , Stub , Semi Floating

and Half

etc. It manufactures the products under latest technology supervised by


highly technical people, authenticated with global presence in terms of quality.
PRODUCT QUALITY
Coca Cola had laid quality assurance parameters in various stages of production line right from
the stage of raw material procurement to the point of dispatches of finished products.
The quality policy of Coca Cola is to satisfy customers by providing timely

delivery of quality

products and company is committed to continually improve the effectiveness of the quality
management system.
Coca Cola manufacture produces only best quality products. This can only be maintained by
proper research and testing. All the products are prepared according to the needs of the
consumer. Proper standards are set for every product and after manufacturing them they are
tested that they are according to the standards or not if deviations occurred they are removed.
PRODUCT DESIGN
Coca Cola design its products in such a way so as to satisfy the customer's needs and provide
them those products which are actually required to them. In many cases it makes the products on
the bases of sketch (diagrams) of the product given to them by the customer or a firm. There is a
research laboratory where tests are conducted continuously in order to make products even
better.
PRODUCT PACKING
The products are packed in such a way that they remain clean, protected against the physical
losses or manhandling loss, easy storage and can be easily identified. The various materials used
for packing the products by Coca Cola are wooden cases, iron strip, thermocol paper, paper
cutting, polythene bags, plastic strips, and iron cases.
PRODUCT LABELING
The products are labeled properly. The label describes the name and the trademark of the
24

company with an ISI mark over it. It also shows the information about the product, the way to
use the product, how it is made, etc.
PRODUCT BRANDING
A brand shows the image, quality, value and personality of the product. Coca Cola sells almost
all its products under the name of "Coca Cola". Coca Cola is quite popular in the market for its
products.

1.2.2 PRICE MIX IN COCA COLA


The uniqueness of price in the marketing mix is that it is the only element that generations
revenue; all other elements of the marketing mix inner costs. So setting the right price for a
product can be key to success or failure. If the product is not properly priced, all the efforts on
producing, promoting and distributing the product will prove fatal. A products price must reflect
the quality/value the consumer perceives in the product.
Price is the amount for which a product, service or an idea is exchanged or offered for sale
regardless of its worth or value to the potential purchases.
In order to determine the price of the product marketing manager must keep in mind the factors
like nature of the product, cost of manufacturing marketing nature of market, channels of
distribution and pricing policies & strategies to the pricing policies, margin terms of credit, term
of delivery & commission.
While determining the price of the product, company first considers the impact of such prices
over the consumer segments. Proper survey in the market is made so that the price cannot be
under or over estimated by the company.
The variables of the price mix in the company are:
PRICING POLICY AND STRATEGY
Price of the product plays an important role in the market because it has a direct bearing over the
total profits of the enterprise. The price of the product is fixed in such a way that it covers the
cost of production and it should be easily affordable to the customers. The management of Coca
Cola keeps the following points in mind while deciding the price of the product.
These are:

Labour cost
25

Cost of production

Market price of competitor's product

Demand for the product

Government regulations etc.

TERMS OF CREDIT
Coca Cola offers the following types of discount to its customers. These are :

CASH DISCOUNT: Coca Cola offers cash discount of about 2% to the dealers if the
payment is received within 7 days of billing and a credit period of about 30 to 40 days is
allowed. The payment is done with the help of cash or by a bank draft. Other discounts
are also given by the company depending upon the marketing conditions.

TERMS OF DELIVERY: The goods which- are ordered by the distributors,


dealers and other companies are delivered within 30 days from the date of confirmed
order.

TARGET DISCOUNT AND INCENTIVE: The firm offers discount and other
incentives, usually in the form of materialistic gifts.

MARGINS: It means the difference between the price charged to the customer
and the cost of the product. The margins are kept secret by the management of the Coca
Cola It depends upon the nature of products. In case the products, need high maintenance
cost and after sale services then it needs higher margin.

The products of Coca Cola are also exported to many countries. So, the company has also a
specific credit policy for foreign market i.e. they follow 45 days credit to importers. On the
receipt of confirm order following formalities are to be observed.
(i)

Compiling the Documents


a.

G.T.R. (Goods Transport Receipt)

b.

Invoice Delivery Challan

c.

Certificate of Origin

d.

Export Promotion Copy

e.

Letter of Credit

f.

G.R.I.
26

(ii)

These documents along with forwarding memo has to be sent to concerned bank of
the party.

QUANTITY DISCOUNT
The firm offers price reduction to buyers who buy large quantity of product from them.

1.2.3 PLACE MIX IN COCA COLA


Place mix constitutes the third important element of marketing. Place mix stands for selecting
channels & out lets through which products reach into the hands of customers and arranging their
physical movement to different market segment. It comprises the set of tasks involved in
planning and implementing the physical flow of materials final goods from the points or origin to
points of use or consumption to needs of customers at a profit. It involves the management of the
channels by which ownership of products is transferred from producer to customer.
It calls for the matching arrangement for the smooth flow of goods services from producers to
consumers. The basic object of the manufacturer in selecting & developing distribution channels
in conjunction with other elements of the marketing mix is to maximum the degree of attainment
of company goals including profit, stability & long-term growth. It should be emphasized that
marketing channel polices are an integral part of the marketing mix and must be considered on
the basses of other marketing decisions.
Place mix is concerned with :
Creation of place utility
Creation of time utility
Creation of Position utility
In other words, it signifies two things name-Physical Distribution & Channels of Distribution.
Physical Distribution : It means how product is distributed to customers. It involves means &
ways of distribution.
Channels of Distribution : It considers the channels, medium through which product reaches
from producer to customer.
Place or distribution mix stands for the marketing arrangements for the smooth flow of goods
and services from the producers to the consumers.
The basic variables are:
27

TRANSPORTATION
The trucks of the company are used for distribution of goods in the market. For local area, the
company provide the goods at free of cost and where are other competitors at that place also the
company provides goods at free of cost. But in other parts outside Jalandhar, the dealers and
distributors or customers of the company have to bear the cost of transportation.The company
also use the cargo service to transport the goods from one place to another in local as well as
export market for exports they use air as well as sea transport depending upon the requirements
of buyers.
ORDER PROCESSING
Coca Cola has many branches in different parts of the country and abroad where customer's
places their order. Then the sales executive of that branch send orders for the products to the
head office. After manufacturing the required products, it sends to the customer who needs it.
INVENTORY LEVEL
The Company tries to keep the inventory level in proper quantity, so as to balance the ordering
cost and carrying cost. The raw-material required for the production is easily available in the
market, so the unnecessary stock is not stored for the longer period. The company first estimates
the required raw-material according to the needs and then it places the order for the whole
quantity of the raw-material at a time.

28

WAREHOUSING
Coca Cola has a proper chain of warehousing for the storage of finished goods or products.
Generally the need does not arise, as finished goods are immediately supplied to the customer at
the right time.

1.2.4 PROMOTION MIX IN COCA COLA


Promotion is a spark plug in the marketing mix and nothing until somebody promotes something.
Sales do not take place automatically without promotion even through the product of a company
is unique on superb.
So, promotion is the process of marketing communication to inform, persuade, remind and
influence, persuade, remind and influence consumers or users in favor of manufacturers product
or service. In economic terms, that means changing a firms demand curves-shifting it to the
right & changing its shape to make demand inelastic when price increase and elastic when prices
decrease.
It stands for activities, which communicate the merits of the products and persuade target
consumers to buy it. Promotional activities always attempt to affect knowledge, attributes
reference and behaviors of customers.
Promotion Mix is the communication mix, which deals with the personal and impersonal
persuasive communication about the product or service of the manufacturer, Personal
communications relate to face-to-face meeting between sale force of the company and customer.
On the other hand, impersonal communication includes advertising sales promotion and public
relations.
When deciding on the promotion mix, management should consider the nature of the market
including the type of customer, nature of the product including unit value, the stage of the
products life cycle and the funds available for promotion.
In Coca Cola the marketing department regularly makes the efforts to aware the customers
regarding its products. The company does this by the efficient promotion activities.
PERSONAL SELLING
Personal selling has an important role in proper communication between the firm and the
customers. Coca Cola sells its products through distributors and dealers as well as directly to its
29

customers. It helps in developing good relation between the customer and the firm.
ADVERTISING
Advertising is very popular method of impersonal communication using a variety of media
vehicles. It is done through newspapers, magazines , exhibition, wall printing, etc. the company
has a prestigious image between his customers.
SALES PROMOTION
It is a function in the marketing of providing endorsement to buyers or providing them special
offers. These offers are offered to the customers for a limited period only and these are offered at
the time and place when the purchasing decision is made by the customer. Coca Cola also
provides various incentives to its customers at different occasions. Many special offers and free
gifts are also provided to the dealers and distributors for this purpose like pen, purses,diaries, key
chains, bags and wall and table calendars.
PUBLICITY
Coca Cola does publicity from time to time to give information to the public about its products,
policies, etc. It provides the material for publicity in the form of new releases, photographs, press
conference, trade fairs and exhibitions.
PUBLIC RELATIONS
Public relations involve installation of mutual understanding between a firm and all who are
likely to come in contact with it. These sections of society are customers, shareholders,
administrative staff and general public. It attempts to portray the image and the personality of the
organization.
The marketing-mix is a dynamic concept. Coca Cola changes it according to the requirement of
the customers and according to changes in the environmental factors. It ultimately helps in
maintenance of competition of Coca Cola with its competitors.

30

CHAPTER-2

REVIEW OF LITERATURE

31

REVIEW OF LITERATURE
Various studies have been conducted on the telecom sector that contributes a lot towards the
society. Out of them, some of the reviews have been discussed in brief as follows:
Levy(2009) concluded that the case of Coca-Cola is particularly interesting because during the
70-year period there were substantial changes in the soft drink industry as well as two World
Wars, the Great Depression, and numerous regulatory interventions and lawsuits, which led to
substantial changes in the Coca-Cola market conditions. The nickel price of Coke, nevertheless,
remained unchanged. We find that this unusual rigidity is best explained by (1) a contract
between the Company and its parent bottlers that encouraged retail price maintenance, (2) a
single-coin vending machine technology, which limited the Companys price adjustment options
due to limited availability and unreliability of the existing flexible price adjustment technologies.
Estrada (2010) studied the non-technical introduction to equity analysis and valuation. It
portrays the situation of an analyst who, at the beginning of 1997, has to report whether CocaCola stock is undervalued or overvalued, and make a buy (or do-not-buy) recommendation. The
tools of analysis introduced and briefly discussed in the case are the dividend-discount model
and the CAPM, as well as some important magnitudes related to stock pricing. The case aims to
introduce the issue of stock pricing to an audience without a Finance background. To that
purpose, it is useful to introduce and discuss many terms relevant for stock valuation, such as
EPS, dividends and dividend yields, P/E ratios, growth rates, and discount rates.
Bruner (2011) examined the implications of the merger for the rivalry between Coca-Cola Co.
and PepsiCo, and for value creation by each firm. Because the merger would allow PepsiCo to
control Gatorade, which held an 83% share in the sports drink market, PepsiCo would further
strengthen its already-wide lead over Coca-Cola Co.
Fernandez (20012) analyzed in depth the valuations of Kellogg's and Coca-Cola performed by
Damodaran and the method proposed by Interbrand. Damodaran valued the brand Coca-Cola in
24,6 billion dollars in 1993 and in 102,6 billion dollars in 1998. In recent years, a lot has been
spoken about the value of companies' intellectual capital. However, almost all of the studies on
32

the subject are highly descriptive and a long way from obtaining a quantitative valuation. It is by
no means clear what the company's intellectual capital is, and even less so if we intend to value
the company's brand and intellectual capital separately.
Dube (2013) found that an unusual feature of soft drink demand is that, at the individual
purchase level, households regularly select a variety of soft drink products. Specifically, on a
given trip households may select multiple soft drink products and multiple units of each. A
concern is that using a standard discrete choice model that assumes single unit purchases may
understate the price elasticity of demand. To model the sophisticated choice behavior generating
this multiple discreteness.
Clarke (2013) led a corporate team that engineered a radical transformation of the forecasting
process. The team took his organization from an unstructured, decentralized process to a
disciplined internal collaboration of over 2,000 forecasters in a highly volatile promotional
environment. Here he describes the lessons learned in managing the transformation.
Zhang(2014) concluded that

there has been an increasing international consensus that

conglomerate mergers rarely pose anticompetitive effects and recent E.U. cases have required the
European Commission to satisfy a high burden of proof in cases of portfolio effects.
Additionally, this paper examines the problems of using the AML to protect domestic small- and
medium-sized firms. Finally, the paper discusses the enforcement challenges to MOFCOM and
the need for China to introduce more checks and balances in the merger control regime.
Sodhi (2014) found in his study that the factors that best model strategic performance are
different from those that best model operational performance. All companies are in Korea and the
retailers include international companies like Carrefour, Tesco, and Wal-Mart while suppliers
include Coca-Cola, Kimberley-Clark and Nestl
Giovanis (2014) examined two stocks of Athens Exchange Stock Market, that of Coca-Cola and
'Compucon'. We analyze the arbitrage pricing theory (APT) model and the Capital Asset Pricing
Model (CAPM) and we compare the performance between them. Then we develop a neural
33

network model in Synapse Software with the particle swarm optimization algorithm and show
the flexibility of hybrid models and the Synapse software, as the superiority in forecasting
performance, in relation to the traditional econometric methodology , like Ordinary least square
and ARCH-GARCH estimations.

34

CHAPTER-3
NEED, SCOPE AND OBJECTIVES OF THE STUDY

35

3.1 NEED OF THE STUDY


Coke is one of most consumed cold drink. They spend billions of dollars on their advertisement,
promotions and recreational campaign. Coca-Cola has always had a close consumer and supplier
relationship with its customers. Its entertaining and colorful advertisements have always and
will always rock the media.
Indian rock stars, sportsmen and actors have played a very vital role in making Coca-Cola such a
popular beverage.
So in order to make a analysis of the marketing strategy and factors with affects the marketing
strategy of Coca Cola company, this study is being undertaken.
3.2 SCOPE
The present study is confined to Jalandhar city only and it considers analysis done on Coca Cola
Company and various factors associated with it.
3.3 OBJECTIVES OF RESEARCH STUDY

To make the marketing analysis of Coca Cola.

To study the market position of Coca Cola brand in the market and various factors associated
with it.

To study the consumer satisfaction and their buying behavior towards Coca Cola brand.

To study the various promotional efforts made by Coca Cola company.

36

CHAPTER-4
RESEARCH METHODOLOGY

37

RESEARCH METHODOLOGY
Research is a systematic design, collection, analysis and reporting of data and finding relevant
solution to a specific situation or problem.
Research methodology is a way to systematically solve the research problem. It includes the
various and techniques for conducting a research. These are as follows:
4.1 RESEARCH PLAN
A research design is a framework for conducting the research project. It details the procedures
necessary for obtaining the information needed to structure and/or solve the research
problems.The research was descriptive in nature as it was based on marketing analysis of Coca
Cola.
4.2 SAMPLING DESIGN
Universe: Respondents of the survey were the individuals belonging to Jalandhar City.
Sample Unit:

Individual respondent in following category: Business Men, Professionals,

students, self-employed and service class people.


Sample Size: It was composed of 50 respondents from Jalandhar city.
Sampling Technique: Convenient Sampling technique was used for the study.
4.3 SOURCES OF DATA COLLECTION
1. Primary data source: The method of collection of primary data was direct personal interview
through a structured questionnaire.
2. Secondary Data Source: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news papers, magazines,
management books, preserved information in the companys database and website of the
company.
4.4 TOOLS OF PRESENTATION
Tables and Figures are used to present the data.

38

4.5 TOOLS OF ANALYSIS


The analysis was done by using percentages.
4.6 LIMITATIONS OF THE STUDY:
Every research work suffers from some limitations; similarly this research also has some
limitations. The limitations of the research project are as follows:

The biggest limitation was time. Because of limited time the research could not be carried out
thoroughly.

The internet information can be irrelevant.

Many other factors are responsible for better analysis if product in the market is not taken
into consideration.

The research has been limited to Jalandhar only.

Lack of availability of information full information.

39

CHAPTER-5
DATA ANALYSIS AND INTERPRETATION

40

DATA ANALYSIS AND INTERPRETATION


Q1. Which cold drink you enjoy the most?
Table 5.1: Response towards Enjoyment of Product
Particulars
Pepsi
Coca cola
7up
Limca
Others
Total

No. of Respondents
12
14
04
05
15
50

Percentage
24%
28%
8%
10%
30%
100%

Figure 5.1: Response towards Enjoyment of Product

pepsi
24%

others
30%
limca
10%

coke
28%

7up
8%

Interpretation:
From the above graph, it is clear that most of the respondents prefer to buy coke 28% followed
by Pepsi with 24% respondents prefer to buy.

41

Q2. . Which of the following factors influences you while purchasing coke?
Table 5.2 Response Towards Factors Influencing While Purchasing Coke
Particulars
Taste
Availability
Advertisement
Price
Total

No. of Respondents
20
11
10
09
50

Percentage
40%
22%
20%
18%
100%

Figure 5.2 Response Towards Factors influencing while purchasing coke

Price
18%
Advertisement
20%

Taste
40%
Availability
22%

Interpretation:
It is understood from the graph and the table that the respondents are more influenced by the
taste of the cold drink. About 40% respondents are influenced by taste of the cold drink.

42

Q3. Which package size you prefer the most?


Table 5.3: Response towards Preference of Package Size
Particulars
200ml
300ml
500ml
2ltr.
Total

No. of Respondents
20
12
10
08
50

Percentage
40%
24%
20%
16%
100%

Figure 5.3: Response towards Preference of Package Size

500ml
20%

2ltr.
16%

200ml
40%

Interpretation:
From the above graph, it is clear that 40% respondents prefer to buy 200ml package of coca cola
followed by

43

Q4. What is the level of consumption?


Table 5.4 Level of Consumption
Particulars
1 per day
Once a week
More than twice a week
Others
Total

No. of Respondents
02
16
08
24
50

Percentage
04%
32%
16%
28%
100%

Figure 5.4 Responses towards Trying Coca Cola

1 per day
4%
others
48%

once a week
32%

more than twice a week


16%

Interpretation:
From the Table and graph, the majority of the respondents said that they use to try coke once in a
week and 48% respondents are consuming it occasionally.

44

Q 5: Which promotional scheme would you say is more popular among the public?
Table 5.5: Popularity of Promotional Schemes
Particulars
Advertisements
Banners
Pamphlets
sponsorship
Others
Total

No. of Respondents
18
12
04
06
10
50

Percentage
36%
24%
8%
12%
20%
100%

Figure 5.5: Popularity of Promotional Schemes

others
20%

adevertisement
36%

sponsorship
12%
pamphlets
8%

banners
24%

Interpretation:
From the above graph and table, it is find out that majority of the respondents are influence from
the advertisements, influencing 36% of the respondents.

45

Q6: How you think the sale of coke can improve?


Table 5.6: Response towards Increasing Sale of Coke
Particulars
Lowering price
with passage of time
With the help of celebrities
offers
Total

No. of Respondents
16
08
14
12
50

Percentage
32%
16%
28%
24%
100%

Figure 5.6: Response towards Increasing Sale of Coke


of time
lowering
prices
with the help
offers
of celebritieswith apssage
16%
32%
28%
24%

Interpretation:
From the above graph it is clear that the sale of the coke can be increased by lowering prices in
the opinion of 32%of the respondents.

46

Q7: What are the reasons for taking coca cola?


Table 5.7: Reasons for Taking Coca Cola
Particulars
Refreshment
Thirst quenching
others
Total

No. of Respondents
25
12
13
50

Percentage
50%
24%
26%
100%

Figure 5.7: Reasons for Taking Coca Cola

Others
26%

Refreshment
50%

Thirst quenching
24%

Interpretation:
From the above graph and table, 50% of the respondents buy Coca Cola for refreshment
purposes followed by 26% respondents for other purposes like parties, style etc.

47

Q8: What is the satisfaction level about the features of a Coca Cola?
Table 5.8: Satisfaction Level about Features of Coca Cola
Response
Parameters

Highly
satisfied
4%
4%
4%
4%

Taste
Availability
Quality
price

satisfied
42%
50%
50%
44%

neutral

dissatisfie

Highly

Total

34%
24%
24%
26%

d
8%
4%
8%
6%

dissatisfied
12%
18%
14%
20%

100%
100%
100%
100%

Figure 5.8: Satisfaction Level about Features of Coca Cola


60
50
40
30

highly satisfied

satisfied

neutral

dissatisfied

highly dissatisfied

20
10
0
taste

availability

quality

price

Interpretation:
From the above scale it is clear that 42% of the respondents are satisfied with the taste of coca
cola, 50% of the respondents are satisfied with the availability of the coca cola in the market.
50% of the respondents are satisfied with the quality of coca cola and 44% of the respondents are
satisfied with the price of coca cola.

48

CHAPTER-6
FINDINGS OF THE STUDY

49

FINDINGS OF THE STUDY


Study of the research problem results in some findings out of the study. This research results in
the following findings:

Majority of the consumers prefers coke that is 28%.

Most of the consumers i.e. 40% of the total respondents consider taste as a major influence
whole purchasing soft drinks.

40% of respondents prefer to buy 200ml coke bottle for consumption.

Only 4% of the respondents consumes on per day basis, while majority of them consumes on
other occasions.

Among the respondents advertisement is the most popular promotional strategy adopted by
any company.

It is being found that the sales of the coca cola can be increased by lowering the prices.

50% of respondents consume coca cola for refreshment purposes.

42% of the respondents are satisfied with the taste of coca cola, 50% of the respondents are
satisfied with the availability of the coca cola in the market. 50% of the respondents are
satisfied with the quality of coca cola and 44% of the respondents are satisfied with the price
of coca cola

50

CHAPTER-7
CONCLUSION AND RECOMMENDATIONS

51

7.1 CONCLUSION

It was observed that Coca-Cola has been perceived quite positively as it has been projected.
People are aware of the Brand & Awareness of Coca-Cola is quite high in the market. When a
product is launched, avid Coke drinkers choose this soda over any other competitor simply
because it's a Coca-Cola product and they trust it.

Although Coke has been into controversies, people still prefer to stay loyal to the Brand with
Coca-Cola being termed as a more popular brand than Pepsi.

Coca-Cola products would appear, on the shelf, to have the most expensive range of soft
drinks common to supermarkets, at almost double the cost of no name brands. This can be for
several reasons apart from just to cover the extra costs of promotions, for which no name
brands do without. When people buy Coca-Cola they are not just buying the beverage but
also the image that goes with it, therefore to have the price higher reiterates the fact that the
product is of a better quality than the rest and that the consumer is not cheap.

In supermarkets and convenience stores Coca-Cola has their own fridge which contains only
their products.

There is little personal selling, but that is made up for in public relations and corporate
image. Coca-Cola sponsors a lot of events including sports and recreational activities.

52

7.2 RECOMMENDATIONS
In the report we have seen the graph of order booking targets and sales turnover. In the graph of
order booking we have seen that the order for our product is increasing year. It means that with
the increase of order to target. We have efficiency of the organisation; we have to improve on
certain points:

Cost efficiency:

To get the achievement of cost efficiency we have to keep certain points in our mind they are
resale of scraps, inventory management, and work distribution.

Profit generation:

In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey
for the company. The company should try to work on export. They should lay more emphasis on
export.

Improving technology:

There is no doubt that the product of company is not good. But from time to time the regular
improvement of the technology. It improves the quality of the product as well as save the time.

Becoming a global player:

With the last dealings we can conclude that the company had satisfy there maximum customers.
After those dealings the company should try to get a good name in India as well as in
international market.

53

REFERENCES

54

REFERENCES

Bruner (2011). The implications of the merger for the rivalry between Coca-Cola Co. and
PepsiCo. Retrieved on February 7, 2011 from http://papers.ssrn.com/sol3/papers.cfm?
abstract_id=278089

Clarke (2013). Radical transformation of the forecasting process. Retrived on feburary 7,


2011 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=987895

Dube (2013). Unusual feature of soft drink demand. Retrived on feburary 6, 2011 from
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=727203

Estrada (2010). Non-technical introduction to equity analysis and valuation. Retrieved on

February 2, 2011 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=671804


Fernandez (2012) Repairing the Coke Machine. Business Week, Mar 19, 2001. Retrieved

on feb.8, 2011 from http://www.businessweek.com.


Giovanis (2014) Coke Adds Life to Sales, Profit After Losing Fizz in Late 90s; Outlook for
drink company brightens with restructuring and U.S. economic recovery., The Los Angeles
Times, feb. 15, 2011 Company Profiles of Coca Cola. Dow Jones Interactive online

database. Retrieved Jan 22, 2011 from www.library.csun.edu/databases


Levy (2009). Substantial changes in the soft drink industry. Retrived on feburary 8, 2011
from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=886316

PepsiCo Inc. Gains in

Soda Market as Coca-Colas Share and Sales Slip., Wall Street Journal, New York. Retrieved

on Mar 1, 2009.
Sodhi (2014) Introduction to coca cola. Retrived on January 22, 2011 from

www.google/cocacola/lifetimevalue/in.
Zhang(2014) Behind the Coke Boards Refusal to Let CEO Daft Buy Quaker Oats., Wall
Street Journal, Feb 2, 2011 Coca Cola To Open 50,000 Outlets In Rural Push In India., Asia
Pulse, Mumbai, Retrieved on Jan 24, 2011 from www.library.csun.edu/databases /ASAP
business/ Keyword: Coca-Cola, India.

55

ANNEXURES

56

QUESTIONNAIRE
Name: __________________________
Age: ___________________________
Gender: _________________________
1. Which cold drink you like to consume?
a) Pepsi

c) Coca Cola

b) Limca

d) 7up

e) Others
2. What is the level of consumption?
a) 1 per day

c) once a week

b) More than twice a week

d) others

3. Which package size you prefer the most?


a) 200ml

c) 500ml

b) 300ml

d) 2lts

4. Which of the following factors influences you while purchasing coke?


a) Taste

c) Advertisements

b) Availability

d) price

5. Which promotional scheme would you say is more popular among the public?
a) Pamphlets

d) banners

b) Sponsorship

e) advertisements

f) Other
6. How you think the sale of coke can improve?
a) Lowering price

c) with passage of time

b) With the help of celebrities

d) offers
57

7. What are the reasons for taking coca cola?


a) Refreshment

b) Thirst quenching

c) others

8. What is the satisfaction level about the features of a Coca Cola?


Response
Parameters
Taste
Availability
Quality
price

Highly satisfied

satisfied

neutral

58

dissatisfied

Highly dissatisfied

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