final cold drinks

Upload: raghav-gupta

Post on 07-Apr-2018

232 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/6/2019 Final Cold Drinks

    1/53

  • 8/6/2019 Final Cold Drinks

    2/53

    50

    INTRODUCTION

    Soft drinks have been described as making the most

    extensive dietary impact of foreign corporations in thedeveloped world. They are usually priced just within the reach of

    the poorest in these countries and may represent, via their glossily

    advertised images, symbols of an enviable Western lifestyle.

    Because of the relative poverty of many people in the Third

    World, staple foods may be neglected in preference to soft drinks. In

    1969 it was reported that babies in Zambia had become malnourished

    because their mothers fed them coke and Fanta, believing it was the

    best thing they could give their children. Around the time 54% of the

    seriously malnourished children admitted to the childrens hospital at

    Ndola had Fantababy written on their progress charts. The Zambian

    government subsequently banned Fanta advertisements because of

    their influence on the poor.

    A study at the Nutrition Institute in Rio de Janeiro found high

    levels of consumption of Coke, Fanta and Pepsi in its survey of school

    children between 6-14 years old. All the children showed signs of

    vitamin deficiency whilst the poorest of them also showed

    protein/calorie malnutrition.

    A Mexican priest wrote, in 1974, that Mexican villagers believed

    soft drinks should be consumed every day, leading to lower

    consumption of natural products such as fruit. Some families were

    even seen to be selling their natural products in order to buy soft

    drinks.

  • 8/6/2019 Final Cold Drinks

    3/53

  • 8/6/2019 Final Cold Drinks

    4/53

    50

    neighboring countries such as Pakistan, Sri Lanka, Thailand, Indonesia

    and the Philippines.

    The industry has sought a rationalization of excise duty to

    enable it to exploit its potential. Its main grouse is that the Budget

    promise made four years ago on doing away with special excise duty

    (SED) on all mass-consumption items was implemented, with the

    exclusion of aerated soft drinks.

    It points out that when cosmetics, refrigerators and

    videocassettes were granted waiver of SED, aerated beverages, which

    accounted for 90 per cent consumption by the middle and lower

    income segments, were not shown the same favour.

    To validate its observations, the industry points out that aerated

    beverage was capital and employment-intensive and supported

    various ancillary offshoots such as manufacturing and service units

    PET bottles, crates and visi-coolers, retail, etc. Elaborating further, the

    industry says that extra production of every one million casesgenerates additional employment for 1,300 people in the economy.

    Against this background it has sought removal of SED. The industry

    currently employs directly or indirectly 1.5 lakh people, it claims.

    Further, it points out high excise duty results in massive

    production of spurious products and passes-offs manufactured in

    unlicensed facilities and inflicts loss of revenue to the exchequer.

    Global soft drinking growing by 5% year Soft drinks consumption

    worldwide is growing by around 5% a year, according to global Soft

    Drinks 2002; total volume reached 412,000 million liters in 2001,

    equivalent to 67.5 liters per person.

  • 8/6/2019 Final Cold Drinks

    5/53

    50

    North America is the largest soft drinks market with a 27% volume

    share in 2001.

    Carbonates are the biggest soft drinks sector with 45% of global

    volume.

    Bottled water is the highest growth sector, rising by 10% in 2001

    and accounting for 53% of total soft drinks growth from 1996 to

    2001.

    The five fastest growing countries between 1996 and 2001 were

    from Asia, East Europe and the Middle East.

    It is important to note the advance of Asia, East Europe and

    other developing markets, commented Zenith Research Director Gary

    Roethenbaugh. Thanks to highly populous and rapidly emerging

    markets such as China and India, consumption in Asia is projected to

    overtake that of North America in 2006.

    The five fastest growing countries between 2001 and 2006 are all

    expected to come from Asia.

    Pakistan is predicted to have the highest percentage growth rate of

    all.

    India is expected to make sizeable volume gains, as affluence

    spreads to more of its huge population.

    Indonesia, China and Vietnam complete the top five for future

    growth.

  • 8/6/2019 Final Cold Drinks

    6/53

    50

    We can anticipate that the overall market should bit 523,000

    million liters in 2006. A continuing 5% growth rate compares favorable

    with at best 1% for hot drinks, 2% for milk and 3% for alcohol.

    Economic obstacles and climate fluctuations will, of course, presentnumerous challenges, but the outlook for global soft drinks is as strong

    today as it has ever been,

    Global soft drinks growth, 1996-2001

    M. East 60

    E. Europe 49

    Asia-Aus 48L. America 32

    Africa 29

    W. Europe 19

    N. America 15

    Average 28

  • 8/6/2019 Final Cold Drinks

    7/53

    50

    EVOLUTION OF SOFT DRINKS

    The history of America and Soft Drinks go Hand in Hand

    A uniquely American industry, the manufacturing of soft drinks

    began in the 1830s. However, the evolution of soft drinks took place

    over a much longer time period. The forerunners of soft drinks began

    more than 2,000 years ago when Hippocrates, the Father of Medicine,

    first suspected that mineral waters could be beneficial to out well-

    being. But Hippocrates did not envision drinking the effervescent

    mineral waters bubbling from the earths crust. Instead, the Greeks

    and Romans used them for bathing and relaxation. More than a

    thousand years passed before mineral waters made the transition from

    therapeutic bath to refreshing beverage.

    In America, the transition resulted from the discovery of the

    natural springs in New York. Many legends and myths developed

    about the earths mysterious waters, believed to be cures for

    everything from arthritis to indigestion. The claims attracted

    physicians and scientists who began studying the tiny bubbles fizzing

    from these waters.

  • 8/6/2019 Final Cold Drinks

    8/53

    50

    Scientists eventually proclaimed the air being released as gas

    carbonium simple carbon dioxide. Soon afterwards they perfected a

    way of producing artificially carbonated water in the laboratory. With

    that development, it was only a matter of time before soft drinks madeit into the hands of the America public.

    By the 1830s, both artificial and natural mineral waters were

    considered healthy and refreshing products in America. But

    pharmacists, believing they could improve upon their curative

    properties, experimented with a multitude of ingredients from birch

    bark to dandelions. And while no miracle cures developed, some very

    interesting flavors and tastes were discovered. Ginger ale, root beer,

    sarsaparilla, lemon and strawberry were among the most popular of

    the early flavors.

    The soft drink industry was a seasonal business in the early

    days, operating primarily during the summer months. Sales were

    limited by few outlets for the new carbonated beverages, and by the

    consumers restricted mobility.

    For many years, Americas pharmacists were the driving force

    behind the refinement of soft drinks and many of the flavors and

    combinations. Their association with chemistry and medicine made

    them ideally suited for this business, still part pharmacology and part

    refreshment.

    The local pharmacy was the center attraction in many American

    towns in the mid-1800s. It was customary to gather around the new

    soda foundations and enjoy ones favorite refreshment mixed on the

  • 8/6/2019 Final Cold Drinks

    9/53

    50

    spot. However, as the corner drugstore grew in popularity, the soft

    drink bottling industry was taking shape.

    Gradually, demand grew for soft drinks to be consumed in the

    home. Bottling the product proved difficult at first, since pressure from

    the carbon dioxide forced corks right out of the bottles. Clearly, if soft

    drinks were ever to be sold for consumption beyond the corner

    pharmacy, there would have to be a way to keep them corked.

    Inventors worked for years to develop a solution, patenting some 1,500

    different corks, caps and lids for soft drinks bottles.

    Then, in 1892, the crown cap was invented. Tiny in design, the

    crown completely revolutionized the soft drink industry by preventing

    the escape of carbon dioxide from bottled beverages. In fact, it was

    the dominant soft drink closure for more than 70 years.

    Soon the crown caps success was being felt at the corner

    pharmacy. As home consumption of soft drinks grew, demand at the

    corner drug store began to dwindle. Many pharmacists, realizing thepromising future of soft drinks, abandoned their trade to become full-

    time bottlers. Others began stocking soft drinks in their stores. Horse

    drawn wagons traveled Americas streets, loaded with brand-name soft

    drinks and headed for growing retail outlets.

    While the crown cap helped lead the way to soft drinks in the

    home, it was not until the 1920s that the trend took hold. Theinvention of Hom-Paks, the first six-pack cartons, made it more

    convenient to carry products back to the house. Their use resulted in

    the increased availability and the growing popularity of soft drinks

    across America.

  • 8/6/2019 Final Cold Drinks

    10/53

    50

    The appearance of the automobile heralded a new era for the

    soft drink industry. Roadside stands appeared across the country.

    Service stations became major outlets for bottled refreshment, and

    large motorized delivery trucks were better able to satisfy thecountrys growing taste for liquid refreshment.

    Automatic vending machines began to appear in the 1920s,

    once again changing the business of soft drinks. Vending machines

    and fountain dispensers led the way to the expansion of soft drinks to

    industrial outlets. Americans could now consume the popular

    beverage at home or at work.

    New technology helped soft drink bottlers meet growing

    consumer demand by significantly increasing the products availability,

    Traditional 6-ounce split bottles grew to 8-ounce and then larger and

    larger containers. Today, with more than 2 million soft drink vending

    machines in the U.S., refreshment is literally right around the corner.

    The mushrooming demand for product resulted in the growth ofthe soft drink industry, from the pharmacies into a national industry;

    Inventors of soft drinks spread their products across America by

    opening a few strategically placed bottling facilities.

    America by opening a few strategically placed bottling facilities

    through franchise agreements. Eventually it became clear that

    supplying a growing nations thirst for soft drinks would require morethan a few additional bottling plants. But until the 1980s, the industry

    was primarily one of manual operations. Glass bottles were blown

    individually, while filing, sealing, mixing, and packaging were almost

  • 8/6/2019 Final Cold Drinks

    11/53

    50

    totally manual operations. Expansion could not occur without a more

    mechanized process.

    The changed between 1890 and 1910: New automated

    machinery was developed, making the soft drink industry more

    efficient and productive. The number of plants bottling soft drinks

    increased from 1,377 to 4,916, as sales soared.

    The industrial age was in full swing, Americas population was

    exploding and soft drink demand was booming. Together, the soft

    drink industry and the nation entered the era of mass production and

    national marketing.

    New, modern machinery turned out uniform products and

    significantly increased the production of soft drinks. By the time The

    Great Depression hit, carbonated beverages already were established

    as part of the American way of life. Consumers were unwilling to give

    up soft drinks one of the small pleasures they could still afford to

    enjoy.

    The Depression led the way to the creation of innovative new

    soft drink brands and containers, which continued during the 1940s

    and 50s.

    Responding to consumer demand, the industry rolled out soft

    drinks in cans and introduced diet beverages to the market. Carriers

    were developed for convenience and ease in taking soft drinks from

    the store to the home.

    Together, America and its soft drink industry suffered hardships

    caused by World War II. Shortages of cork, sugar and steel

  • 8/6/2019 Final Cold Drinks

    12/53

    50

    significantly impacted the manufacturing process, but soft drinks

    continued to be available to the public. The soft drink industry

    participated in scrap metal collection drives and made significant

    efforts to conserve natural resources in order to support the war effort.Soft drinks were classified as essential to soldier morale by the U.S.

    War Department and both the soft drink industry and federal

    government made every effort to provide troops with products. When

    unable to ship soft drinks directly to the soldiers, the government sent

    machinery and materials so they could be made on the spot.

    Since that time, the country has experienced significant

    progress-a man on the moon, color TV, computers and compact disc

    players. For the soft drink industry, it has meant the development of

    new flavors, the sale of canned products in vending machines, and the

    invention of Polyethlene Terephthalate (PET) bottles.

    Soft drink companies have kept pace with the nations endless

    thirst for refreshment. While many things have changed throughout

    the years, soft drinks continue to be Americas beverage of choice.

    Soft drinks are a good part of America.

    SOFT DRINKS INDUSTRY IN INDIA

    Introduction

    Soft drink market size of FinancialYear2002 was around 270

    million. cases (6480 million bottles). The market witnessed 5-6%

    growth in the early 90s. Presently the market growth has growth rate

    of 7-8% per annum compared to 22% growth rate in the previous year.

  • 8/6/2019 Final Cold Drinks

    13/53

    50

    The market size for FinancialYear2004 is expected to be 7000 million

    bottles.

    Soft drink production area

    The market preference is highly regional based. While Cola

    drinks have main markets in metro cities and northern cities and

    northern states of UP, Punjab, Haryana etc. Orange flavored drinks are

    popular in southern states. Sodas too are sold largely in southern

    states besides sale through bars. Western markets have preference

    towards mango-flavored drinks. Diet coke presently constitutes just

    0.7% of the total carbonated beverage market.

    Growth promotional activities

    The government has adopted liberalized policies for the soft

    drink trade to give the industry a boast and promote the Indian brands

    internationally. Although the import and manufacture of international

    brands like Pepsi and Coke is enhanced in India the local brands are

    being stabilized by advertisements, good quality and low cost.

    The soft drinks market till early 1990s was in hands of domestic

    players like Campa, Thumps Up, Limca etc. but with opening up of

    economy and coming of MNC players Pepsi and Coke the market has

    come totally under their control.

    The distribution network of Coca Cola had 6.5 lakhs outletsacross the country in FinancialYear2002, which the company is

    planning to increase to 8 lakhs by FinancialYear2003. On the other

    hand Pepsi Companys distribution network had 6 lakh outlets across

  • 8/6/2019 Final Cold Drinks

    14/53

    50

    the country during FinancialYear2002, which it is planning to increase

    to 7.5 lakh by FinancialYear2003.

    Types

    Soft drinks are available in glass bottles, aluminum cans and Pet

    bottles for home consumption. Fountains also dispense them in

    disposable containers Non-alcoholic soft drink beverage market can be

    divided into fruit drinks and soft drinks and soft drinks. Soft drinks can

    be further divided into carbonated and on-carbonated drinks. Cola,

    Lemon and Oranges are carbonated drinks while mango drinks come

    under non-carbonated category.

  • 8/6/2019 Final Cold Drinks

    15/53

    50

    CHAPTER II

    COMPANYPROFILE

  • 8/6/2019 Final Cold Drinks

    16/53

    50

    COCA COLA

    Company profile

    The Coca-Cola Company is the worlds largest beverage

    company, refreshing consumers with more than 2,800 products. Alongwith Coca-Cola, recognized as the worlds most valuable brand, the

    Companys portfolio includes 12 other billion dollar brands, including

    Diet Coke, Fanta, Coca-Cola Zero, vitaminwater, POWERADE,

    Minute Maid and Georgia Coffee. Globally, we are the No. 1

    provider of sparkling beverages, juices and juice drinks and ready-to-

    drink teas and coffees. Through the worlds largest beverage

    distribution system, consumers in more than 200 countries enjoy the

    Companys beverages at a rate of 1.5 billion servings a day. With an

    enduring commitment to building sustainable communities, our

    Company is focused on initiatives that protect the environment,

    conserve resources and enhance the economic development of the

    communities where we operate.

    FAST FACTS:

    Established: 1886

    Ranking: We own 4 of the worlds top 5 nonalcoholic sparkling

    beverage brands: Coca-Cola, Diet Coke,

    Company Associates: 90,500 worldwide (as of December 31, 2007)

    Operational Reach: 200+ countries

    Consumer Servings (per day): 1.5 billion

    Beverage Variety: We offer more than 2,800 products including diet

    and regular sparkling beverages, and still beverages such as 100

    percent juices, juice drinks, waters, sports and energy drinks, teas

    and coffees, and milk-and soy-based beverages.

    New York Stock Exchange Ticker Symbol: KO

  • 8/6/2019 Final Cold Drinks

    17/53

    50

    OUR MISSION:

    To refresh the world in body, mind and spirit

    To inspire moments of optimism through our brands and our actions

    To create value and make a difference everywhere we engage

    OUR COMMITMENT TO SUSTAINABILITY 2007/2008

    HIGHLIGHTS

    Respecting People We offered more than 1,600 training classes to

    Company associates.

    Protecting the Environment We achieved a 2% improvement in

    water use efficiency in 2007 as compared to 2006.

    Supporting Communities In 2007, The Coca-Cola Company and

    The Coca-Cola Foundation made charitable contributions of $99

    million to community initiatives worldwide.

    Offering Safe, Quality Products We launched more than 150 new

    low- and no-calorie products in 2007, increasing our low- and no-calorie beverage portfolio by 17%.

    2007 FINANCIAL HIGHLIGHTS:

    Our portfolio includes 13 billion dollar brands.

    Unit case volume grew 6% to 22.7 billion unit cases worldwide (as

    compared to 2006).

    Net operating revenues grew 20% to $28.9 billion (as compared to

    2006).

    More than 70% of our net operating revenues and nearly 75% of our

    unit case volume are generated outside of North America.

  • 8/6/2019 Final Cold Drinks

    18/53

    50

    We invested $4.1 billion to acquire glaceau, maker of

    vitaminwater the fast-growing premier active-lifestyle

    beverage

    The coca cola company is the global soft drink industry leader,with world head quarters in Atlanta, Georgia. The company and its

    subsidiaries employ nearly 30,000 people around the world. Syrups,

    concentrates and beverage bases for coca cola, the companys

    flagship brand, and over 160 other company soft drink brands are

    manufactured and sold by the coca cola company and its subsidiaries

    in nearly 200 countries around the world. Infact, approximately 70

    percent of company volume and 80 percent of company profit come

    from outside the United States. The products of the coca cola company

    touch lives everywhere. Their core brands have made an impact

    around the world, brands such as Fanta, Sprite, and of course, coca

    cola are available and recognized in many countries. Each of their

    brands is distributed in one or more countries and is tailored to the

    culture and tastes of those consumers. So wherever you are, you are

    sure to find a coca cola product to enjoy.

    The story begins in Atlanta, Georgia on May 8, 1886, when a

    pharmacist called Dr John Smith Pemberton first mixed coca cola in his

    back yard. The formula, which was made from carbonated water, cane

    sugar syrup, caffeine, extracts of kola nuts and cola leaves, was

    brought to the nearby Jacobs pharmacy where it made its debut as a

    soft drink the same day, selling for only 5 cents. His bookkeeper

    named this drink coca cola after the first two ingredients. And the

    same distinctive script he wrote it in is the same logo they use to this

    day.

  • 8/6/2019 Final Cold Drinks

    19/53

    50

    In January 1893 coca cola was registered with the US patent

    office. Later on in 1915 the root glass company created the famous

    contour glass bottle for coca cola in 1915.in 1917 coca cola was found

    to be the worlds most recognized trademark with a record of 3 millionCokes sold per day. Unfortunately John Pemberton fell ill, and did not

    live to see his products success.

  • 8/6/2019 Final Cold Drinks

    20/53

    50

    Brand Ambassadors of the Company

    Gautam Gambhir

    Hritik Roshan Aamir Khan

  • 8/6/2019 Final Cold Drinks

    21/53

    50

    HISTORY OF COCA COLA

    Early growth

    In 1893 Candler registered coca cola as a patented trademark.

    He also responded to growing concerns over the dangers of cocaine byreducing the amount of coca in the drink to a trace. However, he kept

    some coca extract in coca cola so the name would accurately describe

    the drink. Candler only had a patent on the name, and not the drink

    syrup that is, the drinks base, containing all the ingredients minus the

    carbonated water. He figured that keeping the coca in his formula

    would legally allow the company to distinguish its drink from

    imitations. Other companies also produced soda drinks made with kola

    nut extracts. in particular, the Pepsi cola company and its cola of the

    same name would become coca colas major competitor over the next

    few decades.

    Candler also spent more than $11,000 on his first massive

    advertising campaign in 1892.the coca cola logo appeared across the

    country, painted as a mural on walls, displayed on posters and soda

    fountains where the drink was served. And imprinted on widely

    marketed, common household items, such as calendars and drinking

    glasses. In addition, Candler was the first person ever to use coupons

    to gain customers for a product. He distributed flyers offering free soda

    fountain glasses of coca cola to people visiting his drugstore.

    In 1894 the coca cola company opened its first coke syrup

    production plant outside of Atlanta, in Dallas, Texas. That same year a

    candy store owner in Vicksburg, Mississippi, installed bottling machines

    and produced the first bottled coke. It had previously been sold only at

  • 8/6/2019 Final Cold Drinks

    22/53

    50

    soda fountains. By 1895 the drink was sold in all American states and

    territories.

    In 1899 lawyers Benjamin Thomas and Joseph whitehead ofChattanooga, Tennessee, bought the exclusive rights to distribute coke

    syrup to bottlers throughout most of the country for only one dollar. At

    the same time, Candler saw little profit in bottling, and was more than

    willing to give up that part of the business.

    In 1915 the root glass company created a contour glass bottle

    for coke, its design based on the curvature of a coca cola bean. This

    bottle design became a coke trademark worldwide. The same year,

    Candler retired from the company. In 1919 Candler family sold coca

    cola to businessman Ernest Woodruff of Columbus, Georgia, for $25

    million.

    War time developments

    During world war2 (19391945), Woodruff also boosted cokes

    popular image in the United States by pledging that his company

    would provide coke to every U S soldier. The company did not limit

    itself, however, to only doing business that would increase its success

    in America. In the period leading up to the war, between 1930 and

    1936,it had set up a division of the company in Germany, and it

    continued that venture during the war. It recreated its image as a

    German company and allowed the Germans to produce all but two,

    secret, coca cola ingredients in their own factories.

    In 1941 the German companys president, Maqx Keith, developed

    Fanta orange soda using orange flavoring and all the German made

  • 8/6/2019 Final Cold Drinks

    23/53

    50

    Coke ingredients. The coca cola companys wartime efforts helped it

    expand its global market, often with the economic support of the U.S

    government. By the end of the war in 1945, it had established 64

    overseas bottling plants. That same year the company registered apatent on coca colas popular nickname, Coke.

    Post war growth

    In 1955 Robert Woodruff retired as the Coca Cola companys

    president. Candler and Woodruff are remembered as the two most

    important figures in the companys early growth, both for their

    contribution to the company and their considerable fortunes donated

    to the city of Atlanta. After Woodruffs departure, the company began

    to diversify by producing new products, acquiring new business, and

    entering new international markets. In 1960 the Coca Cola Company

    purchased the minute maid corporation, producer of fruit juices, and

    began offering coke in canes. Between 1960 and 1963 it also launched

    for new soft drinks in the United States. Fanta an orange soda, Sprite,

    a lemon lime soda etc. in 1964 the company acquired the Duncan

    foods corporation. In 1967 it created the coco cola foods division by

    merging its Duncan and Minute maid operations.

    In the late 1960s, coca cola faced difficulties in some of its

    foreign markets. When the company built a bottling plant in Israel at

    the outset of of the Arab-Israeli War, the government of all Arab league

    nations banned the production and sale of Coke. A year later the

    company withdrew from its market in India when Indian government

    requested that Coca cola reduce its equity in joint ventures to 40

    percent. The company refused to relinquish so much control over those

  • 8/6/2019 Final Cold Drinks

    24/53

    50

    operations. In 1977 Coca cola began packaging Coke and other drinks

    in two liters plastic bottles. In 1982 the company introduced Diet Coke,

    which soon became the best selling diet soft drink in the world.

    In 1982 coca cola purchased the motion-picture companyColumbia picture industries, Inc, also known as Tri-Star Pictures, for

    almost $ 700 million. Two years later, the company sold off its

    Columbia holdings and other media acquisitions to Sony Corporation

    for over $1.5 billion.

    Recent developments

    In 1986 the Coca Cola Company consolidated all of its non

    franchised U.S bottling operations as Coca Cola enterprises, Ink. The

    new company began acquiring independent bottling companies, a

    venture that grew in to the worlds largest bottler of soft drinks by

    1988.While Coca-Cola Enterprises distributes over half of all Coca Cola

    products in the united states, small franchise businesses continue to

    bottle, can, and distribute the companys drinks worldwide.

    In 1987 the Coca Cola Company was listed in the prestigious Dow

    Jones industrial Average index of stock market performance. Its stock

    is traded on the New York stock exchange. Coca Cola and Pepsi

    Company products occupied nine of the top ten spots in the U.S. At

    present Coca Cola ranked first in soft drink sales, and the company

    earned almost 80 percent of its profit from international sales.

  • 8/6/2019 Final Cold Drinks

    25/53

    50

    EVOLUTION OF COCA COLA

    Asa G. Candler, a natural born salesman, transformed Coca-Cola

    from an invention into a business. He knew there were thirsty people

    out there, and Candler found brilliant and innovative ways to introduce

    them to this exciting new refreshment. He gave away coupons for

    complimentary first tastes of Coca-Cola, and outfitted distributing

    pharmacists with clocks, urns, calendars and apothecary scales

    bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and

    the aggressive promotion worked. By 1895, Candler had built syrup

    plants in Chicago, Dallas and Los Angeles. Inevitably, the soda'spopularity led to a demand for it to be enjoyed in new ways. In 1894, a

    Mississippi businessman named Joseph Biedenharn became the first to

    put Coca-Cola in bottles. He sent 12 of them to Candler, who

    responded without enthusiasm. Despite being a brilliant and innovative

    businessman, he didn't realize then that the future of Coca-Cola would

    be with portable, bottled beverages customers could take anywhere.

    He still didn't realize it five years later, when, in 1899, two

    Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead,

    secured exclusive rights from Candler to bottle and sell the beverage --

    for the sum of only one dollar.

  • 8/6/2019 Final Cold Drinks

    26/53

    50

    Imitation may be the sincerest form of flattery, but The Coca-Cola

    Company was none too pleased about the proliferation of copycat

    beverages taking advantage of its success. This was a great product,

    and a great brand. Both needed to be protected. Advertising focused

    on the authenticity of Coca-Cola, urging consumers to "Demand the

    genuine" and "Accept no substitute."

    The Company also decided to create a distinctive bottle shape to

    assure people they were actually getting a real Coca-Cola. The Root

    Glass Company of Terre Haute, Indiana, won a contest to design a

    bottle that could be recognized in the dark. In 1916, they began

    manufacturing the famous contour bottle. The contour bottle, which

    remains the signature shape of Coca-Cola today, was chosen for its

    attractive appearance, original design and the fact that, even in the

    dark, you could identify the genuine article.

    As the country roared into the new century, The Coca-Cola

    Company grew rapidly, moving into Canada, Panama, Cuba, PuertoRico, France, and other countries and U.S. territories. In 1900, there

    were two bottlers of Coca-Cola; by 1920, there would be about 1,000.

  • 8/6/2019 Final Cold Drinks

    27/53

    50

    Perhaps no person had more impact on The Coca-Cola Company

    than Robert Woodruff. In 1923, four years after his father Ernest

    purchased the Company from Asa Candler, Woodruff became the

    Company president. While Candler had introduced the U.S. to Coca-

    Cola, Woodruff would spend more than 60 years as Company leader

    introducing the beverage to the world beyond.

    Woodruff was a marketing genius who saw opportunities for

    expansion everywhere. He led the expansion of Coca-Cola overseas

    and in 1928 introduced Coca-Cola to the Olympic Games for the first

    time when Coca-Cola traveled with the U.S. team to the 1928Amsterdam Olympics. Woodruff pushed development and distribution

    of the six-pack, the open top cooler, and many other innovations that

    made it easier for people to drink Coca-Cola at home or away. This new

    thinking made Coca-Cola not just a huge success, but a big part of

    people's lives.

  • 8/6/2019 Final Cold Drinks

    28/53

    50

    In 1941, America entered World War II. Thousands of men and

    women were sent overseas. The country, and Coca-Cola, rallied behind

    them. Woodruff ordered that "every man in uniform gets a bottle of

    Coca-Cola for 5 cents, wherever he is, and whatever it costs the

    Company." In 1943, General Dwight D. Eisenhower sent an urgent

    cablegram to Coca-Cola, requesting shipment of materials for 10

    bottling plants. During the war, many people enjoyed their first taste of

    the beverage, and when peace finally came, the foundations were laid

    for Coca-Cola to do business overseas.

    Woodruffs vision that Coca-Cola be placed within "arm's reach of

    desire," was coming true -- from the mid-1940s until 1960, the number

    of countries with bottling operations nearly doubled. Post-war America

    was alive with optimism and prosperity. Coca-Cola was part of a fun,

    carefree American lifestyle, and the imagery of its advertising -- happy

    couples at the drive-in, carefree moms driving big yellow convertibles

    -- reflected the spirit of the times.

  • 8/6/2019 Final Cold Drinks

    29/53

    50

    After 70 years of success with one brand, Coca-Cola, the

    Company decided to expand with new flavors: Fanta, originally

    developed in the 1940s and introduced in the 1950s; Sprite followed

    in 1961, with TAB in 1963 and Fresca in 1966. In 1960, The Coca-

    Cola Company acquired The Minute Maid Company, adding an entirely

    new line of business -- juices -- to the Company.

    The Company's presence worldwide was growing rapidly, and

    year after year, Coca-Cola found a home in more and more places:

    Cambodia, Montserrat, Paraguay, Macau, Turkey and more.

    Advertising for Coca-Cola, always an important and exciting part

    of its business, really came into its own in the 1970s, and reflected a

    brand connected with fun, friends and good times. The international

    appeal of Coca-Cola was embodied by a 1971 commercial, where a

    group of young people from all over the world gathered on a hilltop in

    Italy to sing "I'd Like to Buy the World a Coke."

    In 1978, The Coca-Cola Company was selected as the only

    Company allowed to sell packaged cold drinks in the People's Republic

    of China.

  • 8/6/2019 Final Cold Drinks

    30/53

    50

    The 1980s -- the era of legwarmers, headbands and the fitness

    craze, and a time of much change and innovation at The Coca-Cola

    Company. In 1981, Roberto C. Goizueta became chairman of The Board

    of Directors and CEO of The Coca-Cola Company. Goizueta, who fled

    Castro's Cuba in 1961, completely overhauled the Company with a

    strategy he called "intelligent risk taking."

    Among his bold moves was organizing the numerous U.S. bottling

    operations into a new public company, Coca-Cola Enterprises Inc. He

    also led the introduction of diet Coke, the very first extension of the

    Coca-Cola trademark; within two years, it had become the top low-

    calorie drink in the world, second in success only to Coca-Cola.

    One of Goizueta's other initiatives, in 1985, was the release of a

    new taste for Coca-Cola, the first change in formulation in 99 years. In

    taste tests, people loved the new formula, commonly called new

    Coke. In the real world, they had a deep emotional attachment to the

    original, and they begged and pleaded to get it back. Critics called it

    the biggest marketing blunder ever. But the Company listened, and the

    original formula was returned to the market as Coca-Cola classic, andthe product began to increase its lead over the competition -- a lead

    that continues to this day.

  • 8/6/2019 Final Cold Drinks

    31/53

    50

    The 1990s were a time of continued growth for The Coca-Cola

    Company. The Company's long association with sports was

    strengthened during this decade, with ongoing support of the Olympic

    Games, FIFA World Cup football (soccer), Rugby World Cup and the

    National Basketball Association. Coca-Cola classic became the Official

    Soft Drink of NASCAR racing, connecting the brand with one of the

    world's fastest growing and most popular spectator sports.

    And 1993 saw the introduction of the popular "Always Coca-Cola"

    advertising campaign, and the world met the lovable Coca-Cola Polar

    Bear for the first time. New markets opened up as Coca-Cola products

    were sold in East Germany in 1990 and returned to India in 1993.

    New beverages joined the Company's line-up, including

    Powerade sports drink, Qoo children's fruit drink and Dasani

    bottled water. The Company's family of brands further expanded

    through acquisitions, including Limca, Maaza and Thums Up in

    India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury

    Schweppes' beverage brands in more than 120 countries around the

    world. By 1997, the Company already sold 1 billion servings of its

    products every day, yet knew that opportunity for growth was still

    around every corner.

  • 8/6/2019 Final Cold Drinks

    32/53

    50

    In 1886, Coca-Cola brought refreshment to patrons of a small

    Atlanta pharmacy. Now well into its second century, the Company's

    goal is to provide magic every time someone drinks one of its more

    than 400 brands. Coca-Cola has fans from Boston to Budapest to

    Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In

    the remotest comers of the globe, you can still find Coca-Cola.

    Coca-Cola is committed to local markets, paying attention to

    what people from different cultures and backgrounds like to drink, and

    where and how they want to drink it. With its bottling partners, the

    Company reaches out to the local communities it serves, believing that

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

    From the early beginnings when just nine drinks a day were

    served, Coca-Cola has grown to the worlds most ubiquitous brand,

    with more than 1.4 billion beverage servings sold each day. When

    people choose to reach for one of The Coca-Cola Company brands, the

    Company wants that choice to be exciting and satisfying, every single

    time.

  • 8/6/2019 Final Cold Drinks

    33/53

    50

    CHAPTER III

    RESEARCH

    METHODOLOGY

  • 8/6/2019 Final Cold Drinks

    34/53

    50

    RESEARCH METHODOLOGY

    Scope of the Study

    The study is exclusively conducted on the soft drinks industry to

    analyze and obtain insights into the consumer buying behavior towards

    soft drinks. It was carried out within city over a period of two weeks

    and also to compare the leading brands in the soft drink industry. The

    research also encompasses the usage pattern exhibited by the

    consumers. 20 RESPONDENTS WERE SELECTED RANDOMLY. They were

    asked questions and their opinions well received in writing in every

    questionnaire.

    Objective of the Study

    To determine the factors that led the consumer to use a particular

    brand of soft drinks.

    To determine which brand of soft drink is widely used in city.

    A critical comparison of the leading brands, namely Coco cola and

    Pepsi.

    To analyze the various factors that influences the buying behaviour

    with respect to soft drinks.

    To evaluate the consumption pattern of consumers with respect to

    soft drinks.

  • 8/6/2019 Final Cold Drinks

    35/53

    50

    SAMPLE DESIGN

    Type of sampling Non random sampling has been administered in

    the project which is arbitrary and subjective. Each member does not

    have a known non-zero chance of being included.Moreover Judgment

    & Convenient study was used in sampling method

    Sample Size - A sample of 20 respondents was considered as sample

    size for the research. The sample size is selected by considering

    characteristics of interest and objectives of the study. Their

    suggestions and recommendations duly recognized.

    DATA COLLECTION

    Primary Data - The main tool that has been used in data collection is

    questionnaire that has been constructed for this purpose. A

    respondent was interviewed and data was collected.

    Secondary Data - Secondary data was collected from various books;

    journals research papers from magazines and also the internet.

    Data Analysis

    The entire data analysis was done through bar diagrams, pie charts,

    and through percentage method.

  • 8/6/2019 Final Cold Drinks

    36/53

    50

    CHAPTER IV

    ANALYSIS &

    INTERPRETATION

  • 8/6/2019 Final Cold Drinks

    37/53

    50

    Q1. Which of the following is your favorite brand? (Any One)

    Coca Cola Pepsi Sprite Mirinda40 30 10 20

    Interpretation:

    From table it is clear that maximum no of respondents are prefer the

    brand of Coca Cola soft drink and least are preferring the soft drink of

    Sprite .

  • 8/6/2019 Final Cold Drinks

    38/53

    50

    Q2. Why do you prefer it?

    Reasonable Price Taste Brand

    Recognition

    Influence of

    celebrities15 55 25 5

    Interpretation:

    From table it is clear that maximum no of respondents prefer the

    product due to its best taste.

  • 8/6/2019 Final Cold Drinks

    39/53

  • 8/6/2019 Final Cold Drinks

    40/53

    50

    Q4. In what quantities do you purchase your soft drink?

    200 ml 300 ml 500 ml 2 Ltrs.15 15 30 40

    Interpretation:

    From the above chart it is clear that maximum number of respondents

    prefer to buy the product with 2 liters quantity packing.

  • 8/6/2019 Final Cold Drinks

    41/53

    50

    Q5. What kind of promotional Schemes do you prefer?

    Free Gifts Free Samples Extra Quantity Cash Discounts

    20 10 55 15

    Interpretation:

    From the above chart it is clear that the maximum respondents prefer

    to buy the product with Extra Quantity with same price.

  • 8/6/2019 Final Cold Drinks

    42/53

  • 8/6/2019 Final Cold Drinks

    43/53

    50

    Q7. Who influence your soft drink buying decision?

    Friends Family Advertisements Celebrities

    25 20 40 15

    Interpretation:

    From the above chart it is clear that maximum no of respondents are

    influenced by the advertisement to buy the soft drink of particular

    brand followed by friends, family & celebrities.

  • 8/6/2019 Final Cold Drinks

    44/53

  • 8/6/2019 Final Cold Drinks

    45/53

    50

    Q9. Have you ever faced any problem with your product?

    Yes No

    25 75

    Interpretation:

    From the above table it is clear that maximum no of respondents

    doesnt face any such type of problem with their softdrink.

  • 8/6/2019 Final Cold Drinks

    46/53

    50

    Q10. Are you satisfied with your product?

    Yes No

    80 20

    Interpretation:

    From the above table it is clear that maximum no of respondents are

    satisfied with the product which they are presently using.

  • 8/6/2019 Final Cold Drinks

    47/53

    50

    CHAPTER V

    IMPLICATION &LIMITATIONS

  • 8/6/2019 Final Cold Drinks

    48/53

    50

    IMPLICATION & LIMITATIONS

    Limitations of the Study

    The sample for the study is taken from only 20 respondents. This

    can act as a constraint in the study.

    Descriptive study tends to get cumbersome and they seem to be

    more complex then they appear.

    The Area undertaken in research was very limited. But to do a

    complete research a wide area is required, so the area is also

    a constraint of the study.

    The time of research was short due to which many fact has

    been left untouched.

    While collecting data some of the respondents are not willing

    to fill the questionnaire, so they might not fill their true

    behavior. This can also be a constraint of the study.

  • 8/6/2019 Final Cold Drinks

    49/53

    50

    CHAPTER-VI

  • 8/6/2019 Final Cold Drinks

    50/53

    50

    SUGGESTIONS &

    RECOMMENDATION

    S

  • 8/6/2019 Final Cold Drinks

    51/53

    50

    SUGGESTIONS & RECOMMENDATIONS

    Based on the analysis and the views of respondents we can make the

    following suggestions: -

    In todays competitive market the various soft drink companies

    should maintain and give priority to quality and taste of the product

    which is the primary consideration that customers sort while

    purchasing a soft drink.

    Advertisement definitely influence the consumers buying

    behavior towards soft drinks. Thus more and more advertisement in

    boosting up the sales of the soft drinks.

    Packaging is another important factor that influences the success

    or failure of a brand, therefore bottles should be made colorful and

    attractive.

    Soft drinks companies should concentrate on distribution channeland should provide various kinds of promotional schemes like Extra

    Quantity which is at utmost preference, while free gifts, cash

    discounts and free samples are other promotional schemes which

    helps in the promotion of the particular brand.

    According to respondents Electronic media is the most effective

    media for advertising soft drinks.

  • 8/6/2019 Final Cold Drinks

    52/53

    50

    BIBLIOGRAPHY

    BOOKS

    Marketing Management, Kotler Philip, 12th Edition, Pearson

    Education.

    Marketing Research, G.C Beri, 3rd Edition, Tata McGraw Hill.

    Research Methodology, C.R Kothari.

    Consumer Behaviour, Schiffman & Kaunak, 9th Edition, Pearsion

    Education.

    MAGAZINES & JOURNALS

    Business standard(News Paper)

    Indian Journal of Marketing, March 2006, Article By Dr.Banusmathy

    Business World, November 2007

    Business India, Advertising

    WEBSITES

    www. Wikipedia.org

    www.thehindubusinessline.com/iw/2006/06/11/images/2006061101

    041301.jpg

    http://images.google.co.in/images?

    um=1&hl=en&q=brand+ambassadors+of+coca+cola&btnG=Searc

    h+Images

    www. consumerpsychology. Com

  • 8/6/2019 Final Cold Drinks

    53/53

    http://images.google.co.in/images?

    hl=en&q=Evolution+of+Soft+Drinks&start=21&sa=N&ndsp=21