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Marketing Strategies Of Coca Cola

INTRODUCTION

HISTORY: HISTORY:

Coca-Cola Enterprises, established in 1986, 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 Coca-Cola that is the foundation for

this Company.

The Coca-Cola Company traces it’s 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 split-adjusted

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

1Padmashree Dr. D.Y. Patil University's Department of Business Management


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



COMPANY PROFILE:

If we Indians recall our memory there was a time when one was asked for a soft

drink, the brand that comes and gave a knock on our mind was Coca-Cola. Coca-

Cola, the word most admired trademark has maintained its special a sense of

belongingness to India, which had resulted some sort of its monopoly throughout

the Indian soft drink market. It has been said that the internal environment of the

industry has been greatly effected from its internal environment. The same thing

was also happen with this famous company. When the Government policy were in

introduce and forced this MNC's to go outside from the India market. Hence, it was

thrown out of India in the year 1977. A lacuna was created at that time in the

country's soft drinks market. How ever after a gap of 17 years, the Coca-cola has

reappeared in the soft drinks market of India, by making itself more strong and

confident in this field

In today's market, the cola's (Coke, Thumsup, Pepsi, etc.) had a 70% share, Lemon

10% and Orange 20%. There appears to be a concentrated rush to bag a share in

the soft drinks market. Due to amanifold increase in the demand of soft drinks

large number of company has entered into this competitive market scenario.

During the Second World War Pepsi and Coke, both of them enjoyed a huge sale.

After the war the Pepsi sales started to fall relatively to Coke. The factors which

were responsible for the decline in Pepsi sales were poor image, poor task force,

poor quality control and dull packaging.

It was a momentous day when Coca-Cola staged its reliance in India. Coca-Cola

was relaunched again in India in Sep. 1993 at Hathras near Agra, where the first

bottling facility of Coca-Cola in India was switched on. The Indian people



welcomed the comeback of their most loved cola in the country with great

enthusiasm and vigor. Coca-Cola market its relaunching acquiring 5 Parle Exports

Ltd. Top Selling products Viz-Thums up, Sprite, Limca, Fanta, Mazza,

K.Soda,Kwater,Coke.

In 2000, the company opened a new bottling plant at Dasna in Agra distt. For the

supply of 300 ml Bottle and 1.5 liter Bottles. This plant is more settled equipped

than the plant at Ghaziabad.



OBJECTIVE OF COCA COLA

The company has sales based objective .Everything else (marketing plan,

advertising plan, production etc.) is derived from this objective. Currently the

company‘s objective is to

“Increase the volume of sales up to the maximum level as much as possible during

the current fiscal year.”

The company sets its objective keeping in view the past performance, Historical

trends, current market position, economic condition, macro environment and micro

environment factors, social values, market size and growth rate ,future expectations

and predictions.



MANAGEMENT:MANAGEMENT:

The hierarchy of Coca Cola Company is as follows.


ChairmanBoard of governors

Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents


PRODUCTS:

There are different brands of the Coca Cola Company, which are currently in use

throughout 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



Financial Report

THE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME

Year Ended December 31, 2010 2009 2008

(In millions except per share data)

Net operating Revenue $ 35,119 $ 30,990 $ 31,944 Costs of goods sold 12,693 11,088 11,374

GROSS PROFIT 22,426 19,902 20,570Selling, general and administrative expenses 13,158 11,358 11,774Other operating charges 819 313 350

OPERATING INCOME 8,449 8,231 8,446Interest income 317 249 333Interest expense 733 355 438Equity income (loss) — net 1,025 781 (874)Other income (loss) — net 5,185 40 39

INCOME BEFORE INCOME TAXES 14,243 8,946 7,506Income taxes 2,384 2,040 1,632

CONSOLIDATED NET INCOME 11,859 6,906 5,874Less: Net income attributable to non 50 82 67Controlling interests

NET INCOME ATTRIBUTABLE $ 11,809 $ 6,824 $ 5,807TO SHAREOWNERS OF THE COCA-COLA COMPANY

BASIC NET INCOME PER SHARE1 $ 5.12 $ 2.95 $ 2.51

DILUTED NET INCOME PER SHARE1 $ 5.06 $ 2.93 $ 2.49

AVERAGE SHARES OUTSTANDING 2,308 2,314 2,315

Effect of dilutive securities 25 15 21

AVERAGE SHARES OUTSTANDING 2,333 2,329 2,336

ASSUMING DILUTION



MARKET SHARES

pepsi36%

coca-cola58%

others7%

MARKET SHARES

thums up22%

Sprite18%

coke12%

Fanta 15%

Limca 16%

Maaza11%

Diet coke7%

Market shares



COMPETITOR

The biggest and perhaps the only serious for the coca-cola worldwide has an

already been Pepsi. In India, as per as the Cola segment is concerned the with the

biggest competition to coke comes from its brands of Pepsi viz. Pepsi and Mirinda.

Thums-up, which was the leading brand of Parley product, was acquired by Coca-

Cola just over a year ago to bolster its market share in India. Today, Thums-up

along with coke, the leading brand of the Coca-Cola Company, other still

competition to Pepsi, which despite this stiff competition is still by far the single

most popular Cola drink in India With both the companies being backed fully by

the parent concerns based in the united state, the fight to become the dominant

player in the huge Indian Soft drink market continues unabated. Aggressive ad

campaigns, sale-promotion, schemes for retailers are just some of the strategies

being adopted by the two companies to outwit each other and grab and large share

of the market.

The Cola segment, which occupies by far the largest chunk of the soft drink market

in India, the market share of Coke is 60%while the market share of Thumps-up is

32.16%. The market share of Coke in this Cola Segment is 27.84%. The remaining

market share is occupied by the other brands, which constitute about 14% of the

Cola market share.



COMPETITIVE AREA

The soft drink market all over the world has been witnessing a neck to neck battle

between the two major players, Coca-Cola and Pepsi since the very beginning. The

thirst quenchers are trying hard to have to major chunk of the pie of carbonated

soft drink market. Both the players are spending their energies in building capacity,

infrastructure, promotional activities etc.

Coca-cola being 11 years older than Pepsi has dominated the scene in most of the

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

But the Coca-Cola people are finding it hard to keep away Pepsi, which has been

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

nook and corner of the world. While Coca-Cola has been earning most of its bread

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

portion from the same business. The two warriors are face to once again here in

India with different strategies and tactics to attack the rival. Coca-Cola is focusing

upon the joint ventures with the existing bottlers (FOBO) franchise owned

bottling operations to enhance its control on manufacturing and marketing of its

products range and attain the quality standards of its class.

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

$ 95 billion to set Pepsi Company. India holdings, as subsidiary for (COBO)

Company owned bottling operations. Both the companies are following different

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

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

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

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



for 1.5 hours to buy a bottle of soft drink. Coca-Cola is well set with its 53 bottling

sites through out the country giving tit an edge over competition by processing a

well-built bottling and distribution set-up. On the other hand, Pepsi, with two more

years in India, has been able to set an image of a winner in India and has been able

to get the pulse of the India soft drink market. The soft drink giants are leaving on

stone unturned and her for the long terms.

In Coca-Cola camp, the idea of competition has not come from Pepsi, but from the

other beverages such as tea, coffee, Nimbu Pani, water etc. Pepsi is quite

aggressive in its approach to Indian Consumer. They are desperately working on

the strategy to be winners in the hot cola war between two big barons. According

to Pepsi philosophy, it's the madness that encourages executive to think, to conjure

up those creative tactics to knock the fizz out their competition.

They have been going with aggressive marketing by putting Sachin Tendulkar,

Akshay Kumar, Shahrukh Khan AND now Ranbir kapoor replace sharukh

khan in their advertisement to endorse their brand, the role models for its targeted

consumer the teenagers. They have increased the fizz in the market place by

introducing the dispensers called Fountain Pepsi and has been enjoying a lead over

its rival there.

Coca-Cola on the other hand, has been working on the saying slow and steady wins

the race's side by retailing to every more of its competitor. They have procured the

shield of Thums-Up with a handsome market share in Indian soft drink market.

Countering Pepsi's international commercial that used two chimpanzees to cock a

snoop at coke, Thums-up come with the ad line, Don't be Bandar, taste the



Thunder. Also Thums-Up has been positioned now very near to that young image

of Pepsi and giving it a though time. These cool merchants have put everything

on fire. It Coke got the status of the official drink of wills. World Cup, Pepsi

blushed as nothing official about it. As Thums-Up projected as 'Saaree Jahan

Se Achcha' Pepsi was passionate enough with 'Freedom to be' and now the "Yeh

Dil Mange More" when Thums-Up came with Thunder Blast, the other offered

'Pepsi Stuff Card'. If Red is meant for coke, Pepsi has chosen to be blue. Coca

Cola come with the punch line ---- " Thanda Matlab Coca Cola" ----- People in

India generally refers cold drinks as ‘thanda’. So Coke wanted to give an

impression that whenever a customer think of ‘Thanda’ he should think of Coca

Cola. So the Punchline makes ‘Thanda’ equal to Coca Cola.



Coke Vs Pepsi war begins

Its summertime and same old rivalry has resurfaced- “Coca Cola Vs Pepsi”! It’s

been decades since these Cold drink giants are fighting over Indian cold drink

market share. First it was cold drink, then the fight extended for other sections like

energy drinks, healthy snacks, nankeens etc. But I’m here to compare the strategies

of both of these Colas and put forward my views and what should or shouldn’t

work for any of these Cola giants-

Advertisements:It started with Fanta’s Holi ad for Coke, where Genelia De Souza

was seen in a retro look. The ad was fresh and sent a clear message. For some

reasons I had not been a Fan of Cola ads but this was unique and cool.

Just after this ad Coke’s another ad appeared on screens promoting Coca Cola and

featuring Imran Khan. This ad really takes all the points away for its brilliant

execution- be it the concept, the background score or the super cute looks of both

Imran and the western lady.

Pepsi also started showing its new “Ranbir Kapoor” ad on TV, but with the same

‘Youngistan’ concept. I didn’t like it, ad is good but concept is too cliché now for

Pepsi. The ad concept worked earlier as it was new and Coke didn’t have anything

competitive.

Coke wins this ad war as for now. Let’s see how these two promote other products

in time to come.

Products:It was Pepsi first which understood varied needs of Indian taste and

introduced various India centric products like ‘Kukure’ and ‘Lays with Indian

flavours’ . On the other hand Coca Cola considered India as a regional outpost



until last year, but after the economy toppled else where they should take India

seriously from now on. Now there are two other sections where they both are

competing- energy drinks and Lemon water/mango juice/other juice. Pepsi entered

into market with ‘Nimbooz’ which was success, and hence Coke is planning to

launch ‘Minute Maid Nimbu Fresh’ this year. But in Mango drinks they both have

strong market presence; ‘Mazaa’ and ‘Slice’ compete with Parle’s ‘Frooti’ in this

segment.



MARKETING MIX OF COCA-COLA

Marketing mix is the set of marketing tools that the firm uses to pursue its

marketing objective of in the target market. The marketing problems are analyzed:

1. By utilizing the important forces emanating from the marketing operation of an

enterprise.

2. By adopting producer & for an efficient marketing programme.

Firstly, we will look at how Coca-Cola has used their marketing mix. The

marketing mix is divided up into 4 parts; product, price, promotions and place.

1. Product:

The product (Coca-Cola soft drink) includes not just the liquid inside but also the

packaging. On the product-service continuum we see that a soft drink provides

little service, apart from the convenience. Soft drinks satisfy the need of thirst.

However, people are always different, some want more and others want less.

Therefore Coca-Cola has made allowances for that by providing many sizes. They

also have particular tastes, and again they have provided several options. So,

although thirst is what is needed to be satisfied and that is the core benefit, we are

receiving other benefits in the taste and size. Coca-Cola has developed several

different flavors and sizes as mentioned above, but also several brands such as

Sprite, Lift, Fanta and Diet Coke which increase the product line length, thus

making full use of the market to maximize sales.

The product is convenient, that is - bought frequently, immediately, and

with a minimum of comparison and buying effort. The appearance of the product is

eye catching with the bright red colour. It has a uniquely designed bottle shape

that fits in your hand better, and creates a nicer & more futuristic look.



The quality of the soft drink is needed to be regularly high. Sealed caps ensure that

none of the "fizz" is lost. The bottles are light, with flexible packaging, so they

won't crack or leak, and are not too heavy to casually walk around with. The cans

are also light and safe

Product Lifecycle of Coke:

Product life cycle has four phases

1. Introduction

2. Growth

3. Maturity

4. Decline.

The markets where Coke is a dominant player are United States of America,

Europe and Asia, Africa. There is a vast difference in terms of above given phases

for example, in U.S.A & Europe it has reached maturity stage where it can’t

expand its market more but if we consider Asia, it is still in the growth phase.

Coca-Cola is currently going through the maturity stage in Western countries. This

maturity stage lasts longer than all other stages. Management has to pay special

attention to products during this stage of the product life-cycle. During the maturity

stage, products usually go through a slowdown in sales growth. According to

Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last

year. This percentage has no comparison to the high level of growth Coca-Cola



enjoyed during its growth stage. To add a little variation Coca-Cola took the Coca-

Cola Classic and added variations to it, including Cherry Coke, Vanilla Coke and

Diet Coke. Also Coca-Cola went from 6-oz. glass bottles to 8-oz. cans to plastic

liter bottles, all helping increase consumption.


COCA-COLA


2. Price:

Like any company who has successfully endured a century of existence, Coca-

Cola has had to remain tremendously fluent with their pricing strategy. They have

had the privilege of a worthy competitor constantly driving them to be smarter,

faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the

sharper we have to be. If the Coca-Cola Company didn't exist, we'd pray for

someone to invent them." states it simply. The relationship between Coca-Cola &

Pepsi is a healthy one that each corporation has learned to appreciate.

Throughout the years Coca-Cola has made many pricing decisions but one might

say that their ultimate goal has always been to maximize shareholder value. As

cola consumption has decreased in the US colas have come to realize the untapped

international market. In 2003 both Coke and Pepsi had a solid presence in India

and had each introduced a 300mL bottle. In order to grab market share Pepsi began

to drop prices (even with summer approaching, which was contrary to policy in

America). Shortly thereafter, Coca-Cola decided to drop their prices slightly, but

focused on the reduced price point of their 200mL container. Coca- Cola planned

to use the lower price point to penetrate new cities that were especially price

sensitive. The carbonated soft drink market in India is nearly 37% of the total

beverage market there.

This low price strategy was not unfamiliar to Coca-Cola. Both Coke & Pepsi

utilized a low price strategy in the early 1990s. After annihilating the low price

store brands, Coke chose to reposition itself as a "Premium" brand and then raise

prices.



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. It creates consumer

perceptions and values. 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. This is known as value-based pricing and is used by many

other industries in attracting consumers.

In India, the average income of a rural worker is Rs.500 a month. Coca Cola

launched a 200 ml bottle for just Rs.5, an affordable amount on the pockets of the

rural audience.

3. Place:

Coca-Cola entered foreign markets in various ways. The most common modes of

entry are direct exporting, licensing and franchising. Besides beverages and their

special syrups, Coca-Cola also directly exports its merchandise to overseas

distributors and companies. Other than exporting, the company markets

internationally by licensing bottlers around the world and supplying them with the

syrup needed to produce the product. There are different types of franchising. The

type that is used by Coca-Cola Company is manufacturer-sponsored wholesaler

franchise system. It is very comparable to licensing but the only difference is that

the finished products are sold to the retailers in local market.



Coca Cola has managed their company’s marketing and sales strategy within

channels. Have you ever considered the significance of the Coke vending machine

to the success and profitability of the Coca Cola company? This channel is direct

to consumer and vending machines often have little to no competition and no trade

or price promotions.

The Coke Company operates three primary delivery systems for its business

channels:

Bulk delivery for the channels of large Supermarkets, Mass

Merchandisers and Club stores;

For smaller channels Coke does advanced sale delivery for

convenience stores, drug stores, small supermarkets and on-premise

fountain accounts.

Full service delivery for its full service vending customers.

Key Channel Listing

Supermarkets

Convenience Stores

Fast Food

Petroleum Retailers

Chain Drug Stores

Hotels/Motels/Resorts

Mass Merchandisers

Coca-Cola floods all possible retailing stores in satisfying the third part, place. In

supermarkets and convenient stores, Coca-Cola products are always easy to



identify, and usually make up the greater proportion of options to buy. This

increases their market exposure through effective use of the retailers. For a FMCG

it is important that they can be found and purchased easily. With many automatic

Can machines located in many sports stadiums and shopping malls, you don't even

need to go to a store to buy a drink. This greatly enhances the speed of purchase.

PROMOTION:

Coca cola spend huge amount of money in promotion activates Top line

promotions

Top line promotion: T.V ads, banner, celebrity

Bottom line promotion: promotion schemes, publicity material



SEGMENTATION OF COCA-COLA

Geographic segmentation

coke segments its products country wise and region wise. The most important thing

is taste and quality which varies to the taste and income level of the people in that

country.

Region- urban , suburbs, and they are also penetrating into rural market

Climate- The main idea is to serve it cold,so they focus on the hot areas. Basically

towards the east and centre.

Demographic segmentation-

Age-The audiences of coca cola ranges from the age of 15 -25 and reaches 40.

Coke specifically target younger than older.

Income- coke segments different income levels by packing its product

economically. For small income people it has small glass bottles of Rs.5 . For

middle people it has small non returnable bottle Rs20. For higher income people it

has coke tin for Rs 25.

Gender- coke basically targets both the male and female. For female they have

come up with their diet coke.

Family type- Coke is basically for nuclear family, but it is targeting larger family

groups by introducing economy pack bottles.



Psychographic

In this type of segmentation coke uses its packaging strategy. For high status

seekers they have come up with tin packaging. For middle class people non

returnable packages And for lower income group the glass bottles behavioral

MARKET POSITIONING

The Coca-Cola Company and Coca-Cola a range of beverages suited to different

ages, stages, lifestyles and occasions. This includes soft drinks, diet drinks, juices

and juice drinks, waters, energy drinks, sports drinks and cordials. As part of a

healthy, varied and balanced diet and an active lifestyle, all our products can be

enjoyed by the majority of people. We are committed to helping our customers

select the product that is best suited to their needs through the provision of detailed

product information supported by general advice on healthy Eating, drinking and

lifestyles.

Product Range

The total range of Coca Cola Company in India includes:

Coke.

Sprite.

Fanta.

Diet Coke.



Children and the role of our beverages:

Beverage choice, like food selection, is a role for parents and we assist them in this

through the provision of nutrition information and by making available a wide

range of products suitable for all ages, stages and occasions. Coca-Cola's

longstanding global policy ensures we do not directly market our products to

children under the age of twelve. Our brands are not advertised during children's

television times and we do not show children under 12 in advertising or

promotional materials drinking our products outside of the presence of an adult.

Our sampling events are directed to people over the age of 12.

Packaging:

Coca-Cola is committed to strict environmental guidelines, and to

ensuring our packaging has as little impact as possible on the

environment



BRANDING STRATEGIES OF COCA COLA

Brand building strategy -:

Brand development strategy of Coca Cola has been far reaching and

has managed to remain in the limelight ever since it became a favorite with

the non alcoholic drinkers. It has been noticed that brand loyalty is an important

factor in maintaining the number one position. Coca Cola has passed several tests

of brand enhancement and the company makes it a point that the products under

the banner Coca Cola have strong position in the minds of the consumers.

The brand development strategy of Coca Cola comprised redesigning of its brand

development policies and techniques to keep up with the changing mindset of its

consumers. Earlier, this brand believed in the following:

Availability:

The Coca-Cola Company increases availability of its product by, proper and timely

dispensing systems, distribution system, marketing, etc.

Affordability:

Affordability of the product includes pricing decisions, as well as resource

management, cost-effective manufacturing.

Acceptability:

Making Coca-Cola products the beverage choice for any occasion depends on a

variety of strategies to reach the target audience. The common strategies adopted to



effect acceptability were though sponsorships, promotion, youth market activities,

community programs, and other activates.

Brand Equity-:

Brand equity is difficult to measure because much of it depends on consumers'

perception and opinions of a brand. When a product has high brand equity they are

successful at retaining their current customers by keeping them satisfied with the

quality of products and service. They are also successful at attracting new

customers who have heard of the brand through successful marketing or word of

mouth.

Coca-Cola's brand equity is difficult to measure because they have extended their

brand to include numerous products. In addition to the numerous versions of Coca-

Cola worldwide that compete against other beverage brands, Coca-Cola competes

with itself. Nationally there are numerous versions / brands that are a part of the

Coca-Cola family.

In addition to competing against itself the Coca-Cola Company has saturated the

market and consumers who may dislike one product may actually enjoy a different

Coca-Cola product. However, the consumer may be unaware that the beverage is

actually in the Coca-Cola family. As a result measuring brand equity may be

difficult as consumers may be loyal and repeat customers of a brand and not know

its origin.

Coca Cola was taking its core product, Coke, and expanding the product in new

form factors and new overseas markets. The brand promise stayed the same

whether it was sold in a Coke store in New York or a roadside stand in Mongolia.



Brand identity:

The brand identity is the ‘audio-visual face’ of the brand - the cues that tell you

that you are in the right place.

The coca-cola has been since long recognised as an organisation with significant

brand identity, with over four hundred brands available in every nook

and corner of the world.

Brand image:

Brand image stands for the unique set of associations in the mind of customers

concerning what a brand stands for and the implied promises the brand makes.

There could be hardly any person around the world that hasn't heard the

name Coca Cola. Ever since it beginning as world's leading name in cold

drinks, Coca Cola has created a strong brand image irrespective of age, sex

and geographical locations. Millions of people around the world are

consuming cold drinks or soft drinks as part of their daily meal. Coca Cola,

ever since its inception has been the leader in soft drink market.

Coca-Cola uses famous personalities in its advertisement, like Aamir Khan,

Akshay Kumar etc. Its high frequency of advertisements has also helped it in

building strong brand image. Coca-Cola’s brand name is very well known all over

the world. Packaging changes have also affected sales and industry positioning, but

in general, the public has tended not to be affected by new products.



Brand loyalty:

Brand loyalty is a central construct to marketing. Keeping the consumer

satisfied, and loyal enough to frequently purchase just one brand, is more

difficult in today’s market place than ever before. But today, major brands

are experiencing heightened brand loyalty due to the growing popularity of

the brand.

Coca-Cola has been successful in maintaining its loyal customers.



TARGET MARKET OF COCA COLA

Coca Cola takes every customer as target and potential customer who is thirsty. All

age groups are being target but the most potential is the age group from 18-25 that

covers around 40% of total age segments

Age

The target market for the Coca Cola is based on age. The target audience of Coca

Cola is youngster or youth. It is a wide range for targeting. It ranges from the age

of 15-25 and also reaches to 40 plus, as they are serving this age group also. Their

targeting not based on gender but the results also show that both genders like this

product and use it.

Gender

Surprisingly Coca Cola segments Indiai Market with a percentage ratio of 58%

females and 42% male.

Life style; busy life style (face shortage of time) and mobile generation

Family; dependent on their family

Occupation; students and family oriented people

Nature; fun loving and entertainment loving

Socio economic status; upper lower class and lower class

Coke’s commercials basically based on young generations, So, the young

generation is the target market of Coke because they want to represent Coke with

the youth and energy but they also consider about the old people they take then as

a co-target market.



FACTORS EFFECTING SALES

There are so many factors, which affects the sale of coke. Here we are discussing

three major factors which effects coke.

Per capita income

Competitors

Weather

Per Capita Income:

First we will discuss about “ Per capita income”. This is major factor that affects

the sale of this soft drink. Because which every passing year budgets are becoming

very strict and tight in order to purchase things. So the disposable incomes of the

people are coming down. They spend heavily on rents, utilities, and education and

basic necessities and after that when they get extra money they think about this soft

drink .So the decreasing per capita income effects badly in selling and production

of this soft drink. And to get through with this difficulty there is need to increase

the level of per capita income of India because it is much lesser than the rest of the

countries.



Competitors:

Coke’s major competitor is “PEPSI” and there is no hesitation to say this because

every one knows that and all the other cold drinks and water, coffee, tea are the

competitors.

Weather

Weather is the third major factor in effecting the Coke’s selling. This is

underdeveloped market so the coke’s consumption in summers is 60% and in

winters is 40%.



MAJOR CUSTOMERS NEED

First of all the majority don’t care that what they are going to have. In other words,

they don’t care before drinking that whether it is “Pepsi” or “coke”. They don’t

actually differentiate between these two brands in order to their tastes.

Consumers basically drink what they get.

They believe on “WHAT COLD THEY SOLD”

Consumer’s availability in brands is basically works like:

Push availability

Pull consumer’s demand.

For this reason Coca-Cola have provided their coolers and freezers in the market.

They have maximum number of coolers and freezers in the market. They provide

this infrastructure free of cost just to provide child coke to their customer, which

they want to be purchase.

Their salesman and mechanics regularly visit all the shops where coke has its

infrastructure to check that either it is in proper condition or not, if not then they

immediately change or repair it.



GROWTH STRATEGIES OF COCA COLA:

Coca colas Internal growth stratergies tend to rely on actions such as hiring more

employees growing the customer base opening new company-owned locations or

developing new products through internal research and development. External

growth stratergies tend to focus on meeting growth objectives by establishing

relationshipsips with third parties such as stratergic-alliance partners, licensees

franchisees and co-branding allies

For example coca cola beverages enjoys 1:8:1 market share over pepsi. The

potential growth for the company globally is that coca colas system of partnering

with the bottler. Both the distributor and the bottler are coca cola companies

franchise to sell and distribute coca-cola merchandise, both mutually benefit from

the stratergic alliance. This has resulted in to 10% growth in the sale. This is an

example of internal growth for the local distributor and external growth through

the bottler. When the corporation sells a franchise, it brings money into the

company as a whole, when the local distributor uses the stratergic alliance it is

increasing its growth internally..companies should learn from this example to

effectively use both internal and external growth stratergies to improve its market

position

Other growth strategies of coca cola

(1)Focusing on customer requirements, taste current market trend,competitors

ideologies



(2) Implementing multi-segmentation strategies in their major markets to target

distinct market by consumption occasion, competitive intensity and

socioeconomic levels

(3) implementing well-planned product, packaging and pricing strategies through

different distribution channels;

(4)driving product innovation along their different product categories and

(5)achieving the full operating potential of their commercial models and processes

to drive operational efficiencies throughout our company.

(6) Introducing new lines of beverages, extending existing product lines and

effectively advertising and marketing their products

(7)developing and expanding their beverage portfolio through innovation, strategic

acquisitions and by entering into agreements to jointly acquire companies with The

Coca-Cola Company

(8) strengthening their selling capabilities and go-to-market strategies, including pre-

sale, conventional selling and hybrid routes, in order to get closer to their clients

and help them satisfy the beverage needs of consumers

Coca cola has been a fine example of executing the growth stratergies. Coca cola is

now spread more than 200 countries in the world and is touching new heights day

by day through its marketing and growth stratergies.. Also in a country like India

coco cola has been expanding its market position is more than that of pepsi and

other soft drinks in India as well as in other countries.

1) Coke has tried its hand in almost each and every aspect in the soft-drink business

and has expanded its market by introducing other drinks such as sprite maaza and

Fanta..



2) Maaza the mango drink has been marketed by coca-cola and company only in

India and Bangladesh as they had to capture the Indian market which had great

potentials and was not getting much returns by just selling the original coca-cola

product this shows a great example of growth stratergy used by coca-colaindia co.

to capture the market in India

3) Coca cola has used an important stratergy to promote growth in various markets by

launching and packaging products according to various countries For example in

India coca-cola cans are not much popular as in the western countries so coca-cola

conducted a research of which type of packaging will suit in india and have found

out keeping in mind the mentality and lifestyle of Indians the glass bottles were

manufactured and was a great success in indian conditions which expanded the

growth of the company in india compared to other soft drinks in this line of

business



MARKETING STRATEGY

They are determined not only to make great drinks, but also to contribute to communities around the world through commitments to education, health, wellness, and diversity. Consistently shaping the business decisions to improve the quality of life in the communities. It's a special thing to have billions of consumers around the world

ENTRY IN MARKET

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 that’s 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.

DISTRIBUTION OF PRODUCTS

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 IndiaSo 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 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

Company also do sponsorships with different college and school’s 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

Indirect selling

Direct Selling

In direct selling they supply their products in shops by using their own transports.

They have almost 450 vehicles to supply their bottles. In this type of selling

company have more profit margin.

Indirect Selling

They have their whole sellers and agencies to cover all area. Because it is very

difficult for them to cover all area of India by their own so they have so many

whole sellers and agencies to assure their customers for availability of coca cola

products.



FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure

these includes:

Freezers

Display racks

Free empty bottles and shells for bottles

ADVERTISEMENT

Coca cola company use different mediums

Print media

Pos material

Sports Sponsorship

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.

Sports sponsorship

Coca-Cola has a long history of sports marketing relationships, which over the years Coca-Cola was the first commercial sponsor of the Olympic games in Amsterdam, and has been an Olympics sponsor ever since. Coca-Cola has sponsored the FIFA World Cup, Coca-Cola was one of the official sponsors of the Cricket World Cup held on the Indian subcontinent. Coca Cola is also one of the associate sponsor of Delhi Daredevils in Indian Premier League.

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.



PORTER’s FIVE FORCES MODEL


Rivalry Among Competing Firms

in Industry

Threat of New Entrants

Bargaining Power of Buyers

Bargaining Power of Buyers

Bargaining Power of Suppliers


COCA COLA

TRADITIONAL COMPETITION:

Prices of Pepsi, local brands Market share Promotional actions of competition

NEW ENTRANTS:

New “look-a-like” manufacturers

SUBSTITUTE PRODUCTS:

Fashionable new drinks, milk drinks, coffee, beer,

SUPPLIERS:

Price and availability of ingredients on world market Quality speed safety, traceability, flexibility of supply chain

BUYER/CONSUMERS:

High as a result of intense competition both among branded and unbranded products.

Combined purchase power of shops, bars, supermarkets



QUESTIONNAIRE

Name:

Gender:

Age:

1. Have you ever tried the product Coca-Cola?

a) Yesb) No

2. Do you enjoy the product?

a) Yesb) Noc) It's not bad

3.Which product of coca- cola do you prefer the most?

a) Sprite b) Maazac) Thumps upd) Diet Coke

4. What brand would you say is more popular among the public?

a) Coca-Colab) Pepsic) Other

5. Do you enjoy Coca Cola’s advertisements on TV?

a) I really like themb) They good but nothing specialc) Not badd) I don't enjoy the



6. Do you think the price for a can of Coca Cola is cheap or expensive?

a) Cheapb) Slightly over pricedc) Expensive

7. If you were to see the Coca Cola logo somewhere would you recognize it?

a) Yesb) No

8. How often do you buy the product?

a) Neverb) Once/few times a yearc) Few times a monthd) Few times a weeke) Everyday

9. Where do you buy Coca-Cola products the most?

a) Super Marketsb) General storesc) Restaurants (McDonald's, Subway, KFC etc)

10. Would you prefer if coca cola enters into other beverages like tea, coffee etc

a) Yes

b) No



DATA ANALYSIS

1. Have you ever tried the product Coca-Cola? 2. Do you enjoy the product?

YES NO 0

5

10

15

20

25

30

35

40

45

40302010

yes 63%

no 13%

not bad 25%


Out of the 40people we surveyed, all of them said they had tried Coca-Cola atleast once. This explains the brand awareness of Coca-Cola.

From the analysis, it was found that majority of 62%) respondents said they enjoyed drinking Coca-Cola as against 13 %)who said they don’t like coca cloa and 25% said not bad


3. Which product of coca-cola do you prefer the most? 4. What brand would you say most popular among the public?

Coca-Cola70%

Pepsi25%

other5%


As seen in the chart, out of 40 people,

37% respondents said, in their opinion,

Mazza is more popular while 32% respondents said they preferred Sprite, thumps up with 18% and diet coke with 13% as a popular among the public

As seen in the chart, out of 40 people, 70% respondents said, in their opinion, Coca-Cola was more popular while 25% respondents said they preferred Pepsi as a popular brand. and 5% preferred other brand


5. Do you enjoy Coca Cola’s advertisements on TV? 6. Do you think the price for a can of coca cola is cheap or expensive?

I really like them

They good but not nothing special

Not bad

I don'nt like them

0 4 8 12 16

10203040

cheap

Slightly over PRICE

Expensive

0 5 10 15 20 25

7. If you were see the coca cola logo somewhere would you recognize it?

yes 78%

No 23%


The chart represents that a majority of people thought the Advertisements were good enough & they like what they see.

The chart represents that 21% of people said coke price slightly over price where 17% said it is cheap price and few people rating it is expensive

The chart represent that a majority of people thought the Advertisements were good enough & they like what they see


8. How often do you buy the product? 9. Where do you buy Coca cola products the most?

Never

Once/ few times

Few time a month

Few time a week

Everyday

0 2 4 6 8 10 12 14

Super Market

General Stores

Restaurants

0 5 10 15 20 25 30

10. Would you prefer if coca cola enters into other beverages like tea, coffee etc?

YES 53%

No 48%


As it can be seen in the figure, it was concluded that majority of the respondents bought the product quite frequently. This shows the brand loyalty of the customers towards Coca-Cola.

As seen in the above chart, customers usually preferred to buy Coca-cola in Genral Stores. The second largest option was restaurants like KFC, Mc Donalds, Sub-Way etc

This is very closest answer between yes or no, 52% are like if coca cola enter into other beverages like tea or coffee,48% said no


RECOMMENDATIONS:

After completing our project we have concluded some recommendation for the

coca cola company, which are following.

Coca Cola Company should try to emphasis more on providing their

infrastructure in the market to facilitate their customers.

Marketing team should try to increase the availability of Coke in rural areas.

Company professions must not make the false promises about the merchandising

assets with the retailers. These retailers must get the proper information and

guidance about the company policies on the merchandising assets. So that there

must be no frustration generated.

Schemes should be transparent and made clear to the retailers.

Customers can be informed about the schemes through the broachers. Broachers

can be distributed to all the retailers for the schemes that are being launched once

in a year. And for the daily schemes which get change on daily bases and which

depends on the stock availability providing details about the day's schemes/ after

a paper/ pamphlet on different products can be sticked to the delivery van signed

by the ASM or anybody authorized. So that every retailer if needed/ required can

verify himself about the daily schemes.

A proper trust and relationship building process is required with the retailers,

which need to be worked on.



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.


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