PROJECT REPORT

On
MARKETING STRATEGIES OF COCA COLA

By
Subhayan Banerjee

ACKNOWLEDGEMENTS
I am sincerely thankful to Dr. Sriparna Guha, under whose guidance I have successfully completed this project
and time spent with her had been a great learning experience. I think her constant encouragement, warm
responses and for filling every gap with valuable ideas has made this project successful. She made it possible
for me to put all my theoretical knowledge to work out on the topic: MARKETING STRATEGIES OF COCA
COLA. A mammoth project of this nature calls for intellectual nourishment, professional help and
encouragement from many people. We are highly thankful to all of them for their help and encouragement. We
wish to acknowledge our great debt to all of them whose ideas and contribution influenced me to complete the
project work.

TABLE OF CONTENT

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12.

TITLE PAGE
ACKNOWLEDGEMENT
INTRODUCTION
INDUSTRY
COMPANY PROFILE
PORTER'S FIVE FORCES
PEST ANALYSIS
RESEARCH OBJECTIVES & METHODOLOGY
REVIEW OF LITERATURE
PRIMARY FINDINGS & ANALYSIS
CONCLUSION & RECOMMENDATION
BIBLIOGRAPHY

INTRODUCTION
This project is focused on studying the various marketing strategies of Coca-Cola and the scenario of Indian
soft drink industry in the 1990s.
Coca-Cola Co., the global soft drink industry leader controlled Indian soft drink industry till 1977. Then Janta
Party beats the Congress Party and the Central Government was changed. This change brought problems for
Coca-Cola principle bottler, who was a big supporter of Gandhi Family. Now Janta Party government
demanded that Coca-Cola should transfer its syrup formula to an India subsidiary (Chakravarty, 43). Because of
this Coca-Cola backed and withdrew from the country. In the mean time, Indias two target soft drink producers
have gotten rich. Who were controlling 80% of the Indian soft drink industry.
In 1993, the coco-Cola company came back to India. But the scenario of Indian soft drink industry had been
changed from 1977 to 1993. The competition in the soft drink industry had become very tough. The major
competitors at that time were Pepsi and Parle. Parles best known brands include ThumsUp, Limca, Citra and
others were Gold Spot and Maaza. At that time Parle had a market share of 53% and Pepsi had a market share
of 20%.
Now Coca-Cola had to make some strategies to survive in this tough competition. For this Coca-Cola decided
to take over Parle, so that the company can take the advantage of Parles network. This decision was proved
very beneficial for Coke as it had ready access to over 2,00,000 retailer outlets and 60 bottlers of Parles
network.
The marketing strategies which were made by Coca-Cola Company to win the Cola war in 1990s had been very
successful as Coca-Cola Company had a total market share of 48.3% in 1998.
So, the Indian soft drink industry saw a dramatic change in the decade of 1990s. All the companies were trying
to win the battle by making good marketing strategies.
Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994) to add muscle to its
infrastructure in bottling and distribution. This is apart from money that companys franchised bottles spend in
upgrading their plants all this has contributed to substantial gains in the market. In Colas, Pepsi is already
market leader and in certain cities like Banaras, Pepsi outlets are on one side & all the other Colas put together
on the other. While Coke executive scruff at Pepsis claims as well as targets, industry observers are of the view
that Pepsi has definitely stolen a lot from its competitor Coke.
Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This image turnaround is no
small achievements, considering that since it was established in 1989, taking the hardship route prior to
liberalization and weighed down by export commitments.
Now, at present as there are three major players Coke, Pepsi and Cadbury and there is stiff competition between
first two, both Pepsi and Coke have started, sponsoring local events and staging frequent consumer promotion
campaigns. As the mega event of this century has started, and the marketers are using this event world cup
football, cricket events and many more other events.
As orange drinks are the smallest of non-Cola categories that is Rs. 1100 crore markets with 10% market share
and Cola heaving 50% is followed by Lemon segment with 25%.

The success of soft drink industry depends upon 4 major factors viz.
Availability
Visibility
Cooling
Range
AVAILABILITY
Availability means the presence of a particular brand at any outlet. If a product is now available at any outlet
and the competitor brand is available, the consumer will go for the outlet because generally the consumption of
any soft drink is an impulse decision and not predetermined one.
VISIBILITY
Visibility is the presence felt, if any outlet has a particular brand of soft drink say-Pepsi Cola and this brand is
not displayed in the outlet, then its availability is of no use. The soft drink must be shown off properly and
attractively so as to catch the attention of the consumer immediately Pepsi achieves visibility by providing glow
signboards, hoarding, calendars etc. to the outlets. It also includes various stands to display Pepsi and other
flavors of the company.
COOLING
As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up the sales. The brand,
which is available chilled, gets more sale than the one which is not, even if it is more preferred one.
RANGE
This is the last but not the least factor, which affects the sale of the products of a particular company.

COMPANY PROFILE
Coca-Cola Enterprises, established in 1886, is a young company by the standards of the Coca-Cola system. Yet
each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this
Company.
The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began
to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two
Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle
and sell Coca-Cola for most of the United States from The Coca-Cola Company.
The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when
bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its companyowned 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 part of the merger, the senior management team of Johnston assumed responsibility for managing the
Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and
total revenues were $5 billion.
The Coca-Cola Company is the worlds largest beverage company. They operate in more than 200 countries &
markets more than 2800 beverage products. Headquartered at Atlanta, Georgia, they employ approximately
90500 employees all over the world. It is often referred to simply as Coke or (in European and American
countries) as Cola or Pop.

MISSION, VISION AND VALUES

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we
must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to
prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It
creates a long-term destination for our business and provides us with a "Road map" for winning together with
our bottling partners.
Our Mission
Our Road map starts with our mission, which is enduring. It declares our purpose as a Company and serves as
the standard against which we weigh our actions and decisions.
1. To refresh the world.
2. To inspire moments of optimism and happiness.

3. To create value and make a difference.

Our Vision
Our vision serves as the framework for our Road map and guides every aspect of our business by describing
what we need to accomplish in order to continue achieving sustainable, quality growth.
1. People: Be a great place to work where people are inspired to be the best they can be.
2. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy peoples
desires and needs.
3. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.
4. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable
communities.
5. Profit: Maximize long-term return to share owners while being mindful of our overall responsibilities.
6. Productivity: Be a highly effective, lean and fast-moving organization.
Our Winning Culture
Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a
reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.
1. Leadership: The courage to shape a better future.
2. Collaboration: Leverage collective genius.
3. Integrity: Be real.
4. Accountability: If it is to be, its up to me.
5. Passion: Committed in heart and mind.
6. Diversity: As inclusive as our brands.
7. Quality: What we do, we do well.
Focus on the Market
1. Focus on needs of our consumers, customers and franchise partners.
2. Get out into the market and listen, observe and learn.
3. Possess a world view.
4. Focus on execution in the marketplace every day.
5. Be insatiably curious.
Work Smart
1. Act with urgency.
2. Remain responsive to change.
3. Have the courage to change course when needed.
4. Remain constructively discontent.
5. Work efficiently.
Act Like Owners
1. Be accountable for our actions and in actions.
2. Steward system assets and focus on building value.
3. Reward our people for taking risks and finding better ways to solve problems.
4. Learn from our outcomes -- what worked and what didnt.
Be the Brand
1. Inspire creativity, passion, optimism and fun.

COCA-COLA WORLDWIDE (BACKGROUND)

The Profile
The Coca-Cola Company is the global Soft drink industry leader, with world headquarters in Atlanta, Georgia.
The company and its subsidiaries employ nearly 30,000 people around the world Syrups, concentrates and
beverages bases for Coca-Cola, the companys flagship brand, & over 160 other Company Soft Drink brands
are manufactured and Sold by the Coca Cold Company and its Subsidiaries in nearly 200 countries around the
world. In fact approximately 70% of company volume and 80% of company profit come from outside the
United States.
By contract with the Coca-Cola Company on its local subsidiaries, local businesses are authorized to bottle and
sell company soft drinks within certain territorial boundaries and under conditions that ensure the highest
standards of quality and uniformity.
The Coca-Cola takes pride in being a worldwide business that is always local. Bottling and distribution
operations are, with some exception, locally owned and operated by independent business people who are
native to the nations in which they are located.
The Coca-Cola company stock, with ticker symbol KO2 is listed and traded in the United States on the New
York stock exchange, common stock also is traded on the on the Boston, Chicago, Pacific an Philadelphia
Exchanges Outside the United States, Company common stock is listed and traded on common and Swiss
exchanges.
The Company operating management structure consists of five geographic groups:
1. The North America Group Comprises the United States and Canada.
2. The Latin American group includes the Companys operations across Central and South American from
Mexico to Argentina.
3. The Companys most populated operating group, the Middle and Far East group, and ranges from the
Middle East to India, China, Japan and Australia.
4. The greater Europe group stretches from Greenland to Russias far last, including some of the most
established markets in Western Europe and the rapidly growing nations of Eastern and Central Europe.
5. The Africa group includes the Companys business in 50 countries in Sub Sahara.

COKE IN INDIA
Coke gained an early advantage over Pepsi since it took over Parle in 1994. Thus it had ready access to over
2,00,000 retailer outlets and 60 bottlers. Thus Coke had greater than Pepsi because it had ready access to the
Parle network. For example in 1994 Pepsi had 20 bottlers to serve the entire country while Coke had Parles 60
bottlers. In an important market like Delhi Pepsi had just one bottler while Coke had four. On the other hand
Pepsi had taken over the Dukes Mangola of Mumbai.
In 1993, Pepsi Foods Ltd. had control over the Rs. 1,100 - Crore Indian Soft Drinks market. At that time, the
soft drinks trycoon Ramesh Chauhan, was heading the Parle group and at that time was deciding to explore the
possibility of selling his best rolling brands to Coke, rather than to Pepsi. Pepsi had entered the market 3 years
before Coke did.

Before the Coke-Parle tie-up in '93- Ramesh Chauhan had 2 options before him- (1) to stick around, fight it out
again and hopefully, continue with his number one position. (2) to sell out to Coca-Cola for a good return. This
risk of losing out to one of the multinationals, eventually, seemed to be throwing up the second alternative.
Ramesh Chauhan told business world (India's most popular business magazine) that "it is better to seek a
compromise than to fight a lone battle". But he was wisely simultaneously taking steps to safeguard his market
share. In a few months, Parle's products will be launched in 250 ml instead the current 200 ml. The indications
are that the company will hold the price line. Incidentally, both Pepsi and Coke (if it finally gets in) will cost
more than local brands because of the 300% duly on the imported ingredients. However, this scenario was
taking place pre-liberalization period and hence implied a very high duty on imported items.
Entry of Pepsi and Coke in India or their proposals were at that time being opposed because of the impact of
first - strike on the minds of consumers. If Coca-Cola is allowed an easy and quick entry through a window
established by the government, there can be no justification for denying similar access to Pepsi Co.
Basically what was wrong at that time with the Coke proposal was that while the Pepsi deal could go through
under the camouflage of horticultures and agriculture development as their proposal stated, a pure soft drinks
project was not so politically palatable (as it would greatly hamper the indigenous industry).
Coke had plans, to invest $ 20 million in India and Pepsi was going to pump in Rs. 300 crore more. Ramesh
Chauhan greatest compulsion, to 90 in for the 2nd option was that many of his biggest bottlers were preparing
to desert him for Coke, since the bottlers accounted for nearly one-third of Parle's sales. Parle's biggest bottles
in the Easter region. Goenka, accounted for 80% market share in Calcutta, felt that the future lay with CocaCola, no Indian company had the financial muscle to take on Coke.
Also, there was the most convincing factor for the tie-up, that Parle's Position in the Indian soft drinks market
and Coca-Cola's marketing strengths and experience would make an unbeatable combination. At that time
according to the worlds most popular and well known magazine, Fortune, had rated Coke as the world's best
brand. Even Coke would greatly benefit from the tie-up, as Coke with Parles wide spread bottling and
distribution network, which was spread over more than a thousand towns and cities and the gradual withdraw of
Parle brand would ensure Coke would be the king. Parle's best known brands include Thums Up, Limca, Citra
and others were GOLD SPOT and Maaza.
The biggest advantage to Parle from the tie-up would be an instant gain of $ 40 million, which could be used
profitably in other ventures.
According to a report the deal was that, Parle Exports had transferred the rights of all its reputed soft drinks
brands to Coca-Cola Company, USA. In short, Coca-Cola Company became the exclusive owner of Thums Up,
Limca, Gold Spot, Citra and Maaza and could therefore; withdraw them from the market whenever it would
want to.
Under the agreement, the existing bottlers of Parle Exports would continue to produce Parle brands under the
licence from the Coca-Cola Company. The U.S. Multinational proposed to introduce its international brands
-Coke, Fanta and Sprite at an appropriate time. The Parle bottlers will be bottling these Coco - Cola brands also.
The exact nature of Parle, Coca-Cola tie-up is given below:
So, Ramesh Chauhan, sold his soft drink brands of the U.S. Multinatinal for ($ 40 million) and is presently a
major Coke bottler. Delhi - based Parle Chairman gave up his ownership of his soft drinks brand (Thums Up,
Limca, Citra and Gold Spot) and was awarded the bottling franchisee for Delhi, Bombay, Surat and
Ahmedabad. Coke depends on the 54 bottling plants which it was inherited from the Parle by out.
So, logically all brands of Parle as well as Coca-Cola will be marketed together. The only problem being that
Parle bottlers would not be able to meet the peculiar quality requirements of Coke.

ASSUMPTIONS

Improvements in perceived quality in turn lead to high market share and market leaders spend to build their
franchise.
Companies spend a larger share of their sales income on advertising and tend to be much more profitable
than companies that spend less.
Brands that spend a much larger than average share of their sales on advertising earn an average return on
investment of 32% while brands that advertise much less than their competitors average only 17%.
Increases in advertising expenditure are closely correlated with gains in master share (even after adjusting
for the effects of other factors).
Sales promotions like price-off, etc. has no significant correlation with market share changes (only its effect
on consumer behavior is observed).
To some extent companies with high, quality simply have more to say in their advertising, so they are likely
to spend more money saying it.
Market-perceived quality is a more important measure of competitiveness than market share for 2 reasons :
1. Most market leaders had to develop quality leadership to achieve their large share position superior
quality is the base upon which market leadership is usually built.
2. Generally according to data, businesses that begin with a large share of the market tend to lose share. By
contrast, those that begin with superior quality tend to hold or gain share.

Therefore, market share is often a lagging indicator of a company's performance; quality is the clear key to
success.
Pepsi is a perfect example; since it came to India in 1989 with a market share of 0% it now in 1998 enjoys a
share of 45.2% in the market.
But in case of soft drink, the 2 Cola giants Pepsi and Coke cannot to a great extent differentiate on their brands
(but of course in terms of taste and fizz), a lot has to be spent on ads, packaging and promotion, i.e., making it
more easily available.
It must be noted that the brand also has to work in different ways from market to market. A constant check on,
brand management techniques, on the promotion of the brand, in a consistent and robust manner, is essential for
the brands future. One point where Coke scores over Pepsi has been in production and distribution system
internationally and nationally (because of access to Parle's distribution network) which ensures the product
reaches the consumers in perfect condition.
The advertising message that is conveyed to the people in the advertising slogan "Always the real thing"
(1993), is a credible statement about the brand's virtues. What reinforces this conviction amongst, consumers,
apart from the reassurance provided by the consistent quality of the Coca Cola product, is that competitive
brands all seek to emulate Coca Cola. There is very little attempt on their part to create a distinctive positioning
and personality for their brands. A vast complex network of production, distribution and marketing has kept the
brand in front.
Coca Cola has entered new markets and also developing market economics (like India) with much-needed jobs.
Coke attributes its success to bottlers, the Coca Cola system itself, i.e., its executive committees, employees,
BOD, company presidents but above all from the consumer.
Coke's red color catches attention easily and also the Diet Coke which it introduced was taking the Cake, as
Pepsi has not come out with this in India.
Ever since Coke's entry in India in 1993, Coke made a comeback (after quitting in 1977), in October 24 in
Agra, the city was flooded by trucks, there wheelers, tricycle cards-all with huge red Coke-emblazoned
umbrellas. Retailers were displaying their Coke bottles in distinctive racks, also with specially-designed
iceboxes to keep Coke bottles cold. This was one big jolt to Pepsi.

WHAT IS A MARKETING MIX?

It is a set of controllable tactical marketing tools - product, price, place & promotion - that the firm blends to
produce the response it wants in the target market.
Effective marketing would be blending the marketing mix elements into a coordinated program designed to
achieve the companys marketing objective by delivering value to consumers.
Cola - Cola has always worked upon their marketing mix tools since its entry into India and Cokes objective
has been to strengthen their brand in important segments of the market and to gain a competitive edge over
Pepsi brands.
MARKETING MIX OF COKE
a) PRODUCT
Coke was launched in India in Agra, October 24, in '93', soon after its traditional all Indian launch of its Cola. at
the sparking new bottling plants at Hathra, near Agra. Coke was back with a bang after its exit in 1977.
Coke already owns more brands than it will over need, since it has bought out Ramesh Chauhan. Coke just
needs to juggle these brands around dextrously to meet its objectives, to ensure that Pepsi does not gain market
share in the process.
For if a vacuum develops, it is Pepsi which has the brand muscle and the distribution network to grab customers
today-not Coke. But Coke could not reduce its marketing support for Thums Up until its own Cola would hit
the four major metros (Delhi. Bombay, Calcutta and Madras) Therefore, Coke had to give its existing levels of
support for Parle's brands and would push Thums Up and Limca.
In, 1998 Coke's product line includes Coca-Cola, Thums Up, Fanta, Gold Spot, Maaza, Citra, Sprite, Bisleri
Club Soda and Diet Coke
b) PACKAGING
Coca-Cola India Limited (CCIL) has bottled its Cola drink in different sizes and different packaging i.e., 200
ml bottle, 300 ml. Bottle, 330 ml. Cans, 500 ml. Bottle fountain Pepsi, and bottles of 1 and 1.5 liter
c) PRODUCT POSITIONING
One important thing must be noticed that Thums Up is a strong brand in western and southern India, while
Coca Cola is strong in Northern and Eastern India. With volumes of Thums Up being low in the capital, there
are likely chances of Coca Cola slashing the prices of Thums Up to Rs. 5 and continue to sell Coca Cola at the
same rate. Analysts feel that this strategy may help Coke since it has 2 Cola brands in comparison to Pepsi
which has just one.
Thums Up accounts for 40% of Coca Cola Companys turn over, followed by Coca Cola which has a 23% share
and Limca which accounts for 17% of the turn over of the company. (Thums up being the local drink, its share
in the market is intact, forcing the company to service the brand, as it did last year Mr. Donald short CEO, Coca
Cola India, said that, " we will be absolutely comfortable if Thums Up is No. 1 brand for us in India in the year
2005. We will sell whatever consumer wants us to". Coca Cola India has positioned Thums up as a beverage
associated with adventure because of its strong taste and also making it compete with Pepsi as even Pepsi is
associated with adventure, youth.

PORTER'S FIVE FORCES MODEL OF COCA COLA

BARGAINING POWER OF SUPPLIERS

Most of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavor, color,
caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing
for this reason; the suppliers in this industry are weak.
Bargaining Power of Buyers
Buyers in this industry have the bargaining power, because main source of the revenue and market share in
beverage and food industry are fast food fountain, convenience stores food stores vending etc. The profit
margins in each of these segments noticeably demonstrate the buyer power and how special buyers pay diverse
prices based on their power to bargain.
Threat of New Entrant
There are many factors that make it hard for industry some of important factors are brand expense, bottling
network, retail distribution fear chain. New player to enter the beverage image and loyalty, advertising of
retaliation and global supply
Brand Image / Loyalty
Pepsi and Coke continuously focusing on increasing their biggest beverage and food products, they has built
some of the globes strongest brands that are loved by consumers throughout the world. Innovative Marketing
has leveraged their worldwide brand-building strength to attach with consumers in significant ways and impel
the growth globally. These all campaign results in higher amount of loyal customers and strong brand equity
throughout the world. In 2011, Coca-Cola was declared the worlds most valuable brand according to
Interbrands best global brand. This makes it impossible for new entrance to enter the beverage industry easily.
Advertising Spend
Cock and Pepsi has very effective advertising campaign, their advertising also represent the cultures of different
countries. They also sponsor different games and teams and also featured in countlesstelevision programs and
films. The marketing and advertising expense was approximately $ 15 billion. This makes landscape very
harder for new players to succeed.
Bottling Network
Pepsi and Coca Cola have live and exclusive contracts with bottlers that have privileges in all over the world.
These franchise agreements or contracts forbid bottlers from keeping competitors brands. Coke has the
world's largest beverage distribution network; consuming in more than 200 countries enjoys the Cokes
beverages at an average of nearly 1.6 billion servings a day. Coca-Cola is sold in restaurants, vending machine
and stores in more than 200 countries. PepsiCo has adopted the globes most powerful go-to-market systems,
serving more than 10 million outlets a week by operating greater than 100,000 different routes, and producing
more than $300 million in retail sales per day. They have also purchased some of the bottlers, this makes
difficult for new players to get bottler contracts or to build their bottling plants.
Retail Distribution
Coke and Pepsi offers 16 to 21 percent margins to retailers for the space they present. These margins are
substantial for retailers and this makes it very hard for the new player to persuade retailers to carry their
products.

Fear of Retaliation

It is very difficult for new player to enter in this industry because; they will be highly retaliating by local
players in local markets and in global scenario they have to face the duopoly of Coke and Pepsi. This ultimately
could result in price war which affects the new player.
Global Supply Chain
Cock Bill & Melinda Gates Foundation and nonprofit TechnoServe initiated a partnership to facilitate more
than 50,000 small fruit farmers in Kenya Uganda to increase their productivity and double their incomes by
2014. Coke has significant opportunities within global supply chain to encourage and develop more sustainable
practices to benefit consumers, customers and suppliers. While; it is still in the premature stages of exploring
these opportunities and dedicated to the economic vitality and health of the farming communities our supply
chain engages. Pepsi promotes and support sustainable agriculture not only because it makes good business
sense, it purchase million tons of potatoes and fruits.
Threat of Substitute Products
Large numbers of substitutes are available in the market such as water, tea, juices coffee etc. But firms counter
them with innovative marketing and massive advertising which build growth for their brands by highlighting
their benefits. Players also differentiate themselves by well-known global trade marks, brand equity and
availability of the products which most of the substitute products can not contest. To protect themselves from
competition players in soft drink industry offer Diversify products such as such as Pepsi offers soft drinks
(Pepsi, Slice, Mountain Dew), beverages (Tropicana Juices, Dole Juices, Lipton tea, Aquafina bottled water,
Sport drinks, Tropicana Juices), Snacks (Rold Gold pretzels and Frito-Lay). Coke also offers most diversified
range of products such as Cola-Cola Cherry, Coca-Cola Vanilla, Diet Coke, Diet Coke Caffeine-Free, CaffeineFree Coca-Cola and range of lime or coffee and lemon.
Competitive Rivalry within an Industry
Beverage industry competition can be classified as a Duopoly with Pepsi and Coca Cola. The market share of
other competitors is too low to encourage any price wars. Cola-Cola gets competitive advantage through the
well-known global trade marks by achieving the premium prices. It means Cola-Cola have something that their
competitors do not have. While Pepsi has leveraged its worldwide brand-building strength to attach with
consumers in significant ways and impel the growth globally.

PEST ANALYSIS OF COCA COLA COMPANY

As the leading beverages company in the world, Coca Cola almost monopolizes the entire carbonated beverages
segment. Beside it, Coca Cola also maintain their reputation as the leading company in the world using PEST
Analysis so that Coca Cola can examine the macro-environment of Coca Colas operations.
Political
When Coca Cola had decided to enter a country to distribute the products, Coca Cola was monitoring the
policies and regulations of each country. For the example, when entering Moslems country such as Indonesia or
Malaysia, Coca Cola followed the regulation by adding Halal stamp in each Coca Colas products. In this
case, Coca Cola has no political issues in this matter.
Economic
Coca Cola also has low growth in the market for carbonated beverages (North America). The market growth
was 1% in 2004. For stimulating the growth, Coca Cola had spent high budget of advertisement to endorse the
customers.
Social
Nowadays, customers tend to change their lifestyle. Customers more aware about health consciousness by

reducing in drinking carbonated beverages to prevent diabetes or other diseases. As a result, Coca Colas
demand for carbonated beverages has decreased and the revenues also decreased. Thus, Coca Cola diversify the
products by adding production lines in tea (Nestea), juices (Minute Maid), mineral water (Dasani and Ades),
and sport drinks (Powerade), and others.
Technological
Because of the developing technology, Coca Cola has advanced technology in producing the products. Then,
Coca Cola made innovations by giving flavors to the Coke, such as Cherry Coke, Diet Coke, Coca Cola Zero,
Coke with Lime, and others. But, the customers still prefer the original taste of traditional Coke; it can be seen
by the high demands in traditional Coke.

RESEARCH OBJECTIVES & METHODOLOGY

RESEARCH OBJECTIVE
1.
2.
3.
4.

To study the marketing strategies adopted by Coca-Cola.

To study the advertising effectiveness Coca-Cola on customer.
To analyze the awareness of consumer regarding Coca Cola.
To help the company for further changes in the quality, pricing, and policies.

Research design
The Research available is descriptive so as to describe the complete qualities of juices available in market.
Sources of Data collection
To do a research always we use two sources of data collection. Primary and secondary.
Primary Source: It is the source which collects the primary data through Questionnaire and record the raw data
for further analysis, Primary source is used by the face-to-face survey with the customers of the company.
Secondary Source: Secondary source is the internet, magazines, and old data files of the research.

LITERATURE REVIEW
MARKETING MIX OF COCA-COLA
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 productservice 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. We 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
flavours 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.
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.
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 manufacturersponsored 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 companys 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.

PROMOTION STRATEGIES
GETTING SHELVES
They get 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 schools cafes and sponsors their sports events and
other extra curriculum activities for getting market share.
UTC SCHEME
UTC mean under the crown scheme, Coca Cola often do this type of scheme and they offer very handy prizes in
it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This scheme is very much popular among
children.
PRINT MEDIA
They often use print media for advertisement. They have a separate department for print media.
POS Material
Pos material mean point of sale material this includes: posters and stickers display in the stores and in different
areas.
TV COMMERCIALS
As everybody know that TV is a most common entertaining medium so TV commercials is one of the most
attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different
channels.
BILLBOARDS AND HOLDINGS
Coca Cola is very much conscious about their billboards and holdings. They have so many sites in different
locations for their billboards.

SWOT ANALYSIS
SWOT Analysis of Soft Drink Industry in relation to Coke
Strengths
Carbonated soft drink growth 10-15%.
Estimated PCC to increase to 6-8 bottles.

Weaknesses

Weak infrastructure (esp. Cooling).

Small retailers, less shelf space.
Heavy excise duty (40%), recently have come down a little.
Cans have to be imported at high duty rates.
Problems of empty bottles.

Opportunities

Low PCC as compared to neighboring countries.

Growing rural market internecine competition.
Rising disposable income.
Changing consumer trends due to satellite TV.

Threats
Political risks.
Coke and Pepsi indulging in.

CONCLUSION AND RECOMMENDATIONS

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.
RECOMMENDATIONS
After completing our project I 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.
According to the survey, conducted by the international firm Pakistani people like little bit sweeter Cola
drink. So for this Coca Cola company should produce their product according to the local demand.
Marketing team should try to increase the availability of Coke in rural areas.
They should also focus the old people.

BIBLIOGRAPHY
Bibliography refers to the sources through which information has been retrieved in my project development:
Books & Magazines:

Marketing Management by (Philip Kotler).

Economic Times.
Annual Report of Coca-Cola Company.

Websites:
www.google.com
www.coca-Colaindia.com
www.altavista.com