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MARKET SHARE ANALYSIS

EXECUTIVE SUMMARY

A study of inventory management at COCA-COLA INDIA LIMITED is


undertaken in order to know the MARKET SHARE ANALYSIS and position of the
company in the market and to know the strengths and weaknesses and to assess the
profitability of the company.

Introduction

Introduction gives the detailed information about the company and the
background of the company.

Statement of the problem

As per the survey conducted we can conclude that the market share of Coca-Cola is
approximately 90%in MURGESHPALYA.

The main objectives of the study are:-

 To study the historical background of COCA-COLA INDIA LIMITED.


 To study the competitive environment.
 To determine critical evaluation of the market.
 To equip myself better in the area of market share analysis.

Scope of the study

• At COCA-COLA INDIA LIMITED plant this study was conducted to find the
facts to increase the market share.

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Research methodology

Research methodology gives the information or the type of research, the survey,
the procedure and the techniques of data gathering sample size and technique used, it also
shows the sample description and profile, scope and limitations of the study

Summary of findings

1. We can see that most of sales contribution is from glass bottles rather than pet
bottles and customers are becoming eco friendly as they know that plastic bottles
are harmful to them.

2. It is seen that Sprite almost contributed to 50% of the sales of all other Coca-Cola
products like Thumbs up, Coca-Cola, Fanta and Maaza.

3. It is seen that Newspapers and T.V. contribute to maximum awareness in the


minds of customers.

Conclusion and suggestions

1. Extra credit facilities to their customers who pay their bills on a regular basis.

2. No wonder Coca-Cola is making more sales than Pepsi but Pepsi is making
profits from their food products like Lays and other eatables Therefore, Coca-
Cola should also go into eatables in order to maximize their profits.

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GENERAL INTRODUCTION

The soft-drink battleground has now turned towards new overseas markets. While
once the United States, Australia, Japan, and Western Europe were the dominant soft-
drink markets, the growth has slowed down dramatically, but they are still important
markets for Coca-Cola and Pepsi. However, Eastern Europe, Mexico, China, Saudi
Arabia, and India have become the new "hot spots." Both Coca-Cola and Pepsi are
forming joint bottling ventures in these nations and in other areas where they see growth
potential.

International marketing can be very complex. Many issues have to be resolved


before a company can even consider entering uncharted foreign waters. This becomes
very evident as one begins to study the international cola wars. The domestic cola war
between Coca-Cola and Pepsi is still raging. However, the two soft-drink giants also
recognize opportunities for growth in both Coca-Cola, which sold 10 billion cases of
soft-drinks in 1992, and Pepsi now find themselves asking, "Where will sales of the next
10 billion cases come from?" The answer lies in the developing world, where income
levels and appetites for western products are at an all time high.

Often, the company that gets into a foreign market first usually dominates that
country's market. Coca-Cola patriarch Robert Woodruff realized these 50 years ago and
unleashed a brilliant ploy to make Coca-Cola the early bird in many of the major foreign
markets. At the height of World War II, Woodruff proclaimed that wherever American
boys were fighting, they'd be able to get a Coca-Cola. By the time Pepsi tried to make its
first international pitch in the 50s, Coca-Cola had already established its brand name and
a powerful distribution network. In the intervening 40 years, many new markets have
emerged. In order to profit from these markets, both Coca-Cola and Pepsi need to find
ways to cut through all of the red tape that initially prevents them from conducting

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business in these markets. This paper seeks to examine these markets and the
opportunities and roadblocks that lie within each.

Both these companies Coca-Cola and Pepsi are of great caliber. Infact, they are the
companies that are ruling the market. Coca-Cola and Pepsi have always competed against
each other for a bigger market share. They have come up with a variety of campaigns to
get a one-up over each other. They have gone in for blind taste test to advertising
campaigns to even garnering customer support through brand ambassadors.

But these companies have faced different difficulties in different parts of the world.
But they have overcomed these difficulties and have managed to reach top positions. The
difficulties have included political campaigns against them. They include the local
competitors in a country against them. This also includes the culture of the country which
decides things like the people’s tastes and preferences. They have overcome all these
difficulties to sell their products in the markets.

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INDUSTRY PROFILE
`

The global market consists of two major players; PEPSI and COCO-COLA. Both
have universal brand names. They are available in almost 200 countries Pepsi products
are served in more than 160 countries, with the emerging middleclass and higher
purchasing power the expenditure on soft drinks is bound to increase considerably; this is
possible only through intense marketing, which has led to cut-throat competition and the
famous cola wars.

Asian youth are among the world’s fastest growing consumer segment today.
China, Indonesia and India make up three of the world’s 4 biggest soft drink markets.
The fortune 500 majors have duly acknowledged the potential and consumption of
beverages, in India, in particular.

The study growth and increasing sales show a highly rewarding future for the soft
drinks business in India. Not only have the sales increased but the bottle sizes have also
increased from 250 ml to 300 ml. of the total volume, almost 50% is contributed by the
colas alone, which are the most widely consumed and promoted drinks internationally.
In the cola category, Pepsi is seen as the most aggressive of the lot, followed by Thumps
Up from the COCO-COLA portfolio and thirdly COCO-COLA, itself.

Other highlights of the Indian soft drink market are as under:

India is a young country with 20.4% of its population lying in the age group of
15-24 years, which is where the potential for soft drinks lie.

While the per capita consumption of soft drinks in the United States is about 770
servings and 62 servings outside the United States, the per capita consumption in India is

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a ridiculously low figure of 3 servings per year, which is lower than the average
consumption in Pakistan and Bangladesh.

For a population of over 1200 million, India has only 3.15 lakh retailers who
stock soft drinks whereas a country like Philippines, with a population 60 million, has 4.5
lakh retail outlets.

It takes an Indian 1.5 hour of work to be able to buy a soft drink while in other
developed countries it takes only 5 minutes.

In India consumers pay at least 13 times more than an American for a carbonated
soft drink. Soft drink sales have great seasonal fluctuations in India with sales peaking
in summers and plummeting in the other seasons. However, soft drink giants are
aggressively aiming to make it an anytime drink.

Even today, consumption of soft drinks in India is mostly restricted to special


occasions. Consumption of soft drinks is still considered a luxury in India.

The soft drinks industry in India faces many challenges. The soft drinks bottling
operation is a capital intensive business, with investment at four levels i.e. cost of plant
and equipment, investment in bottles and crates, transportation and cooling structure at
retail outlets? In India, the soft drink industry is suffering greatly due to lack of capacity
and infrastructure. Additionally, most of the retailers sell a drink for anywhere for Rs.12,
thus making it expensive for the customers, as compared to their purchasing power. Most
of the people in India are below the poverty line.

But the soft drink market in India has been undergoing tremendous changes since
the liberalization of the economy. The industry is growing at a rate of 20% per annum.
The arrival of the big giants has caused a phenomenal change in the industry. The face of
the soft drink industry is expected to thoroughly change in the coming years.

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Over the years Pepsi-Cola has gone through a series of Presidents and CEOs.
These men include Herbert Barnet, Donald M. Kendall, Vic Bonomo, John Sculley,
Roger Enrico, and Craig Weatherup with each of these men helping Pepsi grow by leaps
and bounds. The rest of this profile could go into the contributions of each of these men.

Pepsi-Cola has achieved huge success as a soft drink. However, this was a two
sided coin in that Pepsi-Cola was also seen as a cheap soda. Pepsi had to change this
perception, and to do so they switched their marketing strategy. Starting in 1958 Pepsi
began to lose its reputation as a bargain soda, and instead started becoming a soda that
was preferred by fashionable young adults. By the mid 1960's the United States was full
of teenagers that had been born shortly after World War II. They were the "Baby
Boomers" and they were also the "Pepsi Generation." Pepsi also continued to keep its
product from becoming old fashioned by occasionally making small changes in
packaging throughout the years. They updated their logo, they replaced the straight sided
bottle with the "Swirl" bottle, and also moved from the 12 ounce bottle to a 16 ounce
bottle.

Pepsi also started providing other lines of products. They introduced Teem (a
lemon/lime based soda). They purchased and went national with Mountain Dew, and also
introduced Slice, and started offering a diet version of Pepsi as well. However, one of the
biggest changes to occur to Pepsi-Cola happened in 1965 when they merged with Frito-
Lay and became PepsiCo, Incorporated.

In 1975 Pepsi introduced the Pepsi Challenge. This was a marketing campaign
where they set up a blind tasting between their product and that of their arch-rival Coca-
Cola. During these blind taste tests, majority of the participants picked Pepsi as the better
tasting of the two soft drinks. Over the next several years Pepsi went on to expand this
"Pepsi Challenge" throughout the nation. They also started designing television
commercials that reported the results of these tests to the public at large. Pepsi also
continued to invest heavily in advertising and started using celebrities such as

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Michael Jackson, Tina Turner, Michael J. Fox, Joe Montana, Dan Marino, Vice
Presidential contender Gealdine Ferraro, and many others to help them market to the

"New Generation." It wasn't long before Pepsi became the number one soft drink
sold in American supermarkets and they were closing in on becoming the most popular
soft drink sold in the nation.

The Pepsi Challenge and the Pepsi advertising blitz were clearly having an effect
with more and more people switching from Coca-Cola to Pepsi. As a result Coca-Cola
made the decision to change their formula to taste more like Pepsi. Of course, Pepsi took
advantage of this situation and really had a field day making fun of Coca-Cola. The
president of Pepsi, Roger Enrico, gave his employees a day off by declaring a holiday to
celebrate the day they won the cola wars. Television commercials, full page ads in major
newspapers, and lots of comedians all on their own, took their shots as well. There was
such uproar to this formula change that within a couple of months Coca-Cola had brought
back the original Coca-Cola. After switching back to their original formula, Coca-Cola
and Pepsi continued to battle it out for supremacy in the cola wars. Pepsi continued to
make some great commercials. They featured famous personalities such as Ray Charles,
Shaquille O'Neal and others.

Pepsi also moved into other beverage categories by working out deals with
Lipton, Ocean Spray, and Starbucks. Pepsi has continued to expand globally throughout
the years until practically every nation on the face of the earth either has a bottling plant
of their own, or can at least buy a bottle of Pepsi. By 1993, Pepsi-Cola profits had
surpassed $1 billion, and in 1998 Pepsi celebrated its 100th anniversary.

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HISTORY OF SOFT DRINKS

Soft drinks can trace their history back to the mineral water found in natural
springs. Bathing in natural springs has long been considered a healthy thing to do and
mineral water was said to have curative powers. Scientists soon discovered that gas
carbonium or carbon dioxide was behind the bubbles in natural mineral water. The first
marketed soft drinks (non-carbonated) appeared in the 17th century, they were made
from water and lemon juice sweetened with honey. In 1676, the Compagnie de
Limonadiers of Paris were granted a monopoly for the sale of lemonade soft drinks.
Vendors would carry tanks of lemonade on their backs and dispensed cups of drink to
thirsty Parisians.

In 1767, the first drinkable man-made glass of carbonated water was created by
Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern
Bergman invented a generating apparatus that made carbonated water from chalk by
sulphuric acid. Bergman's apparatus allowed imitation mineral water to be produced in
large quantities.

In 1810, the first United States patent was issued for the "means of mass
manufacture of imitation mineral waters" to Simons and Rundell of Charleston, South
Carolina. However, carbonated beverages did not achieve great popularity in America
until 1832; First, John Mathews invented his apparatus for making carbonated water, and
then he mass-manufactured his apparatus for sale which gained great popularity.

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Time line of soft drinks industry

1798: The term "soda water" first coined.

1810: First U.S. patent issued for the manufacture of imitation mineral waters.

1819: The "soda fountain" patented by Samuel Fahnestock.

1835: The first bottled soda water in the U.S.

1850: A manual hand & foot operated filling & corking device, first used for bottling
soda water.

1851: Ginger ale created in Ireland.

1861: The term "pop" first coined.

1874: The first ice-cream soda sold.

1876: Root beer mass produced for public sale.

1881: The first cola-flavored beverage introduced.

1885: Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886: Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892: William Painter invented the crown bottle cap.

1898: "Pepsi-Cola" was invented by Caleb Bradham.

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1899: The first patent issued for a glass blowing machine, used to produce glass bottles.

1913: Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919: The American Bottlers of Carbonated Beverages formed.

1920: The U.S. Census reported that more than 5,000 bottlers now exist.

Early 1920's the first automatic vending machines dispensed sodas into cups.

1923: Six-pack soft drink cartons called "Hom-Paks" created.

1929: The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime
Sodas" later called "7 Up". Invented by Charles Leiper Grigg.

1934: Applied color labels first used on soft drink bottles, the coloring was baked on the
face of the bottle.

1952: The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold by
Kirsch.

1957: The first aluminum cans used.

1959: The first diet cola sold.

1962: The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh,
PA. The pull-ring tab was invented by Alcoa.

1963: The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in
March, invented by Ennal Fraze of Kettering, Ohio.

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1965: Soft drinks in cans dispensed from vending machines.

1965: The resalable top invented.

1966: The American Bottlers of Carbonated Beverages renamed The National Soft Drink
Association.

1970: Plastic bottles are used for soft drinks.

1973: The PET (Polyethylene Terephthalate) bottle created.

1974: The stay-on tab invented. Introduced by the Falls City Brewing Company of
Louisville, KY.

1979: Mello Yello soft drink is introduced by the Coca-Cola Company as competition
against Mountain Dew.

1981: The "talking" vending machine invented.

INDIAN SCENARIO OF SOFT DRINKS INDUSTRY

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According to government estimates, soft drinks marketed in India were 6540
million bottles in March 2001. The market growth rate, which was around 2-3% in '80s,
increased to 5-6% in the early '90s and is presently 7-8% per annum. Most of the sales of
soft drinks takes place during summers while just 5-6% of total sales takes place in
winters. In summers, the high season lasts for 70-75 days, which contributes more than
50% of the yearly sales. In terms of regional distribution cola drinks have main markets
in cities and northern states of UP, Punjab, Haryana etc.

Orange flavored drinks and sodas are popular in southern states. Western markets
have preference towards mango-flavored drinks. Non-alcoholic beverage market can be
divided into fruit drinks and soft drinks. Soft drinks available in glass, bottles, aluminum
cans, PET bottles or disposable containers can be divided into carbonated and non-
carbonated drinks. Cola, lemon and oranges are carbonated drinks which includes mango
drinks. Soft drinks can also be divided into cola products and non-cola products. Cola
products in Indian include brands like Pepsi Cola, Diet Pepsi, Coca- Cola, Diet Coca-
Cola, and Thumps up. Cola drinks account for nearly 61-62% of the total soft drinks
market in India. Non-Cola products account for 36% of the total soft drink market.

How Pepsi Entered India

Coca-Cola was forced to leave India in 1977, and Fernandez had personally cited
this to Pepsi in his letter when Pepsi was toying around the idea to enter India. It was
upto Pepsi to offer a very good package to the Indian government. The promises that
Pepsi made played a central role in bringing about an agricultural revolution and
employment in the state of Punjab (This was a wonderful offer, given the political/social
unrest in Punjab during 1980s).

 Focus on food and agro-processing; only 25% of the investment would be for soft
drinks business.

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 Boost the image of Indian products in foreign markets

 Creation of 50,000 jobs in India.

Finally, in 1988, it entered India, as a 'Lehar Pepsi' brand (remember that funny
sketch comes for 7-up these days?) Pepsi's entry into India was even noted by marketing
gurus like Philip Kotler, who said, that Pepsi, apart from using the 4Ps, also used politics
and Public Opinion in the process. But, did Pepsi keep all its promises? It didn’t, and
thankfully, India liberalized, and Pepsi was partly saved. But, Pepsi had done good things
for this country. It brought about an amazing increase in tomato production, through
contract farming. It also offered its contract farmers with advanced equipments free of
cost. It also setup an agro-based research center in Punjab and Karnataka.

Whether Pepsi kept its promise or not, whether the 'pesti'-factor is true or not, it is
a matter of no concern as far as the scope of this survey is concern. What is to be seen in
the case of 'Pepsi's entry is the way in which it was executed - a strategic coordination of
economic, psychological, political and public relations skills to gain the cooperation of a
number of parties in order to enter India. In short, we call it in marketing jargon as
Mega Marketing!

COMPANY PROFILE

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A Brief History Of Giant

Early years

Columbus, Georgia druggist John Stith Pemberton invented a cocawine called


Pemberton's French Wine Coca in 1885, although it was originally meant to be a headache
medicine.

The same year, when Atlanta and Fulton County passed prohibition legislation,
Pemberton began to develop a non-alcoholic version of the French Wine Coca. His book keeper
(and later lead Marketer), Frank Robinson, coined the name Coca-Cola, because it included the
stimulant cocaine and was flavored using kola nuts, a source of caffeine. Pemberton called for 5
ounces (140 grams) of coca leaf per gallon of syrup. The first sales were made at Jacob's
Pharmacy in Atlanta, Georgia, on May 7th, 1886, and for the first eight months only an average
of nine drinks were sold each day. Pemberton ran the first advertisement for the beverage on
May 29th that year in the Atlanta Journal.

Coca-Cola was initially sold as a patent medicine for five cents a glass. Pemberton
claimed Coca-Cola cured myriad diseases, including morphine addiction, dyspepsia,
neurasthenia, headache, and impotence.

In 1887, Pemberton sold a stake in his company to Asa Griggs Candler, who incorporated
it as the Coca Cola Corporation in 1888. In the same year, Pemberton sold the rights a second
time to three more businessmen: J.C. Mayfield, A.O. Murphey, and E.H. Bloodworth.

Meanwhile, Pemberton's son Charley Pemberton began selling his own version of the product.
Three versions of Coca-Cola — sold by three separate businesses — were in the market.

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Under Candler and Woodruff

In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola
belonged to Charley, but the other two manufacturers could continue to use the formula. So, in
the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both
failed to catch on, Candler set out to establish a legal claim to Coca-Cola in the late 1888, in
order to force his two competitors out of business. Candler apparently purchased exclusive
rights to the formula from John Pemberton, Margaret Dozier, and Woolfolk Walker. However, in
1914, Dozier came forward to claim her signature on the bill of sale had been forged, and
subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

In 1892, Candler incorporated a second company, The Coca-Cola Company — the


current corporation. In 1910, Candler had the earliest records of the company burned, further
obscuring its legal origins. Regardless, Candler began aggressively marketing the product — the
efficiency of this concerted advertising campaign would not be realized until much later. Candler
pioneered several promotional techniques, such as the distribution of vouchers for free glasses of
Coca-Cola, and advertising through media, varying from soda fountain urns to wall murals.

Coca-Cola was sold in bottles for the first time on March 12 th, 1894. The first bottling of
Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its
proprietor was Joseph A. Biedenharn. The original bottles were of six-ounce (170-gram)
Hutchinson bottles manufactured by Biedenharn and sealed with a rubber gasket. Reportedly
leaky, they were soon replaced with "crown top" bottles with straight sides, and sealed with a
metal cap; variants of this design remain in use today. The distinctive "hobble-skirt" bottle
design now associated with Coca-Cola was introduced in 1915.

Initially, Candler was tentative about bottling the drink, but the two entrepreneurs who
proposed the idea were so persuasive that Candler signed a contract giving them control of the
procedure. However, the loosely termed contract proved to be problematic for the company for
decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to
other companies — in effect, becoming parent bottlers. This meant that Coca-Cola was

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originally sold in a wide variety of bottles, until the introduction of the iconic, standardized
"hobble-skirt" bottle in 1916.

After the advent of bottling, the company began taking advertising even more seriously
than it had before, hiring William D'Arcy, whose creations set the tone for Coca-Cola advertising
that his successors would follow. D'Arcy associated Coca-Cola with typical everyday scenes of
people going about their daily business; his personal view was that "Coca-Cola advertising
should create scenes that drew people in and made them part of the pleasant interludes of
everyday life". Instead of targeting particular population segments, D'Arcy attempted to appeal
to as broad a class of people as possible, with advertising copy such as "all classes, ages and
sexes drink Coca-Cola".

After Candler, the next executive to have a major impact on Coca-Cola's future was Robert
Woodruff, who focused on expanding the scope of the business to the rest of the US. A noted
workaholic, Woodruff continued to have a major influence on the business long after his
retirement until his death in the 1980s. Woodruff inherited leadership of the company from his
father, Ernest Woodruff, who had successfully led a campaign to takeover the company from
Candler in 1919. Woodruff became President of the Coca-Cola Company four years later.
Emphasizing quality in the production of Coca-Cola, he initiated a "Quality Drink" campaign
aimed at properly training those who served Coca-Cola at soda fountain outlets. Woodruff was
also influential in establishing quality standards for the bottled version of Coca-Cola, which he
thought had great potential. Looking beyond the United States, he set up a foreign department of
the company in 1926, and began opening manufacturing plants in various European and Central
American countries. It was Woodruff who assumed responsibility for designing Coca-Cola's
foreign advertising campaigns, affixing the company logo to racing dog sleds in Canada and

Spanish bullfighting arenas. He also introduced some new forms of distributing Coca-Cola, such
as the six-pack carton, which made bulk purchases of Coca-Cola substantially easier.

In 1929, the onset of the Great Depression led to fears that sales might be depressed for
the year. However, an advertising campaign spearheaded with the slogan "the pause that
refreshes" led per capita consumption of Coca-Cola to actually double. That same year, sales of

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MARKET SHARE ANALYSIS
bottled Coca-Cola overtook those of Coca-Cola sold at soda fountains for the first time.
Throughout the Great Depression, Coca-Cola advertising continued to be upbeat, despite the
bleak economic outlook; a 1935 advertisement depicted a man nonchalantly smiling on his way
to work, presenting an idealised view of American life at the time. The proliferation of Coca-
Cola and a newcomer to the soft drink market, Pepsi, during this period led to a decline in the
sales of Moxie, which had outsold Coca-Cola as recently as 1920, and continued to rival Coca-
Cola's dominance of the American market. The decision of its manufacturer to cut back on
advertising expenditure led to Moxie's eventual marginalization in the United States.

The Great Depression, however, also saw a setback for Coca-Cola with the arrival of a
new competitor — Pepsi; by offering twelve-ounce bottles for the same price (five cents) as
Coca-Cola's six-ounce bottles, as well as a musical jingle in its advertising campaign, PepsiCo
succeeded in becoming a challenger to Coca-Cola's dominance of the American market, with its
profits doubling from 1936 to 1938.

World War II to the 1970s

When the United States entered World War II, sugar rationing in the United States meant Coca-
Cola was unable to produce drinks at full capacity. However, a deal was struck between the U.S.
government and Coca-Cola whereby the company was exempted from sugar rationing, while
Coca-Cola supplied free drinks to the United States Army. The U.S. Army permitted Coca-Cola
employees to enter the front lines as "Technical Officers" where they operated Coca-Cola's
system of providing refreshments for soldiers, who welcomed the beverage as a reminder of

home. After the war, the soldiers brought home their newfound taste for Coca-Cola, popularising
the drink. A survey of soldiers after the war indicated that veterans preferred Coca-Cola to Pepsi
by an 8 to 1 ratio. Coca-Cola has been criticised for its decision to continue trading in Nazi
Germany. Eventually, the difficulty of shipping Coca-Cola concentrate to Germany and its
occupied states, due to the allied blockades, led to the creation of a new drink (Fanta) by a Coca-
Cola employee. Fanta is still sold worldwide to this day.

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MARKET SHARE ANALYSIS
Another wartime innovation was the trademarking of "Coke" by the Coca-Cola
Company, validating it as a way of referring to Coca-Cola. Although widely prevalent in
vernacular usage, the company had initially fought against this practice with the reasoning that
"nicknames encourage substitution". Advertising campaigns encouraged people to "ask for
'Coca-Cola' by its full name," but people persisted in asking simply for "Coke". In 1941, the
company resignedly began advertising Coca-Cola jointly as Coca-Cola and Coke. In 1945, the
"Coke" name was trademarked.

After World War II, Coke began expanding worldwide. Initially having been restricted
only to North America and Western Europe, Coke was soon being distributed in numerous other
countries, especially those, such as the Philippines, which had been occupied by the Americans
during World War II. The process was aided by the company assuming control of a number of
Coca-Cola manufacturing plants which had been established during the war by the army, with
help from the company, in order to spur distribution of the drink to soldiers.

1985 to the Present

New Coke original logo from 1985-1988.

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In April 1985, The Coca-Cola Corporation launched a


reformulated Coca-Cola, dubbed New Coke with an intense
marketing effort. New Coke was an almost complete market
failure. Public backlash to the new formulation was significant,
and The Coca-Cola Corporation re-launched the original formula
in July, 1985 under the brand "Coca-Cola Classic".

Internationally, sales of Coca-Cola vary from country to country; although it is the dominant
soft drink in virtually every country it is sold. Coca-Cola is considered to be one of the most
widely distributed products in the world, and can be obtained in nearly every locality of the
world, from rural Nepal, to Africa, to Beijing.

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PRODUCTS OF COCA COLA

Carbonated Soft Drinks and Functional Beverages

Coca-Cola manufactures and distributes a range of carbonated soft drinks and


functional beverages. Many of the brands are trademarks of The Coca-Cola Company
such as Lift, Sprite, Fanta and Powerade. It also controls a portfolio of its own beverages
including Kirks and Deep Spring.

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MARKET SHARE ANALYSIS
Health and Wellbeing

In recent years Coca-Cola Company has become a broader beverage company,


offering different solutions for different drinking occasions. Water,Juice and low calorie
CSD's are increasingly becoming the growth categories of its business.

In 2004 Coca-Cola Company acquired SPC Ardmona. This acquisition moved


into the food manufacturing and distributing business.

Some of Coca-Cola Beverage Brands:

Coca-Cola

Sprite

Thumps Up

Fanta

Maaza

Finley water

COMPETATORS OF COCA COLA:

Pepsi
Slice
7up
Limca
Aquafina
Mountain Dew
Other beverages

Growth Drivers

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MARKET SHARE ANALYSIS

Product and package innovation

Non-carbonated beverage and food expansion

Growing product availability through cold drink equipment placement and


outlet expansion

Improved customer service and in-market activation

Revenue management and cost discipline

People
At COCA COLA people are their business. It foster an open and inclusive
environment in which their people can strive to ‘always look for a better way’.

They actively promote diversity and equality in their workplace. They know their
people work hard and, as they move forward, they are putting measures in placed to
encourage a healthy work-life balance for their employees. They are committed to
providing and maintaining a safe and healthy workplace for all employees, suppliers,
contractors and visitors. They constructively deal with their people in good faith, while
respecting their relationships with their people and/or any representatives they may
choose.

These commitments not only meet all legal requirements and national standards
in the countries in which they do business, but also cultivate a highly motivated,
productive and committed workforce that drives their business success.

Work-life balance
COCA-COLA recognizes that their employees are constantly juggling
commitments from their home, work and personal lives. At different times in an

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MARKET SHARE ANALYSIS
employees’ career they may need greater work flexibility and they aim to assist them in
achieving a healthy work-life balance.

They provide a number of employee benefits including flexible working


arrangements through their Flexible Work Options Policy, such as job sharing and part-
time work, volunteer services leave, and paid parental and adoption leave.

In 2006, in recognition of the fact that their employees may wish to take more
than their usual annual leave entitlement, they introduced Annual Leave Salary Sacrifice
Plan, whereby employees are able to purchase additional annual leave.

Learning and Development


COCA-COLA employs quality people and develops them for current and future
roles within a climate of continual learning.
They provide appropriate and meaningful learning opportunities so that their
employees can perform at their maximum potential and develop personally and
professionally.

They believe that a productive learning and development environment can be


achieved through the consistent application of these basic steps:
 Incorporating Learning and Development into Functional Business Plans
 Ensuring access and equity in the provision for and conduct of training and
assessment opportunities via their individual development plans for employees

 Educating employees about learning and development opportunities


 Providing performance management materials on their intranet.

Remuneration

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MARKET SHARE ANALYSIS
COCA-COLA believes in paying competitively within each market in which they
operate. They hold each other accountable for performance and reward employees
commensurate with their performance.

Their remuneration and benefits are reviewed regularly to ensure they are fair and
in line with the current market.

Equal Employment Opportunity and Diversity

At COCA-COLA, they value diversity. They believe in equal opportunity


employment and foster a work environment which is inclusive and allows all employees
to develop both personally and professionally. They are committed to providing a safe
and harmonious work environment free from harassment and discrimination and in line
with legislative requirements. ‘Our Working Together Policy’ outlines this commitment.

In addition, there are a number of procedures and initiatives in place that ensure
they fulfil their commitment to being an equal opportunity employer. Initiatives,
such,increasing the number of women in their workplace ensure that they continue to
improve in this area.

Occupational Health and Safety (OH&S)


The occupational health, safety and welfare of all employees are of primary
concern to Coca-Cola’s management. They are dedicated to the provision of a healthy
and safe workplace.
They acknowledge that OH&S is the responsibility of management and every
employee, and they recognize the importance of leading and promoting the highest
principles and practices to ensure health and safety across their operations.

This is evident through their health and safety philosophy:

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MARKET SHARE ANALYSIS
 All accidents, incidents and occupational illnesses are preventable
 All managers are accountable for the management of health and safety, injury
management and workers compensation
 Executive management has direct involvement in the OH&S Management
System and Workers Compensation System
 Occupational health and safety is a condition of employment and all
employees are responsible for complying with legislative and company OH&S
requirements
 Training is a critical component of the OH&S, compensation and injury
programs
 Safety audits and inspections are carried out by all organization levels
 All hazards and deficiencies shall be corrected promptly
 Off-the-job health and safety is an important part of the health and safety
effort.

CHAPTER 3DESIGN OF THE STUDY

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MARKET SHARE ANALYSIS

TITLE OF THE STUDY

To study the market share of COCA-COLA INDIA LIMITED so as to find the


various problems which might arise once the products are commercialized in the market.
This study aims to know the customer preference and attitude regarding COCA-COLA
products.

Statement of the problem

As per the survey conducted we can conclude that the market share of Coca-Cola is
approximately 90%in MURGESHPALYA.

The main objectives of the study are:-

 To study the historical background of COCA-COLA INDIA LIMITED.


 To study the competitive environment.
 To determine critical evaluation of the market.
 To study the effectiveness of the market in today’s world.
 To analyze the functions, procedures in the market share analysis.
 To suggest some strategies, remedies in various aspects of improving market
share.
 To equip myself better in the area of market share analysis.

Scope of the study

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MARKET SHARE ANALYSIS

• At COCA-COLA INDIA LIMITED plant this study was conducted to find the
facts its market share and how to increase it.
• In accordance with the present trends it aims mainly at finding out the market
share of COCA-COLA INDIA LIMITED in the market.

RESEARCH METHODOLOGY

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MARKET SHARE ANALYSIS
METHODOLOGY OF DATA COLLECTION

Research Methodology is a way to systematically solve the research problem.


It may be understood as a science of studying how research is done scientifically. In
Research Methodology we study various steps that are generally adopted by a researcher
in studying this research problem along with the logic behind them. It is necessary for
the researcher to know not only the research methods/techniques but also the
methodology. Researchers need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide certain
techniques and procedures applicable to certain problems. This means that it is necessary
for the researcher to design his methodology for his problem as the same may differ from
problem to problem.

Research Methodology has many dimensions and research methods do constitute


a part of the research methodology. The scope of Research Methodology is wider than
that of research methods. Thus, when we talk of research methodology we not only talk
of the research methods but also consider the logic behind the methods we use in the
context of our research study and explain why we use particular method or technique so
that research results are capable of being evaluated either by researcher himself or by
herself.

Sources of Data
Important criteria for the validity of any research study in a methodical way.

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MARKET SHARE ANALYSIS
In research to get meaningful information, data collected should be accurate and
reliable. There are 2 sources of data collection

1. Primary Data and


2. Secondary Data.
The Primary Data was collected from having discussions with marketing officers
and various retailers. It was also collected through a survey of consumers by using the
technique of questionnaire.

The Secondary Data for this study has been collected by referring to various records of
COCA-COLA INDIA LIMITED; it was also collected from some important journals
magazines and websites

Type of Sample design

There are two types of sample design:


1. Probability Sample
2. Non- Probability Sample

Probability Sample
1. Simple Random Sample: Every member of the population has an equal
chance of selection.
2. Stratified random Sample: The population is divided into mutually
exclusive and mutually exhaustive strata or sub groups and simple
random is selected from each sub-group.
3. Cluster Sample: It implies that instead of selecting individual units from
population, entire groups or clusters are selected at random.

Non- Probability Sample

1. Convenience Sample: This sample is based on the convenience of the


researcher who is to select a sample.

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MARKET SHARE ANALYSIS
2. Judgment Sample: The units or elements are purposively selected in this
sample.
3. Quota Sample: The researcher finds and interviews a prescribed
number of people in several categories.

In this study, the sample design selected is random sampling.

Simple Size Decision

The important decision that has to be taken by the researcher is determining the
size of the sample.

Sample size can be determined by practical approach and statistical approach.


Generally practical approach is widely used by the researcher.
.

Tools and Techniques of Data Collection


Questionnaire
Questionnaires are an inexpensive way to gather data from a potentially large
number of respondents. Often they are the only feasible way to reach a number of
reviewers large enough to allow statistically analysis of the results. Questionnaires are
quite flexible in what they can measure; however they are not equally suited to measuring
all types of data. We can classify data in two ways, Subjective vs. Objective and
Quantitative vs. Qualitative. Different types of questions are consolidated for collecting
exhaustive information regarding the market of Coca-Cola.

Analysis and interpretation


The analysis and interpretation was done from the data collected through
the questionnaires, processed and tabulated in the form of tables and graphs. The table

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MARKET SHARE ANALYSIS
thus obtained by calculating average, percentage, graphs and diagrams to draw
conclusions from the analysis was done.

Limitation of the study

• Time restriction.
• The information, which was needed, could not be made public by the
organization.
• Discussion with all related officials was not possible.
• The study covered a vast concept hence wide collection and coverage of
information was not easily possible.
• Duration for the study was another limiting factor as the report was to be
completed in 6 week’s time

DEFINATION OF MARKET:

Market is defined as a place where buyers and sellers meet together for exchange
of goods and services and their values are determined in terms of money or money’s
worth and also to share mutual understanding with each other.
Therefore, it is essential to know the market and find out the potential customers
of the company. The performance of business activities that direct the flow of goods and
services from the producers or suppliers to the customers and end users.

MARKET SHARE ANALYSIS:


Market share analysis refers to a process of scanning the environment and finding
out the prospective customers of the company. This also helps the company to know their
share in the market compared to their competitors.

Market is in fact concerned with the sophisticated strategy of endeavoring to offer


the consumers what they need.

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MARKET SHARE ANALYSIS
Problems in Market share analysis.

1. Inaccurate results
2. It is an expensive exercise
3. It is time consuming affair
4. It gives tips to competitors

How is Market share analysis conducted?

Market share analysis is rapidly approaching the stage of science or at least


highly developed art. Some companies develop their own plans for test marketing and
some others depend largely on advertising agencies and specialized consultancy houses.
Market share analysis plan design covers the following points
1. Number of cities to be selected
2. Length of test run
3. The information to be collected
4. Action to be taken

Selection of cities is influenced by the factors of representative ness and cost

The length of test run is decided by the factors of average repurchase period,
competition and cost

What information is to be collected is related to two points namely, sales and


profitability in case of alternative plans

The action to be taken is either to go in for commercialization or abandon the


case.

Why Market share analysis?

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MARKET SHARE ANALYSIS

1. To improve the knowledge of potential product sales


2. To predict alternative marketing plans
3. To predict product faults
4. To know the reactions of competitors

ANALYSIS AND INTEPRETATION

NAME OF THE RETAIL STORES:

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MARKET SHARE ANALYSIS

1. DARSHAN WINES
2. CHOICE DAILY NEEDS
3. IYENGAR BAKERY
4. VISVES BAKERY
5. A.S. BAKERY
6. MACS STORES
7. MODERN BAKERY
8. AISHWARIYA BAKERY
9. ABHIRAMI BAKERY
10. VENKATESHWARA STORES
11. H.P. COFFEE BAR
12. KARNATAKA STORES
13. ASHWINI BAKERY
14. BHAVISHYA BAKERY
15. VASANT STORES
16. VENUM BAKE POINT
17. SURYA STORES
18. KM FAZAL PROVISION STORES
19. LOVELY BAKERY
20. CITY FOODS

ADDRESS OF THE STORE:

ALL BASED IN MURGESH PALYA AREA LIMITS

1. Which brand of soft drinks do you purchase and sell the most in your store?

BRAND NO. OF RESPONDENTS PERCENTAGE

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MARKET SHARE ANALYSIS
PEPSI 2 10%

COCACOLA 18 90%

From the above table and the graph we can infer that most of the respondents prefer
COCA-COLA as their soft drink
We can also tell that almost 90% of the respondents purchase and sell only COCA-COLA
products as against only 10% of PEPSI products

GRAPH SHOWING THE PURCHASING AND SELLING SATISFACTION OF


RETAILERS

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MARKET SHARE ANALYSIS

2. Which brand of Coca-Cola do customers prefer the most?

BRAND NO. ORF RESPONDENTS PERCENTAGE

COCA-COLA 2 10

SPRITE 7 35

LIMCA 2 10

THUMSUP 6 30

FANTA 1 5

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MARKET SHARE ANALYSIS

MAAZA 2 10

From the table we can tell that SPRITE has the maximum sales when compared to other
products like THUMPS UP with 30%, followed by LIMCA, MAAZA, and COCA-
COLA with 10% and FANTA with 5%

GRAPH SHOWING THE MOST LIKED BRAND OF COCA-COLA

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MARKET SHARE ANALYSIS

3. Are you satisfied with the sales of Coca-Cola?

NO. OF RESPONDENTS PERCENTAGE

YES 18 90

2 10
NO

From the table we can infer that 90% of the respondents were satisfied with the sales of
all COCA-COLA products as against 10% satisfaction with PEPSI products

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MARKET SHARE ANALYSIS

GRAPH SHOWING THE SATISFACTION LEVEL

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MARKET SHARE ANALYSIS

4. Do you think advertisements, offers of Coca-Cola brands help in increasing the


demand of the products?

NO. OF RESPONDENTS PERCENTAGE

TOTALLY AGREE 8 40%

AGREE 6 30%

NEUTRAL 4 20%

DISAGREE 1 5%

TOTALLY DISAGREE 1 5%

We can infer that offers advertisements provided by the company are very good. We can
see that 40%of the retailers were in total agreement with it where as only 30%,20%were
in agreement and neutral and only 10%of them were not satisfied with the offers

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MARKET SHARE ANALYSIS

GRAPH SHOWINGTHE INCREASE IN DEMAND

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MARKET SHARE ANALYSIS

5. How many cases do you sell in a week?

NO. OF RESPONDENTS PERCENTAGE

LESS THAN 25 CASES 13 65%

MORE THAN 25 CASES 5 25%

MORE THAN 50 CASES 2 10%

Most of the respondents sold less than 25 cases in a week and the rest shared with
other retailers who sold more than 25 and 50 cases respectively every week

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MARKET SHARE ANALYSIS

GRAPH SHOWING THE SALES WITH RESPECT TO CASES SOLD

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MARKET SHARE ANALYSIS
6. Which package do customers prefer?

NO. OF RESPONDENTS PERCENTAGE

PET BOTTLES 6 30%

GLASS BOTTLES 14 70%

From the table we can infer that 70% of the respondents preferred their Cola in
Glass bottles as against 30%of the respondents preferred in pet bottles

GRAPH SHOWING THE PACKAGE PREFERRED BY CUSTOMERS

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MARKET SHARE ANALYSIS

7. Compare the brand with respect to the following:

TASTE PRICE BRANDING NO. OF PERCENTAGE

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MARKET SHARE ANALYSIS
RESPONDENTS

PEPSI 1 1 2 10%

COCA-COLA 4 14 18 90%

From the table we can infer that 90% of the respondents preferred COCA-COLA as
against 10% PEPSI with respect to taste and branding as the price was the same

GRAPH SHOWING THE COMPARISON BETWEEN PEPSI AND COCA-COLA

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MARKET SHARE ANALYSIS

8. Number of bottles present in the store

WARM CHILLED EMPTY NO. OF PERCENTAGE


RESPONDENTS

PEPSI Less Less than More than 2 10%

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MARKET SHARE ANALYSIS
than20 10 50
COCA- Less than More than Less 18 90%
COLA 10 30 than10

90% of the respondents had more chilled bottles of COCA-COLA rather


than PEPSI since these products were fast moving and the number of empty bottles were
also less as they were replaced with filled ones as and when they became empty.

GRAPH SHOWING THE NUMBER OF BOTTLES PRESENT IN THE STORE

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MARKET SHARE ANALYSIS

9. Which company do you think will provide the maximum after sales service?

NO. OF RESPONDENTS PERCENTAGE

PEPSI 2 10%

COCA-COLA 18 90%

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MARKET SHARE ANALYSIS

From the survey conducted we can infer that 90% of the respondents liked the post sales
service of COCA-COLA rather than PEPSI since they hardly contacted them

GRAPH SHOWING THE COMPANY WHICH PROVIDES MAXIMUM AFTER


SALES SERVICE

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MARKET SHARE ANALYSIS

10. Which media is more effective in advertising Coca-Cola brands?

NO. OF RESPONDENTS PERCENTAGE

NEWSPAPER 7 35%

TELEVISION 9 45%

MAGAZINES 4 20%

From the survey we can infer that 45% of the respondents felt that T.V is
more effective in advertising Coca-Cola products than other forms of media Newspaper
and Magazines were with 35 and 20% respectively.

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MARKET SHARE ANALYSIS

GRAPH SHOWING THE MEDIA WHICH IS MORE EFFECTIVE

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MARKET SHARE ANALYSIS

11. The bill amount of PEPSI and COCA-COLA on a weekly basis?

LESS MORE MORE NO. OF PERCENTAGE


THAN THAN THAN RESPONDENTS
1000 1000 2000
PEPSI 1 1 2 10%

COCA- 2 6 10 18 90%
COLA

From the survey it was found that only 10%of the respondent’s had Pepsi’s bills and the
rest 90%of the respondents had only Coca-Cola which exceeded than that of Pepsi.

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MARKET SHARE ANALYSIS

GRAPH SHOWING BILL AMOUNTS

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MARKET SHARE ANALYSIS

SUMMARY OF FINDINGS:

1. It was found that 90%of the customers were satisfied with sales, services, taste,
branding and pricing of all Coca-Cola products.

2. It was also found that the bills of Coca-Cola exceeded than that of Pepsi.

3. It was also interpreted that all the advertisements and offers offered by Coca-Cola
products were amazing since most of the customers were satisfied with them.

4. We can also see that most of sales contribution was from glass bottles rather than
pet bottles and customers are becoming eco friendly as they know that plastic
bottles are harmful to them.

5. It was also seen that Sprite almost contributed to 50% of the sales of all other
Coca-Cola products like Thumbs up, Coca-Cola, Fanta and Maaza.

6. It was also seen that newspaper and T.V. contributed to maximum awareness
among customers.

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MARKET SHARE ANALYSIS

SUGGESTIONS:

1. In order to maximize their sales the company should allow price discounts to their
regular customers and to those customers who sell their products in large
quantities.

2. Pay the customer’s 20% of their electricity bills as they keep their coolers
switched on for 24 hours everyday.

3. Provide discounts on bills exceeding Rs5000 per month.

4. Provide extra free bottles with each case.

5. Provide banners and hoardings for their stores with the name of the store and
different products of Coca-Cola.
6. Faster replacement of damaged and leaked bottles.

7. Extra credit facilities to their customers who pay their bills on a regular basis.

8. No wonder Coca-Cola is making more sales than Pepsi in soft drinks but Pepsi is
making profits from their food products like lays and other eatables .Therefore,
Coca-Cola should also start providing some eatables in order to maximize their
profits.

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MARKET SHARE ANALYSIS

BIBLOGRAPHY

QUESTIONAIRE

NAME OF THE STORE:

ADDRESS OF THE STORE:

1. Which brand of soft drinks do you purchase and sell the most in your store?

a. Pepsi
b. Coca-Cola

2. Which brand of Coco-Cola do customers prefer the most?

a. Coca-Cola
b. Sprite
c. Limca
d. Thumsup
e. Fanta
f. Maaza

3. Are you satisfied with the sales of Coca-Cola?


a. Yes
b. No

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MARKET SHARE ANALYSIS

4. Do you think advertisements, offers of Coca-Cola brands help in increasing the


demand of the products?

TOTALLY AGREE NEUTRAL DISAGREE TOTALLY


AGREE DISAGREE

5. How many cases do you sell in a week?

a. less than 25 cases


b. more than 25 cases
c. more than 50 cases

6. Which package do customers prefer?

a. Pet bottles
b. Glass bottles

7. Compare the products with respect to the following

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MARKET SHARE ANALYSIS
PEPSI COCA-COLA

TASTE TASTE

PRICE PRICE

BRANDING BRANDING

8. Number of bottles present in the store

PEPSI COCA-COLA
a. Warm
b. Chilled
c. Empty

9. Which company do you think provides the maximum after sales service?
a. Pepsi
b. Coca-Cola

10. Which media is more effective in advertising Coca Cola brands?


a. Newspaper
b. T.V
c. Magazines

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MARKET SHARE ANALYSIS

11. The bill amount of PEPSI and COCA-COLA on a regular basis


a. less than Rs1000
b. more than Rs1000
c. more than Rs2000

WEBSITES:

1. Website: www.google.com

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MARKET SHARE ANALYSIS

2. website: www.Coca-ColaIndia.com

BOOKS REFERRED:

 KOTLER PHILIP, Marketing Management

 REDDY AND APPANIAH, Marketing Management

WEEKLY REPORT

Name of the Organization : COCA-COLA INDIA LIMITED


Name of the student : SHOAIB UR RAHAMAN
USN : IAT06MBA47

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MARKET SHARE ANALYSIS
Name of the Institution : ATRIA INSTITUTE OF TECHNILOGY

WEEKS PERIOD ACTIVITY


1. 24/12/2007 to 29/12/2007 Collection of Primary Data

2 31/12/2007 to 05/01/2008 Collection of Secondary Data

3 07/01/2008 to 12/01/2008 Designed Research Methodology

4 14/01/2008 to 18/012008 Analysis of Data


5 21/01/2008 to 25/01/2008 Analysis and interpretation

6 28/01/2008 to 02/02/2008 Finalizing the report and


approving the draft.

Mr. ANAND RATNA PARKHI,


Asst. Sales Manager,
COCA-COLA INDIA LIMITED,
BANGALORE (SHOAIB UR RAHAMAN)
(IAT06MBA47)

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