BABUUU

CONSUMER BEHAVIOUR AND MARKETING
STRATEGY TOWARDS COCA-COLA COLD DRINK”S”
INTRODUCTION
BACKGROUND OF THE STUDY
Every marketing activity revolves around the customer. He is the focal

point. In the early stages of economics evaluation, the customer had to accept
what producer had produced. But today the consumer dictates terms to the
manufacture to manufacture the products he wants. Consumers purchase a
commodity dictated by their mental and economics forces. Mental forces create
desires and wants and the consumers feel that products offered by
manufacturers can satisfy that want. Hence, he has to choose between the
wants and select the products according to the priority of consumption.
To understand marketing, one must understand buyer behavior, for

marketing success or failure depends on target consumers individual and group
reaction expressed in the form of buying patterns. Therefore, in order to
undertake the marketing program among different segments, the marketing
management must find out as to, who influences the buying decision? Who
makes the buying decision? Who makes the actual purchase? And who
ultimately use the product? It may be stated that in the process of buying
different individuals may be influence the demand for its product, the many
possibilities can be collected into group of variables know as the 4 ‘P’ as
proposed by M.C.Carty. “Product, price, place and promotion”.
Involved or only one number may do all the four tasks, of the user of the
product may be influence, decider, and the purchaser.
M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 1

STATEMENT OF THE PROBLEM:
Cold drinks, being a seasonal summer product are sold strongly from
February to August in a year. The problem being to find out brand preference
and awareness among Cold drinks available in the market the study also
includes to analyze the reason why a particular brand will be preferred by
consumers and which advertisements is more effective in selling a particular
brand of Cold drinks.
OBJECTIVE OF THE STUDY:
1. To understand consumers attitude with respect to Cold drinks.

2. To identify the factors influencing marketing strategy of Coca-Cola
Cold drinks.
3. To determine brand awareness and brand preference of Coca-
Cola Cold drinks among the consumers.
4. To know the effectiveness of advertisement of coke in influencing
people.
2.5 SCOPE OF THE STUDY:
This study covers the level of satisfaction relating to the taste, quality of
the products, satisfaction regarding promotional strategies of Cold drinks. The
overall consumer’s opinion survey on Cold drinks and is restricted to
BANGALORE only. The study is done to analyze the opinion of consumer
towards the Cold drinks. They survey was conducted from.
2.11 LIMITATIONS OF THE STUDY:

• It is one time study.

• The study is restricted to Bangalore city and the findings may not be
applicable to any other geographical location.
• Non-coverage error – because of inadequacies in the sampling frame /
design. Field error – respondents may have provided responses, which differ
from what is actually true to correct.
COMPANY PROFILE
Coca-Cola enterprises are the world’s largest marketer, producer and

distributer of products of the Coca-Cola Company. The brands of the Coca-Cola
Company represent some of the most popular beverage brands in the world. The
company also distributes Dr. Pepper and several other beverage brands.
Coca-Cola enterprises is in the non alcoholic beverage business, which

extends our product line beyond traditional carbonated soft drink categories to
beverages such as still and sparkling waters, juices, isotonic, coffee based drinks
and teas. The Coca-Cola Company at present is operating more than 200
countries world wide.
3.1 INCEPTION:
Coca-Cola® originated as a soda fountain beverage in 1886 selling for

five cents a glass. Early growth was impressive, but it was only when a
strong bottling system developed that Coca-Cola became the world-famous
brand it is today.

1894 … A modest start for a bold idea

1899 … The first bottling agreement
1900-1909 … Rapid growth
1916 … Birth of the Contour Bottle
1920s … Bottling overtakes fountain sales
1920s and '30s … International expansion
1940s … Post-war growth
1950s … Packaging innovations
1960s … New brands introduced
1970s and '80s … Consolidation to serve customers
1990s … New and growing markets
21st Century … Think local, act local .
3.2 HISTORY OF COCA COLA
The Coca Cola Company is the world’s largest beverage company. We

operate in more than 200 countries and market a portfolio of more than 3000
beverage products including sparkling drinks and still beverages such as
waters, juice, soft drinks, sports drinks & energy drinks
• On may 8 1986, Atlanta druggist Dr.John Styth Pemberton (former

Confederate officer) invented “Coca –Cola” syrup using melted sugar, water
and other ingredients. It was mixed in a 30-gal brass kettle hung over a
backyard fire. It was marketed as a “brain and never tonic” in drugstore Sales
averaged nine drinks per day.
• Fran M.Robinson, Pemberton’s bookkeeper, was the person who

suggested the name “Coca – Cola”, which was chose because both words
actually named two ingredients found in the syrup. They were the coco leaf

and the Kola nut. Robinson spelled Kola with a “C” to make it look better in
advertising
• The first year’s gross sales were $50 and advertising costs were
$73.96
• The first ever advertisement for Coca Cola appears in the “Atlanta
Journal”
• In the year 1887 free drink coupons are distributed to encourage

people to try Coca Cola
• In the year 1891 Coca Cola first uses calendars and outside posters
for advertisement
• In the year 1983 the Coca Cola trademark is registered in the U.S
patent office
• In year 9184 Coca Cola is first put into bottles in Vicksburg Mississippi
by Joseph. B
• In the year 1895 Coca Cola is sold and consumed in every state and
territory of the U.S, “Proclaims ASA candles”
• In the year 1896 the Coca Cola company distributes branded clocks
• In the year 1899 large scale bottling begins in Chattanoogo,

Tennessee.

• In the year 1901 the annual advertisement budget for Coca Cola
surpasses the $100,000/- mark for the first time.
• In the year 1904 the first magazine advertisement for Coca Cola
appears in National Consumer Publication
• In the year 1906 Cuba, Canada & Panama become the first 3 countries
outside the US to bottle Coca Cola
• In the year 1908 bottles of Coca Cola are delivered by horse drawn
carriages
• In the year 1911 the annual advertisement budget reaches $ 1 million.
• In the year 1912 copy cat beverages tried to capitalized on the sources
of Coca Cola
• In the year 1960 the 6 ½ Ounce refillable glasses counter bottle is

introduced to distinguish Coca Cola from competitors.
• In the year 1919 Coca Cola Company is listed on the New York stock
exchange at $ 40/- share
• In the same year the first European bottling plants open in Paris and
France
• In the year 1923 Robert.W.Woodruff is elected President of the Coca

Cola Company beginning 6 decades of leadership

• In the year 1925 the first bill board for Coca Cola appears
• In the year 1928 the IX Olympic games in Amsterdam and Coca Cola
is there for its first time.
• In the year 1929 the first large Neon sign for Coca Cola is placed in
times square, New York
• In the year 1931 the Coca Cola Santa Clause created by Haddon first
appears in advertising
• In the year 1935 the fist standardized coin operated wending

machines are used
• In the year 1936 the 50 th Anniversary of Coca Cola is celebrated
• In the year 1941 the term “Coke” is used for the first time in Magazine,
Advertisement to help establish it as a trade mark
• In the year 1950 Coca Cola becomes the first ever product to appear
on the cases of TIME MAGAZINE
• In the year 1953 the annual advertising budget surpasses $30 million
• In the year 1955 the king size and family size bottles are introduced
• In the year 1960 the 12 ounce can for Coca Cola is introduced
• In the year 1964 the first lift top cans are introduced

• In the year 1975 Georgia Coffee is introduced in Japan
• In the year 1978 Coca Cola comes to china the only package drinks
allowed in the country
• In the year 1986 Happy 100 th birthday to Coca Cola
• In the year 1989 Coca Cola becomes the first trade mark displayed in
Pushkin square, Moscow
• In the year 1990 Coca Cola is introduced in East German
• In the year 1993 the Coca Cola polar bear first stars in advertising
• In the year 1996 the company sponsors the summer Olympic games in
the home town, Atlanta
• In the year 1999 DASANI a bottle water product joins the companies
line up of brand
• In the year 2001 the “Fridge Pack” a thinner, longer well packed
designed to a take up less space on refrigerators shelves is launched in the
U.S
• In the year 2002 the winter Olympic games held in Salt Lake City,
Utah, Making the 74 consecutive year the Coca Cola company has been an
Olympic sponsored

• In the year 2005 the company extends it sponsorship of the Olympic

Games through 2020.
• In the year 2007 on may 24, THE NEW WORLD OF COCA COLA
opens in Atlanta, Georgia
• In the year 2008 Muhtar Kent becomes the company new chief
executive officer


As the 21st century is fast approaching, marketing is becoming more

attractive at the company, state, national and international levels. In the early
days there was no difference between ‘selling’ and ‘marketing’. But today the
difference between these two terms has been clearly made. Many organizations
have involved in developing marketing activities to satisfy the needs and wants of
a group of customers. With the development of new markets and new avenues of
selling, a wide variety of consumer and producer goods has been designed and
developed and for many the ‘marketing’ has become good profession. The
developing nations are giving much importance for marketing to develop their
internal and external markets.
Water is one of the important substances for human body. Due to

increasing pollution the environment water which we take is polluted and for
many years various techniques were used to control the contamination in

water. At one time boiling was considered as a safe method to kill germs
and viruses.
There is always a danger for contamination during subsequent

Colding, storage and handling of water and boiling is a fine consuming
process. Then ceramic candles were used for filtration and these remove
invisible dirt particles. They filter bacteria and do not destroy them. Then
comes chemical treatment, which involves injection of chlorine, mining
chemicals, etc. chloric needs with mixing chemicals etc.
Chlorine reacts with organic matter in water to form a compound;

scientific findings proved that it would produce cancer.
After a watch of all these happenings many companies’ eyes fall on

these areas to produce products which would give a pure drinking water free
from bacteria and viruses.
The market for water servicing gadgets has been shaped by

technological studies in level of safety, cost of convenience – the three basic
parameters used to bait the consumer.
At one time, the urban housewife saw the age old ceramic candle stick
water filter as her only option. First, the liquid had to be boiled to kill
bacteria, and then filtered through the cylindrical tower to eliminate
suspended particles.
In the mid 80’s resin technology had arrived. Products based on this
care primarily in two forms, one – tap attachments, such as ion exchangers,
zero B, which could filter water straight out of the spout (benefit : greater
convenience), and two – resin based cylinders, such as singers Aquarius

(launched early this year) and zero B’s equivalent. In advancement over
their candle stick rivals, resin products offered to kill bacteria and thus turn
boiling redundant.
Towards the late 1980s, ultra-violet (UV) purifiers entered the arena,
led by the Eureka Forbes’ Aqua guard. Though it needed electricity, this
product was more than just a filter. In addition to basic filtration, it used light
rays to inactivate germs. The UV purifiers eliminated the burden of changing
resin cartridges and could be attached to a tap or water Colder for an almost
continues water flow.
Backed by heavy advertising and Eureka Forbes’ legendary direct

selling strength, Aqua guard stored into both offices and up market homes
across the country. Today Aqua guard is priced at Rs. 5,290, about twice as
high as the most effective cylindrical task filters.
1.4 INTRODUCTION TO COLD DRINKS
Basically Cold drinks business is a two way business, because when a

consumer buys a soap or a cigarette that ends the marketing story, but Cold
drinks have to be collected back i.e., bottles. Cold drinks, being a seasonal
product sell shortly, just six months in a year. If a brand is weak on a certain day,
the effect on sales of that particular brand will be shown within next 24 hours.
1.5 THE SUMMERTIME MARKETING MANIA:
Every year when summer comes with vengeance, marketers of summer

products go berserk. This year, the presence of multinational biggies added to
the action. Not to be outdone by Pepsi’s strategy can mania, arch-rival coca-cola,
which is promoting its orange drink Fanta, staged a number of road shows in
Mumbai. The Fanta road shows involved an entourage of music-blasting vehicles
stopping at select sites in Mumbai and inviting youngsters to have fun with Cold
rapping and ‘dancing’ along with a professional dance troupe. In March, in
Chennai, it tied up with the RPG group to launch the Canada Dry hunt.
Participants had cars and were given pagers on which clues would be sent.
Much of the summer marketing craze is restricted to marketers of so-called

summer products-soft (Cold) drinks, ice-creams and other beverages. Yet others
got a rub-off on their sales. Pepsi, for instance, tide up with leading ice-cream
parlors, departmental stores and restaurants where customers were offered free
cans if they spent more than a specified amount on purchases. Says a Pepsi
official; “The idea was to generate fun and excitement around Pepsi cans at the
right places.”
Not surprisingly, most summer marketers keep their focus sharply on

youngsters while planning events. Their prime target is the 13-25 age group,
which is dominated by students who have long summer vacations-holidays when
well – heeled urban kids like to hang out at their favorite ice-cream parlor, music
shopper pizza joint. Pepsi flagged off its ‘Cold Cold Summer’ with rip-off ad in a
leading newspaper. The coupon got customers a can for Rs.7, instead of Rs.15,
and the youngsters came in droves-Pepsi says it redeemed over 100,000
coupons in Mumbai alone.
Rival Coca-Cola, which is focusing on Fanta this summer, calls it

programme ‘the Electric Fanta Vacation’ and kicked it off with a Fanta Film
Festival in Mumbai. It wants to support the’ green generation’ and have a pledge
to grow more trees and save the earth.

In fact, good intentions are part of ‘summer marketers’ briefs this year.
Schweppes launched a scheme where it encouraged people to donate an orange
for orphanages around Chennai and get a bottle of crush free. In the capital, it
encouraged people to exercise their franchise. But cut through the clutter and the
message is clear, summer may be the cruelest season, but it is good time to
push your brand.
1.6 BREAK UP OF COST PER BOTTLE:
Typically a bottle costs between Rs.3.5 to Rs.4 and its life is estimated at
between 30 and 40 refills. The velocity with which the bottle circulates is often the
key to profits. In other words, on an investment of Rs.3.50 to 4 in the packing, a
bottle can register sales of any where between Rs.24 to Rs.26 a years.
Though the perception of the average consumer as hefty price paid for
little value, the break-up of costs shows otherwise; sugar – 15 Ps, cost of bottle –
10 Ps, chemical and water – 10Ps concentrates – 20 Ps, manufacturing
expenses and depreciation – 10 Ps, transport – 10 Ps, Excise duty, sales tax and
other tax – 90 Ps. This adds up to 162 Ps and against this the net realization per
bottle is in the region of Rs.1.80 per bottle. The surplus left is not considered
adequate enough to provide for a reasonable return of investment, modernization
of facilities and expansion.
1.7 A NOTE ON HISTORY OF COLD DRINKS:
Basically there are four types of bottled Cold drinks which are Cola,
Lemon based, Orange based and Clear Drinks. The history of Cold drinks can
be traced way back to the 1970’s. Coke was the first bottle Cold drink in India. It
was very popular till it left in 1977 when the Janata Government came to power in
India. Just after coke left, the Parle’s came into the market and bottled their
product in the same plant. Parle products are Thums Up, Gold Spot, Limca,
Maaza and Citra.
Subsequently Campa Cola was introduced in 1987 to the market with

Torino, the former being bottled by the Khoday’s the close competitor to Parle’s
being the Pepsi Foods Ltd., of Delhi which came to the market in 1990. Their
products are Lehar Pepsi, Lehar 7up, Lehar Miranda, Lehar Slica and Soda.
The other leading bottled Cold drinks through not aerated is Bejois being
the product of Jagadale’s which is strong competitor to the parle’s product Maaza
(non aerated).
1.8 THE INDIAN COLD (SOFT) DRINKS MARKET:
Winters are an unlikely time for cola wars. But the tom-terms appear to
have been hauled out early this season, as both Coca-cola India and Pepsi
Foods India launched high decibel promotions aimed at increasing the visibility of
their respective brands. Pepsi’s pesky punch line however is the least of Coca-
cola’s woes. For, two years after it returned to the country and bought up Parle’s
business, including the Thums Up, Gold Spot and Citra brands for Rs. 150
Crores the Company’s overall market share has dropped from 60% to 56%.
Coca-cola loss ads proved to be Pepsi’s gain, whose brands improved from 30%
to 41% in the same period. Coca-cola problems don’t end there. In the cola
segment, which constitutes more than half the total soft drinks market-Pepsi has
dislodged Thums up from the top spot and now has a 40% market share. The
former Parle brands still retain 30%, but flagship coke comes in a poor third, with
only a 20% market share.
Other former Parle brands have also taken a beating. Cloudy lime drink
Limca which commanded a 20% market share of total soft drinks market in 1993,

has seen its market share drop to 16% today. And Gold Spot, though still the
leader in the orange segment has lost mot of it fizz, with a mere 4.5% share of
the soft drinks market, compared to around 9% in 1993.
According to study connected by a major Delhi-based advertising agency,

Coca-cola spent Rs 26.99 crore on television spots in the first nine months of
1995. Of this, a whopping 81% was allocated to cake alone. Pepsi mean while
spent a piffling Rs 6.68 crores on television ads during this period. On the
country’s best marketing companies, Pepsi ranked 7th while coca-cola came in
13th position. All this may well have contributed to the change of guard at the
helm of Coca-cola in July 95.
Besides such promos, coca-cola is understood to have finalized plans to
launch the real thing in cans. Priced at around Rs 15, the 330 ml cans are slated
to hit the market by middle of the year.
The multinational is also negotiating with some of its international bottlers
to invest in bottling and marketing operations in India.
Rival Pepsi isn’t setting idle either. It has already set aside nearly Rs 8
crore for its advertising programme in the run-up to the during the world cup.
While that’s only a fraction of Coca-cola’s budget, a Pepsi spokesman contends
that “Large had spends do not necessarily mean a successful strategy”.
Certainly the success of its latest “nothing official” campaign clearly proves that
assertion.
While both Coke and Pepsi slugged it out for larger shares of soft drinks
market, the good news is that the market itself is growing pretty steadily. Per
capita annual consumption of soft drinks has risen to 3.5 servings today, as
against 3 servings in 1993 when coke was re-launched. At that time, the industry
as a whole sold 120 million cases a year- a figure that grew to 140 cases by the
end of 1995.

Interestingly, even though soft drinks may have effectively turned into a
two-player industry with brands belonging to Coca-cola and Pepsi accounting for
a whooping 97% of the market, there are new comers thirsting for a larger piece
of the action. For instance, Cadbury Schweppes, whose crush orange drink was
confined to Delhi and Mumbai until now, is hoping to expand its operation
nationwide by summer. Though figures and strategies are being kept tightly
under wraps, one thing is clear: it will certainly add more fizz to the country
already frothing soft drinks market.
PART B:
1 . 9 I NT R O D U C T I O N T O M A R K E T I N G
Marketing consists of all activities by which a company adopts itself to its

environment creativity and profitability. It is the whole business seen from the
point view of its final results that is from the customer point of view. Basically
business firms objective is to convert societal needs into profitable opportunities.
Marketing is an attempt to anticipate satisfies the needs and demands of the
consumer of the society.
Marketing has been referred to as a social and managerial process by many
authors, which confirms the idea that it is not just an educational aspect.
Marketing is so basic that it cannot be considered as a separate function of a
business.

A human need is a state of felt deprivation of some satisfaction. These needs

are not created by their society by marketers; they exist in the very texture of
human biology, human condition. Human wants takes a shape of the culture and
individual personality. Want becomes a demand, when up by purchasing power
and willingness to pay.
Marketing occupies an important portion in the organization of the business
unit. It commits to those efforts, which effect transfer of ownership of goods.
Marketing becomes a process by which products are made available to the
ultimate user from their point of origin.
1.10DEFINITION OF MARKETING
Philip Kotler- “Marketing is determining the needs and wants of the target
markets and delivering the desired satisfaction more effectively and efficiently
than the competitors”
1.11EVOLUTION OF MARKETING
The development of marketing concepts is evolutionary, i.e. gradual rather than

revolutionary. The evolution of marketing is one of the oldest professions of the
world.
Marketing is both philosophy and technology. As philosophy, it guides
and directs the business thinking i.e. whether to produce or not to produce. As
technology it is concern with deciding what should be produced, how and when
products could be most efficiently distributed among the customer. Hence we can
say that producers have adopted different methods in satisfying his customer due
to the change in customer taste and preference.

1.12DISTINCTION BETWEEN MARKET AND MARKETING
Market is an arrangement providing an opportunity to exchange goods.

In the market for as demand and supply, they operate directly by means of
communication and they themselves determine prices. Where as marketing is
sum total of all these activities that is related to free flow of goods are the
hallmark of marketing. That is once the price fixation done the journey starts from
seller and ends at buyer.
1.13THE 4 P’s OF MARKETING
a) PRODUCT
It is the thing possessing value or utility. It has four main components namely
product range, after sales service, brand and package.
b) PRICE
Price is the valuation placed upon the products offered by the organization to
the market. It has to cover pricing, discount, allowance and terms of credit. It
mainly deals with price competition.
c) PEOPLE
The word people refer to the distribution of the product. Distribution is the
delivery of the product at the right time in an efficient manner to consume. It
includes channels of distribution, transportation, and warehousing and inventory
control.
d) PROMOTION

Promotion is the persuasive communication about the product offered by

the organization. It covers advertising, personal selling, sales promotion,
publicity, public relations and exhibition of demonstration used in the promotion.
1.14MARKETING STRATEGY
Marketing strategy is a process that can allow a firm or company to concentrate

its limited resources on the greatest opportunities to increase sales and achieve
a sustainable competative adavantage. A marketing strategy should be centered
around the key concept that customer satisfaction is the main goal.
Marketing strategy is a method of focusing an organization's energies
and resources on a course of action which can lead to increased sales and
dominance of a targeted market niche. A marketing strategy combines product
development, promotion, distribution, pricing, relationship management and other
elements; identifies the firm's marketing goals, and explains how they will be
achieved, ideally within a stated timeframe. Marketing strategy determines the
choice of target market segments, positioning, marketing mix, and allocation of
resources. It is most effective when it is an integral component of overall firm
strategy, defining how the organization will successfully engage customers,
prospects, and competitors in the market arena. Corporate strategies, corporate
missions, and corporate goals. As the customer constitutes the source of a
company's revenue, marketing strategy is closely linked with sales. A key
component of marketing strategy is often to keep marketing in line with a
company's overarching mission statement
Basic theory:
Target Audience
Proposition/Key Element
Implementation
1.15TYPES OF STRATEGY
Marketing strategies may differ depending on the unique situation of the

individual business. However there are a number of ways of categorizing some
generic strategies. A brief description of the most common categorizing schemes
is presented below:
Strategies based on market dominance- In this scheme, firms are classified

based on their market share or dominance of an industry. Typically there are four
types of market dominance strategies:
1) Leader
2) Challenger
3) Follower
4) Nicher
Porter generic strategies- strategy on the dimensions of strategic scope and

strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm’s sustainable competitive advantage. The generic
strategy framework (porter 1984) comprises two alternatives each with two
alternative scopes. These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
1) Product differentiation (broad)
2) Cost leadership (broad)
3) Market segmentation (narrow)
Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
1) Pioneers
2) Close followers
3) Late followers

Growth strategies - In this scheme the question answered is, how should the firm
grow? There are a number of different ways of answering that question, but the
most common gives four answers:
1) Horizontal integration
2) Vertical integration
3) Diversification
4) Intensification
1.16THE CONSUMERS
The term consumer is typically used to refer to someone who regularly

purchases from a particular store or company. Thus, a consumer more generally
refers to anyone engaging in any of the activities used in our definition of
consumer behaviour. Therefore, a consumer is defined in terms of a specified
firm while a consumer is not.
The tradition viewpoint has been to define customers strictly in terms
of goods and service. This position holds that consumer is a potential purchaser
of goods and service offered for sale. This view has been broadened over time
so that at least some scholars at least now do not consider a monetary exchange
essential to the definition of consumer.
At present, our attention will be directed towards ultimate consumers, who
purchase for the; purpose of individual or household consumption. Some have
argued that studying the ultimate consumer also reveals much about industrial
and intermediate buyer and others involved in the purchasing of business firms.
For the sake of simplicity we will focus only on the ultimate consumer behavior
and will not become involved in drawing comparison with industrial purchasing
situation.
1.17DEFINITION OF CONSUMER
A consumer is any person who buys any goods or service for consideration,
paid or promise to be paid or partly or under any system of deferred payment.
Consumer includes also any user of goods other than the buyer himself.
1.19 MEANING:
Consumer behavior is the process “where by individual decide what,

when, where, how and form whom to purchase goods and services”.
Buyer behavior is defined as “All psychological, social and physical

behavior of potential customers as they become aware of evaluate purchase
consume and tell other about products and services each element is important.”
1. Buyer behavior involves both individual (Psychological) process and group
(Social) processes;
2. Buyer behavior is reflected from awareness right through post-purchase;
3. Buyer behavior includes communication, purchasing and consumption

behavior.
4. Consumer behavior basically social in nature. Hence, social environment

plays an important role in shaping buyer behavior.
Thus, the chief characteristics of buyer behavior are:

1. It consists of the Mental and Physical activities which consumers

undertake to acquire goods and services and obtain satisfaction from
them.
2. It includes both observable physical activities, such as walking through the

market to examine merchandise, and making a purchase and mental
activities such as forming attitudes, perceiving advertising materials, and
learning to prefer particular brands.
3. Consumer behavior is very complex and dynamic too- constantly changing

therefore, management needs to adjust with the change, and otherwise
market may be lost.
4. The individual specific behavior in the market place is affected by internal

factors sue as needs, motives, perception and attitudes, as well as by
external or environmental influences such as the family, social groups,
culture, economic and business influences.
To achieve a better understanding of the consumer behavior, study of

those disciplines, which may provide some explanation as to “why people behave
as they do”, is required, such disciplines are economics, sociology, psychology
and anthropology.
1.20DETERMINANTS OF CONSUMER BHEAVIOUR:
Buying behavior is a process; potential customers are subjected to various

stimuli. The customer is regarded as a block box as we cannot see what is going
on his mind. He responds to the stimuli or inputs and may purchase some

product or service of interest to the marketing management. The model of buyer

is a stimulus – response model. Response may be decision to purchase or not to
purchase.
Under the systems view of buyer behavior, we have

1. Inputs,
2. Processing
3. Outputs
4. Feed-back loop
The objective of the process is of course expected satisfaction or service.
Inputs include buyer power, marketing mix and other factors. Buying
power is the ability to participate in the exchange activity. Marketing mix is the
marketing effort in product, price, promotion and distribution appeals. Promotion
appeals are through advertising reference groups, and sales-promotion.
Output are buyer’s attitudes, opinions, feelings, and preferences as

affected by buying process and buyer’s actions such as patronage brand or store
loyalty positive or negative influences upon other? Potential buyer purchasing
responses are: choice of product, brand, dealer, quantities etc.,
1.21 BUYING MOTIVE:
A motive is a derive or an urge for which an individual seeks satisfaction

through the purchase of the product. It can be classified in to four:
1. Emotional product motives
2. Rational product motives

3. Patronage emotional motives

4. Patronage rational motives
1.22 EXTERNAL INFLUENCES ON CONSUMER BEHAVIOUR:
External or inter – personal influences on buyer behavior are:

1. Family
2. Reference group,
3. Social class; and
4. Culture.
1. FAMILY:
Most consumers belong to family group. The family can exert

considerable influence in shaping the pattern of consumption and indicating the
decision-making roles. Personal values, attitudes and buying habits have been
shaped by family influences you can notice the brand used by a new housewife
in kitchen are similar to those favored by her mother. The members of the family
play different roles such as influence, decider, purchaser and user in the buying
process, the housewife may act as a mediator of products that satisfy wants and
desires of the children.
2. REFERENCE GROUP:
The concept of reference group is borrowed from sociology and

psychology, buyer behavior is influenced by the small groups to which the buyer
belongs. Reference groups are the social, economic or professional groups and
buyer uses to evaluate his or here opinions and belies, buyers can get advice or
guidance in his or here own thoughts and actions from such small groups.
Reference group is useful self-evaluation and attitude formation.
3. SOCIAL CLASS:
Sociology points out the relationship between social class and

consumption patterns. As a predicator of consumption patterns, marketing
management is familiar with social classes consumer’s buying behavior is
determined by the social class to which they belong or to which they aspire rather
than by their income alone. Broadly speaking, we have three distinct social
classes; upper middle, and lower classes, consumer belonging to middle, usually
stress rationality, exhibit greater sense of choice making, whereas consumers of
lower class have essentially non-rational purchased and show limited sense of
choice making.
4. CULTURE:
Culture represents an overall all social heritages, a distinctive form of
environmental adaptation by a whole society of people. It includes a set of
learned belief, values, attitudes, morale, customs, habits and forms of behavior
that are shared by a society and transmitted from generation to generation within
that society. Culture influence is a for shaping both patterns of consumption and
patterns for decision making from infancy.
1.23 ECONOMIC DETERMINANTS
• Economic Scientists were the first among social scientists to study

consumer and their behavior and provided the details about the solutions
to the consumer and consumption problems. Economists, as we are
aware, took man as a social and rational animal. The basic economic

determinants among other are: personal income –family income – income

expectations level of consumer credit and level of standard of living.
• Personal Income : One’s income is the reward for one’s economic efforts.
Income means purchase power. When we talk of ‘income’ and
‘discretionary income’. ‘Disposable income’ is the amount of money that a
consumer has at his disposal for spending or savings or both. In other
words, of the total gross income, whatever balance remains after meeting
pre-emptive demands like taxes, debt repayment and debt servicing
charges and the like. Any change in disposable income will have change
in consumer buying decisions. Decline in disposable income reduces the
consumer spending.
• Family Income : Where a consumer is the member of a joint family, the

buyer behavior is influenced by the family income rather than the
individual income. It does not mean that one can ignore the individual
income, for family income is the aggregate of individual income of all the
members of the family. In a joint family, it may so happen that a rise in an
individual member’s income may be neutralized by a fall in another
member’s income. That is why, it is the relationship between the family
size or the requirements and the income that finally determines the buying
behavior of the family members.
• Consumer Income Expectations : Many a times, it is the future income

expectations of the consumer that influences such consumer behavior. It
is optimism or the pessimism about consumer income that determines the
level of current spending. If there are bleak prospects of future expected
income, he spends less now and saves more and vice-a-versa. It is worth
nothing here that the force and vitality of a tendency to spend or save
depends on the nature of consumer needs. In case of basic needs of

living, such tendency will be too weak for no consumer denies the
expectations. However, in case of non-essential goods, such tendency
may be very strong to save than to spend if he is expecting weak future
income generation and vice-a versa.
Consumer Liquid Assets :
It is the consumer liquid asset position that influence the consumer

behavior. Liquid assets of consumers are the assets held in the money or
near-money forms of investments. The best examples of this kind are hard
cash – bank balance – bank deposits – bank deposits – shares and bonds
and saving certificates. These assets are built up to buy some consumer
durables or to meet unexpected future needs or contingencies. If a person
has more such liquid assets, more carefree he becomes in spending the
current or the regular income.
1. Consumer Credit :
Availability or paucity of consumer credit has its impact on consumer

buying behavior. Consumer credit is a facility extended by a marketer to
postpone the payment of products bought to some future date. Consumer
credit takes number of shapes like deferred payment, installment
purchasing, hire-purchase arrangements and the like. Easy availability of
consumer credit makes the consumer to go in for those consumer
durables which he would have postponed otherwise. Further, it makes him
to spend more freely the current income.
2. The Level of Standard of Living :

The consumer behavior has the impact of the established standard of

living to which he is accustomed. Even if consumer income goes down,
the consumer spending will not come down proportionately because, it is
very difficult to come down from an established standard of living. On the
other hand, rise in income tends to improve upon the established standard
of living. In case the income falls the shortfall is made good by borrowing
to a certain extent over a short period of time.
2.3 PURPOSE OF THE STUDY:
The study helps in the Coca-cola drinks to appreciate factors leading to

consumer satisfaction the study helps to under stand the consumer attitude
towards Coca-cola drinks.
The study also helps Coca-cola drinks to obtain suggestions regarding
product improvement and service.

3.
METHODOLOHY OF THE STUDY:
TYPES OF RESEARCH:
The research undertaken is a descriptive research. The study uses the both primary
and secondary data. A major part of the work involves field investigation.
SAMPLING TECHNIQUES
A sample is a group of units selected from a larger group (the

population). By studying the sample, one hopes to draw valid
conclusions about the larger group. A sample is generally
selected for study because the population is too large to study
in its entirety. The sample should be representative of the
general population. This is often best achieved by random
sampling. Also, before collecting the sample, it is important
that one carefully and completely defines the population,
including a description of the members to be included. A
common problem in business statistical decision-making arises
when we need information about a collection called a
population but find that the cost of obtaining the information is
prohibitive. For instance, suppose we need to know the
average shelf life of current inventory. If the inventory is large,
the cost of checking records for each item might be high
enough to cancel the benefit of having the information. On the
other hand, a hunch about the average shelf life might not be
good enough for decision-making purposes. This means we
must arrive at a compromise that involves selecting a small
number of items and calculating an average shelf life as an
estimate of the average shelf life of all items in inventory. This

is a compromise, since the measurements for a sample from
the inventory will produce only an estimate of the value we
want, but at substantial savings. What we would like to know
is how"good" the estimate is and how much more will it cost to
make it"better". Information of this type is intimately related
to sampling techniques. This section provides a short
discussion on the common methods of business statistical
sampling.
Random sampling is probably the most popular sampling

method used in decision making today. Many decisions are
made, for instance, by choosing a number out of a hat or a
numbered bead from a barrel, and both of these methods are
attempts to achieve a random choice from a set of items. But
true random sampling must be achieved with the aid of a
computer or a random number table whose values are
generated by computer random number generators.
Method of sampling:
The method of sampling planned for this study is non probability sampling.
SAMPLING DESIGN:
A sample design is a total structure and plan of the sampling exercise. It will have
details of the sampling technique used, the size of the sample, the type of the sample and
any other relevant details. Non probability convenience sampling has been taken for the
study.
a) Sample unit (description)

The most likely consumers of Coca – Cola were identified in the Bangalore city.
They include generally all categories of consumers from the age group between
16 – 50 and above.
c) Sample size:
The sample size of costumers was 100. Considering the scope and constraints of
the study, the sample size selected for this study appears to be adequate. It was
seen that all type of age group was a part of the sample and that the sample was
not biased.
INSTRUMENTATION TECHNIQUES
The Methodology used in this study convenience sampling. The
questionnaire consists of number of questions written in a definite order on a
form. The questionnaire is given to the respondents who are expected to read,
understand and write down in the space meant for the purpose in the
questionnaire itself. In this study questionnaire are presented with exactly the
same wording and in the same order to all the respondents. The study is random
sampling where each and every item in the population has an equal chance of
includes in the sample. The survey includes all kinds of age groups, professions,
social classes etc., but according to the primary survey the more respondents are
of 16-50 years.
The survey conducted was for 100 members. In this 60% of the
respondents were male and the rest of them i.e 40% were females.
COLLECTION OF DATA
PRIMARY DATA:
The primary sources of data were collected from the survey through a
questionnaire. The respondents were interviewed directly as it was helpful in providing
deeper into respondents answers. The questionnaire for the target segment was prepared
and it contained a pre determined question to enable the research to gather the
comprehensive data to meet the objective of the study.
SECONDARY DATA:
The secondary sources of data were collected from various journals, internets and
other sources.
ANALYZES OF DATA:
In order to extract meaningful information from the data. The analysis can be
conducted by using simple statistical tools like percentages, averages and measures of
dispersion. Alternatively the collected data may be analyzed collected; the data analysis is
carried out. The data are first edited, coded and tabulated for analyzing by using
diagrams, graphs, charts, pictures etc.
Data analysis is the process of planning the data in an ordered form, combining
them with the existing information and extracting from them. Interpretation is the process
of drawing conclusions from the data in the study. In this research has analyzed the data
using percentages and graphs.
TOOLS FOR DATA ANALYSIS:
In this research the data analysis tools used are percentages and graphs. The
various attributes were analyzed separately and the importance to each was calculated on
the basis of the percentages. The rank having the maximum percentages was to be
preferred importance to the particular attributes. After looking at each attribute separately
all the attributes were considered together to develop a map on the most preferred rank
for all the attributes.
TOOLS FOR DATA COLLECTING:
PRIMARY DATA COLLECTION:

The tools used for the primary data collection is purely questionnaires.
Personal interviews will be conducted followed by a purpose specific
questionnaire administration designed to obtain data from respondents. It
contained quantitative research questions to understand the attitude and
perception towards buying behavior.
Secondary data:
The sources of this information were journals, company profile,
magazines and newspapers, internet. The secondary data is collected from
books and BUSINESS WORLD MAGAZINES.



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CONSUMER BEHAVIOUR AND MARKETING

STRATEGY TOWARDS COCA-COLA COLD DRINK”S”

BACKGROUND OF THE STUDY

Every marketing activity revolves around the customer. He is the focal

To understand marketing, one must understand buyer behavior, for

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 1

STATEMENT OF THE PROBLEM:

OBJECTIVE OF THE STUDY:

1. To understand consumers attitude with respect to Cold drinks.

2.5 SCOPE OF THE STUDY:

2.11 LIMITATIONS OF THE STUDY:

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 2

• It is one time study.

Coca-Cola enterprises are the world’s largest marketer, producer and

Coca-Cola enterprises is in the non alcoholic beverage business, which

Coca-Cola® originated as a soda fountain beverage in 1886 selling for

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 3

1894 … A modest start for a bold idea

3.2 HISTORY OF COCA COLA

The Coca Cola Company is the world’s largest beverage company. We

• On may 8 1986, Atlanta druggist Dr.John Styth Pemberton (former

• Fran M.Robinson, Pemberton’s bookkeeper, was the person who

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 4

• In the year 1887 free drink coupons are distributed to encourage

• In the year 1899 large scale bottling begins in Chattanoogo,

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 5

• In the year 1911 the annual advertisement budget reaches $ 1 million.

• In the year 1960 the 6 ½ Ounce refillable glasses counter bottle is

• In the year 1923 Robert.W.Woodruff is elected President of the Coca

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 6

• In the year 1935 the fist standardized coin operated wending

• In the year 1936 the 50 th Anniversary of Coca Cola is celebrated

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 7

• In the year 1975 Georgia Coffee is introduced in Japan

• In the year 1986 Happy 100 th birthday to Coca Cola

• In the year 1990 Coca Cola is introduced in East German

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 8

• In the year 2005 the company extends it sponsorship of the Olympic

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 9

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 10

As the 21st century is fast approaching, marketing is becoming more

Water is one of the important substances for human body. Due to

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 11

There is always a danger for contamination during subsequent

Chlorine reacts with organic matter in water to form a compound;

After a watch of all these happenings many companies’ eyes fall on

The market for water servicing gadgets has been shaped by

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 12

Backed by heavy advertising and Eureka Forbes’ legendary direct

1.4 INTRODUCTION TO COLD DRINKS

Basically Cold drinks business is a two way business, because when a

1.5 THE SUMMERTIME MARKETING MANIA:

Every year when summer comes with vengeance, marketers of summer

Much of the summer marketing craze is restricted to marketers of so-called

Not surprisingly, most summer marketers keep their focus sharply on

Rival Coca-Cola, which is focusing on Fanta this summer, calls it

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 14

1.6 BREAK UP OF COST PER BOTTLE:

1.7 A NOTE ON HISTORY OF COLD DRINKS:

Subsequently Campa Cola was introduced in 1987 to the market with

1.8 THE INDIAN COLD (SOFT) DRINKS MARKET:

M.S RAMAIAH COLLEGE OF ARTS SCIENCE & COMMERCE. Page 16

According to study connected by a major Delhi-based advertising agency,