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INTRODUCTION
Soft drinks have been described as making the most
extensive dietary impact of foreign corporations in thedeveloped world. They are usually priced just within the reach of
the poorest in these countries and may represent, via their glossily
advertised images, symbols of an enviable Western lifestyle.
Because of the relative poverty of many people in the Third
World, staple foods may be neglected in preference to soft drinks. In
1969 it was reported that babies in Zambia had become malnourished
because their mothers fed them coke and Fanta, believing it was the
best thing they could give their children. Around the time 54% of the
seriously malnourished children admitted to the childrens hospital at
Ndola had Fantababy written on their progress charts. The Zambian
government subsequently banned Fanta advertisements because of
their influence on the poor.
A study at the Nutrition Institute in Rio de Janeiro found high
levels of consumption of Coke, Fanta and Pepsi in its survey of school
children between 6-14 years old. All the children showed signs of
vitamin deficiency whilst the poorest of them also showed
protein/calorie malnutrition.
A Mexican priest wrote, in 1974, that Mexican villagers believed
soft drinks should be consumed every day, leading to lower
consumption of natural products such as fruit. Some families were
even seen to be selling their natural products in order to buy soft
drinks.
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neighboring countries such as Pakistan, Sri Lanka, Thailand, Indonesia
and the Philippines.
The industry has sought a rationalization of excise duty to
enable it to exploit its potential. Its main grouse is that the Budget
promise made four years ago on doing away with special excise duty
(SED) on all mass-consumption items was implemented, with the
exclusion of aerated soft drinks.
It points out that when cosmetics, refrigerators and
videocassettes were granted waiver of SED, aerated beverages, which
accounted for 90 per cent consumption by the middle and lower
income segments, were not shown the same favour.
To validate its observations, the industry points out that aerated
beverage was capital and employment-intensive and supported
various ancillary offshoots such as manufacturing and service units
PET bottles, crates and visi-coolers, retail, etc. Elaborating further, the
industry says that extra production of every one million casesgenerates additional employment for 1,300 people in the economy.
Against this background it has sought removal of SED. The industry
currently employs directly or indirectly 1.5 lakh people, it claims.
Further, it points out high excise duty results in massive
production of spurious products and passes-offs manufactured in
unlicensed facilities and inflicts loss of revenue to the exchequer.
Global soft drinking growing by 5% year Soft drinks consumption
worldwide is growing by around 5% a year, according to global Soft
Drinks 2002; total volume reached 412,000 million liters in 2001,
equivalent to 67.5 liters per person.
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North America is the largest soft drinks market with a 27% volume
share in 2001.
Carbonates are the biggest soft drinks sector with 45% of global
volume.
Bottled water is the highest growth sector, rising by 10% in 2001
and accounting for 53% of total soft drinks growth from 1996 to
2001.
The five fastest growing countries between 1996 and 2001 were
from Asia, East Europe and the Middle East.
It is important to note the advance of Asia, East Europe and
other developing markets, commented Zenith Research Director Gary
Roethenbaugh. Thanks to highly populous and rapidly emerging
markets such as China and India, consumption in Asia is projected to
overtake that of North America in 2006.
The five fastest growing countries between 2001 and 2006 are all
expected to come from Asia.
Pakistan is predicted to have the highest percentage growth rate of
all.
India is expected to make sizeable volume gains, as affluence
spreads to more of its huge population.
Indonesia, China and Vietnam complete the top five for future
growth.
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We can anticipate that the overall market should bit 523,000
million liters in 2006. A continuing 5% growth rate compares favorable
with at best 1% for hot drinks, 2% for milk and 3% for alcohol.
Economic obstacles and climate fluctuations will, of course, presentnumerous challenges, but the outlook for global soft drinks is as strong
today as it has ever been,
Global soft drinks growth, 1996-2001
M. East 60
E. Europe 49
Asia-Aus 48L. America 32
Africa 29
W. Europe 19
N. America 15
Average 28
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EVOLUTION OF SOFT DRINKS
The history of America and Soft Drinks go Hand in Hand
A uniquely American industry, the manufacturing of soft drinks
began in the 1830s. However, the evolution of soft drinks took place
over a much longer time period. The forerunners of soft drinks began
more than 2,000 years ago when Hippocrates, the Father of Medicine,
first suspected that mineral waters could be beneficial to out well-
being. But Hippocrates did not envision drinking the effervescent
mineral waters bubbling from the earths crust. Instead, the Greeks
and Romans used them for bathing and relaxation. More than a
thousand years passed before mineral waters made the transition from
therapeutic bath to refreshing beverage.
In America, the transition resulted from the discovery of the
natural springs in New York. Many legends and myths developed
about the earths mysterious waters, believed to be cures for
everything from arthritis to indigestion. The claims attracted
physicians and scientists who began studying the tiny bubbles fizzing
from these waters.
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Scientists eventually proclaimed the air being released as gas
carbonium simple carbon dioxide. Soon afterwards they perfected a
way of producing artificially carbonated water in the laboratory. With
that development, it was only a matter of time before soft drinks madeit into the hands of the America public.
By the 1830s, both artificial and natural mineral waters were
considered healthy and refreshing products in America. But
pharmacists, believing they could improve upon their curative
properties, experimented with a multitude of ingredients from birch
bark to dandelions. And while no miracle cures developed, some very
interesting flavors and tastes were discovered. Ginger ale, root beer,
sarsaparilla, lemon and strawberry were among the most popular of
the early flavors.
The soft drink industry was a seasonal business in the early
days, operating primarily during the summer months. Sales were
limited by few outlets for the new carbonated beverages, and by the
consumers restricted mobility.
For many years, Americas pharmacists were the driving force
behind the refinement of soft drinks and many of the flavors and
combinations. Their association with chemistry and medicine made
them ideally suited for this business, still part pharmacology and part
refreshment.
The local pharmacy was the center attraction in many American
towns in the mid-1800s. It was customary to gather around the new
soda foundations and enjoy ones favorite refreshment mixed on the
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spot. However, as the corner drugstore grew in popularity, the soft
drink bottling industry was taking shape.
Gradually, demand grew for soft drinks to be consumed in the
home. Bottling the product proved difficult at first, since pressure from
the carbon dioxide forced corks right out of the bottles. Clearly, if soft
drinks were ever to be sold for consumption beyond the corner
pharmacy, there would have to be a way to keep them corked.
Inventors worked for years to develop a solution, patenting some 1,500
different corks, caps and lids for soft drinks bottles.
Then, in 1892, the crown cap was invented. Tiny in design, the
crown completely revolutionized the soft drink industry by preventing
the escape of carbon dioxide from bottled beverages. In fact, it was
the dominant soft drink closure for more than 70 years.
Soon the crown caps success was being felt at the corner
pharmacy. As home consumption of soft drinks grew, demand at the
corner drug store began to dwindle. Many pharmacists, realizing thepromising future of soft drinks, abandoned their trade to become full-
time bottlers. Others began stocking soft drinks in their stores. Horse
drawn wagons traveled Americas streets, loaded with brand-name soft
drinks and headed for growing retail outlets.
While the crown cap helped lead the way to soft drinks in the
home, it was not until the 1920s that the trend took hold. Theinvention of Hom-Paks, the first six-pack cartons, made it more
convenient to carry products back to the house. Their use resulted in
the increased availability and the growing popularity of soft drinks
across America.
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The appearance of the automobile heralded a new era for the
soft drink industry. Roadside stands appeared across the country.
Service stations became major outlets for bottled refreshment, and
large motorized delivery trucks were better able to satisfy thecountrys growing taste for liquid refreshment.
Automatic vending machines began to appear in the 1920s,
once again changing the business of soft drinks. Vending machines
and fountain dispensers led the way to the expansion of soft drinks to
industrial outlets. Americans could now consume the popular
beverage at home or at work.
New technology helped soft drink bottlers meet growing
consumer demand by significantly increasing the products availability,
Traditional 6-ounce split bottles grew to 8-ounce and then larger and
larger containers. Today, with more than 2 million soft drink vending
machines in the U.S., refreshment is literally right around the corner.
The mushrooming demand for product resulted in the growth ofthe soft drink industry, from the pharmacies into a national industry;
Inventors of soft drinks spread their products across America by
opening a few strategically placed bottling facilities.
America by opening a few strategically placed bottling facilities
through franchise agreements. Eventually it became clear that
supplying a growing nations thirst for soft drinks would require morethan a few additional bottling plants. But until the 1980s, the industry
was primarily one of manual operations. Glass bottles were blown
individually, while filing, sealing, mixing, and packaging were almost
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totally manual operations. Expansion could not occur without a more
mechanized process.
The changed between 1890 and 1910: New automated
machinery was developed, making the soft drink industry more
efficient and productive. The number of plants bottling soft drinks
increased from 1,377 to 4,916, as sales soared.
The industrial age was in full swing, Americas population was
exploding and soft drink demand was booming. Together, the soft
drink industry and the nation entered the era of mass production and
national marketing.
New, modern machinery turned out uniform products and
significantly increased the production of soft drinks. By the time The
Great Depression hit, carbonated beverages already were established
as part of the American way of life. Consumers were unwilling to give
up soft drinks one of the small pleasures they could still afford to
enjoy.
The Depression led the way to the creation of innovative new
soft drink brands and containers, which continued during the 1940s
and 50s.
Responding to consumer demand, the industry rolled out soft
drinks in cans and introduced diet beverages to the market. Carriers
were developed for convenience and ease in taking soft drinks from
the store to the home.
Together, America and its soft drink industry suffered hardships
caused by World War II. Shortages of cork, sugar and steel
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significantly impacted the manufacturing process, but soft drinks
continued to be available to the public. The soft drink industry
participated in scrap metal collection drives and made significant
efforts to conserve natural resources in order to support the war effort.Soft drinks were classified as essential to soldier morale by the U.S.
War Department and both the soft drink industry and federal
government made every effort to provide troops with products. When
unable to ship soft drinks directly to the soldiers, the government sent
machinery and materials so they could be made on the spot.
Since that time, the country has experienced significant
progress-a man on the moon, color TV, computers and compact disc
players. For the soft drink industry, it has meant the development of
new flavors, the sale of canned products in vending machines, and the
invention of Polyethlene Terephthalate (PET) bottles.
Soft drink companies have kept pace with the nations endless
thirst for refreshment. While many things have changed throughout
the years, soft drinks continue to be Americas beverage of choice.
Soft drinks are a good part of America.
SOFT DRINKS INDUSTRY IN INDIA
Introduction
Soft drink market size of FinancialYear2002 was around 270
million. cases (6480 million bottles). The market witnessed 5-6%
growth in the early 90s. Presently the market growth has growth rate
of 7-8% per annum compared to 22% growth rate in the previous year.
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The market size for FinancialYear2004 is expected to be 7000 million
bottles.
Soft drink production area
The market preference is highly regional based. While Cola
drinks have main markets in metro cities and northern cities and
northern states of UP, Punjab, Haryana etc. Orange flavored drinks are
popular in southern states. Sodas too are sold largely in southern
states besides sale through bars. Western markets have preference
towards mango-flavored drinks. Diet coke presently constitutes just
0.7% of the total carbonated beverage market.
Growth promotional activities
The government has adopted liberalized policies for the soft
drink trade to give the industry a boast and promote the Indian brands
internationally. Although the import and manufacture of international
brands like Pepsi and Coke is enhanced in India the local brands are
being stabilized by advertisements, good quality and low cost.
The soft drinks market till early 1990s was in hands of domestic
players like Campa, Thumps Up, Limca etc. but with opening up of
economy and coming of MNC players Pepsi and Coke the market has
come totally under their control.
The distribution network of Coca Cola had 6.5 lakhs outletsacross the country in FinancialYear2002, which the company is
planning to increase to 8 lakhs by FinancialYear2003. On the other
hand Pepsi Companys distribution network had 6 lakh outlets across
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the country during FinancialYear2002, which it is planning to increase
to 7.5 lakh by FinancialYear2003.
Types
Soft drinks are available in glass bottles, aluminum cans and Pet
bottles for home consumption. Fountains also dispense them in
disposable containers Non-alcoholic soft drink beverage market can be
divided into fruit drinks and soft drinks and soft drinks. Soft drinks can
be further divided into carbonated and on-carbonated drinks. Cola,
Lemon and Oranges are carbonated drinks while mango drinks come
under non-carbonated category.
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CHAPTER II
COMPANYPROFILE
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COCA COLA
Company profile
The Coca-Cola Company is the worlds largest beverage
company, refreshing consumers with more than 2,800 products. Alongwith Coca-Cola, recognized as the worlds most valuable brand, the
Companys portfolio includes 12 other billion dollar brands, including
Diet Coke, Fanta, Coca-Cola Zero, vitaminwater, POWERADE,
Minute Maid and Georgia Coffee. Globally, we are the No. 1
provider of sparkling beverages, juices and juice drinks and ready-to-
drink teas and coffees. Through the worlds largest beverage
distribution system, consumers in more than 200 countries enjoy the
Companys beverages at a rate of 1.5 billion servings a day. With an
enduring commitment to building sustainable communities, our
Company is focused on initiatives that protect the environment,
conserve resources and enhance the economic development of the
communities where we operate.
FAST FACTS:
Established: 1886
Ranking: We own 4 of the worlds top 5 nonalcoholic sparkling
beverage brands: Coca-Cola, Diet Coke,
Company Associates: 90,500 worldwide (as of December 31, 2007)
Operational Reach: 200+ countries
Consumer Servings (per day): 1.5 billion
Beverage Variety: We offer more than 2,800 products including diet
and regular sparkling beverages, and still beverages such as 100
percent juices, juice drinks, waters, sports and energy drinks, teas
and coffees, and milk-and soy-based beverages.
New York Stock Exchange Ticker Symbol: KO
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OUR MISSION:
To refresh the world in body, mind and spirit
To inspire moments of optimism through our brands and our actions
To create value and make a difference everywhere we engage
OUR COMMITMENT TO SUSTAINABILITY 2007/2008
HIGHLIGHTS
Respecting People We offered more than 1,600 training classes to
Company associates.
Protecting the Environment We achieved a 2% improvement in
water use efficiency in 2007 as compared to 2006.
Supporting Communities In 2007, The Coca-Cola Company and
The Coca-Cola Foundation made charitable contributions of $99
million to community initiatives worldwide.
Offering Safe, Quality Products We launched more than 150 new
low- and no-calorie products in 2007, increasing our low- and no-calorie beverage portfolio by 17%.
2007 FINANCIAL HIGHLIGHTS:
Our portfolio includes 13 billion dollar brands.
Unit case volume grew 6% to 22.7 billion unit cases worldwide (as
compared to 2006).
Net operating revenues grew 20% to $28.9 billion (as compared to
2006).
More than 70% of our net operating revenues and nearly 75% of our
unit case volume are generated outside of North America.
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We invested $4.1 billion to acquire glaceau, maker of
vitaminwater the fast-growing premier active-lifestyle
beverage
The coca cola company is the global soft drink industry leader,with world head quarters in Atlanta, Georgia. The company and its
subsidiaries employ nearly 30,000 people around the world. Syrups,
concentrates and beverage bases for coca cola, the companys
flagship brand, and over 160 other company soft drink brands are
manufactured and sold by the coca cola company and its subsidiaries
in nearly 200 countries around the world. Infact, approximately 70
percent of company volume and 80 percent of company profit come
from outside the United States. The products of the coca cola company
touch lives everywhere. Their core brands have made an impact
around the world, brands such as Fanta, Sprite, and of course, coca
cola are available and recognized in many countries. Each of their
brands is distributed in one or more countries and is tailored to the
culture and tastes of those consumers. So wherever you are, you are
sure to find a coca cola product to enjoy.
The story begins in Atlanta, Georgia on May 8, 1886, when a
pharmacist called Dr John Smith Pemberton first mixed coca cola in his
back yard. The formula, which was made from carbonated water, cane
sugar syrup, caffeine, extracts of kola nuts and cola leaves, was
brought to the nearby Jacobs pharmacy where it made its debut as a
soft drink the same day, selling for only 5 cents. His bookkeeper
named this drink coca cola after the first two ingredients. And the
same distinctive script he wrote it in is the same logo they use to this
day.
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In January 1893 coca cola was registered with the US patent
office. Later on in 1915 the root glass company created the famous
contour glass bottle for coca cola in 1915.in 1917 coca cola was found
to be the worlds most recognized trademark with a record of 3 millionCokes sold per day. Unfortunately John Pemberton fell ill, and did not
live to see his products success.
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Brand Ambassadors of the Company
Gautam Gambhir
Hritik Roshan Aamir Khan
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HISTORY OF COCA COLA
Early growth
In 1893 Candler registered coca cola as a patented trademark.
He also responded to growing concerns over the dangers of cocaine byreducing the amount of coca in the drink to a trace. However, he kept
some coca extract in coca cola so the name would accurately describe
the drink. Candler only had a patent on the name, and not the drink
syrup that is, the drinks base, containing all the ingredients minus the
carbonated water. He figured that keeping the coca in his formula
would legally allow the company to distinguish its drink from
imitations. Other companies also produced soda drinks made with kola
nut extracts. in particular, the Pepsi cola company and its cola of the
same name would become coca colas major competitor over the next
few decades.
Candler also spent more than $11,000 on his first massive
advertising campaign in 1892.the coca cola logo appeared across the
country, painted as a mural on walls, displayed on posters and soda
fountains where the drink was served. And imprinted on widely
marketed, common household items, such as calendars and drinking
glasses. In addition, Candler was the first person ever to use coupons
to gain customers for a product. He distributed flyers offering free soda
fountain glasses of coca cola to people visiting his drugstore.
In 1894 the coca cola company opened its first coke syrup
production plant outside of Atlanta, in Dallas, Texas. That same year a
candy store owner in Vicksburg, Mississippi, installed bottling machines
and produced the first bottled coke. It had previously been sold only at
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soda fountains. By 1895 the drink was sold in all American states and
territories.
In 1899 lawyers Benjamin Thomas and Joseph whitehead ofChattanooga, Tennessee, bought the exclusive rights to distribute coke
syrup to bottlers throughout most of the country for only one dollar. At
the same time, Candler saw little profit in bottling, and was more than
willing to give up that part of the business.
In 1915 the root glass company created a contour glass bottle
for coke, its design based on the curvature of a coca cola bean. This
bottle design became a coke trademark worldwide. The same year,
Candler retired from the company. In 1919 Candler family sold coca
cola to businessman Ernest Woodruff of Columbus, Georgia, for $25
million.
War time developments
During world war2 (19391945), Woodruff also boosted cokes
popular image in the United States by pledging that his company
would provide coke to every U S soldier. The company did not limit
itself, however, to only doing business that would increase its success
in America. In the period leading up to the war, between 1930 and
1936,it had set up a division of the company in Germany, and it
continued that venture during the war. It recreated its image as a
German company and allowed the Germans to produce all but two,
secret, coca cola ingredients in their own factories.
In 1941 the German companys president, Maqx Keith, developed
Fanta orange soda using orange flavoring and all the German made
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Coke ingredients. The coca cola companys wartime efforts helped it
expand its global market, often with the economic support of the U.S
government. By the end of the war in 1945, it had established 64
overseas bottling plants. That same year the company registered apatent on coca colas popular nickname, Coke.
Post war growth
In 1955 Robert Woodruff retired as the Coca Cola companys
president. Candler and Woodruff are remembered as the two most
important figures in the companys early growth, both for their
contribution to the company and their considerable fortunes donated
to the city of Atlanta. After Woodruffs departure, the company began
to diversify by producing new products, acquiring new business, and
entering new international markets. In 1960 the Coca Cola Company
purchased the minute maid corporation, producer of fruit juices, and
began offering coke in canes. Between 1960 and 1963 it also launched
for new soft drinks in the United States. Fanta an orange soda, Sprite,
a lemon lime soda etc. in 1964 the company acquired the Duncan
foods corporation. In 1967 it created the coco cola foods division by
merging its Duncan and Minute maid operations.
In the late 1960s, coca cola faced difficulties in some of its
foreign markets. When the company built a bottling plant in Israel at
the outset of of the Arab-Israeli War, the government of all Arab league
nations banned the production and sale of Coke. A year later the
company withdrew from its market in India when Indian government
requested that Coca cola reduce its equity in joint ventures to 40
percent. The company refused to relinquish so much control over those
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operations. In 1977 Coca cola began packaging Coke and other drinks
in two liters plastic bottles. In 1982 the company introduced Diet Coke,
which soon became the best selling diet soft drink in the world.
In 1982 coca cola purchased the motion-picture companyColumbia picture industries, Inc, also known as Tri-Star Pictures, for
almost $ 700 million. Two years later, the company sold off its
Columbia holdings and other media acquisitions to Sony Corporation
for over $1.5 billion.
Recent developments
In 1986 the Coca Cola Company consolidated all of its non
franchised U.S bottling operations as Coca Cola enterprises, Ink. The
new company began acquiring independent bottling companies, a
venture that grew in to the worlds largest bottler of soft drinks by
1988.While Coca-Cola Enterprises distributes over half of all Coca Cola
products in the united states, small franchise businesses continue to
bottle, can, and distribute the companys drinks worldwide.
In 1987 the Coca Cola Company was listed in the prestigious Dow
Jones industrial Average index of stock market performance. Its stock
is traded on the New York stock exchange. Coca Cola and Pepsi
Company products occupied nine of the top ten spots in the U.S. At
present Coca Cola ranked first in soft drink sales, and the company
earned almost 80 percent of its profit from international sales.
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EVOLUTION OF COCA COLA
Asa G. Candler, a natural born salesman, transformed Coca-Cola
from an invention into a business. He knew there were thirsty people
out there, and Candler found brilliant and innovative ways to introduce
them to this exciting new refreshment. He gave away coupons for
complimentary first tastes of Coca-Cola, and outfitted distributing
pharmacists with clocks, urns, calendars and apothecary scales
bearing the Coca-Cola brand. People saw Coca-Cola everywhere, and
the aggressive promotion worked. By 1895, Candler had built syrup
plants in Chicago, Dallas and Los Angeles. Inevitably, the soda'spopularity led to a demand for it to be enjoyed in new ways. In 1894, a
Mississippi businessman named Joseph Biedenharn became the first to
put Coca-Cola in bottles. He sent 12 of them to Candler, who
responded without enthusiasm. Despite being a brilliant and innovative
businessman, he didn't realize then that the future of Coca-Cola would
be with portable, bottled beverages customers could take anywhere.
He still didn't realize it five years later, when, in 1899, two
Chattanooga lawyers, Benjamin F. Thomas and Joseph B. Whitehead,
secured exclusive rights from Candler to bottle and sell the beverage --
for the sum of only one dollar.
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Imitation may be the sincerest form of flattery, but The Coca-Cola
Company was none too pleased about the proliferation of copycat
beverages taking advantage of its success. This was a great product,
and a great brand. Both needed to be protected. Advertising focused
on the authenticity of Coca-Cola, urging consumers to "Demand the
genuine" and "Accept no substitute."
The Company also decided to create a distinctive bottle shape to
assure people they were actually getting a real Coca-Cola. The Root
Glass Company of Terre Haute, Indiana, won a contest to design a
bottle that could be recognized in the dark. In 1916, they began
manufacturing the famous contour bottle. The contour bottle, which
remains the signature shape of Coca-Cola today, was chosen for its
attractive appearance, original design and the fact that, even in the
dark, you could identify the genuine article.
As the country roared into the new century, The Coca-Cola
Company grew rapidly, moving into Canada, Panama, Cuba, PuertoRico, France, and other countries and U.S. territories. In 1900, there
were two bottlers of Coca-Cola; by 1920, there would be about 1,000.
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Perhaps no person had more impact on The Coca-Cola Company
than Robert Woodruff. In 1923, four years after his father Ernest
purchased the Company from Asa Candler, Woodruff became the
Company president. While Candler had introduced the U.S. to Coca-
Cola, Woodruff would spend more than 60 years as Company leader
introducing the beverage to the world beyond.
Woodruff was a marketing genius who saw opportunities for
expansion everywhere. He led the expansion of Coca-Cola overseas
and in 1928 introduced Coca-Cola to the Olympic Games for the first
time when Coca-Cola traveled with the U.S. team to the 1928Amsterdam Olympics. Woodruff pushed development and distribution
of the six-pack, the open top cooler, and many other innovations that
made it easier for people to drink Coca-Cola at home or away. This new
thinking made Coca-Cola not just a huge success, but a big part of
people's lives.
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In 1941, America entered World War II. Thousands of men and
women were sent overseas. The country, and Coca-Cola, rallied behind
them. Woodruff ordered that "every man in uniform gets a bottle of
Coca-Cola for 5 cents, wherever he is, and whatever it costs the
Company." In 1943, General Dwight D. Eisenhower sent an urgent
cablegram to Coca-Cola, requesting shipment of materials for 10
bottling plants. During the war, many people enjoyed their first taste of
the beverage, and when peace finally came, the foundations were laid
for Coca-Cola to do business overseas.
Woodruffs vision that Coca-Cola be placed within "arm's reach of
desire," was coming true -- from the mid-1940s until 1960, the number
of countries with bottling operations nearly doubled. Post-war America
was alive with optimism and prosperity. Coca-Cola was part of a fun,
carefree American lifestyle, and the imagery of its advertising -- happy
couples at the drive-in, carefree moms driving big yellow convertibles
-- reflected the spirit of the times.
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After 70 years of success with one brand, Coca-Cola, the
Company decided to expand with new flavors: Fanta, originally
developed in the 1940s and introduced in the 1950s; Sprite followed
in 1961, with TAB in 1963 and Fresca in 1966. In 1960, The Coca-
Cola Company acquired The Minute Maid Company, adding an entirely
new line of business -- juices -- to the Company.
The Company's presence worldwide was growing rapidly, and
year after year, Coca-Cola found a home in more and more places:
Cambodia, Montserrat, Paraguay, Macau, Turkey and more.
Advertising for Coca-Cola, always an important and exciting part
of its business, really came into its own in the 1970s, and reflected a
brand connected with fun, friends and good times. The international
appeal of Coca-Cola was embodied by a 1971 commercial, where a
group of young people from all over the world gathered on a hilltop in
Italy to sing "I'd Like to Buy the World a Coke."
In 1978, The Coca-Cola Company was selected as the only
Company allowed to sell packaged cold drinks in the People's Republic
of China.
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The 1980s -- the era of legwarmers, headbands and the fitness
craze, and a time of much change and innovation at The Coca-Cola
Company. In 1981, Roberto C. Goizueta became chairman of The Board
of Directors and CEO of The Coca-Cola Company. Goizueta, who fled
Castro's Cuba in 1961, completely overhauled the Company with a
strategy he called "intelligent risk taking."
Among his bold moves was organizing the numerous U.S. bottling
operations into a new public company, Coca-Cola Enterprises Inc. He
also led the introduction of diet Coke, the very first extension of the
Coca-Cola trademark; within two years, it had become the top low-
calorie drink in the world, second in success only to Coca-Cola.
One of Goizueta's other initiatives, in 1985, was the release of a
new taste for Coca-Cola, the first change in formulation in 99 years. In
taste tests, people loved the new formula, commonly called new
Coke. In the real world, they had a deep emotional attachment to the
original, and they begged and pleaded to get it back. Critics called it
the biggest marketing blunder ever. But the Company listened, and the
original formula was returned to the market as Coca-Cola classic, andthe product began to increase its lead over the competition -- a lead
that continues to this day.
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The 1990s were a time of continued growth for The Coca-Cola
Company. The Company's long association with sports was
strengthened during this decade, with ongoing support of the Olympic
Games, FIFA World Cup football (soccer), Rugby World Cup and the
National Basketball Association. Coca-Cola classic became the Official
Soft Drink of NASCAR racing, connecting the brand with one of the
world's fastest growing and most popular spectator sports.
And 1993 saw the introduction of the popular "Always Coca-Cola"
advertising campaign, and the world met the lovable Coca-Cola Polar
Bear for the first time. New markets opened up as Coca-Cola products
were sold in East Germany in 1990 and returned to India in 1993.
New beverages joined the Company's line-up, including
Powerade sports drink, Qoo children's fruit drink and Dasani
bottled water. The Company's family of brands further expanded
through acquisitions, including Limca, Maaza and Thums Up in
India, Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury
Schweppes' beverage brands in more than 120 countries around the
world. By 1997, the Company already sold 1 billion servings of its
products every day, yet knew that opportunity for growth was still
around every corner.
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In 1886, Coca-Cola brought refreshment to patrons of a small
Atlanta pharmacy. Now well into its second century, the Company's
goal is to provide magic every time someone drinks one of its more
than 400 brands. Coca-Cola has fans from Boston to Budapest to
Bahrain, drinking brands such as Ambasa, Vegitabeta and Frescolita. In
the remotest comers of the globe, you can still find Coca-Cola.
Coca-Cola is committed to local markets, paying attention to
what people from different cultures and backgrounds like to drink, and
where and how they want to drink it. With its bottling partners, the
Company reaches out to the local communities it serves, believing that
Coca-Cola exists to benefit and refresh everyone it touches.
From the early beginnings when just nine drinks a day were
served, Coca-Cola has grown to the worlds most ubiquitous brand,
with more than 1.4 billion beverage servings sold each day. When
people choose to reach for one of The Coca-Cola Company brands, the
Company wants that choice to be exciting and satisfying, every single
time.
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CHAPTER III
RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Scope of the Study
The study is exclusively conducted on the soft drinks industry to
analyze and obtain insights into the consumer buying behavior towards
soft drinks. It was carried out within city over a period of two weeks
and also to compare the leading brands in the soft drink industry. The
research also encompasses the usage pattern exhibited by the
consumers. 20 RESPONDENTS WERE SELECTED RANDOMLY. They were
asked questions and their opinions well received in writing in every
questionnaire.
Objective of the Study
To determine the factors that led the consumer to use a particular
brand of soft drinks.
To determine which brand of soft drink is widely used in city.
A critical comparison of the leading brands, namely Coco cola and
Pepsi.
To analyze the various factors that influences the buying behaviour
with respect to soft drinks.
To evaluate the consumption pattern of consumers with respect to
soft drinks.
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SAMPLE DESIGN
Type of sampling Non random sampling has been administered in
the project which is arbitrary and subjective. Each member does not
have a known non-zero chance of being included.Moreover Judgment
& Convenient study was used in sampling method
Sample Size - A sample of 20 respondents was considered as sample
size for the research. The sample size is selected by considering
characteristics of interest and objectives of the study. Their
suggestions and recommendations duly recognized.
DATA COLLECTION
Primary Data - The main tool that has been used in data collection is
questionnaire that has been constructed for this purpose. A
respondent was interviewed and data was collected.
Secondary Data - Secondary data was collected from various books;
journals research papers from magazines and also the internet.
Data Analysis
The entire data analysis was done through bar diagrams, pie charts,
and through percentage method.
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CHAPTER IV
ANALYSIS &
INTERPRETATION
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Q1. Which of the following is your favorite brand? (Any One)
Coca Cola Pepsi Sprite Mirinda40 30 10 20
Interpretation:
From table it is clear that maximum no of respondents are prefer the
brand of Coca Cola soft drink and least are preferring the soft drink of
Sprite .
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Q2. Why do you prefer it?
Reasonable Price Taste Brand
Recognition
Influence of
celebrities15 55 25 5
Interpretation:
From table it is clear that maximum no of respondents prefer the
product due to its best taste.
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Q4. In what quantities do you purchase your soft drink?
200 ml 300 ml 500 ml 2 Ltrs.15 15 30 40
Interpretation:
From the above chart it is clear that maximum number of respondents
prefer to buy the product with 2 liters quantity packing.
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Q5. What kind of promotional Schemes do you prefer?
Free Gifts Free Samples Extra Quantity Cash Discounts
20 10 55 15
Interpretation:
From the above chart it is clear that the maximum respondents prefer
to buy the product with Extra Quantity with same price.
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Q7. Who influence your soft drink buying decision?
Friends Family Advertisements Celebrities
25 20 40 15
Interpretation:
From the above chart it is clear that maximum no of respondents are
influenced by the advertisement to buy the soft drink of particular
brand followed by friends, family & celebrities.
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Q9. Have you ever faced any problem with your product?
Yes No
25 75
Interpretation:
From the above table it is clear that maximum no of respondents
doesnt face any such type of problem with their softdrink.
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Q10. Are you satisfied with your product?
Yes No
80 20
Interpretation:
From the above table it is clear that maximum no of respondents are
satisfied with the product which they are presently using.
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CHAPTER V
IMPLICATION &LIMITATIONS
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IMPLICATION & LIMITATIONS
Limitations of the Study
The sample for the study is taken from only 20 respondents. This
can act as a constraint in the study.
Descriptive study tends to get cumbersome and they seem to be
more complex then they appear.
The Area undertaken in research was very limited. But to do a
complete research a wide area is required, so the area is also
a constraint of the study.
The time of research was short due to which many fact has
been left untouched.
While collecting data some of the respondents are not willing
to fill the questionnaire, so they might not fill their true
behavior. This can also be a constraint of the study.
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CHAPTER-VI
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SUGGESTIONS &
RECOMMENDATION
S
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SUGGESTIONS & RECOMMENDATIONS
Based on the analysis and the views of respondents we can make the
following suggestions: -
In todays competitive market the various soft drink companies
should maintain and give priority to quality and taste of the product
which is the primary consideration that customers sort while
purchasing a soft drink.
Advertisement definitely influence the consumers buying
behavior towards soft drinks. Thus more and more advertisement in
boosting up the sales of the soft drinks.
Packaging is another important factor that influences the success
or failure of a brand, therefore bottles should be made colorful and
attractive.
Soft drinks companies should concentrate on distribution channeland should provide various kinds of promotional schemes like Extra
Quantity which is at utmost preference, while free gifts, cash
discounts and free samples are other promotional schemes which
helps in the promotion of the particular brand.
According to respondents Electronic media is the most effective
media for advertising soft drinks.
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BIBLIOGRAPHY
BOOKS
Marketing Management, Kotler Philip, 12th Edition, Pearson
Education.
Marketing Research, G.C Beri, 3rd Edition, Tata McGraw Hill.
Research Methodology, C.R Kothari.
Consumer Behaviour, Schiffman & Kaunak, 9th Edition, Pearsion
Education.
MAGAZINES & JOURNALS
Business standard(News Paper)
Indian Journal of Marketing, March 2006, Article By Dr.Banusmathy
Business World, November 2007
Business India, Advertising
WEBSITES
www. Wikipedia.org
www.thehindubusinessline.com/iw/2006/06/11/images/2006061101
041301.jpg
http://images.google.co.in/images?
um=1&hl=en&q=brand+ambassadors+of+coca+cola&btnG=Searc
h+Images
www. consumerpsychology. Com
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http://images.google.co.in/images?
hl=en&q=Evolution+of+Soft+Drinks&start=21&sa=N&ndsp=21