Cocola Company

7/29/2019 Cocola Company

1/64

SUMMER TRAINING PROJECT ON

A CASE STUDY ON MARKETING MIX OF COCA-COLA COMPANY

BHAI PARMANAND INSTITUTE OF BUSINESS STUDIES

GOVERNMENT OF NCT OF DELHI, DELHI-92

[AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI]

IN PARTIAL FULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION [BBA]-[20O9-2012]

[SIXTH SEMESTER]BY: SHIKHA SHARMA UNDER THE SUPERVISION OF:

ENROLLMENT NO.-01711415109 Mrs.HARVINDER KAUR


2/64

BHAI PARMANAND INSTITUTE OF BUSINESSSTUDIES

SHAKAPUR, DELHI

DECLARATION BY THE CANDIDATE

I here by declare that the work, which is being presented in thisproject, entitled case study of marketing mix of coca-cola

company carried out by me under the Supervision andGuidance of Mrs.HARVINDER KAUR, Project guide, BHAIPARMANAND INSTITUTE OF BUSSINESS STUDIES, SHAKARPUR,DELHI.

This project was undertaken as a part of the major project as perthe Curriculum of GURU GOBIND SINGH INDRAPRASTHAUNIVERSITY, DELHI for the partial fulfillment of BBA from Bhai

Parmanand Institute of Business Studies, Shakarpur, Delhi.

I have not submitted the matter embodied here in this Project forthe award of any other Degree/Diploma.

Name: SHIKHASHARMA

EnrollmentNo.:01711415109


3/64

BHAI PARMANAND INSTITUTE OF BUSINESSSTUDIESSHAKARPUR, DELHI

Date:

CERTIFICATE OF PROJECT GUIDE

TO WHOMSOEVER IT MAYCONCERN

This is to certify that SHIKHA SHARMA, 01711415109,Student of BBA, BPIBS, Delhi, has done a project titled THECASE STUDY ON MARKETING MIX OF COCA-COLACOMPANY under my guidance and Supervision.

Her performance was satisfactory during her Research Processfor the above said Project

[Mrs.HARVINDER KAUR]


4/64

ACKNOWLEDGEMENT

Todays environment accomplished by any academic orprofessional pursuit requires contribution from variousindividuals.

I, sincerely acknowledge the help, encouragement and valuablesuggestion to me by my project guide-Mrs. HARVINDER KAUR.

Without her guidance and active support I would not have beenable to do my summer project successfully. Finally I would like tothank to all the members who help me throughout this projectand their steadfast encouragement throughout the progress ofthis work.


5/64

PREFACE

The Coca-Cola Company established The Coca-Cola Company SupplementalBenefit Plan (the Supplemental Benefit Plan) effective January 1, 1984. TheCoca-Cola Company Supplemental Pension Plan (the Plan) is a successor planto the Supplemental Benefit Pan and constitutes the supplemental pensioncomponent previously provided pursuant to the Supplemental Benefit Plan.The Plan is an unfunded supplemental retirement plan for eligible employees and

their beneficiaries as described herein. The Plan is designed to provide certainretirement benefits primarily for a select group of management or highlycompensated employees which are not otherwise payable or cannot otherwise be

provided under the terms of the tax-qualified retirement plans maintained by TheCoca-Cola Company as a result of the limitations set forth under certainapplicable sections of the Internal Revenue Code or on account of an employeesdeferral of compensation under The Coca-Cola Company Deferred CompensationPlan.

The plan was most recently amended and restated effective January 1, 2008 (thePrior Plan). This amendment and restatement is effective January 1, 2010.On January 1, 2010, the Company amended and restated the Qualified PensionPlan and also renamed the pension plan as The Coca-Cola Company Pension


6/64

Plan. Also effective January 1, 2010, the pension formula under the QualifiedPension Plan changed. Prior to January 1, 2010, the Qualified Pension Plans

benefit formula provided a monthly benefit based on age,

compensation, and length of service. For convenience, this benefit is referred toas the FAE Benefit.Beginning January 1, 2010, the Qualified Pension Plan formula changed to aCash Balance Benefit. The cash balance benefit is based on a hypotheticalaccount established under the Qualified Pension Plan for each eligible participant

(known as the cash balance account). Amounts are credited to each eligibleparticipants cash balance account based on the participants compensation andother factors. Amounts representing interest are also credited to the cash balanceaccount.As a result changes of the changes to the Qualified Pension Plan, amendmentswere required to the Plan as reflected in this amendment and restatement.

Effective at midnight on December 31, 2009, the Company froze future accrualsunder the Supplemental Retirement Plan for The Coca-Cola Company Pilots(Pilots Plan). In addition, the Company transferred the liabilities associatedwith the Pilots Plan to this Plan. Accordingly, the Plan was amended as part ofthe January 1, 2010 amendment and restatement to add a new Appendix B toreflect the transfer of liabilities from the Pilots Plan to this Plan.


7/64

EXECUTIVE SUMMARY

Executive Summary Coca Cola has come along way since itsbeginnings, from selling nine bottles a day to currently over 800 million.As well as becoming one of the most recognised brands. It wasintroduced into Australia in the 1930's and is currently produced by asubsidiary company, Coca Cola Amatil who have had the rights to selland produce Coca Cola's products in Australia since 1990. Two levels ofstrategies are identified by Robbin and Barnwell(2003), corporate

strategies and business strategies. In reference to Coca-Cola, theirstrategies are known as the corporate strategies. These guide theexpectations of the business. On the other hand, Coca-Cola Amatil'sstrategies are the business level strategies, in this case they are mainly theoperationalised versions of the corporate strategies. When investigatingMiles and Snow's four strategies, defenders, prospectors, analysers andreactors, it was evident that Coca-Cola fits best to the prospector type.This is due to Coca-Cola's emphasis on market research and productdevelopment. But it was considered that previously Coca-Cola had amore defensive strategy, since historically it was only focused oncarbonated drinks. Coca-Cola Amatil also fits into both these strategies.They have a strong emphasis on protecting market share, reducing costsand efficiency. But are also involved in market research and productdevelopment. Porter suggests four strategy types, cost leadership,differentiation, focus and stuck in the middle. Coca-Cola appeared to best


8/64

fit the differentiation strategy, as they have an emphasis on being uniqueand brand images. Whereas, Coca-Cola Amatil has a focus strategy. Thecompany is focused on reducing costs and increasing efficiency includingspecializing for their market. Coca-Cola does not own its bottling

companies. This helps keep a competitive edge. Secondly, this makesexiting a market easier and allows access to the localised knowledge ofthese companies. While still owning large portions of the companies,Coca-Cola keep some control

TABLE OF CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

Chapter 1

INTRODUCTION TO THE STUDY

INTRODUCTION

COMPANY PROFILE

PARENTAGE OF COCA-COLA

COMPANY

ITS SPONSERSHIP

CONTRIBUTION TO INDIAN

ECONOMY

HISTORY OF THE COMPANY

INTRODUCTION TO MARKETING MIX

DIFFERENT PS OF MAKETING MIX

WAYS TO DESING MARKETING MIX

NEEDS FOR MARKETING MIX LIMTATIONS TO MARKETING MIX

10-28

Chapter-2 RESEARCH METHODOLOGY

INTRODUCTION TO RESEARCH

METHODOLGY

DATA COLLECTION APPROACH

29-36


9/64

RESEACH METHODOLOGY

OBJECTIVE OF THE STUDY

LIMITATION OF THE STUDY

SAMPLING

Chapter 3

ANNEXURE

QUESTIONAIRE 37-39

Chapter 4

DATA INTERPRETATION AND

ANALYSIS

BAR DIAGRAMS

40-49

Chapter 5

CONCLUSION

FINDINGSSUGGESTIONS

50-53

BIBLIOGRAPHY54


10/64

CHAPTER-1 INTRODUCTION


11/64

INTRODUCTION TO MARKTING MIX

The Marketing Mix is a good way to determine the strategic position of a productor service in the marketplace. This is not a new concept, according to Wikipedia

the origin of the Marketing Mix was in the late 1940s and was presented to theAMA in the 1950s. I was taught to remember the Marketing Mix as the four P's.

PRODUCT - The service(s) or good(s) that you offer your members or potentialmembers. Your products will range from education, meetings, and events to yourlogo items and products. One thing to think about in the association market is thatyour products will often time be intangible. Remember that you will be offering asense of belonging, satisfaction, and joy with your members and this comes from

your members feeling like part of the family. Other intangibles will be anenhanced sense of professionalism by being a part of the association. These aregoing to be the "PRODUCTS" that will keep your members attached and active inyour association.

PRICE - This is the amount one will pay for your product(s). Your price shouldbe determined by a number of factors and not just arbitrarily decided upon. Youneed to think about your costs, competition costs, your market share, and

(possibly the most important) the consumers perceived value of the product.

PLACE - Place represents the location where a product can be purchased andwhere it may take place. With associations a key point is the location of an eventor the time of a meeting. These aspects must be carefully thought out so that itdoes not limit the attendance or participation. Remember that "PLACE" does not


12/64

have to be a physical location, it can also include virtual locations online.

PROMOTION - Promotion is what most people think of when they hear the word"marketing". This is the covering, the part everyone will see and hear. While

many people think that this is what sells the product I think that if a focus is puton the product itself along with its price and its place the promotion just has toinform the consumers of those things in an affective way. Promotion does havefour distinct elements that will work together to be successful. These fourelements are Advertising, Public Relations, Word of Mouth and Point of Sale.Advertising is all things that are paid fornix the promotion of the product whetherit is a print or radion ad or even a promotional product that is used to help

promote the product. Public Relations are pieces that are not directly paid for

such as press releases, sponsorship deals, exhibitions, press coverage orcommunity forums. Word of Mouth is any informal communication about the

product or service by ordinary individuals. Word of Mouth is probably the mostaffective form of promotion because the consumers often hear positive commentsfrom people they trust rather than on a billboard or in a magazine. Point of Sale isthe experience the consumer has when he purchases the product or uses theservice. This is extremely important for association because a positive point ofsale experience can leverage that member into a life time participant in your

activities and services.


13/64

INTRODUCTION TO COMPANY PROFILE

COMPANY PROFILE OF COCA-COLA COMPANY

Coca-Cola is one of the most widely used soft drink in the world. The companyhas very efficient and extensive distribution system in the world. There is a greatvariety of brands offered by Coca-cola throughout the world like Diet coke,

sprite, Fanta, Rc cola, Minute made etc. you can find the Coca-cola soft drinksanywhere in every country of the world.

The 'Coca-Cola' brand has been adopted the strategy of global marketing. Theyare considering the whole world as single market place and uniform marketingstrategy was being used Coca-cola for many years, but now the trend is changing


14/64

and different marketing campaigns are being designed for different regions of theworld. . Business decisions are made on a domestic basis to fit in with the cultureand needs of the domestic community. In 1919 Coca-Cola decided it was time togo global. The Coca-Cola Company decided to take its operations beyond

national boundaries and marketing research was started in central America, chinaand many other countries of the world. Because of successful and efficientmarketing research Coca-cola was able to produce globally in different regions ofthe world.

Coca-cola has got such an intensive distribution and bottlers system that itsproducts are available everywhere in the world, starting from Middle East toAustralia. You can find coca cola product on every retail outlet

There are many reasons why company decided to sell its product in internationalmarket. The prospect exists to sell 'Coca-Cola' worldwide, because 'Coca-Cola' isa product which can be used by everyone irrespective of age and gender, all overthe world. Marketing globally demand the company to have a marketing team inline with a country's consumers so effective sales can be made and good relationswith the abroad key employees can be maintained.

If we look on advertising perspective of Coca-cola, advertising has created a

demand for 'Coca-Cola' worldwide. However, advertising has to be in line withthe domestic culture. An adapted marketing mix means adjusting the mix with the

prevailing culture, geographic, economic and other differences in differentcountries. Different languages and cultures caused problems.

In addition, according to Bettman, et. al, Coca-Colas bottling system is one oftheir greatest strengths. It permits them to do their business on a global scalewhile at the same time maintain a national approach. The bottling companies aredomestically owned and operated by independent business people who are

authorized to sell products of the Coca-Cola Company. Because Coke does nothave complete ownership of its bottling network, its main source of revenue is thesale of concentrate to its bottlers (Bettman, et. al, 1998).

.Brand image is the significant factor affecting Cokes sale. Coca-Colas brandname is very well known all over the world. Packaging changes have also


15/64

affected sales and industry positioning, but in general, the public has tended not tobe affected by new products. Coca-Colas bottling system also allows thecompany to take advantage of infinite growth opportunities around the world.This strategy gives Coke the opportunity to service a large geographic, diverse,

area. (Arthur A. Thompson Jr., A. J, 2005)

INTRODUCTION TO MARKETING

What is marketing? The definition that many marketers learn as they start out inthe industry is:

Putting the right product in the right place, at the right price, at the right time.

It's simple! You just need to create a product that a particularly group of peoplewant, put it on sale some place that those same people visit regularly, and price itat a level which matches the value they feel they get out of it; and do all that at a

time they want to buy. Then you've got it made!

There's a lot of truth in this idea. However, a lot of hard work needs to go intofinding out what customers want, and identifying where they do their shopping.Then you need to figure outhow to produce the item at a price that representsvalue to them, and get it all to come together at the critical time.


16/64

But if you get just one element wrong, it canspell disaster. You could be leftpromoting a car with amazing fuel-economy in a country where fuel is verycheap; or publishing a textbook after the start of the new school year, or selling anitem at a price that's too high or too low to attract the people you're targeting.

The marketing mix is a good place to start when you are thinking through yourplans for a product or service, and it helps you avoid these kinds of mistakes.

Understanding the Tool

The marketing mix and the 4 Ps of marketing are often used as synonyms for eachother. In fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds ofchoices organizations have to make in the whole process of bringing a product or

service to market. The 4 Ps is one way probably the best-knownway ofdefining the marketing mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are:

Product (or Service) Place Price

Promotion

A good way to understand the 4 Ps is by the questions that you need toask to define you marketing mix. Here are some questions that will helpyou understand and define each of the four elements:


17/64

DIFFERENT PS OF MARKETING MIX:

Product/Service

The company has the widest portfolio in beverage industry comprising of 3300products. Beverages are divided into diet category, 100% fruit juices, fruit drinks,water, energy drinks, tea and coffee etc. As per Nielsons data, Coca cola is the

No.1 brand in sparkling beverages, juice, and retail packaged water in 2010. Cocacola has its market presence around 200 countries. Coca cola brands in India areFanta, Maaza, Limca, sprite, Thums up, Minute Maid, Nimbu fresh, Nested iced

tea etc.

What does the customer want from the product/service? What needsdoes it satisfy?


18/64

What features does it have to meet these needs? Are there any features you've missed out? Are you including costly features that the customer won't

actually use? How and where will the customer use it? What does it look like? How will customers experience it? What size(s), color(s), and so on, should it be? What is it to be called? How is it branded? How is it differentiated versus your competitors? What is the most it can cost to provide, and still be sold sufficiently

profitably?

Place:

What channel of distribution will they use?

Two types of channel of distribution methods are available. Indirectdistribution involves distributing your product by the use of an intermediaryfor example a manufacturer selling to a wholesaler and then on to theretailer. Direct distribution involves distributing direct from a manufacturerto the consumer For example Dell Computers providing directly to itstarget customers. The advantage of direct distribution is that it gives amanufacturer complete control over their product.


19/64

Above indirect distribution (left) and direct distribution (right).

Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a

supermarket, or both? Or online? Or direct, via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make

online submissions?


20/64

Price:

The Price is the one of components of Marketing Mix, along with PromotionalMix, Product Distribution and Product. The price is usually defined as financiallyexpressed value of the product or service at the market. Price levels are formingthe public opinion about a specific supplier.

For modern shopper the price is not only the expression of money outflow, butalso represent a certain value, benefit or satisfaction perceived by certain

product / service.

What is the value of the product or service to the buyer? Are there established price points for products or services in this

area?

Is the customer price sensitive? Will a small decrease in price gain youextra market share?

What discounts should be offered to trade customers, or to otherspecific segments of your market?

How will your price compare with your competitors?


21/64

PROMOTION:

Where and when can you get across your marketing messages toyour target market?

Will you reach your audience by advertising in the press, or on TV,or radio, or on billboards? By using direct marketing mail shot?Through PR? On the Internet?

When is the best time to promote? Is there seasonality in themarket? Are there any wider environmental issues that suggest ordictate the timing of your market launch, or the timing of

subsequent promotions? How do your competitors do their promotions? And how does that

influence your choice of promotional activity?

The 4Ps model is just one of many marketing mix lists that have beendeveloped over the years. And, whilst the questions we have listed aboveare key, they are just a subset of the detailed probing that may berequired to optimize your marketing mix.

Amongst the other marketing mix models have been developed over theyears is Boom and Bitner's 7Ps, sometimes called the extendedmarketing mix, which include the first 4 Ps, plus people, processes andphysical layout decisions.

Another marketing mix approach is Lauterborn's 4Cs, which presents theelements of the marketing mix from the buyer's, rather than the seller's,

perspective. It is made up of Customer needs and wants (the equivalentof product), Cost (price), Convenience (place) and Communication(promotion). In this article, we focus on the 4Ps model as it is the mostwell-recognized, and contains the core elements of a good marketingmix


22/64

A Summary Table of the Marketing Mix

The following table summarizes the marketing mix decisions, including alist of some of the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Service/Support

List price

Discounts

Allowances

Financing

Leasing options

Channel members

Channel motivation

Market coverage

Locations

Logistics

Service levels

Advertising

Personal selling

Public relations

Message

Media

Budget


23/64


24/64

Using the 4Ps Marketing Mix Model

The marketing mix model can be used to help you decide how to take anew offer to market. It can also be used to test your existing marketing

strategy. Whether you are considering a new or existing offer, follow thesteps below help you define and improve your marketing mix.

1. Start by identifying the product or service that you want to analyze.2. Now go through and answer the 4Ps questions as defined in detail

above.3. Try asking "why" and "what if" questions too, to challenge your

offer. For example, askwhy your target audience needs a particularfeature. What if you drop your price by 5%? What if you offermore colors? Why sell through wholesalers rather than directchannels? What if you improve PR rather than rely on TVadvertising?

4 Once you have a well-defined marketing mix, try "testing" the overall offer from the customer's perspective, by asking customer focused questions:

1. Does it meet their needs? (product)2. Will they find it where they shop? (place)3. Will they consider it's priced favorably? (price)4. And will the marketing communications reach them? (promotion)

5.Keep on asking questions and making changes to your mix until you aresatisfied that you have optimized your marketing mix, given the information andfacts and figures you have available.

6 Review you marking mix regularly, as some elements will need to change as the product or service, and its market, grow, mature and adapt in an ever-changing competitive environment.


25/64

PARENTAGE OF TH E COMPANY

Coca-Cola Amatil is an Australian company that bottles and distributes TheCoca-Cola Company soft drinks and other beverages in several countries. It is thelargest non-alcoholic beverage company in the Pacific Rim.

Coca-Cola Amatil has diversified and expanded in the past six years to includewater, sports and energy drinks, fruit juices, coffee, ready-to-drink teas and

packaged ready-to-eat fruit and vegetable products. In August 2006, Coca-ColaAmatil entered into a joint venture with brewer SABMiller to distribute their beer

brands into Australia, and from April 2007 began selling and distributing theproducts of spirits distributor Maxxium (later renamed Beam Global Spirits &Wine).

The company's Australian origins date back to 1904 as the tobacco companyBritish Tobacco (Australia). Its first foray into soft drinks came in 1964 with the

purchase of Coca-Cola Bottlers (Perth), and the company was listed on theAustralian Stock Exchange in 1972.

Soft drinks and snack foods gradually became the primary focus of the company,which was renamed Amatil Limited in 1977. It began to expand bottlingoperations overseas in Europe, purchasing a Coca-Cola bottling plant in Australiain 1982 and expanding into Fiji and New Zealand in 1987. A majority stake was

purchased by The Coca-Cola Company in 1989, although today its ownership is30.4%.

The snack food operations were sold in 1992, and European operations were spunoff into a new company, Coca-Cola Beverages, in 1998. Expansion into Asiacontinued, though Filipino bottling was eventually sold to San Miguel Breweryand parent The Coca-Cola Company.


26/64

Its most recent purchase activity has been the acquisition of fruit producer andpackager SPC Ardmona Ltd. Until May 2007, the company also operated theonline music store, Coke Tunes, out of New Zealand.

Coca-Cola Amatil's managing director is Terry Davis, and the board chairman isDavid Gonski.

CCA has facilities all over Australia, with key sites at Northmead (NSW), Northsydney (NSW), Richlands (Qld), Moorabin (VIC), Thebarton (SA) and Kewdale(WA).

On 26 September 2007, CCA announced it was making a conditional takeover

bid for 100% of Golden Circle, but it lost to the H. J. Heinz Company.

In 2008 the company released a series of so-called "myth-busting" advertisementsin Australia featuring actress Kerry Armstrong. The ads attempted to discredithealth concerns consumers had about Coca Cola, including that it "makes you fat"and "rots your teeth". The company was forced to withdraw the claims and

publish corrections in newspapers after the Australian Competition and ConsumerCommission ruled they misled consumers.


27/64

Sponsorship

Sports

Coca-Cola sponsored the English Football League from the beginning of the

200405 season (beginning August 2004) to the start of 2010/11 season, when theFootball League found a new sponsor in NPower.

Along with this, Coca-Cola sponsored the Coca-Cola Football Camp, otherwiseknown as a soccer camp, that took place in Pretoria, South Africa during the 2010FIFA World Cup, during which hundreds of teenagers from around the worldwere able to come together and share their love of the game, partly due to BestBuys efforts through their @15 program.

Other major sponsorships include NASCAR, the NBA, the PGA Tour, NCAAChampionships, the Olympic Games, the NRL, the FIFA World Cups and theUEFA Euro.

In the Philippines, it has a team in the Philippine Basketball Association, thePowerade Tigers.

Television

The company sponsors the hit Fox singing-competition series American Idol.Coca-Cola is a sponsor of the nightly talk show on PBS, Charlie Rose in the US.

In video games


28/64

In PlayStation Home, the PlayStation 3's online community-based service, Coca-Cola placed a vending machine in Home that took users to a space called the"Georgia Break Station". The vending machine also distributed original avataritems and presented, along with "C-pons", digital coupons that could be used to

get real drinks from real vending machines. This was to promote Coca-Cola'sGeorgia series of canned coffee. The space was a lounge where users could sitand chat and included two in-lounge avatars that told the users about the Georgiacoffee. It was available from September 7, 2009 to December 17, 2009 in theJapanese version of Home.

In Dream casts Shenmue in 1999, Coca-Cola was featured in the Japanese onlyversion when the main character Ryo Hazuki finds vending machines on the

street corners in the video game, and actual cans that were sold in Japan in 1986,the setting of the video game. Sometimes, Ryo gets a special can which can beturned in for prizes.


29/64

COTRIBUTION OF COMPANY IN INDIAN ECONOMIC

DEVELOPMENT

The total indirect economic impacts of the Coca-Cola system are significantlygreater than the figures we present in our 2008/2009 Sustainability Review

(PDF). The Coca-Cola system has more than 900 plants around the world. Ouringredients and raw materials are largely sourced locally. And our 92,400employees represent thousands of communities and many cultures. In addition,our bottling partners employ hundreds of thousands of people around the worldand are committed to supporting community investment programs.


30/64

Our global business stimulates job creation throughout our value cycle. Wecontribute to the economic success of each community by employing local

people; paying taxes to governments; paying suppliers for goods, services andcapital equipment; and supporting community investment programs. Past

independent studies on the economic impact of our business in Asia, Africa andEastern Europe have consistently shown that for every job in the Coca-Colasystem, an average of 10 more jobs are supported in local communities.

Oxfam America conducted a Poverty Footprint Analysis on the Coca-Cola/SABMiller value chain in El Salvador and Zambia called Exploring theLinks between International Business and Poverty Reduction.

We have some 20 million customers around the world. These are the retailers,convenience stores, theaters, kiosks and vendors who sell our beverages to ourconsumers. Small, independent retailers form the backbone of our business. Oursystem helps these small retailers and vendors build their businesses and becomeour business partners.

We often help small businesses get off the ground with an initial injection ofsupport -- in the form of equipment and training -- and then we work with them as

business partners and suppliers. From our pushcart programs in Vietnam, which

have helped more than 4,000 retailers, establish their businesses to date, to ourManual Distribution Centers in East Africa, we continuously work to providelocal economic opportunity.


31/64

HISTORY

In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacistfrom Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in athree legged brass kettle in his backyard. The name was a suggestion given byJohn Pemberton's bookkeeper Frank Robinson.

Birth of Coca Cola

Being a bookkeeper, Frank Robinson also had excellent penmanship. It was hewho first scripted "Coca Cola" into the flowing letters which has become the-famous logo of today.

The soft drink was first sold to the public at the soda fountain in Jacob'sPharmacy in Atlanta on May 8, 1886.

About nine servings of the soft drink were sold each day. Sales for that first yearadded up to a total of about $50. The funny thing was that it cost John Pembertonover $70 in expanses, so the first year of sales were a loss.

Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine aswell as the caffeinerich kola nut.

Asa Candler

In 1887, another Atlanta pharmacist and businessman, Asa Candler bought theformula for Coca Cola from inventor John Pemberton for $2,300. By the late1890s, Coca Cola was one of America's most popular fountain drinks, largely dueto Candler's aggressive marketing of the product. With Asa Candler, now at thehelm, the Coca Cola Company increased syrup sales by over 4000% between1890 and 1900.


32/64

Advertising was an important factor in John Pemberton and Asa Candler'ssuccess and by the turn of the century, the drink was sold across the United Statesand Canada. Around the same time, the company began selling syrup toindependent bottling companies licensed to sell the drink. Even today, the US soft

drink industry is organized on this principle.

WAYS TO DESIGN MARKETING MIX

The marketing mix model can be used to help you decide how to take a new offerto market. It can also be used to test your existing marketing strategy. Whether

you are considering a new or existing offer, follow the steps below help youdefine and improve your marketing mix.

1. Start by identifying the product or service that you want to analyze.2. Now go through and answer the 4Ps questions as defined in detail above.3. Try asking "why" and "what if" questions too, to challenge your offer. For

example, askwhy your target audience needs a particular feature. What ifyou drop your price by 5%? What if you offer more colors? Why sellthrough wholesalers rather than direct channels? What if you improve PRrather than rely on TV advertising?

4. Once you have a well-defined marketing mix, try "testing" the overall offerfrom the customer's perspective, by asking customer focused questions:

1. Does it meet their needs? (product)2. Will they find it where they shop? (place)3. Will they consider it's priced favorably? (price)4. And will the marketing communications reach them? (promotion)

5. Keep on asking questions and making changes to your mix until you are

satisfied that you have optimized your marketing mix, given the informationand facts and figures you have available.

6. Review you marketing mix regularly, as some elements will need to changeas the product or service, and its market, grow, mature and adapt in an ever-changing competitive environment.


33/64

NEED FOR MARKETING MIX

When marketing their products firms need to create a successful mix of:

The right product Sold at the right price In the right place Using the most suitable promotion.

To create the right marketing mix, businesses have to meet the followingconditions:

The product has to have the right features - for example, it must look goodand work well. The price must be right. Consumer will need to buy in large numbers to

produce a healthy profit. The goods must be in the right place at the right time. Making sure that the

goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of

the product through promotion. Successful promotion helps a firm to spreadcosts over a larger output.

For example, a company like Kellogg's is constantly developing new breakfastcereals - the product element is the new product itself, getting the price rightinvolves examining customer perceptions and rival products as well as costs ofmanufacture, promotion involves engaging in a range of promotional activities


34/64

e.g. competitions, product tasting etc, and place involves using the best possiblechannels of distribution such as leading supermarket chains. The product is thecentral point on which marketing energy must focus. Finding out how to make the

product, setting up the production line, providing the finance and manufacturing

the product are not the responsibility of the marketing function. However, it isconcerned with what the product means to the customer. Marketing therefore

plays a key role in determining such aspects as:

The appearance of the product - in line with the requirements of the market The function of the product - products must address the needs of customers

as identified through market research.

The product range and how it is used is a function of the marketing mix. Therange may be broadened or a brand may be extended for tactical reasons, such asmatching competition or catering for seasonal fluctuations. Alternatively, a

product may be repositioned to make it more acceptable for a new group ofconsumers as part of a long-term plan.


35/64

LIMITATIONS TO MARKETING MIX

While marketing mix models provide much useful information, there are two keyareas in which these models have limitations that should be taken into account byall of those that use these models for decision making purposes. These

limitations, discussed more fully below, include:

1) The focus on short-term sales can significantly under-value the importance oflonger-term equity building activities; and

2) When used for media mix optimization, these models have a clear bias in favorof time-specific media (such as TV commercials) versus less time-specific media(such as ads appearing in monthly magazines); biases can also occur whencomparing broad-based media versus regionally or demographically targetedmedia.

In relation to the bias against equity building activities, marketing budgetsoptimized using marketing-mix models may tend too much towards efficiency

because marketing-mix models measure only the short-term effects of marketing.Longer term effects of marketing are reflected in its brand equity. The impact ofmarketing spend on [brand equity] is usually not captured by marketing-mixmodels. One reason is that the longer duration that marketing takes to impact

brand perception extends beyond the simultaneous or, at best, weeks-aheadimpact of marketing on sales that these models measure. The other reason is thattemporary fluctuation in sales due to economic and social conditions do notnecessarily mean that marketing has been ineffective in building brand equity. Onthe contrary, it is very possible that in the short term sales and market-share could


36/64

deteriorate, but brand equity could actually be higher. This higher equity shouldin the long run help the brand recover sales and market-share.

Because marketing-mix models suggest a marketing tactic has a positive impact

on sales doesn't necessarily mean it has a positive impact on long-term brandequity. Different marketing measures impact short-term and long-term brandsales differently and adjusting the marketing portfolio to maximize either theshort-term or the long-term alone will be sub-optimal. For example the short-term

positive effect of promotions on consumers utility induces consumers to switchto the promoted brand, but the adverse impact of promotions on brand equitycarries over from period to period. Therefore the net effect of promotions on a

brands market share and profitability can be negative due to their adverse impact

on brand. Determining marketing ROI on the basis of marketing-mix modelsalone can lead to misleading results. This is because marketing-mix attempts tooptimize marketing-mix to increase incremental contribution, but marketing-mixalso drives brand-equity, which is not part of the incremental part measured bymarketing-mix model- it is part of the baseline. True 'Return on MarketingInvestment is a sum of short-term and long-term ROI. The fact that most firmsuse marketing-mix models only to measure the short-term ROI can be inferredfrom an article by Booz Allen Hamilton, which suggests that there is a significantshift away from traditional media to 'below-the-line' spending, driven by the fact

that promotional spending is easier to measure. But academic studies have shownthat promotional activities are in fact detrimental to long-term marketing ROI(Ataman et al., 2006). Short-term marketing-mix models can be combined with

brand-equity models using brand-tracking data to measure 'brand ROI', in boththe short- and long-term.

The second limitation of marketing mix models comes into play when advertisersattempt to use these models to determine the best media allocation across

different media types. The traditional use of MMM's to compare money spent onTV versus money spent on couponing was relatively valid in that both TVcommercials and the appearance of coupons (for example, in a FSI run in anewspaper) were both quite time specific. However, as the use of these modelshas been expanded into comparisons across a wider range of media types,extreme caution should be used.


37/64

Even with traditional media such as magazine advertising, the use of MMM's tocompare results across media can be problematic; while the modelers overlaymodels of the 'typical' viewing curves of monthly magazines, these lack in

precision, and thus introduce additional variability into the equation. Thus,

comparisons of the effectiveness of running a TV commercial versus theeffectiveness of running a magazine ad would be biased in favor of TV, with itsgreater precision of measurement. As new new forms of media proliferate, theselimitations become even more important to consider if MMM's are to be used inattempts to quantify their effectiveness. For example, Sponsorship Marketing,Sports Affinity Marketing, Viral Marketing, Blog Marketing and MobileMarketing all vary in terms of the time-specificity of exposure.

Further, most approaches to marketing-mix models try to include all marketingactivities in aggregate at the national or regional level, but to the extent thatvarious tactics are targeted to different demographic consumer groups, theirimpact may be lost. For example, Mountain Dew sponsorship of NASCAR may

be targeted to NASCAR fans, which may include multiple age groups, butMountain Dew advertising on gaming blogs may be targeted to the Gen Y

population. Both of these tactics may be highly effective within the correspondingdemographic groups but, when included in aggregate in a national or regionalmarketing-mix model, may come up as ineffective.

Aggregation bias, along with issues relating to variations in the time-specificnatures of different media, poses serious problems when these models are used inways beyond those for which they were originally designed. As media becomeeven more fragmented, it is critical that these issues are taken into account ifmarketing-mix models are used to judge the relative effectiveness of differentmedia and tactics.

Marketing-mix models use historical performance to evaluate marketingperformance and so are not effective tools to manage marketing investments fornew products. This is because the relatively short history of new products makesmarketing-mix results unstable. Also relationship between marketing and salesmay be radically different in the launch and stable periods. For example the initial

performance of Coke Zero was really poor and showed low advertising elasticity.


38/64

In spite of this Coke increased its media spend, with an improved strategy andradically improved its performance resulting in advertising effectiveness that is

probably several times the effectiveness during the launch period. A typicalmarketing-mix model would have recommended cutting media spend and instead

resorting to heavy price discounting.


39/64

CHAPTER -2 RESEARCH METHODOLOGY


40/64

INTRODUCTION TO RESEARCH METHODOLOGY:

Research can be defined as the scientific search for knowledge, or as any

systematic investigation, to establish novel facts, solve new or existing problems,prove new ideas, or develop new theories, usually using a scientific method. Theprimary purpose for basic research (as opposed to applied research) isdiscovering, interpreting, and the development of methods and systems for theadvancement of human knowledge on a wide variety of scientific matters of ourworld and the universe.

Scientific research relies on the application of the scientific method, a harnessing

of curiosity. This research provides scientific information and theories for theexplanation of the nature and the properties of the world around us. It makespractical applications possible. Scientific research is funded by public authorities,by charitable organizations and by private groups, including many companies.Scientific research can be subdivided into different classifications according totheir academic and application disciplines.

Artistic research, also seen as 'practice-based research', can take form whencreative works are considered both the research and the object of research itself. It

is the debatable body of thought which offers an alternative to purely scientificmethods in research in its search for knowledge and truth.

Historical research is embodied in the historical method. Historians use primarysources and other evidence to systematically investigate a topic, and then to writehistories in the form of accounts of the past.

The phrase my research is also used loosely to describe a person's entirecollection of information about a particular subject.


41/64

DATA COLLECTION APPROUCH

Primary Data:

PRIMARY DATA is data that has not been previously published, i.e. thedata is derived from a new or original research study and collected at thesource, e.g., in marketing, it is information that is obtained directly fromfirst-hand sources by means of surveys, observation or experimentation.Original data compiled and studied for a specific purpose.For example, a structured survey might be conducted for the purpose ofdiscovering current attitudes on a particular topic; raw survey responseswould beprimary data.

Primary source is a term used in a number of disciplines to describesource material that is closest to the person, information, period, or ideabeing studied.

In the study of history as an academic discipline, a primary source (alsocalled original source or evidence) is an artifact, a document, arecording, or other source of information that was created at the timeunder study. It serves as an original source of information about thetopic. Similar definitions are used in library science, and other areas ofscholarship. In journalism, a primary source can be a person with directknowledge of a situation, or a document created by such a person .


42/64

Secondary Data:

It refers to the statistical material which is not originated by the investigator

himself but obtained from some one else's records, or when Primary data isutilized for any other purpose at some subsequent enquiry it is termed asSecondary data. This type of data is generally taken from newspapers,magazines, bulletins, reports, journals etc. e.g. if the data published by RBI oncurrency, National Income, Exports or Imports, is used in some other statisticalenquiry, it will be termed as Secondary data. According to M.M. Blair,"Secondary data are those already in existence for some other purpose than theanswering of the question in hand."

Secondary data is the data that have been already collected by and readilyavailable from other sources. Such data are cheaper and more quickly obtainablethan the primary data and also may be available when primary data can not beobtained at all.

Secondary data is data collected by someone other than the user. Commonsources of secondary data for social science include censuses, surveys,organizational records and data collected through qualitative methodologies or

qualitative research. Primary data, by contrast, are collected by the investigatorconducting the research.

Secondary data analysis saves time that would otherwise be spent collectingdata and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher tocollect on their own. In addition, analysts of social and economic changeconsider secondary data essential, since it is impossible to conduct a new surveythat can adequately capture past change and/or developments.


43/64

RESEARCH METHADOLOGY

Research Type Descriptive and exploratory.

DATA COLLECTION

Primary Data:

Use of Questionnaire

Secondary Data:

Internet

Books

Brochures


44/64

OBJECTIVES OF THE STUDY

To study the different marketing strategy of the coca-cola company.

To study in detail about the promotional strategies of the coca-colacompany.

To identify the customers behavior toward the change in pricestrategy of the company.

To compare the importance of every p in a company. To study the Companys marketing mix strategy. To study in detail about the marketing mix structure of the

company. To identify the various stages involved in the marketing mixprocessor of the company.

To compare the marketing mix of the company to othercompanies.


45/64

LIMITATIONS OF THE STUDY

Scope of the project is limited.

It was difficult to survey.

Limited parameters.

Old age people do not believe in the concept of having soft drinks.

Narrow thinking of middle class people consider soft drinks as not good fortheir health and wealth.

NON-RESPONSE ERROR: It is almost impossible to obtain data from

each & every respondent covered in sample. There are always somerespondents who refuse to give information.

TIME CONSTRAINT- There was time constraint to this project. Theproject has to be completed within 2months.

BUSY RESPONDENT-Many times respondents were so busy that theydidnt give reply. There were some rude replies also.

OTHER REASONS-There was heavy rains during the period of survey. Sothere was many times problem in conducting survey & transportation


46/64

SAMPLING:

Sample is small group of 30 consumers is taken under consideration from total

customer population. This small group represents the total population. In theproject I studied market in Delhi city. As it was impossible to approach allrespondents of city, a sample was selected which represent whole city. Theareas selected were- nirman vihar, vaishali, laxmi nagar metro station area.DATA EVALUATION: All the data collected was not accepted as it wascollected. It was filtered & only relative data is introduced in the report whichhelped in achieving objective of the project


47/64

CHAPTER-3 ANNEXURE


48/64

QUESTIONNAIRE

1.) What is the first brand comes into your mind when you think of soft drink? coca-cola company

Pepsi

Thumps-up

Others

2.) At what extent your customers are influenced by promotions?

Very much

Average Below average

Cant say anything

3.) How do you associate its product or service?

Good for health

Modern

Affordable

Others

4.) Is company being successful without promotion activities?

Yes

No

May be Cant say anything

5.) How your customers are affected by the change in price (service charges)? Very high High Average

Below average


49/64

6.) Where have you seen advertisement for coca-cola company?

Online

TV

Magazine

Newspaper

Other (specify)

7.) Which of these brandss product name are you aware of?

Health drinks

Soft drinks

juices

others

DEMOGRAFIC INFORMATION

8.) YOUR NAME:-

9.) YOUR AGE:-

Under 18 10-20

20-30

30-40

40-50

Above 50

10.) GENDER:-

MALE FEMALE


50/64

CHAPTER-4 DATA ANLYSIS AND

ANALYSIS

1.) What is the first brand comes into your mind when you think of soft drink?


51/64

TABLE 1:-

PARTICULARS NO. OF RESPONDENTS (in %age)

COCA_COLA 40

PEPSI 30THUMPS UP 20

OTHERS 10

010

20

30

40

50

6070

80

90

100

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

coca-cola

pepsi

thumps up

others

Interpretation:From the data collected, we came to know that 40% of the respondedthink of coca-cola,30% respondents think of pepsi,20% of responded

think of thumps up and only 10% respondent think of others when askedfor the soft drinks brands. From this data we came to know that moreresponded like to have coca-cola when they think of soft drink2.) At what extent your customers are influenced by promotions?

TABLE 2:-


52/64


Very much 50

Average 20

Below average 20

Cant say anything 10

0

10

20

30

40

5060

70

80

90

100

1st Qtr 2ndQtr

3rd Qtr4th Qtr

very much

Average

Below average

Can't sayanything

INTERPRETATION:

From the data collected we know that 50% of the responded are very much

influenced by the promotional activity, 20% of the responded are influenced by


53/64

the promotional activities at an average , 20% of responded are influenced by this

below average and10% of the responded cant say anything about the

promotional activities of the company. From the data its clear that more

responded are influenced by the promotional activities andthus I can say that its

promotional strategy is going well.

3.) How do you associate its product or service?

TABLE 3:-


Good for health 20

Modern 45

Affordable

others 5


54/64

0

10

20

30

40

50

60

7080

90

100


Good for health

Modern

Affordable

Other

INTERPRETATION:

From the data collected we came to know that 30% of the respondedconsider companys product good for health, 45% of the respondedassociate company with modern attribute, 20% of responded associatecompanys product affordable and 5% with other attribute. From thedata its clear that more responded consider coca-cola company modernbut not good for health.4.) Is company being successful without promotion activities?

TABLE 4:-


Yes 30No 40

May be 20

Cant say anything 10


55/64

0

10

20

30

40

50

60

7080

90

100


Yes

No

May be

Can't sayanything

INTERPRETATION:From the data collected it came to know that 30% of the responded thinks thatcompany can be successful without promotional activities,40% believe that

company cant be successful without its promotional activities,20% are not sureabout the promotional activity of the company any their answer is may be andfinally 10% cant say anything about its promotional activities

5.) How your customers are affected by the change in price (service charges)

TABLE 5:-


Very high 20

High 30Average 10

Below average 40


56/64

0

10

20

30

40

50

60

7080

90

100


Very high

High

Average

Below average

INTERPRETATION;

From the data collected above 20% of the responded are highly effected by the

change in price in its products, 30% of the responded are also effected highly,10% are effected but on an average and 40% are effected very low.

6.) Where have you seen advertisement for coca-cola company?

TABLE 6;-


Online 30

TV 50

Magazine 15

others 05


57/64

0

1020

30

40

50

60

7080

90

100


Online

TV

Magazin

Others

INTERPRETATION:From the data collected, we find that 30% become aware about the company from

online, 50% gets information from T.V., 15% from magazine, 5% each from

other sources. It is the word of mouth of T.V. that makes aware most of the

customers about coca-cola company.

7.) Which of these brands product name are you aware of?

TABLE 7:-


Health drinks 30Soft drinks 40

Juices 25

others 05


58/64

0

10

20

30

40

50

60

7080

90

100


Health drinks

Soft drinks

Juices

Others

INTERPRETATION:

Out of 30 respondents, 30% respondents know about health drinks, 40% know

about soft drinks and 25% & 05% know abouts juices and others respectively.

This clears that more responded know about soft drinks and company should

promotes its other products also.

8.) Age group of the respondents.

TABLE 8:-


Under 18 50

20-30 3030-40 15

Above 50 5


59/64

0

10

20

30

40

50

60

7080

90

100


under 1

20-30

30-40

above 5

INTERPRETATION;

From the above bar diagram we come to know that 50% of theresponded are under 18, 30% between 20-30, 15% of the responded

between 30-40, 05% are above 50, thus more of the responded comesunder the age group of under 18.


60/64

CHAPTER-5 FINDINGS AND

SUGGESTIONS

CONCLUSION

Marketing mix of Coca-Cola company is very good as it has beeneffectively and efficiently implemented. Consumer finds its productssafe and secure. Company has been able to build a good image in the

eyes of the customers. Its products are not suitable for health consciouspeople. Its pricing strategies are not beneficial in the rural areas becauseof its high charges when compare to other brands of soft drinks. Suchthat company lacks behind because its pricing strategy this p can prove acurse to the company


61/64

FINDING OF THE PROJECT

It is found that the marketing mix of coca-cola company is notcorrect and is not efficiently and effectively implemented.

Price strategies are not much beneficial for current market position. Some of the consumer fined coca-cola company not much

trustworthy.

Coca-cola Company should also focus on other mediums ofpromotions like social events etc.


62/64

Coca-cola Company should bring such products to the marketwhich promotes healthy habits so that customer will get familiar tothose products also.

Coca-cola Company provides products which are costly and are notsuitable for the people who are health conscious.

Coca-cola Company should also focus on other mediums ofpromotions like social events etc.

Coca-cola Company should bring such products to the marketwhich promotes healthy habits so that customer will get familiar tothose products also.

Coca-cola Company provides products which are costly and are notsuitable for the people who are health conscious.

SUGGESTIONS

Coca-cola company need to improve their marketing strategy.

Company should also focus on internet, newspaper etc.

It should try to increase its trustworthiness. It should introduce some new and innovative products to the

market.

It must make sure that all the marketing strategy should beimplemented effectively.


63/64

It should provide more offers and discounts to attract its customers.

It should make more efforts on building its Image in the market.

BIBLIOGRAPHY;

WEBSITES FROM WHERE I HAVE COLLECTED THE DATA:

WWW.COCA-COLA.COM

WWW.WIKIPEDIA.ORG

WWW.GOOGLE.COM

WWW.ASK.COM


64/64

Cocola Company

Documents

Transcript of Cocola Company