Chapter-1

INTRODUCTION

Soft Drinks in India

Euro monitor International's Soft Drinks in India market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Robust growth continues

The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006, with higher volume growth in 2008 than that seen in 2007. The mature sectors of bottled water, fruit/vegetable juice and carbonates saw a dynamic year, with companies refreshing their products brand image and packaging to attract new consumers. Emerging product categories, such as energy drinks and reconstituted 100% juice, saw high double-digit growth rates, as companies increased their products penetration in India. Off-trade volume growth was slightly higher than on-trade volume growth, as convenient on-the-go packaging, company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market.

With the industry back on the upward growth curve, companies refreshed their brands by introducing new and more premium packaging designs, pack sizes and communication campaigns. In 2008, bottled water was especially dynamic, with all the major national brands following the cue of Bisleris rebranding in late 2007. Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults. With naturally healthy becoming a key focus for consumers and manufacturers, fruit/vegetable drinks companies focused their efforts on highlighting their products fresh fruit content and health attributes. Companies put in motion plans to extend their product portfolios to emerging categories such as 100% juice, energy drinks and flavored water.

Domestic players thrive The multinationals Coca-Cola India and PepsiCo India Holdings saw their off-trade value shares of soft drinks in India decline over the review period, as other national and regional players updated their brand portfolios and increased the penetration of their brands in India. Bottled water players, such as Parle Bisleri and Dhariwal Industries, were particularly successful in expanding their consumer base through a concerted effort to increase their manufacturing capacity and move to newer regions within India. Dabur India and Parle Agro benefited from their first mover advantage in being present in highgrowth emerging product categories, such as 100% juice and other non-cola carbonates.

Modern retailing thrives alongside kiranas With companies increasing their spend on below-the-line marketing activities, the ubiquitous kiranas were the beneficiaries of efforts such as branded glass door refrigerators, regional language banners and displays, and the roll-out of on-the-go packaging for carbonates and juice drinks. Supermarkets, which are still something of a novelty in many small cities, continued to attract a combination of regular grocery shoppers and young impulse buyers. Bundling and discount promotions for fruit/vegetable juice and concentrates drove product sampling in supermarkets. Emerging categories, such as energy drinks and RTD tea, received a boost from impulse buyers in supermarkets, while attractive displays and imported products in up market shopping centre introduced consumers to new products, such as sports drinks and flavored water.

Double-digit growth expected With rising consumer affluence and companies tailoring their product designs and marketing specifically to target the young adult population group, the trend of robust double-digit annual volume growth is expected to continue over the forecast period. The foray of leading national players into emerging categories, such as energy drinks and 100% juice will help sustain high growth rates in the future. Competition from the unorganized sector is expected to decline over the forecast period, as the national players make a concerted effort to educate consumers about the health benefits of packaged drinks, and move into markets such as bulk bottled water, which are currently dominated by the unorganized sector.

Chapter-2

Company Profile

Douglas N. Daft was elected chairman, Board of Directors, and chief executive officer of The Coca-Cola Company on February 17, 2000. Mr. Daft is the 11th chairman of the Board in the history of the Company. Mr. Daft, 60, joined the Company in 1969 as planning officer in the Sydney, Australia office. He held positions of increasing

responsibilities throughout Asia and in 1982 was named vice president of Coca-Cola Far East Ltd. In December 1988, Mr. Daft was named president of the North Pacific Division and president of Coca-Cola (Japan) Co., Ltd. He moved to the Company's Atlanta

headquarters in 1991 to assume the responsibility of president of the Pacific Group and in 1999 his responsibilities were expanded to include the Company's Africa

Group, and Schweppes Beverage Division, as well as the Middle and Far East Group. Mr. Daft was elected president and chief operating officer of The Coca - Cola

Company in December 1999. He serves on the boards of Sun Trust Banks, the Boys & Girls Clubs of America, Catalyst, the CERGE-EI Foundation(Center for Economic Research and Graduate Education - Economics Institute) in the Czech Republic, the Lauder Institute for Management and International Studies at the University of International Business Leaders Forum, the

Pennsylvania, the Prince of Wales

Grocery Manufacturers of America, the British - American Chamber of Commerce, the G100, the Woodruff Arts Center, the Commerce Club, and the McGraw-Hill

Companies. Mr. Daft is a trustee of Emory University, the American Assembly and the

Center for Strategic & International Studies. He is also a member of

The Trilateral

Commission, The Business Council, and The Business Round table. Mr. Daft received a bachelor's degree in mathematics from the University of New England and a postgraduate degree in administration from the University of New South Wales. He

holds an honorary doctorate in international law from Thunderbird, The American Graduate School of International Management.

History

Coca-cola originated in Atlanta, Georgia, on May 8, 1886. Pharmacist Dr. J.S.Pemberton stirred up a fragment caramel colored syrup in a three legged brass kettle in his backyard and carried a jug of his formulation down the street to Jacobs pharmacy. That same day, the new product made its debut as a soda fountain drink for five cents a glass, when carbonated water was mixed with the new syrup, refreshment history was made! Thinking that two Cs would look well in advertisement Dr. Pemberton suggested the name & calligraphic the famous trademark in a unique script. On May 29th 1886, the first newspaper advertisement appeared in the Atlanta Journal which proclaimed Coca-cola was delicious and refreshing & the theme continues to echo today.

Following the death of Dr. J.S.Pembeston in 1888, all his remaining rights to the product were purchased by G.Candler, a druggist & Atlanta Businessman. Mr. Candler recognized great potential in Coca-cola & went on to acquire compete control for 2300 in 1891. As Candlers strategy was to make Coca-cola available every where & to trigger desire as often & in as many ways possible. This strategy is still used today. United States patent officer on January 31st 1893, and has been renewed periodically. That same year, the first dividend was paid to the shareholders.

Non-alcoholic soft drink beverage market can be divided in to fruit drinks & soft drinks. Soft drinks can be further divided into carbonated & non-carbonated drinks. Coca, lemon & oranges are carbonated drinks, while mango drinks come under non-carbonated category. The soft drinks market till early 1990s was in hands of domestic players like Campa, Thumbs up, Limca etc. But with opening up of economy & coming of MNC players Pepsi & Coke the market has come totally under their control, while worldwide Coke is leader in carbonated drinks market in India. It is Pepsi which scores one coke but this difference is fast decreasing (Courtesy huge ad-spending by both the players). Soft drinks are available in glass bottles, aluminum cans & PET bottles for home consumption.

The cola industry has phenomenal possibilities for rocketing profit growth in spite of the sign of relief heaved by the manufacture at the abrupt sensational termination of coca cola monopoly the tastes of cola is by no means extinguished the coca. Cola have a status symbol to it..., generated by the sub standard, penetrated, advertising and extensive distribution network.

Total soft drink segment is growing at the rate of 10% per year still if international standard area considered the per capita consumption of three serving in rock bottom, less than even our neighbors Pakistan and Bangladesh, where it is four more as much. So with kind of a market potential coke entered in India in 1991 after the permissions of setting up Britico Food company to coke was granted by the government in Pune in 1992 the plant was established for is deducted then the bottle are taken out of the line and Cleaned again or rejected.

The most important step is the mixing of drink concentrate dissolved in the soft water the sugar syrup at the same time. Carbon dioxide is passed in the drink to produce a fizz. After the crowing of the bottle the crown contains the manufacturing data batch number and Time.

Know About their Global Bottling System

Today, our products reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by The Coca-Cola Company, our global bottling system packages and markets products, then distributes them to more than 14 million retail outlets worldwide.

The Coca-cola is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for our consumers.

Coca-cola :- One of the Worlds Largest Beverage Company

The coca-cola company exists to benefit, refresh everyone it touches, for more than century they have been fulfilling this promise. Since its beginning in spirit of 1886, Coca-cola has grown to become the most recognized trademark in history. Operating in more than 195 countries worldwide, Coke is the most popular beverage on earth & is enjoyed over 773,000,000 times daily. The Coca-cola is the worldwide leading manufactures, marketer & distributor of non alcoholic beverage concentrates & syrups, with world headquarters in Atlanta, Georgia. The Cos & its subsidiaries enjoy nearly 31000 people around the world. Syrups, concentrates & beverages bases for Coke. The Coke flagship brand & over 230 other

company soft drink brands are manufactured & sold by the Coca Cola Cos & its subsidiaries in nearly 200 countries around world. While much of the world has changed since 1886, with the old giving way to the new at almost daily strokes, what has withstood the test and taste of time, binding the young and old to enjoy their moments of simple pleasure and eternal joy is the magic of Coke. And this year, consumers the world over will reach for products of The Coca-Cola Company more than a billion times every single day. It is one of the worlds largest beverage companies, which has come a long way since its modest beginnings more than a century ago...

Coke Advertisements: - Its the Real Thing

Advertising has played an important role in the success of our products since our first newspaper ad in 1886, which read, "Coke Delicious! Refreshing! Exhilarating! Invigorating!" The Company uses advertising to trigger desire as often and in as many ways as possible. Throughout the years, slogans for Coke have always been memorable. Here are some highlights:

2000 - COCA-COLA ENJOY 1993 - ALWAYS COCA-COLA 1990 - CANT BEAT THE REAL THING 1989 - CANT BEAT THE FEELING 1986 - RED, WHITE AND YOU 1982 - COKE IS IT 1976 - COKE ADDS LIFE 1971 - ID LIKE TO BUY THE WORLD A COKE 1969 - ITS THE REAL THING 1963 - THINGS GO BETTER WITH COKE

1959 - BE REALLY REFRESHED 1944 - GLOBAL HIGH SIGN 1942 - ITS THE REAL THING 1936 - ITS THE REFRESHING THING TO DO 1922 - THE PAUSE THAT REFRESHES Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high standard of quality for other products around the world. The Company recognizes that Coca-Cola belongs to the billions of consumers in every corner of the globe who have chosen it as their favorite soft drink. Their advertising reflects that special relationship between consumers and the simple moments of pleasure they have come to associate with Coca-Cola.

Quality is their Highest Business Objective:-

The ultimate objective of our business strategy is to increase volume, expand our share of worldwide non-alcoholic ready to drink beverages sales, maximize our long term cash flows & create economic value added by improving economic profit.

The Coke system has more than 16 million customers around the world that sell or serve our products directly to consumers. We keenly focus on enhancing value for these customers & helping them grow their beverages businesses. We strive to understand each customers business & needs, weather that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market.

There are nearly 6 billion people in the world who are potential consumers of our companys products. Ultimately our success & our mission depend on our ability to satisfy more of their beverage consumption demands and our ability to add value for our

customers. We achieve this when we place the right products in the right markets at the right time.

Strong cash flow position, which can be derived from consistent performance and lower investment requirements of average earnings per share growth of approximately 154. Over the long term capital expenditure will be stable to declining from historical trends over the next 5 years, as the investments in the bottling side of the business will be reduced. Maintain the net debt to net capital ratios that have been shown historically.

The Coke exists to benefit and refresh everyone it touches. Quality is more than just something we taste or see or measure. It shows in our every action. They relentlessly strive to exceed the world's ever-changing expectations because keeping the Quality promise in the marketplace is their highest business objective and their enduring obligation.

According to Coke , most of the Consumers across the globe choose their brand of refreshment more than a billion times everyday because coke is:

The Symbol of Quality Customer and Consumer Satisfaction A Responsible Citizen of the World

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Chapter-3

Coca cola products

Soft drinks Our dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The CocaCola Company are both icons and innovators in the beverage industry. Brand Name: - COCA-COLA Drink Type: - SOFT DRINKS

Coca-Cola is one of the most recognizable brands around the globe. Having established a leading brand that fascinates consumers all over the world, Coca-Cola is widely regarded as one of the most booming organizations having achieved huge branding success. Achieving Brand Reinvention A key element of Coca-Colas success can be certainly attributed to its branding strategies. Since 1866 that it started its operations until today that is a powerful, globally known corporation, the companys brand development strategies constantly raise consumer interest and remain highly competitive. Having achieved impressive brand loyalty through continuous reinvention of its brand and focus on brand enhancement, Coca-Cola is, without any doubt, the leading non-alcoholic beverage company in the world.

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Focusing on Consumer Sophistication Its branding strategies focus on the changing market realities and consumer sophistication that requires different approach and brand redesigning. In the early years, the company focused on making the brand affordable, available and acceptable in the aim of establishing a brand that would be instantly recognizable and highly appreciated in consumers minds. Over the years, and in an effort to adjust its branding strategies to the new consumer demands, Coca-Cola focused on building brand identity by offering value for price, differentiation to meet consumer preferences (preference), and pervasive penetration. Today, by testing at least 20 different brands on a monthly basis on a sample of 4,000 consumers, Coca-Cola is a corporation with strong brand identity and brand image. Evaluating Consumer Response Besides, the company constantly assesses consumer response to its brands in order to evaluate consumer perception and find out what consumers believe about its products. Consumers relate particular brands with particular symbols and promises that need to be met. Similarly, Coca-Cola is related to a particular level of customer satisfaction that is determined by the collective memory of its target audience. Achieving Strategic Consensus Another important aspect of Coca-Colas branding strategies is the fact that strong brands make great sales and increase their revenues. However, Coca-Cola has taken the extra mile by building a brand that has managed to increase sustainable sales by attracting and retaining the best human capital and investing in employee relations and customer relation management. This has enabled the corporation not only to achieve strategic consensus and alignment at all organizational levels, but also to trigger positive feelings in consumers minds. Building Brand Loyalty Finally, strong brand image is related to brand loyalty. The more consumer demands are satisfied, the more consumers are attached to a brand and retained by default. Also, Coca12

Colas brand image entails the purchase frequency that is boosted by effective advertising campaigns and marketing strategies. In doing so, the corporation expands its customer base and enhances customer loyalty by meeting customer needs and raising customer satisfaction. Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually every part of the world.

INDIAN PRODUCT RANGE

Flavor Cola

Ingredients

Pack

Product Coke, Thumsup

Company Coca-Coal

Cola Flavor 200Ml. carbonated water 300Ml. sugar 500Ml. 1 Litre 1.5 Litre 2 Litre Orange Flavor + 200Ml. Carbonated 300Ml. Water+ Sugar 500Ml. 1 Litre 1.5 Litre 2 Litre

Pepsi Fanta

Pepsi Coca-Cola

Orange

Mirinda

Pepsi

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Fruit Juice

Mango Treated sugar

Pulp+ 250 ML water+

Maaza Slice Limca

Coca-Cola Pepsi Coca-Cola

Cloudy Lemon

Lemon Flavor + 200Ml. Carbonated 300Ml. Water+ Sugar 500Ml. 1 Litre 1.5 Litre 2 Litre Lemon Flavor+ 200Ml. Carbonated Water 300Ml. + Sugar 500Ml. 1 Litre 1.5 Litre 2 Litre

Mirinda Lemon Sprite

Pepsi Coca-Cola

Clear Lemon

7Up Dew

Pepsi

Conclusion In conclusion, Coca-Cola is a successful product, not only because it has built a recognizable logo and brand name, but mostly because it has managed to position its brand in a way that takes advantage of all the elements of marketing mix, i.e. product, place price and promotion/distribution. In doing so, it achieves to develop a brand personality and distinguish itself from competition, while offering consumers a clear view of its brand values. This leads to increased brand loyalty and satisfaction. Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime, Cola Lime, Cola Orange and Cola Raspberry.

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Chapter-4

CUSTOMER PREFERENCES

DEFINITION OF CUSTOMER Customer is a value - maximizer, within the bounds of search costs and limited knowledge, mobility, income and form an expectation of value and act upon it. Whether or not the offer lives up to the value expectation affects both satisfaction and repurchase probability. Gandhi's definition of customer can be given as

1) A customer is not an outsider to our business. He is definite apart of it. A customer is not main an interruption purpose of our work. of He is the it.

2) A customer is doing us a favor by letting us serve him. We are not doing any favor. 3) A customer is not a cold statistic; he is a flesh & blood human being with feelings and emotions like our own.

4) A customer is not someone to argue or match wits with. He deserves courteous and attentive 5) A customer is not dependent on us. We are dependent treatment. on him.

6) A customer brings us his wants. It is our job to handle them properly and profitablyboth to him and us.

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Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. Note that preferences are independent of income and prices. Ability to purchase goods does not determine a consumers likes or dislikes. One can have a preference for Porsches over Fords but only have the financial means to drive a Ford. Individual consumer has a set of preferences and values whose determination is outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes, among a plethora of other factors. The measure of these values in this model for a particular good is in terms of the real opportunity cost to the consumer who purchases and consumes the good. If an individual purchases a particular good, then the opportunity cost of that purchase is the forgone goods the consumer could have bought instead. We develop a model in which we map or graphically derive consumer preferences. These are measured in terms of the level of satisfaction the consumer obtains from consuming various combinations or bundles of goods. The consumers objective is to choose the bundle of goods which provides the greatest level of satisfaction as they the consumer define it. But consumers are very much constrained in their choices. These constraints are defined by the consumers income, and the prices the consumer pays for the goods. An indifference curve is a collection of all commodity bundles which provide the consumer with the same level of utility. The indifference curve is so named because the consumer would be indifferent between choosing any one of these commodity bundles. Consumers face trade-offs in their purchase decisions, since their income is limited and choices are numerous. In order to make choices, consumers must combine budget constraints (what they can afford), and preferences (what they would like to consume). A budget constraint, means what a consumer can purchase is constrained by income. The slope of the budget constraint measures the rate at which one consumer can trade off one

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good for another, and the relative prices of the two goods. Budget constraints are determined by both the income of the consumers, and the relative prices. Properties of Indifference Curves 1. Higher indifference curves are preferred to lower ones, since more is preferred to less (non-satiation). 2. Indifference curves are downward sloping. If the quantity of one goods is reduced, then you must have more of the other good to compensate for the loss. 3. Indifference curves do not cross (intersect), since this would imply a contradiction. 4. Indifference curves are bowed inward (in most cases). The slope of indifference curves represents the MRS (rate at which consumers are willing to substitute one good for the other). People are usually willing to trade away more of one good when they have a lot of it, and less willing to trade away goods which are in scarce supply. This implies that MRS must increase as we get less of a good. DEFINING CUSTOMER VALUE AND SATISFACTION:-

Customer Value:-Customers will buy from the firm that they see as offering the highest perceived value. Customer perceived value (CPV) is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives. The customer delivered value has two components total customer value and total customer cost. Total Customer Value is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. Total Customer Cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering.

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Customer satisfaction: The provision of goods or services which fulfill the customer's expectations in terms of quality and service Customer Satisfaction:-

Customer satisfaction is more a function of how closely your customers' experiences with your business conform to their expectation." Customer means that the customer's needs are met, products and services are satisfactory and customer experience is positive.

Kotler (1997) defines customer satisfaction as follows- "satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a product is perceived performance (or outcome) in relation to his or her expectations." It portrayed the idea of measuring how satisfied customers are with the organization's efforts in a market place. Customer satisfaction measures the following variables:

1) product 2) service 3) relationship 4) price 5) convenience 6) brand image 7) brand association 8) total customer experience

Some more definitions of Customer satisfaction can be given as:Customer satisfaction: The provision of goods or services which fulfill the customer's expectations in terms of quality and service

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Customer satisfaction: - A state that results when an exchange meets the needs and expectations of the buyer.

Customer Satisfaction: - Retailers know that satisfied customers are loyal customers. Consequently, retailers must develop strategies intended to build relationships that result in customers returning to make more purchases.

Customer satisfaction: - The degree to which there is match between the customer's expectations of the product and the actual performance of the product.

Customer Expectations: - The buyers form their expectations from past buying experience, friends and associates advice and marketers and competitors information and promises. If marketers raise expectations too high, the buyer is likely to be disappointed. However, if the company sets expectations too low, it wont attract enough buyers (although it will satisfy those who do buy). Some of todays most successful companies are raising expectations and delivering performance to match. These companies are aiming for TCS- Total Customer Satisfaction. PRODUCT LIFE CYCLE Product Life Cycle (PLC) is a term used to describe individual stages in the life of a product. Product life cycle is an important aspect of conducting business which affects strategic planning. Product life cycle can be divided into several stages characterized by the revenue generated by the product.

Product life cycle is very similar to a life. A living being is first born (introduction). Then it grows through its youth (growth) to become an adult (maturity). When it gets old, it declines both mentally and physically (decline), after which it eventually dies.

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Why is it important to know the product life cycle? Any for-profit business is constantly seeking ways to grow future cash flows by maximizing revenue from the sale of products and services. Positive cash flow allows a company to invest in development of new products and services, to expand production capabilities, to improve its workforce, and so on. It is most companies' goal to acquire key market share and become a leader in its respective industry. A consistent and sustainable cash flow from product that is well established and stabilized is the key to any long-term investment. And knowing the product life cycle can help with this. What are the trends in product life cycle? Short... One most observable trend is that product life cycles are becoming shorter and shorter. This is given mostly by ever-increasing competition (seeMichael Porter's Five Forces model for more on competition). While a manufacturer of pots and utensils faced competition only from another manufacturer in the same city hundreds of years ago, a pot manufacturer these days faces competition from many companies on the other side of the globe in addition to other local manufacturers. Everyone is trying to come to the market with innovations. Revitalization... Many products in mature industries are revitalized by product differentiation and market segmentation. It is not uncommon that companies try to find new niches and market segments when they see their product is about to enter the Decline phase. Companies are becoming very flexible in their ability to reassess product life cycle costs and revenues. Longer operating life... Even though product life cycles shrink, the operating life of many products is becoming longer. While a 10 years old car would be considered a wreck in 60's, today's cars are relatively very durable and their life time is extending. Companies have to take product 22

operating life into account and adjust their planning accordingly. Companies are attempting to optimize product life cycle revenue and profits through warranties and upgrades to existing products.

Introduction. The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Growth Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilize. Maturity Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilize. Producers attempt to differentiate products and brands which is a key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and uses a greater variety of media.

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Decline At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting. Problems with Product Life Cycle. In reality very few products follow such a prescriptive cycle. The length of each stage varies enormously. The decisions of marketers can change the stage, for example from maturity to decline by price-cutting. Not all products go through each stage. Some go from introduction to decline. It is not easy to tell which stage the product is in. Remember that PLC is like all other tools. Use it to inform your gut feeling. Product Life Cycle (PLC) is a term used to describe individual stages in the life of a product. Product life cycle is an important aspect of conducting business which affects strategic planning. Product life cycle can be divided into several stages characterized by the revenue generated by the product.

Product life cycle is very similar to a life. A living being is first born (introduction). Then it grows through its youth (growth) to become an adult (maturity). When it gets old, it declines both mentally and physically (decline), after which it gets old, it declines both mentally and physically (decline), after which it eventually dies. Why is it important to know the product life cycle? Any for-profit business is constantly seeking ways to grow future cash flows by maximizing revenue from the sale of products and services. Positive cash flow allows a company to invest in development of new products and services, to expand production capabilities, to improve its workforce, and so on. It is most companies' goal to acquire key market share and become a leader in its respective industry.

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A consistent and sustainable cash flow from product that is well established and stabilized is the key to any long-term investment. And knowing the product life cycle can help with this. ADVERTISING Advertising has become increasingly important to business enterprises both large and small. Outlay on advertising certainly is the voucher. Non-business enterprises have also recognized the importance of advertising. The attempt by army recruitment is bases on a substantial advertising campaign, stressing the advantages of a military career. The health department popularizes family planning through advertising.

Labor organizations have also used advertising to make their viewpoints known to the public at large. Advertising assumes real economic importance too. Advertising strategies that increase the number of units sold stimulate economies in the production process. The production cost per unit of output is lowered. It in turn leads to lower prices. Lower consumer prices then allow these products to become available to more people. Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive without advertising. In short, advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life.

Advertising has become an important factor in the campaigns to achieve such societaloriented objectives such as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse. Though in India, advertising was accepted as a potent and recognized means of promotion only 25 years ago, its growing productive capacity and output necessitates the finding of consumers and advertising plays an important role in this process. Advertising helps to increase mass marketing while helping the consumer to choose from amongst the variety of products offered for his selection. In India, advertising as a profession is in its infancy.

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Every product has an image. The consumer tries to consume a brand which has the maximum fit with his/her own personality/image. The celebrity endorser fits in between these two interactions, where he tries to bring the image of the product closer to the expectation of the consumer, by transferring some of the cultural meanings residing in his image to the product. The general belief among advertisers is that brand communication messages delivered by celebrities and famous personalities generate a higher appeal, attention and recall than those executed by non-celebrities. The quick message-reach and impact are all too essential in todays highly competitive environment.

RELATIONS WITH CUSTOMERS

Key to stability in today's dynamic marketplace is in forging long-term relationships with customers. Technology is changing at such a fast pace today that by just offering a service or a product a business wont be at an advantage for too long. A customer-facing business is one in which the customer can demand and receive what he wants. Customer Relationship Management Definition: Customer Relationship Management (CRM) is a business strategy to identify, cultivate, and maintain long-term profitable customer relationships. It requires developing a method to select your most profitable customer relationships (or those with the most potential) and working to provide those customers with service that exceeds their expectations. There are many different facets of CRM for every business:

Identifying qualified leads and gaining new customers Closing sales more effectively and efficiently Allowing customers to perform business transactions quickly and easily Providing service and support following a sale

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Customer Relationship Management (CRM) refers to the methodologies and tools that help businesses manage customer relationships in an organized way. For small businesses, customer relationship management includes: - CRM processes that help identify and target their best customers, generate quality sales leads, and plan and implement marketing campaigns with clear goals and objectives; - CRM processes that help form individualized relationships with customers (to improve customer satisfaction) and provide the highest level of customer service to the most profitable customers; - CRM processes that provide employees with the information they need to know their customers' wants and needs, and build relationships between the company and its customers. Customer relationship management tools include software and browser-based applications that collect and organize information about customers. For instance, as part of their CRM strategy, a business might use a database of customer information to help construct a customer satisfaction survey, or decide which new product their customers might be interested in. CRM; sometimes called customer service management.

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Chapter-5

Marketing Research:-

It is a function that links the consumer, customer & public to the marketer through information. It is used to identify & define marketing opportunities & problems; to generate, refine & evaluate marketing actions; to monitor marketing performance & to improve understanding of marketing process.

Marketing researchers engage in wide varieties of activities, ranging from market potential & market share study, to assessment of customer satisfaction & purchase behavior, to study pricing, product, distribution & promotion activities.

A company can conduct marketing research in its own research department or have some or all of its done outside. Whether a company uses outside firms depends on its own research skills & resources. Although most large companies have their own market research department, they often use outside firms to do special research task or special studies. A company with no research department has to but the services of research firms.

The Value of Information Information can be useful, but what determines its real value to the organization? In general, the value of information is determined by:

The ability and willingness to act on the information. The accuracy of the information. The level of indecisiveness that would exist without the information. The amount of variation in the possible results. The level of risk aversion. The reaction of competitors to any decision improved by the information.

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The cost of the information in terms of time and money.

Marketing Research Process:-

The market research process consist of 4 steps:-Defining the problem & Research objective, developing the research plan, Implementing the research plan & Interpreting & Reporting the findings.

Defining the problem & Research objective objective Developing the Research plan for collecting the information

Implementing the Research plan Collecting & Analyzing data

Interpreting & reporting the findings

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Rationale of the research

This report attempts to study the marketing mix keeping in mind the current market situation. Besides, this report also studies the customer feedback about the coca cola. Thus it can be said that there are two broad goals of the research i.e. to study the preferences for coca cola as a whole and other to create a top of mind awareness for coca cola. The research work was done through the collection of primary data and secondary data by a common questionnaire through the market survey technique. Thus; based on our research, we have made some conclusions and suggestions to make the performance of coca cola amongst all players better. o As cola drinks are one of the largest used beverage, it will make us clear that whether the customers are really satisfied with the products or not and what kind of customer relationship does company prefer with its customers. o With the help of this project we will be able to draw the clear cut picture of consumers choices and preferences amongst coca cola drinks and its other substitute products o This project will help us to understand the organization holistically. Like what the organization all about and what are its divisions and how does it operate its functions?

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Chapter-6

Research Objective

OBJECTIVE OF THE STUDY To study the consumers preferences for Coca Cola. To study the market potential of Coca cola. To know the percentage of males and females are aware about coca cola. To know which brands advertisement mostly people have seen. To know the reason to buy cola drinks. To know why was the advertisement being noticed by the consumer? To create a top of mind awareness about COCA COLA by providing the information to consumers.

Provide an opportunity to Coca cola to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market.

Will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers.

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Chapter-7

Research Methodology

In this report description research method is considered, which is to collect data from extensive market surveys. Going directly to the market & asking customers and consumers about their beliefs & attitudes about the company and its brand, their experiences with the company, their interest in getting directly linked with the company.

Asking for the delight, if any, they have received from the company or if they have any dissatisfaction and misconception about the company and clearing their doubts henceforth.

Hence this method of direct interaction with the customer group & the success of this method depend up on the accuracy of the information recorded by the surveyor.

The findings of this study are based on the survey conducted by us in areas of east delhi and Ghaziabad.

Research Design:-

The design which indicates the method of research i.e. Method of information gathering research instrument used.

Data Collection:-

The data collection is a long & comprehensive process & requires systematic collection of data about some groups of people or object, the quality of the data will greatly effect the conclusion and hence utmost importance must be given to this process and every possible precaution should be taken while gathering the data and assembling the facts.

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Any research employed is a mixture of primary and secondary data.

Primary Data Collection:-

The Primary data was collected through both participative & non-participative methodsthe technique instruments, which were used are: Questionnaire Personal Interview method is used so that consumers can talk about their problems freely Direct Personal Observation

Types of Research:-

The study has been descriptive in nature which includes surveys & fact finding enquiries of different kinds. The major purpose of this study is the description of the affairs as it exists at present. There has been less control over variables. The things reported in project report include only that which has actually happened & what are happening. The methods of study include comparative & correlation.

Research Instruments:-

Questionnaire is one of the instruments used for survey. Questionnaire consist of set of questions presented o respondents for their answers. There are two sets of questionnaires used & they are:-

Questionnaire consists both the open ended questions that allow respondents to answer in their own words and also closed ended questions that pre specify all the answers.

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Sampling Method:-

The method of sampling adopted for research is convenience sampling. Convenience sampling is one chosen purely for expedience i.e. items are selected because they are easy & cheap to find & measure. This sampling method help understand the range of variability of response on the subject area.

Sampling Size :-

We have taken the sample size of 150 people for the research purpose.

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Chapter-8

DATA ANALYSIS

GENDER OF THE CONSUMER

49%

51%

male female

Fig 1

Out of 150 consumers, 51% are males and only 49% are females.

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Q-1 Have you ever tasted coca cola drinks?

100%
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Male Female

Yes

No

88% of the male and 97% of the female candidate said that they have tasted coca cola drinks. Remaining 12% of the male and 3% of the female candidate replied negatively.

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Q-2 how frequently do you consume cold drink in a week?

70% 60%

50%
percentag40% e 30% 20% 10% 0% 0-2 times 3-5 times more than 5
Male Female

20% of male and 30% of female consumes coke 0-2 times in a week. 65% of the male and 45% of female candidate consumes coke 3-5 times a week. 15% of the male and 25% of female candidate consumes coke more than 5 times a week.

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Q3- have you seen coca cola drinks add?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no
Male

Female

93% men and 98% women have seen the advertisements. 7% of the male and 2% of the females gave a negative response to the question.

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Q-4 which drinkss advertisement you remember the most?

70% 60% 50% 40% 30% 20% 10% 0% coke fanta

Male

sprite
Female

limca

32% men and 61% women prefer coke out of all drinks of coca cola. 69% men and 24% women prefer fanta out of all drinks of coca cola. 19% men and 16% women prefer sprite out of all drinks of coca cola. 21% men and 27% women prefer limca out of all drinks of coca cola.

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Q-5 what attracted you the most in the advertisement and caught your interest?

70% 60% 50% 40% 30% 20% 10% 0% creativity message

Male

Female

69% men and 46% women remember add because of the creativity and new concept. 51% men and 54% women remember the ads because of the person promoting or advertising the product. 16% men and 11% women remember the ads because of the message it gives. 20% men and only 9% women remember the ads because of the logical reason behind it.

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Q-6 what is the reason you choose coca cola drinks?

70%
60% 50% 40% 30% 20% 10% 0% easy avlb. taste price
Male Female

________________________________________________

58% men and 64% women choose cola drinks as they are easily available. 65% men and 46% women go for the taste element while choosing their drink. 2% men and 5% women go for the brand and its name. However, price is a factor for 30% men and 21% women.

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Q7- Which coca cola drink you buys most?

70%

60%
50% 40%
Male

30% 20%

Female

10%
0% coke fanta sprite limca

70% men prefer coke while just 36% women choose coke. 50% of women chose fanta and 14% men go for it. 18% men took sprite and 16% women. Limca is again chosen by 11% men and only 6% women.

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Q-8 How will you rate the product?

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Excellent Good Average Bad

Male Female

________________________________________________

5% of the male and 11% of the female candidate rate the product as excellent. 42% of the male and 50% of the female candidate rate the product as good. 42% of the male and 33% of the female candidate rate the product as average. 11% of the male and 6% of the female candidate rate the product as bad.

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Q-9 Do you feel any difference between coke& other substitutes available in the market such as Pepsi, dew etc.?

70% 60% 50% 40%

Male

30%
20% 10% 0% Yes No Indifferent

Female

63% of the male and 67% of the female said that they were able to feel difference between coke and other substitutes. 16% of the male and 11% of the female said that they were not able to feel difference between coke and other substitutes. 21% of the male and 22% of the female said that they were indifferent between coke and other substitutes.

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Q-10 why do you prefer cola drinks over its other drinks?

70% 60% 50% 40% 30% 20% 10% 0% Brand

Male

Taste
Female

Others

38% Male and 28% Female considers Brand name while choosing the cold drink. 33% Male and 61% Female considers Taste while choosing the cold drink. 8% Male and 0% Female considers other while choosing the cold drink.

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Q-11 Do you consider that product is safe for your health?

60% 50% 40% 30% 20% 10% 0% Yes No Can't Say

Male Female

21% of the male and 22% of the female considered the product to be safe for health. 42% of the male and 56% of the female considered the product to be hazardous for health. 37% of the male and 22% of the female cant tell whether the product is safe for health or not.

Q-12 Are you satisfied with the product? 46

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Can't say
________________________________________________
Male Female

50% of the male and 77% of the female said that they were satisfied with the product. 29% of the male and 11% of the female said that they were not satisfied with the product. 21% of the male and 22% of the female said that they cant tell whether they are satisfied or not with the product.

Chapter-9

47

SWOT ANALYSIS
COKE is most popular amongst its users mainly because of its TASTE, BRAND NAME, INNOVATIVENESS Thus it should focus on good taste so that it can capture the major part of the market.

Strengths: Superior market logistics makes coke penetration in market much faster and frequent than other soft drinks. Effective and efficient salesman Well established customer links Healthy financials

Weaknesses: Multi channel Conflicts Delay in redresses of grievances of retailers

Opportunities: Almost every man on this earth is a potential consumer & if you give people beverages they want it at a good (cheap) price, there is no limit to how much they consume.

Threats: Strong Competitors

Chapter-10

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CONCLUSION AND FINDINGS

61% population chooses cola drinks because of their easy availability and almost 50% go for its good taste.

Mostly consumers remember the advertisement because of the frequency of add and brand ambassadors, creativity.

It is important to retain the customer by providing them with continuous improvements and variety pf product. This is easily seen in such a large variety of drinks that coca cola provides.

Maximum of the public feels difference b/w coke and other substitutes.

An average of 46% of the people considers the product as unsafe for their health.

Since 97% of the sample surveyed was females who have taste coke, it means it is more popular among females.

An average 55% of the sample population consumes coke 3-5 times a week.

An average of 45% and 36% of population surveyed as good and average respectively whereas only 8% found it excellent.

An average of 65% of the sample surveyed is satisfied with the product.

The product should be checked for any harmful chemicals. It should not contain any pesticides or other chemicals.

Chapter-11

49

Limitations of the study

The sample size of customers prospects is fairly small & consistent conclusions cannot be drawn on the information provided.

Satisfaction being a relative term cannot be much commented on as it varies from individual to individual and only be measured if the respondent has also experienced the service of a similar organization in a similar sphere.

One major constraint was the small sample size as it may lead to slight verification in the end result.

And like any other research the limitation of personal bias of respondents limits the scope of the study.

A few customers were either quite reluctant to part with their precious time or had problems in attaching weights aid emphasis to different attributes. Time frame This survey was conducted within the limited time frame of 2 weeks.

Customers in refinance cases were in direct contact with the dealers and were most bothered with getting weights the delivery of the car rather than handling the delays in availing the finance as it did not directly affect them.

There is bound to be a subjective bias in the results because of inconsistency and selective perceptions about the opinion of the respondents.

Chapter- 12

50

RECOMMENDATIONS

On the basis of above study following suggestions can be given:

Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer. The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel. The company should focus to bring some more flavors and variety of schemes rather then bring second and repeat same old one. It is always better to be first than being better. The company must be aware of and keep at least the latest knowledge of its primary competitors in market and try to make a perfect anticipated efforts to meet the same The company should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole. The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from The market and try to solve it without any delay to establish its own good credibility.. The visibility of any product plays an important role in making the customer, aware about it and is vital for the growth and development of any product. For their advertisement they can also introduce a brand ambassador, because most of the consumers remember advertisement because of their brand ambassador. A strong watch should be kept on distributors also, because in some cases they are found to be cheating the retailers and affecting the goodwill of the BRAND. The product should be checked for any harmful chemicals. It should not contain any pesticides or other chemicals.

Bibliography:51

Books:a) Kothari C.R, Research Methodology & Techniques, 2nd edition, New Delhi wishwa Prakashan Pvt. Ltd. 1997 b) Kotler Philip, Marketing Management, 11th New Delhi Prentice Hall of India Pvt. Ltd. 2003

c) Cooper Donald R. & Shindler Pamela S, Business Research Methods

d) Tata McGraw-Hill Edition Eighth.

e) Schiffman Leon G. & Kaunk Leslie Lazar, Consumer Behavior Pearson

Education, Eighth Edition. f) Marketing Management Ram swami & Namakumari g) Statistical Methods S.P.Gupta

Websites:-

a) www.cocacola.com b) www.cocacolaindia.com

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