Coca Cola Industry Internship Report 151pz

A PROJECT ON “A STUDY ON HORIZONTAL EXPANSION OF RETAIL STORES AND CONSUMERS PREFERENCES FOR COCA COLA” SUBMITTED TOWARDS FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (Approved by AICTE, Govt. of India)

(Equivalent to MBA) ACADEMIC SESSION 2011-2013

Under the Guidance of: Prof. Dr. Madhavi Pandya Marketing & Communication SSIM

Submitted By: MANASH BHUSHAN BISWAS ROLL NO. – M6--28

SIVA SIVANI INSTITUTE OF MANAGEMENT NH—7, KOMPALLY, SECUNDERABAD – 500014 ANDRA PRADESH INDIA TEL: +91-40-27165450/54, 65457236/37, FAX: +91-40-27165452 WEBSITE: www.ssim.ac.in

ACKNOWLEDGEMENTS

I am highly indebted to my project mentor Prof. Dr.

Madhavi

Pandya for his continuous , supervision motivation and guidance throughout the tenure of my project in spite of his hectic schedule who truly remained driving spirit in my project and her experience gave me the light in handling research project and helped me in clarifying the abstruse concepts, requiring knowledge and perception, handling critical situations and in understanding the objective of my work. I would also like to express my heartiest thanks to all the respondents who took time for answering my questions.

MANASH BHUSHAN BISWAS

PREFACE Market provides a key to gain actual success only to those brands which match best to the current environment i.e. which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide opportunity plus sufficient amount of products for sales in the coming next financial year. This report introduces study of consumer’s preferences for COCA COLA. After going through a detail analysis of market behavior and future prospect, it may also 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 of KOLKATA, BARRACKPORE AND KHARDAH. The study report will also provide an opportunity to its market potential business areas, products& services are to be offered by the company to the customers. Marketing Division of COCA COLA has to keep in mind various factors specially while preparing plan for marketing its product or services. Detail description along with analysis of surveyed data is being presented in this report.

TABLE OF CONTENTS Introduction……………………………………………………………………………………......5 Executive summary………………………………………………………………………………..5 Company Profile………………………….…………………………………………………..…...6 History…………………………………………………………………………………….............8 Organizations and Organizational Effectiveness…………………….…………………………....9 Stakeholders, Managers, and Ethics…………………………………...………………………...10 Organizational Design…………………………………………………………………………...11 Deg Organizational Structure: Authority & Control…………………………………..…..12 Deg Organizational Structure: Specialization & Coordination……………………………13 Managing in a Changing Global Environment…………………………………………………..13 Organizational Design & Strategy……………………………………………………………….14 Creating & Managing Organizational Culture…………………………………………………...15 Organizational Technology………………………………………………………………………16 Organizational Transformations…………………………………………………………………16 Decision Making…………………………………………………………………………………17 Mission, Vision and Values……………………………………………………………………...18 Product Profile…………………………………………………………………………………...20 Quality control…………………………………………………………………………………...23 SWOT Analysis………………………………………………………………………………….27 Market Analysis……………………………………………………………………………........30 Marketing Objectives…………………………………………………………………………….34 Introduction to Research Work…………………………………………………………………..43 Objective of the Study…………………………………………………………………………...43 Research Methodology…………………………………………………………………………..43 Implementation and Control……………………………………………………………………..43 Suggestion ……………………………………………………………………………………….45 Conclusion……………………………………………………………………………………….46 Limitation of the Study…………………………………………………………………………..46

INTRODUCTION The Coca-Cola Company is a beverage company, manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA, S&P 500 Index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. Its current chairman and CEO is Muhtar Kent.

EXECUTIVE SUMMARY The objective of the project is to know the consumers preferences for Cola Drinks, to study the Market Potential of COCA COLA and the report contains a brief introduction of Coca Cola. The company COCA COLA has interests in various sectors and they provide consistent quality products to meet our costumer’s requirement worldwide. This report clearly mentions objective of the study and the research methodology utilized. Both primary data and secondary data. The data collection method used is structured no disguised questionnaire in which the types of questions used are open ended, multiple-choice and close ended. Some of the research areas are CHIRIAMORE, BARRACKPORE AND KHARDAH. This project reveals one of the important findings like more and more displays of the window hiring and can be given to the retail outlets as it has been said that “JItna Dikhega Utna Bikega”. To increase its consumption, more schemes like ‘Seasonal Schemes’ and other schemes can be given to the consumers. A detailed survey of the consumers was carried to find out their preferences for COCACOLA. The details of the

methodology are stated below. Areas are KOLKATA, BARRACKPORE AND KHARDAH research design: Exploratory and descriptive. Sources of information are primary and secondary data. Data collection method structured no designed questionnaire. Types of questions used open ended, multiple choice and close ended. Sampling methods random sampling. In this study I found that most of the consumers prefer COCA COLA as their 1st preference and then PEPSI.

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, ed 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 Pennsylvania, the Prince of Wales International Business Leaders Forum, the 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 post-12 Graduate degree in istration from the University of New

South Wales. He holds an honorary doctorate in international law from Thunderbird, the American Graduate School of International Management

IN INDIA The Coca-Cola Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign investments in 1991. Since then its operations have grown rapidly through a model that s bottling operations, both company owned as well as locally owned and includes over 7,000 Indian distributors and more than 1.3 million retailers. Today, our brands are the leading brands in most beverage segments. The Coca-Cola Company’s brands in India include Coca-Cola, Fanta Orange, Fanta Apple, Limca, Sprite, Thums Up, Burn, Kinley, Maaza, Maaza Milky Delite, Minute Maid Pulpy Orange, Minute Maid Nimbu Fresh and Nestea Iced tea, the Georgia Gold range of teas and coffees and Vitingo (a beverage fortified with micro-nutrients). In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen authorized bottling partners of The Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages under certain specified trademarks of The Coca-Cola Company; and an extensive distribution system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use these to produce our portfolio of beverages. These authorized bottlers independently develop local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses. In turn, these customers make our beverages available to consumers across India. The Coca-Cola Company has invested nearly USD 1.1 billion in its operations in India since its reentry back into India in 1992. The Coca-Cola system in India directly employs over 25,000 people including those on contract. The system has created indirect employment for more than

1,50,000 people in related industries through its vast procurement, supply and distribution system. We strive to ensure that our work environment is safe and inclusive and that there are plentiful opportunities for our people in India and across the world. The beverage industry is a major driver of economic growth. A National Council of Applied Economic Research (NCAER) study on the carbonated soft-drink industry indicates that this industry has an output multiplier effect of 2.1. This means that if one unit of output of beverage is increased, the direct and indirect effect on the economy will be twice of that. In of employment, the NCAER study notes that “an extra production of 1000 cases generates an extra employment of 410 man days.” As a Company, our products are an integral part of the micro economy particularly in small towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is amongst the largest domestic buyers of certain agricultural products. As an industry which has strong backward and forward linkages, our operations catalysis growth in demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. Our operations also lead to incremental growth for enterprises engaged in post production activities like merchandising, marketing and sales. In addition, we share best practices and technological advancements with our suppliers, vendors and allied industries which often lead to improvement in the overall standards of quality across industries. The Coca-Cola Company has always placed high value on good citizenship. Our basic proposition entails that our Company’s business should refresh the market; enrich the workplace; protect and preserve the environment; and strengthen the community. We leverage our unique strengths to actively and respond to local needs -- be it the need for education, health, water or nutrition. We have used our distribution network for disaster relief, our marketing prowess to raise awareness on issues such as PET recycling, and our presence in communities to improve access to education and potable water. The Coca-Cola India Foundation is now taking forward in the community at large, projects and programs of social relevance to carry forward the message of inclusive growth and development.

BENGAL BEVERAGES PRIVATE LTD. Bengal Beverages Pvt. Ltd. is among India’s leading beverages manufacturing companies (Authorized Bottlers of Coca Coca Company), with consolidated revenues of around Rs.250 crores (USD 50 million) in 2010-11. It is one of the leading beverage industries in the soft drinks segment in West Bengal. The Company's over 600 employees are guided by the vision of “Consumer Satisfaction is our Asset.” Its key products include Thums Up, Sprite, Coca-Cola, Fanta, Limca, Maaza, Kinley Soda & Kinley Water. Bengal Beverages started its operations in the year of 1984. Its sales jurisdiction is spread over approximately 80% area of West Bengal (Hooghly, Howrah, Part of Kolkata (North), Murshidabad, Burdwan, Midnapore, 24 Parganas North, Nadia, etc.) The Factory and istrative office are located at Durgapur Expressway, P.O- Dankuni Coal Complex, P.S. – Dankuni, Distt. – Hooghly, PIN – 712 310.

HISTORY OF COLA 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 1992the 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 ed in the drink to produce a fizz. After the crowing of the bottle the crown contains the manufacturing data batch number and Time

ORGANIZATIONS AND ORGANIZATIONAL EFFECTIVENESS What allows an organization to continue to operate for over 125 years, and along the way, become one of the most globally recognizable brand names? The ability to adapt and find new markets has helped Coca-Cola become an icon of the American culture. Coca-Cola was invented in 1885 and since The Coca-Cola Company’s incorporation in 1892; a strong focus on growth and marketing has existed. Besides traditional ments in the local newspaper, the company’s founder, Asa Candler, distributed thousands of coupons for free glasses of Coca-Cola so that many more people would be inclined to taste the product. He also distributed countless souvenirs that depicted the Coca-Cola trademark logo. By 1900, the organization, already, had operations in the United States and Canada. This focus on aggressive marketing is, still, the cornerstone for The Coca-Cola Company’s strategy and culture. The Coca-Cola Company was eager to take advantage of new markets, and expansion efforts quickly led to Cuba, Puerto Rico, Guam, and the Philippines before long, Coca-Cola was being sold in Europe. When The United States entered World War II, Coca-Cola was being sold to both sides. The Coca-Cola Company turned what many would view as a threat, into an enormous opportunity. In 1941, the company’s president, Robert Woodruff made an order to provide American troops with CocaCola, regardless of where they were, and what it cost to the company. During the war, 64 bottling plants were set up in Europe and the Pacific. This not only allowed American troops to acquire a taste for the drink, but it left Coca-Cola with a solid foundation to greatly expand its operations overseas. Over time, The Coca-Cola Company has remained adamant about staying in the non-alcoholic beverage industry. Besides soft drinks, The Coca-Cola Company sells energy drinks, juice drinks, sports drinks, tea, and water. The current focus of The Coca-Cola Company is still that of growth. The current objective of the organization “is to use our formidable assetsbrands, financial strength, unrivalled distribution system, global reach, and a strong

commitment by our management and employees worldwide-to achieve long-term sustainable growth”

The key inputs for production are the raw materials used in the beverages. The company uses different types of sweeteners depending on where the concentrate is being produced. Water is one of the main ingredients used in every beverage. Since the organization greatly focuses on marketing, human capital is an important asset to the company as well. Without its employees’ knowledge and abilities, The Coca-Cola Company would not be nearly as successful. The secret formula for Coca-Cola is another key input for the company. The Coca-Cola Company does not actually produce soda. They produce the concentrate or syrup, which is then sent to distributors. Distributors add carbonated water and any other ingredient necessary to create the final product. The production process of Coca-Cola is a secret; however, it mainly consists of adding the correct amount of ingredients, and mixing them. The process to create each beverage is extremely mechanized in order to achieve quick and efficient production. The outputs of The Coca-Cola Company are the syrups and concentrates of its beverages. The Coca-Cola Company faces a number of challenges, many of which stem from the fact that the organization operates on such a large level. Each market has its own trends and demands. Consumers in some markets have become more heath conscious. In order to react to this trend, many diet and low-calorie drinks have been created. The Coca-Cola Company is always trying to find ways to be innovate. Due to the anti-carbohydrate trends created by the Atkins diet, Coca-Cola C2 was introduced. It is supposed to have the same taste as Coca-Cola, but contain half the carbohydrates. Another problem The Coca-Cola Company faces is derived from the social and political differences of each market. For example, different countries have different laws. Most developing countries have more relaxed pollution requirements. In some countries, bribes of government officials are considered normal and expected. While it is company policy that The Coca-Cola Company will follow the laws of every country that it operates in, it still has strong criticism from other parts of the world for its actions. The company has recently been the subject of strong criticism the company’s bottling plants in Colombia are alleged to have killed workers who were attempting to unionize. Even though the bottling plants are independently owned and operated, and

nothing has happened legally to the bottling plants in Colombia, The Coca-Cola Company has been facing strong criticism for it in the United States. The Coca-Cola Company’s structure has characteristics of both organic and mechanistic models. The organization has a more centralized structure, however in recent years there has been a movement towards decentralization. A more in-depth analysis of the organization’s structure will be discussed later. The Coca-Cola Company measures success in many ways. The Coca-Cola Company believes that if they analyze sales based on volume growth, it is an indicator of trends at the consumer level. The company obviously looks at profit as a way to measure success. Recently, The Coca-Cola Company has been focused on being a more responsible global citizen. The company has over 70 clean-water projects in countries all across the globe.

STAKEHOLDERS, MANAGERS, AND ETHICS The stakeholders for The Coca-Cola Company as stated in the company’s Corporate Responsibility Review are:

a. Shareowners b. Employees c. Bottling partners d. Governmental agencies e. Suppliers f. Retail customers g. Consumers h. Local Communities i. NGOs Because each group of stakeholders has a different goal, conflicts arise. The shareowners are concerned with earning a profit, while local communities care deeply about environmental issues and labor standards. Suppliers want to charge as much as possible to create more revenues, and The Coca-Cola Company wants to get the lowest prices to decrease costs.

Management wants to keep labor costs down, while employees want raises and increased benefits. The organization’s divisional managers run company operations in a general region of the globe. The functions of each vice president are divided into functions such as human resources, innovation/research and development, marketing, and public affairs and communication. The two functions most critical in taking advantage of the company’s competitive advantages are marketing and innovation/research and development. As stated time and time again, the organization tries to capitalize on its brand name as much as possible, which is why the marketing function is so important to the company. The Innovation/research and development department must come up with the products that the marketing function demands. The majority of the top level managers at The Coca-Cola Company have worked in many different regions and areas of the company. Many have worked for or ran the bottling companies that partner with the organization. The fact that of the top management team have well rounded backgrounds allow for problems to be looked at from multiple angles.

ORGANIZATIONAL DESIGN The Coca-Cola Company realizes that it needs to be able to meet the ever changing demands of its customers. This is why the company pushed towards decentralization in the nineties, and even more so recently. The organization has two operating groups called Bottling Investments and Corporate. There are also operating groups divided by different regions such as: Africa, Eurasia, European Union, Latin America, North America, and Pacific. Each of these divisions is again divided into geographic regions. By allowing decisions to be made on a more local level, the organization can quickly respond to changing market demands, and higher-level management can focus more on long-term planning. Certain divisions of the company, such as finance, human resources, innovation, marketing, and strategy and planning are centrally located within the corporate division of the company. Some of these functions take place at lower levels in each of the regions of the company; however, most decisions are made at the top of the hierarchy. For example, in 2011 the decision to sponsor the World Cup was done at the corporate level. Corporate headquarters, however, allowed the local divisions to make the advertising decisions. This allowed each division to specifically design commercials and ads that

would appeal to the local market. When Neville Isdell took over as CEO and chairmen of The Coca-Cola Company in 2004, he began to using more complex integrating mechanisms. In order to deal with organization’s extremely low growth rate, Isdell used teams of top managers to create solutions to the organization’s most pressing problems. Face-to-face meetings were held regularly at the local levels so employees could remain informed. Besides the use of teams and meetings, the intranet was overhauled to provide a source of real-time sharing of information. The use of complex integrating mechanisms is important in such a tall and wide organization. It is important that each function of the company is able to share up-to-date information quickly with each other. The organization seems to be doing an excellent job of balancing standardization and mutual adjustment. The Code of Conduct for the organization is guidebook for how every employee should act. Should an employee act improperly, they are subject to disciplinary actions. Due to the changes implemented by Isdell, mutual adjustment has started to play a larger role in the organization. Employees feel more engaged and turnover has been reduced. Isdell’s changes have led to increased growth rates for the organization, and return on equity for stockholders went from a negative return to a 20percent return. This balance is essential, because it allows employees some flexibility, but also gives the organization some predictability. The Coca-Cola Company’s structure is a hybrid of both mechanistic and organic models. The focal point of The Coca-Cola Company is on responsiveness. The complex integrating mechanisms previously discussed are characteristic of an organic structure. The surveys and interviews used by the company allowed information to flow from the bottom-up, and the intranet allows for information to be exchanged laterally. The surveys have also caused The Coca-Cola Company to pursue simplification and standardization. Centralization and high standardization are associated with a mechanistic structure. The blending of both types of structures seems to be ideal for the organization. Flexibility is essential when trying to appeal to such a vast number of independent markets, however, high standardization is important to remain efficient in production. The use of complex integrating mechanisms allows for easier coordination for the global company. Centralization keeps organizational choices aligned with organizational goals. Now that information in the company is flowing in every direction, uppermanagement will have access to information more quickly, adding to the organization’s

flexibility and responsiveness. The recent shift towards a more decentralized and organic structure corresponds with the uncertainty of the organization’s environment

DEG ORGANIZATIONAL STRUCTURE: AUTHORITY &CONTROL The Coca-Cola Company currently employs approximately 94,800 employees. According to a general organizational chart obtained from the company’s website, there are more than 5hierarchical levels at the corporate level. For example: the head of the Canadian division reports to the president and COO of the North American Group. That president reports to the CFO, who reports to the Office of the General Counsel. The General Counsel then reports to the CEO. It is fair to assume that there are at least a few more steps in the hierarchy at the local level. Due to its tall structure, the organization has experienced communication problems. One of the problems discovered through a survey, was that the people and the company lacked clear goals. Tall hierarchies also cause motivation problems, which is why the organization is attempting to get employees more engaged. The increased usefulness of the company’s intranet will greatly increase the communication between every level of employees, and allow upper management to effectively communicate to the front line employees. Based on information from Report 2006 this span of control seems somewhat slim for the CEO of such a large organization. The CEO is also a member of the Senior Leadership Team. This team consists of each head of the eight operating groups aforementioned, and also has other top executives in areas like innovation and technology and marketing. Although there are only six people that answer directly to the CEO, the CEO is able to receive input from a wide variety of divisions because of this leadership team. Since the team is comprised of from various divisions, the CEO is able to obtain a wide variety of information. The move to decentralization has caused structural changes for The Coca-Cola Company. New offices have been opened to facilitate decisions being made closer to the local markets. The organization has also undergone centralization of some of the company’s departments. In 2006, the Bottling Investments division was created to “establish internal organization for our consolidated bottling operations and our unconsolidated bottling investments.” It appears that the organization is striving for a hybrid structure, which allows them to have advantages of both mechanistic and organic structures, while trying to minimize the negative consequences of each. The strategic structural changes

that the organization has gone through in recent years have created a much needed positive impact on the company. Sales growth increased and employees are much more satisfied. The organization is trying to create a more innovative culture by pushing towards decentralization.

DEG ORGANIZATIONAL STRUCTURE: SPECIALIZATION & COORDINATION The Coca-Cola Company realizes that a divisional structure gives the organization the best opportunity to react to the changes in its uncertain environment, but also allow it to maintain a level of stability. The multidivisional structure is beneficial for the organization for a variety of reasons. The division based on geographic region allows certain aspects of the company’s operations to be tailored to the individual market. One advertising campaign or slogan may not be appropriate for another market, so decisions about specific ads are made closer to the individual markets. Multidivisional structures allow divisional managers to handle daily operations while corporate managers are free to focus on long-term planning. There are also problems associated with this type of structure. If the company creates divisional competition, coordination may decrease because each division wants to have an advantage over everyone else. Communication problems may also exist because information can become distorted when it has to travel up and down tall hierarchies. A multidivisional matrix structure may be better suited for The Coca-Cola Company. This would increase coordination between corporate and divisional levels, and managers at each level would work together to create solutions to problems. While such a structure may be too complex for a global organization, the company may want to look into it.

MANAGING IN A CHANGING GLOBAL ENVIRONMENT Due to its tremendous global presence, The Coca-Cola Company operates in an extremely uncertain environment. Increased competition from global and local companies has led to competition over the most important resource: customers. The Coca-Cola Company must not only compete for customers, but also raw materials needed for each product. In some parts of the world, clean water is becoming increasingly hard to come by. The Coca-Cola Company has only one or two suppliers for some of its raw materials. For example, they view The NutraSweet

Company as one of only two viable sources for the ingredient aspartame .The Coca-Cola Company is at a strong disadvantage if they cannot decrease their reliance on a small number of suppliers. If relations with suppliers deteriorate, or if the suppliers go bankrupt, it would have dire consequences for The Coca-Cola Company. The Coca-Cola Company must also compete to get the best employees possible. The production of the beverages does not require skilled labor, The Coca-Cola Company’s top choices for the open CEO position decided not to the company because they did not like the actions of the Board of Directors. Due to the organization’s high credit rating, the company has the ability to raise funds at a lower cost. This allows the organization the opportunity to finance operations such as expansion through the issuance of debt. This may be necessary if The Coca-Cola Company looks to expand into new markets, or purchase new brands. The environment in which The Coca-Cola Company operates in is extremely dynamic. The environment is difficult to predict and control due to the global nature of the operations. The Coca-Cola Company faces the threat of reduced production or disruption in distribution if there is a problem in a market. Another reason the company’s environment is tremendously dynamic is due to the nature of their raw materials. Some of their key raw materials are dependent on specific climates. Climate changes may impact the price of the materials they need to obtain and, in turn, affect the cost of production. The strength and interconnectedness of the general forces that The Coca-Cola Company must deal with make the environment extremely complex. Recently in the United States, two forces have started to become inter-woven: cultural/social values and political/environmental forces. Many American companies are now being lambasted if they do not try to be more environmentally friendly, and The Coca- Cola Company is no different. The company has received plenty of criticism for its operations in India, with claims that they cause a great deal of pollution and have damaged local water supplies. The Coca-Cola Company uses a wide variety of techniques to manage relationships with its stakeholders, the most useful tool being strategic alliances. A former CEO of the organization claimed that 100 percent of its revenues came from strategic alliances. The company uses exclusive contracts with its bottling partners and other customers as well. In1999, the organization signed a ten-year deal with Burger King to be the restaurants only supplier of beverages. Even though PepsiCo was willing to

give Wendy’s a much better deal, the restaurant signed a ten-year deal with The Coca-Cola Company. This example show show powerful the Coca-Cola© brand name really is. The Coca-Cola Company has done an excellent job managing some aspects of the environment, but done a poor job at managing other parts of the environment. The negative publicity received from its operations in India and the actions of its bottling partner in Colombia has led to boycotts of Coca-Cola products on some campuses. While this is clearly bad for the company, the average consumer is completely unaware of these allegations. This means that The CocaCola Company is doing a decent job of damage control. While the company has not had any trouble with suppliers lately, the future is always uncertain. It does not seem like the company is not actively trying to secure supplies, which is why vertical integration was recommended.

ORGANIZATIONAL DESIGN & STRATEGY The core competences that give the organization its best competitive advantages are its strong brand name and its network of bottlers and distributors. Along with its marketing capabilities and broad portfolio of products, The Coca-Cola Company has core competences which are extremely difficult, if not impossible to duplicate. The strong Coca-Cola brand name gives the company a great deal of bargaining power and leverage. In 1999, PepsiCo and The Coca-Cola Company were fighting to become the supplier of beverages for the Wendy’s restaurant chain. Wendy’s opted to partner with The Coca-Cola Company even though PepsiCo was offering much more money. The brand name recognition that the company enjoys is a powerful bargaining tool. The Coca-Cola name even has an influence on consumer tastes. When The Coca-Cola Company was looking to launch Diet Coke, they performed some blind taste tests with consumers. The consumers preferred a glass labeled Diet Coke over a glass labeled Tab by 12 percent, even though the liquids in each glass were identical. It has taken the organization over 120 years to build such a strong brand preference, and this cannot be imitated by competitors. The relationships that the organization has with its distributors are another competitive advantage that cannot easily be imitated. The contracts and relationships between the two groups create symbiotic interdependencies, which mean that the success of both companies has a direct impact on each other. The Coca-Cola Company agrees not to sell to other parties in the

local market, and the bottler agrees to only purchase the syrup and concentrate from the company’s authorized dealers. The Coca-Cola Company at times provides the retailers and distributors with promotions, and capital at times. Because the organization does not have to worry about the distribution in the local markets, it allows the company to focus on more important issues. The Coca-Cola Company’s business-level strategy is one of differentiation. This is evident in the previous example of consumers preferring identical beverages just because the Coke brand name was attached. They have been successful pursuing differentiation because the focus of the company has always been on marketing. The Coca-Cola Company is “known for innovative marketing that constantly promotes their brand names and protects their domains from competitors. The hybrid structure of The Coca-Cola Company is ideal for its differentiation strategy. The centralization of the marketing and innovation functions allows the company to retain control over development, marketing and production. By performing extensive market research and creating more local offices, the company is always looking for new ways to serve new customers. The use of complex integrating mechanisms allows coordination between all levels and divisions of the company.

CREATING & MANAGING ORGANIZATIONAL CULTURE The culture of The Coca-Cola organization is mission driven; focused on refreshing the mind, inspiring optimism, and making a difference (Thecocacolacompany.com). The rich history of the organization has allowed the company to compile hundreds of stories of consumers and employees. These stories share real life examples of what Coca-Cola means to their consumers and give employees a sense of pride to be a part of something that means so much for so many people. They also inspire new employees to make appositive impact on the world. Stories are so important to The Coca-Cola Company that they created a museum in Las Vegas that focuses on the stories of customers. After visitors heard others’ stories, they could record their own, which the company could use in the future. As stated previously, the company has been trying to change the culture by allowing employees to essentially shape and reform the goals of The

Coca-Cola Company (Fox,2007). The positive stories that the company chooses to focus on provide a foundation to encourage employees to be not only model workers, but model citizens.

ORGANIZATIONAL TECHNOLOGY Currently, output processes are the greatest source of uncertainty for the organization. As previously stated, The Coca-Cola Company does not produce the end product. Distributors and bottlers mix other ingredients (mainly carbonated water) with syrups and concentrates and then sell the products. The Coca-Cola brand name is on the end product, regardless of who bottles it. The company must keep pressure on the bottlers to maintain high quality outputs, or it could have negative consequences for The Coca-Cola Company. There exists very little information about the production of the Coca-Cola syrup. Even at The World of Coca-Cola, a museum for the company, there is no mention of how the syrup is produced. The production of Dasani, the company’s bottled water, is extremely mechanized, and it is fair to assume that the production of every Coca-Cola product is the same. This mass production and high mechanization leads to a high level of technical complexity. Classification Level of Technical Complexity a. Small-Batch and Unit Production Low to Medium b. Large-Batch and Mass Production Medium to High Continuous Process or Flow Production High The typical structure of a manufacturing company that uses mass production is a mechanistic structure, in which efficient production is the desired end. The Coca-Cola Company’s structure is unique in that it has a lot of the characteristics of an organic structure. This is due to its focus on marketing and local appeal. The structural mismatch means that production in the organization may not be as efficient as possible; however, the benefits of the organization’s structure outweigh the consequences

ORGANIZATIONAL TRANSFORMATIONS The Coca-Cola Company was founded in 1888 to take advantage of the already popular CocaCola name. Of the four life cycle stages (birth, growth, decline, death), after 120 years, the company remains in the growth stage because the company’s value creation skills continue to

evolve. The company has faced a variety of internal problems over the years. A constant struggle in any organization is trying to meet employees’ demands while trying to keep labor costs low. In 2005, workers went on strike because management wanted to institute a policy where employees would pay a greater portion of their health benefits. If the organization experiences any work stoppage, the company may not be able to meet customer demand and lose out on revenue. Another internal problem within the company is that the board exercises a great deal of power and influence. As previously stated, the company failed to attract its top choices for CEO in 2004, and the board has even pulled ads because they thought the commercials did not fit the company’s image .Uncertainty in the environment has caused many external problems for the organization, ranging from uncertainty with its suppliers and distributors to political and societal pressures.. While there was not information regarding policy changes because of this, many believe that the power of the board will diminish because long time director Warren Buffet has stepped down. Buffet has been viewed as rather conservative and also involved himself in the decision making of the organization. As the company has continued to grow, top managers have pushed operational responsibility and decision making down to the local levels. This move allows the company to react better to each market, and it also allows corporate managers to concentrate on strategic and long-term planning. By allowing lower level managers to become intricately involved in the company’s growth efforts, Neville Isdell created an environment in which everyone felt responsible for the company’s performance. He has also promoted employees within the organization, which aligns both the goals of the managers and the organization. The fifth and final stage of Greiner’s model is focused on reducing bureaucracy to speed up decision making. In April2007, COO Muhtar Kent stated that the company is focusing on simplifying the structure to reduce bureaucracy. Theory postulates that an organization in this stage would be wise to pursue a product team or matrix structure. Because The Coca-Cola Company only operates in one domain and has over 400 products, the product team structure would be too costly and unrealistic. A matrix structure would be an idea worth considering; however the organization uses divisions based on geography, not product. Due to lack of information about the company’s regional structure, it is

hard to say whether the company should pursue a matrix structure or remain as a multidivisional structure.

DECISION MAKING The majority of decisions made by The Coca-Cola Company are done so by using the incremental method. Each year, the company would analyze results, and then make slight changes in operations to create better results next year. The company does not just quickly decide to create a new product, or change operations. Drastic changes take time. Recently, realizing that the company was in desperate need for a drastic change, Isdell sought to figure out why the company performance was declining. By starting at the lower levels of the organization to find solutions, the company was able to make some drastic changes to the company’s culture, how employees were rewarded, and made efforts to get employees more involved. The changes brought on by using the unstructured decision making model created much better results for the company. One of the biggest flaws in the organization is that the board of directors is responsible for some of the non-programmed decisions made by the company. When The CocaCola Company was seeking to purchase Quaker Oats, the deal was almost finalized, but then stopped because the board felt the price was too. When decisions are made by the board, it means they lack confidence in the upper management of the company to make vital decisions. This is problematic for the company for a few reasons. Because of the board have so much money invested in company stock, they want to minimize risk, and thus, are extremely prone to take fewer chances. The of the board do not or have not worked for the company, so they are not close enough to know all the pertinent information required to make complex decisions.

MANAGING CONFLICTS, POWER AND POLITICS Conflicts can be a healthy way for an organization to improve decision making, and create new ways for looking at problems. Conflicts can also be a significant source of trouble for an organization when they cause production declines or important decisions cannot be made. When the organization sought a new CEO in 2004, their top choices turned them down because the prospects felt that the board had too much power. This type of conflict can drastically affect the organization’s ability to change and adapt quickly, a necessity in the company’s extremely uncertain environment. The example also shows that it can prevent the organization from acquiring important human resources. The marketing department is the most powerful subunit in the organization. According to the data, “The marketing department has considerable power because it is the department that can attract customers – the critical scarce resource.” The heavy emphasis on marketing could prevent the company from finding ways to become more efficient in production or distribution. The benefits derived from the power allocated to the marketing function greatly outweigh any negative consequence. By providing the department with more resources, the company can conduct greater market research. For example, even though the organization had a diet beverage on the market, research indicated that by simply using the name Diet Coke, preferences for the same tasting beverage increased dramatically. Allocating more capital to the department also allows for each marketing campaign to be tailored to specific markets, making ments more effective. Market research also saves money for the company. If consumer data shows the company that one of their ideas would not do well, the company can decide not to produce that beverage. The strong emphasis on marketing has allowed Coca-Cola to become one of the most recognized brand names in the world, which gives the company an advantage over its competition and gives it more bargaining power. One negative consequence of putting such a great emphasis on marketing research is evidenced in what has become known as one of the greatest flops in history. Taste tests indicated that consumers would prefer a new, sweeter version of Coca-Cola, which lead to the creation of New Coke in 1985. The strong brand attachment that the company worked so hard to achieve with consumers caused a severe

backlash towards the reformulation of Coca-Cola. This example proves that market research cannot always be an indicator of what will actually happen.

MISSION, VISION ANDVALUES Following are the mission, vision statements and company’s core values taken from the company’s official website:-

The world is changing all around us. To continue to thrive as a business over the next ten years and beyond, we must look ahead, understand the trends and forces that will shape our business in the future and move swiftly to prepare for what's to come. We must get ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for our business and provides us with a "Roap" for winning together with our bottling partners.

Mission Our Roap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

A. To refresh the world B. To inspire moments of optimism and happiness C. To create value and make a difference.

Our Vision Our vision serves as the framework for our Roap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

a. People: Be a great place to work where people are inspired to be the best they can be.

b. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

c. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

d. Planet: Be a responsible citizen that makes a difference by helping build and sustainable communities.

e. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

f. Productivity: Be a highly effective, lean and fast-moving organization

Our Winning Culture Our Winning Culture defines the attitudes and behaviors that will be required of us to make our 2020 Vision a reality.

Live Our Values Our values serve as a com for our actions and describe how we behave in the world. a. Leadership: The courage to shape a better future b. Collaboration: Leverage collective genius

c. d. e. f. g.

Integrity: Be real ability: If it is to be, it's up to me ion: Committed in heart and mind Diversity: As inclusive as our brands Quality: What we do, we do well

Focus on the Market a. b. c. d. e.

Focus on needs of our consumers, customers and franchise partners Get out into the market and listen, observe and learn Possess a world view Focus on execution in the marketplace every day Be insatiably curious

Work Smart a. b. c. d. e.

Act with urgency Remain responsive to change Have the courage to change course when needed Remain constructively discontent Work efficiently

Act Like Owners a. b. c. d.

Be able for our actions and inactions Steward system assets and focus on building value Reward our people for taking risks and finding better ways to solve problems Learn from our outcomes -- what worked and what didn’t

Be the Brand Inspire creativity, ion, optimism and fun

Coca-Cola is the best-selling soft drink in most countries. While the Middle East is one of the only regions in the world where Coca-Cola is not the number one soda drink, Coca-Cola nonetheless holds almost 25% market share (to Pepsi's 75%) and had double-digit growth in2003. Similarly, in Scotland, where the locally produced Irn-Bru was once more popular, 2005 figures show that both Coca-Cola and Diet Coke now outsell Irn-Bru. In Peru, the native Inca Kola has been more popular than Coca-Cola, which prompted Coca-Cola to enter in negotiations with the

soft drinks company and buy 50% of its stakes. In Japan, the best selling soft drink is not cola, as (canned) tea and coffee are more popular.

PRODUCT PROFILE The Coca-Cola Company offers nearly 400 brands in over 200 countries, besides its namesake Coca-Cola beverage. Tab was Coca-Cola's first attempt to develop a diet soft drink, using saccharin as a sugar substitute. Introduced in 1963, the product is still sold today, however its sales have dwindled since the introduction of Diet Coke. The Coca-Cola Company also produces a number of other soft drinks including Fanta and Sprite. Fanta's origins date back to World War II when Max Keith, who managed Coca-Cola's operations in during the war, wanted to make money from Nazi but did not want the negative publicity. Keith resorted to producing a different soft drink, Fanta, which proved to be a hit, and when Coke took over again after the war, it adopted the Fanta brand as well. The German Fanta Klare Zitrone ("Clear Lemon Fanta") variety became Sprite, another of the company's bestsellers and its response to 7 Up. During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing several new non-carbonated beverage brands. These included Minute Maid Juices to Go, PowerAde sports beverage, flavored tea Nestea (in a t venture with Nestle), Fruitopia fruit drink and Dasani water, among others. In2001, Minute Maid division launched the Simply Orange brand of juices including orange juice.

INDIAN PRODUCT RANGE Flavor C o l a

Ingredients Cola Flavor carbonated water sugar

Pack 200Ml. 300Ml. 500Ml. 1 Litre 1.5 Litre

Product Coke, Thumsup

Company Coca-Coal

Orange

Orange Flavor +Carbonated Water+ Sugar

Fruit Juice

Mango Pulp T r e a t e d w a t e r sugar Lemon Flavor + Carbonated Water+ Sugar

Cloudy Lemon

Clear Lemon

Lemon Flavor+ Carbonated Water + Sugar

2 Litre 200Ml. 300Ml. 500Ml. 1 Litre 1.5 Litre 2 Litre 250 ML

200Ml. 300Ml. 500Ml. 1 Litre 1.5 Litre 2 Litre 200Ml. 300Ml. 500Ml. 1 Litre 1.5 Litre 2 Litre

Fanta

Coca-Cola

Maaza

Coca-Cola

Limca

Coca-Cola

Sprite

Coca-Cola

MAJOR PRODUCTS OF COCA-COLA Product Name

Coke

Sprite

Fanta

Image

Diet Coke

Minute Maid

Minute Maid Juices

Kinley Drinking Water

Quality Control Chemical & Microbiological Laboratory Chemical and Microbiological tests conforming to the BIS norms are being performed in the QC Lab to ensure proper quality of the finished product. The requisite tests are being carried out both in-house and outside and strict quality control monitoring is done to cater the market with the highest level of quality standards.

Hygiene & Cleanliness All the plant & machineries are housed in airconditioned and dust free environment and no compromise is being made for cleanliness and hygienic conditions under strict supervision of the management.

Regular Upkeepment & Maintenance A stringent sanitation and maintenance program at regular and fixed intervals is carried on under strict supervision of the quality control team. Some of the steps include cleaning and sanitization of the storage tanks, fumigation, etc.

Infrastructure Most of the water borne diseases emanates from unclean water, poor and obsolete technology used to purify the water, unhygienic condition and most importantly the source of water and chances of contamination from surrounding industries and locality. Treated drinking water coming out of EBPL ensures safe, clean, potable water for human consumption, anytime and every time. A bottle of water is treated through State-of-the-Art technology comprising of Dual Media Filtration, Activated Carbon Filtration, Reverse Osmosis (R.O), Micron Filtration and through U.V treatment and Ozonisation.

Stretch Blow Formation (SBF) EBPL has captive production facilities of bottles from best of quality pet pre-forms in our Blowing unit equipped with hi-tech national and international automatic machines. The machines are manned by experienced operators and are supervised by experienced professionals.

Water Treatment Plant Two numbers of Water Treatment Plants for treating water through Reverse Osmosis technology are installed. The plants are being operated and managed by the personnel veterans of the industry with rich hands on experience.

Rinsing, Filling & Capping Unit A fully automatic Rinsing, Filling & Capping machine is installed, wherein the empty bottles are fed in and the rinsing, filling and capping is done automatically to avoid single human in the production area.

Jar Filling Section A separate jar filling section is set up with an automatic Jar Filing Machine, which includes an

Corporate Social Responsibility As part of our ongoing Endeavour to provide a better life, care for our environment & our future generation, Corporate stated Philosophy the promoter group is associated with multiple NGOs across the country as part of the group's CSR. Carrying forward the objective, we believe that to bring in the change around us it's necessary to inculcate the change that we want across the organization starting from care for the people, ing education for the less privileged, basic healthcare and environment at large.

automatic 6 stage rinsing and washing of the jar before automatic filling of-the water.

Tips to choose the correct Bottled Water IS Water is simply one compound, H20, which by itself has no taste. No taste at all and no nutritional value. Dissolved solids generally only affect appearances and clarity. Look for water in high grade containers (glass or PET plastic) .Try and wash the bottle before drinking, or at least wipe the bottle and specially the cap and the neck area before you gulp the first drop. This will safeguard you from any dust, germs which may get stick on to the bottle from outside and may mix with the water when you open the cap. 

Don't take or consume any PDW whose cap and seal is broken or even scratched or if water is leaking from the cap or the bottle.



Beware of spurious fillers who provide cheap PDW. You are never sure from what source is this water coming. Globally the shelf life of PDW is 1 year and in some cases don't have any limitation on the shelf life of bottled water. In India the BIS prescribed shelf life is 6 months.

Before you gulp the first drop. This will safeguard you from any dust, germs which may get stick on to the bottle from outside and may mix with the water when you open the cap.

Water Facts & Trivia



70% of Adult body is water, at birth its 80%.



75% of normal human brain is water



Frozen water is 9% lighter than water, which is why ice floats on water.



Of all the water on earth, only 2.5% is fresh water. Fresh water is either groundwater (0.5%),or readily accessible water in lakes, streams, rivers, etc. (0,01 %).



Over 90% of the world's supply of fresh water is located in Antarctica.



Less than 1 % of the water supply on earth can be used as drinking water.



A person can live about a month without food, but only about a week without water.



A person must consume 2 litres of water daily to live healthily. Humans drink an average of 75,000 litres of water throughout their life.



Globally an average person spends less than 1 % of his or her total personal expenditure for water, wastewater, and water disposal services.



Less than 1 % of the water treated by public water systems is used for drinking and cooking.



It takes 5,680 litres (1,500 gallons) of water to process one barrel of beer.



About 25,700 litres (6,800 gallons) of water is required to grow a day food for a family of four.

SWOT Analysis: Strengths

Internal

Weaknesses

-Popularity

-Word of mouth

-well known

-lack of popularity of

-branding obvious and

many Coca Cola’s brands

easily recognized

-Most unknown and rarely

-A lot of finance

seen

-customer loyalty

- non-existent

-International Trade

advertising -health issues

Threats External

Opportunities

-changing health-

-many successful brands

consciousness

to pursue

attitude

- its less

-legal issues

popular products

-Health ministers

-buyout competition.

-competition (Pepsi)

-More Brand recognition

SWOT analysis is a technique much used in much general management as well as marketing scenarios. SWOT consists of examining the current activities of the organization- its Strengths and Weakness- and then using this and external research data to set out the Opportunities and Threats that exist.

a) Strengths: Coca-Cola has been holding a large part of world culture for a very long time. Coca cola has focused on brand image and brand loyalty along with providing supreme taste and quality. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment" (Allen, 1995). Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to conduct business on a global scale while at the same time maintain a local approach. The bottling companies are locally owned and operated by independent business people who are authorized to sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its bottling network, its main source of revenue is the sale of concentrate to its bottlers. Consumers basically drink what they get. They believe on “WHATS COLD GETS SOLD” Consumer’s availability in brands is basically works like: 

Push availability.



Pull consumer’s demand.

For this reason Coca-Cola Intl has provided their coolers and freezers in the market. They have maximum number of coolers and freezers in the market. They provide this infrastructure free of

cost just to provide child coke to their customer, which they want to be purchase.

b) Weaknesses: Coca-Cola contains caffeine and caramel which can adverse effects on the teeth (if prolonged) which is an issue for health care. It also has got sugar by which continuous drinking of Coca-Cola may cause health problems. Being addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an effect on your body after few years. Another weakness which may be considered regionally is its sugar content. Pepsi Co. makes its sales only because Pepsi is so far, having a larger market share only because it is more sugary and Asian people focus on sugary drinks.

c) Opportunities: Brand recognition is an important factor in affecting Coke's competitive position. Coca-Cola's brand name is known well throughout 94% of the world today. The main concern of Coca Cola Marketing Strategies has been just to improvise its system and make it even more recognizable. The bottling system of Coca Cola allows the company to take advantage of its growth opportunities.

d) Threats: The main threat is Price. A small increase in price, let’s say just 1 rupee will have a drastic effect on sales. Only because people will go for the next available substitute i.e. Pepsi so price change is a major factor in affecting Sales of coca cola and in marginal profits. Coca Cola can face major losses if it goes for a sudden increase or decrease in price. Contradiction: Some analysts assume that new competitors can also have an effect on Coke

Sales. But actually, new comers have some what a very less contribution because Soft Drink industry is in itself a very vast and strong industry. New competitors can never make their way up to Coke’s level in a even 10 years to come. A possible threat may be the increasing health awareness. People have recently become more

conscious about health issues. 60% of the world’s population does not drink carbonated drinks (due to poverty and /or health issues). Another threat is the increasing rivalry between Pepsi and Coke. This has somewhat changed customer perceived value and now both competitors have to respond to an ever increasing demand and attributes of consumers.

Market Analysis The biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market. In 2002, the company grew their carbonated soft-drink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. In Asian population, which is the satisfied customer of Coca Cola, is approximately 4.2 billion and the average consumer enjoys close to four servings of our products each month. Through an intense focus on Coca-Cola, innovation and new beverages, the company has achieved volume growth of 22 percent in 2009. So the company is emphasizing more in this area and is trying to develop a strategy, which can increase the growth of the consumption of Coca Cola by the people of Asia. Among the countries of Asia, Japan has the highest percentage, which is about 29%. Among others, Pakistan, India and Bangladesh are those countries where the average consumption is increasing day by day.

a) External Factors i) Customers: Customer satisfaction is considered as being the most important and vital things in Coca Cola’s

progress. The company to an extend has increase volume worldwide by 7 percent with strong international growth of 8.2 percent by 2010. It focuses on: 

Customer Database



Getting new potential customers, side by side retaining old ones.



Giving customers more than just a soft drink.



Brand loyalty.

ii ) Competitor Analysis: MAJOR COMPETETOR: PEPSI CO.

PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and Frito-Lay International. Pepsi-Cola beverages are available in more than 190 countries and territories. In Asia, they selected Lahore to make their regional office. This was done in 1970. This regional office is monitoring all the operations carried out in South West Asia.

Internal Factors: i) Company: The Coca Cola Company has always focused on portraying a simple yet strong brand image. Their motto was: Know the most recognized word on the planet after “OK”!

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion.

Competition The major competition faced by Coca Cola International is Pepsi Co. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 143,000 employees. The company consists of the snack businesses of Frito-Lay North America and FritoLay International; the beverage businesses of Pepsi-Cola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Foods North America, manufacturer and marketer of ready-to-eat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. Major Pepsi Co. products include: 

Pepsi



Teem



Mirinda



Pepsi Max



Pepsi Lemon



Pepsi Blue



Mountain Dew



7up

Keys to Success Coca Cola marketing team focuses not only on the results as well as the tasks assigned. 

They firmly believe if you want to establish a clear image in the minds of consumers, you first need a clear image in your own mind.



Since the major competitor is Pepsi Co. so Coca Cola Intl has focused on neutralizing the competition.



Kill the category: If Pepsi Co. launched Crystal Pepsi then Coca Cola Intl launched Diet Coke.



The Coca Cola marketing team maintained their focus strongly on the product itself. When they changed bottle shape, many people started buying bottles instead of the drink itself



The Coca Cola team learnt from everything. Even if a customer said “no”, they focused on “why” did he say no and then found out ways on “how” to solve that issue.



Formula for positioning success :  Define  Over deliver  Claim  Succeed



They specified the criteria for each product offered because if you don’t specify the criteria for choosing, consumers will develop their own, which is dangerous.

Critical Issues Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children exploitative labor practices, high levels of pesticides in its products, building plants in Nazi which employed slave labor, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthy-lifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists.

Marketing Objectives The ultimate objectives of our business strategy are: 

To increase volume



Expand our share of worldwide nonalcoholic ready to drink beverages sale



Maximize our long-term cash flows



Create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.

Aims:  People: Being a great place to work where people are inspired to be the best they can be.  Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate

and satisfy people's desires and needs.  Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.  Planet: Being a responsible citizen that makes a difference by helping build and sustainable communities.  Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

Target Markets The target market for Coca cola is very wide as it satisfies the needs for many different consumers, ranging from the healthy diet consciousness through Diet Coke to the average human through its best selling drink regular Coke. Most Coke products satisfy all age groups as it is proven that most people of different age groups consume the Coca Cola product. This market is relatively large and is open to both genders, thereby allowing greater product diversification. Coke’s commercials basically based on young generations, so, the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market.

Strategy The strategy for the future of the company is very straightforward. The marketing strategy for the year 2010 is as follows:  Accelerate carbonated soft-drink growth, led by Coca-Cola.  Selectively broaden the family of beverage brands to drive profitable growth.  Grow system profitability and capability together with our bottling partners.  Serve customers with creativity and consistency to generate growth across all channels.  Direct investments to highest potential areas across markets.

 Drive efficiency and cost-effectiveness everywhere.

Positioning Product Range: The total range of Coca Cola Intl. in Pakistan includes: ► Coke. ► Sprite. ► Fanta. ► Diet Coke.

Bottle Sizes: The company offers their products in different bottle sizes which include: 

SSRB

Standard Size Returnable Bottle



LRB

Litter Returnable Bottle



NRB

No Return Bottle or Disposable Bottle



PET

1.5 Liter Plastic Bottle



CANS

Tin Pack 330 ml

Packing: Coca cola products are available in different packaging: 

24 Regular Bottle Shell.



6 Bottle Pack for 1.5 PETs.



12 Bottles in a pack for Disposable Bottle.



24 Cans in one crate.

Marketing Mix The marketing mix is probably the most crucial stage of the marketing planning process. The marketing mix refers to the combination of the four factors (price, promotion, product, and place) that make up the core of a business’s marketing strategy.

a) Product: Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give on the products.

b) Promotion: Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in worldwide recognition. 'Coca-Cola' is the most recognized trademark, recognized by 94% of the world's population and is the most widely recognized word after "OK". Coca Cola’s red and white colors and special writing are all examples of world-wide trademarks. There are a number of branding strategies:  Generic brand strategy  Individual brand strategy  Family brand strategy  Manufacturer’s brand strategy  Private brand strategy  Hybrid brand strategy

Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as different lines they operate under the name of Coca Cola.

c) Place: The Coca Cola Company has always focused wide scale distribution. This is the reason, 94% of the world’s population knows about Coke. “Coca Cola” is the most recognized word after OK. Coca Cola sets its own distributions directly to stores. Stores include a wide variety of Supermarket, Marts, Convenience Stores, Retail Stores and Departmental Stores. The channel distribution of Coca Cola Intl is extremely large. Over time, they have produced many products and thus have increased number of warehouses for specific products. Coca Cola Intl has also improved services via setting up a national service network.

d)Price Since Coca Cola Intl faces a major threat from its competitor Pepsi Co., so naturally the Pricing is done keeping in view the increasing rivalry with Pepsi. Pricing is basically standard for all over the world. Price changes occur seldom after a longer period of time say, a year etc. Mostly prices are devoid of governmental and/or political laws and regulations but in Pakistan, due to an ever increasing rate of Inflation, prices have increased in a short span of time.

JO CHAHO HO JAYE, COCA COLA ENJOY!!!

The ultimate objectives of our business strategy are: 

To increase volume



Expand our share of worldwide nonalcoholic ready to drink beverages sale



Maximize our long-term cash flows

The Coca Cola system has more than 16 million customers around the world that sells or serves our products directly to consumers. We keenly focus on enhancing value for these customers and helping them grow their beverage businesses. We strive to understand each customer’s business and needs, whether that customer is a sophisticated retailer in a developed market a kiosk owner in an emerging market.

Aims: People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and sustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities.

Sponsorship Sports Coca-Cola sponsored the English Football League from the beginning of the 2004 05 season (beginning August 2004) to the start of 2010/11 season, when the Football League found a new sponsor in NPOWER. Other major sponsorships include NASCAR, the NBA, the PGA Tour, NCAA Championships, the Olympic Games, the NRL, the FIFA World Cups and the UEFA Euro. In the Philippines, it has a team in the Philippine Basketball Association, the PowerAde 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.

The Coca-Cola Company Stock Quote (NYSE: KO) Latest 06/20/11 12:20:50

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INTRODUCTION OF RESEARCHWORK This report attempts to study the marketing mix keeping in mind the current market situation. Besides, this report also studies the customer about the COCA COLA. Thus it can be said that there are two broad goals of the research i.e. TO STUDY THECONSUMERS PREFERENCE FOR COCA COLA as a whole and other to CREATE A TOP OF MIND AWARENESS OF 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. Consumption of soft drinks has increased tremendously in India. Every age of group like it, now days it become a household necessary item. In field of marketing many kind of surveys are conducted by Coca-Cola team time to time.

OBJECTIVE OF THE STUDY 

To study the consumers preferences for Coca Cola.



To know which brand’s ment mostly people have seen.



To know the reason to buy cola drinks.



To know why was the ment being noticed by the consumer?



To create a top of mind awareness about COCA COLA by providing the information to consumers

Scope of Study 1. Scope of this business research study is to know the consumer preference for the company product. 2. To understand the consumer perception about the product

Significance of the Study To the Researcher: •It gave a chance to use the conceptual knowledge in actual environment and prepares the researcher to use the knowledge for better in his future endeavors. It helped in the assessing the factors, which influenced the retailers purchasing and selling products to the consumer from Coca-Cola. •The study is essential for the researcher in partial fulfillment of PGDM curriculum. The study gave the researcher the experiences to conduct survey

To the Company: Cold drinks companies are facing a great competition nowadays. Consumers are very much aware and curious about safely products, services, brands and other products. This study provides an insight to the company that what kind of strategies must be adopted in order to sell more products to consumers and also satisfying them.

To the Others: The study gave an insight into various aspects of the Beverage companies, discussed in this study. One can easily come to know about what is happening in Beverage companies in the current environment. How they make attraction of Retailers & consumer mind.

LIMITATIONS OF THE STUDY 

Some of the respondents refused to fill the questionnaires.



The responses may vary as some people did not want to come up with real answers.



Limitation of time.



The survey is conducted only in few areas of AREAS: KOLKATA (Barrackpore- chiriamore, lalkuti, shantibazaar, nona chandanpukur, barasat road Khardah;- rahra, B.T road )



Hence the results may vary in other parts of the cities.



Small sample size.



And like any other research the limitation of personal bias of respondents limits the scope of the study. The findings are based on the survey conducted in the month of APRIL and MAY; the results may vary in other months

RESEARCH METHODOLOGY A detailed survey of consumers was carried out to find out their preferences for COCACOLA the details of the methodology are stated below:

Type of Research

•Exploratory Research •Descriptive Research

Sampling technique

•Convenience sampling

Samplings Areas

KOLKATA (Barrackpore- chiriamore, lalkuti, shantibazaar, nona chandanpukur, barasat road

Khardah;- rahra, B.T road ) HYDERABAD Primary Data

Responses through questionnaires

Secondary Data Sample Size

Websites 100

ANALYSIS •Focus on availability of products in market. •Focus on availability of products in outlets. •Coke products visible for consumers. •More focus in rural area. •Regular market vigilance by market developer. •Distribution of product according locality. •Extra focus on monopoly outlets. •Aggressive rural area ment. •Target core brands. •Satisfy market priorities. •Focus on villages’.

MAJOR FINDINGS Focus on availability of products in market.

“Coca-Cola works on dikega to bikega” philosophy. This is the main formula of the marketing strategy of each company. So availability of product in the market is clear. For this reason market developer daily come in market to check their product availability.

Focus on availability of products in outlets. There is big difference between the availability of products in market & outlets. Coca-Cola want that their product displayed in each outlet in market so it is important that the product first available in market after than it put on outlets.

Focus on visibility of coke product in outlet The aim of Coca-Cola is that its product should be visible for the customers so company gives to retailers racks so many display items. Now days the company is giving visicoolers to retailers for visible their chilled product in market for more sales.

Regular market vigilance by market developer To know the position of Coke’s product in the market coca-cola appoint some executive those going market & check availability, visibility of product, take care companies assets, check visicoolers and talk to shopkeeper & take about their product. Distribution of product according locality .Coca-cola Company distributes their schemes according to area. Area or place where soft drinks sold in a large manner, on those place company gives good schemes to shopkeeper and retailer. Place like railway station bus stand are consider in this category and place which

have low selling where company gives small schemes to the shopkeeper.

Extra focus on monopoly outlets Outlets which only sales coca-cola product and gives good sale to company, Are consider in this category company gives extra schemes, discount and other gift to these shops and tries to keep them happy and make long relationship. Problem of these kinds of outlets resolve as soon as possible

Aggressive ment Coca-cola use the concept of aggressive s for sales promotion. Company introduces different schemes and s them with electronic and print media. These ments build Brand image and establish awareness. Brand ambassador play an important role. Brand ambassador encourage the today youth to trust their instincts, influence them. Successful ment campaigns like

“taaza mango, maaza mango” and “bottle mein

aam, maaza hain naam”. Help lot to make market image of maaza. Coca-cola advertising cam Gains Jo

Chaho Ho Jaye. & Life Ho To Asi

youth vocabulary.

was very popular & had entered in

Implementation & Control Implementation: Currently, Coca Cola Intl. issuing the following techniques to increase shareholders wealth maximize customer satisfaction and satisfy the market: 

Value Positioning



Value Pricing



Promotional Pricing



Differentiation o Image o Product o Channel Personnel



Market Strategy o Niche Marketing o Mass Marketing

Control: Coca Cola Intl. has controlled sales via: 

Geographic Market Organization



They have invested millions in their R&D facility to maintain Product Quality Control.



The overall strategic control is implemented in all plants and factories throughout the 200 countries which Coca Cola proudly serves.

SUGGESTIONS AND FINDINGS 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 or suggestions as and when they feel. 

Currently in there is more demand of Coke, the company can extend their portfolio by introducing new flavors.



It is observed that people less sweet cola drink. So the Coca -Cola Company should think about bringing innovations in their products for example new diet flavors or maybe more juices so as to fulfill the need of local market.



Marketing team should try to increase the availability of Coke in rural areas.



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 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 ment to keep alive the general awareness in the whole market as a whole.



The company should be always in a position to receive continuous and suggestions from its customers



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 ment they can also introduce a brand ambassador, because most of the consumers ment 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.

 Competition with local drink like- Fruit juice, lemon water, sharbat & lassi.tea  C/s problems.  

Irregular supply in small villages . Find purity Coca-Cola visicoolers.



I find so many OYC, VISI, D-FREEZE & other company freeze in different areas in differ region.



Found so many outlets they want visi coolers from Coca-Cola.



Also found dead & useless coolers.



Some retailers complain about the service &repair of coolers.

CONCLUSION During the course of the project I realized that the customer willingly answered the closed end questions.

From the analysis of the data collected and from the experiences I have reached the following conclusions: COKE is most popular amongst its s 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. But most of the consumers prefer THUMSUP as their 1st preference, and then COKE we comes to the conclusion that visibility affects the sales of project in a very special way. And in of the ments lays is lacking behind,. Mostly consumers the ment because of the frequency of add and brand ambassadors, creativity. After acquiring a new customer, there is lot of importance of its retention also. This can be done only by providing extra flavors and good taste in today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the best. Customer is no more loyal in today’s scenario, so you need to be always on your toes. We feel that there is cutthroat competition between COKE,PEPSI,THUMSUP so to be on top of mind of the customers they need to do something outstanding every time