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A STUDY ON “PROMOTIONAL ACTIVITES”

WITH SPECIAL REFERENCE TO THE HCCB PVT LTD,

VISAKHAPATNAM.

SUMMER INTERNSHIP PROJECT REPORT

Submitted in partial fulfillment of the requirement for the award of

Post Graduate Diploma in Business Management

(Recognized by A.I.C.T.E., Ministry of H.R.D)

Submitted By
V. RAVITEJA
Enrollment No.: 23037
(2009-2011)

Under the esteemed guidance of


Mr. KIRAN OMMI
ASSOCIATE PROFESSOR

INGEGRAL INSTITUTE OF ADVANCED MANAGEMENT


VISAKHAPATNAM- 530017

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DECLARATION

I hereby declare that this project report entitled “PROMOTIONAL

ACTIVITIES” with reference to HINDUSTAN COCA-COLA BEVERAGE PVT

LTD, Visakhapatnam, was prepared by me during the period of summer project. The

project work is not submitted to any other university or institute or published before for

the award of Degree.

DATE: (V.Ravi teja)

PLACE :VISAKHAPATNAM Roll No. : 23049

Sec : A

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CERTIFICATE

This is to certify that RAVITEJA, Reg.No. 23037 of Second Semester MBA has

successfully completed the project entitled PROMOTIONAL ACTIVITIES OF

HINDUSTAN COCA-COLA BEVERAGE PVT LTD in partial fulfillment for the

award post graduation diploma of business management.

It was completed under the guidance of Mr.Kiran Ommi, Associate Professor of


IIAM.

Project Guide Director

(Prof. Kiran Ommi ) (PROF.B.PARVATHESWARAO)

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ACKNOWLEDGEMENT

Every endeavor undertaken to accomplish challenging goals, can only be

successful under the experienced and encouraging guidance. Therefore it has been my

privilege to get the benefit from many quarters.

My heartful thanks to Mr.Ch.Srinivasulu (HR), for giving me a golden opportunity for

doing the dissertation work as per specialization area. I express my sincere gratitude of my

project guides Mr.K.V.Rao (Sr.Executive) and Mr.B.S.S.Arjun Rao(Executive-CDE) for

his valuable suggestions and ideas.

I also thankful to Mr.Ch.Ramalingeswar Rao (ASM) for being supportive at all time

during my project work.

I wish to express my heartiest gratitude to our director PROF.B.PARVATHESWARAO and

my project guide Prof. Kiran Ommi .

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My appreciation run deep to all those who have helped me directly and indirectly in

successful completion of the dissertation.

CONTENTS

CHAPTER-I

 Introduction……………………………………………………………….

 Objectives………………………………………………………………….

 Methodology……………………………………………………………….

 Limitations…………………………………………………………………

 Need for the study ………………………………………………………….

CHAPTER-II

 Industry at glance……………………………………………………….

CHAPTER-III

 Company profile………………………………………………………….

CHAPTER-IV

 Detail study on promotional activities………………………………….

 Theoretical frame work………………………………………………….

CHAPTER-V

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 Interpretation & analysis………………………………………………..

CHAPTER-VI

 Findings……………………………………………………………………

 Suggestions………………………………………………………………..

 Summary………………………………………………………………….

 Conclusion…………………………………………………………………

CHAPTER-VII

 Annexure…………………………………………………………………..

CHAPTER-VIII

 Bibliography……………………………………………………………….

INTRODUCTION

The four main fields of the Marketing mix.The term "marketing mix" was first used in
1953 when Neil Borden, in his American Marketing Association presidential address,
took the recipe idea one step further and coined the term "marketing-mix". A prominent
marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen
wide use. The four Ps concept is explained in most marketing textbooks and classes.

Elements of the marketing mix are often referred to as 'the four Ps':

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• Product - A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units. Intangible products
are service based like the tourism industry & the hotel industry or codes-based
products like cellphone load and credits. Typical examples of a mass produced
tangible object are the motor car and the disposable razor. A less obvious but
ubiquitous mass produced service is a computer operating system. Packaging also
needs to be taken into consideration.
• Price – The price is the amount a customer pays for the product. It is determined
by a number of factors including market share, competition, material costs,
product identity and the customer's perceived value of the product. The business
may increase or decrease the price of product if other stores have the same
product.
• Place – Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well as
virtual stores on the Internet.

• Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public relations,
word of mouth and point of sale. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in film
promotion. Advertising covers any communication that is paid for, from cinema
commercials, radio and Internet adverts through print media and billboards.
Public relations are where the communication is not directly paid for and includes
press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs
and events. Word of mouth is any apparently informal communication about the
product by ordinary individuals, satisfied customers or people specifically

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engaged to create word of mouth momentum. Sales staff often plays an important
role in word of mouth and Public Relations (see Product above).

Broadly defined, optimizing the marketing mix is the primary responsibility of marketing.
By offering the product with the right combination of the four Ps marketers can improve
their results and marketing effectiveness. Making small changes in the marketing mix is
typically considered to be a tactical change. Parm Bains says making large changes in any
of the four Ps can be considered strategic. For example, a large change in the price, say
from $19.00 to $39.00 would be considered a strategic change in the position of the
product. However a change of $130 to $129.99 would be considered a tactical change,
potentially related to a promotional offer.

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PROMOTIONAL STRATEGIES

Another one of the 4P's is 'promotion'. This includes all of the tools available to the
marketer for 'marketing communication'. As with Neil H.Borden's marketing mix,
marketing communications has its own 'promotions mix.' Think of it like a cake mix, the
basic ingredients are always the same. However if you vary the amounts of one of the
ingredients, the final outcome is different. It is the same with promotions. You can
'integrate' different aspects of the promotions mix to deliver a unique campaign.
The elements of the promotions mix are:

• Personal Selling.
• Sales Promotion.
• Public Relations.
• Direct Mail.
• Trade Fairs and Exhibitions.
• Advertising.
• Sponsorship.

The elements of the promotions mix are integrated to form a coherent campaign. As with
all forms of communication. The message from the marketer follows the
'communications process' as illustrated above. For example, a radio advert is made for a
car manufacturer. The car manufacturer (sender) pays for a specific advert with contains
a message specific to a target audience (encoding). It is transmitted during a set of
commercials from a radio station (Message / media).
The message is decoded by a car radio (decoding) and the target consumer interprets the
message (receiver). He or she might visit a dealership or seek further information from a
web site (Response). The consumer might buy a car or express an interest or dislike
(feedback). This information will inform future elements of an integrated promotional

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campaign. Perhaps a direct mail campaign would push the consumer to the point of
purchase. Noise represent the thousand of marketing communications that a consumer is
exposed to everyday, all competing for attention.

PROMOTION MIX

Let us look at the individual components of the promotions mix in more detail.
Remember all of the elements are 'integrated' to form a specific communications
campaign. It is not enough for a business to have good products sold at attractive prices.
To generate sales and profits, the benefits of products have to be communicated to
customers. In marketing, this is commonly known as "promotion".

PROMOTION IS ALL ABOUT COMPANIES COMMUNICATING WITH


CUSTOMERS.

A business' total marketing communications programme is called the "promotional mix"


and consists of a blend of advertising, personal selling, sales promotion and public
relations tools. In this revision note, we describe the four key elements of the promotional
mix in more detail. It is helpful to define the four main elements of the promotional mix
before considering their strengths and limitations.

1. Personal Selling.
Personal Selling is an effective way to manage personal customer relationships. The sales
person acts on behalf of the organization. They tend to be well trained in the approaches
and techniques of personal selling. However sales people are very expensive and should
only be used where there is a genuine return on investment. For example salesmen are
often used to sell cars or home improvements where the margin is high.
A process of helping and persuading one or more prospects to purchase a good or service
or to act on any idea through the use of an oral presentation. Examples: Sales

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presentations, sales meetings, sales training and incentive programs for intermediary
salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

2. Sales Promotion.
Sales promotion tend to be thought of as being all promotions apart from advertising,
personal selling, and public relations. For example the BOGOF promotion, or Buy One
Get One Free. Others include couponing, money-off promotions, competitions, free
accessories (such as free blades with a new razor), introductory offers (such as buy digital
TV and get free installation), and so on. Each sales promotion should be carefully costed
and compared with the next best alternative. Media and non-media marketing
communication are employed for a pre-determined, limited time to increase consumer
demand, stimulate market demand or improve product availability. Examples: Coupons,
sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade
shows, trade-ins, and exhibitions.

3. Public Relations (PR)


Public Relations is defined as 'the deliberate, planned and sustained effort to establish and
maintain mutual understanding between an organization and its publics' (Institute of
Public Relations). It is relatively cheap, but certainly not cheap. Successful strategies tend
to be long-term and plan for all eventualities. All airlines exploit PR; just watch what
happens when there is a disaster. The pre-planned PR machine clicks in very quickly with
a very effective rehearsed plan. The product can be as good as possible, but if the
company has a bad image already, people won't trust in the company, and won't be
buying the product.

4. Direct Mail
Direct mail is very highly focussed upon targeting consumers based upon a database. As
with all marketing, the potential consumer is 'defined' based upon a series of attributes
and similarities. Creative agencies work with marketers to design a highly focussed
communication in the form of a mailing. The mail is sent out to the potential consumers

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and responses are carefully monitored. For example, if you are marketing medical text
books, you would use a database of doctors' surgeries as the basis of your mail shot.

5. Trade Fairs and Exhibitions


Such approaches are very good for making new contacts and renewing old ones.
Companies will seldom sell much at such events. The purpose is to increase awareness
and to encourage trial. They offer the opportunity for companies to meet with both the
trade and the consumer. Expo has recently finish in Germany with the next one planned
for Japan in 2005, despite a recent decline in interest in such events. . You make your
product, and let potential buyers try the product, this way, you know directly what people
see in your product. The downside, your competitor can see exactly what you are doing.

6. Advertising
Advertising is a 'paid for' communication. It is used to develop attitudes, create
awareness, and transmit information in order to gain a response from the target market.
There are many advertising 'media' such as newspapers (local, national, free, trade),
magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor
advertising (such as posters, bus sides).

7. Sponsorship
Sponsorship is where an organization pays to be associated with a particular event, cause
or image. Companies will sponsor sports events such as the Olympics or Formula One.
The attributes of the event are then associated with the sponsoring organization.
The elements of the promotional mix are then integrated to form a unique, but coherent
campaign.

ADVANTAGES AND DISADVANTAGES OF EACH ELEMENT OF


THE PROMOTIONAL MIX

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Mix Element Advantages Disadvantages
Advertising Good for building awareness Impersonal - cannot answer all a
customer's questions
Effective at reaching a wide
audience Not good at getting customers to
make a final purchasing decision
Repetition of main brand and
product positioning helps build
customer trust
Personal Selling Highly interactive - lots of Costly - employing a sales force
communication between the buyer has many hidden costs in addition
and seller to wages

Excellent for communicating Not suitable if there are thousands


complex / detailed product of important buyers
information and features

Relationships can be built up -


important if closing the sale make
take a long time
Sales Promotion Can stimulate quick increases in If used over the long-term,
sales by targeting promotional customers may get used to the
incentives on particular products effect

Good short term tactical tool Too much promotion may damage
the brand image
Public Relations Often seen as more "credible" - Risk of losing control - cannot
since the message seems to be always control what other people
coming from a third party (e.g. write or say about your product
magazine, newspaper)

Cheap way of reaching many


customers - if the publicity is
achieved through the right media

PROMOTION THROUGH THE PRODUCT LIFE CYCLE

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As products move through the four stages of the product lifecycle different promotional
strategies should be employed at these stages to ensure the healthy success and life of the
product .

Stages and promotion strategies employed.

Introduction

When a product is new the organisations objective will be to inform the target audience
of its entry. Television, radio, magazine, coupons etc may be used to push the product
through the introduction stage of the lifecycle. Push and Pull Strategies will be used at
this crucial stage.

Growth

As the product becomes accepted by the target market the organisation at this stage of the
lifecycle the organisation works on the strategy of further increasing brand awareness to
encourage loyalty.

Maturity

At this stage with increased competition the organisation take persuasive tactics to
encourage the consumers to purchase their product over their rivals. Any differential
advantage will be clearly communicated to the target audience to inform of their benefit
over their competitors.

Decline

As the product reaches the decline stage the organisation will use the strategy of
reminding people of the product to slow the inevitable

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INTERNET PROMOTION

The development of the world wide web has changed the business environment forever.
Dot com fever has taken the industry and stock markets by storm. The e-commerce
revolution promises to deliver a more efficient way of conducting business. Shoppers can
now purchase from the comfort of their home 24 hours a day 7 days a week.

Owning a website is a now a crucial ingredient to the marketing mix strategy of an


organisation. Consumers can now obtain instant information on products or services to
aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular
Playstaion 2 console over the net, which topped a 1 million after a few days, European
football stars are now issuing press releases over the web with the sites registered under
their own names. Hit rates are phenomenal.

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Advertisers have now moved their money over to the internet as customers are on
average spending more time online then watching TV. Popular ways to advertise seem to
be with banners and pop ups.

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Objective of
the project

OBJECTIVES OF THE STUDY

This study was conducted with an objective of getting an insight into PROMOTIONAL
ACTIVITIES OF HINDUSTAN COCA-COLA BEVERAGE PVT LTD in
VISAKHAPATNAM and customers attitudes toward all the coke products.

 To get awareness of the promotional activities and how it functions in

HINDUSTAN COCA-COLA BEVERAGE PRIVATE LIMITED. .

 To find out the effectiveness of promotional activities of HINDUSTAN COCA-

COLA BEVERAGE PRIVATE LIMITED.

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 To know how the company is achieving the competitive advantage through

promotional activities.

 To understand the consumer purchase behavior based on the promotional

activities.

 To find out the role of promotional activities of HINDUSTAN COCA-COLA

BEVERAGE PVT LTD for the retention of customers .

 To identify the features that influence the customer for selecting the coke brands.

 To provide the suggestions to coke regarding the improvements in promotional

activities.

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Research
Methodology

METHODOLOGY

RESEARCH METHODOLOGY

Population : finite (approx-75)


Sample size: 100 (outlets are taken as the sample)

SAMPLING TECHNIQUE

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Fact expressed in quantitative from can be termed as “data”. Date may be classified either
as “primary data” or “secondary data”.

PRIMARY DATA :

The primary data will be collected with the help of a structural questionnaire targeting the
consumers. The questions consists of 15 and this questions involve the impact of
promotional activities on companies sales as well as consumer purchase behavior and the
benefits more which they are desired.

SECONDARY DATA:

The secondary data implies the data that is already available and collected and analyzed
and other information in form news papers and magazines. The secondary data required
for the study was obtained from the Hindustan Cocacola Beverage Private Limited
records and websites like www.coca-colaindia.com

SOURCES OF DATA

After the objective has been stated clearly, the next task was to collect relevant data
regarding the research study. The data regarding the Indian SOFT DRINK scenario and

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HINDUSTAN COCA-COLA BEVERAGE PVT LTD were collected from the
internet. And other relevant data were also collected from internet. Although there were
some data from newspaper and magazines but the major portion was given by the
company i.e. the MARKETING MANAGER of the department.

Most of the data and figures were collected from the record of the company. In fact the
above collected data was not enough so there was need of primary source of data. So the
primary data involved data collected from customers.

DATA COLLECTION INSTRUMENT

The basic instrument used in collecting the data in this survey is the questionnaire. Apart
from that I have also gone through the record of the company. The data collection from
the above include:

1. Data regarding HINDUSTAN COCA-COLA BEVERAGE PVT LTD.

2. Data regarding the various product of coke.

3. Data regarding the soft drink industry in india.

4. Data regarding effect of promotional activity done by HINDUSTAN COCA-


COLA BEVERAGE PVT LTD.

5. Data regarding the availability of the product and price of the product.

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The questionnaire was prepared by me under the guidance of the marketing manager of

the HINDUSTAN COCA-COLA BEVERAGE PVT LTD. Although most of the

questions were useful but some of the questions were not answered properly. Some

question like Why they enrolled particularly to the promo that they are using currently

and any suggestions regarding promotional activity were not answered.

NEED FOR THE STUDY

Coca Cola is a famous carbonated soft drink that is preferred by every person. It is
produced by the Coca-Cola Company. 'Coke' is the name as it is sometimes known has
dominated the soft drink world. Every person who drinks a Coca-Cola enjoys a moment
of refreshment and shares an experience that millions of others have savored. All of those
individual experiences combined have created a worldwide phenomenon – a truly global
brand.

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It has a hugged turnover and profits and some even it gave birth to many varieties of
drinks .As HINDUSTAN COCA-COLA BEVERAGE PVT LTD, which has a
maximum exposure to the market, occupies a very important place in our state , a
thorough survey is made to know about the PROMOTIONAL ACTIVITIES and
customers attitudes toward all the coke products.

The aim of the study is to examine and evaluate how the promotional activities are
playing the major role in the company’s success, how the promotional activities are
useful to the customers as well as showing impact on consumers purchase behaviour.

Keeping in view, a thorough study is made with various factors such as factors
considered for adopting coke products, promo they are using currently, promotional
activities of coke and so on…..

LIMITATIONS

Some of the limitations felt and faced were;

 The area selected was limited to Visakhapatnam only. the findings are regional

and do not represent state or country.

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 The data which is used in the study was given by the Guide and which was

assumed to be true.

 There is a possibility of biased answers from the respondents hence the

information collected might not be an accurate one

 Lack of customers viability for the interview.

 The study will be undergone with in the limited period of only 45 days

 Some of the finding have been taken in the research are based on opinion,

attitudes, feelings and perceptions its few respondents .so we cannot take for

granted the opinions and presumption of all the consumer.

 The major limitation in my study is, as of the customers are illiterates they were

scared to answer the questions correctly.

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INDUSTRY

PROFILE

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INDUSTRY PROFILE

INTRODUCTION

Soft drink market size for FY08 was around 7480 mn cases. The market witnessed 7- 9%
growth in the early‘20s. Presently the market growth has growth rate of 9- 11% per
annum compared to 22% growth rate in the previous year. The market size for FY09 is
expected to be 10000 mn bottles.Soft Drink Production are the market preference is
highly regional based.

While cola drinks have main markets in metro cities and northern states of UP, Punjab,
Haryana etc. Orange flavored drinks are popular in southern states. Sodas too are sold
largely in southern states besides sale through bars. Western markets have preference
towards mango flavored drinks. Diet coke presently constitutes just 0.7% of the total
carbonated beverage market.

GROWTH PROMOTIONAL ACTIVITIES

The government has adopted liberalized policies for the soft drink trade to give the
industry a boast and promote the Indian brands internationally. Although the import and
manufacture of international brands like Coke and pepsi is enhanced in India the local
brands are being stabilized by advertisements, good quality and low cost.
The soft drinks market till early 1990s was in hands of domestic players like campa,
thumps up, Limca etc but with opening up of economy and coming of MNC players
Coke and pepsi the market has come totally under their control.

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BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
In India, beverages form an important part of the lives of people. It is an industry, in
which the players constantly innovate, in order to come up with better products to gain
more consumers and satisfy the existing consumers.
The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:
• Alcoholic, non-alcoholic and sports beverages

• Natural and Synthetic beverages

• In-home consumption and out of home on premises consumption.

• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

FIGURE 1: BEVERAGE INDUSTRY IN INDIA

TYPES AVAILBLE

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Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
The market can also be segmented on the basis of types of products into cola products
and non-cola products. Cola products account for nearly 61-62% of the total soft drinks
market. The brands that fall in this category are Coca- Cola, Thumps Up, diet coke,Pepsi
etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on
the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango.

Soft drinks can trace their history back to the mineral water found in natural springs.
Bathing in natural springs has long been considered a healthy thing to do and mineral
water was said to have curative powers. Scientists soon discovered that gas carbonium or
carbon dioxide was behind the bubbles in natural mineral water. The first marketed soft
drinks (non-carbonated) appeared in the 17th century.

They were made from water and lemon juice sweetened with honey. In 1676, the
Compagnie de Limonadiers of Paris were granted a monopoly for the sale of lemonade
soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of
the soft drink to thirsty Parisians.

JOSEPH PRIESTLEY

In 1767, the first drinkable man-made glass of carbonated water was created by
Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torbern
Bergman invented a generating apparatus that made carbonated water from chalk by the
use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced
in large amounts.

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JOHN MATHEWS

In 1810, the first United States patent was issued for the "means of mass manufacture of
imitation mineral waters" to Simons and Rundell of Charleston, South Carolina.
However, carbonated beverages did not achieve great popularity in America until 1832,
when John Mathews invented his apparatus for the making carbonated water. John
Mathews then mass-manufactured his apparatus for sale to soda fountain owners.

Soft drinks by definition are carbonated drinks that are non-alcoholic. Carbonated soft
drinks are also refereed to as soda, soda pop, pop, or tonic.

• 1798 The term "soda water" first coined.

• 1810 First U.S. patent issued for the manufacture of imitation mineral waters.

• 1819 The "soda fountain" patented by Samuel Fahnestock.

• 1835 The first bottled soda water in the U.S.

• 1850 A manual hand & foot operated filling & corking device, first used for

bottling soda water.

• 1851 Ginger ale created in Ireland.

• 1861 The term "pop" first coined.

• 1874 The first ice-cream soda sold.

• 1876 Root beer mass produced for public sale.

• 1881 The first cola-flavored beverage introduced.

• 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.

• 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

• 1892 William Painter invented the crown bottle cap.

• 1898 "Pepsi-Cola" is invented by Caleb Bradham.

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• 1899 The first patent issued for a glass blowing machine, used to produce glass

bottles.

• 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.

• 1919 The American Bottlers of Carbonated Beverages formed.

• 1920 The U.S. Census reported that more than 5,000 bottlers now exist.

• Early 1920's The first automatic vending machines dispensed sodas into cups.

• 1923 Six-pack soft drink cartons called "Hom-Paks" created.

• 1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-

Lime Sodas" later called "7 Up". Invented by Charles Leiper Grigg.

• 1934 Applied color labels first used on soft drink bottles, the coloring was baked

on the face of the bottle.

• 1952 The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold

by Kirsch.

• 1957 The first aluminum cans used.

• 1959 The first diet cola sold.

• 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of

Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

• 1963 The Schlitz Brewing company introduced the "Pop Top" beer can to the

nation in March, invented by Ermal Fraze of Kettering, Ohio.

• 1965 Soft drinks in cans dispensed from vending machines.

• 1965 The resealable top invented.

• 1966 The American Bottlers of Carbonated Beverages renamed The National Soft

Drink Association.

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• 1970 Plastic bottles are used for soft drinks.

• 1973 The PET (Polyethylene Terephthalate) bottle created.

• 1974 The stay-on tab invented. Introduced by the Falls City Brewing Company of

Louisville, KY.

• 1979 Mello Yello soft drink is introduced by the Coca Cola company as

competition against Mountain Dew.

• 1981 The "talking" vending machine invented.

A soft drink (widely referred to as soda, pop, or soda pop) is a drink that typically
contains no alcohol, though may contain small amounts [1]( typically less than 0.5% by
volume) and is usually referred to as a sugary drink. Soft drinks are often carbonated and
commonly consumed while chilled or at room temperature. Some of the most common
soft drinks include cola, flavored water, sparkling water, iced tea, sweet tea, sparkling
lemonade (or other lemon-lime soft drinks), squash, fruit punch, root beer, orange soda,
grape soda, cream soda, and ginger ale.

The term "soft" is employed in opposition to "hard", i.e. drinks with high alcoholic
content by volume. Generally it is also implied that the drink does not contain milk or
other dairy products. Hot chocolate, hot tea, coffee, tap water, juice and milkshakes also
do not fall into this classification. Many carbonated soft drinks are optionally available in
versions sweetened with sugars or with non-caloric sweeteners, such as diet soda.

The earliest soft drinks were sherbets developed by Arabic chemists and originally served
in the medieval Near East. These were juiced soft drinks made of crushed fruit, herbs, or
flowers. From around 1265, a popular drink known as Dandelion & Burdock appeared in
England, made from fermented dandelion (Taraxacum officinale) and burdock (Arctium
lappa) roots, and is naturally carbonated. The drink (similar to sarsapirilla) is still
available today, but is made with flavorings and carbonated water, since the safrole in the
original recipe was found to be carcinogenic.

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The first marketed soft drinks (non-carbonated) in the Western world appeared in the
17th century. They were made from water and lemon juice sweetened with honey. In
1676, the Compagnie des Limonadiers of Paris was granted a monopoly for the sale of
lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed
cups of the soft drink to thirsty Parisians.

CARBONATED DRINKS

In late 18th century, scientists made important progress in replicating naturally


carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a
method of infusing water with carbon dioxide to make carbonated water when he
suspended a bowl of distilled water above a beer vat at a local brewery in Leeds,
England. His invention of carbonated water, (also known as soda water), is the major and
defining component of most soft drinks. Priestley found water thus treated had a pleasant
taste, and he offered it to friends as a refreshing drink. In 1772, Priestley published a
paper entitled Impregnating Water with Fixed Air in which he describes dripping oil of
vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide gas, and
encouraging the gas to dissolve into an agitated bowl of water.

Another Englishman, John Mervin Nooth, improved Priestley's design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented
a generating apparatus that made carbonated water from chalk by the use of sulfuric acid.
Bergman's apparatus allowed imitation mineral water to be produced in large amounts.
Swedish chemist Jöns Jacob Berzelius started to add flavors (spices, juices and wine) to
carbonated water in the late 18th century.

SODA FOUNTAIN PIONEERS

Artificial mineral waters, usually called "soda water," and the soda fountain made the
biggest splash in the United States. Beginning in 1806, Yale chemistry professor
Benjamin Silliman sold soda waters in New Haven, Connecticut. He used a Nooth

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apparatus to produce his waters. Businessmen in Philadelphia and New York City also
began selling soda water in the early 1800s. In the 1830s, John Matthews of New York
City and John Lippincott of Philadelphia began manufacturing soda fountains. Both men
were successful and built large factories for fabricating fountains.

SODA FOUNTAINS VS BOTTLED SODAS

The drinking of either natural or artificial mineral water was considered a healthy
practice. The American pharmacists selling mineral waters began to add herbs and
chemicals to unflavored mineral water. They used birch bark (see birch beer), dandelion,
sarsaparilla, fruit extracts, and other substances. Flavorings were also added to improve
the taste. Pharmacies with soda fountains became a popular part of American culture.
Many Americans frequented the soda fountain on a daily basis. Due to problems in the
U.S. glass industry, bottled drinks were a small portion of the market in the 19th century.

(They were certainly known in England, though. In The Tenant of Wildfell Hall,
published in 1848, the caddish Huntingdon, recovering from months of debauchery,
wakes at noon and gulps a bottle of soda-water.[7]) In America, most soft drinks were
dispensed and consumed at a soda fountain, usually in a drugstore or ice cream parlor. In
the early 20th century, sales of bottled soda increased exponentially. In the second half of
the 20th century, canned soft drinks became an important share of the market.

SOFT DRINK BOTTLING INDUSTRY

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink
bottle tops during the early days of the bottling industry. Carbonated drink bottles are

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under a lot of pressure from the gas. Inventors were trying to find the best way to prevent
the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was
patented by William Painter, a Baltimore machine shop operator. It was the first very
successful method of keeping the bubbles in the bottle.

AUTOMATIC PRODUCTION OF GLASS BOTTLES

In 1899, the first patent was issued for a glass-blowing machine for the automatic
production of glass bottles. Earlier glass bottles had all been hand-blown. Four years
later, the new bottle-blowing machine was in operation. It was first operated by the
inventor, Michael Owens, an employee of Libby Glass Company. Within a few years,
glass bottle production increased from 1,400 bottles a day to about 58,000 bottles a day.

HOME-PAKS AND VENDING MACHINES

During the 1920s, the first "Home-Paks" were invented. "Home-Paks" are the familiar
six-pack cartons made from cardboard. Automatic vending machines also began to
appear in the 1920s.

SOFT DRINK PRODUCTION

Soft drinks are made either by mixing dry ingredients and/or fresh ingredients (e.g.
lemons, oranges, etc.) with water. Production of soft drinks can be done at factories, or at
home.Soft drinks can be made at home by mixing either a syrup or dry ingredients with
carbonated water. Carbonated water is made using a home carbonation system or by
dropping dry ice into water. Syrups are commercially sold by companies such as Soda-
Club.

SOFT DRINK PACKAGING

U.S. containers in 2008. Various sizes from 8-67.6 US fl oz (237 ml -2 l) shown in can,
glass and plastic bottles.In the United States, soft drinks are sold in 3, 2, 1.5, 1 liter, 500
ml, 8, 12, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce cans, and short

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eight-ounce cans. Some Coca-Cola products can be purchased in 8 and 12 U.S. fluid
ounce glass bottles. Jones Soda and Orange Crush are sold in 16 U.S. fluid ounce (1 U.S.
pint) glass bottles. Cans are packaged in a variety of quantities such as six packs, 12
packs and cases of 24, 36 and 360. With the advent of energy drinks sold in eight-ounce
cans in the US, some soft drinks are now sold in similarly sized cans. It is also common
for carbonated soft drinks to be served as fountain drinks in which carbonation is added
to a concentrate immediately prior to serving.

In Europe, soft drinks are typically sold in 2, 1.5, 1 litre, 500 ml plastic or 330 ml glass
bottles; aluminium cans are traditionally sized in 330 ml, although 250 ml slim cans have
become popular since the introduction of canned energy drinks and 355 ml variants of the
slim cans have been introduced by Red Bull more recently. Cans and bottles often come
in packs of six or four. Several countries have standard recyclable packaging with a
container deposit, typically ranging from € 0.15 to 0.25. The bottles are smelted, or
cleaned and refilled; cans are crushed and sold as scrap aluminium.

In Australia, soft drinks are usually sold in 375 ml cans or glass or plastic bottles. Bottles
are usually 390 ml, 600 ml, 1.25 or 2 litre. However, 1.5 litre bottles have more recently
been used by the the Coca-Cola Company. South Australia is the only state to offer a
container recycling scheme, recently having lifted the deposit from 5 cents to 10 cents.

This scheme is also done in the Philippines; people usually buy glass bottles and return
them in exchange for a small amount of money.In Canada, soft drinks are sold in cans of
236 ml, 355 ml, 473 ml, and bottles of 591 ml, 710 ml, 1 l, 1.89 l, and 2 l. The odd sizes
are due to being the metric near-equivalents to 8, 12, 16, 20, 24 and 64 U.S. fluid ounces.
This allows bottlers to use the same-sized containers as in the U.S. market. This is an
example of a wider phenomenon in North America. Brands of more international soft
drinks such as Fanta and Red Bull are more likely to come in round-figure capacities.

In India, soft drinks are available in 200 ml and 300 ml glass bottles, 250 ml and 330 ml
cans, and 600 ml, 1.25 l, 1.5 l and 2 l plastic bottles.

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SOFT DRINKS IN INDIA

Euromonitor 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.

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.

COMPANIES REPOSITION THEIR BRANDS AND UPDATE


PRODUCT PORTFOLIOS

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 Bisleri’s 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

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extend their product portfolios to emerging categories such as 100% juice, energy drinks
and flavoured 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 high-
growth 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 upmarket shopping
centres introduced consumers to new products, such as sports drinks and flavoured 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

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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
unorganised 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.

For a number of years the main competition in the non - alcoholic sector was the battle
between Coke and Pepsi for the cola market. But as the customer preferences and
concerns started to change, the industry's giants have begun relying on new product
flavours and looking to noncarbonated beverages for growth. Globally, the market size of
this industry has been changing. Soft drink consumption has a market share of 46.8%
within the non-alcoholic drink industry. Datamonitor (2005) also found that the total
market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of
$367.1 billion in 2009.

The modern soft drink industry started in 1886, when Dr. John S. Pemberton invented
"Coca Cola" in Atlanta, Georgia. This was followed by the invention of "Pepsi cola" in
1898 by Caleb Bradham. In India the two major player Coca cola and Pepsi made their
entries in 1977 but then the market was not that much friendly to the foreign companies.
More over the political situation was also not conducive for the foreign companies. But
later on the situation post reforms began to look up for these two giants. In 1990 Pepsi-
Cola went on sale in India for the first time in 28 years after a six-year battle to sell the
US soft drink in India. In 1997, to ensure fast re-entry, Coca Cola paid $40 million to buy
the biggest Indian soft-drink brands, including ThumsUp, from a family-owned business.
In recent years the soft drink industry in India has been hit by the concerns over health
and environmental aspects.

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COMPANY
PROFILE

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COMPANY PROFILE

In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from
Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged
brass kettle in his backyard. The name was a suggestion given by John Pemberton's book
keeper Frank Robinson. It was a prohibition law, enacted in Atlanta in 1886, that
persuaded physician and chemist Dr. John Stith Pemberton to rename and rewrite the
formula for his popular nerve tonic, stimulant and headache remedy, "Pemberton's French
Wine Coca," sold at that time by most, if not all, of the city's druggists.

So when the new Coca-Cola debuted later that year - still possessing "the valuable tonic
and nerve stimulant properties of the coca plant and cola nuts," yet sweetened with sugar
instead of wine - Pemberton advertised it not only as a "delicious, exhilarating, refreshing
and invigorating" soda-fountain beverage but also as the ideal "temperance drink." It is
said coke was discovered when DeLuise, a 19th century American soda jerk accidentally
hit the soda water spigot, adding carbonated water to the syrup in the glass. The result
was a "happy accident": the invention of Coca-Cola.

Though Pemberton died just two years later - five months, in fact, after his March 24,
1888, filing for incorporation of the first Coca-Cola Co. - the trademark he and his
partners created more than one hundred years ago can claim wider recognition today than
that of any other brand in the world.

JOHN PEMBERTON
And the Coca-Cola beverage, whose unit sales totaled a mere 3,200 servings in 1886
("nine drinks per day" based on the twenty-five gallons of syrup sold to drugstores by
Pemberton Chemical Co.), is today called the world's most popular soft drink -
accounting for billions of servings at restaurants in 195 countries.

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Such is the commercial legacy of a onetime Confederate lieutenant colonel who earned
his medical degree at the age of nineteen, who served on the first Georgia pharmacy
licensing board, who set up a top-rated laboratory for chemical analysis and
manufacturing, and who, in his dozen-and-a-half years in Atlanta, established eighteen
business ventures - including one, the Coca-Cola Co., which now can boast 1995 sales in
excess of $15 billion.

Notwithstanding Pemberton's numerous professional and entrepreneurial


accomplishments, however, Coca-Cola historians characterize him as "a local
pharmacist" who concocted the world's most craved soft-drink syrup in a three-legged
brass pot in his backyard.

"Coca-Cola was not the creation of an inept, small-time corner druggist," said archivist
Monroe Martin King, who has spent twenty-one years researching the life of John
Pemberton - from his childhood in Rome, Ga., to his college days in Macon to his
enterprising years in Atlanta. "He's occasionally portrayed as a wandering medicine
man," King added. "But Dr. Pemberton worked in a fully outfitted laboratory and claimed
to manufacture every chemical and pharmaceutical preparation used in the arts and
sciences."

According to King, Pemberton's analytical laboratory became the first state-run facility to
conduct tests of soil and crop chemicals. It continues to be operated by the Georgia
Department of Agriculture. King further noted that Pemberton, who practiced medicine
and surgery as a young man and later became a trustee of the former Emory University
School of Medicine, earned a solid reputation for his skill in chemistry and his work in
medical reform.

But King feels the Coca-Cola Co. of today drew an accurate conclusion when it stated:
"Dr. Pemberton never fully realized the potential of the beverage he created." Indeed,
while Pemberton gets credit for the formula behind the Coca-Cola taste, he has had

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capable successors in Asa Candler, Robert Woodruff and Roberto Goizueta - men who
built the product and the company into an icon of pleasure and profit.

According to King, Pemberton actually remained more interested in expanding the


market for French Wine Coca, a product based on the formula for another extremely
popular coca-based beverage, Vin Mariani, which had been developed in Paris in 1863.
So when Atlanta's prohibition act was repealed in 1887, only a year after its passage,
Pemberton resumed the manufacture and sale of his original patent medicine, leaving his
son Charles to oversee the production of Coca-Cola.

Although Pemberton may have envisioned a future for his soft-drink creation--enticing
six Atlanta businessmen to invest in the start-up Coca-Cola enterprise--for reasons that
remain a mystery he soon began selling his interest in the formula.

"Dr. Pemberton . . . must have believed that it had little value and no potential assurance
of substantial success," said Charles Candler in a 1953 biographical sketch about his
father, titled "Asa Griggs Candler, Coca-Cola and Emory College."

Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first
scripted "Coca Cola" into the flowing letters which has become the famous logo of
today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy
in Atlanta on May 8, 1886.

About nine servings of the soft drink were sold each day. Sales for that first year added
up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in
expenses, so the first year of sales were a loss. Until 1905, the soft drink, marketed as a
tonic, contained extracts of cocaine as well as the caffeine-rich kola nut.

By the late 1890s, Coca-Cola was one of America's most popular fountain drinks. With
another Atlanta pharmacist, Asa Griggs Candler, at the helm, the Coca-Cola Company
increased syrup sales by over 4000% between 1890 and 1900.

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Advertising, was an important factor in Pemberton and Candler's success and by the turn
of the century, the drink was sold across the United States and Canada. Around the same
time, the company began selling syrup to independent bottling companies licensed to sell
the drink. Even today, the US soft drink industry is organized on this principle.

Asa Candler, who, according to King, had worked for Pemberton as early as 1872, wound
up, after a series of transactions, controlling the company within a short time of
Pemberton's death. By 1891 he owned all of the Coca-Cola business. Charles Candler
relates that one of his father's first missions was to change the original Pemberton
formula in order "to improve the taste of the product, to ensure its uniformity and its
stability."

According to Asa Candler's son, Candler hired Pemberton's former partner, Frank
Robinson. The two of them, "by adding essential ingredients and taking others out . . .
perfected the formula," Charles Candler said. In fact, it was Robinson who created the
Coca-Cola name and script logo, convincing the company to tie the classic slogan
"delicious and refreshing" into all future advertising.After the turn of the century, when
federal and state authorities began writing regulations to ban the sale of coca products
because of their supposed contamination with the drug cocaine, Coca-Cola lawyers
argued strenuously that their syrup contained only a minuscule flavor extract of the coca
leaf.

Coca-Cola attorneys also were called to battle against competitors who called the product
name a misrepresentation if, as argued, its principal ingredients were neither the coca leaf
nor the kola nut--a source of caffeine that made the early beverage useful in healing
headaches.Despite such obstacles, Candler's prowess as a merchandiser had driven the
widely promoted Coca-Cola beverage into "every state and territory in the United States"
by 1895. Considered a pioneer in coupon promotions, Candler offered two gallons of
Coca-Cola syrup "to any retailer or soda fountain man" who would dispense 128 free
servings (a gallon's worth) of the beverage to customers who showed up with one of his

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cards.Not only were syrup manufacturing facilities opening in such cities as Dallas,
Chicago and Los Angeles, but a network of bottlers was being created nationwide as
well. Under Woodruff's tenure, from 1923 until 1981, Coca-Cola rose from national to
international dominance--a move accompanied by the early, explosive growth of the
bottled beverage.By 1928 bottled sales had eclipsed fountain sales, thanks to the
pioneering introduction of a carton now popularly called the six-pack. The following year
the company introduced metal open-top coolers. Then in 1933 at the Chicago World Fair
automatic fountain dispensers made their debut. Having expanded the brand into fourty-
four countries by the outbreak of World War II, Woodruff, within fifteen years of the
war's end, had managed to double that number. "Now the saying is you have to be
global," said Goizueta, Coca-Cola's current chairman and chief executive. "We were
global when global wasn't cool."

Two decades later, when Coca-Cola's board elected Goizueta to the post of chairman and
chief executive, the company was embarked on a financial mission--to become one of the
best-performing corporations in America. Average annual fountain-sales growth under
Goizueta has continued to surge. And despite consumer uproar over the company's
attempted Coca-Cola reformulation in 1985, the introduction of Diet Coke in 1982 was
hailed as the most successful product launch of the past decade.Yet none of the
company's strides in marketing, international expansion, product innovation or profit
growth could have happened had it not been for Coca-Cola's inventor, John Pemberton.
Atlanta druggists--Asa Candler among them--closed their stores on the day of
Pemberton's funeral "and attended the services in mass as a tribute of respect," according
to newspaper records from that era. "On that day," declared archivist Monroe King, "not
one drop of Coca-Cola was dispensed in the entire city."

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Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at
the local soda fountain or ice cream saloon. Often housed in the drug store, the soda
fountain counter served as a meeting place for people of all ages. Often combined with
lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled
soft drinks, and fast food restaurants came to the fore.

On April 23, 1985, the trade secret "New Coke" formula was released. Today, products
of the Coca Cola Company are consumed at the rate of more than one billion drinks per
day.A trade secret is any information that allows you to make money because it is not
generally known. A trade secret could be a formula, computer program, process, method,
device, technique, pricing information, customer lists or other non-public information. If
the economic value of a piece of information relies on it being kept private, it could be a
trade secret.

One of the most famous examples of a trade secret is the formula for Coca-Cola. The
formula, also referred to by the code name "Merchandise 7X," is known to only a few
people within the company and kept in the vault of a bank in Atlanta, Georgia. The
individuals who know the secret formula have signed non-disclosure agreements, and it is
rumored that they are not allowed to travel together. In the past, you could not buy Coca-
Cola in India because Indian law required that trade-secret information be disclosed. In
1991, India changed its laws regarding trademarks, and Coca-Cola can now be sold in
that country. Trade secrets are very different from patents, copyrights and trademarks.
While patents and copyrights require you to disclose your information in the application
process (information that eventually becomes public), trade secrets require you to
actively keep the information secret. Trade-secret protection can potentially last longer
than that of patents (20 years) and copyrights (100 years). Some of the ways to protect a
trade secret are as follows:
• Restrict access to the information (lock it away in a secure place, such as a bank
vault).
• Limit the number of people who know the information.

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• Have the people who know the trade secret agree in writing not to disclose the
information (sign non-disclosure agreements).
• Have anyone that comes in contact with the trade secret, directly or indirectly,
sign non-disclosure agreements.
• Mark any written material pertaining to the trade secret as proprietary.

Trade secrets remain valid only as long as no one else has discovered the information
independently, the information has not been made public (by employees or published
literature) nor discovered by working backward from the original product/process or
publicly observing the product/process. If the trade secret is revealed in violation of a
non-disclosure agreement, you can sue for damages. However, once the secret is
revealed, it is hard to get the trade-secret status resumed. Trade secrets are protected
under many state laws, Federal statutes and some international laws.

FURTHER DEVELOPMENT OF THE DRINK

The Coca-Cola company started out as an insignificant one man business and over the
last one hundred and ten years it has grown into one of the largest companies in the
world. The first operator of the company was Dr. John Pemberton and the current
operator is Roberto Goizueta. Without societies help, Coca-Cola could not have become
over a 50 billion dollar business. Coca-Cola was invented by Dr. John Pemberton, an
Atlanta pharmacist. He concocted the formula in a three legged brass kettle in his
backyard on May 8, 1886. He mixed a combination of lime, cinnamon, coca leaves, and
the seeds of a Brazilian shrub to make the fabulous beverage (Things go better with
Coke 14). Coca-Cola debuted in Atlanta's largest pharmacy, Jacob's Pharmacy, as a five
cent non- carbonated beverage.
Later on, the carbonated water was added to the syrup to make the beverage that we
know today as Coca-Cola. Coca-Cola was originally used as a nerve and brain tonic and a
medical elixir. Coca-Cola was named by Frank Robinson, one of Pemberton's close
friends, he also penned the famous Coca-Cola logo in unique script. Dr. John Pemberton
sold a portion of the Coca-Cola company to Asa Candler, after Pemberton's death the

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remainder was sold to Candler. Pemberton was forced to sell because he was in a state of
poor health and was in debt. He had paid $76.96 for advertising, but he only made $50.00
in profits. Candler acquired the whole company for $2,300 (Coca-Cola multiple pages).
Candler achieved a lot during his time as owner of the company. On January 31, 1893,
the famous Coca-Cola formula was patented. He also opened the first syrup
manufacturing plant in 1884. His great achievement was large scale bottling of Coca-
Cola in 1899. In 1915, The Root Glass Company made the contour bottle for the Coca-
Cola company.

Candler aggressively advertised Coca-Cola in newspapers and on billboards. In the


newspapers, he would give away coupons for a free Coke at any fountain. Coca-Cola was
sold after the Prohibition Era to Ernest Woodruff for 25 million dollars. He gave Coca-
Cola to his son, Robert Woodruff, who would be president for six decades (Facts,
Figures, and Features Multiple pages). Robert Woodruff was an influential man in
Atlanta because of his contributions to area colleges, universities, businesses and
organizations. When he made a contribution, he would never leave his name, this is how
he became to be known as "Mr. Anonymous."

Woodruff introduced the six bottle carton in 1923. He also made Coca-Cola available
through vending machine in 1929, that same year, the Coca- Cola bell glass was made
available. He started advertising on the radio in the 1930s and on the television in 1950.
Currently Coca-Cola is advertised on over five hundred TV channels around the world. In
1931, he introduced the Coke Santa as a Christmas promotion and it caught on. Candler
also introduced the twelve ounce Coke can in 1960. The Coca-Cola contour bottle was
patented in 1977. The two liter bottle was introduced in 1978, the same year the company
also introduced plastic bottles (Coca-Cola multiple pages).

Woodruff did have one dubious distinction, he raised the syrup prices for distributors. But
he improved efficiency at every step of the manufacturing process. Woodruff also
increased productivity by improving the sales department, emphasizing quality control,
and beginning large-scale advertising and promotional campaigns. Woodruff made Coke

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available in every state of the Union through the soda fountain. For all of these
achievements he earned the name, "The Boss"
(Facts, Figures, and Features Multiple pages).

In 1985, the Coca-Cola Company made what has been known as one of the biggest
marketing blunder. The Coca-Cola company stumbled onto the new formula in efforts to
produce diet Coke. They put forth 4 million dollars of research to come up with the new
formula.

The decision to change their formula and pull the old Coke off the market came about
because taste tests showed a distinct preference for the new formula. The new formula
was a sweeter variation with less tang, it was also slightly smoother (Demott 54). Robert
Woodruff's death was a large contributor to the change because he stated that he would
never change Coca-Cola's formula. Another factor that influenced the change was that
Coke's market share fell 2.5 percent in four years. Each percentage point lost or gain
meant 200 million dollars. A financial analyst said, "Coke's market share fell from 24.3
percent in 1980 to 21.8 percent in 1984" (Things go better with Coke 14).

This was the first flavor change since the existence of the Coca- Cola company. The
change was announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln
Center. Some two hundred TV and newspaper reporters attended this very glitzy
announcement. It included a question and answer session, a history of Coca-Cola, and
many other elements (Oliver 131). The debut was accompanied by an advertising
campaign that revived the Coca-Cola theme song of the early 1970s, "I'd Like to Buy the
World a Coke" (Say it ain't so, Coke 24). The Jingle read like this: I'd like to teach the
world to sing In perfect harmony. I'd like to buy the world a Coke And keep it company.
The change to the world's best selling soft drink was heard by 81 percent of the United
States population within twenty-four hours of the announcement. Within a week of the
change, one thousand calls a day were flooding the company's eight hundred number (1-
800-GET-COKE). Most of the callers were shocked and/or outraged, many said that they
were considering switching to Pepsi. Within six weeks, the eight hundred number was

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being jammed by six thousand calls a day. The company also fielded over forty thousand
letters, which were all answered and each person got a coupon for the new Coke. A
retired Air Force officer, explained in a letter to the Coca-Cola company that he wanted
to be cremated and interred in a Coke can, but now that this change had come about he
was reconsidering (Pendergrast Multiple pages). Sharlotte Donneally, a thirty-six year old
anthropologist said, "I hate the new stuff" (Demott 60). Wendy Koskela, a thirty-five year
old vice president of an insurance company said, "It's too sweet. It tastes like Pepsi." She
also stated, "Real Coke had punch. This taste almost like it's flat" (Demott 60). Many
American consumers of Coca-Cola asked if they would have the final say. When Pepsi
heard that the Coca-Cola company was changing its secret formula they said that it was a
decision that Pepsi tastes better. Roger Enrico, the president and CEO of Pepsi-Cola
wrote a letter to every major newspaper in the U.S. to declare the victory, the letter read
like this (Oliver 128): It gives me great pleasure to offer each of you my heartiest
congratulations. After eighty-seven years of going at it eyeball to eyeball, the other guy
just blinked. Coca-Cola is withdrawing their product from the marketplace, and is
reformulating brand Coke to be more like Pepsi...There is no question the long-term
market success of Pepsi has forced this move...Maybe they finally realized what most of
us have known for years, Pepsi tastes better than Coke. Well, people in trouble tend to do
desperate things...and we'll have to keep our eye on them. But for now, I say, victory is
sweet, and we have earned a celebration. We're going to declare a holiday on Friday.
Enjoy! Best Regards, Roger Enrico President, CEO Pepsi-Cola USA Coca-Cola officials
said, "The new formula will boost Coke's share by 1 percent. That is worth 200 million
dollars a year." Coca-Cola management had to decide: Do nothing or "buy the world a
new Coke" (Things go better with Coke 14). They decided to develop the new formula.
Roberto Goizueta, the president of the Coca-Cola Company stated, "The old Coke
formula, with its secret flavoring ingredient, called Merchandise 7X, will stay locked in
the Trust Company of Georgia bank vault in Atlanta, never to be used again" (Demott et.
al 55). This is what many Coke officials said, "This is the most significant soft drink

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development in the company's history" (Demott et. al 54). The change back to the old
Coke was known as the Second Coming. Roberto Goizueta said, "Today, we have two
messages to deliver to the American consumer, first, to those of you who are drinking
Coca-Cola with its great new taste, our thanks...But there is a second group of consumers
to whom we want to speak to today and our message to this group is simple: We have
heard you" (Oliver 178). On July 10, 1985, eighty-seven days after the new Coke was
introduced, the old Coke was brought back in addition to the new one. This was greatly
due to dropping market share and consumer protest. The market share fell from a high of
15 percent to a low of 1.4 percent (Miller 38). Roberto Goizueta and Donald Keough took
full blame for this failed product launch. Don Keough, Coca-Cola president, said in
response to the comeback, "The truth is we are not dumb and we are not that smart" (New
bottle 18). Roberto Goizueta's response when the change about, "We have heard you"
(Moore 8). This was said to be a classic marketing retreat.

Coca-Cola executives admitted that they had goofed by taking the old Coke off the
market. One old Coke loyalist said, "The company had spoiled the taste of its ninety nine
year old soft drink and betrayed a national trust" (Moore 8). Ike Herbert, a Coke marketer
said, "You would have thought we had invented a cure for cancer" (Pendergrast 366).
The Coca- Cola company's eight hundred number received eighteen thousand calls of
gratitude. One caller said they felt like a lost friend had returned home. The comeback of
old Coke drove stock prices to the highest level in twelve years. This was said to be the
only way to regain the lead on the cola wars (Classic comeback of an old champ 12). In
1979, fifteen hundred employees moved to the new corporate headquarters in Atlanta
located on North Avenue. The new corporate headquarters came to be known as "The
Tower."

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During the time when the research for the new formula was taking place, it was known as
"The Bunker" (Oliver 53). The known ingredients in present day Coca-Cola are water.
caffeine, phosphoric acid, vanilla, various oils and essences and extracts of the coca leaf
and the kola nut. The one in four hundred part of cocaine was removed from Coca-Cola
in 1903(Demott 54). Five years after the infamous Coke fiasco, the Coca-Cola company
tried to bring back the reformulated Coke.

The effort to phase in Coke II into the soda market was quite unsuccessful (Miller 38).
During the Woodruff era, Mr. Woodruff made a promise to the armed forces of the
United States to supply Coca-Cola to every serviceperson. He said that costs and location
did not matter, he supplied 5 billion bottles to the service. In the mid-1970's, more than
half Coca-Cola sold was outside of the U.S. Coca-Cola products outsell closest
competitor by more than two to one. One in every two colas and one in every three soft
drinks is a Coca-Cola product (Facts, Figures, and Features 16). The best known
trademark in the world is sold in about one hundred and forty countries to 5.8 billion
people in eighty different languages. This is why Coca-Cola is the largest soft drink
company in the world. Coca-Cola is worth more than 58 billion dollars on the stock
market (Coca-Cola, The Coca-Cola Company 232). For more than 65 years, Coca-Cola
has been a sponsor of the Olympics. The 1996 Summer Olympics will be held in Atlanta,
Georgia, the home of Coca-Cola. One great earmark that the Coca-Cola company has is
helping the people of Atlanta. They accomplish this through scholarships, hotlines,
donations and contributions, etc. Another large accomplishment that the Coca-Cola has,
is being the first company to make and use recycled plastic bottles. One way to see all of
the achievements of the Coca- Cola company is to visit the World of Coke in Atlanta. It
houses a collection of memorabilia, samples of the products, exhibits, and many other
exciting items (Facts, Figures, and Features Multiple pages). All of what has been said is
the basis of what Coca-Cola was built on. Without societies help, Coca-Cola could not
have become over a 50 billion dollar business. Keep on consuming the world's favorite
soft drink, Coca-Cola.

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HINDUSTAN COCA-COLA BEVERAGE PVT LTD
Coca-Cola, the corporation nourishing the global community with the world’s largest
selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus,
giving a new thumbs up to the Indian soft drink market. In the same year, the Company
took over ownership of the nation’s top soft-drink brand and bottling network. It’s no
wonder our brands have assumed an iconic status in the minds of the world’s consumers.

A HEALTHY GROWTH TO THE INDIAN ECONOMY


Ever since, Coca-Cola India has made significant investments to build and continually
consolidate its business in the country, including new production facilities, waste water
treatment plants, distribution systems, and marketing channels.
Coca-Cola India is among the country’s top international investors, having invested more
than US$ 1 billion in India in the first decade, and further pledged another US$100
million in 2003 for its operations.

A PURE COMMITMENT TO THE INDIAN ECONOMY


The Company has shaken up the Indian carbonated drinks market greatly, giving
consumers the pleasure of world-class drinks to fill up their hydration, refreshment, and
nutrition needs. It has also been instrumental in giving an exponential growth to the
country’s job listings.

CREATING ENORMOUS JOB OPPORTUNITIES


With virtually all the goods and services required to produce and market Coca-Cola being
made in India, the business system of the Company directly employs approximately
6,000 people, and indirectly creates employment for more than 125,000 people in related
industries through its vast procurement, supply, and distribution system.
The Indian operations comprises of 50 bottling operations, 25 owned by the Company,
with another 25 being owned by franchisees. That apart, a network of 21 contract packers
manufacture a range of products for the Company.

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On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the
narrow alleyways of Indian cities – constantly keep our brands available in every nook
and corner of the country’s remotest areas. These are only some of the facts that speak
about our commitment to the growth of the Indian Economy.

MISSION,VISION & VALUES

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 "Roadmap" for winning together with
our bottling partners.

OUR MISSION

Our Roadmap 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.

• To refresh the world...

• To inspire moments of optimism and happiness...

• To create value and make a difference.

OUR VISION

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

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

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

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

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

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

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 compass for our actions and describe how we behave in the world.

 Leadership: The courage to shape a better future

 Collaboration: Leverage collective genius

 Integrity: Be real

 Accountability: If it is to be, it's up to me

 Passion: Committed in heart and mind

 Diversity: As inclusive as our brands

 Quality: What we do, we do well

FOCUS ON THE MARKET

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 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

WORK SMART

 Act with urgency

 Remain responsive to change

 Have the courage to change course when needed

 Remain constructively discontent

 Work efficiently

ACT LIKE OWNERS

 Be accountable 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, passion, optimism and fun

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BRANDS OF COCA COLA:

1) COCA COLA

TAG LINE:
Open Happiness

BRAND AMBASSADORS:

 Aamir Khan

 Gautam Gambhir

 Vijay

 hrithik, Ganesh

 Imran Khan

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
internationally. The Coca-Cola Company claims that the beverage is sold in more than
200 countries. It is produced by The Coca-Cola Company and is often referred to simply
as Coke. It was invented in the late 19th century by John Pemberton.

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2) THUMS UP

TAG LINE:
Taste The Thunder

BRAND AMBASSADORS:

 Akshay Kumar

 Mahesh Babu

 Chiranjeevi

Thums Up is a carbonated soft drink (cola) popular in India, where its bold, red thumbs
up logo is common. It is similar in flavour to other colas but has a unique taste
reminiscent of betel nut. It is introduced in the year1977.

3) SPRITE

TAG LINE: Seedhi Baat, No Bakwas, Clear Ha

BRAND AMBASSADORS:

 Shruh Khan

 Ganguly

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Coco cola india offers sprite. This soft drink was launched in 1999 and today worldwide
it ranks as the no.4 soft drink and sold in more that 190 counties. It has grown to be one
of the fastest growing soft drink, leading the clear lime category.
This soft drink is perceived as the youth icon and with a strong appeal with the youth it
has stood for a straightforward and honest attitude. Its clear crisp refreshing taste
encourages everyone to trust their instinct and influence them to be true.

4) FANTA ORANGE

TAG LINE:
Di Khao Apne Asil Rang

BRAND AMBASSADORS: Genilia

Fanta is a global brand of fruit-flavoured soft drink from the Coca-Cola Company. There
are over 90 flavours worldwide; however, most of them are only available by region in
some countries.

5) FANTA APPLE

TAG LINE:
Fanta ka signal loud, Bunking is allowed

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BRAND AMBASSADORS: Genilia

Fanta Apple will be launched in a phased manner starting with the southern states of
Andhra Pradesh and Tamil Nadu followed by a national roll-out over the next two
months. Fanta Apple would be retailed across 35,000 outlets in the two states in the
launch phase.The new variant will be available in 200 ml and 300 ml returnable glass
bottles (RGB) priced at Rs 8 and Rs 10 respectively.

6) LIMCA

TAG LINE:
Fresh Ho Jao

BRAND AMBASSADORS:

 Hrishitta Bhatt

Limca is a lemon and lime flavoured carbonated soft drink made in India and certain
parts of the U.S. Limca is generally sold in glass bottles within India, which are returned
to the store or restaurant after the contents have been drunk. The bottles are sent back to
the manufacturer, washed and reused, because they are more expensive than the drink
itself.It is introduced in the year 1977.

7) MINUTE MAID PULPY ORANGE

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TAG LINE:

Refreshingly Orange, Surprisingly Pulpy

Minute Maid is a product line of beverages, usually associated with lemonade or orange
juice, but now extends to soft drinks of many kinds, including Hi-C. Minute Maid is sold
under Cappy brand in Central Europe and under Fruitopia in Germany.Minute Maid was
the first company to market orange juice concentrate, allowing it to be distributed
throughout the United States and served year-round. The Minute Maid company is now
owned by The Coca-Cola Company, and is the world's largest marketer of fruit juices and
drinks.

8) MINUTE MAID NIMBU FRESH

TAG LINE:
'Bilkul Ghar Jaisa'

Minute Maid Nimbu Fresh’ a soft-drink introduced by Hindustan Coca Cola Beverages
(Coca-Cola India) is replaced the imported lemon juice drink with a local variety. It is
now with two packs - a 400ml bottle priced at Rs.15 and a one-litre bottle at Rs.45.

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9) MAAZA

TAG LINE:
Maaza Lao Aam ki Pyaas Bujhao

Maaza was launched in 1976 in India. The Union Beverages Factory, based in the United
Arab Emirates, began selling Maaza as a franchisee in the Middle East and Africa in
1976. By 1995, it had acquired rights to the Maaza brand in these countries through
Maaza International. In India , Maaza was acquired by Coca-Cola India in 1993 from
Parle-Bisleri along with other brands such as Limca, Citra, Thums Up and Gold Spot.

10) KINLEY WATER

TAG LINE: Vishwas Karo

Kinley is a brand of still or carbonated water owned by The Coca-Cola Company and
sold in many Central European countries, Pakistan and India. Its carbonated forms are
used for mixers, and also available in a variety of fruit flavors.

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11) DIET COKE

TAG LINE:
Just for the taste of it

Diet Coke (also known as Diet Coca-Cola, Coca-Cola light or Coke Light) is a sugar-free
soft drink produced and distributed by The Coca-Cola Company. It was introduced in the
United States on Independence Day in 1982 as the first new brand since 1886 to use the
Coca-Cola trademark. The product quickly overtook Tab in sales.

LOGOS OF COKE BRANDS


1) COCA COLA 2) THUMS UP

3) FANTA ORANGE 4) FANTA APPLE

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5) SPRITE 6) LIMCA

7) MINUTE MAID NIMBU FRESH 8) DIET COKE

9) MINUTE MAID NIMBU FRESH 10) KINELY WATER

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LIST OF DIFFERENT PLANT LOCATED IN INDIA

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Bangalore

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Ghaziabad

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Goa

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Hyderabad

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Jaipur

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Vijayawada

 Hindustan Coca-Cola Beverages Pvt. Ltd. at Visakhapatnam

DIFFERENT PACAKAGE AVABILITY:

PRODUCT GLASS PET CAN FOUNTAIN

Coca cola 200ml,300ml 500ml ,1.5l, 2l, 330ml various sizes


500ml , 2.25l,
1000ml 500ml+100ml

Thums up 200ml,300ml 500ml, 1.5l,2l , 330ml various sizes


500ml 1000ml 2.25l
500ml+100ml

Sprite 200ml ,300ml 500ml, 1.5l ,2l , 330ml various sizes


2.25l,1.25l ,
500ml+100ml

Fanta 200ml ,300ml 500ml ,1.5l ,2l, 330ml various sizes


2.25l,
500ml+100ml

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Maaza 200ml , 250ml 1.2l,600ml,250m - -
l

Limca 200ml ,300ml 500ml,1.25l,1.5l, 330ml various sizes


2l,2.25l,
500ml+100ml
Mmpo - 400ml ,1l ,1.25l - -

SEGMENTATION OF MARKET

A market segment consists of a group of customers who share a similar set of needs and
wants. Rather than creating the segment the marketer’s task is to identify them and decide
which one to target. Leading soft drink companies Coca-Cola and Pepsi follow the
similar segmentation strategy for target marketing.

MASS MARKETING

However in some of its popular product both the companies follow the mass marketing
strategy. In this type of segmentation, companies target the whole market and not any
particular segment of the population.

TARGETED MARKETING

Although the targeted group of the company is the whole population, they want to earn
more revenue from a segment than their other revenue generator sources. For this, they
recognize following bases for segmentation

 GEOGRAPHICAL
 REGION

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The company treat hot countries such as Asia, Middle East and African differently in
comparison to cold countries. As in tropical countries, consumption of soft drinks is 70%
in summer and 30% in winter season while in EUROPEAN countries its consumption is
almost uniform. So soft drink companies prefer different marketing strategies in Asian
and European countries. In countries like India and Pakistan, the company invest huge
resources in the season of summers, and their target area is domestic users, restaurants,
school and college canteens and even rural chaupals. While in winter season their target
is mainly party users and high-income group consumers.
RURAL VS. URBAN MARKET

Coca-Cola Company is one of the first global majors to have spotted the potential spin
offs from the country’s rural market. Population of Rural sector is more conscious more
about the price whereas Population of Urban sector is more conscious about the quality
and brand name of the product. so Coca cola in Year 2002 bring the 200 ml bottle at Rs.5
specifically targeted at the rural sector so that soft drink can take place of the local drink
like lemon, sugarcane juice and Tea etc.The company Coca-Cola have adopted different
marketing strategy for rural and urban areas.
DEMOGRAPHIC SEGMENTATION

1) AGE
India is considered to be a young country i.e. average age of Indian population is less 38
years. Thus targeting young generation can be a beneficial marketing strategy for soft
drink companies. In fact this is the case, all the major brands like Pepsi, coca cola, and
thumps up, mainly target younger generation in India. In Europe, as average population is
older than Asian countries, Coca cola targeted the older generation of the population.
2) GENDER
Gender based segmentation is very important. As taste of male and female is different.
Let’s take the example of coca cola, thumps up is promoted as masculine soft drinks
while coca cola and Fanta are having light taste and mainly targeted for loving
birdsladies, and children. Same example is available in Pepsi, mirinda’ orange flavor is
popular among ladies, girls, and children.

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Theoretical
frame work

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PROMOTIONAL STRATEGIES

Promotion is a part of 4Ps of marketing business strategies, which is widely used by the
companies to inform, influence, or persuade existing and potential customers about the
company’s products or services. Marketing itself combines a broad range of business
activities, where marketing mixes help companies to achieve its objectives and total
customer satisfaction. Careful and thoughtful development of promotional strategies
plays a significant role for business enterprises to maintain its leadership position in
today’s competitive marketplace. Unique promotional strategies make companies
different and better from those of competitors, and so, attract more new customers. It is
important to understand that these strategies need to be effective to ensure the success of
the campaign. Promotional strategies turn into campaigns whose objective is to let the
market know that the company is prepared to serve it with quality services and quality
products, while reminding about its existence through placement of the right message in
the right medium and using the right strategy whether it is brand awareness, new product
or service introduction, attractive offering or another event where existing customers and
prospects can participate.The most expensive and the last component of the promotion
mix is personal selling, which involves face-to-face sales presentations between
middlemen, existing and potential customers. The ability to sell products and services is
important to all companies. Frank Pacetta, hero of Xerox, developed own style for sales
that “boils down to three simple steps: identify the customer, make sure your product fits
the customer’s requirements and ask for the sale.” (Fierman, The Death and Rebirth of
the Salesman) It is well known that a salesperson is the most productive when he or she
works directly with the client, handles objections, and successfully builds lasting
relationships with its customers. For this reason, the sales person is also known as
“relationship manager” and “problem solver.” Alyssa Dver, the author of “CRM – May
the Sales Force be with You” article says that “salespeople are key to having an effective
CRM process and will be the biggest winners when it works.” The goal of salespeople is
being able to meet and exceed both customer needs and company objectives by means of

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“developing new business, selling, serving, information gathering, and protecting the
territory against inroads from competition.” (Sandhusen, p. 467) Salespeople help
customers make good buying decisions by meeting their needs and matching them with
the products or services represented. The role of a salesperson is to make sales. Although,
the salespeople must not forget that they are a face of the company which they represent,
so that the way the representative behaves strongly affects the image and reputation of
that company. The first impression is always important. Nowadays, the perspective
salespeople make strategy decisions about integration of marketing and promotion mix
elements into their daily presentations to fit the needs of their customers and in turn,
provide feedback.
Adverting is only one element of the promotion mix, but it often considered prominent
in the overall marketing mix design. Its high visibility and pervasivenessmade it as an
important social and encomia topic in Indian society. Promotion may be defined as “the
co-ordination of all seller initiated efforts to set up channels of information and
persuasion to facilitate the scale of a good or service.” Promotion is most often intended
to be a supporting component in a marketing mix. Promotion decision must be
integrated and co-ordinated with the rest of the marketing mix, particularly
product/brand decisions, so that it may effectively support an entire marketing mix
strategy. The promotion mix consists
of basic elements. They are:-

1. Personal Selling
2. Sales Promotion
3. Public Relations (PR)
4. Publicity
5. Advertising

THE PROMOTIONS MIX

Personal Selling

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Personal Selling is an effective way to manage personal customer relationships. The sales
person acts on behalf of the organization. They tend to be well trained in the approaches
and techniques of personal selling. However sales people are very expensive and should
only be used where there is a genuine return on investment. For example salesmen are
often used to sell cars or home improvements where the margin is high.

Sales Promotion

For example the BOGOF promotion, or Buy One Get One Free. Others include coupons,
money-off promotions, competitions, free accessories (such as free blades with a new
razor), free installation, and so on. Each sales promotion should be carefully compared
with the next best alternative.

Public Relations (PR)

Public Relations are defined as 'the deliberate, planned and sustained effort to establish
and maintain mutual understanding between an organization and its publics'. It is
relatively cheap, but certainly not cheap. Successful strategies tend to be long-term and
plan for all eventualities.

Trade Fairs and Exhibitions

Such approaches are very good for making new contacts and renewing old ones.
Companies will seldom sell much at such events. The purpose is to increase awareness
and to encourage trial. They offer the opportunity for companies to meet with both the
trade and the consumer.

Advertising
Advertising is a 'paid for' communication. It is used to develop attitudes, create
awareness, and transmit information in order to gain a response from the target market.
There are many advertising 'media' such as newspapers (local, national, free, trade),

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magazines and journals, television (local, national, terrestrial, satellite) cinema, outdoor
advertising (such as posters, bus sides).

Sponsorship
Sponsorship is where an organization pays to be associated with a particular event, cause
or image. Companies will sponsor sports events such as the Olympics or Formula One.
The attributes of the event are then associated with the sponsoring organization.

SOME OF THE PROMOTIONAL ACTIVITIES OF COKE

Advertising has played an important role in the success of products since first newspaper
add in 1886, which read “Coca-Cola Delicious! Refreshing! Exhilarating! Invigorating!”
The company uses adver4tising to trigger desire as often and in as many ways as
possible. Through the consumers survey it has been proved that the T.V. commercials
and sinages affect the consumer buying behavior by approximately 70%. May be only
Coco cola. is investing huge finances in the T.V. commercials and other singes, big
names of Indian film industries and sports hero’s are being proposed to become the brand
promoters and brand ambassadors. Amir Khan, Akshay Kumar, Hritik Roshan, Riya Sen
and more are being offered huge amount for carrying out the promotions.

1) Posters

2) Glow Sign boards

3) Date calendars

4) Cinema hall tickets

5) Radio commercial

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ADVERTISING HAS PLAYED AN IMPORTANT ROLE IN THE
SUCCESS OF COKE
Advertising is a non promotion of goods & services by sponsor who can identified and who has paid
for his communication. Their purpose of advertisement is to sell something goods or services,idea
,person or place.

BRAND AMBASSDORS & TV COMMERCIALS

Bollywood star Imran Khan for Coke Genelia D’souza for Fanta

• Shah Rukh Khan for sprite Mahesh Babu for Thumsup

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Hrishitta Bhatt for limca Akshay kumar for Thums up

SALES PROMOTION
PUSH STRATEGY:-

Coca cola is using Push strategy in which they use its sales force and trade promotion
money to induce intermediaries to carry, promote and sell the product to end users i.e.
consumers.
For example-as coca cola is giving free pet bottles and other trade schemes to
distributors, agency owners and retailers.

PULL STRATEGY:-

Coca-cola is also using Pull strategy in which they are using advertising and promotion to
persuade consumers to ask intermediaries for the company brand product by this way
coca cola inducing customer to order it from shopkeeper.
For example-Coca cola is using display racks, tier racks, standees, mobile hangers.

CURRENT PROMOTIONAL STRATEGIES OF COCA-COLA


At present two promos are running in the market, they are as listed below,

1) YUDDHAM SIDDHAM
2) LIFT KARA DE

1) YUDDHAM SIDDHAM
It consists of 3 categories namely A, B & C. Deposit into any one category
and get Rs15/- value coupons

CATEGORY GOD NO OF COUPONS COUPON VALUE


A 10 300 15
B 5 200 15
C 3 100 15

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2) LIFT KARA DE
It consists of 2 categories namely A & B. Deposit into any one category and
get 2 verities of coupons.

CATEGORY INITIAL TARGET GIFT COUPONVALUE


PURCHASE COUPONS
CSD JUICE CSD JUICE CSD JUICE CSD JUICE
A 2 1 40 20 40 20 10 20
B 1 1 20 10 20 10 10 10

SOME MORE PROMOTIONAL STRATEGIES OF COCA COLA

Promotional strategy during IPL matches

Coca cola Lucky Coupon Dinner with kings XI Punjab

Sprite “kholega toh bolega” IPL Season 2

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Combining this key insight with the passion of T20 cricket, company had launched a
special edition ‘Sprite Kolkata Knight Riders’ bottle with insignia of key players.
Complimenting the innovation, Sprite was also rolling out a special ‘Kholega Toh
Milega’ digital initiative in association with KKR and Nokia.In the offer consumers just
need to drink Sprite and look out for a unique 9 digit code under the crown and SMS the
code. Lucky consumers get once-in-a-lifetime opportunity to meet Shahrukh Khan and
members of the KKR team. In addition, consumers also get a chance to win a Nokia
mobile phone every hour. To create awareness about ‘Kholega Toh Milega’ digital
initiative, the company had launched a mass media campaign featuring Shahrukh Khan,
owner KKR, to be telecast on all the leading TV channels across India.

PROMOTION DURING OFF SEASON


LIMCA LAUNCHES ‘LAPTOP KI BARISH’ CONSUMER INITIATIVE

Coca-Cola India has announced the launch of its innovative ‘Limca ‘Laptop Ki Barish’
consumer initiative nationally. As part of this unique initiative a computer generated
lucky draw would provide consumers a chance to win “HP Mini Laptop” every hour for

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the next 45 days. The initiative is applicable to 200ml, 300ml returnable glass bottles
(RGB) and also on 500 ml, 600 ml 1.25, 1.5, 2 & 2.25 liters PET bottles of Limca. As
part of the under the crown initiative consumers just need to SMS “LIMCA” followed by
a 9 digit unique code to 58558 from their GSM / CDMA mobile phones.

SALES PROMOTION ACTIVITIES

Coca-Cola Cricket
Cricket the most sought after; watched & played game in india .the game of cricket has
been owned by various brands in the industry for the promotion of their products over a
period of time. It has ranged from tobacco to lubricants to communication companies to
banks to airlines & lately to the beverage industry. The competition has become tougher
& tougher as the time has progressed.Coca-Cola signed a sponsorship agreement with
IPL team of kings 11 Punjab .Coca-Cola realizing the fact that cricket is a very strong
element by which it can reach it consumers & masses invested in the opportunity and
launched a massive campaign on mass media showing all these cricket stars endorsing &
complimenting Coca-Cola brand. The Coca-Cola Company developed three TV
commercials & four testimonial ads with the player & ran them on the national net work
during various cricket matches.
.
Coca-Cola Food Mela
With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the
people of delhi, to a festive food festival comprising of 50 restaurants, spread out all over
the bustling city’s map. The promotion saw the avid families & friends enjoying the
delicacies at the restaurants; all resiliently upholding the Coca-Cola identity.

Coca-Cola GO-RED
Quenching the thirst of motorist, pedestrians & passerby’s during Delhi hottest summer
season, Coca-Cola’s “GO-RED” teams went out into the cities main quadrants to “serve
& refresh” on the spot with ice-cold Coca-Colas at discounted prices backed by a heavy

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FM announcement campaign the “GO-RED” stall, served well to promote the Coca-Cola
industry.

Coca-Cola Pet Promotion


In 2008, Coca-Cola launched 1.5 liter Pet contour bottle Targeting house wives & family
home, Coca-Cola’s 1.5 liter Pet bottle, took the limelight & gained momentum with a
campaign promoting the unique packaging and its numerous consumer benefits .A treat
for the family, Coca-Cola’s PET was offered through a “price-off” promotion

Coca-Cola & Mc Donald’s


Coca-Cola & key account of MC Donald’s launched the “we go together” joint
promotion to reinstate amongst consumers a real sense of the affinity that, both shares
globally. The promotion kicked off with pos material (Danglers, Bunting etc) displayed at
all MC Donald’s restaurants along with a special offer for coke & fries.

Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that shelves
in that style which show their product more clear and more attractive for the
consumers.

Eye Catching Position


Salesman of the coca cola company positions their freezers and their products in eye-
catching positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion
Company also do sponsorships with different college and school’s cafes and sponsors
their sports events and other extra curriculum activities for getting market share.

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PROMOTION THROUGH RESTAURANTS AND CINEMA
HALL HOLDINGS

Coca-cola is tying up with different chains of restaurants and fast food centers to promote
the Coca-cola and its other brands like Limca, Sprite, Maaza etc. these restaurants are
authorized to keep and use the merchandising assets of Pepsi. Usually these kinds of
restaurants and fast food chains are in contract with the Pepsi Co., so that they cannot
promote any other brand.

MERCHANDISING ASSETS

Coca-Cola also try to promote their brands by providing their retailers and dealers some
display items. Some of such items are as follows:
1. Fridges
2. Coca-Cola/Maaza stands
3. Display bottles
4. Posters
Coca-Cola provide the above things to the retailers to use them in promoting companies
brands and products, and provide refrigerators to the retailers in the hope that these
retailers only use these assets in promoting the Coca-Cola’s products and they will chill
the Coca-Cola’s products so that its products will always be available to the end
consumers. But it is not true in most of the cases. Retailers usually use the merchandising
asset of one company in such a way that it benefits another company. Sometime they do
it unknowingly, sometimes they do it knowingly and sometimes because of the
deficiencies of the company

AVAILABILTY

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Availability is done according the type of outlet. There are four type of outlet mentioned

below. According to this market developer has to ensure the availability of the products

in the particular outlet.

ACTIVATION

Activation is important because it helps to boost the sales of the company. it is done

through the Glow sign, Shelf display, flanges. Combo boards, Table tops .This boards

usually gives to the E&D outlets .It helps to attract the customers. Rack with header is

provided to the grocery stores.

1. WARM DISPLAY RACK


2. SHELF DISPLAY

SHELF DISPLAY DISPLAY OF RACK VISI COOLER

VISI COOLER DISPLAY

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Under Coke market developer has to insure that shopkeeper must display all products.
Display may be in the form of Shelf Display, Table Top Display etc. All products must
be displayed in brand order i.e. Thumsup, Coke, Sprite, Limca, Fanta, Maaza,
MinuteMaid Pulpy Orange, Kinley (mineral water & Soda water).

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Interpretation

& analysis

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Table-1: TYPE OF OUTLETS VISITED DURING SURVEY

EXCLUSIVE OUTLETS SHARED OUTLETS


79% 21%

OUTLETS VISITED

SHARED
SHARED , OUTLETS
TYPES

OUTLETS
21%

EXCLUSIVE
OUTLETS
EXCLUSIVE 79%
OUTLETS ,

0 20 40 60 80 100

INTERPRETATION:
From the above graph it is clear that among 18000 outlets, 79% of outlets are dealing
with coke products exclusively and 21% of outlets are dealing with pepsi products, that is
the maximum outlets are being deal and showing interest with coke brands.

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Table-2: SINCE HOW MANY YEARS YOU ARE DEALING WITH
COKE?

YEARS < 1 YEAR 1-2 YEARS 2-3 YEARS 4YEARS &


ABOVE
NO OF 8 13 22 57
RETAILERS(%)

NO.OF YEARS,OUTLETS DEALING


WITH COKE

4&
ABOVE 57
2-3
YEARS 21
NO OF
1-2 RETAILERS
YEARS 13

<1 YEAR 8

0 20 40 60

INTERPRETATION:
From the above graph it is clear that among 18000 outlets, 57% of outlets are dealing
with coke products from more than 4years and 21% of outlets are dealing from 2-3 years,
13% outlets are dealing from 1-2 years and 8% outlets started dealing with coke recently
with this we can say that the customers are showing interest to work with coke.

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Table-3: FACTORS CONSIDERED FOR ADOPTING COKE
PRODUCTS?

FACTORS WIDE OFFERS QUALITY CUSTOMER


RANGE OF SERVICE
PRODUCTS
NO OF 29 21 27 23
RESPONDERS
IN
PERCENTAGE

FACTORS CONSIDERED FOR


ADOPTINGCOKE PRODUCTS

CUSTOMER SERVICE 23
FACTORS

QUALITY 27

OFFERS 21

WIDE RANGE OF
PRODUCTS 29

0 10 20 30 40

INTERPRETATION:
From the above graph it is clear that among , 23% adopted the products because of the
best customer service, 27% adopted because of quality, 21% adopted because of offers,
where as 29% adopted because of the wide range of products. with this we can say that
the customers perception are different in adopting the products, where as coke is also
satisfying each area that the customer expecting.

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Table-4: WHAT SORT OF PROMOTIONAL TOOL WILL AFFECT
THE CUSTOMERS YOU THINK?

TOOLS TV ADS PAPER HOARDINGS SALES


ADS & PROMOTINS
BOARDINGS (OFFERS,COUPNS..)
NO OF 41 7 23 29
RESPONSES
IN
PERCENTAGE

EFFECTOFPROMOTIONALTOOLS

SALES
PROMOTINS 29
TOOLS

HOARDINGS&
BOAR DINGS 23

PAPERADS 7

TVADS 41

0 10 20 30 40 50

INTERPRETATION:
The above graph clearly represents that among 100 customers, 29% customers are
believing that the sales promotion effect the customers to buy the products,23% believe
that hoardings and boarding attract the customers,7% believe that paper ads where as
41% believe that the customer attract mostly because of the TV ads..

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Table-5: WHAT INFLUENCES A CUSTOMER TO VISIT YOUR
OUTLET?

FACTORS DISPLAYS OFFERS RECEIVING RELATIONSHIP


NO OF 14 21 29 36
RESPONSES
IN
PERCENTAGE

FACTORS INFLUENCINGCUSTOMER
TOVISIT YOUROUTLET

RELATIONSHIP 36
FACTORS

RECIEVING 29

OFFERS 21

DISPLAYS 14

0 10 20 30 40

INTERPRETATION:
The above graph clearly represents that among 100% customers, 36% outlets are
believing that relationship is the factor that influences the customers to visit the outlet
again,29% believe that receiving,21% believes that offers and 14% believes that displays
are attracting the customers.

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Table-6: SCHEMES & OFFERS CAN HELP THE OUTLET IN
RETAINING CUSTOMERS FOR A LONG?

Z STRONGLY AGREE DISAGREE STRONGLY


AGREE DISAGREE
RESPONSES 29% 33% 27% 11%
OF
CUSTOMERS

SCHEMES&O FFERSCANHELPTHE
OUTLETTORETAINTHE
CUSTOMERS

STRONGLYDISAGREE 11

DISAGREE 27

AGREE 33

STRONGLYAGREE 29

0 10 20 30 40

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INTERPRETATION:
The above graph clearly represents that among 100% customers, 11% outlets are strongly
disagree that schemes & offers help the outlet in retaining the customers,27% outlets
even disagree, where as 33% outlets agree and 29% outlets are strongly agree.

Table-7: OPINION ABOUT THE PROMOTIONAL ACTIVITIES OF


COKE

FACTORS GOOD AVERAGE BAD


RESPONSES
OF 89% 11% 0
CUSTOMERS

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OPINONABOUTTHEPROMOTIONAL
ACTIVITESOFCOKE

bad 0

average 11

Good 89

0 20 40 60 80 100

INTERPRETATION:
The above graph clearly represents that among 1800 customers, 11% outlets are saying
that promotional activities of coke are good but remaining 89% outlets are saying that
promotional activities of coke are excellent.

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Table-8: WHAT DO YOU FEEL ABOUT THE CUSTOMER EMPTY
CELL & GLASS DEPOSIT PROMOTION

FACTORS EXCELLENT GOOD AVERAGE BAD


RESPONSES
OF 39% 43% 18% 2%
CUSTOMERS

bad 2

average 11

Good 48

Excellent 39

0 10 20 30 40 50 60

INTERPRETATION:
The above graph clearly represents that among 100% customers, 2% outlets are saying
that customer empty cell & glass deposit promotion is bad, 11% outlets are saying
average,48% are saying that good and remaining 39 are feeling excellent.

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FINDINGS OF THE STUDY

 Majority of the customers are being satisfied with the promotional schemes
offered by the HINDUSTAN COCA-COLA BEVERAGE PVT LTD.

 Still some more customers are showing interest to work with coca-cola.

 Most of the customers are giving preference for quality as well as customer
service , coke is succeed in both the areas .

 Coca cola products are having maximum sales when compare to its competitors.

 Maximum number of customers are suggesting regarding the more supply during
the season time

 One of the reason for the success of HINDUSTAN COCA-COLA BEVERAGE


PVT LTD is obviously its unique promotional activities .

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SUMMARY

Inspire of all the above inadequacies, which are highlighted in the suggestions the

HINDUSTAN COCA-COLA BEVERAGE PVT LTD has a good brand image

and brand loyalty among the customers. All the employees are target-oriented in

their respective fields. They created a congenial working environment and

working with co-ordination to achieve the ultimate targets of the HINDUSTAN

COCA-COLA BEVERAGE PVT LTD.

The organization should motivate its employees to the almost possible extent to

achieve the goals and objectives. It has to develop its promotional activities for

outmost development and to achieve the competitive advantage. New methods of

advertising i.e. using the media of advertising more efficiently and innovatively

should be done. Customers should be made aware of the product mix of

HINDUSTAN COCA-COLA BEVERAGE PVT LTD and other products,

which they are selling.

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SUGGESTIONS

 Advertisements should target the entire family, mainly because it has been

observed that irrespective of age and gender, more than 75% of the people

have liked the product and look forward to buy it again. Advertisements

should highlight the main features of the product .

 The company should focus much on the distribution because the distribution

channel makes the sale of the product stronger.

 The company is spending lot of money on advertising and promotion but the

promotion should be done in a unique way.

 The company should take the strict actions towards those retailers which are

putting the local brands in the refrigerators provided by the company to them.

 Company should even provide umbrella, chairs etc. to the places like college

canteen, tea stalls etc. which will motivate them keep more of Coca-cola.

 For the launch of the product and for the success of the product what should

be done first is to target the Retailer for the simple reason he is the person who

will give display, promotion & add to the selling of the product.

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CONCLUSION

No doubt, Coca-Cola is one of the companies having the best promotional

strategies, infact it is the one of the leaders in sponsoring the most important,

thrilling events. E.g. Cricket matches, concert and many other social

occasions. Even, Coca-Cola has always had a close relationship with its

customers and supplier. Its entertaining and colorful advertisements are

being rocking the media. Indian stars, sportsmen, actors even the actresses

are playing a very vital role in making Coca-Cola such a popular beverage.

I would like to appreciate the employees for their dedication to work with

the company and Continuous supervision on market and employees

definitely make the coca cola not as a part of fortune companies, but in the

first position of fortune companies.

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BIBLIOGRAPHY

SITES VISITED
• www.google.com
• www.cocacola.com
• www.Wikipedia.com
• www.cocacolaindia.com
• www.hindusthan coca-cola.com.

BOOKS REFERRED

 Internal records of the HINDUSTAN COCA-COLA BEVERAGE PVT LTD

 Marketing management: Philip Kottler

 Marketing management: Ramaswamy & Ramakumari

 Principles and application: D.D. Sharma

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