EXECUTIVE SUMMARY

MARKET SHARE ANALYSIS

EXECUTIVE SUMMARY

A study of inventory management at COCA-COLA INDIA LIMITED is undertaken in order to know the MARKET SHARE ANALYSIS and position of the company in the market and to know the strengths and weaknesses and to assess the profitability of the company.

Introduction

Introduction gives the detailed information about the company and the background of the company.

Statement of the problem

As per the survey conducted we can conclude that the market share of Coca-Cola is approximately 90%in SIRUGUPPAThe main objectives of the study are:-

To study the historical background of COCA-COLA INDIA LIMITED.

To study the competitive environment.

To determine critical evaluation of the market.

To equip myself better in the area of market share analysis.Scope of the study

At COCA-COLA INDIA LIMITED plant this study was conducted to find the facts to increase the market share.

Research methodology

Research methodology gives the information or the type of research, the survey, the procedure and the techniques of data gathering sample size and technique used, it also shows the sample description and profile, scope and limitations of the study

Summary of findings

1. We can see that most of sales contribution is from glass bottles rather than pet bottles and customers are becoming eco friendly as they know that plastic bottles are harmful to them.

2. It is seen that Sprite almost contributed to 50% of the sales of all other Coca-Cola products like Thumbs up, Coca-Cola, Fanta and Maaza.

3. It is seen that Newspapers and T.V. contribute to maximum awareness in the minds of customers.

Conclusion and suggestions

1. Extra credit facilities to their customers who pay their bills on a regular basis.

2. No wonder Coca-Cola is making more sales than Pepsi but Pepsi is making profits from their food products like Lays and other eatables Therefore, Coca-Cola should also go into eatables in order to maximize their profits.

GENERAL INTRODUCTION

The soft-drink battleground has now turned towards new overseas markets. While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi. However, Eastern Europe, Mexico, China, Saudi Arabia, and India have become the new "hot spots." Both Coca-Cola and Pepsi are forming joint bottling ventures in these nations and in other areas where they see growth potential.

International marketing can be very complex. Many issues have to be resolved before a company can even consider entering uncharted foreign waters. This becomes very evident as one begins to study the international cola wars. The domestic cola war between Coca-Cola and Pepsi is still raging. However, the two soft-drink giants also recognize opportunities for growth in both Coca-Cola, which sold 10 billion cases of soft-drinks in 1992, and Pepsi now find themselves asking, "Where will sales of the next 10 billion cases come from?" The answer lies in the developing world, where income levels and appetites for western products are at an all time high.

Often, the company that gets into a foreign market first usually dominates that country's market. Coca-Cola patriarch Robert Woodruff realized these 50 years ago and unleashed a brilliant ploy to make Coca-Cola the early bird in many of the major foreign markets. At the height of World War II, Woodruff proclaimed that wherever American boys were fighting, they'd be able to get a Coca-Cola. By the time Pepsi tried to make its first international pitch in the 50s, Coca-Cola had already established its brand name and a powerful distribution network. In the intervening 40 years, many new markets have emerged. In order to profit from these markets, both Coca-Cola and Pepsi need to find ways to cut through all of the red tape that initially prevents them from conducting business in these markets. This paper seeks to examine these markets and the opportunities and roadblocks that lie within each.Both these companies Coca-Cola and Pepsi are of great caliber. Infact, they are the companies that are ruling the market. Coca-Cola and Pepsi have always competed against each other for a bigger market share. They have come up with a variety of campaigns to get a one-up over each other. They have gone in for blind taste test to advertising campaigns to even garnering customer support through brand ambassadors.

But these companies have faced different difficulties in different parts of the world. But they have overcomed these difficulties and have managed to reach top positions. The difficulties have included political campaigns against them. They include the local competitors in a country against them. This also includes the culture of the country which decides things like the peoples tastes and preferences. They have overcome all these difficulties to sell their products in the markets.

INDUSTRY PROFILE

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The global market consists of two major players; PEPSI and COCO-COLA. Both have universal brand names. They are available in almost 200 countries Pepsi products are served in more than 160 countries, with the emerging middleclass and higher purchasing power the expenditure on soft drinks is bound to increase considerably; this is possible only through intense marketing, which has led to cut-throat competition and the famous cola wars.

Asian youth are among the worlds fastest growing consumer segment today. China, Indonesia and India make up three of the worlds 4 biggest soft drink markets. The fortune 500 majors have duly acknowledged the potential and consumption of beverages, in India, in particular.

The study growth and increasing sales show a highly rewarding future for the soft drinks business in India. Not only have the sales increased but the bottle sizes have also increased from 250 ml to 300 ml. of the total volume, almost 50% is contributed by the colas alone, which are the most widely consumed and promoted drinks internationally. In the cola category, Pepsi is seen as the most aggressive of the lot, followed by Thumps Up from the COCO-COLA portfolio and thirdly COCO-COLA, itself.

Other highlights of the Indian soft drink market are as under:

India is a young country with 20.4% of its population lying in the age group of 15-24 years, which is where the potential for soft drinks lie.

While the per capita consumption of soft drinks in the United States is about 770 servings and 62 servings outside the United States, the per capita consumption in India is a ridiculously low figure of 3 servings per year, which is lower than the average consumption in Pakistan and Bangladesh.

For a population of over 1200 million, India has only 3.15 lakh retailers who stock soft drinks whereas a country like Philippines, with a population 60 million, has 4.5 lakh retail outlets.

It takes an Indian 1.5 hour of work to be able to buy a soft drink while in other developed countries it takes only 5 minutes.

In India consumers pay at least 13 times more than an American for a carbonated soft drink. Soft drink sales have great seasonal fluctuations in India with sales peaking in summers and plummeting in the other seasons. However, soft drink giants are aggressively aiming to make it an anytime drink.

Even today, consumption of soft drinks in India is mostly restricted to special occasions. Consumption of soft drinks is still considered a luxury in India.

The soft drinks industry in India faces many challenges. The soft drinks bottling operation is a capital intensive business, with investment at four levels i.e. cost of plant and equipment, investment in bottles and crates, transportation and cooling structure at retail outlets? In India, the soft drink industry is suffering greatly due to lack of capacity and infrastructure. Additionally, most of the retailers sell a drink for anywhere for Rs.12, thus making it expensive for the customers, as compared to their purchasing power. Most of the people in India are below the poverty line.

But the soft drink market in India has been undergoing tremendous changes since the liberalization of the economy. The industry is growing at a rate of 20% per annum. The arrival of the big giants has caused a phenomenal change in the industry. The face of the soft drink industry is expected to thoroughly change in the coming years.

Over the years Pepsi-Cola has gone through a series of Presidents and CEOs. These men include Herbert Barnet, Donald M. Kendall, Vic Bonomo, John Sculley, Roger Enrico, and Craig Weatherup with each of these men helping Pepsi grow by leaps and bounds. The rest of this profile could go into the contributions of each of these men.

Pepsi-Cola has achieved huge success as a soft drink. However, this was a two sided coin in that Pepsi-Cola was also seen as a cheap soda. Pepsi had to change this perception, and to do so they switched their marketing strategy. Starting in 1958 Pepsi began to lose its reputation as a bargain soda, and instead started becoming a soda that was preferred by fashionable young adults. By the mid 1960's the United States was full of teenagers that had been born shortly after World War II. They were the "Baby Boomers" and they were also the "Pepsi Generation." Pepsi also continued to keep its product from becoming old fashioned by occasionally making small changes in packaging throughout the years. They updated their logo, they replaced the straight sided bottle with the "Swirl" bottle, and also moved from the 12 ounce bottle to a 16 ounce bottle.

Pepsi also started providing other lines of products. They introduced Teem (a lemon/lime based soda). They purchased and went national with Mountain Dew, and also introduced Slice, and started offering a diet version of Pepsi as well. However, one of the biggest changes to occur to Pepsi-Cola happened in 1965 when they merged with Frito-Lay and became PepsiCo, Incorporated.

In 1975 Pepsi introduced the Pepsi Challenge. This was a marketing campaign where they set up a blind tasting between their product and that of their arch-rival Coca-Cola. During these blind taste tests, majority of the participants picked Pepsi as the better tasting of the two soft drinks. Over the next several years Pepsi went on to expand this "Pepsi Challenge" throughout the nation. They also started designing television commercials that reported the results of these tests to the public at large. Pepsi also continued to invest heavily in advertising and started using celebrities such as Michael Jackson, Tina Turner, Michael J. Fox, Joe Montana, Dan Marino, Vice Presidential contender Gealdine Ferraro, and many others to help them market to the "New Generation." It wasn't long before Pepsi became the number one soft drink sold in American supermarkets and they were closing in on becoming the most popular soft drink sold in the nation.

The Pepsi Challenge and the Pepsi advertising blitz were clearly having an effect with more and more people switching from Coca-Cola to Pepsi. As a result Coca-Cola made the decision to change their formula to taste more like Pepsi. Of course, Pepsi took advantage of this situation and really had a field day making fun of Coca-Cola. The president of Pepsi, Roger Enrico, gave his employees a day off by declaring a holiday to celebrate the day they won the cola wars. Television commercials, full page ads in major newspapers, and lots of comedians all on their own, took their shots as well. There was such uproar to this formula change that within a couple of months Coca-Cola had brought back the original Coca-Cola. After switching back to their original formula, Coca-Cola and Pepsi continued to battle it out for supremacy in the cola wars. Pepsi continued to make some great commercials. They featured famous personalities such as Ray Charles, Shaquille O'Neal and others.

Pepsi also moved into other beverage categories by working out deals with Lipton, Ocean Spray, and Starbucks. Pepsi has continued to expand globally throughout the years until practically every nation on the face of the earth either has a bottling plant of their own, or can at least buy a bottle of Pepsi. By 1993, Pepsi-Cola profits had surpassed $1 billion, and in 1998 Pepsi celebrated its 100th anniversary.

HISTORY OF SOFT DRINKS

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 drink to thirsty Parisians.

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 sulphuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large quantities.

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; First, John Mathews invented his apparatus for making carbonated water, and then he mass-manufactured his apparatus for sale which gained great popularity.Time line of soft drinks industry

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" was invented by Caleb Bradham.

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 Ennal Fraze of Kettering, Ohio.

1965: Soft drinks in cans dispensed from vending machines.

1965: The resalable top invented.

1966: The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.

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.

INDIAN SCENARIO OF SOFT DRINKS INDUSTRY

According to government estimates, soft drinks marketed in India were 6540 million bottles in March 2001. The market growth rate, which was around 2-3% in '80s, increased to 5-6% in the early '90s and is presently 7-8% per annum. Most of the sales of soft drinks takes place during summers while just 5-6% of total sales takes place in winters. In summers, the high season lasts for 70-75 days, which contributes more than 50% of the yearly sales. In terms of regional distribution cola drinks have main markets in cities and northern states of UP, Punjab, Haryana etc.

Orange flavored drinks and sodas are popular in southern states. Western markets have preference towards mango-flavored drinks. Non-alcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks available in glass, bottles, aluminum cans, PET bottles or disposable containers can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks which includes mango drinks. Soft drinks can also be divided into cola products and non-cola products. Cola products in Indian include brands like Pepsi Cola, Diet Pepsi, Coca- Cola, Diet Coca-Cola, and Thumps up. Cola drinks account for nearly 61-62% of the total soft drinks market in India. Non-Cola products account for 36% of the total soft drink market.

How Pepsi Entered India

Coca-Cola was forced to leave India in 1977, and Fernandez had personally cited this to Pepsi in his letter when Pepsi was toying around the idea to enter India. It was upto Pepsi to offer a very good package to the Indian government. The promises that Pepsi made played a central role in bringing about an agricultural revolution and employment in the state of Punjab (This was a wonderful offer, given the political/social unrest in Punjab during 1980s).

Focus on food and agro-processing; only 25% of the investment would be for soft drinks business.

Boost the image of Indian products in foreign markets

Creation of 50,000 jobs in India.

Finally, in 1988, it entered India, as a 'Lehar Pepsi' brand (remember that funny sketch comes for 7-up these days?) Pepsi's entry into India was even noted by marketing gurus like Philip Kotler, who said, that Pepsi, apart from using the 4Ps, also used politics and Public Opinion in the process. But, did Pepsi keep all its promises? It didnt, and thankfully, India liberalized, and Pepsi was partly saved. But, Pepsi had done good things for this country. It brought about an amazing increase in tomato production, through contract farming. It also offered its contract farmers with advanced equipments free of cost. It also setup an agro-based research center in Punjab and Karnataka.

Whether Pepsi kept its promise or not, whether the 'pesti'-factor is true or not, it is a matter of no concern as far as the scope of this survey is concern. What is to be seen in the case of 'Pepsi's entry is the way in which it was executed - a strategic coordination of economic, psychological, political and public relations skills to gain the cooperation of a number of parties in order to enter India. In short, we call it in marketing jargon as Mega Marketing!COMPANY PROFILE

A Brief History Of Giant

Early years

Columbus, Georgia druggist John Stith Pemberton invented a cocawine called Pemberton's French Wine Coca in 1885, although it was originally meant to be a headache medicine.

The same year, when Atlanta and Fulton County passed prohibition legislation, Pemberton began to develop a non-alcoholic version of the French Wine Coca. His book keeper (and later lead Marketer), Frank Robinson, coined the name Coca-Cola, because it included the stimulant cocaine and was flavored using kola nuts, a source of caffeine. Pemberton called for 5 ounces (140 grams) of coca leaf per gallon of syrup. The first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 7th, 1886, and for the first eight months only an average of nine drinks were sold each day. Pemberton ran the first advertisement for the beverage on May 29th that year in the Atlanta Journal.

Coca-Cola was initially sold as a patent medicine for five cents a glass. Pemberton claimed Coca-Cola cured myriad diseases, including morphine addiction, dyspepsia, neurasthenia, headache, and impotence.

In 1887, Pemberton sold a stake in his company to Asa Griggs Candler, who incorporated it as the Coca Cola Corporation in 1888. In the same year, Pemberton sold the rights a second time to three more businessmen: J.C. Mayfield, A.O. Murphey, and E.H. Bloodworth.

Meanwhile, Pemberton's son Charley Pemberton began selling his own version of the product.

Three versions of Coca-Cola sold by three separate businesses were in the market.

Under Candler and Woodruff

In an attempt to clarify the situation, John Pemberton declared that the name Coca-Cola belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in the late 1888, in order to force his two competitors out of business. Candler apparently purchased exclusive rights to the formula from John Pemberton, Margaret Dozier, and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.

In 1892, Candler incorporated a second company, The Coca-Cola Company the current corporation. In 1910, Candler had the earliest records of the company burned, further obscuring its legal origins. Regardless, Candler began aggressively marketing the product the efficiency of this concerted advertising campaign would not be realized until much later. Candler pioneered several promotional techniques, such as the distribution of vouchers for free glasses of Coca-Cola, and advertising through media, varying from soda fountain urns to wall murals.

Coca-Cola was sold in bottles for the first time on March 12th, 1894. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were of six-ounce (170-gram) Hutchinson bottles manufactured by Biedenharn and sealed with a rubber gasket. Reportedly leaky, they were soon replaced with "crown top" bottles with straight sides, and sealed with a metal cap; variants of this design remain in use today. The distinctive "hobble-skirt" bottle design now associated with Coca-Cola was introduced in 1915.

Initially, Candler was tentative about bottling the drink, but the two entrepreneurs who proposed the idea were so persuasive that Candler signed a contract giving them control of the procedure. However, the loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies in effect, becoming parent bottlers. This meant that Coca-Cola was originally sold in a wide variety of bottles, until the introduction of the iconic, standardized "hobble-skirt" bottle in 1916.

After the advent of bottling, the company began taking advertising even more seriously than it had before, hiring William D'Arcy, whose creations set the tone for Coca-Cola advertising that his successors would follow. D'Arcy associated Coca-Cola with typical everyday scenes of people going about their daily business; his personal view was that "Coca-Cola advertising should create scenes that drew people in and made them part of the pleasant interludes of everyday life". Instead of targeting particular population segments, D'Arcy attempted to appeal to as broad a class of people as possible, with advertising copy such as "all classes, ages and sexes drink Coca-Cola".

After Candler, the next executive to have a major impact on Coca-Cola's future was Robert Woodruff, who focused on expanding the scope of the business to the rest of the US. A noted workaholic, Woodruff continued to have a major influence on the business long after his retirement until his death in the 1980s. Woodruff inherited leadership of the company from his father, Ernest Woodruff, who had successfully led a campaign to takeover the company from Candler in 1919. Woodruff became President of the Coca-Cola Company four years later. Emphasizing quality in the production of Coca-Cola, he initiated a "Quality Drink" campaign aimed at properly training those who served Coca-Cola at soda fountain outlets. Woodruff was also influential in establishing quality standards for the bottled version of Coca-Cola, which he thought had great potential. Looking beyond the United States, he set up a foreign department of the company in 1926, and began opening manufacturing plants in various European and Central American countries. It was Woodruff who assumed responsibility for designing Coca-Cola's foreign advertising campaigns, affixing the company logo to racing dog sleds in Canada and Spanish bullfighting arenas. He also introduced some new forms of distributing Coca-Cola, such as the six-pack carton, which made bulk purchases of Coca-Cola substantially easier.

In 1929, the onset of the Great Depression led to fears that sales might be depressed for the year. However, an advertising campaign spearheaded with the slogan "the pause that refreshes" led per capita consumption of Coca-Cola to actually double. That same year, sales of bottled Coca-Cola overtook those of Coca-Cola sold at soda fountains for the first time. Throughout the Great Depression, Coca-Cola advertising continued to be upbeat, despite the bleak economic outlook; a 1935 advertisement depicted a man nonchalantly smiling on his way to work, presenting an idealised view of American life at the time. The proliferation of Coca-Cola and a newcomer to the soft drink market, Pepsi, during this period led to a decline in the sales of Moxie, which had outsold Coca-Cola as recently as 1920, and continued to rival Coca-Cola's dominance of the American market. The decision of its manufacturer to cut back on advertising expenditure led to Moxie's eventual marginalization in the United States.

The Great Depression, however, also saw a setback for Coca-Cola with the arrival of a new competitor Pepsi; by offering twelve-ounce bottles for the same price (five cents) as Coca-Cola's six-ounce bottles, as well as a musical jingle in its advertising campaign, PepsiCo succeeded in becoming a challenger to Coca-Cola's dominance of the American market, with its profits doubling from 1936 to 1938.

World War II to the 1970s

When the United States entered World War II, sugar rationing in the United States meant Coca-Cola was unable to produce drinks at full capacity. However, a deal was struck between the U.S. government and Coca-Cola whereby the company was exempted from sugar rationing, while Coca-Cola supplied free drinks to the United States Army. The U.S. Army permitted Coca-Cola employees to enter the front lines as "Technical Officers" where they operated Coca-Cola's system of providing refreshments for soldiers, who welcomed the beverage as a reminder of home. After the war, the soldiers brought home their newfound taste for Coca-Cola, popularising the drink. A survey of soldiers after the war indicated that veterans preferred Coca-Cola to Pepsi by an 8 to 1 ratio. Coca-Cola has been criticised for its decision to continue trading in Nazi Germany. Eventually, the difficulty of shipping Coca-Cola concentrate to Germany and its occupied states, due to the allied blockades, led to the creation of a new drink (Fanta) by a Coca-Cola employee. Fanta is still sold worldwide to this day.

Another wartime innovation was the trademarking of "Coke" by the Coca-Cola Company, validating it as a way of referring to Coca-Cola. Although widely prevalent in vernacular usage, the company had initially fought against this practice with the reasoning that "nicknames encourage substitution". Advertising campaigns encouraged people to "ask for 'Coca-Cola' by its full name," but people persisted in asking simply for "Coke". In 1941, the company resignedly began advertising Coca-Cola jointly as Coca-Cola and Coke. In 1945, the "Coke" name was trademarked.

After World War II, Coke began expanding worldwide. Initially having been restricted only to North America and Western Europe, Coke was soon being distributed in numerous other countries, especially those, such as the Philippines, which had been occupied by the Americans during World War II. The process was aided by the company assuming control of a number of Coca-Cola manufacturing plants which had been established during the war by the army, with help from the company, in order to spur distribution of the drink to soldiers.

1985 to the Present

New Coke original logo from 1985-1988.

In April 1985, The Coca-Cola Corporation launched a reformulated Coca-Cola, dubbed New Coke with an intense marketing effort. New Coke was an almost complete market failure. Public backlash to the new formulation was significant, and The Coca-Cola Corporation re-launched the original formula in July, 1985 under the brand "Coca-Cola Classic".

Internationally, sales of Coca-Cola vary from country to country; although it is the dominant soft drink in virtually every country it is sold. Coca-Cola is considered to be one of the most widely distributed products in the world, and can be obtained in nearly every locality of the world, from rural Nepal, to Africa, to Beijing.

PRODUCTS OF COCA COLA

Carbonated Soft Drinks and Functional Beverages

Coca-Cola manufactures and distributes a range of carbonated soft drinks and functional beverages. Many of the brands are trademarks of The Coca-Cola Company such as Lift, Sprite, Fanta and Powerade. It also controls a portfolio of its own beverages including Kirks and Deep Spring.

Health and Wellbeing

In recent years Coca-Cola Company has become a broader beverage company, offering different solutions for different drinking occasions. Water,Juice and low calorie CSD's are increasingly becoming the growth categories of its business.

In 2004 Coca-Cola Company acquired SPC Ardmona. This acquisition moved into the food manufacturing and distributing business.

Someof Coca-Cola BeverageBrands:Coca-Cola

Sprite

Thumps Up

Fanta

Maaza

Finley waterCOMPETATORS OF COCA COLA:

PepsiSlice

7up

Limca

Aquafina

Mountain Dew

Other beveragesGrowth DriversProduct and package innovation

Non-carbonated beverage and food expansion

Growing product availability through cold drink equipment placementand outlet expansion

Improved customer service and in-market activation

Revenue management and cost discipline

People

At COCA COLA people are their business. It foster an open and inclusive environment in which their people can strive to always look for a better way.

They actively promote diversity and equality in their workplace. They know their people work hard and, as they move forward, they are putting measures in placed to encourage a healthy work-life balance for their employees. They are committed to providing and maintaining a safe and healthy workplace for all employees, suppliers, contractors and visitors. They constructively deal with their people in good faith, while respecting their relationships with their people and/or any representatives they may choose.

These commitments not only meet all legal requirements and national standards in the countries in which they do business, but also cultivate a highly motivated, productive and committed workforce that drives their business success.Work-life balanceCOCA-COLA recognizes that their employees are constantly juggling commitments from their home, work and personal lives. At different times in an employees career they may need greater work flexibility and they aim to assist them in achieving a healthy work-life balance.

They provide a number of employee benefits including flexible working arrangements through their Flexible Work Options Policy, such as job sharing and part-time work, volunteer services leave, and paid parental and adoption leave.

In 2006, in recognition of the fact that their employees may wish to take more than their usual annual leave entitlement, they introduced Annual Leave Salary Sacrifice Plan, whereby employees are able to purchase additional annual leave.

Learning and DevelopmentCOCA-COLA employs quality people and develops them for current and future roles within a climate of continual learning.They provide appropriate and meaningful learning opportunities so that their employees can perform at their maximum potential and develop personally and professionally.

They believe that a productive learning and development environment can be achieved through the consistent application of these basic steps:

Incorporating Learning and Development into Functional Business Plans

Ensuring access and equity in the provision for and conduct of training and assessment opportunities via their individual development plans for employees

Educating employees about learning and development opportunities

Providing performance management materials on their intranet.Remuneration COCA-COLA believes in paying competitively within each market in which they operate. They hold each other accountable for performance and reward employees commensurate with their performance.

Their remuneration and benefits are reviewed regularly to ensure they are fair and in line with the current market.

EqualEmployment Opportunity and DiversityAt COCA-COLA, they value diversity. They believe in equal opportunity employment and foster a work environment which is inclusive and allows all employees to develop both personally and professionally. They are committed to providing a safe and harmonious work environment free from harassment and discrimination and in line with legislative requirements. Our Working Together Policy outlines this commitment.In addition, there are a number of procedures and initiatives in place that ensure they fulfil their commitment to being an equal opportunity employer. Initiatives, such,increasing the number of women in their workplace ensure that they continue to improve in this area.

Occupational Health and Safety (OH&S)The occupational health, safety and welfare of all employees are of primary concern to Coca-Colas management. They are dedicated to the provision of a healthy and safe workplace.They acknowledge that OH&S is the responsibility of management and every employee, and they recognize the importance of leading and promoting the highest principles and practices to ensure health and safety across their operations.

This is evident through their health and safety philosophy:

All accidents, incidents and occupational illnesses are preventable

All managers are accountable for the management of health and safety, injury management and workers compensation

Executive management has direct involvement in the OH&S Management System and Workers Compensation System

Occupational health and safety is a condition of employment and all employees are responsible for complying with legislative and company OH&S requirements

Training is a critical component of the OH&S, compensation and injury programs

Safety audits and inspections are carried out by all organization levels

All hazards and deficiencies shall be corrected promptly

Off-the-job health and safety is an important part of the health and safety effort.

CHAPTER 3DESIGN OF THE STUDY

TITLE OF THE STUDY

To study the market share of COCA-COLA INDIA LIMITED so as to find the various problems which might arise once the products are commercialized in the market. This study aims to know the customer preference and attitude regarding COCA-COLA products.

Statement of the problem

As per the survey conducted we can conclude that the market share of Coca-Cola is approximately 90%in SIRUGUPPA The main objectives of the study are:-

To study the historical background of COCA-COLA INDIA LIMITED.

To study the competitive environment.

To determine critical evaluation of the market.

To study the effectiveness of the market in todays world.

To analyze the functions, procedures in the market share analysis.

To suggest some strategies, remedies in various aspects of improving market share.

To equip myself better in the area of market share analysis.

Scope of the study

At COCA-COLA INDIA LIMITED plant this study was conducted to find the facts its market share and how to increase it.

In accordance with the present trends it aims mainly at finding out the market share of COCA-COLA INDIA LIMITED in the market.RESEARCH METHODOLOGY

METHODOLOGY OF DATA COLLECTION

Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In Research Methodology we study various steps that are generally adopted by a researcher in studying this research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide certain techniques and procedures applicable to certain problems. This means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem.

Research Methodology has many dimensions and research methods do constitute a part of the research methodology. The scope of Research Methodology is wider than that of research methods. Thus, when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we use particular method or technique so that research results are capable of being evaluated either by researcher himself or by herself.

Sources of DataImportant criteria for the validity of any research study in a methodical way.

In research to get meaningful information, data collected should be accurate and reliable. There are 2 sources of data collection1. Primary Data and

2. Secondary Data.

The Primary Data was collected from having discussions with marketing officers and various retailers. It was also collected through a survey of consumers by using the technique of questionnaire.

The Secondary Data for this study has been collected by referring to various records of COCA-COLA INDIA LIMITED; it was also collected from some important journals magazines and websitesType of Sample design

There are two types of sample design:

1. Probability Sample

2. Non- Probability Sample

Probability Sample

1. Simple Random Sample: Every member of the population has an equal chance of selection.

2. Stratified random Sample: The population is divided into mutually exclusive and mutually exhaustive strata or sub groups and simple random is selected from each sub-group.

3. Cluster Sample: It implies that instead of selecting individual units from population, entire groups or clusters are selected at random.

Non- Probability Sample

1. Convenience Sample: This sample is based on the convenience of the researcher who is to select a sample.

2. Judgment Sample: The units or elements are purposively selected in this sample.

3. Quota Sample: The researcher finds and interviews a prescribed number of people in several categories.

In this study, the sample design selected is random sampling.

Simple Size Decision

The important decision that has to be taken by the researcher is determining the size of the sample.

Sample size can be determined by practical approach and statistical approach. Generally practical approach is widely used by the researcher.

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Tools and Techniques of Data CollectionQuestionnaireQuestionnaires are an inexpensive way to gather data from a potentially large number of respondents. Often they are the only feasible way to reach a number of reviewers large enough to allow statistically analysis of the results. Questionnaires are quite flexible in what they can measure; however they are not equally suited to measuring all types of data. We can classify data in two ways, Subjective vs. Objective and Quantitative vs. Qualitative. Different types of questions are consolidated for collecting exhaustive information regarding the market of Coca-Cola.

Analysis and interpretation

The analysis and interpretation was done from the data collected through the questionnaires, processed and tabulated in the form of tables and graphs. The table thus obtained by calculating average, percentage, graphs and diagrams to draw conclusions from the analysis was done.Limitation of the study

Time restriction.

The information, which was needed, could not be made public by the organization.

Discussion with all related officials was not possible.

The study covered a vast concept hence wide collection and coverage of information was not easily possible.

Duration for the study was another limiting factor as the report was to be completed in 6 weeks time DEFINATION OF MARKET:

Market is defined as a place where buyers and sellers meet together for exchange of goods and services and their values are determined in terms of money or moneys worth and also to share mutual understanding with each other.

Therefore, it is essential to know the market and find out the potential customers of the company. The performance of business activities that direct the flow of goods and services from the producers or suppliers to the customers and end users. MARKET SHARE ANALYSIS:

Market share analysis refers to a process of scanning the environment and finding out the prospective customers of the company. This also helps the company to know their share in the market compared to their competitors.

Market is in fact concerned with the sophisticated strategy of endeavoring to offer the consumers what they need.

Problems in Market share analysis.

1. Inaccurate results

2. It is an expensive exercise

3. It is time consuming affair4. It gives tips to competitors

How is Market share analysis conducted?

Market share analysis is rapidly approaching the stage of science or at least highly developed art. Some companies develop their own plans for test marketing and some others depend largely on advertising agencies and specialized consultancy houses. Market share analysis plan design covers the following points 1. Number of cities to be selected

2. Length of test run

3. The information to be collected

4. Action to be taken

Selection of cities is influenced by the factors of representative ness and cost

The length of test run is decided by the factors of average repurchase period, competition and cost

What information is to be collected is related to two points namely, sales and profitability in case of alternative plans

The action to be taken is either to go in for commercialization or abandon the case.

Why Market share analysis?

1. To improve the knowledge of potential product sales

2. To predict alternative marketing plans

3. To predict product faults

4. To know the reactions of competitorANALYSIS AND INTEPRETATIONNAME OF THE RETAIL STORES:

1. DARSHAN WINES

2. CHOICE DAILY NEEDS

3. IYENGAR BAKERY

4. VISVES BAKERY

5. A.S. BAKERY

6. MACS STORES

7. MODERN BAKERY

8. AISHWARIYA BAKERY

9. ABHIRAMI BAKERY

10. VENKATESHWARA STORES

11. H.P. COFFEE BAR

12. KARNATAKA STORES

13. ASHWINI BAKERY

14. BHAVISHYA BAKERY

15. VASANT STORES

16. VENUM BAKE POINT

17. SURYA STORES

18. KM FAZAL PROVISION STORES

19. LOVELY BAKERY

20. CITY FOODS

ADDRESS OF THE STORE:

1. Which brand of soft drinks do you purchase and sell the most in your store?BRANDNO. OF RESPONDENTS

PERCENTAGE

PEPSI

210%

COCACOLA

1890%

From the above table and the graph we can infer that most of the respondents prefer COCA-COLA as their soft drink

We can also tell that almost 90% of the respondents purchase and sell only COCA-COLA products as against only 10% of PEPSI products

GRAPH SHOWING THE PURCHASING AND SELLING SATISFACTION OF RETAILERS

2. Which brand of Coca-Cola do customers prefer the most?

BRANDNO. ORF RESPONDENTSPERCENTAGE

COCA-COLA

210

SPRITE7

35

LIMCA210

THUMSUP630

FANTA15

MAAZA210

From the table we can tell that SPRITE has the maximum sales when compared to other products like THUMPS UP with 30%, followed by LIMCA, MAAZA, and COCA- COLA with 10% and FANTA with 5%GRAPH SHOWING THE MOST LIKED BRAND OF COCA-COLA

3. Are you satisfied with the sales of Coca-Cola?

NO. OF RESPONDENTSPERCENTAGE

YES

1890

NO210

From the table we can infer that 90% of the respondents were satisfied with the sales of all COCA-COLA products as against 10% satisfaction with PEPSI products

GRAPH SHOWING THE SATISFACTION LEVEL

4. Do you think advertisements, offers of Coca-Cola brands help in increasing the demand of the products?

NO. OF RESPONDENTSPERCENTAGE

TOTALLY AGREE

840%

AGREE

630%

NEUTRAL

420%

DISAGREE

15%

TOTALLY DISAGREE

15%

We can infer that offers advertisements provided by the company are very good. We can see that 40%of the retailers were in total agreement with it where as only 30%,20%were in agreement and neutral and only 10%of them were not satisfied with the offers

GRAPH SHOWINGTHE INCREASE IN DEMAND

5. How many cases do you sell in a week?

NO. OF RESPONDENTSPERCENTAGE

LESS THAN 25 CASES

1365%

MORE THAN 25 CASES

525%

MORE THAN 50 CASES

210%

Most of the respondents sold less than 25 cases in a week and the rest shared with other retailers who sold more than 25 and 50 cases respectively every week

GRAPH SHOWING THE SALES WITH RESPECT TO CASES SOLD

6. Which package do customers prefer?

NO. OF RESPONDENTSPERCENTAGE

PET BOTTLES

630%

GLASS BOTTLES

1470%

From the table we can infer that 70% of the respondents preferred their Cola in Glass bottles as against 30%of the respondents preferred in pet bottles

GRAPH SHOWING THE PACKAGE PREFERRED BY CUSTOMERS

7. Compare the brand with respect to the following:TASTEPRICE BRANDINGNO. OF RESPONDENTSPERCENTAGE

PEPSI

11210%

COCA-COLA

4141890%

From the table we can infer that 90% of the respondents preferred COCA-COLA as against 10% PEPSI with respect to taste and branding as the price was the same GRAPH SHOWING THE COMPARISON BETWEEN PEPSI AND COCA-COLA

8. Number of bottles present in the store

WARMCHILLEDEMPTYNO. OF RESPONDENTSPERCENTAGE

PEPSILess than20Less than 10More than 50210%

COCA-COLALess than 10More than 30Less than101890%

90% of the respondents had more chilled bottles of COCA-COLA rather than PEPSI since these products were fast moving and the number of empty bottles were also less as they were replaced with filled ones as and when they became empty.

GRAPH SHOWING THE NUMBER OF BOTTLES PRESENT IN THE STORE

9. Which company do you think will provide the maximum after sales service?

NO. OF RESPONDENTSPERCENTAGE

PEPSI

210%

COCA-COLA

1890%

From the survey conducted we can infer that 90% of the respondents liked the post sales service of COCA-COLA rather than PEPSI since they hardly contacted them GRAPH SHOWING THE COMPANY WHICH PROVIDES MAXIMUM AFTER SALES SERVICE

10. Which media is more effective in advertising Coca-Cola brands?

NO. OF RESPONDENTSPERCENTAGE

NEWSPAPER

735%

TELEVISION

945%

MAGAZINES

420%

From the survey we can infer that 45% of the respondents felt that T.V is more effective in advertising Coca-Cola products than other forms of media Newspaper and Magazines were with 35 and 20% respectively.GRAPH SHOWING THE MEDIA WHICH IS MORE EFFECTIVE

11. The bill amount of PEPSI and COCA-COLA on a weekly basis?

LESS THAN

1000MORE THAN

1000MORE THAN 2000NO. OF RESPONDENTSPERCENTAGE

PEPSI112

10%

COCA-COLA26101890%

From the survey it was found that only 10%of the respondents had Pepsis bills and the rest 90%of the respondents had only Coca-Cola which exceeded than that of Pepsi.GRAPH SHOWING BILL AMOUNTS

SUMMARY OF FINDINGS:

1. It was found that 90%of the customers were satisfied with sales, services, taste, branding and pricing of all Coca-Cola products.

2. It was also found that the bills of Coca-Cola exceeded than that of Pepsi.

3. It was also interpreted that all the advertisements and offers offered by Coca-Cola products were amazing since most of the customers were satisfied with them.

4. We can also see that most of sales contribution was from glass bottles rather than pet bottles and customers are becoming eco friendly as they know that plastic bottles are harmful to them.

5. It was also seen that Sprite almost contributed to 50% of the sales of all other Coca-Cola products like Thumbs up, Coca-Cola, Fanta and Maaza.

6. It was also seen that newspaper and T.V. contributed to maximum awareness among customers.

SUGGESTIONS:

1. In order to maximize their sales the company should allow price discounts to their regular customers and to those customers who sell their products in large quantities.

2. Pay the customers 20% of their electricity bills as they keep their coolers switched on for 24 hours everyday.

3. Provide discounts on bills exceeding Rs5000 per month.

4. Provide extra free bottles with each case.

5. Provide banners and hoardings for their stores with the name of the store and different products of Coca-Cola.6. Faster replacement of damaged and leaked bottles.

7. Extra credit facilities to their customers who pay their bills on a regular basis.

8. No wonder Coca-Cola is making more sales than Pepsi in soft drinks but Pepsi is making profits from their food products like lays and other eatables .Therefore, Coca-Cola should also start providing some eatables in order to maximize their profits.

BIBLOGRAPHYQUESTIONAIRE

NAME OF THE STORE:

ADDRESS OF THE STORE:

1. Which brand of soft drinks do you purchase and sell the most in your store?a. Pepsi

b. Coca-Cola

2. Which brand of Coco-Cola do customers prefer the most?

a. Coca-Cola

b. Sprite

c. Limca

d. Thumsup

e. Fanta

f. Maaza

3. Are you satisfied with the sales of Coca-Cola?

a. Yes

b. No

4. Do you think advertisements, offers of Coca-Cola brands help in increasing the demand of the products?

TOTALLY AGREEAGREENEUTRALDISAGREETOTALLY DISAGREE

5. How many cases do you sell in a week?

a. less than 25 casesb. more than 25 cases

c. more than 50 cases6. Which package do customers prefer?

a. Pet bottles

b. Glass bottles

7. Compare the products with respect to the following

PEPSI

COCA-COLA

TASTETASTE

PRICE PRICE

BRANDINGBRANDING

8. Number of bottles present in the store

PEPSI

COCA-COLA

a. Warm

b. Chilled

c. Empty

9. Which company do you think provides the maximum after sales service?

a. Pepsi

b. Coca-Cola

10. Which media is more effective in advertising Coca Cola brands?

a. Newspaper

b. T.V

c. Magazines

11. The bill amount of PEPSI and COCA-COLA on a regular basis

a. less than Rs1000

b. more than Rs1000

c. more than Rs2000

WEBSITES:

website: www.Coca-ColaIndia.comBOOKS REFERRED:

KOTLER PHILIP, Marketing Management

REDDY AND APPANIAH, Marketing Management

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