Coca Cola - JIMS Finalmunjal

8/3/2019 Coca Cola - JIMS Finalmunjal

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TABLE OF CONTENTS

CHAPTER-1 INTRODUCTION

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

1.2 PROFILE OF THE COMPANY

1.3 PROBLEMS OF THE COMPANY

1.4 COMPETITION INFORMATION

1.5 SWOT ANALYSIS

CHAPTER-2OBJECTIVE AND METHODOLOGY

2.1 SIGNIFICANCE

2.2 MANAGERIAL USEFULLNESS OF THE STUDY

2.3 OBJECTIVE OF THE STUDY

2.4 SCOPE OF THE STUDY

2.5 RESEARCH METHODOLOGY

2.6 LIMITATIONS OF THE STUDY

CHAPTER-3 CONCEPTUAL DISCUSSION

CHAPTER-4 DATA ANALYSIS


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CHAPTER-5 FINDINGS AND RECOMMENDATIONS

Annexures

Questionnaire

Bibliograph


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1.1 OVERVIEW OF THE SOFT DRINK INDUSTRY

BACKGROUND

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 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: Pepsi and Coke, the market has come totally under their

control. While world wide Coke is the leader in carbonated drinks market in India it is

Pepsi which scores over Coke but this difference is fast decreasing (courtesy huge ad-

spending by both the players). Pepsi entered Indian market in 1991 coke re-entered (After

they were thrown out in 1977, by the then central government) in 1993.

Pepsi has been targeting its products towards youth and it has struck right chord with the

market and the sales have been doing well by sticking to this youth bandwagon. Coke on

the other hand struggled initially in establishing it self in the market. In a span of 7 years

of its operations in the county it changed its CEO four times but finally they seem to have

started understanding the pulse of Indian consumers.

Soft drinks are available in glass bottles, aluminum cans and PET bottles for home

consumption. Fountains also dispense them in disposable containers.

Segmentation

The soft drink market can be segmented on the basis of place of consumption or on the

basis of type of products.

The segmentation on the basis of place of consumption divides the market into two parts:


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On-premise-80% of the consumption of soft drinks is on premise i.e. restaurants,

railways stations, cinema etc.

At-home- the rest 20% of the market compromises of the soft drink purchased for

consumption at home.

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 Pepsi, Coca-Cola, Thumps Up, Diet Coke, and

Diet 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

Mango

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Consumer Habits and Practices

Soft drinks come under the category of products purchased in impulse.

Though the market is marred by brand loyalty the purchase decision itself is a

low involvement decision. This attitude of impulse buying is slowly changing

to occasion-led buying and also to some extent to consumption through home

refrigeration particularly in urban areas.

The market is slowly moving from non alcoholic carbonated drinks to fruit

based drinks and also to plain bottled water due to lower price and ready

availability.

Consumers purchase soft drinks primarily to quench thirst. Therefore people

traveling and not having access to hygienic water reach out for soft drink. This

accounts for a large part of the sales.

Brand awareness plays a crucial role in purchase decisions.

Consumers prefer convenient and economy products.

Availability in the chilled form affects the purchase decision. This has made

both the companies to push its sales and to increase its retail distribution by

offering Coolers to retailers.

While there is no aversion to consumption of soft drinks by any age group, the

main consumers of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But

brand loyalty is high in the case of kids and people in the age group of 20-30

yrs.

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Market Size And Growth

Soft drink market size for FY00 was around 270mn cases (6480mn bottles). The market,

which was witnessing 5-6% growth in the early 90s and even slower growth at around 2-

3% in late 80s. Presently the market growth has slowed down with growth rate of 7-8%

per annum compared to 22% growth rate in the previous year. The market size for FY01

is expected to be 7000 million bottles.

Year Production (Mn bottles)

88-89 1968

89-90 2070

90-91 2195

91-92 2490

92-93 2800

93-94 3000

94-95 3240

95-96 4000

96-97 4450

97-98 4920

98-99 5670

99-00 6480

2003-04(E) 7000

The market growth of 22% till last year has got stifled due to high excise duty of 40%

leading to higher price of the end product.

Market Characteristics:

The soft drink market is highly skewed in terms of place of consumption, in terms of

regional distribution & soft drink flavors as well as in terms of SKUs

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While 80% of the consumption is impulse based outside home 20% comes from

consumption at home. This trend is slowly changing with increase in occasion led sales.

Changing life style, increasing urbanization and impact of liberalization has slowly and

gradually started moving the market from impulse led to occasion led and home

refrigeration led consumption.

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.

Major Players And Market Shares

The two global majors Pepsi and Coca-Cola dominate the soft drink market in India.

Coca-Cola, which had winded up its India operations during the introduction of the

FERA regime, reentered India 16 years later in 1993. Coca-Cola acquired a major chunk

of the soft drink market by buying out local brands Thumps Up, Limca and Gold Spot

from Parle Beverages. Coca Cola has also acquired Cadbury Schweppes soft drink brands

Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired

distribution rights of these brands from IFB Agro Limited. Pepsi although started a

couple of years before Coca Cola in 1991, has a lower market share today. It has bought

over Mumbai based Dukes range of soft drink brands. Both the cola manufacturers come

up with their own market share figures and claim to have increased their share. Recently

in August '00 Pepsi claimed to have increased its market share for first five months of

calendar year 2000, to 49% from earlier levels of 47.3%, while Coke claims to have

increased its share in the market to 57% in the same period from 55% in the

corresponding period last year. Coke figures are based on ORG's data while that of Pepsi

are based on IMRB data.

Market Share (in %)

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Brand Name Market Share (in %) ( ORGfigures)

Market Share (in %) (IMRBfigures)

Pepsi 41 49

Coca Cola 57 48

Distribution Network

There is no involvement of wholesalers in the distribution of products. It is more like an

agent network. The companies have divided the country into various regions and

established a franchisee in each region. The franchisees have their own bottling plants

and manage all the day-to-day operations. However, of late, the soft drinks companies

have started setting up company owned bottling units/ have been acquiring some of its

franchise bottles.

INDIAN SOFT DRINK INDUSTRY

Dating back to 1993 the share of Cola In all types of soft drinks was (40%), that of

orange (20%), Lime and Lemon (30%) and that of Fruit Juice (10%). Of the Rs. 10,000

crore processed food market, cold beverage % share was 16%. Rs. 1,200 crore Indian soft

drink market has grown at an average of 2.5 to 3% from 1984 to 1992. In unit terms,

total market, today is about 110 million cases where per capita consumption of soft

drinks is in India, which amounts to about 5.3 bottles per year.

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Having begun in 1949, by 1978, Parle led the Indian soft drink Industry market with a

share of 33%. Theyre strongest and highest selling brand, Thums Up contributes to its

growth in 1990 when the market share touched 70%.

But with arrival of Pepsi it has climbed down to 53% Pepsi had a market share of about

20% in early 90's.

Till 1990, Parle's chief rival was pure drinks, but had been constantly losing out to Parle

and with arrival of Pepsi it has come down to a more 6% from 10%, and its position in

the market is still deteriorating.

Pure drinks owner was Late Charanjit Singh and his Company's share was largely

affected by less number of bottling plants and a limited distribution network, exactly the

same reason why Pepsi could not touch or match Parle in the last few years.

Till 1994, Parle had 60 bottlers against 'Pepsi's 20 and now Pepsi's bottlers have

increased from 20 to 40 bottlers. At that time Coke had around 2,10,000 retailers against

Pepsi's 1,50,000. 70% of Pepsi' plants are in rural areas. In 1977, a change in the

government at the centre led to the exit of Coca Cola, which preferred to quit rather than

dilute its equity to 40% in compliance with permissions of FERA. So Campa Cola till

late 70's was practically alone in the Cola market.

The beginning of 80's saw the emergence/birth of another Cola drink, Thums UP. (Was

launched by Parle in 1978-79). By mid 80's there was thrill by Mcdowells, and by late

80's, came in double Cola.

Double Cola manufacturing Co., was an NRI-run outfit with its plant at Nasik Double

Cola (Maharashtra). (It is a U.S. based double Cola co. licensee, and 5 of its 6 franchises

were NRI's)

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Another threat was that of fruit drinks. In 1988, fruit drinks market was valued at Rs. 40

Crore widening at a vigorous rate of 20%. Parle's FROOTI was the brand leader. Today

its market size is about Rs. 90 crore. (But the growth rate in past few years. has slowed

down).

The reason for success in late 80's of Frooti was clue to not only the packaging

revolution, but also the established network of Parle dealers at the right time.

The non-aerated drink market comprises of squashes, syrups and concentrates.

The 3,000 crore Indian soft drink industry is subdivided into the following categories

Cola : Pepsi, Coke, Thums Up, Sports Cola, Campa Cola

Orange : Mirinda, Fanta, Gold Spot, Crush, Campa Orange

Mango : Slice, Maaza, Mangola

Cloudy : Teem, Limca, Lemonade Schweppes

Clear : 7 Up, Citra, Canada Dry

Soda : Lehar Everest, Dukes, Bisleri Club Soda

1.2 COMPANY PROFILE - COCA COLA

The best has been made even better. Some may choose to call this the boldest single

marketing move in the history of the packaged-goods business. We simply call it the

surest move ever made because the taste of coke was shaped by the taste of the

consumer.

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- Roberto Goizueta at the launch of New Coke

AN INTRODUCTION

The Coca-Cola Company, popularly known as COKE was the largest aerated beverage

manufacturer in the world. Based in Atlanta, coke recorded sales of $18.81 billion and

profits of $3.53 billion in 2003. While sales had increased by 0.3%, profits had dropped

substantially by 14.3% Coca Cola was one of the largest employers in the world with a

staff strength of 30,000 in 2004. Renowned investor, Warren Buffet held an 8%stake in

the company.

In terms of, market capitalization, Coke was ranked 9 th in the world.

Coca-Cola and its subsidiaries operated in about 200 countries across the globe. Nearly

70% of sales and 80% of profits came from its international operations.

The company took pride in running what it claimed to be a global business that took care

of local needs. The flagship grand, Coca-Cola, was arguably the most valuable brand in

the world. The brand contributed nearly 70% of Cokes total sales. Worldwide Coke had

two of the three top- selling soft drinks: - COLA CLASSIC (#1) DIET COKES

(#3)&PEPSI at (#2).

India CEO Alexender Von Behr

He will surely add fizz to Coca-

Colas operations in the country.

After all, ALEXENDER VON

BEHR, 41, who took over from

departing Coca-Cola India CEO,

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Donald Short, has the reputation of being a trouble shooter who, as the companys

Director, Operations (Southeast & west Asia), steered it through the great Southeast

Asian meltdown last year. I am excited about my new role .we are committed to

developing the industry, says Alexander, who has had varied experience, with

companies as diverse as tobacco, giant Phillip Morris and consultancy major McKinsey

& Co

He is also a keen golfer, is talking about lobbying foe excise duty rationalization on soft

drinks. Looks like hes going to kick off his innings with a lot ofFIZZZZ.

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PRODUCTS

The world's favorite drink. The world's most valuable brand. The most recognizable word

across the world after OK. Coca-Cola has a truly remarkable heritage. From a humble

beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and

distributor of non-alcoholic beverages in the world. Coca-Cola made its return to the

country in 1993 and made significant investments to ensure that the beverage is available

to more and more people, even in the remote and inaccessible parts of the nation.

Coca-Cola returned to India in 1993 and over the past ten years has captured the

imagination of the nation, building strong associations with cricket, the thriving cinema

industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring

the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in

Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and

Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-

Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand

to make it India's favorite soft-drink brand. In 2003, Coke was available for just Rs. 5

across the country and this pricing initiative together with improved distribution ensured

that all brands in the portfolio grew leaps and bounds.

Coca-Cola had signed on various celebrities including movie stars such as Karishma

Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in

the past and today, its brand ambassadors are Aamir Khan, Aishwarya Rai, Vivek

Oberoi and cricketerVirendra Sehwag.

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Strong Cola Taste, Exciting Personality

Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally

introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.

Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely

masculine attitude. This brand clearly seeks to separate the men from the boys.

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one ofthe favorite drinks since 1940's. Fanta entered the Indian market in 1993.

Over the years Fanta has occupied a strong market place and is identified as "The Fun

Catalyst"

Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and

tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging

one to indulge in the moment. This positive imagery is associated with happy, cheerful

and special times with friends.

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Lime n' lemoni Limca , the drink that can cast a tangy refreshing spell on anyone,

anywhere. Born in 1971, Limca has been the original thirst choice, of millions of

consumers for over 3 decades.

The brand has been displaying healthy volume growths year on year and Limca continues

to be the leading flavour soft drink in the country.

The sharp fizz and lemoni bite combined with the single minded positioning of the brand

as the ultimate refresher has continuously strengthened the brand franchise. Limca

energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk

away a new person.

Worldwide Sprite is ranked as the No. 4 soft drink &is sold in more than 190 countries.

In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest

growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth

icon. Why? With a strong appeal to the youth, Sprite hasstood for a straight forward and

honest attitude. Its clear crisp refers hing taste encourages the today's youth to trust their

instincts ,influence them to be true to who they are and to obey their thirst.

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Kinley water understands the importance and value of this life giving force. Kinley water

thus promises water that is as pure as it is meant to be. Water you can trust to be truly

safe and pure.

Kinley water comes with the assurance of safety from the Coca-Cola Company. That is

why we introduced Kinley with reverse-osmosis along with the latest technology to

ensure the purity of our product. That's why we go through rigorous testing procedures at

each and every location where Kinley is produced.

Quality Is Our Highest Business Objective

The Coca-Cola Company exists to benefit and refresh everyone it touches. For us,

Quality is more than just something we taste or see or measure. It shows in our every

action. We relentlessly strive to exceed the world's ever-changing expectations because

keeping our Quality promise in the marketplace is our highest business objective and our

enduring obligation.

1.3 PROBLEMS OF THE COMPANY

The company withheld a lot of information, which they termed as confidential, as a

result of which secondly data had to be reviled upon.

The exhaustive nature of the project comprising of 2 divisions of the company took

plenty amount of time in analyzing and prosecuting the report.

It has been a problem collecting secondary data on divisions like HR and Public

relation-as there were no release in any publications or was there a mention of it on

the company web site. As a result most information was collected though my

primary sources and regular Visits to the personnel concerned, and interviews.

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1.4 COMPETITION INFORMATION

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in

some localities. Around the world, some local brands do compete with Coke. In South

and Central America, Kola Real, known as Big Cola in Mexico, is a fast growing

competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by

brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French

region ofBretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola.

However, The Coca-Cola Companypurchased the brand in 1999. In Sweden, Julmust

outsells Coca-Cola during the Christmas season. In Scotland, the locally-produced

Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke

began to outpace its sales.

In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local

drinkThums Up. However, The Coca-Cola Companypurchased Thums Up in 1993.

Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there

exists a United States embargo. Mecca Cola, in the Middle East, is a competitor to

Coca-Cola.

In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and

also many countries of Middle East, Zam Zam Cola and Parsi Cola are major

competitors to Coca-Cola.

In some parts of China, Future cola or can be bought. InSlovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the

inexpensive Mercator Cola, which is sold only in the country's biggest supermarket

chain, Mercator. Finally, in Madagascar, Classiko Cola made by Tiko Group the

largest manufactured company in the country is a serious competitor to Coca-Cola in

many regions.

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http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Kola_Realhttp://en.wikipedia.org/wiki/Big_Colahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Corsicahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bretagnehttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Inca_Kolahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Julmusthttp://en.wikipedia.org/wiki/Christmashttp://en.wikipedia.org/wiki/Scotlandhttp://en.wikipedia.org/wiki/Irn-Bruhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/w/index.php?title=Tropicola&action=edithttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/China_Colahttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Cocktahttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Mercator_(retail)http://en.wikipedia.org/wiki/Madagascarhttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Kola_Realhttp://en.wikipedia.org/wiki/Big_Colahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Corsicahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bretagnehttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Inca_Kolahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Julmusthttp://en.wikipedia.org/wiki/Christmashttp://en.wikipedia.org/wiki/Scotlandhttp://en.wikipedia.org/wiki/Irn-Bruhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/w/index.php?title=Tropicola&action=edithttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/China_Colahttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Cocktahttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Mercator_(retail)http://en.wikipedia.org/wiki/Madagascar


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1.5 SWOT ANALYSIS

SWOT Analysis of Soft Drink Industry in relation to Coke

Strengths

Carbonated soft drink growth 10-15%

Estimated PCC to increase to 6-8 bottles

Weaknesses

Weak infrastructure (esp. Cooling)

Small retailers, less shelf space

Heavy excise duty (40%), recently havecome down a little

Cans have to be imported at high dutyrates.

Problems of empty bottles

Opportunities

Low PCC as compared to neighboringcountries

Growing rural market internecinecompetition

Rising disposable income

Changing consumer trends due tosatellite TV.

Threats

Political risks

Coke and Pepsi indulging in

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RESEARCH METHODOLOGY

2.1 OBJECTIVE OF THE STUDY

To deliver the message to the target audience that food tastes best when had with

Coca cola.

To carry forward the concept of Thanda being synonymous with a bottle of Coca-

Cola

To project the attitude of the brand in a very entertaining and engaging manner

To connect the brand with the youth of the country.

To spruce up its marketing campaign for the summer.

To have an edge over the competitor e.g. Pepsi and to increase the demand and

sales of Coca cola during the coming summer season.

The basic objective is to generate mass awareness in Indian market about Coca

cola and was basically done for brand recall

Using wit and humor the new campaign speaks the language of an empowered

generation.

The campaign encapsulates the new-found confidence of the Indian youth and

using wit and humor speaks the language of an empowered generation


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2.2 SCOPE OF THE STUDY

Our area of study is basically is studying the Indian Soft drink industry. Our

observation is highly focused on studying the Indian Soft drink industry scenario

in the Cola market in the 1990s and studying how Indian consumers have

responded to the entrance of the MNCs like Pepsi-Cola and Coke-Cola, 1990

onwards, keeping in mind their growth pattern and their respective market shares.

There has been a focused effort to study the various promotional schemes that

Coca -Cola India has to offer to its consumers and the effect of these schemes on

the consumer buying behavior has been studied. The various Sales Promotion

techniques that have been used by Coca-Cola have been discussed through the

project in different contexts.

An attempt has also been made to study the kind of Advertising Policies and

procedures that are being followed at the Coca-Cola Company.

2.3 RESEARCH METHODOLOGY

The work done in the field of advertising & Marketing in the Coca-Cola

Company is examined. The fundamental objective was to search for secondary

data or information from newspapers, libraries and make a survey of the

knowledgeable person in the subject to obtain further information.

This project is focused on studying Coca-Colas market share observing their

growth and seeking how much their market share is directly proportional to their

sales promotion and advertising expenses.

A questionnaire has been made and analyzed to see the impact of Coke brand on

consumers and their perceptions of Coca-Cola. Our area of emphasis would be to make a

study of Coke-Cola primarily in the Indian soft drink industry. A survey of the Indian

Soft Drink Industry has been done on the basis of secondary data and the effect of sales

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Conceptual Discussion

THE COCA COLA THANDE KA TADKA AD CAMPAIGN

Aamir Khan Adds More "Tadka" To Coca-Colas Summer Campaign

Campaign underlines the excellent taste compatibility of Coca-Cola with food

Part of Coca-Colas Thande Ka Tadka Campaign this summer, Aamir Khan is all

set to be seen in a new tourist avatar a first of its kind look

The latest Coca-Cola brand initiative is a class act powerful messaging

combined with rare wit and unmatched acting prowess, presented by the

Bollywood Super Star.

Ad. conceptualized by the acclaimed guru of Indian advertising Prasoon Joshi:

Directed by the talented Pradip Sarkar of Parineeta fame: and produced by

Apocalypso productions.

To hit airwaves across all leading channels on April 26 2006

New brand initiative to be supported by an Integrated Food Campaign including

a strong on the ground program.

Coca-Cola, worlds largest beverage company continues its trend of creating the most

powerful and appealing brand messaging for its consumers in India. The Coca-Cola

Thande ka Tadka campaign, earlier launched by countrys favorite Miss World and

Bollywood actor Aishwarya Rai, now takes a big leap forward with Aamir Khan. In the

latest brand initiative, Aamir makes a clever and funny appearance as a tourist who not

only underlines the message of How food tastes best when had with Coca-Cola, but

also reinforces the entire concept of Thanda being synonymous with a bottle of Coca-

Cola. The new brand campaign launches on all leading TV channels on 26th April 2006.

According to Vikas Gupta, VP-Marketing Coca-Cola India, "Thanda is synonymous with

Coca-Cola. It is also an established fact that food tastes best, when had with the worlds


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favorite soft drink. To blend and deliver all these messages to the consumer, the new

brand initiative utilizes Aamirs humour and acting skills. With the recipe now complete,

the initiative further enhances the impact of Coca-Colas brand campaign for the summer

- "Thande ka Tadka. The new brand initiative has been conceptualized by the acclaimed

advertising guru Prasoon Joshi and has been directed by the talented Pradip Sarkar of

Parineeta fame.

Story Board

The new Coca-Cola commercial features Aamir mistaken for a `Tourist entering a

restaurant and being shown with a special overpriced menu by the cunning manager

(trying to fool an unsuspecting tourist). But Aamir asks to be served with Thanda food.

The puzzled restaurant manager later on discovers that is actually being asked is - Thanda

(Coca-Cola) and food. The denouement is what will leave the audience pleasantly

surprised.

Aamirs make up man Jogendra G. Gupta needs a special mention for his superb

presentation of Aamirs tourist look.

Aishwarya Rai To Add " Thande Ka Tadka" To Coca-Cola

Coca-Cola Thande ka Tadka brand campaign encapsulates the new-found confidence

of the Indian youth.

Using wit and humor the new campaign speaks the language of an empowered

generation.

Launch of the new brand initiative, includes unleashing an all-new TV

commercial featuring Aishwarya Rai as the central protagonist.

The new ad has been conceptualized by the prolific ad veteran Prasoon Joshi of

McCann Erickson and brought to life by the talented direction of Abhijit

Chaudhuri of Black Magic Productions.

Coca-Cola Thande ka Tadka ads to be aired in different variants

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Campaign to go full steam ahead across all leading channels from 26th March

06 onwards.

Coca-Cola, is all set to sizzle consumers this summer as it unleashes a catchy new brand

campaign - Coca-Cola Thande Ka Tadka. Launch of the new brand initiative,

includes unleashing an all-new TV commercial featuring Aishwarya Rai as the central

protagonist. The campaign encapsulates the new-found confidence of the Indian youth

and using wit and humor speaks the language of an empowered generation. Coca-Cola

Thande Ka Tadka is a refreshing take on the current youth mindset of purposeful

action and a self empowered point of view.

The ad for the new campaign has been conceptualized by the prolific ad veteran PrasoonJoshi of McCann Erickson and brought to life by the talented direction of Abhijit

Chaudhuri of Black Magic Productions. The Coca-Cola Thande ka Tadka ads would hit

the TV screens in different variants. The entire campaign will go full steam ahead across

all leading TV channels from 26th March 06 onwards.

According to Mr. Vikas Gupta, Vice President Marketing, Coca-Cola India, The

youth of today is rearing to take on the world. They are smart, energetic, focused, and

confident enough to transform their aspirations into reality. Coca Colas Thande ka

Tadka campaign connects instantly with this evolved persona. The campaign ad features

Aishwarya in a totally new avatar. She uses emotions like wit and humor and encourages

us all to take control of ones life without being intimidated. The new Coca-Cola

Thande Ka Tadka series adds yet another dimension and is a natural progression from

the earlier campaigns that the company has run. With Thanda Matlab Coca-Cola, the

Brand celebrated pride in our national roots and the deep-rooted Indian-ness within all of

us.

According to Prasoon Joshi, Regional Creative Director. South Asia & South East

Asia, McCann Erickson, The sheer power of the Coca-Cola brand lies in its multi

dimensional appeal. Each new dimension when explored, gives a consumer yet another

chance to strengthen his or her emotional connect with the brand. Adding further

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Prasoon said The Coca-Cola Thande ka Tadka campaign projects the attitude of the

brand in a very entertaining and engaging manner. It also exploits the youth lingo which

helps the brand connect with the youth of the country.

ADVERTISEMENT CAMPAIGN SELECTED FOR THE PROJECT

Coca colas THANDE KA TADKA featuring Aamir Khan

DETAILS OF THE ADVERTISEMENT

The advertisement opens with Aamir Khan, who has been given the look and get up of a

Japanese tourist, entering a restaurant. The manager thinks that he can easily corn this

unsuspecting tourist and gives him a special overpriced menu. But Aamir refuses this and

instead asks for Thanda Food.

He is shown the menu card the rates go Rs.200 for samosa an so on he points for thanda

then samosa and thanda then pakoda but the manager says no sir no thanda, we serve

fresh food then Aamir goes in gets two cokes an food then makes the staff and manager

his point clear that he need coke and food (note:all this time he doesnt speak at all) then

after eating like hell he says in hardcore punjabi thande ka saath khana changa (with

coke food tastes gr8!!!!!!) the staff is surprised the waiter prompts sab japani toh hindi

bolta hai. Then Aamir says japani wapani nahi hoon mai, woh toh main

madhumakhiki chatte ki photo utaar raha taaa unhone meri utardi, ab mein tumhari

utaroongaa, doso ka samosaaaa, laoo bill laoooo !!!!!!!!! (I am not a japanese I was

taking a photo of honeycomb an they bit my face thats why I look like japanese...now I

will teach u a lesson .......Rs.200 for a samosa or what.........get me the bill)........

The manager is perplexed and only later on understands that his wise tourist is asking for

Thanda (Coca-Cola) and food. Coca-Cola with this ad campaign is seeking to send out

the message that food should be had along with Coca-Cola and it also re-emphasizes the

synonymous relation between Coca-Cola and Thanda

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PERSUASIVE TECHNIQUES USED TO ACHIEVE OBJECTIVES

Aamir Khan used as brand ambassador for the add campaign to connect the brand

with the youth of the country and to To carry forward the concept of Thanda

being synonymous with a bottle of Coca-Cola

Punchline Thande ke saath khana changa used to deliver the message of the

advertisement and also to develop a recall factor through this punchline.

The new brand initiative utilises Aamir's humour and acting skills to further

enhances the impact of Coca-Cola's brand campaign for the summer.

The creative content used to have the long lasting impact on the consumers mind.

BENEFIT SEGMENT FOR THE ADVERT

Youth of the country

A combination of all, influencer, decider, buyer and consumer.

Children/ kids who like to view humorous advertisements

Has everyone as its target audience, irrespective of sex, age, income, and so on

which succeeded by appealing to everybody

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FACTS ABOUT THE CUSTOMERS/TARGET AUDIENCE

Demographically: Almost everybody, irrespective of sex, age, income, and so on.

Though targeted at the youth, its appeal is nearly universal.

Psycho graphically: Children, Students, working people, people who stay at home and

have the desire to make their foos tastes great and have a desire to counter their thirst.

Behavioral: Frequent buyers or consumers and all those who regularly eat out and visit

food junctions. Also to the people who want to have something with their food even at

home.

Geographically: All the people around India, urban as well as rural population. Target

people living in very remote areas as well.

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BUYING BEHAVIOUR OF THE CONSUMER

1. What motivates him to buy

Desire to counter the thirst immediately

To make the taste of the food great with coca cola.

2. When does he buy Casual buying habits. Whenever thirsty or partying and

sometimes to make the food taste great. No regular pattern of buying the product.

3. Does he need any purchase facilitation information Not much information is

usually collected by the consumer except for the advertisements shown on the

television. These advertisements are mainly for brand recall and entertainment

and not much for the reason of information search. The consumers were only

active for information search when the dispute of pesticides being found in the

brand was there.

4. What is his level of involvement with purchase High involvement is there

since it is a matter of the health of the consumers and are very particular regarding

the pesticide content in their soft drink.

5. Does he buy the product rationally or emotionally or both Both

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PRODUCTION OF ADVERTISEMENT

The latest Coca-Cola brand initiative is a class act powerful messaging

combined with rare wit and unmatched acting prowess, presented by the

Bollywood Super Star- Aamir Khan

Ad. conceptualized by the acclaimed guru of Indian advertising Prasoon Joshi:

Directed by the talented Pradip Sarkar of Parineeta fame: and produced by

Apocalypso productions.

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DATA ANALYSIS

1. Out of the Coke or Pepsi Advertisements Which Companys Ad Campaigns

do you like better?

Liking of Coke or Pepsi Advertisemen

Cok

60%

Pepsi

40%

It can be seen clearly from the above graph that out of the total 25 respondents, 60%

of them like the advertisements of Coca cola i.e 15 out of 25 while the rest 40% i.e

10 out of 25 like the ad campaigns of Pepsi.

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2. Have you seen the Coca colas THANDE KA TADKA (The one featuring

Aamir khan as a Chinese visitor) television commercial?

Percentage of Resp onden ts seen the advertis

Yes

92%

No

8%

It can be seen from the above pie graph that out of the total of 25 respondents, majority of

the respondents have seen the coca colas THANDE KA TADKA advertisement

featuring Aamir Khan as a Japanese visitor. Only 85 i.e 2 respondents out of the 25 have

not seen the Advertisement.

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3. Do you think that this ad campaign is attractive enough to convert a Pepsi

consumer to a Coke consumer?

Ad Cam paign attractive to con vert a Pep si consum e

consumer

Yes, 16, 70

No, 7, 30

Yes

No

The above graph depicts that 70% of the total respondents feels that the THANDE KA

TADKA ad campaign is attractive enough to convert a Pepsi consumer to a coke

consumer while 7 out of 23(as 2 have not seen the advertisement) i.e. 30% does not find

the add attractive enough to convert a Pepsi consumer to a coke consumer.

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4. Rate the Creative content of this ad Campaign on the scale of 1 to 10 (10

being the most creative and 1 being the least creative)

R a t in g o f th e C r e a t iv e c o n t e n t o n t h e

1

2

3

4

5

6

7

8

9

1 0

0

1

0 0

2

7

2

5

4

2

0

2

4

6

8

1 0

1 2

1 2 3 4 5 6 7 8 9 1 0

R a n

No

ofRespo

ndents

R a n k

N o o f r e s p o n d

When asked the respondents about the creative content of the THANDE KA TADKA

advertisement, majority of the respondents i.e. 7 out of the total respondent have ranked

the creative content as 6 on the scale of 1-10, 10 being the most creative and 1 being the

least creative. 5 respondents have rate the creative content as 8, 4 of them have rated it 9

and 2 of them have rated it as 10 on such scale. One of the respondent has also rated it 2

on the scale. The above graph clearly shows that most of the respondents liked the

creative content of the advertisement and has therefore rated its content on the higher side

of the scale.

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5. Aamirs acting and humour skills were able to make a long lasting impact on

the consumers mind?

Aamir's ac ting able to ma ke a long lasting imp

consum er mind

Agre e, 18, 78

Disagr ee , 5, 22

Agree

Disagre

The above graph clearly depicts that out of the total no of the respondents, 78% of them

feels that Aamir Khans acting and humorous skills in the advertisement was able to

make a long lasting impact on the consumers mind while 5 respondents i.e. 22% of them

feels that he was not attractive enough to make a long lasting impact on the consumers

mind.

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6. How satisfied are you with the fact that this Ad Campaign will further

enhance the impact of Coca Colas brand image for this summer?

Ad campaign will further enhance the impact of

Coca cola's brand image for summer

2

11

8

2

00

2

4

6

8

10

12

Very

Satisfied

Quite

Satisfied

Neither

Satisfied Nor

Dissatisfied

Quite

Dissatisfied

Very

Dissatisfied

No

ofrespondents

No of

respondents

When respondents were asked about their satisfaction level regarding the fact that this Ad

campaign will further enhance the impact of Coca colas brand image for this summer, 2

of the respondents were very satisfied with the fact, maximum no of respondents i.e. 11

of them were Quite satisfied, 8 of them were of the view that they are neither satisfied nor

dissatisfied while 2 of them were quite dissatisfied with this fact. None of the respondent

was found to be very dissatisfied with the fact.

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7. Do you feel that Aamir Khan was able to deliver the message of the

advertisement to the best?

Aamir khan was able to deliver the message of the

Ad to the best

Yes, 18, 78%

No, 5, 22%

Yes

No

The above graph clearly depicts that 78% of the respondents i.e. 18 out of the 23

respondents feels that Aamir Khan was able to deliver the message of the Advertisement

to the best while 22% of them feels that he was not able to deliver the message of the

advertisement to the best. According to them some othe Brand ambassador would have

done this better. Apart from Aamir khan being the Brand Ambassador for this

advertisement, the other brand ambassadors they suggested were Vivek Oberoi, Virendra

Sehwag, Arshad Warsi, Sanjay Dutt, Saif Ali khan to name a few.

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8. Do you believe that the claims made through this advertisement (Food

tastes best when had with Coca Cola / Thande ke saath khana Changa)

are realistic enough to be believed?

0

2

4

6

8

10

No of

respondents

Claims made through the Ad are realistic enough

to be believed

Series1 8 6 9

Yes No Partially

It is clearly seen from the above graph that 9 respondents out of the total of 23 (2 have

not seen the advertisement) believe partially that the claims made through this

advertisement (Food tastes best when had with Coca cola/ Thande ke saath khana

changa) are realistic enough to be believed. 8 respondents believe that the claims are

realistic while 6 out of the 23 respondents believe that the claims are unrealistic.

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9. This ad campaign further emphasizes the synonymous relations between

Coca Cola and Thanda?

Ad Campaign further emphasizes synonomo

relations between Coca cola and Thanda

Agree, 18, 78

Disagree, 5

22%

AgreeDisagree

This Ad campaign further emphasizes the synonymous relations between Coca cola and

Thanda- 78% i.e. 18 out of 23 (2 of them has not seen the advertisement) agree with the

fact while 22% of them disagree with the fact i.e 5 respondents out of the total.

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10. How appealing is the tag Line THANDE KE SAATH KHANA CHANGA

for this ad campaign?

Rate on the scale of 1-5 (5 being very appealing and 1 being not being appealing)

1

3

2

3 3

6

4

7

5

4

0

2

4

6

8

No of

respondents

Appeal of the tag line for the Ad

Ratings 1 2 3 4 5

No of respondent 3 3 6 7 4

1 2 3 4 5

When the respondents were asked how appealing they find the tag line THANDE KE

SAATH KHANA CHANGA for this Ad campaign, most of the respondents (7 out of

the total) have rated it 4 on the scale of 1-5, 5 being very appealing and 1 being not very

appealing. 6 respondents have rated the appeal 3 on such scale, 3 of them have rated it 1

and 4 of the total of 23 respondents have rated it 5 on the scale of 1-5, 5 being very

appealing and 1 being not very appealing.

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11. Out of the two Campaigns of THANDE KA TADKA which one do you like

better?

Liking of two Ad campigns- featuring Aamir Kh

And Aishwarya Rai

Aamir Khan, 16,

70%

Aishwarya Rai,

7, 30%

Aamir KhanAishwarya Rai

When people were asked as to out of the two advertisement Campaigns of THANDE

KA TADKA which one they like better- the one featuring Aamir Khan or the one

featuring Aishwarya rai, most of the respondents i.e. 70% of them liked the ad campaign

done by Aamir khan while only 30% of the total respondents like the ad campaign

featuring Aishwarya Rai better.

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DEMOGRAPHICS OF THE RESPONDENT

12. SEX

percentage of respondents Male/Female

Male, 13, 52%

Female, 12, 4 8% Male

Female

Out of the total of 25 respondents, 52% of the respondents i.e 13 out of 25 of them were

male and the rest 48% respondents were female.

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13. Age Group

Ag e g r o u p o f R e s p o n

B elo w 1 8 Y e

4 %

1 8 - 2 5 Y e a

4 0 %

2 5 - 4 5 Y e a

4 4%

A b o v e 4 0 Y e

1 2 %B e lo w 1 8 Y e

1 8 - 2 5 Y e a r s

2 5 - 4 5 Y e a r s

A b o v e 4 0 Y e

The respondents selected for this research were of varied age groups, most of them were

in the age group of 25-45 years i.e. 11 out of the total of 25 were in this age group. 40%

comprises of the respondents belonging to the age group of 18-25 years. 4% of them were

below 18 years and the rest i.e 3 respondents (12% of the total) belong to age group of

above 40 years.

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14. Occupation of the respondent

Occupation of the Respondents

Student

36%

Service

36%

Business

20%

Others

8%

Student

Service

BusinessOthers

The respondents selected were mainly of the service class and students. 36% of each of

them taken. 20% of the respondents were businessmen. Others which comprises of 8% of

the respondents, mainly includes housewives.

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15. Which Media vehicle do you consult the most?

Media they Consult

News papers

27%

magazines5%

TV

35%

Radio

11%

All

22%News papers

magazines

TV

Radio

All

The above graph clearly depicts the media the respondents mainly consult. Some of the

respondents consult more than one media and some consult all the media options given to

them. The most common media vehicle consulted by most of them were news papers and

television.

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16. Which income group do you belong to?

Income group of the Responden

40%

0%0%12%

48%

Not Applicabl

Below 5,000

5,000-10,000

10,000-20,000

Above 20,000

Regarding the income group of the respondent, most of them (48% of the total

respondents i.e. 25) lies in the income group of above 20,000. 40% of the respondents

does not earn anything. None of the respondents were in the income group of 5,000-

10,000 and 12% of them belong to the income group of 10,000- 20,000.

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FINDINGS & RECOMMENDATIONS

FINDINGS

Mostly soft drink consumers like the Ad Campaigns of Coca cola better than

Pepsi.

Most of the people feels that this ad campaign is attractive enough to convert a

Pepsi consumer to a Coke consumer

Aamir Khan was able to deliver the message of the advertisement to the best

Out of the two Campaigns of THANDE KA TADKA, the ad featuring Aamirkhan is liked more than the one featuring Aishwarya Rai

The tag Line THANDE KE SAATH KHANA CHANGA is appropriate for the

advertisement.

This ad campaign further emphasizes the synonymous relations between Coca

Cola and Thanda

The claims made through this advertisement (Food tastes best when had with

Coca Cola / Thande ke saath khana Changa) are realistic enough to be

believed


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RECOMMENDATIONSRECOMMENDATIONS

Need for diversification it is important that Coke innovates constantly in its

appeal & packaging The reason being a certain section of the market finds the

original Coke little strong, so if a version of Coke is brought out which is a little

sweet it may catch on to the market.

Lastly it is important that the retailers price of Coke be controlled to a stable

level. It has been often seen that retailers charge a higher price than what is the

MRP of the product, if this can be controlled it is bound to increase the usage of

the product.

Increase of percapita usage in the market would inurn increase the rate of revenue

generated.


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QUESTIONNAIRE

I would request you to kindly assist us in this Research by sparing a little time to give us

your valuable feedback and suggestions through the Questionnaire below. Please do not

hesitate to inform us of any observation that you think may be relevant.

1. Out of the Coke or Pepsi Advertisements Which Companys Ad Campaigns do

you like better?

Coke

Pepsi

2. Have you seen the Coca colas THANDE KA TADKA (The one featuring

Aamir khan as a Chinese visitor) television commercial?

Yes

No

3. Do you think that this ad campaign is attractive enough to convert a Pepsi

consumer to a Coke consumer?

Yes

No

4. Rate the Creative content of this ad Campaign on the scale of 1 to 10 (10 being

the most creative and 1 being the least creative)


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5. Aamirs acting and humour skills were able to make a long lasting impact on the

consumers mind?

Agree

Disagree

6. How satisfied are you with the fact that this Ad Campaign will further enhance

the impact of Coca Colas brand image for this summer?

Very satisfied

Quite satisfied

Neither satisfied nor dissatisfied

Quite dissatisfied

Very dissatisfied

7. Do you feel that Aamir Khan was able to deliver the message of the advertisement

to the best?

Yes

No

If NO, please suggest a Brand Ambassador which you feel would have been the

best suited for this advertisement.


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16. Which income group do you belong to?

Amount (RS) MonthlyNot Applicable

Below 5000

5000-10,000

10,000-20,000

Above 20,000


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PROJECT TOOLS

Data in this project has been analyzed and interpreted with the help of:

1. Pie chart

2. Bar graph

BIBLIOGRAPHY

Books

Brand Power Paul Stobart

Consumer Behaviour J. Paul Peter

and Marketing Strategies

Marketing Concept Philip Kotter and Gary Armstrong

Magazines & Newspapers

Business Today 2004

Business World 2004

Economic Times 2004

Business Barons 2005

Websites

www.cocacola.com

www.financialexpress.com

www.businesstoday.com
http://www.businesstoday.com/http://www.businesstoday.com/

Coca Cola - JIMS Finalmunjal

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