Coca Cola (Rakesh)

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 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 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
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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 CocaCola 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 COCOCOLA, 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
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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
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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
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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 massmanufactured 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.
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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.
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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.
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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
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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. Nonalcoholic 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 noncola 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. NonCola 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.
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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 agrobased 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!
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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
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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
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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 12 th, 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
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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 CocaCola 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
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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.
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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 CocaCola, 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
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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 CocaCola 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.
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PRODUCTS OF COCA COLA
Carbonated Soft Drinks and Functional Beverages

Coca-Cola manufactures and distributes a range of carbonated soft
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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.
Some of Coca-Cola Beverage Brands:
Coca-Cola
Sprite
Thumps Up
Fanta
Maaza
Finley water
COMPETATORS OF COCA COLA:
Pepsi
Slice
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7up
Limca
Aquafina
Mountain Dew
Other beverages
Growth Drivers
Product and package innovation
Non-carbonated beverage and food expansion
Growing product availability through cold drink equipment
placement and 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.
27
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 balance
COCA-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 Development
28
COCA-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.
Equal Employment Opportunity and Diversity
29
At 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
30
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.
31
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.
32
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.
33
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.
34
Sources of Data
Important 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 collection
1. 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 websites
Type 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.
35
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.
.
Tools and Techniques of Data Collection
Questionnaire
36
Questionnaires 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
37
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 affair
4. It gives tips to competitors
How is Market share analysis conducted?
38
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 competitor
ANALYSIS AND INTEPRETATION
39
NAME 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:
40
1. Which brand of soft drinks do you purchase and sell the most in
your store?
BRAND
NO.
OF PERCENTAGE
RESPONDENTS
PEPSI
10%
COCACOLA
18
90%
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
41
2. Which brand of Coca-Cola do customers prefer the most?

BRAND
NO.
ORF PERCENTAGE
RESPONDENTS
COCA-COLA
10
SPRITE
35
LIMCA
10
42
THUMSUP
30
FANTA
MAAZA
10
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
43
3. Are you satisfied with the sales of Coca-Cola?
NO.
OF PERCENTAGE
RESPONDENTS
YES
18
90
10
NO
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
44
GRAPH SHOWING THE SATISFACTION LEVEL
45
4. Do you think advertisements, offers of Coca-Cola brands help in

increasing the demand of the products?
NO.
OF PERCENTAGE
RESPONDENTS
TOTALLY AGREE
40%
AGREE
30%
NEUTRAL
20%
DISAGREE
5%
TOTALLY
5%
DISAGREE
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
46
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
47
5. How many cases do you sell in a week?
48
NO.
OF PERCENTAGE
RESPONDENTS
LESS
THAN
25 13
65%
THAN
25 5
25%
THAN
50 2
10%
CASES
MORE
CASES
MORE
CASES
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
49
GRAPH SHOWING THE SALES WITH RESPECT TO CASES SOLD
6. Which package do customers prefer?

NO.
OF PERCENTAGE
RESPONDENTS
50
PET BOTTLES
30%
GLASS BOTTLES
14
70%
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
51
7. Compare the brand with respect to the following:

TASTE PRICE BRANDING NO.
OF PERCENTAGE
RESPONDENTS
PEPSI
10%
COCA-COLA
14
18
90%
52
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
53
8. Number of bottles present in the store

WARM CHILLED EMPTY NO.
OF PERCENTAGE
RESPONDENTS
PEPSI
Less
Less
More
10%
than20
COCA- Less
than 10
More
than 50
Less
18
90%
COLA
than 30
than10
than 10
54
90% of the respondents had more chilled bottles of COCACOLA 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
55
9. Which company do you think will provide the maximum after sales
service?
NO.
OF PERCENTAGE
RESPONDENTS
PEPSI
10%
COCA-COLA
18
90%
56
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
57
10. Which media is more effective in advertising Coca-Cola brands?

NO.
OF PERCENTAGE
RESPONDENTS
NEWSPAPER
35%
TELEVISION
45%
MAGAZINES
20%
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.
58
GRAPH SHOWING THE MEDIA WHICH IS MORE EFFECTIVE
59
11. The bill amount of PEPSI and COCA-COLA on a weekly basis?

LESS
PEPSI
MORE MORE NO.
THAN THAN
THAN
1000
1
1000
1
2000
10
COCA- 2
OF PERCENTAGE
RESPONDENTS
2
10%
18
90%
COLA
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.
60
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.
61
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.
62
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.
BIBLOGRAPHY
QUESTIONAIRE
NAME OF THE STORE:
ADDRESS OF THE STORE:
63
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
AGREE
AGREE
NEUTRAL
DISAGREE
TOTALLY
DISAGREE
64
5. How many cases do you sell in a week?

a. less than 25 cases
b. more than 25 cases
c. more than 50 cases
6. Which package do customers prefer?
a. Pet bottles
b. Glass bottles
7. Compare the products with respect to the following

PEPSI
TASTE
COCA-COLA
TASTE
65
PRICE
PRICE
BRANDING
BRANDING
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
66
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.com
BOOKS REFERRED:
KOTLER PHILIP, Marketing Management
REDDY AND APPANIAH, Marketing Management
67
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MARKET SHARE ANALYSIS

Statement of the problem

MARKET SHARE ANALYSIS

Scope of the study

Conclusion and suggestions

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

The soft-drink battleground has now turned towards new overseas

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

The fortune 500 majors have duly

acknowledged the potential and consumption of beverages, in India, in

MARKET SHARE ANALYSIS

While the per capita consumption of soft drinks in the United

Soft drink sales have great seasonal

fluctuations in India with sales peaking in summers and plummeting in

MARKET SHARE ANALYSIS

Additionally, most of the retailers sell a drink for

anywhere for Rs.12, thus making it expensive for the customers, as

Over the years Pepsi-Cola has gone through a series of Presidents

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

Time line of soft drinks industry

MARKET SHARE ANALYSIS

1898: "Pepsi-Cola" was invented by Caleb Bradham.

MARKET SHARE ANALYSIS

1919: The American Bottlers of Carbonated Beverages formed.

MARKET SHARE ANALYSIS

1965: Soft drinks in cans dispensed from vending machines.

INDIAN SCENARIO OF SOFT DRINKS INDUSTRY

MARKET SHARE ANALYSIS

Focus on food and agro-processing; only 25% of the investment

MARKET SHARE ANALYSIS

Boost the image of Indian products in foreign markets

MARKET SHARE ANALYSIS

A Brief History Of Giant

MARKET SHARE ANALYSIS

Under Candler and Woodruff

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

helped by the decision of the bottlers to subcontract to other companies in

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

World War II to the 1970s

MARKET SHARE ANALYSIS

1985 to the Present

New Coke original logo from 1985-1988.

In April 1985, The Coca-Cola Corporation launched a

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

PRODUCTS OF COCA COLA

Carbonated Soft Drinks and Functional Beverages

MARKET SHARE ANALYSIS

drinks and functional beverages. Many of the brands are trademarks of

Health and Wellbeing

MARKET SHARE ANALYSIS

MARKET SHARE ANALYSIS

These commitments not only meet all legal requirements and

Learning and Development

MARKET SHARE ANALYSIS

COCA-COLA employs quality people and develops them for

Incorporating Learning and Development into Functional