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COCA COLA
Submitted By:
SAKSHI AGARWAL
A7002216001
SPECILIZATION: (MARKETING)
LUCKNOW
DECLARATION
Title of project report IMPACT OF BRAND EXTENTION ON BRAND PERSNALITY
OF COCOCOLA understand what plagiarism is and am aware of the Universitys policy in
this regard
I declare that:-
1. The work submitted by me in partial fulfillment of the requirement for the award of degree
MBA (M&S) assessment in this Project is my own; It has not previously been presented for
another assessment.
2. I declare that this Project is my Original Work. Wherever work from other source has
been used, all debts(for words data, arguments and ideas) have been appropriately
acknowledged and referenced in accordance with the requirements of NTCC Regulations
and Guidelines.
3. I have not used work previously produced by another student or any other person to
submit it as my own .
4. I have not permitted, and will not permit, anybody to copy my work with the purpose of
passing it off as his or her own work.
5. The work conforms to the guidelines for layout, content and style as set out in the
Regulations and Guidelines.
A7002216001
MBA (M&S)
FACULTY CERTIFICATE
This project work has been done in partial fulfilment of the requirement for the award of the
degree of MASTER OF BUSINESS ADMINISTRATION from AMITY UNIVERSITY
UTTAR PRADESH, LUCKNOW CAMPUS.
Dr. R. P. GUPTA
Professor
Lucknow Campus
STUDENTS CERTIFICATE
Date.- 02/08/2017
ACKNOWLEDGEMENT
I would like to thank our project guide, Dr. R.P. GUPTA for consultative help
and constructive suggestion on the matter in this project. I would like to thank
my Industry guide AAKASH KUMAR JHA and my brother VATSAL
AGARWAL & parents who have helped me in making this project a successful
one.
SAKSHI AGARWAL
TABLE OF CONTENTS
Chapter I......................................................................................................6-39
1. Introduction....................................................................................................................6
2. Introduction of the report...............................................................................................7
3. Objectives.....................................................................................................................36
4. Strategy.........................................................................................................................36
5. Limitations...................................................................................................................39
Chapter II...................................................................................................40-49
1. Review of Literature
Chapter III.................................................................................................50-55
1. Company Profile
Chapter IV................................................................................................55
1.Research mythology
Chapter V...................................................................................................56-58
Chapter VI.................................................................................................59-63
1. Findings........................................................................................................................59
2. Conclusions and...........................................................................................................63
3. Recommendations........................................................................................................63
BIBLOGRAOHY............................................................. .............................64.
Annexure -1.......................................................................................................65
CHAPTER I
INTRODUCTION
Coca Cola Zero: introduced in 2005 within the low calories segment and its main target
are men, because they tend to link Diet and Light to women. It is intended to be the same
taste as the Coca Cola Classic, while Coca Cola Light/Diet Coke has a different formula. Is
sweetened with a blend of low-calorie sweeteners, while Diet Coke is sweetened with
aspartame
Coca-Cola Cherry, Diet Cherry and Zero Cherry: it was launched in 1985 and
was the third variation of the brand. Then, in 1986 thanks to a successful performance Diet
Cherry Coke was introduced and in 2007 was added Coca-Cola Cherry Zero
Coca-Cola Black Cherry Vanilla and Diet: it was launched in 2006 but due to low
sales it was then discontinued in 2007
Coca Cola with Lime: released in 2005 as a respond to the consumers request but it
hasnt been very successful in several countries where it was discontinued. It has limited
edition in many countries.
Caffeine-Free Coca-Cola, Diet and Zero: introduced in 1983 as a response to Pepsi
Free that was having notorious results. The diet version was the first extension of the Diet
Coke.
Vanilla Coke: released in 2002 to compete with Pepsi Vanilla but it didnt have a good
performance. In 21111007, it was re-launched in the US and in the UK in 2013, where it was
1supposed to be a limited edition but thanks to a better sales behaviour it stood as a regular
product.
Coca Cola Life: Launched in 2013 in Argentina as a pilot test, has 108 calories per bottle
which is less than the half of calories of a Classic Coke, using Stevia as a sugar substitute.
This innovative product claims to be green and natural gas sold in a recyclable bottle that is
made from 30% plant-based materials
Diet / Light Pepsi: Introduced in 1964 to attack the current competitor Tab produced by
The Coca Cola Company that was an innovative Cola in the Low Calories segment.
Nowadays it is one of the main products of the Pepsi Portfolio.
Pepsi Next: launched in 2013 with 30% less sugar than regular Pepsi and no artificial
sweeteners. It is especially created for people who do not like Diet Pepsis taste.
Pepsi Wild Cherry: Introduced in 1988 in order to compete against Cherry Coke that was
developed two years earlier.
Pepsi Free: Developed in 1982 and it is a Caffeine-Free that is today known as Caffeine-
Free Pepsi and Caffeine-Free Diet Pepsi.
Pepsi Max: is a low-calorie and sugar-free product and contains more caffeine than Diet
Pepsi.
Pepsi Lime: Introduced in 2005 with lime flavour added to the regular Pepsi
Pepsi Raw/Natural: Released in 2008 and contains naturally sourced ingredients with no
artificial flavouring, colourings, preservatives and sweeteners. In countries like Mexico and
United States is distributed as Pepsi Natural so Pepsi had the idea of develop a natural
product that is now improved by Coca Cola Life.
Pepsi Vanilla: Released in Canada and the U.S. in 2003 in order to attack Vanilla Coke.
Today this product is no longer available but Diet Pepsi Vanilla keeps standing in the market.
Cherry Vanilla Pepsi: was a re-launch of the Vanilla Pepsi in 2010 with the addition of
natural cherry flavour.
Some Limited Editions: Pepsi Mojito, Tropical Chill and Pepsi Strawberry Burst.
Pepsi AM: Launched in 1989 and it had more caffeine than a regular Pepsi, was meant to
be a morning drink but it was discontinued in 1990.
BRAND PERSONALITY
The act of designing the companies in a certain and occupy the distant place in the customer's
mind as the brand product has to personalise and click to the mind of customers as they can
reach well to the extent in the mind of customers with the perceived trait. In other words,
brand personality is a framework that helps the organisations or a company, and that shapes
the way people's thinking about the product and with positive actions that benefit the firm.
It is more important for a company to specify and creates the positive brand image with the
determination to gave the quality product to the consumers and bring the positive image
through the brand personality.
Brand personality supports the identification of the consumer with his or her brand and thus
increases the personal meaning of a brand for an individual.The individuals pe rceived the
brands having the personalities is a part of self-concept actualizing and summarising the
brand perception with their own thought process and re-affirming the own self-concept by
their feelings.
This is the originally framed Coca-Cola company drawn graphic by artists presented on July
12, 1944, to Charles Howard Candler on the occasion of Coca Colas 1 Billionth Gallon of
coca Cola Syrup.
Prior researches on Brand personality have shown that consumers develops relationships with
brands and often the attribute of human emotions, traits and intentions to human entities
inanimate product. Coca-Cola and Pepsi are two leading soft-drink brands in India occupying
95% of the soft drink market. With low, functional benefits of soft drinks and no
differentiation in taste, colour or price of the two brands, marketers have to cash in on the
self-expressive value of their product.
Being at time customers find it weird to look that they are in a relationship with the brand and
it reflects their trait. They find that it looks good to take the intentions for the same product.
My research says they are happier with the brand that compliments their personality. Higher
the value of the brand higher the consumer gauge the brands attractiveness. In addition, this
leads the positive word of mouth. Consumers often buy products that suit them and which
pleases the personality to bring out the happiness. They enhance their self-image and
celebrity endorsement arise this fact by increasing the demand of the Brand or product. It is
important for marketers to convey that it is impactful and its taste reflects the brand as per
product serves a same pinch of quality with different product size. It will go and reflect on its
users.
They specify their chosen product at the loyal value in a different situation and taste to work
for them. There are many reasons those consumers specifies that one brand every time they
consumed when they need to be satisfied. It can be specific and much more lucid when these
things appear in our research. The questionnaire is set to rotate in this topic of the use of
coca cola products. However, consumer may choose Brand with the differentiation. It is
crucial for a researcher and a marketer to find the consumers image of the brand. The
effective market plan is ready to develop based on the collective notions of the consumer
towards the brand and its personality.
Measuring the personality of Coca cola Brand in the survey questionnaire is suitably fit for
the research regime, it is helpful for the coca cola company to accomplish their goals with the
research obligations, and it suggests specifying the plan according to the situation.
OBJECTIVES, STRATGY AND TACTICS
Decision making is a key aspect to any business. To pick the best decision for any
situation you would need to know what your goal is, your reason, objectives, strategies and
tactics. Objectives, strategies, and tactics are crucial to a businesss success. The main
difference between those three terms are that objectives are medium-long term targets,
strategies are long term objectives, and tactics are short term objectives.
Objectives give a sense of direction, unity, and purpose. They play a big role in forming
the foundation for companies in the decision making process. Objectives can be
communicated through mission statements.
Strategies and tactics both refer to a plan or scheme but strategies are long-term plans
that will have significant consequences while tactics are short term and may be less
significant in comparison to strategies.
The main objectives for the Coca-Cola Company are to be globally known as a business that
conducts business responsibility and ethically and to accelerate sustainable growth to operate
in tomorrow's world. By having these objectives, it forms the foundation for companies in the
decision making process.
MISSION
VISION
People: Be a great place to work where people are inspired to be the best they can be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
I thought that the vision statement points were more in depth and detail in comparison to their
mission statement points when it should've been the other way around. The mission statement
was more abstract and broad whereas the vision statement was more clear and direct. Both
statements somewhat communicated what their goal is for the future and where the company
is at now and I thought that both statements together did portray what the company was
trying to achieve.
More over we take every step to automate the business in few steps towards the Growth.
Winning culture of Coca Cola defines what it meant for attitude and behaviour that will be
required for Coca Cola to make their vision a reality.
Coca Cola values serve as a compass for actions and describe how Coca Cola behave
in the world.
Smart Work
Act with urgency
Remain responsive to change
Have the courage to change course when needed
Remain constructively discontent
Work efficiently
Be the Brand
Inspire creativity, passion, optimism and fun
LIMITATIONS
To investigate the predicting role of extension naming the strategy and category which
is fit for the transfer of the brand personality of the parent brand to its extension due
to its role of Brand personality.
the effective interaction and its selective effect of various combinations of the two
predictors when determining brand personality transfer are also explored and
extended the process of the Impact reflect on the consumer's behaviour due to its
brand personality.
CHAPTER II
LITERATURE REVIEW
John Pemberton addicted to morphine began a quest to find a substitute for the problematic
drug. The prototype coca cola recipe formulated at Pemberton eagle drug and chemical
house, a Drugstore in Columbus, Georgia, originally at a coca wine.
In 1885, Pemberton registered his French wine coca nerve tonic.
in 1886, When Atlanta and Fulton's country passed prohibition legislation, Pemberton
responded by developing coca-cola a non-alcoholic version of coca-cola wine. The first sales
were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a
patent medicine for five cents a glass at soda fountains, which were popular in the United
States at the time due to the belief that carbonated water was good for the health. Pemberton
claimed Coca-Cola cured many diseases, including morphine addiction, indigestion, nerve
disorders, headaches, and impotence. Pemberton ran the first advertisement for the beverage
on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola sold by three separate businesses were on the
market. A co-partnership had been formed on January 14, 1888, between Pemberton and four
Atlanta businesspersons: J.C. Mayfield, A.O. Murphey, C.O. Mullahy, and E.H. Bloodworth.
Not codified by any signed document, a verbal statement given by Asa Candler years later
asserted under testimony that he had acquired a stake in Pemberton's company as early as
1887. John Pemberton declared that the name "Coca-Cola" belonged to his son, Charley, but
the other two manufacturers could continue to use the formula.
Charley Pemberton's record of control over the "Coca-Cola" name was the underlying factor
that allowed for him to participate as a major shareholder in the March 1888 Coca-Cola
Company incorporation filing made in his father's place.[19] Charley's exclusive control over
the "Coca Cola" name became a continual thorn in Asa Candler's side. Candler's oldest son,
Charles Howard Candler, authored a book in 1950 published by Emory University. In this
definitive biography about his father, Candler specifically states- on April 14, 1888, the
young druggist [Asa Griggs Candler] purchased a one-third interest in the formula of an
almost completely unknown proprietary elixir known as Coca-Cola.
The deal was actually between John Pemberton's son Charley and Walker, Candler & Co.
with John Pemberton acting as co-signer for his son. For $50 down and $500 in 30 days,
Walker, Candler & Co. obtained all of the one-third interest in the Coca-Cola Company that
Charley held, all while Charley still held on to the name. After the April 14 deal, on April 17,
1888, Candler acquired one-half of the Walker/Dozier interest shares for an additional $750.
THE ORIGIN OF BOTTLINGS
The bottling of coca-cola was firstly started in Vicksburg, Mississippi, at the Biedenharn
Candy Company in 1891. The proprietor of the bottling works was Joseph A. Biedenharn.
The original bottles were Biedenharn bottles, very different from the much later hobble-skirt
design of 1915 now so familiar.
It was then a few years later that two entrepreneurs from Chattanooga, Tennessee, namely
Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea of bottling and were so
persuasive that Candler signed a contract giving them control of the procedure for only one
dollar.
Candler never collected his dollar, but in 1899, Chattanooga became the site of the first Coca-
Cola bottling company. Candler remained very content just selling his company's syrup.
The loosely termed contract proved to be problematic for The Coca-Cola Company for
decades to come. Legal matters were not helped by the decision of the bottlers to subcontract
to other companies, effectively becoming parent bottlers. This contract specified that bottles
would be sold at 5 each and had no fixed duration, leading to the fixed price of Coca-Cola
from 1886 to 1959.
The effect of Advertising made Coca-Cola more specific about the product and advertising
product with its extension. The use of extension played a major role with benefits of the
product sampling. A different situation occurs with the same amount of vision due to its
bottling full packaged and gets the point of view from the customer that how much they like
the product on sale by the mission on product extension that reveals about the brand
personality.
What do consumers like about the product?
They know much about the product or not?
If they have the product, how they are going to use the product?
Had they read about the product ingredient?
These feedbacks can be used by the retailer and/or in any workshop, wholesaler etc.
Which/when/How/what/why store can give you goods and services with the maximum
quality product.
ORIGINAL INGREDIENTS
Before Santa Claus, Coca-Cola relied on images of smartly dressed young women to sell its
beverages. Coca-Cola's first such advertisement appeared in 1895, featuring the young
Bostonian actress Hilda Clark as its spokeswoman.
1941 saw the first use of the nickname "Coke" as an official trademark for the product, with a
series of advertisements informing consumers that "Coke means Coca-Cola".
In 1971 a song from a Coca-Cola commercial called "I'd Like to Teach the World to Sing",
produced by Billy Davis, became a hit single.
The typeface You 2 that was created for the "Share a Coke" campaign.
Coca-Cola has gone through a number of different advertising slogans in its long history,
including "The pause that refreshes", "I'd like to buy the world a Coke", and "Coke is it".
In Australia in 2011, Coca-Cola began the "Share a Coke" campaign, where the Coca-Cola
logo was placed with a new look but it is replaced with the first name. Coca-Cola used the
150 most popular names in Australia to print on the bottles. The campaign paired with a
website page, Facebook page, and an online "share a virtual Coke". The same campaign
introduced to Coca-Cola, Diet Coke & Coke Zero bottles and cans in the UK in 2013.
Coca-Cola has also advertised its product use to be consumed just as a breakfast beverage,
instead of coffee or tea for the morning coffee.
In 1985, The Coca-Cola Company, amid much publicity, changed its formula. The theory has
been advanced that New Coke, as the reformulated drink came to be known, was invented
specifically in response to the Pepsi Challenge. However, a consumer backlash led to Coca-
Cola quickly reintroducing the original formula as not Coke before 1985, but to Coca-Cola
"Classic".
According to Beverage Digest's 2008 report on carbonated soft drinks, PepsiCo's U.S. market
share is 30.8 percent, while The Coca-Cola Company's is 42.7 percent. Coca-Cola outsells
Pepsi in most parts of the U.S., notable exceptions being central Appalachia, North Dakota,
and Utah. In the city of Buffalo, New York, Pepsi outsells Coca-Cola by a two-to-one margin.
Overall, Coca-Cola continues to outsell Pepsi in almost all areas of the world. However,
exceptions include Oman; India; Saudi Arabia; Pakistan (Pepsi has been a dominant sponsor
of the Pakistan cricket team since the 1990s); the Dominican Republic; Guatemala; the
Canadian provinces of Quebec, Newfoundland and Labrador, Nova Scotia, and Prince
Edward Island; and Northern Ontario.
Pepsi had long been the drink of French-Canadians, and it continues to hold its dominance by
relying on local Qubcois celebrities (especially Claude Meunier, of La Petite Vie fame) to
sell its product. PepsiCo introduced the Quebec slogan "here, it's Pepsi" in response to Coca-
Cola ads proclaiming "Around the world, it's Coke".
As of 2012, Pepsi is the third most popular carbonated drink in India, with a 15% market
share, behind Sprite and Thums Up. In comparison, Coca-Cola is the fourth most popular
carbonated drink, occupying a mere 8.8% of the Indian market share. By most accounts,
Coca-Cola was India's leading soft drink until 1977, when it left India because of the new
foreign exchange laws which mandated majority shareholding in companies to be held by
Indian shareholders. The Coca-Cola Company was unwilling to dilute its stake in its Indian
unit as required by the Foreign Exchange Regulation Act (FERA), thus sharing its formula
with an entity in which it did not have majority shareholding. In 1988, PepsiCo gained entry
to India by creating a joint venture with the Punjab government-owned Punjab Agro
Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold
Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its
partners and ended the joint venture in 1994. In 1993, The Coca-Cola Company returned in
pursuance of India's Liberalization policy.
In Russia, Pepsi initially had a larger market share than Coke, but it was undercut once the
Cold War ended. In 1972, PepsiCo struck a barter agreement with the then government of the
Soviet Union, in which PepsiCo was granted exportation and Western marketing rights to
Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola. This
exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U.S.S.R.
Reminiscent of the way that Coca-Cola became a cultural icon and its global spread spawned
words like "coca colonization", Pepsi-Cola and its relation to the Soviet system turned it into
an icon. In the early 1990s, the term "Pepsi-stroika" began appearing as a pun on
"perestroika", the reform policy of the Soviet Union under Mikhail Gorbachev. Critics
viewed the policy as an attempt to usher in Western products in deals there with the old elites.
Pepsi, as one of the first American products in the Soviet Union, became a symbol of that
relationship and the Soviet policy. This was reflected in Russian author Victor Pelevin's book
"Generation P".
In 1989, Billy Joel mentioned the rivalry between the two companies in the song "We Didn't
Start The Fire". The line "Rock & Roller Cola Wars" refers to Pepsi and Coke's usage of
various musicians in advertising campaigns. Coke used Paula Abdul, while Pepsi used
Michael Jackson. Both companies then competed to get other musicians to advertise its
beverages.
In 1992, following the dissolution of the Soviet Union, Coca-Cola was introduced to the
Russian market. As it came to be associated with the new system, and Pepsi to the old, Coca-
Cola rapidly captured a significant market share that might otherwise have required years to
achieve. By July 2005, Coca-Cola enjoyed a market share of 19.4 percent, followed by Pepsi
with 13 percent.
Pepsi did not sell soft drinks in Israel until 1991. Many Israelis and some American Jewish
organizations attributed Pepsi's previous reluctance to do battle to the Arab boycott. Pepsi,
which has a large and lucrative business in the Arab world, denied that, saying economic,
rather than political, reasons kept it out of Israel.
Coca Cola Products in India are: Coke, Diet Coke, Thums Up, sprite, Limca, Maaza, Fanta,
Gorgia(Coffee), Kinley (drinking water).
And PepsiCo products are: Pepsi, Diet Pepsi, 7 Up, Miranda, Mountain Dew, Tropicana
juices, Lays, Cheetos & Ruffles(snacks), Quaker Oats, Aquafina(drinking water).
Both brand uses advertising of their own brand with the use of brand extension impacted
brand personality. They Promote their product :
Coca Cola promote it through the Brand location Strategy- The Two Indias i.e. India A:
Life Ho To Aaisi, India B:Thanda matlab Coca Cola and with small bottle schemes.
Whereas PepsiCo balances two influences in the minds of the customers You are Cool the
way you are, Dont try to be any different. PepsiCo was positioned as the new cool youth
Icon, nothing official about it, Yeh Dil Maange More, Mera Number Kab Aayega?,
Yeh pyaas hai badi, Youngistan, and Change the game.
CHAPTER III
COMPANY PROFILE
New Coke / Coca-Cola II (19852002) - A short-lived formula change, remained after the
original formula returned and was rebranded later as Coca-Cola II.
Coca-Cola with Lemon (200105) - Coca-Cola with a Lemon flavour. Available in: Australia,
American Samoa, Austria, Belgium, Brazil, China, Denmark, Federation of Bosnia and
Herzegovina, Finland, France, Germany, Hong Kong, Iceland, Korea, Luxembourg, Macau,
Malaysia, Mongolia, Netherlands, New Caledonia, New Zealand, Reunion, Singapore, Spain,
Switzerland, Taiwan, Tunisia, United Kingdom, United States, and West Bank-Gaza.
Coca-Cola Vanilla (200205; 2007 to present)- Coca-Cola with a Vanilla flavour. Available
in: Austria, Australia, China, Czech Republic, Finland, Germany, Hong Kong, New Zealand,
Malaysia, Slovakia, South-Africa, Sweden, Switzerland, United Kingdom, and the United
States. It was introduced again in June 2007 by popular demand.
Coca-Cola with Lime (2005present)- Coca-Cola with a Lime flavour. Available in Belgium,
Netherlands, Singapore, Canada, the United Kingdom, and the United States.
Coca-Cola Raspberry (2005)- Coca-Cola with a Raspberry flavour. It was only available in
New Zealand and currently available in the United States and the United Kingdom in Coca-
Cola Freestyle fountain since 2009.
Coca-Cola Black Cherry Vanilla (200607)- Coca-Cola with a combination of Black Cherry
and Vanilla flavour. It replaced and was replaced by Vanilla Coke in June 2007.
Coca-Cola Black (200608)- Coca-Cola with a rich coffee flavour, formula depends on the
country. Only available in the United States, France, Canada, Czech Republic, Bosnia and
Herzegovina, Bulgaria, and Lithuania
Coca-Cola Citra (2005present) Coca-Cola with a citrus flavour. Only available in Bosnia
and Herzegovina, New Zealand, and Japan.
Coca-Cola Orange (2007) Coca-Cola with an orange flavour. Was available in the United
Kingdom and Gibraltar for a limited time. In Germany, Austria, and Switzerland it is sold
under the label, Mezzo Mix. Currently available in Coca-Cola Freestyle fountain outlets in
the United States since 2009 and in the United Kingdom since 2014.
Coca-Cola Life (2013present)- A version of Coca-Cola with stevia and sugar as sweeteners
rather than just simply sugar.
In 1892, Candler set out to incorporate the second Company The Coca-Cola
Company, had the earliest record of the Company burned in 1910. The action was
claimed to have been made during a move to new corporation offices around the time.
STRENGHTS
Brand Equity Inter brand in 2011 awarded Coca cola with the highest brand equity
award. Coca cola with its vast global presence and unique brand identity is definitely one of
the costliest brands with the highest brand equity.
Company valuation One of the most valuable companies in the world, Coca cola is
valued around 79.2 billion dollars. This valuation includes the brand value, the numerous
factories and assets spread out across the world and the complete operations cost and profit of
Coca cola.
Vast global presence Coca cola is present in 200 countries across the world. Chances
are, any country that you go to, you will find coca cola present in that market. This vast
global presence of coca cola has also contributed to the building of the mammoth brand
name.
Largest market share There are only two Big competitors in the beverage segment
Pepsi and Coca cola. Out of these two, coca cola is the clear winner and hence has the largest
market share. Amongst all beverages, Coke, Thums up, Sprite, Diet coke, Fanta, Limca and
Maaza are the growth drivers for Coca Cola.
Fantastic marketing strategies Coca cola unlike Pepsi always tries to win peoples
heart. Where Pepsis target is continuously changing, and is targeted towards youngsters,
Coca cola targets people of all ages. The targeting is also done by celebrities who are well
liked for example Amitabh Bacchan, Sachin tendulkar, Aishwarya Rai, Aamir Khan etc
Customer Loyalty With such strong products, it is natural that Coca cola has a lot of
customer loyalty. The products mentioned above like Coca cola and Fanta have a huge fan
following. People will prefer these soft drinks over others. Because of the good taste of Coca
cola, finding substitutes becomes difficult for the customer.
Distribution network Coca cola has the largest distribution network because of the
demand in the market for its products. On the other hand, due to this successful distribution
network, Coca cola has been able to command such a high market presence.
WEAKNESSES
Competition with Pepsi Pepsi is a thorn in the flesh for Coca cola. Coca cola would
have been the clear market leader had it not been for Pepsi. The competition in these two
brands is immense and we do not think Pepsi will give up so easily.
Product Diversification is low Where Pepsi has made a smart move and diversified
into the snacks segment with products like Lays and Kurkure, Coca cola is missing from that
segment. The segment is also a good revenue driver for Pepsi and had Coca cola been present
in this segment, these products would have been an additional revenue driver for the
company.
Absence in health beverages If you watch the news, you would know that obesity is
a major problem-affecting people nowadays. The business environment is changing and
people are taking measures to ensure that they are not obese. Carbonated beverages are one of
the major reasons for fat intake and Coca cola is the largest manufacturer of carbonated
beverages. The inference is that the consumption of beverages in developed countries might
go down, as people will prefer a healthy alternative.
Water management Coca cola has faced flak in the past due to its water management
issues. Several groups have raised lawsuits in the name of Coca cola because of their vast
consumption of water even in water scarce regions. At the same time, people have also
blamed Coca cola for mixing pesticides in the water to clear contaminants. Thus, water
management needs to be better for Coca cola.
OPPORTUNITIES
Diversification Diversification in the health and food business will improve the
offerings of Coca cola to their customers. This will also ensure that they get better revenue
from existing customers by cross selling their products. The supply chain, which is
distributing their beverages, can also distribute these snacks thereby sharing the load of
Supply chain costs.
Developing nations Although developed nations have a high presence of Coca cola,
these countries are slowly moving towards healthy beverages. However developing countries
are still being introduced to the delight of carbonated drinks and soft drinks. Countries like
India which are developing and have a hot summer, find the consumption of cold drinks
almost doubled during summers. Thus, the higher consumption in developing environments
can be a good opportunity to capitalize for Coca cola.
Packaged drinking water With hygiene becoming a major factor in the consumption
of water, packaged drinking water has found its way into peoples mind. Coca cola has a
presence in the packed drinking water segment though Kinley. Although Kinleys expansion is
slow as of now, Kinley has a huge potential of expansion. Thus, Coca cola as a company
should focus on the expansion of Kinley as a brand and take it up to Bisleris level of trust.
Supply chain improvement Supply chain can be a major cost sinkhole with the
transportation costs always rising. Coca cola has a complete business based on transportation
and distribution. There will always be possible improvements in this area. Thus, Coca cola
should keep strict watch on its Supply chain and keep improving to bring the cost down.
Market the lesser selling products In the product portfolio of Coca cola, there are
several products which have not found acceptance in the market. Coca Cola needs to
concentrate on the marketing of these products as well. It is understood that Coca cola has
made several expenses to launch these products. Thus, the marketing and subsequent rise of
sale of these products will help revenue of Coca cola.
THREATS
Raw material sourcing Water is the only threat to Coca cola. The weakness of Coca
cola was the suspected use of pesticides or vast consumption of water. However, the threat
here is that water scarcity is on the rise. With the climate changing, and regions of various
countries facing scarcity of water, eventually someone might raise fingers on beverage
companies. Thus, Water sourcing is an axe, which can fall anytime on the head of Coca cola.
If water is limited or rationed, Coca cola can experience a major downfall in their revenue
and capacity of distribution. The same can affect its archrival Pepsi as well.
Indirect competitors Coffee chains like Starbucks, Caf coffee day, Costa coffee are
on the rise. These chains offer a healthy competition to Coca colas carbonated drinks. They
might not be a big competition for Coke, but they do give a dent to its beverage market..
CHAPTER IV
RESEARCH METHODOLOGY
These objective specify that at what mean they use Coke brand. There are five dimensions,
which is working for the identification for the brand personality. It is effective for the
company when you use survey- the method of collecting the data, with that report we can
observe the consumers perception of brand and we can execute our plan for the enhancement
of the new target market in association with Coca Cola product. Either they like or dislike,
they used to keep conveying their own personality with their own product size and shape.
You can survey for the next report that is in how many times a week they purchase Coke.
This survey report varied many times. However, the five dimensions can measure brand
personality, on the top of this we can use the brand extension for the brand personality of
Coke, and PepsiCo with both the feet i.e. line as well as category extension too.
CHAPTER V
DATA ANALYSIS & INTERPRETATION
Researchers most commonly use Akers scale for measuring the brand personality of a
corporation or a company, while some researchers use their own scale for measuring the
brand personality. Here I prefer to use the scale as per the five dimensions of brand
personality i.e. Sincerity, competence, excitement, sophistication and ruggedness. This
methodology has been used in the case study and surveyed report had submitted for the
verification.
The report of the respondent here shown below:
The following table indicates the demographics of the Sample. It denotes the age
specification and if employed than sample of their monthly Investment in the brand product
using the brand personality with obeying attitude. There are much more things here defines
the impact of brand extension on brand personality of coca cola.
Purpose The purpose of this paper is to investigate the predicting roles of extension
naming strategies and categorical fit on the transfer of brand personality from a parent brand
to its extension brand. Extension naming strategies include direct and indirect naming, while
the categorical fit is the similarity between an extended product and its parent brand's
cognitive category. Further, the interaction effect and the relative effectiveness of various
combinations of the two predictors when determining brand personality transfer are also
explored.
Findings The findings show that consumers perceive higher brand personality transfer
when a direct naming strategy is applied or when the parent brand extends to a high perceived
fit product. The former is the dominant predictor of brand personality transfer. There also
exists an interaction effect between extension naming strategies and categorical fit.
Specifically, consumers perceive the highest brand personality transfer when a direct naming
strategy is applied for a high fit extended product. Moreover, the use of a direct naming
strategy for an extended product with a low categorical fit still leads to a higher degree of
parent brand personality than both the other cases in which an indirect naming strategy is
applied for either high or low fit extended products. Furthermore, irrespective of the degree
of categorical fit, the transfer of brand personality is low when an indirect naming strategy is
applied.
CHAPTER VI
FINDINGS
Brand personality dimension that is developed by Aaker major points to scale the brand
personality i.e. on five factors and each factor is represented by graph which is shown below
at the measure point of view.
Factor ranking depends upon the analysis subjected to the customer point of view and
measurement.
Sincerity
excitement
competence Pepsi
Coca Cola
sophistication
ruggedness
0 1 2 3 4 5 6 7
On the sincerity and competence Coca Cola ranks higher than that of Pepsi. As Pepsi is more
rugged than that of Coca Cola and both of them are as same in the desk of Sophistication and
excitement.
Factor Comparison
1. Sincerity
There are four facets measured under Sincerity i.e. cheerfulness, wholesomeness, Down-to-
earth and Honesty. Coca Cola is measured as the most honest brand with respect to Pepsi.
Differentiation between these two defines the honesty of the brand as the facet under
Sophistication implies that Coca cola is most honest brand then Pepsi. True to the
wholesomeness both the brands leads to the healthy choice under these measurement of brand
personality.
25
20
15
Pepsi
Coca cola
10
0
Down-to-earth Honest Wholesome Cheerful
2. Excitement
The Facets Under excitement measure is Daringness, Spirited, Imaginative and Up to date. In
this measurement of the facets of Excitement, imaginativeness scores Pepsi is less than Coca
cola.
18
16
14
12
10
Pepsi
8 Coca Cola
0
Daring Spirited Imaginative Up-to-date
3. Competence
Coca Cola Leads the Competence factor in all the facets which are Reliable, Intelligent and
successful. In front of Coca Cola is highly Reliable and Successful then Pepsi.
20
19.5
19
18.5
18
Pepsi
17.5
Coca Cola
17
16.5
16
15.5
15
Reliable Intelligent successful
4. Sophistication
The facets studied under sophistication are Upper class and Charming. As Coca-Cola
considered upper class then Pepsi and Pepsi is considered as more charming then the brand
Coca Cola. None the less, both the brands are much more sophisticated then each other.
15.5
15
14.5
Pepsi
Coca Cola
14
13.5
13
Upper Class Charming
5. Ruggedness
The facets under ruggedness were Outdoorsy and Tough. Pepsi scores more than Coca cola in
Outdoorsy where as Coca considered as more tough than The brand Pepsi. However, it is note
down factor that both the brands seems or considered less tough than any other brand.
16
14
12
10
Pepsi
8 Coca Cola
0
Outdoorsy Tough
SUMMARY
The objective of this study was to determine the brand personality of Coca-Cola and Pepsi.
1. Sincerity- This factor indicates that the brand is considered to be an honest and real
brand. The consumers trust the brand to provide them with standard quality products.
Sincerity of a brand implies commitment from the brand to its consumers. This factor plays a
huge role in creating reciprocal committed (loyal) relationships between the brand and its
user.
2. Competence- This factor indicates that the consumers think of the brand as an expert of
that field. Competence is connected with technical know-how, reliability and market success.
Consumers tend to look for deeper meaning and purpose of products made by competent
brands
3. Excitement- This factor indicates that the consumer which is being untold or being
perceive the brand personality i.e. more important for the brand is must tend to look towards
their own brand personality.
4. Sophistication- It enables the brand expectation of being the brand personality, which
indicates the softness the consumer avails the most sophistication by the brand Coca Cola.
5. Ruggedness- Ruggedness shows that the product is misjudged or used for the finable
amount of rough product that cannot be suggested by the Loyal customer. It is more
identifiable when they look towards the product and its size with the remarkable pricing.
CONCLUSION
Results have shown that consumers consider Coca-Cola to be a Sincere and Competent brand
while Brand Pepsi considered a Cheerful (young and trendy) brand. Coca-Cola has the image
of an intelligent and imaginative marketer while Pepsi does not have such a marked image for
its young consumers. Consumers consider both the brands equally successful. Also, both the
beverages score equally on the Excitement and Sophistication factors. Overall, the results of
this study suggest that Coca-Cola has a well-defined brand personality while the same cannot
be said for Pepsi.
RECOMMENDATION
Brand Personality has become a keenly researched topic among marketers and researchers.
This is not only because it makes the product attractive for new customers but also because it
helps retain the existing customers by engaging them in loyal relationships with the brand.
Thus, understanding the customers views towards a brand is the way to go for creating a
strong brand. Awareness of brand personality enables marketers to design advertisement
campaigns around the generic views towards the brand. According to the results of this study,
consumers do not have an apparent view of the personality of Pepsi and thus, marketers can
promote a more persuasive personality trait in the Indian market.
Since this study involved a sample between the age group of 18 to 25 years, the views
towards the brands pertain to the respective population. Further research can be done to
assess the brands personality for a different age group that will aid in expanding the
consumer reach.
This study only addressed the personality opinions of users of the brand. Interesting results
can be found if comparisons are made between personality opinions of users vs. non-users of
the brands. The difference will be the gap to be covered by the brand to convert non-users
into users. Also, future research on relationship between brand personality and brand loyalty
should be undertaken to gauge the tangible benefits of the intangible personality dimensions.
BIBLOGRAPHY
https://www.deepdyve.com/lp/emerald-publishing/brand-extension-using-parent-
brand-personality-as-leverage-gtQBJwmhjR
https://www.studyblue.com/notes/note/n/exam-1/deck/15729449
https://www.researchgate.net/profile/Angelina_Le/publication/235251833_Brand_exte
nsion_Using_parent_brand_personality_as_leverage/links/54771a1c0cf2778985b0a2ea
.pdf?origin=publication_detail
ANNEXURE
Annexure I
AMITY BUSINESS SCHOOL, LUCKNOW
7. Address of the company where student is posted: DLF CYBER CITY SEZ,
BUILDING 14, 4th FLOOR, TOWER & B, DLF CYBER CITY, PHASE-3,
GURUGRAM
QUESTIONNAIRE
3. Ethnicity
o Asian
o White( British)
o White (other)
o Mixed
o Black
4. What is your occupation?
o Student
o Unemployed
o Self employed
o Retired
o Full time Job
o Full time parent
o Part time job
o Job seekers