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ACKNOWLEDGEMENTS
I wish to express my deep sense of gratitude to Prof. R.K. MISHRA, director Institute
of Public Enterprise, Hyderabad for permitting me to do the project.
With immense pleasure, I would like to express my sincere thanks to respondents for
providing necessary information to complete my project, without whom it would have
been impossible to do my project.
Ch.Pad
ma
CONTENTS
2
Serial no. Particulars Page nos.
1. Chapter I:
Introduction 5-8
Need for study 9
Scope of study 10
Objectives 10
2. Chapter II:
Literature review 11-12
3. Chapter III:
Conceptual model 13-15
4. Chapter IV:
Methodology 16-18
Hypothesis 19
5. Chapter V:
Analysis 20-23
6. Chapter VI:
Findings 24
Suggestions 24
Limitations 25
Conclusion 25
7. Chapter VII:
References 26
8. Chapter VIII:
Appendix 27
LIST OF TABLES
3
Sl no. Particulars Page no.
1. Table no.1 (hypothesis) 19
2. Table no.2 (reliability of perception) 20
3. Table no.3 (reliability of brand ambassador) 21
4. Table no.4 (reliability of pesticides) 21
5. Table no.5 (regression) 22
6. Table no.6 (coefficient) 22
7. Table no.7 (correlation) 23
8. Table no.8 (correlation) 23
CHAPTER I
INTRODUCTION:
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to other brands having the same resources. The reason for the brands not to do well is
probably the consumer perception. Companies spend considerable amount for
creating positive perception among consumer.
People engaged in branding seek to develop or align the expectations behind the
brand experience, creating the impression that a brand associated with a product or
service has certain qualities or characteristics that make it special or unique. A brand
is therefore one of the most valuable elements in an advertising theme, as it
demonstrates what the brand owner is able to offer in the marketplace.
Brand Crisis:
When there is negative perception among consumer it is called brand crisis which is
focused on the study. Core Brand defines a brand crisis when “Familiarity” grows and
“Favorability” declines significantly and quickly. It is a situation when a particular
brand gets negative publicity through different Medias, due to which preference for
buying the product declines. Brand crises or false brand propositions can do severe
damage to brands. The damaging effects of brand crises may change from time to
time and so are not uniform in nature. Brand crisis can take place through different
factors like legal issues, quality issue, patent issue, etc. It is very important for any
company to avoid brand crisis or should be proactive to take necessary steps to
revitalize brand image during brand crisis. Revitalization can be made through
increasing Usage, entering new markets, repositioning, augmenting the
Product/services, obsolescing existing products and extending the brand
Saying “no comment” is one of the worst things you can do.
An organization with a poor reputation will suffer from poor crisis management.
5
Poor crisis management will impact the bottom line
Brand Positioning
Therefore, a marketer must be able to formulate such a strategy that would be able to
create a perception in the prospects mind which would stand apart from competing
brands and approximate more closely to what the consumer wants. To achieve this,
one must be able to defy conventional logic which says that the concept lies with the
marketer or inside the product but in reality a marketer must be able look inside the
prospects mind. This perceived image of the brand belongs not to the product but
rather is the property of the consumers’ mental perceptions and in some instances
could differ widely from the brands’ true physical characteristics.
Positioning appears to be confusing to this day and the opinions differ widely.
Some believe, it is the art of selecting out of a number of unique selling propositions,
the one which will get a marketer maximum sales.
Positioning also represents the essence of the brand as perceived by the target
consumer in a multibrand market.
6
In order to position a brand successfully we have to first understand which other
brands our brand must contend with so that it lodges itself in the target customer’s
perpetual space. In other words, what is the structure of the market or set of
substitutes amongst which our brand is to be positioned?
Finally, band attributes and benefits play a major role in positioning a brand
successfully. The attributes of a brand are the manufacture’s view of a brand. The
consumer’s frame of reference requires that those manufacturer claims or brand
attributes be translated into consumer benefits in order to mapping consumer
perception. A marketer has to discover ‘holes’ or vacant positions in the market
structure because they represent opportunities for new products.
Thus, positioning a brand and the target segment for which it is designated must be
considered together as integrated parts of one strategy because just as a brand must be
positioned to appeal to a consumer segment, a consumer segment too, would respond
to a brand that occupies the position preferred by it.
7
The customer whether it is an impulse or high involvement purchase looks for the
following attributes before buying it.
Taste Brand name
Flavour Price
Packaging
8
segment. The premium segment caters mostly to the
higher/upper middle class which is not as price sensitive
apart from being brand conscious.
9
the brand image after brand crisis and brand
repositioning of the company.
Brand image is the value and perception attached with
the company among consumers. Brand crisis and brand
repositioning of the company has been taken into account
and the analysis of brand is made. Analysis of the study
is made through likert scale method.
The importance of the study is very significant; this is
because it is difficult to exist without proper brand image
in the market. The use of the study is that by following
methodology of this study one can get a hint of the brand
image of any firm in FMCG sector. Moreover, this
method of study can be used to suggest necessary
decision during brand crisis of other related
organizations.
OBJECTIVES:
The present study “Brand Crisis of COCA COLA pvt
ltd” is intended to analyse the practise of brand crisis
management. The efficiency of the brand crisis
management is determined by the efficient administration
of its various components.
10
CHAPTER II
LITERATURE REVIEW:
Coca-cola repositioning to maximize brand power, By:
Muret Don,
Reports about the plan of Coca-cola company to increase
its presence and consumption in the beverage market.
Convention where the plan of the company was
announced, findings about the commercial beverages
consumed by an average person in a day, strategy of
Coca-cola in its product was given, description of the
1997 Coca-cola advertisement is analyzed and action
done by the company to solve the consumer complaints
about hot and sweaty amusement par.
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Always Coca-Cola? By: Simms, Jane
The article reports that a torrid year for the beverage
giant Coca-Cola Co. has dented its carefully crafted
brand image and eaten into its profits, and analyzes
whether it still has the power to win over consumers and
revive sales. The Coca-Cola Company, one-time global
corporate and marketing icon, is losing its luster. U.S.
anti-globalization sentiment and the backlash against
"unhealthy" foods have cost the company dear, and to
these problems can be added management succession
issues, a poor record on innovation, inefficient marketing
and high-profile mistakes
12
Coke, Pepsi Fight Product-Contamination Charges in
India, By: Slater, Joanna;
Reports that sales of several soft drinks in India have
dropped after alleged pesticide residues were found in
both soft drinks. Number of soft-drink products,
produced by Coca-Cola Co. and PepsiCo Inc., that were
tested and alleged by the New Delhi-based Center for
Science and Environment to carry pesticide residues 30
times higher than acceptable limits in Europe; Soft drinks
cited in the tests, including Coke, Pepsi, Diet Pepsi and
Sprite. The same levels of pesticides do not exist in the
same products sold in the U.S. Percentage of daily sales
drop since the report was published and population of
India and drinking habits of its citizens, suggesting a
huge emerging-market for soft drink products and missed
revenue opportunities for the soft drink makers.
CHAPTER III
CONCEPTUAL MODEL:
13
The conceptual model gives the relation between the
independent and dependent variables. This is also
established by hypotheses. The conceptual model is
explicitly chosen to be independent of implementation
details, such as concurrency or data storage. The aim of
conceptual model is to express the meaning of terms and
concepts used by domain experts to discuss the problem,
and to find the correct relationships between different
concepts. The conceptual model attempts to clarify the
meaning of various usually ambiguous terms, and ensure
that problems with different interpretations of the terms
and concepts cannot occur. The concepts of the
conceptual model can be used as basis of object-oriented
design and implemented in program code, in particular as
classes in object-oriented languages. The realization of
conceptual models of many domains can be combined to
a coherent platform.
Dependent Variable:
Consumer Perception
Independent Variables:
Brand ambassador
Pesticides and govt. issues
Promotions
Multinational companies
14
Relationship management
CONCEPTUAL DIAGRAM:
Brand ambassador
Consumer perception
Pesticides issues
CONSUMER PERCEPTION:
In the present business conditions when every company
is treating consumer as God, everyone is trying to find
the reasons why their product is a hit or a failure, so
market research has become one of the key tool or
practices for these organisations to find out the truths
about products, specially the FMCG sector.
It is a point where the consumer perception of a
particular concept or product becomes important, The
one more behaviour of the consumers is their attitude
towards the product. If one likes or dislike the product
then it is important to know why he likes or dislikes or
what is making that particular person to purchase it.
Thus we can see that consumer perception and attitudes
play a vital factor for any organization to come to a
conclusion about their product. Problem can be faced if
consumer perception is change negatively. So it is very
important to maintain positive perception among
consumer.
15
Coca Cola has faced negative perception (brand crisis)
due to certain factors but it was proactive enough to get
out of it. Perception for a brand is effected through
various factors like promotion, govt policies, general
issues, social responsibility, etc.
In this research we are mainly focusing on promotion and
pesticides issues which directly effects on consumer
perception of Coca Cola.
Brand ambassador:
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maximize quantitative influence on consumer demand.
The responsibilities of the promotional model depend on
the particular marketing campaign being carrying out,
and may include:
Pesticides issues:
Coca Cola products contain pesticides was found in the
year 2003 and it came into picture in year 2006 through
media. It was claimed that its product contain more
pesticides than the legal limit allowed in bottled water. A
huge brand crisis occurred in the same year and
consumer preference for the products declined. Few
states like Kerala banned usage of the products in the
state and farmers started using as pesticides for
agriculture. In short, worlds biggest brand name failed to
do what they do best. People started perceiving that
usage of product may harm their health specially
children. These issues created a direct impact on the
image of the brand and people started consuming less
due to which sales declined.
CHAPTER IV
METHODOLOGY
17
Any survey needs to collect data systematically and
analyses it to meet the objectives of research. The data
collected can be broadly classified into two types, i.e.,
primary data and secondary data.
Primary data was collected through questionnaire using
itemized scale method. The questions are in a form of
measurement scale having numbers and/or brief
description associated with each category. The categories
are ordered in terms of scale position. Likert scale
method has been used. It is a form of itemized scale
method with five response categories ranging from
“strongly agree” to “strongly disagree”, which requires
the respondents to indicate a degree of agreement or
disagreement with each of a series of statements related
to the stimulus objects. After filling up the questionnaire
numbers from 1 to 5 is assigned according to positive or
negative statement. The result is then analysed by using
statistical package for social sciences (SPSS) software
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the researcher and about which inferences are to be
made. Target population for this research paper are the
people who consume coca cola products. The target
population is defined in terms of element, sampling units,
extent and time. Element is the objects that possess the
information sought by the researcher and about which
inferences are to be made. Sampling unit is an element,
or a unit containing the element, that is available for
selection at some stage of sampling process.
19
sampling units is left primarily to the interviewer or
researcher. This method is used because respondents are
selected as they are happening to be in right place and at
the right time. It is also used due to its least expensive
and least time consuming characteristics. The sampling
units are accessible, easy to measure and cooperative.
Inspite of the advantages these methods have
disadvantages too.
Research design:
Research design is a framework or blue print for
conducting the business research project. It specifies the
details of the procedures necessary for obtaining the
information needed to structure and /or solve business
research problem. It is classified into exploratory and
conclusive research.
This research is based on conclusive research design
which is further classified into descriptive research.
Descriptive research
The major objective of descriptive research is to describe
something-usually market characteristics or function. It
assumes that the research has much prior knowledge
about the problem situation as a result descriptive
research is pre planned and structure. It is typically based
on large representative samples. A formal research
design specifies the methods for selecting the source of
information and for collecting data from those sources. It
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is marked by a clear statement of the problem, specific
hypothesis and detail in formation needs.
This study has been conducted through cross-sectional
design which involves of information from any given
sample of population elements only once.
Descriptive cross-sectional
Research design
research design
HYPOTHESIS:
Null hypothesis: There is no relation between dependant
variable and independent variables
Alternatives hypothesis: There is relation between
dependant variable and independent variables
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Table no.1
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1. Significance level between consumer perception
and brand ambassador is 0.044 which is less than
0.05 and confidence level is 95.6. Therefore we
reject null hypothesis, which signifies that there is
relationship between consumer perception and
brand ambassador.
2. Significance level between consumer perception
and pesticides issue is 0.239 which is more than
0.05 and confidence level is 76.1. Therefore we
accept null hypothesis, which signifies that there
relationship between consumer perception and
brand ambassador.
CHAPTER V:
Reliability
Reliability is the consistency of a set of measurements or
measuring instrument, often used to describe a test. A
popular approach is to use the coefficient alpha or
cronbach’s alpha. The coefficient varies from 0 to 1, and
a value greater than 0.6 indicates satisfactory internal
consistency reliability.
N %
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Case Processing Summary
Excludeda 0 .0
Total 40 100.0
Reliability Statistics
.531 3
Table no.2
N %
Excludeda 0 .0
Total 40 100.0
Reliability Statistics
.205 3
Table no.3
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development of scale, time constraint and the questions
formed were not able to measure the variables.
Pesticides:
N %
Excludeda 0 .0
Total 40 100.0
Reliability Statistics
.489 3
Table no.4
REGRESSION:
Model Summary
24
Table no.5
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Table no.6
CORRELATION:
Perception and Ambassador:
25
Correlations
perceptionmean ambassadormean
N 40 40
N 40 40
Table no.7
Correlations
perceptionmean Pesticidesmean
N 40 40
N 40 40
Table no.8
CHAPTER VI
26
FINDINGS:
SUGGESTIONS:
27
LIMITATIONS:
CONCLUSION:
28
Consumer perception on Coca Cola products plays a
major role, as it has direct impact on brand image and
sales volume of the products. The present paper explores
the major factors responsible for consumer perception
based on respondents’ perception on various independent
variable like brand ambassador and pesticides issues. It
also provides a framework of the factors which are taken
to assess the consumer perception on Coca Cola co. It
has been found that pesticide issues have more impact on
consumer perception than brand ambassador has.
Positive consumer perception among consumer is very
important for any organization and necessary steps
should be taken from time to time in order to increase
sales and create positive brand image, to lead
competition in the market.
CHAPTER VII
BIBLIOGRAPHY
29
Calwell, C. J. Zugel, P. Banwell, and W. Reed. 2002.
“2001-A CFL Odyssey: What Went Right?” 2002
ACEEE Summer Study of soft drinks, V. 6, p.6.15-6.27
Websites:
www.consumerpsychologist.com
www.eris.ed.gov
www.ingentaconnect.com
www.springerlink.com
CHAPTER VIII
APPENDIX:
QUESTIONNAIRE
My name is Ch. Padma. I am pursuing PGDM from IPE,
Hyderabad. I am doing a survey to find the consumers
perception on Coca Cola pvt ltd. This survey is a part of the
course. Your support (in terms of filling up this questionnaire)
is required to make this survey successful. Please fill up the
questionnaire which is given below. Your personal
information will be kept confidential.
SA A N D
1 2 3 4
30
1. I feel Coca Cola is superior drink than other brand
Thank you very much for sparing the time to complete this
questionnaire.
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