EXECUTIVE SUMMERY

Giant soft drink company Coca Cola has come under intense scrutiny by investors due to its

inability to effectively carry out its marketing program. Consequently it is seeking the help of

Polianitis Marketing Company Pty Ltd to develop a professional marketing plan which will help

the business achieve it’s objectives more effectively and efficiently, and inevitably regain there

iron fist reign on the soft drink industry.

When establishing a re-birthed marketing plan every aspect of the marketing plan must be

critically examined and thoroughly researched. This consists of examining market research,

auditing business and current situation (situation analysis) and carefully scrutinising the soft

drink industry and possibilities for Coca Cola in the market. Once Coca Cola have carefully

analysed the internal and external business environment and critically examined the industry in

general the most suitable marketing strategies will be selected and these strategies will be

administered by effectively and continually monitoring external threats and opportunities and

revising internal efficiency procedures.

Market Analysis:

The market analysis investigates both the internal and external business environment. It is vital

that Coca cola carefully monitor both the internal and external aspects regarding it’s business as

both the internal and external environment and their respective influences will be decisive traits

in relation to Coke’s success and survival in the soft drink industry.

Internal Business Environment

The internal business environment and its influence is that which is to some extent within the

business’s control. The main attributes in the internal environment include efficiency in the

production process, through management skills and effective communication channels. To

effectively control and monitor the internal business environment, Coke must conduct continual

appraisals of the business’s operations and readily act upon any factors, which cause

inefficiencies in any phase of the production and consumer process.

External Business Environment

The External business environment and its influences are usually powerful forces that can affect

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whole industry and, in fact, a whole economy. Changes in the external environment will create

opportunities or threats in the market place Coca cola must be aware off. Fluctuations in the

economy, changing customer attitudes and values, and demographic patterns heavily influence

the success of Coca Cola’s products on the market and the reception they receive from the

consumers.

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OBJECTIVES

To find out the consumer acceptability of coca cola products in the market.

To study the present & potential market segment of coca cola products.

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RESEARCH METHODOLOGY

Methodology can be defined as a systemic way of approaching a problem to identify the truth

and for this certain step should be taken in a systematic order and these steps are called methods.

“Research methodology is a process of planning, acquiring, analyzing and disseminating relevant

data and information”.

The use of right methodology is necessary because if the right methods are not adopted and

thoughts are not arrange in a logical order the exact truth might not be expressed. Thus the

methodology means correct arrangement of thoughts and knowledge.

WHY RESEARCH IS REQUIRED

Conceptually, the purpose of research is to discover the answers for the questions through

application of scientific procedures. The main aim of the research is to find out the truth which is

hidden and which has not been discovered yet.

Through each research study has its own specific purpose, but generally researchers are done:

To gain familiarities with a phenomenon or to achieve new insights into it.

To determine the frequency with which something occurs or with which associated with

something else.

To test the hypothesis of casual relationship between variables.

To take appropriate decisions.

Research is a careful and systematic effort of gaining new knowledge. Research is an original

contribute on to the existing stock of knowledge making for its advancement; it is pursuit of true

with the help of study, observation, comparison and experiment.

In short the search of knowledge through objectives and systematic method of finding solution to

problem is research.

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RESEARCH DESIGN:

The research design is the plan, structure and strategy of investigation conceived so as to obtain

answer to research questions and to control variance.

The definition of three important terms – plan, structure and strategy.

The plan is an outline of the research scheme on which the researcher is to work. The structure

of the research is a more specific outline or the scheme and the strategy shows how the Research

will be carried out, specifying the methods to be used in collection and analysis of data.

Research design is the specification of methods and the procedure fro acquiring the information

needed. It is the operational pattern or framework of the projects that stipulate what information

is to be collected from which sources by the procedures. The importance of research design lies

in the fact that it makes a statement of what is to be done in order to achieve the research

objectives and how it is to be done. It is an expression of what of the research exercise in terms

of results and the analytical input needed to convert data into research findings.

A design may be quite suitable in one case but could not fit in some other research problem. One

design cannot serve the purpose of all types of research problems. Also most of the research

problems are complex in nature and cannot be solved by a specific research design. Hence a

combination of research design is used to reach a solution.

The research design when chosen correctly prevents deviation in the study. The present study is

the cross sectional descriptive type with fields study and partly casual in nature as it seeks to find

out consumer behavior with respect to mobile and correlate them with income, age, education,

professions etc. and formulate marketing strategies based on the study.

SAMPLING AND SAMPLE DESIGN:

It is not possible to examine every item in the population hence interferences is drawn about a

large numbers of items possessing a particular attribute based on based analysis of fraction of

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such items. It is called a sample. For developing a sampler design following points need to be

discussed with regard to the present study –

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POPULATION:

In statistical usage the terms population is applied to any finite collection of individuals. It has

displaced the orders terms universe. It is aggregate of all elements possessing certain specified

characteristics which need to studied and defined prior to sample. Population can be finite if

units can be counted or infinite. Since the present study is done in Bareilly, The population is

finite. Population can be defined in terms of elements, sampling units, extent and time.

In this study, the specifications will be as follows:

1. Element : People

2. Sampling Units : Distributors

3. Extent …………………. :

ELEMENT:

An Element is the unit about which information is collected. It provides the basis for analysis. It

identifiable physically. In the present study the element is dealer having a good knowledge about

the service. (Regarding Brand)

SAMPLING UNIT:

The sampling unit is the basic unit containing the element of the target population. The sampling

may be different from the element. It can be either geographical unit (state, district etc.) or social

unit (Household, family, club etc.) or a construction unit (enclave, house, flat etc.) or it may be

an individual. In the present stuffy, a sample of distributor is selected in the three stages. First of

all a sample of cities is selected, than a sample of colonies is selected from each selected colony

after the entire distributor in it.

SAMPLE FRAME:

A sample frame could be a telephone directory, a list of block and localities of a city, a map or

any other list consisting of all the sampling units, each stage of sampling process requires its own

sampling frame. Since the present study undergoes two stages sampling process, we would need

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two sampling frames. First a list of localities, Second a list of distributors with in the selected

localities.

SAMPLING DESIGN: Representation of entire universe is only possible through the sampling

technique. Considerable care has been taken in selecting the sample so that is Convenient in

terms of size and enough to represent the entire universe

SUMMARY OF RESEARCH DESIGN

Data source: Primary data (survey & Questionnaire) and secondary ( books, internet,

newspaper , magazine)

Research instrument: Structured Questionnaire with open and close ended questions.

Sample unit: consumers

Sample size: 50 consumers

Sample area: Bareilly city and nearby area

Sampling Technique: Convenient Sampling

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STUDY OF THE COMPANY

COMPANY PROFILE

Coca-Cola (also known as Coke, a name that was trademarked by The Coca-Cola

Company after it was discovered many people called it by that particular name) is a very popular

cola (a carbonated soft drink) sold in stores, restaurants and vending machines in more than 200

countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often referred

to as simply Coca-Cola or Coke. Coke is one of the world’s most recognizable and widely sold

commercial brands; its major rival is Pepsi.

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Coke was originally intended as a patent medicine when it was invented in the late 19th

century, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing

tactics led Coke to its dominance of the world soft drink market throughout the 20th century.

Although faced with critiques of its health effects and various allegations of wrongdoing by the

company, Coca-Cola has remained a popular soft drink to the present day 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 thanks to a belief that carbonated water was good for the health. The first sales

were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the first eight

months only nine drinks were sold each day. Coca-Cola was sold in bottles for the first time on

March 12, 1894, and cans of Coke first appeared in 1955. By 1888, three versions of Coca-Cola -

sold by three separate businesses were on the market.

On February 7, 2005, the Coca-Cola Company announced that in the second quarter of

2005 they planned a launch of a Diet Coke product sweetened with the artificial sweetener

sucralose ("Splenda"), the same sweetener currently used in Pepsi One. The company actually

produces concentrate for Coca-Cola, which is then sold to various Coca-Cola bottlers throughout

the world. The bottlers, who hold territorially-exclusive contracts with the company, produce

finished product in cans and bottles from the concentrate in combination with filtered water and

sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to

retail stores and vending machines. Such bottlers include Coca-Cola Enterprises, which is the

single largest Coca-Cola bottler in North America and Europe. The Coca-Cola Company also

sells concentrate for fountain sales to major restaurants and food service distributors.

The Coca-Cola Company has on occasion introduced other cola drinks under the Coke

brand name. The most famous of these is Diet Coke, which has become a major diet cola but

others exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns

and markets other soft drinks that do not carry the Coca-Cola branding, such as Sprite, Fanta,

and others. The actual production and distribution of Coca-Cola follows a franchising model.

The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers

throughout the world who hold Coca-Cola franchises for one or more geographical areas. The

bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial

sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail

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stores, vending machines, restaurants and food service distributors. The bottlers are normally

also responsible for all advertisement and other sales initiatives within their areas.

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

In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thums Up.

However, The Coca-Cola Company purchased Thums Up in 1993. The products of the company

reach consumers and customers around the world through a vast distribution network made up of

local bottling companies. These bottlers are located around the world, and most are independent

businesses. Using syrups, concentrates and beverage bases produced by the Coca-Cola

Company, their global bottling system packages and markets products, then distributes them to

more than 14 million retail outlets worldwide. The Coca-Cola Company is committed to

assisting its bottlers with the functions of an efficient bottling operation and initiating quality

systems to ensure the highest quality products for their consumers.

The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in

1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers

everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office in

1977; an honor awarded very few packages. The most valuable assets happen to be the

trademarks they possess. For Coca-Cola, the most drunk soft drink on earth is one of the world s

best-known and most admired trademarks, recognized by more than 90 percent of the world s

population. Interestingly, the world that is touched by the cherished drinks for every moment, the

Coca-Cola trademarks happen not only to be their most valuable assets but of the entire earth.

The business system of the Company in India directly employs approximately 6,000 people, and

indirectly creates employment for many more in related industries through our vast procurement,

supply and distribution system. On the distribution front, 10-tonne trucks, open-bay three-

wheelers that can navigate the narrow alleyways of Indian cities, ensure availability of our

brands in every nook and corner of the country. The term soft drink originally applied to

carbonated drinks made from concentrates, although it now commonly refers to almost any cold

drink that does not contain alcohol.

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Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US based

Coca-Cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan

Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and distribution of

beverages across the country. Coca-Cola India is among the country’s top international investors,

having invested more than US$ 1 billion in India within a decade of its presence and further

pledged another US$ 100 million in 2003 for its operations. It is the world’s largest selling soft

drink since 1886. The Coca-Cola Company returned to India in 1993 after a gap of 16 years

giving new Thums up to the Indian Soft Drink Market and took over the ownership of the

nation's top soft-drink brands and bottling network. The vast Indian operations comprises 25

wholly company owned bottling operations and another 24 franchisee owned bottling

operations and a network of 21 contract packers also manufactures a range of products for the

Company.

Companies must work harder to ensure that their marketing has the greatest impact possible.

Increasing competition makes it difficult for a mass marketing strategy to succeed. Customers

are becoming more diversified and firms are constantly differentiating their products relative to

competitors.

When the focus is on segmented markets, the company's marketing can better match the needs of

that group. Market segmentation allows firms to focus their resources more effectively, and with

a greater chance of success. Marketing, product and brand managers are continuously being

asked to increase their return on investment. They're constantly searching for new information

about their markets, and new ways to approach them.

This is where market segmentation comes in. Divide and Conquer Market segmentation focuses

on that subset of prospects that have the greatest potential of becoming customers and generating

revenue. Companies who segment their markets match their strengths and offerings to the groups

of customers most likely to respond to them. Differentiate your products and services to meet

your customer needs and desires. Design or redesign new products and services to meet your

market needs. Find hidden needs and make improvements to your existing products.

By selecting and focusing on the most responsive segments to the exclusion of others, marketing

can be created to more effectively fit your consumers. Finding, understanding and focusing on

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the needs of your best customers can make you a market leader. Target your marketing mix to

the customers most likely to want your products or services Identify behaviors and buying

motives for your products. Identify your most and least profitable customers. Help you avoid

unprofitable markets. Increase brand loyalty and decrease brand switching. Learning more about

your competitors makes you more effective Improve your competitive positioning to be more

accurate and better differentiate you from the competition. Reduce competition by competing in

a more narrowly defined market and establishing a niche. Market segmentation is a proven way

of improving profitability. By focusing on individualized sub groups, you're better able to meet

their needs and gain higher market share and profits. Refine your pricing to maximize revenue.

Find markets where you can increase your price. Optimize your marketing resources and get

themost impact for your investment Focus and match your activities to things you can do

effectively and profitably When segmentation is done right, you get the highest return for your

marketing expenditure.

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LITERATURE OF REVIEW

STUDY OF THE INDUSTRY

Market Segmentation

The purpose for segmenting a market is to allow your marketing/sales program to focus on the

subset of prospects that are "most likely" to purchase your offering. If done properly this will

help to insure the highest return for your marketing/sales expenditures. Depending on whether

you are selling your offering to individual consumers or a business, there are definite differences

in what you will consider when defining market segments.

Category of Need

The first thing you can establish is a category of need that your offering satisfies. The following

classifications may help.

For businesses:

Strategic - your offering is in some way important to the enterprise mission, objectives and

operational oversight. For example, a service that helped evaluate capital investment

opportunities would fall into this domain of influence. The purchase decision for this category of

offering will be made by the prospect's top level executive management.

Operations - your offering affects the general operating policies and procedures. Examples

might be, an employee insurance plan or a corporate wide communications system. This

purchase decision will be made by the prospect's top level operations management.

Functional - your offering deals with a specific function within the enterprise such as data

processing, accounting, human resources, plant maintenance, engineering design, manufacturing,

inventory control, etc. This is the most likely domain for a product or service, but you must

recognize that the other domains may also get involved if the purchase of the product or service

becomes a high profile decision. This purchase decision will be made by the prospect's

functional management.

For the individual consumer:

Social Esteem or Pleasure - your offering satisfies a purely emotional need in the consumer.

Examples are a mink coat or a diamond ring. There are some products that are on the boundary

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between this category and the Functional category such as a Rolex watch (a Timex would satisfy

the functional requirement and probably keep time just as well).

Functional - your offering meets a functional requirement of the consumer such as a broom,

breakfast cereal or lawnmower.

Segmentation of Needs

Then you should establish what the need is and who is most likely to experience that need. Your

segmentation will be determined by a match between the benefits offered by your offering and

the need of the prospect. Some "need" categories for segmentation include:

Reduction in expenses

Prospects might be businesses that are downsizing (right sizing), businesses that have products in

the mature stage of their life cycle or individuals with credit rating problems.

Improved cash flow

Prospects might be businesses that have traditionally low profit margins, businesses that have

traditionally high inventory costs or individuals that live in expensive urban areas.

Improved productivity

Prospects might be businesses that have traditionally low profit margins, businesses that have

recently experienced depressed earnings or individuals with large families.

Improved manufacturing quality

Prospects might be businesses with complex, multi-discipline manufacturing processes.

Improved service delivery

Prospects might be service businesses in highly competitive markets, product businesses

requiring considerable post-sale support or individuals in remote or rural areas.

Improved employee working conditions/benefits

Prospects might be businesses where potential employees are in short supply.

Improvement in market share/competitive position

Prospects might be new entrants to a competitive market.

Need for education

Prospects might be businesses or individuals looking for books on business planning, or seminars

on Total Quality Management.

Involvement with social trends

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Prospects might be businesses concerned with environmental protection, employee security, etc.

or individuals who believe in say 'no' to drugs, anti-crime, etc.

Specific - relating to product/service characteristics

Prospects might be businesses or individuals interested in safety, security, economy, comfort,

speed, quality, durability, etc.

Factors that segment prospects

Having determined the more general segmentation characteristics you can proceed to a more

detailed analysis of the market. There are literally thousands of ways to segment a market, but

the following are some of the more typical segmentation categories.

For businesses:

Industry by SIC code

This is especially beneficial for vertical market offerings.

Size - revenues, employees, locations

In general if your offering is highly sophisticated, requires significant resources or provides

greater value based on volume, then the target should be the larger enterprises.

Job position/responsibility

Examples of offerings might be planning software for managers or cleaning agents for

maintenance managers.

Climate-Examples of offerings might be dehumidifiers in areas near the ocean or snow plows in

northern areas.

Time related factors-Some services in this category are vacation related industries in summer and

tax planners in the spring.

Language-An example of a language specific service is a Spanish TV channel.

Status in the industry-You might want to target businesses that are the technology leader or

revenue leader or employee satisfaction leader, etc.

Accessibility-To minimize promotion and sales expense you may want to target urban rather

than rural or local rather than national prospects.

Future potential-A good example is how Apple Computer supplied products to schools at all

levels to condition students graduating into the marketplace.

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Ability to make quick purchase decision-Targeting individual purchasers versus business

committees can significantly reduce marketing expense and increase the probability of a quick

close.

Access (or lack of access) to competitive offerings-Cable TV business's significant investment in

their service delivery system has allowed a near monopoly for some time. IBM's service

reputation insured minimal competition during the mainframe days.

Need for customization

Offerings such as police cars, busses for municipalities and specialized computer systems fall

into this category. Product or service application to a business function, Examples are data

processing, accounting, human resources and plant maintenance.

For Individual Consumers:

Physical Size-Offerings might be big men's clothing, golf clubs for shorter players, etc.

Creation of or response to a fad, Examples are hula hoops, Jurassic Park T-shirts, pet rock,

physical fitness, etc.

Geographic location-Marketers take advantage of location by selling suntan lotion in Hawaii, fur

coats in Alaska, etc.

Time related factors-You may be able to target vacationers in summer, impulse buyers during the

holidays or commuters at 7AM.

Demographics/culture/religion-Ethnic products would fall into this category.

Gender-Product examples are scarves for women, ties for men, etc.

Age-Product examples are toys for children, jewelry for women, etc.

Social status-This could include country club memberships, philanthropic contributions, etc.

Education-Product and service examples are encyclopedias, scientific calculators, learning to

read tools and financial counseling.

Avocation-This could include products for hunting, fishing, golf, art work, knitting, etc.

Special Interests-You could target cat lovers, science fiction readers, jazz music collectors, etc.

Accessibility because the individual is more difficult to reach you may want to segment by urban

versus rural, train commuters, people who read Wall Street Journal, etc.

Access (or lack of access) to competitive offerings Due to high investment capital requirements

or timing of market entry you may be able to capture a significant market share in a specific

geographical area. Examples might be a trash service, emergency medical support, etc.

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Need for specific information-Based on features or content of your offering you can target a

market segment. A product might be books on how to start a business or a service might be

seminars on how to quit smoking.

Need for customization-Product/service examples are home decoration, fashion wear, personal

portraits, etc. Need for quality, durability, etc. Product examples are mountain climbing gear,

carpenter's tools, etc. Degree of a product/service ingredient-Segmentation based on prospect

preferences is common. An example is dark chocolate for some tastes, light chocolate for others.

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Positioning

In their 1981 book, Positioning: The Battle for your Mind, Al Ries and Jack Trout describe how

positioning is used as a communication tool to reach target customers in a crowded marketplace.

Jack Trout published an article on positioning in 1969, and regular use of the term dates back to

1972 when Ries and Trout published a series of articles in Advertising Age called "The

Positioning Era." Not long thereafter, Madison Avenue advertising executives began to develop

positioning slogans for their clients and positioning became a key aspect of marketing

communications.

Positioning: The Battle for your Mind has become a classic in the field of marketing. The

following is a summary of the key points made by Rise and Trout in their book.

Information Overload

Raise and Trout explain that while positioning begins with a product, the concept really is about

positioning that product in the mind of the customer. This approach is needed because consumers

are bombarded with a continuous stream of advertising, with advertisers spending several

hundred dollars annually per consumer in the U.S. The consumer's mind reacts to this high

volume of advertising by accepting only what is consistent with prior knowledge or experience.

It is quite difficult to change a consumer's impression once it is formed. Consumers cope with

information overload by oversimplifying and are likely to shut out anything inconsistent with

their knowledge and experience. In an over-communicated environment, the advertiser should

present a simplified message and make that message consistent with what the consumer already

believes by focusing on the perceptions of the consumer rather than on the reality of the product.

Getting Into the Mind of the Consumer

The easiest way of getting into someone's mind is to be first. It is very easy to remember who is

first, and much more difficult to remember who is second. Even if the second entrant offers a

better product, the first mover has a large advantage that can make up for other shortcomings.

However, all is not lost for products that are not the first. By being the first to claim a unique

position in the mind the consumer, a firm effectively can cut through the noise level of other

products. For example, Miller Lite was not the first light beer, but it was the first to be positioned

as a light beer, complete with a name to support that position. Similarly, Lowenbrau was the

most popular German beer sold in America, but Beck's Beer successfully carved a unique

position using the advertising,

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"You've tasted the German beer that's the most popular in America. Now taste the German beer

that's the most popular in Germany."

Consumers rank brands in their minds. If a brand is not number one, then to be successful it

somehow must relate itself to the number one brand. A campaign that pretends that the market

leader does not exist is likely to fail. Avis tried unsuccessfully for years to win customers,

pretending that the number one Hertz did not exist. Finally, it began using the line,

After launching the campaign, Avis quickly became profitable. Whether Avis actually tried

harder was not particularly relevant to their success. Rather, consumers finally were able to relate

Avis to Hertz, which was number one in their minds.

Another example is that of the soft-drink 7-Up, which No. 3 behind Coke and Pepsi was. By

relating itself to Coke and Pepsi as the "Uncola", 7-Up was able to establish itself in the mind of

the consumer as a desirable alternative to the standard colas.

When there is a clear market leader in the mind of the consumer, it can be nearly impossible to

displace the leader, especially in the short-term. On the other hand, a firm usually can find a way

to position itself in relation to the market leader so that it can increase its market share. It usually

is a mistake, however, to challenge the leader head-on and try to displace it.

Positioning of a Leader

Historically, the top three brands in a product category occupy market share in a ratio of 4:2:1.

That is, the number one brand has twice the market share of number two, which has twice the

market share of number three. Raise and Trout argue that the success of a brand is not due to the

high level of marketing acumen of the company itself, but rather, it is due to the fact that the

company was first in the product category. They use the case of Xerox to make this point. Xerox

was the first plain-paper copier and was able to sustain its leadership position. However, time

after time the company failed in other product categories in which it was not first.

Similarly, IBM failed when it tried to compete with Xerox in the copier market, and Coca-Cola

failed in its effort to use Mr. Pibb to take on Dr. Pepper. These examples support the point that

the success of a brand usually is due to its being first in the market rather than the marketing

abilities of the company. The power of the company comes from the power of its brand, not the

other way around.

With this point in mind, there are certain things that a market leader should do to maintain the

leadership position. First, Ries and Trout emphasize what it should not do, and that is boast about

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being number one. If a firm does so, then customers will think that the firm is insecure in its

position if it must reinforce it by saying so.

If a firm was the first to introduce a product, then the advertising campaign should reinforce this

fact. Coca-Cola's "the real thing" does just that, and implies that other colas are just imitations.

Another strategy that a leader can follow to maintain its position is the multibrand strategy. This

strategy is to introduce multiple brands rather than changing existing ones that hold leadership

positions. It often is easier and cheaper to introduce a new brand rather than change the

positioning of an existing brand. Ries and Trout call this strategy a single-position strategy

because each brand occupies a single, unchanging position in the mind of the consumer.

Finally, change is inevitable and a leader must be willing to embrace change rather than resist it.

When new technology opens the possibility of a new market that may threaten the existing one, a

successful firm should consider entering the new market so that it will have the first-mover

advantage in it. For example, in the past century the New York Central Railroad lost its

leadership as air travel became possible. The company might have been able to maintain its

leadership position had it used its resources to form an airline division.

Sometimes it is necessary to adopt a broader name in order to adapt to change. For example,

Haloid changed its name to Haloid Xerox and later to simply Xerox. This is a typical pattern of

changing Name 1 to an expanded Name 1 - Name 2, and later to just Name 2.

Positioning of a Follower

Second-place companies often are late because they have chosen to spend valuable time

improving their product before launching it. According to Ries and Trout, it is better to be first

and establish leadership.

If a product is not going to be first, it then must find an unoccupied position in which it can be

first. At a time when larger cars were popular, Volkswagen introduced the Beetle with the slogan

"Think small." Volkswagen was not the first small car, but they were the first to claim that

position in the mind of the consumer.

Other positions that firms successfully have claimed include:

Age (Geritol)

High price (Mobil 1 synthetic engine lubricant)

Gender (Virginia Slims)

Time of day (Nyquil night-time cold remedy)

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Place of distribution (L'eggs in supermarkets)

Quantity (Schaefer - "the one beer to have when you're having more than one.")

It most likely is a mistake to build a brand by trying to appeal to everyone. There are too many

brands that already have claimed a position and have become entrenched leaders in their

positions. A product that seeks to be everything to everyone will end up being nothing to

everyone.

Repositioning the Competition

Sometimes there are no unique positions to carve out. In such cases, Ries and Trout suggest

repositioning a competitor by convincing consumers to view the competitor in a different way.

Tylenol successfully repositioned aspirin by running advertisements explaining the negative side

effects of aspirin.

Consumers tend to perceive the origin of a product by its name rather than reading the label to

find out where it really is made. Such was the case with vodka when most vodka brands sold in

the U.S. were made in the U.S. but had Russian names. Stolichnaya Russian vodka successfully

repositioned its Russian-sounding competitors by exposing the fact that they all actually were

made in the U.S., and that Stolichnaya was made in Leningrad, Russia.

When Pringle's new-fangled potato chips were introduced, they quickly gained market share.

However, Wise potato chips successfully repositioned Pringle's in the mind of consumers by

listing some of Pringle's non-natural ingredients that sounded like harsh chemicals, even though

they were not. Wise potato chips of course, contained only "Potatoes. Vegetable oil. Salt." As a

resulting of this advertising, Pringle's quickly lost market share, with consumers complaining

that Pringle's tasted like cardboard, most likely as a consequence of their thinking about all those

unnatural ingredients. Ries and Trout argue that is usually is a lost cause to try to bring a brand

back into favor once it has gained a bad image, and that in such situations it is better to introduce

an entirely new brand.

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23

POSITION STATEMENT FROM COCA-COLA

COMMITTED TO PROVIDING NEW ZEALANDERS WITH CHOICE

The Coca-Cola Company and Coca-Cola Amatil NZ produce a range of beverages suited to

different ages, stages, lifestyles and occasions. This includes soft drinks, diet drinks, juices and

juice drinks, waters, energy drinks, sports drinks and cordials.

As part of a healthy, varied and balanced diet and an active lifestyle, all our products can be

enjoyed by the majority of people.

We are committed to helping our customers select the product that is best suited to their needs

through the provision of detailed product information supported by general advice on healthy

eating, drinking and lifestyles.

We understand that balancing energy intake with energy output is key to a healthy body weight.

We therefore provide choice through range of low or no-kilojoule products that are ideally suited

to the needs of people who wish to reduce energy intake through beverage selection.

Such products are readily available at a similar cost to an equivalent higher energy product.

As one of New Zealand's largest producers and marketers of non-alcoholic beverages we

promote physical activity through our active lifestyles programme and sponsorship of sport.

Through new product development we will continue to release a range of new types of drinks,

including low or no kilo joule products as we look at ways in which to cater to those people who

wish to reduce energy intake through selection of lower energy beverages.

Children and the role of our beverages

We respect and support the primary role that parents play in decisions affecting the lives of

young children, including choices about diet and lifestyle. Beverage choice, like food selection,

is a role for parents and we assist them in this through the provision of nutrition information and

by making available a wide range of products suitable for all ages, stages and occasions.

Coca-Cola's longstanding global policy ensures we do not directly market our products to

children under the age of twelve. Our brands are not advertised during children's television times

and we do not show children under 12 in advertising or promotional materials drinking our

products outside of the presence of an adult. Our sampling events are directed to people over the

age of 12.

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In the small number of schools where we provide vending machines we work with the school to

provide a range of beverages, and ensure that lower energy products are priced attractively and

the packaging is in a single serve size. Guidelines have been established to oversee the manner in

which we work with schools and their tuck shops.

It is company practice to sell diet drinks and sugar-free alternatives at a similar price to regular

carbonated soft drinks. Retailers offering 'specials' are encouraged to include both the regular

and diet versions of our soft drinks. Through new product development we aim to develop more

products that meet the unique needs of children and will work with nutrition experts as we do

this. For healthy active and growing children, beverages higher in energy can be enjoyed as part

of a balanced and varied diet. However, we also provide a range of low or no-kilo joule products

also suitable for children.

Supporting sport and physical activity

Globally, The Coca-Cola Company has a long history of supporting sport and activity. We have

been a major Olympic Games sponsor since 1928 and also sponsor major international sporting

events. In New Zealand, Coca-Cola has been an All Black sponsor for the past decade and has

also supported provincial netball and rugby.

At a grassroots level, Coca-Cola has formed a partnership with the National Association of

OSCAR (Out of School Care and Recreation) to develop and implement a national physical

activity programme available to 75,000 young New Zealanders. In South Auckland, the Get

Moving programme is working to encourage children to participate in local sports and recreation

courses.

The Pump water brand is now a major sponsor of the Heart Foundation's Jump Rope for Heart

programme that runs in schools across New Zealand and through the Powerade sports drink

brand, we support numerous sporting events around the country.

Labelling

All products of The Coca-Cola Company and Coca-Cola Amatil provide clear nutrition

information in compliance with New Zealand regulations.

Packaging

Coca-Cola is committed to strict environmental guidelines, and to ensuring our packaging has as

little impact as possible on the environment. To this end, a recycling project was introduced in

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New Zealand during 2001 which ensures our PET bottles contain an average of 10% recycled

material.

Information Programmes

Our consumer contact centre provides around the clock access to information about our

companies and products via a free phone number (0800 505 123). An information pamphlet

about our products is available via this number.

Pricing

It is company practice to sell diet drinks and sugar-free soft drink alternatives at a similar price to

regular carbonated soft drinks. Similarly, any competitions or promotions of Coca-Cola can be

entered by our consumers who purchase diet Coke. Although at the discretion of retailers, special

offers and reduced prices on soft drinks are usually available for both the regular and diet

versions of our soft drinks.

Corporate Citizenship

In addition to our partnership with National Association of OSCAR, Coca-Cola's contribution to

the New Zealand community includes the annual Coca-Cola Christmas in the Park events in

Auckland and Christchurch and The Coca-Cola Careers Expo in Dunedin, Wellington, and

Auckland. The Coca Smoke free Request is the country's only annual school music competition

that has helped launch the careers of many New Zealand artists.

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SWOT Analysis:

SWOT stands for Strengths Weakness Opportunities Threats. SWOT analysis is a technique

much used in many general management as well as marketing scenarios. SWOT consists of

examining the current activities of the organization- its Strengths and Weakness- and then using

this and external research data to set out the Opportunities and Threats that exist.

Strengths:

Coca-Cola has been a complex part of world culture for a very long time. The product's image is

loaded with over-romanticizing, and this is an image many people have taken deeply to heart.

The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. This extremely

recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million

times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and

enjoyment" (Allen, 1995).

Additionally, Coca-Cola's bottling system is one of their greatest strengths. It allows them to

conduct business on a global scale while at the same time maintain a local approach. The bottling

companies are locally owned and operated by independent business people who are authorized to

sell products of the Coca-Cola Company. Because Coke does not have outright ownership of its

bottling network, its main source of revenue is the sale of concentrate to its bottlers.

Weaknesses:

Weaknesses for any business need to be both minimized and monitored in order to effectively

achieve productivity and efficiency in their business’s activities, Coke is no exception. Although

domestic business as well as many international markets are thriving (volumes in Latin America

were up 12%), Coca-Cola has recently reported some "declines in unit case volumes in Indonesia

and Thailand due to reduced consumer purchasing power." According to an article in Fortune

magazine, "In Japan, unit case sales fell 3% in the second quarter [of 1998]...scary because while

Japan generates around 5% of worldwide volume, it contributes three times as much to profits.

Latin America, Southeast Asia, and Japan account for about 35% of Coke's volume and none of

these markets are performing to expectation.

Coca-Cola on the other side has effects on the teeth which is an issue for health care. It also has

got sugar by which continuous drinking of Coca-Cola may cause health problems. Being

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addicted to Coca-Cola also is a health problem, because drinking of Coca-Cola daily has an

effect on your body after few years.

Opportunities:

Brand recognition is the significant factor affecting Coke's competitive position. Coca-Cola's

brand name is known well throughout 94% of the world today. The primary concern over the

past few years has been to get this name brand to be even better known. Packaging changes have

also affected sales and industry positioning, but in general, the public has tended not to be

affected by new products. Coca-Cola's bottling system also allows the company to take

advantage of infinite growth opportunities around the world. This strategy gives Coke the

opportunity to service a large geographic, diverse area.

Threats:

Currently, the threat of new viable competitors in the carbonated soft drink industry is not very

substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is

very strong, but consumers are not necessarily married to it. Possible substitutes that

continuously put pressure on both Pepsi and Coke include tea, coffee, juices, milk, and hot

chocolate. Even though Coca-Cola and Pepsi control nearly 40% of the entire beverage market,

the changing health-consciousness of the market could have a serious affect. Of course, both

Coke and Pepsi have already diversified into these markets, allowing them to have further

significant market shares and offset any losses incurred due to fluctuations in the market.

Consumer buying power also represents a key threat in the industry. The rivalry between Pepsi

and Coke has produce a very slow moving industry in which management must continuously

respond to the changing attitudes and demands of their consumers or face losing market share to

the competition. Furthermore, consumers can easily switch to other beverages with little cost or

consequence.

Product Life cycle:

When referring to each and every product or service ever placed before the consumer i.e. in the

long term all the existing products and services are dead. For e.g.:- Replacement of Ford Cortina

( a highly successful car) by Ford Sierra, the replacement of sierra by the Ford Mondeo and the

replacement of the old Mondeo by the new Mondeo in 2001. So every product is born, grows,

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matures and dies. So in the commercial market place products and services are created, launched

and withdrawn in a process known as Product Life Cycle.

To be able to market its product properly, a business must be aware of the product life cycle of

its product. The standard product life cycle tends to have five phases: Development,

Introduction, Growth, Maturity and Decline. Coca-Cola is currently in the maturity stage, which

is evidenced primarily by the fact that they have a large, loyal group of stable customers.

Furthermore, cost management, product differentiation and marketing have become more

important as growth slows and market share becomes the key determinant of profitability. In

foreign markets the product life cycle is in more of a growth trend Coke's advantage in this area

is mainly due to its establishment strong branding and it is now able to use this area of stable

profitability to subsidize the domestic Cola Wars.

Insert the picture of the product lifecycle

Marketing Objectives

The objective is the starting point of the marketing plan. Objectives should seek to answer the

question 'Where do we want to go?'. The purposes of objectives include:

-> to enable a company to control its marketing plan.

-> to help to motivate individuals and teams to reach a common goal.

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-> to provide an agreed, consistent focus for all functions of an organization.

All objectives should be SMART i.e. Specific, Measurable, Achievable, Realistic, and

Timed.

Specific - Be precise about what you are going to achieve

Measurable - Quantify you objectives

Achievable - Are you attempting too much?

Realistic - Do you have the resource to make the objective happen (men, money, machines,

materials, minutes)?

Timed - State when you will achieve the objective (within a month? By February 2010?)

1.Market Share Objectives:

To gain 60% of the market for soft drink industry by September 2007.

2.Profitability Objectives:

To achieve a 20% return on capital employed by August 2007

3. Promotional Objectives

To increase awareness of the product on the market.

4. Objectives for Survival

To survive the current market war between competitors.

5. Objectives for Growth

To increase the size of the worldwide Coca Cola enterprise by 10% .

Selecting Target Market

Once the situation analysis is complete, and the marketing objectives determined, attention turns

to the target market. The soft drink market is very large, and the business cannot be “all things to

all people”, so it must choose which market segments have the greatest potential. The target

market is the group of customers on whom the business focuses attention. The target market is

where Coca Cola focuses its marketing efforts as it feels this is where it will be most productive

and successful. The target market for Coca cola is very wide as it satisfy’s the needs for many

different consumers, ranging from the healthy diet consciousness through Diet Coke to the

average human through its best selling drink regular Coke. Most Coke products satisfy all age

groups as it is proven that most people of different age groups consume the Coca Cola product.

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This market is relatively large and is open to both genders, thereby allowing greater product

diversification.

There are four broad ways which Coca Cola can segment its market:

-> Mass marketing

-> Concentrated marketing

-> Differentiated marketing

-> Niche marketing

The most apparent method used by Coca Cola is with no doubt the differentiated marketing

method as Coke satisfies’s a range of different markets. Diet coke satisfy’s the weight

consciousness, regular coke, sprite, fanta the average human, coffee, iced tea etc. Each group of

beverages satisfy a particular group of people but majority the average human.

Developing the Marketing Mix

The marketing mix is probably the most crucial stage of the marketing planning process. This is

where the marketing tactics for each product are determined. The marketing mix refers to the

combination of the four factors (price, promotion, product, place) that make up the core of a

business’s marketing strategy. In this step of the marketing planning process, marketing mix

must be designed to satisfy the wants of target markets and achieve the marketing objectives.

The most successful businesses have continually monitored and changed their marketing mix due

to respective internal and external factors and have monitored the external business environment

in order to maximize their marketing mix components.

Product:

Many Products are physical objects that you can own and take home. But the word product

means much more than just physical goods. In marketing, product also refers to services, such as

holidays or a movie, where you enjoy the benefits without owning the result of the service.

Businesses must think about products on three different levels, which are the core product, the

actual product and the augmented product. The core product is what the consumer is actually

buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks.

The actual product is the parts and features, which deliver the core product. Consumers will buy

the coke product because of the high standards and high quality of the Coca Cola products. The

augmented product is the extra consumer benefits and services provided to customers. Since soft

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drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a

help line and complaint phone service for customers who are not satisfied with the product or

wish to give feedback on the products.

Positioning

Once a business has decided which segments of the market it will compete in, developed a clear

picture of its target market and defined its product, the positioning strategy can be developed.

Positioning is the process of creating, the image the product holds in the mind of consumers,

relative to competing products. Coca Cola and Franklins both make soft drinks, although

Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning

helps customers understand what is unique about the products when compared with the

competition. Coca Cola plan to further create positions that will give their products the greatest

advantage in their target markets. Coca Cola has been positioned based on the process of

positioning by direct comparison and have positioned their products to benefit their target

market. Most people create an image of a product by comparing it to another product, thus

evident through the famous battles between Coca-Cola and Pepsi products.

Branding

It is often hard to say exactly why we buy one company’s product over another. Companies such

as Nike and Adidas spend large amounts of money trying to win consumers away from their

competitors who make products that are very similar. The popularity of the brand is often the

deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting

their brand name, resulting in worldwide recognition. 'Coca-Cola' is the most recognized

trademark, recognized by 94% of the world's population and is the most widely recognized word

after "OK". Coca Cola’s red and white colours and special writing are all examples of world-

wide trademarks.

There are a number of branding strategies: Generic brand strategy, Individual brand strategy,

Family brand strategy, Manufacturer’s brand strategy, Private brand strategy and Hybrid brand

strategy. Coca Cola utilizes the Individual brand strategy as Coca Cola’s major products are

given their own brand names e.g. Fanta, Sprite, Coca Cola etc although they may be presented as

different lines they operate under the name of Coca Cola.

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DATA PRESENTATION & DATA ANALYSIS

1. Do you like the taste of coca cola product series?

no of consumer PercentageYes 42 84%No 8 16%

INTERPRETATION:

After survey we found that, 84% customer like the taste of the coca cola product series.

And 16% customer are dislike coca cola product . The consumer of Coca Cola is increasing day

Per day.

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2. Does your purchasing decision affected by the brand name coca cola product series?

No of consumer PercentageYes 37 74%No 13 26%

Interpretation:

After survey we found that, Mostly youth says yes… 74% customer’s decision change due to

awareness of the coca cola product series. And 26% customer’s decision do not change because

they do not know about of the coca cola product .

3. What is the opinion about the price policy of coca cola product series?

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No of consumer PercentageYes 38 76%No 12 24%

Interpretation:

Most of the youth says, it is quite cheap because consumer is using more Coca Cola product, it is very cheap 76% and who do not know price policy of this product, and they assume expensive Coca Cola product. So Coca Cola product more cheap other products.

4. For what purpose you buy the coca cola product series?

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No of consumer PercentagePersonal use 28 56%Business use 13 26%General use 6 12%Any other use 3 6%

Interpretation:

Most of the people say for personal purpose because 56% use in personal and 26% use in business, 12% use in general purpose and 6% use in other purpose, So more then use in personal.

5. Have any consumers faced any problem regarding the taste of coca cola product series?

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No of consumer PercentageYes 16 32%No 34 68%

Interpretation:

Most of the youth says, there is no problem with taste of coca cola product series. But 32% say yes, according 32% consumers have not good views upon the Coca Cola taste. And 68% consumer have the good views upon Coca Cola taste.

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6. How does coca cola product series have consumer relations?

No of consumer PercentageSatisfaction 41 82%Unsatisfaction 9 18%

Interpretation;

Most of the youth says, it is satisfactory. But 18% consumers are not satisfy because some other product available in market due to this reason 18% consumers have not satisfaction and 82% consumers have satisfaction.

7. Are you satisfy with coca cola product series?

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No of consumer Percentage

Yes 38 76%

No 12 24%

Interpretation;

Most of the youth are satisfy with coca cola product series.

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CONCLUSION

This survey was done to indentify various problem an level of identify various problems and level of satisfaction of consumer, so that efforts might done to satisfy them which would result in building long term relationship between the customer and company. Due to delivery in customer need and expectations, it become a different task to satisfy every customer, therefore to satisfy each and every customer the important of building relationship with them existed. For this purpose a number of questions were asked to find out behavior of customer. This research is also done to know the views of the customer towards the services and quality and supply chain management of coca cola product series.

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FINDINGS

After the survey we found the satisfaction level of coca cola product is very high.

Most of the consumers go for the coca cola product because of its finest taste.

Youth feel very comfortable with it.

Coca cola product has been covering the entire segment.

Coca cola product technology is very innovative.

A very high segment of youth goes for the name and goodwill of the coca cola product.

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RECOMMENDATION

The company should increase their service stations.

More financing option should be available.

The company should provide more customer value.

Follow up should be increased.

Effort should be done for developing the concept of good relationship with consumers.

Special offer should be provided the coca cola product.

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BIBLIOGRAPHY

Name of books:

Marketing Management _ Philip Kotler,,

Marketing Research – Naresh K. Malhotra

A. Research methodology _ C.R. Kothari

Magazines & Newspapers

Literature from the web site :

URL www.wikipedia.org

URL http://www.cocacolaindia.com

Authorized dealer in a city,

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ANNEXURE

1. Education

[ ] Undergraduate [ ] Post graduate

[ ] Graduate [ ] Professionally Qualified

2. Occupation

[ ] Businessman [ ] Private Job

[ ] Government Official [ ] Any Other

3. Do you have knowledge about the different Coca Cola product?

[ ] Yes [ ] No

4. Which Coca Cola product do you like?

[ ] Coca-cola [ ] Pepsi

[ ] Merinda [ ] Other

5. In summer which thing gives you satisfaction?

[ ] Coca-cola [ ] Fast food

[ ] Other

6. Do you prefer any other product beside Coca Cola?

[ ] Yes [ ] No

7. Which drink you choose to satisfy your need?

[ ] Coca cola [ ] Pepsi

[ ] Mineral [ ] Other

8. Is the nearly availability of product affected your decision?

[ ] Yes [ ] No

9. Does offer free gift with Coca-Cola product affect your buying decision?

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[ ] Yes [ ] No

10. Does your purchasing decision affected by the brand name of the Coca Cola product?

[ ] Yes [ ] No

11. For what purpose you buy coca-cola product?

[ ] Personal [ ] Business

[ ] general [ ] Any Other

12. What is your opinion about the price policy of Coca-Cola product?

[ ] Expensive [ ] Cheap

[ ] Any other

13. Have you faced any problem regarding the taste of the Coca-Cola product ?

[ ] Yes [ ] No

14. Are you satisfy with Coca-Cola product?

[ ] Yes [ ] No

15. Personal profile:

Name : ____________________________________________

Address : ____________________________________________

Telephone No. : ____________________________________________

E-Mail : ____________________________________________

Age :____________ Gender:_______________

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