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Coca Cola brand dossier

Brand Dossier project on Coca cola,
Praxis Business School

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Coca Cola brand dossier

  2. 2. INDEX Pg noPHASE I 04 Inception. 05 Initial positioning and subsequent repositioning. 07 Advertising strategy 09 Sales promotion strategy 17 Segmentation strategy. 20 Analysis of product 22 Generic competition 25 Strategies adopted to tackle competition or prime market expansion 27 Distribution strategy 31 Future directions for the brand 33PHASE II 35 Hypothesis 36 Justification of taking the hypothesis 36 List of information required to be collated 362|Page
  3. 3. Instrument of data collection 37 Questionnaire 38 Sample size and sampling plan 40 Methods of Data Analysis 40PHASE III 41 Analysis of primary research 42NET TAKEAWAY 50 Bibliography 513|Page
  4. 4. PHASE I4|Page
  5. 5. INCEPTION Coca Cola was invented by Dr John.S.Pemberton (pharmacist from AtlantaGeorgia) in May 1886. He concocted the formula in his backyard. Carbonated waterwas added to syrup to make it a refreshing drink. The flowing letters which hasbecome the logo of the company today is the gift of Frank Robinson (bookkeeper ofDr Pemberton). Till 1905 the drink was served with cocaine & was supposed to bethe remedy for headache. In 1887 Asa Candler (another pharmacist from Atlanta Georgia) bought theformula from Dr Pemberton for 2300$. Due to his aggressive marketing strategyCoca Cola‟s sale went up by 4000% between 1890 and 1900. By the turn of the 20 thcentury the product was being sold in US & Canada. In 1915, Pepsi went for bankruptcy & was offered to Coca Cola to take overas it was the only other major soft drink in the country. But Coca Cola didn‟taccepted that offer as they thought it to be a liability to take over a loss makingcompany. A blunder that haunts Coca Cola till date. Coca Cola elevated itself from just a product to a symbol of patriotism duringWorld War-II when they decided to sell the drink to the military men for 5 cents perbottle (thereby obtaining the license of unlimited cultivation of sugar). This made itthe drink of America.5|Page
  6. 6. In 1963, Pepsi positioned itself as a product of youth. The strategy was soinfluential that it became like a trend in US that a person with a bottle of Pepsi in hishand was considered to be hip identifying himself as a new age American & aperson with a bottle of Coca Cola in his hand was considered to be orthodox old ageAmerican. Coca Cola identified this trend & again invoke the patriotic sentiments ofthe American by identifying itself as the drink of America which helped them retrievethe market which was lost to Pepsi. In 1985, Coca Cola did something unthinkable. They changed the taste ofCoca Cola & the new product was launched in the name of Coca Cola refresh. Thestrategy failed big time as there was not only drop in the sales but there was widespread feeling of dissatisfaction among Americans who proclaimed that Coca Colahad robbed the drink of America. The issue was finally settled, as they re-launchedCoca Cola in the name of Coca Cola classic.6|Page
  7. 7. INITIAL POSITIONING & REPOSITIONING Dr John Pemberton initially positioned Coca Cola as a medicine for headachewith a refreshing taste. Subsequently, Asa Candler bought the formula &aggressively marketed the product & made it available in local bars & parlour. Hebought the drink at the “arm length‟s distance” for the consumer. But there was onemajor problem, the drink was still considered as a medicine & a drink which isconsumed with cocaine. It took more than a decade of advertisement beforeconsumer accepted the product as a beverage which can be consumed any time. In 1931, Coca Cola introduced Santa Claus to aid there promotion. Apart fromre-instating the fact that the drink is a symbol celebration & should be enjoyed withthe happy moments it also positioned itself as a drink which can be consumed evenin winter(as Christmas falls in winter in most parts of the world) there by making it asa drink which can be consumed in any time of the year. The strategy to distribute the drink to the military personnel at 5 cents perbottle & making it available to all military personal deployed anywhere in the world,7|Page
  8. 8. during World War II transformed Coca Cola from a product to a symbol of patriotismin the United States. In India Coca Cola was 1st launched in the late 1970‟s. But FERA Act (1973)compelled them to discontinue their operations in India. In early 1990‟s in the newliberalized Indian economy, Coca Cola came back with vengeance, acquiringdominant market brands like Thumps up (a product of RPG) laying a platform for itsoperations in India. Initially, it targeted the high income group with high price & eye catchyadvertisement. Later it repositioned itself as a drink for the masses and slowly as thecost of operations became cheaper it penetrated the market of middle & lowermiddle income group with the reduction in price. It has distinctively positioned itself in urban & rural India. With the yawningmind-set gap between the two markets, Coca Cola in urban India has positioneditself as a symbol of style & celebration, while in rural India it is essentially a productwhich quenches thirst.8|Page
  9. 9. Advertisement Strategy “125 years of sharing happiness” this line itself defines how big the brandCoca-Cola is. The brand has evolved with time and thus with respect to time itsadvertisement strategy has also changed. As the company has a global market sothe advertisement strategy followed by Coca-cola was different in differentcountries. But it also had to keep in mind the global advertisement strategy whilecreating an advertisement for a specific country so that both the two advertisementstrategy does not clash with respect to the message it wants to convey. There is a remarkable story about the evolution of an iconic brand and thecompany that bear its name. Since its birth Coca‑Cola has been a catalyst for socialinteraction and inspired innovation. These unique moments in history, arranged inchronological sequence, have helped create a global brand that provides billions ofmoments of refreshment every day.Advertisement strategy during 1880’s: At the inception Coca-Cola was a tonic which used to cure headache and thusit was advertised as “The ideal brain tonic”.Advertisement strategy during 1890’s: In order to make it a mass product it‟s medicinal qualities was not highlightedbut it was positioned as a beverage which was delicious and refreshing. The tag lineused was “Drink Coca-Cola -- delicious and refreshing -- 5 cents at all soda fountainsAdvertisement strategy during 1900’s: Music hall performer Hilda Clark becomes the first celebrity to appear inmultiple advertising formats, including trays, posters and even bookmarks (1900).This was the first time that Coca-Cola used a celebrity in their campaigning. And thiswas a land mark in the advertisement industry as it lead to the concept of celebrityendorsement. And thus in 1904 Lillian Nordica, noted opera singer, endorsedCoca‑Cola which was nationwide advertisement.9|Page
  10. 10. In 1901 the advertising budget surpassed $100,000 for the first time. The first advertising for Coca‑Cola appeared in national magazines in 1904. The 1900‟s is noted in the history of Coca-Cola in a different way because itwas the time when Coca-Cola advertised hugely to position itself as a qualityproduct. The tag lines used were- “Good All the Way Down”; “Good to the LastDrop”; “Palate Pleasing”. Thus it helped in growth of Coca-Cola to 1 million-gallon mark.Advertisement strategy during 1910’s: During this period Coca-Cola was trying to position itself as a social drink thatquenches thirst. The tag line used during that period were “A Welcome Addition toAny Party”; “The Thirsty One‟s Best Beverage”; “3 Million a Day”; “Enjoy a Glass ofLiquid Laughter”Advertisement strategy during 1920’s: Coca-Cola was previously positioned as a summer drink. So in order toexpand its market it positioned itself as a drink which can be taken any time torefresh own self. The tag lines were “Thirst Knows No Time Nor Season”; “ThePause that Refreshes”. In 1925 outdoor billboards were introduced as part of the advertising mix. In 1927 The Company sponsored its first radio program, “Vivian theCoca‑Cola Girl.”Advertisement strategy during 1930’s:10 | P a g e
  11. 11. In this phase Coca-Cola tried to position itself as a necessity which quenchesthirst and is always beside you when required (indirectly implied its distribution isstrong all over the country). The tag lines used were “The Best Friend Thirst EverHad”; “Coca‑Cola Goes Along”; “Whoever You Are, Whatever You Do, WhereverYou May Be, When You Think of Refreshment, Think of Coca‑Cola” In 1931 Coca-Cola tried to create an advertising program that linksCoca‑Cola with Christmas to increase the sales of Coca-Cola during winters. ArtistHaddon Sundblom was hired for it and he thus created his illustration showing SantaClaus pausing for a Coke saying “Ice Cold Sunshine”. The advertisement became sofamous that for the next three decades, from 1931 to 1964, Sundblom paintedimages of Santa became the face of Coca-Cola, specially during the christmas.11 | P a g e
  12. 12. Advertisement strategy during 1940’s: Coca-Cola made a major breakthrough in the market by associating coke andCoca-Cola as similar product through advertisement. The Sprite Boy character wasintroduced in advertising to convey the message that “Coca‑Cola” and “Coke” aretwo terms that refer the same product. They didn‟t stop at here, they marketed Coca-Cola as “The Only Thing Like Coca‑Cola Is Coca‑Cola Itself”. The world was going through World War 2 during this phase and Americansoldiers were spread all over the world during this time. 1943 The U.S. governmentrequests that Coca‑Cola be made available to the troops. Robert Woodruff pledged toprovide Coke to the military for a nickel regardless of what it costs the company toproduce the product. During the war, Coca-Cola provided the troops with Coca-Colato refresh them. And the company advertised its patriotism through tag lines such as“Where There‟s Coke, There‟s Hospitality”; “My old friend coke”. Thus Coca-Colawas being automatically associated as the drink of the true Americans.12 | P a g e
  13. 13. Advertisement strategy during 1950’s: In 1950 The first television commercial for Coca‑Cola was broadcast onThanksgiving Day on a CBS half-hour special featuring Edgar Bergen and CharlieMcCarthy. During this phase Coca-Cola was portrayed as a taste enhancer and thus thetag lines were“Coca‑Cola Makes Good Things Taste Better”; “Sign of Good Taste”Advertisement strategy during 1960’s: In 1963 “Things Go Better with Coke” advertising campaign became a hugehit. On the radio, pop singers like The Supremes, Ray Charles, Aretha Franklin, Janand Dean, Roy Orbison and The Coasters used their unique musical styles to swingthe jingle. On television, celebrities like football star Joe Namath, designer AnneKlein, golfer Arnold Palmer and jazz vocalist Barbara McNair endorsed Coca‑Cola.In 1969 the launch of the new slogan “It‟s the Real Thing” ushered in a newadvertising look for brand Coke. And thus again was telling customers that “Coca-Cola” means “coke”13 | P a g e
  14. 14. Advertisement strategy during 1970’s: During this period advertisement like “Coke Adds Life” made it clear to itscustomer that by having a bottle of Coca-Cola people gets energy and enthusiasm toperform. The advertisement portrayed Coca-Cola as the drink which the sportsmendrink.Advertisement strategy during 1980’s:14 | P a g e
  15. 15. In 1980 a Coca‑Cola contour bottle became the central focus of the movie“The Gods Must Be Crazy.” “Coke is it”; “Catch the wave”; “You can‟t beat the felling” were theadvertisement which Coca-Cola used to make non Coca-Cola drinkers to go with thecrowd.Advertisement strategy during 1990’s: In 1993 the popular Coca‑Cola polar bears were introduced in the commercial“Northern Lights.” This was done to remind people that people can drink Coca-Colaeven during winters as the polar bears do. In 1996 the Centennial Olympic Games were held in Atlanta. The Coca‑ColaCompany created Coca‑Cola Olympic City as a way to entertain fans. This again ledto worldwide coverage of Coca-Cola in television.Advertisement strategy during 2000’s: “Open Happiness ” is the modern generation slogan of Coca-Cola whichportrays Coca-Cola is attached with happiness .15 | P a g e
  16. 16. Advertisement strategies in India In India Coke‟s advertising strategy pulled the marketing plan together usinglocal language and idiomatic expressions in 2001. “Thanda,” meaning cool/cold isalso generic for cold beverages and gave “Thanda Matlab Coca-Cola” deliciousmultiple meanings. Literally translated to “Coke means refreshment,” the phrasedirectly addressed both the primary needof this segment for cold refreshment whileat the same time positioning Coke as a “Thanda” or generic cold beverage just liketea, lassi, or lemonade. The next advertisement tag line was "Pio sar utha ke" which means "Drinkwith pride" Then came the "Jo chaho ho jaye, Coca-Cola enjoy!" advertisement whichmeans "Whatever you wish will come true, enjoy Coca-Cola!" In rural India advertising the product was a major problem as there was noelectricity to promote the product through television commercials. They also cannotuse newspaper as majority of the people were illiterate and thus they neverpurchased the newspaper. So the company chose wall painting to advertise itself.They also use public transport to advertise itself by painting the vehicle with Coca-Cola symbol.16 | P a g e
  17. 17. Sales Promotion Strategies A. Consumer promotionsDistribution of free coca cola- Coca-Cola provides free sample of coca cola to people to increase theconsumption of it. They do it either by distribution of free coupons or as a surprisegift under the cork of the bottle. In 1887 coupons were first used to promote Coca‑Cola. This created a huge roar and within few days coca cola became popular Recently the coca cola company during the IPL 4 promoted their product through the “Brrr..” promotion campaign where it gave its consumers a bottle of coca cola if they get “Brr…” sign under the corkDistribution of Flicker card and signature ball or bat –17 | P a g e
  18. 18. During the 1999 cricket world cup flicker cards of Sourav Ganguly hittingSahid Afridi a six and Javagal Srinath doing a clean bold or a signature mini bat bySourav Ganguly or signature ball by Javagal Srinath was given if a consumerreturned back few coca cola labels to the retailerDistributing placard, caps, etc. during match- Coca-Cola distributes placards, caps, etc. to the spectators outside thestadium just before a match starts and thus creates a sporting mood among thespectators. These placards/caps are sometimes used by the spectators to savethemselves from direct sunrays during the match. B. Trade PromotionAdditional bottle(s) per crate- The retailer instead of case/trade discount is given 1/2/3 bottles extra witheach case of coca cola purchased. Thus the company pushes the retailer topurchase more of coca cola and stock it instead of purchasing its competitorsproduct.Providing with display refrigerator- The company provides the retailer a refrigerator at a discounted price if it isable to purchase a certain amount of crates within a stipulated time.Providing Subsidy to the distributor to purchase distribution vehicle- In order to distribute coca cola the distributors required distribution vehicles.But the costs are huge. So the company sometimes uses to help the distributorthrough partial financing.18 | P a g e
  19. 19. Distribution of T-shirt- Free T-shirts were given to the salesmen to promote coca cola. And thesalesmen are normally hired as per time basis during any particular occasion orcampaign. So the salesmen get a t-shirt along with money as per day basis.Display- The company gives cash discount to the retailers for displaying the product inproper coca cola racks. Both the company and the retailer gets benefit from theracks as it provides a temporary store display. In April 2011 the company came outwith fully recyclable coca cola racks.Contests- Coca-Cola provided its retailers with gifts if they are able to meet the target ofselling a desired amount of crates in a given time. Similarly it provides its distributors with cash dicount of Re 1/crate if they wereable to meet the target of selling a desired amount of crates in a given time.19 | P a g e
  20. 20. SEGMENTATION STRATEGY Coca cola serves its products using mass marketing technique, whichobviously falls in undifferentiated marketing, and undifferentiated marketing meansno segmentation, but there are minor factors on which we can say that the cokesegments its products and then targets the customers somehow. These factors areas follows.GEOGRAPHIC SEGMENTATION Coke segments its products country wise and region wise, here the mostimportant thing is the taste and the quality, it varies according to the taste and theincome level of the people in that country, and i.e. Third world counties are given lowquality taste. Coca Cola Company tries to satisfy the needs of a whole line ofdifferent people. They have drinks that target different, age groups, ethnic groups,sexes, lifestyles, etc.There are some of the different brands: Minute Maid Minute Maid targets kids and adults, ages 1-10 and 40+. This drink isconveniently packaged to take with you on the go anywhere. The health check ispart of the reason for the wide target market, parents want their kids to be healthyand so knowing that this product is accepted by such a well knownrespected company pleases the parents and gives them a sense of relief. Coca Cola The Coca Cola drink is by far there most successful drink. It is very popularamong many different nations. It is a soft drink. Because of the huge demand for thecoca cola drink, and the trend towards healthier lifestyles coca and begun to producespin-offs of the coca cola product. They have made drinks such as coca cola zero,coca cola diet, coca cola C2, coca cola with lime etc. By having all these differentdrinks with the same basic taste they are able to target a much bigger market. Dueto the large success of the drinks coca cola is in demand worldwide. As such theCoca Cola brand is sold in most countries in the world. Coca Cola Zero This drink is specifically targeted at teens that don‟t want the calories that comewith coke but want to same great taste. This Product is sweetened with aspartame. Coca Cola Diet The diet drinks are targeted at adults of ages 30-50, who are health consciousbut still love the great taste of coke. This drink is sugar less.20 | P a g e
  21. 21. Sprite This is a soft drink that has many different target markets. This product has adifferent taste then coke all together and is not as popular but it is still a very populardrink. Like coke it also has a whole other line of drinks associated with it, such asdiet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in manyplaces worldwide.CLIMATIC Weather is the second major factor in effecting the Coke‟s selling. In cokemarketing, main idea is to serve it cold, so we can say that, they focus more on hotareas of the world, i.e. middle east etc and there sale increase in summer. This is underdeveloped market so the coke‟s consumption in summers is 60%and in winters is 40%.. It is a source of refreshment when a person is thirsty due tothe hot weather. PepsiCo India, has entered the energy drinks sector with the launch of leharGluco Plus in Maharastra, pre-empting Coke‟s proposed entry into this sector. LeharGluco, priced at Rs. 5 (200 ml cup), has been developed in India keeping in mindIndian taste preferences. The ready-to-drink beverages sector in India is pegged at roughly Rs. 2000crore, dominated by Coke, Pepsi, Amul and Nestle. PepsiCo India was also gearing up to launch the new avatar of Lipton Ice Tea(ready-to-drink beverage) in glass and PET bottles with its joint venture withHindustan Unilever (HUL). Currently, PepsiCo was test marketing its relaunched Lipton Ice Tea in Delhi.On the other hand, PepsiCo‟s arch rival, Coke, with its joint venture with Nestle, hasrecently introduced its global ready-to-drink ice tea brand „Nestea‟ in Mumbai to startwith. In addition, Coke and PepsiCo were betting big on digital and high-voltagetelevision campaigns to woo new consumers. Currently, PepsiCo India is fine-tuning its pricing and marketing strategy topromote its new launch Lipton Tea in PET as well as glass bottles.21 | P a g e
  22. 22. ANALYSIS OF PRODUCT Coca -Cola is the world‟s largest beverage company. The company is theworld‟s leading manufacturer, marketer and distributor of non-alcoholic beverageconcentrates and syrups. It produces nearly 400 beverage brands. The company makes and distributessoda, water, fruit juice, teas and energy drinks. Though the world‟s largest beverage distribution system, consumers in morethan 200 countries drink the company‟s beverages at a rate exceeding 1.5 billionservings per day.Major product includes:- Coca-Cola Diet Coke Sprite Minute Maid (Pulpy orange and Nimbu fresh) Fanta Limca22 | P a g e
  23. 23. Maaza Nestea Kinley water Kinley soda BurnIngredients of Coke Carbonated water Sugar (sucrose or high-fructose corn syrup depending on country of origin) Caffeine Phosphoric acid Caramel colour (E150d) Natural flavouring A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all fromsugar, approximately 10 teaspoons),50 mg of sodium, 0 grams fat, 0 gramspotassium, and 140 calories.SWOT ANALYSIS23 | P a g e
  24. 24.  STRENGTHS• Coca-Cola has a worldwide market• Coca-Cola has a good product portfolio.• It is the market leader in soft drink industry.• Strong marketing and advertising• Coca Cola was the first commercial sponsor of Olympic Games and it has beensponsoring the FIFA and cricket world cup events.• Coca Cola has been featured in movies such as The Coca Cola Kid; God must becrazy and others which were huge hits.• The taste of Coca-Cola is admired all over the world.• Strong Financial reserves and returns  WEAKNESSES Customers are not being able to differentiate among few brands such as Coca Cola Zero and Diet Coke It highly relies on the product Coca-Cola Supply of most of the product under Coca-Cola is restricted to few countries  OPPORTUNITIES Growing demand for packaged drinking water People becoming brand conscious Can launch other Coca-Cola variants in the untapped countries.  THREATS Intense competition in the beverage market People becoming health conscious24 | P a g e
  25. 25. Generic Competition PEPSICO "The Choice of a New Generation." Pepsi gives tough fight to Coca-Cola with almost similar investment, advertisement strategies and products. It provides carbonated drinks, fruit drinks and packaged drinking water. It also has a snack product line including Lays, Cheetos and Quaker oats.COKE PEPSI  Market leader  Market challenger  Govt. Patronage in world war-II  Initial ups and down  Larger global presence  Good presence in few countries The company‟s product includes Pepsi, Mountain Dew, Tropicana juice,Aquafina water, Lipton ready to drink tea and Slice.25 | P a g e
  26. 26. Pepsi and Coca-Cola hold together, a market share of 95% out of which60.80% is held by Coca-Cola and the rest belongs to Pepsi. Market Share of Soft Drinks Cocacola PepsiCo others THUMS UP “Taste the thunder” Strong cola taste Exciting personality It is a leading carbonated soft drink and most trusted brand in India. Thums up was introduced by the Chauhan brothers, Ramesh and Prakash, in 1977 Known for strong, fizzy taste and its confident, mature and uniquely masculine attitude 1993, when Coke entered India, Thums Up had a 36 per cent market share versus 26 per cent for Pepsi In the same year Coke bought Thums up26 | P a g e
  27. 27. Strategies adopted over time by the brand totackle competition or prime market expansion From the very beginning, Coca-Cola understood the importance of brandingand creation of a distinct personality. Its catchy, well liked slogans “the real thing”(1942), “things go better” (1963), “Coke is it” (1982), etc. linked that personality to thecore value of each generation and established Coke as the authentic and trustedrefreshment of choice across the decades and around the globe.International ExpansionCoca-Cola‟s 1st International bottling plants opened in 1906 in Canada, Cuba andPanama. By the end of 1920s Coca-Cola was bottled in 27 countries. Inspite of thisreach, volume was low, quality inconsistent and effective advertisement was achallenge with language. Former CEO Robert Woodruff suggested to use localbottles, caps, machinery, trucks, etc. to gain local confidence. Coca-Cola continuedto work for over 80 years on this phenomenon to make coke available “in arms reachof desire”. During the 2nd World War, Woodruff made a statement that every man inuniform gets a bottle of Coca-cola for 5 cents. As a result of Coke‟s status as amilitary supplier, coca-cola was expected from sugar rationing and also receivedGovernment subsidies to build bottling plants around the world to serve World War IItroop. This also made Coke as a energy drink and moreover his market shareincreased at a rapid rate.COKE IN INDIA Coke returned to India after 16 years after it was pushed out of the country in1977 by Janta Party Government. Coca-Cola re-entered in 1993, cementing itspresence by acquisition of local popular Indian brands including Thumpsup (the mosttrusted brand in India). But by this time Pepsi (Coke‟s biggest competitor) had27 | P a g e
  28. 28. already gained the precious early experience with the Indian market. Though Cokebenefited from Pepsi, creating demand and developing the soft drink market, Pepsigave Coke a disadvantage in the mind of the consumers. Pepsi appealed the youthof India and Coke approached the market selling an “American way of life” whichfailed to resonate as expected. Therefore in 2001, Coca-Cola‟s CEO Douglas Draft set the directions for thenext generation of success for his global brand with a “Think local, act local” mantra.In 2001, after almost a decade of lagging rival Pepsi in the region, Coke India re-examined its approach and tried to plug the loop holes to gain leadership in theIndian market.Coca-Cola started their new strategy with two objectives:● Brand positioning● Marketing communication Coca-cola through its survey understood that Urban India and Rural Indiawere two distinct markets on a variety of important dimension. The soft drinkscategory‟s role in people‟s lives depends upon how Urban and Rural consumersapproach the market for refreshments. Coca-cola had to work very hard in Rural market as the soft drink categoryand individual brands were undeveloped. Their main task here was to broaden thebrand positioning, whereas in Urban market, both the category and the brand wasdeveloped. Their main focus here was to differentiate its product from Pepsi andother competitors through offering unique and compelling value.28 | P a g e
  29. 29. BRAND LOCALIZATION STRATEGY : Coca-cola divided India into categories-India A and India B.● India A: “LIFE HO TO AISI” India A represented the metropolitan areas, who always celebrates the benefitof their increasing social and economic freedoms. “Life ho to aisi” (life as it shouldbe) was the successful and relevant tagline found in Coca-cola advertising to thisaudience.● India B: “THANDA MATLAB COCA-COLA” India B represented the rural market. India‟s Rural market always referredrefreshments as “thanda”. The advertising and promotion strategy pulled themarketing plan together using local language and idiomatic expressions. “THANDA”means cool, literally translating “thanda” to Coke, and sending a message “Cokemeans refreshment”. For this Coca-cola even won advertisement of the year andcampaign of the year in 2003.STRATEGY TO INCREASE SALES AND MARKET SHARE29 | P a g e
  30. 30. Soft drinks costing Rs 10 was a luxury item for a person who earns Rs 100per day. So in an effort to make the price of Coke within reach of this section of thesociety, Coke introduced a new 200 ml bottle at half the price i.e., Rs 5. This pricing strategy closed the gap between Coke and basic refreshmentslike lemonade and tea, making Coke truly accessible for the first time. Cokeexperienced 37% growth in Rural market and 24% growth in Urban market in theyear 2003.30 | P a g e
  31. 31. DISTRIBUTION STRATEGY As on March 2000 Coca Cola have 13 bottling plants across India. The followingare the places where they are located (In order of completion):- 1. Hyderabad 2. Bangalore 3. Vijayawada 4. Goa 5. Delhi 6. Jaipur 7. Siliguri 8. Vizag 9. Delhi-Expansion 10. Orissa 11. Wada, Mumbai 12. Chennai 13. Pune These bottling plants are authorised to prepare, packaged & sell the finishedproduct to authorised distributors who then distribute it to a chain a chain of more700,000 retailers, supermarkets, restaurants & other business throughout the length& breadth of the country. The same channel is used to transport the empty bottle ofCoca Cola from a consumer to the bottling plant. BOTTLING PLANT DISTRIBUTORS RETAILERS CONSUMERS31 | P a g e
  32. 32. In rural area the distribution network is slightly different from its urbancounterpart. The bottling plant transport the bottles to hubs then it goes to spokesthen to retailer before reaching in the hands of consumer. BOTTLING PLANT HUBS SPOKES RETAILERS CONSUMERS For refilling the empty bottle the distribution channel works similarly but in areverse mechanism.32 | P a g e
  33. 33. Future Direction of the BrandIncreasing the per capita consumption of its beverages Coca-Cola continues its efforts at increasing the per capita consumption of itsbeverages in the country. India PCC currently is at 11 Servings a Year (up from 7 in 2001). This requires acomprehensive activation of the Indian market by addressing acceptability,affordability and availability of its products.Expanding its distribution networks The company had also decided to expand its retail network by 18 per cent duringthe financial year2008-09 taking the total number of retailers to 1.3 million across thecountry.Leading the beverage revolution in India The company continues to build on its foundations in India. While it continues tomaximise its carbonated soft drink potential through various pack, pricing, Occasion-based strategies across town-classes in India.Coca-Cola plans to become water neutral by 2011 Coca Cola, which has made water its focal point of social responsibilityprogramme, claimed to have already achieved groundwater neutrality by last yearthrough ground water recharge activities conducted at various parts of the country.As well as by improving distribution of its water product i.e. Kinley. Global water market by volume Others Pepsico Coca-Cola Danone Nestle 5% 10% 7% 12% 66%33 | P a g e
  34. 34. Special product launch for Cricket lovers Company has planned to launch a new design of coke‟s can after completion ofSachin Tendulkar‟s 100th century.34 | P a g e
  35. 35. PHASE II35 | P a g e
  36. 36. HYPOTHESIS Tagline “Thanda matlab Coca-Cola” is more influential than “Open happiness” Coca-Cola is the first thing that comes to mind when we think of celebration. Coca-Cola is not restricted to a specific age group.JUSTIFICATION OF TAKING THE HYPOTHESIS We are trying to identify which of the tag lines used by Cocacola (“Thanda matlab Coca-Cola” or “Open happiness”) is more effective. Here we are comparing former tagline vs. the later one. There is a trend of providing welcome drink in most of the occasions and we believe Coca-Cola is the most preferable among all welcome drinks. We are trying to infer whether target market of Coca-Cola is restricted to a specific age group (Pepsi relates itself to “youngistan” and Thums up relates itself to “Strong man”)LIST OF INFORMATION REQUIRED TO BE COLLECTEDFROM THE RESEARCH Level of recall of both the taglines i.e. “Thanda matlab Coca-Cola” and “Open happiness”. (Based on this we can conclude hypothesis 1). Level of effectiveness of both the taglines i.e. “Thanda matlab Coca-Cola” and “Open happiness”. (Based on this we can conclude hypothesis 1). Information on preference of drinks during celebrations. (Based on this information we can conclude hypothesis 2). Demographic information of the consumers of Coca-cola. (Based on the representation of different age groups, we will conclude hypothesis 3).36 | P a g e
  37. 37. INSTRUMENT OF DATA COLLECTION Face to face Survey A Particular sample size is chosen and Questionnaires are distributed to understandthe perception of consumers about the product. Online SurveyIn this technique a survey is conducted online by uploading the questionnaire on theinternet which enables to capture a versatile sample.. In this we obtain informationby receiving responses either by mail or through social networking site. It is usedwhen there is geographical constraint. Internet is a platform with variety of users ofdifferent age group, so it will be beneficial for us as want sample consisting ofdifferent age group.37 | P a g e
  38. 38. QUESTIONNAIRE1. Do you consume Coca-Cola? (Hypothesis 3) Yes No2. If yes, how often do you consume Coca-Cola? (you can tick multiple options) (Hypothesis 2) a. Daily / Regularly b. In parties and other such occasions c. Rarely3. Which tag line of Coca-Cola do you recall the most? (Hypothesis 1)4. How much the taglines given below connect itself with Coca-Cola? (Rate on ascale of 1 to 5. 1 being the lowest and 5 being the highest (Hypothesis 1) a. Thanda matlab Cocacola 1.__ 2.__ 3.__ 4.__ 5. __ b. Open happiness 1.__ 2.__ 3.__ 4.__ 5.__5. a. Could you relate Coca-Cola with any of the happy moment of your life?(Hypothesis 2) Yes No b. If yes specify: ………………………………………………………………...38 | P a g e
  39. 39. 6. Among the following which one will you prefer as welcome drink. (Hypothesis2) Cold drinks Blossoms Mock-tails Others (please specify)..........................................................7. If cold drink which among the following, will you prefer as welcome drink (Hypothesis 2) Coca-Cola Pepsi Thumps up Sprite Fanta 7 Up Miranda8. Coca-Cola is a drink Consumed by people of all age group (Hypothesis 3) Strongly Agree Agree Neither agree nor disagree Disagree Strongly DisagreeName:Age: 12-20 21-30 31-40 41 above39 | P a g e
  40. 40. SAMPLE SIZE AND SAMPLING PLAN Sample Size : 150-200Sample size of 150-200 people will represent the wide variety of Coca-Cola‟sconsumer. Sampling plan :An age group of 12 and above is chosen, as they are the consumers of Coca-Cola.This sample is chosen by Convenience method of sampling. Convenience sampling is a non-probability sampling technique wheresubjects are selected because of their convenient accessibility and proximity to theresearcher.METHODS OF DATA ANALYSIS – Rating scale (Question 4)Rating scale will help us to elicit both qualitative as well as quantitative data. Graphical representation ( Question 1,2,3,5 6,7)Graphical representation consists of Pie chart and Histogram. It is an analyticalmodel that provides a visual picture of relationship between variables. This will helpto represent data in a systematic and user friendly manner Likert Scale (Question 8) It is a psychometric scale commonly used in questionnaire and is the most widely used scale in survey research, such that the term is often used interchangeably with rating scale. When responding to a Likert questionnaire item, respondents specify their level of agreement or disagreement on a symmetric agrees-disagree scale for a series of statements. We are using Likert scale as it is easy to analyze, easy to collect data and is quick.40 | P a g e
  41. 41. . PHASE III41 | P a g e
  42. 42. PRIMARY RESEARCH 1. Do you consume Coca-Cola? (Hypothesis 3) This question was asked to understand whether people of sample consume Coca-Cola. This will help us to prove Hypothesis 3. Do you consume Coca-Cola? Yes 89% No 11%From the pie chart given above, we can easily understand that 89% of the peoplehave consumed Coca-Cola. 2. If yes, how often do you consume Coca-Cola? (you can tick multiple options) (Hypothesis 2) This question helped us to understand whether consumption of Coca-cola by the people is impulsive or supported by a special occasion. This will help us to prove hypothesis 2.42 | P a g e
  43. 43. How often you consume Coca-Cola? 59.0 60 37.2 50 40 23.1 30 20 10 0 Daily/Regularly In Parties and Other Rarely Such OccasionsNote: People has selected more than one check box so percentage may addupto more than 100From the above given bar diagram, it is clear that people invariably consume Coca-Cola during parties and occasions. (59%) 3. Which tag line of Coca-Cola do you recall the most? (Hypothesis 1) This question was an open ended question. It was done to infer which tagline created the biggest impression in consumer‟s mind. This will help us to prove hypothesis 1. Tag line Recall 80 70 67.4 60 50 40 30 20 17.1 9.1 10 2.9 3.4 0 Thanda Matlab Open Happiness Jo Chahe Ho Jaye Others Cannot Recall Coca Cola Coca Cola Enjoy43 | P a g e
  44. 44. From the above bar diagram, it is clear that “Thanda matlab Cola-Cola” is most recalled tagline by the sample. (68%) 4. How much the taglines given below connect itself with Coca- Cola? (Rate on a scale of 1 to 5. 1 being the lowest and 5 being the highest (Hypothesis 1) This question was asked to know which tagline i.e.(Thanda Matlab Coca-Cola or Open Happiness)connected itself with the brand in the minds of the consumers. This will help us to prove hypothesis 1. a. Thanda matlab Cocacola How much the taglines given below connect itself with Coca-Cola? [Thanda Matlab Coca-Cola] 37.1 26.9 16.6 9.1 10.3 1 2 3 4 5 Here we have used Rating scale and found a large sum of people haverated “Thanda matlab Coca-Cola” as the most connected tagline with the brand. b. Open happiness44 | P a g e
  45. 45. How much the taglines given below connect itself with Coca-Cola? [Open Happiness] 28.0 25.1 18.9 18.9 9.1 1 2 3 4 5Here we have used Rating scale and found that the people were not able to connectwith the tagline ”Open happiness”, as responses are widely scattered. 5. a. Could you relate Coca-Cola with any of the happy moment of your life? (Hypothesis 2)As the brand claims that it is your partner during celebration, we want to know thatdoes the consumer also agree with this claim. This will help us to prove hypothesis2. Could you relate Coca-Cola with any of the happy moment of your life? No 70% Yes 30%45 | P a g e
  46. 46. From the above pie chart, it is clear that people are not able to connect Coca-Colawith happy moment of their life as claimed by the company. c. If yes specify:............. Here we have found out the moments where people have connected their happy moments with Coca-Cola. (30% of the population) Coca-Cola and Happy Moments After Exam 10% Others 17% Friends Family 27% 19% Party Partners 15% 12%Here pie chart shows different type of happy moments celebrated with Coca-Cola. 6. Among the following which one will you prefer as welcome drink. (Hypothesis 2)This question checks out preference of drink for the guests by the sample people.This will help us to prove hypothesis 2. Among the following which one will you prefer as welcome drink? 66.9 27.4 24.0 9.1 Cold drink Blossoms Mocktails Others46 | P a g e
  47. 47. Note: People have selected more than one checkbox, so percentages may add up to more than 100% From the above bar graph, we found out that Cold drink is the most preferred drink for the guests.(67%) 7. If cold drink which among the following, will you prefer as welcome drink (Hypothesis 2) This question was asked to find out which cold drink people prefer in serving their guest Preferred Cold Drink 35 30.9 30 25.1 25 Coca Cola 21.1 20 7up Fanta 15 10.3 Mirandaa 10 6.3 Pepsi 5 3.4 2.9 Sprite 0 Thums upFrom the above bar diagram it is clear that sample people has preferred Coca-Colaamong different cold drink as welcome drink. (31%) 8. Coca-Cola is a drink Consumed by people of all age group (Hypothesis 3) From this question we wanted to find what people think about consumption of Coca-cola by different age group. For this we have taken Likert scale, which will help us to find views of different people.47 | P a g e
  48. 48. Cocacola is consumed by all age group 2% 6% 18% 21% Strongly Agree Agree Neither agree nor disagree Disagree 53% Strongly Disagree It is clear from the above pie chart that people have chosen “Agree” and “Strongly Agree” for the given question. (53% + 18% = 71%) Thus it proves that people agree for the fact that Coca-Cola is consumed by all age group. 9. Age group Here analysis of age of the sample people is done for proving hypothesis 3. In questionnaire people were asked to give information about their age, and analysis is done using that data.48 | P a g e
  49. 49. Age group of sample 12-20 21-30 31-40 41 above 18% 14% 14% 54%Above pie chart shows age group of sample size.49 | P a g e
  50. 50. NET TAKEAWAY HYPOTHESIS 1 Our first hypothesis was Tagline “Thanda matlab Coca-Cola” is more influential than “Open happiness”. From the inference drawn from question no 3 and 4,we have concluded that “Thanda matlab Coca-cola” is indeed more influential tagline than “Open happiness” . Hence hypothesis 1 is correctly proved. HYPOTHESIS 2 Our second hypothesis was Coca-Cola is the first thing that comes to mind whenwe think of celebration. From the inference drawn from question no 2,6 and 7, wehave concluded that Coca-Cola is an integral part of celebrations. But from theinference drawn from question no 5, we can‟t conclusively say that the abovestatement is true. Hence hypothesis 2 is proved partly correct. HYPOTHESIS 3 Our third hypothesis was Coca-Cola is not restricted to a specific age group. Fromthe inference drawn from question no 1 and 8, along with analysis done on the agegroup of sample; we conclusively say that Coca-Cola is not restricted to a specificage group. Hence hypothesis 3 is correctly proved.50 | P a g e
  51. 51. Bibliography 1. 2. 3. BBC World 4. Mahananda Stores, Siliguri ( Retailer) 5. Mr.Jyotririndra Pal,J.S Distributor, Siliguri (Authorised Distributor)51 | P a g e