A Project report
On
“A STUDY ON GEORGIA Product of Coca-cola”
Submitted in the partial fulfillment of the requirements for the award of
MASTER OF BUSINESS ADMINISTRATION Sri Venkateswara University
By
(SRIKANTH BOBBA) ROLL NO: 5981002055
BIPD BUSINESS SCHOOL Ameerpet, Hyderabad. BIPD BUSINESS SCHOOL (Industrial Collaborative Program with Sri Venkateswara University, Tirupati) Dharam Karam Road, Ameerpet, Hyderabad-500016
CERTIFICATE
This is to certify that the project work entitled “A STUDY ON GEORGIA-Product of Coca-Cola” the bonafide work done by SRIKANTH.BOBBA under the guidance and direction of Mr.T.SUNIL, in the partial fulfillment for the award of Master of Business Administration during the period 2009-2011.
Project Guide Centre Head Mr.T.Sunil Mr.VenuGopal
Internal Examiner External Examiner
2 DECLARATION
I hereby declare that the project report entitled “A STUDY ON GEORGIA Product of Coca-cola” at COCA COLA, Hyderabad submitted by me to the department of Business Management, BIPD Business School, Hyderabad is a bonafide work undertaken by me and it is not submitted to any other university or institution for the award of any degree or certificate or published any time before.
Place : Hyderabad SRIKANTH.B Date : (HT.NO:5981002055) ACKNOWLEDGEMENT
I sincerely thank the Management of BIPD BUSINESS SCHOOL, Hyderbad for giving me the permission to take up the project work at Coca-Cola Hyderabad.
My heartful thanks to Mr.VenuGopal (Center Head) for his continuous support, advice and constructive suggestions during my project work period.
I am extremely thankful to my entire faculty for their good co-operation throughout my project work.
COCA COLA has been of great work environment and working under guidance of different people has been of great help to acquire knowledge and has given me immense pleasure in presenting it before you.
I sincerely thank Mr.V.KRISHNA (Marketing Head) for delivering his valuable time in completion of my project under his guidance and convey my special thanks to management of COCA COLA without whose co-operation this project wouldn’t have been possible.
I express my deep sense of gratitude and whole hearted thanks to all my family members and friends for their continuous support and encouragement.
SRIKANTH BOBBA
2 CONTENTS Page No’s
1) Executive Summary 04 2) Introduction 05 3) Industry Profile 08 4) Company Profile 10 5) History of Coca Cola 13 6) Coca- Cola in India 16 7) Georgia 22 8) Competitors to Coca Cola in Hot beverages 24 9) Marketing Research 25 10) Marketing Mix 27 11) SWOT Analysis 30 12) Review of Literature 34 13) Research Methodology 36 14) Research Design 37 15) Sources of Data 38 16) Research Measuring Tools & Techniques 40 17) Data Analysis & Interpretation 42 18) Findings 59 19) Suggestions 60 20) Conclusion 61 21) Annexure 62 22) Bibliography 66
3 EXECUTIVE SUMMARY
This report has been prepared with a specific purpose in mind. It outlines the history and current scenario of hot beverages, trends, competitive landscape, prospects, market indicators and provides coverage of the markets size and segmentation data plus detailed analysis and company information for the Indian hot drinks industry.
The report contains a brief introduction of Coca Cola Company and Coca-Cola India with a detailed view of the tasks, which have been undertaken to analyze the market of Coca- Cola i.e. we have performed SWOT analysis of Coca-Cola Company to identify areas of potential growth for coca cola’s hot beverages. We have also given a brief description of trends and forces that are affecting hot beverages of Coca-Cola Company. It also provides and understanding of hot beverages in the market. The different opinion of various people regarding the factors as quality, availability, taste, advertisement and preferences can be known from the study.
The main objective of this project report is to analyze and study in efficient way the current position of hot beverage products. It also aims to perform market analysis of Coca-Cola Company & find out different factors effecting the growth of hot beverage products of Coca-Cola. Another objective of the study was to perform competitive analysis between Coca-Cola and its rivals. Apart from these it tries to understand the customer preferences towards various choices available in hot beverages market.
4 INTRODUCTION
A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
Fig 1.0 BEVERAGES IN INDIA
The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:
• Alcoholic, non-alcoholic and sports beverages.
• Natural and Synthetic beverages.
• In-home consumption and out of home on premises consumption.
• Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
5 • Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry in India are:
• The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. • The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.
• Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category.
• Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.
In 2009, The Coca-Cola Company had 14 brands with annual retail sales exceeding $1
6 billion: Coca-Cola, Coca-Cola Zero, Diet Coke/Coca-Cola Light, Sprite, Fanta, Minute Maid, Dasani, Aquarius, Powerade, Sokenbicha, Nestea, Simply, Georgia Coffee and glacéau vitaminwater. Globally, Coca-Cola takes the number one spot in three beverage categories: sparkling beverages (Coke, Sprite, Fanta), Juices and Juice Drinks (Minute Maid, Fanta) Ready-to-Drink Coffees and Teas (Georgia, Nestea and Sokenbicha).
In 1991, Coca-Cola and Nestle formed a partnership to jointly develop and market ready- to-drink tea and coffee beverages. Coca-Cola Nestle Refreshment’s first product - Nestea Iced Tea - was first introduced in the United States in January 1992, and shortly after in Korea and Taiwan. Vevey, Switzerland-based Nestle remained the trademark owner for Nestea as the company had marketed products under the Nestea brand as early as the 1940s. Today, Nestea is marketed through Beverage Partners Worldwide (BPW), the scion to Coca-Cola Nestle Refreshment, in over 60 countries, but not in Japan.
In India, Georgia Gold premium hot coffee, flavored tea, and chocolate beverages were first test marketed through McDonald’s in 2002. Two years later, Georgia Gold added iced tea and iced coffee to its range.
Although ready-to-drink Georgia coffee is only produced in Japan and Korea, the beverage is exported to other countries outside the Coca-Cola system. They are available in certain Japanese or specialty grocery stores in Asia and in the United States. The Indian market offers a strong consumer potential as the majority of the population is in middle class category, which is a strong consumer base for any hot beverage drink.
7 INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new
8 product, distribution and service formats. The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs
9 COMPANY PROFILE
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca- Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: “Provide a moment of refreshment for a small amount of money- a billion times a day.”
10 The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.
MISSION:
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
• To refresh the world • To inspire moments of optimism and happiness • To create value and make a difference.
VISION: Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.
• People: Be a great place to work where people are inspired to be the best they can be.
11 • Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. • Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. • Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. • Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. • Productivity: Be a highly effective, lean and fast-moving organization
WINNING CULTURE: Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality.
LIVE OUR VALUES: Our values serve as a compass for our actions and describe how we behave in the world.
• Leadership: The courage to shape a better future. • Collaboration: Leverage collective genius. • Integrity: Be real. • Accountability: If it is to be, it's up to me. • Passion: Committed in heart and mind. • Diversity: As inclusive as our brands. • Quality: What we do, we do well.
FOCUS ON THE MARKET:
• Focus on needs of our consumers, customers and franchise partners. • Get out into the market and listen, observe and learn.
12 • Possess a world view. • Focus on execution in the marketplace every day. • Be insatiably curious.
WORK SMART:
• Act with urgency. • Remain responsive to change. • Have the courage to change course when needed. • Remain constructively discontent. • Work efficiently.
ACT LIKE OWNERS:
• Be accountable for our actions and inactions. • Steward system assets and focus on building value. • Reward our people for taking risks and finding better ways to solve problems. • Learn from our outcomes -- what worked and what didn’t.
HISTORY OF COCA-COLA
The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company, a drugstore in Columbus, Georgia by John Pemberton, originally as a coca wine called Pemberton's French Wine Coca. He may have been inspired by the formidable success of Vin Mariani, a European cocawine.
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine Coca. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It was initially sold as a patent medicine for five cents a glass at soda fountains, which were popular in the United States at the time due to the belief that carbonated water was good for the health.[9] Pemberton claimed Coca-Cola cured many diseases, including morphine
13 addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal.
By 1888, three versions of Coca-Cola — sold by three separate businesses — were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. The same year, while suffering from an ongoing addiction to morphine, Pemberton sold the rights a second time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H. Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling his own version of the product.
John Pemberton declared that the name "Coca-Cola" belonged to Charley, but the other two manufacturers could continue to use the formula. So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-Cola in late 1888, in order to force his two competitors out of the business. Candler purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature on the bill of sale had been forged, and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well.
In 1892 Candler incorporated a second company, The Coca-Cola Company (the current corporation), and in 1910 Candler had the earliest records of the company burned, further obscuring its legal origins. By the time of its 50th anniversary, the drink had reached the status of a national icon in the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after the company made minor changes in the sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall advertisement was painted in the same year as well in Cartersville, Georgia. Cans of Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg, Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A. Biedenharn. The original bottles were Biedenharn bottles, very different from the much later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling
14 the drink, but two entrepreneurs from Chattanooga, Tennessee, Benjamin F. Thomas and Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Candler never collected his dollar, but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. The loosely termed contract proved to be problematic for the company for decades to come. Legal matters were not helped by the decision of the bottlers to subcontract to other companies, effectively becoming parent bottlers. Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small quantities, as an over- the-counter remedy for nausea or mildly upset stomach.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink with "New Coke". Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi, but Coca-Cola management was unprepared for the public's nostalgia for the old drink, leading to a backlash. The company gave in to protests and returned to a variation of the old formula, under the name Coca-Cola Classic on July 10, 1985.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose, the same sweetener currently used in Pepsi One. On March 21, 2005, it announced another diet product, Coca-Cola Zero, sweetened partly with a blend of aspartame and acesulfame potassium. In 2007, Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6, B12, magnesium, niacin, and zinc, marketed as "Diet Coke Plus”. On July 5, 2005, it was revealed that Coca-Cola would resume operations in
Iraq for the first time since the Arab League boycotted the company in 1968.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca- Cola." The word "Classic" was truncated because "New Coke" was no longer in production, eliminating the need to differentiate between the two. The formula remained unchanged.
15 In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16- ounce bottles sold in parts of the southeastern United States. The change is part of a larger strategy to rejuvenate the product's image. In November 2009, due to a dispute over wholesale prices of Coca-Cola products, Costco stopped restocking its shelves with Coke and Diet Coke
COCA COLA - INDIA
Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close down its operation by a socialist government in the drive for self sufficiency. After 16 years of absence, coca cola returned to India and witnessed a different culture and economic platform. During their absence, Parle brothers introduced a new type of cola called THUMS UP. Along with, they also formulated a lemon flavored drink, LIMCA, and mango flavored, MAAZA. In 1993, coca cola bought the whole Parle Brother operation, in a hope to beat the main competitor (Pepsi). They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. Pepsi having a 6 year
16 head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India. Pepsi put more focus on the youth of the country in their advertisements but coca cola tried influencing Indians with the ‘American’ way of life, which turned out to be a mistake. Coca-Cola invested heavily in India for the first five years, which got them credit of being one of the biggest investor in the country; however, their sales figures were not so impressive. Hence, they had to re-think their market strategies. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover, hence leading to profit. They launched an extensive market research in India. They ascertained that in India 3 As must be applied; Affordability, Availability and Acceptability. Coca-Cola learnt that they were competing with local drinks such as “Nimbu Pani”, “Narial Pani”, “Lassi” etc. and reached to a conclusion that competitive pricing was unavoidable. Since then they introduced a 200 ml glass bottle for Rs.5.
Further, they had different advertising campaigns for different regions of the country. In the southern part, their strategy was to make Bollywood or Tamil stars to endorse their products. In various regions they tried portraying coca cola products with different regional food products. One of the most famous ad campaigns in India was ‘Thanda Matlab Coca-Cola’; they featured the same quote with different regional entities. Presently, Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i.e. 60% in Carbonated Soft drinks Segment, 36% in Fruit drinks Segment, 33% in Packaged water Segment, compared to its arch rival, Pepsi. Diversifying their product range and having a competitive pricing policy, they have regained their throne. With virtually all the goods and services required to produce and market Coca-Cola being made in India, the business system of the Company directly employs approximately 6,000 people, and indirectly creates employment for more than 125,000 people in related industries through its vast procurement, supply, and distribution System. The Indian operations comprises of 50 bottling operations, 25 owned by the Company, with another 25 being owned by franchisees. That apart, a network of 21 contract packers manufactures a range of products for the Company. On the distribution front, 10-tonne trucks – open bay three-wheelers that can navigate the
17 narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the Country’s remotest areas.
PRODUCTS OF COCA-COLA INDIA
COCA-COLA:-
In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people, even in remote and inaccessible parts of the nation.
Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket, movies, music & food. Coca-Cola’s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary. In 2002.Coca-Cola launched its iconic campaign “Thanda Matlab Coca- Cola” which sky rocketed the brand to make it India’s favourite soft drink brand.
GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS 500ml, 1000ml 2.25L, 500ml, SIZES 100ml
Table - 1.0: Available packs of Coke
18 LIMCA:-
Limca was introduced in 1971 in India. Limca has remained unchallenged as the No.1 sparkling drink in the cloudy lemon segment. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of “Freshness”.
Limca can cast a tangy refreshing spell on anyone, anywhere. Derived from “Nimbu” + “Jaise” hence Lime Sa, Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades.
GLASS PET CAN FOUNTAIN 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS 500ml, 1000ml 2.25L, 500ml, SIZES 100ml
Table - 1.1: Available packs of Limca
THUMS UP:-
Thums up is a leading sparkling soft drink and most trusted brand in India. Originally introduced in 1977, Thums up was acquires by The Coca-Cola Company in 1993. Thums up is known for its strong, fizzy taste and it confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the men from the boys.
GLASS PET CAN FOUNTAIN
19 200ml, 300ml, 500ml, 1.5L, 2L, 330 ml VARIOUS 500ml, 1000ml 2.25L, 500ml, SIZES 100ml
Table - 1.2: Available packs of Thums Up
SPRITE:-
Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. Launched in 1999, Sprite with its cut-thru perspective has managed to be a true teen icon.
RGB PET CAN FOUNTAIN 200ml, 300ml 500ml, 600ml, 330 ml VARIOUS 1250ml, 1500ml, SIZES 2000ml, 2250ml
Table – 1.3: Available packs of Sprite
FANTA:-
Fanta entered the Indian market in the year 1993. Over the years Fanta has occupied a strong market place and is identifies as “The Fun Catalyst”. Perceived as a fun youth brand, Fanta stands for its vibrant colour, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. This positive imagery is associated with happy, cheerful and special times with friends.
20 GLASS PET CAN FOUNTAIN 200ml, 300ml 500ml, 1.5L, 2L, 330 ml VARIOUS 2.25L, 500ml, SIZES 100ml
Table – 1.4: Available packs of Fanta
MINUTE MAID PULPY ORANGE:-
The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation developed orange juice powder. The company developed a process that eliminated 80% of the water in the orange juice, forming a frozen concentrate that when reconstitute created orange juice. They branded it Minute Maid a name connoting the convenience and the ease of preparation. Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate.
The launch of Minute Maid in India (started with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category.
Available in 3 PET pack sizes i.e. 400ml, 1 litre, 1.25 litres.
MAAZA:-
Maaza was introduced in late 1970’s. Maaza has today come to symbolise the very spirit of mangoes. Universally loved for its taste, colour, thickness and wholesome properties, Maaza is the mango lover’s first choice.
RGB PET POCKET MAAZA 200ml, 250ml 250ml, 600ml, 1.2L 200ml
21 Table – 1.5: Available packs of Maaza
KINLEY:-
The importance of water can never be understated, Particularly in a nation such as India where water governs the lives of the millions, be it as a part of everyday ritual or as the monsoon which gives life to the sub continent. Kinley water comes with the assurance of safety from the Coca-Cola Company.
Available in PET 500ml and 1000ml.
GEORGIA GOLD COFFEE:-
Georgia coffee was introduced in India in 2004. The Georgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. Today Georgia coffee is available at Quick-Service Restaurants, Airports, Cinemas and in Corporates across all major metros in India.
HOT BEVERAGES Espresso, Americano, Cappuccino, Caffe Latte, Mochaccino, Hot Chocolate, Cardamon Tea. COLD BEVERAGES Ice Teas, Cold Coffee. Table – 1.6: Available packs of Georgia
22 GEORGIA
GREAT REFRESHER - Any time any where. Long ago when the ancient saadhus started using a queer herb that helped them stay awake for their prayers, the whole world woke up to a new beverage. It has, over the years, found its way into lives of almost all mankind, be it the spicy green tea of china, or the crushed black coffee of south America, or the sweet, milky version of both tea and coffee that has wooed us Indians whichever way you like it, there is no denying the role that a cup plays in our lives. And why only mornings… we Indians cannot resist a delicious hot sip anytime of the day. Late nights, evenings, afternoons, early mornings and all times in between tea and coffee has been an integral part of India for ages. Research proves that an average Indian wakes up to a hot cup of tea or coffee and consumes many more before he ends his day. It also proves that with this backdrop, Georgia fits perfectly in the Indian market.
GEORGIA: A SWEET STORY OF SUCCESS Way back since 1886 quality beverages, around the world, has been synonymous with one name: coca cola they extended the same quality into the hot beverages segment with a new brand, called Georgia tea and coffee. It became instantly one of the most popular international brands. In markets like Japan where people take tea very seriously, Georgia teas and coffees are a big hit. Today, Georgia brings all its quality and experience into India. Perfectly blended to pamper the Indian taste, and the Coca-Cola promise of quality, hygiene and unwavering consistency cup after cup. Every cup is brewed so that it delivers a consistent and splendid taste. Ready-to-drink tea and coffee from Georgia comes to you a winning variety of taste and mouth- watering flavors. Tea → Plain tea, Cardamom tea, Adrak tea and Masala tea Coffee → Coffee, cappuccino and mochacino.
23 TASTE THE DIFFERENCE: That’s because the Georgia vending machine is the most advanced of its kind. Microprocessor controlled digital counter, hardware lock, auto flush system and state-of- the-art. This means low failure rates, hygienic, insect proof and durability like never before. The Georgia vending machine stands out as one of the most convenient to use, producing the best tasting tea and coffee, more profitable than any other in the market. TECHNOLOGY: Georgia vending machines have been specially designed and are introduced keeping the unique requirements of the market in the mind. Technologically Georgia vending machine is the most advanced of its kind. Flexibility in cup offering full and half: is another attribute that makes Georgia vending machine. The technologically superior machine has been put through intense stress tests so that it can withstand the demanding local market conditions.
Georgia vending machines come in four different types: • Solo → single canister
• Twin Georgia → double canister
• Tri → triple canister
• Georgia max → four canister
24 COMPETITORS TO COCA COLA IN HOT BEVERAGES The competitors to the products of the company mainly lie in the non-alcoholic beverage industry consisting of juices and soft drinks.
The key competitors in the industry are as follows:
Barista: Established in worldwide 2000 Barista Lavazza is noted as a pioneer of Indian café culture. Barista Lavazza is a chain of espresso bars delivers a truly Italian experience in warm, friendly and relaxed environment. It consists of young adults wh are exposed to global lifestyles. It consists over 200 Barista Lavazza Espresso bars and Barista Lavazza crèmes over 30 cities. Barsita is owned by Lavazza, the sixth largest coffee roster in the world.
Nestle: Nestle does not give that tough a competition to Coca-Cola as it mainly deals with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has been introduced into the market by Nestle provides a considerable amount of competition to the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products also have become substitutes to the products of the company due to growing health awareness among people.
Coffee Day: India's largest coffee conglomerate, the Amalgamated Bean Coffee Trading Company Limited (ABCTCL). Popularly known as Coffee Day. With Asia's second- largest network of coffee estates (10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant source of coffee. In India it has marked its presence by establishing various outlets and through promoting itself by organizing events with a strong tag “A lot can happen over coffee” and by making the consumers know about various recipes available on its website and appealing through products which can be purchased at their stores and online.
25 Marketing Research of Coca-Cola Company
In the year 1985 when coke was not running successfully due to regular innovation in the taste of coke, it was losing its market value of shares.
But then Coca-Cola began the largest new product research project in the company’s history. It spent more then two years and four million on research before setting on a new formula. It conducted some 2, 00,000 people to different tastes and 3, 00,000 people on the final formula taste alone. In blind tests, 60% of consumers chose the new coke over the old and 52% chose it over Pepsi. Research showed that new coke would be a winner and the company introduced it with confidence.
The Coca-Cola Company has one of the largest Best-Managed and most advanced marketing research operations in America.
Marketing Process
The marketing process involves:
• Analyzing market opportunities • Selecting target markets • Developing the marketing mix • Managing the marketing efforts
The strategic plan defines the company’s overall mission and objectives with each business unit; marketing plays a important role in helping to accomplish the overall strategic objectives marketing role and activities in the organization can be clearly seen by knowing the marketing strategy of the company. Targeting the consumer is very important step in the marketing process. The company identifies the total market; select the most promising segments and focuses on serving and satisfying these segments. It designs a marketing mix made up of factors under its control; Product; Prices; Place and promotion. To find the best marketing mix and put it into action, the company engages in marketing analysis planning implementation and controls.
26 Market Segmentation
Market consists of buyers and buyers differ in one or more ways, they may differ in their wants, resources location, buying attitude etc. each buyer is potentially a separate market. Ideally, a seller must design a separate marketing program for each buyer.
Most sellers face large no. of small buyers and do not final complete segmentation worthwhile instead; they look for brand classes of buyers who differ in their product needs or buying responses.
Marketing Mix Once the company has decided on its overall competitive marketing strategy, it is ready to being planning the details of the marketing mix. The marketing mix is one of the major concepts in modern marketing. We define marketing mix as the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target marketing. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables known as the “Four Ps”: product, price, place, and promotion. Figure 5-6 shows the particular marketing tools under each P.
27 MARKETING MIX OF COCA-COLA INDIA
PRODUCT Coca-Cola India has a wide range of products in its product line i.e. Coca-Cola, Fanta, Sprite, Thums Up, Maaza, Minute Maid and Georgia Gold. Bottled water was another area where Coca-Cola identified major opportunities. In 2002, packaged drinking water in India was a Rs 1,000cr industry and growing by 40% every year. PDW was a low margin – high volume business, but it was an attractive proposition for bottlers as it increased plant utilization rates. In this market Coke’s Kinley was pitched against Ramesh Chauhan’s Bisleri and Pepsi’s Aquafina. The product not only faced intense competition but also was difficult to differentiate. Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water). In early 1999, the parent company acquired Cadbury Schweppes. As a result 12 more bottlers were brought into CCI’s fold. This acquisition added Crush, Canada Dry and Sport Cola to CCI’s product line. This meant CCI had three orange, clear lime and cola drinks each in its portfolio.
PRICE
Coke learnt with experience that price was a strategic weapon in an emerging market like India. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers. In 2000, CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. The volumes went up by 30% demonstrating the importance of consumer affordability. So the 200ml pack priced at Rs 5 was rolled out countrywide in January 2003. The advertising Campaign highlighted the affordability and Indian image.
To make it affordable, Coke introduced Kinley in 200ml pouches for Re. 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra, priced at Rs 3 per cup in testing marketing exercise conducted in mid – 2002. In 2002 Kinley with 35% market share had become leader in the retail segment and was contributing 20% CCI’s revenues.
28 PLACE Coke pushed down responsibilities from corporate headquarters to the local business units. The aim was to effectively align CCI's corporate resources, support systems and culture to leverage the local capabilities. CCI's operations had been divided into North, Central and Southern regions. Each region had a president at the top, with divisions comprising marketing, finance, human resources and bottling operations. The heads of the divisions reported to the CEO. Bottling operations were divided into four companies directed by the bottling head from headquarters. Under the new plan, CCI shifted to a six region profit center set up where product customization and packaging, marketing and brand building were taken up locally. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. All the RGMs reported to VP (Operations, who in turn reported to CEO. The four bottling operations, with 37 bottling plants, were merged into Hindustan Coca-Cola Beverages (HCCB). Each of the six regions had on an average six bottling plants. Each plant was headed by an Area General Manager (AGM) and held profit center responsibility for a business territory. He reported to the RGM as well as the head of bottling at the head quarters.
PROMOTION In the initial years, CCI focused on establishing the Coca-Cola brand quickly. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. Coke, as a deliberate strategy, decided not to spend heavily on promoting Thums Up. Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. Thumps Up remained neglected. Inadequate marketing support for other Parle brands also led to their declining market shares.
The bottlers taken over by Coke also had problems adjusting to a new work culture. They argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and asked CCI to take corrective action.
29 Coke is primarily targeted at young individuals over the age of twenty-five. This can be seen by Coca-Colas advertising campaigns, which are aimed towards the young, by featuring well known personalities popular to this age group. During 90'ies Coke's promotion efforts did not seem to be effective. They were focused on mega events like the 1996 Cricket World Cup held in India. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. In 1998 localization of marketing efforts, CCI signed up celebrities like Aamir Khan, Aishwarya Rai, and Sunil Gavaskar to promote Coke. Coke also began efforts to rejuvenate the Parle brands, Limca and Thumps Up. In 1998, India was declared the fastest growing market within the Coca-Cola system. But things were far from normal. Attempts at building growth through discounts and PET take home segment were not very successful because of lack of coordination between the launches and marketing back-up.
To maintain good relationships with bottlers and avoid defections to the other camp, dealers had been pampered by offering expensive overseas trips. In 2000, Coke wrote off investments in India, amounting to $400 Mn. The revised value of CCI's assets after the charge was $300 million.
CCI spent $3.5 mn to beef up advertising and distribution for Thumps Up. By 2002, it had become India's No.2 cola drink after Pepsi. Maaza, the mango drink, was repositioned as a juice brand and saw a growth of almost 30% in 2001. Since India was a large country of different tastes and cultures, CCI customized its marketing strategy for different regions. It promoted the Coke brand in Delhi, Thumps Up in Mumbai and Andhra Pradesh, and Fanta in Tamil Nadu. Coke had plans to launch Rimzim, a spicy soda drink in North Maharashtra.
30 SWOT ANALYSIS OF COCA-COLA INDIA
Fig 1.1 SWOT ANALYSIS OF COCA-COLA INDIA
STRENGTHS
• DISTRIBUTION NETWORK: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, 700,000 retail outlets and 8000 distributors. The distribution fleet includes different modes of distribution, from 10- tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.
• STRONG BRANDS: The products produced and marketed by the Company have a strong brand image. People all around the world recognize the brands marketed by the Company. Strong brand names like Sprite, Fanta, Limca, Thums Up and Maaza add up
31 to the brand name of the Coca-Cola Company as a whole. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world. Coca- Cola has been named the world's top brand for a fourth consecutive year in a survey by consultancy Interbrand. It was estimated that the Coca-Cola brand was worth $70.45 billion.
• LOW COST OF OPERATIONS: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs.
WEAKNESSES
• LOW EXPORT LEVELS: The brands produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and Coca-Cola, contained toxins including linden, DDT, malathion and chlorpyrifos- pesticides that can contribute to cancer and a breakdown of the immune system. Therefore, people abroad, are apprehensive about Coca-Cola products from India.
• SMALL SCALE SECTOR RESERVATIONS LIMIT ABILITY TO INVEST AND ACHIEVE ECONOMIES OF SCALE: The Company’s operations are carried out on a small scale and due to Government restrictions and ‘red-tapism’, the company finds it very difficult to invest in technological advancements and achieve economies of scale.
32 OPPORTUNITIES
• LARGE DOMESTIC MARKETS: The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50,000 new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3,500 new villages. In Bangalore, Coca-Cola amounts for 74% of the beverage market.
• EXPORT POTENTIAL: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.
• HIGHER INCOME AMONG PEOPLE: Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income. Unlike olden times, people now have the power of buying goods of their choice without having to worry much about the flow of their income. The beverage industry can take advantage of such a situation and enhance their sales.
THREATS
• IMPORTS: As India is developing at a fast pace, the per capita income has increased over the years and a majority of the people are educated, the export levels have gone high. People understand trade to a large extent and the demand for foreign goods has increased over the years. If consumers shift onto imported beverages rather than have
33 beverages manufactured within the country, it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company.
• TAX AND REGULATORY SECTOR: The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. When a license is issued, the production capacity is mentioned on the license and every time the production capacity needs to be increased, the license poses a problem. Renewing or updating a license every now and then is difficult. Therefore, this can limit the growth of the Company and pose problems.
• SLOWDOWN IN RURAL DEMAND: The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income; large number of daily wage earners, acute dependence on the vagaries of the monsoon; seasonal consumption linked to harvests and festivals and special occasions; poor roads; power problems; and inaccessibility to conventional advertising media. All these problems might lead to a slowdown in the demand for the company’s products.
34 REVIEW OF LITERATURE
Coca Cola was established in 1886, and through all of the rough times and competition, is still one of the top refreshment brands today. They own 4 of the world’s top 5 nonalcoholic sparkling beverage brands, they operate in 200+ countries, they serve nearly 1.6 billion consumers a day, and they have more than 3,000 products. (Coca Cola Company, 2009). Why would a company this big, and this successful “upgrade” their status, and start using social media? Because they’re smart. Their Coca-Cola mission is to refresh the world, to inspire moments of optimism, and to create value and make a difference. If not anything else, the steps that Coke has taken this past year should have given them many moments of optimism.
In case study presented by Adam Brown of Coca-Cola, he stated, “…back in the day you would have heard me say, our home page isn’t just coke.com, it’s google.com … now… it’s google.com, technorati.com, facebook.com”. He also stated in his presentation that Coca-Cola’s strategy is to Review, Record, Respond, and Redirect.
Coca-Cola has done an amazing job at not only reaching out to the “new media era” audience, but also the people who followed them in the past.
Coca-Cola has an official blog called Coca-Cola Conversations which is written and updated by a man by the name of Phil Mooney, who has served as the historian/archivist for Coca-Cola for the last 30 years.
The blog contains a wide variety of topics, ranging from our role in pop culture to brand history to Coke collectibles. (Mooney,2009). It reaches out to a wide variety of audiences, and encourages people to write back and give their input, something Coke probably couldn’t have gotten this far without.
Besides a blog, Coke also has an individual Twitter page for each product, a LinkedIn profile, a Facebook Fan page, CokeTag. CokeTag was released “because they believe
35 that connecting people and giving them a way to share what matters is one of the many things that helps define The Coke Side of Life.”
The Facebook fan page was created by two users who liked Coke. What started as a fan page for fun, turned out to be the largest product fan page on Facebook.
Coca Cola, instead of taking over the page and making it their own, rewarded the fans by bringing them to Atlanta and giving them a tour of the Coke facility. The fan page remains theirs, but now they have the blessing and help of Coca Cola. By empowering the fans to keep their fan page, Coke ensures a passionate page owner.
The Coca Cola marketing team was also smart enough to realize that letting others know what happened here would work in their favor. The fan page creators were told to make a video of the history behind the fan page, and how Coke had reached out to them and rewarded them for this. (Balwani, 2009) Part of the Action Plan for Harnessing the Power of the New Rules states that you should define your organizations goals first, then based on the goals decide whether or not you want to provide the content for free and without registration. It is also stated that you should write for your audience using examples and stories, and of course make it interesting.
Through years, Coke has been done an amazing job of launching new items, keeping a close eye on their followers, and continuing on based on their target audiences reactions. Coke has made this new media campaign come full circle, and they don’t seem to be anywhere near done yet.
36 RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY
• The main objective of the project is to analyze and study in efficient way the current position of hot and cold beverages in Coca- Cola.
• To perform SWOT analysis on hot and cold beverage products locally. This would help us identify areas of potential growth.
• The study was aimed to perform market analysis of Coca-Cola products and find out different factors effecting the growth of hot beverages.
• Another objective of the study was to perform competitive analysis between Coca- Cola and its rival products.
• To understand the main reasons behind the purchase of hot beverages.
SCOPE OF THE STUDY: This study basically tries to discover the current position of Coca-cola in the hot beverages market. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and its rival products. It is primarily directed to the general public of twin cities of Hyderabad.
37 RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the needed information. It is overall operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedure.
There are three types of objectives in a marketing research project:- • Exploratory Research.
• Descriptive Research.
• Casual Research.
Exploratory Research:-
The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypothesis.
Descriptive Research:-
The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Casual Research:
The objective of casual research is to test hypothesis about casual and effect relationships.
Based on the above definitions it can be established that this study is a descriptive research as the attitudes of the customers who buy the products have been stated. Through this study we are trying to analyze the various factors that may be responsible for the preference of hot and cold beverages products of Coca-Cola.
38 RESEARCH OBJECTIVES: The research study has been carried out with the aim of collecting the information, which will be useful in formulating an effective marketing strategy for effective growth of Georgia in twin cities.
The following are some of the major objectives of this research study, which have been identified.
PRIMARY OBJECTIVES: • To understand the environment for the existing ready to drink coffee-tea through vending machines in twin cities, by determining the market size, market share of the existing brands and other related trends in the market. • To assess the competitive position of Georgia in respect to other brands and identify possible threats and opportunities in the market.
SOURCES OF DATA: PRIMARY DATA: The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study. The methods that have been used to collect the primary data are: Questionnaire. Personal Interview
SECONDARY DATA: It is defined as the data collected earlier for a purpose other than one currently being
39 pursued. As a researcher I have scanned lot of sources to get an access to secondary data which have formed a reference base to compare the research findings. Secondary data in this study has provided an insight and forms an outline for the core objectives established.
The various sources of secondary data used for this study are:- • News papers
• Magazines.
• Text books.
• Marketing reports of the company.
• Internet.
Phase I: Data has been collected by using a structured questionnaire consisting of close- ended questions, from a sample of 20 retail outlet owners. The following important points are known from the questionnaire: 1 Market share of the competitors. 2 Average cup-page per outlet. 3 Machine placement schemes of the competitors. 4 Service frequency. 5 Maintenance costs. 6 Source of water Phase II: Data has been collected by using a structured questionnaire consisting of closed ended and open ended questions, from a sample of 147. The following points are known from the questionnaire: 1 Consumer’s beverage preference 2 Consumers brand preference 3 Consumers flavor preference in both tea and coffee 4 Consumption rate per day
40 5 Consumers chicory perception
RESEARCH MEASURING TOOLS & TECHNIQUES The primary tool for the data collection used in this study is the respondent’s response to the questionnaire given to them. The various research measuring tools used are:- Questionnaire.
Personal interview.
Tables.
Percentages.
Pie-charts.
Bar-charts.
SAMPLING DESIGN
An integral component of a research design is the sampling plan. Especially it addresses three questions: Whom to survey (sample Unit), how many to survey (Sample Size) and how to select them (sampling Procedure). Making the census study of the entire universe will be impossible on the account of limitations of time and money. The study is conducted in the twin cities of Hyderabad and Secunderabad spanning over a period of eight weeks. SAMPLE SIZE: i. Through questionnaire – 140 respondents.
ii. Through personal interview – 27 respondents.
41 SAMPLING TOOL:- Questionnaire was used as a main tool for the collection of data, mainly because it gives the chance for timely feedback from respondents. Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. Respondents seeking any clarification can easily be sorted out through tool.
Sampling Tools Respondents Number Questionnaire Consumers 147 Personal Interview Customers 20 Total 167 Table – 1.7: Calculating total no of persons using Sampling Tool FIELD WORK: The study was conducted in twin cities of Hyderabad and Secunderabad • The questionnaires were given to the respondents to fill in order to get their feedback. • Questionnaires have been sent through emails to cover people at various work locations and time periods.
LIMITATIONS OF THE STUDY: The main purpose of this study is get idea about the preference of the customers towards various Coca-Cola products in hot beverages, but there are certain factors which affects this study they are as follows: • Economic and market conditions are very unpredictable (Present and future).
• The project duration is limited to 8 weeks so it limits the area of study.
• The study was confined to Hyderabad and Secunderabad due to which the result cannot be applied universally.
• Since the sampling procedure was judgmental, the sample selected may not be true representative of the population.
42
DATA ANALYSIS & INTERPRETATION
Fig 1.2
The above graph represents the total no of respondents based on various age groups of
43 different occupations to study the behavioral patterns to identify the consumption of hot beverages based on their daily activities and occasional preferences
CONSUMER’S PREFERENCE OF HOT BEVERAGE: The following points give us the percentage for the preference for the hot beverage i.e. coffee and tea
BRAND PERCENTAGE Coffee 60.6% Tea 39.4%
44 Fig 1.3
INTERPRETATION: The consumer’s preference towards the vending machine can be analyzed from the above graph where it denotes that the majority of the people prefer coffee rather than tea at the different vending machines.
CONSUMPTION RATIO OF HOT BEVERAGES:
Fig 1.4
INTERPRETATION: From Fig 1.4, we interpret that about 48% of the total respondents consume hot beverages rarely or once a week. About 35% respondents consume hot beverages twice or thrice a week and only 18% consume hot beverages every day. Lastly it can be seen that 60% of the respondents consume rarely.
45 Consumption of Hot beverages at various locations:
Fig 1.5
Interpretation: From the above graph we can predict that hot beverages consumed at various locations. It is seen that majority of the consumption usually takes place at work places and the next major choice of prefernece is branded retail outlets.Only a small portion of the people would prefer at leisure places.
46 CONSUMER’S AGE BREAK UP AT THE VENDING POINTS:
The following graph will explain us about the age breakup of the consumers at the vending point. AGE GROUP % 15-25 44% 25-40 37% >40 19%
Fig 1.5
47 INTERPRETATION: From Fig1.5 it was found that 44% of the respondents belong to age group of 15-25 who are teenagers, followed by 37% belong to age group of 25- 40 who come under mid-aged persons and finally 19% belongs to the age group above 40yrs.
CONSUMER’S PREFERENCE OF FLAVORS IN TEA: The following graph will give us the tea flavor preference of the consumers: TEA FLAVOUR % ADARAK 23% ELAICHI 38% MASALA 11% PLAIN 28%
Fig 1.6
INTERPETATION: An interesting point that can be observed from the survey is that
48 nearly 38% percent of the people would opt for tea with elaichi flavour where it constitutes a major part of the share compared to plain and adrak which almost have an equal share of percentages. From the above graph it can be seen that majority of the people would like to have tea consisting of some flavor rather than a plain tea.
CONSUMER’S PREFERENCE OF FLAVORS IN COFFEE:
COFFEE FLAVOUR % BLENDED COFFEE 24% PURE COFFEE 76%
Fig 1.7 INTERPRETATION: From the above fig1.7 it is clearly evident that most of the consumers prefer to have a pure coffee rather than the blended one. But many of them don’t even realize that the coffee they are consuming right now is a blended one. So this clearly tells us that here the brand is the one which is driving the consumer rather than the product on its own.
49
CONSUMER’S PREFERNCE OF BRANDS:
BRAND PREFERENCE % NESCAFE 44% GEORGIA 39% LIPTON 5% COFFEE DAY 12%
Fig 1.6
INTERPRETATION: From the above chart it is clear that the brand preference of the majority of the respondents is towards Nescafe followed by Georgia where the Nescafe slightly ahead of the Georgia and only these two capture the major portion of the brand
50 among the respondents.
RESPONSE OF CONSUMERS WHETHER PREFER TO ONE BRAND OR NOT
Yes No Not Respond
90 65 6
Fig 1.7 INTERPRETATION: The findings suggest that the majority of the respondents do stick to one brand and 40% of them tend to change their brands if the brand doesn’t meet their expectations or if the brand is unable to satisfy the consumer’s needs. This shows that people can change their brand according to their interests and preferences are available in the products irrespective of the brand they have been used to.
51 DOES AN ADVERTISEMENT MAKE YOU TO SHIFT TO OTHER BRANDS
Yes No Not Respond
28 68 4
Fig 1.8
INTERPRETATION: The findings suggest that an advertisement alone does not influence people to shift between various brands of hot beverage alone cannot change the consumption of one
52 brand to which they have been used to as it can only create an awareness of other brands existing in the market.
VARIOUS ADVERTISING SOURCES OF AWARENESS
ADVERTIZING SOURCES % Newspaper 30 Television 60 Magazines 4 Other sources 6
Fig 1.9
INTERPRETATION: The findings suggest that most of the respondents come to know about the various
53 brands existing in the hot beverages market through television because it is the most widely viewed choice by majority of the customers of all age groups and with various backgrounds. Magazines constitute a very less percentage in creating the awareness among the people as the people hardly find time to go through different magazines available in the market.
THE RETAIL OUTLET’S OVERVIEW
Major market Share of Hot Beverages
MARKET SHARE % NESCAFE 25 COFFE DAY 12 HLL 35 GEORGIA 28
Fig 1.10
Though the brand value of Georgia is good in the market, but the market leader is
54 HLL. The company is very aggressive in the recent past in installing its vending machines. Georgia is very selective in placing its machines in the retail market. Coffee day has started expanding its outlets recently and is trying to spread itself into the market with rapid pace. Coming to Nescafe, its market share is negligible in the retail market. Hardly there are any vending machines found in the market.
Types of cups used:
BRANDE COMPANY D UNBRANDED HLL 2 97 NESCAFE 11 40 COFFE DAY 19 1 GEORGI 3 10 A 5
Fig 1.12
55 INTERPRETATION: HLL and Nescafe use branded cups only at selected outlets. Coffee day and Georgia uses only branded cups and it even provided them free of cost to the retailers along with a lid over it. In fact many retailers say that the distributors themselves advise them to go in for unbranded cups, to reduce their cost per cup and when there is sudden unavailability of the branded cups.
Machine placement scheme:
SCHEME % FINANCE SCEME 35 SHARING/CUP 12 MONTHLY RENTAL 114
Fig 1.13
INTERPRETATION: Many customers running the retail outlets convey that 71% of the machines in the market
56 are given on monthly rental basis, 22% on sharing/cup basis and only 7% are given on finance scheme. This shows that a certain amount of consumers used to certain flavor or have their choice cannot frequently visit the outlets as unavailability is certain.
Source of water used:
TAP MINERAL BRAND WATER WATER HLL 92 6 NESCFE 45 4 COFFE DAY 0 20
Fig 1.14
Once again the discrimination has been shown by HLL and Nescafe in this issue. These companies use mineral water only at some premium outlets. But coffee day uses it
57 everywhere. It provides mineral water to the retailers free of cost. This will give a good message in the market especially in the minds of consumers who has turned out to hygiene conscious. They even provide a lid over the cup of coffee you purchase. All these things add value to your product.
Quality & Taste
Fig 1.15
Fig 1.16
58 QUALITY & TASTE:
From Fig 1.15 & 1.16, it’s clear that Georgia products have better quality than that of other hot beverages. About 73% respondents consider that Georgia products have very good quality. Coming to the taste among respondents other hot beverages have a great impact than Georgia because of the taste and aroma other brands are offering in their products.
AVAILABILTY AND SATISFACTION
Fig 1.17
59 Fig 1.18 AVAILABILITY & SATISFACTION:
From Fig 1.17, it’s clear that there is slight difference between the availability of products of Georgia and other hot beverages. About 51% respondents think that Georgia is much easily available in the market and 49% consider that availability of other hot beverages products are more in the market. About 70% of respondents are satisfied with the other hot beverages while as 30% respondents are satisfied with Georgia as shown in fig1.18.
FINDINGS
1) Brand plays a very important role in each and every organization for its effective functioning. 2) Effective marketing strategy has to be implemented by the company for the consumers to prefer the hot beverage of coca cola. 3) Many consumers only have hot beverages mostly at the offices and at leisure time. 4) People have shown good satisfactory levels with the product quality but mentioned that the availability of the product was low. 5) Many of the customers have responded that Georgia was not advertised as effective as the competitors. 6) The customers and consumers are satisfied with the pricing and service levels 7) A majority of it’s share mainly comes from the outlets located at only selected areas. 8) Many of the customers prefer to visit the Georgia vending machines regularly. 9) Georgia has always been set as an customizable option among other retail outlets.
60 SUGGESTIONS
The suggestions made in this section are based on the market study conducted as part of “Coca-Cola India”. The suggestions are arranged in order of priority, highest first. Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer.
The company should make hindrance free arrangement for its customers/retail outlets to make any feedback or suggestions as and when they feel.
The company should focus to bring some more flavors and other low- calorie offerings. It can actually try to introduce some more flavors which can meet the tastes of people of all ages.
Georgia’s distribution channel is mostly through retail outlets. Whereas the competitors are concentrating more on the multiplexes, pubs and restaurants. Coca-Cola should try to increase their distribution in these areas.
The company must keep a watch on its primary competitors in market in order to be able to compete with them.
61 The company should use new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole.
The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from the market and try to solve it without any delay to establish its own good credibility.
A strong watch should be kept on distributors so that the goodwill of the BRAND doesn’t get affected.
CONCLUSION
Though there were certain limitations in the study that was conducted. The sample allowed for some conclusions to be drawn on the basis of analysis that was done on the data collected.
The data has clearly indicated that Coca-Cola products are less popular than the products of hot beverages because of its TASTE, BRAND NAME, INNOVATIVENESS and AVAILABILITY, thus it should focus on availability and taste so that it can capture the major part of the market. The study also indicated that the consumers are satisfied with the Georgia and purchase them without any specific occasions.
In today’s scenario, customer is the king because he has got various choices around him. If you are not capable of providing him the desired result he will definitely switch over to the other provider. Therefore to survive in this cutthroat competition, you need to be the
62 best. Customer is no more loyal in today’s scenario, so you need to be always on your toes.
While launching the product the company has to go in for the flavors promotion program by going for a tie up with some good retail chains, big shopping complexes and stores available with open space to set up the coffee machines.
Providing total beverage solutions to the institutions will help the company in building its market share. Building brand Georgia is the most important exercise that has to be taken up by the company
Georgia should be positioned as a quality refreshment beverage at an affordable price. There must be a physical product appeal in the market which gives the consumer a strong reason to try the product.
ANNEXURE
QUESTIONNAIRE
NAME & AGE:
...... GENDER:
a) Male b) Female
Do you drink Hot Beverages?
a) Yes
b) No
What do you like to taste?
63 a) Coffee b) Tea
Which flavor do you like to have in coffee?
a) Pure
b) Blended
Which flavor do you like to have in tea?
a) Masala
b) Adrak
c) Plain
d) Elaichi
How often do you have Hot Beverages per week?
a) Once a week
b) Twice a week
c) Thrice a week
d) Everyday
e) Rarely
What drink comes to your mind when you think of Hot Beverages?
a) Georgia
b) Nescafe
c) Coffee Day
d) Other drinks
Do you think that ads can make to shift from one brand to other?
64 a) Yes
b) No
What means is more effective in promoting it products?
a) Television
b) Magazines
c) Newspaper
d) Others
What quantity do you usually prefer to buy?
a) 200-400 ml
b) 130-250 ml
c) 90-150 ml
What do you feel about Georgia product range?
a) Excellent
b) Good
c) Satisfactory
d) Below Satisfactory
e) Bad
What occasions do you prefer to have Georgia products?
a) Bakeries
b) Departmental Stores
c) Cinemas
d) Just like that
65 What is your most preferred channel for purchasing Georgia?
a) Super markets
b) Retails
c) Vendor Machines
d) Pubs & Restaurants
e) Multiplexes
How much do you spend on hot beverages per week?
a) 50-100
b) 100-150
c) 150-200
d) Above 200
Put (X) mark in which ever you feel is appropriate?
Parameters / Product Georgia Other Hot beverages 1) Branding 2) Quality 3) Price 4) Taste 5) Availability 6) Satisfaction
What do you want Georgia to introduce in the future?
a) More flavors
b) More retail Outlets
c) Low calorie drink
66 What kind of vending machine you use?
a) HLL
b) Nescafe
c) Coffee Day
d) Georgia
How many number of people come in for hot beverages?
a) 10-50
b) 50-100
c) 100-200
d) Above 200
How much number of units is sold daily?
a) Coffee
b) Tea
How many flavor options are offered in each machine used?
a) 1
b) 2
c) 3
d) 4
What machine replacement would you prefer?
67 a) Finance scheme
b) Sharing per unit
c) Monthly rental
What is the source of water used for vending machines?
a) Tap water
b) Mineral water
What is the source of purchase of empty units?
a) Companies provide them for free
b) Buy branded units
c) Buy unbranded from other source
Are you interested in installing a vending machine?
a) Yes
b) No
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BIBILOGRAPHY
Principles of Marketing : Philip Kotler
Research Methodology : Luck David & Rubin Ronald
Consumer Behavior : Leon G. Schiffman Lesli Lazer Kanuk
Websites : www.thecoca-colacompany.com
: www.coca-colaindia.com
: www.wikipedia.com
: www.cocacola.co
: www.7xpub.com
: www.wikiinvest.com
: www.magindia.com
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