“A STUDY on GEORGIA Product of Coca-Cola”
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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.