Major Project Summer Training

8/9/2019 Major Project Summer Training

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

Consumer brand preference in soft drinks, juices

And

Packaged drinking water

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Bachelors of Business Administration (Hons)

Submitted by:

Prerna Chauhan

7020070002



PHAGWARA

(2007-2010)

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TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled consumer brand preference in soft

drinks, juices and packaged drinking water carried out by Ms. Prerna chauhan, D/o

Mr. Kailash chander has been accomplished under my guidance & supervisionas a

duly registered BBA (Hons) student of the Department of Management, Lovely

Professional University, and Phagwara. This project is being submitted by her in the

partial fulfillment of the requirements for the award of the BBA(Hons) from Lovely

Professional University.

Her summer training represents her original work and is worthy of consideration for

the award of the degree of BBA (Hons)

___________________________________

(Name & Signature of the Faculty Advisor)

Title: ______________________________

Date: ______________________________

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DECLARATION

I,Prerna chauhan, hereby declare that the work presented herein is genuine work done

originally by me and has not been published or submitted elsewhere for the

requirement of a degree programme. Any literature, data or works done by others and

cited within this summer training project has been given due acknowledgement and

listed in the reference section.

_______________________

(Student's name & Signature)

_______________________

(Registration No.)

Date:__________________

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ACKNOWLEDGEMENT

It gives me immense gratification to place on records my profound gratitude andsincere appreciation to each and every one of those who have helped me in this

endeavor. I am ineffably indebted to my faculty guide Prof. Dr. Madhavi Pandya for

her most valuable and regular guidance without which my project would not have

been completed.

I extend my sincere thanks to Mr. Updeep Singh, Deputy General Manager, KandhariBeverages Pvt. Ltd.

Kandhari Beverages Pvt Ltd for his valuable suggestions throughoutthe project.

I am also very much thankful to Mr. Deepak Sohi, Area Sales Manager and for his

continuous motivation throughout this project, which really helped me in

completing the project. I would also like to thank the entire staff of Kandhari

Beverages Pvt Ltd,Chandigarh for their cooperation and support.

Any omission in this brief acknowledgement may not be taken as lack of

gratitude.



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CHAPTER NO. NAME PAGE NO.

1

1.1

1.2

introduction

introduction to

subject

review of

literature

1

2

3-11

2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

2.11

2.12

2.13

Introduction to

industry and

organisation

Industry Profile

Company Profile

Manufacturing

process

History of Coca-

Cola

Milestone

Coca-Cola slogans

Product range of

company

Brands of Coca-

Cola India

Mission and

Vision

Financial data

Organizational

chart

12

13-19

20

21-25

27-28

29-35

36

37-39

40-42

43-44

45-46

47

48-51

52-53

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2.14

2.15

E-Commerece

Swot Analysis

Concept of RED

Kandhari

Beverages Pvt.Ltd

54

55

3

3.1

3.2

3.3

3.4

3.5

Project profile

Object of study

Research

methodology

Scope

Limitation

significance

56

57

57-58

58-59

59

59

4

4.1

4.2

4.3

Results of the

survey

Survey ineducational

institutes

Survey in shops

Survey of

packaged

drinking water

60

61-68

69-80

81-97

5 Conclusions and

recomendations

98-99

6 summary 100-101

7 Bibliography 102-103

8 Appendix 104

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CHAPTER 1

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INTRODUCTIONTO TOPIC

1.1 Introduction to subject

BRAND

A brand is a collection of experiences and associations connected with a service, a

person or any other entity.

Brands have become increasingly important components of culture and the economy,

now being described as "cultural accessories and personal philosophies".

BRAND PREFERENCE

Measure of brand loyalty in which a consumer will choose a particular brand in

presence of competing brands, but will accept substitutes if that brand is not available.

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FACTORS AFFECTING BRAND PREFERENCE

Advertisement

Availability

Visibility

Packaging

Taste

Companys image

1.2 LITERATURE REVIEW

Lansdowne, 2004 carried out research to explore Consumer perceptions of fruit juice

brands. This research identified that consumers perceived ambient juices to be of

variable quality, and NOT as healthy and natural as chilled juice. Chilled juice was

viewed as more authentic, better quality and above all healthier and more natural than

Ambient. Though there was also some consumer resistance to paying the premium

prices charged for chilled juices given the choice they would habitually consume

chilled juice but price was a barrier. Consumers dont always want to pay premium

prices for fresh chilled juices; much of the time they want a healthy juice at a

reasonable price. For most consumers, ambient juice was currently seen as a trade

down, as unexciting, undifferentiated and habitual; despite being 100% fruit juice.

Despite this consumers did tell us that Fruits tasted great. The agency therefore

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discovered that they needed to inform and reassure consumers of the fruit content and

real, natural, fruit credentials of Fruit-

American Journal of Lifestyle Medicine (AJLM), Published by SAGE, 2006 states

that When considering cancer and coronary heart disease prevention, there is no

evidence that pure fruit and vegetable juices are less beneficial than whole fruit and

vegetables. The researchers add that the positioning of juices as being nutritionally

inferior to whole fruits and vegetables in relationship to chronic disease development is

unjustified and that policy which suggest otherwise about fruit and vegetable juices

should be re-examined. The researchers who authored the paper Can pure fruit and

vegetable juices protect against cancer and cardiovascular disease, too? A review of theevidence suggests that more studies in certain area are needed to bolster their findings.

Although this independent review of the literature is not designed to focus on any

particular 100 percent juice, it does go a long way in demonstrating that fruit and

vegetable juices do play an important role in reducing the risk of various diseases,

especially cancer and cardiovascular heart disease, says Sue Taylor, RD, with the

Juice Products Association, a non-profit organization not associated.

Kassem, Lee, Modeste and Johnston , 2005. This study identified factors that

influence regular soda consumptionamong 707 female students, aged 1318 years,

attendingNorth Los Angeles County public high schools. Participants completeda

group-administered Theory of Planned Behavior-based questionnaire.Almost all of the

participants, 96.3%, reported that they currentlydrink soda; 50.1% reported drinking 2

glasses of soda or moreper day during the past year. Students reported drinking regular

soda more than diet soda and reported drinking phosphoric acid-containingsoda more

than non-phosphoric acid-containing soda. Attitude,subjective norm and perceived

behavioral control had statisticallysignificant positive associations with intention, and

were eachsignificant predictors of intention to drink regular soda andtogether10


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explained 64% of its variance. The strongest predictorwas attitude, followed by

perceived behavioral control and subjectivenorm. Our results suggest that efforts to

reduce soda consumptionamong female adolescents should include parents and friends.

It is also important that soda should not be excessively available at home or widely

accessible to teenagers at schools. Healthyeating messages for adolescents need to be

developed and incorporatedinto existing and future campaigns to reinforce the

perceptionthat there are other healthier drinks that quench thirst andthat taste good as

well.

With consumers showing a growing preference for healthier soft drinks such as bottled

water and fruit/vegetable juice rather than carbonates in 2007, the two carbonates

giants suffered a marginal decline in share. Although both players embarked on a

change in strategy to focus more on non-carbonated soft drinks in their portfolios, they

were unable to maintain share and lost out slightly to home-grown players Parle Bisleri

and Dabur India. Coca-Cola India launched Minute Maid and pushed the sales of its

juices while PepsiCo India heavily promoted Tropicana, Aquafina and Gatorade during

2007. In addition, Coca-Cola India and PepsiCo India embarked on re-branding

themselves as total beverage players and not just carbonates players.

Wu, Juanjuan; Delong, Marilyn To provide marketing and managerial insights to western

companies selling denim jeans in China, specifically in Shanghai. Understanding

consumers' perceptions of Western-branded jeans in a cultural-specific marketplace is the

primary focus. Design/methodology/approach - Combined methods included observation of

shoppers wearing jeans in two malls in Shanghai and an anonymous survey. A total of 219

surveys were analyzed and consumer-perceived jeans attributes or related concepts were

tabulated. Findings - About one third of the observed shoppers were wearing jeans, which

signified a relatively high popularity of jeans as casual wear in Shanghai. The design and

fashion of jeans were deemed highly critical but were superseded by comfort and fit.

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Shanghai consumers distinguished brand origins only between the West and the East

instead of by specific countries. Dissatisfaction with price and fit were identified.

Bristow, Schneider, Schuler The marketing literature provides substantial discussion of

branding and brand equity, but reveals limited research on the use of brand name in theconsumer decision-making process. Further, most such studies have included the

manipulation of product brand name as an independent variable. The primary objective in

this study was to address that lack of attention to consumers use of brand names by

developing and empirically testing a multi-item scale called the brand dependence scale

(BDS). The psychometric properties of the scale were assessed and the relationship between

brand dependence and brand disparity was explored. The results of the study showed that

the BDS demonstrated adequate internal reliability and that a significant positive

relationship between brand dependence and brand disparity existed. Implications of the

study results and managerial applications for the scale are discussed.

Auty, Elliot After many years as a stepchild to the specialty coffee market, tea is taking

off in the United States. The trend is fueled by good news about the health benefits of

drinking tea, by new products and appealing packaging, by an interest in alternatives to

coffee or soda, and by lifestyles that embrace both the luxury/ritual aspect of tea and the

convenience of new bottled and ready-to-drink teas.

Packaged Facts new report, The U.S. Market for Tea and Ready-to-Drink Tea, 2nd Edition,

explores teas new prominence and the impact on the market and the consumer psyche.

As the market grows, its also becoming much more segmented and competitive. Where

black tea was once the predominant choice available on supermarket shelves, there are now

many varieties, each with particular health and flavor aspects. These include green tea,

white tea, red tea, herbal tea, medicinal tea, chai, yerba mate, and blends of all the above.

Tea drinkers can now truly be tea connoisseurs, using different teas for different occasions,

just as with wine or specialty coffees. Many small companies are serving this market,

setting up the possibility of future merger and consolidation activity.

The growing popularity of tea is reflected in the foodservice arena, where tea houses

are luring former coffeehouse customers with a calmer, more serene ambience.

Because tea is a global and agricultural commodity, theres also interest in organic tea

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production and labels such as "fair trade" that ensure a socially responsible purchasing

system.

Madan, Suri After a somewhat subdued performance in 2006 due to a recurrence

of the pesticides controversy, soft drinks sales bounced back strongly to record double-digit volume growth in 2007. With carbonates growth back on a positive upward curve

alongside burgeoning sales of fruit/vegetable juice and bottles water, soft drinks

showed impressive growth in 2007. Off-trade volumes grew slightly faster than on-

trade volumes, driven by higher consumption of packaged and branded soft drinks at

home and on the go. The emergence of supermarkets/hypermarkets, heavy consumer

promotions and various new product launches played a key role in driving off-trade

volume growth.

Bristow, Schneider, SchulerSoft drinks sales in 2007 were propelled by bottled

water and fruit/vegetable juice with their healthier positioning helping to drive sales of

soft drinks. While carbonates posted single-digit growth in 2007, rebounding from the

pesticides controversy of 2006, it was bottled water and fruit/vegetable juice that

stormed ahead with high double-digit growth rates. Poor municipal infrastructure for

tap water has pushed sales of bulk packaged water to households. Fruit/vegetable juice

is growing as a result of increased consumer expenditure on naturally healthy (NH)

beverages. While functional drinks and RTD tea also posted impressive growth in

2007, they were growing from a very small base and are yet to achieve a critical mass

in terms of establishing a loyal consumer base.

Anurada nayak, April 2007 (As a part of internship program

regarding consumption of juice through Christ College, Bangalore)a

consumer sampling involving 5.5 lakh people revealed that.

The approximate age of the consumers was to be guessed and noted down. Around

50% of consumers fall in the 25 years to 35 years and 35 years to 45 years age groups

and the other 50% is distributed among the other age groups. More than half the people

who tasted the product liked the product, i.e. they gave positive feedback about the

product and 15% of the consumers did not like the product. Out of the remaining 19%

of consumers, 11% people came up with mixed reactions i.e. they had reasons both to

like and dislike the product and a small chunk of 8% of the total consumers sampled13


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with, said they did not like the drink too much, neither did they love the drink. Males

and females have the same kind of reaction towards the product. About 70% of the

both males and females liked the product. This may be due to the fact that juice is a

universal favorite and people across the world, across both genders love having orange

juice. Around 20% of both males and females gave an average rating to the products

and the rest were confused.

Price waterhousecoopers prepared for Indian brand equity foundation (IBEF),

Udiyod vihar gurgaon) Cola major, Coke, brought down the average price of its

products from around twenty cents to ten cents, therefore bridging the gap between soft

drinks and other local options like tea, butter milk or lemon juice. It also doubled the

number of outlets in rural areas from 80,000 during 2001 to 160,000 the next year,thereby almost doubling its market Penetration from13 per cent to 25 per cent. This

along with greater marketing, led to the rural market accounting for 80 per cent of new

Coke drinkers and 30 per cent of its total volumes the rural market for colas grew at 37

per cent in 2002, against a 24 per cent growth in urban areas. The per capita

consumption in rural areas also doubled during 2000-02.

BHU ban on cola drinks a godsend for fruit-sellers (Cronicle article,

2007) the administration of the Asia's biggest residential varsity has from August one

last banned the consumption, sale and availability of junk food, cola and carbonated

drinks, besides all types of tobacco products in pursuance of a University Grants

Commission (UGC) directive. ''Acting on a UGC directive circular was issued by the

BHU registrar Natrajan Sunderam on July 25 last to ban the consumption and sale of

cold drinks on both North and South campus of the university at Varanasi and

Mirzapur respectively. We are consulting experts at the Law Faculty to cancel the cola

selling licenses of shops and canteens selling carbonated drinks on the varsity campus

as well as schools and colleges affiliated to BHU,'' Chairman of BHU Press,

Publication and Publicity Cell chief Rajesh Singh said here today. The ban on

consumption and sale of junk food, carbonated/cola drinks as well as tobacco products

was imposed by BHU in pursuance with a UGC directive prompted by Union Health

and Family Welfare ministry observations that growing consumption of such products

among young and adolescent population in schools and colleges is contributing to the

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growth of chronic degenerative non-communicable diseases such as obesity,

hypertension, cardio-vascular problems, diabetes, stroke and cancer.

J Parker soft drinks is expected to post a strong performance on the back of increasing

affluence amongst consumers and evolving lifestyles which lead to consumers devoting

less time to preparing fresh food and drink at home. Competition from the unorganised

sector will diminish gradually as consumers show greater aversion to buying

unpackaged and unbranded soft drinks from street vendors due to health and hygiene

concerns. Rising health consciousness is also expected to drive sales of naturally

healthy (NH) soft drinks such as 100% juice and mineral water. In addition, soft drinks

such as sports drinks and juice-based carbonates are also expected to fare well over the

forecast period as consumers perceive them to be healthy. (PoS) displays and gift

packs of concentrates are also drawing consumer attention in

supermarkets/hypermarkets.

Brandon F. Greene, Mark Rouse, Richard B. Green, and Connie Clay Control of

market share is the key issue in this study. The situation is both Coke and Pepsi

are trying to gain market share in this beverage market, which is valued at over $30

billion a year. Just how this is done in such a competitive market is the underlying

issue. The facts are that each company is coming up with new products and ideas inorder to increase their market share. The creativity and effectiveness of each

company's marketing strategy will ultimately determine the winner with respect to

sales, profits, and customer loyalty. Not only are these two companies constructing

new ways to sell Coke and Pepsi, but they are also thinking of ways in which to

increase market share in other beverage categories. Although the goal of both

companies is exactly the same, the two companies rely on somewhat different

marketing strategies. Both companies have also relied on finding new markets,

especially in foreign countries. In the foreign markets, Coke has been more

successful than Pepsi. For example, in Eastern Europe, Pepsi has relied on a barter

system that proved to fail. However, in certain countries that allow direct comparison,

Pepsi has beat Coke. In foreign markets, both companies have followed the marketing

concept by offering products that meet consumer needs in order to gain market share.

Both companies cannot just sell one product; if they do they will not succeed. They

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have to always be creating and updating their marketing plans and products.

The Companies must be willing to accommodate their target markets. Gaining

market share occurs when a company stays one-step ahead of the competition by

knowing what the consumer wants. Apart from this study previous studies were based

on the distribution network and market share of some of these beverages companies.

This study is based on to find out the market share of coca-cola in some of the areas of

Kanpur city.

Christoph Wappler Pepsi is often second to Coke in terms of sales, but outsells

Coca-Cola in some localities. Around the world, some local brands do compete with

Coke. In I n d ia, Coca-Cola ranked third behind the leader, Pepsi-Cola, and local drink

T h u m s U p . However, T h e C o c a - C o la C o m p a ny Purchased T h u m s Up in 1993. As of

2004, Coca-Cola held a 60.9% market- share in India. T r o p ic o la, a domestic drink, is

served in C u b a instead of Coca-Cola, in which there exists a United States embargo.

M ecc a C o la annd Q ib la C o la , in the M id d le east , is a competitor to Coca-Cola. In

T u r k e y , C o la T u r k is a major competitor to Coca- Cola. In Ir a n annd also many

countries of Middle East, Z a m Z a m C o la annd P a r s i C o la are major competitors to

Coca-Cola. Coca-Cola Co. slightly increased its lead over rival Pepsi-Cola Co. in

2002, thanks to the successful launch of Vanilla Coke and the growth of Diet Coke,

according to U.S. soft drink industry rankings released last week. Coke gained 0.6

percentage points in market share and increased its case volume by 2.1 percent,

according to Beverage Digest/Maxwell, a New York-based industry newsletter and

data service. The company captured a larger share of the market even though its

Coke Classic brand fell 0.6 percentage points in market share. Coca-Cola dominates

44.3 percent of the U.S. soft drink market, but saw its market share drop between

1999 and

2001. With the latest gains, it's only 0.2 percentage points away from where itstood in

1998 at 44.5. Pepsi-Cola lost 0.2 percentage points in market share. The No. 2

company commands 31.4 percent of the U.S. soft drink market.

Grobler & Herbst In 1990, when Indian government opened the market to

multinationals, Pepsi was the first to come in. Thums Up went up against the

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http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/w/index.php?title=Tropicola&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Tropicola&action=edit&redlink=1http://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Qibla_Colahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/w/index.php?title=Tropicola&action=edit&redlink=1http://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Qibla_Colahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/India


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international giant for an intense onslaught with neither side giving any quarter.

With Pepsi roping in major Indian movie stars like Juhi Chawla, to thwart the

Indian brand, Thums Up increased its spending in the Cricket sponsorship. Then the

capacity went from 250ml to 300ml, aptly named MahaCola. This nickname gained

popularity in smaller towns where people would ask for "Maha Cola" instead of

Thums Up. The consumers were divided where some felt the

Pepsis mild taste was ratherbland .

In 1993 C o ca - C o la re-entered I n d ia after prolonged absences from 1977 to 1993. But

Coca-Colas entry made things even more complicated and the fight became a three-

way battle. That same year, in a move that baffled many, Parle sold out to Coke for

a meager

US$ 60 million (considering the market share it had). Some assumed P a r le had lost

the appetite for a fight against the two largest cola brands; others surmised that the

international brands seemingly endless cash reserves psyched-out Parle. Either

way, it was now Coca-Colas, and Coke has a habit of killing brands in its portfolio

that might overshadow it. Coca-Cola soon introduced its cola in cans which was

all the rage in India, with Thums Up introduced alongside, albeit in minuscule

numbers. Later Coca- Cola started pulling out the Thums Up brand which at that

time still had more than 30% market share

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http://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Parlehttp://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Parle


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CHAPTER-2

INTRODUCTION TO

INDUSTRY

AND

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ORGANISATION

2.1 INDUSTRY PROFILE

Indias one billion people, growing middle class, and low per capita consumption ofsoft drinks made it a highly contested prize in the global CSD market in the early

twenty-first century. Ten percent of the countrys population lived in urbanareas or

large cities and drank ten bottles of soda per year while the vast remainder

lived in rural areas, villages, and small towns where annual per capita

consumption was less than four bottles. Coke and Pepsi dominated the market and

together had a consolidated market share above 95%. While soft drinks were once

considered products only for the affluent, by 2003 91% of sales were made to thelower, middle and upper middle classes. Soft drink sales in India grew 76%

between 1998 and 2002, from 5,670 million bottles to over 10,000 million (See

Exhibit 6) and were expected to grow at least 10% per year through 2012.28 In spite

of this growth, annual per capita consumption was only 6 bottles versus 17 in Pakistan,

73 in Thailand, 173 in the Philippines and 800 in the United States29. With its large

population and low consumption, the rural market represented a significant

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opportunity for penetration and a critical battleground for market dominance. In 2001,

Coca-Cola recognized that to compete with traditional refreshments including lemon

water, green coconut water, fruit juices, tea, and lassi, competitive pricing was

essential. In response, Coke launched a smaller bottle priced at almost 50% of the

traditional package.

Carbonated Soft Drinks

At the core of the beverage industry is the carbonated soft-drink category. The

dominant players in this area (Coca Cola, Pepsi, and Schweppes) own virtually all

ofth eNorth American markets most widely distributed and best- known brands. They

are dominant in world markets as well. These companiesproducts occupy largeportions of any supermarketsshelf space, oftencovering more territory than real foodcategories like dairy products, meat, or produce. As with many mature retail industries,

the beverage giants have a problem growth in the sales of their flagship carbonated

products are at a near standstill in the key

U.S. market, with 1% growth or less. After years of rapid growth, it seems that th e

average American cant drink any more flavored, fizzy soda water. T o remedythat,

these three companies are rapidly expanding both globally as they enter and

promote new markets for existing products and locally, as they add products from

adjacent beverage categories in the supermarket, in categories that are still

expanding. We'll talk about these areas in a later posting.

The prototype of all marketing and branding struggles, the Cola Wars keep

expanding. The Pepsi and Coca Cola keep rolling out the big guns: dueling pop stars,

and new branded products in the form of Vanilla Coke andPepsiBlue. They are

fighting on the TV, in the fast-food restaurants, and in the supermarkets; they are also

dueling in the schools. One of the biggest pushes of the last few years has been

convincing school districts, universities, and other institutions to go all-Coke or all-

Pepsi, in return for a (small) cut of the gross sales.

Selling costly sugared water and building an increasing demand for it, even in

Third World countries, involves marketing in its purest form, unsullied by any

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preexisting need or local tradition. Markets in Eastern Europe, China, India, and

Mexico, among others, are expanding fast, and both Coke and Pepsi are finding local

partners (bottlers) in these countries to keep extending their reach. And while the

American market may be mature, theresstill anopportunity worldwideto replace hot

beverages like coffee and tea that require some preparation with these cold, iconic.

All this worldwide activity cant disguise an unpleasant core reality for the

vendors: U.S. carbonated soft drink sales increased only 0.5% in the year 2002.

Although total sales for the industry was up slightly, per capita consumption was

down for the third year in a row In other words, domestic soft drink growth is not

keeping pace with population growth

Overall soda market

In fact, Coke and Pepsi have a third major rival on the bottled soft drink shelves,

namely Cadbury-Schweppes. The big three carbonated beverage makers now exist in a

stable oligopoly those changes only by small increments and which controls over 90%

of the market. Over the years, Cadbury-Schweppes (the result of a merger

between a British candy company and a British beverage company) has improved

its position by acquiring key brands in the US, namely Dr. Pepper and Seven-Up,

along with A & W and Canada Dry.

In past decades, the carbonated beverage section had been the beneficiary of an

amazing record of growth, where consumption has more than doubled over the

past 25 years. Americans consume twice as much soda as they did 25 years ago, up

from 22 gallons per person per year to over 56.

In 2000, these three companies had almost exactly the same share of the U.S. market

they had in 1999, namely:

Company Percentage Brands

Coca Cola 44.1% Coke, Sprite, Barq, Fanta, Mello Yellow, etc.

PepsiCo 31.4% Pepsi, Mountain Dew, Mug, Slice, etc.

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While individual flavors go up and down, the relative market share of the big three

changes at a glacial rate. The next biggest North American soda company, the

Canadian-based Cott Beverage Company, had only a little over 3% of the market and

that company specialize in supplying private label soda to supermarkets and other

chains.

In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola drink to

battle against the big guys. This gave the company more shelf position and

immediately gave the RC Cola brand, long a distant also-ran with weak marketing

muscles, more sales and market presence. Pepsi gave itself a small boost because of

the popularity of newly introduced Mountain Dew Code Red, a hyper-caffeinated soda. Cokes numbers declined slightly.

The market share figures in 2001.

Company Percentage

Coca Cola 43.7%

PepsiCo 31.6%Cadbury/Schweppe 15.8%

Its pretty indicative of this mature market that the only major move in market share

comes through a takeover. Moreover, the takeover targets that are left are so small that

the biggest remaining brand doesnt make more than 1% difference in total volume

New age beverages

In the last part of our look at the beverage business, we noted that oligopolies

Coca Cola, PepsiCo, and Cadbury Schweppes had "flooded" a mature market, so that

there was minimal growth potential in the carbonated beverages category. So, how

can these companies grow, something all oligopolies are compelled to do? First,

by expanding internationally. Second, by acquiring or adding new products in

other beverage areas, which show both faster growth and less well- defined

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competition. In fact, other beverage types have only in the last decade come into

focus as separate, important categories. So the search for new beverage footholds has

become the second front of the Cola Wars. There is a scramble for new territories in

beverage shelf space, and Coke and Pepsi are investing heavily.

These a l t e r n a t i ve beve r ag es a r eas were e s t ab l i s he d by s t a r t up o r

s m a l l c a p companies, including Snapple and Arizona Iced Teas, Ocean Spray and

Nantucket Nectars, SoBe and Calistoga. The emerging categories began to look like

both a threat and an opportunity for the big three. In 2001, according to Beverage

Age Magazine. The segments of alternative or "New Age" beverages ranked by

order of sales, were:

Bottled water in clear plastic containers

Mildly flavored water (Clearly Canadian, Veryfine, Acqua Vie)

Fruit juices and drinks (some shelf-stable, like Ocean Spray, Mott's, DelMonte;

some refrigerated, like Nantucket Nectars, Tropicana)

Sports and energy drinks (Gatorade. Powerade, SoBE Power, Red Bull, G- Up)

Iced tea (Snapple, Arizona, Lipton,Nestea) Premium soda (Thomas Kemper Soda,

Jones Soda)

Cold coffee drinks (Starbucks cappuccino drinks, PlanetJava, Arizona)

Vegetable/fruit juice blends, (V8, Odwalla)

Enhanced dairy drinks (Smooth Moos, Chocolate Moose Energy Shakes, drinkable

yogurt)

Soy-based and other non-dairy beverages (Odwalla, Health Source)

Other nutrient-enhanced beverages, so called nutriceutical beverages

(SoBe, Hansen, Naked Juice, Fresh Samantha).

The problem with this market, like most emerging categories in the grocery

business, is an excess of vendors and products, making it hard for retailers to

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decide who to assign their precious shelf space to. This is accompanied with an even

larger number of SKUs of different sizes and flavors, causing generally chaos in

the market. That makes for a great opportunity for the oligopolies, which have

entered into these markets in a big way.

Bottled Water

The bottled water industry in North America is growing aggressively. It is the fastest

growing segment in the beverage industry (around 30% annually, compared to 1% or

so in carbonated beverages), and the cost of goods sold is almost negligible. Once

confined to Perrier and Evian sippers at fancy restaurants or people with bad--tasting

local tap water, there's been a tripling of US consumption since 1985. As a recent

FORTUNEmagazine article put it,

The most brutal battle in the beverage industry is the one for dominance of bottled

water. With the niche growing at a 30% annual clip, bottled water will likely catapult

ahead of coffee and beer to become the second-best-selling beverage--just behind soft

drinks--by 2005. (Currently bottled water's barely ahead of No. 5 milk).

Another article in Beverage Marketing notes the concentration of the market as water

gets to be a bigger deal.

Super marketers have revolutionizing the industry. Since the costs of buying and

holding shelf space is so expensive, the small, regional firms, which used to be major

water suppliers, are being priced out. The only companies that can get their products

on the shelves are the new water oligopolists, large national and multinational

companies. Four companies now dominate the North American market for bottles

water: Nestle, Danone, Coca Cola, and Pepsico.

Like other areas of the beverage market, water, once the province of small, local

spring bottlers and a few European importers, has now become an oligopoly.

While Nestle (originally a Swiss chocolate company) and Danone (originally a French

dairy firm) have been in the market for a while, Pepsi and Coke are Johnnies-come-

lately to the market, Pepsi in 1995 and Coca Cola in 1999. But they have so much

marketing savvy, power in the distribution and bottling area, and store presence, that

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selling brands in the US market. That's in spite of the fact that, unlike most of the

competitors, these are simply filtered and bottled local tap water. Yet bottles of the

either of these essentially free liquids sell for almost the same a similar container of

soda or iced tea. Not a bad business to be in!

Both companies use their vast experience in associating drinks with lifestyle,

sharpened during the cola wars. They are ramping up their ad budgets and getting

significant growth in volume as they do so. And they have a big opportunity.

According to estimates, one third of American households have never tried bottled

water, and carrying around a bottle of water has become a status symbol for many

younger Americans.

Nestle is in fact the overall market leader, with $2.5 billion overall in water sales. It

sells a number of brands that are popular in various regions of the country, such as

Poland Spring in the Northeast. Arrowhead and Calistoga in California, and so on.

These are actual spring waters that have to be trucked to the bottler. Nestle also

sells Perrier, San Pelligrino, and some other European imports.Danone is number four

in volume, with its imported Evian, Volvic, and others, along with Naya and

Sparkletts from the U.S. Of the big four, Danone is the one that is sinking, losing sales

to the others. In fact, they just signed an agreement with Coca Cola to market and

distribute several of its brands in the US, including Dannon and Sparkletts, and

some economy brands. Evian and other European brands will not be affected.

In 2002, these four companies had achieved over 60% of the water sales in the US, and

that was rapidly expanding. Only two competitors have shares over 2%: Suntory

Group (part of a Japanese conglomerate) and independent Crystal Geyser. Our guess is

that minor brands will more and more be crowded off the shelf. (By the way, Cadbury-

Schweppes has a limited water role at present.)

Supermarket sales of cases of water are starting to show competition, as Nestle, Coke,

and Pepsi are starting to compete on price as a Wall Street Journalreport noted. Coke

and Pepsi are trying to avoid a water version of the cola wars, in which they

battled it out with price, cuts in the supermarket aisle. That's why they're

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concentrating some 60% to 70% of their sales in the lucrative business of selling

single, cold bottles in But the next step is differentiating waters by making them

vitamin-enriched nutriceutucals. Pepsi, through its Gatorade subsidiary, now offers

Propel, enhanced with vitamins and minerals. It is also selling something called

Aquarian Essentials, which is flavored water (some sugar added), doubtless a healthy

drink. Coke is selling Dasani Nutriwater, a similar gimmick. Even the water category,

only recently discovered by these companies, is now spawn new categories, opening

new fronts in the cola wars.

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2.2 COMPANY PROFILE

Headquarters: One Coca-Cola PlazaAtlanta, GA 30313Employees: 71,000CEO: Muhtar KentStock Symbol: KO

Website: http://www. coca -cola. co m

Coca-Cola is the world's leading beverage company. The company is the world's

leading manufacturer, marketer, and distributor of nonalcoholic beverage

concentrates and syrups, used to produce nearly 400 beverage brands.

The company makes and distributes sodas, waters, fruit juice, teas and coffees and

energy drinks. Through the world's largest beverage distribution system, consumers

in more than 200 countries drink the company's beverages at a rate exceeding 1.5

billion servings each day.

Major brands include Coke, Diet Coke, Sprite, Bacardi, A&W, Minute Maid, Dasani,Nestea, Powerade and Hi C.

In 2007, revenues were $28.8 billion, a 20% increase from the previous year, and net

income was $5.9 billion. Unit volume increased 6%.

In 2007, the company said it will acquire Energy Brands, Inc., known as glacau, and

its full range of fast-growing, enhanced water brands, including Vitamin Water for

$4.1 billion.

Coca-Cola announced in September it is investing more than $60 million to build the

world's largest plastic-bottle-to-bottle recycling plant and support recycling in the

U.S. These investments are part of a comprehensive goal to recycle or reuse 100

percent of the Company's plastic bottles in the U.S.

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2.3 MFG. PROCESS OF COCA-COLA PRODUCTS

INGREDIENT DELIVERY

Sweetener

Team of professionals, work on selecting, auditing, sampling, testing, approving and

then authorizing the sugar suppliers and the list of such authorized suppliers with

approved sugar lots and along with the certificate of analysis are sent across to all the

bottling unit for procurement.

Secret Formula

Created in special concentrate plants, it's delivered, held and used under strict

controls to maintain its integrity and security. Each unit of concentra te is

especially identifiable to allow the "history" of each component to be researched at any

stage of production, storage or use.

CO2 Formula

When delivered to the plant, carbon dioxide, or CO2, comes in cylinders for easy

delivery and storage. But what is it? In essence, it's a colorless and odorless gas that

provides the fizz for our beverages. But its also a by-product of our breathing

and used by plants and trees to produce oxygen.

Water

Since water is a key component to all our beverages, its quality is critical. And,

since public water quality varies around the world, each plant further treats the water it

uses. This means that before water is added to any of our beverages; it's rigorously

filtered and cleansed. We then continuously sample the water to ensure it meet our

standards.

Materials

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Ingredients are not the only things delivered to the plant. Other materials such as

Bottles, cans, labels and packaging are also delivered. Our plants in India use

refillable bottles, CANS, PET etc. in the Production Process, when bottles and

cans are delivered to the plant; they are carefully inspected to ensure that theymeet our exacting standards. Once these have passed initial inspection, they move on

to be washed and/or rinsed.

WASHING AND RINSING

To ensure quality, each bottle is washed, sanitized and rinsed before being filled.

While this sounds simple, the actual steps can differ by bottling plant. In India, our

plants use refillable glass, cans or PET bottles. To ensure they meet our

cleanliness standard, bottles are first hit with precise jets which remove any dirt or

debris. They are then soaked in a high-temperature deep cleaning solution that

removes any remaining dirt and sanitizes them. The bottles then move to the

"hydro wash" where they are washed again with a deep cleaning pressure-spray.

MIXING AND BLENDING

H2O and Sugar

Mixing and blending begin with the steps of mixing pure water with refined sugar,

Which creates simple syrup. The syrup is then measured for the correct amount of

Sugar.

Secret Formula

Secret formula is... still secret! That's right; the secret formula remains a mystery to

the millions of people in nearly 200 countries that enjoys our refreshing beverages

everyday. Even though company can't tell you the secret, you can be sure that "LIFE

TASTES GOOD" with Coca-Cola.

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H20 and Syrup

With the syrup nearing its final state, we mix it with pure water, creating the

finished uncorroborated beverage. However, the water and syrup must be mixed in

right ratio. This is done by the beverage proportioning equipment. It accurately

measures the correct ratio for each and sends this mixture to the carbonator.

CO2 Adding

Adding CO2 or carbon dioxide gas is the final touch that carbonates the beverages.

Carbon dioxide not only gives our beverages their effervescent zest, but it also

adds to the distinctive and familiar taste everyone has come to expect from our

beverages.

FILLING

Once all the ingredients have been mixed and blended and the bottles have been

cleaned and sanitized, we're ready to start filling. This is a surprisingly complex

process requiring precision at each step. To begin with, bottles must be carefully timed

as they move to the filler - synchronization is key. Once at the filler, bottles are either

held securely in place by flexible grippers or precisely placed under filling valves by

centering devices. Before the bottles can be filled, the inside of the bottles must be

pressurized. This allows for the force of gravity itself to draw the beverage into the

bottle - a process that ensures the smooth flow of liquid, with little to no foaming.

CAPPING

Once filled, bottles are then capped. We use different caps for different bottles - glass

bottles are usually topped with a metal crown while "PET BOTTLES" are topped with

a plastic screw-top. Each cap type then moves through different parts of the machine,which ensures each cap stays scratch free and is in the right position to be

precisely placed on the bottle. As quality and freshness are key, we use a "no closure"

detector during the capping process and a "go-no-go gauge" or "torque meter" after the

bottles has been capped. The "no-closure" detector checks if a screw top or crowns

has been placed on bottle. The process actually stops if the detector doesn't find a

closure. The "go-no-go gauge" checks for the proper crown crimp and the "torque

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meter" checks to make sure the screw-top is good and tight. If the bottle cap isn't

just right, the beverages can become flat or be affected in other ways. If this happens,

the bottle is discarded.

LABELING

Once the bottles have been filled and capped, they move on to be labeled. A

special machine dispenses labels from large rollers, cuts them and place on the bottles.

For special labels such as commemorative bottles for football championships, the

labels are sent to the bottling plants for approval, and then used for packaging.

Depending on the occasion, some of these special bottles will go only to the specific

locations. For example, a national football championship bottle will be sent only to the

home town or state of the championship team.

CODING

The bottle is now ready to be coded. Each one of our beverages is marked with a

special code that identifies specific information about it. The codes simply identify the

date the beverages was bottled or canned. These codes identify the date, time, batch

no. and the MRP. Product coding allows us to ensure that u receive our beverages at

their flavorful best.

INSPECTIION

We inspect bottles at many points during the process. With refillable bottles, it

happens they are first brought into the plant. They are also inspected after they are

washed and again after they are filled. Inspectors look for external bottle imperfections

and make sure each bottle has the right amount of beverages. Even after filling, each

plant samples bottles for analysis in its lab to ensure quality is up to standards.

PACKAGING

Once our filled beverages have passed final inspection, they are ready to be

packaged for delivery. Generally, packing can refer to everything from the unique

"BOTTLE" and "CAN" designs, to label designs, to cardboard boxes and containers,

to plastic rings. Because the needs and tastes of our consumers are so diverse, the

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WAREHOUSING & DELIVERY

In order to make sure the freshest beverages possible get to you, each warehouse must

efficiently manage the thousands of beverages cases produced each day. Beverage

organization is key, though it's the bottle and can coding that allow for the necessary

precision. From the warehouse, we load beverages onto our distinctive trucks. Night

and day, our trucks are de livering our refreshing beverages to stores, soda

fountains, and vending machines near you

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.

2.4 History

The first Coca-Cola recipe was invented in a drugstore in Columbus, Georgia by John Stith

Pemberton, originally as a cocawine called Pemberton's French Wine Coca in 1885. 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

Cola. 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. Pemberton claimed Coca-Cola cured many diseases, including morphine

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-Colasold by three separate businesseswere 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.

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Old German Coca-Cola bottle opener

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 for 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 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 werenot 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.

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2.5 MILESTONES

May of 1886 Pemberton concocted caramel- colored syrup in a three legged brass kettle in

his backyard. He first distributed the new product by carrying Coca Cola in a jug down the

street at Jacobs pharmacy. And for five cents, consumers could enjoy a glass of Coca Cola

at the Soda fountain. Whether by design or accident carbonated water was teemed with new

syrup, producing a drink that was claimed delicious and refreshing.

1886

Sales of Coca-Cola averaged nine drinks per day. That first year, Dr. Pemberton sold 25

gallons of syrup, shipped in bright red wooden Kegs. Res has been a distinctive color

associated with No. 1 soft drink brand ever since.

1891

Atlanta entrepreneur G. Candler had acquired complete ownership of Coca Cola

business. Within four years, Candlers merchandising flair helped expand consumption of

Coca Cola to every state and territory.

1893

In January Coca Cola was registered in the US patent office.

1894

The first syrup plant outside of Atlanta was opened in Dallas.

1906

First two countries outside USA to bottle Coca Cola were Cuba and Panama.

1915

Route Class Company created the Coca Cola counter glass bottle.

1917

3 million cokes sold per day...

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1919

Coca Cola company sold to a group of investors for $25 million.

1923

R.W Woodruff became president of the Coca Cola Company. His more than six decades

of leadership took the business to unrivaled heights of commercial success, making Coca

Cola an institution the world over.

1925

6 million Cokes sold per day.

1927

The first Coca Cola radio advertisement.

1928

Annual bottled Coca Cola sales exceeded fountain sales for the first time.

1929

Advertising slogan-The pause that refreshes

1936

Coca Cola Company observed its 50 anniversary.

1940

Coke is bottled in more than 40 countries.

1945

Coke is registered as a trademark by US Patent trademark office.

1956

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Advertising slogan-Coca Cola, making good things taste better.

1960

Metal Cans introduced. Coca Cola Company purchased the Minute Maid Corporation.

1961

Sprite was introduced.

1969

Hellenic Bottling Company S.A. is headquartered in Athens.

The Coca-Cola Company grants bottling rights in Greece.

1970

Advertising slogan Its the Real thing.

1971

The song Id like to buy the world a Coke was released.

1979

Advertising slogan- Have a Coke and a Smile.

1981

Kar-Tess Holding S.A. acquires 99.9 per cent interest in Hellenic Bottling Company S.A.

1982

Diet Coke was introduced in July

1988

Coca-Cola was the first independent operator in USSR.

1989

Advertising slogan-Cant beat the feeling.

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1991

Hellenic Bottling Company S.A. shares are listed on the Athens Stock Exchange.

1993

Coca-Cola exceeds 10 billion cases sold worldwide.

1998

Coca-Cola Amatil Limited de-merges its European operations, resulting in the formation

of Coca-Cola Beverages plc.

2000

Coca-Cola Beverages plc is acquired by Hellenic Bottling Company S.A. to form Coca-

Cola Hellenic Bottling Company S.A.

Included in the social responsibility index FTSE4Good.

2001

Coke 200ml was launched known as chotta coke in inda.

2002

Acquired all bottling operations in the Baltics.

Acquired Valser Mineralquellen AG in Switzerland and Dorna Apemin in Romania.

Coca-Cola Hellenic Bottling Company S.A. lists its American Depositary Receipts

(ADRs) on the New York Stock Exchange.

FTSE4Good listing confirmed under the new stricter environmental, social and humanrights criteria.

2003

Twentieth anniversary of our Amita juice brand, the market leader in Greece with 29

flavours.

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Recapitalisation plan results in a return of 2 per share to shareholders.

Acquired Multivita sp. z.o.o, in Poland and Rmerquelle GmbH in Austria.

Acquired the Greek potato chip company Tsakiris S.A.

First country operations certified OHSAS 18001.

2004

Acquired Gotalka d.o.o., a water company in Croatia.

Eight Coca-Cola Hellenic Bottling Company territories join the European Union (EU).

Published the first Global Reporting Initiative (GRI) report in the non-alcoholic beverage

industry.

2005

Acquired Vlasinka d.o.o. mineral water company in Serbia and Bankya Mineral Waters

Bottling Company E.O.O.D. in Bulgaria.

Acquired the Multon Z.A.O. Group, a leading Russian fruit juice company.

Acquired Vendit Ltd, one of the largest independent vending operators in Ireland.

Signed the UN Global Compact.

Ratified the UNESDA commitments to the EU Platform on Diet and Health.

Launched the Green Danube Partnershipwith the International Commission for the

Protection of the Danube River (ICPDR).

2006

Sales volume exceeds 500 million unit cases of non-sparkling drinks for the first time in

one year.

Acquired the Fresh & Co d.o.o. Group, a leading Serbian fruit juice company.

Acquired Lanitis Brothers Public Limited, the Coca-Cola bottler in Cyprus.

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Acquired Fonti Del Vulture S.r.l., a producer of high quality mineral water in Italy.

Acquired Yoppi Kft., a hot and cold beverage vending operator in Hungary.

Named Notable Reporter on Progress by theUN Global Compact.

2007

Acquired Eurmatik, a full-line vending operator in Italy.

Acquired a newly constructed beverage production facility, Aquavision in Russia.

Signed the UN Global Compact CEO Water Mandate, Caring for Climate statement and

the Bali Communiqu.

Announced intent to build 15 combined heat and power (CHP) units to reduce total

carbon dioxide emissions from operations by 20 per cent.

Opened the first industry-owned PET-to-PET recycling plant.

Achieved the milestone of two billion unit case sales volume in one year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) per annum in

excess of 1 billion for the first time.

Launched guideline daily amount (GDA) labelling in the EU states.

2008

Formed three-party joint venture with The Coca-Cola Company and illycafe SpA, Italy's

producer of premium coffees, to manufacture, market, sell and distribute premium ready-to-

drink (RTD) iced coffee products.

Acquisition of Socib, the second largest Coca-Cola franchise bottler in Italy.

Included in the Dow Jones Sustainability Indexes (DJSI).

2009

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Agreement with Campbell Soup Company regarding the distribution by Coca-Cola

Hellenic of Campbell soup and broth products throughout Russia.

2.6 COCA-COLA DATES AND SLOGANS

1886 Drink Coca-Cola.

1904 Delicious and Refreshing.

1922 Thirst knows no reason.

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1927 Around the corner forms anywhere.

1929 The pause that refreshes

1936 Its the refreshing thing to do.

1948 Where theres Coke Theres Hospitality

1952 What you want is a Coke

1956 Coca-Cola makes Good Things Taste Better

1958 The Cold, Crisp taste of Coke

1963 Things Go Better With Coke

1970 Its the Real Thing

1975 Look up America

1979 Have a Coke and a Smile

1982 Coke is it!

1987 You Cant beat the Real Thing

1990 Taste Thunder Thums up

1993 Always Coca-Cola

1999 Life ho to aisi-India

2002 Thanda matlab Coca-Cola-India

2.7 PRODUCT RANGE OF THE COMPANY

Energy Drinks

For those with a high-intensity approach to life,

Coca Colas brands of Energy Drinks

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Contain ingredients such as ginseng

Extract, guarana extract, caffeine and B

Vitamins.

Juices/Juice Drinks

We bring innovation to the goodness of juice in

Coca Colas more than 20 juice and juicedrink

Brands, offering both adults and

Children nutritious, refreshing and flavorfulbeverages.

Soft Drinks

Coca Colas dozens of soft drink brands

Provide flavor and refreshment in a variety of

Choices. From the original Coca-Cola to

Most recent introductions, soft drinks from the

Coca-Cola Company are both icons and

Innovators in the beverage industry.

Sports Drinks

Carbohydrates, fluids, and electrolytes team

Together in Coca Colas Sports Drinks,

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Fitness-seekers at any level.

Tea and Coffee

Bottled and canned teas and coffees

Provide consumers' favorite drinks in

Convenient take-anywhere packaging,

Satisfying both traditional tea drinkers and

Todays growing coffee culture.

Water

Smooth and essential, our Waters and Water

Beverages offer hydration in its purest form

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Other Drinks

So much more than soft drinks. Coca

Colas brands also include milk products,

Soup and more so you can choose a Coca Cola

Company product anytime, anywhere for

Nutrition, refreshment or other needs.

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2.8 BRANDS OF

INDIA

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Coca-Cola Mainly preferred by the Youngster & Kids.

Thums-Up Youngster

.

Limca Common Drink.

Fanta Basically Preferred by Ladies and Kids.

Sprite Youth.

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Kinley Soda Mostly those who consume liquor.

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2.9 a MISSION

Our mission declares our purpose as a company. It serves as the standard against which we

weigh our actions and decisions. It is the foundation of our Manifesto.

To refresh the world in body, mind and spirit.

To inspire moments of optimism through our brands and our actions.

To create value and make a difference everywhere we engage.

2.9 b VISION:

Our vision guides every aspect of our business by describing what we need to accomplish in

order to continue achieving sustainable growth.

People: Being a great place to work where people are inspired to be the best they can be.

Portfolio: Bringing to the world a portfolio of quality beverage brands that anticipate and

satisfypeople's desires and needs.

Partners: Nurturing a winning network of customers and suppliers, together we create

mutual,enduring value.

Planet: Being a responsible citizen that makes a difference by helping build and supportsustainable communities.

Profit: Maximizing long-term return to shareowners while being mindful of our overall

responsibilities.

2.9c IMPROVED MISSION STATEMENT:

At Coca Cola we're committed to achieving business and financial success while leaving a

positive imprint on society delivering what we call Performance with Purpose.

Our mission is to be the world's premier consumer Products Company focused on

convenient foods and beverages. We seek to produce financial rewards to investors as we

provide opportunities for growth and enrichment to our employees, our business partners

and the communities in which we operate. And in everything we do, we strive for honesty,

fairness and integrity.


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2.9 d IMPROVED VISION STATEMENT:

Coca cola Co responsibility is to continually improve all aspects of the world in which we

operate environment, social, economic creating a better tomorrow than today."

Our vision is put into action through programs and a focus on environmental stewardship,

activities to benefit society, and a commitment to build shareholder value by making Coca

cola Co a truly sustainable company.


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2.10 COCA COLA - RATIO ANALYSIS

2006 2005 2004

$

Perc

ent $

Perc

ent $

Income Statement

(in (in (in

millions) millions) millions)

Revenue 24,088

100.

0% 23,104

100.

0% 21,962

Cost of Goods Sold 8,164

33.9

% 8,195

35.5

%

Interest Expense 220

0.9

% 240

1.0

%

Tax Expense 1,498

6.2

% 1,818

7.9

%

Income from Cont Operations 5,080

21.1

% 4,872

21.1

% 4,847

Net Income 5,080

21.1

% 4,872

21.1

%

Balance Sheet

16.0

%Cash 2,440

8.1

% 4,701

Short Term Investments 150

0.5

% 66

0.2

%

Accounts Receivable 2,704

9.0

% 2,281

7.8

% 2,171

Inventory 1,641

5.5

% 1,424

4.8

% 1,420

Current Assets 8,441

28.2

% 10,250

34.8

%

Long Term Investments 6,783

22.6

% 6,922

23.5

%

Net Fixed Assets 6,903

23.0

% 5,786

19.7

%


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Other Assets 7,668

25.6

% 6,469

22.0

%

Total Assets 29,963

100.

0% 29,427

100.

0% 31,327

Current Liabilities 8,890 29.7% 9,836 33.4%

Total Liabilities 13,043

43.5

% 13,072

44.4

%

Stockholders' Equity 16,920

56.5

% 16,355

55.6

%

Cash Flow

Cash Flow from Operations 5,957 6,423 5,968

Dividends Paid 2,912 2,679

Interest Paid 220 240

Per Share

Market Price at Year End 48.25 40.31

Earnings Per Share Basic 2.16 2.04

MAP: Showing Workforce [71,000 in

2006]


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2.11 CURRENT ORGANIZATIONAL CHART

CEO

EVP/ CFO

and

EVP/ Preside

nt

SVP &

SVP & SVP &

Presiden

t

Preside

nt Director Director

EVP & COO

General

Bottling MKT Human Public

Counsel

Invest/Strategy

Resources Affairs/

Supply

Commu

ni-

Chain -cation

Presiden

t Presiden

t

Presiden

t

Presiden

t Presiden

t

Latinof

Eurasia

of

African

of

PacificEuropea

n

America

Group Group Group

Union

GroupMarket


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2.12 E-COMMERCE:

Good points:

Brand Promotion

Attractive products selection

Look and feel 8

Provision of multimedia product, catalogue pages

Personal attention

Community relationships

Weak points:

Performance and service: that is not easy navigation, shopping and purchasing, and

prompt shipping and delivery.

Discount pricing is not being offered.


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Strengths

Worlds leading brand Coca-Cola has strong brand recognition across the globe. The

company has a leading brand value and a strong brand portfolio. Coca-Cola is one of

the leading brands in their top 100 global brands ranking in 2006.The value of the

Coca-Cola was $67,000 million in 2006. Coca-Cola ranks well ahead of its close

competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million

Furthermore; Coca- Cola owns a large portfolio of product brands. The company owns

four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and

Fanta. Strong brands allow the company to introduce brand extensions such as Vanilla

Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made

large investments in brand promotions. Consequently, Coca-cola is one of the best

recognized global brands. The companys strong brand value facilitates customer recall

and allows Coca-Cola to penetrate new m2arkets and consolidate existing ones. Coca-

Cola Company, The large scale of operations with revenues in excess of $24 billion

Coca-Cola has a large scale of operation. Coca-Cola is the largest manufacturer,

distributor and marketer of nonalcoholic beverage concentrates and syrups in the

world. Coco-Cola is selling trademarked beverage products since the year 1886 in the

US. The company currently sells its products in more than 200 countries. Of the

approximately 52 billion beverage servings of all types consumed worldwide everyday, be8verages bearing trademarks owned by or licensed to Coca-Cola account for

more than 1.4 billion. The companys operations are supported by a strong

infrastructure across the world. Coca-Cola owns and operates 32 principal beverage

concentrates and/or syrup manufacturing plants located throughout the world. In

addition, it owns or has interest in 37 operations with 95 principal beverage bottling

and canning plants located outside the US. The company also owns bottled water

production and still beverage facilities as well as a facility that manufactures juice

concentrates. The companys large scale of operation allows it to feed upcoming

markets with relative ease and enhances its revenue generation capacity. Robust

revenue growth in three segments Coca-colas revenues recorded a double digit

growth, in three operating segments. These three segments are Latin America, East,

South Asia, and Pacific Rim and Bottling investments. Revenues from Latin America

grew by 20.4% during fiscal 2006, over 2005. During the same period, revenues from


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East, South Asia, and Pacific Rim grew by 10.6% while revenues from the bottling

investments segment by 19.9%. Together, the three segments of Latin America, East,

South Asia, and Pacific Rim and bottling investments, accounted for 34.8% of total

revenues during fiscal 2006. Robust revenues growth rates in these segments

contributed to top-line growth for Coca-Cola during 2006.

Weaknesses

Negative publicity, Company received negative publicity in India during September

2006.The Company was accused by the Center for Science and Environment (CSE) of

selling products containing pesticide residues. Coca-Cola products sold in and around

the Indian national capital region contained a hazardous pesticide residue. These

pesticides included chemicals which could cause cancers, damage the nervous and

reproductive systems and reduce bone mineral density. Such negative publicity could

adversely impact the companys brand image and the demand for Coca-Cola products.

This could also have an adverse impact on the companys growth prospects in the

international markets. Sluggish performance in North America Coca-Colas

performance in North America was far from robust. North America is Coca-Colas

core market generating about 30% of total revenues during fiscal 2006. Therefore, astrong performance in North America is important for the company.

Summary in points:

Strengths:

Leading brand value and a strong brand portfolio

Coca-Cola, Diet Coke, Sprite and Fanta

Large investments in brand promotions

sells its products in more than 200 countries


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Company also owns bottled water production and still beverage facilities as well as

a facility that manufactures juice concentrates.

These three segments are Latin America, East, South Asia, and Pacific Rim and

Bottling investments

Return on total assets increases over the period consistently 2005, 06, 07 15.47%,

16.55%, and 16.95% respectively.

Weaknesses:

Negative publicity in India

Inventory turnover decreased by 13.29%

Return on equity decreased by 40.50%

Sluggish performance in North America Coca-Colas performance in North

America was far from robust

Collection form debtors decreased by 15.68%


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2.13 SWOT ANALYSIS

SWOT Analysis is a strategic planning tool used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats inside a company, project, or a business

venture. It involves identifying the internal and external factors that are

favorable/unfavorable for business to succeed

SWOT ANALYSIS FOR COCA COLA COMPANY

STRENGTHS

Brand equity/image & recognition

Product distribution and worldwide network

Solid financial performance

One of the world's most recognized brand.

Product diversification (water, juices, soft drinks, sport drinks, etc)

Co-operate identity.

Innovation

WEAKNESSES

Customer concentration, particularly in the US (Wal-Mart accounts for more than

10% of Coca Cola's business in the US)

A lot of customers lack strict brand loyalty towards Coca Cola.

Does not enjoy the number one position in Pakistan.

OPPURTUNITIES

Possible growing demand.

Expansion Reaching all segments.

Globalization


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Catering to Health Consciousness of People

Bottled water growth

Acquisitions of smaller players.

THREATS

Health Drinks Fruit Juice Companies

Key competitors (Pepsi, etc)

Commodity prices growth

Image perception in certain parts of the world.

Smaller, more nimble operators/players

1.14 Concept of RED:


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Right execution daily (RED) is the classification of outlets into Channel &

Category.

Lets know what are the Channel & categories respectively.

CHANNEL - Type of outlet like E&D (EATING AND DRINKING),

GROCERY, or CONVINIENCE?

E&D 1 - It i nc lu des Bakery/Sweet shops/QSR/Juice centers/Soft drink

shops/Tea shops etc.

E&D 2- It includes Sit down restaurants/Bars/Dhabas/Cafes etc.

GROCERY- Outlets primarily engaged in retailing of food and various houses

hold items.

CONVENIENCE-Includes outlets whi ch ar e s ma ll s t or es an d s ho ps ,

generally accessible locally.

CATEGORY -Standard class of outlets like SILVER, GOLD or DIAMOND?

SILVER- Those outlets which sells 200-499 crates per year.

GOLD- Those outlets which sells 500-799 crates per year.

DIAMOND- Those outlet which sells 800 & above crates per year.


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2.15 KANDHARI BEVERAGES Pvt. Ltd.

Kandhari beverages started operations in 1967. Initially it started FOBO operations of

Parle soft drinks. Then it started FOBO operations of Coca Cola on 3rd December

1993. Brands it initiated with were Thums Up, Gold Spot, Limca, Citra, Maaza. At

present it is with Coca Cola, Thums Up, Limca, Sprite, Fanta, Fanta Apple, Maaza,

Kinley, and Minute Maid Pulpy Orange.

PRODUCTION CAPACITY

Kandhari Beverages have two bottling plants one at Baddi and another at Nabipur.

Now days they are producing 50,000 to 60,000 cases per day but they have capacity of

producing 80,000 cases per day. In one run 4000 cases are produced. Production is

decided as per demand which is affected by various reasons.


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CHAPTER-3

PROJECT

PROFILE

3.1 OBJECTIVES OF THE STUDY

To know the market share of Coca-Cola.


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To ensure the availability and visibility of product.

To study the ac tiv at ionon ou tle tsof COCA-COLA Company.

To know brand preference of consumers in packaged drinking water in different

sectors of Chandigarh.

To study the demand of different products available of coca cola and Pepsi.

3.2 RESEARCH METHODOLOGY

A survey data collection method was used. Questions were asked randomly.

Data source

Primary data is collected for purpose of this study.

Research approach

Research Type -: it is an exploratory research for the purpose of the study.

Research method-: Survey method is used to get responses from the respondents.

Sampling plan

Sampling method -: Random sampling

Sampling Unit -:people who drink beverages.

Sample size -: Our sample size was

For soft drink survey

100 students

30 shops

For packaged drinking water survey

500 people


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3.3 SCOPE

For soft drink survey

This survey was done in institutions

Punjab Engineering College

Punjab University

DAV College

Government College For Girls

For packaged drinking water survey

This survey was done in high footfall areas of Chandigarh.

Sector 17

Sector 8 (Madhya marg)

Sector 9 (Madhya marg)

Sukhna lake

Rock Garden

Secretariat

Punjab University

Sector 10

Sector 11

Sector 22

Sector 34

Sector 15


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Sector 19

Sector 35

3.4 LIMITATIONS OF THE STUDY

It is possible that respondent have given biased reply.

Many Respondents do not drink packaged drinking water on regular basis so they

were not clear on there choice.

Because the areas of study were high footfall areas so people were mainly tourists

and the exact market situation and perception of chandigarh people was not cleared.

There are many local brands also which were not included in study so the result wasnot the actual percentage as these major players of local market were missing.

3.5SIGNIFICANCE OF THE STUDY

This study is helpful to find out the sales trends of the Coke products and its

effect on consumers value and satisfaction

To find out problem of the counters and to find out their requirement for more

sales.

Through this study company will know about the availability of its products in the

Market.

As the places where the study was conducted were high footfall areas so the study

of availability will play a very important role in increasing its market share.

The studies conducted tells about the over all availability, demand and competition

in major brands in high footfall areas of Chandigarh.

CHAPTER-4


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RESULT OF THE

SURVEY


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4.1SURVEY IN

EDUCATIONAL

INSTITUTIONS

Preference in between SSD and Juices

Consumers who prefer only SSD 30

Consumers who prefer only Juices 30

Consumers of like both of them 40


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Consumers who pre

SSD

Consumers who pre

Juices

Consumers who pre

both

Comparison of Coca Cola and Pepsi

Cola Flavor

Brands percentag

e


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Ko 82

Pc 6

both 12

K

P

B

Lemon Flavor

Brands percentage

Ko 22.72

Pc 45.45

both 31.81


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K

P

B

Orange Flavor

Brands percentage

Ko 85

Pc 10

oth 5


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K

P

B

Other Flavor

Brands percentag

e

Ko 18.18

Pc 63.63

both 18.18


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K

P

B

Consumer preference in Juices

Number of

respondents

100( single

respondent

have given

more than

one

preference)

Ko 40

Pc 34

Parle 36

Real 23


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Others 22

Ko

Pc

Parl

RealOth

FINDINGS

Preference in juices and soft drinks is same but 40% consumers do not compare

juices and soft drinks and they prefer both of them.

In coke drinks Coca Cola is leading, the main reason may be that Coca Cola is

having two brand names in coke section and Pepsi is having only one brand.

In case o

Major Project Summer Training

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