PROJECT REPORT

On

CAN CAFÉ CUBA SUBSTITUTE COKE?“Submitted in the Partial Fulfillment for the Requirement of Post

Graduate Diploma in Management”

By:

Name:-Harshit BehkiROLL No.:- 132

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

KALKAJI, NEW DELHI

1

DECLARATION

I, hereby declare that the project report under titled “CAN CAFÉ CUBA SUBSTITUTE

COKE: Comparative Study of Parle Agro and Coke?” submitted is a record of an

original work done by me under the guidance of Dr. Saniya Chawla, faculty member

Jagannath International Management School .

(Signature of the scholar)

Place: JIMS Harshit Behki

Date: Enrollment No. : 132

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ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I express my sincere thanks to my guide and

mentor Ms. Shiva Kaul, for his valuable guidance and confidence he installed in me, that helped

me in the successful completion of this project report. Without his help, this project would have

been distant affair. His thorough understanding of field and professional guidance is indeed of

immense help to me. I am also thankful to the faculty members of our institute who cooperated

with me and gave me their valuable time.

Place: -JIMS Date Signature of Scholar

Name: - Harshit Behki Enrollment No: - 132

3

TABLE OF CONTENTS

S.no. Topic Page.No Signature

1. INTRODUCTION

1.1 Beverage industry

1.2 Parle Agro industry

1.3 SWOT analysis

1.4 BCG Matrix of Parle Agro.

1.5 CAFÉ CUBA

1-13

14-18

19-20

21-24

25-28

2. COCA COLA

2.1 COCA Cola

2.2 SWOT Analysis of coca cola

2.3 BCG Matrix of coca cola

29-37

38

39-41

3. Objectives 42

4. Research methodology 43

5. Fact and findings 44-57

6. Recommendation 58

7. Conclusion 59

8 Bibliography 60

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EXECUTIVE SUMMARY

In this report we have done a research which indicates about the market presence of CAFÉ CUBA which is a product of Parle Agro group and the Coca Cola the most renowned company in the world.

In this report we will be using various tools and technique to find out which is the best company and what can be the future of the both the products. We would be using SWOT analysis (Strength, Weakness, Opportunities and Threats) and BCG matrix which is conducted by Boston Consultancy group.

Therefore, the objectives of my study are:

To Know whether Café Cuba can substitute Coke. To Know the preference of consumers. To Know on what parameters a consumer selects the drink.

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Chapter 1

INTRODCUTION

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1.1 Beverage industry

1940s: Industry in Transition."

Bottling Industry magazine hit the streets in 1946--at the height of the post-war American

recovery. The magazine's mission was to report on soft drink marketing and technology. The

industry has grown tremendously since then, and we've grown right along with it. Bottling

Industry changed its name to Soft Drink Industry during the late 1960s. It graduated to Beverage

Industry, with full beverage industry coverage, in the early 1970s. Name changes aside, we still

remain committed to delivering the beverage news you need to compete in the dynamic beverage

industry.

There was much to report--good and bad--during the 1940s. World War II (1940-45), the War to

End all Wars, had just ended, and America was on a full-throttle push for economic recovery.

It was a period of dramatic transition as Americans ached to put the war behind them and

celebrate peace.

Even with the recovery well underway, the soft drink industry continued to feel the effects of the

devastating war. Inconveniences were still part of the picture, as large manufacturing during the

war years was solely for the war effort. But soon more automobiles were on the road, and

products were once again making their way to store shelves.

Like other American industries, the beverage industry reflected the push for economic recovery

in a fervor of fresh thinking and entrepreneurial businesses.

7

Sugar was still under the control of the Supplies Priorities and Allocation Board and

the Office of Production Management within the Office for Emergency Management, set up

during World War II.

But veterans were given the unique incentive of a fifty-thousand-pound allocation of sugar for

opening a bottling plant. As a result, the soft drink industry saw an unprecedented surge in the

construction of plants that lasted throughout the late 1940s.

Sugar controls ended in 1947, and although meeting demand continued to be a problem, the soft

drink industry was on the road of recovery.

Other woes that plagued our industry continue to crop up to this day. Long a tax target of states

anxious to pay for constituent-friendly programs, the soft drink industry battled daily to keep

proposals at bay. In 1947 alone, eighteen legislatures considered soft drink taxes, most using

South Carolina's twenty-six-year-old tax as a model. Of the eighteen, only Pennsylvania passed a

tax--of 20 percent. It was eliminated four years later, but was cited as the cause of more than $12

million in lost sales in its first year.

"The Fabulous 1950s."

Television, with its grainy picture and rabbit ears, had a greater impact on American culture

during the 1950s than such newsmakers as the Cold War, rock ’n’ roll and the polio vaccine.

Not only did the new medium bring news and trends into American Houses faster than any other

method, its novelty had the same pull on consumers that magnets have on steel cans. It didn't

take long for savvy marketers to advertise their wares over the airwaves.

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As early as 1951, Coca-cola bottling Co. sponsored television programme including the Bob

Dixon Show and The Adventures of Kit Carson. Ocean Spray debuted its first TV commercials in

1952. And looking ahead to the next decade, Bottling Industry magazine asked its readers: "What

dress will your product wear when color television is a household commodity?"

Just as the beverage industry--as well as the rest of the country--had put the hardships of World

War II behind it, the Korean War broke out. While the soft drink industry was better prepared for

supply management the Korean War further pinched already low sugar reserves, and aluminum

supplies were depleted by 35 percent for rearmament.

On the sunny side, manufacturing was in its fresh, post-war phase, and heavy emphasis was

placed on doing more, better and faster than ever to keep up with--and in many instances create-

consumer demand.

By 1955, the soft drink industry was making a "socko" comeback after a few mediocre sales

years. Volume nationally rose between 10 and 15 percent, compared to a loss of 0.01 percent in

1954, and a 4 percent gain in 1953. Dollar volume was up $100 million, with total dollar volume

at $1.2 billion, another record.

Per capita drink consumption was approximately 163 bottles in the early part of the decade.

More than twenty-eight billion bottles of soft drinks were sold in 1954.

Schools had yet to allow soft drinks, but marketers were right there when the afternoon bell rang,

with premiums, samplings, soft drinks and advertising for school programme.

Supermarkets accounted for 53 percent of the nation's grocery business by the mid-1950s,

replacing Mom-and-Pop stores as the dominant retail outlet. Bottled soft drinks ranked as one of

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the top profit producers in food stores, giving them an approximate return of 280 percent on

inventory investment, better than five times as much as the average of all other items carried by

grocers!

"Swingin' '60s."

Soft drinks were part of the major movements of the 1960s, including civil rights, Vietnam and

flower children. It was also during the 1960s that what people did with their soft drink

containers--as well as other refuse--started to matter.

The beverage industry was at the forefront of the crusade against litter. Keep America Beautiful

Inc., a group formed by trade associations representing glass, paper and can manufacturers, and

brewers, was formed in 1963. There was a lot to pick up.

One-and-a-half billion cases of soft drinks were produced in 1963, with a retail value of $2.1

billion, according to a U.S. Bureau of Census report, issued by the U.S. Department --a gain of

41 percent over the total in the 1958 census.

In the canned soft drink field, the report listed production of 65.7 million cases for 1963--or a

10.9 percent share of the soft drink packaging market, compared to 18.6 million cases in 1958. A

further breakdown showed canned dietetic products accounting for 9 million cases.

Cans were in the spotlight as much for their growing part in the soft drink industry as for new

developments. Can openers started to fade from the scene in the mid-1960s with the introduction

of American Can's easy-open "Touch 'n Go," ring tab, all-aluminum end can.

10

American Can Co. also developed a tin-free can, manufactured completely of steel. The can was

first produced in 1966 for beer containers, with other beverages following.

Cans gained a foothold in vending during the 1960s. In 1963, cans accounted for only 3 percent

of vending sales. By 1964 it increased to 14 percent, and in 1965, it was about 22 percent.

Low-calorie soft drinks turned the corner during the 1960s, becoming a formidable and lasting

part of the category.

A survey published in Seventeen magazine indicated that low-calorie soft drinks were more

popular with the country's twelve million teenage girls than coffee, tea or fruit drinks.

"Sipping in the 70s."

With avocado and harvest gold kitchens, simulated wood paneling family/"rec" rooms,

Watergate and bell bottoms, it may be safe to say the 1970s wasn't the most tasteful of decades.

But that doesn't include soft drinks, which Soft Drink Industry magazine indicated were well on

their way to becoming America's No. 1 beverage choice.

Carbonated beverages had been No. 2 behind coffee since 1967, but were closing the gap and

would be the No. 1 beverage choice by 1977. Other top beverage picks were milk, at No. 3,

followed by beer, tea, juices, and distilled spirits.

It took awhile, but after the cyclamate ban of late 1969, the fizz returned to diet soft drinks by

1975, when sales had almost completely recovered to their 1969 peak.

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Although aspartame--at two hundred times the sweetness of sugar--was developed by G. D.

Searle during the 1970s, it was still years away from being added to soft drinks.

With cyclamates banned, saccharin remained as just about the only nonnutritive sweetener

choice. Pepsi-Cola launched Pepsi-Light, which consisted of a combination of both artificial and

nutritive sweeteners (with lemon), formulated according to FDA regulations governing

saccharin. It was sold and advertised as a "calorie reduced" soft drink rather than a "diet"

beverage. Pepsi-Light's light went out in the '80s when aspartame was approved for soft drinks.

The introduction of high fructose corn syrup (HFCS) as a sweetening agent and partial

replacement for sucrose in soft drinks was the big ingredient news of 1974. The launch of HFCS

was fortuitous, as it hit the market just as sugar prices eroded. Sugar was selling at roughly

$37.40 per hundred weight, while HFCS sold for about $20 per hundred weight.

As if the federal government didn't have enough to worry about with Watergate during the

1970s, it set out to further muddle the American psyche by heavily scrutinizing soft drink

ingredients, particularly artificial sweeteners and food colors.

Saccharin and caffeine both came under fire by the FDA, but findings proved inconclusive and

threatened bans were dropped. The use of food coloring FD&C Red No. 2 was restricted in 1971

to small doses, and only when a substitute could not be found. It was banned in 1976.

As with other segments of the marketplace, the soft drink industry was hurt by the economic

depression of the 1970s. Ingredient and production costs for soft drinks rose to an all-time high,

and U.S. per capita consumption of soft drinks dropped off for the first time in thirteen years in

1974, though only a minuscule 0.9 percent (to 31.6 gallons per capita).

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Sales of private label soft drinks peaked in 1972 but slowly drifted downward for the remainder

of the decade.

"Energetic '80s."

Among other things, the 1980s have been described as a decade of extremes. Our politics ran the

gamut from Jimmy Carter to Ronald Reagan, and the American diet could be summed up as Big

Macs washed down with Diet Coke.

There's no disputing the high drama of beverages during our last full decade, as aspartame

became the sweetener of choice and water became a hip-and-healthy packaged good.

The bottled water industry was considered the fastest growing facet of the beverage industry in

1980, with sales at $443 million in 1980, up 93 percent from 1976.

The soft drink industry continued to make modest gains throughout the 1980s. By 1980, per

capita consumption was 39.6 gallons. The industry had a total wholesale value of $17.7 billion,

on sales of more than 3.8 million cases (a 288-ounce case).

The soft drink of the decade was New Coke, Coca-Cola's attempt to stop market share erosion of

its flagship brand. The new cola had a "smoother" taste and was available in most markets by

May 1985. By August, sagging sales and consumer complaints were enough to convince the

company to bring back original Coke, now called Coca-Cola Classic.

All soft drinks--branded and private label alike--were affected by the approval of aspartame in

soft drinks.

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Aspartame was approved for soft drinks in the summer of 1983. By the end of 1984, sales of the

sweetener were already $585 million, and reached $800 million by the end of 1985.

Soft drink marketers were anxious to reformulate their diet offerings with the new sweetener.

Monsanto gave it an extra marketing edge when it began marketing aspartame under the

NutraSweet brand and created a little red swirl to identify it.

By the mid-'80s, artificial sweeteners had pushed sugar out of the limelight, lowering its share to

just under 59 percent of the sweetener market. During the early '80s, sales of high fructose corn

syrup grew annually by 33 percent, with total U.S. consumption estimated at 4 million tons.

"New Age '90s."

New age beverages accurately mirror the culture in the politically correct '90s. Not only do they

reflect a healthy lifestyle, they don't offend anyone. In addition to the healthful aspects, new age

beverages are characterized as being relatively new to the marketplace and are free of artificial

ingredients, flavors and preservatives.

Beverages fitting into the category include waters, all-natural beverages such as teas and sodas,

and juice-based sparkling waters and drinks.

Sparkling juice drinks saw the most dramatic growth at the outset of the decade, with 1990 sales

estimated at $115 million, led by Sundance Natural Juice Sparkler.

Other brands soon followed, and juice drinks--although now leaning heavily toward non-

carbonated new product entrants--still enjoy annual growth of more than 10 percent.

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Despite heavy attacks from Coca-Cola's PowerAde and Pepsi's All Sport, Quaker Oats' Gatorade

brand continues to hold about 80 percent of the sports drink market.

Today's sports drinks are being further fortified with vitamins and other antioxidants in an effort

to separate themselves from the salty, water-based isotonics of yesteryear.

Sales of good-for-you beverages grew at a 14.2 percent pace last year to become a $620 million

business.

During the last 10 years, bottled water has averaged 13.6 percent annual growth. This despite

the recall woes experienced by Perrier in 1990. The French bottled water concern controlled 80

percent of the U.S. import business in 1989. But random sampling of Perrier in early 1990 in

North Carolina turned up traces of benzene.

Perrier acted quickly, recalling its entire stock worldwide, more than 72 million bottles in the

U.S. alone. But the company has never regained its dominant position in the U.S. bottled water

market.

Other marketers tapped into Perrier's misfortunes, and bottled water has become one of the

largest beverage battle grounds of the 1990s.

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1.2 Parle Agro History

Parle Agro is an Indian private limited company that

owns several popular brands including Frooti, Appy, LMN, Hippo and Bailey.

Several Parle soda brands including Citra, Thums Up, Limca, Gold Spot and Maaza were sold

to Coca Cola in 1993 for a reported $40 million.[1][2] At the time of sale, the Parle brands together

had a 60% market share in the industry.[3] The brand was strong in South India.Citra was phased

out by 2000 to make way for Coke’s international brand, Sprite.

Parle Products was founded in 1929 in British India. It was owned by the Chauhan family of Vile

Parle, Mumbai. The Parle brand became well known in India following the success of products

such as the Parle-G biscuits and Thums Up soft drink.

The original Parle company was split into three separate companies owned by the different

factions of the original Chauhan family:

Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,

Melody, Mango Bite, Poppins, Kismi Toffee Bar, Monaco and KrackJack)

Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of

the brands such as Frooti and Appy)

Parle Bisleri, led by Ramesh Chauhan

16

Parle Agro

Parle Agro commenced operations in 1984. It started with beverages, and later diversified into

bottled water (1993), plastic packaging (1996) and confectionary (2007). Frooti, the first product

rolled out of Parle Agro in 1985, became the largest selling mango drink in India.

Separation from the parent company

The original Parle group was amicably segregated into three non-competing businesses. But a

dispute over the use of “Parle” brand arose, when Parle Agro diversified into the confectionary

business, thus becoming a competitor to Parle Products.

In February 2008, Parle Products sued Parle Agro for using the brand Parle for competing

confectionary products. Later, Parle Agro launched its confectionery products under a new

design which did not include the Parle brand name. In 2009, the Bombay High Court ruled that

Parle Agro can sell its confectionery brands under the brand name “Parle” or “Parle Confi” on

condition that it clearly specifies that its products belong to a separate company, which has no

relationship with Parle Products.

Parle Agro brands

Parle Agro Pvt. Ltd operates under three major business verticals:

Beverages – fruit drinks, nectars, juice, sparkling drinks

Water – packaged drinking water

Foods – confectionery, snacks

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Parle Agro also diversified into production of PET preforms (semi-finished bottles) in 1996. Its

customers include companies in the beverages, edible oil, confectionery and pharmaceutical

segments.

A long time ago, when the British ruled India, a small factory was set up by Mohanlal Dayal

Chauhan in the suburbs of Mumbai city, to manufacture sweets and toffees. The year was 1929

and the market was dominated by famous international brands that were imported freely. Despite

the odds and unequal competition, this company called Parle Products, survived and succeeded,

by adhering to high quality and improvising from time to time.

A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and

toffees. Having already established a reputation for quality, the Parle brand name grew in

strength with this diversification. Parle Glucose and Parle Monaco were the first brands of

biscuits to be introduced, which later went on to become leading names for great taste and

quality.

The original Parle company was split into three separate companies, owned by the different

factions of the original Chauhan family:

Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G,

Melody, Mango Bite, Poppins, Monaco and KrackJack)

Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of

the brands such as Frooti, Appy, Appy fizz, Café cuba)

All three companies continue to use the family trademark name “Parle”. The original Parle group

was amicably segregated into three non-competing businesses. But a dispute over the use of

18

“Parle” brand arose, when Parle Agro diversified into the confectionary business, thus becoming

a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro for using the

brand Parle for competing confectionary products. Later, Parle Agro launched its confectionery

products under a new design which did not include the Parle brand name In 2009, the Bombay

High Court ruled that Parle Agro can sell its confectionery brands under the brand name “Parle”

or “Parle Confi” on condition that it clearly specifies that its products belong to a separate

company, which has no relationship with Parle Products.

19

1.3 SWOT ANALYSIS

SWOT analysis is the firm should identify its internal Strengths (S) and Weeknesses (W) and

also examine external Opportunities (O) and Threats (T).

20

Strengths

Parle Brand,

Diversified product range,

Extensive distribution network.

Low and mid price range

Catering to mass,

Better understanding of consumer psyche.

Weaknesses

Dependence on retailers & grocery Stores for displaying diversified Parle Agro Products

on shelf, induce impulsive buy.

Opportunities

Estimated annual growth of 20%

Low per capita consumption,

Changing consumer preference,

Increasing demand for sugar free,

Threats

Hike in cost of production due to hike in raw material cost.

Increase distribution cost.

Local beverage product.

Entry of various new entrant.

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1.4 BCG MATRIX

The Boston consulting Group’s portfolio matrix allows a firm to visually display information

about each of its. The BCG matrix has as its axes the market growth rate (Broken into high and

low growth) and the relative market share as compared to the largest competitors (high and low

relative market share).

The BCG matrix method is based on product life cycle theory that determine the product

portfolio of a unit which contains both high growth product & low growth product having 2

Dimensions: Market share & Market growth.

22

BCG MATRIX CONSISTS OF 4 CATEGORIES:

23

1. STARS:

(High growth & High market share)

Stars are market leaders and growing fast. Stars have large

reported profits but require a lot of cash to finance the rapid

growth. As per the company’s survey, APPY FIZZ is touching the peak of success & therefore

comes under the STAR category thereby the Co. can invest a large sum for its upliftment.

2. CASH COWS

(Low growth, High market share)

A cash cow usually generates more cash than is

required to maintain its market share. It is in low-

growth market but has a dominant market share. Profits & cash generation should be high due to

its Low growth, the investment needed to be Low to keep Profits High. The products like

FROOTI.

24

3. QUESTION MARK:

(High growth, Low Market share)

It has worst cash characteristics because of High demands & Low

returns due to Low market share makes the Co. to sell off & deliver

cash.Products like CAFÉ CUBA comes under this.

4. DOGS:

(Low growth, Low market share)

The products like HIPPO CHIPS Conclude with DOGS as

they need to be divested because they are doing no good for

the Co. & have remained as an liability.

25

1.5 c ﾑｷ乇 cu 乃ﾑFast moving consumer goods major Parle Agro on re-entered the

Rs.15,000 crore-worth carbonated soft drinks (CSD) segment, 20

years after it sold brands like Thumps Up and Limca.

According to the company which manufacturers beverages like

Frooti and Appy, the new drink which is currently available in 250 ml cans priced at Rs.20 and

blends flavour of roasted coffee beans with strong carbonated fizz.

The company said that the launch will allow it to target a turnover of Rs.5,000 crore from the

current mark of Rs.2,000 crore.

The company will also expand its distribution from the current eight lakh outlets to 1.5 million.

With the launch of Café Cuba, Parle Agro set the stage for a revolution in the Indian

beverage market. This test launch gave India its first carbonated coffee soft drink. Taking this

revolution one step further, this summer Parle Agro is all set for a national launch,

accompanied by a pan-India marketing and brand communication campaign

introducing ‘The Coffee Revolution’.

The campaign aims to maximise brand awareness, resulting in increased product trial.

 The communication is edgy, premium, bold and rebellious, targeted at the experimental

mindset of the progressive Indian youth. Spend to the tune of Rs 50 crore has been invested

across a strategic mix of media vehicles that appeal to the youth.Television will play the role

of the lead medium for the campaign, followed by an aggressive focus on digital brand

building. The campaign will be supported by print, outdoor and cinema ads. Each of the

26

mediums will deliver the message of ‘The Coffee Revolution’ with the edginess of an

underground movement.

To further induce product trial and aid sampling activities, Parle Agro has introduced a

revolutionary new SKU in the form of 150 ml cans priced at Rs 15, which will strongly benefit

the brand.

Speaking on the strategy behind one of the biggest brand launches, Nadia Chauhan Kurup,

JMD & CMO, Parle Agro, said, “We are on our way to create a revolution on many levels in

the Indian beverage industry with not just a unique brand, but also with a differentiated

marketing strategy. With our new campaign, we aim to connect with evolving youth of today.”

Café Cuba has undoubtedly emerged as one of the hottest new trends in the beverage market,

as is reflected in its distribution which grew by 400 per cent from just 10,000 outlets to a

whopping 4.25 lakh outlets today.

It has revolutionised the stagnant carbonated soft drinks category by letting Indian consumers

enjoy the flavour of coffee in the form that they most love their beverages – chilled and fizzy.

That’s why 2.8 million consumers have already tasted Café Cuba in its test phase alone, a

figure that has surpassed the company’s expectations.

The integrated campaign would feature a fine showcase of work across multiple touch-points,

from a long format film to shorter ones, from sampling strategy to retail experiences. And, of

course,Print, TV, digital and social media.

Shot by renowned photographer and director Bharat Sikka in the backstreets of Cape Town,

South Africa, the TVC depicts the original story of Cafe Cuba’s underground revolution. It

27

features characters that are stylish and bold in a setting that is raw and electrifying, setting the

tone and attitude for the brand.

Since the majority of the brand’s TG is present online, the digital medium will be leveraged to

maximise TVC views and lead traffic on to the brand’s website.

The brand website, www.cafecuba.in, is unique and revolutionary, just like the brand itself,

and will also be a platform to retail brand merchandise. Ten per cent of the overall marketing

budget has been earmarked for this.

The revolution will extend further in alternate channels to increase visibility and boost

awareness.

 Modern trade promos along with introduction of multipacks will be introduced in May.

HoReCa activations will also serve as an essential avenue for promoting Café Cuba as a mixer.

Through all these endeavours, Parle Agro hopes to double the brand’s distribution strength,

and is set to make Café Cuba a Rs 1,000-crore brand within 12-14 months of its launch.

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CHAPTER-2

COCA COLA

29

COCA COLA INTERNATIONAL

2.1 HISTORY:

Coca-Cola Enterprises, established in 1986, is a young company by the standards of

the Coca-Cola system. Yet each of its franchises has a strong HI Sitage in the

traditions of Coca-Cola that is the foundation for this Company.

The Coca-Cola Company traces it’s beginning to 1886, when an Atlanta pharmacist,

Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks.

However the bottling business began in 1899 when two Chattanooga businessmen,

Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to

30

bottle and sell Coca-Cola for most of the United States from The Coca-Cola

Company.

The Coca-Cola bottling system continued to operate as independent, local

businesses until the early 1980s when bottling franchises began to consolidate. In

1986, The Coca-Cola Company merged some of its company-owned operations with

two large ownership groups that were for sale, the John T. Lupton franchises and

BCI Holding Corporation's bottling holdings , to form Coca-Cola Enterprises Inc.

The Company offered its stock to the public on November 21, 1986, at a split-

adjusted price of $5.50 a share. On an annual basis, total unit case sales were

880,000 in 1986.

In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-

Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again

helping accelerate bottler consolidation. As part of the merger, the senior

management team of Johnston assumed responsibility for managing the Company,

31

and began a dramatic, successful restructuring in 1992.Unit case sales had climbed

to 1.4 billion, and total revenues were $5 billion .

2.2 The World’s Most Powerful Brand

Interbrand’s Global Brand Scorecard for 2003 ranked Coca-Cola the #1

Brand in the World and estimated its brand value at $70.45 billion . The

ranking’s methodology determined a brand’s valuation on the basis of how

much it was likely to earn in the future, distilling the percentage of revenues

32

that could be credited to the brand, and assessing the brand’s strength to

determine the risk of future earnings forecasts. Considerations included

market leadership, stability, and global reach, incorporating its ability to

cross both geographical and cultural borders. From the beginning, Coke

understood the importance of branding and the creation of a distinct

personality.18 Its catchy, well-liked slogans19 (“It’s the real thing” (1942,

1969),“Things go better with Coke” (1963), “Coke is it” (1982), “Can’t beat

the Feeling” (1987), and a 1992 return to “Can’t beat the real thing”) 20

linked that personality to the core values of each generation and established

Coke as the authentic, relevant, and trusted refreshment of choice across

the decades and around the globe.

2.3 Indian History

India is home to one of the most ancient cultures in the world dating back

over 5000 years. At the beginning of the twenty-first century, twenty-six

different languages were spoken across India, 30% of the population knew

English, and greater than 40% were illiterate. At this time, the nation was in

the midst of great transition and the dichotomy between the old India and

the new was stark. Remnants of the caste system existed alongside the

world’s top engineering schools and growing metropolises as the historically

agricultural economy shifted into the services sector. In the process, India

had created the world’s largest middleclass, second only to China.

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A British colony since 1769 when the East India Company gained control of

all European trade in the nation, India gained its independence in 1947

under Mahatma Ghandi and his principles of non-violence and self-reliance.

In the decades that followed, self-reliance was taken to the extreme as many

Indians believed that economic independence was necessary to be truly

independent. As a result, the economy was increasingly regulated and many

sectors were restricted to the public sector.

This movement reached its peak in 1977 when the Janta party government

came to power and Coca-Cola was thrown out of the country. In 1991, the

first generation of economic reforms was introduced and liberalization

began.

2.4 Coke in India

Coca-Cola was the leading soft drink brand in India until 1977 when it left

ratHIS than reveal its formula to the government and reduce its equity stake

as required under the Foreign Exchange Regulation Act (FERA) which

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governed the operations of foreign companies in India. After a 16-year

absence, Coca-Cola returned to India in 1993, cementing its presence with a

deal that gave Coca-Cola ownership of the nation's top soft-drink brands and

bottling network.

Coke’s acquisition of local popular Indian brands including Thums Up (the

most trusted brand in India), Limca, Maaza, Citra and Gold Spot provided not

only physical manufacturing, bottling, and distribution assets but also strong

consumer preference. This combination of local and global brands enabled

Coca-Cola to exploit the benefits of global branding and global trends in

tastes while also tapping into traditional domestic markets. Leading Indian

brands joined the Company's international family of brands, including Coca-

Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In

2000, the company launched the Kinley water brand and in 2001, Shock

energy drink and the powdered concentrate Sunfill hit the market.

From 1993 to 2003, Coca-Cola invested more than US$1 billion in India,

making it one of the country’s top international investors.22 By 2003, Coca-

Cola India had won the prestigious Woodruf Cup from among 22 divisions of

the Company based on three broad parameters of volume, profitability, and

quality. Coca-Cola India achieved 39% volume growth in 2002 while the

industry grew 23% nationally and the Company reached breakeven

profitability in the region for the first time.

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Encouraged by its 2002 performance, Coca-Cola India announced plans to

double its capacity at an investment of $125 million (Rs. 750 crore) between

September 2002 and March 2003.

Coca-Cola India produced its beverages with 7,000 local employees at its

twenty-seven wholly-owned bottling operations supplemented by seventeen

franchisee-owned bottling operations and a network of twenty-nine contract-

packers to manufacture a range of products for the company. The complete

manufacturing process had a documented quality control and assurance

program including over 400 tests performed throughout the process.

The complexity of the consumer soft drink market demanded a distribution

process to support 700,000 retail outlets serviced by a fleet that includes 10-

ton trucks, open-bay three wheelers, and trademarked tricycles and

pushcarts that were used to navigate the narrow alleyways of the cities. In

addition to its own employees, Coke indirectly created employment for

125,000 Indians through its procurement, supply, and distribution networks.

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2.5 SWOT ANALYSIS

Strengths Weaknesses1. The best global brand in the world in

terms of value ($77,839 billion)2. World’s largest market share in beverage3. Strong marketing and advertising4. Most extensive beverage distribution

channel5. Customer loyalty6. Bargaining power over suppliers

1. Significant focus on carbonated drinks2. Undiversified product portfolio3. High debt level due to acquisitions4. Negative publicity5. Brand failures or many brands with

insignificant amount of revenues

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7. Corporate social responsibility

Opportunities Threats

1. Bottled water consumption growth2. Increasing demand for healthy food and

beverages3. Growing beverages consumption in

emerging markets (especially BRIC)4. Growth through acquisitions

1. Changes in consumer preferences2. Water scarcity3. Strong dollar4. Legal requirements to disclose negative

information on product labels.5. Decreasing gross profit and net profit

margins.6. Competition from PepsiCo7. Saturated carbonated drinks market

2.3 BCG MATRIX

BCG MATRIX CONSISTS OF 4 CATEGORIES:

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1. STARS:

(High growth & High market share)

39

Stars are market leaders and growing fast. Stars have large reported profits but require a lot of

cash to finance the rapid growth. As per the company’s survey, THUPS UP, MAAZA is

touching the peak of success & therefore comes under the STAR category thereby the Co. can

invest a large sum for its upliftment.

2. CASH COWS

(Low growth& High market share)

A cash cow usually generates more cash than is required to maintain its market share. It is in

low-growth market but has a dominant market share. Profits & cash generation should be high

due to its Low growth, the investment needed to be Low to keep Profits High. The products like

LIMCA AND KINLEY (WATER).

3. QUESTION MARK:

(High growth, Low Market share)

It has worst cash characteristics because of High demands & Low returns due to Low market

share makes the Co. to sell off & deliver cash. Products like FANTA, SPRITE, and MINTUE

MAID comes under this.

4. DOGS:

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(Low growth, Low market share)

The products like GEORGIA conclude with DOGS as they need to be divested because they are

doing no good for the Co. & have remained as an liability.

2.6 COMPARSION BETWEEN CAFÉ CUBA AND COKE

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SWOT ANALYSIS OF PARLE AGRO

Strengths

Parle Brand,

Diversified product range,

Extensive distribution network.

Low and mid price range

Catering to mass,

Better understanding of consumer psyche.

Weakness

Dependence on retailers & grocery Stores for displaying diversified Parle Agro Products

on shelf, induce impulsive buy.

Opportunities

`Estimated annual growth of 20%

Low per capita consumption,

Changing consumer preference,

Increasing demand for sugar free,

Threats

Hike in cost of production due to hike in raw material cost.

Increase distribution cost.

Local beverage product.

2.7 SWOT ANALYSIS OF COCA COLA

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Strength

The best global brand in the world in terms of value ($77,839 billion) World’s largest market share in beverage Strong marketing and advertising Most extensive beverage distribution channel Customer loyalty Bargaining power over suppliers Corporate social responsibility

Weakness

Significant focus on carbonated drinks Undiversified product portfolio High debt level due to acquisitions Negative publicity

Opportunity

Bottled water consumption growth Increasing demand for healthy food and beverages Growing beverages consumption in emerging markets (especially BRIC)

Threats

Changes in consumer preferences Water scarcity Strong dollar Legal requirements to disclose negative information on product labels. Decreasing gross profit and net profit margins. Competition from PepsiCo

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Chapter 3

OBJECTIVES OF STUDY

44

Chapter 4

RESEARCH METHODOLOGY

Data collection method

Primary data

45

Primary research was conducted with the help of observation method by visiting the

supermart and departmental store.

Feedback was taken from the customers in the form of questionnaires. The survey was

conducted in the following manner. The questionnaires were administered to the

respondents who came to the shops.

Secondary data

Study of the documents which included various magazines, journals, and internet.

Study of data of PARLE AGRO.

Sample Size

The survey was done by 100 people comprising mainly of teenagers and youngsters between the

ages of 18 to 30 years.

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CHAPTER 3

FINDINGS

AND

ANALYSIS

Questionnaire

1. Are you aware of Café Cuba Can? Yes No

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Awareness Level

YESNO

Findings:According to the survey it was founded that more than 50% of respondents were aware about Café Cuba Can.

2. If yes, then which source of media? Television commercial Hoardings Magazines

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Pop Word of mouth

TVC HOARDINGS MAGAZINES POP WORD OF MOUTH

0

5

10

15

20

25

30

35

40

SOURCE OF MEDIA

SOURCE OF MEDIA

FINDINGS:It was founded that TVC and POP are playing major role in the brand promotion on Café Cuba Can, followed by a strong word of mouth and hoardings and magazine.

3. What is your age? 15-20 20-25 25-30 30 Above

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AGE GROUP

15-2020-2525-3030 ABOVE

FINDINGS:It was observed that the drink is for youth so the main target audienceWas between the age of 20-25 followed by 15-20.

4. Which aspect of Café Cuba Can attracts you more? New concept Packaging Flavor TV commercial

50

NEW CONCEPT PACKAGING FLAVOR TVC0

5

10

15

20

25

30

35

40

45

ASPECT

ASPECT

FINDINGS:According to the survey people were liking the all new concept of this drink as it is first coffee carbonated drink and packaging is also acting as major factor attraction as it is available in 150 ML can (₹15) and 250 ML Can (₹20).

5. Where do you generally buy your products from? General store Convenience store Kirana shop Malls

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60%15%

20%

5%

OPTION

GENERAL STORECONVENIENCE STOREKIRANA SHOPMALLS

Findings:

It was observed that 60% of the respondents was youth and they prefer

General store to buy products as compared to kirana shop, convenience

Store and Malls.

6. How health conscious are you? Extremely Very Somewhat Not at all

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EXTREMELY VERY SOMWHAT NOT AT ALL0

10

20

30

40

50

60

70

80

HEALTH CONCIOUS

HEALTH CONCIOUS

FINDINGS:As per the survey 75% of the respondent was found to be extremely health conscious and Café Cuba Can proves to be a healthy drink as it comes from very renowned brand Parle Agro.

7. Why do you drink soft drink? Flavour Caffeine Refreshment Brand loyalty

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FLAVOUR CAFFEINE REFRESHMENT BRAND LOYALTY0

5

10

15

20

25

30

35

40

OPTION

OPTION

FINDINGS:As per the survey people usually drink any soft drink because of its flavour and it was also observed that a large number of respondent drinks due to its refreshing part and many people was found to be brand loyal.

8. Can Café Cuba act as a substitute of Cola? Yes No

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OPTION

YESNO

FINDINGS:It was observed that more than 50% of the respondent thinks thatCafé Cuba cannot substitute coke. Because as per consumer it’s a different concept as compared to coke and it’s a very early stage as well.

9. If no, then what makes you to drink coke? Brand ambassador Brand loyalty Value for money

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Flavour

Brand ambassador Brand loyalty Value for money Flavour0

5

10

15

20

25

30

35

40

OPTION

OPTION

FINDINGS:According to the survey Value for money was the main factor that makes people to drink coke, since it’s a well-established brand as compared to Café Cuba so people are well aware of its flavour also.

10.How often do you consume coke? Daily Weekly basis Monthly

56

Never

DAILY WEEKLY MONTHLY NEVER0

5

10

15

20

25

30

35

40

45

OPTION

FINDINGS:It was observed that summer season is going on and therefore a large number of respondents was there who drinks coke on weekly basis followed by daily basis.

11.How satisfied are you with coke? Very satisfied Satisfied Neutral

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Unsatisfied

SATISFACTION

VESY SATISFIEDSATISFIEDNEUTRALUNSATISFIED

FINIDNGS:As per the survey more than 50% of the respondents were very satisfied with coke.

12.Rate Café Cuba in terms of the following features on a scale of 1 to 5.Rating of 1 represents that the Café Cuba is poor in providing this attribute. Rating of 5 represents that the Café Cuba is very good in providing this attribute?

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1 2 3 4 5

Availability

Brand Promotion

Concept

Pricing (only cans)

Flavor

Innovative

OPTION

AVAILABILTYBRAND PROMOTIONCONCEPTPRICINGFLAVOURINNOVATIVE

FINDINGS:According to survey a large number of respondents rated 5 in concept as it is a new concept followed by its innovative technique.

13.Rate Coke in terms of the following features on a scale of 1 to5.Rating of 1 represents that Coke is poor in providing this attribute. Rating of 5 represents that Coke is very good in providing this attribute?

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1 2 3 4 5

Availability

Brand promotion

Concept

Pricing (only cans)

Flavor

Innovative

OPTION

AVAILABILTYBRAND PROMOTIONCONCEPTPRICINGFLAVOURINNOVATIVE

FINDINGS:As per the survey respondent rated coke as 5 in terms of availability.Since its an well-established brand so its flavour is also well known to consumers and pricing is also very competitive.

Conclusion

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It is clear form the above report that the after the establishment of Parle Agro in the Indian

market , it become a great threat for most of the domestic competitor and also for MAAZA and

SLICE. As of now consumers are satisfied with the product line and also with the distribution of

Parle Agro. In comparison toCoca Cola, Parle Agro has less number of products in the Indian

market but due its brand name, re-formalized strategies as per the Indian market and strong

promotional measures it is rapidly capturing growth and market share in the Indian market.

As far as Café Cuba is concerned it will also capture the market as it is fresh concept and it has

no competitor in the market now. And pricing is also very competitive. And a large customer

base who are very fond of coffee.

Thus we can say that it is in the interest of the company to use attractive promotional measures to

get a competitive advantage over its competitors.

Therefore, we can conclude from the above discussion that Café cuba has a greater scope of

expansion and opportunity to increase its market share in the Indian market.

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Limitation

No project is without limitations and it becomes essential to figure out the various constraints thatwe underwent during the study.

The following points in this direction would add to our total deliberations:-

1. During the study, on many occasions the respondent groups gave us a cold shoulder.

2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/whole sellers refuse to cooperate with the queries.

5. Some retailers/wholesalers gave biased or incomplete information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience due to short period of time.

8. Some retailers did not answer all the questions or do not have time to answer.

Recommendation

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Parle Agro should focus more to establish Café Cuba in Indian market According to the survey, conducted by the international firm Indians like little bit sweeter

cola drink. Parle Agro should try to emphasis more on providing their infrastructure in the market to

facilitate their customers.

Marketing team should try to increase the availability of Café Cuba in rural areas.

Parle Agro should try to emphasis more on packing of the can.

Bibliography

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www.parleagro.com

www.slideshare.com

www.scibd.com

Wikipedia

Newspaper and magazines

Books and journals

www.cocacola.com

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