Cocacola Final

Embed Size (px)

Citation preview

  • 7/28/2019 Cocacola Final

    1/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 1

    CHAPTERI

    1.1 INTRODUCTION :

    The soft-drink battleground has now turned towards new overseas markets.

    While once the United States, Australia, Japan, and Western Europe were the

    dominant soft-drink markets, the growth has slowed down dramatically, but they

    are still important markets for Coca-Cola and Pepsi. However, Eastern Europe,

    Mexico, China, Saudi Arabia, and India have become the new "hot spots." Both

    Coca-Cola and Pepsi are forming joint bottling ventures in these nations and in

    other areas where they see growth potential.

    International marketing can be very complex. Many issues have to be

    resolved before a company can even consider entering uncharted foreign waters.

    This becomes very evident as one begins to study the international cola wars. The

    domestic cola war between Coca-Cola and Pepsi is still raging. However, the two

    soft-drink giants also recognize opportunities for growth in both Coca-Cola,

    which sold 10 billion cases of soft-drinks in 1992, and Pepsi now find themselves

    asking, "Where will sales of the next 10 billion cases come from?" The answer

    lies in the developing world, where income levels and appetites for western

    products are at an all time high.

    Often, the company that gets into a foreign market first usually dominatesthat country's market. Coca-Cola patriarch Robert Woodruff realized these 50

    years ago and unleashed a brilliant ploy to make Coca-Cola the early bird in

    many of the major foreign markets. At the height of World War II, Woodruff

    proclaimed that wherever American boys were fighting, they'd be able to get a

  • 7/28/2019 Cocacola Final

    2/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 2

    Coca-Cola. By the time Pepsi tried to make its first international pitch in the 50s,

    Coca-Cola had already established its brand name and a powerful distribution

    network. In the intervening 40 years, many new markets have emerged. In order

    to profit from these markets, both Coca-Cola and Pepsi need to find ways to cut

    through all of the red tape that initially prevents them from conducting business

    in these markets. This paper seeks to examine these markets and the opportunities

    and roadblocks that lie within each.

    Both these companies Coca-Cola and Pepsi are of great caliber. In fact, they

    are the companies that are ruling the market. Coca-Cola and Pepsi have always

    competed against each other for a bigger market share. They have come up with a

    variety of campaigns to get a one-up over each other. They have gone in for blind

    taste test to advertising campaigns to even garnering customer support through

    brand ambassadors.

    But these companies have faced different difficulties in different parts of the

    world. But they have overcome these difficulties and have managed to reach top

    positions. The difficulties have included political campaigns against them. They

    include the local competitors in a country against them. This also includes the

    culture of the country which decides things like the peoples tastes and

    preferences. They have overcome all these difficulties to sell their products in the

    markets.

  • 7/28/2019 Cocacola Final

    3/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 3

    1.2 OBJECTIVES OF THE STUDY :

    The objectives of the study are as follows : To study the historical background of COCA-COLA INDIA LIMITED. To study the competitive environment. To determine critical evaluation of the market. To study the effectiveness of the market in todays world. To analyze the functions, procedures in the market share analysis. To suggest some strategies, remedies in various aspects of improving

    market share.

    To equip myself better in the area of market share analysis.

  • 7/28/2019 Cocacola Final

    4/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 4

    1.3 SCOPE OF THE STUDY :

    The scope of the study is restricted to the consumers attitudes and

    behavior, likes and response towards coco-cola in Hagaribommanahalli city.

    This report includes the efforts that have been made by coco-cola

    Company, and Malatesh Marketing service, Hagaribommanahalli, to improve

    the quality and push up the sales of coco-cola products in Hagaribommanahalli

    city, and the survey includes the past purchases, few prospective consumers of

    product and their satisfaction towards the coco-cola products.

    This proportion of consumers in selecting up particular of soft drinking has

    dragged me to study the features of consumers satisfaction regarding the coco-

    cola company soft drinks.

    1.4 METHODOLOGY :

    Research Methodology is a way to systematically solve the research

    problem. It may be understood as a science of studying how research is done

    scientifically. In Research Methodology we study various steps that are generally

    adopted by a researcher in studying this research problem along with the logic

    behind them. It is necessary for the researcher to know not only the research

    methods/techniques but also the methodology. Researchers need to understand

    the assumptions underlying various techniques and they need to know the criteria

    by which they can decide certain techniques and procedures applicable to certain

    problems. This means that it is necessary for the researcher to design his

    methodology for his problem as the same may differ from problem to problem.

  • 7/28/2019 Cocacola Final

    5/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 5

    Research Methodology has many dimensions and research methods do

    constitute a part of the research methodology. The scope of Research

    Methodology is wider than that of research methods. Thus, when we talk of

    research methodology we not only talk of the research methods but also consider

    the logic behind the methods we use in the context of our research study and

    explain why we use particular method or technique so that research results are

    capable of being evaluated either by researcher himself or by herself.

    #Sources of Data

    Important criteria for the validity of any research study in a methodical way :

    In research to get meaningful information, data collected should be accurate and

    reliable. There are 2 sources of data collection

    1. Primary Data and2. Secondary Data.

    The Primary Data was collected from having discussions with marketing officers

    and various retailers. It was also collected details from consumers through survey

    method by using the technique of questionnaire.

    The Secondary Data for this study has been collected by referring to various

    records of coca-cola India Ltd., it was also collected from some important

    journals magazines, text book and websites.

  • 7/28/2019 Cocacola Final

    6/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 6

    1.5 LIMITATIONS OF THE STUDY :

    Time restriction. The information, which was needed, could not be made public by the

    organization.

    Discussion with all related officials was not possible. The study covered a vast concept hence wide collection and coverage

    of information was not easily possible.

    Duration for the study was another limiting factor as the report was tobe completed in 6 weeks time

  • 7/28/2019 Cocacola Final

    7/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 7

    CHAPTERII

    2.1 MEANING :

    The first concept to be understood in marketing management is Market.

    The term Market is derived from the Latin work Maratus. This means

    merchandise, wares, traffic, trade or place of business. This term has been

    defined by many in many ways. But its central theme is that it is an activity

    which centers round two important operations viz,. BUYING and SELLING.

    Simply, it means an Exchange Activity.

    2.2 DEFINITION :

    According to Chapman, the marketing can be defined as, Market is a

    group of sellers and buyers who are willing to exchange goods and or services for

    something of value. Of course, some negotiation may be needed. This can be

    made face to face at some physical location. Or it can be done indirectly through

    a complex network of middlemen who link buyers and sellers who are far apart.

    ChapmanAccording to Mitchell, the market can be defined as, Originally, a market

    was a public place in a town where provisions and other objects were exposed for

    sale, but the work has been generalized to mean any body of persons who are

    having intimate business relations and carry on extensive transactions in any

    commodity.

    Mitchell

  • 7/28/2019 Cocacola Final

    8/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 8

    2.3 IMPORTANCE OF MARKETING :

    Marketing plays an important role in the success of a business enterprises,

    Marketing is primarily concerned with movement of goods and services from the

    producer to the consumers in order to satisfy their needs. Marketing contributes

    directly to keep the wheels of the organization moving on the path to progress

    and prosperity.

    The importance of marketing is explained as follows :

    Marketing helps in the realization of the objectives for which theorganization has been set up. In fact, effective marketing is essential for the

    survival and growth of the organization.

    It helps the community to satisfy their economic and social needs and thusraise their standard of living. It ensures better deal and services for the

    consumers. It helps the enterprise to fulfill its social responsibilities.

    It helps in producing those products that are needed by the consumers andcommunity at large. It activates the production consumption chain. Thus, it

    helps in an efficient and productive utilization of resources, both human

    and materials, eliminating wastages.

    It helps the enterprise to adapt to the changing conditions andcircumstances.

  • 7/28/2019 Cocacola Final

    9/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 9

    It provides guidance to the organization on the innovations to be adopted,enabling it to face competition more squarely.

    It helps the enterprise in achieving the maximum efficiency, productivityand profitability with the minimum of effort and cost.

    It ensures the economic growth of the enterprises which results in growthand economic development of the county.

    2.4 NATURE AND SCOPE OF MARKETING :

    The following are the Nature and Scope of the Marketing are as follows :

    1. Marketing is consumer oriented process : A business exists to satisfyhuman needs. Therefore, it is essential that the organization must first find

    out the customers needs. Only such goods should be produced which best

    satisfy consumer needs. In the words of Levett, instead of trying to market

    what is easiest for us to make, we must find out much more about what the

    consumer is willing to buy.

    2. Market starts and ends with the customer : Marketing starts even beforeproduction starts. Under consumer oriented marketing, it is essential to

    understand what customers really want. Understanding of customer wants

    is possible only when the information is collected from the customers

    regarding their tastes, fashion, buying habit etc. therefore, establishment of

    proper information system is essential for the success of the marketing

  • 7/28/2019 Cocacola Final

    10/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 10

    function. Marketing research helps the organization to understand

    customer wants. Reliable information helps the organization to produce

    right type of goods that are needed by the consumer. This helps in

    satisfying both the customers and the organization.

    3. Marketing is the guiding element of business : In the past marketing wasconsidered as a function concerned with getting goods and services into the

    hands of considered as a function concerned with getting goods and

    services into the hands of customers. Today marketing is much more than

    this. Modern marketing is a function directed towards economic

    development of the country and in raising the standard of living of the

    people. Modern marketing involves the integration of various activities

    involved in marketing process. The responsibility of modern marketing is

    to reach customers at a maximum speed with minimum cost.

    4. Marketing is a system : Marketing has been viewed as an ongoing ordynamic process involving a set of interacting and interrelated activities to

    reach customer. It receives inputs from the environment in the form of

    valuable information. Using these valuable information, organization

    supply the desired products and services to satisfy customer needs and

    thereby earns profit.

    5. Marketing is a goal oriented process : Marketing seeks to achieve someuseful goals like any other business activity. The very basic aim of

  • 7/28/2019 Cocacola Final

    11/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 11

    marketing is to generate considerable amount of profit through customer

    satisfaction. Increase in volume of sales, increase in profit and increase in

    growth are the three objectives of marketing. While attaining these

    objectives, organizations should assume social responsibilities to a greater

    extent.

    6. Marketing is a process of exchange : Marketing essentially a process ofexchange. Goods and services are exchanged between the buyers and the

    sellers. Goods and services are handed over to the buyers by the

    organizations and the customers in turn gives money to the organization.

    One more important exchange observed in marketing is information.

    Marketing information is exchanged between the buyers and the sellers.

    Information is power. Information is the foundation on which the

    organization success depends.

    7. Marketing is a process : Marketing involves various functions to beperformed in an order. Various activities should be properly related. Thisprocess should be flexible. Any changes in social and environmental

    factors influence the marketing process. Therefore, marketing management

    should have a watch on these changes, the process should be improved to

    suit these changes.

  • 7/28/2019 Cocacola Final

    12/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 12

    2.5 ROLE OF MARKETING IN ECONOMIC DEVELOPMENT

    Marketing and trade play vital roles in the economic growth and overall

    development of a nation. The major roles or marketing and trade in the national

    economy can be thought of in terms of :

    Specialization in Activities of Comparative Advantage :Without market facilities, areas must maintain diversified activities to produce

    their own food, shelter, tools and other needs goods. In the presence of a market,

    however an individual can specialize in one activity and sell the surplus in order

    to purchase other needed goods. The individual is likely to specialize on the basis

    of a comparative advantage in that activity for which he or she has some special

    resource or ability. A comparative advantage exists when an individual or region

    can produce a good, relative to the price of other goods, more cheaply than

    another individual or region. In livestock production, comparative advantage is

    often the result of agro ecological conditions particular to a region making it

    suited to certain specialized activities.

    Specialized activities lead to trade. The gains from trade will be the value

    of additional production made possible through specialization and trade. The

    exact gains from trade will depend on the market prices of the goods with and

    without trade. This concept applies equally to individuals, who use their

    comparative advantage to specialize in one task, selling their products to trade for

    the other goods they need.

  • 7/28/2019 Cocacola Final

    13/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 13

    Enhanced Resource use Efficiency and Trade :Through specialization and trade, a community is better able to utilize its

    limited resources. Specialization and the resulting efficiency of resource use is

    the basis for economic growth and development. As markets and economies

    develop, surpluses occur more frequently in profitable activities, creation new

    wealth, while products are moved greater distances than before. Thus, trade is a

    necessary ingredient for economic growth. Marketing is simply the means by

    which trade occurs.

    Advances in Marketing with Economic Growth :As economic growth proceeds, several changes in marketing take place, with

    economic development, the activities and tasks of marketing increase. Activities

    such as storage and processing, packaging and retail distribution become more

    important. Greater activity moves away form the site of production and towards

    marketing. This, in turn, creates employment opportunities and further

    specialization. Since livestock products typically have positive income elasticity

    of demand, economic growth can lead directly to new opportunities for

    production.

    With development, more economic agents may enter trade, helping to improve

    marketing services and in some cases, allowing the market to capture external

    economies of scale.This refers to a situation where the presence of many agents

    allows each one to operate at a lower cost. An example is the case where

    increased trade in some commodity , which lowers per unit storage costs. The

    physical infrastructure can also be affected in a positive way by large markets, in

    the form of better roads and communication, offering the potential for external

    economies of scale.

  • 7/28/2019 Cocacola Final

    14/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 14

    2.6 BENEFITS TO THE SOCIETY :

    The market provide many benefits to the society, some of are as follows :

    1. Delivery of Standard of Living : Market is of critical social importance,because it has been given the responsibility and task of creating, raising

    and maintaining the standard of living of the society. This is the special

    demand of the people. Only customer oriented business enterprise can

    succeed in discharging this responsibility.

    2. Employment and Income : Marketing is essential for providingincreasing employment opportunities so that we can have effective demand

    in the market. Continuous production is governed by continuous

    marketing. Marketing offers employment and income to about 30 to 40 per

    cent of the total population. It assumes special importance in India as a

    major source of livelihood or gainful employment.

    3. Equilibrium between Supply and Demand : Marketing system canassure equilibrium between supply and demand through the process of

    equalization and thereby we can have price stability as well as economic

    stability. If we have balance between production and distribution, there

    will be no danger of boom and slump in our economy. If supply exceeds

    demand, there will be depression. If demand exceeds supply, there will be

    inflation and rising prices. Marketers can indicate the precise market

    demand to the production managers. In essence, marketers are managers of

  • 7/28/2019 Cocacola Final

    15/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 15

    demand. Of course, in practice, supply is adjusted with changing demand

    as consumer demand is not directly controlled by marketers.

    4.

    Creation of Utilities : Marketing as an economic activity create time,place and possession utilities. Merchandising creates form utility.

    Exchange create ownership and possession utilities. Transport creates

    place utility. Storage creates time utility. Promotional activities create

    information utility. Hence, marketing activities create or add value through

    form, Place, time, ownership, possession and information utilities.

    5. Economic Development : Marketing development can initiate integrationof and agriculture industry, can bring about maximum utilization of present

    productive capacity and can develop entrepreneur and managerial talents

    particularly in underdeveloped countries. Thus marketing can bring about

    rapid development in underdeveloped or developing countries.

  • 7/28/2019 Cocacola Final

    16/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 16

    CHAPTERIII

    3.1 INDUSTRY PROFILE :

    The global market consists of two major players; PEPSI and COCO-

    COLA. Both have universal brand names. They are available in almost 200

    countries Coco-cola products are served in more than 160 countries, with the

    emerging middleclass and higher purchasing power the expenditure on soft

    drinks is bound to increase considerably; this is possible only through intense

    marketing, which has led to cut-throat competition and the famous cola wars.

    Asian youth are among the worlds fastest growing consumer segment

    today. China, Indonesia and India make up three of the worlds 4 biggest soft

    drink markets. The fortune 500 majors have duly acknowledged the potential

    and consumption of beverages, in India, in particular.

    The study growth and increasing sales show a highly rewarding future for

    the soft drinks business in India. Not only have the sales increased but the bottle

    sizes have also increased from 250 ml to 300 ml. of the total volume, almost 50%

    is contributed by the colas alone, which are the most widely consumed and

    promoted drinks internationally. In the cola category, Coco-cola is seen as the

    most aggressive of the lot, followed by Thumps Up from the COCO-COLA

    portfolio and thirdly COCO-COLA, itself.

  • 7/28/2019 Cocacola Final

    17/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 17

    Other highlights of the Indian soft drink Industrial market are as under:India is a young country with 20.4% of its population lying in the age

    group of 15-24 years, which is where the potential for soft drinks lie.

    While the per capita consumption of soft drinks in the United States is

    about 770 servings and 62 servings outside the United States, the per capita

    consumption in India is a ridiculously low figure of 3 servings per year, which is

    lower than the average consumption in Pakistan and Bangladesh.

    For a population of over 1200 million, India has only 3.15 lakh retailers

    who stock soft drinks whereas a country like Philippines, with a population 60

    million, has 4.5 lakh retail outlets.

    It takes an Indian 1.5 hour of work to be able to buy a soft drink while in

    other developed countries it takes only 5 minutes.

    In India consumers pay at least 13 times more than an American for acarbonated soft drink. Soft drink sales have great seasonal fluctuations in India

    with sales peaking in summers and plummeting in the other seasons. However,

    soft drink giants are aggressively aiming to make it an anytime drink.

    Even today, consumption of soft drinks in India is mostly restricted to

    special occasions. Consumption of soft drinks is still considered a luxury in

    India.

    The soft drinks industry in India faces many challenges. The soft drinks

    bottling operation is a capital intensive business, with investment at four levels

    i.e. cost of plant and equipment, investment in bottles and crates, transportation

  • 7/28/2019 Cocacola Final

    18/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 18

    and cooling structure at retail outlets? In India, the soft drink industry is

    suffering greatly due to lack of capacity and infrastructure. Additionally, most of

    the retailers sell a drink for anywhere for Rs.12, thus making it expensive for the

    customers, as compared to their purchasing power. Most of the people in India

    are below the poverty line.

    But the soft drink market in India has been undergoing tremendous

    changes since the liberalization of the economy. The industry is growing at a rate

    of 20% per annum. The arrival of the big giants has caused a phenomenal change

    in the industry. The face of the soft drink industry is expected to thoroughly

    change in the coming years.

    3.2 HISTORY OF SOFT DRINKS :

    Soft drinks can trace their history back to the mineral water found in

    natural springs. Bathing in natural springs has long been considered a healthy

    thing to do and mineral water was said to have curative powers. Scientists soon

    discovered that gas carbonium or carbon dioxide was behind the bubbles in

    natural mineral water. The first marketed soft drinks (non-carbonated) appeared

    in the 17th century, they were made from water and lemon juice sweetened with

    honey. In 1676, the Compagnie de Limonadiers of Paris were granted a

    monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of

    lemonade on their backs and dispensed cups of drink to thirsty Parisians.

    In 1767, the first drinkable man-made glass of carbonated water was

    created by Englishmen Doctor Joseph Priestley. Three years later, Swedish

    chemist Torbern Bergman invented a generating apparatus that made carbonated

  • 7/28/2019 Cocacola Final

    19/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 19

    water from chalk by sulphuric acid. Bergman's apparatus allowed imitation

    mineral water to be produced in large quantities.

    In 1810, the first United States patent was issued for the "means of mass

    manufacture of imitation mineral waters" to Simons and Rundell of Charleston,

    South Carolina. However, carbonated beverages did not achieve great popularity

    in America until 1832; First, John Mathews invented his apparatus for making

    carbonated water, and then he mass-manufactured his apparatus for sale which

    gained great popularity.

  • 7/28/2019 Cocacola Final

    20/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 20

    Time line of soft drinks industry :1798: The term "soda water" first coined.

    1810: First U.S. patent issued for the manufacture of imitation mineral waters.

    1819: The "soda fountain" patented by Samuel Fahnestock.

    1835: The first bottled soda water in the U.S.

    1850: A manual hand & foot operated filling & corking device, first used for

    bottling soda water.

    1874: The first ice-cream soda sold.

    1876: Root beer mass produced for public sale.

    1881: The first cola-flavored beverage introduced.

    1885: Charles Aderton invented "Dr Pepper" in Waco, Texas.

    1886: Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

    1892: William Painter invented the crown bottle cap.

    1898: "Pepsi-Cola" was invented by Caleb Bradham.

    1899: The first patent issued for a glass blowing machine, used to produce glass

    bottles.

    1913: Gas motored trucks replaced horse drawn carriages as delivery vehicles.

    1919: The American Bottlers of Carbonated Beverages formed.

    1920: The U.S. Census reported that more than 5,000 bottlers now exist. Early

    1920's the first automatic vending machines dispensed sodas into cups.

  • 7/28/2019 Cocacola Final

    21/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 21

    1923: Six-pack soft drink cartons called "Hom-Paks" created.

    1929: The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-

    Lime Sodas" later called "7 Up". Invented by Charles Leiper Grigg.

    1934: Applied color labels first used on soft drink bottles, the coloring was baked

    on the face of the bottle.

    1952: The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold

    by Kirsch.

    1957: The first aluminum cans used.

    1959: The first diet cola sold.

    1962: The pull-ring tab first marketed by the Pittsburgh Brewing Company of

    Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

    1968: The Schlitz Brewing Company introduced the "Pop Top" beer can to the

    nation in March, invented by Ennal Fraze of Kettering, Ohio.

    1972: Soft drinks in cans dispensed from vending machines.

    1975: The resalable top invented.

    1976: The American Bottlers of Carbonated Beverages renamed The National

    Soft Drink Association.

    1982: Plastic bottles are used for soft drinks.

    1983: The PET (Polyethylene Terephthalate) bottle created.

    1989: The stay-on tab invented. Introduced by the Falls City Brewing Company

    of Louisville, KY.

  • 7/28/2019 Cocacola Final

    22/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 22

    1994: Mello Yello soft drink is introduced by the Coca-Cola Company as

    competition against Mountain Dew.

    2007: The "talking" vending machine invented.

    2009: Nearly 2009, PepsiCo announced plans to release versions of Pepsi and

    Mountain Dew with pure cane sugar as its main sweetener, and without the citric

    acid found in regular Pepsi, on a limited time basis. The original shipment went

    on sale in April 2009, and ended in June. Sales were strong for both, prompting

    PepsiCo to release a 2nd limited batch for December 2009February 2010.

    The second batch version of Mountain Dew Throwback from December

    2009 differed slightly in its formula from the first batch from April 2009, in that

    it now included concentrated orange juice as one of its ingredients, giving it a

    slightly different flavor more in common with Mountain Dew presently available.

    2010 : A third batch was released on July 31, 2010, again as a five week limited

    release. On October 12, Consumerist.com reported that Pepsi has decided to

    continue offering the Throwback line as long as people continue to buy it.

    A fourth batch started to appear in stores in late December 2010, removing

    the limited time only logo from the case packaging. At the same time, Sierra

    Mist, a drink that debuted in 1999 and had always been made with high fructose

    corn syrup, also had a sugar-based formula released under the name "Sierra Mist

    Natural." Sierra Mist Natural has since replaced the HFCS-based Sierra Mist as

    the primary Sierra Mist formula.

    2011 : In January 2011, Pepsi Throwback began appearing in 12 pack 355ml

    cans as well as 591mL bottles across Canada

    http://en.wikipedia.org/wiki/Citric_acidhttp://en.wikipedia.org/wiki/Citric_acidhttp://en.wikipedia.org/wiki/Sierra_Misthttp://en.wikipedia.org/wiki/Sierra_Misthttp://en.wikipedia.org/wiki/Sierra_Misthttp://en.wikipedia.org/wiki/Sierra_Misthttp://en.wikipedia.org/wiki/Citric_acidhttp://en.wikipedia.org/wiki/Citric_acid
  • 7/28/2019 Cocacola Final

    23/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 23

    4 COMPANY PROFILE :

    Columbus, Georgia druggist John Stith Pemberton

    invented a cocawine called Pemberton's French Wine Coca in

    1885, although it was originally meant to be a headache

    medicine.

    The same year, when Atlanta and Fulton County passed prohibition

    legislation, Pemberton began to develop a non-alcoholic version of the French

    Wine Coca. His book keeper (and later lead Marketer), Frank Robinson, coined

    the name Coca-Cola, because it included the stimulant cocaine and was flavoredusing kola nuts, a source of caffeine. Pemberton called for 5 ounces (140 grams)

    of coca leaf per gallon of syrup. The first sales were made at Jacob's Pharmacy in

    Atlanta, Georgia, on May 7th, 1886, and for the first eight months only an

    average of nine drinks were sold each day. Pemberton ran the first advertisement

    for the beverage on May 29th that year in the Atlanta Journal.

    Coca-Cola was initially sold as a patent medicine for five cents a glass.Pemberton claimed Coca-Cola cured myriad diseases, including morphine

    addiction, dyspepsia, neurasthenia, headache, and impotence.

    In 1887, Pemberton sold a stake in his company to Asa Griggs Candler, who

    incorporated it as the Coca Cola Corporation in 1888. In the same year,

    Pemberton sold the rights a second time to three more businessmen: J.C.

    Mayfield, A.O. Murphey, and E.H. Bloodworth.

    Meanwhile, Pemberton's son Charley Pemberton began selling his own version

    of the product. Three versions of Coca-Cola sold by three separate businesses

    were in the market.

  • 7/28/2019 Cocacola Final

    24/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 24

    Under Candler and Woodruff :

    In an attempt to clarify the situation, John Pemberton declared that thename 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 the late 1888, in order

    to force his two competitors out of business. Candler apparently purchased

    exclusive rights to the formula from John Pemberton, Margaret Dozier, and

    Woolfolk Walker. However, in 1914, Dozier came forward to claim her signature

    on the bill of sale had been forged, and subsequent analysis has indicated John

    Pemberton's signature was most likely a forgery as well.

    In 1892, Candler incorporated a second company, The Coca-Cola

    Company the current corporation. In 1910, Candler had the earliest records of

    the company burned, further obscuring its legal origins. Regardless, Candler

    began aggressively marketing the product the efficiency of this concerted

    advertising campaign would not be realized until much later. Candler pioneered

    several promotional techniques, such as the distribution of vouchers for free

    glasses of Coca-Cola, and advertising through media, varying from soda fountain

    urns to wall murals.

    Coca-Cola was sold in bottles for the first time on March 12 th, 1894. 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 of six-ounce (170-gram) Hutchinson bottles manufactured by

    Biedenharn and sealed with a rubber gasket. Reportedly leaky, they were soon

  • 7/28/2019 Cocacola Final

    25/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 25

    replaced with "crown top" bottles with straight sides, and sealed with a metal cap;

    variants of this design remain in use today. The distinctive "hobble-skirt" bottle

    design now associated with Coca-Cola was introduced in 1915.

    Initially, Candler was tentative about bottling the drink, but the two

    entrepreneurs who proposed the idea were so persuasive that Candler signed a

    contract giving them control of the procedure. However, the loosely termed

    contract proved to be problematic for the company for decades to come. Legal

    matters were not helped by the decision of the bottlers to subcontract to other

    companies in effect, becoming parent bottlers. This meant that Coca-Cola was

    originally sold in a wide variety of bottles, until the introduction of the iconic,

    standardized "hobble-skirt" bottle in 1916.

    After the advent of bottling, the company began taking advertising even

    more seriously than it had before, hiring William D'Arcy, whose creations set the

    tone for Coca-Cola advertising that his successors would follow. D'Arcy

    associated Coca-Cola with typical everyday scenes of people going about their

    daily business; his personal view was that "Coca-Cola advertising should create

    scenes that drew people in and made them part of the pleasant interludes of

    everyday life". Instead of targeting particular population segments, D'Arcy

    attempted to appeal to as broad a class of people as possible, with advertising

    copy such as "all classes, ages and sexes drink Coca-Cola".

  • 7/28/2019 Cocacola Final

    26/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 26

    After Candler, the next executive to

    have a major impact on Coca-Cola's future

    was Robert Woodruff, who focused on

    expanding the scope of the business to the

    rest of the US. A noted workaholic,

    Woodruff continued to have a major

    influence on the business long after his

    retirement until his death in the 1980s.

    Woodruff inherited leadership of the

    company from his father, Ernest Woodruff, who had successfully led a campaign

    to takeover the company from Candler in 1919. Woodruff became President of

    the Coca-Cola Company four years later. Emphasizing quality in the production

    of Coca-Cola, he initiated a "Quality Drink" campaign aimed at properly training

    those who served Coca-Cola at soda fountain outlets. Woodruff was also

    influential in establishing quality standards for the bottled version of Coca-Cola,

    which he thought had great potential. Looking beyond the United States, he set

    up a foreign department of the company in 1926, and began opening

    manufacturing plants in various European and Central American countries. It was

    Woodruff who assumed responsibility for designing Coca-Cola's foreign

    advertising campaigns, affixing the company logo to racing dog sleds in Canada

    and Spanish bullfighting arenas. He also introduced some new forms of

    distributing Coca-Cola, such as the six-pack carton, which made bulk purchases

    of Coca-Cola substantially easier.

  • 7/28/2019 Cocacola Final

    27/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 27

    In 1929, the onset of the Great Depression led to fears that sales might be

    depressed for the year. However, an advertising campaign spearheaded with the

    slogan "the pause that refreshes" led per capita consumption of Coca-Cola to

    actually double. That same year, sales of bottled Coca-Cola overtook those of

    Coca-Cola sold at soda fountains for the first time. Throughout the Great

    Depression, Coca-Cola advertising continued to be upbeat, despite the bleak

    economic outlook; a 1935 advertisement depicted a man nonchalantly smiling on

    his way to work, presenting an idealised view of American life at the time. The

    proliferation of Coca-Cola and a newcomer to the soft drink market, Pepsi,

    during this period led to a decline in the sales of Moxie, which had outsold Coca-

    Cola as recently as 1920, and continued to rival Coca-Cola's dominance of the

    American market. The decision of its manufacturer to cut back on advertising

    expenditure led to Moxie's eventual marginalization in the United States.

    The Great Depression, however, also saw a setback for Coca-Cola with the

    arrival of a new competitor Pepsi; by offering twelve-ounce bottles for the

    same price (five cents) as Coca-Cola's six-ounce bottles, as well as a musical

    jingle in its advertising campaign, PepsiCo succeeded in becoming a challenger

    to Coca-Cola's dominance of the American market, with its profits doubling from

    1936 to 1938.

  • 7/28/2019 Cocacola Final

    28/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 28

    Growth Drivers :

    Product and package innovationNon-carbonated beverage and food expansion Growing product availability through cold drink equipment placement and

    outlet expansion.

    Improved customer service and in-market activation Revenue management and cost discipline

    People :

    At COCA COLA people are their business. It foster an open and inclusive

    environment in which their people can strive to always look for a better way.

    They actively promote diversity and equality in their workplace. They

    know their people work hard and, as they move forward, they are putting

    measures in placed to encourage a healthy work-life balance for their employees.

    They are committed to providing and maintaining a safe and healthy workplace

    for all employees, suppliers, contractors and visitors. They constructively deal

    with their people in good faith, while respecting their relationships with their

    people and/or any representatives they may choose.

    These commitments not only meet all legal requirements and national

    standards in the countries in which they do business, but also cultivate a highly

    motivated, productive and committed workforce that drives their business

    success.

  • 7/28/2019 Cocacola Final

    29/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 29

    Work-life balance :

    COCA-COLA recognizes that their employees are constantly juggling

    commitments from their home, work and personal lives. At different times in an

    employees career they may need greater work flexibility and they aim to assist

    them in achieving a healthy work-life balance.

    They provide a number of employee benefits including flexible working

    arrangements through their Flexible Work Options Policy, such as job sharing

    and part-time work, volunteer services leave, and paid parental and adoption

    leave.

    In 2006, in recognition of the fact that their employees may wish to take

    more than their usual annual leave entitlement, they introduced Annual Leave

    Salary Sacrifice Plan, whereby employees are able to purchase additional annual

    leave.

    Learning and Development :

    COCA-COLA employs quality people and develops them for current and

    future roles within a climate of continual learning.

    They provide appropriate and meaningful learning opportunities so that

    their employees can perform at their maximum potential and develop personally

    and professionally.

  • 7/28/2019 Cocacola Final

    30/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 30

    They believe that a productive learning and development environment can be

    achieved through the consistent application of these basic steps:

    Incorporating Learning and Development into Functional BusinessPlans.

    Ensuring access and equity in the provision for and conduct of trainingand assessment opportunities via their individual development plans for

    employees.

    Educating employees about learning and development opportunities. Providing performance management materials on their intranet.

    Remuneration :

    COCA-COLA believes in paying competitively within each market in

    which they operate. They hold each other accountable for performance and

    reward employees commensurate with their performance.

    Their remuneration and benefits are reviewed regularly to ensure they are

    fair and in line with the current market.

  • 7/28/2019 Cocacola Final

    31/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 31

    Equal Employment Opportunity and Diversity

    At COCA-COLA, they value diversity. They believe in equal opportunity

    employment and foster a work environment which is inclusive and allows all

    employees to develop both personally and professionally. They are committed to

    providing a safe and harmonious work environment free from harassment and

    discrimination and in line with legislative requirements. OurWorking Together

    Policy outlines this commitment.

    In addition, there are a number of procedures and initiatives in place that

    ensure they fulfill their commitment to being an equal opportunity employer.

    Initiatives, such, increasing the number of women in their workplace ensure that

    they continue to improve in this area.

    Occupational Health and Safety (OH&S) :

    The occupational health, safety and welfare of all employees are of

    primary concern to Coca-Colas management. They are dedicated to the

    provision of a healthy and safe workplace.

    They acknowledge that OH&S is the responsibility of management and

    every employee, and they recognize the importance of leading and promoting the

    highest principles and practices to ensure health and safety across their

    operations.

    http://www.ccamatil.com/files/1/Working%20Together%20Policy%20V01.1%2001-12-05.pdfhttp://www.ccamatil.com/files/1/Working%20Together%20Policy%20V01.1%2001-12-05.pdfhttp://www.ccamatil.com/files/1/Working%20Together%20Policy%20V01.1%2001-12-05.pdfhttp://www.ccamatil.com/files/1/Working%20Together%20Policy%20V01.1%2001-12-05.pdfhttp://www.ccamatil.com/files/1/Working%20Together%20Policy%20V01.1%2001-12-05.pdfhttp://www.ccamatil.com/files/1/Working%20Together%20Policy%20V01.1%2001-12-05.pdf
  • 7/28/2019 Cocacola Final

    32/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 32

    This is evident through their health and safety philosophy :

    All accidents, incidents and occupational illnesses are preventable. All managers are accountable for the management of health and safety,

    injury management and workers compensation.

    Executive management has direct involvement in the OH&SManagement System and Workers Compensation System.

    Occupational health and safety is a condition of employment and allemployees are responsible for complying with legislative and company

    OH&S requirements.

    Training is a critical component of the OH&S, compensation and injuryprograms.

    Safety audits and inspections are carried out by all organization levels. All hazards and deficiencies shall be corrected promptly. Off-the-job health and safety is an important part of the health and safety

    effort.

  • 7/28/2019 Cocacola Final

    33/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 33

    INDIAN SCENARIO OF SOFT DRINKS INDUSTRY :

    According to government estimates, soft drinks

    marketed in India were 6540 million bottles in March 2001.

    The market growth rate, which was around 2-3% in '80s,

    increased to 5-6% in the early '90s and is presently 7-8% per

    annum. Most of the sales of soft drinks takes place during

    summers while just 5-6% of total sales takes place in winters. In summers, the

    high season lasts for 70-75 days, which contributes more than 50% of the yearly

    sales. In terms of regional distribution cola drinks have main markets in cities and

    northern states of UP, Punjab, Haryana etc.

    Orange flavored drinks and sodas are popular in southern

    states. Western markets have preference towards mango-

    flavored drinks. Non-alcoholic beverage market can be divided

    into fruit drinks and soft drinks. Soft drinks available in glass,

    bottles, aluminum cans, PET bottles or disposable containers can

    be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges

    are carbonated drinks which includes mango drinks. Soft drinks can also be

    divided into cola products and non-cola products. Cola products in Indian include

    brands like Pepsi Cola, Diet Pepsi, Coca- Cola, Diet Coca-Cola, and Thumps up.

    Cola drinks account for nearly 61-62% of the total soft drinks market in India.

    Non-Cola products account for 36% of the total soft drink market.

  • 7/28/2019 Cocacola Final

    34/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 34

    How Coco-cola Entered India :Coca-Cola was forced to leave India in 1977, and Fernandez had

    personally cited this to Cola in his letter when coke was toying around the idea to

    enter India. It was upto coco-cola to offer a very good package to the Indian

    government. The promises that coco-cola made played a central role in bringing

    about an agricultural revolution and employment in the state of Punjab (This was

    a wonderful offer, given the political/social unrest in Punjab during 1980s).

    Focus on food and agro-processing; only 25% of the investment would befor soft drinks business.

    Boost the image of Indian products in foreign markets. Creation of 50,000 jobs in India.

    Finally, in 1988, it entered India, as a 'Lehar Pepsi' brand (remember that

    funny sketch comes for 7-up these days?) Pepsi's entry into India was even noted

    by marketing gurus like Philip Kotler, who said, that Pepsi, apart from using the

    4Ps, also used politics and Public Opinion in the process. But, did Pepsi keep all

    its promises? It didnt, and thankfully, India liberalized, and Pepsi was partly

    saved. But, Pepsi had done good things for this country. It brought about an

    amazing increase in tomato production, through contract farming. It also offered

    its contract farmers with advanced equipments free of cost. It also setup an agro-

    based research center in Punjab and Karnataka.

    Whether Pepsi kept its promise or not, whether the 'pesti'-factor is true or

    not, it is a matter of no concern as far as the scope of this survey is concern. What

    is to be seen in the case of 'Pepsi's entry is the way in which it was executed - a

    strategic coordination of economic, psychological, political and public relations

    skills to gain the cooperation of a number of parties in order to enter India. In

    short, we call it in marketing jargon as Mega Marketing!

  • 7/28/2019 Cocacola Final

    35/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 35

    5. PRODUCT PROFILE :

    Over the years Coca-Cola has gone through a series of Presidents and

    CEOs. These men include Herbert Barnet, Donald M. Kendall, Vic Bonomo,

    John Sculley, Roger Enrico, and Craig Weatherup with each of these men helping

    coco-cola grow by leaps and bounds. The rest of this profile could go into the

    contributions of each of these men.

    Coco-Cola has achieved huge success as a soft

    drink. However, this was a two sided coin in that Coco-

    Cola was also seen as a cheap soda. Coco-cola had to

    change this perception, and to do so they switched their

    marketing strategy. Starting in 1958 coco-cola began to

    lose its reputation as a bargain soda, and instead started

    becoming a soda that was preferred by fashionable young

    adults. By the mid 1960's the United States was full of

    teenagers that had been born shortly after World War II. They were the "Baby

    Boomers" and they were also the "coco-cola Generation." Coco-cola also

    continued to keep its product from becoming old fashioned by occasionally

    making small changes in packaging throughout the years. They updated their

    logo, they replaced the straight sided bottle with the "Swirl" bottle, and also

    moved from the 12 ounce bottle to a 16 ounce bottle.

    Coco-cola also started providing other lines of products. They introduced

    Teem (a lemon/lime based soda). They purchased and went national with

    Mountain Dew, and also introduced Slice, and started offering a diet version of

    coco-cola as well. However, one of the biggest changes to occur to coco-cola

  • 7/28/2019 Cocacola Final

    36/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 36

    happened in 1965 when they merged with Frito-Lay and became PepsiCo,

    Incorporated.

    In 1975 coco-cola introduced the coco-cola Challenge. This was a

    marketing campaign where they set up a blind tasting between their product and

    that of their arch-rival Coca-Cola. During these blind taste tests, majority of the

    participants picked coco-cola as the better tasting of the two soft drinks. Over the

    next several years coco-cola went on to expand this " coco-cola Challenge"

    throughout the nation. They also started designing television commercials that

    reported the results of these tests to the public at large. coco-cola also continued

    to invest heavily in advertising and started using celebrities such as Michael

    Jackson, Tina Turner, Michael J. Fox, Joe Montana, Dan Marino, Vice

    Presidential contender Gealdine Ferraro, and many others to help them market to

    the

    "New Generation." It wasn't long before coco-

    cola became the number one soft drink sold in

    American supermarkets and they were closing in on

    becoming the most popular soft drink sold in the

    nation.

    The coco-cola Challenge and the coco-cola

    advertising blitz were clearly having an effect with more and more people

    switching from Pepsi to Coca-Cola. As a result other soft drink company made

    the decision to change their formula to taste more like coco-cola. Of course,

    coco-cola took advantage of this situation and really had a field day making fun

    of other soft drink companies. The president of Pepsi, Roger Enrico, gave his

    employees a day off by declaring a holiday to celebrate the day they won the cola

  • 7/28/2019 Cocacola Final

    37/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 37

    wars. Television commercials, full page ads in major newspapers, and lots of

    comedians all on their own, took their shots as well. There was such uproar to

    this formula change that within a couple of months Coca-Cola had brought back

    the original Coca-Cola. After switching back to their original formula, Coca-Cola

    and Pepsi continued to battle it out for supremacy in the cola wars. coco-cola

    continued to make some great commercials. They featured famous personalities

    such as Ray Charles, Shaquille O'Neal and others.

    coco-cola also moved into other beverage categories by working out deals

    with Lipton, Ocean Spray, and Starbucks. coco-cola has continued to expand

    globally throughout the years until practically every nation on the face of the

    earth either has a bottling plant of their own, or can at least buy a bottle of Pepsi.

    By 1993, Coke-Cola profits had surpassed $1 billion, and in 1998 Coco-cola

    celebrated its 100th anniversary.

    Carbonated Soft Drinks and Functional beverages :

    Coca-Cola manufactures and distributes a range of carbonated soft drinks

    and functional beverages. Many of the brands are trademarks of The Coca-Cola

    Company such as Lift, Sprite, Fanta and Powerade. It also controls a portfolio of

    its own beverages including Kirks and Deep Spring.

    Health and Wellbeing :

    In recent years Coca-Cola Company has become a broader beverage

    company, offering different solutions for different drinking occasions.

    Water,Juice and low calorie CSD's are increasingly becoming the growth

    categories of its business.

  • 7/28/2019 Cocacola Final

    38/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 38

    In 2004 Coca-Cola Company acquired SPC Ardmona. This acquisition

    moved into the food manufacturing and distributing business.

    Some ofCoca-Cola Beverage Brands:

    Coca-Cola

    Sprite

    Thumps Up

    Fanta

    Maaza

    Finley water

    COMPETATORS OF COCA COLA:

    Pepsi

    Slice

    7up

    Aquafina

    Mountain Dew

    Other beverages

  • 7/28/2019 Cocacola Final

    39/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 39

    PRODUCTS OF COCA-COLA :

  • 7/28/2019 Cocacola Final

    40/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 40

    CHAPTER6

    THEORETICAL ASPECTS

    6.1 INTRODUCTION :

    The term Consumer refers to a person who buys goods or services for his

    personal or household use and not for resale.

    Consumer behaviour is that behaviour exhibited by consumers in planning,

    purchasing and using economic goods and services for the satisfaction of their

    wants.

    Prof. Paul G. W and Prof. Walter C. G define Consumer behaviour is the

    process whereby individuals decide what, when, where, how and from whom to

    purchase goods and services.

    Buying behaviour is a process where potential customers are subjected to

    various stimuli. The customer is regarded as a Black box as we cannot see what is

    going on his mind. He responds to the stimuli or inputs and may purchase some

    product or service of interest to the marketing management.

    6.2 MODEL OF BUYER BEHAVIOUR :

    The model of buyer behaviour is stimulus-response model. Response may

    be decision to purchase or not purchase.

  • 7/28/2019 Cocacola Final

    41/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 41

    Under the systems view of buyer behaviour, we have :

    1. Inputs.2. Processing.3. Outputs.4. Feedback loop.

    Since, the buyer behavior is the corner stone of the marketing strategy,

    manager should be aware of different models or theories which determine the

    buyer behaviour.

    6.3 DETERMINANTS OR MODELS OF CONSUMER BEHAVIOUR :

    The following are the important determinants or models of consumer behavior :

    1. Economic model.

    2. Psychological model.

    3. Socio-cultural model.

    4. Organizational model.

    5. Government regulation.

    4.4 TYPES OF CUSTOMERS :

    The marketing manager should have the knowledge of various types of

    customerstheir attitudes and behavior and ability to recognise and handle them.

    A sales man must be aware of all customers are not like men many minds. Each

    customer has his own personality and his psychological make-up.

  • 7/28/2019 Cocacola Final

    42/65

  • 7/28/2019 Cocacola Final

    43/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 43

    consumer evaluates the purchase and the satisfaction it is or is not delivering. Let

    us now describe briefly the five steps in the purchase decision process.

    1. Perceived want or Desire : Buying process begins when a person beginsto feel that a certain need or desire has arisen and ti has to be satisfied.

    Needs may be ignited by internal stimulus or some external stimulus called

    a sign or cue. The intensity of want will indicate the speed with which a

    person will move to fulfill the unsatisfied want. Communication-mix not

    only triggers true needs and desires of customers but also offers attractive

    cues or selling points in the buying process.

    2. Information search : aroused needs can be satisfied promptly when thedesired product is not only known but also easily available. Consumer can

    tap many sources of information, e.g. family, friends, neighbors, opinion

    leaders, and acquaintances. Marketers also provide relevant information

    through salesmen, advertise, dealers, packaging, sales promotion, and

    window display. We have also mass media like newspapers, radio,

    television.

    3. Evaluation of Alternatives : Available information can be employed toevaluate the alternatives. This is the critical stage in the process of buying,

    particularly costly durable goods

    .

    4. Purchase Decision :while the consumer is evaluating the alternatives, she/hewill develop some likes and dislikes about the alternative brands. This attitude

    towards brands influences her/his intention to buy.

  • 7/28/2019 Cocacola Final

    44/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 44

    5. Post Purchase Experience and Behaviour : The brand purchase and theproduct use provides feedback of information regarding attitudes. If the

    level of satisfaction derived is as per expectations, it will create brand

    preference influencing future purchase. But if the purchase brand does not

    yield desired satisfaction negative feelings will occur and this will create

    anxiety and doubts. This phenomenon is called cognitive dissonance. the

    consumer will wonder whether he/she would have been better off by

    buying a kelvinator refrigerator. The greater the importance of your

    purchase decision and more the attractiveness of your reflected alternative,

    the higher will be the degree of dissatisfaction or dissonance.

    6.6 MARKETING STRATEGY OF COCO-COLA SOFT

    DRINKS :

    Product Mix :Coco-cola Company manufactures and markets, a wide arrange of

    products such as Slice, Sprite, Maza, and Thumsup, which include Mineral

    and Heavy Flavor Coating for maintenance purpose. Coco-cola soft drink

    provide wide range of color and quantity and different kinds of surface. All

    the Flavor are created by Coke company. They Manufacture the product

    according to the Indian Taste.

    Distribution Mix :In Karnataka, the distribution network of the company consists of 56

    sales offices and 16 Regional Distribution centers each with its own

  • 7/28/2019 Cocacola Final

    45/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 45

    warehouse distributing products to cater over 15,000 retail outlets and

    Resorts users spread across the country.

    In every place where there is a population of around 20,000 there is an

    coco-cola product dealer. There is no middle men or sub stockiest. When

    an order placed to the company the company distributes the goods to the

    dealer directly from its own godown.

    As there are no middle men, the service is fast. It reaches to the end

    user i.e., the consumers in a very short time. In Hagaribommanahalli the

    company has got 6 dealers.

    Promotion Mix :The company promotes the products through advertisement in

    Television, maga- zines etc. The ads are created bearing in mind, the

    culture, people, area etc. The ads are seasonal in nature. The advertisers for

    coco-cola product is O and M (Oglive and Mother). Most of the ads are

    created on the basis of the family as the members of the family and taste of

    the students who decides the taste according to them.

    Price Mix :The prices of the products of the company are on par when

    compared with the other companies in the organized sector.

    6.7 MARKET RESEARCH :

    Coca-Cola's most senior executives commissioned a secret effort named

    "Project Kansas," headed by marketing vice president Sergio Zyman and Brian

    Dyson, president of Coca-Cola USA, to test and perfect the new flavor for Coke

    http://en.wikipedia.org/wiki/Sergio_Zymanhttp://en.wikipedia.org/wiki/Sergio_Zyman
  • 7/28/2019 Cocacola Final

    46/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 46

    itself. It took its name from a famous photo of that state's renowned journalist

    William Allen White drinking a Coke that had been used extensively in its

    advertising and hung on several executives' walls. The company's marketing

    department again went out into the field, this time armed with samples of the

    possible new drink for taste tests, focus groups, and surveys.

    The results of that were strong the high fructose corn syrup mixture

    overwhelmingly beat both regular Coke and Pepsi. Then tasters were asked if

    they would buy and drink it if it were Coca-Cola. Most said yes, they would,

    although it would take some getting used to. A small minority, about 10-12%, felt

    angry and alienated at the very thought, saying that they might stop drinking

    Coke altogether. Their presence in focus groups tended to skew results in a more

    negative direction as they exerted indirect peer pressure on other participants.

    The surveys, which were given more significance by standard marketing

    procedures of the era, were less negative and were key in convincing

    management to move forward with a change in the formula for 1985, to coincide

    with the drink's centenary. But the focus groups had provided a clue as to how the

    change would play out in a public context, a data point that the company

    downplayed but which was to prove important later.

    Management also considered, but quickly rejected, an idea to simply make

    and sell the new flavor as yet another Coke variety. The company's bottlers were

    already complaining about absorbing other recent additions into the product line

    in the wake of Diet Coke. Many of them had sued over the company's syrup

    pricing policies. A new variety of Coke in competition with the main variety

    could, if successful, also dilute Cokes existing sales and increase the proportion

    of Pepsi drinkers relative to Coke drinkers.

    http://en.wikipedia.org/wiki/Journalisthttp://en.wikipedia.org/wiki/William_Allen_Whitehttp://en.wikipedia.org/wiki/Focus_grouphttp://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/High_fructose_corn_syruphttp://en.wikipedia.org/wiki/Peer_pressurehttp://en.wikipedia.org/wiki/Centuryhttp://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Syruphttp://en.wikipedia.org/wiki/Centuryhttp://en.wikipedia.org/wiki/Peer_pressurehttp://en.wikipedia.org/wiki/High_fructose_corn_syruphttp://en.wikipedia.org/wiki/Statistical_surveyhttp://en.wikipedia.org/wiki/Focus_grouphttp://en.wikipedia.org/wiki/William_Allen_Whitehttp://en.wikipedia.org/wiki/Journalist
  • 7/28/2019 Cocacola Final

    47/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 47

    Early in his career with Coca-Cola, Goizueta had been in charge of the

    company's Bahamian subsidiary. In that capacity, he had improved sales by

    tweaking the drink's flavor slightly, so he was receptive to the idea that changes

    to the taste of Coke could lead to increased profits. He believed it would be "New

    Coke or no Coke", and the change must take place openly. He insisted that the

    containers carry the "NEW!" label, which gave the drink its popular name.

    Goizueta also made a visit to his mentorand predecessor as the company's

    chief executive, the ailing Robert W. Woodruff, who had built Coke into an

    international brand following World War II. He claimed he had secured

    Woodruff's blessing for the reformulation, but even many of Goizueta's closest

    friends within the company doubt that Woodruff truly understood what Goizueta

    intended. Goizueta always said he had.

    6.8: Profile of the Study Area:

    Location:Hagaribommanahalli is situated in central part of the Karnataka. In

    longitudes it is situated between 14 degree 28 North latitude and

    76 degree 56 east.

    Economic activities :There are several small and medium scale industries situated in this

    city. It is famous for cotton and paddy marketing. There are many

    http://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Mentorhttp://en.wikipedia.org/wiki/Robert_W._Woodruffhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/Robert_W._Woodruffhttp://en.wikipedia.org/wiki/Mentorhttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Bahamas
  • 7/28/2019 Cocacola Final

    48/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 48

    factories like cotton, rice mills etc. Main crops are paddy, maize,

    cotton, ground nut, Jawar and sunflower

    Demography :The population of Hagaribommanahalli town in 2001 was 7042 as

    per a population census. In 1981 it was gone upto 40.26 an in same

    way it increased in 22,345 in 1991. Now it is more than 1 lakhs.

    Education and Literacy

    It is one of the famous education center with number of reputed

    institutions like Diploma, Ded, BPEd, arts, commerce, science and

    Management .

    Extent:The city stretched over a total area of 6.25 Sq. Kms. The old city

    has a history of more than 1 hundred years. The new city is relatively

    big area with fast growing educational institutional and hospitals.

  • 7/28/2019 Cocacola Final

    49/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 49

    Transport and Communication:

    The KSRTC, Private operators, Lorry offices and Southern Railway

    are providing required quick transport facilities to the city. Howeverthe road conditions not so good. VRL transport system also available.

    The post and telephone office, internet, telecom department and

    private operators are providing the required assistance in the free flow

    of communication

    Now, Hagaribommanahalli is accessible to other parts of the state

    through Mobile services at local rates.

    Dealar office of cocacola company

    The dealar of cocacola company is Malatesh Cool Drinks since 20

    years. Located at main state Highway. Center of the

    Hagaribommanahalli city near main bus stand.

  • 7/28/2019 Cocacola Final

    50/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 50

    CHAPTER7

    7.1 INTRODUCTION :

    Summery means going into the depth of the responses and collecting inner

    expression for the purpose of knowing attitudes of the respondents about which

    the survey is conducted.

    The purpose of conducting the survey is the in-depth study of the attitudes

    of the members and problems faced by them while dealing with Consumers of

    the soft drinks in Hagaribommanahalli.

    For the purpose of survey Questionnaires were prepared and were given to

    consumers. The entire area covered by the survey is classified into different parts

    and the members are given the format of questionnaires and are requested to fill it

    and return to us.

    The survey has been successfully carried out and the respondents are

    having close contact with the company. They have good and realistic answers to

    the questions.

  • 7/28/2019 Cocacola Final

    51/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 51

    With the help of the survey, The replay of the respondents are

    analyzed as follows :

    TABLE1

    The table showing the Age level of the customers who drink soft drink :

    SlNo.

    Years No. ofRespondents

    Percentage [%]

    1 0-10 18 18

    2 10-20 33 33

    3 20-40 41 41

    4 40 & above 08 08

    Total 100 100With the help of the above table the diagram shows the level of respondents

    according to Age groups :

    with the help of the above diagram it is clear that the 18% of the respondents are

    below 10 years age level, 33% of the respondents are of 10-20 years age level,

    41% of the respondents are of between 20-40 years age level and the remaining

    8% of the respondents are above the 40 years age group.

    0

    10

    20

    30

    40

    50

    6070

    80

    90

    100

    0-10 20-Oct 20-40 40 &

    above

    Total

    No. of Respondents

    No. of Respondents

  • 7/28/2019 Cocacola Final

    52/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 52

    TABLE2

    The table showing on the basis of occupation of the customers who drink

    soft drink :

    SlNo.

    Occupation No. ofRespondents

    Percentage [%]

    1 Students 50 50

    2 BusinessPeople

    20 20

    3 Others 30 30

    Total 100 100

    With the help of the above table the diagram shows the level of respondents

    according to their Occupation :

    with the help of the above diagram it is clear that the 50% of the respondents are

    Students, 20% of the respondents are Business People, 30% of the respondents

    are of Other category people like house wife.

    50%

    20%

    30%

    Students Business People Others

  • 7/28/2019 Cocacola Final

    53/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 53

    TABLE3

    The table showing the number of soft drinkers according to Sex :

    Sl

    No.

    Sex No. of

    Respondents

    Percentage [

    %]1 Male 62 62

    2 Female 38 38

    Total 100 100

    With the help of the above table the diagram shows the level of respondents

    according to the sex :

    with the help of the above diagram it is clear that the 62% of the Male

    respondents drink soft drinks, 32% of the Female respondents drink soft drink. It

    is clear that the Males are more than female to prefer to drink soft drinks.

    0

    10

    20

    30

    40

    50

    60

    70

    No. of Respondents Percentage [ %]

    Male

    Female

  • 7/28/2019 Cocacola Final

    54/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 54

    TABLE4

    The table showing the number of soft drinkers according to Brand :

    Sl

    No.

    Brand No. of

    Respondents

    Percentage [

    %]1 Pepsi 26 26

    2 Coco-cola 42 42

    3 Slice 20 20

    4 Mountaindue

    12 12

    Total 100 100

    With the help of the above table the diagram shows the level of respondents

    according to the sex :

    with the help of the above diagram it is clear that the 26% of the respondents

    prefer to drink Pepsi, 42% of the respondents Prefer to drink Coco-cola, 20% of

    the respondents prefer to drink Slice and remaining 12% of the respondents

    prefer to drink Mountain due.

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Pepsi Coco-cola Slice Mountain

    due

    No. of Respondents

  • 7/28/2019 Cocacola Final

    55/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 55

    TABLE5

    The table showing the number of soft drinkers according to their reason to

    prefer coco-cola :

    SlNo.

    Reasons No. ofRespondents

    Percentage [%]

    1 Taste 46 46

    2 Availability 12 12

    3 Price 22 22

    4 Good tohealth

    20 20

    Total 100 100

    With the help of the above table the diagram shows the level of respondentsaccording to the sex :

    with the help of the above diagram it is clear that the 46% of the respondents

    prefer to drink coco-cola because of its Taste, 12% of the respondents Prefer to

    drink Coco-cola because of its availability, 22% of the respondents prefer to

    drink coco-cola because the price of coco-cola is low when compare to other soft

    drink.

    46%

    12%

    22%

    20%

    Taste

    Availability

    Price

    Good to health

  • 7/28/2019 Cocacola Final

    56/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 56

    TABLE6

    The table showing the number of soft drinkers according to their reason to

    prefer coco-cola :

    SlNo.

    Opinion No. ofRespondents

    Percentage [%]

    1 Best 56 56

    2 Good 17 17

    3 Average 27 27

    4 Bad 00 00

    Total 100 100

    With the help of the above table the diagram shows the level of respondents

    according to the Opinion :

    with the help of the above diagram it is clear that the 56% of the respondents

    satisfied with the Taste of the coco-cola, 17% of the respondents their good

    opinion about Coco-cola , 27% of the respondents the average satisfaction about

    the coco-cola soft drink.

    0 20 40 60

    Best

    Good

    Average

    Bad

    No. of Respondents

  • 7/28/2019 Cocacola Final

    57/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 57

    TABLE7

    The table showing the number of respondents according to their

    satisfaction towards coco-cola :

    SlNo.

    Satisfaction No. ofRespondents

    Percentage [%]

    1 Yes 86 86

    2 No 14 14

    Total 100 100

    With the help of the above table the diagram shows the level of respondents

    according to their Satisfaction :

    with the help of the above diagram it is clear that the 86% of the respondents

    satisfied with the coco-cola soft drink, 14% of the respondents not satisfied

    because of the price is high and it is more strong to drink.

    0 20 40 60 80 100

    Yes

    No

    No. of Respondents

  • 7/28/2019 Cocacola Final

    58/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 58

    TABLE8

    The table showing the number of respondents prefer to drink according to

    the season :

    SlNo.

    Season No. ofRespondents

    Percentage [%]

    1 Summer 60 60

    2 Winter 12 12

    3 Rainy 08 08

    4 In All season 20 20

    Total 100 100

    With the help of the above table the diagram shows the level of respondentsaccording to the season :

    with the help of the above diagram it is clear that the 60% of the respondents use

    to drink coco-cola soft drink in summer season, 12% of the respondents use todrink soft drink in winter season, 08% of the respondents are use to drink soft

    drink in Rain season also, and the remaining 20% of the respondents use to drink

    soft drink in all seasons.

    60%12%

    8%

    20%

    Summer Winter Rainy In All season

  • 7/28/2019 Cocacola Final

    59/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 59

    CHAPTER8

    8.1 SUMMARY OF FINDINGS :

    1. It was found that many number of the customers were from between theage level of 20-40 years.

    2. It was also found that the majority of the coco-cola drinkers are Male.

    3. It was also analyzed that the majority of the soft drinkers prefer to drinkcoco-cola soft drink.

    4. We also find that the most of the Best opinion about the coco-cola drink.

    5.

    In this survey the 86% of the respondents satisfied with the coco-coladrink.

    6. With the help of the above survey it is clear that people will drink thecoco-cola soft drink in all seasons.

    7.

    We also find that the fast moving product is coco-cola Brand only.

  • 7/28/2019 Cocacola Final

    60/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 60

    8.2 SUGGESTIONS :

    1. The price of the product is very high for the low class people.

    2. In order to maintain the Turnover many of the manufacturer decrease theirquality, by this product demand will be decrease, maintain quality.

    3. By decreasing the Price level the product will be sell more.

    4. Improve the Advertising technique by adding the film stars, because manyof the people buy the product on the basis of their favorite film stars.

    5. By increasing the offers the people will prefer more to buy this productonly.

  • 7/28/2019 Cocacola Final

    61/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 61

    8.3 CONCLUSION :

    1. With the help of the survey we came to conclude that the majority of thesoft drinkers were students.

    2. The Male people drink coco-cola when compared to Female.3. The turnover of the coco-cola product is more high with other than others.4. The people will prefer to drink the coco-cola product because of the Good

    Taste, availability, and good price to buy.

    5. The people will drink the soft drink during all the seasons also.6. The company also provide the many good offers to the consumers in price

    level and gift hampers.

    7. The quality of the coco-cola product is very good because of this the oldaged people use to drink the coco-cola.

  • 7/28/2019 Cocacola Final

    62/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 62

    QUESTIONNAIRE

    Dear Sir / Madam,

    I am Manjunatha Beluru a student of G.V.P.P. Govt First Grade College

    Hagaribommanahalli. Studying in Final Year B.B.M. as a part of my Academic

    curriculum, I have under taken the project work on Consumer Satisfaction

    towards Coco-cola soft drink, with special reference to Malatesh marketing

    service, a case study in Hagaribommanahalli Town. I request you to kindly

    answer the following questions as accurately as possible.

    Thanking you,

    Yours faithfully,

    Manjunatha B

  • 7/28/2019 Cocacola Final

    63/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 63

    1. Name :

    2. Age :

    a) below 10 years [ ] b) 15 to 20 years [ ]

    c) 20 to 40 years [ ] d) above 40 years [ ]

    3. Occupations :

    a) Students [ ] b) Business People [ ]

    c) Others [ ]

    4. Sex :

    a) Male [ ] b) Female [ ]

    5. Would you like to drink soft drink ?

    a) Yes [ ] b) No [ ]

    6. Which Brand you Prefer most to drink?

    a) Pepsi [ ] b) Coco-cola [ ]

    c) Slice [ ] d) Mountain due [ ]

  • 7/28/2019 Cocacola Final

    64/65

    A Case study on Consumer Satisfaction towards coco-cola

    G.V.P.P. Govt First Grade College, in H.B.Halli Page 64

    7. What make you to prefer the Coco-cola brand ?

    a) Taste [ ] b) Availability [ ]

    c) Price [ ] d) Good to health [ ]

    8. Opinion about coco-cola product.

    a) Best [ ] b) Good [ ]

    c) Average [ ] d) Bad [ ]

    9. Are you satisfied with the price level of coco-cola product.

    a) Yes [ ] b) No [ ]

    10. In which season you prefer to drink soft drink.

    a) Summer [ ] b) Winter [ ]

    c) Rainy [ ] d) In all season [ ]

  • 7/28/2019 Cocacola Final

    65/65

    A Case study on Consumer Satisfaction towards coco-cola

    BIBLIOGRAPHY

    Books for Reference

    o Marketing Management - Philip Kotler- Sherlekar

    - M.N. Mishra

    - Dr. C.R. Kothari

    o Magazine.o Advertisement Broachers.o Websites.