Brand Dossier project on Coca cola, Praxis Business School

1. A BRAND DOSSIER ON
PART-III
A PROJECT SUBMITTED TO
PROF.SRINIVAS GOVINDRAJAN
IN PARTIAL FULFILLMENT FOR THE REQUIREMENT OF THE COURSE
AS ON 22/9/2011
FOR
MARKETING MANAGEMENT-1
Submitted by:-
Adnan Kitabi-B11003
AnubhutiAnup-B11008
GauravTalwar-B11019
Ranabir Pal-B11034
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2. INDEX
Pg no
PHASE I 04
Inception. 05
Initial positioning and subsequent repositioning. 07
Advertising strategy 09
Sales promotion strategy 17
Segmentation strategy. 20
Analysis of product 22
Generic competition 25
Strategies adopted to tackle competition or prime market expansion 27
Distribution strategy 31
Future directions for the brand 33
PHASE II 35
Hypothesis 36
Justification of taking the hypothesis 36
List of information required to be collated 36
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3. Instrument of data collection 37
Questionnaire 38
Sample size and sampling plan 40
Methods of Data Analysis 40
PHASE III 41
Analysis of primary research 42
NET TAKEAWAY 50
Bibliography 51
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4. PHASE I
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5. INCEPTION
Coca Cola was invented by Dr John.S.Pemberton (pharmacist from Atlanta
Georgia) in May 1886. He concocted the formula in his backyard. Carbonated water
was added to syrup to make it a refreshing drink. The flowing letters which has
become the logo of the company today is the gift of Frank Robinson (bookkeeper of
Dr Pemberton). Till 1905 the drink was served with cocaine & was supposed to be
the remedy for headache.
In 1887 Asa Candler (another pharmacist from Atlanta Georgia) bought the
formula from Dr Pemberton for 2300$. Due to his aggressive marketing strategy
Coca Cola‟s sale went up by 4000% between 1890 and 1900. By the turn of the 20 th
century the product was being sold in US & Canada.
In 1915, Pepsi went for bankruptcy & was offered to Coca Cola to take over
as it was the only other major soft drink in the country. But Coca Cola didn‟t
accepted that offer as they thought it to be a liability to take over a loss making
company. A blunder that haunts Coca Cola till date.
Coca Cola elevated itself from just a product to a symbol of patriotism during
World War-II when they decided to sell the drink to the military men for 5 cents per
bottle (thereby obtaining the license of unlimited cultivation of sugar). This made it
the drink of America.
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6. In 1963, Pepsi positioned itself as a product of youth. The strategy was so
influential that it became like a trend in US that a person with a bottle of Pepsi in his
hand was considered to be hip identifying himself as a new age American & a
person with a bottle of Coca Cola in his hand was considered to be orthodox old age
American. Coca Cola identified this trend & again invoke the patriotic sentiments of
the American by identifying itself as the drink of America which helped them retrieve
the market which was lost to Pepsi.
In 1985, Coca Cola did something unthinkable. They changed the taste of
Coca Cola & the new product was launched in the name of Coca Cola refresh. The
strategy failed big time as there was not only drop in the sales but there was wide
spread feeling of dissatisfaction among Americans who proclaimed that Coca Cola
had robbed the drink of America. The issue was finally settled, as they re-launched
Coca Cola in the name of Coca Cola classic.
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7. INITIAL POSITIONING & REPOSITIONING
Dr John Pemberton initially positioned Coca Cola as a medicine for headache
with a refreshing taste. Subsequently, Asa Candler bought the formula &
aggressively marketed the product & made it available in local bars & parlour. He
bought the drink at the “arm length‟s distance” for the consumer. But there was one
major problem, the drink was still considered as a medicine & a drink which is
consumed with cocaine. It took more than a decade of advertisement before
consumer accepted the product as a beverage which can be consumed any time.
In 1931, Coca Cola introduced Santa Claus to aid there promotion. Apart from
re-instating the fact that the drink is a symbol celebration & should be enjoyed with
the happy moments it also positioned itself as a drink which can be consumed even
in winter(as Christmas falls in winter in most parts of the world) there by making it as
a drink which can be consumed in any time of the year.
The strategy to distribute the drink to the military personnel at 5 cents per
bottle & making it available to all military personal deployed anywhere in the world,
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8. during World War II transformed Coca Cola from a product to a symbol of patriotism
in the United States.
In India Coca Cola was 1st launched in the late 1970‟s. But FERA Act (1973)
compelled them to discontinue their operations in India. In early 1990‟s in the new
liberalized Indian economy, Coca Cola came back with vengeance, acquiring
dominant market brands like Thumps up (a product of RPG) laying a platform for its
operations in India.
Initially, it targeted the high income group with high price & eye catchy
advertisement. Later it repositioned itself as a drink for the masses and slowly as the
cost of operations became cheaper it penetrated the market of middle & lower
middle income group with the reduction in price.
It has distinctively positioned itself in urban & rural India. With the yawning
mind-set gap between the two markets, Coca Cola in urban India has positioned
itself as a symbol of style & celebration, while in rural India it is essentially a product
which quenches thirst.
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9. Advertisement Strategy
“125 years of sharing happiness” this line itself defines how big the brand
Coca-Cola is. The brand has evolved with time and thus with respect to time its
advertisement strategy has also changed. As the company has a global market so
the advertisement strategy followed by Coca-cola was different in different
countries. But it also had to keep in mind the global advertisement strategy while
creating an advertisement for a specific country so that both the two advertisement
strategy does not clash with respect to the message it wants to convey.
There is a remarkable story about the evolution of an iconic brand and the
company that bear its name. Since its birth Coca‑Cola has been a catalyst for social
interaction and inspired innovation. These unique moments in history, arranged in
chronological sequence, have helped create a global brand that provides billions of
moments of refreshment every day.
Advertisement strategy during 1880’s:
At the inception Coca-Cola was a tonic which used to cure headache and thus
it was advertised as “The ideal brain tonic”.
Advertisement strategy during 1890’s:
In order to make it a mass product it‟s medicinal qualities was not highlighted
but it was positioned as a beverage which was delicious and refreshing. The tag line
used was “Drink Coca-Cola -- delicious and refreshing -- 5 cents at all soda fountains
Advertisement strategy during 1900’s:
Music hall performer Hilda Clark becomes the first celebrity to appear in
multiple advertising formats, including trays, posters and even bookmarks (1900).
This was the first time that Coca-Cola used a celebrity in their campaigning. And this
was a land mark in the advertisement industry as it lead to the concept of celebrity
endorsement. And thus in 1904 Lillian Nordica, noted opera singer, endorsed
Coca‑Cola which was nationwide advertisement.
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10. In 1901 the advertising budget surpassed $100,000 for the first time.
The first advertising for Coca‑Cola appeared in national magazines in 1904.
The 1900‟s is noted in the history of Coca-Cola in a different way because it
was the time when Coca-Cola advertised hugely to position itself as a quality
product. The tag lines used were- “Good All the Way Down”; “Good to the Last
Drop”; “Palate Pleasing”.
Thus it helped in growth of Coca-Cola to 1 million-gallon mark.
Advertisement strategy during 1910’s:
During this period Coca-Cola was trying to position itself as a social drink that
quenches thirst. The tag line used during that period were “A Welcome Addition to
Any Party”; “The Thirsty One‟s Best Beverage”; “3 Million a Day”; “Enjoy a Glass of
Liquid Laughter”
Advertisement strategy during 1920’s:
Coca-Cola was previously positioned as a summer drink. So in order to
expand its market it positioned itself as a drink which can be taken any time to
refresh own self. The tag lines were “Thirst Knows No Time Nor Season”; “The
Pause that Refreshes”.
In 1925 outdoor billboards were introduced as part of the advertising mix.
In 1927 The Company sponsored its first radio program, “Vivian the
Coca‑Cola Girl.”
Advertisement strategy during 1930’s:
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11. In this phase Coca-Cola tried to position itself as a necessity which quenches
thirst and is always beside you when required (indirectly implied its distribution is
strong all over the country). The tag lines used were “The Best Friend Thirst Ever
Had”; “Coca‑Cola Goes Along”; “Whoever You Are, Whatever You Do, Wherever
You May Be, When You Think of Refreshment, Think of Coca‑Cola”
In 1931 Coca-Cola tried to create an advertising program that links
Coca‑Cola with Christmas to increase the sales of Coca-Cola during winters. Artist
Haddon Sundblom was hired for it and he thus created his illustration showing Santa
Claus pausing for a Coke saying “Ice Cold Sunshine”. The advertisement became so
famous that for the next three decades, from 1931 to 1964, Sundblom painted
images of Santa became the face of Coca-Cola, specially during the christmas.
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12. Advertisement strategy during 1940’s:
Coca-Cola made a major breakthrough in the market by associating coke and
Coca-Cola as similar product through advertisement. The Sprite Boy character was
introduced in advertising to convey the message that “Coca‑Cola” and “Coke” are
two terms that refer the same product. They didn‟t stop at here, they marketed Coca-
Cola as “The Only Thing Like Coca‑Cola Is Coca‑Cola Itself”.
The world was going through World War 2 during this phase and American
soldiers were spread all over the world during this time. 1943 The U.S. government
requests that
Coca‑Cola be made available to the troops. Robert Woodruff pledged to
provide Coke to the military for a nickel regardless of what it costs the company to
produce the product. During the war, Coca-Cola provided the troops with Coca-Cola
to refresh them. And the company advertised its patriotism through tag lines such as
“Where There‟s Coke, There‟s Hospitality”; “My old friend coke”. Thus Coca-Cola
was being automatically associated as the drink of the true Americans.
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13. Advertisement strategy during 1950’s:
In 1950 The first television commercial for Coca‑Cola was broadcast on
Thanksgiving Day on a CBS half-hour special featuring Edgar Bergen and Charlie
McCarthy.
During this phase Coca-Cola was portrayed as a taste enhancer and thus the
tag lines were“Coca‑Cola Makes Good Things Taste Better”; “Sign of Good Taste”
Advertisement strategy during 1960’s:
In 1963 “Things Go Better with Coke” advertising campaign became a huge
hit. On the radio, pop singers like The Supremes, Ray Charles, Aretha Franklin, Jan
and Dean, Roy Orbison and The Coasters used their unique musical styles to swing
the jingle. On television, celebrities like football star Joe Namath, designer Anne
Klein, golfer Arnold Palmer and jazz vocalist Barbara McNair endorsed Coca‑Cola.
In 1969 the launch of the new slogan “It‟s the Real Thing” ushered in a new
advertising look for brand Coke. And thus again was telling customers that “Coca-
Cola” means “coke”
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14. Advertisement strategy during 1970’s:
During this period advertisement like “Coke Adds Life” made it clear to its
customer that by having a bottle of Coca-Cola people gets energy and enthusiasm to
perform. The advertisement portrayed Coca-Cola as the drink which the sportsmen
drink.
Advertisement strategy during 1980’s:
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15. In 1980 a Coca‑Cola contour bottle became the central focus of the movie
“The Gods Must Be Crazy.”
“Coke is it”; “Catch the wave”; “You can‟t beat the felling” were the
advertisement which Coca-Cola used to make non Coca-Cola drinkers to go with the
crowd.
Advertisement strategy during 1990’s:
In 1993 the popular Coca‑Cola polar bears were introduced in the commercial
“Northern Lights.” This was done to remind people that people can drink Coca-Cola
even during winters as the polar bears do.
In 1996 the Centennial Olympic Games were held in Atlanta. The Coca‑Cola
Company created Coca‑Cola Olympic City as a way to entertain fans. This again led
to worldwide coverage of Coca-Cola in television.
Advertisement strategy during 2000’s:
“Open Happiness ” is the modern generation slogan of Coca-Cola which
portrays Coca-Cola is attached with happiness .
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16. Advertisement strategies in India
In India Coke‟s advertising strategy pulled the marketing plan together using
local language and idiomatic expressions in 2001. “Thanda,” meaning cool/cold is
also generic for cold beverages and gave “Thanda Matlab Coca-Cola” delicious
multiple meanings. Literally translated to “Coke means refreshment,” the phrase
directly addressed both the primary needof this segment for cold refreshment while
at the same time positioning Coke as a “Thanda” or generic cold beverage just like
tea, lassi, or lemonade.
The next advertisement tag line was "Pio sar utha ke" which means "Drink
with pride"
Then came the "Jo chaho ho jaye, Coca-Cola enjoy!" advertisement which
means "Whatever you wish will come true, enjoy Coca-Cola!"
In rural India advertising the product was a major problem as there was no
electricity to promote the product through television commercials. They also cannot
use newspaper as majority of the people were illiterate and thus they never
purchased the newspaper. So the company chose wall painting to advertise itself.
They also use public transport to advertise itself by painting the vehicle with Coca-
Cola symbol.
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17. Sales Promotion Strategies
A. Consumer promotions
Distribution of free coca cola-
Coca-Cola provides free sample of coca cola to people to increase the
consumption of it. They do it either by distribution of free coupons or as a surprise
gift under the cork of the bottle.
In 1887 coupons were first used to promote Coca‑Cola. This created a huge
roar and within few days coca cola became popular
Recently the coca cola company during the IPL 4 promoted their product
through the “Brrr..” promotion campaign where it gave its consumers a bottle
of coca cola if they get “Brr…” sign under the cork
Distribution of Flicker card and signature ball or bat –
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18. During the 1999 cricket world cup flicker cards of Sourav Ganguly hitting
Sahid Afridi a six and Javagal Srinath doing a clean bold or a signature mini bat by
Sourav Ganguly or signature ball by Javagal Srinath was given if a consumer
returned back few coca cola labels to the retailer
Distributing placard, caps, etc. during match-
Coca-Cola distributes placards, caps, etc. to the spectators outside the
stadium just before a match starts and thus creates a sporting mood among the
spectators. These placards/caps are sometimes used by the spectators to save
themselves from direct sunrays during the match.
B. Trade Promotion
Additional bottle(s) per crate-
The retailer instead of case/trade discount is given 1/2/3 bottles extra with
each case of coca cola purchased. Thus the company pushes the retailer to
purchase more of coca cola and stock it instead of purchasing its competitors
product.
Providing with display refrigerator-
The company provides the retailer a refrigerator at a discounted price if it is
able to purchase a certain amount of crates within a stipulated time.
Providing Subsidy to the distributor to purchase distribution vehicle-
In order to distribute coca cola the distributors required distribution vehicles.
But the costs are huge. So the company sometimes uses to help the distributor
through partial financing.
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19. Distribution of T-shirt-
Free T-shirts were given to the salesmen to promote coca cola. And the
salesmen are normally hired as per time basis during any particular occasion or
campaign. So the salesmen get a t-shirt along with money as per day basis.
Display-
The company gives cash discount to the retailers for displaying the product in
proper coca cola racks. Both the company and the retailer gets benefit from the
racks as it provides a temporary store display. In April 2011 the company came out
with fully recyclable coca cola racks.
Contests-
Coca-Cola provided its retailers with gifts if they are able to meet the target of
selling a desired amount of crates in a given time.
Similarly it provides its distributors with cash dicount of Re 1/crate if they were
able to meet the target of selling a desired amount of crates in a given time.
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20. SEGMENTATION STRATEGY
Coca cola serves its products using mass marketing technique, which
obviously falls in undifferentiated marketing, and undifferentiated marketing means
no segmentation, but there are minor factors on which we can say that the coke
segments its products and then targets the customers somehow. These factors are
as follows.
GEOGRAPHIC SEGMENTATION
Coke segments its products country wise and region wise, here the most
important thing is the taste and the quality, it varies according to the taste and the
income level of the people in that country, and i.e. Third world counties are given low
quality taste. Coca Cola Company tries to satisfy the needs of a whole line of
different people. They have drinks that target different, age groups, ethnic groups,
sexes, lifestyles, etc.There are some of the different brands:
Minute Maid
Minute Maid targets kids and adults, ages 1-10 and 40+. This drink is
conveniently packaged to take with you on the go anywhere. The health check is
part of the reason for the wide target market, parents want their kids to be healthy
and so knowing that this product is accepted by such a well known
respected company pleases the parents and gives them a sense of relief.
Coca Cola
The Coca Cola drink is by far there most successful drink. It is very popular
among many different nations. It is a soft drink. Because of the huge demand for the
coca cola drink, and the trend towards healthier lifestyles coca and begun to produce
spin-offs of the coca cola product. They have made drinks such as coca cola zero,
coca cola diet, coca cola C2, coca cola with lime etc. By having all these different
drinks with the same basic taste they are able to target a much bigger market. Due
to the large success of the drinks coca cola is in demand worldwide. As such the
Coca Cola brand is sold in most countries in the world.
Coca Cola Zero
This drink is specifically targeted at teens that don‟t want the calories that come
with coke but want to same great taste. This Product is sweetened with aspartame.
Coca Cola Diet
The diet drinks are targeted at adults of ages 30-50, who are health conscious
but still love the great taste of coke. This drink is sugar less.
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21. Sprite
This is a soft drink that has many different target markets. This product has a
different taste then coke all together and is not as popular but it is still a very popular
drink. Like coke it also has a whole other line of drinks associated with it, such as
diet sprite, sprite zero, sprite with a hint of lime. This drink is also sold in many
places worldwide.
CLIMATIC
Weather is the second major factor in effecting the Coke‟s selling. In coke
marketing, main idea is to serve it cold, so we can say that, they focus more on hot
areas of the world, i.e. middle east etc and there sale increase in summer.
This is underdeveloped market so the coke‟s consumption in summers is 60%
and in winters is 40%.. It is a source of refreshment when a person is thirsty due to
the hot weather.
PepsiCo India, has entered the energy drinks sector with the launch of lehar
Gluco Plus in Maharastra, pre-empting Coke‟s proposed entry into this sector. Lehar
Gluco, priced at Rs. 5 (200 ml cup), has been developed in India keeping in mind
Indian taste preferences.
The ready-to-drink beverages sector in India is pegged at roughly Rs. 2000
crore, dominated by Coke, Pepsi, Amul and Nestle.
PepsiCo India was also gearing up to launch the new avatar of Lipton Ice Tea
(ready-to-drink beverage) in glass and PET bottles with its joint venture with
Hindustan Unilever (HUL).
Currently, PepsiCo was test marketing its relaunched Lipton Ice Tea in Delhi.
On the other hand, PepsiCo‟s arch rival, Coke, with its joint venture with Nestle, has
recently introduced its global ready-to-drink ice tea brand „Nestea‟ in Mumbai to start
with. In addition, Coke and PepsiCo were betting big on digital and high-voltage
television campaigns to woo new consumers.
Currently, PepsiCo India is fine-tuning its pricing and marketing strategy to
promote its new launch Lipton Tea in PET as well as glass bottles.
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22. ANALYSIS OF PRODUCT
Coca -Cola is the world‟s largest beverage company. The company is the
world‟s leading manufacturer, marketer and distributor of non-alcoholic beverage
concentrates and syrups.
It produces nearly 400 beverage brands. The company makes and distributes
soda, water, fruit juice, teas and energy drinks.
Though the world‟s largest beverage distribution system, consumers in more
than 200 countries drink the company‟s beverages at a rate exceeding 1.5 billion
servings per day.
Major product includes:-
Coca-Cola
Diet Coke
Sprite
Minute Maid (Pulpy orange and Nimbu fresh)
Fanta
Limca
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23. Maaza
Nestea
Kinley water
Kinley soda
Burn
Ingredients of Coke
 Carbonated water
 Sugar (sucrose or high-fructose corn syrup depending on country of origin)
 Caffeine
 Phosphoric acid
 Caramel colour (E150d)
 Natural flavouring
A can of Coke (12 fl ounces/355 ml) has 39 grams of carbohydrates (all from
sugar, approximately 10 teaspoons),50 mg of sodium, 0 grams fat, 0 grams
potassium, and 140 calories.
SWOT ANALYSIS
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24.  STRENGTHS
• Coca-Cola has a worldwide market
• Coca-Cola has a good product portfolio.
• It is the market leader in soft drink industry.
• Strong marketing and advertising
• Coca Cola was the first commercial sponsor of Olympic Games and it has been
sponsoring the FIFA and cricket world cup events.
• Coca Cola has been featured in movies such as The Coca Cola Kid; God must be
crazy and others which were huge hits.
• The taste of Coca-Cola is admired all over the world.
• Strong Financial reserves and returns
 WEAKNESSES
Customers are not being able to differentiate among few brands such as Coca
Cola Zero and Diet Coke
It highly relies on the product Coca-Cola
Supply of most of the product under Coca-Cola is restricted to few countries
 OPPORTUNITIES
Growing demand for packaged drinking water
People becoming brand conscious
Can launch other Coca-Cola variants in the untapped countries.
 THREATS
Intense competition in the beverage market
People becoming health conscious
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25. Generic Competition
PEPSICO
"The Choice of a New Generation."
Pepsi gives tough fight to Coca-Cola with almost similar investment,
advertisement strategies and products.
It provides carbonated drinks, fruit drinks and packaged drinking water.
It also has a snack product line including Lays, Cheetos and Quaker oats.
COKE PEPSI
 Market leader  Market challenger
 Govt. Patronage in world war-II  Initial ups and down
 Larger global presence  Good presence in few countries
The company‟s product includes Pepsi, Mountain Dew, Tropicana juice,
Aquafina water, Lipton ready to drink tea and Slice.
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26. Pepsi and Coca-Cola hold together, a market share of 95% out of which
60.80% is held by Coca-Cola and the rest belongs to Pepsi.
Market Share of Soft Drinks
Cocacola
PepsiCo
others
THUMS UP
“Taste the thunder”
Strong cola taste
Exciting personality
It is a leading carbonated soft drink and most trusted brand in India.
Thums up was introduced by the Chauhan brothers, Ramesh and Prakash,
in 1977
Known for strong, fizzy taste and its confident, mature and uniquely
masculine attitude
1993, when Coke entered India, Thums Up had a 36 per cent market share
versus 26 per cent for Pepsi
In the same year Coke bought Thums up
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27. Strategies adopted over time by the brand to
tackle competition or prime market expansion
From the very beginning, Coca-Cola understood the importance of branding
and creation of a distinct personality. Its catchy, well liked slogans “the real thing”
(1942), “things go better” (1963), “Coke is it” (1982), etc. linked that personality to the
core value of each generation and established Coke as the authentic and trusted
refreshment of choice across the decades and around the globe.
International Expansion
Coca-Cola‟s 1st International bottling plants opened in 1906 in Canada, Cuba and
Panama. By the end of 1920s Coca-Cola was bottled in 27 countries. Inspite of this
reach, volume was low, quality inconsistent and effective advertisement was a
challenge with language. Former CEO Robert Woodruff suggested to use local
bottles, caps, machinery, trucks, etc. to gain local confidence. Coca-Cola continued
to work for over 80 years on this phenomenon to make coke available “in arms reach
of desire”.
During the 2nd World War, Woodruff made a statement that every man in
uniform gets a bottle of Coca-cola for 5 cents. As a result of Coke‟s status as a
military supplier, coca-cola was expected from sugar rationing and also received
Government subsidies to build bottling plants around the world to serve World War II
troop. This also made Coke as a energy drink and moreover his market share
increased at a rapid rate.
COKE IN INDIA
Coke returned to India after 16 years after it was pushed out of the country in
1977 by Janta Party Government. Coca-Cola re-entered in 1993, cementing its
presence by acquisition of local popular Indian brands including Thumpsup (the most
trusted brand in India). But by this time Pepsi (Coke‟s biggest competitor) had
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28. already gained the precious early experience with the Indian market. Though Coke
benefited from Pepsi, creating demand and developing the soft drink market, Pepsi
gave Coke a disadvantage in the mind of the consumers. Pepsi appealed the youth
of India and Coke approached the market selling an “American way of life” which
failed to resonate as expected.
Therefore in 2001, Coca-Cola‟s CEO Douglas Draft set the directions for the
next generation of success for his global brand with a “Think local, act local” mantra.
In 2001, after almost a decade of lagging rival Pepsi in the region, Coke India re-
examined its approach and tried to plug the loop holes to gain leadership in the
Indian market.
Coca-Cola started their new strategy with two objectives:
● Brand positioning
● Marketing communication
Coca-cola through its survey understood that Urban India and Rural India
were two distinct markets on a variety of important dimension. The soft drinks
category‟s role in people‟s lives depends upon how Urban and Rural consumers
approach the market for refreshments.
Coca-cola had to work very hard in Rural market as the soft drink category
and individual brands were undeveloped. Their main task here was to broaden the
brand positioning, whereas in Urban market, both the category and the brand was
developed. Their main focus here was to differentiate its product from Pepsi and
other competitors through offering unique and compelling value.
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29. BRAND LOCALIZATION STRATEGY : Coca-cola divided India into categories-
India A and India B.
● India A: “LIFE HO TO AISI”
India A represented the metropolitan areas, who always celebrates the benefit
of their increasing social and economic freedoms. “Life ho to aisi” (life as it should
be) was the successful and relevant tagline found in Coca-cola advertising to this
audience.
● India B: “THANDA MATLAB COCA-COLA”
India B represented the rural market. India‟s Rural market always referred
refreshments as “thanda”. The advertising and promotion strategy pulled the
marketing plan together using local language and idiomatic expressions. “THANDA”
means cool, literally translating “thanda” to Coke, and sending a message “Coke
means refreshment”. For this Coca-cola even won advertisement of the year and
campaign of the year in 2003.
STRATEGY TO INCREASE SALES AND MARKET SHARE
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30. Soft drinks costing Rs 10 was a luxury item for a person who earns Rs 100
per day. So in an effort to make the price of Coke within reach of this section of the
society, Coke introduced a new 200 ml bottle at half the price i.e.,
Rs 5. This pricing strategy closed the gap between Coke and basic refreshments
like lemonade and tea, making Coke truly accessible for the first time. Coke
experienced 37% growth in Rural market and 24% growth in Urban market in the
year 2003.
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31. DISTRIBUTION STRATEGY
As on March 2000 Coca Cola have 13 bottling plants across India. The following
are the places where they are located (In order of completion):-
1. Hyderabad
2. Bangalore
3. Vijayawada
4. Goa
5. Delhi
6. Jaipur
7. Siliguri
8. Vizag
9. Delhi-Expansion
10. Orissa
11. Wada, Mumbai
12. Chennai
13. Pune
These bottling plants are authorised to prepare, packaged & sell the finished
product to authorised distributors who then distribute it to a chain a chain of more
700,000 retailers, supermarkets, restaurants & other business throughout the length
& breadth of the country. The same channel is used to transport the empty bottle of
Coca Cola from a consumer to the bottling plant.
BOTTLING PLANT
DISTRIBUTORS
RETAILERS
CONSUMERS
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32. In rural area the distribution network is slightly different from its urban
counterpart. The bottling plant transport the bottles to hubs then it goes to spokes
then to retailer before reaching in the hands of consumer.
BOTTLING PLANT
HUBS
SPOKES
RETAILERS
CONSUMERS
For refilling the empty bottle the distribution channel works similarly but in a
reverse mechanism.
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33. Future Direction of the Brand
Increasing the per capita consumption of its beverages
Coca-Cola continues its efforts at increasing the per capita consumption of its
beverages in the country.
India PCC currently is at 11 Servings a Year (up from 7 in 2001). This requires a
comprehensive activation of the Indian market by addressing acceptability,
affordability and availability of its products.
Expanding its distribution networks
The company had also decided to expand its retail network by 18 per cent during
the financial year2008-09 taking the total number of retailers to 1.3 million across the
country.
Leading the beverage revolution in India
The company continues to build on its foundations in India. While it continues to
maximise its carbonated soft drink potential through various pack, pricing, Occasion-
based strategies across town-classes in India.
Coca-Cola plans to become water neutral by 2011
Coca Cola, which has made water its focal point of social responsibility
programme, claimed to have already achieved groundwater neutrality by last year
through ground water recharge activities conducted at various parts of the country.
As well as by improving distribution of its water product i.e. Kinley.
Global water market by volume
Others Pepsico Coca-Cola Danone Nestle
5%
10%
7%
12%
66%
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34. Special product launch for Cricket lovers
Company has planned to launch a new design of coke‟s can after completion of
Sachin Tendulkar‟s 100th century.
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35. PHASE II
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36. HYPOTHESIS
Tagline “Thanda matlab Coca-Cola” is more influential than “Open happiness”
Coca-Cola is the first thing that comes to mind when we think of celebration.
Coca-Cola is not restricted to a specific age group.
JUSTIFICATION OF TAKING THE HYPOTHESIS
We are trying to identify which of the tag lines used by Cocacola (“Thanda
matlab Coca-Cola” or “Open happiness”) is more effective. Here we are
comparing former tagline vs. the later one.
There is a trend of providing welcome drink in most of the occasions and we
believe Coca-Cola is the most preferable among all welcome drinks.
We are trying to infer whether target market of Coca-Cola is restricted to a
specific age group (Pepsi relates itself to “youngistan” and Thums up relates
itself to “Strong man”)
LIST OF INFORMATION REQUIRED TO BE COLLECTED
FROM THE RESEARCH
Level of recall of both the taglines i.e. “Thanda matlab Coca-Cola” and “Open
happiness”. (Based on this we can conclude hypothesis 1).
Level of effectiveness of both the taglines i.e. “Thanda matlab Coca-Cola” and
“Open happiness”. (Based on this we can conclude hypothesis 1).
Information on preference of drinks during celebrations. (Based on this
information we can conclude hypothesis 2).
Demographic information of the consumers of Coca-cola. (Based on the
representation of different age groups, we will conclude hypothesis 3).
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37. INSTRUMENT OF DATA COLLECTION
Face to face Survey
A Particular sample size is chosen and Questionnaires are distributed to understand
the perception of consumers about the product.
Online Survey
In this technique a survey is conducted online by uploading the questionnaire on the
internet which enables to capture a versatile sample.. In this we obtain information
by receiving responses either by mail or through social networking site. It is used
when there is geographical constraint. Internet is a platform with variety of users of
different age group, so it will be beneficial for us as want sample consisting of
different age group.
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38. QUESTIONNAIRE
1. Do you consume Coca-Cola? (Hypothesis 3)
Yes
No
2. If yes, how often do you consume Coca-Cola? (you can tick multiple options)
(Hypothesis 2)
a. Daily / Regularly
b. In parties and other such occasions
c. Rarely
3. Which tag line of Coca-Cola do you recall the most? (Hypothesis 1)
4. How much the taglines given below connect itself with Coca-Cola? (Rate on a
scale of 1 to 5. 1 being the lowest and 5 being the highest (Hypothesis 1)
a. Thanda matlab Cocacola
1.__ 2.__ 3.__ 4.__ 5. __
b. Open happiness
1.__ 2.__ 3.__ 4.__ 5.__
5. a. Could you relate Coca-Cola with any of the happy moment of your life?
(Hypothesis 2)
Yes
No
b. If yes specify: ………………………………………………………………...
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39. 6. Among the following which one will you prefer as welcome drink. (Hypothesis
2)
Cold drinks
Blossoms
Mock-tails
Others (please specify)..........................................................
7. If cold drink which among the following, will you prefer as welcome drink
(Hypothesis 2)
Coca-Cola
Pepsi
Thumps up
Sprite
Fanta
7 Up
Miranda
8. Coca-Cola is a drink Consumed by people of all age group (Hypothesis 3)
Strongly Agree
Agree
Neither agree nor disagree
Disagree
Strongly Disagree
Name:
Age:
12-20
21-30
31-40
41 above
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40. SAMPLE SIZE AND SAMPLING PLAN
Sample Size : 150-200
Sample size of 150-200 people will represent the wide variety of Coca-Cola‟s
consumer.
Sampling plan :
An age group of 12 and above is chosen, as they are the consumers of Coca-Cola.
This sample is chosen by Convenience method of sampling.
Convenience sampling is a non-probability sampling technique where
subjects are selected because of their convenient accessibility and proximity to the
researcher.
METHODS OF DATA ANALYSIS –
Rating scale (Question 4)
Rating scale will help us to elicit both qualitative as well as quantitative data.
Graphical representation ( Question 1,2,3,5 6,7)
Graphical representation consists of Pie chart and Histogram. It is an analytical
model that provides a visual picture of relationship between variables. This will help
to represent data in a systematic and user friendly manner
Likert Scale (Question 8)
It is a psychometric scale commonly used in questionnaire and is the most
widely used scale in survey research, such that the term is often used
interchangeably with rating scale. When responding to a Likert questionnaire
item, respondents specify their level of agreement or disagreement on a
symmetric agrees-disagree scale for a series of statements. We are using
Likert scale as it is easy to analyze, easy to collect data and is quick.
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41. .
PHASE III
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42. PRIMARY RESEARCH
1. Do you consume Coca-Cola? (Hypothesis 3)
This question was asked to understand whether people of sample consume
Coca-Cola. This will help us to prove Hypothesis 3.
Do you consume Coca-Cola?
Yes
89%
No
11%
From the pie chart given above, we can easily understand that 89% of the people
have consumed Coca-Cola.
2. If yes, how often do you consume Coca-Cola? (you can tick
multiple options) (Hypothesis 2)
This question helped us to understand whether consumption of Coca-cola by the
people is impulsive or supported by a special occasion. This will help us to prove
hypothesis 2.
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43. How often you consume Coca-Cola?
59.0
60
37.2
50
40 23.1
30
20
10
0
Daily/Regularly In Parties and Other Rarely
Such Occasions
Note: People has selected more than one check box so percentage may add
upto more than 100
From the above given bar diagram, it is clear that people invariably consume Coca-
Cola during parties and occasions. (59%)
3. Which tag line of Coca-Cola do you recall the most?
(Hypothesis 1)
This question was an open ended question. It was done to infer which tagline
created the biggest impression in consumer‟s mind. This will help us to prove
hypothesis 1.
Tag line Recall
80
70 67.4
60
50
40
30
20 17.1
9.1
10 2.9 3.4
0
Thanda Matlab Open Happiness Jo Chahe Ho Jaye Others Cannot Recall
Coca Cola Coca Cola Enjoy
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44. From the above bar diagram, it is clear that “Thanda matlab Cola-Cola” is
most recalled tagline by the sample. (68%)
4. How much the taglines given below connect itself with Coca-
Cola? (Rate on a scale of 1 to 5. 1 being the lowest and 5
being the highest (Hypothesis 1)
This question was asked to know which tagline i.e.(Thanda Matlab Coca-Cola
or Open Happiness)connected itself with the brand in the minds of the
consumers. This will help us to prove hypothesis 1.
a. Thanda matlab Cocacola
How much the taglines given below
connect itself with Coca-Cola? [Thanda
Matlab Coca-Cola]
37.1
26.9
16.6
9.1 10.3
1 2 3 4 5
Here we have used Rating scale and found a large sum of people have
rated “Thanda matlab Coca-Cola” as the most connected tagline with the brand.
b. Open happiness
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45. How much the taglines given below connect
itself with Coca-Cola? [Open Happiness]
28.0
25.1
18.9 18.9
9.1
1 2 3 4 5
Here we have used Rating scale and found that the people were not able to connect
with the tagline ”Open happiness”, as responses are widely scattered.
5. a. Could you relate Coca-Cola with any of the happy moment
of your life? (Hypothesis 2)
As the brand claims that it is your partner during celebration, we want to know that
does the consumer also agree with this claim. This will help us to prove hypothesis
2.
Could you relate Coca-Cola with any
of the happy moment of your life?
No
70% Yes
30%
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46. From the above pie chart, it is clear that people are not able to connect Coca-Cola
with happy moment of their life as claimed by the company.
c. If yes specify:.............
Here we have found out the moments where people have connected their
happy moments with Coca-Cola. (30% of the population)
Coca-Cola and Happy Moments
After Exam
10%
Others
17%
Friends
Family 27%
19%
Party Partners
15% 12%
Here pie chart shows different type of happy moments celebrated with Coca-Cola.
6. Among the following which one will you prefer as welcome
drink. (Hypothesis 2)
This question checks out preference of drink for the guests by the sample people.
This will help us to prove hypothesis 2.
Among the following which one will you
prefer as welcome drink?
66.9
27.4
24.0
9.1
Cold drink Blossoms Mocktails Others
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47. Note: People have selected more than one checkbox, so
percentages may add up to more than 100%
From the above bar graph, we found out that Cold drink is the most preferred
drink for the guests.(67%)
7. If cold drink which among the following, will you prefer as
welcome drink (Hypothesis 2)
This question was asked to find out which cold drink people prefer in serving their
guest
Preferred Cold Drink
35
30.9
30
25.1
25 Coca Cola
21.1
20 7up
Fanta
15
10.3 Mirandaa
10 6.3
Pepsi
5 3.4 2.9
Sprite
0
Thums up
From the above bar diagram it is clear that sample people has preferred Coca-Cola
among different cold drink as welcome drink. (31%)
8. Coca-Cola is a drink Consumed by people of all age group
(Hypothesis 3)
From this question we wanted to find what people think about consumption of
Coca-cola by different age group. For this we have taken Likert scale, which will
help us to find views of different people.
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48. Cocacola is consumed by all age group
2%
6% 18%
21%
Strongly Agree
Agree
Neither agree nor disagree
Disagree
53%
Strongly Disagree
It is clear from the above pie chart that people have chosen “Agree” and “Strongly
Agree” for the given question. (53% + 18% = 71%)
Thus it proves that people agree for the fact that Coca-Cola is consumed by all
age group.
9. Age group
Here analysis of age of the sample people is done for proving hypothesis 3.
In questionnaire people were asked to give information about their age, and
analysis is done using that data.
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49. Age group of sample
12-20 21-30 31-40 41 above
18% 14%
14%
54%
Above pie chart shows age group of sample size.
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50. NET TAKEAWAY
HYPOTHESIS 1
Our first hypothesis was Tagline “Thanda matlab Coca-Cola” is more influential
than “Open happiness”. From the inference drawn from question no 3 and 4,we
have concluded that “Thanda matlab Coca-cola” is indeed more influential tagline
than “Open happiness” . Hence hypothesis 1 is correctly proved.
HYPOTHESIS 2
Our second hypothesis was Coca-Cola is the first thing that comes to mind when
we think of celebration. From the inference drawn from question no 2,6 and 7, we
have concluded that Coca-Cola is an integral part of celebrations. But from the
inference drawn from question no 5, we can‟t conclusively say that the above
statement is true. Hence hypothesis 2 is proved partly correct.
HYPOTHESIS 3
Our third hypothesis was Coca-Cola is not restricted to a specific age group. From
the inference drawn from question no 1 and 8, along with analysis done on the age
group of sample; we conclusively say that Coca-Cola is not restricted to a specific
age group. Hence hypothesis 3 is correctly proved.
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51. Bibliography
1. www.coca-cola.com
2. www.coca-colaindia.com
3. BBC World
4. Mahananda Stores, Siliguri ( Retailer)
5. Mr.Jyotririndra Pal,J.S Distributor, Siliguri (Authorised Distributor)
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