Sales & Promotion at Coca Cola

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                             A                                               

PROJECT REPORT
ON
SALES & PROMOTION

AT

COCA COLA

(Submitted in partial fulfillment of

The requirement for the award of the)

MASTER OF BUSINESS ADMINISTRATION


Submitted by

(2016-2018)

Under supervision of

SUMITTED TO

Department of Business Administration


KASHIBAI NAVALE COLLEGE OF ENGINEERING

(Affiliated to SSUP,Maharashtra)

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DECLARATION

I hereby declare that the project entitled “SALES & PROMOTION” submitted by me, in 

partial   fulfillment   of   the   requirements   for   award   of   the   degree   of   MBA   at   KASHIBAI

NAVALE COLLEGE OF ENGINEERING, affiliated to SSUP,Maharashtra, is work turned

out by me and 

has not been submitted to any other University/Institute for award of any degree/diploma.

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ACKNOWLEDGEMENT

I take this opportunity to extend my profound thanks and deep sense of gratitude to the

authorities of Coca Cola , for giving me an opportunity to undertake this project work in their

esteemed organization. I profusely thank Mr. Thirupathi Reddy, Manager Finance, in particular

for guiding me and helping me in successful completion of the project. I would also like to thank

all the employees of the organization.

I would like to express our immense gratitude towards our institution  KASHIBAI NAVALE

COLLEGE OF ENGINEERING,SSUP,Maharashtra, which created a great platform to

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attain profound technical skills in the field of MBA, thereby fulfilling our most cherished goal. I

am very much thankful to our internal guide Mr.Deepak, Professor for extending their

cooperation in completion of project.

I am also thankful to all those who have incidentally helped me, through their valued

guidance, co­operation and unstinted support during the course of my project.

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INDEX
PAGE
S.No: CONTENTS NO.
CHAPTER­1
INTRODUCTION
Scope of the Study
Objectives of the Study
Methodology of the Study
Limitations of the Study
CHAPTER­2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER­3

THEORETICAL FRAMEWORK

CHAPTER­4
DATA   ANALYSIS   AND
INTERPRETATION
CHAPTER­5
FINDINGS
CONCLUSION
SUGGESTION
BIBLIOGRAPHY

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CHAPTER 1

INTRODUCTION

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INTRODUCTION TO THE PROJECT

This chapter explains about the background and states the objectives of the project. The
purpose of the study is to determine the impact of promotional activity for selling Coca Cola
products in Pune city only.

Promotion is comprehensive terms, and covers the entire gamut of advertising, publicity, public
relations, personal selling and sales promotion. Sales promotion is thus a part of promotion and
is restricted to direct inducement on a short term basis services.

The same promotional strategy was applied by Coca Cola to promote their products and
boost up its sales. The Coca Cola performed promotional activities like canopy, road shows,
EPP, broacher distribution, etc.

In the present competitive world if any business organization has to survive it needs to keep an
eye on various forces operating in the market. More over competitors constantly try to win over
others. In this scenario, every business organization needs to monitor the changes taking place
in the market so that they are not caught. Market research is an efficiency tool in the hands of a
marketer that helps him to take changes taking place in the market.

SCOPE OF THE PROJECT

 The scope of the study is limited only to the Pune city.

 The main purpose of survey is to throw light towards the promotional activities on
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the sale of the product.

 The promotional activity was restricted only for Pune.

 The activities were carried out only at show rooms, road shows and residential areas

IMPORTANCE OF THE STUDY

This study is important in the sense as we can measure the position of the product after analyzing
the data that we have with us. This study also gives an experience to the management student
who is doing the research as it is the base of marketing.

OBJECTIVES

1. To study the marketing strategies of Coca Cola .

2. To find out the effectiveness of promotional strategies of Coca Cola .

3. To ascertain the impact of promotional activity on purchase decision.

4. To find out the measures to boost up sales.

5. To conduct promotional activity to boost sales of Coca Cola .

6. To analyze the awareness among public about the Coca Cola products.

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7. To find out the reasons for low sales of the products.

8. To conduct promotional activity in various places like shopping malls, residential areas,
corporate etc.

9. To increase the prescription rate among the respondents by using promotional tools.

RESEARCH METHODOLOGY

DEFINITION:

Research refers to „a search for knowledge‟. It can be defined as a scientific and systematic
search for pertinent information on a specific topic.

Research comprises defining and redefining problems, formulating hypothesis or suggested


solutions; collecting, organizing and evaluating data; making deduction and reaching
conclusions; and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis – Clifford Wood.

RESEARCH METHODOLOGY

It is a way to systematically solve the research problem. It may be understood as science of


studying how research is done scientifically. In it we study the various steps that are generally
adopted by the researcher in studying his research problem along with the logic behind them. In

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general methodology is an optional framework within which the facts are placed so that the
meaning may be seen more clearly. The sources of data shown that designing of a research plan
calls for decision on the data sources are research approaches (primary and secondary data)
research instruments (observation survey experiment) sampling plan and contact methods
(personal interviews).

RESEARCH DESIGN

Research design is a plan structured and strategies of investigation. It is the arrangement of


condition and analysis of data in a manner to combine relevance to the research purpose with
economy in procedure.

 In order to achieve the objective it was necessary to talk to the customers and public to
draws the conclusions regarding the objective.

 For visiting the customers and publics to collect the relevant information; a
questionnaire has to be designed. The questionnaire was designed in such a manner to
achieve the objective of the research.

 The sample size taken is 100 customers and publics.


TYPE OF RESEARCH

In this project Descriptive Research has been used.

Descriptive Research:

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This is kind of research structure which is concerned with describing the characteristics
of the problem. In this way the main purpose of such a research design is to present a
descriptive picture about the marketing problem on the basis of actual facts. For this it is
important to obtain the complete and actual information about the subjects.

NATURE OF RESEARCH

Quantitative type of research has been used. As all the data was based on numerical figures
obtained in the survey.

TYPE OF QUESTIONS

The questions were self-administered, with a view to obtain maximum information from the

respondent that is why the questions were straightforward.

TYPE OF QUESTIONNAIRE

The entire questionnaire was standardized and formalized.

TYPE OF ANALYSIS

As all the data found in the survey is totally numerically so the type of analysis was statistical.

SOURCE OF DATA

 PRIMARY DATA

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The data which is collected fresh and for the first time and thus happen to be the
original one characteristic is called as the primary data.

 SECONDARY DATA

The data which is already collected by someone else and which have been passed
through the statistical process is known as the secondary data.

METHODS OF COLLECTING PRIMARY DATA

Interview Method

In this project I have taken the questionnaire method for collecting necessary information. In
this method a questionnaire is given to the person concerned with question to answers the
question and return the questionnaire. A questionnaire consists of number of question printed in
a definite order on a form or a set of form.

SELECTION OF THE SAMPLE/SAMPLING PLAN

This is one of the most important steps of a research design procedure. Generally in most of
the marketing studies on sample or most of the sub group of the total population pertaining to
the subject is included on the place of the universe.

The following things are primarily considered in the sample:-

 Sample Size

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The sample size of the population was 100 respondents.

 Sample Population

A survey of people who either own or plan to purchase laptop and on located in
Pune city only.

 Sample Extent

Viman Nagar


Vadgaon sheri

 Sampling Methods

The sampling method for the survey was random sampling. Random sampling suggest
away of sample selection where in any item of the population is likely to be selected in
a sample as any other item it means that all items of the population have equal
probability of being selected in the sample.

SECONDARY DATA COLLECTION

The report mainly consists of a data from the primary source gathered the schedule of
questions. Questionnaire is the formal tool of asking questions directly from respondents by
which questions are asked. Information about the product is taken from various sources such as
websites, newspapers etc.

The role and mechanics of promotion


Promotions are an extremely valuable tool for the marketing of goods. Like all other tools,
promotions can make a valuable contribution to marketing.

Promotion function: The function of promotion is to accelerate action stated by other marketing
activities. Promotion acts as a catalyst to accelerate action, primarily on the part of the consumer.
It supplements, but is not a substitute for, advertising and selling efforts.
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Promotion accelerates action by changing the price – value relationship of the brand
Every product has an established value in the minds of the consumer. This is what the consumer
is normally willing to expend (in money) for what he gets, or thinks be gets,
when he buys the product.

Promotion changes this price-value relationship to the point where the individual is stimulated to
take a desired action. It does this in most cases either by lowering the price
or by increasing the value of the product or both
When to use promotion:
The need for promotion varies because
1. A brand’s quality is inferior to competition;
2. A brand’s advertising is not as persuasive as competitive copy; or
3. A new brand is being introduced
Promotion’s role in the life cycle of a brand
At each stage in a brand’s life cycle a different degree of promotional
emphasis is required.

New Product: A new product can usually profit from substantial promotion support – if the
product, the advertising, distribution and price are right.
The promotion can truly perform its function of accelerating trial and purchase of a brand whose
value has not yet been fully established in the minds of all consumers. Although good advertising
on a new brand will persuade many consumers to try the brand, it is not likely to persuade every
logical prospect to take immediate action. Though the advertising does not quickly move to
action require an extra incentive, such as a free sample or coupon or some other device that
increases the value of the brand, or lowers its price, to the point where the prospect decides to
buy it. If the product is of good quality, promotion thus helps to establish its value quickly in the
minds of more people.

Growing Brand: There are indications, incidentally, that many new brands (but not all) reach
their share-of-market peak within six months to a year after the completion of their introduction.
This leads to the conclusion that a brand of proven product and advertising copy superiority

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would be well advised to meet maximum trial during the introductory period by spending heavily
in the advertising media and on the promotional devices that are most effective in reaching the
brand’s best longterm prospective consumers. Investment at the highest practicable level in
effective advertising and promotion during the introductory stage, therefore – by quickly
achieving a high franchise level – can establish a business that is less vulnerable to competition
and that returns higher level of
profit in the following years.

Stable Brand: An established, growing brand generally requires minimal promotion support,
usually of a selective nature. The product and its advertising are still equal to or better than
competition. A high proportion of potential customers have tried the brand
And many have become more or less regular users.
In such a healthy situation, the job that promotion has to do usually is much narrower and more
specialized. It can be used for such specific purposes as improving distribution on large sizes,
attracting new users from fringe groups or areas where usage levels are below potential, or
increasing the consumption among present users. Total promotion expenditures, however, can be
cut back to levels that generate optimum profits – so long as the brand continues to represent
superior value for the price.
Declining Brand: A mature, stable brand may need increased promotional support as
competition begins to match it in product quality and in the persuasiveness of its advertising
copy, or as the brand reaches its natural franchise level. When this happens,
Growth ceases, sales and share level off.

MAJOR TYPES OF CUSTOMER PROMOTIONS

1.Sampling: Distribution of free special or regular size package to consumers


2.Couponing: Distribution of certificates with a stated monetary or merchandize value which the
consumer redeems through a retailer towards the purchase of the specified item.

3. Demonstrations: An illustration or demonstration of how a product is prepared and/or


used, frequently involving consumer tasting of food products and usually involving the
presence of a home economist or other trained representative.

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4. Price packs: Offers to consumers of savings off the regular price of a product, flagged on
the label. Ex: A reduced price packs.

5. Free trials: Inviting customers for free trials of products without cost.

CHAPTER 2

INDUSTRY PROFILE
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COMPANY PROFILE

A BRIEF INSIGHT - THE FMCG INDUSTRY IN INDIA

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are
products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players had
been facing severe problems on account of increased competition from small and regional
players and from slow growth across its various product categories. As a result, most of the
companies were forced to revamp their product, marketing, distribution and customer service
strategies to strengthen their position in the market.

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By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly.
With the liberalization and growth of the Indian economy, the Indian customer witnessed an
increasing exposure to new domestic and foreign products through different media, such as
television and the Internet. Apart from this, social changes such as increase in the number of
nuclear families and the growing number of working couples resulting in increased spending
power also contributed to the increase in the Indian consumers' personal consumption. The
realization of the customer's growing awareness and the need to meet changing requirements and
preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space,
rapid urbanization, and qualified manpower also boosted the growth of the organized retailing
sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the
FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in the
zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will not
put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the
South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4
million jobs. (Source: HCCBPL, Monthly Circular)

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A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA

In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.

BEVERAGES

ALCOHOLIC NON-
ALCOHOLIC

CARBONAT NON-
ED CARBONAT
ED

COLA NON-COLA NON-COLA

Fig 2.0 BEVERAGES IN INDIA

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:

 Alcoholic, non-alcoholic and sports beverages.


 Natural and Synthetic beverages.
 In-home consumption and out of home on premises consumption.
 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
 Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.

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If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to
address this issue so as to encourage regular consumption as well as and to make the industry
more affordable.

Four strong strategic elements to increase consumption of the products of the beverage industry
in India are:

 The quality and the consistency of beverages needs to be enhanced so that consumers are
satisfied and they enjoy consuming beverages.
 The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
 Consumer education is a must to bring out benefits of beverage consumption whether in
terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
 The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity,
for brand and sales growth in turn to add up to the overall growth of the food and
beverage industry in the economy.

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COMPANY PROFILE

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COCA COLA INTERNATIONAL

HISTORY:

Coca-Cola Enterprises, established in 1886, is a young company by the standards of

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

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

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

Dr. John Pemberton, began to produce

Coca-Cola syrup for sale in fountain drinks. However the bottling business began in

1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B.

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Whitehead,

secured the exclusive rights to bottle and sell Coca-Cola for most of the United

States from The Coca-Cola Company.The Coca-Cola bottling system continued to

operate as independent, local businesses until the early 1980s when bottling

franchises began to consolidate. In 1986, The Coca-Cola Company merged some of

its company-owned operations with two large ownership groups that were for sale,

the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to

form Coca-Cola Enterprises Inc. The Company offered its stock to the public on

November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis,

total unit case sales were 880,000 in 1986.In December 1991, a merger between

Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston)

created a larger, stronger Company, again helping accelerate bottler consolidation.

As part of the merger, the senior management team of Johnston assumed

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responsibility for managing the Company, and began a dramatic, successful

restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues

were $5 billion

The Coca-Cola Company is the world’s largest beverage company. They operate in

more than 200 countries & markets more than 2800 beverage products. Head

quartered at Atlanta, Georgia, they employ approximately 90500 employees all over

the world. It is often referred to simply as Coke or (in European and American

countries) as Cola or Pop.

MARKET POSITIONING

Product Range

The total range of Coca Cola Company in Pakistan includes:

· Coke.

· Sprite.

· Fanta.

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· Diet Coke.

And company offers their products in different bottle sizes these includes:

 SSRB (standers size returnable bottle)

 LRB (litter returnable bottle)

 NRB (no return bottle) or disposable bottle

 PET 1.5 (1.5 liter plastic bottle)

 CANS (tin pack 330 ml)

The Mission Statement of the Coca Cola Company

Our mission statement is to maximize share owner value over time.

In order to achieve this mission, we must create value for all the constraints we

serve, including our consumers, our customers, our bottlers, and our communities.

The Coca Cola Company creates value by executing comprehensive business strategy

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guided by six key beliefs:

1. Consumer demand drives everything we do.

2. Brand Coca Cola is the core of our business

3. We will serve consumers a broad selection of the nonalcoholic ready-to–

drink beverages they want to drink throughout the day.

4. We will be the best marketers in the world.

5. We will think and act locally.

6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand

our share of worldwide nonalcoholic ready to drink beverages sales, maximize

our long- term cash flows, and create economic value added by improving

economic profit.

The Coca Cola system has more than 16 million customers around the world that

sells or serves our products directly to consumers. We keenly focus on enhancing

value for these customers and helping them grow their beverage businesses. We

strive to understand each customer’s business and needs, whether that customer is a

sophisticated retailer in a developed market a kiosk owner in an emerging market.

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There are nearly 6 million people in the world who are potential consumers of our

company’s product. Ultimately, our success in achieving our mission depends on our

ability to satisfy more of their beverage consumption demands and our ability to

add value for customers. We achieve this when we place the right products in the

right markets at the right time

MARKET SHARE:

Being the biggest company in the soft drink industry, Coca Cola enjoys the

largest market share. This company controls about 59% of the world market.

The company is geographically vast and it is controlling it with great success. In

2002, the company grew their carbonated soft-drink business by nearly 250

million unit cases and generated record volumes. Because carbonated soft drinks

are the largest growth segment within the nonalcoholic ready-to-drink beverage

category measured by volume, that is why they are focusing more on this and

they are continually increasing the pace because they know that accelerating this

pace is crucial to their future success. Thus they are increasing their market day

by day.

This strategy has worked a lot and it has helped them to become the

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World’s leading Soft Drink Company. The global unit sale of the Coca Cola

Company is increasing from the last ten years. The data of the global unit sale of

the Coca Cola Company can be represented by following chart.

So there is positive growth in the market of the Coca Cola Company. There is a

worldwide volume increase by 4% with strong international growth of 5%. This is

only due to the innovative marketing programmers, which has deepened the

relationship of the customers and Coca Cola. The financial health and success of

their bottling partners is a critical component of The Coca -Cola Company's ability to

build and deliver leading brands.

In 2002, the company had worked with their bottlers to turn good intentions into

reality by improving the system economics. The results in 2002 reflect this steadily

improving and mutually constructive relationship between the Company and their

bottling partners. The main reason behind this relationship is to continue realizing

shared opportunities for growth, with closer coordination of operations including

customer relationships, logistics and production.

EXTERNAL MARKETING ENVIRONMENT (PEST ANALYSIS)

Political Analysis for Coca-Cola

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Non -alcoholic beverages fall within the food category under the FDA. The

government plays a role within the operation of manufacturing these products in

terms of regulations. There are potential fines set

by the government on companies if they do not meet a standard of laws.

The following are some of the factors that could cause Coca-Cola company's actual

results to differ materially from the expected results described in their underlying

company's forward statement:-

Changes in laws and regulations, including changes in accounting standards,

taxation requirements, (including tax rate changes, new tax laws and revised tax law

interpretations) and environmental laws in domestic or foreign jurisdictions.

Changes in the non-alcoholic business environment. These include, without

limitation, competitive product and pricing pressures and their ability to gain or

maintain share of sales in the global market as a result of action by competitors.

Political conditions, especially in international markets, including civil unrest,

government changes and restrictions on the ability to transfer capital across

borders.

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Political structure and legal considerations also have impinged on

Coco-Cola Company’s strategies. Governments of some Arab nations boycotted

Coca-Cola’s products due to a political dispute and discontented with the company

for maintaining distributors in Israel.

Economical Analysis

Being flexible and willing to change to satisfy consumers’ needs, has enabled Coca-

Cola to exploit the economies of scale that was gained by its global marketing and

at the same time making its products appeal to local taste, which these have earned

the company an enormous profits quarterly.

As Coca- Cola has expanded over the decades or even nearly a century, the

company has benefited from the various cultural insights and perspectives of the

societies in which business is done.

No doubt of the remarkable experience it has, it is still very committed to local

markets, to paying attention to what people from different cultures and

backgrounds like to drink, and where and how they like to drink it, to remain

competitive and to develop more new drinks to satisfy its markets.

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Now, the estimated brand equity of Coca-Cola is $84billion, market share of more

than 50 percent in beverage industry globally and about 70 percent of its income

comes from countries outside United States.

Every 10 seconds, 126,000 people in the whole world, choose to reach out for one

of The Coca- Cola Company brands, and it is the company’s mission to make that

choice exciting and satisfying, every single time.

Previously the U.S. economy was strong and nearly every part of it was growing and

doing well. However, things changed. Before the attacks on September 11, 2001, the

United States was starting to see the economy recover slightly and it is only just

recently that they achieved the economic levels. Consumers are now resuming their

normal habits, going to the malls, car shopping, and eating out at restaurants.

However, many are still handling their money cautiously. They believe that with lower

inflation still to come, consumers will recover their confidence over the next year. As

researching for new products would cost less the Coca-Cola Company will sell its

products for less and the people will spend as they would get cheap products from

Coca- cola.

Social Analysis for Coca-Cola

Foreign environment factors have influenced the Coca-Cola’s strategies in

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international marketing. Culture has a tremendous effect on people’s preferences

and perception. Language is one of the aspects of culture that marketers must take

care of, in term of translating product name, slogans and promotional messages so

as not to convey the wrong meaning. Coca-Cola did not look much into this aspect

when entering into the markets of countries like China and Taiwan as the literal

translation of Coca-Cola in Chinese characters mean, “bite the wax tadpole”.

Changes are necessary in international marketing for consumer’s

products, as it is important that the products suit one’s taste, preferences and

fulfill one’s needs. Coca- Cola has continued changing, improving and

developing new drinks to appeal to local tastes.

After discovering that Coke did not appeal as much to Japanese consumers,

Coca- Cola developed over 30 new drinks for the Japanese market, which

inclusive of Asian tea, English tea, coffee and fermented-milk drink.

In China, Coca-Cola has also begun the similar strategy of introducing beverages

developed for the taste buds of local market.

It launched a fruit juice drink called Tian Yu Di (Heaven and Earth) specifically for

the Chinese market with planning of introducing the market with a Chinese iced

tea and soy milk drink.

Many U.S. citizens are practicing healthier lifestyles. This has affected the non-

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alcoholic beverage industry in that many are switching to bottled water and diet

colas instead of beer and other alcoholic beverages. Also, time management has

increased and is at approximately 43% of all households. The need for bottled water

and other more convenient and healthy products are in important in the average

day-to-day life.

Consumers from the ages of 37 to 55 are also increasingly concerned with

nutrition. There is a large population of the age range known as the baby

boomers. Since many are reaching an older age in life they are becoming more

concerned with increasing their longevity. This will continue to affect the non-

alcoholic beverage industry by increasing the demand overall and in the healthier

beverages.

Technological Analysis for Coca-Cola

Some factors that cause company's actual results to differ materially from the

expected results are as follows:

The effectiveness of company's advertising, marketing and promotional programs.

The new Soft drinks of internet and television which use special effects for

advertising through media. They make some products look attractive. This helps in

selling of the products. This advertising makes the product attractive. This Soft
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drinks is being used in media to sell their products.

Introduction of cans and plastic bottles have increased sales for Coca-Cola as these

are easier to carry and you can bin them once they are used.

As the Soft drinks is getting advanced there has been introduction of new

machineries all the time. Due to introduction of this machineries the

production of the Coca-Cola company has increased tremendously then it was

few years ago

Coca-Cola has six factories in Britain which use the most state-of the-art drinks Soft

drinks to ensure top product quality and speedy delivery. Europe's largest soft

drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield

factory has the Soft drinks to produce cans of Coca- Cola faster than bullets from a

machine gun

MARKET SHARE BY AREA:

Coca Cola is the world-renowned soft drink and the company is currently operating

throughout the world. The world wide total is about 17.8 billion.

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The operation review according to the segments is as follows.

In Asian population, which is the satisfied customer of Coca Cola, is

approximately 3.2 billion and the average consumer enjoys close to two

servings of our products each month. Through an intense focus on Coca-

Cola, innovation and new beverages, the company has achieved volume

growth of 10 percent in 2002. With developing economies and populations,

this region has strong long- term potential, and the company is building an

exciting family of beverage brands in addition to expanding the popularity of

our core brands, led by Coca-Cola. In China, for example, sales of Coca-Cola

increased 6 percent. The total unit case sale of Coca Cola in Asia can be

shown by the following pie chart.

So the company is emphasizing more in this area and is trying to develop a

strategy, which can increase the growth of the consumption of Coca Cola by

the people of Asia. Among the countries of Asia, Japan has the highest

percentage, which is about 29%. Among others, Pakistan, India and

Bangladesh are those countries where the average consumption is increasing

day by day.

2002 basic and diluted net income per share includes the following charges:

$.24 per share after income taxes related to an organizational Realignment.

· $.19 per share after income taxes related to the Company's portion of charges

recorded by the investors of the company.

36
· $.16 per share after income taxes related to the impairment of certain

bottling, manufacturing and intangible assets.

· $.05 per share after income taxes related to the settlement terms of a

discrimination lawsuit.

· $.01 per share after income taxes related to incremental marketing expenses

in Central Europe.

These charges are partially offset by a gain of $.05 per share after income taxes

related to the merger of Coca- Cola Beverages plc and Hellenic Bottling Company

S.A. and $.04 per share after income taxes related to benefits from a tax rate

reduction in Germany and from favorable tax planning strategies.

DIVIDEND AND CASH INVESTMENT PLAN :

The Dividend and Cash Investment Plan permits share owners of record to reinvest

dividends from Company stock in shares of The Coca-Cola Company. The Plan

provides a convenient, economical and systematic method of acquiring additional

shares of our common stock. All share owners of record are eligible to participate.

Share owners also may purchase Company stock through voluntary cash investments

of up to $125,000 per year.

37
At year-end, 76 percent of the Company's share owners of record were participants

in the Plan. In 2002, share owners invested $36 million in dividends and $31 million

in cash in the Plan.

COMPANY STATISTICS:

The statistics of this company is impressive. Since it is operating through out the

world that is why the number of employees and the bottling equipments is highest

among the other bottling companies. There is a constant increase in every aspect

when we compare the statistics of 2001 and the statistics of 2002. This is because;

Coca Cola Company is increasing its volume day by day. The expansion of this

company, which shows the success of Coca Cola brands, results in the percentage

change in the statistics of the two years. EBITDA is the Earnings before interest,

taxes, depreciation, and amortization, and other non -operating items.

Net Debt is the Long-term debt plus current portion of long -term debt less

cash and marketable securities.

Equivalent Case or Unit Case is the physical case and fountain gallons

converted to a standard unit of measure defined as 24 eight-ounce servings or

192 ounces per equivalent case sold by Coca-Cola Enterprises.

38
PRODUCTS:

There are different brands of the Coca Cola Company, which are currently in use

throughout the world. This company not only deals in the carbonated drinks but

also other drinks. While launching its product, the marketing team considers the

culture of the country.

Major brands of coca cola

· Coke

· Sprite

· Fanta

· Diet coke

· Coke classic

The commitment of the company is to devote resources to water only in markets

where it expects profitable growth. This strategy has paid dividends. The company

39
has successfully applied it’s approach to brands in several key markets, including Ceil

in Mexico, Mori No

Mizudayori in Japan, Bonaqua in Russia and Kinley in India. Backed by a strong

network of bottling partners through out the United States, Dasani became the

nation's fastest-growing water brand. In Eurasia, the entire Turkuaz brand team

worked together to launch

Turkey's first purified water brand. This year, Coca-Cola Company also successfully

energized a major piece of its beverage strategy— water. By the end of 2001, it’s

bottled water volume exceeded 570 million unit cases, making it the second biggest

contributor to the growth of the company after carbonated soft drinks. Three of the

water brands, Dasani, Ciel and Bonaqua each achieved sales of over 100 million unit

cases for the year.

In 2001and 2002, the company has also made good progress in coffees and teas.

Beverage Partners Worldwide, the renewed and strengthened marketing partnership

with Nestlé S.A., began operations in 2001. This partnership combines Nestlé's

knowledge in life science, research and development with the expertise of Coca Cola

Company in brand building and distribution.

At the same time, the company grew Georgia coffee in Japan by 3 percent through

award-winning marketing in a category that was flat for the year. Also in Japan—

40
where The Coca-Cola Company is the leader in the total tea category, the second-

largest category in the non-alcoholic ready-to -drink segment—it launched Marocha

Green Tea. With sales of 46 million unit cases for the year, Marocha Green

Tea is the fastest-growing product in the fastest-growing category: green tea. The

popularity of Marocha is also recognized by the industry with a leading trade journal

naming Marocha the most popular new food and beverage product of the year.

Among the soft drinks Fanta and Sprite become successful along with the major

brand Coca Cola and Diet Coke. In key markets, the company has created new

packaging sizes to satisfy consumer demands.

Increasingly, Mexican families have lunch together at home. The average Mexican

household drinks two-and-a-half liters or more of soft drinks during that break,

while a two-liter bottle was the largest available package. So the company

introduced a convenient 2-½ liter bottle to select regions, contributing to the sale of

nearly 1.5 billion unit cases of Coca-Cola in Mexico this year. This larger bottle will

complete its nationwide rollout in 2002. In China, Coca-Cola is an integral part of

holiday celebrations and the family get- togethers that accompany such events.

Through an intense focus on Coca-Cola, innovation and new beverages, it has

achieved volume growth of 10 percent in 2001. In China, sales of Coca-Cola

increased by 6 percent. In the United States, recognizing that consumers often enjoy

41
their diet Coke with a slice of lemon, the company "bottled" the concept. The result

—diet Coke with lemon—contributed to volume growth of 4 percent for the

number-one diet.

Soft drink in North America: diet Coke. The company increased its two largest bottle

sizes during the 2001 holidays, and festival packaging helped drive a 6 percent

volume increase for Coca-Cola.

The packaging innovations do not just involve resizing. The company has also

responded to consumers' changing fashion styles with new bottles.

With brands such as Minute Maid, Hi- C, Simply Orange and Disney juices and juice

drinks in the United States, Qoo in Asia, Kapo in Latin America and Bibo in Africa.

This year, the company re-launched its global sports-drink business, investing in new

products, packaging, positioning and marketing.

The results speak for themselves: it’s global sports drinks, led by Powerade and

Aquarius, grew by 13 percent in 2002, nearly double the growth rate of the

worldwide sports-drink category. Revitalized in the United States, the company

introduced Powerade in nearly every major Western European market, including

Great Britain, Germany and Spain, as well as in Mexico and Latin America. The

company launched 27 products in 2001.

42
The commitment of the company to packaging innovation also resulted in new

initiatives for our fountain business, a channel through which many consumers enjoy

Coca - Cola. In the United States, the company developed Fountain, a total beverage

dispensing system that is more flexible and more reliable. Two years of research

resulted in a dispensing system that provides exceptional beverage quality, easy to

upgrade Soft drinks, brand and graphic customization and improved reliability.

43
CHAPTER­3
THEORETICAL FRAMEWORK

THEORETICAL FRAMEWORK

PROMOTION
44
Basically promotion is an attempt to influence. More specifically, Promotion is the element in
an organization‟s marketing mix that serves to inform, persuade and remind the market of a
product and/or the organization selling it, in hopes of influencing the recipient‟s

feelings, beliefs, or behavior. Out of 4 P‟s of marketing i.e. product, price, place, and

promotion, the most important role is of 4th P i.e. promotion.

ROLE OF PROMOTION IN MARKETING

 Promotions help marketers to communicate information to potential customers.


This information could be about the product‟s Existence (Awareness), value and
benefits offered by products.

 A well designed promotion mix is extremely crucial for brand building and positioning.
In fact communication or promotional mix is at the centre stage in brand positioning
and Brand building activities.

 The promotional mix or marketing communication helps marketers to attract, persuade,


urge and remind customers of the company‟s brand.

 Effective promotions prove helpful in product differentiation and also help to counter
competition.

COMPONANTS OF PROMOTION

There are five components of promotions: Advertising, Sale promotion, Personal selling,
direct marketing, Public relations. Each has distinct features that determine in what situation it
will be most effective.

45
1. ADVERTISING:

“It is any paid form of non-personal presentation and promotion of ideas, goods, and services
by an identified sponsor”. The most familiar forms of advertisements are found in the
broadcast (TV and RADIO) and print (Newspaper and Magazines) media. However, there
are many other advertising alternatives, from direct mail to billboards and the telephone
directory to yellow pages. Advertising is often termed as pull strategy. In pull strategy the
goal is to get consumers to pull the product in the supply chain by demanding it.

MAJOR ADVERTISING DECISIONS

While setting up an advertising plan, following decisions are required to be taken.

 Identify the target audience

 Set the advertising objectives

 Determine the advertising budget

 Design the message

 Evaluate and select media

 Create an advertisement

 Measure the impact.

46
TYPES OF ADVERTISEMENT

MEDIUMS OF ADVERTISING

 Newspapers

 Television

 Radio

 Magazines

 Direct mail

 Outdoor advertisings.

2. SALES PROMOTION:

Just as Advertising is known as „Pull‟ strategy, Sales Promotion is known as „Push‟


strategy. This promotional technique can be defined as “short-time incentive to the
customer to buy a product”.

According to Philip kotler; “Sales Promotion consists of a diverse collection of incentives


tools, mostly short term designed to stimulate quicker or greater purchase of a particular
product or services by consumers or the trade”.

The free gifts-offers, discounts, coupons, lucky draws, etc., are some of the ways used in
sales promotion.

SALES PROMOTION TOOLS

47
 Consumer promotion:

The consumer promotion directed at Consumers. It includes Samples, Price off, free gifts, Cash
refund offers, premiums, prizes, warranties, cross promotion, point of purchase.

Consumer‟s promotion is to create Consumer pool for the brand.

The objective behind the several Consumer promotion programs of different


organizations is:

 To generate consumer interest, this should lead to trial.

 Increase the rate of purchase.

 Generate inquires from the target, consumer group.etc.


Trade promotion:

The trade promotions directed to the members of distribution channel. It includes


advertising, Display Allowances. The Prime objective is to push the product through the
marketing, intermediates and to get them to market the product aggressively.

Other objectives are:

 Encouraging trade to invest built inventory.

 Getting trade‟s co-operation in production.


Business and sales promotion:

It includes trades shows and conventions, contents for sales promotion representatives
and for special advertising. Although sales promotion tools are highly divers but they all
offer three distinctive benefits:

48
 Communication

 Incentive

 Invitation.

3. PERSONAL SELLING:

The importance of personal selling is pretty evident as this is the only marketing activity that
directly results into Revenue earning as its outcome. The simplest definition of personal selling
is-“selling that involves face- to-face interaction between the sales person and prospective
customer.”

There are certain products, which need demonstration or explanations. Personal selling is

most effective in promoting such products.

Advantages of personal selling:

 There is a personal touch and with trained salesman, the customer can feel
important and gives full attention to the product detailing.

 Demonstration of the product features and product working helps in better


product awareness and acceptance by consumers.

 Consumer‟s queries and apprehensions can be effectively answered.

 Follow–up action and persuasion are possible.

4. DIRECT MARKETING:

The Direct Marketing association defines Direct Marketing as follows: “Direct Marketing is an
interactive marketing system that uses one or more advertising media to affect a measurable

49
response and or transaction at any location”. This definition makes it clear that direct marketing
is directly from the company to the customer and there is no intermediary (retailer, whole seller
etc.) involved in between.

Various forms of direct marketing:

· Direct mail

· Telemarketing

· Email Marketing

· Couponing

· Direct response television marketing

· Direct selling.

5. PUBLIC RELATIONS:

Public relations are defined as deserving, acquiring and retaining a favorable reputation in
the market place. Public relations function aims at creating maintaining favorable public
opinion about company‟s products, people, policies and plans.

Public relations are defined as “any group that has an actual or potential interest or
impact on company‟s ability to achieve its objectives”. The public relations do not

50
directly help promoting the product but can make product or policy acceptance by the
public easy by generating a favorable image about the company.

PUBLIC RELATIONS IS USEFUL IN

 Acceptance of a company‟s as a specialist in a product group.

 Acceptance of company‟s policies regarding its employees, dealers, consumers


etc.

 Attracting capital and man-power.

 Acceptance of new product and new brand.

51
CHAPTER 4

DATA   ANALYSIS   AND


INTERPRETATION

52
Analysis:-

1. No. of people using Soft Drinks?


Yes : 70
No : 30

Interpretation

After survey student found most of customers having Soft Drinks.

53
2. Percentage of people using different brand?

Coca Cola - 45%


Thumps up - 5%
Sprite - 20%
Limca - 20%
Other - 10%

Interpretation

After survey student found that most of the customers having Coca Cola Soft
Drinks.

54
3. Does your purchasing decision affected by the brand name of the Soft Drinks?

Yes 80
No 20

Interpretation

Most educated customers say yes.

55
4. What is the opinion about the price policy of Soft Drinks Products?

Expensive 40
Cheap 60

Interpretation

Most of the young say, it is quite cheap.

56
5. For what purpose you buy Coca Cola Drinks ?

Official 25
Household 55
Business 10
Any other 10

Interpretation

Customers mostly preferred to use Coca Cola Drinks for their family itself.

57
6. Have you faced any problem regarding with Coca Cola?

Yes 06
No 94

Interpretation

Customers were satisfied with Drinks performance.

58
7. How does Coca Cola have customer relations?

Satisfactory 88
Unsatisfactory 12

Interpretation

Customers are satisfied with Coca Cola ’s customer relations.

59
8. Are you satisfied with Coca Cola Drinks ?

Yes 80
No 20

Interpretation

Customers are satisfied with Coca Cola Drinks .

60
9. How did you come to know about this drinks?

TV : 30
Internet : 10
Newspaper : 12
Banners & Hoardings : 10
Friends/Relatives : 15
Road show :8
Magazine :5
Dealer : 10

61
10. Which brand of /drinks will you give the preference?

Respondent’s Preference

24%
Coca
20% Cola
Thu
ms
up
Sprit
e
Limc
18% 28% a
other

10%

INTERPRETATION:

According to the survey Coca Cola were top of the mind of the respondents with 28%, sprite
62
was just behind with 24%, the 20% were thumps up and 18% o and others is 10% which are
limca.

11. Are you aware of Coca Cola product & services?

8%

Yes

No

92%

63
INTERPRETATION:

According to the survey of the project I studied that almost 92% of the peoples are aware of
Coca Cola products and services, and only 8% of the peoples are not aware of the Coca Cola
products and services because of less promotions in newspapers and news channels.

64
12. What is your opinion towards Coca Cola products & services?

3%

27%
24%

Very good

good

satisfactory

poor

46%

INTERPRETATION:

According to the survey of the project I studied that the respondent‟s opinion towards Coca
Cola products and services is 27% are very good, 46% are good, 24% are satisfactory and
3% are poor.

65
13. Have you heard about Coca Cola touch (24x7 SERVICE SUPPORT . 4000 CITIES)?

70%

60%

50%

40%

68%
30%

20% 32%

10%

0%

Yes

No

66
INTERPRETATION:

According to the survey of the project I studied that the 68% of the respondents have not heard
about the Coca Cola touch and only 32% of the respondents have heard about Coca Cola
touch.

67
14. After sales services which brand services is the best?

30%

26%
25%
22%
20%
20%
18%

15%
12%

10%

5%

0%
Coca Cola Thumps up Sprite Limca Others

INTERPRETATION:

According to the survey of the project I studied that the Coca Cola is top of the mind in after
sales services as compare to others.Coca Cola is 26%, sprite is 22%,thumps up is 20%,limca is
18% and others are 12%.

68
15.Does the Promotion help in better product awareness?

6%

Yes

No

94%

69
INTERPRETATION:

According to the survey of the project I studied that most of the respondents said that the
promotion is helpful in better product awareness.94% of the respondents are agree with this
and 6% don‟t think so.

70
16.Whether Promotional activity Profitable/ beneficial to you?

4%

Yes

No

96%

INTERPRETATION:

According to the survey and the data collected it is seen that most of the respondents think that
71
the promotional activity is profitable/beneficial to them. 96% of the respondents are agreeing
with that and 4% are not thinking so.

17. Have you ever purchased anything during or after the promotion?

80%
74%

70%

60%

50%

40%

30%

20% 17%

72
9%
10%

0%

73
Always sometime Never

INTERPRETATION:

According to the survey and the data collected it is seen that most of the respondents are not
always but sometime purchased during and after the promotion. Only 17% of the respondents are
purchased always during or after the promotion, and 74% are sometime purchased and 9% are
never purchased.

18.Does brand ambassador create more value in the product?

70%

62%

60%

50%

40%
Always
sometime
30%
22% never
20%

12%
10%

74
0%

never

INTERPRETATION:

According to the survey and the data collected it is seen that most of the respondents are
think that the brand ambassador creates more value in the product.62% respondents are
always agree with that because of them product get automatically more valuable and it
helps to attracts and influences us, 22% are thinking that not always but sometime they
create value in the product only if they are famous celebrities, and 12% are not think so.

19.What type of promotional activity attracts you more & required by company?

45% 42%

39%
40%

35%

30%

24%
25%

20%
16%

15%

10% 7%

5%

0%

Advertisement Canopy & Road Discounts Gifts/Lucky broacher


(Paper, TV) shows draws distribution

75
INTERPRETATION:

According to the survey and the data collected it is seen that most of the respondent thinks that,
the discounts and advertisements attract them more and required by company.42% are discounts,
Advertisement(paper, TV) are 39%, gifts/lucky draws are 24%,canopy& road shows are 16%
and broacher distribution are 7%.

76
20.Have you ever ignored the promotional activity? Why?

60%

50% 48%

40%

34%

30%

20% 17%

10%

0%

Always sometime Never

INTERPRETATION:

According to the survey and the data collected it is seen that the most of the respondents are
never ignore the promotional activities because of attractive and get information about
products and company.48% never ignored, 34% ignored sometime because of not time or in
hurry and 17% always ignored.

77
21.Where the promotional activities can be effective and get more response?

8%

9%

32%

showrooms

shopping
malls

society/corporate
22%
internet

other

36%

78
INTERPRETATION:

According to the above graph it can be studied that the most of the respondents think that in
the shopping malls and showrooms promotional activities can be effective and get more
response. For shopping malls 36%, for showroom 32%, for society/corporate 22%, for
internet 9% and for other (multiplex, road shows) 8%.

22.What is your opinion towards “less promotion more discount?”

79
INTERPRE
TATION:

6
0 According
% to the
survey and
the data
5 collected it
0 is seen that
% most of the
respondent
s are agree
4
with “less
0
promotion
%
and more
54%
discount”.5
3
4% are
0
agree with
% that, 24%
are
strongly
2 agree, 16%
0 are 16%
% disagree
and 6% are 6%
24% strongly
1 disagree. Agree
0 d
% i
s
a
0 g
% r
e
Strongly e
agree
Strongly
disagree

80
CHAPTER 5

FINDINGS

CONCLUSSION

SUGGESTIONS

81
Findings

1. After survey student found the satisfaction level of the Coca Cola
Drinks .
1. Most of the customers go for Coca Cola because of its safe Drinks.
2. Youth feel very comfortable with it.
3. Coca Cola Soft drinks is very innovative
4. High segment goes for name and goodwill.

82
Suggestions

1. The company should increase their Promotions.


5. More Marketing options should be available.
6. The company should provide more consumer value.
7. Follow-ups should be increased.
8. Efforts should be increased for Customer Relationship Managment.
9. Special offer should be there for common people.

83
Conclusion

This survey was done to identify various problems and level of


satisfaction of consumers, advertising and sales promotion of Coca Cola ,
so that efforts might done to satisfy them which would result in building
long-term relationships between customer and company. Due to delivery
in customer needs and expectations, it becomes a difficult task to satisfy
every customer, therefore to satisfy each and every customer the important
of building relationship with them existed, for this purpose a number of
questions were asked to find out behavior of the customers. This research
is also done to know the views of the customer towards the services and
quality and supply chain management of Coca Cola Drinks .

84
ANNEXURE
Questionnaire
Name: ……………….. Mobile: ……………….
Address: ………………
Occupation: - Student -Govt. Employees -Own Business
1. Teacher - Shop Owner -Other
1. Do you drink soft Drinks ?

Yes  No 
2. Which Soft Drinks you have own?
Coca Cola  Sprite  Thumps up  Limca  Other


3. Does your purchasing decision affected by the brand name of the Soft
Drinks?

Yes  No 

4. What is the opinion about the price policy of Soft Drinks Products?

Expensive  Cheap 
5. For what purpose you buy Coca Cola Drinks ?

Official  Household  Business  Any other

6. Have you faced any problem regarding the soft Drinks Products?

Yes  No 
7. How does Coca Cola have customer relations?

Satisfactory  Unsatisfactory

85
8. Are you satisfied with Coca Cola Drinks ?

Yes  No 

9. How did you come to know about this Soft Drinks?

Internet  Newspaper Banners & Hoardings 


Road show 
Friends/Relatives  Magazine  TV

BIBLOGRAPHY

BOOK REFERENCE

Referred Books:-

Principles of Marketing- Philips Kotler

Marketing Research-G.C Beri

WEBSITES:-

www. coca cola com

www.cocacola.in

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