RC Cola Case Essay

RC Cola Case Essay.

As we all know that Coca-Cola, Sprite, Pepsi are very famous drinks all over the world as well as Bangladesh. We can’t find single person who doesn’t like soft drinks. Mainly our young generation preferred to drinks. Now days there are many soft drinks company are coming continuously like Euro-Cola, RC Cola etc. Most of them are tastes are quite similar. Popularity of RC Cola is rapidly increasing day by day. In a small town, city even in villages RC Cola is available.

RC Cola has taken a very strong place in people’s heart within very short time. One of the reasons is its price and another reason is its taste. The first line of beverages was named ‘Royal Crown’ and the first Cola was called Chero-Cola.

Activities of the Management:
Different activities of the management in RC Company Ltd. are given below:


The overall planning approach in RC Company Ltd. is top-down. The seven members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Company.

Mainly the top level management plans al the long term and short term planning.

● Expansions of its products and sales are the long range planning. How can expand its products, sales and how it will be financed to earn more profit are its long term planning. * The lower level management of RC Company Ltd. makes short term plans. The management makes the plans of daily activities of the Company. Today or tomorrow’s work schedule making is the part of short term planning of RC Company Ltd.


Planning of the management of RC Company Ltd. establishes the goals of the company and how they are to be achieved. Organizing develops the structure to reach these goals. The CEO, Managing Director, Deputy Managing Director and Head of Factory are responsible for achieving business goals and overseeing the day to day operation.


The CEO and Managing Director of the Company are assisted by a senior Management Group consisting of Deputy Managing Director and Head of Factory centrally and co-ordinates operations of offices. Management of RC Company Ltd. also trains their labors, so that they can get better performances from their labors.


Through the planning the management of RC Company Ltd. builds climate, provides leadership and arranges the opportunity for motivation. Manager of the factory and offices plans and oversees the work of each of his or her sub-ordinates. Directing is aimed at getting the members of the Company to move in the direction that will achieve Company’s objectives.


The management approach in RC Company Ltd. is authoritative. Tasks are designed in such a way that one cannot leave without completing it as he is assigned for a day. Sitting arrangement in the factory and all offices is done in a way that the superior can monitor the sub-ordinates all the time. Budgeting, rewarding, punishing etc. are also practiced as control mechanism.

Product planning:

* RC Company designs the product according to the USA brand.

* Import the raw materials from USA.

* Assess the need of the market.

* They assess the product cost and the price of the product in the market.

* Import the machineries from USA.

* They follow the production method of the foreign product.

Production Method and Design:

Most of the flavors of RC Cola are as concentrates, which are rigorously analyzed toensure the quality specifications. Each concentrate lot is coded and packaged, thenshipped on for the next step – the addition of sweetener and water to the concentratesto produce syrups for cola.The quality standards are very high. Mixing tanks must be of a specified grade of stainless steel. The entire syrup manufacturing system must employ hot sanitation. Precise control over water and sweetener components must be demonstrated. And,quality control professionals must oversee each step of the process.

RC syrups start with fresh water, treated by using a multiple barrier filtration process.In one tank there are two large mixers, which look like wheels from outside. There tons of sugars are added to produce syrup. Then the syrup is transferred to the other tank where it is refined. After that it is kept under the Ultra Violet (UV) ray to cleanthe germs. In another tank the flavors are mixed. Finally it is transferred to thecarbonated chamber. Throughout the manufacturing process, they take special careto ensure that every step – from the selection of ingredients to the calibration of equipment – requirements. The final step is to verify that their efforts have been successful by testing the syrups for taste and adherence to their formula.

Product and Customer solution:

RC cola is a soft drink. We get it as a bottled drink. We get it in different size, quantity and taste. It contains calories, carbohydrate and sugar. There is no fat, protein and sodium. But diet cola has no sugar. We get it in different colors and flavors. It has no harmful element. It is a refreshing drink for all classes of people. RC is a product that consists of the basic physical offering and an accompanying set of images and services features that seek to satisfy needs. RC Cola is also that type product.

Price and Customer cost:

Price depends on its quantity. It is expected to all because the price is reasonable. We get it within 15-50 taka. Though the cost to market the product in the rural area is bit high, the price is same both to the urban and rural area. Pricing decisions are influenced by now responsive a target market is high or low price, the physiological created by prices and the actions of competitors.

Inventory control:

Inventory control balances the need for adequate stock against the costs of purchasing, handling, storing and keeping records on it. It is an attempt to keep enough material on hand to satisfy production requirements and at the same time avoid tying up too much capital in inventors. RC can keep its raw materials very well because if they do not keep their materials well they can face a heavy loss.

Materials management:

RC cola is a soft drink. To prepare it needs some elements that are very essential for it. The RC Company buys its raw materials from home and aboard. The RC Company establishes performance specification for required item, or accepts supplier’s specification. Department that needs submits purchase requisition to purchasing agent. Purchasing agent sends purchase order to supplier. Purchasing agent follows to confirm item will be delivered according to terms. Goods – received and inspected by the inspector of RC Company

Promotion and Communication:

Advertising is the main way of promoting new flavor and new design product. When the product is launched the company gives ads to the electronic media and paper media to create concentration of the people. When the new product is launched the company give discount in product. They offer several types of free gift with the newly launched product.

Promotional strategy is the second element of the marketing mix. It involves the correct blending of advertising, publicity to create the promotional mix.

Product and Customer solution:

RC cola is a soft drink. We get it as a bottled drink. We get it in different size, quantity and taste. It contains calories, carbohydrate and sugar. There is no fat, protein and sodium. But diet cola has no sugar. We get it in different colors and flavors. It has no harmful element. It is a refreshing drink for all classes of people. RC is a product that consists of the basic physical offering and an accompanying set of images and services features that seek to satisfy needs. RC Cola is also that type product.

Price and Customer cost:

Price depends on its quantity. It is expected to all because the price is reasonable. We get it within 15-50 taka. Though the cost to market the product in the rural area is bit high, the price is same both to the urban and rural area. Pricing decisions are influenced by now responsive a target market is high or low price, the physiological created by prices and the actions of competitors.

Responsibility to the Environment:

Water pollution- Water pollution is caused by the dumping of toxic chemicals, sewage and garbage into rivers and streams. To keep the water pollution free, steps are strictly maintained by the RC Company people.

Air pollution-Air pollution caused by carbon-monoxide and hydrocarbons that come from motor vehicles and by smoke and other pollutants from manufacturing plants. From the RC Company these gasses are not exhausted. Only very low amount of smoke exhausts from generators.

Land pollution-Land pollution results from strip mining of coal and minerals, forest fires, garbage, disposals and dumping of industrial wastes including chemicals. RC Company is not caused any kind of land pollutions.

Responsibility to Investors:

Company also has a responsibility to the people who invest money to them.

Proper management of funds-RC Company manages funds properly so as to return a fair profit to investors. Managers have a responsibility to thoroughly investigate their investments and to clearly present all facts and risks to investors.

Access to information-RC Company has the responsibility to make stock information available to all potential investors.

Executive compensation-Executives who run company carry tremendous responsibility and deserve to be compensated accordingly. A fair compensation program definitely rewarded executives for out-standing performance.


The management approach differs from organization to organization. But all types of organization apply mare or less some common functions such as planning, marketing, HRM, co-ordinating and production. RC Company Ltd. successfully applies management functions in its operations. As a result, today RC Company deserves top position in the market of soft drinks.

RC Cola Case Essay

Organizing in Coca cola company Essay

Organizing in Coca cola company Essay.

Managers in organizations have several functions and duties which they carry out to ensure that the organization is running well. Some of the duties and functions are planning, which is an ongoing process of developing the organizations mission and objectives as well as determining how the set mission and objectives can be accomplished. Directing involves influencing behavior of people by way of motivation, group dynamics, communication, discipline and leadership and controlling function where performance standards are established, (Erven, 2008).

Another function is organizing where the internal organizational structure of the organization are established.

It mostly focuses on coordination or resources, division and control of tasks as well as good information flow within the organization. Managers also ensure that all the departments and resources in them such as physical assets, finances, the human resource, technology and knowledge are doing the right duties and well organized.

Organizing also involves the activities which are carried out in the process of configuring the organization resources in order to implement plans which will be highly effective and also efficient.

It is one of the major functions of management where it deals with organizing the managers themselves, designing tasks, roles or jobs to people, organizing the organizations staff, organizing the groups and the general resources in the organization so that they achieve the goals and objectives set.

Managers need to organize their human resources in the best way since it is the ground in which the companies depend on,<http://www. bookrags. com/essay-2005/8/16/134242/800>. In organizing the human resource of the organization, the managers reviews the set plans, lists all the tasks that needs to be accomplished, divide the tasks into groups where each person is put into to a group where the person will be able to perform that certain task, this is referred to as division of labor.

In division of labor, the related jobs are grouped together in and efficient and logical manner, the jobs are then assigned to individuals and the managers delegates authority so as to establish relationships between the groups of jobs and the jobs themselves. In organizations, the employees wants their work to go on in a manners which excites them and makes them have the commitment needed to accomplish the set goals. In organization such as Coca cola, the managers have ensured that the budgets are invested in people because human resource is the most important assets in an organization.

The management has put in mind that when they are hiring the human resource in the organization, they are not just hiring their bodies or their time, rather, they are hiring their training, their experience in the work that they are delegated to do, their energy which they will put in the delegated duties, their creativity as well as their commitment which ensures that the job will be well done and will accomplish the expected or set results, (Warner, 1993).

Managers in Coca cola have emphasized and provided the necessary tools for the employees so that they will be able to carry out their jobs well, they provide career counseling so that employees are able to know exactly what is expected of them. Employees are also be provided with professional development opportunities and training in educational design so that they have the required formal knowledge and education for their position. This entails knowledge such as computer knowledge or knowledge of using other technologies for production purposes.

Good communication methods between the employees and the management have been provided so that the employees can be able to communicate any problems which they may be experiencing and requires the management intervention. Good communication is necessary between the employees at the same level of management so that can share knowledge pertaining the work that they are doing, help each other and also come up with new ideas of how to carry out their duties in a better manner.

The staff in an organization needs to be provided with a chance to participate in the management and decision making processes which incorporates the common goals which needs to be achieved because the employees can contribute and come up with better ideas for managers. Team work and cooperation instead of segregation is also important as employees feel that they are part of the organization. The organization environment should also be risk free with a competition aspect so that the employees can do their best.

When managing and organizing employees therefore, managers need to change their thinking style from the span of control to span of support for the employees. When they provide such an environment, the organization will be able to bring together people who have diverse backgrounds, experiences and ideas which will foster the emergence of creative ideas and approaches needed to run the organization. All these have been incorporated in organizing human resource of Coca cola and has yield good benefits.

Technology influences an organizations functioning and performance and cannot be separated from expertise, jobs, structures or processes of the organization. Coca cola company has has combined the technology available with the features of the organization and in turn it has created new affordances which have impacted positively on the boundaries of the organization. Managers should know that organizing does not need to take place around a hierarchy and the collection, storage, and distribution of the information as it was the case in the past management which used command and control to run the organizations.

The adaption of organizational practices and innovations in technology has made it possible for organizations such as Coca cola to organize around what can be done with information technology. When dealing with technology in an organization, managers should ensure that the technology is up to date so that it can be able to handle the processes being performed by the organization. The technologies should be arranged in such a manner that they are of benefit to the entire organization and that they are used in the right places.

Coca cola has organized its technology in such as way that its processes are running well and therefore the company is efficient and effective in its production. It is able to produce the required amount of products on time and there are delay involved associated with with their processes. They ensure that their processes are up to date by using the most up to date technology which is associated with their kind of productions.

The company has also harnessed and fueled many of its technological innovations in different arenas so as to stay ahead of other soft drink manufacturers and distribution. Due to its innovative use of technology and good organization, Coca cola has raced to the forefront of the beverage world. Technology has helped it to grow from its humble roots to become part of the larger system and it has also discovered new technologies and techniques of production.

Organizing and use of innovative advertising techniques which is harnessed by good management of technology, creation of new technologies and redefinition of how the technologies are used has made Coca cola to achieve greatness which makes the future to be brighter for the company. <http://projects. olin. edu/ahs/HOT2004/PolarBears/content. htm> In conclusion, optimization of organization resources by an organization help it to achieve its goals faster and therefore be more efficient and effective in the industry.

Good organization of resources such as human resource and technology helps the organization to be in a better position compared to others and therefore have a competitive edge. Coca cola has been able to optimize these resources in an effective and efficient way which make it a leader in its industry. Its organization of the human resource has made the employees to be experts in their field and therefore carry their duties more efficiently. Management of their technology has also made their processes and procedures effective and efficient an therefore have become leaders in the global market.

Organizing in Coca cola company Essay

Dr. Pepper/7 up Inc. Squirt brand Case Essay

Dr. Pepper/7 up Inc. Squirt brand Case Essay.

Introduction and Marketing Issues-

Dr Pepper/7Up Inc., is one of the largest soft drinks company in the world. This company has its production in 200 countries. Most popular soft drinks are: Dr Pepper, 7 UP, RC cola, A&W Root Beer, Canada dry, Hawaiian Punch, and Squirt.

Squirt, is a drink that was invented in the course of an experiment by Herb Bishop in 1938. It was a new carbonated soft drink that required less fruit and less sugar to produce hence it was quite famous during WWII.

Later, in 1977, Squirt was bought by a bottler Holland Michigan. The company updated Squirt’s logo and positioned the brand as a mainstream soft drink. Squirt joined A&W Brands in 1986, which was later purchased by Cadbury Schweppes PLC in 1993. Responsibility for manufacturing, marketing, and distribution of Squirt was assigned to Dr Pepper/Seven Up, Inc, which had been acquired by Cadbury Schweppes PLC in 1995. It still remains under the Dr Pepper/Seven Up, Inc.

branch. Nowadays, Squirt is bottled and sold by some 250 Bottlers in the US. Since 1990 Squirt’s unit sale volume has been stable until recently.

There is a huge volume of carbonated soft drink consumption in the US. American consumes 849 eight- ounce annually. CSD are popular among individuals aged 20 – 49. Consumption of diet drinks is popular at the age group of 25 and over. Today, Squirt’s product line consists of regular, diet, Ruby Red, and Diet Ruby Red. Diet Squirt and Diet Ruby Red account for 20% of Squirt’s total sales.

The study of Squirts sales volume has shown a slow decline in recent years, although squirt remains one of the best selling brands among citrus flavored drinks, still the competition due to better marketing budgets and techniques from the two main competitors Coca cola and Pepsi and changing market trends can bring the market share down for Squirt. The flat sales of Squirt need to be boosted before competing brands begin to erode the market share enjoyed by Squirt, therefore to safeguard against this Kate Cox, brand manager at Dr. Pepper/ seven up inc began to develop plan for market targeting and product positioning as prescribed by Foote, Cone and Belding that is brand’s advertisement agency.

In the mid- summer 2001, Squirt Brand management team, had to begin drafting annual advertising and promotion plan for Squirt in the US to chart a right marketing plan the team had to come up with answers for the following questions: Q1: What should be Squirt’s target market? Or what target market to choose? (FCB recommendations) Q2: How should Squirt be positioned according to the target market? Q3. Is it beneficial to follow recommendation of Foote, Cone and Belding of targeting and positioning Squirt or should old methods be followed or there should be some new innovative methods to increase sales and promotion of Squirt?

Situational analysis-

Squirt has been advertised in all the mediums of media like newspapers, television, and radio. Although squirt remains one of the best selling brands among citrus flavored drinks, still the study of Squirts sales volume has shown a slow decline in recent years. The competition due to better marketing budgets and techniques from the two main competitors Coca cola and Pepsi and changing market trends can bring the market share down for Squirt.

Squirts advertising agency Foote, Cone and Belding suggested market targeting and brand positioning as two ways for Squirt to come out of this problem.

Following their suggestion and considering that the answers to the questions mentioned above will serve as main decision making tools we analyzed the market situation for Squirt.

Competitive market-

Carbonated drink industry is highly competitive industry As mentioned previously this industry of carbonated drinks is dominated by three companies, Coca cola, Pepsi and Dr. Pepper/ 7 up inc These three companies also represent the top ten selling brands in the United States market. Squirt brand of Dr. Pepper is the best selling carbonated grapefruit soft drink brand in the United States. It is a caffeine-free, low-sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Hence it has a different market then other caffeinated drinks but it has competitors in form of Fresca, citrus, mellow- yellow and surge from Coca – cola and mountain dew from Pepsi. Consumer research conducted by Dr. Pepper/ 7 up inc. in taste testing of Squirt and Citrus of coca-cola group indicated that Squirt scored higher on the thirst quenching attribute. Compared to Dr. Pepper/7up inc. Coca- Cola and Pepsi show more aggressive for of advertising and promotion of products Consumer.

Buyer Behavior and customer segmentation-

Data suggests that in U.S the consumers drink more carbonated drink then tap water. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. This statistics shows that there is a huge market for carbonated drinks in U.S. It was observed that age and ethnic/racial angle played an important role in growing consumption of soft drinks. Hence changing demographics have been critical factors in the growing popularity of these flavored soft drinks.


Previous target market for squirt has been between 18 to 44 yrs old. According to the research by Foote, Cone and Belding, Squirt was more of a thirst quenching product then refreshing. They suggested that youngsters would identify with this “thirst quenching attribute of Squirt, and the research also suggests that this group is supposed to be the large consumer of soft drinks. Therefore, they recommended targeting youngsters between 18 -24 year old.

Ethnic/ racial-

In U.S 25% Americans are under 18 years of age and one quarter of U.S population is Hispanic and African- American. By a census in 2000, it was predicted that soon 17% out of youth under the age of 18 will be Hispanic; also they will amount to 45% of all minorities in U.S thus surpassing African Americans to become the largest ethnic group in U.S. It was also observed that per capita consumption of flavored soft drinks is higher in Hispanics and African- American than the other racial groups. This information prompts a wise decision to target these ethnic- racial groups to increase the market share of the squirt flavored carbonated drink. If the census of 2000 is accurate then it is a fact that to target this huge population of Hispanics and African- Americans as future market for Squirt will be very beneficial.

Squirt has already been exposed to many Hispanics, primarily those of Mexican decent because of the popularity of the beverage in Mexico. It is one of the largest selling brands of soda in Mexico, and Squirt has large brand recognition there.

Competitive market- Carbonated drink industry is highly competitive industry As mentioned previously this industry of carbonated drinks is dominated by three companies, Coca cola, Pepsi and Dr. Pepper/ 7 up inc These three companies also represent the top ten selling brands in the United States market. Squirt brand of Dr. Pepper is the best selling carbonated grapefruit soft drink brand in the United States. It is a caffeine-free, low-sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Hence it has a different market then other caffeinated drinks but it has competitors in form of Fresca, citrus, mellow- yellow and surge from Coca – cola and mountain dew from Pepsi.

SWOT analyses –

SWOT analyses of the Squirts market potential, is as follows:


Squirt is the best selling carbonated grapefruit soft drink brand in the United States. It is already has brand name recognition in the Mexican market, hence while targeting the Hispanic population Squirt will have a competitive edge over his competitors who are also targeting the same market fiercely.


Squirt brand has budget restrictions for advertising and promotion, which is not the case with its competitors like Coca- cola and Pepsi.


Squirt has a huge opportunity to successfully expand its brand by targeting young because their grape flavor attracts more youngsters because of its unique thirst quenching attribute and. penetrating Hispanic groups and African – American market to target them as guaranteed consumers for future, as it is predicted that Hispanics are going to be the most populous ethnic group with more number of youths as compared to other minority groups in U.S.


There are no threats specifically, but depending too much on particular ethnic group and particular age, in short narrow targeting criteria can prove to be disaster if it backfires due to certain reasons, anchoring the target consumers because they are the main source and they dictate the location to get the soft drink, also dominate taste preferences because soft drinks is an elastic product.

Considering the above mentioned information, it is clear that the recommendations of Foote, Cone and Belding for targeting and positioning of Squirt are rational and by targeting Hispanic and African – American, young population of 18 to 24 yrs of age will be beneficial for Squirt in a long run.

Problems and Opportunities:

Young Hispanics are considered to be the target market for positioning of Squirt for brand promotion. Also, considering the fact that Squirt is already popular among the Mexicans, can be used as a positive sign for this venture. Facts mentioned above in the situational analysis like that Hispanics are fast growing ethnic group in U.S, it is predicted that maximum number of youth is going to belong to the Hispanic community, Hispanics, does not like hard sell messages and likes messages that are real and relevant to them, they like shop closer to home in mom and pop stores, also the majority would prefer ads in Spanish (50%) while 30% prefer English and the rest have no preference.

Positioning and specific targeting is the main issue for the Squirt brand. The advertisements are not appealing to the suggested new modified target audience which should include Hispanics (specifically in the states of California and Texas). The advertisements should focus more on real life moments while showing Squirt being consumed by individuals. This will allow the target audience to connect with the Squirt brand. Also, Squirt should show advertisements in Spanish as well as English. Also, budget for advertising should be expanded.


Using the above information and the research provided by FCB’s presentation, it is clear that Squirt should focus on the age demographic of 18-24 year olds. An effective marketing campaign targeted towards 18-24 year olds has a two potential results: 1) a short term solution of increasing sales of squirt to 18-24 year olds and 2) a long-term solution of positioning squirt as a staple beverage for 18-24 year olds such that as consumers of squirt move out of the targeting age demographic they will continue to be loyal consumers of Squirt, thus increasing squirt sales in the 25+ market within a few years.

Kate Cox has a few options in how she markets Squirt to the target audience of 18-24 year olds:

• A “multicultural marketing mind-set” approach
• 18-24 year-olds (regardless of race)
• A hybrid approach

1) A multicultural marketing approach would appeal to the increasing amount of Hispanics and African Americans in the 18-24 age range. It would also provide for the popularity of Squirt in Mexico to filter in to the U.S.’s Mexican population. The concern with such a strategy, however, is that Caucasian’s are still the largest consumer of Squirt. The risk with a multicultural marketing mind-set is that such a marketing campaign has the potential to isolate Caucasian consumers. The benefit of such a campaign is to increase the consumer base to those who are not Caucasian, trusting that Caucasian’s will continue to consume Squirt, a wider appeal of the beverage to consumers would increase sales. 2) An 18-24 year old marketing campaign would target all consumers in the 18-24 demographic.

By identifying Squirt as a popular beverage amongst consumers in this age range, regardless of race, Squirt has the potential to both increase sales within the age demographic as well as within the Hispanic and African-American demographic. Such a campaign would have to be carefully thought out and the recommendation is for Cox to identify a celebrity or fad that is popular amongst 18-24 year olds, regardless of race. Such a campaign could be aligned with an event. For example, a Squirt campaign that is aligned with the Olympics with Olympic athletes as spokespersons could appeal to 18-24 year olds regardless of race. Another strategy that could work is partnering with a popular television program or event.

For example, Coca-Cola’s sales increased with it being the official beverage of American Idol judges. Such alignment with a popular TV program is sure to increase sales amongst all races within the targeting age-demographic. 3) A hybrid approach would, perhaps, be the most expensive, however, if nervous about leaving out the Hispanic and African-American populations through an overall marketing campaign targeting towards all 18-24 year olds, Squirt could do a “spin-off” campaign with commercials and packaging in Spanish. Such a campaign would reach all 18-24 year olds as well as all Hispanics, regardless of age. The initial costs are the initial down-fall, however a successful campaign could re-define Squirt in two needed demographics, all Hispanics and all 18-24 year olds.


A Hybrid campaign is the best option for Squirt. As 73% of Squirt consumers are Caucasian, redefining Squirt as a drink popular amongst 18-24 year olds with celebrity or event backing popular amongst the targeting demographic is the best option to create a brand for Squirt that will create consumer loyalty amongst 18-24 year olds, securing a place in the 25+ market within a few years. A smaller, geographic specific side campaign targeting towards Hispanics with Spanish ads and packaging will help Squirt capitalize on its popularity in Mexico and will see an increase in sales in border states, such as California and Texas.

Dr. Pepper/7 up Inc. Squirt brand Case Essay

Coca Cola Market Plan and Market Research Essay

Coca Cola Market Plan and Market Research Essay.

In the role of marketing consultant, I am presenting a marketing plan and a marketing research brief for Coca-Cola, a leader in the soft-drinks industry.


Marketing is definitely one of the major factors that contribute towards the success of any business. Especially in today’s growing competitive economy it is essential that correct marketing is executed so as to survive and grow in the globalized world.

This academic report is intended to provide a detailed analysis of the marketing plan of Coca-Cola Company.

The external environment is analyzed to demonstrate the threats that it imposes. It will also help to understand the monitoring system to be able to deter these threats. The analysis is made on the internal capabilities of the company as well. Within these analyses, the objectives of the company have been discussed. A reflection has been done on the marketing strategies undertaken by the company. Amidst all these, possible implementation, control and monitoring system have been highlighted.

The marketing plan is followed by a marketing research to identify the area of opportunities.
Several resources have been studied to put together the plan and the research.
These resources are mentioned at the end of the report.


Coca-Cola was invented way back in the year 1886 by Dr. John Pemberton. He was a pharmacist in Atlanta in Georgia. The formula of Coca-Cola was
fabricated by him in the backyard of his house in a three legged pot made up of brass (History of Coca-Cola). The intention at this point was to make a tonic for headache which turned out to be so tasty and refreshing that it gained orders due to this reason. The name Coca-Cola was pronounced by Frank Robinson, who was partner of Pemberton as well as a bookkeeper. He penned the words “Coca-Cola” in a script which is represented as a flow. This is how the name appears today on the brand and is famous overall. At that time, the average sale in a day was nine drinks. In the entire year, the sale was 25 gallons of the syrup.

With the passage of time, when Pemberton started to lose health, he decided and sold off the company to Asa Candler for a consolidated price of $2,300 in 1891. The first time that Coca-Cola was bottled was in 1894, by the owner of the Biedenharn Candy Company, Joseph Biedenharn. With the increased fame of the brand, there were fake imitators that entered in the market. To avoid confusion, the currently famous contour bottle was designed by the Root Glass Company of Terre Haute, Indiana.

By the year 1919, the product of the company was spread to all the states and the territories. In the same year, the company was bought by a group including Ernest Woodruff for $25 million. Robert Woodruff’s (eldest son of Ernest Woodruff) leadership for more than six decades made Coca-Cola a big success all over the world. On May 15, 1950, Coca-Cola was the foremost consumer product to appear on the issue of Time magazine.

Robert Goizueta became President of the company in 1981. Soon, he was recognized as one of the most successful leaders worldwide.  The Company introduced “New Coke” in 1985 and later brought up Coke II. This was unable to get the public’s favor and the people demanded their own previous coke back.  Visualizing and passing through all ups and downs, today, Coca-Cola is available in 200 countries over the world and the trademark “Coca-Cola” is represented in about eighty languages (The History of Coca-Cola).

Objectives of the Company

The objective of the company is to utilize its assets— its brand, the financial strength of the company, excellent distribution system, worldwide reach, and last but not the least a strong sense of commitment by the team that manages and executes work all across the world—to attain long-term growth that persists and is maintained (Coca-Cola Company, 2010). The vision that the company has for sustainable growth are explained as under: Profit – It works towards being able to provide maximum return to the shareholders of the company. The strategies are framed keeping this objective in mind. People – The workplace should be where people are motivated to work better. Coca-Cola provides a good work environment for the workers to be happy while working.

Portfolio – The Company aims to provide the beverage portfolio to the people that are able to satisfy the desires of the people. The marketing research done by the company before the final product, this factor is kept to be checked in the initial phase. Partners – Coca-Cola aims at maintaining a loyal relation with the partners and till date there is demonstrated a good relationship with all. Planet – The Company has an objective to do something different. This is represented by the fact that new types of beverages are introduced by the company to be different from the competitors and provide variety to the people. Productivity – It aims at maintaining to be effective and fast paced company (Coca Cola’s mission, vision and values, 2010). This has been at the core of every action by Coca-Cola as it has an effective space today in the global market.

Marketing Plan

While a marketing plan is drafted or studied, it required thorough examination and in depth research.

Market Segmentation

Coca Cola is one of the successful companies in the context of market segmentation as well. Demographic Segmentation – This segmentation is on the basis of age, gender, income and family size of the consumers. It has introduced various flavors for small children group. After a research when the company discovered that the Light Cola was considered as feminine drink by many, it introduced Coke Zero that aims at male consumer group who are health conscious. Different packing has different cost and targets to meet all the income groups. There is economy packs introduced which targets consumers as per the family size.

Geographical Segmentation – Due to different climatic conditions and regional differences, Coca Cola varies the taste of the product as per the people of that particular country.  Psychographic Segmentation – The advertisements done by Coca Cola are the best examples to express how the company segments the market as per the interests, attitudes and values of the consumers. Whenever a famous event takes place, the company introduces an ad in context of the event so that it touches the heart of the people.

Still, the primary market segmentation that is measurable, accessible and whose response can be noticed and worked upon is the segmentation on the basis of Demographic Segmentation. Coca Cola focuses most on youngsters between the ages of 13 to 25

Marketing Strategies
Current Market Strategy

Coca – Cola undertakes the segmented marketing strategy by marketing its products to different segments by separate offerings to them. This is called the differentiated marketing strategy.  Coca-Cola is quite popular in the younger group and hence most of its advertisements and campaigns are undertaken keeping in view the younger generation. An appropriate example for this will be that it has put vending machines in the schools and they have announced officially that they will be continuing to target the market. Another example is the “diet coke” that caters to the need of specific people.

The basic product, Coca Cola Soda is targeted to the entire market as a whole. The market strategy thus put to effect by the company is targeting all the possible domains and providing them with soda that meets their demand. This differentiated marketing strategy has provided Coca-Cola with a stand in all the possible markets.

Life Cycle of the Product

It has been a number of years that Coca Cola has introduced the drink in the market. As we can understand from the history, Coke has attained a stupendous response from the people and their likeness, which has contributed towards the growth of the product.

Once the product has been introduces and placed well in the market, comes the maturity stage. And as per the in-depth analysis, Coca-Cola stands at this stage in the product life cycle. At this stage there is a rapid growth in the sales of the product and later starts settling down. To be able to survive at such a phase, it is important to differentiate the product from the competitor’s product. This has been persistently followed by Coca-Cola and as can be seen, has been done very well. Since the sales begin to settle at a particular point, it is essential to give a differentiation to your product.

Branding Strategy

Coca-Cola is a famous international brand. The company has been working effectively and actively on maintaining its brand equity for quite some time now and has been able to achieve a well know brand equity and attained brand loyalty.

Coca-Cola provides a lot of varieties to the people in the range of soda. These varieties cater to the needs of all the market segments. The brand is excellently symbolized in the packaging. This makes it easy for the people to recognize the product. The red color that is implemented is quite eye-catchy and attracts the entire market domain including the primary market of youngsters in the age group of 13 to 25. The contour bottles as well as cans are designed in such a way that the product from Coca-Cola can be easily ascertained.

The brand equity by Coca – Cola has been created through rigorous campaigns undertaken and extraordinary advertisements designed for promotional purposes. It is after a lot of effort that Coca-Cola soda has attained this brand equity.

The branding strategy implemented by Coca-Cola Company has been quite effective in being able to gain a major market share. There are several kinds of brand strategy that can be implemented for the creation of brand equity. Some of these are – Private brand strategy, Family brand strategy, Manufacturer’s brand strategy and Hybrid brand strategy. Coca Cola has made the use of the Individual brand strategy. This can be explained as major products of Coca Cola are provided with their own brand names. For example, Sprite, Fanta, etc. may be represented and publicized as separate lines; the domain remains the same – Coca Cola.

Coca-Cola has introduced new products from time to time. Here is a marketing research brief to demonstrate how Coca-Cola expanded with large range of products.

Marketing Research Brief

Marketing research is as important as the marketing itself. It is essential that we are aware of the current market and the actions and plans of our competitors so that the framing and implementation of the marketing strategies move in the correct direction.

The development of the marketing strategy depends a lot on the marketing research. The plan can only be drafted after there is sufficient information regarding the market.  The implementation of the strategy is dependent on the market research again as before the implementation it is important to know how the draft has to be implemented well to achieve the desired results. Evaluation is a comparison of the achieved result and the expected result. Since, it has to be done on the marketing strategy this has its dependence on market research.

There are many opportunities identified for Coca-Cola in the marketing research. These are all derived from the major one is the partnership of Coca-Cola with International Olympic Committee (IOC).

Coca-Cola has been a known name so far. Analyzing the responses and current situation, the major challenge faced by the company’s soda pertains to the health issues and concerns.

I believe that it is required to revisit the entire make of the soda and check it for any harmful products that can be taken off from the making. Also, there can be some additional nutritional or healthy attributes added to the drink. But all this will be required to be done with the taste of the soda not changing or changing negligibly.

A subsidiary of Coca Cola in Britain took a decision of expanding without acquisition of new companies but by itself. This time, the company chose on implementing an internal strategy of marketing to develop new product (A., 2012).

Five stages of marketing research will be required to be implemented to develop the new product and float it successfully in the market. Identification of the Opportunity – Understand the concept behind the need of the change and pen down the ideal product Exploring the Solution – Surveys, focus groups and interviews can be conducted to understand the expectations from the upcoming product by the public. Measuring the Effectiveness – It needs to be gauged that if the new product will be effective enough so as to gain the targeted share in the market. Testing the Market – It is quits a costly affair to launch a new product. The internal and external capabilities of the company assist in being able to do so effectively. Track Market performance – After the launch of the new product, the performance needs to be checked and evaluated against the target.

External Environment of Coca-Cola

We shall conduct PESTLE analysis to understand the external environment of Coca-Cola. This is important because all of the factors are inter-related. If there is a political decision that is taken, it would impact the economic situation of the country and thus the environment (Monitoring system of coca-cola)

The first factor is the Political analysis. It inspects the present and prospective political influences. These include the influence of the tax laws, reforms by the government, tariffs and restrictions in trade. Guardian report of August 7, 2006, advises that there was a ban laid on the sale of coke, in some states of India, in the government offices and the institutes pertaining to education. This led to the company being destitute of prospective market of around 30 million.

The next is the economic analysis. This analyzes the impact by local, countywide and worldwide. If we look at this side, outside the United States, there is increased sale of beverage without alcohol. This means that all these countries will ensure stability and growth for the company.

In the sociological analysis, the analysis catered to the affects to the company with the changes in the attitude and lifestyle of people. This will mean that the target market of the young crowd will keep influencing the strategies of the company.

Technology is another significant analysis where it is evaluated that how the company is affected and influenced by the changing technology. Cherry coke was introduced in 1985; this was a result of the technological advancement.

The impact that the legislation has on the company is examined through the legal analysis. All the inventions and the developments of the product have to go through proper patent procedure. This is done by the company and like any other sector; it is required to meet the legal requirements.

Lastly, the environmental analysis is conducted which ascertains the issues. All the facilities of the company are consistently monitored and checked so as to meet the guidelines set by the government (tabishnehal)

It is discovered that the company takes due care in keeping a check and monitoring the external environment so as to keep up with the standards and avoid any prospective threats.

Internal Capabilities

The analysis of internal capabilities assists in formulating better strategies. Once the internal analysis is done, the company is aware of the resources that are available and are under its control (PremiumWritingService.com)

The increase in the revenue of the company as compared with that in 2009 was $6.48 billion in 2010. The total of the capital of Coca-Cola at that time was announced to be $72.929 billion. The company possesses various resources for it to sustain and grow as a leader in the production of soft drinks. We shall review these capabilities in terms of tangible and intangible resources (PremiumWritingService.com).

While analyzing the tangible resources, we shall cover the financial, human and physical resources of the company that contributes towards its success. The physical resources comprise of the equipments, infrastructure and the land and buildings. It has the set up units in all the states and regions. Because these are self-owned, it keeps the cost of production low. The financial position of Coca-Cola is not hidden from anyone. It is amongst the largest companies and has a strong financial set up. It is thus easy for it to execute new ventures and innovations because the cost, if productive, is not a restriction. There is highly motivational work environment and thus the staff of the company. The company has worked towards the improvement of its workers through lot of trainings. The workers are therefore able to deliver quality and timely work.

The other aspect to look at the internal capabilities is the intangible resources of the company. These comprise of the goodwill, intellectual property and the technology advancement. The company has always had an edge over others through the technological expertise that it holds. It has helped the company to be able to introduce new products in the market which today are quite successful such as flavored drinks. Once these products are discovered, they are patented by Coca-Cola and hence the company enjoys full right over the production of these drinks. The goodwill of the company is stupendous and gives an upper edge to it over any other company.


There have been lots of changes demonstrated by marketing mix of Coca – Cola.  Product – The Company has almost 3300 products with a range of variety.  Price – The price of the products vary as per the geographical location and the market. Due to variety of products, most of the products have different pricing strategy. Place – It is supplied in most of the parts of the world and is liked by all. It has a planned and effective network of distribution. Promotion – There are many strategies pertaining to promotion and advertisement by Coca-Cola. The marketing mix is floated keeping in view the differentiation as per the product, service, channel, people and image. For the primary target market, the product differentiation is done by keeping in mind the kind of soda that will be liked by this sector. The Service differentiation is as per the needs and requirements of the young crowd which has to be prompt. The images used in the products that are most used by the youngsters are meant to be attractive and eye-catching


By positioning it is meant the process of forming and embedding the image that the product has made in the mind of the customers as compared to the products of the competitors. Many companies make soft drinks these days. Although other companies may try to compete at the level of Coca-Cola, they will be unable to match the level of Coca Cola.

Positioning assists in making the customers understand the unique value and image of the product, as compared with the products of the competitors. Coca Cola has plans in place to form such positions that will provide it with a lot of advantage pertaining to its different target markets.

The positioning of Coca Cola has been based on the procedure of positioning through direct comparison and it has been able to position its products to be able to place towards benefit of its target market. Most of the people in general, form an image of a product through putting a comparison with some another product. This is quite evident in the well known professional was between Coca-Cola and Pepsi in all the product domains.

Supply Chain

The supply chain of Coca-Cola Company includes the company itself and nearly 300 bottling partners over the world. These bottling partners are not under direct control and supervision of the company.

The entire supply system of Coca-Cola runs through mode of various local and national channels. The company is responsible for manufacturing and selling the concentrates of Coca-Cola, the beverage base of the drink and also the syrup to the bottling operators. It still is the owner of the brand and has the responsibility and accountability for brand marketing initiatives for the consumers. These bottling partners then are involved in manufacturing, packaging, merchandising and distributing the ultimate beverages to the wholesale and retail customers and also to the other vending partners. All of these further sell the products to final consumers.

All of the bottling partners of Coca-Cola work in direct contact with the customers. These customers here refer to the amusement parks, convenience stores, grocery stores, street vendors, restaurants and movie theaters. These also help the Company to be able to execute many of the localized strategies which are planned and prepared in partnership with the bottling partners.

Market Share

In the year 2011, Coca Cola possessed a market share of around 42% as against the 30% of Pepsi’s market share. With the launch of Diet Coke, Coca Cola was able to expand more and augment its earning and profit levels.

Monitoring and Controls

Monitoring and controlling mechanism permits the companies to be able to check if there exists a variance when the actual budget is compared with the projected budget. This is essential to be executed because it helps in advising and suggesting important and necessary actions to meet the set marketing objectives. There are three tools that have been implemented to assess the performance of the market plan put in place:

* Sales Analysis

In this sales analysis, the total sales affected is broken down to precisely explain the sales in each segment. This will help in identifying the strengths and weaknesses of the plan in the small sections. The sellers of products of Coca Cola range from chief retail supermarkets to quite small stores at the corner of the street.

* Market Share Analysis

In this Market share analysis, the business sales of Coca Cola will be compared with the sales affected by its major competitors. Currently, Coca Cola is going through lot of changes and hence aims to regain the similar control and old of the market as it used to have previously.

* Marketing Profitability Analysis

The Marketing Profitability Analysis checks the cost involved and expended in marketing. Majorly, three ratios are put to use to be able to monitor and control the marketing profitability; they include market research to sales ratio, the advertising to sales ratio and the last one being sales representatives to sales ratio. From the result of these ratios, Coca Cola can determine and gauge any of the emerging trends which may not be welcomed. These can be any variation such as the requirement of a different product altogether. When we compare these ratio results with the actual results it provides the company with an idea on when change should be brought.


After the research, there are a few recommendations proposed.

These include:

Coca-Cola has been a known name so far. Analyzing the responses and current situation, the major challenge faced by the company’s soda pertains to the health issues and concerns.

I believe that it is required to revisit the entire make of the soda and check it for any harmful products that can be taken off from the making. Also, there can be some additional nutritional or healthy attributes added to the drink.

But all this will be required to be done with the taste of the soda not changing or changing negligibly.  Coca Cola needs to consider a number of issues relating to the physical distribution of its soft drink products. A distinctive promotion and communication strategy can be incorporated. Since the value proposition of the company is “uniqueness” of soda, there should be communication done to demonstrate the distinct features. I believe this will give a sense of confidence to the consumers that they are able to attain what has been promised to them.


After conducting research and framing the academic report, we have been able to understand the various strategies implemented and the areas of improvement for Coca-Cola. There are some opportunities as well identified which can be worked upon to gain a wider market.

The entire research assisted in gaining knowledge and understanding the concept of marketing better. Also, it helped to understand the overall soft-drinks industry – its strengths and weaknesses as well.

A., E. (2012, 09 04). 5 Tips for Developing Product Ranges Through Smart Market Research. Retrieved 01 31, 2013, from www.instant.ly: http://www.instant.ly/blog/2012/09/5-tips-for-developing-product-ranges-through-smart-market-research/ Coca Cola’s mission, vision and values. (2010). Retrieved 01 31, 2013, from ww.coca-cola.co.uk: http://www.coca-cola.co.uk/about-us/coca-cola-mission-vision-statement.html Coca-Cola Company. (2010, 02 26). Retrieved 01 31, 2013, from www.wikinvest.com: http://www.wikinvest.com/stock/Coca-Cola_Company_(KO)/Objective History of Coca-Cola. (n.d.). Retrieved 01 31, 2013, from www.coca-cola.co.uk: http://www.coca-cola.co.uk/about-us/history-of-coca-cola-company.html Monitoring system of coca-cola. (n.d.). Retrieved 01 31, 2013, from

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Coca Cola Market Plan and Market Research Essay

Influence Different Stakeholders Exert in One Organisation Essay

Influence Different Stakeholders Exert in One Organisation Essay.

D1- Evaluate the influence different stakeholders exert in one organisation.

I am going to evaluate how important it is for stakeholders to exert on an organisation. This is stakeholders such as employees, customers, shareholders, suppliers, owners and the government. I will also state if the influences have positive/negative effects on the long term success of the organisation.


The two types of stakeholder I am going to explain are students and the local community. Students can exert an influence through their individual attitude, behaviour and effort.

The more students in the school the more they will need to expand. This could be because of the population in the local community and the education provided by the school. This also allows the school to increase the chance of having different courses which could suit more or less everyone. If students want to achieve and gain good qualifications they will need to allow teachers to plan fun and enjoyable lessons. This includes a variety of different learning and teaching styles.

Some students may prefer to listen, group talks, and others might want to engage in activities. This also gives the teacher to learn more about the students and see how they will learn best.

If the examination performance is good and has improved from last year, it increases the reputation of the school. This is also good because it allows the school to compete locally with other schools. However, there are also negative affects which come into this such as the curriculum lowers and students do not come into school and learn. This will then lead to lessons being missed out on and not getting work done in on time which will also lead for the student to not understand the work properly. The school will be concerned about the students education as the examination (outcome) might turn out disappointingly bad.

The government gives out money for the community and what they have to do is divide the money between schools, services and others. They fund the school by giving them a budget of how much they think the school should/would spend in a year. This includes wages of teachers, utility bills and education resources. At the top of the second paragraph I mentioned that if the school was to expand as Woodbridge is in 2015. They will need to provide the school with more money as there are more students to educate and teachers to pay.

The negative side to it is that they are given a budget which they will have to stick to. If they go over the budget they will need proof of what bought and the money spent on. If they agree with it then they are given more money to the school. It will be difficult for them to get more money as recession goes on and economy down. This is because the government will have to cut everything so that the country runs also.


Employees are internal stakeholders and can exert influence by positive attitude, responsibility and productivity. Employers of coca-cola need to hire employees to do a specific job. Employees are very important as any other stakeholder as they have first contact with customers. If the customers have any enquiries or want to ask questions they will go to the employers of the business/organisation. If the employers have a bad attitude and lack of communication towards customers will lead to poor reputation for the company with an increase in complaints by people.

The organisation will need to focus on trying to recruit the best people which will benefit the business by having them there working. The employers should have good and positive attitudes to what they are doing and their job as employers will be satisfied with the work and keeps the business going. If the employees are doing what they are told to do the employer is happy. The better the staff, the better outcome of the business.

Customers are external stakeholders to any business/organisation. Customers take part in profit levels and turnover by buying the products or services that the business provides. Although there are non-profitable organisations run by the government. Organisations and businesses survive through having regular customers which is customer loyalty. Most customers want cheaper products, for example coca cola is a worldwide company who sell their products everywhere for example large stores such as Tesco and Sainsbury’s. Coca-cola also sells its products to much larger stores such as Costco. This is where small shop owners can purchase big bulks of drinks for cheaper. Then they take them to the shops and sell individually to make profit for themselves. However, customers may not always be there which will mean no money coming into the business.

Influence Different Stakeholders Exert in One Organisation Essay

Aquarius: A New Isotonic Sports Drink In Asia Essay

Aquarius: A New Isotonic Sports Drink In Asia Essay.


Aquarius is a new isotonic sports drink launched in Asia at the year 2012 by The Coca-Cola Company. Aquarius was introduced in Japan in year 1983 as a grapefruit flavored sports drink as a response to compete for market share with other isotonic sports drinks such as Pocari Sweat,H2O and 100plus.Aquarius was also the official sports drink for Olympics game in Barcelona in 1992 and 2012.As it’s a new launch product in Asia, there’s a need to create awareness to enable consumer to know and have a better understanding about this product.

Aquarius is not only an isotonic drink that is able to replenish health but also contains various minerals such as Potassium, vitamins B3, B12, B6 and Guarana.

Target Audience

With the knowledge of psychographic characteristics is used to describe and identify customers and prospective customers and to aid in developing strategies designed to appeal to specific segments of the market for Aquarius. Aquarius is created to target sports and health cautious consumers as there is a raise in health awareness as people are leading in a more health cautious behavior.

Exercise had become a more regular routine and Aquarius is the right isotonic drink to replenish and crunch thirst after a good workout.

Thoughts and Feelings

Consumers are able to trust Aquarius as it is a product from a reputational beverage company The Coca-Cola. The Coca-Cola had been a leading beverage brand in the market; with a good history background it created trust in its products. Aquarius is an official isotonic drink for Olympics 1992 and 2012. With such a massive event and being the official drink had proven its value and gain trust in the market. Well known athletic had consume Aquarius during the game had given it trust on the brand.

Objectives and Measures

The objective of Aquarius is to become the leading isotonic drink in the market. Measures can be achieved by conducting personal interviews, focus group interviews or conduct public survey to measure how recognized is the brand to consumers.

Behavioral Outcome

Aquarius would become a brand recall, a brand that will imprint in a person mind. As Aquarius is targeting sporty and health cautious consumers, therefore after a workout or they feel like getting a soft drink to ease the thirst, Aquarius will be the number one brand they will think of and reach out for.


Television advertisement, sports events and sports and health magazines will be heavily advertising Aquarius to promote this product as it is new in Asia. Asia marketing would be on a heavier focus. Aquarius must be easily available, places such as school; stadiums, drinks stores, vending machines and supermarkets will be carrying Aquarius. Pricing plays an important role; it will be sold at an affordable rate. A slogan can be proposed such as Always Energized, this create a catchy term for people to have deeper impression of Aquarius isotonic drink. A striking logo to imprint in person mind, whenever consumer sees similarity will easily associate to Aquarius.


A marathon run that held island wide can be a campaign to promote Aquarius. Proposal like Aquarius run which is held and official drink will Aquarius. Aquarius logo can be printed on the goodies bag and other merchandised included. By holding this event, it can create awareness and publicity, participants also get the chance to taste Aquarius and feel its benefits. Celebrity endorsement is also recommended, by getting a sporty and well known celebrity such as Jackie Chan. Jackie Chan is a well know international artiste and also an athletic, with his martial arts history and stunt act. He would be a good choice to endorse Aquarius. It will gain attraction and create notice of the brand in Asia or globally.

Nitty Gritty Details

The deadline for client is 13 December 2012 as client had a month to consider and get back. The budget for the production would be estimated at Eight hundred thousand dollars, this include marathon events and celebrity endorsement fee.

The Coca Cola Company, 2012,[Online],available:
http://www.coca-cola.com.sg/beverage_benefits/aquarius.asp view on [13 November 2012] Rtbot,2012,[Online],available:
http://www.rtbot.net/Aquarius_(sports_drink) view on [13 November 2012] Conteneo,2012,[Online],available:
http://www.infodrinks.com/soft-drinks/sport-drinks/isotonic/aquarius/ view on [13 November 2012]

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Aquarius: A New Isotonic Sports Drink In Asia Essay

The Coca-Cola Company Struggles with Ethical Crises Essay

The Coca-Cola Company Struggles with Ethical Crises Essay. Since the late nineteenth century Coca Cola has been a successful company. Coco-Cola went to war with its competitor PepsiCo throughout the 1990s as Coca-Cola expanded its market overseas. Its overseas sales increased to the point where over 85 percent of its sales came from outside of the United States (Ferrell, Fraedrich and Ferrell, 2011).

The Coca-Cola Company Struggles with Ethical Crises Essay

As a consequence, the Coca-Cola brand and trademark is the most recognized in the world and worth an estimated $25 billion.

Yet, by 2000 Coca-Cola failed to make Fortune’s list of most admired American companies because in part of its serious ethics violations like charges of racial discrimination, contractual disputes with distributors, problems with long-term contracts and that Coca-Cola misrepresented market tests (Ferrell, Fraedrich and Ferrell, 2011). This paper will examine the ethical issues Coca-Cola encountered to argue that its response to the crisis was handled well but nonetheless deeply affected the company’s bottom line.

Coca-Cola’s ethical issues

Since the late 1990s, Coca-Cola has been embroiled in at least eight significant ethical dilemmas.

The first came in June 1999 when Coca-Cola’s products were contaminated. Consumers in Belgium, the Netherlands and Luxembourg became sick after using Coca-Cola products. Coca-Cola mismanaged the problem and downplayed it. Then over 100 people became sick in France and months later in Poland with water contaminated with mold. In each of these events, Coca-Cola did not react in a timely fashion or with the appropriate concern for public health, but eventually conceded that it was their contamination problem. The second issue regarded Coca Cola’s unethical marketing behavior in Europe. Coca-Cola came close to crossing antitrust laws, which led the French government to deny further company purchases, and Italian companies won court cases over anticompetitive prices.

The Coca-Cola Company Struggles with Ethical Crises Essay

In 1999, it culminated in a full investigation by the European Commission and right after came charges of racial discrimination in the United States. Two thousand mostly African American current and former employees alleged that they were at the low end of the pay scale; management knew about it since 1995 and never intervened. Coca Cola denied it, but still settled and paid up to end the suit.

The fourth ethical dilemma involved the Burger King Test Market. In 2002 the company wanted to introduce a new children’s snack to be sold through Burger King, which was cautious about the new product and ordered a test market. When the reports came back with slow sales, Coco Cola, according to a mid-level manager who blew the whistle because he was the victim of retaliation for revealing the fraud, paid a customer $10,000 to bring 100s of kids to the restaurant to increase the sales.

After an investigation, the company had to pay out damages to the whistle blower and Burger King. According to Ferrell, Fraedrich and Ferrell (2011) Coca Cola was also accused of channel stuffing, a practice of “shipping extra inventory to wholesalers and retailers at an excessive rate”. In 2004, the SEC confirmed that Coca Cola had overblown financial statements the result of sending extra concentrate to Japan between 1997 and 1999. To settle with the SEC the company had to create an ethics and compliance office and verify its finances every quarter, and reduce its international stock of concentrate.

The troubles continued well into the 2000s. In 2006 Coca Cola changed its distribution structure of direct-store delivery, instead it started to use a subsidiary and deliver to warehouses. The bottlers thought that the new system would violate antitrust laws but Coca Cola went ahead with it. The problems were reported widely in the media, however, and the company’s reputation as well as those companies it dealt with suffered. The last two ethical dilemmas related to union relations and trade secrets. In Colombia, Coca Cola engaged in union busting but intimidating workers and causing deaths of organizing workers. In 2006 employees were arrested and charged with stealing trade secrets and not protecting Coca Cola’s intellectual property, which is a breach of confidence and an ethical issue. Significant ethical dilemmas

Ferrell, Fraedrich and Ferrell (2011) argue that, “the company’s less-than-stellar handling of the ethical crises has introduced a lack of integrity in its partnerships.” All of Coca Cola’s partners will assume more risk because of their relationship to Coca Cola and its partners “requires a diplomatic and considerate view of the business and its effects on various stakeholders” (Ferrell, Fraedrich and Ferrell 2011). So the ethical crises harmed the partnerships, their stakeholders and ultimately the profits.

The most significant ethical dilemma faced by Coca Cola, however, was its problem with the distributors because it is not just a public image problem, which Coca Cola seems to have weathered quite well. Rather, this was a problem with its stakeholders. The distributors, who believed that Coca Cola and CCE were attempting to set up a system that passed over the distributors, destroyed their confidence in Coca Cola, which is likely to be less responsive to Coca Cola’s public campaigns of social responsibility and concern over the environment and thus tougher to win back. Morsey (2011) argues that while external shareholders, in this case the distributors, might have shared concerns with Coca Cola, “it does not necessarily make them less critical [Corporate Social Responsibility] CSR initiatives or cause their norms to converge with the corporate norms”. This was certainly the case with the distributors. Recommendations for prevention

Coca Cola experienced problems in the foreign market because they did not abide by foreign laws and were accused of toying with the European market, for example. Coca Cola’s cooperation with international officials showed their commitment to repair business relations and take responsibility for their manufacturing process. In turn, their brand recognition allowed them to make good with consumers who were not too deeply affected by their ethical lapses.

However, where was the human resources department, which should have protected whistle blowers and instilled ethical business practices into Coca Cola employees and prevented widespread discriminatory labor practices? Clearly, according to Mackavey (2006) senior management sets the rules. But they were unable to lead the company. There was a large turnover at the top so clearly stable upper level management is a way to ensure that ethical lapses do not reoccur. Coca Cola’s response to the crisis

The company’s response to the crisis was to deal with its ethical crises in some cases head on but also to bring back its reputation by emphasizing its quality products and socially responsible practices (Ferrell, Fraedrich and Ferrell 2011). Moreover, in each case it seems that Coca Cola worked well with investigators, settled cases and tried to implement systems that would prevent their reoccurrence. Coca Cola also sought to improve relations with labor by instituting changes to hiring and oversight practices that reinforced their image as an ethical business. Their outreach to minority communities was effective but from a human resources perspective likely changed little over the long-term. In the end, Coca Cola’s long-time reputation pulled it out of the crises although not enough to erode PepsiCo’s market share.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases: 2011 custom edition (8 ed.). Mason, OH: South-Western Cengage Learning.

Mackavey, M. G. (2006). Practicing ethics in HR: Where’s the action? Journal of American Academy of Business, 9(2), pp. 244-249.

Morsing, M. (2006). Corporate social responsibility as strategic auto-communication: On the role of external stakeholders in member identification. Business Ethics: A European Review, 15(2), pp. 171-182.

The Coca-Cola Company Struggles with Ethical Crises Essay

Coke vs Pepsi Essay

Coke vs Pepsi Essay.

In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. The name was a suggestion given by John Pemberton’s bookkeeper Frank Robinson (Anonymous, 2001).

Birth of Coca Cola

Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted “Coca Cola into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob’s Pharmacy in Atlanta on May 8, 1886.

About nine servings of the soft drink were sold each day. Sales for that first year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expanses, so the first year of sales were a loss.

Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut.

In 1887, another Atlanta pharmacist and businessman, Asa Candler bought the formula for Coca Cola from inventor John Pemberton for $2,300. By the late 1890s, Coca Cola was one of America’s most popular fountain drinks, largely due to Candler’s aggressive marketing of the product. With Asa Candler, now at the helm, the Coca Cola Company increased syrup sales by over 4000% between 1890 and 1900 Robinson (Anonymous, 2001).

Advertising was an important factor in John Pemberton and Asa Candler’s success and by the turn of the century, the drink was sold across the United States and Canada. Around the same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle Robinson (Anonymous, 2001).


Somehow, Coke has created a brand that its fans believe in and identify with. The brand unlocks a treasure trove of brand reinforcements that have little to do with the taste or quality of the product. And it was this effect that Coke turned its back on in the introduction of New Coke in 1985. It’s this untapping of brand beliefs we have to keep in mind when we talk about branding and search. With search interactions, the appearance of a brand can unlock belief structures just as strong as Coke’s (Anonymous, 2011). Absent a brand, consumers will choose on price.

When a known brand is included, consumers will add their perception of the brand to the decision-making process and judge accordingly. So to increase the chances that your product or service is selected, make sure you have a strong brand with which people can identify themselves. Coke is a brand which has been endorsing brand personalities since its birth, indeed the brand personality most of the people run after. Its slogan says, “opens happiness” which is something that makes people think that they can actually have a good time sitting with friends and family while having coke through get together (Anonymous, 2001).


* Coke’s flavor, which is slightly bitterer and less sweet, is easier to drink over long periods of time. So consumers are more likely to order a second Coke in a sitting than they are a second Pepsi. Also people like coke because it doesn’t take away the food you are drinking coke with like water instead gives a complimentary taste along the food which people like. * One research shows that people like coca cola because It’s the sugar rush and the caffeine as well as the refreshment factor. * It also is laced with cocaine (not since the early inception of coca-cola) * It’s addicting and its better than water and affordable (Delany, 2012).


* Coke is known for its exceptional quality and superiority in product value, the Company possesses quality certification from various local and international standards.


Many of the big Coke ad campaigns involve warm and fuzzy imagery: A jolly Santa Claus, adorable polar bears and nostalgic paintings. Studies have shown that these types of images cause people to feel more warmly toward Coke and thus be more likely to reach for the red cans instead of the blue ones at the store (Delany, 2012).


With highly visible spots on top-rated shows like “American Idol” and the Super bowl, Coke gets its brand in front of more people. In the last few years, Pepsi has opted for less traditional campaigns that have not had huge payoffs. People would definitely go for the product sponsoring their favorite TV shows when there’s a choice and competition between 2 products (Delany, 2012).


* Transportation fleet of 77 bulkers as well as 2 ship loaders for efficient transport of concentrate, this accounts for the quick and efficient reservoir filling of coke in different countries and boasts the consumption level. * The economy of scale enables the company to maintain overhead cost and provide an edge over other competitors due to lower fixed cost per ton. Operational process cost is constantly observed for escalating efficiency and reducing cost.

* Strong network of around 200 countries, positioned at strategic locations throughout the world, has enabled the company to create a remarkable distribution system and access to markets at even the remote parts of the country. * Marketing communication options that makes the brand known to the people and set higher standards to be achieved.

1. Advertising
2. Promotions
3. Event marketing and sponsorship
4. Public relations and publicity
5. Personal selling
* Categories of advertisement coca cola uses to promote sales and benefits:
1. Television
2. Radio
3. Print
4. Direct response
5. Interactive: websites and online ads
6. Place advertising: billboards, movies, programs, airlines, product placement and point of purchase advertisement. These advertisement strategies has some influence on the consumers which affects the promotion and sales the product choosing the right themes of ads and identifying the right target audience in the advertisement is what makes coca cola a superior brand over other competitors. Brand personality and themes of advertisement that suits the target audience is indeed that makes the consumer try the brand and then stick to it (Anonymous, 2011).


Throughout 2012, Coca-Cola contributed $1,700,500 to a $46 million dollar political campaign known as “The Coalition Against The Costly Food Labeling Proposition, sponsored by Farmers and Food Producers”. This organization was set up to oppose a citizen’s initiative, known as Proposition 37, demanding mandatory labeling of foods containing genetically modified ingredients. As a result, there is a growing boycott of their products across North America. People started following the brand and it benefitted the company (Anonymous, 2011).


Coca cola company provides its employs with a wide range of feasibility which keeps them entangled into loyalty towards the company and to work in transformational terms rather than transactional. For example employee working in coca cola gets amount on which they started the job* no of years of his service, when they leave the company irrespective of whether they have been fired or given the resignation. For example an employee who worked for 10 years and with a starting salary of 80,000 rupees would get 8 lakh rupees when he would step out of the company along with his working experience.

KO graduate gets an experience based degree in supply chain which can only be attained while working in the coca cola company. It is an experience base degree not yet accessible in Pakistan’s any institute or university, so working in coca cola not only provides its employees with monetarily benefits but also some experience based skills which are beyond the level of skills and accomplishments that other companies provides.

Since KO graduate’s degree is inaccessible in Pakistan’s any university yet, so employees holding it through coca cola company would have a upper hand on all the other graduates and likewise are preferred more in other organizations as compared to those who doesn’t have it. These benefits opens doors into the big corporate world for employees. This is one strategy used by coca cola to keep the productive employees bound to the company and take the company far ahead toward the mission of the organization (Anonymous, 2011).


Participation marketing has witnessed tremendous growth in recent years as marketers are leveraging new media to build their brands through user-generated-content at a time when budgets are constrained (Anonymous, 2001). It is a thought not lost on Coke, which is turning to fans to help it double the size of its business by 2020. The soft drinks brand is looking to launch more collaborative product innovation projects with its customers, franchisees and bottlers as part of its ambition to become a less “secretive” company. Additionally, the brand is using its 50-million strong Facebook community to identify and support ideas that make people happy, a move the business is dubbing “the next step in fan culture.”


Coca-Cola has gone through a number of different advertising slogans in its long history, including “The pause that refreshes,” “I’d like to buy the world a Coke,” and “Coke is it.” COCA COLA in Pakistan claim in its slogan “ OPENS HAPPINESS” is indeed true and fulfilled as it opens a way for family to sit in real time and chat while having coke. Children adore coke so they sit stacked for it. So do teenagers. The lyrics of the slogan are outstanding and so is the overall presentation! It charges you up in a charming, vigorous and vibrant way infusing positive emotions in your being with family and friends. People love coke (Delany, 2012).

One of the world’s most iconic brands, Coca-Cola intimately understands consumer sentiment and how to influence their decision to buy, employing a combination of game-changing marketing savvy and retailer collaboration. Those winning in today’s marketplace understand the path to purchase can be influenced successfully through a deeper consideration of evolving consumer trends, and by working in partnership to make their brands relevant to shoppers (Anonymous, 2001).|


Coca-Cola has been prominently featured in countless films and television programs. Since its creation, it remains as one of the most important elements of the popular culture. It was a major plot element in films such as One, Two, Three, The Coca-Cola Kid, and The Gods Must Be Crazy among many others. It provides a setting for comical corporate shenanigans in the novel Syrup by Maxx Barry. And in music, in The Beatles’ song, “Come Together”, the lyrics said, “He shoot Coca-Cola, he say…”

The Beach Boys also referenced Coca-Cola in their 1964 song “All Summer Long” (i.e. ‘Member when you spilled Coke all over your blouse?) Also, the best selling artist of all time and worldwide cultural icon Elvis Presley, promoted Coca-Cola during his last tour of 1977. The Coca-Cola Company used Elvis’ image to promote the product. For example, the company used a song performed by Presley, A Little Less Conversation, in a Japanese Coca-Cola commercial (Anonymous, 2001).


According to the 2005 Annual Report, the company sells beverage products in more than 200 countries. The report further states that of the more than 50 billion beverage servings of all types consumed worldwide every day, beverages bearing the trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion (the latest figure in 2010 shows that now they serve 1.6 billion drinks every day). Of these, beverages bearing the trademark “Coca-Cola” or “Coke” accounted for approximately 78% of the company’s total gallon sales. Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed as follows: 42% in the United States

37% in Mexico, India, Brazil, Japan and the People’s Republic of China 20% spread throughout the rest of the world
In 2010, it was announced that Coca-Cola had become the first brand to top £1 billion in annual UK grocery sales (Anonymous, 2001). SALES CHART OF COCA COLA FROM 2001 TO 2010:

Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day. Coca-Cola (KO) has more than 500 non-alcoholic brands, which the company is selling worldwide. The company primarily sells sparkling beverages; however, its portfolio of products is not limited to these beverages.

Coca-Cola also sells water, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. Coca-Cola is one of the most widely recognizable brands in the world, and the company is mature. Like any other mature company, Coca-Cola pays a substantial percentage of its earnings to its shareholders in shape of cash dividends. Prospect of healthy income stream and stable growth makes Coca-Cola an ideal investment for income investors (Anonymous, 2011).


The two most popular carbonated drinks in almost all countries of the world are Coke and Pepsi. At first taste, they may seem the same, but those who prefer one over the other can tell the difference between them. They are both made from the same ingredients and they both contain the same amount of calories.


The popular drink known as Coke has the longer name of Coca-Cola. It was first manufactured in 1886 by John Pemberton as a medicinal product that contained cocaine. The cocaine content was removed from the recipe in 1930. The ingredients in Coke are carbonated water, sugar, phosphoric acid, caffeine and natural flavorings. The source of caffeine in Coke is Kola nuts. They contain about 3% caffeine and this is what gives the drink a bitter flavor. A can of coke contains about 140 calories. There are varieties of the drink as well, such as Vanilla Coke, caffeine-free Coke, sugar free Coke and Coke Zero. There is a mystery ingredient in Coke that is called 7X (Delany, 2012).


Pepsi, also known as Pepsi Cola, was first developed in North Carolina in 1893 by Caleb Bradham. It was originally known as “Brad’s Drink” because of the creator. He invented the drink in his pharmacy as a digestive drink that would also boost energy levels. The name of the drink comes from the enzyme, pepsin, which is one of the enzymes in the digestive system.

The company changes the logo of Pepsi on an annual basis. The main ingredients are sugar, phosphoric acid, caramel color, caffeine, citric acid, corn syrup and natural flavors and there are about 150 calories in a can of Pepsi. It contains a higher percentage of sugar than other black carbonated beverages. The same company also sells other carbonated drinks, such as Mountain Dew and Diet Pepsi (Delany, 2012).


Both Pepsi and Coke are black carbonated drinks that are served in restaurants and cafes as well as being widely available in stores. They are sold in cans and various sizes of bottles. They look the same and cannot be distinguished by color alone. Pepsi tastes a bit sweeter than Coke because it contains more sugar. Coke has more fizz than Pepsi and is a smooth drink because the fizz evaporates faster.

Today the ingredients are almost the same in both, but in the early years cocaine was one of the ingredients in Coke. Pepsi uses more branding techniques than Coke does and it changes its logo every year. Coke still has the same logo. It contains a mystery ingredient called 7X, but Pepsi does not have any mystery ingredients (Delany, 2012). This table will better illustrate the differences between Coke and Pepsi: Coke| Pepsi|

Not as sweet as Pepsi, is fizzier, but smooth| Sweeter than Coke and not as smooth| Has a secret ingredient – 7X| No secret ingredient|
Has the same logo| Changes its logo every year|


Pepsi needs to place more attention to its Frito Lay brands, when people buy coke or Pepsi soft drinks they compliment with chips or cakes. Pepsi shouldn’t worry bout beating coke with soda, let consumer buy coke, but make sure that same consumer drink that coke, with a bag of lays brand chips or cakes. And if the consumer prefers Pepsi, than it’s a complete win for pepsico.

Delany.D. (2012). Reasons Why Coke Is Better Than Pepsi. Retrieved February 18, 2013, from http://www.ehow.com/info_8121864_reasons-coke-better-pepsi.html#ixzz2LMKm6jHF Anonymous. (2001). The coca cola company. Retrieved February 20, 2013, from

Coke vs Pepsi Essay

Cold Drinks Essay

Cold Drinks Essay.

Soft drinks are non-alcoholic water-based flavoured drinks that are optionally sweetened, acidulated and carbonated. Some carbonated soft drinks also contain caffeine; mainly the brown-coloured cola drinks. PROBLEM STATEMENT To find out consumers buying behaviour and to identify gaps in the industry if any. RESEARCH OBJECTIVE To find out the factors affecting soft drinks buying pattern. To find out the consumers buying habits. Seasonal changes in the buying habits. To find out the consumer’s future requirements and conceptualize an innovative product.

To study the overall Beverages industry. SOFT DRINKS MARKET – AN OVERVIEW.

Global Scenario The global soft drink industry is highly concentrated, being largely controlled by the two multinational companies; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft drink market in most countries in the world with 60% of the global cola market with its flagship Coca-Cola brand. Other notable players include Cadbury Schweppes. Indian Scenario In the booming soft drinks industry, multinationals seem to be the biggest winners in terms of market share.

The Coca-Cola Company led the highly consolidated market with a 42. 8% volume share, followed by PepsiCo at 28. 6% in 2004. Danone is a minor player in India with a 0.

5% share, chiefly due to its late market entry and limited offerings. According to government estimates soft drinks marketed in India were 6540 million bottles in March 2001. The market growth rate, which was around 2-3% in ‘80s, increased to 5-6% in the early ‘90s and is presently 7-8% per annum. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days, which contributes more than 50% of the total yearly sales. In terms of regional distribution cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc.

Orange flavoured drinks and sodas are popular in southern states. Western markets have preference towards mango-flavoured drinks. Non-alcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks available in glass bottles, aluminium cans, PET bottles or disposable containers can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks and non-carbonated drinks include mango drinks. Soft drinks can also be divided into cola products and non-cola products. Cola products in Indian include brands like Pepsi Cola, Diet Pepsi, Coca- Cola, Diet Coke, Thumps Up etc.

Cola drinks account for nearly 61-62% of the total soft drinks market in India. Non-Cola products account for 36% the total soft drink market. Until 1990s, domestic players like Parle Group (Thumps Up, Limca, Goldspot) dominated the softdrink market in India. However, with the advent of the MNC players like Pepsi (1991) and Coke (re-entered in 1993 after it was banned in 1977) in the early 1990s, the market control shifted towards them by the late 1990s. The per capita consumption of soft drinks in India is among the lowest in the world – 5 bottles per annum compared to the 800 bottles per annum in the USA.

Delhi reports the highest per capita consumption in the country – 50 bottles per annum. The consumption of PET bottles is more in the urban areas (75% of total PET bottle [plastic bottles] consumption) whereas the sales of 200ml bottles were higher in the rural areas. According to a survey, 91% of the soft drink consumption in India is in the lower, lower middle and upper middle class section. After a somewhat subdued performance in 2006 due to a recurrence of the pesticides controversy, soft drinks sales bounced back strongly to record double-digit volume growth in 2007.

With carbonates growth back on a positive upward curve alongside burgeoning sales of fruit/vegetable juice and bottles water, soft drinks showed impressive growth in 2007. Off-trade volumes grew slightly faster than on-trade volumes, driven by higher consumption of packaged and branded soft drinks at home and on the go. The emergence of supermarkets/hypermarkets, heavy consumer promotions and various new product launches played a key role in driving off-trade volume growth. Soft drinks sales in 2007 were propelled by bottled water and fruit/vegetable juice with their healthier positioning helping to drive sales of soft drinks.

While carbonates posted single-digit growth in 2007, rebounding from the pesticides controversy of 2006, it was bottled water and fruit/vegetable juice that stormed ahead with high double-digit growth rates. Poor municipal infrastructure for tap water has pushed sales of bulk packaged water to households. Fruit/vegetable juice is growing as a result of increased consumer expenditure on naturally healthy (NH) beverages. While functional drinks and RTD tea also posted impressive growth in 2007, they were growing from a very small base and are yet to achieve a critical mass in terms of establishing a loyal consumer base.

With consumers showing a growing preference for healthier soft drinks such as bottled water and fruit/vegetable juice rather than carbonates in 2007, the two carbonates giants suffered a marginal decline in share. Although both players embarked on a change in strategy to focus more on non-carbonated soft drinks in their portfolios, they were unable to maintain share and lost out slightly to home-grown players Parle Bisleri and Dabur India. Coca-Cola India launched Minute Maid and pushed the sales of its juices while PepsiCo India heavily promoted Tropicana, Aquafina and Gatorade during 2007.

In addition, Coca-Cola India and PepsiCo India embarked on re-branding themselves as total beverage players and not just carbonates players. With the retail scene in India undergoing a rapid metamorphosis with the establishment of supermarkets/ hypermarkets and convenience stores, soft drinks sales have benefited positively. People in urban areas are increasingly flocking to supermarkets to pick up speciality items that are not available in the kirana stores that are found all over India. Modern retail outlets have provided soft drinks players with many opportunities to push their brands.

Consumer promotions for fruit/vegetable juice and emerging sectors such as RTD tea and functional drinks are driving product sampling. Attractive point-of-sale (PoS) displays and gift packs of concentrates are also drawing consumer attention in supermarkets/hypermarkets. Heath drinks Soft drinks is expected to post a strong performance on the back of increasing affluence amongst consumers and evolving lifestyles which lead to consumers devoting less time to preparing fresh food and drink at home.

Competition from the unorganised sector will diminish gradually as consumers show greater aversion to buying unpackaged and unbranded soft drinks from street vendors due to health and hygiene concerns. Rising health consciousness is also expected to drive sales of naturally healthy (NH) soft drinks such as 100% juice and mineral water. In addition, soft drinks such as sports drinks and juice-based carbonates are also expected to fare well over the forecast period as consumers perceive them to be healthy. Softdrinks can be segmented on the basis of carbonation, flavor type or place of consumption.

Based on carbonation, soft drinks are principally classified into carbonated and non-carbonated drinks. While the carbonated drinks mainly include Cola, orange and lemon, the non-carbonated drinks include mango flavors. Cola products account for over 60% of the total soft drink market and include popular brands such as Coca-Cola, Pepsi, Thumps Up etc. Non-cola segment constitutes for over 35% of the market and can be divided into four sub groups based on types of available flavours that include – *Orange: Popular brands include Fanta, Mirinda Orange etc. *Clear lime: 7Up, Sprite *Cloudy lime: Limca, Mirinda Lemon.

*Mango: Maaza, Slice Carbonates account for over 54% of total soft drinks sales in volume terms in India, with sales amounting to 2. 3 billion litres in 2004. CONSUMER’S PROFILE Soft drinks are impulse purchase products, and there is an element of indulgence associated with them. It does not figure very high on the shopping list. The consumer buys it just to while away time or as a substitute to water. Since, the older generation is of the opinion that nothing can substitute water, the companies generally target the youngsters, teenagers, children, employee of corporate offices.

As these products are general fun drink, brand loyalties are not strong for a particular brand and consumers look for novelty and new flavors. Soft drinks consumption heavily relies on seasons. Though consumers are becoming health conscious, fans of classic carbonated soft drinks (CSDs) still are on the large. SAMPLING DESIGN TARGET POPULATION Consumers are surveyed to know their preference. The respondents are between the age group of 15 to 40. All the respondents are residents of Mumbai city. SELECTING A SAMPLING TECHNIQUE The sampling was done on a random basis whereby the respondents visited and primary data is collected.

The Respondents were selected as per convenience sampling. RESEARCH DESIGN The research design was Exploratory in nature. Secondary Data and the Data from the Questionnaire were used to do the Analysis. This Exploratory research was done to give the insights about Consumers buying behaviour. The factors affecting their purchase of Soft- Drinks. DATA COLLECTION: The Primary data was collected through questionnaire administered to Consumers. The Secondary Data was collected through Internet, Business journals. The questionnaire was designed keeping the overall objectives and the information required.

The questionnaire administered to the Consumers was aimed at finding out their preference & factors affecting their purchase decision for Soft drinks and also to identify how these existing products can be improved according to the consumers. DATA ANALYSIS: Data Analysis is being done arranging the data in tabular forms and using graphical representations. The survey conducted and the related findings. How many bottles (consider 350 ml) of cold drinks do you consume? CONSUMPTION IN BOTTLES (350 ml) 1 in a week1 in 4 days1 in 2 days>1 in a day 25 %42%27%6% Analysis.

Consumers proffered having cold drinks once in a week or 4 days. Regular consumers were few. Consumption increased during the summers. Consumption is more amongst teenagers and youngsters. Young professionals also consumed cold drinks regularly mostly since it came complimentary with other food items such as pizzas or burgers. It is also used by working professionals as lunch-time substitute for water. Do you generally stick to brands ? YES89% NO11% Analysis: It is seen that, consumers are highly brand conscious. The big brands have been successful in creating loyalty towards their products in the long run.

But, it is seen that, the consumers are not particular about one specific brand. As long as the brand is known to him/her, the product would be consumed. Also, the safety issues concerning beverages are high. Hence, unbranded beverages are not popular. Do you stick to a particular brand? YES27% NO73% Analysis: It is seen that consumers look for branded beverages, but not for a particular product as such. As long as the product is from a well- known brand, it will be consumed. It is also seen that, whenever a particular soft-drink isn’t available, any other substitute works.

Hence, switching brands is relatively easy. Do you prefer ‘no fizz’ drinks (e. g. Slice, Maaza) or ‘strong fizz’ drinks e. g. (Thumbs up or Pepsi) ? Fizz LevelPercentage Strong Fizz16. 7% Light Fizz25% No Fizz58. 3% Analysis A very significant trend-shift towards no-carbonated drinks is seen. Previously, CSD (carbonated Soft drinks) have been very popular. Recently this trend has been changing. People now prefer ‘no fizz’ drinks. ‘Strong fizz’ i. e. cold drinks with high carbon concentration are running low on popularity. How Important are the following Factors ? Analysis.

Most important factors as considered by consumers as per the survey results, are Brand, flavour and nutritional value. Shape of the bottle or packaging is the least important criteria. Flavour is also an important factor. Data table is given below : FactorsLeast ImportantSomewhat ImportantAverageImportantCriticalN/ARating Average Color22. 2% 44. 4% 11. 1% 0. 0% 11. 1% 11. 1% 2. 25 Flavour0. 0% 22. 2% 22. 2% 33. 3% 22. 2% 0. 0% 3. 56 Quantity0. 0% 16. 7% 50. 0% 33. 3% 0. 0% 0. 0% 3. 17 Nutrition value0. 0% 20. 0% 10. 0% 50. 0%20. 0% 0. 0% 3. 70 Shape of bottle42. 9%0. 0% 28. 6% 0. 0% 14. 3% 14. 3% 2.

33 Packaging50. 0% 16. 7% 0. 0% 0. 0% 0. 0% 33. 3% 1. 25 Brand11. 1% 0. 0% 11. 1% 22. 2% 44. 4% 11. 1% 4. 00 Exclusivity0. 0% 16. 7% 16. 7% 16. 7% 0. 0% 50. 0% 3. 00 Would you prefer nutritious drinks over others? YES72% NO22% Analysis : People are growing more health conscious due to the changing trends, growing awareness levels, better education and standard of living. This leads them towards more nutritional drinks. Consumers are now looking for cold-drinks that also satisfy other needs or provide added benefits along with being just a cold drink, Do you like energy drinks more? YES68% NO32% Analysis:

Energy drinks are quite popular in the Indian markets with Red Bull being the prime player and a few other brands. The prices are still high considering the Indian markets. Would you like a glucose induced packaged drinking water ? YES79. 3% NO20. 7% Analysis: Packaged drinking water sales have grown manifolds in the last decade due to improper hygiene and improper municipal care. Consumers seem keen on having a product that can provide them added benefits with the packaged drinking water, such as, glucose induced water. Do you prefer the classic CSD (carbonated soft drinks) over anything else ?

YES41% NO59% Analysis There are a significant percentage of consumers who have strong preferences towards carbonated soft drinks. Most of these respondents are male. Would you buy a drink that comes in 3 variations depending on its level of ‘fizz’? YES79. 3% MAYBE23. 1% NO20. 7% Analysis : In this question, a conceptual product with 3 levels of fizz was put up to the respondents. The audience responded quite favourably towards the idea. Since there is a divide amongst consumers who prefer strong fizz and the others who prefer no fizz drinks, such a product is given a thumbs up by the consumers.

Would you like to have an additional product (e. g. chips) as a packaged product along with your cold drinks? YES53. 8% MAYBE30. 8% NO15. 4% Analysis: Generally, consumers have cold drinks along with wafers, chips or some kind of snack. In this question, the reaction of consumers is noted for how would they like it if the companies could come up with some offer where in the snacks come up bundled with the soft drink. These snacks can be suited best for the taste of the particular product along with which it could be supplied. CONCLUSION AND RECCOMMENDATIONS:

The soft drinks market is an attractive industry with lot of scope for new entrants. Even if there are branded players since decades, trends are shifting now towards unconventional products. New innovations regarding flavour and nutritional value are most welcomed by the consumers. Lifestyles are changing and stress levels are high. This drives consumers to look for added benefits with the conventional ‘colas’. Hence, now consumers prefer cold drinks with natural fruit extracts, flavoured milk or energy drinks. A certain dislike towards carbonated drinks is seen especially amongst female consumers.

As compared to other soft drinks these nutritional drinks are bit pricier. Ways should be thought of to reduce these rates and make them more affordable. Also, there are only mango flavoured, lemon flavoured or orange flavoured drinks available in the no-fizz category. More flavours can be tried. Brands should stress more on the nutritional value of the cold-drink and specify exactly how much of the daily nutrition will it provide them. A new product especially for females could be come up with. APPENDIX Cold drinks 1. Default Section 1.

How many bottles (consider 350 ml) of cold drinks do you consume? How many bottles (consider 350 ml) of cold drinks do you consume? one in a week one in 4 days one in 2 days one in a day more than 1 bottle in a day Other (please specify) 2. Do you generally stick to one brand or easily switch brands? Do you generally stick to one brand or easily switch brands? Yes No Maybe 3. Do you prefer ‘no fizz’ drinks (e. g. Slice, Maaza) or ‘strong fizz’ drinks like Thumbs up or Pepsi?

Do you prefer ‘no fizz’ drinks (e. g. Slice, Maaza) or ‘strong fizz’ drinks like Thumbs up or Pepsi?no fizz light fizz strong fizz Other (please specify) 4. Please select according to your preference (5 being the highest) Least ImportantSomewhat ImportantAverageImportantCriticalN/A Color Please select according to your preference (5 being the highest)

Color Least Important Somewhat Important Average Important Critical N/A Flavour Flavour Least Important Somewhat Important Average Important Critical N/A Quantity Quantity Least Important Somewhat Important Average Important Critical N/A Nutrition value Nutrition value Least Important Somewhat Important Average Important Critical N/A.

Shape of bottle Shape of bottle Least Important Somewhat Important Average Important Critical N/A Packaging Packaging Least Important Somewhat Important Average Important Critical N/A Brand Brand Least Important Somewhat Important Average Important Critical N/A Exclusivity Exclusivity Least Important Somewhat Important Average Important Critical N/A 5. Would you like your cold drink bottle to come in varied sizes so that it can be accomodated anywhere? Would you like your cold drink bottle to come in varied sizes so that it can be accomodated anywhere? Yes No Maybe.

Other (please specify) 6. Would you buy a drink that comes in 3 variations depending on its level of ‘fizz’? Would you buy a drink that comes in 3 variations depending on its level of ‘fizz’? Yes No Maybe 7. Would you prefer your cold drink bottles to preserve the fizz for several days after opening the bottle?

Would you prefer your cold drink bottles to preserve the fizz for several days after opening the bottle? Yes No Maybe 8. Would you like to have an additional product (e. g chips) as a packaged product along with your cold drinks? Would you like to have an additional product (e.g chips) as a packaged product along with your cold drinks? Yes No Maybe 9.

Would you like to buy cold drinks, if you will get some promotional offer along with your cold drinks? Would you like to buy cold drinks, if you will get some promotional offer along with your cold drinks?

Yes No Maybe 10. Gender? Gender? Male Female.

BIBLIOGRAPHY http://resources. bnet. com/index. php? http://www. agriculture-industry-india. com/agricultural-commodities/soft-drinks. html http://www. foodindustryindia. com http://www. euromonitor. com http://www. icmrindia. org.

Cold Drinks Essay