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TABLE OF CONTENTS
CHAPTER-1 INTRODUCTION
1.1 OVERVIEW OF INDUSTRY AS A WHOLE
1.2 PROFILE OF THE COMPANY
1.3 PROBLEMS OF THE COMPANY
1.4 COMPETITION INFORMATION
1.5 SWOT ANALYSIS
CHAPTER-2OBJECTIVE AND METHODOLOGY
2.1 SIGNIFICANCE
2.2 MANAGERIAL USEFULLNESS OF THE STUDY
2.3 OBJECTIVE OF THE STUDY
2.4 SCOPE OF THE STUDY
2.5 RESEARCH METHODOLOGY
2.6 LIMITATIONS OF THE STUDY
CHAPTER-3 CONCEPTUAL DISCUSSION
CHAPTER-4 DATA ANALYSIS
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CHAPTER-5 FINDINGS AND RECOMMENDATIONS
Annexures
Questionnaire
Bibliograph
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1.1 OVERVIEW OF THE SOFT DRINK INDUSTRY
BACKGROUND
Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks.
Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola,
lemon and oranges are carbonated drinks while mango drinks come under non-
carbonated category. The soft drinks market till early 1990s was in hands of domestic
players like Campa, Thumps Up, Limca, etc. but with opening up of economy and
coming of MNC Players: Pepsi and Coke, the market has come totally under their
control. While world wide Coke is the leader in carbonated drinks market in India it is
Pepsi which scores over Coke but this difference is fast decreasing (courtesy huge ad-
spending by both the players). Pepsi entered Indian market in 1991 coke re-entered (After
they were thrown out in 1977, by the then central government) in 1993.
Pepsi has been targeting its products towards youth and it has struck right chord with the
market and the sales have been doing well by sticking to this youth bandwagon. Coke on
the other hand struggled initially in establishing it self in the market. In a span of 7 years
of its operations in the county it changed its CEO four times but finally they seem to have
started understanding the pulse of Indian consumers.
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers.
Segmentation
The soft drink market can be segmented on the basis of place of consumption or on the
basis of type of products.
The segmentation on the basis of place of consumption divides the market into two parts:
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On-premise-80% of the consumption of soft drinks is on premise i.e. restaurants,
railways stations, cinema etc.
At-home- the rest 20% of the market compromises of the soft drink purchased for
consumption at home.
The market can also be segmented on the basis of types of products into cola products
and non-cola products.
Cola products account for nearly 61-62% of the total soft drinks market. The
brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, Diet Coke, and
Diet Pepsi etc.
Non-cola segment which constitutes 36% can be divided into 4 categories based
on the types of flavors available, namely:
Orange
Cloudy Lime
Clear Lime
Mango
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Consumer Habits and Practices
Soft drinks come under the category of products purchased in impulse.
Though the market is marred by brand loyalty the purchase decision itself is a
low involvement decision. This attitude of impulse buying is slowly changing
to occasion-led buying and also to some extent to consumption through home
refrigeration particularly in urban areas.
The market is slowly moving from non alcoholic carbonated drinks to fruit
based drinks and also to plain bottled water due to lower price and ready
availability.
Consumers purchase soft drinks primarily to quench thirst. Therefore people
traveling and not having access to hygienic water reach out for soft drink. This
accounts for a large part of the sales.
Brand awareness plays a crucial role in purchase decisions.
Consumers prefer convenient and economy products.
Availability in the chilled form affects the purchase decision. This has made
both the companies to push its sales and to increase its retail distribution by
offering Coolers to retailers.
While there is no aversion to consumption of soft drinks by any age group, the
main consumers of this market are people in the age group of 30 and below.
Product differentiation is very low, as all the products taste the same. But
brand loyalty is high in the case of kids and people in the age group of 20-30
yrs.
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Market Size And Growth
Soft drink market size for FY00 was around 270mn cases (6480mn bottles). The market,
which was witnessing 5-6% growth in the early 90s and even slower growth at around 2-
3% in late 80s. Presently the market growth has slowed down with growth rate of 7-8%
per annum compared to 22% growth rate in the previous year. The market size for FY01
is expected to be 7000 million bottles.
Year Production (Mn bottles)
88-89 1968
89-90 2070
90-91 2195
91-92 2490
92-93 2800
93-94 3000
94-95 3240
95-96 4000
96-97 4450
97-98 4920
98-99 5670
99-00 6480
2003-04(E) 7000
The market growth of 22% till last year has got stifled due to high excise duty of 40%
leading to higher price of the end product.
Market Characteristics:
The soft drink market is highly skewed in terms of place of consumption, in terms of
regional distribution & soft drink flavors as well as in terms of SKUs
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While 80% of the consumption is impulse based outside home 20% comes from
consumption at home. This trend is slowly changing with increase in occasion led sales.
Changing life style, increasing urbanization and impact of liberalization has slowly and
gradually started moving the market from impulse led to occasion led and home
refrigeration led consumption.
The market preference is highly regional based. While cola drinks have main markets in
metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are
popular in southern states. Sodas too are sold largely in southern states besides sale
through bars. Western markets have preference towards mango-flavored drinks. Diet
Coke presently constitutes just 0.7% of the total carbonated beverage market.
Major Players And Market Shares
The two global majors Pepsi and Coca-Cola dominate the soft drink market in India.
Coca-Cola, which had winded up its India operations during the introduction of the
FERA regime, reentered India 16 years later in 1993. Coca-Cola acquired a major chunk
of the soft drink market by buying out local brands Thumps Up, Limca and Gold Spot
from Parle Beverages. Coca Cola has also acquired Cadbury Schweppes soft drink brands
Crush, Canada Dry and Sport Cola in early 1999 and now recently in Oct '00 it acquired
distribution rights of these brands from IFB Agro Limited. Pepsi although started a
couple of years before Coca Cola in 1991, has a lower market share today. It has bought
over Mumbai based Dukes range of soft drink brands. Both the cola manufacturers come
up with their own market share figures and claim to have increased their share. Recently
in August '00 Pepsi claimed to have increased its market share for first five months of
calendar year 2000, to 49% from earlier levels of 47.3%, while Coke claims to have
increased its share in the market to 57% in the same period from 55% in the
corresponding period last year. Coke figures are based on ORG's data while that of Pepsi
are based on IMRB data.
Market Share (in %)
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Brand Name Market Share (in %) ( ORGfigures)
Market Share (in %) (IMRBfigures)
Pepsi 41 49
Coca Cola 57 48
Distribution Network
There is no involvement of wholesalers in the distribution of products. It is more like an
agent network. The companies have divided the country into various regions and
established a franchisee in each region. The franchisees have their own bottling plants
and manage all the day-to-day operations. However, of late, the soft drinks companies
have started setting up company owned bottling units/ have been acquiring some of its
franchise bottles.
INDIAN SOFT DRINK INDUSTRY
Dating back to 1993 the share of Cola In all types of soft drinks was (40%), that of
orange (20%), Lime and Lemon (30%) and that of Fruit Juice (10%). Of the Rs. 10,000
crore processed food market, cold beverage % share was 16%. Rs. 1,200 crore Indian soft
drink market has grown at an average of 2.5 to 3% from 1984 to 1992. In unit terms,
total market, today is about 110 million cases where per capita consumption of soft
drinks is in India, which amounts to about 5.3 bottles per year.
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Having begun in 1949, by 1978, Parle led the Indian soft drink Industry market with a
share of 33%. Theyre strongest and highest selling brand, Thums Up contributes to its
growth in 1990 when the market share touched 70%.
But with arrival of Pepsi it has climbed down to 53% Pepsi had a market share of about
20% in early 90's.
Till 1990, Parle's chief rival was pure drinks, but had been constantly losing out to Parle
and with arrival of Pepsi it has come down to a more 6% from 10%, and its position in
the market is still deteriorating.
Pure drinks owner was Late Charanjit Singh and his Company's share was largely
affected by less number of bottling plants and a limited distribution network, exactly the
same reason why Pepsi could not touch or match Parle in the last few years.
Till 1994, Parle had 60 bottlers against 'Pepsi's 20 and now Pepsi's bottlers have
increased from 20 to 40 bottlers. At that time Coke had around 2,10,000 retailers against
Pepsi's 1,50,000. 70% of Pepsi' plants are in rural areas. In 1977, a change in the
government at the centre led to the exit of Coca Cola, which preferred to quit rather than
dilute its equity to 40% in compliance with permissions of FERA. So Campa Cola till
late 70's was practically alone in the Cola market.
The beginning of 80's saw the emergence/birth of another Cola drink, Thums UP. (Was
launched by Parle in 1978-79). By mid 80's there was thrill by Mcdowells, and by late
80's, came in double Cola.
Double Cola manufacturing Co., was an NRI-run outfit with its plant at Nasik Double
Cola (Maharashtra). (It is a U.S. based double Cola co. licensee, and 5 of its 6 franchises
were NRI's)
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Another threat was that of fruit drinks. In 1988, fruit drinks market was valued at Rs. 40
Crore widening at a vigorous rate of 20%. Parle's FROOTI was the brand leader. Today
its market size is about Rs. 90 crore. (But the growth rate in past few years. has slowed
down).
The reason for success in late 80's of Frooti was clue to not only the packaging
revolution, but also the established network of Parle dealers at the right time.
The non-aerated drink market comprises of squashes, syrups and concentrates.
The 3,000 crore Indian soft drink industry is subdivided into the following categories
Cola : Pepsi, Coke, Thums Up, Sports Cola, Campa Cola
Orange : Mirinda, Fanta, Gold Spot, Crush, Campa Orange
Mango : Slice, Maaza, Mangola
Cloudy : Teem, Limca, Lemonade Schweppes
Clear : 7 Up, Citra, Canada Dry
Soda : Lehar Everest, Dukes, Bisleri Club Soda
1.2 COMPANY PROFILE - COCA COLA
The best has been made even better. Some may choose to call this the boldest single
marketing move in the history of the packaged-goods business. We simply call it the
surest move ever made because the taste of coke was shaped by the taste of the
consumer.
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- Roberto Goizueta at the launch of New Coke
AN INTRODUCTION
The Coca-Cola Company, popularly known as COKE was the largest aerated beverage
manufacturer in the world. Based in Atlanta, coke recorded sales of $18.81 billion and
profits of $3.53 billion in 2003. While sales had increased by 0.3%, profits had dropped
substantially by 14.3% Coca Cola was one of the largest employers in the world with a
staff strength of 30,000 in 2004. Renowned investor, Warren Buffet held an 8%stake in
the company.
In terms of, market capitalization, Coke was ranked 9 th in the world.
Coca-Cola and its subsidiaries operated in about 200 countries across the globe. Nearly
70% of sales and 80% of profits came from its international operations.
The company took pride in running what it claimed to be a global business that took care
of local needs. The flagship grand, Coca-Cola, was arguably the most valuable brand in
the world. The brand contributed nearly 70% of Cokes total sales. Worldwide Coke had
two of the three top- selling soft drinks: - COLA CLASSIC (#1) DIET COKES
(#3)&PEPSI at (#2).
India CEO Alexender Von Behr
He will surely add fizz to Coca-
Colas operations in the country.
After all, ALEXENDER VON
BEHR, 41, who took over from
departing Coca-Cola India CEO,
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Donald Short, has the reputation of being a trouble shooter who, as the companys
Director, Operations (Southeast & west Asia), steered it through the great Southeast
Asian meltdown last year. I am excited about my new role .we are committed to
developing the industry, says Alexander, who has had varied experience, with
companies as diverse as tobacco, giant Phillip Morris and consultancy major McKinsey
& Co
He is also a keen golfer, is talking about lobbying foe excise duty rationalization on soft
drinks. Looks like hes going to kick off his innings with a lot ofFIZZZZ.
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PRODUCTS
The world's favorite drink. The world's most valuable brand. The most recognizable word
across the world after OK. Coca-Cola has a truly remarkable heritage. From a humble
beginning in 1886, it is now the flagship brand of the largest manufacturer, marketer and
distributor of non-alcoholic beverages in the world. Coca-Cola made its return to the
country in 1993 and made significant investments to ensure that the beverage is available
to more and more people, even in the remote and inaccessible parts of the nation.
Coca-Cola returned to India in 1993 and over the past ten years has captured the
imagination of the nation, building strong associations with cricket, the thriving cinema
industry, music etc. Coca-Cola has been very strongly associated with cricket, sponsoring
the World Cup in 1996 and various other tournaments, including the Coca-Cola Cup in
Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho Jaye and
Life ho to Aisi were very popular and had entered the youth's vocabulary. In 2002, Coca-
Cola launched the campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand
to make it India's favorite soft-drink brand. In 2003, Coke was available for just Rs. 5
across the country and this pricing initiative together with improved distribution ensured
that all brands in the portfolio grew leaps and bounds.
Coca-Cola had signed on various celebrities including movie stars such as Karishma
Kapoor, cricketers such as Srinath, Sourav Ganguly, southern celebrities like Vijay in
the past and today, its brand ambassadors are Aamir Khan, Aishwarya Rai, Vivek
Oberoi and cricketerVirendra Sehwag.
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Strong Cola Taste, Exciting Personality
Thums Up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, Thums Up was acquired by The Coca-Cola Company in 1993.
Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys.
Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is seen as one ofthe favorite drinks since 1940's. Fanta entered the Indian market in 1993.
Over the years Fanta has occupied a strong market place and is identified as "The Fun
Catalyst"
Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and
tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging
one to indulge in the moment. This positive imagery is associated with happy, cheerful
and special times with friends.
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Lime n' lemoni Limca , the drink that can cast a tangy refreshing spell on anyone,
anywhere. Born in 1971, Limca has been the original thirst choice, of millions of
consumers for over 3 decades.
The brand has been displaying healthy volume growths year on year and Limca continues
to be the leading flavour soft drink in the country.
The sharp fizz and lemoni bite combined with the single minded positioning of the brand
as the ultimate refresher has continuously strengthened the brand franchise. Limca
energizes refreshes and transforms. Dive into the zingy refreshment of Limca and walk
away a new person.
Worldwide Sprite is ranked as the No. 4 soft drink &is sold in more than 190 countries.
In India, Sprite was launched in year 1999 & today it has grown to be one of the fastest
growing soft drinks, leading the Clear lime category. Today Sprite is perceived as a youth
icon. Why? With a strong appeal to the youth, Sprite hasstood for a straight forward and
honest attitude. Its clear crisp refers hing taste encourages the today's youth to trust their
instincts ,influence them to be true to who they are and to obey their thirst.
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Kinley water understands the importance and value of this life giving force. Kinley water
thus promises water that is as pure as it is meant to be. Water you can trust to be truly
safe and pure.
Kinley water comes with the assurance of safety from the Coca-Cola Company. That is
why we introduced Kinley with reverse-osmosis along with the latest technology to
ensure the purity of our product. That's why we go through rigorous testing procedures at
each and every location where Kinley is produced.
Quality Is Our Highest Business Objective
The Coca-Cola Company exists to benefit and refresh everyone it touches. For us,
Quality is more than just something we taste or see or measure. It shows in our every
action. We relentlessly strive to exceed the world's ever-changing expectations because
keeping our Quality promise in the marketplace is our highest business objective and our
enduring obligation.
1.3 PROBLEMS OF THE COMPANY
The company withheld a lot of information, which they termed as confidential, as a
result of which secondly data had to be reviled upon.
The exhaustive nature of the project comprising of 2 divisions of the company took
plenty amount of time in analyzing and prosecuting the report.
It has been a problem collecting secondary data on divisions like HR and Public
relation-as there were no release in any publications or was there a mention of it on
the company web site. As a result most information was collected though my
primary sources and regular Visits to the personnel concerned, and interviews.
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1.4 COMPETITION INFORMATION
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in
some localities. Around the world, some local brands do compete with Coke. In South
and Central America, Kola Real, known as Big Cola in Mexico, is a fast growing
competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by
brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French
region ofBretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola.
However, The Coca-Cola Companypurchased the brand in 1999. In Sweden, Julmust
outsells Coca-Cola during the Christmas season. In Scotland, the locally-produced
Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke
began to outpace its sales.
In India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local
drinkThums Up. However, The Coca-Cola Companypurchased Thums Up in 1993.
Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola, in which there
exists a United States embargo. Mecca Cola, in the Middle East, is a competitor to
Coca-Cola.
In Turkey, Cola Turka is a major competitor to Coca-Cola. In Iran and
also many countries of Middle East, Zam Zam Cola and Parsi Cola are major
competitors to Coca-Cola.
In some parts of China, Future cola or can be bought. InSlovenia, the locally-produced Cockta is a major competitor to Coca-Cola, as is the
inexpensive Mercator Cola, which is sold only in the country's biggest supermarket
chain, Mercator. Finally, in Madagascar, Classiko Cola made by Tiko Group the
largest manufactured company in the country is a serious competitor to Coca-Cola in
many regions.
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http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Kola_Realhttp://en.wikipedia.org/wiki/Big_Colahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Corsicahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bretagnehttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Inca_Kolahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Julmusthttp://en.wikipedia.org/wiki/Christmashttp://en.wikipedia.org/wiki/Scotlandhttp://en.wikipedia.org/wiki/Irn-Bruhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/w/index.php?title=Tropicola&action=edithttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/China_Colahttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Cocktahttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Mercator_(retail)http://en.wikipedia.org/wiki/Madagascarhttp://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/South_Americahttp://en.wikipedia.org/wiki/Central_Americahttp://en.wikipedia.org/wiki/Kola_Realhttp://en.wikipedia.org/wiki/Big_Colahttp://en.wikipedia.org/wiki/Mexicohttp://en.wikipedia.org/wiki/Corsicahttp://en.wikipedia.org/wiki/Corsica_Colahttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Bretagnehttp://en.wikipedia.org/wiki/Breizh_Colahttp://en.wikipedia.org/wiki/Inca_Kolahttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Julmusthttp://en.wikipedia.org/wiki/Christmashttp://en.wikipedia.org/wiki/Scotlandhttp://en.wikipedia.org/wiki/Irn-Bruhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Thums_Uphttp://en.wikipedia.org/w/index.php?title=Tropicola&action=edithttp://en.wikipedia.org/wiki/Cubahttp://en.wikipedia.org/wiki/Mecca_Colahttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Cola_Turkahttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Zam_Zam_Colahttp://en.wikipedia.org/wiki/Parsi_Colahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/China_Colahttp://en.wikipedia.org/wiki/Sloveniahttp://en.wikipedia.org/wiki/Cocktahttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Mercator_(retail)http://en.wikipedia.org/wiki/Madagascar8/3/2019 Coca Cola - JIMS Finalmunjal
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1.5 SWOT ANALYSIS
SWOT Analysis of Soft Drink Industry in relation to Coke
Strengths
Carbonated soft drink growth 10-15%
Estimated PCC to increase to 6-8 bottles
Weaknesses
Weak infrastructure (esp. Cooling)
Small retailers, less shelf space
Heavy excise duty (40%), recently havecome down a little
Cans have to be imported at high dutyrates.
Problems of empty bottles
Opportunities
Low PCC as compared to neighboringcountries
Growing rural market internecinecompetition
Rising disposable income
Changing consumer trends due tosatellite TV.
Threats
Political risks
Coke and Pepsi indulging in
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RESEARCH METHODOLOGY
2.1 OBJECTIVE OF THE STUDY
To deliver the message to the target audience that food tastes best when had with
Coca cola.
To carry forward the concept of Thanda being synonymous with a bottle of Coca-
Cola
To project the attitude of the brand in a very entertaining and engaging manner
To connect the brand with the youth of the country.
To spruce up its marketing campaign for the summer.
To have an edge over the competitor e.g. Pepsi and to increase the demand and
sales of Coca cola during the coming summer season.
The basic objective is to generate mass awareness in Indian market about Coca
cola and was basically done for brand recall
Using wit and humor the new campaign speaks the language of an empowered
generation.
The campaign encapsulates the new-found confidence of the Indian youth and
using wit and humor speaks the language of an empowered generation
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2.2 SCOPE OF THE STUDY
Our area of study is basically is studying the Indian Soft drink industry. Our
observation is highly focused on studying the Indian Soft drink industry scenario
in the Cola market in the 1990s and studying how Indian consumers have
responded to the entrance of the MNCs like Pepsi-Cola and Coke-Cola, 1990
onwards, keeping in mind their growth pattern and their respective market shares.
There has been a focused effort to study the various promotional schemes that
Coca -Cola India has to offer to its consumers and the effect of these schemes on
the consumer buying behavior has been studied. The various Sales Promotion
techniques that have been used by Coca-Cola have been discussed through the
project in different contexts.
An attempt has also been made to study the kind of Advertising Policies and
procedures that are being followed at the Coca-Cola Company.
2.3 RESEARCH METHODOLOGY
The work done in the field of advertising & Marketing in the Coca-Cola
Company is examined. The fundamental objective was to search for secondary
data or information from newspapers, libraries and make a survey of the
knowledgeable person in the subject to obtain further information.
This project is focused on studying Coca-Colas market share observing their
growth and seeking how much their market share is directly proportional to their
sales promotion and advertising expenses.
A questionnaire has been made and analyzed to see the impact of Coke brand on
consumers and their perceptions of Coca-Cola. Our area of emphasis would be to make a
study of Coke-Cola primarily in the Indian soft drink industry. A survey of the Indian
Soft Drink Industry has been done on the basis of secondary data and the effect of sales
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Conceptual Discussion
THE COCA COLA THANDE KA TADKA AD CAMPAIGN
Aamir Khan Adds More "Tadka" To Coca-Colas Summer Campaign
Campaign underlines the excellent taste compatibility of Coca-Cola with food
Part of Coca-Colas Thande Ka Tadka Campaign this summer, Aamir Khan is all
set to be seen in a new tourist avatar a first of its kind look
The latest Coca-Cola brand initiative is a class act powerful messaging
combined with rare wit and unmatched acting prowess, presented by the
Bollywood Super Star.
Ad. conceptualized by the acclaimed guru of Indian advertising Prasoon Joshi:
Directed by the talented Pradip Sarkar of Parineeta fame: and produced by
Apocalypso productions.
To hit airwaves across all leading channels on April 26 2006
New brand initiative to be supported by an Integrated Food Campaign including
a strong on the ground program.
Coca-Cola, worlds largest beverage company continues its trend of creating the most
powerful and appealing brand messaging for its consumers in India. The Coca-Cola
Thande ka Tadka campaign, earlier launched by countrys favorite Miss World and
Bollywood actor Aishwarya Rai, now takes a big leap forward with Aamir Khan. In the
latest brand initiative, Aamir makes a clever and funny appearance as a tourist who not
only underlines the message of How food tastes best when had with Coca-Cola, but
also reinforces the entire concept of Thanda being synonymous with a bottle of Coca-
Cola. The new brand campaign launches on all leading TV channels on 26th April 2006.
According to Vikas Gupta, VP-Marketing Coca-Cola India, "Thanda is synonymous with
Coca-Cola. It is also an established fact that food tastes best, when had with the worlds
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favorite soft drink. To blend and deliver all these messages to the consumer, the new
brand initiative utilizes Aamirs humour and acting skills. With the recipe now complete,
the initiative further enhances the impact of Coca-Colas brand campaign for the summer
- "Thande ka Tadka. The new brand initiative has been conceptualized by the acclaimed
advertising guru Prasoon Joshi and has been directed by the talented Pradip Sarkar of
Parineeta fame.
Story Board
The new Coca-Cola commercial features Aamir mistaken for a `Tourist entering a
restaurant and being shown with a special overpriced menu by the cunning manager
(trying to fool an unsuspecting tourist). But Aamir asks to be served with Thanda food.
The puzzled restaurant manager later on discovers that is actually being asked is - Thanda
(Coca-Cola) and food. The denouement is what will leave the audience pleasantly
surprised.
Aamirs make up man Jogendra G. Gupta needs a special mention for his superb
presentation of Aamirs tourist look.
Aishwarya Rai To Add " Thande Ka Tadka" To Coca-Cola
Coca-Cola Thande ka Tadka brand campaign encapsulates the new-found confidence
of the Indian youth.
Using wit and humor the new campaign speaks the language of an empowered
generation.
Launch of the new brand initiative, includes unleashing an all-new TV
commercial featuring Aishwarya Rai as the central protagonist.
The new ad has been conceptualized by the prolific ad veteran Prasoon Joshi of
McCann Erickson and brought to life by the talented direction of Abhijit
Chaudhuri of Black Magic Productions.
Coca-Cola Thande ka Tadka ads to be aired in different variants
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Campaign to go full steam ahead across all leading channels from 26th March
06 onwards.
Coca-Cola, is all set to sizzle consumers this summer as it unleashes a catchy new brand
campaign - Coca-Cola Thande Ka Tadka. Launch of the new brand initiative,
includes unleashing an all-new TV commercial featuring Aishwarya Rai as the central
protagonist. The campaign encapsulates the new-found confidence of the Indian youth
and using wit and humor speaks the language of an empowered generation. Coca-Cola
Thande Ka Tadka is a refreshing take on the current youth mindset of purposeful
action and a self empowered point of view.
The ad for the new campaign has been conceptualized by the prolific ad veteran PrasoonJoshi of McCann Erickson and brought to life by the talented direction of Abhijit
Chaudhuri of Black Magic Productions. The Coca-Cola Thande ka Tadka ads would hit
the TV screens in different variants. The entire campaign will go full steam ahead across
all leading TV channels from 26th March 06 onwards.
According to Mr. Vikas Gupta, Vice President Marketing, Coca-Cola India, The
youth of today is rearing to take on the world. They are smart, energetic, focused, and
confident enough to transform their aspirations into reality. Coca Colas Thande ka
Tadka campaign connects instantly with this evolved persona. The campaign ad features
Aishwarya in a totally new avatar. She uses emotions like wit and humor and encourages
us all to take control of ones life without being intimidated. The new Coca-Cola
Thande Ka Tadka series adds yet another dimension and is a natural progression from
the earlier campaigns that the company has run. With Thanda Matlab Coca-Cola, the
Brand celebrated pride in our national roots and the deep-rooted Indian-ness within all of
us.
According to Prasoon Joshi, Regional Creative Director. South Asia & South East
Asia, McCann Erickson, The sheer power of the Coca-Cola brand lies in its multi
dimensional appeal. Each new dimension when explored, gives a consumer yet another
chance to strengthen his or her emotional connect with the brand. Adding further
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Prasoon said The Coca-Cola Thande ka Tadka campaign projects the attitude of the
brand in a very entertaining and engaging manner. It also exploits the youth lingo which
helps the brand connect with the youth of the country.
ADVERTISEMENT CAMPAIGN SELECTED FOR THE PROJECT
Coca colas THANDE KA TADKA featuring Aamir Khan
DETAILS OF THE ADVERTISEMENT
The advertisement opens with Aamir Khan, who has been given the look and get up of a
Japanese tourist, entering a restaurant. The manager thinks that he can easily corn this
unsuspecting tourist and gives him a special overpriced menu. But Aamir refuses this and
instead asks for Thanda Food.
He is shown the menu card the rates go Rs.200 for samosa an so on he points for thanda
then samosa and thanda then pakoda but the manager says no sir no thanda, we serve
fresh food then Aamir goes in gets two cokes an food then makes the staff and manager
his point clear that he need coke and food (note:all this time he doesnt speak at all) then
after eating like hell he says in hardcore punjabi thande ka saath khana changa (with
coke food tastes gr8!!!!!!) the staff is surprised the waiter prompts sab japani toh hindi
bolta hai. Then Aamir says japani wapani nahi hoon mai, woh toh main
madhumakhiki chatte ki photo utaar raha taaa unhone meri utardi, ab mein tumhari
utaroongaa, doso ka samosaaaa, laoo bill laoooo !!!!!!!!! (I am not a japanese I was
taking a photo of honeycomb an they bit my face thats why I look like japanese...now I
will teach u a lesson .......Rs.200 for a samosa or what.........get me the bill)........
The manager is perplexed and only later on understands that his wise tourist is asking for
Thanda (Coca-Cola) and food. Coca-Cola with this ad campaign is seeking to send out
the message that food should be had along with Coca-Cola and it also re-emphasizes the
synonymous relation between Coca-Cola and Thanda
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PERSUASIVE TECHNIQUES USED TO ACHIEVE OBJECTIVES
Aamir Khan used as brand ambassador for the add campaign to connect the brand
with the youth of the country and to To carry forward the concept of Thanda
being synonymous with a bottle of Coca-Cola
Punchline Thande ke saath khana changa used to deliver the message of the
advertisement and also to develop a recall factor through this punchline.
The new brand initiative utilises Aamir's humour and acting skills to further
enhances the impact of Coca-Cola's brand campaign for the summer.
The creative content used to have the long lasting impact on the consumers mind.
BENEFIT SEGMENT FOR THE ADVERT
Youth of the country
A combination of all, influencer, decider, buyer and consumer.
Children/ kids who like to view humorous advertisements
Has everyone as its target audience, irrespective of sex, age, income, and so on
which succeeded by appealing to everybody
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FACTS ABOUT THE CUSTOMERS/TARGET AUDIENCE
Demographically: Almost everybody, irrespective of sex, age, income, and so on.
Though targeted at the youth, its appeal is nearly universal.
Psycho graphically: Children, Students, working people, people who stay at home and
have the desire to make their foos tastes great and have a desire to counter their thirst.
Behavioral: Frequent buyers or consumers and all those who regularly eat out and visit
food junctions. Also to the people who want to have something with their food even at
home.
Geographically: All the people around India, urban as well as rural population. Target
people living in very remote areas as well.
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BUYING BEHAVIOUR OF THE CONSUMER
1. What motivates him to buy
Desire to counter the thirst immediately
To make the taste of the food great with coca cola.
2. When does he buy Casual buying habits. Whenever thirsty or partying and
sometimes to make the food taste great. No regular pattern of buying the product.
3. Does he need any purchase facilitation information Not much information is
usually collected by the consumer except for the advertisements shown on the
television. These advertisements are mainly for brand recall and entertainment
and not much for the reason of information search. The consumers were only
active for information search when the dispute of pesticides being found in the
brand was there.
4. What is his level of involvement with purchase High involvement is there
since it is a matter of the health of the consumers and are very particular regarding
the pesticide content in their soft drink.
5. Does he buy the product rationally or emotionally or both Both
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PRODUCTION OF ADVERTISEMENT
The latest Coca-Cola brand initiative is a class act powerful messaging
combined with rare wit and unmatched acting prowess, presented by the
Bollywood Super Star- Aamir Khan
Ad. conceptualized by the acclaimed guru of Indian advertising Prasoon Joshi:
Directed by the talented Pradip Sarkar of Parineeta fame: and produced by
Apocalypso productions.
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DATA ANALYSIS
1. Out of the Coke or Pepsi Advertisements Which Companys Ad Campaigns
do you like better?
Liking of Coke or Pepsi Advertisemen
Cok
60%
Pepsi
40%
It can be seen clearly from the above graph that out of the total 25 respondents, 60%
of them like the advertisements of Coca cola i.e 15 out of 25 while the rest 40% i.e
10 out of 25 like the ad campaigns of Pepsi.
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2. Have you seen the Coca colas THANDE KA TADKA (The one featuring
Aamir khan as a Chinese visitor) television commercial?
Percentage of Resp onden ts seen the advertis
Yes
92%
No
8%
It can be seen from the above pie graph that out of the total of 25 respondents, majority of
the respondents have seen the coca colas THANDE KA TADKA advertisement
featuring Aamir Khan as a Japanese visitor. Only 85 i.e 2 respondents out of the 25 have
not seen the Advertisement.
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3. Do you think that this ad campaign is attractive enough to convert a Pepsi
consumer to a Coke consumer?
Ad Cam paign attractive to con vert a Pep si consum e
consumer
Yes, 16, 70
No, 7, 30
Yes
No
The above graph depicts that 70% of the total respondents feels that the THANDE KA
TADKA ad campaign is attractive enough to convert a Pepsi consumer to a coke
consumer while 7 out of 23(as 2 have not seen the advertisement) i.e. 30% does not find
the add attractive enough to convert a Pepsi consumer to a coke consumer.
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4. Rate the Creative content of this ad Campaign on the scale of 1 to 10 (10
being the most creative and 1 being the least creative)
R a t in g o f th e C r e a t iv e c o n t e n t o n t h e
1
2
3
4
5
6
7
8
9
1 0
0
1
0 0
2
7
2
5
4
2
0
2
4
6
8
1 0
1 2
1 2 3 4 5 6 7 8 9 1 0
R a n
No
ofRespo
ndents
R a n k
N o o f r e s p o n d
When asked the respondents about the creative content of the THANDE KA TADKA
advertisement, majority of the respondents i.e. 7 out of the total respondent have ranked
the creative content as 6 on the scale of 1-10, 10 being the most creative and 1 being the
least creative. 5 respondents have rate the creative content as 8, 4 of them have rated it 9
and 2 of them have rated it as 10 on such scale. One of the respondent has also rated it 2
on the scale. The above graph clearly shows that most of the respondents liked the
creative content of the advertisement and has therefore rated its content on the higher side
of the scale.
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5. Aamirs acting and humour skills were able to make a long lasting impact on
the consumers mind?
Aamir's ac ting able to ma ke a long lasting imp
consum er mind
Agre e, 18, 78
Disagr ee , 5, 22
Agree
Disagre
The above graph clearly depicts that out of the total no of the respondents, 78% of them
feels that Aamir Khans acting and humorous skills in the advertisement was able to
make a long lasting impact on the consumers mind while 5 respondents i.e. 22% of them
feels that he was not attractive enough to make a long lasting impact on the consumers
mind.
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6. How satisfied are you with the fact that this Ad Campaign will further
enhance the impact of Coca Colas brand image for this summer?
Ad campaign will further enhance the impact of
Coca cola's brand image for summer
2
11
8
2
00
2
4
6
8
10
12
Very
Satisfied
Quite
Satisfied
Neither
Satisfied Nor
Dissatisfied
Quite
Dissatisfied
Very
Dissatisfied
No
ofrespondents
No of
respondents
When respondents were asked about their satisfaction level regarding the fact that this Ad
campaign will further enhance the impact of Coca colas brand image for this summer, 2
of the respondents were very satisfied with the fact, maximum no of respondents i.e. 11
of them were Quite satisfied, 8 of them were of the view that they are neither satisfied nor
dissatisfied while 2 of them were quite dissatisfied with this fact. None of the respondent
was found to be very dissatisfied with the fact.
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7. Do you feel that Aamir Khan was able to deliver the message of the
advertisement to the best?
Aamir khan was able to deliver the message of the
Ad to the best
Yes, 18, 78%
No, 5, 22%
Yes
No
The above graph clearly depicts that 78% of the respondents i.e. 18 out of the 23
respondents feels that Aamir Khan was able to deliver the message of the Advertisement
to the best while 22% of them feels that he was not able to deliver the message of the
advertisement to the best. According to them some othe Brand ambassador would have
done this better. Apart from Aamir khan being the Brand Ambassador for this
advertisement, the other brand ambassadors they suggested were Vivek Oberoi, Virendra
Sehwag, Arshad Warsi, Sanjay Dutt, Saif Ali khan to name a few.
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8. Do you believe that the claims made through this advertisement (Food
tastes best when had with Coca Cola / Thande ke saath khana Changa)
are realistic enough to be believed?
0
2
4
6
8
10
No of
respondents
Claims made through the Ad are realistic enough
to be believed
Series1 8 6 9
Yes No Partially
It is clearly seen from the above graph that 9 respondents out of the total of 23 (2 have
not seen the advertisement) believe partially that the claims made through this
advertisement (Food tastes best when had with Coca cola/ Thande ke saath khana
changa) are realistic enough to be believed. 8 respondents believe that the claims are
realistic while 6 out of the 23 respondents believe that the claims are unrealistic.
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9. This ad campaign further emphasizes the synonymous relations between
Coca Cola and Thanda?
Ad Campaign further emphasizes synonomo
relations between Coca cola and Thanda
Agree, 18, 78
Disagree, 5
22%
AgreeDisagree
This Ad campaign further emphasizes the synonymous relations between Coca cola and
Thanda- 78% i.e. 18 out of 23 (2 of them has not seen the advertisement) agree with the
fact while 22% of them disagree with the fact i.e 5 respondents out of the total.
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10. How appealing is the tag Line THANDE KE SAATH KHANA CHANGA
for this ad campaign?
Rate on the scale of 1-5 (5 being very appealing and 1 being not being appealing)
1
3
2
3 3
6
4
7
5
4
0
2
4
6
8
No of
respondents
Appeal of the tag line for the Ad
Ratings 1 2 3 4 5
No of respondent 3 3 6 7 4
1 2 3 4 5
When the respondents were asked how appealing they find the tag line THANDE KE
SAATH KHANA CHANGA for this Ad campaign, most of the respondents (7 out of
the total) have rated it 4 on the scale of 1-5, 5 being very appealing and 1 being not very
appealing. 6 respondents have rated the appeal 3 on such scale, 3 of them have rated it 1
and 4 of the total of 23 respondents have rated it 5 on the scale of 1-5, 5 being very
appealing and 1 being not very appealing.
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11. Out of the two Campaigns of THANDE KA TADKA which one do you like
better?
Liking of two Ad campigns- featuring Aamir Kh
And Aishwarya Rai
Aamir Khan, 16,
70%
Aishwarya Rai,
7, 30%
Aamir KhanAishwarya Rai
When people were asked as to out of the two advertisement Campaigns of THANDE
KA TADKA which one they like better- the one featuring Aamir Khan or the one
featuring Aishwarya rai, most of the respondents i.e. 70% of them liked the ad campaign
done by Aamir khan while only 30% of the total respondents like the ad campaign
featuring Aishwarya Rai better.
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DEMOGRAPHICS OF THE RESPONDENT
12. SEX
percentage of respondents Male/Female
Male, 13, 52%
Female, 12, 4 8% Male
Female
Out of the total of 25 respondents, 52% of the respondents i.e 13 out of 25 of them were
male and the rest 48% respondents were female.
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13. Age Group
Ag e g r o u p o f R e s p o n
B elo w 1 8 Y e
4 %
1 8 - 2 5 Y e a
4 0 %
2 5 - 4 5 Y e a
4 4%
A b o v e 4 0 Y e
1 2 %B e lo w 1 8 Y e
1 8 - 2 5 Y e a r s
2 5 - 4 5 Y e a r s
A b o v e 4 0 Y e
The respondents selected for this research were of varied age groups, most of them were
in the age group of 25-45 years i.e. 11 out of the total of 25 were in this age group. 40%
comprises of the respondents belonging to the age group of 18-25 years. 4% of them were
below 18 years and the rest i.e 3 respondents (12% of the total) belong to age group of
above 40 years.
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14. Occupation of the respondent
Occupation of the Respondents
Student
36%
Service
36%
Business
20%
Others
8%
Student
Service
BusinessOthers
The respondents selected were mainly of the service class and students. 36% of each of
them taken. 20% of the respondents were businessmen. Others which comprises of 8% of
the respondents, mainly includes housewives.
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15. Which Media vehicle do you consult the most?
Media they Consult
News papers
27%
magazines5%
TV
35%
Radio
11%
All
22%News papers
magazines
TV
Radio
All
The above graph clearly depicts the media the respondents mainly consult. Some of the
respondents consult more than one media and some consult all the media options given to
them. The most common media vehicle consulted by most of them were news papers and
television.
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16. Which income group do you belong to?
Income group of the Responden
40%
0%0%12%
48%
Not Applicabl
Below 5,000
5,000-10,000
10,000-20,000
Above 20,000
Regarding the income group of the respondent, most of them (48% of the total
respondents i.e. 25) lies in the income group of above 20,000. 40% of the respondents
does not earn anything. None of the respondents were in the income group of 5,000-
10,000 and 12% of them belong to the income group of 10,000- 20,000.
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FINDINGS & RECOMMENDATIONS
FINDINGS
Mostly soft drink consumers like the Ad Campaigns of Coca cola better than
Pepsi.
Most of the people feels that this ad campaign is attractive enough to convert a
Pepsi consumer to a Coke consumer
Aamir Khan was able to deliver the message of the advertisement to the best
Out of the two Campaigns of THANDE KA TADKA, the ad featuring Aamirkhan is liked more than the one featuring Aishwarya Rai
The tag Line THANDE KE SAATH KHANA CHANGA is appropriate for the
advertisement.
This ad campaign further emphasizes the synonymous relations between Coca
Cola and Thanda
The claims made through this advertisement (Food tastes best when had with
Coca Cola / Thande ke saath khana Changa) are realistic enough to be
believed
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RECOMMENDATIONSRECOMMENDATIONS
Need for diversification it is important that Coke innovates constantly in its
appeal & packaging The reason being a certain section of the market finds the
original Coke little strong, so if a version of Coke is brought out which is a little
sweet it may catch on to the market.
Lastly it is important that the retailers price of Coke be controlled to a stable
level. It has been often seen that retailers charge a higher price than what is the
MRP of the product, if this can be controlled it is bound to increase the usage of
the product.
Increase of percapita usage in the market would inurn increase the rate of revenue
generated.
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QUESTIONNAIRE
I would request you to kindly assist us in this Research by sparing a little time to give us
your valuable feedback and suggestions through the Questionnaire below. Please do not
hesitate to inform us of any observation that you think may be relevant.
1. Out of the Coke or Pepsi Advertisements Which Companys Ad Campaigns do
you like better?
Coke
Pepsi
2. Have you seen the Coca colas THANDE KA TADKA (The one featuring
Aamir khan as a Chinese visitor) television commercial?
Yes
No
3. Do you think that this ad campaign is attractive enough to convert a Pepsi
consumer to a Coke consumer?
Yes
No
4. Rate the Creative content of this ad Campaign on the scale of 1 to 10 (10 being
the most creative and 1 being the least creative)
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5. Aamirs acting and humour skills were able to make a long lasting impact on the
consumers mind?
Agree
Disagree
6. How satisfied are you with the fact that this Ad Campaign will further enhance
the impact of Coca Colas brand image for this summer?
Very satisfied
Quite satisfied
Neither satisfied nor dissatisfied
Quite dissatisfied
Very dissatisfied
7. Do you feel that Aamir Khan was able to deliver the message of the advertisement
to the best?
Yes
No
If NO, please suggest a Brand Ambassador which you feel would have been the
best suited for this advertisement.
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16. Which income group do you belong to?
Amount (RS) MonthlyNot Applicable
Below 5000
5000-10,000
10,000-20,000
Above 20,000
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PROJECT TOOLS
Data in this project has been analyzed and interpreted with the help of:
1. Pie chart
2. Bar graph
BIBLIOGRAPHY
Books
Brand Power Paul Stobart
Consumer Behaviour J. Paul Peter
and Marketing Strategies
Marketing Concept Philip Kotter and Gary Armstrong
Magazines & Newspapers
Business Today 2004
Business World 2004
Economic Times 2004
Business Barons 2005
Websites
www.cocacola.com
www.financialexpress.com
www.businesstoday.com
http://www.businesstoday.com/http://www.businesstoday.com/Recommended