1

INTRODUCTION





2

INTRODUCTION
Pricing is the process of determining what a company will receive in exchange for its
product. Pricing factors are manufacturing cost, market place, competition, market
condition, brand, and quality of product. Pricing is a fundamental aspect of financial
modelling.
PRICING STRATEGY
Pricing is one of the four elements of the marketing mix, along with product, place
and promotion. Pricing strategy is important for companies who wish to achieve success by
finding the price point where they can maximize sales and profits. No matter what type of
product you sell, the price you charge your customers or clients will have a direct effect on
the success of your business. So a company must be very careful in determining the price of a
product. The needs of the consumer can be converted into demand only if the consumer has
the willingness and capacity to buy the product. Thus pricing is very important in marketing.
Companies may use a variety of pricing strategies, depending on their own unique marketing
goals and objectives.
A business can use a variety of pricing strategies when selling a product or service.
The Price can be set to maximize profitability for each unit sold or from the market overall. It
can be used to defend an existing market from new entrants, to increase market share within a
market or to enter a new market. Businesses may benefit from lowering or raising prices,
depending on the needs and behaviours of customers and clients in the particular market.
Finding the right pricing strategy is an important element in running a successful business







3




INDUSTRY
PROFILE





4

INDUSTRY PROFILE
The beverage industry refers to the industry that produces drinks. Beverage
production can vary greatly depending on which beverage is being made.
Pepsi and Coca Cola are two of the top manufacturers of carbonated soft drinks in the
world which are operating more than 100 years. These companies have different brands in
cold and also soft drinks. In this project first we have defined marketing strategies and its
meaning. The strategies adopted by Pepsi are introducing new soft drink products,
Diversification, Aggressive advertising campaigns. And the strategies adopted by Coke areas,
Accelerated soft drink growth, broaden their family of beverage brands, Growth system
profitability and capability together with their bottling partners, Serve customers with
creativity and consistency, Direct investment to highest potential area across market, Drive
efficiency and cost effectiveness everywhere.
In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-
Cola Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate
and beverage bases and powdered beverage mixes, a Company-owned bottling entity,
namely, Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The
Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages
under certain specified trademarks of The Coca-Cola Company; and an extensive distribution
system comprising of our customers, distributors and retailers. Coca-Cola India Private
Limited sells concentrate and beverage bases to authorized bottlers who are authorized to use
these to produce our portfolio of beverages. These authorized bottlers independently develop
local markets and distribute beverages to grocers, small retailers, supermarkets, restaurants
and numerous other businesses. In turn, these customers make our beverages available to
consumers across India.

The Coca-Cola system in India has already invested USD 2 Billion till 2011, since its
re-entry into India. The company will be investing another USD 5 Billion till the year 2020.
The Coca-Cola system in India directly employs over 25,000 people including those on
contract. The system has created indirect employment for more than 1, 50,000 people in
related industries through its vast procurement, supply and distribution system. We strive to

5



ensure that our work environment is safe and inclusive and that there are plentiful
opportunities for our people in India and across the world.
As an industry which has strong backward and forward linkages, our operations catalysis growth in
demand for products like glass, plastic, refrigeration, transportation, and Industrial and agricultural
products. Our operations also lead to incremental growth for enterprises engaged in post-
production activities like merchandising, marketing and sales. In addition, we share best practices
and technological advancements with our suppliers, vendors and allied industries which often lead
to improvement in the overall standards of quality across industries.
















6




COMPANY
PROFILE




7

COMPANY PROFILE
The Coca-Cola Company profile

Profile

Type Public
Traded as
NYSE: KO
Dow Jones Industrial Average Component
S&P 500 Component
Industry Beverage
Founded 1886
Founder(s) Asa Griggs Candler
Headquarters
Coca-Cola headquarters,
Atlanta, Georgia, U.S.
Area served Worldwide
Key people
Muhtar Kent
(Chairman & CEO)
Products List of The Coca-Cola Company products
Revenue US$48.01 billion (2012)
Operating income US$10.84 billion (2012)
Net income US$9.01 billion (2012)
Total assets US$86.17 billion (2012)
Total equity US$32.79 billion (2012)
Employees 146,200 (Dec 2011)
[2]

Subsidiaries List of The Coca-Cola Company subsidiaries
Website Coca-ColaCompany.com



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THE COCA-COLA COMPANY
The Coca-Cola Company is an American multinational beverage corporation and
manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups, which
is headquartered in Atlanta, Georgia. The company is best known for its flagship product
Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The
Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30,
1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892. Besides its
namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200
countries or territories and serves over 1.7 billion servings each day. The company operates a
franchised distribution system dating from 1889 where The Coca-Cola Company only
produces syrup concentrate which is then sold to various bottlers throughout the world who
hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North
America, Coca-Cola Refreshments.
As a Company, our products are an integral part of the micro economy particularly in small
towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is
amongst the largest domestic buyers of certain agricultural products.











9

MISSION

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference.


VISION

Our vision serves as the framework for our Roadmap and guides every aspect of our business
by describing what we need to accomplish in order to continue achieving sustainable, quality
growth.
People: Be a great place to work where people are inspired to be the best they can
be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities
Productivity: Be a highly effective, lean and fast-moving organization.



10




PRODUCT
PROFILE





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PRODUCT PROFILE

In India, Coca-Cola was the leading soft-drink till 1977 when the government policies
necessitated its departure. 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.
Diet Coke (introduced in 1982), Diet Coke Caffeine-Free
Cherry Coke (1985)
Diet Cherry Coke (1986)
Coke with Lemon (2001)
Vanilla Coke (2002)
Diet Vanilla Coke (2002)
Coca-Cola C2 (2004)
Diet Coke with Lime (2004)
Coca-Cola Zero (2005)
Coca-Cola Black Cherry Vanilla (2006)
Diet Coca-Cola Black Cherry Vanilla (2006)
Coca-Cola Black (2006)
Diet Coke Plus (2007)



12




OBJECTIVIE
OF
THE STUDY



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OBJECTIVE OF STUDY
To study about the pricing strategy of coca cola company and gain in depth
knowledge on the same
To study the problem of pricing strategies of coca cola company
To identify the parameters affecting the pricing strategy of coca cola .
How coca cola company fix pricing of products based on the cost or competitive
price.
To make recommendation for implementing of the problem.
The project is to study in efficient way the current pricing strategies of Coca-
Cola Company.
SWOT analysis of Coca-cola globally as well as locally. This would help us identify
areas of potential growth.













14





SCOPE
AND
LIMITAIONS
OF
THE STUDY




15

SCOPE OF THE STUDY

The study main purpose is to know what strategies following coca cola Company to fix price
their products. The mai n pur pos e of t hi s s t udy i s get i dea about t he pr i ce
of t he pr oduct t owar ds various Coca-Cola products. . It also helps to understand the
consumer behaviour about price.
LIMITATION OF THE STUDY
Economic and market conditions are very unpredictable (Present and future).
Our area is limited to study about pricing strategies















16




LITERATURE
REVIEW







17

LITERATURE REVIEW

The advertising and marketing spend in the industry is very high by Coke, Pepsi and
their bottlers. This makes it extremely difficult for an entrant to compete with the
incumbents and gain any visibility.
Coke and Pepsi have a long history of heavy advertising and this has earned them huge
amount of brand equity and loyal customers all over the world. This makes it virtually
impossible for a new entrant to match this scale in this market place.
Retailer Shelf Space (Retail Distribution): Retailers enjoy significant margins of 15-20% on
these soft drinks for the shelf space they offer. These margins are quite significant for their
bottom-line. This makes it tough for the new entrants to convince retailers to carry/substitute
their new products for Coke and Pepsi.
The several factors that make it very difficult for the competition to enter the soft drink
market include:

NETWORK BOTTLING

Both Coke and PepsiCo have franchisee agreements with their existing bottlers who have
rights in a certain geographic area in perpetuity. These agreements prohibit bottlers from
taking on new competing brands for similar products. Also with the recent consolidation
among the bottlers and the backward integration with both Coke and Pepsi buying
significant percent of bottling companies, it is very difficult for a firm entering to find
bottlers willing to distribute their product.
The other approach to try and build




18




RESEARCH
METHODOLOGY







19

INTRODUCION

Methodology is the systematic, theoretical analysis of the methods applied to a field of study,
or the theoretical analysis of the body of methods and principles associated with a branch of
knowledge. It, typically, encompasses concepts such as paradigm, theoretical model, phases
and quantitative or qualitative techniques.
A Methodology does not set out to provide solutions but offers the theoretical underpinning
for understanding which method, set of methods or so called best practices can be applied
to a specific case.
SECONDARY DATA
It is defined as the data collected earlier for a purpose other than one currently being pursued.
The data, which is collected from the published sources i.e., not originally collected of the
first rime is called secondary data.
As a researcher I have scanned lot of sources to get an access to secondary data which have
formed a reference base to compare the research findings. Secondary data in this study has
provided an insight and forms an outline for the core objectives established.
The various sources of secondary data used for this study are:-
News papers.
Magazines.
Text books.
Marketing reports of the company.
Internet.
For example:
A Cricket Legend SACHIN TENDULKAR Says about coca cola
I distinctly remember being proud of buying a second-hand international car in 1993, and
today we are spoiled for choices with the best of brands available in the country. But, as they
say, "the more things change, the more they remain the same," and Coca Cola is a

20

manifestation of this idiom. The joy of sipping the Coke remains the same, several years
hence!
2013 is all about re-inventing one self. For players like us who have been around for over two
decades, there is a need to look beyond our current pre-occupation and identify new
challenges and take on new roles. I have been associated with Coca-Cola for several years,
and the one thing I have seen during this association is the ability of the company to keep re-
inventing itself.
The economic time:
NEW DELHI: Beverages major Coca-Cola is planning to kick start an aggressive advertising
campaign to promote its flavoured soft drink 'Fanta' through a series of new commercials
during the coming summer season.
Sources said the company would soon start an integrated communication initiative focusing
on out-of-home media to promote the beverage during summer.

Books

The Real Thing : Truth and Power at the Coca-Cola Company-By Constance L. Hays, 2004
For God, Country and Coca-Cola: The Definitive History of the Great American Soft Drink
and the Company That Makes It-By Mark Pendergrast, 2000












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DATA ANALYSIS
AND
INTERPRETATION









22

DATA ANALYSIS AND INTERPRETATION


From the above secondary data, we have ascertained that preferred to purchase of
Coca-Cola products rather than other products

First of all, I have to recommend a far superior history of coke's first 100 years, Mark
Pendergrast's "For God, Country and Coca-Cola..." Pendergrast's well researched book neatly
and clearly tells the story of how the company started and ended up in the late 80s.
In some ways Hays book is a sequel. At its best it tells the story of what happened to the giant
syrup manufacturer after 1990. But the main problem with the book is Hays insistence on a
non-linear style that works poorly when presenting history. She often starts a story and then
stop--moving on to pick up another thread. Sometimes she comes back to finish the first
thread, often she just mentions it in passing in another thread. The result is a convoluted, hard
to follow story of Coke in the 1990s. Perhaps it is a refreshing change from the straight
forward "and then this happened" approach, but it makes for difficult reading.
Hays does a good job researching, she obviously spoke with many key people in Coke's
world. Often though the book reads like a magazine article, long on colourful quotes and
interesting asides, short on a central narrative drive.
If you have read Pendergrass and want to get updated then Hays will do the job. But if you
know only vague details about Coke then you should start with For God, Country and Coca-
Cola.

The Real Thing : Truth and Power at the Coca-Cola Company -I was really
disappointed in this book. I usually like books that promise to be about setting a company in a
historical moment but this book was really very clearly about the internal drama of the coca-
cola company and not even in a really interesting way, more in the way of when someone
tells you a really, really long story with too many details and too little of a punch line. There
are some interesting moments and I got all the way through it but overall I would not
recommend.

In the above secondary data A Cricket Legend SACHIN TENDULKAR told about quality
and brand value of coca cola products. It reveals the company performance in worldwide
market to maintain customers satisfaction and fulfil their needs.

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SWOT
ANALYSIS






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SWOT ANALYSIS OF COCA-COLA
STRENGTHES
World largest market shares for beverage industries. Coca Cola holds the largest beverage
market share in the world
Customer loyalty. The firm enjoys having one of the most loyal consumer groups.
Following Strong marketing and advertising strategies. Coca Cola advertising expenses
accounted for more than $3 billion in 2012 and increased firms sales and brand recognition.
Corporate Social Responsibility (CSR).
WEAKNESS
Negative publicity. The firm is often criticized for high water consumption in water scarce
regions and using harmful ingredients to produce its drinks.
Unlike most companys competitors, Coca Cola is still focusing only on selling beverage,
which puts the firm at disadvantage
OPPORTUNITIES
Consumption of bottled water is expected to grow both in India and the rest of the world.
Bottled water is one of the fastest-growing segments in the worlds food and beverage market
owing to increasing health concerns
Increasing demand for healthy food and beverages.



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THREATS
Consumers around the world become more health conscious and reduce their consumption of
carbonated drinks, drinks that have large amounts of sugar, calories and fat. This is the most
serious threat as Coca Cola is mainly serving carbonated drinks.
Water is becoming scarcer around the world and increases both in cost and criticism for Coca
Cola over the large amounts of water used in production.
PepsiCo is fiercely competing with Coca Cola over market share in BRIC countries,
especially India.

If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners,
then the partners may take actions that, while maximizing their own short-term profits, may
be detrimental to Coca-Cola
















26




FINDINGS,
SUGGESTIONS
AND
RECOMMENDATIONS



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FINDINGS

PRICING STRATEGIES
Coca Cola has intense competition with Pepsi so its pricing cant exceed too much nor
decrease too much as compared to the price of Pepsi Cola. If price of the Coca Cola exceed
too much from the Pepsi then people will shift to the Pepsi Cola and on the other hand if the
price of Coca Cola decreases people might get the impression that its quality is also low.
COMPETITIVE PRICING STRATEGY
Meet the competition pricing the coca cola product pricing are set around the same level as its
competitors, coca cola has to be perceived but still affordable. Like any other company who
has successfully been exist for more than a century, coca cola has had to remain
tremendously fluent and consistent with their pricing strategy. They have had worthy and
dangerous competitor constantly driving them to be smarter, faster, and better.
PROMOTIONAL PRICING POLICY
Coca Cola has offered promotional prices very frequently. Especially on some occasion Coca
Cola reduces its rates like in Ramadan Coca Cola reduces its rate unto 5 Rupees on 1.5 liter
bottle.
MARKET PENETRATION PRICING POLICY
In an economy like that of Pakistan, consumers tend to switch towards a low priced product.
Coca Colas objective is to target every consumer of the country so Coca Cola has to set its
prices at such a level which no one can offer to its consumers. That is why Coca Cola charges
the same prices as are being charged by its competitors. Otherwise, consumers may go for
Pepsi Cola in case of availability of Coca Cola at relatively

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SUGGESTIONS
Price should be set according to the product demand of public.
Price should not be too low or too high than the price competitor is charging from their
customers otherwise nobody will buy your product.
The coca cola must improve the awareness of brand in particular areas such as rural areas.
The coca cola have a good brand and quality. It improves the low price on big battles to reach
the more customers.
Price must be keeping the view of your target market
RECOMMENDATION
Company should satisfy the customer and should not change the price of the product according to the
competitor.
Sometimes penetration pricing will reduce the prestige of the product.
Try to give back water sources which you taken for the production process
There is a rapid increase in the price of the product company should concentrate to maintain a price to
eliminate competitors.




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CONCLUSION







30

CONCLUSION
In the conclusion, it can be stated that the coca cola company having good pricing
strategies. Most of the customer choosing the coca cola products on seems brand image.
There is no much competition in the market of soft drinks. The main competitor of Coca Cola
Company is Pepsi. The coca cola company always look in to competitor price to fix their
price of product.
The firm facing a competitor's price change must try to understand the competitor's intent and
the likely duration of the change. Strategy often depends on whether a firm is producing
homogeneous or non homogeneous products. Market leaders attacked by lower-priced
competitors can choose to maintain price, raise the perceived quality of their product, reduce
price, increase price and improve quality, or launch a low-priced fighter line
Companies must anticipate competitor price changes and prepare contingent response. A
number of responses are possible in terms of maintaining or changing price or quality.












31




ANNEXURE










32

ANNEXURE
Bibliography
Philip Kotler - Principles of Marketing South Asian Perspective- Pearson
Philip kotler-marketing Management- South Asian Perspective- Pearson
Robert F. Hartley and Cindy claycomb- Marketing Mistakes and Successes- Wiley
David A. Aaker-Strategic Market Management- Wiley

www.news.bbc.co.uk
www.india-server.com
www.magindia.com
www.coca-colaindia.com
www.wikiinvest.com
www.open2.net