customer satisfaction coca cola

Chapter-1

INTRODUCTION

Soft Drinks in India

Euro monitor International's Soft Drinks in India market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Robust growth continues

The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006, with higher volume growth in 2008 than that seen in 2007. The mature sectors of bottled water, fruit/vegetable juice and carbonates saw a dynamic year, with companies refreshing their products’ brand image and packaging to attract new consumers. Emerging product categories, such as energy drinks and reconstituted 100% juice, saw high double-digit growth rates, as companies increased their products’ penetration in India. Off-trade volume growth was slightly higher than on-trade volume

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growth, as convenient on-the-go packaging, company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market. With the industry back on the upward growth curve, companies refreshed their brands by introducing new and more premium packaging designs, pack sizes and communication campaigns. In 2008, bottled water was especially dynamic, with all the major national brands following the cue of Bisleri’s rebranding in late 2007. Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults. With “naturally healthy” becoming a key focus for consumers and manufacturers, fruit/vegetable drinks companies focused their efforts on highlighting their products’ fresh fruit content and health attributes. Companies put in motion plans to extend their product portfolios to emerging categories such as 100% juice, energy drinks and flavored water.

Domestic players thrive The multinationals Coca-Cola India and PepsiCo India Holdings saw their off-trade value shares of soft drinks in India decline over the review period, as other national and regional players updated their brand portfolios and increased the penetration of their brands in India. Bottled water players, such as Parle Bisleri and Dhariwal Industries, were particularly successful in expanding their consumer base through a concerted effort to increase their manufacturing capacity and move to newer regions within India. Dabur India and Parle Agro benefited from their first mover advantage in being present in highgrowth emerging product categories, such as 100% juice and other non-cola carbonates.

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Modern retailing thrives alongside kiranas With companies increasing their spend on below-the-line marketing activities, the ubiquitous kiranas were the beneficiaries of efforts such as branded glass door refrigerators, regional language banners and displays, and the roll-out of on-the-go packaging for carbonates and juice drinks. Supermarkets, which are still something of a novelty in many small cities, continued to attract a combination of regular grocery shoppers and young impulse buyers. Bundling and discount promotions for fruit/vegetable juice and concentrates drove product sampling in supermarkets. Emerging categories, such as energy drinks and RTD tea, received a boost from impulse buyers in supermarkets, while attractive displays and imported products in up market shopping centre introduced consumers to new products, such as sports drinks and flavored water.

Double-digit growth expected With rising consumer affluence and companies tailoring their product designs and marketing specifically to target the young adult population group, the trend of robust double-digit annual volume growth is expected to continue over the forecast period. The foray of leading national players into emerging categories, such as energy drinks and 100% juice will help sustain high growth rates in the future. Competition from the unorganized sector is expected to decline over the forecast period, as the national players make a concerted effort to educate consumers about the health benefits of packaged drinks, and move into markets such as bulk bottled water, which are currently dominated by the unorganized sector.

Chapter-2

3

Company Profile History Coca-cola originated in Atlanta, Georgia, on May 8, 1886. Pharmacist Dr. J.S.Pemberton stirred up a fragment caramel colored syrup in a three – legged brass kettle in his backyard and carried a jug of his formulation down the street to Jacob’s pharmacy. That same day, the new product made its debut as a soda fountain drink for five cents a glass, when carbonated water was mixed with the new syrup, refreshment history was made! Thinking that two C’s would look well in advertisement Dr. Pemberton suggested the name & calligraphic the famous trademark in a unique script. On May 29th 1886, the first newspaper advertisement appeared in the Atlanta Journal which proclaimed Coca-cola was delicious and refreshing & the theme continues to echo today. Following the death of Dr. J.S.Pembeston in 1888, all his remaining rights to the product were purchased by G.Candler, a druggist & Atlanta Businessman. Mr. Candler recognized great potential in Coca-cola & went on to acquire compete control for 2300 in 1891. As Candler’s strategy was to make Coca-cola available every where & to trigger desire as often & in as many ways possible. This strategy is still used today. United States patent officer on January 31st 1893, and has been renewed periodically. That same year, the first dividend was paid to the shareholders. Non-alcoholic soft drink beverage market can be divided in to fruit drinks & soft drinks. Soft drinks can be further divided into carbonated & non-carbonated drinks. Coca, lemon & oranges are carbonated drinks, while mango drinks come under non-carbonated category. The soft drinks market till early 1990’s was in hands of domestic players like Campa, Thumbs up, Limca etc. But with opening up of economy & coming of MNC players Pepsi & Coke the market has come totally under their control, while worldwide Coke is leader in carbonated drinks market in India. It is Pepsi which scores one coke but this difference is fast decreasing (Courtesy huge ad-spending by both the players). Soft drinks are available in glass bottles, aluminum cans & PET bottles for home consumption.

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Know About their Global Bottling System Today, our products reach consumers and customers around the world through a vast distribution network made up of local bottling companies. These bottlers are located around the world, and most are independent businesses. Using syrups, concentrates and beverage bases produced by The Coca-Cola Company, our global bottling system packages and markets products, then distributes them to more than 14 million retail outlets

worldwide.

The Coca-cola is committed to assisting its bottlers with the functions of an efficient bottling operation and initiating quality systems to ensure the highest quality products for our consumers.

Coca-cola :- One of the Worlds Largest Beverage Company

The coca-cola company exists to benefit, refresh everyone it touches, for more than century they have been fulfilling this promise. Since its beginning in spirit of 1886, Coca-cola has grown to become the most recognized trademark in history. Operating in more than 195 countries worldwide, Coke is the most popular beverage on earth & is enjoyed over 773,000,000 times daily. The Coca-cola is the worldwide leading manufactures, marketer & distributor of non alcoholic beverage concentrates & syrups, with world headquarters in Atlanta, Georgia. The Co’s & its subsidiaries enjoy nearly 31000 people around the world. Syrups, concentrates & beverages bases for Coke. The Coke flagship brand & over 230 other company soft drink brands are manufactured & sold by the Coca Cola Co’s & its subsidiaries in nearly 200 countries around world.

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While much of the world has changed since 1886, with the old giving way to the new at almost daily strokes, what has withstood the test and taste of time, binding the young and old to enjoy their moments of simple pleasure and eternal joy is the magic of Coke. And this year, consumers the world over will reach for products of The Coca-Cola Company more than a billion times every single day. It is one of the world’s largest beverage company, which has come a long way since its modest beginnings more than a century ago...

Coke Advertisements: - It’s the Real Thing Advertising has played an important role in the success of our products since our first newspaper ad in 1886, which read, "Coke” Delicious! Refreshing! Exhilarating! Invigorating!" The Company uses advertising to trigger desire as often and in as many ways as possible. Throughout the years, slogans for Coke have always been memorable. Here are some highlights:

2000 - COCA-COLA ENJOY 1993 - ALWAYS COCA-COLA 1990 - CAN’T BEAT THE REAL THING 1989 - CAN’T BEAT THE FEELING 1986 - RED, WHITE AND YOU 1982 - COKE IS IT 1976 - COKE ADDS LIFE 1971 - I’D LIKE TO BUY THE WORLD A COKE 1969 - ITS THE REAL THING 1963 - THINGS GO BETTER WITH COKE 1959 - BE REALLY REFRESHED 1944 - GLOBAL HIGH SIGN 6

1942 - ITS THE REAL THING 1936 - ITS THE REFRESHING THING TO DO 1922 - THE PAUSE THAT REFRESHES Fresh, creative and tasteful, advertising images for Coca-Cola have always set a high standard of quality for other products around the world. The Company recognizes that Coca-Cola belongs to the billions of consumers in every corner of the globe who have chosen it as their favorite soft drink. Their advertising reflects that special relationship between consumers and the simple moments of pleasure they have come to associate with Coca-Cola.

Quality is their Highest Business Objective:-

The ultimate objective of our business strategy is to increase volume, expand our share of worldwide non-alcoholic ready to drink beverages sales, maximize our long term cash flows & create economic value added by improving economic profit. The Coke system has more than 16 million customers around the world that sell or serve our products directly to consumers. We keenly focus on enhancing value for these customers & helping them grow their beverages businesses. We strive to understand each customer’s business & needs, weather that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market. There are nearly 6 billion people in the world who are potential consumers of our company’s products. Ultimately our success & our mission depend on our ability to satisfy more of their beverage consumption demands and our ability to add value for our customers. We achieve this when we place the right products in the right markets at the right time.

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Strong cash flow position, which can be derived from consistent performance and lower investment requirements of average earnings per share growth of approximately 154. Over the long term capital expenditure will be stable to declining from historical trends over the next 5 years, as the investments in the bottling side of the business will be reduced. Maintain the net debt to net capital ratios that have been shown historically. The Coke exists to benefit and refresh everyone it touches. Quality is more than just something we taste or see or measure. It shows in our every action. They relentlessly strive to exceed the world's ever-changing expectations because keeping the Quality promise in the marketplace is their highest business objective and their enduring obligation. According to Coke , most of the Consumers across the globe choose their brand of refreshment

more

than

a

billion

times

everyday

because

coke

is:

 The Symbol of Quality  Customer and Consumer Satisfaction  A Responsible Citizen of the World

Chapter-3

Coca cola products

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Soft drinks Our dozens of soft drink brands provide flavor and refreshment in a variety of choices. From the original Coca-Cola to most recent introductions, soft drinks from The CocaCola Company are both icons and innovators in the beverage industry. Brand Name: - COCA-COLA Drink Type: - SOFT DRINKS Coca-Cola: Coca-Cola is the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. Created in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola was first offered as a fountain beverage by mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886, patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in every state and territory in the United States. In 1899, The Coca-Cola Company began franchised bottling operations in the United States. Coca-Cola might owe its origins to the United States, but its popularity has made it truly universal. Today, you can find Coca-Cola in virtually

every

part

of

the

world.

Available in the following flavors: Cola, Cola Green Tea, Cola Lemon, Cola Lemon Lime,

Cola

Lime,

Cola

Orange

and

Cola

Raspberry.

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10

Chapter-4

CUSTOMER SATISFACTION

DEFINITION OF CUSTOMER Customer is a value - maximizer, within the bounds of search costs and limited knowledge, mobility, income and form an expectation of value and act upon it. Whether

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or not the offer lives up to the value expectation affects both satisfaction and repurchase probability. Gandhi's

definition

of

customer

can

be

given

as

–

1) A customer is not an outsider to our business. He is definite apart of it. A customer is not

an

interruption

main

of

our

work.

purpose

He

is

the

of

it.

2) A customer is doing us a favor by letting us serve him. We are not doing any favor. 3) A customer is not a cold statistic; he is a flesh & blood human being with feelings and emotions

like

our

own.

4) A customer is not someone to argue or match wits with. He deserves courteous and attentive 5)

A

treatment. customer

is

not

dependent

on

us.

We

are

dependent

on

him.

6) A customer brings us his wants. It is our job to handle them properly and profitablyboth to him and us.

DEFINING CUSTOMER VALUE AND SATISFACTION:-

Customer Value:-Customers will buy from the firm that they see as offering the highest perceived value. Customer perceived value (CPV) is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. The customer delivered value has two components –total customer value and total customer cost.

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Total Customer Value is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. Total Customer Cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering.

Customer satisfaction: The provision of goods or services which fulfill the customer's expectations in terms of quality and service Customer Satisfaction:Customer satisfaction is more a function of how closely your customers' experiences with your business conform to their expectation." Customer means that the customer's needs are met, products and services are satisfactory and

customer

experience

is

positive.

Kotler (1997) defines customer satisfaction as follows- "satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a product is perceived performance (or outcome) in relation to his or her expectations." It portrayed the idea of measuring how satisfied customers are with the organization's efforts in a market place. Customer satisfaction measures the following variables: 1) product 2) service 3) relationship 4) price 5) convenience 6) brand image 7) brand association 8) total customer experience

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Some more definitions of Customer satisfaction can be given as:Customer satisfaction: The provision of goods or services which fulfill the customer's expectations in terms of quality and service Customer satisfaction: - A state that results when an exchange meets the needs and expectations of the buyer. Customer Satisfaction: - Retailers know that satisfied customers are loyal customers. Consequently, retailers must develop strategies intended to build relationships that result in customers returning to make more purchases. Customer satisfaction: - The degree to which there is match between the customer's expectations of the product and the actual performance of the product. Customer Satisfaction= [customer experience-customer expectation] Customer Satisfaction > 0. It enhance the customers LMV Customer Satisfaction