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CHAPTER # 1:
Problem and Its Background

Management Problem:
The marketing problem faced by Coca Cola beverage private limited is the fact that being the first soft drink brand and enjoying a high market share once. They are now struggling to keep up this relative market share. With sales declining in each quarter and as a result coke has a low market share in Pakistan, (especially in Karachi). As a result “low sales in conjunction with the sales of Pepsi”. Research Problem:

Considerable considerations have been given to the distribution problem and have come up with the following research problem. Coca-Cola as a global brand in relation to perception and preference of consumers in Karachi.

Hypothesis:
At least 30% consumers prefer Coca Cola as their favorite CSD (Carbonated Soft Drink)

Significance and Restraints of the Study:

1 Significance

• From study the company will be able to identify the reasons for their low sales

• The company will be informed about the changes that they need to make in their strategies so as to increase sales.

• The company will be able to make informed and guided decisions so as to solve their management problem

ii. Restraints

• We will have to select large retailers or restaurants properly.

• There will be biases among the consumers

• There is very little consumer loyalty to the brand and so respondents might not be able to answer questions properly.

Brief History of Carbonated Soft Drink Industry

The history of the carbonated soft drink market is an interesting one that sheds some light on the industry structure and conduct of today.

The first marketed (noncarbonated) soft drinks actually appeared in the seventeenth century (they were made from water and lemon juice sweetened with honey).

In Paris, vendors carried tanks of lemonade on their backs and dispensed cups to customers on the streets.

Carbonated soft drinks date back to the mineral water found in natural springs – scientist discovered that carbon dioxide was behind the bubbles in natural mineral water.

Over time, scientists and entrepreneurs devised various methods for adding carbonation to beverages.

In 1767, the first drinkable man made glass of carbonated water was created by Dr. Joseph Priestly in the United Kingdom.

In 1798, the term soda water was first coined, and in 1810, the first U.S patent was issued for the “means of mass manufacturer of imitation mineral waters” to Simon and Rudnell of Charleston, South Carolina.

However, carbonated beverages did not achieve great popularity in America until the 1830s, when an easily mass manufactured apparatus for making carbonated water was created and offered for sale and soda fountain owners.

By 1920, the US census had reported that over 5,000 bottlers were in operation.

The first ginger ale was created in Ireland in 1851, the first root beer was mass produced for public sale in 1876, the first cola-flavored beverage was introduced in 1881, and the first “no-cal” beverage was introduced in 1952.

By the 1950s, American pharmacies with soda fountains became a popular part of culture and persisted en masses until the late 1960s.

Overtime, customers soon wanted to take their “health” drinks home with them and soft drinks bottling industry grew from consumer demand.

Today, the interplay between the “Big Three ” players (Coca-cola, Pepsi-cola and Cadbury Schweppes) on the manufacturing side, the bottles on the distribution end, the retailers downstream and the end-use consumers is a complex and ever-evolving maze of horizontal and vertical relationship that requires a deep understanding od the players as well as the dynamic interactions across each.

A Brief Introduction of the Coca Cola Company
Coca-Cola, the product that has given the world its best-known...
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