Customer Satisfaction about Coca Cola Beverage: Analysis and Findings

This report delves into the realm of customer satisfaction within the Coca-Cola beverage market. It investigates the significance of customer satisfaction for multinational companies, focusing on how Coca-Cola achieves high levels of customer loyalty. The report examines factors influencing customer satisfaction, such as company size, financial strength, and technological capabilities. It further explores the direct correlation between customer satisfaction and revenue generation, highlighting how loyal customers contribute to continuous revenue streams. The research also includes a literature review, methodology, results discussion, and recommendations for Coca-Cola to enhance its customer satisfaction strategies. The findings provide insights into the company's market position, competitive landscape, and the importance of customer-centric approaches in maintaining a strong global presence.

Running head: CUSTOMER SATISFACTION ABOUT COCA COLA BEVERAGE
Customer Satisfaction about Coca Cola Beverage
Name of the Student:
Name of the University:
Author Note:

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CUSTOMER SATISFACTION ABOUT COCA COLA BEVERAGE
Table of Contents
1. Introduction and background:..................................................................................................1
1.1. Introduction:.............................................................................................................................1
1.2. Company Background:.............................................................................................................1
1.2.1. Nature, leadership and financial information of Coca Cola Company:.............................1
1.2.2. Products and markets:........................................................................................................2
1.2.3. Competitors of Coca Cola Company:................................................................................2
1.3. Problem of statement:...............................................................................................................2
1.4. Research Objectives:................................................................................................................2
1.5. Utility of Research Study:........................................................................................................3
1.6. Outline of chapters:...................................................................................................................3
2. Literature review:.........................................................................................................................4
2.1. Introduction:.........................................................................................................................4
2.2. The concept of customer satisfaction:..................................................................................4
2.3. Factors affecting customer satisfaction:...................................................................................5
2.4. Customer satisfaction and revenue generation:....................................................................7
2.5. Customer satisfaction and capital generation:....................................................................10
2.6. Customer satisfaction and global market position:.................................................................11
2.7. Conclusion:.............................................................................................................................12
3. Methodology:.............................................................................................................................12

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3.1. Research design and tactics:...............................................................................................12
3.3. Research philosophy and approach:...................................................................................13
3.4. Source of data, methodology and Sampling:......................................................................13
3.5. Tool for data analysis:........................................................................................................14
4. Result discussion and evaluation...............................................................................................15
4.1. Introduction.........................................................................................................................15
4.2. Results of questionnaires....................................................................................................15
4.3. Discussion...........................................................................................................................17
4.4. Findings..............................................................................................................................19
4.5. Limitation...........................................................................................................................22
5.1. Introduction:.......................................................................................................................22
5.2. Conclusion:.........................................................................................................................22
5.3. Recommendations...............................................................................................................24
6. References & Bibliography:......................................................................................................26
6.1. References:.............................................................................................................................26
Appendix 2. Questionnaire:...........................................................................................................32
Appendix 5. Data Results and charts:............................................................................................41

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1. Introduction and background:
1.1. Introduction:
The context of the report is to delve to customer satisfaction which Coca Cola Company
achieves by marketing its beverage products in the global market. Customer satisfaction is a very
important aspect which multinational companies aim to achieve in order to acquire large bases of
loyal customers which keep on consuming their products. These large bases of loyal customers
keep on consuming the products of multinational companies on regular base which generate
continuous streams of revenue for these companies. Thus, the multinational companies are able
to prevent or reduce the customer poaching efforts which their competitors out to divert their
customers. Thus, customer satisfaction has emerged as a matter of great importance to
multinational companies to maintain their steady revenue flow and retaining their global
positions. The research would delve into the factors which contribute towards high levels of
customer satisfaction which Coca Cola Company achieves in the global market.
1.2. Company Background:
1.2.1. Nature, leadership and financial information of Coca Cola Company:
The Coca Cola is the world’s largest marketer of beverage products based in the United
States of America. The company is a primarily listed on the New York Stock Exchange and
operates in more than a hundred countries in the world. The company is led by James Quincey as
its chairperson and CEO and Brian Smith functioning in the capacity of president and COO. The
annual reports of the Coca Cola Company shows that the company earned a net income $ 6476
million for the period 2018 against $ 1283 million for the period 2017.

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1.2.2. Products and markets:
The product line of the Coca Cola Company consists of more than twenty brands which
include diverse range of products. The flagship brand of the company consists of Coca Cola and
its variants, all of which hold zenith positions in the beverage market. The company markets
products like Georgia which is a ready to consume coffee drink, Honest Tea, Powerade which is
an energy sports drinks, Sprite which is a clear aerated drink, Fairlife which is a fat free milk
based drink, Smart Water which is a brand of mineral water and Minute Made ready to serve
fruit drink. Coca Cola Company also owns Costa Coffee which is a British multinational
company. The main markets of Coca Cola Company are North America, South America, Europe,
Asia and Australia.
1.2.3. Competitors of Coca Cola Company:
The main international competitors of Coca Cola Company is PepsiCo, also based in the
United States of America. PepsiCo markets similar products as Coca Cola and shares markets
with the latter. The weaker competitors of Coca Cola are the local brands of aerated drinks which
smaller firms manufacture in specific markets.
1.3. Problem of statement:
The problem statement which would lead the research would be ‘Consumer satisfaction
has positive impact on the profit of Cola Company.’
1.4. Research Objectives:
The following are the research objectives which the research would seek to achieve:
1. Customer satisfaction has positive impacts on revenue generation of Coca Cola Company.
2. Customer satisfaction has positive impacts on capital generation.

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3. Customer satisfaction has positive impacts on global market position.
1.5. Utility of Research Study:
The utility of the research lies in the fact that customer satisfaction has strong impacts on
revenue generation, capital generation and market positions of the multinational companies.
Companies which fail to ensure customer satisfaction lose their market positions and even have
to face risks like financial risks. It is due to this reason that multinational companies make
strategies to ensure customer satisfaction. The report would shed light on significance of
customer satisfaction in the literature review by dealing meticulously with various aspects of the
topic namely, customer satisfaction.
1.6. Outline of chapters:
The research would consist of five chapters each dealing into an aspect of the research.
The first chapter would introduce the area of research and the company which would form the
base of the research namely, Coca Cola. The second chapter would be literature review which
would in turn be subdivided into five different parts except the introduction and conclusion. Each
of the five subdivisions would delve into an aspect of topic namely, customer satisfaction and its
positive outcomes of the company selected namely, Coca Cola. This would be followed by the
research methodology which would provide information about the approach which was adopted
to conduct the research. The fourth chapter would discuss the findings which would transpire
from the research. The fifth and the last chapter would conclude the research to recommend the
management of Coca Cola Company ways to boost customer satisfaction.

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2. Literature review:
2.1. Introduction:
The literature review would take into account the past researches carried by different
authors in the area of customer satisfaction. The researcher would compare and contrast between
the findings of the articles which would be taken into account to substantiate the research. This
collection of large volume of data collected from previous works would provide a strong base to
the research. The knowledge gained from the articles would be then aligned to the topic of
research namely, customer satisfaction of Coca Cola products.
2.2. The concept of customer satisfaction:
The customer satisfaction is one of the business outcome which multinational companies
aim to achieve by offering products to customers which either meet or surpass the expectations
of the latter. Lu et al. (2015) in their work define the term as ‘meeting the customers’ satisfaction
of products and services by comparing with perceived performance.’ Thus, it can be pointed out
from the definition that customer satisfaction refers to the ability of the firms to market products
which are aligned with the expectation of the customers. Shih, Yu and Tseng (2015) on the other
hand defines the customer satisfaction as the situation in which the products are able to meet the
parameters which customers had set for them. The parameters over here refer to requirements
like quality parameters, quantity parameters and cost parameters. An analysis of the
aforementioned articles bring into light the fact the customer satisfaction can have two meanings.
The term can mean that products are able to satisfy the customer expectations. The second
explanation of the term is that, products are able to meet the parameters which customers
predetermine in terms of quality and pricing.

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As far as Coca Cola Company is concerned, it can be pointed out that the company is
able to achieve high level of customer satisfaction. This high level of customer satisfaction is
evident from the top market share in the global beverage market which Coca Cola, the flagship
coal drink the company market boasts. An article published by the CNN in the year 2018
reported that the the market share of Coca Cola in the traditional cola drink market has risen
from 17.3 percent to 17.8 percent. The article also shows that Coca Cola products ensures high
level of customer satisfaction even among the health conscious consumers. This is evident from
the fact that in competition between Diet Coke, the zero calorie variant of Coca Cola and its
nearest competitor, Diet Pepsi, zero calorie variant of Pepsi, the former boasts a bigger customer
base (Wiener-Bronner 2018). However, according to an article published in the Forbes, Pepsi
holds a higher position than Coca Cola in the global food market (McGrath 2017). Thus, it is
evident from this analysis though Coca Cola boasts the position of the largest manufacturer and
marketer of beverage, it does face strong competition from its nearest competitor, PepsiCo. Thus,
it transpires from the discussion that Coca Cola achieves high level of customer satisfaction
which is evident from its top position in the market.
2.3. Factors affecting customer satisfaction:
Customer satisfaction is dependent on several factors. The first factor which comes into
play while achieving customer satisfaction is the size of operations. Chang and Thai (2016)
mentions that size of operations of business organisations is directly proportional to customer
satisfaction. They mention that large multinational firms are generally able to ensure higher
levels of customer satisfaction. Navimipour and Soltani (2016) strengthen the opinion by
mentioning that achievement of customer satisfaction require firms to invest immense capital in
product manufacturing. Aghamirian, Dorri and Aghamirian (2015) contradict the opinion by

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pointing out that customer satisfaction is not dependent on product manufacturing alone. They
point out that multinational companies in order to ensure that their products are aligned to the
customer requirements, acquire data regarding customer requirements. Wang et al. (2016) opine
that multinational companies communicate with customers on different platforms like social
media handles and feedback option page attached to their official websites. They encourage the
customers to communicate the expectations regarding their products and the changes which the
customers expect to see in the future. The companies then integrate this data on customers’
expectations and feedback to form future product strategies. Trejo, Gutiérrez and Guzman (2016)
opine that multinational companies in order to acquire and manage these immense mass of
customer data in the knowledge management systems, installation of which attract immense
investments. Abdallah, Phan and Matsui (2016) mention in this respect that the business
organisations in order to form strategies to ensure customer satisfaction and implement the same,
require to employ highly skilled and trained employees which attracts immense salary
expenditure. It is clear from this explanation that customer satisfaction attracts immense initial
investment from the side of the companies which small companies cannot generally afford. Thus,
it can be pointed out that achievement of customer satisfaction comes under impact on several
factors like financial strength, manpower and technological prowess.
As far as Coca Cola Company is concerned, it can be pointed out that the multinational
company is strong financially. The company’s share can be traded from multiple stock
exchanges including NYSE which enables acquisitions of immense capital. The company
mobilises the capital towards acquisition of highly advanced technology to manufacture high
quality products. The company maintains continuous feedback from customers on its active
social media handles which enables it to gain immense body of customer feedback which it

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channelizes towards making product strategies. Moreover, Coca Cola being a global company is
able to attract the skilled and experienced human resources from all around the globe. Thus, it is
evident that customer satisfaction to a great extent depends on the size of the company and its
capabilities.
2.4. Customer satisfaction and revenue generation:
Customer satisfaction is directly proportional to revenue generation. Rodriguez, Peterson
and Ajjan (2015) mention that customer satisfaction generally encourages revenue generation.
This is because customer satisfaction encourages customers to consume the concerned product
on repeated basis. Thus, the companies marketing products which achieve customer satisfaction
are able to generate repeat business from loyal customer bases. Sao et al. (2017) mention that
ensuring total customer satisfaction is not feasible and companies do keep on losing their
customers to their competitors even if it means by a small proportion. Sajid (2016) points out
that companies in order to expand their revenue bases invest capital in promoting their respective
products in the market with the aim to acquire new customers. An analysis of these three articles
mentioned above brings into light that loyal bases of customers generate revenue for companies
with very little promotional costs compared to the former. Saleem et al.(2015) point out that the
relationship between customer satisfaction and revenue generation remain directly proportional
subject to fulfilment of the factors which contributes towards customer satisfaction. Razak,
Nirwanto and Triatmanto (2016) supporting this view point out that companies have to ensure
that they are able to offer superior quality products at prices as per expectations of customers.
Thus, the directly proportional relationship between customer satisfaction and revenue
generation holds true only if the criteria of product quality and pricing are true. Saleem et al.
(2015) contradict the opinion of the previous authors to point out that the two independent

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variables which support the relationship between customer relationship and revenue generation
are in fact dependent on the perceptions of customers regarding quality. They point out that
perception among customers regarding quality differs and thus, customer loyalty differs too.
Thus, it can be inferred from the description that the direct proportional relationship between
customer satisfaction and revenue generation hold true in most cases.
Mont
h
Custome
r nos
loyal
customers(%)
Unit
ordered
Per unit
price($)
Revenue
generation)$)
1 100000 70 70000 10 700000
2 100000 85 85000 10 850000
3 100000 80 80000 10 800000
4 100000 75 75000 10 750000
5 100000 90 90000 10 900000
6 100000 75 75000 10 750000
7 100000 85 85000 10 850000
8 100000 94 94000 10 940000
9 100000 75 75000 10 750000
10 100000 90 90000 10 900000
11 100000 70 70000 10 700000
12 100000 80 80000 10 800000
Figure 1. Relationship between customer satisfaction and revenue generation
(Source: Author)
The table above tries to exemplify the relationship between customer satisfactions. It has
been assumed that the customer number has remained constant at 100000 for a period of 12
months. Since customer satisfaction rates which companies achieve varies, the percentages of
loyal customers have been placed randomly. It has also been assumed that the price of the
product pre unit would also remain same. The resultant revenue as shown increases with the
customer loyalty percentage. Thus, it can established given the factors like the customer

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population and per unit price remain same, revenue generation is directly proportional to
customer satsiafcation.
As far as Coca Cola is concerned, the multinational company earns a very high revenue
which is evident from the excerpt of the consolidated income statement for the period 2018.
However, the income statement shown below shows that the company earned a gross profit of $
20086 mn compared to $ 22155 mn in 2017. It can however be pointed out that the selling,
general and administrative expenses were 12654 mn USD which came down to USD 10307 mn
(Coca-colacompany.com. 2019). If it is assumed that the selling costs include the promotional
costs as well, then it can be pointed out that the company has succeeded in reducing its
promotional costs. Thus, this finding can be expanded to the concept that loyal base of customers
attribute companies with more repeat business at reduced additional promotional costs (Sajid
2016). This reduction of costs enable the companies to generate higher net profit rates. The
statement can be proved form the fact that in contrast to the gross profit, the rate of net profits
has increased in 2018 compared to 2017. Thus, it transpires from the description that customer
satisfaction and revenue generation are directly proportional.